WEBVTT - BlackRock Global Fixed Income CIO Rick Rieder Talks ETFs, Consumer Sentiment 0:00:02.520 --> 0:00:07.000 Bloomberg Audio studios, podcasts, radio news. 0:00:07.920 --> 0:00:10.119 So we have a lot of ETF related things to 0:00:10.119 --> 0:00:12.840 get into. Bank of course, just had a big birthday. 0:00:12.880 --> 0:00:15.440 But given the size of the moves that we're seeing 0:00:15.480 --> 0:00:17.520 in the market right now, let's start broad the s 0:00:17.560 --> 0:00:20.319 and P five hundred higher by nearly two percent, the 0:00:20.400 --> 0:00:23.160 NASZAQ one hundred higher by more than three percent on 0:00:23.200 --> 0:00:26.320 the heels of that peace agreement announcement. Then you take 0:00:26.320 --> 0:00:28.800 a look at the bond market, still a big move. 0:00:28.880 --> 0:00:32.360 You did see yields drop across the curve coming back 0:00:32.440 --> 0:00:34.640 a little bit. Though, when you put it all together, 0:00:34.680 --> 0:00:36.280 you take a look at the different ASSA classes and 0:00:36.320 --> 0:00:38.760 you add oil in there. I mean, what's your initial 0:00:39.240 --> 0:00:40.920 read on this knee jerk? 0:00:41.560 --> 0:00:45.360 So I'd say, obviously the peace agreement, and as you said, 0:00:45.400 --> 0:00:47.560 we'll say how durable it is. My senses are moving 0:00:47.600 --> 0:00:51.279 in a direction that ultimately will be quite positive. So 0:00:51.760 --> 0:00:54.400 the thing that's amazing to me, and by the way 0:00:54.600 --> 0:00:57.320 it played out around the SpaceX transaction, there is so 0:00:57.480 --> 0:01:00.639 much cash that's sitting on the sideline, So we get 0:01:00.640 --> 0:01:02.640 to be number depend on how you measure eight or 0:01:02.720 --> 0:01:06.560 nine trillion in money market funds nineteen trillion deposits and 0:01:06.600 --> 0:01:08.160 you know what happened. You know, you go back a 0:01:08.160 --> 0:01:10.520 week ago when you think about this big SpaceX deal. 0:01:10.920 --> 0:01:14.000 People have to find room though in terms of portfolios, 0:01:14.000 --> 0:01:15.960 et cetera. So you create a little bit of that 0:01:16.280 --> 0:01:20.080 and then once once that has happened, all of a sudden, 0:01:20.080 --> 0:01:22.320 it unlocks this cash, particularly when you get a good 0:01:22.360 --> 0:01:24.119 piece of news and people say, gosh, I can get 0:01:24.120 --> 0:01:27.520 into the pool, and it's pretty explosive when you see 0:01:27.560 --> 0:01:29.840 it happen. Obviously, the move you know, after we've had 0:01:29.880 --> 0:01:32.880 a good run the equity market has been pretty impressive today. 0:01:33.959 --> 0:01:36.760 Thank you for explaining that, because sometimes it's you know, 0:01:36.840 --> 0:01:38.760 when you ask a macro guy what's going on in 0:01:38.800 --> 0:01:41.839 the equity market and the bond market, you don't often 0:01:41.880 --> 0:01:45.040 get a candid response, So I appreciate that. I'm curious 0:01:45.080 --> 0:01:47.680 when we link what's happened with the interim piece deal 0:01:47.840 --> 0:01:50.480 with the state of central bank meetings this week. I 0:01:50.480 --> 0:01:52.960 believe there's more than twenty central bank decisions this week. 0:01:53.680 --> 0:01:55.520 Was this a gift to central bankers? Maybe not in 0:01:55.560 --> 0:01:57.640 the US, where we already know that the Fed's not 0:01:57.720 --> 0:01:59.920 going to do anything one way or another, but for 0:02:00.040 --> 0:02:04.200 other central banks. This is some kind of relief for them. 0:02:04.160 --> 0:02:07.520 One hundred percent. I mean you think about obviously headline inflation, 0:02:08.240 --> 0:02:10.760 the stress is real around what those numbers end up being. 