Google Earnings Preview, SpaceX Gives Us a Date, Internals Heat Check, Biotechs Rally

23:32micron fell 13 this is just last week amd fell 11 nvidia fell four which seems tame by comparison oracle fell 10 cisco down seven western digits that down 18 whatever it was it was it was it was bright red um the vic so chart can made the vix of the semis this is really just rolling 30 standard deviation but close enough and wow it got there so the prior two peaks the prior peak is Liberation Day. The peak before that is DeepSeek. And then you got to go back to COVID. So it was real. It was real.

24:06Downtown Josh Brown:59 was the high of the spike on the semiconductor VIX. Yeah. So that's real. So even for semi-investors who are used to this kind of like long-term semi-investors who have been in these stocks for 20 years, they're used to a lot of volatility, but this is up there. Yeah. So, uh, Colin Morgan at Goldman Sachs, uh, could not say this better myself. Try it on, please. The AUM of levered ETFs has dropped by over$100 billion. Thanks for playing. And of that$100 billion, 63 has come out of semis to contextualize that 39 % of levered semi ETF AUM has been reduced. The, this decreases one of the healthiest things that can happen for the market.

24:52Amen, sister.

24:54Downtown Josh Brown:I totally agree with that. And the semis rallied hard, hard, like all that dumb ass activity, like got washed out. And then real buyers came. I mean, I'm sure the leverage buyers came back today too, but real buyers bought these stocks 30, 40 % off their highs and bought them with conviction today. They sure did. I'm not sure what exactly is in this basket because I had a hard time replicating this, but whatever. Goldman has a high beta momentum, which... You know, this is all Korean chip makers and shit, like memory stocks. Well, whatever. You know what's in here. It had its worst 21-day... I mean, it got smoked.

25:37Like, smoked, smoked, smoked. All right, this is a great chart from Duality Research. Put this out, please. So we are looking at the S &P 500 in black, of course. That was the peak on June 2nd. And then he breaks down what was the relative sector performance. And Josh, to your point, so I think this is great. We've gone sideways. We've chopped sideways. It's been a choppy market, like not super fun to trade. But you lost technology. Technology has been dog shit. By far the weakest performer since it topped. And yet, despite its, what is this, 20%, 30 % of the index? Market hung in. Whatever it is, the market hung around.

26:16Downtown Josh Brown:What on earth is more bullish than the leadership group, chart off, what on earth is more bullish than a situation where the leadership group is also the largest sector and also has the most speculative activity in it, gets absolutely taken to the cleaners, and the S &P 500 index doesn't budge. because there's so much buying in almost all of the other sectors that the market holds up, the internals blow out in terms of broadening, and we go through a margin wipeout and then come out of the other side with a rally in the former leaders once again. If I scripted it, you couldn't write a more bullish resolution of all that leverage in May and June in this very narrow area that just became like the whole market.

27:24Downtown Josh Brown:And then it gets wiped out and look where you could put the chart back on. You know what this is? This is the end of Avengers Infinity War. like Star-Lord and Iron Man and Spider-Man and Doctor Strange are like trapped on another planet somewhere, just completely out of the game, and all appears to be lost. And then everybody else shows up ready to battle, like one after another. Look at this. Energy stocks, staples, the drug makers, the biotechs, the banks. What else would you want? How else would you want to see this end? So we had this crush from the Microns, the Intels. They sold the Sienna finally.

28:18Downtown Josh Brown:They wiped out all of the hottest stocks. But you know what? We just had this whole cavalry come in and keep the market where it was. If you're looking at that and you're like bearish, who taught you the stock market? Where'd you look? Where'd you learn Twitter? What are you, an idiot? Like this is how you would want it to resolve itself. One huge detail in all of this is that technology did get crushed. A lot of it was semiconductors. One stock that worked and kept the market on an even keel. Toast. Was that? It did. Apple is true. All right, take this out. The anti-CAPEX. it had its best three-week stretch relative to the index since 2009.

29:08How? I mean, we know how. The AI trade unwound. Do you want to give me some credit for this or what do we want to do here? This is the anti-AI tech stock. You know what? I was going to, but now I don't want to.

