Vitali Mossounov – 06/15/2022

>> Hello I am Greg Bonnell. Welcome to money talks, a new program broadcast on web broker. I will be welcoming guests here to take your questions. We will look at what is moving through the markets and answer your questions. Coming up on today show: I'll be speaking with Vitali Mossounov, global technology TD asset management. Not to give into panic he will tell us. Staying on the topic of technology, TD investments Nugwa Haruna will be speaking with us. Email us at moneytalklive@td.com on web broker for any questions. Before we get our guest today let's give you an update on the markets. I want to start here with the TSX composition index. We are seeing some green on the screen today. Our big event of course is just about two hours away that would be the US Federal Reserve. That two-day meeting with widespread expectations and you will get 75 basis point hike. ^...¸One stock in particular standing out for the gains that is making one of the top gainers in Toronto is Bombardier. Shares are up right now to the tune of 14 1/2%. We want to take a look at what is happening south of the border. Of course investors are going to be watching at 2 PM Eastern time and we will be hearing from the chair of the US Federal Reserve. The expectation is 75 basis points. Quite a shift from the past couple of days. Anthony Okolie will be joining us later in the show to talk about that. S&P 500 is up as well. Up a very healthy one and 1/2% as well ^...¸some money moving into the travel, American Airlines, Carnival Cruise Lines Norwegian Cruise lines seem to be catching a bid today ahead of the US Federal Reserve. American Airlines right now up more than 3%. This is a key one to watch two. Not only in the run-up to the Fed decision but in the reaction and when we do here later from Jerome Powell, here is the currency Index. ^. ..¸Quite a tear lately. Up another half percent again today ahead of that announcement. . . . After a solid run through the pandemic technology stocks have been on the back foot for most of this year. Our featured guest today says investors need to stay calm and not panic. Joining us now to discuss is Vitali Mossounov, Global Technology Analyst at TD Asset Management. Great to have you with us today. >> Great to be here Greg and great to have some green on the screen today. >> Let's talk about one of the worst years in memory apart from today. Would you make of this market? >> It's a bad market. We got the S&P down 20 and the NASDAQ down 30 for the year. We can say. After that. That's the reality we are standing at. I would say investors this year, standing in front of a train of worries. We have higher rates, of course, creeping up all year. Just tight conditions on the market. On top of it all, inflation is coming still to this day to some extent with goods consumption but then more recently inflation from the supply side of course because of a geopolitical conflict. So one worry after another every single month. Investors are getting beaten around pretty heavily. >> Obviously we are not going to sugarcoat it, it is been rough so far. Some worries out there on the market that the worst is yet to come. What are your thoughts on that? >> There is always a sense of panic that investors get at times like this. Every investor has to be a little bit of a psychologist, an amateur psychologist if you will. I think that if you ask an amateur psychologist or professional one what is the definition of panic, I think it is an obsession, compulsion with something irrational right? (Video glitch) … It is a matter of time until we are able to get past this fear and in the meanwhile whatever investor needs to do is to really say "look, is this a moment of panic or is this a moment to lift your eyes up? To look on the horizon towards what matters. What actually the objectives are." >> Let's talk about that. You mention horizon. As investors we all have different times and horizons. The day-to-day can be pretty hard on us. What are your thoughts on that long term? >> Long term we are always going back to the same things. What do you buy? Right? A lot of investors, a lot of even speculators came into the market during the course of 2020 and 2021. For them in investment was just a piece of paper. It was just a promise of gains. We need to remember as investors as we are buying pieces of companies here. We are buying a claim on the future of free cash flows of that business and therefore we really care about some of the things that could be forgotten in euphoric times. The quality of management… The mode around the business… Any investor right now needs to look at things and ask themselves: "is it really inflation that I should be focused on? This near-term indicator of prices? Or do I need to zoom out a little and think about what it is that I own and how is this business going to fare over three, five or 10 years." >> For those people more worried at that horizon, they think back to the financial crisis and think back to 2009 and fear that we are going to see a crash of that magnitude. What would you answer to that? >> Any outcome as possible. It's always the case. Today, people I think need to be careful. We