1
00:00:05,800 --> 00:00:08,360
Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm PIM

2
00:00:08,400 --> 00:00:11,200
Speaker 1: Fox along with my co host Lisa A. Brahmowitz. Each

3
00:00:11,240 --> 00:00:14,440
Speaker 1: day we bring you the most important, noteworthy, and useful

4
00:00:14,480 --> 00:00:17,079
Speaker 1: interviews for you and your money, whether you're at the

5
00:00:17,120 --> 00:00:20,360
Speaker 1: grocery store or the trading floor. Find the Bloomberg p

6
00:00:20,520 --> 00:00:26,720
Speaker 1: m L Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com.

7
00:00:26,800 --> 00:00:29,400
Speaker 1: Right now, we are broadcasting live from the Commonwealth Financial

8
00:00:29,400 --> 00:00:34,519
Speaker 1: Network's annual National Conference of Advisors from the Marriott in Austin, Texas.

9
00:00:34,560 --> 00:00:37,080
Speaker 1: And PIM we've been talking about the dollar revival. The

10
00:00:37,280 --> 00:00:41,120
Speaker 1: flip story to that is the significant decline in emerging

11
00:00:41,159 --> 00:00:43,600
Speaker 1: market currencies, and to talk about that, let's bring in

12
00:00:43,680 --> 00:00:48,280
Speaker 1: Damian sass Our, chief Emerging market credit tragist for Bloomberg Intelligence. Damien,

13
00:00:48,320 --> 00:00:50,280
Speaker 1: I'm looking right now at the biggest one day drop

14
00:00:50,320 --> 00:00:52,720
Speaker 1: in the M S c I E M Currency Index

15
00:00:52,800 --> 00:00:55,600
Speaker 1: since early October and more than a month. Is this

16
00:00:55,760 --> 00:00:58,640
Speaker 1: all just the dollar or is there something else going

17
00:00:58,720 --> 00:01:02,560
Speaker 1: on with a rethink of investing in the developing world? Yeah,

18
00:01:02,560 --> 00:01:04,120
Speaker 1: at least you no, I think there is a little

19
00:01:04,120 --> 00:01:05,760
Speaker 1: bit of something else going on here. I mean, if

20
00:01:05,760 --> 00:01:08,360
Speaker 1: you just look back at was a test of what's

21
00:01:08,360 --> 00:01:11,800
Speaker 1: called the external durability of global economies. And I think

22
00:01:11,840 --> 00:01:14,360
Speaker 1: the way things are shaping up here, you know, heading

23
00:01:14,360 --> 00:01:17,679
Speaker 1: into yourn for is you know, with with a lot

24
00:01:17,680 --> 00:01:19,959
Speaker 1: of shorts and liquidity metrics kind of rolling over. And

25
00:01:20,000 --> 00:01:22,920
Speaker 1: by that I'm talking about US liquidity metrics, you know, um,

26
00:01:23,080 --> 00:01:26,479
Speaker 1: you know, oh I s t to libor and and

27
00:01:26,520 --> 00:01:28,800
Speaker 1: TED spreads and all of this. I think we were

28
00:01:28,800 --> 00:01:31,040
Speaker 1: maybe setting up to see a test of sort of

29
00:01:31,040 --> 00:01:33,120
Speaker 1: the structural fiber of financial markets, and I see the

30
00:01:33,120 --> 00:01:35,520
Speaker 1: credit markets as we get into the new year may

31
00:01:35,600 --> 00:01:37,080
Speaker 1: very well be tested for the first time in a

32
00:01:37,160 --> 00:01:42,720
Speaker 1: post TFC more tightly regularly. Hold on a second. So

33
00:01:42,760 --> 00:01:46,920
Speaker 1: great financial uh, great financial crisis. H Hold on a second.

34
00:01:46,920 --> 00:01:49,000
Speaker 1: This is what you're saying is really important, and I

35
00:01:49,040 --> 00:01:52,480
Speaker 1: want you to sort of articulate this. You're concerned about

36
00:01:52,720 --> 00:01:56,040
Speaker 1: the sustainability of current credit markets given some of the

37
00:01:56,160 --> 00:01:59,440
Speaker 1: stress metrics that you're seeing build right now. Is that correct?

38
00:01:59,600 --> 00:02:01,840
Speaker 1: That's art I think the said unwind is crowding out

39
00:02:01,880 --> 00:02:06,480
Speaker 1: competing asset classes. Damian Sassaur what is going on in

40
00:02:06,600 --> 00:02:10,720
Speaker 1: Mexico and we see a stock market that is lower

41
00:02:10,800 --> 00:02:15,120
Speaker 1: by about two right now and the new president on

42
00:02:15,320 --> 00:02:21,000
Speaker 1: low this is not reassuring at least two investors. What's happening. Yeah,

43
00:02:21,040 --> 00:02:23,000
Speaker 1: you know, I mean we're gonna see a lot of

44
00:02:23,200 --> 00:02:25,960
Speaker 1: credit differentiation here, I think as we as we get

45
00:02:26,000 --> 00:02:28,280
Speaker 1: into the end of the year. I mean, you know, look,

46
00:02:28,320 --> 00:02:30,920
Speaker 1: Trump has gone some way toward unifying forces against the

47
00:02:30,919 --> 00:02:33,040
Speaker 1: dollar and against the US, from China to Russia, to

48
00:02:33,080 --> 00:02:34,640
Speaker 1: France and Germany, you name it. But I think we're

49
00:02:34,639 --> 00:02:36,959
Speaker 1: going to see foreign governments pay a lot more attention

50
00:02:37,520 --> 00:02:40,120
Speaker 1: to currency denomination and the PACEO is then you know,

51
00:02:40,400 --> 00:02:43,880
Speaker 1: it's the most liquid emerging market currency out there, and

52
00:02:43,919 --> 00:02:45,600
Speaker 1: I think people are going to use that either as

53
00:02:45,639 --> 00:02:48,520
Speaker 1: a head vehicle or a way of speculating against the dollar.

54
00:02:48,680 --> 00:02:50,480
Speaker 1: So I mean, you know, there's a little bit of

55
00:02:50,520 --> 00:02:52,520
Speaker 1: that going on. And I think, you know, Mexican equities

56
00:02:52,520 --> 00:02:54,160
Speaker 1: and a lot of other Mexican assets are just really

57
00:02:54,240 --> 00:02:57,600
Speaker 1: kind of um, you know, a byproduct of that, but

58
00:02:57,840 --> 00:02:59,919
Speaker 1: you know, just kind of taking that that that fall

59
00:03:00,000 --> 00:03:01,639
Speaker 1: it a little bit, you know, I think I think

60
00:03:01,680 --> 00:03:03,560
Speaker 1: the real themes as we get into the new year

61
00:03:03,560 --> 00:03:06,919
Speaker 1: and emerging markets PIM you know, China struggling to find

62
00:03:06,919 --> 00:03:10,120
Speaker 1: a way to fix its slow growth problem, and they're

63
00:03:10,120 --> 00:03:11,680
Speaker 1: going to be hard pressed to find one that doesn't

64
00:03:11,680 --> 00:03:14,600
Speaker 1: involve taking on additional leverage. Um. You know, if you

65
00:03:14,680 --> 00:03:17,000
Speaker 1: just look to Russia, now that the midterms of behind US,

66
00:03:17,280 --> 00:03:19,240
Speaker 1: we have new sanctions that are expected soon and then

67
00:03:19,280 --> 00:03:22,960
Speaker 1: this could be registered regulated US funds are not able

68
00:03:23,000 --> 00:03:25,520
Speaker 1: to participate in new Russian sovereign auctions that could be

69
00:03:25,560 --> 00:03:27,639
Speaker 1: a major hit to them. And then the other big

70
00:03:27,680 --> 00:03:29,520
Speaker 1: theme I think that we're looking at is Brazil, right,

71
00:03:29,560 --> 00:03:32,440
Speaker 1: I mean Brazil. You know, everything is all rosy in Brazil,

72
00:03:32,480 --> 00:03:35,160
Speaker 1: but now the country needs to deliver and both in

73
00:03:35,160 --> 00:03:37,320
Speaker 1: our as an uphill battle if they if they plan

74
00:03:37,400 --> 00:03:43,080
Speaker 1: on passing hugely unpopular pensruon reform and other structural agenda. Well, Damien,

75
00:03:43,120 --> 00:03:44,360
Speaker 1: I want to go back to something that you were

76
00:03:44,360 --> 00:03:47,240
Speaker 1: talking about with respect to the stress that seems to

77
00:03:47,280 --> 00:03:50,200
Speaker 1: be emerging in credit markets that basically the FED is

78
00:03:50,240 --> 00:03:53,640
Speaker 1: withdrawing liquidity from markets and you're starting to see investors

79
00:03:53,840 --> 00:03:57,800
Speaker 1: go back to treasuries and withdraw money from emerging markets.

