WEBVTT - A Look Ahead To Monterey Car Week 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.600 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.600 --> 0:00:18.439 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:21.800 at Bloomberg dot com slash podcast. I want to get 0:00:21.920 --> 0:00:24.960 right over to Dave Major's. He is chief executive officer 0:00:25.160 --> 0:00:29.320 Mikam Auctions, and they've got uh uh, the Micham Montgomery 0:00:29.440 --> 0:00:33.800 Auction coming up August twelve through in what is now 0:00:33.840 --> 0:00:37.120 a record setting collector car market. Dave, thanks so much 0:00:37.159 --> 0:00:41.159 for joining us. Greg Jarrett had a nineteen fifty seven 0:00:41.320 --> 0:00:45.640 MG a hardtop racing coupe and blew out the freeze 0:00:45.640 --> 0:00:48.040 plugs one morning doing a hundred forty miles per hour 0:00:48.200 --> 0:00:52.000 when he saw a cop suddenly let off changing compression 0:00:52.000 --> 0:00:53.920 blow them all out. Can we find him another one? 0:00:54.800 --> 0:00:56.960 I'm sure that we probably can do that. We don't 0:00:57.120 --> 0:00:59.120 I don't think we have one in the Monterey lineup. 0:00:59.280 --> 0:01:02.680 We certainly have a lot of interesting replacements if he, 0:01:03.000 --> 0:01:06.840 if he so chooses, So let's let's talk about some 0:01:06.920 --> 0:01:09.120 of that lineup. What do you think is the hottest 0:01:09.200 --> 0:01:11.080 car that's going to be auctioned off in a couple 0:01:11.080 --> 0:01:14.040 of days here. Well, you know, Monterey is always a 0:01:14.040 --> 0:01:16.800 pretty unique event for us, and it's uh, this will 0:01:16.840 --> 0:01:19.480 be our seventeenth events since we went back to auction 0:01:19.520 --> 0:01:23.320 in in June. We've seen a lot of beautiful cars, 0:01:23.360 --> 0:01:26.560 but I don't think I've seen a collection like I 0:01:26.680 --> 0:01:29.800 have coming up Monterrey for the next three days Thursday, 0:01:29.800 --> 0:01:32.960 Friday Saturday next week. And there's it's such an eclectic mix. 0:01:33.400 --> 0:01:35.880 It's kind of one of those that whatever you're looking for, 0:01:35.920 --> 0:01:39.080 there's you know, just in my mind the cars that 0:01:39.120 --> 0:01:41.679 I look at that will be there. There's a nineteen 0:01:41.720 --> 0:01:45.839 twenty nine Dusenberg Model J which is and it's a convertible, 0:01:45.959 --> 0:01:48.720 which makes it very unique. And those you know, everybody 0:01:48.720 --> 0:01:52.160 knows dus and Birds were spectacular vehicles to begin with. 0:01:52.320 --> 0:01:54.480 They were in their day back in the nineteen twenties 0:01:54.480 --> 0:01:57.920 and thirties, and and they still are today. But then 0:01:57.920 --> 0:02:00.800 there's a couple of other, um, what I think are 0:02:01.080 --> 0:02:03.440 going to be very interesting cars. In the eighteen fifty 0:02:03.440 --> 0:02:08.240 two Ferrari three forty that raced a Lama too. Yeah, 0:02:08.280 --> 0:02:11.560 the blue Car race to a fifth place finish. Um, 0:02:11.600 --> 0:02:13.440 you know again, kind of a one of one car. 0:02:13.560 --> 0:02:16.119 That's I think it's going to attract a lot of attention. 0:02:16.840 --> 0:02:19.080 And my personal favorite, if you've seen any of the 0:02:19.120 --> 0:02:21.720 pictures online at at mecom dot com, is the thirty 0:02:21.760 --> 0:02:25.760 six Delahy Type one thirty five tier drop. If you're 0:02:25.760 --> 0:02:29.200 familiar with Dela Hayes, uh, they Delahayes to me are 0:02:29.280 --> 0:02:33.960 the epitome of art beauty. That's like the Ralph Lauren car, right, 0:02:34.120 --> 0:02:37.919 Ralph Laurens exactly. There's just absolutely every one of them, 0:02:37.919 --> 0:02:40.519 regardless of what model or yeared is. Every one of 0:02:40.520 --> 0:02:42.760 the Dela Hayes is absolutely beautiful. And I think this 0:02:42.880 --> 0:02:45.320 is this is probably the best one I've seen in 0:02:45.720 --> 0:02:48.280 my career. So I'm I'm just excited to get to 0:02:48.320 --> 0:02:50.920 Monterey and get out on Delmonte Golf Course and see 0:02:51.000 --> 0:02:54.520 six hundred beautiful cars and and get get things underway. 