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Eric Basmajian argues that the prevailing trade in financial markets involves investors owning stocks to stay on the winning side.
He attributes the ongoing strength of the bull case to record profit margins, which he describes as a genuine foundation for market optimism. Basmajian suggests this strategy will continue to succeed as long as the broader regime remains unchanged.
Basmajian has previously observed that both the worst and best three-month stock performance periods typically occur during recessions, according to one of his earlier notes. In a separate analysis, he identified residential investment as the only one of three main U.S. recession drivers currently contracting, with housing leading declines ahead of durable goods and other sectors, as detailed in his report. These observations frame Basmajian’s ongoing assessment of current market strategies.