The two main issues we are concerned about as we have discussed repeatedly are the yield on the 10-Year Treasury, which currently is contained at around 4.5%. It does not allow a significant move in the market without earnings growth. We want to see some Federal Government spending cuts! The other issue is what is happening in the Mega Cap Technology stocks and DeepSeek. Clearly this was an eye-opening event for META and MSFT that reported earnings last week. The CEO of MSFT called DeepSeek a “real innovation”. This is opening spending up to more apps or software, rather than hardware.

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