ILCB - Sentiment Shifting; Margins In Focus; Tapering Not A Concern - Market Strategy Weekly - August 27 2021

• Strategas Investment Strategist Ryan Grabinski dives deep into recent updates to the Baird Market Gauge ("Sentiment" moved to Favorable from Unfavorable) and hints at a few areas to watch over the coming months.
• The S&P is trading at about 22x forward earnings, which is elevated. But then when you look at things in relative terms (i.e., compared to other asset classes, like bonds) it's actually hard to call stocks too expensive. So it’s a mixed bag.
• Margins are already near record highs, so there's room to come down, and that's a concern because stocks don't typically get into too much trouble until margins start to roll over.
• We also take a look at the Fed's tapering plans and how they might impact markets.

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