As Tech Trade Falters, Value Stocks Are Breaking Out | David Hay

**SPEAKER_1** (0:01)
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**SPEAKER_2** (0:30)
Like, this is a club.

**SPEAKER_3** (0:32)
This is also a club.

**SPEAKER_4** (0:35)
And this is a club. My bad.

**David Hay** (0:39)
Come join us.

**SPEAKER_3** (0:40)
Sam's Club.

**David Hay** (0:42)
I think a key message is that, don't go to a bomb shelter, but be on alert for all these opportunities. And I just would reiterate, I think a great way to do that is to look at stocks are breaking out. So value is very cheap. Within the value universe, the deep value is really cheap, like unbelievably cheap.
It's amazing to me how many companies out there, they're pretty good companies, they're trading at 10 times earnings or less.

**Adam Taggart** (1:11)
Welcome to Thoughtful Money. I'm Thoughtful Money Founder and your host, Adam Taggart. Welcoming you here for a discussion with my great friend, David Hay, former CIO of Evergreen Gavekal, and now the publisher of the fantastic sub-stack Haymaker. David, thanks so much for joining us here.

**David Hay** (1:28)
Adam, it's a pleasure. If I sound a little weird, it's because, as you know, I was battling a pretty nasty cold just a few days ago, but it's pretty well gone. So, it's your good luck.

**Adam Taggart** (1:38)
I'm glad to hear that you sound great. Yeah, it's been a week of people playing hurt. We've got you coming in, still recovering from your thickness. We had Melody Wright on earlier, like less than 24 hours after having a root canal. So, very much appreciate you guys coming on when you're not feeling your best. So, just as a reminder to folks, David and I are recording this at the end of the week. The following week, I will be on vacation. And for the first time in years, not touching the computer, won't be making any videos. So, this was going to be the last video before my break that you were going to see, folks. You are lucky. We're going to get a bonus one squeaked out this coming Tuesday with Lacey Hunt. He called me this morning and said he just had a really important message he wanted to get out in the world. So, know that that video will be coming out after this one, but then I'll be taking a break for the rest of the week. I'll be back in early August. But David, I wanted to get you on here because you and I talk a lot. It's one of the joys I have to be able just to pick up the phone and chat with you.
You have been, I think, the most bullish, I've almost never seen you on any particular asset class on the oil market. You've been beating that drum for a while, and this was before oil price started taking off again here. But I wanted to give you a chance to come here and be able to expound on your thesis because I think you think this isn't a blip trend that it's going to last a week or two, that this is something you think has got some real legs. I wanted to be able to really plant that stake firmly in the ground for folks. Secondly, you've been on the channel, I think, your past two appearances, and you've talked about this potentially really big risk in the market that the market just doesn't seem to be pricing in any way, shape, or form right now. This is the risk of the repatriation of foreign assets that are invested here in America.
We juxtapose this against Mike Green's passive capital flows, which have been supporting markets for many, many years.
You were thinking that this might be one of the forces out there, one of the few forces out there that might be able to defeat the giant mindless robot, and there's been some developments on that front. I want to give you a chance to expound on that too. We can start wherever you'd like. As usual, David, being the A student you are, I told you no slides were needed for this conversation, and I just looked at your slide deck. You basically prepared a thesis.