WEBVTT - The Impact Of A European Coronavirus Lockdown 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day, we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market crows, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.600 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.600 --> 0:00:18.479 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.599 at Bloomberg dot com slash podcast. Last night was that 0:00:22.600 --> 0:00:24.520 at a dinner with some friends Matt, including a young 0:00:24.520 --> 0:00:26.920 woman who just graduated from nursing school. She's gonna start 0:00:26.920 --> 0:00:30.200 her first full time job the Children's Hospital Philadelphia, which 0:00:30.200 --> 0:00:32.479 is a great, great hospital, and it just she was 0:00:32.560 --> 0:00:36.280 so enthusiastic and so passionate and committed. It just made 0:00:36.280 --> 0:00:38.760 me feel good because you think about the folks of 0:00:38.840 --> 0:00:41.720 it on our front lines of during this pandemic um 0:00:41.760 --> 0:00:44.280 and just the stress they've been put under, and you 0:00:44.400 --> 0:00:46.559 just wonder, you know, how they do it. UM. That's 0:00:46.560 --> 0:00:48.400 where we like to talk to folks that are really 0:00:48.760 --> 0:00:51.800 uh touched, you know, really tapped into that part of 0:00:51.840 --> 0:00:55.240 the healthcare system. Jennet Elkin, president and Chief executive Officer 0:00:55.240 --> 0:00:58.200 of Icon Medical Network, joins us Icon Medical found in 0:00:58.800 --> 0:01:02.440 places physicians and actitioners on assignment in hospitals and health 0:01:02.440 --> 0:01:05.479 care facilities in the US, so she really knows what's 0:01:05.480 --> 0:01:07.520 going on the front lines. Janet, thanks so much for 0:01:07.600 --> 0:01:10.680 joining us here. Again, it seems like in parts of 0:01:10.720 --> 0:01:13.240 this country and other parts around the world, we're getting 0:01:13.240 --> 0:01:18.280 another wave of COVID um cases. Here. What's it like 0:01:18.319 --> 0:01:22.960 on the front lines. It's still extraordinarily busy, as you 0:01:23.000 --> 0:01:27.399 can imagine. In addition to that, though, given that we're 0:01:27.440 --> 0:01:30.880 seeing requirements for the vaccine really go up, as you 0:01:30.920 --> 0:01:34.360 can imagine if they would do have to stop this 0:01:34.440 --> 0:01:37.479 at some point. But what's happening now is it's getting 0:01:37.520 --> 0:01:40.480 harder to place nurses who won't get the vaccine. So 0:01:40.600 --> 0:01:43.280 it's kind of closing an interesting time right now in 0:01:43.360 --> 0:01:46.600 terms of staffing these facilities. Well, I mean, do you 0:01:46.640 --> 0:01:49.640 want to place a nurse who won't get the vaccine? 0:01:50.040 --> 0:01:55.120 Do I really want a medical professional who, uh is 0:01:55.200 --> 0:01:59.960 that obtuse working on me? I don't think so. Oh, 0:02:00.120 --> 0:02:03.120 given that my dad died early from COVID even if 0:02:03.160 --> 0:02:06.240 you hadn't, yeah, you really don't. So what's happening now 0:02:06.360 --> 0:02:10.560 is that they're gravitating nurses towards those nurses towards facility 0:02:10.639 --> 0:02:13.480 and also there are a few physicians out there who 0:02:13.520 --> 0:02:16.200 won't get vaccinated, but it's becoming more difficult for them. 0:02:16.240 --> 0:02:19.560 And in a way, although that's hard for facilities, it 0:02:19.680 --> 0:02:23.760 also means that hopefully we will get more people vaccinated 0:02:24.000 --> 0:02:27.440 and be able to affect better patient care. Janet, you know, 0:02:27.960 --> 0:02:29.840 you know our views here in New York City obviously 0:02:29.919 --> 0:02:32.520 skewed for much parts of for many parts of the 0:02:32.560 --> 0:02:36.560 country talked to us about healthcare per you know, system 0:02:36.639 --> 0:02:40.400 and staffing in more rural parts of America. I know 0:02:40.480 --> 0:02:43.920 that was a challenge even before the pandemic. What's it 0:02:44.000 --> 0:02:48.160 like now it continues to be. I mean, you've got, 0:02:48.600 --> 0:02:51.880 if you think about it, not