 All right another North Korea missile launch, but stocks are not reacting here now is Andres Garcia CEO of Zoe financial So Andres investors clearly are classifying this as a non-issue the markets aren't really reacting This is the second missile launch over Japan of course in two weeks. So clearly the provocations are increasing Yeah, I look at the situation North Korea more as a global citizen because it's very hard to Hedge or have an edge of how the markets you point are gonna react to each missile launch So I try to take a step back and try to understand it from some historical context of how we got here And if there's other examples in the past that we kind of use as guidelines Well, and you actually point out that China was sort of like this, you know in the 50s and 60s. Is that right? Yeah, so I think people forget that prior to 1969 China was for other user lack of a better word a rogue state and once it had a hydrogen bomb It actually now kind of asserted its independence both from the Soviet Union and in essence from any outside pressure And just three years later Nixon was visiting China and little by little we actually open relations with a country that just a few years earlier Was considered a rogue state and look at them now They're now the world's second largest economy, but is the worry with North Korea not so much a deliberate war But some sort of policy mistake on either side absolutely That is in my opinion the biggest risk is on force errors Right if you're playing a game of theory where both sides are rational North Korea wants to assert his presence from a global stage and say we don't respond to Russia We don't respond to China. We don't respond to the United States That doesn't mean that there could be some on force errors in the way and that is obviously something as I said that I Can't hedge and therefore I don't focus as much So isn't it strange to have all these provocations, but yet stocks are at record highs I mean we're just points away from 2,500 in the S&P 500. We just got almost there a couple of days ago So what do you make of these record levels? It's really interesting because even prior to North Korea becoming kind of the topic from a geopolitical standpoint If you look at geopolitical uncertainty index here in the United States It was already moving up higher with Trump being elected even even though in essence We're uncertainty even though the markets kept going higher So I think the market continues to focus on earnings Global economic momentum that is moving so we can go higher from here is what you're saying. Oh, oh, actually I'll take the step back short term. I think momentum will continue to rain When you look three five years out, I am a little bit more Cautious about the US equity market that long term you're cautious. Yeah. Yeah I think the evaluations are getting way ahead of themselves and as I said short term that could still continue to happen But three five years out I prefer looking at emerging markets next in line European equities and then the US equities But still maybe has some exposure to the US. Oh, absolutely, right? It's a US investor. You have some some exposure This is a question of how much winning your asset allocation you would have and I think from our perspective It's time to kind of trail some of that back. All right trim some of those profits. Okay, Andres Garcia. Thank you so much All right, I'm Scott Gam and you're watching the street