The economy is in better shape than people are expecting. Why?
speaker1
Torsten Slok
The list of tailwinds is getting longer: One Big Beautiful Bill starting next week (good for consumers and corporate expensing), lower oil prices, dollar going down, and trade war fading.
There's stimulus in this economy going into 2026, whether overt or not. Your thoughts?
speaker1
Torsten Slok
The bill helps with immediate 100% write-down of capex for companies and provides consumer tailwinds through larger tax refunds in 2026.
Is the market justified given the better economy developing in 2026, and how does that give it more runway from a valuation standpoint?
speaker1
Torsten Slok
Growth outlook is good, but the market is extremely concentrated in AI - top 10 stocks make up 40% of the index, and AI concentration now extends to credit markets too.