For that it's a long way to go. We're almost at 58 basis points of cuts priced. If we go from 58 to 50 basis points, who cares? That's not the big move. You're still going from a little more than two cuts down to two cuts. That's not hot enough to weigh on risk assets.

It's mostly a rotation about people being long the wrong stuff. When we look at worst drawdowns from high-PE names, long-momentum names, we find no signal for poor forward returns. Empirically, it's just people being long the wrong stuff, they rotate around.

No, it's not either/or. We're seeing pickup in leading indicators globally, leaning into cyclicals. But MAG7 trading at 26.5x forward earnings vs Russell at 24x. Simply trading flat for 4 months has made them look way cheaper. Next few weeks with earnings strength will be good moment to buy AI stocks and hyperscalers again.

Not today, but tax reimbursements coming through should help lower end of K-shaped economy, weaker households. That leaves transportation, home builders, US retail in good spot.