0:02:54.720 --> 0:02:57.840 I love the Ferraris. The three forty is amazing. You've 0:02:57.840 --> 0:03:01.880 got a seventy two UM three sixty five Daytona that 0:03:02.000 --> 0:03:07.360 looks quite cool at sixty five super fast UM which 0:03:07.600 --> 0:03:10.480 which Kayley and I both love, but we're more into muscle. 0:03:10.560 --> 0:03:14.480 You know. Kaylee's dad has a G t O. Yeah, 0:03:14.520 --> 0:03:17.440 and oh yeah, God blas him. I'm looking at, you know, 0:03:17.480 --> 0:03:21.000 the riviera. I like, big Al has a riviera. He's 0:03:21.040 --> 0:03:24.520 got a sixty eight in polya convertible. Um that that 0:03:24.600 --> 0:03:27.120 looks really nice. Who is big Al? I'm looking at 0:03:27.160 --> 0:03:30.480 big Al's collection. He's got a lot of cars for sale. Yeah. 0:03:30.560 --> 0:03:33.600 Actually I can't disclose that. I can tell you he 0:03:33.760 --> 0:03:37.800 is from the Northwest, I see, and that's about us. 0:03:37.880 --> 0:03:40.200 That's about as far as I can say. That's that's 0:03:40.200 --> 0:03:43.680 why it's listed as the big Al collection. Well he's 0:03:43.680 --> 0:03:46.800 got even though that's a pretty eclectic group of cars too, 0:03:46.800 --> 0:03:48.680 because I think it, you know, as you mentioned, like 0:03:48.720 --> 0:03:51.840 a riviera, but there's a law ferrari. Yes, so it's 0:03:52.120 --> 0:03:54.480 you know, that's that's kind of one extreme to the other. 0:03:54.640 --> 0:03:57.440 But well, for me, a riviera means you've got taste, 0:03:57.480 --> 0:04:00.360 and a law ferrari means you have money. So we 0:04:00.440 --> 0:04:04.080 just we just came from from our auction in Orlando, 0:04:04.120 --> 0:04:06.840 Florida last weekend, and there was a collection of I 0:04:06.960 --> 0:04:11.160 believe thirteen rivieras in that in that auction from one 0:04:11.200 --> 0:04:15.240 collector and all of them meticulously restored, beautiful cars. So 0:04:15.280 --> 0:04:18.000 how much are these going for him? I remember um 0:04:18.200 --> 0:04:23.360 watching mikam auctions one morning, probably a decade ago, and 0:04:23.920 --> 0:04:26.800 UM seeing a Barracuda go for like three point four 0:04:26.839 --> 0:04:31.120 million bucks, and I was like, oh my god, unbelievable. 0:04:31.279 --> 0:04:34.720 So so so what are we talking about for American 0:04:34.800 --> 0:04:37.040 muscle It just seems amazing to me to see them 0:04:37.040 --> 0:04:41.080 going for ferrari prices. Yeah, you know, it really depends 0:04:41.440 --> 0:04:44.640 um and and certain models are hot at certain periods 0:04:44.680 --> 0:04:48.719 of time. Corvettes are particularly hot right now. Depends on 0:04:48.760 --> 0:04:51.560 the model, depends on the make, depends on the restoration. 0:04:51.640 --> 0:04:54.640 But American muscle cars, you know, there are those that 0:04:55.000 --> 0:04:57.479 you know, I might call beginner cars that from the 0:04:57.600 --> 0:05:00.320 sixties and seventies that you know, you I be able 0:05:00.360 --> 0:05:03.800 to get into for twenty dollars or less. And then 0:05:03.839 --> 0:05:06.160 there are some that are in the millions of dollars 0:05:06.200 --> 0:05:08.480 depending on what they are. And you know, the Hemi Kudas, 0:05:09.200 --> 0:05:14.400 the Daytona coups Um, the super Birds. Those cars attract 0:05:14.440 --> 0:05:17.200 a lot of attention and obviously attract a lot of 0:05:17.240 --> 0:05:19.599 dollars as well. You know, here in New York the 0:05:19.640 --> 0:05:22.480 Auto Show they just canceled yesterday because of concerns around 0:05:22.480 --> 0:05:24.680 the delta variant. Do you expect any disruptions not just 0:05:24.720 --> 0:05:27.920 at Monterey but in your events and auctions throughout the fall, Well, 0:05:27.960 --> 0:05:31.640 that just means more bitters online. Well, we, as I said, 0:05:31.680 --> 0:05:36.600 we came back to live auctions in June with a 0:05:36.600 --> 0:05:40.960 revised eleven page safety protocol and a completely different business 0:05:40.960 --> 0:05:44.520 model for for live auction events for live attended events, 0:05:45.320 --> 0:05:50.240 and we we've become very good at executing on that model. 