WEBVTT - Single Best Idea  with Tom Keene: Nick Colas & Dennis Gartman

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, single best idea and

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<v Speaker 1>we were ripping up the script all morning here in

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<v Speaker 1>the new flow, just extraordinary here into Meta and Microsoft

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<v Speaker 1>this afternoon. Google last time I looked, was up eight

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<v Speaker 1>nine ten dollars as well as a lift three point

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<v Speaker 1>eight standard deviation move up on Google. But the new

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<v Speaker 1>slow is there. Nick Cholis was in today with Data

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<v Speaker 1>Trek Research Exquisite Research, thinking about the broader picture, but

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<v Speaker 1>bringing it down to Nick Colis granularity. Here he is

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<v Speaker 1>on the overweight of the hiss of the moment, I

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<v Speaker 1>should say, the overweight of the decade, the standard IMPORES

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<v Speaker 1>five hundred.

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<v Speaker 2>It is dramatic, and it's obviously we're talking about the

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<v Speaker 2>SP five hundred versus anything else, any other index anywhere

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<v Speaker 2>in the world MSCI, Europe, Japan, Emerging Markets, everything you.

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<v Speaker 2>Tech is a heavy weight in the US more than

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<v Speaker 2>anyplace else. And the bottom line is you have to

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<v Speaker 2>live with it. And there's a reason why these companies

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<v Speaker 2>have gotten so big. They are disruptive innovators at scale,

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<v Speaker 2>and they own most of the Internet, and it's really

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<v Speaker 2>hard to back away from that. Here in the US.

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<v Speaker 2>We talk about it a lot as a negative. When

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<v Speaker 2>I visit clients in Europe, everybody resolutely thinks it's a positive,

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<v Speaker 2>and they think, thank God for US equities, because if

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<v Speaker 2>there weren't for the spo FI one hundred, I'd be

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<v Speaker 2>stuck owning MSCI Europe earning five to eight percent instead

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<v Speaker 2>of owning the US which is compounding at thirteen. So

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<v Speaker 2>we think of it as a problem here. Nobody else

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<v Speaker 2>sins it is a problem.

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<v Speaker 1>We replay the morning program and for Global Wall Street,

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<v Speaker 1>the Nikolas interview was so deep, so thick, that I

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<v Speaker 1>really recommend going out to YouTube search Bloomberg Podcasts and

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<v Speaker 1>you'll see the live broadcast. It's pictures of Lisa and

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<v Speaker 1>Michael Barr and two ugly guys, and there's also separate

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<v Speaker 1>the same look, but it's a tape record of the

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<v Speaker 1>three hours of Bloomberg surveillance. You can go in there

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<v Speaker 1>Global Wall Street and listen to all of Nicholas. I

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<v Speaker 1>think that's very valuable as well. First thing I looked

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<v Speaker 1>at this morning, just by chance, was gold out to

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<v Speaker 1>a record high. Brought up the te function the trading envelope,

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<v Speaker 1>and there was gold slipping out to a new high,

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<v Speaker 1>which means you have to drag on Dennis Gartment. Let

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<v Speaker 1>me explain. You can buy gold. You can buy it

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<v Speaker 1>in US dollars, you can buy it in euros. Well

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<v Speaker 1>over a decade ago, Dennis Gartman said, you ought to

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<v Speaker 1>buy gold, and you ought to buy it in an

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<v Speaker 1>overappreciate again, because the yen will depreciate why you own

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<v Speaker 1>your gold, and gold will go up on a relative basis.

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<v Speaker 1>Even more, it's one of the great trades of the decade.

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<v Speaker 1>Here Dennis Gartman on the gold dynamic and the yen dynamic.

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<v Speaker 3>I think gold is a precursor to a higher inflation.

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<v Speaker 3>But you clearly need to have inflationary pressures above two

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<v Speaker 3>and three percent to keep gold moving from at the

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<v Speaker 3>angle that it has been moving from the lower left

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<v Speaker 3>to the upper right. But again, gold is driven by

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<v Speaker 3>two motive forces, inflation and geopolitical circumstances, and right now

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<v Speaker 3>I think geopolitical circumstances are the driving motive force. Plus

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<v Speaker 3>the fact it was a little bit disconcerting to me

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<v Speaker 3>that the bricks Nations met last week and didn't announce

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<v Speaker 3>a substantive change in their dollar policies and a substantive

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<v Speaker 3>change in the purchase of gold that was a bit disappointing,

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<v Speaker 3>but gold has held very well despite that disappointment. Always

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<v Speaker 3>buy things that go up when the news has been

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<v Speaker 3>relatively disappointing.

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<v Speaker 1>That's a really important concept. Let me talk about that,

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<v Speaker 1>Dennis Gartman there on gold in Yen. This is a

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<v Speaker 1>real core investment idea. So let's take shorting, where you

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<v Speaker 1>believe something's going to go down in price is a rule.

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<v Speaker 1>The optimum short is when a lousy stock in a

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<v Speaker 1>lousy sector in a lousy market goes down. It's hard

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<v Speaker 1>to find, but believe me, that's when it's best, most efficacious,

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<v Speaker 1>if you will. What Dennis is talking about, of course,

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<v Speaker 1>is how do stocks react when there is adversity and

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<v Speaker 1>you want to get things that go down less when

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<v Speaker 1>you go down. That's something to study for. Is well.

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<v Speaker 1>We have a busy week. Went back and forth with

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<v Speaker 1>David Gerra. He's on the swing state tour. Kaylee said

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<v Speaker 1>he's in Wisconsin, but maybe that was an hour ago.

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<v Speaker 1>Maybe he's like taking the Sikorski over to Pennsylvania. I'm

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<v Speaker 1>really not sure. Gurra out on the road as we go,

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<v Speaker 1>the election dash into the end of the week. The

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<v Speaker 1>jobs report on Friday and then across over to this

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<v Speaker 1>historic Tuesday election balance of power leading our coverage with

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<v Speaker 1>Jonathan Farrell. Look for that, Jonathan Farrell, Joe Matthew, Kaylee

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<v Speaker 1>lines in a cast of thousands election night. We will

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<v Speaker 1>be there early the next morning to tell you that

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<v Speaker 1>we haven't had a decided election yet. That seems to

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<v Speaker 1>be where we're heading as well. We're on YouTube, subscribe

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