Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside
Speaker 1: my co host Matt Miller. Every business day, we bring
Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast
Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and
Speaker 1: at Bloomberg dot com slash podcast. So, Matt, I've got
Speaker 1: the one year chart for gold up on my Bloomberg
Speaker 1: termo here and about a year ago a u x
Speaker 1: AU currency x au absolutely uh, kind of started the
Speaker 1: year around nineteen fifty announced and here we are down
Speaker 1: just below eighteen hundred dollars announced, so you know a
Speaker 1: little bit, you know, not really showing its performance there
Speaker 1: and kind of wondering kind of what the sentiment is
Speaker 1: out there for gold. Let's bring in Everett Milman, Precious
Speaker 1: Metal Specialists for Gainesville Coins based in Gainesville, Florida. So Gainesville,
Speaker 1: Florida is University of Florida, that's right in Florida state
Speaker 1: is in Gallas, Tallahassee. Okay, I got it, um, Everett,
Speaker 1: they switch for joining us here. What is the sentiment
Speaker 1: for gold out there right now? I think we have
Speaker 1: to admit that the sentiment in the gold market has
Speaker 1: been fairly poor of late UM, and we've seen gold
Speaker 1: function more as a fear and sentiment trade rather than
Speaker 1: a truly reliable inflation hedge. As the prices are down
Speaker 1: quite a bit ear date, and in that sense, we
Speaker 1: can look at the gold price as a pretty good
Speaker 1: gauge of of risk appetite UM. Gold has been sensitive
Speaker 1: to recent economic data, so we saw a big rally
Speaker 1: on the mists and last month's non farm payrolls, and
Speaker 1: yet UM earlier this morning, with the surprise of the
Speaker 1: upside and the Empire State manufacturing survey, we saw gold
Speaker 1: pull back. So I think it's fair to say that
Speaker 1: the gold market really has ignored some of the major
Speaker 1: macro drivers like US China relations and the levels of
Speaker 1: global debt that normally have an impact on price. Those
Speaker 1: are really faded into the background during the third quarter,
Speaker 1: and so long as risk appetite remains healthy, inequity markets UM.
Speaker 1: I don't think big funds and retail investors will want
Speaker 1: to incur the opportunity cost of holding a nonproductive asset
Speaker 1: like gold. If economies are on the world do indeed
Speaker 1: recover relatively smoothly, and that makes sense, you know. Otherwise, Ever,
Speaker 1: if you look at UM rates this low, coupled with
Speaker 1: trillions and trillions and trillions of dollars of spending, a
Speaker 1: FED balance sheet doubling, and in the course of eighteen months,
Speaker 1: you would think that gold just flies on that, right,
Speaker 1: you would, You would um. Certainly the case of low
Speaker 1: interest rates for longer is a positive narrative for gold um.
Speaker 1: But it does seem that the broader markets have a
Speaker 1: conviction that the FED will be successful and threading the
Speaker 1: needle and nailing the goldilocks timing between UH tapering and
Speaker 1: raising rates not too soon or not too late eights
Speaker 1: UM and expecting the Federal Reserve to do so amid
Speaker 1: the unprecedented economic shock of a global pandemic. That does
Speaker 1: seem to be expecting a lot. But as we've seen
Speaker 1: with gold not taking off and setting new highs, that
Speaker 1: does seem to be. The expectation is that the FED
Speaker 1: will navigate a soft landing of the situation and rates
Speaker 1: will normalize, bond purchases will be tapered smoothly, and that
Speaker 1: will make it out of this without a scratch. But
Speaker 1: gold is always there, as that fear gage. As I
Speaker 1: mentioned that if all of that doesn't go according to plan,
Speaker 1: UM holding some gold does function as an insurance policy.
Speaker 1: So every I'm also looking at, you know, other precious
Speaker 1: metals like platinum and palladium, and they're down kind of
Speaker 1: you know, thirteen fourteen, fifteen, sixteen percent year to date.
