00:00 Speaker A
Adam, what’s the the best course of action for the average investor? Do they waste a whole day trying to find the next big play in AI or do they just say, you know what? Nvidia’s going to win this whole damn thing? I’m just going to bet on them again next year.
00:15 Adam
Yeah, I definitely wouldn’t uh just bet on Nvidia. I I think you do need to do your homework if you want to buy specific names. I think probably the general investor is probably better finding some sort of basket to kind of play the overall space. Uh but we’re very early innings in this and
00:41 Adam
obviously Nvidia is the winner right now, but uh to say, you know, in five years that we look back that they’re going to be the dominant player still, very, very unlikely. Like I said, this is really an evolving space. So I I would be careful with something that’s so specific as Nvidia. Uh we kind of like to barbell this with, you know, something like the the big hyperscaler like a like an Alphabet Google, uh because that’s really the type of name that uh you could probably have a little bit more comfort in because they just
01:14 Adam
overall, the AI story is just benefiting an already existing business model that was doing well. So, I think you would just want to be careful with what we’re calling kind of the one trick ponies, like a Nvidia, uh a Core Weve or a Patier right now.
01:31 Speaker A
Uh, Brooke, let me get over to you because I think what you’re seeing in industrial metals and some of the things that Adam’s talking about fits nicely with what we heard from Ed Yardini this morning that he might see it is likely to see we are likely to see a broadening out in this rally. Investors doing their homework, trying to get outside of the tried and true Mag 7.
01:53 Brooke
Yeah, Brian, what we did hear from Ed Danny over the weekend was really ongoing momentum in this market in 2026. He maintained that year end target for the S&P 500 of 7,700 and he said largely it won’t be really led by uh the Mag 7, but also what he called the impressive 493 of the S&P 500 as really this broadening out, this boost in productivity growth really leads to overall returns for the
02:26 Brooke
S&P 500 in 2026. Specifically, you know, he went on to say that that is really where exactly investors should be thinking about this mindset. You know, not really overweight technology, but more so thinking about the other users of AI as opposed to just the producers of AI. And so certainly he’s not alone in this uh momentum that he thinks will exist within 2026 ongoing from what we’ve seen so far in the returns in 2025.