Christine let me start with you. What we saw with the equities as it was a basically a good week for equities. They've clawed
back what they lost in September basically. What's driving it. About earnings right. We went into the third quarter with a lot
of fears and they have not been realized that thus far. In fact what we've seen is better earnings positive earnings surprise
than the average that we've seen. And certainly it's been helped by some high profile earnings reports that have driven up the
averages for the overall market. But this is certainly a good environment thus far. Now only 23 percent of companies in the
S&P 500 reported thus far. But but it's been a good good season so far. So Rick what about it. I mean we have seen
outperformance thus far at least about a quarter of the way in on the earnings. Are there any clouds on the horizon. Let me ask
what inflation specifically. Because when those break even spiked up around Thursday late Thursday into Friday the concern
took a hit. Should we be worried about what's going on with the inflation prospects. So I mean I think it's you know I think
inflation is it is a tricky concept because you know people focus on one number. There are a number of crosscurrents in the
labor dynamics are real. And it's the hardest job market I've ever seen in history. And it's not going away anytime soon.
There are not enough people. When you look at the amount of hiring going on from Amazon to Wall March from the biotech
companies technology generally. So labor is going to continue to accelerate. The cost of labor is going to continue to accelerate
and then energy some of the commodity infrastructure it's hard to get the Catholics and to rebuild that in a short period of
time. So some of those stresses are real and the markets are going to focus on it. And then how the Fed addresses that I
think is going to be important agenda in the year which you're Powell said. And part of why you're seeing the yield curve do
it. It's do what it's doing and part of why inflation came off the break evens came off a bit today is you've got a Fed. And by
the way not just the Fed the Bank of England and some of the emerging market central banks that are going to try to address
it. So it's worth keeping an eye on. It's definitely one of the risks that are out there. I think a lot of it David is the fact
that it's coming from supply more than anything else today which is a really big deal. It's it's inventory draw downs and the
amount of supply not being ample enough for a lot of products. It's driving price pressures higher. So Christine what about
that supply problem. We hear about it every single day and one industry or the other. Are we seeing it show up in their
earnings at all at this point. Is it again a cloud on the horizon for the future earnings of some of these companies. Well
it's certainly showing up but mostly it's about worrying about the fourth quarter and beyond. And so already what little
guidance we've gotten for the fourth quarter is relatively negative. And I think that's likely to continue. Supply chain
disruptions should be expected to last for a while. I mean we've gone through an extraordinary economic disruption. This pandemic
has caused all kinds of issues. And they're not going to be worked out overnight. So we have to expect that this will
persist for four months. So what about the pandemic. I mean we can't get around the pandemic. It is the looming issue out
there. But is it an upside risk or downside risk for corporations and corporate earnings at this point in markets for
that matter. So you know I would say first of all you know the anticipation is that we're largely on the back side in terms of
the real stress around around Covid. You know hopefully that is the case. There is still you know in areas like transportation
leisure hospitality there is still some concerns about how quickly that people are willing to come back. But I would say
generally that we around the back side of it you're seeing that you know the economy by the way that operated extremely well
through it and that is flexible enough to adapt. So it is clearly one of the big risks. I think you said earlier in the
show China's certainly a big risk. And so there are definitely some things to keep your eye on. That's one of them. But I think
at the end of the day I think we're seeing an economy that's flexible adaptive enough with enough ingenuity and innovation
that that economy generally will work through it today assuming it's not a significant outbreak. Christina Rick took us right to
China which is something I did want to ask about because we were surprised delightfully surprised that ever until he's made that
one dollar bond payment. They were wondering about that at the same time. We did see housing prices and try to come off for the
first time in six years. How big a risk is China or is there an upside surprise potentially there.
I think there is upside potential. What we keep hearing over and over again this mantra that China is on investable says to me
that there are some opportunities there that there is some mispricing going on and that if one has a long enough time
horizon if one is willing to wait this out they could be very pleasantly surprised with China. Clearly there are a lot of
reforms going on but I think we have a better handle on the areas of focused by China right now and that that certainly
helps. And clearly what China has done specifically with the property market has been somewhat calculating. When we think
about Lehman and try to compare ever grant to Lehman I think it's incorrect because Lehman is a situation where regulators
were asleep at the wheel. This time we had regulators focused on improving the situation in the property market and creating
casualties like ever grant. So Rick I think it's fair to say you might well say you can't get around China if you're an investor
today. You've got to deal with it one way or the other. Right now do you think the risks in China are greater today than they
were a year ago. Less or about the same. So I'm Atlas and I think the uncertainty is higher. I mean particularly you've got
an economy that's decelerating pretty quickly. And you know our sense is that most of that is temporary through the third and
maybe into the into the fourth quarter. So anything that is higher the regulatory dynamics that have played out you know the
uncertainty around actually seen it gaming you've seen an education you know in some of those and the property sector some
of the reaction function has been unpredictable. And so you know do is risk gone up. I think so. And I think listen I think
general platitudes of I'm going to invest in or not invest in it or particularly not invest. And I think as an extreme I think
it's Christine Assad. You've got to think about risks award how much how much and scale your positions appropriately and where
do you have upside in some areas. It's just not worth taking the risk. And in China today. But I think I think you know having
some patients where there's convexity upside listen I think that I think given the number the other 26 percent of the unicorns in
the world you know real technologies developing in China to be able to tap into some of that wisdom patience and some staying
power I think make some sense even though we're at what is probably a riskier period of time for investing in China because
they. One last one to you. So risk back in the United States and sell it. Regulatory risk or tax risk here at the end of the week
it appears maybe they're being able to figure out how to pay for all those things. They want to wash it without increasing the
corporate rate instead having something called a billionaires tax. Not sure what that is. Other markets constrained by the
threat of that tax. And therefore might there be upside if it goes away.
I think there is the potential for upside. I think at least some of this has already been priced in. There has been an assumption
that we're going to see taxes go up and now we're being presented with such a level of congressional dysfunction that
investors and corporations might be able to have their cake and eat it too.
Rick do you agree with that. I mean I think there's a number of things you've got
you've got to focus on today around around some of these dynamics taking place. And I say I think each one of the meets
that needs to be taken independently because there's a lot of idiosyncratic dynamics there today. Chris let me ask one more
maybe an unfair one. What about these facts. I mean we had a flurry of activity around for President Trump's spec. Is this
really just market froth. Is there something deeper there. Well it's really interesting that you ask that because not only
did we see sparks really have a very a week of wild popularity but we also saw the same for crypto currencies. So I think it's
certainly emblematic of some froth out there. But I also think it's clear that investors are looking for returns and they're
looking for risk assets. And that suggests to me that stocks have longer to run.