Speaker 1: Is that is that simply a reflection of they're not
Speaker 1: making as many cars because of all the various chip
Speaker 1: shortages and whatnot. Yes, UM, we finally have seen prices
Speaker 1: for used cars and rental cars cool off, and there
Speaker 1: are some encouraging signs that micro chip manufacturers maybe on
Speaker 1: the cusp of catching up with demand UM, but the
Speaker 1: production stalls with the semiconductor shortage. That really was one
Speaker 1: of the main reasons that we saw palladium and platinum
Speaker 1: prices searched so high. UM. Now, with a potential surplus
Speaker 1: in palladium later this year, UM, we are seeing that
Speaker 1: swift pullback. UM. Palladium is looking to break a streak
Speaker 1: of six consecutive trading days in the red UM, but
Speaker 1: it's about thirty off its peak. UM really is all
Speaker 1: dependent on automobile demand and the fact that that is
Speaker 1: perhaps waning UM is weighing very heavily on those two metals. Well,
Speaker 1: you know, I was just at the Munich Auto Show, Everett,
Speaker 1: and it seemed to me when I was there as
Speaker 1: if the CEOs various CEOs were jockeying for position when
Speaker 1: it came to locking own supply of the materials necessary
Speaker 1: for e vs for building electric vehicles. What what do
Speaker 1: you think which commodities have the best are the most
Speaker 1: room to run in terms of EV production. So it
Speaker 1: is true that electric vehicles would perhaps uh put some
Speaker 1: damper on demand for platinum and palladium in catalytic converters.
Speaker 1: So really the commodities are metals that stand to benefit
Speaker 1: the most from that trend towards e vs would be
Speaker 1: copper and silver. UM. The average electric vehicle uses even
Speaker 1: more copper than our combustion engine or normal UM automobiles. UM,
Speaker 1: and silver plays an especially important role in that UM.
Speaker 1: It's the long term uses for silver in industry UM,
Speaker 1: particularly in the green economy, are rather bullish. UM. I
Speaker 1: think the one thing standing in the way with that
Speaker 1: really are trade relations between the U S and China
Speaker 1: and whether those medals will be able to get to
Speaker 1: market UM. To see ev production expand. But but silver
Speaker 1: really is well positioned to benefit from that if we
Speaker 1: do indeed see a pretty rapid rise in adoption of
Speaker 1: electric vehicles. Alright, just sconds Everett. What's the best metal?
Speaker 1: Long here? From your perspective over the next six twelve months,
Speaker 1: I still think silver is the best of the bunch.
Speaker 1: We have seen lag gold and perhaps UM the gold
Speaker 1: market has absorbed most of its gains that we're going
Speaker 1: to see one. I think silver still has more room
Speaker 1: to run and figures very prominently in that UM future
Speaker 1: of green energy usage. Everett. Always great to get your take.
Speaker 1: Thanks so much for joining us on the program, Everett Millman,
Speaker 1: um there he comes to us to talk about precious
Speaker 1: metals as well as sometimes crypto. We didn't hit crypto today,
Speaker 1: but from Gainesville Coins. Always great to get his inside.
Speaker 1: This is Bloomberg. Let's bring in Christina Hooper. She is
Speaker 1: chief global market strategist at Investco. They have more than
Speaker 1: one point for trillion dollars in assets under management, and
Speaker 1: she joins us out of Atlanta. Christine, I'd love to
Speaker 1: get your take first off on the US economy after
Speaker 1: we got that um more subdued inflation data yesterday. UM,
Speaker 1: how does it look to you in terms of growth
Speaker 1: and prices? Well, the more subdued inflation data really wasn't
Speaker 1: that impactful in a positive sense because we had gotten
Speaker 1: a p p I number UM that suggested we have
Speaker 1: more inflation to come. We're seeing factory gate numbers China
Speaker 1: factory gate numbers that are high. So UM, the big
Speaker 1: increase in inflation is not over. But I still have
Speaker 1: to stress that I believe it is temporary. It's just
Speaker 1: not as temporary as some would like to have it UM.
Speaker 1: So all in all, the US economy is and I
Speaker 1: believe good shape UM. And I don't think that what
Speaker 1: we're seeing in terms of of UM good initial jobless
Speaker 1: claims UM is going to stop UM is going to
Speaker 1: have any kind of impact on the set. I don't
Speaker 1: think the weak jobs report is going to have an
Speaker 1: impact on the set. I think they're going to stick
Speaker 1: with their timeline and announce the tapering the start of
Speaker 1: tapering UM next next week, and hopefully commence it soon
Speaker 1: after that. All right, So Christina, given that backdrop here, UM,
Speaker 1: you know, Matt and I were just chatting with with
Speaker 1: a guest who was suggesting that who was actually buying
Speaker 1: cyclical stocks here in in recent weeks. How do you
Speaker 1: think about kind of the equity markets here given your
Speaker 1: economic outlook, you know, kind of cyclical stocks, maybe some
Speaker 1: small cap stocks versus uh, some of the you know,
Speaker 1: tried and true growth names. That is the sixty four
Speaker 1: tho dollar question. What I think we will see is
Speaker 1: out performance by cyclicles in the next several months, but
Speaker 1: it's going to be narrow out performance because UM, we
Speaker 1: certainly have seen a very strong growthsburg UM. We're likely
Speaker 1: to see more strength in the economy this fall UM,
Speaker 1: but at a certain point that growth is going to
Speaker 1: moderate again, and so I would suspect that in advance
Speaker 1: of that UM markets will start to UM favor defensive
Speaker 1: secular growth UM. So, so in the shorter term, I
Speaker 1: think value encyclicals win not every day, UM, but but
Speaker 1: most days. I think there will be narrow out performance.
