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Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney. Along

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Speaker 1: with my co host of Bonnie Quinn. Every business day

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Speaker 1: we bring you interviews from CEOs, market pros, and Bloomberg experts,

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Speaker 1: along with essential market moving news. Find the Bloomberg Markets

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Speaker 1: Podcast on Apple podcast or wherever you listen to podcasts,

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Speaker 1: and on Bloomberg dot com. Let's get to our next guest, now,

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Speaker 1: Phil Orlando, with chief equity market strategist and ahead of

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Speaker 1: client portfolio managing at Federated Hermes and always has really

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Speaker 1: interesting things to say. Phil, Since the last time we

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Speaker 1: spoke with you, I think maybe a couple of structural

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Speaker 1: fragilities have been exposed in this market and also some

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Speaker 1: froth in places, more places now than before. What's your

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Speaker 1: big take on what's going on between the redditors and

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Speaker 1: the market and the brokerages and the hedge funds. Well,

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Speaker 1: you know this whole uh reddit game, stop robin hood

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Speaker 1: saying is is very interesting and certainly very entertaining. But

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Speaker 1: but the reality is that that ultimately fundamentals still matter.

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Speaker 1: You know. I don't know if you stayed up late

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Speaker 1: to watch the Saturday Night Live skit with Kate McKinnon

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Speaker 1: and Pete Davidson. But you know, all kidding aside, that

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Speaker 1: really shone a light on what ultimately matters longer term,

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Speaker 1: and that if a company's fundamentals are strong, revenues and

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Speaker 1: earnings will go up and that will drive share prices higher.

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Speaker 1: If the business is weak, revenues and earnings are going

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Speaker 1: the wrong way, ultimately the share price will decline. Now

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Speaker 1: that there could be noise in the interim, and that's

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Speaker 1: what we're seeing now with with you know, the hedge

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Speaker 1: funds and the redded people and whatever. But but you know, um,

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Speaker 1: longer term, ultimately, these companies are going to succeed or

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Speaker 1: fail on the basis of the underlying supply and demand

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Speaker 1: and strength of their business. Still. I mean, you know,

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Speaker 1: we've seen these stype the phenomena in the past and

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Speaker 1: kind of you know, a term of old day trader,

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Speaker 1: if you will. But I guess what's new here is

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Speaker 1: there's so much liquidity on the sidelines, so much liquidity

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Speaker 1: in the marketplace. You've got the advent of social media

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Speaker 1: and the ability for retailers to kind of really team

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Speaker 1: up if you will, in a particular security. Um, you've

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Speaker 1: got the pandemic, people are kind of locked in their homes.

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Speaker 1: How much of this is kind of a one off,

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Speaker 1: short term phenomena versus maybe a new wrinkle to the

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Speaker 1: market going forward. Everything you've said is absolutely true that

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Speaker 1: we you know, the advent of social media, the fact

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Speaker 1: that they're somewhere between four and five trillion dollars of

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Speaker 1: cash sitting on the sidelines. Uh, we're sitting here. Uh.

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Speaker 1: The last personal savings rate we saw was around thirteen

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Speaker 1: or fourteen percent. So people are flush with cash, stock

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Speaker 1: markets up, They've got nothing to do. We're locked in

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Speaker 1: our house. We've got a snowstorm here in the northeast, um,

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Speaker 1: you know, And and people are bored, and they say, well,

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Speaker 1: let's let's stick it to the man. Let's let's take

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Speaker 1: out some of these wealthy hedge fund guys and team

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Speaker 1: up and drive these stocks higher and force them to

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Speaker 1: cover their shorts. All of that's true, But the reality is,

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Speaker 1: where's the endgame? At what point do fundamentals matter and

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Speaker 1: individuals need to sell to lock in their profits or

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Speaker 1: create some additional liquidity. Who are they going to sell

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Speaker 1: to if the fundamentals are poor and everyone who uh,

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Speaker 1: you know, potentially they would need to buy the stock

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Speaker 1: is already in UM, so you run the risk of

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Speaker 1: looking at the mirror image of this somewhere down the

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Speaker 1: road now is that? Is that somewhere down the road tomorrow,

