Buy Now or Wait? What To Do As Stocks Hit Record Highs

• The economy is growing at trend job growth, with no 'red alarms' in macro data, supporting solid earnings despite expected choppiness.
• Recommends waiting for pullbacks (5-10%) to add new money, especially in sectors left behind, and using hedging for downside protection.
• High conviction in financials due to a healthy macro backdrop and potential AI benefits, and sees tailwinds for industrials.
• Cautions against chasing momentum in tech, particularly in crowded semiconductor trades, and advises caution in energy and consumer sectors due to potential sluggish earnings.

Sonali Basak, Chief Investment Strategist at iCapital, believes the bull market is alive and well, expecting the S&P 500 to hold double-digit gains despite anticipating a choppy Q4. She advises waiting for pullbacks (5-10%) to deploy new capital, favoring financials and industrials, and selectively tech hyper-scalers, while cautioning against energy and consumer sectors.