There are a lot of reasons we should be seeing more volatility than we have: UBS' Alli McCartney

Market Sentiment and Volatility - Recent sentiment towards AI has diminished, with market volatility expected to increase due to current valuations and lack of data [2][3] - The market is experiencing a digestion period, with low trading volumes attributed to timing and holidays, leading to a cautious approach from investors [5] Investment Strategies - A barbell strategy is being employed, balancing traditional fixed income with equities and commodities like gold and palladium, reflecting a shift in portfolio management [7][8] - The focus on risk assets is currently subdued, with geopolitical tensions and unpredictable policies contributing to a cautious outlook [11] Market Dynamics and Valuations - The recent reporting season was extraordinary, but valuations remain high, creating a push and pull in market dynamics [4][5] - There is a distinction being made between a bubble and a technological super cycle, with fewer public companies available for investment compared to historical periods [15][16] Future Outlook - The current market environment is characterized by a concentration of capital in fewer transformative companies, particularly in the tech sector, which may justify high valuations [18] - The expectation of forward earnings growth remains skewed towards a select group of hyperscalers, indicating a potential for continued investment interest in these areas [17][18]