EARLY MORNING, TRADING.
I'M JOINED BY ERIC DIDN'T WHO
IS THE PRESIDENT AND MANAGING
DIRECTOR. THE ALLIANCE, ERIC
GOOD TO HAVE YOU HERE WITH US
THIS
MORNING, THANKS TAKE THE TIME
THE S P 500 UP 10 OF THE PAST
INFLATION BEING, THE MAIN
CONCERN AMONG ANALYSTS OUT
THERE SO WHAT OTHER HEADWINDS
ARE YOU SEE IMPACTING THE
MARKET OR IS THAT LARGELY
WRAPPED UP IN INFLATION.
ONE TIME.
>> WELL, I MEAN IS
AN ISSUE. THE QUESTION IS A
TRANSITORY OR IS IT GOING TO BE
AROUND FOR SOME
WE'VE BEEN IS TRANSITORY AND
YOU SENT OVER WHAT HAPPENED
WITH THE PANDEMIC
DEMAND
EMPLOYEES WERE LAID FACTORIES
WERE SHUTTERED AND IN A FAIRLY
SHORT PERIOD
OF TIME WE HAVE RECORD DEMAND
HIGHER THEN PREPANDEMIC AND
COMPANIES JUST CAN'T WORK THAT
WAY WE CAN TURN ROUND
THAT QUICK SO THIS IS LESS
SUPPLY THERE'S HUGE DEMAND THAT
MEANS INFLATION. I LOVE
THAT TOO THE ONLY PLACE IN THAT
WE REMEMBER THEM WERE
SCARED OFF. BACK IN THE 70'S
HUGE DIFFERENCE WE HAD IN
OIL EMBARGO AND WE HAD NO
CONTROL OVER MAJOR IN PUTTING
OUR ECONOMY AND NOW WE WERE IN
ENERGY EXPORTER.
SO WE DON'T HAVE THAT KIND OF
VULNERABILITIES SO ON I THINK
THIS IS A IS A PHASE. I THINK
WE'LL
SEE INFLATION. BUT WE'RE GOING
TO BE OK AND BY THE 2 THIRDS OF
COMPANIES ARE SEEING HIGHER
PROFIT MARGIN. SO DESPITE THEIR
INPUT COSTS RISING, THEY'RE
PASSING OUT
A WARNING AND THEY'RE ACTUALLY
INCREASING MARGINS ARE ABLE TO
INCREASE IN PRICING FASTER THAN
THE INPUT.
AND SO THAT'S ONE ISSUE OF
COURSE FRED COVID IS NOT GO OUT
RIGHT.
WE'VE SIGNS THAT IT'S
A BEATING. BUT COULD THERE BE
ANOTHER MAYOR IN SURE IT'S
POSSIBLE. WE'RE COMING INTO
COLDER WEATHER WE'RE RIGHT ON
THE UNITED WANT TO SEE WHAT
THAT MEANS AS WELL.
>> THIS WEEK, WE'RE ALSO
EXPECTING EARNINGS FROM HOME
DEPOT WAL-MART TARGET OTHERS
FROM THE RETAIL SECTOR AND
THEY'RE GOING TO GIVE US A
LITTLE BIT OF WHAT THEY'RE
SEEING IN TERMS OF THEIR
ENGAGEMENT WITH CONSUMERS.
BUT THEY ALSO ARE NAVIGATING
SUPPLY-CHAIN ISSUES AND
OF COURSE PATIENTS WELL A TOP
OF MIND. THERE'S EXPECT
CONSUMER SPENDING TO REMAIN
RESILIENT THROUGHOUT THE
HOLIDAY SHOPPING SEASON.
AND WHAT YOU EXPECT
THESE COMPANIES TO SIGNAL IN
TERMS OF SOME OF THE FORECAST
AND HOW THEY'RE ENGAGING WITH
THE CONSUMER.
>> YEAH, I MEAN THE CONSUMER IS
IN THE STRONGER SHAPE THAT
WE'VE SEEN IN.
