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Sevens Report: AI Optimism Is Giving Way to Existential Fears

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Tom Essaye says investors now worry AI could undermine entire business models.

Big Moves Have Rocked Stocks. There Might Be More to Come.

Yet “now investors fear it’ll go too far,” as Sevens Report President Tom Essaye writes. “Put simply, the concern now is that AI will boost productivity so much that it won’t just lead to reduced head count, it will lead to the elimination of the entire company and business!”

“AI spending is damaging the financial footing of the biggest tech companies in the markets and with no end to the spending in sight, this is making investors nervous that free cash flow from these companies will be depressed for years, all on the massive bet that AI is widely and aggressively adopted by the population,” writes Essaye. And don’t forget the rapidly growing Chinese competition.

Also, click here to view the full article published in Barron’s on February 25th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Sevens Report: Small-Cap Rally May Accelerate in 2026

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Tyler Richey says improving macro trends could fuel further gains in smaller stocks.

Most and least shorted REIT stocks with up to $2B market cap as of mid-Feb

Small-cap stocks are off to a strong start in 2026, significantly outperforming large-cap benchmarks. While the S&P 500 has hovered slightly in negative territory year to date, small-cap indexes have posted solid gains, reflecting renewed investor appetite for risk.

According to Tyler Richey, co-editor at Sevens Report Research, the rally in smaller companies could intensify as the year progresses. With inflation trending lower, interest-rate cuts looming, and economic conditions remaining relatively stable, the macro backdrop appears increasingly supportive for small caps.

Improving financial conditions tend to benefit smaller firms disproportionately, as they are often more sensitive to borrowing costs and domestic economic growth. If expectations for monetary easing materialize, that could further strengthen the rotation into the segment.

As positioning shifts and macro conditions evolve, Sevens Report suggests small caps could remain an area of focus for investors seeking performance beyond mega-cap stocks.

Also, click here to view the full article published in Seeking Alpha on February 16th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Sevens Report’s Essaye Warns Tech Investors on AI Uncertainty

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Tom Essaye says skepticism around the AI boom is rising and weakness shouldn’t be dismissed.

Tech Investors Urged to Exercise Caution

Sevens Report President Tom Essaye is cautioning technology investors as uncertainty builds around the sustainability of the artificial intelligence-driven rally that has defined the past three years.

While Essaye notes the Nasdaq has not yet fallen enough to threaten the broader market, he argues that skepticism surrounding AI is reaching levels not seen during this bull cycle. He warns against brushing off recent weakness as a routine pullback, saying there are legitimate questions emerging about whether the boom can maintain its current trajectory.

Those concerns were amplified after Cisco Systems signaled potential margin pressure tied to ongoing memory-chip shortages, sending its shares sharply lower. The reaction highlights how sensitive investors have become to signs that elevated spending and supply constraints could weigh on profitability.

In a recent note, Essaye outlined several key risks: whether companies can sustain heavy AI-related capital expenditures, how long investors will tolerate delayed earnings payoffs, whether AI could cannibalize existing tech segments, and whether infrastructure constraints — particularly around data centers — may limit growth.

Given this backdrop, Essaye suggests investors consider diversifying beyond mega-cap technology names. As volatility increases and skepticism grows, the once-dominant AI trade may face a more challenging environment than it has at any point in the current bull market.

Also, click here to view the full article published on Finance News Network on February 13th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Sevens Report: Tech Can Rally, but AI Dominance Is Uncertain

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Tom Essaye says software ETF IGV must stabilize before AI fears ease.

In a Broader Rally, Tech Can Still Win—But Maybe Not Dominate

Technology stocks may continue to participate in a broader market rally, but their dominance is no longer assured, according to Sevens Report President Tom Essaye.

Essaye says growing concerns that artificial intelligence could cannibalize parts of the software industry have created the most uncertain backdrop for the AI-driven bull market in three years. He points to the iShares Expanded Tech-Software Sector ETF (IGV) as a key barometer, arguing that the fund must stabilize before broader confidence in AI stocks can return.

In his view, IGV holding above last week’s low is critical. Without that technical support, skepticism surrounding AI spending, earnings sustainability, and lofty valuations could intensify. Essaye cautions investors against dismissing the recent weakness as routine volatility, noting that legitimate questions are emerging about whether expectations have outpaced reality.

That said, Sevens Report does not believe the outlook for AI and tech has turned outright negative. Major technology companies are still delivering earnings growth, but elevated expectations and aggressive capital-expenditure plans leave less room for error.

For investors seeking diversification, Essaye suggests looking beyond mega-cap tech to equal-weight, value, developed international, and low-volatility strategies. While tech can still win in a broader rally, its leadership may no longer be automatic.

Also, click here to view the full article published in Barron’s on February 12th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Sevens Report: U.S.-Iran Talks Leave Geopolitical Risks Elevated

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Tyler Richey says stalled negotiations keep markets on edge despite open channels.

Oil markets are on edge over elevated risks of a U.S. military strike against Iran this weekend

Geopolitical risks remain largely unchanged following the latest U.S.-Iran discussions, according to Sevens Report Research. Co-editor Tyler Richey said the talks failed to deliver progress on the core issues facing both sides, leaving tensions at roughly the same level as before the meetings.

Richey noted that while the lack of breakthroughs is disappointing, the fact that negotiations did not collapse entirely still matters for markets. Open communication channels reduce the odds of an immediate escalation, but they do not eliminate near-term risks.