Speaker 1: And then at a certain point UM we're likely to
Speaker 1: see a shift UM with with UM more inclusive performance
Speaker 1: or in fact, at a certain point, defensive and secular
Speaker 1: growth outperforming. What do you looking for in terms of
Speaker 1: you know, the monetary side has been so important to
Speaker 1: investing until recently, not that it isn't anymore. But the
Speaker 1: fiscal side now is so key. And yet I hear
Speaker 1: so many investors saying, you know, their strategy doesn't depend
Speaker 1: on an infrastructure package or lack thereof. Well, I think
Speaker 1: we have to draw a distinction. I believe fiscal policy
Speaker 1: matters so much from main street for the economy, but
Speaker 1: in terms of markets, monetary policy, in my view, matters
Speaker 1: more so. The fact that we have an extremely accommodative
Speaker 1: set that even when tapering starts, the SAID will still
Speaker 1: be adding to its balance sheet is very positive for stocks. Yes,
Speaker 1: of course fiscal policy plays a role, but I think
Speaker 1: monetary policy plays an outsized role. UM. Now, of course,
Speaker 1: if we have all kinds of fiscal stimulus UM taken away,
Speaker 1: that can provide some hiccups. Just like UM, the lack
Speaker 1: of an infrastructure package might cause concern among investors, but
Speaker 1: I think it is not UM. It's it's misplaced because
Speaker 1: UM infrastructure spending would occur over time anyway. UM tends
Speaker 1: to be something that that happens over year over year
Speaker 1: over year. It's not like giving a one time stimulus
Speaker 1: payment or multiple stimulus payments that go into people's bank accounts.
Speaker 1: So I think infrastructure spending is important for other reasons.
Speaker 1: I think of it as government capex, UM, but it
Speaker 1: shouldn't have I don't think we should think of it
Speaker 1: as primarily fiscal stimulus that would have an immediate impact
Speaker 1: like other forms of of fiscal spending would. Christina, what
Speaker 1: are you and the portfolio managers at Investo looking at
Speaker 1: really over the next several months and quarters in terms
Speaker 1: of kind of where these markets are going to go?
Speaker 1: Is is it simply the pandemic, the virus or there
Speaker 1: other things? Well, Um, there are a few different factors
Speaker 1: at play. I would say, um that that first and foremost, UM,
Speaker 1: I think you know, the outlook is positive for the
Speaker 1: economy and markets, but there are some tail risks that
Speaker 1: we have to be aware of, even if they're low probability,
Speaker 1: because they could have a significant impact. UM. The first,
Speaker 1: of course is the resurgence of the pandemic. But when
Speaker 1: I say that, I mean a COVID nineteen variant that
Speaker 1: is not protected against by existing vaccines, and we haven't
Speaker 1: seen that yet. UM, But that to me would be
Speaker 1: a worth case scenario. I don't think it would plunge
Speaker 1: us into a deep recession like it did in the
Speaker 1: spring of because we've learned how to adapt, but it
Speaker 1: would be a real, real problem. UM. And then, of course,
Speaker 1: the other tail risk scenario is the FED policy error.
Speaker 1: I'm getting too aggressive because they're concerned about inflation. I
Speaker 1: don't see either one happening. UM. I think the Fed
Speaker 1: is is UM has taking a very measured and thoughtful approach. Christina,
Speaker 1: thank you so much again for joining us. We really
Speaker 1: appreciate you taking the time. Christina Hooper, chief market strategists
Speaker 1: globally for Investco, love getting her thoughts on the economy
Speaker 1: and on these financial markets. All right, let's talk about
Speaker 1: this market here. We've had some folks talking about maybe
Speaker 1: rotating into more cyclical names, perhaps, you know, sensing perhaps
Speaker 1: a reopening trade that's certainly worked well at times since
Speaker 1: this pandemic began. What's happening, Yeah, exactly. Let's uh check
Speaker 1: in with Chance Fanuka and he's chief investment officer at
Speaker 1: Oxbow Advisors based in I guess he's in Austin, Texas today.
