WEBVTT - Showtime with Scarlet Fu 0:00:05.800 --> 0:00:12.680 Welcome to Trance. I'm Joel Webber and I'm Eric Belcher. Eric, 0:00:12.800 --> 0:00:15.000 I am not alone in my love for you. I 0:00:15.040 --> 0:00:16.840 have to share my love with you with other people, 0:00:17.280 --> 0:00:18.960 and that Bloomberg. One of the people have to share 0:00:19.000 --> 0:00:21.919 my love with Thank you, is Scarlet Food, who you 0:00:22.000 --> 0:00:25.360 co host a show on Bloomberg TV with called E 0:00:25.440 --> 0:00:28.840 T F. I Q. Yeah, And for those who don't 0:00:28.840 --> 0:00:31.720 know Bloomberg TV, the shows on every Wednesday at one pm. 0:00:31.720 --> 0:00:34.199 It's only half an hour a week, but it is weekly. 0:00:34.760 --> 0:00:38.520 And like you, I mean, I'm in the weeds person 0:00:38.960 --> 0:00:41.640 and you guys are a little more mainstream. You're the 0:00:41.680 --> 0:00:45.519 Tony Romo to your Jim Nance. Yeah, exactly. That works well. 0:00:45.560 --> 0:00:47.400 You know, Scarlets like a kindred spirit of mine though, 0:00:47.400 --> 0:00:49.800 because she's not full. She's not an E T F junk, 0:00:50.440 --> 0:00:52.920 you're like full E T F. Absolutely, she's like half 0:00:52.920 --> 0:00:55.360 E T. I've pulled both you guys in pretty hard, 0:00:55.480 --> 0:00:57.280 Like there's some things you guys will pop out and 0:00:57.600 --> 0:00:59.880 I'm like, yeah, she's given in a little bit. You're 0:01:00.040 --> 0:01:02.120 three quarters nerds. I'd say at this point. You're not 0:01:02.200 --> 0:01:04.200 like me and Todd or or you know that gang, 0:01:04.240 --> 0:01:06.880 but you're you're getting there. Um. But you know what's 0:01:06.920 --> 0:01:10.759 interesting is the show is nearing its hundredth episode and congratulations, 0:01:11.040 --> 0:01:14.120 thank you. And there's a lot of crossover with this podcast, 0:01:14.160 --> 0:01:16.240 the show, and also my research. My main job is 0:01:16.240 --> 0:01:19.280 writing research, but those it's funny, like the guests on 0:01:19.280 --> 0:01:21.440 the show will say something and it will get my 0:01:21.520 --> 0:01:23.840 brain going and then I might use it here or 0:01:23.880 --> 0:01:26.559 in the research. And there's just nice synergy between all 0:01:26.640 --> 0:01:28.880 of these activities. UM and E t F i Q 0:01:29.040 --> 0:01:31.120 I think is a big part of it. And I think, um, 0:01:31.160 --> 0:01:33.280 it's different than this show because like, if I say 0:01:33.280 --> 0:01:35.560 something really crazy right now, we can just tell Magnus 0:01:35.600 --> 0:01:38.320 to edit it out. But on TV and there's no Yeah, 0:01:38.400 --> 0:01:40.840 they're a live Yeah. If you drop like an you know, 0:01:40.840 --> 0:01:42.840 an S bomb or something, it's so it's that's it. 0:01:43.040 --> 0:01:45.080 So in the spirit of that, we're gonna have Scarlett 0:01:45.120 --> 0:01:48.280 come on today and actually talk about some of the 0:01:48.360 --> 0:01:51.040 learnings that she's had about E t F S and 0:01:51.080 --> 0:01:54.440 also some highlights from the show. Yeah, I mean, Scarlett 0:01:54.840 --> 0:01:57.360 is so good at broadcast. I can tell you from 0:01:57.400 --> 0:02:00.080 somebody who's not in the broadcasting world, and neither of 0:02:00.160 --> 0:02:02.840 us are, but she is and it's a lot harder 0:02:02.840 --> 0:02:05.960 than it looks, but most broadcasters like Scarlett make it 0:02:05.960 --> 0:02:08.240 look easy the good ones, and so it has been 0:02:08.280 --> 0:02:10.600 a pleasure working with her. She's been very generous to 0:02:10.680 --> 0:02:13.160 just even let me hang around and be on the 0:02:13.160 --> 0:02:15.280 show every week. And we thought we'd go over some 0:02:15.400 --> 0:02:18.480 highlights of the first sort of one episodes that that 0:02:18.560 --> 0:02:19.960 stuck out to both of us. I get to watch 0:02:20.040 --> 0:02:22.000 it from time to time, but I've never actually asked 0:02:22.040 --> 0:02:26.120 you guys to to populate your favorite segments. I'm really 0:02:26.160 --> 0:02:27.720 looking forward to this one, and as we get into 0:02:27.720 --> 0:02:29.720 some of these clips, just know that from all different segments. 