Dr. JoAnne Feeney, Partner and Portfolio Manager at Advisors Capital Management, joined Bloomberg to discuss the forces shaping technology stocks, credit markets, and interest rates. She examined the strong earnings foundations supporting many AI-related companies, the market’s response to increased borrowing and infrastructure spending, and the challenges facing the Federal Reserve as investors weigh persistent inflation risks.
During the conversation, Dr. Feeney highlighted how companies that integrate AI into established products and services may be particularly well positioned. She also discussed why widening credit spreads may reflect a more realistic assessment of risk rather than a rejection of the broader AI investment thesis.
On monetary policy, Dr. Feeney noted that the bond market appears to be responding to continued inflation risk by pushing longer-term rates higher. These market-driven borrowing costs could constrain credit and economic activity, regardless of changes to the Federal Reserve’s short-term policy rate.
Recorded: July 30, 2026
Key Takeaways
AI investment continues to have strong fundamental support: Dr. JoAnne Feeney explains that many leading technology companies are generating meaningful earnings and cash flow from AI, even as investors reassess their exposure following the sector’s significant gains.
Vertical integration may help distinguish AI leaders: Companies such as Microsoft, Google, and Amazon may be better positioned because they combine computing infrastructure, proprietary technology, established business platforms, and real-world AI applications.
Bond markets are signaling continued inflation concerns: Rising long-term interest rates and a steeper yield curve suggest that investors remain focused on inflation risk, potentially tightening financial conditions even while the Federal Reserve holds short-term rates steady.
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