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Speaker 1: Danna Diary is our guest for the half hour. She

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Speaker 1: is the co c i O at invest Net, joining

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Speaker 1: from just outside of Philadelphia. Dana, thanks for being with us.

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Speaker 1: Talk to me a little bit about what you saw

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Speaker 1: in markets today. A lot of strength and retail stocks.

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Speaker 1: We also had leisure shares performing very well. Are you

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Speaker 1: a buyer of equities right now in the US? Yeah? Look,

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Speaker 1: I think markets have been on such a tear and

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Speaker 1: it's it's interesting to me. I mean just looking at

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Speaker 1: the last month and how much we've clawed back from

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Speaker 1: what we lost over the course of the year. Um,

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Speaker 1: I don't think it means we're out of the woods completely.

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Speaker 1: But if you're a long term you know in your

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Speaker 1: thinking for sure, I mean, any time is a good

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Speaker 1: time to buy, I'll put it that way. Certainly, not um, certainly,

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Speaker 1: not for the reason though that you think that, hey,

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Speaker 1: we're past all of you know, the negatives. So in

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Speaker 1: terms of negatives, how do you view the station risk now?

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Speaker 1: Is it different to what you might have thought a

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Speaker 1: couple of months ago? You know, I think the picture is,

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Speaker 1: you know, slightly more positive, right, I think things are

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Speaker 1: a bit on the uptick. Um, it doesn't mean though,

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Speaker 1: you know, so I say that with the caveat kind

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Speaker 1: of being more where I would focus energy, and that

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Speaker 1: is that inflation is still terribly high. We were all

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Speaker 1: very happy to see, you know, a miniscule reduction, but

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Speaker 1: let's face it, compared with the bed Pond's rate, it's

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Speaker 1: still extremely high. The fad you're gonna have to continue

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Speaker 1: with rate increases. We're housing kind of continue to get hammered. Um.

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Speaker 1: You know, New York said manufacturing down, So we're seeing

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Speaker 1: these issues with growth and um payrolls reports still good,

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Speaker 1: so that sort of empowers the had said to continue

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Speaker 1: with I think rate hikes. So yes, slightly more positive

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Speaker 1: picture on the momentum in the stop market and investor

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Speaker 1: um sentiment there. But at the end of the day,

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Speaker 1: I think we've got rocky roads still ahead, so we're

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Speaker 1: getting a bit of a relief. Would have would appear

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Speaker 1: to be a little bit of relief from the pullback

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Speaker 1: in energy prices. Does that cause you to be a

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Speaker 1: little more bullish, let's say, or are you concerned that

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Speaker 1: there's going to be a lot of volatility in the

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Speaker 1: energy market going forward? Yeah? You know what the problem

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Speaker 1: is when you see something um in inflation that is

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Speaker 1: actually tapering a bit. The problem though, is that we

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Speaker 1: still have kind of this um relentless drive off of

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Speaker 1: some of the you know, rents and food. So I'm

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Speaker 1: not you know, the the energy. The reduction we're seeing

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Speaker 1: an energy I think is a good thing, but we

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Speaker 1: need to see that going across more of the core

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Speaker 1: CPI before we can you know, kind of say okay,

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Speaker 1: we might be past the worst of inflation. And Dania,

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Speaker 1: we had a bit of disappointing data out of China

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Speaker 1: this week, industrial production, retail sales, both amiss. I'm just

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Speaker 1: wondering what your outlook is for Chinese growth and more

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Speaker 1: broadly of what the implications in terms of an economic

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Speaker 1: drag globally. Yeah, it's some interesting to be revisiting this.

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Speaker 1: I remember one of the last discussions I had um

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Speaker 1: on Bloomberg Radio was regarding China and here we are again,

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Speaker 1: and the question was, Hey, it's China investable and you know,

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Speaker 1: look like things we're working out, you know a little

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Speaker 1: bit or at least some of the trouble subsiding, and

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Speaker 1: now we're in a situation where literally we're struggling to

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Speaker 1: have audits, you know, with some of these companies. And

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Speaker 1: to your point, Um, you know, China has really been

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Speaker 1: UH key to globalization, outsourcing, etcetera. So I think it

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Speaker 1: is troublesome. It's not not only for emerging market indexes,

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Speaker 1: which now you're increasingly seeing options to invest x China there,

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Speaker 1: but you know globally Yeah, I mean the story or

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Speaker 1: the conversation around decoupling is becoming a lot more intense.

