"Stocks are booming all around the world"

1. Data centers vs. local economies. "Counties that build data centers are seeing new housing, higher home values, lower unemployment and more job growth..."

2. Schwab Trading Activity Index. "Schwab investors continued to buy in July despite a choppy market backdrop, lifting the [STAX] for a third straight month to its highest level since January 2022. In ETF and equity trading, Schwab clients tracked by STAX were net buyers by a two-to-one ratio, suggesting bullish sentiment remained firm, particularly among self-directed traders."

3. Investment Manager Index. "The headline indicator from a monthly survey of nearly 300 institutional investors managing funds in excess of $3,500bn, has risen in August to its most bullish level since January 2026."

4. Global breadth. "Stocks are booming all around the world. Not just in places that are capturing the chips or AI boom. Over 80% of country ETFs are over their 50-day moving average."

5. Earnings vs. valuation. "Note that in 1999 the earnings peak was already well in place, and all the gains came from valuations. That's the opposite of what we have today (for now at least)."

ICYMI