The Regime Change No One Sees | Adam Parker on Why Valuations Are Lying to You

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Oct 21, 2025

Adam Parker, Founder and CEO of Trivariate/Trivector Research and a former Morgan Stanley strategist, dives into the dynamics of modern markets. He argues for a long-term bullish outlook on U.S. equities, predicting the S&P 500 may hit 10,000 by 2030. Discussing major risks, he highlights hyperscaler capital expenditures and AI-driven unemployment. Parker contrasts today’s market with the dot-com bubble, emphasizing why traditional valuation methods now fail. He emphasizes structural advantages in U.S. innovation and practical advice for long-term investors.

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INSIGHT

S&P 10,000 By 2030 Case

Adam Parker projects the S&P 500 could reach 10,000 by 2030 based on 10% earnings growth and mid-20s multiples.
He argues market multiples may stay higher because the index now has a larger share of high gross-margin companies.

INSIGHT

Hyperscaler CapEx Is A Systemic Risk

Major risk: hyperscalers' rising CapEx could create diminishing returns and depress free cash flow for top firms.
Because the S&P behaves like an "AI index," such a pullback would hit many correlated stocks simultaneously.

INSIGHT

COVID Desynchronized Economic Cycles

COVID changed business cycles by desynchronizing industries and altering cycle amplitude and periodicity.
That fragmentation helps explain why macro indicators have failed to produce a uniform recession signal.

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Adam Parker, founder and CEO of Trivariate and Trivector Research, joins Excess Returns to discuss how fundamental, quantitative, and macro perspectives intersect to shape markets today. Parker shares his long-term bullish case for U.S. equities, why traditional valuation signals no longer work, the biggest risks he sees for investors, and how AI, inflation, and market structure are reshaping opportunities and risks in real time.

Main topics covered:

Why combining fundamental, quantitative, and macro analysis gives a clearer view of markets
The case for the S&P 500 reaching 10,000 by 2030
Structural reasons why market multiples may stay higher for longer
The key bear cases: hyperscaler CapEx risk, fiscal deficits, and AI-driven unemployment
Comparing today’s market to the dot-com era
Why traditional recession indicators have failed
How COVID changed the economic cycle and business synchronization
Inflation, tariffs, and what the Fed is really watching
Why valuation is a broken signal for stock picking
The quant factors that matter most today
ETF factor exposures and hidden risks
How to think about the 60/40 portfolio, diversification, and private markets
Why U.S. innovation and margins make it the dominant equity market
Key lessons and philosophies for long-term investors

Timestamps:
00:00 What really drives equity investing
03:00 Adam Parker’s background and multi-lens approach
05:00 Why he’s long-term bullish and sees S&P 10,000
08:00 Structural margin expansion and AI productivity
09:00 The three major bear cases
14:00 How today compares to the 1990s tech bubble
18:00 Why the economy has stayed resilient
20:00 COVID’s impact on business cycles
23:00 Market structure, inventory, and margins
24:00 Inflation, tariffs, and Fed outlook
29:00 Deficits and why timing macro risks is hard
32:00 Large vs small cap dynamics
37:00 Why valuation doesn’t work
41:00 Key quant factors to watch
43:00 ETF grading and hidden exposures
46:00 The 60/40 portfolio and asset allocation
51:00 U.S. vs Europe and innovation advantage
55:00 Lessons for investors and closing thoughts