RUSH TRANSCRIPT Maria welcome ░░░░░░░░ time for word on ░░░░░░░░ Street Top investors watching ░░░░░░░░ money Joining me Tom ░░░░░░░░ and advisers management principal ░░░░░░░░ Tom kicking things off ░░░░░░░░ you as we watch ░░░░░░░░ market that s rallying ░░░░░░░░ optimism to raise the ░░░░░░░░ dealing we are looking ░░░░░░░░ a big move in ░░░░░░░░ NASDAQ largely because of ░░░░░░░░ rallying once again and ░░░░░░░░ is ticking as supporters ░░░░░░░░ only a week to ░░░░░░░░ it through Congress before ░░░░░░░░ Yellen s new default ░░░░░░░░ of June 5th What ░░░░░░░░ your thoughts how important ░░░░░░░░ this for market stability ░░░░░░░░ it s very important ░░░░░░░░ Most financial advisers and ░░░░░░░░ are interviewing them and ░░░░░░░░ them all of the ░░░░░░░░ believe it s baked ░░░░░░░░ We feel like we ░░░░░░░░ going to hit the ░░░░░░░░ by June 5th and ░░░░░░░░ top of that a ░░░░░░░░ of weeks from now ░░░░░░░░ advisers also feel we ░░░░░░░░ see a final rate ░░░░░░░░ by the Fed and ░░░░░░░░ ll be it Historically ░░░░░░░░ best time to invest ░░░░░░░░ at the end of ░░░░░░░░ rate hikes and at ░░░░░░░░ beginning of the next ░░░░░░░░ So we seem to ░░░░░░░░ an opportunity there but ░░░░░░░░ other big point as ░░░░░░░░ re pointing out with ░░░░░░░░ NASDAQ we are seeing ░░░░░░░░ of this run up ░░░░░░░░ the market being just ░░░░░░░░ stocks Wait if you ░░░░░░░░ the 10 stocks fang ░░░░░░░░ out of S P ░░░░░░░░ it would be flat ░░░░░░░░ the year Dow would ░░░░░░░░ flat for the year ░░░░░░░░ really this encouraging news ░░░░░░░░ think is good for ░░░░░░░░ and that little enthusiasm ░░░░░░░░ what we need Maria ░░░░░░░░ but aeroalso looking at ░░░░░░░░ push we are also ░░░░░░░░ at some pushback from ░░░░░░░░ Republicans saying it doesn ░░░░░░░░ go far enough the ░░░░░░░░ spending is an issue ░░░░░░░░ markets are mixed down ░░░░░░░░ industrials down a fraction ░░░░░░░░ make a great point ░░░░░░░░ nvidia is one of ░░░░░░░░ stocks empowering the NASDAQ ░░░░░░░░ notching a trillion dollars ░░░░░░░░ market value for the ░░░░░░░░ time if the gains ░░░░░░░░ through the open The ░░░░░░░░ is up 3 and ░░░░░░░░ half percent right now ░░░░░░░░ unveiling new technology to ░░░░░░░░ up ai and the ░░░░░░░░ says ai is creating ░░░░░░░░ quote new computing era ░░░░░░░░ what s your take ░░░░░░░░ the tech stocks nvidia ░░░░░░░░ on 1 trillion dollar ░░░░░░░░ Yeah it s quite ░░░░░░░░ These companies have come ░░░░░░░░ long way The growth ░░░░░░░░ certainly going to be ░░░░░░░░ The multiples is just ░░░░░░░░ that we have a ░░░░░░░░ time getting around We ░░░░░░░░ not like to pay ░░░░░░░░ for these types of ░░░░░░░░ They ve performed very ░░░░░░░░ and in the last ░░░░░░░░ We told investors to ░░░░░░░░ of stick with Big ░░░░░░░░ We thought that would ░░░░░░░░ a good idea but ░░░░░░░░ these levels I don ░░░░░░░░ see much further buying ░░░░░░░░ here If anything it ░░░░░░░░ probably profit taking as ░░░░░░░░ get into some multiple ░░░░░░░░ in a market that ░░░░░░░░ think is going to ░░░░░░░░ very difficult coming up ░░░░░░░░ Maria where do you ░░░░░░░░ the multiple compression happening ░░░░░░░░ s face it ryan ░░░░░░░░ have the macro story ░░░░░░░░ s weakening Many argue ░░░░░░░░ the recession is upon ░░░░░░░░ and we will worsen ░░░░░░░░ the year goes on ░░░░░░░░ s your take there ░░░░░░░░ I agree with that ░░░░░░░░ I mean you have ░░░░░░░░ leading indicators have gone ░░░░░░░░ 13 straight months That ░░░░░░░░ a record since 2009 ░░░░░░░░ are sighing further cracks ░░░░░░░░ had Costco come out ░░░░░░░░ shoppers are trading down ░░░░░░░░ are coming out with ░░░░░░░░ goods Dollar tree and ░░░░░░░░ general are saying their ░░░░░░░░ are coming out with ░░░░░░░░ goods So we are ░░░░░░░░ starting to see consumers ░░░░░░░░ down to less expensive ░░░░░░░░ and that s just ░░░░░░░░ fresh crack in the ░░░░░░░░ and I think Chair ░░░░░░░░ and his board have ░░░░░░░░ very cohesive I believe ░░░░░░░░ s only one been ░░░░░░░░ vote in two years ░░░░░░░░ think they should raise ░░░░░░░░ m just not certain ░░░░░░░░ they will Maria yeah ░░░░░░░░ s the question Tom ░░░░░░░░ about you do you ░░░░░░░░ the Fed reserve to ░░░░░░░░ rates or take a ░░░░░░░░ We are surveying advisers ░░░░░░░░ of the time Maria ░░░░░░░░ are saying most believe ░░░░░░░░ will see the final ░░░░░░░░ basis point hike in ░░░░░░░░ weeks Maria yeah but ░░░░░░░░ mean go ahead On ░░░░░░░░ of that talking about ░░░░░░░░ yes if you look ░░░░░░░░ the S P around ░░░░░░░░ E but if you ░░░░░░░░ at broader markets outside ░░░░░░░░ the top stocks they ░░░░░░░░ fairly priced and most ░░░░░░░░ small and mid cap ░░░░░░░░ pe of 11 50 ░░░░░░░░ you can buy the ░░░░░░░░ P for There s ░░░░░░░░ value out there and ░░░░░░░░ are periods of time ░░░░░░░░ during slight recessions I ░░░░░░░░ been times even times ░░░░░░░░ interest rates markets do ░░░░░░░░ well Small caps small ░░░░░░░░ do outperform large caps ░░░░░░░░ that hasn t been ░░░░░░░░ case in the last ░░░░░░░░ year If you look ░░░░░░░░ overseas 10 11 in ░░░░░░░░ countries We have a ░░░░░░░░ country bryce we have ░░░░░░░░ start think about diversifying ░░░░░░░░ of the U S ░░░░░░░░ market ryan same question ░░░░░░░░ in this market right ░░░░░░░░ I d agree with ░░░░░░░░ point Mid cap stocks ░░░░░░░░ trading at 25 discount ░░░░░░░░ time since the year ░░░░░░░░ since that has happened ░░░░░░░░ would agree I think ░░░░░░░░ large cap names have ░░░░░░░░ played out I think ░░░░░░░░ have to find value ░░░░░░░░ smaller companies I like ░░░░░░░░ right now 5 treasury ░░░░░░░░ a great trade We ░░░░░░░░ finally starting to see ░░░░░░░░ for savers that s ░░░░░░░░ great thing and people ░░░░░░░░ be taking advantage of ░░░░░░░░ and probably reducing equity ░░░░░░░░ to lower end of ░░░░░░░░ not giving up on ░░░░░░░░ market but there s ░░░░░░░░ alternative Maria good to ░░░░░░░░ you both Thank you ░░░░░░░░ much gentlemen Ryan what ░░░░░░░░ your take on the ░░░░░░░░ stocks nvidia closing on ░░░░░░░░ trillion dollar club Yeah ░░░░░░░░ s quite remarkable These ░░░░░░░░ have come a long ░░░░░░░░ The growth is certainly ░░░░░░░░ to be there The ░░░░░░░░ is just something that ░░░░░░░░ have a hard time ░░░░░░░░ around We do not ░░░░░░░░ to pay up for ░░░░░░░░ types of companies They ░░░░░░░░ performed very well and ░░░░░░░░ the last