The market can continue to run upwards from here, says Putnam’s Jackie Cavanaugh

Market Outlook - The market is believed to continue its upward trend due to a strong economy and consumer base, despite focus on the Federal Reserve [2] - Consumer sentiment is strong and accelerating, with healthy consumer and corporate credit [3] - Capital markets are experiencing a resurgence, expected to continue for multiple years [3] - While unemployment has slightly increased, it remains at historically low levels [3] - The AI boom continues to gain momentum, presenting opportunities for retail investors to focus on core competencies and specific stocks [4] - October is historically a volatile month, but the absence of substantial leverage in the system suggests that any pullback may be limited [4][5][6][8] - Earnings growth is accelerating, and market participation is broadening, indicating a constructive outlook [9] Investment Strategy - Putnam Investments focuses on individual stock selection rather than broad market plays [10] - Portfolio allocation is closely tied to the S&P 500 sectors [12] - Larger companies ("Goliaths") are seen as winners across various industries due to their scale, operating leverage, and ability to invest in AI [12][13] - Sectors of interest include Amazon, Walmart, Croup, and Co-Star (a commercial real estate data analytics company) [13][14] - The market is considered expensive, but compelling risk-reward opportunities exist at the individual stock level [14]