Market Outlook - November 2025

Looking ahead to the close of 2025, the pace of technological change and its impact on the investment landscape have never been more apparent. The adoption of artificial intelligence is happening at a speed that far surpasses previous innovations—while it took the telephone 75 years to reach 100 million users, ChatGPT achieved this milestone in just 2 months. This exponential acceleration in user adoption is driving real capital investment and reshaping business models across industries.

Industry leaders are forecasting a 1,000-fold increase in AI compute capacity over the next four to five years, and the potential for productivity gains is significant. Historically, U.S. productivity growth has averaged around 1.9% annually—a remarkably consistent figure over time. With AI-driven automation and analytics becoming more deeply integrated into the economy, there is real potential for this rate to accelerate, unlocking new levels of efficiency and growth. Companies that leverage data and cloud infrastructure are positioned to benefit most from these trends, generating strong revenue growth and operating leverage without bearing the full cost of infrastructure build-out.

With investors currently underweight equities and economic fundamentals remaining firm, the environment is constructive for diversified portfolios. The combination of resilient consumer demand, healthy labor markets, and transformative technology trends sets the stage for continued growth. As always, maintaining discipline and focusing on quality remains key to capturing upside while managing risk.

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