0:02:29.760 --> 0:02:31.280 But the way the show is kind of designed is 0:02:31.600 --> 0:02:33.560 starts with like a look at the flows, and then 0:02:33.560 --> 0:02:36.560 the A block. The first one is a guest who's 0:02:36.520 --> 0:02:38.480 sort of like how to play something. Bloomberg News is 0:02:38.520 --> 0:02:39.720 on there, so a lot of the guests we've had 0:02:39.720 --> 0:02:41.760 on are also on that show. Um. Then we have 0:02:41.760 --> 0:02:44.080 Passive Aggressive, which is where we look at the shots 0:02:44.120 --> 0:02:46.919 fired and the active and passive battle. And then the 0:02:47.000 --> 0:02:48.919 last segment is called the drill down, where we take 0:02:48.919 --> 0:02:50.959 one e TF throw it on the lab. I give 0:02:51.000 --> 0:02:52.919 my take, and then the issuers on there to sort 0:02:52.919 --> 0:02:55.480 of defend and get into, you know, the E t 0:02:55.600 --> 0:03:02.119 F and Y it's valuable little et dissection. This time 0:03:02.120 --> 0:03:07.359 on Trillions Showtime with Scarlet Food. Scarlett, Welcome to Trilliance. Thanks. 0:03:07.400 --> 0:03:09.160 I've been looking forward to this because I always hear 0:03:09.200 --> 0:03:12.079 about trillions from Eric on Mondays we have our conference 0:03:12.080 --> 0:03:14.120 call for E t F i Q, and he's always 0:03:14.120 --> 0:03:15.840 making references to trillions. So now I get to be 0:03:15.880 --> 0:03:18.160 a part of it. For the record, I'm still waiting 0:03:18.200 --> 0:03:19.960 for my invite to E t F i Q, but 0:03:20.000 --> 0:03:22.000 you know I won't hold that against either of you. Well, 0:03:22.040 --> 0:03:24.079 now that we've done this, I think that's the next No, 0:03:24.200 --> 0:03:27.720 don't don't. Let's let's keep it this way right. So, so, Scarlett, 0:03:27.880 --> 0:03:30.320 how did you discover the E t F Because you've 0:03:30.320 --> 0:03:32.679 been at Bloomberg longer than I've been at Bloomberg, I think, 0:03:33.120 --> 0:03:35.240 And how did this come to be that you got 0:03:35.240 --> 0:03:37.360 an interest in E t S. Well, I'd like to 0:03:37.440 --> 0:03:39.760 use a number of different functions to track what's going 0:03:39.760 --> 0:03:41.520 on in the stock market, and one of them is 0:03:41.840 --> 0:03:45.400 most us for and it looks at the most actively 0:03:45.400 --> 0:03:48.840 traded securities by value on any given day. And if 0:03:48.880 --> 0:03:51.840 you don't screen out anything. If you don't filter out anything, 0:03:52.040 --> 0:03:53.640 a bunch of E t F s are always at 0:03:53.640 --> 0:03:56.840 the top, and you know, um, around the financial crisis, 0:03:57.360 --> 0:03:59.240 it would be the same ones, the ones that bet 0:03:59.280 --> 0:04:02.760 against the finance chols and double inverse against the financials. 0:04:02.840 --> 0:04:05.160 And it was always kind of fascinating to me that 0:04:05.240 --> 0:04:06.720 there were these e t F s and that they 0:04:06.720 --> 0:04:10.120 were so heavily traded, and I was convinced that someone 0:04:10.160 --> 0:04:12.600 was losing a ton of money. I'm sure they were. Um. 0:04:12.720 --> 0:04:15.080 So I always had this idea that there's a lot 0:04:15.120 --> 0:04:16.640 more going on in the E t F world than 0:04:16.680 --> 0:04:20.280 we discussed, and every once a while we talked about it, 0:04:20.720 --> 0:04:23.720 but most of the focus was on individual companies, and 0:04:24.440 --> 0:04:26.280 at some point it seemed like we're missing the boat 0:04:26.320 --> 0:04:28.080 if we didn't talk about E t F and we 0:04:28.120 --> 0:04:30.280 only fixated on one or two companies. And how do 0:04:30.360 --> 0:04:33.440 you discover Eric? How did I discover Eric? That's a 0:04:33.440 --> 0:04:36.200 really good question. Um. At some point I think I 0:04:36.200 --> 0:04:38.000 gave him a call to find out how some E 0:04:38.120 --> 0:04:41.280 t F worked, and then he very he started talking. 