It is ‘REVENGE' of the value stocks, finance professor explains

• January inflation cooled to 2.4% (year-over-year), lower than estimates, driven by cheaper gas and used vehicles.
• January saw a surprise jump of 130K jobs added (vs 70K estimated), with unemployment at 4.3%, indicating a resilient economy.
• Professor Siegel believes the rotation from big tech to value stocks is real, driven by AI's rapid and uncertain impact on tech winners, benefiting smaller and value-oriented companies.
• Cybersecurity, especially in the age of AI, is a significant concern, posing a threat to financial systems.
• The futures market still shows a June rate cut in play, with Siegel advocating for the Fed funds rate to drop to the low 3s (two more cuts).

Wharton finance professor Jeremy Siegel discusses positive economic data, including cooling inflation and strong job growth, which he believes supports a rotation from big tech to value stocks. He highlights AI's disruptive potential, favoring value stocks that are beginning to leverage it, but expresses concern over cybersecurity threats. Siegel also anticipates further Fed rate cuts, aiming for a Fed funds rate in the low 3s.