1 00:00:09,840 --> 00:00:13,800 Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane. Daily 2 00:00:13,960 --> 00:00:17,560 Speaker 1: we bring you insight from the best in economics, finance, investment, 3 00:00:18,000 --> 00:00:23,480 Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud, 4 00:00:23,600 --> 00:00:27,240 Speaker 1: Bloomberg dot Com, and of course, on the Bloomberg. What 5 00:00:27,360 --> 00:00:30,440 Speaker 1: you need to know is Andrew Card uh provided public 6 00:00:30,520 --> 00:00:34,960 Speaker 1: service to the nation across numerous presidencies, including as a 7 00:00:35,000 --> 00:00:39,160 Speaker 1: young kid out of Massachusetts wandering into the Reagan White House. 8 00:00:39,159 --> 00:00:42,640 Speaker 1: And we're thrilled at Andy card could join us this morning. Andy, 9 00:00:42,680 --> 00:00:45,040 Speaker 1: what was your first day like under the purview of 10 00:00:45,040 --> 00:00:49,840 Speaker 1: President Reagan? Oh, it was tremendous excitement. I remember first 11 00:00:49,840 --> 00:00:53,080 Speaker 1: of all, Uh, everybody was chipper. They had a wonderful 12 00:00:53,120 --> 00:00:56,240 Speaker 1: attitude and there were there was It was a very 13 00:00:56,280 --> 00:01:01,320 Speaker 1: positive experience from day one because we welcomed you. There 14 00:01:01,360 --> 00:01:05,639 Speaker 1: was a celebration of our great democracy. And Uh. Ronald 15 00:01:05,680 --> 00:01:09,440 Speaker 1: Reagan was a great communicator, not only with the public, 16 00:01:09,720 --> 00:01:12,240 Speaker 1: he was a great communicated with his staff. So he 17 00:01:12,319 --> 00:01:14,320 Speaker 1: made you feel as if you were very much part 18 00:01:14,319 --> 00:01:17,319 Speaker 1: of the game, and he encouraged you to be candid 19 00:01:17,400 --> 00:01:20,280 Speaker 1: with him and not to take his word as if 20 00:01:20,319 --> 00:01:23,800 Speaker 1: it was gospel. With what you observed yesterday. Is it 21 00:01:23,880 --> 00:01:28,760 Speaker 1: the reaffirmation of a republican Reaganism or did the Reagan 22 00:01:28,880 --> 00:01:34,199 Speaker 1: era die yesterday in this unrest. Well, yesterday was a 23 00:01:34,319 --> 00:01:37,000 Speaker 1: very sad day for our democracy. It was I was 24 00:01:37,040 --> 00:01:40,400 Speaker 1: in tears, and it troubles me because I'm also the 25 00:01:40,480 --> 00:01:43,639 Speaker 1: chairman of the National Endowment for Democracy, which Ronald Reagan 26 00:01:43,720 --> 00:01:48,080 Speaker 1: founded almost thirty five years ago, and it was amazing 27 00:01:48,520 --> 00:01:51,520 Speaker 1: for me to be part of the effort of creating 28 00:01:51,520 --> 00:01:53,600 Speaker 1: a climate with democracy was going to be spread all 29 00:01:53,640 --> 00:01:55,920 Speaker 1: around the world. And we were a shiny example. We 30 00:01:56,000 --> 00:01:59,400 Speaker 1: were a city on the hill. And today we attarnished. 31 00:01:59,480 --> 00:02:02,400 Speaker 1: Our democracy is tarnished, and the world is looking at 32 00:02:02,480 --> 00:02:05,680 Speaker 1: us and say this is not right. Maybe democracy isn't 33 00:02:05,720 --> 00:02:07,680 Speaker 1: the right way to go. Well, it is the right 34 00:02:07,680 --> 00:02:09,920 Speaker 1: way to go. And we've got to get everybody in America, 35 00:02:09,960 --> 00:02:13,040 Speaker 1: I don't care whether you're left or right, up or down, 36 00:02:13,520 --> 00:02:17,200 Speaker 1: get involved and help polish our democracy. Let's restore confidence 37 00:02:17,200 --> 00:02:20,320 Speaker 1: in our institutions of democracy and polished them so that 38 00:02:20,440 --> 00:02:22,600 Speaker 1: the world will recognize it's the right way to go. 39 00:02:22,919 --> 00:02:27,600 Speaker 1: We don't want autocracies or cleptocracies or communism. We want 40 00:02:27,680 --> 00:02:30,560 Speaker 1: the people to have to say that was reaffirmed last 41 00:02:30,639 --> 00:02:32,520 Speaker 1: night the speeches on the floor of the House and 42 00:02:32,520 --> 00:02:35,840 Speaker 1: the Senate after the dust kind of settled and people 43 00:02:35,880 --> 00:02:39,320 Speaker 1: the Congress got back to doing its constitutional business or 44 00:02:39,360 --> 00:02:43,440 Speaker 1: remarkable speeches. They were saying polishized democracy. The people spoke, 45 00:02:43,680 --> 00:02:45,520 Speaker 1: we have a new president. He's going to take the 46 00:02:45,520 --> 00:02:47,919 Speaker 1: oath of office, and we know that as a fact. 47 00:02:48,240 --> 00:02:50,959 Speaker 1: It's not a fraud, it's a fact. Andy, who is 48 00:02:51,000 --> 00:02:55,240 Speaker 1: the leader of the Republican Party today? Well, first of all, 49 00:02:55,480 --> 00:02:59,600 Speaker 1: Donald Trump stole the Republican Party, so yes, he used 50 00:02:59,639 --> 00:03:01,880 Speaker 1: in a view used it. Um. I don't know who 51 00:03:01,880 --> 00:03:04,760 Speaker 1: the leader of our party was is today. I do 52 00:03:05,000 --> 00:03:07,080 Speaker 1: look at the kind of the former leaders of the 53 00:03:07,120 --> 00:03:10,240 Speaker 1: party speaking up to say, do a little soul searching 54 00:03:10,320 --> 00:03:12,320 Speaker 1: and take a look at what's been happening and see 55 00:03:12,320 --> 00:03:14,840 