WEBVTT - A Dip Worth Buying? 0:00:13.960 --> 0:00:17.200 Hello, and welcome to What Goes Up, a weekly markets podcast. 0:00:17.320 --> 0:00:19.400 My name is Mike Kriegan. I'm a senior editor at 0:00:19.400 --> 0:00:20.239 Bloomberg and. 0:00:20.200 --> 0:00:22.840 I'm Aldana Hire, Across Acid reporter with Bloomberg. 0:00:23.079 --> 0:00:25.480 And this week on the show, Well, the stock market 0:00:25.520 --> 0:00:27.680 was running at full speed in the first half of 0:00:27.680 --> 0:00:30.320 the year, then towards the end of July it seemed 0:00:30.320 --> 0:00:33.080 to well just run out of steam. And whether what 0:00:33.159 --> 0:00:36.560 we've seen since then is just normal seasonal weakness or 0:00:36.720 --> 0:00:39.800 something more serious, that's yet to be seen. But it 0:00:39.880 --> 0:00:42.279 is notable that among the hardest hit in this off 0:00:42.400 --> 0:00:45.159 patch have been some of the most popular thematic trades, 0:00:45.360 --> 0:00:49.040 from electric vehicles to travel stocks and even the darlings 0:00:49.080 --> 0:00:52.560 of the artificial intelligence world. So what can we expect 0:00:52.600 --> 0:00:55.080 for the rest of the year. Well, these themes snapped 0:00:55.120 --> 0:00:58.160 back were is there a new regime in place? We'll 0:00:58.160 --> 0:01:00.520 get into it with the co founder and chief investment 0:01:00.520 --> 0:01:02.920 officer at a company that offers some of the most 0:01:02.920 --> 0:01:06.720 well known thematic ETFs. But first of all, Donna, I 0:01:06.760 --> 0:01:09.880 have to ask, September is the worst month in the 0:01:09.880 --> 0:01:11.840 stock market? What's your show? 0:01:11.840 --> 0:01:14.800 It was October, November, December, jen that's the joke, Right. 0:01:15.600 --> 0:01:19.440 February my worst than what's your worst month personally? 0:01:19.640 --> 0:01:20.240 February. 0:01:20.360 --> 0:01:21.520 I was going to say February too. 0:01:21.680 --> 0:01:24.320 I think it's everybody's worst month. Yeah, because you're depressed 0:01:24.360 --> 0:01:26.880 by then, you know, the winter's been dragging on, you 0:01:27.040 --> 0:01:27.360 like have. 0:01:27.360 --> 0:01:31.640 Seasonal there's nothing seasonal affected this one, yes, yeah, and 0:01:31.680 --> 0:01:34.080 there's nothing like Okay, there's the Super Bowls, all right, 0:01:34.080 --> 0:01:34.880 that's a nice bright. 0:01:34.760 --> 0:01:36.760 Spot, but that's only one day and the rest of 0:01:36.800 --> 0:01:40.360 the time there's no sun. There's nothing like just so 0:01:40.520 --> 0:01:41.200 dark and depressed. 0:01:41.200 --> 0:01:43.000 All right. Well, we finally agree on one thing. 0:01:42.959 --> 0:01:46.199 On one thing. Yeah, wow, we both hate February. Yeah, 0:01:46.240 --> 0:01:49.040 we can pretend like it doesn't exist. I do want 0:01:49.040 --> 0:01:52.080 to bring our guests in. It's Sylvia Jablonski, co founder 0:01:52.080 --> 0:01:55.880 and chief investment officer at Defines ETFs. Sylvia, you've been 0:01:55.880 --> 0:01:57.600 on the show before, and I'm so happy you could 0:01:57.880 --> 0:01:59.600 join us again. Thanks so much for coming on. 0:02:00.040 --> 0:02:03.920 Thanks so much for having me. What about Valentine's Day guys? 0:02:02.840 --> 0:02:06.920 Oh no, thank you, that's fair. 0:02:07.360 --> 0:02:09.440 Okay, I mean, I guess Parts. 0:02:09.120 --> 0:02:11.760 And Stars chocolates, two little. 0:02:11.520 --> 0:02:14.240 Bright spots in a very darkened dank. 0:02:14.440 --> 0:02:16.600 We get that presence day weekend off. 0:02:17.160 --> 0:02:17.760 That's true. 0:02:17.880 --> 0:02:18.120 Fun. 0:02:18.200 --> 0:02:22.120 Everybody's like, are we all redeeming February now? But Sylvia, 0:02:22.800 --> 0:02:25.160 Mike had this great introduction of you, and you have 0:02:25.240 --> 0:02:27.480 been on the show before, but maybe just to start 0:02:27.680 --> 0:02:29.799 and just to give our audience a refresher, you can 0:02:29.840 --> 0:02:31.239 just tell us a bit about your background. 