EY's Daco on why 'historic shocks' and polarization haven't derailed the economy

Greg Daco, chief economist at EY, says the economy has been dealing with historic and conflicting economic shocks, but if it can continue the current capital investment cycle and see the productivity gains promised by artificial intelligence, it should be able to remain resilient in pushing past wobbles and weakness. Daco, who currently serves as the president of the National Association for Business Economics, discusses his concerns that growing polarization between different consumers and businesses are increasing the fragility of what he calls "the A pillars of economic growth" — affluent consumers, A.I. investment and asset-price appreciation economic growth — and how that creates "pockets of risk" that could change the cycle.

Todd Rosenbluth, head of research at VettaFi, leans into signs that the stock market has been broadening to make an equal-weight fund his ETF of the Week, noting that the balanced construction creates a very different take on the market than the traditional index fund covering the same ground.

Mike Bailey, director of research at FBB Capital Partners, brings his "beat and replace" methodology back to the Market Call, discussing how secular change in industries and economies creates the upgrading opportunities he looks for.