Need To Think More About Fixed Income: Slok

• Economic tailwinds from AI, infrastructure, and new business formation are driving nominal GDP to record highs.
• Consumer confidence is low due to high interest rates affecting housing, autos, healthcare, and education costs.
• Interest rates are expected to remain higher for longer, making fixed income and high-quality private markets attractive for investors.
• AI and blockchain technology could lead to frictionless money movement, potentially increasing market volatility and disrupting traditional checking accounts.

Economists discuss the bifurcated US economy, driven by strong tailwinds from AI spending and infrastructure, but facing headwinds from high interest rates impacting consumers. They recommend a strategic shift towards fixed income and high-quality private markets due to 'higher for longer' interest rates and the potential for AI to disrupt traditional banking.