29:20Downtown Josh Brown:No, come on, dude. A little bit. I mean, if you let me finish your sentence, you've been all over this. I've been dead wrong on Apple for like two years now. So I will stop taking shots. You've been 100 % right. And the market appreciates you. Yeah, I appreciate that, Michael. Thank you. I really think that this Apple leadership, I know it's been an unbelievable three weeks. We have nailed this on the show. I have not. You have. But I do think it has legs into because you I've talked to you about all these catalysts that are coming up I don't think these things that I'm talking about in September and October are on most people's radars but they will be I surely I do I think that the market knows what you found out like I don't think the narrative is there yet I think you were very early I I'm not getting off it though because it's look it's not a cheap stock but now they have earnings and revenue growth and it's and it's been a long time since they have and the only real negatives here are being resolved one by one so the big catalyst last week um that that really got the stock going was they got approval to do their ai on their phones in china and china is the second biggest market after the u.s and And it was not really on the radar of people that this was even like up for discussion.

30:49Downtown Josh Brown:And then they announced it. Like they've reached an agreement with the Chinese government on AI on the next wave of iPhones. And they're working with local, you know, regional champions like Baidu, et cetera. But like this was really, really key. And they got it. So I think that's number one. And then number two, people are worried about the trade war and they're worried about memory prices and blah, blah, blah. Apple's raising prices. Number one, they're going to get away with it because of the way people pay for their phones. And number two, should memory prices decline, Apple's not going to lower their price.

31:29Downtown Josh Brown:And that'll be an expansion of their earnings as a result. I mean, that obviously was not in the price because they just announced it. And that was wonderful. I think it's going to be excellent for business. All right. What are these charts from Neil? So RenMac, just kind of underscoring what we've been talking about. You know, there's been this whole category of AI CapEx stocks like Caterpillar and companies that are not tech companies. GEV. Yeah. Like the electricity generation, the turbines, the builders, the diggers. So there's been like this whole basket of non-AI, AI stocks that have been moving with the semis.

32:10Downtown Josh Brown:And Ren Mac makes this point. The names that traded to the upside with the semiconductors sold off with them. Put this first thing up. It's a scatterplot. You see here Vertiv and Eaton and GE Vernova and Cummins. Commons. Look at them trading in lockstep with NVIDIA. All right. So the Y axis is return since semis peaked on June 2nd. And then the X is the correlation with SMH. So yeah, this is clean. So the more correlated the stock was with the SMH, the worse the performance has been while the SMH has been selling off. So it's - Oh, wait, hold on. Chart back on. Yeah, it is. But the gray, interestingly, so the gray is tech.

33:00Obviously, you see a lot of that in the lower right. But there's a lot of non-tech. And these are all the names. Caterpillar.

33:07Downtown Josh Brown:So give me the next chart, and it'll actually show you. There's names in here. Comfort Systems, which is FIX. This is cooling. People thought it was an air conditioning company, and then all of a sudden it had a data center biz. And I think we own that in Porterhouse. I was about to say, I think we own that. Yeah. I think we do. We own a bunch of these names in Porterhouse. But like you really can see – and of course, they all rallied hard today. They were up – Porterhouse was up 3.9 % today, at least my account was because we're the smartest investors ever. Yeah, we were crushing it. All right.

33:40Downtown Josh Brown:Anyway, I thought this was interesting. And now that's a really good segue into the next thing I want to talk about, which is fears of a catchdown. In some quarters of the market, the belief is that now that the momentum names have been killed and the hyperscalers are off their highs, what's more likely is that the rest of the S &P 500 will catch down. I totally disagree. I'm glad you picked this out. I don't agree with it either, but I want to talk about it with you. On the surface, why do you disagree? Because of what we just spoke about. So I read this this morning. That's just one day though.

34:19Downtown Josh Brown:That's just today. No, no, no, no, no, no, no, no, no. I'm saying the comeback in tech so far went on day one. Forget it. I'm not even talking about that. I'm talking about the fact that these stocks have all gotten killed and the market held in there. Why would they all of a sudden catch down? If they were going to get sold off, they would have been sold off concurrently. The entire market would have put. Money left these names and went into the rest of the index. I don't buy that it's going to be a delayed catch down. I just don't. I reject that. All right. Spencer Jacob, who we've had here on this show, is quoting the technical analyst from BTIG, Jonathan Krinsky.

