>> WELCOME BACK TO WAKE UP WITH
CHEDDAR EVERYONE LIVE FROM THE
FLOOR OF THE NEW YORK STOCK
EXCHANGE OR FUTURES ARE
POINTING TO A HIGHER OPEN THIS
MORNING AS INVESTORS AWAIT
REMARKS FROM FED CHAIR JEROME
POWELL AT THE JACKSON HOLE
SYMPOSIUM THAT COULD GIVE UP
CLEAR PICTURE OF THE CENTRAL
BANK'S INTENTIONS FOR TAPERING
STIMULUS ST. LOUIS FED
PRESIDENT JAMES BOARD SAYING
THURSDAY THAT THE
CENTRAL BANK SHE FINISHED
TAPERING BY THE END OF MARCH 22
MARCH 2022 US FUTURES ARE POINT
HIGHER AS OF RIGHT NOW ANALYSTS
ALSO PAYING CLOSE ATTENTION TO
THE SITUATION UNFOLDING IN
AFGHANISTAN FOLLOWING NEWS OF
THE ATTACK AT THE KABUL AIRPORT
THAT KILLED 13 US SERVICE
MEMBERS AND DOZENS
OF AFGHANS AND FOR MORE ON THE
MARKETS I WANT TO BRING IN JEFF
COURSE AND WHO IS THE CHIEF
INVESTMENT STRATEGIST ARE AT
5TH 3RD BANK JEFF GOOD TO HAVE
YOU WITH US THIS MORNING
MARKETS POINTING TO A HIGHER
OPEN TO CLOSE OUT THE WEEK,
WHAT'S DRIVING THIS MOMENTUM
FROM YOUR PERSPECTIVE.
>> A PRETTY MODEST MOVE THAT WE
HAVE A SHARPER SELLOFF
YESTERDAY. SO I THINK THIS
IS JUST SOME SOME BARGAIN
HUNTING AFTER A SELLOFF I
WOULDN'T READ TOO MUCH INTO IT.
>> AND SO WHAT ARE YOUR BIGGEST
TAKEAWAYS FROM THIS WEEK'S
ACTIVITY THAT WE'VE BEEN
WATCHING MORE BROADLY PERHAPS
IF WE KIND OF LOOK AT THIS IS A
BIGGER PICTURE
AND IN CONTACTS OF THE MOVE
THAT WE'VE BEEN WATCHING COMING
INTO THIS WEEK CONSIDERING SOME
OF THE ALL-TIME HIGHS THAT
WE'VE SEEN FOR THE NASDAQ AND
THE S AND P 500 OVER THE COURSE
OF THE WEEK.
>> I THINK THAT THE
LONG TIME LESSON OF OF MARKETS
CLIMB THE WALL.
>> IT IS VERY
HOT HERE. WE IF THEY'RE REALLY
THAT THE MARKETS CONTINUE
TO STRUGGLE WHETHER INFLATION
WILL BE AS THE FENCE AS
TRANSITORY OR SOMETHING MORE
THAT'S GOING TO BE A BIG
IMPLICATIONS FOR AND WE'RE THE
INFLATION. WE JUST HAD A NEW
PIECE OUT THE CALL TRANSITORY
ISH WHICH CONCLUDES THAT THE
BAN IS LARGELY RIGHT IN THAT
THE FORCES THAT ARE DRIVING AND
DRIVING INFLATION SHOULD BE
PASSING BY AND THERE ARE SOME
RISKS TO THIS STORY FOR TAKING
THE FEDS CONCEPT THAT INFLATION
EXPECTATIONS ARE WELL ANCHORED
THE LONGER
INFLATION PERSISTS THE MORE WE
RISK CHANGING INFLATIONARY
PSYCHOLOGY AND THAT'S A REAL
DANGER FOR
THE FAT.
>> AND SO FOR THE FED IF THEY
DO REACT AND SWIFTLY WALKED.
WHATEVER SWIFT LOOKS LIKE AT
THIS POINT IN TIME. YOU KNOW
WHAT DOES IT MEAN FOR THE U.S.
ECONOMY IF THE FED BEGINS
TAPERING.
