Important information
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All investing involves risk, including the risk of loss.
Past performance does not guarantee future results.
Investments cannot be made directly in an index.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
Artificial intelligence (AI) technology companies are sensitive to specific risks such as small markets, business cycle changes, economic growth, technological progress, obsolescence, and regulation. These companies may have limited products, markets, resources, or personnel, making their securities more volatile, especially for smaller start-ups. Rapid technological changes can adversely affect their results. AI companies often rely on patents, copyrights, trademarks, and trade secrets to protect their technology, but there’s no guarantee these protections will be sufficient. Significant research and development (R&D) spending doesn’t ensure product or service success.
The Bloomberg Magnificent 7 Index is an equal-dollar-weighted benchmark of the Magnificent 7 companies: Microsoft, Apple, NVIDIA, Amazon, Meta, Tesla, and Alphabet.
The Bloomberg US Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes US dollar-denominated securities publicly issued by US and non-US industrial, utility, and financial issuers.
A bull market is an environment in which stock prices are rising or are expected to rise.
The Conference Board’s Consumer Confidence Index® is published monthly, based on a survey of US consumers’ buying attitudes and buying intentions.
The Consumer Price Index (CPI) measures the change in consumer prices and is a commonly cited measure of inflation.
Earnings per share (EPS) refers to a company’s total earnings divided by the number of outstanding shares.
The fed funds implied rate is the difference between the spot rate and the futures rate, which is an interest rate that can be calculated for any security with a futures contract.
The Employment Cost Index details changes in US businesses’ cost of labor. It is prepared quarterly by the Bureau of Labor Statistics. An investment cannot be made into an index.
Gross domestic product (GDP) is a broad indicator of a region’s economic activity, measuring the monetary value of all the finished goods and services produced in that region over a specified time period.
Monetary easing refers to the lowering of interest rates and deposit ratios by central banks.
In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic, and political conditions.
Inflation is the rate at which the general price level for goods and services is increasing.
Investments focused on a particular industry or sector are subject to greater risk and can be more impacted by market volatility than more diversified investments.
Many products and services offered in technology-related industries are subject to rapid obsolescence, which may lower the value of the issuers.
Option-adjusted spread (OAS) is the yield spread that must be added to a benchmark yield curve to discount a security’s payments to match its market price, using a dynamic pricing model that accounts for embedded options.
The price/earnings-to-growth (PEG) ratio is a valuation metric that considers a company’s price-to-earnings ratio relative to its expected earnings growth rate.
The price-to-earnings (P/E) ratio measures a stock’s valuation by dividing its share price by its earnings per share.
Purchasing Managers’ Indexes (PMI) are based on monthly surveys of companies worldwide and gauge business conditions within the manufacturing and services sectors.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
Tightening monetary policy includes actions by a central bank to curb inflation.
Treasury Inflation-Protected Securities (TIPS) are US Treasury securities that are indexed to inflation.
West Texas Intermediate (WTI) is a type of light, sweet crude oil that comes from the US.
The opinions referenced above are those of the author as of July 24, 2026. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties, and assumptions; there can be no assurance that actual results will not differ materially from expectations.