34:55Downtown Josh Brown:I love Jonathan's work, by the way. Yeah. So Jonathan put this out on Monday. So it's a shame the market was so green today. But let's just let's talk about the possibility. He said 52 trading days so far this year. the index one in one direction, but the majority of S &P 500 stocks went the other way. It's pretty rare. That's been happening for the last three years. Okay. It's not rare. It's rare historically. It's not rare in this market. Okay. He says that that ties the record, which was from the year 2000, the third highest number of instances this century. So it is really rare. July is not over yet, but 2026 will almost certainly break the record.

35:42Downtown Josh Brown:We're on pace to break the record. It's not rare. Throw the chart up. It's not rare. This is the market that we were in for the last three years. Number of days when the S &P 500 price and breadth moved in opposite direction. Throw this chart up. Now, throw it up. Thank you. This is not rare. We've been seeing this for the last three years. The market is very weird because you can see - It's a concentration because it's a highly concentrated market at the top. So when those stocks go down and the rest of the market doesn't, you're recording one more day. That used to matter a lot. That used to be a signal.

36:13When all of the market was doing one thing and the index was doing the opposite, that was like, wait, what's happening? And this happens every other day now.

36:20Downtown Josh Brown:Well, here's the money quote. Divergence can be the hallmark of a rally when a new industry has taken the market baton, but also a preview of broader market trouble. BTIG writes that as the relationships between stocks normalize, quote, it's likely to be a result of everything catching down to the recent pullback in AI names rather than AI names catching up to everything else. Today's market action seems to be a repudiation of this idea. So yeah, I just, I disagree with the premise. Now, Jonathan might turn out to be right. I mean, obviously the stock market could fall from here, but I don't see it that way.

37:00Downtown Josh Brown:Okay. Well, I think he'd probably rather be wrong than right. I think he's just talking about the possibility and the likelihood. Here's why I don't see it that way. Here's the evidence. Next chart, please. This is from Grant Hawkridge. The percentage of stocks above their 200-day moving average. The 500, which is the large, the 400 is the mid, and the 600 is the small. They're all at the highest levels since 2024. Everything else is working. So this idea that all of a sudden they're going to retreat and catch down, why? I mean, they could, but there's no evidence that suggests that they're going to.

37:35Throw the next one up. This is from Duality Research. On the left, we're looking at the percentage of stocks at highs, various timeframes, four-week, eight-week, 12-week. There's a lot of real estate in there, a lot of financials as we've discussed, energy.

37:50Downtown Josh Brown:Look at the four-week. Oh, my God. Yeah, there's a lot of stocks doing really well at four-week highs, at one-month highs. And then look at the stocks at lows. Forget about 52-week lows because there's really nothing to be seen there. But there's just - There are no 52-week lows. So I'm seeing a lot of highs and not a lot of lows. And - You know what? That would be a really great dashboard to just keep in front of you. So for people listening, not watching, we're looking at every sector. We're looking at the percentage of stocks at four-week, eight-week, 12-week, 24-week, and 52-week high. And then we're doing the same thing for the lows.

38:26Downtown Josh Brown:There are no 52-week lows in this market. Like literally 0 % of stocks in nine of 11 sectors. Right, right. So virtually none. Almost none is my point. But then put this back up. But then if you look at like 57 % of energy stocks are at a four-week high, 30 % of comm services, a third of stocks are at a four-week high. And look at percent of stocks at lows. So you got the tech washout. Yeah, and almost half of the index at a four-week low, like a real washout. And the market hung in there. So I just, I think we're good. I think we're over the hump. Now, let's see what Google says. Obviously, like the future is hard to predict, but I see no evidence that that's going to happen.

39:07Downtown Josh Brown:No, you're right. There isn't any. It's all what might happen. There's no evidence that it's happening right now. Right. So. All right, let's keep moving. Man, people love stocks. People really, really love stocks. And they really love equity ETFs. Women be shopping. Yes, they do. You can't stop a woman from shopping. That's not a professor, right? Yeah, it's not me. That's not me. This is a segment people love stocks. People love stocks. Chart on. So Todd Soane has, I love these charts. We're looking at cumulative daily equity ETF flows by year. And this year looks nothing like the others. Now, you might say this and say like, whoa, I actually, I don't like this.

