Transcription
So, what do you do overall? It's more complicated, but you wouldn't necessarily short this market at this point, would you?
>> I would not. I I've lightened up. I've taken, you know, I'll give you an example. I I sold my Google a couple of months ago. Um, I've owned Google. I can't even tell you how long I've owned Google. Um, but I felt I I wanted to reduce my exposure to AI. I haven't bought anything to replace it because, you know, buying something [clears throat] defensive or staply is kind of a waste of time.
>> Why?
>> It doesn't go up. They don't go up. They, you know, people either want to buy AI or they don't want to buy AI, but they don't want to shift out of it to buy Clorox.
>> So, if this is a binary situation where AI succeeds and the market continues to push higher and higher,
>> correct? What happens if AI doesn't succeed?
>> I think we have a big correction.
>> How big?
>> Now, now that's a hard question. I don't know. But I mean, it's all one trade. It's just literally one. I mean, even people who who think they're diversified because they own 60% stocks and 40% bonds are missing the fact that they're actually not diversified. because of their 60% more than 50% is of it is is tech and AI related and of the 40% of bonds most of the new issuance of bonds is AI related. So even people who think they're diversified because they they own bonds are not really that diversified. It's it what's what scares me is that it's all one trade. So it better succeed.
>> What are you doing if you've sold Google? What else? I mean, if you sold Alphabet, what else have you done?
>> I'm just sitting in, you know, I have cash
>> until I can try and figure out what to do.
>> What would it take to get you to deploy that cash?
>> I don't know yet. I really don't. I mean, I don't think this debate's going to get settled within the next two weeks.
>> We talk all the time about the Middle East because you can say AI is driving everything, but you could also say oil prices are driving everything right now, too. Um, oil prices are down 8%. You see the markets up
>> right
>> significantly. How much does that factor into it? To tariffs factor into it?
>> I think it factors it to to a degree. I don't think this war is going to be over anytime soon. I I don't think I mean I think President Trump wants the Iranians to give up their their nuclear uh fuel and the Iranians are not going to give up their nuclear fuel. So I don't think there's much to talk about. So you know we get these lols but then it doesn't do anything. But you're not worried about oil prices at this point.
>> I think actually there's an over supply. You know, that's why the um Hale Lima, who was a guest on my show, too. Um, you know, pointed out that China has basically stopped buying oil, which is why oil prices haven't gone up that much. You know, you would have thought oil prices would be 150 at this point, but they're not because there's actually an over over production. And I also think some of these um these pipelines that are going to be able to avoid um the straight are pretty close to being finished.
>> Yeah. Next year, I think maybe 2027. Yep.
>> Is when you hear from
>> That's why all I'm not really all that worried about all prices.
>> I mean, AI is going to be something. I don't I'm like you. I'm not sure what. Does the for lack of a better term the bubble popping does it does it come from people slowing down on the buildout or does it come with the promise of what it's supposed to do disappointing people
>> I don't necessarily think the latter
>> it's going to be amazing
>> it's going to be
>> it's going to be something something really good um that doesn't mean that everybody succeeds
>> yeah That doesn't mean that
>> circular deals the latest Nvidia deal like you got to read it and it's like
>> they're going to you know back this but then they're going to provide money for opening eye to buy their chips and it's so uh incestously it's convoluted.
>> It's totally convoluted. You don't know if there's any,
>> you know, you don't know if there's any real profitability in in any of of the machinations that you find [clears throat] eventually.
>> There probably is for Nvidia. he was saying probably
>> well yes for Nvidia they're not doing it for free but look I again I think one of the bottlenecks is that enthropic and AI and open AI are responsible for a lot of the spending that people are doing
>> right
>> and anthropic and AI have models that are now much more expensive than the competition and I think that is a potential bottleneck
>> I'm a much better cook because of AI and and and
>> you are
>> yes
>> and griller
>> okay
>> when grill things on much I mean far better. Everything is juicier, tastes better. I do it a totally different way. I'm using the grill that has different zones.
>> And you don't pay anybody for any of that?
>> No, I use just I don't I don't free, right?
>> But he's very very nice to me in
>> Did you feed him into submission?
>> Maybe. So no, Claude is like, "So how was your you know, how was your boneless breast of chicken?" It was unbelievable, Claude. Thanks. Cuz any anytime I kind of like that stuff,
>> very friendly.
>> Steve, you we've got a Fed meeting this week, too. Um, you basically think that's just noise.
>> Completely irrelevant.
>> I mean, look, if inflation gets worse, they'll raise rates and inflation gets better, they'll cut rates. And and so I I don't understand why people get so exercised about it.
>> Doesn't make much difference to you one way or the other.
>> Not really.
>> Yeah. I mean, look, if the Fed starts to raise rates very aggressively, that would be important, but I don't see that. So, uh, you know, it's it's good to talk about on television, but it doesn't really interest me that