Speaker 1: where you want to go. But I think it started 56 00:03:14,840 --> 00:03:18,720 Speaker 1: with the speeches and the Senate last night, uh, where 57 00:03:18,760 --> 00:03:23,639 Speaker 1: many senators kind of acknowledged the angst of America at 58 00:03:23,639 --> 00:03:26,480 Speaker 1: the same time they said what happened yesterday was not 59 00:03:26,639 --> 00:03:28,920 Speaker 1: good for our democracy. Were much better than that, and 60 00:03:29,000 --> 00:03:31,160 Speaker 1: we can do it. So I think the party is 61 00:03:31,400 --> 00:03:34,080 Speaker 1: it's gonna be. It's gonna be struggling right now. We're 62 00:03:34,120 --> 00:03:37,200 Speaker 1: gonna have to struggle. But I look at outstanding governors 63 00:03:37,240 --> 00:03:41,280 Speaker 1: like Charlie Baker and Chris Sunu this steady. They've done 64 00:03:41,280 --> 00:03:43,400 Speaker 1: a great job even in the midst of the pandemic. 65 00:03:43,480 --> 00:03:46,880 Speaker 1: And Charlie Baker is in a democratic state, Massachusetts, and 66 00:03:46,920 --> 00:03:49,560 Speaker 1: he's doing a remarkable job of leading. And I think 67 00:03:49,600 --> 00:03:52,760 Speaker 1: those people, those leaders helped give definition to the what 68 00:03:52,840 --> 00:03:55,520 Speaker 1: it means to be a Republican. I'm a proud Republican. 69 00:03:55,600 --> 00:03:58,480 Speaker 1: I was not a Trump Republican. Okay, you're a proud Republican. 70 00:03:58,680 --> 00:04:01,320 Speaker 1: With the soul searching that you're talking about, what will 71 00:04:01,400 --> 00:04:06,080 Speaker 1: people find what is the current soul of the Republican Party? Well, 72 00:04:06,080 --> 00:04:08,840 Speaker 1: first of all, I hope that it's a respect for institutions, 73 00:04:09,360 --> 00:04:12,120 Speaker 1: respect for democracy. You know, when I got involved in politics, 74 00:04:12,120 --> 00:04:15,920 Speaker 1: the rug of American politics had more rugged than fringe. 75 00:04:16,000 --> 00:04:18,760 Speaker 1: Today it has more fringe than rug. You really can't 76 00:04:18,800 --> 00:04:21,240 Speaker 1: govern unless you find your way to stand on the 77 00:04:21,320 --> 00:04:23,600 Speaker 1: rug and invite people to be part of a solution. 78 00:04:24,080 --> 00:04:26,080 Speaker 1: And I think that's what we have to look for. 79 00:04:26,240 --> 00:04:29,359 Speaker 1: Which about meeters today are looking to be part of 80 00:04:29,360 --> 00:04:33,200 Speaker 1: a solution, not part of a problem. And that's that's right. 81 00:04:33,240 --> 00:04:35,440 Speaker 1: We have to I think we can find it, Andrew 82 00:04:35,480 --> 00:04:39,400 Speaker 1: card I think of the images across centuries of photographs. 83 00:04:39,440 --> 00:04:42,440 Speaker 1: I think, say, of Queen Mary and the young Queen 84 00:04:42,480 --> 00:04:46,960 Speaker 1: Elizabeth and the George's sixth funeral. You are part of 85 00:04:46,960 --> 00:04:49,800 Speaker 1: one of the most famous photos in history, that of 86 00:04:49,880 --> 00:04:53,919 Speaker 1: your whisper in the ear of President Bush on September eleven. 87 00:04:54,440 --> 00:04:56,920 Speaker 1: If you were to whisper into the ear of President 88 00:04:56,960 --> 00:05:05,720 Speaker 1: Trump this morning, what would you say? The humble acknowledge reality, 89 00:05:07,000 --> 00:05:12,160 Speaker 1: celebrate our constitution and our great democracy, and celebrate how 90 00:05:12,160 --> 00:05:14,680 Speaker 1: many votes you got. Even though you didn't win. You 91 00:05:14,800 --> 00:05:17,280 Speaker 1: got the second most number of votes of anybody who 92 00:05:17,320 --> 00:05:21,080 Speaker 1: ever ran for president. Unfortunately for you, Joe Biden got 93 00:05:21,120 --> 00:05:25,040 Speaker 1: even more votes, but he had. Our democracy showed up 94 00:05:25,279 --> 00:05:29,080 Speaker 1: in unbelievable numbers on election Day in two thousand twenty, 95 00:05:29,400 --> 00:05:32,480 Speaker 1: and we should be celebrating that a record number of 96 00:05:32,520 --> 00:05:35,960 Speaker 1: people showed the vote. And and yes, Donald Trump did 97 00:05:36,000 --> 00:05:39,400 Speaker 1: not win, he lost, but he got a remarkable number 98 00:05:39,400 --> 00:05:42,680 Speaker 1: of votes, and Joe Biden got even more votes, and 99 00:05:42,720 --> 00:05:45,719 Speaker 1: that turned into an electrical college victory that made the difference. 100 00:05:45,839 --> 00:05:49,440 Speaker 1: Andy Kurt, your comment on The Gentleman from Belmont, Mass 101 00:05:49,520 --> 00:05:53,600 Speaker 1: Governor Romney's speech yesterday on the Senate floor. I tell 102 00:05:53,640 --> 00:05:56,479 Speaker 1: you I've always been a fan of Mitt Romney. I 103 00:05:56,520 --> 00:06:01,960 Speaker 1: thought he has been a real steady person who celebrates 104 00:06:01,960 --> 00:06:04,400 Speaker 1: our democracy and invites speed to be part of the solution. 