1 00:00:05,800 --> 00:00:12,680 Speaker 1: Welcome to Trance. I'm Joel Webber and I'm Eric Belcher. Eric, 2 00:00:12,800 --> 00:00:15,000 Speaker 1: I am not alone in my love for you. I 3 00:00:15,040 --> 00:00:16,840 Speaker 1: have to share my love with you with other people, 4 00:00:17,280 --> 00:00:18,960 Speaker 1: and that Bloomberg. One of the people have to share 5 00:00:19,000 --> 00:00:21,919 Speaker 1: my love with Thank you, is Scarlet Food, who you 6 00:00:22,000 --> 00:00:25,360 Speaker 1: co host a show on Bloomberg TV with called E 7 00:00:25,440 --> 00:00:28,840 Speaker 1: T F. I Q. Yeah, And for those who don't 8 00:00:28,840 --> 00:00:31,720 Speaker 1: know Bloomberg TV, the shows on every Wednesday at one pm. 9 00:00:31,720 --> 00:00:34,199 Speaker 1: It's only half an hour a week, but it is weekly. 10 00:00:34,760 --> 00:00:38,520 Speaker 1: And like you, I mean, I'm in the weeds person 11 00:00:38,960 --> 00:00:41,640 Speaker 1: and you guys are a little more mainstream. You're the 12 00:00:41,680 --> 00:00:45,519 Speaker 1: Tony Romo to your Jim Nance. Yeah, exactly. That works well. 13 00:00:45,560 --> 00:00:47,400 Speaker 1: You know, Scarlets like a kindred spirit of mine though, 14 00:00:47,400 --> 00:00:49,800 Speaker 1: because she's not full. She's not an E T F junk, 15 00:00:50,440 --> 00:00:52,920 Speaker 1: you're like full E T F. Absolutely, she's like half 16 00:00:52,920 --> 00:00:55,360 Speaker 1: E T. I've pulled both you guys in pretty hard, 17 00:00:55,480 --> 00:00:57,280 Speaker 1: Like there's some things you guys will pop out and 18 00:00:57,600 --> 00:00:59,880 Speaker 1: I'm like, yeah, she's given in a little bit. You're 19 00:01:00,040 --> 00:01:02,120 Speaker 1: three quarters nerds. I'd say at this point. You're not 20 00:01:02,200 --> 00:01:04,200 Speaker 1: like me and Todd or or you know that gang, 21 00:01:04,240 --> 00:01:06,880 Speaker 1: but you're you're getting there. Um. But you know what's 22 00:01:06,920 --> 00:01:10,759 Speaker 1: interesting is the show is nearing its hundredth episode and congratulations, 23 00:01:11,040 --> 00:01:14,120 Speaker 1: thank you. And there's a lot of crossover with this podcast, 24 00:01:14,160 --> 00:01:16,240 Speaker 1: the show, and also my research. My main job is 25 00:01:16,240 --> 00:01:19,280 Speaker 1: writing research, but those it's funny, like the guests on 26 00:01:19,280 --> 00:01:21,440 Speaker 1: the show will say something and it will get my 27 00:01:21,520 --> 00:01:23,840 Speaker 1: brain going and then I might use it here or 28 00:01:23,880 --> 00:01:26,559 Speaker 1: in the research. And there's just nice synergy between all 29 00:01:26,640 --> 00:01:28,880 Speaker 1: of these activities. UM and E t F i Q 30 00:01:29,040 --> 00:01:31,120 Speaker 1: I think is a big part of it. And I think, um, 31 00:01:31,160 --> 00:01:33,280 Speaker 1: it's different than this show because like, if I say 32 00:01:33,280 --> 00:01:35,560 Speaker 1: something really crazy right now, we can just tell Magnus 33 00:01:35,600 --> 00:01:38,320 Speaker 1: to edit it out. But on TV and there's no Yeah, 34 00:01:38,400 --> 00:01:40,840 Speaker 1: they're a live Yeah. If you drop like an you know, 35 00:01:40,840 --> 00:01:42,840 Speaker 1: an S bomb or something, it's so it's that's it. 36 00:01:43,040 --> 00:01:45,080 Speaker 1: So in the spirit of that, we're gonna have Scarlett 37 00:01:45,120 --> 00:01:48,280 Speaker 1: come on today and actually talk about some of the 38 00:01:48,360 --> 00:01:51,040 Speaker 1: learnings that she's had about E t F S and 39 00:01:51,080 --> 00:01:54,440 Speaker 1: also some highlights from the show. Yeah, I mean, Scarlett 40 00:01:54,840 --> 00:01:57,360 Speaker 1: is so good at broadcast. I can tell you from 41 00:01:57,400 --> 00:02:00,080 Speaker 1: somebody who's not in the broadcasting world, and neither of 42 00:02:00,160 --> 00:02:02,840 Speaker 1: us are, but she is and it's a lot harder 43 00:02:02,840 --> 00:02:05,960 Speaker 1: than it looks, but most broadcasters like Scarlett make it 44 00:02:05,960 --> 00:02:08,240 Speaker 1: look easy the good ones, and so it has been 45 00:02:08,280 --> 00:02:10,600 Speaker 1: a pleasure working with her. She's been very generous to 46 00:02:10,680 --> 00:02:13,160 Speaker 1: just even let me hang around and be on the 47 00:02:13,160 --> 00:02:15,280 Speaker 1: show every week. And we thought we'd go over some 48 00:02:15,400 --> 00:02:18,480 Speaker 1: highlights of the first sort of one episodes that that 49 00:02:18,560 --> 00:02:19,960 Speaker 1: stuck out to both of us. I get to watch 50 00:02:20,040 --> 00:02:22,000 Speaker 1: it from time to time, but I've never actually asked 51 00:02:22,040 --> 00:02:26,120 Speaker 1: you guys to to populate your favorite segments. I'm really 52 00:02:26,160 --> 00:02:27,720 Speaker 1: looking forward to this one, and as we get into 53 00:02:27,720 --> 00:02:29,720 Speaker 1: some of these clips, just know that from all different segments. 54 00:02:29,760 --> 00:02:31,280 Speaker 1: But the way the show is kind of designed is 55 00:02:31,600 --> 00:02:33,560 Speaker 1: starts with like a look at the flows, and then 56 00:02:33,560 --> 00:02:36,560 Speaker 1: the A block. The first one is a guest who's 57 00:02:36,520 --> 00:02:38,480 Speaker 1: sort of like how to play something. Bloomberg News is 58 00:02:38,520 --> 00:02:39,720 Speaker 1: on there, so a lot of the guests we've had 59 00:02:39,720 --> 00:02:41,760 Speaker 1: on are also on that show. Um. Then we have 60 00:02:41,760 --> 00:02:44,080 Speaker 1: Passive Aggressive, which is where we look at the shots 61 00:02:44,120 --> 00:02:46,919 Speaker 1: fired and the active and passive battle. And then the 62 00:02:47,000 --> 00:02:48,919 Speaker 1: last segment is called the drill down, where we take 63 00:02:48,919 --> 00:02:50,959 Speaker 1: one e TF throw it on the lab. I give 64 00:02:51,000 --> 00:02:52,919 Speaker 1: my take, and then the issuers on there to sort 65 00:02:52,919 --> 00:02:55,480 Speaker 1: of defend and get into, you know, the E t 66 00:02:55,600 --> 00:03:02,119 Speaker 1: F and Y it's valuable little et dissection. This time 67 00:03:02,120 --> 00:03:07,359 Speaker 1: on Trillions Showtime with Scarlet Food. Scarlett, Welcome to Trilliance. Thanks. 68 00:03:07,400 --> 00:03:09,160 Speaker 1: I've been looking forward to this because I always hear 69 00:03:09,200 --> 00:03:12,079 Speaker 1: about trillions from Eric on Mondays we have our conference 70 00:03:12,080 --> 00:03:14,120 Speaker 1: call for E t F i Q, and he's always 71 00:03:14,120 --> 00:03:15,840 Speaker 1: making references to trillions. So now I get to be 72 00:03:15,880 --> 00:03:18,160 Speaker 1: a part of it. For the record, I'm still waiting 73 00:03:18,200 --> 00:03:19,960 Speaker 1: for my invite to E t F i Q, but 74 00:03:20,000 --> 00:03:22,000 Speaker 1: you know I won't hold that against either of you. Well, 75 00:03:22,040 --> 00:03:24,079 Speaker 1: now that we've done this, I think that's the next No, 76 00:03:24,200 --> 00:03:27,720 Speaker 1: don't don't. Let's let's keep it this way right. So, so, Scarlett, 77 00:03:27,880 --> 00:03:30,320 Speaker 1: how did you discover the E t F Because you've 78 00:03:30,320 --> 00:03:32,679 Speaker 1: been at Bloomberg longer than I've been at Bloomberg, I think, 79 00:03:33,120 --> 00:03:35,240 Speaker 1: And how did this come to be that you got 80 00:03:35,240 --> 00:03:37,360 Speaker 1: an interest in E t S. Well, I'd like to 81 00:03:37,440 --> 00:03:39,760 Speaker 1: use a number of different functions to track what's going 82 00:03:39,760 --> 00:03:41,520 Speaker 1: on in the stock market, and one of them is 83 00:03:41,840 --> 00:03:45,400 Speaker 1: most us for and it looks at the most actively 84 00:03:45,400 --> 00:03:48,840 Speaker 1: traded securities by value on any given day. And if 85 00:03:48,880 --> 00:03:51,840 Speaker 1: you don't screen out anything. If you don't filter out anything, 86 00:03:52,040 --> 00:03:53,640 Speaker 1: a bunch of E t F s are always at 87 00:03:53,640 --> 00:03:56,840 Speaker 1: the top, and you know, um, around the financial crisis, 88 00:03:57,360 --> 00:03:59,240 Speaker 1: it would be the same ones, the ones that bet 89 00:03:59,280 --> 00:04:02,760 Speaker 1: against the finance chols and double inverse against the financials. 90 00:04:02,840 --> 00:04:05,160 Speaker 1: And it was always kind of fascinating to me that 91 00:04:05,240 --> 00:04:06,720 Speaker 1: there were these e t F s and that they 92 00:04:06,720 --> 00:04:10,120 Speaker 1: were so heavily traded, and I was convinced that someone 93 00:04:10,160 --> 00:04:12,600 Speaker 1: was losing a ton of money. I'm sure they were. Um. 94 00:04:12,720 --> 00:04:15,080 Speaker 1: So I always had this idea that there's a lot 95 00:04:15,120 --> 00:04:16,640 Speaker 1: more going on in the E t F world than 96 00:04:16,680 --> 00:04:20,280 Speaker 1: we discussed, and every once a while we talked about it, 97 00:04:20,720 --> 00:04:23,720 Speaker 1: but most of the focus was on individual companies, and 98 00:04:24,440 --> 00:04:26,280 Speaker 1: at some point it seemed like we're missing the boat 99 00:04:26,320 --> 00:04:28,080 Speaker 1: if we didn't talk about E t F and we 100 00:04:28,120 --> 00:04:30,280 Speaker 1: only fixated on one or two companies. And how do 101 00:04:30,360 --> 00:04:33,440 Speaker 1: you discover Eric? How did I discover Eric? That's a 102 00:04:33,440 --> 00:04:36,200 Speaker 1: really good question. Um. At some point I think I 103 00:04:36,200 --> 00:04:38,000 Speaker 1: gave him a call to find out how some E 104 00:04:38,120 --> 00:04:41,280 Speaker 1: t F worked, and then he very he started talking. 