1 00:00:13,360 --> 00:00:17,000 Speaker 1: Hello, and welcome to What Goes Up a weekly markets podcast. 2 00:00:17,280 --> 00:00:19,400 Speaker 1: My name is Mike Creagan, and I'm a senior editor 3 00:00:19,480 --> 00:00:22,680 Speaker 1: at Bloomberg and I'm val Donna, hi across asset reporter 4 00:00:22,720 --> 00:00:25,840 Speaker 1: at Bloomberg. And this week on the show, while the 5 00:00:25,960 --> 00:00:30,000 Speaker 1: SMP fire just kept a seventh straight monthly gain, it 6 00:00:30,120 --> 00:00:33,200 Speaker 1: happened in the same month that Federal Reserve officials made 7 00:00:33,200 --> 00:00:35,440 Speaker 1: it pretty clear that they're ready to start taking their 8 00:00:35,479 --> 00:00:37,519 Speaker 1: foot off the gas pedal. When it comes to the 9 00:00:37,640 --> 00:00:41,520 Speaker 1: stimulative monetary policy that's been so important for this rally, 10 00:00:42,680 --> 00:00:44,440 Speaker 1: how much of the rally actually has been due to 11 00:00:44,479 --> 00:00:47,239 Speaker 1: that stimilios and how much was due to the ebulent 12 00:00:47,360 --> 00:00:50,760 Speaker 1: investor psychology that accompanied it, and how should we think 13 00:00:50,760 --> 00:00:53,720 Speaker 1: about what happens now. We'll get into it with a 14 00:00:53,800 --> 00:00:56,680 Speaker 1: chief investment officer who actually helped start her own new 15 00:00:56,720 --> 00:01:00,000 Speaker 1: firm just about two years ago. But first, vill Dona, 16 00:01:00,640 --> 00:01:04,400 Speaker 1: some trivia I just learned about you and this chief 17 00:01:04,440 --> 00:01:06,960 Speaker 1: investment officer. Neither one of you has a middle name. 18 00:01:08,080 --> 00:01:11,200 Speaker 1: That's true, right, that's true, that's right. Yeah. Her name 19 00:01:11,240 --> 00:01:15,120 Speaker 1: is Kim Forrest. She's the chief investment officer at Boca 20 00:01:15,240 --> 00:01:18,240 Speaker 1: Capital Management. Kim, Welcome, to the show. Thank you, thank 21 00:01:18,240 --> 00:01:21,759 Speaker 1: you for having me. Yeah, Kim, let's just start off 22 00:01:22,080 --> 00:01:24,480 Speaker 1: before we get to the actual nuts and bolts of 23 00:01:24,840 --> 00:01:26,520 Speaker 1: your views on the market. Tell us a little bit 24 00:01:26,600 --> 00:01:28,399 Speaker 1: bit about this firm. I know you just started it 25 00:01:28,440 --> 00:01:32,720 Speaker 1: in what two thousand and nineteen. UM You're based in Pittsburgh, right, 26 00:01:32,760 --> 00:01:34,399 Speaker 1: Give us a little bit about how it all came 27 00:01:34,400 --> 00:01:37,320 Speaker 1: about and sort of what your strategies are. Sure, So, 28 00:01:37,600 --> 00:01:42,319 Speaker 1: I have been a uh PM for probably about I 29 00:01:42,360 --> 00:01:45,920 Speaker 1: don't know, sixteen years, and before that, I started this 30 00:01:46,880 --> 00:01:51,520 Speaker 1: career as a cell side analyst covering software stocks. Before that, 31 00:01:51,640 --> 00:01:55,360 Speaker 1: I was a software engineer for thirteen years. And I 32 00:01:55,520 --> 00:01:58,120 Speaker 1: found this world because I went to an MBA program 33 00:01:58,160 --> 00:02:03,680 Speaker 1: to become a salesman essentially of UM software and services. 34 00:02:03,760 --> 00:02:06,360 Speaker 1: And I thought I needed to get the vocabulary of business, 35 00:02:06,400 --> 00:02:08,120 Speaker 1: so I got an m b A and instead I 36 00:02:08,240 --> 00:02:11,480 Speaker 1: changed careers. It's so crazy because I found finance and 37 00:02:11,520 --> 00:02:14,600 Speaker 1: I love it. So so that's how I got here. 38 00:02:14,919 --> 00:02:17,960 Speaker 1: And I guess I'm entrepreneurial by nature because I've always 39 00:02:18,040 --> 00:02:20,640 Speaker 1: kind of been itching to do my own thing, and 40 00:02:20,680 --> 00:02:25,160 Speaker 1: in twenty nine I finally took the leap. So I'm 41 00:02:25,240 --> 00:02:29,400 Speaker 1: a equity analyst, and we have some strategies here that 42 00:02:29,480 --> 00:02:33,240 Speaker 1: are based off of the core of what I believe, 43 00:02:33,360 --> 00:02:36,600 Speaker 1: and that's growth at a reasonable price. I believe that 44 00:02:36,680 --> 00:02:40,200 Speaker 1: the markets always reward growth, but UM, you should be 45 00:02:40,240 --> 00:02:42,720 Speaker 1: prudent about putting your money to work. So that's kind 46 00:02:42,720 --> 00:02:45,240 Speaker 1: of um what we do, and we do it well. 47 00:02:46,480 --> 00:02:48,359 Speaker 1: And Kim, you and I have been talking for a 48 00:02:48,440 --> 00:02:50,799 Speaker 1: couple of years now. One of the things we very 49 00:02:50,840 --> 00:02:54,600 Speaker 1: frequently talked about is your pets and my pet So 50 00:02:54,720 --> 00:02:56,760 Speaker 1: maybe you can touch on that a bit. But I 51 00:02:56,760 --> 00:02:59,920 Speaker 1: also want to ask you about UH tech. I know 52 00:03:00,000 --> 00:03:02,160 Speaker 1: you and I have talked about tech a million times. 53 00:03:02,360 --> 00:03:04,560 Speaker 1: I think you like certain chip companies. I think you 54 00:03:04,680 --> 00:03:08,240 Speaker 1: like the five G space. Maybe one of your main 55 00:03:08,240 --> 00:03:10,960 Speaker 1: funds is up forming them this year. So maybe you 56 00:03:11,000 --> 00:03:15,000 Speaker 1: can tell us a bit more about your your strategy. Sure, 57 00:03:15,080 --> 00:03:18,080 Speaker 1: and we'll leave pets to UH in a couple of minutes. 58 00:03:18,160 --> 00:03:21,920 Speaker 1: So so right, Probably because of my first career as 59 00:03:21,919 --> 00:03:25,560 Speaker 1: a software engineer, I see things through the lens of 60 00:03:25,600 --> 00:03:30,079 Speaker 1: trying to find really good companies that use technology really well. 61 00:03:30,400 --> 00:03:34,320 Speaker 1: What I discovered, um, when I was on the software 62 00:03:34,360 --> 00:03:38,800 Speaker 1: gig was that certain companies would kind of do well, 63 00:03:38,880 --> 00:03:41,280 Speaker 1: not so great things with technology that's been a whole 64 00:03:41,320 --> 00:03:45,040 Speaker 1: lot of money. It was cool, it was cutting edge, 65 00:03:45,080 --> 00:03:47,920 Speaker 1: but it didn't do much for them as a company. 