Fruzzetti: There is some rebalancing into year end to prepare for 2026
2025-12-31_12-21 • 3m 51s
Frank Holland (Anchor)
00:00.000
What
do
you
make
of
the
fact
we're
on
a
3-day
losing
streak?
The
Santa
Claus
rally
doesn't
seem
to
be
materializing.
What
does
that
mean
in
your
mind
for
the
year
ahead?
Patrick Fruzzetti (Managing Director & Partner)
00:08.040
Well,
it's
been
a
good
year
for
risk
assets.
I
think
equity
valuations
are,
you
know,
look
relatively
expensive.
You
know,
credit
spreads
are
tight
and
there's
there's
some
uncertainty
over
the
labor
market
and
inflation
going
into
2026.
And
there's
probably
some,
you
know,
some
Patrick Fruzzetti (Managing Director & Partner)
00:23.320
form
of
rebalancing
heading
into
the
end
of
the
year
to
prepare
for
2026.
I
don't
make
much
of
it.
It's
not
like
it's
been
a
a
major
sell
off.
heading
into
the
end
of
the
year.
All
Frank Holland (Anchor)
00:31.320
right.
So,
it
seems
like
you're
bullish
on
2026.
So,
where
the
day
is
prosperity?
Patrick Fruzzetti (Managing Director & Partner)
00:36.160
Um,
yeah,
prosperity.
I
mean,
you
know,
the
the
Greek
writer
Sophly
said,
"Without
labor,
nothing
prospers."
And
so,
I
I'm
looking
forward
to
working
hard
on
behalf
of
my
clients
in
in
2026,
and
I
expect
you
to
be
working
hard,
too,
Frank.
Frank Holland (Anchor)
00:49.440
I
I
hope
to
be
working
hard.
Absolutely,
Patrick.
Um,
I
want
to
get
to
you
just
your
your
broader
sense
of
what's
going
on
in
the
markets
in
these
last
couple
days.
I
know
you
say
you're
not
putting
too
much
weight
on
it,
but
the
wild
swings
when
it
comes
to
metal
The
fact
that
Frank Holland (Anchor)
01:00.800
we
got
these
Fed
minutes
that
show
a
lot
of
the
members
would
like
to
just
kind
of
hold
rate
steady
for
quite
some
time
and
the
fact
that
there's
no
price
no
cuts
really
being
priced
in
until
probably
like
April.
What
is
that
kind
of
set
us
up
for
in
Q1
of
this
year?
Patrick Fruzzetti (Managing Director & Partner)
01:14.560
Yeah,
I
expect
there
could
be
some
choppiness
in
Q1.
Um
after
all,
it's
a
mid-term
election
year.
Mid-term
election
years
tend
to
see
you
know
peak
to
trough,
tend
to
see
double
digit
moves
um
and
you
know
I
don't
expect
any
different
this
year.
Um
and
so
with
a
Fed
cut
got
Patrick Fruzzetti (Managing Director & Partner)
01:30.240
expected,
possibly
in
April.
I
think
there's
going
to
be
some
choppiness.
And
I
I
you
have
to
continue
to
look
at
the
dollar,
right?
So
that's,
you
know,
perhaps
there's
been
some
rebalancing
when
it
comes
to
metals,
but
again,
I
think
inflation
is
just
not
priced
into
the
Patrick Fruzzetti (Managing Director & Partner)
01:43.280
market
right
now.
And
so
that
that
overall,
I
think,
could
create
um
the
most
volatility
for
the
market
in
the
first
half
of
the
year.
All
right,
we
had
Frank Holland (Anchor)
01:50.480
a
guest
on
earlier,
Doug
Bonaparte.
He
said
investors
need
to
lean
into
that
volatility
for
opportunity.
Do
you
agree
with
that
idea
that
you
want
to
lean
into
volatility
as
opposed
to
some
other
strategies
like
an
income
strategy?
We're
talking
about
Dogs
the
Dawg.
Not
Frank Holland (Anchor)
02:01.960
necessarily
necessarily
saying
that
one,
but
being
more
focused
on
dividend
paying
stocks
and
value.
Patrick Fruzzetti (Managing Director & Partner)
02:07.240
Yeah,
I
mean
I
I
I
I
like
value.
It
depends
on
the
sector.
So
there's
there's
always
there's
always
going
to
be
companies
to
buy.
And
so
I
I
would
tend
to
say,
yes,
you
want
to
lean
into
those
corrections
to
acquire
companies
and
assets
that
you
think
are
undervalued.
And
I
Patrick Fruzzetti (Managing Director & Partner)
02:21.960
expect
to
do
the
same
when
that
when
that
comes.
All
Frank Holland (Anchor)
02:24.160
right.
I
want
to
get
to
your
pick.
It's
Agile
Technologies.
Not
undervalued,
trading
about
22
times.
So
trading
pretty
close
to
in
line
with
the
market.
What
opportunities
are
you
seeing
when
it
comes
to
that
name?
Patrick Fruzzetti (Managing Director & Partner)
02:34.360
Well,
overall,
I
think,
you
know,
the
healthcare
sector
is
under
value,
but
when
it
comes
to
Agilent,
I
mean,
it's
it's
an
oligopoly
really.
I
mean,
they
make
high-tech
tools,
you
know,
for
scientific
labs.
And
so,
when
you
think
about
what
their
machines
do,
I
mean,
they're
Patrick Fruzzetti (Managing Director & Partner)
02:47.280
helping
to
analyze
everything
from
cancer
cells
to
the
pharmaceuticals,
to
chemicals,
and
food
and
water.
So,
it's
an
essential
an
essential
business,
and
I
think
it'll
expect
to
continue
to
grow
in
2026.
Frankly,
in
the
years
ahead,
and
I
think
that
the
valuation
is
reasonable
Patrick Fruzzetti (Managing Director & Partner)
03:03.520
all
things
considered.
Frank Holland (Anchor)
03:04.600
All
right.
Is
this
part
of
what
you're
seeing
as
a
broadening
in
the
market?
The
fact
that
your
pick
it
wasn't
one
of
the
Mag
7
names,
it
wasn't
something
tied
to
the
AI
build
out,
especially
after
the
news
that
we're
getting
today
that
ByteDance
plans
to
buy
about
$16
billion
Frank Holland (Anchor)
03:15.520
worth
of
chips
from
Nvidia.
Patrick Fruzzetti (Managing Director & Partner)
03:18.000
Yeah,
I
think
that's
right.
I
think
you're
going
to
see
a
broadening
out
in
the
market.
Um
so
and
and
that
really
that's
going
to
mean
there's
going
to
be
rotation.
So
there
there
there
may
be
some
rotation
out
of
those
Mag
7
names
um
where
those,
you
know,
could
underperform
Patrick Fruzzetti (Managing Director & Partner)
03:30.040
form
relative,
you
know,
to
other
sectors
in
the
market.
Like
I
said,
I
think
the
healthcare
space
is
certainly
right
for
that
in
the
next
year.
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