11/13/2026 Market Volatility Update

With all the volatility and headlines, Lizzie shares her take on the market and economy going into the weekend.

Transcript:

Recent market volatility has understandably made investors uneasy. But when we look beyond the headlines, we believe there are reasons to remain constructive and there are opportunities to be selective. AI spending remains our central investment theme for 2027. Investment is projected to exceed $1.4 trillion next year, approaching 4% of U.S. GDP. Election results have raised concerns about tighter restrictions on data center development. States potentially facing tighter restrictions account for 45% of planned capacity.

That's meaningful. But don't forget these are planned projects, and in our view, these restrictions are more likely to change when and where they get built, rather than whether they will ultimately move forward. We see greater potential implications for projects later in the decade than in the immediate investment cycle. Earnings remain another source of confidence. Analysts forecast roughly 16% earnings growth in 2027.

And we think that's low. The S&P 500 trades around 20 times forward earnings, which is certainly not cheap, but the technology sector today is trading closer to 17 times, which is historically very cheap. If earnings expectations hold, these valuations could offer attractive entry points. The economy also continues to be resilient. October added 165,000 jobs versus expectations for 65,000.

Unemployment's at 4.1%, and the Atlanta Fed GDPNow estimates fourth-quarter GDP growth of 3.5%. Inflation is the key risk in the market today. Core prices have risen 0.3% for three consecutive months, which could keep interest rates elevated. Oil has fallen roughly $20 from the recent high, potentially providing some relief, although it takes time to reach consumers.

Meanwhile, more than half of investors report being bearish. Pessimism alone doesn’t signal a bottom, but it is a good contrarian buy indicator. Our approach is to stay disciplined and buy selectively during volatility. We focus on companies with strong earnings, durable competitive advantages and prices that offer attractive long-term potential.