'BEND BUT DON'T BREAK': Brian Belski explains why he still believes in this market

• Inflation concerns are overblown, primarily due to money supply, and falling oil prices will help ease these pressures.
• Liquidity is not an issue, as private wealth holds significant cash, and tech corrections are expected to lead to sector rotation rather than a broad market collapse.
• Earnings growth is strong and broadening beyond just the tech sector, supporting a bullish outlook for small and mid-cap stocks.
• Portfolio positioning includes underweighting the 'Magnificent 7' and being overweight in communication services, financials, industrials, and utilities.

Brian Belski, CEO and CIO of Humilis Investment Strategies, maintains a 'bend but don't break' outlook on the market, dismissing concerns about inflation, liquidity, and a broad tech-led crash. He highlights strong underlying earnings growth and advises investors to be underweight the 'Magnificent 7' tech stocks while being overweight in communication services, financials, industrials, and utilities, which he sees as benefiting from current market dynamics and AI.