Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
My name is John Mounts, filling in for a j team.
We're joined now by David Gyira. He is a reporter
for Bloomberg News and the co hosts of The Big
Take Daily, previously with NBC News, traveling wildly when the
United States and around the world. David, Welcome to the show.
Speaker 2 (00:14):
Glad to be here, Thank you.
Speaker 1 (00:16):
So it's we're marching into the Christmas season in earnest
now and a lot of people are taking stock of
how their investments did this past year. What's on the
horizon for twenty twenty six.
Speaker 2 (00:26):
Well, there's a lot that's coming up here. I think
a lot of people are a bit anxious here as
they look at how much enthusiasm and exuberance there's been
in just a handful of stocks. If you look at
the S and P five hundred and really seven of
them have really outperformed over the last year, and there's
so much enthusiasm and excitement. But the prospects for artificial intelligence,
so there is with that. I think some fear, John
is sort of what's going to happen here in the
months ahead If all of the investment that we've seen
(00:48):
in that handful of companies is going to pay off
in the long term. Here, a lot of capital has
been spent on building data centers and expanding that technology.
What's it going to lead to in the year twenty
twenty six, We're going to see sort of tangible changes
to the way that we work and live our lives.
I think that's a huge open question that's on the
kind of market side. On the economic side, I think
a big question has to do with sort of what's
going to happen with the Federal Reserve. And so we're
(01:09):
at a moment where as we've reported over the course
of the weekend, the President has picked his selection to
be the next Federal Reserve chair, hasn't revealed who that's
going to be yet, has given us a short list
of about five names. And sort of what role the Fed
is going to play here in the year ahead when
it comes to cutting rates, leaving rates where they are.
It's just a huge question. They have a profound effect
on the economy going forward.
Speaker 1 (01:29):
You mentioned the AI thing. I was just thinking about this,
what role in this day and age is AI taking
with picking stocks if anyone as anyone liked, I'm not
saying they just turned AI loose, but at least, you know,
employed it to kind of do a little market analysis
and kind of make better predictions and picks for maybe
at least like a mutual fund or something like that.
Speaker 2 (01:48):
It's by no means a crazy question. So I think
that we're at a point where everyone's really experimenting and
sort of seeing what this technology can do at this
stage with these large language models. And so you bring
up analysis, and I think that's where across Wall Street
seeing firms using it more and more, that is to
sort of run detail analysis of companies, how they've performed,
how they compare to their peers, and sort of doing
(02:08):
the kind of analysis that would have taken a really
long time previously. And I think it is an area
you point out rightly where I think we're seeing some
real ground being made up here and sort of a
lot of promise. Again, a lot of shops on Wall
Street are using this technology to do that kind of
sophisticated analysis of companies to identify where they see opportunity,
where they see potential for gains. I don't know that
(02:28):
they're yet kind of picking sort of what would go
into a mutual fund, but would go into a portfolio
wholly but it's certainly simplifying the work that would have
been done in the past. And I should say the
other side of that coin is, obviously there are a
lot of people on Wall Street of employed, been employed
for many years now doing that kind of work. I
think a lot of them are kind of rightly wondering
about their job prospects going forward. Here if you have
these systems in place that can do that kind of
sophisticated analysis and come up with kind of the PowerPoint
(02:51):
decks that investors would want and need, what's it going
to mean sort of for employment the investor community going forward,
I think is a huge question as well.
Speaker 1 (02:58):
It'd be interesting to see if you had a fund
let's see that's picked wholly by people you know who
has a lot of experience, and then you had a
AI to to kind of work with the same data set,
how you would see them differ in It would be
interesting to see, like how they perform against each other.
Speaker 2 (03:14):
It would be fascinating And I think it kind of
gets to something we've seen a lot on Wall Street lately,
which is, for a long time kind of investment gains
were driven by the sophistication and smarts of portfolio managers,
people who had experience on Wall Street kind of identifying companies,
picking stocks for lack of a better term, and even
before AI would kind of moved into this new world
in which a lot of that is being done driven
(03:36):
by data, driven by algorithms, and we're seeing kind of
the era of the great stock pickers starting to fade. Yes,
there are funds and there are investment houses where there
are people who have had great track records and are
very good at doing this job. But go we've gotten
to an age now where I think computers are frankly
a lot better than people are kind of surveying the landscape,
(03:57):
doing the kind of detailed analysis that can lead them
to identify when when a company is doing well or not,
or has potential to do better or not. And so
that competition that you're describing is one that has been
heating up in recent years, and I think going forward
here with the advent of AI, stands to become even
more even going.
