The ECB should ensure inflation and economic growth don’t disappoint by lowering rates again in December, Lithuania's Gediminas Simkus says https://t.co/DL5g9EYzXr ...

- If you talk to anyone long enough about the UK, two things usually come up-- football and London. When Tom Wagner was looking for an investment opportunity, he wanted both. In the end, he got one.- It's an interesting story because our adventures in English football actually began with us looking at a London-based Premier League club. It was a great opportunity, and shortly after passing on the opportunity in London, the opportunity to invest in Birmingham City was presented to us, and it proved to be too ...

Market Overview - The market experienced a strong week, particularly for small-cap stocks, with the Russell 2000 hitting a new record high [1] - The Federal Reserve's interest rate cut of a quarter point provided a boost to the market [1] - Earnings remain strong, suggesting a potential "Goldilocks" economy [1] Investment Strategy - Citigroup recommends a barbell strategy, favoring growth with a cyclical bias [3] - As the Fed eases further, a shift towards small and mid-cap stocks (SMID) is suggested, anticipating an earnings recovery into 2026 due to Fed stimulus [4] - Pullbacks should be aggressively bought into, expecting a strong finish to the year [8] Earnings Analysis - Earnings growth is broadening beyond AI-related companies, with evidence seen in Q2 and expected to continue in Q3 [5] - The S&P 500's capitalization is roughly split, with half attributable to AI-related companies and the other half to economic-sensitive and defensive sectors [6] - Expectations for Q3 earnings are high, requiring strong performance to meet the raised bar [8] S&P 500 Outlook - Citigroup has reached its initial year-end target of 6,600 for the S&P 500 and has a "Super Bowl case" target of 7,200 [8] - Achieving the 7,200 target requires 2026 earnings estimates to increase beyond Citigroup's current estimate of $38 per share for the S&P 500 [9] - The S&P 500's fundamental backdrop is structurally in good shape [11]

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]

Market Trends & Economic Outlook - The market may see a similar situation to a year ago with potential for rising inflation and two-year Treasury yields around 35%, possibly moving higher [1] - Economic growth alongside rising inflation isn't necessarily negative [1] - Small caps are potentially underowned, with futures short on Russell, suggesting lower rates could benefit them [1] Investment Strategies & Portfolio Allocation - The firm suggests not being long bonds and considering a lower bond allocation, with alternatives like gold for balance [1] - Diversification is crucial, with potential opportunities in international markets (e g, China) and small caps [1] - Consider diversifying from the "Magnificent Seven" (Mag 7) due to their concentrated exposure [1] Individual Stock Picks & Sector Focus - Axon, a maker of body cams and tasers, is highlighted as a potentially good investment with 30% type growth [1] - AI is a significant theme for the next 3-5 years, but diversification beyond chip manufacturers is recommended, including data centers, cooling systems, and energy companies [1][2] Valuation & Risk Management - Overconcentration in a few AI chip names carries significant risk [2] - The traditional valuation game may not always work, as seen with Nvidia and Broadcom, where earnings eventually justified high valuations [1] - Stocks hitting highs often continue to make new highs, while stocks hitting lows can potentially go to zero [1]

Greek and Spanish output—both of which contracted sharply in the early 2010s—last year grew by 2.3% and 3.2%, respectively. By contrast, Britain, France and Germany stagnated https://t.co/YH9LCCFeFu ...

RT apewood (@apewoodx)growth? good (retail sales, manufacturing this morning, gdp revised up. jobless claims lower today suggesting bottom is in on the labor market weakness and recession mongers are again wrong). most importantly still a lot of spending on ai which has been the primary driver of the markets over the past year ish (while most want to focus on rate cuts, this has been the main piece)fiscal? yep still spendingmonetary? cutting and seems like the fed has basically no conviction on what they sh ...

The latest dot plot highlighting the growing division among FOMC members with one member seeing the Fed hiking rates this year. Another who we can probably guess seeing cuts of one and a quarter% over the next two meetings. Joining me now, Muhammad Alerian, Queens College Cambridge president. It's so good to have you here with us in the studio. Muhammad and so I noticed you retweet a comment from Jim Biano, another longtime Fed watcher and investor. and he basically said this meeting was a mess of this late ...

The case for easier money depends almost entirely on the labour market. The trouble is judging how much poor jobs numbers—and an accompanying slowdown in economic growth—reflect softer demand for workers rather than their shrinking supply https://t.co/uaahZ0kJMj ...

Next warns that sales will slow in the second half of the year, as the retailer forecast that the UK economy is set for sluggish growth https://t.co/exGiiBcXDM ...