105 00:06:04,640 --> 00:06:07,599 Speaker 1: I was very proud of Rodney yesterday. One final question, 106 00:06:07,720 --> 00:06:10,960 Speaker 1: very quickly unfortunately, Mr card where's the common ground that 107 00:06:11,000 --> 00:06:14,840 Speaker 1: you have with Howard Dean of the Democrats? Look at 108 00:06:15,080 --> 00:06:17,919 Speaker 1: I've known Governor Dean for a long time, all the 109 00:06:17,920 --> 00:06:20,159 Speaker 1: way back when he first became governor of Vermont, and 110 00:06:20,160 --> 00:06:22,279 Speaker 1: I have great respect for him. You know, he and 111 00:06:22,320 --> 00:06:25,479 Speaker 1: I have a lot of reason to disagree on policy, 112 00:06:25,800 --> 00:06:28,359 Speaker 1: but we both celebrate the great country we live in. 113 00:06:28,400 --> 00:06:30,600 Speaker 1: And I actually like Howard Dean and get along well 114 00:06:30,680 --> 00:06:33,440 Speaker 1: with him. But I do remember talking to him literally 115 00:06:33,520 --> 00:06:36,000 Speaker 1: the day that he became the governor of New Hampshire. 116 00:06:36,320 --> 00:06:40,080 Speaker 1: I'm the governor of Vermont, and and UH followed with 117 00:06:40,160 --> 00:06:43,719 Speaker 1: great interest when he was running for president. And remember 118 00:06:44,400 --> 00:06:47,279 Speaker 1: he was a rocket out of the launch pad, but 119 00:06:47,440 --> 00:06:50,920 Speaker 1: he was Andy Carr, thank you so much for joining us. 120 00:06:50,920 --> 00:06:54,080 Speaker 1: A former chief of staff for President or thrilled to 121 00:06:54,120 --> 00:06:59,919 Speaker 1: have him in to give republican perspective and the store 122 00:07:00,360 --> 00:07:04,120 Speaker 1: twenty four hours. And to get perspective, it is important 123 00:07:04,120 --> 00:07:07,560 Speaker 1: to speak to all. There is justice, There is a 124 00:07:07,640 --> 00:07:10,880 Speaker 1: Supreme Court, the House, we had any number of legislative 125 00:07:10,920 --> 00:07:14,840 Speaker 1: types today, and the executive branch. And then there is 126 00:07:14,840 --> 00:07:17,600 Speaker 1: the Pentagon. James de Vitas, a serve nation as an 127 00:07:17,600 --> 00:07:20,840 Speaker 1: admiral with NATO, were thrilled that he could join us 128 00:07:21,480 --> 00:07:25,920 Speaker 1: this morning. Admirals Sdrvidas. There was in the misty memory 129 00:07:26,120 --> 00:07:28,880 Speaker 1: a president who wanted a Fourth of July parade with 130 00:07:29,000 --> 00:07:32,240 Speaker 1: tanks in the street off of the French parade of 131 00:07:32,280 --> 00:07:35,640 Speaker 1: Macroft and others. I've actually witnessed the Friends Parade at 132 00:07:35,680 --> 00:07:41,440 Speaker 1: Something to Behold yesterday. Selected Americans were looking for tanks 133 00:07:41,440 --> 00:07:45,480 Speaker 1: in the street to defend the capital. Explain the Pentagon's 134 00:07:45,680 --> 00:07:49,840 Speaker 1: relationship with the various police forces of our nation's capital. 135 00:07:51,080 --> 00:07:54,440 Speaker 1: Let's start with the fact that the capitol is defended 136 00:07:54,440 --> 00:07:58,880 Speaker 1: by the Capitol Police, which report to the federal government. 137 00:07:59,160 --> 00:08:02,320 Speaker 1: And then within the District of Columbia, of course you 138 00:08:02,400 --> 00:08:06,720 Speaker 1: have the d C Metropolitan Police and the deep back 139 00:08:06,800 --> 00:08:09,240 Speaker 1: up tom as I'm sure you know, is the d 140 00:08:09,400 --> 00:08:14,560 Speaker 1: C National Guard. So there's sort of three layers UH 141 00:08:14,840 --> 00:08:19,200 Speaker 1: policing and security that should have been far better aware 142 00:08:19,240 --> 00:08:22,680 Speaker 1: than they were. What you saw yesterday was a massive failure, 143 00:08:23,560 --> 00:08:27,760 Speaker 1: I would say, at a nine eleven level, at a 144 00:08:27,920 --> 00:08:32,000 Speaker 1: nine eleven level, and there's a Hollywood movies of helicopters 145 00:08:32,160 --> 00:08:35,720 Speaker 1: overhead and somebody that looks a lot like handsome James 146 00:08:35,760 --> 00:08:40,720 Speaker 1: Travitez comes to the rescue. Yesterday wasn't Hollywood. What was 147 00:08:40,760 --> 00:08:46,760 Speaker 1: the optionality that the Pentagon had? They were waiting for 148 00:08:46,960 --> 00:08:50,760 Speaker 1: direction from the Commander in chief because of the unique 149 00:08:50,800 --> 00:08:54,800 Speaker 1: status of the District of Columbia not a state. Normally, 150 00:08:55,080 --> 00:08:59,000 Speaker 1: a state governor could call his or her UH state 151 00:08:59,080 --> 00:09:04,840 Speaker 1: Guard to quell a riot, and that's what we had. Unfortunately, 152 00:09:05,040 --> 00:09:07,000 Speaker 1: it had to come from the Commander in Chief, who 153 00:09:07,040 --> 00:09:11,080 Speaker 1: dithered all day. By all accounts, ultimately it was the 154 00:09:11,200 --> 00:09:14,040 Speaker 1: Vice President of the United States who ordered the acting 155 00:09:14,480 --> 00:09:18,160 Speaker 1: Secretary of Defense to deploy the d C Guard. So 156 00:09:18,400 --> 00:09:22,600 Speaker 1: President Trump was clearly not only inciting the riot but 157 00:09:22,720 --> 00:09:27,000 Speaker 1: then missing an action and trying to resolve it. Admiral 158 00:09:27,559 --> 00:09:30,839 Speaker 1: with your global experience, how do you think our foes 159 00:09:30,880 --> 00:09:35,079 Speaker 1: around the world, those that would, you know, not wish 160 00:09:35,160 --> 00:09:42,000 Speaker 1: us well? How did they view yesterday, high fives, Beijing, Moscow, tyrant, 161 00:09:42,280 --> 00:09:48,480 