Let's talk about all of this with Emily Roland. She is co-chief investment strategist at Manu Life. John Hancock Investments.Sorry about your Red Sox. I know it was tough. It's tough.All right. Um Emily, outside of baseball, it's one historical stat. Okay.But I like it. It's better than it markets usually fall 7.7%. Is the direction of this market up.I mean, Brian, nothing can stop this market right now. It's all been about momentum. It's been about technicals. It's been about embracing the pocks of the mar ...

Inflation and Economic Growth - The data suggests that inflation is not a major concern, with the bigger problem being a lack of real growth [2] - Real GDP growth in the first half of the year is slightly less than 1% annualized, and job creation is up 60 basis points annualized [3] - Current inflation is running at 2.5% to 3% [3] Federal Reserve (Fed) Policy - A Fed rate cut is anticipated, with the expectation that the Fed will choose to ease next month [3] - The market has been narrow in this bull market because the Fed has been tightening [7] - If the Fed cuts the funds rate, long-term bond yields and mortgage rates could decrease, the dollar could weaken, and the money supply could increase, all of which are positive for stocks and the economy [9] - A Fed rate cut could be a game-changer, potentially initiating a new bull market [10] Market Outlook and Investment Strategies - Small caps and midcaps offer a very attractive relative PE discount, trading at more than 30% discounts to their average 20-year relative PE with the S&P 500 [12][13] - Historically, 12 months after the Fed starts cutting interest rates, large caps gain less than 4%, while small caps are up about 3%, indicating significant room for small caps to move [13] - If the Fed eases, leadership may broaden out to small caps, international value plays [11]

Market Analysis and Investment Strategy - Historically, value stocks outperformed growth stocks, and small-cap stocks outperformed large-cap stocks until the 2008 financial crisis [2] - The S&P 500 is no longer a broad-based market index, with the top 10 stocks accounting for 40% of the weight and the top 250 stocks accounting for 90% [4] - There are signs of euphoria in the market, with the cyclically adjusted price-to-earnings ratio higher than it has been 98% of the time, approaching tech bubble peak [4][5] - Younger investors are following momentum strategies, piling into what's working and driving it higher [6] - Despite concerns about overvaluation, the market can continue to rally even after warnings of irrational exuberance [7] Tariff Impact - Smaller companies generate most of their revenues within the United States but are still exposed to tariffs through reliance on foreign manufacturers [9] - Larger companies may be better equipped to handle tariffs by absorbing costs or passing them on through price adjustments [10] Stock Recommendation - Grant Wealth Management likes Verizon, a large-cap value stock that pays a generous dividend and has been increasing it every year for the past 18 years [11][12] - Verizon has 40 times the revenue of Palantir and sells for nine times earnings, while Palantir sells for 285 times earnings [14] - It makes sense to pay for growth, but there is a point where it no longer makes sense, making Verizon a more attractive option [13][14]