0:02:31.440 --> 0:02:34.640 Yeah. Sure. So I'm currently the CEO and CIO of 0:02:34.720 --> 0:02:37.720 Defiance CTFs, but a large part of my background has 0:02:37.840 --> 0:02:41.280 actually been in ETF. So I worked prior to Defiance, 0:02:41.400 --> 0:02:45.000 I worked at a Levern NIVERSITYTF provider called Direction ETF 0:02:45.160 --> 0:02:48.600 for a decade basically, and then out of college I 0:02:48.919 --> 0:02:51.840 worked on an equity derivatives delta on trading desk, so 0:02:52.120 --> 0:02:53.840 I sort of learned about the nuts and bolts and 0:02:53.880 --> 0:02:56.480 trading them, how to actually kind of create and build 0:02:56.480 --> 0:03:00.840 the ETFs, and then ended up working in all aspects 0:03:00.840 --> 0:03:04.560 of ETFs, whether it's educating about their product development, research, 0:03:05.000 --> 0:03:08.079 and of course I have a just general passion for markets, 0:03:08.080 --> 0:03:10.120 so kind of studying markets and figuring out how they 0:03:10.120 --> 0:03:12.119 all fit it is part of my day to day. 0:03:12.280 --> 0:03:14.920 Solbia, let's talk about that idea. You know, we have 0:03:15.000 --> 0:03:18.120 seen this soft patch in the market. It seems like, 0:03:18.400 --> 0:03:20.360 as I mentioned in the intro, some of the hot 0:03:20.440 --> 0:03:23.880 thematic ETFs are doing even worse than the market. Is 0:03:23.919 --> 0:03:26.400 there just a beta there? How do you think about 0:03:27.000 --> 0:03:32.480 how thematic ETFs, at least the defiance ETFs perform compared 0:03:32.480 --> 0:03:34.280 to the market. I mean, is it just natural to 0:03:34.320 --> 0:03:37.840 expect these themes to sort of do even better on 0:03:37.880 --> 0:03:40.119 the upside and maybe a little worse on the downside. 0:03:40.400 --> 0:03:43.800 What's the sort of your analysis of how they perform 0:03:44.320 --> 0:03:45.600 in different market cycles. 0:03:46.000 --> 0:03:49.000 Yeah, And that's actually a pretty fair way to look 0:03:49.040 --> 0:03:50.960 at it, right, You do have beta exposure, and when 0:03:50.960 --> 0:03:55.240 you think about thematic ETFs, oftentimes we're sort of, I think, 0:03:55.360 --> 0:03:57.680 moving away from thematic and we think about it more 0:03:57.760 --> 0:04:01.040 like tech growth innovator, so kind of what is the 0:04:01.520 --> 0:04:04.640 tech of the future, what is innovation for the future, 0:04:05.000 --> 0:04:07.120 And they're not so much like Kitschy themes, right, so 0:04:07.160 --> 0:04:10.960 we just think about how different sectors will morph. But 0:04:11.280 --> 0:04:13.280 it's a fair point because if you think about twenty 0:04:13.400 --> 0:04:16.360 twenty two, all of the top kind of like growth 0:04:16.400 --> 0:04:19.920 stocks and tech stocks really suffered a bear market, and 0:04:20.160 --> 0:04:23.000 our ETF suffered alongside of that. And if you think 0:04:23.040 --> 0:04:26.760 about why, I'll use like quantum ETF is a great example. 0:04:26.839 --> 0:04:32.000 So so quantum gives you access to five G artificial intelligence, supercomputing, 0:04:32.520 --> 0:04:35.919 quantum computing, right, and all of those themes. In twenty 0:04:35.960 --> 0:04:39.760 twenty two, we're just kind of non existent. Tech stocks 0:04:39.760 --> 0:04:41.840 were down, and what makes up that ETF or some 0:04:41.880 --> 0:04:45.280 of the top movers like the Apple, Google, IBM, Amazon, 0:04:45.360 --> 0:04:48.840 the video amts of the world. And then lo and behold, 0:04:48.880 --> 0:04:50.440 as you said, the first part of the year, up 0:04:50.520 --> 0:04:53.960 until July, these names sored and so ANYTF like that 0:04:54.160 --> 0:04:58.239 kind of more than sorted outperformed the NADAQ one hundred 0:04:58.279 --> 0:05:01.520 because of the same names a MD and such getting 0:05:01.520 --> 0:05:03.880 a great tail and then five G same thing. It's 0:05:03.920 --> 0:05:07.560 made up of sort of semiconductors technology. And if you 0:05:07.600 --> 0:05:10.720 think about when the market pulls