RUSH TRANSCRIPT Stay with ░░░░░░░░ Bringing in more voices ░░░░░░░░ this Mary Ann Bartels ░░░░░░░░ investment strategist at sanctuary ░░░░░░░░ and our own Steve ░░░░░░░░ as well Steve to ░░░░░░░░ first on this We ░░░░░░░░ with Jeremy Siegel an ░░░░░░░░ ago He said expect ░░░░░░░░ core number to be ░░░░░░░░ than anticipated Yeah That ░░░░░░░░ because yesterday s core ░░░░░░░░ in the GDP was ░░░░░░░░ little hotter We did ░░░░░░░░ a bit of a ░░░░░░░░ here People thought maybe ░░░░░░░░ revision of prior months ░░░░░░░░ like mostly in June ░░░░░░░░ just a little bit ░░░░░░░░ here the goods durable ░░░░░░░░ still down 0 2 ░░░░░░░░ the month That s ░░░░░░░░ Services up 0 3 ░░░░░░░░ 0 2 That s ░░░░░░░░ line with where it ░░░░░░░░ been So I think ░░░░░░░░ is okay for the ░░░░░░░░ Reserve I think they ░░░░░░░░ have wanted it a ░░░░░░░░ lower To put a ░░░░░░░░ more detail what rick ░░░░░░░░ you It wasn t ░░░░░░░░ 2 It was 0 ░░░░░░░░ Looking at the hundredth ░░░░░░░░ a decimal point to ░░░░░░░░ what s going on ░░░░░░░░ one thing good for ░░░░░░░░ Federal Reserve here I ░░░░░░░░ is that wages andsalaries ░░░░░░░░ up 0 3 Half ░░░░░░░░ the prior month A ░░░░░░░░ less pressure from that ░░░░░░░░ of view I ll ░░░░░░░░ it back to you ░░░░░░░░ understanding the savings rate ░░░░░░░░ waiting for it to ░░░░░░░░ I believe it ticked ░░░░░░░░ to 3 4 from ░░░░░░░░ 5 It remained relatively ░░░░░░░░ becky All right Steve ░░░░░░░░ Let s continue this ░░░░░░░░ Mary Ann what are ░░░░░░░░ thinking about these numbers ░░░░░░░░ more broadly what are ░░░░░░░░ thinking about the equity ░░░░░░░░ This morning futures are ░░░░░░░░ really strong Well I ░░░░░░░░ t think the numbers ░░░░░░░░ the Fed cutting rates ░░░░░░░░ September So that s ░░░░░░░░ positive You re seeing ░░░░░░░░ reaction within the fixed ░░░░░░░░ markets If you look ░░░░░░░░ the markets becky technically ░░░░░░░░ you re looking at ░░░░░░░░ magnificent seven you re ░░░░░░░░ at the NASDAQ 100 ░░░░░░░░ the S P we ░░░░░░░░ very oversold And we ░░░░░░░░ actually the same oversold ░░░░░░░░ as we were back ░░░░░░░░ April when we had ░░░░░░░░ last big correction So ░░░░░░░░ think the surprise can ░░░░░░░░ we can actually rally ░░░░░░░░ here But I do ░░░░░░░░ that the rest of ░░░░░░░░ year is not going ░░░░░░░░ be as easy as ░░░░░░░░ first half of the ░░░░░░░░ We came in to ░░░░░░░░ year saying the markets ░░░░░░░░ be a bucking bull ░░░░░░░░ aren t bucking I ░░░░░░░░ the seasonals are at ░░░░░░░░ in September and October ░░░░░░░░ we get another sell ░░░░░░░░ but then year end ░░░░░░░░ I think the year ░░░░░░░░ up very strong We ░░░░░░░░ be up 20 but ░░░░░░░░ don t think it ░░░░░░░░ an easy ride getting ░░░░░░░░ When you talk about ░░░░░░░░ pullback are you talking ░░░░░░░░ the variety garden variety ░░░░░░░░ 3 4 5 Look ░░░░░░░░ the qs in the ░░░░░░░░ Already a correction S ░░░░░░░░ a little over 5 ░░░░░░░░ think the S P ░░░░░░░░ be a 10 or ░░░░░░░░ correction opinion I think ░░░░░░░░ s just a correction ░░░░░░░░ ve been getting these ░░░░░░░░ 3 to 5 corrections ░░░░░░░░ happen a few time ░░░░░░░░ year but normally get ░░░░░░░░ really good flush out ░░░░░░░░ at least 10 I ░░░░░░░░ think that we re ░░░░░░░░ risk of doing that ░░░░░░░░ the fall And you ░░░░░░░░ part of that is ░░░░░░░░ at this point it ░░░░░░░░ kind of a buy ░░░░░░░░ rumor sell the news ░░░░░░░░ the Fed actually cuts ░░░░░░░░ The time the market ░░░░░░░░ wait a second Why ░░░░░░░░ they cutting them Yes ░░░░░░░░ actually agree with that ░░░░░░░░ do think once he ░░░░░░░░ rates the markets can ░░░░░░░░ a temporary negative reaction ░░░░░░░░ I m watching I ░░░░░░░░ wrauching ingwatching two ye ░░░░░░░░ I think it can ░░░░░░░░ down to 4 3 ░░░░░░░░ If we ever break ░░░░░░░░ 3 5 to me ░░░░░░░░ early warning sign the ░░░░░░░░ s pricing in a ░░░░░░░░ We are starting to ░░░░░░░░ data slow Consumer slow ░░░░░░░░ manufacturing slow Even though ░░░░░░░░ had a good GDP ░░░░░░░░ it looks like GDP ░░░░░░░░ modestly be slowing I ░░░░░░░░ not concerned about this ░░░░░░░░ but we re going ░░░░░░░░ start pricing in 2025 ░░░░░░░░ terms of earnings and ░░░░░░░░ economy and what the ░░░░░░░░ is going to do ░░░░░░░░ the real risk is ░░░░░░░░ 2025 Not this year ░░░░░░░░ what do you think ░░░░░░░░ should be thinking about ░░░░░░░░ the Fed next week ░░░░░░░░ the chairman speaking next ░░░░░░░░ with the meeting What ░░░░░░░░ this number today kind ░░░░░░░░ mean for any of ░░░░░░░░ I mean I expect ░░░░░░░░ to talk with there ░░░░░░░░ an increasing confidence that ░░░░░░░░ Federal Reserve can reduce ░░░░░░░░ rates I think they ░░░░░░░░ on track for September ░░░░░░░░ rate cut I think ░░░░░░░░ the market is priced ░░░░░░░░ way and I ve ░░░░░░░░ heard much from the ░░░░░░░░ that would really cause ░░░░░░░░ dissuade from the market ░░░░░░░░ where it s now ░░░░░░░░ bunch of data to ░░░░░░░░ in October I think ░░░░░░░░ s going to say ░░░░░░░░ re on the right ░░░░░░░░ for that but I ░░░░░░░░ t think he s ░░░░░░░░ to commit to it ░░░░░░░░ the markets are set ░░░░░░░░ for what next week ░░░░░░░░ I think that what ░░░░░░░░ want to continue to ░░░░░░░░ attention to is the ░░░░░░░░ moves that we ve ░░░░░░░░ in yield curves Specifically ░░░░░░░░ and tens Wasn t ░░░░░░░░ long ago minus 50 ░░░░░░░░ like it s hovering ░░░░░░░░ now around minus 18 ░░░░░░░░ s been as low ░░░░░░░░ minus 12 minus 13 ░░░░░░░░ several sessions ago The ░░░░░░░░ that has been discussed ░░░░░░░░ by Mary Ann is ░░░░░░░░ Short maturities definitely will ░░░░░░░░ really honing in on ░░░░░░░░ potential of the economy ░░░░░░░░ continue to weaken But ░░░░░░░░ big players are really ░░░░░░░░ at all trades in ░░░░░░░░ context of maturities If ░░░░░░░░ re bullish on the ░░░░░░░░ year price going up ░░░░░░░░ down putting steepeners on ░░░░░░░░ the Fed starts cutting ░░░░░░░░ or sell how the ░░░░░░░░ moves between twos and ░░░░░░░░ Many suspect the catalyst ░░░░░░░░ pushes it back into ░░░░░░░░ territory Mary Ann all ░░░░░░░░ that I mean you ░░░░░░░░ even though you think ░░░░░░░░ s potential for pullback ░░░░░░░░ 10 to 12 overall ░░░░░░░░ the S P 500 ░░░░░░░░ still like equities more ░░░░░░░░ fixed income Still like ░░░░░░░░ income more than cash ░░░░░░░░ would be telling people ░░░░░░░░ just wait on the ░░░░░░░░ and jump in when ░░░░░░░░ see that pullback Well ░░░░░░░░ So if you do ░░░░░░░░ cash on the sidelines ░░░░░░░░ you want to lock ░░░░░░░░ interest rates now s ░░░░░░░░ time to do it ░░░░░░░░ do like fixed income ░░░░░░░░ part of the curve ░░░░░░░░ m still very bullish ░░░░░░░░ and so I m ░░░░░░░░ overweight equities Although we ░░░░░░░░ taken down our weighting ░░░░░░░░ little bit but I ░░░░░░░░ say overweight between now ░░░░░░░░ the end of the ░░░░░░░░ This is a period ░░░░░░░░ have phenomenal returns between ░░░░░░░░ and end of the ░░░░░░░░ Led by technology Even ░░░░░░░░ we re seeing these ░░░░░░░░ correct they re correcting ░░░░░░░░ they are expensive There ░░░░░░░░ concern about when the ░░░░░░░░ will hit on a ░░░░░░░░ but we saw this ░░░░░░░░ the internet process This ░░░░░░░░ a process we ve ░░░░░░░░ stocks go um and ░░░░░░░░ but I think the ░░░░░░░░ stays up All right ░░░░░░░░ Ann rick Steve thank ░░░░░░░░ all.