Much of the economic uncertainty regarding tariffs is now over, since President Trump wrapped up major trade deals on his recent Asia trip. We are now in the midst of accelerating GDP growth, with fewer workers expected to result in soaring productivity gains. In the meantime, since the Fed has an unemployment mandate, I am expecting more Fed key interest rate cuts, including at its December FOMC meeting.Another reason that the Fed needs to continue to cut key interest rates is that the Institute of Supply Management (ISM) announced that its manufacturing index declined to 48.7 in October, down from 49.1 in September. This is the eighth consecutive month that the ISM manufacturing index has been below 50, which signals a contraction. The Production component slipped to 48.2 in October, down from 51 in September. The New Orders, New Export Orders, Backlog of Orders, and Customers’ Inventories components all improved in October, but all remained below 50, which is not a good sign. Overall, only 6 of the 18 industries that ISM surveyed reported an expansion in October.The good news is that growth stocks continue to announce wave after wave of positive third-quarter results. November is historically a strong month for small to mid-capitalization stocks, so I am expecting an early “January effect” and that we will rally right up to Thanksgiving. This should help set the stage for a strong year-end rally as well as a great start for the New Year. I should add that the holidays are a happy time of year and that positive sentiment also helps to boost investor sentiment.I remain amazed that my average small-to-mid capitalization stock is trading at only 3.4 times forecasted earnings, so my stocks remain grossly undervalued compared to large capitalization stocks. Please remember that small to mid-capitalization stocks behave like “bunnies” that “sit” and “hop,” so get ready for some more upside surprises between now and Thanksgiving.I am also keenly aware that the Top 10% of the stocks in the S&P 500 now account for approximately 42% of the index, but I am also proud to recommend Nvidia (NVDA) and Palantir Technologies (PLTR). Despite the growing evidence that AI and data centers are accelerating and dominating explosive GDP growth, the efficiency and productivity gains that are being implemented should help many companies boost their underlying profitability.We are now in the midst of the strongest earnings announcement season in the past four years, and earnings momentum is accelerating despite a federal government shutdown over healthcare spending cuts. Frankly, even though I expect the federal government shutdown to end soon, economic productivity actually rose during the shutdown.The simple fact of the matter is that the trillions of dollars in onshoring for data centers, plus the automotive, pharmaceutical, and semiconductor industries, is unprecedented. This onshoring is expected to result in a massive economic boom that will result in over 5% annual GDP growth in 2026. Since small to mid-capitalization stocks are predominantly domestic companies, they should naturally prosper during this accelerating economic boom.Ironically, the U.S. economic boom is not expected to be inflationary, since the U.S. dollar is firming up and starting to offset any impact of tariffs on imports. Furthermore, China remains in a deflationary environment, and we are importing that deflation. Shrinking households throughout Asia and Northern Europe have caused economic stagnation that is deflationary. Furthermore, the European Union’s (EU) Net Zero goals have caused energy costs to soar and are systematically destroying manufacturing industries, like their automotive sector.