105 00:04:42,560 --> 00:04:44,560 Speaker 1: But that's just like, oh, let me tell you about myself, 106 00:04:45,600 --> 00:04:52,000 Speaker 1: Jesus Christ. Yeah, Um, yeah, I remember I don't remember 107 00:04:52,000 --> 00:04:54,039 Speaker 1: the first time we met or what happened, but I 108 00:04:54,080 --> 00:04:56,440 Speaker 1: think I remember going on with you and Alex. You 109 00:04:56,480 --> 00:05:00,920 Speaker 1: guys used to host a show in the afternoon or Yeah, 110 00:05:00,920 --> 00:05:04,160 Speaker 1: Alex Steele and Um you were you guys were both 111 00:05:04,200 --> 00:05:06,400 Speaker 1: pretty into it, like you would ask me back, because 112 00:05:07,000 --> 00:05:09,800 Speaker 1: unless you're covering a company, it's very difficult to get 113 00:05:09,800 --> 00:05:12,640 Speaker 1: asked on Bloomberg TV unless you're fed person or a 114 00:05:12,640 --> 00:05:15,560 Speaker 1: company person. If you cover funds, it just doesn't come 115 00:05:15,600 --> 00:05:18,680 Speaker 1: into their mindset often. So I was, you know, kind 116 00:05:18,720 --> 00:05:21,000 Speaker 1: of the squeaky wheel, and some were more receptive than 117 00:05:21,040 --> 00:05:23,120 Speaker 1: others to having somebody come on talk E T S. 118 00:05:23,200 --> 00:05:26,120 Speaker 1: I think when E T S had, like um, when 119 00:05:26,120 --> 00:05:28,680 Speaker 1: there was a real problem in the market, I think 120 00:05:28,720 --> 00:05:32,039 Speaker 1: sometimes that's when you could really see because I would 121 00:05:32,040 --> 00:05:34,000 Speaker 1: come over the trading volume, and I think going over, 122 00:05:34,040 --> 00:05:36,440 Speaker 1: like you said, the trading volume started to sink into 123 00:05:36,440 --> 00:05:39,279 Speaker 1: people that while these things trade more than Microsoft, you know, 124 00:05:39,320 --> 00:05:41,599 Speaker 1: we really should incorporate them. So I I think I 125 00:05:41,680 --> 00:05:43,280 Speaker 1: kind of maybe sold you a little bit. You were 126 00:05:43,360 --> 00:05:45,560 Speaker 1: very nice to ask me back. Uh, you know, I 127 00:05:45,600 --> 00:05:50,800 Speaker 1: think even said come back weekly at one point exactly 128 00:05:50,800 --> 00:05:55,080 Speaker 1: what you said. So you start having an Eric on 129 00:05:55,240 --> 00:05:57,040 Speaker 1: what what did you What did you learn about E 130 00:05:57,080 --> 00:06:00,440 Speaker 1: T s um that it's a huge, vast world and 131 00:06:00,480 --> 00:06:03,360 Speaker 1: there are a lot of crazy acronyms, and people say 132 00:06:03,360 --> 00:06:05,800 Speaker 1: it in a way that you don't expect. So when 133 00:06:05,800 --> 00:06:08,200 Speaker 1: did that become normal for you? Because there's the thing 134 00:06:08,240 --> 00:06:09,839 Speaker 1: about the E T F thing that I felt like 135 00:06:10,000 --> 00:06:12,880 Speaker 1: was like all these things I didn't understand and didn't know, 136 00:06:13,000 --> 00:06:14,440 Speaker 1: and then all of a sudden it was like, oh, 137 00:06:14,800 --> 00:06:16,640 Speaker 1: maybe on the other side and I know more than 138 00:06:16,680 --> 00:06:18,960 Speaker 1: I thought I knew. Yeah, when when the acronyms start 139 00:06:19,000 --> 00:06:21,520 Speaker 1: making sense to you and when you can reel them off? 140 00:06:21,560 --> 00:06:25,440 Speaker 1: And you know, Eric has his three amigos right a 141 00:06:26,360 --> 00:06:31,279 Speaker 1: spy voo and it was the last one. Oh, let's 142 00:06:31,279 --> 00:06:34,520 Speaker 1: test your nerd them here spy voo And god, what 143 00:06:34,640 --> 00:06:36,920 Speaker 1: is the last one? I can't remebv i vv Yeah, 144 00:06:36,960 --> 00:06:41,359 Speaker 1: it's the three spfs. There's only three. I knew you 145 00:06:41,360 --> 00:06:44,000 Speaker 1: you were deeper, more deeper in than you thought. The 146 00:06:44,000 --> 00:06:46,600 Speaker 1: other the other day when she goes it was some 147 00:06:46,680 --> 00:06:49,840 Speaker 1: kind of a I think it was the price competitive, 148 00:06:50,680 --> 00:06:52,760 Speaker 1: the price ters ETF. She goes, this is a lot 149 00:06:52,839 --> 00:06:56,080 Speaker 1: like mote, and I'm like, you know, that's dropping it, Yeah, 150 00:06:56,560 --> 00:07:01,160 Speaker 1: dropping the knowledge. And also what's really amazing about Scarlett 151 00:07:01,240 --> 00:07:04,520 Speaker 1: is especially in the B block, which is called passive aggressive. 152 00:07:04,800 --> 00:07:06,440 Speaker 1: I came up with that name. By the way. It's 153 00:07:06,480 --> 00:07:09,880 Speaker 1: so perfect, I know, uh, And it's so perfect about 154 00:07:09,880 --> 00:07:12,760 Speaker 1: passive people coming on and you know they are there's 155 00:07:12,800 --> 00:07:18,120 Speaker 1: an aggressive undertone, but everything sticks to her brain, even 156 00:07:18,240 --> 00:07:20,200 Speaker 1: minute things, and she'll just figure out a way to 157 00:07:20,240 --> 00:07:22,600 Speaker 1: put it into this perfect sentence that comes right back 158 00:07:22,640 --> 00:07:25,240 Speaker 1: out and it's an amazing thing to watch. Decades of 159 00:07:25,280 --> 00:07:30,000 Speaker 1: TV training at work. Okay, so let's go through a 160 00:07:30,120 --> 00:07:33,040 Speaker 1: few of the different moments that you guys have had 161 00:07:33,040 --> 00:07:35,640 Speaker 1: on E t F, I Q and and contextualize them 162 00:07:36,000 --> 00:07:38,400 Speaker 1: so that there are some takeaways. So the first one 163 00:07:38,480 --> 00:07:41,120 Speaker 1: you picked, um, we picked up about four or five. 164 00:07:41,160 --> 00:07:44,120 Speaker 1: So you picked Ed Lopez talking about E s p O, 165 00:07:44,200 --> 00:07:45,840 Speaker 1: which is the E sports to E t F. Why'd 166 00:07:45,880 --> 00:07:49,280 Speaker 1: you pick this? Well, because thematic etms are fun and 167 00:07:49,480 --> 00:07:52,520 Speaker 1: they're what makes sense to people. It's hard to explain 168 00:07:52,560 --> 00:07:54,679 Speaker 1: a multi factor E t F to someone who doesn't 169 00:07:54,720 --> 00:07:56,120 Speaker 1: know what E t F s are. But if you 170 00:07:56,200 --> 00:07:59,520 Speaker 1: tell someone, hey, there's an there's an E t F 171 00:07:59,600 --> 00:08:02,000 Speaker 1: of that trades like a stock and it's made up 172 00:08:02,080 --> 00:08:05,840 Speaker 1: of all these companies that engage in or the business 173 00:08:05,880 --> 00:08:08,280 Speaker 1: of e sports and video games. People can get their 174 00:08:08,320 --> 00:08:10,240 Speaker 1: head around that. It's like, oh, it's a mutual fun 175 00:08:10,280 --> 00:08:13,200 Speaker 1: but it trades like a stock. Okay, that's interesting. The 176 00:08:13,200 --> 00:08:15,160 Speaker 1: thing with this, of course, is that you know, as 177 00:08:15,200 --> 00:08:17,840 Speaker 1: a parent of two boys and eric, you can relate. 178 00:08:18,160 --> 00:08:19,840 Speaker 1: You know, you see how much time your kids spent 179 00:08:19,920 --> 00:08:22,880 Speaker 1: on video games. So you're thinking, there's definitely huge business 180 00:08:22,920 --> 00:08:25,600 Speaker 1: prospects here. If you can isolate this segment of the 181 00:08:25,600 --> 00:08:27,640 Speaker 1: market and just make it its own product, this thing 182 00:08:27,680 --> 00:08:30,440 Speaker 1: will take off. You know. I think we're going towards 183 00:08:30,440 --> 00:08:32,880 Speaker 1: the interactive media or this idea of a metaverse where 184 00:08:32,880 --> 00:08:35,800 Speaker 1: people get their social entertainment and entertainment in general. There 185 00:08:35,840 --> 00:08:38,079 Speaker 1: might be perception problem, but a lot of the advisors 186 00:08:38,080 --> 00:08:41,440 Speaker 1: that we have talked to they have clients that have kids, 187 00:08:41,440 --> 00:08:43,760 Speaker 1: and they have kids themselves that are playing video games, 188 00:08:44,200 --> 00:08:47,079 Speaker 1: and so they really that the idea really resonates with them. 189 00:08:47,160 --> 00:08:50,000 Speaker 1: And also interesting on this one is a recurring theme, 190 00:08:50,000 --> 00:08:53,040 Speaker 1: which is trying to figure out when a product should 191 00:08:53,040 --> 00:08:56,000 Speaker 1: work and doesn't and and vice versa. So that's where 192 00:08:56,040 --> 00:08:58,680 Speaker 1: that came from. Because the video game ETF has just 193 00:08:58,760 --> 00:09:01,920 Speaker 1: been an incredible warmer, but the assets haven't followed. Like 194 00:09:02,000 --> 00:09:05,360 Speaker 1: with robotics and cybersecurity, the performances there and the numbers 195 00:09:05,400 --> 00:09:07,440 Speaker 1: are massive. I mean I looked this up before I 196 00:09:07,440 --> 00:09:09,640 Speaker 1: came on because I spent a lot of time prepping 197 00:09:09,960 --> 00:09:11,960 Speaker 1: everything so that I don't sound dumb or look dumb 198 00:09:11,960 --> 00:09:16,080 Speaker 1: on TV around podcasts. The video game industry was worth 199 00:09:16,160 --> 00:09:19,319 Speaker 1: one thirty seven point nine billion dollars. The global film 200 00:09:19,320 --> 00:09:21,760 Speaker 1: industry is worth a hundred thirty six billion dollars. So 201 00:09:21,880 --> 00:09:24,760 Speaker 1: video games is bigger business than global Hollywood. But we 202 00:09:24,800 --> 00:09:26,600 Speaker 1: don't treat it that way, we don't talk about it 203 00:09:26,640 --> 00:09:29,880 Speaker 1: that way. This is serious money. This is a serious business, 204 00:09:30,200 --> 00:09:34,079 Speaker 1: and yeah, it deserves And the biggest complaint I've heard 205 00:09:34,080 --> 00:09:36,760 Speaker 1: on Twitter from tweeting up questions of why is the 206 00:09:36,800 --> 00:09:39,280 Speaker 1: most advisors say I just can't have something with video 207 00:09:39,280 --> 00:09:41,640 Speaker 1: game in it on a client statement. That's why we 208 00:09:41,679 --> 00:09:44,680 Speaker 1: have to add that they're embarrassed about it. Yeah, career risk. 209 00:09:45,200 --> 00:09:47,560 Speaker 1: Career risk of advisors, as you can tell, drives a 210 00:09:47,559 --> 00:09:52,439 Speaker 1: lot of our contentment um speaking of esoteric and kind 211 00:09:52,440 --> 00:09:55,079 Speaker 1: of unique theme products. The next I picked this one, 212 00:09:55,120 --> 00:09:59,319 Speaker 1: which was John Bogel. We had yeah, rest in peace. 