0:05:50.320 --> 0:05:54.080 So we're prepared as Mikam Auctions, as we have been 0:05:54.320 --> 0:05:57.279 for the last sixteen months, to to take whatever comes 0:05:57.279 --> 0:05:59.960 our way. But we do see because of the delta 0:06:00.120 --> 0:06:03.839 variant um going back, for instance, to the Orlando auction 0:06:03.960 --> 0:06:06.719 last weekend, in the middle of that auction, the Mayor 0:06:06.760 --> 0:06:09.680 of Orlando issued an indoor mass order, so we were 0:06:09.680 --> 0:06:13.120 ready to comply with that. I don't think since Monterey 0:06:13.160 --> 0:06:15.680 is an outdoor auction on the golf course, I'm not 0:06:15.760 --> 0:06:18.960 really expecting much to change between now and then, But 0:06:19.080 --> 0:06:21.240 certainly as we look forward to the rest of our 0:06:23.000 --> 0:06:26.560 schedule and even into two with places like Dallas and 0:06:26.720 --> 0:06:29.880 Chicago and Las Vegas. I think we're probably going to 0:06:29.920 --> 0:06:33.560 see a little tightening of the of the restrictions. All right, Dave, 0:06:33.600 --> 0:06:35.400 thanks so much for joining us. Always a pleasure to 0:06:35.440 --> 0:06:39.320 talk to. Dave Major, chief executive at Mikam Auctions on Monterey. 0:06:39.400 --> 0:06:44.640 Coming up, let's get over to Nick Freeling Highs and 0:06:44.720 --> 0:06:47.240 right now bring it back to markets. He's managing director 0:06:47.240 --> 0:06:50.120 at Shelton Trust. He's a portfolio manager of equities there 0:06:50.240 --> 0:06:53.200 and Nick, you know, we we were talking with Brent 0:06:53.279 --> 0:06:55.839 Shooty a little bit earlier, and he was pretty bullish 0:06:56.360 --> 0:07:02.039 on UM, on the cyclical and also on you know, 0:07:02.160 --> 0:07:05.880 smaller cap stocks as well as European equities, saying that 0:07:05.920 --> 0:07:07.240 he thinks some of the money is going to come 0:07:07.279 --> 0:07:10.920 back in from the bond market and from these super 0:07:10.960 --> 0:07:14.520 growthy mega tech megacap tech stocks. What do you think 0:07:14.520 --> 0:07:18.440 about that? Yeah, I mean I think that's first of all, 0:07:18.440 --> 0:07:19.840 it's nice to be with you guys today, and thanks 0:07:19.880 --> 0:07:22.080 for having me on UM. You know, I think that 0:07:22.200 --> 0:07:25.559 that's perfectly possible if in fact we get a sharp 0:07:25.640 --> 0:07:28.880 move higher and raps um, because I think that sort 0:07:28.920 --> 0:07:32.960 of growth quarter to date has basically been dominating value 0:07:33.040 --> 0:07:35.600 right by about three fifty basis points because I think 0:07:36.080 --> 0:07:39.400 the concern more recently is sort of peak Garnians growth, 0:07:39.400 --> 0:07:43.040 peak GDP growth peak, you know, easy bet, easy money policies, 0:07:43.520 --> 0:07:45.200 and I think there has been sort of a return 0:07:45.280 --> 0:07:48.880 to a focus on quality and sort of durable growth, 0:07:49.360 --> 0:07:52.760 which is actually as a sort of a investment philosophy 0:07:52.760 --> 0:07:55.240 is where children trust sort of focuses. But I think 0:07:55.280 --> 0:07:58.840 that's perfectly possible. I mean, look, we're we're reasonably constructive 0:07:59.360 --> 0:08:02.400 broadly in stocks, and you know, we have a lot 0:08:02.440 --> 0:08:04.760 of clients asked as constantly sort are we in an 0:08:04.800 --> 0:08:08.200 equity bubble? And um, I just think that, you know, 0:08:08.240 --> 0:08:12.080 the liquidity backdrop here is it's really pretty extraordinary. It's 0:08:12.080 --> 0:08:14.520 it's unlike you know, anything we've seen in a long time. 0:08:14.600 --> 0:08:17.840 You've got corporate balance sheet sitting on over to trillion, 0:08:17.880 --> 0:08:20.920 you've got consumer sitting on three trillion and nextss savings. 