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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am

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Speaker 1: Eastern on Apple CarPlay and then broid Auto with the

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Speaker 1: Bloomberg Business App. Listen on demand wherever you get your podcasts,

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Speaker 1: or watch us live on YouTube.

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Speaker 2: And let's get more on housing store Paul us Economists

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Speaker 2: with Bloomberg Economics. It joins us now. So those mortgage apps,

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Speaker 2: let's start there for a second, up eleven percent. So

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Speaker 2: talk to about the refinancing that we saw here, because

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Speaker 2: I gotta say refinancing with a six handle. That does

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Speaker 2: surprise me. I thought we would have waited until we

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Speaker 2: got a lease down to the fives.

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Speaker 3: It's interesting. So there are folks who just had to

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Speaker 3: buy homes, they had to make moves for jobs, They

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Speaker 3: had to end up taking out mortgages over seven percent,

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Speaker 3: and those folks now have the opportunity to refly, right,

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Speaker 3: I mean, mortgage rates are now down about one hundred

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Speaker 3: and fifty basis points from the high post COVID even

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Speaker 3: just in the last month, or down about thirty basis points.

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Speaker 3: So for folks who bought a home because they had

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Speaker 3: to post COVID, there is some more enthusiasm about refinancing

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Speaker 3: if you unpack mortgage backed securities. Though overall, and this

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Speaker 3: is totally to your points, Alex, the average rate being

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Speaker 3: paid on existing homes, the average rate being paid by

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Speaker 3: homeowners is still a touch under four percent, so there

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Speaker 3: is still more room to run for refinancing. This I

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Speaker 3: think is probably, you know, just a little bit of

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Speaker 3: enthusiasm for folks who had to take out those long

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Speaker 3: term mortgages when rates were significantly higher than they are today.

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Speaker 4: It's interesting because we were just talking about KB Home.

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Speaker 4: Even though it's down today. Xhb's the ETF that tracks

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Speaker 4: the home building index, it's still up trading around records,

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Speaker 4: up around twenty eight percent year to date to outpacing

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Speaker 4: the broader SMP five hundred. But Bank of America actually

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Speaker 4: was talking about how in the three months before and

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Speaker 4: after the Fed cuts rates, homebuilder stocks have outperformed the

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Speaker 4: S and P five hundred and three of the last

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Speaker 4: five period. So wondering what particular level when it comes

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Speaker 4: to say mortgage rates, when you're because you're obviously covering

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Speaker 4: this very closely, do you feel like you'll see more

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Speaker 4: consumers come back in to try to refinance.

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Speaker 3: So it's a little bit tricky when you're thinking about

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Speaker 3: home builders versus when you're thinking about refinancing, right, because

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Speaker 3: you have a few different dynamics that are at play.

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Speaker 3: For people like people like Alex or people like me

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Speaker 3: who have low mortgage rates that are locked in, you're

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Speaker 3: not gonna end up seeing a rush to refinancing.

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Speaker 2: You know, we saw a rate to move is quite high.

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Speaker 3: Your hurdle rate, well, your hurdle rate to move is

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Speaker 3: like close to four yeah, right, So there's still a

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Speaker 3: a there's still a ton of room to run if

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Speaker 3: you think about home builders though, because nobody's rushing to refinance,

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Speaker 3: because nobody's rushing to move if they're an existing homeowner

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Speaker 3: because they've locked in that low rate, there is room

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Speaker 3: for home builders to sort of fill the gap for

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Speaker 3: new households that are being formed, young people who are

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Speaker 3: trying to buy their first home.

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Speaker 4: And like lack of inventory that was such a big

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Speaker 4: problem even before COVID, but then was exacerbated so much

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Speaker 4: that obviously that they were able to pick up that

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Speaker 4: side of it.

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Speaker 3: Extraordinary lack of inventory, especially for existing homes for sale.

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Speaker 3: The thing that I find shocking, and you'll probably have

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Speaker 3: more color on this. For home builders in particular, there

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Speaker 3: is still just a massive inventory of new homes new

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Speaker 3: construction and units that are currently under construction that are

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Speaker 3: available for sale. I mean levels unseen since early two

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Speaker 3: thousand and eight, when housing was obviously frothy. So that's

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Speaker 3: one thing that we have. These two forces that are

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Speaker 3: diverging for new homebuilders. One is just this earth of

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Speaker 3: existing homes for sale, but you do have this mounting

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Speaker 3: inventory of new homes for sale that I think is

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Speaker 3: going to keep home prices new home prices under pressure

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Speaker 3: for quite some time.

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Speaker 2: Which also spakes a question like the transmission policy mechanism

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Speaker 2: from the FED, when you have sort of these structural

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Speaker 2: issues that have nothing to do with what the FED

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Speaker 2: actually does, and that's an interesting sort of dynamic.

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Speaker 3: There was an early there was a question, maybe it

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Speaker 3: was in the March press conference JPL March press conference

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Speaker 3: following the FOMC meeting, where somebody asked, they said, look,

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Speaker 3: you cut rates to the bone during COVID, everybody refines

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Speaker 3: sub four percent, and now the transmission of monetary policy

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Speaker 3: while you're trying to tighten rates is really really slow.

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Speaker 3: Do you regret doing that? And he basically said, no regrets,

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Speaker 3: but yeah, I mean interest rate policy has been moving

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Speaker 3: very very slowly through the real economy. Housing is the

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Speaker 3: number one sector for monetary policy and rates policy to

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Speaker 3: move into the real economy. Instead, you're seeing communication tools

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Speaker 3: moving into financial markets actually really quickly. The second somebody

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Speaker 3: shows their hand just a little bit, you see a

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Speaker 3: monster move in two your eelds, for example. So different

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Speaker 3: policy tools moving at different speeds into different parts of

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Speaker 3: the economy.

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Speaker 2: It's really interesting. All right, Thank you so much, Stewart,

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Speaker 2: appreciate it. Stuart Paul Us economists with Bloomberg Economics.

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Speaker 4: On that.

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Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

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Speaker 2: I want to take a moment here and get dive

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Speaker 2: into geopolitics to take a look at what's happening with

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Speaker 2: Israel and Hesbela. Israel stepping up its heaviest air attacks

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Speaker 2: on Hesbela targets in Lebanon since two thousand and six,

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Speaker 2: after shooting down the first missile ever fired by the

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Speaker 2: militant group at Tel Aviv. Joining us now in studio

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Speaker 2: is Bobby Gosh, Bloomberg News Senior editor. Bobby, can you

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Speaker 2: walk us through the sequence of events in the recent

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Speaker 2: week that got us here and what things you're looking

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Speaker 2: at over the next day forty eight twenty four hours.

