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Speaker 2: Russ Mayfield with us right now and vest strategists Bared Ross.
Speaker 2: I love your note where you say, Okay, they're selling this,
Speaker 2: but they're not running from the market. Describe.
Speaker 3: Yeah, So the S and P is within a percent
Speaker 3: of the all time high, and the momentum index is
Speaker 3: down some twenty five percent. So you've had this big
Speaker 3: rotation out of the darlings of the first half, and
Speaker 3: there's a lot there to pick up the slack. You know,
Speaker 3: equal weights in you an all time high, small caps
Speaker 3: in you an all time high. And it's you know,
Speaker 3: some defensives and that's to be expected. Healthcare utilities catching
Speaker 3: a bid, but financials industrial is doing well. You don't
Speaker 3: see that if it's a you know, investors fleeing the
Speaker 3: asset class because they're worried more of a rotation, which
Speaker 3: you know, I think is healthy, So we'll take it.
Speaker 2: It's healthy, and it's not a correction, is it. I mean,
Speaker 2: we're just simply on a blended basis. There's a lot
Speaker 2: of carnage out there, but we're nowhere near like quote
Speaker 2: unquote a correction. No, not even close.
Speaker 3: I mean the one thing you could worry about is,
Speaker 3: you know, where, where's the leverage in the system, and
Speaker 3: if there's enough of a momentum unwind, do leverage players
Speaker 3: you know, have to start selling other things, you know,
Speaker 3: to meet margin calls or whatever it is. So maybe
Speaker 3: there's some technical pressure down the pipe. But again, the
Speaker 3: indexes are within a percent or two of an all
Speaker 3: time high. I mean they'll be down a little bit today.
Speaker 3: But yeah, correction, not even close. Rotation, healthy, consolidation, whatever
Speaker 3: you want to call it, it's it's not a reason
Speaker 3: to get to get scared of things here.
Speaker 4: Well we're els.
Speaker 5: Let's talk about you know, rotation, right, I mean, let's
Speaker 5: talk about those factors that do drive the equity market,
Speaker 5: lowvall value growth. You tell me the second half of
Speaker 5: this year, which of those factors do you think do
Speaker 5: you expect to do the best?
Speaker 3: I think value could catch a bid, right, I think
Speaker 3: financial is industrials, some of those classic value stocks, energy
Speaker 3: is obviously going to move with oil, but that's been
Speaker 3: good lately.
Speaker 2: To me.
Speaker 3: The strength or the robustness of that move depends on
Speaker 3: what happens in Iran. If we get yields down and
Speaker 3: oil down, I think value has legs. If we don't,
Speaker 3: you know, it's more of a mixed bag.
Speaker 2: Okay for us, We've all got experience here. Henry's in
Speaker 2: the studio today, Rocket, he listens every morning. Henry's ten.
Speaker 2: For the kids out there, Ross, how do you begin
Speaker 2: to learn about your game with all these different narratives
Speaker 2: going on? What's your advice to Henry about starting an
Speaker 2: investment account?
Speaker 3: Well, I would say get started now, Henry. The best
Speaker 3: time to buy stocks was ten years ago. The next
Speaker 3: best time is today. I think this is a perfect
Speaker 3: time to learn about stocks because we're about to enter
Speaker 3: an earning season where the thing that really drives stocks
Speaker 3: over the long term takes center stage. A lot of times,
Speaker 3: it's easy to forget what the main driver of stock
Speaker 3: prices is. And we're about to see a great quarter
Speaker 3: of earnings. So Henry, pay attention to what these companies
Speaker 3: are saying. That's the house, that's the game.
Speaker 2: Yeah, I'm read now. You know, justin Bear's great, great
Speaker 2: book and Damien, there's always an excuse to say no.
Speaker 5: Right, well, I mean there is always an excuse to
Speaker 5: say now. I think look, I think you're making a
Speaker 5: good point here, Ross about position sizing, or at least
Speaker 5: that's the way I'm reading what you're saying, right, I mean,
Speaker 5: you can take risk in this market, but it's about
Speaker 5: you know, it's about how you position within the broader portfolio.
Speaker 5: And you know, instead of getting defensive outright and buying
Speaker 5: you know, I don't know what are defensive Stucker, staples, utilities,
Speaker 5: energy to a lesser extent, you know, maybe you just
Speaker 5: have to kind of, you know, take a little bit
Speaker 5: off the table here.
