Investors should have exposure to both secular and cyclical themes in markets, says Mona Mahajan

Market Overview - Stock index futures are steady, slightly above the flat line after modest losses in the S&P 500 [1] - The market has navigated through traditionally weak months of August and September, supported by the AI theme and a weaker job market [2] Economic Indicators - The Federal Reserve is expected to cut rates due to soft labor indicators, which may support cyclical parts of the market over the next 12 months [4][7] - Earnings growth for the third quarter is projected at 8% year-on-year, with full-year growth expected to be in double digits, primarily driven by technology and AI sectors [5] Investment Themes - There is a unique investment environment characterized by both secular themes of AI and technology and cyclical themes [4] - Large-cap and mid-cap stocks are favored, with large caps reflecting AI technology and mid-caps indicating cyclical expansion [8] AI Market Sentiment - The debate exists regarding whether the current AI trend resembles a dangerous bubble or a more stable growth phase [9][10] - The AI theme is believed to have a long runway, starting with data center infrastructure and semiconductors, and expanding into other sectors benefiting from AI productivity gains [11] Gold as an Investment - Gold is gaining favor as a diversifier in portfolios, driven by central bank purchases and a weakening dollar [12][13] - Exposure to gold may be achieved through gold mining stocks, particularly in regions like Canada, which has a significant gold mining sector [14]