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The single best idea and just today it was a great day equity bond equity. Lisa Shallett was on fire with a hugely aggressive note from Morgan Stanley that like, you know what, things are pretty good, get on board. I headlined out this morning in Vidia committing to invest
up to ten billion and anthropic. I don't know what to do with all this, but we're really listening to some of these year end summaries as they go to their outlooks, people like Lisa Shallatt at Morgan Stanley, Stuart Kaiser on fire this morning with City Group much more in the trenches, the dynamics of the market.
Stuart Kaiser on the moment at hand.
Yeah, I think for Nvidia, you're paying for the forward grounds. I'll look for Walmart, you're almost paying for execution. Like these guys, you should have been masters at executing their supply chain, their inventory management. You now have, you know what, We're previously middle income spenders kind of trading down into Walmart stores. So that's why Walmart's so important this week,
because they are so good at execution. They are such a good lens into the broad based us consumer that if they echo what we've heard from from home Depot, from Costco, from Chipotle, from a Riley automobile home, you know, if they echo that, I don't think the market's going to take it well. Of all the new information we've gotten in the last month, to me, the weaker consumer earnings is probably the most, the newest and the most concerning of all that information.
Steric Kaiser, let me explain this. And the Bloomberg dees screen, the description screen world famous. I mean to me, the YA screen, the yield analysis screen was what made Bloomberg Bloomberg. But the DS screens an important effort as well. Many
screens of the description of a given company. We report two price earnings ratios, the present one looking back twelve months, and then we do a calculation of the expected PE looking at different algorithms in that and Nvidia is growing like crazy, so their present PE is fifty ish and their expected PE is forty ish. Walmart is ginormous. We know that it's present PE is forty ish and its
future PE is forty ish. So there's a big, big distinction wrapped around those hyperscalers, those tech moment and their growth is well over in bonds. I've never seen this, folks, I'm saying this in umpteen decades, I have never seen a more optimistic note on fixed income than what I saw from Tony Cressenzi today at Pimco. Tony Cressenzi, I'm being brave in fixed income.
Five to seven percent is quite attractive for double A minus double minds according to Standard and Poison Moodies indicatese you have a ninety nine point nine eight percent chance of getting your money back. Now if you're if you believe that those yields are unattractive, you're thinking, then that's because the Federal Reserve will fail. It will fail and its efforts on price stability. It may continue to fail in its efforts to achieve its two percent price target. Sure,
but that doesn't matter historically. What matters historically you can go back to the green span, vulgar days, former Fed chairs. Price stabilities are matter somewhere in the mid twos is what defines it. We have all kinds of data to show that markets are happy when prices are simply a rent stable in a normal in a relatively low zone called two point three four five six.
Tony Cscenzi of PIMCO.
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