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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Single best idea and the single best idea is we

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Speaker 2: understand it's a grind. We do economics, finance, investment, and

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Speaker 2: international relations. There's high points, there's big interviews and all that,

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Speaker 2: but part of it is just going from conversation to

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Speaker 2: conversation with the many different opinions about where the market's going.

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Speaker 2: We pay a little attention to who gets things right,

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Speaker 2: but we really pay attention and study who got things wrong.

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Speaker 2: It's something we're constantly dealing with and today was just

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Speaker 2: an absolutely vintage day of different opinions. Anastasia Amorosa with

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Speaker 2: us from Partners Group, many many others. Mike Wilson stopped

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Speaker 2: by from Morgan Stanley. He was a Pinata two years

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Speaker 2: ago on should you be in the market not be

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Speaker 2: in the market. He sees a new bull market here,

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Speaker 2: Wilson of Morgan Stanley.

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Speaker 1: As usual, the markets get ahead of this and what

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Speaker 1: the markets are anticipating now, the bond market and the

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Speaker 1: equity markets that the Fed will be cutting sometime in

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Speaker 1: the next you know, two to six months, and you know,

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Speaker 1: even our house call, I mean our house calls for

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Speaker 1: no cuts this year, but then they have seven cuts

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Speaker 1: next year. I mean, that's like wildly bullish for equities. Okay,

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Speaker 1: so you know it's you almost had the perfect setup, Tom,

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Speaker 1: because what you have now is lagging economic data, which

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Speaker 1: is what the FED uses to make decisions, and you

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Speaker 1: have you already have the equity market and earning visions

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Speaker 1: telling you what's going to happen. So you know, they're

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Speaker 1: looking backwards and they're going to be looking at lagging

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Speaker 1: labor data, you know, and then of course lagging inflation data,

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Speaker 1: which should come down ultimately later this year next year,

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Speaker 1: and they're going to cut into that and but the

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Speaker 1: but you know, there's not going to be a knock

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Speaker 1: on negative effect for earnings revisions in the way that

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Speaker 1: people kind of assume when you get that sort of

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Speaker 1: decline in labor data. In fact, I would argue, because

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Speaker 1: it's gradual that we're going to see revisions go up,

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Speaker 1: because you know, when companies reduce headcount, it actually accrues

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Speaker 1: to margins.

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Speaker 2: Mike Wilson, there, Morgan Stanley, that's a very important observation.

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Speaker 2: Have we even framed out the caution that we'll see

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Speaker 2: in September thirty ending quarter Q three and as we

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Speaker 2: go to the beginning of the year's earning season, call

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Speaker 2: it you know, October sixteen, seventeenth, eighteenth and tech earnings

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Speaker 2: October thirty, whatever those dates are. It's just fascinating to

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Speaker 2: see if we get the reticence again, no growth, low

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Speaker 2: single digit growth, mid single digit growth. Oops, once again

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Speaker 2: a better than good quarter. Joining us Darryl Krunk from

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Speaker 2: Wills Fargo. He's really really good at historic perspective. Just

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Speaker 2: can't say enough about the joy the density of his excellence.

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Speaker 2: Here's Daryl Krunk of Wills Fargo.

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Speaker 3: I am elated about earnings, right, I mean, so we've

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Speaker 3: been waiting through twenty three twenty four earning SketchUp with

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Speaker 3: multiple expansion. I mean remember and recall first quarter earnings

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Speaker 3: S and B seven percent revenue growth, fifteen percent earnings.

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Speaker 3: This morning we're tracking six percent revenue growth, ten percent earnings.

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Speaker 2: Right.

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Speaker 3: I will take that all day long.

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Speaker 2: Right.

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Speaker 3: The margins are still holding up, so you're not seeing

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Speaker 3: the erosion in margin deterioration that everybody was concerned about

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Speaker 3: with higher prices. In the pass through effects yet of tariffs.

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Speaker 3: Maybe they come in the back half of the year

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Speaker 3: where we would stay away from We've just been bearish

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Speaker 3: on small caps for a long time. I mean, it's

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Speaker 3: interesting if you go back three years from right now

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Speaker 3: and I invested in a money market fund at four percent,

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Speaker 3: I outperformed small caps over the last three years.

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Speaker 2: Joel Crack. There, it's an important observation there. It's done

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Speaker 2: money market We ever heard that from Russ Kostriche today

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Speaker 2: and Matt Brill as well. This idea of get the coupon,

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Speaker 2: get some total return, the low yield days are over,

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Speaker 2: and the total return, the risk adjusted total return rather

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Speaker 2: in bonds is something to study, to study as well

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Speaker 2: in our podcasts across the nation on Apple podcasts and Spotify.

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Speaker 2: Joe Wisenthal Tracy Alloway number one for Apple podcasts yesterday

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Speaker 2: off their magnificent New York Times article that's odd lots.

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Speaker 2: We're on YouTube podcasts at single best idea