Market Trends & Dynamics - Equity markets experienced volatility in 2025, with the NASDAQ initially rising nearly 20% year-to-date before a 25% collapse from February to early April [1] - AI is a dominant theme, expanding beyond chip makers to companies leveraging AI or becoming takeover targets [2] - Utilities and energy sectors have surged due to future power demands for AI and quantum computing [2] Monetary Policy & Economic Outlook - The Federal Reserve cut rates by 25 basis points on September 17th, despite inflation near 27% [3] - The prevailing view is that the Fed will continue easing into 2026 to counterbalance a weakening labor market [3] Risk Assessment - The risk of a market correction is present due to the strong rally [3] - Overextended markets, even with compelling fundamentals, are vulnerable to sharp declines [4] - The internet boom in the early 2000s serves as a reminder of potential market corrections, with the NASDAQ losing over 75% of its value [4]