Post-FOMC fallout creates temporary "Fed put" on regional banks -- hence, recommend 4-6 week tactical OW in regional banks $KRE plus 5 regional stocks

NEW: Notice new section (below): added so you can see our tactical ideas

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Last week, we were in Boston visiting with our institutional investor clients. Investors are overall cautious, which is not surprising, given the gauntlet of negative headwinds buffeting markets since early 2022.

The gains in equities YTD has been good for some managers, particularly those that tilted somewhat growth/quality. And this was a reversal compared to 2022, where low earnings variability seemed the only place for investors to find relative performance. But those doing well didn't just own FAANG, but have had success with stock selection. After all, earnings performance has surprised to the upside, relative to muted expectations. It is clear many are cautious. Most see a recession as likely given the current "tight" policy of the Fed, the signal from the steep inversion of the yield curve (harbinger) and generally gloomy assessments by CEOs (the ISM sort of proves this, sitting at 47). And if a recession is their base case, then naturally, they expect earnings expectations to materially weaken in the coming months. Bonds lean more "recession-y": Some of the most experienced investors consider this to be one of the most "uncertain macro environments ever" (Druckenmiller, PT...

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