Bloomberg Surveillance 8/18/2026

Watch on YouTube ↗ | August 18, 2026 at 16:19 | 2:24:21 | Bloomberg Markets

Speakers

Russ Koesterich — Chief Investment Strategist, BlackRock

Kay Herr — CIO of US GFICC, JPMorgan Asset Management

Stuart Kaiser — Head of US Equity Trading Strategy, Citi

Timm Schulze-Melander — Head of Technology Hardware and Semi Research, Rothschild & Co. Redburn

Robert Tipp — PGIM Fixed Income Managing Director, Chief Investment Strategist, Head of Global Bonds

Seema Shah — Chief Global Strategist, Principal Asset Management

Oliver Chen — Retail Analyst at Cowen

Ira Jersey — Bloomberg Intelligence Chief US Interest Rate Strategist

Jason Draho — UBS Chief Investment Office Head of Asset Allocation

Lindsay Dutch — Bloomberg Intelligence

Amanda

Mark Cabana — Co-Head of U.S. Short Rate Strategy, BofA Securities

Summary

Global bond markets are experiencing a significant selloff, with 30-year US Treasury yields reaching their highest levels since 2007. The surge in yields is driven by a combination of massive corporate debt issuance for AI infrastructure, sticky inflation, and uncertainty surrounding the Federal Reserve's reaction function. Despite the rising cost of capital, equity markets have remained relatively resilient, though concerns are growing about the sustainability of the tech-led rally.

30-year US Treasury yields hit their highest levels since 2007.
Massive corporate debt issuance, particularly from hyperscalers, is crowding out the bond market.
Energy stocks are highlighted as the most effective portfolio diversifier amid geopolitical risks.
Apple's upcoming entry into the foldable phone market is expected to drive a new upgrade cycle.
Investors are advised to broaden equity exposure into cyclicals and global AI infrastructure.
The Federal Reserve faces pressure to clarify its inflation strategy to stabilize the long end of the yield curve.

Ideas

Russ Koesterich Chief Investment Strategist, BlackRock 8:44

Energy stocks provide the best portfolio diversification.

Energy stocks are the most effective portfolio diversifier right now due to ongoing geopolitical risks and lack of resolution, as traditional macro hedges like bonds and gold are moving in tandem with equities.

Kay Herr CIO of US GFICC, JPMorgan Asset Management 41:00

High yields are driving strong fixed-income demand.

There is strong demand for fixed income, specifically ultrashort income, core bonds, and high-yield credit, because yields in the 6% to 7% range are highly attractive to investors and retirees seeking income.

Stuart Kaiser Head of US Equity Trading Strategy, Citi 59:57

Buy power and infrastructure suppliers for AI.

The global AI and data center buildout is a massive industrial cycle; investors should own the suppliers of this infrastructure, particularly in the power sector, which represents the tightest bottleneck.

Timm Schulze-Melander Head of Technology Hardware and Semi Research, Rothschild & Co. Redburn 78:37

Apple's foldable phone will drive upgrade cycle.

Apple's upcoming entry into the ultra-premium foldable handset market is underappreciated and will drive a new upgrade cycle with highly differentiated technical features and premium pricing.

Robert Tipp PGIM Fixed Income Managing Director, Chief Investment Strategist, Head of Global Bonds 95:28

Government bond yields will stabilize around 5%.

US Treasury yields could continue to leak higher because non-US investors now have real alternatives, such as Japanese Government Bonds, which offer higher yields than US debt after hedging for currency risks.

Seema Shah Chief Global Strategist, Principal Asset Management 105:54

Favor global AI infrastructure, financials, and credit.

Equities remain attractive, particularly in global AI infrastructure layers and choke points outside the US, as well as in financials and banks which offer good valuation opportunities in a strong growth environment. High quality credit is preferred within fixed income.

Oliver Chen Retail Analyst at Cowen 114:24

Walmart's alternative revenue streams drive impressive execution.

Walmart is executing impressively by leveraging technology and alternative recurring revenue streams like advertising and marketplace, while Target remains a hold as it attempts to introduce new products.

Oliver Chen Retail Analyst at Cowen 114:24

Walmart's alternative revenue streams drive impressive execution.

Walmart is executing impressively by leveraging technology and alternative recurring revenue streams like advertising and marketplace, while Target remains a hold as it attempts to introduce new products.

Ira Jersey Bloomberg Intelligence Chief US Interest Rate Strategist 123:55

JGBs offer attractive alternatives to US Treasuries.

US Treasury yields could continue to leak higher because non-US investors now have real alternatives, such as Japanese Government Bonds, which offer higher yields than US debt after hedging for currency risks.

Jason Draho UBS Chief Investment Office Head of Asset Allocation 142:47

Broaden equity exposure into cyclical market sectors.

Investors should lean into the cyclical parts of the equity market to capitalize on a broadening rally supported by benign macro conditions, while avoiding overconcentration in mega-cap tech names.

Jason Draho UBS Chief Investment Office Head of Asset Allocation 142:47

Broaden equity exposure into cyclical market sectors.

Investors should lean into the cyclical parts of the equity market to capitalize on a broadening rally supported by benign macro conditions, while avoiding overconcentration in mega-cap tech names.

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ETF Edge Social Clip 8/17

This Bloomberg Markets video, published August 18, 2026, features Russ Koesterich, Kay Herr, Stuart Kaiser, Timm Schulze-Melander, Robert Tipp, Seema Shah, Oliver Chen, Ira Jersey, Jason Draho discussing XLE, AGG, HYG, Ultrashort income, AIQ, XLU, AAPL, TLT, LQD, Global AI infrastructure, XLF, TGT, WMT, JGBUX, XLK, Cyclical equities. 11 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Russ Koesterich, Kay Herr, Stuart Kaiser, Timm Schulze-Melander, Robert Tipp, Seema Shah, Oliver Chen, Ira Jersey, Jason Draho · Tickers: XLE, AGG, HYG, Ultrashort income, AIQ, XLU, AAPL, TLT, LQD, Global AI infrastructure, XLF, TGT, WMT, JGBUX, XLK, Cyclical equities