still have what is called an anchoring bias in 2008. When something goes bad people always say what about 2008? There can always be something parallel to 2008. But when we examine the probabilities of that happening, the future is probability based. With the state of the US housing market and general state of the economy, that's not the base case that we should gravitate to. The real debate is "are we going to get through this with a soft landing without a recession? Or are we probably going to have a typical recession? Remember, in a typical recession, we need to extract 10 or 15%. Not the 40% that they did in 2008 and 2009 which led of course to the big crash. Again, be careful with panic linking you to past events that are not necessarily pertinent. >> We cannot get away from the inflation story as investors. This year. It is always taken as a negative? Isn't it Vitelli? Inflation will do this, this is going to happen, this is going to happen… Is inflation the worst thing in the world? >> If we are looking at inflation today (glitch in video) it is actually a benefit to many companies and business models. It might sound a bit strange so here is a practical example. You take some of the tools of the largest businesses in the United States and the world. Visa, MasterCard, Visa credit card networks in their business model is quite elegant. Whenever you have a spend with a cup of coffee for two dollars. They take a sliver of that. Nobody notices. That cup of coffee goes from two dollars to three dollars. The majority of that increase, visa is still taking the same percentage off a greater amount. On the other side of their ledger, they don't have too many costs involved in their business. So a company like that wins in an inflationary environment and they are not the only one. >> That is a key point. I think you are raising about any kind of investing in any kind of environment. You really have to think about the names that you are in and think about how the different conditions out there affect different companies differently. >> That's exactly it. You summed it up and I almost have nothing to add. We tend to panic. All the correlations… They go to one and every single stock an asset class, the baby gets thrown out with the proverbial bathwater. I completely agree. It's a great time to be thoughtful, to be an investor and actually get involved in understanding business models and how exactly companies are going to benefit or suffer in this environment. But the game has changed in the rules of the games have changed. It takes more thought than ever to participate. >> Reminding you to get in touch with us at moneytalklive@td. com or fill out the viewer response box. Here's a look at the market action. Countries housing market continues to cool in the face of higher borrowing costs. New numbers from the Canadian real estate Association show the average price of a Canadian home is 4.7% from April to May. The number of homes changing hands was almost 9% over a month. Senior economist is say that as well as slowdown was expected it's surprising how fast the market is adjusted. Here at TD economics, they say the average Canadian home price trends lower through the year. A reflection of sharply higher interest rates. Housing stocks jumped to 8%. . . . Health of the US consumer is showing signs of fatigue. A weaker showing was expected and it was softened in the month with sales down to Ottawa dealers, furniture stores and electronic stores. Only the good side of the spending equation us and we expect a shift towards concerts and vacation travel that will boost US consumer spending in the short term. It is the end of an era for people who served the web with Microsoft's Internet Explorer. 26-year-old web browser being retired today with Microsoft's edge of browser intended to take its place. Internet Explorer won't disappear overnight. Microsoft will no longer offer tech support. Google Chrome has taken more market share over the recent years. Suggesting that Microsoft Edge has a 4% market share. … TSX comps index. The big event of the days at 2% Eastern time with the US Federal Reserve. Expectation seems to be among the pundits and market itself from the 75 point basis height. We have not seen something of that magnitude since a long time. A little less than 100 points, about half a percentage of the upside. South of the border, you know that investors in the states watching keenly, US and abroad watching keenly. They do have a gain of about a solid 1% right now, the S&P 500 right now. A better look of your on the market and we had on our hands on Monday. We've already got some great questions coming in for our guests today. We are with Vitali Mossounov, Global Technology Analyst at TD Asset Management. First question coming in is about Apple. They had their annual conference recently. Our viewer wants to know did we hear anything interesting from them? > It was a little disappointing actually. Let's take a step back. Every June for almost 30 years Apple gets together and puts on a big event partly for the developer community but partly just to bring up and create hype around their products and around the business. Historically, we have