February 12, 2023

Investment Strategist on what it would take to get bullish on the S&P 500

Liz Young, SoFi Head of Investment Strategy discusses market trends during earnings season.

You can see the entire interview here.

Key Video Takeaways

:07 On high S&P valuations

:35 On the valuation level needed to get bullish

Video Transcript

LIZ YOUNG: Look, I’m not going to call levels on the S&P, but what I will say is, again, I think that valuations are a bit high here. And also, remember, yes, this has been a strong rally in January, but it comes after a pretty painful December. So the NASDAQ was already down 9% in December, up only– you know, it’s 11% up in January, but that’s just partially even making up for what happened in December.

Now, as the market digests whether or not we actually have a classic recession and whether or not earnings are worse than expected and operating margins are getting compressed, that’s where I think you see another flush down. The level that I would be watching is in that 3,500 mark. Now that is close to the October lows, but that’s where I would want to start nibbling and that’s where I would get actually bullish on some of the more cyclical parts of the market.

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