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Global financial markets are shifting into investment selection mode, with three themes seen as winners in the second half: the AI supply chain, supply chain shifts, and value plays. This comes amid volatility from the US-Iran conflict and the Federal Reserve's rate direction, with the Fed in no hurry to cut rates even though June CPI inflation came in below expectations at 3.5 percent. New Fed Chair Kevin Warsh has signaled a tight policy stance if inflation remains high. Meanwhile, fund flows are starting to rotate out of AI stocks into high-dividend value stocks in the Thai and Japanese equity markets. South Korea's stock market has tumbled into bear market territory after a sell-off in AI shares, and China reported second-quarter GDP growth of just 4.3 percent, the lowest in three years. However, the IMF raised its China GDP forecast to 4.6 percent, citing strength in the high-tech manufacturing sector. Warren Buffett warned that today's stock market is driven more by speculation than long-term investing, and advised investors to use diversification, dollar-cost averaging, and rebalancing to manage risk.