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.

What is the revised year-end outlook for the S&P 500 according to David Stubbs?

• 4500

• 4250

• 4000

• 4750

Which sector is highlighted as having resilience over the earnings pattern?

• Healthcare

• Finance

• Energy

• Technology

What is the expected growth rate for the US economy next year as mentioned by David?

• 2.0%

• 3.0%

• 1.4%

• 2.5%

What needs to happen before the equity market can rally sustainably, according to David?

• Increase in inflation

• Clear signs of optimism in corporate earnings

• Decrease in labor market wage growth

• Fed policy tightening above 3%

What yield on the US 10-year bond does David suggest is a good time to add duration?

• Below 2%

• Above 3%

• Above 4%

• Exactly 3%