Mike Wilson

Well, I think it's five to six now over the next year.

But still, that's more than what the market's anticipating right now.

The market's anticipating about three, three-and-a-half cuts between now and the end of next year.

So, I mean, look, I think the issue – it's not an issue, but I think one of the concerns that the market has had, one of the reasons why it's been narrow, is that the market –

kind of wants more Fed cuts.

In order to get the private economy really moving, we do need kind of that base rate a bit lower, and that's why we've kind of stayed at the quality curve and why the market performance has been quite narrow.

So, look, I think because of the effects of COVID, kind of the boom-bust on inflation itself, the Fed is probably going a little bit slower than they would normally, which I don't think is necessarily the wrong decision.

But there is that tension, as I mentioned before, between the market and how fast the Fed is moving.

Yeah, we think so.

I mean, we've kind of held back on trying to make the kind of small cap, mid cap broadening call.

But now we think we're getting closer to that moment.

where we do think we're going to see broader performance in 2026, mainly because the earning story now is improving.

As we've been saying for quite a while, a good chunk of the private economy has been in a recession for many years.

And we think that's now emerging from that.

Some of that's due to some of the policy changes.

And quite frankly, they're just pent up demand.

But the missing piece there, going back to the Fed again, not to put too much pressure on them, but we do need lower rates for that private economy to get moving.

The good news is, Nathan, is that in the third quarter so far, the reporting season, we are now seeing double-digit earnings growth on a year-over-year basis for the

median stock, and that's the first time we've seen that kind of growth in four years.

So I think there are early signs that we're seeing a broadening of the earnings story, and that's what ultimately will lead to better, broader performance in the stock market next year.