Markets in Transition: Shifting Cycles, AI & Familiar Uncertainty

We’re in the final stretch of 2025, and it’s not leaving quietly. The year has delivered its fair share of surprises from renewed geopolitical tensions and tariff disputes to another bout of fiscal uncertainty. “Normal” isn’t exactly the word that comes to mind for this cycle.

Meanwhile, the flood of capital chasing Artificial Intelligence (AI) opportunities shows little sign of slowing. AI is no longer a new story; it’s an ongoing theme that continues to shape market sentiment and investment priorities. The real question dividing investors now is how long this wave of AI-driven momentum can last.

At the same time, central banks remain in focus as markets attempt to anticipate policy shifts. The challenge is whether policymakers can time their moves without being second-guessed or whether investors will once again run ahead of them. The so-called “puzzle” of balancing growth, inflation, and policy timing remains unsolved.

In short: monetary policy is still the fuel, AI is the accelerant, and the real test lies in how long both can keep powering the market before one gives way.

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