Joe Rennison

And so whether that's a question of independence or lack of independence, if the policy fits the market, then the market will be okay.

Yeah.

It is, but we're at the very early days of that right now.

The labor market is still, by historical measures, very, very strong.

Unemployment is still very, very low.

The Fed is sensing or seeing in the data some turn in that strength.

We are starting to see unemployment tick up slightly.

We are starting to see the number of jobs added sort of slowing down.

And so they're trying to get ahead of this before the labor market actually buckles and cracks and we get to that point.

Yeah, sure.

So I think it's good that we're coming to this point now because there is a really big driving force in the market right now, and that's artificial intelligence.

The enthusiasm over the sort of transformational potential of AI is driving the stock market through the roof because the biggest companies that stand to benefit from AI adoption are listed in the US.

These companies have grown astronomically over the past sort of four years or so, and they have become these behemoths in the market.

You have the Magnificent Seven, which is a name given to a group of seven stocks.

It includes Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla.

Those seven companies now are more than a third of the S&P 500.

Right?

So there's 500 companies.

Seven of them are dictating a third of the price.

So if you get a 2% rise in NVIDIA one day, it's really hard for the S&P 500 to be down.