Tressis Economist Lacalle Favors U.S. Tech, Gold Over Government Bonds

Daniel Lacalle, chief economist at Spanish private bank Tressis and co-manager of its Adriza International Opportunities Fund, told MarketWatch he favors U.S. technology assets and gold over government bonds, dismissing concerns about artificial intelligence. "I'm not afraid of artificial intelligence. I'm afraid of human stupidity — that's what worries me," he said. His preference comes as government debt markets face sustained selling pressure. The 10-year Treasury yield has climbed to levels not seen in roughly two decades, and the 30-year yield has reached its highest point in more than 20 years. As of Tuesday, the 10-year stood near 5.234% and the 30-year at 5.549%. The 30-year fixed mortgage rate has risen to 7.45%, a level not seen since 2024. Morgan Stanley economist Heather Berger said higher borrowing costs are expected to squeeze household spending, with real consumption growth forecast to slow by 40 basis points next year. Hedge funds held $2 trillion in cash Treasurys at the close of 2025, nearly triple their level five years earlier, per the U.S. Office of Financial Research.