WEBVTT - Markets, Healthcare, And The Supply Chain 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 pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.520 with essential market moving news. Find the Bloomberg Markets podcast 0:00:15.560 --> 0:00:18.479 called Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:24.119 at Bloomberg dot com slash podcast SMP five at eighty. 0:00:24.200 --> 0:00:27.080 That is a correction, territory, kids, and that's what a 0:00:27.080 --> 0:00:31.040 lot of investors have been kind of expecting for a 0:00:31.080 --> 0:00:33.000 while here, and a lot of folks are even saying 0:00:33.000 --> 0:00:37.400 it's a healthy part of a longer term bull market. 0:00:37.800 --> 0:00:40.960 Let's check in with a professional and get a professional opinion. 0:00:41.040 --> 0:00:45.280 Katie Nixon, ce IO Wealth Management for Northern Trust. So, Katie, hey, 0:00:45.680 --> 0:00:47.760 thanks so much for being with us. We really appreciate 0:00:47.800 --> 0:00:50.680 the time. We are in a correction on the SMP. 0:00:51.320 --> 0:00:54.960 What do you make of it? Yes, good morning, and 0:00:55.440 --> 0:00:57.760 yes it's time for investors to buckle up. But I 0:00:57.800 --> 0:00:59.840 do think to your earlier point, this is to be 0:00:59.880 --> 0:01:04.360 a expected five percent corrections. Ten percent corrections are normal 0:01:04.480 --> 0:01:07.120 parts of market cycles, and the fact that this correction 0:01:07.200 --> 0:01:11.080 is taking place during a period of relatively strong economic growth, 0:01:11.560 --> 0:01:15.360 low unemployment, the backdrop is healthy. So our view is 0:01:15.400 --> 0:01:17.240 that it will be sort of a short term correction, 0:01:17.240 --> 0:01:19.200 but something that investors are going to perhaps have to 0:01:19.360 --> 0:01:21.040 have to live with for the next several weeks or 0:01:21.040 --> 0:01:23.679 even months. I guess the you know, the economic picture 0:01:23.720 --> 0:01:28.920 looks good, especially um the historical economic outlook and low 0:01:28.959 --> 0:01:33.480 unemployment is great, but inflation doesn't look so good. What 0:01:33.520 --> 0:01:35.640 do you think about seven? How do you expect this 0:01:35.720 --> 0:01:38.920 year to play out? Yeah, so, I mean that that 0:01:39.080 --> 0:01:41.280 is the big question, and I think that's been the 0:01:41.319 --> 0:01:45.240 biggest issue for investors insofar as the outlook for inflation 0:01:45.280 --> 0:01:47.360 influences your outlook for what the ben's going to do. 0:01:47.880 --> 0:01:50.080 Our all look for inflation is, yes, it's very high. 0:01:50.080 --> 0:01:53.400 It's been higher for longer than we thought it would be. Um, 0:01:53.440 --> 0:01:56.640 the various cycles of the COVID pandemic have certainly not helped, 0:01:56.680 --> 0:01:59.000 and we see continued strains and supply chains and things 0:01:59.000 --> 0:02:01.720 like that. So inflation has higher for longer, but we 0:02:01.800 --> 0:02:03.680 do see it coming off the boil as we as 0:02:03.720 --> 0:02:06.640 we enter the second half of two. And it's a 0:02:06.680 --> 0:02:10.000 combination of some very obvious things like just the base 0:02:10.000 --> 0:02:12.360 effects as we get past the very high levels of 0:02:12.360 --> 0:02:16.920 inflation that we saw, and then an energy prices coming 0:02:16.919 --> 0:02:18.720 back down as we head towards the summer and into 0:02:18.760 --> 0:02:21.799 the fall. So we think inflation will trend down. It 0:02:21.840 --> 0:02:24.919 will still stay stay elevated above the two percent target, 0:02:25.000 --> 0:02:27.639 but it certainly won't be printing seven percent like we've 0:02:27.680 --> 0:02:30.400 seen recently. And because of that, and the important thing 0:02:30.440 --> 0:02:33.240 for investors is because of that, we don't have an 0:02:33.280 --> 0:02:35.720 aggressive sed call here either. We think the market is 0:02:35.720 --> 0:02:38.480 probably a little bit ahead of itself anticipating for rate 0:02:38.520 --> 0:02:41.840 hikes or even I read this morning summer anticipating