Kelly Evans (Anchor) 00:00.350
and let's turn to our next guest who says whoever leads the fed next inherits a numb economy his words what does he mean by that let's bring in david harden he's CEO and chief investment officer at summit global investments a numb economy what does that mean
David Harden (CEO and Chief Investment Officer) 00:14.910
that's a great question kelly thanks for having me you know i think if you look at this last year we've had a number of shocks from the federal debt to shutdowns in the government strikes geopolitical risks and they're going to continue in twenty twenty six but we're kind of
David Harden (CEO and Chief Investment Officer) 00:27.790
numb to it no ones really doing anything the consumer is still spending unemployment still low and that's a good thing and so i think overall no matter what he chooses for this fed the reality is is i think the market march is on
Kelly Evans (Anchor) 00:42.230
in other words we can't be too shocked by whatever 's coming the the economy is kind of in a good spot the consumer is going to get a tailwind next year and you know this politicking at the top of the fed i mean it probably the bigger risk honestly that a lot of people are
Kelly Evans (Anchor) 01:00.470
worried about is maybe slightly looser on the margin and the economy doesn't need policy that's that much looser that's probably the bigger risk for the markets
David Harden (CEO and Chief Investment Officer) 01:09.110
right and it gets kind of like old news in the sense of we hear it so much we just we just are tired of it so we just moved to other things and so we look for other things to keep our attention
Kelly Evans (Anchor) 01:21.030
that being the case david how are you setting up for next year talk about being numb you know is it AI is it not the AI trade what you think about the metals i mean there's a lot of topics that are becoming you know sort of we talked about them almost constantly but you have to
Kelly Evans (Anchor) 01:36.030
still decide which of these are going to be the best stewards of capital for the next twelve months
David Harden (CEO and Chief Investment Officer) 01:40.670
well and if you look at it it might be a bifurcated year so let's just take it in a chunk of for the first six months of the year and the reality is is that earnings per share revisions for AI type of capex spending and these type of companies in tech large cap specifically has
David Harden (CEO and Chief Investment Officer) 01:56.670
been off the charts better than anywhere else and i think that continues and so even though there is some negative sayings out there and it's people worried about valuations we just talked about sixty five percent you know that's the company releasing how much nvidia is going to
David Harden (CEO and Chief Investment Officer) 02:12.950
be up so in reality i think that this continues and yeah there's going to be a little bit of volatility but i think you want to be in some of these mag sevens i think you want to be in this AI trade still yeah
Kelly Evans (Anchor) 02:24.590
and we should differentiate a little bit between one and the other because the AI trade has a basket of of outperformers whereas the mag seven has been you know there's some out performers there's some kind of in ho hum there's some laggards this year so you like microsoft you
Kelly Evans (Anchor) 02:38.310
like google you would sell or avoid tesla talk about that
David Harden (CEO and Chief Investment Officer) 02:43.830
you bet well you know the first there's a lot to like about microsoft one of my preferred mag sevens and you write it plays in both the AI a little bit and as well as the mag seven is the high quality earnings and with that AI tilt i like that google has their own things we know
David Harden (CEO and Chief Investment Officer) 02:58.870
they're exceeding on return on equity high profit margins etcetera but tesla is my least favorite and i think you're paying for a lot of volatility they've had some negative earnings per share i don't think the real AI is going to be taken advantage of here for for tesla so the
David Harden (CEO and Chief Investment Officer) 03:16.670
other thing is that i love elon musk in the sense that he's going to let us know i've always said this he's going to let us know when we need to get long tesla again and right now he's not doing that so if he's not doing that i'm not doing
Kelly Evans (Anchor) 03:27.910
that wait elaborate on that first because i love talking and debating tesla obviously people have very strong opinions about it but you have to respect the stock being back at all time highs even after he exited the white house with all the ups and downs they've had and with its
Kelly Evans (Anchor) 03:40.310
obvious we're now getting out of the mushy middle of of driverless cars to them really going mainstream and i that must benefit tesla substantially in the years ahead so why are you a little bit more cautious about it and and what are you waiting to hear from musk himself
David Harden (CEO and Chief Investment Officer) 03:53.440
so that's a great question first tesla is up today it's doing well and you're right it's hitting some all time highs i think that it's in the right space but if you look at capital and spending capital right now i'd rather be in some other AI type tech companies if i'm in that
David Harden (CEO and Chief Investment Officer) 04:06.440
space or some mag seven if i'm in that space and what i'm looking for must to say is that he's back involved and that this is the future he's always been very very good at telling us his vision and how he's going to be better than others in the same space he hasn't said that for
David Harden (CEO and Chief Investment Officer) 04:22.600
a while i'm waiting for him to say that
Kelly Evans (Anchor) 04:25.270
that's interesting because i always feel that he's out there every day with a message on X about this or that and but you know to be fair i can't think of an explicit comment he's made recently other than that i wouldn't say he's projecting a message of low confidence in the
Kelly Evans (Anchor) 04:40.430
company would you
David Harden (CEO and Chief Investment Officer) 04:41.510
absolutely not no he wouldn't put in that package for him if there was low confidence so i do agree that he's he's i don't think he understands the definition of no confidence he only has confidence but the reality is is that you have to put money to work and i think there's
David Harden (CEO and Chief Investment Officer) 04:57.470
some other bets right now that are less volatile that probably manage your risk a lot better and yet you still have exposure to tech and to growth