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Speaker 1: Let's get to our guest, Audio Zaman, partner of Wall

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Speaker 1: Street Alliance Group, for a closer look at markets. Well,

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Speaker 1: there's a lot of pessimism around right now, a lot

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Speaker 1: of bears, and I'm finding it difficult in talking to

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Speaker 1: people to get sort of a consensus view for next year.

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Speaker 1: I mean, people will tell you, well, the consensus is

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Speaker 1: this and that. But we're getting a lot of ranging views.

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Speaker 1: Some are looking for actually a pretty strong rebound in

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Speaker 1: in stocks and in risk assets, and others are still

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Speaker 1: bearish your thoughts and not a great to be again

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Speaker 1: with your brand. We would take the opposite side. We

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Speaker 1: would say that you know, obviously all this doom and

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Speaker 1: gloomer is there, but it's also important for invests as

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Speaker 1: not to realize that this is not armageddon. It's important

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Speaker 1: not to be too bearish at these levels because at

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Speaker 1: the end of the day, consumer spending, which is about

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Speaker 1: seventy of our GDP, is still relatively strong, especially in

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Speaker 1: the service area. And if you look of the mortgage rates,

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Speaker 1: they have more than doubled, but the housing market prices

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Speaker 1: year over year are still up. That's not falling off

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Speaker 1: the cliff. We're getting layoffs in the tech space, but

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Speaker 1: leisure and hospitality is gobbling up workers. So the high

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Speaker 1: stop with unemployment is at a historic law of three

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Speaker 1: point seven percent, and to us, this points to a

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Speaker 1: range bound market where there will be opportunities and there

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Speaker 1: will be vulnerabilities. So the question then is is that

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Speaker 1: we do not let the women see the FEDS medicine

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Speaker 1: taking effect. I think the FEDS medicine will slowly and

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Speaker 1: steadily taken effect, but I think we have to just

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Speaker 1: accept that the environment that we are going to go

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Speaker 1: in right now is very different from what we are

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Speaker 1: used to. We'll probably settle, in our opinion, at an

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Speaker 1: inflation rate of about five percent, where the FED funds

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Speaker 1: rate in the five percent range as well, and this

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Speaker 1: is a very different environment to what we are used to.

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Speaker 1: Right at the end of the day, I think bottom

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Speaker 1: line is that because of the changes in the immigration

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Speaker 1: policy in the US and because of low worker participation,

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Speaker 1: employers will have to pay higher wages to attract and

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Speaker 1: retain workers. And the error of low cost manufacturing from

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Speaker 1: China is also coming to an end, as we are

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Speaker 1: seeing companies like Apple move away their production from there.

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Speaker 1: So we think we're going to settle into a high

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Speaker 1: inflation five percent range, red funds rate five percent range,

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Speaker 1: and the leadership in this market is going to look

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Speaker 1: completely different from what it did in the past decade.

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Speaker 1: It's just tempting to look at the inversion of the

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Speaker 1: yield curve and to take a strong message from that.

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Speaker 1: And we also have earnings expectations being brought down. So

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Speaker 1: you can kind of understand the bears, can't you. I can, yes,

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Speaker 1: And we do agree that the growth areas of technology

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Speaker 1: are are especially vulnerable. I mean, you're talking about inverted

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Speaker 1: gield creve. If the one year T bill is giving

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Speaker 1: you four point six percent, you know, it becomes very

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Speaker 1: difficult to justify investing in a company with little on

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Speaker 1: no earnings. So certainly the vulnerability is there in the

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Speaker 1: high growth tech area. We are of the school of

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Speaker 1: thought that the leadership for the past five years is

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Speaker 1: clearly been in technology. We feel that over the next

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Speaker 1: five years the leadership is going to be changing and

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Speaker 1: it's going to be lying more in the energy, financials,

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Speaker 1: and pharmaceutical sectors. So what you are saying in your

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Speaker 1: in your research and as you sent us to look

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Speaker 1: at for the Wren Buffet way of investing Yeah, buffet

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Speaker 1: style of investing is back in worldershare because again, if

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Speaker 1: you look at Berkshire Hathaway stock, which is a stock

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Speaker 1: on our watch list that we like that has significantly outperformed,

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Speaker 1: this can be this year and Buffett is being greedy

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Speaker 1: when others are fearful right now. Uh, And in this environment,

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Speaker 1: we are seeing that the dividend thing value companies that

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Speaker 1: the type that Buffet likes, they're thriving. Right. So if

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Speaker 1: you look a look at, for example, the ice Shell

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Speaker 1: score high dividend e t f HDV that is up

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Speaker 1: this year when the market is down almost Yeah, it's

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Speaker 1: I don't know if you would broaden it. I mean,

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Speaker 1: it's tricky because these are cyclical type companies and if

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Speaker 1: indeed a slowdown is coming, then they may not be

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Speaker 1: the answer. Well, like I said, you know, certainly if

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Speaker 1: we take its sector by sector. So let's take the

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Speaker 1: example of oil for example, Right, oil is down today,

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Speaker 1: but we think in the long term it's going to

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Speaker 1: go up, right, because if you look at this transition

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Speaker 1: away from fossil fuels, it's clearly going to take time.

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Speaker 1: Right in the meantime, we've got supply constraints sope keeps

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Speaker 1: limiting the production. We've got geopolitical problems, and by twenty

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Speaker 1: forty five, if you take the long term view, we

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Speaker 1: anticipate the world's economy to more than double. Okay, we'll

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Speaker 1: have to close it there, Auto, but thanks very much

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Speaker 1: for joining us here. We appreciate it. Auto Zaman, partner

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Speaker 1: of Wall Street Alliance Group,