1 00:00:00,440 --> 00:00:03,840 Speaker 1: Strap on your parachute. Is time for What Goes Up 2 00:00:04,120 --> 00:00:13,840 Speaker 1: with Sarah Ponzick and Mike Reagan. Hello and welcome to 3 00:00:13,880 --> 00:00:17,640 Speaker 1: What goes Up, a Bloomberg Weekly Markets podcast. I'm Sara Ponze, 4 00:00:17,960 --> 00:00:20,800 Speaker 1: reporter on the Cross Asset team, and I'm Mike Reagan, 5 00:00:21,000 --> 00:00:24,960 Speaker 1: a senior editor at Bloomberg and not the Mike Reagan 6 00:00:25,040 --> 00:00:27,520 Speaker 1: who is just nominated to leave the e p A, 7 00:00:27,640 --> 00:00:30,680 Speaker 1: the Environmental Production Agency. I will point out, did you 8 00:00:30,720 --> 00:00:34,200 Speaker 1: actually get Twitter followers after the announcement night? After Wisenthal 9 00:00:34,800 --> 00:00:38,440 Speaker 1: congratulated me for the new job As a joke, I 10 00:00:38,440 --> 00:00:42,880 Speaker 1: I got about thirty new Twitter followers, So hopefully they'll 11 00:00:42,880 --> 00:00:45,760 Speaker 1: stick around for the dad jokes and market commentary. Even 12 00:00:45,760 --> 00:00:48,080 Speaker 1: though I don't have a lot to offer on the environment. 13 00:00:48,080 --> 00:00:49,879 Speaker 1: I'm a fan of the environment. I'm just not the 14 00:00:49,880 --> 00:00:52,280 Speaker 1: guy in charge of it, so we'll leave it at that. 15 00:00:52,280 --> 00:00:56,160 Speaker 1: That's hysterical. That's hysterical. And for anyone who's not aware Wisenthal, 16 00:00:56,200 --> 00:00:59,680 Speaker 1: that's Joe Wisenthal. He's the host of the Odd Lots 17 00:00:59,720 --> 00:01:02,560 Speaker 1: podcas as step Bloombergigat does plenty of other things as 18 00:01:02,600 --> 00:01:04,840 Speaker 1: well here, but if you haven't checked out the Odd 19 00:01:04,880 --> 00:01:08,160 Speaker 1: Lads podcast please do. You can find it pretty much 20 00:01:08,160 --> 00:01:10,960 Speaker 1: anywhere you get your podcasts. But this week on the show, 21 00:01:11,319 --> 00:01:14,160 Speaker 1: the US dollar continues its decline as the M S 22 00:01:14,160 --> 00:01:16,640 Speaker 1: c I All Country, World and Next trades a record highs. 23 00:01:16,920 --> 00:01:19,520 Speaker 1: In addition to that, emerging market equities are on pace 24 00:01:19,600 --> 00:01:22,120 Speaker 1: for their best quarter versus U S docks since two 25 00:01:22,160 --> 00:01:25,640 Speaker 1: thousand and nine. Well, the momentum continue through next year 26 00:01:25,720 --> 00:01:29,200 Speaker 1: and beyond. We get the state of play on international assets, 27 00:01:29,760 --> 00:01:32,080 Speaker 1: and as always, will close out the episode with our 28 00:01:32,160 --> 00:01:36,520 Speaker 1: tradition the craziest Thing I saw in markets this week, Sarah, 29 00:01:36,600 --> 00:01:40,080 Speaker 1: I've got a contribution from none other than our Crazy 30 00:01:40,160 --> 00:01:44,560 Speaker 1: Things correspondent Vildonna Hirich, who said to me, I'm not 31 00:01:44,600 --> 00:01:46,840 Speaker 1: telling sorry about this one. I'm giving it right to you, 32 00:01:47,319 --> 00:01:48,920 Speaker 1: So I don't know how you feel about that. Well, 33 00:01:49,000 --> 00:01:50,680 Speaker 1: she didn't even tell me that she was going to 34 00:01:50,760 --> 00:01:52,280 Speaker 1: do a roundabout and come to you. I had no 35 00:01:52,360 --> 00:01:54,960 Speaker 1: idea this was coming. But I will say we also 36 00:01:55,040 --> 00:01:59,000 Speaker 1: have a trifecta of guests rite ins. We have a voicemail. 37 00:01:59,360 --> 00:02:01,600 Speaker 1: I got a ib which for those who do not 38 00:02:01,760 --> 00:02:04,600 Speaker 1: have a Bloomberg terminal, it's like instant message. It's your 39 00:02:04,600 --> 00:02:07,160 Speaker 1: instant Bloomberg. And then I also got a direct message 40 00:02:07,200 --> 00:02:10,000 Speaker 1: on Twitter. So we've got plenty of crazy things. Thank 41 00:02:10,240 --> 00:02:13,680 Speaker 1: thank goodness for that. Right, But let's first start with 42 00:02:13,680 --> 00:02:15,880 Speaker 1: that market talk that we know you all came for. 43 00:02:16,120 --> 00:02:18,600 Speaker 1: And uh happy to have a new guest this week 44 00:02:18,639 --> 00:02:22,519 Speaker 1: on the show. He runs the International and Global Mutual 45 00:02:22,560 --> 00:02:27,800 Speaker 1: Fund and EATF business at Davis Selected Advisors. His name 46 00:02:27,919 --> 00:02:30,840 Speaker 1: is Danton, Go Eat Dance and welcome to the show. 47 00:02:31,040 --> 00:02:33,000 Speaker 1: Thanks so much Mike for having me on on board. 48 00:02:33,240 --> 00:02:36,160 Speaker 1: Very excited. Oh great, you know and Ted. And before 49 00:02:36,160 --> 00:02:38,520 Speaker 1: we start talking about markets, I gotta say we get 50 00:02:38,600 --> 00:02:41,960 Speaker 1: notes about the guests from you know, the PR people 51 00:02:42,000 --> 00:02:44,480 Speaker 1: that you guys work with, our our good friend Tyler Bradford. 52 00:02:44,480 --> 00:02:47,320 Speaker 1: In this case, I gotta ask you first about something 53 00:02:47,360 --> 00:02:50,360 Speaker 1: he pointed out, which I think I think is fascinating. Says, 54 00:02:50,440 --> 00:02:54,160 Speaker 1: every summer, Danton travels to a new international destination to 55 00:02:54,240 --> 00:02:58,280 Speaker 1: live with his family until school starts back up. That's 56 00:02:58,280 --> 00:03:00,560 Speaker 1: fascinating to me. For one thing, I'm glad my kids 57 00:03:00,600 --> 00:03:02,960 Speaker 1: don't listen to the podcast because I don't want them 58 00:03:02,960 --> 00:03:05,720 Speaker 1: to know that's an option for summer summer the kids. 59 00:03:07,080 --> 00:03:09,000 Speaker 1: But I think that's a really cool tradition. Is that 60 00:03:09,160 --> 00:03:11,600 Speaker 1: just for fun or is that as sort of uh 61 00:03:11,639 --> 00:03:14,919 Speaker 1: an international equity specialist. Is it part of your research? 