Speaker 1 (04:12):
Forward, and David speaking going forward as we march towards Christmas,
here are there certain stocks that tend to heat up
in December with Christmas on the way, Knowing of course
that Christmas and then comes and goes. We can kind
of predict are there certain things that people invest in
and then jump out right around the holiday season.
Speaker 2 (04:29):
You know that varies year to year. But you're getting
to something which I think is important to note, which
is when you get close to Christmas, we get close
to the holidays, there often is kind of excitement on
Wall Street, and we tend to see December as a
month that does pretty well on Wall Street compared to
other ones. And it looks like we're kind of said
for that. We're seeing stocks kind of futures pointing to
a lower open today, but going into December, I think
there's the expectation that we're going to see that kind
of a good month for stocks once again. Going forward here,
(04:52):
you know, you bring up different sectors and I think
one I've been watching here on this the first of December,
or retail stocks, and this is just a huge week
for news about retail companies in particular. Of course that's
very much front and centers. We get to the holiday season,
we have people buying gifts for the holidays. I think
we have ten major retailers who are reporting earnings this week,
so we're definitely going to be watching that closely here
in the days to head the season of how they're doing,
(05:14):
of course, how they're doing with the overlay of the
Presidence trade policy and tariffs, the effect that that's happening.
I think a story over the last six to eight
months has been those companies have done a pretty remarkable
job kind of insulating the consumer from the effects those
tariffs could have. They're kind of ponying up and taking
the hit from those tariffs so far. We'll see in
the earnings reports this week and from retail sales data
(05:35):
as well, the degree to which they're going to be
able to keep doing that, if it's starting to strain them,
and if they're going to have to pass some of
those costs on to consumers here in the months ahead.
Speaker 1 (05:42):
David Gurra a reporter for Bloomberg News and co hosts
of The Big Take Daily. David, thank you so much
for joining us this morning on Alabama's Morning News.
Speaker 2 (05:49):
Thank you glad to be here.
My name is John Mounts, filling in for a j team.
We're joined now by David Gyira. He is a reporter
for Bloomberg News and the co hosts of The Big
Take Daily, previously with NBC News, traveling wildly when the
United States and around the world. David, Welcome to the show.
Speaker 2 (00:14):
Glad to be here, Thank you.
Speaker 1 (00:16):
So it's we're marching into the Christmas season in earnest
now and a lot of people are taking stock of
how their investments did this past year. What's on the
horizon for twenty twenty six.
Speaker 2 (00:26):
Well, there's a lot that's coming up here. I think
a lot of people are a bit anxious here as
they look at how much enthusiasm and exuberance there's been
in just a handful of stocks. If you look at
the S and P five hundred and really seven of
them have really outperformed over the last year, and there's
so much enthusiasm and excitement. But the prospects for artificial intelligence,
so there is with that. I think some fear, John
is sort of what's going to happen here in the
months ahead If all of the investment that we've seen
(00:48):
in that handful of companies is going to pay off
in the long term. Here, a lot of capital has
been spent on building data centers and expanding that technology.
What's it going to lead to in the year twenty
twenty six, We're going to see sort of tangible changes
to the way that we work and live our lives.
I think that's a huge open question that's on the
kind of market side. On the economic side, I think
a big question has to do with sort of what's
going to happen with the Federal Reserve. And so we're
(01:09):
at a moment where as we've reported over the course
of the weekend, the President has picked his selection to
be the next Federal Reserve chair, hasn't revealed who that's
going to be yet, has given us a short list
of about five names. And sort of what role the Fed
is going to play here in the year ahead when
it comes to cutting rates, leaving rates where they are.
It's just a huge question. They have a profound effect
on the economy going forward.
Speaker 1 (01:29):
You mentioned the AI thing. I was just thinking about this,
what role in this day and age is AI taking
with picking stocks if anyone as anyone liked, I'm not
saying they just turned AI loose, but at least, you know,
employed it to kind of do a little market analysis
and kind of make better predictions and picks for maybe
at least like a mutual fund or something like that.
