00:00The way I'm thinking about rotation into Europe, the way I'm thinking about rotation into, I mean, small cap value,
00:05I mean, you can put lots of cyclicals in it, is it's all about earnings, right?
00:09So what we had last at the end of last year, and it looked like there was this idea of
00:14rotation is, I mean, prior to that, all earnings were in tech, and it looked like earnings were about to
00:19broaden, right?
00:20So we had earnings expectations in small caps and tech, in cyclical areas doing a lot better, and then investors,
00:27okay, we don't have to pay high multiples for tech, we can go and get better earnings somewhere else.
00:32So that's a real question.
00:33So if you say the scenario is that war ends, and we get, like, lasting peace, and oil price goes
00:40down, and kind of cyclical recovery picks up, yes, that's when you buy Europe.
00:45Are we close?
00:47Probably not.
00:48And even if we get, like, some announcement that war is over, I mean, oil price will probably stay fairly
00:52high for some time, we need to have adjustment.
00:55So I think that's a scenario we're looking for, to rotate into Europe, but it needs to come with a
01:00cyclical earnings recovery, and we're just not there yet.
01:03Well, what about European tech?
01:04How do you play that?
01:05Because we've got Tom McKenzie at London Tech Week this week.
01:08Everyone very excited about European, UK tech here.
01:12What do you like?
01:13I mean, we love tech anywhere.
01:15Anywhere and everywhere.
01:16And I think that was partially kind of the straight this year, is that we saw, or, like, middle of
01:21last year, is a rotation out of, like, U.S. software into Asian hardware or European hardware.
01:29Anywhere you see tech, that's, for us, kind of an interesting place to be, because it's secular earnings, right?
01:35No other sector has that.
01:37So, yeah, we love European tech.
01:39We wish there would be more tech in Europe, and that's why it would be, that it would be a
01:42better trade.
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