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Speaker 5: Yeah, it started, you remember with those those pages that

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Speaker 5: went off, the thousands of pages exploded, most of them

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Speaker 5: belonging to hesbe law operatives and fighters. The suspicion is

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Speaker 5: that Israel was responsible for them. Israel as neither confirmed

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Speaker 5: nor denied it, which is there very much in the

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Speaker 5: Israeli m A. The following day there was a whole

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Speaker 5: bunch of walkie talkies, again many of them belonging to

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Speaker 5: Hisbellah commanders and fighters, that went off. Israel also then

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Speaker 5: began targeted attacks against top level Hisbella commanders, the types

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Speaker 5: of people who would be very important in the event

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Speaker 5: of an all out war between Hesbellah and Israel. Simultaneously,

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Speaker 5: Israel has been essentially attacking targets across its borders with Lebanon,

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Speaker 5: specifically targeting missile bases, rocket launching facilities. It's all designed

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Speaker 5: to reduce Hisbellah's ability to strike at Israeli targets. Israel

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Speaker 5: says that the objective is to allow Israelis who had

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Speaker 5: been living close to the border and who for many

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Speaker 5: months now were forced to leave their homes. It's that

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Speaker 5: this entire campaign is designed to allow those Israelis to

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Speaker 5: go back to their homes and live in relative peace.

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Speaker 5: But depending on how you want to look at it,

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Speaker 5: this can also seem like an attempt to soften up

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Speaker 5: Hezbelah for a larger campaign by Israel, whether that is

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Speaker 5: a ground campaign or a campaign from the air. It

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Speaker 5: can't give that impression.

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Speaker 4: What has the Biden administration said about these latest earstrikes?

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Speaker 4: Because I know that Joe Biden just gave his final

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Speaker 4: address to the UN General Assembly this week.

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Speaker 5: Well, the Biden administration for months and months now has

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Speaker 5: been saying pretty much the same thing. On the one hand,

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Speaker 5: it continuously repeats the chiboulette that Israel has a right

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Speaker 5: to defend itself as it does, but at the same

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Speaker 5: time it says that Israel should not escalate tensions in

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Speaker 5: the region with its neighbors, and it has been warning

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Speaker 5: against the risk of a larger war that will draw

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Speaker 5: in Iran, which is Hisbella's main patron, which might draw

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Speaker 5: in the United States. The problem is, of course, that

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Speaker 5: all of that rhetoric from the Biden administration does not

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Speaker 5: seem to be moving the needle. Prime Minister Natanya, who

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Speaker 5: of Israel, seems to be operating on his own agenda,

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Speaker 5: pursuing his own interests and paying almost no heed at

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Speaker 5: all to the American president, which is not a good

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Speaker 5: look for the United States.

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Speaker 2: Well, I thought it was so interesting because as we

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Speaker 2: were President Biden was speaking yesterday at the UN, we

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Speaker 2: were also getting headlines on the terminal about Netanyahu and

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Speaker 2: some things saying he was saying that was not peace

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Speaker 2: and unity and ending the.

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Speaker 4: War in Gaza.

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Speaker 2: So it was very striking. What do you think, how

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Speaker 2: do you think the election impacts this in terms of

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Speaker 2: what Hesbal and Israel are thinking with six weeks to

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Speaker 2: kind of go.

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Speaker 5: Well, there's a school of thought in Israel and in

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Speaker 5: some quarters in this country that Bibi Natnia was holding

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Speaker 5: out for the election, that he's not going to change

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Speaker 5: tech until there's an election. Until there's a new president

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Speaker 5: in the United States. And according to this school of thought,

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Speaker 5: he's betting on Donald Trump to return to the to

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Speaker 5: the presidency on the assumption that Donald Trump will be

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Speaker 5: more permissive and allow him a freer hand. I don't

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Speaker 5: buy that, for one thing, more permissive than what It's

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Speaker 5: not like Biden has really been restraining that Yahoo, There's

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Speaker 5: only been rhetorical attempts at restraining him. That that's not working.

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Speaker 5: And also I don't think necessarily that Donald Trump wants

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Speaker 5: to come to the office with a major conflict in

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Speaker 5: the Middle East to deal with. Remember, the big part

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Speaker 5: of his message to his voter base is America first.

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Speaker 5: The United States should not get involved too much in

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Speaker 5: foreign affairs, should get out of the old conflicts, particularly

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Speaker 5: in the Middle East. So if that is indeed bb

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Speaker 5: Netniaho's calculus that Donald Trump would be better for him

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Speaker 5: than Biden, I think he may have to calculate again.

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Speaker 2: Such a pleasure to talk to you. You are always

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Speaker 2: such a great reporter and you definitely help paint a

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Speaker 2: picture for us. Bobby Goes Bloomberg, new senior editor, joining

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Speaker 2: us on the latest between Hesbula Israel, as well as Goza.

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Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on fo Cardplay and then

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Speaker 1: broyd Otto with the Bloomberg Business App. Listen on demand

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Speaker 1: wherever you get your podcasts, or watch us live on YouTube.

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Speaker 2: I'm Alex d alongside Jun Tuck Gerndis Menon. Paul Sweeni

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Speaker 2: is off today. This is Bloomberg Intelligence Radio and we

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Speaker 2: are broadcasting to live from Interactive Broker Studio right here

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Speaker 2: in Midtown Manhattan where Gridlock reigns. Want to get a

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Speaker 2: take on the market.

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Speaker 4: Here.

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Speaker 2: Nothing's going on, so it's a good time to kind

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Speaker 2: of recalibrate. What do you do as yields kind of

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Speaker 2: come down the back end, though still stays a little

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Speaker 2: bit higher. How do you position yourself for that when

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Speaker 2: tech also is still outperforming. Nancy Dowd, a private wealth

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Speaker 2: advisor at Americpriz Financial and CEO of Opus, joins us

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Speaker 2: now to discuss her take on the markets. Nancy, we've

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Speaker 2: sort of gotten through a seminal moment with the Fed.

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Speaker 2: How do you need to rethink what your portfolio looks like?

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Speaker 6: So it was a big surprise.

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Speaker 7: We all bet on a quarter of a point cut,

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Speaker 7: but I guess the FED decided to frontload the rate cuts,

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Speaker 7: although overall the plan is still the same is to

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Speaker 7: you know, to get to a certain target or by

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Speaker 7: three percent by midyear twenty twenty six. So it was

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Speaker 7: a bit of an enigma as to why they front

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Speaker 7: loaded this rate cut, But in digging deeper in the details,

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Speaker 7: the justification really had to do largely with the inflation

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Speaker 7: numbers not being quite where they really want them to be,

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Speaker 7: at least two out of the three that they watch,

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Speaker 7: and also the employment numbers are weakening, and that gave

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Speaker 7: a little bit of concern to the FED, so they

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Speaker 7: just cut more aggressively. So now this is what we're

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Speaker 7: dealing with. And I think the biggest impact was mortgage

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Speaker 7: mortgage applications. I think that's probably the biggest impact in

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Speaker 7: the last two weeks.

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Speaker 4: So what do you think the playbook is as far

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Speaker 4: as what you're advising clients to buy, what you're advising

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Speaker 4: them to sell, because traditionally, I mean, every rate cutting

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Speaker 4: cycle can be very different, but normally you would see

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Speaker 4: safe for instance, bond proxy sectors like utilities outperform and

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Speaker 4: tech underperform. The first six months after rate cut. But

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Speaker 4: you've already had sectors like utilities taking off a lot

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Speaker 4: of that's tied to the AI store and this sector

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Speaker 4: is the second best performer in the S and P

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Speaker 4: five hundred so far this year. So where do you

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Speaker 4: put your money.