66 00:03:48,000 --> 00:03:50,600 Speaker 1: So that's the kind of software I try to stay 67 00:03:50,600 --> 00:03:53,640 Speaker 1: away from, right is. You know, just because it's cool 68 00:03:53,720 --> 00:03:57,760 Speaker 1: doesn't mean it's good. So I'm looking for productivity. So 69 00:03:57,800 --> 00:04:01,920 Speaker 1: that's the thread again, growth a reasonable price, but companies 70 00:04:01,960 --> 00:04:05,360 Speaker 1: that can really deploy technology well. And I also like 71 00:04:05,440 --> 00:04:09,600 Speaker 1: companies that make technology. Um. Right now, I've figured it 72 00:04:09,600 --> 00:04:12,840 Speaker 1: out that at the very core of any kind of 73 00:04:12,880 --> 00:04:16,080 Speaker 1: software is hardware that runs on a chip. So I've 74 00:04:16,120 --> 00:04:20,839 Speaker 1: been really investing in chips to the uh, you know, 75 00:04:20,920 --> 00:04:22,840 Speaker 1: I haven't really found a whole lot of software companies 76 00:04:22,839 --> 00:04:25,320 Speaker 1: that I like at this point, but chips look cheap 77 00:04:25,920 --> 00:04:30,479 Speaker 1: and um. Even though we started right running this portfolio 78 00:04:30,640 --> 00:04:34,479 Speaker 1: right at the beginning of covid UM, chips have really 79 00:04:34,520 --> 00:04:38,839 Speaker 1: performed well and they're constrained. But here's the thing. We're 80 00:04:38,839 --> 00:04:40,960 Speaker 1: going to need more next year and the year after 81 00:04:41,120 --> 00:04:45,280 Speaker 1: and the year after, and I think we're under um 82 00:04:45,440 --> 00:04:48,120 Speaker 1: estimating how many chips we're going to need because of 83 00:04:48,160 --> 00:04:52,040 Speaker 1: five G bringing us Internet of Things to be finally 84 00:04:52,200 --> 00:04:57,440 Speaker 1: a thing in the in the corporate world, and I 85 00:04:57,480 --> 00:05:01,000 Speaker 1: don't bring up pets just to bring up pet Mike. 86 00:05:01,440 --> 00:05:04,280 Speaker 1: I don't know if you've read Kim's annual reports, but 87 00:05:04,360 --> 00:05:07,680 Speaker 1: she she has included I think you once included a 88 00:05:07,680 --> 00:05:12,120 Speaker 1: picture of your chickens. Was it this past year? I 89 00:05:12,160 --> 00:05:16,599 Speaker 1: think so. Yes. I have four chickens and everybody works 90 00:05:16,600 --> 00:05:20,160 Speaker 1: in this house. They lay eggs. They are all egg producing. Um. 91 00:05:20,160 --> 00:05:22,080 Speaker 1: I haven't had to buy eggs from the store in 92 00:05:22,120 --> 00:05:24,400 Speaker 1: a very long time, and I'm glad because my eggs 93 00:05:24,400 --> 00:05:30,120 Speaker 1: are golden and tasty and not like those sad, mass 94 00:05:30,160 --> 00:05:32,559 Speaker 1: produced yellow eggs. I saw a picture of your chickens. 95 00:05:32,560 --> 00:05:36,279 Speaker 1: I'm very jealous. I'm an aspiring backyard chicken farmer myself, 96 00:05:36,320 --> 00:05:40,320 Speaker 1: but uh, my neighbors are not do not share my aspirations. 97 00:05:40,360 --> 00:05:43,559 Speaker 1: So I'm not sure if we could uh make that happen. 98 00:05:43,640 --> 00:05:47,920 Speaker 1: Maybe in retirement, I'll get get finally get those chickens. Um, Chem. 99 00:05:48,000 --> 00:05:51,039 Speaker 1: I wanted to unpack a little bit about your approach 100 00:05:51,160 --> 00:05:56,240 Speaker 1: to uh looking at chip makers, um and I have 101 00:05:56,279 --> 00:05:58,479 Speaker 1: a lot of questions about this, and as just my style, 102 00:05:58,520 --> 00:06:00,760 Speaker 1: I might pack them all into like a thirty part 103 00:06:00,839 --> 00:06:03,000 Speaker 1: question for you, so so stand by for that. But 104 00:06:03,000 --> 00:06:06,760 Speaker 1: but but I feel like a lot of investors get 105 00:06:06,800 --> 00:06:11,360 Speaker 1: intimidated with the semiconductor space because there's so much going on, 106 00:06:11,440 --> 00:06:15,320 Speaker 1: there's so much nuance, and also there's so much sort 107 00:06:15,360 --> 00:06:18,120 Speaker 1: of there's this like boom and bust cycle of of 108 00:06:18,120 --> 00:06:22,240 Speaker 1: supplying demand. Um. Obviously now we're in this still in 109 00:06:22,240 --> 00:06:25,800 Speaker 1: this kind of mismatched supplying to demand environment where everyone 110 00:06:25,839 --> 00:06:29,000 Speaker 1: needs chips. Uh, they're not making enough, you know, for 111 00:06:29,080 --> 00:06:33,000 Speaker 1: carmakers and other applications. But let's start first with that 112 00:06:33,160 --> 00:06:36,640 Speaker 1: idea of the sort of you know, the the cycle 113 00:06:36,720 --> 00:06:39,400 Speaker 1: for chip makers, which it doesn't seem to always be 114 00:06:39,880 --> 00:06:42,799 Speaker 1: correspond with the regular economic cycle. It kind of has 115 00:06:42,800 --> 00:06:45,560 Speaker 1: its mind of its own um and the share prices 116 00:06:45,600 --> 00:06:48,360 Speaker 1: kind of through their own thing as well. So is it, 117 00:06:48,480 --> 00:06:51,840 Speaker 1: you know, do you try to time that cycle uh 118 00:06:52,200 --> 00:06:54,000 Speaker 1: to sort of get in and out of these names 119 00:06:54,320 --> 00:06:56,160 Speaker 1: along with it, or is that is is that as 120 00:06:56,200 --> 00:06:59,760 Speaker 1: foolish as trying to time the regular market as a whole. 121 00:07:01,520 --> 00:07:05,480 Speaker 1: That is an excellent question with multi parts. So here 122 00:07:05,520 --> 00:07:07,479 Speaker 1: I'm going to take a shot at it. First, to 123 00:07:07,560 --> 00:07:11,440 Speaker 1: the timing aspect um, I think we're always surprised, both 124 00:07:11,440 --> 00:07:14,920 Speaker 1: to the upside and downside. We're rational people. We look 125 00:07:14,960 --> 00:07:16,880 Speaker 1: at things and we say, X, Y and Z are 126 00:07:16,880 --> 00:07:19,960 Speaker 1: going to happen, and then ABC happens. Right, So I 127 00:07:20,080 --> 00:07:24,960 Speaker 1: try to take most of the timing away from any 128 00:07:25,040 --> 00:07:28,320 Speaker 1: kind of thing other than today's price. Like I have 129 00:07:28,400 --> 00:07:31,280 Speaker 1: a little band of maybe sixty days where I look 130 00:07:31,320 --> 00:07:34,200 Speaker 1: at something and go, that's gonna come back down. I 131 00:07:34,240 --> 00:07:36,400 Speaker 1: can wait for that, right, So that's my at a 132 00:07:36,480 --> 00:07:41,760 Speaker 1: reasonable price. Um. That being said, in the world of chips, 133 00:07:42,080 --> 00:07:47,600 Speaker 1: there are definite pockets and you can even though you're 134 00:07:47,640 --> 00:07:52,040 Speaker 1: not a technologist, you can figure these things out. For example, 135 00:07:52,360 --> 00:07:56,880 Speaker 1: there's one um it's called Micron. It's one of the 136 00:07:56,960 --> 00:08:00,800 Speaker 1: names we own, the ticker symbols M you. And one 137 00:08:00,840 --> 00:08:03,200 Speaker 1: of the things that they make is this stuff called 138 00:08:03,400 --> 00:08:06,880 Speaker 1: nand N A N D And that is a way 139 00:08:06,960 --> 00:08:13,840 Speaker 1: it's it is a chip, but it is really um storage. Right. 