We are still 'constructive' on equities, says Piper Sandler's Michael Kantrowitz

Group 1 - The investment strategy remains constructive on equities despite concerns over AI overinvestment and weaker job growth, supported by macro data and earnings breadth [2][4] - A significant market rotation has been observed since October, marking the first broadening in four years, driven by improved macroeconomic indicators [2][4] - The recent soft jobs data has contributed to favorable conditions for the market, as it has led to rate cuts by the Fed and lower mortgage rates, which are seen as beneficial for a soft landing [5][6] Group 2 - Expectations for continued soft jobs data are anticipated, which may not lead to a sharp deterioration in employment, aligning with the bullish narrative of the past couple of years [6][7] - Early cyclical macro data has shown improvement, with notable PMI data in January indicating the best performance in four years, suggesting potential job market recovery later this year [7][8]