Bloomberg Surveillance · Monday, August 3, 2026
Gary describes the current market as having numerous instability factors, including the ongoing war, oil prices, and massive AI investment. He notes that large tech companies, historically free cash flow generators, are now asset builders, and consumer spending remains strong but bifurcated between wealthier and lower-income individuals.
“I would say we have as much instability or balls up. In the air as we've had. I mean, usually there's one or two driving factors in the market. Today, we've got a myriad of factors. You know, we've got the war going on, We've got the price of oil going on, we've got the major capex AI investment going on.”
“And the question is, you've taken some of the largest companies in America that historically have owned intellectual property and we're massive free cash flow generators, and then they recirculated that cash into the market, either by buying assets, buying other things, returning dividends, buying back shares. You've taken those companies and you've now made them huge, huge asset gathers, huge asset builders, and they're no longer creating free cash flow.”
“And the consumer, we know, the consumer continues to spend, spend, and spend. So even when you look at the GDP numbers, the strongest pieces in there are the consumer spending.”