RUSH TRANSCRIPT Be the ░░░░░░░░ Let s get the ░░░░░░░░ the James academic he ░░░░░░░░ chief investment officer at ░░░░░░░░ street research He joins ░░░░░░░░ the assume from New ░░░░░░░░ James do by the ░░░░░░░░ a record simple question ░░░░░░░░ You do get you ░░░░░░░░ I think investors have ░░░░░░░░ a huge mistake For ░░░░░░░░ to break before they ░░░░░░░░ and install a mistake ░░░░░░░░ think it s going ░░░░░░░░ be a mistake Going ░░░░░░░░ Let s say to ░░░░░░░░ next level their What ░░░░░░░░ you buy it and ░░░░░░░░ just load into my ░░░░░░░░ Tech stocks that are ░░░░░░░░ so well for me ░░░░░░░░ past couple years ago ░░░░░░░░ try to get creative ░░░░░░░░ of us was focusing ░░░░░░░░ the wrong thing which ░░░░░░░░ the Fed and they ░░░░░░░░ be focusing on What ░░░░░░░░ driving this market it ░░░░░░░░ with this market staring ░░░░░░░░ discounting this new a ░░░░░░░░ tech lead business cycle ░░░░░░░░ bull market in so ░░░░░░░░ think about what to ░░░░░░░░ even went levels like ░░░░░░░░ We want to think ░░░░░░░░ Lead this cycle In ░░░░░░░░ growing earnings Where do ░░░░░░░░ go for that right ░░░░░░░░ s 10 eleven sectors ░░░░░░░░ the economy and great ░░░░░░░░ where they are which ░░░░░░░░ think they will You ░░░░░░░░ to go to tech ░░░░░░░░ sure you one of ░░░░░░░░ telecom everywhere this a ░░░░░░░░ productivity growth can effect ░░░░░░░░ think healthcare is definitely ░░░░░░░░ of those I think ░░░░░░░░ center sort of interesting ░░░░░░░░ very inexpensive industrial companies ░░░░░░░░ straight jamie jamie diamond ░░░░░░░░ a few weeks ago ░░░░░░░░ packing j p Morgan ░░░░░░░░ I think you kind ░░░░░░░░ want to think about ░░░░░░░░ is an 19 nineties ░░░░░░░░ you will where with ░░░░░░░░ s the last time ░░░░░░░░ had this huge burma ░░░░░░░░ growth that was a ░░░░░░░░ technology I to the ░░░░░░░░ now we re in ░░░░░░░░ a I phase Always ░░░░░░░░ well on end but ░░░░░░░░ you get there it ░░░░░░░░ utilities I find that ░░░░░░░░ fascinating because usually you ░░░░░░░░ of utilities as just ░░░░░░░░ straight up dividend yield ░░░░░░░░ rate it a our ░░░░░░░░ a growth sector right ░░░░░░░░ Can you play it ░░░░░░░░ value it like a ░░░░░░░░ sector Set to pentagon ░░░░░░░░ by predictable the you ░░░░░░░░ here you have a ░░░░░░░░ story right If it ░░░░░░░░ in a I tech ░░░░░░░░ a business cycle but ░░░░░░░░ it with ease and ░░░░░░░░ got these ships just ░░░░░░░░ away meeting so much ░░░░░░░░ we re looking at ░░░░░░░░ utility industry as potentially ░░░░░░░░ very big growth area ░░░░░░░░ the grid is going ░░░░░░░░ have to get way ░░░░░░░░ to support what we ░░░░░░░░ is a seventy nine ░░░░░░░░ business cycle it s ░░░░░░░░ by a I profit ░░░░░░░░ productivity growth and I ░░░░░░░░ Tell you not just ░░░░░░░░ but who s going ░░░░░░░░ build their grid Industrial ░░░░░░░░ that I think that ░░░░░░░░ one of the reason ░░░░░░░░ re seeing you re ░░░░░░░░ caterpillar tractors and that ░░░░░░░░ of thing doing quite ░░░░░░░░ over the last few ░░░░░░░░ discounting now with the ░░░░░░░░ going to do It ░░░░░░░░ says county hey This ░░░░░░░░ a new era a ░░░░░░░░ different type of business ░░░░░░░░ You have on your ░░░░░░░░ is apple in its ░░░░░░░░ a lot of people ░░░░░░░░ lists but it s ░░░░░░░░ ve seen facing some ░░░░░░░░ headwinds notably China That ░░░░░░░░ hasn t yet quite ░░░░░░░░ into it s multiple ░░░░░░░░ a I do You ░░░░░░░░ the I you know ░░░░░░░░ dust can find apple ░░░░░░░░ some point Allowed people ░░░░░░░░ lists is a bearish ░░░░░░░░ We are absolutely one ░░░░░░░░ 80 degrees opposite bush ░░░░░░░░ and we think they ░░░░░░░░ to the game There ░░░░░░░░ no question and that ░░░░░░░░ frustrating as a shareholder ░░░░░░░░ you know as we ░░░░░░░░ to to the conference ░░░░░░░░ and and read The ░░░░░░░░ leaves a where apple ░░░░░░░░ going here and you ░░░░░░░░ see with a recent ░░░░░░░░ of partnership which had ░░░░░░░░ t We think in ░░░░░░░░ eleventh is going to ░░░░░░░░ a big call from ░░░░░░░░ apple cupertino and cook ░░░░░░░░ I Think they re ░░░░░░░░ to talk about hey ░░░░░░░░ re bringing a I ░░░░░░░░ the I phone we ░░░░░░░░ envisioned it as a ░░░░░░░░ siri You know like ░░░░░░░░ personal assistant siri which ░░░░░░░░ way better than what ░░░░░░░░ have