AI is reshaping the economy faster than anyone expected – and investors are trying to catch up.

In this episode of the MoneyShow MoneyMasters Podcast, Dr. Ed Yardeni, President of Yardeni Research, and José Torres, Senior Economist at Interactive Brokers, join host Mike Larson to break down what’s really driving the 2025 market. From the AI-led capex surge and slowing payroll growth to rising productivity and stretched valuations, they unpack how technology, labor, and policy are shaping the next leg of the cycle.

Yardeni explains why he still believes we’re living through the “Roaring 2020s,” while Torres highlights how earnings strength, immigration policy, and a more flexible Fed could keep the economy expanding, even with inflation hovering near 3%. Together, they reveal why they both remain relatively bullish – and what investors should watch as 2026 comes into view.

CHAPTERS:

00:00 – Market Setup and AI-Driven Pullback

01:52 – Data Centers, CapEx, and Digital Evolution

03:48 – AI’s Impact on Productivity and Profits

05:18 – Labor, Immigration, and Slowing Payrolls

07:14 – Valuations, Earnings Growth, and Fed Cuts

09:36 – Inflation Trends and Service-Sector Pressure

11:33 – Private Credit and Hidden Risk Debate

14:55 – Sector Outlook: Financials, Energy, Small Caps

18:40 – The “Roaring 2020s” and Structural Tailwinds

21:52 – Sarasota Preview and Final Takeaways

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