WEBVTT - Apple WWDC Kicks Off and Twitter's US Ad Sales Plunge 0:00:00.080 --> 0:00:01.000 I'm inde Caroline Had. 0:00:01.000 --> 0:00:03.960 We're at Bloomberg's world headquarters in New York at Ludlow. 0:00:04.040 --> 0:00:07.440 He's live in company in California. Because it is Apple's WWDC. 0:00:08.039 --> 0:00:12.080 This is Bloomberg Technology coming up. Full coverage of that 0:00:12.280 --> 0:00:15.640 very event. As Apple prepares to debut is long await 0:00:15.680 --> 0:00:18.119 to mix reality headset, and as the company nears, of 0:00:18.120 --> 0:00:21.240 course a three trillion dollar market cap. Much more ahead, 0:00:21.239 --> 0:00:25.040 Plus we'll get perspective on virtual and augmented reality gaming 0:00:25.320 --> 0:00:28.080 in today's Venture Capital Spotlights. That's with Abba Atherton of 0:00:28.160 --> 0:00:32.120 Patron and Twitter. The US AD sales plunging, we understand. 0:00:32.120 --> 0:00:35.599 We'll discuss the woes facing the incoming CEO, Linda Yakarina. 0:00:35.640 --> 0:00:37.479 It's her first day on the job. This is the 0:00:37.479 --> 0:00:38.280 company forecast. 0:00:38.360 --> 0:00:41.720 Small declines ahead, all that and so much more. First, 0:00:41.800 --> 0:00:46.040 let's check in on these markets, because while is still 0:00:46.120 --> 0:00:48.639 technology managing to power through some of the warriores, when 0:00:48.680 --> 0:00:50.519 it comes to the macro front, we've got the services 0:00:50.600 --> 0:00:52.320 data showing actually some weakness there. 0:00:52.479 --> 0:00:54.400 Maybe that's actually pulling back some of the yields that 0:00:54.440 --> 0:00:55.600 we see on the two year yield. 0:00:55.800 --> 0:00:57.920 Maybe people thinking the FED really can't hike into this 0:00:57.960 --> 0:01:00.920 sort of environment quite to the anticipation that previously done, 0:01:00.960 --> 0:01:03.680 but notable outperformance of technology on top. We'll dig into 0:01:03.680 --> 0:01:05.840 some of the micromovers, but NASDAC up almost half a 0:01:05.840 --> 0:01:06.559 percentage point. 0:01:06.560 --> 0:01:08.280 Not so though for bitcoin crypto. 0:01:08.360 --> 0:01:10.520 On the downside, this risk asset not liking some of 0:01:10.520 --> 0:01:13.400 the moon music around finance, of course, because it's exchange 0:01:13.400 --> 0:01:17.160 worldwide for crypto. They see the SEC ayer there, the 0:01:17.200 --> 0:01:20.399 SEC sewing both miinance and indeed its founder cz were 0:01:20.440 --> 0:01:22.280 of by four and a half percent, so accelerating some 0:01:22.319 --> 0:01:23.640 of that sell off on the back of that news. 0:01:23.720 --> 0:01:25.920 Let's move on to some of the key micromovers though, 0:01:25.920 --> 0:01:26.759 because look we. 0:01:26.760 --> 0:01:28.920 Have got some buoyancy, certainly in Tesla stock. 0:01:28.959 --> 0:01:31.480 We've just been looking all about things SpaceX, but Elon's 0:01:31.520 --> 0:01:33.440 other play at one point seven percent. Some of the 0:01:33.520 --> 0:01:36.480 Chinese data, the car sales looking at growth month on 0:01:36.560 --> 0:01:38.080 month and significant. 0:01:37.520 --> 0:01:38.400 Growth year on year. 0:01:38.600 --> 0:01:41.440 After we see that Shanghai gigafactory managing to come out 0:01:41.480 --> 0:01:44.480 post COVID. Meta actually on the upside, getting some rates 0:01:44.480 --> 0:01:47.640 from Oppenheimer, for example, saying big bet for AI. They 0:01:47.640 --> 0:01:51.240 see Meta outperforming and though the chicks so the chip 0:01:51.240 --> 0:01:53.880 stocks are lagging today we're seeing the socks currently off 0:01:53.880 --> 0:01:56.320 by one point two percent, so the Philadelphia se we 0:01:56.360 --> 0:01:57.680 conductor Inex on the downside. 0:01:57.680 --> 0:01:58.920 Basically, last time I checked. 0:01:58.720 --> 0:02:01.400 Every single chip name apart from AMD was on the downside. 