Stephanie Link: The word of the day is seasonality

Market Overview & Economic Outlook - Senate discussions suggest a potential deal to end the government shutdown, which could alleviate concerns about inflation and valuations [1] - The fourth quarter historically shows strong seasonality, with an average cumulative increase of 85% over the past 50 years [2] - The economy remains strong, with GDP estimates for the current quarter continuing to be robust [4] - There is $7 trillion of cash on the sidelines, which could act as a tailwind for the market [6] Sector & Investment Strategy - Recommends adding exposure to financials, energy, industrials, technology, and discretionary sectors due to a sound economy and strong earnings growth [3] - Earnings growth is running up 125% and revenues are up about 8% [3] - Suggests buying pullbacks, especially in stocks that have declined with the broader market, particularly if earnings numbers are increasing [3] - Encouraged by the broadening out of market participation, suggesting owning tech and other sectors expected to outperform [5][6] - Prefers owning more cyclical companies on the large-cap side rather than midcaps and small caps [6] Company Specific Insights - Cisco's broad global exposure makes it an interesting company to watch for insights into the overall global economy [8] - Starbucks is highlighted as a pick, believing the turnaround is happening faster than expected, with the first positive same-store sales figure in 2 years [10][11] - Starbucks' stock rallied 49% when Brian Nickel was announced as the new CEO, a position he previously held at Chipotle where the stock increased over 700% [10][11]