Look, I think so much of what happens to the equity market into the back end of this year is going to be about earnings. One of the key things that we've anchored on has been that most of the return this year has been driven by earnings. This week, because of the big tech names, the mega caps everyone holds, are reporting. It's going to be really important for sentiment, perhaps more than the Fed policy decision. The market is pricing in close to 100% probability of a 25 basis point cut. We need to hear consistently from market leaders and companies leading their sectors that they're getting benefits from AI and technology investments made throughout 2025. They have great hope for what that will translate into 2026, citing productivity gains and enhancements that will lead to better earnings and stronger margins over quarters ahead.

It's good for both, but the expectation from the street and buy side is that we will see continuous upward revisions to capex spending targets. Flatlining would be a negative sentiment hit. We want to see makers of hardware and enablers expect higher revenues than analysts forecast. Adoption rate of AI and technology should continue increasing across sectors with productivity enhancements and expectations for further margin enhancement into 2026, though it may not be easy later in the cycle.

It's uncomfortable to want to own these large cap leaders. I'd like to see a broader set of opportunities. Financial services, especially banks, have significant ownership now. I'm watching industrials and manufacturers heading into next year. That cyclical area is less well owned. We're watching closely for guidance from those companies as they report.

The US still has the highest quality companies and looks strongest fundamentally. We focus on earnings revision ratios; momentum favors the US over the rest of the world. We're watching expected earnings improvements in Japan driven by government change and fiscal stimulus, but more idiosyncratic opportunities appear in Europe and other regions. We have an overweight in China, liking its tech story with government support encouraging investment, competing with the US. We expect China to perform well over the next six months.