62 00:03:15,360 --> 00:03:16,800 Speaker 1: You know? And and you don't have to tell me 63 00:03:16,880 --> 00:03:19,040 Speaker 1: what you're expensing on your expense account or not. But 64 00:03:19,200 --> 00:03:21,639 Speaker 1: I'm curious if it's if it ties into your work 65 00:03:21,720 --> 00:03:23,880 Speaker 1: or if it's just for fun. Yeah. No, happy to 66 00:03:23,880 --> 00:03:26,200 Speaker 1: talk to them, like to your kids about this, but 67 00:03:28,639 --> 00:03:32,680 Speaker 1: he's he's gonna block you. It is absolutely part of 68 00:03:32,720 --> 00:03:36,280 Speaker 1: our research process to go visit companies, you know, in 69 00:03:36,320 --> 00:03:39,400 Speaker 1: their home markets, in their offices and talk to the companies, 70 00:03:39,440 --> 00:03:42,840 Speaker 1: talk to the competitors or suppliers or customers. And since 71 00:03:42,880 --> 00:03:46,680 Speaker 1: we are a global fund, those companies are around the globe, 72 00:03:46,720 --> 00:03:49,000 Speaker 1: you know where our team is based here in New York, 73 00:03:49,360 --> 00:03:51,800 Speaker 1: meaning that we travel a lot. But this is a 74 00:03:51,800 --> 00:03:54,560 Speaker 1: way to really spend instead of you know, a week 75 00:03:54,680 --> 00:03:57,600 Speaker 1: or two on the ground in the country, to spend 76 00:03:57,640 --> 00:04:01,320 Speaker 1: two or three months. And so for the last dozen 77 00:04:01,440 --> 00:04:04,160 Speaker 1: years we've been doing this with my wife, with the 78 00:04:04,280 --> 00:04:08,600 Speaker 1: three kids, and we alternate between Asia one one year 79 00:04:08,840 --> 00:04:11,880 Speaker 1: and Europe the other year. You know, I grew up 80 00:04:12,440 --> 00:04:16,440 Speaker 1: in France and I was born in Germany, so you know, 81 00:04:16,480 --> 00:04:20,520 Speaker 1: Europe and in some senses my home, but my family 82 00:04:20,839 --> 00:04:24,040 Speaker 1: is in Adonesian Chinese, and I speak Mandarin, so I 83 00:04:24,080 --> 00:04:27,080 Speaker 1: feel comfortable in Asia as well. So both places have 84 00:04:27,160 --> 00:04:29,360 Speaker 1: a lot of contacts, and then the last dozen years 85 00:04:29,360 --> 00:04:31,640 Speaker 1: have been able to build that network. So it's been 86 00:04:31,640 --> 00:04:33,480 Speaker 1: a really fantastic way to kind of build a network 87 00:04:33,720 --> 00:04:35,560 Speaker 1: over time and visit these companies and a lot of 88 00:04:35,600 --> 00:04:38,160 Speaker 1: the companies that we own in the portfolio. So yeah, 89 00:04:38,480 --> 00:04:41,279 Speaker 1: I would highly recommend it. So really quickly before we 90 00:04:41,320 --> 00:04:43,280 Speaker 1: get to the market's talk, I have to ask them, 91 00:04:43,320 --> 00:04:45,800 Speaker 1: do you have a favorite country or a favorite place 92 00:04:46,040 --> 00:04:48,640 Speaker 1: that you you've ever lived? You know, I think right 93 00:04:48,640 --> 00:04:52,479 Speaker 1: now one of the most exciting markets to be obviously, 94 00:04:53,200 --> 00:04:55,520 Speaker 1: you know, it's sort of an asterisk is an unusual year, 95 00:04:55,560 --> 00:04:59,440 Speaker 1: but has been China over the last few decades to watch, 96 00:04:59,520 --> 00:05:00,960 Speaker 1: you know, the first time I went to China was 97 00:05:01,080 --> 00:05:06,520 Speaker 1: nine and it was a totally different country and market 98 00:05:06,520 --> 00:05:09,080 Speaker 1: than it is today. But be able to see the 99 00:05:09,200 --> 00:05:13,360 Speaker 1: last three decades of evolution over there has been really fascinating. 100 00:05:13,760 --> 00:05:16,120 Speaker 1: But of course I have a soft part in my 101 00:05:16,240 --> 00:05:19,360 Speaker 1: heart for France. That's where I grew up, That's where 102 00:05:19,400 --> 00:05:22,480 Speaker 1: all my high school friends are, so it is always 103 00:05:22,560 --> 00:05:24,520 Speaker 1: nice to go back home. It's where my mother. My 104 00:05:24,560 --> 00:05:27,359 Speaker 1: mother still lives there, so um it is nice to 105 00:05:27,360 --> 00:05:29,560 Speaker 1: go home there as well. And of course the quality 106 00:05:29,560 --> 00:05:32,040 Speaker 1: of life can't be beat over there and much more 107 00:05:32,040 --> 00:05:52,840 Speaker 1: comfortable than China. It's a great tradition and your kids 108 00:05:52,880 --> 00:05:55,840 Speaker 1: must really benefit from the education value of it. To 109 00:05:56,160 --> 00:05:58,800 Speaker 1: uh Sarah I, I once was able to get a 110 00:05:58,800 --> 00:06:01,320 Speaker 1: week in Jamaica to report about the stock exchange there, 111 00:06:01,320 --> 00:06:04,279 Speaker 1: but Denton's got me beat hands down. I think this 112 00:06:04,279 --> 00:06:09,200 Speaker 1: this is kids because my kids go to Chinese summer 113 00:06:09,240 --> 00:06:13,440 Speaker 1: camp with the locals in China or Taiwan or Hong Kong, 114 00:06:13,600 --> 00:06:15,560 Speaker 1: depending on where we are, and then they go to 115 00:06:15,720 --> 00:06:18,359 Speaker 1: summer camp a French summer camp in France with the 116 00:06:18,400 --> 00:06:20,599 Speaker 1: locals as well. You know, they've been kind of thrown 117 00:06:20,600 --> 00:06:25,640 Speaker 1: in the deep end at an early age. That's that's 118 00:06:25,640 --> 00:06:28,919 Speaker 1: great though. Well, one thing I wanted to ask you, 119 00:06:29,040 --> 00:06:31,640 Speaker 1: let's let's dive into the markets now, and um, I 120 00:06:31,680 --> 00:06:34,000 Speaker 1: was looking at the holdings of the Global Fund at 121 00:06:34,080 --> 00:06:38,320 Speaker 1: Davis done very well, very very strong percentile performance, and 122 00:06:38,320 --> 00:06:40,400 Speaker 1: correct me some of these numbers might be outdated. You know, 123 00:06:40,400 --> 00:06:43,039 Speaker 1: we're we're working off of whatever the most recent filings was, 124 00:06:43,120 --> 00:06:47,400 Speaker 1: but about of the global fund allocated to the US 125 00:06:47,720 --> 00:06:49,920 Speaker 1: at least of the last reporting we have for it. 126 00:06:50,720 --> 00:06:53,360 Speaker 1: And here we are as the year sort of closes 127 00:06:53,360 --> 00:06:55,120 Speaker 1: out here, and I think a big theme I keep 128 00:06:55,120 --> 00:06:59,560 Speaker 1: hearing from investors is that everyone's looking outside of the 129 00:06:59,640 --> 00:07:04,080 Speaker 1: US for one, thinking that it's kind of time for international, 130 00:07:04,480 --> 00:07:07,799 Speaker 1: for emerging markets to shine. Is that up your rethinking 131 00:07:08,000 --> 00:07:10,240 Speaker 1: a big allocation to the US at all, or or 132 00:07:10,360 --> 00:07:12,440 Speaker 1: you just you know, sticking with what's worked so far 133 00:07:12,800 --> 00:07:15,480 Speaker 1: and and not worrying about sort of the the consensus 134 00:07:15,480 --> 00:07:17,840 Speaker 1: and the zeitgeist out there with with what everyone's talking 135 00:07:17,840 --> 00:07:20,640 Speaker 1: about rotating to international. Yeah, I mean, I think people 136 00:07:20,920 --> 00:07:24,440 Speaker 1: for good reason are looking internationally. They have kind of 137 00:07:24,480 --> 00:07:26,600 Speaker 1: said that, I think the last two or three years. 138 00:07:26,680 --> 00:07:29,880 Speaker 1: But the US market is sort of is powered through anyways, 139 00:07:30,240 --> 00:07:32,840 Speaker 1: but there is a good reason to look abroad. Right now. 140 00:07:32,880 --> 00:07:39,400 Speaker 1: Evaluations are about lower international markets on average than the 141 00:07:39,480 --> 00:07:42,840 Speaker 1: US market, So that's already a great starting point. And 142 00:07:42,880 --> 00:07:45,560 Speaker 1: we know that the last decade the US market has 143 00:07:45,560 --> 00:07:48,080 Speaker 1: been very strong. But these things go in cycles, so 144 00:07:48,120 --> 00:07:51,040 Speaker 1: it's very possible in the next decade, you know, international 145 00:07:51,080 --> 00:07:55,000 Speaker 1: markets do as well. If not better than US markets, 146 00:07:55,040 --> 00:07:58,800 Speaker 1: but you know, we run a very focused portfolio of 147 00:07:59,600 --> 00:08:03,480 Speaker 1: uh thirty five forty sort of best of breed companies. 