The current macroeconomic environment is favorable for risk assets in the short term, driven by AI capital expenditure, consumption by wealthy individuals, and robust nominal growth, which collectively enhance corporate profits. However, long-term structural risks such as sovereign debt, demographic challenges, and geopolitical shifts pose significant threats. The ongoing AI investment boom is providing a substantial boost to revenues and profits, although its long-term impact on GDP growth remains uncertain. Institutional investors are advised to maintain a diversified portfolio, focusing on technology, communication services, and Asian markets, while also considering investment-grade bonds and alternative strategies to manage volatility. Despite the positive outlook, underlying issues such as income inequality and the ineffectiveness of monetary policy transmission due to high public debt levels could undermine long-term stability. Additionally, the looming challenges of sovereign debt management and declining fertility rates are expected to impact future economic growth and political stability.