Asks if market is in a 'hangover period' after recent volatility.
Frank
David Royal
Agrees valuations were stretched, but is more bullish due to ~95% probability of a December Fed rate cut, which provides certainty and should dampen volatility.
Asks about impact of rising Japanese yields (BoJ potential hike) on US equity market, suggesting it could pull money away from US stocks.
Frank
David Royal
Acknowledges the dynamic, notes long-term Treasuries ticked meaningfully higher yesterday despite weak data, which pressures demand for Treasuries and, secondarily, equity multiples.
Asks if NVIDIA's surge signals a re-acceleration of the AI trade or continued selectivity.
Frank
David Royal
Sees both: a washout occurred, still likes big tech, but now sees more selectivity. Expects potential re-acceleration in NVIDIA into year-end.
Asks if massive (~700%) jumps in consumer generative AI usage during Black Friday/Cyber Monday will bolster the AI trade, given importance of consumer spending.
Frank
David Royal
Affirms it will definitely bolster the AI trade as usage broadens. Retail sales were better than feared, up modestly 3-5%, with consumers leaning into AI.
Asks if strong ~4.5% holiday spending increase is encouraging despite prior consumer worries.
Frank
David Royal
Yes, it's been better than expected (4-5% range). Notes consumer stocks have rallied, partly because Q3 orders were down, leaving room for them to run on strong sales with potential for order pickup in Q4.