This month, JP discusses what’s fueling recent market performance before taking a deeper dive into two major factors at play for investors: AI spending and what’s happening in the bond market.

On the surface, AI hyperscalers have grown their cash balances, but when you look beneath, a different picture emerges. Capital expenditures are making a significant impact on their free cash flow. JP shares what he believes this says about the health of these companies and the implications for future growth.

Meanwhile, as the deficit exceeds $40 trillion, long-term Treasury bond yields have risen to multi-year highs, which could affect the equity market as the cost of cash goes up. The Treasury has initiated a bond buyback program in response, which JP compares with the Federal Reserve’s 2011 Operation Twist, but with some significant differences.

He wraps up the month’s commentary with key factors he’s watching in the months ahead.