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Speaker 1: next week, next month timing? I have no idea, So yeah,

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Speaker 1: and I suppose that was my original question, Phil. I mean,

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Speaker 1: we have a combination of market makeup, positioning, hedge, fund positioning,

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Speaker 1: retail positioning, so much leverage, technicals, economic risk thanks to COVID,

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Speaker 1: there are so many difficulties out there. What would make

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Speaker 1: you want to trade in this market or I mean,

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Speaker 1: would you even want to sort of deleverage a little

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Speaker 1: bit here? Well, certainly we're not buying into this. We're

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Speaker 1: we're not buying these stocks that we think or you know,

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Speaker 1: have poor fundamentals that are getting driven up because of

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Speaker 1: these market dynamics. Ultimately, we're looking across the proverbial valley

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Speaker 1: and seeing, you know, what could happen on the other

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Speaker 1: side when when you've got some margin calls or when

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Speaker 1: you start to get a tsunami of selling in order

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Speaker 1: to create some liquidity. So we're studying the underlying fundamentals

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Speaker 1: of the market, which frankly we think are pretty good.

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Speaker 1: So so, you know, as if there is an air

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Speaker 1: pocket here, if there is a dislocation over the course

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Speaker 1: of the next month or two, and you know, the

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Speaker 1: market gets flapped around and drops by, you know, a

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Speaker 1: fairly significant amount. And we still think the fundamentals are

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Speaker 1: good based upon the things the President Biden is doing,

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Speaker 1: and the rollout of the vaccine, and the fact that

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Speaker 1: the set is keeping interest rate to zero. All of

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Speaker 1: those things the things that truly matter. At that point

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Speaker 1: the decision maybe, well, let's let's throw to the log

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Speaker 1: on the fire here, expecting that stock prices will work

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Speaker 1: higher longer term. All right, so let's go a little

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Speaker 1: bit on the on the fundamentals here, get away from

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Speaker 1: the redditors. Earnings were about the third or the way through.

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Speaker 1: What are you seeing here. We're seeing a great earning season.

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Speaker 1: We're as you said, we're about forty of the way through. Uh,

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Speaker 1: we are seeing The consensus expectation going into the quarter

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Speaker 1: was that earnings would be down something in the order

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Speaker 1: of about nine or ten percent on a year of

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Speaker 1: a year basis. So far, earnings are up. Three of

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Speaker 1: the companies that have already reported have beaten by an

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Speaker 1: average of seventeen and a half percent. That is the

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Speaker 1: third best beat rate in history, trailing only the second

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Speaker 1: quarter in the third quarter of last year. So the

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Speaker 1: earnings are coming in strong again, the vaccines rolling out,

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Speaker 1: the sets staying at zero, all of that suggests that

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Speaker 1: the underlying fundamentals for the market, the stuff that truly matters,

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Speaker 1: isn't pretty good shape. Hey Phil, thanks as always, always

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Speaker 1: appreciate getting your bullish call on the market. You've been

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Speaker 1: absolutely spot on. Uh So we'll see how the rest

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Speaker 1: of these earnings come through this quarter. Phil Orlando, chief

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Speaker 1: equity market strategist and head of client portfolio Management of

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Speaker 1: Federated Hermes. Uh they're based he is based in New

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Speaker 1: York City and eighty billion dollars in equities under management,

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Speaker 1: six fifteen billion firm wide, So Federated Hermes all over

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Speaker 1: the market. And Phil certainly has a great handle on

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Speaker 1: the market. And again, as I said, he's been consistently bullish,

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Speaker 1: you know, over the last couple of years, and he's

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Speaker 1: been absolutely spot on. Well, the trading activity we've seen

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Speaker 1: in a handful of stock starting last week with game

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Speaker 1: Stock Game Stop and then expanding to others really highlighted

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Speaker 1: a trading strategy of looking for stocks relatively small to

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Speaker 1: MidCap stocks with big short interest and jumping in on

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Speaker 1: those and creating a good old fashioned short squeeze. One

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Speaker 1: of the folks that's involved in in just kind of

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Speaker 1: the whole process of the data around short interests is

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Speaker 1: Bob Sloan, founder and managing partner of S three Partners

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Speaker 1: S three Partners of finance company that provides data analytics.

