00:00What is your call for next year? So our story for next year is a continuation of what this year has been essentially, which is that we essentially got a kitchen sink in the first quarter.
00:08We made a significant bear market low in April. That was the end of an economic cycle. I believe that there's now a rolling recovery.
00:17All the policy changes that we've seen really affect a much stronger 2026 from an economic standpoint. And a lot of that has to do around this investment cycle.
00:27So our target 7800, that's the base case for 2026. I, you know, we've written about this as well.
00:34I think the very near term, we still have to get over this big hurdle with how the Fed is going to transition to being more dovish.
00:40Does that require weaker labor data or does that require maybe more financial kind of stress in the funding markets?
00:46We'll see what the catalyst is there that could create some near term opportunities. But we're a buyer of that dip if we get it.
00:51Go back to, you know, the inflection point. What changed your view? Because now you're one of the biggest bulls on Wall Street.
00:59Well, it's just flexibility. I mean, it's funny how you get a reputation. You know, you go from biggest bull to biggest bear.
01:05And we've had that over the last 10 years, quite frankly. So it's not new for us. I mean, we were happy to go either way, depending on what our work shows.
01:11Most recently in the last year, what's really changed for us is the earnings revisions. OK, so like this year, it looks much different.
01:17The earnings revision breadth is tremendous. I mean, that's the story. And I think that's the story that most people are still missing.
01:22And everybody's focused on valuation. It's like, look, valuations are OK if earnings are going to beat on the upside.
01:27And that's our call for 2026 is that we're seeing a broadening out in the earnings story.
01:32And we should see a broadening out in the equity story as a result of that. So we're just we're very disciplined around our work.
01:38I mean, whether it's sentiment or positioning or, you know, valuation or earnings revisions.
01:42I mean, we look at everything, Matt. And I think it's just, you know, at this point in time, it looks pretty supportive from a policy standpoint,
01:49from an earnings revision standpoint and evaluation. You grow into it.
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