Asks about the impact of missing jobs reports due to government shutdowns on market data clarity.
speaker1
Rick Rieder
Acknowledges data trickiness but states there's no ambiguity: the job market is having a really tough time while productivity and growth are strong.
Questions if the economy can remain okay despite job market cracks, given high Mag7 CapEx and government deficits.
speaker1
Rick Rieder
Affirms the economy can motor along because it's more asset-oriented than labor-oriented; burden is on low-income/younger cohorts who are less impactful on aggregate spend.
Asks about AI's impact on work and jobs, referencing a tool for financial analysis.
speaker1
Rick Rieder
AI will fulfill many standard operating procedures, requiring rethinking of education and work, but there's no roadmap for this transition.
Asks how to judge if a company has a defensible moat against AI disruption.
speaker1
Rick Rieder
CapEx and R&D are the moat; companies exploiting data effectively build bigger moats.
Asks about fixed income positioning for the rest of the year, given yield curve and Fed balance sheet discussion.
speaker1
Rick Rieder
Outlines portfolio changes: reduced IG and high-yield credit, added to mortgages (recently trimmed), likes EM a lot, and favors securitization markets. Reduced European exposure, added more Asia.