only COVID and what 0:02:52.040 --> 0:02:55.239 that's caused in terms of medium more practitioners, the fact 0:02:55.280 --> 0:02:56.799 that they didn't have enough to begin with in the 0:02:56.880 --> 0:02:59.560 rural areas, and then on top of that as fallout 0:02:59.639 --> 0:03:01.440 from OVID, and I think how it made people. We 0:03:01.560 --> 0:03:05.480 think things the great resignation. Yes, we see it in 0:03:05.560 --> 0:03:08.840 terms of nurses, physicians resigning, but some things you may 0:03:08.840 --> 0:03:11.600 not think about, or even the recruiters who work for 0:03:11.639 --> 0:03:15.680 health care facilities to place more permanent employees, they're also 0:03:15.720 --> 0:03:19.160 moving on. So Jennet. Where are we in terms of 0:03:19.160 --> 0:03:21.080 the pipeline? Again, last night I had dinner with a 0:03:21.080 --> 0:03:23.520 young woman who just graduated nursing school. Where are we 0:03:23.560 --> 0:03:29.440 in terms of putting out doctors, nurses, nurse practitioners, things 0:03:29.880 --> 0:03:34.160 like that? Is how's the pipeline? I mean, the pipeline 0:03:34.200 --> 0:03:37.360 is obviously not great. It takes quite a while to 0:03:37.880 --> 0:03:40.600 be able to get your degree. Of course, physicians the 0:03:40.640 --> 0:03:45.240 most right um CRNAs, which are advanced practice nurses who 0:03:45.280 --> 0:03:48.320 go on traditional training. But even for our ends, I 0:03:48.360 --> 0:03:51.400 mean it's they can't get them out fast enough. Now 0:03:51.560 --> 0:03:53.640 the person who had dinner with is going to chop 0:03:53.840 --> 0:03:56.560 which children's hospital and Filly is one of the most 0:03:56.600 --> 0:03:59.920 desirable ones. But think about the hospitals that don't have 0:04:00.160 --> 0:04:04.520 that kind of reputation. It's getting extraordinarily difficult to be 0:04:04.600 --> 0:04:08.480 able to place in a practitioners. I wonder what your 0:04:08.480 --> 0:04:11.880 take is on the Build Back Better bill, And not 0:04:11.960 --> 0:04:13.960 because I want you to take a political stance, In 0:04:14.000 --> 0:04:19.600 fact I don't, but it does seem that it's extraordinarily 0:04:19.600 --> 0:04:24.839 difficult in America, especially compared to other countries, for um, 0:04:24.920 --> 0:04:27.560 for mothers to go to work, for mothers to get 0:04:27.560 --> 0:04:31.679 an education and to go to work compared to you know, Germany, 0:04:31.680 --> 0:04:34.400 where I spend most of my time because childcare is 0:04:35.320 --> 0:04:38.839 expensive and it's an arduous process for a lot of 0:04:38.880 --> 0:04:41.120 people to to feed their kids. I mean, is this 0:04:41.160 --> 0:04:45.359 going to help? Hopefully it will, And you know, you 0:04:45.400 --> 0:04:48.040 bring up an excellent point. It is difficult. You can't 0:04:48.040 --> 0:04:49.880 do it all at the same time. This is why 0:04:49.920 --> 0:04:54.520 we're seeing for physicians such an uptick in them wanting 0:04:54.560 --> 0:04:57.840 to do telehealth because they don't have to these travelers, 0:04:58.040 --> 0:05:01.240 they don't have to travel to another occasion. They can 0:05:01.400 --> 0:05:04.240 do it from home and that's making a big difference. 0:05:04.279 --> 0:05:07.880 But of course those things in healthcare can't be done 0:05:08.279 --> 0:05:10.920 in terms of telehealth. But we if we don't do something, 0:05:10.960 --> 0:05:14.119 it's only going to get that much worse. All right, Joanna, 0:05:14.160 --> 0:05:15.760 thank you so much for joining us. We appreciate it. 0:05:15.800 --> 0:05:20.000 Janet Elkin, President and chief executive officer of Icon Medical Network. 