Speaker 1: pun Yang, caracous, greatest day in recent dictator history watching 162 00:09:48,559 --> 00:09:51,760 Speaker 1: this unfold, and I'll give you two specifics to be 163 00:09:51,840 --> 00:09:57,400 Speaker 1: aware of. Uh Russia will be leveraging this for intelligence 164 00:09:57,440 --> 00:10:01,080 Speaker 1: gathering inside the United States, and they will seek to 165 00:10:01,240 --> 00:10:05,920 Speaker 1: prolong this agony by getting into the social networks, getting 166 00:10:05,920 --> 00:10:08,680 Speaker 1: into our cyber nets, as we saw them do just 167 00:10:09,160 --> 00:10:13,839 Speaker 1: recently in the fire Eye hack China. I think, unfortunately, 168 00:10:13,960 --> 00:10:18,080 Speaker 1: may miscalculate and decide this might be a good time 169 00:10:18,120 --> 00:10:21,400 Speaker 1: to do something pretty dramatic in Asia. Could that be 170 00:10:22,240 --> 00:10:25,000 Speaker 1: leaning in very hard on Taiwan. Could it be further 171 00:10:25,120 --> 00:10:28,480 Speaker 1: crackdowns in Hong Kong? They just rounded up yet another 172 00:10:28,600 --> 00:10:32,880 Speaker 1: round of the protesters in Hong Kong. Makes it pretty 173 00:10:32,920 --> 00:10:36,480 Speaker 1: difficult for us as we turn to our allies, partners, 174 00:10:36,480 --> 00:10:40,679 Speaker 1: and friends to generate a team that can stand in 175 00:10:40,720 --> 00:10:43,480 Speaker 1: the face of this. When we can't even defend our 176 00:10:43,520 --> 00:10:48,240 Speaker 1: own capital. It's a disgraceful day for the United States. So, Admiral, 177 00:10:48,520 --> 00:10:52,680 Speaker 1: the average serviceman or woman serving on the high seas 178 00:10:52,840 --> 00:10:55,719 Speaker 1: or some far flung army post, how do you think 179 00:10:55,760 --> 00:10:58,960 Speaker 1: they're processing what they saw yesterday? Many of them are 180 00:10:59,040 --> 00:11:02,280 Speaker 1: just you know, kind of waking up and seeing the images. Well, 181 00:11:02,320 --> 00:11:05,559 Speaker 1: let's face one fundamental fact about those in the armed forces, 182 00:11:05,600 --> 00:11:09,840 Speaker 1: their volunteers, who swear an oath to the Constitution of 183 00:11:09,880 --> 00:11:13,360 Speaker 1: the United States to support and defend that constitution. What 184 00:11:13,480 --> 00:11:17,560 Speaker 1: they saw yesterday was a blatant attempt by tens of 185 00:11:17,720 --> 00:11:23,040 Speaker 1: thousands of rioters incited by the President, to interrupt that 186 00:11:23,200 --> 00:11:27,360 Speaker 1: constitutional process. It's very significant that this occurred not just 187 00:11:27,559 --> 00:11:30,720 Speaker 1: on any given Tuesday, but on the days which were 188 00:11:30,840 --> 00:11:37,200 Speaker 1: certifying the democratic results of the entirely legitimate election. So 189 00:11:37,480 --> 00:11:41,280 Speaker 1: I think the average serviceman and woman is shaking their 190 00:11:41,320 --> 00:11:44,600 Speaker 1: head at disbelief at this threat to the constitution. I 191 00:11:44,720 --> 00:11:47,400 Speaker 1: know they are, in fact. And one final questioned an 192 00:11:47,440 --> 00:11:51,640 Speaker 1: updated on your thoughts is uh, the domination of General 193 00:11:51,800 --> 00:11:55,559 Speaker 1: Lloyd Austin moves forward to be Defense Secretary. Some controversy there. 194 00:11:55,559 --> 00:11:58,920 Speaker 1: You've written about it. Give us an update. Um, he 195 00:11:59,040 --> 00:12:02,880 Speaker 1: will be confirmed. We ought to, as a general proposition, 196 00:12:03,000 --> 00:12:06,680 Speaker 1: look for individuals to lead the Department of Defense who 197 00:12:06,679 --> 00:12:09,000 Speaker 1: have been out of uniform for a long time. But 198 00:12:09,120 --> 00:12:12,080 Speaker 1: General Austin brings a great deal of experience in the 199 00:12:12,080 --> 00:12:15,719 Speaker 1: Middle East. I know him personally, extremely well. He's a 200 00:12:15,800 --> 00:12:19,640 Speaker 1: rock solid professional. He will be confirmed. Um, we need 201 00:12:19,679 --> 00:12:22,360 Speaker 1: to get the new team in place across the board 202 00:12:22,720 --> 00:12:25,560 Speaker 1: as quickly as possible. The next thirteen days are going 203 00:12:25,600 --> 00:12:28,880 Speaker 1: to be dangerous for this country until we do. James Trevitus, 204 00:12:28,920 --> 00:12:31,120 Speaker 1: thank you so much to Emeralds Trevinus of course, with 205 00:12:31,800 --> 00:12:34,120 Speaker 1: among others of Carlisle group. I can't say enough about 206 00:12:34,120 --> 00:12:36,120 Speaker 1: his books. Maybe it's a good time, after what we 207 00:12:36,160 --> 00:12:40,400 Speaker 1: saw yesterday to look at his leader's bookshop bookshelf. Further, 208 00:12:40,559 --> 00:12:44,800 Speaker 1: it was a wonderful, wonderful, wonderful set of about fifty 209 00:12:44,840 --> 00:12:52,120 Speaker 1: books from people like General Austin as well. The divise 210 00:12:52,240 --> 00:12:55,080 Speaker 1: between a good senator from Texas and the gentleman from 211 00:12:55,080 --> 00:12:58,679 Speaker 1: New York State, Cruz and Schumer going at it yesterday. 