The Meb Faber Show · Friday, September 4, 2026
AllianceBernstein's Inigo Fraser Jenkins argues for a strategic overweight in US equities, citing AI benefits and more favorable demographics compared to Europe and China. He acknowledges that US profit margins have grown significantly, but notes that further indefinite growth may be limited by social consequences, though voters have not yet pushed back.
“I think whatever you think the productivity growth of AI is going to be, it's likely that the US benefits more from that, and sees a greater productivity growth in the US than elsewhere.”
“The projection for the size of the working age population in the US is basically flat over the next 10 to 15 years. Now, let me be clear, that is much lower level of growth than we've been used to for the last 40 years, so it's not great in absolute terms, but it's better than anyone else.”
“I've given up on making that mean reversion call on profit margins or on profit GDP. I have to say.”