Capital spending announcements are up 50-70%, hundreds of billions of dollars, but shortages still exist. This investor enthusiasm creates a virtuous, though concentrated, cycle.

One company's spending is another's revenue. This is the lever to shift focus from the Magnificent Seven to the broader market, to stop talking about the 'forgotten 493' and just talk about the S&P 500.

For the last three years, secular (tech) stocks have 'massacred' cyclical stocks. This changed last summer as investors questioned growth sustainability. Now, with inflation 'wrinkles' returning, companies reliant on distant earnings become less valuable, and energy becomes hot.

Refers to a technical 'consolidation in time, more so than price' for tech.

Mentions talk of '$85 is the new $65' for long-term oil price assumptions. The US is relatively insulated as a producer/exporter but is a refined products importer.

Higher oil hasn't dented short-term earnings expectations. Companies are implementing 'surcharges' (seen as price hikes by investors, hoped to be temporary by customers). Combines 5% near-term inflation expectations with slowing real GDP, resulting in similar nominal GDP, which is positive for financial assets.

Underestimating US corporate sector profitability is perilous. Companies have navigated tariff and policy uncertainty. JPMorgan analysts forecast high-teens earnings growth vs. 11.5% last year.

Companies are finding a way despite Middle East conflict and policy pivots. As an equity investor, he is an optimist: 'companies will find a way to make money.'