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Speaker 1: It's most used product is black app. It's the market

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Speaker 1: standard for real time short interests and securities finance for

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Speaker 1: about forty thousand security so clearly on top of that

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Speaker 1: short interest data. Bob, thanks so much for joining us here.

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Speaker 1: What did what did you make of last week? Your

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Speaker 1: company and you you've been involved in the this. We

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Speaker 1: may have lost Paul in the blizzard. It's kind of

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Speaker 1: to make us noment, but Bob, the general point is

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Speaker 1: well taken. So what did you make of last week? Well,

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Speaker 1: we were seeing the markets change right in front of

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Speaker 1: our eyes. There's a new socially mobilized force and investing

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Speaker 1: and it has taken to targeting short sellers as its

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Speaker 1: investment strategy and opportunity for the time being. How many

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Speaker 1: times can this happen? So for example, this week it

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Speaker 1: seems to be silver, but it's a whole different bowl

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Speaker 1: game taking on something like silver then taking on a

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Speaker 1: stock like game stock. I think what we're seeing isn't

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Speaker 1: just an attack on institutions generally. Um. That's one of

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Speaker 1: the things I wrote in the piece UM that I

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Speaker 1: put up on on on our website, is that you know,

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Speaker 1: the the attack on the capitol, Um, you're seeing an

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Speaker 1: attack on financial institutions, just just an attack on institutions generally.

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Speaker 1: And this has become the nexus of Reddit. Combined with

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Speaker 1: socially scaled activists, investing has become an attack on institutions.

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Speaker 1: And this is why they love Elon must so much.

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Speaker 1: You know, he's like, how can they love a billionaire

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Speaker 1: because he took on the short sellers in one It's

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Speaker 1: that simple for now, at least. I mean, you know,

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Speaker 1: these stories are never over until they're over. But they

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Speaker 1: also embrace a lot of people that sort of say

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Speaker 1: the right thing but aren't necessarily doing the right thing.

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Speaker 1: I mean, um, you know, he took he may have

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Speaker 1: taken all the short sellers, but in their own way,

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Speaker 1: the short sellers can flush out things like fraud and

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Speaker 1: you know, wrong valuations and stuff on Wall Street. So

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Speaker 1: why are short sellers in particular the bad guy? I

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Speaker 1: don't think that they are, you know, I obviously have

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Speaker 1: a very long history of understanding and defending the right

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Speaker 1: to have negative views expressed in the marketplace. There's no

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Speaker 1: marketplace unless there's two way price discovery, meaning, you know,

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Speaker 1: it can't just be all up. It's like having a

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Speaker 1: democra see where you can only vote yes. That's not

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Speaker 1: a society, right. You have to be able to vote

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Speaker 1: no too. And so I think when you see these

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Speaker 1: things like on Meet the Press yesterday where Chuck Todd

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Speaker 1: is asking, you know, people from the White House, should

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Speaker 1: short selling be banned? You know, that's just kind of stupid.

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Speaker 1: That's just not how markets work. We need short selling

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Speaker 1: and we need that function to be in the marketplace

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Speaker 1: because otherwise when we want to get our money, when

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Speaker 1: we want our money, it's not going to be there.

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Speaker 1: And that's really vitally. Bob, you said a few minutes

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Speaker 1: ago that this is a populist revolution in financial markets,

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Speaker 1: and indeed, if you look at some of the language,

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Speaker 1: you know that's obviously what what some of the characteristics

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Speaker 1: of this sort of quote unquote revolution are but it

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Speaker 1: was a real revolution. Wouldn't these people be be targeting

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Speaker 1: long positions just as much as short positions? Well, you know,

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Speaker 1: you know, I think that, Um, the revolution is in

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Speaker 1: the use of the technology, and it's made them an

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Speaker 1: activist investor. So typically an activist would show up to

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Speaker 1: a company and say, you know, I own six percent

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Speaker 1: of the shares and you know, these are the things

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Speaker 1: I like the company to go do, and the company

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Speaker 1: would the other adopt a strategy not to do that,

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Speaker 1: or they generally would say, okay, you know, let's let's

