Financial Sense Newshour Jim Welsh: Market Fundamentals Robust—But Iran War, Oil Shock Major Wild Cards
Feb 28, 2026
Jim Welsh, market strategist and MacroTides founder, gives a technical deep-dive on market internals. He contrasts breadth strength with choppy headline indices. He highlights key S&P levels and rotation into cyclicals and midcaps. He flags Iran-driven oil risk and dollar and Treasury moves as major wild cards.
AI Snips
Chapters
Transcript
Episode notes
AI Is Driving Capital Intensity Across Infrastructure
- AI is morphing from a chip story into a capital intensity and infrastructure story affecting energy, utilities, and construction.
- Jim Puplava cites CoreWeave, AMD, Dell and increased data center CapEx tightening supply chains beyond GPUs.
Internals Show Market Strength Despite Sideways S&P
- The market's headline indexes look stagnant but internals are strong with the advance-decline line and equal-weight S&P making new highs.
- Jim Welsh points to rotation from MAG7 and software into materials, industrials, and mid-caps as the reason the market hasn't broken down.
Rotate Into Cyclicals As Leadership Broadens
- Reallocate from over-owned mega-cap growth to cyclical, value, and mid-cap names as the economy shows strength and leadership broadens.
- Jim Welsh points out money is rotating into Dow names, industrials, materials and mid-cap stocks on improving data.