How important are ripple effects from software/private credit relative to the oil price spike?
speaker1
Peter Boockvar
Private credit defaults are wider than software - healthcare and consumer products lead. Lower quality credits are more sensitive to economic downturn if oil prices stay high.
Do you expect higher or lower interest rates due to energy prices?
speaker1
Peter Boockvar
Global bond markets are rising due to inflation worries from energy costs. Fed funds futures now price only one cut vs. two cuts last Friday.
Peter, what would you say?
speaker1
Peter Boockvar
Fundamental bull case for oil price - was one of cheapest assets in the 60s. Still like oil stocks. Non-AI trade will continue, focus on consumer staples. AI tech trade is exhausting itself.