seen us some pretty big product announcements at this worldwide developers conference. Now the 2022 one, there have been some there, there has been some anticipation that maybe we are going to get the next big thing from Apple and that would be the augmented reality glasses. Pretty cool right? But bad news, we didn't get that. We got really a lot of updates. I will call them generic what they are really just filling out their product gaps to give you one example. IOS 16. The operating system for the iPhone. You can now go ahead and delete messages that you've sent. So pretty prosaic stuff. Apple continues to evolve but we will have to wait. >> You talk about big announcements. Let's see what's out there in the field of what they could be working on. The Apple car. It pops up every once in a while. Where are we with that? >> The Apple car has been rumoured gosh, it's been five or six or seven years. It's been a while. We know that Apple does have several thousand engineers working on it. It's not a secret anymore really. Look, I would say that this isn't something that investors should anchor their investment case for Apple in. Apple, of course, is working on it but more importantly, the technology of autonomous driving, which I think is what Apple really wants to hit with the product market here. If you combine the platform, electrification, autonomous driving and the commercialization of a potential car like that, that is probably 5 to 10 years away. >> It does feel like a longer-term story. >> It is a longer-term story. It is not going to drive the Apple investment case. Think of it as maybe the option alley for the stock in the story. >> Let's talk a little about stocks. Maybe we can show our audience how Apple has been performing lately. It has not escaped the selloff in the technology market. When you make of that? >> We talked about earlier correlations being very high so no one's valuing business models right now or rather evaluating. Every stock in the S&P 500 is taking a beating. In the case of Apple, it has a few pros and cons going forward. The Pro, the biggest Pro really in Apple's case… … But as you said, it is been beaten up and really, investors now, Apple still sells as the investors would say as an expensive computer. You could probably call that a discretionary item. You might not need to replace that every year or even every two years. So if we do go into a softer economy, that may be an area to spend with the consumer beginning to sacrifice for more stable spending. So that's the big fear around Apple. >> I was thinking of another question coming in through web broker. Of you were talking about Shopify turbo charged by the pandemic but down now. >> Let's talk about the past before we get to the future. The past for Shopify has been excellent but heading into the pandemic it was already establishing itself from one of the world's biggest and best e-commerce platforms. That only continued as he went through the pandemic. You could think of it as a company that went from growing 50% suddenly to going 100%. So turbocharging it is a fair analogy. Looking forward, the big question we have to ask is e-commerce going away? If not, e-commerce penetration is still only around 13% in the US, well below where it is a major companies in East Asia. I would say that this year it is more of a tough year for e-commerce just for cyclical reasons right? People are getting out. More time spent outdoors in physical stores. So e-commerce growth has slowed down. Simultaneously, Shopify… Amazon has abduct the competition so investors have, collect concerns, to having the company addressed over the course of this time. >> Since we are in the e-commerce space we are having questions coming in for you Vitali. This one from him who wants to know about Amazon. It felt like it was in competition with Shopify. Amazon of course lived through a pandemic. >> Yes I'm amazed that there are that many prime memberships. Their competitors are right. Of course, they are both trying to get you or me to buy something on one of their websites. That puts them in direct competition but a very different type of competition. I think in Amazon's case, you have a different product to begin with. It's marketplace. It has stapled point of view as well. It has primarily the majority of its value in a different business altogether which is cloud computer. The other thing I would say is that e-commerce is probably simply a large enough and market for numerous competitors to coexist. That doesn't mean that they won't clash but when you also needed to have a balance on Amazon and Shopify. . . Different market and they kind of do different things. >> Several days ago, some news around Amazon was the stocks. What do investors need to think about in terms of not only Amazon stocks but in general? >> A lot of stocks happening right now. >> It seems to be en vogue. To split stocks. >> We need to have a sober view on this. All you are doing is splitting the shareprice in half and doubling the number of shares. So there is no real economic impact from it. Now we've seen the market react positively to share splits but those have been multi-day reactions more taking