Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside
Speaker 1: my co host Matt Miller. Every business day we bring
Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
Speaker 1: with essential market moving news. Find the Bloomberg Markets podcast
Speaker 1: called Apple Podcasts or wherever you listen to podcasts, and
Speaker 1: at Bloomberg dot com slash podcast. All right, we've got many,
Speaker 1: many bricks in the wall of worry. Now let's add
Speaker 1: another one, geopolitical concerns, another significant headwind for this market
Speaker 1: to digest. Let's see how the pros are doing it.
Speaker 1: Tracy McMillian, Global head of Asset Allocation Strategy at Wells Fargo. So, Tracy,
Speaker 1: you think about this stuff on a global scale. We
Speaker 1: now have a hot war in yourp um. How does
Speaker 1: that factor into your calculus as you talk to your
Speaker 1: clients about where to allocate capple on a global scale. Yes,
Speaker 1: we we certainly have had to make um some adjustments here.
Speaker 1: But what we are killing alliance telling investors is that
Speaker 1: amid this uncertainty that is certainly being compounded by the
Speaker 1: war in Europe, to make sure that they're going back
Speaker 1: to basics thinking about what their risk tolerances, what their
Speaker 1: time horizon is, and making sure that that does align
Speaker 1: with their allocations. A short term horizon means they should
Speaker 1: probably be holding more cash here, probably more short term
Speaker 1: fixed income, and a longer term horizon, a more aggressive
Speaker 1: risk tolerance. Those investors might want to start dollar cost
Speaker 1: averaging in um We are down ten percent or more
Speaker 1: in some equities markets globally, so it might be a
Speaker 1: good time to, uh, you know, break their cash into
Speaker 1: different buckets and start dollar cost averaging into equities, especially
Speaker 1: if they're below their longer term targets. And where would
Speaker 1: you go? I mean, in terms of sectors, what do
Speaker 1: you think is a good place to buy undervalued right now?
Speaker 1: And what do you think has run too far too
Speaker 1: fast and it's still overvalued because there's still a lot
Speaker 1: of big evaluations out there. There are absolutely and you know,
Speaker 1: one of the places that that we're looking right now
Speaker 1: is information technology and communication services, so those growth areas
Speaker 1: where we see very high quality earning. We also still
Speaker 1: like financials because even though rates have come in here
Speaker 1: um as we've seen a flight to quality, we do
Speaker 1: think that the trend is higher in interest rates. So
Speaker 1: we think that financials have uh you know, come down
Speaker 1: in price. The valuations looked there and uh you know,
Speaker 1: through the course of the next six eighteen months, we
Speaker 1: see some value there. Um where we would stay away,
Speaker 1: we'd stay away from things that are more defensive. So
Speaker 1: you know, thinks of utilities um and also um consumers
Speaker 1: stay poles, consumer shape as we think are going to
Speaker 1: be hit very hard by additional commodities inflation. So those
Speaker 1: are two areas speaking of speaking of tracy, commodities inflation.
Speaker 1: Look at your oil shirt right now. Unbelievable. I mean,
Speaker 1: Greg Jarrett was just telling me that the i e.
Speaker 1: A Is going to deploy emergency oil stockpiles. Um, how
Speaker 1: much can they really deploy? Mr market asked and bid
Speaker 1: up eight percent? So now uh w t I is
Speaker 1: trading at a hundred and three dollars and forty cents
Speaker 1: a barrel. Brent is up at one oh five thirty. UM.
Speaker 1: It's just amazing to watch these games in oil. Whatever
Speaker 1: I'm going to enter, Paul, are we energy independent? I
Speaker 1: thought we were. I thought we're all going green? Tracy,
Speaker 1: have I missed the energy trade? Uh? Oil is certainly
Speaker 1: much higher than we originally thought going into this year.
Speaker 1: But things have changed, and the war in Europe is
Speaker 1: making a tight commodities market and tighter UM. So the
Speaker 1: off ramp to lower inflation, we think it could be prolonged.
