What Will Drive Investment Returns Over The Next 5 Years?

Rob Pizzichetta of Mont Wealth recaps the firm’s investment committee meeting and argues that power demand from the AI build-out is becoming a dominant market force. After a discussion with PIMCO’s Lily Feng, he notes core inflation around 2.5% trending lower, cooling consumption and wages, and expectations for only 1–2 rate cuts, while Australia’s CPI ran hot and markets price possible further RBA tightening; near-term rates are murky but “higher for longer” remains. Earnings are supporting equities despite near two-decade-high global yields: Australia’s season was fine but unspectacular, while S&P 500 profits rose about 33%. Citing Matt King, he links resilience to hyperscalers funding massive AI capex—now shifting from cash to debt—adding to deficits and pushing yields higher with a negative US equity risk premium. He details Goldman’s forecasts for surging data-center electricity demand and constraints (“seven Ps”), regional grid impacts, and supply responses, concluding AI is now about infrastructure, utilities, and debt, supporting interest in real assets like infrastructure and global property.

00:00 AI Power Demand Shock

00:42 Committee Update and Macro View

01:55 Equities and Portfolio Positioning

02:58 Why Yields Haven't Broken Stocks

04:11 AI Boom Financing Hits Debt Markets

05:47 Japan-Sized Electricity Surge

07:35 The Seven Ps Blocking Supply

08:41 Regional Grids and Energy Mix

09:31 Portfolio Implications and Wrap

10:40 Closing and Next Steps