0:04:42.560 --> 0:04:44.560 But that's just like, oh, let me tell you about myself, 0:04:45.600 --> 0:04:52.000 Jesus Christ. Yeah, Um, yeah, I remember I don't remember 0:04:52.000 --> 0:04:54.039 the first time we met or what happened, but I 0:04:54.080 --> 0:04:56.440 think I remember going on with you and Alex. You 0:04:56.480 --> 0:05:00.920 guys used to host a show in the afternoon or Yeah, 0:05:00.920 --> 0:05:04.160 Alex Steele and Um you were you guys were both 0:05:04.200 --> 0:05:06.400 pretty into it, like you would ask me back, because 0:05:07.000 --> 0:05:09.800 unless you're covering a company, it's very difficult to get 0:05:09.800 --> 0:05:12.640 asked on Bloomberg TV unless you're fed person or a 0:05:12.640 --> 0:05:15.560 company person. If you cover funds, it just doesn't come 0:05:15.600 --> 0:05:18.680 into their mindset often. So I was, you know, kind 0:05:18.720 --> 0:05:21.000 of the squeaky wheel, and some were more receptive than 0:05:21.040 --> 0:05:23.120 others to having somebody come on talk E T S. 0:05:23.200 --> 0:05:26.120 I think when E T S had, like um, when 0:05:26.120 --> 0:05:28.680 there was a real problem in the market, I think 0:05:28.720 --> 0:05:32.039 sometimes that's when you could really see because I would 0:05:32.040 --> 0:05:34.000 come over the trading volume, and I think going over, 0:05:34.040 --> 0:05:36.440 like you said, the trading volume started to sink into 0:05:36.440 --> 0:05:39.279 people that while these things trade more than Microsoft, you know, 0:05:39.320 --> 0:05:41.599 we really should incorporate them. So I I think I 0:05:41.680 --> 0:05:43.280 kind of maybe sold you a little bit. You were 0:05:43.360 --> 0:05:45.560 very nice to ask me back. Uh, you know, I 0:05:45.600 --> 0:05:50.800 think even said come back weekly at one point exactly 0:05:50.800 --> 0:05:55.080 what you said. So you start having an Eric on 0:05:55.240 --> 0:05:57.040 what what did you What did you learn about E 0:05:57.080 --> 0:06:00.440 T s um that it's a huge, vast world and 0:06:00.480 --> 0:06:03.360 there are a lot of crazy acronyms, and people say 0:06:03.360 --> 0:06:05.800 it in a way that you don't expect. So when 0:06:05.800 --> 0:06:08.200 did that become normal for you? Because there's the thing 0:06:08.240 --> 0:06:09.839 about the E T F thing that I felt like 0:06:10.000 --> 0:06:12.880 was like all these things I didn't understand and didn't know, 0:06:13.000 --> 0:06:14.440 and then all of a sudden it was like, oh, 0:06:14.800 --> 0:06:16.640 maybe on the other side and I know more than 0:06:16.680 --> 0:06:18.960 I thought I knew. Yeah, when when the acronyms start 0:06:19.000 --> 0:06:21.520 making sense to you and when you can reel them off? 0:06:21.560 --> 0:06:25.440 And you know, Eric has his three amigos right a 0:06:26.360 --> 0:06:31.279 spy voo and it was the last one. Oh, let's 0:06:31.279 --> 0:06:34.520 test your nerd them here spy voo And god, what 0:06:34.640 --> 0:06:36.920 is the last one? I can't remebv i vv Yeah, 0:06:36.960 --> 0:06:41.359 it's the three spfs. There's only three. I knew you 0:06:41.360 --> 0:06:44.000 you were deeper, more deeper in than you thought. The 0:06:44.000 --> 0:06:46.600 other the other day when she goes it was some 0:06:46.680 --> 0:06:49.840 kind of a I think it was the price competitive, 0:06:50.680 --> 0:06:52.760 the price ters ETF. She goes, this is a lot 0:06:52.839 --> 0:06:56.080 like mote, and I'm like, you know, that's dropping it, Yeah, 0:06:56.560 --> 0:07:01.160 dropping the knowledge. And also what's really amazing about Scarlett 0:07:01.240 --> 0:07:04.520 is especially in the B block, which is called passive aggressive. 