Teeter: AI is shifting from build-out to utilization, and that’s exciting

Market Trends & Investment Strategies - AI leadership is shifting from buildout and chips to utilization phase, potentially impacting earnings [2] - Tech stocks have experienced outflows for six consecutive weeks, with the last four-week rolling average being the lowest since June 2021 [3] - Investors are becoming more selective in the tech sector, potentially impacting energy and chip stocks due to valuation and execution speed concerns [4][5] - Bonds are seen as compelling with yields around 4%, offering stability and income potential, leading to a more neutral posture [10][12] - Broadening out in the market, with areas like healthcare and small cap showing potential for gains in the years ahead [14] Economic Outlook - The economy is growing but slowing, with stall speed below 15% posing a risk to earnings growth [8] - The pace of Federal Reserve rate cuts is crucial as the economy decelerates [9] - Job cuts and a potentially weaker jobs report next month raise concerns about the broader economy [7][8] Potential Risks - High valuations in equities require perfect earnings delivery [12] - Upcoming decisions on tariffs and potential weakness in the labor market due to AI pose risks [13]