RUSH TRANSCRIPT It came ░░░░░░░░ today strategy fashion flight ░░░░░░░░ safety in full strain ░░░░░░░░ Wall Street and main ░░░░░░░░ Trump s tax Just ░░░░░░░░ to emphasize that if ░░░░░░░░ and p five hundred ░░░░░░░░ at current levels the ░░░░░░░░ think people officially be ░░░░░░░░ a bear market This ░░░░░░░░ the second fastest plunge ░░░░░░░░ the last 14 bear ░░░░░░░░ Since 19 forty five ░░░░░░░░ a huge of the ░░░░░░░░ sell off in stocks ░░░░░░░░ I also want to ░░░░░░░░ we re seeing treasury ░░░░░░░░ moving to the outside ░░░░░░░░ a bit of a ░░░░░░░░ off and treasuries as ░░░░░░░░ So we can talk ░░░░░░░░ what that tells us ░░░░░░░░ have a bond market ░░░░░░░░ a macro economic backdrop ░░░░░░░░ that that s now ░░░░░░░░ crisper gotta he is ░░░░░░░░ w b c c ░░░░░░░░ and least of on ░░░░░░░░ find out That s ░░░░░░░░ institute for global fixed ░░░░░░░░ strategist least I got ░░░░░░░░ start with you What ░░░░░░░░ we seeing and bonds ░░░░░░░░ out What is this ░░░░░░░░ us Yeah bonds are ░░░░░░░░ much as a flight ░░░░░░░░ safety perceive safe having ░░░░░░░░ these volatility in the ░░░░░░░░ markets is causing fixed ░░░░░░░░ markets to perform Well ░░░░░░░░ investors move money away ░░░░░░░░ equities and into high ░░░░░░░░ 16 Of wire yields ░░░░░░░░ this morning My is ░░░░░░░░ tenure at eight basis ░░░░░░░░ right now Yeah elsa ░░░░░░░░ you re just a ░░░░░░░░ of us kind of ░░░░░░░░ technicals right investors moving ░░░░░░░░ in and out I ░░░░░░░░ t take this immediate ░░░░░░░░ there s still plenty ░░░░░░░░ trading in during the ░░░░░░░░ and I think the ░░░░░░░░ remains the same right ░░░░░░░░ uncertainty around bros in ░░░░░░░░ your own inflation concerned ░░░░░░░░ what the Fed is ░░░░░░░░ to be doing is ░░░░░░░░ investors to reshuffle money ░░░░░░░░ so Concern over all ░░░░░░░░ have come down from ░░░░░░░░ peaks and we got ░░░░░░░░ in in January and ░░░░░░░░ started to sit down ░░░░░░░░ is mostly obviously of ░░░░░░░░ of investors going to ░░░░░░░░ calibrating those expectations Chris ░░░░░░░░ s the rule of ░░░░░░░░ in the he s ░░░░░░░░ asset allocation in turmoil ░░░░░░░░ this not to panic ░░░░░░░░ got to be really ░░░░░░░░ for a really thoughtful ░░░░░░░░ what You re trying ░░░░░░░░ accomplish and keep the ░░░░░░░░ term perspective in in ░░░░░░░░ and you should never ░░░░░░░░ over reactive positively or ░░░░░░░░ and just stay the ░░░░░░░░ so to speak and ░░░░░░░░ thoughtful about how you ░░░░░░░░ proceed going forward And ░░░░░░░░ when we talk about ░░░░░░░░ course I mean your ░░░░░░░░ of your portfolio that ░░░░░░░░ should be making sure ░░░░░░░░ you ve got safe ░░░░░░░░ exposure while either maintaining ░░░░░░░░ Terrible risk I I ░░░░░░░░ t know because that ░░░░░░░░ that s what so ░░░░░░░░ investors right now when ░░░░░░░░ re waking up this ░░░░░░░░ or having the brunch ░░░░░░░░ with matty over the ░░░░░░░░ they re trying to ░░░░░░░░ out what is that ░░░░░░░░ balance For me at ░░░░░░░░ point where many people ░░░░░░░░ clearly rebalancing you know ░░░░░░░░ s really tough for ░░░░░░░░ individual to really define ░░░░░░░░ they need to be ░░░░░░░░ the overall thought process ░░░░░░░░ some of the of ░░░░░░░░ I ve had lately ░░░░░░░░ been