Ultimately, we believe the foundation that has served this bull market will once again move to the fore when this indigestion subsides. Supporting this are robust earnings with 2018 EPS projected to grow at 19 percent, valuations that are becoming increasingly more attractive at a 17x forward multiple, and the threat of a yield curve inversion muted for the bulk of 2018 at this time. Thus, the volatility that was effectively non-existent throughout 2017 should be viewed as an opportunity to increase equity exposure, in particular near lower price levels of this developing support/resistance channel as mentioned above.
Jeffrey D. Saut is chief investment strategist at Raymond James.