US Equity Strategy Weekly Warm-up

The report attributes the current equity market correction to peak earnings revisions and liquidity, but maintains conviction in the bull market as leadership broadens into under-owned cyclical sectors.

Key Takeaways

• 1.Recent equity market correction is driven by the peak rate of change in earnings revisions breadth and tightening liquidity.
• 2.Broadening market leadership is expected into under-owned cyclical groups like Consumer Discretionary Goods, Transports, and Regional Banks.
• 3.OBBBA legislation provides tailwinds for Free Cash Flow through bonus depreciation and R&D expensing, aiding market broadening.

Table of Contents

• Digesting the Peak Rate of Change
• OBBBA Update: Benefits Still Ahead, 2026 FCF Could Surprise
• Cash Tax Rates
• Fresh Money Buy List
• Weekly Charts to Watch

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