We are in a ‘BIFURCATED’ economy: Wedbush Securities chief investment strategist

ANYTIME THE WINDS A REALLY STILL IN TO THE FOURTH OF JUNE AMINO SECURITIES CHIEF INVESTMENT STRATEGIST, PAUL DIETRICH AND HOW WE ARE LOOKING AT A DECENT MARKET HERE PRICE REALLY GET THE SAME PROBLEMS AS YESTERDAY OF THE PROBLEMS TODAY I WILL AND RISING YIELDS. >> WILL YOU HAVE TO WEALTH WE ARE BIFURCATING ECONOMY AND THOSE OF US WHO TRY TO LOOK AT LONG-TERM TRENDS AND WHEN AND WHERE THEY ARE GOING AND WHEN THEY ARE PIVOTING, YOU ARE HAVING $2.3 TRILLION OVER THE NEXT THREE - FIVE YEARS, THEY INJECTED INTO THE U.S. ECONOMY WITH AI DATA CENTERS AND A HIGH BUYING. AND THAT WILL MAKE A DIFFERENCE AND EVEN AS LARGE OF AN ECONOMY AS WE HAVE HERE IN THE UNITED STATES. AND HE OTHER SIDE, IS VERY NARROW BAND OF GROWTH. AND THE REST OF THE ECONOMY IS NOT DOING SO WELL. LOOK TO THE JOBS THAT DATA TODAY, AND THERE WAS SOME CONSTRUCTION THAT REALLY THE VAST MAJORITY OF JOBS CREATED DURING HEALTHCARE. AND THAT IS SOMETHING THAT OTHER THAN HEALTHCARE AND CONSTRUCTION FOR DATA CENTERS THEM UP WERE NOT IN GOOD SHAPE IN TERMS OF THE JOBS MARKET SCHEMA FOR THE HYPER SKELETON THAT NEIL CLOUDS COME THEY ARE GOING UP 5000 MILES AN HOUR LIKE A ROCKETSHIP HAVING FORWARD DOING TO HAVE TO DEAL I CANNOT IT MENTION THE INVESTMENT BANKING FEES EVERYONE IS PAYING AT THIS POINT BUT ALSO SPINNING HAS BEEN ABSOLUTELY UNBELIEVABLE LOOK AT THE STOCK PERFORMANCES AND WE CAN PUT SOME MUSTER THE GREEN TODAY I GUESS WE COME THEY WERE IN THE RED. >> WILL I THINK THERE'S A LOT OF WORRIES PART OF IT COMES FROM CHINA AND IN CHINA SEEMS TO HAVE DEDEVELOPED YOU KNOW FRONTIER MODELS OF AI. AND THEY ARE DOING A MUCH CHEAPER THAN WE ARE DOING IT THE UNITED STATES AND WITH A LOT LESS, DATA CENTER COMPUTE WHICH IS THE TERM THEY USE. IF THEY ARE RIGHT, I THINK IT WAS MURKY CUPID WHO SAID SOME OF THE DATA CENTERS WOULD BE PICKLE BALL COURSE OVER THE NEXT TEN YEARS. [LAUGHTER] [LAUGHTER] AND IF THEY ARE RIGHT AND IF CHINA IS RIGHT, THERE ARE WORRIES. I PLACE MY BETS ON MICROSOFT AND YOU KNOW A LOT OF THE AMERICAN COMPANIES. >> THAT IS WHAT IS WORKING U.S. EQUITIES ARE STILL WORKING AND YOU TOOK ABOUT OTHER THINGS THAT ARE STILL WORKING THE S&P OF EMERGENCE REACH 15.1 PERCENT IN THIS MOST RECENT QUARTER AND THE EARNINGS ARE HOLDING UP SO WE SEE THESE COMPANIES MAKE MONEY AND HOWEVER, HOW MUCH OF THE ECONOMY AND OF GROWTH OF THE GDP NUMBER, AS YOU LOOK AT THAT, WHAT HAPPENS WHEN YOU TAKE OUT AI AND ALL OF THE INVESTMENTS IN THAT AREA. >> WILL A COUPLE OF F GREAT ECONOMIST JASON FURMAN WE HAVE