1 00:00:00,400 --> 00:00:03,840 Speaker 1: Strap on your parachute. It's time for What Goes Up 2 00:00:04,120 --> 00:00:13,800 Speaker 1: with Sarah Ponzick and Mike Reagan. Hello and welcome to 3 00:00:13,840 --> 00:00:17,320 Speaker 1: What goes Up, a Bloomberg weekly market podcast. I'm Sarah put, 4 00:00:17,600 --> 00:00:20,360 Speaker 1: a reporter on the Cross Asset team, and I'm Mike Reagan, 5 00:00:20,520 --> 00:00:23,320 Speaker 1: a senior editor at Bloomberg. This week on the show, 6 00:00:23,600 --> 00:00:25,720 Speaker 1: what a year it has been and now there's just 7 00:00:25,800 --> 00:00:28,600 Speaker 1: one week left Still the holiday season hasn't slowed the 8 00:00:28,600 --> 00:00:31,560 Speaker 1: news flow too much, with Congress finally passing a stimulus 9 00:00:31,560 --> 00:00:34,960 Speaker 1: bill and a new strain of the virus now causing concerns. 10 00:00:35,320 --> 00:00:39,959 Speaker 1: With all the hope and optimism circulating, how different will 11 00:00:40,000 --> 00:00:42,440 Speaker 1: the year truly be? Our guests will share with us 12 00:00:42,479 --> 00:00:45,519 Speaker 1: the key themes for how to invest for success in 13 00:00:45,560 --> 00:00:48,560 Speaker 1: the year head and as always, will close out the 14 00:00:48,680 --> 00:00:52,159 Speaker 1: episode with our gimmick I mean tradition, Sarah, not gimmick. 15 00:00:52,600 --> 00:00:55,680 Speaker 1: The craziest thing I saw in markets this week, and 16 00:00:56,560 --> 00:00:58,280 Speaker 1: I got a decent one short. I don't know about you. 17 00:00:58,280 --> 00:01:00,680 Speaker 1: I got one from Twitter, So I'm starting to finally 18 00:01:00,720 --> 00:01:04,040 Speaker 1: feel those Twitter crazy things that you've been reaping the 19 00:01:04,080 --> 00:01:06,080 Speaker 1: benefits of for so long. So I got a good 20 00:01:06,120 --> 00:01:08,680 Speaker 1: one now, I'll go ahead and say a flat out 21 00:01:08,680 --> 00:01:10,760 Speaker 1: I think decent is a good way to describe mine 22 00:01:10,760 --> 00:01:13,000 Speaker 1: this week. I'm not gonna say it's above and beyond, 23 00:01:13,080 --> 00:01:15,800 Speaker 1: not not gonna hype it up too much. It's decent. 24 00:01:16,040 --> 00:01:19,200 Speaker 1: You're setting the setting the bar low. You're like a 25 00:01:19,200 --> 00:01:23,760 Speaker 1: Wall Street analyst, you're setting managing expectations. But this week 26 00:01:23,800 --> 00:01:26,240 Speaker 1: on the show for the first time, we're very happy 27 00:01:26,440 --> 00:01:30,360 Speaker 1: to have her. She's the head of thematic Strategy at 28 00:01:30,480 --> 00:01:35,119 Speaker 1: JP Morgan Private Bank. Her name is Anastasia amar rosso. 29 00:01:35,280 --> 00:01:37,560 Speaker 1: Ata says, you're welcome to the show. Great to see you, 30 00:01:37,720 --> 00:01:39,800 Speaker 1: good to be with you. Yeah, it's it's great to 31 00:01:39,840 --> 00:01:42,000 Speaker 1: have you on the show. You know, at a stagia, 32 00:01:42,040 --> 00:01:46,199 Speaker 1: I'm thinking boy as first, thematic investing goes one theme 33 00:01:46,319 --> 00:01:49,040 Speaker 1: kind of stands out above all others this year, you know, 34 00:01:49,080 --> 00:01:51,920 Speaker 1: the whole virus and the stay at home versus the 35 00:01:51,920 --> 00:01:55,600 Speaker 1: reopening stocks. But I'm just curious how you're thinking about 36 00:01:55,800 --> 00:01:59,040 Speaker 1: sort of the state of the markets right now. Um, 37 00:01:59,120 --> 00:02:01,960 Speaker 1: the viruses flow airing up. Obviously, we have this new 38 00:02:02,080 --> 00:02:04,800 Speaker 1: strain in the UK people seem to be worried about. 39 00:02:05,520 --> 00:02:10,359 Speaker 1: We finally got some fiscal stimulus, another fiscal stimulus package 40 00:02:10,400 --> 00:02:14,720 Speaker 1: out of Washington. What's next? I mean, is the stimulus 41 00:02:14,760 --> 00:02:17,560 Speaker 1: almost people worried it's to sell the news event. Do 42 00:02:17,560 --> 00:02:19,119 Speaker 1: you feel like it's it's hard to sort of get 43 00:02:19,120 --> 00:02:22,280 Speaker 1: people excited about the near future now, and so we 44 00:02:22,320 --> 00:02:25,560 Speaker 1: actually start to get in one and see if the 45 00:02:25,639 --> 00:02:28,560 Speaker 1: virus really is going away at sort of the fast 46 00:02:28,600 --> 00:02:30,840 Speaker 1: pace that we hope it will with the vaccines. How 47 00:02:30,840 --> 00:02:32,840 Speaker 1: are you start of looking at the next couple of 48 00:02:32,919 --> 00:02:35,760 Speaker 1: months in terms of the markets. Yeah, Mike, it's a 49 00:02:35,840 --> 00:02:38,640 Speaker 1: good question. You know, here we are, we just got 50 00:02:38,680 --> 00:02:41,400 Speaker 1: this fiscal stimulus that we've been waiting for for weeks 51 00:02:41,400 --> 00:02:43,400 Speaker 1: and months. In the markets are kind of taking this 52 00:02:43,480 --> 00:02:46,160 Speaker 1: in strida, maybe shrugging their shoulders a little bit. And 53 00:02:46,200 --> 00:02:49,000 Speaker 1: I think the reason for that is because the expectations 54 00:02:49,080 --> 00:02:51,799 Speaker 1: for that stimulus have been building for some time, so 55 00:02:52,080 --> 00:02:54,640 Speaker 1: it is to sell the news sort of event. So 56 00:02:54,680 --> 00:02:57,400 Speaker 1: I want to emphasize a couple of points about it. 57 00:02:57,520 --> 00:03:00,160 Speaker 1: First of all, it had to happen, so we're not 58 00:03:00,240 --> 00:03:04,120 Speaker 1: kind of experiencing the markets bounce on the news because 59 00:03:04,120 --> 00:03:06,639 Speaker 1: I was largely baked in. But how did it not happened? 60 00:03:06,680 --> 00:03:09,119 Speaker 1: I think this would have been a pretty negative development. 61 00:03:09,160 --> 00:03:11,480 Speaker 1: For the market. So I am glad that Congress got 62 00:03:11,480 --> 00:03:14,280 Speaker 1: it done. And then the second point here, as you 63 00:03:14,320 --> 00:03:18,800 Speaker 1: think of the economy and the individuals that are collecting 64 00:03:18,800 --> 00:03:22,640 Speaker 1: those unemployment benefits, this had to happen because the reality 65 00:03:22,800 --> 00:03:24,560 Speaker 1: is the next couple of months are going to be 66 00:03:24,639 --> 00:03:27,640 Speaker 1: tough for the economy, and we're starting to see this 67 00:03:27,720 --> 00:03:29,799 Speaker 1: and some of the alternative data we look at, We'll 68 00:03:29,800 --> 00:03:33,560 Speaker 1: look at mobility indicators, we'll look at restaurant bookings, and 69 00:03:33,680 --> 00:03:36,400 Speaker 1: all of those is suggesting that we're likely going to 70 00:03:36,440 --> 00:03:40,040 Speaker 1: see some downside surprises to our payroll numbers. So I'm 71 00:03:40,120 --> 00:03:42,680 Speaker 1: glad it happened for the economy. I'm glad it happened 72 00:03:42,720 --> 00:03:45,640 Speaker 1: for the individuals that are in these hard impacted sectors, 73 00:03:45,960 --> 00:03:49,320 Speaker 1: and I'm also glad that it did happen for the markets. Now, 74 00:03:49,560 --> 00:03:52,680 Speaker 1: having said that, the biggest force that we're going to 75 00:03:52,760 --> 00:03:55,320 Speaker 1: be looking for next year, of course, is the vaccine. 