0:05:24.040 --> 0:05:26.720 One of the analysts that we have on a lot 0:05:27.040 --> 0:05:29.680 Dan Ives. I think he's one of the most listened 0:05:29.680 --> 0:05:31.520 to analysts on Wall Street when it comes to the 0:05:31.520 --> 0:05:35.200 tech area, and he is, to be fair bullish. Every 0:05:35.240 --> 0:05:37.400 company that he covers. He has an outperform on like 0:05:37.440 --> 0:05:42.040 thirty different companies of Penn State, Nitney exactly, he said, 0:05:42.120 --> 0:05:45.440 tweeted today, we believe there's five trillion dollars of e 0:05:45.560 --> 0:05:48.760 V auto market up for grabs, with Tesla likely to 0:05:48.800 --> 0:05:50.840 own two and a half trillion dollars of this pie. 0:05:51.120 --> 0:05:53.360 We estimate China is worth four hund dollars per share 0:05:53.400 --> 0:05:56.320 of the Testla story for two, raising our price target 0:05:56.520 --> 0:05:58.880 from eleven to four hundred with our bul case of 0:05:58.920 --> 0:06:02.679 eighteen hundred. So he's a big believer here. He's been right. Um, 0:06:02.720 --> 0:06:05.520 we have another uh Tesla fan, at least in terms 0:06:05.560 --> 0:06:10.520 of the car. Uh. Matt Winkler, Bloomberg News editor in 0:06:10.600 --> 0:06:14.440 chief emeritus and also the author of a piece on Rivian. 0:06:14.920 --> 0:06:18.080 So I didn't realize you owned a Tesla car as well. Matt. 0:06:18.080 --> 0:06:19.840 We talked about this on TV a couple of days ago. 0:06:20.120 --> 0:06:22.039 Last I heard you were in a Toyota Avalon. What 0:06:22.080 --> 0:06:29.200 happened two thousand and fourteen, to be precise. We acquired 0:06:29.600 --> 0:06:34.520 a models and we're happily driving it to this day. Uh. 0:06:34.640 --> 0:06:38.000 So you loved I know you loved the Avalon. I'll 0:06:38.040 --> 0:06:40.280 never forget when you told me about that. You had 0:06:40.279 --> 0:06:42.560 a lot of enthusiasm for it in terms of what 0:06:42.600 --> 0:06:46.239 we see here at Rivan, it is if you didn't 0:06:46.240 --> 0:06:49.040 know the Tesla story, it would be mind blowing the 0:06:49.120 --> 0:06:53.080 fact that electric car maker truckmaker can come out and 0:06:53.120 --> 0:06:58.159 get a hundred and twenty billion dollar market cap um 0:06:58.240 --> 0:07:00.760 even though they've only sold probably this point three or 0:07:00.760 --> 0:07:05.039 four hundred vehicles on the road. They're bigger than GM 0:07:05.200 --> 0:07:10.480 by almost thirty five percent right now, How is it possible? 0:07:10.720 --> 0:07:15.240 So what gets every investor excited Matt and Paul, I 0:07:15.280 --> 0:07:20.240 think you agree is growth. That is always what brings 0:07:20.280 --> 0:07:26.000 the market to its highest levels. And Tesla, for example, uh, 0:07:26.120 --> 0:07:29.760 since it went public in two thousand and ten, has 0:07:29.800 --> 0:07:34.520 seen four hundred times the growth of the average for 0:07:34.560 --> 0:07:39.880 the automotive industry over a ten year period, which is unprecedented. 0:07:40.160 --> 0:07:44.679 And that growth has enabled Tesla, as you now know UM, 0:07:44.840 --> 0:07:49.040 to make a profit um and to get to a 0:07:49.120 --> 0:07:54.800 point where even the doubters are now acknowledging that electric 0:07:54.920 --> 0:07:59.160 vehicles are for real, they are the future. And Tesla 0:07:59.280 --> 0:08:02.280 did that. So oh, it's set the stage for Ribbyan, 0:08:03.040 --> 0:08:06.480 which is going in a somewhat different direction because its 0:08:06.520 --> 0:08:12.120 focuses on trucks and suv but more particularly vans commercial 0:08:12.640 --> 0:08:18.280 um traffic. Jeff Bezos, who needs no introduction, uh, and 0:08:18.440 --> 0:08:22.880 his company Amazon already ordered a hundred thousand of these 0:08:23.000 --> 0:08:26.600 Ribbyan bands, which haven't been produced yet. But that gives 0:08:26.600 --> 0:08:30.160 you some idea of the anticipation of where this market 0:08:30.240 --> 0:08:33.760 is going. And the stock market is always about the future, 0:08:33.800 --> 0:08:35.800 it's not about the past, it's not about the rear 0:08:35.880 --> 0:08:40.920 view mirror. So this explains why Ribbyan as of this 0:08:41.000 --> 0:08:46.240 moment is number five in terms of market valuation among 0:08:46.280 --> 0:08:50.119 the top ten automakers, having sold fewer than fifty vehicles. 