Market resilience and tech upgrade cycle (with Jonathan Ferro, Lisa Brownwitz, Amory Horton)

John Foltz-Fist

Markets are resilient, not robust. Every challenge (economic data, Middle East) is overcome by resilience: earnings better than expected, debt better than thought. Fundamentals remain very positive.

We watch fundamentals, not technicians. We are intermediate to longer-term investors. Tech is on an upgrade cycle; headlines against tech are overblown.

John Foltz-Fist

There is a real question about AI spending sustainability, but it puts players on notice. There will be failures, but this is not like the internet bubble—tech is deeply embedded in business and consumer life.

Markets love uncertainty for traders, but intermediate to long-term investors should look for babies thrown out with bathwater.

John Foltz-Fist

AI monetization is a 2026 story. Changes happen much faster now due to news flow. Markets discount news quickly, keeping everyone honest.

I've been in the business 43 years; structure has changed dramatically due to social media and technology.

John Foltz-Fist

To hedge AI trade risk, we barbell portfolios: tech, telecom, utilities, all 11 sectors. This diversification has weathered significant volatility over 9 years.

John Foltz-Fist

Rotation to equal weight and Russell 2000 can continue, but it's not the end for large caps. There is room for large, mid, and small caps. Be selective, avoid junk and value traps. We like growth at a reasonable price (GARP).

In tech, we own names that support the big names, not necessarily the big names themselves.

John Foltz-Fist

This market is different from previous cycles. It's about fear, greed, and need. Private investors are now more important than institutions, investing seriously for retirement due to lack of defined benefit plans and uncertain social security.

Private investors come in earlier and stay longer; time in market is more important than timing the market.

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