213 00:09:59,440 --> 00:10:02,280 Speaker 1: Um we at him on and he obviously talks a 214 00:10:02,320 --> 00:10:04,000 Speaker 1: lot about passive when he had when we had him on. 215 00:10:04,040 --> 00:10:06,880 Speaker 1: But I picked a clip here where he kind of 216 00:10:06,920 --> 00:10:09,800 Speaker 1: talks about some of these wacky theme ETFs and it's 217 00:10:09,880 --> 00:10:13,240 Speaker 1: fascinating he knows these things are launching, like these are 218 00:10:13,280 --> 00:10:15,559 Speaker 1: some really tiny products, and he was aware of this. 219 00:10:15,559 --> 00:10:18,679 Speaker 1: This was maybe a year ago. And when you get 220 00:10:18,720 --> 00:10:21,839 Speaker 1: into e t S and their rapid growth, it's become 221 00:10:21,960 --> 00:10:25,000 Speaker 1: kind of a well, certainly become a marketing business where 222 00:10:25,080 --> 00:10:27,640 Speaker 1: new ideas. You've seen the new funds that are coming out. 223 00:10:28,280 --> 00:10:32,760 Speaker 1: We now have one that is, let's see short retail 224 00:10:33,320 --> 00:10:39,280 Speaker 1: and long electronic marketing. Yeah, that's talk about the time 225 00:10:39,280 --> 00:10:42,000 Speaker 1: of the product of the times. And we've got the 226 00:10:42,040 --> 00:10:46,120 Speaker 1: Republican and the Democratic, a t S, drinkers, e t F, 227 00:10:46,200 --> 00:10:50,439 Speaker 1: the distillers, and where it ends nobody knows. I love 228 00:10:50,480 --> 00:10:53,040 Speaker 1: that he dropped the drinkers and distillers. That's the whiskey 229 00:10:53,040 --> 00:10:55,240 Speaker 1: E t F. The fact that Bogel even knows that 230 00:10:55,320 --> 00:10:59,160 Speaker 1: exists is fascinating because he is a legend and he's 231 00:10:59,200 --> 00:11:03,120 Speaker 1: that that saw so interesting insight into just how closely 232 00:11:03,240 --> 00:11:06,200 Speaker 1: watched watched it right. He had never lost a step 233 00:11:06,320 --> 00:11:08,480 Speaker 1: every time we interviewed him. He was acute as ever, 234 00:11:08,840 --> 00:11:11,160 Speaker 1: sharp whenever we talked to him. And of course he 235 00:11:11,200 --> 00:11:13,040 Speaker 1: invented the index one. He wasn't a fan of e 236 00:11:13,080 --> 00:11:14,920 Speaker 1: TF so the fact that he knows all these obscure 237 00:11:14,960 --> 00:11:18,000 Speaker 1: e t fs, including Whiskey, which ended up folding right, 238 00:11:18,000 --> 00:11:20,280 Speaker 1: I mean it shut down later on, is pretty amazing. 239 00:11:20,679 --> 00:11:22,800 Speaker 1: My only regret about that interview is that we had 240 00:11:22,800 --> 00:11:26,280 Speaker 1: all these technical difficulties and you know, Jack Bogel sitting 241 00:11:26,440 --> 00:11:29,840 Speaker 1: in some room in Vanguard in Malvern, Pennsylvania, and the 242 00:11:29,920 --> 00:11:33,880 Speaker 1: audio and kept cutting out, So we started the conversation 243 00:11:33,920 --> 00:11:35,000 Speaker 1: that we had to stop it. We had to go 244 00:11:35,080 --> 00:11:37,080 Speaker 1: to commercial break, we had to come back, and we 245 00:11:37,120 --> 00:11:39,440 Speaker 1: started the conversation again, and then he disappeared again. It 246 00:11:39,520 --> 00:11:42,480 Speaker 1: was a little bit of a technical snaffo. This was 247 00:11:42,520 --> 00:11:45,800 Speaker 1: our third show or something, and I've been done segments, 248 00:11:45,840 --> 00:11:49,160 Speaker 1: but I've never dealt with something like this live. And 249 00:11:49,200 --> 00:11:51,240 Speaker 1: I remember you we had to do something, so you 250 00:11:51,240 --> 00:11:56,840 Speaker 1: just started asking me about the Democrat Republican ETF and 251 00:11:56,880 --> 00:11:59,160 Speaker 1: we just shot the breeze on this for about three 252 00:11:59,240 --> 00:12:02,040 Speaker 1: or four minutes, just because something had to get filled 253 00:12:02,040 --> 00:12:04,439 Speaker 1: and he came back. Then we put Kathy Wood somewhere 254 00:12:04,440 --> 00:12:06,120 Speaker 1: in there. The whole show was a bit disjointed, but 255 00:12:06,760 --> 00:12:09,880 Speaker 1: Tim uh Andreacchi fixed it in post work. I think 256 00:12:09,920 --> 00:12:12,960 Speaker 1: it looked pretty natural when you saw it later. Yeah, 257 00:12:12,960 --> 00:12:14,760 Speaker 1: the whole thing with live TV is that you kind 258 00:12:14,760 --> 00:12:16,960 Speaker 1: of have to tap dance until someone tells you what 259 00:12:17,000 --> 00:12:19,240 Speaker 1: to do, and the people who tell you what to 260 00:12:19,240 --> 00:12:21,160 Speaker 1: do in the control room and they're trying to fix 261 00:12:21,200 --> 00:12:24,480 Speaker 1: everything and they're talking to the directors, and until then 262 00:12:24,720 --> 00:12:27,000 Speaker 1: you just keep talking. What's the secret to tap dance? 263 00:12:27,920 --> 00:12:30,280 Speaker 1: You have to have a good co pilot. So you know, 264 00:12:30,480 --> 00:12:32,680 Speaker 1: Eric and me up on the set, that was not 265 00:12:32,720 --> 00:12:35,480 Speaker 1: a problem. We could talk about something anything for hours, 266 00:12:35,840 --> 00:12:37,240 Speaker 1: as long as you just keep going. He used to 267 00:12:37,280 --> 00:12:42,720 Speaker 1: tell me the same thing. I sent some hostility, Okay. 268 00:12:42,760 --> 00:12:45,520 Speaker 1: Next next I picked was Kathy would Um. We had 269 00:12:45,559 --> 00:12:48,280 Speaker 1: her on the podcast recently. She is probably the guest 270 00:12:48,320 --> 00:12:50,880 Speaker 1: we've had on the most. Yeah, how many appearances Remember 271 00:12:50,920 --> 00:12:54,000 Speaker 1: on SNL when Tom Hanks was on and he he 272 00:12:54,040 --> 00:12:57,040 Speaker 1: called the five timer Club. Alex Baldwin was on more though, 273 00:12:57,080 --> 00:12:58,959 Speaker 1: I think, Yeah, this was back in the nineties, that 274 00:12:59,080 --> 00:13:01,400 Speaker 1: before Alec Baldman at all the show in our age. 275 00:13:02,559 --> 00:13:04,560 Speaker 1: So I think she might be a four timer, like 276 00:13:04,640 --> 00:13:07,120 Speaker 1: she's been on a lot. And the reason is because 277 00:13:07,160 --> 00:13:10,560 Speaker 1: she's she knows how to say things that she's just 278 00:13:10,960 --> 00:13:13,920 Speaker 1: good on TV and provocative and provocative, and her product 279 00:13:14,160 --> 00:13:16,400 Speaker 1: is is a is a hit. You know that helps, 280 00:13:16,440 --> 00:13:20,040 Speaker 1: but um, you know, to me, she's embodies what you 281 00:13:20,080 --> 00:13:22,320 Speaker 1: want out of a guest. I picked a clip of 282 00:13:22,360 --> 00:13:26,160 Speaker 1: her calling Amazon deep value. We believe if you look 283 00:13:26,240 --> 00:13:29,240 Speaker 1: at our portfolio and you do a correct analysis a 284 00:13:29,320 --> 00:13:33,160 Speaker 1: long term time horizon discounted cash flows, that we actually 285 00:13:33,160 --> 00:13:35,920 Speaker 1: are a deep value portfolio. I know that sounds crazy, 286 00:13:36,080 --> 00:13:40,240 Speaker 1: but given the opportunities and these innovation platforms and the 287 00:13:40,360 --> 00:13:42,720 Speaker 1: kind of growth they're going to generate during the next 288 00:13:42,800 --> 00:13:48,640 Speaker 1: fifteen years, we think that market does is not pricing 289 00:13:48,720 --> 00:13:51,560 Speaker 1: our stocks even now efficiently. You know, I shouldn't have 290 00:13:51,600 --> 00:13:55,240 Speaker 1: just said I shows that what that's kind of your 291 00:13:55,360 --> 00:13:57,960 Speaker 1: version of that, Like usually I subdued that. I can 292 00:13:58,000 --> 00:14:01,200 Speaker 1: do the mapping, and you definitely react did more than 293 00:14:01,240 --> 00:14:03,280 Speaker 1: you did on that. I mean, anybody would have. She 294 00:14:03,400 --> 00:14:05,520 Speaker 1: called Amazon at deep valley stock, which I don't think 295 00:14:05,520 --> 00:14:07,760 Speaker 1: I've ever heard anyone to. I mean but he speaks 296 00:14:07,800 --> 00:14:10,960 Speaker 1: to I think Kathy, who can make really bold things 297 00:14:10,960 --> 00:14:13,439 Speaker 1: and then sort of back it up with her performance. Well, 298 00:14:13,480 --> 00:14:15,920 Speaker 1: the interesting thing about Kathy is that, and Eric and 299 00:14:15,920 --> 00:14:17,920 Speaker 1: I were talking about this earlier, she's a bull. She's 300 00:14:17,960 --> 00:14:20,600 Speaker 1: an unabashed bull. But it's hard to be a bull, 301 00:14:20,640 --> 00:14:22,400 Speaker 1: and it's hard to sound smart when you're a bull. 302 00:14:22,560 --> 00:14:25,400 Speaker 1: All the bears sound really smart, right, because you're poking 303 00:14:26,320 --> 00:14:29,320 Speaker 1: in people's arguments. But if you're making the case and 304 00:14:29,400 --> 00:14:34,120 Speaker 1: you're speaking with conviction and you're enthusiastic and optimistic, you 305 00:14:34,200 --> 00:14:37,680 Speaker 1: get invited back to et f I Q that if 306 00:14:37,680 --> 00:14:41,160 Speaker 1: you're articulate. But also it's easy for people to to 307 00:14:41,240 --> 00:14:43,480 Speaker 1: say to be to say you don't know what you're 308 00:14:43,480 --> 00:14:45,720 Speaker 1: talking about, like that doesn't make sense, that doesn't make sense, 309 00:14:45,720 --> 00:14:49,080 Speaker 1: and like tear you apart. In markets, if you know 310 00:14:49,120 --> 00:14:51,920 Speaker 1: the market is going to go down eventually, and it's 311 00:14:51,960 --> 00:14:54,800 Speaker 1: a tire wind for the naysayers, and it's a weak 312 00:14:54,920 --> 00:14:56,840 Speaker 1: place to go in my opinion, and no one ever 313 00:14:56,880 --> 00:14:58,680 Speaker 1: comes back and says, hey, you said the market was 314 00:14:58,680 --> 00:15:00,600 Speaker 1: going to go down, and it's now five years later 315 00:15:00,600 --> 00:15:03,080 Speaker 1: it's up a hundred percent. My opportunity costs for listening 316 00:15:03,120 --> 00:15:05,640 Speaker 1: to you is a lot. Nobody ever rates that article 317 00:15:06,160 --> 00:15:08,240 Speaker 1: and hits the naysayers over the head with that. I 318 00:15:08,280 --> 00:15:10,720 Speaker 1: don't know why Opportunity Costs is left it, but I 319 00:15:10,800 --> 00:15:12,320 Speaker 1: agree with you it's harder to be a Kathy. What 320 00:15:12,520 --> 00:15:14,720 Speaker 1: other thing about Cathy that's interesting to me is and 321 00:15:14,720 --> 00:15:16,640 Speaker 1: we talked about this a lot. If the person is 322 00:15:16,680 --> 00:15:18,280 Speaker 1: at the top