0:08:50.120 --> 0:08:53.640 Crazy and Matt, you're out with a column on all 0:08:53.720 --> 0:08:56.800 of this talking about the v market and evaluations, and 0:08:56.840 --> 0:08:59.200 along with your colleague Shinpay and Jennifer leew are really 0:08:59.240 --> 0:09:02.240 some great data. As always, the number of the line 0:09:02.240 --> 0:09:03.760 that kind of stuck out to me, Matt is, you know, 0:09:03.800 --> 0:09:05.920 the market value of the top ten automakers is more 0:09:05.960 --> 0:09:10.719 than two thirds electric, a reality considered improbable, if not impossible, 0:09:10.840 --> 0:09:14.160 just a year ago. And I agree with that shocked me. 0:09:14.520 --> 0:09:20.800 I mean, does that suggest that the traditional automakers they've 0:09:20.880 --> 0:09:23.520 just missed it or can they catch up? Do you think, well, 0:09:23.559 --> 0:09:28.400 they will have to catch up because probably by the 0:09:28.400 --> 0:09:34.360 internal combustion engine will be a museum piece. And so, uh, 0:09:34.400 --> 0:09:40.280 that's not a secret at this point. And so anyway, 0:09:40.640 --> 0:09:44.360 the uh, the rest of the industry gets to that 0:09:44.440 --> 0:09:47.319 point is going to be the story. And so they're 0:09:47.360 --> 0:09:49.920 going to do it all kinds of ways. But for sure, 0:09:50.960 --> 0:09:54.040 the ev makers can do only one thing, which is 0:09:54.080 --> 0:09:58.520 make electric vehicles. The rest of the industry has a 0:09:58.600 --> 0:10:03.240 much messier, more difficult, challenging task ahead. I've erected a 0:10:03.320 --> 0:10:07.000 museum to the internal combustion engine at my house. Increasingly 0:10:07.040 --> 0:10:10.920 I feel guiltier and guiltier about driving these cars, I 0:10:10.960 --> 0:10:16.840 will admit, because there's such huge emitters globally right internal 0:10:16.840 --> 0:10:22.360 combustion engines really contributing to um greenhouse gas emissions build 0:10:22.440 --> 0:10:25.679 up and climate climate change. Do you think we're gonna 0:10:25.720 --> 0:10:30.200 need continue to need government incentives Matt, for electric cars 0:10:30.320 --> 0:10:34.720 and investment in infrastructure from the government in order to 0:10:34.880 --> 0:10:37.599 make a change, to make that switch bigger. Here's the 0:10:37.640 --> 0:10:43.000 best answer to that question, Matt. California is the best 0:10:43.040 --> 0:10:47.559 performing economy in the United States, subject of another column 0:10:47.600 --> 0:10:50.000 you had recently, and it's number five in the world. 0:10:50.679 --> 0:10:52.840 If it were a country, it's number five in the world. 0:10:53.679 --> 0:10:56.839 California is the place, more so than any other state, 0:10:57.760 --> 0:11:04.400 where people's preferences and government policy converge. They converge, they're 0:11:04.440 --> 0:11:07.520 not at odds with each other. And that's why they're 0:11:07.520 --> 0:11:12.600 more e vs in California than anywhere else. Uh in 0:11:12.640 --> 0:11:18.440 the US and where you could easily see I mean 0:11:19.720 --> 0:11:24.079 the growth of evs accelerating and the fact that Rivan 0:11:25.400 --> 0:11:29.880 is an Irvine, California based company. Tesla of course started 0:11:30.120 --> 0:11:34.280 in California and Palo Auto. Even though it's moving its 0:11:34.280 --> 0:11:39.120 headquarters to Texas, the place where Tesla makes its vehicles 0:11:39.240 --> 0:11:43.040 is still Fremont. So that's not going to change, if anything, 0:11:43.160 --> 0:11:45.080 that the production is going to go up. So the 0:11:45.080 --> 0:11:49.200 answer your question is yes, Um, this just only accelerates, 0:11:50.040 --> 0:11:51.800 all right, Matt, thank you so much for joining us. 0:11:51.800 --> 0:11:55.520 Really appreciated. Matt Winkler, Editor in chief emeritus founder of 0:11:55.720 --> 0:11:59.200 Bloomberg News. He's something, Have you driven electrical? I'm not? 0:11:59.679 --> 0:12:02.200 All My God, are serious? I'm not. You have to 0:12:02.280 --> 0:12:04.560 try it, all right. I think that makes a convert 0:12:04.600 --> 0:12:06.640 and a lot of people when you experienced the I 0:12:06.679 --> 0:12:11.160 think it might be in the market. We'll see red 0:12:11.160 --> 0:12:12.880 and green on the screen is a good friend. Tom 0:12:12.960 --> 0:12:14.880 Keene likes to say, let's see what