76 00:03:55,840 --> 00:03:59,280 Speaker 1: And the vaccine Trump's a lot of things, including those 77 00:03:59,400 --> 00:04:02,880 Speaker 1: alternative day indicators, and including the lockdowns, and including the 78 00:04:02,880 --> 00:04:06,240 Speaker 1: physical stimulus. If we can get not to but three 79 00:04:06,320 --> 00:04:09,120 Speaker 1: or four, maybe five vaccines rolled out to the world 80 00:04:09,120 --> 00:04:12,800 Speaker 1: population next year, that's really going to be the game changer, 81 00:04:12,920 --> 00:04:15,120 Speaker 1: and that's what I think the markets are looking forward to. 82 00:04:15,920 --> 00:04:18,279 Speaker 1: So with that said, a lot of investors, a lot 83 00:04:18,320 --> 00:04:21,479 Speaker 1: of strategists that I hear from, commonly look to the 84 00:04:21,560 --> 00:04:24,000 Speaker 1: vaccine and the hopes of the vaccine that we get 85 00:04:24,000 --> 00:04:27,240 Speaker 1: it finally rolled out, maybe through mid next year, and 86 00:04:27,279 --> 00:04:29,640 Speaker 1: that would be great for market, it's great for the economy, 87 00:04:29,720 --> 00:04:32,279 Speaker 1: and they say that that is a reason to start 88 00:04:32,400 --> 00:04:37,200 Speaker 1: rotating into more cyclical assets. We've seen it, uh in 89 00:04:37,480 --> 00:04:40,440 Speaker 1: the end of we saw this rotation really take hold 90 00:04:40,480 --> 00:04:43,640 Speaker 1: of financials and energy, you name it. But something that 91 00:04:43,720 --> 00:04:45,160 Speaker 1: really stuck out to me and the notes that were 92 00:04:45,160 --> 00:04:48,040 Speaker 1: sent over to us before the podcast, is that you say, 93 00:04:48,200 --> 00:04:50,080 Speaker 1: we think the best place to look for stocks that 94 00:04:50,120 --> 00:04:53,680 Speaker 1: could double, triple or quadruple are in these three megatrends, 95 00:04:53,680 --> 00:04:55,039 Speaker 1: and I do want to get all three of them, 96 00:04:55,279 --> 00:04:59,520 Speaker 1: Digital transformation, healthcare, innovation, and sustainability, and focusing on the 97 00:04:59,560 --> 00:05:04,720 Speaker 1: first digital transformation. In comparison with this idea of a rotation, 98 00:05:05,960 --> 00:05:07,520 Speaker 1: is it true that we are going to see this 99 00:05:07,640 --> 00:05:11,960 Speaker 1: rotation away from digital transformation, away from big tech, away 100 00:05:11,960 --> 00:05:14,800 Speaker 1: from smaller technology companies to when it's something that is 101 00:05:14,839 --> 00:05:17,880 Speaker 1: just so entrenched in our economy these days. Yes, Sarah, 102 00:05:17,920 --> 00:05:21,200 Speaker 1: it's really hard to envision that when we transition away 103 00:05:21,279 --> 00:05:25,279 Speaker 1: from this digital transformation megatrend. And the reason I say 104 00:05:25,320 --> 00:05:28,240 Speaker 1: that is the whole term megatrend really means that these 105 00:05:28,240 --> 00:05:31,200 Speaker 1: are durable and secular forces that are going to change 106 00:05:31,200 --> 00:05:33,919 Speaker 1: in shape and disrupt our world in our lives for 107 00:05:34,080 --> 00:05:36,760 Speaker 1: years to come, so years, not quarters, and not even 108 00:05:36,800 --> 00:05:38,360 Speaker 1: a couple of years, but really for the next three 109 00:05:38,400 --> 00:05:41,159 Speaker 1: to five years. So this notion of digital transformation is 110 00:05:41,200 --> 00:05:43,960 Speaker 1: not going to go away next year, even though we've 111 00:05:43,960 --> 00:05:45,839 Speaker 1: done so much of it this year. But it's going 112 00:05:45,920 --> 00:05:49,240 Speaker 1: to evolve and it's going to transition. If you think 113 00:05:49,279 --> 00:05:52,880 Speaker 1: about what we digital transform this year is the work 114 00:05:52,920 --> 00:05:55,960 Speaker 1: from home. This is spent from home and the workout 115 00:05:56,040 --> 00:05:59,320 Speaker 1: from home types of industries. And I do think it 116 00:05:59,440 --> 00:06:01,599 Speaker 1: is time to perhaps lightened up on some of those 117 00:06:01,640 --> 00:06:04,400 Speaker 1: exposures that have to do with our ability to function 118 00:06:04,800 --> 00:06:08,680 Speaker 1: uh in a home setting. However, there's many more verb 119 00:06:08,800 --> 00:06:12,000 Speaker 1: industry verticals that have yet to be a digital transformed, 120 00:06:12,520 --> 00:06:15,479 Speaker 1: and one particular one that we're looking for is the 121 00:06:15,520 --> 00:06:18,480 Speaker 1: factory floor and the so called factory of the future. 122 00:06:19,240 --> 00:06:21,520 Speaker 1: You know, if you think about the manufacturing sector, Obviously 123 00:06:21,560 --> 00:06:23,640 Speaker 1: it was hit hard this year and it's now rebounding. 124 00:06:23,880 --> 00:06:26,960 Speaker 1: But the manufacturing sector has been in a precarious situation 125 00:06:27,000 --> 00:06:31,000 Speaker 1: since two thousand eleven because the productivity in the manufacturing 126 00:06:31,040 --> 00:06:35,360 Speaker 1: sector has not actually risen since. And as you think 127 00:06:35,400 --> 00:06:39,000 Speaker 1: about building the factory of the future, you realize that 128 00:06:39,320 --> 00:06:42,960 Speaker 1: robotics and automation and embedding five G and allowing those 129 00:06:43,040 --> 00:06:45,080 Speaker 1: robots to run in five G that could be a 130 00:06:45,200 --> 00:06:49,679 Speaker 1: significant productivity boost. For example, we're looking for cost savings 131 00:06:49,680 --> 00:06:51,760 Speaker 1: from automation to be around eight and a half percent, 132 00:06:52,040 --> 00:06:55,719 Speaker 1: and we're looking for productivity gains to be around twenty percent. 133 00:06:56,240 --> 00:06:59,400 Speaker 1: So here we are in the cyclical environment where we 134 00:06:59,560 --> 00:07:02,520 Speaker 1: just in the early part of the cycle and companies 135 00:07:02,520 --> 00:07:06,160 Speaker 1: are trying to rebuild their earnings growth streams, and one 136 00:07:06,200 --> 00:07:08,880 Speaker 1: way that they may be thinking about doing that is 137 00:07:08,880 --> 00:07:12,559 Speaker 1: actually embedding more robotics and more automation because that does 138 00:07:13,000 --> 00:07:17,000 Speaker 1: pay a return on investment. So I think that's one 139 00:07:17,040 --> 00:07:18,600 Speaker 1: of the angles that we want to take with digital 140 00:07:18,640 --> 00:07:24,160 Speaker 1: transformation in because we like industrials, but we also like 141 00:07:24,280 --> 00:07:28,040 Speaker 1: the secular flavor to these industrials with digital twins, software 142 00:07:28,280 --> 00:07:31,440 Speaker 1: and then robotics and automation of course, yeah, Station, I 143 00:07:31,440 --> 00:07:34,280 Speaker 1: want to get to your teams for for next year too, 144 00:07:34,320 --> 00:07:37,360 Speaker 1: because one of them, one line really popped out at me, 145 00:07:37,440 --> 00:07:41,840 Speaker 1: is pretty interesting. Investors should consider using leverage next year, 146 00:07:41,920 --> 00:07:44,560 Speaker 1: And I find that fascinating because