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This market is still a buy, says MJP Wealth's Brian Vendig
11/5/2025, 9:15:14 PM
Economic Summary
- Earnings remain the primary market driver: analysts see a 13% year-over-year EPS growth outlook for 2026, which supports continued equity demand.
- A shift toward mid-cap and small-cap names is argued due to their higher earnings growth potential and less concentration versus mega-cap tech.
- Value and cyclical sectors could outperform if the government reopens and tax policy or a more neutral Fed stance favor broader economic participation.
- The government shutdown is causing measurable weekly economic friction and delays, but the guest expects a resolution within a few weeks (first half of November), which would relieve near-term drag.
Bullish
- Market still a buy given earnings beating expectations
- 13% EPS growth outlook for 2026 supports equity upside
- Mid- and small-caps offer meaningful earnings growth potential outside mega-cap tech
- Value and cyclicals may benefit if government reopens and Fed moves neutral
Bearish
- Valuation concerns could limit upside
- Market crowding in mega-cap tech increases concentration risk
- Ongoing government shutdown could inflict weekly economic losses
- Some investors prefer sticking to large-cap AI names instead of mid/small-caps
People mentioned
Brian BendigScott