Q&A with: BRI Wealth Management

Anika Sidhika

Wed, December 10, 2025 astatine 10:41 AM CST 4 min read

Toni Meadows: "Equity markets person been dominated by an AI golden unreserved successful 2025 and this leaves valuations looking costly by humanities comparison. After years of US dominance, the equity marketplace enactment successful planetary indices is highly concentrated some successful presumption of determination divided and the apical 10 stocks wrong the US market. In humanities terms, this usually leads to a large rotation oregon reversal astatine immoderate point, but the question remains ‘is it antithetic this clip owed to the unprecedented scope of the technological revolution, driven by data, bandwidth and computing power?’ Thus far, US net person amazed connected the upside and investors person cheered each AI related deal. Even 2nd derivative trades person done well, arsenic investors question vulnerability to companies that are positioned to payment from the monolithic AI infrastructure build-out presently underway.

"In enactment of this marketplace environment, economical maturation has been sufficient, if not spectacular, and authorities argumentation has been supportive. Interest rates person been chopped by the occidental cardinal banks, adjacent arsenic ostentation has proven to beryllium ‘sticky’. Given the precocious banal of outstanding indebtedness and fund deficits - the size of which are usually much suited to a recession than dilatory maturation environments, determination is small country to manoeuvre with respect to fiscal argumentation support. In fact, the satellite should astir apt get utilized to periodic volatility driven by changing sentiment successful the indebtedness markets. We saw this with the marketplace absorption to ‘Liberation Day’ successful April erstwhile Trump unveiled the grade of his tariff policy. Investors are presently sanguine astir the interaction of tariffs connected economical maturation and inflation, and we would not expect that to alteration successful 2026. However, fixed the combative benignant of the US President successful negotiations of immoderate kind, it is apt determination volition beryllium policy-induced volatility successful markets astatine immoderate constituent successful 2026.

"High starting valuations some successful equity and indebtedness markets, wherever spreads are tight, volition mean that investors look a partition of worry. On the 1 hand, fearfulness of missing retired volition thrust prices higher arsenic investors look to the semipermanent skyline and the benefits of AI connected firm earnings. But successful the short-term, overmuch of the ample sums of wealth being spent connected AI and its infrastructure volition not spot a instrumentality that justifies the outlay. Also, the interconnected quality of the relationships and spending betwixt the ample US tech names increases the imaginable interaction of immoderate disappointments on the way. So, we expect determination to beryllium periods of volatility successful 2026, and beyond, arsenic investors grapple with the seemingly precocious rhythm characteristics of planetary markets, framed wrong the transformational imaginable of Artificial Intelligence.