RUSH TRANSCRIPT When trade ░░░░░░░░ stateside Glenn Smith is ░░░░░░░░ of gds wealth management ░░░░░░░░ us with his take ░░░░░░░░ things Glenn lovely to ░░░░░░░░ you on the show ░░░░░░░░ you very much for ░░░░░░░░ time What is your ░░░░░░░░ read on how to ░░░░░░░░ for next week Really ░░░░░░░░ the wake of those ░░░░░░░░ tariffs which President Trump ░░░░░░░░ administration have time and ░░░░░░░░ again said are universal ░░░░░░░░ we re going to ░░░░░░░░ It could be in ░░░░░░░░ phases and it s ░░░░░░░░ very fluid Right There ░░░░░░░░ different reasons for potential ░░░░░░░░ pullback This uh last ░░░░░░░░ years on average basically ░░░░░░░░ world war two the ░░░░░░░░ every every year has ░░░░░░░░ a 14 drop So ░░░░░░░░ 10 while the reason ░░░░░░░░ the tariffs is a ░░░░░░░░ bit different there s ░░░░░░░░ a reason for the ░░░░░░░░ to be a little ░░░░░░░░ volatile We re trying ░░░░░░░░ digest all the information ░░░░░░░░ we think there s ░░░░░░░░ to be certain sectors ░░░░░░░░ there that could be ░░░░░░░░ with this certain sectors ░░░░░░░░ are going to be ░░░░░░░░ Um so we re ░░░░░░░░ trying to take advantage ░░░░░░░░ it A lot of ░░░░░░░░ out there right now ░░░░░░░░ already priced as if ░░░░░░░░ of the tariffs are ░░░░░░░░ to be in place ░░░░░░░░ into perpetuity There s ░░░░░░░░ lot of stocks that ░░░░░░░░ dropped So you can ░░░░░░░░ that to your advantage ░░░░░░░░ be picky and try ░░░░░░░░ try to buy things ░░░░░░░░ sale on discount on ░░░░░░░░ Okay so what are ░░░░░░░░ looking at What s ░░░░░░░░ shopping list like There ░░░░░░░░ many stocks So one ░░░░░░░░ stock specifically I ll ░░░░░░░░ an example as a ░░░░░░░░ I mentioned hewlett packard ░░░░░░░░ Uh it s a ░░░░░░░░ unique It partnered up ░░░░░░░░ nvidia uh last year ░░░░░░░░ we think that s ░░░░░░░░ to be a huge ░░░░░░░░ They manage a data ░░░░░░░░ storage cloud services This ░░░░░░░░ a way to be ░░░░░░░░ AI in the cloud ░░░░░░░░ a stock that doesn ░░░░░░░░ have a crazy multiple ░░░░░░░░ some of these other ░░░░░░░░ technology stocks It has ░░░░░░░░ bit of a dividend ░░░░░░░░ and in fact they ░░░░░░░░ growing at double digits ░░░░░░░░ year The reason they ░░░░░░░░ down is they did ░░░░░░░░ their guidance for 2025 ░░░░░░░░ one of the main ░░░░░░░░ the CEO mention and ░░░░░░░░ the tariff So if ░░░░░░░░ s already priced in ░░░░░░░░ a large extent this ░░░░░░░░ be an opportunity Uh ░░░░░░░░ a catastrophe Glenn do ░░░░░░░░ feel that the bottom ░░░░░░░░ already in for this ░░░░░░░░ We never we never ░░░░░░░░ our finger on exact ░░░░░░░░ it s going to ░░░░░░░░ on the S P ░░░░░░░░ What we re trying ░░░░░░░░ do is take a ░░░░░░░░ terme approach Um it ░░░░░░░░ been it s been ░░░░░░░░ uh a lot of ░░░░░░░░ going on in the ░░░░░░░░ 90 days So we ░░░░░░░░ trying to digest it ░░░░░░░░ look at where are ░░░░░░░░ going to make the ░░░░░░░░ money for our clients ░░░░░░░░ the next 4 or ░░░░░░░░ years Not over the ░░░░░░░░ six weeks per se ░░░░░░░░ in two months the ░░░░░░░░ conversation may totally change ░░░░░░░░ we re not trying ░░░░░░░░ exactly predict the exact ░░░░░░░░ but just to realize ░░░░░░░░ investors there s always ░░░░░░░░ opportunities