I feel like a 147 00:07:44,600 --> 00:07:46,680 Speaker 1: lot of people are scared to death of just the 148 00:07:46,680 --> 00:07:50,880 Speaker 1: word leverage. You know, obviously can compound your gains, but 149 00:07:50,960 --> 00:07:54,680 Speaker 1: also risky on the downside. What is it about sort 150 00:07:54,720 --> 00:07:57,680 Speaker 1: of the current environment? I mean, I assume these rock 151 00:07:57,720 --> 00:08:00,400 Speaker 1: bottom interest rates are part of it and a decent 152 00:08:00,640 --> 00:08:05,040 Speaker 1: macro outlook for But walk us through sort of why 153 00:08:05,080 --> 00:08:07,360 Speaker 1: it's a good environment to think about leverage and how 154 00:08:07,400 --> 00:08:10,880 Speaker 1: you would sort of advise clients to to go about that. Sure, Mike, 155 00:08:10,960 --> 00:08:13,080 Speaker 1: I think it's the right question to ask, in the 156 00:08:13,200 --> 00:08:15,120 Speaker 1: right disclaimer to put in front of it is we 157 00:08:15,160 --> 00:08:18,640 Speaker 1: absolutely have to be careful and thoughtful about how we 158 00:08:18,720 --> 00:08:21,960 Speaker 1: deploy leverage. But the reason why we're having this discussion 159 00:08:22,000 --> 00:08:24,920 Speaker 1: today is because this has actually been a phenomenal year 160 00:08:25,000 --> 00:08:28,600 Speaker 1: for fixed income and yields have plummeted, which is not 161 00:08:28,720 --> 00:08:31,880 Speaker 1: all that phenomenal, but it has led to phenomenal returns 162 00:08:31,920 --> 00:08:35,880 Speaker 1: for investors. But with yields now really at these very 163 00:08:35,960 --> 00:08:40,239 Speaker 1: very low levels across the curves and across the credit spectrum, 164 00:08:40,559 --> 00:08:44,920 Speaker 1: Investors are looking for opportunities for yield, and one of 165 00:08:45,000 --> 00:08:47,439 Speaker 1: the ways. One of the opportunities to boost yield is 166 00:08:47,480 --> 00:08:49,400 Speaker 1: of course to deploy a little bit of leverage in 167 00:08:49,480 --> 00:08:53,439 Speaker 1: turn of leverage whatever is prudent, but also boost your returns. UH. 168 00:08:53,480 --> 00:08:56,760 Speaker 1: The reason why we think this is an opportune environment 169 00:08:56,840 --> 00:08:59,880 Speaker 1: to do that, it's because from the economic standpoint, I 170 00:09:00,000 --> 00:09:02,320 Speaker 1: think we're going to be in a more stable place 171 00:09:02,360 --> 00:09:06,200 Speaker 1: in so we shouldn't have to worry about credit events. 172 00:09:06,640 --> 00:09:09,680 Speaker 1: And when we talk about applying leverage, the types of 173 00:09:09,800 --> 00:09:13,199 Speaker 1: bonds that we'd want to buy or high quality investment 174 00:09:13,240 --> 00:09:16,440 Speaker 1: grade or very high quality opportunity high yield bonds. So 175 00:09:16,480 --> 00:09:19,240 Speaker 1: you're managing the credit risk very carefully. But on the 176 00:09:19,280 --> 00:09:22,280 Speaker 1: other side, UM, you know, they concern about deploying leverage 177 00:09:22,360 --> 00:09:24,440 Speaker 1: is what if you have interest rate shootout or what 178 00:09:24,559 --> 00:09:26,720 Speaker 1: if you have a market risk off event, or what 179 00:09:26,840 --> 00:09:29,760 Speaker 1: if the FED raises raised? And none of those are 180 00:09:29,840 --> 00:09:34,440 Speaker 1: really issues that are likely to play out in so 181 00:09:34,520 --> 00:09:37,240 Speaker 1: you take an advantage of these rock bottom rates and 182 00:09:37,320 --> 00:09:39,920 Speaker 1: you're probably boosting your yield by one and a half 183 00:09:40,000 --> 00:09:43,320 Speaker 1: or two percentage points. Okay, So, so I should not 184 00:09:43,360 --> 00:09:46,200 Speaker 1: take out a margin loan to buy a triple levered 185 00:09:46,800 --> 00:09:51,439 Speaker 1: bitcoin exposed et F or TESSLA or something like that. 186 00:09:51,600 --> 00:09:56,960 Speaker 1: That is not the recommendation. You're reading deep into these 187 00:09:56,960 --> 00:10:00,360 Speaker 1: notes and reading what you want to see. My not 188 00:10:00,600 --> 00:10:05,080 Speaker 1: in there. But high quality, high yield investment grade is 189 00:10:05,120 --> 00:10:10,360 Speaker 1: certainly some fine. As Sarah knows, I love the three 190 00:10:10,480 --> 00:10:12,680 Speaker 1: x CTF. I'm a big fin he does he, he 191 00:10:12,760 --> 00:10:15,680 Speaker 1: loves his three x cts. Mike, Mike amps up the level. 192 00:10:17,040 --> 00:10:37,880 Speaker 1: That's just a joke for everyone listening. Clearly, with fixed 193 00:10:37,880 --> 00:10:39,800 Speaker 1: income you have to get a bit creative. But it 194 00:10:39,840 --> 00:10:42,240 Speaker 1: sounds like you're not saying dump it all together. You 195 00:10:42,280 --> 00:10:44,880 Speaker 1: can still find yield, you can still find opportunity. What 196 00:10:44,960 --> 00:10:47,920 Speaker 1: does this mean though, on the equity side of the equation, 197 00:10:47,960 --> 00:10:50,120 Speaker 1: Like you said, one of the factors that is not 198 00:10:50,280 --> 00:10:54,439 Speaker 1: likely to occur in is the FED raising interest rates. 199 00:10:54,760 --> 00:10:57,760 Speaker 1: So does this mean that we can just continue to 200 00:10:57,840 --> 00:11:02,440 Speaker 1: see high equity value rations being sustainable and the stock 201 00:11:02,480 --> 00:11:05,920 Speaker 1: market just continue to rise even after what was a 202 00:11:05,960 --> 00:11:09,679 Speaker 1: phenomenal year for financial markets and what was a not 203 00:11:09,840 --> 00:11:15,160 Speaker 1: so phenomenal year in real life. Quite honestly, yeah, the 204 00:11:15,200 --> 00:11:17,920 Speaker 1: answer to your question, there is I think the valuations 205 00:11:17,960 --> 00:11:20,480 Speaker 1: can remain around these elevated levels, and it is a 206 00:11:20,480 --> 00:11:22,640 Speaker 1: bit unnerving look at the equity markets and seeing it 207 00:11:22,720 --> 00:11:27,199 Speaker 1: twenty times twenty one two times multiple that's associated with it, 208 00:11:27,280 --> 00:11:31,000 Speaker 1: But this is the reality just given how low interest 209 00:11:31,120 --> 00:11:33,440 Speaker 1: rates are, and like anything else, when you have a 210 00:11:33,480 --> 00:11:37,000 Speaker 1: certain market condition, it takes something to dislodge it. So 211 00:11:37,120 --> 00:11:40,520 Speaker 1: for us to see materially lower multiples and for them 212 00:11:40,520 --> 00:11:44,280 Speaker 1: to become unsustainable, you really need to have either a 213 00:11:44,360 --> 00:11:48,679 Speaker 1: growth event or a rates higher event happening. And our 214 00:11:48,880 --> 00:11:52,520 Speaker 1: base baseline outlook is the GDP is going to rebound 215 00:11:52,559 --> 00:11:55,120 Speaker 1: next year in the US to three point three percent um, 216 00:11:55,200 --> 00:11:58,080 Speaker 1: so that's a strong rebound, and then we're not going 217 00:11:58,120 --> 00:12:01,200 Speaker 1: to see maturely higher interest rates, maybe a backup of 218 00:12:01,280 --> 00:12:03,880 Speaker 1: forty basis points or so on a ten year treasury, 219 00:12:03,920 --> 00:12:07,800 Speaker 1: but