AI Spend Has Been 'Critical' for US Economy, Says Torsten Slok

Watch on YouTube ↗  |  September 18, 2026 at 18:08  |  8:43  |  Bloomberg Markets
Speakers
Torsten Slok — Partner, Apollo Global Management

Summary

Torsten Slok of Apollo Global Management argues that AI spending is a critical, non-interest-rate-sensitive tailwind for the US economy, contributing about one percentage point to GDP growth alongside fiscal stimulus and the wealth effect. He notes that high rates are hurting housing and autos, while Europe should still do well due to defense and infrastructure spending. Slok warns that investors are overly concentrated in AI across equities, credit, and venture capital and should rebalance. He also sees upside risks to commodities from Middle East tensions and favors value and other diversifiers.

  • AI spending is supporting US GDP growth and corporate returns.
  • High interest rates weigh on homebuilders and autos.
  • Investors are heavily concentrated in AI across portfolios.
  • Slok recommends rebalancing away from AI concentration.
  • Middle East risks create upside for commodity prices, including oil refineries.
  • Europe may benefit from higher defense and infrastructure spending.
  • Value stocks are a potential diversifier from AI growth exposure.
  • European political and fiscal risks remain unresolved.
Ideas
Torsten Slok Partner, Apollo Global Management 0:56
High rates hurt homebuilders and autos.
High interest rates are hurting rate-sensitive sectors; homebuilders are at very low levels and autos are weak because elevated mortgage and lease financing costs make houses and cars expensive.
XHB CARZ HIGH
Torsten Slok Partner, Apollo Global Management 4:41
Rebalance away from concentrated AI exposure.
The AI story has driven S&P 500 returns and is now a single factor across portfolios: ten stocks make up 40% of the S&P 500, hyperscalers are increasingly issuing investment-grade credit, and 87% of venture capital is AI. Because investors should not be exposed to just one factor, they should rebalance away from concentrated AI exposure.
AIQ HIGH
Torsten Slok Partner, Apollo Global Management 5:24
Middle East risks lift commodity prices.
Middle East challenges argue for risks still to the upside for commodity prices; oil refineries are one way to express this diversification.
DBC CRAK MED
Torsten Slok Partner, Apollo Global Management 5:31
Rotate toward value over growth.
Because AI is obviously growth, investors should think more about growth versus value; value means investing in companies that actually have earnings, providing diversification away from AI growth exposure.
Value stocks MED
Torsten Slok Partner, Apollo Global Management 7:35
Europe supported by defense, infrastructure spending.
Despite political headwinds and fiscal challenges, Europe should still do well over the next several years because governments are significantly increasing defense and infrastructure spending, which will drive growth.
VGK HIGH
Up Next
2:27
iPhone 18 pro lands on shelves Friday
CNBC · Sep 18
53:30
Ep. 033 - 300 Data Center Bans, 3 Projects Delayed: Moratoriums Explained (Datacenter, Energy)
SemiAnalysis · Sep 18
25:47
Ron Paul On Surging Inflation, Oil Shock, Bond Market Collapse
The David Lin Report · Sep 18
1:10
College Students Look for a Leg Up to Get Job on Wall Street
Bloomberg Markets · Sep 18
2:58
'Hike Doesn't Change Fundamentals,' says Cetera's Goldman
Bloomberg Markets · Sep 18

This Bloomberg Markets video, published September 18, 2026, features Torsten Slok discussing XHB, CARZ, AIQ, DBC, CRAK, Value stocks, VGK. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Torsten Slok  · Tickers: XHB, CARZ, AIQ, DBC, CRAK, Value stocks, VGK