80
00:03:58,200 --> 00:04:00,640
Speaker 1: I'm just wondering how much further you think this could go,

81
00:04:00,680 --> 00:04:03,600
Speaker 1: because I'm looking right now at the biggest dollar denominated

82
00:04:03,600 --> 00:04:06,640
Speaker 1: emerging markets debt et F and it's down six and

83
00:04:06,640 --> 00:04:08,480
Speaker 1: a half percent year to date. I mean, this hasn't

84
00:04:08,480 --> 00:04:10,400
Speaker 1: been a good year for it at all. Are we

85
00:04:10,480 --> 00:04:13,720
Speaker 1: looking at much deeper losses than that even potentially next well,

86
00:04:13,760 --> 00:04:15,280
Speaker 1: I mean if you just look back at the modern

87
00:04:15,280 --> 00:04:18,040
Speaker 1: era of emerging market debt and I'm talking post global

88
00:04:18,040 --> 00:04:21,000
Speaker 1: financial crisis, you know, this is the first environment we've

89
00:04:21,040 --> 00:04:24,120
Speaker 1: ever seen where you know, we're duration and I'm talking

90
00:04:24,279 --> 00:04:28,080
Speaker 1: losses that are due to rising US yields are really dominating.

91
00:04:28,279 --> 00:04:30,719
Speaker 1: You know, uh, you know, any other factor that might

92
00:04:30,920 --> 00:04:33,400
Speaker 1: generate you know, that might that might impact the end returns.

93
00:04:33,400 --> 00:04:35,760
Speaker 1: And the other big factor, as we know, is spread.

94
00:04:36,360 --> 00:04:39,160
Speaker 1: We'd have we've come come to some the taper tangum

95
00:04:39,160 --> 00:04:41,599
Speaker 1: a number of episodes, November elections, you name it, where

96
00:04:41,880 --> 00:04:44,200
Speaker 1: spreads have blown out quite considerably in the e M

97
00:04:44,240 --> 00:04:46,400
Speaker 1: debt and we've not seen that this time around, and

98
00:04:46,440 --> 00:04:48,360
Speaker 1: that is a real risk. And I think the reason

99
00:04:48,400 --> 00:04:50,520
Speaker 1: that spreads has kind of held their own here has

100
00:04:50,560 --> 00:04:52,360
Speaker 1: a lot to do with the fact that other spread

101
00:04:52,360 --> 00:04:55,480
Speaker 1: asset classes here in the U S, specifically high yield,

102
00:04:56,000 --> 00:04:58,520
Speaker 1: have not really witnessed the same sort of you know,

103
00:04:58,800 --> 00:05:01,760
Speaker 1: um hit that emerging market, you know, so, so I

104
00:05:01,800 --> 00:05:03,560
Speaker 1: think I think you make a very good point. I

105
00:05:03,560 --> 00:05:06,040
Speaker 1: think there's a real risk here that not so much

106
00:05:06,120 --> 00:05:07,800
Speaker 1: that the set isn't doing its job, but it's going

107
00:05:07,839 --> 00:05:10,960
Speaker 1: to be very very difficult for it to navigate an

108
00:05:11,080 --> 00:05:13,840
Speaker 1: environment where you know, dollars are being squeezed out of

109
00:05:13,880 --> 00:05:18,760
Speaker 1: the system. Damien. Are there many professionals who are betting

110
00:05:18,760 --> 00:05:22,200
Speaker 1: on a recovery in e M debt and equity and

111
00:05:22,279 --> 00:05:25,480
Speaker 1: have not seen that recovery and now are faced with

112
00:05:25,800 --> 00:05:32,400
Speaker 1: issues about redemptions or just past performances not prologue. Well,

113
00:05:32,440 --> 00:05:34,800
Speaker 1: I mean yes, and and there's there's certainly gonna be

114
00:05:34,839 --> 00:05:36,880
Speaker 1: pockets of that. But you make a really you're hitting

115
00:05:36,920 --> 00:05:39,960
Speaker 1: on a very very important nerve here, Pim. As we

116
00:05:40,000 --> 00:05:42,560
Speaker 1: get into the new year, you know, everything resets, right,

117
00:05:43,200 --> 00:05:46,120
Speaker 1: And I mean I've been crunching the numbers here and

118
00:05:46,600 --> 00:05:49,159
Speaker 1: I don't see how you can have exposure to some

119
00:05:49,240 --> 00:05:52,760
Speaker 1: of these very high BIDA, high risk UM you know

120
00:05:52,920 --> 00:05:55,880
Speaker 1: e M themes like Turkey and Argentina. You know, because

121
00:05:55,920 --> 00:05:57,719
Speaker 1: if we go into a risk on environment, you know,

122
00:05:57,760 --> 00:06:00,599
Speaker 1: at some point next year, those credits are going you know,

123
00:06:00,600 --> 00:06:03,480
Speaker 1: they're going to outperform significantly, just given the embedded data

124
00:06:03,520 --> 00:06:05,600
Speaker 1: that are in them, so you know, you just can't

125
00:06:05,600 --> 00:06:09,359
Speaker 1: afford not to own them, you know. And I despite

126
00:06:09,360 --> 00:06:12,520
Speaker 1: the weaker fundamentals, the higher idiosyncratic risk, I really can

127
00:06:12,520 --> 00:06:15,040
Speaker 1: see buyers emerging over the next few weeks into year end,

128
00:06:15,600 --> 00:06:17,840
Speaker 1: you know, before conditions turn a liquid into the holidays.

129
00:06:18,400 --> 00:06:20,880
Speaker 1: So just to follow on that theme right now, at

130
00:06:20,920 --> 00:06:23,640
Speaker 1: least looking at retail funds, we really haven't seen outflows.

131
00:06:23,920 --> 00:06:26,560
Speaker 1: Are we seeing outflows from other areas or not yet?

132
00:06:26,800 --> 00:06:29,360
Speaker 1: We have We've definitely seen active funds take their share

133
00:06:29,360 --> 00:06:31,880
Speaker 1: of out flows. A lot of that's already kind of transpired.

134
00:06:32,279 --> 00:06:33,960
Speaker 1: I think it's safe to say that you're going to

135
00:06:34,040 --> 00:06:36,599
Speaker 1: see some rebalancing, as you do most years, you know,

136
00:06:36,800 --> 00:06:39,359
Speaker 1: as you kind of you get through the thirty feet

137
00:06:39,440 --> 00:06:41,840
Speaker 1: into the into January. I mean what happens is is

138
00:06:41,920 --> 00:06:44,080
Speaker 1: usually a bit of a lag because the redemptions start

139
00:06:44,120 --> 00:06:45,880
Speaker 1: to come through, at least the redemption orders come through.

