Selective Markets, Structural Shifts

Monthly Market and Economic Update – July 2026

Peter Flannery  Financial Adviser CFP

“People calculate too much and think too little.”

Charlie Munger

Key Points: 

  • June in numbers: Dow Jones up 2.52%, S&P 500 down 1.06%, Nasdaq down 2.81%
  • AI capital expenditure is now a balance sheet event, with Alphabet raising US$85 billion from the market rather than self funding from retained earnings
  • Electricity and grid infrastructure are becoming the binding constraint on AI growth, broadening the opportunity well beyond technology stocks
  • New Zealand GDP up 0.8% in the March 2026 quarter, led by services, exports and gradually improving consumer confidence
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