MARKET STRATEGIST RYAN DETRICK. GLAD TO SEE YOU. >> GOOD TO SEE YOU. >> ARE YOU BULLISH STOCKS FROM HERE, HOW DO YOU SEE THINGS? >> WE ARE. WHAT YOU JUST TALKED ABOUT BEFORE I CAME ON. EARNINGS ARE STRONG, PROFIT MARGINS ALSO HAVE BEEN SIGNIFICANTLY INCREASING, KIND OF AGAINST WHAT A LOT OF PEOPLE EXPECTED. ALSO CAPEX, EXPENDITURES HITTING ALL-TIME RECORDS, EARNINGS AND OTHER TWO THINGS, IT'S HARD NOT TO BE BULLISH. WE'VE BEEN OVERWEIGHT EQUITY SINCE DECEMBER 2022. A LOT OF PEOPLE DIDN'T LIKE THAT CALL BUT IT WORKED OUT. RIGHT NOW, WE HAD THAT 5.5% CORRECTION LAST MONTH, WE THINK THAT WAS ENOUGH TO BRING THE FEAR. THE VIX SPIKED ABOVE 20 RKS A LOT OF OUTFLOWS COMING IN AND A LOT OF FEAR, EVEN THOUGH IT WAS ONLY 5%. A LOT OF OTHER STOCKS WERE DOWN MORE. AND NOW HERE WE ARE, MAY IS OFF TO A GOOD START AND IN AN ELECTION YEAR. SEASONALITY, DON'T BLINDLY INVEST, BUT YOU TEND TO GET A LOT OF STRENGTH IN THE SUMMER OF AN ELECTION YEAR. THIS YEAR IS PLAYING OUT LIKE THAT AGAIN, WE'LL HAVE A GOOD SUMMER RALLY IN AN ELECTION YEAR. >> I'M GLAD YOU REFERENCED THE 5% PULLBACK WE HAD IN APRIL. SOME WOULD LOOK AT THAT AND SAY IT'S NOT ENOUGH, AT LEAST TRADITIONALLY, TO, YOU KNOW, SHAKE OUT SOME THINGS THAT NEEDED TO BE SHAKEN OUT BEFORE YOU CAN, YOU KNOW, REFRESH. NOW, THE MARKET MAY BE PROVING THAT INCORRECT BECAUSE IT'S BEEN A PRETTY STRONG STEPBACK AS I SAID AT THE TOP OF THE SHOW, AND YOU THINK IT'S BELIEVABLE BASED ON EARNINGS GOOD ENOUGH, ECONOMY IS STRONG ENOUGH, AND RATE CUTS EVENTUALLY COMING? >> YEAH, YOU ADD IT ALL UP, WE DO. STOCKS AND S&P, ABOVE 20-DAY MOVING AVERAGE AT THE MIDDLE OF APRIL LOWS AND IT'S LESS THAN 20 10%. THAT'S GOT WASHOUT MATERIAL. WE HAD THE VIX, LAST TIME WE SAW SOMETHING LIKE THAT WAS MARCH OF LAST YEAR. THINK ABOUT IT, THERE WAS A LOT OF FEAR EVEN THOUGH IT WAS ONLY 5.5% CORRECTION, MILD CORRECTION, I SHOULD SAY, FROM THE POINT OF VIEW. AND ONE OTHER THING, GUESTS HAVE POINTED THIS OUT BEFORE, I'LL MENTION IT AGAIN, MAY IS HIGHER THAN NINE OF THE LAST TEN YEARS, SELL IN MAY, GO AWAY, WORST SIX MONTHS HIGHER EIGHT OF THE LAST TEN YEARS. SO, AGAIN, HISTORY REPEATING ITSELF BUT OFTEN RHYMES, MARK TWAIN LIKED TO USE THAT, THE WASHOUT, THE ECONOMY IS STRONG, FED IS DOVISH, BUT OVERALL WE'RE OPTIMISTIC. WE'VE BEEN JOEF WEOVERWEIGHT, A STILL ARE. >> DOVISH, TO A POINT. PUTTING IT