1 00:00:03,680 --> 00:00:07,120 Speaker 1: Scrap on your parachute. It's time for What Goes Up 2 00:00:07,360 --> 00:00:15,000 Speaker 1: with Sarah Ponzick and Mike Reagan. Hello and welcome to 3 00:00:15,080 --> 00:00:18,760 Speaker 1: What goes Up, a Bloomberg weekly markets podcast. I'm Sara Ponze, 4 00:00:19,079 --> 00:00:21,640 Speaker 1: reporter on the Cross Asset team, and I'm Mike Reagan, 5 00:00:21,800 --> 00:00:25,040 Speaker 1: a senior editor at Bloomberg. This week on the show, 6 00:00:25,239 --> 00:00:29,440 Speaker 1: the growth stock selloff continues as a proxy Cathy Wood's 7 00:00:29,480 --> 00:00:33,440 Speaker 1: archyt fel into a technical bear market as shares of 8 00:00:33,440 --> 00:00:36,479 Speaker 1: companies like Tesla continue to head lower than NAZAC one 9 00:00:36,520 --> 00:00:39,600 Speaker 1: hundreds now down from a high. And this, of course, 10 00:00:39,640 --> 00:00:42,840 Speaker 1: as rates continue their trek higher, how long can it last? 11 00:00:42,960 --> 00:00:46,600 Speaker 1: We'll discuss and uh, Sarah, I'm afraid. What we also 12 00:00:46,680 --> 00:00:50,280 Speaker 1: have to discuss on this very special episode of What 13 00:00:50,400 --> 00:00:55,400 Speaker 1: Goes Up is my embarrassing high school nickname. If you 14 00:00:55,440 --> 00:00:59,600 Speaker 1: can't tell. Mike is really excited about this, But look, Mike, 15 00:01:00,120 --> 00:01:02,600 Speaker 1: you did this to yourself. Mike a couple of episodes 16 00:01:02,640 --> 00:01:05,840 Speaker 1: ago said look, if we get two hundred ratings on 17 00:01:05,880 --> 00:01:08,880 Speaker 1: Apple podcasts, that he would go out and he would 18 00:01:08,920 --> 00:01:11,640 Speaker 1: dole out his embarrassing high school nickname. He should have 19 00:01:11,720 --> 00:01:14,679 Speaker 1: set the bar higher. But all of our listeners are 20 00:01:14,680 --> 00:01:17,319 Speaker 1: clearly very loyal and everyone more than anything wants to 21 00:01:17,360 --> 00:01:21,399 Speaker 1: know your nickname. So you delivered, you delivered? Do I miss? 22 00:01:21,440 --> 00:01:24,720 Speaker 1: I miss priced this trade terribly. I thought two hundred 23 00:01:24,880 --> 00:01:27,679 Speaker 1: ratings will never get there. I'm safe, but uh, but 24 00:01:27,720 --> 00:01:30,360 Speaker 1: thank you for everyone who listened and left the rating. 25 00:01:30,400 --> 00:01:33,000 Speaker 1: It's means a lot to us. You know, Sarah and 26 00:01:33,080 --> 00:01:35,280 Speaker 1: I have a lot of various duties at Bloomberg, but 27 00:01:35,319 --> 00:01:38,320 Speaker 1: I think, um, this this shows our baby, and uh 28 00:01:38,440 --> 00:01:39,959 Speaker 1: we have we look forward to it every week, and 29 00:01:39,959 --> 00:01:43,880 Speaker 1: it's it's good to see people uh, you know, listening 30 00:01:43,920 --> 00:01:47,000 Speaker 1: and rating and reviewing, regardless of how much pain it 31 00:01:47,080 --> 00:01:50,720 Speaker 1: may cause me. Actually, Sarah, I it's been kind of 32 00:01:50,760 --> 00:01:55,280 Speaker 1: therapeutic for me because, um, I've I've hated this nickname 33 00:01:55,320 --> 00:01:58,320 Speaker 1: for thirty five years, but I've kind of come to 34 00:01:58,560 --> 00:02:01,200 Speaker 1: terms with it, uh through this hole. And I'll explain 35 00:02:01,240 --> 00:02:02,800 Speaker 1: why at the end of the show when we get 36 00:02:02,840 --> 00:02:07,640 Speaker 1: to that nickname. Because although uh, there are some who 37 00:02:07,680 --> 00:02:10,079 Speaker 1: are listening only to hear my embarrassing high school nickname, 38 00:02:10,080 --> 00:02:13,000 Speaker 1: I think more people are listening because we know we 39 00:02:13,080 --> 00:02:17,120 Speaker 1: have a tradition here of having excellent, uh smart expert 40 00:02:17,160 --> 00:02:21,720 Speaker 1: guests to explain the week in the markets, and once 41 00:02:21,760 --> 00:02:24,680 Speaker 1: again we are very excited to have a guest who's 42 00:02:24,680 --> 00:02:27,360 Speaker 1: going to do exactly that. She is the head of 43 00:02:27,480 --> 00:02:31,680 Speaker 1: US equities at Aviva Investors in Chicago. Her name is 44 00:02:31,720 --> 00:02:35,160 Speaker 1: Susan Schmitt. Susan, welcome back to the show. Thank you 45 00:02:35,360 --> 00:02:38,000 Speaker 1: great to be here, and Susan, I think for this 46 00:02:38,040 --> 00:02:40,840 Speaker 1: week the most important question, obviously is did you have 47 00:02:40,880 --> 00:02:49,320 Speaker 1: any embarrassing nicknames in high school? Most important? Exactly exactly, 48 00:02:49,800 --> 00:02:53,239 Speaker 1: But no, I have not made any miss priced ranger here. 49 00:02:53,360 --> 00:02:56,079 Speaker 1: So no, I have not. I have nothing to disclose. 50 00:02:57,800 --> 00:03:01,839 Speaker 1: The answer is yes, will she share it? No, Well, 51 00:03:01,840 --> 00:03:04,760 Speaker 1: that's fine, I guess. I guess I. I made my 52 00:03:04,800 --> 00:03:06,600 Speaker 1: own bed here. I have to ligne it. But Uh 53 00:03:07,120 --> 00:03:10,239 Speaker 1: says and I mean obviously. Once again, this week the 54 00:03:10,400 --> 00:03:13,840 Speaker 1: big story for equities is UH the sideshow of the 55 00:03:13,880 --> 00:03:18,040 Speaker 1: bond market UH rates spiking up on Thursday again above 56 00:03:18,360 --> 00:03:23,080 Speaker 1: one point five in the ten year UM. I suppose 57 00:03:23,160 --> 00:03:25,920 Speaker 1: Jerome Pal did not give the market what he was 58 00:03:25,960 --> 00:03:29,480 Speaker 1: hoping for. I don't know what exactly they were expecting 59 00:03:29,480 --> 00:03:32,560 Speaker 1: out of him, maybe some sort of hint at a 60 00:03:32,639 --> 00:03:36,200 Speaker 1: quote unquote operation twist or yield curve control but how 61 00:03:36,240 --> 00:03:41,360 Speaker 1: do you sort of explain uh, what Pal did on 62 00:03:41,400 --> 00:03:45,240 Speaker 1: Thursday and did he sort of missed the boat or 63 00:03:45,880 --> 00:03:48,520 Speaker 1: I'm kind of about the opinion that taking a little 64 00:03:48,560 --> 00:03:52,200 Speaker 1: froth out of the market is not necessarily uh something 65 00:03:52,240 --> 00:03:54,000 Speaker 1: he's against. I mean, he can always go out and 66 00:03:54,040 --> 00:03:56,839 Speaker 1: give give another speech next week if this one didn't work. 67 00:03:56,880 --> 00:03:59,200 Speaker 1: But what do you think? What's your your take on 68 00:03:59,320 --> 00:04:03,040 Speaker 1: rates and at Wes and Jerome pal speech this week? Well, 69 00:04:03,080 --> 00:04:05,960 Speaker 1: what is happening with rates and equities? So we're seeing 70 00:04:06,000 --> 00:04:08,200 Speaker 1: a lot of ankst and it's the push me, pull 71 00:04:08,240 --> 00:04:11,120 Speaker 1: you market because rates go up, should equities go down? 72 00:04:11,240 --> 00:04:13,080 Speaker 1: Is this a good thing or a bad thing? If 73 00:04:13,160 --> 00:04:16,000 Speaker 1: rates are going up because we expect more growth, that's 74 00:04:16,000 --> 00:04:18,839 Speaker 1: actually a really good thing. And so as we're seeing 75 00:04:18,839 --> 00:04:22,640 Speaker 1: the tenure approach one point five percent and now safely 76 00:04:22,680 --> 00:04:25,560 Speaker 1: they're all all of this week, I think the equity 77 00:04:25,600 --> 00:04:28,120 Speaker 1: markets having a hard time figuring out whether that is 78 00:04:28,160 --> 00:04:31,120 Speaker 1: going to suppress growth or if that just represents the 79 00:04:31,360 --> 00:04:35,520 Speaker 1: optimism that the market has and the achievable optimism and 80 00:04:35,560 --> 00:04:37,760 Speaker 1: goals that we have for the economy as it rolls 81 00:04:37,760 --> 00:04:40,760 Speaker 1: out with the vaccine over the next eighteen months. I 82 00:04:40,800 --> 00:04:43,680 Speaker 1: think Powell statement was pretty interesting because he has been 83 00:04:43,760 --> 00:04:46,479 Speaker 1: so consistent in his messaging that he is going to 84 00:04:46,520 --> 00:04:50,440 Speaker 1: support the economy throughout, and the market is always waiting 85 00:04:50,440 --> 00:04:54,400 Speaker 1: for him to say something slightly different, take a new variation, 86 00:04:54,640 --> 00:04:57,200 Speaker 1: take a new tact on that, take a new track 87 00:04:57,240 --> 00:04:59,560 Speaker 1: on that, and he hasn't. And I think today was 88 00:04:59,600 --> 00:05:02,159 Speaker 1: more of the same. He's still saying he's very important 89 00:05:02,200 --> 00:05:05,599 Speaker 1: the economy. He's not doing any big changes. He's going 90 00:05:05,640 --> 00:05:08,520 Speaker 1: to let this volatility continue at the high end of 91 00:05:08,560 --> 00:05:10,520 Speaker 1: that long the high end at the long end of 92 00:05:10,520 --> 00:05:13,680 Speaker 1: the curve isn't scaring him at all. He's not backing off, 93 00:05:13,720 --> 00:05:16,000 Speaker 1: and the Fed's going to continue to stay the course. 