00:00Everything is an AI trade right now. As asset allocators, just about every asset class we look at is affected
00:08by the enthusiasm for tech, particularly AI.
00:13We see that very much in U.S. stock markets. You saw that in yesterday's performance. You see that in
00:20Asian stock performance. You see that in private equity. You see that in credit.
00:26You see that within sectors and utilities, energy everywhere. We are living in an AI world right now.
00:33At the moment, Guy, when I step back and look at the AI trade, particularly just taking the example of
00:37U.S. stock markets, right, they're up double digits, but earnings are up 3x.
00:44So when you look at earnings up, I don't know, I think the number was 50-something percent this year
00:49after the second quarter.
00:51It's part of the AI enthusiasm, but it's backed by real earnings. It's not an anticipation of earnings. It's actually
01:02earnings that are coming through.
01:04And then when you compare that to sort of the 10, 15 percent increase in stock markets, valuations have actually
01:10gotten better.
01:12The stock markets are derating.
01:14You buy more stocks.
01:16You buy more stocks in that environment.
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