00:00Mark Haefeli of UBS raising his year end price target to 7900 writing continued economic growth and AI adoption should
00:07drive further U.S.
00:08earnings increases supporting additional market gains over the medium term. Mark joins us now for more. Welcome to the program.
00:14Maybe this is a gut
00:15check on sentiment with the following question. Are you bullish enough. That's a good one. Thank you. You know I
00:25think that we're bullish on
00:28the S&P but we're probably even more bullish on this rally broadening out from kind of the top names
00:36and extending globally from here. So you know for those
00:40people who haven't been in on the rally and are afraid to get in. We think there is a lot
00:45of opportunity globally now. How much is this coming from
00:49the AI sectors that have already gotten bid up. And how much is this coming from the broadening out that
00:53ostensibly will come with some sort of
00:55resolution in the Middle East. Well I don't think you can discount the AI impact in a broader sense which
01:06is that you know the CapEx
01:07spend from AI is probably having two times the impact of the negative effects of the rise in oil prices
01:17on global GDP. So that's factoring
01:21into this as well. Now of course our economist Paul Donovan talks about the Wile E. Coyote effect where you
01:30know behavioral
01:31economics at some point if oil prices continue to be elevated or they continue to surge of you know over
01:39a hundred
01:41behavioral economics can take over and things can start to break and we can see this unravel.
01:47But I like that AI to oil statistic a little bit because it gives people a sense of you know
01:55there are
01:55other factors besides what's going on in the oil story.
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