The three top equity market themes

In this episode of "The Markets," Chris Hussey interviews Lou Miller from Goldman Sachs about the current state of the market, which Miller describes as "bulletproof" due to factors like unrealized fears, the AI narrative, and fiscal stimulus. They discuss how clients are using baskets—collections of stocks in one tradable vehicle—to invest in AI, policy changes like financial deregulation, and specific international markets, such as European defense and Japanese corporate governance. Miller expresses a belief in U.S. exceptionalism but acknowledges opportunities in undervalued international markets. He highlights AI adoption by corporate America as a key area for potential margin benefits and anticipates a positive earnings season, driven by better-than-expected margins due to built-up inventory and the potential for a cutting cycle.