Commentary Highlights:

·       Geopolitical Purgatory & Energy Shift: The Iran conflict and indefinite closure of the Strait of Hormuz have kept oil near $100/bbl, a situation that has exposed global energy vulnerabilities while simultaneously accelerating a long-term shift toward domestic resource strength and renewable energy adaptation.

·       Rally Continues With Narrow Participation: Major indices reached record highs last week despite exceptionally thin breadth, as semiconductors and the broader technology sector drive two-thirds of market gains while elevated interest rates continue to pressure the bond and housing sectors.

·       The Capital-Labor Divorce: The U.S. economy has reached a historic extreme with corporate profits capturing a record 14% of GDI while the labor share has dropped to its lowest level since 1947—a 2-standard-deviation imbalance driven by AI's role as a purely capital-augmenting technology.