the action is 0:12:14.920 --> 0:12:17.800 with the small cap stocks. We do that every day 0:12:17.800 --> 0:12:24.240 at this time with Bloomberg Market Reporter. Yes, across asset 0:12:25.120 --> 0:12:28.960 markets correspondent actually, but thanks the Russell two thousand down 0:12:29.040 --> 0:12:32.079 zero point four percent on the day. Riskoff moved across 0:12:32.080 --> 0:12:34.400 the market. The Rustle two thousands. No different you under 0:12:34.440 --> 0:12:36.840 the hood, though you have some deal news. Simmons First 0:12:36.920 --> 0:12:40.240 National has agreed to acquire Spirit of Texas Bank shars 0:12:40.240 --> 0:12:42.439 in a cash and stock deal valued at about five 0:12:42.880 --> 0:12:46.040 eighty one million dollars. Spirit of Texas Bank shares. The 0:12:46.080 --> 0:12:49.520 takers st x B shares are up eight percent um. 0:12:49.640 --> 0:12:52.600 You also have Simmons First National Tier s f n 0:12:52.640 --> 0:12:55.360 C shares are down six percent to the downside. I'm 0:12:55.360 --> 0:12:57.680 sad to say the other stories are all downside stories. 0:12:57.720 --> 0:13:01.000 And Nanta Pharmaceuticals down eleven percent of the tickers e 0:13:01.120 --> 0:13:04.839 n t A after discontinuing development of its oral hepatitis 0:13:04.920 --> 0:13:08.360 B drug based on emerging safety concerns. You also have 0:13:08.440 --> 0:13:11.560 Bell Ring ticker b r b R down eight percent, 0:13:11.720 --> 0:13:15.319 maker of nutrition supplements, posting fiscal fourth quarter revenue that 0:13:15.440 --> 0:13:19.720 fell short of consensus estimates, and lastly, Record Systems UH 0:13:19.840 --> 0:13:22.400 down six percent, ticker r e k R, and AI 0:13:22.520 --> 0:13:25.760 technology company that is also the worst performer in the 0:13:25.840 --> 0:13:29.240 Russell two thousand index, missing three third quarter excuse me 0:13:29.400 --> 0:13:32.000 consensus estimates on both the top and bottom lines, and 0:13:32.160 --> 0:13:36.760 saying revenue will fall in the coming quarters. Bloom Now, 0:13:36.840 --> 0:13:38.679 what's the exact title here? I want to get this right? 0:13:38.760 --> 0:13:42.200 Markets correspondent for Bloomberg TV and radio. Have you thought 0:13:42.200 --> 0:13:46.920 about a different title? As interesting as I think, I 0:13:47.000 --> 0:13:50.840 was already a markets reporter, reporter and a correspondent. I 0:13:50.840 --> 0:13:54.800 don't know it's a title upgrade. It's a markets reporter. 0:13:54.920 --> 0:13:56.280 First I did it on print. Now I'm doing it 0:13:56.320 --> 0:13:58.600 on TV and radio. So all right? Are we gonna 0:13:58.600 --> 0:14:01.520 go with that? Mant? I think editor at large sounds 0:14:01.520 --> 0:14:04.960 good and pretty is a triple threat because she writes 0:14:05.000 --> 0:14:09.000 for Ben, she's on TV, and she's on radio. Actually 0:14:09.000 --> 0:14:11.440 a quadruple threat because she does quick take as well, 0:14:12.200 --> 0:14:14.040 and she probably does some social media thing that I 0:14:14.080 --> 0:14:16.280 don't even know about. I know Matt doesn't follow me 0:14:16.320 --> 0:14:19.640 on Twitter, so you wouldn't know. This is a very 0:14:19.680 --> 0:14:23.200 public call out. I fall out. I follow mostly people 0:14:23.200 --> 0:14:27.400 who drive race cars or ride motorcycles. So basically to 0:14:27.440 --> 0:14:29.160 get Matt to follow me, I have to go get 0:14:29.200 --> 0:14:31.800 a car and drive it around. I think so. And 0:14:31.840 --> 0:14:34.840 when it went a Grand Prix, all right, great, Thanks 0:14:34.880 --> 0:14:37.080 so much for joining us. We always love getting your 0:14:37.080 --> 0:14:39.480 thoughts there on the market. Avery Sheffield joins us now 0:14:39.520 --> 0:14:42.720 every Managing Director and Senior Portfolio off Long Short Equity 0:14:43.360 --> 0:14:47.200 head Funds Strategy at Rockefeller Asset Management. Every We just 0:14:47.240 --> 0:14:51.880 got through great, great third quarter earnings. I thought i'd 0:14:51.920 --> 0:14:55.600 see more, hear more concern and guidance as it relates 0:14:55.640 --> 0:14:59.600 to supply chains, global supply chains. You know, they called 0:14:59.600 --> 0:15:02.240 it out it. We're still seeing some pretty good guidance there. 