00:00You have been the one dubbing this period the Roaring 20s, and now you seem to be at least a little bit less positive than some other people.
00:08Am I getting that right?
00:09Well, yeah, I think for now the market has had one heck of a move here, and it has been the Roaring 2020s so far.
00:17I think we're seeing some profit taking.
00:19I think we're seeing some questioning of the AI situation.
00:23People have called it an AI bubble, which is great.
00:27The more that people worry about that being a bubble, the more that they slowly take some air out of it, the better.
00:33The worst case scenario would be kind of like 1999 when just about nobody saw it as a bubble and everybody was very excited about it.
00:42So having some caution actually is a positive development.
00:45Can you see the overall S&P 500 continue to mount this kind of double-digit gains that people are expecting without the participation of big tech as the main driver?
00:55Well, I think the answer is it's possible.
00:59And, you know, we've been waiting for the S&P 493.
01:04You know, you've got the Magnificent 7, and then I call them the Impressive 493.
01:09Nobody's been impressed by them because the Magnificent 7 have kind of hogged all the oxygen in the room.
01:16But I think it's time for the 493 to really show off because they're the ones that are going to benefit from the productivity gains that are available, not just from AI, but from automation, robotics, humanoids, and autonomous driving.
01:31All these technologies, they're going to be impacting the productivity of those kind of companies.
01:37And so I think that's where the earnings are going to really shine.
01:40You know, people have been saying that there's been no earnings outside of the Magnificent 7 when you look at the S&P 500.
01:47That's not true at all.
01:48The rest of the companies have actually done quite well just by comparison they have.
01:53And so, yeah, I think, you know, the Magnificent 7 are right now selling at a 27 times forward PE.
02:02The rest of the market's selling for about 19 to 20 forward PE.
02:05I think you could have a situation where the Magnificent 7 become a little less valuable and the rest of the market becomes more valuable.
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