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Speaker 7: Well, if you're fully invested, clearly stay the course. But

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Speaker 7: I think that the reaction over the last six weeks

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Speaker 7: and certainly over the last two weeks is way overdone

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Speaker 7: in the stock market, and I would err on the

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Speaker 7: side of caution that I think we are probably due

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Speaker 7: for a pullback or even a correction or more. It

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Speaker 7: wouldn't be so unreasonable at this time because it's this

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Speaker 7: is just overdone.

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Speaker 4: So would you use them to add to you know,

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Speaker 4: use that as a buying opportunity.

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Speaker 7: Well, yeah, absolutely, that's the best time because longer term

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Speaker 7: prospects obviously are very good. So if there is this

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Speaker 7: correction or pull back, it's a grand opportunity to buy

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Speaker 7: in or rebalanced, reconsolidate how you're allocated according to your

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Speaker 7: timeframe and your risk tolerance. But certainly the sectors that

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Speaker 7: you mentioned are very attractive. You know, defensive stocks will

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Speaker 7: be a good play right now, such as materials, industrials, utilities.

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Speaker 7: The big enigma really is energy. You know, I still

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Speaker 7: look into energy, but the big enigma has been why,

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Speaker 7: with all the geopolitical risk that we are experiencing, and

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Speaker 7: more and more so in the last week or so,

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Speaker 7: why energy is down. That's a enigma, but I would

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Speaker 7: I would still buy it.

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Speaker 2: When you take a look at, say, if you don't

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Speaker 2: get the draw down, one part of that story is like, hey,

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Speaker 2: there's over six million dollars sitting in money market funds

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Speaker 2: that belong somewhere. Does it go into the equity market,

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Speaker 2: does it go into the bond market? Do you think

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Speaker 2: that that is part of this story that we're going

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Speaker 2: to see?

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Speaker 7: Well, clearly, broader diversification is highly indicated at this time.

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Speaker 7: When you're too concentrated in one sector, you feel the

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Speaker 7: volatility and the pullback will be felt significantly more, especially

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Speaker 7: in the technology sector because that tends to be significantly

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Speaker 7: more volatile. But diversification is very good right now, especially

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Speaker 7: in the fixed income side, still maintaining shorter durations because

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Speaker 7: it's still very iffy with the rate cuts. And I

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Speaker 7: do believe that the geopolitical risk is just being ignored

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Speaker 7: and is not factored into the market, and when that

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Speaker 7: does happen, it could be significant.

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Speaker 4: I know that you've previously used a four percent inflation

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Speaker 4: assumption in your financial plans the past few decades. I'm

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Speaker 4: sure just given where the dynamic inflation was prior to COVID,

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Speaker 4: maybe your clients didn't appreciate it as fully until recent years.

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Speaker 4: But with inflation have been closer to that two percent target.

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Speaker 4: How does that impact how you construct your portfolio models.

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Speaker 4: Is that something that you'll still include or are you

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Speaker 4: going to adjust that now?

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Speaker 7: No, I will not be adjusting it because by using

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Speaker 7: a more conservative inflation rate it has really helped my

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Speaker 7: clients achieve their outcomes much better. Because remember, you know,

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Speaker 7: the overall inflation rate is not the same as the

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Speaker 7: day to day inflation rate. I'm talking about food, gas, electricity,

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Speaker 7: and heat, which is these are the non negotiables of

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Speaker 7: everyday living. You may give up buying, going to go

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Speaker 7: around out to eat, to travel, or discretionary spending, but

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Speaker 7: you're never going to give up food, gas, and electricity.

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Speaker 7: So these are the things that matter the most, and

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Speaker 7: in fact, those are the things that go up the

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Speaker 7: most over the last three to four decades that I've

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Speaker 7: been advising clients.

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Speaker 2: All right, thank you very much, and see we really

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Speaker 2: appreciate Nancy Dawd joining US private wealth advisor at Maryripri's

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Speaker 2: Financial and CEO of Opus. On the markets.

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Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on applecar Play and Android

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Speaker 2: This is Bloomberg Intelligence Radio. We cover all the top

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Speaker 2: news in business, economics and finance. And right now in

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Speaker 2: New York City, what's happening is you have the You

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Speaker 2: and General Assembly, and you have Climate Week. So the

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Speaker 2: benefit is we get a lot of companies now coming

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Speaker 2: in that are involved in the energy transition. Then we

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Speaker 2: get to talk to them about the really cool stuff

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Speaker 2: that they're doing. And one of them is a company

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Speaker 2: called a MSc. Now you just look at a chart

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Speaker 2: of its market cap. Over the last five years, it

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Speaker 2: went for about two hundred million dollars to now almost

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Speaker 2: a billion dollars. It's been a tremendous rise.

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Speaker 4: It stocks up one hundred and sixteen percent year to date.

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Speaker 2: What does it do? I'm not really sure. It's called

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Speaker 2: American Superconductor Corporation or CEO is here to break it

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Speaker 2: all down for us. Dan McGann joining us. All right, Daniel,

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Speaker 2: what do you guys do? Break it down?

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Speaker 8: We basically provide resiliency equipment for the grid. Today, we

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Speaker 8: help bring more renewables onto the grid and we have

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Speaker 8: a nascent business that's starting to grow pretty rapidly supporting

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Speaker 8: ships in the fleet to protect them from harm's way.

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Speaker 2: So do you like make the stuff that helps a

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Speaker 2: solar farm plug into the grid?

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Speaker 8: Are you like we're the big equipment that sits on

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Speaker 8: the grid that allows that power to be able to

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Speaker 8: come on and make sure it harmonizes with the grid

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Speaker 8: in the way that the grid can accept it and

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Speaker 8: take it.

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Speaker 2: There's been a shortage of this stuff, right, like a

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Speaker 2: huge backlog and shortage of the stuff that you make.

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Speaker 8: Yeah, we just had a record quarter where we delivered

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Speaker 8: new orders about one hundred and twenty seven million. Just

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Speaker 8: to put it in context, we're about one hundred and

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Speaker 8: forty six for the entire year. We grew last quarter

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Speaker 8: thirty percent versus the year ago period, and we just

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Speaker 8: guide it for thirty percent growth quarter on quarter, so

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Speaker 8: we're kind of hitting it out of the park on

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Speaker 8: all levels right now.

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Speaker 4: And you've also made some recent acquisitions. I read about

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Speaker 4: how and WL. It's a private company based in New

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Speaker 4: Jersey that provides power supplies in industrial and military customers.

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Speaker 4: But then also you're getting into the wind turbine electrical

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Speaker 4: control systems with some recent deals as well. So how

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Speaker 4: much do you expect those types of deals to help

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Speaker 4: bolster your revenue growth moving forward?

