Wellum’s Warning: The Tech Boom Is Starting to Crack

**SPEAKER_1** (0:01)
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**SPEAKER_3** (0:56)
So you're saying with Hilton Honors, I can use points for a free night stay anywhere?

**SPEAKER_2** (1:01)
Anywhere.

**SPEAKER_3** (1:02)
What about fancy places like the Canopy in Paris?

**SPEAKER_2** (1:04)
Yeah, Hilton Honors, baby.

**SPEAKER_3** (1:06)
Or relaxing sanctuaries like the Conrad and Tulum?

**SPEAKER_2** (1:09)
Hilton Honors, baby.

**SPEAKER_3** (1:11)
What about the five-star Waldorf Astoria in the Maldives? Are you going to do this for all 9,000 properties?

**SPEAKER_4** (1:18)
When you want points that can take you anywhere anytime, it matters where you stay. Hilton, for this day.

**Jonathan Wellum** (1:26)
The Internet has changed our world, but people overpaid. Are you paying for a dream, or are you paying for a real business? So be prepared to be disappointed. That's really the big issue, the sky-high expectations. Will you take a capital loss and you have a setback for maybe 3 to 4 years? Spectative fever, FOMO, I can't miss out. So we're seeing the same thing again, and that means caution.

**Maggie Lake** (1:56)
Hello and welcome to Wealthion. I'm Maggie Lake. Joining me today to discuss how to find value in this market is Jonathan Wellum, CEO and CIO of Rocklink. Good morning, Jonathan.

**Jonathan Wellum** (2:06)
Good morning, Maggie. I think you're picking on me here. You're picking some of the toughest times to get on here and start talking about what we're up to.

**Maggie Lake** (2:12)
That's why we need people like you. That's exactly what we need is somebody on the other end of the phone. But we really appreciate you taking the time. If you are listening to this, I'm sure you're feeling these tough times. It's volatile. There's a lot going on. There's a lot of conflict in the narrative.
If you want to stress test your portfolio, figure out if you're on the right track, you can get a free review from an advisor in our network like Jonathan. You can just go to wealthion.com/free.
We all need a little help. You're going to help at least put my mind at ease, Jonathan. We have a wild investing environment we're in, even sort of market veterans and long time folks who've been doing this, like yourself, have been saying, wow, this is a lot. We have big price swings in sectors like semiconductor and AI related names, giant IPOs coming to market. And I think a lot of investors are struggling with the question, is this a bubble or is this the future? Should I have exposure or am I chasing a top? You're a value based investor, that's sort of the framework you use. How are you tackling these questions?

**Jonathan Wellum** (3:19)
Yeah, good question. We obviously get questions from people. When you start to see sub indices like the semiconductor index go up 70 plus percent year to date, things like this, and you start to see these parabolic moves, and you just have this endless amount of capital going into AI, AI data centers, data centers, you have to take a deep breath and step back. This is classic over investing, chasing certain markets up. The only way we can go and approach it is to go back to valuations and try to separate the hype from the durable value of these businesses because in many of these businesses, there is a durable value being created. Clearly, SpaceX over time could be certainly one of the largest market cap companies in the world.
The entropic and AI related businesses, these are serious companies, but you got to try to separate the hype from the true value. So you got to look at the price. What are you paying for these things?
You have to be careful about looking at how much they can grow, the forecast, what's it dependent upon. You have to be careful again that you're not just chasing the top, the hype.