Speaker 1: And we continue at two oh five in the afternoon
Speaker 1: on the John Phillips Show. Mister Randy Wegg is off today.
Speaker 1: His flight was canceled and he's stuck in Dallas. So
Speaker 1: maybe he's hanging out with Mark Cuban.
Speaker 2: I don't know.
Speaker 1: Eight hundred two two two five two two two is
Speaker 1: the telephone number one. Eight hundred two two two five
Speaker 1: two two two. It is my pleasure to welcome our
Speaker 1: next guest to the program. She is the former majority
Speaker 1: leader of the California Senate. She's also a candidate for
Speaker 1: lieutenant governor here in the state of California. You can
Speaker 1: get her online at Gloria Romero the number four ltgov
Speaker 1: dot com and you can follow her on exit.
Speaker 3: Gloria J.
Speaker 1: Romero, Senator Gloria Romero, welcome, so good to be with you.
Speaker 4: And I wish Randy a good time in Dallas.
Speaker 1: Well, if you want him to come back, tell him
Speaker 1: to buy a ticket on an airline that's not American.
Speaker 3: All right.
Speaker 1: We are are exactly one week ahead of the election.
Speaker 1: People are filling out their ballots right now as we speak.
Speaker 1: As the ballots went out in the mail to every
Speaker 1: registered voter in the state, of California. I think the
Speaker 1: voting centers have opened up as well, and of course
Speaker 1: people can vote on election day as people are making
Speaker 1: up their minds right now, make the case why should
Speaker 1: people vote for you for a lieutenant governor?
Speaker 5: Well, I think the voters are ready for change, and
Speaker 5: we see this on the right track, wrong track, pulling
Speaker 5: consistently whether you're a Republican, a Democrat, independent, we are
Speaker 5: finding that Californians are sick and tired of being sick
Speaker 5: and tired.
Speaker 4: We want change.
Speaker 5: Essentially, it's a referendum on one party monopoly rule and
Speaker 5: Gavin Newsom. I mean, we find number one in homelessness,
Speaker 5: number one in taxes, number one in crime, and yet
Speaker 5: at the bottom of the barrel when it comes to
Speaker 5: literacy and school achievement. You know, on top of it,
Speaker 5: listening to your previous segment, that about the whole covering up,
Speaker 5: the hiding the numbers and then.
Speaker 4: The cover up. And if we take a look at.
Speaker 5: Why why voters for no other reason except these that
Speaker 5: I'm about to say, should vote for change, which means
Speaker 5: don't vote Democrat anymore. Vote Republican. Gloria Romero for Lieutenant governor.
Speaker 5: I've urged Steve Hilton for Republican governor. But we take
Speaker 5: a look at the so called bullet train, the bullet
Speaker 5: train that we know has cost already an estimate two
Speaker 5: hundred and thirty billion dollars and they've now released the
Speaker 5: bullet train is probably going to turn into a high
Speaker 5: speed bus. That's crazy. But it doesn't stop with the
Speaker 5: bullet train. You can go into these hospices. We haven't
Speaker 5: found leering centers in California, but it might be worse.
Speaker 5: We found hospice centers where basically you go to say
Speaker 5: I want to have peace until I finally, you know,
Speaker 5: expire and die going to the next world.
Speaker 4: We found that.
Speaker 5: They have hospice a center in a burrito stand, I
Speaker 5: mean a burrito stand. John, think about the crime that's there,
Speaker 5: and then you take a look at the unemployment fraud
Speaker 5: that was taken away, the so called also hearing age
Speaker 5: that turned into a sham. There were supposed to be
Speaker 5: emergency nine to one one upgrade that went down the drain.
Speaker 5: And what about the diapers, I mean the diapers that
Speaker 5: Gavin Newsom's first partner was basically going to profit off
Speaker 5: of in her so called nonprofit I mean, the giveaway that.
Speaker 4: Costs more than if you just walked into.
Speaker 5: Your local target and bought. So this is all of
Speaker 5: like the books, the waste, the fraud, the abuse. But
Speaker 5: you know what I think is even more important why
Speaker 5: voters should just turn away is that this administration and
Speaker 5: if this happened for a while, are hiding the books.
Speaker 5: They're not only cooking them, they're hiding them. And what
Speaker 5: do we mean by got well, how many of us
Speaker 5: know that the administration hired some very fansors I think
Speaker 5: it was Italian tile, to put into this new annex
Speaker 5: in the Capitol. They created secret passageways so the members
Speaker 5: cannot be confronted like by the.
Speaker 4: Ashley Zabalas, you know, the reporters.
Speaker 5: And Sacramento who want them to answer questions. We find
Speaker 5: that they still refuse to release all of these secret
Speaker 5: settlements with you know, compromising situations allegedly between members and
Speaker 5: their staff. And we're finding now too that they're even
Speaker 5: running legislation to hide from us the cost of the
Speaker 5: so called bullet train to nowhere.
