Summary
- Mega-cap tech stocks are driving S&P 500 highs despite rising rates, inflation, and economic headwinds.
- Corporate profit growth and AI-driven productivity are offsetting input cost pressures, sustaining near-record margins.
- Consumer spending remains robust, defying low sentiment and inflation, but risks for lower-to-middle income households are mounting.
- The current bull market may persist until AI capital spending peaks, but overinvestment risks a future correction or bear market.
- This idea was discussed in more depth with members of my private investing community, The Portfolio Architect. Learn More »
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A handful of mega-cap technology stocks drove the S&P 500 to another new all-time high, despite numerous economic headwinds that seem to be gaining strength. They include rising interest rates, WTI crude oil over $100, no expectations for rate cuts this year, the chance of a
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