T Rowe. Price's Sebastien Page on the 3 key trends facing the markets

• Strong conviction in AI's long-term growth, driven by end-product demand and supply chain bottlenecks, with an expected $3 trillion CapEx over three years.
• Concerned about rising inflation being underpriced by the market, citing lagged effects from food and energy costs.
• Does not expect aggressive Fed action in the short term, noting short-term rates have already adjusted, and longer-end rates are tightening financial conditions.

Sebastien Page discusses three key market trends: AI growth, market momentum, and rising inflation. He expresses strong conviction in the long-term AI theme, despite recent tech pullbacks, due to immense demand and a $3 trillion CapEx cycle. While concerned about inflation being underpriced by the market, he believes the Fed won't need aggressive rate hikes, and highlights hedging strategies like long metals, mining stocks, and short duration bonds.