Speaker 4: So it goes on and on and on, and.
Speaker 5: We're just saying vote different. You know, this is insanity.
Speaker 5: It's not going to change unless we are willing to
Speaker 5: break one party rule.
Speaker 4: So I invite your listeners.
Speaker 5: If you know, if you're happy with your government, you
Speaker 5: can keep your government. But if you're unhappy, give us
Speaker 5: a chance. Vote differently. Vote for a Republican who understands
Speaker 5: that people deserve better government. If not how much we spend,
Speaker 5: it's what we get out of it. And nobody is
Speaker 5: getting anything good.
Speaker 4: Out of this government.
Speaker 5: So that's the pitch, and I ask people to turn
Speaker 5: out and vote. It's going to continue if we don't
Speaker 5: stand up and just say enough.
Speaker 1: As majority leader, you have worked very closely with multiple
Speaker 1: governors here in the state of California to do things
Speaker 1: like get budgets through and make the state function. We
Speaker 1: have an absentee landlord governor who is running for president
Speaker 1: and doesn't seem interested in the duties of his office,
Speaker 1: and it seems like that attitude has trickled all the
Speaker 1: way down to the other statewide constitutional officeholders and even
Speaker 1: in the state legislature and to local government. One of
Speaker 1: your opponents in the race is the state Treasurer, Fiona
Speaker 1: ma who is running for a lieutenant governor because she's
Speaker 1: turned out a straight state treasurer. And you look at
Speaker 1: her social media accounts. She has a lot to say
Speaker 1: about Donald Trump, She opines about federal issues, she opines
Speaker 1: about ice. But if you're the treasurer when all of
Speaker 1: the fraud that you just described took place on your
Speaker 1: watch and you didn't seem to care. You weren't out
Speaker 1: blowing the horn. You weren't trying to use the power
Speaker 1: and the duties of your office to stop it from happening,
Speaker 1: to prevent taxpayers from being fleeced. You were perfectly happy
Speaker 1: to go along and get along and allow all of
Speaker 1: these criminals to enrich themselves and allow taxpayers to have
Speaker 1: their hard earned money stolen from them by these bad actors.
Speaker 1: It seems like Gavin Newsom's attitude has trickled all the
Speaker 1: way down to every layer of government here in California,
Speaker 1: and it's like a answer that's killing the state.
Speaker 5: You're exactly right, John, And that's how egregious it is.
Speaker 5: And the cynicism not of the people, not of the voters,
Speaker 5: but of the rulers, you know, the monopoly, the so
Speaker 5: called you know, no king's chorus that says we have
Speaker 5: to do better. They basically have a disdainful attitude towards
Speaker 5: the people of California. You mentioned Gavin Newsom. You're absolutely right.
Speaker 5: The guy is missing an action. He's on a delusional
Speaker 5: tour that he can be made president and nobody will
Speaker 5: notice his failed record in California.
Speaker 4: The guy is a.
Speaker 5: Joke, but he's hurting us painfully. But then you take
Speaker 5: a look at the current lieutenant governor who is running
Speaker 5: for treasurer. When the governor is out of state, it's
Speaker 5: the lieutenant governor who should take over. Has anybody seen her?
Speaker 5: Has anybody heard from her? When the governor is out
Speaker 5: of state? The lieutenant governor has authoritative powers, I tell you,
Speaker 5: and I'm lutenan governor. I'm not going to be invisible
Speaker 5: if we have another drifting type governor. I don't think
Speaker 5: we will if we elect a Republican, but stay tuned,
Speaker 5: we might if we elected Democrats. But the current lieutenant
Speaker 5: governor is as much missing in action, she's even more
Speaker 5: invisible because the people don't even know that there's an
Speaker 5: acting governor invisible. So she's running for office. You mentioned
Speaker 5: one of my opponents, the treasurer, who is running for
Speaker 5: office too, and she also has some real problems out
Speaker 5: tied allegedly to a donor from China who is trying
Speaker 5: to buy high school diplomas from a local district. Allegedly,
Speaker 5: I'd say, but that track record looks pretty strong in
Speaker 5: terms of evidence. So she's running for office, just running
Speaker 5: about Orange Man bad. Then continue on it. You have
Speaker 5: an attorney general failing to curb in any of the crime.
Speaker 4: He's out running for his own reelection.
Speaker 5: Then you have the Secretary of State out running for
Speaker 5: re election. Then you have the controller who's not controlling
Speaker 5: any of the ways the fraud and abuse, out.
Speaker 4: Running for reelection.
Speaker 5: Then you have the worst of them, the superintendent of
Speaker 5: public instruction, who thinks because he has run a school
Speaker 5: system into the ground, it's failing. Over fifty percent of
Speaker 5: the kids can't read, or write or do math, and
Speaker 5: he thinks he can be governor. He's out running for
Speaker 5: this position. So when you stop and you look at it, John,
Speaker 5: all of them are running for themselves, like the public
Speaker 5: be damned. Can I say that on radio? I'm not
Speaker 5: sure of It forgets the public and you have to
Speaker 5: wonder who's running the state of California. I will tell
Speaker 5: all our listeners right now, we are on our own.