fifty 0:02:41.840 --> 0:02:44.400 basis point hiking in March, and we think that's a 0:02:44.440 --> 0:02:48.480 bridge too far. So, Katie, you know, I'm looking at 0:02:48.520 --> 0:02:50.760 some of the big movers today, you know, Netflix off 0:02:50.800 --> 0:02:55.320 ten percent, Tesla off seven eight percent. How do you 0:02:55.400 --> 0:02:58.920 think about the sectors that you want to have exposure 0:02:58.960 --> 0:03:02.639 to in twenty twenty two in what is in fact 0:03:02.720 --> 0:03:07.120 a rising interest rate environment. So that is a great question, 0:03:07.200 --> 0:03:10.480 and I think it's a very important question for investors 0:03:10.480 --> 0:03:13.600 to answer because what we've seen sort of coming out 0:03:13.639 --> 0:03:17.959 of the pandemic is a preference for these high growth stocks. 0:03:18.080 --> 0:03:20.280 Right you wanted to be involved in the reopening trade. 0:03:20.280 --> 0:03:23.160 And Netflix and Peloton and these these stocks are sort 0:03:23.160 --> 0:03:28.119 of very obvious uh stories um COVID related stories and 0:03:28.120 --> 0:03:32.519 and and also very strong results backing up investors enthusiasm. 0:03:32.919 --> 0:03:35.960 What has been under owned though really historically, but even 0:03:36.280 --> 0:03:40.040 post COVID is value. UM. So what we're telling our 0:03:40.080 --> 0:03:42.640 clients is you really want to strike that balance and 0:03:42.640 --> 0:03:45.880 and look at your portfolio see where you're under invested in. 0:03:45.920 --> 0:03:48.360 Most of the time that's value and value to mean 0:03:48.440 --> 0:03:51.680 US value stocks, but it can also mean non US stocks. 0:03:51.760 --> 0:03:55.400 European stocks tend to skew towards the value end of 0:03:55.400 --> 0:03:58.520 of the spectrum. UM. So we are telling our clients 0:03:58.520 --> 0:04:02.120 go global and diversify and really strike the balance between 0:04:02.160 --> 0:04:04.960 growth and value because that you're probably under under invested 0:04:04.960 --> 0:04:08.720 in value. What about US stocks? I mean, I'm watching 0:04:09.080 --> 0:04:11.200 a live ticker of the SMP now down two points 0:04:11.280 --> 0:04:16.839 seven per cent um. We've we've started the year so poorly. 0:04:17.080 --> 0:04:18.920 Is this a buying opportunity or do you want to 0:04:18.920 --> 0:04:21.560 wait it out? Since it took so long, I mean, 0:04:21.640 --> 0:04:23.640 since it didn't take so long, since it was so fast, 0:04:24.960 --> 0:04:26.720 it happened pretty fast. I mean it's just like the 0:04:26.720 --> 0:04:28.000 blink of an eye that we were back. We were 0:04:28.040 --> 0:04:30.200 at the highs in early January. So yes, it happened 0:04:30.240 --> 0:04:32.760 quite quickly. And you know that that that that tends 0:04:32.760 --> 0:04:35.680 to be in an historical pattern. You know, the the 0:04:35.720 --> 0:04:38.080 market takes the escalator up in the elevator down, as 0:04:38.120 --> 0:04:40.640 they say, and we certainly have seen that. I wouldn't 0:04:40.640 --> 0:04:45.000 really encourage investors not to try to time the market here. Um. 0:04:45.480 --> 0:04:47.960 It's so interesting. Investors always say that they want to 0:04:48.000 --> 0:04:49.800 buy the dips, but then when you have a dip 0:04:49.839 --> 0:04:51.800 like we're seeing we've seen the last couple of weeks, 0:04:51.839 --> 0:04:54.960 then especially today, investors are afraid to get in. So 0:04:55.240 --> 0:04:57.920 you have to fight your emotions state with your strategic plan. 0:04:58.160 --> 0:05:01.480 Make sure that your investments are aligned with your financial goals. 