Our Plan 'Be Fearful When Others Are Greedy'

What is the Fed likely to do on Wednesday? That's what everyone is speculating about right now. It seems that no matter where we look, we’re seeing dueling calls for a quarter-point cut and a half-percentage-point one. We still expect a quart-point cut with the Fed’s updated set of economic projections showing fewer rate cuts in 2024-2025 than the market expects.

As we approach that potential market disappointment, the stock market is near short-term overbought levels. With Friday’s close, the price-to-earnings on the S&P 500 was at 23.2-times expected 2024 earnings per share, a hair’s breadth from the multiyear peak of 23.4-times set earlier this year.

Even though the Fear & Greed Index is in “Neutral” as we start the week, we're thinking of the Warren Buffett quote, “Be fearful when others are greedy. Be greedy when others are fearful."

That will lead us to share an updated table of consensus earnings expectations following last week’s barrage of investor conferences later on. Alongside it, we will provide price levels that would make good entry points for newer members and subject to the position size, the portfolio, as well.

Coming up next, as we ease into the week, we’ll discuss some portfolio-related news and then share that updated table and prospective entry points.