>> I THINK IT'S A BIG
ECONOMIC IMPEDIMENT WE'VE
ALWAYS FOUND
THE QUANTITATIVE EASING WAS
IMPORTANT SEEN ONLY HELP ON THE
MARGIN IN
TERMS OF LOWERING INTEREST
RATES BUT IT WAS NOT CRITICAL
TO THE RECOVERY AND OTHER AND
BEING A SIGN THAT THE FED WOULD
DO WHATEVER IT TAKES SO
WITHDRAWING SOME OF THAT EXTRA
STIMULUS IS NOT GOING TO A
PROFOUND NEGATIVE IMPACT ON
THE INJURED STRANGELY WE'VE
SEEN VERY LITTLE MOVEMENT IN
INTEREST RATES IT HAS THIS
TAPERING DISCUSSION HAS HAS
MOVED FORWARD, BUT
IT'S IN A GOOD SIGNAL THAT THE
FED IS NOT ABANDONING ITS PRICE
STABILITY MANDATE. AND THAT
WOULD ONLY BE WELCOMED BY THE
MARKET ALONG WITH JUST TO
CONTINUE TO ADVANCE OF THE
U.S. ECONOMY.
>> IN YOUR OWN INVESTMENT
STRATEGY OVER AFTER 3RD WHAT
SECTORS WOULD YOU BE LOOKING
TOWARDS RIGHT NOW CONSIDERING
THE RISE IN CASES DRIVEN BY THE
DELTA VARIANT.
>> CONCERNED
WITH THAT WE ARE TRACKING
MOBILITY DATA AND WHAT WE WOULD
NOTE THAT WE HAVE NOTED, IT'S
JUST VERY IS THAT
EACH SURGES HAD LESS IMPACT ON
CONSUMERS. THE RECEIVING SEARCH
SO
THE SURGE. YES IS HAVING AN
IMPACT ON THE MARGIN ON SOME OF
THE CONSUMER A SENSITIVE AREAS,
YOU KNOW TRAVEL
IN AID WHAT HE MEANT BUT IT'S
NOT AN ISSUED THE BIGGER ISSUE
US
IS NOT WHETHER WE HAVE ENOUGH
CONSUMERS WE HAVE ENOUGH
CONSUMPTION GOING ON IN THE
ECONOMY WHAT WE DON'T HAVE
ENOUGH OF IS WORSE AND THAT
SEEMS TO BE THE THROTTLE WE
HAVE TO BE CONCERNED
WHICH IN THE U.S. ECONOMY IN
TERMS OF SECTORS BECAUSE OF
OUR USE WE THINK YOU NEED TO
HAVE A BALANCE BETWEEN VALUE
AND AND SUGGESTING
OF OUR REAL IN
TERMS OF THE MAJOR SECTORS OF
THE WORLD ECONOMY I WAS NOTABLE
HAS BEEN TO PULL BACK
EMERGING MARKET EQUITIES WERE
VERY CONCERNED WITH THE
APPROACH TRYING TO STAY
INCRIMINATE REGULATORY BASIS
AND ALSO HAVE SOME BACK OF MY
POTENTIAL FOR COVID TO SPREAD
IN CHINA AS WELL AND FURTHER
DISRUPT THE U.S. AND THE GLOBAL
SUPPLY CHAIN.
>> AND SINCE YOU MENTION
EMPLOYMENT JOBLESS CLAIMS
YESTERDAY CAME IN AT
SLIGHT TICK HIGHER IN FIRST
TIME IT'S RISEN IN 5 WEEKS WITH
MORE
COMPANIES IMPLEMENTING VACCINE
MANDATES GIVEN WHERE WE STARTED
OFF THE WEEKEND THE BROADER
CONVERSATION AROUND THE
APPROVAL THAT THE FDA GAVE TOO
PFIZER AND BIONTECH
AND COMMIT THAT COME HERE TO
THE COMMUNITY WE'RE ALL GOING
TO HAVE TO PRACTICE THAT
TIMES OVER. BUT WITH ALL THAT
HOW COULD THIS IMPACT OF THE
LABOR MARKET GOING FORWARD
PARTICULARLY ON THE WAGE FRONT
TOO.
