Stifel CEO Sees Potential Market Pullback as Healthy Correction

Stifel Chairman and CEO Ron Kruszewski believes there is a chance of a market pullback, calling the current market "priced to perfection." He thinks a pullback would be healthy, but did not provide a timeline for when it might occur. Kruszewski spoke with Scarlet Fu on "Bloomberg Markets."

Stifel Financial Corp. Chairman and CEO Ron Kruszewski has expressed his belief in the potential for a market pullback, describing the current market as "priced to perfection." He shared these insights during a recent interview with Scarlet Fu on "Bloomberg Markets." Kruszewski did not provide a specific timeline for when such a pullback might occur but emphasized that it could be a healthy correction.

In addition to his market outlook, Kruszewski discussed the current state of the IPO market. He noted that smaller investment banks are bullish about the flow of initial public offerings (IPOs) for the rest of the year. Executives at Evercore Inc. and Stifel Financial Corp. are optimistic that lesser volatility, coupled with the White House's agenda to ease regulations, could spur more activity.

Evercore Inc. reported a 4% year-over-year jump in its equity and debt underwriting fees to $32.2 million, with a significant increase in activity in May and June. Stifel Financial Corp., meanwhile, saw a 3.7% decrease in equity-capital raising revenues to $46.2 million due to lower volumes but remains optimistic about the second half of the year. During the second quarter, Stifel acted as a bookrunner on several IPOs, including those of Smartstop Self Storage REIT, Etoro Group Ltd., and Hinge Health.

Executives from larger institutions, such as Morgan Stanley and Goldman Sachs, also echoed a positive outlook for IPOs, noting that companies were able to freely access the market despite some slowdowns in April and May. Raymond James Financial Inc. reported a 15% year-over-year increase in equity underwriting revenue and expressed a more positive market sentiment compared to early April.

In conclusion, while Kruszewski's market outlook suggests a potential pullback, the IPO market appears to be on the rebound, with executives from various investment banks expressing optimism for the rest of the year.

References:
[1] https://www.investing.com/news/analyst-ratings/stifel-raises-ftai-aviation-stock-price-target-to-147-on-pma-approval-outlook-93CH-4160950
[2] https://www.bloomberg.com/news/articles/2025-07-30/small-banks-are-upbeat-about-ipos-rebounding-for-rest-of-2025