Humilis Investment Strategies CEO and CIO Brian Belski struck an upbeat tone on stocks this week, naming Microsoft and Acuity as his top picks during a television appearance. Speaking on Varney & Co., he argued that the market still has room to run. His comments come as investors weigh corporate earnings and interest rate policy while searching for leaders in the next phase of the rally.
Humilis Investment Strategies CEO & CIO Brian Belski provides his bullish outlook for the markets and shares his top stock picks, Microsoft and Acuity on ‘Varney & Co.’
Why Optimism Is Holding Up
Belski’s stance reflects a view that profits and cash flows remain supportive despite mixed economic signals. He pointed to companies with strong balance sheets and recurring revenue as better positioned to handle policy shifts and uneven demand. That framework has appealed to investors who favor quality over speculative names.
Historically, late-cycle markets reward firms with clear pricing power, steady margins, and loyal customers. Large technology platforms and select industrial names have often fit that profile. Recent earnings seasons showed that companies reducing costs and tying customers to long-term contracts can defend profit even when growth slows.
Case for Microsoft
Microsoft has become a bellwether for corporate technology spending. The company combines cloud services, workplace software, and developer tools under subscriptions. Investors see those features as a shield in slower periods. New investments in artificial intelligence have also opened fresh avenues for demand, from copilots in office software to expanded cloud workloads.
Belski’s endorsement taps into that playbook. He favors durable cash generation and wide distribution across industries. Supporters say Microsoft’s scale lets it invest without straining profits. Critics warn that expectations are high and that any stumble in cloud growth could weigh on the stock. The debate hinges on how quickly enterprise customers adopt new AI features and whether budgets stay firm.
Why Acuity Draws Interest
Belski’s second pick, Acuity, offers exposure to industrial and building technologies tied to efficiency upgrades. Investors have been watching companies connected to lighting, automation, and controls as cities and businesses retrofit older spaces. These projects can deliver energy savings and comply with stricter building standards.
Supporters of the theme say multi-year renovation cycles provide steadier order books than one-off projects. That can help smooth results through economic swings. Skeptics point to the sensitivity of such spending to credit conditions and construction activity. If financing tightens or new builds slow, orders may slip. The bull case relies on steady retrofit demand and better margins from connected systems and software.
Risks and Counterpoints
Valuation is the main pushback. Leaders in both technology and select industrials trade at premiums. That leaves less room for disappointment. Policy risk is another variable. A slower pace of rate cuts, or sticky inflation, could pressure multiples. Concentration is a third concern. A small group of mega-cap names still drives a large share of index performance, raising questions about breadth.
- High valuations can magnify earnings misses.
- Rate uncertainty affects risk appetite and credit costs.
- Narrow leadership may increase volatility if sentiment shifts.
What to Watch Next
The next test will be corporate guidance around technology budgets and building upgrades. Investors will look for signs that AI tools move from trials to paid deployments, and that customers keep buying higher tiers of cloud and software. For Acuity, attention will center on orders tied to retrofits, municipal projects, and demand for connected controls.
Macro signals also matter. Stable jobs data and easing inflation would support spending. A sharp slowdown could dent orders and compress valuations. Market breadth is another checkpoint. If gains expand to small and mid-cap stocks, it may confirm a healthier backdrop for cyclical names tied to construction and manufacturing.
Belski’s bullish call highlights a simple message. Stick with firms that earn steady cash, serve repeat customers, and can invest through the cycle. Microsoft fits that story in software and cloud, while Acuity offers a play on efficiency and modernization. The next few quarters will show whether that mix can power returns as policy shifts and costs evolve.
