Behind the Markets Podcast The EBB and Flow: An Equity Bond Barbell Outlook for '26
Dec 19, 2025
Andreas Kern, founder of Wikifolio, sheds light on shifting behavior among German retail investors, revealing a pivot towards industrials and value strategies for 2026. He discusses sentiment around Tesla, AI narratives, and rising defense spending. Jim Bianco from Bianco Research shares insights on the bond market, emphasizing the need for active management and exploring unusual trends like rising long-term yields despite expected Fed cuts. Both guests provide unique perspectives on evolving market dynamics and retail investor priorities.
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Shelter Leads A Downward Inflation Trend
- Jeremy Siegel sees shelter and rental components finally pushing CPI down and expects disinflation through most of 2026.
- He believes this gives the Fed room to cut rates if the economy weakens and 10-year yields stay in the low-4% range.
Tesla As The First Major AI Breakthrough
- Jeremy Siegel pointed to full self-driving at Tesla as a potential near-term AI breakthrough that could change the economy.
- He guessed it might be implemented within five years and praised Musk's progress relative to legacy automakers.
German Retailers Favor Industrials And Value
- Andreas Kern reports German retail traders overweight industrials and materials and maintain a value tilt versus MSCI.
- He notes Tesla and NVIDIA are popular but often held at smaller weights, showing selective stock picking.