Tyger Fitzpatrick: Welcome back to another edition of Market Minute. Today I’m joined by Bryce. Bryce, thanks for joining us. I guess my first question for you, it’s been a wild week for markets, particularly in the US. So what’s actually going on there.

Bryce Anderson: It has been a wild week. I think last week the market had its worst week since Trump announced his big his big tariffs and bought out his black board. That’s really down to a couple of things. So I guess the midterm elections and the Democrats having a pretty commanding win and then a bit related, but also a bit separate, is the jitters around AI and some of the reactions we’ve had to stocks there.

Tyger: Talking on AI. Why has it been such a tough environment?

Bryce: Yes. So I think the context is pretty important. So until very recently, it’s been a pretty rosy picture for the ecosystem that the hyperscalers, the semiconductor companies and that AI model providers, it’s all been thought that everyone’s going to everyone’s going to win. To spend everywhere is going to be commercialized, and the return on investment is going to hit the required hurdles.

Now, some of the risks that have always been there have started to rear their head around sort of that return on on invested capital. And some of the markets are now a bit more concerned about that, some of the financing issues. Nvidia has been in the headlines and had a pretty tired time over the last little while. All those issues around concerns around return on invested capital, play into play into Nvidia and potentially how that how they benefit or not.

And then I think another thing which is layered on top of that, which is only come out recently, is the left field thing around Jensen Huang. And he’s had an affair. And US officials think that’s with an individual who’s got links to Chinese intelligence. So that’s just something that’s unknowable to just come out. That’s had a big impact on that business and how that’s been priced in the market.

And it’s off quite a substantial amount as a result.

Tyger: Moving more locally. Now, what are we seeing on on home soil.

Bryce: Yeah. So the issue is a bit less I guess not relevant, but it’s in our market. It’s a much smaller part of it. So our market in all these jitters is held up held up pretty well. But I think when you look at what’s happened in the last week and with following the RBA’s decision to increase rates again, and I think one thing that’s been topical in the headlines is David Jones entering administration.

Now, it’s a bit of a stark reminder of how much retail has changed, but it’s also a stark reminder of how tough it is for retailers out there and the consumers really, really soft in that they’ve absorbed five five rate increases. And so I think more locally, it’s very much a sort of an interest rate story and a consumer story in terms of things that the attention is on.

Tyger: To wrap that up, what’s the lesson here for investors?

Byrce: I think the lesson. Is always I think there’s always a lot of noise in markets. And volatility is actually probably a price you have to pay for long term returns. So the volatility is actually a feature not a bug. So we’d say that that all this is pretty normal in terms of volatility. And how we sort of want need investors to think about is to sort of focus a on the long term and be on what you can measure and guess.

Cash flows are a big part of that. And trying to value those cash flows rather than trying to chase your towel in terms of these market reactions.

Tyger: With recent volatility in the US markets, are you guys seeing any new emerging opportunities or make any changes to the portfolio?

Bryce: I think like long term fair values don’t don’t change a great deal with with with all these things that happen. It’s the price that changes. And so obviously if prices are down that’s often a chance to to look for potential bargains where we’re seeing and our eyes are being turned to is probably the hyperscalers more than anywhere. So the likes of Amazon Alphabet are starting to guide our attention towards there.

But we’re proceed with caution, I guess is a bit of a message from us on those names.