NDR: When to Consider Downgrading Our Bullish Outlook?

We are excited to introduce you to NDR's Signal Exchange, a new series of 3-5 minute videos where the Strategists of Ned Davis Research answer your top questions about the financial markets. Whether it's a timely event or a deep dive into NDR's approach and methodology, our experts are here to provide you with valuable insights.

In our second episode, Ed Clissold, NDR's Chief U.S. Strategist, addresses a common client question: When does NDR think its time for a downgrade to the long term bullish outlook on the US stock market?

Here are the key points from the discussion:

• Bullish Outlook: What are the potential conditions for downgrading NDR's bullish outlook on the US stock market?
• Key Drivers: Disinflation, earnings acceleration, and strong technicals are driving the bull market.
• Disinflation Risks: Rising rent prices and tariffs could threaten disinflation.
• Earnings Growth: Earnings growth, especially from "Mag 7" stocks, may slow in 2025.
• Technical Weakness: Indicators like the advanced decline line show weakening trends, which could signal market tops.

If you have questions or want deeper analysis, feel free to submit them for our next episode by emailing neddavisresearch@ndr.com.

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