Anastasia Amoroso

The US should remain an overweight in portfolios given technological advances, productivity gains, and constructive tax policy. While international equities should be part of a diversified mix, the US core remains the primary overweight.

AI and technology are in early stages with accelerating momentum. Token usage has increased 14-fold in the last 12 months and is projected to grow 24 times in the next few years. Earnings surprises from the Mag Seven were 70-90%, lifting S&P 500 Q1 earnings growth from 15% to 27%. All roads lead back to tech, and investors should not ignore the AI theme.

Software CapEx has been slow, while Hardware CapEx is accelerating. Partners Group sold a data center portfolio but is reinvesting because they see continued growth. The AI trade is shifting from "AI Software" (which is easily disrupted) to "Hard Assets" (Data Centers, Power, Chips). You cannot disrupt a physical piece of equipment with a line of code. LONG. Capital flows are concentrating on the physical infrastructure required to run AI models. Overbuilding capacity leading to a glut in 2-3 years.