140 00:08:14,080 --> 00:08:16,680 Speaker 1: It doesn't have to have electricity. You can put stuff 141 00:08:16,680 --> 00:08:18,920 Speaker 1: on it. It's like those little cards that used to 142 00:08:18,960 --> 00:08:22,000 Speaker 1: have for your camera or your phone. Right that that's 143 00:08:22,040 --> 00:08:26,520 Speaker 1: that is what we're talking about. So that definitely has 144 00:08:26,640 --> 00:08:30,040 Speaker 1: boom and bust cycles. And it's only because only eight 145 00:08:30,160 --> 00:08:34,280 Speaker 1: companies make it. So when somebody brings a new line 146 00:08:34,720 --> 00:08:39,200 Speaker 1: or a new fab online that kind of destroys the 147 00:08:39,240 --> 00:08:44,360 Speaker 1: whole supply demand um curve. Right, So then the chips 148 00:08:44,400 --> 00:08:49,120 Speaker 1: get cheap because you know, these are unbelievably expensive fabricating plants. 149 00:08:49,160 --> 00:08:51,200 Speaker 1: They have to be running at full tilt the whole way, 150 00:08:51,280 --> 00:08:54,400 Speaker 1: or nobody makes any money. So they just keep shoving 151 00:08:54,440 --> 00:08:56,959 Speaker 1: them out the door. And it's kind of commodity. Now 152 00:08:56,960 --> 00:09:00,120 Speaker 1: a couple of things. First, not all nanda is at 153 00:09:00,200 --> 00:09:04,480 Speaker 1: it equals some are is getting faster, better, stronger than others. Um, 154 00:09:04,559 --> 00:09:07,520 Speaker 1: So that is kind of adding some discrimination to your 155 00:09:07,559 --> 00:09:10,800 Speaker 1: ability to pick a better company from. You know, it's 156 00:09:10,840 --> 00:09:14,679 Speaker 1: no longer commodity. But the second thing is we are 157 00:09:14,760 --> 00:09:20,040 Speaker 1: so quickly moving away from older storage devices like spinning disks, 158 00:09:20,080 --> 00:09:23,280 Speaker 1: and certainly we don't put anything on metal tape anymore. 159 00:09:23,280 --> 00:09:26,000 Speaker 1: Remember those big tape rooms where okay, yeah, that's gone, 160 00:09:26,080 --> 00:09:30,199 Speaker 1: that's not a thing anymore. So because of that, I 161 00:09:30,240 --> 00:09:32,560 Speaker 1: think we're gonna kind of flatten out and we're gonna 162 00:09:32,559 --> 00:09:37,640 Speaker 1: have boom let cycles, not boom and bust cycles. Right So, 163 00:09:38,040 --> 00:09:41,400 Speaker 1: because I do think we're just we have so much 164 00:09:41,480 --> 00:09:44,000 Speaker 1: data that it has to go somewhere, and it's going 165 00:09:44,040 --> 00:09:48,800 Speaker 1: on these nean devices which are now going into um uh, 166 00:09:48,840 --> 00:09:52,760 Speaker 1: you know, enterprise storage areas. So that's thing. One thing 167 00:09:52,880 --> 00:09:58,800 Speaker 1: too is you can discriminate across the makers of chips 168 00:09:59,320 --> 00:10:03,240 Speaker 1: to high tech, which is like you're in video, right, 169 00:10:03,280 --> 00:10:07,199 Speaker 1: because they're doing very very fast chips for graphics cards 170 00:10:07,240 --> 00:10:10,200 Speaker 1: for gamers, but all serve for bitcoin mining and I 171 00:10:10,240 --> 00:10:14,400 Speaker 1: say that with a smile, bitcoin mining and AI, so 172 00:10:14,800 --> 00:10:17,480 Speaker 1: you know you're gonna pay a premium for those chips, 173 00:10:18,040 --> 00:10:21,560 Speaker 1: so that it is probably not gonna go in a 174 00:10:21,600 --> 00:10:26,320 Speaker 1: boom and bust cycle, unless well, they maybe make cyber 175 00:10:27,240 --> 00:10:33,079 Speaker 1: uh uh currency you know illegal that might that might 176 00:10:33,200 --> 00:10:37,679 Speaker 1: imbeed that, but um that's probably not your biggest worry anyhow, 177 00:10:37,800 --> 00:10:41,520 Speaker 1: So right, so there are things that you can kind 178 00:10:41,559 --> 00:10:45,000 Speaker 1: of try to avoid, but then again, I don't know. 179 00:10:45,120 --> 00:10:48,000 Speaker 1: Sometimes things happen and the demand goes right back up, 180 00:10:48,800 --> 00:10:51,560 Speaker 1: so you know, I like to have always some exposure. 181 00:10:52,040 --> 00:10:56,280 Speaker 1: So that's kind of the Miss America answer, right, something 182 00:10:56,360 --> 00:11:07,600 Speaker 1: for everybody. Kim. Can I ask you how you're thinking 183 00:11:07,679 --> 00:11:11,679 Speaker 1: about supplying supply chain issues, because I've actually been reading 184 00:11:11,679 --> 00:11:15,080 Speaker 1: some reports this week, maybe over the last two weeks 185 00:11:15,120 --> 00:11:17,360 Speaker 1: or so, where more and more people are thinking that 186 00:11:17,440 --> 00:11:20,680 Speaker 1: some of the supply chain problems are going to be 187 00:11:21,160 --> 00:11:24,600 Speaker 1: dragging out for longer and longer potentially, And I know 188 00:11:24,679 --> 00:11:26,679 Speaker 1: chips is a big, big part of this, But how 189 00:11:26,679 --> 00:11:30,120 Speaker 1: are you thinking about the big picture. Sure, well, I'm 190 00:11:30,160 --> 00:11:33,440 Speaker 1: going further and further out the timeline because I think 191 00:11:33,440 --> 00:11:37,000 Speaker 1: there are going to be UM supply disruptions and a 192 00:11:37,000 --> 00:11:39,400 Speaker 1: lot of it is because a lot of the actual 193 00:11:40,000 --> 00:11:43,560 Speaker 1: especially CPU chips are being made in one central location, 194 00:11:43,600 --> 00:11:49,800 Speaker 1: and that is Taiwan. And I strongly believe that UM, 195 00:11:50,040 --> 00:11:52,960 Speaker 1: especially Taiwan Semiconductor, is just going to have to move 196 00:11:53,040 --> 00:11:58,200 Speaker 1: some of its production around the world to reduce its risk, 197 00:11:58,800 --> 00:12:02,200 Speaker 1: just for no other reason. And I believe other chip 198 00:12:02,280 --> 00:12:05,440 Speaker 1: makers are going to kind of have to move around 199 00:12:05,480 --> 00:12:08,560 Speaker 1: the world. So why is this something that we're discussing, 200 00:12:08,600 --> 00:12:11,320 Speaker 1: Because I think it gives you opportunity. You can go 201 00:12:11,360 --> 00:12:14,400 Speaker 1: a little further away from actually owning chips to maybe 202 00:12:14,400 --> 00:12:18,440 Speaker 1: owning things like UM we own software that helps you 203 00:12:18,520 --> 00:12:22,440 Speaker 1: to design chips, so you can do that. You could 204 00:12:22,600 --> 00:12:25,960 Speaker 1: invest in the companies that make the machines that make 205 00:12:26,000 --> 00:12:29,720 Speaker 1: the chips right, And I encourage people to think about 206 00:12:29,760 --> 00:12:32,439 Speaker 1: that because I think demand is going up, but so 207 00:12:32,640 --> 00:12:36,560 Speaker 1: is UM. You know, risk remediation. So they're gonna have 208 00:12:36,600 --> 00:12:39,720 Speaker 1: to build these fabs away from off of Taiwan into 209 00:12:39,760 --> 00:12:42,240 Speaker 1: other areas of the world, and that will drive a 210 00:12:42,280 --> 00:12:44,640 Speaker 1: whole lot of spending that you can take advantage of 211 00:12:44,679 --> 00:12:48,440 Speaker 1: because there's relatively few makers of the things that make chips. 