Stock market outlook: The rally has run its course, strategist says

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The stock market rally has run its course as earnings highlight weakening consumer demand, strategist says

Large-cap US stocks are hovering near their highs for 2023, but the market's upside momentum is losing steam as corporate earnings underscore a slump in consumer spending, according to the top strategist at a $500 million investment firm.

Now"is not a time for investors to return to a buy-the-dip mentality, as there is still too much uncertainty over the Fed's interest rate trajectory and how corporate earnings will fare in this elevated interest rate environment," Robert Schein, chief investment officer of Blanke Schein Wealth Management, said in a note published Thursday.has gained 8% this year and is up 19% from its bear-market low of 3,491.58 logged in October.

But Schein said his shop is cautious on equities as the number of stocks making new highs is lower than the number of stocks making new highs at the same time last year. That"suggests that the stock market rally so far this year may have run its course," said Schein, whose firm his based in Palm Desert, California. "The main takeaway from earnings season so far is that consumer demand is weakening," said Schein. He outpointed Tesla's

 

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