0:02:01.520 --> 0:02:03.880 As we just see city group going negative on that 0:02:03.920 --> 0:02:04.720 particular outlook. 0:02:04.720 --> 0:02:05.640 But let's look at what. 0:02:05.560 --> 0:02:08.400 Really we are powering in terms of the outperformance in 0:02:08.520 --> 0:02:09.200 n tech today. 0:02:09.240 --> 0:02:11.440 It's going to be Apple. Look at its. 0:02:11.200 --> 0:02:14.320 Current market cap two point nine trillion, closing in on 0:02:14.320 --> 0:02:17.359 that three trillion row once we saw it just hit, 0:02:17.680 --> 0:02:20.280 but it never closed up that number back in twenty 0:02:20.320 --> 0:02:23.360 twenty two, and we see it just reprise up forty 0:02:23.400 --> 0:02:26.360 percent on the year to date for this particular stock. 0:02:26.480 --> 0:02:28.080 And of course we want to go out to Apple's 0:02:28.080 --> 0:02:32.320 at Worldwide Developers Conference or WWDC as it's known, kicking 0:02:32.320 --> 0:02:35.519 off running through June ninth, and look, tech giants, long 0:02:35.560 --> 0:02:38.399 awaited mixed reality headset is what we're all focused on. 0:02:38.840 --> 0:02:41.720 And ed you're on the ground, give us the latest. 0:02:41.760 --> 0:02:43.640 What's it feel like, what's their sense like? What's the 0:02:43.639 --> 0:02:44.360 goodie bag like? 0:02:45.080 --> 0:02:48.480 It feels like the biggest event for Apple in a decade? Right, 0:02:49.040 --> 0:02:51.480 Mark Goerman has set out what we expect through his 0:02:51.480 --> 0:02:54.880 Boomberg News reporting and Mixed reality headset. Three thousand dollars, 0:02:54.880 --> 0:03:00.120 price points sixteen gigabyte RAM memory, carbon fiber, aluminum glass. 0:03:01.120 --> 0:03:04.800 The question for this mixed VRAR headset is what is 0:03:04.840 --> 0:03:05.760 the slate of content? 0:03:06.280 --> 0:03:07.799 What are the apps that are ready to go? 0:03:07.880 --> 0:03:10.600 Because the price point's interesting, not even high enough for 0:03:10.639 --> 0:03:13.680 Apple to make high margin, but low enough to not 0:03:13.720 --> 0:03:15.320 price them out of the market. Cara, I find this 0:03:15.440 --> 0:03:18.480 dynamic so interesting. Go back to twenty fourteen when they 0:03:18.520 --> 0:03:21.880 unveiled the Apple Watch in September that year. This feels 0:03:21.880 --> 0:03:24.840 like the biggest move into a new category since that point, 0:03:25.120 --> 0:03:26.480 a historic moment for Apple. 0:03:26.960 --> 0:03:28.720 Yeah, let's look at all things Apple. 0:03:28.800 --> 0:03:30.679 Let's look at all things with your guest as well ed, 0:03:30.760 --> 0:03:33.240 because I mean, you're just saying, really, this is a 0:03:33.240 --> 0:03:35.320 price point that's going to be high. This is sales 0:03:35.320 --> 0:03:38.960 that actually isn't about margin, isn't about scale, but it's 0:03:38.960 --> 0:03:42.160 about reinventing what we think of. 0:03:42.560 --> 0:03:45.560 As virtual reality as AR as well. And you've got 0:03:45.560 --> 0:03:46.200 the perfect guest. 0:03:46.520 --> 0:03:48.520 Yeah, you asked me what it's like on the ground, Well, 0:03:48.560 --> 0:03:51.520 what it's like is seeing those familiar faces, the veterans 0:03:51.960 --> 0:03:54.600 of these Apple events, and one of them is Karell 0:03:54.680 --> 0:03:59.080 in a Millionaisy principal analysts that creative strategies. You heard 0:03:59.120 --> 0:04:02.840 my pream yeah about the mixed reality headset. What is 0:04:02.920 --> 0:04:04.840 this moment in Apple's history for you? 0:04:05.160 --> 0:04:06.160 I totally agree with you. 0:04:06.240 --> 0:04:10.280 That is the big moment for Tink Cook is the 0:04:10.480 --> 0:04:15.920 big announcement of a new era, a new market building 0:04:16.000 --> 0:04:18.599 vote of everything that he has done for of a 0:04:18.640 --> 0:04:21.599 company since he took over the leadership. 