Shutdown End Looms, But Market Issues Remain, Says Academy's Peter Tchir

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00:00Peter Chair of Academy writing, markets are rejoicing the end of the government shutdown,

00:04but none of the other issues that have been bothering the market are resolved just yet.

00:09Pete joins us now for more. Pete, good morning. Good to see you.

00:10Good morning.

00:11Let's talk about those other issues. What are they?

00:13I think you just talked about a lot of them.

00:15Is the valuation correct for AI or not, right?

00:17It feels a bit frothy.

00:19You're now seeing mega caps move 10% on the back of earnings reports,

00:23which seems like a massive move.

00:25So I think it just shows how much uncertainty there is about whether we can pay for this

00:28and more and more people, I think, are questioning two things.

00:31One, will we get the electricity up on board and running in time to let this growth come out?

00:36And where does China stand on some of their own technology, right?

00:39I think it's been assumed that we are going to win this hands down,

00:41and yet the news out of China is a little bit disturbing as you see technology advancements

00:45after technology advancements.

00:47There's been a mood shift, without a doubt.

00:48Faith has been replaced by skepticism over the last few weeks or so.

00:52Do you think we're forming a sustainable negative turn in risk tolerance?

00:55You know, this time of the year, seasonality is fairly positive, so that should help.

01:00But yeah, I think there's a chance we get a significant 5% to 10% pullback.

01:04We started having that last week.

01:05Yesterday's rally was not just, I think, on the reopening.

01:07There was a lot of news over the weekend that I think encouraged people.

01:10You know, 15-year car loans, 50-year mortgages, $2,000 dividend tariff checks coming out.

01:16So I think there is this feeling, and I'm trying to adapt whether it's true or not,

01:19that this government is just going to flood the market and the consumer with money and liquidity,

01:25and that's all that matters coming into the midterms.