94 00:05:16,320 --> 00:05:18,679 Speaker 1: So I think the market has to absorb that there's 95 00:05:18,720 --> 00:05:21,160 Speaker 1: so many moving parts in the equity markets right now 96 00:05:21,200 --> 00:05:22,960 Speaker 1: that it's really hard to put all the pieces of 97 00:05:23,000 --> 00:05:26,600 Speaker 1: the puzzle together. So, like you said, and Jerom Pell 98 00:05:26,720 --> 00:05:29,000 Speaker 1: has said himself that what we are seeing in the 99 00:05:29,000 --> 00:05:31,880 Speaker 1: bond market is a quote unquote statement of confidence in 100 00:05:31,920 --> 00:05:36,279 Speaker 1: the growth outlook. And I find it interesting. On Thursday, 101 00:05:37,560 --> 00:05:40,360 Speaker 1: when Powell was giving his speech, one of my colleagues, 102 00:05:40,360 --> 00:05:44,120 Speaker 1: built on a Hirich, pointed out that on Twitter hashtag 103 00:05:44,200 --> 00:05:47,600 Speaker 1: stock market crash was trending on Twitter, and it's almost 104 00:05:47,600 --> 00:05:49,560 Speaker 1: a bit ironic because at that point in time, you 105 00:05:49,560 --> 00:05:51,000 Speaker 1: looked at the S and p F punch over the 106 00:05:51,000 --> 00:05:53,400 Speaker 1: past couple of days, what it was down three percent 107 00:05:53,520 --> 00:05:55,919 Speaker 1: from a record. But of course there are areas of 108 00:05:55,960 --> 00:05:59,040 Speaker 1: the market that are seeing significant pain. You look at 109 00:05:59,040 --> 00:06:01,760 Speaker 1: a company like Test. High growth companies then set down 110 00:06:01,800 --> 00:06:04,760 Speaker 1: ten percent, so well more and it depends in which 111 00:06:04,760 --> 00:06:08,400 Speaker 1: companies you are really investing in. It's been said over 112 00:06:08,440 --> 00:06:11,720 Speaker 1: and over that higher yields, well, that's bad for valuations 113 00:06:11,800 --> 00:06:14,760 Speaker 1: or high valuation companies, or that's bad for high growth companies. 114 00:06:14,800 --> 00:06:17,560 Speaker 1: Can you walk us through the actual reasoning for that. 115 00:06:17,880 --> 00:06:20,440 Speaker 1: Why is it that when rates rise you see companies 116 00:06:20,440 --> 00:06:23,279 Speaker 1: like this under pressure. I'm going to counter that with 117 00:06:23,480 --> 00:06:25,600 Speaker 1: look at the Russell two thousand and look at where 118 00:06:25,600 --> 00:06:28,799 Speaker 1: small caps are so well. Yes, these big tech names 119 00:06:28,839 --> 00:06:31,880 Speaker 1: that did very well in twenty are down under pressure. 120 00:06:32,240 --> 00:06:34,320 Speaker 1: At the same time, you're to date those Russell two 121 00:06:34,360 --> 00:06:37,880 Speaker 1: thousand stocks that indexes up over ten percent. So it's 122 00:06:37,920 --> 00:06:39,920 Speaker 1: a big conflict. And I think what you're seeing in 123 00:06:39,960 --> 00:06:44,680 Speaker 1: the small cap names is the reaction to confidence in 124 00:06:45,080 --> 00:06:48,280 Speaker 1: the forward growth and so suddenly these small caps are 125 00:06:48,320 --> 00:06:51,280 Speaker 1: where people feel comfortable investing, when they feel comfortable about 126 00:06:51,279 --> 00:06:54,799 Speaker 1: the economy going forward. We're seeing that in extra really well. 127 00:06:55,120 --> 00:06:58,320 Speaker 1: We're seeing assets come out of those big cap names, 128 00:06:58,400 --> 00:07:01,640 Speaker 1: which were the safe pavements for E twenty where people thought, Okay, 129 00:07:02,000 --> 00:07:03,760 Speaker 1: I know I'm going to get through this with these 130 00:07:03,800 --> 00:07:06,320 Speaker 1: tech heavy names. I'm going to stick here. Where's the 131 00:07:06,320 --> 00:07:08,279 Speaker 1: biggest pressure When we see down days, it's in the 132 00:07:08,320 --> 00:07:11,240 Speaker 1: nastac that tech out the index. So I think when 133 00:07:11,280 --> 00:07:15,280 Speaker 1: people see rising rates, it's always interesting are they rising 134 00:07:15,280 --> 00:07:18,120 Speaker 1: for the right reasons? What does that mean? And it 135 00:07:18,200 --> 00:07:21,320 Speaker 1: has been a long time since we've seen rates rise 136 00:07:21,840 --> 00:07:24,320 Speaker 1: in a gradual way where it hasn't led us into trouble. 137 00:07:24,400 --> 00:07:27,200 Speaker 1: We had this happened when suddenly we had a pandemic. 138 00:07:27,840 --> 00:07:30,520 Speaker 1: In the midstep before that was the FED maybe race 139 00:07:30,640 --> 00:07:32,440 Speaker 1: rates a little too much, and the market had a 140 00:07:32,440 --> 00:07:35,800 Speaker 1: conniption fit over that. So remember that the FED overshot 141 00:07:35,920 --> 00:07:38,960 Speaker 1: slightly had been easing. Then we get to the pandemic 142 00:07:39,040 --> 00:07:41,840 Speaker 1: and race had to drop to zero again. So now 143 00:07:41,960 --> 00:07:44,800 Speaker 1: the markets adjusting to that. I think you have to 144 00:07:44,840 --> 00:07:48,000 Speaker 1: look at the components of the market to see what's 145 00:07:48,040 --> 00:07:50,720 Speaker 1: really moving. The fact that those small caps are doing well, 146 00:07:51,120 --> 00:07:55,520 Speaker 1: tells me that optimism over that overall growth in the 147 00:07:55,520 --> 00:07:59,880 Speaker 1: economy and rates at one point are actually positive. Rates 148 00:07:59,880 --> 00:08:02,080 Speaker 1: are going up for the right reason, and that is 149 00:08:02,120 --> 00:08:06,640 Speaker 1: the overall sentiment versus the other. You know. So one 150 00:08:06,640 --> 00:08:08,880 Speaker 1: of the more interesting things I've read this week is 151 00:08:09,040 --> 00:08:11,760 Speaker 1: UH City Group has some sort of model. Don't ask 152 00:08:11,760 --> 00:08:13,840 Speaker 1: me what's in it. It's a model, alright, but no 153 00:08:13,880 --> 00:08:16,520 Speaker 1: one no one really knows. But they somehow look at 154 00:08:16,560 --> 00:08:22,600 Speaker 1: relative value um of cyclical value and value stocks versus 155 00:08:23,080 --> 00:08:25,320 Speaker 1: that the growth and the big tech stocks that have 156 00:08:25,400 --> 00:08:29,920 Speaker 1: led the way, and somehow they divine out a notion 157 00:08:30,000 --> 00:08:33,120 Speaker 1: that the the equity market is pricing in basically a 158 00:08:33,200 --> 00:08:37,240 Speaker 1: two point two tenure treasury yield um. And they're not 159 00:08:37,280 --> 00:08:40,240 Speaker 1: necessarily saying the bond market is wrong. They're saying, maybe 160 00:08:40,240 --> 00:08:43,400 Speaker 1: the equity market has gotten ahead of itself um with 161 00:08:43,480 --> 00:08:47,200 Speaker 1: this rotation. And I think that's a that's something I 162 00:08:47,200 --> 00:08:49,280 Speaker 1: think you always have to worry about in an environment 163 00:08:49,320 --> 00:08:53,080 Speaker 1: like this. You know, you think, okay, last year, earnings collapsed, 164 00:08:53,200 --> 00:08:57,000 Speaker 1: the economy collapsed, the stock market rose. What SMP rose, 165 00:08:58,559 --> 00:09:03,079 Speaker 1: I mean is this payback? Now? You know, are we 166 00:09:03,200 --> 00:09:07,800 Speaker 1: basically coming back to a rational analysis of the market now, 167 00:09:08,760 --> 00:09:13,000 Speaker 1: especially given what valuations have done. Um and and it's 168 00:09:13,040 --> 00:09:15,400 Speaker 1: the rotation, you know, those two ideas. I'm curious what 169 00:09:15,480 --> 00:09:19,440 Speaker 1: you think about. Have we pulled forward the returns from 170 00:09:19,480 --> 00:09:22,640 Speaker 1: from the earnings and economic rebound that we can expect 171 00:09:22,640 --> 00:09:25,240 Speaker 1: this year? Did we pull them forward to last year? 172 00:09:25,320 --> 00:09:28,640 Speaker 1: Kind of like