My preferred way to play this market is 'long stocks, long volatility', says Joe Tigay

Core Viewpoint - The tech sector is experiencing significant growth, drawing parallels to the late 1990s tech boom, with concerns about whether this growth represents a bubble [2][3][5]. Economic Context - The current market is influenced by a Federal Reserve easing cycle, which began in 2024, leading to rising asset prices [4][7]. - Recent economic data indicates strong GDP growth, with upgrades to 2026 GDP forecasts, suggesting continued market momentum if economic indicators remain positive [7][8]. Market Dynamics - Asset prices are historically high, which may indicate a bubble, but there are no definitive rules on stock valuations or market corrections [6][9]. - External factors such as geopolitical concerns and potential government shutdowns could introduce volatility into the market [9]. Investment Strategy - A focus on long positions in mega-cap tech stocks is recommended, as these companies possess substantial cash reserves and are well-positioned for the ongoing AI boom [11][12]. - Utilities are also considered a potential area for investment due to their role in powering data centers, indicating a dual focus on tech and utility sectors [13].