Let's bring in the one and only Phil Rosen.
He is the chief market strategist at Pro Cap Financial for his take on today's tape and much more.
My man Phil Rosen Tuesday here on the show.
Thank you for being here as always.
Thank you for having me.
So I mean more broadly, we woke up today, tech sell-off, not just here in the US, but I love my conversations with you among many other things.
You always track what's going on overseas.
What do we see in South Korea this morning?
I have loved South Korea for several years now, and today was really the first meaningful pullback.
We saw a couple of trading pauses because they dropped 10. percent in the Korean stock market and to me that is the indication that the global AI bull market is starting to get a little frothy.
People are getting a little jittery.
There's a lot of fears of Fed rate hikes before the end of the year.
I don't think that's going to happen, but that's what a lot of the investors and markets are looking to.
But to me, the tech trade today pulling back a little bit.
You saw the Dow almost finish positive, and you saw all the defensive names actually go up on the day.
Walmart, Procter, and Gamble, Johnson and Johnson, Verizon, all these names that people go to in times of peril.
So the stadium is not necessarily clearing out in the market.
People are just switching seats right now.
So to me it's a very healthy pullback in a resilient bull market.
So let's look at some of these Dow names.
These are the blue chip, the 30 Dow stocks, the household names you and I know and love.
We spend our money on them every day.
Here are your leaders today, Phil Rosen, IBM, Merck, J&J, Travelers, Verizon, P&G, Walmart, Sherwin Williams.
You talked to.
You talk risk off.
What does that type of rotation tell you for a market that really has been ripping at all-time highs, and from time to time we're reminded of a little bit of a pause.
There's nothing wrong if the market rotates into other corners of the market, especially when these are corners that typically go up in any economic scenario.
So if you see defensive consumer staples starting to pick up, that doesn't mean the end of a bull market.
I've seen people call the top today and say, look, Alan Greenspan passed away, and that was the top of the bull market.
I think that's a bunch of.
Baloney.
Tech has plenty of room to run.
A is not slowing down just because South Korea is slowing down.
And look, I'm very optimistic and maybe that's a big issue of mine, but I don't see a reason to change that today.
Yes, of course, and we honor the life and legacy of the late great Alan Greenspan.
Everyone on Wall Street has been saying lots of great things about the former Fed chairman yesterday and today.
This is a great note of yours.
Google losing two important AI researchers.
What is the key context of that story that I heard first from you, Phil Rosen?
Everyone is leaving their current companies to go to anthropic or open AI.
That's been happening for over a year.
They got the best frontier models and they got the smartest AI researchers.
I don't know why this spooked markets so much, and maybe I'm just latching onto the wrong thing as to why Google went down the other day.
But Google is a monster of a company.
There's no way that a couple of scientists leaving is really going to change the evaluation long term on a day to day.
Sure, maybe it did, and that's what we saw.
Gemini is still the 3rd, if not 2nd best AI model we have.
And if they're losing all their AI talent and Gemini is still up there, 2 or 3, I don't know why people got so spooked by that.
Google to me is one of my favorite stocks long term.
I'm very long Google, and there's no way that A couple headcount shifts are going to change the evaluation.
Yes, maybe a little bit of a knee jerk overreaction from one of the Mag 7 giants, the great Phil Rosen, chief market strategist at Pro Cap Financial, my man, you know, you don't need me to tell you.
You've got an open invite here on the broadcast anytime.
Nice to see you.
Thank you for having me.
We'll do it again soon.
