On The Tape with Danny Moses Dennis DeBusschere: Taking A Victory Lap Through The K-Shaped Economy
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Oct 15, 2025 Dennis DeBusschere, President of 22V Research and a former macro strategist, dives into the complexities of the K-shaped economy. He explores the volatile Fed policies, examines AI's impact on market momentum, and shares insights from his recent trip to China, highlighting their push for tech self-sufficiency. DeBusschere analyzes labor market trends, the implications of rate cuts, and sector performance, emphasizing how these factors influence investor sentiment. Expect intriguing predictions and a candid outlook on inflation and credit market challenges!
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Top Quintile Drives Market Strength
- The top quintile of the S&P remains the earnings engine and is relatively insulated from tariffs and higher rates.
- That concentration sustains the market even as overall risk-reward becomes less compelling than in June.
AI CapEx Adds Both Upside And Risk
- AI capex is accelerating and creates a new earnings wrinkle despite existing fundamentals.
- Faster, larger AI investments raise both upside and execution risk across sectors.
K-Shaped Economy Helps Curb Inflation
- The K-shaped recovery helps keep inflation contained because strong top-end spending coexists with weak lower-end activity.
- That divergence favors asset prices and S&P performance driven by the upper half of the economy.