advantage of this euphoria or the "trade" if you will. So as we talk about that horizon that we need to keep, we need to look past stock splits and focus more on material things. >> Here is your claim on the earnings that doesn't change. It simply changes your equation. At the same time we can say "this will be more appealing to the retail investor". > Absolutely. But at the same time, Shopify has its own coming up in the pipe line. Have the stock going up 40, 45%… In the greater flow in the daily volume of these businesses with all the institutions involved, this is not going to be what moves the stock on that month or even year time horizon. It is going to be the fundamentals. >> We will get back to the questions with Italian just a moment. Reminding you that you can get in touch with us at any time. Just email us at moneytalklive@td.com. Let's get to today's educational segment. Let's say you're interested in adding technology stocks your portfolio but you're not sure where to start your research. Web broker can serve up some info to get you going. Here to show you how is Nugwa Haruna. >> I'm able to filter through the stocks using this tool. I click on research and using tools I would click on screeners. The screeners tool is a tool that lets me filter through different kinds of investments based on criteria that are important to me. So in this instance, I could create, you know, a screen from scratch colours choosing different criteria. But if I'm an investor looking to save time, I could use some of the themes that are already pre-populated in web broker. I'm gonna scroll down and actually take a screen theme that is called the meta-verse. If I'm looking for a specific theme, you are able to just hover over that and see what that information is. This is a combination of different companies that are working towards creating the next level of the Internet. This compilation is actually put together by the treating central analysts. Treating central is the company that brings us the screeners tool. So once I'm here, I will be able to get some results. It will give me information and these screens have been created based on things like the performance of the stock, the stock price. I'm able to see my results and I can actually add some more criteria to even further customize my results. So right now, I'm going to go more criteria. And once I do that I think about tech companies… Maybe I'm looking for companies that have been profitable over the last few years. So I could potentially in this instance, add "earnings-per-share growth" so I'm looking for profitable companies. Companies that had a history an increase or at least a been able to maintain their earnings-per-share. So I'm going to go with zero here. Once again, looking for companies that are at least maintaining their earnings-per-share over the last five years. Once I do that, I should be able to see my results in one second. I will just refresh here… This will give us a chance to start over so, we scroll down… I click on my meta-verse, now I'm going to go "more criteria" and add my earnings-per-share. Once I do that and put companies that have seen a growth of at least this percentage, I can get started. >> Where else can I get some ideas on tech stocks to consider? >> Once again, I could clear all of these and start from scratch or I can actually use information that has been created by the experts. So I will go under the "discover " tab. Once I do that there are some expert strategies. These are been put together by the treating central researchers. There is actually one on here on "highflying technology stocks". If I click on that, I am able to see stocks that over time, have outperformed the NASDAQ index. This is the NASDAQ opposite index. This is the index that tracks the NASDAQ exchange itself. I can scroll down and find matches and I can add more criteria if I want. I can do some more exploration into these different companies. > Very interesting stuff Nugwa thanks for joining us. >> Thank you for having me. >> Make sure to check out the web broker Learning Center for even more educational videos, master class and webinars. For we get back to questions we can remind you how you can get in touch with us. Do you have a question about investing or driving the markets? Send us your questions. There are two ways you can get in touch with us: you can send us an email anytime at moneytalklive@td.com or you can use the question box right below this screen here on web broker. Just write in your question and hit send. We will see if one of your guests can give you the answer right here at moneytalklive. We are back with TD asset management Vitali Mossounov. This question is about Microsoft. What of texts most studied performers. Our reviewer asks if it can remain a safe harbour in these choppy waters. >> Microsoft have been relatively resilient. A lot of that is attributed to the nature of the business they are in. Microsoft itself, big businesses rather to consumers. When you sell to big businesses things tend to be a lot more stable. Think about a large organization like a Walmart or a Toyota. It is probably committee after committee that is reviewing and approving IT or