Transcript:
Caroline Woods: Joining me now, Ted Thatcher, founder and president, Bright Lake Wealth Management. Ted, welcome back. Great to have you at the desk.
Ted Thatcher: Great to be here.
Caroline Woods: Thank you. All right. So we’re seeing some green on the screen a reversal from earlier this morning. The S&P is about 1% away from record highs. But you’ve pointed out that about more than 80% of stocks in the S&P 500 are at least 10% below their own highs. And now we’ve seen kind of eye selling off intermittently as well.
Caroline Woods: Is this a market full of bargains or investors overlooking a warning sign here.
Ted Thatcher: You know, Caroline, just because the stock has moved down doesn’t necessarily mean it’s a good buy. But I do think that I see this bifurcation in the markets. When we look at what’s happened since the March 30th lows, the S&P 500 pushing near its all time high now really has been led by basically ten companies. We know the eye trade has led this market.
Ted Thatcher: Given how much pressure has been on the broader equity market because of oil at $100 a barrel, because of inflation pressure, because of interest rate hikes, and then of course the yields pressure we’re getting on the ten year overall. And so I think that you kind of have two different equity markets right now. You said the the data point there, but basically 82% of the S&P 500 is down 10% off of its highs.
Ted Thatcher: 60% is down 20% off of its highs. Basically saying that, you know, you could make an argument that most of the S&P 500 is effectively in massive correction territory here. The way I diagnose that, though, is it’s really because of all the pressure in the areas that, you know, I was just highlighting. And so I expect that over time, we’ll get relief in each of those areas, and that will end up being a tailwind for the breadth and the depth of the market.
Ted Thatcher: So we don’t have such a concentrated and volatile, you know, leadership in the marketplace.
Caroline Woods: Okay. So you mentioned that stock 10% or ten stocks have driven 70% of the S&P 500 gains since late March. Yeah. We asked you to bring a few of your stock picks with you. And funny enough, your three stock picks that you brought are in those ten stocks. So why chase the big same old winners and not try to find new ones out there?
Ted Thatcher: Look, I think that you have to own leadership in a marketplace like this. You know, we, one of those picks, of course, is Nvidia, and it really is. It’s the it’s the 10th hole in the AI trade. It’s the load bearing wall. There’s all kinds of different analogies people use. But at the end of the day, I think Nvidia is a perfect example of how a stock price and its actual, you know, perceived value went from a price to earnings standpoint can be really thrown off from each other.
Ted Thatcher: You know, Nvidia this year, it’s you know, if you look at the last 12 months or so it’s trading around 23 times earnings. If you look at the forward multiple though it’s in the 1513 you know, maybe 16 range depending on what projections you look at a company like Nvidia that commands, the marketplace like it does trading at that kind of multiple.
Ted Thatcher: I think that over time that’ll get rerated. And I think there’s still upside of the video.
Caroline Woods: I was taking a look at your price target. You have a $300 price target on Nvidia. So that’s nearly 40% upside from current levels. Nvidia is about 10% off the highs right now. So what is the market still missing or what does Nvidia need to do to make up for that 40% that you that where you see it going.
Ted Thatcher: Well, I think there’s a whole lot of different reasons that there’s been I would say overall pressure on Nvidia is market capitalization, not the least of which is just how much sell pressure there is on Wall Street because of all the hedge funds basically having to have something big enough to bet against to properly hedge their, you know, semiconductor and build out positions.
Ted Thatcher: And so as, I think over time, we’ll see that get rerated up. Again, a forward earnings multiple in the low teens for a company of its size, I think is a cheap way to buy it. And then further, you know, you see, Jensen’s comments, he’s saying, you know, he thinks the company could grow as much as 100% next year.
Ted Thatcher: You know, depending on, you know, what clip you get him in that day. And with that much upside, I just I really believe in, you know, letting your winners ride, as they say. And so I think that I see a lot of upside here.
Caroline Woods: Still for a first name basis with Jensen was very impressive. You know core we was down about 25% last week. And I saw in your notes that you actually suggested that Nvidia could step in and support core. We’ve if necessary. At what point does supporting Nvidia’s customers actually become a risk to Nvidia shareholders, though?
Ted Thatcher: Sure. You know, well, when a company we even saw a little bit of risk for Nvidia shareholders last week, I think if you are a dip buyer on Nvidia last week, you know, that would definitely go with the trend that I was just outside, outlining there. But, you know, with core way of getting caught up under so much of the pressure because of basically, you know, the smart money on Wall Street saying your bonds are more likely to default than they were before.