of the food chain of the company, 323 00:15:18,320 --> 00:15:21,320 Speaker 1: whether that's a one person shop or bogel at like 324 00:15:21,400 --> 00:15:24,480 Speaker 1: you know, thousands of employees, they're the best guests because 325 00:15:24,520 --> 00:15:26,800 Speaker 1: they do not have anyone to answer to. It's the 326 00:15:26,840 --> 00:15:29,120 Speaker 1: mid level they come in. You can see the lawyers 327 00:15:29,120 --> 00:15:31,320 Speaker 1: in their head as they're answering a question. Now you 328 00:15:31,320 --> 00:15:33,400 Speaker 1: can see the pr people on this side. They're literally 329 00:15:33,400 --> 00:15:37,600 Speaker 1: on the side. So that's what makes Cathy also good 330 00:15:37,720 --> 00:15:40,440 Speaker 1: is that she's running the shop there and is very 331 00:15:40,520 --> 00:15:42,560 Speaker 1: much looser with what she's saying. You can say whatever 332 00:15:42,600 --> 00:15:45,320 Speaker 1: she wants. No one's gonna stop her. Next up, we 333 00:15:45,360 --> 00:15:47,600 Speaker 1: have this is a good one. Remember x I V. 334 00:15:47,760 --> 00:15:50,440 Speaker 1: We've talked about. We had the maker of x I V, 335 00:15:50,600 --> 00:15:53,440 Speaker 1: Nick Turney, on the show two weeks before x I 336 00:15:53,520 --> 00:15:56,640 Speaker 1: V imploded, And I'm proud to say we handled it 337 00:15:56,680 --> 00:15:58,600 Speaker 1: with a lot of caution. We we use it in 338 00:15:58,600 --> 00:16:01,760 Speaker 1: the drill down, we talked, we showed the drawdowns. And 339 00:16:01,800 --> 00:16:05,600 Speaker 1: then here's Nick answering Scarlett's question about, you know, how 340 00:16:05,640 --> 00:16:09,480 Speaker 1: safe is this product so it holds up? It does? 341 00:16:09,520 --> 00:16:11,320 Speaker 1: I mean, I wouldn't have if I'll be the judge 342 00:16:11,320 --> 00:16:15,480 Speaker 1: of that, Nick, how dangerous is this et F going 343 00:16:15,520 --> 00:16:18,560 Speaker 1: to be when the VIX spikes and stays high? Yeah, 344 00:16:18,560 --> 00:16:22,720 Speaker 1: I mean obviously, selling volatility, as Eric mentioned, is designed 345 00:16:22,720 --> 00:16:25,520 Speaker 1: for trading um. It's it's certainly not a buy and 346 00:16:25,600 --> 00:16:29,120 Speaker 1: hold strategy. If you want to look back in history, 347 00:16:29,600 --> 00:16:32,160 Speaker 1: you can really the last real volatility event we had 348 00:16:32,200 --> 00:16:34,800 Speaker 1: was two thousand eleven UM, and since then it's been 349 00:16:34,920 --> 00:16:38,440 Speaker 1: pretty unexciting in the ball markets. Uh. In two thousand eleven, 350 00:16:38,480 --> 00:16:40,800 Speaker 1: shorting Vic's futures with a daily reset you would have 351 00:16:40,800 --> 00:16:44,480 Speaker 1: been down about but even if you bought at the 352 00:16:44,560 --> 00:16:48,520 Speaker 1: peak just before that, you're up about seven despite that 353 00:16:48,600 --> 00:16:52,120 Speaker 1: draw down. So UM, there's very significant drawn risks in 354 00:16:52,400 --> 00:16:55,800 Speaker 1: in shorting volatility, But as Eric mentioned, there's quite a 355 00:16:55,800 --> 00:16:58,240 Speaker 1: significant premium that comes from rolling those futures and being 356 00:16:58,240 --> 00:17:01,080 Speaker 1: willing to sell that. Two weeks later, the Eagles win 357 00:17:01,080 --> 00:17:02,920 Speaker 1: the super Bowl and x I V goes away that 358 00:17:03,920 --> 00:17:05,879 Speaker 1: you were out of work that day. I did. I 359 00:17:05,880 --> 00:17:08,240 Speaker 1: took the Monday off after the super Bowl because I 360 00:17:08,280 --> 00:17:10,280 Speaker 1: was gonna. I was up till four in the morning 361 00:17:10,680 --> 00:17:12,960 Speaker 1: and I wanted to watch all the sports shows to 362 00:17:13,080 --> 00:17:16,680 Speaker 1: just relish and wop. And something happened. Yeah. I started 363 00:17:16,680 --> 00:17:18,720 Speaker 1: to get a call from I think Luke Kawa emailed 364 00:17:18,720 --> 00:17:20,119 Speaker 1: me to see if I could come, and I was like, 365 00:17:20,160 --> 00:17:22,359 Speaker 1: what's going on? And then the whole rest of the 366 00:17:22,359 --> 00:17:24,880 Speaker 1: week was like all hands on deck. I did get 367 00:17:24,880 --> 00:17:27,080 Speaker 1: a lot of TV asks that week, because that's the 368 00:17:27,119 --> 00:17:29,480 Speaker 1: good news about some of those emplosions, you know, high 369 00:17:29,920 --> 00:17:32,280 Speaker 1: you know, I mean x I V did exactly what 370 00:17:32,320 --> 00:17:34,000 Speaker 1: it said it was gonna do. It had the termination 371 00:17:34,040 --> 00:17:37,520 Speaker 1: event written in there. You know, just because something goes 372 00:17:37,560 --> 00:17:40,880 Speaker 1: down doesn't mean it's bad. I think sometimes people associate 373 00:17:40,920 --> 00:17:44,200 Speaker 1: that. That That said, and E t F is so easy 374 00:17:44,240 --> 00:17:46,560 Speaker 1: to access. You just hit by and then now all 375 00:17:46,560 --> 00:17:49,520 Speaker 1: of a sudden you own this highly complex, complex strategy. 376 00:17:49,800 --> 00:17:51,600 Speaker 1: That is why X I V is why we came 377 00:17:51,680 --> 00:17:53,720 Speaker 1: up with the rating system. So we think X I 378 00:17:53,800 --> 00:17:55,960 Speaker 1: V s are okay, they just need to be rated R. 379 00:17:56,680 --> 00:17:58,800 Speaker 1: Then then everybody can kind of feel for what they're 380 00:17:58,800 --> 00:18:01,560 Speaker 1: getting into. But that's part of the argument. There is X, 381 00:18:01,560 --> 00:18:04,679 Speaker 1: I V the E t F that your dad bought. No, 382 00:18:06,400 --> 00:18:10,080 Speaker 1: that was t VX that that's product. Also that bets on. 383 00:18:10,359 --> 00:18:14,840 Speaker 1: Did your dad of a t VIX tattoo? Yet? No? 384 00:18:15,000 --> 00:18:20,200 Speaker 1: I mean, poor poor t VIX has the opposite problem. 385 00:18:20,240 --> 00:18:24,080 Speaker 1: On that day it did great, probably up six or something, um, 386 00:18:24,119 --> 00:18:27,160 Speaker 1: But every other day it just bleeds money quickly. And 387 00:18:27,440 --> 00:18:29,040 Speaker 1: dad had one of those. Yeah, he bought and hold 388 00:18:29,080 --> 00:18:31,480 Speaker 1: it like an idiot, and I told him not to. Yeah, 389 00:18:31,600 --> 00:18:33,480 Speaker 1: very clearly, Nick Turney said, this is not a buy 390 00:18:33,520 --> 00:18:43,080 Speaker 1: and hold investment. UM. Next up is John Davy, who 391 00:18:43,520 --> 00:18:45,760 Speaker 1: is a We've had him on a couple of times now. 392 00:18:45,800 --> 00:18:47,800 Speaker 1: He's the perfect A block guest. He's what they call 393 00:18:47,800 --> 00:18:51,520 Speaker 1: an E t F strategist advisors and EF strategist invest 394 00:18:51,600 --> 00:18:53,639 Speaker 1: in ETFs. So we have these issues on all the time, 395 00:18:53,680 --> 00:18:55,600 Speaker 1: and of course they're just pitching and pitching and pitching. 396 00:18:56,200 --> 00:18:58,720 Speaker 1: He comes in and all he does is pick ETF. 397 00:18:58,840 --> 00:19:01,440 Speaker 1: So he he goes through he's like a you know, 398 00:19:01,480 --> 00:19:05,720 Speaker 1: you ever go to the video store, editors employees picks 399 00:19:06,280 --> 00:19:08,480 Speaker 1: these strategies will come on with products that are way 400 00:19:08,520 --> 00:19:10,720 Speaker 1: beyond SPY and i WM, And that's why we like 401 00:19:10,760 --> 00:19:13,440 Speaker 1: having them. So they can talk macro about like oh 402 00:19:13,520 --> 00:19:15,479 Speaker 1: the fed and then they can work in the products 403 00:19:15,520 --> 00:19:18,720 Speaker 1: stuff at the same time. He he and other strategies 404 00:19:18,760 --> 00:19:20,960 Speaker 1: are the only ones who can like spit out names 405 00:19:20,960 --> 00:19:23,120 Speaker 1: of E t F and acronyms the way that you can. 406 00:19:23,440 --> 00:19:25,000 Speaker 1: Others may not be able to do that. They can 407 00:19:25,040 --> 00:19:27,160 Speaker 1: do it for their own E t F s, but 408 00:19:27,240 --> 00:19:29,040 Speaker 1: you know, if you bring up other ones, they might 409 00:19:29,080 --> 00:19:31,840 Speaker 1: scratch your heads a little bit. Also, John Davy, by 410 00:19:31,840 --> 00:19:34,160 Speaker 1: the way, told me his cousin is Robert Davy, who 411 00:19:34,160 --> 00:19:36,760 Speaker 1: was one of the foretelling brothers in the Goonies movie. 412 00:19:37,280 --> 00:19:46,119 Speaker 1: So yeah, which one not the other guys? Wow? Yeah, 413 00:19:46,200 --> 00:19:48,159 Speaker 1: that was See this is some of the conversation you 414 00:19:48,240 --> 00:19:50,960 Speaker 1: have before the show starts, when the guest sits down. 415 00:19:51,000 --> 00:19:52,600 Speaker 1: Can you can we figure out a way to do 416 00:19:52,640 --> 00:19:55,480 Speaker 1: a Goonies episode about et s? I mean it's got 417 00:19:55,560 --> 00:19:59,520 Speaker 1: we got data rules. Yeah, yeah, totally. There's a little 418 00:19:59,600 --> 00:20:01,520 Speaker 1: organ in filmed on the Oregan Coast. I can come 419 00:20:01,600 --> 00:20:03,480 Speaker 1: up with this. We can do this. Yeah, that's what 420 00:20:03,800 --> 00:20:08,440 Speaker 1: that movie was. There's an anniversary figured out. Oh yeah, 421 00:20:08,440 --> 00:20:10,680 Speaker 1: it's Oregan. Yeah, that's where I'm from. Oh, I love 422 00:20:10,760 --> 00:20:13,959 Speaker 1: that movie. I watched it to say, I watched it 423 00:20:14,080 --> 00:20:16,199 Speaker 1: maybe three times at the movie theater. It holds up. 424 00:20:16,240 --> 00:20:18,840 Speaker 1: All right. Let's let's hear the clip from John. So, 425 00:20:18,920 --> 00:20:21,479 Speaker 1: I think you know inflation, you know, on the margin 426 00:20:21,600 --> 00:20:23,720 Speaker 1: is rising. This is a coal that we had earlier 427 00:20:23,760 --> 00:20:25,359 Speaker 1: in the year. And if you look at the New 428 00:20:25,440 --> 00:20:28,720 Speaker 1: York Fed inflation gas, you know it's been taken up 429 00:20:29,040 --> 00:20:32,359 Speaker 1: and so so calmed by is basically a third towards energy, 430 00:20:32,760 --> 00:20:36,960 Speaker 1: a third towards precious metals, and a third towards agriculture. Um. 431 00:20:37,040 --> 00:20:40,480 Speaker 1: So right now, commodities, Um, you know there's uh, we're 432 00:20:40,480 --> 00:20:42,960 Speaker 1: in a period where there's we're in backguidation. So that's 433 00:20:43,000 --> 00:20:46,320 Speaker 1: positive roll yal, It's a couple that would historically commandis 434 00:20:46,359 --> 00:20:48,760 Speaker 1: have had positive skewness. So you know, if there's a 435 00:20:48,760 --> 00:20:51,359 Speaker 1: bad corn season, you know, corn kind of explodes to 436 00:20:51,400 --> 00:20:54,040 Speaker 1: they upside. So different from equities which have like, you know, 437 00:20:54,119 --> 00:20:56,800 Speaker 1: negative skewness. Um. So you know, we think that they're 438 00:20:56,800 --> 00:21:00,360 Speaker 1: a play on inflation. They're very uncorrelated to equities. Um. 439 00:21:00,480 --> 00:21:02,760 Speaker 1: Certainly you know against bonds. So I think you know, 440 00:21:02,760 --> 00:21:05,680 Speaker 1: they work well in a multi asset portfolio. And when 441 00:21:05,720 --> 00:21:08,639 Speaker 1: you heard him say calm B, he's not saying calm B, 442 00:21:08,800 --> 00:21:11,000 Speaker 1: He's saying c O M B as a ticker. See 443 00:21:11,040 --> 00:21:14,360 Speaker 1: that's where he nerded out. I was I was impressed there. 