What could go right

As the dust settles from recent market turbulence, investors and strategists find themselves in a more bearish stance, reflecting on uncertainties like tax legislation and trade deals. However, opportunities lie in the potential passage of supportive tax reforms that could stimulate growth and reduce deficits contrary to current fears.

With tariff tensions easing and inflation showing signs of moderation, economic conditions may become more favorable than anticipated. A re-acceleration in GDP growth is possible if pending policies are enacted successfully, which could bolster corporate earnings further.

As these factors unfold positively, markets may rise towards optimistic targets by year-end despite prevailing cautious sentiments.