We are learning every week, every month, every year that one single session a market does not make. But where do you go? The anxiety in semiconductors, high demand. We had economic data in 24 hours time. That is very important. And we always thinking about the Fed. When you wake up, Christina, with a technology investor's perspective, what do you first think of? First of all, I think it's important for investors to recognize that they have a longer time horizon than one day or one month or even several months. And so it's important not to be too reactive to understand that valuations are relatively high. And so when stocks are priced near perfection, we're likely to see jitters, we're likely to see concerns. And I think one of the overarching concerns we're seeing right now is this fear that it can't continue, that we won't see companies continue to spend,

to invest in AI. And I think that that's probably more a fear than a reality because what we're seeing is that investment in productivity-enhancing areas has actually improved productivity growth. And so this is something that companies recognize, and I truly believe the risk of not investing is greater than the risk of investing, but that might not calm investors today. So diversification certainly helps. But I think just understanding we're likely to see volatility, but that doesn't mean we won't see significant gains over the course of a year, two years, and even longer. Nvidia back in the red once again and has raised a lot of its market capitalization. Christina, there has been an anxiety that we've just put too much into too few companies. When you say diversify what, into other tech names or just other types of companies, other types of companies, let's face it that if all goes well, if the thesis for a soft landing holds and

We see the Fed start to cut rates. That could create a very supportive environment for risk assets in general. That doesn't mean that tech will outperform, but it's probably going to keep up or follow closely behind cyclicals, smaller caps, those areas that are more sensitive to the economy. So this could be a very positive environment, and I think one that investors will appreciate, even if we see some spasms, some fits of fear and lack of confidence along the way. Christina, you talked about sort of gyrations a moment ago, weeks, months, years, and in the context of NVIDIA, for example, a lot of the investors we had in the show after earnings were long-term investors who say we accept the short-term volatility, but we're holding because we understand the datacenter buildout that's happening. Is it important to be diversified though, even if you take that mindset? So I think it's critical to recognize that there are many, many

companies that will benefit from AI. So if you're feeling very confident about the AI story, that's going to help companies in a variety of different sectors and industries. And in fact, we've heard on earnings calls in the last quarter that companies have been using AI already and seeing some really significant results in terms of their sales. And so I think it's perhaps taking that theme and looking to those other sectors and industries, especially service areas of the economy, to find opportunities. There can be a significant diversification by just doing that. Christina, how important is tomorrow's jobs report? I'm sorry. How important is Friday's jobs report? So Friday's jobs report, I think what we're likely to see is job gains, nonfarm payrolls around one 5160 in line with expectations. And that's appropriate given where we are in the cycle. I think the Fed will be satisfied with

that. I mean, it certainly said it doesn't want to see any significant deterioration in jobs from here. I don't think we'd see that. And that's pretty much a pre-pandemic trend level is to get about 151 6170. I don't think there's anything that will come out of Friday's jobs report that changes the Fed's decision in September. I think we're going to get a 25 basis point rate cut. I think if we get a weak jobs report, that will not change that. I don't think we're going to get a 50 basis point cut. That's because the Fed really does believe that it is doing the right thing. It's on course. A 50 basis point cut would be an admission of guilt, in my opinion. Even when it was behind the curve in March of 2022, it only hiked rates 25 basis points.

So that's how I think this is going to play out, and that should be positive for markets. If we got a 50 basis point cut, we might actually see more volatility and some kind of sell-off because it suggests there's more weakness in the economy than many thought. Deja vu now versus the beginning of August. Are we going to get these bouts of volatility as aggressive as we're suddenly seeing? I suspect we will. There's a lot happening right now. We not just have the Fed meeting, but we have a presidential election. We have a lot of other central banks cutting at the same time. I think that creates an environment where there's concern, where there's uncertainty. We also have this dueling concern among investors where they're looking to rate cuts and the opportunities presented by them. But they're also still worried. There's this nagging concern that we could still go into recession. And so I think that all comes together in terms of outsized reactions to

Invesco's Hooper: Valuations Relatively High

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Invesco's Hooper: Valuations Relatively High

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