Ted Thatcher: Honestly, I thought that the statistics around that were quite interesting. You saw the pricing on bonds, and specifically the insurance on those bonds. The credit default swaps basically go to a 6,016% likelihood that core would leave, would default in a given year. And if you multiply that over five years time, that’s basically a 55% probability that core wave could default.
Ted Thatcher: Now, that’s not what I’m predicting, and that’s not what I’m saying is going to happen. That’s just what the math implied last week. And so I think that that under, under appreciates just how incredible the I build out. And the chip demand is core. We’ve really has a reputation of really great reputation for standing up, compute.
Ted Thatcher: And, you know, a lot of, a lot of the players out there have had a hard time extending it up at all. When you pair that with the fact that Nvidia is an owner has an ownership stake in core, we’ve I think that beyond the natural demand in the marketplace being a prop for core, we’ve in the future, you also see a company with the balance sheet of Nvidia.
Ted Thatcher: To me, I just don’t see a world where they’re going to let core we fail. If that’s really, a risk that we’re concerned is on the table.
Caroline Woods: So would you buy core? We’ve 60% off the highs right now.
Ted Thatcher: I think in the neo cloud space. I like that name. I don’t think I demand is going anywhere. And if you’re going to and if you believe in the future, it doesn’t mean it couldn’t potentially get a little worse before it gets better. But I think in the future we’ll look back and say, man, that might be a good price.
Ted Thatcher: We wish would have owned that. Oh, back.
Caroline Woods: Then it wasn’t one of your stock picks, but we get a bonus.
Ted Thatcher: Bonus.
Caroline Woods: Of moving on to the the second pick that you brought, Microsoft. You see more than 10% upside from here. Tell us why.
Ted Thatcher: You know, I’ve been banging the Microsoft drum for a while now, and what I love about Microsoft really is the discipline with which they have approached this. I build out, you know, think about how much pressure they were under earlier this year. They had every reason from, I would say, the general marketplace as well as their shareholders. You know, Microsoft was trading at $390 a share, to to maybe chase the eye trade, try to put products out quicker than maybe they were prepared for.
Ted Thatcher: You know, Satya Nadella has done an amazing job leading or leading through a very transformational time period. And look, they’re starting to get rewarded for it. The discipline both in their product and, you know, launches and implementation both in the enterprise and consumer levels. And then on the financial level, you know, they’re one of the hyperscalers. That’s not necessarily just trying to, you know, take on debt to do these data center build out.
Ted Thatcher: They’re funding it from cash flow. And you pair that with great execution. And I think Microsoft has further upside from here. You know I my target is around $600 a share right now okay.
Caroline Woods: And alphabet is the last pick that you brought. You see a price target of $425 a share. What gets it there?
Ted Thatcher: So when I think about alphabet, I think about certainly their track record and leadership. So obviously Larry Page and Sergey, I started the company, you know, famously sort of getting back in the chair, as it were, when it came to the I, push that Google was making. And then Sundar is of the company. Now, if you look back over the last 20 years, Caroline, you have a 32% ROIC return on invested capital for shareholders.
Ted Thatcher: I think every shareholder that owns Google can point to that and say, wow, my capital is in good hands when it’s that alphabet. And when you pair that kind of track record with what I call their their full stack advantage, their vertical integration in the marketplace, you have the TPUs, the chips that they own, the hardware that they’re getting better and better at.
Ted Thatcher: Then you add on a performance model in Gemini four. Argon four is what they just released, which is their a genetic platform. Once consumers get their hands on an agent model from Google, I think the third layer is going of their full stack advantage. Their distribution layer is going to really put more momentum behind Google. And just broadly speaking, I think that their execution has been fantastic as well.
Caroline Woods: Okay. So why those names over Apple Amazon, meta, Tesla, the other Meg seven.
Ted Thatcher: Well I think again it comes in my view it does come down to execution. Now Amazon actually is a name that I think is executed really well. So I’m not trying to say that there aren’t great executors or operators in those businesses. But like I said on Microsoft specifically, I love the discipline there and I just really love the track record Google has laid out.
Ted Thatcher: Apple’s a different sort of version of the play for me. I was actually quite excited when I saw that there. It looks like going to be having views as their platform integrated with, you know, everyone’s iPhones to be able to, you know, start to interact on a consumer level more with agents. I think that’s compelling as well. But to me it’s about execution and discipline.
