I mean, I don't I don't think we have to be in a bubble for the market to say we're going to take a break for a while from the expensive tech stock. I mean, and that has happened multiple times. So, I try to sort of sidestep, you know, the the argument of maybe the riskreward is better elsewhere is not answered by Yeah, but it's not a bad bubble, okay.Because you can still be outside of a bubble or in the bubble in the making or two years away uh and still have the riskreward not look great. We weren't in a ...

Core Insights - The executive chairman of Check Point Software Technologies, Gil Shwed, discussed the challenges in the cybersecurity sector and the company's recent acquisitions, emphasizing the importance of AI in transforming the industry [1][3]. Group 1: Market Assessment - Shwed expressed skepticism about the presence of a bubble in tech stocks, noting that while AI represents a significant revolution, there may be overvalued stocks in the market [2]. - He compared the current market situation to the Internet bubble of 2001, stating that while the revolution occurred, the market experienced significant volatility [2]. Group 2: AI and Cybersecurity - AI is expected to play a crucial role in cybersecurity, potentially addressing the shortage of cybersecurity experts by allowing humans to oversee systems rather than operate them [3]. - However, the rapid pace of AI development also poses risks, including potential attacks on infrastructure and vulnerabilities in data communication [3]. Group 3: Acquisitions and Company Strategy - Check Point acquired Swiss company Lakera for $300 million to enhance its AI capabilities, highlighting the depth of technology found in the acquisition [4]. - Shwed emphasized the need for companies to create customer value and profit, criticizing the current market focus on fundraising rather than value creation [4]. Group 4: Competition and Market Position - The cybersecurity market is highly competitive, but Check Point has demonstrated the ability to generate long-term customer value and profits [4]. - Shwed acknowledged the presence of tech giants in the cybersecurity space but maintained that there is room for all players in the market [4]. Group 5: Leadership and Shareholding - Shwed remains the largest shareholder of Check Point, having sold over a million shares for approximately $205 million, but he intends to maintain his position [4]. - After stepping back from the CEO role, Shwed expressed satisfaction with his current involvement in the company, enjoying a less intensive work schedule [4].

Core Viewpoint - Nvidia's strong earnings report provided a temporary boost, but concerns about high valuations and the sustainability of AI investments remain prevalent in the market [1][4][10] Group 1: Nvidia's Performance - Nvidia surprised Wall Street with accelerating growth and a fourth-quarter forecast that exceeded expectations, despite previous quarters of slowing sales [1] - Nvidia's shares experienced a decline of over 2% after an initial rally, reflecting ongoing investor skepticism [7] - The company generated $60 billion in free cash flow over the past 12 months, but to justify its current stock price, it would need to produce $2.1 trillion in annual cash flows within 10 years [12] Group 2: Market Reactions - Initial relief in global stocks turned negative as investors refocused on concerns about tech stock valuations and the delayed release of payroll data [2][4] - The S&P 500 and Nasdaq Composite indices fell by 1.2% and 1.7% respectively, indicating a broader market pullback [7] - Concerns about tech stock concentration and potential bubble risks are prevalent, with the S&P 500 tech sector's forward price/earnings ratio at approximately 30 times, significantly above its 10-year average of 22.2 [11][10] Group 3: Economic Outlook - Investors are increasingly viewing earnings results from Nvidia and other tech companies as critical indicators of the economic outlook, comparable to monthly economic releases [6] - The Federal Reserve's decision to maintain interest rates, influenced by stronger-than-expected payroll data, has contributed to market uncertainty [8][9] - Analysts express skepticism about the long-term returns from AI investments, suggesting that concerns will persist in upcoming quarters [4][5]

Core Insights - A majority of Asia-Pacific institutional investors anticipate a market correction in 2026, primarily due to concerns over a potential tech bubble, geopolitical tensions, and recession [1][2]. Group 1: Investor Sentiment - 74% of institutional investors globally believe a correction is overdue, with 80% in the Asia-Pacific region sharing this sentiment [2]. - Among Asia-Pacific investors, 48% cite the potential for a tech bubble as their top concern, followed by geopolitical shocks at 45% and recession at 40% [3]. - The sentiment indicates that markets may face challenges in the upcoming year, as noted by Natixis Investment Managers [5]. Group 2: Investment Strategies - Approximately 60% of investors in the Asia-Pacific region plan to increase their allocations to equities within their home region to diversify away from the US market [6]. - Only 25% of global investors intend to increase their allocations to US equities, compared to 44% for Asia-Pacific equities and 42% for emerging market equities [8]. Group 3: Market Outlook - Views on the Chinese market are cautious, with three-quarters of global and Asia-Pacific investors indicating that slow growth is the "new normal." However, 70% of Asia-Pacific investors believe China can withstand a prolonged trade war with the US [9].