Broadening Out…

The market is broadening out as of this week, especially yesterday. Our Climate Change Model is showing that second stage climate stocks, the climate application stocks, are starting to gain on first stage Chip and AI stocks that have been building the base since June of 2022.

We expect this direction to accelerate as summer heat shows its face this summer.

I will continue to point out as we have since June of 2022, while the US is by its very nature a consumer country, consumer stocks will have a smaller relative footprint in this climate-based market.

One other point on Small Caps vs Large Caps,

In a sense it is a technology play. We are at a time where growth using technology is more easily adopted in the small caps than the large caps. Large caps have a huge corporate bureaucracy to overcome before they can fully use the technology available. For small firms the iPhone is where everything is centered today, on the apps. For small cap firms, AI can feed into this without the firm doing anything beyond downloading another app.

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