THIS WAY, I'M NOT GOING TO SUGGEST THEY'RE SCREAMING DOVISH, BUT THERE'S CERTAINLY A CHAIR HIMSELF AND AT THE END OF THE DAY IT'S ALL MA THAERTS THE CHAIR HIMSELF LAST WEEK WAS NOT AS HAWKISH AS SOME HAD FEARED, I DON'T KNOW THAT I WOULD GO AS FAR AS TO SAY THEY'RE ALL THAT DOVISH. I MEAN, THEY'RE CERTAINLY NOT CUTTING RATES LIKE WE THOUGHT THEY ONCE WOULD AND, YOU KNOW, MANY SUGGEST WHETHER IT'S KEN GRIFFIN OR OTHERWISE THAT, OKAY, WE MAY GET ONE, MAYBE NOT SEPTEMBER, MAYBE SEPTEMBER OR DECEMBER, BUT WE'RE NOT GETTING NEARLY WHAT WE THOUGHT. >> NO, YOU'RE RIGHT, GOOD PUSHBACK THERE, BECAUSE, AGAIN, IT WASN'T AS HAWKISH, GOOD WAY TO PUT IT. WE LOOK AT INFLATION, UP OVER 9% AND THEN DOWN TO 3 ON THE CPI AND WE'VE HIT THIS LITTLE BLIP, IF YOU WILL, AND WE'RE OPTIMISTIC, SCOTT INFLATION WILL CONTINUE TO IMPROVE. WAGES ARE A BIG PART OF THACHLT THE ECI IS SCARING EVERYBODY, AND THEN WE SAW THE POSITIVE WAGE GROWTH, ADP SAW WAGE GROWTH ACROSS THE BOARD AND THE SUPPLY CHAINS ARE STILL IMPROVING OVERALL. SO, BOTTOM LINE IS THIS, A COUPLE MONTHS AGO EVERYONE SAID SIX TO SEVEN CUTS, MARKET SAID, AND THEN TWO WEEKS AGO WE'RE SAYING, LISTEN, MAYBE NO CUTS, MAYBE EVEN AHIKE. WE PUSH BACK AGAINST THAT FOR THE FIRST TIME IN TWO YEARS, WE ADDED SOME TREASURY, NOT A LOT. A LITTLE BIT ABOUT THREE WEEKS AGO ON MODELS REREONE FOR ADVISERS, IT'S NOT LIKE WE'RE BIG BOND BULLS, WE THOUGHT THAT PENDULUM SWUNG WAY TOO FAR AND WE'RE OPTIMISTIC WITH THE STRONG PRODUCTIVITY, LAST WEEK'S NUMBER WAS A LITTLE WEAK, BUT WHEN YOU HAVE STRONG PRODUCTIVITY LIKE WE THINK WE'LL CONTINUE TO SEE, HIGHER WAGES, COVER FOR THE FED TO CUT AND THE ECONOMY DOES BETTER WHEN YOU HAVE STRONG PRODUCTIVITY. OPTIMISTIC TWO CUTS, PUT A BOW ON IT. >> IF WE GET THE SUMMER RALLY THAT YOU EXPECT, WHAT TAKES US THERE, WHAT LEADS US DURING IT? >> WE'VE BEEN OVERWEIGHT CYCLICALS AND LAST MONTH ADDED MORE TO INDUSTRIALS AND FINANCIALS, THOSE AREAS, BUT I KNOW A LOT OF PEOPLE COME ON, SIGNAL SMALL CAPS, DIRTY WORD SOMETIMES, SMALL CAPS AND MIDCAPS, IF WE SEE MORE PULLBACK IN YIELDS LIKE WE HAVE, LOOK WHAT'S HAPPENED, WE CAN THAT IS ONE OF THOSE AREAS THAT'S SO UNDERLOVED AND SO UNDERAPPRECIATED, WE COULD SEE A BROADENING OUT, WE NEED INFLATION TO COME BACK, THE BROADENING OUT OF THIS BULL MARKET AND WE ARE SLIGHTLY OVERWEIGHT, AT LEAST MIDCAPS AND A LITT
