Markets ‘Priced for Perfection' — How to Invest at Highs

• Markets are 'priced for perfection' but justified by solid Q1 earnings, particularly in financials and industrials.
• Key risks include the Middle East conflict (potential for higher costs, stickier inflation) and the impact of AI on employment.
• Schleif recommends an overweight position in equities with a growth bias, favoring North American and certain emerging markets.
• The S&P 500 is projected to reach around 7700 by year-end, driven by double-digit earnings growth and a broadening market rally.
• Investors are advised to dollar-cost average and rebalance portfolios regularly, as markets tend to climb a 'wall of worry'.

BMO Chief Market Strategist Carol Schleif discusses the current market rally, noting strong fundamentals and Q1 earnings, which justify current all-time highs. She advises investors to maintain a growth bias in equities, dollar-cost average, and periodically rebalance, despite potential tail risks like geopolitical conflicts and sticky inflation.