Nov 2, 2026 · 30 min
Advisors weigh AI exposure against portfolio resilience
Talk Your Book: Diversifying the AI Trade
AI uncertainty is forcing advisors to reassess diversification, income, liquidity, and the overlap between public and private-market holdings.
- 1AI-driven capital spending is reshaping investment questions across equities, credit, fixed income, and private markets.
- 2Bond-market trauma still influences investor behavior, while municipal bonds offer potentially attractive tax-equivalent income.
- 3Private-credit liquidity constraints make portfolio sizing and liquid fixed-income reserves central to risk management.
Don't miss
Brian Griggs explains why private-market illiquidity can dampen behavioral volatility while still demanding careful sizing and a liquid fixed-income reserve.
The brief
Brian Griggs of Nuveen joins Michael Batnick and Ben Carlson to examine how advisors can build portfolios when AI’s market effects remain difficult to forecast.
The AI investment cycle reaches beyond technology stocks: capital spending, business fundamentals, credit spreads, fixed income, and private markets are all being pulled into the debate.
Griggs says bond-market trauma still shapes investor behavior, even as municipal bonds attract attention for tax-equivalent yields and advisors weigh rebalancing against momentum.
A portfolio can look diversified while public and private holdings overlap; Nuveen’s Insights platform uses technology and risk modeling to examine those exposures together.
Private credit’s illiquidity may reduce visible volatility, but redemption limits and normalized non-accrual rates make liquid fixed-income reserves essential.
What was said on this episode
18 statements · 12 positive · 4 negative · 2 neutral
Nuveen manages $2.6 trillion in assets.
“Nuveen is a $2.6 trillion firm.”
Listen at 2:28
- Brian Griggson AI buildout earnings growthPositive7:39
Investors should not currently reduce exposure to AI-linked earnings growth.
“I don't think now is the time to fade that.”
Listen at 7:39
- Brian Griggson AI capital spendingNegative8:21
AI-related capital spending may eventually slow.
“At some point, I don't think it's outrageous to expect to slow down in capex spending.”
Listen at 8:21
- Brian Griggson AI capital spendingNeutral8:34
AI capital-spending slowdown has not arrived yet.
“I don't think we're quite there yet”
Listen at 8:34
- Brian Griggson Credit spreadsNeutral10:33
Credit spreads may remain tight for an extended period.
“Credit spreads can stay tight for quite some time.”
Listen at 10:33
Investors should add bonds for diversification amid fixed-income repricing.
“take advantage of some of this fixed income repricing. Don't overthink it. Lean into bonds for diversification”
Listen at 10:52
- Brian Griggson Municipal bondsPositive11:03
Recent rate volatility created attractive municipal-bond entry points for high-tax investors.
“the municipal market has probably had more of a acute reaction to some of the rate volatility as of late, which has created a lot of great entry points for high tax investors.”
Listen at 11:03
Current bond yields adequately compensate investors for owning bonds.
“you're getting paid to own bonds once again.”
Listen at 12:41
- Brian Griggson Equity correctionNegative16:17
A prolonged equity correction is likely needed to increase fixed-income and private-market demand.
“I think we're going to need some sort of prolonged equity correction to get more demand for fixed income and perhaps also private markets to start flowing.”
Listen at 16:17
- Brian Griggson Fixed-income durationNegative17:52
Investors should avoid excessive duration and long-term rate risk.
“you probably don't want to be a duration hero within fixed income and take a lot of rate risk on and lock up your capital for a long period of time.”
Listen at 17:52
- Brian Griggson Private marketsPositive19:58
Advisor demand for private markets remains present.
“the demand for private markets is still there”
Listen at 19:58
- Brian Griggson Private-market real assetsPositive20:23
Clients increasingly seek inflation protection through real assets, infrastructure, and farmland.
“a lot of clients are looking for better inflation protection with things like real assets, infrastructure, farmland investments.”
Listen at 20:23
Nuveen Insights analyzes underlying private-portfolio holdings and overlapping risk exposures.
“It actually diagnoses the underlying holdings of a real estate portfolio or a private credit portfolio to show you what are the overlap. lapping risk factor exposures?”
Listen at 21:45
- Brian Griggson Municipal bondsPositive23:02
Advisor discussions about municipal bonds have increased substantially this year.
“we've seen a huge pickup this year in conversations around muni bonds.”
Listen at 23:02
- Brian Griggson Private-credit non-accrualsNegative24:48
Private-credit non-accrual rates have risen toward normal levels.
“non-accruals have normalized somewhat off of extremely low levels.”
Listen at 24:48
- Brian Griggson Middle-market private-credit dealsPositive26:57
Middle-market, private-equity-backed private-credit deals remain fundamentally strong.
“the true middle market private equity-backed deals are still in pretty strong fundamental shape.”
Listen at 26:57
- Brian Griggson Private marketsPositive28:20
Private markets can provide inflation-resilient exposure with less visible volatility.
“in the private markets you can get exposure to assets that have some inflation resiliency without the line item volatility”
Listen at 28:20
- Brian Griggson Private assetsPositive29:22
Appropriately sized private assets can materially improve long-term after-tax, inflation-adjusted returns.
“they can add a huge component to compound annual return after inflation and taxes over the long term.”
Listen at 29:22
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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