I am taking a more long-term look at where I see the index and at what prices I think would be too good an opportunity to pass up given the future interest rate hikes and unknowns with regards to oil prices & supply chains.
I personally feel the 325-350 range represents a good outlook on the economy overall. It would represent an acknowledgement of the problems caused by the pandemic and its related fallout. It is a humbling but optimistic figure. I think it is very reasonable to expect buyers to support this valuation and it is a good place to look for long opportunities.
The 297-266 range represents an increasing amount of pessimism. I think it will take at least 3 negative quarters of GDP maybe 4 for us to enter this range. I would look to this range depending on how earnings reports look in the coming months.
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