0:02:10.800 --> 0:02:12.760 I mean, we look at the core. You know, I 0:02:12.760 --> 0:02:15.360 would argue there is some transmission coming in. But it 0:02:15.400 --> 0:02:17.600 was interesting to see the CPI report last week. We 0:02:17.639 --> 0:02:20.639 look at core goods. Core goods three month moving average 0:02:20.639 --> 0:02:23.839 core goods inflation is zero point one percent and six 0:02:23.880 --> 0:02:25.959 months moving out of zero point four. You're not seeing goods. 0:02:26.000 --> 0:02:28.800 Where you're seeing this latent inflation is quite frankly in 0:02:28.880 --> 0:02:32.560 services things like it, I mean, insurance a number in CPI. 0:02:33.000 --> 0:02:36.959 You look at that number, education, et cetera. So it's 0:02:36.960 --> 0:02:41.000 definitely helpful. It definitely takes places like the ECB that 0:02:41.080 --> 0:02:43.480 are looking at multiple hikes and you say, gosh, now 0:02:43.520 --> 0:02:46.440 maybe they don't have to move in multiple forms. So 0:02:46.760 --> 0:02:48.120 it is a big deal. I mean, it is a 0:02:48.120 --> 0:02:50.919 big deal for all markets when you think about central 0:02:50.960 --> 0:02:53.080 banks may not at the hike as much, and then 0:02:53.120 --> 0:02:55.040 you think about, you know, what does it mean for 0:02:55.080 --> 0:02:58.440 overall when you think about your MPV of owning the 0:02:58.440 --> 0:03:00.919 equity market if rates aren't going to move sigamantly higher. 0:03:00.919 --> 0:03:02.839 It's yeah, it's a it's a big deal. 0:03:03.360 --> 0:03:05.440 So the last time you're on the show, you had 0:03:05.480 --> 0:03:08.160 a clip that I put out on social media because 0:03:08.160 --> 0:03:10.680 I really it opened my eyes to this. I said, 0:03:10.800 --> 0:03:13.600 why would the FED cut? And you said, well, the 0:03:13.680 --> 0:03:16.800 reason is housing. That's why the FED should cut. And 0:03:16.800 --> 0:03:19.519 then they had a contest for who's going to be 0:03:19.560 --> 0:03:23.080 the FED share. Yeah, Kevin Warsh is the FED share. 0:03:23.440 --> 0:03:26.320 And they're now in between a rock and a hard 0:03:26.360 --> 0:03:28.240 place here because you do have some of these inflation 0:03:28.320 --> 0:03:30.960 numbers going up, but you do have this housing. 0:03:30.600 --> 0:03:31.919 Pressure which you brought up. 0:03:32.360 --> 0:03:34.960 And since you're back and all that's happened, since I 0:03:35.000 --> 0:03:36.840 want to get your take on what you would do. 0:03:37.040 --> 0:03:39.480 I mean what I would do. Well, I'm a positioned 0:03:39.480 --> 0:03:41.200 for what they will do, and I've learned in my 0:03:41.280 --> 0:03:45.040 career whatever I would do is interesting for my friends. 0:03:45.440 --> 0:03:47.800 But what I have position is what they're going to do. Listen, 0:03:47.880 --> 0:03:49.960 I think if you take that and go back to 0:03:49.960 --> 0:03:52.200 this inflation report and you're look at your break it down, 0:03:52.760 --> 0:03:56.680 the less interest sensitive sectors are experiencing healthcare, education, insurance 0:03:57.000 --> 0:04:00.160 sticky inflation, you're not really going to bring down healthcare 0:04:00.160 --> 0:04:02.520 costs by moving the funds rate. If you look at 0:04:02.520 --> 0:04:07.440 what happened that CPR port use cars, automobiles, small business, 0:04:07.560 --> 0:04:11.640 low income housing, those sectors are actually a not experiencing 0:04:11.720 --> 0:04:15.360 much inflation, if any at all, and B they're in 0:04:15.400 --> 0:04:18.640 a tough spot. So it's much more complex when you 0:04:18.640 --> 0:04:20.680 think about, particularly if you have a dual mandate, and 0:04:20.720 --> 0:04:26.480 you think about my mandate is actually employment and price stability. 