00:00Really a lot to digest, but the narrative right now seems to be a continuation of that tech rotation out of those stocks
00:08and into perhaps more value, more small sectors, more cyclicals.
00:12Can this be seen as a positive sign of more broadening out of the market, or is this a fundamental problem?
00:21I think it is a sign of a broadening market.
00:25We also have to bear in mind, especially if you look at MAC7, for example,
00:28over almost three years, they were the key component of earnings growth in the S&P.
00:34They still are one of the components, but not the only one anymore this year.
00:38So it's probably not so surprising that we see other sectors.
00:41Maybe I mentioned Basie in particular, also in the U.S. context that are also coming up.
00:46And many investors also see, hey, where else can I diversify things a bit?
00:50So not an unhealthy environment in my view.
00:55Yeah, especially at a time when we saw the sell-off in software stocks,
00:58when they're actually generating solid earnings.
01:00In this side of the world, in Asia, are there any concerns around the fact that AI could cannibalize
01:08some of these companies that are in play as well?
01:11On the Asia side, actually, as long as there is demand for AI, it doesn't matter from whom
01:19or if the market shares shift or anything, like the market seems to believe to some extent
01:24in software.
01:25In the stock markets here in APEC, we don't have that kind of phenomenon or not that kind
01:31of structure and setup.
01:33And therefore, we have seen also, you mentioned Alphabet, but we have seen it before, also
01:38Microsoft, et cetera, in terms of what I look at, is cloud growth year on year.
01:44It's very, very strong.
01:45And if it disappoints to some extent, then it's only because the capacity isn't there.
01:49The demand, it's not a demand issue.
01:51So that I think also here for the Asian semiconductor space in particular, as long as that rolls,
01:57I don't see so many issues there.
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