00:00Boy, where to start, Mark? I mean, let's start with the sell-off in tech, shall we?
00:03Sell-off in tech, sell-off in software specifically, but also some of the big tech names are moving to value,
00:08winding back some momentum trades. What was your take on what we've seen over the last few days?
00:16Yeah, the price action's really been quite remarkable. I think there are a few kind of tangents to get about this.
00:21First of all, the price action so far has seemed very much like a rotation in stocks.
00:27There's been some really dramatic moves globally, but overall, most risk assets, and there are some notable exceptions,
00:34have traded relatively OK. I wonder whether that starts morphing into a bit more broader risk aversion.
00:40I think what we might see is the hardware AI names catch down to the software AI names rather than AI software catch back up.
00:48So I think it might turn a little bit more negative. Two concerns there.
00:51I think, you know, suddenly private markets might come back into focus. We saw a little bit of that yesterday.
00:55But that software bit is getting people more scrutiny of what's happening on the private equity side, private credit side, private debt side.
01:01So I think people are going to get a little bit more worried there.
01:03And the retail names are just getting destroyed between what's happening on precious metals, the big favorite tech names, and, of course, in crypto as well.
01:12Mark, can I connect the dots? I've got a series of big volatility events that are happening at the moment.
01:16Metals, as you say, what's happening in the energy complex, what's happening in the software space.
01:19Can I connect these events? Do they do they form a bigger picture at some point or do they remain isolated?
01:28You might be able to connect them. I'm struggling to. I'm trying to.
01:31I think that there are obviously there's always some interrelation between, you know, price action and markets.
01:40I don't think there's one overriding theme.
01:42As I said, there's the kind of what's happening in the software space, which is really about, you know, the evolution of the AI trade.
01:49At the same time, there's the kind of the retail sector momentum stocks that just are momentum trades that just got so kind of overextended.
01:59And that kind of led in the precious space.
02:01Now, I think both these are probably weighing into what's happening in crypto and stuff.
02:04So there's some interrelations, but I don't think there's one overriding theme.
02:08I think into next week, this might all evolve into one overriding theme of just a bit of risk aversion, not a bigger panic, but just a bit more of a correction we've seen more broadly.
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