Speaker 1: We're mad. I think they have a small college or
Speaker 1: university there or something. I'm not sure. Maybe play a
Speaker 1: little football. So Chance, thanks so much for joining us.
Speaker 1: Here talk to us about cyclical stocks and and maybe
Speaker 1: how they feature in what you guys are doing today
Speaker 1: at Oxbow Advisors. Sure, thanks, Paul and Matt. So what
Speaker 1: we've noticed is if you're looking to add defensives or
Speaker 1: growth stocks into your portfolio this year, the time to
Speaker 1: do that was really in the first quarter. You saw
Speaker 1: some good valuations back in March especially, but some of
Speaker 1: those defensive stocks have really taken off in the last
Speaker 1: six months. For instance, American Tower and Costco both appreciated
Speaker 1: by fifty scent. Yeah, they're there. So what we've noticed
Speaker 1: is even though the markets making record highs here in
Speaker 1: recent months, last month, the average stock in the SMPRED
Speaker 1: was down si from its fifty two week highs, and
Speaker 1: a lot of that was coming from cyclical and value sectors.
Speaker 1: As interest rates came down and the delta variants started
Speaker 1: to spread around the world, and we thought that would
Speaker 1: be a good time to start moving a little bit
Speaker 1: more of our portfolio towards cyclicals. And the three names
Speaker 1: that we came up with that we added to our
Speaker 1: client's equity portfolios last month where Salesforce Booking Holdings in Berkshire,
Speaker 1: Hathaway and so these aren't necessarily the kind of cyclicals
Speaker 1: I would think of. At least two of them are
Speaker 1: really techy, right salesforce I would considered techy. Booking is
Speaker 1: one that I would think as more of a pure
Speaker 1: consumer discretionary. If you've been following the online travel agencies Booking, Expedia,
Speaker 1: and Airbnb, along with the hotels, they've all been moving
Speaker 1: together through this pandemic. As you talked about the re
Speaker 1: reopening happening, and I think as there were concerns about
Speaker 1: the delta variant picking up in recent months, you saw
Speaker 1: those companies shares sell off and this is the one
Speaker 1: that we think is the highest quality right now, and
Speaker 1: felt it was a good time to add to the portfolio.
Speaker 1: So Chance and what are the When you think about bookings,
Speaker 1: Holdings obviously a big play on consumer travel. How much
Speaker 1: do they depend upon business travel because that seems like
Speaker 1: something that from what we're hearing, is going to be slower,
Speaker 1: much slower to come back here. I don't think it's
Speaker 1: as big of a concern for them as the global
Speaker 1: hotels that may feature more business travelers in their network.
Speaker 1: I think if you think about Booking, they actually are
Speaker 1: more exposed to Europe than their peers, and they have
Speaker 1: a lot of independent hotels in Europe that rely on
Speaker 1: Booking dot Com in order to get guests coming in
Speaker 1: on a daily basis. So I think that was part
Speaker 1: of the sell off was as the delta variants spread,
Speaker 1: especially in Europe. There are some concern in the short term,
Speaker 1: but for us, when we take a five year outlook,
Speaker 1: we would expect revenue for Booking to return to its
Speaker 1: twenty nineteen levels next year and then continue to ramp
Speaker 1: up to record high is going into When you think
Speaker 1: about sales Force, I mean, what what drives that investment?
Speaker 1: Are you? Are you seeing a lot of corporate um
Speaker 1: you know, capex increases. I think for us, the way
Speaker 1: we think about the software of the service companies is
Speaker 1: just really wanting to play along with that secular growth trend.
Speaker 1: The underlying uh markets that Salesforce operates in. Our growing
Speaker 1: tend to twenty a year, which is a nice starting point.
Speaker 1: And then you've got one of the few remaining large
Speaker 1: tech companies is still run by its founder. If you
Speaker 1: think about the really large tech businesses, there's only about
Speaker 1: three left along with Facebook and Nvidia, that are really
Speaker 1: really still run by a founder or co founder, and
Speaker 1: so you have some of with that kind of visionary mindset,
Speaker 1: uh in a strong history of making smart acquisitions. We
Speaker 1: like partnering up with someone like that, especially in an
Speaker 1: industry that's still growing at a double digit rate. Chance,
Speaker 1: when I think about Berkshire, I'm just not sure it's
Speaker 1: anything more than kind of a g d P play.
