Single Best Idea with Tom Keene: Sam Stovall & Alicia Levine
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was some people trusted me to generate conversations and to generate longer conversations. In the media, a typical American conversation, it's very difficult for Europeans where there's a much longer conversation, but it was three, four minutes. Anything over 4-0-0 was sacrilege. I mean, you can't do that. Nobody can go longer. And a major shout-out to people like Don Imus,

Howard Stern, a major shout out to Charlie Rose, who had the courage to develop longer

conversations from a time ago. Today was one of those magical days where back to back we had Alicia Levine, but first Robert, excuse me, look at me, Robert Stovall, his father, Sam Stovall, his son. I believe Sam Stovall showed up. Here is Sam Stovall on Clint Eastwood.

I got the best bit of investment advice from Clint Eastwood when he was playing Dirty Harry in the movie Magnum Force. A man's got to know his limitations. And basically, emotions tend to be an investor's worst enemy. And so extracting your emotions and using declines in the market, using technical analysis to see how far the decline is likely to go, etc.,

can then help you to buy on the dips. Also realizing, as I mentioned, it takes only about four months on average to get back to break even from declines of up to 20%. By the time you freaked out your financial advisor to lighten up on your equity exposure, the market's probably already on its way back to break even. And on average, the market gains an additional 10% after the conclusion of a correction or a decline of up to 20%. Bronze it.

That's all I can say. What he just said there, which is all the heritage of a Stovall family, what happens at CFRA, and goes back to the research of John Murphy and Ed Hyman and the rest, to use technical analysis to figure out what's going on.

Where you are within the fear is a number one use of the lines, the charts, the X's and the O's. Sam Stovall there. Classic. Then we got better. Alicia Levine showed up with her prodigious mathematics from BNY. Let's listen. It's hard for me to see us getting to 3% growth.

Right, what you had in the 80s was 3% growth. So that's really what you need for nominal earnings, right? Because earnings are nominal and growth is nominal.

The thing here is I just think what everybody's missing is the resiliency of corporate America and the resiliency of households, of households. I have a chart that I use which shows the crushing of the household's balance sheet of debt to assets. It is a crushing from 15 years ago.

of the global financial crisis. It's basically been cut in half. Households are so resilient and they're $53 trillion wealthier than they were five years ago. So your assets, your financial assets are going higher

and your liabilities as a percent of assets are going lower. So you've got healthy balance sheets in the household sector. All that debt, of course, was transferred to the government, but the households are resilient and corporate America is resilient. Large cap are resilient, less so for small cap because they've got floating rate debt.

But you're in a place where there's much more resiliency than the conversation we're hearing. Alicia Levine of BNY. Across the nation on your commute, thank you on Apple CarPlay, Android Auto, Sirius XM, Channel 121, now older digital technology seems bigger and bigger each and every day. In the heat wave, good morning, 99.1 FM in Washington, 92.9 FM in Boston, Tennessee.

And Bloomberg 11's Rio after a mayoral election in New York. A major shout out, Lauren Emmaus, absolutely fabulous, is our City Hall correspondent on podcasts, on YouTube podcasts. It's a single best idea.

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