Speaker 3: Yeah, And one of the things we've been talking about
Speaker 3: to clients is, you know, there's a lot of passive
Speaker 3: investors out there who might not know how concentrated their
Speaker 3: portfolios have gotten, especially in the AI trade, and so
Speaker 3: it's a good time to be proactive about looking to
Speaker 3: those other sectors. It's not necessarily a repudiation of AI trade,
Speaker 3: but more just as you mentioned, kind of risk management, diversification,
Speaker 3: and I think a lot of people don't know how
Speaker 3: concentrated the SMP is even if it's you know, talking
Speaker 3: about all the time.
Speaker 5: That's the correct I mean even internationally, right, you can
Speaker 5: make an argument like what we're seeing in China with
Speaker 5: their stock market is heavily tied to the AI trade
Speaker 5: one hundred percent.
Speaker 3: I mean, the EM indexes now are so weighted in China,
Speaker 3: Korea and Taiwan that they're basically AI indexes. They're not
Speaker 3: plays on you know, demographic growth or stronger economic growth
Speaker 3: in the emerging market world. So you just have to
Speaker 3: know what you own and then like you said, those
Speaker 3: positions accordingly and kind of just play the game. You know,
Speaker 3: risk management is important here.
Speaker 2: With Bart Russ Mayfield with this is when you thank
Speaker 2: you so much. Stay with us. More from Bloomberg Surveillance
Speaker 2: coming up after this.
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Speaker 2: Last time, Tiffany Wilding was on for like a minute
Speaker 2: and twelve seconds. Going along here today for the Pacific
Speaker 2: Investment Management Company. They're economists for all of North America,
Speaker 2: Tiffany Wilding. Tiffany, what are you thinking about for the
Speaker 2: PIMCO manager brief on Monday morning. What's the thing that
Speaker 2: matters right now?
Speaker 6: You know, Well, I.
Speaker 7: Think we're clearly focused on on how Federal Reserve official
Speaker 7: communication is evolving. You know. Obviously, we're also very close
Speaker 7: focused on on the data. And I think there's an interesting,
Speaker 7: you know, sort of bifurcation that's happened because, on the
Speaker 7: one hand, you know, Federal Reserve officials you know, appear
Speaker 7: to be setting the markets up for potential rate hikes
Speaker 7: if inflation doesn't start.
Speaker 6: To moderate here, you know.
Speaker 7: On the other hand, we got good news on the
Speaker 7: inflation data this week, both the CPI and the pp
Speaker 7: I coming in under expectations, you know, in our own
Speaker 7: forecast is is that you will see some moderation in
Speaker 7: core inflation, which is the important one for the Fed,
Speaker 7: you know. But I've been saying this, you know, even
Speaker 7: on this program with you, Tom, that you have to
Speaker 7: keep in mind that headline inflation, you know, and thus
Speaker 7: we're going back to pre war levels on commodity prices.
Speaker 7: Headline inflation is actually likely going to dip below two
Speaker 7: percent next year. You know, so all of that sort
Speaker 7: of suggests to us that we have a fed on hold.
Speaker 7: But nevertheless, officials, you know, are certainly preparing the markets
Speaker 7: for a couple of potential.
Speaker 2: Okay, so the first derivative, inflation's coming down. There's a
Speaker 2: lot of people agree with what Tiffany just said. There
Speaker 2: are we going to see lower prices or dare I
Speaker 2: say even are we going to see level prices as
Speaker 2: we go along in time?
Speaker 7: Well, we've already seen the national app average retail gasoline
Speaker 7: price come down off of its recent peak. Now over
Speaker 7: the last few days it's it's up again as the
Speaker 7: Middle East conflict as has kind of flared up, but
Speaker 7: we are down off of the wartime peak levels. You know,
Speaker 7: we're also seeing some various food prices that are actually falling.
Speaker 7: But in general, you know, when we say inflation is
Speaker 7: coming down, you know that is the price change. And
Speaker 7: so you know, we're not expecting overall inflation in the
Speaker 7: United States to you know, to dip in a negative
Speaker 7: territory go into deflation. But we do think moderating inflation
Speaker 7: is a completely reasonable outlook to have.
Speaker 2: I mean, Tiffany gets everything, you know, she's at a
Speaker 2: restaurant seven days a week. What's the grocery shop? And
Speaker 2: look like at the satsau.
Speaker 4: Rouse, Tiffany, I have to ask you this.
Speaker 5: You know, obviously you were watching I was watching Kevin
Speaker 5: Warsh's testimony to Congress this week, and you know, some
Speaker 5: of the questionings, specifically the questioning I saw from Senator
Speaker 5: Warren regarding one hundred million dollar payments, there's some craziness.
