David Leon joined ausbiz to discuss whether markets are becoming too complacent as the margin for error narrows. While earnings momentum remains resilient, David noted that unresolved Middle East tensions, elevated valuations and questions around AI profitability continue to create risks beneath the surface. He also highlighted that oil prices may be providing a misleading sense of calm, with weaker demand and reserve releases masking ongoing risks around shipping, insurance and the Strait of Hormuz. On AI, David remains constructive over the long term, particularly across data centres, grid infrastructure and energy demand, but cautioned that some valuations already reflect years of future success. His key message was that investors should separate probability from profitability, remain selective and avoid overpaying for outcomes that have yet to transpire.