0:05:01.520 --> 0:05:03.600 And that might mean buying in a dip, it could 0:05:03.640 --> 0:05:05.840 mean selling into a dip. Um. It all really depends 0:05:05.880 --> 0:05:08.800 on what your specific and unique goals are and focus 0:05:08.839 --> 0:05:10.200 on that because you're not going to be able to 0:05:10.200 --> 0:05:11.960 predict the market moves and you're not gonna be able 0:05:12.000 --> 0:05:15.159 to control the market moves, um, So better to just 0:05:15.200 --> 0:05:16.919 focus on what you know, which is what do you 0:05:16.960 --> 0:05:19.320 need your assets to do for you and how can 0:05:19.320 --> 0:05:23.840 you position them for the best best long term success. Canny, 0:05:23.880 --> 0:05:26.400 think about global energy here, are you a buyer. We've 0:05:26.440 --> 0:05:29.320 got oil. It's off a little bit today, as everything is, 0:05:29.360 --> 0:05:31.800 but generally oil has been had a nice run up here. 0:05:33.200 --> 0:05:35.080 We do like it, and you know, we love natural 0:05:35.120 --> 0:05:38.640 resources as as sort of a one to tail went 0:05:38.680 --> 0:05:41.359 for portfolios. Number one, you get that equity beta and 0:05:41.360 --> 0:05:44.280 as I said earlier, we're positive on equities. Um, we're 0:05:44.279 --> 0:05:47.760 constructive on US equities in particular. So with that as 0:05:47.800 --> 0:05:49.960 a as a backdrop, we like energy stocks. And the 0:05:50.040 --> 0:05:53.000 second thing is, as I mentioned before, inflation are we 0:05:53.080 --> 0:05:56.560 anticipate coming off the boil in the second half, but 0:05:56.640 --> 0:05:59.320 the risk is that we're wrong, and if we are 0:05:59.400 --> 0:06:02.320 in a much more persistent inflationary environment, you do tend 0:06:02.360 --> 0:06:06.360 to get good inflation protection out of natural resource equities, 0:06:06.400 --> 0:06:09.040 So we like those as part of a diversified portfolio. 0:06:09.800 --> 0:06:11.560 Katie Nixon, thank you so much for joining us. We 0:06:11.640 --> 0:06:15.039 really appreciate getting your thoughts, getting your perspective. Katie Nixon, 0:06:15.080 --> 0:06:18.719 she's a c I O of wealth management at Northern 0:06:18.760 --> 0:06:22.800 Trust's Northern Trust. They're based in Chicago, and I'll tell 0:06:22.839 --> 0:06:27.279 you they're one of the good long term deep money 0:06:27.320 --> 0:06:29.839 managers out there in the Midwest. When you've got to Chicago, 0:06:29.920 --> 0:06:36.080 you have to get a meeting to get It's unbelievable 0:06:36.160 --> 0:06:40.040 take on this market, for sure, especially as we bounce 0:06:40.120 --> 0:06:43.479 a little bit back higher. Right now, we're UM down 0:06:43.760 --> 0:06:47.080 two point three percent little less so UM we have 0:06:47.640 --> 0:06:51.520 had a rough morning today, but it is still deeply, 0:06:51.640 --> 0:06:58.440 deeply in the red. Now I want to get to 0:06:58.880 --> 0:07:01.760 well coast. I'll say. He is the CEO and founder 0:07:01.800 --> 0:07:07.920 of Biotricity, and they UM are trying to improve healthcare 0:07:08.000 --> 0:07:12.440 by developing basically digital solutions aiding a chronic disease prevention 0:07:12.480 --> 0:07:14.679 and management while cost You know, I was thinking about 0:07:14.680 --> 0:07:17.920 your company and you can uh tell us more about it, 0:07:18.000 --> 0:07:21.720 I guess in your answer, but it daught on me. Um. 0:07:21.760 --> 0:07:24.680 I've always had this kind of negative view of the 0:07:24.760 --> 0:07:30.080 metaverse or a future living in virtual reality UM from 0:07:30.080 --> 0:07:34.480 movies like Wally and Uh and Uh what's that one 0:07:34.480 --> 0:07:38.160 with Bruce Willis where he UM plays a cop in 0:07:38.200 --> 0:07:41.240 the metaverse. In any case, I always have thought it 0:07:41.240 --> 0:07:44.720 would be unhealthy. But now that I'm thinking about your country, 0:07:44.920 --> 0:07:48.280 your company, it seems like it could be healthier living 0:07:48.280 --> 0:07:51.400 in the metaverse. What do you think? No, it's a 0:07:51.480 --> 0:07:54.440 it's an excellent point. Um. I I always thought about 0:07:54.440 --> 0:07:57.840 that myself in terms of, you know, getting so connected 0:07:57.840 --> 0:08:00.120 and being completely integrated, and then how do we how 0:08:00.120 --> 0:08:02.360 do we take care of ourselves if we're you know, 0:08:02.600 --> 0:08:05.680 sipping smoothies and and doing all of that, and uh, 0:08:05.720 --> 0:08:09.760 you know, I think that as we've seen through the pandemic, 0:08:10.120 --> 0:08:11.960 people have gotten a lot more engaged. I mean the 0:08:11.960 --> 0:08:15.560 direction was already there. We were getting into more connected healthcare, 0:08:15.920 --> 0:08:19.120 but there was an unwillingness from individuals to engage, read 0:08:19.160 --> 0:08:22.360 instructions and figure that out, and that got all accelerated. 