The David Lin Report White-Collar Wipeout: Economy Enter ‘Pivotal Time’ As Markets Rotate | David Busch
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Feb 23, 2026 David Busch, CIO of Trajan Wealth and value-focused portfolio manager, discusses how tariffs, rising core inflation, and AI infrastructure are reshaping markets. He covers sector rotation from big tech into value, materials, industrials and utilities. Labor shifts from AI automation and implications for consumer spending and fixed-income positioning round out the conversation.
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Tariffs And Core PCE Fueled Market Volatility
- Tariff increases and the Fed's core PCE spike combined to drive recent market volatility.
- David Busch links Trump's weekend tariff hikes to a concurrent core PCE rise to 3%, forcing markets to reprice potential rate cuts.
Tilt Toward Staples When Consumers Cut Back
- Reweight portfolios toward consumer staples and value if consumers tighten spending.
- Busch suggests overweighting staples, Walmart, and Yum Brands as consumers shift from luxury to lower-priced goods amid rising delinquencies.
AI CapEx Is Rotating Markets Toward Value And Infrastructure
- AI infrastructure capex will shift sector leadership from Big Tech to materials, industrials, energy, and utilities.
- Busch sees hyperscalers' AI buildouts creating a rotation into sectors that supply and power data centers and chips.