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Speaker 1: You you spoke of the D listing. You have five

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Speaker 1: state owned companies in the last week notifying UH markets

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Speaker 1: that they will essentially remove them their A d R

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Speaker 1: s from trading here in the US. When it comes

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Speaker 1: to the notion of decoupling and the reshoring of certain

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Speaker 1: enterprises that have really been a part of the manufacturing

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Speaker 1: economy in China, is that a play that you're investing

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Speaker 1: in right now? And I'm thinking not that we think

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Speaker 1: of me Conductor manufacturing is a is a China's story.

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Speaker 1: I mean, that's part of the Inflation Reduction Act. Um, well,

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Speaker 1: it's the separate act, I should say, the Chips Act.

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Speaker 1: But there seems to be a lot more emphasis on

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Speaker 1: this reassuring story. Is that something that you're buying into

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Speaker 1: and investing in We we certainly see that, um, you know,

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Speaker 1: and we're strategic in our investments, so we wouldn't take

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Speaker 1: a tactical um push on something like that. But I

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Speaker 1: would say to you that you know, sustainable investing is

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Speaker 1: very big and growing on our platform, and you know

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Speaker 1: there's certainly connections to this, right, this idea of decoupling,

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Speaker 1: this idea that, um, we have to be energy independent,

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Speaker 1: and you know, say what you will about the Inflation

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Speaker 1: Reduction Act and you know the name of it and

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Speaker 1: what it has to do with that, uh, not not clear.

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Speaker 1: But what is clear is that clean energy is a winner.

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Speaker 1: And I think clean energy is a part of this

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Speaker 1: decoupling story in terms of the Inflation Reduction Act. Clearly

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Speaker 1: one of the key motivations there is making life a

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Speaker 1: little bit easy for the American consumer and tax pay

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Speaker 1: What what does consumer health look to you like at

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Speaker 1: the moment, Well, you know some of these so certainly, um,

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Speaker 1: we're still getting sort of mixed results on consumer sentiment. Obviously,

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Speaker 1: today was interesting with retail sales and it looks like, oh,

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Speaker 1: we're you know a little bit coming out of the woods, right, Um,

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Speaker 1: some positivity showing up in earnings. I think what we

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Speaker 1: saw this earning season was it was a little better

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Speaker 1: than we thought it would be, and actually I'll say

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Speaker 1: maybe significantly better than we thought. But we've also seen,

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Speaker 1: you know, a lot of concern about what the forward guidances,

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Speaker 1: and so it suggests that three may not look as good.

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Speaker 1: So you know, we give and take care, right, But

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Speaker 1: in terms of the act that us I think, you know,

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Speaker 1: clean energy, yes, um, inflation reduction probably you know, not

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Speaker 1: not so much of a great link there, um from

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Speaker 1: our perspective. So, Dana, then when you look at the U. S.

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Speaker 1: Treasury curve being inverted the way that it is right now,

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Speaker 1: are you thinking that, hey, it's inevitable that we're going

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Speaker 1: to have a recession and the Fed may have no

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Speaker 1: choice but to create one to get inflation under control.

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Speaker 1: Or is there a chance that we're going to get

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Speaker 1: a soft landing. There's always a chance. I think the

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Speaker 1: vetting money probably is that if we're not already technically

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Speaker 1: in a recession, that um, we probably have to end

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Speaker 1: up there to a certain extent. I mean, job markets

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Speaker 1: generally have to be um worse off than they are

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Speaker 1: for us to be in recession. So you know, it's hard,

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Speaker 1: it's hard to say, well, we definitely right. We we

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Speaker 1: had a payoad support that was still very strong. Um.

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Speaker 1: But you know, if if you're saying we're the odds,

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Speaker 1: odds are probably you know, the Fed still has to

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Speaker 1: increase rates, you know, and we have a long way

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Speaker 1: to go to have parody between inflation and um interest

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Speaker 1: rates very quickly. Dana Tane seconds, the market priceton FID

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Speaker 1: moves accurately at the moment um. Uh yeah, I mean

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Speaker 1: it's it's binary and it's not a ten second answers. Sorry,

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Speaker 1: you know, it's binary to the extent it can right, Um,

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Speaker 1: possible outcome of one price, all right, thanks so much.

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Speaker 1: Dana Yoria co c Io at Investment