00:00Cameron Dawson of New Edge Wealth writing, we see potential for a continued tactical bounce,
00:04but we do not see markets as out of the woods for volatility. Cameron joins us now. Cameron,
00:10thank you so much for being with us. I want to just start with the idea of what dip is
00:15buyable?
00:15Are we looking at something that actually cheapens stocks enough to just hold your nose and buy?
00:21Yeah, we got to the point where markets traded down to 19 times forward earnings on the S&P 500.
00:26That's not historically cheap. It's cheaper than it was, of course. Back at the end of October,
00:31we traded to 23 times forward. But I think the important thing to note is that as of Monday of
00:37last week, we did get a little bit oversold on a short term basis, which is why we think the
00:43markets were able to rally. But we expect volatility to continue because there still is so much optimism
00:49that this war will end quickly and it won't have a big impact on growth. And you can see that
00:54from
00:54so many angles. Look at the Brent futures forward curve where you have this expectation that oil
00:59prices will return back to normal fairly quickly. Look at high yield spreads remaining contained
01:04valuations still at 19 and a half times forward. The fact that GDP estimates are still 2.3 percent
01:10and add on top of that, the earnings estimates have gone up for 26 and 27. So there's still a
01:16fair
01:16amount of optimism, even though we have seen some of the positioning shake loose and some of the
01:21valuations get compressed.
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