Excellent market to own stocks despite stretched multiples, says Treasury Partners' Rich Saperstein

Market Overview - The current market environment is favorable for holding stocks, with equities at record highs and a bullish outlook on large-cap technology investments [1][2] - Moderating inflation, an accommodating Federal Reserve, and strong Q2 GDP and earnings are contributing to a positive investment climate [2] Investment Strategy - Clients are fully invested with an overweight in large-cap technology, while also holding municipal bonds for diversification [2][3] - There is a need to periodically rebalance portfolios by selling stocks to reallocate into bonds as stock holdings grow [3] Sector Focus - Technology remains a long-term focus, with specific emphasis on companies like Oracle and independent power producers that support data center growth [4][5] - The electrification of the country and the demand for utilities are critical, with companies like Vistra and NRG generating strong operating cash flows [6][7] Company Insights - IBM is highlighted as a key player in AI infrastructure, with 35% of its revenue being recurring and a total revenue of $64 billion [9] - Despite a recent 20% decline in stock price, IBM is considered a sleeper investment due to its role in data center growth [10] Risk Factors - Potential risks include unexpected inflation or geopolitical trade tensions, but current earnings growth and cash flow remain strong [12][14]