RUSH TRANSCRIPT Senior vice ░░░░░░░░ private wealth adviser Stanley ░░░░░░░░ catarina I guess yesterday ░░░░░░░░ the Fed it was ░░░░░░░░ of as expected they ░░░░░░░░ staying put but they ░░░░░░░░ saying they re still ░░░░░░░░ on inflation Higher limit ░░░░░░░░ a longer What did ░░░░░░░░ take away and does ░░░░░░░░ change your outlook for ░░░░░░░░ clients Fed acted as ░░░░░░░░ We expected that they ░░░░░░░░ going to take a ░░░░░░░░ from the rate hikes ░░░░░░░░ it is a very ░░░░░░░░ driven bad Sarah in ░░░░░░░░ has been conflicting Just ░░░░░░░░ s take a look ░░░░░░░░ this week where unemployment ░░░░░░░░ numbers that are gathering ░░░░░░░░ you know it s ░░░░░░░░ s very clear that ░░░░░░░░ are some economic pressure ░░░░░░░░ out there specifically with ░░░░░░░░ rates being so high ░░░░░░░░ that is affecting consumer ░░░░░░░░ one way or another ░░░░░░░░ is to we see ░░░░░░░░ consumer confidence coming down ░░░░░░░░ the most likely this ░░░░░░░░ it and they not ░░░░░░░░ rates and more but ░░░░░░░░ are leaving the door ░░░░░░░░ for November and if ░░░░░░░░ data and said they ░░░░░░░░ won t do it ░░░░░░░░ inflation is not quite ░░░░░░░░ are they needed to ░░░░░░░░ It s not a ░░░░░░░░ percent yet so you ░░░░░░░░ another hike Then next ░░░░░░░░ do you think we ░░░░░░░░ reason for rate cuts ░░░░░░░░ you know we we ░░░░░░░░ at the broad consensus ░░░░░░░░ know it looks like ░░░░░░░░ know There is a ░░░░░░░░ expectation that fed is ░░░░░░░░ to start cutting rates ░░░░░░░░ year but maybe not ░░░░░░░░ as aggressively in it ░░░░░░░░ all going to be ░░░░░░░░ by the extent of ░░░░░░░░ economic decline in in ░░░░░░░░ we re dealing with ░░░░░░░░ environment where earnings are ░░░░░░░░ pressure Do we started ░░░░░░░░ year can expecting the ░░░░░░░░ in the hard landing ░░░░░░░░ they switched it into ░░░░░░░░ software meeting in the ░░░░░░░░ looks like that s ░░░░░░░░ way we re going ░░░░░░░░ go but we can ░░░░░░░░ the risks that come ░░░░░░░░ with that scenario you ░░░░░░░░ now that it looks ░░░░░░░░ we re going to ░░░░░░░░ in the higher interest ░░░░░░░░ environment somewhat for a ░░░░░░░░ there there s so ░░░░░░░░ are expecting rate cuts ░░░░░░░░ it probably is going ░░░░░░░░ be fewer of them ░░░░░░░░ leader in the year ░░░░░░░░ year Sectors or other ░░░░░░░░ that kind of guide ░░░░░░░░ you re you re ░░░░░░░░ re recommending Brown in ░░░░░░░░ s a little run ░░░░░░░░ in the short trying ░░░░░░░░ tell investors to stay ░░░░░░░░ that state defensive and ░░░░░░░░ on sectors like industri ░░░░░░░░ all or health care ░░░░░░░░ example that has both ░░░░░░░░ qualities and income qualities ░░░░░░░░ the stocks be really ░░░░░░░░ dividends We also told ░░░░░░░░ to focus on cash ░░░░░░░░ know it s not ░░░░░░░░ it s not typical ░░░░░░░░ we can make some ░░░░░░░░ good rate of return ░░░░░░░░ our cash deposits but ░░░░░░░░ not forget about bars ░░░░░░░░ eventually rates are going ░░░░░░░░ start coming down in ░░░░░░░░ order to enjoy the ░░░░░░░░ interest rates for longer ░░░░░░░░ have to be in ░░░░░░░░ in a fixed income ░░░░░░░░ it will extend that ░░░░░░░░ rate for longer but ░░░░░░░░ also expecting that this ░░░░░░░░ eventually is going to ░░░░░░░░ to an end in ░░░░░░░░ new growth cycle is ░░░░░░░░ to start to few ░░░░░░░░ our inner it s ░░░░░░░░ s certainly does not ░░░░░░░░ to be opportunistic so ░░░░░░░░ now though I mean ░░░░░░░░ t bonds a screaming ░░░░░░░░ at these levels From ░░░░░░░░ price drop you re ░░░░░░░░ getting a four and ░░░░░░░░ half percent rate on ░░░░░░░░ 10 year mean that ░░░░░░░░ strong and then don ░░░░░░░░ you sell stocks here ░░░░░░░░ became financial advisory in ░░░░░░░░ 90 nine and that ░░░░░░░░ the only other time ░░░░░░░░ my career where I ░░░░░░░░ rates and this levels ░░░░░░░░ I think we should ░░░░░░░░ how unique it is ░░░░░░░░ have these access to ░░░░░░░░ interest rates and we ░░░░░░░░ take full advantage of ░░░░░░░░ Knowing that The environment ░░░░░░░░ the over the last ░░░░░░░░ with rates were not ░░░░░░░░ to where it is ░░░░░░░░ this does not mean ░░░░░░░░ we need to sell ░░░░░░░░ stocks We have to ░░░░░░░░ true to acid allocation ░░░░░░░░ it is you know ░░░░░░░░ complete asset allocation where ░░░░░░░░ have an appropriate allocation ░░░░░░░░ stocks and bonds and ░░░░░░░░ that is going to ░░░░░░░░ get us to Not ░░░░░░░░ away from how special ░░░░░░░░ admirer rent is so ░░░░░░░░ A lot of folks ░░░░░░░░ me at this stage ░░░░░░░░ the cycle focus on ░░░░░░░░ I ve never really ░░░░░░░░ what quality is is ░░░░░░░░ call The balance sheet ░░░░░░░░ a quality management Is ░░░░░░░░ earnings quality How How ░░░░░░░░ you guys think about ░░░░░░░░ Valuation certainly matter competitive ░░░░░░░░ matter You know the ░░░░░░░░ to enjoy dividends from ░░░░░░░░ stock investments that we ░░░░░░░░ look at equality or ░░░░░░░░ s call them defensive ░░░░░░░░ These will be industrialist ░░░░░░░░ financials healthcare consumer staples ░░░░░░░░ know when we think ░░░░░░░░ the cold it right ░░░░░░░░ know we re in ░░░░░░░░ consumers will pull back ░░░░░░░░ spending money on some ░░░░░░░░ items but will still ░░░░░░░░ necessary items This is ░░░░░░░░ hope we think about ░░░░░░░░ we look at the ░░░░░░░░ sectors Sectors that are ░░░░░░░░ to be growing in ░░░░░░░░ going to be profitable ░░░░░░░░ any market environment to ░░░░░░░░ that s what we ░░░░░░░░ it telling our clients ░░░░░░░░ stay with for the ░░░░░░░░ being until we get ░░░░░░░░ the end of the ░░░░░░░░ and until we get ░░░░░░░░ in er into more ░░░░░░░░ a gross goes face ░░░░░░░░ appreciated as always kind ░░░░░░░░ disseminating senior vice president ░░░░░░░░ wealth adviser for Morgan ░░░░░░░░