The latest Market in a Minute from PVG Asset Management highlights that equity markets remain buoyant despite growing valuation concerns and liquidity tightening. Technology stocks continue to dominate, driving the S&P 500 and NASDAQ higher year-to-date. However, PVG notes over-concentration risk in tech, suggesting that upcoming earnings may not justify current lofty prices. While AMD and OpenAI’s chip deal has fueled enthusiasm in the AI sector, the firm maintains that Google remains best positioned in AI technology. They also expect innovation to shift toward “edge computing” as a solution to data center energy constraints. The report warns that liquidity remains tight and that markets, heavily influenced by retail investors, could see a meaningful correction before another advance.

The commentary also points to bright spots in healthcare, where major pharmaceutical companies are partnering with the TrumpRx platform to bypass traditional PBMs—potentially revitalizing drug and biotech stocks. Amazon’s AWS division is cited as a potential comeback story, while the broader market could benefit from eventual Federal Reserve rate cuts that may broaden participation across sectors. Weak labor data, including an ADP-reported job loss of 32,000 in September, reflects a cooling economy, yet PVG expects a near-term “melt-up” as rate cuts approach and IPO activity resurges. Overall, PVG maintains a cautiously optimistic tone, seeing opportunities in select sectors like healthcare and technology but urging prudence amid stretched valuations and slowing fundamentals.

‍