00:00Kate Moore of City writing holding excess cash during inflationary periods carries a real cost. So any market pullback could
00:07create an opportunity to deploy capital. Kate joins us now for more. Kate welcome to the program. Is this morning
00:13that kind of opportunity. It might be. But let me tell you something I'm trying to focus on. We've been
00:20watching very closely the speed at which all of these rebounds have happened over the last number of years and
00:25particularly over the last period post the pandemic.
00:30And the days of the rebound are getting shorter and shorter and shorter. So we're finding people step in even
00:37when they don't have great news simply because they have that fear of missing out and because they're being conditioned
00:42over the last five or six years that you may be at most you have 10 or 11 trading days
00:47to get back in when there's a bit of a bit of a pullback.
00:50So I think I'll watch to see what happens over the next few days. But I would suggest that if
00:55you want to be longer risk you can't wait too long. And the rest of the market has been trained
01:00to jump in very quickly.
01:02So Kate the essence of the call will underpin to the epicenter if you will is this inflationary push on
01:07investors right now. They need to deploy capital. Why is that capital going to find its way to the U
01:12.S. equity market specifically. Where are the other opportunities.
01:15Well I think we know the story that equities in general tend to hold their value better in an inflationary
01:20environment. But I think the very important point here is that aside from the demand destruction I think we should
01:25come back to that point that may or may not happen as prices rise for all of the components and
01:29everything related to the AI and tech trade.
01:31The really critical point here is that most of what's driving the equity market we know is kind of more
01:37secular in nature and not necessarily just cyclical even as some cyclical parts of the market have performed well.
01:42I say this because even if there is some demand destruction in parts of the consumer which of course we
01:48are not seeing at this point or in terms of machinery and equipment orders and things that are affecting the
01:53industrial sectors.
01:54You know we still believe that most of what's powering the market is going to be earnings and that's certainly
01:59what we've seen in the first almost six months of this year.
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