we pulled forward the tax cut gains 173 00:09:28,880 --> 00:09:30,840 Speaker 1: to the previous year and it was a sort of 174 00:09:30,840 --> 00:09:34,960 Speaker 1: a sell the news event when when we actually got them. Um, 175 00:09:35,080 --> 00:09:36,920 Speaker 1: what you're thinking on that as far as the has 176 00:09:36,960 --> 00:09:40,000 Speaker 1: the rotation got ahead of itself and did the market 177 00:09:40,000 --> 00:09:42,120 Speaker 1: get ahead of itself last year? And sort of how 178 00:09:42,160 --> 00:09:43,720 Speaker 1: that relates to how we can think of the rest 179 00:09:43,720 --> 00:09:46,160 Speaker 1: of two thousand and twenty one. Well, I think it's 180 00:09:46,200 --> 00:09:49,640 Speaker 1: the nature of the market to overshoot in both directions, 181 00:09:49,920 --> 00:09:52,240 Speaker 1: and so certainly we saw a very strong year in 182 00:09:53,320 --> 00:09:56,320 Speaker 1: also in so if you stack those numbers for the 183 00:09:56,400 --> 00:10:01,120 Speaker 1: nastacks the nastacks, that's we're up almost When you look 184 00:10:01,120 --> 00:10:03,400 Speaker 1: at that, you have to think that, all right, this 185 00:10:03,480 --> 00:10:06,840 Speaker 1: is pretty frosty, especially when you're given a pandemic the 186 00:10:06,880 --> 00:10:10,240 Speaker 1: back half of that time frame, and the market probably 187 00:10:10,320 --> 00:10:12,440 Speaker 1: is due for a little bit of a settling period 188 00:10:12,480 --> 00:10:14,960 Speaker 1: and a pullback. Is the equity market too far ahead 189 00:10:14,960 --> 00:10:17,800 Speaker 1: of itself. That's hard to say. When you look at 190 00:10:18,240 --> 00:10:21,640 Speaker 1: zero percent interest on the short end longer term, that 191 00:10:21,760 --> 00:10:24,480 Speaker 1: is really supportive for businesses that should be supportive for 192 00:10:24,520 --> 00:10:27,760 Speaker 1: their growth longer term, and that's a positive. The debate 193 00:10:27,800 --> 00:10:32,400 Speaker 1: between growth and value I think really as another complexity 194 00:10:32,400 --> 00:10:34,920 Speaker 1: to the equation. I think the old monikers of growth 195 00:10:35,000 --> 00:10:39,160 Speaker 1: and value aren't necessarily accurate anymore, and so how the 196 00:10:39,200 --> 00:10:42,160 Speaker 1: indices divide themselves up to be a benchmark for growth 197 00:10:42,200 --> 00:10:44,600 Speaker 1: or a benchmark for value, I like to look through 198 00:10:44,640 --> 00:10:46,520 Speaker 1: and look into the details of that. A lot of 199 00:10:46,520 --> 00:10:48,200 Speaker 1: times if you're in the value besch, it's just because 200 00:10:48,200 --> 00:10:51,120 Speaker 1: you're paying a dividend. You might not be making any money. 201 00:10:51,160 --> 00:10:54,000 Speaker 1: So it's times as well. So it's a it's a 202 00:10:54,080 --> 00:10:57,800 Speaker 1: complicated and messy situation. We're fundamental bottoms up investors. We 203 00:10:57,920 --> 00:11:00,680 Speaker 1: like companies that generate cash flow. A lot of the 204 00:11:00,720 --> 00:11:02,640 Speaker 1: companies that are in those value indicties or once that 205 00:11:02,679 --> 00:11:05,880 Speaker 1: we wouldn't even consider it on. So when you look 206 00:11:05,880 --> 00:11:08,000 Speaker 1: at the market overall, you've got a couple of things 207 00:11:08,000 --> 00:11:10,920 Speaker 1: going on. Back to did we pull too much forward 208 00:11:10,920 --> 00:11:13,520 Speaker 1: in equities or are we too fast in this rotation. 209 00:11:14,200 --> 00:11:17,640 Speaker 1: We had a lot of emphasis on those safety play 210 00:11:17,720 --> 00:11:21,640 Speaker 1: growth names last year. I think diversifying the portfolio is 211 00:11:21,679 --> 00:11:25,160 Speaker 1: a natural progression of that, and so seeing money shift 212 00:11:25,240 --> 00:11:29,280 Speaker 1: into more cyclical names is actually healthy for the market, 213 00:11:29,360 --> 00:11:32,320 Speaker 1: and you're broadening out your base of what you're investing in. Right, 214 00:11:32,360 --> 00:11:35,640 Speaker 1: more business models are acceptable to investors, So I don't 215 00:11:35,640 --> 00:11:39,720 Speaker 1: think we're too far ahead in that diversification. Valuation is 216 00:11:39,720 --> 00:11:42,440 Speaker 1: a completely different story, and I think that is driven 217 00:11:42,480 --> 00:11:45,679 Speaker 1: by what are my alternatives? And when you have interest 218 00:11:45,760 --> 00:11:49,360 Speaker 1: rates still at very low levels, equities are a compelling 219 00:11:49,400 --> 00:11:52,200 Speaker 1: place to be. The issue I think we have in 220 00:11:52,240 --> 00:11:55,480 Speaker 1: today's market is you've had cross currents with the Tenure 221 00:11:55,520 --> 00:11:58,880 Speaker 1: eight going up to one point five acid allocators who 222 00:11:59,160 --> 00:12:01,160 Speaker 1: I don't really look in a stock by stock, but 223 00:12:01,280 --> 00:12:05,319 Speaker 1: overall asset classes, so fixed income or equities are now 224 00:12:05,360 --> 00:12:08,800 Speaker 1: looking at that one percent rates. Saying you're fixed income 225 00:12:08,840 --> 00:12:11,320 Speaker 1: actually is okay for me to move part of my 226 00:12:11,440 --> 00:12:15,040 Speaker 1: investments back into fixingcome to get that secure rate. And 227 00:12:15,040 --> 00:12:17,520 Speaker 1: they were almost all equity exposed as we went into 228 00:12:17,640 --> 00:12:19,679 Speaker 1: your end twenty twenty. Where else are they going to go? 229 00:12:19,960 --> 00:12:22,360 Speaker 1: So I think we're also seeing that shift in acid 230 00:12:22,400 --> 00:12:27,000 Speaker 1: allocation happen along with the diversification of the portfolios beyond 231 00:12:27,200 --> 00:12:30,480 Speaker 1: just the growth tech names. You get those two together, 232 00:12:30,640 --> 00:12:32,720 Speaker 1: and I think that's what's crossing all of this noise 233 00:12:32,760 --> 00:12:43,880 Speaker 1: in the market. We talked about this divergence that we've 234 00:12:43,920 --> 00:12:46,440 Speaker 1: seen amidst this rotation, and I'm just looking at some 235 00:12:46,440 --> 00:12:47,920 Speaker 1: of the numbers from the past month or so, just 236 00:12:47,960 --> 00:12:53,040 Speaker 1: looking at sectors in the SMP energy Meanwhile, consumer discretionaries 237 00:12:53,080 --> 00:12:56,760 Speaker 1: down close to ten percent, financials up six percent. I mean, massive, 238 00:12:56,920 --> 00:13:00,360 Speaker 1: massive gaps between different industries, and then you so have 239 00:13:00,800 --> 00:13:03,920 Speaker 1: pretty wide gaps within equities within the industries. And I 240 00:13:03,960 --> 00:13:06,120 Speaker 1: know we hear this over and over again, and you 241 00:13:06,160 --> 00:13:09,720 Speaker 1: guys are fundamental bottoms up stock pickers, but we've heard 242 00:13:09,880 --> 00:13:12,040 Speaker 1: every year after year after year that this is going 243 00:13:12,080 --> 00:13:13,680 Speaker 1: to be the year of the stock picker. And Bank 244 00:13:13,679 --> 00:13:16,240 Speaker 1: of America put out a report the month of February 245 00:13:16,360 --> 00:13:19,280 Speaker 1: was actually the best month for large cup active managers, 246 00:13:19,320 --> 00:13:22,520 Speaker 1: active stock pickers since two thousand and seven. So would 247 00:13:22,559 --> 00:13:25,760 Speaker 1: you say that what the shows is possibly the time 248 00:13:25,840 --> 00:13:28,560 Speaker 1: is actually here and you can show the skill that 249 00:13:28,600 --> 00:13:33,040 Speaker 1: you have. I definitely think that's the case, but you're right, 250 00:13:33,120 --> 00:13:36,440 Speaker 1: we're active stock pickers. What else are we going to say? 251 00:13:38,240 --> 00:13:42,480 Speaker 1: Some honesty? Finally, we'll be honest. We do have we 252 00:13:42,559 --> 00:13:44,600 Speaker 1: believe that it's why we do what we do. But 253 00:13:44,679 --> 00:13:47,000 Speaker 1: I do think that you're gonna see some of that 254 00:13:47,040 --> 00:13:49,560 Speaker 1: come through because there's so much uncertainty in the market. 255 00:13:49,720 --> 00:13:51,720 Speaker 1: And I do think if you go forward a couple 256 00:13:51,720 --> 00:13:53,760 Speaker 1: of months, I can get a lot of economic noise. 