RUSH TRANSCRIPT Getting there ░░░░░░░░ here A reality We ░░░░░░░░ back We re green ░░░░░░░░ the board As stocks ░░░░░░░░ to extend their rebound ░░░░░░░░ the deep six sell ░░░░░░░░ earlier in the week ░░░░░░░░ by the way yesterday ░░░░░░░░ post fed sell off ░░░░░░░░ well Has it created ░░░░░░░░ buying opportunity That s ░░░░░░░░ our next guest is ░░░░░░░░ And outside the tech ░░░░░░░░ joining me now is ░░░░░░░░ saperstein of treasury partners ░░░░░░░░ to see you again ░░░░░░░░ So you ve liked ░░░░░░░░ cap for a long ░░░░░░░░ even when you were ░░░░░░░░ on the market it ░░░░░░░░ you were kind of ░░░░░░░░ out in munis and ░░░░░░░░ and in the megacaps ░░░░░░░░ any of your view ░░░░░░░░ as a result of ░░░░░░░░ events of this week ░░░░░░░░ at all In fact ░░░░░░░░ creates opportunity Why add ░░░░░░░░ if The cost Of ░░░░░░░░ these AI models goes ░░░░░░░░ It will only Increase ░░░░░░░░ And search right So ░░░░░░░░ adds benefit To large ░░░░░░░░ tech And utilities Because ░░░░░░░░ cap tech Now will ░░░░░░░░ a lower capex Costs ░░░░░░░░ forward So it becomes ░░░░░░░░ efficient And in the ░░░░░░░░ Sector there s Just ░░░░░░░░ opportunity right now What ░░░░░░░░ you just need less ░░░░░░░░ to deal with all ░░░░░░░░ this If you don ░░░░░░░░ need the most expensive ░░░░░░░░ most powerful chips maybe ░░░░░░░░ don t need the ░░░░░░░░ power that you what ░░░░░░░░ did as well That ░░░░░░░░ where the market s ░░░░░░░░ it wrong Because 60 ░░░░░░░░ the Future power Needs ░░░░░░░░ Actually going to come ░░░░░░░░ Non AI related Consumption ░░░░░░░░ electrification onshoring or new ░░░░░░░░ electric vehicles So that ░░░░░░░░ from AI is going ░░░░░░░░ actually increase because adoption ░░░░░░░░ increase They ll still ░░░░░░░░ blackwell chips And listen ░░░░░░░░ you listen To the ░░░░░░░░ call they said what ░░░░░░░░ you constrained in It ░░░░░░░░ not only gpus it ░░░░░░░░ power And this is ░░░░░░░░ the opportunity is that ░░░░░░░░ market has missed this ░░░░░░░░ So if anything you ░░░░░░░░ look at some of ░░░░░░░░ sell off and buy ░░░░░░░░ rather than get overly ░░░░░░░░ and sort of move ░░░░░░░░ of any of these ░░░░░░░░ Well take vistra In ░░░░░░░░ a long time That ░░░░░░░░ a utility that last ░░░░░░░░ was one of the ░░░░░░░░ performing stocks in the ░░░░░░░░ P 500 It was ░░░░░░░░ like 400 or something ░░░░░░░░ that degree that story ░░░░░░░░ t changed at all ░░░░░░░░ we bought the stock ░░░░░░░░ in 2021 and in ░░░░░░░░ 20s and it went ░░░░░░░░ to 200 last week ░░░░░░░░ was up eight times ░░░░░░░░ it came down about ░░░░░░░░ now the cash flow ░░░░░░░░ still 12 operating cash ░░░░░░░░ There s tremendous opportunity ░░░░░░░░ announcements they can make ░░░░░░░░ that opportunity in vistra ░░░░░░░░ still there And we ░░░░░░░░ it to it earlier ░░░░░░░░ week after it came ░░░░░░░░ You did So you ░░░░░░░░ the sell off particularly ░░░░░░░░ it relates to those ░░░░░░░░ stocks was was way ░░░░░░░░ because they were all ░░░░░░░░ and all down a ░░░░░░░░ And it was a ░░░░░░░░ great opportunity It still ░░░░░░░░ today We added to ░░░░░░░░ only vistra but the ░░░░░░░░ area the independent power ░░░░░░░░ that are generating cash ░░░░░░░░ that can co locate ░░░░░░░░ centers that have nuclear ░░░░░░░░ Okay Those are the ░░░░░░░░ to focus on What ░░░░░░░░ the rest of the ░░░░░░░░ Are you are you ░░░░░░░░ with where we are ░░░░░░░░ do you feel opportunistic ░░░░░░░░ where we re going ░░░░░░░░ s what we re ░░░░░░░░ to clients about Stocks ░░░░░░░░ at 22 times earnings ░░░░░░░░ the backdrop of a ░░░░░░░░ economy solid employment declining ░░░░░░░░ and a fed on ░░░░░░░░ So the backdrop is ░░░░░░░░ Yet stocks are expensive ░░░░░░░░ we re overweight large ░░░░░░░░ tech So clients that ░░░░░░░░ an allocation to equities ░░░░░░░░ 40 and it s ░░░░░░░░ 50 we re talking ░░░░░░░░ them about trimming and ░░░░░░░░ that money into 4 ░░░░░░░░ free bonds right now ░░░░░░░░ keeping a core allocation ░░░░░░░░ taking advantage