You Think You're Diversified, AI Disagrees — ft. Torsten Slok

Key Takeaways

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  AI-driven inflation risks stem from the massive capital expenditures required for data centers and energy infrastructure, potentially offsetting the technology's productivity gains.

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  Wealth inequality dynamics have created a dual-track economy where the top 10% of households remain insulated from high interest rates, sustaining aggregate consumer spending.

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  Geopolitical tail risks involving Iran pose a direct threat to energy prices and supply chains, potentially undermining traditional portfolio diversification strategies.

Episode Description

Ed Elson and Scott Galloway are joined by Torsten Slok to break down what he makes of the conflict with Iran and how it could impact the global economy. He also explains how AI could shape inflation, discusses the role wealth inequality is playing in the U.S. economy, and shares the risks he sees as most pressing for markets right now. Torsten Slok is Partner and Chief Economist at Apollo. Previously, Torsten worked for 15 years on the sell-side, where his team was top-ranked by Institutional Investor in fixed income and equities for ten years. He also worked at the OECD in Paris in the Money and Finance Division, and the Structural Policy Analysis Division. Before joining the OECD, Torsten was with the IMF in the division responsible for writing the World Economic Outlook. Check out our latest Prof G Markets newsletter Follow Prof G Markets on Instagram Follow Ed on Instagram, X and Substack Follow Scott on Instagram Send us your questions or comments by emailing Markets@profgmedia.com Learn more about your ad choices. Visit podcastchoices.com/adchoices