Speaker 5: The monopoly rule has basically taken us for granted. We
Speaker 5: have to stand up, speak up, show up, mail your
Speaker 5: ballot today or drop it in a dropbox or walk
Speaker 5: it in to a voting center or on election day.
Speaker 4: It's us if we want.
Speaker 5: Change, we have to throw these bums out because they
Speaker 5: don't care about us. They care about their own careers,
Speaker 5: and their record of not showing up is exactly what
Speaker 5: we have to tell the people. As a final reason,
Speaker 5: then throw them out of office.
Speaker 4: Let them go somewhere else.
Speaker 1: The Lieutenant governor's office is a largely ceremonial office where
Speaker 1: the real power comes if the governor were to die
Speaker 1: in office, take another job, become incapacitated, leave the state
Speaker 1: for a long period of time, whatever. The last time
Speaker 1: the lieutenant governor has taken over was when Goodwood Night
Speaker 1: Goodie Knight took over when Earl Warren was appointed to
Speaker 1: the Supreme Court by President Eisenhower. However, this time around
Speaker 1: it could happen again. And I say that because in
Speaker 1: recent polls, Javier Bessera has started to move up and
Speaker 1: he is placed in the top two in several recent polls.
Speaker 1: There's a chance a good chance maybe that he could
Speaker 1: make the November ballot. There's also a chance that he
Speaker 1: could be indicted by the federal government, as we have
Speaker 1: seen his chief of staff cut a deal with the
Speaker 1: Feds for corruption. We have seen Dana Williamson, who is
Speaker 1: the chief of staff, former chief of staff, I should
Speaker 1: say of Galvin Newsom, who has worked closely with Javier
Speaker 1: Besserra on his various political endeavors, also reportedly cutting a
Speaker 1: deal with the Feds, and a third person very close
Speaker 1: to Besserah is also in trouble right now with the
Speaker 1: federal government regarding corruption. If he were to be indicted,
Speaker 1: my guess is there's a chance he could have to
Speaker 1: resign from office, or if he's convicted, maybe he would
Speaker 1: go to federal prison. Do you see that as a
Speaker 1: possibility as you've run for the office of lieutenant governor,
Speaker 1: It is a very real possibility.
Speaker 5: And the position of lieutenant governor number two in the
Speaker 5: state of California has always been overlooked. It can no
Speaker 5: longer continue to be overlooked, and so we need to
Speaker 5: get somebody in there. I believe it's me who's independent.
Speaker 5: I am a Republican in terms of my political registration,
Speaker 5: a former Democrat who saw the failure of a Democrat
Speaker 5: party unwilling to stand up for California's middle class and
Speaker 5: working class, dictater to far left special interest and I,
Speaker 5: as they say, the party left me. I walked away
Speaker 5: though eventually and just said no more. The people deserve better.
Speaker 5: But we need to have somebody in there who won't
Speaker 5: just replicate the same policies of the corrupt administration that
Speaker 5: we see in one that may come after us. So
Speaker 5: you're exactly right on the question of the role of
Speaker 5: the lieutenant governor. I think historically it's been treated as
Speaker 5: sort of a Seinfeld, a job about nothing. But I
Speaker 5: also believe that this has every potential if you get
Speaker 5: a strong person in.
Speaker 4: There who knows what can be done, who knows where
Speaker 4: the bodies are buried, the rules of the game.
Speaker 5: How to work budget, how to work across the aisle,
Speaker 5: Republican and a Democrat as well, because once you finish
Speaker 5: the campaign.
Speaker 4: You have to govern, and that's one thing that I
Speaker 4: know how to do.
Speaker 5: And the time that I spent in Sacramento before people
Speaker 5: know that I worked across the aisle to get tough
Speaker 5: things done, like even some significant education. Before that, I
Speaker 5: worked with with a governor of a party of which
Speaker 5: I was not a part of at that time. So
Speaker 5: you've got to get some good, strong people in there
Speaker 5: who are fair, have integrity, and who believe in sunshine
Speaker 5: in government. And that's something where I have a track
Speaker 5: record on writing laws, bringing forth legislation that allows the
Speaker 5: people of California to see what their own government is doing,
Speaker 5: unlike what we see happening today and Sacramentum.
Speaker 1: Let's switch gears here for a second, because we do
Speaker 1: have some hard numbers in terms of what ballots have been.
Speaker 3: Returned and who's turning them in.
