Insights

AI-driven data center growth is increasing water demand, especially in water-stressed regions, with electricity generation driving most water use.

U.S. electricity consumption is forecasted to grow up to 25 percent by 2030, with over half of growth from data centers.

Economic growth remained robust in the fourth quarter, fueled by strong spending from high-income households and productivity gains linked to artificial intelligence-related investments.

The municipal market enters 2026 with strong but fading credit quality.

As we enter 2026, we are of the view that the next 12 months may be more about total return and less excess return.

California’s fiscal picture remains strong, but its heavy reliance on income taxes tied to capital markets means the state could face unique risks if the AI boom reverses.

Today’s investors have access to a wide variety of investment vehicles, often utilizing multiple structures within the same portfolio.

In October 2025, the Federal Open Market Committee cut interest rates by 25bps to a range of 3.75 to 4.00 percent and announced an end to quantitative tightening in December.