Steve Chiavarone on Market Reacceleration and Economic Recovery

Earning Season Performance

• 📈 The current earning season has met expectations and is surprising the market to the upside with broad-based beats of approximately 8%.
• 💡 A rare occurrence this time of year is seeing upward revisions for current and next year estimates, supporting the idea of an economy emerging from a soft patch.

Economic Slowdown vs. Reacceleration

• ⚠️ Contrary to concerns about an impending slowdown, the data suggests the slowdown has already occurred and the economy is now reaccelerating.
• 📊 Revisions to jobs numbers, ADP reports, earnings, and consumer confidence all show a similar pattern of economic recovery.
• ⚡ The speaker's call is that the current economic data reflects a world that has already moved past the slowdown phase.

Market Indicators and Strategy

• 🚀 The word of the day is "reacceleration," indicating a move out of a recent economic soft patch.
• 🏠 The equity market is acting in an early cyclical manner, with sectors like home builders, auto names, and interest-rate-sensitive stocks showing strength.
• 📊 Small caps, a significant overweight for Federated Hermes, have kept pace since the April bottom.
• ✅ The view is that the slowdown has passed, and investors can buy weakness in the current market environment.