212 00:12:48,760 --> 00:12:53,000 Speaker 1: With all the sort of nationalism sweeping the world and 213 00:12:53,200 --> 00:12:55,640 Speaker 1: even the supply chain issues we've seen, it seems like 214 00:12:55,760 --> 00:12:58,679 Speaker 1: that is something yet that you must be preparing for 215 00:12:58,720 --> 00:13:02,840 Speaker 1: in the futures. This this kind of you know, big 216 00:13:03,240 --> 00:13:07,560 Speaker 1: electronic manufacturers bringing chips production in house, and and you 217 00:13:07,600 --> 00:13:11,720 Speaker 1: know people trying to produce their own fabrication plants, make 218 00:13:11,720 --> 00:13:14,120 Speaker 1: their own fabrication plants, like even in the US. That's 219 00:13:14,760 --> 00:13:18,160 Speaker 1: that Is that a real? Is that really where the 220 00:13:18,200 --> 00:13:20,680 Speaker 1: industry is going, do you think? Or is it just 221 00:13:20,760 --> 00:13:23,240 Speaker 1: kind of being hype that way? I think it's being 222 00:13:23,320 --> 00:13:26,720 Speaker 1: hyped that way. But I could see centers around the world, 223 00:13:27,240 --> 00:13:32,000 Speaker 1: like in probably tax friendly and resource friendly areas, And 224 00:13:33,320 --> 00:13:35,680 Speaker 1: Intel's chips are still made in the US, so I 225 00:13:35,679 --> 00:13:38,160 Speaker 1: think that is always going to stay that way, right, 226 00:13:38,480 --> 00:13:40,960 Speaker 1: but I can see it maybe moving over to I 227 00:13:41,000 --> 00:13:44,079 Speaker 1: don't know, Ireland, because you know, they've been a friend 228 00:13:44,080 --> 00:13:47,199 Speaker 1: of pharma, So why not be a friend of tech. 229 00:13:47,520 --> 00:13:50,600 Speaker 1: They're they're just really good about allowing people to come 230 00:13:50,640 --> 00:13:53,000 Speaker 1: in and they know how to handle that. So so 231 00:13:53,040 --> 00:13:56,120 Speaker 1: I think that there could be these pockets around the 232 00:13:56,160 --> 00:14:00,800 Speaker 1: world of technology. And you know, it's not perfect where 233 00:14:00,880 --> 00:14:05,559 Speaker 1: you know, Belgium has its own you know, chip making plant, 234 00:14:05,800 --> 00:14:08,280 Speaker 1: you know, and so does Luxembourg. I mean, I think 235 00:14:08,320 --> 00:14:10,800 Speaker 1: that's getting kind of crazy, you know, too too small. 236 00:14:11,160 --> 00:14:14,920 Speaker 1: But I do think having all of the uh computing 237 00:14:15,160 --> 00:14:18,560 Speaker 1: of the world being made in one area is not 238 00:14:18,679 --> 00:14:22,000 Speaker 1: the smartest thing. And let's take geopolitical out of it. 239 00:14:22,680 --> 00:14:28,880 Speaker 1: They have earthquakes there. It's it's just not super smart, right, Yeah, Okay, 240 00:14:29,000 --> 00:14:31,040 Speaker 1: let's get to all the all the various things I 241 00:14:31,080 --> 00:14:34,080 Speaker 1: promised in the introduction here, which I I promise our 242 00:14:34,120 --> 00:14:37,280 Speaker 1: listeners you will explain with great authority, which is, you know, 243 00:14:37,320 --> 00:14:41,880 Speaker 1: we've had this this long, ferocious rally. Now, I mean 244 00:14:41,920 --> 00:14:44,000 Speaker 1: we call it a seven month rally. It's it's you know, 245 00:14:44,040 --> 00:14:46,760 Speaker 1: it's really longer than that eighteen month rally. Just those 246 00:14:46,800 --> 00:14:51,640 Speaker 1: seven consecutive months, and now you know, we do sort 247 00:14:51,680 --> 00:14:54,000 Speaker 1: of all. I've gained the confidence that the FED is 248 00:14:54,800 --> 00:14:58,760 Speaker 1: you know, getting ready to start taping, tapering asset purchases. 249 00:14:59,480 --> 00:15:02,560 Speaker 1: I wonder you know how important was that in your 250 00:15:02,600 --> 00:15:06,760 Speaker 1: opinions to the rally? Uh? And does tapering matter given 251 00:15:06,840 --> 00:15:11,240 Speaker 1: sort of you know, that reopening uh trend that's going 252 00:15:11,320 --> 00:15:15,360 Speaker 1: on with all these people with you know, swollen savings 253 00:15:15,360 --> 00:15:19,080 Speaker 1: accounts now to some degree or not, you know, maybe 254 00:15:19,080 --> 00:15:21,760 Speaker 1: not fully ready to take those cruise ships, but at 255 00:15:21,800 --> 00:15:24,640 Speaker 1: least ready to go out and eat and maybe you know, 256 00:15:25,520 --> 00:15:28,200 Speaker 1: do something besides sit on zoom calls and watch Netflix 257 00:15:28,240 --> 00:15:33,360 Speaker 1: all day? You know, is tapering a sort of a 258 00:15:33,400 --> 00:15:35,520 Speaker 1: boogeyman that we don't have to worry about giving all 259 00:15:35,560 --> 00:15:39,080 Speaker 1: those other forces in the real economy. I'm not usually 260 00:15:39,120 --> 00:15:44,880 Speaker 1: a fan of, Oh, I don't know, collective government thought, right, Like, 261 00:15:45,040 --> 00:15:47,960 Speaker 1: I'm an American, I'm you know, independent, I'm a hippie, 262 00:15:47,960 --> 00:15:50,800 Speaker 1: I'm whatever you wanna, you know. But I think the 263 00:15:50,800 --> 00:15:54,400 Speaker 1: Fed has done exactly the right thing in these last 264 00:15:54,480 --> 00:15:57,840 Speaker 1: eighteen months. And we're gonna get to that answer about 265 00:15:57,880 --> 00:16:00,840 Speaker 1: how it's affected the markets. Right. So the thing it 266 00:16:00,920 --> 00:16:04,720 Speaker 1: did was bring rates down immediately back to that zero 267 00:16:04,960 --> 00:16:08,240 Speaker 1: like sorry, quarter of basis point close enough to zero 268 00:16:08,280 --> 00:16:11,400 Speaker 1: we call it zero interest rates, right, And then they 269 00:16:11,480 --> 00:16:14,480 Speaker 1: did they understood from the two thousand and eight time 270 00:16:14,520 --> 00:16:18,800 Speaker 1: frame that to really make sure that interest rates stay low, 271 00:16:18,920 --> 00:16:21,080 Speaker 1: you have to do these bond purchases, so they've been 272 00:16:21,160 --> 00:16:25,040 Speaker 1: doing that now. I think what Powell's theory is this, 273 00:16:25,520 --> 00:16:28,960 Speaker 1: and this came through so clear to me, or maybe 274 00:16:29,000 --> 00:16:31,800 Speaker 1: he was just talking. What I believe is you have 275 00:16:31,880 --> 00:16:35,360 Speaker 1: to get people back to work, all of them that can. 276 00:16:36,040 --> 00:16:39,960 Speaker 1: And that is his focus, not an on not on inflation, 277 00:16:40,840 --> 00:16:43,320 Speaker 1: but on getting people back to work. And that is 278 00:16:43,360 --> 00:16:47,720 Speaker 1: going to make it palatable to be weaned off of 279 00:16:47,760 --> 00:16:53,320 Speaker 1: the bond purchases because I don't believe that interest rates 280 00:16:53,320 --> 00:16:55,920 Speaker 1: will shoot back up, right, And I'm talking when I 281 00:16:55,920 --> 00:16:58,560 Speaker 1: talk interest rates, I'm talking the tenure, So the ten 282 00:16:58,640 --> 00:17:00,720 Speaker 1: uere isn't going to go like a two in a 283 00:17:00,760 --> 00:17:04,760 Speaker 1: minute and a half after they start or start tapering. Right. 