AI and Pie: A Thanksgiving Market Update

Kelly:

If we could choose a theme for 2025, it would be gratitude and artificial intelligence.

AI has dominated conversations everywhere—from our portfolio managers to Baird’s CEO. We’re grateful to witness this transformative moment in technology and to help you navigate what it means for the economy, corporate earnings, and daily life.

This week, Nvidia once again beat earnings expectations, highlighting how quickly this space is evolving. While some worry this momentum could resemble past tech bubbles, we rely on data and research for clarity. Our partners at DSM believe AI adoption is still in its early stages, valuations remain reasonable, and the growth opportunity is long term.

Looking ahead, it’s clear this theme will continue shaping markets well into 2026 and beyond. With that, I’ll turn it over to Alex.

Alex:

Thank you, Kelly. Now to the broader stock market: valuations remain elevated, but strong corporate profits have helped absorb these levels. In Q3, S&P 500 earnings grew 13.5% year over year, with revenues up 8%. Historically, when earnings growth outpaces GDP by this margin, the economy tends to remain on solid footing.

Looking forward to 2026, consensus forecasts have improved, calling for 6% revenue growth and 14% profit growth next year. With that, I’ll hand it over to Tom.

Tom:

Thank you, Alex. On a positive note, job numbers came in stronger than expected—a good sign for the economy. As we enter this season of gratitude, we want to pause and thank you, our amazing clients. Your trust and partnership mean the world to us.
From all of us here, have a wonderful and happy Thanksgiving.

MODIFIED HOLIDAY OFFICE HOURS

Our office will observe the following schedule changes:

Early Closures

• Wednesday, November 26 – 2:30 PM
• Friday, November 29 – 12:00 PM
• Wednesday, December 24 – 2:00 PM
• Wednesday, December 31 – 3:00 PM

Full Closures

• Thursday, November 27 (Thanksgiving)
• Thursday, December 25 (Christmas Day)
• Thursday, January 1 (New Year’s Day)

Thank you for your understanding, and we wish you a wonderful holiday season!