Gundlach turns bullish on stocks without giving up his December hike call

Bullish Without A Friendly Fed Monday’s warning about AI’s maintenance bill now has a direct counterpoint: Jeffrey Gundlach’s new call favors US equities and expects beaten-down AI shares to catch up. That optimism does not depend on cheaper money—he also thinks the Fed must hike in December unless oil prices break lower. AP reported that the Fed held rates steady and the S&P 500 gained 0.3%, although the SPY exchange-traded fund finished flat over the week. In the latest podcast coverage, Danielle DiMartino Booth sees a different risk: squeezed margins and job cuts could rapidly turn the debate toward aggressive easing. What has changed since Monday is the explicit bullish case despite financing pressure; whether energy inflation or weakening businesses determine the next Fed move remains unresolved.

Earlier coverage: 2026-10-26: AI’s next bill is maintenance, not just construction · 2026-10-27: A 7% yield warning comes with a six-month Treasury bull case

Chip Revenue Isn't Cash Flow Alphabet (GOOG) has an emerging chip-revenue story, but that is not yet an answer to spending anxiety: AP’s latest report describes disappointing quarterly results weighing on AI-related shares. The stock had already fallen 3% over the week through Wednesday’s regular-session close, before the after-hours reaction. Ahead of earnings, Joe Terranova argued that bearish expectations about elevated spending were already embedded in Alphabet’s price. After the release, Ken Shreve still saw a meaningful revenue stream from its AI chips, but said investors were concentrating on spending and cash flow instead. The tension is between demonstrating demand for AI products and demonstrating that shareholders benefit after paying for the buildout.

Gold Doesn't Need Dollar Abandonment Central banks can support gold without abandoning the dollar, Axel Merk argues, adding a reserve-diversification mechanism to the long-horizon case we covered on Monday. That support has not produced a near-term rally: 86% of experts with a gold call are bullish, but the GLD gold fund fell 1% over the week. Merk explicitly describes a gradual adjustment, making his argument a case for structural demand rather than a timetable for recovery.

Earlier coverage: 2026-10-26: AI’s next bill is maintenance, not just construction

Ouster's First Call Is A Pass Ouster (OUST) enters PodLume’s call history with a refusal to invest, not an endorsement of its 11% weekly rally. Hamid Moghadam says he cannot independently judge whether its lidar technology is superior and questions whether self-driving systems necessarily need it. His objection is the difficulty of evaluating the business—not a specific price target or a claim that its technology has failed.

Distillation Isn't The Answer Key Chinese AI developers are doing more than copying their way toward the frontier, Emad Mostaque argues. Distillation provides a roadmap rather than source code or an answer key; he credits independent innovation with bringing Chinese models within a few weeks of frontier systems. That challenges the durability of a closed-model lead, without establishing which commercial applications the next capability gains will unlock.