David Leon joined ausbiz to share insights from his recent U.S. trip, where conversations with asset and wealth managers proved more constructive than expected. David noted the U.S. economy continues to outperform, with AI-related capital expenditure supporting broader activity and the investment story shifting towards infrastructure such as data centres, energy, defence and industrial capacity. With earnings growth outpacing market gains, he noted U.S. valuations look more reasonable on an earnings basis than headline concerns suggest.

David also discussed AI’s growing role in professional services, where lawyers, accountants, financial advisers and portfolio managers are adopting sophisticated tools for research, meeting preparation, portfolio analytics and documentation. Rather than replacing professionals, AI can automate lower-value tasks, freeing people to focus on judgement, strategy and client relationships.

David highlighted three key risks he is monitoring: a sharp decline in AI-related CapEx, persistently higher interest rates and weaker corporate earnings growth.