TRADING. I'M JOINED BY JASON
WARE CHIEF INVESTMENT OFFICER
ALBION FINANCIAL GROUP THE
SNP JASON CLOSE AT A RECORD
HIGH 12 OUT OF THE 21 TRADING
DAYS IN AUGUST MAJOR INDEXES
ARE PULLING BACK SLIGHTLY NOW
BUT WHAT IS PROPELLING THIS
FREAKING GROWTH IN MARKETS.
>> GOOD MORNING, GOOD TO BE
WITH YOU SO I THINK THE STORY
EARNINGS WE'VE HAD A REALLY
STRONG CUE TO
EARNING SEASON. THAT IS LARGELY
WRAPPED UP WITH THE MAJORITY OF
S AND P 500 COMPANY BEATING
CONSENSUS ESTIMATE WANT TO
SAY THAT CLOSE TO 90% OF
COMPANIES BEAT THE BOGEY WHICH
IS THE HIGHEST BE GREAT FOR ANY
EARNING SEASON
GOING BACK.
>> THEY GET ON THE AS FAR AS
STOCKS THAT
IS CONCERNED. MEANWHILE THE
EARNINGS GROWTH IN THAT QUARTER
AND SAID QUARTER WAS ABOUT 90
PERCENT YEAR OVER YEAR WHICH
WAS ALMOST 30%
HIGHER THAN ANALYSTS HAD
EXPECTED GOING INTO EARNINGS
WERE ESTIMATES WERE ABOUT 63%
YEAR-OVER-YEAR GROWTH AT THE
END OF JUNE SO WE HAD A REALLY
STRONG.
>> ORDER REVENUE GROWTH LOOK
GOOD EARNINGS GROWTH LOOK GOOD
MARGINS
LOOK GOOD AND THEN AS YOU
NOTED, OF COURSE WE'RE NOW
THROUGH
THE JACKSON.
>> THE SYMPOSIUM WHICH A LOT OF
INVESTORS ARE HOLDING THEIR
BREATHS REGARDING TAPER THE PAO
DELIVERED A DOVISH TAPER THAT'S
A WORD
TO SCHOOL WRITING IT LIKE
EARNINGS AND THEY LIKE
WITH OFFENSIVE.
>> IT'S NOW THERE'S 2 THINGS
THAT I THINK EVERYONE IS
KEEPING IN MIND AS THE MARKETS
OPEN TODAY AND THAT IS THE
DELTA VARIANT AND THE FALLOUT
IN AFGHANISTAN. SO HOW DO YOU
THINK IT'S GOING TO AFFECT THE
U.S. MARKET TODAY AND THE DAYS
COMING.
>> YEAH, IT'S AN IMPORTANT
QUESTION ON DELTA. THERE'S NO
DOUBT ABOUT IT THAT IS THE
MOST IMPORTANT HUMAN HAPPENING
IN THE WORLD
RIGHT NOW STILL PUBLIC HEALTH
CRISIS. WE'RE STILL IN A
PANDEMIC AND THAT
OF COURSE A LOT OF IMPLICATIONS
FOR FOLKS LIVES BUT AS FAR AS
THE MARKET IS CONCERNED IT'S
LARGELY SAILED THROUGH THE RISE
AND ELTON FACTIONS AND I THINK
THERE'S A COUPLE OF REASONS SO
THAT
YOU KNOW WE'VE SEEN THIS PLAY
OUT BEFORE THE PANDEMIC LAST
YEAR AND WHAT WE HAD WAS A
HISTORIC RESPONSE FOR BULK OF
THAT IN THE TREASURY. AND THAT
HAS
ABSOLUTELY ACTING AS A BACKSTOP
TO FINANCIAL MARKETS AND THERE
KHAN AMINA MEANWHILE WE'RE ON
THE OTHER SIDE
OF THIS IN TERMS OF
VACCINATIONS ARE RISING AND
PEOPLE GETTING BACK TO NORMAL.
SOME LEVEL WITH REGARD TO THE
ECONOMIC ACTIVITY. THE LABOR
MARKET IS HEALING JOBS AND
INCOME ARE UP AND AS I NOTED
EARNINGS ARE DOING VERY WELL SO
WHAT WE HOW DOES.
SITUATION WHERE DELTA IS GOING
TO AND WE ARE SEEING WE'RE
SEEING MORE RESTRICTIONS ARE
SEEING MASK MANDATES GOING BACK
WE'RE SEEING MEASURES TO TRY TO
PROTECT SOCIETY FROM THE RISE
OF THE
VIRUS BUT LONG LOCKDOWNS AND
SHUTDOWNS ARE UNLIKELY I THINK
THE MARKET UNDERSTANDS THIS
MEANWHILE WE HAVE AN ECONOMY
THAT IS GROWING RAPIDLY LIKELY
NORTH OF 6% THIS YEAR THAT IS
PROBABLY GOING TO GO FROM
RECOVERY TO EXPANSION INTO
2022. WITH A RECORD EARNINGS
NEXT YEAR AS WELL, IT SEEMS
LIKE MOST OF THE FACTORS THAT
ARE
DRIVING STOCKS. THE FISCAL
AUTHORITY, THE MONETARY
AUTHORITY EARNINGS AND THE
ECONOMY ARE ALL STILL GO AND
THEREFORE MARKET HIGHER
DESPITE DELTA.
>> SO FINANCIALS AND UTILITIES
AMONG THE LEADING SECTORS THIS
MONTH. DO THESE INDUSTRIES
STILL HAVE ROOM FOR GROWTH.
