Michael Cembalest

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?

There aren't too many places with tons of liquidity, right? And you named the ones that we need to be talking about. There's not enough liquidity in the Bovespa and places like that to really move a lot of money. So...

There aren't too many places with tons of liquidity, right? And you named the ones that we need to be talking about. There's not enough liquidity in the Bovespa and places like that to really move a lot of money. So...

There aren't too many places with tons of liquidity, right? And you named the ones that we need to be talking about. There's not enough liquidity in the Bovespa and places like that to really move a lot of money. So...

Japan's interesting because for the first time in like 30 years, Japan is really focused on shareholder value, which is some crazy number, like 50 or 60% of the Japanese market trades below one times book.

Japan's interesting because for the first time in like 30 years, Japan is really focused on shareholder value, which is some crazy number, like 50 or 60% of the Japanese market trades below one times book.

Japan's interesting because for the first time in like 30 years, Japan is really focused on shareholder value, which is some crazy number, like 50 or 60% of the Japanese market trades below one times book.

The number in the US is 4% or something. They've now said, okay, you have to do special dividends, you have to do spinoffs, and if you don't take steps to reverse that, you could be delisted. I don't think they're serious about that, but they're moving a lot of Japanese companies to do things they haven't done in a while.

The number in the US is 4% or something. They've now said, okay, you have to do special dividends, you have to do spinoffs, and if you don't take steps to reverse that, you could be delisted. I don't think they're serious about that, but they're moving a lot of Japanese companies to do things they haven't done in a while.

The number in the US is 4% or something. They've now said, okay, you have to do special dividends, you have to do spinoffs, and if you don't take steps to reverse that, you could be delisted. I don't think they're serious about that, but they're moving a lot of Japanese companies to do things they haven't done in a while.

One of my really informal indicators is how many colleagues of mine have been asked to normally against their will, to relocate to Japan to work on corporate finance, you know, spinoffs and M&A activity. And that number for the first time in like 30 years is starting to go up.

One of my really informal indicators is how many colleagues of mine have been asked to normally against their will, to relocate to Japan to work on corporate finance, you know, spinoffs and M&A activity. And that number for the first time in like 30 years is starting to go up.

One of my really informal indicators is how many colleagues of mine have been asked to normally against their will, to relocate to Japan to work on corporate finance, you know, spinoffs and M&A activity. And that number for the first time in like 30 years is starting to go up.

So that's a sign that there are things going on in the corporate sector which are focused on shareholder value rather than the other constituencies that the Japanese equity market is usually focused on.

So that's a sign that there are things going on in the corporate sector which are focused on shareholder value rather than the other constituencies that the Japanese equity market is usually focused on.

So that's a sign that there are things going on in the corporate sector which are focused on shareholder value rather than the other constituencies that the Japanese equity market is usually focused on.

It's hard because a lot of what we do as investors is look at prior cycles, prior examples, just to measure elasticities. And they're now putting in what looks like the largest tariff hike on record in a faster time than the Smoot-Hawley tariffs were applied almost 100 years ago. So we're trying to figure it out. As you've all read, the port traffic has collapsed, freight rates have collapsed.

It's hard because a lot of what we do as investors is look at prior cycles, prior examples, just to measure elasticities. And they're now putting in what looks like the largest tariff hike on record in a faster time than the Smoot-Hawley tariffs were applied almost 100 years ago. So we're trying to figure it out. As you've all read, the port traffic has collapsed, freight rates have collapsed.

It's hard because a lot of what we do as investors is look at prior cycles, prior examples, just to measure elasticities. And they're now putting in what looks like the largest tariff hike on record in a faster time than the Smoot-Hawley tariffs were applied almost 100 years ago. So we're trying to figure it out. As you've all read, the port traffic has collapsed, freight rates have collapsed.

We're trying to figure out what happens in a world where there's a gargantuan, whether it's 50% or 100%, doesn't matter. You have a gargantuan reciprocal tariff rate on China, 10% on a lot of other countries, plus various product-specific tariffs they haven't even announced yet. Are people going to stop importing?