Investors shouldn’t automatically increase their exposure to stocks

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The U.S. stock market still has plenty of room to rise: Sevens Report President, Tom Essaye, Quoted in TradeAlgo.com

Dow Jones and Russell 2000 Are Joining the Stock Market Party. Would It Be a Game Changer for the Bulls?

Tom Essaye, founder of Sevens Report Research, cautioned that investors shouldn’t automatically increase their exposure to stocks just because the Dow is near record levels.

While the Dow’s strong performance is a positive sign, he noted that it represents only 30 large-cap companies and doesn’t offer a complete picture of market health.

Essaye argued that more meaningful progress would come from record highs in the Russell 2000 or the equal-weighted S&P 500 index, both of which provide a broader view of market performance. While both have recently moved closer to their previous highs from November, they still have ground to cover before establishing new records.

Also, click here to view the full article, published on July 4th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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The U.S. stock market still has plenty of room to rise

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The U.S. stock market still has plenty of room to rise: Sevens Report President, Tom Essaye, Quoted in AInvest.com

More Stocks Join the Surge, Signaling More Upside Ahead

Tom Essaye, founder of research firm Sevens Report, added that as long as conditions remain stable, the U.S. stock market still has plenty of room to rise.

He said market breadth has improved recently because investors who missed the historic rally in tech stocks are now looking for opportunities in other sectors—a classic case of “FOMO” (fear of missing out) trading.

Also, click here to view the full article, published on July 1st, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Sevens Report President Tom Essaye noted four

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Sevens Report President Tom Essaye noted four: Tom Essaye Quoted in Barron’s

Stocks Are Hitting New Highs and Investors Don’t Believe It

Sevens Report President Tom Essaye noted four. The first is the Trump administration itself; investors have gotten comfortable with the idea that the White House won’t pursue any policies that will damage the economy. “Trump employs a negotiating strategy that involves threatening a near absurdity and then getting people to move in his direction (so the worst case doesn’t happen, but he still exacts gains),” Essaye wrote.

Secondly, he said, there is still no evidence that stagflation is taking hold. Although tariffs may be inflationary, that will be somewhat offset, most investors believe, by lower energy and housing prices. That could mean overall inflation cools enough to allow the Federal Reserve to cut interest rates.

Third, enthusiasm around artificial intelligence is still in full swing.

And finally, stocks don’t look that expensive. The S&P 500 is trading at more than 23 times the 2025 aggregate earnings of $260 to $265 expected for its component companies, but “analysts are quickly pivoting to using 2026 earnings estimates, which are between $290-$300/share,” he wrote.

“Based on that valuation math (6,141/$295) the S&P 500 is trading at just 20.8X earnings, a reasonable number (as long as you agree with all the assumptions built into this rally).”

Also, click here to view the full article featured on Barron’s published on June 30th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Won’t do anything to materially hurt the economy

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Won’t do anything to materially hurt the economy: Sevens Report Analysts Quoted in Investing.com

New S&P 500 high raises questions on longevity – Sevens Report

According to financial research firm Sevens Report, the climb was underpinned by confidence that the administration “won’t do anything to materially hurt the economy,” even as tariff threats and aggressive rhetoric persist.

“The No. 1 reason the S&P 500 has returned to the February highs is because the market has confidence that the administration won’t do anything to materially hurt the economy and that belief is the foundation upon which the Q2 rebound was built,” it said.

Another driver was the absence of stagflation concerns. “The market is not afraid of tariff-driven stagflation anymore,” the report said, pointing to cooling housing and energy prices helping to offset inflationary pressure.

“Analysts are quickly pivoting to using 2026 earnings estimates, which are between $290-$300/share. Based on that valuation math (6,141/$295), the S&P 500 is trading at just 20.8X earnings, a reasonable number,” the firm noted.

Also, click here to view the full article featured on Investing.com published on June 30th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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As long as there is no escalation

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As long as there is no escalation: Tom Essaye Quoted in Inc.com

Wall Street Braces for Market Fallout After the U.S. Bombed Iran

Meanwhile, Tom Essaye, founder of Sevens Report Research, told Opening Bell Daily that as long as there is no escalation, he does not see the event as a “new negative” for markets.