212 00:12:59,160 --> 00:13:02,280 Speaker 1: I'm sure many view on radio and TV observe so 213 00:13:02,360 --> 00:13:05,800 Speaker 1: much of this moment just extraordinary, the back and forth 214 00:13:05,840 --> 00:13:09,400 Speaker 1: and of course off camera, some real emotions. Someone used 215 00:13:09,440 --> 00:13:13,520 Speaker 1: to the emotion of politics is Kathy Hocle. She's from Buffalo, 216 00:13:13,679 --> 00:13:16,560 Speaker 1: New York. She is the Lieutenant Governor of New York 217 00:13:16,559 --> 00:13:20,120 Speaker 1: and joins us from a lockdown New York City as well. 218 00:13:20,559 --> 00:13:23,800 Speaker 1: Governor Hocle, we have not touched the pandemic since about 219 00:13:23,880 --> 00:13:28,800 Speaker 1: three pm yesterday afternoon. How locked down is your New 220 00:13:28,880 --> 00:13:33,720 Speaker 1: York City right now? Well, basically, I would say the 221 00:13:33,760 --> 00:13:36,800 Speaker 1: restaurants are still not open. We have I had outdoor 222 00:13:36,840 --> 00:13:38,959 Speaker 1: dining last fight, had a hammoger on a street next 223 00:13:39,000 --> 00:13:41,120 Speaker 1: to a heater, so that is available to people who 224 00:13:41,120 --> 00:13:44,520 Speaker 1: are hungry. Not ideal, but it's in recognition that we're 225 00:13:44,559 --> 00:13:47,320 Speaker 1: doing everything we can to keep the infection right down. 226 00:13:47,320 --> 00:13:50,079 Speaker 1: If you just see your neighboring states were surrounded by 227 00:13:50,120 --> 00:13:52,480 Speaker 1: states with the numbers of the go up. You clearly 228 00:13:52,600 --> 00:13:54,880 Speaker 1: can't go to a Broadway play. You're not going to 229 00:13:54,720 --> 00:13:56,800 Speaker 1: go to any man yet. But I didn't get the 230 00:13:56,840 --> 00:13:59,720 Speaker 1: sense of lockdown because people are still working here still, 231 00:13:59,760 --> 00:14:02,760 Speaker 1: you know, still a live city. So I think lockdown 232 00:14:02,840 --> 00:14:05,120 Speaker 1: over the states where we are right now, Lieutenant Governor, 233 00:14:05,200 --> 00:14:10,360 Speaker 1: we cannot ignore Washington. Matthew Pottinger resigning your midnight from 234 00:14:10,400 --> 00:14:13,920 Speaker 1: the Trump White House, and moments ago se NBC mentioning 235 00:14:13,960 --> 00:14:19,000 Speaker 1: that Mr Mulvaney will resign from a Trump administration. You 236 00:14:19,040 --> 00:14:23,160 Speaker 1: are in the executive branch. When you d people an 237 00:14:23,160 --> 00:14:29,120 Speaker 1: executive branch, Lieutenant Governor, how do you move forward? You 238 00:14:29,280 --> 00:14:32,040 Speaker 1: just hold on. You have people around you, hopefully put 239 00:14:32,080 --> 00:14:35,000 Speaker 1: the interest of this country first and do everything they 240 00:14:35,040 --> 00:14:40,000 Speaker 1: can to personally contain Donald Trump until sanity reigns once 241 00:14:40,000 --> 00:14:42,440 Speaker 1: again in this country and Joe Biden takes his zot 242 00:14:42,520 --> 00:14:45,360 Speaker 1: of office on January Secies. We have to get to 243 00:14:45,400 --> 00:14:48,320 Speaker 1: that date. It seems like an eternity from now, but 244 00:14:48,440 --> 00:14:50,440 Speaker 1: if we can just get the people around him who 245 00:14:50,520 --> 00:14:53,560 Speaker 1: understand that the verity of what he's done, inciting people 246 00:14:53,560 --> 00:14:57,560 Speaker 1: to riot and leading an insurruction, they have to understand 247 00:14:57,600 --> 00:15:00,360 Speaker 1: that there are consequences in our country. We have a 248 00:15:00,400 --> 00:15:03,160 Speaker 1: constitution that must be adhered to. So I am an 249 00:15:03,160 --> 00:15:05,520 Speaker 1: executive branch. This will never happen in the state of 250 00:15:05,560 --> 00:15:09,000 Speaker 1: New York because we would never elect someone who has 251 00:15:09,240 --> 00:15:12,240 Speaker 1: is destructive of our democracy as someone like Donald Trump. 252 00:15:12,240 --> 00:15:14,760 Speaker 1: But that's what happened. He lost the election. I think 253 00:15:14,800 --> 00:15:17,040 Speaker 1: that's the message around the world. He did not win, 254 00:15:17,640 --> 00:15:19,400 Speaker 1: and in just a few short weeks we're going to 255 00:15:19,480 --> 00:15:23,400 Speaker 1: have Democrats who have who put the constitution first, apparently 256 00:15:23,440 --> 00:15:26,800 Speaker 1: over what Republicans are doing running the Senate, running the House, 257 00:15:26,800 --> 00:15:29,320 Speaker 1: and now running the White House. So well have era 258 00:15:29,440 --> 00:15:32,600 Speaker 1: that's going to allow us to sweep clean all the 259 00:15:32,680 --> 00:15:34,920 Speaker 1: vestiges of Donald Trump and what he has done to 260 00:15:34,960 --> 00:15:38,400 Speaker 1: our nation. Katthew, how much will a Senator Schumer led 261 00:15:38,640 --> 00:15:41,560 Speaker 1: Senate help in the New York State budget? The New 262 00:15:41,640 --> 00:15:47,320 Speaker 1: York State prospects going forward? Unbelievably, It's going to be great, Lisa, 263 00:15:47,440 --> 00:15:49,640 Speaker 1: And what we talked about, you and I had this conversation. 