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Speaker 1: Let's get to our guests, Danta Dioria co Cee i

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Speaker 1: oh and group president at invest Neet Solutions, Dana, thanks

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Speaker 1: very much for joining us. So seven point seven percent

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Speaker 1: of the CPI is still a lot of work to

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Speaker 1: be done, but it seems like the stock market maybe

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Speaker 1: in a hurry here, uh, trying to think of it

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Speaker 1: in a different way. Should we think of this as

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Speaker 1: a short term repricing rather than the beginning of a

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Speaker 1: sustainable rally or should we just back up the truck? Yeah,

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Speaker 1: I totally agree with you. Obviously. The market breathing a

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Speaker 1: huge sigh of release today. Um, yeah, I think it's meaningful,

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Speaker 1: right because we needed to see not only you know,

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Speaker 1: some tapering off and decrease there, but also there was

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Speaker 1: some breath in the number. I just wouldn't read too

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Speaker 1: much into it. It still is just one month. Um,

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Speaker 1: we've had the football pulled out from under us before

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Speaker 1: on you know, thinking that inflation was peaking and tapering

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Speaker 1: a bit um and then the other you know kind

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Speaker 1: of the other big thing to think about here is

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Speaker 1: getting inflation back down to the fence target is going

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Speaker 1: to be a process. Right. This is an annualized number,

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Speaker 1: so you know, it's a good reading. I don't want

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Speaker 1: to downplay it. I do think it has meaning, but

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Speaker 1: you have to take it with a grain of fault.

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Speaker 1: And I think, of course the market reacted as you

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Speaker 1: would expect them to react. But at the end of

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Speaker 1: the day, is this really telling you anything about the fundamentals?

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Speaker 1: You know, for example, if I look at the tech

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Speaker 1: rally and say, oh, you know, um it means that

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Speaker 1: you know, discount rates are are coming down a bit, No,

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Speaker 1: I wouldn't say so, not at this point. Yeah, let's

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Speaker 1: I'm forget. I mean, when you get a seven plus

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Speaker 1: increase on the NIAZAC, you're gonna be scratching your head

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Speaker 1: a little bit because then you know how much this

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Speaker 1: is all sentiment rather than actually anybody looking at the fundamentals.

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Speaker 1: But having said that, life sort of argued against myself

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Speaker 1: when I said, when I think when a fundamentals that

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Speaker 1: we didn't I mean talk about race. We did see

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Speaker 1: the tenure drop twenty seven basis points. Yeah, yeah, look, um,

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Speaker 1: you know there is a mentality out there by the

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Speaker 1: dip on tech and so some folks were waiting for

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Speaker 1: maybe just that right trigger or catalyst in order to

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Speaker 1: move into tech. And you know, it's interesting we've seen

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Speaker 1: if you look at E t F flows tech really

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Speaker 1: you look at like UM tech ets there, they've still

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Speaker 1: seen great inflows this year. And funny enough, you see

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Speaker 1: something like energy and even though it's doing so well,

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Speaker 1: it's obviously here to day one of the very few

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Speaker 1: positive places to be not getting so. So I think

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Speaker 1: the market is kind of bullish on tech and waiting

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Speaker 1: for that opportunity to buy in and they did it. Yeah,

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Speaker 1: you raise a good point there. Every sector was up,

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Speaker 1: but energy was the worst performing sector. It had a

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Speaker 1: gain of only two point two percent. So even if

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Speaker 1: you don't believe that this is the all clear, is

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Speaker 1: it maybe wise to do a little rebalancing from oil

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Speaker 1: related to maybe some of the other areas that have

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Speaker 1: been hit hardest. Yeah, it's and it depends of course

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Speaker 1: on what your your time frame is. I mean, certainly,

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Speaker 1: now that you've seen it come back a little and

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Speaker 1: if you've seen this rally, maybe saying okay, exactly that right,

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Speaker 1: here's my chance to to move back into some of

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Speaker 1: these sectors. Uh. You know, but but really how short

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Speaker 1: term are you thinking when when you're when you're grabbing

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Speaker 1: at something in a one day moment of this right now,

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Speaker 1: do you think that these markets may well now have

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Speaker 1: had a sea change given the magnitude of the price

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Speaker 1: action you've seen. Is it essentially just a bit of

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Speaker 1: a relief My that would be that it's a relief um,

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Speaker 1: you know, wouldn't surprise me at all if next week

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Speaker 1: we see some retracement, you know, and and coming back

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Speaker 1: from that. Uh. And I think what's part of what's

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Speaker 1: gonna impact markets as we go forward, of course, is

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Speaker 1: what's happening in um, you know, the election and certainly

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Speaker 1: some repricing action we may be seeing just related to

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Speaker 1: an expectation maybe of of things going one way and

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Speaker 1: and and going a little bit more the other way. Right,

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Speaker 1: So what does it mean for fiscal sending? What does

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Speaker 1: it mean for things like energy, um, you know, renewable

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Speaker 1: that sort of thing. I mentioned strong growth has reflected

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Speaker 1: in the Atlanta's GDP now model. But it made me

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Speaker 1: think of the lag effect. We often think of the

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Speaker 1: lag effect of these rate hikes on inflation, but there's

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Speaker 1: also a lag effect on on bringing down growth. We

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Speaker 1: have to go through that, don't we. Yeah, And I

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Speaker 1: think that one of the places that we're really um seeing.

