Equity market technicals are extraordinary and earnings numbers are powerful. The parts of the economy driving equities (tech, high-end consumer) are doing quite well, citing 97% YoY earnings growth in semis. Technicals show scarcity: potential $200B IPO calendar vs. $1T in buybacks means 'not enough stock to buy.'

Contrasts with housing and lower incomes not being in good shape. Notes this dynamic is completely different from Treasury market which faces $520B/week supply.

No contradiction due to unprecedented productivity revolution. Companies growing revenue 4-10% while keeping labor static/down and reducing COGS leads to higher operating margins and ROIC. AI/data utilization builds moats and boosts productivity/earnings, though not beneficial for broad population.

Notes automation/AI hasn't fully kicked in yet. This dynamic affects interest rate transmission.