HSBC chief multi-asset strategist Max Kettner warns equities could pull back as
market sentiment overheats, fiscal stimulus wanes and uncertainty ahead of the
US midterms rises. He recommends modestly trimming equity exposure after the
current earnings season. Kettner, who has maintained his top Overweight since
mid-March, says positioning and sentiment are near 2021 reopening levels and
some US credit-card data show consumer spending is slowing. He adds a recent
major fiscal package provides stimulus comparable to 2009 but is concentrated in
1H 2026, leaving limited near-term incremental support. Polling shows the Senate
race is a toss-up, raising regulatory uncertainty around AI and data-center
policy; that risk could weigh on the entire tech sector, not just semiconductors
and hyperscalers. He views any pullback as a buying opportunity.