back, right when you 0:05:10.760 --> 0:05:14.320 have kind of like these little bursts of panic because 0:05:14.440 --> 0:05:17.400 whatever might be service ism is too hot or whatever 0:05:17.440 --> 0:05:19.760 it is, we worry about the FED raising rates. Everyone 0:05:19.800 --> 0:05:22.000 kind of panics, sells off tech sales, off growth and 0:05:22.080 --> 0:05:25.679 goes back into cash equivalent staples and kind of the 0:05:25.720 --> 0:05:27.920 defensive types of plays. But what I think is that 0:05:27.960 --> 0:05:30.360 these are actually great opportunities, especially if you're a young 0:05:30.440 --> 0:05:34.080 person investing for the long term, these are amazing opportunities 0:05:34.120 --> 0:05:36.320 to dollar costs to average. Like That's that's how I 0:05:36.320 --> 0:05:41.480 would characterize this market this year. It's not wholly volatile 0:05:41.600 --> 0:05:44.400 where we have everybody kind of on the sidelines, like 0:05:44.400 --> 0:05:47.680 like twenty twenty two complete panic highest savings rates ever, 0:05:47.800 --> 0:05:50.720 I mean, we're still pretty pretty high, but I think 0:05:50.760 --> 0:05:52.400 this year you're starting to see some of that come 0:05:52.440 --> 0:05:54.760 off the sidelines and go into these products. So although 0:05:54.800 --> 0:05:57.520 the performance is low or is getting hurt anyway by 0:05:57.520 --> 0:06:00.160 these pullbacks, I think over time these ETFs are want 0:06:00.200 --> 0:06:02.200 to outperform and the people who kind of buy them 0:06:02.200 --> 0:06:04.280 on these pullbacks are going to be kind of very 0:06:04.279 --> 0:06:08.039 happy about that. Right. The future is technology. Every single sector, 0:06:08.160 --> 0:06:10.719 asset class depends on it. So I don't think that 0:06:10.800 --> 0:06:12.640 these techniques are going anywhere. 0:06:12.800 --> 0:06:15.920 Okay, So, Sylvia, you like investing around some of these themes, 0:06:15.960 --> 0:06:20.479 including airlines, hotels, cruise companies, the EV trade, AI and 0:06:20.560 --> 0:06:22.800 machine learning. So I'm just wondering what the reason is 0:06:22.839 --> 0:06:25.279 behind that, whether or not you're thinking about the consumer 0:06:25.320 --> 0:06:26.560 and the consumer staying strong. 0:06:26.839 --> 0:06:28.640 Yeah, that's a great point, and I think that I 0:06:28.800 --> 0:06:32.040 sort of have different reasons for the interest in different sectors. 0:06:32.040 --> 0:06:35.560 So on the travel trade, the cruises, hotels and airlines. 0:06:35.960 --> 0:06:39.120 You know, I think the big impetus there is that, yes, 0:06:39.160 --> 0:06:42.039 the consumer remains strong and resilient. They have high levels 0:06:42.040 --> 0:06:45.680 of savings, and that savings has gone essentially from spending 0:06:45.680 --> 0:06:48.240 on goods to spending on services. And there are a 0:06:48.240 --> 0:06:50.680 couple of factors here. So one is that in the 0:06:50.839 --> 0:06:53.680 early winter it's the first time that the kind of 0:06:53.680 --> 0:06:56.599 globe reopened to full travel, right, So you have the 0:06:56.600 --> 0:06:59.040 connection of the East to west back up, you have 0:06:59.160 --> 0:07:01.960 Asia to the US and Europe and kind of more 0:07:02.000 --> 0:07:05.240 global travel happening. You have business travel picking up in 0:07:05.320 --> 0:07:07.919 the spend picking up there. Cruises, some of the cruise 0:07:07.920 --> 0:07:10.640 stocks are actually up over one hundred percent year today, right, 0:07:10.680 --> 0:07:13.679 and I think we're coming off of some loan numbers 0:07:13.720 --> 0:07:16.679 because of COVID. But you know, again, the consumer seems 0:07:16.720 --> 0:07:20.200 to have shifted to spend into experiences and travel and 0:07:20.240 --> 0:07:23.520 things like this. So Norwegian has been able to up 0:07:23.560 --> 0:07:26.640 their prices and create these luxury experience same with Carnival 0:07:26.680 --> 0:07:29.360 and Royal Caribbean. It's just they've caught a massive tailment 0:07:29.440 --> 0:07:31.800 from that spent and of course hotels it fits all 0:07:31.840 --> 0:07:34.320 of it, right, So you have again people traveling it's 0:07:34.320 --> 0:07:36.120 that time of year, and then on top of that 0:07:36.160 --> 0:07:39.040 business travel, all of the people flying everywhere obviously up 0:07:39.080 --> 0:07:42.280 this stay somewhere, so you've seen some major pick up there. 