0:04:26.960 --> 0:04:29.839 And today it's very hard to use the interest rate 0:04:29.880 --> 0:04:34.359 tool to manage automobile insurance. And so I think, and 0:04:34.520 --> 0:04:37.400 quite frankly, I think the new chair will use some 0:04:37.480 --> 0:04:40.040 other tools, and I think you'll look at the money supply. 0:04:40.240 --> 0:04:42.080 I'm certain he will. I'm certainly he will look at 0:04:42.080 --> 0:04:45.960 the balance sheet. This idea that the overnight funds rate 0:04:46.800 --> 0:04:50.840 is going to help modulate healthcare insurance doesn't make a 0:04:50.880 --> 0:04:54.000 lot of sense. But so I think you'll see a 0:04:54.080 --> 0:04:55.880 much more like how do we use balance sheet, how 0:04:55.880 --> 0:04:58.080 do we use money supply? And much more. And by 0:04:58.080 --> 0:05:00.600 the way, the front end of the yield curve, nobody 0:05:00.600 --> 0:05:03.679 really finances off the front end. It's all out the curve. 0:05:03.880 --> 0:05:07.840 How the chair manages long end interest rates? Particularly, you 0:05:07.880 --> 0:05:09.680 think about what does it mean for mortgages? What does 0:05:09.680 --> 0:05:12.560 it mean for other things? So listen, I wouldn't hike 0:05:12.880 --> 0:05:15.760 and but you know, we'll see you have a committee 0:05:15.760 --> 0:05:17.160 that's that's clearly hawkish. 0:05:17.240 --> 0:05:19.680 Let's keep the conversation going with Rick reader though he's 0:05:19.680 --> 0:05:23.320 still with us, he's still on set. Rick, appreciate your patience. 0:05:23.920 --> 0:05:27.640 Before we took a little bit of sound from the present. 0:05:27.640 --> 0:05:30.320 There we were talking about this upcoming Federal Reserve meeting, 0:05:30.400 --> 0:05:33.480 and you know how the news, how what we're seeing 0:05:33.560 --> 0:05:35.240 unfold in the Middle East when it comes to this 0:05:35.400 --> 0:05:38.640 MLU sort of factors into the trajectory for the FED 0:05:39.000 --> 0:05:41.840 going forward. But beyond the rate conversation, I do want 0:05:41.880 --> 0:05:44.680 to talk a little bit about the communication coming from 0:05:44.720 --> 0:05:47.679 the FED and how it might change going forward, because 0:05:47.720 --> 0:05:50.640 Kevin worsh I mean, he's made it clear he has 0:05:50.880 --> 0:05:54.360 not a lot of love for forward guidance, the dot plot. 0:05:54.480 --> 0:05:57.320 You know, all the press conferences that the FED has 0:05:57.600 --> 0:06:00.440 sort of tuned the market into. And I wonder you 0:06:00.440 --> 0:06:03.159 know whether or not you think the bond market, whether 0:06:03.240 --> 0:06:06.600 traders in general are prepared for a Federal Reserve that 0:06:06.839 --> 0:06:08.200 maybe communicates a little bit. 0:06:08.160 --> 0:06:11.440 Less you know, I mean, I'll say one thing. I'm 0:06:11.480 --> 0:06:14.040 a believer, and you don't need as much forward guidance. 