Stocks Are in a 'Junk Rally,' Says Manulife's Roland

Core Viewpoint - The current market is experiencing a rally driven by momentum and sentiment, particularly in unprofitable stocks, meme stocks, and crypto-related assets, which are viewed as lower quality investments [1] Group 1: Investment Strategy - The company is focusing on allocating resources to higher quality stocks while remaining fully invested, avoiding being the lead in market trends [2] - There is an emphasis on investing in high-quality stocks that are generating earnings, as the earnings engine in the United States remains active [3] Group 2: Sector Focus - The company is overweight in the technology sector, which is considered one of the highest quality parts of the market based on return on equity metrics [5] - Attractive opportunities are identified in communication services, technology, industrials, and utilities, particularly as these sectors benefit from advancements in AI [6] Group 3: Market Relationships - There is a symbiotic relationship between technology earnings and financial sector performance, especially in wealth management, indicating that strong tech performance is positively impacting the broader economy [6][7]