Asks about importance of jobs report given Fed meeting already passed and focus on 2026.
speaker1
speaker2
Jobs report matters but doesn't move needle much; confirms cooling labor market that isn't breaking, leaving Fed comfortable.
Notes skepticism creeping into AI trade, cites Broadcom and Oracle examples, asks how skepticism marries with 2026 outlook.
speaker1
speaker2
AI is a risk for next year; theme shifting from indiscriminate rally to deciphering winners/losers. Still generally bullish/optimistic for 2026, expecting high single/low double-digit returns.
Questions if something changed as Meta's CapEx increase was poorly received vs. past positive reactions, highlighting market concern over spending ROI and growth rate slowdown.
speaker1
speaker2
Some skepticism appropriate, but bigger long-term risk is under-investing, not over-investing. Spending funded by cash flow, some debt concerning. Primary concern is impact on credit markets from supply causing indigestion for spreads.
Asks if market success will broaden out materially next year or remain concentrated.
speaker4
speaker2
Expects broadening. Likes financials, industrials, materials for cyclical value durability. Energy is wild card due to oil price outlook.
Notes financials, industrials, materials already doing well, energy wobbly; asks if same playbook for next year.
speaker1
speaker2
Similar playbook as yield curve continues to steepen, supporting cyclical value sectors. Expects more traditional capex spending alongside AI spending.