Focus Asset Management flags late-stage AI-driven stock market exuberance, urges caution

• Focus flagged late-stage equity exuberance in Q2 2026, citing AI-driven valuations it views as inconsistent with sustainable returns.
• S&P 500 rebounded about 17% after a 9% March selloff; the TSX Composite rose about 7% on banks, commodities.
• Report said about half of S&P 500 market cap trades near 10x price-to-sales, raising payback risk even with strong earnings.
• US growth described as increasingly dependent on AI capital spending, with up to three-quarters of Q1 2026 growth tied to it.
• Strategy tilt: selective equities outside AI, more caution in credit with tight spreads, higher-quality shorter-duration bonds, larger role for alternatives.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Focus Asset Management Ltd published the original content used to generate this news brief on July 13, 2026, and is solely responsible for the information contained therein.