For decades, electricity consumption stagnated. Now it is surging, driven by artificial intelligence. Microsoft is building a data center in Texas that will require nearly as much power as three nuclear plants. Electricity is becoming a strategic resource, much like oil was in the 20th century. The T&V Letter Q2 2026 explains why electricity is becoming the new oil.

In Q1 2026, geopolitics took centre stage: the Iran conflict sent oil prices surging and markets under pressure. But what concerns us more is a shift unfolding far more quietly. AI is improving faster than most realise — and those who engage with it seriously today will understand what is coming better than almost anyone around them.

Equity markets are increasingly shaped by dominant narratives and rising concentration, with artificial intelligence at the centre of investor attention. A look at history shows that such phases are rarely permanent and often coincide with a widening gap between market leaders and fundamentally solid companies. This environment creates selective opportunities for long-term, quality-focused investors.