I think all we're seeing is profit taking in the
big tech. I mean, the story for NVIDIA
we know hasn't changed. In fact, some of
the A I uh headlines in the last couple of
days just kind of confirmed this is a real trend
and we know NVIDIA is the shovels to the gold
rush. Um Eventually everyone will have a shovel but
we're nowhere close to there. So what I think
we're seeing is more market dynamics. And I think
one of the things to keep in mind is that
the surge in NVIDIA has been so fast that we
have a lot of investors who are not institutional,
you know, all the retail investors are really dealing
with tax effects here too. So I think we'll
see some of these Pullbacks sometimes at various times when
gains are hitting long term gains. You know,
a the last great time to buy NVIDIA was December
22. Um A lot of people may have been
buying into early 23. We may be starting to
see positions get into long term tax gains. So
I'm not surprised to see a little bit of trading
up and down here. I don't think it's the
start of a 20% pull back. But I think
we've seen such a move with the major tech.
It's not surprising um to see a little bit of
trading around. So this comes just two days after
NVIDIA passed Microsoft as the world's most valuable company.
So you're saying you don't even see this as being
a sort of temporary halt to its meteoric rise.
I think it certainly could be temporary. But then
Apple and Microsoft's move could be temporary as well.
They let's not forget it. They haven't matched NVIDIA
, but they've had a tremendous strength, you know
, over the past 12 months and all year to
date as well. So we do know we've got
, you know, real leadership in a small group
of tech stocks. So it's not surprising at all
to see them take a breather and we may see
them go sideways for the summer for me as a
portfolio manager. That would be the healthiest sign in
this market if I could see these stocks just consolidate
for three months straight. Um I think that would
be fantastic. That's interesting. You know, we
also this move from NVIDIA comes a day after Elon
Musk tweeted that Nvidia's partners Dell and Super microcomputer were
contributing server parts to his A I start up that
have NVIDIA chips in them and those stocks were up
today and they have also reversed course. So that's
interesting to me as Well, I mean, do
you have any thoughts on why those two also uh
went the other way? Well, super micro certainly
has had the same kind of run almost as well
and in some time frames better than NVIDIA. So
it's been the real, uh you know, it
started as a micro cap in some ways you would
say by today's standards and has had a me order
run. So I do think that it's just general
um profit taking across the tech sector. And remember
we're a few days from the end of the quarter
, I'm sure that um institutional managers are rebalancing portfolios
. I'm sure some are dressing up portfolios. So
we've always got that tension going on in the last
week or so into June 30. The S and
P and the NASDAQ have been on such a tear
lately. Um Do you would all see us uh
ready for a, a pullback? You know,
the market indices seem so strong this year, we're
asked all the time. Uh aren't we due for
a pullback? But what we look at internally is
we've really been taking it apart at, you know
, the sector level as well as the stock level
. And I'm going all the way back to the
bottom in 2022 to see what's going on and here's
what you need to keep in mind. Excuse me
, the beginning of 2022 where we have that large
decline, we have a few tech stocks that have
really soared over that time frame. But it is
incredible how many stocks in the S and P 500
something like, well over 400 are still today at
levels lower than they were before the start of 2022
. Meaning they haven't taken out that summer, 21
high before inflation kicked in. And we had this
broad pull back with rates in the market. So
if you ask me, what do I think of
a market that has essentially gone sideways for two years
? I'm not worried about that at all. I
think there are some leadership names. I think there's
reasons for some of that leadership and as we just
talked about, maybe there's some profit taking going on
there, but there's so much of the broader market
um that is perfectly healthy and I think has plenty
to catch up and still go. And that will
sort of be the second leg of this ongoing bull 00:04:24.750 --> market.