0:07:04.800 --> 0:07:06.440 I came up with that name. By the way. It's 0:07:06.480 --> 0:07:09.880 so perfect, I know, uh, And it's so perfect about 0:07:09.880 --> 0:07:12.760 passive people coming on and you know they are there's 0:07:12.800 --> 0:07:18.120 an aggressive undertone, but everything sticks to her brain, even 0:07:18.240 --> 0:07:20.200 minute things, and she'll just figure out a way to 0:07:20.240 --> 0:07:22.600 put it into this perfect sentence that comes right back 0:07:22.640 --> 0:07:25.240 out and it's an amazing thing to watch. Decades of 0:07:25.280 --> 0:07:30.000 TV training at work. Okay, so let's go through a 0:07:30.120 --> 0:07:33.040 few of the different moments that you guys have had 0:07:33.040 --> 0:07:35.640 on E t F, I Q and and contextualize them 0:07:36.000 --> 0:07:38.400 so that there are some takeaways. So the first one 0:07:38.480 --> 0:07:41.120 you picked, um, we picked up about four or five. 0:07:41.160 --> 0:07:44.120 So you picked Ed Lopez talking about E s p O, 0:07:44.200 --> 0:07:45.840 which is the E sports to E t F. Why'd 0:07:45.880 --> 0:07:49.280 you pick this? Well, because thematic etms are fun and 0:07:49.480 --> 0:07:52.520 they're what makes sense to people. It's hard to explain 0:07:52.560 --> 0:07:54.679 a multi factor E t F to someone who doesn't 0:07:54.720 --> 0:07:56.120 know what E t F s are. But if you 0:07:56.200 --> 0:07:59.520 tell someone, hey, there's an there's an E t F 0:07:59.600 --> 0:08:02.000 of that trades like a stock and it's made up 0:08:02.080 --> 0:08:05.840 of all these companies that engage in or the business 0:08:05.880 --> 0:08:08.280 of e sports and video games. People can get their 0:08:08.320 --> 0:08:10.240 head around that. It's like, oh, it's a mutual fun 0:08:10.280 --> 0:08:13.200 but it trades like a stock. Okay, that's interesting. The 0:08:13.200 --> 0:08:15.160 thing with this, of course, is that you know, as 0:08:15.200 --> 0:08:17.840 a parent of two boys and eric, you can relate. 0:08:18.160 --> 0:08:19.840 You know, you see how much time your kids spent 0:08:19.920 --> 0:08:22.880 on video games. So you're thinking, there's definitely huge business 0:08:22.920 --> 0:08:25.600 prospects here. If you can isolate this segment of the 0:08:25.600 --> 0:08:27.640 market and just make it its own product, this thing 0:08:27.680 --> 0:08:30.440 will take off. You know. I think we're going towards 0:08:30.440 --> 0:08:32.880 the interactive media or this idea of a metaverse where 0:08:32.880 --> 0:08:35.800 people get their social entertainment and entertainment in general. There 0:08:35.840 --> 0:08:38.079 might be perception problem, but a lot of the advisors 0:08:38.080 --> 0:08:41.440 that we have talked to they have clients that have kids, 0:08:41.440 --> 0:08:43.760 and they have kids themselves that are playing video games, 0:08:44.200 --> 0:08:47.079 and so they really that the idea really resonates with them. 0:08:47.160 --> 0:08:50.000 And also interesting on this one is a recurring theme, 0:08:50.000 --> 0:08:53.040 which is trying to figure out when a product should 0:08:53.040 --> 0:08:56.000 work and doesn't and and vice versa. So that's where 0:08:56.040 --> 0:08:58.680 that came from. Because the video game ETF has just 0:08:58.760 --> 0:09:01.920 been an incredible warmer, but the assets haven't followed. Like 0:09:02.000 --> 0:09:05.360 with robotics and cybersecurity, the performances there and the numbers 0:09:05.400 --> 0:09:07.440 are massive. I mean I looked this up before I 0:09:07.440 --> 0:09:09.640 came on because I spent a lot of time prepping 0:09:09.960 --> 0:09:11.960 everything so that I don't sound dumb or look dumb 0:09:11.960 --> 0:09:16.080 on TV around podcasts. The video game industry was worth 0:09:16.160 --> 0:09:19.319 one thirty seven point nine billion dollars. The global film 0:09:19.320 --> 0:09:21.760 industry is worth a hundred thirty six billion dollars. So 0:09:21.880 --> 0:09:24.760 video games is