Sawgrass Market Musings

Renewed Focus on Fundamentals

Advisors Asset Management, Inc.

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0:00 | 4:08

Anthony Brooks, Portfolio Manager, discusses the market's resilience in 2025, with stock prices supported by optimism around potential rate cuts and steady earnings, despite uncertainties around circular AI deals, geopolitical tensions, and political shifts. By year-end, more than 80% of S&P 500 companies beat earnings expectations, as real earnings growth rather than expanding valuations supported the majority of the year's gain. We expect investors' renewed focus on fundamentals to continue into 2026, creating significant potential for high quality stocks trading at below average valuations.