RUSH TRANSCRIPT Joining us ░░░░░░░░ kick off the show ░░░░░░░░ Malcolm Ethridge and stone ░░░░░░░░ chief market strategist Catherine ░░░░░░░░ avera Malcolm I feel ░░░░░░░░ every night we are ░░░░░░░░ this company and consumer ░░░░░░░░ For this company is ░░░░░░░░ people off And yet ░░░░░░░░ keep continue to make ░░░░░░░░ highs Yes Brian I ░░░░░░░░ the most important thing ░░░░░░░░ the Fed came out ░░░░░░░░ told us basically reassured ░░░░░░░░ that regardless of what ░░░░░░░░ cap does go with ░░░░░░░░ cut we are going ░░░░░░░░ see three by year ░░░░░░░░ And everything else does ░░░░░░░░ matter Whether the consumer ░░░░░░░░ feeling stressed especially for ░░░░░░░░ dollar retail like Nike ░░░░░░░░ lululemon it does not ░░░░░░░░ matter for the broader ░░░░░░░░ All we have been ░░░░░░░░ on to this point ░░░░░░░░ least is when the ░░░░░░░░ is going to cut ░░░░░░░░ whether they will Catherine ░░░░░░░░ you agree that is ░░░░░░░░ that matters I hate ░░░░░░░░ so tied to the ░░░░░░░░ Fed Maybe Malcolm is ░░░░░░░░ It is what atters ░░░░░░░░ the market The question ░░░░░░░░ if these headwinds turned ░░░░░░░░ reality we have been ░░░░░░░░ to consumers to pull ░░░░░░░░ for some time then ░░░░░░░░ story changes The market ░░░░░░░░ is the perfect landing ░░░░░░░░ from December civet party ░░░░░░░░ with pivot party part ░░░░░░░░ If you look at ░░░░░░░░ numbers I m talking ░░░░░░░░ Mike green not personal ░░░░░░░░ out books rent food ░░░░░░░░ that is all moving ░░░░░░░░ We are talking 41 ░░░░░░░░ total income People will ░░░░░░░░ pulling back We are ░░░░░░░░ seeing it We heard ░░░░░░░░ low income consumer is ░░░░░░░░ starting to pull back ░░░░░░░░ saw that in olive ░░░░░░░░ s numbers There underpriced ░░░░░░░░ in the market that ░░░░░░░░ me Brian it makes ░░░░░░░░ sense to at least ░░░░░░░░ out some orm of ░░░░░░░░ insurance policy and hedge ░░░░░░░░ bets with inexpensive options ░░░░░░░░ bills cash I think ░░░░░░░░ is going to cut ░░░░░░░░ will be probably 50 ░░░░░░░░ points or 75 That ░░░░░░░░ keep cash interesting gold ░░░░░░░░ Kathryn in layman s ░░░░░░░░ this is last call ░░░░░░░░ are not all market ░░░░░░░░ Do you do some ░░░░░░░░ of the money put ░░░░░░░░ on the S P ░░░░░░░░ for six months out ░░░░░░░░ can buy in at ░░░░░░░░ money At 4 that ░░░░░░░░ you 12 months out ░░░░░░░░ caps your upside At ░░░░░░░░ it protects your downside ░░░░░░░░ the event a combination ░░░░░░░░ headwinds really hitting the ░░░░░░░░ S consumer Which is ░░░░░░░░ underpriced risk t this ░░░░░░░░ Malcolm that is my ░░░░░░░░ Our job here at ░░░░░░░░ side of the desk ░░░░░░░░ your side with clients ░░░░░░░░ s kind of to ░░░░░░░░ even if things do ░░░░░░░░ Because what if we ░░░░░░░░ another red hot inflation ░░░░░░░░ and suddenly those three ░░░░░░░░ cut become two or ░░░░░░░░ And if we are ░░░░░░░░ beholden to the Federal ░░░░░░░░ for stock to go ░░░░░░░░ if we do not ░░░░░░░░ the rate cuts I ░░░░░░░░ you see where I ░░░░░░░░ going I do You ░░░░░░░░ the case that small ░░░░░░░░ finally had their day ░░░░░░░░ the sun after a ░░░░░░░░ days of hanging out ░░░░░░░░ no man s land ░░░░░░░░ is the part that ░░░░░░░░ me as far as ░░░░░░░░ for longer If inflation ░░░░░░░░ back the way we ░░░░░░░░ concerned it might it ░░░░░░░░ have an impact on ░░░░░░░░ small and written mid ░░░░░░░░ sectors What we are ░░░░░░░░ about may leave them ░░░░░░░░ Higher for longer impacts ░░░░░░░░ companies Your make a ░░░░░░░░ text might be immune ░░░░░░░░ smaller set there half ░░░░░░░░ the Russell 2000 is ░░░░░░░░ even profitable Every month ░░░░░░░░ Powell decided to keep ░░░░░░░░ rates higher that get ░░░░░░░░ much harder You think ░░░░░░░░ s why small caps ░░░░░░░░ been outperforming in the ░░░░░░░░ couple of months Because ░░░░░░░░ are super reliant on ░░░░░░░░ rate and the Fed ░░░░░░░░ is right I think ░░░░░░░░ market is basically placing ░░░░░░░░ that and trying to ░░░░░░░░ ahead of where the ░░░░░░░░ is going so to ░░░░░░░░ And make sure when ░░░░░░░░ cuts come they are ░░░░░░░░ place for that rhino ░░░░░░░░ inevitably happens in the ░░░░░░░░ 2000 for example I ░░░░░░░░ more concerned to kathryn ░░░░░░░░ point where the those ░░░░░░░░ take a long time ░░░░░░░░ come If you do ░░░░░░░░ have the insurance policy ░░░░░░░░ are just waiting for ░░░░░░░░ falling knife Probably one ░░░░░░░░ missile away from a ░░░░░░░░ on war with Iran ░░░░░░░░ no one to care ░░░░░░░░ Malcolm thank you very ░░░░░░░░