RUSH TRANSCRIPT Charles Cheryl ░░░░░░░░ got a feel they ░░░░░░░░ Investors though are of ░░░░░░░░ eagerly awaiting these plans ░░░░░░░░ more what it could ░░░░░░░░ I want to bring ░░░░░░░░ strategic partners Mark Tepper ░░░░░░░░ Courtney Dominguez senior advisor ░░░░░░░░ payne capital management a ░░░░░░░░ I m not affiliated ░░░░░░░░ Courtney it is hard ░░░░░░░░ to imagine president elect ░░░░░░░░ not throwing in everything ░░░░░░░░ I say everything I ░░░░░░░░ the kitchen sink Initial ░░░░░░░░ claims back also up ░░░░░░░░ a million I can ░░░░░░░░ believe with that what ░░░░░░░░ happening down in Congress ░░░░░░░░ would get a lot ░░░░░░░░ pushback now That already ░░░░░░░░ priced into the bond ░░░░░░░░ If you look at ░░░░░░░░ 10 year treasury at ░░░░░░░░ Charles I have to ░░░░░░░░ you credit back in ░░░░░░░░ fall you and I ░░░░░░░░ talking about this on ░░░░░░░░ show You called treasurys ░░░░░░░░ up to 1 So ░░░░░░░░ were exactly right there ░░░░░░░░ I m glad you ░░░░░░░░ Treasuries is about double ░░░░░░░░ early October so that ░░░░░░░░ quite a move in ░░░░░░░░ 1 doesn t seem ░░░░░░░░ high but what that ░░░░░░░░ pricing in we re ░░░░░░░░ and inflation nary period ░░░░░░░░ because of extra spending ░░░░░░░░ the government stimulus being ░░░░░░░░ big portion of that ░░░░░░░░ I find kind of ░░░░░░░░ sorry Charles no problem ░░░░░░░░ me bring in mark ░░░░░░░░ a moment Because that ░░░░░░░░ the question if inflation ░░░░░░░░ moving ahead of the ░░░░░░░░ then maybe that alters ░░░░░░░░ they have to say ░░░░░░░░ your thoughts on this ░░░░░░░░ package itself mark Yeah ░░░░░░░░ far as the stimulus ░░░░░░░░ goes Charles look we ░░░░░░░░ talking trillions and trillions ░░░░░░░░ dollars It is likely ░░░░░░░░ go through Biden has ░░░░░░░░ couple options He can ░░░░░░░░ the bipartisan approach or ░░░░░░░░ reconciliation route Really either ░░░░░░░░ the consumer is still ░░░░░░░░ to bet paid Consumer ░░░░░░░░ likely to get 2000 ░░░░░░░░ re likely to pass ░░░░░░░░ extension of unemployment benefits ░░░░░░░░ well When you look ░░░░░░░░ the stock market all ░░░░░░░░ usual suspects will probably ░░░░░░░░ right People will take ░░░░░░░░ money go to Walmart ░░░░░░░░ Amazon Home Depot best ░░░░░░░░ places like that but ░░░░░░░░ think there is a ░░░░░░░░ of pent up demand ░░░░░░░░ travel right I think ░░░░░░░░ is certainly an opportunity ░░░░░░░░ play this through specifically ░░░░░░░░ airlines Charles all right ░░░░░░░░ I mentioned Jay Powell ░░░░░░░░ he was speaking He ░░░░░░░░ speaking at 12 30 ░░░░░░░░ the market just sort ░░░░░░░░ watching it tick by ░░░░░░░░ because recently you had ░░░░░░░░ many as ford fed ░░░░░░░░ who talked openly about ░░░░░░░░ possibility of tapering Of ░░░░░░░░ the Fed had been ░░░░░░░░ you know they didn ░░░░░░░░ want to Now some ░░░░░░░░ the comments he said ░░░░░░░░ were interesting Including he ░░░░░░░░ they wouldn t hike ░░░░░░░░ there was quote troubling ░░░░░░░░ Mark start with you ░░░░░░░░ this Commodities have gone ░░░░░░░░ a lot higher since ░░░░░░░░ started talking The market ░░░░░░░░ to drift Yeah Charles ░░░░░░░░ is it Does the ░░░░░░░░ not believe that Powell ░░░░░░░░ company can do what ░░░░░░░░ want to do Or ░░░░░░░░ they will be forced ░░░░░░░░ taking away the punch ░░░░░░░░ and if so this ░░░░░░░░ tantrum could be the ░░░░░░░░ beginning of something uglier ░░░░░░░░ could be You know ░░░░░░░░ fact that yields have ░░░░░░░░ low that is what ░░░░░░░░ us with the whole ░░░░░░░░ trade there is no ░░░░░░░░ or you go into ░░░░░░░░ If yields go up ░░░░░░░░ courtney said they basically ░░░░░░░░ since October that starts ░░░░░░░░ change things Valuations about ░░░░░░░░ and interest rates When ░░░░░░░░ rates go up valuations ░░░░░░░░ down Charles there is ░░░░░░░░ concept equity risk premium ░░░░░░░░ the earnings yield on ░░░░░░░░ S P minus the ░░░░░░░░ year treasury it measures ░░░░░░░░ relative value of stocks ░░░░░░░░ bonds Right now it ░░░░░░░░ 225 basis points When ░░░░░░░░ is in the 200 ░░░░░░░░ 300 range the 12 ░░░░░░░░ forward return on S ░░░░░░░░ is about 11 If ░░░░░░░░ drops down to the ░░░░░░░░ to 200 range we ░░░░░░░░ only 25 basis points ░░░░░░░░ the 12 month forward ░░░░░░░░ comes all the way ░░░░░░░░ to 5 That is ░░░░░░░░ big difference that could ░░░░░░░░ this market rally Charles ░░░░░░░░ courtney we re going ░░░░░░░░ get earnings Earnings season ░░░░░░░░ tomorrow Big four banks ░░░░░░░░ reporting Thoughts on those ░░░░░░░░ more specifically as Wall ░░░░░░░░ braces for year over ░░░░░░░░ big declines I would ░░░░░░░░ this is an opportunity ░░░░░░░░ corporate America to give ░░░░░░░░ better guidance as well ░░░░░░░░ much so yeah The ░░░░░░░░ is always the most ░░░░░░░░ when it comes to ░░░░░░░░ season but I m ░░░░░░░░ optimistic especially with the ░░░░░░░░ which are leading off ░░░░░░░░ and this is something ░░░░░░░░ ve been talking about ░░░░░░░░ have actually been outperforming ░░░░░░░░ at values sis calls ░░░░░░░░ been outperforming the last ░░░░░░░░ I argue that is ░░░░░░░░ beginning We ll continue ░░░░░░░░ see the rotation happening ░░░░░░░░ interest rates rise we ░░░░░░░░ been talking about that ░░░░░░░░ be a good thing ░░░░░░░░ the banks it will ░░░░░░░░ their margins at the ░░░░░░░░ of the day I ░░░░░░░░ think as an investor ░░░░░░░░ want to see to ░░░░░░░░ if interest rates are ░░░░░░░░ up It is anti ░░░░░░░░ trade Look for banks ░░░░░░░░ opportunities Charles we ll ░░░░░░░░ a lot more tomorrow ░░░░░░░░ That will be a ░░░░░░░░ big day Mark courtney ░░░░░░░░ you both very much ░░░░░░░░ appreciate it.