00:00In terms of a number, a percentage of when you would be comfortable getting in, how much does the market need to decline before you say, OK, I think that this is fairly valued.
00:12I think that it's time to get back in and start buying.
00:17Yeah, that's that's a that's a function, both of the Fed's interest rate policies, because that obviously has a big impact on the future value of corporate earnings and then also the earnings growth.
00:26You know, the market, Warren Buffett famously has said that in the short term, the market is kind of a political animal and it's kind of a voting machine.
00:35What's popular and then long term, it's a weighing machine.
00:38And what it's weighing is the increase in the the percentage increase on free cash flow and earnings for for corporate America.
00:47So the way I'm looking at now, because I really like a margin of safety, is as long as stocks are priced at 20 times earnings or more, I'm not super constructive on the market.
00:57I just don't think your odds are very good at those kind of prices.
01:00But once it dips down to 19, 18, 17 times earnings, I get a lot more interested.
01:05So you'd have to see the market drop around 10 percent before you get to those kind of multiples.
01:09And we're going to wait and see right now.
01:11We've got enough exposure and we never completely get in or out of the market because you don't want to time the market.
01:16It's just a function of whether our exposure is higher than our targets for allocation to stocks or lower.
01:22And right now they're slightly higher.
01:23So we're going to just stand pat or trim for the time being.
