Global equity portfolio manager, Paul Moroz, speaks to a wide range of market topics, including what higher discount rates mean for equity valuations and the subtle shifts you might not see in the headlines but that absolutely matter. 
Stay tuned for the second half, where Paul discusses Millennium Prize math problems, humility, podcast proliferation, and entropy—for those seeking useful mental models for portfolio construction, the payoff is worthwhile.

Key Takeaways: 

• Bond yields are the foundation of discount rates across all asset classes. The 10-year U.S. Treasury is above 5% and the Canadian 10-year is near 4%, with oil prices, AI CapEx borrowing, and government debt all contributing.
• Equity markets have held up better than the discount rate math would predict. A 1% rise in the discount rate implies roughly a 15% decline, yet NVIDIA trades at 13 times next year's earnings, which points to multiples compressing while earnings grew.
• The portfolio changes have been subtle rather than dramatic.
• How humility is built into the investment process.
• Entropy is a useful lens for investors. Left alone, a lawn fills with weeds and a podcast market fills with content, so most of what an investor sees each day is noise, and the job is putting energy into the part that matters.