Caroline Woods: So which of those Apple, Amazon meta and Tesla would you say are buys in which would you say, you know, waiting now?
Ted Thatcher: You know, I would say very much Apple would be a buy for me. I really like that.
Caroline Woods: Even at these levels.
Ted Thatcher: You know, I think that when again, I kind of come back to sometimes you got to let your winners ride. It’s not it’s not that I don’t think that there has been a move up, but I love a name like Apple even, you know, after, Tim Cook has the. I think that there’s maybe been a little bit too much, maybe potential concern about that.
Ted Thatcher: And when I see the. So we were talking about, you know, Google’s full stack advantage. Apple has an unbelievable moat in the hardware distribution that they have. I don’t know anybody that doesn’t have an iPhone. And I don’t necessarily think that everyone’s going to start putting on, you know, glasses or a pin or something. I think we’re still going to be on that hardware platform for many years to come.
Caroline Woods: Okay. Are any of themselves or avoids.
Ted Thatcher: You know, I wouldn’t necessarily put a get away from any of these names. I think I’m a little concerned, with, you know, some of the things that Tesla gets, up in arms about from a profitability standpoint. But when I see a car flying, you know, every, you know, every post I see on social media, I start to get reminded just how incredibly innovative a company like Tesla is.
Ted Thatcher: And, you know, some people have talked about a potential merger between Tesla and SpaceX. You know, that’s compelling to me. And so, you know, maybe on the financial side, I think that there is always sort of been this warranted criticism there. But from a excitement about the future, from a optimism standpoint, I think, you know, I broadly see a lot of positivity.
Ted Thatcher: And I tend to be a little bit more of an optimistic investor in that way.
Caroline Woods: Okay. You also like the equal weight S&P 500 RSP. Sure. I had a guest on yesterday who basically said investors switching to equal weight will likely underperform the S&P 500 because Big Tech deserves its dominance. Yeah, you want exposure to both Y.
Ted Thatcher: Yeah. Well it comes down to you know I would say a diversified approach. So I mean the reason that you would want to own many of the names that we’ve talked about in the top of the market is because it well, certainly because it’s driven performance, but because you’re not just getting one type of exposure to the future of the world and the future of the American economy.
Ted Thatcher: We started off by saying, you know, let’s think about the macro situation that equity markets are in. You know, there’s a reason that for 90 of the S&P are effectively down if you speak with a broad brush here. And so I think actually the play on that is just a belief that over time some of these geopolitical and macro problems again, oil fuel inflation, pressure rates, those things will eventually I think come back to Earth.
Ted Thatcher: And that will end up being a tailwind for the broader marketplace. When I put 100% of my portfolio in an equal weighted S&P. Of course not. But I think in this marketplace, given how much pressure it’s been under, is sort of an out of the money, way to look for future returns.
Caroline Woods: But if someone already owns an S&P 500 index fund, should they add RSP to that with money coming from wherever that money comes from? When people say don’t take from it, but, or should they replace part of their existing position or just stick with what they have?
Ted Thatcher: You know, when we look at a whole portfolio, there’s so many different ways to analyze it. I wouldn’t necessarily go, oh, so part of your, you know, S&P 500 stock has a lot of exposure to the companies that we’ve been talking about that we’re very bullish on. But you know, when we think about, hey, what are some tactical ways that I could allocate capital to maybe, you know, give me, some tailwind over time.
Ted Thatcher: Let’s, let’s say six months, a year even further beyond that, you know, for a slug of capital, I think that that’s how I would play that.
Caroline Woods: Okay. So if I gave you $10,000 today. Sure. And said divide it between Nvidia, Microsoft, alphabet and RSP for me.
Ted Thatcher: Sure.
Caroline Woods: So how would you do it?
Ted Thatcher: Nvidia I would say basically probably the Nvidia Microsoft Alphabet would take the lion’s share of that maybe 60 to 75%, and then the remainder in that RSP.
Caroline Woods: And Nvidia, Microsoft, Alphabet would all have.
Ted Thatcher: Equal approximately equal weight.
Caroline Woods: Okay. What is your market outlook. So you’re obviously bullish on tech. You want exposure to equal weight. Where do you think this market goes between now and your end. Given some of the headwinds that you mentioned at the top. You know we have the ten year yield above 5%. We have oil that’s back below $100 right now, but still close to 100 on again.
Ted Thatcher: Off again every year. You know, when I look at the market outlook, a lot of investors are asking what should I expect when it comes to elections? You know, should I be concerned about elections? What if the party I just, you know, I don’t prefer wins or vice versa? I think it’s really important to take a half a step back, Caroline, when we think about elections and say, okay, what does history tell us?
