RUSH TRANSCRIPT Joining us ░░░░░░░░ It s good to ░░░░░░░░ you again Likewise So ░░░░░░░░ re like 42 minutes ░░░░░░░░ Not a single person ░░░░░░░░ the show today said ░░░░░░░░ re worried about anything ░░░░░░░░ consensus was stocks are ░░░░░░░░ higher between now and ░░░░░░░░ end of the year ░░░░░░░░ that a justified feeling ░░░░░░░░ by all means the ░░░░░░░░ market is overvalued whether ░░░░░░░░ s on 25 earnings ░░░░░░░░ earnings or even 27 ░░░░░░░░ But however Or however ░░░░░░░░ we re still fully ░░░░░░░░ And I think investors ░░░░░░░░ to recognize that we ░░░░░░░░ up 115 in five ░░░░░░░░ Maybe their asset allocations ░░░░░░░░ tilted too much to ░░░░░░░░ So here s a ░░░░░░░░ where you might trim ░░░░░░░░ and move it into ░░░░░░░░ income Or you might ░░░░░░░░ highly valued stocks that ░░░░░░░░ appreciated Donate it to ░░░░░░░░ donor advised fund There ░░░░░░░░ things you could do ░░░░░░░░ to reduce your exposure ░░░░░░░░ mean I had some ░░░░░░░░ think it was Jeffrey ░░░░░░░░ said hey 25 in ░░░░░░░░ Gold s going up ░░░░░░░░ I know that may ░░░░░░░░ a large number that ░░░░░░░░ like you but the ░░░░░░░░ being that you should ░░░░░░░░ loading up in areas ░░░░░░░░ than equities perhaps because ░░░░░░░░ reasons that you said ░░░░░░░░ are rich by historical ░░░░░░░░ How do you assess ░░░░░░░░ We re loading up ░░░░░░░░ high grade long term ░░░░░░░░ bonds We ve been ░░░░░░░░ that still Yeah But ░░░░░░░░ the stock market there ░░░░░░░░ great thesis you can ░░░░░░░░ and still have an ░░░░░░░░ stock portfolio So it ░░░░░░░░ t as if you ░░░░░░░░ got to exit stocks ░░░░░░░░ the board First look ░░░░░░░░ the asset allocation and ░░░░░░░░ find the sectors you ░░░░░░░░ to be in But ░░░░░░░░ say you should rotate ░░░░░░░░ of small and mid ░░░░░░░░ stocks when some people ░░░░░░░░ just saying to themselves ░░░░░░░░ now is the time ░░░░░░░░ finally lean in You ░░░░░░░░ get out right Why ░░░░░░░░ there s been a ░░░░░░░░ change in the market ░░░░░░░░ structure First of all ░░░░░░░░ are waiting a lot ░░░░░░░░ as private companies before ░░░░░░░░ go public And when ░░░░░░░░ go public they re ░░░░░░░░ right over smid and ░░░░░░░░ into large cap Secondly ░░░░░░░░ smids are funded through ░░░░░░░░ rate debt And so ░░░░░░░░ argument now is well ░░░░░░░░ the Fed cuts rates ░░░░░░░░ going to go down ░░░░░░░░ the capital will go ░░░░░░░░ I don t want ░░░░░░░░ buy a companies based ░░░░░░░░ cost of capital And ░░░░░░░░ with the advent of ░░░░░░░░ most investor money might ░░░░░░░░ into space And 40 ░░░░░░░░ that is large cap ░░░░░░░░ So that s where ░░░░░░░░ want to be So ░░░░░░░░ still see the large ░░░░░░░░ tech trade as outperforming ░░░░░░░░ rest of the market ░░░░░░░░ the remainder of this ░░░░░░░░ For decades and here ░░░░░░░░ why You mean for ░░░░░░░░ to come Yeah we ░░░░░░░░ gone from the pc ░░░░░░░░ the internet cellular mobility ░░░░░░░░ And now we re ░░░░░░░░ AI These are evolutionary ░░░░░░░░ and most investors are ░░░░░░░░ these sectors and are ░░░░░░░░ taking advantage of this ░░░░░░░░ of growth Sure the ░░░░░░░░ are very expensive and ░░░░░░░░ ll pull back but ░░░░░░░░ s a great time ░░░░░░░░ add for the long ░░░░░░░░ And so you don ░░░░░░░░ when people talk about ░░░░░░░░ bubble in this area ░░░░░░░░ don t pay any ░░░░░░░░ to that Well naturally ░░░░░░░░ was going on with ░░░░░░░░ and the circular nature ░░░░░░░░ the oracle AI deal ░░░░░░░░ first glance could look ░░░░░░░░ the start of a ░░░░░░░░ But if you re ░░░░░░░░ nvidia and you ve ░░░░░░░░ 400 billion of operating ░░░░░░░░ flow in the next ░░░░░░░░ years and you re ░░░░░░░░ to reinvest in the ░░░░░░░░ you know best which ░░░░░░░░ your feed your little ░░░░░░░░ around the country and ░░░░░░░░ your business outside of ░░░░░░░░ in The equity market ░░░░░░░░ s your favorite area ░░░░░░░░ power producers vistra and ░░░░░░░░ still Yeah But I ░░░░░░░░ that s the AI ░░░░░░░░ It is A lot ░░░░░░░░ our investments are circular ░░░░░░░░ the core AI story ░░░░░░░░ also own banks So ░░░░░░░░ think the banks in ░░░░░░░░ recovering economy are going ░░░░░░░░ do very well And ░░░░░░░░ at what s you ░░░░░░░░ JP Morgan Bank of ░░░░░░░░ wells fargo You don ░░░░░░░░ think there s a ░░░░░░░░ in any of the ░░░░░░░░ plays Like these are ░░░░░░░░ new growth stocks You ░░░░░░░░ what I m saying ░░░░░░░░ like people are treating ░░░░░░░░ like the hyperscalers or ░░░░░░░░ Tech growth names that ░░░░░░░░ would invest in before ░░░░░░░░ old utilities which used ░░░░░░░░ be a safety play ░░░░░░░░ proxy on on yields ░░░░░░░░ we re literally treating ░░░░░░░░ like they are the ░░░░░░░░ growth stocks Let s ░░░░░░░░ between the regulated and ░░░░░░░░ independent power producers The ░░░░░░░░ ips that I own ░░░░░░░░ and nrg have operating ░░░░░░░░ flows of nine and ░░░░░░░░ now they re reinvesting ░░░░░░░░ in their business and ░░░░░░░░ re expanding their capacity ░░░░░░░░ also they re managing ░░░░░░░░ balance sheet Vistra has ░░░░░░░░ 30 of their float ░░░░░░░░ I bought it originally ░░░░░░░░ 2021 It s up ░░░░░░░░ times since I bought ░░░░░░░░ Still adding to it ░░░░░░░░ don t you think ░░░░░░░░ some point the whole ░░░░░░░░ of power generation is ░░░░░░░░ to become more efficient ░░░░░░░░ you re not going ░░░░░░░░ need the the amount ░░░░░░░░ you think you do ░░░░░░░░ And then that s ░░░░░░░░ to be the comeuppance ░░░░░░░░ these stocks Definitely That ░░░░░░░░ the tail risk event ░░░░░░░░ efficient usage of electricity ░░░░░░░░ then we have the ░░░░░░░░ of the world whether ░░░░░░░░ s cars homes appliances ░░░░░░░░ power demand is only ░░░░░░░░ So again I ve ░░░░░░░░ stocks for five 10 ░░░░░░░░ 20 years These are ░░░░░░░░ names that I think ░░░░░░░░ s a secular opportunity ░░░░░░░░ on increasing demand for