0:08:22.400 --> 0:08:24.280 So I really think that as long as we as 0:08:24.320 --> 0:08:28.560 a as, uh you know, individuals as companies continue to 0:08:28.640 --> 0:08:33.240 innovate on this idea of digital tracking home based labs, 0:08:33.320 --> 0:08:35.880 but make sure that it's clinically relevant, like it's actually 0:08:36.240 --> 0:08:40.720 not lifestyle but really rooted and based on good science, 0:08:41.200 --> 0:08:43.360 then we can actually get that insight. And I think 0:08:43.360 --> 0:08:47.280 that the consumption of care, for for basic episodic visits, 0:08:47.360 --> 0:08:49.959 for general care is going to happen more and more 0:08:50.000 --> 0:08:53.120 in the home where individuals are engaged. And then they're 0:08:53.120 --> 0:08:57.040 going to go in for treatment, um, into the into 0:08:57.040 --> 0:08:59.760 the providers or into the hospital. So first of all 0:08:59.800 --> 0:09:02.640 them Bruce Willis movie, I was thinking of a Surrogates 0:09:02.679 --> 0:09:06.079 but in this and while you know, um, we didn't 0:09:06.080 --> 0:09:09.400 do anything. People in those movies and those fictional uh 0:09:09.480 --> 0:09:11.760 you know future forecast did nothing. And you're right. During 0:09:11.760 --> 0:09:14.199 the pandemic, people did a lot more. Paul for example, 0:09:14.240 --> 0:09:17.800 got a Peloton bike and was riding every day. Um. 0:09:17.840 --> 0:09:19.640 A lot of people were doing trying to figure out 0:09:19.679 --> 0:09:22.160 ways to do exercise and ended up doing even more 0:09:22.360 --> 0:09:25.840 in lockdown than they would have before. But what kind 0:09:25.880 --> 0:09:29.680 of solutions are you able to provide now walks in 0:09:29.800 --> 0:09:33.760 terms of for example, health monitoring solutions. What what can 0:09:33.880 --> 0:09:39.000 biotricity give us? Great questions. So you know, we started 0:09:39.000 --> 0:09:42.160 out we had the diagnostic product which was really available 0:09:42.400 --> 0:09:45.199 for high risk of patents and so and when I 0:09:45.240 --> 0:09:47.160 talk about high risk pations, I'm talking about patients that 0:09:47.160 --> 0:09:49.400 can have a heart attack or stroke. Uh. And you 0:09:49.440 --> 0:09:52.880 don't want them basically sitting at home, uh, waiting for 0:09:53.160 --> 0:09:55.240 the data to be collected and then returned back and 0:09:55.280 --> 0:09:57.600 downloaded because you're worried about something is going to happen. 0:09:57.600 --> 0:09:59.800 So that was our first product, and it's a smart 0:09:59.840 --> 0:10:01.440 to ice and so when you put it onto a 0:10:01.480 --> 0:10:04.480 patient and you send them home, UH, it'll it'll look 0:10:04.520 --> 0:10:06.400 for the data and when it detects an emergence here 0:10:06.400 --> 0:10:10.240 and anomaly, it actually alerts your doctrine gets you back 0:10:10.280 --> 0:10:13.320 into the hospital. It's like a bracelet or a wearable 0:10:13.320 --> 0:10:16.200 that detects like it doesn't e c G and detect 0:10:16.280 --> 0:10:19.959 your pulse and correct. It's a small little advice of 0:10:20.559 --> 0:10:22.480 of a mouse and it hangs around your neck and 0:10:22.480 --> 0:10:25.719 and and and makes contact with your skin. And that 0:10:25.800 --> 0:10:29.400 device uh saves lives every day. And then we've taken 0:10:29.440 --> 0:10:32.400 that technology and we've simplified it in two products, one 0:10:32.400 --> 0:10:36.040 which was just FC cleared last week, which is a 0:10:36.160 --> 0:10:39.560 patch that gets connected and collects your ECG uh and 0:10:39.559 --> 0:10:44.439 and accelerates and your your diagnostic response time. So it's 0:10:44.440 --> 0:10:48.000 a halter product but slightly highly condensed. And then we 0:10:48.040 --> 0:10:51.800 have