RUSH TRANSCRIPT Laughter Charles ░░░░░░░░ All right buddy Big ░░░░░░░░ surprise story also has ░░░░░░░░ at least the last ░░░░░░░░ months the rotation trade ░░░░░░░░ real estate industrials Check ░░░░░░░░ out they are just ░░░░░░░░ They re leading the ░░░░░░░░ right now and well ░░░░░░░░ know this is the ░░░░░░░░ they expect it to ░░░░░░░░ going But I ve ░░░░░░░░ to tell you my ░░░░░░░░ guest says this rotation ░░░░░░░░ the market is actually ░░░░░░░░ the death of diversification ░░░░░░░░ want to bring in ░░░░░░░░ wealth management if cio ░░░░░░░░ lance berg Michael I ░░░░░░░░ it was a profound ░░░░░░░░ but you re saying ░░░░░░░░ s a different kind ░░░░░░░░ diversification I m going ░░░░░░░░ bring this up for ░░░░░░░░ audience There s a ░░░░░░░░ based on themes and ░░░░░░░░ sector diversification right in ░░░░░░░░ I think what people ░░░░░░░░ confusing is they ll ░░░░░░░░ well we ve got ░░░░░░░░ we ve got industrials ░░░░░░░░ got reits and they ░░░░░░░░ all a a I ░░░░░░░░ Having a data center ░░░░░░░░ not really a real ░░░░░░░░ play it s an ░░░░░░░░ I play Having a ░░░░░░░░ strongly tied to data ░░░░░░░░ center growth or industrials ░░░░░░░░ are electrification those aren ░░░░░░░░ real industrials It show ░░░░░░░░ up in the first ░░░░░░░░ months of this quarter ░░░░░░░░ and August or when ░░░░░░░░ was not doing well ░░░░░░░░ lot of those correlated ░░░░░░░░ a I type reits ░░░░░░░░ did poorly It was ░░░░░░░░ risk Charles but having ░░░░░░░░ that will the funds ░░░░░░░░ to these other areas ░░░░░░░░ your point we ve ░░░░░░░░ an excuse particularly utilities ░░░░░░░░ re a the traditional ░░░░░░░░ haven they pay a ░░░░░░░░ dividend if you re ░░░░░░░░ out of coming out ░░░░░░░░ for instance money markets ░░░░░░░░ you get the added ░░░░░░░░ of the electricity crisis ░░░░░░░░ money be able the ░░░░░░░░ out of these areas ░░░░░░░░ though they they may ░░░░░░░░ overvalued on an absolute ░░░░░░░░ I think so If ░░░░░░░░ a 30 or 40 ░░░░░░░░ allocation to tech and ░░░░░░░░ you re adding all ░░░░░░░░ tech exposure on the ░░░░░░░░ of it there s ░░░░░░░░ a problem to add ░░░░░░░░ centers add electrification on ░░░░░░░░ side of it and ░░░░░░░░ keep your allocation norm ░░░░░░░░ do think there s ░░░░░░░░ a play for real ░░░░░░░░ and utilities You re ░░░░░░░░ to see money market ░░░░░░░░ going down getting some ░░░░░░░░ or reit exposure I ░░░░░░░░ makes a lot of ░░░░░░░░ here because we ll ░░░░░░░░ increasing income coming in ░░░░░░░░ clients Charles I think ░░░░░░░░ actually shared these ideas ░░░░░░░░ us last time Let ░░░░░░░░ just talk for a ░░░░░░░░ Gallagher I don t ░░░░░░░░ a lot of people ░░░░░░░░ familiar with it even ░░░░░░░░ it s a well ░░░░░░░░ insurance name It s ░░░░░░░░ insurance broker What I ░░░░░░░░ about the story is ░░░░░░░░ know your previous guest ░░░░░░░░ about the services number ░░░░░░░░ s been interesting is ░░░░░░░░ in insurance has been ░░░░░░░░ digits It was north ░░░░░░░░ 20 now it s ░░░░░░░░ the high teens That ░░░░░░░░ really good for brokers ░░░░░░░░ make a ton of ░░░░░░░░ because a lot of ░░░░░░░░ insurance you have to ░░░░░░░░ So arthur Gallagher does ░░░░░░░░ lot of business with ░░░░░░░░ lot of different companies ░░░░░░░░ insurance is one of ░░░░░░░░ things as prices go ░░░░░░░░ I their margins seem ░░░░░░░░ go up We think ░░░░░░░░ s a good place ░░░░░░░░ be I don t ░░░░░░░░ insurance premiums coming down ░░░░░░░░ what s happening with ░░░░░░░░ storm That s probably ░░░░░░░░ area you want exposure ░░░░░░░░ the Charles right before ░░░░░░░░ Phil thinks the China ░░░░░░░░ is a trade at ░░░░░░░░ You like9 longer like ░░░░░░░░ longer term It s ░░░░░░░░ to me because you ░░░░░░░░ got one Chinese name ░░░░░░░░ m not familiar with ░░░░░░░░ we know hermes and ░░░░░░░░ Wynn I think was ░░░░░░░░ number one performing stock ░░░░░░░░ all the S P ░░░░░░░░ maybe 70 of their ░░░░░░░░ so if there s ░░░░░░░░ way for Americans to ░░░░░░░░ this without necessarily having ░░░░░░░░ even dive into the ░░░░░░░░ market right Absolutely Charles ░░░░░░░░ not a big fan ░░░░░░░░ owning I m not ░░░░░░░░ big fan of owning ░░░░░░░░ stocks The communist party ░░░░░░░░ the rules We had ░░░░░░░░ good story a few ░░░░░░░░ a with the education ░░░░░░░░ they decided to change ░░░░░░░░ rules arbitrarily I d ░░░░░░░░ two the or three ░░░░░░░░ out of the country ░░░░░░░░ every one you have ░░░░░░░░ China Wynn obviously they ░░░░░░░░ a vip scenario 65 ░░░░░░░░ their revenue comes from ░░░░░░░░ Hermes is another story ░░░░░░░░ get business in China ░░░░░░░░ their 30 stores but ░░░░░░░░ also get a lot ░░░░░░░░ business from the Chinese ░░░░░░░░ all I across the ░░░░░░░░ the world and there ░░░░░░░░ a lot of margin ░░░░░░░░ 12 000 hand handbags ░░░░░░░░ yeah Hey good stuff ░░░░░░░░ Michael as usual Let ░░░░░░░░ talk again real soon ░░░░░░░░ pleasure.