We have a secular trend going on unlike anything we've seen in a long time: BMO's Carol Schleif

We’re now on the markets on this final day of the week. The Dow now on a seven day winning streak. Chief Investment Officer at BMO Family office. Good morning to you. Good morning. So what do you think, what do you think the Dow’s been on a nice little little run as the run continue it’s it’s sort of it’s been a run despite earning misses and guidance, it’s been weak and it’s sort of hard to understand what’s happening here. We really think that the markets are are adjusting to a lot of different events going on. It’s a broadening and leadership and a turnover of leadership. It’s a hopefully a little bit less intense focus on the Fed if you will and more on overall the health of the economy. And we’re seeing things stabilize in in a nice way that jobs market has come from the rapid boil down to a nicer simmer and things look pretty sustainable. And you’ve also got people despite the fact that we wish they’d quite intensively focusing just on the Fed and monetary policy, you’ve got people starting to discount that Maybe just maybe we’ll get a cut or two in the into back into this year from earlier expectations of pushing them out. Next year. You think that’s what’s really pushing all the markets higher at the moment? We definitely think there’s a lot of volatility underneath, but it’s really important to remember too that we’ve got a secular trend going on here unlike anything we’ve seen in a very long time in terms of rebuild. All the various acts that the CHIPS Act and the Inflation Reduction Act and the Infrastructure Act that are putting substantial amounts of money and teeing up substantial construction projects and infrastructure projects back in the United States. We’ve also got artificial intelligence already starting to improve margins on some and it’s. Impacting others negatively as they spend to put those data centers in. But when you zoom out and look at this from the next couple of year basis, we are teeing up the economy for some really strong solid baseline structural growth. So what’s the play there for think the players to to look at those broadening industries, you’ve got industrials, you’ve got some financials that have been beaten up and and coming back although you do as you mentioned in the earlier segment have some cracks in consumers. So there’s things to watch there the play is definitely. AUS centric sort of play, It’s reassuring. It’s looking at taking our manufacturing from such a small percentage of our economy back up more. It’s playing those second and third generation companies that can lean into the artificial intelligence and it’s also looking into those who own the data sets to train that artificial intelligence on.