Stocks beat bonds again last quarter as a $1 trillion-a-year capital spending boom in artificial intelligence pushed earnings forecasts to a record. We acknowledge that profit margins have climbed well above what we once thought likely, and we believe they sit above what the long run will support. But the cycle shows little sign of turning at the moment. Meanwhile, the end of cheap credit may start to bite: long-term Treasury yields near 5.7%, mortgage rates above 7%, and sharply higher borrowing costs for weaker companies and deficit-running governments could eventually pose challenges to valuations.