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?

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