i dont what do you id like 292 ninety two billion dollars in assets under management for your clients im a little above that right now youre one of those clients asking you right now when it comes to exposure what are they looking to be and maybe what are they looking not to be in well the first thing theyre asking about is inflation and the second is volatility so inflation you know an economics class and schools the professors told us inflation is the answer to every question and yet it wasnt for a long time because we had such low inflation now its the answer to every question and i think its important to realize that the fed doesnt fight inflation by itself right markets do a part look at mortgage rates maybe 25 basis points but mortgage rates have moved two hundred consumers do apart right but they say that the cure for high prices is high prices companies do apart by trying to keep their profit margins high and get productivity and currencies do a part look at the strong dollar thats actually a deflator for us so we talk about inflation and we talk about the fact that we never thought it was transitory we always thought it was transitional in other words we probably dont go back to the very low inflation that weve had for the last decade since the financial crisis we go to something more moderate call it 3 percent 4 percent and yet if you look at history markets have done just fine with inflation at that rate how do you how do you communicate that though to clients clients who look at it three to four percent whove been used to sub 2 percent and theyre now sort of rallying on the back of a napkin on their kitchen table trying to figure out whether they get in and out of something so we show them two things first we just explain how did we get here how did we get here this has been an extraordinary recession as we know it was a health recession and then a normal recession incomes go down that didnt happen this time right because of all the federal stimulus incomes actually went up and they went up in every quintile so we start with a very strong economy because we have a strong consumer so thats how we got here were starting with a strong eco system and then the other thing we show them is history markets may not rhyme but they can be quite similar and when you look at history over time you know the long term inflation rate in this country is 3 percent and yet what if markets done in a generally over time theyve risen theyve risen do you think were going to see enough economic resiliency to withstand whatever the fed has in store for us well so far i think we are right we do have a strong consumer we do have very strong companies with strong balance sheets record profit margins so so far again we come out of this with an extraordinarily strong economic ecosystem and in a way that the economy might actually be stronger than the financial ecosystem for a little while but we think thats going to that we think theyre going to catch up but psychologically i mean were kind of at a real inflection point for a lot of investors whove never really lived through a high persistently high inflationary environment or a persistently high rate environment here this is also coming kind of on the verge of what is supposed to be one of the greatest transfers of generational wealth in history here and im wondering how you adjust clients expectations in the face of that so its a couple of things the first one is we have to adjust our expectations around volatility weve lived in a low volatility world for a long time as weve had low inflation and low interest rates and actually coming down if you look at the year so far just look at the s  p 500 its down about 14 percent in fact thats the average in three years correction on the s  p 500 over long periods of time and yet 70 percent of the time the market ends up so its adjusting peoples minds around volatility it doesnt mean the market is necessarily going to end up this year but its adjusting their minds around volatility in the market but also adjusting their minds around volatility in the business cycle because the other thing that happened with all those years low and declining interest rates and inflation is that business cycles extend extended standard extended to record right eleven years with the last one before covid hit and so business cycles can shorten also higher interest rates and higher inflation is it harder though to get their message across to individual clients a wealthy individual clients versus the institutional clients yes so its interesting great question because we need individual investors to behave like institutions and the reason is we talked about the fact that the consumer is 70 percent of the economy we dont often talk about the fact that the individual investor is roughly two thirds of the financial markets today with them with the assets they control themselves and the assets in their 401k and thats a function of how corporate america has changed retirement savings right most of us dont reach retirement a pension plan anymore we retire with out 401k savings and our personal savings and so how the individual investor behaves is really important to their financial security their retirement but also to the economy and we need them to behave like institutions and why do institutions do when the market goes down they buy they rebalance they have a policy portfolio they rebalance thats not actually what individuals always do and thats what we have to help them do