257 00:13:54,160 --> 00:13:56,320 Speaker 1: You know, you're over your comparisons aren't going to make 258 00:13:56,360 --> 00:13:59,480 Speaker 1: any sense because a year ago things were nowhere, We 259 00:13:59,679 --> 00:14:03,000 Speaker 1: close down the economy, we put everything on pause. And 260 00:14:03,080 --> 00:14:06,959 Speaker 1: so I think that is somewhat what JAIRMYN. Powell was 261 00:14:07,000 --> 00:14:09,680 Speaker 1: alluding to on Thursday. He's saying that, you know, he's 262 00:14:09,720 --> 00:14:13,280 Speaker 1: not going to be distressed by some really wacky numbers 263 00:14:13,320 --> 00:14:16,559 Speaker 1: because that may not necessarily be the true picture as 264 00:14:16,600 --> 00:14:19,640 Speaker 1: you roll forward into what's happening. And I think that's 265 00:14:19,640 --> 00:14:22,840 Speaker 1: where investors need to remember, you're over your data and 266 00:14:22,920 --> 00:14:26,000 Speaker 1: some of these top headline numbers. You really need to 267 00:14:26,040 --> 00:14:29,000 Speaker 1: look into the componentry of it, because those top headline 268 00:14:29,040 --> 00:14:33,560 Speaker 1: numbers may not be revealing the true picture of things left. 269 00:14:33,560 --> 00:14:36,120 Speaker 1: And by honesty, I mean for that phrase of the 270 00:14:36,160 --> 00:14:37,640 Speaker 1: year of the stock picker. I think it's been the 271 00:14:37,720 --> 00:14:40,000 Speaker 1: year of the stock picker every year I've been doing 272 00:14:40,040 --> 00:14:42,280 Speaker 1: to this, which is longer than I care to remember. 273 00:14:42,320 --> 00:14:44,720 Speaker 1: I will tell you I think the year after John 274 00:14:44,720 --> 00:14:47,440 Speaker 1: Bogel came out with that first index fund, someone was like, 275 00:14:47,720 --> 00:14:49,480 Speaker 1: that's good, but this is the year of the stock 276 00:14:49,480 --> 00:14:52,720 Speaker 1: picker this year. But I want to go back to 277 00:14:53,000 --> 00:14:54,640 Speaker 1: what you guys are looking at right now, because you 278 00:14:54,640 --> 00:14:57,320 Speaker 1: mentioned earlier on in the show that when you look 279 00:14:57,360 --> 00:15:00,280 Speaker 1: at some broad value indices they include some com means 280 00:15:00,320 --> 00:15:03,160 Speaker 1: that you guys wouldn't even be interested in investing in. 281 00:15:03,560 --> 00:15:06,440 Speaker 1: And right now it seems as though we are seeing 282 00:15:07,080 --> 00:15:11,640 Speaker 1: energy rise at least one percent every single day. Financials 283 00:15:11,640 --> 00:15:13,760 Speaker 1: also getting a boost as we see yields rise as well. 284 00:15:14,000 --> 00:15:16,400 Speaker 1: Would you say, though, that it's not as easy as 285 00:15:16,440 --> 00:15:19,160 Speaker 1: just saying, all right, I want to buy energy companies 286 00:15:19,200 --> 00:15:21,320 Speaker 1: at large, because of course, I mean, energy is a 287 00:15:21,320 --> 00:15:24,160 Speaker 1: sector that that's had a lot of hardship of late. 288 00:15:25,440 --> 00:15:27,920 Speaker 1: Energy is a boom or bust sector. You either love 289 00:15:28,200 --> 00:15:30,440 Speaker 1: you hate it, and it really just depends on the day. 290 00:15:30,960 --> 00:15:34,480 Speaker 1: And so it's it's tough to be out of energy 291 00:15:34,520 --> 00:15:39,120 Speaker 1: when it's working because it works well, aggressively well, and 292 00:15:39,360 --> 00:15:41,840 Speaker 1: when it's terrible, it's really terrible. You don't want to 293 00:15:41,840 --> 00:15:44,920 Speaker 1: be anywhere near it. So in the market today, what 294 00:15:45,080 --> 00:15:48,080 Speaker 1: you're seeing is a lot of control going on in energy. 295 00:15:48,280 --> 00:15:51,320 Speaker 1: The OPAC announcement that came out on Thursday is interesting, right, 296 00:15:51,360 --> 00:15:53,280 Speaker 1: because it's telling you that there is still going to 297 00:15:53,320 --> 00:15:56,320 Speaker 1: be suppression of supply, there's going to be control in 298 00:15:56,400 --> 00:15:59,560 Speaker 1: that supply demand balanced and so you're seeing a lot 299 00:15:59,600 --> 00:16:02,160 Speaker 1: of prey support and I think that that is what 300 00:16:02,280 --> 00:16:05,360 Speaker 1: has been encouraging the market. At the same time, even 301 00:16:05,440 --> 00:16:08,840 Speaker 1: before this came into play with with Thursday's decision, you 302 00:16:08,920 --> 00:16:12,480 Speaker 1: saw the market recognizing that there's going to be future growth. 303 00:16:12,560 --> 00:16:15,520 Speaker 1: Therefore we're going to have increased demand for energy, and 304 00:16:15,560 --> 00:16:18,880 Speaker 1: that baseline price of oil has been rising, so all 305 00:16:18,920 --> 00:16:20,720 Speaker 1: of those you know, I think in this case, I 306 00:16:20,800 --> 00:16:22,920 Speaker 1: mean the swing and energy which is working in the 307 00:16:23,000 --> 00:16:25,560 Speaker 1: right direction, and as an investor, you want to have 308 00:16:25,640 --> 00:16:28,880 Speaker 1: some exposure to that. At the same time, always in 309 00:16:28,920 --> 00:16:30,800 Speaker 1: the back of your mind, when energy is working, you 310 00:16:30,800 --> 00:16:33,400 Speaker 1: have to be thinking about when does this stop, because 311 00:16:33,400 --> 00:16:36,120 Speaker 1: it will quickly reverse and go the other way right, 312 00:16:36,560 --> 00:16:38,960 Speaker 1: and perhaps if it goes too high, it becomes the 313 00:16:39,000 --> 00:16:43,800 Speaker 1: headwinds your your consumer and retail UH stocks now. And 314 00:16:43,840 --> 00:16:46,480 Speaker 1: I wonder how I mean because we talk about a 315 00:16:46,560 --> 00:16:49,560 Speaker 1: dramatic move and will UH not as dramatic as last 316 00:16:49,600 --> 00:16:51,200 Speaker 1: year when I went negative. But you know, I don't 317 00:16:51,200 --> 00:16:54,040 Speaker 1: know how you compute the year over year change from 318 00:16:54,040 --> 00:16:55,800 Speaker 1: a negative number. I'll have to. I'll get one of 319 00:16:55,800 --> 00:16:58,360 Speaker 1: my daughters who's starting calculus to figure that out for me. 320 00:16:58,440 --> 00:17:03,080 Speaker 1: But but brings up the whole notion of commodity inflation. 321 00:17:03,160 --> 00:17:07,879 Speaker 1: I mean oils front center. But we've seen lumber go nuts, 322 00:17:08,320 --> 00:17:13,240 Speaker 1: you know, the the industrial metals, um that all sort 323 00:17:13,240 --> 00:17:17,720 Speaker 1: of input pricing to a lot of stocks out there. Um, 324 00:17:17,760 --> 00:17:20,240 Speaker 1: how do you separate the good inflation from the bed 325 00:17:20,560 --> 00:17:24,400 Speaker 1: UH in an environment like this? I mean could could? Yeah? 326 00:17:24,440 --> 00:17:26,480 Speaker 1: The you know, the yields are up because of the 327 00:17:26,480 --> 00:17:31,000 Speaker 1: the outlook for growth, Um, but could inflation bite some sucktors? 328 00:17:31,000 --> 00:17:33,880 Speaker 1: Do you think this year? Well? Is it short term 329 00:17:33,880 --> 00:17:36,679 Speaker 1: inflation or long term inflation? Because I think that this 330 00:17:36,760 --> 00:17:38,960 Speaker 1: year that's what you have to worry about. We've certainly 331 00:17:38,960 --> 00:17:42,240 Speaker 1: got some supply constraints, and I think those supply lines 332 00:17:42,280 --> 00:17:45,200 Speaker 1: are what is going to feel some what will feel pressure. 333 00:17:45,800 --> 00:17:50,240 Speaker 1: We have issues where again you're comparable is a pandemic. 334 00:17:50,359 --> 00:17:53,760 Speaker 1: People actually shut down. We asked everyone to go on pause. 335 00:17:53,880 --> 00:17:57,120 Speaker 1: Inventory lines have been depleted, and so if people ramp 336 00:17:57,160 --> 00:18:00,119 Speaker 1: back up, these businesses come back to life, they do 337 00:18:00,520 --> 00:18:04,120 Speaker 1: need raw materials being pulled through the pipeline, and they're 338 00:18:04,160 --> 00:18:07,240 Speaker 1: not always readily available. We're also seeing a boom in 339 00:18:07,280 --> 00:18:10,639 Speaker 1: certain industries at lumber, look at housing, so you know 340 00:18:10,640 --> 00:18:13,399 Speaker 1: we've had this great boom and housing suddenly where everyone 341 00:18:13,440 --> 00:18:15,560 Speaker 1: wants to find a house, we don't have enough houses, 342 00:18:15,840 --> 00:18:19,919 Speaker 1: and so they're working on supply. That's an issue for lumber. 