bigger business than global Hollywood. But we 0:09:24.800 --> 0:09:26.600 don't treat it that way, we don't talk about it 0:09:26.640 --> 0:09:29.880 that way. This is serious money. This is a serious business, 0:09:30.200 --> 0:09:34.079 and yeah, it deserves And the biggest complaint I've heard 0:09:34.080 --> 0:09:36.760 on Twitter from tweeting up questions of why is the 0:09:36.800 --> 0:09:39.280 most advisors say I just can't have something with video 0:09:39.280 --> 0:09:41.640 game in it on a client statement. That's why we 0:09:41.679 --> 0:09:44.680 have to add that they're embarrassed about it. Yeah, career risk. 0:09:45.200 --> 0:09:47.560 Career risk of advisors, as you can tell, drives a 0:09:47.559 --> 0:09:52.439 lot of our contentment um speaking of esoteric and kind 0:09:52.440 --> 0:09:55.079 of unique theme products. The next I picked this one, 0:09:55.120 --> 0:09:59.319 which was John Bogel. We had yeah, rest in peace. 0:09:59.440 --> 0:10:02.280 Um we at him on and he obviously talks a 0:10:02.320 --> 0:10:04.000 lot about passive when he had when we had him on. 0:10:04.040 --> 0:10:06.880 But I picked a clip here where he kind of 0:10:06.920 --> 0:10:09.800 talks about some of these wacky theme ETFs and it's 0:10:09.880 --> 0:10:13.240 fascinating he knows these things are launching, like these are 0:10:13.280 --> 0:10:15.559 some really tiny products, and he was aware of this. 0:10:15.559 --> 0:10:18.679 This was maybe a year ago. And when you get 0:10:18.720 --> 0:10:21.839 into e t S and their rapid growth, it's become 0:10:21.960 --> 0:10:25.000 kind of a well, certainly become a marketing business where 0:10:25.080 --> 0:10:27.640 new ideas. You've seen the new funds that are coming out. 0:10:28.280 --> 0:10:32.760 We now have one that is, let's see short retail 0:10:33.320 --> 0:10:39.280 and long electronic marketing. Yeah, that's talk about the time 0:10:39.280 --> 0:10:42.000 of the product of the times. And we've got the 0:10:42.040 --> 0:10:46.120 Republican and the Democratic, a t S, drinkers, e t F, 0:10:46.200 --> 0:10:50.439 the distillers, and where it ends nobody knows. I love 0:10:50.480 --> 0:10:53.040 that he dropped the drinkers and distillers. That's the whiskey 0:10:53.040 --> 0:10:55.240 E t F. The fact that Bogel even knows that 0:10:55.320 --> 0:10:59.160 exists is fascinating because he is a legend and he's 0:10:59.200 --> 0:11:03.120 that that saw so interesting insight into just how closely 0:11:03.240 --> 0:11:06.200 watched watched it right. He had never lost a step 0:11:06.320 --> 0:11:08.480 every time we interviewed him. He was acute as ever, 0:11:08.840 --> 0:11:11.160 sharp whenever we talked to him. And of course he 0:11:11.200 --> 0:11:13.040 invented the index one. He wasn't a fan of e 0:11:13.080 --> 0:11:14.920 TF so the fact that he knows all these obscure 0:11:14.960 --> 0:11:18.000 e t fs, including Whiskey, which ended up folding right, 0:11:18.000 --> 0:11:20.280 I mean it shut down later on, is pretty amazing. 0:11:20.679 --> 0:11:22.800 My only regret about that interview is that we had 0:11:22.800 --> 0:11:26.280 all these technical difficulties and you know, Jack Bogel sitting 0:11:26.440 --> 0:11:29.840 in some room in Vanguard in Malvern, Pennsylvania, and the 0:11:29.920 --> 0:11:33.880 audio and kept cutting out, So we started the conversation 0:11:33.920 --> 0:11:35.000 that we had to stop it. We had to go 0:11:35.080 --> 0:11:37.080 to commercial break, we had to come back, and we 0:11:37.120 --> 0:11:39.440 started the conversation again, and then he disappeared again. It 0:11:39.520 --> 0:11:42.480 was a little bit of a technical snaffo. This was 0:11:42.520 --> 0:11:45.800 our third show or something, and I've been done segments, 0:11:45.840 --> 0:11:49.160 but I've never dealt with something like this live. And 0:11:49.200 --> 0:11:51.240 I remember you we had to do something, so you 0:11:51.240 --> 0:11:56.840 just started asking