let's get back to megan horneman.hen you think about political risks, not just election risks, how are you thinking about that through the lens of putting together a portfolio? >> political risk is just one of many risk that we see in portfolios right now. the political risk goes into the election but also, what is each candidate going to focus on in 2025? that can have an impact on portfolios. are we talking about tariffs? inflation? these are things you have to look at. at the end of the day, politics is just one thing. it can be a source of volatility for many different reasons. we are focusing on fundamentals, valuations. whether you look at your portfolio in a short time or a long time like you should, these political pendulums tend to swing in all economic cycles. we would rather look at the underlying fundamentals of the economy, within the sectors, the companies, and the evaluation. is the downside and upside risk being balanced? katie: there was an interesting note out from the likes of morgan stanley saying

. >>> joining us for more on the markets and the third quarter ahead, megan horneman, verdance capital to people that do this for a living, megan. 14, 15% in the first half after 24% in the s&p last year. those are pretty good numbers. i mean, no one ever went broke taking a profit, did they? >> no. i think that right now, the market's sit tting at this reco high and it's a little bit concerning to me that they're not looking at any of the downside risks we may see. the market is focusing on upside risks and what they want to see, which is that the fed is going to come in and can cut interest rates in september. i don't think that's something that we should bank on at this point. the fed's made it very clear, they don't have to be quick to cut interest rates, and then i think from an economic standpoint, we saw it with some of the data today, and we are starting to see weakness in the labor market. that was one of the last dominos that were standing from an economic standpoint. >> is there just so much -- trillions and trillions on the sideline that people have not deployed because the