Speaker · Updated
Meghan Shue: latest market views
Wilmington Trust
Summary
Meghan Shue is chief investment strategist at Wilmington Trust, where she leads asset allocation and portfolio construction, and is a regular CNBC contributor.
Chorus has 10 views from Meghan Shue across 2 episodes on CNBC Closing Bell since October 27, 2026.
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The latest views
Newest first. Every quote is checked against the episode's transcript.
AI infrastructure & data centers
A slowdown in AI build-out would be healthy, reducing supply-chain shocks, if not a termination of it.
Shue has argued that rolling waves of pessimism are good for the longevity of the market. A potential slowdown in the AI build-out could be healthy as long as it is a deliberate slowing rather than a termination, which she does not think is the case. A more deliberate build-out could mean fewer supply-chain shocks along the way.
“we're talking about a potential slowdown in the AI build out. I've actually been on here talking about these rolling waves of pessimism being a good thing for the longevity of the market... as long as we are slowing, maybe being a little bit more deliberate about the build out and not terminating it, which I don't think is the case, it could make for a healthier environment, maybe fewer supply chain shocks along the way.”at 43:02
Over the next twelve months, the overall AI investment story remains intact despite the pullback.
Shue is buy-rated on the market for investors willing to look out over the next twelve months. She thinks the overall AI story remains intact even as AI spending concerns and oil and Fed risks dominate near-term trading. Earnings support the view, with energy and tech strength alongside the rest of the market.
“if you are willing to look out over the next twelve months, I think the overall AI story remains intact.”at 44:04
Earnings are strong beyond energy and tech, with the rest of the market at about double-digit growth.
Shue points to earnings support from energy and tech, and also from the rest of the market, which she puts at about double-digit earnings growth. She calls that very solid and says it gives the market some strength into the end of the year and a solid start to 2027.
“I think the earnings are there not only from energy and tech, obviously, but also from the rest of the market at about double digit earnings growth.”at 44:14
Inflation is not a major problem and the Fed won't hike further; it could cut in 2027.
Shue's team thinks inflation is not much of a problem, and the economy is not as hot as it looks on the surface. That means the Fed is not going to need to hike rates more, contrary to the market's view. She argues the Fed could actually be cutting in 2027. This is why she likes cyclicals and small caps, since they are tied to oil and Fed policy.
“We actually have a view that the inflation is really not that much of a problem. The economy is probably not quite as hot as it looks on the surface, and the Fed is not going to need to hike rates more. I know that's not the market's view, but could actually be cutting in 2027.”at 45:07
Favors cyclicals and small caps, especially quality names, as the market rotates toward quality.
Because she expects inflation to be contained and the Fed to possibly cut in 2027, Shue likes cyclicals, with small caps in particular. Within small caps she favors the quality stack. She sees a broader quality rotation across the market, including within tech. She also sees potential for a rebound from oil acting as a market stimulus in 2027.
“So that does put us in a position of liking cyclicals, small cap, in particular. I would stay up on the quality stack within small cap, and with the market at large.”at 45:17
Constructive on US equities and overweight; sees the correction nearing its end with internals improving.
Shue says her team is generally constructive and overweight equities. She points to market internals: on tough down days in the headline index, capital rotates into other parts of the market rather than out of stocks, which she calls constructive. Treasuries resuming their safe-haven role and a dovish Fed view support this. She agrees the tech correction that began around June is probably nearing its end.
“I think we're we're generally pretty constructive on the market. We're overweight to equities. ... when the headline index is down, capital rolling and rotating into other parts of the market rather than out of the market, I think that's constructive.”at 43:51
Expects the Fed to deliver two to three rate cuts over the next twelve months, not hikes; bullish for small caps.
Shue says Treasuries have resumed their role as a safe haven, which she views as constructive for the market. Her team holds a pretty dovish view on the Fed over the next twelve months, expecting two to three rate cuts rather than hikes. She says that would be very bullish, particularly for small caps.
“we have a pretty dovish view on the Fed over the next twelve months, expecting two to three rate cuts rather than rate hikes. So that would be very bullish, particularly for small cap.”at 44:18
Earnings are driving the market and outgrowing the index; watch whether negative estimate revisions start rolling over.
Shue says earnings have continued to be the engine for the market, with earnings growth outpacing the overall index. The key thing to watch is whether negative earnings revisions stop rolling over. If they do not, that could signal that valuations are artificially low.
“earnings have continued to be the engine for the market, outgrowing the overall index. I think the thing here to watch is negative earnings revisions that they don't start to roll over. That could signal that valuations are maybe artificially low.”at 44:36
Market sentiment, positioning & volatility
The bull market is unloved due to recurring AI scares; the skepticism is healthy and prevents euphoria.
Shue says the bull market has been unloved because every few months there is a scare about AI: hyperscalers overspending, being too highly levered, or productivity not materializing. Her reading of market data and investor conversations shows heavy skepticism. She thinks this is healthy because it takes air out of the balloon and keeps the market from reaching euphoria, and she sees the lack of euphoria as encouraging.
“I think this is actually healthy because what it tends to do is it takes... It tends to take some of the air out of the balloon along the way so that we don't get into this state of euphoria.”at 45:22
Underweight tech and industrials; overweight communication services, consumer discretionary and real estate, favouring pricing power.
Shue's team moved to a slight underweight on tech back in the spring, when memory stocks were ripping, and held steady rather than chasing them. They like communication services and other parts of the market participating in the AI trade, including consumer discretionary and real estate. Their approach is to pick companies that are both exposed to the AI trade and diversified, with strong pricing power.
“So what we moved to just a slight underweight on tech back in... Basically back in the spring... moved to an underweight, but we do like communication services. We like some of those other parts... including in consumer discretionary and real estate.”at 46:13
Shows
- CNBC Closing Bell · 2 episodes
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