140
00:06:45,880 --> 00:06:47,640
Speaker 1: Now you know, they usually have a month or two

141
00:06:47,680 --> 00:06:49,440
Speaker 1: before they have to meet those redemptions and then we're

142
00:06:49,440 --> 00:06:52,360
Speaker 1: talking feb one. So really what you're looking at and

143
00:06:52,360 --> 00:06:54,520
Speaker 1: this is you know, just talking about credit conditions, Lisa,

144
00:06:54,520 --> 00:06:55,880
Speaker 1: which you and I are just kind of, you know,

145
00:06:55,960 --> 00:06:59,400
Speaker 1: harping on here as we emerge from the holiday, you know,

146
00:06:59,440 --> 00:07:03,520
Speaker 1: sort of Christmas holiday. How US credit markets react to

147
00:07:03,560 --> 00:07:06,080
Speaker 1: that and whether they normalize where they remain type is

148
00:07:06,120 --> 00:07:09,600
Speaker 1: going to be absolutely critical to performance in Thanks very

149
00:07:09,680 --> 00:07:12,040
Speaker 1: much for sharing your time with us and your expertise.

150
00:07:12,160 --> 00:07:17,080
Speaker 1: Damian sassau Are Bloomberg Intelligence knows everything about emerging markets

151
00:07:17,120 --> 00:07:19,720
Speaker 1: and emerging market credit and indeed, just taking a look

152
00:07:19,720 --> 00:07:23,160
Speaker 1: at the Eye Shares m s c I Emerging market

153
00:07:23,200 --> 00:07:27,200
Speaker 1: et F, it is down more than twenty percent since

154
00:07:27,240 --> 00:07:33,040
Speaker 1: the beginning of the year. And it's time to talk

155
00:07:33,200 --> 00:07:36,280
Speaker 1: about fees. You know, Lisa, whenever we talk about exchange

156
00:07:36,320 --> 00:07:39,360
Speaker 1: traded funds, we speak about why they are popular, and

157
00:07:39,400 --> 00:07:41,960
Speaker 1: of course one of the big reasons has to do

158
00:07:42,040 --> 00:07:45,760
Speaker 1: with their low cost fee structure. Specifically when it comes

159
00:07:45,800 --> 00:07:48,480
Speaker 1: to big index funds, let's say those that are offered

160
00:07:48,520 --> 00:07:50,480
Speaker 1: by Van Guard. So I want to know about in

161
00:07:50,520 --> 00:07:54,560
Speaker 1: the advisor space, what is happening to fees. Greg Gore

162
00:07:54,600 --> 00:07:58,120
Speaker 1: is the senior vice president of wealth Management for Commonwealth

163
00:07:58,160 --> 00:08:02,080
Speaker 1: Financial Network. He is east in Boston, as many of

164
00:08:02,120 --> 00:08:04,840
Speaker 1: those people at Commonwealth are, and he joins us here

165
00:08:04,920 --> 00:08:07,920
Speaker 1: in Austin, Texas. Greg, it's a pleasure to have you

166
00:08:07,960 --> 00:08:10,640
Speaker 1: here with us. Tell us the latest when it comes

167
00:08:10,680 --> 00:08:14,720
Speaker 1: to the trend in fee structure and how it's working

168
00:08:15,040 --> 00:08:19,680
Speaker 1: for the advisor community. Yeah, thanks for having us him. UM.

169
00:08:19,760 --> 00:08:22,040
Speaker 1: So there, you know, we're in the midst of probably

170
00:08:22,040 --> 00:08:26,200
Speaker 1: a ten or fifteen year secular trend away from commission business.

171
00:08:26,840 --> 00:08:31,160
Speaker 1: UM and his advisors have you know, migrated UM away

172
00:08:31,160 --> 00:08:34,880
Speaker 1: from commissions and into fees. Uh. The entire industry, UH

173
00:08:35,000 --> 00:08:38,960
Speaker 1: is moving toward lower cost, greater transparency. UH. It's great

174
00:08:38,960 --> 00:08:41,840
Speaker 1: stuff for clients. You know, they're seeing expense ratios go down.

175
00:08:41,880 --> 00:08:44,960
Speaker 1: In many cases, they're seeing the total overall fees they're

176
00:08:45,000 --> 00:08:47,800
Speaker 1: paying their advisors go down. UM. So clients are big

177
00:08:47,840 --> 00:08:52,560
Speaker 1: winners here. And you know, it seems like as this

178
00:08:52,640 --> 00:08:56,760
Speaker 1: trend progresses, UM, you know, commission business will continue to

179
00:08:56,840 --> 00:08:59,440
Speaker 1: erode and we may eventually get to a point where

180
00:08:59,440 --> 00:09:02,680
Speaker 1: the vast jority of advisors are fee based. So you

181
00:09:02,720 --> 00:09:06,439
Speaker 1: said that most advisors are most clients anyway are going

182
00:09:06,480 --> 00:09:09,000
Speaker 1: to be lower paying lower fees. That means that the

183
00:09:09,040 --> 00:09:11,320
Speaker 1: advisors are earning less. Do you expect some to go

184
00:09:11,320 --> 00:09:14,160
Speaker 1: out of business as a result. It's interesting and that

185
00:09:14,400 --> 00:09:17,600
Speaker 1: you know, client fees there, there's different components to it, right,

186
00:09:17,800 --> 00:09:20,600
Speaker 1: So we started this with the exchange traded funds, which

187
00:09:21,120 --> 00:09:25,199
Speaker 1: certainly you know carry you no far lower expense ratios

188
00:09:25,200 --> 00:09:27,960
Speaker 1: than your typical actively managed mutual funds. So a lot

189
00:09:28,000 --> 00:09:32,480
Speaker 1: of advisors UM have migrated clients from higher cost expense

190
00:09:32,559 --> 00:09:37,000
Speaker 1: ratio products to exchange traded funds UM, you know, maintain

191
00:09:37,120 --> 00:09:41,240
Speaker 1: their fee structure or only modestly adjusted it down UM,

192
00:09:41,320 --> 00:09:43,920
Speaker 1: and clients ultimately may still benefit there. And then you've

193
00:09:43,960 --> 00:09:49,360
Speaker 1: also seen some advisors reduce their asset management fee UM,

194
00:09:49,400 --> 00:09:52,680
Speaker 1: but charge a separate financial planning fee, so sort of

195
00:09:52,679 --> 00:09:56,000
Speaker 1: an unbundling of the advisory fee if you will. UM.

196
00:09:56,080 --> 00:09:58,280
Speaker 1: We we definitely see a trend towards that as well.

197
00:09:58,640 --> 00:10:03,199
Speaker 1: What is the breakdown if there is one based on demographics?

198
00:10:03,200 --> 00:10:08,600
Speaker 1: In other words, older customers, younger customers, because many younger

199
00:10:08,640 --> 00:10:13,000
Speaker 1: customers they've never lived in a world where commissions were

200
00:10:13,320 --> 00:10:16,480
Speaker 1: the basic way in which he got paid. Yeah, that's

201
00:10:16,520 --> 00:10:19,560
Speaker 1: a that's a great one, PIM. I think what we're

202
00:10:19,600 --> 00:10:23,760
Speaker 1: seeing among our advisor group is, you know, the older

203
00:10:23,800 --> 00:10:27,080
Speaker 1: clients I think are very comfortable UM. You know in

204
00:10:27,160 --> 00:10:29,439
Speaker 1: both the commission and a few world A lot of

205
00:10:29,520 --> 00:10:31,679
Speaker 1: them grew up with commissions, you know, sort of came

206
00:10:31,720 --> 00:10:34,800
Speaker 1: out of that era where there was still stockbrokers, you know,

207
00:10:34,840 --> 00:10:37,679
Speaker 1: where there was right Jacole Jamada trade and then you've

208
00:10:37,679 --> 00:10:40,040
Speaker 1: got your slip and you realize that you paid, you know,

209
00:10:40,120 --> 00:10:42,040
Speaker 1: you paid the demission. You know you paid, you paid

210
00:10:42,040 --> 00:10:44,440
Speaker 1: for the transaction. So so they're very comfortable with that.