284 00:17:05,200 --> 00:17:09,600 Speaker 1: But I think in stock prices, we always look at 285 00:17:09,640 --> 00:17:14,480 Speaker 1: PE price over earnings. So right now we're at high 286 00:17:14,560 --> 00:17:18,919 Speaker 1: PE right where we are paying more for that stream 287 00:17:18,960 --> 00:17:21,040 Speaker 1: of cash flows. So we have to be willing to 288 00:17:21,080 --> 00:17:23,640 Speaker 1: pay more for these companies. What we need to do 289 00:17:23,720 --> 00:17:27,880 Speaker 1: is have the earnings grow so the PE follow falls, 290 00:17:27,960 --> 00:17:30,800 Speaker 1: but the price doesn't fall. Does that make sense. I'm 291 00:17:30,800 --> 00:17:34,879 Speaker 1: trying to do math on radio, so it's really tough. 292 00:17:35,400 --> 00:17:38,439 Speaker 1: But you know, this is a division problem, and you 293 00:17:38,520 --> 00:17:41,200 Speaker 1: don't want to make the price change all that much 294 00:17:41,200 --> 00:17:44,720 Speaker 1: whenever you're raising interest rates. And I think Powell is 295 00:17:44,760 --> 00:17:48,800 Speaker 1: trying to guarantee that companies will have more earnings if 296 00:17:49,200 --> 00:17:53,280 Speaker 1: the economies back to more or less full speed. And 297 00:17:53,320 --> 00:17:56,760 Speaker 1: that's why he's been judicious about not cutting these the 298 00:17:56,800 --> 00:18:00,720 Speaker 1: bond purchases before this, because he's seen these uh. I 299 00:18:00,760 --> 00:18:04,359 Speaker 1: don't think he's clear voiant. He's just been overly cautious 300 00:18:04,440 --> 00:18:07,840 Speaker 1: and been paid back with all of the variant kind 301 00:18:07,880 --> 00:18:11,119 Speaker 1: of noise in the system. Does that make sense? It 302 00:18:11,160 --> 00:18:13,359 Speaker 1: makes sense, And I have I do have a follow 303 00:18:13,440 --> 00:18:17,159 Speaker 1: up in UH in that I've read a couple of 304 00:18:17,359 --> 00:18:20,600 Speaker 1: reports again reports, and I spent all my time reading 305 00:18:20,640 --> 00:18:23,320 Speaker 1: reports and notes, but a few of them this week 306 00:18:23,359 --> 00:18:26,560 Speaker 1: said that we're back in a bad news is good 307 00:18:26,600 --> 00:18:31,720 Speaker 1: news environment. I know the ADP number disappointed this week, 308 00:18:31,760 --> 00:18:34,920 Speaker 1: and that's exactly when I started seeing some of those notes. 309 00:18:34,920 --> 00:18:37,119 Speaker 1: So I'm wondering if if that makes sense to you, 310 00:18:37,840 --> 00:18:40,840 Speaker 1: if potentially we could be in another bad news is 311 00:18:40,880 --> 00:18:44,960 Speaker 1: good news environment. Yeah, I mean everybody loves low interest rates. 312 00:18:45,080 --> 00:18:47,800 Speaker 1: Everybody on Wall Street, let's put it that way, except 313 00:18:47,840 --> 00:18:51,959 Speaker 1: for the banks themselves, love love low interest rates. And 314 00:18:52,000 --> 00:18:56,639 Speaker 1: it's because it gives us the freedom to continue buying 315 00:18:56,800 --> 00:19:02,919 Speaker 1: those cash flows at elevated ratios. Right So, we're paying 316 00:19:03,480 --> 00:19:07,840 Speaker 1: what thirty seven times forward earnings for Microsoft right now, 317 00:19:07,840 --> 00:19:11,960 Speaker 1: which is you know, huge, But if their earnings can 318 00:19:12,000 --> 00:19:15,720 Speaker 1: continue to grow while interest rates fall, then their price 319 00:19:15,720 --> 00:19:36,000 Speaker 1: shouldn't fall, you know, uh can Before we get to 320 00:19:36,680 --> 00:19:39,639 Speaker 1: our Craziest Things segment, I also wanted to talk just 321 00:19:39,760 --> 00:19:44,639 Speaker 1: briefly about UM, your sector neutral strategy, which I know 322 00:19:44,800 --> 00:19:49,439 Speaker 1: is doing well this year, outperforming the SMP at least UM, 323 00:19:49,480 --> 00:19:52,480 Speaker 1: which obviously is doing well this year. Talk to me 324 00:19:52,520 --> 00:19:56,960 Speaker 1: about sort of what is the appeal of going sector neutral? 325 00:19:57,000 --> 00:20:00,680 Speaker 1: I mean, my guess is that there are certain investors 326 00:20:00,720 --> 00:20:03,239 Speaker 1: who want to be exposed to growth but don't want 327 00:20:03,280 --> 00:20:06,320 Speaker 1: to be overloaded with tech. Maybe is that? Is that? It? 328 00:20:06,359 --> 00:20:12,320 Speaker 1: In a nutshell, it is, and I mean I kind 329 00:20:12,359 --> 00:20:15,280 Speaker 1: of when I came up with it, I was trying 330 00:20:15,320 --> 00:20:21,040 Speaker 1: to do risk remediation. Because the strategy was made UM 331 00:20:21,040 --> 00:20:25,280 Speaker 1: we started running it for another advisor and you know, 332 00:20:25,359 --> 00:20:29,240 Speaker 1: doing it for their clients and Boca as a subadvisor, 333 00:20:29,880 --> 00:20:33,760 Speaker 1: so they wanted more growth, but not like scary growth, 334 00:20:34,119 --> 00:20:36,440 Speaker 1: and I said, sure, we can do this sector neutral 335 00:20:36,520 --> 00:20:41,320 Speaker 1: thing which will force my hand is a portfolio manager 336 00:20:41,680 --> 00:20:47,480 Speaker 1: to maintain, you know, alignment with the all of the sectors. 337 00:20:48,000 --> 00:20:50,280 Speaker 1: Why is this important? A lot of people who are 338 00:20:50,320 --> 00:20:53,120 Speaker 1: running money will say things like I hate energy, I'm 339 00:20:53,160 --> 00:20:55,240 Speaker 1: not gonna have any energy. And then when energy does 340 00:20:55,320 --> 00:20:58,880 Speaker 1: really well any year, they get their clock cleaned. Right, Well, 341 00:20:58,920 --> 00:21:01,080 Speaker 1: who cares about the manage? Are the people who are 342 00:21:01,119 --> 00:21:04,879 Speaker 1: holding those assets get their clock cleaned? And you know 343 00:21:05,040 --> 00:21:10,920 Speaker 1: that's tough. What it really is a great little way 344 00:21:11,000 --> 00:21:13,320 Speaker 1: to take a little bit of risk off the table. 345 00:21:13,680 --> 00:21:17,000 Speaker 1: But what we're doing is this is where UM. The 346 00:21:17,200 --> 00:21:20,879 Speaker 1: SNP five is the benchmark. The SNP five has a 347 00:21:20,960 --> 00:21:24,760 Speaker 1: lot concentrated in those top five names, right, so we're 348 00:21:24,760 --> 00:21:30,159 Speaker 1: going further down into the market cap, you know, lower 349 00:21:30,280 --> 00:21:34,439 Speaker 1: market caps. And the great thing is some of the 350 00:21:34,480 --> 00:21:38,080 Speaker 1: stocks I've picked have been scooped up by larger companies. 