• The 2025 stock market rally is showing signs of broadening beyond the previously dominant 'Magnificent Seven' tech stocks, as nearly half of the companies in the S&P 500 are outperforming the index. This marks a significant shift from the last two years, where only about 30% of companies managed to outperform, indicating a more diverse market landscape. Investors are increasingly looking at global equities, gold, and small-cap US stocks, suggesting a potential stock picker’s market where individual company performance is becoming more critical.

• Despite ongoing concerns about Federal Reserve interest rate policies and geopolitical tensions, the overall market remains resilient. The Bank of America's recent survey indicates that cash levels among fund managers have dropped to a 15-year low, reflecting a bullish sentiment towards equities. This shift in investment strategy could lead to increased volatility as managers navigate the changing landscape, particularly with the Fed's cautious stance on rate cuts and the potential impact of tariffs on economic growth.