RUSH TRANSCRIPT Per share ░░░░░░░░ dollars 0 88 on ░░░░░░░░ of about 9 billion ░░░░░░░░ the quarter So we ░░░░░░░░ bring you those results ░░░░░░░░ course when it crossed ░░░░░░░░ s turn back to ░░░░░░░░ major indexes for now ░░░░░░░░ me is Patrick Healy ░░░░░░░░ and she s in ░░░░░░░░ officer palomar financial Patrick ░░░░░░░░ so much for coming ░░░░░░░░ the show a rough ░░░░░░░░ in the stock market ░░░░░░░░ couldn t quite make ░░░░░░░░ their mind in the ░░░░░░░░ few hours of trade ░░░░░░░░ what s your reaction ░░░░░░░░ the stock market lower ░░░░░░░░ Whenever there s a ░░░░░░░░ it s man or ░░░░░░░░ the CPI print in ░░░░░░░░ market you can see ░░░░░░░░ lot of volatility and ░░░░░░░░ know a tug of ░░░░░░░░ so to speak with ░░░░░░░░ to stay with the ░░░░░░░░ they come in with ░░░░░░░░ testimony is going to ░░░░░░░░ 8 look I think ░░░░░░░░ fact that libert on ░░░░░░░░ the expectations were for ░░░░░░░░ great move But I ░░░░░░░░ the testimony from Chair ░░░░░░░░ later in the day ░░░░░░░░ really what some thought ░░░░░░░░ of course on higher ░░░░░░░░ rates expected on the ░░░░░░░░ What s the outlook ░░░░░░░░ the stock market I ░░░░░░░░ this is a bit ░░░░░░░░ a dire picture said ░░░░░░░░ now wondering if we ░░░░░░░░ retest those mid June ░░░░░░░░ Good question The reality ░░░░░░░░ starting to set in ░░░░░░░░ we re not at ░░░░░░░░ end terms of the ░░░░░░░░ rate hikes and and ░░░░░░░░ think that chair power ░░░░░░░░ reiterated this afternoon What ░░░░░░░░ m telling clients with ░░░░░░░░ s going to be ░░░░░░░░ for a while until ░░░░░░░░ see CPI kind of ░░░░░░░░ law and a pause ░░░░░░░░ interest rate moves by ░░░░░░░░ and just expect that ░░░░░░░░ of volatility persists and ░░░░░░░░ just kind of have ░░░░░░░░ sit tight and be ░░░░░░░░ I do think that ░░░░░░░░ there is a leveling ░░░░░░░░ I will see a ░░░░░░░░ rally But I just ░░░░░░░░ t know when that ░░░░░░░░ Right so what does ░░░░░░░░ mean for the economy ░░░░░░░░ mean could we actually ░░░░░░░░ based on the Fed ░░░░░░░░ economic projections It seems ░░░░░░░░ we re just on ░░░░░░░░ cuts Yeah I think ░░░░░░░░ lot of market participants ░░░░░░░░ it that we re ░░░░░░░░ in a recession And ░░░░░░░░ know the data comes ░░░░░░░░ a lab I do ░░░░░░░░ the Fed has kind ░░░░░░░░ consent and that we ░░░░░░░░ going to be in ░░░░░░░░ and they re trying ░░░░░░░░ make it a soft ░░░░░░░░ if possible make that ░░░░░░░░ jobs It s balancing ░░░░░░░░ inflation without trying to ░░░░░░░░ the economy into a ░░░░░░░░ recession And other kind ░░░░░░░░ walking that I brought ░░░░░░░░ Look the challenge here ░░░░░░░░ the said is that ░░░░░░░░ does have tools as ░░░░░░░░ s saying to try ░░░░░░░░ bring down inflation by ░░░░░░░░ demand higher interest rates ░░░░░░░░ the real reality here ░░░░░░░░ that it is a ░░░░░░░░ supply and the Fed ░░░░░░░░ can t go to ░░░░░░░░ and change a child ░░░░░░░░ the row Covid tolerance ░░░░░░░░ and as we saw ░░░░░░░░ the spring led to ░░░░░░░░ four week shutdown of ░░░░░░░░ more than 20 million ░░░░░░░░ living there and a ░░░░░░░░ component of the global ░░░░░░░░ chain What does the ░░░░░░░░ supply chain pose here ░░░░░░░░ terms of a risk ░░░░░░░░ that may be out ░░░░░░░░ the Fed s control ░░░░░░░░ it s a great ░░░░░░░░ and it s true ░░░░░░░░ live in a global ░░░░░░░░ and that there are ░░░░░░░░ products that we source ░░░░░░░░ overseas that were largely ░░░░░░░░ know palm producers in ░░░░░░░░ countries and they may ░░░░░░░░ different policies around Covid ░░░░░░░░ national defense and production ░░░░░░░░ and was somewhat subject ░░░░░░░░ those unless we want ░░░░░░░░ domesticate some of that ░░░░░░░░ it s even feasible ░░░░░░░░ usually that s something ░░░░░░░░ Is is in the ░░░░░░░░ years in advance not ░░░░░░░░ you can just flip ░░░░░░░░ switch overnight So the ░░░░░░░░ is doing what they ░░░░░░░░ they have tools as ░░░░░░░░ as you pointed out ░░░░░░░░ rate Balance sheet as ░░░░░░░░ also the red are ░░░░░░░░ trying to control the ░░░░░░░░ a lot with but ░░░░░░░░ they re signaling a ░░░░░░░░ that their views around ░░░░░░░░ rate hike And so ░░░░░░░░ s what they can ░░░░░░░░ Largely the fiscal policy ░░░░░░░░ our countries outside of ░░░░░░░░ control and stuff that ░░░░░░░░ on globally as well ░░░░░░░░ well so we re ░░░░░░░░ of that a price ░░░░░░░░ in that regard You ░░░░░░░░ Americans should prepare for ░░░░░░░░ lies ahead Patrick I ░░░░░░░░ it does seem as ░░░░░░░░ inflation is going remain ░░░░░░░░ at least through the ░░░░░░░░ of the year and ░░░░░░░░ job cuts might be ░░░░░░░░ as well based on ░░░░░░░░ we heard from Fletcher ░░░░░░░░ pow this afternoon Yes ░░░░░░░░ I do expect inflation ░░░░░░░░ food prices to persist ░░░░░░░░ a while and that ░░░░░░░░ what his people the ░░░░░░░░ is that everybody has ░░░░░░░░ either family and so ░░░░░░░░ be very diligent around ░░░░░░░░ shopping and I think ░░░░░░░░ growth rate I chair ░░░░░░░░ that this afternoon I ░░░░░░░░ the market is also ░░░░░░░░ pricing that anticipating but ░░░░░░░░ we re in going ░░░░░░░░ be they were hopefully ░░░░░░░░ s a soft landing ░░░░░░░░ you think that labor ░░░░░░░░ it s going to ░░░░░░░░ some some future unemployment ░░░░░░░░ might be what we ░░░░░░░░ to kind herbs on ░░░░░░░░ inflation and get our ░░░░░░░░ back you know it ░░░░░░░░ it comes to earnings ░░░░░░░░ well do you think ░░░░░░░░ America is prepared to ░░░░░░░░ the road ahead and ░░░░░░░░ one might that mean ░░░░░░░░ the stock market Yeah ░░░░░░░░ would expect that that ░░░░░░░░ earnings are going to ░░░░░░░░ a rest Cause of ░░░░░░░░ cost And it This ░░░░░░░░ in the labor market ░░░░░░░░ s approved proving a ░░░░░░░░ for him to be ░░░░░░░░ think some of the ░░░░░░░░ prices of a lot ░░░░░░░░ it companies are already ░░░░░░░░ that activity so whether ░░░░░░░░ are rightly priced in ░░░░░░░░ market That s what ░░░░░░░░ meant You know makes ░░░░░░░░ market but I think ░░░░░░░░ future earnings should expect ░░░░░░░░ numbers to be somewhat ░░░░░░░░ The next couple of ░░░░░░░░ Patrick as the chief ░░░░░░░░ officer what are you ░░░░░░░░ your clients did and ░░░░░░░░ with their investments They ░░░░░░░░ they try to buy ░░░░░░░░ some bargains here other ░░░░░░░░ stocks if you are ░░░░░░░░ at an investors try ░░░░░░░░ get in that you ░░░░░░░░ suggest or are you ░░░░░░░░ going a different route ░░░░░░░░ thinking about more of ░░░░░░░░ income play for the ░░░░░░░░ that humanity Great question ░░░░░░░░ s really calm A ░░░░░░░░ the clients that are ░░░░░░░░ they tend to be ░░░░░░░░ income focus them Those ░░░░░░░░ are holding up better ░░░░░░░░ more value names given ░░░░░░░░ producing stocks for example ░░░░░░░░ in this market but ░░░░░░░░ being said once we ░░░░░░░░ see a lot The ░░░░░░░░ in place in in ░░░░░░░░ that those stop their ░░░░░░░░ rate hike I think ░░░░░░░░ re going to see ░░░░░░░░ rally in the names ░░░░░░░░ are going to show ░░░░░░░░ rally their earliest that ░░░░░░░░ higher growth names and ░░░░░░░░ it s it s ░░░░░░░░ s tempting to try ░░░░░░░░ calm the markets it ░░░░░░░░ a futile exercise to ░░░░░░░░ through I think I ░░░░░░░░ trying to practice and ░░░░░░░░ with clients and just ░░░░░░░░ expectations that the next ░░░░░░░░ of quarters ago it ░░░░░░░░ be a little bit ░░░░░░░░ A little bit rocky ░░░░░░░░ think that s what ░░░░░░░░ re all kind of ░░░░░░░░ here you know one ░░░░░░░░ that I do want ░░░░░░░░ ask about Patrick are ░░░░░░░░ asked federal government I ░░░░░░░░ actually released by the ░░░░░░░░ themselves They have a ░░░░░░░░ on the inflation rate ░░░░░░░░ inflation remaining elevated is ░░░░░░░░ something they are looking ░░░░░░░░ So that might be ░░░░░░░░ good solution for income ░░░░░░░░ investors and you know ░░░░░░░░ are some some significant ░░░░░░░░ on how much an ░░░░░░░░ by I but I ░░░░░░░░ it s it s ░░░░░░░░ of the tools to ░░░░░░░░ combat inflation And may ░░░░░░░░ relevant for income they ░░░░░░░░ erskine income were in ░░░░░░░░ fight Yeah at 10 ░░░░░░░░ I think is the ░░░░░░░░ cap Patrick we got ░░░░░░░░ leave it There are ░░░░░░░░ day in the stock ░░░░░░░░ good to see you