On Money & More – November 2025

THE FOLLOWING is an excerpt from Cutler’s most recent market commentary:

“The future is not set. There is no fate but what we make for ourselves.”

— Sarah Connor, The Terminator

Artificial Intelligence has become the most transformative force in today’s economy. The field was founded in the 1950s by John McCarthy, a professor at Dartmouth who believed that “every aspect of intelligence can, in principle, be simulated by a machine.” He imagined computers that could think and reason like humans.

Seventy years later, AI has taken a different path. The latest systems, called “Large Language Models,” don’t actually think—they predict. By analyzing massive amounts of data, these programs generate remarkably human-sounding responses, but without true understanding. They’re expert imitators of intelligence, not creators of it.

That hasn’t stopped Wall Street from betting heavily on what comes next. The world’s biggest companies are racing to build AI that can reason, see, and act; seeking to create machines that may one day complete McCarthy’s original vision. The spending is staggering. In 2025 alone, the so-called “Magnificent Seven” tech giants are expected to invest more than $400 billion in AI infrastructure. Even individuals are fetching unbelievable sums: Meta (Facebook’s parent company) reportedly offered a 24-year-old AI engineer $250 million to join its AI lab.

Investors have taken notice. Since ChatGPT debuted less than three years ago, the S&P 500 has risen more than 70%. That’s despite certain economic indicators flashing warnings of a potential slowdown. In large part, AI investment itself has kept the economy humming. When hundreds of billions of dollars are poured into data centers, chips, and software, it creates jobs, construction, and growth far beyond Silicon Valley.

For American investors, this is not a spectator sport. We are active participants in this technological revolution. Through retirement plans, mutual funds, or direct stock ownership, we can participate in the opportunities created by today’s leading companies. And yet, no breakthrough comes without risk. We are in a period of great disruption. How these developments translate to future stock market returns and business competition is yet to be seen. In Cutler’s view, investors should maintain prudent diversification. Rebalancing portfolios is one way to be diligent with your risk exposures.

AI’s rise is the latest chapter in a long story of human ingenuity. Whether this revolution leads to prosperity or disappointment will depend on how wisely we invest—and how thoughtfully we use the tools we create. As Sarah Connor reminded us, the future isn’t predetermined. It’s what we make of it.

All opinions and data included in this commentary are as of October 12, 2025 and are subject to change without notice. The opinions and views expressed herein are of Cutler Investment Counsel, LLC and are not intended to be a forecast of future events, a guarantee of future results or individual investment advice including the asset allocation provided or any security mentioned. Nothing herein should be construed as tax advice. This article is provided for informational purposes only and should not be considered a recommendation or solicitation to purchase or sell securities. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Investing involves risk, including the potential loss of principle. Neither Cutler Investment Counsel, LLC nor its information providers are responsible for any damages or losses arising from any use of this information.