of what ░░░░░░░░ what s the opportunity ░░░░░░░░ in municipal bonds So ░░░░░░░░ you still like munis ░░░░░░░░ And you and you ░░░░░░░░ think you think 50 ░░░░░░░░ your portfolio in equities ░░░░░░░░ too high right now ░░░░░░░░ depends on the client ░░░░░░░░ a client is set ░░░░░░░░ with an asset allocation ░░░░░░░░ 50 it goes up ░░░░░░░░ 60 it s time ░░░░░░░░ discuss trimming it back ░░░░░░░░ that s not saying ░░░░░░░░ could be 1 or ░░░░░░░░ to get out of ░░░░░░░░ opportunity of artificial intelligence ░░░░░░░░ mean we have seen ░░░░░░░░ the last 20 years ░░░░░░░░ from digitization to mobility ░░░░░░░░ internet to mobile to ░░░░░░░░ cloud and now we ░░░░░░░░ in at the forefront ░░░░░░░░ artificial intelligence We re ░░░░░░░░ looking to step off ░░░░░░░░ that Okay So it ░░░░░░░░ important to keep a ░░░░░░░░ in large cap technology ░░░░░░░░ look at the overall ░░░░░░░░ every client wants to ░░░░░░░░ But you re making ░░░░░░░░ is essentially a valuation ░░░░░░░░ So do you not ░░░░░░░░ mean I get the ░░░░░░░░ that well you can ░░░░░░░░ really have any more ░░░░░░░░ expansion I mean how ░░░░░░░░ you going to do ░░░░░░░░ Are you doubtful that ░░░░░░░░ are going to be ░░░░░░░░ enough to justify more ░░░░░░░░ higher that sort of ░░░░░░░░ where the multiple currently ░░░░░░░░ The earnings expectations are ░░░░░░░░ 14 growth this year ░░░░░░░░ next year And you ░░░░░░░░ that s too much ░░░░░░░░ think the economy is ░░░░░░░░ very well It s ░░░░░░░░ But the decision to ░░░░░░░░ very slightly for clients ░░░░░░░░ just simply some clients ░░░░░░░░ have a focus on ░░░░░░░░ return of capital is ░░░░░░░░ important than the return ░░░░░░░░ the capital Well that ░░░░░░░░ because you have you ░░░░░░░░ very Very wealthy clients ░░░░░░░░ s why And you ░░░░░░░░ well that s why ░░░░░░░░ re number four on ░░░░░░░░ I think you re ░░░░░░░░ four on the top ░░░░░░░░ financial advisors list last ░░░░░░░░ for barron s We ░░░░░░░░ all sorts of clients ░░░░░░░░ you though And our ░░░░░░░░ is to really align ░░░░░░░░ with their risk metrics ░░░░░░░░ how much volatility they ░░░░░░░░ to take What about ░░░░░░░░ broadening story Do you ░░░░░░░░ in it Not so ░░░░░░░░ You just said the ░░░░░░░░ is strong Our overweight ░░░░░░░░ in utilities and large ░░░░░░░░ tech We do own ░░░░░░░░ value component in our ░░░░░░░░ but we re long ░░░░░░░░ holders of technology and ░░░░░░░░ has been amazing It ░░░░░░░░ continue to be amazing ░░░░░░░░ the Fed chair say ░░░░░░░░ yesterday that you know ░░░░░░░░ your eye that that ░░░░░░░░ you know what That ░░░░░░░░ that s important I ░░░░░░░░ to pay attention more ░░░░░░░░ that No the Fed ░░░░░░░░ is a big yawn ░░░░░░░░ now which is good ░░░░░░░░ don t think the ░░░░░░░░ needs rate cuts to ░░░░░░░░ higher It needs earnings ░░░░░░░░ s the bouncing ball ░░░░░░░░ and operating cash flow ░░░░░░░░ what to follow So ░░░░░░░░ Fed could be on ░░░░░░░░ And that to me ░░░░░░░░ perfect I mean if ░░░░░░░░ think the next move ░░░░░░░░ eventually going to be ░░░░░░░░ cut Isn t that ░░░░░░░░ for stocks potentially But ░░░░░░░░ s the issue For ░░░░░░░░ we were worried about ░░░░░░░░ Fed tightening 500 basis ░░░░░░░░ Is it going to ░░░░░░░░ recession What s it ░░░░░░░░ to do to earnings ░░░░░░░░ that was 24 and ░░░░░░░░ story in in 25 ░░░░░░░░ re concerned about actual ░░░░░░░░ s policies and how ░░░░░░░░ will impact different sectors ░░░░░░░░ the market So risks ░░░░░░░░ changed economies strong fed ░░░░░░░░ out of the picture ░░░░░░░░ s focus on what ░░░░░░░░ coming out of Washington ░░░░░░░░ new policies Take care ░░░░░░░░ those very wealthy clients ░░░░░░░░ yours okay Looking forward ░░░░░░░░ you being one Yeah ░░░░░░░░ four on the barron ░░░░░░░░ top 100 financial advisors ░░░░░░░░ of 2024 is Richard ░░░░░░░░ of hightower It s ░░░░░░░░ to see you again ░░░░░░░░ Scott All right Thanks ░░░░░░░░ next hedge fund Elliott ░░░░░░░░ a warning on crypto ░░░░░░░░ We do have those ░░░░░░░░ next.