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Speaker 1: fire people. And this is something much more basic. It's hey,

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Speaker 1: I like the popcorn at AMC. You know, I like

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Speaker 1: my flip phone. I like talking to my person at

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Speaker 1: game stuff. It's much more about a cultural thing, and

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Speaker 1: it just so happens to be. These stocks are all

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Speaker 1: more or less in one sector, consumer and retail, and

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Speaker 1: so this is why it's happening. Um, this cross current

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Speaker 1: between socially mobilized investing and short interest in this area. Hoop,

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Speaker 1: are you surprised that some big hedge funds really really

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Speaker 1: got hurt here? UM? Name me a risk model from

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Speaker 1: the Federal Reserve to any hedge fund in the world

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Speaker 1: that saw this as a risk. A good point. What

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Speaker 1: do you think is next year, Bobo, We're gonna see

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Speaker 1: more of this going forward, this combination of social media

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Speaker 1: and trading activity. It's a really it's a really sticky

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Speaker 1: question because the little person, as it were, and they're

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Speaker 1: not little people, and that's not you know, I'm just

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Speaker 1: saying the smaller investor is retail is now empowered with

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Speaker 1: something massively potent, and so how do you regulate that?

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Speaker 1: That is the sixty foll question. Yeah, this, of course,

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Speaker 1: as we just get news that Robin Hood had to

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Speaker 1: recapitalize itself once again. According to Dow Jones, it's taken

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Speaker 1: another more than two billion dollars to point four billion

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Speaker 1: dollars from shareholders scaring requirements. Yeah, Vonnie, So that's a

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Speaker 1: great point. You know, one of the things that should

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Speaker 1: be examined here is what happened with that company in

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Speaker 1: terms of how they were handling margin, What were the

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Speaker 1: risk parameters that they had in place? Um as this

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Speaker 1: flow is happening. So that's certainly an area of you know,

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Speaker 1: rightful scrutiny. You're gonna have to promise come on again

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Speaker 1: very soon, because we want to keep our eye on

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Speaker 1: this story, or it'll keep its eye on us, for sure.

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Speaker 1: Bob Sloan as founder and managing partner at S three Partners,

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Speaker 1: And it's interesting listening to Bob Sloan just about you know,

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Speaker 1: short selling being a part of the market of Annie

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Speaker 1: and I think that's uh, I think what most people

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Speaker 1: tend to conclude, uh, you know, as they think about

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Speaker 1: short selling. We seem to have this discussion about short

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Speaker 1: selling every five or six years or so and whether

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Speaker 1: it should be allowed in the marketplace. And I think

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Speaker 1: where we always come down as a marketplaces it is

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Speaker 1: a normal part of a healthy market. Although sometimes ago

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Speaker 1: I always thought the short sellers were the black sheep

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Speaker 1: of the market. For the populace to jump on the

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Speaker 1: short seller is is it's it's a little ironic. I mean,

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Speaker 1: I think it has something to do with GM as well. Yeah,

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Speaker 1: we'll have more on that coming up. This is Bloomberg. Well,

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Speaker 1: today is the first day of Black History Month. As

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Speaker 1: a country continues to struggle with how to address racial inequality,

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Speaker 1: our next guest can discuss how individuals can support racial

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Speaker 1: diversity with their investments joining us now is Marvin Owens.

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Speaker 1: It's the chief Engagement Officer at Impact Shares and a

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Speaker 1: former Senior Director of Economic Development at the n double

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Speaker 1: A CP. Marvin, thanks so much for joining us here.

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Speaker 1: I love to start out with just getting a description

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Speaker 1: of what Impact Shares does. Hey, thanks for having me.

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Speaker 1: It's good to be here. UH. Impact Shares It's is

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Speaker 1: a first of its kind nonprofit fund manager that really

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Speaker 1: focuses on how you connect capital with social causes. We

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Speaker 1: are an engagement for where engagement platform where investors and

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Speaker 1: corporations and advocacy organizations have come together um to use

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Speaker 1: capital to move the needle on social issues. So in

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Speaker 1: the case of our current our current platform we have,

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Speaker 1: of course are in a CP fund which is The

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Speaker 1: advocacy organization is the a c P. We have the

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Speaker 1: w O MN and fund which is focused on gender

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Speaker 1: equity is UH Ethics. The organization is the y w

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Speaker 1: c A, and we're working with the u N on

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Speaker 1: our fund sd g A, which focuses on sustainable development goals,

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Speaker 1: all of which are our platforms that create an opportunity

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Speaker 1: to kind of really move the needle on social issues

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Speaker 1: and using capital to really make that happen, which is fantastic.

