Asks Drew Pettit for his view on yields and whether the market can make new highs if yields keep climbing.
Host
Drew Pettit
Industrial production was good (0.4% vs 0.1% expected). The economy is working with more stocks showing positive earnings growth.
Asks if inflation at ~3% is too high and if the stock market is signaling it's not a problem.
Host
Drew Pettit
For equities, 3% inflation is not a problem; it means decent pricing power.
Asks if investor frustration with inflation drives them into metals and if there's a macro reason for that.
Host
Drew Pettit
There has been some hedge fund/macro chasing and momentum trading in precious metals (seen in ETF flows).
Asks about his 'corners' strategy favoring small-cap value and large-cap growth while ignoring the middle.
Host
Drew Pettit
In a good growth environment with a secular AI driver, you want risk, which is found at the corners (size/style box), not in the middle.