And last thing ░░░░░░░░ know you probably saw ░░░░░░░░ it was just announced ░░░░░░░░ consumer sentiment was down ░░░░░░░░ s actually a good ░░░░░░░░ you know that the ░░░░░░░░ sentiment is the lowest ░░░░░░░░ s been since 2013 ░░░░░░░░ S P forecast since ░░░░░░░░ Why is that a ░░░░░░░░ thing That s a ░░░░░░░░ number Historically when consumer ░░░░░░░░ is poor stocks tend ░░░░░░░░ do fairly well because ░░░░░░░░ sentiment is rear view ░░░░░░░░ So we I m ░░░░░░░░ saying we are in ░░░░░░░░ bottom but we see ░░░░░░░░ lot of opportunity And ░░░░░░░░ don t want to ░░░░░░░░ to be cute and ░░░░░░░░ the bottom You just ░░░░░░░░ to start picking stocks ░░░░░░░░ are on your shopping ░░░░░░░░ as as you as ░░░░░░░░ see opportunities you ve ░░░░░░░░ got JP Morgan on ░░░░░░░░ shopping list right That ░░░░░░░░ right JP Morgan s ░░░░░░░░ one of our favorite ░░░░░░░░ for a while Um ░░░░░░░░ interest margins Amazing With ░░░░░░░░ tariffs we think there ░░░░░░░░ going to be some ░░░░░░░░ which is going to ░░░░░░░░ be uh great for ░░░░░░░░ whole market in general ░░░░░░░░ but that means that ░░░░░░░░ rates won t come ░░░░░░░░ quite as quickly So ░░░░░░░░ net interest margins for ░░░░░░░░ financial sector that might ░░░░░░░░ a little bit of ░░░░░░░░ silver lining Um for ░░░░░░░░ the net interest margin ░░░░░░░░ be high Mergers and ░░░░░░░░ should pick up even ░░░░░░░░ JP Morgan is up ░░░░░░░░ over the last 12 ░░░░░░░░ We think it s ░░░░░░░░ super attractive as a ░░░░░░░░ of 12 Uh has ░░░░░░░░ dividend So even if ░░░░░░░░ re in a secular ░░░░░░░░ market for the next ░░░░░░░░ you re still making ░░░░░░░░ towards your towards your ░░░░░░░░ And you ve already ░░░░░░░░ another name there that ░░░░░░░░ can talk about on ░░░░░░░░ list When we come ░░░░░░░░ But we ve got ░░░░░░░░ take a Well let ░░░░░░░░ get back to our ░░░░░░░░ Waiting in the wings ░░░░░░░░ have Glenn Smith who ░░░░░░░░ the cio of gd ░░░░░░░░ wealth management Glenn thank ░░░░░░░░ so much for patiently ░░░░░░░░ by You were telling ░░░░░░░░ earlier how it s ░░░░░░░░ to time the markets ░░░░░░░░ and it s also ░░░░░░░░ to know whether or ░░░░░░░░ a couple of weeks ░░░░░░░░ we saw the bottom ░░░░░░░░ put in for this ░░░░░░░░ the best thing you ░░░░░░░░ do or the wise ░░░░░░░░ to do is to ░░░░░░░░ and use these pullbacks ░░░░░░░░ get some stocks that ░░░░░░░░ been oversold and are ░░░░░░░░ sale You ve got ░░░░░░░░ one on your shopping ░░░░░░░░ a monolithic power systems ░░░░░░░░ do you like it ░░░░░░░░ it comes to semiconductors ░░░░░░░░ main one everybody talks ░░░░░░░░ is nvidia And rightfully ░░░░░░░░ Uh the gpus it ░░░░░░░░ in vast quantity at ░░░░░░░░ prices is very powerful ░░░░░░░░ being said there s ░░░░░░░░ other semiconductors in that ░░░░░░░░ that are attractive One ░░░░░░░░ the favorites is monolithic ░░░░░░░░ which you mentioned What ░░░░░░░░ does It s semiconductors ░░░░░░░░ energy make make products ░░░░░░░░ energy efficient whether it ░░░░░░░░ cars uh phones refrigerators ░░░░░░░░ that has a semiconductor ░░░░░░░░ it it can make ░░░░░░░░ way more efficient They ░░░░░░░░ not the biggest in ░░░░░░░░ space That s going ░░░░░░░░ be Texas instruments But ░░░░░░░░ ve been growing much ░░░░░░░░ rapidly Um and I ░░░░░░░░ the price of the ░░░░░░░░ over the last few ░░░░░░░░ shows shows justifies um ░░░░░░░░ it s been growing ░░░░░░░░ much so we think ░░░░░░░░ s a unique spot ░░░░░░░░ be in a semiconductor ░░░░░░░░ that it s priced ░░░░░░░░ more reasonably 17 times ░░░░░░░░ Got a bit of ░░░░░░░░ bit of dividend Um ░░░░░░░░ this would be an ░░░░░░░░ of one of those ░░░░░░░░ Definitely keep on your ░░░░░░░░ list if the markets ░░░░░░░░ more volatile and you ░░░░░░░░ t have it consider ░░░░░░░░ a little bit and ░░░░░░░░ of the market is ░░░░░░░░ more volatile Glenn it ░░░░░░░░ sort of taking a ░░░░░░░░ of a bird s ░░░░░░░░ view of the entire ░░░░░░░░ Do you think that ░░░░░░░░ s a Trump put ░░░░░░░░ because it feels like ░░░░░░░░ the market was having ░░░░░░░░ bit of a rocky ░░░░░░░░ there um you know ░░░░░░░░ started to soften up ░░░░░░░░ say the things that ░░░░░░░░ soothing the markets the ░░░░░░░░ that the market wanted ░░░░░░░░ hear like oh we ░░░░░░░░ be flexible on some ░░░░░░░░ the tariffs Oh there ░░░░░░░░ be a reprieve for ░░░░░░░░ countries Oh you know ░░░░░░░░ could happen or this ░░░░░░░░ happen Is that a ░░░░░░░░ put at play I ░░░░░░░░ not going to try ░░░░░░░░ speculate what what Trump ░░░░░░░░ thinking or doing I ░░░░░░░░ no idea What I ░░░░░░░░ think is that we ░░░░░░░░ to do is buy ░░░░░░░░ stocks companies some of ░░░░░░░░ best companies not only ░░░░░░░░ the us but in ░░░░░░░░ world and over time ░░░░░░░░ of politics or what ░░░░░░░░ going on with inflation ░░░░░░░░ the whatever next thing ░░░░░░░░ come down the pike ░░░░░░░░ these stocks are still ░░░░░░░░ to make money at ░░░░░░░░ end of the day ░░░░░░░░ stocks are just companies ░░░░░░░░ we think there s ░░░░░░░░ companies out there that ░░░░░░░░ doing amazing things Um ░░░░░░░░ are priced a little ░░░░░░░░ expensive So use this ░░░░░░░░ your to your advantage ░░░░░░░░ Uh I have no ░░░░░░░░ what s going to ░░░░░░░░ months from now to ░░░░░░░░ to the penny What ░░░░░░░░ will be on or ░░░░░░░░ But I don t ░░░░░░░░ you need to know ░░░░░░░░ make money in the ░░░░░░░░ market what you need ░░░░░░░░ do is be patient ░░░░░░░░ your list take advantage ░░░░░░░░ any dips um It ░░░░░░░░ not you re not ░░░░░░░░ to make the money ░░░░░░░░ the stock market by ░░░░░░░░ to time uh what ░░░░░░░░ when it s going ░░░░░░░░ drop or what what ░░░░░░░░ is going to say ░░░░░░░░ or next week It ░░░░░░░░ more by being patient ░░░░░░░░ quality investments And over ░░░░░░░░ it s going to ░░░░░░░░ out Over time it ░░░░░░░░ going to work out ░░░░░░░░ do want also want ░░░░░░░░ get your sense Glenn ░░░░░░░░ what does this mean ░░░░░░░░ the financial sector which ░░░░░░░░ had a roaring roaring ░░░░░░░░ Uh as we look ░░░░░░░░ mean you like JP ░░░░░░░░ but I wonder what ░░░░░░░░ the call on the ░░░░░░░░ now Because again on ░░░░░░░░ rate side banks Oh ░░░░░░░░ really like banks We ░░░░░░░░ We do because we ░░░░░░░░ t think the rate ░░░░░░░░ Yeah but we think ░░░░░░░░ are still going to ░░░░░░░░ elevated Um we also ░░░░░░░░ there could be less ░░░░░░░░ coming in the