Speaker 2 (01:48):
It's by no means a crazy question. So I think
that we're at a point where everyone's really experimenting and
sort of seeing what this technology can do at this
stage with these large language models. And so you bring
up analysis, and I think that's where across Wall Street
seeing firms using it more and more, that is to
sort of run detail analysis of companies, how they've performed,
how they compare to their peers, and sort of doing
(02:08):
the kind of analysis that would have taken a really
long time previously. And I think it is an area
you point out rightly where I think we're seeing some
real ground being made up here and sort of a
lot of promise. Again, a lot of shops on Wall
Street are using this technology to do that kind of
sophisticated analysis of companies to identify where they see opportunity,
where they see potential for gains. I don't know that
(02:28):
they're yet kind of picking sort of what would go
into a mutual fund, but would go into a portfolio
wholly but it's certainly simplifying the work that would have
been done in the past. And I should say the
other side of that coin is, obviously there are a
lot of people on Wall Street of employed, been employed
for many years now doing that kind of work. I
think a lot of them are kind of rightly wondering
about their job prospects going forward. Here if you have
these systems in place that can do that kind of
sophisticated analysis and come up with kind of the PowerPoint
(02:51):
decks that investors would want and need, what's it going
to mean sort of for employment the investor community going forward,
I think is a huge question as well.
Speaker 1 (02:58):
It'd be interesting to see if you had a fund
let's see that's picked wholly by people you know who
has a lot of experience, and then you had a
AI to to kind of work with the same data set,
how you would see them differ in It would be
interesting to see, like how they perform against each other.
Speaker 2 (03:14):
It would be fascinating And I think it kind of
gets to something we've seen a lot on Wall Street lately,
which is, for a long time kind of investment gains
were driven by the sophistication and smarts of portfolio managers,
people who had experience on Wall Street kind of identifying companies,
picking stocks for lack of a better term, and even
before AI would kind of moved into this new world
in which a lot of that is being done driven
(03:36):
by data, driven by algorithms, and we're seeing kind of
the era of the great stock pickers starting to fade. Yes,
there are funds and there are investment houses where there
are people who have had great track records and are
very good at doing this job. But go we've gotten
to an age now where I think computers are frankly
a lot better than people are kind of surveying the landscape,
(03:57):
doing the kind of detailed analysis that can lead them
to identify when when a company is doing well or not,
or has potential to do better or not. And so
that competition that you're describing is one that has been
heating up in recent years, and I think going forward
here with the advent of AI, stands to become even
more even going.
Speaker 1 (04:12):
Forward, and David speaking going forward as we march towards Christmas,
here are there certain stocks that tend to heat up
in December with Christmas on the way, Knowing of course
that Christmas and then comes and goes. We can kind
of predict are there certain things that people invest in
and then jump out right around the holiday season.
Speaker 2 (04:29):
You know that varies year to year. But you're getting
to something which I think is important to note, which
is when you get close to Christmas, we get close
to the holidays, there often is kind of excitement on
Wall Street, and we tend to see December as a
month that does pretty well on Wall Street compared to
other ones. And it looks like we're kind of said
for that. We're seeing stocks kind of futures pointing to
a lower open today, but going into December, I think
there's the expectation that we're going to see that kind
of a good month for stocks once again. Going forward here,
(04:52):
you know, you bring up different sectors and I think
one I've been watching here on this the first of December,
or retail stocks, and this is just a huge week
for news about retail companies in particular. Of course that's
very much front and centers. We get to the holiday season,
we have people buying gifts for the holidays. I think
we have ten major retailers who are reporting earnings this week,
so we're definitely going to be watching that closely here
in the days to head the season of how they're doing,
(05:14):
of course, how they're doing with the overlay of the
Presidence trade policy and tariffs, the effect that that's happening.
I think a story over the last six to eight
months has been those companies have done a pretty remarkable
job kind of insulating the consumer from the effects those
tariffs could have. They're kind of ponying up and taking
the hit from those tariffs so far. We'll see in
the earnings reports this week and from retail sales data
(05:35):
as well, the degree to which they're going to be
able to keep doing that, if it's starting to strain them,
and if they're going to have to pass some of
those costs on to consumers here in the months ahead.
Speaker 1 (05:42):
David Gurra a reporter for Bloomberg News and co hosts
of The Big Take Daily. David, thank you so much
for joining us this morning on Alabama's Morning News.
Speaker 2 (05:49):
Thank you glad to be here.
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