Morning Call Sheet: AI, higher yields and global growth drive markets

• AI infrastructure and hyperscalers (e.g., Amazon, Microsoft, Alphabet) are experiencing significant momentum and underappreciated asset productivity.
• Fixed income offers opportunities with higher yields, favoring long-duration bonds, closed-end municipal bond funds, private credit, and emerging market debt.
• Global infrastructure and energy build-out, particularly in Europe and emerging markets like Latin America and Asia, present substantial investment prospects.
• Midterm elections are not expected to significantly alter market trajectory, with focus remaining on global economic and geopolitical factors.

The discussion highlights strong momentum in AI and tech, driven by demand for compute, with hyperscalers poised for continued growth. Despite higher yields, opportunities exist in fixed income, particularly in long-duration and municipal bonds. Globally, infrastructure and energy build-out, along with emerging markets, are seen as significant investment themes, overshadowing domestic political events.