How to Navigate U.S.-China Tensions

The podcast discusses the complex and evolving relationship between the U.S. and China, highlighting their economic interdependence despite strategic competition and recent trade tensions like rare earth export controls and proposed tariffs. It suggests that a full economic decoupling is unlikely due to staggering costs, with rolling negotiations and truces being a more probable long-term dynamic. For fixed income investors, this implies increased U.S. industrial policy, particularly in AI, creating investment opportunities in data center financing, while near-term growth risks and fiscal sustainability concerns could lead to lower bond yields and steeper yield curves.