that's just not enough to impact the multiple because 220 00:12:07,920 --> 00:12:10,640 Speaker 1: the other thing that really controls the multiple is what 221 00:12:10,800 --> 00:12:13,480 Speaker 1: is the earnings growth going to be? And we're looking 222 00:12:13,520 --> 00:12:17,880 Speaker 1: for high double digit earnings growth in one so even 223 00:12:17,880 --> 00:12:20,040 Speaker 1: if we get a little bit of multiple compression, I 224 00:12:20,040 --> 00:12:23,880 Speaker 1: think some of the earnings boost potentially definitely offsets that 225 00:12:24,240 --> 00:12:27,640 Speaker 1: and not to mention revisions. You know, a lot of 226 00:12:27,679 --> 00:12:32,280 Speaker 1: the bottoms up analyst estimates are still likely fairly conservative, 227 00:12:32,320 --> 00:12:34,400 Speaker 1: and we can see those get revised higher in twenty 228 00:12:34,440 --> 00:12:36,640 Speaker 1: one and a stay. Let's circle back to the idea 229 00:12:36,679 --> 00:12:40,000 Speaker 1: of healthcare innovation, because this past year we have seen 230 00:12:40,120 --> 00:12:44,920 Speaker 1: pretty magnificent rallies in many biotech stocks, also some digital 231 00:12:44,920 --> 00:12:48,480 Speaker 1: healthcare stocks, and thinking the likes of TELDOC, considering the 232 00:12:48,559 --> 00:12:51,320 Speaker 1: runs that we've already seen this year, where are you 233 00:12:51,320 --> 00:12:55,199 Speaker 1: guys looking within the space, within the idea the trend, 234 00:12:55,280 --> 00:12:59,280 Speaker 1: the mega trend of healthcare innovation, UH to kind of 235 00:13:00,600 --> 00:13:04,520 Speaker 1: move that and direct that into investment. Yeah, it has 236 00:13:04,559 --> 00:13:07,920 Speaker 1: been a stellar year for of course all things healthcare, 237 00:13:07,960 --> 00:13:10,920 Speaker 1: but especially the telemedicine side of it. And you've seen 238 00:13:11,400 --> 00:13:14,240 Speaker 1: some of those stocks rally just as much as some 239 00:13:14,320 --> 00:13:17,400 Speaker 1: of the videoconferencing stocks and some of the electric vehicle stocks. 240 00:13:17,400 --> 00:13:20,440 Speaker 1: So it's been a significant rally. UM. I think we 241 00:13:20,559 --> 00:13:22,720 Speaker 1: might give some of that back next year as the 242 00:13:22,760 --> 00:13:25,520 Speaker 1: world ventures out of this digital lockdown and goes to 243 00:13:25,720 --> 00:13:28,600 Speaker 1: UH doing more and more business in person. So I'm 244 00:13:28,600 --> 00:13:31,480 Speaker 1: a little bit cautious on that space, but where we 245 00:13:31,559 --> 00:13:36,840 Speaker 1: are looking is in the biotech and pharma breakthrough innovation, 246 00:13:37,559 --> 00:13:42,080 Speaker 1: and obviously the coronavirus pandemic has been just a devastating 247 00:13:42,400 --> 00:13:45,400 Speaker 1: um development in terms of mortality outcomes over one point 248 00:13:45,440 --> 00:13:48,720 Speaker 1: six million deaths and that is just devastating. But there's 249 00:13:48,920 --> 00:13:54,679 Speaker 1: other unmet significant issues, and top of mind there is cancer. 250 00:13:55,040 --> 00:13:58,520 Speaker 1: If you can think about cancer, over nine million deaths 251 00:13:58,559 --> 00:14:02,000 Speaker 1: is where we've seen due to cancer. So it's significant 252 00:14:02,080 --> 00:14:05,080 Speaker 1: unmet need and a lot of healthcare R and D 253 00:14:05,080 --> 00:14:09,920 Speaker 1: dollars are looking for breakthrough solutions for cancer therapy. So 254 00:14:10,320 --> 00:14:12,880 Speaker 1: as we think about investing for the next five years, 255 00:14:13,080 --> 00:14:14,960 Speaker 1: I think a lot of that R and D effort 256 00:14:15,040 --> 00:14:17,280 Speaker 1: that's going into the space right now is likely to 257 00:14:17,360 --> 00:14:20,640 Speaker 1: pay off. And so the rough estimates is that based 258 00:14:20,680 --> 00:14:22,600 Speaker 1: on the R and D that's in the space right now, 259 00:14:23,280 --> 00:14:27,440 Speaker 1: we could see the revenues of the NASDAC Biotech Index 260 00:14:27,560 --> 00:14:31,320 Speaker 1: almost double in the next four years. And so from 261 00:14:31,360 --> 00:14:36,280 Speaker 1: the aggregate standpoint, that's what makes investing in biotech so compelling, 262 00:14:36,400 --> 00:14:38,320 Speaker 1: is because all else equel, even if you don't have 263 00:14:38,400 --> 00:14:42,160 Speaker 1: multiple expansions, but the revenues of the sector double, you 264 00:14:42,200 --> 00:14:46,080 Speaker 1: should see stock prices reflect that quite a bit. So 265 00:14:46,160 --> 00:14:49,680 Speaker 1: that's the reason Um Sarah, why the last five years 266 00:14:49,720 --> 00:14:52,360 Speaker 1: have not actually been particularly good for biotech because we've 267 00:14:52,440 --> 00:14:55,520 Speaker 1: not seen the revenue or in his growth come through. 268 00:14:55,920 --> 00:14:59,480 Speaker 1: But the next five years should mean twenty seven percent 269 00:14:59,600 --> 00:15:02,360 Speaker 1: on a earnings growth, and so that's why I think 270 00:15:02,360 --> 00:15:05,400 Speaker 1: you're seeing this breakout in biotech out of this long 271 00:15:05,480 --> 00:15:08,640 Speaker 1: five year range. So that's on the macro level and 272 00:15:08,720 --> 00:15:11,640 Speaker 1: on the micro level. Again, within health care innovation, we're 273 00:15:11,760 --> 00:15:16,040 Speaker 1: very excited about the potential for personalized cancer treatments. And 274 00:15:16,400 --> 00:15:20,040 Speaker 1: it's interesting because the companies that are the forefront of vaccines, 275 00:15:20,080 --> 00:15:22,960 Speaker 1: like Maderna and Beyond Tech, they're now known as the 276 00:15:23,000 --> 00:15:26,720 Speaker 1: vaccine companies, But the reality is the research, the m 277 00:15:26,800 --> 00:15:30,880 Speaker 1: rning research they were conducting, they're investigating its potential to 278 00:15:31,000 --> 00:15:34,000 Speaker 1: treat cancer. And I think the breakthroughs that we meet 279 00:15:34,080 --> 00:15:38,240 Speaker 1: on the vaccine front could actually lead to potentially approve 280 00:15:38,400 --> 00:15:41,400 Speaker 1: personalized cancer vaccines. Yeah, I want to get back to 281 00:15:41,480 --> 00:15:44,440 Speaker 1: that green energy theme in a station. I know it's 282 00:15:44,480 --> 00:15:47,400 Speaker 1: a theme that you've you've done a lot of work on. Sorry, 283 00:15:47,400 --> 00:15:49,680 Speaker 1: this is probably a good time to remind people that 284 00:15:49,760 --> 00:15:53,280 Speaker 1: I am not actually Joe Biden's nomineed to had the 285 00:15:53,320 --> 00:15:55,680 Speaker 1: e P a even though we share the same name, 286 00:15:56,040 --> 00:15:58,320 Speaker 1: you really need that disclaimer in there. You needed disclaimer 287 00:15:58,360 --> 00:16:00,960 Speaker 1: about leverage and needed a lamor about the fact that 288 00:16:01,000 --> 00:16:03,600 Speaker 1: you are not going to run the If you came 289 00:16:03,640 --> 00:16:06,680 Speaker 1: to this podcast thinking that was your guy, that you know, 290 00:16:06,720 --> 00:16:08,960 Speaker 1: you can get some insights. It's