Speaker 1: At this point in twenty twenty two, Democrats represented fifty
Speaker 1: four percent of the ballots returned. At this point in
Speaker 1: this election, they represent forty two percent. They're down twelve
Speaker 1: points from where they were four years ago. At this
Speaker 1: point in twenty twenty two, Republicans represented twenty six percent
Speaker 1: of the ballots turned in. Now they represent thirty seven percent.
Speaker 1: That's an increase in eleven points. Independents represented twenty percent
Speaker 1: in twenty twenty two and twenty one percent in twenty
Speaker 1: twenty six. That's up one point. Why is it do
Speaker 1: you think that Republicans are turning their ballots in at
Speaker 1: a faster pace this time than last time. And why
Speaker 1: have Democrats fallen off a cliff?
Speaker 5: Well, first of all, congratulation Republicans. I think Republicans are
Speaker 5: highly motivated have begun to see that we have had
Speaker 5: an administration that has been derelict in its duty and
Speaker 5: responsibility to the people under.
Speaker 4: The California Constitution.
Speaker 5: Additionally, though, I do think that the Democrats are still
Speaker 5: sort of befuddled over.
Speaker 4: This is it, This is the best you have to
Speaker 4: send us.
Speaker 5: So there's a real dismay amongst everyday voters, every day
Speaker 5: Democrats just saying, you know, who are these people? There's
Speaker 5: no real, you know, shining star in that pool for
Speaker 5: to become governor of the state of California. And then
Speaker 5: we saw that the Democrat Party itself basically was going
Speaker 5: to try to I believe, cover up the sins and
Speaker 5: scandals of their former leader until they saw, oh no,
Speaker 5: this information is coming out. So they basically threw the
Speaker 5: equivalent of the horses hit and the mafioso move against
Speaker 5: Eric's swallwell to get him out of the race, and
Speaker 5: thinking that everything will consolidate now. But it hasn't. It's
Speaker 5: still all over the map. I think ultimately, you know,
Speaker 5: the Democrat party machine is very strong. They are holding
Speaker 5: on too ballots. Would I anticipate there's going to be
Speaker 5: a last minute surge. Remember the governor's sort of teasing
Speaker 5: that on a rare occasion when he was in California.
Speaker 5: I think, but teasing we have a you know, break
Speaker 5: the glass in case of strategy, Make no doubt about it.
Speaker 4: I think they're harvesting the ballots. They're holding on to them.
Speaker 5: Maybe the envelopes are still unsealed, get ready to change
Speaker 5: in case they need to at the last minute change votes.
Speaker 5: But the machine is not going to give up easily.
Speaker 5: So they're holding on. Expect a surge, which means for
Speaker 5: everybody else, Republicans, independents, and I'm going to say common
Speaker 5: sense disaffected Democrats who don't want to go along with
Speaker 5: the old party line. I think these people encourage you
Speaker 5: come out and vote. We've got to make it too
Speaker 5: big to rig, and hopefully to get some clear trends
Speaker 5: by election night so that even when that surge of
Speaker 5: votes perhaps comes in later, they can't turn around the
Speaker 5: vote and can't fool us with some obscure moves, but
Speaker 5: I think we have to be ready for all.
Speaker 4: The important thing is, don't.
Speaker 5: Worry about who's voting right now. It's a moment in
Speaker 5: time seven days. You know, it's like two minutes in
Speaker 5: a baseball in a basketball game. It'll go quickly and
Speaker 5: anything can happen in those final two minute warnings. So
Speaker 5: we are in the final week. Don't worry about what
Speaker 5: the other teams are doing. Keep turning in your ballots,
Speaker 5: turn them in, turn them in, get every neighbor out.
Speaker 5: And I think if we do that, we continue with
Speaker 5: the momentum and we can prevail and avoid the pitfalls
Speaker 5: and potential greater chances to try to opfu, skate and
Speaker 5: erase our vote that may happen right after election day,
Speaker 5: because remember they will still be counting. We have to
Speaker 5: have a clear trend by the evening of election night.
Speaker 5: Let's shoot for that, but we got to get our ballots.
Speaker 1: In last question, we have about sixty seconds left. How
Speaker 1: much of the enthusiasm do you think can be attributed
Speaker 1: to Spencer Pratt Because his ads have gone viral. He's
Speaker 1: being covered on TMZ and forums that don't typically cover
Speaker 1: California politics. Every time he puts a new ad out,
Speaker 1: It's all over all of my social media feeds. People
Speaker 1: are texting it to me, emailing it to me. There
Speaker 1: seems to be a real appetite for that message, and
Speaker 1: he has people engaged who typically don't engage in politics.
Speaker 4: I'm a fan of Spencer Pratt. I've already voted for him.
Speaker 5: He says it this, He says, Look, I'm not a Republican,
Speaker 5: Independent or Democrat.
Speaker 4: I'm an angry voter. They burn my house down, and.
Speaker 5: Every Californian should take that Spencer Pratt message. Whatever label
Speaker 5: we put behind our name, we are an angry Californian.
