The economy is doing pretty well, and the reason is not complicated. We are in an AI industrial revolution and it is just getting started. The economy is being driven by technology, and it is going to keep being driven by technology.
Look at how it is being paid for, because the financing structure tells you how durable it is. It is being financed through Wall Street. It is being paid for by people who need income investments and are buying the paper that funds the build-out. And the government is very much involved. Talk to people in the tech sector and they will tell you that government investment in this area is a matter of national security. I believe that is true, and it changes the character of the spending. This is not a consumer fad cycle.
None of that makes it a straight line. There will be ups and downs, and there will be stretches where leadership rotates and the part of the sector everyone owned last quarter is the part lagging this quarter. My view is that if you are overweight technology, and you do the work to read what is going on and understand which sectors are doing well at which times, you do just fine in this market. I could be wrong about the pace. I am not persuaded by the argument that this revolution is anywhere close to finished.