0:04:21.760 --> 0:04:22.000 Right. 0:04:22.080 --> 0:04:25.039 So, I think we are going to look at opportunity 0:04:25.320 --> 0:04:30.640 in enterprise as well as opportunity more opportunity in content. 0:04:30.960 --> 0:04:34.640 Those are, in my opinion, the two area where the 0:04:34.800 --> 0:04:38.000 var mixed reality heads it's going to play. 0:04:38.279 --> 0:04:43.080 The specifications three thousand dollars reported by Bloomberg News, sixteen 0:04:43.080 --> 0:04:44.480 gigabyte rand memory. 0:04:45.640 --> 0:04:47.520 You look at the materials that. 0:04:47.600 --> 0:04:50.680 Used to make it, but it really seems like the 0:04:50.720 --> 0:04:53.159 big question is what you can actually use it to do? 0:04:54.040 --> 0:04:56.560 Yeah, And I think that's exactly the right question to 0:04:56.640 --> 0:04:59.080 ask right now. To be honest with you, it doesn't 0:04:59.080 --> 0:05:02.200 really matter in term of you're looking at early adopters 0:05:02.279 --> 0:05:04.560 that will buy to figure out what you're going to 0:05:04.640 --> 0:05:07.120 do with it, even if it's three thousand dollars. You're 0:05:07.120 --> 0:05:10.320 looking at developers are looking at the opportunity to expand 0:05:10.360 --> 0:05:14.920 their iOS and mac os and iPad os market, and 0:05:14.960 --> 0:05:17.920 then you're going to look at time before the mass 0:05:17.960 --> 0:05:20.440 market is going to be ready for it. So there's 0:05:20.520 --> 0:05:24.039 a I think there's opportunity to create the ecosystem in 0:05:24.080 --> 0:05:26.279 the same way as app or you talked about Watch, 0:05:26.560 --> 0:05:29.600 but I think a good comparison is also the iPad, 0:05:29.720 --> 0:05:33.720 where at the beginning you were using iOS apps and 0:05:33.760 --> 0:05:37.320 then developers came with dedicated up. I wonder if we're 0:05:37.320 --> 0:05:38.839 going to see a similar thing here. 0:05:39.120 --> 0:05:42.040 I spent the morning going through the data from twenty 0:05:42.080 --> 0:05:45.320 twenty two for augmented reality and VR headsets three hundred 0:05:45.360 --> 0:05:49.359 thousand globally and augmented less than eight million for VR. 0:05:50.120 --> 0:05:53.719 How much of the catalyst will Apple's move be for 0:05:53.880 --> 0:05:56.400 what is a young product segments? 0:05:56.960 --> 0:06:00.240 Everybody's going to come, right, it's the classic building and 0:06:00.279 --> 0:06:03.559 they will come. Apple has done that time and time again, 0:06:03.800 --> 0:06:07.000 right coming into a market that hasn't quite taken off, 0:06:07.480 --> 0:06:11.880 or it was but then installed, and so they're able 0:06:11.960 --> 0:06:14.960 to re energize that. I think from a developer perspective, 0:06:15.000 --> 0:06:18.760 there's no question that these offer a huge opportunity and 0:06:18.920 --> 0:06:20.880 others who will come to the market and see what. 0:06:21.000 --> 0:06:22.640 Is available Carolina. 0:06:22.920 --> 0:06:26.120 Meanwhile, the rest of the market is just completely focused 0:06:26.120 --> 0:06:28.960 on artificial intelligence, it feels like, and there's a mixed 0:06:29.040 --> 0:06:31.839 viewpoint here from analysts that we're getting some like web Bush, 0:06:31.839 --> 0:06:33.200 I think we're going to hear a lot about AI 0:06:33.240 --> 0:06:35.920 from Apple today others, while our own Mark Gumman saying 0:06:36.560 --> 0:06:38.400 this is not the time or place and actually wait 0:06:38.440 --> 0:06:39.560 for it in a year or so. 0:06:39.680 --> 0:06:41.400 What do you make of Apple's AI play? 0:06:41.960 --> 0:06:44.120 I think that Apple has been talking about AI for 0:06:44.160 --> 0:06:46.960 a long time, but in a different way. You know, 0:06:47.200 --> 0:06:49.760 first it was Siri, and then the talk around Siri 0:06:49.960 --> 0:06:54.000 went away and became it became more about on device 0:06:54.400 --> 0:06:57.599 machine learning, which is still part of AI. 0:06:57.760 --> 0:06:59.599 Is what's still you need for AI? 0:07:00.040 --> 0:07:03.719 Apple is in a different place compared to say a 0:07:03.760 --> 0:07:07.360 Google or a Microsoft because they don't own their own 0:07:07.480 --> 0:07:11.440 cloud and so they are dependent on others to run 0:07:11.680 --> 0:07:14.560 big models. So they need to bring us back to 0:07:14.600 --> 0:07:18.320 what is the value of artificial intelligence on my device 0:07:18.800 --> 0:07:22.560 and link to that is the value of artificial intelligence 0:07:22.640 --> 0:07:25.640 to me as a user? And there's I would argue, 0:07:25.760 --> 0:07:29.280 no one else that knows their users as much as 0:07:29.320 --> 0:07:30.000 Apple does. 0:07:30.560 --> 0:07:33.400 To that end, anything that you're excited about from what 0:07:33.480 --> 0:07:35.760 else will be unveiled today. We know that they'll probably 0:07:35.760 --> 0:07:39.000 be having an update to on the financial offerings, and 0:07:39.040 --> 0:07:41.600 it feels as though it's not a particularly pleasant place 0:07:41.600 --> 0:07:43.559 to be right now if you're a fintech and seeing 0:07:43.640 --> 0:07:46.080 just how much more Apple can own that space. What 0:07:46.120 --> 0:07:48.120 are you thinking about in terms of the health area? 0:07:48.440 --> 0:07:49.200 What excites you? 0:07:49.440 --> 0:07:49.640 Yeah? 0:07:51.760 --> 0:07:54.760 Yeah, Obviously this is the developer conference, so I am 0:07:55.080 --> 0:07:59.480 really interested in seeing what other enhancements all of the 0:07:59.520 --> 0:08:03.960 platform from watch to iPad, to iOS and map will bring. 0:08:05.000 --> 0:08:08.040 But we also know that there's likely to be some 0:08:08.320 --> 0:08:10.640 new macs, and I think when I think about that 0:08:10.680 --> 0:08:14.720 in particular, is the opportunity that Apple is continuing to 0:08:14.800 --> 0:08:18.240 have in an enterprise environment. You know, Apple never talks 0:08:18.280 --> 0:08:21.680 about the enterprise business. It's always a consumer company. But 0:08:21.720 --> 0:08:25.800 the reality is that they're gaining enormous share in enterprise 0:08:26.000 --> 0:08:29.240 and if they are bringing to the market and MacBook 0:08:29.280 --> 0:08:33.959 are fifteen inch at an aggressive price point, then the 0:08:34.120 --> 0:08:36.560 share will grow strategically for them. 0:08:38.040 --> 0:08:43.240 The developers love WWDC. It is for them, Watch os, 0:08:43.360 --> 0:08:45.800 ten iOS, seventeen software. 0:08:46.480 --> 0:08:47.719 What are you most excited about that? 0:08:48.520 --> 0:08:52.679 I'm you know, I don't expect big things. I continue 0:08:52.720 --> 0:09:00.520 to expect personalized care if you like, the ability of 0:09:01.679 --> 0:09:04.960 really pushing especially the phone and watched to be more 0:09:05.000 --> 0:09:08.880 of the health and security device we saw last year. 0:09:09.040 --> 0:09:12.960 Some features those are the kind of things that I'm expecting. 0:09:13.120 --> 0:09:15.960 And then it'd be interesting to see what we see 0:09:16.000 --> 0:09:21.040 around messaging and FaceTime. Whether you know this this little 0:09:21.080 --> 0:09:25.240 fight with Android and r CS will end this time 0:09:25.280 --> 0:09:25.880 around or not. 0:09:26.120 --> 0:09:29.640 Well, were you at Google Io? I was not well. 0:09:30.160 --> 0:09:31.880 Reason I bring that up is at Google I they 0:09:31.920 --> 0:09:36.000 reference this fight in a sort of hint, hint, way, 0:09:36.720 --> 0:09:38.400 go back to the headset. I'm sorry we have to 0:09:38.440 --> 0:09:42.920 mixal But those developers in the audience, what is it 0:09:42.960 --> 0:09:45.959 that they'll want to hear? Because ultimately we've reported the 0:09:45.960 --> 0:09:49.200 Bloomberg that actually of Core Suite apps on iPhone and 0:09:49.240 --> 0:09:52.600 iPad will be available on the mixed reality headset, but 0:09:52.760 --> 0:09:55.280 they will develop its next generation functionality. 