0:15:02.240 --> 0:15:06.120 What are your thoughts? Yes, I mean you know this 0:15:06.320 --> 0:15:09.720 as the supply chain concerns. Um, we're really in focus 0:15:09.960 --> 0:15:12.360 kind of late August, kind of beginning with one of 0:15:12.360 --> 0:15:16.400 the major global footwear's announcements and then through September. You know, 0:15:16.600 --> 0:15:19.760 my instinct was that this was kind of a buy 0:15:19.880 --> 0:15:23.600 the dip opportunity because for key reasons, like one is 0:15:24.280 --> 0:15:27.120 um that when you we've seen when you have supply 0:15:27.200 --> 0:15:31.280 chain dynamics issues, it leads to less inventory and less 0:15:31.320 --> 0:15:34.200 inventory needs you know, less supply and and and and 0:15:34.280 --> 0:15:36.960 that match with demand allows for pricing power. But from 0:15:36.960 --> 0:15:39.920 a fundamental perspective on supply chain, no, there there are 0:15:39.920 --> 0:15:43.320 a few companies that are heavily have been heavily reliant 0:15:43.400 --> 0:15:46.680 on UM and this is an apparel retail sector UM 0:15:46.680 --> 0:15:48.760 that have been heavily reliant on regions that have had 0:15:48.800 --> 0:15:53.400 significant shutdowns. And they are they're absolutely experiencing UM less supply. 0:15:53.840 --> 0:15:57.479 But many, many, you know, apparel and an accessories manufacturers 0:15:57.480 --> 0:16:00.520 have distributed supply chains around the world, and it looked 0:16:00.600 --> 0:16:02.440 like they were going to be able to manage through this. 0:16:02.520 --> 0:16:06.400 You know, it's some incremental freight and shipping costs UM 0:16:06.400 --> 0:16:08.840 shifting around, you know, which inventories they were gonna hold. 0:16:08.840 --> 0:16:11.440 But it started to become evidence I think by October 0:16:11.680 --> 0:16:13.320 that many of the companies we're going to get through 0:16:13.360 --> 0:16:16.000 this relatively unscathed. And that's certainly what we've seen in 0:16:16.000 --> 0:16:20.160 the results. I have got to ask, you have a 0:16:20.240 --> 0:16:25.360 degree in neuroscience UM from Pomona. First of all, what 0:16:25.640 --> 0:16:28.080 is that and is that like science of the brain? 0:16:28.160 --> 0:16:30.520 I think? And what and what does that? What? What 0:16:30.640 --> 0:16:35.320 kind of edge does that give you? Oh so yes, 0:16:35.400 --> 0:16:37.840 I am a neuroscience major, and that is a science 0:16:37.840 --> 0:16:40.720 of the brain, and it includes hard sciences as well 0:16:40.760 --> 0:16:43.920 as psychology. And look, I I studied it because I 0:16:43.960 --> 0:16:47.280 find I find how I find science and how the 0:16:47.360 --> 0:16:50.200 human brain works to be fascinating. From a training perspective, 0:16:50.200 --> 0:16:52.160 this WI be speaking to anyone else looking to figure 0:16:52.160 --> 0:16:54.160 out what to study in college, certainly to become an 0:16:54.200 --> 0:16:57.280 investor or anything else. Um, something like neuroscience gives you 0:16:57.320 --> 0:17:00.720 just a very strong foundation in science, in the analytics 0:17:00.720 --> 0:17:05.080 and the math, um, asking questions, posing hypotheses, really trying 0:17:05.119 --> 0:17:08.120 to figure out, um, the answers to to open ended questions. 0:17:08.400 --> 0:17:10.520 So that's I think good training for anyone. And then 0:17:10.640 --> 0:17:13.240 the psychology, of of course, is what what really plays 0:17:13.280 --> 0:17:15.800 in every day and behavioral finance is something and I 0:17:15.800 --> 0:17:20.239 find absolutely financing and assassinating and um and focus on 0:17:20.359 --> 0:17:22.240 kind of on a daily basis of how that's playing 0:17:22.240 --> 0:17:24.440 into my investment decisions and those of others. And you 0:17:24.720 --> 0:17:27.919 went from there to Wharton, so, uh, you clearly know 0:17:27.960 --> 0:17:30.040 what you're talking about when it comes to business as well. 0:17:30.280 --> 0:17:34.199 What do you think about this renewed COVID explosion in 0:17:34.359 --> 0:17:40.160 Austria and Germany, we're seeing lockdowns, We're seeing mandated vaccines. 