Okay, why are you buying, James?

Yeah, I tend to agree.

I think there's a major shareholder in it, Keycorp, which owns circa 50% of it.

So it'd be some sort of joint venture there.

They took out the Abacus stake.

So Abacus had 19.6% of it.

They've sold down $1.11 was their average price.

premium for a long time

What, what, what's your feel about the AI story at the moment? And what about locally too, I guess? We've already dis- uh, discussed on the podcast, uh, over the past few weeks the debut of what could be one of the largest IPOs in Australia in a long time, and, and that of Firmus.

Firmus.Yeah, so the AI story is just beginning.

So I think you've gotta think, you know, broadly about it.

So, you know, the, the beginning of the AI story, um, uh, obviously comes with, uh, an uptick in the use of data and the uptick in the use of energy, uh, and then flows through to, you know, applications, et cetera.

So I think we all stand back here today and we, you know, you probably think that we're only gonna be using a fraction of the AI today that we'll be using in five years' time.

So I think the story is certainly one of, um, one of growth.

It was interesting last night, uh, um, Alphabet did a deal with Constellation Energy, uh, for about 890 megawatts of, uh, of energy, uranium or, uh, nuclear-based energy.

Um, so what are you telling your clients right now, and where do you see the opportunities for investors?

Just generally, what are you getting a sense of? Is it more positive than negative? And what are some of the risks and opportunities that are being discussed?

Yeah, it has been.

It's cautiously optimistic.

I mean, one of the things I'd probably highlight is a bit of in the consumer facing stock.

So there's been some mixed outcomes there.

So we had Nick Scarley report the prior week.

They reported good first half numbers, but their sales update for the first part of this year was a little bit soft.

James, last one, anything that you're particularly focused on or looking forward to next week? What's a big company that's reporting for you?

So what's your take on the US markets and on technology?

Well, there's a lot going on.

So you made mention of US banks.

They reported smashing numbers last night.

Five of the big guys, uh, reported results.

Earnings up for the quarter over 40%.

Uh, phenomenal numbers underpinned by, um, uh, really strong equity trading revenue, but also investment banking revenue.

So given everything we've just discussed, how is it all playing out for the Australian share market and on the Australian dollar?

So what's your take on the US markets and on technology?

Well, there's a lot going on.

So you made mention of US banks.

They reported smashing numbers last night.

Five of the big guys, uh, reported results.

Earnings up for the quarter over forty percent.

Uh, phenomenal numbers underpinned by, um, uh, really strong equity trading revenue, but also investment banking revenue.

So given everything we've just discussed, how is it all playing out for the Australian share market and on the Australian dollar?

Sell?

It's ...

Uh, th- yeah.

You know, CBA, no one should [laughs] ... no one goes out there and sells CBA.

I think there's, there's a couple of key points to that.

So you buy CBA for yield.

At a bit over 3%, that's not c- uh, that would be okay if it was a growing yield.

Buy, hold, or sell?

Buy, hold, or sell?

It's a buy here, but not with the same conviction I've got on PMA.

When I spoke about PMA, I suggested that it'd been sold down in because of a huge valuation compression across the sector.

I think Xero's been sold down for some legitimate reasons.

They, uh, made a large acquisition in the US with Melio, um, bought it at the wrong time, and paid too much for it.

They paid 13-odd times revenue for that business.

So when you've got this combined group, you've then gotta, uh, uh, and overlay that with the, the huge valuation rerate in software, then that's why they've fallen 70-odd percent.

I'll match you on age.

Are investors getting ahead of themselves, especially at a time where I think there's another silver ETF coming onto the market tomorrow?

Yeah, so, I mean, big calls come out after underlying assets have moved.

So you often see these big headline-grabbing numbers after things have moved.

And I'm not 100% sure where silver is going to go.

I can understand the flow of money into precious metals on the back of US dollar weakness, debasement of the US currency, concern around the longevity of the US dollar and so forth.

To me, I'm more of a contrarian investor, not following the momentum trade.

The momentum trade is clearly in precious metals.

So finally, in addition, what are you telling your clients right now in this economic environment and where do you see the opportunities for investors?

What's your take? Is it an area you're still looking at?

Yeah, I think it's really dangerous from an investor standpoint.

I've heard that continually around the overvaluation of the AI trade.

I think it's really dangerous just to buy into that sort of high level rhetoric.

I think there's probably pockets of overvaluation in that area of the market.

There always is.

There's always pockets in some areas that are overvalued where other companies are a screening on the cheaper side.

What's your take?

James, what about you? Talk to me about your key lesson or takeaway for this year that you're heading into next year with.

I think it's important, and I've learned is potentially reinforced this year, is to keep an open mind.

So it speaks to Henry's point around stocks running further than perhaps the fundamentals would suggest they should on both the up and down side.

So keeping an open mind and playing, I guess, what's in front of you.

So I think going into FY26 is going to be a whole host of new macroeconomic challenges.

I think there's going to be influences that we haven't thought of.

Obviously, what's playing out in the Middle East is front and centre at the moment.

I'm behind the times.