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Single best idea, my theme into the end of the year and probably dazzled into twenty twenty five. Is this great bull market and make it. Not making an opinion on buy Hoole sell, but I'm just saying we're observing, whether you're in the game or not, this great bull market.
The booking team has been phenomenal a by getting in a cross section of opinions, and today was glorious of equity strategist Jason Trenner joins us from Strtigius Research and Gino Martin Adams joined us on short notice with reaffirming our earning's growth for next year. But you really get some nuances when you listen to four five six frontline
equity strategists. I know from a couple of days ago, Brian Belski of Demo Capital Market saying, look, everybody gets it's a cyclical bull market, but he feels there's a structural underpinning to it. Of course, he's been a bull and on board. No one I know has been more of a bull on board in Benjamin Ladler. He was at HSBC and on Christmas Eve of two thousand, I believe eighteen. He said you must climb on board this
cratered market. Nobody caught this great bull market like Ben laydlor here, Ben Ladler of Bradesco BBI forward.
We need to treat it with some respect. Momentum is the most powerful factor historically, you know, in markets. We've seen this extension of this US economic and market exceptionalism. We've seen wins appeared a very strong seasonality. So I think we need to respect it. But again I wouldn't and I wouldn't fear it because I do think it's going to be fundamentally backed up by the earnings continuing to come through and deliver. If that wasn't the case,
I'd be, you know, pretty worried. He because valuations are you know, evaluations are high. We've repriced down to three fat cuts. But I think, you know the fundamentals of this full market, of the earnings are going to keep delivering.
Ben Laylor constructive and maybe very clear. The free cashlow story for the Mags seven are tangible. Another equity voice, Joiner is today Alisha Levine at B and Y. All of these people are different and you get so you learn their nuances, their academic pedigree where they've worked all the different theories that are out there. No one has a mathematical construct in the equity markets like Alisha Levine. Maybe the only one in fixed income close is Jim
Caron over at Morgan Stanley with his physics background. Alisha Levine at B and Y is bulletproof on the math the Euclidean space, the three dimensional space of equity analysis.
Here she is the profit is better. Let's go back to the late nineties. Starting in the late nineties, you saw a steady increase in the operating margins of the SMP, which created a higher multiple regime for the SMP. If you just go back in time and you get your average of sixteen times forward earnings, well, your margins were also nine to ten percent. Now we're looking at thirteen and a half percent for next year, and that's because it's being driven by the cash flow of tech, and
so the companies are healthier. It's not just earnings, it's free cash flow. Margins are better, it's keeping the multiples higher. You've got a healthier market, and the pricing of tech compared to the rest of the market on a relative basis is actually lower than it was in twenty twenty one, nineteen ninety nine, and other periods where there was a tech boom or you know, a technology change where the
market got excited about a technology change. So it's relatively less expensive given free cash flow, margins and earnings.
Alicia Levine of BNY We'll continue this trend into the new year, looking at the equity markets, all different opinions, quite frankly, a set of people rather cautious, not gloomy, but just rather cautious in this great bull market. On your morning commute on Apple car Play, got the numbers yesterday for Apple car Play. Thank you so much for your commitment to that new technology, Android Auto as well.
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