along the lines ░░░░░░░░ should people be less ░░░░░░░░ in the equity market ░░░░░░░░ they had that they ░░░░░░░░ have gotten over expose ░░░░░░░░ they were so happy ░░░░░░░░ the returns You know ░░░░░░░░ five plus percent returns ░░░░░░░░ years and we re ░░░░░░░░ draw people in and ░░░░░░░░ I think that s ░░░░░░░░ part of the reasons ░░░░░░░░ we re seeing some ░░░░░░░░ the backtracking we are ░░░░░░░░ were over expose a ░░░░░░░░ balanced portfolio helps and ░░░░░░░░ re seeing them with ░░░░░░░░ s happening The in ░░░░░░░░ work in the past ░░░░░░░░ days as well not ░░░░░░░░ s yeah let s ░░░░░░░░ back to your beliefs ░░░░░░░░ the bond market here ░░░░░░░░ one of the things ░░░░░░░░ m wondering about is ░░░░░░░░ a degree to which ░░░░░░░░ front end of the ░░░░░░░░ curve is yelling at ░░░░░░░░ central banks for help ░░░░░░░░ now versus the longer ░░░░░░░░ In a little bit ░░░░░░░░ focused on the deficit ░░░░░░░░ you talk to me ░░░░░░░░ how the movement across ░░░░░░░░ curve a little bit ░░░░░░░░ that too 10 and ░░░░░░░░ we have seen globally ░░░░░░░░ that message us signaling ░░░░░░░░ the risks and policy ░░░░░░░░ now Yeah of course ░░░░░░░░ very short end of ░░░░░░░░ curbs actually flashing to ░░░░░░░░ said that they need ░░░░░░░░ help We heard from ░░░░░░░░ fell on Friday unfortunately ░░░░░░░░ the bar to cut ░░░░░░░░ rates further is is ░░░░░░░░ high right He wants ░░░░░░░░ see some of that ░░░░░░░░ data translating from the ░░░░░░░░ eda hard data suffering ░░░░░░░░ he wants to see ░░░░░░░░ on the unemployment rate ░░░░░░░░ on the inflation front ░░░░░░░░ know that some Investors ░░░░░░░░ probably kind of yelling ░░░░░░░░ for the Fed to ░░░░░░░░ more to act more ░░░░░░░░ but we don t ░░░░░░░░ the Fed is going ░░░░░░░░ do that You re ░░░░░░░░ to go ahead and ░░░░░░░░ you re going to ░░░░░░░░ a more pause measure ░░░░░░░░ see how the situation ░░░░░░░░ to unfold before acting ░░░░░░░░ the long into the ░░░░░░░░ right That s pretty ░░░░░░░░ real rates coming down ░░░░░░░░ whole girl s story ░░░░░░░░ because a lot of ░░░░░░░░ strategy is coming into ░░░░░░░░ year a very good ░░░░░░░░ and expectation but now ░░░░░░░░ have to recalibrate that ░░░░░░░░ they re making some ░░░░░░░░ in first quarter Second ░░░░░░░░ GDP some other strategies ░░░░░░░░ all the way to ░░░░░░░░ recession we re not ░░░░░░░░ that camp Yet we ░░░░░░░░ you know that the ░░░░░░░░ has a good chance ░░░░░░░░ recover in the second ░░░░░░░░ but that s if ░░░░░░░░ gonna create some volatility ░░░░░░░░ again too steep and ░░░░░░░░ that you seem to ░░░░░░░░ between the and to ░░░░░░░░ see as the short ░░░░░░░░ of the curve continues ░░░░░░░░ fall more aggressively Trying ░░░░░░░░ push defending into some ░░░░░░░░ of reaction in the ░░░░░░░░ meetings can t push ░░░░░░░░ Fed into a reaction ░░░░░░░░ you now The market ░░░░░░░░ currently pricing and five ░░░░░░░░ cuts in an increased ░░░░░░░░ of a nit need ░░░░░░░░ rate cut as well ░░░░░░░░ you can The bond ░░░░░░░░ really get that done ░░░░░░░░ doubt it to be ░░░░░░░░ I doubt it I ░░░░░░░░ see of said there ░░░░░░░░ going to be more ░░░░░░░░ Is the offense is ░░░░░░░░ to wait and see ░░░░░░░░ actual this policies translate ░░░░░░░░ sort of like economic ░░░░░░░░ that something is happening ░░░░░░░░ just because equity market ░░░░░░░░ off We saw a ░░░░░░░░ strong chair panel on ░░░░░░░░ kind of pushing back ░░░░░░░░ that idea that the ░░░░░░░░ is the Fed isn ░░░░░░░░ going to come to ░░░░░░░░ them Market by anytime ░░░░░░░░ they re going to ░░░░░░░░ and see until something ░░░░░░░░ translates into the economy ░░░░░░░░ acting So I highly ░░░░░░░░ it that s going ░░░░░░░░ go ahead an act ░░░░░░░░ aggressive as fed funds ░░░░░░░░ usually price in Chris ░░░░░░░░ we kind of put ░░░░░░░░ in this you know ░░░░░░░░ is the best way ░░░░░░░░ anticipate how the Fed ░░░░░░░░ was anticipated at one ░░░░░░░░ two Only have two ░░░░░░░░ in the back half ░░░░░░░░ this year that is ░░░░░░░░ anticipated to have five ░░░░░░░░ cuts this year What ░░░░░░░░ the best way to ░░░░░░░░ your portfolio anticipate what ░░░░░░░░ Fed my do in ░░░░░░░░ to data a data ░░░░░░░░ fed that they have ░░░░░░░░ to pound the pavement ░░░░░░░░ that they are going ░░░░░░░░ be How can they ░░░░░░░░ sure that that Investors ░░░░░░░░ sure that they re ░░░░░░░░ fighting the Fed the ░░░░░░░░ anticipating how the Fed ░░░░░░░░ move towards that five ░░░░░░░░ Reality check powers been ░░░░░░░░ on his front foot ░░░░░░░░ regard to telling people ░░░░░░░░ path of the Fed ░░░░░░░░ you got to really ░░░░░░░░ to what he s ░░░░░░░░ and how is approaching ░░░░░░░░ markets and what he ░░░░░░░░ on Friday was a ░░░░░░░░ passive approach in there ░░░░░░░░ to see what will ░░░░░░░░ next and not going ░░░░░░░░ overreact to A market ░░░░░░░░ and sentiments from President ░░░░░░░░ either So you have ░░░░░░░░ really kind of pay ░░░░░░░░ close attention to his ░░░░░░░░ and I think then ░░░░░░░░ ll get a better ░░░░░░░░ And ultimately if you ░░░░░░░░ at the the the ░░░░░░░░ of the markets with ░░░░░░░░ to fed rate cuts ░░░░░░░░ the feds the own ░░░░░░░░ to predict it s ░░░░░░░░ pretty poor it does ░░░░░░░░ reflect very well over ░░░░░░░░ longer period of Time ░░░░░░░░ if you re looking ░░░░░░░░ six months out rate ░░░░░░░░ environment the market is ░░░░░░░░ very wrong in that ░░░░░░░░ and we see that ░░░░░░░░ the past we we ░░░░░░░░ that rate cuts work ░░░░░░░░ as high as seven ░░░░░░░░ At one point back ░░░░░░░░ two to three years ░░░░░░░░ None of them happened ░░░░░░░░ Chris What s your ░░░░░░░░ best idea for investors ░░░░░░░░ now I m looking ░░░░░░░░ something to do in ░░░░░░░░ moment I think to ░░░░░░░░ to more towards things ░░░░░░░░ are little bit able ░░░░░░░░ weather the storm in ░░░░░░░░ could be consumer staples ░░░░░░░░ really like the energy ░░░░░░░░ particularly utility markets long ░░░░░░░░ they they do well ░░░░░░░░ a recessionary or a ░░░░░░░░ in the economy and ░░░░░░░░ expect them to fair ░░░░░░░░ well so this could ░░░░░░░░ a buying opportunity for ░░░░░░░░ types of the environment ░░░░░░░░ those types of stocks ░░░░░░░░ in this environment sobering ░░░░░░░░ of moment ago Chris ░░░░░░░░ s the Fed s ░░░░░░░░ is not the stock ░░░░░░░░ That is not part ░░░░░░░░ their domain Indeed Chris ░░░░░░░░ Louis thanks so much ░░░░░░░░ taking the time of ░░░░░░░░ appreciate it Coming up ░░░░░░░░ one gym- and I