Speaker 5: I mean, is there any validitity to that? I mean,
Speaker 5: she just kind of muck raking. I mean, what's going on,
Speaker 5: you know, underneath the surface here in terms of you know,
Speaker 5: the Senate's real acceptance of the new newfait Chairman, Well,
Speaker 5: you know.
Speaker 7: I mean certainly, you know, I mean Senator Warren, you know,
Speaker 7: will will have will have her peace to say. You know,
Speaker 7: I think what we're and certainly there could be some
Speaker 7: more that comes out on that, but I think what
Speaker 7: we're focused on at least is you know, what what
Speaker 7: sort of signals is chairwah sending in terms of how
Speaker 7: he's going to conduct monetary policy? You know, And I
Speaker 7: think the biggest emphasis that's come out since he's become chair,
Speaker 7: you know, is that he's very focused on price stability,
Speaker 7: you know, and I think that's very consistent with the
Speaker 7: other communication that we've seen from other officials to say
Speaker 7: that if you're not getting inflation that's moderating, you know
Speaker 7: that the Federal Reserve is is prepared to act, you know,
Speaker 7: and I think that, you know, this is a good
Speaker 7: focus to have, you know, in terms of the markets,
Speaker 7: you know, anchoring longer term inflation expectations are ensuring that
Speaker 7: they're anchored, you know, with this commitment to act. If
Speaker 7: inflation you know, doesn't moderate as we all expect, should
Speaker 7: actually keep longer dated interest rates anchored, right because you
Speaker 7: don't have inflation risk premiums that are getting priced into
Speaker 7: the long end of the interest rate curve.
Speaker 6: So so everything that we've heard.
Speaker 7: From Warsh in terms of his commitment to price stability,
Speaker 7: we actually think is a good thing for the bond market.
Speaker 7: You know. Now, of course, you know, there will be
Speaker 7: other questions that senators have. We'll continue to watch that
Speaker 7: as well.
Speaker 5: And Tiffany, what about the size of the Fed's balance sheet?
Speaker 5: I mean, I know we didn't really get into the
Speaker 5: thick of it during the testimony, but you know, did
Speaker 5: you get any takeaways on that on where that's headed.
Speaker 7: Well, I mean, I think there's I think this is
Speaker 7: now an open question. So the FED stopped at so
Speaker 7: called QT program quantitative tightening, where it gradually reduces its
Speaker 7: balance sheet at the end of last year, you know,
Speaker 7: and as because we saw front end interest rates, overnight
Speaker 7: rates and things like that, you know, start to start
Speaker 7: to increase to suggest that you know, reserves were coming
Speaker 7: more scarce. But ultimately we think they probably the Federals
Speaker 7: are probably can further reduce its balance sheet.
Speaker 6: And the reason is just because you have.
Speaker 7: Michelle Bowman and other bank regulators within her team that
Speaker 7: are laying the groundwork to try to relax some of
Speaker 7: the liquidity regulations and liquidity stress tests for banks and
Speaker 7: how they're implemented, and that should result in them, you know,
Speaker 7: effectively hoarding reserves less and that can mean that the
Speaker 7: Federal reserve can drain, you know. So we actually think
Speaker 7: that the Fed will probably start to reduce its balance
Speaker 7: sheet again next year as some of these policies.
Speaker 6: You know, sort of reduce bank demand for real.
Speaker 2: Okay, before you go frame up the calendar for me,
Speaker 2: I got July twenty nine with just tomorrow, and then
Speaker 2: I go to September sixteenth, which is a million years away,
Speaker 2: October twenty eighth, December nine, which meeting is Tiffany Wilding
Speaker 2: focused on done.
Speaker 7: I mean, obviously we're we're focused on all of the meetings,
Speaker 7: you know, and I think I think September, you know,
Speaker 7: is certainly one to focus on. You know. I think
Speaker 7: the interesting thing from FED speak more recently, Governor Waller
Speaker 7: in particular, you know, sort of suggested that regardless of
Speaker 7: the drivers of inflation, you know, whether they're their supply
Speaker 7: or demand related, that if they see one more strong
Speaker 7: firm inflation print, then they're sort of ready to act.
