 All right, the markets await the start of second quarter earnings season. Let's talk about it now with John Manley, chief equity strategist at Wells Fargo Funds. John, good to see you back here. Great to meet you here. All right, so second quarter earnings are expected to grow six and a half percent in year over year. Do you think we'll actually exceed that forecast? We usually do. I think the corporations like to keep it modest and hope they can beat it. I still see no reason why they shouldn't. I think it's still a good environment for earnings. I think they're still going up. But still, this is the catalyst that we need to move us to the next level, the markets, and breach some key levels in the S&P 500. All about earnings. The Fed is going to be accommodated, but only mildly. So the valuations aren't cheap anymore. They're kind of expensive. It's going to be driven by earnings where it's not going to be driven at all. And lately in the markets, we've been seeing a rotation out of tech stocks and into financials. Do you expect that trend to continue in the second half? I kind of like them both, but I got to say I like financials more. I think there's more on the come. The as rates go up, the short rates go up. It gives the financial corporations a little more wiggle room to price then says they should be priced. That helps. Tech is expensive. There's no question about it. I think there's still good stories, but I'd like to buy them at better prices. In terms of financials, is it mostly just a yield curve play or does policy deregulation, does that play into it a little bit as well? Well, remember, I work for banks. I'm a little bit prejudiced. I think it's a little bit of both. I think the better yield curve, better economy helps. You'll probably have lower loss ratios. And I think a less adversarial regulatory environment will probably help as well. And is there anything specific you'll be watching for in the big bank earnings that we will get at the end of this week? If you're clean, then they're better. That's what I'm looking for. And the C-card didn't do that for you? No, unfortunately. In terms of other sectors you're looking at for the second half in terms of opportunities? I like healthcare. I still think healthcare is a great collision of new products and old people. And it's more people like me move into their 60s and 70s. They're going to need more help and corporations can provide it. Now, how does it get paid for? I think one of the reasons the Republicans and the Democrats are having so much, so many problems with trying to get healthcare legislation is somebody's got to pay because it can't go unpaid. And I think it's going to be for my generation now, what education was for my generation 30 years ago, a government push of money into that system one way or the other. But now we're seeing some senators and many analysts saying that the current version of the healthcare bill is dead. That's obviously... What does that mean for healthcare stocks? That means we'll find another thing. We'll find some other way of doing it. As instead, the demand for healthcare is there. People will pay for it. And staying alive is very high on most people's list of things to do. So they'll pay for themselves. And I think what happens is America is basically funding the rest of the world for R&D as far as healthcare is concerned. I think we keep doing that. I think the government probably steps up a little bit. But timing that is all but impossible. All right, John Manley from Wells Fargo Funds. Thanks for coming back with us.