Monthly Report
Monthly TAA: AI IS The Business Cycle
Over the first half of 2025, AI capex outpaced both consumption and all other investments in its contribution to US growth. Like all other capex cycles this one will end in tears. However, the indicators we track suggest that AI capex can continue supporting growth and markets for now. Remain Neutral on equities. Upgrade Health Care to Overweight and downgrade Consumer Staples to Neutral. Buy tail risk protection.
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Public-private allocation guidance, capital market assumptions, and strategic insight to help investors build forward-looking portfolios they can act on and defend.
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