When the read today ░░░░░░░░ up some earlier gains ░░░░░░░░ three major indices struggling ░░░░░░░░ recover losses from Monday ░░░░░░░░ off or at least ░░░░░░░░ back up the gains ░░░░░░░░ yesterday few bright spots ░░░░░░░░ tech today apple s ░░░░░░░░ the pack Amazon and ░░░░░░░░ better still green as ░░░░░░░░ You see what those ░░░░░░░░ are doing at this ░░░░░░░░ My next guest holds ░░░░░░░░ of a says now ░░░░░░░░ the time to buy ░░░░░░░░ dip to join him ░░░░░░░░ out Nine Rick Sacra ░░░░░░░░ of treasury partners get ░░░░░░░░ see you back here ░░░░░░░░ you re must have ░░░░░░░░ going crazy on Monday ░░░░░░░░ just giving we said ░░░░░░░░ you re one of ░░░░░░░░ top five advisors right ░░░░░░░░ by and so can ░░░░░░░░ give me an idea ░░░░░░░░ what this week s ░░░░░░░░ like for you Well ░░░░░░░░ first experience with an ░░░░░░░░ popping decline like this ░░░░░░░░ back in 80 seven ░░░░░░░░ see many of them ░░░░░░░░ then and we develop ░░░░░░░░ playbook to deal with ░░░░░░░░ this and guard client ░░░░░░░░ and starts with the ░░░░░░░░ The catalyst here was ░░░░░░░░ a disproportionate decline in ░░░░░░░░ market relative to the ░░░░░░░░ economic data so lightly ░░░░░░░░ because we re 20 ░░░░░░░░ 20 three times earnings ░░░░░░░░ really it s type ░░░░░░░░ volatility We re going ░░░░░░░░ going forward Now my ░░░░░░░░ rings and it s ░░░░░░░░ about asset allocation It ░░░░░░░░ about the move we ░░░░░░░░ last year where we ░░░░░░░░ to long term tax ░░░░░░░░ municipal bonds at four ░░░░░░░░ and a half percent ░░░░░░░░ clients wanting to be ░░░░░░░░ and possibly reallocating back ░░░░░░░░ the stock market Will ░░░░░░░░ a buyer on Monday ░░░░░░░░ We think about an ░░░░░░░░ concept called two steps ░░░░░░░░ a stumble and so ░░░░░░░░ have a market We ░░░░░░░░ we still fully invested ░░░░░░░░ yeah but market which ░░░░░░░░ down there are some ░░░░░░░░ there s some issues ░░░░░░░░ s value but I ░░░░░░░░ like to see things ░░░░░░░░ out First before we ░░░░░░░░ committing more cap do ░░░░░░░░ think make oh cat ░░░░░░░░ which we re showing ░░░░░░░░ the screen right now ░░░░░░░░ we said that you ░░░░░░░░ A lot of these ░░░░░░░░ did just that need ░░░░░░░░ and your words settle ░░░░░░░░ more yeah the I ░░░░░░░░ like to see that ░░░░░░░░ we still like the ░░░░░░░░ I mean Where do ░░░░░░░░ fine Let s take ░░░░░░░░ Microsoft and Amazon cloud ░░░░░░░░ They do a hundred ░░░░░░░░ A year grew 30 ░░░░░░░░ quarter over quarter now ░░░░░░░░ billion dollar business would ░░░░░░░░ a some p 30 ░░░░░░░░ company growing 30 percent ░░░░░░░░ year so many investors ░░░░░░░░ under way large cap ░░░░░░░░ and that s really ░░░░░░░░ the opportunities for investors ░░░░░░░░ do not own enough ░░░░░░░░ these names they should ░░░░░░░░ experience exposure to when ░░░░░░░░ say investors don t ░░░░░░░░ enough of these names ░░░░░░░░ re kind of investors ░░░░░░░░ we talking about because ░░░░░░░░ feels at this point ░░░░░░░░ though everybody owns these ░░░░░░░░ not really because there ░░░░░░░░ a lot of investors ░░░░░░░░ are underway large cap ░░░░░░░░ and so they might ░░░░░░░░ biotech or other exposures ░░░░░░░░ cap made cap international ░░░░░░░░ really it s very ░░░░░░░░ understand where there s ░░░░░░░░ of cash flow where ░░░░░░░░ s opportunity in the ░░░░░░░░ and evans be rather ░░░░░░░░ right now what about ░░░░░░░░ But these names top ░░░░░░░░ the programs It Read ░░░░░░░░ list Of how much ░░░░░░░░ of come in as ░░░░░░░░ stocks pulled back from ░░░░░░░░ bit of double digit ░░░░░░░░ point declines No question ░░░░░░░░ are stretched market price ░░░░░░░░ 15 percent or earnings ░░░░░░░░ year over year and ░░░░░░░░ s that s the ░░░░░░░░ why we re seeing ░░░░░░░░ this volatility which should ░░░░░░░░ The year what you ░░░░░░░░ that valuations are still ░░░░░░░░ yeah see the in ░░░░░░░░ stocks yeah So we ░░░░░░░░ at the cash flow ░░░░░░░░ the growth of the ░░░░░░░░ flow but multiples of ░░░░░░░░ These talks and there ░░░░░░░░ still a lot of ░░░░░░░░ of opportunity in the ░░░░░░░░ right Okay so where ░░░░░░░░ that well we been ░░░░░░░░ two eggs to utilities ░░░░░░░░ we started with the ░░░░░░░░ on utilities is long ░░░░░░░░ secular inc Crease in ░░░░░░░░ and where underpowered in ░░░░░░░░ country so we own ░░░░░░░░ names next era and ░░░░░░░░ we ve own districts ░░░░░░░░ 20 20 one It ░░░░░░░░ a 20 five billion ░░░░░░░░ company four billion and ░░░░░░░░ cash flow Two point ░░░░░░░░ billion in free cash ░░░░░░░░ returning it to shareholders ░░░░░░░░ keep in mind our ░░░░░░░░ or in two states ░░░░░░░░ I have net immigration ░░░░░░░░ immigration Florida and Texas ░░░░░░░░ when you are highlighting ░░░░░░░░ that screams defensive is ░░░░░░░░ what you think the ░░░░░░░░ strategy is right now ░░░░░░░░ to be defensive if ░░░░░░░░ re gonna buy anything ░░░░░░░░ buy those types of ░░░░░░░░ Well when you look ░░░░░░░░ a portfolio of 20 ░░░░░░░░ 30 stocks and you ░░░░░░░░ got a broad now ░░░░░░░░ name Ames one sector ░░░░░░░░ really don t have ░░░░░░░░ and was utilities so ░░░░░░░░ just added next terror ░░░░░░░░ been a long term ░░░░░░░░ of district but think ░░░░░░░░ the cloud think about ░░░░░░░░ I and the concentric ░░░░░░░░ of opportunity around it ░░░░░░░░ think about services accenture ░░░░░░░░ ibm Think about the ░░░░░░░░ generating so the utilities ░░░░░░░░ there s a lot ░░░░░░░░ opportunity If you just ░░░░░░░░ past the core cloud ░░░░░░░░ Like the big four ░░░░░░░░ s so what s ░░░░░░░░ reasonable valuation Do you ░░░░░░░░ for the overall market ░░░░░░░░ you know people are ░░░░░░░░ 20 one times was ░░░░░░░░ way too expensive relative ░░░░░░░░ where earnings were really ░░░░░░░░ to come in what ░░░░░░░░ more reasonable and how ░░░░░░░░ away are we from ░░░░░░░░ Historically 16 okay but ░░░░░░░░ it sixty That s ░░░░░░░░ but now that you ░░░░░░░░ Concentration large cap tag ░░░░░░░░ a third of the ░░░░░░░░ selling at higher multiples ░░░░░░░░ higher growth rates You ░░░░░░░░ gotta raise that higher ░░░░░░░░ where we are at ░░░░░░░░ two 20 three little ░░░░░░░░ for me but we ░░░░░░░░ own the stocks and ░░░░░░░░ re still fully invested ░░░░░░░░ about bonds The attractiveness ░░░░░░░░ them today given rates ░░░░░░░░ coming down now obviously ░░░░░░░░ bounce back up But ░░░░░░░░ s your take their ░░░░░░░░ less year there was ░░░░░░░░ opportunity to add four ░░░░░░░░ four and a half ░░░░░░░░ tax free Long term ░░░░░░░░ and which you which ░░░░░░░░ did we bought a ░░░░░░░░ about Right now that ░░░░░░░░ down to a three ░░░░░░░░ five three six the ░░░░░░░░ So the bonds of ░░░░░░░░ up in value I ░░░░░░░░ one of the biggest ░░░░░░░░ was is flattering Three ░░░░░░░░ months treasuries and getting ░░░░░░░░ five and eight percent ░░░░░░░░ now that rates are ░░░░░░░░ down what do you ░░░░░░░░ with that money so ░░░░░░░░ now or what we ░░░░░░░░ doing is we re ░░░░░░░░ housing bonds were still ░░░░░░░░ to achieve over four ░░░░░░░░ and tax free housing ░░░░░░░░ which is still an ░░░░░░░░ opportunity You re subject ░░░░░░░░ Congress and other than ░░░░░░░░ were buying more three ░░░░░░░░ six year paper pulp ░░░░░░░░ and taxable and the ░░░░░░░░ free side good To ░░░░░░░░ again thanks for coming ░░░░░░░░ it s my pleasure ░░░░░░░░ Christine.
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