We start off with that big call from the Treasury Secretary in an interview this morning. Scott Besson telling Bloomberg that the Fed should cut rates by 50 basis points next month and that ultimately rates should be 150 to 175 basis points lower than they are right now. That got us wondering what would that mean for the markets.Starting with stocks, the S&P and NASDAQ hitting records today, but it was the long underperforming small cap Russell 2000 that saw the biggest gains. Do out of favor groups and sec ...

the Mega Cap winners, but are outside the sector. Joining me now is Michael Kantrowitz, chief investment strategist at Piper Sandler. Michael, welcome.Give me your best ideas. Good afternoon. Yeah.>> Good afternoon. Yeah. >> So the tech sector is obviously done great.But very few investment managers can only own the tech sector, even if it is the best performing area. So we've been focused on really the last couple of years as tech has been leading, trying to highlight stocks outside of the tech sector or i ...

Will a rate cut in September be enough to keep this rally going. Let's bring in Pollson Perspectives author Jim Pollson and CFR research chief investment strategist Sam Stovall. Guys, welcome.Jim, you say these numbers tell us inflation isn't so much of a problem. We were just asking a guest earlier about pressure on the workingclass consumer, though. Is a Fed rate cut still a gamecher if we see more signs of pressure through the rest of the year.Well, I I think you know certainly you can make a case that i ...

For more on where stocks are heading from here, let's welcome in Warren Pies. He's the co-founder of 314 Research. Good to see you. >> Good to be here.>> You downgraded equities in July. >> That's correct. >> Yeah.I mean to be uh to give us a little bit of slack, we upgraded. We were overweight through it from May. Last time I was here, I was pretty bullish in May and we went down to benchmark weight.And so we just told our clients, look, if you've been following us, then you're ahead on the year. You're be ...

learn more. >> Welcome back to The Exchange. Let's talk small caps.According to the latest Bank of America flow data, clients were net buyers last week of large and mid-cap stocks, but they were sellers of the small caps and according to their fund manager survey, 44% say large cap stocks will outperform small caps this year. That's a rise from the previous reading. Small caps have continued to underperform, with the Russell 2000 only up 1.5% so far this year.My next guest, though, remains near-term cautiou ...

So as you look at the markets here, obviously we have seen a few names sort of dominate the trade, but where do you think investors should be looking for sort of more potential upside right now. >> Good morning, Julie. Well, a growth shop as well as uh focusing on small caps uh predominantly uh within that some of the beaten up sectors that really haven't performed this year, healthcare, uh energy uh are a couple of sectors that we really like.Healthcare in particular has dropped as a percentage of the S&P ...

Now to the business of sports. Earlier this year, Aerial Investments launched Project Level, an investment vehicle into women's sports. Here's Melody Hopson.I call women's sports the small caps of sports. It's easil easy to see right now if you look at the Lakers and their 10 billion dollar sale price. And maybe the story is true about a recent transaction that has occurred with the Connecticut Sun being at 325 million.There are light years of difference in valuations and in prices. And we think that create ...

Today's top story, President Trump's reciprocal tariffs taking effect at midnight. Investors continue to talk about the potential impact on inflation and the broader markets. Here's what famed value investor Melody Hobson Hod Hobson, excuse me, told Andrew in Aspen.I think the market has walked a lot off and I think that that's in the hopes of this all uh being rational at some point and taking care of itself. And I think AI has obviously been like rocket fuel in this market and that's helped a lot. Do you ...

If anyone's watching the show and those two stocks have an outsized impact on your portfolio, I encourage you to diversify. I look at small caps in the US trading at the the cheapest valuation relative to large cap caps since 2000, since June of 2000. And if you look at the 25 years since then, small caps have actually outperformed large caps even with Microsoft and Apple and Meta and everyone else driving them higher.Valuation is not a perfect timing tool. Um, but it does tend to work longer term. And righ ...

All right, let's bring in Mike Wilson. He is chief chief investment officer and chief US equity strategist for Morgan Stanley. And and Mike, just on these points, you're not worried about inflation, at least in regards to what it means for the markets. >> Well, that's right. And I mean, we're just going through all these numbers. It's like, you know, alphabet soup, all these different measures of inflation. And so what we do as equity strategists and investors is we look at earnings. Earnings, you know, tel ...