0:06:14.160 --> 0:06:16.480 In fact, part of when you say as a bond 0:06:16.560 --> 0:06:19.880 mark prepared for it. If you're easing policy, you actually 0:06:19.920 --> 0:06:22.159 don't want people to be prepared for it. You want actually, 0:06:22.200 --> 0:06:24.040 I mean, one of the beauties of what the Fed 0:06:24.080 --> 0:06:26.920 has is its voice. When you're easing, it's very different 0:06:26.920 --> 0:06:29.360 than you're tightening. When you're tightening, you want to be foreshadowing. 0:06:29.400 --> 0:06:31.440 You want to be predictable in terms of how you're 0:06:31.480 --> 0:06:34.320 going to and wean people off of easier policy. When 0:06:34.320 --> 0:06:36.480 you're easing, you don't want that. You want to create 0:06:36.520 --> 0:06:39.680 animal spirits. You want to create economic velocity. And so 0:06:39.800 --> 0:06:43.120 I actually think not having forward guidance, or having less 0:06:43.120 --> 0:06:46.120 forward guidance actually a real tool that you can utilize 0:06:46.160 --> 0:06:51.560 going forward. Listen, I don't find the dot plot terrible utility. 0:06:51.600 --> 0:06:53.840 I mean for markets like to hone in on where 0:06:53.839 --> 0:06:57.559 it is to price the forwards. But listen, it's nineteen votes. 0:06:57.600 --> 0:06:59.440 You don't know who's who, you don't know. You know 0:06:59.440 --> 0:07:01.919 there are some more important ones than others. There's a 0:07:02.040 --> 0:07:04.960 there's a disparate process of how people fill out their 0:07:04.960 --> 0:07:07.920 dots among the nineteen. So I actually think it'll be 0:07:07.960 --> 0:07:09.760 a good idea. And you know, quite frankly, one of 0:07:09.760 --> 0:07:14.240 the for markets. Getting some volatility into the markets is 0:07:14.280 --> 0:07:15.800 a is a good thing. And I you know, I 0:07:15.840 --> 0:07:18.200 think I think people as long as you lay out 0:07:18.840 --> 0:07:21.160 here are the metrics that we're looking at, here are 0:07:21.200 --> 0:07:24.080 the parameters that the Fed's going to operate within, and 0:07:24.120 --> 0:07:26.240 as long as your caleer and articulate is this is 0:07:26.280 --> 0:07:29.040 what we are focused on, and then let the markets 0:07:29.040 --> 0:07:31.320 interpret it as the data presents itself. So anyway, I 0:07:31.320 --> 0:07:32.920 think it'll be I think it'll be refreshing, and I 0:07:32.960 --> 0:07:34.240 think it'll be I think it'll be helpful. 0:07:34.440 --> 0:07:35.680 And I think that's what a lot of people are 0:07:35.680 --> 0:07:39.080 counting on this meeting or this press conference this Wednesday 0:07:39.120 --> 0:07:40.880 to do for Kevin Wosh to kind of lay out 0:07:40.880 --> 0:07:44.000 his vision. One thing that we have heard from him 0:07:44.080 --> 0:07:46.040 in the past is that he is not a fan 0:07:46.160 --> 0:07:48.000 of the fed's balance sheet the size that it is 0:07:48.080 --> 0:07:50.920 right now. He wants to reduce that talk through what 0:07:50.960 --> 0:07:53.480 the implications of that is. There some concern that it 0:07:53.480 --> 0:07:55.480 could push up long term rates by forcing the market 0:07:55.560 --> 0:07:56.680 to absorb more bonds. 0:07:56.800 --> 0:07:58.560 So I mean that, I mean it's going to be 0:07:58.600 --> 0:08:00.280 a big deal. I mean, I think one of the 0:08:00.320 --> 0:08:03.560 things listen, I think he'll be very deliberate in reducing 0:08:03.560 --> 0:08:05.480 the balance sheet. I think one of the things the 0:08:05.520 --> 0:08:08.760 way financing works today it's very different in the past. 0:08:08.840 --> 0:08:11.240 You think about that, can the banks use to borrow short, 0:08:11.320 --> 0:08:15.600 lend long? And today it's very much. Financing is tranched 0:08:15.680 --> 0:08:17.960 the way we finance commercial real estate or residents or 0:08:17.960 --> 0:08:21.400 real estate or buy or credit, So it is very much. 0:08:21.440 --> 0:08:23.880 What is important is liquidity in the system, meaning if 0:08:23.920 --> 0:08:26.880 you reduce a balancet too quickly, it can be very disruptive. 