Michael Nadeau

But you always have this introduction of a new technology that really captures people's attention.

And there's usually broad acceptance that this thing is real.

And we start to see a narrative start to form around how this is going to impact

The future of business, the future of productivity, the future of efficiency, new business models, you know, different disruptions to various sectors of the economy.

And so this starts to get baked into the sort of the psychology of the market, the narratives within the market.

And if you start to see some interesting growth behind that narrative, which we are absolutely seeing on AI, we've seen the new models that are coming out.

Each one is stronger than the last one.

The earnings of some of these companies, we've seen Anthropic reporting just the growth in revenues that they've seen.

So now, you know, this sort of narrative that's already gotten kind of baked in.

is now being validated by growth and the numbers.

So now you have sort of this reflexive movement on top of that.

I think we're in that phase of this right now.

At some point, typically, you get the valuation detachment, and that's when maybe things start to get a little bit more wobbly.

We're going to get into some of what's happening with the data out there.

What's interesting right now is there's a big discussion around

these growth figures and analysts are reporting, you know, forward growth is continuing to tick up for Q1, 27% earnings growth, which is just an incredible, incredible number.

When you factor that into the price of the assets, the price of the assets can be rising very fast, which they are.

But if your earnings growth is rising in line with that, then the PE ratios aren't blowing out the way, you know, you might expect and investors can sort of

You know, kind of validate a bull thesis, even when, you know, valuations are really high.

So we're seeing some of that start to play out.