Asks about implications of China reducing US bond holdings and a potential 'reboot' of Treasuries on the world stage.
Carol Massar
Stuart Kaiser
No real alternative to US Treasuries for many countries due to size and liquidity. Fiscal spending risk on long end of yield curve is global, not unique to US.
Stuart Kaiser
As an equity guy, lets bond market signal when fiscal risk becomes a problem; for now, long end hasn't moved significantly and volatility is low, so people are comfortable.
Asks for view on equity market after volatile rotation last week and where to be optimistic.
Tim Stenovec
Stuart Kaiser
Still positive on US equity risk. Rotation from tech/growth to value/cyclicals started in November, accelerated last week causing indigestion due to size of moves in large-cap stocks.
Stuart Kaiser
Within tech, shift is from spenders to beneficiaries of AI spending (e.g., power generation). Companies are now punished for capex if ROI isn't clear.