Speaker 1: And a big part of that UH inflation is going
Speaker 1: to be that commodities markets and that is across the
Speaker 1: commodities complex are going to continue to be pressured higher.
Speaker 1: If we get this kind of inflation continuing, you're gonna
Speaker 1: have to be Tracy mcbillian. But it was unfair. I'm
Speaker 1: sure you hear that all the time. That will be
Speaker 1: here all week. I looked it up and mcmillian's apparently
Speaker 1: an old Scottish name referring to I guess the offspring
Speaker 1: of a bald man, or maybe it's a Gaelic like
Speaker 1: a monastery or community of Gaelic monks. What do you think, Tracy,
Speaker 1: I mean, it's a perfect name for wealth management, isn't it? Yes,
Speaker 1: it is. But I have heard from my clients UM
Speaker 1: that I should be Tracy mcfillian, So I'll have to
Speaker 1: look into that. What's the what are you look for
Speaker 1: from the State of the Union addressed tonight? We think
Speaker 1: the market is going to be paying attention to so
Speaker 1: there's certainly going to be a paying attention to any um,
Speaker 1: you know change and energy policy. I would say, uh,
Speaker 1: you know, do we need to be focusing more on
Speaker 1: energy security? Um over you know any climate objectives at
Speaker 1: this point? Um, so that that's certainly something we'll be
Speaker 1: looking for. We'll be looking for, um you know, what
Speaker 1: the plans are at this point for build back better
Speaker 1: you know, is that still alive or are we moving
Speaker 1: on to other uh initiatives? And you know, I think, um,
Speaker 1: you know, another thing that we're certainly going to be
Speaker 1: watching for is any change to our policy towards um,
Speaker 1: your Russia or Ukraine. So you know, three big things
Speaker 1: there absolutely or I think a lot of folks for
Speaker 1: with tuning in here Tonitracy McMillian, although the do pit
Speaker 1: games on tonight, so I'm gonna have to go back
Speaker 1: and fourth. But devil sale goes Tracy McMillian, head of
Speaker 1: Global Asset Allocation Strategy for Wells Fargo, giving us her thoughts. Boy,
Speaker 1: looking at oil here nine up nine percent here a
Speaker 1: hundred four hours forty cents of barrel. Let's break that down.
Speaker 1: Let's take a little bit of extra time and look
Speaker 1: at oil here. We can do that with Julia Fanzerious
Speaker 1: Bloomberg News. Oil's future reporting pretty grouped to Bloomberg Markets corresponded, Julia,
Speaker 1: what's going on today? Is this technical? What's going on?
Speaker 1: Why is oil up nine? It is not technical. It
Speaker 1: is all on the headlines right now. So starting off
Speaker 1: with the fact that traders are finally deciding that oil
Speaker 1: exports from Russia and energy supplies in general are going
Speaker 1: to be impacted by sanctions, even if it is indirectly,
Speaker 1: and today is the day where they're just realizing, Okay,
Speaker 1: this is the moment that we have to start pricing
Speaker 1: this in more. And then we saw that the i e.
Speaker 1: A decided to go and have a crude tap into
Speaker 1: their crude releases for sixty million barrels, which at first
Speaker 1: you're like, okay, so maybe crew prices should have slowed
Speaker 1: down a bit, but no, but you know, it's supercharged
Speaker 1: the rally, unbelieved supercharge the rally. And the reason is
Speaker 1: because trainers are saying, well, that's not really that much
Speaker 1: compared to Russian experts. I think it's up to six
Speaker 1: days of Russia's more than zero. It's more than zero,
Speaker 1: but it's letty, what in the heck is going on here?
Speaker 1: I mean, yeah, I get that, you realize, oh, that's
Speaker 1: not very much in wait, what we used twenty million
Speaker 1: barrels a day here, a hundred million barrels a day globally. Uh,
Speaker 1: but you knew that before this, right, and it's better
Speaker 1: than zero. Well, folks, you guys should really witness Matt
Speaker 1: Miller's face. Rain is exploding. Not even talking cars yet.
