“The number one question being asked by clients is: is this a correction or the start of something bigger. While my first instinct is to say that it is a normal correction, I am beginning to see some signs of concern. First off, earnings estimates for 2H′24 are seeing revisions lower with 3Q coming down 1.4% since July 1st and 4Q coming down 0.2%. The bigger concern however is the waning ‘AI Enthusiasm.’ The circular capex cycle for the largest, most liquid companies does not appear to be ending just yet, but investors are now questioning what the return on investment will be in the future.”

 “I do think bad fundamentals in this market environment are going to get really punished. Good fundamentals — I think the bar is just higher right now for a lot of these tech companies in this earning season... And that’s a dynamic that is not necessarily going to last for a long time, but that’s sort of the environment we’re in right now.”

 “A lot of these companies, the fundamentals are just still really good... And I think so long as the fundamentals remain good, and the earnings growth outlook is still positive, and earnings estimate revisions remain in a positive direction, I don’t think the stocks are unreasonably priced.”

 “We are Overweight, but acknowledge LVS may be more suited for investors w/ duration/appreciation for capital return than those seeking NT upside from Macau gross gaming revenue re-accelerating.”

 “We see L/MSD F-35 sales growth in 2025-27 as sustainment grows with the fleet and delivery payments catch up. In addition, the F-16 has a backlog of 125 planes and is ramping from 2/mo. to 4/mo. by H2:26. Both programs should see uptrending profitability, and they’re a combined 28% of sales.”

 “There’s a lot of overlap between a Fed cut imminent and a Trump White House and that’s why I think the interplay is positive on small caps. I think for the month of August small caps can do something more than 15% even, because they underperformed so dramatically. And the type of move we’ve seen just the last two weeks is something that only happens at the start of a pretty significant advance for small caps.”