0:08:26.920 --> 0:08:28.840 I am certain he's not going to go down that path. 0:08:29.480 --> 0:08:32.360 And the other thing that is really important is the 0:08:32.400 --> 0:08:35.120 shape of the yield curve. And I think how you 0:08:35.240 --> 0:08:38.080 utilize the balance sheet, and by the way, you can 0:08:38.120 --> 0:08:39.960 reduce the size of it. Because so much of our 0:08:40.320 --> 0:08:42.000 eighty nine percent of the dot in the United States 0:08:42.080 --> 0:08:45.000 is in zero to two years, it's actually not that much. 0:08:45.200 --> 0:08:47.600 None of what's on the Fed's balanchie today there's actually 0:08:47.600 --> 0:08:51.679 not much exposure duration, interest rate exposure out the yield curve. 0:08:52.160 --> 0:08:54.559 If you were thoughtful about how you use the balance sheet. 0:08:54.559 --> 0:08:56.920 In my senses they will be. You can actually keep 0:08:56.960 --> 0:09:00.640 long rates tethered and less volatile. Where you don't want 0:09:00.679 --> 0:09:03.320 to see the volatility is if you can keep longer 0:09:03.320 --> 0:09:05.920 in interest rates stable, we can get the mortgage rate 0:09:05.960 --> 0:09:08.480 down in this country, you can get housing velocity moving. 0:09:08.800 --> 0:09:10.559 That is going to be something really important, and I 0:09:10.559 --> 0:09:12.719 think the balance sheet is a big part of how 0:09:12.720 --> 0:09:13.199 you do that. 0:09:13.760 --> 0:09:17.000 I want to ask you about consumer sentiment. So stock 0:09:17.040 --> 0:09:19.880 market doing great, up thirteen percent since April. 0:09:20.520 --> 0:09:22.040 When you start to see these. 0:09:21.920 --> 0:09:25.360 Sentiment numbers from the University of Michigan come in as 0:09:25.400 --> 0:09:31.520 the worst since COVID and the Great Financial Crisis, it's 0:09:31.640 --> 0:09:32.760 tough for me to believe this. 0:09:33.840 --> 0:09:35.319 What do you make of that disparity? 0:09:35.360 --> 0:09:39.000 Because if this data were accurate and people were just 0:09:39.040 --> 0:09:41.240 going to stop spending, you'd think the market would pick 0:09:41.320 --> 0:09:45.280 up on it and not go bananas. So where's the 0:09:45.320 --> 0:09:46.840 disconnect there? What's going on? 0:09:47.400 --> 0:09:47.480 So? 0:09:47.679 --> 0:09:49.199 You know, I think, I said Matt Millane Show the 0:09:49.240 --> 0:09:51.640 other day, I don't really believe in the K shaped economy. 0:09:51.679 --> 0:09:53.160 I actually think it's I think I called it the 0:09:53.160 --> 0:09:56.120 three month old birthday cake. Like the icing is doing 0:09:56.320 --> 0:09:59.400 is still okay, it's underneath it's not, and what's underneath 0:09:59.480 --> 0:10:02.600 is much money, bigger. Seventy five percent of the economy 0:10:02.640 --> 0:10:04.600 I think is having a hard time. And so if 0:10:04.600 --> 0:10:06.880 you take part of what we talked about low income 0:10:06.960 --> 0:10:09.600 young people, you know, the housing market, I think most 0:10:09.640 --> 0:10:11.760 people are having a hard time when particularly when you 