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Will the US stock market ride out a shift in Fed policy?

The cost of corporate equity is much lower than the cost of corporate debt in the US. This is very different to the situation that prevailed during the dot com bubble and is a reason to think that the stock market will not be especially rattled by the onset of less accommodative monetary policy. Our forecast remains that the S&P 500 will end next year at 1,900, slightly higher than its current level.

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