Defiance ETFs CEO Sylvia Jablonski: There's a chance we avoid recession and have a softer landing

We are getting ready for the final trading session of the month and joining us right now is Sylvia Dziplanski. She is the CEO and Chief Investment Officer of Defiance ETFs. Good morning to you. Let's start with both the target earnings and maybe some of the comments that we heard from David Solomon about his expectation for the economy going forward. But I'm curious what your reaction to those numbers were and what they meant in terms of the consumer right now. Yeah. You know I think we're in an interesting spot in the market right now.

So the consumer remains somewhat stronger at least in a stable position. But we have a Fed that we know is looking to really de-accelerate the economy and perhaps you know bringing forth the fears of recession and slowdown and things like that. So I think it's going to affect the market in the short term in terms of you know a lot of volatility and worries about us crossing back under those 50 day 200 day moving averages. But you know what I do take from this though is that in in the meantime you know the consumer has been spending the consumer still has a good amount of cash and savings accounts. It's not at the all time high levels. And so there is potential that we do avoid a massive recession and that we kind of have you know that softer landing version of this scenario. In a softer landing scenario what do you want to own.

And in a hardest landing scenario what do you want to own. Yeah. So in a softer landing scenario I'm looking through right. I think that this year is going to be tough. I think that you know as I said the Fed is on his his mission. I think in a softer landing scenario I'm big on AI. So I'm going to look at all of the AI machine learning stocks.

You know all of the names that are going to change the way we sort of live convert e-commerce change health care change cybersecurity driverless cars all of these things that are you know growing. And if you just look at the user base of chat GBT in its first couple of months out over 100 million users Kager is expected to be 37 percent by 2026. That's not so far off. So I'm looking through if we get the hard landing I'll probably stick to more defensive names look at some health care types of names and also look at some of the fixed income products. You know you have a lot of cash like equivalents that are paying four or five to four or five percent right now. And I think that a lot of investors particularly those closer to retirement will probably play in that arena. What are the tech names that you like if AI is your place.

And the other thing is how much do you fear that we're because we're all we're doing is talking about AI right now that maybe it's overbought even even in this environment. Yeah I mean I think it's just there's a lot of hype around it right. So when Microsoft came out and announced their investment in open AI and chat GBT I think a lot of people sort of perked up and paid attention and so got a lot of hype like everything else. But there's a huge difference I think between AI and something like let's say the metaverse which could be a decade off. You know we're talking about this is going to come to fruition in months. So companies that benefit you know Microsoft is going to be a leader there. I like IBM in this space Google even with the barred you know sort of mixed up I think they're going to power ahead to now really win that race and end the video the staple of AI.

Sylvia we want to thank you for joining us. Appreciate it very very much. Thank you.

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