Speaker 5: But we believe that we can make California golden again,
Speaker 5: and we're going.
Speaker 4: To show up and stand up.
Speaker 5: If Spencer Pratt and his family can do it and
Speaker 5: they got burned out of their home, we can do
Speaker 5: that as well. So in solidarity with Spencer, but in
Speaker 5: solidary with the people of California, let's show up to
Speaker 5: vote and just end the insanity that we have lived
Speaker 5: under for the last sixteen years. And it starts with
Speaker 5: Spencer Pratt. In Los Angeles, Gloria Romero for Lieutenant Governor.
Speaker 5: We can join a formidable partnership to turn around our
Speaker 5: state once again.
Speaker 1: Gloria Romero, candidate for Lieutenant governor here in the state
Speaker 1: of California. You can get her online at Gloria Romero
Speaker 1: the number four ltgov dot com and you can.
Speaker 3: Follow her on exit. Gloria J.
Speaker 1: Romero, Senator Gloria Romero, thanks so much for stopping by.
Speaker 4: Thank you.
Speaker 1: If you'd like to email the show, you can do
Speaker 1: so at Johnny don't like show at gmail dot com.
Speaker 1: That's Johnny don't like show at gmail dot com.
Speaker 3: You don't forget.
Speaker 1: On election Day, which is June the second, a week
Speaker 1: from today, we'll be doing double duty.
Speaker 3: In addition to noon to three, Randy.
Speaker 1: And I'll be back at seven o'clock at night all
Speaker 1: the way until nine covering all the election returns here
Speaker 1: in the state of California. We'll be on KABC in
Speaker 1: southern California, KSFO in the Bay Area, and KMJ in
Speaker 1: Fresno and the Central Valley, so hopefully you'll be able
Speaker 1: to tune into that.
Speaker 2: Well.
Speaker 1: Today was a big day on Wall Street, yet another record.
Speaker 1: The S and P five hundred and NASDAK set new
Speaker 1: records today. Of course, the s and P five hundred
Speaker 1: and NASDAK. They've been setting new records again and again
Speaker 1: and again and again. The stock market right now is cooking.
Speaker 1: Joining us to talk about this is the host of
Speaker 1: YouTube's Dumb Money Live, who's an investor best known for
Speaker 1: turning a twenty thousand dollars broke you count and eighty
Speaker 1: million dollars using unconventional socially driven investment strategies. You can
Speaker 1: get them online at dumb money dot tv and follow
Speaker 1: him on x at Chris Camillo. Chris Camillo, Welcome.
Speaker 2: How are you doing? Good to be here?
Speaker 1: I'm great, Thanks so much for stopping by. So the
Speaker 1: stock market right now is as hot as my angels
Speaker 1: are cold.
Speaker 3: Are you surprised?
Speaker 2: No, not, not in the least. I've been in the
Speaker 2: game a long time. And you know, rather than kind
Speaker 2: of start with the stock market hot, I'd rather start
Speaker 2: with the fact that we're going through a structural technological
Speaker 2: leap unlike we've ever seen in our lifetime. So the
Speaker 2: stock market is simply a reflection of what's happening in
Speaker 2: the world with artificial intelligence and what's about to come
Speaker 2: the next decade. I think.
Speaker 1: So you think people who are currently investing, provided they're
Speaker 1: investing the right way, they're in the water right as
Speaker 1: the waves about to hit.
Speaker 2: Well, you know, it's hard to say that there's you know,
Speaker 2: you either believe that what we're seeing right now is
Speaker 2: very real. And if you spend time working with AI
Speaker 2: directly or spend all the time deeply engage with those
Speaker 2: that are working with AI directly, I think you come
Speaker 2: to terms with the fact that the biggest thing to
Speaker 2: ever happen to our global economy, and we'll have massive
Speaker 2: implications both good and bad, on various sectors and companies,
Speaker 2: and a lot of the stock market the last couple
Speaker 2: of years has been carried by a small number of
Speaker 2: companies that I think have earned the right to kind
Speaker 2: of get the you know, majority of benefits in terms
Speaker 2: of cash and flows in that they're you know, ideally
Speaker 2: positioned to win in this new world.
Speaker 1: And I've seen that You've said before that you think
Speaker 1: essentially that AI is going to hit in three different
Speaker 1: stages and or about ready to get hit by the
Speaker 1: third stage.
Speaker 2: Yeah, I think investors that have done the best over
Speaker 2: the last few years have always been a steps ahead.