343 00:18:20,480 --> 00:18:24,159 Speaker 1: Short term is that supply long going to continue to 344 00:18:24,200 --> 00:18:26,720 Speaker 1: be constrained, probably for a couple of months. But I 345 00:18:26,760 --> 00:18:30,119 Speaker 1: think longer term, I actually think you have to watch 346 00:18:30,160 --> 00:18:33,680 Speaker 1: how those supply channels come back online. If they're functioning 347 00:18:33,760 --> 00:18:37,600 Speaker 1: normally longer term, you shouldn't see that kind of constraint, 348 00:18:37,680 --> 00:18:41,080 Speaker 1: and therefore your short term inflation actually can ease out 349 00:18:41,160 --> 00:18:44,960 Speaker 1: into consistent long term growth. You know, I was really 350 00:18:44,960 --> 00:18:48,439 Speaker 1: curious about what the terminal would say about that percent 351 00:18:48,520 --> 00:18:51,200 Speaker 1: change in oil MIC. So if you pull up a 352 00:18:51,280 --> 00:18:52,920 Speaker 1: chart on the terminal, there's a way that you could 353 00:18:52,920 --> 00:18:55,440 Speaker 1: annotate the chart and you basically just draw a line 354 00:18:55,480 --> 00:18:58,040 Speaker 1: from one point to an accident will tell you either 355 00:18:58,119 --> 00:19:01,520 Speaker 1: their percent gain or the percent. It just says gain 356 00:19:01,600 --> 00:19:06,160 Speaker 1: in parentheses numbers, So the Bloomberg terminal won't even calculate 357 00:19:06,200 --> 00:19:12,280 Speaker 1: it for you. I guess, yeah, exactly exactly. But put 358 00:19:12,320 --> 00:19:14,560 Speaker 1: this all together for us, then where do you guys 359 00:19:14,640 --> 00:19:19,560 Speaker 1: actually see opportunity then? Right now, well back to the 360 00:19:19,600 --> 00:19:24,680 Speaker 1: great lineup. It's a stock pickers market. Go back to fundamentals. 361 00:19:25,040 --> 00:19:29,040 Speaker 1: We are looking for a big reopening trade, and I'm 362 00:19:29,040 --> 00:19:32,080 Speaker 1: looking for opportunity in names that are going to benefit 363 00:19:32,160 --> 00:19:35,760 Speaker 1: from that. It's interesting because even anecdotally, you can look 364 00:19:35,800 --> 00:19:39,440 Speaker 1: across and I'm sure everyone has friends who have been 365 00:19:39,520 --> 00:19:43,479 Speaker 1: cooped up this entire time and are itching to go out. Right. 366 00:19:44,760 --> 00:19:47,800 Speaker 1: I'm based in Chicago. Chicago restaurants have opened up there 367 00:19:47,800 --> 00:19:51,119 Speaker 1: at twenty percent capacity. But you can go out and 368 00:19:51,160 --> 00:19:54,040 Speaker 1: go to a restaurant. You can even sit outside and 369 00:19:54,080 --> 00:19:56,240 Speaker 1: go to a restaurant. In mind, you we're in Chicago 370 00:19:56,280 --> 00:19:59,199 Speaker 1: and it's the winter, so people are still willing to 371 00:19:59,280 --> 00:20:02,040 Speaker 1: do that. If you want to go out, you can't 372 00:20:02,040 --> 00:20:04,919 Speaker 1: get a reservation. Things are booking up and maybe you 373 00:20:04,920 --> 00:20:06,560 Speaker 1: can eat it five pm or you can eat at 374 00:20:06,600 --> 00:20:09,200 Speaker 1: nine pm, but there's nothing in between. It's the same 375 00:20:09,240 --> 00:20:12,320 Speaker 1: in New York. People want to get out and I 376 00:20:12,920 --> 00:20:16,159 Speaker 1: think that shows you there's this pent up demand and 377 00:20:16,280 --> 00:20:19,440 Speaker 1: back to the fteen hundred dollar check that's going in 378 00:20:19,560 --> 00:20:23,400 Speaker 1: consumers pockets. Consumers have a very strong balance sheet right now, 379 00:20:23,920 --> 00:20:26,920 Speaker 1: and so when you look at it, they have stored 380 00:20:26,960 --> 00:20:29,520 Speaker 1: that up, saving three through at all time highs. They've 381 00:20:29,560 --> 00:20:33,440 Speaker 1: been very good about managing to get through this pandemic. 382 00:20:33,560 --> 00:20:35,679 Speaker 1: And I think once things open up, I think you 383 00:20:35,720 --> 00:20:39,080 Speaker 1: are going to see a big flurry of consumer activity 384 00:20:39,640 --> 00:20:42,440 Speaker 1: and with that, I think you get opportunity and looking 385 00:20:42,480 --> 00:20:45,359 Speaker 1: for the company's name services especially that are going to 386 00:20:45,480 --> 00:20:49,080 Speaker 1: benefit from that. Yeah, the personal savings rate was just 387 00:20:49,160 --> 00:20:52,320 Speaker 1: through the roof there for for many months. I mean, it's, uh, 388 00:20:52,480 --> 00:20:56,000 Speaker 1: it's a fascinating set up, but you know it's not 389 00:20:56,760 --> 00:20:59,639 Speaker 1: obviously I think everyone is still bush. Maybe not everyone, 390 00:20:59,680 --> 00:21:02,360 Speaker 1: but um, it makes a lot of sense to still 391 00:21:02,359 --> 00:21:05,120 Speaker 1: be bullish on that reopening trade, I think. But then 392 00:21:05,160 --> 00:21:07,320 Speaker 1: you look at that stay at home trade and there's 393 00:21:07,359 --> 00:21:09,680 Speaker 1: some of the just I think over the long term, 394 00:21:09,920 --> 00:21:14,000 Speaker 1: really some of the most intriguing stocks. Uh, you know 395 00:21:14,040 --> 00:21:17,280 Speaker 1: around Facebook's not going anywhere, Google is not going anywhere, 396 00:21:17,400 --> 00:21:21,320 Speaker 1: Netflix Zoom, Uh, you know, it's not going anywhere. When 397 00:21:21,359 --> 00:21:23,280 Speaker 1: do you sort of know when to go, when to 398 00:21:23,520 --> 00:21:27,560 Speaker 1: revert back to the darlings of of the you know, 399 00:21:27,840 --> 00:21:30,320 Speaker 1: former era of the of the bullmarket. You know what, 400 00:21:30,320 --> 00:21:32,840 Speaker 1: what would you sort of look forward to to ring 401 00:21:32,880 --> 00:21:35,560 Speaker 1: that bell and say, okay, everyone switched partners again and 402 00:21:35,600 --> 00:21:38,880 Speaker 1: go back to the to the big tech companies. Well, 403 00:21:38,880 --> 00:21:40,920 Speaker 1: the market is always looking forward, and so I think 404 00:21:40,960 --> 00:21:44,919 Speaker 1: once you get into the true full on belief that 405 00:21:44,960 --> 00:21:48,959 Speaker 1: the reopening is coming and it's here, as we're starting 406 00:21:49,000 --> 00:21:51,960 Speaker 1: to see that, then I think once again investors are 407 00:21:51,960 --> 00:21:54,480 Speaker 1: looking for the next opportunity and where we'll growth be 408 00:21:54,600 --> 00:21:58,119 Speaker 1: priced in and they're trying to even themselves out. And 409 00:21:58,160 --> 00:22:01,600 Speaker 1: at that point, and we always this flow of money 410 00:22:01,840 --> 00:22:04,960 Speaker 1: chasing areas that they think are going to are going 411 00:22:04,960 --> 00:22:06,879 Speaker 1: to work in the future, but might right now be 412 00:22:07,000 --> 00:22:10,119 Speaker 1: under invested in. And so you're gonna see that swing 413 00:22:10,160 --> 00:22:14,480 Speaker 1: back because as we go towards the reopening, everyone's looking 414 00:22:14,520 --> 00:22:17,120 Speaker 1: at the cyclicals. As we get to the reopening, people 415 00:22:17,160 --> 00:22:19,600 Speaker 1: are going to go back to growth at a reasonable price. 