I think a little bit of both. We're seeing the AI train go from power and utilities, which have seen a big rerating, now moving into tooling, industrials, and healthcare. We upgraded healthcare to overweight on the premise of less margin risk and AI helping efficiency. Different areas could benefit, but consumption may be challenged as jobs in white collar age 25 to 45 are harder to find, leading us to downgrade consumer discretionary from overweight to equal weight.

The bar is really high. The market cap to GDP of S&P 500 is at record highs. Risks are not priced in. There's an information vacuum around government data. Hyperscalers are becoming more asset intensive with higher depreciation expense which often means lower multiples. Companies raising capital to spend on capex has historically led to underperformance. The AI projects have ROI, but the market environment differs from post-liberation day.

Yes. Our year-end target is below current levels (6,300). We expect continued positive returns longer term, largely from market breadth broadening. But tariff and policy uncertainty could cause companies to pause capital commitments and hiring, as happened in April, potentially delaying market broadening into 2026. That’s what we’re watching.