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00:00Kim how you set up for the back half. Well we look a little further than a half year but I will tell you how we're set up. We look out three to five years and try to place some trends but I think these trends are going to play out in the second half of this year as well. We love technology and we still love consumer discretionary to be overweight in both of those. But we think that growth is going to continue for a lot longer than investors think. Now the reflation trade and we also think inflation will be transitory with an asterisk next to that. Kim nevertheless though it's been an amazing first half. If I have my money in an S & P track how do I sell it today and just kind of expect for the second half is going to be either a sideways move will. Judging by most of the targets out there we're going to fight a little bit. I don't think so. I think you always need to be invested in the market. We get surprises and we get upward surprises a whole lot more than people anticipate. I think people are risk averse and we're always looking for that downdraft that's going to make those people that go to cash feel really good. But if those updrafts that kind of happen unexpectedly that can make that cash holding look really bad. So while I think you should always have enough cash you don't ever have to go to the markets and sell some of your assets when times are tough. But I do think that you should be fully invested because there is a lot of good happening out there. Why. Tech and growth overvalue. So I think that value had been really overlooked these last few years. I mean it's been overlooked for a decade but it really was given short shrift last year especially with the Robin Hood traders driving the market. So now that that kind of has faded I still think Wall Street by and large rewards growth and some of that value pop up too. Was. Again those companies showing more growth than they expected. So again I don't think you can go wrong looking at where areas of growth are and you just can't camp out in the normal lines. You have to look far and wide. But Wall Street rewards growth. Kimmie you said a lot of good things are happening out there. And yet we've got to focus on growth. What is your expectation there for what bond yields to. We think that they don't get above to for the foreseeable future for many reasons. I think that the central banks of the world are coordinating maybe not explicitly implicitly to kind of match their balance sheet sizes. And as long as there is pure points of pain like over in the EU and maybe in Asia and Australia with covered that nobody is going to be in a mood to raise. So I think that that goes on for a very long time. Hey Kim does any of that play also in terms of the Delta variant that we've seen rising. Like I feel like if this those headlines had happened six months ago the market would've been a lot more turmoil than it is now. How closely you pay attention and how does that affect what you're going to invest in. I do pay attention to it. But again I have a longer term kind of just bias. So we'll get back to that. But I think Delta is important. But I also think it's just the other part of the covered pandemic playing out. Again we we up here in the northern hemisphere we forget that the southern hemisphere is in winter time. Right. And that people are indoors and all of that kind of stuff that goes on to encourage a virus to spread. So we have to pay attention to it. But let's let's make sure we put it in context. But I do think that investors are best served by looking for longer term trends because it isn't month to month or quarter to quarter. It's year to year kind of valuation. How much inflation are going to see over that medium. Certainly you're talking about Kim. Well I think it's going to run hotter especially in the things that normal people buy like food and energy. But the longer term trend for inflation I don't know. I guess in my lifetime has been lower and it's been driven by technology and improvements although it's lumpy in productivity. So I still think that there's a lot of areas for improvement of productivity that are going to enable or allow us to continue to experience disinflation. So it's a push pull that we have the reopening inflation rate where there's a lot of demand and not a lot of ability to get those goods to the places where they're being demanded. And that pushes prices up. But I do not think that we are seeing the beginning of this huge inflation worldwide inflation spiral.

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Kim Forrest on GDP Growth, Inflation, Second Half of 2021

Kim Forrest, Bokeh Capital Partners Founder & CIO, discusses upcoming trends in the second half, tech earnings, and longevity of inflation. She speaks with Bloomberg's Alix Steel and Guy Johnson on "Bloomberg Markets: America." (Source: Bloomberg)

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