a consumer product which is collecting your your e 0:10:51.920 --> 0:10:55.040 c G long term for weeks, months, years, as long 0:10:55.080 --> 0:10:58.120 as you're wearing it. And this is really good for bikes, bikers, 0:10:58.200 --> 0:11:01.000 is really good for individuals who had an issue but 0:11:01.040 --> 0:11:04.559 they're fine, now, but they want to track themselves. Uh, 0:11:05.080 --> 0:11:08.720 really a lifestyle play. So is this you know, I 0:11:08.720 --> 0:11:11.959 guess the digitization, if you will, of healthcare, is that 0:11:12.040 --> 0:11:15.800 going to drive costs down? It doesn't every other industry. 0:11:15.840 --> 0:11:19.960 Good point, now, excellent questions. So I would say, you know, 0:11:20.040 --> 0:11:24.040 seventy cents of every dollar in the United States is 0:11:24.080 --> 0:11:27.480 spent on chronic conditions. And so we've been seeing a 0:11:27.760 --> 0:11:31.800 huge movement in telemedicine, right, But telemedicine is episodic care. 0:11:32.120 --> 0:11:34.960 It's thirty cents on the dollar. So the real issue 0:11:35.040 --> 0:11:37.440 is exactly what you're talking about, right. The people who 0:11:37.520 --> 0:11:40.880 are sitting at home, they're not exercising, they're not engaging. 0:11:40.920 --> 0:11:42.440 They have to go in and out of the doctor's 0:11:42.520 --> 0:11:45.199 hospital all the time, people with cardiac issues, people who 0:11:45.240 --> 0:11:48.240 were servicing at biotric City, and we're focused on and 0:11:48.280 --> 0:11:51.480 the reason is most of these individuals don't actually have 0:11:51.640 --> 0:11:55.640 technology available to them to get insight. So they get 0:11:55.679 --> 0:11:57.960 really on it. The doctor says, you're you know, this 0:11:58.040 --> 0:12:00.600 is gonna be a problem. You really have to do this, 0:12:00.679 --> 0:12:03.280 and for a week or two weeks the self manage. 0:12:03.679 --> 0:12:05.360 But because they have no data, they have no device, 0:12:05.440 --> 0:12:07.760 they have no technology to tell them that there it's 0:12:07.760 --> 0:12:10.880 actually doing something. They drop off the wagon and that's 0:12:11.400 --> 0:12:13.360 what we're doing. And and to your point, I think 0:12:13.400 --> 0:12:16.400 that's really going to drive cost downs. But we need 0:12:16.440 --> 0:12:22.160 to continue this trend. So is is this the again 0:12:22.240 --> 0:12:25.560 kind of some of the telemedicine. Is that just a 0:12:25.559 --> 0:12:27.920 function of the pandemic or is this a big trend 0:12:27.920 --> 0:12:31.280 that's going to continue. So I think telemedicine is going 0:12:31.320 --> 0:12:34.480 to get bifurcated. So part of it is going to stay. 0:12:34.559 --> 0:12:36.480 So you know, the people who have a fluid that 0:12:36.520 --> 0:12:39.480 it's convenient and whatnot, but I think there'll be a 0:12:39.559 --> 0:12:42.600 drop there and then they're going to be telemedicine for 0:12:42.760 --> 0:12:46.400 chronic patients. The problem with chronic patients is, you know, 0:12:46.679 --> 0:12:49.360 you need blood work, you need diagnostics, you need an 0:12:49.360 --> 0:12:53.240 actual test. I mean you cannot tell a cardiac patient, 0:12:53.280 --> 0:12:55.559 I you know, are you actually having a rhythmia or 0:12:55.640 --> 0:12:59.000 not if you're feeling complications without running some sort of test. 0:12:59.320 --> 0:13:02.800 And that's a companies like us have to continue to 0:13:02.840 --> 0:13:05.480 innovate and provide those technologies so that you can get 0:13:05.520 --> 0:13:08.800 that data integrated with telemedicine and provide here. And that's 0:13:08.840 --> 0:13:11.280 that seventy cents I'm talking about. All right, that's what's 0:13:11.320 --> 0:13:13.120 going to move the needle. All right, will cause, thank 0:13:13.160 --> 0:13:15.199 you so much. We appreciate a walk us all Sadiq, 0:13:15.600 --> 0:13:21.520 CEO and founder of Biotricity talking about the future of medicine. 