Market Update

Stocks continue to tack on gains driven in large part by the AI build-out.  Valuations are at historically high levels and caution is being thrown to the wind.  Will it matter?  Someday, but that day continues to not be today, and it may not be for a while.  Right now, the promise of future revenue has seen companies as large as Oracle deliver 30% overnight returns. A Fed easing cycle, driven by concerns over rising unemployment, seems to be incoming despite above target inflation.  While some point out that high unemployment and high inflation is simply stagflation, investors are partying like it's 1999.  The longer-term negative divergences that showed up earlier this summer are still there but it's difficult to find much short-term fault with the market.  Credit markets remain strong and while a 5-10% dip could appear at any time, it seems increasingly likely that would be a "dip to buy," rather than a reason to panic.