Zacks Investment Management Client Portfolio Manager Brian Mulberry shared his economic outlook following the latest PCE data release.

"What we're really seeing is kind of just some stable data that doesn't reflect anything super bad but nothing super good either," he told Yahoo Finance. Mulberry notes this makes it difficult to justify the S&P 500's current valuation levels.

Looking ahead to 2025's expected pro-growth agenda under Trump, Mulberry cautions investors about market transitions. "Simply what we're saying is we're at a moment of inflection as we change administrations and different policies come into play. You're really going to want to know what you own and know why you own it."

For investment strategy, Mulberry recommends focusing on sectors with "real durable earnings structures" like financials and utilities, which he believes offer better growth potential and stability compared to the broader market. He highlights JPMorgan (JPM) in specific saying "on a relative valuation basis [its] a very good growth name."

Watch the video above to hear Mulberry's view on the growing AI trade.

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This post was written by Angel Smith