“If there is no similar response that’s viewed as a point of weakness, and I don’t think either side wants to have that going into this potential meeting.” – 01:19
Chris Versace, the Chief Investment Officer and Thematic Strategist at Tematica Research, joins Remy Blaire at the New York Stock Exchange to discuss the ongoing trade tensions between the U.S. and China. Chris explains that these renewed concerns are weighing on market sentiment and anticipates continued volatility leading up to the expected meeting between President Trump and President Xi in South Korea later in the month. He emphasizes the importance of game theory in this context, suggesting that neither side wants to appear weak ahead of the meeting.
The conversation shifts to the upcoming earnings season and the Federal Reserve meeting at the end of the month. Remy asks Chris what he is monitoring in the markets, and he responds by discussing the need to evaluate market multiples and earnings growth. He points out that while recent bank earnings have been strong, it is crucial to see similar performance across other sectors to maintain market momentum.
Remy and Chris then address the topic of artificial intelligence, particularly the concerns surrounding a potential bubble in the sector. Chris draws parallels to the internet bubble, discussing the possibility of overcapacity in AI and data centers. However, he reassures listeners that AI adoption is still in its early stages, suggesting that there is ample time for growth as long as usage continues to rise.
The segment also touches on the smartphone market, with Remy asking Chris about Apple’s anticipated foldable iPhone set to launch next year. Chris shares that he has recently raised his price target for Apple, citing strong revenue from key partners and an expected increase in organic light-emitting diode shipments. He highlights the significance of the foldable iPhone for Apple’s revenue and its positive implications for Universal Display, a key component supplier.