444 00:21:14,480 --> 00:21:17,359 Speaker 1: I was like, whoa, I actually call it comb because 445 00:21:17,359 --> 00:21:19,600 Speaker 1: it's spelled c M course you do. Yeah, See that 446 00:21:19,640 --> 00:21:24,160 Speaker 1: can be confusing that call it different things. So she's right. 447 00:21:24,200 --> 00:21:25,960 Speaker 1: I think it's a it's a lesson that you should 448 00:21:26,040 --> 00:21:28,120 Speaker 1: dwell on a little bit of like, you know, you're 449 00:21:28,160 --> 00:21:30,159 Speaker 1: you're speaking in a language that the rest of the 450 00:21:30,160 --> 00:21:32,760 Speaker 1: world doesn't always understand. This is why both of you 451 00:21:33,200 --> 00:21:37,880 Speaker 1: are good to mix it to balance it out. Absolutely. 452 00:21:37,960 --> 00:21:42,639 Speaker 1: I mean, you know, I definitely on the highway we 453 00:21:42,640 --> 00:21:44,960 Speaker 1: were talking about how ETF strategies like John are the 454 00:21:44,960 --> 00:21:46,879 Speaker 1: perfect a block GAFT because they kind of set the 455 00:21:46,880 --> 00:21:48,919 Speaker 1: scene and they can talk about what's going on and 456 00:21:48,960 --> 00:21:50,320 Speaker 1: you have to unravel it and then you have to 457 00:21:50,400 --> 00:21:53,040 Speaker 1: unravel it. But it's also a challenge to get these 458 00:21:53,040 --> 00:21:55,119 Speaker 1: guys on a lot of the times. Eric can attest 459 00:21:55,119 --> 00:21:57,760 Speaker 1: to this because the f O m C, the Federal 460 00:21:57,800 --> 00:22:01,200 Speaker 1: Reserve meets on Wednesdays every six weeks and our show 461 00:22:01,520 --> 00:22:04,160 Speaker 1: airs on Wednesdays as well. Our show is at one pm. 462 00:22:04,200 --> 00:22:06,920 Speaker 1: The f o MC announcement is at two pm. So 463 00:22:07,000 --> 00:22:09,159 Speaker 1: we have to avoid talking about the FED and what 464 00:22:09,200 --> 00:22:11,639 Speaker 1: it's going to do every six weeks on our show. 465 00:22:11,960 --> 00:22:14,040 Speaker 1: And how do you avoid talking about the FED that 466 00:22:14,119 --> 00:22:16,879 Speaker 1: the central influence on I'm not talking about God. I 467 00:22:16,920 --> 00:22:21,320 Speaker 1: ship a weekly magazine Business Week every Wednesday. After not knowing, Yeah, 468 00:22:21,080 --> 00:22:24,040 Speaker 1: I know, I know the pain that you speak of. Um. 469 00:22:24,080 --> 00:22:27,320 Speaker 1: Also this comes into play with the charting. So like 470 00:22:27,359 --> 00:22:29,800 Speaker 1: when John speaks, I get tickers he's going to cover 471 00:22:29,880 --> 00:22:32,520 Speaker 1: and I put you know, John's top five ETFs and 472 00:22:32,560 --> 00:22:35,800 Speaker 1: calm By is right up there to help people understand 473 00:22:35,880 --> 00:22:37,960 Speaker 1: and sort of map out what he's saying. That's the 474 00:22:38,040 --> 00:22:41,280 Speaker 1: elements are a crucial part, and that's some painful to make, 475 00:22:41,359 --> 00:22:43,360 Speaker 1: but it really helps. I think Eric is on top 476 00:22:43,400 --> 00:22:46,800 Speaker 1: of all of that. He's like spitting out acronyms left 477 00:22:46,800 --> 00:22:50,000 Speaker 1: and right, and Tim is trying to keep up with him. Yeah. Well, 478 00:22:50,119 --> 00:22:51,800 Speaker 1: I usually try to pick a chart or two that 479 00:22:51,920 --> 00:22:54,000 Speaker 1: is going to wow the insiders, like a Nature Racey 480 00:22:54,160 --> 00:22:56,679 Speaker 1: or a Todd Rosenbluth, something that just would be like 481 00:22:56,720 --> 00:22:58,840 Speaker 1: even amazing to an analyst. Our goal is to get 482 00:22:58,840 --> 00:23:04,399 Speaker 1: Todd to live. This is really I've I've learned to 483 00:23:04,480 --> 00:23:07,560 Speaker 1: like it. We notice when he doesn't, Yeah, it feels 484 00:23:07,560 --> 00:23:11,840 Speaker 1: a little little emptier. Where our fan Todd's been a 485 00:23:11,840 --> 00:23:15,320 Speaker 1: great guest on the untrillion. He's he is so he 486 00:23:15,400 --> 00:23:18,600 Speaker 1: makes it fun. I gotta say he's very animated and 487 00:23:18,600 --> 00:23:20,320 Speaker 1: and very good about it. But like and then some 488 00:23:20,359 --> 00:23:24,240 Speaker 1: other charts are just give me something that's simple that 489 00:23:24,400 --> 00:23:27,159 Speaker 1: somebody who's I don't know in Florida and retired can 490 00:23:27,200 --> 00:23:29,959 Speaker 1: just like not be completely lost with. Okay, Next up 491 00:23:30,040 --> 00:23:32,639 Speaker 1: is that we have the Assula's. This was really I 492 00:23:32,680 --> 00:23:35,240 Speaker 1: think sometimes all kid with Scarlett and saying you do 493 00:23:35,320 --> 00:23:37,639 Speaker 1: you went Mike Wallace on them where she goes like 494 00:23:37,680 --> 00:23:40,920 Speaker 1: sixty minutes. This was We had these people who track 495 00:23:41,000 --> 00:23:43,679 Speaker 1: four or three B plans which teachers use, and we 496 00:23:44,040 --> 00:23:46,080 Speaker 1: I think we were first nobody's had them on TV 497 00:23:46,320 --> 00:23:47,800 Speaker 1: or and then Barons were in an article a couple 498 00:23:47,840 --> 00:23:50,760 Speaker 1: of weeks later about this topic, which is blowing the 499 00:23:50,800 --> 00:23:52,960 Speaker 1: lid off of how teachers are getting screwed over by 500 00:23:52,960 --> 00:23:55,639 Speaker 1: these annuities. Why would you have a four oh one 501 00:23:55,720 --> 00:23:57,440 Speaker 1: K plan and a four oh three B plan with 502 00:23:57,520 --> 00:24:01,000 Speaker 1: completely different rules. It makes no sense. The principle is 503 00:24:01,040 --> 00:24:05,120 Speaker 1: to accumulate wealth for your retirement, correct, So how can 504 00:24:05,160 --> 00:24:08,120 Speaker 1: you how how could you accumulate wealth if you're paying 505 00:24:08,280 --> 00:24:12,680 Speaker 1: three or four percent in fees? It's virtually impossible after inflation. 506 00:24:13,000 --> 00:24:14,560 Speaker 1: This is a common theme on the show, but this 507 00:24:14,600 --> 00:24:17,560 Speaker 1: was an extreme case. I mean, it's funny sometimes we'll 508 00:24:17,560 --> 00:24:20,200 Speaker 1: talk about flows going to a fund because it's two 509 00:24:20,240 --> 00:24:23,760 Speaker 1: basis points cheaper. Now he's he's talking about three hundred 510 00:24:23,760 --> 00:24:27,520 Speaker 1: basis points and you forget that. The advisor world is 511 00:24:27,560 --> 00:24:30,280 Speaker 1: definitely tuned into those bibs, but most regular people, a 512 00:24:30,280 --> 00:24:33,399 Speaker 1: lot of them are definitely forget it, and they and 513 00:24:33,400 --> 00:24:36,280 Speaker 1: they don't realize it absolutely, And that's why this thing 514 00:24:36,600 --> 00:24:38,359 Speaker 1: is probably in the second or third inning only in 515 00:24:38,400 --> 00:24:41,240 Speaker 1: my opinion. And he was in a unique situation because 516 00:24:41,280 --> 00:24:43,959 Speaker 1: he was a former teacher. Before he was a teacher, 517 00:24:44,320 --> 00:24:47,680 Speaker 1: he traded FX, so he clearly understood how markets worked, 518 00:24:47,680 --> 00:24:50,480 Speaker 1: he understood how fees worked. Then he went to become 519 00:24:50,480 --> 00:24:53,000 Speaker 1: a teacher and he was looking at all these four 520 00:24:53,080 --> 00:24:55,720 Speaker 1: or three B plans and thinking this is insane. I 521 00:24:55,760 --> 00:24:57,520 Speaker 1: can't believe that they're trying to sell this to us, 522 00:24:57,720 --> 00:25:00,159 Speaker 1: and there's what six two seventy vendors come ing to 523 00:25:00,280 --> 00:25:02,840 Speaker 1: teachers and saying, my mind, my mind, my mind, and 524 00:25:02,880 --> 00:25:04,640 Speaker 1: no one knows how to do it. So teachers would 525 00:25:04,640 --> 00:25:06,359 Speaker 1: ask him and he took a closer look at it, 526 00:25:06,400 --> 00:25:08,280 Speaker 1: and he was saying, this is this is crazy, this 527 00:25:08,320 --> 00:25:10,520 Speaker 1: is highway robbery. Were the perfect victim, and it was 528 00:25:10,560 --> 00:25:12,280 Speaker 1: finds me those commercials you see, how would you like 529 00:25:12,320 --> 00:25:14,160 Speaker 1: to make ten percent a year with no downside risk? 530 00:25:14,200 --> 00:25:16,120 Speaker 1: And that those those are how those are pitched? This 531 00:25:16,200 --> 00:25:18,680 Speaker 1: was this one was just interesting and to so many people, 532 00:25:18,800 --> 00:25:21,800 Speaker 1: because a lot of a lot of my colleagues came 533 00:25:21,880 --> 00:25:24,280 Speaker 1: up to me afterwards and said their spouses a teacher, 534 00:25:24,359 --> 00:25:26,399 Speaker 1: and you know they would they would come home with 535 00:25:26,440 --> 00:25:28,120 Speaker 1: these four or three B plans and not be able 536 00:25:28,119 --> 00:25:30,080 Speaker 1: to make sense of it. And you know, we finally 537 00:25:31,040 --> 00:25:33,520 Speaker 1: laid it all out there. Why it's wrong, Why everything 538 00:25:33,560 --> 00:25:38,440 Speaker 1: that goes into it is is flawed. Okay, next up, Scarlet, 539 00:25:38,440 --> 00:25:40,760 Speaker 1: you picked this one. This is Jamie Catherwood. He is 540 00:25:41,000 --> 00:25:44,240 Speaker 1: a millennial. He's very active on Finn twit Um. He's 541 00:25:44,240 --> 00:25:48,879 Speaker 1: a financial historian by passion. He worked i think at 542 00:25:48,880 --> 00:25:51,520 Speaker 1: Gallagher at the time. He's now at O'Shaughnessy Asset Management. 