With tensions still elevated, Richey said the possibility of military action cannot be dismissed, particularly over a short time horizon. That uncertainty helps explain why many traders are reluctant to hold short positions heading into the weekend, when headline risk is highest.

He added that newly announced sanctions are best viewed as incremental pressure designed to accelerate negotiations rather than a signal of imminent conflict. For now, Sevens Report believes geopolitical uncertainty will remain a background risk factor rather than a dominant market driver unless energy supplies are directly threatened.

Also, click here to view the full article published in MarketWatch on February 6th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Sevens Report: 10-Year Yield Remains ‘Neutral’ for Stocks

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Tom Essaye says the 4.20% range keeps markets stable — for now.

10-Treasury yield rises, but remains in range seen as ‘neutral’ for stocks

Treasury yields were rising Monday morning, with the rate on the 10-year note reversing its decline from last week but still trading in a range that Sevens Report Research called “neutral” for the stock market.

“The 10-year Treasury yield has been well behaved through this recent stock market volatility and in the 4.20% range it remains neutral for markets generally speaking,” Tom Essaye, founder and president of Sevens Report Research, wrote in a note Monday. “That needs to continue, because a sudden plunge below 4.00% would signal growth concerns, while a jump above 4.50% would imply rising inflation risks and both would add incremental headwinds on stocks (and possibly bonds).”

Also, click here to view the full article published in MarketWatch on February 9th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Sevens Report: Gold and Silver Drop After Unsustainable Parabolic Run

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Tom Essaye says last month’s precious-metals surge broke under its own weight.

Gold, silver losses ease after ‘disturbing’ safe haven sell-off

Gold and silver prices stabilized Monday after a violent selloff that reversed a parabolic rally and caught many investors off guard. According to Sevens Report Research founder Tom Essaye, the breakdown was inevitable given how stretched prices had become.

Essaye said the speed and magnitude of last week’s gains left the precious metals market vulnerable to a sharp correction. Once selling began, momentum flipped quickly as traders recognized that the recent advance was detached from sustainable fundamentals.

While the move was dramatic, Sevens views it as a technical reset rather than a signal that the broader bullish case for precious metals is broken. The firm has consistently cautioned that steep, momentum-driven rallies often end abruptly once confidence cracks, especially in crowded trades.

From here, price stability and consolidation will be key in determining whether gold and silver can rebuild upside momentum or remain vulnerable to additional volatility.

Also, click here to view the full article published in Yahoo Finance on February 2nd, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Sevens Report Warns Weaker Dollar Is Supercharging a Run-Hot Economy

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Sevens says Trump-linked dollar weakness is amplifying growth and inflation risks.

How Trump creates another ’run-hot’ influence on the economy

The latest Sevens Report argues that the U.S. economy is being pushed further into a “run-hot” phase as the dollar slides to multi-year lows. According to the firm, President Trump’s dismissal of recent dollar weakness effectively signaled tolerance — if not support — for further depreciation, accelerating trends already in place.

Sevens notes that fiscal stimulus, pressure for lower rates, deregulation, and efforts to pull in foreign capital have already tilted the economy toward overheating. A weaker currency compounds that backdrop by ensuring more liquidity is chasing a limited supply of goods and services, keeping inflation pressures elevated even as growth remains strong.

The report outlines three key transmission channels. First, a softer dollar raises import costs, lifting prices on consumer goods in an import-dependent economy. Second, it boosts earnings for multinational companies, helping explain recent outperformance in technology and consumer discretionary stocks. Third, it inflates the value of real assets such as gold, oil, and other commodities that cannot be diluted like fiat currencies.

Sevens cautions that the dollar’s roughly 11% decline over the past year is far from benign. While markets have absorbed the move so far, a faster slide toward the low 90s could unsettle investors and intensify the risk of sustained inflation alongside resilient growth.

Also, click here to view the full article published in Investing.com on January 29th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

The Bar Has Been Lowered Says Tom Essaye

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Tom Essaye Interviewed On Schwab Network

UAL Earnings Seek to Reverse Airline Caution Signaled by DAL

“The bar has been lowered” for United Airlines (UAL) after Delta Airlines (DAL) signaled caution in its earnings, says Tom Essaye. He sees investors focusing on guidance and whether United can weather global volatility. Tom tells investors to listen for commentary surrounding international travel, price cuts, and fuel impacts. Tom White helps investors navigate the options front through an example trade.

Also, click here to view the full interview with Schwab Network published on January 20th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tom Essaye Quoted in Yahoo Finance: “If AI goes south on us, tech will go.”

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Tom Essaye tells Yahoo Finance, “If AI goes south on us, tech will go.”

AI took investors on a date in 2025. In 2026, analysts say it’s time to foot the bill.

“If AI goes south on us, tech will go,” Tom Essaye, founder and president of Sevens Report, told Yahoo Finance in an interview.

In a new report, “Taking Stock of the Four Pillars of the Rally Ahead of 2026,” Essaye observed that the initial unified enthusiasm for AI has become “fractured.” The industry is moving into a period where the market is aggressively sorting winners and losers. While memory plays like Micron (MU) have surged over 241% year to date, Essaye argued that former darlings like Oracle (ORCL) have faced more scrutiny as investors demand immediate ROI.

Also, click here to view the full article on Yahoo Finance published on January 5th, 2026. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.