Shannon Saccocia, CIO, Boston Private

The market rally started to broaden in April-March, but fizzled in May-June. That's why the market is hesitating to rotate now--is the Dow and small-cap rally today a blip or a true broadening out?

Energy, tech and healthcare will likely lead sales growth in the second half of 2024.

Biotechs look speculative in profitability. She prefers big pharma, seeing continued value, despite big moves in stocks.

Transports haven't seen a tailwind lately. Has the sector bottomed? The timing is tough for transports now.

Second-half 2024 comps in earnings are compelling.

Energy is up 3% this week. People are driving and gas demand is up big, but expect volatility.

They're focused on their growth projects in Arizona and Indonesia, and are not focused on M&A, despite talk of the M&A cycle in materials heating up. This is driven by copper prices, but FCX is worth watching.

The buyback buys them some time, a smart move. Think of the refresh cycle later this year. But AI needs to be more relevant to their installed base to support that refresh. It's a second-half, show-me story.

Growth to value isn't dead yet.

There's a shorter-term trend on rotation, and a longer-term trend based on a secular tailwind on electrification.

This holds growing dividend stocks, weighted towards higher yields, so it's attractive as yields on the cash side decline.

There's a huge market for the weight-loss drug. Also, LLY has a strong drug pipeline: ulcerative colitis, Alzheimer's, for instance. 

Long-term supply and demand will support energy stocks, but now the commodity is range-bound. Stronger demand from China and geopolitical concerns will raise energy prices and stocks. 

Healthcare has been weak this year, but next year it can play offence and defence.

It's good news that they just reinstated the dividend. It re-establishes credibility among shareholders. They will remain disciplined in growing Disney+ and won't cannabilize all their cash flow to do it.