Ted Thatcher: And if we look at the last 50 years, history tells us elections are actually pretty positive for markets. In the fourth quarter of midterm election years, the S&P returns on average about 6.6%, which is nearly double the average fourth quarter. If you look at calendar years after midterm elections, the S&P on average returns around 17%, not quite another double the average.
Ted Thatcher: And so I think when investors step back and get a little bit of perspective, even with all of the muddy water that we see in the markets today, I think that you have a lot of reasons to be optimistic. We can I think if you get too pulled into the idea that, oh, interest rates are high, the market can’t go higher because of that.
Ted Thatcher: Oh, oil’s at $100 a barrel. There’s no way the market can get, you know, any higher because of that. I think I’m almost I would say tired of hearing that narrative. I think so long as we have the pressures that we’ve been talking about on the equity markets, the markets will simply continue to be quite volatile because concentration will continue to exist.
Ted Thatcher: And when you underwrite, you know, multi-trillion dollar potential future outcomes, say, in the I build out every new bit of little information when things are very concentrated, are going to it’s going to create huge waves.
Caroline Woods: What is the biggest risk to your bullish outlook then right now, and what would make you start taking money off the table?
Ted Thatcher: You know, if we saw a real change in the I build out, you know, not just, maybe some risk getting priced in on the NIO clouds. But if we really saw, you know, some of the major hyperscalers not being able to attribute, you know, Google’s 80%, over 80% cloud growth last quarter, if we saw Azure and Microsoft’s AI segment of their business not able to produce a over 40%, growth in theirs, last quarter, we’ll see what those numbers are this earnings season.
Ted Thatcher: But I expect a good earnings season. You know, two thirds of earnings growth over the last year has really been able to be attributed, in pure dollar standpoint, to the hyperscalers and basically the semiconductors and the chip names and those types of things, leaving only a third of that for the rest of the S&P 500.
Caroline Woods: If we do start to see signs that the eye trade is starting to crack, what would you sell first?
Ted Thatcher: You know, you’d have to sell, you probably would have to sell Nvidia because you would presumably expect, you know, everyone’s buying all of Nvidia’s chips. That’s exactly where the demand is going. So that’s where I would expect anyway. The demand to suffer first.
Caroline Woods: Okay. And just to go back to your market outlook, you talk about some of the volatility that we could see around midterm elections, but ultimately it could end positive. What is it that drives this market higher from here.
Ted Thatcher: Until we get relief on oil. You know fuel prices I would say you know yield pressure and and interest rate pressure. The air trade is going to continue to lead the market. We saw that throughout this entire conflict. You know, when oil was last at $100 a barrel, you know, I think it was in April or so, what was leading the market and pushing us to highs.
Ted Thatcher: It’s by trade now. You know, Brant was at 111 yesterday or so. Was the morning. Yeah. This one.
Caroline Woods: 11 I think.
Ted Thatcher: It sold off a little bit here. But, what’s leading the market today is the air trade. We may not like the concentration, but as investors, we have to understand what that means. It means volatility. And that’s just right now until we get, you know, some relief on those other areas, the price of admission in this war.
Caroline Woods: But I guess the two part question, first part, how much higher can the market are? How much longer can the market keep climbing given those headwinds, even if it’s just I stocks that are doing the climbing.
Ted Thatcher: I am actually in the seat that I expect a very high probability that the S&P could still reach 8000 by the end of the year. How much higher can a climb while as high as earnings can take us? You know, at the end of the day, you know, the stock market is it has to come back to fundamental earnings that we see.
Ted Thatcher: And I don’t actually, you know, expect very massive slowdowns on the earnings of these large companies. We’ve seen projections. FactSet says we’re literally going to see another you know, high 20s in terms of earnings growth, this quarter. And when the lion’s share of that is, generally speaking, being gathered by those large names, it tells me that on a fundamental basis, there’s actually a case for it.
Caroline Woods: Okay. And then second part of that question, at what level does oil have to be that would make you more bullish that we’ll start to see a rotation into some of the other areas of the market, and not just in tech.
Ted Thatcher: You know, I’d love to see oil just on a negative trend down towards low 80s, high 70s. If we get that kind of relief, I think you’ll start to see all the inflation projections come down. Notably, I think you’ll start to see, you know, presumably if that happens, we’ll start to see flows of oil around the world also increasing.
