00:00What do you think about stocks right now?
00:03You know, we're still really constructive on stocks, Matt.
00:05And I have to say, it does get a little uncomfortable when you've had a couple of these years of very strong performance,
00:11not just in the U.S., but of course, some of the broadening out that happened in 2025.
00:15And people want to kind of doubt the sustainability of the run.
00:20You know, you've seen this on a couple of stocks you were just mentioning a moment ago,
00:23and after their earnings report, that if it doesn't hit the highest bogey or the highest whisper number,
00:29people get a little bit itchy.
00:30That said, the fundamentals look really, really strong, Matt.
00:34And we are very anchored in the fundamentals in terms of our equity allocation.
00:37And as such, we are still continuing to have a significant positive view for equity returns over the course of the year.
00:45How then do you kind of say, all right, Microsoft gets slammed because it's spending a lot, but Meta does OK.
00:51And it's spending a lot.
00:53Sure, the revenues coming in are different.
00:55But, Kate, how do you distinguish which kind of spending from hyperscalers is OK and which is not OK?
01:01I mean, Dani, that's a great question because this kind of knee-jerk reaction, like some spending works and some spending may actually be negative for margins in the near term.
01:11It feels like investors' time horizons keep shifting based on a specific company.
01:17And look, here's what I will say.
01:18We want investments to happen at this point, not just in the AI cycle, but at the economic cycle.
01:24We think we're in a year of overall spending outside of technology, including in industrials and parts of other resources.
01:30And people are going to have to get comfortable.
01:33There was a knee-jerk reaction for a very long time that if a company was spending, if their CapEx was strong, you faded that because you were worried about the delivery on the bottom line.
01:41But I think we need to have faith that companies do an outstanding job today managing to their margins and managing to their earnings.
01:49And even if we have one quarter that looks a little softer, a little disappointing, it's not a reason for us to step back from our positive equity risk.
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