The Bubble Question

In this episode of The Markets, Chris Hussey interviews Mike Washington about the third-quarter earnings season, the trade war, and potential market bubbles. Mike notes the resilience of U.S. bank earnings and the U.S. consumer, despite fears of a slowdown. He downplays concerns about the trade war, highlighting the resilience of retail investors, and shares his perspective on whether the market is in a bubble, citing strong earnings growth and significant retail and foreign investment. Mike suggests focusing on retail, which has underperformed, and recommends downside protection due to potential government shutdowns affecting data availability and concerns about employment. He also emphasizes the importance of the upcoming earnings reports from the top 10 stocks, which constitute a significant portion of the global stock market.