39:51This makes me a little bit uncomfortable. I understand. There's a lot of enthusiasm in the stock market these days in equity ETFs at least.

39:58Downtown Josh Brown:This is all equity ETFs, not any specific type. Just if it's a stock ETF. Wow, this is crazy. Crazy. So remember how much people loved ARK, Josh? Yes. In 2021 and 2020, I suppose that's when it happened. That was the heyday. That looks quaint by comparison. Next chart. Look at DRAM. Oh, my God.

40:23So this could make you nervous. And guess what? We've been all over this. It just fell 30%. People were right to say this isn't cool. There's too many people on one side of the ship. Well, the ship is now floating straight. I'm not a seaman, but it's floating straight. Everybody that needed to go overboard, they were just bounced out to sea.

40:47Downtown Josh Brown:I want to put that chart back up. I want to make a point here. Here's the difference. So yes, the cumulative flows and the daily trading volume in DRAM dwarf what was happening with the ARK Innovation Fund at its peak. but an even more important difference is that arc was for like according to them they saw it as a core like they didn't see themselves as a thematic like they saw themselves as this is better than the way that you're investing what's your point they did commercials like why value investing will never work again and stuff like that like this was like the idea is like this is the new equity core is investing directly in innovation.

41:35Downtown Josh Brown:Nobody involved with DRAM is thinking like this is replacing their core in their portfolio. Like everyone gets that DRAM is like a sleeve or an also or a thematic. Whereas like people really thought like the new way to invest in a diversified equity is like own arc instead of the S &P 500. People really did that. And the reason why those numbers look quaint, even though they're big at the time, she invented this. like thematic ETFs was not a category before her. Active ETFs, not a category. Nobody thought there'd be a future in it at all. So leveraged investors were wiped the hell out, but serious investors kept buying.

42:20Look at DRAM daily fund flows. There was one day, one day in the 30 % decline of whatever it was of ad flows.

42:27Downtown Josh Brown:June 20th. Where were you on June 26th or June 25th? What a bloodbath that day must have been. Must have been great for the market makers, though. That's a lot of activity. I don't think they care directionally what the thing does. They just care that people are trading it. So that's all I got to say. People love stocks. And I love that people love stocks. I love stocks. Yeah, thank God for that. I want to do a little bit of myth busting here. our friend friend of the show Adam Parker did something about this like K-shaped narrative I'm just going to quote him and I would love to get your take on what he's the point he's making I think what he's saying I'll get to the end and then I'll support it I think what he's saying is like yes of course there are haves and have nots in the current economy as there always are and it's true that there are some extremes between like the upper end of the K and the lower.

43:29Downtown Josh Brown:But like also the lower end of the K, it's not as bad as you think for a variety of reasons. And we might be overestimating this idea and punishing certain stocks or certain categories of stocks for no good reason. So he's asking, perhaps the narrative is more about the lower third, not participating in balance sheet improvement as opposed to their own income statements. The narrative often jumps from the lower income consumers are frustrated and trading down, then it jumps to lower income consumers are financially deteriorating. And that second part just might not be true. And so here are a couple of pieces of evidence that the lower end consumer is actually doing better than perceived by the people who continuously talk about K-shape.

44:24Downtown Josh Brown:Number one, lower income wage growth has recently re-accelerated. Bank of America's deposit account data showed that after-tax wage growth for lower income households went from 2.9 % in May to 4.1 % in June. PNC also has data supporting that idea. Two, credit performance at major banks is healthy. JPM, Bank of America, Wells Fargo, all reported stable is imported or declining card delinquencies and charge-offs while card spending and loan balances continue to grow. 90-day card delinquencies are the lowest they have been since September 2023. So yeah, K-shape, the bottom of the K, they maybe aren't keeping up in terms of like their net worths.

45:14They're not going to the World Cup.

