Excess Returns The $9 Trillion Risk | Rupert Mitchell on the Unwind of US Dominance - And What Comes After It
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Jun 7, 2025 Rupert Mitchell, founder of Blind Squirrel Macro, shares his wealth of experience on global market dynamics and investment strategy. He discusses how European pension funds are reconsidering their U.S. equity exposure and examines the implications of the powerful dollar. Mitchell offers insights into the Bushy portfolio, its innovative approach, and why the traditional 60/40 model is faltering. With a humorous take, he also explores the fierce rally of retail investors and the enduring dominance of the Magnificent Seven in the market.
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$9 Trillion European Pension Risks
- European pension funds hold $9 trillion in US equities and are reconsidering this overweight allocation due to currency and performance issues.
- Their shifts will impact global markets, causing asset reallocations that leave significant market marks.
Nvidia's Market Dominance
- Nvidia drives 22% of May's S&P 500 stock market gains alone, highlighting its dominance in AI and tech.
- This showcases how one company can heavily sway overall market performance.
Retail Powers Market Rallies
- Retail investors have unexpectedly driven recent market rallies by buying dips, defying professional and institutional investors.
- Professionals left early due to policy uncertainty, creating an environment where retail dominates market flow.
