1. Tech stocks are cheap.

Unlike prior quarters, where valuations and expectations were high, the tech sector enters this cycle at its lowest multiple in years.
We may be “approaching peak AI pessimism,” according to Gary Paulin of Northern Trust Asset Management, highlighting that compute capacity remains scarce and demand will likely exceed supply for years.

2. European telecom stocks are a safe haven for investors.

The Stoxx 600 Telecom Index is up 56% over the past two years, well ahead of the Stoxx 600’s 21% advance.
Such sustained outperformance is rare for a sector whose returns trailed all others in the decade to 2024.
But, at a time when investors are fretting over an inflation shock and AI threats, the group’s recession-resistant attributes and ownership of physical infrastructure stand out.
Telecom companies on average project an increase of about 13% in free cash flow for 2026, according to Berenberg analysts. While low revenue growth persists as a challenge for telcos, cash flow estimates are helped by cost savings and reduced capital spending as fiber buildouts come to an end.
There’s also an expectation that industry consolidation will reduce competition.

3. Gold reserves having eclipsed central bank holdings of dollar assets.

If the US is no longer seen as reliable a guarantor of stability and security, then there is a diminshing incentive to trade in dollars and recycle them back into the US. The dollar carousel that has underpinned the global monetary system is coming under increasingly grave strain.
Gold’s ascendancy is but one warning, but others are getting louder.
Global trade in dollars has fallen to around 40% in the last few years while that in euros and the yuan has picked up; dollar-denominated cross-border loans have slipped back to 60% of the global total; central bank holdings of Treasuries are now less than their holdings of gold; and the dollar as a share of global FX and gold reserves is falling rapidly.

4. Amazon doubles down on AI spending.

Amazon.com CEO Andy Jassy dismissed fears of an artificial intelligence bubble and told investors they shouldn't expect any slowdown in the firm's AI investments.
Jassy says he has the figures to back up the huge spending.
As of today, around 40% of Amazon's AI compute capacity comes from its custom chips.
Only Alphabet/Google is better than Amazon in integrating its custom chips, but AWS's scale is multiples that of Google Cloud.
This will generate significant efficiencies for them as AI workloads shift from training to inference. Plus, growth will likely surprise on the upside as AWS remains the preferred training and inference partner of Anthropic, whose revenue tripled in Q1.

5. Biotech beat the broader market by roughly 20 percentage points in 2025.

Given pharma’s insatiable demand to replenish its pipeline, as well as “cheap” biotech valuations, there is good reason to think both dealmaking and biotech share-price gains can keep going.

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