00:00 Speaker A
Are you worried about the South Korean market and are there implications for the US as well? Like it sounds like you’re not too worried about leverage that it’s going to cause volatility but not be a more, you know, sort of structural issue.
00:15 Speaker B
I think we have this is something new that we are all facing as market participants. I think we have to be very aware of the dynamics that are taking place, the growth of leverage in the system, and to the extent to which that can, you know, have repercussions that spread across, you know, the US markets as well.
00:40 Speaker B
I I at this juncture, it hasn’t been something that has been, uh, you know, taking the US markets down meaningfully, but it but it can, we should keep an eye. So, am I worried about it? I’m absolutely watching it.
00:54 Speaker B
When something grows from 10 billion to 200 billion over a course of a year, it is something that we should be watching. We should look at where what financing rates are. We should see when it’s easing. We should all educate ourselves on how the leverage dynamics are shifting, uh, the volatility in their markets and why.
01:17 Speaker B
Um, so this is something I am watching. At the same time, I still believe that the hardware part of the AI trade, the demand for memory, the demand for chip design is very much a structural theme. It is not a today’s trade and gone tomorrow morning.
01:36 Speaker B
Um, we just have to live with the volatility and I also believe and, you know, we’re going to be coming out with our, um, second or third quarter outlook, I guess in a couple of weeks or months. Uh, but what we’re already thinking about is where are the areas outside of AI and tech that you want to have also as a part of your portfolio to.
01:52 Speaker A
Yeah, that’s what I wanted to ask you about. Yeah.
01:53 Speaker B
And that that’s exactly what we’re seeing right now over the last sort of 10 days as we have seen um some of the tech parts of the market come under some pressure, what’s been great is seeing other large cap parts of the market, so healthcare or infrastructure, energy actually doing well.
02:14 Speaker B
So the two other durable growth themes that we’re also focusing on in addition to AI, maybe as a hedge or a diversifier in your portfolio is simply thinking about energy security and thinking about infrastructure, which can be that value part of your portfolio uh versus the growth part of your portfolio, or it can just be another durable theme that’s with us for some time.