UGO13: How Much Longer Can AI Carry the Market ft. Christian Mueller-Glissmann

The current macro regime reflects a tension between innovation and inflation, where the bond market serves as a critical speed limit for equity performance. The AI-driven capital expenditure boom has fueled nominal growth and earnings, yet these gains appear increasingly fragile, relying on debt-financed spending that threatens long-term sustainability. While equity valuations remain elevated, the market is beginning to discount cyclical earnings, signaling potential mean reversion. Rising bond yields, driven by fiscal imbalances and structural shifts, are crowding out liquidity and creating a feedback loop that challenges traditional 60/40 portfolio models. Given this environment, investors should prioritize defensive diversification through gold, real assets, and FX volatility to hedge against geopolitical uncertainty and currency debasement. Christian Mueller-Glissmann, Head of Asset Allocation Research at Goldman Sachs, emphasizes that managing these risks requires moving beyond standard equity exposure toward more robust, volatility-aware portfolio construction.