00:00It very much feels like the market is just taking a look around at any possible sector that could be
00:04disrupted by AI, selling first, asking questions later.
00:07It's wild. I think that's the perfect context to talk about them.
00:10It's like a wrecking ball every day is pointed at a new sector.
00:13And some commonalities between them all, it's that, you know, sort of high cost intermediary business, you know, in the
00:21case of CBRE, you know, part of their business, a big part of their business, obviously, is managing the properties.
00:26But then you have a lot of, you know, valuation businesses, consulting businesses, arranging these big, complicated leases.
00:34And that's kind of one area where I think the risk is and analysts are pointing at is that intermediary
00:40work they do.
00:41The other thing, and their CEO got into this on the conference call a little bit today, is quite much
00:47more simple.
00:47It's just the fact that if AI is going to displace a lot of white collar jobs, people are just
00:54going to need less real estate to house them.
00:57And that's a big risk for them.
00:58So kind of a two-pronged risk from this AI trade for them.
01:01So in this instance, there wasn't necessarily some AI model or large language model that did something that replicates what
01:08these real estate services companies do specifically.
01:11It's just the possibility that it will one day.
01:13Yeah, I think people are, you know, we're sort of transitioning from this theoretical phase of AI, what it's potentially
01:20capable of doing to real-world applications coming out.
01:23And I think if you look at those Anthropic plug-ins that came out last week that really, you know,
01:28first it started in the legal services.
01:31You know, the writing's kind of on the wall there that that type of business, that really sort of labor
01:37-intensive intermediary business is really ripe for disruption on this.
01:41You know, that said, you know, a lot of analysts we've talked to and the team I work with has
01:47talked to, a lot of investors we've talked to are like, this doesn't make a lot of sense.
01:51This is a big overreaction to a lot of this stuff.
01:55You know, the quote I keep seeing over and over again coming into my inbox is, you know, sell now
02:00and think about it later.
02:01You know, and so I do think, you know, people are expecting some, at least, you know, these stocks to
02:08find a bottom and maybe rebound.
02:10But that threat of disruption is there and it's going from sector to sector for real.
02:15So Matt Levine, who writes the Money Stuff column, says that if the market now is both optimistic about AI
02:20and jumpy about its disruptive effects on other industries, you can monetize that jumpiness.
02:24There's got to be someone making money on the waves of paranoia that are sweeping through each part of our
02:30services industry.
02:31I guess, how do we even go about looking at who that might be?
02:35Do you look at options to figure out where that is?
02:37Yeah, I mean, I think in this case, a lot of this caught a lot of investors off guard.
02:42You know, there wasn't quite a big positioning set up.
02:46You know, I could be missing some things.
02:47But, you know, I think this came out of the blue for a lot of people.
02:50You look at the wealth management stocks, there's hardly any sell ratings on any of them, so.
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