00:00 Speaker A
I just wanted to highlight one more thing that the president, um, posted in this post, which again is quite long, but he says, I was to meet President Xi in two weeks at APEC in South Korea, but now there seems no reason to do so. And this is something the markets had seized on as a reason for optimism that progress was being made. Now, who knows if this is bluffing, if they are going to end up meeting in the end, but I guess as we’re navigating all those cross currents,
00:30 Speaker A
is this one more reason to maybe hedge in this market, hedge the AI uh boom that we’ve seen and buy protection, whatever form that should take.
00:47 Speaker B
Um, I mean, it’s always good to have obviously a balanced, diversified portfolio. And uh, and it’s actually a very good thing that this year, the market rally that, you know, in the US started three years ago next week, um, really has broadened to the rest of the world. not just China and emerging markets, but developed markets, Europe and Japan. So that is a pretty good hedge right there, even though they’re all uh all different equities, but
01:21 Speaker B
you know, you can buy similar fundamentals in Europe and Japan now in terms of earnings growth, the growth in the payout, which is the dividends plus buybacks. Those are the, that’s the share of earnings that investors actually get back. Um, and you can get all that for a fraction of the of the value, of the valuation. And so, uh, so there are ways to hedge. Uh obviously bonds are a traditional way,
01:54 Speaker B
some cash, gold certainly has have been a very effective one as of late. Uh, but you know, to try to time uh entrance, you know, entries and exits over headlines is always a very difficult thing. We saw how how bad the headlines were earlier this year and the market, you know, in its in its relentless pursuit of price discovery, um, you know, read those headlines and we fell 21% and I think the markets are now like, okay,
02:27 Speaker B
if it happens, then I’ll react. I’m not going to react just on headlines. So who who, so who knows? Maybe this is the art of the deal. Uh, but right now, I think the market is mostly focused on earning season, which is starting next week, um, and uh whether the the acceleration in estimates that we’ve seen since April or May, uh will continue to bear fruit.