543 00:25:51,520 --> 00:25:54,240 Speaker 1: He actually got his job at O'Shaughnessy because he was 544 00:25:54,280 --> 00:25:57,920 Speaker 1: active on Twitter and hooked up with Jim O'Shaughnessy. I 545 00:25:57,960 --> 00:26:00,520 Speaker 1: think he found an opening. People are so caught up 546 00:26:00,560 --> 00:26:03,359 Speaker 1: between eighty seven and today. Yeah, he tracked stuff that 547 00:26:03,400 --> 00:26:06,719 Speaker 1: happened in like seven and figures out ways they are 548 00:26:06,760 --> 00:26:09,440 Speaker 1: relevant today and no one was doing that, and it 549 00:26:09,440 --> 00:26:11,320 Speaker 1: seems fresh and original, And he's kind of carved a 550 00:26:11,400 --> 00:26:14,399 Speaker 1: Niche shot as the historian guy. What do you have 551 00:26:14,440 --> 00:26:16,639 Speaker 1: to say. He's talking about passive investing in how it 552 00:26:16,680 --> 00:26:18,439 Speaker 1: goes all the way back, the roots of it go 553 00:26:18,480 --> 00:26:21,000 Speaker 1: all the way back to medieval Italy. And Jamie, what 554 00:26:21,040 --> 00:26:23,240 Speaker 1: about liquidity? In your essay you mentioned there was an 555 00:26:23,280 --> 00:26:26,439 Speaker 1: iron chest with three different locks, so liquidity was an 556 00:26:26,520 --> 00:26:30,520 Speaker 1: issue back then. Yeah. So for this unity to create 557 00:26:30,560 --> 00:26:33,680 Speaker 1: Strength fund, once you bought shares of the mutual fund, 558 00:26:33,800 --> 00:26:36,560 Speaker 1: those could be freely traded on a secondary market to 559 00:26:36,640 --> 00:26:40,840 Speaker 1: other investors, So that was liquid. But the underlying securities, 560 00:26:40,880 --> 00:26:44,159 Speaker 1: the actual bonds that the fund was invested in, those 561 00:26:44,240 --> 00:26:48,359 Speaker 1: were held safe in an iron chest with three separate locks. 562 00:26:48,720 --> 00:26:51,919 Speaker 1: So if ever an active decision was to be taken 563 00:26:52,480 --> 00:26:55,960 Speaker 1: three separate commissioners would have to come together agree on 564 00:26:56,080 --> 00:26:59,040 Speaker 1: the you know, cell decision and unlock at the same time. 565 00:26:59,280 --> 00:27:01,960 Speaker 1: So to me, rather than a quant fund, the fun 566 00:27:02,560 --> 00:27:06,000 Speaker 1: represents an early kind of bond index fund because they're 567 00:27:06,040 --> 00:27:09,840 Speaker 1: so little room to maneuver and make active decisions. Wow, 568 00:27:09,880 --> 00:27:12,399 Speaker 1: that's awesome. It is you know, indexes every now and 569 00:27:12,400 --> 00:27:15,280 Speaker 1: then change, but they do take that level of So 570 00:27:15,960 --> 00:27:18,399 Speaker 1: that is just such a visual thing to think of 571 00:27:18,480 --> 00:27:20,639 Speaker 1: this three lock box. We're only going to get it 572 00:27:20,680 --> 00:27:23,920 Speaker 1: out if we all three show up with our special gy. 573 00:27:24,000 --> 00:27:26,560 Speaker 1: The amazing thing about all of that was no one 574 00:27:26,640 --> 00:27:29,480 Speaker 1: called it a mutual fund. I mean, he referred to 575 00:27:29,520 --> 00:27:31,480 Speaker 1: as mutual hunt because he said it's like a modern 576 00:27:31,520 --> 00:27:34,080 Speaker 1: day mutual fund. But he went back in time and 577 00:27:34,119 --> 00:27:36,280 Speaker 1: like went to some database and figured this all out 578 00:27:36,320 --> 00:27:38,640 Speaker 1: and writes these long essays about it. And he also 579 00:27:38,680 --> 00:27:41,359 Speaker 1: had the ancient roots of active investing as well, so 580 00:27:41,560 --> 00:27:43,240 Speaker 1: he's got a whole series of this. I love the 581 00:27:43,280 --> 00:27:46,199 Speaker 1: tech involved to like going to the locksmith. So you're 582 00:27:46,240 --> 00:27:48,080 Speaker 1: gonna make this thing, and you're gonna do it one 583 00:27:48,119 --> 00:27:49,719 Speaker 1: way and then a different way in a different way, 584 00:27:49,720 --> 00:27:53,080 Speaker 1: and the laxmith is like WHOA. I'm not gonna ask 585 00:27:53,080 --> 00:27:56,720 Speaker 1: any questions. I'm just gonna do it. Also with Jamie Um, 586 00:27:56,760 --> 00:28:00,639 Speaker 1: he what is I don't want to graduate from college? 587 00:28:00,640 --> 00:28:03,240 Speaker 1: Maybe less than five years ago. He is easily the 588 00:28:03,280 --> 00:28:05,960 Speaker 1: youngest guest that the show has ever had. And I 589 00:28:06,000 --> 00:28:09,000 Speaker 1: mean just trying to have tomorrow stars on today. You know. 590 00:28:09,240 --> 00:28:11,120 Speaker 1: Um there's a show on MTV back in the day 591 00:28:11,160 --> 00:28:14,480 Speaker 1: called dred and twenty Minutes and it was on that 592 00:28:14,520 --> 00:28:16,840 Speaker 1: with Dave Kendall. It was on Sunday nights from like 593 00:28:16,880 --> 00:28:20,600 Speaker 1: ten to twelve, and it's like maybe the late they 594 00:28:20,600 --> 00:28:24,159 Speaker 1: play new wave music. They played um early alternative like 595 00:28:24,200 --> 00:28:27,679 Speaker 1: the Cure Order all that kind of stuff, and then 596 00:28:27,680 --> 00:28:30,480 Speaker 1: when grunge broke that became mainstream. So I kind of 597 00:28:30,520 --> 00:28:34,480 Speaker 1: feel like the ETF industry definitely attracts younger people. A 598 00:28:34,480 --> 00:28:37,400 Speaker 1: lot of new hires go there. And I also think that, 599 00:28:37,480 --> 00:28:40,120 Speaker 1: you know, the a lot of the people who are 600 00:28:40,200 --> 00:28:42,600 Speaker 1: making these products is more assets come in, they'll they'll 601 00:28:42,600 --> 00:28:45,040 Speaker 1: probably get more stature. So I feel like we are 602 00:28:45,080 --> 00:28:47,760 Speaker 1: trying to catch them earlier. So we're gonna be a 603 00:28:47,840 --> 00:28:51,160 Speaker 1: hundred twenty minutes. We're only thirty minutes. I know, we 604 00:28:51,200 --> 00:28:52,880 Speaker 1: didn't we did another nine. Yeah, Tim is going to 605 00:28:53,080 --> 00:28:57,080 Speaker 1: rip out his hair. He cares about this. Okay, Who's next? 606 00:28:57,520 --> 00:28:59,520 Speaker 1: Next is what we try to do once every six months, 607 00:28:59,560 --> 00:29:02,760 Speaker 1: which is get big like a list guest, and um, 608 00:29:02,840 --> 00:29:06,600 Speaker 1: Scarlett deserves all the credit here. Howard Marks. We got 609 00:29:06,640 --> 00:29:09,000 Speaker 1: Howard Marks double two blocks, so he was like A 610 00:29:09,080 --> 00:29:11,280 Speaker 1: and B and who's Howard? Just for people who don't know, 611 00:29:11,360 --> 00:29:14,440 Speaker 1: he's a very well known investor, very well respected, very 612 00:29:14,440 --> 00:29:18,040 Speaker 1: good track record, very very smart. Writes these really easy 613 00:29:18,080 --> 00:29:21,720 Speaker 1: to understand investor newsletters that lays out what he's doing, 614 00:29:21,840 --> 00:29:24,520 Speaker 1: why he's doing it, and he's a hedge fund manager 615 00:29:24,640 --> 00:29:27,440 Speaker 1: predominantly right. So and he's a billionaire I believe. Yeah, Well, 616 00:29:27,520 --> 00:29:30,479 Speaker 1: I mean they all are, right, So we're talking about 617 00:29:30,520 --> 00:29:33,400 Speaker 1: somebody who doesn't really need ETFs, but he wrote about 618 00:29:33,440 --> 00:29:35,920 Speaker 1: them a couple of times, and he you know, had 619 00:29:36,000 --> 00:29:38,840 Speaker 1: some issues with passive in general, called it called an autopilot. 620 00:29:38,880 --> 00:29:41,160 Speaker 1: And then he's also talked about h y G liquidity, 621 00:29:41,160 --> 00:29:43,880 Speaker 1: which has come up over and over um. But now 622 00:29:43,880 --> 00:29:46,080 Speaker 1: Howard Mark says that it makes you know, the Financial 623 00:29:46,080 --> 00:29:48,360 Speaker 1: Times Bloomberg people write about it attention. So we had 624 00:29:48,440 --> 00:29:51,840 Speaker 1: him on and we asked him about passive investing. Let's 625 00:29:51,840 --> 00:29:54,800 Speaker 1: see what you have to say. They're good for investing. 626 00:29:55,520 --> 00:29:57,840 Speaker 1: And I think that if if you and and they 627 00:29:58,040 --> 00:29:59,720 Speaker 1: and most of them have low fees, which is a 628 00:29:59,760 --> 00:30:02,600 Speaker 1: good thing, and if you want to invest in the 629 00:30:02,680 --> 00:30:07,440 Speaker 1: kinds of things that the E t F UH invests in, 630 00:30:07,800 --> 00:30:10,840 Speaker 1: then I think it's a good vehicle for you. Uh. 631 00:30:11,080 --> 00:30:17,280 Speaker 1: The issue, Scarlett, in my opinion, the main issue is liquidity. 632 00:30:17,840 --> 00:30:20,960 Speaker 1: I think the people turned to e t f s 633 00:30:21,080 --> 00:30:23,440 Speaker 1: and away from mutual funds because with a mutual fund 634 00:30:23,440 --> 00:30:25,560 Speaker 1: you can only trade at the end of the day, 635 00:30:25,680 --> 00:30:29,440 Speaker 1: uh and uh at the prices set at the end 636 00:30:29,480 --> 00:30:30,760 Speaker 1: of the day. With an e t F you can 637 00:30:30,800 --> 00:30:33,920 Speaker 1: trade any time. So it's easy to say, oh, it's 638 00:30:33,920 --> 00:30:37,600 Speaker 1: more liquid, it's more flexible, I can do more things. Um. 639 00:30:37,680 --> 00:30:40,640 Speaker 1: And that should be true. But on the other hand, 640 00:30:40,680 --> 00:30:44,960 Speaker 1: as it should, so he brings up the the this 641 00:30:44,960 --> 00:30:46,880 Speaker 1: this thing about e t f s being very liquid, 642 00:30:46,920 --> 00:30:50,000 Speaker 1: and some of them track holdings that are don't trade 643 00:30:50,040 --> 00:30:52,920 Speaker 1: every day or less liquid. In this liquidity mismatch is 644 00:30:52,920 --> 00:30:55,280 Speaker 1: a constant, recurring theme, and we've addressed it head on, 645 00:30:55,600 --> 00:30:57,200 Speaker 1: and then we do this thing now because we can't 646 00:30:57,240 --> 00:30:59,600 Speaker 1: get two people like on Fox news to just like argue. 