148 00:08:03,960 --> 00:08:06,920 Speaker 1: So when we're looking at the US market, we're not 149 00:08:07,000 --> 00:08:09,800 Speaker 1: really investing in the overall market. We have a very 150 00:08:09,960 --> 00:08:12,720 Speaker 1: concentrated and focused view of companies that we want to own, 151 00:08:13,280 --> 00:08:15,880 Speaker 1: and we're finding, you know, very good opportunities there too. 152 00:08:15,920 --> 00:08:18,000 Speaker 1: But we would say there's a lot of you know, 153 00:08:18,160 --> 00:08:21,600 Speaker 1: froth also in the US market that you want to avoid, 154 00:08:22,240 --> 00:08:25,960 Speaker 1: but underneath that there are some very good values for sure. 155 00:08:26,200 --> 00:08:28,720 Speaker 1: You know, some companies that have done well recently are 156 00:08:28,720 --> 00:08:31,200 Speaker 1: still relatively attractive. I would say we call them sort 157 00:08:31,240 --> 00:08:34,040 Speaker 1: of the growth stalwarts, the sort of the Googles, the 158 00:08:34,080 --> 00:08:36,600 Speaker 1: Facebooks of the world. You know, they continue to be 159 00:08:36,640 --> 00:08:40,319 Speaker 1: attractive on evaluation basis, on long term basis. But then 160 00:08:40,360 --> 00:08:42,880 Speaker 1: you've got a whole host of stocks that have been 161 00:08:42,920 --> 00:08:45,079 Speaker 1: out of favor now for a decade plus, right the 162 00:08:45,160 --> 00:08:48,880 Speaker 1: value stocks out there, and specifically we're thinking about the 163 00:08:48,960 --> 00:08:52,760 Speaker 1: financials and the banks that have been really out of favor, 164 00:08:52,800 --> 00:08:55,240 Speaker 1: you know, basically since the financial crisis and no. Eight 165 00:08:55,240 --> 00:08:58,040 Speaker 1: oh nine, so that was a long time ago, that 166 00:08:58,080 --> 00:09:00,760 Speaker 1: are trading at really low valuation. In fact, when you 167 00:09:00,760 --> 00:09:04,520 Speaker 1: look at the difference between the Russell one thousand growth 168 00:09:05,000 --> 00:09:09,439 Speaker 1: versus the Russell one thousand value performance, it's amazing. It's 169 00:09:09,440 --> 00:09:12,560 Speaker 1: a record gap and difference. So I think, you know, 170 00:09:12,960 --> 00:09:16,439 Speaker 1: owning the market overall in the US probably not recommended, 171 00:09:16,800 --> 00:09:19,760 Speaker 1: but within that space some great values. Let's come back 172 00:09:19,800 --> 00:09:21,800 Speaker 1: to something that you just walked us through. You mentioned 173 00:09:21,800 --> 00:09:23,880 Speaker 1: the word froth that at the same time explained how 174 00:09:23,880 --> 00:09:26,360 Speaker 1: there's growth stalwarts and just because you're a company that's 175 00:09:26,400 --> 00:09:28,959 Speaker 1: performed very very well over the last year, over the 176 00:09:29,040 --> 00:09:32,880 Speaker 1: last decade, it doesn't necessarily mean that your time is over. 177 00:09:33,000 --> 00:09:34,800 Speaker 1: Can you give us a sense of where you do 178 00:09:34,880 --> 00:09:37,400 Speaker 1: see the froth, the areas where you see risk or 179 00:09:37,440 --> 00:09:40,240 Speaker 1: that you would avoid uh, and then maybe bring us 180 00:09:40,240 --> 00:09:42,679 Speaker 1: through some of the misconceptions that there are. Yeah, I mean, 181 00:09:42,679 --> 00:09:44,640 Speaker 1: there are a lot of companies that have done great 182 00:09:44,720 --> 00:09:47,800 Speaker 1: in the past few years, and specifically in that have 183 00:09:48,040 --> 00:09:51,080 Speaker 1: you know, up three, four or five, six times maybe 184 00:09:51,120 --> 00:09:54,440 Speaker 1: even this year. But where the valuations in our mind 185 00:09:54,480 --> 00:09:57,920 Speaker 1: and we're you know, we're value investors, don't make much sense. 186 00:09:58,080 --> 00:10:01,520 Speaker 1: And they're great companies, they make great products, and I'm thinking, 187 00:10:01,520 --> 00:10:04,719 Speaker 1: you know, specifically of a company like Tesla, which has 188 00:10:04,760 --> 00:10:07,560 Speaker 1: done great, right, I mean, i'll test of shareholders have 189 00:10:07,600 --> 00:10:10,720 Speaker 1: been very happy. But when we look at it and 190 00:10:10,920 --> 00:10:14,920 Speaker 1: you know, and see that they manufacture something cars and 191 00:10:14,960 --> 00:10:17,920 Speaker 1: have a over six billion market cap, and then you 192 00:10:17,920 --> 00:10:22,080 Speaker 1: look at General Motors that manufactures seven point seven million 193 00:10:22,480 --> 00:10:25,040 Speaker 1: vehicles and has a sixty billion you know, so one 194 00:10:25,720 --> 00:10:27,880 Speaker 1: of the market cap, you know, one of those two 195 00:10:27,920 --> 00:10:31,160 Speaker 1: things is probably wrong there in terms of how the 196 00:10:31,200 --> 00:10:34,120 Speaker 1: numbers will play out over time. You know, we don't 197 00:10:34,160 --> 00:10:36,960 Speaker 1: own some of these stalks, and they've done great, so 198 00:10:37,080 --> 00:10:40,960 Speaker 1: kudos to whoever owns them, but we would say, just 199 00:10:41,040 --> 00:10:44,000 Speaker 1: on evaluation basis, there's quite a bit of froth in 200 00:10:44,040 --> 00:10:46,080 Speaker 1: some of these. You know, there's just momentum in some 201 00:10:46,320 --> 00:10:48,400 Speaker 1: parts of the market. You know, it's in looking at 202 00:10:48,480 --> 00:10:51,200 Speaker 1: some of the top holdings across a few of the 203 00:10:51,200 --> 00:10:54,120 Speaker 1: funds of Davis, A lot of the big sort of 204 00:10:54,600 --> 00:10:59,199 Speaker 1: market dominating firms in their industries are are pretty heavily 205 00:10:59,200 --> 00:11:04,920 Speaker 1: weighted out Ali Baba and China, Amazon, Alphabet, Facebook here 206 00:11:04,920 --> 00:11:07,440 Speaker 1: in the US, and at the same time, there's this 207 00:11:07,480 --> 00:11:10,599 Speaker 1: big buzz about the anti trust issue, not only in 208 00:11:10,840 --> 00:11:13,280 Speaker 1: the US but in China. You know, ten cent in 209 00:11:13,320 --> 00:11:17,120 Speaker 1: Ali Baba recently getting fined because of some of their 210 00:11:17,120 --> 00:11:21,200 Speaker 1: mergers in the past. I'm curious how you're thinking about 211 00:11:21,200 --> 00:11:24,240 Speaker 1: that issue anti trust. Is it necessarily a scary thing 212 00:11:24,320 --> 00:11:27,680 Speaker 1: to be threatened with an anti trust probe? Yeah, it's certainly, 213 00:11:28,120 --> 00:11:30,679 Speaker 1: um something that's in the news, that's been you know, 214 00:11:30,760 --> 00:11:34,360 Speaker 1: growing as an issue over the last four or five years. 