264 00:15:50,040 --> 00:15:52,480 Speaker 1: It's like twentieth visit on your on your show, and 265 00:15:52,520 --> 00:15:54,320 Speaker 1: we talked about what's it going to take for New 266 00:15:54,400 --> 00:15:56,520 Speaker 1: York to be able to come back. We have a 267 00:15:56,800 --> 00:15:59,520 Speaker 1: fifteen billion dollar hole. We need that from the federal 268 00:15:59,560 --> 00:16:02,920 Speaker 1: government and Senator Schumer, who knows New York State better 269 00:16:02,920 --> 00:16:05,960 Speaker 1: than anybody. He goes all sixty two counties just like 270 00:16:06,000 --> 00:16:08,080 Speaker 1: I do. He knows what this state need that he'll 271 00:16:08,120 --> 00:16:10,680 Speaker 1: be in a position of power. Now. It's not just 272 00:16:10,880 --> 00:16:12,840 Speaker 1: wishing we could get this done, it is being able 273 00:16:12,880 --> 00:16:16,600 Speaker 1: to deliver with President Joe Biden, who also understands you 274 00:16:16,640 --> 00:16:19,200 Speaker 1: can't starve the state and local governments when you're trying 275 00:16:19,200 --> 00:16:23,000 Speaker 1: to get a vaccine in the arms of three million people, 276 00:16:23,040 --> 00:16:26,280 Speaker 1: not once, but twice. So we need more resources to 277 00:16:26,400 --> 00:16:29,560 Speaker 1: offset our our losses, our financial hits that we took 278 00:16:29,800 --> 00:16:31,880 Speaker 1: in order for us to be able to fund programs 279 00:16:31,920 --> 00:16:34,840 Speaker 1: like the vaccinine vaccine rollout, which is going to stave 280 00:16:34,960 --> 00:16:37,200 Speaker 1: this country, and we get that into people's arms sooner, 281 00:16:37,560 --> 00:16:39,680 Speaker 1: the sooner we come back, the sooner we can sooner 282 00:16:39,680 --> 00:16:41,760 Speaker 1: we can supercharge our econmy So it's going to be 283 00:16:41,880 --> 00:16:44,360 Speaker 1: very good having him that position. So, Cathy, where are 284 00:16:44,400 --> 00:16:47,000 Speaker 1: we in terms of the vaccination schedule? When will you 285 00:16:47,080 --> 00:16:51,440 Speaker 1: and I be able to go and get inoculated? At 286 00:16:51,520 --> 00:16:53,320 Speaker 1: least I'm gonna assume that you are under the age 287 00:16:53,320 --> 00:16:55,200 Speaker 1: of seventy five, so you'll not be in one A. 288 00:16:55,280 --> 00:17:02,800 Speaker 1: You're not in one bould you know I would disabuse 289 00:17:02,880 --> 00:17:06,280 Speaker 1: you of your notion, Kathy, carryad Tom you will be 290 00:17:06,320 --> 00:17:11,320 Speaker 1: in the same categories I am. I'm not being a 291 00:17:11,359 --> 00:17:18,399 Speaker 1: very good politician. You're killing it. Republican in New York, Please, 292 00:17:19,440 --> 00:17:22,640 Speaker 1: we have one A people, the frontline health scare work 293 00:17:22,720 --> 00:17:25,320 Speaker 1: is still being vaccinated in our hospitals. We've tripled the 294 00:17:25,400 --> 00:17:27,520 Speaker 1: number of vaccines that have gone out just in the 295 00:17:27,600 --> 00:17:30,200 Speaker 1: last week. So it all is a function of supply, 296 00:17:30,960 --> 00:17:35,520 Speaker 1: so we get more vaccines where government right now, Kathy, 297 00:17:35,520 --> 00:17:38,080 Speaker 1: I'm gonna cut you, Kathy, I'm gonna cut you off. 298 00:17:38,119 --> 00:17:41,440 Speaker 1: This is so important. Peter Hotez of Baylor College of 299 00:17:41,520 --> 00:17:45,000 Speaker 1: Medicine says, we need to open up Yankee Stadium, and 300 00:17:45,040 --> 00:17:48,200 Speaker 1: the only way we can do that is money. Money, money. 301 00:17:48,480 --> 00:17:53,239 Speaker 1: You Republicans, Democrats in every state don't have it. What 302 00:17:53,320 --> 00:17:55,359 Speaker 1: do you need from the federal government to do a 303 00:17:55,520 --> 00:18:01,280 Speaker 1: Hotez Yankee Stadium vaccination program? Oh, we we will do that. 304 00:18:01,320 --> 00:18:03,080 Speaker 1: We're going to open up the Javits Center I we 305 00:18:03,080 --> 00:18:07,080 Speaker 1: can do. We already have plans for this time. We 306 00:18:07,119 --> 00:18:11,560 Speaker 1: have thirties six hundred and seventy two locations identified. We 307 00:18:11,680 --> 00:18:14,920 Speaker 1: simply have to get to our first category of healthcare 308 00:18:14,960 --> 00:18:18,280 Speaker 1: workers done in a priority. Are they go first when 309 00:18:18,280 --> 00:18:22,000 Speaker 1: it comes time for mass vaccinations. There is no limit 310 00:18:22,080 --> 00:18:23,800 Speaker 1: to the locations We're going to do this. It will 311 00:18:23,840 --> 00:18:27,919 Speaker 1: be massive locations. What funding you need from the Biden administration? 312 00:18:28,000 --> 00:18:31,800 Speaker 1: Come on, you've got democratic president right now. You need 313 00:18:31,880 --> 00:18:36,240 Speaker 1: one billion to get this done. To get that done, 314 00:18:36,280 --> 00:18:38,320 Speaker 1: but also to offset the loss and revenues so we 315 00:18:38,400 --> 00:18:40,359 Speaker 1: can continue to fund these workers. We don't want to 316 00:18:40,400 --> 00:18:44,560 Speaker 1: have cutbacks or police, law enforcement healthcare workers, which is 317 00:18:44,600 --> 00:18:48,800 Speaker 1: what we're facing in our budget. In March, Lieutenant Governor Okay, 318 00:18:48,800 --> 00:18:53,679 Speaker 1: this this has been an incredibly important conversation. None of 319 00:18:53,720 --> 00:18:59,399 Speaker 1: it matters Bills cults first time since Can your Bills 320 00:18:59,480 --> 00:19:03,240 Speaker 1: keep it on? Of course they can. The momentum is 321 00:19:03,320 --> 00:19:05,840 Speaker 1: with us. You saw the energy and guess what we're 322 00:19:05,840 --> 00:19:08,720 Speaker 1: going to actually have fans in the stand. We've accomplished 323 00:19:08,720 --> 00:19:12,880 Speaker 1: being impossible this year, an amazing season, lifting the spirits 324 00:19:12,880 --> 00:19:15,200 Speaker 1: of people, not just in Buffalo but all over the state. 