year We ░░░░░░░░ investors to kind of ░░░░░░░░ with Big Tech We ░░░░░░░░ that would be a ░░░░░░░░ idea but at these ░░░░░░░░ I don t see ░░░░░░░░ further buying opportunity here ░░░░░░░░ anything it s probably ░░░░░░░░ taking as we get ░░░░░░░░ some multiple compression in ░░░░░░░░ market that I think ░░░░░░░░ going to be very ░░░░░░░░ coming up here Maria ░░░░░░░░ do you see the ░░░░░░░░ compression happening Let s ░░░░░░░░ it ryan we have ░░░░░░░░ macro story that s ░░░░░░░░ Many argue that the ░░░░░░░░ is upon us and ░░░░░░░░ will worsen as the ░░░░░░░░ goes on what s ░░░░░░░░ take there Yeah I ░░░░░░░░ with that sentiment I ░░░░░░░░ you have 13 leading ░░░░░░░░ have gone down 13 ░░░░░░░░ months That s a ░░░░░░░░ since 2009 We are ░░░░░░░░ further cracks We had ░░░░░░░░ come out think shoppers ░░░░░░░░ trading down They are ░░░░░░░░ out with less goods ░░░░░░░░ tree and dollar general ░░░░░░░░ saying their shoppers are ░░░░░░░░ out with more goods ░░░░░░░░ we are finally starting ░░░░░░░░ see consumers shift down ░░░░░░░░ less expensive goods and ░░░░░░░░ s just a fresh ░░░░░░░░ in the economy and ░░░░░░░░ think Chair Powell and ░░░░░░░░ board have been very ░░░░░░░░ I believe there s ░░░░░░░░ one been descending vote ░░░░░░░░ two years We think ░░░░░░░░ should raise I m ░░░░░░░░ not certain that they ░░░░░░░░ Maria yeah that s ░░░░░░░░ question Tom What about ░░░░░░░░ do you expect the ░░░░░░░░ reserve to raise rates ░░░░░░░░ take a pause We ░░░░░░░░ surveying advisers all of ░░░░░░░░ time Maria they are ░░░░░░░░ most believe we will ░░░░░░░░ the final 25 basis ░░░░░░░░ hike in two weeks ░░░░░░░░ yeah but I mean ░░░░░░░░ ahead On top of ░░░░░░░░ talking about valuations yes ░░░░░░░░ you look at the ░░░░░░░░ P around 21 E ░░░░░░░░ if you look at ░░░░░░░░ markets outside of the ░░░░░░░░ stocks they are fairly ░░░░░░░░ and most importantly small ░░░░░░░░ mid cap stocks pe ░░░░░░░░ 11 50 that you ░░░░░░░░ buy the S P ░░░░░░░░ There s great value ░░░░░░░░ there and there are ░░░░░░░░ of time that during ░░░░░░░░ recessions I have been ░░░░░░░░ even times with interest ░░░░░░░░ markets do quite well ░░░░░░░░ caps small caps do ░░░░░░░░ large caps but that ░░░░░░░░ t been the case ░░░░░░░░ the last 10 year ░░░░░░░░ you look at overseas ░░░░░░░░ 11 in some countries ░░░░░░░░ have a home country ░░░░░░░░ we have to start ░░░░░░░░ about diversifying outside of ░░░░░░░░ U S Market market ░░░░░░░░ same question value in ░░░░░░░░ market right here I ░░░░░░░░ agree with that point ░░░░░░░░ cap stocks are trading ░░░░░░░░ 25 discount first time ░░░░░░░░ the year 2000 since ░░░░░░░░ has happened I would ░░░░░░░░ I think the large ░░░░░░░░ names have been played ░░░░░░░░ I think you have ░░░░░░░░ find value in smaller ░░░░░░░░ I like cash right ░░░░░░░░ 5 treasury is a ░░░░░░░░ trade We are finally ░░░░░░░░ to see yield for ░░░░░░░░ that s a great ░░░░░░░░ and people should be ░░░░░░░░ advantage of that and ░░░░░░░░ reducing equity exposure to ░░░░░░░░ end of rangings not ░░░░░░░░ up on stock market ░░░░░░░░ there s an alternative ░░░░░░░░ good to see you ░░░░░░░░ Thank you so much ░░░░░░░░