Summary
Investors express growing concerns about the implications of rising debt levels and equity issuance in the context of artificial intelligence (AI) spending. Peter Cheer, head of macro strategy at Academy Securities, highlights a recent nervousness in fixed income markets, where widening spreads indicate a pushback against the increasing costs associated with AI investments. He notes that the emergence of cheaper Chinese computing capabilities poses a significant threat, as these advancements could undermine the competitive edge of U.S. technology firms.
The discussion also touches on the broader economic implications of AI spending, with Cheer warning that a potential slowdown in this area could adversely affect GDP growth. He observes a divergence in stock performance, reminiscent of past market behaviors, and raises concerns about the sustainability of current equity valuations in light of increasing economic risks. As the market anticipates upcoming earnings reports from major tech companies, the uncertainty surrounding AI investments continues to loom large.
In a separate segment, Nate Tuff, CIO at Manulife Investment Management, emphasizes the need for discernment among investors as the AI landscape evolves. He identifies healthcare as a promising sector that could benefit significantly from AI advancements, particularly in diagnostics and personalized medicine. Tuff also discusses the challenges posed by high interest rates, which have made fixed income investments more attractive, prompting a reevaluation of equity allocations.
As geopolitical tensions rise, particularly regarding Iran, analysts like Heidi Kribo-Redeker from the Council on Foreign Relations suggest that foreign policy issues may increasingly influence domestic political dynamics, especially in the context of inflation and economic affordability. The interplay of these factors sets the stage for a complex economic landscape as the midterm elections approach.
Show Notes
The latest in finance, economics and investment. Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Surveillance hosted by Tom Keene & Paul SweeneyMonday, October 26th, 2026 Featuring:
1) Peter Tchir, Head of Macro Strategy at Academy Securities, joins to discuss credit spreads across markets and how cost of capital and stubborn energy prices are rippling through markets. 2) Nate Thooft, Global CIO for the Multi-Asset Solutions Team and Senior Portfolio Manager for Manulife Investment Management, talks the three themes connecting markets. 3) Heidi Crebo-Rediker, Senior Fellow at the Council on Foreign Relations, talks about the intersection of geopolitics and the Midterms. 4) Ella Gude, Head of Investment Strategy and Asset Allocation at BNY Advisors, talks the expansionary market regime and the upward pressure on equities. See omnystudio.com/listener for privacy information.
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