In this episode of "The Compound and Friends," Josh Brown and Michael Batnick are joined by Richard Bernstein to discuss the implications of the new tax bill, deficit concerns, and bond market trends, including the rising 30-year Treasury rate. They analyze the potential impact of fiscal policy on the economy, debate whether inflation or real GDP growth is driving interest rates, and examine the stock market's reaction to bond auctions. The conversation shifts to diversification strategies, questioning the dominance of the "Magnificent Seven" stocks and exploring opportunities in international quality and consumer staples. They also delve into the influence of private debt on the economy, the potential for future Fed rate cuts, and the transformative impact of AI on the labor market.
