Frances Newton on Trump's Achilles Heel & AI Moving Between Bottlenecks

• Geopolitical tensions are driving oil prices higher, but the primary concern for the U.S. remains high bond yields due to overleveraging and upcoming elections.
• The bond market is increasingly proactive in pricing in economic factors and Fed actions, often moving ahead of official announcements.
• The AI story is robust, but the 'bottleneck trade' is continuously evolving, with current focus on memory and infrastructure assets that AI enhances without disrupting.

The discussion centers on the impact of geopolitical tensions, particularly the U.S.-Iran conflict, on oil prices and U.S. bond yields, highlighting yields as a critical 'Achilles heel' for the U.S. economy. It also addresses the robust AI trade, emphasizing that while the narrative is intact, investment opportunities are shifting to foundational infrastructure rather than just high-flying tech.