Mark Lister: Investment Director on persisting nervousness in the stock markets despite Nvidia record results

There have been no signs of easing anxiety in the stock markets despite record Nvidia results. 

Investment director for Craigs Investment Partners Mark Lister told Heather du Plessis-Allan that the apprehension is a result of not wanting to overestimate the appropriate levels of optimism.

"It's more of a case of a healthy pullback, a healthy correction rather than something that's going to develop into anything more sinister," he said.

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Episode Transcript

Speaker 1 (00:00):
Now, there are no signs that the nervousness and the
stock markets is easy. And even after in Vidio's record results,
the Nasdaq, the SMP five hundred, and the Dow Jones
have all closed down well this morning, all closed out,
closed well down this morning. Rather, the NASDAK dropped two
point two percent. Other markets have followed suit. The Aussie
suffered losses, The INS and X was pretty flat. Mark
Lister is the investment director for Craig's Investment Partners and

(00:20):
with US Hey.

Speaker 2 (00:20):
Mark evening, heither here you're going.

Speaker 1 (00:23):
Well, thank you? What sparked this?

Speaker 2 (00:26):
I think it is just nervousness about valuations across some
of those more high octane parts of the US markets,
the tech stocks, the AI market darlings. They've all had
a fantastic run, and we know that it's a really
exciting theme that we're seeing come in behind. But at
some point valuations do get to the point where investors

(00:47):
start to get a little bit nervous and people are
wondering whether maybe too much optimism is priced in right now?

Speaker 1 (00:53):
Do you think that the jitters around AI stocks is founded?

Speaker 2 (00:58):
Ah? Yes, and no. Look I don't think that we
should be worried like we were twenty five years ago
with the dot com bubble valuations, and know we're near
at the levels they were back then, and you are
actually seeing really strong earnings growth come through for many
of these businesses, and the Nvidia result is a perfect
example of that. But that doesn't mean that things haven't

(01:20):
maybe run a little bit too far in the short term.
So I think it is wise to be a little
bit cautious and just be aware of those sorts of
valuation risks. But I don't think we're heading for another
major bear market or a recession or anything like that ahead.

Speaker 1 (01:36):
I mean, are you off the view because I hear
some people say this, you're not going to know where,
You're not going to see it coming. So if this
is the thing that you're worried about, it almost certainly
isn't this.

Speaker 2 (01:46):
Yeah, yeah, that's right. But when we look at valuations,
when we look at earnings relative to prices and so forth,
we know we near where we were in ninety nine
or two thousand and two thousand and one. You're actually
seeing a bit of substance behind. So there are elements
of the market that have maybe run a bit too hard.
Some of those unprofitable tech stocks or crypto, you know

(02:09):
that scenario that's getting hit pretty hard. But by and large,
you know the Microsoft's, the Apples, the nvideos, there's still
the best companies in the world, earning exceptionally good profits,
strong margins, doing everything expect them, we expect them to.
So for me, it's more of a case of, you know,
a healthy pullback, a healthy correction, rather than something that's

(02:33):
going to develop into anything more sinister.

Speaker 1 (02:36):
I actually was going to ask you about the crypto
what's going on with the bitcoin and the other cryptos,
because the connection to the AI stocks is not obvious
to me. What is it?

Speaker 2 (02:43):
Well, I think crypto is just an asset that does
really well. It's a supercharged version of everything else for
lack of a better better description. And when markets are
going well, crypto does really well. And when you get
a sell off, it tends to fall more heavily than
most other So the S and P five hundred is
down about five percent, the tech sector is down about

(03:05):
ten percent. Bitcoin is down about thirty percent. So if
you're in crypto then you should be used to this
because it's not unusual. You look back over the last
five years, ten years, numerous times we've seen bitcoin cut
in half. So I think if that's you, if that's
your game, if that's the asset that you're exposed to,

(03:26):
you should really be expecting this roller coaster. And those
sorts of assets will always be much more sensitive to sentiment,
market movements, liquidity than some of these more stable assets.

Speaker 1 (03:42):
Mark, thank you very much, really appreciate and enjoy your weekend.
That's Mark listened, investment director for Craig and Craig's Investment Partners.

Speaker 2 (03:48):
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Speaker 1 (03:51):
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