RUSH TRANSCRIPT All right ░░░░░░░░ coast to coast gets ░░░░░░░░ right now Let s ░░░░░░░░ with the stocks starting ░░░░░░░░ the week in the ░░░░░░░░ Investors are optimistic as ░░░░░░░░ banks expected to kick ░░░░░░░░ the earnings this week ░░░░░░░░ some impressive profits In ░░░░░░░░ S P 500 earnings ░░░░░░░░ see as much as ░░░░░░░░ 65 boost from a ░░░░░░░░ ago Of course when ░░░░░░░░ comparing to last year ░░░░░░░░ the pandemic lows It ░░░░░░░░ be a little distorted ░░░░░░░░ perhaps what we really ░░░░░░░░ to know is the ░░░░░░░░ Let s get into ░░░░░░░░ Joining me annandale capital ░░░░░░░░ George say macro advisors ░░░░░░░░ partner Mitch Roschelle Thanks ░░░░░░░░ both being here on ░░░░░░░░ Monday George let me ░░░░░░░░ with you We are ░░░░░░░░ some nice earnings reports ░░░░░░░░ the big banks kicking ░░░░░░░░ off Of course the ░░░░░░░░ are a little skewed ░░░░░░░░ about isn t it ░░░░░░░░ investors will really focus ░░░░░░░░ Yeah Good morning ashley ░░░░░░░░ think everybody will looking ░░░░░░░░ it at this point ░░░░░░░░ basically I don t ░░░░░░░░ people can get a ░░░░░░░░ precedence for how far ░░░░░░░░ have come in just ░░░░░░░░ short period of time ░░░░░░░░ back a little over ░░░░░░░░ year We doubled on ░░░░░░░░ S P 500 We ░░░░░░░░ an incredible amount of ░░░░░░░░ since just last spring ░░░░░░░░ think investors will look ░░░░░░░░ how much can you ░░░░░░░░ me going forward That ░░░░░░░░ going to tell tell ░░░░░░░░ tale in terms of ░░░░░░░░ far we re going ░░░░░░░░ go from here Ashley ░░░░░░░░ you know what if ░░░░░░░░ get the nice earnings ░░░░░░░░ could that refuel investor ░░░░░░░░ how the economic recovery ░░░░░░░░ doing Yeah And I ░░░░░░░░ with George I do ░░░░░░░░ that everything is going ░░░░░░░░ be in the guidance ░░░░░░░░ think the biggest challenge ░░░░░░░░ a year ago was ░░░░░░░░ fact that companies weren ░░░░░░░░ providing any guidance The ░░░░░░░░ that a company a ░░░░░░░░ cfo were throwing hands ░░░░░░░░ in the air saying ░░░░░░░░ can t comment on ░░░░░░░░ future because we don ░░░░░░░░ know what it looks ░░░░░░░░ That is it what ░░░░░░░░ drove down stocks price ░░░░░░░░ year ago but beyond ░░░░░░░░ guidance I think the ░░░░░░░░ are going to be ░░░░░░░░ for specificity We are ░░░░░░░░ potentially an inflationary cycle ░░░░░░░░ are entering a period ░░░░░░░░ tight labor And I ░░░░░░░░ investors are going to ░░░░░░░░ to hear in that ░░░░░░░░ dance how companies are ░░░░░░░░ with the labor shortages ░░░░░░░░ companies are dealing with ░░░░░░░░ supply chain disruptions How ░░░░░░░░ dealing with the cost ░░░░░░░░ materials going up That ░░░░░░░░ probably going to be ░░░░░░░░ important thing on those ░░░░░░░░ calls Ashley well you ░░░░░░░░ let me follow up ░░░░░░░░ you Mitch Then you ░░░░░░░░ higher prices inflation We ░░░░░░░░ some inflation reads CPI ░░░░░░░░ Tuesday We have fed ░░░░░░░░ Jerome Powell testifying to ░░░░░░░░ I believe that is ░░░░░░░░ and Wednesday But they ░░░░░░░░ going to be lots ░░░░░░░░ investors to mull over ░░░░░░░░ is your take on ░░░░░░░░ Will it be sticking ░░░░░░░░ longer than the Fed ░░░░░░░░ to indicate I fear ░░░░░░░░ in the control room ░░░░░░░░ pull a tape of ░░░░░░░░ saying something different than ░░░░░░░░ am now I was ░░░░░░░░ buying the transitory argument ░░░░░░░░ I m starting to ░░░░░░░░ signs that inflation is ░░░░░░░░ but the reason why ░░░░░░░░ is ebbing is because ░░░░░░░░ think the consumers whether ░░░░░░░░ be businesses who are ░░░░░░░░ or individuals who are ░░░░░░░░ are seeing higher prices ░░░░░░░░ they re pushing back ░░░░░░░░ do think that the ░░░░░░░░ market disruption is the ░░░░░░░░ issue The fact that ░░░░░░░░ labor costs are baked ░░░░░░░░ and driving inflation I ░░░░░░░░ it here with you ░░░░░░░░ I think higher labor ░░░░░░░░ may be the root ░░░░░░░░ of inflation Ashley so ░░░░░░░░ do you say George ░░░░░░░░ wage inflation These businesses ░░░░░░░░ to pay more and ░░░░░░░░ and offer all sorts ░░░░░░░░ perks to get people ░░░░░░░░ actually work is that ░░░░░░░░ big factor behind the ░░░░░░░░ right now There are ░░░░░░░░ sorts of crosscurrents going ░░░░░░░░ right now ashley I ░░░░░░░░ say we don t ░░░░░░░░ where inflation will go ░░░░░░░░ this point It is ░░░░░░░░ early to tell The ░░░░░░░░ year treasury is completely ░░░░░░░░ of inflation right now ░░░░░░░░ 1 5 which is ░░░░░░░░ which is great for ░░░░░░░░ There is no competition ░░░░░░░░ stocks You can t ░░░░░░░░ competition for stocks with ░░░░░░░░ income investments earning less ░░░░░░░░ 2 The stocks are ░░░░░░░░ only game in town ░░░░░░░░ re very expensive If ░░░░░░░░ only place to play ░░░░░░░░ returns that is why ░░░░░░░░ market done so well ░░░░░░░░ year with glowing economy ░░░░░░░░ keeps going up Ashley ░░░░░░░░ tina isn t it ░░░░░░░░ is no alternative Very ░░░░░░░░ Mitch That s right ░░░░░░░░ one sector you particularly ░░░░░░░░ in this investment in ░░░░░░░░ environment You know the ░░░░░░░░ this week So I ░░░░░░░░ going to go with ░░░░░░░░ is close I will ░░░░░░░░ the banking sector The ░░░░░░░░ banks Retail banks I ░░░░░░░░ they will do low ░░░░░░░░ the stable rate environment ░░░░░░░░ all right We have ░░░░░░░░ Gentlemen thank you very ░░░░░░░░