David Busch assumes the higher PPI numbers are tariff-related and will pass through to the CPI measurements soon enough. “Inflation is still persistent, it’s still sticky,” forcing the Fed onto a longer path for rate cuts. He’s looking at sectors like consumer discretionary, which could benefit from a steepening yield curve. “I would also consider REITs,” he adds, with the expectations that rates will come down, but emphasizes the need for quality names. He also likes fixed income.