00:00 Speaker A
I had a quick question because we already saw it this morning in Delta Airlines when they made their announcement. Sure, they beat an EPS and they beat on revenues, but they made it very clear that they were pulling back from offering any forward guidance because they’re unsure of the geopolitical concerns, or unsure of the tariff concerns, or unsure of the global economic concerns. If we get more and more companies that refuse to give forward guidance, should that really concern investors or do you think that everyone should just be kind of taking this in stride, understanding what’s happening?
01:09 Speaker B
Yeah, well, and we’ve seen that even play out in the uncertainty data we’re seeing from consumer and business sentiment surveys, right? And now it’s bleeding through into publicly traded companies where they’re, they’re uncertain enough they’re pulling back. We think that probably does put some pressure on the market. We think there’s some downside bias to the current bottoms-up forecast on S&P 500 earnings, which I think last night were around 268. We think there’s probably downside pressure to that number as we work through the full year. And I think it’s, it’s not surprising to see companies pull that guidance. That should mean investors probably need to be a little more cautious with the multiples they’re applying to these companies because we just don’t know how this really ends up. And it, it very much depends upon where do tariffs finally settle out. Right now the all-in tariff rate for the US is closer to 28% at this point. Do we really settle out there, or do we settle out more in the 10 to 15% range?
03:05 Speaker A
Right.
03:06 Speaker C
So Rob, final question. What’s your single best play in this environment if the uncertainty’s not going away. What’s the best thing for investors to do?
03:22 Rob
Uh, uh, really, so one, make sure you’re in the right risk tolerance, look to rebalance a little bit cautiously, but don’t, uh, don’t avoid bonds in your portfolio. We think there’s still good income to be made there, and, and that’s an okay place to be in the near term.