Speaker 2: If you think about this as being like an AI
Speaker 2: super cycle, which I often cite. There was a phase one,
Speaker 2: which was that magical moment we remember when we first
Speaker 2: hopped on chat GPT and we thought, Wow, this is
Speaker 2: this thing can think, or at least pretend to think
Speaker 2: really well, it's almost like magic, and it's the change
Speaker 2: of the world. And a lot of money was thrown
Speaker 2: at the companies that were responsible for building that technology,
Speaker 2: which was open AI and Thropic and Google and a
Speaker 2: couple others. The second wave of the AI supercycle was
Speaker 2: what's commonly referred to now as the infrastructure layer. So
Speaker 2: all the companies that were responsible for providing the technology
Speaker 2: that enabled that step up, you know in use cases,
Speaker 2: so the chip companies like in Nvidia, the data center companies,
Speaker 2: energy companies, all the companies across the entire supply chain
Speaker 2: that enables artificial intelligence. That's all part of the infrastructure
Speaker 2: wave that has just been going on for a while now,
Speaker 2: and it's been unlike anything we've ever seen before, quite
Speaker 2: honestly and probably deservedly. So. The third wave, which I
Speaker 2: believe is imminent to probably at most two to three
Speaker 2: years away, is what I'm calling the efficiency wave. So
Speaker 2: this is a transition from the companies that are building
Speaker 2: the shovels to make I possible, to the companies that
Speaker 2: are actually utilizing AI health to become meaningfully more productive
Speaker 2: and efficient. So if you think about this next wave
Speaker 2: as being any company that has a high cost structure,
Speaker 2: and as we know, most companies in twenty twenty six
Speaker 2: have very high cost structures because most companies are reliant
Speaker 2: on employing a lot of humans that have gotten really
Speaker 2: expensive over the past ful of decades. So as those
Speaker 2: companies start to become more efficient as they utilize AI
Speaker 2: to do competitive tasks, even high level strategy. We saw
Speaker 2: this month Ken Griffin at Citadel, who manages one of
Speaker 2: the largest, most sophisticated hedge funds in the world, come
Speaker 2: out and say that he could barely sleep because he
Speaker 2: saw AI doing some of the most sophisticated jobs at
Speaker 2: his company and better than any of his human employees.
Speaker 2: As we start to see companies transitioning to a much
Speaker 2: more efficient style of an intelligence as opposed to human labor,
Speaker 2: that should reflect more productivity, high multiples for those companies,
Speaker 2: and the impact I believe will be much broader than
Speaker 2: what we've seen during this instructure wave, meaning that more
Speaker 2: companies will benefit, and I think we'll see a broader
Speaker 2: increase in valuations across the entire stock market as opposed
Speaker 2: to just ten or twenty companies that were positioned to
Speaker 2: fuel AI. I think it will be a really exciting
Speaker 2: time for investors, and I believe that will be the
Speaker 2: next kind of meaningful leg up of the market, even
Speaker 2: though most here are very concerned that the market feels
Speaker 2: poppy and overvalued.
Speaker 1: Do you think that this wave is strong enough that
Speaker 1: it can withstand if there's global instability, if there's another
Speaker 1: war that breaks out, or we're broadcasting here in California,
Speaker 1: where we talk about the failures of our state government
Speaker 1: on a regular basis. We are a very poorly run state.
Speaker 1: Many of these companies are headquartered here. Some of them
Speaker 1: have already moved out, but obviously when you talk about
Speaker 1: these data centers and the energy that's required and those
Speaker 1: sorts of things, California has fallen on its face in
Speaker 1: any number of occasions. Do you think that this wave
Speaker 1: is strong enough to withstand things that are beyond their control.
Speaker 2: Well, I do know one thing for sure, and that
Speaker 2: is there are going to be a lot of ups
Speaker 2: and downs right over the next few years. These sorts,
Speaker 2: this sort of efficiency doesn't necessarily happen overnight, So there
Speaker 2: will be moments, whether it was you know, the tariffs
Speaker 2: are last year, whether it was the Iran war this year,
Speaker 2: it will be something else, I'm sure later on this
Speaker 2: year and then again in twenty twenty seven that will
Speaker 2: seem meaningfully more negative at least in the short term,
Speaker 2: as opposed to the positive ultimate income that we think
Speaker 2: we're going to get from AI in the long term.
Speaker 2: So I think we're going to see a tremendous amount
Speaker 2: of volatility. But to answer your question, yes, ultimately, I
Speaker 2: think this AI cycle that we're in, of course of
Speaker 2: the next five or ten years, we can avoid blowing
Speaker 2: each other up with AI, right, if we can avoid
Speaker 2: the worst of all worst case scenarios. I do think
Speaker 2: that this is the main character in the storeline for
Speaker 2: the next decade, and all of the things that you
Speaker 2: are referring to. I'm a fairly optimistic guy. I think
Speaker 2: over the long run, AI is actually going to help
Speaker 2: solve those problems as well. You know, we are all
Speaker 2: frustrated by government. You know, we're all frustrated by bureaucracy.
Speaker 2: You know, we are scared to death about how we
Speaker 2: interact with other nations, especially volatile nations like Iran and
Speaker 2: whoever happens to be leading our country at that time.
