“There was a multi-directional stream of bad news, or at least negative headlines that hit the really high-flying, AI-driven sector of the tech semiconductor chip market.” – 01:47
Tim Anderson, Managing Director at TJM Investments, joins Remy Blaire at the New York Stock Exchange to discuss the significant economic developments surrounding Federal Reserve Chair Jerome Powell’s highly anticipated speech at the Jackson Hole Economic Symposium.
Tim shares his expectations for Powell’s speech, suggesting that the Fed Chair will aim for a neutral tone while indicating that more data is needed before the upcoming September meeting. He expresses his belief that a rate cut is warranted, even advocating for a 50 basis point cut, which would mirror the decision made last September.
The conversation then shifts to the stock market, particularly focusing on the recent selloff in the tech sector, especially among AI-driven companies. Tim explains that a series of negative headlines contributed to this downturn, including comments from Citron Research labeling Palantir as overvalued and a report from MIT questioning the profitability of AI investments. He draws historical parallels to the late 1990s internet bubble, emphasizing that while some companies may be overextended, firms like Palantir are well-positioned to benefit from the ongoing AI revolution.