Maggie Lake Talking Markets Episode 54: Is it Time To Sell America? With Jeremy Schwartz.
May 19, 2025
Jeremy Schwartz, Global CIO at WisdomTree, discusses the recent U.S. credit rating downgrade and its impact on bond yields versus stock market sentiment. He highlights shifting global investment attitudes, particularly from South Korea, as funds move from U.S. assets to international opportunities. The conversation broadens to Bitcoin's potential as a competitive asset amid economic uncertainty and gold's ongoing significance in inflationary contexts. Together, they navigate the evolving landscape of asset allocation and market dynamics.
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Episode notes
No Liz Truss Moment Yet
- US deficits and tax cuts raise concerns about higher treasury yields, but no Liz Truss-style crisis has occurred yet. - Yields near 5% could pressure markets, but current budget talks don't indicate a sudden spike.
Technology Could Boost Productivity
- Productivity growth may accelerate due to new technology despite some job displacement from efficiency drives. - Technologies like AI could enhance worker productivity, leading to increased hiring rather than replacement.
Stay Short Duration on Bonds
- Avoid long-duration bonds now as yields do not offer normal premiums above Fed funds rates. - Short duration is preferable due to Fed's slow response and risks of rising rates.