211
00:10:44,559 --> 00:10:49,359
Speaker 1: I think, um as you move into the younger generation

212
00:10:49,440 --> 00:10:52,280
Speaker 1: that you know, they just consumed services differently, right, So

213
00:10:52,360 --> 00:10:54,840
Speaker 1: to them, they've grown up in the world where you know,

214
00:10:54,920 --> 00:10:57,960
Speaker 1: to them, commission is just they have no reference point

215
00:10:58,000 --> 00:11:01,280
Speaker 1: for that. They don't pay commissions. Um. So, so that's where,

216
00:11:01,280 --> 00:11:04,040
Speaker 1: particularly as we think about next gend clients, a lot

217
00:11:04,080 --> 00:11:07,079
Speaker 1: of our advisors are adjusting their fee schedule for those folks,

218
00:11:07,640 --> 00:11:11,240
Speaker 1: charging things like you know, recurring financial planning fees that

219
00:11:11,240 --> 00:11:12,839
Speaker 1: could be on a monthly basis, that could be on

220
00:11:12,920 --> 00:11:15,880
Speaker 1: a quarterly basis, like a subscription, like a subscription fee.

221
00:11:15,920 --> 00:11:17,800
Speaker 1: That that's how they you know, these folks like to

222
00:11:17,840 --> 00:11:21,839
Speaker 1: consume services exactly. I have to wonder if there is

223
00:11:21,920 --> 00:11:24,800
Speaker 1: more transparency and given the fact that fees have been

224
00:11:24,840 --> 00:11:27,480
Speaker 1: compressed across the board at what point will clients just

225
00:11:27,520 --> 00:11:29,320
Speaker 1: say I wanted to be lower and if you don't

226
00:11:29,360 --> 00:11:30,880
Speaker 1: lower it, I'm gonna go elsewhere we I'm gonna go

227
00:11:30,880 --> 00:11:33,440
Speaker 1: to a rob robo advisory and I'll make it work myself.

228
00:11:34,320 --> 00:11:37,560
Speaker 1: I think you're seeing that now. I think, um, you know,

229
00:11:37,760 --> 00:11:40,719
Speaker 1: clients are asking, they're better educated, and they're asking hard

230
00:11:40,800 --> 00:11:43,920
Speaker 1: questions around fees that probably ten years ago they weren't.

231
00:11:44,440 --> 00:11:47,000
Speaker 1: Now for us, as we think about you know, our

232
00:11:47,040 --> 00:11:51,880
Speaker 1: advisors sustainability, UM, I think as long as you're providing

233
00:11:51,960 --> 00:11:54,520
Speaker 1: far more than just investment management, it gives you a

234
00:11:54,640 --> 00:11:58,080
Speaker 1: nice mode, if you will, protection from like a robo advisor,

235
00:11:58,480 --> 00:12:02,840
Speaker 1: it's primarily focused on investment management. So most of our

236
00:12:02,880 --> 00:12:06,679
Speaker 1: advisors do play in the comprehensive financial planning space. So

237
00:12:06,840 --> 00:12:09,120
Speaker 1: investment management is just a small part of what they

238
00:12:09,120 --> 00:12:14,440
Speaker 1: get paid for. Insurance products, annuity products. They all come

239
00:12:14,480 --> 00:12:17,839
Speaker 1: with their own fee schedules based on the products that

240
00:12:17,880 --> 00:12:20,120
Speaker 1: may be sold. Do you see that that is going

241
00:12:20,160 --> 00:12:22,439
Speaker 1: to be an area that is going to change over

242
00:12:22,480 --> 00:12:26,600
Speaker 1: the next couple of years. I do, UM. I think

243
00:12:27,840 --> 00:12:30,040
Speaker 1: you know, the insurance industry maybe hasn't been on the

244
00:12:30,160 --> 00:12:34,160
Speaker 1: leading edge of this movement from commissions to advisory fees.

245
00:12:34,440 --> 00:12:37,120
Speaker 1: But I think we're starting to see signs that they're

246
00:12:37,120 --> 00:12:40,199
Speaker 1: going to move that direction. UH. Some of the major

247
00:12:40,880 --> 00:12:45,959
Speaker 1: v A carriers now have moved aggressively variable annuities have

248
00:12:46,080 --> 00:12:51,360
Speaker 1: moved aggressively into advisory based contracts UM. I was just

249
00:12:51,400 --> 00:12:54,000
Speaker 1: talking today with one of our insurance partners, asked ash

250
00:12:54,040 --> 00:12:57,280
Speaker 1: Brokerage UM, and they were talking about the evolution among

251
00:12:57,400 --> 00:12:59,880
Speaker 1: some of their insurance partners that are getting more into

252
00:12:59,880 --> 00:13:04,840
Speaker 1: the fee UM advisory based insurance products UH to support

253
00:13:05,160 --> 00:13:08,360
Speaker 1: you know, advisors who can't receive commissions who have made

254
00:13:08,360 --> 00:13:11,559
Speaker 1: that move in their affiliation model that their ent fee.

255
00:13:11,720 --> 00:13:13,360
Speaker 1: So I think the evolution is going to continue and

256
00:13:13,360 --> 00:13:15,360
Speaker 1: we're going to get a lot better products from it.

257
00:13:15,360 --> 00:13:17,240
Speaker 1: It's funny as you were talking and you were saying

258
00:13:17,280 --> 00:13:20,120
Speaker 1: they need to provide something more than just investment advice PAM.

259
00:13:20,200 --> 00:13:22,920
Speaker 1: Based on some of the conversations we've had here over

260
00:13:22,960 --> 00:13:25,880
Speaker 1: the past two days, it seems like being someone's family

261
00:13:25,920 --> 00:13:27,760
Speaker 1: therapist is part of it because you have to talk

262
00:13:27,800 --> 00:13:31,120
Speaker 1: about what their life goals are, what they envisioned for

263
00:13:31,160 --> 00:13:34,600
Speaker 1: themselves when they're olders, how their relationship is, how they

264
00:13:34,600 --> 00:13:37,400
Speaker 1: would like the world to be. Is that accurate, and

265
00:13:37,559 --> 00:13:42,520
Speaker 1: that is accurate. And uh, you know, we think about

266
00:13:42,559 --> 00:13:46,200
Speaker 1: what our advisors do and and all the services they deliver,

267
00:13:46,280 --> 00:13:49,280
Speaker 1: and all the conversations they have, and if you brought

268
00:13:49,480 --> 00:13:51,160
Speaker 1: ten of them over here, I bet you they'd tell

269
00:13:51,200 --> 00:13:53,000
Speaker 1: you they spend less than ten percent of their time

270
00:13:53,160 --> 00:13:58,160
Speaker 1: talking about investments with their clients. UM. It's really, you know,

271
00:13:58,240 --> 00:14:01,920
Speaker 1: it's not what most clients want to focus on. Um

272
00:14:02,000 --> 00:14:04,120
Speaker 1: that you know that they want to know, do I

273
00:14:04,160 --> 00:14:06,480
Speaker 1: have enough money to retire? You know? And am I

274
00:14:06,480 --> 00:14:07,800
Speaker 1: going to be able to take the trip? And I

275
00:14:07,920 --> 00:14:11,800
Speaker 1: am I gonna be able to fund my grandchildren's education? Um?

