The Economy is moving to a New Place…

Over the past year the creation of AI and all the chips needed for it have been center stage. Now we move into the implementation stage, where growth will be a result of how individuals and companies improve their efficiency using AI. I expect small cap companies to be quicker to get results. They don’t have the management bureaucracy, pushback from managers trying to save their jobs, etc.

From an investor standpoint this is a rich opportunity in terms of small cap vs large cap valuations.

Here we fill in some trading projection details that can be added to our Annual Forecast from the beginning of the year. The pattern that we expect remains unchanged, a first quarter high, second quarter decline, third quarter start of the Real Economy Rally.