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Speaker 8: Yeah, we think that the backlog continues to grow. I

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Speaker 8: think we went up from about one forty last quarter

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Speaker 8: to about one sixty for the twelve month backlog. Total

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Speaker 8: backlog for all time is even higher than probably two

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Speaker 8: hundred or so, so we're in well positioned to kind

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Speaker 8: of grow quarter on quarter here. That's what we just

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Speaker 8: updated our guidance for the current quarter, which we'll end

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Speaker 8: here in a week or so, and we think we're

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Speaker 8: well positioned. I mean, the past year has been fantastic

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Speaker 8: for us. We went from being really excited about reaching

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Speaker 8: thirty million per quarter on a revenue basis to now

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Speaker 8: we just goid it to fifty, So the business is

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Speaker 8: really taking off. It's very healthy, and then the backlog

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Speaker 8: is very deep along all product lines.

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Speaker 2: What's the biggest constraint that you have in delivering the

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Speaker 2: key product that everyone needs to then connect.

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Speaker 3: To the grid.

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Speaker 8: I think if you'd asked me that question a couple

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Speaker 8: of years ago, I would say supply chain was part

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Speaker 8: of it, just to be able to deal with the speed.

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Speaker 8: Now it's really we're scaling, we're scaling production, we're hiring,

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Speaker 8: So it's really typical type business challenges on how do

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Speaker 8: you manage that growth and how do you remain effective

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Speaker 8: for your customers as you grow?

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Speaker 4: And what are some of the top questions or concerns

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Speaker 4: you're actually hearing from your customers at this point. What

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Speaker 4: do you think that tells us about the direction of

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Speaker 4: the economy.

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Speaker 8: I think the good signs we've seen as we've seen

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Speaker 8: lead times on our pum drop, so our lead times

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Speaker 8: at one point we're approaching eighteen months on some products,

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Speaker 8: and now we have stuff today we're delivered in four

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Speaker 8: or five six months. So wow, the demand is growing

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Speaker 8: and the demand for products sooner is growing as well,

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Speaker 8: and that's really a competitive vantage for us. In the market.

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Speaker 4: Do you have a better way to move electrons? I

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Speaker 4: mean the name implies, you know, superconductors.

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Speaker 8: So at the heart of what we do, particularly on

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Speaker 8: the ship business, is about superconductors. So we move electricity

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Speaker 8: in a much better way.

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Speaker 4: But you've got to keep that really cold.

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Speaker 8: For super cold. Yeah, we do that as well. So

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Speaker 8: that's part of our scope and what we that's very cool.

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Speaker 8: We do a fully integrated system for the US Navy

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Speaker 8: and we just got a contract nexcess to seventy five

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Speaker 8: million dollars for the Royal Canadian Navy, so we're going

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Speaker 8: to be on Canadian ships as well, and that's all superconductor.

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Speaker 4: So with better lead times, is that just due to

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Speaker 4: the supply constraints with the chain just they're not as

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Speaker 4: bad as they would have been.

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Speaker 8: Because they're not as bad, we've done more to be

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Speaker 8: able to plan what we're seeing as customers not buying

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Speaker 8: a few, but buying many, which allows us to be

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Speaker 8: able to better plan our production and be able to

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Speaker 8: plan our supply. So part of our growth has been

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Speaker 8: larger projects, larger orders, and multiple units of the same type,

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Speaker 8: which has been great for us for our business.

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Speaker 2: So let's Broughden out for a second. We've had a

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Speaker 2: couple of AI data centers and energy deals. Amazon went

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Speaker 2: the way of like, here's my own little power center

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Speaker 2: that I'm going to use and connect directly to it.

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Speaker 2: Microsoft went more of the way, Hey, we're going to

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Speaker 2: buy contracts from Constellation Energy. Constellation Energy is going to

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Speaker 2: re up at one of its nuclear facilities and connect

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Speaker 2: that to the grid. How do you foresee these partnerships

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Speaker 2: moving forward and how does that affect you guys?

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Speaker 8: I think it affects us because the rising tide lifts

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Speaker 8: all boats. There's a huge investment in making the grid

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Speaker 8: more resilient. There's more demand, be it from data, be

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Speaker 8: it from AI. We see a huge potential boom coming

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Speaker 8: for us because we provide power control solutions for semiconductor fabs.

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Speaker 8: There's a huge move in our country to reshore that capability.

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Speaker 8: Each of the chip makers I think individually of an

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Speaker 8: so at least twenty billion dollars a capital investment in

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Speaker 8: new fabs, and that's all going to benefit for us

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Speaker 8: as well, because we're building the substation level equipment. These

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Speaker 8: are big pieces of equipment. They're ten twenty some cases

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Speaker 8: sixty tons they're like big mobile home type size, which

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Speaker 8: we love.

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Speaker 2: A little confidence it all gets built because even Intel

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Speaker 2: had to pair back some of those plans.

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Speaker 8: Yeah, they build a fraction of it. It's going to

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Speaker 8: be a home run for us. So I know, you

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Speaker 8: know what people talked about. We have a play in

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Speaker 8: electric vehicles and hybrid vehicles because we supply the power

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Speaker 8: control equipment for the people that make the feedstocks that

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Speaker 8: go into those. I think that if we're even able

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Speaker 8: to get to a fraction and what people hope and desire,

438
00:22:38,520 --> 00:22:40,399
Speaker 8: I think it's a It's a big deal for our business.

439
00:22:40,800 --> 00:22:41,480
Speaker 2: So what's next?

440
00:22:41,560 --> 00:22:44,119
Speaker 4: Any other potential acquisitions you want to maybe tell us

441
00:22:44,119 --> 00:22:44,399
Speaker 4: about it.

442
00:22:44,520 --> 00:22:46,280
Speaker 8: We have a lot of people that approach us. We've

443
00:22:46,359 --> 00:22:48,760
Speaker 8: done over a few year period here, we've done a

444
00:22:48,840 --> 00:22:52,560
Speaker 8: number of acquisitions. They've all worked really, really well. You know,

445
00:22:52,680 --> 00:22:56,000
Speaker 8: we focus on good people with a good product, so

446
00:22:56,520 --> 00:22:59,040
Speaker 8: you know, we find that there's a lot of inbound

447
00:22:59,080 --> 00:23:01,439
Speaker 8: traffic our ways. You know, would this be a good

448
00:23:01,480 --> 00:23:03,639
Speaker 8: fit for where we are. We think we can continue

449
00:23:03,680 --> 00:23:06,200
Speaker 8: to grow organically and in organically the business. We have

450
00:23:06,280 --> 00:23:09,000
Speaker 8: a wonderful platform globally to be able to sell. We

451
00:23:09,080 --> 00:23:11,160
Speaker 8: have a great brand in the market and we want

452
00:23:11,200 --> 00:23:12,960
Speaker 8: to continue to leverage that. Really, at the end of

453
00:23:13,000 --> 00:23:15,280
Speaker 8: the day, we want to serve what our customers need

454
00:23:15,400 --> 00:23:17,600
Speaker 8: and try to be there ahead of them before they

455
00:23:17,680 --> 00:23:18,119
Speaker 8: really need it.

456
00:23:18,200 --> 00:23:19,760
Speaker 2: All right, Daniel, we really appreciate it. Thank you so

457
00:23:19,880 --> 00:23:24,840
Speaker 2: much for stopping by. Daniel McGahn amsc CEO joining US

458
00:23:25,400 --> 00:23:28,080
Speaker 2: American super Conductor. It's a great name, it is.

