Bloomberg Surveillance Markets React to Last Major US Eco Data of 2025
13 snips
Dec 23, 2025 Jim Caron, Chief Investment Officer at Morgan Stanley, discusses the potential for a U-shaped recovery in 2026, emphasizing the importance of bonds in the current market. He predicts modest rate cuts and a positive trajectory for cyclical stocks. Randy Schwimmer, Vice Chair at Churchill Asset Management, highlights strong demand in private credit and how it thrives even in a lower rate environment. He also explains effective risk management in the private lending space, underscoring the importance of aligned interests between sponsors and lenders.
AI Snips
Chapters
Transcript
Episode notes
Gold Shortages Meet Rising Demand
- Gold's uptrend reflects persistent investor demand and limited supply, prompting some to recommend 10–15% allocations.
- Stephen Major suggests both personal and institutional portfolios may be underallocated to gold.
Grab The Coupon
- Grab the coupon: expect most bond returns in 2026 to come from coupons rather than capital gains.
- Position for front-end cuts and a sideways to slightly higher long-end, not dramatic yield collapse.
Bonds Won't Block Equities
- Bond markets are currently supportive of equities because credit spreads aren't widening and default risks remain low.
- Jim Caron sees bonds unlikely to block equity gains unless inflation shocks reappear in 2026.