0:10:11.800 --> 0:10:15.280 get higher fuel prices, higher food prices, it does pressure 0:10:15.360 --> 0:10:17.760 consumer sentiment. And by the way, you see this in 0:10:17.800 --> 0:10:21.160 the earnings reports. I mean it's incredibly dichotomous in terms 0:10:21.160 --> 0:10:25.439 of where high end is doing, whether it's hotels, retailers, restaurants, 0:10:25.760 --> 0:10:27.240 and then where And by the way, I wouldn't just 0:10:27.240 --> 0:10:29.360 say it's low end. I say it's low to middle 0:10:29.559 --> 0:10:31.640 even a bit higher than that. So I think you 0:10:31.720 --> 0:10:34.920 have that dynamic and economy. The one the one thing 0:10:34.920 --> 0:10:37.760 I will say that's a travesty is actually most of 0:10:37.760 --> 0:10:40.960 what driving consumption in aggregate today is actually the top 0:10:41.000 --> 0:10:44.760 ten percent. So even though the consumer sentiment amongst the 0:10:44.760 --> 0:10:47.960 broad populace is not in great shape to share aggregates, 0:10:48.000 --> 0:10:49.959 spend there is not that large. So you can actually 0:10:50.040 --> 0:10:51.920 have an economy when you look at it tips of 0:10:51.960 --> 0:10:54.839 the waves and say, gosh, economy is doing pretty well 0:10:54.840 --> 0:10:58.120 in aggregate, but where most are actually having a hard time. 0:10:58.120 --> 0:10:59.680 It's part of why I have a different view on 0:11:00.080 --> 0:11:01.760 where I don't think rates have to go higher. 0:11:02.120 --> 0:11:04.920 So don't eat the cake, is what I'm saying. Say 0:11:05.040 --> 0:11:07.400 here and here it would no case that no exactly, 0:11:07.520 --> 0:11:10.600 So that's amazing. Maybe what's underneath doesn't look so good. 0:11:10.600 --> 0:11:12.280 I do want to get your thoughts on credit though, 0:11:12.320 --> 0:11:15.120 because there was a really interesting headline this morning coming 0:11:15.160 --> 0:11:18.679 from in Video with plans for a bond sale targeting 0:11:18.720 --> 0:11:21.240 twenty billion dollars. That would be in Video's first bond 0:11:21.240 --> 0:11:25.120 sale since twenty twenty one. And you sort of combined 0:11:25.160 --> 0:11:27.359 that idea with the fact that you're seeing the hyperscoes 0:11:27.720 --> 0:11:29.719 come out hit the bond market in a big way. 0:11:29.760 --> 0:11:32.960 You also have big equity issuance going on as well, 0:11:33.040 --> 0:11:35.439 especially not just in IPOs, you also have the likes 0:11:35.440 --> 0:11:39.040 of Alphabet raising equity as well. How are you thinking 0:11:39.040 --> 0:11:42.040 about that dynamic that when you look across bonds, you 0:11:42.040 --> 0:11:44.680 look across equities, you're seeing these big raises. How are 0:11:44.720 --> 0:11:47.440 you thinking about it in the context of portfolios such 0:11:47.440 --> 0:11:48.560 as bank It's. 0:11:48.400 --> 0:11:51.080 A great question. So first of all, you know I'm 0:11:51.120 --> 0:11:53.360 doing this. I'm not saying many decades now I've been 0:11:53.440 --> 0:11:56.040 doing this, but it's the most exciting time I've ever 0:11:56.080 --> 0:11:59.199 been around investing because you're seeing dead issuance, equity issuance, 0:11:59.559 --> 0:12:03.600 conferg loans with warrants, all sorts of funny because the 0:12:03.640 --> 0:12:05.800 truth is, they have to come in every market, by 0:12:05.840 --> 0:12:08.199 the way, they're coming us, coming in euro upcoming anywhere 0:12:08.200 --> 0:12:10.560 that they'll take it. There's a lot of financing coming. 