416 00:22:20,240 --> 00:22:22,600 Speaker 1: What's going to do well. I think the pandemic was 417 00:22:22,680 --> 00:22:25,919 Speaker 1: most interesting because it took a lot of those market 418 00:22:26,000 --> 00:22:30,000 Speaker 1: darlines and stocks that weren't necessarily market darlines but might 419 00:22:30,040 --> 00:22:32,880 Speaker 1: have been in the tech space in some way and 420 00:22:32,960 --> 00:22:36,680 Speaker 1: push them to the forefront because the pandemic forced this 421 00:22:36,960 --> 00:22:43,359 Speaker 1: adoption of technology and means of operating that to to 422 00:22:43,440 --> 00:22:45,879 Speaker 1: a new level where the uptake was much higher than 423 00:22:45,920 --> 00:22:47,920 Speaker 1: it would have been otherwise. So a lot of these 424 00:22:47,960 --> 00:22:51,879 Speaker 1: technologies got pulled into every household that might not have 425 00:22:51,920 --> 00:22:56,240 Speaker 1: happened without the pandemic circumstance. For another decade, my grandparents 426 00:22:56,240 --> 00:22:59,080 Speaker 1: are using Amazon to shop. They had no idea what 427 00:22:59,200 --> 00:23:02,000 Speaker 1: that was year ago, and now they think they're the 428 00:23:02,000 --> 00:23:07,040 Speaker 1: coolest thing ever. It's interesting to see that because it 429 00:23:07,119 --> 00:23:09,879 Speaker 1: did allow a lot of those companies to leak frog 430 00:23:10,040 --> 00:23:15,600 Speaker 1: forward and get traction in society and actually become part 431 00:23:15,640 --> 00:23:19,879 Speaker 1: of people's normal behaviors, so that they're now entrenched. And 432 00:23:19,920 --> 00:23:23,119 Speaker 1: I think we'll see, of course, that's being rewarded as 433 00:23:23,240 --> 00:23:26,240 Speaker 1: the world shifts back to normalcy, and you're gonna have 434 00:23:26,359 --> 00:23:29,120 Speaker 1: some new players that have moved into the normal day 435 00:23:29,119 --> 00:23:48,040 Speaker 1: to day Mike, I am. I'm happy to say I 436 00:23:48,119 --> 00:23:50,879 Speaker 1: know you are not happy to hear me say that. 437 00:23:51,000 --> 00:23:53,679 Speaker 1: I think it's that time of the show stand clearer 438 00:23:53,680 --> 00:23:57,120 Speaker 1: of the craziest things we saw in markets this week? 439 00:23:57,920 --> 00:23:59,840 Speaker 1: All right, all right, well it is that time. Let's 440 00:23:59,840 --> 00:24:02,400 Speaker 1: do the crazy things before we get to my crazy nickname, 441 00:24:02,400 --> 00:24:07,959 Speaker 1: I'm I'm procrastinating up. You won't get away without sharing 442 00:24:08,000 --> 00:24:10,000 Speaker 1: it today. Well, I'll kick it off on the crazy 443 00:24:10,040 --> 00:24:14,399 Speaker 1: things here. Um, this crazy thing combines two of my 444 00:24:14,440 --> 00:24:16,760 Speaker 1: favorite things. For one thing. Sure, I'm starting to think 445 00:24:17,400 --> 00:24:20,399 Speaker 1: that people are just out there doing things in hopes 446 00:24:20,440 --> 00:24:24,000 Speaker 1: of getting featured in the crazy Things segment. I might 447 00:24:24,040 --> 00:24:27,000 Speaker 1: be a little narcissistic on my part, but I'm sure 448 00:24:27,040 --> 00:24:28,919 Speaker 1: there's some truth to that. If you can come up 449 00:24:28,960 --> 00:24:32,000 Speaker 1: with a better explanation for non non fungible tokens that 450 00:24:32,280 --> 00:24:34,840 Speaker 1: I'll hear it. But until I hear otherwise, I think 451 00:24:34,880 --> 00:24:37,040 Speaker 1: they are just trying to get featured in this segment. 452 00:24:37,520 --> 00:24:39,720 Speaker 1: So this one, this is a story courtesy is CBS 453 00:24:39,800 --> 00:24:42,479 Speaker 1: news dot com, and it combines two of my favorite 454 00:24:42,480 --> 00:24:46,760 Speaker 1: crazy things uh n f T non fungible tokens and 455 00:24:47,080 --> 00:24:51,360 Speaker 1: ridiculously overpriced modern art. Um And one of my favorite 456 00:24:51,520 --> 00:24:54,119 Speaker 1: modern artist is this guy Banksy I don't know if 457 00:24:54,119 --> 00:24:56,960 Speaker 1: you're familiar with him. He's most famous him on the 458 00:24:56,960 --> 00:24:59,080 Speaker 1: show before Yeah, I've got it. We we get We 459 00:24:59,080 --> 00:25:01,000 Speaker 1: get to him a lot. He's was famous for selling 460 00:25:01,040 --> 00:25:04,560 Speaker 1: the painting that self shredded the minute the auctioneer hit 461 00:25:04,720 --> 00:25:07,480 Speaker 1: hit the gavel down, which is one of my all times, 462 00:25:08,680 --> 00:25:12,080 Speaker 1: was of all time, would have actually ben if they 463 00:25:12,160 --> 00:25:14,479 Speaker 1: had a camera facing how he could have done that better? Right, 464 00:25:14,480 --> 00:25:17,159 Speaker 1: if he had a camera in the frame facing the 465 00:25:17,200 --> 00:25:22,520 Speaker 1: audience to watch everyone. My favorite part was I forgot 466 00:25:22,520 --> 00:25:24,480 Speaker 1: what auction house. It was Christie's or some other bees 467 00:25:24,480 --> 00:25:26,560 Speaker 1: are one of them. And they said to the person, look, 468 00:25:26,640 --> 00:25:29,199 Speaker 1: will refund you your money, and the person was like, 469 00:25:29,240 --> 00:25:32,000 Speaker 1: no way, this thing's worth even more now that it's shredded. 470 00:25:32,520 --> 00:25:36,720 Speaker 1: So that that's amazing that he was getting into. So 471 00:25:37,520 --> 00:25:43,560 Speaker 1: enter into this story. A blockchain company known as Injective Protocol. 472 00:25:44,400 --> 00:25:46,800 Speaker 1: They bought not a back to the original a print 473 00:25:46,880 --> 00:25:53,000 Speaker 1: assigned print for dollars and they immediately burned it on Twitter. 474 00:25:54,040 --> 00:25:56,880 Speaker 1: And the reason they did that is because they had 475 00:25:56,920 --> 00:26:00,280 Speaker 1: made a digital replication of it, which they had turned 476 00:26:00,400 --> 00:26:05,720 Speaker 1: into a non fungible token on the blockchain, presumably making 477 00:26:05,760 --> 00:26:08,879 Speaker 1: it worth much more than the nine thousand they paid for. 478 00:26:09,400 --> 00:26:11,720 Speaker 1: What what multiple do you get if you turn a 479 00:26:11,800 --> 00:26:17,080 Speaker 1: bank see photograph for art piece into an n f T. 480 00:26:17,680 --> 00:26:20,240 Speaker 1: We need no offense to use, Susan, but we need 481 00:26:20,440 --> 00:26:22,480 Speaker 1: an n f T picker to to to come on 482 00:26:22,520 --> 00:26:25,560 Speaker 1: the trap. Yea to that one. That makes no sense 483 00:26:25,600 --> 00:26:27,880 Speaker 1: to me at all. That's pretty good. But I will 484 00:26:27,920 --> 00:26:30,040 Speaker 1: say this, I would not mess with Banksy. You know, 485 00:26:30,240 --> 00:26:32,960 Speaker 1: when he hears about this, his next you know, thing 486 00:26:33,000 --> 00:26:35,040 Speaker 1: might be to burn down the blockchain as as his 487 00:26:35,119 --> 00:26:38,760 Speaker 1: next as his next feat. So I h that's that's 488 00:26:38,840 --> 00:26:42,080 Speaker 1: my craziest thing, Susan, you got anything for us? Well, 489 00:26:42,160 --> 00:26:45,560 Speaker 1: my after that? What can compete with that? But that really, 490 00:26:45,880 --> 00:26:47,920 Speaker 1: I think that really takes the cake. I did hear 491 00:26:48,040 --> 00:26:50,000 Speaker 1: I got a couple of things, so you know, there 492 00:26:50,080 --> 00:26:52,359 Speaker 1: was some price action and racket mortgage that I thought 493 00:26:52,400 --> 00:26:55,600 Speaker 1: was really interesting. When you see the reddit crowd getting 494 00:26:55,720 --> 00:26:59,000 Speaker 1: up on when you see the reddit crowd getting up 495 00:26:59,040 --> 00:27:03,040 Speaker 1: on the small cap names like game Stop, where you 496 00:27:03,080 --> 00:27:05,720 Speaker 1: can get those meadows all grouping together to make a way, 497 00:27:05,920 --> 00:27:08,120 Speaker 1: then makes sense to me. But when you get into 498 00:27:08,119 --> 00:27:10,880 Speaker 1: something like rocket mortgage, where the market cap is much 499 00:27:10,960 --> 00:27:14,280 Speaker 1: much higher and yet you see some wave happened that 500 00:27:14,600 --> 00:27:17,399 Speaker 1: shoots the price up and had causes this dislocation and 501 00:27:17,480 --> 00:27:20,520 Speaker 1: the shares. That was really surprising to me, and so 502 00:27:20,800 --> 00:27:24,680 Speaker 1: I think it's a warning that the mechanism is out there. 