FOLLOWING. WE MENTIONED SHOPIFY EARLIER, COULD THIS DYNAMIC BE A SIGN JOINING US IS DAVID BONESEN, CHIEF INVESTMENT OFFICER AT THE BONSON GROUP DO YOU HAVE CONCERNS ABOUT THE MARKET BROADLY SPEAKING? >> FIRST, I'VE BEEN MISSED, WELCOME BACK. >> THANK YOU. >> GROWTH IS WHAT YOU ALWAYS WANT TO INVEST IN, IT'S JUST THAT THE GROWTH YOU'RE PAYING FOR YOU'RE HAVING TO OVER PAY, AND WHAT A LOT OF THE NAMES WE'RE TALKING ABOUT EXPERIENCING WEAKNESS, THEY CAN'T BE CALLED GROWTH STOCKS, WHEN IT IS ONLY THING THAT'S GROWN IS HOW MUCH MONEY THEY LOSE. BEYOND MEAT IS NOW A $7 STOCK, AND EACH YEAR THEIR LOSSES WENT HIGHER THAT'S WHERE SOME OF THE QUALITY OF THE GROWTH NAMES IS NOT EXACTLY THE SAME FROM SOME OF THESE BIG TEMPERATURE NAMES THAT ARE REALLY BIG GROWTH, REALLY BIG MONEY MAKERS, BUT I SIMPLY CRITICIZE THAT PRICE, THAT ARE VALUATION. >> MAYBE THERE'S TWO THE OTHER SIGNED WOULD BE IF THE ECONOMY IS GROWING SO THAT WOULD OBVIOUSLY BIG A BIGGER PROBLEM FOR THE MARKET. WHICH OF THE TWO, DO YOU THINK IT IS? >> I THINK IN THIS CASE IT'S SIMPLY THE VALUATION IN OTHER WORDS, BOND YIELDS HAVEN'T REALLY MOVED FOR ABOUT A YEAR IT'S GONE A LITTLE HIGHER, BUT IT STAYED HERE IN THIS 4.5 RANGE, SO THAT VALUATION ISSUE GOOD GROWTH RELIES ON DIRECTION. THE DIRECTION HASN'T WORSE JD. IT'S JUST FLOODLINED IT'S NOT LIKE YIELDS ARE STRONGLY HIGHER 9 P/E IS ACTUALLY HIGHER. THE MARKET MULTIPLE IS 21, 22 SOMETIMES FORWARD EARNINGS, SO I THINK IT HAS TO DO WITH THE FACT YOU GET TO A POINT WHERE IT ISN'T A GOOD VALUE PROPOSITION TO BUY SOMETHING GOOD TODAY AT AS MUCH AS A HIGH PRICE, WITH THE EXPECTED RATE OF RETURN IS SO MINIMIZED I THINK THAT'S THE ECONOMICS RUN INTO >> I MENTIONED UTILITY STOCKS, WHERE ARE YOU MAKING THE MOST MONEY TO FIND SOME STOCKS WHERE YOU CAN GET A GOOD VALUATION ON A PULLBACK WHAT ARE YOU UP TO >> WE'RE DIVIDEND GROWTH INVESTOR, SO WE TEND TO BE BOTTOM-UP FOCUSED. THEY'RE ALL DONE VERY, VERY WELL FOR US, AND FRANKABLY THE BLENDED MULTIPLE IS LESS THAN 15 1/2 TIMES, SO I DON'T THINK THERE'S THE SAME VALUATION WITH A LOT OF THE RAG AND ESPECIALLY DIFFERENT-ORIENTED SECTORS ENERGY TO ME IS STILL A COMPELLING SPACE 40% RETURNS YEAR OVER YEAR CAN'T HAPPEN ALL THAT OFTEN, BUT PEOPLE SAY THE DEFENSIVES ARE A BAD SIGN, BUT CONSUMER STAPLES, UTILITIES, HEALTH CARE, REAL ESTATE ALL TRADING DONE WOULD BE A BAD SIGN THEY'RE NOT. I THINK IT'S A BOTTOM-UP MARKET IN DIVIDEND GROWTH COULD UTILITIES, AS EVERYONE IS SAYING, KIND OF AN ELECTRICITY DEMAND SECULAR WINNERS AS OPPOSE TO DO A SIGN OF A SLOWING MARKET >> YES I THINK AMERICAN ELECTRIC POWER, AEP, HAPPENS TO BE ONLY THE GOOD UTILITIES WE OWN, WE HAVE A GOOD POSITION IN IT, BUT THAT'S NOT A COMMENT ON THE SECT OFF. YOU CAN APPLY IT TO OTHER THINGS BESIDES UTILITIES. IT'S THE THINGS THAT PEOPLE HAVE TO HAVE, NO MATTER WHAT, WHERE THERE'S A GOOD BALANCE SHEET, GOOD RECURRING CASH FLOWS. YOU DON'T HAVE TO WORRY AS MUCH ABOUT WHAT BOND YIELDS ARE GOING TO DO, WHAT THE FED WILL DO. IT