Speaker 1: I know, let's not, let's not, let's not open that door.
Speaker 1: But to Julia's point, what's interesting here is and I
Speaker 1: mean it's everything that Julie said. I asked her this
Speaker 1: before we became on the show. Why is oil supercharged
Speaker 1: right now? Because nothing has really changed? But she makes
Speaker 1: a really good point on the sanctions bit of it,
Speaker 1: because that's the part that I think a lot of
Speaker 1: people are looking at. Remember, the energy payments have been
Speaker 1: taken out of swift for the moment, or any transactions
Speaker 1: or any swift actions that they might do. But I
Speaker 1: think the assumption here is that eventually that's going to change. So, yes,
Speaker 1: you're right, oil was soaring quite a bit before. But
Speaker 1: these headlines sometimes if there you did see immediate drop
Speaker 1: on the headlines, which would be where you're simple extra
Speaker 1: supply drops oil narrative comes from, but then you really
Speaker 1: have traders reconsider and it's kind of supercharged it. And
Speaker 1: that's a pretty normal thing to see for traders, not
Speaker 1: just an oil but you see in stock markets. You
Speaker 1: see it in all assets. Right when when there's a
Speaker 1: sign that an incredibly large institution is all of a
Speaker 1: sudden freaking out, then traders go, WHOA, we're going to
Speaker 1: run out of oil, Let's buy as much as we
Speaker 1: can right now, exactly. And it was that knee jerk
Speaker 1: reaction that from the I A that then have the
Speaker 1: kne jerk reaction in the crewde markets. What's the futures markets?
Speaker 1: What are they telling you as you take a look
Speaker 1: at them now? Is just oil gonna come down? Ice
Speaker 1: going forwardard? What? Oh? No, the futures market is saying
Speaker 1: quite the opposite. We're backward dated. So we are seeing backwardation, backwardation, yeah,
Speaker 1: and that find that for me again because I'm in
Speaker 1: equad worse No. Yeah, So that means that traders are
Speaker 1: paying more money to get their hands on barrels right now,
Speaker 1: and we're not seeing that go away because supply is
Speaker 1: tight and demand is high, so these prices are not
Speaker 1: going to go down anytime soon. OPEC they're meeting tomorrow
Speaker 1: and it looks like they're also going to continue with
Speaker 1: their four hundred thousand barrels a day, and we know
Speaker 1: that they're not actually meeting that output. So still supplies
Speaker 1: are tight and demand is high. Every time oil gets
Speaker 1: to these prices or goes down drastically, I have to
Speaker 1: relearn how to look at the forward curve. CT is
Speaker 1: a great way to do. Do you see t also
Speaker 1: on the Bloomberg terminal. I was using Ohman before and
Speaker 1: trying to figure it out from there, but it's so
Speaker 1: difficult through the options market the contract. So I'm you know,
Speaker 1: I don't think about it the right way, but if
Speaker 1: you use CT you can. Actually it's right there in
Speaker 1: front of you. Paul, on any uh, I'm guessing on
Speaker 1: pretty much any commodities contract, you can just type CT
Speaker 1: go and pretty when are some of these oil companies
Speaker 1: in the shell patch, you can and say I gotta
Speaker 1: I'm gonna start drilling. Yeah, And re told us just
Speaker 1: now that the Biden administration is reminding people there are
Speaker 1: nine thousand leases out there that haven't been used. Greg Jared,
Speaker 1: at some point it is just gonna leave exactly, wildcatting exactly. Well,
Speaker 1: it comes down to the point on backwardation, right because
Speaker 1: if you actually listen to what some of these CEOs
Speaker 1: are saying, they're saying, well, yeah, we're in deep backwardation. Yeah,
Speaker 1: the spot prices are looking really good right now, but
Speaker 1: that's not sustainable. Remember, you have to look at the
Speaker 1: future's curve and if you have all that demand right now,
Speaker 1: what are good people going to buy later? So a
Speaker 1: lot of a lot of these American companies or American
Speaker 1: shale producers are looking for that backwardation to lessen just
Speaker 1: a little bit. So those spot prices aren't all your
Speaker 1: demand essentially isn't targeted in one point in time, and
Speaker 1: it's more of a longer term play and production plan.
Speaker 1: To add some Mike mcgloan Bloomberg Intelligence, Commodity strategist, he's
Speaker 1: saying we're gonna see fifty dollar oil and then not
Speaker 1: to distant future. He thinks it's gonna come back big time.
Speaker 1: Uh So that whole supply demand thing. But we appreciate
Speaker 1: getting some color here. Juliette Fanzaris, Bloomberg News. Oil's future
Speaker 1: reporter and Cretu Gupta Bloomberg Markets correspondent, just helping us
Speaker 1: break down a little bit this big move up what
Speaker 1: we've seen in energy across the energy complex. But we're
Speaker 1: we focus here on w t I crude oil, Brent
Speaker 1: crude oil brants up on seven point four percent on
Speaker 1: five dollars per barrel, so definitely some supply issues. We
Speaker 1: know the demand is there as this global economy continues
Speaker 1: to reopen, the question really is supply So interesting to
Speaker 1: see what we hear out of OPEC tomorrow. Another difficult
Speaker 1: day in the markets here as in vestors trying to
Speaker 1: digest what we're seeing on the geopolitical front, particularly out
Speaker 1: of Ukraine. Let's get the latest with Megan Hornuman, director
Speaker 1: of Portfolio Strategist Strategy Advertence, Chief Investment Strategists Adverten's Capital Advisors. Megan,
Speaker 1: thanks so much for joining us here. How do you
Speaker 1: think about your portfolio your discussions with your portfolio managers
Speaker 1: as you have to add geopolitical risk to the potential
Speaker 1: wall of worry. Ye. Absolutely. The one thing that's the
Speaker 1: most important is knowing what you own, So not just
Speaker 1: from the broad asset allocation perspective, making sure you're well diversified.
Speaker 1: Even though coming into this crisis no one wanted to
Speaker 1: touch bonds at all, we continue to advise our clients
Speaker 1: at least have some portion of the portfolio in some
Speaker 1: defensive bond positioning because they will consistently be used as
Speaker 1: a portfolio diversification tool. So in that event, you have
Speaker 1: to know what you want from the asset class perspective.
Speaker 1: Then when you delve into your whether it's regions or sectors,
Speaker 1: what is your exposure to Russia itself? Um? Investing in
Speaker 1: international equities, specifically on the developed side has been something
Speaker 1: that we haven't shied away from. So we're consistently having
Speaker 1: conversations with our manager looking at what is the company's
Speaker 1: balance sheet look like, what can they withstand from an
Speaker 1: energy or commodity increased perspective, seeing what kind of impact
Speaker 1: that may have on future earnings. So are you're going
Speaker 1: into portfolios and selling uh Russian assets and anything related
Speaker 1: to Russia? And I wonder, I mean, I can understand
Speaker 1: making that move, um obviously, but it must be difficult
Speaker 1: at a time when there probably are few buyers. Am
Speaker 1: I seeing that correctly? Yeah? Unfortunately, we have very little
Speaker 1: of any exposure to Russia. When we look at our
Speaker 1: overall asset allocation, our managers that we utilize have done
Speaker 1: that job for us before the crisis and then throughout
Speaker 1: the crisis. So I'm not necessarily concerned about the exposure
Speaker 1: to Russia itself. You have to look beyond that now,
Speaker 1: um you know, is their bigger concern and some of
Speaker 1: the other exposure that we have. The one thing that
Speaker 1: history tells us is you had mentioned selling into this.
Speaker 1: It's very dangerous to sell into geopolitical events when you
Speaker 1: don't know what kind of change, if any of this
Speaker 1: is going to have to the fundamental perspective. It's also
Speaker 1: dangerous if you don't know, um, how far the leader
Speaker 1: is going to take this, which we do not know
Speaker 1: how long, how far Putent is going to take this.
Speaker 1: The most important thing is just to make sure that
Speaker 1: you're well diversified, that your portfolio over time can withstand
Speaker 1: short term periods of volatility. We ultimately do believe that
Speaker 1: this will end up being short lived. We don't know
Speaker 1: how much pain that will occur. In the meantime, it's
Speaker 1: very difficult to watch, not just from the humanity humanitarian perspective,
Speaker 1: but also watching these daily moves in the market. So
Speaker 1: we're telling our clients consistently, so let emotions override your
Speaker 1: long term risk, your long term objective. Be very careful
Speaker 1: to be selling, because once you sell, your locking in losses,
Speaker 1: and that can be dangerous for the long run. It's
Speaker 1: proven to be dangerous for the long run. Stay invested.
Speaker 1: Have dry powder, which we do and we have had
Speaker 1: coming into this year, some dry powder to look for opportunities.
Speaker 1: Just consistently be monitoring what you own. We do believe
Speaker 1: the managers have made the right decisions within our asset
Speaker 1: allocation to mitigate some of the exposure that they may
Speaker 1: have to this crisis. And Megan, we also have a
Speaker 1: State of the Union address this evening the first by
Speaker 1: President Biden. What will you be looking for? What will
Speaker 1: your fund managers be looking for? Here? Right now? I
Speaker 1: think the one thing that that's working as unity. We've
Speaker 1: seen that just from these sanctioned perspective is the Western
Speaker 1: world forming together and putting these sanctions from the Russian
Speaker 1: government one by one um and it is the very
Speaker 1: unified approach that right now, especially with the just the
Speaker 1: tragic situations that everybody is looking at on television all
Speaker 1: day long. We need some unity and confidence. But as
Speaker 1: far as I think what people will be looking for
Speaker 1: tonight is is that, you know, bringing the conference back
Speaker 1: in the United States, because people are already speculating about
Speaker 1: what may or may not happen as a results of
Speaker 1: this with other countries, and I think that's dangerous, and
Speaker 1: so we really have to create a sense of confidence
Speaker 1: that we are unified with our other counterparts and we
Speaker 1: against what Russia is doing. I think that that will
Speaker 1: help to some degree. But people will be looking from
Speaker 1: the energy perspective, and it's difficult at this point for
Speaker 1: the administration to kind of do a three sixty on
Speaker 1: some of the green energy initiatives. But I think people
Speaker 1: will be looking on some of the things that the
Speaker 1: administration can do for the short term that can help
Speaker 1: alleviate some of the pain at the pump for for Americans.
Speaker 1: By the way, just got about thirty seconds left. But
Speaker 1: when you're looking to diversify, do you look into commodities
Speaker 1: as well? I mean typically people and retail investors think
Speaker 1: of just stocks and bonds, But do you look at gold,
Speaker 1: do you look at oil? Do you look at aggs?
Speaker 1: Like how far do you go, so we will always
Speaker 1: look at them because they're considered. We kind of lumped
Speaker 1: the commodity these into what is our alternative exposure, but
Speaker 1: instead of focusing on some of the different commodities with
Speaker 1: its crude oil goal because they're highly volatile and our
Speaker 1: clients really have more of an eighteen to twenty four
Speaker 1: month time frame. So what we would focus on is
Speaker 1: other real assets that that can give the same types
Speaker 1: of characteristics in the given our expectation for economic growth.
Speaker 1: So thinking about things like real estate or infrastructure. These
Speaker 1: are summarias the market that we would focus on. Now.
Speaker 1: I think it's it is a very risky game to
Speaker 1: be entering into oil now, specifically because people will be
Speaker 1: doing it on a speculation trade on what's going on
Speaker 1: over these all right, Megan, thank you so much for
Speaker 1: joining us giving a couple of minutes of your time.
Speaker 1: We appreciate it. Megan Hordeman, she is a chief investment
Speaker 1: strategist Adverten's Capital Advisors. This is the big take, the
Speaker 1: best of Bloomberg's in depth original reporting from around the globe.
Speaker 1: We're running on a financial system that's on old technologies.
Speaker 1: We're seeing prices reach fresh record ties what unfolds in
Speaker 1: mid terms, we will no doubt see again in the
Speaker 1: next presidential election. The Big Take on Bloomberg Radio. All right,
Speaker 1: another really cool and impressive Big Take story today out
Speaker 1: on the Terminal and on Bloomberg dot Com Slash Big
Speaker 1: Take this one. This time Bloomberg Opinion measure at President
Speaker 1: Biden's presidency across fourteen metrics. And we have the reporter
Speaker 1: here that focused on the supply chain because that's one
Speaker 1: of our favorite topics here on Bloomberg Markets, Brooks Sutherland.
Speaker 1: She's a calumnist for Bloomberg Opinion. She joins us here live,
Speaker 1: I say, live in our Bloomberg Interactor broker studio. So
Speaker 1: after a couple of years of call ins, we got
Speaker 1: broke back in the studio, Brooke. You gotta fix the
Speaker 1: supply chain for us. It's killing us. Where are we
Speaker 1: right now when you step back and we take a
Speaker 1: look at the global supply chain? Are we any closer
Speaker 1: to fixing it? We are? But I will say that
Speaker 1: nothing is moving is quickly as anybody would like, at
Speaker 1: least of all c e O s, but certainly also
Speaker 1: yes or President Biden. Um So we I mean, I
Speaker 1: will say there's been incremental positive commentary coming out of
Speaker 1: industrial CEOs where they are seeing some improvements on things,
Speaker 1: whether it be resins, uh you know, GM is saying
Speaker 1: they'll have enough semiconductors to significantly ramp up auto production
Speaker 1: this year. Rockwell Automation is also seeing some improvements and semiconductors.
Speaker 1: So there is progress, but it's taking a long time.
Speaker 1: And I think what the result is is then you
Speaker 1: have a lot of these industrial companies banking on a
Speaker 1: significantly better environment in the back half of the year.
Speaker 1: That tends to make investors very nervous. These back end
Speaker 1: waited forecasts have a way of not always playing out
Speaker 1: like we all hoped they might um and so, you know,
Speaker 1: I think it's just it's slow people. I should point
Speaker 1: out the people that you're you know, in your day,
Speaker 1: what you do every day is for Bloomer Opinion, it's
Speaker 1: cover the industrial sector of America, the heartland of America,
Speaker 1: the really cool companies. That's why we're talking about some
Speaker 1: of these companies. But the auto companies, they were the
Speaker 1: kind of the first place where consumers saw, boy, we've
Speaker 1: got a problem out there. And I think that's where
Speaker 1: consumers are really looking to see when auto production does
Speaker 1: in fact ramp up right, And you know, the hope
Speaker 1: is this year that we're going to see some big
Speaker 1: improvements in volumes. But again, I mean, I think it's
Speaker 1: anybody's guests how that actually plays out. And you know,
Speaker 1: the answer to the semiconductor problem particularly is very intractable.
Speaker 1: The way you solve it is by adding significant amounts
Speaker 1: of new supply. You cannot do that overnight. So there's
Speaker 1: a huge wave of investment underway just in the US
Speaker 1: alone to build new semiconductor plants. But this takes years,
Speaker 1: It takes along TI. I just called yesterday the GMC,
Speaker 1: my dealer up in Westchester, Empire UMU MC, and she said,
Speaker 1: I haven't seen a Yukon in months here, and if
Speaker 1: we do get one, it's not gonna have uh might
Speaker 1: not have blind spot um detection, it might not have
Speaker 1: adaptive cruise control, it might not have heated and ventilated
Speaker 1: seats because the chips just aren't there for those things.
Speaker 1: I'm also hearing about delivery issues. Verry rid Holtz just
Speaker 1: had a Toyota FJ forty shipped up from Columbia and
Speaker 1: it sat in customs for five weeks. This is the
Speaker 1: kind of thing that the president can actually impact. Is
Speaker 1: he doing stuff like that at the borders? Is he
Speaker 1: encouraging people to onshore UM production? You know, what is
Speaker 1: the administration doing in terms of actions now to try
Speaker 1: and get it going again? Sure? I mean on the
Speaker 1: semi conductor front, just one point. So the manufacturers are
Speaker 1: also redesigning their products to get around UM some of
Speaker 1: these issues where you know, you have shortages of one
Speaker 1: ship but more of a supply of others, and so
Speaker 1: they're retrofitting up. So it's not just cars. But to
Speaker 1: your point, I mean, it is actually very hard for
Speaker 1: the Biden administration to make a huge different in the
Speaker 1: supply jam because so much of this is controlled by
Speaker 1: private entities, and not just you know a handful of
Speaker 1: private entities, but an entire system that historically has not
Speaker 1: always had the best track record of talking to each other.
Speaker 1: So whether that's manufacturers, whether that's railroads, trucking company, the
Speaker 1: sport operators, the actual workers on the docks, warehouses. So
Speaker 1: what the Biden administration is said is they are trying
Speaker 1: to be a deal broker. They want to bring these
Speaker 1: different parties to the table. They want to make sure
Speaker 1: that those lines of communication are open. Now, we are
Speaker 1: seeing a little bit of progress in the ports, specifically
Speaker 1: those West coast ports Los Angeles and Long Beach, where
Speaker 1: you know, there's been such a long back all the
Speaker 1: ships that has gotten incrementally better. We are still a
Speaker 1: long way away from normal operating conditions in those ports. Um.
Speaker 1: And then longer term, you know, what they would like
Speaker 1: to do is make investments in infrastructure, and you know
Speaker 1: a huge portion of that goes to the ports in
Speaker 1: terms of making our existing set up much better suited
Speaker 1: to handle the kind of cargo demand that we're seeing. Um.
Speaker 1: You know, there's a lot that could be done in
Speaker 1: terms of automation, in terms of you know, just rearranging
Speaker 1: how this logistical apparatus works for the ships that we
Speaker 1: have in our time. But again, you know, back to
Speaker 1: the point about the semiconductor plants, those are not things
Speaker 1: that you can do overnight. Are we gonna on shore anything?
Speaker 1: Of note? Your your Industrial America. Are we gonna on
Speaker 1: shore anything? So I think this is happening to some degree,
Speaker 1: and you've seen companies like snyd Air say, look, we're
Speaker 1: going to add some manufacturing capacity to support the high
Speaker 1: levels of demand. Um, you know, I talked to the
Speaker 1: automation companies like Siemens and Rockwell, which of course would
Speaker 1: be big beneficiaries that any onshoing movement, because you're not
Speaker 1: going to do it to hire a ton of American workers.
Speaker 1: You're going to do it if you can make the
Speaker 1: automation investment to make all of the economics work. So
Speaker 1: I think we are seeing this particularly lower down the
Speaker 1: supply chains, not necessarily the big name brand manufacturers that
Speaker 1: we know, but their suppliers. I want to see a
Speaker 1: big fab plant built right in maybe Columbus, a high
Speaker 1: right writ in the middle. We're doing that, okay, in
Speaker 1: the great state of Ohio in the vehicles the other
Speaker 1: the Ohio State University. Brook Solyin, thanks so much for joining.
Speaker 1: She's a columnist for Bloomberg Opinion. Joining us here in
Speaker 1: our Bloomberg Interactive Broker Studio. You can read all this
Speaker 1: cool big take stuff Bloomberg dot Com Slag Big Take
Speaker 1: or Ni Space Big Take go on the terminal. Thanks
Speaker 1: for listening to the Bloomberg Markets podcast. You can subscribe
Speaker 1: and listen to interviews at Apple Podcasts or whatever podcast
Speaker 1: platform you prefer. I'm Matt Miller. I'm on Twitter at
Speaker 1: Matt Miller three. Pet On Fall Sweeney, I'm on Twitter
Speaker 1: at pt Sweeney. Before the podcast, you can always catch
Speaker 1: us worldwide at Bloomberg Radio