RiskReversal Pod Lori Calvasina: Is This the Start of the AI Bubble Deflating?
8 snips
Nov 21, 2025 
Lori Calvasina, Head of U.S. Equity Strategy at RBC Capital, shares her insights on market volatility and AI valuations. She discusses investor anxiety around potential Fed rate cuts and how this has impacted market support. Notably, she highlights consumer spending patterns and the risks of heavy capital expenditures in tech. The conversation also delves into geopolitical concerns, especially relating to China, and the implications of the upcoming U.S. midterms on markets. Lori emphasizes the importance of monitoring market dynamics and investor sentiment.
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Valuation Ceilings Are Pressuring Tech
- Valuations have hit cycle ceilings since August and are constraining upside in tech names.
- Lori Calvasina says investors are nervous because much of the good news was already priced in.
Market Follows Fed Cut Expectations
- Fed rate-cut expectations rose then fell and that shift pulled the rug out from the market.
- Calvasina links priced-in cuts to S&P performance and small-cap leadership.
Plan For A 5–10% Pullback
- Prepare for a garden-variety pullback of roughly 5–10% rather than a deep recession sell-off.
- Monitor economic data and recession chatter to reassess risk levels if negativity increases.