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  • The Nvidia Story Has Peaked, Weiss Says

The Nvidia Story Has Peaked, Weiss Says

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Bloomberg Aug 28 04:10 · 13.1k Views

Richard Weiss, American Century Investments CIO of multi-asset strategies, says he's already looking past the Nvidia earnings and says we're in the last legs of a bull market. He's on "Bloomberg The Close."

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Transcript

  • 00:00 We got to start off here with the elephant in the room, NVIDIA.
  • 00:03 It's market weight.
  • 00:04 It's just sort of influence kind of all the space it occupies in every investor's brain these days.
  • 00:10 How much are you going to pay attention to this tomorrow night?
  • 00:13 There's no question Vidya is a large part of market movements because of the
  • 00:17 representation.
  • 00:18 It is in most indices, in most people's portfolios, if they're index that is.
  • 00:24 But I think the markets moving away from that,
  • 00:26 it's broadening out.
  • 00:28 There are a lot of other elements, macro and otherwise we'll talk about.
  • 00:31 So we're not hyper focused on NVIDIA right now.
  • 00:34 That story
  • 00:36 arguably already peaking at this point, and we're looking beyond it to other sectors,
  • 00:42 to other elements of the AI story.
  • 00:44 Well, let's talk about where those elements are rich, because that has been kind of the search now.
  • 00:48 I think a lot of people are in your camp that a lot of the Jews in NVIDIA has already been squeezed.
  • 00:53 Where else do you squeeze it?
  • 00:54 Where are those companies, those sectors?
  • 00:57 Well,
  • 00:57 no question, we're still in a bull market, right?
  • 00:59 But
  • 01:00 you see the significant sector rotation we've witnessed over the last month, three months
  • 01:06 it, it's not tech and telecom per Southeast a mag 7 aside or NVIDIA side for the moment.
  • 01:11 It's
  • 01:13 financials, consumer staples, healthcare sectors and and even utilities.
  • 01:18 And what does that tell you?
  • 01:19 Are
  • 01:19 the markets broadening out and moving to the more defensive
  • 01:23 late cycle sectors
  • 01:25 preparing for what is a slowdown?
  • 01:27 So
  • 01:28 if we're in a bull market, this is the last legs of it, at least that's what the market saying right now and that's where we're looking.
  • 01:34 So the cash that remain was referring to right, $6.24 trillion in money market funds.
  • 01:39 Is that stay there then to stay defensive or does that get redeployed?
  • 01:43 Well, we would recommend you stay on the sideline a little longer, wait for
  • 01:47 perhaps a better entry point.
  • 01:50 Into equities at this point.
  • 01:51 We would not be diving into equities at this point
  • 01:54 given.
  • 01:55 And the economic deceleration I think most
  • 01:57 agree with given where the manufacturing sector is, the housing sector arguably,
  • 02:03 and the fact that,
  • 02:05 you know, Doctor Fed has to come in and give us more medication, I mean that that's not a good thing.