Sees broadening as wonderful with three reasons: 1) Strong Q4 earnings beats, 2) Yield curve steepening reducing recession probability per NY Fed indicator, 3) Large cap margin pressure from rising CapEx.

Late cycle typically gets bubbly with speculative non-earning stocks, but market self-corrects when this emerges. Biggest risk is blow-off stage. High earnings estimates, GDP outlook, and bullish sentiment create dangerous concoction ripe for disappointment.

Financials and industrials offer opportunities after selling off. As free cash flow turns negative for large companies, markets won't like it despite lower multiples.

Uncertain about timing but suggests focusing on companies performing well with reasonable multiples where shorts can't easily sell off even on beats.