Mike MilliganFounder and CEO, 1.oak Financial · Founder and CEO, 1.oak Financial

Special Report 1929, 1999, 2026: AI Rally vs. The Consumer Slowdown (1999 Parallel?)

22 Sept 2026 · 1 min

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In this segment, Mike Milligan observes that AI capital‑expenditure (CapEx) is propelling large‑cap and mega‑cap stocks that are AI‑focused, while consumer‑oriented companies are lagging. He stresses that this trend does not prove a collapse of consumer demand, but serves as a research checklist for financial professionals. He advises advisors to probe clients about the impact of current living‑cost prices on their budgets and consider whether budgets need repricing. He also recommends evaluating whether companies are protecting profits during periods of heavy investment. Milligan cautions against assuming that every familiar consumer brand is broken, noting that an index rally does not answer all questions about household spending.

Chapters

We're seeing AI CapEx spending continue to lead large-cap, mega-cap stocks that rely on AI higher, while companies that are based on the consumer are going down. So this is not proof that the consumer has collapsed. It is a research checklist. For the financial professional listening, we need to start asking better questions when we're meeting with our clients. We need to ask here how they're feeling in light of the current prices they're paying to live. Does their budget need repricing based off those costs? And then we need to start looking at companies. Are they protecting profits during these investment times? The useful story is not every familiar brand is broken. It's an index rally does not answer every question about household spending.