45:15Downtown Josh Brown:They're not deteriorating is the point. More card accounts are being paid in full. This is the Philly Fed. 37 % of credit card accounts paid in full in Q1. The amount making minimum only payments declined to 10%. Four, most households describe their finances as acceptable. Still, 73 % of adults told a Federal Reserve household survey that they were doing okay or living comfortably. That's up from last year. 63 % said they could cover a$400 emergency. Five, lower income consumers are adapting rather than disappearing. So they're increasing spending at discount apparel stores. They're trading down private labels, discount, merchandise.

46:06Downtown Josh Brown:We all understand this, but the spending is not stopping. It's continuing. So this is substitution and price sensitivity, not demand destruction. And last but not least, aggregate consumption remains positive. June 2026, core retail sales rose 0.5%, following an upwardly revised 0.8 % the prior month. It's mostly higher income consumers shifting that up, but the overall data does not show the bottom half falling out. Are we saying it's good to be on the bottom of the K? No, of course not. Are we saying that there isn't room for improvement in these people's lives? No, of course we're not saying that.

46:48Downtown Josh Brown:But it is not true that this bottom income consumer is drowning or dying or disappearing from the stores or not paying their bills. It's just it's not in the data. It's not what's happening right now. What are your thoughts? I've been saying this for a long time and it's probably deeply unpopular for people with money to say that things aren't as bad as the people are making it out to be you can't win so yeah to echo what Josh said obviously it sounds insensitive to say this but we're looking at the data and we're listening to the people with the data inside the banks and they're all saying the same thing they're all saying the same thing this guy went viral a PNC economist They have the data.

47:36They literally have the spend and the balances, and they're saying it's improving. Now, like obviously the bottom 10 % of people are always struggling. That's always the case. And I think that probably where the bigger extreme is, is the people at the top of the K, all the people that went to the World Cup and spent$50 ,000. It's obscene wealth that it makes the lower end of the K. And even the comparison, the juxtaposition. It makes everybody feel shitty. But it's awesome news that factually, looking at data, the lower half of the K is not doing nearly as bad as some people would have you believe.

48:15And it's virtue signaling. It's people with money saying people don't understand how bad people are doing, how much are getting crushed by inflation, how they can't afford the rent, how they can't afford the groceries.

48:27Downtown Josh Brown:But if you say that, though, you're right. If you come out on Instagram and say that, people will share your post. This is how you go viral is to say how bad everything is. Yeah. Who's against that populist message? It resonates because obviously people are struggling. Obviously, we all know people that are struggling, but it's just not true. And I have to fight back against the poison, even if it's an unpopular take because it's not true. So, right. So I get on a plane. I'm in business class. Who are all these other people on the plane? You know what I mean? Like who is filling up every airplane I'm on?

49:08Dude, we want –

49:08Downtown Josh Brown:I haven't been on a flight with empty seats in three years. When we went to the Commander's Lions game, these are not all rich people, but there was 90 ,000 people there. And they're all on the top of the K? Can't be. I'll let Adam have the last word. Wait, wait, wait. One last thing. I was at Fanatics Fest all weekend. And there's a lot of people – We're bragging about this. There's a lot of people there. What, you're too good for fandom? Yeah. Yeah? Yeah. The only autographs I'm interested in my own. Go on. You got to meet all the Knicks. I think that's the coolest thing ever. Yeah, sure. Don't save yourself.

49:42No, I do think that's cool. You're not a man of the people.

49:43Downtown Josh Brown:I wouldn't have gone. You are no man of the people, sir. No, I'm not. I'm salt of the earth, though. No, you're not. You are acid of the earth. I was there and there was a lot of people that were teachers. I met a bunch of them. There was a lot of gym teachers and whatnot. This is not the upper end of the K only. And they were all there and they were all able to be there having a great time. The K is not as bad as people think. Which of the Knicks were you most excited to? You're not interested. Let's keep moving. I am interested. No, don't. Can I tell you who I think it was? Don't take interest.

50:18Downtown Josh Brown:Can I tell you who I think it was? Go ahead. Who you were you? Knowing you, I think you were most excited to meet Kat. No, but close. Not a bad guess. You're a good guess? Yeah. I was most excited to meet Coach Brown. Really? Yeah. Really? Yeah. I feel like you could have done that outside of the Fanatics Fest. You probably could have done that. Coaches don't make appearances ever. This is very rare. And I was able to tell him that we were the loud fans behind him in Denver. He gave us a shout out on TV after, and he was so excited to see me. All right, dude, I'm glad you got to go to that. I want to give Adam the last word on this to sum up.

