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Bets it will be consolidated if shares stay down here. Can buy some here.

There's been a lack of market breadth. Until the last quarter of 2025, it's been all tech. But now tech has been weaker than other sectors. Eventually, the semis will be weak. Nearly every other sector has gained strength, which makes him bullish. This rotation is healthy. In the past month or so, tech has been underperforming other sectors. Value is returning to the market and diversification has returned. The market is healthier than 6 months ago.

We've seen some improvement in healthcare and some of the healthcare ETFs.

They didn't have a good quarter, but are rolling back prices which should attract customers.

Commodities, Wages, and Inflation
The basic inputs to a lot of things can drive inflation. Looking at broad commodity indexes back to 1991, we see that most commodity prices actually have not grown after taking into account the cost of money. So how is this causing inflation? The six o'clock news keeps making that connection.

Most people think about the $$ they put in the gas tank and what they just spent at the grocery store. And they feel inflation.

The real inflation that drives costs longer term, though, comes from wages. It's the biggest cost of input to most industries. In the service economy of NA (70% services), wages matter a lot. Agricultural, corn, wheat prices have been pretty stable over history. Technology is creating a lot of disinflation, as costs are driven lower by technology doing the work of farm workers.

He brought along a chart of wages in the US. Note the bottoming in 2011. What happened then? The average baby boomer turned 65. The dynamics in the labor force are changing. More and more people are retiring, we have less immigration, and the average family is having fewer than 2 children. Demographics are bad for sources of labour. The future of supply/demand in the labour market is really going to tell us where inflation will be. The new base for inflation is unlikely to be 2%.

AI can be a big part of driving labour productivity. Can AI cut your grass? It actually can now! AI will take a lot of jobs, while others will be created. As we go through earnings season, he's looking for what companies tell us about wages.

The U.S. banks report tomorrow. He expects earnings to be the same as Q1's. Unless something bad happened in the economy in Q1, then the earnings follow trend. Overall, the US economy is strong with AI spending while poorer Americans have seen wage gains. Expectations are high though. If the oil price spikes again, it won't effect US companies that much, because the US market is largely tech driven. US small caps have seen a huge rally as money flows out of semis. We might be in an extended cycle for semis.