0:13:22.840 --> 0:13:24.920 You know, one of the key topics that Matt and 0:13:24.960 --> 0:13:27.679 I like to stay on top of is the global 0:13:27.679 --> 0:13:31.440 supply chain challenges out there. Uh, and they are in 0:13:31.520 --> 0:13:33.880 fact global and the impact all of us really in 0:13:33.920 --> 0:13:37.199 so many different ways, from going to the supermarket to 0:13:37.400 --> 0:13:41.920 going to the card dealer, lots of ways to experience 0:13:42.000 --> 0:13:45.440 the challenges facing the global supply chain. And we have 0:13:45.480 --> 0:13:47.680 a great voice to help us get a sense of 0:13:47.720 --> 0:13:50.760 what's going on out there. That is Geene Sharroka, Executive 0:13:50.800 --> 0:13:53.520 Director of the Port of Los Angeles. And again on 0:13:53.559 --> 0:13:55.959 my Bloomberg screen, one of my many Bloomberg screens in 0:13:56.000 --> 0:13:58.240 front of me, I have map Go and I'm looking 0:13:58.280 --> 0:14:00.760 at the uh uh you know, all the ships that 0:14:00.760 --> 0:14:02.640 are at sea and kind of where they're kind of 0:14:02.679 --> 0:14:05.720 anchored and uh, certainly the Port of Los Angeles is 0:14:05.960 --> 0:14:09.760 um the busiest container port in North America. So this 0:14:09.840 --> 0:14:12.400 is a great opportunity. Gene, thanks so much for joining us. 0:14:12.400 --> 0:14:14.720 I know you're super busy, you and all your folks 0:14:14.800 --> 0:14:17.640 there at the port here. Uh since the last time 0:14:17.640 --> 0:14:19.080 we spoke to you, I would say probably you know, 0:14:19.080 --> 0:14:20.880 three or four weeks ago. Give us a sense of 0:14:21.440 --> 0:14:24.640 kind of where we are as a nation in terms 0:14:24.720 --> 0:14:29.560 of our supply chain logistics. Well, good morning, Paul and Matt, 0:14:29.640 --> 0:14:32.080 and thanks for having me back on. Since we last 0:14:32.120 --> 0:14:34.760 spoke when I visited New York in December, we have 0:14:35.040 --> 0:14:39.560 seen some improvement. Overall, imports on the docks in Los 0:14:39.560 --> 0:14:42.520 Angeles have been cut by half meeting. They're moving out 0:14:42.560 --> 0:14:46.280 to the marketplace here domestically, and those aging containers that 0:14:46.320 --> 0:14:48.760 we had targeted during the fourth quarter to move those 0:14:48.800 --> 0:14:51.680 out of the way are down by nearly two thirds. 0:14:52.160 --> 0:14:54.960 We're still struggling a little bit with the amount of 0:14:54.960 --> 0:14:58.800 time containers sit at the terminal on the street waiting 0:14:58.800 --> 0:15:02.320 for warehouse space and coming back to the port. That's 0:15:02.320 --> 0:15:04.440 been a difficult time. But with all these imports we've 0:15:04.480 --> 0:15:08.000 pushed out, now we're starting to see those empty containers return. 0:15:08.120 --> 0:15:10.280 So our focus has got to be loading up as 0:15:10.280 --> 0:15:13.760 many of these as possible for US exporters and pushing 0:15:13.760 --> 0:15:15.960 out the rest of the empties for the next round 0:15:16.360 --> 0:15:19.200 of import from Asia. We've got about a hundred and 0:15:19.280 --> 0:15:23.600 three ships on the way departing Asia and headed towards 0:15:23.680 --> 0:15:26.560 the ports here in southern California, but only about a 0:15:26.680 --> 0:15:30.400 third of those are ten thousand container units and larger 0:15:30.480 --> 0:15:33.480 the traditional vessels that we have calling at the port. 0:15:33.800 --> 0:15:37.120 The balance are those newcomers, the charter hires and the 0:15:37.200 --> 0:15:40.760 one way ships trying to augment for additional capacity here 0:15:40.760 --> 0:15:44.400 ahead of water New year. How long do you think 0:15:44.400 --> 0:15:48.640 it's gonna be geane until we get back to normal? What? What? 0:15:48.760 --> 0:15:52.240 And what would you consider that I think it's going 0:15:52.280 --> 0:15:55.320 to be sometime. A normal has so many variables in 0:15:55.360 --> 0:15:59.360 that equation, from how merchandisers are putting in orders and factories, 0:15:59.400 --> 0:16:02.880 what factory can do through all macron, keeping staff on 0:16:03.040 --> 0:16:05.320 deck to produce the goods that we want to buy, 0:16:05.480 --> 0:16:08.520 making