Terri Spath

The U.S. stock market is driven by powerful AI-driven optimism, real productivity gains, strong earnings from large-cap tech, and a meaningful capex cycle. Despite inflation sensitivity, oil price risk, and a narrowing rally, the market has the capacity to continue marching higher. Over the next six months, the market will be higher than today, though with volatility from macro risks. Broad exposure to U.S. equities is warranted.

Japan offers a compelling structural story: corporate governance reforms, rising share buybacks, greater focus on ROE, and the end of deflation have fundamentally changed the investment case. The yen appreciation is a risk, but the long-term structural improvements outweigh cyclical headwinds; if underweight Japan, you are missing a major opportunity.

Look for broader sector participation where valuations are more reasonable: financials benefit from economic resilience, utilities offer dividends plus growth from AI data center power demand, and healthcare is a strong, relatively inexpensive sector.

Look for broader sector participation where valuations are more reasonable: financials benefit from economic resilience, utilities offer dividends plus growth from AI data center power demand, and healthcare is a strong, relatively inexpensive sector.