215 00:11:34,800 --> 00:11:36,920 Speaker 1: You know, one that some of these companies like Google 216 00:11:37,320 --> 00:11:39,040 Speaker 1: has been dealing with actually for a while now. I 217 00:11:39,120 --> 00:11:43,199 Speaker 1: in fact, they have been under investigation and dealing with 218 00:11:43,559 --> 00:11:47,480 Speaker 1: sort of fines and remedies in the European Union for 219 00:11:47,760 --> 00:11:50,480 Speaker 1: five years now already, and they've been operating under that. 220 00:11:51,080 --> 00:11:53,880 Speaker 1: And actually, I mean that's a good case where despite 221 00:11:53,880 --> 00:11:58,440 Speaker 1: all of that and a very strict and aggressive antitrust policy, 222 00:11:58,880 --> 00:12:01,080 Speaker 1: they have actually done five and in Europe the market 223 00:12:01,080 --> 00:12:03,680 Speaker 1: share is actually even stronger than in the US, and 224 00:12:03,679 --> 00:12:07,680 Speaker 1: it's well over search market share, and their results have 225 00:12:07,760 --> 00:12:10,920 Speaker 1: been very strong. So they've been able to adapt and 226 00:12:11,000 --> 00:12:14,560 Speaker 1: operate well despite you know, despite that. I mean, in 227 00:12:14,600 --> 00:12:16,640 Speaker 1: some ways, of course, it's a little bit of a 228 00:12:16,679 --> 00:12:19,560 Speaker 1: badge of honor in the sense that you've become so big, 229 00:12:19,800 --> 00:12:23,240 Speaker 1: so successful people will have become very worried about you. 230 00:12:23,480 --> 00:12:25,880 Speaker 1: And it does make sense as a society that we 231 00:12:25,920 --> 00:12:29,439 Speaker 1: are concerned about these you know, these these huge companies 232 00:12:29,679 --> 00:12:32,040 Speaker 1: and they should be regulated. And so the regulators are 233 00:12:32,040 --> 00:12:34,640 Speaker 1: definitely playing a little bit of catch up here. But 234 00:12:34,720 --> 00:12:38,120 Speaker 1: in terms of an investor, you have to really think about, Okay, 235 00:12:38,160 --> 00:12:40,520 Speaker 1: what you know, what has happened in the past. You know, 236 00:12:40,520 --> 00:12:43,600 Speaker 1: it's been relatively benign. What are the possible risks And 237 00:12:43,640 --> 00:12:45,480 Speaker 1: like you said, Mike, I mean that would be a 238 00:12:45,559 --> 00:12:49,199 Speaker 1: draconian measure. We haven't really seen that happen before. Very 239 00:12:49,240 --> 00:12:51,560 Speaker 1: often is sort of the breakup in sort of a 240 00:12:51,880 --> 00:12:54,240 Speaker 1: you know, the d merger of companies that have been 241 00:12:54,320 --> 00:12:57,200 Speaker 1: merged for several years. But even if that does happen, 242 00:12:57,280 --> 00:13:00,920 Speaker 1: it doesn't mean like this business is being nationalized and confiscated. Right. 243 00:13:01,320 --> 00:13:04,120 Speaker 1: And then China it's interesting. I mean, they've actually had 244 00:13:04,160 --> 00:13:08,360 Speaker 1: a much laxer antitrust policy than even the US, so 245 00:13:08,400 --> 00:13:10,840 Speaker 1: in some ways they've been sort of more capitalistic than 246 00:13:10,880 --> 00:13:13,839 Speaker 1: even than the US, but now they're realizing that they 247 00:13:13,880 --> 00:13:17,080 Speaker 1: need to Also, you know that some part some behaviors 248 00:13:17,120 --> 00:13:20,560 Speaker 1: are gotten too extreme. You know, online retailers are forcing 249 00:13:20,559 --> 00:13:23,120 Speaker 1: brands to choose one of the platforms. You know, that's 250 00:13:23,160 --> 00:13:26,439 Speaker 1: probably not great for consumers, right that raises prices and 251 00:13:26,520 --> 00:13:30,280 Speaker 1: reduce the selection they are intervening, And it does make sense. 252 00:13:30,960 --> 00:13:33,319 Speaker 1: Antitrust concerns is a quasi badge of honor. That's a 253 00:13:33,320 --> 00:13:52,280 Speaker 1: different way to look at it. I wanted to ask you, 254 00:13:52,360 --> 00:13:56,360 Speaker 1: danton Um, say you are a a U S investor, 255 00:13:56,800 --> 00:13:59,520 Speaker 1: and odds are you maybe have a home bias and 256 00:13:59,559 --> 00:14:02,559 Speaker 1: you have a very very large allocation to the US. 257 00:14:02,679 --> 00:14:04,920 Speaker 1: We talked about how maybe it's a good time to 258 00:14:04,960 --> 00:14:08,800 Speaker 1: start allocating internationally, but can you walk us through certain areas, 259 00:14:09,160 --> 00:14:12,560 Speaker 1: certain countries, certain regions that that you think are right 260 00:14:12,600 --> 00:14:14,200 Speaker 1: for growth right now and maybe it would make a 261 00:14:14,240 --> 00:14:16,520 Speaker 1: good investment at this point in time. Yeah, So I 262 00:14:16,559 --> 00:14:20,640 Speaker 1: think when you go internationally you have to be extremely selective. 263 00:14:21,120 --> 00:14:23,400 Speaker 1: You know, in our funds we really limit the number 264 00:14:23,440 --> 00:14:26,920 Speaker 1: of countries that were invested in. You know, there's uh, 265 00:14:27,000 --> 00:14:30,440 Speaker 1: for example, twenty six emerging markets. We're really only in 266 00:14:30,520 --> 00:14:33,120 Speaker 1: s or three or four of them. And that's because 267 00:14:33,840 --> 00:14:38,640 Speaker 1: you know, the concerns around economic growth, political stability, sort 268 00:14:38,640 --> 00:14:42,320 Speaker 1: of market access, things like that are important things that 269 00:14:42,360 --> 00:14:44,400 Speaker 1: you maybe worry a little less in the US. You 270 00:14:44,480 --> 00:14:46,360 Speaker 1: have to pay a lot more attention to when you're 271 00:14:46,360 --> 00:14:49,080 Speaker 1: looking at international markets. So when we when we look 272 00:14:49,120 --> 00:14:53,520 Speaker 1: through that and see which markets we think look really interesting, 273 00:14:53,960 --> 00:14:57,320 Speaker 1: you know, China continue to look interesting. It's had, i 274 00:14:57,320 --> 00:15:00,280 Speaker 1: guess overall a pretty good year, but it's still under 275 00:15:00,320 --> 00:15:03,880 Speaker 1: somewhat cloud. You know, you definitely still heal here. Sorry, 276 00:15:03,920 --> 00:15:08,720 Speaker 1: rumblings of the US China geobolitical strain out their intention 277 00:15:09,320 --> 00:15:11,360 Speaker 1: and that's not going away even if there's a change 278 00:15:11,520 --> 00:15:16,280 Speaker 1: in administration happening right now. So that's definitely true. But 279 00:15:16,560 --> 00:15:19,760 Speaker 1: the conditions over there for economic growth are still quite strong. 