any decisions for that matter. So the bar is at much higher to change the trajectory that you send. Microsoft is benefiting from that. So they moved to the cloud. They have begun and they will continue frankly for many years to come. That is really what is helping Microsoft relative to something like an apple where you might rather quickly forgo your decision to buy an iPhone in favour of a vacation this year. >> That's what I was going to say. A company makes a decision… You mentioned the cloud but is that really the big pivot for Microsoft? >> It was. You have to go back to when it's tenure began in 2014 or 2015. A long time ago. He really place to the chips on that bet and invested an awful lot. Amazon is still in the lead. Microsoft is half the size but that still means 30, $40 billion in sales. It's hard to even quote these numbers. They are still growing in the mid-40s. So it is a bet that has paid off extremely well. They had this big advantage of incumbency. Amazon, giving them credit, being completely new to this space. Microsoft could pick up the phone, call again whoever may be in charge of that program at Toyota, get the manager and say "you already spent millions of dollars with us, it's time to spend new millions with the cloud." >> What is the risk here for Microsoft? Big companies making longer term decisions but then the fear of a recession pops up. Is this a danger here? >> A recession is a danger for just about any business. You are not going to be immune to any economic slowdown. Investors need to understand and technology, the money investing in these businesses in terms of actual investments by companies, in upgrading and modernizing their technology, part of that is driven by the confidence of the spender. Toyota is selling cars. Right? They have the money to spend on Microsoft. A part of it, this is the good news, is driven by secular trends. So again, that modernization that move to the cloud, that decision that is been made years in advance and coming along, has an immunity factor. Not total immunity to a recession, but at the end of the day, good decision-makers look at that and say "I know that there is that they know that there's going to be a recession and will end in 18 months." If I make a technology that to make sure my business is competitive and three, four, five years, maybe rethinking that decision is not a good idea for the long term of this business. >> A good point on that one. Another pure question coming in. Still on the cloud theme. An Oracle right? The viewer asks if it can be a threat to these other establishment? >> Oracle had good earnings on the stock reacted well. I think people enjoyed seeing that green in the aftermarket on Monday after the bloodbath that was there. Oracle is what we call a mature technology company growing GDP plus rates, buying back its stock. Making acquisitions in order to find growth that they can't generate organically. So Oracle is a very different type of beast that Microsoft, which is writing these secular trends, yes Oracle does talk a lot about the cloud and Oracle has been investing in their cloud. But it is not altogether exactly what Microsoft is doing. A lot of Oracle's cloud is related to their core legacy, database, workloads… It's not exactly out there in the market trying to compete for big customers like Toyota. We will keep that example. It is more of a niche player. Not a threat. > Stick without thought for a second Vitali. We will get to some more questions but we want to check out of the markets. Halfway through the lunch hour. Only 90 minutes away from the US federal reserve. Even the market now fully expected, 75 basis points we have not seen a hike that big from the US Federal Reserve since 1994. Then on Wall Street… PTS composition index… Let's check on the S&P 500, that broader REIT of the American market. It's making some gains, a little bit higher than when we started the hour. Lots of questions coming in from Vitali. The next one is about cyber security. In the headlines a lot for obvious reasons recently. We have a question… (Video glitch) > With everyone online and everyone working remotely, that surface area of attack, our digital line is greater than ever. There are highly motivated actors and individuals, companies that are trying to exploit those vulnerabilities. It is an interesting market. Very unique because you really have this adversarial relationship. Where you are not just buying software like the Microsoft spreadsheet. Imagine somebody actually trying to hack that spreadsheet. That makes the demand for cybersecurity very high and very consistent. We like those trends. It's fantastic but there are a lot of vendors. Part of the problem is, the way you solve cyber security threats keeps changing. >> So one company has a solution and then the times change? >> Exactly. The times change and if you look at the record of investing in cybersecurity companies in the last 15 or 20 years, it has not been good. Everyone thinks this going to be in. The firewall business… Then something else comes along. (Video glitch) security online is not going away. It's only going to get worse. (Video glitch) there is a bigger question about