let's bring in bloomberg intelligence chief equity --ategist jason martin adams gina martin adams. gina, if that had been your contention, how do you add in the death of justice ruth bader ginsburg and how that will play out in the coming weeks and months into this market? gina: i think we already have a market that is pretty nervous about what is going on in washington with respect to the upcoming election -- upcoming election. ago, we wereonth really pricing volatility to become more minimal once the election comes through. our view is that 2020 is going to remain somewhat volatile probably through to the end. 2021,we start to see come but once stocks reach their peak, you historically see gains slow. come and of august, we were due for rotation -- come and of august, we were due for rotation. washington. out of obviously this financial sector probe is adding to some nervousness on the part of the investment community. the thing you want to focus on is how broad is the decline. we are seeing some breath deterioration -- breath deterioration today, but prior, the s&p 500 was only

gina martin adams rationalizes her approach. bloomberg intelligence and chief equity strategist. gina, a correction down 10% is down 26,000. a bear market down 18%, collette dowd 24,000 as well. we are nowhere near that. how have we lost where the real correction is? gina: that is a really good question. i do think that when you have these extraordinarily volatile moves in stocks, it does create a degree of fear, and we have had actually extraordinary voluntarily this year. to see a 4% to 5% correction, depending on which market you follow in a day is extremely rare, in particular in the mid of an uptrend. ofwe have experienced a lot volatility in 2020. i think over the longer-term, we have lost sense of what a correction is, mostly because the stock market has pre-much gone straight higher for 10 years straight, meaning go back have10, and although we had a decent amount of volatility of several significant corrections, 50% to 20% even, in general, the market performance has surprised most of the consensus. there is this bearish

right now, gina martin adams on this market, with futures up 20. more earlier, but still a nice move to stability after what we saw yesterday. what will you write about this morning? gina: we wrote a lot about index valuations. we think the correction we've had over the last couple of weeks is really just been about bubble,g a mini tech not a broad s&p 500 selloff area i think this nuance is pretty important to assessing where the market goes from here because andkly, the party stopped stopped500 balance rising in june, but nobody told the tech sector. we probably need to continue to see that to close the gap with the rest of the market. it is going to create a pretty choppy market over the next month or so. frankly, the rest of the s&p 500 is not expensive. it is actually cheap by historical standards. we've got 90% of the index trading with earnings yield above midgrade. we've got more than half of the index trading below average price-to-book multiples. we started to dig into valuations and really assess the outlook. jonathan: you do a tremendous

let's get to our chief equity strategist, gina -- gina martin adams.ially, the fed just the needle. yesterday, we pondered the potency of central banks to keep delivering upside surprises to support this market. is that essentially what we saw? it was not a watershed moment, and therefore we saw the reaction or lack of reaction in markets? gina: i think that is certainly part of the story. we did see some intrigue and reaction at the sector level. we did see really strong rotation into value plays and particularly, financials and energy and out of technology stocks and this is something we have seen a little rotation beginning in the equity market in the u.s. and globally over the course of the last month, into more inflation plays. financials, energy, industrials, materials. these are all sectors that tend to do a little better in an inflationary environment, in an environment in which you see a cyclical recovery start to emerge, and out of some of the more defensive covid-19 sort of winning sectors like technology and health care, but especially tech