00:00Way. And I do want to ask you about this earnings season. I mean, we’re really getting into the heat of it next week with the Amazons and Microsoft and Apple’s of the world. But we’ve gotten a taste so far over these last couple of weeks and earnings that so far, I thought been good. I wonder how you what you make of what we’ve learned so far and whether you think that’s going to continue over the next few weeks. Yeah, So it’s early days. We’re only 20% through, but 80 plus percent of companies have given us a beat. So I think we’re good. Good start. And if you think about the tech companies in particular, when they gave us guidance in April, I mean, this was really the heart of the fear. So I think the bar could be a little lower. So I think we’re teed up pretty nicely. But let’s see, when we talk about this rally that we’ve had off of those pick, the April lows or whenever, it has been relatively narrow in video. Microsoft like a quarter of the rally so far. And it doesn’t really get much broader than that. Do you see the potential where we will see more broader participation in this rally, particularly when you get down into the mid-cap space and the small cap space? I do think it will broaden out. Yeah. And you’re right, the rally, I mean, it’s been incredible. We’ve seen three years of returns in three months. And it brings us back to this very familiar problem which which you’ve highlighted, Romain, which is market concentration. The Max seven are one third of the S & P 500. And on the go forward basis, we look forward. I do think the big will get bigger. So you want to continue to lean in there, but look beyond the max seven and by the way, not just to the other 493, but really to the other 8633. And we will look across our team around the world. I think they’re our highest conviction view to diversify is going down and out. When you say down and out, you’re talking about down in size. So that would be small caps in out, meaning globally beyond the US. What are going to be the catalyst, though, for small caps to really breakout in a way where they can sustain that advantage over big caps? Yeah, so we’ve started to see them come back a little bit. So we see a little life month today. Small caps are outperforming large and I think longer term, the setup is pretty interesting. If you look at small caps, compare them to large, we’re expecting double the earnings growth and half the valuation. But to your point, Scarlet, we need those catalysts to come through. So what do we need? One good healthy US economy. And two, we need the Fed to potentially start lowering rates. Both of those things are coming together in the back half of this year. And number three, capital markets activity are coming up. We’ve seen 100 IPOs this year and M & A activities should come up, too. So you’re a great setup. You’re a fundamental investor. When you talk about lower rates, where are you looking to see that filter through to the bottom line? I mean, it sounds like financials would be an obvious play there. Yeah, it’s financials, which is a big part of the benchmark and that that matters. But I think it’s it’s really beyond that. I think maybe taking a step back if we’re thinking to also what we really like, what we don’t like is actually the index, because one third of those companies are not profitable. So that’s not that’s not going to help us generate long term wealth. But we do like financials. We like two companies that are linked to the air theme as a revolution. The big are going to get bigger. Mega-cap is going to be a big driver of that, but you’re going to see other parts of that too. The small cap market as well. Is there an opportunity to ride the air wave and really just the overall structural trades that we’re seeing in the US market, does any of that translate to some of the major markets outside the United States? Absolutely. And there’s a lot of quiet winners. Are they even even Europe? A big theme we see in Europe is around this kind of powering trend around AI. And what’s really nice actually, when you put Europe in your portfolio along with the US, you have this really beautiful barbell because in the US it’s about growth, it’s about the Mach seven in tech. But in Europe actually value is leading and since 2022 European banks are outperforming the max seven. So great diversification is there. But when we talk about what held Europe back for, yes, it was this idea or at least the perception that these weren’t really it wasn’t really a growth economy. It wasn’t really a growth market. And if you wanted that growth, you basically had to be in the US, invested in tech or or tech adjacent here. Is there a growth case? I understand there’s a value case yet for Europe, but is there a growth case? There is, yeah. And the callus here is unprecedented policy. So if you look over the next decade, Germany, which of course is the powerhouse, is the biggest economy within Europe, is going to deploy €500 billion of capital. So we haven’t seen that come through. We’re going to likely see it come through for a while. So we could actually be at the precipice for a pretty powerful revival, which will take growth from very low to maybe not so high. But that inflection point of change matters. How much defensiveness should you have in your portfolio or do you achieve that through value stocks In Europe, for instance, you got to be balanced. So I think you want the mix, the defensive, you want the mix of cyclical. And there are some really interesting defensive link companies in Europe that are also going to benefit from this policy shift. Okay. And in terms of where you want to be with something like alternative assets, crypto obviously having a big, big moment. Yeah. How are you thinking about that and where exposure to that might take away from? Yeah, you know, it’s interesting. I think it’s early to. See where that falls through. I think it’s encouraging that regulators are embracing that. We haven’t embraced it in a massive way for our portfolios, but it’s something we’re looking at very closely.Stream Schedule:US BTV+
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