459
00:23:28,200 --> 00:23:29,920
Speaker 4: I was looking at the A in our function in

460
00:23:29,960 --> 00:23:32,840
Speaker 4: the terminal there's three buys A zero hold zero cells

461
00:23:32,920 --> 00:23:33,239
Speaker 4: right now.

462
00:23:33,400 --> 00:23:36,160
Speaker 2: I mean, when you have the broader thesis, it's hard

463
00:23:36,200 --> 00:23:38,200
Speaker 2: to kind of find ourselves there at the end of

464
00:23:38,200 --> 00:23:40,560
Speaker 2: the day. I think it just depends also on where

465
00:23:40,600 --> 00:23:43,000
Speaker 2: we go, say with the presidential election. That's obviously a

466
00:23:43,040 --> 00:23:45,800
Speaker 2: conversation that percolates right now during Climate Week. If we

467
00:23:45,840 --> 00:23:48,439
Speaker 2: get a different administration, like a Trump administration, does all

468
00:23:48,480 --> 00:23:51,639
Speaker 2: of this wind up changing. I mean, many are going

469
00:23:51,720 --> 00:23:55,240
Speaker 2: to say no, because the jobs are already in Republican states.

470
00:23:55,280 --> 00:23:58,520
Speaker 2: For example, there's a great piece out from Jennifer Dooley

471
00:23:58,600 --> 00:24:00,840
Speaker 2: that sort of looks at that shows that a lot

472
00:24:00,880 --> 00:24:02,440
Speaker 2: of the jobs at of from clean energy are in

473
00:24:02,520 --> 00:24:03,320
Speaker 2: Republican states.

474
00:24:03,560 --> 00:24:05,560
Speaker 4: Yeah, it's really fascinating to see kind of where this

475
00:24:05,680 --> 00:24:07,280
Speaker 4: is headed. But what a run for the stock, over

476
00:24:07,320 --> 00:24:08,680
Speaker 4: one hundred percent gain here to date.

477
00:24:08,920 --> 00:24:14,280
Speaker 1: Yeah, you're listening to the Bloomberg Intelligence Podcast. Catch us

478
00:24:14,359 --> 00:24:17,600
Speaker 1: live weekdays at ten am Eastern on applecar Play and

479
00:24:17,760 --> 00:24:20,600
Speaker 1: Android Auto with the Bloomberg Business Act. You can also

480
00:24:20,720 --> 00:24:24,200
Speaker 1: listen live on Amazon Alexa from our flagship New York station.

481
00:24:24,600 --> 00:24:27,359
Speaker 1: Just say Alexa play Bloomberg eleven thirty.

482
00:24:29,119 --> 00:24:30,760
Speaker 2: All right, well, let's get more on this nep and

483
00:24:30,800 --> 00:24:33,680
Speaker 2: market here. Alex Steel just mentioned John Tucker Bloomberg Intelligence

484
00:24:33,760 --> 00:24:36,639
Speaker 2: Radio Michael Kugino as president and portfolio manager at the

485
00:24:36,680 --> 00:24:40,320
Speaker 2: Permanent Portfolio family of funds, to discuss the latest on

486
00:24:40,680 --> 00:24:43,320
Speaker 2: the market. So there's really nothing happening today under the hood.

487
00:24:43,320 --> 00:24:44,919
Speaker 2: There's some fun stuff. You are seeing a sell off

488
00:24:44,960 --> 00:24:46,640
Speaker 2: in the bond market, so this is a great time

489
00:24:46,760 --> 00:24:49,760
Speaker 2: to talk about the individual stocks. Michael, that float your boat.

490
00:24:51,480 --> 00:24:55,280
Speaker 9: He good morning, Alex. We're pretty diversified with respect to

491
00:24:55,359 --> 00:24:57,280
Speaker 9: our equity holdings. I mean, when you look at the

492
00:24:57,280 --> 00:24:59,800
Speaker 9: stock market, the S and P five hundred today, it's

493
00:25:00,119 --> 00:25:04,439
Speaker 9: rating about what twenty one twenty two times earnings earnings

494
00:25:04,560 --> 00:25:06,639
Speaker 9: yield about four and a half, four and three quarters

495
00:25:06,720 --> 00:25:10,840
Speaker 9: percent as compared to the Fed funds rate right now

496
00:25:10,880 --> 00:25:14,120
Speaker 9: with the Feds move last week of roughly four seventy.

497
00:25:13,880 --> 00:25:14,720
Speaker 6: Five five percent.

498
00:25:14,880 --> 00:25:18,240
Speaker 9: So you have this rough earnings yield equivalent, and it

499
00:25:18,320 --> 00:25:20,600
Speaker 9: becomes a question of what kind of an investor are you.

500
00:25:20,680 --> 00:25:24,160
Speaker 9: Are you growth oriented in which case it's a reasonable

501
00:25:24,280 --> 00:25:27,080
Speaker 9: return for equities plus you get the growth kicker, or

502
00:25:27,119 --> 00:25:29,320
Speaker 9: if you're more conservative, you want to take that sort

503
00:25:29,359 --> 00:25:33,200
Speaker 9: of interest yield and not take on a lot of risks.

504
00:25:33,400 --> 00:25:36,160
Speaker 9: So for us, we actually own both. We're in bonds

505
00:25:36,200 --> 00:25:39,119
Speaker 9: and we're in stocks. On the equity side, we have

506
00:25:39,240 --> 00:25:42,600
Speaker 9: a diversified approach. Like I mentioned, names that come to

507
00:25:42,720 --> 00:25:46,360
Speaker 9: mind would be a Lockheed Martin and aerospace and defense,

508
00:25:47,240 --> 00:25:51,080
Speaker 9: a costco in terms of retail, Freeport Macmaran in terms

509
00:25:51,119 --> 00:25:54,840
Speaker 9: of copper and natural resources, and a mix of energy

510
00:25:55,280 --> 00:25:58,880
Speaker 9: which has been beaten down lately with Chevron and Exxon

511
00:25:59,000 --> 00:26:02,280
Speaker 9: on the integrated side, and then some smaller, uh, you know,

512
00:26:02,440 --> 00:26:06,719
Speaker 9: producers as well. Then we do have technology. We're an investor,

513
00:26:06,800 --> 00:26:12,639
Speaker 9: you know, we're an investor in video and meta and

514
00:26:12,800 --> 00:26:16,040
Speaker 9: so you can see that's not one theme playing there.

515
00:26:16,560 --> 00:26:19,080
Speaker 4: You mentioned stocks and bonds. Another area that I know

516
00:26:19,359 --> 00:26:21,800
Speaker 4: that you had exposure to you earlier this year was

517
00:26:21,880 --> 00:26:23,600
Speaker 4: gold and it's had a banner year if you looked

518
00:26:23,600 --> 00:26:26,000
Speaker 4: at those spot prices up more than twenty percent. So

519
00:26:26,520 --> 00:26:29,280
Speaker 4: obviously on the back of those record highs there with

520
00:26:29,440 --> 00:26:32,040
Speaker 4: ray cup bets and a week er dollar. Earlier this year,

521
00:26:32,119 --> 00:26:34,480
Speaker 4: you had around twenty percent target weight in gold. Do

522
00:26:34,560 --> 00:26:36,760
Speaker 4: you still have a weight like that and what's your

523
00:26:36,840 --> 00:26:39,480
Speaker 4: highest asset class as far as what your current holding is.