351 00:21:38,840 --> 00:21:42,199 Speaker 1: And it's been great so far, right because you know, 352 00:21:42,280 --> 00:21:45,560 Speaker 1: now I have to find another smaller company for healthcare 353 00:21:45,600 --> 00:21:48,640 Speaker 1: because one of my UM stocks is getting taken out 354 00:21:48,920 --> 00:21:51,280 Speaker 1: and it's a double in eighteen months. I'll take that 355 00:21:51,359 --> 00:21:55,480 Speaker 1: all day. So that's kind of reinforcing. Now you have 356 00:21:55,520 --> 00:21:57,120 Speaker 1: to be a good stock picker. You have to pick 357 00:21:57,359 --> 00:22:00,280 Speaker 1: you know, good stocks and you know come a needs 358 00:22:00,320 --> 00:22:02,439 Speaker 1: that other companies want to buy. I mean, that's not 359 00:22:02,480 --> 00:22:04,239 Speaker 1: why I'm doing it. I just said, oh, this is 360 00:22:04,320 --> 00:22:08,680 Speaker 1: somebody with an unusual product line and looks poised for growth. 361 00:22:09,080 --> 00:22:13,280 Speaker 1: So you know, that gives you an opportunity to participate 362 00:22:13,440 --> 00:22:18,359 Speaker 1: in that cycle of smaller companies being bought by larger companies, 363 00:22:18,480 --> 00:22:21,000 Speaker 1: and so far it's working. It's it's a fascinating phenomenon 364 00:22:21,119 --> 00:22:23,080 Speaker 1: that I feel like a lot of managers of either 365 00:22:23,119 --> 00:22:26,639 Speaker 1: small caps are all caps type of funds. They never 366 00:22:26,680 --> 00:22:29,800 Speaker 1: say they explicitly are looking for takeover targets, but that 367 00:22:29,840 --> 00:22:32,359 Speaker 1: always ends up being sort of a big source of 368 00:22:32,400 --> 00:22:34,400 Speaker 1: their their positive returns. I mean, I guess you drive 369 00:22:34,440 --> 00:22:39,280 Speaker 1: yourself nuts just trying to look for targets exclusively. Well 370 00:22:39,359 --> 00:22:43,359 Speaker 1: you can't. But what I've found is if you get quality, 371 00:22:43,640 --> 00:22:45,880 Speaker 1: like everybody's looking for the same thing, I don't care 372 00:22:45,920 --> 00:22:48,639 Speaker 1: if it's an investor or a company that wants to 373 00:22:48,680 --> 00:22:51,960 Speaker 1: grow and they say, oh, we'll do We'll buy instead 374 00:22:51,960 --> 00:22:54,879 Speaker 1: of build Okay, I mean that's what every company is 375 00:22:54,920 --> 00:22:59,280 Speaker 1: doing if you can find that team of good managers 376 00:22:59,400 --> 00:23:03,080 Speaker 1: that are made cut products that customers love. And this 377 00:23:03,160 --> 00:23:07,520 Speaker 1: isn't just regular like retail customers. Corporate customers can love 378 00:23:07,560 --> 00:23:10,960 Speaker 1: a product too, and if you're good at making that product, 379 00:23:11,040 --> 00:23:16,160 Speaker 1: you are a candidate for takeover. And yeah, and it's 380 00:23:16,160 --> 00:23:19,480 Speaker 1: a good it's a good gig. And at another good gig, Bildonna, 381 00:23:20,119 --> 00:23:23,160 Speaker 1: I'm really struggling for the segway here, but uh, let's 382 00:23:23,160 --> 00:23:26,280 Speaker 1: go with that. Another good gig is the crazy Things segment. 383 00:23:26,720 --> 00:23:30,359 Speaker 1: Stand clear of the craziest things we saw in markets 384 00:23:30,400 --> 00:23:33,640 Speaker 1: this week. That's a good gig for you, of Aldonna. 385 00:23:33,760 --> 00:23:36,119 Speaker 1: So you start us off, what's the craziest thing you 386 00:23:36,160 --> 00:23:39,919 Speaker 1: saw in markets this week? Well, before we get to 387 00:23:39,960 --> 00:23:43,439 Speaker 1: what the craziest thing I saw was, I wanted to 388 00:23:43,600 --> 00:23:46,680 Speaker 1: remind everybody that everybody can give us a call at 389 00:23:46,720 --> 00:23:50,480 Speaker 1: six four six three to four zero, leave us a 390 00:23:50,560 --> 00:23:52,960 Speaker 1: voicemail and we may even play it on the show. 391 00:23:53,680 --> 00:23:56,080 Speaker 1: Another way to get your craziest thing on the show 392 00:23:56,320 --> 00:23:58,800 Speaker 1: is to send me a Twitter message, which which somebody 393 00:23:58,840 --> 00:24:01,160 Speaker 1: did earlier this week. And so I want to give 394 00:24:01,280 --> 00:24:06,920 Speaker 1: doctor at Dr Einstein a shout out. I really hope 395 00:24:06,920 --> 00:24:11,000 Speaker 1: I'm pronouncing that correctly. Of course, his real name, I'm 396 00:24:11,040 --> 00:24:15,439 Speaker 1: sure it is. Doctor is his first name. Einstein is 397 00:24:15,520 --> 00:24:18,760 Speaker 1: his second name. Uh, and I say Stein because there's 398 00:24:18,920 --> 00:24:21,680 Speaker 1: there's a little underscore, a little dash between the one 399 00:24:21,800 --> 00:24:25,520 Speaker 1: and the stein. So forgive me, but um, he and 400 00:24:25,560 --> 00:24:29,320 Speaker 1: I have been exchanging messages on Twitter, and he and he, 401 00:24:29,480 --> 00:24:31,879 Speaker 1: so he sent me something about some of the market. 402 00:24:31,880 --> 00:24:33,800 Speaker 1: Mattes is that he's seen in the NFS n f 403 00:24:33,880 --> 00:24:36,399 Speaker 1: T space once again. I know we we covered that 404 00:24:36,480 --> 00:24:40,480 Speaker 1: last week, but he said there's an alternative, earlier version 405 00:24:40,560 --> 00:24:44,080 Speaker 1: of the Ether Rocks contract that lets anyone meant a 406 00:24:44,200 --> 00:24:47,920 Speaker 1: uniquely numbered rock for free. The crazy thing is that 407 00:24:47,960 --> 00:24:51,760 Speaker 1: anyone can mint basically any uniquely numbered rock, and there's 408 00:24:51,800 --> 00:24:55,320 Speaker 1: wild speculation on the value of those rocks, which don't 409 00:24:55,320 --> 00:24:58,000 Speaker 1: even have a picture or n f T token. So 410 00:24:58,760 --> 00:25:02,000 Speaker 1: these Ether rocks, I've been these hugely popular n f 411 00:25:02,040 --> 00:25:04,600 Speaker 1: T s. They're supposed to be only a hundred of them. 412 00:25:04,920 --> 00:25:07,800 Speaker 1: And so he was flagging to us that there's this code, 413 00:25:07,880 --> 00:25:10,000 Speaker 1: there's there's something we're going on with the code where 414 00:25:10,000 --> 00:25:14,240 Speaker 1: you can actually I suppose make new copies. I really 415 00:25:14,240 --> 00:25:17,639 Speaker 1: hope I'm doing this do justice. But you can create 416 00:25:17,680 --> 00:25:19,479 Speaker 1: more of them, and some of them don't even have 417 00:25:19,520 --> 00:25:22,120 Speaker 1: a picture attached to them. And these things are like 418 00:25:23,680 --> 00:25:25,720 Speaker 1: just like with everything else in the end of T 419 00:25:25,880 --> 00:25:29,159 Speaker 1: space there there, everybody's going nuts over them. Basically. I 420 00:25:29,200 --> 00:25:31,159 Speaker 1: think I feel like Kim hears all this and she 421 00:25:31,280 --> 00:25:36,520 Speaker 1: just thinks in video and video and video. No, I'm 422 00:25:36,520 --> 00:25:40,560 Speaker 1: thinking back to my youth and thinking pet rocks like 423 00:25:41,119 --> 00:25:45,400 Speaker 1: that was the thing and you can't escape it, man, 424 00:25:45,720 --> 00:25:50,920 Speaker 1: It just it mutates their time. Gosh, I think that 425 00:25:51,000 --> 00:25:55,960 Speaker 1: was the idea behind ether rocks. It was the was 426 00:25:56,000 --> 00:25:59,719 Speaker 1: it in the seventies and the eighties? It was rocks, right, 427 00:25:59,760 --> 00:26:02,919 Speaker 1: So I think that's the inspiration. That's pretty good anyway. 