Economic Insights - Joseph Stiglitz, a Nobel Prize-winning economist, discussed the poor state of the economy and the likelihood of further deterioration, challenging optimistic views on inflation and tariffs [1] - Stiglitz emphasized that while inflation was declining post-pandemic, the decline slowed after President Trump's arrival, indicating that tariffs have a delayed effect on prices [1] Market Performance - Richard Bernstein, CEO of Richard Bernstein Advisors, noted a healthy broadening in the market since late October, attributing it to strong economic performance with nominal GDP exceeding 8% last quarter, a level not seen since 2006 [2] - Bernstein expressed surprise at the market's narrowness despite strong growth, but observed that investors are beginning to recognize the strength and breadth of corporate profits [2] Company Performance: NetScout Systems Inc. - NetScout Systems Inc. reported FQ3 2026 revenue of $250.7 million, a slight decline of 0.53% year-over-year, but exceeded Street estimates by $16.99 million, with diluted EPS increasing by 6.4% to $1.00 [7][8] - The company expects FY2026 revenue between $835 million and $870 million, with non-GAAP EPS projected between $2.37 and $2.45, driven by ~$15 million in deal pull-ins [8] - NetScout's cybersecurity segment grew by 9% over the first nine months of the year, and the company is increasingly integrating its Smart Data for AI-driven use cases [9] Company Performance: Tactile Systems Technology Inc. - Tactile Systems Technology reported a 12% increase in total revenue to $329.5 million for 2025, ending the year with a strong cash position of $83.4 million [10] - The company acquired Lymphotec to enhance patient surveillance for lymphedema patients and is investing in a new CRM system and expanded sales headcount to drive productivity [11] - Tactile issued a balanced outlook for 2026, projecting revenue growth of 8% to 11%, while acknowledging potential short-term headwinds from new Medicare prior authorization requirements [12]

Market Overview - The market has been broadening since the end of October, which is seen as a healthy development for the economy [2][3] - The nominal GDP for the last quarter was over 8%, a level not seen in the U.S. since 2006, indicating strong economic performance [2][3] Investment Opportunities - There are many companies in the U.S. and globally that are growing as fast or faster than the "Magnificent Seven" tech companies, often at lower valuations [5][6] - Non-U.S. investments are recommended, as U.S. investors typically have less than 10% exposure to non-U.S. markets, despite these markets representing 35-40% of the global equity market [9] Economic Indicators - U.S. earnings growth is leveling off, while profit cycles in non-U.S. markets are on the rise, suggesting opportunities outside the U.S. [8] - The potential for the dollar to weaken is acknowledged, but it is not expected to significantly impact investment returns, especially if the Fed continues a rate-cutting course [12][14] Macro Narratives - Concerns about dollar debasement are considered somewhat exaggerated, with various strategies available to mitigate risks, including investing in non-U.S. stocks [14][15] - The liquidity-driven speculation in markets, particularly around the "Magnificent Seven," may be affected if the Fed adopts a more hawkish stance [16]

Let's bring in Richard Bernstein. He's the CEO and chief investment officer at Richard Bernstein Adviserss. Rich, I can't wait to hear where are you value hunting.What are you steering clear of. I I I have to imagine you're you're loving the cyclical story here. Why do you think the market's doing so well today.What did you make of the Amazon quarter. So many questions. >> So, so I don't know where to start, Kell.I mean, um, I think, um, look, I think the broadening of the market, we've argued for some time ...

Economic Data and Market Sentiment - The current market operates in a data-scarce environment, making it challenging to gauge fixed income and yield movements during the government shutdown [1] - Corporate data is deemed more reliable than survey data, which often reflects market sentiment rather than actual conditions [2][3] Labor Market and Productivity - Labor data is identified as the most critical information for the next five years, with expectations that productivity and technological advancements will alleviate wage pressures and inflation [7] - The economy is projected to achieve a real GDP growth of 3.8% and nominal GDP growth exceeding 5%, indicating strong corporate earnings without a proportional increase in infrastructure needs [8] Business Efficiency and Scale - Companies are focusing on improving productivity through better inventory management and logistics, which is essential for maintaining higher margins and lower infrastructure costs [9] - There is a trend towards achieving scale in operations, which allows companies to run more efficiently while also supporting employment levels [9][10]