Rotation, Not Ruin

What this episode covers

Show from 2026-07-17 Host Jeremy Schwartz and Professor Siegel discuss softer-than-expected CPI and PPI readings, the renewed rise in oil and gasoline prices, and the possibility that higher energy costs could reverse some recent inflation progress. The Prof says the latest data reduces the likelihood of an immediate Fed hike, but warns that persistent strength in oil, gasoline and the money supply could make later policy decisions more difficult. He also reviews stronger housing starts, steady GDP expectations and the sharp rotation away from high-flying AI, semiconductor and memory stocks. Professor Siegel argues that the pullback is healthy because investors are reassessing valuations, competition, hyperscaler spending and how much customers will continue paying for computing power. (14:02) Jeremy continues with Sam Rines, Jeff Weniger and Chris Gannatti to examine crack spreads, diesel prices and the economic effects of elevated refining costs. The group discusses volatility in Korean technology shares, widespread margin calls, leveraged retail accounts and the rebalancing pressures facing major pension funds in Korea and Japan. They also review strong bank earnings, resilient consumer spending, improving credit trends and the broadening of earnings growth beyond technology. The conversation closes with hyperscaler capital spending, U.S.-China AI competition, IBM’s sharp decline, a possible rotation from hardware into software, credit-card rewards, gold prices and housing affordability. WisdomTree: https://www.wisdomtree.com/investments

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