Markets spent the 2nd quarter navigating the calm within the storm. Hope for a near-term peace agreement with Iran, combined with a strong earnings season that reflected continued momentum behind the AI trade, boosted sentiment while simultaneously increasing market concentration. While it’s still too early to assess the durability of the newly announced U.S. – Iran Memorandum of Understanding, mediated by Pakistan, the agreement represents a constructive step forward and helps reduce a key risk for markets and consumers. This framework for a deal has the potential to broaden participation into the second half. Our positioning for the second half prioritizes essential beta complemented by thoughtful tactical exposures.