00:00 Speaker A
And do we just keep it that simple, Andrew? Do we say, listen, the economy’s resilient, that’s translating into what looks like healthy earnings growth, market’s moving higher.
00:08 Andrew
Yeah, I think from our perspective, if you look at where the Fed sits today and their policy stance, which is incrementally moved in a dovish direction. They’re doing that. Now, they say they’re going to try to protect and sort of take out insurance against a labor market that might be faltering somewhat. We don’t think the labor market’s, you know, cracking or is issue, you know, experienced some like acute issue at this point in time.
00:26 Andrew
We think the labor market’s sort of normalizing, coming off the boil. Okay, so if the Fed is cutting, the economy is reasonably healthy, the labor market is reasonably okay alongside that, then you’re putting stimulus into an economy that’s okay. All in all, that’s going to be supportive of of corporate health and corporate earnings.
00:39 Speaker A
Now, how much do you think Andrew of that good news we’ve priced in here?
00:43 Andrew
Yeah, I think that’s the question in particular if you look at the Mega cap tech segment of the market or really kind of the high beta, high growth segment of the market. We we talked a little bit about meme stocks before we came on here too, right? Just showing that there is a little bit of a speculative excess perhaps building in in some segments.
01:00 Andrew
I think that can continue as long as you see financial conditions reasonably easy and accommodative in this environment, which again, underpinned by what the Fed is doing right now, uh sort of providing stimulus via rate cuts and forward guidance that they will continue to support the market.
01:14 Andrew
So, you know, I think all in all, it tells you you can continue to ride a wave of momentum, notwithstanding a few blips here and there or some technical corrections, but we think it’s a pretty positive sort of environment for risk assets.