Welcome to the April edition of FAQs and RAQs!

Here we tackle client questions—some asked Frequently, others Rarely.

FAQ: Is the Iran war in the rearview mirror for stocks, or is there more to worry about?

No one can say for sure. But after nearly two months focused on geopolitical risk, the market appears ready to return to “regularly scheduled programming”: AI, jobs, and corporate earnings.

That doesn’t mean the conflict couldn’t flare up again. It does mean investors seem less concerned about worst‑case outcomes like a spiraling regional war or oil prices surging to extreme levels.

Instead, attention is shifting back to what matters most over the long run: corporate profits. Profits largely drive stock prices over long periods of time.

Consider the chart below showing profits generated by U.S. companies per worker.

Now consider this: virtually the entire chart is pre‑AI.

What do you think it looks like in 2036?

That’s a far more important question for investors than how many ships are moving through the Gulf.

RAQ: How is Pittsburgh positioned for the AI revolution?

This question doesn’t come up often—and it doesn’t directly affect portfolios—but it does come up.

And the answer may surprise people.

Pittsburgh could benefit from AI in unexpected ways, especially through companies reinventing themselves. Several so‑called “old economy” firms have quietly become “new economy” players:

• An electrical components distributor founded in the early 1920s that now supplies data centers.
• A company that began in the 1970s making industrial laser lenses, now producing optical technology critical to AI infrastructure.
• A legacy electricity firm founded in the 19th century, positioned to help power what comes next through nuclear energy.

Who said old dogs can’t learn new tricks?

Have a question?

Drop us a line at carlsongroup@rwbaird.com. We’d love to hear from you!

All investments carry risk, including loss of principal. Past performance is not a guarantee of future results.