00:00I think the broadening is intact and has been intact this year.
00:04When you're looking at AI-related stocks, the action really hasn't been in the U.S.
00:10It's been out of the U.S. It's been in Asia.
00:13Within the U.S. market, small caps have been outperforming mega caps.
00:19So you've been getting broadening to that extent.
00:21And if you look at performance this year, banks have been doing reasonably well,
00:26especially in the last month or so.
00:30Telecom stocks continue to do very well,
00:32which is a sector that just kind of sneaks through without being noticed.
00:37So I think there is a reasonable amount of broadening already happening.
00:41And as I was suggesting, even within the AI theme, you are getting rotation.
00:47Mega cap hyperscalers to the Asian suppliers.
00:53And like I say, possibly going to the component manufacturers.
00:56We saw Citi upgrading their call on Chinese stocks to overweight.
01:00And I'm thinking about the conversation I had earlier on in this program about Chinese competition on the AI front.
01:07You've talked about the boom in Asia tech.
01:10Of course, that's been in support of the U.S. tech boom,
01:13even if they've been fighting over the profits maybe in different parts of the supply chain.
01:16But they're all in the same supply chain, whereas the China story is a little bit different.
01:20How does that complicate the AI narrative, do you think?
01:23First of all, I like the Chinese market.
01:26I think it's still one of the few markets out there, the big markets, that is good value, that is
01:31cheap.
01:33The cyclically adjusted PE is still well below historical norms and a long way below what you see in the
01:40U.S.
01:41and even Europe.
01:43Secondly, there's lots of interesting technology stuff going on in China.
01:47Just the way that they use technology on a day-to-day basis is really impressive when you visit.
01:52But they've got all sorts of robotics.
01:55China really leads the way in robotics.
01:58It obviously led the way.
02:00It's dominating the global solar panel industry.
02:04It is now dominating the global EV industry.
02:07I think bit by bit China is moving up that value-added chain.
02:11And so I think that tech in China is still going to be an interesting story.
02:17So, yes, I have been overweight Chinese stocks for some years and remain overweight.
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