DC Lite #98

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1. Restaurant traffic. "Restaurant sales & traffic are the weakest since they were CLOSED during covid, and the GFC before that, these last 2 months!"

2. AI vs. GDP (I). "We estimate that generative AI could raise DM labor productivity growth by 1½pp per year over a 10-year adoption period (implying a cumulative increase in labor productivity levels of around 15%)."

3. Active managers vs. Value. "No more deep value equity investors left."

4. Sectors vs. yields. "Today's price action is another reminder that Energy is one of the better diversifiers in the post-pandemic world. Only sector that has tended to move with yields."

5. Back-to-back strong quarters. "If a 10% Q1 was rare, let’s now talk about back-to-back double digit quarters. We are looking at only the eighth time that has ever happened ... a year later stocks were higher six out of seven times and up 12.1% on average."