me about the Democrat Republican ETF and 0:11:56.880 --> 0:11:59.160 we just shot the breeze on this for about three 0:11:59.240 --> 0:12:02.040 or four minutes, just because something had to get filled 0:12:02.040 --> 0:12:04.439 and he came back. Then we put Kathy Wood somewhere 0:12:04.440 --> 0:12:06.120 in there. The whole show was a bit disjointed, but 0:12:06.760 --> 0:12:09.880 Tim uh Andreacchi fixed it in post work. I think 0:12:09.920 --> 0:12:12.960 it looked pretty natural when you saw it later. Yeah, 0:12:12.960 --> 0:12:14.760 the whole thing with live TV is that you kind 0:12:14.760 --> 0:12:16.960 of have to tap dance until someone tells you what 0:12:17.000 --> 0:12:19.240 to do, and the people who tell you what to 0:12:19.240 --> 0:12:21.160 do in the control room and they're trying to fix 0:12:21.200 --> 0:12:24.480 everything and they're talking to the directors, and until then 0:12:24.720 --> 0:12:27.000 you just keep talking. What's the secret to tap dance? 0:12:27.920 --> 0:12:30.280 You have to have a good co pilot. So you know, 0:12:30.480 --> 0:12:32.680 Eric and me up on the set, that was not 0:12:32.720 --> 0:12:35.480 a problem. We could talk about something anything for hours, 0:12:35.840 --> 0:12:37.240 as long as you just keep going. He used to 0:12:37.280 --> 0:12:42.720 tell me the same thing. I sent some hostility, Okay. 0:12:42.760 --> 0:12:45.520 Next next I picked was Kathy would Um. We had 0:12:45.559 --> 0:12:48.280 her on the podcast recently. She is probably the guest 0:12:48.320 --> 0:12:50.880 we've had on the most. Yeah, how many appearances Remember 0:12:50.920 --> 0:12:54.000 on SNL when Tom Hanks was on and he he 0:12:54.040 --> 0:12:57.040 called the five timer Club. Alex Baldwin was on more though, 0:12:57.080 --> 0:12:58.959 I think, Yeah, this was back in the nineties, that 0:12:59.080 --> 0:13:01.400 before Alec Baldman at all the show in our age. 0:13:02.559 --> 0:13:04.560 So I think she might be a four timer, like 0:13:04.640 --> 0:13:07.120 she's been on a lot. And the reason is because 0:13:07.160 --> 0:13:10.560 she's she knows how to say things that she's just 0:13:10.960 --> 0:13:13.920 good on TV and provocative and provocative, and her product 0:13:14.160 --> 0:13:16.400 is is a is a hit. You know that helps, 0:13:16.440 --> 0:13:20.040 but um, you know, to me, she's embodies what you 0:13:20.080 --> 0:13:22.320 want out of a guest. I picked a clip of 0:13:22.360 --> 0:13:26.160 her calling Amazon deep value. We believe if you look 0:13:26.240 --> 0:13:29.240 at our portfolio and you do a correct analysis a 0:13:29.320 --> 0:13:33.160 long term time horizon discounted cash flows, that we actually 0:13:33.160 --> 0:13:35.920 are a deep value portfolio. I know that sounds crazy, 0:13:36.080 --> 0:13:40.240 but given the opportunities and these innovation platforms and the 0:13:40.360 --> 0:13:42.720 kind of growth they're going to generate during the next 0:13:42.800 --> 0:13:48.640 fifteen years, we think that market does is not pricing 0:13:48.720 --> 0:13:51.560 our stocks even now efficiently. You know, I shouldn't have 0:13:51.600 --> 0:13:55.240 just said I shows that what that's kind of your 0:13:55.360 --> 0:13:57.960 version of that, Like usually I subdued that. I can 0:13:58.000 --> 0:14:01.200 do the mapping, and you definitely react did more than 0:14:01.240 --> 0:14:03.280 you did on that. I mean, anybody would have. She 0:14:03.400 --> 0:14:05.520 called Amazon at deep valley stock, which I don't think 0:14:05.520 --> 0:14:07.760 I've ever heard anyone to. I mean but he speaks 0:14:07.800 --> 0:14:10.960 to I think Kathy, who can make really bold things 0:14:10.960 --> 0:14:13.439 and then sort of back it up with her performance. Well, 0:14:13.480 --> 0:14:15.920 the interesting thing about Kathy is that, and Eric and 0:14:15.920 --> 0:14:17.920 I were talking about this earlier, she's a bull. She's 0:14:17.960 --> 0:14:20.600 an unabashed