0:09:56.200 --> 0:09:58.680 Yeah. I think for the developers, all about the tools, right, 0:09:58.920 --> 0:10:01.559 is how easy is app or going to make it 0:10:01.600 --> 0:10:05.120 for them to take those up that are already available 0:10:05.400 --> 0:10:08.960 just you know, regularly ported onto the to make them 0:10:09.000 --> 0:10:12.400 better and to make other opportunity for them to monetize. 0:10:12.559 --> 0:10:15.319 You know, how much richer is that there's experience is 0:10:15.360 --> 0:10:18.240 going to be for their apps that allow them to 0:10:18.320 --> 0:10:20.120 monetize more from the app. 0:10:20.679 --> 0:10:24.520 Bloomberg is reporting that Apple hopes to sell nine hundred 0:10:24.559 --> 0:10:27.760 thousand units of the Mixed Reality headset in year one. 0:10:28.120 --> 0:10:32.160 What's your reaction to that low high? 0:10:32.200 --> 0:10:35.160 You know, it's hard to tell before seeing the headset 0:10:35.240 --> 0:10:37.640 and see what the value is. I think a lot 0:10:37.679 --> 0:10:39.880 of it will depend on how many different things can 0:10:39.920 --> 0:10:43.240 you do with it and from it, not just the 0:10:43.240 --> 0:10:46.440 app perspective, but from a content perspective. We've seen Apple 0:10:46.880 --> 0:10:48.599 really doubling down on sports. 0:10:49.840 --> 0:10:52.760 I do think that is interesting, isn't it where this 0:10:52.960 --> 0:10:56.640 makes the most sense? Ed's great reporting. Much has been 0:10:56.679 --> 0:10:59.439 said about sort of the Quest three that's just been 0:10:59.440 --> 0:11:01.200 coming on the mark. We understand it's going to be 0:11:01.240 --> 0:11:04.240 had a well five hundred bucks versus the three thousand 0:11:04.360 --> 0:11:06.920 price point that we're getting from Apple. But really where 0:11:06.920 --> 0:11:10.319 the penetration needs to be felt is in the office productivity, 0:11:10.440 --> 0:11:11.120 not just sort. 0:11:11.000 --> 0:11:13.880 Of gaming and health. Is this going to be. 0:11:13.600 --> 0:11:17.840 A productivity kind of a use case? Immediately or is 0:11:17.880 --> 0:11:21.000 this ultimately just showing off that is an aspirational good 0:11:21.000 --> 0:11:23.960 and you've got it. 0:11:24.480 --> 0:11:28.480 I do think that there's an angle that is productivity related. 0:11:28.760 --> 0:11:33.040 We obviously see Microsoft to play with Olo lens but 0:11:33.120 --> 0:11:36.480 then walk away from it. So there's definitely an opportunity there, 0:11:36.600 --> 0:11:38.880 and that's why I was talking about the mark earlier 0:11:38.960 --> 0:11:42.880 that Apple is now creating that space for them in 0:11:43.040 --> 0:11:46.520 business to be taken seriously. 0:11:46.640 --> 0:11:48.479 I was looking at the history of WWDC. 0:11:48.840 --> 0:11:51.360 It wasn't called that then, but nineteen eighty three at 0:11:51.360 --> 0:11:53.600 a hotel and San Mateo was the first kind of 0:11:54.080 --> 0:11:57.120 developers conference. What does this event mean to you when 0:11:57.160 --> 0:12:00.240 you sit there in the audience, it's pre recorded, You 0:12:00.320 --> 0:12:04.520 listen to it, share with us your experiences and what 0:12:04.559 --> 0:12:05.600 you get from it. 0:12:05.640 --> 0:12:09.600 I always remember my first one, which was after the 0:12:10.040 --> 0:12:14.120 iPhone in two thousand and seven, and it was a 0:12:14.200 --> 0:12:19.000 Moscone and I came out asking if the coffee was 0:12:19.080 --> 0:12:22.520 spiked in the morning, because the buzz that you feel 0:12:23.160 --> 0:12:28.319 is honestly something that I always compare only two Nokia 0:12:28.400 --> 0:12:32.720 events I date myself yet rip back in. You know, 0:12:33.200 --> 0:12:38.800 when Nokia was the leader in smartphone business, there's nothing 0:12:38.840 --> 0:12:40.000 else quite like it. 0:12:40.840 --> 0:12:45.240 Absolutely fascinating when it comes to all things ed Nokia 0:12:45.400 --> 0:12:48.120 one old school viewpoint to be bringing. 