Transcription
They are making a lot of money. People don't see that there's revenues coming from AI. They're not looking very hard. Look a little closer. If anybody wants to have a debate, you know my phone number. Give me a call.
Good afternoon. This is James Perry at Perry Capital in Miami. It's October 1st, the first day of Q4. And funny enough, gold's at an all-time high today at the close. The S&P is at an all-time high, and so is Nvidia. Same as last quarter. And in fact, Nvidia and the NASDAQ have closed higher 6 months in a row. That should tell you what's going on out there. We're going to talk about the big picture, what's going on, what it means, why you should care, and what you should do about it going into year end and into 2026.
Bottom line is the market likes what it sees geopolitically from an AI perspective, broader economy, and the markets. We expect that to continue. The backdrop for further investor gains in the quarters ahead are very good. Don't listen too closely to all the naysayers. There is a lot of momentum in the economy. Let's get to it.
Do not listen to all the negative news that you see on television or in the papers about the economy. The bottom line is the economy is doing well and will continue to do so because it's being driven by a strong employment market and a strong housing market. If you know those two sectors, you got most of the economy. Bottom line is there's a shortage of about 7 million jobs that's being filled. We have a shortage of about 3 million homes that is being filled. In the meantime, expect all-time highs in the labor market and the housing market to continue.
Demand of the housing market is picking up. It's not because mortgage rates are down. They're really not down that much. They're still above 6%. They've moved within a 1 percentage point range all year. The bottom line is 75% of mortgages outstanding are below 4%. And about 85% of mortgages outstanding are below 5%. Furthermore, about a quarter of the homes in the United States are bought for cash. And if you look at the state of Florida, the numbers closer to 50% than 25%. So the housing market is still doing well. So is the employment market. That's what's driving the economy, personal income, consumptions, and corporate profitability.
We'll talk a little bit more about the markets, but the bottom line is expect all-time highs to continue in the fourth quarter and into 2026. Perry Capital is overweight the US equity market and we will continue to do so. We are overweight technology and we are overweight AI and we are overweight Nvidia. Those are the best places you can be. The bottom line is that AI is helping everybody but it's also helping small businesses and smaller corporations because they're cutting costs tremendously. AI is a profit enhancer, a profit margin enhancer. That's why the stock market's doing well. We expect that to continue.
I think I don't want to invest in Europe. I don't like the euro. I don't want to invest in Japan. I don't like the yen. I don't like to invest in China. I don't trust the Communist Party. And I think India and Latin America are too corrupt for me and too much can go wrong. So for my money, I'd stick with the S&P 500 and the technology sector. Again, anybody want to debate that? I'm happy to do it. But if that sounds US-centric, tough, you know, it is. I think your investment should be too. And that's where the money's flowing. It's still coming in. So yeah, stay the course. I'll be in touch with you about some little changes I'm going to make in the portfolio with respect to some disruptive technology. But, uh, it's pretty simple to me. Okay, good luck.