00:00 Speaker A
Now that investors have completed the trading day, it’s time to take a broader look at the market. Take Thomas Martin.
00:05 Speaker A
Senior Portfolio Manager at Globalt Investments. Thomas, nice to see you as always. Thomas, we often ask strategists and investors on this show why that’s okay, which is more important, AI or the Fed?
00:20 Speaker A
And now we’re talking about what’s more important. AI or geopolitics? And I’m curious what you think about that.
00:27 thomas martin
And in any case, we clearly think, um, this is earnings season for the market, earnings are more important. And the reason why this earnings season is so important is because it prioritizes other considerations that are very important, um, the expected growth both this quarter and the next two or three quarters after this, um, this year and into 2027.
00:54 thomas martin
When you’re talking about mid-teens growth, we’ve had very high revenue growth over the past few years and that’s going to continue next year, and that’s being driven by AI. Well, that’s obviously the most important thing right now.
1:11 Speaker A
Thomas, I agree with you on the bottom line. Well, it’s one of the most impressive earnings seasons I can remember. It’s just wild. Thomas, are you at all concerned about their course?
1:26 thomas martin
Yes, corporate performance is getting tougher. And I think the analysts calculated the numbers with that in mind. It was low this quarter, and frankly it’s been low for a while. I mean, they always are. These companies are winning, but it’s a lot more than normal.
1:44 thomas martin
As you know, it all depends on the usefulness of these large language models and what they can do from the perspective of the people who use them. There’s a lot of room left for queries as well as agents.
1:56 thomas martin
Um, let’s see what kind of use cases it’s used for. Ah, but it has to happen. It has to be sustainable. People have to demand these products, and companies have to provide that capability, and that continues with everything used for microchips, racks, data centers, energy.
2:16 thomas martin
Energy, everything. Well, you know, we think there’s room for that to go away and that we can sustain this.
