00:00 Speaker A
You call it, I like this here, Chris. You say, you know what this is? This is a beautiful consolidation. What do you mean by that, Chris?
00:07 Chris
It’s great. Well, what I what I mean is it’s um coming into May, June, the market was so frothy and you could have been really quite worried about it. There was a lot of speculation and all these stocks that uh we’ve just been hearing about Intel had gone up 150% in six weeks. I mean, stocks aren’t supposed to do that. So, so you could have been really quite worried about it. But what we’ve seen since mid-may, June time, it’s really an S&P 500 just flat as a pancake.
00:29 Chris
I mean, basically the S&P is exactly where it was in mid-may. Exactly. 7,400, 7,500 on the nose. But under the surface, I would say it’s like a duck. On the surface, the duck looks serene on the pond and wonderful. Under the surface, it’s battling away.
00:43 Speaker A
Yeah, yeah.
00:44 Chris
And you’re getting the churn in the sectors. The sectors are churning hard. We heard about the semis, down dramatically, Philly socks down 30 odd percent from its high. And of course, you know, uh health care’s been doing well, financials have been doing well. So in the aggregate, the market’s flat and and it’s held on to its gains. And I I love that because you could have easily made an argument the market was very greedy in May, June. It should have gone down 10, 15%, but it’s gone sideways.
01:06 Chris
That is very bullish in the medium term.
01:08 Speaker A
So is that is that saying to you Chris that we’re we are we going from like an AI driven market to something broader? Is that what you’re seeing?
01:13 Chris
I think it’s telling us we we we we’re changing sector leadership. That’s what we and when you change sector leadership when in a in a market that’s been been greedy. It’s it’s very encouraging. It’s changing, telling you something else is going to lead it out. Now it’s probably going to be cyclicals. It’s my caveat is what happens to the oil price over in Iran. This is a bit of an issue. But let’s assume that’s all fine, then I think cyclicals can lead us high because this US economy that’s been broadening this year, the industrial cycle’s back, the bank credit cycle’s back.
01:35 Chris
It even looks like job creation might be coming back. So, so that’s a good environment for cyclical stuff. And I I love the world roads. I’ve been pushing the world roads this year. You know, if the world roads go up and they they’ve broken out of a range in the last 6, 9 months. If they’re trending up, they’re telling you there’s more activity. There’s more stuff moving around the country.
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