The David Lin Report Stocks Are Rotating Hard; This Is Where Smart Money Is Going | Sam Burns
Nov 24, 2025
Sam Burns, Chief Strategist at Mill Street Research, dives into the shifting labor market and economic growth dynamics. He discusses the shift from speculative investments to earnings-driven companies. Burns highlights concerns over rising unemployment and potential layoffs against a backdrop of mixed labor signals. He emphasizes the arms race in AI spending and warns of the risks involved. Lastly, he provides insights on positioning within tech, encouraging investments in resilient equities while navigating inflation complexities.
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Tech Earnings Will Lead Market Direction
- Big-cap tech earnings will likely determine major index direction into 2026 because they drive both price and earnings estimates.
- The Fed is torn between inflation and labor market signals, so only modest cuts are likely.
Mixed Labor Data Masks Weakness
- Labor data are mixed: hiring has slowed but widespread layoffs are limited, producing a less dynamic labor market.
- Declining labor supply (immigration) masks weakness, complicating Fed decisions.
Watch Investment, Expect Hiring Pauses
- Expect companies to limit new hiring and pause projects rather than launch mass layoffs while spending holds up.
- Watch corporate investment outside tech for signs projects resume when policy clarity returns.