647 00:31:00,120 --> 00:31:01,800 Speaker 1: I'd love to do that. By the way, I don't 648 00:31:01,800 --> 00:31:05,720 Speaker 1: think that that adds any value. I'm sorry you would anyway. 649 00:31:05,800 --> 00:31:08,400 Speaker 1: So because we can't get people on like together arguing, 650 00:31:08,520 --> 00:31:10,520 Speaker 1: we'll take the clip of like Matt Tucker from Black 651 00:31:10,600 --> 00:31:13,040 Speaker 1: Rock and play him talking about why you have nothing 652 00:31:13,080 --> 00:31:16,520 Speaker 1: to worry about with HyG and get hit marks to react. 653 00:31:17,200 --> 00:31:19,160 Speaker 1: Then when the next Black Rock persons on will play 654 00:31:19,200 --> 00:31:21,800 Speaker 1: marksist clip. That's the best closest we can come to 655 00:31:21,840 --> 00:31:23,960 Speaker 1: try to getting the debate in real time. Yeah, no, 656 00:31:23,960 --> 00:31:25,760 Speaker 1: no, no no, I mean this is one of the limitations 657 00:31:25,760 --> 00:31:27,360 Speaker 1: of a thirty minute show. I mean, if you're going 658 00:31:27,400 --> 00:31:29,760 Speaker 1: to have an argument or debate, that's going to take 659 00:31:29,880 --> 00:31:32,920 Speaker 1: a good fifteen minutes, and there's half your show right there. 660 00:31:32,920 --> 00:31:34,920 Speaker 1: Actually more than half because we have commercials as well. 661 00:31:35,080 --> 00:31:39,440 Speaker 1: But yeah, this whole idea of liquidity everybody's favorite knock 662 00:31:40,160 --> 00:31:42,280 Speaker 1: it is like, how many times have you talked? I 663 00:31:42,360 --> 00:31:44,480 Speaker 1: think I figured that out like within the first sort 664 00:31:44,520 --> 00:31:46,800 Speaker 1: of month of putting my head in the et F space. 665 00:31:46,880 --> 00:31:50,520 Speaker 1: It's like with the knock oh liquidity and oh h 666 00:31:50,640 --> 00:31:52,920 Speaker 1: y G. I've heard this argument before. If you want 667 00:31:52,920 --> 00:31:55,360 Speaker 1: to sound smart, just bring up liquidity and it's like 668 00:31:55,400 --> 00:31:57,440 Speaker 1: literally like you can find yourself in a room full 669 00:31:57,440 --> 00:31:59,480 Speaker 1: of et F nerds just be like you guys worried 670 00:31:59,480 --> 00:32:02,840 Speaker 1: about liquidity? You right now And it's logical. It's like 671 00:32:02,880 --> 00:32:04,719 Speaker 1: you know, Wall Street evinced things that blow up all 672 00:32:04,760 --> 00:32:07,240 Speaker 1: the time and I but time and time again, we've 673 00:32:07,280 --> 00:32:10,320 Speaker 1: had these crazy, awful sell offs and the ETF does 674 00:32:10,360 --> 00:32:13,200 Speaker 1: fine and starting to turn a little people, so say, actually, 675 00:32:13,240 --> 00:32:16,040 Speaker 1: maybe the ad liquid We had Chrystom Money and Aaron 676 00:32:16,080 --> 00:32:19,800 Speaker 1: Brown from a q R both came on and said, actually, 677 00:32:19,880 --> 00:32:22,160 Speaker 1: at least you'll get a price in an ETF. You 678 00:32:22,160 --> 00:32:24,360 Speaker 1: may not like it, but it's going to trade. And 679 00:32:24,400 --> 00:32:26,240 Speaker 1: so I think it's turning a little bit. I don't know. 680 00:32:26,280 --> 00:32:28,000 Speaker 1: I don't I don't see it going away anytime suit either. 681 00:32:28,040 --> 00:32:29,440 Speaker 1: I want to go back to what you're saying, which 682 00:32:29,480 --> 00:32:32,880 Speaker 1: is how to sound smart in a group of nerds. Presidian, 683 00:32:33,000 --> 00:32:38,360 Speaker 1: this is real. What's that non transparent active wrappers? Oh wow, 684 00:32:38,480 --> 00:32:40,320 Speaker 1: what do you think of that? That is the biggest 685 00:32:40,320 --> 00:32:43,040 Speaker 1: one up drop that in the room. And like Chrisidian, 686 00:32:43,200 --> 00:32:45,920 Speaker 1: discuss what happened when you've done that? That will make 687 00:32:45,960 --> 00:32:47,640 Speaker 1: you the hit of the cocktail party. I don't well, 688 00:32:47,680 --> 00:32:50,000 Speaker 1: I mean it's a little too nerdy. But because you 689 00:32:50,000 --> 00:32:52,280 Speaker 1: want to warm up to that point, you gotta be 690 00:32:52,320 --> 00:32:54,560 Speaker 1: careful with that because then the people flee from you. Yeah, 691 00:32:54,600 --> 00:32:56,200 Speaker 1: they're a little bit like, wait, wait, why why are 692 00:32:56,240 --> 00:32:58,240 Speaker 1: you saying this? Yeah, that's like like you can you 693 00:32:58,240 --> 00:33:00,400 Speaker 1: can be like you know, fifteen minut it's into a 694 00:33:00,400 --> 00:33:02,360 Speaker 1: conversation and then it's like, oh, well, I just did 695 00:33:02,400 --> 00:33:05,000 Speaker 1: myself a favorite into this conversation. Yeah, but I mean 696 00:33:05,320 --> 00:33:07,320 Speaker 1: that one's another one that we we talked about quite 697 00:33:07,320 --> 00:33:10,120 Speaker 1: a bit because Presidian is how Active is hoping to 698 00:33:10,160 --> 00:33:13,400 Speaker 1: turn the tide, and um, that's obviously a huge debate point. 699 00:33:13,480 --> 00:33:16,040 Speaker 1: So this stuff doesn't come up a lot on the 700 00:33:16,040 --> 00:33:18,680 Speaker 1: rest of the network here and there. So Minus will 701 00:33:18,680 --> 00:33:20,920 Speaker 1: dive into it. Get thirty minutes, so we'll go into 702 00:33:21,000 --> 00:33:22,760 Speaker 1: you know, how can Active make it? Because normally we 703 00:33:22,880 --> 00:33:25,560 Speaker 1: have Active manager on Bloomberg Television, they're picking stocks, they're 704 00:33:25,600 --> 00:33:26,840 Speaker 1: just talking about what they think of the fed in 705 00:33:26,840 --> 00:33:29,400 Speaker 1: the market, and here we're gonna ask them like, what 706 00:33:29,440 --> 00:33:30,760 Speaker 1: do you think of the prosidium? Are you going to 707 00:33:30,880 --> 00:33:32,960 Speaker 1: use it? What do you think of ETF? You just 708 00:33:33,000 --> 00:33:35,480 Speaker 1: added value to this this episode of True thank you, 709 00:33:35,640 --> 00:33:39,440 Speaker 1: thank you. All right. Next up we have West Gray, 710 00:33:39,520 --> 00:33:43,200 Speaker 1: who is um a PhD out of Chicago, smart guy, 711 00:33:43,320 --> 00:33:47,240 Speaker 1: ex military guy, but plane spoken, and his e t 712 00:33:47,440 --> 00:33:50,200 Speaker 1: F q VAL is deep value. I mean he holds 713 00:33:50,240 --> 00:33:52,920 Speaker 1: like like mall stocks. Right, we're talking p of like 714 00:33:52,960 --> 00:33:55,080 Speaker 1: half the S and P and so we asked them 715 00:33:55,160 --> 00:33:58,200 Speaker 1: how it's like to try to sell this to advisors. Well, 716 00:33:58,240 --> 00:34:00,480 Speaker 1: it's scarce advisors because if if you look at the 717 00:34:00,480 --> 00:34:04,040 Speaker 1: performance of say QVL last year, it got absolutely destroyed 718 00:34:04,080 --> 00:34:07,000 Speaker 1: by the SMP. So if I'm sitting here as advisor 719 00:34:07,480 --> 00:34:10,319 Speaker 1: and I'm showing them this weird ticker called c VAL 720 00:34:10,640 --> 00:34:13,120 Speaker 1: and how it owner performed index by whatever, I don't 721 00:34:13,120 --> 00:34:15,600 Speaker 1: even know, ten twenty points, They're gonna be like, you're 722 00:34:15,600 --> 00:34:18,800 Speaker 1: an idiot, You're fired. Right Where, it's much safer telling 723 00:34:18,880 --> 00:34:22,520 Speaker 1: something that essentially closet index and has very low tracking 724 00:34:22,600 --> 00:34:24,719 Speaker 1: er and it doesn't really ever deviate too much from 725 00:34:24,719 --> 00:34:27,200 Speaker 1: the SMP. But I can still tell the story to 726 00:34:27,280 --> 00:34:30,239 Speaker 1: my client, Oh, we own value. We're we're we're cool 727 00:34:30,280 --> 00:34:33,360 Speaker 1: like the other guys. But most people just realistically can't 728 00:34:33,440 --> 00:34:37,160 Speaker 1: do or really I can't own c vouts. It's insane 729 00:34:37,239 --> 00:34:41,879 Speaker 1: career suicide. Almost what he just said explains so much 730 00:34:41,960 --> 00:34:43,920 Speaker 1: of the questions you have in flows and assets, like 731 00:34:43,920 --> 00:34:47,000 Speaker 1: why would people buy a mutual fund that that basically 732 00:34:47,040 --> 00:34:48,839 Speaker 1: gives it the SMP and it's very close to it's 733 00:34:48,840 --> 00:34:52,960 Speaker 1: called closet indexing. That's why career risk of advisors is 734 00:34:53,000 --> 00:34:55,040 Speaker 1: the answer to a lot of the questions where the 735 00:34:55,040 --> 00:34:58,920 Speaker 1: flows don't really seem natural. And not only was that 736 00:34:58,960 --> 00:35:02,160 Speaker 1: a honest answer, most people would come and say, yeah, 737 00:35:02,200 --> 00:35:05,480 Speaker 1: advisor should use Cuba. He's like, it's career suicide. Actually, 738 00:35:05,520 --> 00:35:07,640 Speaker 1: I heard some people later go actually like that. I 739 00:35:07,680 --> 00:35:09,520 Speaker 1: got interested in the product because he was so honest 740 00:35:09,520 --> 00:35:12,360 Speaker 1: from Georgian opposite day, like just saying the opposite of 741 00:35:12,360 --> 00:35:14,960 Speaker 1: what you should say. Um, so I actually think that 742 00:35:15,200 --> 00:35:17,960 Speaker 1: might work for him. I liked it because his backstory 743 00:35:18,200 --> 00:35:20,719 Speaker 1: is fantastic. You said he was a former military guy 744 00:35:20,719 --> 00:35:23,400 Speaker 1: who's in the Marine Corps, and we asked him about 745 00:35:23,440 --> 00:35:25,799 Speaker 1: how he went from being in the military, or how 746 00:35:25,840 --> 00:35:28,520 Speaker 1: does he have the intestinal fortitude to ride out the 747 00:35:28,560 --> 00:35:31,839 Speaker 1: pain in years where c VOT does really badly and 748 00:35:32,040 --> 00:35:34,400 Speaker 1: he keeps such a great answer. Being a marine is 749 00:35:34,440 --> 00:35:37,680 