Defiance ETFs CEO and CIO, Sylvia Jablonski, joined ‘Squawk Box’ to discuss the economy, consumer health, market trends, and the AI boom. She spoke with interviewer Becky Quick about the rallies in gold and AI, and what they say about the markets.
Jablonski believes that AI is not just a fleeting trend, but a full-fledged boom. "I think we're actually in the beginning of an AI boom," she stated. According to Jablonski, AI is going to permeate through all of the different sectors within the market.
She highlights the two-fold nature of AI's impact. "AI will expand into AI power and infrastructure on one side," she notes, pointing to the energy required for everything from crypto mining to data centers. The second aspect, she argues, is a defensive play, encompassing modern warfare applications. This includes autonomous drones, data fusion, and AI-driven solutions for autonomous vehicles, targeting, planning, and strategic information gathering.
Despite the enthusiasm, Jablonski cautions that earnings season will be critical. She states, "I think that's why every earning season right now is critical, right? I think the average investor is, you know, kind of glued to the screen to see what these large corporations are doing." Investors are closely watching not only AI spending but also its output.
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The consumer has remained pretty resilient and consumer demand remains strong.
The conversation also touched on the strength of the consumer, particularly the mid-to-high-range demographic. Jablonski notes that this group is "continuing to pour money into the markets and pour money into retail and consumer services." This is supported by a strong job market, steadying inflation, and potentially decreasing interest rates, which could lead to increased disposable income for consumers.