it's not me. I'm 291 00:16:09,000 --> 00:16:10,800 Speaker 1: a fan of the environment. I will say, I'm not 292 00:16:10,840 --> 00:16:13,560 Speaker 1: just not in charge of it. I'm a a tree 293 00:16:13,640 --> 00:16:16,080 Speaker 1: hugger at heart, which I might be dating myself with 294 00:16:16,120 --> 00:16:19,600 Speaker 1: that term. That's that's uh, it might sound it's a 295 00:16:19,720 --> 00:16:21,800 Speaker 1: kind of weird to your generation, but that's that's what 296 00:16:21,840 --> 00:16:25,080 Speaker 1: we called environmentalists back in my day. But but at 297 00:16:25,080 --> 00:16:26,800 Speaker 1: the station, I have a lot of questions. This is 298 00:16:26,840 --> 00:16:28,840 Speaker 1: gonna be sort of a set up for my famous 299 00:16:28,840 --> 00:16:31,440 Speaker 1: twelve part questions. So I hope you're you're ready here. 300 00:16:31,920 --> 00:16:36,400 Speaker 1: But I think it's a fascinating theme, super important team, 301 00:16:36,440 --> 00:16:38,600 Speaker 1: not just for the market but just for the planet 302 00:16:38,680 --> 00:16:42,760 Speaker 1: in general. Um, but a few questions I have if 303 00:16:42,800 --> 00:16:45,200 Speaker 1: you can kind of just walk us through how you 304 00:16:45,320 --> 00:16:48,520 Speaker 1: were thinking about green energy and electric vehicles in the 305 00:16:48,520 --> 00:16:54,440 Speaker 1: whole space going forward. Secondly, how important is this Georgia 306 00:16:54,600 --> 00:16:59,320 Speaker 1: Senate runoff election in January when it comes to that theme. Obviously, 307 00:16:59,400 --> 00:17:03,480 Speaker 1: Joe Biden needs that democratic support in the Senate to 308 00:17:03,640 --> 00:17:08,080 Speaker 1: enact a very aggressive green energy agenda. I'm not sure 309 00:17:08,119 --> 00:17:10,680 Speaker 1: how much that matters over the long term to this theme. 310 00:17:11,560 --> 00:17:14,160 Speaker 1: And third, and finally, I wonder how much interest there 311 00:17:14,320 --> 00:17:16,560 Speaker 1: is in this type of investing just from sort of 312 00:17:16,600 --> 00:17:20,359 Speaker 1: the E. S G perspective, whether you know people like 313 00:17:20,400 --> 00:17:22,840 Speaker 1: me who actually do give a darn about the environment, 314 00:17:22,840 --> 00:17:28,879 Speaker 1: whether they're willing to say except maybe you know less 315 00:17:28,920 --> 00:17:32,119 Speaker 1: than market returns in exchange for a clear conscious I 316 00:17:32,240 --> 00:17:34,040 Speaker 1: just kind of if you could wrap all those twenty 317 00:17:34,080 --> 00:17:36,919 Speaker 1: five questions in one answer, I'd I'd be curious. We 318 00:17:36,960 --> 00:17:42,240 Speaker 1: have the same You double your twelve. I think it 319 00:17:42,359 --> 00:17:46,400 Speaker 1: was three, So one by one I'm losing my I'm 320 00:17:46,440 --> 00:17:50,000 Speaker 1: losing my touch, alright, three, so you know my great 321 00:17:50,080 --> 00:17:52,480 Speaker 1: questions and starting with your first one is what is 322 00:17:52,520 --> 00:17:55,320 Speaker 1: the overarching thesis for investing in clean energy? And wise 323 00:17:55,359 --> 00:17:58,080 Speaker 1: and gave so much traction this year, you know you're right. 324 00:17:58,119 --> 00:18:00,200 Speaker 1: This is not a new theme that just still of 325 00:18:00,240 --> 00:18:02,240 Speaker 1: a sudden emerged this year. This has been in the 326 00:18:02,280 --> 00:18:06,440 Speaker 1: making for years, if not decades. But what's critically different 327 00:18:06,520 --> 00:18:09,800 Speaker 1: about it this year is that you have three events 328 00:18:09,840 --> 00:18:12,600 Speaker 1: that are coming together to make this a very compelling theme. 329 00:18:12,880 --> 00:18:15,720 Speaker 1: So first of all, you've got this immense government support, 330 00:18:15,840 --> 00:18:18,200 Speaker 1: especially coming out of the COVID pandemic. And I'm not 331 00:18:18,240 --> 00:18:21,400 Speaker 1: talking about the United States necessarily. I'm talking about Europe 332 00:18:21,680 --> 00:18:24,639 Speaker 1: that has approved more than six hundred billion dollars in 333 00:18:24,720 --> 00:18:28,119 Speaker 1: green stimulus for the next several years. I'm talking about China, 334 00:18:28,520 --> 00:18:33,600 Speaker 1: who who committed to being carbon neutral by twenties sixty 335 00:18:33,680 --> 00:18:36,600 Speaker 1: and to have their admissions peak by twenty thirty. So 336 00:18:36,640 --> 00:18:39,000 Speaker 1: here you're talking about the largest CEO two women in 337 00:18:39,000 --> 00:18:42,480 Speaker 1: the world taking this huge step forward. I'm talking about 338 00:18:42,480 --> 00:18:45,320 Speaker 1: the United States, not necessarily from the perspective of the 339 00:18:45,359 --> 00:18:50,320 Speaker 1: green infrastructure stimulus, but the states themselves. Different states have 340 00:18:50,480 --> 00:18:55,520 Speaker 1: renewable policy standards and targets and those are already in play. 341 00:18:55,560 --> 00:18:59,639 Speaker 1: So you've got this global government push for clean energy, 342 00:19:00,160 --> 00:19:05,359 Speaker 1: and this is combining forces with the cost of renewables 343 00:19:05,359 --> 00:19:07,880 Speaker 1: that have just dropped significantly in the last ten years. 344 00:19:08,200 --> 00:19:12,080 Speaker 1: And then the third point that's really adding fuel to 345 00:19:12,119 --> 00:19:14,919 Speaker 1: the fire here for clean energy is the corporate interest. 346 00:19:15,520 --> 00:19:18,520 Speaker 1: If we look at corporations around the world, a quarter 347 00:19:18,800 --> 00:19:21,600 Speaker 1: of the global fortunate five hundred companies have said they're 348 00:19:21,600 --> 00:19:24,520 Speaker 1: going to go either carbon neutral by twenty or they're 349 00:19:24,520 --> 00:19:28,159 Speaker 1: gonna have hundred percent renewable energy commitment. So you know, 350 00:19:28,359 --> 00:19:31,560 Speaker 1: other metrics suggest that two hundred forty two companies worldwide 351 00:19:31,640 --> 00:19:35,720 Speaker 1: have a hundred percent renewable energy target. So you look 352 00:19:35,760 --> 00:19:40,600 Speaker 1: at those three forces, and we've just not seen that confluence, um, 353 00:19:40,640 --> 00:19:42,200 Speaker 1: you know, in the last ten or twenty years, but 354 00:19:42,240 --> 00:19:44,720 Speaker 1: we're seeing in today. And I think that's what's finally 355 00:19:44,840 --> 00:19:49,720 Speaker 1: marking as the pedal point for clean energy. So that's 356 00:19:49,760 --> 00:19:51,959 Speaker 1: the answer to your first question, and that's that's the 357 00:19:51,960 --> 00:19:56,080 Speaker 1: thesis itself. Now the second part of your point question, 358 00:19:56,840 --> 00:20:00,920 Speaker 1: you know, what about the Democratic se that are up 359 00:20:00,920 --> 00:20:04,200 Speaker 1: for grabs, what if they are What if the Georgia 360 00:20:04,560 --> 00:20:07,240 Speaker 1: racist do not end up going the Democratic way? Does 361 00:20:07,320 --> 00:20:10,160 Speaker 1: this sort of put a hold on the Biden green 362 00:20:10,240 --> 00:20:13,480 Speaker 1: energy agenda? And I would say no, not necessarily and 363 00:20:13,520 --> 00:20:15,960 Speaker 1: perhaps not at all, because one of the things that 364 00:20:15,960 --> 00:20:18,520 Speaker 1: the next president President Biden can do is he can 365 00:20:18,760 --> 00:20:21,200 Speaker 1: and he has stated that he wants to re enter 366 00:20:21,240 --> 00:20:23,520 Speaker 1: the Parish Climate a Court, so that's something that the 367 00:20:23,560 --> 00:20:27,320 Speaker 1: executive can do. Um. The second point is, even if 368 00:20:27,359 --> 00:20:31,280 Speaker 1: this is not a blue wave, it's not a democratic majority. 