00:00One of what happens in that fiscal impulse starts to fade in the U.S. economy. So look you know
00:04if you look at the industrial sector it has been expensive forever. And I have been having conversations with U
00:10.S. equity investors small mid and large growth in value all varieties. Everybody loves industrials in the U.S. even
00:16my international clients love U.S. industrials. And I have been hearing about oh the ease is understated because the
00:22earnings power is massive because of all these things that Biden did. Infrastructure act on the IRA the horribly named
00:29IRA the chips act. And now we've got the one big beautiful bill. So there has been one stimulus measure
00:35after another under both parties. And I have just had investors willing to overlook that in the industrial sector despite
00:42my warnings that it's looking a bit overvalued. Now what I would tell you if you zoom back to sort
00:48of 1Q earnings we have this one chart in our deck where and this is simpler math. So this one
00:54will be a little bit easier. Thank you. But it's just a little grid. And we basically look since the
00:58beginning of April
00:59before reporting season started changes in 2026 earnings growth forecast on the consensus. And then we look and also try
01:06to track sectors that have better growth projected than the S&P. It's not just tech. We've also got materials
01:12in there and we've got energy in there. And energy is the one that's actually farthest out on the grid.
01:16So those are smaller in comparison. But you do have those commodity inflation driven sectors that are contributing to this
01:23move a little bit as well.
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