How Rate-Sensitivity Matters to AI Megatrend Investors

Well, I just wanted to talk about the rate sensitivity of these two portfolios just a little bit because if you believe what the market is saying right now, they're looking for about two rate cuts in 2026. I'm not sure personally they're going to get there with GDP running at about 4% annualized over the last quarter or two. I'm just not sure the Fed's going to have that much room.

So, in an interest rate sensitive portfolio that has a lot of REITs in it, you think that might get a tailwind if rates are heading lower. You kind of see that in the overall volatility of the portfolio. DTCR is just a little more volatile than GRID.

I think my winner in this category is just narrowly going to be GRID because it's got a little bit less interest rate sensitivity, but you're going to get a little more of the cyclically sensitive side of things. So, it's going to be dependent on growth in the sector and spending in the sector.

But again, it kind of depends on where you feel rates are going. If you feel rates are going a lot lower, then DTCR and its heavy REIT exposure might be the better play. I'm just not sure it's going to get there right now. So, I'm going to give the narrow win to GRID on interest rate sensitivity.