369 00:20:31,359 --> 00:20:35,280 Speaker 1: It is about the economics, the economic fundamentals of clean energy. 370 00:20:35,760 --> 00:20:39,200 Speaker 1: And so whether it's companies like Hours, whether it's companies 371 00:20:39,240 --> 00:20:42,600 Speaker 1: like Google and Microsoft in Facebook. Part of the reason 372 00:20:42,720 --> 00:20:46,879 Speaker 1: why companies are adopting clean energy, A, it's beneficial for 373 00:20:46,920 --> 00:20:50,800 Speaker 1: the environment, but b uh, it actually costs less, so 374 00:20:51,080 --> 00:20:54,920 Speaker 1: I think infrastructure stimulus or not. This is not why 375 00:20:55,040 --> 00:20:58,159 Speaker 1: those stocks are running higher. They're moving higher because the 376 00:20:58,160 --> 00:21:00,359 Speaker 1: earnings growth is there, and we have you have a 377 00:21:00,440 --> 00:21:04,840 Speaker 1: pretty good visibility into that earnings growth, so you know, 378 00:21:04,880 --> 00:21:08,360 Speaker 1: and this is gets to your third part of the question. 379 00:21:08,720 --> 00:21:13,840 Speaker 1: Is she's good. She got all three parts? Yea, she 380 00:21:13,920 --> 00:21:16,160 Speaker 1: needs the patterns off on the back. Actually, I'm lucky 381 00:21:16,200 --> 00:21:19,520 Speaker 1: ifought like half of the questions here. That's very good. 382 00:21:19,560 --> 00:21:39,480 Speaker 1: Those are good questions. You know. Part three is also 383 00:21:39,560 --> 00:21:42,760 Speaker 1: important because you look at the valuations of these companies, 384 00:21:42,840 --> 00:21:45,600 Speaker 1: at the clean energy companies, they have literally doubled since 385 00:21:45,640 --> 00:21:47,960 Speaker 1: the beginning of the year. And you look at the 386 00:21:48,040 --> 00:21:52,800 Speaker 1: inflows into some of those thematically energy ts UM they 387 00:21:54,160 --> 00:21:57,040 Speaker 1: rose anywhere between three times and five times in terms 388 00:21:57,080 --> 00:21:59,960 Speaker 1: of their assets under management. So there's been a signific 389 00:22:00,040 --> 00:22:03,160 Speaker 1: thickned interest going into the space. And now you might 390 00:22:03,200 --> 00:22:06,320 Speaker 1: be thinking, well, that's a lot of money chasing this, 391 00:22:06,560 --> 00:22:09,800 Speaker 1: you know, very very hot theme. Um, maybe the valuations 392 00:22:09,760 --> 00:22:12,359 Speaker 1: is stretched. Well, maybe they are if you look at 393 00:22:12,400 --> 00:22:15,159 Speaker 1: the pe only, But if you look at the multiples 394 00:22:15,160 --> 00:22:17,760 Speaker 1: and adjust that for growth, and some of these companies 395 00:22:17,800 --> 00:22:21,720 Speaker 1: are growing at um, that's a very different story. Some 396 00:22:21,800 --> 00:22:24,840 Speaker 1: of those companies are treating on the PEG ratio, right 397 00:22:24,920 --> 00:22:28,600 Speaker 1: in line with the S and P and clearly offering 398 00:22:28,920 --> 00:22:33,480 Speaker 1: a much much more exciting growth trajectory. So how do 399 00:22:33,520 --> 00:22:35,600 Speaker 1: you actually put this to work? Of course, when a 400 00:22:35,600 --> 00:22:39,080 Speaker 1: lot of people think of how to invest somehow in 401 00:22:39,160 --> 00:22:42,080 Speaker 1: clean energy, their minds might go to that electric vehicle 402 00:22:42,119 --> 00:22:45,440 Speaker 1: stock that may not be named. But at the same time, 403 00:22:45,440 --> 00:22:48,399 Speaker 1: of course, there are many other ways to invest in 404 00:22:48,440 --> 00:22:51,399 Speaker 1: the clean energy space. Can you give us a sense 405 00:22:51,560 --> 00:22:55,520 Speaker 1: of either some industry level derivative place or just other 406 00:22:55,560 --> 00:23:00,280 Speaker 1: ways within the industry that people can get involved away 407 00:23:00,359 --> 00:23:03,440 Speaker 1: from the electric vehicle space. Yeah, sure, so. I think 408 00:23:03,440 --> 00:23:06,800 Speaker 1: it's a twofold discussion both on electric vehicles and renewables, 409 00:23:06,880 --> 00:23:10,159 Speaker 1: and we'll start with electric vehicles. We don't necessarily think 410 00:23:10,320 --> 00:23:13,480 Speaker 1: that the automakers themselves are going to be the most 411 00:23:13,480 --> 00:23:17,359 Speaker 1: compelling um from the investment returns going forward. But if 412 00:23:17,400 --> 00:23:19,359 Speaker 1: you look at the supply chain, there's a lot of 413 00:23:19,400 --> 00:23:23,560 Speaker 1: moving parts. For example, there's the battery manufacturers and you 414 00:23:23,640 --> 00:23:28,480 Speaker 1: have the Korean, the Japanese, the Chinese battery manufacturers. There's 415 00:23:28,520 --> 00:23:32,520 Speaker 1: significantly ramping up their battery manufacturing capacity and as you 416 00:23:32,560 --> 00:23:35,679 Speaker 1: can tell, the demand for it is just heating up. Um. 417 00:23:35,720 --> 00:23:39,680 Speaker 1: You can think about semiconductor stacks that go into the 418 00:23:39,720 --> 00:23:45,040 Speaker 1: electric vehicles, and you actually need five times the semi 419 00:23:45,080 --> 00:23:47,720 Speaker 1: conductor content the power semic conductor content for N a 420 00:23:47,800 --> 00:23:51,400 Speaker 1: V relative to a traditional car. So you have companies 421 00:23:51,440 --> 00:23:54,159 Speaker 1: in the United States but also Germany that are capitalized 422 00:23:54,200 --> 00:23:58,439 Speaker 1: on that. You've got this huge potentially recycling business that 423 00:23:58,480 --> 00:24:02,119 Speaker 1: we've talked very little about, all this lithium battery technology 424 00:24:02,160 --> 00:24:04,119 Speaker 1: that's going to proliferate, all of that is going to 425 00:24:04,240 --> 00:24:06,840 Speaker 1: need to be recycled. So we're looking for some of 426 00:24:06,880 --> 00:24:12,600 Speaker 1: those solutions. And so this brings me to clean energy. 427 00:24:12,600 --> 00:24:15,560 Speaker 1: You know, historically we could have looked at the solar panels, 428 00:24:15,680 --> 00:24:18,760 Speaker 1: but that technology has frankly been commoditized and that and 429 00:24:18,800 --> 00:24:22,119 Speaker 1: I don't think that's the biggest opportunity for return generation. 430 00:24:22,400 --> 00:24:27,280 Speaker 1: But once again, if you look at the power optimizer technology, uh, 431 00:24:27,320 --> 00:24:31,480 Speaker 1: that makes the solar panel work more efficient and makes 432 00:24:31,680 --> 00:24:34,560 Speaker 1: that conversion from the direct sunlight to the alternating curred 433 00:24:34,600 --> 00:24:38,200 Speaker 1: more efficient, those companies are experienced a significant earnings growth. 