Status Quo

Although the macro backdrop isn’t perfect and the equity setup isn’t ideal, the US economy and the S&P 500 continue to hold their ground. The conflict with Iran resists resolution but the latest flare up is in line with our geopolitical experts’ script, and they are not concerned that it heralds a material escalation. Equity investors have evinced a little discomfort with mushrooming AI investment projections, but we think the hyperscalers’ budgeted expenditures are safe for the next few quarters.

Doug discussed Iran, AI, and other items in investors’ focus, along with the following key drivers:

• The labor market
• Consumption
• Inflation
• Monetary policy
• Corporate earnings