Speaker 1: Bloomberg Audio Studios, podcasts, radio news. The single best idea
Speaker 1: and one of the great, single best ideas we have,
Speaker 1: is we pay attention to people from decades back. We
Speaker 1: get it right, sometimes get it wrong, but more often
Speaker 1: than not give us the benefit of experience. Chuck Clow
Speaker 1: is a legend. He's out of New England. He's worked
Speaker 1: for old colonial management. There's a name from the past
Speaker 1: in Boston, iconic at merilynch There is no other way
Speaker 1: to put it. Huge influence within equity strategy and having
Speaker 1: the courage to be in the market. He's a bull.
Speaker 1: We spoke to Chuck Clow today and of course he
Speaker 1: went back to one of his core theories, study demographics.
Speaker 2: Let's look at the events that created forty years of
Speaker 2: declining interest rates and declining inflation, and of course that
Speaker 2: was interrupted by COVID and the tremendous government response to that,
Speaker 2: but those three factors were one demographics. As people aged,
Speaker 2: they get older. We've seen that in Japan for thirty years,
Speaker 2: and we started seeing that in Europe in the early teens,
Speaker 2: and now we're seeing it in the United States where
Speaker 2: we are seeing the baby boomers retire. And once you retire,
Speaker 2: you stop spending. You don't buy houses, you don't buy cars.
Speaker 2: So it's one of the reasons why we think we're
Speaker 2: beginning to see a net savings balance in the household sector,
Speaker 2: and of course that'll only pick up as the baby
Speaker 2: boomers really really do retire. And the second thing, of course,
Speaker 2: is where balance sheets are. Private debt is still one
Speaker 2: hundred and fifty percent of GDP, and that means his
Speaker 2: interest rates do go up, it slows and spending. We're
Speaker 2: seeing that in credit cards. And then thirdly there's technology,
Speaker 2: which of course is booming today. It's one investment cycle
Speaker 2: we have. You put those three things together, they only
Speaker 2: become more intense as we go through the rest of
Speaker 2: the decade. So I wouldn't give up financial assets yet.
Speaker 1: Check clout Optimistic and of course mentioning technology there as well.
Speaker 1: What a joy yesterday. Thank you for the many comments
Speaker 1: worldwide on our conversation. Too brief was Simon Johnson at
Speaker 1: the Massachusetts Institute of Technology. Exciting day yesterday for MIT
Speaker 1: in Chicago, looking at the technology overlay, the institutional overlay
Speaker 1: of our economy and of our economics. We followed that
Speaker 1: up today with someone with Operational Research Excellence from MIT.
Speaker 1: Katherine Kaminsky is just wonderful about the market, the trends
Speaker 1: that are out there. She says, it's very hard right now,
Speaker 1: particularly in fixed income, to make trend investments. Got into
Speaker 1: a lot of the nuances of that. But near the
Speaker 1: end of our conversation, I noticed that Katie Kaminsky teaches
Speaker 1: it slow. I asked her about Simon Johnson. I asked
Speaker 1: her about the air at Sloan at.
Speaker 3: MIT, I'm so excited, and you may not know this,
Speaker 3: but I actually spent ten years of my career in Sweden,
Speaker 3: so where they kind of also do the Nobel Prize,
Speaker 3: and it's just it's just such an amazing place where
Speaker 3: people are really changing the world. And MIT for me,
Speaker 3: just seeing that we had the JOIN conference was at
Speaker 3: MIT last week, a journal of Investment Management, and we
Speaker 3: had two of our junior quants there and they actually
Speaker 3: saw Johnson speak before this weekend. So this is like,
Speaker 3: it's a very pride moment for us.
Speaker 1: Katie Kaminski too short a conversation on her Sloan school
Speaker 1: att t We're going to take a sabbatical here on
Speaker 1: single best idea over the next summer days. I've got
Speaker 1: a dashed room in back the obligatory Roman wedding, I
Speaker 1: threatening to drive a Vespa. We'll see if we can
Speaker 1: work that out where we do a photo shoot, where
Speaker 1: they'll go You're no Greg Peck, but we will see
Speaker 1: on that. What we can tell you is these are
Speaker 1: exciting times into the election. Of course, our conversation with
Speaker 1: the Prime Minister of the United Kingdom yesterday at Bloomberg,
Speaker 1: a conversation today with presidential candidate Donald Trump will much
Speaker 1: more on that unbalance of power. We're out on YouTube.
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Speaker 1: Bigger than I thought. On Apple car Play as well,
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Speaker 1: YouTube podcasts, on Apple podcasts. This is single best idea.