Ideas
Europe stagflation risk worse than US
European data look more like stagflation, and if stagflation is the risk, Europe is more vulnerable than the U.S. this year; euro strength should be capped.
Tesla leads autonomous physical AI
Tesla is one of the two best physical AI plays, with the next phase of AI shifting toward autonomous and robotics; Elon Musk is a wartime CEO and the autonomous chapter is coming.
AI bull market continues in 2026
AI is only in the third inning; the next phase of physical AI, autonomous, robotics, and consumer AI will drive tech stocks up another 20-25% in 2026 and produce another bull market for tech and AI.
Nvidia leads physical AI revolution
Nvidia is one of the two best physical AI plays, well ahead of any chipmaker, and remains a core U.S. AI winner as AI moves into its next phase.
China tech gap narrows
He is bullish on China tech despite politics; the U.S. leads but China is narrowing the gap, with Alibaba and BYD among robotics, autonomous, and EV plays.
Apple enters consumer AI race
Apple is finally joining the AI party and will start participating in the consumer AI revolution.
Microsoft AI monetization drives earnings
Microsoft has 25-30 billion dollars of incremental AI monetization already reflected in the stock, and January earnings season will be the show-me story.
Latin America offers rebuild opportunity
Emerging markets should do well, especially Latin America and South America, as the U.S. works with close allies and rebuilds supply chains, creating more business opportunity.
Intel benefits from government support
The government's 10% stake encourages the administration to drive business Intel's way; its technology is improving, design and manufacturing separation helps, and Intel is his favorite data center AI pick tied to production for security.
Commodity demand builds over years
The factory and electricity buildout will take years and put huge demand on commodities; he sees the metals trade in the early stages.
Avoid Southeast Asia for now
He is reluctant to be too invested in Southeast Asia as the U.S. turns its attention to the Monroe Doctrine and the Western Hemisphere.
US rare earth refining opportunity
China controls 60% of rare earth extraction; the U.S. urgently needs refining and processing capacity, and deregulation, government investment, and private capital create opportunities.
India emerging as AI player
India has the potential to become a burgeoning AI player, making it an interesting investment play.
Dollar multiyear decline continues
The dollar peaked in 2022, remains terribly overvalued, and its multiyear decline should continue, driven by Fed cuts, BOJ hikes, and policy differentials.
Gold and silver outperform dollar
He is convinced gold and silver will outperform the dollar due to de-dollarization, weaponization of metals, China's silver export restrictions, and the U.S. designating silver as strategic.
S&P upside led by AI
The first half should see S&P upside with AI leading; an improvement in real yields can take the S&P higher, and rates matter more than any earnings miss.
Long-end Treasury yields push higher
An underappreciated risk is term premium and Treasury supply; fiscal profligacy, midterms, deficits, heavier issuance, and credibility risk push back-end yields higher and can reset valuations.
Emerging markets benefit from dollar weakness
Global investors are moving away from a saturated, highly valued U.S. into emerging markets outside China, especially Asia and Latin America, with a weaker dollar, curbed inflation, and rate cuts offering juice.
Dollar continues lower
The U.S. dollar continues to move lower, favoring emerging markets in a risk-on environment.
Nvidia CES event may aid visibility
CES is all about AI; Nvidia is the main event with its own Las Vegas event, and substantive commentary on the AI infrastructure supply chain could provide real earnings visibility.
DRAM shortage lifts memory prices
Memory chips are in short supply; DRAM for data centers is driving prices higher and raising PC manufacturing costs.
RJ Gallo
Deputy CIO for the Fixed Income Group, Federated Hermes
124:55
Treasury curve steepening remains highest conviction
Steepening remains his highest conviction; Fed easing with slow job creation and lingering inflation should push short-end yields down and long-end yields up, supported by term premium and fiscal stimulus.
RJ Gallo
Deputy CIO for the Fixed Income Group, Federated Hermes
126:30
Corporate credit spreads too tight
Corporate spreads are very tight, in his view too tight; he is underweight corporate credit due to tight spreads and supply/demand risks.
RJ Gallo
Deputy CIO for the Fixed Income Group, Federated Hermes
128:27
ABS more attractive than corporates
He is more constructive on asset-backed securities; private credit problems are idiosyncratic, not systemic, and ABS offers better relative value.
EV sales momentum is fading
EV battery sales momentum is losing steam; U.S. sales may decline after federal tax credits expired, with payback carrying into early 2026.
Hybrids like Prius sell strongly
U.S. consumers are shifting to conventional hybrids like the Toyota Prius, which have been selling strongly as automakers retreat from battery EVs.
Tesla sales declines raise concerns
Tesla Q4 deliveries are expected to fall 11-15%; EV momentum is losing steam, tax credit payback weighs, and if declines continue, robotaxi execution questions make the company's state troublesome.
This Bloomberg Markets video, published January 02, 2026,
features Jeff Hewitt, Dan Ives, Peter Tchir, Marc Chandler, Kate Rooney, Ed Ludlow, RJ Gallo, Craig Trudell
discussing VGK, TSLA, XLK, AI-SECTOR, NVDA, KWEB, BABA, 1211.HK, AAPL, MSFT, Latin America, INTC, DBC, Southeast Asia, REMX, INDA, UUP, GLD, SILVER, SPY, TLT, EEM, DRAM, Treasury curve steepener, LQD, ???, DRIV, TM, Hybrid vehicles.
27 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Jeff Hewitt,
Dan Ives,
Peter Tchir,
Marc Chandler,
Kate Rooney,
Ed Ludlow,
RJ Gallo,
Craig Trudell
· Tickers:
VGK,
TSLA,
XLK,
AI-SECTOR,
NVDA,
KWEB,
BABA,
1211.HK,
AAPL,
MSFT,
Latin America,
INTC,
DBC,
Southeast Asia,
REMX,
INDA,
UUP,
GLD,
SILVER,
SPY,
TLT,
EEM,
DRAM,
Treasury curve steepener,
LQD,
???,
DRIV,
TM,
Hybrid vehicles
