Lower rates will probably be the best thing for small caps, says Michael Landsberg

Market Trends & Economic Outlook - The market may see a similar situation to a year ago with potential for rising inflation and two-year Treasury yields around 35%, possibly moving higher [1] - Economic growth alongside rising inflation isn't necessarily negative [1] - Small caps are potentially underowned, with futures short on Russell, suggesting lower rates could benefit them [1] Investment Strategies & Portfolio Allocation - The firm suggests not being long bonds and considering a lower bond allocation, with alternatives like gold for balance [1] - Diversification is crucial, with potential opportunities in international markets (e g, China) and small caps [1] - Consider diversifying from the "Magnificent Seven" (Mag 7) due to their concentrated exposure [1] Individual Stock Picks & Sector Focus - Axon, a maker of body cams and tasers, is highlighted as a potentially good investment with 30% type growth [1] - AI is a significant theme for the next 3-5 years, but diversification beyond chip manufacturers is recommended, including data centers, cooling systems, and energy companies [1][2] Valuation & Risk Management - Overconcentration in a few AI chip names carries significant risk [2] - The traditional valuation game may not always work, as seen with Nvidia and Broadcom, where earnings eventually justified high valuations [1] - Stocks hitting highs often continue to make new highs, while stocks hitting lows can potentially go to zero [1]