Asking about Q4 seasonality and whether global investors pay attention to quarterly market stats
Frank
Kunal Kapoor
We don't pay much attention to single quarter performance - it's been a good year for investors with many asset classes performing well, especially overseas investments
Dollar weakness contributed to strong overseas returns - if dollar strengthens, does that change the overseas opportunity narrative?
Frank
Kunal Kapoor
Our view heading into 2026 is that dollar is likely to underperform some other global currencies
Kunal Kapoor
With dollar declining trend continuing, it's good to have non-US assets in portfolio
Asking about AI bubble concerns and what clients are doing given mixed market signals
Frank
Kunal Kapoor
30% of Morningstar US Market Index has stocks linked to AI trade - tech and telecom showing overvaluation
Kunal Kapoor
Individual companies like Nvidia and Alphabet still slightly undervalued despite aggregate AI trade being overblown
Asking about hyperscaler bonds trading 50-80bps above treasuries and cash usage concerns
Frank
Kunal Kapoor
Hyperscaler bonds have strong demand because companies throw off substantial cash - investors confident in repayment ability
Asking about Fed outlook - expecting December cut and importance for markets
Frank
Kunal Kapoor
Likely another Fed cut next year but not make-or-break - valuations and company growth delivery will define markets