Squawk on the Street SOTS 2nd Hour: A Jenga-Tower Economy? Buffett's Alpha-bet, & Goldman's Small Cap Picks 11/17/25
Nov 17, 2025
Rebecca Patterson, former Chief Investment Strategist at Bridgewater, argues that the U.S. economy resembles a precariously balanced 'Jenga tower', relying heavily on AI spending and affluent consumers. Greg Torto from Goldman Sachs shares insights on small-cap investments, highlighting potential benefits from improving earnings and strategic M&A. Barton Crockett, a senior analyst at Rosenblatt, provides a cautious perspective on Alphabet's valuation amidst fierce competition and AI risks. The conversation is packed with intriguing market dynamics and investment strategies!
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Economy As A Jenga Tower
- Rebecca Patterson argues the U.S. economy is a Jenga tower propped by AI spend and wealthy consumers.
- That narrow concentration raises risk if any pillar weakens and warrants risk management now.
Three Pillars Must All Hold
- Patterson says stock prices, affluent consumers, and AI spending must all stay firm to sustain the rally.
- A shock to any of those links can cascade through markets and consumer spending.
Balance Sheets Offer A Buffer
- Patterson notes limited leverage in AI firms and strong balance sheets provide some optimism.
- Buybacks and upcoming tax refunds add tactical support for consumer spending next year.