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00:00Katrina Dudley of Franklin Templeton weighs in on this equity market writing. The US market has consolidated after a strong run, but breadth is improving small and mid-caps along with equal weight. S & P 500 are outperforming or keeping pace with the MAX seven. Historically, such rotations signal more durable market leadership and sustained equity gains. And please say that Katrina joins us now. She's senior investment strategist at Franklin Templeton. Katrina, great to see you. Thanks for coming in this morning. Great having me. I like that trade. Got another boost today with maybe a little bit of disappointment from in video and small caps outperforming. So how sustainable is it? I think what we're looking at is the breadth of the market. It is not the MAG seven that are doing all the heavy lifting that they were doing over the last few years. We've actually seen the market cap weighted S & P perform about in line with the overall S & P. And that's good news because it means that there's more stocks to focus on. It means that there's more stocks to generate earnings growth. And when there's more earnings growth, you know, valuations will be supported because ultimately, at the end of the day, it's earnings growth that drives markets. It's not valuation.

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Mag 7 No Longer Doing All the Heavy Lifting, Dudley Says

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