524
00:26:41,600 --> 00:26:45,160
Speaker 9: Yeah, our weighting right now, our target remains around twenty percent,

525
00:26:45,200 --> 00:26:47,560
Speaker 9: but were slightly overweight our target. We're probably a little

526
00:26:47,640 --> 00:26:53,240
Speaker 9: less than almost twenty three percent gold, and that speaks

527
00:26:53,280 --> 00:26:57,439
Speaker 9: to again being diversified. We see the gold market as

528
00:26:57,520 --> 00:26:59,719
Speaker 9: being a long term positive. Even with the run up

529
00:26:59,720 --> 00:27:01,560
Speaker 9: all the I would say there may be some profit

530
00:27:01,680 --> 00:27:04,600
Speaker 9: taking and consolidation. Investors may want to wait for a

531
00:27:04,640 --> 00:27:07,520
Speaker 9: better entry point. However, if you're a long term investor,

532
00:27:08,400 --> 00:27:11,160
Speaker 9: when you look at the landscape out there right now,

533
00:27:12,040 --> 00:27:14,960
Speaker 9: the FED being done and cutting on the interest rate cycle,

534
00:27:15,200 --> 00:27:18,480
Speaker 9: likely that's better for real returns and it reduces the

535
00:27:18,560 --> 00:27:23,520
Speaker 9: opportunity cost of investing in gold versus earnings yielding investments.

536
00:27:23,920 --> 00:27:26,480
Speaker 6: You look at geopolitical risk all over the world.

537
00:27:26,840 --> 00:27:30,600
Speaker 9: You look at the development of alternative currency payment systems

538
00:27:30,640 --> 00:27:33,479
Speaker 9: around the world to the US dollar. You look at

539
00:27:33,520 --> 00:27:37,679
Speaker 9: the US dollar declining after almost really multi decade highs,

540
00:27:38,880 --> 00:27:42,480
Speaker 9: and you look at a general fear or malaise with

541
00:27:42,600 --> 00:27:46,480
Speaker 9: respect to economic growth worldwide, and all these things add

542
00:27:46,600 --> 00:27:50,760
Speaker 9: up to a good environment for an investor to have

543
00:27:51,200 --> 00:27:55,200
Speaker 9: something in gold as a portfolio enhancer or a protector.

544
00:27:56,240 --> 00:27:59,800
Speaker 2: When you talked about the portfolio and the mix and

545
00:27:59,800 --> 00:28:02,840
Speaker 2: all that, is there still value in just ta bill

546
00:28:02,880 --> 00:28:05,200
Speaker 2: and chill and when does that narrative change.

547
00:28:07,560 --> 00:28:10,560
Speaker 9: Well, you know, for our cash and cash equivalents, that's

548
00:28:10,640 --> 00:28:15,119
Speaker 9: exactly what we're doing. There are opportunities with gyields coming

549
00:28:15,200 --> 00:28:16,920
Speaker 9: with rates coming down, there.

550
00:28:16,840 --> 00:28:18,520
Speaker 6: Are opportunities to incrus duration.

551
00:28:19,040 --> 00:28:22,840
Speaker 9: We're doing that very selectively in our portfolio, but for

552
00:28:23,040 --> 00:28:27,159
Speaker 9: our shorter term cash needs for liquidity and even as

553
00:28:27,280 --> 00:28:30,720
Speaker 9: part of our diversified approach, we're still taking that. You know,

554
00:28:30,880 --> 00:28:34,040
Speaker 9: now it's five percent versus five and a half, and

555
00:28:34,119 --> 00:28:35,880
Speaker 9: it may them down a little bit further, but you're

556
00:28:35,880 --> 00:28:38,320
Speaker 9: still talking, you know, risk free earnings.

557
00:28:38,720 --> 00:28:42,320
Speaker 6: I don't think the Fed's gonna cut that drastically, you.

558
00:28:42,360 --> 00:28:43,920
Speaker 9: Know, in the next year, year and a half or

559
00:28:44,000 --> 00:28:46,720
Speaker 9: so all the way down to you know, three percent,

560
00:28:46,840 --> 00:28:48,520
Speaker 9: three and a half percent the terminal rate.

561
00:28:48,600 --> 00:28:50,280
Speaker 6: I think they ought to maintain a sort of.

562
00:28:50,600 --> 00:28:54,160
Speaker 9: Slight tight bias personally, so you're still getting risk free

563
00:28:54,240 --> 00:28:56,920
Speaker 9: money for your cash, you know, at worse three and

564
00:28:56,920 --> 00:28:59,720
Speaker 9: a half percent, maybe in the fours, maybe closer to five.

565
00:29:00,560 --> 00:29:03,720
Speaker 9: And so as part of a diversified approach, it makes

566
00:29:03,760 --> 00:29:06,920
Speaker 9: sense for us if you're an if you're an investor,

567
00:29:07,040 --> 00:29:09,760
Speaker 9: that that's the only thing you're doing. I think you

568
00:29:09,880 --> 00:29:13,640
Speaker 9: may be selling yourself short unless you're very, very risk urse.

569
00:29:13,680 --> 00:29:16,920
Speaker 9: I think you can make more by being more broadly

570
00:29:17,000 --> 00:29:18,800
Speaker 9: diversified in a number of different areas.

571
00:29:19,560 --> 00:29:22,080
Speaker 4: What about when it comes to the reed side of

572
00:29:22,160 --> 00:29:24,680
Speaker 4: things in the equity market, when you have reads coming down,

573
00:29:24,720 --> 00:29:27,400
Speaker 4: what's your broader outlook for real estate and do you

574
00:29:27,560 --> 00:29:30,160
Speaker 4: own those corner of the market with those stocks.

575
00:29:31,600 --> 00:29:33,800
Speaker 9: Yeah, we do own some reads, and I probably should

576
00:29:33,840 --> 00:29:36,240
Speaker 9: have mentioned that is one of our asset classes that

577
00:29:36,320 --> 00:29:40,200
Speaker 9: we focus on. And you are right that with rates

578
00:29:40,280 --> 00:29:44,440
Speaker 9: coming down, reads generally are attractive in that environment, and

579
00:29:44,680 --> 00:29:48,120
Speaker 9: so I see that as being a good long term

580
00:29:48,320 --> 00:29:52,480
Speaker 9: area as well. And we're spread out among a number

581
00:29:52,520 --> 00:29:56,440
Speaker 9: of different industry subsectors within real estate, and so I

582
00:29:56,520 --> 00:29:58,600
Speaker 9: think the one thing you do have to be careful

583
00:29:58,640 --> 00:30:01,240
Speaker 9: of a little bit here in reachs would be the

584
00:30:01,360 --> 00:30:05,200
Speaker 9: balance sheets. Even though it appears that the markets may

585
00:30:05,240 --> 00:30:09,200
Speaker 9: have sidestepped the big credit crisis due to a major

586
00:30:09,320 --> 00:30:12,840
Speaker 9: refinancing of some of the debt at these higher yielding

587
00:30:14,520 --> 00:30:17,200
Speaker 9: debt deals, especially if rates are coming down, I think

588
00:30:17,280 --> 00:30:19,120
Speaker 9: you still need to focus on the balance sheet to

589
00:30:19,160 --> 00:30:23,280
Speaker 9: make sure your companies are not unduly exposed.