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Speaker 1: That is, of course the unemployment rate, where the fet

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Speaker 1: has been sort of empowered to keep raising rates, and

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Speaker 1: and the nervousness that the market has is related in

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Speaker 1: part to what you're talking about here, which is that

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Speaker 1: you know, the effects that you're going to feel from

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Speaker 1: what's already been done are still yet to calm and degree. Right,

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Speaker 1: So it's this sort of panic around hey, is if

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Speaker 1: I'm going to make a policy or go too far here.

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Speaker 1: Unemployment rates have been low and have empowered them to

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Speaker 1: keep going. But if you kind of look at the

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Speaker 1: history of tightening cycles, it tends to be later on

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Speaker 1: that you do the unemployment increase. So we just may

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Speaker 1: be getting lag effects that we're going to have to

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Speaker 1: fact going forward that just they're not in the market yet.

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Speaker 1: All right. Well, let's also take a look at one

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Speaker 1: aspect here, and it is that the elections itself, the

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Speaker 1: nearly nowhere near as bad as what the Democrats to

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Speaker 1: a secretly uh thinking, gives a sense of how that

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Speaker 1: it changes things. That does it mean that the people

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Speaker 1: who were looking for a bit bit of a fitt

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Speaker 1: for the the green side of things, if you will,

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Speaker 1: are going to get a bit of a boost. Yeah,

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Speaker 1: And I think we're seeing it already. I mean we

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Speaker 1: have been seeing you know, some of these energy renewable

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Speaker 1: related stocks, green energy, um getting putting under pressure, and

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Speaker 1: I think that gets relieved a little bit. I think, look,

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Speaker 1: the Democrats are going to take this as nothing short

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Speaker 1: of practically a mandate. It pretty is, It is pretty

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Speaker 1: unusual in a mid term like this, and when you

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Speaker 1: think about two where Biden was just not very long ago, Um,

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Speaker 1: you know, for this to occur, right, for for Democrats

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Speaker 1: whole done as strongly as they have regardless at this

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Speaker 1: point of where the Senate goes. And I think, of course,

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Speaker 1: you know, we could see, we could see the Democrats

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Speaker 1: of course keep the Senate. So I do think it

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Speaker 1: means that, um, you know, during the lame duck session,

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Speaker 1: there's gonna be an effort to push you know, some

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Speaker 1: of these programs that they've been looking at trying to do.

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Speaker 1: And I think it means that they're going to feel empowered.

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Speaker 1: Now there's there's opposing forces here, right, which is think

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Speaker 1: about interest rate increases and what that's done, deficit spending

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Speaker 1: and um, you know the cost of carrying our debt

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Speaker 1: and you know, that's gonna also weigh on potentially some

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Speaker 1: of these packages, So there's pushed in Paul. I'm just

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Speaker 1: surprised that more press hasn't been given to how much

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Speaker 1: the budget deficit has come down under Biden. But that's

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Speaker 1: really a discussion for another day, I suppose. But the

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Speaker 1: overall take from the election, should we consider it that

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Speaker 1: people just don't feel that bad, They didn't feel like

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Speaker 1: a change, a huge change was necessary, and maybe that

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Speaker 1: bodes well for sent in it. Well, I think yeah,

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Speaker 1: I think, Um, you know, it's interesting the effects right

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Speaker 1: oil came down. Oil is very well correlated with you know,

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Speaker 1: presidential approval ratings. Presidential approval ratings tend to be correlated

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Speaker 1: with what happens in mid terms. I think Democrats, you know,

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Speaker 1: flip the script a little bit on that. I don't

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Speaker 1: know it was so much about Biden. Um, it was

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Speaker 1: really more about the ticket. So I do think that

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Speaker 1: you know, that played in. But you know, again, like

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Speaker 1: something like oil prices coming down, even things like China's

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Speaker 1: lockdowns right that that sort of took some of the

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Speaker 1: demand off, have all played into this. Okay, thank you

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Speaker 1: so much, Sdanna. It was a pleasure having on the

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Speaker 1: program Donna Doory of the Joining Is, where she is

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Speaker 1: a co CEO and Group president in invest Net Solutions