>> YEARS BECAUSE THE CONSUMER
CAN SPEND MONEY DURING THIS
PANDEMIC.
WE ALL STAY HOME AND WATCH TV
AND WHENEVER WE DID IN THE
MEANTIME WE'VE GOT GOVERNMENT
HELP TO DO. WE PAY
DOWN DEBT THE CONSUMER IS IN
GREAT SHAPE. THE CONSUMER IS
G D WE'RE SEEING
THE MALLS GETTING MORE TRAFFIC
RETAILERS ARE SHOWING THE
NUMBERS I MEAN WE'RE
>> THE NASDAQ HAS JUMPED OVER
7% IN
THE PAST WE'LL REACH OUT TO GET
YOUR TAKE ON THE BROADER TECH
SECTOR AND PERHAPS EVEN AREAS
THAT YOU'RE WATCHING FOR FUTURE
GROWTH.
>> SO LOOK AROUND YOU AND I
KNOW YOU ALWAYS HAVE TO
OWN IT CAN THE TACTICS DRIVING
THIS ECONOMY BIG TECH'S BEEN
DRIVING THE
MARKETS FOR THE LAST DECADE,
HOWEVER, I DON'T WANT TO OWN
BIG CATS LIKE THE S AND P
OWNS IT. I DON'T WANT TO 5, 6,
STOCKS TO BE ROUGHLY 25%.
I HOLDINGS AND UNFORTUNATELY,
MANY INVESTORS MANY
AMERICANS ARE WAY OVER WAITED 2
GAMES HAD ACTUALLY WON ONLY FOR
THE BOTTOM LINE IS
I THINK WE'RE GOING TO SEE
INTEREST RATE INCREASES IN THE
FUTURE AND AS WE KNOW THAT
HURTS THE VALUE OF THE LONG
TERM
IN THOSE TYPES OF COMPANIES
THAT REDUCES THE VALUE SO YOU
WANT
TO KNOW YOU KNOW IN OVERWEIGHT,
I'M LIKE MANY AMERICANS
ARE DOING.
>> WE ALSO KNOW IN A SEPARATE
SECTOR ENERGY PULL BACK BY
ALMOST 2% LAST WEEK OVER THE
TOP PERFORMING SECTORS
STILL UP 51% HERE TODAY AND
PERHAPS THAT SOME OF THE
BROADER CONTEXT KEEP IN MIND
I'D LOVE TO GET YOUR TAKE ON
ENERGY AND ESPECIALLY HOW SOME
OF THE GREEN INITIATIVES THAT
WE'VE BEEN HEARING COME OUT OF
COP 26.
AND EVEN ON
THE INFRASTRUCTURE AND WHERE
THAT SPENDING IS GOING TO LINE
UP OF THESE
COMING MONTHS YEARS AND PERHAPS
EVEN DECADES, YOU KNOW HOW
THOSE INITIATIVES IMPACT THE
FUTURE OF THE SECTOR.
>> YEAH GREAT PART ABOUT ENERGY
BRIGHT IT IS
AND ON BOTH SIDES YOU CAN HAVE
EXPOSURE TO FOSSIL
YOU YOU EXPOSURE TO NATURAL GAS
AND OIL AND YOU CAN STILL HAVE
EXPOSURE TO GREEN ENERGY.
GREEN ENERGY IS A LONG-TERM
INITIATIVE THAT THE
WHOLE DO IS ADAPTING BUT AS
WE'RE SEEING IS GOING TO BE
MANY MANY YEARS, WE'RE JUST
TO REALLY.
>> HAPPEN AND
BE MEANINGFUL. IN THE MEANTIME
THE GLOBAL ECONOMY IS GROWING.
>> WE'RE SEEING SHORTAGES
IN ENERGY.