0:08:21.640 --> 0:08:24.000 And then this morning the Journal found it interesting to 0:08:24.040 --> 0:08:26.440 note that both JP Morgan and Bank America are talking 0:08:26.440 --> 0:08:29.960 about sitting on one trillion and unused corporate credit. So, 0:08:30.520 --> 0:08:33.280 I mean, I think that all bodes quite well for 0:08:33.480 --> 0:08:36.559 people buying pullbacks in this market, but also for a 0:08:36.600 --> 0:08:39.280 sort of an imminent capex cycle that could be coming. 0:08:40.080 --> 0:08:42.840 So obviously there's a lot of money splashing around in 0:08:42.920 --> 0:08:46.280 the system. Where do you think that money is going 0:08:46.360 --> 0:08:49.240 to be going Not just obviously equities broadly is what 0:08:49.280 --> 0:08:51.360 you think. But but where in the equity market do 0:08:51.360 --> 0:08:52.959 you think is going to see the like the highest 0:08:53.160 --> 0:08:58.040 returns going forward? Yeah, I mean, our focus really is 0:08:58.080 --> 0:09:01.160 on durable growth and we like to owned businesses where 0:09:01.640 --> 0:09:05.319 we don't feel like we need to rely upon sick lotality. UM. 0:09:05.440 --> 0:09:09.000 So you know, I think that, um, it'll really sort 0:09:09.040 --> 0:09:12.200 of depend on sort of the inflationary picture going into 0:09:12.280 --> 0:09:13.920 next year. We sort of have a view that what 0:09:13.960 --> 0:09:16.720 we're seeing currently in in inflation isn't sort of something 0:09:16.720 --> 0:09:19.559 that's structural and going to be persistent. We actually think 0:09:19.559 --> 0:09:22.920 a lot of the inflation is concentrated in sort of 0:09:22.920 --> 0:09:26.160 a select group of goods. And I think if if 0:09:26.200 --> 0:09:30.000 growth slows into two thousand twenty two, I think people 0:09:30.000 --> 0:09:32.400 are actually going to return to a focus on quality 0:09:32.400 --> 0:09:35.440 and growth. Um. And that's really sort of where our 0:09:35.480 --> 0:09:37.640 bread and butter is and where we focus our investments 0:09:37.640 --> 0:09:41.000 as a firm. What are you expecting in terms of 0:09:41.040 --> 0:09:44.120 the jobs number on Friday and and really in terms 0:09:44.200 --> 0:09:47.960 of jobs coming back throughout the rest of the year. 0:09:49.679 --> 0:09:51.280 I mean, I think the print is sort of the 0:09:51.280 --> 0:09:55.520 expectation as anything short of a million would be a disappointment. UM, 0:09:55.679 --> 0:09:57.600 but you know, I think the return of labor is 0:09:57.600 --> 0:10:00.560 a critical component, uh, to sort of putting some of 0:10:00.559 --> 0:10:03.880 the inflation fears to rest, because I feel like UM 0:10:03.920 --> 0:10:06.640 as a firm, we're sort of focused on this issue 0:10:06.679 --> 0:10:10.720 that you know, consumers really never went through a recession 0:10:10.760 --> 0:10:13.439 in two thousand and twenty. The sort of extraordinary thing 0:10:13.440 --> 0:10:17.160 about it was, you know, disposable personal income was actually 0:10:17.200 --> 0:10:19.720 up six percent, but then on the other side you 0:10:19.800 --> 0:10:23.240 had sort of massive supply chain bottlenecks that were a 0:10:23.280 --> 0:10:27.520 result of manufacturing and production really ramping down. Thinking that 0:10:27.559 --> 0:10:29.440 it would be several years before we got back to 0:10:29.480 --> 0:10:33.600 two thousand nineteen levels. Really, you know, the hope is 0:10:34.040 --> 0:10:35.720 that we're going to see a lot of job growth, 0:10:35.920 --> 0:10:39.680 you know, particularly in things like manufacturing and logistics, UM, 0:10:39.800 --> 0:10:42.280 but as well in things like food service and what 0:10:42.440 --> 0:10:45.160 hospitality and leisure, because I think that's a critical component 0:10:45.800 --> 0:10:47.800 of sort of quieting this issue that we have with 0:10:47.880 --> 0:10:52.280 sort of you know, inflation and availability of labor. Yeah, 0:10:52.280 --> 0:10:54.080 so we know, the FED is watching the labor market 0:10:54.120 --> 0:10:56.080 story and the inflation side of the story. And even 0:10:56.120 --> 0:10:59.600 if inflation