gary bradshaw is with usgh to he's portfolio manager. he's joines to talk to us about it. i know you are very much value oriented even with gains we've seen over the last decade in the small caps. you still feel thaty are of value -- present value right now because of the trade tensions, right? >> well, you're right, bill. the small caps are domestic, but more importantly, they put up fabulous earnings this last quarter. earnings forhe russell 2000, the stocks that it reported have been up 48% this year -- or, excuse me thisuarter that we're in right now and we expect the third quarter for them to be up 36%. >> okay. >> so earnings are drivingsm th l cans at the hodges funds we love the small caps. they traded about 22 times nt year's earnings. growing the way they're growing, we don't think that's too expensive. they're domestic so tariffs don't affect themoo much and we think they'll continue to shine. ni you gave us some names of some of the com that you like and you also make the point there are simply fewer companies that are publicly traded right now so it's kind of

gary, i want to tall y-- call yo terry bradshaw, but i won't do it welcome to both of you what are yourughts on the market and its staying power >> so overall, we're moderately bullish. i mean, it is always great to have headlines of where we're hitting new highs all the time we don't see any reason why that should turn around any time soon corporate profits up 17% really healthy that'll slow going into next year we think margins are still constructive with a lot more cash in their pockets, companies are looking at increased buybacks. we think it'll be about $1 trillion in 2018, increasing dividends. overall, we're constructive. we're looking for signs of rising risk in the market. >> gary, you are particularly enamored with small cap stocks why? >> well, tyler, primarily because earnings have been fabulous just this quarter that we're in, earnings in the small cap space have been up 48% we think in the next quarter, they'll be up 36%. small caps have done well this year a lot of m&a activity. margins continue to improve. revenue has been up strong we're optimistic at the hodges small c