david sowerby joins us. what are you expecting from this fed? david: that they are still behind the curve. i'm in detroit and the last two years they have been running money supply up 40%. they have been going 85 miles per hour in the left-hand lane and the need to catch up and catch up quickly. tom: i look at where we are and gina martin adams looking much more large-cap. what is the history of what small-cap does when we get this kind of acceleration in bond yields? david: it matches the story of large or small, but when the economy is growing faster than expected, when two thirds through the corporate profits and growing, it is good small-cap backdrop because on evaluating basis they have only been this cheap for the large-cap siblings 10% of the time and the next 12 months suggest that small caps can outperform large caps five 5% to six percentage points. tom: when the fed finally a cts, how do equities react? you have institutional coverage in michigan. what happens once the fed acts? david: it is a recognition that the fed's number one vis

david sowerby joins us now. good to speak to you.u can manage money for and i cannot manage money trying to predict global politics. i promise you i will be painfully wrong. it comes down to what is the fundamentals of the company i own can they create shareholder value. anna: what are the best opportunities you see in this market if that is the holy grail? david: i will say quickly it is interesting, i came on listening to the conversation. people are claiming to be worried the fed will overdo it on the tight inside. money supply has been growing, the fed has not even taken the playing field yet with a tighter episode and we are talking about whether it will be too aggressive. we have to still worry about inflation as the biggest threat to markets because at an inflation rate persistent at 4% to 4.5%, it becomes problematic for stocks to be your best inflation hedge. anna: how many hikes are you factoring in from the fed? the other possession of markets is whether the fed will play this right. how many hikes are you factoring in piv