Torsten Slok

Institutions, all these discussions.

And then you ask at the end of the beer, well, how are you even investing your money?

Are we still buying dollar assets?

Because dollar assets still offer great returns, again, higher levels of yields.

Also in AI exposure, you don't get much AI exposure if you invest only in European stocks.

You don't get much AI exposure in Japan, Canada and Australia.

So the U.S.

offers things that are simply not being offered by the rest of the world.

And what are the consequences of the K-shaped situation for the consumer from a broad macro perspective?

The weekly, the monthly retail sales data is still reasonably okay.

Does this matter later this year, or how do you think about the K-shaped situation?

Is it something that the Fed should take into account, or why does this matter from a macro perspective?

Well, the challenge, of course, is that the AI boom has been the main driver for so long.

But if you implement policies, of course, that ultimately says that we want fewer goods and fewer people to come into the country, the risk is that that, of course, does come deglobalization with a risk of higher inflation, risk of higher inflation in prices, risk of higher inflation in wages.

So that's why if we are, and this is not only the US, this is also Europe, this is also Europe.

across the OECD area, you're seeing more and more segmentation of the global economy.

Of course, results in now everything needs to be produced domestically, home shoring, unshoring, reshoring, all that, of course, results for fixed income investors in more upside risk to inflation.