503 00:27:24,920 --> 00:27:28,080 Speaker 1: You can see volatility, short term volatility in a lot 504 00:27:28,119 --> 00:27:30,760 Speaker 1: of places that you didn't expect. So keep that in 505 00:27:30,800 --> 00:27:32,360 Speaker 1: the back of your mind when you start to see 506 00:27:32,400 --> 00:27:36,800 Speaker 1: some really irrational price movement. And then given how much 507 00:27:36,840 --> 00:27:39,040 Speaker 1: those guys like the rocket emoji, I think that that 508 00:27:39,119 --> 00:27:42,080 Speaker 1: was inevitable. I mean that checking myself for not seeing 509 00:27:42,080 --> 00:27:44,680 Speaker 1: that one coming. Yeah, I I just looked a call 510 00:27:44,800 --> 00:27:49,040 Speaker 1: volume and rocket, So more than a million, more than 511 00:27:49,119 --> 00:27:51,720 Speaker 1: one point one million call options traded that day that 512 00:27:51,760 --> 00:27:55,240 Speaker 1: we thought the spike before that, the previous high was 513 00:27:55,480 --> 00:28:01,960 Speaker 1: not even three hundred seventy five thousand. So really really 514 00:28:04,200 --> 00:28:06,760 Speaker 1: one other thing to throw in front of you, which 515 00:28:06,840 --> 00:28:09,280 Speaker 1: is uh an e t F that was launched that 516 00:28:09,320 --> 00:28:13,280 Speaker 1: I heard about called the Buzz e t F, which 517 00:28:13,320 --> 00:28:16,679 Speaker 1: I think is is great, but it it really shows 518 00:28:16,680 --> 00:28:21,520 Speaker 1: you how important social media has become. And so here's 519 00:28:21,520 --> 00:28:24,000 Speaker 1: this e t F that is going to track the 520 00:28:24,040 --> 00:28:28,040 Speaker 1: performance of stocks as the stacks that are most mentioned 521 00:28:28,440 --> 00:28:31,320 Speaker 1: in social media right on the web. And and so 522 00:28:31,560 --> 00:28:35,679 Speaker 1: I think that basically says it all about where Americans 523 00:28:35,720 --> 00:28:40,120 Speaker 1: are spending their time and a different way to really, 524 00:28:40,440 --> 00:28:43,440 Speaker 1: you know, take a creative way to take a look 525 00:28:43,480 --> 00:28:46,960 Speaker 1: and think about tracking consumer preferences. That's pretty good. Yeah, 526 00:28:47,360 --> 00:28:52,040 Speaker 1: the famous Davy Day trader, Dave Portnoy, who would have 527 00:28:52,040 --> 00:28:56,880 Speaker 1: thought he'd be the most influential exactly who would have thought? 528 00:28:57,080 --> 00:29:01,280 Speaker 1: And pushing e ts named buzz right and and and 529 00:29:01,320 --> 00:29:07,840 Speaker 1: they've probably gone with pizza or that's pretty good. I 530 00:29:07,880 --> 00:29:09,640 Speaker 1: like both of those. Those are good. Those are good. 531 00:29:10,160 --> 00:29:11,840 Speaker 1: How about you? Sorry, what do you You got some 532 00:29:11,840 --> 00:29:14,440 Speaker 1: stiff competition this week? I do, I do. I'm gonna 533 00:29:14,440 --> 00:29:17,360 Speaker 1: bring it back to stack world because really, at the 534 00:29:17,400 --> 00:29:19,640 Speaker 1: midst of the cell up we've been seeing SPACs have 535 00:29:19,960 --> 00:29:21,959 Speaker 1: really been tied up in it. If you look at 536 00:29:21,960 --> 00:29:25,560 Speaker 1: a spack index, it's down about now from the high. 537 00:29:25,600 --> 00:29:27,920 Speaker 1: But what's crazy to me were some numbers that were 538 00:29:27,920 --> 00:29:30,680 Speaker 1: put out by Golden Sacks and I'll just read them 539 00:29:30,720 --> 00:29:34,000 Speaker 1: to you. So in the first two months of this year, 540 00:29:34,320 --> 00:29:37,720 Speaker 1: a hundred seventy five SPACs sold I p o s 541 00:29:37,760 --> 00:29:41,920 Speaker 1: are roughly five deals per trading day. Well now in February. 542 00:29:42,240 --> 00:29:46,680 Speaker 1: So just last month alone, nineties SPACs race thirty two 543 00:29:46,680 --> 00:29:49,360 Speaker 1: billion dollars, which was a monthly record, and should the 544 00:29:49,400 --> 00:29:53,600 Speaker 1: pace of issue ones persist, this year's offerings will surpass 545 00:29:53,720 --> 00:29:57,240 Speaker 1: the full year of before the end of this month 546 00:29:57,720 --> 00:30:01,440 Speaker 1: and was a obvious a record here for SPACs. So 547 00:30:01,480 --> 00:30:04,280 Speaker 1: the fact that we are going to pass that within 548 00:30:04,360 --> 00:30:10,120 Speaker 1: the first three months is pretty crazy. What's your take 549 00:30:10,160 --> 00:30:17,480 Speaker 1: on specs Susan Well recently in recent days, I think 550 00:30:17,800 --> 00:30:20,160 Speaker 1: it gives you a good indicator of how much froth 551 00:30:20,360 --> 00:30:24,000 Speaker 1: was in that market, and it does seem to be 552 00:30:24,040 --> 00:30:27,800 Speaker 1: the new craze. From a company's perspective, it actually is 553 00:30:27,840 --> 00:30:32,840 Speaker 1: a nice convenient way to backdoor into being publicly traded. 554 00:30:33,280 --> 00:30:36,840 Speaker 1: But from an investor's perspective, you're taking a huge bet 555 00:30:37,080 --> 00:30:39,280 Speaker 1: if you're moving into us back where you did. It's 556 00:30:39,320 --> 00:30:41,880 Speaker 1: basically just air. I'm giving you a blake check. Go 557 00:30:42,080 --> 00:30:45,000 Speaker 1: for whatever you want. You don't know what they're gonna buy, 558 00:30:45,040 --> 00:30:47,720 Speaker 1: you don't know which direction it's going in, and you 559 00:30:47,800 --> 00:30:52,200 Speaker 1: hope that they end up buying something that is equivalent 560 00:30:52,280 --> 00:30:55,200 Speaker 1: with the strength of the management team or the leadership 561 00:30:55,240 --> 00:30:58,120 Speaker 1: that they have around this back they don't have to 562 00:30:58,720 --> 00:31:00,960 Speaker 1: and I think we've seen examp fools aware they could 563 00:31:01,120 --> 00:31:04,680 Speaker 1: go into something completely different than you expect because it's 564 00:31:04,720 --> 00:31:08,640 Speaker 1: not going to behoove them to give you your money back. Yeah, 565 00:31:08,920 --> 00:31:11,240 Speaker 1: if that portnoy guy doesn't start a spack is a 566 00:31:11,280 --> 00:31:17,720 Speaker 1: big missed opportunity here. It's like pizza, pizza and meme acquisition. Uh, 567 00:31:18,000 --> 00:31:20,520 Speaker 1: the stool stack. I don't know if that sounds so great? 568 00:31:20,560 --> 00:31:22,960 Speaker 1: But what's Sarah with that said? I think that's it 569 00:31:23,160 --> 00:31:26,800 Speaker 1: for today. I think that's everything we have to talk. No, no, no, 570 00:31:28,880 --> 00:31:32,880 Speaker 1: I don't hasn't Susan's holding you to it. It's not 571 00:31:32,920 --> 00:31:38,640 Speaker 1: me alright, alright, well drumroll please, I guess if we'll 572 00:31:38,640 --> 00:31:47,960 Speaker 1: have the producer out of drum all? All right? So, 573 00:31:48,120 --> 00:31:51,840 Speaker 1: as I hated this, this nickname was like my more 574 00:31:51,880 --> 00:31:54,440 Speaker 1: flattering nickname was granted to me on the basketball court, 575 00:31:54,480 --> 00:31:56,760 Speaker 1: and so I went, I went, I have to give 576 00:31:56,760 --> 00:31:59,280 Speaker 1: you a long backstory for this, I'm afraid, but I 577 00:31:59,320 --> 00:32:02,760 Speaker 1: think the six sixty people that raided the show to 578 00:32:02,880 --> 00:32:05,920 Speaker 1: deserve the full street. So I went to a public 579 00:32:06,000 --> 00:32:08,320 Speaker 1: grade school, but then I went to a Catholic high 580 00:32:08,320 --> 00:32:11,440 Speaker 1: school which had a good basketball reputation. It's not like 581 00:32:11,440 --> 00:32:13,560 Speaker 1: one of these basketball factories today. But they had won 582 00:32:13,560 --> 00:32:16,440 Speaker 1: a state championship, so I was excited to play. I 583 00:32:16,840 --> 00:32:19,000 Speaker 1: made the team, but I was here. I was this 584 00:32:19,040 --> 00:32:22,760 Speaker 1: public school guy coming on the team, and basically of 585 00:32:22,880 --> 00:32:25,600 Speaker 1: the Catholic grade schools that fed into the team, the 586 00:32:25,640 --> 00:32:28,480 Speaker 1: starting five from that best team was like, we're the 587 00:32:28,520 --> 00:32:31,160 Speaker 1: team for high school. We don't need this new guy 588 00:32:31,240 --> 00:32:33,440 Speaker 1: from from public school. So there's a bit of hazing 589 00:32:33,440 --> 00:32:36,920 Speaker 1: that went on. Um and again, I'm like fifteen years old, 590 00:32:36,920 --> 00:32:43,600 Speaker 1: this is nineteen eighty something, and uh, I did something dorky. 