50:55Downtown Josh Brown:The lower end consumer is employed, generally current on most obligations, receiving improving wage growth, continuing to spend and becoming more price sensitive. All of those things are true. The conventional K-shaped narrative is probably roughly half reality and half overstatement. It accurately captures wealth inequality and affordability frustrations. This is the part of it. But frequently exaggerates the degree of deterioration in current cash flow. He's absolutely right. I think when you say that the bottom of the K is not doing as bad as people think, it sounds like you are pro-wealth inequality.

51:34Downtown Josh Brown:Right. I think that's what people hear. Which, of course, nobody is pro-wealth inequality. The only difference we have in society are how to address it. Elon wants to be a trillionaire. But it's like, how do you, I would argue Elon Musk personally has been responsible for the creation of more millionaire households than any publicly traded CEO in the entire market. That's my opinion. Wait, one last thing. The companies that report that the K is OK, that it's exaggerated a little bit, are the banks, right? The companies that literally have the data and the companies blaming the lower consumer are fast food companies.

52:20Downtown Josh Brown:Yeah. Yeah. The banks are saying people are paying their bills and the people listening to that message are like, no, they're not. It's like, no, they literally are. Sorry, Chipotle. People don't want to spend$16 for a bowl. They're doing something else. All right. I'm going to make the case for biotech stocks. They're doing well. I don't really know much about what - You have done that earlier this year and you've been right. Yeah, I don't really know honestly what's going on. I did some digging. It's like, I don't know, M &A, IPO, whatever, whatever. Like, you know, there was a lot of pressure from RFK on these stocks.

52:51So they were just, they were very hated and now they're bouncing and maybe that's just, maybe that's just it. So the one that I own is XBI. First chart, it's working. The next chart is XBI, which is the equal weight version relative to the cap weighted version. So this is similar to IWM versus SPY. You are seeing a continued risk appetite for the riskier names. The part about the chart that has me potentially a little bit worried is, are we double topping? Next chart. This is, we're getting back to levels that we were at during the mania in 2020. But I think this is going to 200 eventually. All right.

53:31Downtown Josh Brown:I love the pitch. And I actually think this chart that you ended with is the bull case. because the quality of the companies that make up the XBI and the IBB have improved since that last peak in 2021. Earnings are higher for the companies that actually have earnings in that index. And the largest companies in the IBB, which I think leads the XBI, are doing better than ever. And these companies basically have been left for dead for a really long time. So I don't look at that as a double top. I look at that as we've come full circle and now all of the companies underlying this index are in a better place than they were back then.

54:15Downtown Josh Brown:And in 2020, that was Moderna, which was up, was it up a thousand percent? That was like the pandemic drug mania. Don't look now. Moderna is a leader in healthcare this year. It's one of the best stocks. I sold it 400 % ago. Awesome. All right, let's go. Mr. Retro, what do we got?

54:36Downtown Josh Brown:Let's put it up. Okay. Let me explain this. The bottom, the orange, is an entire S &P sector ETF. It's one of the 11 sectors. Roger, roger. The top is an ETF of a specific industry group within it. Okay. Okay. If I'm you, let me just cheat. Let me cheat. If I'm you, I'm using the bottom one to figure out the top one. Well, that's what I did. Is the bottom one financials? Okay. You're halfway there, but you got to guess the purple. Okay. The purple is the mystery. Insurance. Do you just look at the chat or you really guessed it? Swear to go. Be honest. Dude. I cheat off the chat. How do I do a screen share?

55:26I'm never in the chat. You have my full attention.

55:29Downtown Josh Brown:All right. Michael, a round of applause. You did it again. First try, Batnick. I honestly would never in a million years have guessed insurance, but you've been on that. So that's why I guessed insurance. So you knew what I wanted to talk about. Yeah. This is the – this is – chart off. This is the – I have more. This is the best subsector within finance this summer, within the financial services this summer. There are a lot of drivers here. but at the end of the day what really matters for these companies is you didn't have any catastrophes to speak of yet so they're over I guess over earning you've got premiums rising and a consumer willingness to pay those higher premiums and the thing that you have to remember at the end of the day is these are basically de facto investing companies and rates are higher they're elevated relative to two years ago three years ago and they're staying high, we know.

