Tech stocks could ‘suffer’ and face a ‘difficult’ time if bond yields continue to rise
Asset AllocatorShow Notes
Are bonds becoming attractive again? Can the AI trade continue to drive equity markets? And with concerns over government debt, inflation and geopolitical risk mounting, where can investors still find a safe haven?
Janet Mui, head of market analysis at RBC Brewin Dolphin, joins the Asset Allocator podcast to discuss the outlook for government bonds, equities, artificial intelligence and gold.
Mui explains why elevated government bond yields could persist, why RBC Brewin Dolphin currently prefers government bonds to corporate credit, and what the return of the “bond vigilantes” could mean for governments running large fiscal deficits.
The discussion also turns to equity markets and the AI investment boom. With technology valuations elevated and huge sums being spent on AI infrastructure, Mui considers whether the AI trade can continue to deliver — and why small-cap stocks, the UK and Europe could offer investors ways to diversify their exposure.
Timestamps 00:00 - Bond Market Dynamics 05:02 - Equity Markets and AI 09:53 - The impact of AI on markets 19:58 - Safe Havens & Hedging
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