Earnings season should help with portfolio rebalancing, says Vios Advisors' MIchael Bapis

Core Viewpoint - The market demonstrates resilience despite fears and upward revisions in earnings, with corporate performance remaining strong and tariffs not significantly impacting market stability [1][2][10]. Market Resilience - The market has shown a quick recovery from a 3% pullback, indicating that corporate resilience is absorbing fears and challenges [2][10]. - Strong earnings reports from companies contribute to a positive outlook, with a notable absence of significant downgrades in expectations for tech earnings [8][11]. Technology Sector Insights - The technology sector, particularly AI-related companies, is viewed as a critical area for growth, with expectations that it could lead to a global technological revolution [4][5]. - There is a notable dispersion in performance among major tech stocks, with some showing flat performance year-to-date while others have increased by over 30% [8]. Investment Strategy - A balanced portfolio is recommended, with allocations of 40-45% in equities, 30-40% in fixed income, and 25-35% in alternative investments to mitigate risks in a down market [14]. - Companies are increasing capital expenditures (capex) to stay competitive, which may slightly impact earnings but is necessary for long-term growth [11][12]. Economic Indicators - Current economic indicators are positive, with strong earnings and capital spending suggesting a favorable environment for investment over the next 6 to 12 months [12]. - The market is characterized by a healthy mix of discussions and fluctuations, indicating a robust dialogue among investors [6][10].