0:12:10.640 --> 0:12:12.360 How do we think about it? Listen. I think some 0:12:12.520 --> 0:12:15.280 of it is, you know, some of the high quality 0:12:15.320 --> 0:12:19.400 paper that comes investment grade market is just okay. And 0:12:19.440 --> 0:12:20.960 by the way, there's more to come, as you said, 0:12:21.040 --> 0:12:24.760 including today. I think some more of the interesting converts 0:12:25.440 --> 0:12:28.360 of some of the structured financing that's coming, where you 0:12:28.400 --> 0:12:31.400 can really add some yield, maybe for a bit further 0:12:31.440 --> 0:12:33.640 down the capsack. Maybe some of these new companies that 0:12:33.679 --> 0:12:36.320 are coming. That's where I find it more interesting. Listen. 0:12:36.360 --> 0:12:39.040 I mean, they're you know, because the size is so big, 0:12:39.200 --> 0:12:42.040 there's some tactical opportunities to go in and then maybe 0:12:42.080 --> 0:12:45.800 reduce your exposure. But I think, like I said, doing 0:12:45.840 --> 0:12:47.839 some things that are a bit off the beaten path 0:12:48.080 --> 0:12:50.480 where you get some more yield, has been great for 0:12:50.559 --> 0:12:51.319 the portfolios. 0:12:51.520 --> 0:12:54.400 Okay, I have two quick lightning ground questions okay, and 0:12:54.480 --> 0:12:58.640 we have one minute okay, TLT it lures so many 0:12:58.800 --> 0:13:01.720 sailors to shipwreck. It's been going like this for about 0:13:01.720 --> 0:13:02.080 a year. 0:13:02.880 --> 0:13:06.440 Buy it or sell it? I don't think. I don't 0:13:06.440 --> 0:13:09.240 think long rates are going very far. So that's a 0:13:09.320 --> 0:13:12.280 terrible boring answer, but I think it's right by the way. 0:13:12.360 --> 0:13:15.000 I think the best expression is sell volatility against it, 0:13:15.240 --> 0:13:18.520 and that's been Volatility has been high, and that's been 0:13:18.520 --> 0:13:20.600 the best trade to selve all against it. 0:13:21.080 --> 0:13:23.559 One of your mutual funds, I believe, still loans a 0:13:23.600 --> 0:13:25.959 little bit of bitcoin, and you were one of the 0:13:26.000 --> 0:13:28.880 early people inside black Rock to get into it. It's 0:13:28.920 --> 0:13:32.160 now sold off fifty percent. Is it a buy now 0:13:32.280 --> 0:13:33.200 or are you going to wait more? 0:13:34.320 --> 0:13:37.920 Wow? These are specific questions, so listen. I think it's 0:13:37.960 --> 0:13:41.040 ultimately going considerably higher. I think the technicals there are 0:13:41.080 --> 0:13:43.959 some technical condition around it that goes as it to 0:13:44.040 --> 0:13:46.880 chop around. I think it's ultimately going higher. We're keeping 0:13:46.920 --> 0:13:49.559 it a pretty moderate exposure, quite frankly, because I think 0:13:49.559 --> 0:13:51.880 there's some other things that we are already we talked 0:13:51.880 --> 0:13:54.480 about in technology and some of the growth engines. By 0:13:54.480 --> 0:13:56.200 the way, there are places to get yield and things 0:13:56.280 --> 0:13:59.079 like some parts of the credit markets em that I 0:13:59.120 --> 0:14:01.000 felt like it's just so hey today and so we've 0:14:01.000 --> 0:14:03.760 reduced exposure. Ultimately, I think it's going higher, all. 0:14:03.720 --> 0:14:05.640 Right, Rick Reader, thank you so much for joining us today. 0:14:05.640 --> 0:14:05.800 Thanks. 0:14:06.040 --> 0:14:08.920 I appreciate the global fixed income at Blackrock and also 0:14:09.000 --> 0:14:11.319 head of the Blackrock Global Allocation Team.