434 00:24:38,600 --> 00:24:41,399 Speaker 1: If you look at residential installers, I would point this 435 00:24:41,480 --> 00:24:45,200 Speaker 1: out as the last area that we quite like. The 436 00:24:45,400 --> 00:24:48,240 Speaker 1: residential installations for the next several years, You're gonna grow 437 00:24:48,280 --> 00:24:51,440 Speaker 1: at twelve percent, and this is outpacing the commercial that 438 00:24:51,520 --> 00:24:53,879 Speaker 1: will be growing at six percent. And this is outpacing 439 00:24:54,000 --> 00:24:56,960 Speaker 1: utility scale that is actually going to decline by four 440 00:24:57,000 --> 00:25:00,280 Speaker 1: percent over the next few years. So this residential old 441 00:25:00,280 --> 00:25:04,200 Speaker 1: solar is a big sweet spot in renewable energy right now. 442 00:25:04,400 --> 00:25:08,240 Speaker 1: So residential installers and contractors that I tied to that 443 00:25:08,280 --> 00:25:12,000 Speaker 1: should really do quite well, very well. Anastasia. I know 444 00:25:12,080 --> 00:25:16,480 Speaker 1: one of your themes for next year is real assets, um, 445 00:25:16,520 --> 00:25:18,640 Speaker 1: but I think it's time for us to move on 446 00:25:18,680 --> 00:25:22,959 Speaker 1: to crazy assets. Stand clear of the craziest things we 447 00:25:23,040 --> 00:25:26,360 Speaker 1: saw in markets this week. I will tell you my 448 00:25:26,600 --> 00:25:29,320 Speaker 1: craziest thing of the week actually is a real hard asset, 449 00:25:29,600 --> 00:25:32,800 Speaker 1: probably not the kind you're advising clients to buy. Anastasia, 450 00:25:32,840 --> 00:25:36,680 Speaker 1: but still a real asset nonetheless, So uh, why don't 451 00:25:36,680 --> 00:25:38,960 Speaker 1: I start with I'll start with mine then, and Sarah, 452 00:25:39,280 --> 00:25:41,040 Speaker 1: as I know you like to play, this allows us 453 00:25:41,080 --> 00:25:43,400 Speaker 1: to play some prices right as well, my favorite game, 454 00:25:43,520 --> 00:25:46,880 Speaker 1: especially heading into the holidays. Mic okay, and this is yeah, 455 00:25:47,000 --> 00:25:49,840 Speaker 1: happy holidays, toller listeners. I almost baham mug, I almost 456 00:25:49,840 --> 00:25:54,560 Speaker 1: forgot about Uh. This was sent to me courtesy of 457 00:25:54,720 --> 00:25:57,200 Speaker 1: a listener in New Zealand, which a I think is 458 00:25:57,200 --> 00:25:59,760 Speaker 1: pretty cool that we have listeners in New Zealand. His 459 00:25:59,840 --> 00:26:05,080 Speaker 1: name in his Jeff Billbro and he's pointing out a 460 00:26:05,119 --> 00:26:09,920 Speaker 1: couple of purchases of Pokemon cards again in a stage. 461 00:26:09,960 --> 00:26:12,040 Speaker 1: I don't know what sort of allocation you you tell 462 00:26:12,080 --> 00:26:15,520 Speaker 1: clients to have for Pokemon cards, but you might reconsider 463 00:26:15,560 --> 00:26:20,040 Speaker 1: after you hear uh what he sold for, So Sarah, 464 00:26:20,040 --> 00:26:22,800 Speaker 1: I don't. I have no idea what Pokemon is. This 465 00:26:22,880 --> 00:26:25,840 Speaker 1: was way after my time. Look, I'll say I was 466 00:26:25,880 --> 00:26:30,439 Speaker 1: a big avid Pokemon girls. Alongside my siblings. We have 467 00:26:30,640 --> 00:26:34,960 Speaker 1: two full binders of Pokemon cards. They've they've been in 468 00:26:35,000 --> 00:26:36,480 Speaker 1: storage for quite a while. I don't know if we 469 00:26:36,520 --> 00:26:40,560 Speaker 1: have any that are worth anything special, But next time 470 00:26:40,600 --> 00:26:43,159 Speaker 1: I'm down in Florida with the family. You know, I'm 471 00:26:43,160 --> 00:26:44,560 Speaker 1: going to have to check it out because they were 472 00:26:44,560 --> 00:26:47,000 Speaker 1: actually lost for a while and we thought someone had 473 00:26:47,040 --> 00:26:50,639 Speaker 1: stolen them. Uh, and then may reappeared. So the saga 474 00:26:50,720 --> 00:26:52,720 Speaker 1: of the Pokemon cards, I might offer to buy the 475 00:26:52,720 --> 00:26:57,199 Speaker 1: whole binder after reading this story, But okay, I don't know. 476 00:26:57,320 --> 00:27:04,000 Speaker 1: I don't know what sharaz Ard is. You know, Resard? Okay, 477 00:27:04,040 --> 00:27:08,960 Speaker 1: a Sharizard card from the first deition edition Sharizard card. 478 00:27:08,960 --> 00:27:11,760 Speaker 1: I don't know if that matters. From the nine nine 479 00:27:11,920 --> 00:27:16,600 Speaker 1: Pokemon set. One sold a couple of months ago or 480 00:27:16,600 --> 00:27:19,160 Speaker 1: a couple of weeks ago, and then another just sold. 481 00:27:19,440 --> 00:27:21,800 Speaker 1: Prices right on on either one. How much would you 482 00:27:21,840 --> 00:27:27,320 Speaker 1: pay for a first edition nine Pokemon card of Shahizard 483 00:27:27,400 --> 00:27:32,160 Speaker 1: or however you say it, I'm gonna go. I could 484 00:27:32,200 --> 00:27:36,560 Speaker 1: be so off here. I'll go with twelve thousand. Okay, 485 00:27:36,600 --> 00:27:39,439 Speaker 1: I'm gonna keep a poker face. Anastasia, you're on the 486 00:27:39,480 --> 00:27:42,680 Speaker 1: spot there. What is your bid for for this ridiculous thing. 487 00:27:43,119 --> 00:27:45,760 Speaker 1: I am so gonna defer to Sarah on this, so 488 00:27:45,800 --> 00:27:48,560 Speaker 1: I'm just gonna go a little bit higher fifteen thousand. 489 00:27:48,680 --> 00:27:53,720 Speaker 1: But absolutely a good trend has been an outbid stared 490 00:27:53,760 --> 00:27:56,960 Speaker 1: by like a dollar over the last few Okay, the 491 00:27:57,000 --> 00:27:59,480 Speaker 1: first one sold for two hundred and twenty six thousand 492 00:28:00,080 --> 00:28:04,280 Speaker 1: U S. Dollars. Oh my god, three D sixty nine thousand. 493 00:28:04,480 --> 00:28:06,800 Speaker 1: I should have just spought that binder of your cards off. 494 00:28:07,760 --> 00:28:09,720 Speaker 1: I think supposedly the issue is, I don't think we 495 00:28:09,760 --> 00:28:12,520 Speaker 1: have any first edition cards, the very rare. I guess 496 00:28:12,640 --> 00:28:15,520 Speaker 1: I don't. I don't know that much. But you know, 497 00:28:15,680 --> 00:28:17,960 Speaker 1: next time I'm down visiting the family, I'm going to 498 00:28:18,080 --> 00:28:20,119 Speaker 1: dig up that binder and do my due diligence and 499 00:28:20,160 --> 00:28:23,320 Speaker 1: make sure that's the case. After hearing those numbers, I 500 00:28:23,400 --> 00:28:25,359 Speaker 1: want a commission on what if if you have a 501 00:28:25,400 --> 00:28:28,240 Speaker 1: shower's art there? All right? You got it that. We'll 502 00:28:28,240 --> 00:28:29,960 Speaker 1: have to have an agreement. Though I assume this is 503 00:28:30,000 --> 00:28:33,480 Speaker 1: not the type of real assets you're you're talking about. No, 504 00:28:33,640 --> 00:28:37,280 Speaker 1: not exactly all those It sounds pretty good. Mike's just 505 00:28:37,320 --> 00:28:39,280 Speaker 1: sitting there thinking, why do I need an apartment when 506 00:28:39,280 --> 00:28:44,920 Speaker 1: I can buy a first edition charge. That's just why 507 00:28:44,960 --> 00:28:47,400 Speaker 1: I'm a border. By the way, I don't throw anything out. 508 00:28:48,080 --> 00:28:50,760 Speaker 1: You never know, Sarah, this is why why I heard everything. 