Bloomberg Daybreak: Asia Edition Stocks Gain as Tech Rally Spurs S&P Record
Sep 23, 2025
Michael Green, Chief Strategist at Simplify Asset Management, shares insights on the recent tech-driven rally boosting S&P 500 records. He explores Nvidia's significant investment in OpenAI and its implications for AI advancements. Green sheds light on the risks posed by inflation and restrictive Fed policies, while also discussing gold's growing demand among central banks. Meanwhile, Daniel Lam emphasizes opportunities in Asian tech markets amid broader macro risks, urging investors to capitalize on leading tech stocks.
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Narrow Tech Rally Masks Market Fragility
- The S&P's record highs are driven by a narrow tech-led rally, not broad market strength.
- Vendor financing (e.g., NVIDIA taking equity in OpenAI) is inflating demand and may be unsustainable.
Hedge Credit Risk Without Costly CDS
- Hedge credit exposure by targeting credit-spread widening without costly CDS.
- Use overlay strategies within high-yield products to protect against tightening funding markets.
Seasonal Effects Could Reignite Inflation
- Inflation may reaccelerate in Q4 due to atypical seasonal adjustments and firms keeping higher prices.
- That could derail expectations for aggressive Fed rate cuts and keep policy tighter for longer.