276
00:14:11,880 --> 00:14:15,320
Speaker 1: So it it the the investments, you know are important,

277
00:14:15,720 --> 00:14:18,160
Speaker 1: and certainly from the advisor's perspective, they do pay the

278
00:14:18,200 --> 00:14:21,280
Speaker 1: bills to some extent. UM. But but I don't think

279
00:14:21,280 --> 00:14:26,400
Speaker 1: it's you know, always the top priority for clients. Fiduciary rules,

280
00:14:27,120 --> 00:14:30,200
Speaker 1: that was a big topic last year. It's less so

281
00:14:30,480 --> 00:14:33,000
Speaker 1: this year. Do you believe that many firms are going

282
00:14:33,040 --> 00:14:37,880
Speaker 1: to just adopt fiduciary rules standards because it's good business.

283
00:14:40,240 --> 00:14:42,480
Speaker 1: I think we're in a wait and see right now,

284
00:14:42,520 --> 00:14:46,880
Speaker 1: you know. Um, certainly the d L fiduciary rule UM

285
00:14:47,040 --> 00:14:48,680
Speaker 1: was a wake up call. I think for a lot

286
00:14:48,680 --> 00:14:50,680
Speaker 1: of firms to sort of look at their business and say,

287
00:14:50,680 --> 00:14:54,080
Speaker 1: are we future proofed? Are we in a position that

288
00:14:54,240 --> 00:14:57,280
Speaker 1: you know, we can comply with this UM Now everybody

289
00:14:57,280 --> 00:15:00,320
Speaker 1: got a reprieve from that. UH, that may route to

290
00:15:00,320 --> 00:15:03,400
Speaker 1: be temporary. Right. The SEC is out now with the

291
00:15:03,400 --> 00:15:07,840
Speaker 1: best interest proposal. We've heard from UM the d O

292
00:15:08,000 --> 00:15:10,440
Speaker 1: L that they may take take another run at some

293
00:15:10,480 --> 00:15:15,040
Speaker 1: regulation here. UM. So our advisors, I mean of our

294
00:15:15,080 --> 00:15:18,240
Speaker 1: business is already fiduciary. So so our advisors are very

295
00:15:18,240 --> 00:15:20,840
Speaker 1: comfortable with that. Ultimately I think goes that direction, we'll

296
00:15:20,880 --> 00:15:23,040
Speaker 1: be just fine. Greg Gore, thank you so much for

297
00:15:23,040 --> 00:15:25,000
Speaker 1: being with us. Greg Gore as senior vice president of

298
00:15:25,000 --> 00:15:28,960
Speaker 1: Wealth Management at Commonwealth Financial Network normally in Boston right

299
00:15:28,960 --> 00:15:36,880
Speaker 1: now in Austin, Texas. Definitely, one thing that is shaking

300
00:15:37,080 --> 00:15:40,160
Speaker 1: at least the energy stocks in the SP five hundred

301
00:15:40,200 --> 00:15:44,640
Speaker 1: and beyond is the ongoing decline in oil and the

302
00:15:44,920 --> 00:15:49,600
Speaker 1: ten day losing streak is setting it up for possibly

303
00:15:49,680 --> 00:15:53,040
Speaker 1: the worst route on record. The ten day loss has

304
00:15:53,080 --> 00:15:56,040
Speaker 1: been the biggest since November two, sixteen, and that was

305
00:15:56,120 --> 00:15:58,760
Speaker 1: one there was basically a free fall going on in

306
00:15:58,800 --> 00:16:00,520
Speaker 1: the price of oil. So it's using a lot of

307
00:16:00,600 --> 00:16:04,440
Speaker 1: questions here, given the fact that we have entered a

308
00:16:04,480 --> 00:16:06,520
Speaker 1: bear market. Now to talk a little bit more about this,

309
00:16:06,800 --> 00:16:10,640
Speaker 1: Julian Lee Bloomberg oil strategist joining us Julian can give

310
00:16:10,720 --> 00:16:13,520
Speaker 1: us a sense of why what is the mean driver

311
00:16:13,720 --> 00:16:16,840
Speaker 1: behind the oil price declines recently. I think there's a

312
00:16:16,920 --> 00:16:21,400
Speaker 1: number of things going on. We are seeing that forecasts

313
00:16:21,400 --> 00:16:24,920
Speaker 1: of demand growth of being revised downwards by all of

314
00:16:24,920 --> 00:16:28,280
Speaker 1: the major agencies. But I think that the bigger thing

315
00:16:28,440 --> 00:16:32,960
Speaker 1: is is really a supply issue. UH. The US government

316
00:16:33,000 --> 00:16:37,880
Speaker 1: has raised its assessment of how much oil the United

317
00:16:37,920 --> 00:16:41,640
Speaker 1: States is producing. Both the most recent weekly and the

318
00:16:41,680 --> 00:16:45,120
Speaker 1: most recent monthly data show that production is growing at

319
00:16:45,120 --> 00:16:48,480
Speaker 1: a rate of two million barrels a day year on year.

320
00:16:48,880 --> 00:16:51,000
Speaker 1: That is a staggering amount of oil. I mean that

321
00:16:51,160 --> 00:16:55,560
Speaker 1: is adding as much oil as is produced by Nigeria

322
00:16:55,640 --> 00:16:58,520
Speaker 1: and Gabon to OPEC members in the space of a

323
00:16:58,560 --> 00:17:02,720
Speaker 1: single year. UH. That I think has really spooked markets

324
00:17:02,760 --> 00:17:06,240
Speaker 1: and there's more shale to come. Julian. If you take

325
00:17:06,240 --> 00:17:08,480
Speaker 1: a look at the price of crude on the NIMAX,

326
00:17:08,840 --> 00:17:14,240
Speaker 1: since the beginning of October, the price has fallen more

327
00:17:14,280 --> 00:17:20,600
Speaker 1: than twenty per cent. If this was a stock market indicator,

328
00:17:21,040 --> 00:17:24,080
Speaker 1: people would be jumping out of windows. They would be

329
00:17:24,160 --> 00:17:29,400
Speaker 1: seeing their stock portfolios lower by a five. Is there

330
00:17:29,440 --> 00:17:33,800
Speaker 1: a rebound that will happen. There may be a temporary rebound.

331
00:17:33,800 --> 00:17:38,719
Speaker 1: I mean we are moving towards a period of of

332
00:17:39,200 --> 00:17:42,480
Speaker 1: much stronger seasonal demand. I mean, if you look at

333
00:17:42,520 --> 00:17:47,040
Speaker 1: one indicator, if you look at US refinery runs, the

334
00:17:47,080 --> 00:17:50,840
Speaker 1: amount of crude oil processed in US refineries, it's just

335
00:17:51,040 --> 00:17:53,680
Speaker 1: coming to the end of what is typically a seasonal

336
00:17:53,760 --> 00:17:57,200
Speaker 1: low point, and the amount of oil being processed will

337
00:17:57,320 --> 00:18:00,240
Speaker 1: pick up over the period to the end of the

338
00:18:00,320 --> 00:18:02,280
Speaker 1: year by as much as one and a half million

339
00:18:02,280 --> 00:18:05,320
Speaker 1: barrels a day. That's going to give a a short

340
00:18:05,440 --> 00:18:10,520
Speaker 1: term boost to the demand for crude oil UM, and

341
00:18:10,600 --> 00:18:14,280
Speaker 1: that might provide a bit of relief for a while. UM.

