Last week, there was more evidence of rotation, which will be masked but unchanged in the down sessions, as the biggest names meander or drift lower. Keep in mind that 71% of the S&P 500 (SPX) closed higher last Thursday. The question is whether this is temporary or long-lasting. Right now, I think it’s the former, but it still requires some adjustments.

Less exposure to momentum is worth considering.

Mag Seven Undervalued

The “Mag Seven” is undervalued, and there are signs the market is beginning to anticipate a time when the mega spenders slow down and reap rewards for those investments.

It's early, but we look for these signs to either take advantage of it now or somewhere down the road.

Meanwhile, the artificial intelligence (AI) buildout is just beginning, and fortunes remain to be made.  Even the most bearish firm on the Street upped its targets on memory names last week, along with beneficiaries of cheaper gasoline.

Fourth of July Postscript

It's easy to see why younger Americans think there is a de facto promise of a greater life than the prior generation. The irony is that the average Gen Z earns more money, adjusted for inflation, than any prior generation.

Yes, things are expensive, but so are unnecessary things like 95% of the apps on their phones.  Moreover, vacations and nice restaurants were once considered luxuries. As we begin the journey into the next 250 years of America, I would like to see labor receive a greater share of the pie, but not by punishing success.

For me, the stock market is the great equalizer. Anyone can get involved and make their own fortunes.