Neuberger's Chief Investment Officer Shannon Saccocia shared an interesting take on where markets might be headed. She pointed out that anticipated Fed rate cuts, combined with the productivity surge from AI adoption, could create a favorable environment for equities and other risk assets.

Historically speaking, there's a clear pattern here. When the Federal Reserve shifts to an accommodative stance while the economy stays out of recession territory, stocks tend to deliver solid gains. It's that sweet spot where easier monetary conditions pump liquidity into markets without the drag of economic contraction. The AI productivity angle adds another layer—companies squeezing more output from existing resources could see margin expansion, making valuations more attractive even as rates come down.