Julie Biel, CFA, Chief Market Strategist joined Bloomberg’s The Close to discuss why investors should stay focused on earnings despite geopolitical uncertainty, how AI is changing the competitive landscape across technology, and why a more hands-off Federal Reserve could help markets function more efficiently. Julie notes that while geopolitical developments and headlines can influence markets, earnings remain the primary driver of returns, particularly in small-cap stocks where company-specific factors tend to outweigh macro narratives.
Not Every AI Winner Will Look the Same
According to Julie, investors should avoid thinking about the largest technology companies as a single group. Competitive dynamics vary significantly across businesses, influencing how effectively AI-related spending strengthens long-term market positions. She also highlights the importance of workflow integration, arguing that companies embedding AI into existing customer processes may be better positioned than those offering standalone solutions that face greater pricing pressure and substitution risk.
A Case for Less Fed Guidance
Julie views the Fed’s more restrained communication approach as a positive development. Rather than relying heavily on policymakers for direction, she believes investors have access to much of the same economic information and should be equipped to form independent views on the path of policy. In her view, less guidance can reduce market distortions and encourage more disciplined decision-making.