Speaker 7: So that suggests to us that even if our view
Speaker 7: is ultimately right that inflation moderates, you know, if you
Speaker 7: get one more strong print here, you know, you could
Speaker 7: certainly see them hiking as early as September, you know,
Speaker 7: But again we take a step back. We're not in
Speaker 7: a twenty two a twenty twenty two type of environment,
Speaker 7: and ultimately, you know, we think the funeral reserve, you know,
Speaker 7: isn't on course to you know, to hike dramatically here.
Speaker 7: Maybe a few if they do it. But inflation, I
Speaker 7: think is is certainly in a good place and hopefully
Speaker 7: we'll get more data, you know, to that regard moving forward.
Speaker 2: Really wonderful tivity. Well, thank you so much to pimcod
Speaker 2: this morning. Stay with us more from Bloomberg. So thats
Speaker 2: coming up after this.
Speaker 1: You're listening to the Bloomberg Surveillance Podcast. Catch us live
Speaker 1: weekday afternoons from seven to ten am Eastern Listen on
Speaker 1: Apple Karplay and Android Otto with the Bloomberg Business app,
Speaker 1: or watch us live on.
Speaker 2: YouTube in our studios in New York. Simona Macuda joins
Speaker 2: US with State Street Investment Management, their chief economist. You
Speaker 2: were in school in Romania, right, I was here, so
Speaker 2: I got to do an audible here it's Friday. I
Speaker 2: get used to it, okay, when it's when we talk
Speaker 2: about the Black Sea. What is the number one misconception
Speaker 2: Americans get wrong? Strevetas Admiral Stravitas tells me, Mania is
Speaker 2: arguably the most important territory in Eastern Europe for America.
Speaker 8: It is pretty strategic, and I think the interest in
Speaker 8: making that, you know, strategic and strong is coming from
Speaker 8: both sides.
Speaker 2: Because the water up on the seat, the naval basins
Speaker 2: and all that.
Speaker 4: Daniebe absolutely yeah.
Speaker 2: The Daniu, the Danube tour.
Speaker 5: I'm not done the Danube tour out of Romania. But
Speaker 5: here here's the thing about Romania. I mean, yields are
Speaker 5: pretty high now. I mean they've had a hike pretty
Speaker 5: pretty aggressively to offset some of the things that we've
Speaker 5: seen on the ground there domestically and real yields and
Speaker 5: Romania have collapsed. I think they're one of the few
Speaker 5: now in EM then have actually a negative real yield
Speaker 5: on to your basis. But we're not going to talk
Speaker 5: about Romania pemonia. Let's let's talk about Japan. Let's talk
Speaker 5: about funding those carry trades. And EM talked to us
Speaker 5: about the end, talk to us about you know, do
Speaker 5: you see any potential buying of jgb's by locals, repatriation
Speaker 5: of all those assets on shore?
Speaker 8: You know, that's been the story for so long. We've
Speaker 8: been talking about this, We've been afraid about this happening,
Speaker 8: and so far it's been a very slow moving kind
Speaker 8: of anyone here, right, and I think it will continue
Speaker 8: to be that incrementally, yes, because obviously you look at
Speaker 8: Japanese yields being at the levels not seen in a
Speaker 8: very very long time. There is an attraction there. But
Speaker 8: you know, these things don't happen overnight.
Speaker 5: No, they don't. But I mean, look, I'm just I'm Tom.
Speaker 5: I don't know if you caught this. The latest tik
Speaker 5: date out of the US, I mean the foreign bid
Speaker 5: specifically the bit out of Japan has collapsed, not collapsed,
Speaker 5: but it's gone down pretty pretty significantly. And so you know,
Speaker 5: these are the things that I get concerned about, right,
Speaker 5: who's going to be buying all this debt, all this issues,
Speaker 5: all this coupon, you know, issues that were expected to
Speaker 5: see from the US Treasury. And so when I ask about,
Speaker 5: you know, the Fed's balance sheet, that's the place that
Speaker 5: I think most investors, myself and are looking for if
Speaker 5: there's going to be a black swan event.
Speaker 4: Would you agree with that?
Speaker 8: I don't expect that. I mean, the concerns are valid.
Speaker 7: Right.
Speaker 8: You look around the world and tell me, where do
Speaker 8: you see a fiscal picture that actually looks good?
Speaker 4: The worst maybe Germany?
Speaker 8: And there your target. It's almost the opposite where it's
Speaker 8: almost too good for their own benefit. Right, It's a
Speaker 8: problem across the board. It's something that I think incrementally
Speaker 8: the prices get squeezed and the pen gets intensified by
Speaker 8: it's It's gonna take a while.
Speaker 6: And you know.
