JPM's Stubbs Cuts S&P Outlook to 4,250

David Stubbs from JP Morgan discusses the recent decline in stock prices, attributing it to a drop in distant earnings and revising the S&P 500 outlook to 4250. He highlights margin compression and slow economic growth, predicting a 1.4% growth for the US next year. Despite a muted earnings outlook, there are opportunities for traders. Stubbs advises adding to bond duration, especially when the 10-year yield is above 3%, as bonds can protect portfolios amid economic slowdown.

In what ways do the current trends in the bond market differ from those in the equity market?

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What are the potential implications of a severe economic slowdown on investment strategies?

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