Ideas
US leads in AI technology.
He calls the sell-America trade misguided because the US leads in AI and technology, and that leadership differentiates it from the rest of the world.
Easy conditions support US stocks.
Financial conditions are very easy, credit spreads are tight, corporate profits are near record highs, the Fed's bias is toward easing, and the dollar is softer, which she says adds up to a pretty good environment for the stock market.
Yield curve will steepen.
She says the yield curve should steepen as the economy outperforms expectations, inflation does not come down as quickly as anticipated, and the Fed risks easing on an easing bias rather than holding steady; she expects longer-end yields to move higher.
Long-end yields may rise.
He thinks long-end Treasury yields could be higher, possibly closer to 5% than 4%, because growth risks are skewing higher from fiscal stimulus, the AI/data-center buildout, a lower dollar, and lower oil; if inflation stays sticky, Fed expectations may shift toward no cuts or even hikes.
10-year yields stay rangebound.
She sees no clear catalyst to break the range; Fed bill purchases and heavy front-end issuance with stable coupon issuance are keeping term premia and 10-year Treasury yields rangebound, even after the recent JGB selloff.
Curve steepens as front-end falls.
He expects the yield curve to continue steepening over time as 10-year Treasury yields stay in their recent range while front-end rates come down under a new Fed chair.
Foreign demand supports US assets.
He argues it is hard to sell America because foreigners come to the US for higher fixed-income yields and AI exposure; as long as US assets offer higher returns, global investors will keep buying them, and a weaker dollar would require either AI leadership to roll over or US rates to fall sharply.
Bob Michele
CIO and Head of Global Fixed Income, J.P. Morgan Asset Management
46:02
Bonds and credit look ideal.
He says the bond market looks about perfectly priced, incorporating reasonably good economic activity and disinflationary forces from tariffs and AI, making it an ideal market for bonds including credit.
Bob Michele
CIO and Head of Global Fixed Income, J.P. Morgan Asset Management
46:46
AI adoption keeps accelerating.
He sees AI as real and accelerating, with enormous capital needed to build the infrastructure and every line of business using AI to create efficiencies and scale.
Bob Michele
CIO and Head of Global Fixed Income, J.P. Morgan Asset Management
50:41
Sell America is hogwash.
He dismisses the sell-America trade as hogwash, saying clients are not diversifying away materially and that the breadth, depth, and size of US markets make them the best place to exercise fiduciary duty.
Floaters attractive if cuts delayed.
Because the Fed may not cut until later in the year, floating-rate securities should earn more carry than investors expecting falling coupons; he finds some floaters attractive.
Add non-dollar diversification.
Policies in place today, continued debt issuance, and fiscal concerns make it sensible for investors to add non-dollar diversification to both fixed income and equity portfolios.
Front-end credit offers good carry.
He favors shorter-duration credit at the front end of the curve because investors can still pick up 100-200 basis points over Treasuries without taking much interest-rate risk or spread duration.
Prefer securitized over tight high yield.
High-yield corporate credit spreads are very tight, but securitized markets backed by non-government-guaranteed residential and commercial mortgages and parts of ABS offer high-yield-like spreads with investment-grade ratings, structural protections, and hard assets.
Prefer securitized over tight high yield.
High-yield corporate credit spreads are very tight, but securitized markets backed by non-government-guaranteed residential and commercial mortgages and parts of ABS offer high-yield-like spreads with investment-grade ratings, structural protections, and hard assets.
This Bloomberg Markets video, published January 28, 2026,
features Tom Keene, Kathy Jones, Torsten Slok, Subadra Rajappa, Richard Clarida, Bob Michele, Ken Shinoda
discussing XLK, SPY, TLT, 10-Year Treasury Yield, US financial assets, AGG, AI-SECTOR, US assets, FLOT, non-dollar fixed income and equities, IGSB, Securitized Credit, non-agency MBS/ABS, HYG.
15 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Tom Keene,
Kathy Jones,
Torsten Slok,
Subadra Rajappa,
Richard Clarida,
Bob Michele,
Ken Shinoda
· Tickers:
XLK,
SPY,
TLT,
10-Year Treasury Yield,
US financial assets,
AGG,
AI-SECTOR,
US assets,
FLOT,
non-dollar fixed income and equities,
IGSB,
Securitized Credit,
non-agency MBS/ABS,
HYG
