A resurgence of core inflation driven by commodity and tech component prices.
Hedge fund leverage is at post-2008 highs and is highly concentrated in the same trades, creating systemic risk.
The influx of capital into private credit has led to poorly structured deals and a potential decline in underwriting quality.
Market is driven by 'animal spirits' where traditional valuation metrics are being ignored.
Opportunities Identified
The AI capital expenditure cycle is being extended into 2027, providing a long runway for tech and infrastructure investment.
S&P 500 forward earnings growth is at 29%, a level historically seen only after major crises, indicating strong corporate profitability.
Memory chip companies like Micron are experiencing a fundamental shift in valuation and profitability, with guided gross margins hitting an unprecedented 81%.
The private credit market continues to offer double-digit yields with senior secured positions for disciplined investors.