>> YOU ON THE MARGIN I
THINK YOU ARE GOING TO SEE
CORPORATE AMERICA PLAYING A
GREATER
ROLE IN INSISTING ON EITHER
VACCINE MANDATES OR DOING
IS SAFE. SO WHEN THE AIRLINE TO
INCREASE INSURANCE PREMIUMS FOR
THOSE WHO CANNOT SHOW THEY ARE
VACCINATED SO THOSE ARE MOVES
THAT WILL. PLUS FRANKLY THE
SPREAD OF THE DELTA VARIANT ALL
OF US A MOOSE OF THIS MOVES US
CLOSER TO I'M ROD OR COMMUNITY
OUT THERE. WE ARE IN THE CAMP
THAT ARE
THINKING THAT. COVID ME AND
ULTIMATELY BECOME ENDEMIC TO
GET VARIANCE AND
SEE WHAT WE'VE BEEN SURE THOSE
THAT DON'T DISRUPT THE ECONOMY.
I THINK THAT'S THE PATH WE'RE
LIKELY ON THE KEY FOR US YES,
HIGHER I
WOULD HELP BRING SOME PEOPLE IN
THE WORKFORCE. BUT OUR
OBSERVATION IS THAT MUCH MANY
OF THOSE SIDELINE FOR THE
WORKFORCE AND THOSE WHO NEED
NOT JUST HIGHER WAGES,
BUT MORE IMPORTANTLY
EMPLOYERS SO THING WORK PARENTS
WHAT KIND OF COMBINATIONS DO
THEY NEED THINGS LIKE THAT.
HOME FLEXIBLE SCHEDULING TO GO
A LONG WAY WE SPENT A LOT OF
TIME JUST 30 RESEARCHING THOSE
WHO HAVE BEEN MARGINALIZED BY
THE LABEL FORCE FROM A PAST
HISTORY OF ADDICTION FROM
CRIMINAL RECORDS OR FROM SIMPLY
BEING POVERTY WHEN WE'RE VERY
ENCOURAGED BY IS THAT THE
LABOR SHORTAGE IS FOCUSING THE
SKILLS AND TALENTS OF CORPORATE
AMERICA ON. SOLUTION TO HOW WE
GET PEOPLE BACK IN THE LABOR
FORCE HOW DO YOU SELECT THEM
AND SUPPORT
THEM APPROPRIATELY TO TURN THEM
ONE OF IOWA'S PLEASE AND TEAM
MEMBERS THAT'S REALLY GOOD NEWS
IN THE LONG TERM IN THE U.S..
BUT IT'S A RACE WE'VE GOT TO
GET THAT DONE
AND BEFORE WE INFLATIONARY
FORCES FROM THE TIME THE MARKET
TO BE BECOMING A LEASH.
>> JEFF JUST LAST WEEK WHILE WE
HAVE YOU HERE I HAVE TO ASK
YOU IN INVESTORS ARE ALSO
WATCHING INTERNATIONALLY THE
SITUATION IN AFGHANISTAN, WHAT
PARTICULARLY WOULD YOU BE
KEEPING YORK I AND MOST NOTABLY
CONSIDERING WHAT IS UNFOLDING
IN FRONT OF OUR EYES AND HOW
THE MARKETS REACT.
>> MARKETS TYPICALLY DON'T
REACT VERY SIGNIFICANT LEAD
TO TRAGIC. I WOULD CAUSE LIKE
THIS, BUT THERE IS
A CONCERN THAT HE AND THE
SCHOOL THOUGHT THAT ARGUES THAT
WHEN
THE U.S. IT'S STANDING IN THE
WORLD IS
CURRENT DATA WORLD AND THAT
ASIANS SHOULD BE LOWER BECAUSE
THE ROAD BECOMES A MORE
DANGEROUS AND
UNCERTAIN PLACE. I THINK IT'S
TOO EARLY TO CALL AT WITH
AFGHANISTAN. BUT CERTAINLY
THAT'S AND WE WOULD BE
CONCERNED WITH IS THE WEST
LOSING A
LEADERSHIP POSITION OF OF THE
EXECUTION OF THIS WITHDRAWAL
RECESSIONS AROUND THE EXECUTION
OF WITH YOU AND THAT COULD HAVE
SOME
VALUATION IMPACT LONG-TERM
SIMPLY BECAUSE IT MAKES THE