0:12:48.200 --> 0:12:51.320 But as you said, Rip and thanks so much. 0:12:51.400 --> 0:13:00.960 Carna melanis as well, President Principal Analyst Ever Creative Strategies. 0:13:03.000 --> 0:13:05.959 Apple touching that record high today, nearing a three trillion 0:13:06.080 --> 0:13:11.160 dollar market capitalization. It's all ahead of the WWDC event 0:13:11.240 --> 0:13:13.200 that's kicking off in but an hour or so's time. 0:13:13.520 --> 0:13:15.720 Tech AI stocks, of course have been your main driver 0:13:15.800 --> 0:13:16.760 for the markets this year. 0:13:17.120 --> 0:13:18.040 Well, they continue to be. 0:13:18.320 --> 0:13:20.880 Nancy does with us CEO and financial advisor at Opus 0:13:20.880 --> 0:13:25.240 Advice First, a private wealth advisory practice of Amerorprise Financial Services. 0:13:25.559 --> 0:13:28.280 Always great having you with us, Nanci, and we sort 0:13:28.320 --> 0:13:31.480 of continue to run on fumes here or the fumes 0:13:31.520 --> 0:13:34.080 reality for you when it comes to AI or indeed 0:13:34.200 --> 0:13:37.240 big tech being a safe harbor but also a growth 0:13:37.280 --> 0:13:37.880 play as well. 0:13:39.240 --> 0:13:41.640 Yeah, well, you know, I'm always very excited about the 0:13:41.679 --> 0:13:44.920 technology sector. Even when it was tanking last year, I 0:13:45.000 --> 0:13:47.880 kept saying, how what a great opportunity it is, especially 0:13:47.920 --> 0:13:49.720 if you're in it for the longer term, of course, 0:13:50.520 --> 0:13:53.720 because the day to day swings can be a little daunting. 0:13:54.240 --> 0:13:57.199 But of course, you know, technology is the way of 0:13:57.240 --> 0:14:00.880 the world, and there's more of it coming, especially with AI, 0:14:01.160 --> 0:14:04.319 where we're going to have another transformation of our lives 0:14:04.600 --> 0:14:08.000 in the entire world. So it is very exciting. Indeed, 0:14:09.320 --> 0:14:12.400 just have to have a little bit more information. There's 0:14:12.440 --> 0:14:15.000 a lot of unknowns at this time. 0:14:15.120 --> 0:14:17.760 There are, and it means therefore for some like cities 0:14:17.800 --> 0:14:20.960 saying this has gone too far, we're likely to now 0:14:21.000 --> 0:14:24.760 see a downward trajectory perhaps. And as these AI ultificion 0:14:24.800 --> 0:14:28.920 intelligence headlines become steeped within business models, do you think 0:14:28.960 --> 0:14:32.000 we've run up too far for what ultimately gets painted 0:14:32.040 --> 0:14:34.880 as the clear picture of what AI does to these companies? 0:14:35.480 --> 0:14:38.400 Well, you know, when it comes to buying stocks, the 0:14:39.000 --> 0:14:42.920 math has to rule, and clearly the valuations. I'm sorry, 0:14:43.000 --> 0:14:45.800 the earnings are just not living up to the valuations 0:14:46.160 --> 0:14:50.720 at this time, and unfortunately that's what counts when you're 0:14:50.720 --> 0:14:54.080 buying stocks. And so, yes, there's a little bit too 0:14:54.240 --> 0:14:59.120 much excitement going on here, and that will account for 0:14:59.160 --> 0:15:02.680 a great deal of ups and downs and significant volatility. 