Google and Apple just picked a better decade

The sector has continued to underperform expectations, leaving investors disappointed. But this disappointment should not obscure the shifting dynamics that may favor a brighter outlook in the year ahead.

After a secular rise in equity prices in 2023 and 2024, extended valuations and high concentration laid the groundwork for factors to stabilize market excesses. In the context of risk efficiency, the factor-driven narrative becomes even more compelling.

Business investment is sluggish around the world, though the US is an exception.