Our goal for Investment Perspectives is for it to be one of the ways that we communicate our thinking (past and present) to clients and the general public. We believe that investing is an iterative process and we know of no better way to test our own thinking than to share it with others. We encourage readers to send us their thoughts or questions.
Latest Investment Perspectives
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”
– Mark Twain
Energy, AI Expectations, and the Discipline to Hold
As we enter 2026, markets find themselves in a peculiar position: major indices hover near all-time highs, yet the investing landscape feels anything but comfortable. Labor market data has softened, geopolitical tensions flare unpredictably, and the artificial intelligence boom continues to reshape capital flows across sectors, most notably in energy, where data center demand is rewriting long-held assumptions about electricity consumption and generation mix. Meanwhile, the gap between AI-related projections and historical precedent has widened to levels that warrant serious examination.
Against this backdrop, this quarter’s Investment Perspectives explores three themes: how AI-driven electricity demand is creating a supply gap that will take years to close, and why the energy transition, while real, won’t happen overnight; what base rate analysis reveals about the extraordinary growth projections embedded in AI valuations; and why the psychology of holding through uncertainty remains the most underrated skill in long-term wealth creation. Though varied in subject, these themes converge on a single insight: each rewards investors who can distinguish between compelling narratives and fundamental value, and who possess the temperament to act on that distinction.