sure we have enough vessel capacity in the right places, 0:16:08.560 --> 0:16:12.480 and utilizing that capacity. One of the areas we're focused 0:16:12.480 --> 0:16:16.600 on most right now, Paul, is the latent capacity available 0:16:16.640 --> 0:16:19.240 to us here at the Port of Los Angeles. Fifty 0:16:19.440 --> 0:16:24.720 five of all available truck gates go unused every day, 0:16:24.760 --> 0:16:27.760 and we have an overhang of about thirty in our 0:16:27.840 --> 0:16:31.400 railroad capacity. We've got to keep moving this cargo out, 0:16:31.440 --> 0:16:34.160 absorb more that's on the water, and take advantage of 0:16:34.200 --> 0:16:37.400 squeezing every hour of efficiency we can through the port complex. 0:16:37.760 --> 0:16:39.960 Geane talked to us about labor. A lot of folks 0:16:40.080 --> 0:16:44.640 have suggested that, you know, there's just aren't enough folks 0:16:44.720 --> 0:16:47.760 to unload the containers, and then there aren't enough truckers 0:16:48.000 --> 0:16:51.960 to you know, get them out into, uh, the interior 0:16:52.000 --> 0:16:55.120 of the country. How do you think about the labor 0:16:55.200 --> 0:16:59.120 situation within your you know, ecosystem there at the port. 0:17:00.240 --> 0:17:03.120 Everybody who wants work right now still has it is 0:17:03.160 --> 0:17:06.439 that caravan a cargo is coming across the Pacific at 0:17:06.680 --> 0:17:10.960 still high levels of volume. Three segments of labor the 0:17:11.040 --> 0:17:14.120 dock workers, the International Longshore and Warehouse Union. They've been 0:17:14.160 --> 0:17:16.760 averaging six days a week on the job since the 0:17:16.800 --> 0:17:20.800 pandemic began back in March of They're going all out. 0:17:20.920 --> 0:17:25.000 Productivity per ship basis is the best in the industry. Second, 0:17:25.000 --> 0:17:28.160 of those truckers that you mentioned, they have hours of service, 0:17:28.320 --> 0:17:30.479 can't drive more than eleven hours a day, and if 0:17:30.520 --> 0:17:34.840 they drive consecutively, they've got to take some time off. Nationwide, 0:17:34.880 --> 0:17:39.639 the American Trucking Association says that we're eighty thousand drivers short, 0:17:39.920 --> 0:17:42.640 and I would represent here in southern California, we could 0:17:42.680 --> 0:17:46.760 use another three to four thousand port drayage drivers. Then 0:17:46.800 --> 0:17:50.480 there's the warehousing space. We've got two billion square feet 0:17:50.520 --> 0:17:52.639 under roof from the shores of the Pacific, outs of 0:17:52.680 --> 0:17:55.920 the desert region in southern California, and we're about eight 0:17:55.960 --> 0:18:00.000 thousand workers short right now, four hundred thousand ware hackers 0:18:00.000 --> 0:18:04.119 warehouse workers short nationwide. On these last two segments, they 0:18:04.119 --> 0:18:06.679 tend to be unrepresented, and we have to find a 0:18:06.720 --> 0:18:11.000 way to attract, recruit, and retain folks make these professions. Again, 0:18:11.840 --> 0:18:13.879 I know a great way to attract people to jobs 0:18:14.600 --> 0:18:17.840 that pay them more. Is that absolutely? Is that not 0:18:17.920 --> 0:18:21.600 part of the equation gene. It has to be thinking 0:18:21.640 --> 0:18:25.080 about how we pay labor wage and benefits, what you 0:18:25.080 --> 0:18:27.879 can do to attract folks into this industry and not 0:18:28.040 --> 0:18:30.399 wait until it's crunch time. Like we've seen over the 0:18:30.400 --> 0:18:33.439 past eighteen months, the industry has really got to focus 0:18:33.440 --> 0:18:35.000 on this, and some of the work that we're doing 0:18:35.040 --> 0:18:36.879 at the federal level with the C suite and the 0:18:36.920 --> 0:18:39.440 private sector is leading us down that path, but we've 0:18:39.440 --> 0:18:42.960 got to work double time alright. So Jean, as you 0:18:43.000 --> 0:18:44.320 think about it, I mean, you've been in this game 0:18:44.359 --> 0:18:48.040 a long time. Is the just in time inventory strategy 0:18:48.080 --> 0:18:50.320 that we've all grown up with is that being rethought? 