
Quarterly Client Update Q3 2025
Earlier this week, Mike used AI to help Dylan study for his math test. He took a picture of the study guide, and within seconds, AI generated sample problems for them to work through—complete with step-by-step explanations that reminded Mike how to solve them. That was fortunate, since Dylan’s math book was exactly where it tends to be the night before a test: in his locker.
It’s remarkable what technology can do. Yet what strikes us most isn’t AI’s precision but how confidently people predict what it will do next. Depending on whom you ask, it will either make everyone rich or take everyone’s job. As Professor Kevin Murphy of the University of Chicago recently noted, every technological leap—from the electric motor to the internet—has prompted the same mix of excitement and anxiety. He shared that a century ago, nearly 40% of Americans worked in farming; today, it’s less than 2%, yet employment and prosperity both grew. We can understand the mechanics of technological innovation, but predicting how it will reshape the economy has never been easy.
That hasn’t stopped anyone from trying.
JPMorgan’s Michael Cembalest recently highlighted that since ChatGPT launched in late 2022, AI-related companies have driven nearly 90% of capital-spending growth¹. Those investments have certainly been rewarded by the market, as those companies have accounted for 80% of earnings growth and 75% of the S&P 500’s returns during that same period¹. But that doesn’t mean the rest of the economy has been left behind. History shows that market leadership rarely stays in one place; innovation spreads, others catch up, and leadership eventually broadens. AI tools now touch nearly every type of business—AI-focused ETFs even hold companies like Caterpillar, Honeywell, and Thomson Reuters—showing how widely these technologies are being adopted across the economy².
The tools and efficiencies AI creates touch nearly every industry, from manufacturing and medicine to finance itself². That means diversified investors—like you—already have exposure to the companies adapting and thriving because of AI, without needing to guess which single name will win.
Meanwhile, the broader economy continues to show resilience. Inflation is moderating, interest-rate expectations have eased, and global equities posted positive returns through the third quarter³. Nevertheless, short-term headlines, such as the government shutdown, can raise concerns about the market's potential direction. Our role is to stay disciplined—rebalancing when appropriate and ensuring your portfolio remains aligned with your plan.
As always, we appreciate your continued trust. This is especially true as we write this update for the first time as Purposeful Wealth. We’re grateful for the response we have already received, and we are excited to continue partnering with you with our new name. If you missed the announcement letter, you can view that here.
Please reach out if you have any questions, want to talk through planning opportunities, or even math homework—we’ve got AI for that now.
¹ “The Weirdest Bubble Ever,” Ben Carlson, A Wealth of Common Sense, Sept 26, 2025.
² “AI Is Everywhere,” Wes Crill, Dimensional Fund Advisors, Q3 2025 Quarterly Market Review.
³ Dimensional Fund Advisors, “Quarterly Stories (US),” Q3 2025.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.
Investment advice offered through Private Advisor Group, a registered investment advisor.