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A single best idea, the single best idea today. The conversation that Jonathan Farroll had with an exiting Stephen Myron was absolutely extraordinary. I can't say enough about the debate that Governor Myron has engendered over should central banks have a policy prescription and get out front versus wait to see what the data is As a broader sense, we thank Nawong for some choice comments on that interview. Really really interesting interview that John Farrell had with Governor Myron.
A single best idea, Well, you've got to go to Sema Shaw coming off that interview talking about central banks from Principal Asset Management.
Miss Shaw, there's a line in the sounder, you know, we don't get to a point where they so much disagreement. That actually is very difficult for markets to get to a point where they know the kind of direction that central banks are moving in. But at the same time having that active debate, I think it's important for the vested at this time we need to try and think through, for example, what is the impact of population growth, the impact of AI. Is it going to be disinflation or
is it going to be inflationary. These are really really key questions that we ourselves are grappling with. They're trying to get an idea and understanding of how the federals of the Bank of England, et cetera are considering it. I think is important as long as it doesn't spill into significantly greater volatility, which makes it difficult to understand how your portfolio decisions are going to be impacted.
Smash Principal Asset Management had a real emerging markets bent today. Wonderful was Paul Quincy. He's the JP Morgan driving all of their EM equity coverage, and you know, we were talking about like what do you buy in emerging markets? You buy the concrete company, you buy the telephone company. Well know, you can broaden out from that. But every once in a while, something falls off a cliff, and I would know, I've never been in a Jolly Bee.
It's a Filipino fast food restaurant, but it's fallen off a cliff. Pat Quincy of JP Morgan and Jolly Be There's.
Always going to be a couple of jolly Be's in any portfolio, right. That's part of the that's part of the life as an equity investor. I mean, I think where we would be. One of the big things we're looking out for, obviously, is when you see this level of enthusiasm we've got for semiconductors at the moment, are we setting ourselves up for a giant Jolly be type experience? And the thing so we when you get a big momentum move like this, we think there's three things to
watch for. Stretch valuations, rising volatility, and peaking earnings estimates. So far valuations sort of mixed. Price to earnings low actually, but anything else high, price to sales, price to book. The companies are making so much money they're earning the valuations. Most of the memory of stocks are still on single digit multiples. Volatility, yes, going up an examentum.
So strong bottle it. That's all I can say for those of you following the market. What you just heard there out of the gentleman from JP Morgan in the University of Durham, just listen to every word he said on those three points. Closing out that Jolly B thought I would really focus on margins in the first and second derivatives of margin distress or excellence here forward, on podcasts or on Apple, We're on Spotify, on YouTube, podcasts, single best Idea,