00:00 Speaker A
In terms of today’s market movements, Ed, you know, we’ve had higher inflation than expected that you’ve discussed. Because of this news about blocking, I think we also have to talk about the impact of AI here.
00:12 Speaker A
So they’re cutting 40% of their workforce, which just kind of fuels the fear of AI disruption. I’m just curious, Ed, what do you think about the impact of AI on the American labor market? Ed, it seems like you have two main schools of thought. I hear the voices of optimists saying, Hey, listen.
00:34 Speaker A
Paradigm shifts like this have happened before, and the Internet is a good example. We lost some jobs but created many new ones. That’s one thing. On the other hand, there are people saying, listen, get ready, uh, zombie apocalypse, millions of people unemployed, and by the way, they’re never going to be employable again. where are you?
01:04 ed
of course. On December 7th, I argued that it was time to rebalance your domestic and global portfolios, and that it was time to underweight the Grand 7. This was a pretty good decision. They’ve obviously gotten very weak since then, so I’d say just sell. I think it all started at the end of October of last year when Michael Bury started raising the question of how much capital investment is being made, what kind of return are you getting on capital investment, how are you depreciating it, how long are you depreciating GPU chips? Many very important questions were raised. II likened the Magnificent Seven to being like the Seven Kingdoms, which operate independently, have moats, and are content with a kind of independent prosperity, in Game of Thrones. And then all of a sudden, AI made them compete with each other, and we had an AI war, this kind of arms race, and it made stock market investors nervous. As a result, stock market investors have gone from AI euphoria to AI fatigue and are now in what I call AI derangement syndrome. I think that’s happening
02:30 Speaker A
What does it mean? AI Derangement Syndrome?
02:32 ed
Well, we’re going a little overboard here. I think AI on Balance is actually a huge productivity tool. Historically, productivity has always contributed to prosperity. It always leads to an increase in real wages. As a research assistant, I use AI all day long. I recently started using it to develop Uh tables. We code code without knowing what it is, but it’s very powerful. We’re more productive, so we’re not laying anyone off. Well, it’s quite the opposite. I think we’re going to give our customers better tools than we’re offering them. Overall, I think it’s going to be a good thing for a lot of companies, but right now there’s just overall fear. I don’t think it will have a negative impact on employment, and that’s what the market thinks now.