280 00:15:19,920 --> 00:15:22,200 Speaker 1: I mean, in fact, this year, China is going to 281 00:15:22,280 --> 00:15:25,280 Speaker 1: be there probably the only large economy that's going to grow. 282 00:15:25,640 --> 00:15:27,400 Speaker 1: They're looking at sort of a two percent we know, 283 00:15:27,440 --> 00:15:29,920 Speaker 1: which is still not heroic, but you know, with with 284 00:15:29,960 --> 00:15:32,400 Speaker 1: what happened with COVID in the pandemic, that's still pretty 285 00:15:32,440 --> 00:15:35,680 Speaker 1: strong two percent growth, whereas most countries, including the US, 286 00:15:35,880 --> 00:15:37,640 Speaker 1: we're probably gonna you know where we're in the middle 287 00:15:37,640 --> 00:15:40,400 Speaker 1: of a recession and the next year expectations are sort 288 00:15:40,440 --> 00:15:43,880 Speaker 1: of seven eight percent growth, so obviously pretty strong rebound 289 00:15:44,320 --> 00:15:47,160 Speaker 1: off of a slow year. You know, Increasingly the companies 290 00:15:47,200 --> 00:15:49,720 Speaker 1: there because of course, you're not investing in the country 291 00:15:49,840 --> 00:15:53,200 Speaker 1: or the market. You're investing individual companies. The management teams, 292 00:15:53,480 --> 00:15:55,320 Speaker 1: you know, keep on getting better and better, really high 293 00:15:55,400 --> 00:15:58,040 Speaker 1: quality entrepreneurial managed teams. And then the quality of the 294 00:15:58,080 --> 00:16:00,480 Speaker 1: companies do you have some leading to all of these 295 00:16:00,520 --> 00:16:02,600 Speaker 1: there If you think about you know who the top 296 00:16:02,640 --> 00:16:05,200 Speaker 1: six cloud computing companies out there, of course you think 297 00:16:05,240 --> 00:16:08,800 Speaker 1: of you know, Amazon and Microsoft and Google, but the 298 00:16:08,840 --> 00:16:12,400 Speaker 1: fourth largest is now a Chinese company to Ali Baba. 299 00:16:12,520 --> 00:16:16,120 Speaker 1: Outside of China, I think Southeast Asia also looks pretty attractive. 300 00:16:16,120 --> 00:16:19,800 Speaker 1: I mean, it's a conglomeration of sort of six or 301 00:16:19,840 --> 00:16:22,960 Speaker 1: seven countries, but together you have about a population around 302 00:16:22,920 --> 00:16:26,640 Speaker 1: six hundred million people, so that's almost half the size 303 00:16:26,920 --> 00:16:30,280 Speaker 1: of China, for example, so a very large market together. 304 00:16:30,760 --> 00:16:34,520 Speaker 1: That is, the democraptics are favorable where the economic growth 305 00:16:34,600 --> 00:16:37,720 Speaker 1: is strong. So I think that's a pretty interesting area 306 00:16:37,800 --> 00:16:41,120 Speaker 1: to to look at. You know, then, uh, Latin America 307 00:16:41,760 --> 00:16:45,840 Speaker 1: I think long term also would be interesting. It's pretty fascinating. 308 00:16:46,080 --> 00:16:48,160 Speaker 1: Uh debts and to talk to a guy like you 309 00:16:48,240 --> 00:16:51,960 Speaker 1: who has um sort of discretion to to invest anywhere 310 00:16:51,960 --> 00:16:54,600 Speaker 1: in the world basically, uh, for for at least a 311 00:16:54,640 --> 00:16:56,800 Speaker 1: few of these funds, and I'm just you know, it's 312 00:16:56,840 --> 00:17:00,240 Speaker 1: such a huge universe of stocks out there around the world. 313 00:17:00,240 --> 00:17:03,920 Speaker 1: I'm curious how your process works, you know, how do 314 00:17:03,960 --> 00:17:08,320 Speaker 1: you start narrowing down that massive universe of stocks around 315 00:17:08,320 --> 00:17:10,800 Speaker 1: the world. Is it sort of country by country like 316 00:17:10,840 --> 00:17:12,640 Speaker 1: you were just saying, do you try to go by 317 00:17:12,760 --> 00:17:15,200 Speaker 1: GDP growth? Is it a you know, run a screen 318 00:17:15,280 --> 00:17:18,679 Speaker 1: of evaluations. What's what's the process like to hunt for 319 00:17:18,680 --> 00:17:21,480 Speaker 1: that next by You're absolutely right, Like, you know, there's 320 00:17:21,880 --> 00:17:25,800 Speaker 1: about three thousand companies in the Global Index. That's a 321 00:17:26,160 --> 00:17:28,800 Speaker 1: huge amount of companies to follow and stay on top 322 00:17:28,840 --> 00:17:31,360 Speaker 1: of and be familiar with. And of course in that 323 00:17:31,480 --> 00:17:34,080 Speaker 1: there's lots of companies that you would never want to 324 00:17:34,119 --> 00:17:37,880 Speaker 1: invest in, you know, state own enterprises, these old industrials 325 00:17:37,960 --> 00:17:42,480 Speaker 1: and telecoms and utility companies or stay owned banks in general. 326 00:17:42,800 --> 00:17:45,560 Speaker 1: We're gonna avoid already that big part of the market 327 00:17:45,560 --> 00:17:47,960 Speaker 1: because they're not really run for shareholders, they have other 328 00:17:48,240 --> 00:17:51,520 Speaker 1: interest at heart. But we really kind of focus on 329 00:17:51,680 --> 00:17:54,480 Speaker 1: at the industry level, right, and so we're trying to 330 00:17:54,560 --> 00:18:00,760 Speaker 1: understand whether it's consumer or industrials or sort of technology. 331 00:18:00,760 --> 00:18:05,080 Speaker 1: Where are the great companies, where are you know, innovation. 332 00:18:06,080 --> 00:18:08,919 Speaker 1: Where are the great brands anywhere in the world, and 333 00:18:08,960 --> 00:18:11,760 Speaker 1: then so the world we'll follow that lead. With that said, Mike, 334 00:18:11,840 --> 00:18:15,200 Speaker 1: I'm pretty sure it's that time. It is that time. 335 00:18:15,920 --> 00:18:19,520 Speaker 1: Stand clear of the craziest things we saw in markets 336 00:18:19,600 --> 00:18:22,600 Speaker 1: this week. Sir, why don't you get it started. You 337 00:18:22,680 --> 00:18:25,800 Speaker 1: have a bunch of contributions from the voice. Oh, we 338 00:18:25,840 --> 00:18:29,360 Speaker 1: have a voicemail. Let's play that. Hi, this is Tim. 339 00:18:29,480 --> 00:18:36,000 Speaker 1: President Obama's high school basketball jersey got auctioned off for 340 00:18:36,359 --> 00:18:40,600 Speaker 1: a hundred and ninety two thousand dollars. This is more 341 00:18:40,680 --> 00:18:43,520 Speaker 1: than what Michael Jordan's was, Fred seventy three thousand. End 342 00:18:43,560 --> 00:18:46,359 Speaker 1: of broad James was we're like a eighty five or 343 00:18:46,400 --> 00:18:51,920 Speaker 1: something thousands. So President Obama's of high school jersey for 344 00:18:53,000 --> 00:18:56,520 Speaker 1: thousand was the most expensive high school basketball jersey that 345 00:18:56,720 --> 00:18:59,560 Speaker 1: has ever been auctioned. Always great to get a voicemail, 346 00:18:59,680 --> 00:19:01,920 Speaker 1: every one. Remember if you want to give us a call, 347 00:19:01,960 --> 00:19:04,720 Speaker 1: that number is six four six three two four three 348 00:19:04,800 --> 00:19:07,600 Speaker 1: four nine zero. And just as you heard, we may 349 00:19:07,680 --> 00:19:10,000 Speaker 1: even play your message on the show. But not only 350 00:19:10,000 --> 00:19:12,040 Speaker 1: did we get a voicemail, as I said earlier, we 351 00:19:12,160 --> 00:19:15,680 Speaker 1: also got other writings too. So first I'll read this one. 352 00:19:15,760 --> 00:19:18,160 Speaker 1: This came through on the Bloomberg terminal from Stephen Kaminski 353 00:19:18,240 --> 00:19:21,360 Speaker 1: of Jump Systems. Uh So, this is what he said. 354 00:19:21,359 --> 00:19:23,840 Speaker 1: He said, we all already know one of the craziest 355 00:19:23,880 --> 00:19:27,600 Speaker 1: moments in this crazy year was oil going negative in April. 