Speaker 1: I'm just not sure what the catalyst is out there
Speaker 1: for this name, barring you know, a monstrous acquisition. Um,
Speaker 1: how do you think about that in terms of catalysts. Sure,
Speaker 1: I think we viewed a little bit differently in terms
Speaker 1: of how it fits into our client's portfolio. So for us,
Speaker 1: we always a look into some counterbalances UH in the
Speaker 1: portfolio that are going to act more defensively if we
Speaker 1: get a bear market. But what we've noticed is we'd
Speaker 1: rather own something like Berkshire Hathaway. They can provide that
Speaker 1: sort of GDP growth plus share buybacks which have picked
Speaker 1: up in the last two years, compared to owning something
Speaker 1: like Johnson and Johnson and nest Lee that maybe a
Speaker 1: stalwart in a defensive environment, but really are not going
Speaker 1: to participate in an economic reopening like we might have
Speaker 1: over the next couple of years. Are you expecting real
Speaker 1: fiscal stimulus? Are you expecting the infrastructure, build the passes
Speaker 1: that does that play doesn't matter not so much to us.
Speaker 1: I don't think we're ever trying to get ahead of
Speaker 1: any sort of political dynamics in the shorter term. If
Speaker 1: they happen to benefit the companies that we do own,
Speaker 1: that's terrific. But we're looking more to try and own
Speaker 1: anything for five even ten years, and so usually we're
Speaker 1: looking for companies that are going to benefit from more
Speaker 1: structural growth trends and are less reliant on political outcomes,
Speaker 1: working to their to their favor. All right, Chance, thanks
Speaker 1: so much for joining us. Oh, it's great to get
Speaker 1: your insight. Chance for nuke In there is a chief
Speaker 1: investment officer at Oxbow Advisors talking about moving into three
Speaker 1: cyclical stocks that they have um bought in August, Salesforce,
Speaker 1: dot Com, Booking Holdings in Berkshire, Hathaway, really really interesting moves.
Speaker 1: As we saw this, the rotation kind of peter out,
Speaker 1: and now we're hearing from others including Marco Marko Kolanovitch.
Speaker 1: As I said from JP Morgan that it's time for
Speaker 1: the re reopening trade, get back into those cyclicals. All right,
Speaker 1: So as we think about these equity markets here, we
Speaker 1: know folks are thinking about re reopening of the economy,
Speaker 1: if you will, and do I take on some more
Speaker 1: cyclical risk or do I stick with the tried and
Speaker 1: true growth stories that give me both top line and
Speaker 1: bottom line and growth. Let's bring in Adam Kuhn's portfolio
Speaker 1: manager and trade were Winthrop Capital. They are based in Indianapolis, Indiana.
Speaker 1: Talk about the heartland there outstanding. So Adam, thanks so
Speaker 1: much for joining us here. What camp do you come
Speaker 1: down in here? There's a lot of folks that have
Speaker 1: done really well with kind of that reopening trade. Where
Speaker 1: where are you guys thinking right now? Yeah? For something's
Speaker 1: having me? Yeah. Really, what we're looking at is from
Speaker 1: a top down approach is where is the economy heading?
Speaker 1: And we're seeing a lot of signs of the slowdown
Speaker 1: And um, you're gonna start to hear this word throwing
Speaker 1: around quite a bit, but it absolutely looks like we're
Speaker 1: seeing signs of stagflation where inflation is remaining high, yet
Speaker 1: growth is beginning to slow and in some pockets dramatically.
Speaker 1: And because of that, we are pulling back on the
Speaker 1: you know, reflation COVID affected industry trade and moving back
Speaker 1: towards the more tried and true names like Apple, Microsoft,
Speaker 1: and Alphabet that you know, just have great cash flow,
Speaker 1: a great business model that can sustain through you know,
Speaker 1: a lot of volatility and economic headplines. The second time
Speaker 1: I've heard someone talk about stagflation this week. Um, even
Speaker 1: though we got a more subdued inflation number and the
Speaker 1: last UH data release, are you the growth slowdown is
Speaker 1: what is? What is? What? It looks scary to me?
