00:00I want to start here, just big picture. So for me, I can't keep up. I felt as though
00:04MAG7 was the way to go. People would say that you were crazy to not have that within your
00:08portfolio. But coming into 2026, we're seeing a lot of skeptics coming out, saying that they
00:13are really concerned about CapEx. And we're clearly seeing that reflected in the trade.
00:17To be fair, MAG7 stocks are down just about 7% so far this year. But I'm curious, what are
00:22you
00:22seeing from this market? Is this a short-lived trade or something that we should expect long
00:28term? It's a hard question to answer. I mean, I think it's probably more than short-lived.
00:34I think inevitably, over the next 12 months and probably even in 2027, we're going to see a number
00:39of cycles and knee-jerk reactions. I think we've clearly been through technology cycles before.
00:46But I think this one is unprecedented in its complexity and the speed with which it's evolving.
00:53I think that makes it really hard for both professional and consumer investors to make
01:01clear and high conviction judgments about what the right investment strategies are. We saw
01:07a big surge of investment in a lot of technology companies last year. We're seeing a pullback
01:13at the moment, particularly around the kind of application software. And we heard kind of
01:17around the Charles Swap commentary there that kind of really seeing this kind of big, big pullback
01:22and people taking a very negative view on how this is going to play out for the kind of
01:26incumbent businesses. You know, I think if you kind of look at the most optimistic end of the scale,
01:34you know, like that Elon Musk's talking about creating 100 gigawatt data centers in space that
01:40we're not even on the inflection point yet of the growth we're going to see in AI compute and
01:45actually looking back, this technology investment we're seeing from mag seven is going to fully make
01:51sense. But I think there's still a lot of question marks out on it. Really, the return on that
01:55investment really is contingent on AI really properly taking off from here in terms of enterprise
02:03deployment and application. So yeah, still a few swings and cycles to go through, I think.
02:09At the same time, Matt, when you see these big sell offs in whole industries, right? When a new tool
02:15comes out, you would look at the traditional tech firms that are spending and say, well, maybe they're
02:19right because management and traditional industries are clearly not putting across the case that AI is
02:25improving their businesses and that you don't need a particular tool to, you know, a particular tool
02:32won't do what they can do for you. Yeah. Yeah. Again, you know, listening to Charles Schwab there, it's
02:40completely true that, you know, as an established firm, they're already using this technology and there's
02:45opportunity for them to continue to use it. But at the same time, there are, you know, upstarts coming through
02:50that
02:51are going to leverage AI technologies being developed incredibly quickly. And that's going to appeal to some
02:57people, you know, that, you know, the examples we heard there, you know, quite complex financial planning
03:03examples. There's a long tail of people that, you know, don't want to pay for advice and think that
03:09maybe using an AI tool and perhaps, you know, with online communities, they can disintermediate that and,
03:14you know, kind of get close to an optimal tax or investment strategy just by using AI tools. So I
03:21think there is
03:23disintermediation and market share risk. And I think, you know, for the incumbents, whether it's in
03:27financial planning, legal advice, tax advice, the established market players need to move incredibly
03:35quickly to integrate this new technology into their offerings and make that incredibly clear both to
03:42their current and potential customers and to the investment community that that's what they're doing
03:48and show kind of real evidence about how that's evolving their business at the right pace.
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