Speaker 2: Do we have the proper you know, people in place
Speaker 2: to actually you know, get us over the goal line
Speaker 2: in these negotiations with other countries. I think EI is
Speaker 2: actually going to be one of the most powerful tools
Speaker 2: at our disposal long term to solve those problems where
Speaker 2: historically we've been really frustrated at how some humans have
Speaker 2: handled those scenarios, especially as it relates to the way
Speaker 2: government is run. I mean, if no one's really talking
Speaker 2: about this yet, but AI has the capacity to maybe
Speaker 2: be the most positive impactful thing that we've seen government
Speaker 2: really in our history. So, you know, right at a
Speaker 2: time time when we're more concerned about government officials than
Speaker 2: we ever have been in government waste and you know,
Speaker 2: dirty politics, could AI be this illusion? I actually think
Speaker 2: it might be. Not that we're going to let AI
Speaker 2: run wild and run our government force, you know, unsupervised,
Speaker 2: but I think at some point it's going to get
Speaker 2: really difficult to overrule what we believe will be of
Speaker 2: higher level of intelligence. It's telling us, hey, here's how
Speaker 2: you can run a great government. Here's how you can
Speaker 2: fix the problems that your voters want to fix. You know,
Speaker 2: if you think about it, most issues we've had at
Speaker 2: the government level has been about communication. I mean, I
Speaker 2: know the parties disagree with each other in some regard,
Speaker 2: but I think with most of the problems, both parties
Speaker 2: ultimately want to get to the same outcome, and they
Speaker 2: just degree on how to get there. I think AI
Speaker 2: is going to help us that.
Speaker 1: Well, maybe you're right, maybe AI will save us because
Speaker 1: if AI comes out with the sex robots, people will
Speaker 1: be less pissed off and they won't want to go
Speaker 1: to war.
Speaker 2: I wasn't even going to go there, but you know what,
Speaker 2: here you go. I mean, there's a lot of positives
Speaker 2: that are potentially out there, right why. I mean, there's just,
Speaker 2: quite honestly, there's almost an infant number of ways that
Speaker 2: AI could make the world better, right. I think along
Speaker 2: that path there will be hurdles.
Speaker 1: Do you think the public will embrace it? And I
Speaker 1: say that because let's say American Airlines comes up with
Speaker 1: AI technology that will allow the planes to fly without
Speaker 1: the need of pilots. You still have to get people
Speaker 1: to buy into it to be willing to sit in
Speaker 1: an airplane seat on a jet that doesn't have a
Speaker 1: pilot in the cockpit.
Speaker 2: The public will eventually embrace it. It's just like self driving, right, Like,
Speaker 2: did you think ten years ago we'd have cars flying
Speaker 2: around the city with no drivers in them? The point
Speaker 2: that's actually insane. I mean there are people and kids
Speaker 2: walking across the street, and we have, you know, six
Speaker 2: thousand pound vehicles with no drivers in them flying around corners.
Speaker 2: So I think if we were able to embrace that
Speaker 2: on the timeline that we did, there's no doubt in
Speaker 2: my mind that we will embrace AI for everything. Will
Speaker 2: there be people pushing back at every step along the way,
Speaker 2: of course there will be, But there's never been a
Speaker 2: time in history when we have an ultimately embraced advancement.
Speaker 2: You really don't have a choice, right because if you
Speaker 2: don't embrace it, someone else will and you'll get left behind.
Speaker 2: So I have I'm completely confident that we will ultimately
Speaker 2: embrace this technology. I also think that there will be
Speaker 2: an equal amount of thirst for what we're leaving behind.
Speaker 2: I think humans are really concerned learn that there is
Speaker 2: no place for humans in the future. I completely disagree.
Speaker 2: I think AI is going to allow us to expand enterprise,
Speaker 2: expand new ideas, expand economies unlike we've ever seen in
Speaker 2: our lifetime. I think there will be companies with less
Speaker 2: people per company or less people per project, but I
Speaker 2: think there will be infinitely more projects, infinitely more problems
Speaker 2: getting solved, infinitely more companies new issues we can't even
Speaker 2: imagine today, because once we solve these problems, we'll use
Speaker 2: AI and robotics and automation to do things that we
Speaker 2: never thought were even possible before. So I think if
Speaker 2: you think that way, AI will actually end up creating
Speaker 2: more and better and more creative jobs than we have
Speaker 2: today twenty years from now.
Speaker 3: Now.
Speaker 2: What happens over the next decade, I can't say. There
Speaker 2: will be bumps along the road. Will have to figure
Speaker 2: that out as a society, and I think we will.
