President Trump won't disrupt the bull market, strategist says

Market Sentiment - Investors are closely monitoring US-China trade tensions, but some analysts believe the latest standoff will not disrupt market momentum, emphasizing the importance of focusing on economic cycles rather than headlines [1][2][5] - The fundamentals of the economy are seen as a tailwind for equities, with a diminished impact from tariff headlines observed recently [3][5] Economic Indicators - Earnings estimates for small-cap companies are at a two-and-a-half-year high, indicating a broad-based improvement in earnings that has been lacking for the past three years [6][7] - Mortgage rates are at their lowest in a long time, which is expected to lead to better housing data and manufacturing activity by 2026 [8] Federal Reserve Outlook - There is skepticism regarding the impact of the government shutdown on the Federal Reserve's decision-making, with the belief that the Fed will act based on available data rather than waiting for government data [9][10][12] - The Fed is expected to cut rates again in October, despite concerns about the absence of hard data due to the government shutdown [12] AI Sector - The partnership between OpenAI and Broadcom to develop custom AI chips is viewed as part of an AI boom rather than a bubble, with strong earnings driving market performance rather than speculative valuations [13][14][15] Investment Opportunities - Rising unemployment is considered a bullish catalyst for equities, with recommendations for early cyclicals and sectors like financials, banks, and homebuilders, which are expected to perform well in a low-rate environment [19][20] - There is an expectation of a broadening market into 2026, with potential for underperforming sectors to see relative performance improvements [21]