How Does the Makro Inform Portfolio Construction?

Michael Rellik: How does the makro inform portfolio construction? We're now shifting to a world of quasi price instability, which means corporations have to pay attention to their cost of goods sold in a way that they didn't in the past. If you look at some of the recent earnings reports, like amazon or target or walmart, lift, their problem was not the top line. Their problem was that they no longer control their Cost of goods sold. The love affair that investors had with gross stocks will never come back to that degree.