Speaker 1: I did a Q and A with an economist at
Speaker 1: the California Club not long ago where we were talking
Speaker 1: about the wave came before AI, where bitcoin was the
Speaker 1: big thing, and he said, that's decentralized where you could
Speaker 1: be in Idaho, or you could be in Thailand, you
Speaker 1: could be in Europe, whatever, and bitcoin is so decentralized
Speaker 1: you didn't have to be in one place, and he said,
Speaker 1: AI is the opposite. And a lot of these companies
Speaker 1: are headquartered in the San Francisco Bay Area where we're
Speaker 1: broadcasting right now, where the people who work there are
Speaker 1: people who are working under one roof. And because of that,
Speaker 1: because California is the epicenter of AI, one of the
Speaker 1: most undervalued assets on planet Earth is real estate in
Speaker 1: the San Francisco Bay Area because that industry is going
Speaker 1: to explode and it's taking place right there.
Speaker 2: I think that's a fair assessment, you know, I really do.
Speaker 2: There is a huge concentration of talent in that area.
Speaker 2: We saw We saw it during the dot com boom
Speaker 2: right we're seeing it again now. And I think it
Speaker 2: ultimately maybe will benefit in terms of I don't even
Speaker 2: want to use the word benefit because I think a
Speaker 2: lot of people will see it as a negative. But
Speaker 2: I think there's going to be another kind of rush
Speaker 2: for an inflationary period of real estate values and everything
Speaker 2: else where. There's going to be a concentration of new wealth.
Speaker 2: I think this is going to bring such a massive
Speaker 2: amount of new wealth to certain areas of the world
Speaker 2: that have high concentration of people who are benefiting most
Speaker 2: from the artificial intelligence cycle, and a lot of that
Speaker 2: is where these companies sent. You're exactly right. I mean
Speaker 2: I saw an article that said there's a few hundred
Speaker 2: few hundred millionaires worth one hundred million or more that
Speaker 2: are about to pop up in Austin, Texas when the
Speaker 2: spacexcile happens. So yeah, I think you will see it
Speaker 2: in that area.
Speaker 3: Are there any specific companies when you can look.
Speaker 2: At And by the way, every time California get itself
Speaker 2: into a hole, every time California gets itself into a
Speaker 2: hole something like that, this tends to happen right where
Speaker 2: all of a sudden you have just a massive amount
Speaker 2: of new wealth, and that wealth ends up resulting in
Speaker 2: more tax revenue. That tax revenue generally tends to save
Speaker 2: California out of its hole. Right, state will more likely
Speaker 2: than not spend again, and the cycle starts over. I
Speaker 2: don't know how many cycles we have left, but it's
Speaker 2: ironic that here we are again and it might ai
Speaker 2: might actually save California.
Speaker 1: Well, unfortunately, you're right. I just wish we wouldn't have
Speaker 1: to be hanging off the cliff to get there. But
Speaker 1: that seems to be the pattern that we follow. We
Speaker 1: have about sixty seconds left as you take a look
Speaker 1: at your assessment of where we're headed and where this
Speaker 1: industry is. Are there any companies where you look at
Speaker 1: you go, oh my god. If there's one place to
Speaker 1: put the farm, because this company is going to benefit
Speaker 1: more than anyone else from this technology, that would be it.
Speaker 2: Yeah. I mean, listen, I don't make recommendations for others,
Speaker 2: but my largest holding is Amazon. I think they're ideally
Speaker 2: positive benefit from all of those games of a high
Speaker 2: for the most part, right, so, they are deep in
Speaker 2: the infrastructure layer with AWS. They make trainium ships, which
Speaker 2: is I think a fifty billion dollar division, which is
Speaker 2: one of a small foal of AI chip companies in
Speaker 2: the world. But they also will benefit meaningfully from this
Speaker 2: efficiency wave through their retail division. Right. Amazon spent twenty
Speaker 2: five years building out world structure and logistics, and as
Speaker 2: AI automation robotics start to hit next day, I can't
Speaker 2: think of a company that be more efficiencies uh in
Speaker 2: margin increase than Amazon globally. And they're also the third
Speaker 2: largest digital advertising company in the world. Ad tizing is
Speaker 2: about to become more targeted, more efficient, more personalised, and
Speaker 2: just contextually more rich. And when we have better, more
Speaker 2: targeted advertising that people relate to, the advertising mediums win.
Speaker 2: And you know Amazon's the top three company that space too,
Speaker 2: So you're getting like an entire flywheel of efficiency at Amazon.
Speaker 2: So if you believe we're going through a structural change,
Speaker 2: that will only be bigger and bigger year after year.
Speaker 2: I love Amazon here as a company that doesn't really
Speaker 2: get the respect it deserves as a beneficiary of the
Speaker 2: AI cycle.
Speaker 1: Chris Camillo, host of YouTube's Dumb Money Live. You can
Speaker 1: get them online at dumb Money dot tv and follow
Speaker 1: him on x at Chris Camillo. Chris Camillo, thanks so
Speaker 1: much for stopping by.
Speaker 2: Of course, anytime Happy.
Speaker 1: I'll be back tomorrow at noon, and hopefully Randy'll make
Speaker 1: his flight and he'll be back tomorrow as well.
Speaker 3: See you then,