00:00What are you nervous about in markets when you look across the price action and markets?
00:04Are you nervous about things? I think there are there's reason we could see limited tactical
00:09upside from here. I think that's largely reflective of this yield environment, how
00:13sustainable are yields at these levels where that start to spill into risk assets. Looking at oil
00:18prices, oil price dynamics have certainly driven risk sentiment more recently. But taking a step
00:24back, this is a market that does look for catalysts to re-risk. We think about the earnings backdrop
00:29remains exceptionally strong. We're seeing nominal GDP growth above 8 percent. And I think all of
00:35these factors suggest that I think markets are just waiting for those kind of clear clearing
00:40events around event risks, whether that's around geopolitical risk, whether that's around the
00:44midterms. I think there's just these kind of key barriers to that re-risking. Yesterday, we saw
00:48investors enthusiastic about chip stocks, but worried about a new pocket of vulnerability around AI. And
00:55this was so-called inertia stocks. So companies that you maybe have contracts with and you don't
00:59renew them very often because you just don't have the time. But maybe if you had an AI agent, you
01:03might do that. You might be tempted to find lower prices. And are you thinking that maybe there is a,
01:08just like we saw Saspocalypse at the beginning of the year, is there an area of negativity around
01:13consumer facing businesses that we need to think about from here? Well, I think the way that we look
01:17at AI is really around three key questions. So one, is the demand real? Second, who's going to be kind
01:23of the near term beneficiaries of that? And who ultimately will benefit from all of this AI spend? And I
01:28think
01:28that's what makes the chip stock rally so interesting in the sense that to your question
01:33around personal agentic AI has really been the catalyst for the latest leg higher in chip stocks,
01:39because we're seeing just this robust consumer demand that's really adding to that one question
01:44around demand. But we're seeing this rapid adoption. So that suggests more inference, more compute,
01:50and more semiconductors at the end of the day. At a time when the market is already exceptionally tight,
01:55we think about how much chips go into data centers. And I think that's really going to continue to
02:00provide this pillar of support. We're going to see these jitters, but I think ultimately we still
02:04have strong conviction in that area. You don't want to dwell on the losers, though, Laura. You don't
02:08want to dwell on the sectors that might lose out then, I suppose. There, of course, will be winners
02:12and losers in this AI dynamic. But I think it's all about, you know, looking much more at the
02:17company-specific dynamics. Who's going to have the revenue acceleration? Who's going to derive
02:22these returns from some of this spend? That's where we're really focusing on and trying to discern
02:27who could ultimately, you know, not have the returns come through.
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