Confidence returned in the second quarter, reflected in stronger data tied to AI capital investment. While the conflict with Iran remains active, markets are no longer pricing in the most severe outcome. Instead, markets resumed the hunt for AI beneficiaries in the second quarter. Tactical repositioning includes a closing of an overweight position in developed markets, a refocusing on domestic growth, and a tilt toward mortgages as rates remain steady. Portfolios maintain a modest tilt toward stocks over bonds, aligning with the forecast path for our WCA Barometer.