The Bear Case Weakens - But Here's the Catch
The bear case for US equities is weakening as broader market participation improves. But that is not an all-clear, and a sudden correction remains a credible risk.
In this update, Garry Davis examines three possible market paths over the next 3, 6 and 12 months, weighing what the evidence supports against the risks that could change the picture.
Equal-weight US equities have outperformed the headline index, and investment-grade credit conditions are showing some improvement. At the same time, riskier borrowers face greater pressure and elevated bond yields remain a concern. Garry favours a choppy, selective advance, not a smooth market-wide rally, while recognising that an external catalyst could trigger a meaningful correction.
The failed Firmus IPO adds another important distinction: enormous demand for AI infrastructure does not mean every project is financeable at any valuation. Garry explores why secured power, contracted customers, sound balance sheets and realistic project economics are becoming critical as capital flows towards stronger operators.
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Any advice in this video is general advice only. Neither your personal objectives, financial situation or needs have been taken into consideration. Accordingly, you should consider how appropriate the advice, if any, is to those objectives, financial situation and needs, before acting on the advice. Garry Davis (AR No:317590) is an authorised representative of Primary Securities Ltd (AFSL No. 224107).
Note to traders* The publishers of this material wish to disclose that they may hold stocks mentioned in their portfolios and that any decision to purchase those stocks should be made only after the purchaser has made their own enquiries as to the validity of any information in this material.
Past performance should not be taken as an indicator of future returns.
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