RUSH TRANSCRIPT Down about ░░░░░░░░ quarters of a percent ░░░░░░░░ with Maria is live ░░░░░░░░ now All right Time ░░░░░░░░ the word on Wall ░░░░░░░░ Top investors watching your ░░░░░░░░ this morning Mjp wealth ░░░░░░░░ president Brian Vendig ray ░░░░░░░░ and fitz gerald group ░░░░░░░░ Keith Fitz Gerald It ░░░░░░░░ great to see you ░░░░░░░░ morning Goldman Sachs warning ░░░░░░░░ the housing market still ░░░░░░░░ quote further to fall ░░░░░░░░ growth will completely stall ░░░░░░░░ 2023 this after the ░░░░░░░░ shiller home price index ░░░░░░░░ in weaker than expected ░░░░░░░░ June but was still ░░░░░░░░ than he it was ░░░░░░░░ yearing a Your take ░░░░░░░░ the housing market I ░░░░░░░░ saying the labor market ░░░░░░░░ the next shoe to ░░░░░░░░ but we have to ░░░░░░░░ our eye on housing ░░░░░░░░ as well I think ░░░░░░░░ one thing we saw ░░░░░░░░ in the data that ░░░░░░░░ a month over month ░░░░░░░░ we saw a decline ░░░░░░░░ about 0 77 in ░░░░░░░░ prices and that s ░░░░░░░░ first decline that we ░░░░░░░░ seen in three years ░░░░░░░░ the largest since July ░░░░░░░░ 2011 I think when ░░░░░░░░ think about the environment ░░░░░░░░ the Federal Reserve increasing ░░░░░░░░ rates it s definitely ░░░░░░░░ demand and cooling demand ░░░░░░░░ home as you said ░░░░░░░░ have gone up significantly ░░░░░░░░ over year The other ░░░░░░░░ also is that commodity ░░░░░░░░ have also declined and ░░░░░░░░ re expecting builders to ░░░░░░░░ add inventory over the ░░░░░░░░ 12 months So I ░░░░░░░░ from a residential housing ░░░░░░░░ prices probably will be ░░░░░░░░ down as we move ░░░░░░░░ next year However other ░░░░░░░░ of the real estate ░░░░░░░░ such as last mile ░░░░░░░░ real estate life and ░░░░░░░░ science buildings and apartments ░░░░░░░░ to have a little ░░░░░░░░ more steady demand especially ░░░░░░░░ he we as we ░░░░░░░░ prices to go up ░░░░░░░░ the balance of the ░░░░░░░░ keeping headline inflation sticky ░░░░░░░░ 2022 Jackie I think ░░░░░░░░ are excellent points when ░░░░░░░░ comes to housing The ░░░░░░░░ are slower to come ░░░░░░░░ than expected If we ░░░░░░░░ change in market dynamics ░░░░░░░░ could drop more With ░░░░░░░░ rising there s incentive ░░░░░░░░ people to try to ░░░░░░░░ if they can I ░░░░░░░░ to move to keith ░░░░░░░░ shares tumbling this morning ░░░░░░░░ announced plans to lay ░░░░░░░░ 20 of the workforce ░░░░░░░░ senior executives heading to ░░░░░░░░ Stock s down 79 ░░░░░░░░ to date This is ░░░░░░░░ another company in the ░░░░░░░░ industry saying we re ░░░░░░░░ to have to lay ░░░░░░░░ off This is a ░░░░░░░░ concern for the market ░░░░░░░░ well Well it is ░░░░░░░░ you know respectfully I ░░░░░░░░ push back just a ░░░░░░░░ bit All tech is ░░░░░░░░ the same There s ░░░░░░░░ huge difference between tech ░░░░░░░░ apple and Microsoft and ░░░░░░░░ like snap for example ░░░░░░░░ I think is a ░░░░░░░░ company It s flailing ░░░░░░░░ s in desperate straits ░░░░░░░░ of its executives got ░░░░░░░░ It s laying off ░░░░░░░░ that would look at ░░░░░░░░ new apps and revenue ░░░░░░░░ the company It s ░░░░░░░░ the best players off ░░░░░░░░ table in an attempt ░░░░░░░░ survive That to me ░░░░░░░░ not a stock you ░░░░░░░░ to buy On the ░░░░░░░░ hand as the par ░░░░░░░░ continue to deteriorate for ░░░░░░░░ stocks like Microsoft and ░░░░░░░░ are ones you want ░░░░░░░░ go to because they ░░░░░░░░ going to survive and ░░░░░░░░ re going to continue ░░░░░░░░ invest through this Jackie ░░░░░░░░ all tech is created ░░░░░░░░ You re 100 right ░░░░░░░░ that With respect to ░░░░░░░░ which is one of ░░░░░░░░ blue chip pes compani ░░░░░░░░ has been cautious I ░░░░░░░░ apple was one of ░░░░░░░░ companies who said it ░░░░░░░░ not be as aggressive ░░░░░░░░ firing as it would ░░░░░░░░ They re not necessarily ░░░░░░░░ people off You re ░░░░░░░░ a trend a theme ░░░░░░░░ slowdown in the tech ░░░░░░░░ which worries me It ░░░░░░░░ also worrying investors That ░░░░░░░░ the place they go ░░░░░░░░ they want to hit ░░░░░░░░ sell button Where do ░░░░░░░░ want to invest in ░░░░░░░░ mack he crow environment ░░░░░░░░ the conditions and everything ░░░░░░░░ have to watch One ░░░░░░░░ the important things is ░░░░░░░░ the think about which ░░░░░░░░ is doing well We ░░░░░░░░ cloud and cyber security ░░░░░░░░ companies with great cash ░░░░░░░░ Sales force is a ░░░░░░░░ company There s a ░░░░░░░░ of growth in crm ░░░░░░░░ overtook sap Adobe is ░░░░░░░░ great company They have ░░░░░░░░ in on the creative ░░░░░░░░ and marketing and consumer ░░░░░░░░ software Thinking about what ░░░░░░░░ going on with adobe ░░░░░░░░ general they ve got ░░░░░░░░ broad reach on the ░░░░░░░░ as well as the ░░░░░░░░ and Microsoft looks really ░░░░░░░░ right now because they ░░░░░░░░ got the cloud and ░░░░░░░░ gaming and they ve ░░░░░░░░ a lock on office ░░░░░░░░ and toes are stocks ░░░░░░░░ are going to be ░░░░░░░░ for quite some time ░░░░░░░░ if you re set ░░░░░░░░ hold for the long ░░░░░░░░ ray the stock that ░░░░░░░░ mentioned seem to be ░░░░░░░░ good bet and a ░░░░░░░░ of investors are trying ░░░░░░░░ not think about the ░░░░░░░░ to day volatility for ░░░░░░░░ long term strategy together ░░░░░░░░ to be one of ░░░░░░░░ only things you can ░░░░░░░░ in this environment Brian ░░░░░░░░ keith great to see ░░░░░░░░ all this morning Thank ░░░░░░░░ All right Much more ░░░░░░░░ this morning Coming up ░░░░░░░░ Biden pinning the blame ░░░░░░░░ Republicans for the country ░░░░░░░░ surge in violent crime ░░░░░░░░ after his campaign promise ░░░░░░░░ uniting the done Country ░░░░░░░░ on that next A ░░░░░░░░ filing from the Justice ░░░░░░░░ on the Mar a ░░░░░░░░ raid one day before ░░░░░░░░ federal