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].

Let's start with your word of the day. Your word of the day today is inflection. What inflection are you seeing.>> So inflection in terms of market leadership shifting from US equities more towards international equities. Inflection also when it comes to movement of capital more away from cash more towards dividend paying companies and inflection also when it comes to China where their policy is changing more from control more towards supporting growth. >> Okay.I know you gave us these notes yesterday. I do ...