Bloomberg Surveillance Bloomberg Surveillance TV: October 31st, 2025
11 snips
Oct 31, 2025 
Jim Caron, Chief Investment Officer at Morgan Stanley, discusses the disconnect between market valuations and the actual economy, warning of potential fragility due to rising household equity ownership. Gene Munster, Managing Partner at Deepwater Asset Management, highlights Apple's promising iPhone demand and the anticipation for its AI initiatives, while cautioning about its regulatory challenges. Winnie Cisar from CreditSights analyzes Meta's significant bond sale and its implications for AI-driven debt financing, pointing out potential risks for corporate credit. Ed Mills, Washington policy analyst, evaluates recent US-China tech diplomacy and its effects on the semiconductor sector.
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Narrow Rally Masks Economic Weakness
- Markets diverge: a handful of mega-cap tech names are driving gains while broader stocks show cracks.
- The market is not the economy, so narrow leadership can mask underlying economic weakness.
Tax Package As A 2026 Consumption Tailwind
- The new tax package could put roughly $160–170 billion back into consumers' pockets next year.
- That fiscal tailwind may support consumption and profit margins into 2026 despite current labor market weakness.
Diversify Beyond Mega-Cap Tech
- Diversify portfolios to withstand potential large-cap tech drawdowns.
- Hold high-quality bonds or treasuries and maintain liquidity to preserve capital and income.