Key Takeaways

• Headline risks around peak everything overlook rolling stock corrections in large swaths of the market and bearish investor sentiment, factors likely to soften the current drawdown.

• The future for equities may not be as gloomy as peak monetary policy suggests due to a change in how the Fed approaches inflation and the likelihood of new leadership that could make the central bank even more dovish.

• Despite a near-term drag on growth from the Delta variant, the ClearBridge Recession Risk Dashboard remains firmly in expansionary territory and the economy ...