Michael Cembalest

You know, in the banking system, for example, the banks would like to see the supplementary leverage ratio no longer have to include capital held against treasuries. There's millions of examples of like that in every industry. And that's what the CEOs would like to see. I don't know how much of it they're going to get.

You know, in the banking system, for example, the banks would like to see the supplementary leverage ratio no longer have to include capital held against treasuries. There's millions of examples of like that in every industry. And that's what the CEOs would like to see. I don't know how much of it they're going to get.

You know, in the banking system, for example, the banks would like to see the supplementary leverage ratio no longer have to include capital held against treasuries. There's millions of examples of like that in every industry. And that's what the CEOs would like to see. I don't know how much of it they're going to get.

I don't know how much of it is going to be based on politicking rather than kind of policymaking. But that's probably the one thing that they're hanging on to right now desperately.

I don't know how much of it is going to be based on politicking rather than kind of policymaking. But that's probably the one thing that they're hanging on to right now desperately.

I don't know how much of it is going to be based on politicking rather than kind of policymaking. But that's probably the one thing that they're hanging on to right now desperately.

There's this range of fundamentals and valuation. Meaning the lower the valuations are, the less time I'm practically going to spend on the fundamentals. If you show me a market that's trading at a 5 PE, I don't need the fundamentals to look great. And I'm getting compensated for how bad they might be. So...

There's this range of fundamentals and valuation. Meaning the lower the valuations are, the less time I'm practically going to spend on the fundamentals. If you show me a market that's trading at a 5 PE, I don't need the fundamentals to look great. And I'm getting compensated for how bad they might be. So...

There's this range of fundamentals and valuation. Meaning the lower the valuations are, the less time I'm practically going to spend on the fundamentals. If you show me a market that's trading at a 5 PE, I don't need the fundamentals to look great. And I'm getting compensated for how bad they might be. So...

Before last fall's Chinese stimulus announcement, the country was trading at about a 9.5 PE. You were getting a lot of compensation for all the uncertainty and the mess going on there. China then rallied a bit. So if we take that frame of reference, Europe looks okay. The fundamentals maybe get a little better with more fiscal spending in Germany, but

Before last fall's Chinese stimulus announcement, the country was trading at about a 9.5 PE. You were getting a lot of compensation for all the uncertainty and the mess going on there. China then rallied a bit. So if we take that frame of reference, Europe looks okay. The fundamentals maybe get a little better with more fiscal spending in Germany, but

Before last fall's Chinese stimulus announcement, the country was trading at about a 9.5 PE. You were getting a lot of compensation for all the uncertainty and the mess going on there. China then rallied a bit. So if we take that frame of reference, Europe looks okay. The fundamentals maybe get a little better with more fiscal spending in Germany, but

You still have a lot of issues around profitability of European companies. They've now introduced a carbon border adjustment tax mechanism that makes it more expensive. Energy prices, broadly defining them, are twice as high as they are in the U.S., maybe two and a half times high. And so there are parts of the U.K. and Germany that are deindustrializing. They don't have a tech sector.

You still have a lot of issues around profitability of European companies. They've now introduced a carbon border adjustment tax mechanism that makes it more expensive. Energy prices, broadly defining them, are twice as high as they are in the U.S., maybe two and a half times high. And so there are parts of the U.K. and Germany that are deindustrializing. They don't have a tech sector.

You still have a lot of issues around profitability of European companies. They've now introduced a carbon border adjustment tax mechanism that makes it more expensive. Energy prices, broadly defining them, are twice as high as they are in the U.S., maybe two and a half times high. And so there are parts of the U.K. and Germany that are deindustrializing. They don't have a tech sector.

That's one of the reasons for the U.S. outperformance versus Europe is their tech sector is minimal, and that's why they're constantly talking about service sector tariffs, Pillar 2 arrangements, and things like that, because they want to tax the U.S. big tech companies because they don't really have some of their own. So Europe's a value market, right?

That's one of the reasons for the U.S. outperformance versus Europe is their tech sector is minimal, and that's why they're constantly talking about service sector tariffs, Pillar 2 arrangements, and things like that, because they want to tax the U.S. big tech companies because they don't really have some of their own. So Europe's a value market, right?

That's one of the reasons for the U.S. outperformance versus Europe is their tech sector is minimal, and that's why they're constantly talking about service sector tariffs, Pillar 2 arrangements, and things like that, because they want to tax the U.S. big tech companies because they don't really have some of their own. So Europe's a value market, right?

Energy, banking, a little bit of health, you know, large cap pharma and stuff like that. And so there are some good companies that are 3% to 5% dividends, pretty consistent global platform companies that we own some. But they're not going to kind of take off and give you tech or biotech-like performance. Yeah. Japan is the one that's interesting to me, right?

Energy, banking, a little bit of health, you know, large cap pharma and stuff like that. And so there are some good companies that are 3% to 5% dividends, pretty consistent global platform companies that we own some. But they're not going to kind of take off and give you tech or biotech-like performance. Yeah. Japan is the one that's interesting to me, right?