Speaker 1: Are you concerned that the growth slowdown we're seeing in
Speaker 1: the third quarter is going to continue on? Yeah? So,
Speaker 1: you know, while we did get a slow down in inflation,
Speaker 1: if you look at UH average hourly earnings, they're still
Speaker 1: above four percent. So if you're paying employees more and
Speaker 1: you're still seeing a lot of jobs that are unfilled
Speaker 1: total job openings, is that a record high? Um? So,
Speaker 1: I think you're gonna see employees continue to be paid
Speaker 1: quite a bit. So you're gonna see savings rates continue
Speaker 1: to be high, and effectively, if they can spend the money,
Speaker 1: they will, and that's going to keep inflation higher in
Speaker 1: the short term. Um. But the problem is that that
Speaker 1: where can they spend their money? And we're seeing supply
Speaker 1: chain issues continue uh to pick up, and frankly, there's
Speaker 1: just not a lot that consumers can spend the money
Speaker 1: on um outside of just the traditional things that they buy.
Speaker 1: So heading into the holiday season, it might not be
Speaker 1: a story of what can consumers buy and it's what
Speaker 1: what is it actually a bailable So I think what
Speaker 1: we're going to see is this kind of dislocation of
Speaker 1: what consumers are have the ability to buy from a
Speaker 1: from a financial standpoint, and what they can physically go
Speaker 1: and find in the store or online. And so I
Speaker 1: think that's gonna be a reduction to growth and I
Speaker 1: think that's why we're going to see the fourth quarter
Speaker 1: be quite a bit slower than what we're expecting. All Right,
Speaker 1: So if you're focusing on some of the higher growth,
Speaker 1: you know, perhaps to the technology sector, talk to us
Speaker 1: about valuation here because that's always a challenge for people
Speaker 1: in that space. But what is your view of valuation
Speaker 1: as you take a look at some of these uh,
Speaker 1: fast growing tech names. Yeah, so we're careful not to
Speaker 1: throw around, uh you know, this time is different anything
Speaker 1: like that. Evaluation since then the day absolutely matters, but
Speaker 1: low interest rates do help the case for higher multiples.
Speaker 1: So we generally think that a lot of these technology
Speaker 1: stocks that I just mentioned earlier are fairly valued. We
Speaker 1: would not call them over valued in in any way.
Speaker 1: When you get the growth potential in the way that
Speaker 1: they're able to monetize just different businesses, we think that
Speaker 1: these valuations do make sense, So that's why we're still
Speaker 1: investing in them. But what we're doing is when we're
Speaker 1: looking for value is we've begun to add to Chinese
Speaker 1: technology companies, So companies like Buy Do, ten Cent, Ali Baba.
Speaker 1: You know, they've been in the headlines recently, and obviously
Speaker 1: these are stocks that have been beaten down quite a bit,
Speaker 1: and for good reason with increased regulation out of China.
Speaker 1: But we think right here in this spot that that
Speaker 1: the valuations for those companies actually look attractive. So using
Speaker 1: those alongside the traditional US counterparts we think makes sense
Speaker 1: going forward. What UM industry groups do you like or
Speaker 1: where do you see the most value out there that
Speaker 1: that maybe is underpriced. So I'll reiterate Chinese technology absolutely
Speaker 1: the place where we think that that stocks are underpriced
Speaker 1: outside of that not a lot. We think that the
Speaker 1: market generally speaking is fairly valued to overvalued. When you
Speaker 1: look at financials and energy, we would argue those are
Speaker 1: are grossly overvalued giving the prospects for for growth going forward. UM,
Speaker 1: So it's more of a play of moving towards defense
Speaker 1: when there's not a lot of investment opportunities, and that's
Speaker 1: what we're doing across our portfolios is broadly speaking, moving
Speaker 1: up in quality, moving more defensive, just kind of weather
Speaker 1: this growth storm. All right, great to get your take.
Speaker 1: Thanks so much, Um for joining us talking. They're about
Speaker 1: what's going on in these markets from the perspective of
Speaker 1: a trader. Adam Coon's there from Winthrop Capital Management. Thanks
Speaker 1: for listening to the Bloomberg Markets podcast. You can subscribe
Speaker 1: and listen to interviews with Apple Podcasts or whatever podcast
Speaker 1: platform you prefer. I'm Matt Miller. I'm on Twitter at
Speaker 1: Matt Miller nineteen seven twenty three and on false Sweeney
Speaker 1: I'm on Twitter at pt Sweeney. Before the podcast, you
Speaker 1: can always catch us worldwide at Bloomberg Radio.