Are US PMIs bottoming? If so, Industrials gain >90% of the time with 12M returns 20-30%. 5 stocks + 3 ETFs. While seasonals and "hotter" economic data drive risk-off, Fed becoming "data dependent" historically leads to rising stocks despite higher rates.

Following several somewhat "hotter" data prints, markets are now moving back into the "higher for longer" camp, and in turn, markets are shifting into risk-off. We think this will prove to be temporary as much of the "hot" inflationary data points stem, in part, from seasonals (Jan issues) and warmer weather (in Jan). So some payback is coming.

Still, this is just further reflect that equity markets have become "data reactive" while the Fed has become "data dependent." That is, for ...

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