Asks about market exposure given Middle East uncertainty, private credit, and AI concerns, noting the market is down but hasn't collapsed.
Romaine Bostic
Julie Beale
Explains market placidity at index level masks high volatility in individual stocks, driven by abundant liquidity, dip-buying psychology, and underlying GFC-era concerns like CLOs.
Asks when investor sentiment shifts from dismissing energy shocks as short-lived to genuine worry, given the Strait of Hormuz remains closed after two weeks.
Romaine Bostic
Julie Beale
States the Strait of Hormuz disruption won't be quickly resolved, putting pressure on potential Fed rate cuts. High oil will pressure the US consumer, despite temporary relief from tax refunds.
Asks how a vulnerable consumer and oil/rate uncertainty should inform portfolio structuring.
Katie Graff
Julie Beale
Advocates focusing on quality businesses with strong underlying themes and earnings. Warns against speculative, narrative-driven stories. Sees renewed interest in software companies with high cash flows and returns.
Asks if her 'pretty woman' analogy for software means she's bullish.
Katie Graff
Julie Beale
Clarifies she is not bullish on software writ large due to AI disruption risk for pure optimization software. Favors software with proprietary data sets and regulatory barriers.