Raymond James Investment Management

Breadth is making a comeback. We continue to see a rotation in the market as the increase in earnings breadth translates into increased price breadth. I have advocated for clients to consider leaning into these changes to build better balance in portfolios, and I’m even more adamant about that today. There’s clearly some #volatility as we start a data-packed week, headlined by the August payrolls report on Friday. But through all the volatility and changing narratives, earnings have been strong, guidance has been positive, and margins have expanded (and not due to price gouging). I continue to see opportunities across “AI 2.0” companies as capex remains solid, in aerospace & defense, and in higher quality companies down market cap as well as in international developed and emerging markets. Thank you Jonathan Ferro, Lisa Abramowicz, and Annmarie Hordern for having me back on Bloomberg Surveillance this morning. Check out our discussion below where I dive deeper into the resiliency of corporate and economic growth, how to play increasing market breadth, and how to think about potential volatility around labor market data. The interview starts at the 54:15 mark in the broadcast: https://lnkd.in/dzsww8is Raymond James Investment Management

RJ Financial Professionals: We look forward to seeing you at the 2024 PCG Atlanta Regional Conference. Join Mike Gibbs, Managing Director and Lead Portfolio Manager, Gibbs Capital Management, for an updated perspective on the equity markets and the portfolios managed by the Gibbs Capital Management team. #opportunities #investing #equitymarkets

Rate cuts are on the way, but investors should brace for volatility. Chief Market Strategist Matt Orton, CFA, discusses opportunistic approaches: https://bit.ly/44EeLNm

The time has come. Jerome Powell gave his clearest signal yet that a Fed cut is coming in September, confirming the Fed’s dovish turn. The key question going forward is what kind of labor market would warrant more stimulative policy, and how far are we from that point today? It was great joining CNBC alongside Dominic Chu on Friday to discuss my thoughts on the market, monetary policy going forward, and where I see opportunities currently. Here are the key takeaways: - The market is currently pricing in 100 basis points of cuts by year-end, which I think is overdone. My base case is for three 25-basis point cuts, one at each remaining 2024 Fed meeting. There’s still a lot of unknowns about where policy is heading, and investors need to pay extra close attention to the labor market in attempting to glean the Fed’s future path. - Consider leaning into “AI 2.0” companies. The hyperscalers have already committed over $200 billion of capex for AI growth over the next year alone, and this isn’t even including funds being deployed from the CHIPS Act. Think about leaning into the capex beneficiaries outside of Info Tech like electrical equipment companies, electrical utilities, and machinery companies involved in actual construction, which I believe offer a more attractive entry point. - I believe aerospace & defense companies can continue their strong performance. Heightened geopolitical tensions and the increased global spend on defense has translated into strong earnings for many companies and guidance has been positive. I expect the trend to continue as more nations increase their percentage of GDP on defense spending. Raymond James Investment Management

The data doesn’t point to a rapid economic slowdown, but the market’s path higher is not likely to be a straight line. Read the latest Markets in Focus: https://bit.ly/44EeLNm

RJ Financial Professionals: We look forward to seeing you at the 2024 PCG Boston Regional Conference. Join Mike Gibbs, Managing Director and Lead Portfolio Manager, Gibbs Capital Management, for an updated perspective on the equity markets and the portfolios managed by the Gibbs Capital Management team. #opportunities #investing #equitymarkets

As always, it was energizing to see everyone at our quarterly Town Hall meeting. For me, these get-togethers serve three important purposes: - To build the culture of our organization, - To provide transparency into how the business is doing, and - To learn about the capabilities that we have across Raymond James Investment Management for serving our clients. I was happy to share that the overall picture is good. This is a great place to work, and we continue to achieve the objectives that we want and to grow the business in the way that we think we can. Thank you to everyone at Raymond James Investment Management for your contributions. Let’s keep the growth going.

It was great to see everyone together again over lunch at our quarterly Town Hall meeting. Touching base on where we stand, then looking ahead to new opportunities and initiatives, we heard from: · Bob Kendall, President, Raymond James Investment Management ($102.7 billion in assets under management and advisement, as of June 30, 2024). · Frank Sustersic, CFA, Senior Portfolio Manager, and Theresa Tran, CFA, Portfolio Manager/Senior Analyst on the Chartwell Small and Mid Cap Growth Equity investment team. · Matthew Johnson, Head of Product Management and Marketing, and Mo Sparks, our new Head of Exchange Traded Funds.

After the S&P 500’s crash on Aug. 5, consider some of the long-term secular growth winners that “were thrown out with the bathwater,” says Chief Market Strategist Matt Orton, CFA: https://bit.ly/44EeLNm