00:00Priya Misra of J.P. Morgan writing, the market is trying to figure out the AI winners and the losers.
00:05Priya joins us now for more. Priya, good morning.
00:06Morning.
00:07Bond market is the clear winner this week, surely.
00:09Indeed. And that diversification aspect, that fixed income, that treasuries, that duration.
00:14You know, I think a lot of people sort of stay in the front end.
00:18The front end doesn't give you that much. It's really the five year, 10 year.
00:21So we've been saying this is the revenge of diversification.
00:24You know, it was not very popular to own duration, but we've been thinking 375 to 400 quarters,
00:29sort of that 10 year range. We went above it.
00:32Sell America, you know, just a lot of supply, the tax refunds, all of that sort of got us above that.
00:38We think that's an opportunity. You know, but ultimately, I think we're in this point where we don't know.
00:44You know, remember when sort of AI CapEx was all that the market was looking for last year?
00:48I think the market's pushing back. The market wants to see there's a bit of a show me.
00:52Show me the productive users of that AI CapEx. Show me how people are using it.
00:56I mean, we're using it to sort of reduce the no joy work as, you know, we put it.
01:01But is that going to displace us? Is that going to just disrupt us?
01:06I think that's what the market's trying to figure out. We're not going to get answers very quickly.
01:09This is such a generational transformation.
01:12We're going to live in this bumpy ride.
01:13And this is why I would say, you know, sort of watch positioning, look at fundamentals and then make sure that you own those hedges as the market starts.
01:22If the market starts to say that maybe this is overdone, that's when you're going to need those hedges.
01:27Let's move on.
01:27Let's move on.
01:28Let's move on.
01:40Let's move on.
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