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- On Friday, there's a
jobs number coming out.

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Do you have any predictions
on how, what that would be

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and what the market's gonna do?

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- I suspect we'll be around
in line with expectations,

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although I know that markets
are getting a little nervous

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that it could be a little hotter.

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So two caveats.

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First of all, the most important metric

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for me in the jobs report,

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and I would suspect also
for the Fed, is wage growth.

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And I expect that will
have a three handle.

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We'll still see that,
we'll see that in a a,

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a relatively good place.

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And that to me is the most
important reading for the Fed

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in terms of its contribution
to inflationary pressures.

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Number two, I don't think
whatever we get from this jobs

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report on Friday will derail the Fed from

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cutting rates in September.

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Now, I don't expect more
than 25 basis points in

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cuts, but that's okay.

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I just wanna see the start of easing

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and I don't think that
this jobs report will do

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anything to derail that.

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- Right. Yeah. Right now
there's a, a prediction

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of a hundred percent chance
of a, of a cut in September.

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So it seems like this jobs
number is just sort of something

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that will inform them,
but not change their mind.

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- But the market's always looking

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for something to worry about.

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It's a bit of a nervous Nelly.

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And so right now I think
the focus is on that

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and the potential for it to derail.

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But again, I don't
think it's gonna happen.

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- Speaking of the, the focus

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of the market last week
it was Nvidia, like,

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what's Nvidia gonna do?

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And, and their earnings
report was pretty good.

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Do you see the sentiment changing

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or shifting in any particular direction

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after they've soaked up these numbers?

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- Well, so two key takeaways.

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First of all, when stocks,
whatever the stock is,

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is has a high valuation, when
it is priced for perfection

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or near perfection, you tend

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to have greater negative reactions.

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There's a nit pickiness among investors

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when you have very high valuations

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and lofty expectations for the future.

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Having said that, there is also a concern

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around spending on AI by companies.

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I think that is one of the big fears is

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that this can't continue,
this trend can't continue.

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Having said that, what I'm seeing

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and what I'm hearing
is that most companies

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are full speed ahead on
their spending on ai.

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They see that as very important

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and they're also of the belief

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that it is providing other
benefits that they are, are,

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you know, for lack of a better term,

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modernizing in many ways as
a result of their AI spent.

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And so they're willing to do it,

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and I think we'll continue to do it.

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Will every dollar have a really high OI?

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No, but I don't think
that's gonna stop companies

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because they see the
risks of not investing

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as greater than the risks of investing.

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- So everybody's spending,

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and that's okay according
to the market and right now.

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But at some point I think
some of these companies might,

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might strike gold, but other
others might hit a dead end

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and people would freak out.

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But we just don't know right now.

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- We don't. And again, what
we're hearing is that the kinds

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of investment they're
making into technology

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are helpful to their business.

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So even if they don't see

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as much benefit from AI in general

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and the uses for their
particular businesses in general,

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they're positive on the
impact of that spend.

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And I don't think that's
gonna change much.

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Yes, there could come a time when,

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especially evaluations are very high

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and there's that priced
for perfection mentality

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among investors where there could be some

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punishing going on.

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But again, I I,

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and I think that this is

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generally a positive that will continue.

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I look to the 1990s

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and the spent on the internet,

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many scoffed at that.

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And I'm sure there wasn't a
high ROI on every dollar spent,

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but I certainly think
companies looked back

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and were happy they spent on it,

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and it was an important part of

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how we saw an improvement in productivity

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for the economy in general.

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- Thank you, Christina. Thank

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- You. It was great to see you.

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- Thanks for watching.
Check out more@qz.com.