Core Viewpoint - The market is experiencing a shift in leadership from US equities to international equities, with a notable movement of capital towards dividend-paying companies and a change in China's policy to support growth rather than control [1]. Group 1: Market Trends - There is significant momentum in the AI and tech sectors, leading investors to engage in higher beta stocks, which are considered riskier investments [2]. - The macroeconomic environment is favorable, characterized by low interest rates and reduced regulation, which is expected to support dividend stock investments [3]. - International markets have outperformed US markets year-to-date, with a 25% increase compared to the S&P's 14% [4]. Group 2: Investment Strategies - A pivot is anticipated in market leadership, as the US markets have outperformed for over 14 years, suggesting a potential catch-up trade in the US, particularly in AI investments [5]. - Investing in international markets offers diversification benefits, as gains in the US are concentrated in a few tech companies, while international investments provide broader exposure and attractive valuations [6]. Group 3: Bond Market Insights - Expectations indicate that interest rates will continue to decline, which could positively impact the housing market due to its high GDP multiplier effect [8]. - Investors are likely to shift focus from the $7.7 trillion currently in money markets towards quality companies that offer solid dividends [8].

Market Trends & Shifts - Market leadership is shifting from US equities towards international equities [1] - Capital is moving away from cash towards dividend-paying companies [1] - China's policy is changing from control towards supporting growth [1] - Investors are shifting focus away from the $77 trillion sitting in money markets [8] Investment Opportunities & Strategies - International markets offer broader exposure and attractive valuations from a risk-adjusted return perspective [6] - US markets are trading at premium valuations, suggesting a potential pivot towards relative value areas [3] - Consider USUS ETF, which excludes America, with top holdings outside of the tech trade, showing year-to-date outperformance of 25% compared to the S&P's 14% [4] Macroeconomic Factors - Low rates and less regulation create a strong macro tailwind [3] - Bonus depreciation is reducing the effective corporate tax rate to approximately 15% [3] - Rate cuts are anticipated, potentially leading to a pivot in market focus [3] - Lower rates are expected to be a tailwind for the housing market, which has a high GDP multiplier [8] AI & Tech Sector - Momentum in the market is heavily influenced by the AI and tech trade [2] - Gains in the US market are concentrated in a handful of tech companies [6]