0:15:02.720 --> 0:15:05.840 I mean, when you have eye popping returns of over 0:15:05.960 --> 0:15:09.720 one hundred percent year to date and then you look 0:15:09.760 --> 0:15:12.880 at last year and down fifty percent, those are pretty 0:15:12.880 --> 0:15:15.600 big swings, and an investor would have to have pretty 0:15:15.600 --> 0:15:18.240 strong stomach lining to be able to put up with that. 0:15:18.680 --> 0:15:21.440 I mean, I'm just looking at the forward looking the 0:15:21.480 --> 0:15:25.040 price to forward earnings on Apple currently trading it in 0:15:25.080 --> 0:15:26.400 excess of thirty times. 0:15:26.480 --> 0:15:27.680 This is a company that's going to. 0:15:27.640 --> 0:15:30.960 Post actually a decline in revenue for this fiscal year. 0:15:32.080 --> 0:15:34.880 Is though, a company that has just got that shaer 0:15:35.000 --> 0:15:35.640 market waiting. 0:15:35.680 --> 0:15:37.480 Can you fight against what have been. 0:15:37.360 --> 0:15:40.160 Sort of well, many are turning them sort of the 0:15:40.240 --> 0:15:43.960 super seven or the Magnificent seven key stocks that are 0:15:43.960 --> 0:15:45.760 just driven the upperformance. 0:15:45.200 --> 0:15:46.920 Across the S and p AN and DY the course 0:15:46.960 --> 0:15:48.080 the NASDAI this year. 0:15:49.280 --> 0:15:51.480 Well, we're still in the business of meeting clients' long 0:15:51.560 --> 0:15:53.560 term goals, so we tend to take a little more 0:15:53.600 --> 0:15:58.360 prudent approach and maybe buy companies there engage in AI 0:15:59.080 --> 0:16:02.680 and all of the ex but not necessarily depends solely 0:16:02.760 --> 0:16:05.520 on that revenue. They have to be more diversified and 0:16:05.560 --> 0:16:07.280 have earnings and revenue from. 0:16:07.200 --> 0:16:08.480 Other sources as well. 0:16:08.720 --> 0:16:11.480 I think that's probably the most prudent way to enter 0:16:11.600 --> 0:16:15.720 this arena. But for the most part, we're going to 0:16:15.720 --> 0:16:18.800 be a bit more weight and see because we still 0:16:19.040 --> 0:16:20.920 quite frankly, don't know the good, the bad and the 0:16:21.000 --> 0:16:23.800 ugly of what AI has to give to us or 0:16:23.880 --> 0:16:26.080 bring to us in the next few years. 0:16:26.200 --> 0:16:28.520 I'm therefore the good, the bad, the ugly when it 0:16:28.520 --> 0:16:31.120 comes to macro picture as well. Today we see services 0:16:31.160 --> 0:16:34.240 weakening overall. We're worried about whether the Federals of Pike's 0:16:34.240 --> 0:16:36.760 interest rates further actually is forced to start cutting them. 0:16:36.920 --> 0:16:40.840 How does that guide you as to whether technology is 0:16:40.880 --> 0:16:42.120 a sector as a place you want. 0:16:42.040 --> 0:16:42.280 To be. 0:16:43.720 --> 0:16:44.000 Well. 0:16:44.240 --> 0:16:47.120 I do believe that the Fed will pause, just as 0:16:47.440 --> 0:16:50.840 mister Powell indicated, and I don't believe there will be 0:16:50.880 --> 0:16:53.960 any rate cuts at least not anytime soon and certainly 0:16:54.000 --> 0:16:57.240 not this year. The technology is a sector that is 0:16:57.280 --> 0:17:00.479 here to stay. I mean, this is clearly something that 0:17:00.520 --> 0:17:03.800 we live with and is involved in every aspect. 0:17:03.400 --> 0:17:04.120 Of our lives. 0:17:04.440 --> 0:17:07.280 So it's not going anywhere, and in fact it's going 0:17:07.320 --> 0:17:12.359 to evolve even more and faster. So it certainly is 0:17:12.640 --> 0:17:17.320 the longer term outlook. But again, longer term is the emphasis, 0:17:17.680 --> 0:17:21.960 because the day to day swings can be extremely volatile 0:17:22.440 --> 0:17:24.879 and it's not for the faint at heart. You do 0:17:25.040 --> 0:17:28.760 have to have it in a longer term perspective across usset. 0:17:28.760 --> 0:17:33.480 Are you thinking long or getting into technology stocks that 0:17:33.520 --> 0:17:35.879 of course are diversified, or is it more about the 0:17:35.920 --> 0:17:39.440 bomb market different parts of their overall capital structure. Where 0:17:39.440 --> 0:17:41.440 do you think is the right place to be allocating 0:17:41.440 --> 0:17:42.000 at this moment? 