591 00:32:43,680 --> 00:32:45,720 Speaker 1: I don't know what it is. And one guy on 592 00:32:45,800 --> 00:32:48,480 Speaker 1: the team who was wearing a retainer, I will I 593 00:32:48,520 --> 00:32:50,479 Speaker 1: will point out, and you know how hard it is 594 00:32:50,520 --> 00:32:55,560 Speaker 1: to get bullied by a kid with a retainerult for you. Yeah, 595 00:32:55,760 --> 00:32:58,760 Speaker 1: And he said, oh, he's a dork something like that, 596 00:32:58,880 --> 00:33:01,320 Speaker 1: except he was wearing trainer and it sounded like he 597 00:33:01,400 --> 00:33:07,320 Speaker 1: said he's a stork and Sarah the so that some 598 00:33:07,360 --> 00:33:09,120 Speaker 1: guy other guy on the team said, did you call 599 00:33:09,200 --> 00:33:12,200 Speaker 1: him stork? And sorry? This is where your your lack 600 00:33:12,240 --> 00:33:15,240 Speaker 1: of old man movie knowledge comes into play, because there's 601 00:33:15,280 --> 00:33:17,360 Speaker 1: a character in the in a Great Old Man movie 602 00:33:17,400 --> 00:33:21,760 Speaker 1: called Animal House, which you probably haven't seen you've seen 603 00:33:21,800 --> 00:33:25,360 Speaker 1: Animal House, all right, So Animal House, you know it 604 00:33:25,480 --> 00:33:28,320 Speaker 1: was meant to be a comedy, But for guys of 605 00:33:28,400 --> 00:33:30,720 Speaker 1: my generation, it was like a how to video, like 606 00:33:30,800 --> 00:33:33,600 Speaker 1: this is how we thought life in college was supposed 607 00:33:33,640 --> 00:33:35,400 Speaker 1: to be lived. So if you're ever wondering why like 608 00:33:36,000 --> 00:33:38,800 Speaker 1: me and Chris Nage and your boss Jeremy aren't quite 609 00:33:38,800 --> 00:33:41,560 Speaker 1: as sharp as your generation, that that explains it all. 610 00:33:41,720 --> 00:33:45,040 Speaker 1: I'm sure that's the reason. But Stork was like the 611 00:33:45,080 --> 00:33:48,920 Speaker 1: nerdiest character, like predated Revenge of the Nerds, another old 612 00:33:48,920 --> 00:33:51,800 Speaker 1: man movie. He had the tape on his glasses, y 613 00:33:51,880 --> 00:33:54,800 Speaker 1: had like two lines, and he was clearly the dirkiest 614 00:33:54,880 --> 00:33:59,080 Speaker 1: character in film history up to that point. Um, and 615 00:33:59,120 --> 00:34:02,560 Speaker 1: so that nickname. Only the guys on the basketball team 616 00:34:02,680 --> 00:34:05,200 Speaker 1: would call me that. And like if some girl in 617 00:34:05,240 --> 00:34:07,520 Speaker 1: the lue room overheard this, she'd be like, why do 618 00:34:07,840 --> 00:34:10,680 Speaker 1: they call you Stuirk? And I'd say, well, it's kind 619 00:34:10,680 --> 00:34:12,960 Speaker 1: of embarrassing, but but I've been known to steal the 620 00:34:13,040 --> 00:34:16,120 Speaker 1: ball and go coast to coast, and I fly to 621 00:34:16,200 --> 00:34:21,440 Speaker 1: the basket like a beautiful Birdy I laid the ball 622 00:34:21,480 --> 00:34:24,160 Speaker 1: in the net the same way as Stuerk. Gently lays 623 00:34:24,160 --> 00:34:27,920 Speaker 1: a baby in the cradle and then yeah, this is 624 00:34:28,000 --> 00:34:34,080 Speaker 1: really didn't work because then some other guy from the 625 00:34:34,080 --> 00:34:37,480 Speaker 1: team would show up and say that's not true. That's 626 00:34:37,480 --> 00:34:40,680 Speaker 1: not But here's what's so I finally googled this character. 627 00:34:40,680 --> 00:34:42,680 Speaker 1: I was like, who played this character anything? What's what's 628 00:34:42,680 --> 00:34:45,879 Speaker 1: the deal with this guy? Fascinating story about the guy 629 00:34:45,920 --> 00:34:49,160 Speaker 1: who played it? Um, which really is redeemed. It this 630 00:34:49,239 --> 00:34:51,320 Speaker 1: nickname for me, and I'm fine with it now because 631 00:34:51,760 --> 00:34:54,440 Speaker 1: he's actually the guy who wrote the movie. His name's 632 00:34:54,480 --> 00:35:01,120 Speaker 1: Douglas Kenny. Yeah. He founded the mag see National Lampoon, 633 00:35:01,239 --> 00:35:03,759 Speaker 1: which was like a huge steal old guys like me 634 00:35:03,840 --> 00:35:07,200 Speaker 1: back in the day, a really funny magazine. He also 635 00:35:07,280 --> 00:35:11,040 Speaker 1: wrote Caddy Shock, helps writed him and Harold Ramos, another actor, 636 00:35:11,600 --> 00:35:15,040 Speaker 1: helps to write Caddy Shock and Animal House. Uh. Sadly, 637 00:35:15,080 --> 00:35:17,360 Speaker 1: he died a tragic death where he fell off of 638 00:35:17,360 --> 00:35:20,480 Speaker 1: a mountain in Hawaii. But before that he was he 639 00:35:20,520 --> 00:35:22,719 Speaker 1: was he was pretty good, So I'm all right with that. 640 00:35:22,800 --> 00:35:25,880 Speaker 1: You know. It's one of the most influential characters in 641 00:35:26,480 --> 00:35:30,080 Speaker 1: writers in the old man movie genre, which back then 642 00:35:30,160 --> 00:35:33,319 Speaker 1: we just called the movies, but they are. Yeah, I 643 00:35:33,320 --> 00:35:36,200 Speaker 1: don't think the other players on the basketball team. We're 644 00:35:36,280 --> 00:35:40,880 Speaker 1: really thinking that through when they called these stars, great 645 00:35:41,000 --> 00:35:47,600 Speaker 1: turnaround on your part. Life life is like that, and 646 00:35:48,120 --> 00:35:50,279 Speaker 1: that is if only you've known that when you were 647 00:35:50,280 --> 00:35:55,640 Speaker 1: talking to the girls in the lush room, gave me 648 00:35:55,640 --> 00:35:57,160 Speaker 1: after this guy, and look at how much he did. 649 00:35:57,719 --> 00:35:59,520 Speaker 1: I know I wouldn't have to take my sister to 650 00:35:59,560 --> 00:36:04,480 Speaker 1: the prom after all. Now, honestly, my stork is an 651 00:36:04,480 --> 00:36:09,600 Speaker 1: honorable nickname. Everyone who rated to hear this nickname, I'm 652 00:36:09,600 --> 00:36:11,600 Speaker 1: sure they'll be really happy to hear it. Thank you 653 00:36:11,640 --> 00:36:16,719 Speaker 1: for sharings are that are out there. They now have 654 00:36:16,920 --> 00:36:20,160 Speaker 1: earned every word written because look at the information that 655 00:36:20,160 --> 00:36:22,879 Speaker 1: that brought forth. But Sarah, let's practice here though. If 656 00:36:22,920 --> 00:36:25,520 Speaker 1: someone hears about this nick nickname but hadn't listened to 657 00:36:25,520 --> 00:36:27,640 Speaker 1: this episode, how are you how are you going to 658 00:36:27,680 --> 00:36:31,200 Speaker 1: explain how I got that nickname that Mike used to 659 00:36:31,200 --> 00:36:34,279 Speaker 1: fly to the hoop when he played basketball. That's it, 660 00:36:34,520 --> 00:36:38,560 Speaker 1: That's why you're that's why you're my favorite, of course, colleague, Sarah. 661 00:36:38,560 --> 00:36:40,319 Speaker 1: Thank you, of course. Oh wow, I'm gonna have to 662 00:36:40,320 --> 00:36:45,080 Speaker 1: tell everyone you just said that. Okay, I won't tell, 663 00:36:45,640 --> 00:36:47,960 Speaker 1: but now we're gonna have to come up with something else. 664 00:36:48,080 --> 00:36:55,200 Speaker 1: To get ratings on the show. Season's nickname under Wrap, 665 00:36:55,480 --> 00:36:59,240 Speaker 1: So I'll also put out there if if anyone listening 666 00:36:59,280 --> 00:37:02,319 Speaker 1: to the podcast says anything that they want to know 667 00:37:02,840 --> 00:37:05,239 Speaker 1: about the podcast, the show about Mica l I let 668 00:37:05,280 --> 00:37:07,440 Speaker 1: us know. Maybe we'll make that the next gimmick, as 669 00:37:07,480 --> 00:37:10,799 Speaker 1: Mike would call it, But Susan Schmidt, We're gonna have 670 00:37:10,840 --> 00:37:12,440 Speaker 1: to leave it there. Thank you so much for coming 671 00:37:12,480 --> 00:37:14,279 Speaker 1: on the show today. Thank you for having me. I 672 00:37:14,280 --> 00:37:23,120 Speaker 1: always great to talk to you guys What Goes Up. 673 00:37:23,160 --> 00:37:26,319 Speaker 1: We'll be back next week. Until then, you can find 674 00:37:26,400 --> 00:37:29,240 Speaker 1: us on the Bloomberg Terminal, website and app, or wherever 675 00:37:29,280 --> 00:37:31,759 Speaker 1: you get your podcasts. We'd love it if you took 676 00:37:31,800 --> 00:37:33,760 Speaker 1: the time to rate and review the show on Apple 677 00:37:33,800 --> 00:37:36,600 Speaker 1: podcast so more listeners can find us. And you can 678 00:37:36,640 --> 00:37:39,560 Speaker 1: find us on Twitter, follow me at at Sarah Ponzack, 679 00:37:39,840 --> 00:37:42,560 Speaker 1: Mike is that Rea Anonymous, and you can also follow 680 00:37:42,600 --> 00:37:46,720 Speaker 1: Bloomberg Podcasts at podcasts. Also thank you to Charlie Pellett 681 00:37:46,719 --> 00:37:48,759 Speaker 1: of Bloomberg Radio and the voice of the New York 682 00:37:48,800 --> 00:37:52,640 Speaker 1: City Subway System. What Goes Up is produced by Tofur Forehead. 683 00:37:52,960 --> 00:37:56,440 Speaker 1: The head of Bloomberg Podcast is Francesco Levie. Thanks for listening, 684 00:37:56,600 --> 00:38:08,880 Speaker 1: See you next time. The Four