is transitory, a lot of companies are raising 0:10:59.640 --> 0:11:01.640 prices is their face with higher input costs and they're 0:11:01.640 --> 0:11:03.800 passing that right onto the consumer. Do you expect that 0:11:03.840 --> 0:11:07.720 to remain the case in margins to hold in. Yeah, 0:11:07.720 --> 0:11:10.440 So that's the big concern in the second quarter. I mean, look, 0:11:10.559 --> 0:11:13.360 the second quarter earnings, corporate earnings have been fantastic. If 0:11:13.360 --> 0:11:15.320 we are assigning classroom grades, I think it would be 0:11:15.320 --> 0:11:19.160 a straight a. The concern is the ability to pass 0:11:19.240 --> 0:11:23.000 on input costs inflation. So you know you're seeing sort 0:11:23.000 --> 0:11:26.400 of in a in a case like floor rox this week, 0:11:26.440 --> 0:11:29.600 you're seeing sort of that becoming a very big issue. 0:11:30.040 --> 0:11:32.199 I would sort of contract that with you know, one 0:11:32.200 --> 0:11:36.720 of our largest holdings of Sherwin Williams, where of their 0:11:36.800 --> 0:11:39.199 of their costs of good sould is impacted by the 0:11:39.320 --> 0:11:42.480 moodity inflation. Well they passed about seven ten to eleven 0:11:42.840 --> 0:11:45.880 of that on in price because they can without an 0:11:45.880 --> 0:11:49.640 impact on demand. So I think if you're investing, it's 0:11:49.640 --> 0:11:52.440 critical to sort of be focused on on businesses that 0:11:52.559 --> 0:11:55.800 have pricing power that can raise prices without a big 0:11:55.880 --> 0:11:59.160 impact in terms of elasticity of demand. UM. But I 0:11:59.200 --> 0:12:00.840 think look in the sex in half of this year, 0:12:01.320 --> 0:12:04.520 comparisons are going to become more challenging. And I think 0:12:04.679 --> 0:12:07.440 for the next three to four months the CPI readings 0:12:07.440 --> 0:12:09.280 are going to be hot. So this is an issue 0:12:09.800 --> 0:12:11.480 that will continue to be with us, and I think 0:12:11.480 --> 0:12:13.640 the bestor is going to be focused on it. Nick. 0:12:13.720 --> 0:12:16.240 Great to get some time with you. Really appreciate your insights. 0:12:16.320 --> 0:12:18.880 Nick frielinghis in there is a managing director at Child 0:12:18.920 --> 0:12:22.280 and Trust, where he's also a portfolio manager of equities. 0:12:24.600 --> 0:12:29.720 Now we've been getting increasing headlines about the delay to 0:12:30.440 --> 0:12:32.880 the return to work. Janet Elkin joins us right now, President, 0:12:32.920 --> 0:12:37.160 chief executive officer Icon Medical Network out of Dallas, Texas. 0:12:37.200 --> 0:12:42.200 And Janet, is this getting worse? You know? As we speak, 0:12:42.440 --> 0:12:46.360 it seemed like, for example, for vaccinated people, UM, this 0:12:46.520 --> 0:12:49.880 pandemic was kind of over. But now a lot more 0:12:49.920 --> 0:12:55.640 breakthrough cases are scaring employers. There are, and of course 0:12:55.800 --> 0:12:59.640 although in most cases breakthrough cases are not are not 0:12:59.760 --> 0:13:04.240 here if they're not going to send anyone to the hospital. Still, overall, 0:13:04.440 --> 0:13:06.720 we've got a lot more people that are getting sick 0:13:06.800 --> 0:13:11.440 that are unvaccinated and the hesitancy is obviously causing issues. 0:13:11.480 --> 0:13:14.040 And then people are also concerned I think about going 0:13:14.080 --> 0:13:17.160 back to the office if they have younger children at 0:13:17.200 --> 0:13:19.680 home as well. So let's talk about what the environment 0:13:19.720 --> 0:13:22.280 is like in hospitals. I saw a story earlier this 0:13:22.320 --> 0:13:25.040 week about the rising number of hospitals in Florida where 0:13:25.280 --> 0:13:28.439 they're having serious staffing shortages. Something like thirteen percent of 0:13:28.480 --> 0:13:32.320 facilities say they are short on vital personnel. Um is 0:13:32.360 --> 0:13:35.040 this a situation that's going to get worse in terms 0:13:35.040 --> 0:13:37.240 of the people who are caring for those who are sick. 0:13:38.320 --> 