Norton: It's not a new world order yet, but there are definitely shifting sands

Summary

Marta Norton, Empower's chief investment strategist, discusses how Washington policy, tariffs, and China trade realignment create shifting sands and long-tail risk for company cash flows. She argues earnings and cash flows are the ultimate investing driver, and recent tech and bank rallies reflect a healthier focus on results. On tech, she sees some Magnificent Seven names as attractive after valuation pullbacks and believes the AI trade remains alive. Her preferred ideas are the AI subset and healthcare.

• Marta Norton explains how Washington policy and trade tariffs remain a long-tail macro factor.
• She stresses company earnings and cash flows as the key investment determinant.
• She notes tech has recovered and banks are rallying as results come in.
• She says tech is expensive versus history, but other sectors are not cheap.
• She sees attractive valuations among some Magnificent Seven names after the recent malaise.
• She believes the AI trade remains alive and can be bought below prior nosebleed levels.
• Her forward best ideas are the AI subset and healthcare.