In our recent AlphaCore Market Update webinar, Associate Director of Research Madeline Hume was joined by Chief Investment Officer Eric Gerster and Chief Investment Strategist Dr. David Stubbs to discuss the key forces shaping markets today. The conversation covered shifting leadership in equity markets, the growing impact of artificial intelligence, the outlook for private credit, and how geopolitical developments may affect inflation, energy markets, and portfolio construction.

So what were the biggest takeaways? While volatility and uncertainty remain elevated, investors can navigate today’s environment by staying focused on diversification, disciplined portfolio construction, and long-term opportunities across both public and private markets.

A broader market is taking shape

While the S&P 500 has remained relatively flat to start the year, the market beneath the surface has been much more dynamic. Eric highlighted that leadership has broadened meaningfully beyond the “Magnificent Seven,” with a larger share of stocks participating in gains even as some of the biggest names in technology have lagged.

This widening participation reflects a market that is becoming less concentrated and more selective. International equities have continued to show strength, gold has remained a standout performer, and hedge funds have continued to serve as an important portfolio stabilizer. At the same time, investors are seeing much greater dispersion across individual stocks and sectors, creating both volatility and opportunity.

AI is transformative, but adoption may take time

A major theme of the discussion was the market’s response to artificial intelligence. Eric noted that AI-related uncertainty is contributing to unusually high stock-level volatility, especially in technology and software. But he also emphasized the importance of separating narrative from data.

One example: despite concerns that AI could quickly replace large segments of the workforce, recent data shows software engineering job postings have accelerated, suggesting demand for technical talent remains robust. The team’s view is that AI will likely be highly productive and margin-enhancing over time, but the path will not be immediate or linear.

David added that while AI has the potential to reshape industries, adoption is often slowed by real-world frictions, including regulation, politics, implementation challenges, and infrastructure constraints. In particular, the buildout required for power, cooling, land, and data centers could become a natural brake on the pace of AI expansion.

Private credit remains a structural opportunity

Private credit has attracted significant investor attention in recent years, and it has also generated more headlines recently. David and Eric addressed the growing scrutiny directly.

Their view is that private credit remains a structural component of the modern financial system, not a temporary trend. Regulatory changes following the Global Financial Crisis shifted much of this type of lending away from traditional banks and into private markets, creating a long-term opportunity for specialized lenders.That said, both speakers acknowledged that the space has grown rapidly and that not every strategy or manager is created equal. AlphaCore’s approach remains focused on experienced, well-established managers with strong underwriting, proven processes, and thoughtful liquidity management.

The team also underscored an important point for investors: redemption limits in semi-liquid private market vehicles are a feature, not a flaw. These structures are designed to protect long-term investor value and avoid forced selling during stressed periods. When integrated thoughtfully within a broader wealth plan, private credit can continue to serve as a valuable source of income and diversification.

Geopolitics matter most when they affect inflation and cash flows

The webinar also addressed the fast-moving geopolitical backdrop, particularly developments in the Middle East and the implications for energy markets. David explained that the key variable for markets is not simply whether conflict occurs, but how long it lasts and how broadly it spreads.

Disruptions to major shipping routes and hydrocarbon supply could create upward pressure on energy prices, with Europe and Asia likely more exposed than the United States. While the U.S. economy is relatively insulated due to its domestic energy resources, prolonged disruptions could still create modest inflationary effects and complicate the outlook for central banks.

Eric noted that while markets often react negatively to geopolitical shocks in the short term, they tend to refocus quickly on fundamentals, especially earnings and cash flow. That is one reason diversified portfolios remain so important during periods like this.

Resilience remains the central investment theme

A recurring message throughout the discussion was that today’s environment is shaped by overlapping shocks: geopolitical fragmentation, supply chain realignment, climate-related pressures, and rapid technological change. In that kind of world, resilience matters just as much as return potential.

The team highlighted several themes they continue to watch closely, including infrastructure, energy systems, digital buildout tied to AI, reshoring and supply chain security, and real assets such as commodities and gold. Just as important, they emphasized that how investors gain exposure matters as much as what they invest in.

At AlphaCore, that means building portfolios across public and private markets, traditional and alternative asset classes, equity and debt, with the goal of creating more durable outcomes over time.

Closing thoughts

Despite today’s headlines and uncertainty, the team remains constructive on the broader investment backdrop. U.S. household and corporate balance sheets remain strong, opportunities are emerging globally, and market dispersion is creating room for active management to add value.

The central takeaway from the webinar was clear: uncertainty may be elevated, but thoughtful diversification, disciplined research, and a long-term perspective remain the best tools for navigating it.

If you have questions about how these themes may affect your portfolio, please reach out to your AlphaCore advisor.

Disclosure: This material is provided for informational purposes only. This material represents the current views and opinions of the speakers, and there is no guarantee that any opinions will prove to be accurate, or any forecasts made will come to pass. No obligation is undertaken to update any information, data, or material contained herein. AlphaCore provides investment advice only within the context of our written advisory agreement with each AlphaCore client. The material may contain forward-looking statements regarding economic trends, market developments, or other factors. Actual results could differ materially from those expressed or implied. Information provided does not constitute an offer or solicitation, and should not be considered tax, legal, or accounting advice. Any issuers or securities discussed are provided as illustrations or examples only, for the limited purpose of analyzing general market or economic conditions and may not for the basis for an investment decision, nor are they intended to serve as investment advice. 

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