0:13:41.320 I am concerned about it. You've got, as we also 0:13:41.520 --> 0:13:44.720 burn out, right, so many different kinds of healthcare workers 0:13:44.720 --> 0:13:48.400 that either took early retirement or just left because the 0:13:48.440 --> 0:13:50.880 burden was too difficult for them, I think emotionally as 0:13:50.880 --> 0:13:54.400 well as physically. But also realize that you've got so 0:13:54.440 --> 0:13:58.560 many more patients. They're coming back in for things like 0:13:58.600 --> 0:14:02.000 collective surgeries, so it would have been a busy time anyway, 0:14:02.040 --> 0:14:05.400 people that postpone things, and then also the long callers, 0:14:05.400 --> 0:14:07.760 So you've got all that going on along with the 0:14:07.840 --> 0:14:11.480 rose the delta variant, and it's sadly a perfect dorm. 0:14:11.520 --> 0:14:15.679 How much do we know about long haul covid um 0:14:15.720 --> 0:14:19.760 It seems like one of those real concerns like chronic 0:14:19.880 --> 0:14:23.680 lime disease that's just so hard to put your finger on. Well, 0:14:23.720 --> 0:14:25.880 you're right, and and actually we don't there's a lot 0:14:25.960 --> 0:14:28.160 we don't know, right. But I will tell you this 0:14:28.440 --> 0:14:32.040 that the rise in demand that we've had for say, 0:14:32.240 --> 0:14:37.400 pulmonary physicians or cardiology because of what we're seeing in 0:14:37.480 --> 0:14:41.480 some patients with heart and lung is really causing that 0:14:41.560 --> 0:14:44.000 kind of increase in demand um for us to be 0:14:44.040 --> 0:14:47.600 able to provide physicians. Can we talk about we don't 0:14:47.600 --> 0:14:51.200 know yet. Yeah, there's the return to office on on 0:14:51.200 --> 0:14:53.440 one hand, and then there's what people have to do 0:14:53.520 --> 0:14:55.320 in order to return the office. And a lot of 0:14:55.320 --> 0:14:58.960 companies are mandating that their employees must be vaccinated in 0:14:59.040 --> 0:15:01.160 order to do so. And we've seen mandates like that 0:15:01.200 --> 0:15:03.120 put in for health care workers as well here in 0:15:03.160 --> 0:15:05.960 New York State, where Matt and I are frontline medical 0:15:05.960 --> 0:15:08.320 workers that work for state hospitals have to do that. 0:15:08.840 --> 0:15:13.240 Is that the right policy? Well, I think it's a 0:15:13.320 --> 0:15:16.200 question of do you want people to be safe and 0:15:16.240 --> 0:15:19.240 what can we do to mitigate this? And so if 0:15:19.280 --> 0:15:22.720 you've got the idea of healthcare workers, the people that 0:15:22.760 --> 0:15:26.080 are there to protect and take care of patients, if 0:15:26.120 --> 0:15:28.560 they have it, then it's a situation that you think, 0:15:28.560 --> 0:15:30.240 how are we ever going to get out of this? 0:15:30.480 --> 0:15:33.080 And I think that I think in most cases, the 0:15:33.080 --> 0:15:35.840 majority of the healthcare workers that we deal with they 0:15:35.960 --> 0:15:39.040 understand that. But you're right, it's accelerating across the country. 0:15:39.160 --> 0:15:43.400 Literally every day, I'm getting more emails from clients to say, 0:15:43.440 --> 0:15:47.400 all right now we're making a mandatory. Your physicians cannot 0:15:47.480 --> 0:15:50.479 your nurses cannot come back to work unless they're vaccinated. 0:15:50.800 --> 0:15:53.920 By the way, Janet, is I uh notice a resident 0:15:54.040 --> 0:15:57.760 of uh sorry, a native of New York City, Right, 0:15:57.800 --> 0:16:00.880 you're an Orange Man, and but you live in Dallas. 