bull. But it's hard to be a bull, 0:14:20.640 --> 0:14:22.400 and it's hard to sound smart when you're a bull. 0:14:22.560 --> 0:14:25.400 All the bears sound really smart, right, because you're poking 0:14:26.320 --> 0:14:29.320 in people's arguments. But if you're making the case and 0:14:29.400 --> 0:14:34.120 you're speaking with conviction and you're enthusiastic and optimistic, you 0:14:34.200 --> 0:14:37.680 get invited back to et f I Q that if 0:14:37.680 --> 0:14:41.160 you're articulate. But also it's easy for people to to 0:14:41.240 --> 0:14:43.480 say to be to say you don't know what you're 0:14:43.480 --> 0:14:45.720 talking about, like that doesn't make sense, that doesn't make sense, 0:14:45.720 --> 0:14:49.080 and like tear you apart. In markets, if you know 0:14:49.120 --> 0:14:51.920 the market is going to go down eventually, and it's 0:14:51.960 --> 0:14:54.800 a tire wind for the naysayers, and it's a weak 0:14:54.920 --> 0:14:56.840 place to go in my opinion, and no one ever 0:14:56.880 --> 0:14:58.680 comes back and says, hey, you said the market was 0:14:58.680 --> 0:15:00.600 going to go down, and it's now five years later 0:15:00.600 --> 0:15:03.080 it's up a hundred percent. My opportunity costs for listening 0:15:03.120 --> 0:15:05.640 to you is a lot. Nobody ever rates that article 0:15:06.160 --> 0:15:08.240 and hits the naysayers over the head with that. I 0:15:08.280 --> 0:15:10.720 don't know why Opportunity Costs is left it, but I 0:15:10.800 --> 0:15:12.320 agree with you it's harder to be a Kathy. What 0:15:12.520 --> 0:15:14.720 other thing about Cathy that's interesting to me is and 0:15:14.720 --> 0:15:16.640 we talked about this a lot. If the person is 0:15:16.680 --> 0:15:18.280 at the top of the food chain of the company, 0:15:18.320 --> 0:15:21.320 whether that's a one person shop or bogel at like 0:15:21.400 --> 0:15:24.480 you know, thousands of employees, they're the best guests because 0:15:24.520 --> 0:15:26.800 they do not have anyone to answer to. It's the 0:15:26.840 --> 0:15:29.120 mid level they come in. You can see the lawyers 0:15:29.120 --> 0:15:31.320 in their head as they're answering a question. Now you 0:15:31.320 --> 0:15:33.400 can see the pr people on this side. They're literally 0:15:33.400 --> 0:15:37.600 on the side. So that's what makes Cathy also good 0:15:37.720 --> 0:15:40.440 is that she's running the shop there and is very 0:15:40.520 --> 0:15:42.560 much looser with what she's saying. You can say whatever 0:15:42.600 --> 0:15:45.320 she wants. No one's gonna stop her. Next up, we 0:15:45.360 --> 0:15:47.600 have this is a good one. Remember x I V. 0:15:47.760 --> 0:15:50.440 We've talked about. We had the maker of x I V, 0:15:50.600 --> 0:15:53.440 Nick Turney, on the show two weeks before x I 0:15:53.520 --> 0:15:56.640 V imploded, And I'm proud to say we handled it 0:15:56.680 --> 0:15:58.600 with a lot of caution. We we use it in 0:15:58.600 --> 0:16:01.760 the drill down, we talked, we showed the drawdowns. And 0:16:01.800 --> 0:16:05.600 then here's Nick answering Scarlett's question about, you know, how 0:16:05.640 --> 0:16:09.480 safe is this product so it holds up? It does? 0:16:09.520 --> 0:16:11.320 I mean, I wouldn't have if I'll be the judge 0:16:11.320 --> 0:16:15.480 of that, Nick, how dangerous is this et F going 0:16:15.520 --> 0:16:18.560 to be when the VIX spikes and stays high? Yeah, 0:16:18.560 --> 0:16:22.720 I mean obviously, selling volatility, as Eric mentioned, is designed 0:16:22.720 --> 0:16:25.520 for trading um. It's it's certainly not a buy and 0:16:25.600 --> 0:16:29.120 hold strategy. If you want to look back in history, 0:16:29.600 --> 0:16:32.160 you can really the last real volatility event we had 0:16:32.200 --> 0:16:34.800 was two thousand eleven UM, and since then it's been 0:16:34.920 --> 0:16:38.440 pretty unexciting in the ball markets. Uh. In two thousand eleven, 0:16:38.480 --> 0:16:40.800 