00:00When you've got the doubt over the Fed's commitment to fighting inflation, when you've got all this change in the
00:05way it communicates, the Middle East, you've got the fiscal concerns, all of these broader things, why are we not
00:12going back to sell America?
00:15Well, it's because of the sustainability mainly of that earnings story.
00:20I mean, we're very likely to finish this quarter of earnings with what will be the seventh quarter in a
00:25row of double-digit percentage earnings growth in the U.S.
00:2810 of the 11 sectors in the S&P are showing margin expansion.
00:34We're seeing hundreds of basis points of positive spread between companies that are leaning into AI and those that are
00:41not in terms of their profitability.
00:43So the earnings story very much so is coming through, and that makes it very reasonable to continue to allocate
00:50to a healthy degree to the U.S.
00:52And on that valuation point, partially because the earnings have been so robust, I mean, the valuation level, the forward
00:58P.E. of the S&P is just south of 20.
01:01Even for tech, it's only at about 21.
01:04These are pretty close to five-year, half-decade types of averages.
01:07And with that earnings delivery and reasonable valuations, we think it is reasonable to be healthily long the U.S.
01:14market.
01:14So, let's get started.
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