RUSH TRANSCRIPT 3 a ░░░░░░░░ for the summer Maria ░░░░░░░░ to you Maria Thank ░░░░░░░░ Adam it was a ░░░░░░░░ week for stocks investors ░░░░░░░░ to worries over trade ░░░░░░░░ the Federal Reserve rising ░░░░░░░░ prices and of course ░░░░░░░░ news as well How ░░░░░░░░ you plan to navigate ░░░░░░░░ week ahead The founder ░░░░░░░░ chief investment officer of ░░░░░░░░ bon ton group is ░░░░░░░░ me joining me right ░░░░░░░░ David great to see ░░░░░░░░ Great to be with ░░░░░░░░ Maria Thank you for ░░░░░░░░ us so they basically ░░░░░░░░ we are going to ░░░░░░░░ another interest rate hike ░░░░░░░░ June in the June ░░░░░░░░ and then of course ░░░░░░░░ the worries about trade ░░░░░░░░ are you positioned right ░░░░░░░░ Well we have been ░░░░░░░░ defensive in kind of ░░░░░░░░ moderate balance positioning most ░░░░░░░░ the year so we ░░░░░░░░ probably early getting defensive ░░░░░░░░ then right now you ░░░░░░░░ say okay well it ░░░░░░░░ a good place to ░░░░░░░░ but the problem is ░░░░░░░░ are not really diversifying ░░░░░░░░ equities very well I ░░░░░░░░ that people have to ░░░░░░░░ that if the market ░░░░░░░░ vulnerable because of rising ░░░░░░░░ then you re bonds ░░░░░░░░ stocks are heavily correlated ░░░░░░░░ so it s affected ░░░░░░░░ way you want to ░░░░░░░░ about asset allocation overall ░░░░░░░░ about the market on ░░░░░░░░ stock side we re ░░░░░░░░ heavy in energy which ░░░░░░░░ helped us quite a ░░░░░░░░ Maria That s great ░░░░░░░░ heavy in more defensive ░░░░░░░░ stocks which has helped ░░░░░░░░ for with names like ░░░░░░░░ staples and telecom Those ░░░░░░░░ lagged Maria Energy the ░░░░░░░░ of oil all the ░░░░░░░░ up to what 72 ░░░░░░░░ on wti That s ░░░░░░░░ and yet a lot ░░░░░░░░ the energy stocks had ░░░░░░░░ kind of held back ░░░░░░░░ and Exxon just started ░░░░░░░░ rally more this last ░░░░░░░░ but we think there ░░░░░░░░ a huge disconnect to ░░░░░░░░ the whole energy sector ░░░░░░░░ just commodity price sensitive ░░░░░░░░ Maria We have the ░░░░░░░░ number out a week ░░░░░░░░ today a week from ░░░░░░░░ weekend The economy has ░░░░░░░░ doing better Almost full ░░░░░░░░ You have the Federal ░░░░░░░░ earlier this week say ░░░░░░░░ we are signaling that ░░░░░░░░ will see another interest ░░░░░░░░ increase in June Good ░░░░░░░░ Well it s kind ░░░░░░░░ inevitable we watch the ░░░░░░░░ futures market quite a ░░░░░░░░ The June one has ░░░░░░░░ pretty well priced in ░░░░░░░░ what s interesting now ░░░░░░░░ December now the Fed ░░░░░░░░ market point about 50 ░░░░░░░░ of that happening it ░░░░░░░░ be much lower so ░░░░░░░░ fourth rate hike on ░░░░░░░░ year is the one ░░░░░░░░ could be more material ░░░░░░░░ m suspect if they ░░░░░░░░ really do it but ░░░░░░░░ s so far in ░░░░░░░░ anything can happen but ░░░░░░░░ thing I d really ░░░░░░░░ viewers is when we ░░░░░░░░ about the economic data ░░░░░░░░ are so centered on ░░░░░░░░ consumer and center of ░░░░░░░░ appointment number but I ░░░░░░░░ think that it s ░░░░░░░░ capex it s what ░░░░░░░░ happening in business investment ░░░░░░░░ matters If the business ░░░░░░░░ reform works as well ░░░░░░░░ I believe it s ░░░░░░░░ to and early indications ░░░░░░░░ you re going to ░░░░░░░░ it in business investment ░░░░░░░░ takes a little while ░░░░░░░░ unemployment number comes every ░░░░░░░░ it s a big ░░░░░░░░ issue but really it ░░░░░░░░ not moving stocks It ░░░░░░░░ t for a long ░░░░░░░░ I think if you ░░░░░░░░ seeing industrial production capital ░░░░░░░░ orders these are the ░░░░░░░░ that we re so ░░░░░░░░ to the entire Obama ░░░░░░░░ years right now if ░░░░░░░░ see that s will ░░░░░░░░ the next leg Maria ░░░░░░░░ it doesn t matter ░░░░░░░░ you if we see ░░░░░░░░ consumer that s iffy ░░░░░░░░ week Lowe s fell ░░░░░░░░ others as well Tiffany ░░░░░░░░ really well Yeah and ░░░░░░░░ course that s the ░░░░░░░░ about the consumer space ░░░░░░░░ that you have Maria ░░░░░░░░ And then with Lowe ░░░░░░░░ you have CEO changes ░░░░░░░░ That s true The ░░░░░░░░ end of the market ░░░░░░░░ different than low end ░░░░░░░░ I think the consumer ░░░░░░░░ the retailer are two ░░░░░░░░ things and people often ░░░░░░░░ them together Maria David ░░░░░░░░ to see you Thank ░░░░░░░░ so much the author ░░░░░░░░ crisis of responsibility Don ░░░░░░░░ go anywhere Cisco chairman ░░░░░░░░ CEO Chuck Robbins is ░░░░░░░░ on Wall Street You ░░░░░░░░ your brand new car ░░░░░░░░ s hurt but there ░░░░░░░░ still be pain It ░░░░░░░░ when your insurance company ░░░░░░░░ they ll only pay ░░░░░░░░ quarters of what it ░░░░░░░░ to replace it What ░░░░░░░░ you supposed to do ░░░░░░░░ three quarters of a ░░░░░░░░