The world is in the midst of what could be an era-defining evolution. The opportunities brought about by AI are incredibly exciting but it is coming at a time of increased fragility across a number of other larger economic forces. We are undergoing a period where every year seems to bring a new set of significant macro and geopolitical events, which creates a challenging backdrop for investors.
These events are occurring with increased frequency and we think this is due to a number of larger structural forces at play, including a changing geopolitical landscape, a seismic technological shift, an increasingly polarized political landscape, and higher amounts of leverage in the system. But through it all, economic growth is holding up and public equity market performance has been strong. We think this dichotomy can be explained by AI-related growth and spend, as well as the amount of monetary and fiscal support that is at play.