0:07:42.680 --> 0:07:45.240 And then during the earning season, the CEOs have just 0:07:45.320 --> 0:07:49.200 really been super positive about current bookings, future bookings being 0:07:49.280 --> 0:07:52.040 kind of back to where they were in twenty nineteen 0:07:52.120 --> 0:07:54.840 pre pandemic. And I think that it's a sector that 0:07:55.000 --> 0:07:58.080 really has been a great short term trade in terms 0:07:58.120 --> 0:08:01.440 of why evs, I think EV's or where the puck 0:08:01.520 --> 0:08:03.840 is going. You know, you look at the growth of 0:08:03.880 --> 0:08:06.120 the EV market. It went from five percent of all 0:08:06.200 --> 0:08:09.160 vehicles sold last year to fourteen percent this year. The 0:08:09.200 --> 0:08:12.400 projected statistics of this is to kind of double in 0:08:12.440 --> 0:08:14.920 the next five years and then at some point to 0:08:14.960 --> 0:08:18.440 become a multi trillion dollar industry. So there's so many 0:08:18.440 --> 0:08:20.960 reasons for that, right you have awareness of climate and 0:08:21.000 --> 0:08:23.040 wanting to be a car but neutral these are obviously 0:08:23.080 --> 0:08:26.120 better for the environment, and have the support of governments 0:08:26.240 --> 0:08:29.840 globally around that Inflation Reduction Act, tax credits, all of 0:08:29.880 --> 0:08:32.199 these sorts of things, and then if you just look 0:08:32.200 --> 0:08:34.559 at the stats, right it's like one in three cars 0:08:34.559 --> 0:08:37.480 in China's an electric vehicle. I think it's close to 0:08:37.640 --> 0:08:40.560 sixty sixty percent of vehicles sold this year where EV's 0:08:40.559 --> 0:08:44.120 in China. In terms of Norway, it's like ninety nine percent. 0:08:44.160 --> 0:08:46.560 So these are real growth opportunities. 0:08:46.720 --> 0:08:49.160 And that's really why I like regardless of what's happening 0:08:49.160 --> 0:08:51.280 in the market today, I think that these are great 0:08:51.280 --> 0:08:59.880 allocations for the next few years. 0:09:00.000 --> 0:09:05.120 Thing Sylvia that's corresponded coincidentally with this drop in equities 0:09:05.559 --> 0:09:09.040 the last few weeks, perhaps not coincidentally, is this surgeon 0:09:09.080 --> 0:09:11.760 oil prices. And we have seen some of the airlines 0:09:11.800 --> 0:09:16.080 come out Southwest Alaska Air another who I can't remember 0:09:16.360 --> 0:09:19.000 warning about though the jet fuel prices are going to 0:09:19.000 --> 0:09:21.480 be a little bit higher than expected. How big of 0:09:21.480 --> 0:09:24.439 a threat is this oil price to that travel theme? 0:09:24.960 --> 0:09:28.040 Was the consumer strong enough to handle even higher ticket 0:09:28.080 --> 0:09:31.640 prices if airlines are forced to raise them because of energy? 0:09:31.720 --> 0:09:35.800 How are you thinking about how the energy situation, the 0:09:35.920 --> 0:09:39.079 OPEC plus supply cuts, how that all fits into the 0:09:39.400 --> 0:09:40.319 travel them. 0:09:40.280 --> 0:09:42.400 Yeah, and that's that's a great point. And obviously that 0:09:42.480 --> 0:09:45.360 can that could certainly have an input negative impact on 0:09:45.400 --> 0:09:48.240 the travel industry. But you know where where we see 0:09:48.320 --> 0:09:50.559 oil and gas prices now, I don't think is going 0:09:50.600 --> 0:09:53.959 to impact the bottom line for for airline companies. Right 0:09:54.000 --> 0:09:55.960 if they continue to rise and we do have this 0:09:56.080 --> 0:09:59.600 threat of increasing oil prices, then I do think that 0:10:00.080 --> 0:10:03.000 it could potentially