Disorder Ep 142. Why are stock markets not crashing? With the FT’s Katie Martin
Sep 23, 2025
Katie Martin, a markets columnist at the Financial Times and host of the Unhedged podcast, dives into why stock markets are weathering political chaos. She highlights the tech rally and foreign dollar-hedging keeping markets buoyant, while questioning the impact of Trump's unpredictable tariffs. Discussions also cover the role of AI investments, the shift from public to private markets, and the potential for the euro to challenge the dollar's dominance. Martin offers insights into UK fiscal policies and the dynamics of gilts and treasuries in this complex landscape.
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Episode notes
Tech-Driven Market Masking Weakness
- US market highs are driven by a tiny number of mega-tech winners while the broader market lags.
- Global investors buy US equities but hedge dollar risk, signaling concern about US institutional credibility.
AI Trade Creates Single-Point Risk
- The AI/data-center boom concentrates risk in a single theme across public and private markets.
- A stumble in AI monetisation could hit both listed stocks and illiquid private funds hard.
Cheap Debt Grew Private Markets
- Cheap post-2008 borrowing fuelled a boom in private equity buyouts and made staying private attractive.
- Public markets shrank as companies delayed IPOs and private owners held assets longer.