US large-cap equities should keep rising because tailwinds far outweigh headwinds, making any dip a buy. Endless money printing inevitably flows into equities, the AI revolution is arriving with robotics close behind, and S&P companies are reporting surging earnings beats. The AI and robotics revolution isn't remotely priced in, as labor costs trend toward zero while corporate profits keep rising. Elliott wave calls for a historic top miss this broader picture. x.com 

The AI arms race is accelerating after President Trump rejected calls for an AI slowdown, per the FT, saying that whoever wins AI wins. That supports the S&P 500 heading to $1,000. x.com 

US stocks face a potentially bigger selloff as rising inflation compounds concerns about AI spending. PCE inflation reached a four-month high of 3.6%, increasing pressure on the Fed to raise rates; Alphabet shares fell after disappointing earnings, slowing ad growth and more than $51 billion of quarterly capital investment. x.com 

US large caps and the strongest AI names can rip higher after the Fed's rate hike pushed stocks down to critical support. If SPY holds above the mid-750s this week, it could rise above 765 over the next couple of weeks, implying 15-25%+ gains in AI stocks such as Marvell, Bloom Energy, Nebius, Intel, Nvidia, AMD, Dell, HPE and Qualcomm. Tech names Meta, Alphabet, Apple and Microsoft also look bullish as rotations continue. x.com 

US stocks broadly are undervalued because most of AI's economic value flows to the businesses consuming tokens, not the token producers. AI agents do tasks far more cheaply than human labor, so value creation exceeds value capture by 50:1 or more, lifting aggregate earnings. S&P 500 earnings growth should accelerate beyond historical norms, in step with model labs' revenue. 2026 EPS revisions already outpace the norm, inflecting as Claude Code spread in January, even with CAPE at 42x. x.com  … Show more

The S&P 500 rally is a concentration bet because earnings growth is coming from very few companies, while AI productivity gains are not spreading across the broader economy. Nvidia and Micron drive 34% of expected Q3 earnings growth, and ten companies account for two-thirds. Apollo's revenue-per-worker chart shows gains for the Magnificent Seven but little for the other 493 S&P 500 companies; most stocks that reflect the broader economy are down. x.com  x.com  x.com 

S&P 500 stocks look cheap relative to expected earnings as forecasts grow faster than share prices. Forward P/E has fallen below 19, its lowest since 2023 and slightly below its 10-year average, despite the index nearing all-time highs. Goldman Sachs' earnings beat, with net income up 29% year over year, suggests earnings support extends beyond AI. x.com 

US large-cap equities stay a buy because an uninterrupted AI narrative is strong enough to overcome adverse macro developments. Core inflation in the high 2s or low 3s is not a big risk; stocks, the Fed and a sideways 10-year yield show little concern. As long as AI capex is not slowing, macro remains a dominated risk. A pullback is overdue, but its likelier catalyst is AI-related, such as a megacap like Meta cutting capex or open models reviving ROI questions, which would change the view. x.com  … Show more

S&P 500 earnings look flattered by AI spending: hundreds of billions in AI capex become immediate revenue for sellers of chips, servers and cloud capacity, while buyers amortize the cost over years. Revenue explodes now and the pain shows up later, so Wall Street raises estimates and stocks get even more expensive. That looks worryingly like a dot-com 2.0, and the risk is what happens when AI spending slows or stops. x.com 

Energy infrastructure looks like the next memory trade, as the AI race shifts from software to energy. China produces about three times as much energy as the US, and Musk and Jensen Huang said every 5GW of new energy adds about 1% to US GDP. AI needs power, cooling and infrastructure, so the companies enabling the buildout, from Vistra, Constellation and GE Vernova to Bloom Energy, Vertiv, BWXT, Cameco, Enphase and Tesla, are worth accumulating on weakness. x.com  x.com