Daniel Lacalle, chief economist at Tressis, a Spanish private bank, and co-manager of the Adriza International Opportunities Fund, told MarketWatch that he favors U.S. technology assets and gold over government bonds. He said concerns about artificial intelligence are misplaced, telling MarketWatch, "I'm not afraid of artificial intelligence. I'm afraid of human stupidity — that's what worries me." His view comes as government debt markets face sustained selling pressure, with the 10-year Treasury yield near 5.234% on Tuesday and the 30-year yield at 5.549%. Those levels are the highest in roughly two decades and more than 20 years, respectively. Higher bond yields have also pushed the 30-year fixed mortgage rate to 7.45%, its highest level since 2024. Morgan Stanley economist Heather Berger said higher borrowing costs are expected to weigh on household spending, with the bank forecasting real consumption growth to slow by 40 basis points next year. Hedge funds have nonetheless been buying U.S. Treasurys at a record pace as traditional long-term investors, including pension funds, reduce their exposure. They held $2 trillion in cash Treasurys at the close of 2025, according to the U.S. Office of Financial Research, nearly three times their level five years earlier and equal to a record 7% share of marketable Treasury debt. The Federal Reserve has warned that leverage among hedge funds was near record levels, highlighting risks associated with the strategy.