Great to be here.

Yeah, we have been selectively bullish before in the US, especially around technology and artificial intelligence, but now we think the macro picture is turning and things are going to be brighter on the horizon. We have seen over the last 12 months that economic growth has been sluggish and inflation sticky. But as we look into the next 12 months, we see that the US economy is poised for reaceleration and that inflation is likely to remain contained. We saw it in the CPI numbers this morning. In our view, there are three disinflationary tendencies over the next 12 months: we are going to start to comp the tariffs — tariff impact has not been as large as expected — secondly, wage inflation is going to come down, and lastly also shelter inflation. So that keeps us more optimistic that inflation is going to be contained while economic growth we think is poised to accelerate because of both monetary and fiscal stimulus that is going to hit in Q1 and Q2.

Valuations are certainly extended. We are in the top decile according to most valuation metrics, but we don't think we're in a bubble yet. Bubbles have three typical factors: loose financial conditions — which we have now, including the possibility of an end to QT which could ease conditions further; a strong transformational innovation narrative, which AI continues to provide; and price becoming reflexive, which we are not there yet, as skepticism remains among investors. This creates a good backdrop for the market to climb the so-called wall of worry.

We need price to become much more dissociated from fundamentals, positioning to be more extended both on retail and institutional side, and a much stronger positive narrative on truly transformational technology.

Yes, we like US healthcare as a diversifier to AI, and also a beneficiary because AI can reduce drug development and clinical trial costs. Policy headwinds have lessened, valuations are cheap, and detocking from COVID is ending, so these factors make us bullish on healthcare alongside AI.