428 00:26:02,920 --> 00:26:05,879 Speaker 1: It's fun to cover cover this n f T stuff. 429 00:26:05,920 --> 00:26:08,640 Speaker 1: There's just something. There's always something going on over there. 430 00:26:08,760 --> 00:26:11,800 Speaker 1: But I want to give Dr Einstein a shout out. 431 00:26:11,840 --> 00:26:14,959 Speaker 1: Thanks for sending that. Thank you, Dr Einstein. If that 432 00:26:15,160 --> 00:26:17,680 Speaker 1: is in fact your real dame, All right, well what's 433 00:26:17,720 --> 00:26:20,520 Speaker 1: your crazy thing? Now? You can't rely completely on Dr 434 00:26:20,560 --> 00:26:24,879 Speaker 1: Einstein here, I can't, but I try to top his 435 00:26:25,119 --> 00:26:27,240 Speaker 1: and mine is like really far out there. So I 436 00:26:27,280 --> 00:26:30,840 Speaker 1: hope you like it. But it's uh, it's this story 437 00:26:30,920 --> 00:26:34,000 Speaker 1: that I saw. It's about Flame and Hot mountain Dew. 438 00:26:34,480 --> 00:26:37,840 Speaker 1: So PepsiCo owns Mountain Dew. They have this brand new 439 00:26:37,880 --> 00:26:43,360 Speaker 1: flavor for Flame and Hot Cheetos flavored mountain Dew drinks. 440 00:26:43,880 --> 00:26:47,879 Speaker 1: It was immediately sold out, and so I think on 441 00:26:47,920 --> 00:26:51,080 Speaker 1: the internet there's speculation over, you know, when they're going 442 00:26:51,119 --> 00:26:54,399 Speaker 1: to restock and when people can buy this sweet and 443 00:26:54,600 --> 00:26:57,480 Speaker 1: sour mountain dew again. But it also made me think 444 00:26:57,480 --> 00:27:00,560 Speaker 1: of this story that's been making its rounds sutainly. It's 445 00:27:00,600 --> 00:27:04,760 Speaker 1: about the guy who claims he invented hot Cheetos either 446 00:27:05,400 --> 00:27:09,480 Speaker 1: this one. Yeah, yeah. His name is Richard montagne Is. 447 00:27:09,560 --> 00:27:12,439 Speaker 1: He even wrote a book about it, and there's I 448 00:27:12,480 --> 00:27:17,280 Speaker 1: think some speculation over how much he was involved with 449 00:27:17,560 --> 00:27:21,480 Speaker 1: the creation of hot Cheetos or something. Right, and he 450 00:27:21,560 --> 00:27:23,720 Speaker 1: took it to the he was, yeah, that's that's the 451 00:27:23,800 --> 00:27:26,160 Speaker 1: name of the book. It's it's called Flame and Hot, 452 00:27:26,240 --> 00:27:29,440 Speaker 1: The incredible true story of one man's rise from janitor 453 00:27:29,520 --> 00:27:33,440 Speaker 1: to top executive. Eva Longoria is making a movie about this, 454 00:27:33,680 --> 00:27:36,840 Speaker 1: so be on the lookout for that. Anyway. That's my 455 00:27:36,880 --> 00:27:41,040 Speaker 1: craziest thing. We have this public company involved Peptico owns 456 00:27:41,080 --> 00:27:44,480 Speaker 1: as I said, Mountain the Mountain Dew brand, and I 457 00:27:44,480 --> 00:27:46,120 Speaker 1: don't know. I don't know if i'd give it a try. 458 00:27:46,160 --> 00:27:47,880 Speaker 1: I love hot Cheetos, but I don't know if i'd 459 00:27:47,880 --> 00:27:50,720 Speaker 1: give the Mountain me neither. I don't know. Maybe I 460 00:27:50,760 --> 00:27:53,760 Speaker 1: would probably try it, but uh, we'll see. We'll see 461 00:27:53,760 --> 00:27:55,840 Speaker 1: how how big of a success that that one is. 462 00:27:56,160 --> 00:27:59,800 Speaker 1: I have my doubts on that one, but maybe I 463 00:27:59,800 --> 00:28:02,600 Speaker 1: can get my hands on it. We can next time 464 00:28:02,640 --> 00:28:05,520 Speaker 1: we're in the office. Do you do that? You first? 465 00:28:05,760 --> 00:28:08,159 Speaker 1: You first? If you if your face doesn't crinkle up, 466 00:28:08,160 --> 00:28:12,680 Speaker 1: then maybe maybe I'll try it. But um, I'm gonna 467 00:28:12,720 --> 00:28:14,639 Speaker 1: do mine really quick, just because I want to. I 468 00:28:14,680 --> 00:28:17,919 Speaker 1: want to get kims into But um, you know, the 469 00:28:18,000 --> 00:28:22,440 Speaker 1: Game Stop drama never ceases. I remember us. I think 470 00:28:22,480 --> 00:28:26,679 Speaker 1: we joked uh last year even about well, if it 471 00:28:26,760 --> 00:28:29,359 Speaker 1: stays at these levels, maybe they'll add it to the 472 00:28:29,440 --> 00:28:32,639 Speaker 1: SMP five hundred. Uh, and everyone chuckled, ha ha ha, 473 00:28:33,000 --> 00:28:35,240 Speaker 1: like it's ever gonna stay at these levels. Two's weren't that, 474 00:28:35,320 --> 00:28:38,200 Speaker 1: But sure enough The Journal While Street Journal has a 475 00:28:38,240 --> 00:28:41,520 Speaker 1: story out this week speculating on whether or not Game 476 00:28:41,600 --> 00:28:43,880 Speaker 1: Stop could be added to the sp five hundred. It's 477 00:28:43,880 --> 00:28:47,640 Speaker 1: way bigger than some of the smallest members of the index, 478 00:28:47,680 --> 00:28:51,480 Speaker 1: but doesn't uh, it doesn't meet all the criteria including, uh, 479 00:28:51,600 --> 00:28:54,280 Speaker 1: you know, having profits in the last quarter, and I 480 00:28:54,280 --> 00:28:56,360 Speaker 1: think it has to have a sort of a net 481 00:28:56,360 --> 00:29:00,600 Speaker 1: profit over the trailing four quarters. But we'll see. Stranger 482 00:29:00,640 --> 00:29:03,600 Speaker 1: things have happened. I suppose then game stop joining the 483 00:29:03,680 --> 00:29:07,480 Speaker 1: SMP and not. Leavan had a good argument, a good 484 00:29:07,520 --> 00:29:11,120 Speaker 1: column arguing, well, you know, should the committee actually keep 485 00:29:11,120 --> 00:29:14,040 Speaker 1: this out if it meets the qualifications just because everything 486 00:29:14,240 --> 00:29:17,960 Speaker 1: everyone thinks it's crazy, And he suggests a weird SMP 487 00:29:18,120 --> 00:29:21,680 Speaker 1: index to capture all these stocks and a normal SMP index. 