By coinnews 
00:00 Speaker A
Kathy, I want to bring you into the conversation because that 30 year at 5%. Are you a buyer at those levels?
00:09 Kathy
No. Um, we’ve been suggesting staying at benchmark intermediate term duration or a little bit lower because our concern is you have a a mix of policy here that doesn’t really hold together very well. It’s kind of incoherent. So on the one hand, you have a very fiscally expansive budget, um, which are coming at a time when we already have a large and and growing deficits. So that doesn’t help on the long end. And then you also have a policy of trying to deglobalize or, uh, reduce our trade deficit, which means the dollars pretty much goes down and capital inflows from foreign investors go down. So on the one hand, you’re you’re feeding the need for more capital inflows. At the same time, your policy is discouraging those capital inflows. And so what you see is this this um, tension in the market, and I think it’s expresses itself in the weaker dollar and higher long-term yields. So we prefer to stay intermediate term or below and stay up and credit quality until all this gets sorted out in one fashion or another.
00:58 Speaker A
Yeah. And Jeff, come back into the conversation because Kathy is mentioning sort of the uncertainty in the room that remains with the policy lack of clarity right now. I I wonder then, how do you advise clients in terms of positioning? Do you do the Mike Wilson model this morning saying buy the dip? Do you follow the Lori Calvasina model from this morning that there’s concern about EPS going forward at these current levels? Which is it?
01:17 Jeff
We’re holding your ground. And we went our theme going into this year was clear air turbulence where that happens at high altitude where you get air pockets out of nowhere in blue skies and you fall and then recover as you get fairly good pilot
01:37 Jeff
navigation, and you find out that the data is still supportive. So, uh, in this environment, it’s all about removing portfolio imbalances. Make sure you don’t have too much Mag 7, but make sure you have some. Make sure you have international as well as domestic exposure for those reticent to have any international. Make sure that you have some. And then across your sectors, you need defense and you need offense. And so the whole idea is to be balanced, but hold your ground, and I think it’s cavalier and premature to say buying the dips. It’s also premature, I think, to say you need to run, uh, for the hills. And it depends on what type of investor you are. If you’re an aggressive investor, okay, fine, you can buy in the dips. If if you found that a 20% correction or close to it freak you out, maybe this is a time where we’ve recovered where your overall, uh, allocation equities was too high to begin with. If you can’t withstand that from a psychiatric standpoint, maybe you reduce your exposure. So that’s where we are.
03:01 Speaker A
Yeah.
03:02 Speaker A
So, Jeff, I I heard you mentioning tech there. Do you sell or fade into rallies on tech?
03:14 Jeff
Uh, so we’re neutrally weighted in tech, but more diversified than, you know, you would see in the S&P 500. The exposure to Mag 7 makes us nervous the amount. So, um, selectively, we find some very attractive names in in tech. Quite frankly, I think the industrials, when we have this need to build out the grid, the power demand that’s going to come, there are some exciting opportunities to in in industrials, and that’s where we’re overweight at this point in time.