Broadening delivered. Now prepare for volatility.

Chris Galipeau, Head Market Strategist at the Franklin Templeton Institute, revisits his 2025 view that equity leadership would broaden beyond the Magnificent Seven. He says that broadening has now occurred and makes an earnings-driven case for small caps, equal-weight indices and international markets. He also warns that a more volatile, demanding phase lies ahead.

1. Galipeau recounts his 2025 thesis that equity leadership would broaden beyond the Magnificent Seven.
2. He says the broadening thesis has been delivered.
3. He presents an earnings-driven case for small caps, equal-weight indices and international markets.
4. He cautions that investors should prepare for near-term volatility but stay ready to put capital to work on pullbacks.