342
00:18:14,320 --> 00:18:16,199
Speaker 1: But I think eyes are going to be on on

343
00:18:16,440 --> 00:18:20,119
Speaker 1: Opaque and Russia, the group of countries that said they

344
00:18:20,160 --> 00:18:24,919
Speaker 1: would cut output. They are meeting on Sunday. This is

345
00:18:24,960 --> 00:18:29,040
Speaker 1: not a policy making meeting. It's a meeting to sort

346
00:18:29,080 --> 00:18:31,720
Speaker 1: of assess how their current agreement is going. But it

347
00:18:31,760 --> 00:18:34,520
Speaker 1: will set the tone I think for their discussions over

348
00:18:34,560 --> 00:18:38,840
Speaker 1: thecoming coming weeks. Is there a price point Julian at

349
00:18:38,880 --> 00:18:43,280
Speaker 1: which basically people start to go back to fossil fuels,

350
00:18:43,280 --> 00:18:46,960
Speaker 1: go back to using oil. That stymy is the development

351
00:18:47,080 --> 00:18:49,520
Speaker 1: of alternative energy sources. In other words, that's good for

352
00:18:49,560 --> 00:18:52,200
Speaker 1: the oil industry long term. In other words, three dollars

353
00:18:52,200 --> 00:18:54,680
Speaker 1: a barrel, it would be actually for the long term,

354
00:18:54,680 --> 00:18:56,880
Speaker 1: probably pretty good for them. For the oil industry now,

355
00:18:57,720 --> 00:19:00,080
Speaker 1: it would certainly be good from a demand point of you.

356
00:19:00,200 --> 00:19:02,440
Speaker 1: I think the problem with thirty dollar a barrel oil

357
00:19:02,600 --> 00:19:08,480
Speaker 1: is that that really starts biting into investment in future production.

358
00:19:08,600 --> 00:19:12,679
Speaker 1: And we saw that when oil prices fell, when they

359
00:19:12,680 --> 00:19:18,520
Speaker 1: were getting down to those sort of levels, in investment

360
00:19:18,600 --> 00:19:21,960
Speaker 1: in new projects just dried up um. And we're still

361
00:19:22,000 --> 00:19:24,560
Speaker 1: I think seeing the tail end of that. Now. What

362
00:19:24,840 --> 00:19:28,960
Speaker 1: is you know, what everybody I think agrees is that

363
00:19:29,320 --> 00:19:33,200
Speaker 1: we need some sort of stability around a price that

364
00:19:34,000 --> 00:19:37,120
Speaker 1: doesn't choke off demand too quickly, but also is high

365
00:19:37,240 --> 00:19:41,800
Speaker 1: enough to allow the industry to continue to invest. What

366
00:19:41,840 --> 00:19:44,320
Speaker 1: that level is is is the thing that nobody can

367
00:19:44,359 --> 00:19:47,959
Speaker 1: agree on. When oil prices were thirty dollars a barrel,

368
00:19:47,960 --> 00:19:50,680
Speaker 1: OPEC said it was round about fifty. When it got

369
00:19:50,720 --> 00:19:53,480
Speaker 1: to fifty, they were talking well maybe it's round about seventy.

370
00:19:54,119 --> 00:19:56,679
Speaker 1: When it got to seventy, well maybe the target was eighty.

371
00:19:56,800 --> 00:19:59,600
Speaker 1: So you know, this is a very much a movable

372
00:19:59,680 --> 00:20:02,639
Speaker 1: feat all right, it's a movable feast, but the feast

373
00:20:02,720 --> 00:20:06,600
Speaker 1: is sometimes stuck in the ground. Reserve values they are

374
00:20:06,800 --> 00:20:11,119
Speaker 1: used for collateral purposes if you happen to be borrowing money,

375
00:20:11,160 --> 00:20:15,879
Speaker 1: which many exploration companies in the shale patch actually do.

376
00:20:16,000 --> 00:20:18,160
Speaker 1: They taken on a lot of debt. When do they

377
00:20:18,200 --> 00:20:21,600
Speaker 1: have to revise those assumptions for how much that oil

378
00:20:21,640 --> 00:20:24,080
Speaker 1: at fossil fuel is in the ground, how much it's

379
00:20:24,119 --> 00:20:27,160
Speaker 1: going to be worth well, I mean most of these

380
00:20:27,160 --> 00:20:33,160
Speaker 1: companies are looking at a sort of revising the estimates

381
00:20:33,200 --> 00:20:36,639
Speaker 1: of their break even prices and the value of oil

382
00:20:36,680 --> 00:20:40,120
Speaker 1: in the ground on a usually on a six monthly basis.

383
00:20:40,160 --> 00:20:42,879
Speaker 1: So the next one is is probably coming up towards

384
00:20:42,920 --> 00:20:46,520
Speaker 1: the end of this year. But at seventy dollars a barrel,

385
00:20:47,240 --> 00:20:49,800
Speaker 1: sixty dollars a barrel for w t I I sort

386
00:20:49,800 --> 00:20:51,800
Speaker 1: of work in a Brent world being in Europe, but

387
00:20:52,040 --> 00:20:54,720
Speaker 1: you know, sixty dollars w t I, most of these

388
00:20:54,720 --> 00:20:58,359
Speaker 1: companies producing in the shale patch have probably cut their

389
00:20:58,400 --> 00:21:02,760
Speaker 1: break evens two round about thirty thirty five dollars of arrel.

390
00:21:02,880 --> 00:21:05,399
Speaker 1: So from that point of view, I think they're still

391
00:21:05,440 --> 00:21:09,440
Speaker 1: fairly comfortable. The people who are going to be suffering

392
00:21:09,680 --> 00:21:13,000
Speaker 1: as prices fall if they continue to do so, are

393
00:21:13,040 --> 00:21:17,200
Speaker 1: the people who are looking at investing in very big, expensive,

394
00:21:17,320 --> 00:21:20,560
Speaker 1: long term projects, and that's where the investment has really

395
00:21:20,640 --> 00:21:23,280
Speaker 1: dried up. Julian Lee, thank you so much for being

396
00:21:23,280 --> 00:21:26,360
Speaker 1: with us. Definitely oil in the spotlight today and your

397
00:21:26,400 --> 00:21:30,920
Speaker 1: perspective is greatfully, really insightful. Jeffrey, Julian Lee is Bloomberg

398
00:21:30,960 --> 00:21:34,680
Speaker 1: Oil strategist. Uh coming to us. We are currently in Austin,

399
00:21:34,720 --> 00:21:37,200
Speaker 1: Texas at least RAMA. What's along with my co host

400
00:21:37,200 --> 00:21:42,960
Speaker 1: and colleague Pim Fox. This is Bloomberg. Then we're going

401
00:21:43,040 --> 00:21:47,280
Speaker 1: to talk a little bit about financial literacy financial education

402
00:21:47,600 --> 00:21:49,720
Speaker 1: and joining us now to help us do this is

403
00:21:49,920 --> 00:21:54,359
Speaker 1: Maggie John Drew. Maggie is the president and owner of

404
00:21:54,640 --> 00:21:58,600
Speaker 1: Gendre Wealth Management based in Farmington, Connecticut. Maggie, thank you

405
00:21:58,720 --> 00:22:00,639
Speaker 1: very much for joining us, ke you for having me.

406
00:22:00,800 --> 00:22:02,879
Speaker 1: Just by way of introduction, I just want to mention

407
00:22:02,960 --> 00:22:04,800
Speaker 1: that the not only do you have a b a.

408
00:22:04,920 --> 00:22:08,920
Speaker 1: In economics from Providence college but also an m a

409
00:22:08,960 --> 00:22:12,040
Speaker 1: Master of Science rather from the London School of Economics.

410
00:22:12,680 --> 00:22:17,960
Speaker 1: You've taken your educational perspective and you've decided to turn

411
00:22:17,960 --> 00:22:22,800
Speaker 1: it into a trivia game having to do with financial information.

