Bloomberg Surveillance Retreat From Risk Assets Fades
7 snips
Dec 2, 2025 Wei Li, Global Chief Investment Strategist at BlackRock, shares insights on AI-driven investments, warning of energy constraints while discussing market implications. Meredith Whitney, CEO of Meredith Whitney Advisory Group, highlights the financial strain on lower-income consumers due to student debt and shifting spending patterns. Cameron Dawson, Chief Investment Officer at NewEdge Wealth, analyzes potential year-end rallies, retail trader behavior, and the landscape for fixed income returns, offering a detailed look at current market conditions.
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AI Capex Needs New Revenue Streams
- BlackRock sees AI-driven capex as huge but current revenue forecasts fall short of justifying $8 trillion spending by 2030.
- If AI creates new revenues beyond existing business lines and growth breaks the 2% trend, the investment case strengthens.
Diversification Is A Mirage
- Diversification may be a mirage because a few principal components, like AI, now drive markets.
- Passive diversification can become large unintended active bets, so make big calls intentionally.
Account For Energy Limits
- Expect energy to be a binding constraint as AI ambitions require massive power and infrastructure.
- Consider energy constraints when assessing AI capex and related sector exposures.