CNBC Television
Still very early in the AI supercycle, says Dynasty Financial's Shirl Penney
11/5/2025, 8:50:14 PM
Economic Summary
- Advisors emphasize long-term, client-tailored diversification and income solutions, particularly for retirees, highlighting the advisor role in managing expectations and risk.
- Dynasty expresses strong equity bullishness, citing an early AI supercycle and continued capex from big tech and large financial firms such as SCHW and JPM, which should support related equities.
- The traditional 60-40 allocation is being replaced by alternatives (private equity, private credit, venture), precious metals, and Bitcoin, reflecting a structural shift in portfolio construction.
- A notable decline in public companies (from ~8,500 to under 4,000) increases demand for private securities, prompting advisors to expand access to private markets and use tactical overlays like tax-loss harvesting and long-short strategies.
Bullish
- Early-stage AI supercycle driving sustained capex and equity upside.
- Advisors shifting into alternatives and private markets for diversification and return potential.
- Large financial firms increasing tech capex, supporting related equity demand.
Bearish
- Market concentration in a few mega-cap names increases systemic risk and performance fragility.
- Complacency among investors could lead to poor risk management and sudden drawdowns.
- Fewer public companies (supply decline) raises valuation pressure and concentration in available equities.
Bullish tickers
SCHWJPMDYNASTY FINANCIALBTC
SCHW
Bullish
Schwab is investing in technology and capex, supporting advisor platforms and participating in broader AI-related infrastructure spend.
JPM
Bullish
J.P. Morgan cited as a large financial firm undertaking capex, contributing to demand for tech and infrastructure investments.
DYNASTY FINANCIAL
Bullish
Dynasty is actively bullish and heavily allocated to equities while expanding advisor access to private markets and alternatives for diversification.
BTC
Bullish
Included as part of alternative allocations and considered by advisors for diversification.
Bearish
Bitcoin remains volatile and not a traditional income-producing asset.
People mentioned
John BeattyCheryl PennyMikeScottOmar Aguilar