The current AI boom resembles the internet boom of the late 1990s structurally, but the critical difference is that valuations are compressing, not expanding — you cannot call it a bubble.

34:19>> yeah, and by the way, those eur and those Euro zone banks are trading at a 10p. >> It's corre I the the performance I I was really shocked at that. Very interesting. Um, you talked about the the kind of analogy to the do bubble. Guys, let's pull the chart here. This this is kind of crazy that so you started this in what 1998. So you're saying the tariff tantrum was kind of

34:39the 1998 level. >> Yeah. >> If we're if we're thinking about the '90s, it is kind of crazy because we had the the down year in 2022, but we've had essentially now going on three or four years of, you know, 20% returns kind of like we had in the '90s. It is >> it is kind of eerily similar. Um I guess the one piece that's different is

34:57probably the the valuations. Is that the the biggest change? >> Yep. Yeah. So if we if we think back to the internet boom, right, it really became recognized in 95 when Netscape went public and the AI boom really I guess got really recognized when chat GPT got launched in late 2022. Right? So those are two similar points. And by the way, they're similar for more reasons because 2022 was the big rate reset and

35:241994 was a big rate reset as well when Alan Greenspan raised rates out of nowhere. >> And so there's a linkage there. And then 98 when long-term capital had their liquidity crisis. You know, the market fell 22%. And then it just roared back. The Fed eased three times and that was sort of the meltup. That's when the meltup began and that's when the internet boom became a bubble that burst

35:50then in March of 2000. Uh the tariff tantrum in April of 2025. I I it's obviously a different episode, but that was a 21% decline. Um and the market came roaring back. The Fed eased three times and that's when the AI sort of I don't want to call it a meltup. sounds too too uh too too flamboyant but but that's kind of when the market really started to go vertical in terms

36:17of the AI story. So there are parallels there. But again, you know, going back to 98 to 2000, the PE on the tech sector went from like 36 to 70. It doubled basically, right? >> This time it's gone from 22 to 21, >> right? So it's a totally different story. That last episode of the internet bubble was entirely valuation uh unsupported by anything else. And this one the earnings are so big that the