356 00:19:27,920 --> 00:19:31,440 Speaker 1: Perhaps even crazier, though, is nine traders at Vega Capital, 357 00:19:31,480 --> 00:19:34,080 Speaker 1: whereas a group the biggest sellers of w t I 358 00:19:34,160 --> 00:19:37,040 Speaker 1: futures and spreads. On that day they made six hundred 359 00:19:37,080 --> 00:19:39,920 Speaker 1: sixty million dollars. Even the son of one of the 360 00:19:40,000 --> 00:19:43,320 Speaker 1: Vega traders, who's in his early twenties with limited experience, 361 00:19:43,400 --> 00:19:47,879 Speaker 1: made eight million all caps. Wild story, and I do 362 00:19:48,040 --> 00:19:50,480 Speaker 1: encourage this is a great story. One of the reporters 363 00:19:50,480 --> 00:19:52,960 Speaker 1: on this was Liam Vaughan. We had him as a 364 00:19:53,000 --> 00:19:55,800 Speaker 1: guest on one of our prior podcasts. He's a great, 365 00:19:55,840 --> 00:19:59,159 Speaker 1: great storyteller. Um So, I encourage you to go read it, 366 00:19:59,240 --> 00:20:01,080 Speaker 1: and then uh I'll read the other one as well. 367 00:20:01,119 --> 00:20:05,359 Speaker 1: This one came through on Twitter from at Term Management. 368 00:20:06,000 --> 00:20:09,919 Speaker 1: He said, the craziest thing in markets this week full disclosure. 369 00:20:10,000 --> 00:20:12,320 Speaker 1: He wrote this at the end of last week two, 370 00:20:12,400 --> 00:20:14,040 Speaker 1: but didn't quite make it in because we had already 371 00:20:14,080 --> 00:20:16,480 Speaker 1: recorded the podcast. He said, airb nb I p O 372 00:20:16,520 --> 00:20:19,680 Speaker 1: getting plenty of attention for performance in early trading. Meanwhile, 373 00:20:20,040 --> 00:20:23,000 Speaker 1: pebble Brook Hotel Trust, this is peb The ticker is 374 00:20:23,280 --> 00:20:26,800 Speaker 1: priced four fifty million dollars of six year paper at 375 00:20:26,920 --> 00:20:30,000 Speaker 1: one point seven five. And then you went on to 376 00:20:30,040 --> 00:20:32,320 Speaker 1: explain you may be familiar, but the hotel reads carry 377 00:20:32,359 --> 00:20:35,119 Speaker 1: basically all the operational leverage, and the operators don't actually 378 00:20:35,160 --> 00:20:38,159 Speaker 1: have much downside exposure. Current hotel occupancy is in the 379 00:20:38,240 --> 00:20:40,720 Speaker 1: upper thirties. Uh And then he went on, he goes 380 00:20:40,960 --> 00:20:44,639 Speaker 1: and yet creditors underwriting a yield of less than two percent, 381 00:20:44,800 --> 00:20:48,119 Speaker 1: limitless investor appetite for anything related to the quote unquote 382 00:20:48,119 --> 00:20:51,639 Speaker 1: reopening trade. And it really is remarkable, Mike, it really is. 383 00:20:51,920 --> 00:20:54,520 Speaker 1: That's I believe that's froth with a capital F right 384 00:20:54,560 --> 00:20:58,480 Speaker 1: there for that mistake. But I'm curious what you think. 385 00:20:58,520 --> 00:21:01,560 Speaker 1: You know, we've seen some really popping uh I p 386 00:21:01,760 --> 00:21:05,720 Speaker 1: O debuts in the last week or so. You guys 387 00:21:05,720 --> 00:21:11,359 Speaker 1: seem focused mainly on the more mature companies. How you 388 00:21:11,400 --> 00:21:14,080 Speaker 1: know big of an IPO? How how attractive does an 389 00:21:14,119 --> 00:21:16,560 Speaker 1: IPO have to be to sort of catch your attention 390 00:21:16,640 --> 00:21:18,280 Speaker 1: or do you like to wait and see that the 391 00:21:18,359 --> 00:21:21,320 Speaker 1: company's lasted a few years before you get involved. Yeah, 392 00:21:21,359 --> 00:21:23,320 Speaker 1: I mean it depends. Um. You know, some of these 393 00:21:23,359 --> 00:21:26,199 Speaker 1: I p O companies actually have been uh, you know, 394 00:21:26,359 --> 00:21:30,320 Speaker 1: large companies operating at scale for many years. That might 395 00:21:30,320 --> 00:21:34,200 Speaker 1: not have been the case years ago, because when you're 396 00:21:34,200 --> 00:21:37,320 Speaker 1: that large, you know you've already come public. But now 397 00:21:37,320 --> 00:21:40,480 Speaker 1: with the strength of the private markets, uh, these companies 398 00:21:40,520 --> 00:21:43,120 Speaker 1: have not had too uh. And then you know there's 399 00:21:43,440 --> 00:21:45,720 Speaker 1: other reasons. You know, the star bans Aukleys and things 400 00:21:45,720 --> 00:21:48,720 Speaker 1: that like that have just sort of dissuaded people from 401 00:21:48,720 --> 00:21:51,399 Speaker 1: from from coming public. And then the focus on quarterly 402 00:21:51,480 --> 00:21:54,000 Speaker 1: earnings is sort of a turn off as well, So 403 00:21:54,080 --> 00:21:57,520 Speaker 1: there's been good reasons why they stayed private. You see 404 00:21:57,600 --> 00:22:00,320 Speaker 1: some of these companies coming out and they're actually relatively sure. 405 00:22:00,680 --> 00:22:03,679 Speaker 1: We're very valuation sensitive and so we'll look at some 406 00:22:03,760 --> 00:22:06,920 Speaker 1: of these and if it makes sense, participate, But in general, 407 00:22:07,320 --> 00:22:13,840 Speaker 1: we're really mostly focused on the publicly traded companies out there. Interesting. Interesting, alright, 408 00:22:13,960 --> 00:22:15,560 Speaker 1: n before we put you on the spot for your 409 00:22:15,600 --> 00:22:19,720 Speaker 1: crazy thing, I'll give you mine via vill Donna, high 410 00:22:19,800 --> 00:22:23,560 Speaker 1: rich and very high expectation. It's a good one because 411 00:22:23,560 --> 00:22:25,960 Speaker 1: it will allow us to play little prices right here 412 00:22:26,000 --> 00:22:29,200 Speaker 1: on on what this is. Obviously it's an alternative asset. 413 00:22:29,600 --> 00:22:35,080 Speaker 1: As you know, is um u inclined to delve into auction. 