Productivity growth will 'legitimize AI enhancement' if it picks up, says Harris Financial's Cox
2025-12-31_18-50 • 3m 38s
? (Anchor)
00:00.040
With
us
Jamie
Cox,
managing
partner
at
Harris
Financial
Group.
Jamie,
I
got
a
real
kick
out
of
the
notes
I
got
from
you
because
it's
been
a
long
time
since
I've
seen
someone
so
plain
spoken
about
the
AI
bubble
and
whether
it's
there
or
not.
Can
we
start
with
that?
Jamie Cox (Managing Partner)
00:20.520
Sure,
Candace.
Happy
New
Year.
Um,
you
know,
we're
we're
people
have
been
talking
about
AI
bubble
for
the
last
couple
of
months.
I
mean,
it's
even
been
on
60
minutes.
What
people
are
paying
paying
attention
to,
they're
trying
to
relate
it
to
the
1990s
when
there
was
no
earnings
Jamie Cox (Managing Partner)
00:35.160
growth.
There
was
no
underlying
fundamentals
that
supported
the
stocks
that
were
being
run
up.
What
you
have
now
is
a
completely
different
situation.
You
have
a
situation
where
the
companies
that
are
investing
in
in
in
the
infrastructure,
they
actually
have
the
earnings
growth
Jamie Cox (Managing Partner)
00:48.920
and
the
capital
to
support
that
investment.
And
And
also
the
largest
tech
companies,
right
now,
are
doing
the
investment
to
try
to
crowd
out
and
make
sure
that
none
of
the
the
smaller
players
players,
actually
get
a
foothold
and
actually
take
over
and
gain
market
share
from
Jamie Cox (Managing Partner)
01:03.960
them.
So,
it's
a
completely
different
situation.
And
so,
we're
not
yet
in
a
bubble.
That
doesn't
mean
that
there's
not
going
to
be
one
in
some
some
future
state,
but
what
we
don't
see
are
some
of
the
markers
that
typically
define
bubbles.
Like,
we
haven't
seen
any
of
the
typical
Jamie Cox (Managing Partner)
01:19.320
or
the
the
privately
held
companies
come
to
IPO
yet.
These
are
typical
signs
that
you
see
after
when
you
see
before
there's
a
bubble.
What
we're
going
to
see
next
year,
I
think,
is
some
of
these
companies
come
to
market
and
I
think
what
you
will
see
is
you'll
start
to
see
Jamie Cox (Managing Partner)
01:37.600
clarity
where
you
actually
get
to
see,
you'll
get
to
digest
and
understand
some
of
the
fundamental
financial
information
coming
from
these
companies
as
they
report.
And
that
will
really
fuel,
I
believe,
in
in
in
actually
more
growth
in
these
tech
companies.
I
I
actually
think
Jamie Cox (Managing Partner)
01:53.640
we're
probably
just
at
at
the
press
of
the
day
of
actually
happening.
What
? (Anchor)
01:56.520
do
you
think
fuels
the
opportunity
for
the
smaller
guys
the
guys
that,
you
know,
the
big
guys
are
trying
to
keep
out.
And
and
do
you
think
that
some
of
the
big
guys
that
are
right
now
private
go
public
next
year?
Are
we
going
to
see
more
IPOs
for
Open
AI
or
Anthropic?
Jamie Cox (Managing Partner)
02:12.920
Yeah,
I
I
I
don't
know
exactly
what
it
will
happen,
but
I
assume
that
you're
going
to
you're
going
to
start
to
see
them
come
public.
And
and
the
reason
is
is
because
they
really
do
need
to
legitimize
themselves
and
doing
and
going
public
will
do
that.
In
in
addition,
there
have
Jamie Cox (Managing Partner)
02:28.000
been
so
many,
you
know,
reports
of,
you
know,
electricity
deficiencies
and
the
infrastructure
play.
And
what
I
noticed
is
is
that
people
tend
or
investors
tend
to
overestimate
the
ability
for
the
infrastructure
in
terms
of
investment,
but
underestimate
the
software
portion
of
Jamie Cox (Managing Partner)
02:44.960
it.
The
That's
what's
really
going
to
define
the
moment
for
us
is
what
comes
next.
What
What's
happening
right
now
with
Nvidia
and
some
of
the
infrastructure
plays,
there's
plenty
of
money
to
be
made
there,
but
the
real
money
to
be
made
is
what
the
productivity
enhancements.
We
Jamie Cox (Managing Partner)
02:58.640
all
know
this.
This
is
not
something
and
brand
new.
It's
not
not
in
the
market.
We
just
haven't
seen
it
yet.
But
we're
going
to.
And
if
you
look
at
the
economic
data
that's
been
released
in
the
past
couple
of
months,
one
of
the
things
that
gives
me
the
greatest
sort
of
hope
is
Jamie Cox (Managing Partner)
03:12.240
we're
starting
to
see
some
increase
in
gross
domestic
income.
And
if
productivity
growth
picks
up,
that
will
legitimize
the
AI
enhancement
piece
of
this
productivity
wave
and
that's
going
to
create
a
lot
of
value
for
investors
over
time.
And
I
think
that's
where
people
need
to
Jamie Cox (Managing Partner)
03:26.800
pay
close
attention.
And
it's
not
just
going
to
be
with
the
largest
tech
company
It's
going
to
be
very
broad-based.
It's
going
to
enhance
the
earnings
potential
of
many
companies
in
many
sectors,
industrials,
financials,
and
others.
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