0:17:42.920 --> 0:17:46.600 Well, for the longer term, certainly technology stocks are, the 0:17:46.720 --> 0:17:51.399 entire tech sector will be terrific. However, shorter term we 0:17:51.520 --> 0:17:54.680 are taking a much more defensive approach and going on 0:17:55.400 --> 0:17:59.080 the fixed income side or thee the structured note side. 0:18:00.040 --> 0:18:02.480 I think that that can create a little bit of 0:18:02.520 --> 0:18:05.199 an offset for all of that up and down, the 0:18:05.280 --> 0:18:09.760 daily up and down, and the crazes and then the downfalls. 0:18:10.520 --> 0:18:13.720 And to that point, this is a global narrative. 0:18:13.920 --> 0:18:17.240 We've seen AI sort of take wind, whether it's in 0:18:17.359 --> 0:18:19.320 Asian names or whether it's being traded here in the 0:18:19.359 --> 0:18:22.040 United States, even some European ship stocks getting caught up 0:18:22.040 --> 0:18:25.800 in it. But do you allocate primarily to the United States, Nancy? 0:18:25.880 --> 0:18:28.040 Do you think about diversification globally. 0:18:29.359 --> 0:18:32.080 At this time? We have stuck mostly with US. 0:18:32.640 --> 0:18:35.720 We have not ventured into outside of the US too 0:18:35.800 --> 0:18:40.040 much as of yet. I don't believe the valuations there 0:18:40.320 --> 0:18:45.280 are going to be as profitable as US. There's many, 0:18:45.320 --> 0:18:48.399 many more problems outside the US than what we have here. 0:18:48.920 --> 0:18:52.800 And also the currency exchange plays a very big part 0:18:52.840 --> 0:18:56.240 of it still unfortunately, and when the dollar is still 0:18:56.280 --> 0:19:01.080 this strong, it's very hard to bring alpha into the 0:19:01.440 --> 0:19:02.879 portfolio of investors. 0:19:03.040 --> 0:19:05.080 How many of your private wealth clients are still interested 0:19:05.119 --> 0:19:05.600 in crypto? 0:19:06.960 --> 0:19:09.840 Well, all of them are? They all are. 0:19:10.119 --> 0:19:12.960 They all ask questions about it, But I'm fascinated by 0:19:13.240 --> 0:19:14.720 how little they actually. 0:19:14.359 --> 0:19:15.640 Know about it. 0:19:15.400 --> 0:19:21.480 It's fascinating, and I think every new craze or every 0:19:21.520 --> 0:19:27.640 new headline jujuor really indicates how little people actually know 0:19:28.000 --> 0:19:32.280 about what everybody's jumping into. And then that's pretty fearful, 0:19:32.400 --> 0:19:34.520 in my opinion, we have to be very fearful when 0:19:34.560 --> 0:19:35.160 that happens. 0:19:35.440 --> 0:19:37.840 Nancying great test in time with the Nazi David of 0:19:37.840 --> 0:19:38.760 America Price. 0:19:38.720 --> 0:19:39.200 We thank you me. 0:19:39.240 --> 0:19:41.480 While coming up, look, we're going to be discussing steps 0:19:41.520 --> 0:19:44.040 of Microsoft is currently taking to get through at sixty 0:19:44.080 --> 0:19:47.320 nine billion dollar takeover of Activision Blizzard as in Talking Tech. 0:19:47.560 --> 0:19:49.280 But we just talked about it with Nancy. Let's get 0:19:49.280 --> 0:19:51.600 back to it. Crypto. What don't we know? What do 0:19:51.640 --> 0:19:51.879 we know? 0:19:51.960 --> 0:19:54.200 What we do understand that the US sec is filing 0:19:54.280 --> 0:19:57.359 charges against finance. That's certainly leading perhaps some of the 0:19:57.400 --> 0:20:01.720 negative feeling and sentiment around the OG today. We're currently 0:20:01.760 --> 0:20:04.160 off by five and almost quarter of percent, let's call 0:20:04.200 --> 0:20:06.760 it for bitcoin. At the moment, Wall Street's main regulator 0:20:06.760 --> 0:20:10.160 accusing Binance An Indy its chief executive officer, that's cz 0:20:10.560 --> 0:20:13.800 of breaking US securities rules. It's a major escalation in 0:20:13.800 --> 0:20:16.320