Investors are parsing fresh U.S. jobs data, steady economic growth and record equity valuations, while gold volatility and rising opposition to artificial intelligence infrastructure add new layers of uncertainty.
BNN Bloomberg spoke with Ross Healy, chairman of Strategic Analysis Corporation, who says the S&P 500 is approaching a new all-time valuation high even as a spreading “No AI in my backyard” movement across the United States could slow AI-related growth expectations.
Key Takeaways
- The latest U.S. jobs data suggest gradual labour market improvement, likely reducing pressure on the Federal Reserve to cut rates in the near term.
- The S&P 500 is showing signs of reaching and holding a new all-time valuation high, even as investors appear to downplay underlying valuation risks.
- Gold’s sharp pullback from recent highs reflects typical commodity volatility, while gold equities remain below prior peak valuations despite strong bullion prices.
- Strong performance in precious metals and industrial sectors can signal deeper balance sheet strains within the broader economy.
- Growing resistance to new AI server farms over electricity and water usage — dubbed “No AI in my backyard” — could slow infrastructure buildouts and challenge lofty AI stock valuations.
Read the full transcript below:
ANDREW: Let’s get perspective on today’s news from Ross Healy, CFA, at Strategic Analysis Corporation. Ross, great to see you as ever. Comment on these U.S. job numbers. Have you had a chance to check them out?
ROSS: Yes, I have, Andy. They are consistent with the trend that has now been in place for some time — broadly speaking, very, very slowly improving. After you’ve said that, though, they are probably just enough to put off the Fed doing a rate cut to preserve the job outlook. I think that would be the best way I would put it.
ANDREW: What is your feeling on the U.S. economy in general, Ross? We do have these imbalances between high-income and low-income people, and of course that has hurt results for some companies.
ROSS: Yes, we are fairly optimistic looking at the U.S. economy for this year. Nothing very exciting or flashy, but I think steady progress in the order of probably two, three or four per cent — something in that range. There is nothing, I think, to prevent that from occurring. And as I say, we are optimistic for 2026.
ANDREW: What is your feeling on gold, Ross? What signal is that sending, with gold hitting new record highs this year?
ROSS: Looking at gold is really interesting, Andy, because it spiked up to 5,600 or so, then dropped a sharp $1,000 or something in that order. In other words, it’s the kind of volatility you would expect when a commodity spikes to a new all-time high. After that, what has been going on is a slower, more steady increase on a daily basis in the price of gold.
What is really interesting about that is when we look at the stocks themselves, they ran up on that 5,600 move, dropped down and are now trading more cautiously than they had previously. In other words, the market has been spooked by that spike. However, when we take a look at earnings for the gold companies, I think they’re going to be real blockbuster blowouts, and I suspect investors will gain some confidence once again in the stock prices.
ANDREW: Would you be a buyer of big gold producers right now, though, Ross?
ROSS: Yes, I would. Particularly the really high-quality stocks. I always think of Alamos and Agnico Eagle, but at this juncture practically any gold stock, I think, is going to work out well. When you look back at the history of gold price movements, there’s the slow move and then you start going up the exponential curve. We haven’t quite seen that yet. We’re almost there. What happens in those cases is you suddenly get American investors starting to come in, and when they come in, then watch out. Things can get really, really interesting.
ANDREW: There’s local opposition in many parts of the U.S. to these new AI data centres. Partly, of course, there are concerns about local electricity rates going up and water usage in other parts of America. Is that an important feature? Do you think it could turn into a real roadblock for growth of AI?
ROSS: Yes, Andy. I think some of the biggest news comes from New York, where new AI server farms are being blocked by citizens and politicians alike, and that movement is spreading across the states. People are saying, “You’re not going to plug into our local electricity source and drive up the cost of electricity.” And where are you going to get 300,000 gallons of water every day to cool these things down?
I think there is now a real backlash. My son actually coined the term for it. He called it NAIMBY — not NIMBY — meaning “No AI in my backyard.” As I say, that is spreading across the states. So far, it does not appear to have particularly hit what I would call the AI stocks — the chip producers and so on. But if you slow down that hoped-for estimated growth by a substantial margin, which very much appears to be the case, then eventually there’s going to be quite a backlash, because these stocks are so expensive.
ANDREW: We’ve only got about 30 seconds left. Ross, Verizon is a stock you’re interested in right now. Tell us why. I’m sorry we’re so tight for time.
ROSS: That’s fine. Verizon has been growing very nicely and steadily all the way through and has a strong dividend yield. The stock got knocked down because of concerns about its growth, but the company has been working very hard to improve that, and the market now appears to be saying, yes, that’s going to be the case.
When we originally recommended the stock, we thought it probably had a good, solid upside of 33 per cent or more. If those numbers start to come through, which they are promising, then the stock is very cheap relative to its long-time highs and could move higher — maybe a lot higher.
ANDREW: Could we just put up that chart again? I don’t know if there’s a problem with it, but we just saw a spike in Verizon. It looks like — yes, I don’t know if that’s some artifact or data glitch. Anyway, thank you very much indeed. I really appreciate it, Ross.
ROSS: Okay, Andy, my pleasure.
ANDREW: Ross Healy, CFA, at Strategic Analysis Corporation.
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This BNN Bloomberg summary and transcript of the Feb. 11, 2026 interview with Ross Healy are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.