>> WHEN THE WIND STOPS BLOWING
>> I WAS DEAD WHEN THE SUN
ISN'T SHINING SOLAR POWER IS
DEAD. WE NEED
A CONTINUOUS SUPPLY OF
ENERGY SOURCE AND THIS FOSSIL
FUELS SHOW. WE LIKE ALSO
FOREIGN FROM
ORIENTED INVESTORS. I LIKE
THESE SECTORS
WE'RE CRUSHED. LAST YEAR SO
EVEN THOUGH WE'VE SEEN PROFOUND
MOVES THIS YEAR. THEY'RE
CHEAP THERE'S A LOT OF VALUES.
>> AND WHILE WE HAVE YOU AS
WELL WHICH INDUSTRIES SHOULD
INVESTORS PERHAPS BE AVOIDING
AT THIS TIME.
>> OH WELL I THINK THAT IN
THEIR AREAS REAL FOR OFF THE
MISS WE SEE SOME FROST COME OUT
I
COOLED OFF THE NEW STOCK
STRUCTURE ON THE BUT DEFINITELY
I MEAN LOOK
AT RIVIAN. THIS A COMPANY THAT
THAT'S THAT'S I WOULD WELL A
RIDICULOUS VALUATION RIGHT NOW
FOR COMING. I MEAN THAT'S IT'S
ABOUT TO START SOME PRODUCTS SO
I THINK WE EVEN THE MARKET.
>> WELL, I THINK
>> INDUSTRIES HERE TO STAY ON A
C GRADE GROWTH I THINK THERE'S
ALSO A LOT OF FRAUD IN THE SAME
THING. SOME OF
THE VALUATIONS ARE GETTING A
LITTLE RIDICULOUS I'M SO I STAY
>> I THINK
WHAT I.
>> WANT TO FOCUS ON RIGHT NOW
JUST ONE LOVE, I'M A LITTLE
SMALL CAP.
THE EARNINGS WERE SEEN FROM
THIS 3RD QUARTER SMALL CAMP
ARE ALL. 450 SOME
ODD PERCENT IN THEIR TRADING
AROUND 17 TIMES EARNINGS, THE S
AND P
EARNINGS ARE UP 40 SOME ODD
PERCENT RATING IT 21 TIMES
FOR WATER. THERE'S REAL
SMALL-CAP WE'RE EXCITED ABOUT.
>> OK SO HOW MUCH TIME
DO YOU
YOU KIND OF EXPECT UNTIL YOU
KNOW SINCE WE'VE BEEN
CONTINUING TO HIT UP ON SOME OF
THESE NEW ALL-TIME HIGHS AND
YOU KNOW NOW AT THIS POINT TO
LOSING TRACK OF THE MONEY.
A NEW ALL-TIME HIGHS WE STRUCK
A DRIVER JUST OVER THE COURSE
OF THIS YEAR. YOU KNOW HOW HOW
MUCH TIME DO YOU BELIEVE UNTIL.
INVESTORS START TO TAKE SOME OF
THE CHIPS OFF THE TABLE.
>> WELL I
THINK THE OTHER BIG FACTOR YOUR
BREAD IS THE INTEREST RATES AND
AT THE END OF
THE DAY. WE'RE STILL SITTING
AROUND ONE AND A HALF PERCENT
ON THE 10 YEAR.
IF I'M RUNNING A PENSION FUND
WHEN I HAVE TO SUPPLY RETIREES
THE BENEFITS FOR MANY YEARS TO
COME.
I CAN TAKE 40% OF MY PORTFOLIO
AND ONE AND A HALF PERCENT THE
DOESN'T WORK. IF I'M A RETIREE
I WANT TO STOP WORKING I CAN'T
PUT ALL MY MONEY 10 YOU'RE
USING 10 YEAR TREASURIES AND
THEN GET YOU KNOW IN THE ONES
OR EVEN. THE
MASK DOESN'T THERE'S A WHOLE
BUNCH OF GREAT ACTOR HE'S OUT
THERE YIELDING 3% AND EVEN 4%
WITH GROWTH I MEAN COME ON
THAT'S WHAT I AS AN INVESTOR.
UNTIL THAT CHANGES. YOU'RE
GOING TO SEE A LOT OF MONEY IS
STILL FLOWING THINK EQUITIES
AND NOT A LOT OF MONEY FLOWING