590
00:30:22,840 --> 00:30:26,680
Speaker 6: To credit risk. That you know, so asset quality is

591
00:30:26,720 --> 00:30:27,560
Speaker 6: something you always look at.

592
00:30:27,640 --> 00:30:31,800
Speaker 9: It reads anyway, So no nothing new here, but investors

593
00:30:31,840 --> 00:30:35,040
Speaker 9: should be careful in that part of the red sector.

594
00:30:35,360 --> 00:30:38,440
Speaker 2: Hey, Michael, super appreciate it. Thank you so much. Michael Cougino,

595
00:30:38,760 --> 00:30:42,680
Speaker 2: President portfolio Manager, Permanent Portfolio Family of Funds.

596
00:30:44,320 --> 00:30:48,160
Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

597
00:30:48,280 --> 00:30:51,200
Speaker 1: weekdays at ten am Eastern on Apple card Play and

598
00:30:51,320 --> 00:30:54,560
Speaker 1: Android Auto with the Bloomberg Business. You can also listen

599
00:30:54,720 --> 00:30:57,800
Speaker 1: live on Amazon Alexa from our flagship New York station

600
00:30:58,200 --> 00:31:00,920
Speaker 1: Just Say Alexa playing bloom eleven thirty.

601
00:31:02,520 --> 00:31:02,640
Speaker 4: One.

602
00:31:02,680 --> 00:31:06,320
Speaker 2: Other story that really caught my eye today was about

603
00:31:06,480 --> 00:31:11,640
Speaker 2: colleges and how basic other some higher education systems here

604
00:31:11,680 --> 00:31:14,680
Speaker 2: in the US. It is crazy, right, like Kinston so expensive,

605
00:31:14,840 --> 00:31:18,360
Speaker 2: they compete Harvard the whole thing. But apparently other universities

606
00:31:18,440 --> 00:31:22,320
Speaker 2: now like Northeastern, are trying to tap a Wall Street

607
00:31:22,360 --> 00:31:26,920
Speaker 2: playbook so they can rival Ivy's on admissions. This obviously

608
00:31:26,960 --> 00:31:28,760
Speaker 2: caught everybody's eye. It's one of the top reading stories

609
00:31:28,800 --> 00:31:31,960
Speaker 2: on the Bloomberg terminal. Francesca Maglione is personal finance and

610
00:31:32,040 --> 00:31:34,200
Speaker 2: higher education reporter and she joins us now in the

611
00:31:34,240 --> 00:31:36,920
Speaker 2: Bloomberg Interactive broker's studio. Okay, can you just walk us

612
00:31:36,920 --> 00:31:37,640
Speaker 2: through the premise here?

613
00:31:38,280 --> 00:31:41,959
Speaker 10: Yeah. So, Northeastern University has been known for years as

614
00:31:41,960 --> 00:31:46,280
Speaker 10: a commuter school mostly attended by local students, and since

615
00:31:46,360 --> 00:31:50,000
Speaker 10: twenty eleven they've kind of been expanding their brand. They

616
00:31:50,520 --> 00:31:54,880
Speaker 10: now have fourteen campuses across the world, with three campuses abroad.

617
00:31:55,480 --> 00:31:58,160
Speaker 10: What we thought was interesting is that since twenty nineteen

618
00:31:58,240 --> 00:32:02,480
Speaker 10: they've been buying up other strugglings schools, kind of tapping

619
00:32:02,520 --> 00:32:05,040
Speaker 10: in that private equity playbook and m and a. Yeah,

620
00:32:05,120 --> 00:32:07,320
Speaker 10: like they've been merging with They've merged with three different

621
00:32:07,320 --> 00:32:10,320
Speaker 10: schools so far and kind of embedded the Northeastern brand

622
00:32:10,400 --> 00:32:12,800
Speaker 10: on these schools. And now can offer to students like, hey,

623
00:32:12,880 --> 00:32:15,320
Speaker 10: you can study for a semester in California, you can

624
00:32:15,360 --> 00:32:17,520
Speaker 10: do a semester in New York. And this is very

625
00:32:17,560 --> 00:32:20,960
Speaker 10: different from those schools like Princeton and Harvard, which just

626
00:32:21,040 --> 00:32:24,240
Speaker 10: want to stay small and delete. They want to expand

627
00:32:24,280 --> 00:32:25,560
Speaker 10: their brand as much as they can.

628
00:32:25,520 --> 00:32:27,400
Speaker 4: Because there's a lot of schools, especially in the South

629
00:32:27,400 --> 00:32:29,120
Speaker 4: where I'm from, where you had a lot of magnet

630
00:32:29,200 --> 00:32:31,560
Speaker 4: schools and then satellite schools, whether it was like the

631
00:32:31,640 --> 00:32:33,640
Speaker 4: University of Texas or Texas A and M, so you'd

632
00:32:33,720 --> 00:32:36,400
Speaker 4: have not just the main campuses, say in Austin, Texas,

633
00:32:36,520 --> 00:32:39,040
Speaker 4: you had ones in SA Dallas and outside of that.

634
00:32:39,160 --> 00:32:41,760
Speaker 4: So I'm wondering, is this is there a particular playbook

635
00:32:41,760 --> 00:32:43,040
Speaker 4: when it comes to kind of like them and a

636
00:32:43,160 --> 00:32:45,120
Speaker 4: type of feel it comes to something like this, or

637
00:32:45,240 --> 00:32:47,240
Speaker 4: is there different not apples and apples.

638
00:32:47,320 --> 00:32:50,120
Speaker 10: I guess yeah, I guess. What's interesting with the Northeastern

639
00:32:50,240 --> 00:32:52,440
Speaker 10: is that Higher rid is going through a very hard time.

640
00:32:52,520 --> 00:32:55,400
Speaker 10: There's a lot of smaller schools that are closing all

641
00:32:55,480 --> 00:32:58,760
Speaker 10: over the US, and so Northeastern is growing at a

642
00:32:58,800 --> 00:33:01,680
Speaker 10: time when all these other college are shrinking. Colleges are

643
00:33:01,800 --> 00:33:04,880
Speaker 10: competing for students. The number of students across the US

644
00:33:05,000 --> 00:33:07,160
Speaker 10: is going to drop by ten percent, the number of

645
00:33:07,200 --> 00:33:07,840
Speaker 10: students going.

646
00:33:07,760 --> 00:33:10,960
Speaker 4: To college, and so why what's the driver there?

