Stephanie Link: Earnings Drive Markets, Volatility is a Buying Opportunity

Market Drivers: Earnings and Volatility

• 💡 The primary driver for equity markets right now is earnings, which have been strong with a 13% increase, significantly exceeding expectations.
• 📈 Revenues are up 8%, accompanied by margin expansion, indicating healthy corporate performance.
• ⚠️ Any market volatility or sell-offs are viewed as buying opportunities, especially with potential Federal Reserve rate cuts on the horizon.

Company Performance and Investment Strategy

• 🎯 Stephanie Link actively buys into companies even when their stocks fall after reporting strong earnings, citing a "sell first, ask questions later" market reaction.
• 🏢 She added to positions in Verdive and IBM because their fundamentals remain strong and their numbers are improving.
• 📊 For Verdive, key metrics include total revenues up 28%, operating margins beating by 200 basis points, orders up 60%, and a book-to-bill ratio of 1.4, with backlog up 30% year-over-year.
• 🚀 Verdive is highlighted as a strong investment for the remainder of the year and into 2026, driven by the data center buildout theme.

Economic Outlook and Fed Policy

• 📉 While acknowledging ongoing trade negotiations, the focus remains on earnings as the core market driver.
• 💰 The market has largely priced in a Federal Reserve rate cut, with potential for another cut in December.
• 📊 Stephanie Link anticipates that the upcoming CPI data will not be a significant number and is unlikely to drastically alter market expectations for rate cuts.