The market is not set up to handle any Iran war curveballs, says fund manager

• Neuhauser believes the market is overly sanguine about a U.S.-Iran ceasefire extension, expecting a 'true deal' for 60 days, but warns of potential escalations and a 'curveball' that the market is not prepared for.
• He is wary of the AI growth narrative, citing massive capital chasing it and questioning the return on investment over the next several years, despite the severe demand for chips and servers.
• He observes a 'wealth effect' where high-income earners and investors are thriving, while those at the bottom struggle, contributing to a 'stagflationary feel' reminiscent of the 1990s.

David Neuhauser, CIO of Livermore Partners, expresses caution regarding the market's optimistic view on a U.S.-Iran ceasefire extension, warning of potential 'curveballs' and a lot that could still go wrong. He also highlights his wariness about the AI growth narrative, questioning the long-term return on investment given the massive capital chasing it, and notes a growing 'stagflationary feel' in the broader economy.