RUSH TRANSCRIPT Allen Joining ░░░░░░░░ now is Nancy Dauod ░░░░░░░░ wealth adviser at Ameriprice ░░░░░░░░ and CEO at Opus ░░░░░░░░ First Nancy notwithstanding the ░░░░░░░░ bounce that we saw ░░░░░░░░ in U S markets ░░░░░░░░ like utilities Are they ░░░░░░░░ more defensive broadly speaking ░░░░░░░░ Well yes of course ░░░░░░░░ was sort of a ░░░░░░░░ picture for technology stocks ░░░░░░░░ the entire month of ░░░░░░░░ since the high in ░░░░░░░░ 27th has clearly shown ░░░░░░░░ pull back And maybe ░░░░░░░░ the market take a ░░░░░░░░ ease over bought conditions ░░░░░░░░ August historically hasn t ░░░░░░░░ a good month for ░░░░░░░░ market anyway However this ░░░░░░░░ an all clear sign ░░░░░░░░ so when we look ░░░░░░░░ opportunities we look for ░░░░░░░░ sectors have taken the ░░░░░░░░ beating or have been ░░░░░░░░ more recently or in ░░░░░░░░ last 12 months clearly ░░░░░░░░ utilities sector be one ░░░░░░░░ be more defensive looking ░░░░░░░░ especially if further declines ░░░░░░░░ expected But not some ░░░░░░░░ information technology today made ░░░░░░░░ very big come back ░░░░░░░░ just Friday was technically ░░░░░░░░ Allen And now we ░░░░░░░░ seeing rates moving higher ░░░░░░░░ course as the year ░░░░░░░░ has been good for ░░░░░░░░ What are your expectations ░░░░░░░░ the future of rates ░░░░░░░░ we countdown to Jackson ░░░░░░░░ and the Fed meeting ░░░░░░░░ that because we ve ░░░░░░░░ some pretty tough rhetoric ░░░░░░░░ out of the Fed ░░░░░░░░ the past couple of ░░░░░░░░ DAOUD Well it is ░░░░░░░░ difficult to predict but ░░░░░░░░ Powell said clearly waged ░░░░░░░░ war on inflation and ░░░░░░░░ determined to follow through ░░░░░░░░ it I think the ░░░░░░░░ the stronger than expected ░░░░░░░░ data that s recently ░░░░░░░░ coming out certainly implies ░░░░░░░░ their FED rate hikes ░░░░░░░░ some of the deterioration ░░░░░░░░ we re seeing in ░░░░░░░░ The mortgage rates are ░░░░░░░░ of 7 percent is ░░░░░░░░ highest in 20 years ░░░░░░░░ there are all indications ░░░░░░░░ we need to keep ░░░░░░░░ forward in that battle ░░░░░░░░ inflation AHN And yet ░░░░░░░░ it comes with a ░░░░░░░░ market sentiment we have ░░░░░░░░ few signs of outright ░░░░░░░░ in fact with it ░░░░░░░░ to large speculators hedge ░░░░░░░░ are narrowing their short ░░░░░░░░ in S P 500 ░░░░░░░░ Is this when are ░░░░░░░░ going to see the ░░░░░░░░ of these calls DAOUD ░░░░░░░░ s hard to tell ░░░░░░░░ course I think that ░░░░░░░░ have to be very ░░░░░░░░ moving forward for the ░░░░░░░░ of the year Recession ░░░░░░░░ still not out of ░░░░░░░░ question although less likely ░░░░░░░░ maybe that soft landing ░░░░░░░░ we ve all been ░░░░░░░░ for might actually be ░░░░░░░░ But until we overcome ░░░░░░░░ battle for inflation I ░░░░░░░░ it is very difficult ░░░░░░░░ predict what s coming ░░░░░░░░ I would like to ░░░░░░░░ my investors or my ░░░░░░░░ to be more defensive ░░░░░░░░ more cautious and make ░░░░░░░░ to test their appetite ░░░░░░░░ risks because I think ░░░░░░░░ might actually be in ░░░░░░░░ a couple of months ░░░░░░░░ big swings AHN When ░░░░░░░░ comes to specific sectors ░░░░░░░░ talked about tech what ░░░░░░░░ financials given of course ░░░░░░░░ yields DAOUD Well that ░░░░░░░░ actually good news for ░░░░░░░░ banking sector so I ░░░░░░░░ expect financials to do ░░░░░░░░ I would expect healthcare ░░░░░░░░ do well because that ░░░░░░░░ the sector that weathers ░░░░░░░░ economic condition There is ░░░░░░░░ narrow opportunities still in ░░░░░░░░ information technology sector as ░░░░░░░░ so there s always ░░░░░░░░ opportunity when the market ░░░░░░░░ a breather like this ░░░░░░░░ gives everybody an opportunity ░░░░░░░░ consolidate maybe do some ░░░░░░░░ and look where the ░░░░░░░░ upside is going to ░░░░░░░░ AHN With all the ░░░░░░░░ sector today taking a ░░░░░░░░ of course we had ░░░░░░░░ crisis falling Is there ░░░░░░░░ in the commodity space ░░░░░░░░ you like DAOUD No ░░░░░░░░ s a little bit ░░░░░░░░ out but in looking ░░░░░░░░ for the rest of ░░░░░░░░ year we expect things ░░░░░░░░ be very rocky and ░░░░░░░░ are taking a very ░░░░░░░░ posture AHN How much ░░░░░░░░ that has to do ░░░░░░░░ the U S dollar ░░░░░░░░ DAOUD Yes and looking ░░░░░░░░ the U S I ░░░░░░░░ that western Europe and ░░░░░░░░ the U S Has ░░░░░░░░ slow to recover and ░░░░░░░░ course the U S ░░░░░░░░ has been fairly strong ░░░░░░░░ s very difficult to ░░░░░░░░ a very good profit ░░░░░░░░ so we tend to ░░░░░░░░ with more U S ░░░░░░░░ U S equities as ░░░░░░░░ to outside the U ░░░░░░░░ However having said that ░░░░░░░░ think it is not ░░░░░░░░ ahead in the future ░░░░░░░░ emerging markets might become ░░░░░░░░ very good opportunity But ░░░░░░░░ all of the deteriorations ░░░░░░░░ China may change that ░░░░░░░░ Allen To your point ░░░░░░░░ shares in the Asia ░░░░░░░░ are a losing streak ░░░░░░░░ about 14 months now ░░░░░░░░ a couple of days ░░░░░░░░ gains in August You ░░░░░░░░ August a little but ░░░░░░░░ Is this just symptomatic ░░░░░░░░ what you see in ░░░░░░░░ normal August or is ░░░░░░░░ part of broader down ░░░░░░░░ for Asia Pacific stocks ░░░░░░░░ Well no August is ░░░░░░░░ general not been a ░░░░░░░░ month in the stock ░░░░░░░░ It is usually very ░░░░░░░░ We are going into ░░░░░░░░ season August September is ░░░░░░░░ very volatile and sluggish ░░░░░░░░ I think that the ░░░░░░░░ in China and the ░░░░░░░░ of the dollar will ░░░░░░░░ the difference as far ░░░░░░░░ looking outside U S ░░░░░░░░ investors Allen All right ░░░░░░░░ Daoud private wealth advisor ░░░░░░░░ Ameriprice Financial and CEO ░░░░░░░░ Opus Advise thanks so ░░░░░░░░ for joining us.”