Guy Adami and Dan Nathan discuss an S&amp;P 500 pressing all-time highs amid sticky inflation, a 10-year yield around the mid-4% range, and low near-term volatility despite an upcoming Fed meeting and PCE data. They review mixed retail signals (strength at higher-end brands versus Walmart’s margin pressure and a strained lower-end consumer), debate the market’s resilience, and focus on AI: Nvidia’s explosive growth and concerns that soaring usage-based AI costs could challenge the “sanctity” of big-tech CapEx, alongside critiques of Meta layoffs and skepticism about SaaS firms overpromising AI. Guy then interviews Darrell Crate of Easterly, who outlines structural volatility, demographic-driven retirement needs, and hedged equity demand, argues small caps benefit from innovation, and describes Easterly Government Properties as a mission-critical government-lease REIT with an 8% dividend, no canceled leases, a $1.5B pipeline, and potential tailwinds from government efficiency initiatives and GSA changes.<br><br>—FOLLOW USYouTube: @RiskReversalMediaInstagram: @riskreversalmediaTwitter: @RiskReversalLinkedIn: RiskReversal Media

Microsoft Can't Afford Its Own AI. What Does That Tell Us? + Easterly's Darrell Crate on Structural Volatility

RiskReversal Pod

# Full Transcript

**Podcast:** RiskReversal Pod

## Participants

- **Guy Adami** (None)
- **Dan Nathan** (None)
- **Darrell Crate** (Easterly Government Properties)

## Transcript

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[SPEAKER_00] A warm welcome to the RiskReversal Podcast. I'm Guy Adami. You know Dan Nathan. Hello, Dan. How are you? Hi, Guy. I'm doing great here. Thank you. We have a lot to talk about. By the way, I hope everybody's enjoying this Memorial Day weekend. I had a great conversation with Shahin Farshi. He is the founder and managing principal of Easterly Asset Management. We talked about markets, AI, structural volatility, a little bit about the Fed, some of the things that he's seeing in terms of small caps and some opportunities.

[SPEAKER_00] So stick around for that. But before we get there, another week that was an S&P 500 that continues to push against all-time highs. A market, Dan, that seems impervious to any bit of bad news that comes out.

[SPEAKER_01] Yeah. And I guess for the time being, there doesn't seem to be a whole heck of a lot of bad news, right? If you think about it, what did we have? We had the headwinds of, you know, a war, which I think abated pretty quickly, right? There was a bit of a volatility scare. We've got to go back now six weeks or so. We saw crude oil spike of well above 100. Well, here we are. It seems like we're just kind of, you know, I don't know, flatlined there. Whatever the news might be, inflation readings obviously ran hot over the last couple of weeks.

[SPEAKER_01] And we did see yields get to almost 4.7 percent in the 10-year. Here we are, guy. We're recording this, you know, Friday after the close. We're back at 4.55, right? And a lot of folks just thought this is a level where, you know, we're four at five for a market in the 10-year. And it seems like we might be able to bounce around up and down, you know, 20 basis points from there. Maybe that's the new normal, if you will. We have a Fed meeting that's coming up. What, in a few weeks? You know, Kevin Warsh's first o...

Microsoft Can't Afford Its Own AI. What Does That Tell Us? + Easterly's Darrell Crate on Structural Volatility

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
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Microsoft Can't Afford Its Own AI. What Does That Tell Us? + Easterly's Darrell Crate on Structural Volatility

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.