Jeffrey Sherman: Throw Away the Post-GFC Playbook | Insightful Investor Podcast

DoubleLine Deputy CIO Jeffrey Sherman joins Evoke Advisors Co-CIO Alex Shahidi on The Insightful Investor podcast to lay out his framework for reading markets. He argues for discarding the post-Global Financial Crisis playbook of central bank coordination and financial repression in favor of the early 2000s, when inflation ran with a 3 or 4 handle and bond yields traded on fundamentals. He discusses Fed policy, Treasury buybacks, AI capital expenditure and portfolio positioning.

1. Sherman says to throw out the post-GFC playbook and look to the early 2000s, when inflation ran with a 3 or 4 handle and bond yields traded on fundamentals.
2. He argues the Federal Reserve cannot choke off hyperscaler spending even with large rate hikes.
3. He is skeptical of Treasury Department buyback plans, calling them a drop in the bucket against the deficit.
4. He says AI capex estimates of $900 billion to $1.5 trillion next year have to be financed, and eventually the bond market will dictate how far the AI trade goes; he compares the buildout to the telecom boom.