Financial Analyst (2:37)

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Market Expert (3:19)

Is everything overvalued and why is everything falling? Things are falling because they're coming back to the prices where they should be. I'll, I'll get into it later, but this is going to be the third year that we had more than 20 return in the market three years in a row. Shot. You brought this up last year, right? The last time that happened was in the.com era. 98, 99, 2000. People are front running the gains because they know a corrective measure will be taken sometime next year in 2028. This is why Sam is trying to clean up his image and his kerfuffle that he had last week with Brad Gerstner. So that IPO exit will be okay. But there's been a lot of overvaluation and over hyped talk about AI because everyone is trying to squeeze in the gains they need in to get them through the next two or three years for the downturn that we're going to have. So are we overvalued?

Financial Analyst (4:30)

Yes.

Market Expert (4:32)

We'll talk about Peter Till and Nvidia and all in a second. But the market has run up a lot and it's just correcting to where it should be and people are panicking and most people are panicking because they bought at levels where they shouldn't be buying. Bitcoin, Nvidia, Oracle, Oscar, Health, everything was bought at 2 however price palantir as well. And when the front running ends, people begin to take profits. And as Rashad, I love when you always say there's nothing wrong with taking profit but when you see Buffett start to ease into Google for the first time in history on the exit, Apple and Google are going to be the new bonds. Apple is projected to give 26 to 30 return over the next five years. It's 5 to 6% a year. That's the new bond market. It's a haven of safety. The market will ultimately be okay. But some of these valuations are absolutely insane. And I told you to go for the price.

Financial Analyst (5:35)

Yeah, yeah, I agree. I, I think yes, some of these companies, I see somebody in the chat put Palantir in terms of valuations. It just, I mean it is, it has run to a place where it almost feels uncomfortable. I think that the issue is that earnings has kept pace with this type of growth and at some point that has to decelerate. Right. Like we'll talk about this more in the show when we as we looking forward to Wednesday. Like when the market is priced to perfection. Right. Perfection won't be good enough. Right. So even you know this Goliath that's going to report and how it can shift the market.

Market Expert (6:15)

Yep.

Financial Analyst (6:16)

If it does well and has future, God it still might not be enough.

Market Expert (6:20)

It may not be enough.

Financial Analyst (6:21)

It still might not be enough. And that they will be dominant and the companies that are around it the the metas of the world and I know everybody is like what about meta? The metas will be fine. Microsoft will be fine. Apple will be fine. But there will be some others that.

Market Expert (6:36)

The rest of you.

Financial Analyst (6:39)

Here'S a safe way to put it right. If Nvidia sneezes, some companies will have pneumonia.

Market Expert (6:45)

Y' all will have covet 2.0 Covid 20 right.

Financial Analyst (6:49)

Like it's that type of scenario in these type of markets when all indicators are pointing to all time highs and you look at the statistics and everybody keeps bringing up the dot com bubble. I don't think a crash is imminent but I will say about the valuations have gone up pretty.

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Podcast Host (9:09)

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Market Expert (9:46)

Right now.

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Financial Analyst (10:25)

That refreshes essentially to a point where it's like, all right, we, we need to take a deeper look at it, but we'll see. I mean we thought something like this could happen this year, right? When we're talking about can earnings keep up to the valuations. It happened in 24, right? Which is why we were over 20. It's happening here and we're pacing toward another 20 year. Yeah, we'll see what happens in in 1Q26 and that's why Wednesday is so important. When you're talking about Nvidia, you're not just talking about AI, you're talking about infrastructure, you're talking about cloud. You're talking about a lot of different sectors. What that future guidance looks like into Q1, Q2 of 20, 26 will be very, very important to see how, how this next year is going to go.

Market Expert (11:12)

This reminds me of the first year shot to Kyrie. He hit the shot of a Steph. Right, Cool. You can only go into the game winner bag so often, so I think Nvidia would do well in earnings. But if the entire market is relying upon Blockbuster Earnest for one company for equal weighted S P funds to do.

Ryan Seacrest (11:33)

Well.

Market Expert (11:36)

That'S not good.

Financial Analyst (11:37)

Have we seen this before?

Market Expert (11:39)

Yep. 2022.com era we've, we've seen this a couple times. Even the max seven.

Financial Analyst (11:49)

Exactly. Because it feels like four years ago.

Market Expert (11:52)

We were just saying Apple.

Financial Analyst (11:54)

I was just. You just took the words right out of my mouth. I was like, this is how we used to talk about Apple. Like Apple fights for us and we needed to beat earnings and it's so dominant we needed to do that. And even if it's great, it's not great enough. And now people talk rotation and it's just another mag 7 that's now rotated into that spot and now it's Nvidia. And even when, when, when Teal says that he's selling out his positions, he didn't just leave the Max 7 out. He said we're gonna park it in two other Max sevens.

Market Expert (12:22)

Yeah.

Financial Analyst (12:22)

You know what I mean? And so it's just interesting to see. I, I think, like I said, I think we both are in agreement saying Nvidia is going to have a great quarter. And Jensen's kind of got ahead of it, hasn't he? Right.

Market Expert (12:32)

Yeah.

Financial Analyst (12:32)

Look, we're talking about, we're talking about 500 billion. This is. These are not numbers to sneeze at.

Market Expert (12:38)

Yeah. He want to say, I'm. I'm not there.

Financial Analyst (12:41)

Yo, don't, don't get this.

Market Expert (12:43)

Don't put me in the same category as y'. All. The other little CRM.

Financial Analyst (12:46)

Yeah, we are not the same. 500 billion is. Is different. That's more than the market cap of. Market cap of the. I think everything outside of the top 30 companies in the world, this is not the same.

Market Expert (12:58)

We got to have an honest conversation, though. Like, there shouldn't be this much. And Nvidia's my pick, my baby.

Commercial Voice (13:05)

I love it.

Market Expert (13:06)

The entire US economy and stock market cannot be relying upon one company to deliver blockbuster returns to move up the GDP and defeat China. There was Apple four years ago. And even that stress didn't allow Tim Cook to create what he needed to create fast enough because he had to weighted the world on the shoulders. Mistakes get made when not only are you leading hq, looking over product line, but then you have the president saying, hey, I really need you to hit a home run right now for me. It's Too much pressure.

Financial Analyst (13:43)

Can they do it? I mean would you rather have any other company be in this position? I feel like this is the company that if there was one that was primed to be in this position, this is it. The fact that they're doing this and they don't have China. Right. Like they don't have that market which will be part of this. We'll see a full year of Blackwell coming up. Yeah, we understand the dominance. We watched all the other hyperscalers in the Max Sevens report before them, which is very strategic on their part. I looked at the numbers, bro. Everybody's capex did not go down. Everybody's capex went up which talks about the demand and we know where they're shopping. And so if there was going to be a company, it would be this one.

Market Expert (14:27)

Nvidia will be fine. Meta will be fine. Microsoft will be fine. Google, dynasty of the ecosystem. Voltron. Right. Build community. But the rest of the market, I'm like, even if we look at Quantum and this is not my moment to say hey to beat up on these stocks. ARQQ is down 43%. IO and Q is down 39%. QMCD is down 40%. RGTI is down 46%. I'm looking at the rest of the market start to pull back 20 to 25%. For some quality companies, that's not a good sign.

Financial Analyst (15:07)

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Podcast Host (16:47)

Okay, only 10 more presents to wrap. You're almost at the finish line. But first. Ah, there, the last one. Enjoy a Coca Cola for a pause that refreshes.

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