Equity risks and alts opportunities

This episode explores the current state of the US stock market amid tariff uncertainties and recession fears, featuring insights from David Kostin and Padi Raphael. Against the backdrop of market recovery to pre-tariff levels, Kostin explains that the market's initial shock from tariff announcements quickly pivoted to optimism due to a delayed implementation, leading to a rally fueled by expectations of avoiding a recession. More significantly, the conversation addresses concerns about high market valuations relative to recession probabilities and the potential impact of tariffs on second-quarter earnings, particularly regarding who will bear the increased costs. Padi Raphael shares perspectives from the RIA Professional Investor Forum, noting investor engagement despite uncertainty and a growing interest in products that capitalize on market volatility. As the discussion pivoted to global investment opportunities, Kostin notes that while US markets offer higher growth and profitability, a potentially weakening dollar and attractive valuations abroad are causing some capital repatriation, particularly among European investors. The episode concludes with a discussion on the increasing interest in private markets and the importance of diversification, highlighting the risks associated with concentrated stock positions and what this means for retail investors.