00:00 Speaker A
got Google on deck tomorrow.
00:02 Will
It’s been the lag seven of late until July got back into being the Mag 7. So again, I think these are the largest companies in the world. You have to pay them respect. It’s no surprise that Apple is now challenging Nvidia as the number one market cap stock in the world. They were a little bit behind the game on AI. They’re not spending as much CapX on, they’re not per se a hyperscalar. And so I think that’s just showing you everything you need to know that the market is getting a little bit concerned about the CapX numbers and, you know, how long can that continue. But again, you have to go back to the environment that we are in today and not necessarily worry too much about what’s going to happen in two to three years from now. And right now all of that CAPEX is a good thing and until it stops being a good thing, you have to invest with the trend here, which, you know, I actually tend to like a little bit of a Mag 7 catchup trade here. It’s going to ebb and flow as we’re seeing today with the semiconductors. Um their Mag 7s trade more like software these days, which means it’s becoming a growth stock, more towards a value stock as well. And so I think it’s um they’re going to have a place in every portfolio whether you like it or not just from being invested in the markets because they’re seven of the largest companies in the world.
01:21 Speaker A
Chips were back in the green today, Will. The sell off we’ve seen there, did you see that as hey, we had parabolic runs, it got overcrowded, we had to blow off some steam or no, did you think something kind of fundamentally shifted there?
01:43 Will
I think it’s pure technical at this point. Anytime something runs 80% in 6 months like a lot of these semiconductor names, there’s going to be some type of pause, uh whether through time or price too. And so if we can trade sideways, you know, had about a 20% drawdown for a lot of these names. And you’re starting to see the turnaround today. I mean, again, it’s turnaround Tuesday. Is it going to stick? We’ll have to wait and see uh with some of the earnings reports that are coming up. But again, these are mega trends that are at place and the more money that follows these trends, the more volatility they’re going to attract just for more buyers and sellers. And so you just have to use the volatility as, you know, you take advantage of the volatility here. And so when things get frothy, maybe you peel back a little bit. and then when things look like they’ve pulled back a little bit, you see investors re-enter, which is today and yesterday could have been the first couple days of a a new trend upward.
