Speaker 1: Bloomberg Audio Studios, podcasts, radio news, single.
Speaker 2: Best idea, and thank you so much for our Thanksgiving,
Speaker 2: which is an incredible year for what we're doing in
Speaker 2: the digital space, not only with this little thing yette,
Speaker 2: but all of Bloomberg podcasts, what Joe Wisenthal and Tracy
Speaker 2: Laway are doing. Go out to YouTube, subscribe to Bloomberg podcast.
Speaker 2: It's a compendium of what we're doing. In live. We
Speaker 2: try to do it every morning. Today Live, we did
Speaker 2: it with Andrew Slimon. He's wonderful out of Chicago with
Speaker 2: Morgan Stanley, writes a brilliant note. Get that note through
Speaker 2: Morgan Stanley, and here's my Thanksgiving gift to you. Bottle
Speaker 2: this answer. Andrew Slimmon on the markets.
Speaker 3: If I go with my Bloomberg terminal and I look
Speaker 3: at what has worked from a style standpoint the last
Speaker 3: ten years, value, you know, dividends, what's worked according to
Speaker 3: you're bloom work, it is momentum number one and revisions
Speaker 3: number two. Long down the list is things like dividends, quality, value, growth.
Speaker 3: It is momentum and revisions. And the reality of the
Speaker 3: market is that earnings i e. Revisions are very strong
Speaker 3: right now because the economy. For all the talk, earnings
Speaker 3: have come in better than what really Wall Street thought,
Speaker 3: certainly since April, but even since the beginning of the year.
Speaker 2: Slim In physics from the gentleman from Princeton. Let me
Speaker 2: walk through why what he said is so important in
Speaker 2: the Newtonian model of this, which is based around the calculus.
Speaker 2: And take physics where you're like on the road standing still,
Speaker 2: and then you have velocity. You put your foot in
Speaker 2: the pedal and then you press down or pit the brake.
Speaker 2: That's acceleration. The acceleration that's a second derivative. So you
Speaker 2: have an earnings belief out there, and then you have revisions,
Speaker 2: which is the change of the belief. And what he's
Speaker 2: saying is what's moving the market. And I think of
Speaker 2: Gena Martin Adams now on Margins on this as well.
Speaker 2: What's so so important here is this quarter after quarter
Speaker 2: after quarter of constructive revisions, the second derivative of the
Speaker 2: earnings belief, the profit belief in corporations doing better than
Speaker 2: good again Andrew Slimming here on the view forward.
Speaker 3: My argument, Tom is the stock market is following a
Speaker 3: classic behavioral path, which is unfortunately you know that The
Speaker 3: only consistency of this business, and you know this bomb
Speaker 3: as well as I do, is people SELLO and they
Speaker 3: buy high. It's the only all market I know were
Speaker 3: when prices go down, people want to sell wells.
Speaker 2: Just described by the investment strategy.
Speaker 3: Well, it's triple triple log cast whatever you're have. But
Speaker 3: look in twenty twenty three, we had just come off
Speaker 3: a twenty five percent declining. It was a wonderful opportunity
Speaker 3: buy stocks. But the reason why we had twenty five percent,
Speaker 3: the client was had was raising rates. So suddenly now
Speaker 3: short term rates look attractive.
Speaker 2: Andrew slam in there and just a little vignette what
Speaker 2: a privilege I had in my ute. A gentleman named
Speaker 2: John Galbray's up in Toronto with Templeton Global Investors. Said
Speaker 2: please come up and meet John Templeton and John Templeton.
Speaker 2: When I could shave maybe twice a week, I'm lying
Speaker 2: once a week. Said just what you heard there from
Speaker 2: the Great Andrew Slimmon of Morgan Stanley. What do we do?
Speaker 2: We sell at the bottom, then we buy at the top.
Speaker 2: We're in a podcasts Apple and Spotify or and YouTube podcasts.
Speaker 2: It's single best idea