We have been bullish since early April and have maintained this view despite elevated valuations and macro uncertainties. We push back on the view that markets are complacent. While there are risks to the outlook, we think strong corporate fundamentals, policy rate cuts and a shallow growth slowdown are enough to push equity markets to fresh highs through 2H25. We doubt the August reporting season will derail positive market momentum and recommend leaning into into domestic cyclicals and small-to-mid caps while avoiding crowded and overvalued trades.
