Bloomberg Surveillance Market Rally Falters Ahead of Earnings
12 snips
Oct 9, 2025 
Jay Timmons, President and CEO of the National Association of Manufacturers, discusses the critical state of U.S. manufacturing, highlighting workforce shortages and the need for training amidst 400,000 unfilled jobs. He also delves into the impact of tariffs and regulatory policies. Meanwhile, James Steel, Chief Commodities Analyst at HSBC, analyzes the ongoing safe-haven rally in gold and silver, the constraints on gold production, and the dynamics of demand from institutions versus retail investors. The conversation uncovers fascinating insights on market trends and geopolitical influences.
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Market Concentration Creates Inertia
- Market concentration is at or near all-time highs and creates inertial forces that reinforce large-cap dominance.
- Sebastien Page expects drawdowns to broaden leadership and favors non-US and value exposures for diversification.
Diversify With Non-US Value And Credit Workouts
- T. Rowe Price is overweight non-US stocks and value to achieve diversification amid U.S. concentration.
- They also maintain broad credit exposure while doing bottom-up default-probability analysis in high yield.
Earnings Support Current Valuations
- Earnings growth still underpins current market valuations, which weakens the simple 'bubble' narrative.
- Page notes today's large tech winners are cash-flow generating businesses, unlike some 1990s-era speculative names.