00:00:00 Speaker A
I'm really curious as a firm, how you guys use this technical analysis, sort of combined with the fundamental backdrop where you've got sort of this shifting tariff deadline, right? You have the bill that just passed. You have geopolitical tensions going on, just a lot of other things, as always to watch. So how do you sort of integrate that with the technical strategy?
00:00:37 Speaker B
The macro's been exceptionally complex, we'll call it, in the first half, and even if we look out to the second half, of course, technicals tell us one part of the story and and what price action is doing, but we also have to marry that with the fundamentals and the macro environment. And we look out at the second half here, we're constructive on the market. Little hard to get around the valuation and earnings growth story, especially with all of the uncertainty. We don't have really a lot of concrete details on trade, moving in the right direction. I think the market is okay with that for now, as we'll see how July 9th shakes out and if the August 1st, what what countries are going to be implemented for that August 1st, assumingly August 1st, tariff implementation? And of course, just what the Fed is going to do? We have Fed on hold. Maybe they will cut in September, doesn't look like a a July rate cut is likely. So that macro backdrop, not exactly conducive for the momentum we've seen continuing in the second half. I wouldn't be surprised if we get a little bit of a pause or pull back, maybe late summer for the S&P 500.
00:02:35 Speaker A
So what are you what are you telling clients to do right now, then given, putting all of that together, if you're still expecting when all is said and done, maybe some modest gains in the second half?
00:03:00 Speaker B
Right now, we're neutral equity markets. So neutral is not negative. So benchmark weight in terms of your allocation to equity markets. And look, we're looking for a potential buy the dip opportunity. That's what we think the market environment welcomes versus chasing this rally right now. So buying the dip on some type of pull back to a concrete technical level, support level for the broader market. That's what we're looking for in the second half here, potentially moving to more of an overweight if the stars align on and across our strategies.