0:17:40.680 --> 0:17:42.320 Just when we thought it was kind of all over, 0:17:44.119 --> 0:17:46.480 right well, I mean, you know the nature of viruses, 0:17:46.600 --> 0:17:50.040 they keep coming around, right so UM, but the question 0:17:50.080 --> 0:17:52.280 is how severe are they when when they when? When 0:17:52.280 --> 0:17:55.800 they come around, and we're still seeing hospitalization rates flow. 0:17:55.880 --> 0:17:57.760 I mean there are certain areas, right whereas a lot 0:17:57.800 --> 0:18:00.560 of unvaccinated people that you're seeing UM in Austria and 0:18:00.600 --> 0:18:03.520 a few other places that are UM that are causing 0:18:03.560 --> 0:18:06.040 you know, some concern and leading to these lockdowns. But 0:18:06.240 --> 0:18:07.760 I think we're really the tail end of it. I 0:18:07.760 --> 0:18:09.760 mean you, I mean, look, I think we're going to 0:18:09.800 --> 0:18:13.200 see small, a small breakouts of COVID for a long time. 0:18:13.240 --> 0:18:15.440 I mean, this virus is likely, you know, to mutate, 0:18:15.480 --> 0:18:18.160 but as long as we've seen in Israel UM, getting 0:18:18.160 --> 0:18:21.480 those booster shots really works. And I think these vaccine 0:18:21.520 --> 0:18:23.560 mandates are really the answer. I mean a lot of 0:18:23.560 --> 0:18:26.639 the lockdowns we've seen, or they're not really lockdowns, but 0:18:26.960 --> 0:18:31.879 kind of slowing activity UM has been targeted to the 0:18:31.960 --> 0:18:36.280 unvaccinated in many countries, and moving towards these mandatory vaccinations 0:18:36.400 --> 0:18:39.320 I think is really the answer. Yep, I am vaxed 0:18:39.440 --> 0:18:42.040 and boost. It's all set to go. Every Sheffield Managing 0:18:42.040 --> 0:18:45.480 director and senior portfolio managed for Long Short Equity head 0:18:45.600 --> 0:18:53.040 fun Strategy at Rockefeller Asset Management. I want to get 0:18:53.080 --> 0:18:55.800 over right now to Jonathan Wade, he joins a senior 0:18:55.840 --> 0:19:01.400 research channelist at Frost Investment Advisors. And before we get 0:19:01.720 --> 0:19:04.800 into the meat of this uh interview, I gotta ask 0:19:04.840 --> 0:19:07.879 you about a piece I saw in your bio. It says, 0:19:08.119 --> 0:19:12.240 um current CFA, which I respect greatly and former c 0:19:12.400 --> 0:19:14.639 p A for twenty plus years. I thought being a 0:19:14.720 --> 0:19:16.560 c p A was like being a marine. Aren't you 0:19:16.600 --> 0:19:18.679 like always a c p A once you were a 0:19:18.720 --> 0:19:21.800 c p A. No. I kind of kind of leave 0:19:21.880 --> 0:19:23.840 that in the background, you know, because everyone wants you 0:19:23.880 --> 0:19:27.320 to ask accounting your tax question to you, So I 0:19:28.040 --> 0:19:32.960 leave that in the background exactly. Yeah, all right, Jonathan. UM, 0:19:33.000 --> 0:19:37.640 we've just come through some really good third quarter earnings. UM. 0:19:38.320 --> 0:19:39.879 I think for a lot of people that gave them. 0:19:39.960 --> 0:19:42.159 If you just look at the market reaction, that's kind 0:19:42.160 --> 0:19:44.880 of what the market needed for this next leg. What's 0:19:44.880 --> 0:19:48.119 your earnings outlook? Do you feel like this market's expensive 0:19:48.280 --> 0:19:50.000 or did the earning story kind of come through on 0:19:50.040 --> 0:19:54.680 that old pe analysis. Well, I mean, yeah, that's a 0:19:54.720 --> 0:19:57.560 mixed question, right, I mean, because the valuation here is 0:19:57.600 --> 0:20:01.080 a little a little pricey. But on the backdrop of this, 0:20:01.720 --> 0:20:06.320 earnings look great, the economic outlook looks great. Um. The 0:20:06.920 --> 0:20:09.639 when you think about the consumer being two thirds of 0:20:09.760 --> 0:20:13.399 g d P in great shape, um under levered on 0:20:13.440 --> 0:20:16.879 their balance sheet, ability to spend more, the intentions to 0:20:16.920 --> 0:20:18.840 spend over the next twelve months or like an all 