Over The Moon

RBC BlueBay notes that while AI-driven retail euphoria and the SpaceX IPO hype are pushing markets to new highs, fundamental risks from inflation, central bank tightening, and tight credit spreads remain overlooked.

Key Takeaways

• 1.Bullish retail sentiment and AI euphoria are driving U.S. equities to record highs, specifically in semiconductor stocks.
• 2.The upcoming SpaceX IPO faces skepticism from institutional investors regarding its USD 1.75 trillion valuation given its recent losses.
• 3.Central bank policy is diverging, with the ECB and BoJ expected to hike soon while the Fed and BoE remain on hold.

Table of Contents

• Over the moon
• SpaceX IPO: gravity defying or grounded?
• Key points:
• Looking ahead
• Contact:
• About RBC BlueBay Asset Management