Investors should be owning things beyond tech, says Hightower's Stephanie Link

Economic Indicators - The Atlanta Fed tracker indicates a GDP growth rate of approximately 3.9% for Q3, following a 3.8% growth in Q2, suggesting a strong economic performance [2] - Weekly jobless claims decreased to 218,000, with a four-week moving average of about 230,000, indicating a healthy labor market [2][16] - Durable goods orders rose by 5.4% year-over-year, driven by Boeing, while new home sales increased by 20% month-over-month and 15% year-over-year, reflecting robust consumer activity [3] Market Outlook - The earnings outlook for the next quarter is positive, with expectations of broad-based growth across various sectors, including housing and financials [4][6] - Financials are expected to perform well, with Morgan Stanley raising targets for large-cap banks due to favorable numbers [7] - The industrial sector and data center investments are anticipated to continue thriving, supported by strong visibility [8] Investment Strategies - Investors are encouraged to diversify beyond technology stocks, with a focus on sectors like housing and autos, which may benefit from lower interest rates [6][7] - Capital One is highlighted as a favorable investment due to its recent acquisition of Discover Financial, which enhances its scalable payments network [9] - Cybersecurity is identified as a growing sector, with potential for consolidation among the 4,000 companies in the field, driven by increasing demand for AI-related security solutions [11][12] Consumer Behavior - The consumer remains resilient, supported by job stability and wage growth of about 5%, despite inflationary pressures [18] - A significant amount of capital, approximately $8 trillion, is currently in money markets, which may shift into equities as interest rates decline [14][15] Risks and Concerns - The labor market is closely monitored, with a warning threshold set at 250,000 to 260,000 weekly jobless claims, as a significant increase could signal economic trouble [16][17] - Potential government shutdowns are not seen as a major concern, with expectations that any issues will be resolved quickly [19][20]