hamper the returns for these companies. But 0:10:03.400 --> 0:10:05.640 I think there's sort of that sweet spot right now, 0:10:05.760 --> 0:10:08.800 like where these companies can charge higher ticket prices, the 0:10:08.840 --> 0:10:11.280 consumer can afford it, they're sort of not complaining about it. 0:10:11.480 --> 0:10:14.320 If they go a little higher, it sustainable. But yeah, 0:10:14.320 --> 0:10:16.040 it's certainly something that we would have to keep an 0:10:16.040 --> 0:10:18.280 eye on in the longer term and the shorter term, though, 0:10:18.360 --> 0:10:20.920 I think next two quarters of earnings for these companies 0:10:20.960 --> 0:10:23.000 are going to continue to remain stellar. 0:10:23.440 --> 0:10:25.760 A lot of the projections that people had for twenty 0:10:25.840 --> 0:10:30.600 twenty three, including recession and whatever other negative impacts people 0:10:30.679 --> 0:10:33.280 were thinking about on the economy, a lot of those 0:10:33.320 --> 0:10:36.800 have been pushed out and pushed further and further into 0:10:36.920 --> 0:10:40.160 the start of twenty twenty four, maybe even later. And 0:10:40.240 --> 0:10:42.439 I think one of the thoughts that's going around now 0:10:42.559 --> 0:10:44.320 is that the consumer is going to run out of 0:10:44.360 --> 0:10:47.560 steam at the start of twenty twenty four. Do you 0:10:47.679 --> 0:10:50.800 foresee the same or do you continue to see the 0:10:50.800 --> 0:10:51.880 consumer staying strong. 0:10:52.040 --> 0:10:54.640 I continue to see the consumer staying strong. I don't 0:10:54.679 --> 0:10:57.600 think anything will sort of happen that quickly. Twenty twenty 0:10:57.640 --> 0:10:59.400 four is really just a few months away. If we 0:10:59.440 --> 0:11:01.199 think about it, and if we look at the data, 0:11:01.200 --> 0:11:02.839 if we look at corporate earnings, if we look at 0:11:02.880 --> 0:11:06.080 spending data, it is unlikely to fall off of a cliff, 0:11:06.240 --> 0:11:09.079 especially because, as you said in your intro, September is 0:11:09.080 --> 0:11:11.040 you should terrible. October is a little bit rocky too, 0:11:11.080 --> 0:11:14.600 But November December tend to be positive months for the market, 0:11:14.600 --> 0:11:16.880 positive months for retail, for spending and things like this. 0:11:17.040 --> 0:11:19.280 I just don't see that happening. I think you get 0:11:19.280 --> 0:11:20.680 some tail and went from that and that kind of 0:11:21.040 --> 0:11:23.360 holds you over till next quarter. It depends on the 0:11:23.400 --> 0:11:25.240 FED and what the FED does right and how that 0:11:25.320 --> 0:11:27.960 impacts the economy. So I think that jobs are going 0:11:28.000 --> 0:11:29.760 to level off. I think part of the reason why 0:11:29.800 --> 0:11:33.439 jobs have remained strong is, you know, also because we've 0:11:33.480 --> 0:11:36.160 seen some economic expansion, we've seen some growth, we've seen 0:11:36.200 --> 0:11:39.840 some innovation and technology and things like this. Eventually that stabilizes, 0:11:39.920 --> 0:11:42.960 We just stabilize, But you know, if the FED sort 0:11:42.960 --> 0:11:46.400 of holds rates higher for longer, continues to raise rates, 0:11:46.480 --> 0:11:49.840 I do think that impacts kind of a lot of 0:11:49.840 --> 0:11:53.200 things in the market. It'll impact corporate America, It'll impact spending. 0:11:53.240 --> 0:11:55.240 We'll kind of go back to this like huge risk 0:11:55.280 --> 0:11:58.199 of recession fears and things like this. But if we 0:11:58.360 --> 0:12:00.840 kind of are at a point where we think that 0:12:01.040 --> 0:12:03.559 we're closer to the end of right hikes and potentially 0:12:03.960 --> 0:12:06.360 thinking about kind of a reduction of rates in the 0:12:06.400 --> 0:12:08.640 next year or so, you know, then I think we 0:12:09.120 --> 0:12:11.280 pulled off that soft landing and I don't expect that 0:12:11.360 --> 0:12:14.679 massive pullback to come. Of course, things have happened in 0:12:14.760 --> 0:12:17.920 the last couple of years, right, Nobody anticipated COVID, Nobody 0:12:17.920 --> 0:12:21.520 anticipated kind of like Russia and Ukraine and tensions with China. 