00:00John Stolfus of Oppenheimer calling for a street-high 7,100 on the S&P by year-end, writing this.
00:05Economic resilience, along with revenue, earnings growth and innovation across the sectors,
00:09remains key in our view to the market's ability to continue climbing the proverbial wall of worry.
00:15John joins us now for more. John, good morning.
00:17Good morning.
00:17Is that government shut down just another brick in that wall of worry?
00:20I think it's another brick in the wall, to quote Pink Floyd.
00:23But that said, we've seen the markets really overcome and traverse hurdles all along this year.
00:33And it is indeed. It's the innovation. It's the resilience.
00:37And it's a different structure in terms of the market itself, we believe, in terms of participants.
00:43The market is not just the guy with the monocle from the Monopoly game.
00:48It's all kinds of people.
00:50And in the U.S., it's multi-generational people.
00:53People investing for longer-term goals.
00:56So the disturbances that are caused by the potential for a short-term or intermediate or longer-term shutdown
01:04are of less concern to them right away, as opposed to getting money positioned for goals that may be three, five, seven years out.
01:13Can I build on that, John?
01:14Do you think there's some tension between different generations and how they view how this market should be valued?
01:18Some tension between the boomers and what they think the appropriate multiple is for this stock market with a different sector mix?
01:24Most certainly.
01:25I think, you know, when you look at people who've been – the boomer generation, stocks are cheap at a 16 forward multiple.
01:32As you go forward in generationally, people are willing to pay higher multiples for growth.
01:40And I believe the reason why a lot of it comes from Ed Yardini, who's for years said that the – what is it?
01:47The Wilshire 5000, there aren't enough stocks to really qualify that are publicly traded anymore for that indices anymore.
01:54Because it's – what is it?
01:55About 3,500 stocks or 3,400 that you actually have to choose from.
01:59And the thought is here is it's supply and demand.
02:03It's the basic thing of economics, the demand for your technology, your hyper-growers, the ones who are well-established, deeply embedded in the lives of both business and the consumer, where we're all on the upgrade cycle, whether we like it or not.
02:19As I always like to say, this is what's driving this market in many ways.
02:23And it differentiates, not just generationally, but the difference between traders who are looking at risk to capital – capital put at risk on a day-to-day, minute-to-minute basis – and intermediate to longer-term investors.
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