Jeffrey Small on Fed's Balancing Act & Mag 7's CapEx Potential

• Strong jobs data (130,000) reinforces economic resilience, potentially de-emphasizing the need for aggressive Fed rate cuts.
• The Fed should adopt a more visionary, consumer-focused approach, capable of lowering rates without causing an inflation calamity.
• Massive AI CapEx by tech giants signifies a long-term investment cycle, with benefits in profitability and efficiencies expected to accelerate revenues.
• Market sentiment is stretched, leading to profit-taking and a broadening market beyond the 'Magnificent Seven' as the economy performs well.
• Tesla is viewed as building infrastructure for a new ecosystem, encompassing electric grids, energy storage, autonomous mobility, and AI robotics.

Jeffrey Small analyzes the resilient economy, strong jobs data, and the Federal Reserve's potential course of action. He highlights the massive AI CapEx by mega-cap tech companies as a significant long-term investment cycle, drawing parallels to Amazon's early days, despite current stretched valuations and profit-taking.