Ted Thatcher: So right now, if you look at the Middle East, you know, in the Strait of Hormuz, the headline has basically been 14 to 15 million barrels a day, effectively getting back to about 80%, of what the pre-war, you know, distribution was around 20 million barrels a day. The problem really has been refined fuel, diesel and jet fuel because of all the conflict.
Ted Thatcher: A lot of those refineries, you know, got caught up in that. And so we’re sitting effectively at about 50%, output capacity of those pre-war highs. And to me, when we think about the inflation story in the United States, it comes back to diesel fuel. And that’s a big, you know, driver of the reason why we saw the CPI last week up at 3.7% year over year.
Ted Thatcher: Over half of that extra increase we saw was directly attributable to fuel.
Caroline Woods: So if we do see oil in the high 70s, low 80s, I think is what you said, how would you position your portfolio differently?
Ted Thatcher: Yeah, I think I would probably as we see that type of rotation, say, oh, okay. Well, you know, the breadth and the depth of the market, that RSP example probably could use a little bit more capital. You know, maybe the ratio that we talked about earlier would change a little bit. Like I said, I think what’s going to drive it in the short term is still going to be the I trade, as volatile as it may be.
Ted Thatcher: And as we get relief in those other areas, that’s where my I would say rotation triggers would be to those other, you know, other sectors, like what? You know, I was I’ll say this, I was really hopeful about financials coming into last week. And, that story really has, tamped out pretty quickly. But, you know, I think, a lot of consumer if we can get relief on a lot of, like, I’ll say, the transportation issues, diesel fuel, etc., I start to like consumer staples a lot.
Ted Thatcher: I think that we’ve actually seen a lot of potential positive trends in consumer earnings. And so if we can give them relief on the inflation side, I think consumers will continue to spend. You see, retail sales, you know, coming in and, you know, we obviously are going to go into the holiday season and such things.
Caroline Woods: But why staples over discretionary? Because staples are things that we have to buy regardless of how high oil prices are.
Ted Thatcher: Right? I, I don’t think I maybe connected the dots well enough. So the staples specifically, so much of the prices we get when we go to the grocery store, basically about, you know, if we go buy our everyday, you know, items, 30% to 40%, depending on what, you know, explanations you use of the cost of those goods ends up being attributable to transportation costs, which is highly correlated with oil.
Ted Thatcher: So I would, I wouldn’t necessarily disagree. You know, discretionary would certainly be in there as well. But, you know, on the transportation piece specifically, that’s why I mentioned, staples.
Caroline Woods: Okay. You talked about the midterms as well. With November 3rd fast approaching, is there an opportunity investors should be positioning for right now? Should we be making any changes to our portfolio given that it could cause some volatility but ultimately think could mean the market moves higher?
Ted Thatcher: You know, I think that if we’re not careful we end up making decisions out of fear and not, you know, out of patience and taking what the market gives us. Right now, the market is giving us tech growth because the eye trade is sort of I think what the broader market is saying is the only thing that can keep up with the inflation rates and outpace some of this pressure that it’s seeing.
Ted Thatcher: You know, one thing I’ve actually talked a lot about is, hey, we have a ten year U.S. Treasury note at 5%. That is an example, I think, of what the market is giving us. So more than, you know, make any, you know, technical adjustments just because of, you know, an election coming up. I would say, hey, let’s look at the marketplace, let’s say, what is the market giving us?
Ted Thatcher: So whether it’s the names we’ve talked about, whether it’s a little bit here in the, you know, out of the money trade with the RSP example. I can elaborate on the ten year trade. You know, we have so much buying pressure at this level. You know, you have as a buyer, you have, institutional capital pensions have 6% hurdle commitments, and they can get a guaranteed 5% rate backed by the full faith and credit of the US government.
Ted Thatcher: I think that, you know, my personal belief is that we would see a, you know, low four handle, high three handle before we would see a six handle. The smart money on Wall Street. Commercial hedges are very long. The ten year treasury right now. And they are always early and always right. The last time they were this long was back in 2018.
Ted Thatcher: And that basically the preceding 12 months, they did very, very well. And so, I look at those types of signals as well and say, hey again, let’s give what, let’s take what the market’s giving.
Caroline Woods: So ultimately if it’s going to tick lower is now the time to buy bonds.
Ted Thatcher: You know I think that I very much I like a ten year Treasury buy here. It’s one of the things I have been talking a lot about in general outside of, you know, maybe the stock picks and trades and things like that. I think that the investors, if you look back a couple of years from now, will be quite pleased with owning a, again, a 5% guaranteed rate.
