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Speaker 1: Bloomberg Audio Studios, podcasts, radio news for Global.

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Speaker 2: Wall Street, Steve Weisman, Newburger Berman, Steve Weisman. If we

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Speaker 2: get an ed Yard Denny market, which is a melt up,

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Speaker 2: like he's calling it the Roaring twenties, he's got us

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Speaker 2: out up thirty percent out the next thirty years. If

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Speaker 2: we get a bull market of our childhood, how do

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Speaker 2: you adapt to that? How do you adapt to the

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Speaker 2: good times? If we get the good times, what do

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Speaker 2: you do?

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Speaker 3: I don't think I really have to adapt. I kind

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Speaker 3: of believe in good times. You know, the economy is fine.

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Speaker 3: The Fed at least at this point, seems to have

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Speaker 3: engineered I don't even know if it's a soft landing anymore.

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Speaker 3: And you know, the US economy is extremely dynamic. I mean,

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Speaker 3: the only negative scenario that I could construct, and it's

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Speaker 3: not my base case, I would just say, the probability

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Speaker 3: of it's not zero. It's just that it looks like

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Speaker 3: it's possible. Theomy is reaccelerating and then maybe at some

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Speaker 3: point inflation starts to go back up again and the

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Speaker 3: FED has to raise rates again.

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Speaker 4: That's the only negative scenario I could see at this point.

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Speaker 1: So where where are you, Steve on kind of your

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Speaker 1: Fed call? Where do you what do you think the

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Speaker 1: FED will do? What do you think it should do?

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Speaker 4: I think the FED should do nothing nice.

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Speaker 3: You know it an engineered something pretty amazing, which kind

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Speaker 3: of shocking to everybody, including me.

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Speaker 4: The economy is good, you know, why would you?

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Speaker 3: I mean, look, the worst case scenario for the FED

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Speaker 3: would be to actually, I think cut rates, the economy

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Speaker 3: gets stronger, inflation comes back, then you're then you're back

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Speaker 3: into the vulgar.

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Speaker 4: Situation of the early eighties.

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Speaker 3: The best thing to do would be just to patch

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Speaker 3: yourself on the back to clear victory and say we're

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Speaker 3: completely data dependent and if things start to weaken a

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Speaker 3: little bit, they can always cut rates. Otherwise, you know,

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Speaker 3: do nothing.

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Speaker 1: So is that is that something when you say, kind

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Speaker 1: of wait is June even later in the year waiting

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Speaker 1: for you?

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Speaker 4: I don't know. I think it leads till June. Okay.

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Speaker 3: After that, you know they probably do nothing anyway because

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Speaker 3: they don't want to be accused of getting involved in

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Speaker 3: an election, right right.

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Speaker 2: Steve Weison were celebrating Amazon into the Dow. I did

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Speaker 2: a lot of down mathematics overnight, and it's so silly.

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Speaker 2: It has a fifteen percent tech exposure, including a tech

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Speaker 2: exposure including minuscule into Cisco, where the street is twenty

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Speaker 2: seven to twenty eight percent tech exposure as well. How

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Speaker 2: do you approach this massive lifetime overweight in technology? Is

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Speaker 2: there a derivative strategy? Is there a portfolio optimization you

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Speaker 2: believe in?

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Speaker 3: Well, I do think in overweighting or at least equal

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Speaker 3: waiting tech is something you have to do. But I

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Speaker 3: think there are some themes that are direct offshoots of

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Speaker 3: tech that really should be examined by people that are

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Speaker 3: not technically in tech. And so, for example, because of

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Speaker 3: AI and the Nvidia chips which consume so much more

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Speaker 3: electricity and are hotter, the grid has to be improved

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Speaker 3: to their companies that benefit enormously. For construction companies that

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Speaker 3: benefit enormously from that that are not tech companies, the data.

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Speaker 4: Centers have to be cooled even more so.

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Speaker 3: There are companies that provide those type of services that

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Speaker 3: are going to do extremely well over the next couple

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Speaker 3: of years.

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Speaker 4: So there are offshoots.

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Speaker 3: From tech that are not technically technically tech that really

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Speaker 3: should be looked at very close closely.

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Speaker 1: So Steve I guess a lot of folks. I'd love

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Speaker 1: to get your market call where you're seeing opportunity here,

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Speaker 1: because you know, one of the debates that we hear

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Speaker 1: often is just do I stick and try to if

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Speaker 1: I'm not there get to the magnificent seven somehow when

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Speaker 1: I try to find some values in other parts of

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Speaker 1: the market, maybe I've missed that trade. So, coming out

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Speaker 1: of twenty three, when it was such a hot close

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Speaker 1: to the year, what do what do you think about

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Speaker 1: the tech and being a leader in this market?

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Speaker 3: You know, I think, Look, I think we're in a

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Speaker 3: bull market. In bull market, people love stories. They just

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Speaker 3: latch onto stories. It's what they think about, it's what

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Speaker 3: they dream about. And if you can invest in something

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Speaker 3: that has a story that people can really understand and

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Speaker 3: get positive about, that's something to do. So tech is

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Speaker 3: one such story. Infrastructure is a similar kind of story

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Speaker 3: that's going to last a long time. And there are

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Speaker 3: a few others, and those are the things that I

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Speaker 3: would focus on.

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Speaker 2: I'm Steve, we got to go to the banks. You've

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Speaker 2: done a lot of work on this, you claim of

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Speaker 2: a certain movie years ago, and so it's the financial

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Speaker 2: integrity of the system. Is there a flavor of bank

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Speaker 2: where you think there's value.

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Speaker 3: I am not worried about the financial integrity of the

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Speaker 3: United States. I actually think it's incredibly healthy, probably healthier than.

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Speaker 4: Any time in any way.

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Speaker 3: It's lifetime, so I'm not worried about systemic risk. There

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Speaker 3: is risk in the banks in terms of commercial real

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Speaker 3: estate exposure, but that's really a regional bank issue, not

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Speaker 3: a systemic problem. I just don't find banks a particularly

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Speaker 3: interesting investment theme to be involved with it all.

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Speaker 2: Why why is it that's really important? What I mean,

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Speaker 2: just as a general theme, is it just there's too

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Speaker 2: many banks.

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Speaker 3: I mean, first of all, you know, rates looks like

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Speaker 3: they're going to stay high, so therefore deposits are going

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Speaker 3: to slowly bleed out of the system into money market funds,

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Speaker 3: which means banks are going to have to remain tight,

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Speaker 3: which means their growth is not going to be is

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Speaker 3: not going to be great. The only positive thing you

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Speaker 3: could say at this point is that, assuming there's no recession,

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Speaker 3: credit quality will be fine. But that's hardly It's not

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Speaker 3: a story. It's not anything anybody gonna latch onto.

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Speaker 2: Do we have like another hour questions for mister absolutely

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Speaker 2: Steve Ice to thank you. We've got to get you

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Speaker 2: back on here. Long of discussion, we never even got

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Speaker 2: to private equity, private credit and debt, and I really

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Speaker 2: want to touch on that. Mister Iceman is with a

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Speaker 2: small shop Newburger Burman an important investor. We thank Global

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Speaker 2: Wall Street for your enthusiasm over guests like Steve Eisman