RUSH TRANSCRIPT And the ░░░░░░░░ market reacting positively today ░░░░░░░░ I do want to ░░░░░░░░ in Glen Smith chief ░░░░░░░░ officer at ubs wealth ░░░░░░░░ I m glad it ░░░░░░░░ great to have you ░░░░░░░░ the show And what ░░░░░░░░ you make of today ░░░░░░░░ market action This morning ░░░░░░░░ pce index announced that ░░░░░░░░ As you mention 0 ░░░░░░░░ last month the most ░░░░░░░░ for months drop in ░░░░░░░░ inflation to about 2 ░░░░░░░░ from the overall trend ░░░░░░░░ is definitely lower As ░░░░░░░░ all know inflation Is ░░░░░░░░ going a straight line ░░░░░░░░ you look at the ░░░░░░░░ We definitely think it ░░░░░░░░ it s going to ░░░░░░░░ ago a lower but ░░░░░░░░ may take longer than ░░░░░░░░ when you look at ░░░░░░░░ 10 year treasury talked ░░░░░░░░ 4 3 which is ░░░░░░░░ the investors are telling ░░░░░░░░ the market s them ░░░░░░░░ well And I think ░░░░░░░░ though rates might stay ░░░░░░░░ than people anticipate I ░░░░░░░░ it s important Remember ░░░░░░░░ don t have to ░░░░░░░░ a lower interest rate ░░░░░░░░ for the market do ░░░░░░░░ from feb 2024 So ░░░░░░░░ Let s talk about ░░░░░░░░ this inflation report might ░░░░░░░░ for the future of ░░░░░░░░ cuts Of course the ░░░░░░░░ closely paying attention to ░░░░░░░░ past for for borrowing ░░░░░░░░ and the Fed next ░░░░░░░░ to meet in March ░░░░░░░░ whats your take We ░░░░░░░░ in March there will ░░░░░░░░ rate cut We think ░░░░░░░░ be a great rate ░░░░░░░░ in 2024 Beginning in ░░░░░░░░ Inflation is not a ░░░░░░░░ rate of 2 and ░░░░░░░░ that we it very ░░░░░░░░ market The unemployment numbers ░░░░░░░░ historically low The the ░░░░░░░░ can be patient here ░░░░░░░░ don t have to ░░░░░░░░ rush it to later ░░░░░░░░ raise interest rates to ░░░░░░░░ inflation is I think ░░░░░░░░ re going to be ░░░░░░░░ patient which I think ░░░░░░░░ a pretty thing to ░░░░░░░░ We expect in to ░░░░░░░░ the first of 3 ░░░░░░░░ cuts for 2024 to ░░░░░░░░ for inflation As so ░░░░░░░░ re right near record ░░░░░░░░ I mean does this ░░░░░░░░ of get us in ░░░░░░░░ all clear or are ░░░░░░░░ things that investors should ░░░░░░░░ watching Absolutely there several ░░░░░░░░ that we love in ░░░░░░░░ sectors will be very ░░░░░░░░ with the magnificent 7 ░░░░░░░░ everybody is keeping their ░░░░░░░░ on them and love ░░░░░░░░ If you look at ░░░░░░░░ forward pe it s ░░░░░░░░ 30 35 whereas if ░░░░░░░░ take them out the ░░░░░░░░ of the market is ░░░░░░░░ very reasonable I would ░░░░░░░░ very leery and careful ░░░░░░░░ put new money to ░░░░░░░░ at some of these ░░░░░░░░ as tech stocks or ░░░░░░░░ care I think there ░░░░░░░░ much better opportunities such ░░░░░░░░ in financials and energy ░░░░░░░░ They re much better ░░░░░░░░ going forward So in ░░░░░░░░ of how best or ░░░░░░░░ be thinking about their ░░░░░░░░ out asset allocation Glenn ░░░░░░░░ would you tell I ░░░░░░░░ tell him to be ░░░░░░░░ cautious putting new money ░░░░░░░░ work at these at ░░░░░░░░ valuations Look for opportunities ░░░░░░░░ consider JP Morgan which ░░░░░░░░ been doing very well ░░░░░░░░ multinational company If rates ░░░░░░░░ down it s going ░░░░░░░░ do well by mortgage ░░░░░░░░ picking up the freight ░░░░░░░░ out stay elevated It ░░░░░░░░ going to benefit from ░░░░░░░░ net interest margins You ░░░░░░░░ look at how a ░░░░░░░░ obviously largest oil field ░░░░░░░░ provider in the world ░░░░░░░░ per share are expected ░░░░░░░░ grow 11 this year ░░░░░░░░ a p E of ░░░░░░░░ think you have a ░░░░░░░░ bit more margin for ░░░░░░░░ rather than investing in ░░░░░░░░ that s priced to ░░░░░░░░ Like nvidia who if ░░░░░░░░ have any hiccup I ░░░░░░░░ see I could see ░░░░░░░░ coming down significantly Interesting ░░░░░░░░ has so in speaking ░░░░░░░░ that blockbuster earnings really ░░░░░░░░ the tax base I ░░░░░░░░ the NASDAQ and the ░░░░░░░░ and p included What ░░░░░░░░ your overall take on ░░░░░░░░ were kind of coming ░░░░░░░░ the end of earnings ░░░░░░░░ here And you think ░░░░░░░░ corporate America is faring ░░░░░░░░ Corporate America looks like ░░░░░░░░ s been very resilient ░░░░░░░░ s been unique about ░░░░░░░░ He s even though ░░░░░░░░ in a couple years ░░░░░░░░ we had inflation of ░░░░░░░░ companies have adapted They ░░░░░░░░ been resilient There s ░░░░░░░░ good cost cutting automation ░░░░░░░░ this is loud economy ░░░░░░░░ continue to be through ░░░░░░░░ time I think earnings ░░░░░░░░ we saw an example ░░░░░░░░ salesforce are going to ░░░░░░░░ to be robust throughout ░░░░░░░░ That being said I ░░░░░░░░ t be shocked if ░░░░░░░░ get some type of ░░░░░░░░ just because historically get ░░░░░░░░ to buy every 14 ░░░░░░░░ And I think I ░░░░░░░░ are right for a ░░░░░░░░ bit bump in the ░░░░░░░░ which is why it ░░░░░░░░ so important to be ░░░░░░░░ and make sure you ░░░░░░░░ to invest in any ░░░░░░░░ sector Anyone s doctorate ░░░░░░░░ in this market Do ░░░░░░░░ think the mag 7 ░░░░░░░░ can continue the leadership ░░░░░░░░ we ve seen this ░░░░░░░░ or do you expect ░░░░░░░░ has breath might broaden ░░░░░░░░ I would expect the ░░░░░░░░ to continue to broaden ░░░░░░░░ think the magnificent 7 ░░░░░░░░ had an amazing run ░░░░░░░░ you look at and ░░░░░░░░ which is up 20 ░░░░░░░░ over the next level ░░░░░░░░ the last 5 years ░░░░░░░░ think it s it ░░░░░░░░ impossible in my opinion ░░░░░░░░ think that over the ░░░░░░░░ 5 years it s ░░░░░░░░ to 20 x again ░░░░░░░░ think there s if ░░░░░░░░ own and get big ░░░░░░░░ that he may want ░░░░░░░░ consider keeping a portion ░░░░░░░░ to put new money ░░░░░░░░ d be very careful ░░░░░░░░ I think there s ░░░░░░░░ many better opportunities in ░░░░░░░░ market with a wrist ░░░░░░░░ valuations to give yourself ░░░░░░░░ buffer for the inevitable ░░░░░░░░ in the market So ░░░░░░░░ you re not a ░░░░░░░░ hurt in a retirement ░░░░░░░░ Your investments I know ░░░░░░░░ mentioned I JP Morgan ░░░░░░░░ stopped That looks attractive ░░░░░░░░ you Glenn what are ░░░░░░░░ other sectors or even ░░░░░░░░ U S stocks specifically ░░░░░░░░ that you think could ░░░░░░░░ opportunistic for investors We ░░░░░░░░ diamondback energy as what ░░░░░░░░ it unique it it ░░░░░░░░ a permian basin here ░░░░░░░░ Texas it has more ░░░░░░░░ Any is no more ░░░░░░░░ drills And in any ░░░░░░░░ company in the permian ░░░░░░░░ In addition to that ░░░░░░░░ s cost break even ░░░░░░░░ barrel is about 50 ░░░░░░░░ barrel which is quite ░░░░░░░░ in that industry One ░░░░░░░░ of be careful with ░░░░░░░░ in this market would ░░░░░░░░ health care health health ░░░░░░░░ in general They have ░░░░░░░░ a lot financing and ░░░░░░░░ rates they elevated and ░░░░░░░░ continued to refinance I ░░░░░░░░ that could be that ░░░░░░░░ cause a little bit ░░░░░░░░ a problem being that ░░░░░░░░ little bit of a ░░░░░░░░ issue Yeah Regardless of ░░░░░░░░ wins the election I ░░░░░░░░ you could see more ░░░░░░░░ which could cause a ░░░░░░░░ of margin Compression for ░░░░░░░░ care said to be ░░░░░░░░ careful with with health ░░░░░░░░ of this time putting ░░░░░░░░ money to work Does ░░░░░░░░ seem like the consumer ░░░░░░░░ faring Well see I ░░░░░░░░ inflation still running hotter ░░░░░░░░ 4 tenths of a ░░░░░░░░ in January from the ░░░░░░░░ before 2 8 from ░░░░░░░░ year ago But it ░░░░░░░░ seem Glenn like the ░░░░░░░░ is is still solid ░░░░░░░░ s your take The ░░░░░░░░ has been very we ░░░░░░░░ in this economy it ░░░░░░░░ it s it s ░░░░░░░░ to do If you ░░░░░░░░ at a way it ░░░░░░░░ like consumers are always ░░░░░░░░ back very well in ░░░░░░░░ market And we we ░░░░░░░░ people can hang in ░░░░░░░░ until June which interest ░░░░░░░░ will start coming down ░░░░░░░░ think will be it ░░░░░░░░ be continuing continuing on ░░░░░░░░ strong economy at this ░░░░░░░░ I m Glenn thank ░░░░░░░░ so much for joining ░░░░░░░░ Appreciated good games across ░░░░░░░░ board the NASDAQ leading ░░░░░░░░ lay up 8 tenths ░░░░░░░░ a percent The s ░░░░░░░░ p higher by half ░░░░░░░░ percent The dow up ░░░░░░░░ tents a percent All ░░░░░░░░ Well stay with us ░░░░░░░░ we ve got a ░░░░░░░░ more chatter coming up ░░░░░░░░ was Glenn Smith chief ░░░░░░░░ officer at geelong management ░░░░░░░░ take a look at ░░░░░░░░ top business headlines on ░░░░░░░░ other