414 00:22:35,119 --> 00:22:40,280 Speaker 1: In in UH London by Christie's, the first commercially printed 415 00:22:40,400 --> 00:22:44,159 Speaker 1: Christmas card is up for sale. It's a merry Victorian 416 00:22:44,240 --> 00:22:48,400 Speaker 1: era scene that scandalized some who denounced it as humbug 417 00:22:48,440 --> 00:22:51,199 Speaker 1: when it first appeared in eighteen forty three, and that 418 00:22:51,359 --> 00:22:54,760 Speaker 1: that great lead is courtesy of the Associated Press. Uh. 419 00:22:54,960 --> 00:22:58,000 Speaker 1: So it was controversial because it's a picture of a 420 00:22:58,080 --> 00:23:02,719 Speaker 1: family having a big, happy Christmas meal, but they're all 421 00:23:02,800 --> 00:23:05,879 Speaker 1: drinking wine and there's even someone offering some wine to 422 00:23:06,119 --> 00:23:09,680 Speaker 1: a young toddler at the table. So I think the 423 00:23:09,680 --> 00:23:12,840 Speaker 1: the temperance movement in UH in England in the in 424 00:23:12,880 --> 00:23:15,600 Speaker 1: the late eighteen hundreds was not very happy about this. 425 00:23:16,080 --> 00:23:20,240 Speaker 1: So so it was very controversial. They say only a 426 00:23:20,280 --> 00:23:24,439 Speaker 1: thousand were printed first commercial Christmas card a thousand printed, 427 00:23:24,480 --> 00:23:28,000 Speaker 1: Only about thirty left started knowing what you know about 428 00:23:28,000 --> 00:23:31,760 Speaker 1: the alternative assets space? Uh, what's your what's your price 429 00:23:31,800 --> 00:23:34,720 Speaker 1: on this? Because you know I'm a professional now an 430 00:23:34,720 --> 00:23:38,560 Speaker 1: alternative asset, that's right. I think the common thread with 431 00:23:38,680 --> 00:23:43,800 Speaker 1: these prices rights has really been that. Typically they cost 432 00:23:44,280 --> 00:23:48,440 Speaker 1: much less than we're inclined to guess. So I'm gonna 433 00:23:48,480 --> 00:23:51,080 Speaker 1: I'm gonna low ball it, uh, and I'm going to 434 00:23:51,200 --> 00:23:57,040 Speaker 1: go I'm gonna go six d dollars, six hundred dollars. Okay, 435 00:23:57,080 --> 00:24:01,440 Speaker 1: what a scrooge? Cheez, six hundred dollars, Denton, how much 436 00:24:01,480 --> 00:24:06,280 Speaker 1: are you willing to bid for the first commercially available 437 00:24:06,400 --> 00:24:10,560 Speaker 1: Christmas card from forty I believe it is. I know, 438 00:24:11,359 --> 00:24:15,040 Speaker 1: I think I just saw that, like um, Gretzky's rookie 439 00:24:15,840 --> 00:24:21,040 Speaker 1: card went for a million dollars. That was actually that 440 00:24:21,119 --> 00:24:25,360 Speaker 1: was going to be my personal if we needed it. Uh, 441 00:24:25,400 --> 00:24:29,000 Speaker 1: you know, maybe not Gretzky levels, but certainly more than six. 442 00:24:29,480 --> 00:24:34,360 Speaker 1: Come on, Sarah, every look, every time we play prices, right, 443 00:24:34,760 --> 00:24:39,680 Speaker 1: I guess something ridiculous like two hundred thousand dollars five 444 00:24:39,760 --> 00:24:44,800 Speaker 1: million dollars, and everything is typically way below what I guess. 445 00:24:44,840 --> 00:24:47,159 Speaker 1: So the wise move here, Denton is for you to 446 00:24:47,200 --> 00:24:49,399 Speaker 1: bid six or one. That's what I would That's what 447 00:24:49,480 --> 00:24:51,080 Speaker 1: I would do. I know I've watched I'll put you 448 00:24:51,160 --> 00:24:53,240 Speaker 1: down for six. So I watched a lot of prices 449 00:24:53,320 --> 00:24:55,600 Speaker 1: right in my childhood, and I would I would go 450 00:24:55,640 --> 00:24:59,120 Speaker 1: six so one exactly alright, So it hasn't sold yet, 451 00:24:59,119 --> 00:25:02,880 Speaker 1: it's up for sale. I' leave this uh this weekend. Uh, 452 00:25:03,119 --> 00:25:06,480 Speaker 1: there's thinking between five hundred and eight hundred pounds, so 453 00:25:06,640 --> 00:25:11,400 Speaker 1: between about sixty seven hundred and eleven thousand dollars um. 454 00:25:11,480 --> 00:25:13,280 Speaker 1: Always seems a little low to me for the first 455 00:25:13,320 --> 00:25:15,360 Speaker 1: Christmas card. I don't know. Okay, So I was I 456 00:25:15,400 --> 00:25:17,760 Speaker 1: was right in the right range you were, Yeah, the 457 00:25:17,800 --> 00:25:20,280 Speaker 1: low ball bid was that was smart. I was expecting 458 00:25:20,280 --> 00:25:22,520 Speaker 1: a six figure bid from you, Sarah. So it's good. 459 00:25:22,680 --> 00:25:25,440 Speaker 1: Good to see you've got a little price discipline and you. Uh, 460 00:25:25,920 --> 00:25:28,840 Speaker 1: I've learned to tamp down my expectation, right, even though 461 00:25:28,880 --> 00:25:32,800 Speaker 1: Sarah did just buy a Peloton so I, uh, she's 462 00:25:32,960 --> 00:25:36,000 Speaker 1: she's feeling the froth. I think she's feeling. I'm going 463 00:25:36,080 --> 00:25:39,840 Speaker 1: to say it out right from my perspective, maybe one 464 00:25:39,880 --> 00:25:43,760 Speaker 1: of my best practices of twenty twenty. Yeah, yeah, I 465 00:25:43,760 --> 00:25:47,560 Speaker 1: mean yeah, I got it on Monday and I've already 466 00:25:47,600 --> 00:25:50,879 Speaker 1: used it a couple of times. So have you gotten 467 00:25:51,440 --> 00:25:54,080 Speaker 1: have you gotten any shoutouts from the instructors? I I 468 00:25:54,119 --> 00:25:56,159 Speaker 1: feel like you're not really a pelts On rider and 469 00:25:56,280 --> 00:25:58,720 Speaker 1: sold they one of those people in the like Cris 470 00:25:58,800 --> 00:26:01,280 Speaker 1: shout you out in the middle of her. I haven't 471 00:26:01,320 --> 00:26:03,080 Speaker 1: done any of the live rides yet, but I'm planning 472 00:26:03,080 --> 00:26:05,040 Speaker 1: to on Sunday, so I'll let you know. I'll let 473 00:26:05,080 --> 00:26:08,040 Speaker 1: you know if I happen to get a shout out. Alright, alright, 474 00:26:08,160 --> 00:26:10,680 Speaker 1: interesting now, dads, And I'm not sure if they warned 475 00:26:10,680 --> 00:26:12,760 Speaker 1: you about this gimmick, But have you have you seen 476 00:26:12,760 --> 00:26:15,800 Speaker 1: anything crazy in markets this week? You can tell us about. Yeah, 477 00:26:15,960 --> 00:26:17,840 Speaker 1: you know, I think there are plenty things, you know, 478 00:26:17,880 --> 00:26:21,760 Speaker 1: one of the most amazing things that I've that I've seen, um, 479 00:26:22,000 --> 00:26:24,920 Speaker 1: you know, and of course Bitcoin has been a lot 480 00:26:24,960 --> 00:26:27,160 Speaker 1: in the news, and of course it's hitting records right 481 00:26:27,960 --> 00:26:30,680 Speaker 1: triple this year or more than that, it's twenty three 482 00:26:30,760 --> 00:26:37,679 Speaker 1: thousand UM. So recently somebody launched a crypto index fund. 483 00:26:38,040 --> 00:26:41,520 Speaker 1: You know. This is the bit Wise ten crypto index fund. 484 00:26:41,560 --> 00:26:47,320 Speaker 1: It's the so the top ten cryptocurrencies out there, uh, 485 00:26:47,359 --> 00:26:50,960 Speaker 1: you know, an index fun of that UM and so 486 00:26:51,040 --> 00:26:54,679 Speaker 1: the NYV of that per share is eighteen dollars and 487 00:26:54,760 --> 00:26:59,560 Speaker 1: fifty cents. Guess what the price per share? And