shorting Vic's futures with a daily reset you would have 0:16:40.800 --> 0:16:44.480 been down about but even if you bought at the 0:16:44.560 --> 0:16:48.520 peak just before that, you're up about seven despite that 0:16:48.600 --> 0:16:52.120 draw down. So UM, there's very significant drawn risks in 0:16:52.400 --> 0:16:55.800 in shorting volatility, But as Eric mentioned, there's quite a 0:16:55.800 --> 0:16:58.240 significant premium that comes from rolling those futures and being 0:16:58.240 --> 0:17:01.080 willing to sell that. Two weeks later, the Eagles win 0:17:01.080 --> 0:17:02.920 the super Bowl and x I V goes away that 0:17:03.920 --> 0:17:05.879 you were out of work that day. I did. I 0:17:05.880 --> 0:17:08.240 took the Monday off after the super Bowl because I 0:17:08.280 --> 0:17:10.280 was gonna. I was up till four in the morning 0:17:10.680 --> 0:17:12.960 and I wanted to watch all the sports shows to 0:17:13.080 --> 0:17:16.680 just relish and wop. And something happened. Yeah. I started 0:17:16.680 --> 0:17:18.720 to get a call from I think Luke Kawa emailed 0:17:18.720 --> 0:17:20.119 me to see if I could come, and I was like, 0:17:20.160 --> 0:17:22.359 what's going on? And then the whole rest of the 0:17:22.359 --> 0:17:24.880 week was like all hands on deck. I did get 0:17:24.880 --> 0:17:27.080 a lot of TV asks that week, because that's the 0:17:27.119 --> 0:17:29.480 good news about some of those emplosions, you know, high 0:17:29.920 --> 0:17:32.280 you know, I mean x I V did exactly what 0:17:32.320 --> 0:17:34.000 it said it was gonna do. It had the termination 0:17:34.040 --> 0:17:37.520 event written in there. You know, just because something goes 0:17:37.560 --> 0:17:40.880 down doesn't mean it's bad. I think sometimes people associate 0:17:40.920 --> 0:17:44.200 that. That That said, and E t F is so easy 0:17:44.240 --> 0:17:46.560 to access. You just hit by and then now all 0:17:46.560 --> 0:17:49.520 of a sudden you own this highly complex, complex strategy. 0:17:49.800 --> 0:17:51.600 That is why X I V is why we came 0:17:51.680 --> 0:17:53.720 up with the rating system. So we think X I 0:17:53.800 --> 0:17:55.960 V s are okay, they just need to be rated R. 0:17:56.680 --> 0:17:58.800 Then then everybody can kind of feel for what they're 0:17:58.800 --> 0:18:01.560 getting into. But that's part of the argument. There is X, 0:18:01.560 --> 0:18:04.679 I V the E t F that your dad bought. No, 0:18:06.400 --> 0:18:10.080 that was t VX that that's product. Also that bets on. 0:18:10.359 --> 0:18:14.840 Did your dad of a t VIX tattoo? Yet? No? 0:18:15.000 --> 0:18:20.200 I mean, poor poor t VIX has the opposite problem. 0:18:20.240 --> 0:18:24.080 On that day it did great, probably up six or something, um, 0:18:24.119 --> 0:18:27.160 But every other day it just bleeds money quickly. And 0:18:27.440 --> 0:18:29.040 dad had one of those. Yeah, he bought and hold 0:18:29.080 --> 0:18:31.480 it like an idiot, and I told him not to. Yeah, 0:18:31.600 --> 0:18:33.480 very clearly, Nick Turney said, this is not a buy 0:18:33.520 --> 0:18:43.080 and hold investment. UM. Next up is John Davy, who 0:18:43.520 --> 0:18:45.760 is a We've had him on a couple of times now. 0:18:45.800 --> 0:18:47.800 He's the perfect A block guest. He's what they call 0:18:47.800 --> 0:18:51.520 an E t F strategist advisors and EF strategist invest 0:18:51.600 --> 0:18:53.639 in ETFs. So we have these issues on all the time, 0:18:53.680 --> 0:18:55.600 and of course they're just pitching and pitching and pitching. 0:18:56.200 --> 0:18:58.720 He comes in and all he does is pick ETF. 0:18:58.840 --> 0:19:01.440 So he he goes through he's like a you know, 0:19:01.480 --> 0:19:05.720 you ever go to the video store, editors employees picks 0:19:06.280 --> 0:19:08.480 these strategies will come on with products that are way 0:19:08.520 --> 0:19:10.720 beyond SPY and i WM, And that's why we like 0:19:10.760 --> 0:19:13.440