let's bring in richard bernstein. elcome, first of all, you point out accurately that there are two things that really drive valuations. one is profits and the other is interest rates and both are moving in the wrong direction for equities >> right so, tyler, first, condolences about uva. >> yeah. >> i know you're crushed life goes on, bud. >> it's all right. >> yes, earnings and interest rates. so i -- i'm not quite sure what people would have expected to happen in the market and to happen to the banking sector when we're in an environment where the fed is raising rates and profits are decelerating if you had to choose, tyler, between the fed raising or lowering rates, profits accelerating or decelerating, i doubt you would choose the combination of the fed tightening and profits decelerating that's what we have had. that's the environment where you get the most volatility in the equity market. that's when defaults start going up in the bond market. it is when banks start having trouble. and we're seeing all of the ab

sector will start deflating again in q-2 dan suzuki is the deputy chief investment officer at richard bernstein advisers they made their tech bubble call almost two years ago then it popped and you guys were looking smart, and now -- what do you think is happening? >> not so smart anymore? >> yeah, i think this is to be expected if you go back to the last tech bubble we had, you had 16 different double-digit rallies over the 2 1/2-year period this is to be expected people don't give up the stuff they've known to come and love that dominates their portfolios when you're sitting on tons of capital gains. i think they're going to fight that and i think tim said , the fact that people want to just go back and our the stuff that's worked over the last cycle. people don't want to go where the future leadership is going to be, which is not where the bubble is, that bubble is still deflating. >> and when you say bubble, you're putting the megacaps in there, too >> absolutely. >> all the leaders >> yeah, i'd say -- the leaders over the last ten years is really driven by u.s. large cap growth u.s. megaca

in the next hour, richard bernstein thinks this is a new regime.hese fair market is over. and we will catch up with sarah hunt on energy after the opening bell. lisa, the fate of this program is in your hands the next 35 minutes. lisa: is going to be long and variable lags. jonathan: this is bloomberg. ♪ what do you get from the morgan stanley client experience? listening more than talking, and a personalized plan ♪ to guide you through a changing world. ♪ jonathan: -- tom: lisa abramowicz with tom keene, the 10 year 4%. 4.91% on the two year yield which leads us to the economics of the moment. i'm riveted not by claims, by unit labor costs. michael mckee will brief us here is best as he can. we are waiting for the data. michael: it doesn't happen until 8:30. we do have a unit labor cost number coming in and it is very strong. we have the claims number coming in. i will give that first. we will keep tom in suspense. 190,000. we continue to see jobless claims not rise because the economy is slowing but fall because the economy is doing who knows wha