Joining us on the podcast today is Denise Chisholm, Director of Quantitative Market Strategy. She tells us what factors and market sectors she’s keeping an eye on. Denise takes us through the indicators investors should be paying attention to. She highlights the importance of sentiment indications, such as those provided by the NFIB or the National Federation of Independent Association, considered the “voice of small business owners.” She notes sentiment indicators can be essential tools for understanding the state of small businesses and, by extension, the broader economy. And what sets sentiment indicators apart is their ability to offer real-time insights. Unlike government data, which typically lags. Denise also discusses the consideration between a value trade and value investing. She says where it becomes particularly relevant is in sectors like consumer staples. She says to be aware that valuation hasn't consistently delivered safety or prevented losses over time. So, relying solely on valuation may not be a reliable strategy. In terms of offensive sectors or defensive play, Denise suggests sectors like discretionary, Technology, and Industrials. These sectors exhibit historical cyclicality and varying risk-reward profiles, making them key considerations in offensive strategies.

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