A lot of market strength this quarter, keeping people employed is imperative for Q4: BMO's Schleif

Market Overview - The Federal Reserve's recent decision to raise interest rates by a quarter point was largely anticipated, leading to a calm market reaction [1][2] - There is hope for future meetings to maintain a similar level of communication and stability, reducing the Fed's influence on market discussions [2] Earnings and Fundamentals - Earnings and fundamentals have underpinned market behavior throughout the year, with expectations for strong performance in the upcoming earnings season [4][5] - The Fed's role will still be relevant in discussions about the broader economy, particularly regarding employment and earnings [5] Fixed Income - Fixed income is regaining its role in portfolios as it now generates income, contrasting with previous periods where investors were effectively paying to hold cash [6][7] - Investment-grade corporate bonds have seen a good performance this year, with expectations for continued strength assuming no major economic challenges [8] Sector Preferences - The technology and communications sectors are favored, with particular interest in industrials due to infrastructure developments related to AI and data centers [8][9] - Utilities are being viewed as a growth story for the first time, indicating a shift in investment focus [10] Small and Mid-Cap Stocks - Small caps have recently started to perform better, primarily in anticipation of a Fed cutting cycle, but face challenges due to higher leverage and tariff impacts [12] - Active management is deemed necessary for small and mid-cap stocks to navigate potential difficulties in sustaining long-term growth [12] Company Insights - Oracle's significant stock movement raises questions about valuation, but highlights the potential for productivity gains driven by AI and cost efficiencies [14][15]