The market is driven by short-term technicals and positioning, leading to whipsaw moves. A correction via rotation is possible, not a sharp index decline. The Fed is in a timeout, but inflation is broadening beyond oil, making a rate hike more likely than a cut, though likely after the midterms. The bond market's reaction to any easing is a key constraint.

Inflation may be peaking with this print above 4%, but getting back to 2% will take time. The economy is stable, not re-accelerating, with a K-shaped consumer. The Fed's debate includes growth, not just inflation. Global strategy favors selective participation in secular AI trends (tech, infrastructure) and cyclical areas like Japan and Europe industrials/banks.

The space industry is growing with government and commercial demand for launch, lunar missions, and national security. Firefly is focused on execution, increasing delivery cadence, and leveraging its own launch capabilities as a key moat. The company is well-positioned for programs like the Moon Base initiative and Golden Dome.