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Speaker 1: Let's start with n A c P, which is the

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Speaker 1: in fact shares a CP Minority Empowerment e t F.

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Speaker 1: Right now, you have a hundred and seventy four holdings

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Speaker 1: in there, and the top one is Apple, followed by Microsoft.

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Speaker 1: What can you do in order to pressure Apple, Microsoft

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Speaker 1: and the other major companies like that that are you know,

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Speaker 1: just one four of the e t F to make

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Speaker 1: some positive changes. Well, here's the thing. I think that

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Speaker 1: in the current environment in which their number of companies

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Speaker 1: that have come out and made some very explicit statements

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Speaker 1: of standing against racial discrimination and wanting to really engage

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Speaker 1: and change, UM, we now have this e t F

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Speaker 1: which is another tool to really insent those kinds of changes.

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Speaker 1: I mean, uh, this is really not just driven by

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Speaker 1: the advocacy community, but it really is being driven by

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Speaker 1: the investor community as well. UM. Investors really do want

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Speaker 1: to see companies UM truly engaged in the kind of

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Speaker 1: social issues that reflective of of society within the society's

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Speaker 1: best interests. So when it comes to racial equity, UM,

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Speaker 1: now it's not just the advocacy community kind of voicing

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Speaker 1: these concerns, but now it's also the investor communities pushing

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Speaker 1: for these changes, which I think is going to help

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Speaker 1: these corporations to move the needle. Marvin, the pandemic and

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Speaker 1: the economic fallout UM is really shown. I say, brighter light,

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Speaker 1: if you will, on the economic disparity in this country. Um,

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Speaker 1: how are you kind of viewing that, how much of

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Speaker 1: this potential damage to some of these minority communities might

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Speaker 1: be a little bit more permanent than temporaries relates to

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Speaker 1: the pandemic. Yeah, we're really concerned about that. You know,

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Speaker 1: in the middle of this pandemic, black workers have really

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Speaker 1: been impacted disproportionately, just like black workers have been impacted

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Speaker 1: by UM the infections of the disease itself. I think

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Speaker 1: it's important to note that black workers have lost a

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Speaker 1: disproportionate amount of jobs as well, and so we are

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Speaker 1: concerned about that because you add this COVID reality to

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Speaker 1: an already widening wealth gap and and and wage gap

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Speaker 1: that exists in this country, and you have been making

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Speaker 1: something that is more devastating and hopefully not permanent. But

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Speaker 1: I think there's some things we can do to change that,

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Speaker 1: which means we really need to look at legislation that

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Speaker 1: really understands what these issues all about and really moves

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Speaker 1: the needle on making sure that we close some of

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Speaker 1: these gaps. I think there's a lot we can do

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Speaker 1: to gather them, and I'm encouraged by the current administration

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Speaker 1: which is making all the all the right moves and

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Speaker 1: saying the right things. We just need to make sure

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Speaker 1: that we are able to push to make sure the

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Speaker 1: changes are really implemented policy wise, right exactly? How you know,

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Speaker 1: what do you like about the Widen racial Equity Plan,

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Speaker 1: Let's say, Marvin, I mean, what are the parts that

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Speaker 1: we really need to make sure come to fruition. Well,

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Speaker 1: I think, um, first of all, you have to just

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Speaker 1: kind of just kinda give them some some some recognition

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Speaker 1: for being able to even use the words like white supremacy,

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Speaker 1: which I don't think any other American president has really

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Speaker 1: used in an in an inauguration speech, which says a lot.

