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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Single best idea and what an interesting show today, really

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Speaker 2: eclectic and this massive pullback we've seen in the market.

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Speaker 2: We're down one point three percent from the peak, but

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Speaker 2: you know a little tension in the market, yields up today,

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Speaker 2: we are very strong. Some really interesting technical analysis. Paulsiana

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Speaker 2: from Bank of America with a whole set of charge

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Speaker 2: saying we are in trend for higher rates and what

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Speaker 2: that'll mean for everything we do in economics, finance, investment,

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Speaker 2: just any number of other people with Lauren Hackfelder from

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Speaker 2: Morgan Stanley was brilliant on real estate away from the

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Speaker 2: commercial tobacco. We're all living coast to coast, but just

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Speaker 2: an interesting bond and equity bifurcation today. Amanda Lineum was

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Speaker 2: in from Blackrock. We talked to Amanda Lineum about what

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Speaker 2: the FED optionality is there in a quiet period and

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Speaker 2: what yields up the two year and year five percent.

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Speaker 2: What are the options that the FED has.

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Speaker 3: There's not really a sense of urgency for the Fed

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Speaker 3: to normalize policy, and even when they do, it's likely

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Speaker 3: to be a shallow cutting cycle. So for corporate credit,

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Speaker 3: that means we shouldn't be banking on significant near term

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Speaker 3: interest rate relief. I think the tail risk that we're watching,

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Speaker 3: and the longer that rate cuts get delayed, I think

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Speaker 3: lends more credence to this possibility is that of a

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Speaker 3: rate hike. And rate hike would not be negative for

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Speaker 3: credit because of the incremental twenty five or fifty basis

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Speaker 3: points mathematically, it would be more negative for credit because

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Speaker 3: of the uncertainty that it would interject related to the

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Speaker 3: forward path of monetary policy. That's not a great backdrop

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Speaker 3: for credit. That's not a great backdrop for deal making,

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Speaker 3: specifically kind of sponsor related m and a. And so

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Speaker 3: that's what we're watching for. It's not our base case,

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Speaker 3: but it's a concern and that's really the risk.

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Speaker 2: Amanda Line there with Black Rock anchor this morning. Thank

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Speaker 2: you to all of you out on YouTube. We had

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Speaker 2: some audio problems this morning. That happens, and one of

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Speaker 2: our interns from Villanova figured it out, which is great.

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Speaker 2: I mean, it's just you know, that's what they're here for.

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Speaker 2: It was like one single button in the control room.

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Speaker 2: And thanks to Ken Felly or our global technical director,

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Speaker 2: for getting us through that part of the debate. Air

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Speaker 2: courses on the equity market and video to the Moon.

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Speaker 2: We did a real interesting almost vamp I call him

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Speaker 2: just you know, a little quick thing on Abercrombie and Fitch.

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Speaker 2: I had no idea that turnaround that fran Horowitz has done,

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Speaker 2: and Abercrime and Fits were efforting her. We'll try to

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Speaker 2: get her on, particularly if we can get her on

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Speaker 2: in studio in New York City. But Abercrime and Fitch

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Speaker 2: of New Albany, Ohio, it looks like a meme stock.

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Speaker 2: It's like think of the idiocy stocks out there. Forget

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Speaker 2: about in video, which is almost well contained. But when

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Speaker 2: I say moonshot, A and F is a moonshot. We

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Speaker 2: had some really interesting perspective. And I thank you Lisa

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Speaker 2: Matteo for a kid's perspective. I've her kids come home

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Speaker 2: with bags, bags, I say, of A and F shorts

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Speaker 2: and other stuff. What an honor today to have on

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Speaker 2: Jim Glassman, they're two Jim Glassman. He gets confusing Jim

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Speaker 2: Glassman and JP Morgan. And this is James K. Glassman,

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Speaker 2: who with Kevin Hassett twenty four years ago wrote a

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Speaker 2: book called Dow thirty six thousand and everybody liked to

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Speaker 2: say to them, well, you were wrong because there were

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Speaker 2: three once in a lifetime events in the way, including

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Speaker 2: the Great Financial Crisis of two thousand and seven. But really,

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Speaker 2: since then two thousand and nine has been somewhat of

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Speaker 2: a lift to the markets, getting out through thirty six

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Speaker 2: thousand and now up to forty thousand on the Dow.

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Speaker 2: And he had great perspective here on the Dow. But

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Speaker 2: should you measure your index with the Dow.

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Speaker 1: Dow's got lots of problems. It's a price weighted index,

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Speaker 1: but it's still has been pretty much. It pretty much

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Speaker 1: tracked the SMP during the time when they both existed.

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Speaker 1: But I said, hey, we need an update. I mean,

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Speaker 1: one of the poems with the Dow is it can't

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Speaker 1: it can't sustain high priced, high priced stocks. You know

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Speaker 1: you can't. You can't have Tesla and the Dow. You

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Speaker 1: can't have a company like NVR, which I think is

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Speaker 1: a great company in the Dow. You can't have Chipotle

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Speaker 1: in the Dow. They would really distort it way too much.

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Speaker 1: So I did an asset weighted index just kind of

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Speaker 1: for fun, which I call Top thirty, about third of

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Speaker 1: the stocks or Dow stocks and some of them are

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Speaker 1: from the old Wired index if you remember that one,

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Speaker 1: and then I added some of my own. Actually, it's

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Speaker 1: done pretty well. I mean it was up thirty three

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Speaker 1: percent versus sixteen for the Dow. I think the Dow

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Speaker 1: has some real problems right now, no doubt about it,

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Speaker 1: and they're almost insoluble.

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Speaker 2: The author of Dow thirty six thousand, James K. Glassman,

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Speaker 2: on the path for to be very optimistic about the

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Speaker 2: many years ahead. We're on Apple, car Play and Android,

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Speaker 2: on YouTube search Bloomberg Podcasts. Subscribe to Bloomberg Podcasts, and

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Speaker 2: one of the reasons is a wide set of economic

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Speaker 2: data over the next two days. I really think it's

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Speaker 2: been underplayed. Four day work week, Memorial Day weekend and

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Speaker 2: all that. But whoa is there a lot of economic

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Speaker 2: data to reset on to get to say Friday at

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Speaker 2: ten am. It's going to be interesting to see. We'll

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Speaker 2: have full coverage. Michael McKee leading our coverage there on

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Speaker 2: the PC deflator. I'm looking at personal spending. I think

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Speaker 2: will be fascinating to see many other indicators as well. Again,

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Speaker 2: we're on YouTube. Thank you for your attention there the

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Speaker 2: live chat and for choosing to subscribe to Bloomberg Podcasts

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Speaker 2: on Apple Podcasts. This is single best idea seven