Podcast: Are the Magnificent 7 giving way to the Great Rotation?

The Federal Reserve's recent interest rate cuts, amid disinflation and strong employment, may support broader stock market growth, with small caps showing potential for outperformance. Historically, small caps have outperformed large caps after rate cuts, and recent earnings trends suggest this could continue.

The market has shifted from reliance on large tech stocks to broader participation, including small and mid-cap companies. Portfolio Manager Justin Livengood is optimistic about the stock market's foundation, citing resilient GDP growth and positive small-cap earnings.

He also highlights key investment themes, including the ongoing AI boom, which is transitioning to a phase focused on return on investment, and opportunities in commercial aerospace and real estate, particularly in REITs and senior living. Livengood advises that while small caps are poised for growth, investors should be prepared for volatility due to their smaller market share.