Jim Caron

So I think people have to understand that creative destruction and with all this AI stuff that's going on, effectively get used to it.

It's going to disrupt a lot of things.

The question we have to ask ourselves is, is it disrupting areas that have a lot of leverage that will then create contagion across markets?

If not, then we have to figure out ways to construct our portfolios and manage around it.

Well, I think it's really a statement on the dispersion that's in the markets right now.

So look, there's a lot of volatility that's happening, right?

We understand what's happening in the equity markets.

But then when we look at the publicly traded fixed income markets, as you're pointing out,

the risk isn't necessarily being evenly distributed across all markets.

And Tom, that's good news, okay?

Because whenever we go into these types of market events where there's a big repricing in a certain sector, in this case in software, the number one question is always about contagion.

Is there contagion into other markets?

and we're seeing firebreaks between the public markets and the private markets, and certainly equities are taking the brunt of this in some way, but we're not seeing broad-based contagion.

So I think if there's a silver lining around all of this, I think that's it.

Well, it's a great example of why you want to have a diversified portfolio, right?

So we've come off of a market over the past couple of years that's been highly concentrated.

MAG-7, MAG-7, MAG-7.

And people just forgot about the other 493, right, in the S&P 500.

And the point here is that if we get this rise in economic growth, this higher productivity, there should be a cyclical broadening of the markets.

Look at the ISM data.