lets go back to this conversation about how you structure a portfolio in this environment and weve been having this whole debate about sort of the 60 40 and what constitutes 40 these days or 30 or whatever you want to do and what role if at all sovereign debt even plays in that portfolio allocation thats a thats a smart question to be asking and i think ive spoken before on this show that we have to recognize and acknowledge the bond markets been forever changed you know with all of the liquidity and stimulus and government intervention so the way that we view the bond market is really an airbag in a portfolio not necessarily an asset class that can sort of you know sit and collect dividend or interest in an income off the bond portfolio i think though that that makes shines a spotlight on the stock on the stock market and so what were advising clients right right now to do is to believe the fed theyve been telling us that theyre going to air on the side of inflation thats exactly what theyre doing and so what we want to be doing is shifting portfolios more towards value oriented investing looking at international and emerging markets so we get better relative value taking profits and gains in the tech sector in anticipation dont get greedy theyre huge gains and then more importantly recognizing if youre an etf investor that 16 percent of the stocks right now are leading this market higher this is not a broad based participation as we hit new highs so weve got to break apart the component parts of the market and start to favor those sectors that are going to benefit from inflation that puts you in financials you know constrict communication services puts you in materials industrials and health care and so nuanced the portfolio from that perspective is there anything your clients are starting to do to prepare for any hiccups the market might face into the end of the year into next year well theyre following our advice so that would be step number one and i think in doing that going back to remains question is that we have to move away from these traditional knows notions of old paradigm thinking about what a traditional risk managed portfolio looks like because the bond market is not a riskless place its actually carrying the weight of policy volatility and therefore i think more uncertainty and so we go back to talking to clients if youre willing to hold a five year bond why wouldnt you own a portfolio of stocks that are innovating and endure the volatility endure it and then well build out the portfolio from a stock standpoint to meet or match a 10 year treasury in terms of the income stream in a rising dividend environment that will likely i think over the next five years outpace the ability for four bond holders to earn greater income in the bond market youre better off in the stock market i mean sherry im sure youve exhausted by the ongoing question of it but at what point does crypto into peoples portfolio at the moment were talking about as some sort of inflation hedge is it yeah look i think that whats interesting about crypto and the stock market itself is that i think its sound clips like three trillion dollars and if you can imagine even with that new sort of asset class amazons yet undetermined you know even undetermined look at where the markets are i mean its that liquidity punched out of crypto just in bitcoin and came back into the market and thats how strong this market is right now even without that and so i think that crypto is helping people understand an alternative way of thinking and being and transacting in a digital mobile business and consumer environment and i think that right now that discussion is immensely valuable and that you can expose yourself to those themes within traditional stock settings in a way that youre going to benefit from that technology all right one conversation right now with jerry paul private wealth adviser over at morgan stanley private wealth management about five minutes to the close i want to get real quickly here to our stock of the hour it is dillards here on the day the shares right now at a record high the company reported those third quarter results it came in well above what the street was looking for and given a little bit of light here for some of these department store names particularly a loss theyre going to be reporting next week its pretty much across the board when it comes to some of these consumer names target home depot lowes tjx macys kohls ross stores all reporting next week slip up the board here because a lot of the breakdown here is now about consumer spending and how it feeds here into the economy and more importantly how it feeds into the markets here you can see the white and yellow lines here thats basically the interplay right now between whats been going on with online shopping and the yellow line and the white line is warehouse stores that blue line turquoise at the bottom here thats department stores its an interesting mix here sherry i want to bring you back into this conversation not so much specifically about these stocks or these names more importantly about how we spend money as consumers and how investors i guess can find benefits or find some opportunities in that trend yeah well whats amazing about being in a consumer based capitalist economy is that enough people have to believe that somethings true to make it true so if you feel like the economy is good whether the the economists think that its not and then its going to be good in terms of earnings were seeing that data right now that a third of holiday shoppers are planning on more money even though they may feel like their financial balance sheet is deteriorating and so when you put those two things together then that would put you into sort of a bump in the market between now and year end as a short term trend to answer your question longer term the way that we consume a digital economy is going to be the most transformative thing that weve seen since the late 90s and the advent of the internet right and so that is a an industrial revolution were right in the middle of it it got accelerated during the pandemic and so from a consumption base that puts you back into financials in terms of how people are consuming media how theyre banking how theyre shopping how theyre buying and all of that is happening very quickly