0:20:18.880 --> 0:20:22.200 time high, and then you look at a business spending 0:20:23.720 --> 0:20:27.160 the economy and capex intentions are high, cash on balance 0:20:27.200 --> 0:20:30.480 sheet is very high. So we're cautiously optimistic as we 0:20:30.640 --> 0:20:34.400 roll through the fourth quarter in two with the question being, 0:20:34.920 --> 0:20:37.119 you know what happens with COVID and we're getting a 0:20:37.200 --> 0:20:40.159 fresh out of that today. Yeah, exactly. I mean I 0:20:40.200 --> 0:20:45.239 woke up this morning, perused the markets around three, and 0:20:45.320 --> 0:20:48.960 then uh, I started listening to um Blues Traveler record, 0:20:49.080 --> 0:20:51.040 you know, the one with Dance with Me Felicia. I 0:20:51.080 --> 0:20:54.359 love that that record. And I looked back and all 0:20:54.400 --> 0:20:56.720 of a sudden, I saw the dollar index was shooting up, 0:20:57.240 --> 0:20:59.600 and the yen was gaining a lot of strength, and 0:20:59.640 --> 0:21:01.119 there was a bit in bonds, and I thought what 0:21:01.160 --> 0:21:03.199 the heck is going on? This has got to be 0:21:03.240 --> 0:21:07.120 the COVID numbers, and indeed it was. Uh if that 0:21:07.240 --> 0:21:10.480 turns into a real problem for the global economy, art stocks, 0:21:10.520 --> 0:21:14.520 price for for perfection, well, I think at a certain 0:21:14.560 --> 0:21:16.840 point you just we're gonna need to have to look 0:21:16.880 --> 0:21:19.280 through COVID, you know, because it's it's not going to 0:21:19.359 --> 0:21:22.120 be with us forever. We're eventually going to roll through this. 0:21:22.280 --> 0:21:25.600 We like you said, we have the fighter pill that's 0:21:25.640 --> 0:21:28.080 out there. Um, you know you think that that would 0:21:28.080 --> 0:21:30.080 give you some reassurance that we're going to have some 0:21:30.119 --> 0:21:34.520 return to normalcy soon. So alright, So Jonathan, what are 0:21:34.560 --> 0:21:37.120 the areas that you guys are doing working right now? 0:21:37.160 --> 0:21:39.159 I know there's a couple of camps out there. I'm 0:21:39.200 --> 0:21:41.040 sticking with the you know, the big growth stocks that 0:21:41.080 --> 0:21:42.679 have been so good to me for so long, and 0:21:43.080 --> 0:21:45.240 the other camps say, now I'm swinging for the cyclical 0:21:45.280 --> 0:21:48.720 trade here the reopening trade, and um, where do you 0:21:48.720 --> 0:21:52.639 guys think about opportunity? Um? Well, see, we're you know, 0:21:52.680 --> 0:21:57.159 broad investors. We value strategies and growth strategies. So uh, 0:21:57.160 --> 0:21:59.600 you know, on these when we look to two, I 0:21:59.600 --> 0:22:01.240 think there is the thought that we could see a 0:22:01.240 --> 0:22:03.160 little bit of a cyclical bump at least in the 0:22:03.200 --> 0:22:06.440 first half of the year on that reopening trade. So yeah, 0:22:06.440 --> 0:22:08.000 we think there is a little bit of legs left 0:22:08.000 --> 0:22:11.119 in that reopening trade, especially travel names that are getting 0:22:11.160 --> 0:22:13.679 cocked today, and we think that they should see some 0:22:13.760 --> 0:22:17.520 improvement rolls through. But also on the growth side, it's 0:22:17.720 --> 0:22:21.040 I mean it's again you still have valuation to deal with. 0:22:21.080 --> 0:22:24.080 You have the retail investor in there that's just crowding 0:22:24.080 --> 0:22:28.240 into these momentum names. But otherwise we think that the 0:22:28.280 --> 0:22:31.480 tech secular tail winds are here to stay and we'll 0:22:31.840 --> 0:22:35.120 see a continuation of that through the next few years. Yeah, 0:22:35.119 --> 0:22:39.280 the airline's got have gotten battered again today. I think 0:22:39.400 --> 0:22:43.119 Ryan Air is down ten sessions in a row, and 0:22:43.119 --> 0:22:46.359 I was looking at UM Ryan Air, I A G 0:22:46.880 --> 0:22:50.120 and Leftanza today. Ryan Air over the last five years 0:22:50.200 --> 0:22:51.879 is the only one that's given you any kind of games, 0:22:51.960 --> 0:22:57.119 and that's only ten Liftanza and UH and I A 0:22:57.240 --> 0:23:01.800