Economic Expansion, Emerging Markets Outperformance, & Meta Sells Excess Compute
07/02/2026From the Anatomy of a Recession podcast, Jeff Schulze, Head of Economic and Market Strategy, with Clearbridge Investments gave the following assessments; From the Recession Dashboard, currently 11 of the 12 indicators they follow are in the green or expansion zone. There is only one red signal, or recession signal, and that is surrounding Job Sentiment. Jeff believes one of the more notable investment themes is Emerging Markets. Earnings estimates have risen sharply. Taiwan and Korea may benefit from semiconductor demand. Commodity producing countries such as Chile, Brazil and Indonesia could benefit from stronger metal demand. He also cited a potentially weaker US dollar, attractive valuations and global economic shifts as reasons international markets could outperform over time. Bottom line, Schulze is highly optimistic as the economy appears resilient, corporate earnings remain strong, productivity gains from AI and investment spending could support growth, and that market pullbacks should be viewed as buying opportunities, rather than a sign of coming recession. (Anatomy of a Recession Update: Resilience dated 06/15/26 with Jeffrey Schulze CFA, Head of Economic and Market Strategy with ClearBridge Investments)
"Meta Compute: Meta wants to sell its excess computing power in a move that will likely put it in competition with its Magnificent 7 rivals Amazon, Google, and Microsoft. The move comes as Meta has been spending heavily on building its own data centers to develop its AI models. The plan involves selling access to its AI models hosted on its own infrastructure, as well as raw computing power. This shift reinforces our view that hyperscalers will eventually behave more like utilities as companies transition from growth to mature stages. (Daily Comment dated 07/02/26 by Patrick Fearon-Hernandez CFA and Thomas Wash of Confluence Investment Management LLC
America has proven that men and women not only can make their own history, but they can make it as they please, with circumstances chosen by themselves. Happy 4th of July to you all. Let’s take time this week to step back and realize just how fortunate we are to live in a time and place where the fire of invention still burns hot, course corrections (however messy they may be) still take place, and the future remains bright. May we continue to honor the legacy of those who came before us by striving to uphold the principles that have made this country a beacon of hope and freedom for the world. (America’s 3.5-Second Miracle dated 07/02/26 by Brian S. Wesbury, Chief Economist, and Robert Stein CFA, Dep. Chief Economist, with First Trust Advisors LP)
"Meta Compute: Meta wants to sell its excess computing power in a move that will likely put it in competition with its Magnificent 7 rivals Amazon, Google, and Microsoft. The move comes as Meta has been spending heavily on building its own data centers to develop its AI models. The plan involves selling access to its AI models hosted on its own infrastructure, as well as raw computing power. This shift reinforces our view that hyperscalers will eventually behave more like utilities as companies transition from growth to mature stages. (Daily Comment dated 07/02/26 by Patrick Fearon-Hernandez CFA and Thomas Wash of Confluence Investment Management LLC
America has proven that men and women not only can make their own history, but they can make it as they please, with circumstances chosen by themselves. Happy 4th of July to you all. Let’s take time this week to step back and realize just how fortunate we are to live in a time and place where the fire of invention still burns hot, course corrections (however messy they may be) still take place, and the future remains bright. May we continue to honor the legacy of those who came before us by striving to uphold the principles that have made this country a beacon of hope and freedom for the world. (America’s 3.5-Second Miracle dated 07/02/26 by Brian S. Wesbury, Chief Economist, and Robert Stein CFA, Dep. Chief Economist, with First Trust Advisors LP)