For me the answer was you were an experienced square. Everything in life right now is all experiential and there's nobody to celebrate the experience of trading, of investing, of the stock markets. And my man, Dan Ives of what's the name of this new company? Yorkville and Ives. You better check it out. It's unbelievable.
It was Tuckman. Oh, no. It's Yorkville.
No, it's Yorkville and Ives. Tuckman and Ives. Tuckman and no, we're not going to do that. Anyway, let's talk about this market, my dear friend. I got a broken wing.
Let's talk about the market. Let's talk about the market.
One thing I told you, you got to stop when you try to bench the 400 lb.
I knew eventually it was going to hurt your shoulder.
I was doing one-armed push-ups.
Yeah, but I think that's the problem. I think what happened was you got the statue. You started to get a lot of energy. You put a little too much weight and look what happened to your shoulder.
You know what? I just kind of like the market. Okay, so let's talk for a second here. The market has actually had it's been on a bit of a wild run. I got to go back to one thing in particular, right? This idea and you had described it to me in almost in an animation type of a way, pulling off the ladder. So, as everyone knows, the market was really sort of getting a bit scorched, right? Tech was down. People were talking about all kinds of you know, remember if you go back to Palantir last November when, you know, they had up 7 days into the earnings, traded down 9%. They called AI a bubble. Right? The catastrophists of mainstream media love to do that kind of stuff and we're here to give you the real download, right? The DL. That's the bottom line. Once again, there are some people out there in this space within the AI space and you think about this, too. They've taken the Mag 7 and tech and they've broken it down into subsectors. You've got compute, right? You've got memory. Memory, thank you. You've got software. You've got hardware.
And the hyperscalers. So, imagine that. What we used to trade as one sector is now broken down into subsectors and what that has created is this amazing rotation where you're actually getting out of one and into another and people are looking at it going, I go they're dumping all of tech, which is not what they're doing. If you look at the advance versus declines, you'll notice, even on days we're up 500, down 500, the advance versus declines are basically flat, 50/50. That means that people are not dumping the market. The buyers in the market are being really patient. The sellers in the market are basically selling in the event of buying something else. All that being said, we did see that two players in the game, AI and Anthropic, they're biggest players who are visionaries, and we've got to admit that, but they have an agenda. And what ended up happening was that they are the top guys in the ladder, okay, about ChatGPT and Claude. And so, what ended up happening was they came up with the headline read that the human being is going to be outsourced, and in 4 to 5 years, we're not going to have humans anymore. I mean, so much, you know, you want to use like an Yiddish word to describe it, it's like schmontses. What are they talking about, right? To use a historic financial Yiddish word. Explain this to me. What in God's name is going on, cuz it doesn't make any sense.
So, look, I think it's it's like a Jenga puzzle. Like, there's a lot of pieces. So, so take a step like this technology is going at a speed no one ever expected, okay? Anthropic, OpenAI, clearly way ahead of everyone. But, the reality is is that regulatory, there's really no regulatory, it's self-regulatory, okay? Like any technology, it typically goes ahead of regulatory, then regulatory curtails it a bit.
And that's I think what will happen with AI. What happened was like Dario put the essay out there, like, we got to slow down this AI rate it's getting dangerous in terms of.
And that's he's actually talking about the revolution that you've been talking about.
100% because Anthropic's one of the ones we in the AI revolution, but my whole point is regulatory capture is basically saying like, Look, I as a company want to help structure the regulatory.
And a lot of that is like, if you look where OpenAI and Anthropic are, they're at the top floor. When you're at the top floor, you pull the ladder up, no one else can get up there.
It's like a wonderful old cartoon, but go ahead. I mean, I can see it in the New York or something.
And and then if you look like Meta, Zuckerberg and Meta, the reason that stock's been on fire because they're like just like Nvidia, just like my like we're not slowing down. That model that they've come out with Muse, that's going to narrow the gap versus Anthropic and Open AI. It speaks to the point that if you slowed down in this country AI.
Right. The winner is going to be China.
Right. No, it's not even it's not even a question. It's not a debate.
And that's why I don't care if you're red, blue, your politics. The reality is is that in this country, if they slow down AI.
And that's why the market not just has shrugged it off, but the market's actually viewed it as net bullish because if Anthropic and Open AI try to put sands in the gears or whatever.
Software, remember it goes back to that SaaS-apocalypse which is a fictional narrative, software companies will narrow the gap.
Meta will narrow the gap. Right. Others will narrow the gap.
And who are those others?
Software companies, cybersecurity, CrowdStrike, Palantir, like the.
They're going to all get into that space then.
Well, when they already are, but but that's also why like tech, you're seeing the second, third, fourth derivatives of tech.
Do extremely well. And it's an important dynamic that's happening.
But it's so curious because so much of the market are listening to what these people are saying because you're coming in and you've got days where the market is Look, I said for a while I was analyzing the daily movement of the market and I was seeing that basically the days where we were up, we had beautiful momentum and there were one and two days that were on the upside that but the sell days were very shallow. There was a bid in the market, right? And the sell side was never there in any kind of a multi-day aggressive fashion, right? But now we had last this past week just when I was trying to sort of examine that whole thing, we ended up having two or three days when this narrative came out about AI being the you know, the end of the world. We had 3 days where they really hurt those stocks poorly and then what ends up happening? Boom, the whole thing flipped over and the buyers came back in.
Look, it scares people because so much of the market growth, it's CapEx. It's the data center build this. Then all of a sudden you have the political going into the midterms, data centers, the big debate going into all of these like elections.
Like data centers don't get built, that's negative for AI, you don't have capacity. So the point is is that it also feeds into the political debate.
Okay. So explain this to me. So what is the president having to say about this commentary about chat GPT and about what.
Trump administration is for innovation. We can't let out to China.
We're not going to let China beat us. That's that's it. Bottom line.
And I would say that basically mirrors the general view of the tech sector.
Where you get into the political arguments is that each state, each town has to approve data centers.
Because of data centers, electricity going up, a lot of people in those communities being like, What does it mean for me?
It goes back to the CapEx versus monetization and the impatient that a lot of those companies going, Wait a minute, I'm not seeing the payoff here.
Well, it goes back to the individual people that live in these communities where the data centers get built.
And that's why tech created a lot of that PR problem themselves by saying all the jobs are going to take away and electricity bills are going to go higher.
Exactly. That's the other side of the point.
But when things like the last few weeks happen about safety, destroying mankind.
What it does, it throws gasoline on that raging fire.
That's already a big debate.
Around AI and is it good or bad? And it's it's a dangerous precedent because if you say if you have things like Holcomb, New York, the moratorium on data centers, that becomes something that becomes a bigger thing. That becomes I think the biggest threat to AI. It's not CapEx, use cases, smart this, it's the political space halting some of the innovation.
Right. But then you So, let's think about that. So, you would think that these people who are involved in protecting, you know, the the cities and the states and whatnot are trying to do things that are for the betterment of the community. But what they're doing is they're making such short-sighted, immature almost decision-making where you We've talked about AI and building of data centers has such an amazing positive effect on the landscape if they would just hold on for 1 minute and realize that we're talking about employment, we're talking about building, we're talking about every positive thing that could come to a land. This is going to be a builder's boom and an economic boom like they've never seen before.
It'd be like us living in Kansas in 1855.
And being against the railroad.
That is going from whatever like Chicago and New York or whatever it is.
