Apollo chief economist Torsten Slok remains optimistic about the United States economy, even as new uncertainty surrounds U.S. tariff policy. Speaking in a Handelsblatt podcast, he said the U.S. economy is expected to pick up steam in the coming quarters, citing three key drivers. First, the recent tax cuts for businesses embedded in the federal budget are delivering a boost. Second, investment in data centers continues at a high pace, providing strong growth momentum. Third, there is a broader industrial renaissance, as politicians now intend to increase spending on defense and infrastructure.
Despite this optimism, Slok noted that market risks have risen, potentially leading to a shift in sentiment. He therefore recommends that investors trim the AI exposure in their portfolios-not only in equities but also increasingly in bonds, private credit, and venture capital. He observed that investors have concentrated heavily on AI compared to other sectors, and that major U.S. tech firms have been issuing substantial amounts of bonds in recent months.