The convergence of AI, energy, and geopolitics is the defining market force. AI's massive power requirements are making energy a strategic national priority, while geopolitical tensions are shaping access to both energy and technology, creating a powerful, interconnected investment theme.
Portfolios aligned with major intersecting themes like AI infrastructure, energy security, and defense are not just theoretical; they are generating significant alpha. In 2025, these thematic categories outperformed the S&P 500 by 27 percentage points, demonstrating the tangible financial benefit of this investment approach.
Contrary to fears of mass job replacement, AI's primary impact is role transformation. Analysis shows that while 11% of jobs may be eliminated, this is largely offset by the creation of 18% new roles, resulting in a much smaller net job loss and a significant reshaping of how work is done.