Caroline Woods: How much of your portfolio would be in bonds right now, or is it ones right now?
Ted Thatcher: When we I mean, I’m very much when we manage portfolios, we do so on an individual basis, family by family. And so I think that, you know, if you’re trying to say, hey, I want to lower my risk, I need to produce a certain amount of income, maybe for my retirement. You know, you have to start to understand what that person needs before you can attribute a certain amount of money to it, but, you know.
Ted Thatcher: Sheesh. If you need, if you have cash on the side and it’s not working hard for you, you should be in those types of trades, in my opinion, especially for that short term capital.
Caroline Woods: Okay. So bonds over cash.
Ted Thatcher: Your bonds over.
Caroline Woods: Cash. All right. I think it’s perfect time to to segue into our rapid fire round of this. Are that your first time playing. So quick questions quick answers. No hedging. All right. Are you ready? All right. Here we go. What happens first S&P 500 hits a record high or falls 10%.
Ted Thatcher: Record high.
Caroline Woods: Better opportunity right now. Big tech or the rest of the S&P. Big tech next big market move broadening rally or more concentration.
Ted Thatcher: I think we get concentration before the broad rally.
Caroline Woods: Oil by year end higher or lower than 100.
Ted Thatcher: I think we start to see it turn. I think it will go lower than 100. That’s what I’m praying for.
Caroline Woods: Bigger risks to stocks rising yields or disappointing earnings.
Ted Thatcher: I think higher yields I think higher yields.
Caroline Woods: Are we buying opportunity or trap?
Ted Thatcher: I think it’s a buying opportunity. If you’re a believer in the NIO clouds.
Caroline Woods: I stocks buy before earnings or wait for an earnings pullback. Welcome.
Ted Thatcher: I would wait for the earnings pullback. The theme has been if you missed by an inch you miss by a mile. Usually we see a quick recovery if they do miss a little bit. But I would say I would say that’s our.
Caroline Woods: Earnings pullback because the bar is too high or earnings pullback because these companies could disappoint.
Ted Thatcher: I think that disappoint. You’d have to define I think.
Caroline Woods: For I.
Ted Thatcher: Again I would say mismanagement I think because they would disappoint okay. Sorry not I had too much on that.
Caroline Woods: I asked an open ended question. They’re bigger I winner in 2027. Chips are software.
Ted Thatcher: I think chips still the.
Caroline Woods: Software name you would buy here. That’s not Microsoft.
Ted Thatcher: It’s not Microsoft.
Caroline Woods: Everyone tries to say Microsoft.
Ted Thatcher: Everyone tries to say,
Ted Thatcher: I like I like workday.
Caroline Woods: Okay, S&P 500, equal weight or market cap. Wait.
Ted Thatcher: A short term I would say market cap because of our conversation. But obviously I like the equal weight for the reasons I show.
Caroline Woods: Next 12 months RSP or Nvidia.
Ted Thatcher: Nvidia.
Caroline Woods: Post mid term rally likely or unlikely.
Ted Thatcher: Rally is quite likely.
Caroline Woods: $10,000 today. Invest it all or keep some cash.
Ted Thatcher: Oh, I think you should always have a little bit of cash. Okay.
Caroline Woods: The Meg seven stock with the most upside is you can buy it.
Ted Thatcher: Right now I would say. Yeah I really like alphabet. All right. Sorry. Go ahead Isaac, to say I think that alphabet is on the list of companies that I think has the potential to be a $10 trillion company in the next 3 to 5 years.
Caroline Woods: 10 trillion in the next 3 to 5. The big tech stock you’d avoid right now is.
Ted Thatcher: Something I am cautious around. Tesla.
Caroline Woods: The most overlooked opportunity in the current market is.
Ted Thatcher: It’s overlooked.
Ted Thatcher: I actually think it’s the ten year okay.
Caroline Woods: And the biggest threat to the bull market is.
Ted Thatcher: Earnings misses.
Caroline Woods: All right. We’ll leave it there. Thanks so much for flying along. Thanks for your checks and your perspective.
Ted Thatcher: Sorry if I hedge too much. Everybody I know I’m going to.
Caroline Woods: Get I’ll get much better.
Ted Thatcher: Yeah.
Caroline Woods: That’s our founder and president of Great Lake Wealth Management. If you enjoyed this street talk, check out my conversation with Julian Kosky, who reveals five stocks his investment models say to buy in five to avoid right now.
