The market is broadening without damage to the headline index, which is exactly what you want to see.

5:35now the market is broadening without really any loss to the headline index. And just to give you an example, since June 2nd, the S&P has not made a new high. It's down about half a percent. Which is really not a big deal, of course. Um, but the uh the AI space within the S&P is down 15%. The Cosby index in Korea is down 22%. uh the equal weighted index is up two

6:02and the X ai space within the S&P is up five. So uh and 71% of stocks in the S&P are above their 200 day moving average. So right now we're getting a broadening which of course is what we always want to see. We want to see a lot of companies and stocks participate. U and the broadening is happening without damage to the headline index. And that to me is is a win and I hope that it

6:29continues. It's surprising I think to a lot of people that thought once the mag 7 underperforms that's going to be bad for the market. You mentioned the buyback thing. I think that's interesting that the the buyback ratio has gone down so much and obviously it's driven by these big stocks. How much did buybacks matter in terms of how the stock market has performed for the past 5 10 years? Is it is that going to be a

6:48big headwind if they're not buying back stock going forward? >> Um I think it is a headwind. Um so again when I look at the secular bull market over the last you know decade and a half or so um financial engineering if you will was definitely a part of that right so we all know the story about the deequitization of the markets uh companies were not going public they

7:11didn't need to they had the private markets to do that um and companies were buying a lot of shares back and again the payout right the payout ratio was north of 90% %. So, so if you're a shareholder and a company earns, you know, a good profit and it's returning 90% of those profits back to you in the form of a dividend or a buyback, you know, you're going to pay up for for

7:36that company. So, buybacks drive valuation. Um, and again, not that buybacks are good or bad. Uh I mean it's a contentious issue sometimes but if a company spends the money on capex and that capex earns a good ROI then that you could argue that's better than a buy than a buyback. But a buyback is like a bird in the hand. You know what you're getting. Uh if a company invested then