Market Outlook & Strategy - Piper Sandler suggests investors should "trade the cycle, not the headlines," implying a focus on underlying economic trends rather than short-term news events [1] - The firm believes the fundamentals of the economy remain a tailwind for equities [3] - Piper Sandler is broadly constructive on the market, citing earnings and the Federal Reserve's easing policies [6] - The firm anticipates a better, broader economy in 2026, driven by lower interest rates, improved housing data, and increased manufacturing activity [8] Trade Tensions & Government Shutdown - The market's reaction to tariff headlines has diminished, and the firm doesn't believe President Trump will disrupt the bull market [5] - Piper Sandler doesn't foresee the government shutdown significantly impacting corporate earnings or lasting long enough to become a major market concern [16][17] AI Theme - Piper Sandler views the AI trend as more of a boom than a bubble, noting that major companies are generating substantial earnings [13][14] - The firm points out that multiple expansion is not the primary driver of returns in the "Magnificent Seven" stocks, as earnings are [14] Investment Opportunities - Piper Sandler highlights that rising unemployment can be a bullish catalyst for equities, contrary to popular belief [19] - The firm recommends early cyclical sectors, financials (banks), homebuilders, and select consumer discretionary areas [20] - Piper Sandler anticipates a broadening of the market into 2026, with potential for laggards to see relative performance [21]

The business cycle depicts the increase and decrease in production output of goods and services in an economy. It's also referred to as an economic cycle. https://t.co/L3876ZmUwU ...