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Speaker 1: But I also think we've got to move the needle

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Speaker 1: on making sure that these uh, these policies are really

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Speaker 1: focused on how do we really tap into the needs

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Speaker 1: of black business owners. UM. I like what they're what

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Speaker 1: they're saying in terms of everything wanting to UM target

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Speaker 1: uh communities of color and making sure that we're talking

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Speaker 1: about racial equity in terms of policy. But we've also

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Speaker 1: got to make sure that UM that we're utilizing black

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Speaker 1: fund managers, that we're utilizing black asset managers. We're looking

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Speaker 1: at how to make sure that we are using minority

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Speaker 1: depository institutions when we roll out these new COVID packages

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Speaker 1: and the COVID relief bills that are coming out. There's

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Speaker 1: a lot we can do to make sure that we

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Speaker 1: are really impacting the communities that need to help UM.

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Speaker 1: And I'm encouraged by what the the Biden administration is saying.

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Speaker 1: I just need to we just needed to make sure

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Speaker 1: they're really following through on their promises. Marvin, If you

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Speaker 1: know our listeners want to maybe incorporate equality issues into

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Speaker 1: their investing, what's the best way to do it. Is

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Speaker 1: it to kind of look at the E s G

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Speaker 1: scores and things like that. Yeah, it's been really important

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Speaker 1: for us to be able to talk about companies that

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Speaker 1: are that are really in our index. And I think

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Speaker 1: that as you look at companies not just in terms

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Speaker 1: of their returns, but also in terms of what they are,

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Speaker 1: how they're engaging in the broaderest society. It's important to

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Speaker 1: make sure that the investor community is looking at all

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Speaker 1: of this. And I think that you can go to

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Speaker 1: our website impact ets dot org and you can look

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Speaker 1: at our holdings. But I think an important thing to

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Speaker 1: do is to make sure that are these companies are

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Speaker 1: not just not just performing well, but they're also doing

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Speaker 1: what they what they should do around me. So so issues.

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Speaker 1: The truth in the matter is diversity helps with business.

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Speaker 1: I think more diverse companies tend to be better, better operators,

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Speaker 1: tend to be more profitable, tend to be folks who

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Speaker 1: do the right thing in larger ways. So um look

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Speaker 1: at our go to our website and you can check

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Speaker 1: it out. Marvin, thank you for joining us today. Marvin

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Speaker 1: Owen's junior is Chief Engagement Officer Impact Shares, former senior

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Speaker 1: director of Economic Development. At the end, double a CP

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Speaker 1: green on the screen today and it looks like the

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Speaker 1: Reddit traders they've have expanded the scope of their buying,

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Speaker 1: moving on from individual equities to commodities such as silver

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Speaker 1: that SOB stuff about eight percent today trading just below

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Speaker 1: thirty dollars and ounce. Let's get a sense of what's

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Speaker 1: going on across markets. We talked to Katie Dreifeld, cross

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Speaker 1: asset reporter for Bloomberg News. Joining us on the phone

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Speaker 1: from New York Mike McLoone commodity strategist for Bloomberg Intelligence.

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Speaker 1: He follows the silver market closely. Katie, give us a

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Speaker 1: sense of kind of what you're seeing in the market here.

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Speaker 1: I'm looking at some of those Reddit stocks last week,

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Speaker 1: some divergent performance there. Yeah, today is an interesting dynamic

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Speaker 1: where you have the broad indexes at least up so

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Speaker 1: far about an hour into treating. But you're also seeing

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Speaker 1: some of those Reddit UH favorites, like you say, they're

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Speaker 1: higher to you a MC higher for example, even as

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Speaker 1: Game Stop takes a bit of a pause. But if

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Speaker 1: you look at what is moving the broader indexes, I

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Speaker 1: mean it helps that you have Tesla, Amazon, Apple all

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Speaker 1: higher today. That's dragging those benchmarks up and it might

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Speaker 1: be helping that if you look at the new short

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Speaker 1: interest that's out of UH partners such as S three

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Speaker 1: Partners and I h S Market, you you can see

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Speaker 1: that short interest on game Stop has actually dropped a bit.

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Speaker 1: It's still relatively high. It's about thirty nine percent going

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Speaker 1: by I h SS numbers, but that was theorized to

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Speaker 1: have created a sort of the gross thing hedge funds

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Speaker 1: having to take down risks and bleeding into the broader markets.

