Bloomberg Surveillance Bloomberg Surveillance TV: December 15th, 2025
Dec 15, 2025
Sarah Hunt, Chief Market Strategist at Alpine Saxon Woods, discusses investor concerns about AI capital expenditures and how shifting narratives shape market valuations. Henrietta Treyz, Co-Founder of Veda Partners, analyzes the political implications of Trump's recent economic statements and warns of potential ACA subsidy lapses. Pooja Sriram from Barclays shares insights on labor market trends and challenges in jobs data. Lastly, Keith Lerner from Truist offers his outlook on the tech sector, advocating for diversified portfolios as we head into 2026.
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Episode notes
AI Spending Faces Second-Derivative Risk
- Investors are increasingly worried that AI capex growth may slow and that spending expectations face a law-of-large-numbers problem.
- Sarah Hunt says the key issue is whether AI spending raises earnings and who will benefit from the infrastructure buildout.
Narrative Volatility, Not AI's Death
- Broad narratives about AI flip quickly, creating high investor sentiment volatility rather than a permanent reassessment of AI's role.
- Hunt argues the core question is who benefits and whether AI adoption will improve corporate margins.
Broad Adoption Is Needed To Sustain AI Gains
- Broader corporate adoption beyond big tech is essential for sustaining AI-driven valuation expansion.
- Without small- and mid-cap participation, the AI story risks concentrating gains and limiting market breadth.