412
00:22:22,920 --> 00:22:27,720
Speaker 1: Tell us about your your your trivia game. Sure absolutely

413
00:22:27,920 --> 00:22:31,919
Speaker 1: so UM. I actually joined my partner Laurie, who's been

414
00:22:31,920 --> 00:22:34,680
Speaker 1: in the business for over thirty years, and a goal

415
00:22:34,720 --> 00:22:36,840
Speaker 1: of mine was to reach out to the next generation

416
00:22:36,840 --> 00:22:40,960
Speaker 1: of investors. And everyone's done the sit down seminars where

417
00:22:41,359 --> 00:22:43,879
Speaker 1: you have the state dinner and you know, maybe you

418
00:22:43,960 --> 00:22:46,879
Speaker 1: leave with a prospect, maybe you don't, UM, and not

419
00:22:47,000 --> 00:22:49,040
Speaker 1: necessarily everyone gets a lot out of it. So I thought,

420
00:22:49,040 --> 00:22:52,440
Speaker 1: how can we make this for the next gen and

421
00:22:52,560 --> 00:22:54,919
Speaker 1: UM we started doing him at more interesting places like

422
00:22:54,960 --> 00:22:59,360
Speaker 1: breweries for instance, and we would have a trivia game

423
00:22:59,440 --> 00:23:03,840
Speaker 1: which include your typical trivial questions but then also financial ones,

424
00:23:04,320 --> 00:23:07,200
Speaker 1: and at the end of every round I would give

425
00:23:07,240 --> 00:23:11,720
Speaker 1: some financial advice, so anything from basic insurances to for

426
00:23:11,880 --> 00:23:14,919
Speaker 1: owen k plans in your match too of course student

427
00:23:15,000 --> 00:23:18,040
Speaker 1: loans UM. And they've been wildly successful, to the point

428
00:23:18,119 --> 00:23:20,600
Speaker 1: that some corporations have started asking me to bring them

429
00:23:20,600 --> 00:23:23,080
Speaker 1: in in house. So Maggie, You've worked at a lot

430
00:23:23,119 --> 00:23:27,400
Speaker 1: of Well Street banks, from Barclays and JP Morgan, uh

431
00:23:27,600 --> 00:23:30,600
Speaker 1: most prominently among them. I'm wondering, our millennials really different

432
00:23:30,640 --> 00:23:32,760
Speaker 1: from anybody else? And is it really a group that

433
00:23:32,840 --> 00:23:36,160
Speaker 1: can be isolated with a characterization and when it comes

434
00:23:36,160 --> 00:23:39,040
Speaker 1: to investing sure, UM, I think a little bit yes

435
00:23:39,080 --> 00:23:40,440
Speaker 1: and a little bit no. I mean, in the end,

436
00:23:40,840 --> 00:23:43,679
Speaker 1: everybody wants to have a good life, right and however

437
00:23:43,680 --> 00:23:46,919
Speaker 1: they define that. But I think one place specifically that

438
00:23:46,960 --> 00:23:50,359
Speaker 1: millennials are different than boomers is that they do believe

439
00:23:50,400 --> 00:23:55,439
Speaker 1: in social socially responsible investing. In fact, I believe sixty

440
00:23:55,560 --> 00:23:58,960
Speaker 1: six percent of millennials want that that social peace and

441
00:23:59,000 --> 00:24:02,840
Speaker 1: boomers about half. UM. So often when I am working

442
00:24:02,880 --> 00:24:06,479
Speaker 1: with millennials, I have clients asking me to invest in

443
00:24:06,920 --> 00:24:09,359
Speaker 1: of course clean energy, Um, they want to invest in

444
00:24:09,400 --> 00:24:11,680
Speaker 1: companies with a lot of women on the board. They

445
00:24:11,680 --> 00:24:14,600
Speaker 1: want to invest in bettering the water supply. So that's

446
00:24:14,680 --> 00:24:17,240
Speaker 1: a major difference, I would say. And then the second one,

447
00:24:17,320 --> 00:24:19,840
Speaker 1: of course, is the student loan debt. I think we

448
00:24:19,920 --> 00:24:22,280
Speaker 1: have to deal with that a lot more. The use

449
00:24:22,320 --> 00:24:25,840
Speaker 1: of technology in order to stay connected with your clients,

450
00:24:25,880 --> 00:24:29,320
Speaker 1: with your customers how has that changed your ability to

451
00:24:29,320 --> 00:24:32,600
Speaker 1: actually run the business but also to give that kind

452
00:24:32,640 --> 00:24:35,199
Speaker 1: of advice on a continuous basis because people are much

453
00:24:35,280 --> 00:24:39,359
Speaker 1: more mobile today. Absolutely. So, while headquartered in Connecticut, I

454
00:24:39,440 --> 00:24:42,000
Speaker 1: spent quite a bit of time in New York as well,

455
00:24:42,280 --> 00:24:44,879
Speaker 1: um and I have clients there. So when I'm in Connecticut,

456
00:24:45,600 --> 00:24:49,480
Speaker 1: we skype. We have used FaceTime before. In fact, I

457
00:24:49,520 --> 00:24:51,639
Speaker 1: had a client that was spending a whole year in

458
00:24:51,680 --> 00:24:54,800
Speaker 1: Italy and she inherited money from her father and wanted

459
00:24:54,840 --> 00:24:58,560
Speaker 1: it figured out before she came back years a long time,

460
00:24:58,880 --> 00:25:02,360
Speaker 1: and we did everything or skype. One other sort of

461
00:25:02,480 --> 00:25:05,280
Speaker 1: cliche about millennials is that they're scared of the stock

462
00:25:05,320 --> 00:25:08,399
Speaker 1: market because they grew up at a time during a

463
00:25:08,440 --> 00:25:11,879
Speaker 1: lot of turmoil in equity markets. Is that true? I

464
00:25:11,880 --> 00:25:15,040
Speaker 1: would say it is. Yeah. We we have seen of

465
00:25:15,080 --> 00:25:17,760
Speaker 1: course two eight most recently, and then some even saw

466
00:25:18,000 --> 00:25:20,679
Speaker 1: the dot com crash. Um. But the way I've been

467
00:25:20,720 --> 00:25:23,959
Speaker 1: commanding that is through education. Um. So again, the trivia

468
00:25:24,160 --> 00:25:26,840
Speaker 1: nights are a great example, or just having small group

469
00:25:27,200 --> 00:25:31,600
Speaker 1: group events in our office where we can explain the

470
00:25:31,680 --> 00:25:35,760
Speaker 1: impact of long term investing and how even after those

471
00:25:35,800 --> 00:25:39,560
Speaker 1: that stayed invested are relatively Okay, today, what is f

472
00:25:39,880 --> 00:25:43,000
Speaker 1: our next Gen. This is something that you put together.

473
00:25:43,040 --> 00:25:46,800
Speaker 1: It's a subscription service for financial planning. Tell us about

474
00:25:47,160 --> 00:25:52,200
Speaker 1: f R next Gen. Sure, So, a lot of professional

475
00:25:52,240 --> 00:25:56,359
Speaker 1: millennials who would be wonderful clients don't have necessarily the

476
00:25:56,359 --> 00:25:59,879
Speaker 1: a M that a traditional assets under management. That's right.