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Speaker 1: It appears that that may be easing now, Mike, what

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Speaker 1: can happen in the silver market. I mean, it's it's

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Speaker 1: a bit more complicated, and there are various ways of

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Speaker 1: trading it, and also there's various ways of market making

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Speaker 1: in it that aren't the same as an individual stock.

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Speaker 1: What are these redators getting into and how are they

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Speaker 1: playing this particular trade? But hello, Vanni, I'm hearing they're

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Speaker 1: buying a lot of calls, most notably out of money calls.

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Speaker 1: But if the narrative plays out as Paul and I

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Speaker 1: know and from b I a lot of us are

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Speaker 1: ex traders. As an ex trader, I will tell them

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Speaker 1: what will probably happen is their cause will expire close

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Speaker 1: to near worthless, and then the market will go up.

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Speaker 1: Because this is a fundamentally bullish market that's very deep.

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Speaker 1: So there's a there's a Bloomberg terminal Um index that

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Speaker 1: I like. It's a total holdings of silver ets that's

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Speaker 1: a twenty four billion dollars And then you look at

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Speaker 1: open interests in futures that's just silver futures. That's twenty

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Speaker 1: six billion dollars. So that's just fifty billion dollars right there.

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Speaker 1: That doesn't even include the physical or a lot of

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Speaker 1: what other trading, so it's a massive market. The differences

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Speaker 1: this case is they just added a little bit, a

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Speaker 1: bit of a narrative to an already fundamentally bullish market.

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Speaker 1: And you know it's helping it for now. But good

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Speaker 1: luck with you by calls, because a lot of times

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Speaker 1: that's just a good way to mess up a good trade.

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Speaker 1: So what is the fundamental call on silver? Mic aside

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Speaker 1: from this short term reddit interest, I look at it,

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Speaker 1: it's a most likely most likely metal to match or

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Speaker 1: to get to near it to make new highs maybe

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Speaker 1: this year, just doing what gold did. So that all

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Speaker 1: time high for silver's around fifth. Yes, it's kind of

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Speaker 1: far right now, but gold did that last year it

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Speaker 1: got up to over two thousand dollars. And there's this

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Speaker 1: gold silver ratio. It's silvered a little bit low versus

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Speaker 1: a twenty year average right now. But to me, it's

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Speaker 1: just a matter of time it gets there. It's just

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Speaker 1: a question how it does it. It might not happen

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Speaker 1: this year, but fundamentally just very strong. Let's look at

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Speaker 1: the supply has been declining, most notably of South American. Now,

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Speaker 1: of course COVID helped reduce supply, but the big pictures

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00:23:54,440 --> 00:23:56,800
Speaker 1: prices have been in a bear market for so long,

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00:23:56,840 --> 00:23:58,360
Speaker 1: so there hasn't been a lot of sentim to bring

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00:23:58,359 --> 00:24:00,560
Speaker 1: on the new supply. And then we have this massive

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00:24:00,600 --> 00:24:04,360
Speaker 1: trend in electrification, in decarbonization. All that means a lot

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00:24:04,359 --> 00:24:07,439
Speaker 1: of it is demand for metals, demand for silver and

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00:24:07,520 --> 00:24:11,320
Speaker 1: not you know, and it's creating less less demand for

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00:24:11,960 --> 00:24:15,359
Speaker 1: energy and fossil fuels. Yeah, Katie, have you been on

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00:24:15,400 --> 00:24:19,879
Speaker 1: the redded boards today? Are traders there? Those kinds of

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00:24:19,880 --> 00:24:22,680
Speaker 1: traders saying that, you know, they're done with game Stop?

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00:24:22,720 --> 00:24:25,960
Speaker 1: Does game stop even come up this week? That's going

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00:24:26,040 --> 00:24:29,359
Speaker 1: to be interesting. I mean, there's also the nuance that

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00:24:29,520 --> 00:24:32,399
Speaker 1: if you look at robin Hood for example, there's still

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00:24:32,520 --> 00:24:36,840
Speaker 1: trading restrictions on eight stocks and GameStop for example, you

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00:24:36,880 --> 00:24:39,639
Speaker 1: can only buy one shared a time right now, So

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00:24:39,800 --> 00:24:43,359
Speaker 1: that has kind of cooled the uh, the mania around

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00:24:43,359 --> 00:24:46,200
Speaker 1: game stop. I mean, if you spend time on Wall

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00:24:46,280 --> 00:24:49,520
Speaker 1: Street sets, it's interesting you are seeing sort of fissures

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00:24:49,600 --> 00:24:53,280
Speaker 1: emerge among the crowds as they latch onto this silver trade.

