The market continues to be unshakable by factors that have totally derailed it in the past.

Bond yields are soaring.

Crude oil is soaring.

And the Federal Reserve has become a political mess that could soon lose whatever credibility it has left.

When the market gets into this kind of zone, the “experts” (mostly curmudgeons and dyed-in-the-wool bears) say it's unhinged and irrational, but I think the stock market is more rational now than any time I’ve ever seen it.

We’ve seen a swift retreat in oil since the Iran conflict, on good news. Once this conflict is over, I see oil and yields coming down.

The American Formula

What these folks refuse to grasp is the AI Revolution and the United States' fundamental strength.

We are a wealthy nation with the mechanism to remain wealthy as it fosters innovation, talent, and rewards success.

Wall Street analysts railed against capex spending, but hyperscalers are spending even more because the stakes are beyond the limited imagination of the street and their old-school ways of determining value (too short-sighted).

Hyperscalers are spending, and the American consumer is spending,

The reaction the Mag Seven reports is better than I thought it would be, but this market is still looking for the next spark.