477
00:26:00,000 --> 00:26:02,400
Speaker 1: They don't have the money to have a financial advisor

478
00:26:02,680 --> 00:26:05,520
Speaker 1: manage it, but instead a lot of that money is

479
00:26:05,520 --> 00:26:08,400
Speaker 1: tied up in their four own K. And I've seen

480
00:26:08,400 --> 00:26:10,280
Speaker 1: people come to me and their default in their four

481
00:26:10,280 --> 00:26:13,840
Speaker 1: owne K is simply a money market. So they're really

482
00:26:13,840 --> 00:26:16,720
Speaker 1: not getting the benefit of that investing, but they're putting

483
00:26:16,720 --> 00:26:19,000
Speaker 1: away for a four owne K. And so for people

484
00:26:19,040 --> 00:26:21,560
Speaker 1: like that, they can come to an advisor, pay that

485
00:26:21,600 --> 00:26:24,440
Speaker 1: subscription service on a monthly basis, and we can give

486
00:26:24,440 --> 00:26:26,520
Speaker 1: them advice on their four owen K, how to better

487
00:26:26,920 --> 00:26:30,280
Speaker 1: allocate it, on student loans, on buying a home, really

488
00:26:30,320 --> 00:26:34,439
Speaker 1: providing that holistic financial planning without necessarily having the assets

489
00:26:34,600 --> 00:26:36,680
Speaker 1: er management. Maggie, I want to go back to something

490
00:26:36,680 --> 00:26:38,960
Speaker 1: that you said, which is the student loans. That's a

491
00:26:39,040 --> 00:26:42,600
Speaker 1: serious issue that we need to deal with. How has

492
00:26:42,840 --> 00:26:45,840
Speaker 1: the massive student owned a student loan debt, which is

493
00:26:45,960 --> 00:26:50,000
Speaker 1: has surpassed one trillion dollars in United States, affected family formation,

494
00:26:50,520 --> 00:26:55,400
Speaker 1: retirement savings, etcetera. For millennials. Yeah, I think everyone's putting

495
00:26:55,440 --> 00:26:58,639
Speaker 1: it off a little bit, meaning buying a home, starting

496
00:26:58,680 --> 00:27:01,439
Speaker 1: a family, not only because of student debt, but I

497
00:27:01,480 --> 00:27:05,560
Speaker 1: know from speaking with clients that is definitely a reason. Um,

498
00:27:05,600 --> 00:27:08,199
Speaker 1: I think another reason though his career. Right, So in

499
00:27:08,240 --> 00:27:10,040
Speaker 1: the past, if you had a child, maybe you had

500
00:27:10,040 --> 00:27:13,480
Speaker 1: to make some some decisions without about your career, whereas

501
00:27:13,520 --> 00:27:15,520
Speaker 1: now people really want to be set in their career,

502
00:27:15,560 --> 00:27:17,600
Speaker 1: paid on some of that student loan debt, and then

503
00:27:17,600 --> 00:27:19,200
Speaker 1: be able to start a family or buy a home.

504
00:27:19,520 --> 00:27:21,200
Speaker 1: And in fact, I am starting to see that I

505
00:27:21,240 --> 00:27:23,360
Speaker 1: get a lot more questions about home buying and five

506
00:27:23,840 --> 00:27:27,920
Speaker 1: plans than ever before. Unfortunately, sometimes it all doesn't work

507
00:27:27,920 --> 00:27:30,520
Speaker 1: out and there are divorces involved, and as someone that

508
00:27:30,600 --> 00:27:35,280
Speaker 1: helps family plans, those families can change in disposition over

509
00:27:35,280 --> 00:27:38,119
Speaker 1: the course of years. Tell us a little bit about

510
00:27:38,160 --> 00:27:41,439
Speaker 1: that part of your practice and how you specifically are

511
00:27:41,480 --> 00:27:44,000
Speaker 1: able to help women who are going through those issues.

512
00:27:44,720 --> 00:27:48,760
Speaker 1: Great questions. So we actually are women practice, uh, not

513
00:27:48,800 --> 00:27:53,560
Speaker 1: necessarily but by design, but definitely enjoy that peace and

514
00:27:53,680 --> 00:27:55,919
Speaker 1: because of that, we do have a lot of women

515
00:27:56,240 --> 00:27:59,760
Speaker 1: coming and seeking advice about financials. A lot of women

516
00:28:00,040 --> 00:28:04,480
Speaker 1: were home caretakers and hadn't worked in many years um

517
00:28:04,600 --> 00:28:07,520
Speaker 1: or they've never dealt with the finances before. Uh, and

518
00:28:07,600 --> 00:28:10,399
Speaker 1: so when they come to us, we definitely do holistic planning.

519
00:28:10,640 --> 00:28:13,159
Speaker 1: So we start with a financial plan, making sure that

520
00:28:13,200 --> 00:28:16,960
Speaker 1: the budget is sound. Then maybe they're they're likely inheriting

521
00:28:17,359 --> 00:28:20,160
Speaker 1: money that they haven't had before from their spouse, right, well,

522
00:28:20,200 --> 00:28:23,159
Speaker 1: inheriting is the wrong word, but but obtaining, right, And

523
00:28:23,240 --> 00:28:26,240
Speaker 1: so what does that mean? And now retirement is no

524
00:28:26,280 --> 00:28:29,360
Speaker 1: longer with somebody else, it's alone, and what does that mean?

525
00:28:29,400 --> 00:28:33,280
Speaker 1: Both emotionally and financially. So that's definitely a part of

526
00:28:33,320 --> 00:28:36,960
Speaker 1: our practice we've developed. And just real quick, I'm wondering,

527
00:28:36,960 --> 00:28:38,640
Speaker 1: how many people do you say that you work with?

528
00:28:38,760 --> 00:28:40,680
Speaker 1: How many different clients? Sure? We have a hundred and

529
00:28:40,720 --> 00:28:43,680
Speaker 1: fifty households. Yeah, all right. It's really interesting to hear

530
00:28:43,720 --> 00:28:46,240
Speaker 1: about how the different generations are different, to try to

531
00:28:46,240 --> 00:28:49,240
Speaker 1: extrapolate out into what we're seeing in markets and how

532
00:28:49,280 --> 00:28:51,200
Speaker 1: that's reflected. Thank you so much for being here, Thank

533
00:28:51,200 --> 00:28:53,960
Speaker 1: you for having me. Really interesting Maggie at Jendrew, President,

534
00:28:53,960 --> 00:28:57,920
Speaker 1: owner of Jendrew Wealth Management in Farmington, Connecticut, but obviously

535
00:28:58,120 --> 00:29:01,680
Speaker 1: not today. She is here in to in Texas at

536
00:29:01,720 --> 00:29:05,160
Speaker 1: this conference, at the Commonwealth conference that we have been at.

537
00:29:05,760 --> 00:29:08,080
Speaker 1: So we are looking right now at markets that are

538
00:29:08,200 --> 00:29:11,320
Speaker 1: in the red. Perhaps this is just another bout of

539
00:29:11,360 --> 00:29:14,200
Speaker 1: concerns about overvaluation, with the NASTAC leading the way down

540
00:29:14,320 --> 00:29:18,160
Speaker 1: one point four percent decline, uh SMP five hundred down

541
00:29:18,280 --> 00:29:20,040
Speaker 1: a little a little bit less than nine tenths of

542
00:29:20,120 --> 00:29:22,720
Speaker 1: one percent. In the bond market, you can see yields

543
00:29:22,720 --> 00:29:26,360
Speaker 1: actually coming down across the board, despite some speculation that

544
00:29:26,840 --> 00:29:29,360
Speaker 1: the deficit is only going to increase and the FED

545
00:29:29,560 --> 00:29:32,440
Speaker 1: is on pace to raise rates. Coming up, we're gonna

546
00:29:32,440 --> 00:29:35,360
Speaker 1: take a look at emerging markets. What does the FEDS

547
00:29:35,480 --> 00:29:38,320
Speaker 1: path of rate hikes mean for them. I'm Lisa Bromo

548
00:29:38,440 --> 00:29:42,200
Speaker 1: was pim Fox, and this is Bloomberg Markets. Thanks for

549
00:29:42,280 --> 00:29:44,920
Speaker 1: listening to the Bloomberg p m L podcast. You can

550
00:29:44,960 --> 00:29:48,800
Speaker 1: subscribe and listen to interviews at Apple Podcasts, SoundCloud, or

551
00:29:48,840 --> 00:29:52,320
Speaker 1: whatever podcast platform you prefer. I'm pim Fox. I'm on

552
00:29:52,360 --> 00:29:56,200
Speaker 1: Twitter at pim Fox. I'm on Twitter at Lisa Abramo.

553
00:29:56,320 --> 00:29:58,920
Speaker 1: It's one before the podcast. You can always catch us

554
00:29:58,960 --> 00:30:01,520
Speaker 1: worldwide on bloom or Radio m