now might start ░░░░░░░░ subscriptions think about the ░░░░░░░░ install base around the ░░░░░░░░ they have and then ░░░░░░░░ probably going to force ░░░░░░░░ all to get a ░░░░░░░░ iphone if you call ░░░░░░░░ well to support it ░░░░░░░░ we are fans 20 ░░░░░░░░ times earnings neglected one ░░░░░░░░ those that you wanna ░░░░░░░░ wanna add here My ░░░░░░░░ just one day like ░░░░░░░░ re done here take ░░░░░░░░ we had to get ░░░░░░░░ new one on you ░░░░░░░░ like answer now Why ░░░░░░░░ that be Why do ░░░░░░░░ like that for the ░░░░░░░░ tree like there s ░░░░░░░░ of those kind of ░░░░░░░░ and we can start ░░░░░░░░ with Why is it ░░░░░░░░ one for you Love ░░░░░░░░ overseas exposure right from ░░░░░░░░ netherlands but this is ░░░░░░░░ company knows no debt ░░░░░░░░ this is an integral ░░░░░░░░ of what makes in ░░░░░░░░ ship work right So ░░░░░░░░ s just a handful ░░░░░░░░ companies that actually do ░░░░░░░░ design that nvidia users ░░░░░░░░ so the videos by ░░░░░░░░ the technology to design ░░░░░░░░ fabricate these chips So ░░░░░░░░ re really at the ░░░░░░░░ of the cycle of ░░░░░░░░ the chips absolutely important ░░░░░░░░ to own not just ░░░░░░░░ chip chipmaker they re ░░░░░░░░ ones helping the chipmakers ░░░░░░░░ them make the chips ░░░░░░░░ very important to be ░░░░░░░░ that front End of ░░░░░░░░ the most important company ░░░░░░░░ that end about and ░░░░░░░░ fixed income space James ░░░░░░░░ guys allocate their and ░░░░░░░░ so how do you ░░░░░░░░ so We do a ░░░░░░░░ of our assets under ░░░░░░░░ we manage about two ░░░░░░░░ are in fixed income ░░░░░░░░ our view is the ░░░░░░░░ may not do anything ░░░░░░░░ so here s where ░░░░░░░░ want to say well ░░░░░░░░ rates have let s ░░░░░░░░ pig but they re ░░░░░░░░ going to go down ░░░░░░░░ to go out here ░░░░░░░░ duration I think it ░░░░░░░░ safe to do that ░░░░░░░░ feds raising rates anytime ░░░░░░░░ I think that that ░░░░░░░░ some point they ll ░░░░░░░░ than I don t ░░░░░░░░ it s this year ░░░░░░░░ so you want to ░░░░░░░░ individual bonds high credit ░░░░░░░░ based on your tax ░░░░░░░░ either own beauties or ░░░░░░░░ corporates a love corporates ░░░░░░░░ the non taxable account ░░░░░░░░ don t feel comfortable ░░░░░░░░ out 20 twenty five ░░░░░░░░ years lock that yield ░░░░░░░░ make sure no one ░░░░░░░░ take away from you ░░░░░░░░ yes eventually race will ░░░░░░░░ down and those will ░░░░░░░░ be available So we ░░░░░░░░ a ladder a little ░░░░░░░░ on the short end ░░░░░░░░ in the middle and ░░░░░░░░ on the on the ░░░░░░░░ and very different than ░░░░░░░░ we were doing three ░░░░░░░░ four years ago Priced ░░░░░░░░ in my view there ░░░░░░░░ so many different metrics ░░░░░░░░ when you compare it ░░░░░░░░ say the aid the ░░░░░░░░ re getting on a ░░░░░░░░ year Some might say ░░░░░░░░ you re not getting ░░░░░░░░ at all that that ░░░░░░░░ is not president where ░░░░░░░░ think Know first of ░░░░░░░░ you re when you ░░░░░░░░ at the beginning of ░░░░░░░░ business cycle peas can ░░░░░░░░ broke as were looking ░░░░░░░░ I we look at ░░░░░░░░ and that he is ░░░░░░░░ all the time so ░░░░░░░░ s sort of makes ░░░░░░░░ p E and seem ░░░░░░░░ little higher than the ░░░░░░░░ And more importantly and ░░░░░░░░ think this is a ░░░░░░░░ problem investors are Us ░░░░░░░░ pay five hundred or ░░░░░░░░ a normal index you ░░░░░░░░ seven stocks trading at ░░░░░░░░ five times earnings and ░░░░░░░░ got the rest The ░░░░░░░░ trading at 15 know ░░░░░░░░ time that you have ░░░░░░░░ and eleven time zones ░░░░░░░░ is what s going ░░░░░░░░ today Eleven times is ░░░░░░░░ store for financial stocks ░░░░░░░░ the rest reservoir market ░░░░░░░░ At fifty that is ░░░░░░░░ a value proposition as ░░░░░░░░ move towards a growing ░░░░░░░░ economy and one that ░░░░░░░░ view as GDP plus ░░░░░░░░ percent not GDP plus ░░░░░░░░ which is what we ░░░░░░░░ for the last 20 ░░░░░░░░ so higher growth 15 ░░░░░░░░ earnings absolutely and particularly ░░░░░░░░ these sectors I mentioned ░░░░░░░░ earlier They have not ░░░░░░░░ yet been impacted by ░░░░░░░░ power of a I ░░░░░░░░ growth at James Thank ░░░░░░░░ so much for joining ░░░░░░░░ James dimmer He is ░░░░░░░░ chief investment officer that ░░░░░░░░ street research joining us ░░░░░░░░ New York City.