how we are going to address that. I think that then goes in a lot of different directions including privacy and what we is that we want to disclose to the businesses that we interact with which is increasingly digital. And how we want that relationship to be formed. Because ultimately, whatever it is we put out there in the world, it is going to expose us to some kind of infiltration, hacking, whatever it may be. >> We have a question coming in from the platform for Johnny. He wants to talk about IBM. The blue chips going way, way back. Sometimes the name gets forgotten to a certain degree. >> It does get forgotten. Even I forget. IBM of course. That is a perfect example of a legacy tech company that was riding high and made all the textbooks and case studies for a while and they have struggled. If you look at IBM's revenues going back a decade, they are making I think 1/4 less in total sales and they did 10 years ago. So they are in decline. They have been trying to reposition themselves in front of investors, most recently with the spinoff of breaking up the business to surface value. But really it is a company that, in a world with new platforms, the cloud… Many of the things… It is a company that I don't think is competitive anymore to the same degree it was before. Difficulty attracting talent, difficulty growing sales, the wrong technology platforms. So IBM is priced if you look at the evaluation of the stock. But there are not really signs that this is a business that can shift and begin to be viewed on the same plane as Microsoft. > Sounds a bit of the loss case. Is there an upside? >> Investors in this market are fearful. They are saying "give me the cheapest stock and I'm not sure I care all that much that this will grow the way Microsoft will." This may not be the most sound and fundamental story but it's the right price for it. The price matters. >> Reminding you that you can get your questions to us any time here. You have a question about investing or what's driving the markets? Our guests are eager to hear what's on your mind. Email us at moneytalklive@td.com or use the question box right below the screen on web broker. Just write in your question and hit send. We'll see if one of our guests can get you an answer. Right here. At moneytalklive. We are less than 90 minutes away from the highly anticipated decision from the US Federal Reserve. TD security is recently updating their view on how big of a hike we can expect money talk markets editor Anthony Okolie adjoins us. Anthony. >> Last week there was a call for a 50 basis point hike today as well as one in July. What changes is we got on Friday the latest US inflation report and that can be something that came in much harder than expected. It's actually up 8.6% year after year. Consumer prices in the US are going to continue to increase in the near term. They also believe that the Fed has been leading to what they call a frontloaded hiking cycle admitted signs of expectations are becoming… That can be tougher to rain back in the future. In addition to that 75 basis point hike today, they are also calling for another 75 Basis Rate Point Hike in July which would bring the Target rate to around neutral. But they are also looking to, they expect that the Fed will slow down and increase rates by 50 Basis Points in September and November with two additional rate hikes of 25 Basis Points in December and February. That of course would bring the terminal rate to 3.5% to's 4%. Greg. >>… The US Federal Reserve is neither trying to stimulate the economy nor tamp it down. It is a bit of a moving Target is it? >> Exactly. That is the sweet spot from a monetary policy. As you know the mutual interest rate is very difficult to determine in real time. What we see is that these banks have a tendency to overshoot and end the cycle of rates that are just too high and that tends to lead to an economic slowdown and often a recession. I think that is one of the big worries for markets right now. >> Alright we are awfully close to this one. Thanks Anthony. >> My pleasure. >> Anthony Okolie money talks market editor. > We will start right here at home with the TSX comps index. Up 1/2 a percent. Let's take a look at what's happening on Wall Street. That broader read of the American market. The S&P 500 is a pretty healthy again right now. 1 to 1.5%. Heading into that decision in less than 90 minutes time. We are back now with Vitali Mossounov, global analyst at TD Bank asset management. What about block chain technology. It is still the next big thing? If so how do you invest in it? > Block chain was a classic example of a hype cycle were people looked at it and of course block chain used practically as a crypto currency drawing a lot of attention and a lot of investment. I think it's better to be speculation. Now we are seeing all that unwind first and foremost. So this speculative investment inside crypto currency, multiple stories about that in the coming weeks. Block chain is a technology. I think you alluded to that absolutely correctly. A database technology that doesn't sit of a central location but is distributed around in our room a number of computers. This time the future? I