Hey, it's Kramer, and this is my morning take on the market from today's CBC Investing Club

morning meeting.

We had a rough one.

We did get a CPI number that was too high.

Now, I understand these are all against the expectations.

Jeff and I felt that the economy is very strong, and we would have a hot number.

So we kind of are troubled by the people who got it wrong and are therefore

selling. They are, quite frankly, ill-advised because they're unaware. And Jeff, what I see when

when the people who are unaware are in control of both the Mike and also the futures, what they do is they flail wildly.

And I see a lot of wild flailing. Yeah, I mean, look, I think if you just look at the day, though, yeah, it was down more than 1% very early on, and it's still early. But look, I'm looking at Invidia, doing a little bit better today. A lot of the stocks that were down yesterday, big year-to-date winners, momentum stocks are actually holding in okay. Well, that's good. They've corrected ahead. And obviously, Nvidia is not hostage to the short rates. I mean, people should think about whether the companies are hostage to short rates or long rates. But the problem, Jeff, is that if you don't know what Nvidia is, how would you know whether it's hostage or not? No, of course. I mean, you could look at today what's down the most today. Utilities, real estate, bad balancing companies. Those are going to be... Warner Brothers Discovery. Those are going to be hit the hardest when rates pop. You got the 10 year at 4.5. Those are the companies that are going to struggle with higher rates because they would stupidly and borrowed a lot of money. Right. But just because the 10 year goes from 4-4 to 4-5, it doesn't mean Microsoft is slowing down their pace of data center build-out. Although you can have sell-offs. I mean, I mentioned earlier this morning, the Caterpillar just is up 25%. I happen to think caterpillar has deccyclicalized, that's a Jim Humpleby term, but it's also up 25%. So, you know, I mean, you can see people take the profits. It's also a long day. No, for sure. I mean, look, we had a 1% pullback last Thursday, right? Things were looking a little bit hairy. And then the jobs report came out, and we had a nice rally. So, I mean, look, I think the market is, maybe it's struggling right now to find some footing. We do have earnings coming up. That's obviously going to be very important. The biggest, you know, driver of stocks, I would say is earnings. Jamie Diamond's on record saying, look, it could be two, it could be 8%.

Yeah.

Well, I mean, if you're Jamie, you come out with the eight. Look, Jamie is a person who is, well, let's talk about him for a second. I think that's like my age. I think that's like the risk manager in him, right? He's saying, we have this wide range. Jamie is saying, I'm not going to blow this bank up. We're not blowing this bank up. And that turned out to be the greatest call. That's why he stole First Republic. He's very calm. My friends who work with him are always amazed that he's just a thoughtful risk manager. Absolutely. And you have J.P. Morgan Friday, Wells Fargo Friday. Yeah. Before that, STZ, consultation brands tomorrow.

Let Wells sell off $3 and then you buy it.

Charlie's got a great handle.

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