0:16:00.960 --> 0:16:03.560 So I wonder if you're struck by you know, here 0:16:03.560 --> 0:16:07.320 in New York everyone is vaccinated and no one's really 0:16:07.360 --> 0:16:10.840 fighting back against it or or hesitant. And I would 0:16:10.920 --> 0:16:14.560 gather that in states like Florida and Texas, um, you 0:16:14.600 --> 0:16:18.440 have a lot more hesitancy. It's really incredible. On a 0:16:18.480 --> 0:16:21.320 personal note, my dad, who was a New York resident, 0:16:21.400 --> 0:16:22.880 died of the virus, and he would have been the 0:16:22.880 --> 0:16:26.440 first in line had they had the vaccine um that 0:16:26.560 --> 0:16:29.400 early on. But yes, In fact, it's interesting because two 0:16:29.400 --> 0:16:31.880 of the three largest healthcare systems in the Dallas for 0:16:31.920 --> 0:16:35.600 Warth area have put in mandatory vaccine requirements. The other one, 0:16:35.640 --> 0:16:39.440 you too, Southwestern can't. Why can't they because the governor 0:16:39.440 --> 0:16:42.360 of Overset state has said you cannot mandate it, and 0:16:42.400 --> 0:16:45.720 they are a public entity. So it's interesting times here 0:16:45.840 --> 0:16:48.680 on the governor of Florida has refused to declare a 0:16:48.720 --> 0:16:52.280 state of emergency, and as a result, they're having difficulty 0:16:52.320 --> 0:16:57.080 getting oxygen to the right places. There is enough oxygen there, 0:16:57.120 --> 0:17:00.840 they just don't have the licensed drivers who are equipped 0:17:00.880 --> 0:17:04.720 to carry oxygen. And uh, do you think that we 0:17:04.800 --> 0:17:09.880 need more federal action here, Janet? I think we're going 0:17:09.920 --> 0:17:11.840 to have to. I think that it's the only way 0:17:11.880 --> 0:17:15.479 because think about when heartbreaking when you talk about oxygen, right, 0:17:15.720 --> 0:17:19.720 but imagine in especially in rural areas where hospitals have 0:17:19.800 --> 0:17:22.000 closed to begin with, it could take someone forty minutes 0:17:22.040 --> 0:17:24.600 to drive to a hospital. You've got to be able 0:17:24.640 --> 0:17:27.199 to have access for people. And I don't know if 0:17:27.240 --> 0:17:29.600 we don't have more action, what's going to be able 0:17:29.600 --> 0:17:32.159 to have. We can also hope that at the end 0:17:32.160 --> 0:17:35.080 of the month, I believe that the FDA will finally 0:17:35.680 --> 0:17:38.800 make this not emergency authorization anymore for the vaccine that 0:17:38.840 --> 0:17:42.040 may help us as well with vaccine hasidency quick. We 0:17:42.160 --> 0:17:45.040 just got twenty seconds here. Our healthcare workers paid enough 0:17:45.080 --> 0:17:47.080 in the US. I'm normally in Germany and they are 0:17:47.080 --> 0:17:52.480 definitely not there. I think in some cases, I think 0:17:52.560 --> 0:17:57.600 that we are for physicians, for nurses. Overall, in we're 0:17:57.600 --> 0:18:00.439 definitely in better shape than in some countries, but in 0:18:00.480 --> 0:18:03.920 some very high demand areas like medical assistance to still 0:18:03.960 --> 0:18:06.679 paying them not much more than minimum wage. That's going 0:18:06.760 --> 0:18:08.840 to change, has to I guess if you want to 0:18:08.880 --> 0:18:11.320 get them in in the door. Janet, thanks so much, 0:18:11.560 --> 0:18:15.360 UM for your time. Really sorry for your loss, and Um, 0:18:16.119 --> 0:18:18.760 I think we all appreciate what you're doing to help 0:18:18.800 --> 0:18:20.680 the rest of us in this pandemic. Jan Elkin is 0:18:20.760 --> 0:18:28.199 chief executive officer of Icon Medical Network. Let's get over 0:18:28.240 --> 0:18:31.000 to Brent Shooty right now. Brent overseas more than two 0:18:31.640 --> 0:18:35.080 billion dollars in retail assets, joins us on the phone 0:18:35.160 --> 0:18:39.399 from Milwaukee. And you know, before we get to the 0:18:39.480 --> 0:18:43.600 finer points of finance, you know the FED policy issues 0:18:43.800 --> 0:18:47.399 rates inflation. Et cetera. I just gotta ask about, you know, 0:18:47.520 --> 0:18:50.320 Robin Hood and Meme stocks. What's your take on all 0:18:50.400 --> 0:18:53.399 this because we saw that um, you know, disappointing I 0:18:53.440 --> 0:18:57.359 p O and then it doubled in the last two days. Yeah, 0:18:57.400 --> 0:18:59.000 I think people focus too much on it. So it's 0:18:59.040 --> 0:19:01.199 kind of interesting that it occurs. And certainly there's some 0:19:01.600 --> 0:19:04.000 retail investors who are probably piling into these things and 0:19:04.040 --> 0:19:06.840 pushing them back and forth. But