488 00:29:21,760 --> 00:29:23,960 Speaker 1: I I don't know. I think there might be something 489 00:29:24,000 --> 00:29:27,960 Speaker 1: to that sector neutral and weirdness neutral. Kim, what do 490 00:29:28,000 --> 00:29:31,480 Speaker 1: you think is that the next big thing? I I 491 00:29:32,000 --> 00:29:34,680 Speaker 1: kind of like that. I would like a weird stock index. 492 00:29:34,880 --> 00:29:37,360 Speaker 1: I think we I think somebody should put it together. 493 00:29:37,440 --> 00:29:40,000 Speaker 1: How about us three, let's get together, because you know, 494 00:29:40,040 --> 00:29:41,800 Speaker 1: if dal Jones can do it, we could do our 495 00:29:41,840 --> 00:29:44,560 Speaker 1: own thing. Right. We could just have like, what are 496 00:29:44,560 --> 00:29:49,800 Speaker 1: the weirdest stocks in? And they could be penny stock. Um. 497 00:29:49,920 --> 00:29:52,360 Speaker 1: I remember years. I don't know if this will count 498 00:29:52,400 --> 00:29:55,120 Speaker 1: is my weird thing. But years and years ago, UM, 499 00:29:55,360 --> 00:29:58,560 Speaker 1: when I worked at the asset management firm before the 500 00:29:58,560 --> 00:30:01,360 Speaker 1: one I started, UM, I had to be the girl 501 00:30:01,400 --> 00:30:04,440 Speaker 1: that answer or the person that answered all the client's 502 00:30:04,720 --> 00:30:06,960 Speaker 1: questions on should I invest in this? My brother in 503 00:30:07,040 --> 00:30:10,000 Speaker 1: law told me about this, right, we all know that 504 00:30:10,000 --> 00:30:12,400 Speaker 1: that kind of it was a great beat. I was 505 00:30:12,440 --> 00:30:15,080 Speaker 1: so glad to get off of that. Okay, Anyhow, the 506 00:30:15,160 --> 00:30:18,520 Speaker 1: weirdest one was a company. Now this was a penny 507 00:30:18,560 --> 00:30:21,640 Speaker 1: stock truly, it traded like two cents or something like that. 508 00:30:22,000 --> 00:30:25,880 Speaker 1: It was growing plankton and then getting carbon credits for 509 00:30:26,000 --> 00:30:30,560 Speaker 1: releasing plankton into the ocean. Can I make this up? Now? 510 00:30:30,600 --> 00:30:33,840 Speaker 1: I cannot, And I said, no, this is not a 511 00:30:33,840 --> 00:30:36,440 Speaker 1: good idea. I don't know, like I don't know who 512 00:30:36,480 --> 00:30:38,880 Speaker 1: would pay for it. I you know, there were no 513 00:30:38,960 --> 00:30:42,280 Speaker 1: carbon markets at that time or and I didn't even 514 00:30:42,360 --> 00:30:47,520 Speaker 1: know like they didn't explain how that the credits would work, 515 00:30:47,600 --> 00:30:50,280 Speaker 1: like who was giving them credits and where they could be, 516 00:30:50,320 --> 00:30:52,600 Speaker 1: so you know what I mean, there was a big 517 00:30:52,680 --> 00:30:56,479 Speaker 1: missing thing. But I just think just growing plankton, I 518 00:30:56,520 --> 00:30:59,760 Speaker 1: think that could end you up in the weird stockuments. 519 00:31:00,320 --> 00:31:02,200 Speaker 1: I would I would give a high waiting to that one, 520 00:31:02,240 --> 00:31:06,840 Speaker 1: I think for sure, regardless of the market. Yeah, big tanks, 521 00:31:06,840 --> 00:31:10,120 Speaker 1: like in somebody's basement. I don't know where do you 522 00:31:10,160 --> 00:31:12,000 Speaker 1: grow up, plankton, I think it has to be in 523 00:31:12,040 --> 00:31:14,400 Speaker 1: a basement. Absolutely, that's where you gotta start. If not 524 00:31:14,440 --> 00:31:18,280 Speaker 1: a garage, maybe, I don't know. Yes, no, No, that's 525 00:31:18,320 --> 00:31:21,560 Speaker 1: that's too exposed. The plank didn't like it dark. Yeah, 526 00:31:21,760 --> 00:31:26,640 Speaker 1: I don't know. It's too Silicon Valley. Yeah. Here in 527 00:31:26,680 --> 00:31:30,920 Speaker 1: the Touching we have a major krill uh Harvester has 528 00:31:30,960 --> 00:31:33,160 Speaker 1: a has a headquarters there. Krill is a big thing 529 00:31:33,280 --> 00:31:35,480 Speaker 1: for the fish oil tablets. So but at least that's 530 00:31:36,240 --> 00:31:39,640 Speaker 1: it's a better use case. I suppose that U or 531 00:31:39,760 --> 00:31:42,560 Speaker 1: carbon credits for that's pretty good to Kim. I don't 532 00:31:42,600 --> 00:31:44,440 Speaker 1: know if that was your official craziest thing, but I 533 00:31:44,480 --> 00:31:48,760 Speaker 1: like that one. Thank you. And with that, I think, Philana, 534 00:31:48,800 --> 00:31:50,640 Speaker 1: I think that's all the time we have. What do 535 00:31:50,640 --> 00:31:52,560 Speaker 1: you think, Phil Dana? I allow you to anoint the 536 00:31:52,560 --> 00:31:57,320 Speaker 1: winner of this week's craziest Thing? Can I pick myself 537 00:31:57,440 --> 00:32:02,600 Speaker 1: or not? Absolutely? Not? No, yesterday, let me think about it. 538 00:32:02,640 --> 00:32:09,000 Speaker 1: I'll consider it. I'll picked myself for approximately podcasts in 539 00:32:09,000 --> 00:32:13,320 Speaker 1: a row, so I guess you can pick yourself. You did, 540 00:32:13,400 --> 00:32:17,200 Speaker 1: but dr Einstein again. Uh he Actually he sent me 541 00:32:17,240 --> 00:32:20,960 Speaker 1: a couple of different topics. All of them were in 542 00:32:21,000 --> 00:32:23,040 Speaker 1: the end of T space and all of them were interesting. 543 00:32:23,160 --> 00:32:28,400 Speaker 1: So maybe maybe we can Dr Einstein it is. Although 544 00:32:28,400 --> 00:32:31,480 Speaker 1: I like to plankton, I gotta say I'm gonna do 545 00:32:31,520 --> 00:32:35,480 Speaker 1: a planked plankton f t S. I think it's gonna 546 00:32:35,480 --> 00:32:40,560 Speaker 1: be my thing. I want to work on that. Kim First, 547 00:32:40,680 --> 00:32:42,680 Speaker 1: thanks so much for your time. Go take care of 548 00:32:42,720 --> 00:32:53,600 Speaker 1: those chickens. Thank you. What Goes Up We'll be back 549 00:32:53,640 --> 00:32:55,480 Speaker 1: next week. Until then, you can find us on the 550 00:32:55,480 --> 00:32:59,200 Speaker 1: Bloomberg Terminal, website and app, or wherever you get your podcasts. 551 00:32:59,720 --> 00:33:01,280 Speaker 1: We'd of it if you took the time to rate 552 00:33:01,320 --> 00:33:04,240 Speaker 1: and review the show on Apple Podcasts so more listeners 553 00:33:04,240 --> 00:33:06,520 Speaker 1: can find us, and you can find us on Twitter. 554 00:33:06,680 --> 00:33:10,640 Speaker 1: Follow me at Reaganonymous. Bildonna high Rich is at Bildonna 555 00:33:10,720 --> 00:33:14,480 Speaker 1: high Rich. You can also follow Bloomberg Podcasts at podcasts 556 00:33:14,920 --> 00:33:16,880 Speaker 1: and Thank you to Charlie Pelldo, Bloomberg Radio and the 557 00:33:16,920 --> 00:33:19,480 Speaker 1: voice of the New York City Subway System. What Goes 558 00:33:19,560 --> 00:33:23,200 Speaker 1: Up is produced by Tofur Foreheads, head of Bloomberg podcasts 559 00:33:23,320 --> 00:33:26,520 Speaker 1: is Francesco Levy, thanks for listening, See you next time.