[
  {
    "i": 0,
    "speaker": "Speaker 1",
    "text": "Now a cautious rebound in Asian stocks is fading as losses in bellwether chip maker TSMC weigh on the market."
  },
  {
    "i": 1,
    "speaker": "Speaker 1",
    "text": "This comes amid renewed concerns that the AI-driven equities rally may have run too far."
  },
  {
    "i": 2,
    "speaker": "Speaker 1",
    "text": "Joining us now to discuss further is Dan Farley, State Street Investment Management executive vice president and CIO of the Investment Solutions Group."
  },
  {
    "i": 3,
    "speaker": "Speaker 1",
    "text": "Dan, good to have you on."
  },
  {
    "i": 4,
    "speaker": "Speaker 1",
    "text": "Thank you for making the time for us."
  },
  {
    "i": 5,
    "speaker": "Speaker 1",
    "text": ">> Yeah."
  },
  {
    "i": 6,
    "speaker": "Speaker 1",
    "text": ">> Let's talk about the latest from yesterday, the drop that we've been seeing across global equities."
  },
  {
    "i": 7,
    "speaker": "Speaker 1",
    "text": "Are we starting to see signs of a bubble bursting?"
  },
  {
    "i": 8,
    "speaker": "Speaker 2",
    "text": ">> I don't think so."
  },
  {
    "i": 9,
    "speaker": "Speaker 2",
    "text": "I think that's probably a bit premature in terms of where we are right now."
  },
  {
    "i": 10,
    "speaker": "Speaker 2",
    "text": "Uh you said it a few minutes ago in terms of talking about Micron, right?"
  },
  {
    "i": 11,
    "speaker": "Speaker 2",
    "text": "It was down 8%"
  },
  {
    "i": 12,
    "speaker": "Speaker 2",
    "text": "after being up 250."
  },
  {
    "i": 13,
    "speaker": "Speaker 2",
    "text": "So, I think it's important for us to recognize that these things don't go in a straight line."
  },
  {
    "i": 14,
    "speaker": "Speaker 2",
    "text": "That in general, this trend is one that we think is going to be continuing."
  },
  {
    "i": 15,
    "speaker": "Speaker 2",
    "text": "Um we're broadly supportive of equities here."
  },
  {
    "i": 16,
    "speaker": "Speaker 2",
    "text": "Uh but I think that the call for a bubble at this point is probably a bit too early."
  },
  {
    "i": 17,
    "speaker": "Speaker 2",
    "text": "Uh earnings continue to follow through on this and so we think this has uh it's a step along the way."
  },
  {
    "i": 18,
    "speaker": "Speaker 2",
    "text": "Uh obviously, we'll see what the numbers come out to with today uh and as we start to move things forward."
  },
  {
    "i": 19,
    "speaker": "Speaker 2",
    "text": "But for the most part, uh we think this rally still has room to go."
  },
  {
    "i": 20,
    "speaker": "Speaker 1",
    "text": ">> Room to go."
  },
  {
    "i": 21,
    "speaker": "Speaker 1",
    "text": "So, you think that valuation still makes sense when it comes to those numbers that we're seeing across the S&P."
  },
  {
    "i": 22,
    "speaker": "Speaker 2",
    "text": "valuations are not cheap by any measure."
  },
  {
    "i": 23,
    "speaker": "Speaker 2",
    "text": "But when you start to look at that in the context of how earnings have continued to be able to grow, it starts to say, \"Yep, they can be supported here.\""
  },
  {
    "i": 24,
    "speaker": "Speaker 2",
    "text": "I think it's interesting if you look at the returns that we've seen out of the S&P 500 for example and across multiple markets for that matter."
  },
  {
    "i": 25,
    "speaker": "Speaker 2",
    "text": "Um most of it has been earnings led."
  },
  {
    "i": 26,
    "speaker": "Speaker 2",
    "text": "You know, the fact that we have seen markets and companies' ability to continue to deliver on their earnings component."
  },
  {
    "i": 27,
    "speaker": "Speaker 2",
    "text": "We saw strong strong Q1 numbers."
  },
  {
    "i": 28,
    "speaker": "Speaker 2",
    "text": "Um we've seen strong upgrades for the rest of the year, right?"
  },
  {
    "i": 29,
    "speaker": "Speaker 2",
    "text": "And there's actually been"
  },
  {
    "i": 30,
    "speaker": "Speaker 2",
    "text": "price multiple contraction in many markets."
  },
  {
    "i": 31,
    "speaker": "Speaker 2",
    "text": "I think that's actually a healthy environment."
  },
  {
    "i": 32,
    "speaker": "Speaker 2",
    "text": "If we'd seen the inverse, where earnings were going down but multiples were expanding, that might get me a bit more concerned about your bubble question."
  },
  {
    "i": 33,
    "speaker": "Speaker 1",
    "text": ">> So, we're talking about semiconductors."
  },
  {
    "i": 34,
    "speaker": "Speaker 1",
    "text": "The SOX index is gaining as much as 100% this year."
  },
  {
    "i": 35,
    "speaker": "Speaker 1",
    "text": "It saw some declines yesterday, and you say there's more room to grow when it comes to this AI rally."
  },
  {
    "i": 36,
    "speaker": "Speaker 1",
    "text": "So, where are the risks coming from?"
  },
  {
    "i": 37,
    "speaker": "Speaker 1",
    "text": "What are What are the risks for you?"
  },
  {
    "i": 38,
    "speaker": "Speaker 2",
    "text": ">> Yeah, I think that the I mean, obviously it's the earnings piece is that we're all talked about."
  },
  {
    "i": 39,
    "speaker": "Speaker 2",
    "text": "That's what we're all worried about in terms of where we're seeing this volatility that's coming"
  },
  {
    "i": 40,
    "speaker": "Speaker 2",
    "text": "through."
  },
  {
    "i": 41,
    "speaker": "Speaker 2",
    "text": "So, to the extent that these companies are not delivering on that, I think that's one big one."
  },
  {
    "i": 42,
    "speaker": "Speaker 2",
    "text": "I think the other outside of the industry is going to be around things like rates."
  },
  {
    "i": 43,
    "speaker": "Speaker 2",
    "text": "Um, to the extent and this is this is true in semis, but this I think this is true in the market broadly speaking."
  },
  {
    "i": 44,
    "speaker": "Speaker 2",
    "text": "Uh, you know, we're not priced for a 5% US 10-year."
  },
  {
    "i": 45,
    "speaker": "Speaker 2",
    "text": "And I'm not suggesting [clears throat] we're going there anytime soon, but if it were were we to see a big move up in rates, I think that that would cause a bit of a repricing across the board, and obviously given the the movements that we've seen in AI, they're probably more vulnerable than most."
  }
]