Dow, S&P 500 soar, Nasdaq rebounds in best day since November to cap volatile week

In a new note to clients published Friday, BMO chief investment strategist Brian Belski — one of the Street’s staunchest bulls who was quick to call the market turnaround back in 2022 — argues that the uncertainty and fear of this market moment is no reason to rip up your view on markets and the economy.

“Given the increased negative banter and many macro forecasts being revised to the downside, we have been inundated by clients on not only our opinion, but more directly — why we are NOT changing our view,” Belski wrote.

In addition to not knowing the process of other firms and arguing that company-specific trends are being extrapolated to the broad market, Belski added: “Unfortunately, uncertainty generates emotion, which comes from fear. … To be blunt, we believe it is inappropriate to be changing forecasts for the sake of uncertainty and fear.”

On Thursday, the S&P 500 (^GSPC) entered correction territory, defined as a 10% drop from recent highs.

“We know that corrections do not necessarily equate to bear markets,” Belski added.

More broadly, Belski sees the way the market has acted over the last two years — essentially going up unabated amid AI enthusiasm and riding the wave of a strong economy — as having set us up for the current moment of instability.

Here’s Belski, with the money quote on where things stand in his team’s mind as we head toward the end of a rough week for markets: