WEBVTT - Single Best Idea with Tom Keene: Craig Brandon & Wendy Schiller

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Single best idea on Apple podcasts and thank you for

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<v Speaker 2>your attention. We're moving this out on Twitter and LinkedIn.

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<v Speaker 2>Look there for you know, announcements about it. But the

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<v Speaker 2>best thing to do is subscribe to Apple podcasts. An

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<v Speaker 2>eventful day, any number of ways to go here. I

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<v Speaker 2>thought that David Gerr was outstanding on the NATO angle

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<v Speaker 2>into all this uproar about President Biden's health. Greg Valier

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<v Speaker 2>was very timely there, particularly about the convention overlay. We're

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<v Speaker 2>really coming up on the Republican convention the suire in Milwaukee,

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<v Speaker 2>I believe July fifteenth. We'll look for that and then

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<v Speaker 2>Wendy Schiller will get to in a moment. But first

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<v Speaker 2>we do economics, finance, investment, investment, investment, and like all

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<v Speaker 2>of financial media, I underplay municipal bond, which is really

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<v Speaker 2>really dumb. Municipal bonds are extremely important. You get a

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<v Speaker 2>tax advantage at the federal level, you may get a

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<v Speaker 2>tax advantage at the state level, and you get a

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<v Speaker 2>tax advantage perhaps at the city level, like New York City,

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<v Speaker 2>where we say it's triple tex free. An expert on

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<v Speaker 2>this a true legit expert is Craig Brandon. He's out

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<v Speaker 2>of Eaton Vans of Boston, who helped invent the industry.

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<v Speaker 2>James Gorman and Morgan Stanley took out eating Vance and

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<v Speaker 2>what all A claimed to be a successful transaction, bringing

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<v Speaker 2>over the intellect of people like Craig Brandon. Here, Craig Brandon,

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<v Speaker 2>I'm taking advantage of tex free bonds.

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<v Speaker 3>The way I look at fixed income the way I

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<v Speaker 3>look at Munie's. Tom, You're a hockey guy, right, So football,

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<v Speaker 3>you have your plays, right, you have your playbook and

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<v Speaker 3>you have your long your plays in Munie's. In fixed income,

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<v Speaker 3>it's it's more like being a hockey coach where things

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<v Speaker 3>change so fast. So if you're an individual investor, buy

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<v Speaker 3>and hold. We're looking at how the market changes. I

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<v Speaker 3>mean the market changes every day. Look, you know, later

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<v Speaker 3>today we have you know, the Fed chairman speaking in Congress.

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<v Speaker 3>We have CPI can coming out later this week for

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<v Speaker 3>active management. You know, the MUNI market tends to be

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<v Speaker 3>very correlated to treasuries because for the most part, it's

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<v Speaker 3>a high quality asset class with a little bit of

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<v Speaker 3>duration in it. So you know, when the treasury market moves,

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<v Speaker 3>UNI's really with it, and I think that as a

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<v Speaker 3>retail based asset class, retail moves when the FED moves.

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<v Speaker 3>So we talk about flows, you know, we we had

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<v Speaker 3>a lot of outflows in twenty one, a lot of

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<v Speaker 3>inflows in twenty one, we had a lot of outflows

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<v Speaker 3>in twenty two. We've been sort of flatish for the

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<v Speaker 3>last couple of years.

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<v Speaker 2>Craig Brandon there with Eaton Vance, Morgan Center. I'm sorry

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<v Speaker 2>he's more with Morgan Stanley, but I'll always say he's

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<v Speaker 2>with Eaton Vance. My parochial parochial narrowness is well, those

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<v Speaker 2>are really interesting conversation. I promise we'll do more on

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<v Speaker 2>municipal bonds and if someone with really the decades of

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<v Speaker 2>experience such as Craig is is important on the politics

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<v Speaker 2>of the moment. We could have easily picked four or

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<v Speaker 2>five six tapes, but there's nothing like the holistic knowledge

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<v Speaker 2>of Wendy Schiller at Brown. She has just been a

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<v Speaker 2>huge promotion at Brown. Brown has chosen to rebuild out

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<v Speaker 2>their already successful international relations into a substantial new project.

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<v Speaker 2>She is spearheading that project for Brown University, and where

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<v Speaker 2>those new duties were just humbled that she can spend

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<v Speaker 2>time with us. You know, she gets some political flak,

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<v Speaker 2>I'll say the least, but I think for Republicans, Democrats,

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<v Speaker 2>and those unaffiliated, Wendy Schiller is always interesting on the

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<v Speaker 2>cacophony of the day, Professor.

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<v Speaker 4>Schiller, I'm looking at the difference between our daily lives

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<v Speaker 4>and the functioning of the federal government and Biden's capacity. Understand,

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<v Speaker 4>it's a reasonable question to ask for an eighty one

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<v Speaker 4>year old president who had a disastrous debate and shows

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<v Speaker 4>signs of aging. There's no question it's fair game. But

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<v Speaker 4>most Americans want to know is the government working or

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<v Speaker 4>is the government not working? And you know, you're talking

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<v Speaker 4>about inflation, we sort of get a sense it might

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<v Speaker 4>be easing. Things are slowing, but the economy is still

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<v Speaker 4>pretty vibrant. The question is does consumer sentiment shift in

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<v Speaker 4>time to reward Biden for handling inflation or not? And

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<v Speaker 4>I think that's really the big determinant. You know, age

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<v Speaker 4>is a big deal in the media right now. But

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<v Speaker 4>you know, is the federal government functioning?

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<v Speaker 3>Yes?

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<v Speaker 4>It is? Is it shut down? No?

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<v Speaker 1>It isn't.

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<v Speaker 4>Is it the meeting with our NATO allies, Are we

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<v Speaker 4>sending weapons where we need to spend weapons in the

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<v Speaker 4>interest of the United States, according to him.

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<v Speaker 1>Yes, So that's the big.

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<v Speaker 4>Disconnect is the media focus on this issue, whereas the

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<v Speaker 4>rest of the country kind of experience is the federal

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<v Speaker 4>government and says, right now, except for inflation, working decently well.

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<v Speaker 2>Wendy Schuller of Brown University, I thought David Gerrow is riveting.

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<v Speaker 2>Of course, he's doing the big take, has a recent

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<v Speaker 2>big take on President Biden. He has a recent big

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<v Speaker 2>take on the madness of the French outcome as well.

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<v Speaker 2>And girl really focused on the NATO meetians coming up here.

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<v Speaker 2>They begin Wednesday into Thursday Friday, and of course of

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<v Speaker 2>press conference. I believe Thursday, I'm guessing afternoon with President Biden,

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<v Speaker 2>hugely anticipated worldwide. We'll have full coverage of that press conference,

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<v Speaker 2>of course, Amory Hoard and I know spearheading that effort

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<v Speaker 2>as well. We're out on YouTube. You go to search

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<v Speaker 2>in Google, you go YouTube Bloomberg Podcast. It gets you

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<v Speaker 2>there to our live icon Lisa Mateo leading the icon

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<v Speaker 2>off as you would well expect, and you can then

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