0:12:21.559 --> 0:12:24.400 So we always have to be aware of the geopolitical events. 0:12:24.400 --> 0:12:27.000 But that aside, if the market continues holding up the 0:12:27.000 --> 0:12:29.400 way it is, corporate America continues to hold up the 0:12:29.400 --> 0:12:32.160 way it is, cutting jobs, becoming more efficient, then I 0:12:32.160 --> 0:12:34.480 think the consumer will be justified and we avoid that 0:12:34.520 --> 0:12:35.280 big recession. 0:12:35.720 --> 0:12:39.680 Yeah, Sylvia, obviously we've all kind of talked ourselves blue 0:12:39.720 --> 0:12:42.600 in the face over but AI such a big theme 0:12:42.880 --> 0:12:47.200 this year. Artificial intelligence one of your newer products QTUM, 0:12:47.440 --> 0:12:51.840 the Quantum and Artificial Intelligence ETF. What I find interesting 0:12:51.920 --> 0:12:56.120 about the ETF is that so much focus has been 0:12:56.160 --> 0:13:00.920 placed on the big megacap tech companies, you know, in Nvidia, Alphabet, 0:13:01.320 --> 0:13:04.400 the Magnificent Seven as they're called, how they are sort 0:13:04.400 --> 0:13:07.600 of at the sweet spot to be beneficiaries of the 0:13:07.760 --> 0:13:12.200 AI craze. But your ETF has some more interesting small 0:13:12.200 --> 0:13:15.520 cap companies that I don't think many people are necessarily 0:13:15.559 --> 0:13:21.560 aware of, So companies like Ion C. Brighetti Computer also innovation. 0:13:21.920 --> 0:13:23.760 I'm wondering if you could talk to us a little 0:13:23.760 --> 0:13:26.760 bit about some of the lesser known names that are 0:13:26.760 --> 0:13:29.120 held by this ETF and sort of what the thinking 0:13:29.360 --> 0:13:34.960 is about being included in this Quantum and Artificial Intelligence ETF. 0:13:35.360 --> 0:13:37.640 Yeah. Sure, I'll kind of give you the macro overview 0:13:37.640 --> 0:13:39.640 of like why the smaller name is in general, and 0:13:39.720 --> 0:13:41.960 like what kinds of things they do and why the 0:13:41.960 --> 0:13:44.520 bigger names. Right, So, when we think about themes and 0:13:44.559 --> 0:13:47.880 innovation and things like AI and machine learning, there is 0:13:47.920 --> 0:13:50.760 a lot of hype about it, right, And so when 0:13:50.760 --> 0:13:53.319 there's hype about something, but it's also coming to fruition 0:13:53.440 --> 0:13:56.160 and you're starting to see revenue as a results from this. 0:13:56.240 --> 0:13:59.120 You're starting to see the actual impact of AI and 0:13:59.160 --> 0:14:01.920 how it's being You just quickly note that AI will 0:14:02.000 --> 0:14:05.320 change every sector and kind of asset class. I think 0:14:05.360 --> 0:14:08.000 out there for example biotech, right, you can use AI 0:14:08.160 --> 0:14:10.680 for better data to create better drugs to have better 0:14:10.720 --> 0:14:14.200 results and surgeries, to power robots. If it's defense, better 0:14:14.559 --> 0:14:19.680 targets and information. If it's retail targeting more accurately what 0:14:19.760 --> 0:14:21.480 you're going to buy and purchase and you know where 0:14:21.480 --> 0:14:22.760 it should be in the store of things like that. 0:14:22.880 --> 0:14:25.520 But we can go through every sector and find the 0:14:25.560 --> 0:14:30.200 application of AI. And so the big companies that power 0:14:30.240 --> 0:14:34.480 AI are the Navidia, the AMD, the Google and Amazon 0:14:34.520 --> 0:14:36.960 companies are the companies that have money, they have budget 0:14:37.040 --> 0:14:40.000 and they're going to be immediate benefactors of this and 0:14:40.040 --> 0:14:42.360 we've seen that play out this year. And so you 0:14:42.440 --> 0:14:45.040 want them to have a big place in an ETF 0:14:45.120 --> 0:14:48.240 like this because you get quality, balance sheet stability, but 0:14:48.400 --> 0:14:51.040 with innovation, they're