Why the Midterms Actually Matter for Market Liquidity? With Andreas Steno & Mikkel Rosenvold

Market volatility is currently driven by a massive "degrossing" event, the most significant in over a decade, as hedge funds reduce exposure amid liquidity stress and shifting positioning. Despite this, the AI sector continues to demonstrate historically unprecedented growth, standing in sharp contrast to the prevailing market pessimism that views AI capital expenditure as unsustainable. Geopolitical developments, specifically Iran's increased willingness to negotiate, alongside the upcoming U.S. midterm elections, are critical variables influencing near-term market direction. While consensus remains skeptical of AI's long-term viability, the semiconductor industry maintains strong fundamental potential. The current market environment reflects a prudent, glass-half-empty approach, which may ultimately extend the current investment cycle longer than a period of unbridled euphoria would allow.