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00:24:53,600 --> 00:24:55,879
Speaker 1: Some are pointing out that if you look at the

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00:24:56,080 --> 00:24:59,000
Speaker 1: s l v EPF where which is it seems that

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00:24:59,200 --> 00:25:02,240
Speaker 1: retail traders have been getting their exposure to silver through

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00:25:02,280 --> 00:25:06,200
Speaker 1: ets like that. CNEL is the sixth largest holder there,

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00:25:06,320 --> 00:25:09,480
Speaker 1: so that seems to be occupying the board rate. Now,

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00:25:09,960 --> 00:25:12,240
Speaker 1: just this the date over. What are we doing when

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00:25:12,280 --> 00:25:16,840
Speaker 1: it comes to the silver trade, Katie. What's the latest

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00:25:16,880 --> 00:25:19,480
Speaker 1: on the robin Hood and the other platforms getting pushed

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00:25:19,480 --> 00:25:23,160
Speaker 1: back from kind of how they handle things last week? Well,

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00:25:23,240 --> 00:25:25,440
Speaker 1: it's it's difficult. I mean, a lot of the heat

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00:25:25,480 --> 00:25:27,800
Speaker 1: has come down on robin Hood, but you know, when

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00:25:27,840 --> 00:25:31,040
Speaker 1: this started on Thursday, it was it was a wide

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00:25:31,359 --> 00:25:35,399
Speaker 1: range of these retail platforms. Of course, the likes of

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00:25:35,440 --> 00:25:39,720
Speaker 1: Interactive Broker has resolved those issues. Robin Hood continues to

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00:25:39,800 --> 00:25:42,440
Speaker 1: be a question mark, as we know by now they

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00:25:42,480 --> 00:25:46,240
Speaker 1: they raised about one point five billion in additional capital.

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Speaker 1: It's gonna be interesting to see whether, you know, as

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00:25:49,920 --> 00:25:52,720
Speaker 1: the likes of a MC continue to rally, game Stop

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00:25:52,760 --> 00:25:55,040
Speaker 1: is fooling a bit, whether they run into the same

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00:25:55,119 --> 00:25:57,679
Speaker 1: sorts of issues that they ran into last week. With

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Speaker 1: the clearinghouses, all right, you too. Thank you so much

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00:26:01,720 --> 00:26:03,840
Speaker 1: for giving us up to date with what's happening this morning,

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00:26:03,880 --> 00:26:08,000
Speaker 1: this Monday morning, that is Katie Greifeldt and Mike mcgloane,

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00:26:08,080 --> 00:26:11,840
Speaker 1: Mike with Bloomberg Intelligence and Katie with Bloomberg Editorial, and

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00:26:11,880 --> 00:26:14,560
Speaker 1: will continue to follow what happens throughout the day with

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00:26:14,680 --> 00:26:19,880
Speaker 1: the memes, docks and silver in particular. Thanks for listening

475
00:26:19,920 --> 00:26:23,280
Speaker 1: to Bloomberg Markets podcast. You can subscribe and listen to

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00:26:23,359 --> 00:26:27,159
Speaker 1: interviews at Apple Podcasts or whatever podcast platform you prefer.

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00:26:27,400 --> 00:26:30,399
Speaker 1: I'm Bonnie Quinn. I'm on Twitter at Bonnie Quinn, and

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00:26:30,400 --> 00:26:33,000
Speaker 1: I'm Paul Sweeney. I'm on Twitter at pt Sweeney. Before

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00:26:33,040 --> 00:26:35,880
Speaker 1: the podcast, you can always catch us worldwide at Bloomberg

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00:26:35,960 --> 00:26:36,200
Speaker 1: Radio