Name: The rally's road ahead
Uploaded: 2026-01-16T17:58:29+00:00
Duration: 592 s

Speakers

Stephanie

Jenny

Jason Yanowitz — Co-Founder, Blockworks

Josh Brown — CEO, Ritholtz Wealth Management

Frank

Summary

The Investment Committee debated whether the market's rally can continue with technology and financials lagging. Stephanie argued the economy is stronger than expected and favored cyclicals while looking to add to Broadcom on weakness. Jenny preferred taking some risk off near all-time highs and highlighted dividend rotation. Jason favored the equal-weight broadening trade, and Josh Brown positioned for a late-cycle rotation into commodities, materials, energy, and industrials.

S&P and Dow are near all-time highs, but technology and financials have lagged.
Stephanie points to strong economic data, firm labor, and productivity gains, favoring cyclicals and adding to Broadcom.
Jenny warns of a K-shaped labor market and recommends reducing risk near highs, while noting dividend ETF rotation.
Jason likes the market-broadening/mean-reversion trade in equal-weight RSP.
Josh Brown sees a late-cycle environment and favors commodities, materials, energy, and some industrials.
The panel debates whether to take profits, stay diversified, or press late-cycle sector bets.

Ideas

Stephanie 1:55

Own cyclicals on stronger economic data.

The economy is stronger than expected: the Atlanta Fed tracker is at 5.3%, weekly jobless claims are the lowest in two years on a four-week average, Philly Fed and Empire State manufacturing data are solid, and productivity rose 4.9% while unit labor costs fell 1.9%. She prefers higher growth with sticky inflation and wants to own cyclicals—industrials, materials, energy, and financials—because of that economic strength.

Stephanie 2:07

Buy Broadcom dip after earnings selloff.

Even within tech, she is looking for beaten-down places to add. Broadcom has fallen almost every day since reporting earnings, so she is considering adding to it.

Jenny 2:38

Reduce risk as market nears peak.

She is positive on her own diversified portfolio but cautious on the broader market and economy. Labor is weakening beneath aggregate numbers, and with the market still near an all-time high, she says investors should take some risk off/off the table, though not exit stocks comprehensively. She cites Rick Rieder's view that 2026 is for investors, not gamblers, and favors being granular and careful.

Jenny 3:21

Favor dividend ETF rotation via DIVI.

Dividend ETF DIVI is up 4.5% this year and she loves the rotation into dividends, even though she wants to reduce overall portfolio risk.

Jason Yanowitz Co-Founder, Blockworks 6:16

RSP gains on market broadening.

He likes the mean-reversion/broadening trade as healthy for markets, reducing the concentration seen in 2023. Equal-weight S&P 500 ETF RSP started picking up steam late last year and is producing now.

Josh Brown CEO, Ritholtz Wealth Management 8:59

Late-cycle rotation into commodities, materials, energy.

This year feels like late cycle, which does not necessarily mean an immediate recession. In late cycle, commodities, materials, and energy historically outperform. Commodity pricing pressures are building because demand exceeds supply in certain commodities, and the labor market is softening. He is looking at stocks in materials, some industrial areas, and commodities that were not participating before but now are.

The rally's road ahead

Summary

Ideas

Up Next