hopefully from majority of 0:19:06.840 --> 0:19:09.520 people listening to this call or on your radio station, 0:19:09.800 --> 0:19:12.040 they'll focus on those finer points of finance that you 0:19:12.119 --> 0:19:13.600 mentioned before, which I think are going to drive their 0:19:13.600 --> 0:19:16.239 perfectly a longer term. So I do think at some 0:19:16.280 --> 0:19:18.560 point some of these stocks are going to come back 0:19:18.600 --> 0:19:22.120 to earth. Uh. And the question is when, probably not if, 0:19:22.800 --> 0:19:24.640 And to me, if you have too much in those 0:19:24.720 --> 0:19:27.480 you're going to probably not enjoy having that much of 0:19:27.520 --> 0:19:29.880 them at some point in the future. We probably could 0:19:29.920 --> 0:19:31.840 say a lot of that retail treading action is a 0:19:31.880 --> 0:19:35.280 bit disconnected from the fundamentals. So let's talk about some 0:19:35.320 --> 0:19:37.880 of those fundamentals when it comes to the FED. Obviously, 0:19:37.920 --> 0:19:40.360 we have the jobs report tomorrow, and I'm wondering if 0:19:40.359 --> 0:19:43.199 a strong jobs report is actually a bad thing for 0:19:43.240 --> 0:19:45.840 this market. In that may that may mean a more 0:19:45.880 --> 0:19:50.480 hawkish FED possibly, but I think, you know, maybe that'll 0:19:50.520 --> 0:19:53.040 be the reaction tomorrow initially, but I think people will 0:19:53.040 --> 0:19:54.920 get their heads and see that it actually means that 0:19:55.000 --> 0:19:57.440 stronger economic growth on the way and more wages are occurring, 0:19:57.520 --> 0:20:00.160 and the economy is pushing forward, and so that will 0:20:00.200 --> 0:20:02.200 be certainly a reaction post FED. And I suppose that 0:20:02.240 --> 0:20:04.200 if it's really strong, it could be that reaction, because 0:20:04.200 --> 0:20:06.760 it could be the more hawky FED. But in general 0:20:06.800 --> 0:20:09.440 I wouldn't trade that too much. I would think more 0:20:09.760 --> 0:20:12.439 about what that means for the intermediate term, which is 0:20:12.440 --> 0:20:15.560 stronger economic growth. Uh. And I do believe that inflation 0:20:15.600 --> 0:20:16.960 will fall back, which I think clear is one of 0:20:16.960 --> 0:20:20.720 the fears about the FED. Nonetheless, we still see rates 0:20:20.760 --> 0:20:24.080 at well the tenure at one nineteen right now. If 0:20:24.119 --> 0:20:27.000 I take a look at the real yield, as I've 0:20:27.000 --> 0:20:30.960 been doing a lot more lately, I'm looking at negative 0:20:31.240 --> 0:20:33.720 hundred and thirteen, but we worked out at negative one 0:20:33.800 --> 0:20:40.080 two yesterday. Why, um, with your degrees in finance and 0:20:40.200 --> 0:20:42.760 business and your cf A, why why do we see 0:20:43.080 --> 0:20:47.040 rates this low? Well, I mean, I think you still 0:20:47.040 --> 0:20:50.080 have central banks around the world still buying a lot 0:20:50.160 --> 0:20:52.639 of bonds, which obviously puts downward pressure on yields in 0:20:52.680 --> 0:20:54.520 many cases. I think you also have a lot of 0:20:54.520 --> 0:20:56.400 fears in the market. And so if you think about 0:20:56.400 --> 0:20:57.560 it in the way we've thought about it over the 0:20:57.560 --> 0:20:59.639 past few months, is that we got to June and 0:20:59.640 --> 0:21:01.560 we know where we're we thought we might be, and 0:21:01.720 --> 0:21:04.360 everything was pushing that direction. So COVID cases were coming down, 0:21:04.400 --> 0:21:07.080 economic growth was finally here, and then we got there 0:21:07.080 --> 0:21:09.800 and people said what's next. And so you have a 0:21:09.800 --> 0:21:11.199 cross current of fears that I think are out there. 0:21:11.200 --> 0:21:13.919 You have too much crowd who's worried about inflation and 0:21:13.920 --> 0:21:16.040 thinks that may cause the Fed to do something. You 0:21:16.119 --> 0:21:18.160 have the two little crowd who's worried about the delta 0:21:18.200 --> 0:21:20.280 Iron was worried about China rolling over, was worried about 0:21:20.280 --> 0:21:22.639