going to be winners and losers, right, 0:14:51.040 --> 0:14:53.040 And some of these smaller companies that you mentioned, you 0:14:53.080 --> 0:14:54.760 know why we have the smaller companies in there because 0:14:54.840 --> 0:14:57.280 you think about innovation, you don't know who the winners 0:14:57.320 --> 0:14:59.280 and the losers are going to be. So some of 0:14:59.320 --> 0:15:01.400 these smaller company these are chip companies. Some of them 0:15:01.440 --> 0:15:04.320 are like Amberella that deal with the visuals and graphics 0:15:04.400 --> 0:15:07.080 and we're getting and things like this. There are different 0:15:07.080 --> 0:15:10.400 parts of AI. There's data parsing, there's the actual chips 0:15:10.440 --> 0:15:12.400 part of it, there's a supercomputing part of it. And 0:15:12.840 --> 0:15:15.360 we believe in the whole kind of ecosystem of AI, 0:15:15.440 --> 0:15:18.000 and we think that having exposure to some of the 0:15:18.000 --> 0:15:21.400 small caps that can become major players here and eventually 0:15:21.520 --> 0:15:23.920 MNA targets, it's a good way to kind of diversify 0:15:23.960 --> 0:15:24.920 your exposure there. 0:15:25.520 --> 0:15:28.280 So a lot of attention, as Mike said, and as 0:15:28.280 --> 0:15:30.840 you just said, has been paid to Navidia and some 0:15:30.880 --> 0:15:33.280 of the other bigger ones. I spoke with Rob are 0:15:33.320 --> 0:15:36.240 Not from research Affiliates a couple days ago, and he's 0:15:36.280 --> 0:15:40.320 pointing to Navidia as being potentially in a bubble, wondering 0:15:40.360 --> 0:15:44.080 if you are looking at some of these AI companies 0:15:44.080 --> 0:15:46.160 and thinking the same that maybe potentially some of the 0:15:46.160 --> 0:15:48.280 bigger ones are overvalued at this point. 0:15:48.480 --> 0:15:50.600 I actually don't think that they're in the bubble because 0:15:50.600 --> 0:15:53.800 I think that you know that once we get past 0:15:53.960 --> 0:15:57.720 the kind of like the fat and the hype around 0:15:57.720 --> 0:16:00.760 AI and we actually see the practical appation of AI 0:16:00.840 --> 0:16:04.320 and how it's impacting top and bottom lines of major companies, 0:16:04.320 --> 0:16:07.000 I think that these companies can only grow further. And 0:16:07.040 --> 0:16:09.760 a Video, without a doubt, has set themselves to a 0:16:09.800 --> 0:16:13.120 part to be the AI provider. The only way I 0:16:13.280 --> 0:16:15.600 think that this doesn't sort of shake out for a 0:16:15.760 --> 0:16:19.480 video to continue growing is if they can't actually supply 0:16:20.160 --> 0:16:23.080 the chips that are that are needed. Justin Wong came 0:16:23.080 --> 0:16:26.560 out and gave us his view of the twenty twenty 0:16:26.600 --> 0:16:31.200 four forward looking orders and said that they're beyond kind 0:16:31.200 --> 0:16:34.320 of his expectations and well beyond what the company expected. 0:16:34.400 --> 0:16:37.080 So when you have the CEO that has actual clarity 0:16:37.160 --> 0:16:40.360 into his orders or his chips, as long as they 0:16:40.360 --> 0:16:43.200 can provide those chips, and barring any major there's so 0:16:43.280 --> 0:16:45.640 much government intervention now with chips and China and all 0:16:45.680 --> 0:16:47.320 these things, so there are things that can come up. 0:16:47.360 --> 0:16:52.120 But barring any kind of like political event, it seems 0:16:52.200 --> 0:16:55.600 that the demand will be there to justify the price 0:16:55.640 --> 0:17:14.320 and perhaps the price appreciation. In my opinion, Sylvia. 0:17:14.400 --> 0:17:18.840 One more interesting thematic ETF is the hydrogen ETF you 0:17:18.840 --> 0:17:21.240 guys offer, And if you go back, I don't know 0:17:21.280 --> 0:17:23.919 what decade or more, there was a lot of optimism 0:17:24.000 --> 0:17:27.960 that sort of vehicles would have one day be hydrogen powered. 