647
00:33:11,120 --> 00:33:15,840
Speaker 10: It's just a demographic cliff and the costs and it's

648
00:33:16,720 --> 00:33:21,000
Speaker 10: extremely expensive as well. COVID was really bad for the

649
00:33:21,240 --> 00:33:24,160
Speaker 10: college enrollment numbers as well. And so Northeastern is kind

650
00:33:24,160 --> 00:33:26,680
Speaker 10: of growing at a time when all these other schools

651
00:33:26,680 --> 00:33:31,040
Speaker 10: are shrinking. And when looking for schools, they want valuable

652
00:33:31,120 --> 00:33:33,720
Speaker 10: real estate. The latest acquisition that they have is in

653
00:33:33,920 --> 00:33:37,200
Speaker 10: New York. Now they have three buildings in Manhattan.

654
00:33:37,640 --> 00:33:40,840
Speaker 2: Did they buy Marymount or was this part of Yes.

655
00:33:40,800 --> 00:33:43,120
Speaker 10: They don't call it buying because.

656
00:33:43,600 --> 00:33:44,480
Speaker 2: Still has its own brand.

657
00:33:44,760 --> 00:33:48,920
Speaker 10: They just like swallow their liabilities and their assets. There's

658
00:33:48,960 --> 00:33:51,720
Speaker 10: no exchange of money that changes hands.

659
00:33:52,920 --> 00:33:56,520
Speaker 2: Is it working? Like, yeah, is this playbook actually helping Northeastern? Yeah,

660
00:33:56,560 --> 00:33:56,960
Speaker 2: it's working.

661
00:33:57,040 --> 00:34:00,600
Speaker 10: Northeastern last year had almost one hundred thousand students apply

662
00:34:00,680 --> 00:34:03,959
Speaker 10: to their university. They've seen their enrollment increase by fifteen

663
00:34:03,960 --> 00:34:07,440
Speaker 10: percent since twenty nineteen, and they've gone from being just

664
00:34:07,560 --> 00:34:11,719
Speaker 10: a local, little known brand to being known worldwide.

665
00:34:12,520 --> 00:34:12,799
Speaker 7: Does it.

666
00:34:14,600 --> 00:34:16,680
Speaker 2: Does it help? But part of the college thing is

667
00:34:16,719 --> 00:34:18,680
Speaker 2: like the experience, right, Like you go there and you

668
00:34:18,880 --> 00:34:21,920
Speaker 2: live there, like maybe you take a semester abroad or something,

669
00:34:22,000 --> 00:34:24,279
Speaker 2: but like you stay there and it feels a little

670
00:34:24,360 --> 00:34:26,279
Speaker 2: weird and disjointed, and then all of a sudden be

671
00:34:26,320 --> 00:34:28,120
Speaker 2: like you're here, and then you're there, and then you're there.

672
00:34:28,560 --> 00:34:30,680
Speaker 10: Yeah, for sure. That's one of the things that Northeastern

673
00:34:30,719 --> 00:34:32,799
Speaker 10: will say is changing within higher ed and that's why

674
00:34:32,840 --> 00:34:35,520
Speaker 10: they've been successful in this moment. They think that students

675
00:34:35,600 --> 00:34:38,440
Speaker 10: no longer or some students no longer want to, you know,

676
00:34:38,560 --> 00:34:40,840
Speaker 10: spend four years in one place with a small community,

677
00:34:41,160 --> 00:34:43,319
Speaker 10: and they're looking to get new experiences and be more

678
00:34:43,360 --> 00:34:45,640
Speaker 10: practical in terms of their four years. How can this

679
00:34:45,719 --> 00:34:48,840
Speaker 10: translate into career after college and things like that. So

680
00:34:48,960 --> 00:34:50,720
Speaker 10: that's another way that they're different from other colleges.

681
00:34:50,840 --> 00:34:53,719
Speaker 4: Are there other potential universities or colleges that are eyeing

682
00:34:54,000 --> 00:34:56,400
Speaker 4: this type of model and they may try to do

683
00:34:56,719 --> 00:34:58,080
Speaker 4: and replicate something similar.

684
00:34:58,800 --> 00:35:02,399
Speaker 10: Yeah, for sure. Northeastern told us that they've heard from

685
00:35:02,680 --> 00:35:05,480
Speaker 10: almost fifty schools that have reached out kind of interesting

686
00:35:05,920 --> 00:35:08,880
Speaker 10: and either merging with them or learning about their business model.

687
00:35:08,960 --> 00:35:12,360
Speaker 10: We saw that Vanderbilt has now a campus in Florida.

688
00:35:12,480 --> 00:35:14,399
Speaker 10: That's kind of a school that's trying to do something

689
00:35:14,440 --> 00:35:16,680
Speaker 10: a little similar, not at the scale that Northeastern is

690
00:35:16,719 --> 00:35:19,440
Speaker 10: doing it, but there's a lot of schools watching what

691
00:35:19,480 --> 00:35:20,160
Speaker 10: they're doing right now.

692
00:35:20,280 --> 00:35:23,399
Speaker 2: Yeah, so is what they're doing also though different from

693
00:35:23,400 --> 00:35:26,000
Speaker 2: that Marymount thing, Like I can still go to Marymount here,

694
00:35:26,200 --> 00:35:28,520
Speaker 2: say in New York City versus Northeastern, and then I

695
00:35:28,600 --> 00:35:30,080
Speaker 2: go spend a semester in California.

696
00:35:31,120 --> 00:35:34,560
Speaker 10: Yes, so the Merrymount is part of their whole plan.

697
00:35:35,040 --> 00:35:37,080
Speaker 2: Okay, so that that is part Right now, they're.

698
00:35:36,880 --> 00:35:41,080
Speaker 10: Still Marymount because the merger was just announced, but eventually

699
00:35:41,360 --> 00:35:45,080
Speaker 10: it'll be Marymount at Northeastern or whatever brand they decide

700
00:35:45,080 --> 00:35:45,400
Speaker 10: to go with.

701
00:35:45,600 --> 00:35:47,200
Speaker 2: Ye, so then I can go to Northeastern and then

702
00:35:47,239 --> 00:35:48,480
Speaker 2: be like I'm gonna spend a year in New York

703
00:35:48,520 --> 00:35:51,600
Speaker 2: going in to Marymount. Yes, okay, yeah, yeah, that's just

704
00:35:51,680 --> 00:35:54,640
Speaker 2: so interesting. It's just such a different college like experience.

705
00:35:55,960 --> 00:35:57,480
Speaker 2: I would think that you go to college, you learn

706
00:35:57,520 --> 00:35:59,600
Speaker 2: how to like be by yourself, do laundry by yourself,

707
00:36:00,080 --> 00:36:02,799
Speaker 2: debt by yourself, to brink beer by yourself, and then

708
00:36:02,880 --> 00:36:05,800
Speaker 2: like that's it, not like jet setting off to different locations,

709
00:36:06,000 --> 00:36:08,640
Speaker 2: you know, Frantessca, thanks that it was a really great piece,

710
00:36:08,680 --> 00:36:12,320
Speaker 2: really appreciated. Francesca Maglione, personal finance and higher education reporter

711
00:36:12,440 --> 00:36:13,080
Speaker 2: at Joining Us.

712
00:36:13,360 --> 00:36:17,839
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713
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714
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715
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