56:29What's your favorite name in here?

56:31Downtown Josh Brown:I'm going to show you three that are on my list of best stocks in the market. Hartford looks great. That's on your list, right? Yes, but I'm not showing you that one. I have three others. Go ahead. All right, Daniel, if you please. Here's Travelers. Oh, man. I've been f***ing pounding this stock on TV to no end. Do you want it? I'm not in it, unfortunately, at the moment. You know what? You know what? Hold on. This is so awesome because these names are like unbuyable because they're just so boring. But if you took the ticker off, this is a buy 100 out of 100. We had this on, I think, June 8th or something.

57:07Downtown Josh Brown:We brought this to CNBC Pro. Look how clean that is. Sean and I, and then we did a TV segment about it, and it just will not stop going up. I think it's up 70 points from where we started talking about it. Give me the next one. I can't buy it here. Give me the next one. So that's property casualty, plain and simple. Here's Chubb. This is global, like unbelievably large and important insurance company. This is the high end. This is who serves the top of the K, Chubb. They are like literally like if you call them and say I had a problem with my house this morning, they'll send somebody out with a check that afternoon.

57:42Downtown Josh Brown:Like wealthy people work with Chubb and carriers that cater to big corporations and the top of the K. Put that chart back. This is I think this is a breakout in progress. Wait, I love that you're saying this. You know why? This goes back to our theme earlier. Chart off. Investing in the top of the K is a legitimate investing strategy right now. Chubb, Delta, Hyatt, Amex, whatever. What's the play to invest in the bottom of the K? There is none. It's dumb. That's why I was trying to tell you a year ago you were putting up charts of Dollar General. I'm like, well, even if things go great, how – But that's not a play on anything.

58:19It's just that's an idiosyncratic type of thing.

58:22Downtown Josh Brown:No, that's a play on trade down, which even if you're right, how much money do you make? That's the problem. Chubb is earning record profits. Travelers is earning record profits. These companies are not lowest common denominator clientele. These companies are selling an extremely profitable product to people who will literally pay anything. What's the last one? I got one more. aflac this is a japanese customer primarily most of the earnings growth for aflac come out of japan um but look i mean look at this chart it's going on if you if you don't know the ticker symbol and i show this to you you probably think it's like electrification for data centers yeah it's you know what i mean yeah what what is there not look at look at the respect look at the f***ing respect for that 200 day.

59:13Downtown Josh Brown:Look at it. The entire way. The entire, would you have one violation? Go to Travelers. Of that 200 day? Speaking of respect, this is respect. Put up the Travelers. Unbelievable. Look at this. Wow. Look at this. So that's directly, all three of these names, directly out of our best stocks in the market column that we do for pro. To quote the great Jennifer Love Hewitt, what are you waiting for? Yeah, I'll just buy every stock that looks good. I'll be out of money real fast because we have 208 names on our list. All right, guys, that's it from us tonight. I want to remind you, my personal favorite podcast, Animal Spirits, comes tomorrow morning, YouTube, Spotify, Apple Podcasts.

59:59Downtown Josh Brown:Do not miss it. That's Michael and Ben. We'll have an all-new edition of Ask the Compound. And then at the end of the week, we're going to finish out strong with an incredibly special guest. Actually, two guests. First time on the show. I can't wait. I mean, you guys don't even know what we have planned for you. You don't even know. So don't make plans on Friday morning because we're coming hard on the Compound and Friends. What is that? What are you doing? Are you doing an unboxing? It's a lightra beam. My office is getting dark. I got to get ahead of the winter. Duncan, help me out. All right, guys.

1:00:36Downtown Josh Brown:Thank you all for coming out. God bless. Good night.

1:01:08Thank you. is no guarantee of future results. Investing involves risk and possible loss of principal capital. No advice may be rendered by Ritholtz Wealth Management unless a client service agreement is in place.