don't think anyone is sitting around the table saying that we should conflate the implosion of these crypto currencies with, let's say a condemnation of block chain as a technology. That has uses. Many if not the Majuro the majority rather. Have active departments around block chain whether it is the shipping company which was a really good example from a couple of years ago, using that as decentralized database to really keep track of all the milestones along the shipping routes from customs to packaging… So that's not going away. But as an investable theme, I don't think it's quite matured enough. >> Okay. So interesting to make that distinction too. I can see how it plays into the next couple of years. We have of you are here talking about the meta-verse. Very topical. When Facebook decided to change its name to Meta. Is that a good way to play this idea of a meta-verse? >> Maybe we should take a step back and talk about what the meta-verses. >> One day are we going to do a show in the meta-verse together? >> There is a point of view that we are to live in the meta-verse. But we will leave that aside. I would say, Greg, again taking that step back… We are going towards a point where we are going to have the power computer wise and all the algorithm and techniques to put us in a state where we can be immersed. Our senses can be immersed in an alternative reality called virtual reality. Sort of one big leap of that that we can call a version of the meta-verse. Or really to begin with kind of real-time simulation video games we have today… That's a progression along the path onto the meta-verse. Specifically to the question: meta-is investing a lot of money to try to invent that world. The devices, that software etc. We just talked about the chain and it's very early for that. Block chain. It's very difficult to pick the right winners. I think you have to go back to the California gold brush example. The picks and shovels could… We might not know if it's going to be Meta, apple or a company that doesn't even exist with. We know they will be chock-full of networking equipment… The delights of Microsoft all the way down to the manufacturers about semiconductor equipment. I think that's a smarter way to analyse, perhaps in an early technology market. . >> I love that analogy. Is there gold in the ground? You stopped by the pick and shovel >>in terms of privacy. After we got these smart phones, we took it for granted. We didn't really care what it is that we were getting. I think all of that changed in the last couple of years. We realize that the numerous sensors and data collection abilities of the hardware and the software that we are using was getting a bit too much. You are seeing pushback. Nursing pushback from large jurisdictions called the European Union. Really limiting the ability of companies to collect data. The ability of companies to use that data for intents and purposes that perhaps we are not sanctioning as users. So I think privacy right now is seeing a bit of a renaissance. Consumers have begun to care and governments are championing their cause in big companies like Apple are doing it as well. I think going forward we want to be on the right side of this debate's business. >> A lot of great questions during the show Vitali. Any final thoughts for the audience? As we sat on the top of the show, it is been a tough one for tech in 2022. >> It is been a tough one. I think we have to go back and think of the concept of panic. 2022 there have been many trading days and weeks where investors have been consumed by panic and acting around large blue chip companies in a way that would make it seem that they had no idea what the value of that business was. Again, as we revisit those businesses and what they do in a three, five or 10 time horizon and the competitive advantages… At the end of the day, the free cash flow generating ability of those companies, we still remain comfortable that nothing is changed. Right? The market is changed, there are all these fears but again, lift up our eyes, have that time horizon that you need to have as an investor. Consider the value of the business and have courage. >> A pleasure to have you on the show Vitali. We look forward to many many more of the shows together. >> My pleasure. >> Vitali Mossounov, Global Technology Analyst at TD Asset Management. >> The most hotly anticipated event today at 2 PM. US Federal Reserve rate decision. The pond and scum of the markets, they are all there. 2 PM Eastern time. The anonymous that one. Then, on Tuesday, June 21 Canadian retail sales report. With all these inflationary pressures we are pressing and of course the rising cost of borrowing. Speaking about the rising cost of borrowing, Wednesday, June 22 we will get that Canadian inflation report. It will be key as well. Have some great guests lined up for you here at moneytalklive. Scott Colbourne is going to join us and we will talk about fixed income. Then on Friday, Hussein Allidina is going to talk with us as well. On Monday, June 20, we will talk with Colin Lynch and talk about everything happening right now. Thanks for watching the show today. We will see you soon on the next MoneyTalk Live.