325 00:19:15,240 --> 00:19:17,440 Speaker 1: And I'm going to say this is America's due team. 326 00:19:17,480 --> 00:19:20,040 Speaker 1: So America will be rooting for the Buffalo Bills this 327 00:19:20,119 --> 00:19:23,879 Speaker 1: weekend as we have our first first playoff game at 328 00:19:23,920 --> 00:19:26,760 Speaker 1: home in twenty five years. So I'm really energized by this. 329 00:19:26,800 --> 00:19:29,280 Speaker 1: It's going to be a great game, Governor, no doubt. 330 00:19:29,320 --> 00:19:33,359 Speaker 1: In the seventh row fifty yard line as well. Cathy Yako, 331 00:19:33,480 --> 00:19:38,360 Speaker 1: thank you so much, greatly appreciate that. Uh this one 332 00:19:40,280 --> 00:19:43,480 Speaker 1: the Russell two thousand, John from Capri emails in and says, 333 00:19:43,520 --> 00:19:49,399 Speaker 1: talk about Penn National Gaming, Caesar's entertainment plug, power Sun Run. 334 00:19:49,680 --> 00:19:53,760 Speaker 1: How about Darling Ingredients up twenty percent per year, A 335 00:19:53,920 --> 00:19:58,120 Speaker 1: moonshot coming off of March for Darling Ingredients of Irvine 336 00:19:58,160 --> 00:20:02,320 Speaker 1: Tech or Irving, Texas ten thousand employees. Good morning, Mr Stewart, 337 00:20:02,440 --> 00:20:08,080 Speaker 1: Randall Stewart and and Darling Ingredients. They collect animal processing 338 00:20:08,200 --> 00:20:12,600 Speaker 1: by products and used restaurant cookie oil. That's the moon 339 00:20:12,680 --> 00:20:15,200 Speaker 1: shot of the Russell two thousand. That's the moon shot. 340 00:20:15,240 --> 00:20:16,879 Speaker 1: Had not heard about it. You just sent it to me. 341 00:20:16,920 --> 00:20:19,160 Speaker 1: Look at it. This has got a ten billion dollar 342 00:20:19,440 --> 00:20:22,639 Speaker 1: market cap, Tom So this is this has been around, 343 00:20:22,680 --> 00:20:28,520 Speaker 1: it's it's sizeable, and they're in the animal processing byproduct business. 344 00:20:28,520 --> 00:20:32,560 Speaker 1: Tello meat, bone meal, all the good things John Gallab 345 00:20:32,640 --> 00:20:34,920 Speaker 1: uses every day. John Gallab with credit sweez. This is 346 00:20:34,920 --> 00:20:38,280 Speaker 1: an important conversation because of his view to two thousand 347 00:20:38,359 --> 00:20:40,680 Speaker 1: twenty one, John, before we get to tech, in your 348 00:20:40,760 --> 00:20:43,760 Speaker 1: view on the bigger market, how do you adapt and 349 00:20:43,800 --> 00:20:48,919 Speaker 1: adjust to a small cap surge? You know, we we 350 00:20:49,000 --> 00:20:52,240 Speaker 1: just did a note on this. In the consumer space, 351 00:20:52,400 --> 00:20:56,880 Speaker 1: the small caps are a much better plays on reopening. 352 00:20:57,160 --> 00:20:59,919 Speaker 1: And if you look at UM, you know, you know, 353 00:21:00,119 --> 00:21:04,320 Speaker 1: like for consumer discretionary UM, the big cap you know, 354 00:21:04,400 --> 00:21:07,960 Speaker 1: Internet retailers are are you know, very different than those 355 00:21:08,600 --> 00:21:11,760 Speaker 1: mall retailers and restaurants and hotels that make up the 356 00:21:11,800 --> 00:21:15,040 Speaker 1: small cap universe. And that's just one example on where 357 00:21:15,240 --> 00:21:18,320 Speaker 1: I think there's real solid fundamentals here in the near term. 358 00:21:18,480 --> 00:21:20,800 Speaker 1: I've got to get to your call. John, it's literally 359 00:21:20,840 --> 00:21:23,480 Speaker 1: an outlier. I believe you told us the last time 360 00:21:23,520 --> 00:21:27,919 Speaker 1: you visited stay with tech. Is that true? It was? 361 00:21:27,960 --> 00:21:31,720 Speaker 1: And you know, we we just um today tom um 362 00:21:32,480 --> 00:21:35,520 Speaker 1: up our number for the broad market. But we also 363 00:21:35,840 --> 00:21:38,560 Speaker 1: took what we call tech plus that all that broadly 364 00:21:38,600 --> 00:21:42,800 Speaker 1: defined tech basket from overweight to neutral. And I did that. 365 00:21:42,920 --> 00:21:46,280 Speaker 1: I did that with such pain because I'm such a 366 00:21:46,320 --> 00:21:49,680 Speaker 1: believer that over the long run you want to ride 367 00:21:49,680 --> 00:21:52,720 Speaker 1: this trade hard reopening. I think they're gonna be a 368 00:21:52,760 --> 00:21:54,399 Speaker 1: source of capital and this is what we love. Folks 369 00:21:54,400 --> 00:21:57,040 Speaker 1: have Bloomberg surveillance, real news from a major house, John 370 00:21:57,040 --> 00:22:01,400 Speaker 1: Galbin Credit Suite. With that shift, do you mean, particularly 371 00:22:01,400 --> 00:22:05,320 Speaker 1: if it's a taxable event, do you cash it in 372 00:22:06,040 --> 00:22:09,520 Speaker 1: or do you just reallocate new funds away from whatever 