"Defense sentiment is at one of the lowest levels in the last ten years"

1. Mortgage demand. "Very, very few households we just surveyed are interested in buying a home at 7.5% mortgage rates. Only time will tell if/when this housing logjam starts to break."

2. Inflation expectations. Consumers' expectations for year-ahead inflation rose to 3.9% in September, the highest in over 3 years.

3. Sector Sentiment Spread. "Defense sentiment is at one of the lowest levels in the last ten years. However, this alone isn't a great barometer for a mean reversion shift in Offense vs. Defense."

4. Hedge funds vs. Mag 7. "Net exposure on our prime book to Mag7 as a % of Total US exposure is near 22%, which is the highest on record since the start of 2022."

5. October ATHs. "S&P 500 closing at new all-time highs in October has historically been a bullish signal for the remainder of the year. Since 1950 when S&P 500 posts at least one new closing all-time high during October, the fourth quarter averages a 4.74% gain, compared to just 3.99% in all other years."

ICYMI