Squawk on the Street SOTS 2nd Hour: Mohamed El-Erian's Market Picture, Moody's Chief Economist, & Evercore's Top Tech Picks 11/26/25
15 snips
Nov 26, 2025 
Mohamed El-Erian, Chief Economic Adviser at Allianz, discusses the volatility in Fed policies and the economic ramifications of AI and rising debt. Mark Zandi, Chief Economist at Moody's, addresses America’s affordability crisis and suggests reforms like tariff rollbacks and immigration adjustments to ease economic pressure. Mark Mahaney, Head of Internet Research at Evercore, highlights strong fundamentals for tech giants like Alphabet and Amazon, analyzing AI's role in their market positions. Insights on the AI job market from a recent MIT study further enrich the conversation.
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Volatile Fed Expectations Undermine Stability
- Market rate-cut odds swung wildly from ~90% to 30% and back in a month, which Mohamed El-Erian calls destabilizing.
- He argues Fed guidance should provide predictable strategic outlooks, not day-to-day play-by-play.
AI Spending Creates A 'Rational Bubble'
- AI investment fuels demand now and promises future productivity gains, Mohamed El-Erian says.
- He warns of a 'rational bubble' where winners with structural edges outperform and many investors may not profit.
Alphabet: Quality Compounder, Limited Multiple Upside
- Mark Mahaney views Alphabet as a high-quality compounder with strong AI, monetization, and infrastructure advantages.
- He expects fundamentals to drive growth while valuation may not re-rate much higher from here.