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Quarterly Outlook: The Space Between

Quarterly Outlook: The Space Between

Being in the space between should feel somewhat familiar to investors, as we experienced a space between back in 2022. Uncertainty and market volatility was pronounced that year, as investors debated how a rapid rise in Fed interest rates and the associated weakening in sentiment/soft data would weigh on real economic activity. Forecasters slashed estimates for U.S. GDP and S&P 500 EPS growth, broadly expecting a recession to be the end result of that space between, while equities experienced a bear market in anticipation of this weaker growth.

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