DONE AN ANALYSIS HERE IF YOU TO COVER 2.3 TRILLION OVER THE NEXT THREE - FIVE YEARS, OUT OF THE GDP, WE ARE KINDA FLAT VERY LITTLE GDP GROWTH. >> TELLS WHAT WE SEE THERE SO THE ORANGES THE GDP EXCLUDING. >> EXACTLY. >> AI RELATED INVESTMENT WHICH MEANS ON THE FAR RIGHT, THAT IS THE MOST RECENT QUARTER TO GET. >> IN THE GDP IS JUST UP 710th OF A PERCENT UP TO ONE AND A HALF PERCENT. >> BUT IF YOU LOOK AT YEAR TO DATE, YOU HAVE MINUS 0.6 AND THEN, PLUS 0.3, IF YOU ARE NOT LOOKING AT JUST ONE PART OF THE BASIS, IT IS FLAT. >> AND YES, AMERICANS ARE STILL SPENDING AND CONSUMERS HOLDING UP AND SO, WHEN I CALL YOU CHICKEN LITTLE AND I SAID WELL YES AND I GET IT AND I LOOK AT THOSE NUMBERS BUT THE STOCK MARKET CONTINUES TO RISE. >> WE HAVE TO FIRST AND IF YOU LOOK AT WHAT WE ARE STILL SPENDING IN THE UNITED STATES BUT IF YOU LOOK AT HOW WE ARE SPENDING, WE ARE GOING INTO DEBT AND THE SAVINGS ARE GOING DOWN AND CREDIT CARDS ARE 21 PERCENT AVERAGE RATES. AND PEOPLE ARE MAXING OUT ON THAT COMING TO DO MEXICO COME THEY ARE GOING TO FIND BUY NOW AND PAY LATER. AND THEY ARE SHIFTING WE SAW THIS WITH WALMART FIGURES EARNINGS FIGURES AND THEY ARE SHIFTING THEIR SPENDING AND HAVING TO SPEND MORE ON OIL AND GASOLINE AND DIESEL AND SO WE REALLY SEE A SHIFT IN CONSUMER SPENDING EVEN THOUGH THE RETAIL SALES HELD UP. >> WELL THREE INTERESTING TURNING TO GET SO CAUGHT UP IN DUE DATE TO DATE MOVEMENT TO PROTECT PRICING FOR EXAMPLE PELLETIER HAD A COUPLE PRETTY GOOD DAYS HERE AND THERE THE PAST MONTH AND IT IS A WINNER FOR THE PAST TWO OR THREE YEARS AND TODAY IS HAVING HIS WORST DROP IN SEVEN MONTHS AND GETTING DRAG YOU DOWN WITH THE REST OF THE SOFTWARE NAMES LIKE PALO ALTO NETWORKS WERE THE WORST PERFORMERS A BUNCH OF OTHER MONTHS DATA DOG. SERVICE NOW. >> PELLETIER CLASSIFIED IN CLASS BY ITSELF REALLY SMACKS YOU SEE THAT AS THE ME BY HERE. >> WELL, WHEN UNNECESSARILY BY BECAUSE I THINK THAT IT IS OVERVALUED AT THE MOMENT THIS IS A GREAT COMPANY. >> IS AN AMOUNT. >> IT HAS AMOUNT AND IS ALL OF THE THINGS THAT WARREN BUFFETT LOVES YES AND A COMPANY AND DOMINATES THE MARKET SUMMIT ONE COULD ARGUE IT IS BEEN SO CHOPPY BECAUSE OF THE FEARS THAT A I WILL START TO MAKE PELLETIER BECAUSE OF THE PAST. >> FOR CHEAPER. >> IT IS POSSIBLE. >> ENGINEERS AND EXPERTS, AND EACH COMPANY WITH WHOM THEY DO BUSINESS THAT PERSON IS THERE AND HELPING THEM RUN THE DATA REALLY FIGURE OUT THE BEST WAYS TO EXTRACT ON IT. >> AND YOU LOOK AT PELLETIER INTO GOVERNMENT'S AND DEFENSE INDUSTRIES AND AROUND THE WORLD AND THOSE PEOPLE ARE NOT GOING TO THROW IT OUT FOR YOU KNOW