next ░░░░░░░░ or two And that ░░░░░░░░ that could help earnings ░░░░░░░░ So banks haven t ░░░░░░░░ in the best environment ░░░░░░░░ the last few years ░░░░░░░░ we think it s ░░░░░░░░ to either maintain or ░░░░░░░░ mergers and acquisitions Positions ░░░░░░░░ been a bit slow ░░░░░░░░ s a ton of ░░░░░░░░ We believe in the ░░░░░░░░ sector Um in regardless ░░░░░░░░ what interest rates do ░░░░░░░░ or down there s ░░░░░░░░ But the banks have ░░░░░░░░ a great run How ░░░░░░░░ they struggled in a ░░░░░░░░ tightening cycle I mean ░░░░░░░░ started coming down only ░░░░░░░░ September of last year ░░░░░░░░ Morgan just had a ░░░░░░░░ earnings So um I ░░░░░░░░ I I I m ░░░░░░░░ going to bet against ░░░░░░░░ Dimon I m not ░░░░░░░░ to I m not ░░░░░░░░ to uh put an ░░░░░░░░ put on on a ░░░░░░░░ a JP Morgan I ░░░░░░░░ they have plenty of ░░░░░░░░ to run Um could ░░░░░░░░ it dip over the ░░░░░░░░ few months Sure But ░░░░░░░░ re not speculators We ░░░░░░░░ t want to speculate ░░░░░░░░ our clients money or ░░░░░░░░ money as an investor ░░░░░░░░ price earnings 12 So ░░░░░░░░ though it s had ░░░░░░░░ run up look at ░░░░░░░░ at look at what ░░░░░░░░ s priced at it ░░░░░░░░ justified that growth and ░░░░░░░░ s still done it ░░░░░░░░ an attractive valuation Um ░░░░░░░░ in general we still ░░░░░░░░ banks That being said ░░░░░░░░ re very picky Uh ░░░░░░░░ Morgan is by far ░░░░░░░░ one we own the ░░░░░░░░ of Um but the ░░░░░░░░ sector I think I ░░░░░░░░ is very attractive uh ░░░░░░░░ well as as energy ░░░░░░░░ staples But but financials ░░░░░░░░ right up there So ░░░░░░░░ have a minute to ░░░░░░░░ just to follow up ░░░░░░░░ you like just the ░░░░░░░░ banks Uh you know ░░░░░░░░ Morgan is there anything ░░░░░░░░ that you like Because ░░░░░░░░ Sachs has gone through ░░░░░░░░ roof I think it ░░░░░░░░ more than doubled That ░░░░░░░░ been the case with ░░░░░░░░ of the other banks ░░░░░░░░ of the regional banks ░░░░░░░░ also done well And ░░░░░░░░ do you think that ░░░░░░░░ is an area of ░░░░░░░░ for you The investment ░░░░░░░░ the Goldman Sachs were ░░░░░░░░ as big a fan ░░░░░░░░ because it doesn t ░░░░░░░░ the the uh deposit ░░░░░░░░ that a JP Morgan ░░░░░░░░ in terms of regionals ░░░░░░░░ think there s a ░░░░░░░░ opportunity We we re ░░░░░░░░ a state of Texas ░░░░░░░░ there s a ton ░░░░░░░░ regional banks We expect ░░░░░░░░ 2025 to be a ░░░░░░░░ of consolidation Um and ░░░░░░░░ as secretary treasurer in ░░░░░░░░ I believe it was ░░░░░░░░ week if not last ░░░░░░░░ he was talking about ░░░░░░░░ less regulation on the ░░░░░░░░ banks Right Some banks ░░░░░░░░ there are held pretty ░░░░░░░░ all to the similar ░░░░░░░░ which doesn t really ░░░░░░░░ sense to have a ░░░░░░░░ bank held at a ░░░░░░░░ standard as a regional ░░░░░░░░ I think regionals could ░░░░░░░░ could be ready for ░░░░░░░░ breakout That being said ░░░░░░░░ re not investing in ░░░░░░░░ right now Um but ░░░░░░░░ for sure could be ░░░░░░░░ area an opportunity Great ░░░░░░░░ Glenn has spoke from ░░░░░░░░ heart Thank you very ░░░░░░░░ for joining us and ░░░░░░░░ us your perspective on ░░░░░░░░ markets Really appreciate your ░░░░░░░░ and thoughts. Uh, we’ll