Speaker 8: One of the biggest lessons I learned when I came
Speaker 8: to stage draman economist. Right, I don't manage money, but
Speaker 8: I'm surrounded by all these people who do. We have
Speaker 8: six trillion under management, lots of people who manage money.
Speaker 4: There.
Speaker 8: One of the best lessons I learned from a colleague
Speaker 8: was when I was told Simona, I cannot hate everything, right,
Speaker 8: you have to own something, and in the restive.
Speaker 2: Things state Japan, because they're going to get their act together.
Speaker 8: I wouldn't say so. I would say the view is
Speaker 8: that the US dollar as a whole is in a
Speaker 8: multier depreciation cycle, and that comes from a number of places,
Speaker 8: including fixed incomon locations.
Speaker 2: I don't see that.
Speaker 8: Well, no, that's the irony of it, right, Sometimes you're
Speaker 8: the trigger of the geopolitical risk event, and yet you
Speaker 8: are the safe asset. So that's a reminder though that
Speaker 8: these things, there is value in what the US dollar offers,
Speaker 8: so incrementally it can shift in a direction, but it's
Speaker 8: going to be a slow process.
Speaker 2: I got to ask this, Can I do an audible
Speaker 2: on a Friday. Okay, you went to graduate school in
Speaker 2: a place with two of the most spiritual libraries in America.
Speaker 2: It's Suffolk in Boston, the Moakly Law Library, and there's
Speaker 2: also the ninth floor Study Lounge just down Tremont Street.
Speaker 2: Did you study in those libraries? Yes, I literally studied
Speaker 2: for half the CFA between BU and there. But they're
Speaker 2: the folks in Boston at Suffolk University. In Tremont they
Speaker 2: have built modern architecture in the old Street, these spectacularly
Speaker 2: gorgeous libraries. Nobody knows about them. Yeah.
Speaker 8: No, they are beautiful. And it's like the location, it's amazing, right,
Speaker 8: Like I always say, like, oh my god, I'm walking
Speaker 8: on history.
Speaker 2: Yeah, you're with all this history is you're with all
Speaker 2: this history in the atheneum there, and you're trying to
Speaker 2: study Friedrich Hayek out an LC over to Chicago because
Speaker 2: that's what Simona and I did. And then there's a
Speaker 2: damn sunset in your way, you know, across the Pardinal.
Speaker 2: So this is great. Can you come back again once
Speaker 2: a decade?
Speaker 8: It's not that far.
Speaker 2: On Romania her Romanian also all of her effort at
Speaker 2: State Street Investment management as well Samonama Coda, their chief economist.
Speaker 2: Stay with us more from Bloomberg Surveillance coming up after this.
Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us Live
Speaker 1: weekday afternoons from seven to ten am Eastern Listen on
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Speaker 2: And it's a good time to talk to David Katz,
Speaker 2: president's CIO Matrix Asset Advisors, because he says there's no
Speaker 2: fog to Comcast, it's the one to buy. David. Top
Speaker 2: of your list is CMCSA discuss.
Speaker 9: Basically, the company has been under some very negative trends
Speaker 9: for the last few years in terms of subscribers. Management
Speaker 9: is doing everything that they can to try to maximize
Speaker 9: or enhance shareold of value. They're going to be splitting
Speaker 9: the company up in the next twelve to eighteen months.
Speaker 9: We think the two pieces are worth well above what
Speaker 9: the combined entity is worth. We think the stock is
Speaker 9: easily worth in the mid thirties. You're getting into twenty four.
Speaker 9: You get a very good dividend while you wait, and
Speaker 9: you have a very motivated and very competent management team.
Speaker 9: To enhance shareold of value, and the stock's at about
Speaker 9: seven and a half to eight times earning, so it's
Speaker 9: just dirt cheap right Link.
Speaker 2: That over then to Netflix. I mean, mister Roberts has
Speaker 2: taken a different path as any Netflix has been a
Speaker 2: great company.
Speaker 9: They've really done well, you know, in terms of subscriber
Speaker 9: growth and in terms of revenue growth, and in light
Speaker 9: of the problems that they're having. The stock is now
Speaker 9: down to about sixteen and a half to seventeen times
Speaker 9: next year's earning.
Speaker 2: So it's on our radar.
Speaker 9: We think it's still a little bit early, but at
Speaker 9: this price you're getting a lot of the negatives in it.
Speaker 9: We think if you have a eighteen month time or
Speaker 9: is it probably is going to be okay. We're not
Speaker 9: ready to step in here.