“In some ways, this removes a potential unknown from the markets because it was unclear whether the US would strike or not,” Essaye said.

Also, click here to view the full article featured on Inc.com, published on June 23rd, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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This market is not exhausted by any stretch of the imagination

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This market is not exhausted by any stretch of the imagination: Tom Essaye Quoted in The Wall Street Journal

The Stock-Market Rally Is Moving Beyond Big Tech and Investors Are Thrilled

“As long as things can stay stable, then this market is not exhausted by any stretch of the imagination,” said Tom Essaye, founder of the Sevens Report, a market analysis firm.

Market breadth has improved as investors who missed out on tech stocks’ historic rebound search for new opportunities in different industries, Essaye said. He called it the “FOMO trade,” referencing the acronym for “fear of missing out.”

Also, click here to view the full article featured on The Wall Street Journal published on June 28th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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The recent advance toward record territory is “broad-based”

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The recent advance toward record territory is “broad-based”: Tom Essaye Quoted in Morningstar

Tech stocks are powering this record-setting rally on Wall Street – but how long can it last?

Tom Essaye, founder and president of Sevens Report Research, said that the new highs in the NYSE A/D line showed that the recent advance toward record territory is “broad-based,” and it should be considered “both historically healthy and likely sustainable.”

Also, click here to view the full article published in Morningstar on June 28th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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If inflation surprises to the upside then that will push yields higher and pressure stocks

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If inflation surprises to the upside then that will push yields higher and pressure stocks: Tom Essaye Quoted in Morningstar

EMEA Morning Briefing: Investors Await Fed’s Preferred Inflation Gauge

Focus is on the U.S. PCE inflation report – the Fed’s preferred measure of inflation, due later today. “[Markets] are counting on inflation to stay subdued to keep expectations for two rates cuts in 2025 intact,” said Tom Essaye of Sevens Report Research. “If inflation surprises to the upside – which is unlikely given CPI and PPI were light – then that will push yields higher and pressure stocks.”

Also, click here to view the full Dow Jones article published in Morningstar on June 27th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

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Measures of investors’ mood have shown a good deal of reserve

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Measures of investors’ mood have shown a good deal of reserve: Tom Essaye Quoted in Barron’s

Investors Are Still Wary of the Stock Rally. Five Things That Could Prove Them Right.

That said, they may not be jumping in with both feet. as Sevens Report President Tom Essaye notes, measures of investors’ mood have shown a good deal of reserve.

Consider that the most recent AAII Investor Sentiment Survey, which asks individual investors if they’re bullish or bearish, shows 33.2% bulls, a slight decline from last month, and well below the historical average for bulls of 37.5%. Similarly, the Investors Intelligence Advisor Sentiment Index—like the AAII survey, but for financial advisors—has a Bulls/Bears spread of 10.2%, a still cautious reading.

Likewise, the widely followed CNN Fear/Greed Indicator, which incorporates seven different momentum and sentiment indicators, currently sits at 60%, a level that is “it’s barely in the “Greed” range and…has declined over the past few weeks,” Essaye notes.

Still, that’s actually a good sign, he notes, that the market isn’t overly frothy. It would be much more concerning if every reading were overwhelmingly bullish. As it is the readings don’t “imply the looming possibility of a short squeeze or air pocket.”

Also, click here to view the full article featured on Barron’s published on June 26th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

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Markets are counting on inflation to stay subdued

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Markets are counting on inflation to stay subdued: Sevens Report President, Tom Essaye Quoted in MarketWatch

What’s up with inflation? PCE likely to show a small rise in prices despite tariffs.

“Markets are counting on inflation to stay subdued to keep expectations for two rates cuts in 2025 intact,” wrote Tom Essaye of Sevens Report Research. “If inflation surprises to the upside — which is unlikely given CPI and PPI were light — then that will push yields higher and pressure stocks.”

Also, click here to view the full MarketWatch article, published on June 26th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

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