There's definitely some challenges that the market's been working through. We're in kind of a much needed consolidation phase, I would say. We have a market pulse index that we like to look at, which is a sentiment indicator. It looks at six different signals across the market and kind of assesses risk tolerance. Risk taking into July was huge. Everybody was piling into risk assets within equities. So now, I think we're getting a little bit of a breather from that over the summer. And again, it's kind of just a much needed consolidation and a little bit of a blow -off steam. But longer term, things still look OK. So what's interesting today is that yields are jumping higher again. And I kid you not, dot, dot, dot, Canadian inflation. Really? So that literally is moving the market. Canadian inflation came in hotter than expected. They've been the central bank that suggested a pause first, and they kept hiking after that. And that is definitely moving the bond market. Five -year Treasury yields are rising to the highest or near the highest since 2022. Is a month of inflation priced into equities? I don't know about it being priced into equities, but certainly a lot of it already is priced in. So we run our fair value model on the S &P 500 and Russell and rates are a key component of that. And multiples, while a little bit high, if push you rates even a little bit higher than maybe the Fed's going to go on either model, not there's a lot of downside to stocks. So a lot has already been priced in. that's So a good sign, right? On the flip side, one of the things that we're closely watching as well is the yield curve, right? So the two's is the 10 -year minus three month curve. And can that eventually be supportive for maybe financials as that starts to steepen off of its low. On a factor side, are we big cap, small cap, momentum? What are we doing here at this stage of the market? So it's interesting that you bring up momentum. actually We put out a report last week on dispersion. See Paul reads. Paul pays attention. This is the takeaway. But basically we were watching stock dispersion. So within the S &P 500 and the Russell 2000, basically what's the standard deviation of returns across stocks in that index. And it's pretty high, especially in large caps. So we're in the top quintile of dispersion in the large cap market near in the Russell 2000. And when that's at a high level, kind it of signals what we call a momentum crash could be on the way. Now momentum crash isn't something to be totally worried about. It's usually that the bottom end of momentum, so the stocks that haven't worked as well start to pick up. So quite frankly, that could be a welcome sign for the market if some of the stocks that haven't gotten wind start to get wind and broaden out the market rally. 4 .5 % Paul, that's what I'm talking about. Five year yields hit that number, since 2007. Five year yields. I didn't know we were supposed to follow the five year. I followed the two year in the ten year. Now I have to do the five year as well? Whichever is going to make the best superlative, I think you can just take it. So I think it just depends. I think what this does point to is when you talk about momentum, we price in a lot when it comes to the Fed. And I'm just wondering where are we cheap enough that you need to start looking at pure valuation versus the macro headlines. So valuation is actually really interesting across the S &P 500. If you look at it versus a five year pre -pandemic average, which is how we like to look at it, just because 2020, 2021, obviously a lot of easy money in the system pumping valuations higher. But if you look at it that way, tech and discretion are the only sectors the in S &P 500 trading at a premium right now. Everything else has had a discount to that five year average, led by things like communications, financials, real estate. So there's plenty of discounting in the S &P 500. If you look at it on the Russell 2000 side, there's a little bit less. We tend to look at it on a price to sales basis instead of price to earnings basis, but still than more half of the sectors in the Russell 2000 are discounted. So plenty of discounts out there. All right, Michael, thanks so much for joining us. Michael Kasper, Bloomberg Intelligence Equity Strategist, joining us here to give us some thoughts on these markets. Again, the S &P 500 off about two tenths of 1%. Let's head down to Washington, DC. We'll get world and national news it. with Paul Sweeney, there were shouts of freedom and tears of joy as five Iranian Americans have been held in Iran for years, returned to US soil this morning after a prisoner swap at the White House hopes will lead eventually to further talks on Iran's nuclear program. Siamak Namazi was first off the plane at Fort Belvoir, Virginia. He had been held for eight years. We've taken for granted having a family together. We've been apart for eight years and finally we're together. Finally, we're together, says Siamak Namazi. And while President Biden allowed the release of nearly billion six dollars in Iranian oil assets to secure these Americans' release, White House national security spokesman John Kirby says this does not change the US posture against Iran. Last Friday, we designated some additional Iranian entities for the way they treat their protesters. And just yesterday, we designated more entities for wrongful detention. So we are still going to put sanctions on Iran as appropriate. John Kirby at the White House speaking there on ABC's Good Morning America. Wall Street Journal reporter Evan Gershkovich has been back in a Moscow courtroom today. He is appealing an extension of his pretrial detention that's set to keep him behind bars into November. Gershkovich has been held since March on espionage charges. The US has said he is wrongfully detained in Russia. India has expelled a senior Canadian diplomat and is accusing Canada of interfering in its internal affairs. This comes a day after Canada's Prime Minister Justin Trudeau took to the floor of the House of Commons in Ottawa and accused India of being involved in the assassination of a Sikh independence advocate in British Columbia. Earlier this year India calls that allegation absurd. President Biden speaks at the UN General Assembly next hour and he'll be looking to build more support among world leaders for Ukraine in its war against Russia's invasion. A senior State Department official speaking on the sidelines of the UN gathering says the US and its G7 allies understand that the war will continue in the medium to long term and the planning needs to reflect that. Bloomberg Radio will have live coverage of the president's remarks. They're set to begin around 10 a .m. Wall Street time. Live from the Bloomberg Interactive Broker Studios as Global News 24 hours a day powered by more than 2 ,700 journalists and journalists in over 120 countries. I'm Nathan Hagar in Washington. This is Bloomberg. Paul and Alex. Nathan Hagar, thank you so much. We appreciate that. Thank you. It is. Blue, you know. That's usually a Matt Miller thing because apparently in Europe they do it for you, but... What? Well this is a really Rich Truman thing then. Like if he's not doing it for us, that's the problem. Well no, I like to do my own buttons.