Middle East tension REMAINS a source of market volatility: Crossmark Global Investments CEO

• Threats to risk assets are growing due to geopolitical tensions in the Middle East, inflation concerns, and rising interest rates.
• The market is overly concentrated in AI names, and extraordinary earnings growth, while strong, is poised to slow, making current valuations risky.
• Private credit default rates hit a record high in July, weighted towards smaller issuers, though the software sector has the lowest default rate.

Crossmark Global Investments CEO Bob Doll advises investors to trim risk in the current market, citing growing threats from Middle East tensions, inflation, and rising interest rates. Despite extraordinary earnings growth, he expresses concern about market overconcentration in AI names and the unsustainability of current growth rates. He also notes record high private credit default rates.