Raymond James Advises Caution Amid Market Cooling, Highlights Selective Opportunities
Markets are retreating from October's record highs despite the resolution of a six-week government shutdown. Initial relief gave way to renewed caution as investors question stretched valuations and the Federal Reserve's next moves. Raymond James CIO Larry Adam observes silver linings—cooling inflation, October's 25bps rate cut, and potential U.S.-China trade thaw—but warns of delicate conditions ahead.
"Valuations sit in the top 1% of the past twenty years," Adam notes, maintaining a defensive stance. He frames any pullback as a healthy correction within a bull market still supported by fundamentals. The analysis suggests disciplined stock-picking will be critical in this phase.