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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. The single best idea

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Speaker 1: and one of the great, single best ideas we have,

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Speaker 1: is we pay attention to people from decades back. We

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Speaker 1: get it right, sometimes get it wrong, but more often

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Speaker 1: than not give us the benefit of experience. Chuck Clow

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Speaker 1: is a legend. He's out of New England. He's worked

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Speaker 1: for old colonial management. There's a name from the past

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Speaker 1: in Boston, iconic at merilynch There is no other way

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Speaker 1: to put it. Huge influence within equity strategy and having

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Speaker 1: the courage to be in the market. He's a bull.

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Speaker 1: We spoke to Chuck Clow today and of course he

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Speaker 1: went back to one of his core theories, study demographics.

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Speaker 2: Let's look at the events that created forty years of

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Speaker 2: declining interest rates and declining inflation, and of course that

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Speaker 2: was interrupted by COVID and the tremendous government response to that,

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Speaker 2: but those three factors were one demographics. As people aged,

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Speaker 2: they get older. We've seen that in Japan for thirty years,

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Speaker 2: and we started seeing that in Europe in the early teens,

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Speaker 2: and now we're seeing it in the United States where

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Speaker 2: we are seeing the baby boomers retire. And once you retire,

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Speaker 2: you stop spending. You don't buy houses, you don't buy cars.

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Speaker 2: So it's one of the reasons why we think we're

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Speaker 2: beginning to see a net savings balance in the household sector,

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Speaker 2: and of course that'll only pick up as the baby

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Speaker 2: boomers really really do retire. And the second thing, of course,

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Speaker 2: is where balance sheets are. Private debt is still one

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Speaker 2: hundred and fifty percent of GDP, and that means his

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Speaker 2: interest rates do go up, it slows and spending. We're

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Speaker 2: seeing that in credit cards. And then thirdly there's technology,

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Speaker 2: which of course is booming today. It's one investment cycle

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Speaker 2: we have. You put those three things together, they only

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Speaker 2: become more intense as we go through the rest of

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Speaker 2: the decade. So I wouldn't give up financial assets yet.

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Speaker 1: Check clout Optimistic and of course mentioning technology there as well.

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Speaker 1: What a joy yesterday. Thank you for the many comments

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Speaker 1: worldwide on our conversation. Too brief was Simon Johnson at

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Speaker 1: the Massachusetts Institute of Technology. Exciting day yesterday for MIT

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Speaker 1: in Chicago, looking at the technology overlay, the institutional overlay

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Speaker 1: of our economy and of our economics. We followed that

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Speaker 1: up today with someone with Operational Research Excellence from MIT.

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Speaker 1: Katherine Kaminsky is just wonderful about the market, the trends

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Speaker 1: that are out there. She says, it's very hard right now,

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Speaker 1: particularly in fixed income, to make trend investments. Got into

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Speaker 1: a lot of the nuances of that. But near the

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Speaker 1: end of our conversation, I noticed that Katie Kaminsky teaches

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Speaker 1: it slow. I asked her about Simon Johnson. I asked

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Speaker 1: her about the air at Sloan at.

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Speaker 3: MIT, I'm so excited, and you may not know this,

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Speaker 3: but I actually spent ten years of my career in Sweden,

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Speaker 3: so where they kind of also do the Nobel Prize,

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Speaker 3: and it's just it's just such an amazing place where

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Speaker 3: people are really changing the world. And MIT for me,

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Speaker 3: just seeing that we had the JOIN conference was at

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Speaker 3: MIT last week, a journal of Investment Management, and we

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Speaker 3: had two of our junior quants there and they actually

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Speaker 3: saw Johnson speak before this weekend. So this is like,

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Speaker 3: it's a very pride moment for us.

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Speaker 1: Katie Kaminski too short a conversation on her Sloan school

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Speaker 1: att t We're going to take a sabbatical here on

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Speaker 1: single best idea over the next summer days. I've got

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Speaker 1: a dashed room in back the obligatory Roman wedding, I

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Speaker 1: threatening to drive a Vespa. We'll see if we can

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Speaker 1: work that out where we do a photo shoot, where

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Speaker 1: they'll go You're no Greg Peck, but we will see

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Speaker 1: on that. What we can tell you is these are

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Speaker 1: exciting times into the election. Of course, our conversation with

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Speaker 1: the Prime Minister of the United Kingdom yesterday at Bloomberg,

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Speaker 1: a conversation today with presidential candidate Donald Trump will much

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Speaker 1: more on that unbalance of power. We're out on YouTube.

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Speaker 1: Subscribe to Bloomberg Podcasts at YouTube. On your commute, Android

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Speaker 1: Bigger than I thought. On Apple car Play as well,

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Speaker 1: and of course in Washington, New York and Boston on

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Speaker 1: YouTube podcasts, on Apple podcasts. This is single best idea.