Markets (^DJI, ^IXIC, ^GSPC) reached record highs in September, defying usual trends of weakness. RBC Capital Markets Head of US Equity Strategy Lori Calvasina joins Market Domination Overtime to discuss her market outlook amid current dynamics.

Calvasina believes the market is currently valued above where "it deserves to be" for 2024. She suggests that investment decisions should be based on individual investors' "time horizon." With this in mind, she gives a "conservative outlook" for 2025 of 6200 on earnings, adding, "It would not surprise me at all to see this rally take a little bit of a breather."

However, Calvasina outlines several challenges markets must overcome. These include getting out of the current "economic pothole," the intense focus on the labor market and unemployment numbers, and "working through some of those doubts" regarding uncertainties such as the upcoming US election and the ongoing rate-cutting cycle.

"There's nothing wrong with sitting here saying look, there's usually some angst in the market when the Fed does start to cut. We're living through that angst right now," she told Yahoo Finance.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Angel Smith