RUSH TRANSCRIPT We re ░░░░░░░░ circling around four for ░░░░░░░░ two year five year ░░░░░░░░ at 4 08 and ░░░░░░░░ 10 year is going ░░░░░░░░ 4 35 Chris Brigati ░░░░░░░░ cio of swbc joins ░░░░░░░░ with his take on ░░░░░░░░ Chris lovely to have ░░░░░░░░ on the show Thank ░░░░░░░░ very much for your ░░░░░░░░ What do you expect ░░░░░░░░ now Of the policy ░░░░░░░░ We re back with ░░░░░░░░ Chris brigatti cio of ░░░░░░░░ Chris what do you ░░░░░░░░ of the whole fiscal ░░░░░░░░ approach and this shrinking ░░░░░░░░ the deficit Um plan ░░░░░░░░ the Trump Administration has ░░░░░░░░ know it s an ░░░░░░░░ plan I think it ░░░░░░░░ constructive Anytime it can ░░░░░░░░ deficits is a good ░░░░░░░░ Uh the challenge is ░░░░░░░░ how to how do ░░░░░░░░ enact it and how ░░░░░░░░ pain might have to ░░░░░░░░ enacted in order to ░░░░░░░░ the goal And we ░░░░░░░░ seeing some of that ░░░░░░░░ hearing some of that ░░░░░░░░ the Trump Administration has ░░░░░░░░ pretty forthright in suggesting ░░░░░░░░ they re willing to ░░░░░░░░ some pain with regard ░░░░░░░░ all of their efforts ░░░░░░░░ including shrinking the deficit ░░░░░░░░ so as we move ░░░░░░░░ this process I expect ░░░░░░░░ to ultimately to put ░░░░░░░░ us economy on better ░░░░░░░░ in a very long ░░░░░░░░ basis You think it ░░░░░░░░ aggressive but they ll ░░░░░░░░ there I think so ░░░░░░░░ mean I think they ░░░░░░░░ they ll get most ░░░░░░░░ the way there I ░░░░░░░░ t want to say ░░░░░░░░ ll get all the ░░░░░░░░ there but I think ░░░░░░░░ they have the opportunity ░░░░░░░░ do a lot of ░░░░░░░░ and really kind of ░░░░░░░░ the ball forward With ░░░░░░░░ to slashing the budget ░░░░░░░░ and dropping the total ░░░░░░░░ debt by a significant ░░░░░░░░ I mean where we ░░░░░░░░ with regard to us ░░░░░░░░ debt as a percentage ░░░░░░░░ is UN UN unacceptable ░░░░░░░░ if it keeps going ░░░░░░░░ the pace that it ░░░░░░░░ been going at it ░░░░░░░░ be a long terme ░░░░░░░░ damaging for the us ░░░░░░░░ so anything that can ░░░░░░░░ done to move it ░░░░░░░░ is a benefit So ░░░░░░░░ do expect them to ░░░░░░░░ significant progress towards the ░░░░░░░░ Um I hate to ░░░░░░░░ a number on it ░░░░░░░░ s say 80 of ░░░░░░░░ way There would be ░░░░░░░░ very reasonable expectation in ░░░░░░░░ opinion Got it Uh ░░░░░░░░ I do want to ░░░░░░░░ your thoughts in in ░░░░░░░░ of your investment strategies ░░░░░░░░ like nestl I m ░░░░░░░░ that that broke up ░░░░░░░░ you repeat that I ░░░░░░░░ just going through your ░░░░░░░░ ideas and I wanted ░░░░░░░░ get your investment strategies ░░░░░░░░ this point I believe ░░░░░░░░ like antenna ent You ░░░░░░░░ pnc financial services and ░░░░░░░░ yes Yes uh all ░░░░░░░░ them Um entergy is ░░░░░░░░ very interesting play First ░░░░░░░░ all I think um ░░░░░░░░ space in the us ░░░░░░░░ energy in particular does ░░░░░░░░ very good opportunity for ░░░░░░░░ Um because of the ░░░░░░░░ boom And part of ░░░░░░░░ reason is the AI ░░░░░░░░ energy consumption is a ░░░░░░░░ of 10 x of ░░░░░░░░ it requires to do ░░░░░░░░ Google search for a ░░░░░░░░ gpt search for