We're in the beginning of an AI boom, says Defiance ETF's Sylvia Jablonski

Consumer Market Insights - The high-end consumer market is performing well, while lower-end consumers are struggling, indicating a bifurcated consumer landscape [1] - Overall consumer demand remains strong, supported by a resilient job market and potentially steadying inflation, which is driving market growth [2][11] - There is an expectation for increased disposable income among consumers, which could further stimulate market activity [3] AI Investment Trends - The current phase is characterized as the beginning of an AI boom, with AI expected to permeate various market sectors [4] - Capital expenditures (capex) have been increasing, leading to margin efficiencies and cost reductions, particularly benefiting companies like Nvidia [5] - AI investments are anticipated to expand into infrastructure and modern warfare applications, indicating diverse growth opportunities [6][7] Market Sentiment and Earnings Outlook - Market reactions to growth spending can be volatile, with historical examples showing shifts in investor sentiment [8][9] - Earnings season is critical for assessing the performance of major corporations, particularly those heavily investing in AI [10] - Expectations for year-over-year growth in earnings per share (EPS) and revenues for key companies are set at 12% and 14.8% respectively, which could bolster consumer confidence in AI-driven growth [11] Gold and Alternative Investments - The rise in gold prices is attributed to concerns over government debt and currency stability, despite equities also rallying [13][14] - Gold is viewed as a defensive hedge within investment portfolios, alongside cryptocurrencies like Bitcoin, which are also gaining traction among investors [15]