0:18:50.320 --> 0:18:53.400 Do you think it has to be? We've all thought 0:18:53.440 --> 0:18:56.240 about lee and keeping inventory levels low. They are right 0:18:56.240 --> 0:18:58.720 now in the retail sector the lowest they've been in 0:18:58.800 --> 0:19:02.439 the decade since two thousand eleven. We've got to make 0:19:02.480 --> 0:19:04.600 sure that we have a good combination of where we 0:19:04.680 --> 0:19:09.119 can reshore manufacturing or near short in addition to having 0:19:09.400 --> 0:19:13.960 some certainty placed back into the international supply chain simply 0:19:14.040 --> 0:19:17.280 buying products just in case. So we weren't the company 0:19:17.320 --> 0:19:22.000 that was the paper example, tissue and toilet paper last 0:19:22.040 --> 0:19:25.840 year seemed to really gum up the works and folks 0:19:25.840 --> 0:19:27.960 are putting in orders and factories who are working in 0:19:28.080 --> 0:19:30.399 capacity now for the better part of a year and 0:19:30.440 --> 0:19:34.480 a half. So streamlining this, evaluating it at the company level, 0:19:34.600 --> 0:19:36.639 but also as a nation, and that's part of what 0:19:36.720 --> 0:19:39.520 we're doing and working with Port Envoy John Paccary, the 0:19:39.640 --> 0:19:43.120 National Economic Council, led by Brian Eas and others. Hey Geen, 0:19:43.200 --> 0:19:46.000 thanks so much for taking a time. We really appreciate 0:19:46.000 --> 0:19:49.000 getting your perspective. You are absolutely on the front lines 0:19:49.440 --> 0:19:52.879 of this global supply chain issue. With Gene Siroka, executive 0:19:52.880 --> 0:19:56.680 director at the Port of Los Angeles, the busiest container 0:19:56.760 --> 0:20:04.040 port in North America. You know a lot of folks 0:20:04.080 --> 0:20:06.119 are saying, hey, we need a ten percent, a fifteen 0:20:06.200 --> 0:20:08.959 or twenty percent correction in the market. It looks like 0:20:09.200 --> 0:20:11.199 where you go, here you go. This is what it 0:20:11.200 --> 0:20:14.960 looks like, Charlotte. It is the worst one day sell 0:20:15.000 --> 0:20:20.159 off for the SMP five since October twenty, which feels 0:20:20.160 --> 0:20:22.280 like it was so long ago. And how does Matt 0:20:22.320 --> 0:20:25.399 Miller know that? Because the s I N S function 0:20:25.480 --> 0:20:29.440 on the Bloomberg terminal tells you so, I will say, 0:20:29.440 --> 0:20:32.600 it's an internal function? Is it so only we can 0:20:32.640 --> 0:20:35.120 see it? I did not know that. If you ever 0:20:35.200 --> 0:20:38.199 need a quote on S I N S, I just 0:20:38.280 --> 0:20:40.240 message me. All right, let's check in with a professional 0:20:40.359 --> 0:20:42.719 on how we should be thinking about this. Jill Garby, 0:20:42.800 --> 0:20:46.840 she's a senior VP and senior wealth strategist at Huntington's 0:20:47.040 --> 0:20:50.680 National Bank. Jill, thanks so much for joining us. How 0:20:50.720 --> 0:20:53.480 do you how do you think about days like today, 0:20:54.240 --> 0:20:56.119 weeks like we've had over the last few weeks. How 0:20:56.119 --> 0:20:59.680 do you think about that? What are you telling your clients? Well, hello, 0:20:59.760 --> 0:21:02.560 Matt Paul, it's great to be with you. We look 0:21:02.600 --> 0:21:05.199 at this is maybe the best buying opportunity over the 0:21:05.280 --> 0:21:09.600 last two years. So we're coaching our clients to be patient, 0:21:10.359 --> 0:21:13.000 get the bio list ready. Our equity team certainly has 0:21:13.040 --> 0:21:16.840 their by list ready. And for those individuals who are 0:21:16.880 --> 0:21:19.320 sitting on a lot of cash, and as a top 0:21:19.440 --> 0:21:22.840 national bank, we're so fortunate to work with individual clients, 0:21:23.200 --> 0:21:25.880 many of whom are business owners. They've been liquidating all 0:21:26.000 --> 0:21:28.960 our portions of their business, others who have been liquidating 0:21:29.000 --> 0:21:32.560 real estate. You see this as a tremendous opportunity to 0:21:32.600 --> 0:21:37.080 start working that cash in. What do you think we're 0:21:37.080 --> 0:21:40.040