argument ░░░░░░░░ sake and so the ░░░░░░░░ of energy being consumed ░░░░░░░░ the AI community is ░░░░░░░░ really growing So if ░░░░░░░░ can locate energy producers ░░░░░░░░ and distribute in the ░░░░░░░░ that are required requiring ░░░░░░░░ energy uh to be ░░░░░░░░ to facilitate their needs ░░░░░░░░ have an opportunity to ░░░░░░░░ And I think energy ░░░░░░░░ positioned themselves well in ░░░░░░░░ space Are headquartered in ░░░░░░░░ area Uh they ve ░░░░░░░░ had a contract with ░░░░░░░░ to help facilitate some ░░░░░░░░ to the Meta platform ░░░░░░░░ uh and Meta new ░░░░░░░░ um locations And they ░░░░░░░░ service Texas which is ░░░░░░░░ growing area as well ░░░░░░░░ when we talk about ░░░░░░░░ pnc financial again I ░░░░░░░░ looking at something that ░░░░░░░░ benefit from some of ░░░░░░░░ new regime with Trump ░░░░░░░░ pnc is uh a ░░░░░░░░ uh but they have ░░░░░░░░ expanded down into the ░░░░░░░░ area in the sunbelt ░░░░░░░░ the growing population base ░░░░░░░░ there s an opportunity ░░░░░░░░ pnc to expand into ░░░░░░░░ areas which is obviously ░░░░░░░░ a benefit But also ░░░░░░░░ the heels of some ░░░░░░░░ the Trump Administration initiative ░░░░░░░░ regard to an easier ░░░░░░░░ environment and the current ░░░░░░░░ yield curve that we ░░░░░░░░ seen of late in ░░░░░░░░ us coming off of ░░░░░░░░ interest rate policy from ░░░░░░░░ Fed offers financial specifically ░░░░░░░░ opportunity to perform well ░░░░░░░░ I do expect financials ░░░░░░░░ general to do well ░░░░░░░░ and within that framework ░░░░░░░░ does offer some good ░░░░░░░░ given some of their ░░░░░░░░ And and how they ░░░░░░░░ approaching the business And ░░░░░░░░ finally we get to ░░░░░░░░ Nestle is interesting Uh ░░░░░░░░ it is a very ░░░░░░░░ known very large multinational ░░░░░░░░ in the consumer staple ░░░░░░░░ So consumer staples should ░░░░░░░░ well in downturn in ░░░░░░░░ They are very highly ░░░░░░░░ in the us Um ░░░░░░░░ I expect them to ░░░░░░░░ any tariff storms very ░░░░░░░░ because nestle has a ░░░░░░░░ interesting manufacturing um philosophy ░░░░░░░░ they do a lot ░░░░░░░░ onshoring and local for ░░░░░░░░ distribution So a lot ░░░░░░░░ what is being attempted ░░░░░░░░ be accomplished by Trump ░░░░░░░░ urging manufacturers to come ░░░░░░░░ the us is already ░░░░░░░░ place by nestle and ░░░░░░░░ Uh is already been ░░░░░░░░ a good spot thus ░░░░░░░░ this year And I ░░░░░░░░ expect that to continue ░░░░░░░░ forward as relatively bullish ░░░░░░░░ Europe coming into the ░░░░░░░░ I think I got ░░░░░░░░ little bit lucky with ░░░░░░░░ uh early on because ░░░░░░░░ what Trump had done ░░░░░░░░ I do expect nestl ░░░░░░░░ continue that trend giving ░░░░░░░░ opportunity for growth in ░░░░░░░░ European economy as well ░░░░░░░░ indeed Given that it ░░░░░░░░ coming on the back ░░░░░░░░ peak pessimism in the ░░░░░░░░ region So yeah that ░░░░░░░░ worked out quite well ░░░░░░░░ you I don t ░░░░░░░░ to also get your ░░░░░░░░ in on the us ░░░░░░░░ outlook in terms of ░░░░░░░░ absolute targets is there ░░░░░░░░ upside because there s ░░░░░░░░ that talk about recessionary ░░░░░░░░ risk uh looming over ░░░░░░░░ us economy on the ░░░░░░░░ the back of these ░░░░░░░░ stagflation environment and to ░░░░░░░░ bring it back to ░░░░░░░░ point I know I ░░░░░░░░ wrapping a few things ░░░░░░░░ this one question but ░░░░░░░░ bring it back to ░░░░░░░░ point about how if ░░░░░░░░ are able to narrow ░░░░░░░░ budget uh meet their ░░░░░░░░ deficit targets then what ░░░░░░░░ that mean for stimulus ░░░░░░░░ the economy Sure Well ░░░░░░░░ think ultimately that part ░░░░░░░░ be stimulative in the ░░░░░░░░ run Um bringing it ░░░░░░░░ to the early part ░░░░░░░░ the question however um ░░░░░░░░ know I do expect ░░░░░░░░ to be a downturn ░░░░░░░░ the us economy I ░░░░░░░░ we re already seeing ░░░░░░░░ of the signs of ░░░░░░░░ moving forward That will ░░░░░░░░ a challenge Um and ░░░░░░░░ do expect the markets ░░░░░░░░ react accordingly And the ░░░░░░░░ know in that vein ░░░░░░░░ see some some challenges ░░░░░░░░ the us stock market ░░░░░░░░ the S P I ░░░░░░░░ see some lower targets ░░░░░░░░ hit um possibly as ░░░░░░░░ as 5400 to 5200 ░░░░░░░░ think those would be ░░░░░░░░ opportunities specifically Uh should ░░░░░░░░ get there Um but ░░░░░░░░ the long run I ░░░░░░░░ expect opportunity for the ░░░░░░░░ to kind of bounce ░░░░░░░░ of this and come ░░░░░░░░ ahead in the long ░░░░░░░░ But I do anticipate ░░░░░░░░ near terms and short ░░░░░░░░ pain Um and I ░░░░░░░░ that s pretty much ░░░░░░░░ a foregone conclusion in ░░░░░░░░ opinion Uh when we ░░░░░░░░ looking at the interest ░░░░░░░░ scenario I do expect ░░░░░░░░ rates to kind of ░░░░░░░░ in a higher interest ░░░░░░░░ environment Um given some ░░░░░░░░ the challenges for the ░░░░░░░░ um with regard to ░░░░░░░░ Fed s policy and ░░░░░░░░ they re proceeding um ░░░░░░░░ on the books for ░░░░░░░░ interest rate cuts for ░░░░░░░░ rest of this year ░░░░░░░░ I take the under ░░░░░░░░ that I m only ░░░░░░░░ one at most and ░░░░░░░░ None An outside chance ░░░░░░░░ None but possibly None ░░░░░░░░ of the challenges in ░░░░░░░░ inflation environment that could ░░░░░░░░ uh come forth with ░░░░░░░░ to some of the ░░░░░░░░ coming out of the ░░░░░░░░ Administration and that should ░░░░░░░░ on the economy But ░░░░░░░░ I think the economy ░░░░░░░░ going to rebound in ░░░░░░░░ long run So dips ░░░░░░░░ buying opportunities across the ░░░░░░░░ Got it We ve ░░░░░░░░ a rush What s ░░░░░░░░ top safety trade Top ░░░░░░░░ trade Fixed income go ░░░░░░░░ income If you re ░░░░░░░░ us buyer uh go ░░░░░░░░ safety In terms of ░░░░░░░░ bonds there s a ░░░░░░░░ good opportunity in the ░░░░░░░░ bond space Exactly Right ░░░░░░░░ given some cyclical nature ░░░░░░░░ the market Um but ░░░░░░░░ you re looking for ░░░░░░░░ income that s one ░░░░░░░░ play Um but saying ░░░░░░░░ on the yield curve ░░░░░░░░ well buying in the ░░░░░░░░ to 5 year range ░░░░░░░░ treasuries and whatnot can ░░░░░░░░ investors good opportunity Got ░░░░░░░░ Chris Lovely having you ░░░░░░░░ the show Thank you ░░░░░░░░ much for your thoughts ░░░░░░░░ your insights. Take