Federated Hermes chief equity market strategist Phil Orlando is feeling bearish. He's calling his investor presentation “recession watch for 2023” and he's projecting that the 20% six-month rally just seen, will reverse over the next six months. And he's favoring cash, Treasuries, and defensive equities.

If we're right that this 20% six-month rally here reverses over the course of the next six months, then I think the answer to, you know, we've got the NFL draft going on. I think we want to keep the defense on the field right now. So we like cash, we like treasuries and we like defensive equities in stable demand categories. So large and small-cap value stocks and international stocks have low PS, low betas, and high dividend yields. So our mantra here is let's hunker down, and preserve some capital until we get some clarity on some of these issues we've just talked about over the next couple of quarters.