938 is AI the new dot-com, selling winners, property post-budget + more

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What should investors consider when deciding whether to sell high‑performing satellite ETFs?

Glen James 0:06
Today on the show, we are answering your questions as per my last email. And I am coming to you live from Melbourne, not live, pre-recorded. Hey, we'll date stamp it anyway. Recording this on the 8th of September. It's coming up on the 22nd of September, joined by Owen Rask from Rask. Welcome, Owen, to your own studio. Thank you, mate. It's great to be here. Thanks for having me. Yeah, you fit right in here. Thank you. Really bizarre. So Look, couple of um housekeeping y things. We're gonna run this episode. Uh Owen's gonna top and tail it and put it up on the Australian Finance podcast. So if you like listening to Uh-huh. White guys in the middle ages with receding hair and all that. You can check out the um I've I've just shaved my head, Owen, by choice, everyone.
Glen James 0:55
Uh you can check out the Australian Finance podcast, but we're gonna get right into it. When to sell down high performing satellite ETFs. I have a few like Asia and semiconductor ETFs that have grown by more than Two hundred percent. Should I sell half, put in my core? To reduce risk. What are you like you're in this investing world?
Owen Rask 1:20
Yeah.
Glen James 1:20
Actually, I think obviously last time we talked about selling winners.
Owen Rask 1:24
I
Glen James 1:24
think
Owen Rask 1:24
we did we talked about something. Someone had a goal with eighty percent. Yeah. Yeah. And I can't remember what we said as the answer, so forgive us.
Glen James 1:31
Yeah. Buy more. No.
Owen Rask 1:33
Yeah, d go hard. It's working. Yeah. Uh I would just say like all good in good things in finance, if you have some sort of end in mind, it tends to be an easier journey for you, right?
Glen James 1:45
Yeah.
Owen Rask 1:45
So like two hundred percent that semiconductor ETF, the Asia I think when they say Asia, I think they're referring to Asia Technology Tigers, which is a the ETF from beta shares that invests in tech companies out of predominantly predominantly China. So
Glen James 2:00
maybe cause yeah, I have a few like Asia, which would be the one that you're talking about, and semiconductor.
Owen Rask 2:07
Yeah, so semic is from GlobalX.
Glen James 2:09
That's the robo advice or is there a robotic what's the robo R O B R
Owen Rask 2:13
R B T Z. There's two. There's Robo and then there's R B T Z. But um SEMI is the one that, as it sounds, invests in semiconductor stocks.
Glen James 2:23
Stonks.
Owen Rask 2:24
Stonks. Yeah. Well and if you were to say real quick answer, which one am I would would I be more concerned about having gone up so far? It would be the semi one. Mm-hmm. That has absolutely monstered it. But the reason I'd be more concerned is many of those companies, while their share prices have gone up, they are kind of earlier in their journey. And the reason they've gone up is because of the AI problematic. Whereas Asia Technology Tigers, um, it's just standard tech companies.
Glen James 2:52
But this was I mean, similar but not the turn of the century, the dot com thing, mouse could walk across a keyboard, start a website and it'd be worth millions of dollars, but it's only getting lifted because that's not to say that semiconductor and these companies are doing well, but when we have this hyper growth in sectors, it's all good until it isn't.
Owen Rask 3:13
Yeah, oh yeah. And um there's a very strong cohort of really respectable people saying that we are firmly into bubble territory right now. The one thing to keep in mind, and yeah, we like you said, mouses on keyboards and that. I think that one of the big differences is whether or not people went to pets.com like and they got paid. Basically the company of the era was pets.com as this amazing, you know, modern company. company that was literally just a URL. And if they got clicks, they got m um billions of dollars in market capitalization or valuations. That's very different to a company now like
Glen James 3:49
That's got substance. Yeah, it's actually doing something company. Yeah, it's actually doing something.
Owen Rask 3:51
Yeah, yeah. It's actually doing something. And we know that while the internet was a great thing, it ultimately became democratized through open protocols. Like the way the internet runs, no one owns the internet, so to speak. Although the US could probably shut it down. Whereas with AI, uh it is very much like you need memory, you need compute, you need electricity, you need semiconductor chips or

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