0:17:28.040 --> 0:17:30.920 I mean, I guess there are some currently that are, 0:17:30.960 --> 0:17:34.280 but it never quite reached that goal that they had 0:17:34.560 --> 0:17:38.479 for hydrogen. Where is the growth for hydrogen hydrogen? What's 0:17:38.560 --> 0:17:41.760 in the CTF that has you excited? What sort of 0:17:41.840 --> 0:17:47.320 opportunity sets are there for the companies that are owned 0:17:47.359 --> 0:17:48.160 by the CTF. 0:17:48.320 --> 0:17:50.199 I think it goes back to the macro story of 0:17:50.240 --> 0:17:53.800 alternative energy. We have to find better ways to power things, 0:17:53.840 --> 0:17:58.199 whether it's vehicles, factories, or otherwise that are friendly to 0:17:58.240 --> 0:18:00.960 the environment. So it's not to say get rid of 0:18:00.960 --> 0:18:05.000 all fuel based cars, but EV is one way to 0:18:05.040 --> 0:18:07.840 go about it, and hydrogen fuel cell power is another 0:18:07.880 --> 0:18:09.800 way to go about it. So, although it's not super 0:18:09.840 --> 0:18:13.080 well known in the US outside of California, California is 0:18:13.080 --> 0:18:17.280 actually seeing great growth in hydrogen powered vehicles. But it 0:18:17.320 --> 0:18:21.400 is actually something that's taken shape around Europe and Japan 0:18:21.560 --> 0:18:24.200 and different places around the world. So in Japan, for example, 0:18:24.200 --> 0:18:27.240 you see you see hydrogen powered buses, you see hydrogen 0:18:27.240 --> 0:18:30.280 powered boats and ships and all sorts of vehicles and 0:18:30.320 --> 0:18:32.280 things like this, and it's starting to play out in 0:18:32.280 --> 0:18:34.719 Europe too with some of their mass transportation options. So 0:18:35.080 --> 0:18:37.840 I do think that we've seen companies like UPS and 0:18:37.960 --> 0:18:42.800 NASA and Amazon having fuel cell powered kind of like 0:18:42.840 --> 0:18:46.480 a crane machine, but all of their kind of manufacturing 0:18:46.520 --> 0:18:49.600 equipment is powered by hydrogen. And of course they have 0:18:49.640 --> 0:18:51.679 that investment in ribbon too, so you see the electric 0:18:51.760 --> 0:18:54.359 vehicle side there. So there is growth in the space. 0:18:54.440 --> 0:18:56.520 I think that we believe that there will be enough 0:18:56.560 --> 0:18:58.280 growth in the space where it will be an interesting 0:18:58.320 --> 0:19:03.440 alternative energy asset class alongside electric vehicles. But you are right, 0:19:03.520 --> 0:19:06.520 it hasn't seen necessarily that hyper growth that these have seen, 0:19:06.560 --> 0:19:08.560 so I think that that takes some time to play out. 0:19:08.960 --> 0:19:12.000 Interestingly enough, though, remaining one of our most popular ETFs, 0:19:12.000 --> 0:19:15.280 it's getting a lot of that ESG type of alternative 0:19:15.400 --> 0:19:16.520 energy investment. 0:19:17.320 --> 0:19:21.080 Well, Sylvia Jablonski of Defiance ETFs really great to hear 0:19:21.119 --> 0:19:24.120 your thoughts. Can't let you go quite yet, though. He's 0:19:24.160 --> 0:19:27.840 a contestant for our craziest thing that we saw in 0:19:27.880 --> 0:19:31.240 markets this week. Well, why do you get a started, Bildina. 0:19:31.640 --> 0:19:34.280 You probably saw this headline and you definitely thought of me. 0:19:34.880 --> 0:19:36.359 Sure, yeah, well let's hear it. 0:19:36.520 --> 0:19:40.240 Taylor Swift's Eras to Our Concert film broke AMC Entertainment's 0:19:40.280 --> 0:19:43.280 advanced ticket sales record in just three hours. 0:19:43.480 --> 0:19:43.840 Wow. 0:19:43.920 --> 0:19:46.439 So AMC announced that they're going to have like a 0:19:46.560 --> 0:19:51.640 movie film version of her concert. They sold twenty six 0:19:51.680 --> 0:19:54.240 million dollars worth of tickets on the first day, and 0:19:54.280 --> 0:19:57.719 I think the stock rose like nine or ten percent 0:19:57.840 --> 0:20:01.800 at first, and there was like so much excitement. I 0:20:01.840 --> 0:20:04.159 didn't buy an advanced ticket yet, but I will definitely 0:20:04.200 --> 0:20:04.840 go see. 0:20:04.600 --> 0:20:08.920 It's so AMC is back stock. 0:20:09.080 --> 0:20:11.280