April’s surge is powerful, but a +10.4% monthly gain for the S&P 500 and +14.8% for the Nasdaq Composite also raises the odds of near-term consolidation.
My view:
Will the bull run continue in May?
Likely yes, but choppier. Momentum, AI capex visibility, and resilient earnings remain supportive. However, after such a steep vertical move, markets often rotate rather than move straight up.
Chase or wait?
Prefer selective buying on pullbacks (3 to 7%), rather than chasing broad index highs. Risk/reward is less attractive after a euphoric run.
Which sector catches up?
1. Financials, especially quality banks if rates stay elevated
2. Healthcare, lagging but defensive growth looks attractive
3. Industrials / power infrastructure, key beneficiaries of AI buildout (grid, cooling, electrical equipment)
4. Selective small caps, if liquidity broadens
Most crowded trade now: mega-cap AI.
Most interesting catch-up trade: old economy names quietly feeding the AI boom, power, storage, cooling, networking, utilities.
Bull market intact, but leadership may broaden beyond the usual Magnificent Seven.
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