Johnny Hughes discusses the major market shifts shaping 2025, noting that portfolios have not fully adapted to a world driven by AI innovation and rising international opportunities. He tackles the question of whether current AI enthusiasm is a bubble or a genuine productivity boom, pointing out that while private valuations look stretched, credit markets remain calm.
The point is made that the global economy is supported by strong US consumers, fiscal stimulus, and improving productivity, but the US market is increasingly concentrated in a small group of AI leaders.
Hughes touches on the growing opportunities outside the US, noting that European, Japanese, and emerging-market equities now offer better value, with earnings growth expected to align more closely across regions.
