00:00What would you tell clients who ask you, Laurie, what is this this morning?
00:04So, look, I think there's a whole lot of stuff hitting the market all at once. And we said
00:07coming into this reporting season that it was a chance for investors to kind of push the macro
00:11aside and focus on the micro. The macro has been pretty pesky in terms of sticking around in
00:16unusual ways. And I would also argue that the micro has been a little bit underwhelming.
00:20If you look at the beat rates and just a very simple, you know, kind of gauge on how reporting
00:24season is going. Last we checked last week, it was about 77 percent of companies were beating
00:29consensus estimates. Now, that sounds good. This for the S&P 500 until you go back and
00:33look at last quarter when it was like 82, 83 percent. So, you know, and we're seeing similar
00:37things on the rates of upward revisions, about 51.4 percent to the upside. Back in September,
00:43that was 65 percent. So, you know, we've described this as slightly squishy, not a disaster, but not
00:49good. Squishy is not a word I would use to describe what happened with Microsoft just last week. Luckily
00:53for them, Kevin Walsh happened to the Federal Reserve and we barely discussed it on Friday.
00:57Is that a warning ahead of Alphabet, ahead of Amazon? So, look, I think the other thing we have
01:02to contend with, if you go back to the second half of 2025, and it seems like ages ago now,
01:06it's been such a long start to the year. But we really noticed all the way back on Labor Day that
01:11we were seeing AI jitters coming back into the market. We've seen the PE multiple of the S&P 500,
01:15just a simple forward PE, hit a ceiling and be unable to penetrate it since really August. So we've been
01:21kind of seeing the multiple shift around. And I think especially on these top 10 market cap names,
01:25they're pretty much priced for perfection, the bar is high, and there's not a lot of room for error.
01:29I'm not an expert on any one of these individual stocks, but I can tell you that there was a healthy
01:34appetite even before all of these macro issues sort of hit the market of diversification. Do we need
01:40to diversify away from some of these big mega cap growth names? And that hasn't gone away.
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