these 488 00:26:59,600 --> 00:27:02,320 Speaker 1: are just you know, basically bitcoins and some other ether 489 00:27:02,480 --> 00:27:06,159 Speaker 1: and some other currencies in there, just what the price 490 00:27:06,400 --> 00:27:10,959 Speaker 1: of that uh per share is nine? I'm gonna upstand 491 00:27:11,000 --> 00:27:18,439 Speaker 1: because I because I read this. I had to, you know, 492 00:27:18,600 --> 00:27:21,680 Speaker 1: I had to. So in preparation for this, I looked 493 00:27:21,720 --> 00:27:23,720 Speaker 1: at the data and I had to call my financials 494 00:27:23,720 --> 00:27:27,480 Speaker 1: analysts last night and say, can you turn your Bloomberg 495 00:27:27,520 --> 00:27:30,800 Speaker 1: on and look at this? So if I'm not misreading this, 496 00:27:31,400 --> 00:27:34,439 Speaker 1: so you know, the n A V is eighteen fifty, 497 00:27:34,800 --> 00:27:38,320 Speaker 1: the price is nine dollars, right, so the so the 498 00:27:38,400 --> 00:27:45,200 Speaker 1: premium is about four four, meaning it's training at five x. Right, 499 00:27:45,240 --> 00:27:48,280 Speaker 1: So if you you know, if if if bitcoin and 500 00:27:48,280 --> 00:27:51,840 Speaker 1: this is mainly bitcoin, right, Bitcoin and of those ten currencies, 501 00:27:52,760 --> 00:27:55,680 Speaker 1: you know, you know, we we can we can debate 502 00:27:55,680 --> 00:27:59,080 Speaker 1: whether bitcoin is a bargain or not at but paying 503 00:27:59,560 --> 00:28:03,679 Speaker 1: over a hundred thousand for a bitcoin when it's trading 504 00:28:03,680 --> 00:28:08,640 Speaker 1: at twenty three thousand, that just seems crazy. It makes 505 00:28:08,680 --> 00:28:12,400 Speaker 1: you wonder that people investing in this index, I mean, 506 00:28:12,440 --> 00:28:15,480 Speaker 1: can they possibly know what they are doing, like what 507 00:28:15,480 --> 00:28:17,879 Speaker 1: what they are exactly buying if they're buying it at 508 00:28:17,920 --> 00:28:20,280 Speaker 1: such a premium, you know, right? I mean, doesn't you 509 00:28:20,280 --> 00:28:21,680 Speaker 1: know you can just go out there and buy the 510 00:28:21,680 --> 00:28:24,760 Speaker 1: bitcoin instead, right at at twenty three thousands, buying it 511 00:28:24,800 --> 00:28:28,960 Speaker 1: for over a hund thousand. So I think I think 512 00:28:29,000 --> 00:28:31,880 Speaker 1: part of and forgive me if I embarrassed myself here 513 00:28:31,920 --> 00:28:33,919 Speaker 1: by talking about crypto, because we all know I'm not 514 00:28:34,080 --> 00:28:37,600 Speaker 1: exactly the world's leading crypto authority, but I think the 515 00:28:37,640 --> 00:28:42,480 Speaker 1: issue is you buy some bitcoin, it's not necessarily uh 516 00:28:42,760 --> 00:28:45,120 Speaker 1: safe and secure on some exchange. We read about all 517 00:28:45,120 --> 00:28:49,040 Speaker 1: these exchange getting hacked and whatnot, and bitcoin while it's 518 00:28:49,040 --> 00:28:52,680 Speaker 1: getting looted. So I wonder part of that premium because 519 00:28:52,720 --> 00:28:56,280 Speaker 1: the Gray Scale Trust, which is an older mutual fund 520 00:28:56,320 --> 00:28:59,160 Speaker 1: that buys bitcoin, has always had a big nav premium 521 00:28:59,200 --> 00:29:01,160 Speaker 1: like that, not quite like that. I think it's you know, 522 00:29:01,360 --> 00:29:06,080 Speaker 1: like maybe sometimes, but I wonder if people are willing 523 00:29:06,120 --> 00:29:09,680 Speaker 1: to pay up for the security and knowing that someone 524 00:29:09,720 --> 00:29:12,400 Speaker 1: else is going to store this, keep it safe and 525 00:29:12,600 --> 00:29:14,680 Speaker 1: and you're not gonna wake up and and see a 526 00:29:14,760 --> 00:29:18,239 Speaker 1: zero balance someday if if the exchange you're dealing with 527 00:29:18,280 --> 00:29:21,040 Speaker 1: it had gotten hacked. My best guest, yeah, I know 528 00:29:21,120 --> 00:29:22,600 Speaker 1: that could be good. That that could be that could 529 00:29:22,600 --> 00:29:24,840 Speaker 1: be right, you know, Or if you stored the information 530 00:29:24,880 --> 00:29:27,440 Speaker 1: on your hard drive and and your girlfriend threw it 531 00:29:27,480 --> 00:29:31,280 Speaker 1: away and you've got to go into the garbage looking 532 00:29:31,320 --> 00:29:33,160 Speaker 1: for the hard drive. But I think part of it, 533 00:29:33,200 --> 00:29:35,240 Speaker 1: maybe it's just that there's people out there are comfortably 534 00:29:35,240 --> 00:29:39,280 Speaker 1: investing in equities. This is an equity, yeah right, and 535 00:29:39,320 --> 00:29:41,440 Speaker 1: so it's just easier. You can go onto your brokerage 536 00:29:41,440 --> 00:29:43,640 Speaker 1: account and buy it easily. You don't have to buy 537 00:29:43,680 --> 00:29:44,959 Speaker 1: you know, you don't have to set up a separate 538 00:29:45,480 --> 00:29:48,760 Speaker 1: of crypto account. Uh. That might be part of it, 539 00:29:49,480 --> 00:29:55,560 Speaker 1: but you know, but paying five x just seems absolutely extreme, 540 00:29:56,880 --> 00:29:59,760 Speaker 1: right and also also in a crypto and I guess 541 00:29:59,800 --> 00:30:03,280 Speaker 1: I PO news coin Base has now filed confidentially to 542 00:30:03,280 --> 00:30:07,640 Speaker 1: go public. So we're just going to ride the crypto train. 543 00:30:08,440 --> 00:30:11,560 Speaker 1: Oh that that I p O is gonna I won't 544 00:30:11,560 --> 00:30:14,320 Speaker 1: make any predictions, but boy, that'll be an interesting IPO. 545 00:30:15,000 --> 00:30:17,520 Speaker 1: We'll see. Well anyway, maybe Sarah, maybe if there are 546 00:30:17,560 --> 00:30:19,000 Speaker 1: some crypto expert I know we have a lot of 547 00:30:19,040 --> 00:30:21,560 Speaker 1: crypto experts who listened to us, even though we don't 548 00:30:21,560 --> 00:30:24,040 Speaker 1: give them a lot of a lot of content. But 549 00:30:24,080 --> 00:30:26,560 Speaker 1: if anyone has any other ideas on why that fund 550 00:30:26,600 --> 00:30:29,080 Speaker 1: is trading at such a premium, by all means, give 551 00:30:29,120 --> 00:30:32,320 Speaker 1: our hotline a call and let us know. Please do please, 552 00:30:32,360 --> 00:30:34,440 Speaker 1: do uh and unfortunately we are going to have to 553 00:30:34,480 --> 00:30:36,920 Speaker 1: leave it there, but Danton goee. Thank you so much 554 00:30:36,920 --> 00:30:39,160 Speaker 1: for joining the show this week. Mike, Sarah, it was 555 00:30:39,200 --> 00:30:50,360 Speaker 1: a pleasure. Thank you so much for having me What 556 00:30:50,520 --> 00:30:53,720 Speaker 1: Goes Up. We'll be back next week. Until then, you 557 00:30:53,720 --> 00:30:56,400 Speaker 1: can find us on the Bloomberg Terminal website and app, 558 00:30:56,760 --> 00:30:59,640 Speaker 1: or wherever you get your podcasts. 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