509 00:28:52,720 --> 00:28:54,840 Speaker 1: Let's get the focus back on the important stuff, the 510 00:28:54,840 --> 00:28:57,760 Speaker 1: crazy stuff here, Sarah, what's what's your craziest thing of 511 00:28:57,800 --> 00:29:02,120 Speaker 1: the week. All right, so i'll bring it back. Actually 512 00:29:02,120 --> 00:29:05,880 Speaker 1: we'll keep it close to markets this week. Something that 513 00:29:06,000 --> 00:29:08,280 Speaker 1: was pretty crazy, and it has to do if that 514 00:29:08,360 --> 00:29:11,360 Speaker 1: electric vehicle stock. Of course, it was just added to 515 00:29:11,400 --> 00:29:14,920 Speaker 1: the SMP five hundred. The rebalancing was done on Friday, 516 00:29:14,960 --> 00:29:18,400 Speaker 1: and I got this data from Nasdaq which I thought 517 00:29:18,560 --> 00:29:21,920 Speaker 1: was just amazing. Friday. By the end of the day, 518 00:29:21,960 --> 00:29:24,880 Speaker 1: if he took every talk stock into account, a record 519 00:29:24,960 --> 00:29:28,680 Speaker 1: one point seven billion shares traded in their closing auction 520 00:29:28,720 --> 00:29:30,680 Speaker 1: and that was worth about a hundred fifty point eight 521 00:29:30,720 --> 00:29:33,840 Speaker 1: billion dollars. So with this rebalance that we saw on 522 00:29:33,920 --> 00:29:37,360 Speaker 1: Friday last Friday, yes, it was expected to be a 523 00:29:37,400 --> 00:29:41,280 Speaker 1: big day, but a record amount of trading volume in 524 00:29:41,320 --> 00:29:43,880 Speaker 1: the closing auction, which which was pretty amazing. And that 525 00:29:44,000 --> 00:29:46,120 Speaker 1: was all Tesla stock, or was at every stock in 526 00:29:46,160 --> 00:29:49,320 Speaker 1: the in every stock, every stock, right right right, because 527 00:29:49,360 --> 00:29:51,920 Speaker 1: eight nine billion in a given days a pretty strong day. 528 00:29:51,960 --> 00:29:54,640 Speaker 1: That's amazing. All that in just the closing auction, right, 529 00:29:54,720 --> 00:29:57,760 Speaker 1: just just the closing auction is amazing. Well, at least 530 00:29:57,760 --> 00:30:00,920 Speaker 1: we can stop thinking about what's gonna happen. Once Tesla 531 00:30:01,000 --> 00:30:03,800 Speaker 1: joints the index, we now know and we can I'm 532 00:30:03,800 --> 00:30:07,360 Speaker 1: personally glad, I'll move on with our lives. But at 533 00:30:07,360 --> 00:30:09,240 Speaker 1: a stagia, how about you? Have you seen anything crazy 534 00:30:09,280 --> 00:30:12,520 Speaker 1: in the past week or so? You know, I don't 535 00:30:12,560 --> 00:30:15,400 Speaker 1: know if I've seen anything crazy, except for, of course, 536 00:30:15,480 --> 00:30:18,560 Speaker 1: the mutation of the virus that we had to contend 537 00:30:18,600 --> 00:30:24,680 Speaker 1: with with last week. And maybe this is not really crazy, 538 00:30:24,800 --> 00:30:28,480 Speaker 1: but this is telling that there's a few big fears 539 00:30:28,560 --> 00:30:32,600 Speaker 1: out there. For one, and topping that list is exactly 540 00:30:32,600 --> 00:30:34,600 Speaker 1: that is, what if this virus mutates and what if 541 00:30:34,640 --> 00:30:37,560 Speaker 1: it slips past the vaccine? That is absolutely top of 542 00:30:37,560 --> 00:30:40,600 Speaker 1: mind for investors. And the second one is what if 543 00:30:40,720 --> 00:30:43,720 Speaker 1: we do have severe allergic reactions to the vaccines that 544 00:30:43,760 --> 00:30:47,640 Speaker 1: are out there. So, you know, typically it's some geopolitical 545 00:30:47,760 --> 00:30:51,360 Speaker 1: risk or essential banks or recession or something like that, 546 00:30:51,440 --> 00:30:53,920 Speaker 1: but it continues to be the virus and the healthcare 547 00:30:53,920 --> 00:30:57,520 Speaker 1: concerns that kind of dominate the risks. For one. Hopefully 548 00:30:57,600 --> 00:31:01,160 Speaker 1: twenty one will bring us all positive ge and something 549 00:31:01,240 --> 00:31:04,680 Speaker 1: better than what we all experienced this year. I gotta say, Sarah, 550 00:31:04,680 --> 00:31:06,440 Speaker 1: I was running out of things to worry about, But 551 00:31:06,480 --> 00:31:10,320 Speaker 1: now Anastosia has has reloaded me for the new year, 552 00:31:10,400 --> 00:31:12,840 Speaker 1: so I feel better now having a full plate of 553 00:31:12,880 --> 00:31:14,400 Speaker 1: things to worry about. It doesn't seem right if you 554 00:31:14,440 --> 00:31:18,920 Speaker 1: don't have something to worry how going to help Mike? Well, 555 00:31:19,320 --> 00:31:21,560 Speaker 1: if anyone else has something to add to Mike's list 556 00:31:21,560 --> 00:31:23,400 Speaker 1: of things to worry about. Remember, we do have our 557 00:31:23,520 --> 00:31:26,040 Speaker 1: very own podcast hotline, and you can give us a 558 00:31:26,080 --> 00:31:29,160 Speaker 1: call at six or six three two four three four 559 00:31:29,360 --> 00:31:32,719 Speaker 1: nine zero, Leave us a message, ask us a question, 560 00:31:32,800 --> 00:31:34,600 Speaker 1: let us know what crazy things you have seen in market. 561 00:31:34,720 --> 00:31:38,280 Speaker 1: Sing us a holiday song or Christmas carol, whatever you want, 562 00:31:38,320 --> 00:31:42,400 Speaker 1: and maybe we'll even play it on the show. Absolutely, 563 00:31:42,800 --> 00:31:46,440 Speaker 1: just no heavy breathing that always creeps me out, nothing 564 00:31:46,480 --> 00:31:49,160 Speaker 1: to creep Mike out, to be sure, But unfortunately we're 565 00:31:49,160 --> 00:31:51,640 Speaker 1: going to have to leave it there. Anastasia amarros So, 566 00:31:51,720 --> 00:31:54,400 Speaker 1: thank you so much for joining the show today. Thank you, Sarah, 567 00:31:54,400 --> 00:32:05,239 Speaker 1: thank you Mike, Thanks everybody. What goes up. We'll be 568 00:32:05,280 --> 00:32:08,240 Speaker 1: back next week. Until then, you can find us on 569 00:32:08,280 --> 00:32:11,360 Speaker 1: the Bloomberg Terminal website and app, or wherever you get 570 00:32:11,360 --> 00:32:14,160 Speaker 1: your podcasts. We'd love it if you took the time 571 00:32:14,200 --> 00:32:16,719 Speaker 1: to rate and review the show on Apple podcasts so 572 00:32:16,760 --> 00:32:19,280 Speaker 1: more listeners can find us, and you can find us 573 00:32:19,280 --> 00:32:22,920 Speaker 1: on Twitter, follow me at Sarah Plant, Sack, Mike is 574 00:32:22,920 --> 00:32:27,680 Speaker 1: that Reaganonymous, and you can also follow Bloomberg Podcasts at podcasts. 575 00:32:28,000 --> 00:32:30,360 Speaker 1: Also thank you to Charlie Pellett of Bloomberg Radio and 576 00:32:30,400 --> 00:32:33,120 Speaker 1: the voice of the New York City subway System. What 577 00:32:33,240 --> 00:32:35,760 Speaker 1: Goes Up is produced by Jordan Gospore. The head of 578 00:32:35,760 --> 00:32:39,240 Speaker 1: Bloomberg podcast is Francesco Levie. Thanks for listening, See you 579 00:32:39,320 --> 00:32:39,760 Speaker 1: next time.