Speaker 1: about being different and engaging in things that suck. If 750 00:35:37,719 --> 00:35:39,440 Speaker 1: you can do that with a lot of discipline and 751 00:35:39,480 --> 00:35:42,080 Speaker 1: outfight the enemy, you can win over the long term. Okay, 752 00:35:42,200 --> 00:35:45,240 Speaker 1: we got a kick, who's the last one? It's what? 753 00:35:45,520 --> 00:35:48,080 Speaker 1: So at the end of every episode, we make these 754 00:35:48,080 --> 00:35:50,400 Speaker 1: little videos that almost seemed like commercials, but we just 755 00:35:50,840 --> 00:35:53,120 Speaker 1: make a one minute video called and this is your 756 00:35:53,160 --> 00:35:55,000 Speaker 1: idea too, there's an e t F for that? Because 757 00:35:55,000 --> 00:35:57,040 Speaker 1: I think a non e t F person is probably 758 00:35:57,080 --> 00:35:59,080 Speaker 1: blown away time and time again, we're like, there's an 759 00:35:59,080 --> 00:36:01,200 Speaker 1: e t F for that. This was and this was 760 00:36:01,239 --> 00:36:03,960 Speaker 1: from when Eric used to come on Alex Steele and 761 00:36:04,040 --> 00:36:07,040 Speaker 1: My show and he would preface things by saying, and 762 00:36:07,080 --> 00:36:08,640 Speaker 1: by the way, there's an e t F for blank 763 00:36:08,640 --> 00:36:11,040 Speaker 1: blank blank. And it always kind of stuck in my 764 00:36:11,040 --> 00:36:13,480 Speaker 1: head that they were always coming up with these ridiculous ETFs. 765 00:36:13,920 --> 00:36:16,160 Speaker 1: You know, video games, which we've discussed is not crazy 766 00:36:16,160 --> 00:36:18,719 Speaker 1: at all and makes total sense. But you know, why 767 00:36:18,760 --> 00:36:21,319 Speaker 1: not make this into an actual segment where you can say, wait, 768 00:36:21,360 --> 00:36:23,080 Speaker 1: did you know there's an et F that tracks space 769 00:36:23,120 --> 00:36:25,840 Speaker 1: companies even though there aren't any publicly traded companies that 770 00:36:25,920 --> 00:36:28,799 Speaker 1: dabble in space. Of all those videos, um, I have 771 00:36:28,880 --> 00:36:30,759 Speaker 1: my favorites, but the one I picked was for the 772 00:36:30,760 --> 00:36:33,000 Speaker 1: Global X Millennials e t F m I l N. 773 00:36:33,320 --> 00:36:35,520 Speaker 1: And the reason I picked this one UM isn't because 774 00:36:35,520 --> 00:36:38,160 Speaker 1: it's my favorite or anything, but because I asked UM 775 00:36:38,600 --> 00:36:42,040 Speaker 1: someone in production to pull the download hits on all 776 00:36:42,080 --> 00:36:43,719 Speaker 1: the videos, because every time we do a clipp it 777 00:36:43,719 --> 00:36:45,840 Speaker 1: gets put on the Internet. Which ones have people like 778 00:36:45,880 --> 00:36:48,160 Speaker 1: clicked on the most? And after all we just went 779 00:36:48,200 --> 00:36:51,680 Speaker 1: over all this hard hitting journalism. The Mike Wallace Moments 780 00:36:51,920 --> 00:36:59,319 Speaker 1: the Millennial video is the most clicked on video the 781 00:36:59,360 --> 00:37:02,480 Speaker 1: Global X Millennials. Thematic et F trades under the fitting 782 00:37:02,520 --> 00:37:05,600 Speaker 1: ticker m i l N. The fund tracks US listed 783 00:37:05,600 --> 00:37:09,400 Speaker 1: companies exposed to spending categories relevant to the millennial generation, 784 00:37:09,840 --> 00:37:13,440 Speaker 1: those born between ninety and two thousand. The index is 785 00:37:13,440 --> 00:37:18,000 Speaker 1: based on consumer spending data, consumer behavior, technology, and demographics. 786 00:37:18,800 --> 00:37:21,000 Speaker 1: M i l N is weighted heavily in the Internet 787 00:37:21,000 --> 00:37:24,640 Speaker 1: and retail sectors. It includes names from Amazon, Into It, 788 00:37:24,880 --> 00:37:29,560 Speaker 1: Facebook and Netflix, to Nike, Starbucks, and Home Depot. The 789 00:37:29,600 --> 00:37:32,560 Speaker 1: fund has some eighteen million dollars in assets, cost fifty 790 00:37:32,560 --> 00:37:36,839 Speaker 1: basis points and has returned almost since launching two years ago. 791 00:37:37,400 --> 00:37:40,520 Speaker 1: It's outperformed the broader market by about five percentage points 792 00:37:40,520 --> 00:37:43,640 Speaker 1: thanks to a big overweight in Netflix. M I l 793 00:37:43,760 --> 00:37:46,160 Speaker 1: N gets a green light in the Bloomberg Intelligence traffic 794 00:37:46,239 --> 00:37:48,920 Speaker 1: light system because what you see is what you get. 795 00:37:48,920 --> 00:37:55,200 Speaker 1: A long only basket weighted by market cap. I love 796 00:37:55,239 --> 00:38:01,400 Speaker 1: the music and has three thousand clicks. Think, yeah, Scarlett 797 00:38:01,480 --> 00:38:07,440 Speaker 1: has great voiceover abilities. Have you been approached for voiceovers? No? 798 00:38:07,600 --> 00:38:08,880 Speaker 1: But I want that to be the thing I do 799 00:38:08,960 --> 00:38:10,960 Speaker 1: after I retire. Yeah, I mean, like just sit back 800 00:38:11,000 --> 00:38:13,479 Speaker 1: and like do voiceovers all day. I didn't Pixar movies 801 00:38:13,600 --> 00:38:17,120 Speaker 1: or like anything. Yeah, call me. How about how about 802 00:38:17,280 --> 00:38:19,880 Speaker 1: Eric just moves his mouth and then you can do 803 00:38:20,040 --> 00:38:21,920 Speaker 1: voice over for that. By the way, did you like 804 00:38:21,960 --> 00:38:24,319 Speaker 1: the shout out to the Bloomberg Intelligence traffic lights? Did? 805 00:38:24,480 --> 00:38:27,000 Speaker 1: I did? Eric, You've hit the big time. Scarlett's talking 806 00:38:27,000 --> 00:38:30,640 Speaker 1: about your traffic light system on your own show. It's 807 00:38:31,840 --> 00:38:34,880 Speaker 1: this is a good place for it. Though it's not crowbarted. 808 00:38:35,040 --> 00:38:37,080 Speaker 1: I think it fits nicely there because usually we're covering 809 00:38:37,120 --> 00:38:39,279 Speaker 1: some far outs. That's it's called product placement. You know. 810 00:38:39,320 --> 00:38:41,560 Speaker 1: Both of our kids come up with this one because 811 00:38:41,680 --> 00:38:44,520 Speaker 1: the video because when this comes on the weekend occasionally 812 00:38:44,520 --> 00:38:47,719 Speaker 1: will uh, my wife will watch it, and if my 813 00:38:47,800 --> 00:38:50,279 Speaker 1: kids are around, they just they're bored, but sometimes the 814 00:38:50,360 --> 00:38:53,520 Speaker 1: cartoon eight year old can can handle. He can actually, 815 00:38:53,719 --> 00:38:56,239 Speaker 1: that was of Scarlett's voice. Yeah, well that's probably what 816 00:38:56,280 --> 00:38:58,000 Speaker 1: it is. No, you know what it is. It's so funny. 817 00:38:58,200 --> 00:39:01,120 Speaker 1: Speaking of the Bloomberg Intelligence Traffic Lights System, My kids 818 00:39:01,160 --> 00:39:02,799 Speaker 1: watch all the videos because I show it to them 819 00:39:02,840 --> 00:39:05,840 Speaker 1: because you know, we're we're looking at them every Monday 820 00:39:05,840 --> 00:39:07,839 Speaker 1: and Tuesday before the show airs on Wednesday, to make 821 00:39:07,840 --> 00:39:10,880 Speaker 1: sure that the graphics are correct and everything. And they 822 00:39:10,920 --> 00:39:13,080 Speaker 1: actually turned to me and they said, is there ever 823 00:39:13,239 --> 00:39:15,120 Speaker 1: an et F that scores a red light in the 824 00:39:15,160 --> 00:39:17,680 Speaker 1: Bloomerk Intelligence Traffic Light system because we only get the 825 00:39:17,680 --> 00:39:19,680 Speaker 1: ones that are green lights? And this is true. And 826 00:39:19,680 --> 00:39:21,319 Speaker 1: I came back and we discussed how we can get 827 00:39:21,360 --> 00:39:23,439 Speaker 1: some red light ones in. Yes, So the next week 828 00:39:23,520 --> 00:39:25,920 Speaker 1: or the week after, we did fang D, which is 829 00:39:26,360 --> 00:39:30,480 Speaker 1: triple leveraged. Uh, just the fing plus some of the 830 00:39:30,520 --> 00:39:34,840 Speaker 1: stocks like Tesla, and it's it's inverse triple leverage inverse. 831 00:39:35,120 --> 00:39:37,680 Speaker 1: It's this thing is hard read, I mean, so we 832 00:39:37,719 --> 00:39:39,440 Speaker 1: went all out and just to prove that, hey, we 833 00:39:39,440 --> 00:39:42,200 Speaker 1: do cover the red lights every once in a while. 834 00:39:42,280 --> 00:39:43,680 Speaker 1: That was a cool one though. The red lights are 835 00:39:43,960 --> 00:39:46,520 Speaker 1: that's like the best ones. And by the way, shout 836 00:39:46,520 --> 00:39:48,759 Speaker 1: out to the art design team when you see these 837 00:39:48,840 --> 00:39:50,920 Speaker 1: that what they come up with is amazing. For the 838 00:39:50,960 --> 00:39:53,200 Speaker 1: fang d they had this cobra and like Neon, it 839 00:39:53,239 --> 00:39:55,640 Speaker 1: looked like there's stuck a club and add for a 840 00:39:55,640 --> 00:39:59,120 Speaker 1: cool club. All week It's like, oh yeah, and now 841 00:39:59,120 --> 00:40:01,719 Speaker 1: we get to do We did um and then we 842 00:40:01,760 --> 00:40:04,319 Speaker 1: did another good one. I thought the video game one 843 00:40:04,360 --> 00:40:06,719 Speaker 1: was amazing. That was the first one. And then VCR 844 00:40:07,360 --> 00:40:11,640 Speaker 1: VCR and they did like an eighties looking kind of format. 845 00:40:11,719 --> 00:40:14,440 Speaker 1: We have a trip, We have a trip. Scarlett, thanks 846 00:40:14,440 --> 00:40:15,800 Speaker 1: so much for joining us. Thank you, it was a 847 00:40:15,840 --> 00:40:22,440 Speaker 1: lot of fun. Thanks for listening to Trillions until next time. 848 00:40:22,480 --> 00:40:25,160 Speaker 1: We can find us on the Bloomberg terminal, Bloomberg dot com, 849 00:40:25,320 --> 00:40:28,560 Speaker 1: Apple Podcast, Spotify, and wherever else you like to listen. 850 00:40:29,040 --> 00:40:31,880 Speaker 1: We'd love to hear from you. We're on Twitter, I'm 851 00:40:31,920 --> 00:40:35,520 Speaker 1: at Joel Webber Show, He's at Eric Caltunist, and you 852 00:40:35,520 --> 00:40:39,319 Speaker 1: can find Scarlet at Scarlet Food. Trillions is produced by 853 00:40:39,360 --> 00:40:43,520 Speaker 1: Magnus Hendrickson. Jessica Levy is the head of Bloomberg Podcast. 854 00:40:44,120 --> 00:40:44,200 Speaker 1: Ye