How Much Is $1 Trillion? | Animal Spirits 469

Watch on YouTube ↗  |  June 17, 2026 at 13:00  |  1:07:34  |  The Compound News
Speakers
Michael Batnick — Managing Partner, Ritholtz Wealth Management
Ben Carlson — Director of Institutional Asset Management, Ritholtz Wealth Management

Summary

Michael Batnick and Ben Carlson discuss AI market dynamics, with Michael suggesting a washout could be a buying opportunity rather than a crash. Ben highlights value stocks, emerging markets, and European equities as outperformers and diversifiers. They also touch on oil market efficiency, homebuilder stocks, and the SpaceX IPO frenzy.

  • AI hype may lead to a correction but unlikely a dot-com style crash; could be a buying opportunity.
  • Value stocks (VTV) outperforming growth (VUG) driven by cheap earnings of memory companies.
  • Emerging market equities surging, led by Korea and Taiwan tech, surprising many investors.
  • European stocks provide a low-tech hedge against an overconcentrated US market.
  • Residential real estate stocks showing signs of life as homebuyers accept high prices.
  • Economy remains resilient with strong consumer spending despite inflation.
  • Agentic trading platforms raise questions about investor behavior with AI-managed portfolios.
Ideas
Michael Batnick Managing Partner, Ritholtz Wealth Management 1:48
AI washout is buying opportunity
AI is a life-changing technology and a potential 25-30% bear market driven by AI would not be an end-of-world crash but a great buying opportunity, because the world will move on and AI remains transformative.
AIQ MED
Ben Carlson Director of Institutional Asset Management, Ritholtz Wealth Management 14:07
Value stocks winning on cheap earnings
Value stocks are beating growth this year, with Vanguard Value ETF (VTV) outperforming Vanguard Growth ETF (VUG) by 7-8%. The outperformance is driven by cheap earnings of memory stocks now classified as value, proving that these value stocks have real fundamentals, not just an AI narrative.
ETF HIGH
Ben Carlson Director of Institutional Asset Management, Ritholtz Wealth Management 16:30
EM equities are AI earnings surprise
Emerging market equities are up 26% YTD with earnings growth dwarfing other regions, heavily driven by AI-exposed Korean and Taiwanese tech (e.g., SK Hynix, Samsung). The EM index has shifted from China-dominated to Korea/Taiwan-led, making EM the unexpected big winner of the AI era, demonstrating the power of diversification.
EEM HIGH
Ben Carlson Director of Institutional Asset Management, Ritholtz Wealth Management 18:46
Europe as safe haven from AI
European stocks offer a diversification hedge against the concentrated AI trade in the US. They are severely underweight tech and have less price buildup, so they would likely fall less if the S&P 500 declines, acting as a port in the storm.
VGK MED
Michael Batnick Managing Partner, Ritholtz Wealth Management 54:00
Homebuilders bullish on pricing acceptance
Despite horrific affordability, there is a gradual realization that current home prices are the new normal, and the largest demographic cohort still needs to buy houses. This, combined with a bounce in homebuilder stocks and accelerating existing home sales, makes residential real estate stocks bullish, though the call could be early.
XLRE LOW
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This The Compound News video, published June 17, 2026, features Michael Batnick, Ben Carlson discussing AIQ, ETF, EEM, VGK, XLRE. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Michael Batnick, Ben Carlson  · Tickers: AIQ, ETF, EEM, VGK, XLRE