
Overall, I want to remind investors the U.S. remains an economic oasis and is the primary driver of worldwide economic growth.
The U.S. is leading the world, the AI and data center boom cannot be stopped, and the boom will persist for at least the next three years.
Warsh’s first job is to build a consensus on the FOMC, so it may take Warsh some time to reel in many FOMC members who like to chat with the media.
S&P 500 earnings are up a stunning 29.3% versus a year ago, with eight of 11 S&P sectors sporting double-digit earnings increases.
S&P 500 is in the midst of the strongest earnings environment in seven years, and the S&P 500’s earnings are forecasted to rise 21.5% in 2026.
Since it will take up to 3 years to fulfill current data center order backlogs, I anticipate this sales and earnings momentum to persist well towards 2029.
There is undoubtedly a new world order emerging now, with the U.S. dominating world energy markets. Meanwhile, China’s military influence is waning.
Economist Ed Yardeni headlined this current AI-fueled rally as a surge “To Infinity and Beyond!” I agree.
Overall, investors are increasingly confident that the U.S. is the safest place in the world to invest.
Fed Chair Jerome Powell’s second four-year term ends May 15th, and Senate hearings for incoming Fed Chair Kevin Warsh are nearing a positive conclusion.