00:00 Speaker A
I want to ask you about technology stocks for a moment because you said a moment ago, you think, you know, rather than putting all your money in international right now, maybe reinvestment in the US. Um is it time yet to do that? If you, in other words, if you um are waiting for your entry point within large cap tech.
00:25 Speaker A
And is it dangerous to do it before earning season when we might have some of these companies say, for example, I’m not going to even make a forecast.
00:33 Speaker B
That’s a great question, Julie. Look, danger has all to do about one’s time frame and risk tolerance. So if you have a time frame of two to three weeks and you can’t afford to lose 10% or 15%,
00:45 Speaker B
you know, it’s right to stay on the sidelines until we stabilize. For those of the longer term perspective, I think it’s an excellent time to get into technology, honestly, right now. Uh you know, we’ve seen the mag 7 come down substantially. And as I I said earlier, I mean, the valuations are now much more in line. Some of these companies are cheap and they’re making a tremendous amount of money. They’ve all changed our lives for the better.
01:16 Speaker B
It’s important to look at technology as being what it is. It’s not going away anytime soon. The key is do do the does the tariff news cause these companies to all retreat and pull back so much so dramatically on on their spending that it could cause a rolling over. I don’t think any of us have any any insight as to that. We know Trump has being this transactional type president, right? Art of the deal. You scratch my back, I’ll scratch yours. This whole thing, unfortunately, is a game which has dramatic and unfortunate consequences for risk assets in the near term.
02:04 Speaker B
We still have 37 trillion in debt. 10 trillion of that needs to be refinanced this year. So we’ve seen over 100 basis point drop in interest rates. That’s going to save the US hundreds of billions of dollars. That’s actually a good thing that nobody’s talking about. But obviously, it’s unfortunate. Nobody wants to see the stock market go down. I wonder why he chose this this path. Uh you know, I’m hopeful that the China and Europe, we can we can find some arrangement, but uh you know, call me cautiously optimistic for the market over the next two to three months.
03:04 Speaker B
After that, we need to see a lot to think that we can repair all the damage that’s been done that S&P can get back to new highs.
03:12 Speaker A
Yeah.