Speaker 2: Giza rogenosin with us in a few moments here on Netflix.
Speaker 2: David Katz of Matrix Asset Advisors with Damian Sasaur.
Speaker 5: Dude, I know you think it's going to be a
Speaker 5: pretty healthier earning seasons, but you're also expecting significant volatility.
Speaker 4: Talk to us about that.
Speaker 5: I mean, is that a little bit of a taste
Speaker 5: I guess this week in terms of what we shoul
Speaker 5: can expect for the balance of July and August.
Speaker 9: We think it is We think that the numbers are
Speaker 9: going to buy and large come through good. But you're
Speaker 9: seeing stock price moves of three to seven percent if
Speaker 9: the market thinks still a little bit better than expected
Speaker 9: or a little bit worse than expected. HCA pre announced,
Speaker 9: IBM pre announced, those stocks got taken out and shot.
Speaker 9: The flip side is Avid said business wasn't as bad
Speaker 9: as people had expected, and their outlook was a little
Speaker 9: bit better than expected, and the stock was up about
Speaker 9: five or six percent. So unless you have a great
Speaker 9: conviction about what a company is going to do before
Speaker 9: they report earnings, we would not step in front of
Speaker 9: any companies this are season, assess what's happened afterwards, take
Speaker 9: a longer term perspective, but we wouldn't try to trade
Speaker 9: around or trade before our needs.
Speaker 4: What do you think about tech here?
Speaker 5: I mean, is this really a great rotation out of
Speaker 5: AI related stocks? Is there any legs to this?
Speaker 2: Is this just a thank you because Apple's hitting the
Speaker 2: record high when the rest of tech is flat on
Speaker 2: its back?
Speaker 6: Right? I mean?
Speaker 4: Is this broad based in nature?
Speaker 6: I mean?
Speaker 5: Or is as you brightly point out, is this just
Speaker 5: a little bit of blood letting, a little bit of momentum.
Speaker 9: Well, what's happened this year is the hyperscalers, the MAC seven,
Speaker 9: which had a great year last year, had a horrible
Speaker 9: six month period and actually we're down three to seven percent.
Speaker 9: Companies like Microsoft and Google and Amazon and Meta. The
Speaker 9: flip side is semiconductor companies basically melted up. That was
Speaker 9: actually the best quarter for semiconductor companies in the second
Speaker 9: quarter ever, So basically after these huge gains, the stocks
Speaker 9: are giving back some. Our expectation for the year is
Speaker 9: a lot of rotation. So you're getting rotations into Semis,
Speaker 9: out of Semis, into the hyper seeds in the Max seven.
Speaker 9: Expect that to continue. We think the best way to
Speaker 9: approach this market is take a longer term view. If
Speaker 9: you like Semis and they just sold off twenty five percent,
Speaker 9: you could add into that weakness. We actually think that
Speaker 9: the Max seven, many of them, the hyperscalers, are going
Speaker 9: to have a very good back half of the year,
Speaker 9: so we had been buying into that weakness. Then there
Speaker 9: are other sectors that you know, the consumer stables has
Speaker 9: done poorly, healthcare had done poorly. We'd be buying a
Speaker 9: number of companies there because we think when the market
Speaker 9: falls out of love with that, it's going to put
Speaker 9: that money else.
Speaker 2: Jamian one more.
Speaker 5: Yeah, I mean, look, with equity is near record levels, David,
Speaker 5: I mean, you know, market breadth has actually turned negative here, right.
Speaker 5: I mean we've seen a lot of stocks making more
Speaker 5: new lows than new highs. We've seen a lot of
Speaker 5: members trading, you know, below their fifteen two hundred day DMAs.
Speaker 5: I mean talk to us a little bit about you know,
Speaker 5: technicals here.
Speaker 9: Well, we're fundamental shops, so we can't get great insight
Speaker 9: into technicals. But on a fundamental basis, we think the
Speaker 9: market is fully priced, but there are many, many pockets
Speaker 9: of undervalue socks, and we think the key is to
Speaker 9: buy those undervalued socks with a good long term perspective.
Speaker 9: Get a lot of consumer staples like PEPSI announced startings.
Speaker 9: They were a little bit light in terms of their outlook,
Speaker 9: but it's at sixteen and a half time s earning
Speaker 9: with a four percent yield. Put money and things like that,
Speaker 9: you're going to do very well in the next twelve months.
Speaker 2: David Katz, thank you so much. Matrix Asset Advisor.
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