>> YOU KNOW I THINK SO IF YOU
HAVE A REALLY LONG-TERM VIEW AS
PART OF A DIVERSIFIED
EQUITY ALLOCATION OF MAKES
SENSE TO HAVE SOME OF THOSE
STOCKS IN THE PORTFOLIO YOU
KNOW
WE ARE I'M QUITE UNDERWEIGHT
UTILITIES. WE HAVE A DIVIDEND
EQUITY STRATEGY FOR CLIENTS,
WHAT WE DO ON SOME UTILITIES
BECAUSE OF COURSE THEY PAY A
HIGHER DIVIDEND YIELDS AND THE
S P 500 WRIT LARGE.
BUT IF YOU'RE LOOKING FOR
GROWTH UTILITIES AND CERTAINLY
NOT THE PLACE TO BE RATHER
SECULAR GROWTH TECHNOLOGY
HEALTHCARE AND WHITE SMOKE
CONSUMER GROWTH. CONSUMER
DISCRETIONARY, STOCKS WERE WE
PREFER TO ALLOCATE CLIENT
ASSETS WE'VE NOT
WE'VE BEEN OVERWEIGHT THOSE
SECTORS FOR MANY YEARS AND
CONTINUE TO LIKE THE
FUNDAMENTAL DRIVERS OF THOSE
SECTORS BOTH IN THE YEAR AT
AND AS IT LOOKS LIKE THE FED'S
GOING TO CONTINUE TO BE
QUITE ACCOMMODATIVE AND AS
INFLATION CONCERNS START TO WE
THINK THOSE SECTORS CAN LOOK
GOOD IN IRAN, BUT ALSO CAN.
>> GOOD PART OF THE PORTFOLIO
FOR CLIENTS OVER THE LONGER
TERM AS WELL.
>> NOW YESTERDAY'S SESSION, THE
NASDAQ HIT ITS 21ST RECORD HIGH
THIS YEAR. WHAT IS
YOUR OUTLOOK ON TECH AND WHAT
FACTORS COULD SIGNAL A PULLBACK
IN THE SECTOR.
>> YEAH CERTAINLY SO AS I KNOW
THAT I THINK TECH LOOKS PRETTY
GOOD. THERE ARE AREAS THAT YOU
WANT TO AWARD WITH IT
TECHNOLOGY. I THINK
ANYTHING THAT'S YOU KNOW
TRADING
SKY-HIGH VALUATIONS NO
EARNINGS, NO CASH FLOWS, BUT
YOU KNOW 20 TO 25 TIMES THE
REVENUE MULTIPLES ARE ARE
VULNERABLE PLACES WITHIN
TECHNOLOGY THAT ONE MAY WANT TO
AVOID AN OH WE ARE AVOIDING
THOSE SPOTS
FOR CLIENTS. BUT YOU KNOW LARGE
CAP TECHNOLOGY WITH WIDE
ECONOMIC MOATS YOU KNOW STRONG
EARNINGS PICTURES AND YOU KNOW
FAIRLY REASONABLE VALUATIONS
LIKE AN ALPHABET FOR
EXAMPLE THAT'S TRADING AROUND
24 TIMES NEXT YEAR'S EARNINGS
DESPITE BEING AT RECORD HIGHS
STILL GROWING AROUND 20% PER
YEAR. THOSE ARE THE KIND OF
AREAS THAT I THINK INVESTORS
CAN LOOK TO AND TECHNOLOGY.
NOW I OUR OUTLOOK FOR THOSE
TYPES OF COMPANIES WHETHER IT'S
AN AMAZON OR APPLE MICROSOFT TO
CENSURE ADOBE WE'RE WE'RE WE
REMAIN ON
THAT GROUP.
>> SO JOBLESS CLAIMS AND AUGUST
JOBS REPORT THAT'S COMING OUT
LATER IN THE WEEK. SO WHAT'S
YOUR OUTLOOK ON THE LABOR
MARKET.
>> LABOR MARKET CONTINUES TO
YOU KNOW WE HAD A MASS AMOUNT
OF
DUE TO COVID YOU KNOW
22 MILLION JOB LOSSES AND ONE
MONTH IN APRIL 20 APRIL
2022. WE'RE BEGINNING TO
ACTUALLY HAVE BEEN FOR MANY
MONTHS RECAPTURING A LOT OF
THOSE
JOB LOSSES. YOU KNOW AROUND
5.4% UNEMPLOYMENT AND THE
REALITY IS THAT WE HAVE A TON
OF OPEN JOBS OUT THERE IN THE
MARKET THE LOSS
JOLT REPORT SHOULD A RECORD
10 MILLION JOBS OPEN
AND AVAILABLE. THERE'S
CERTAINLY A SKILLS MISMATCH
WITHIN THE LABOR MARKET THAT IS
MAKING SOME OF THOSE
POSITIONS DIFFICULT FIELDER
NUMBER OF OTHER VARIABLES GOING
ON THE RISE OF
DELTA CHILDCARE ET CETERA, SO
IT'S NOT
GOING TO I'M FULLY HEAL
OVERNIGHT. IT'S BEEN A LONG
SLOG FOR THE LAST
16 MONTHS. WE EXPECT THAT THE
LABOR MARKET CONTINUES TO HEAL
ALONGSIDE THE ECONOMY AND THEN
WE WILL GET BACK TO SOMETHING
THAT LOOKS MORE LIKE FULL
EMPLOYMENT. PERHAPS IN THE
MIDDLE OF NEXT YEAR. SO
CONTINUE PATH OF HIM
IMPROVEMENT ONE THAT I T