Wall Street Doubts the Rally — Here’s Why We Don’t
Sevens Report President Tom Essaye Quoted in Barron’s on What’s Really Driving Stocks Higher
Stocks Are Hitting New Highs and Investors Don’t Believe It
Despite record-breaking highs in the S&P 500, many investors remain skeptical about the sustainability of the rally. In a recent Barron’s feature, Sevens Report President Tom Essaye was quoted outlining four compelling factors supporting continued market strength—from policy stability under the Trump administration to cooling inflation pressures and robust AI-driven momentum. He also breaks down why current stock valuations, when viewed through a forward-looking lens, may not be as stretched as headlines suggest.
Here’s what Tom outlined in the article:
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Policy Confidence: Investors are increasingly confident the Trump administration won’t implement policies that damage the economy.
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No Stagflation Signs: While tariffs may be inflationary, falling energy and housing costs are helping offset price pressure.
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AI Momentum: Enthusiasm around artificial intelligence remains a legitimate growth engine.
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Valuation Still Reasonable: 2026 earnings projections paint a much more attractive valuation story—just over 20× forward earnings.
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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