373 00:22:09,560 --> 00:22:15,000 Speaker 1: your tech disbelief is. You know, most of our clients 374 00:22:15,200 --> 00:22:18,560 Speaker 1: are running tax except um money, so they're not worrying 375 00:22:18,560 --> 00:22:22,240 Speaker 1: about pension plan or endowment. If you're an individual, the 376 00:22:22,840 --> 00:22:24,639 Speaker 1: if I believe that you're gonna want to be in 377 00:22:24,680 --> 00:22:26,320 Speaker 1: tech for the next two or three years, you don't 378 00:22:26,320 --> 00:22:28,439 Speaker 1: want to pay a lot of taxes to make that 379 00:22:28,480 --> 00:22:32,120 Speaker 1: switch in your portfolio. However, if you have new funds 380 00:22:32,119 --> 00:22:36,560 Speaker 1: today allocative to things that are more cyclical, um, that's 381 00:22:36,560 --> 00:22:38,199 Speaker 1: the time you get paid over the new ye like 382 00:22:38,240 --> 00:22:41,680 Speaker 1: the Boston Red Sox. So Jonathan. So if if I'm 383 00:22:41,960 --> 00:22:43,760 Speaker 1: maybe taking a little off the table in tech or 384 00:22:43,760 --> 00:22:47,640 Speaker 1: reallocating some capital, am I jumping both feet into that 385 00:22:47,840 --> 00:22:53,359 Speaker 1: cyclical reopening trade? Well maybe maybe maybe let me like 386 00:22:53,480 --> 00:22:56,000 Speaker 1: kind of twist your question a little bit. Where do 387 00:22:56,040 --> 00:22:59,879 Speaker 1: you play the reopening trade most effectively? And I don't 388 00:23:00,000 --> 00:23:01,639 Speaker 1: think it's the suff It's not in the stuff that 389 00:23:01,680 --> 00:23:03,920 Speaker 1: I just upgraded. That the areas that think they're gonna 390 00:23:03,920 --> 00:23:06,280 Speaker 1: be a big win are actually gonna be in healthcare 391 00:23:06,400 --> 00:23:10,080 Speaker 1: and financials. And let me explain quickly why for each um, 392 00:23:10,160 --> 00:23:12,000 Speaker 1: a lot of us have not been to the dentist 393 00:23:12,200 --> 00:23:15,200 Speaker 1: or to a doctor. And when we go back out there, Um, 394 00:23:15,240 --> 00:23:18,359 Speaker 1: you don't think about a healthcare company as being cyclical, 395 00:23:19,119 --> 00:23:21,760 Speaker 1: but there's gonna be companies that process your your blood 396 00:23:21,800 --> 00:23:24,560 Speaker 1: tests and and you know, or people who have held 397 00:23:24,600 --> 00:23:27,800 Speaker 1: up putting braces on their kids. All those kinds of 398 00:23:27,840 --> 00:23:31,680 Speaker 1: things get a big cyclical reopening jump. Even though they're 399 00:23:31,680 --> 00:23:35,240 Speaker 1: not really cyclical companies. The banks. If you have interest 400 00:23:35,280 --> 00:23:37,320 Speaker 1: rates move up a little like they did today, if 401 00:23:37,359 --> 00:23:40,399 Speaker 1: the credit environment improved because of these checks, we're all 402 00:23:40,440 --> 00:23:43,320 Speaker 1: gonna get people gonna pay their bills with that, those 403 00:23:43,359 --> 00:23:46,760 Speaker 1: are all really great for the banks. So while I'm 404 00:23:46,800 --> 00:23:51,040 Speaker 1: moving up your industrials and materials and energy, I still 405 00:23:51,160 --> 00:23:56,320 Speaker 1: rather be in financials and healthcare in this environment, all right, Johnathan, 406 00:23:56,320 --> 00:23:58,640 Speaker 1: want the questions to have about this rotation trade which 407 00:23:58,640 --> 00:24:01,320 Speaker 1: has worked so well, and the folks that were on it, 408 00:24:01,400 --> 00:24:05,240 Speaker 1: you know, kind of August September, We're suppression is kind 409 00:24:05,280 --> 00:24:07,680 Speaker 1: of the legs that it has. I know, I could 410 00:24:07,680 --> 00:24:10,199 Speaker 1: buy Amazon and Apple and stick them away for a 411 00:24:10,359 --> 00:24:13,200 Speaker 1: decade and not have to think about the story. What's 412 00:24:13,280 --> 00:24:19,720 Speaker 1: the Historically, how long does this rotation into cyclicals typically lasted? Well, 413 00:24:19,760 --> 00:24:21,600 Speaker 1: you know, it's it's a funny thing if if you 414 00:24:21,680 --> 00:24:25,080 Speaker 1: take a look at since let's say September one, um 415 00:24:25,160 --> 00:24:28,280 Speaker 1: and values beaten growth over that period, it all came 416 00:24:28,280 --> 00:24:31,080 Speaker 1: down to four days. Only the four days were the 417 00:24:31,160 --> 00:24:33,520 Speaker 1: three days when you got big drug announcements from you know, 418 00:24:33,600 --> 00:24:36,439 Speaker 1: Fiser and Maderna and Astra Zeneca, and the day that 419 00:24:36,520 --> 00:24:40,119 Speaker 1: Janet Yellen was selected to head Treasury by by Joe Biden. 420 00:24:40,440 --> 00:24:42,200 Speaker 1: If you took those four days out, there's no value 421 00:24:42,280 --> 00:24:44,760 Speaker 1: rotation here whatsoever. And I do think there's gonna be 422 00:24:44,800 --> 00:24:48,639 Speaker 1: a really a a cyclical trade. But it's going to 423 00:24:48,720 --> 00:24:51,440 Speaker 1: be when you and I go and get airline tickets 424 00:24:51,480 --> 00:24:54,280 Speaker 1: for our summer vacation because we realized that we're gonna 425 00:24:54,280 --> 00:24:57,520 Speaker 1: have we we have been vascinated. That's the that's the 426 00:24:57,600 --> 00:25:00,280 Speaker 1: mother of all trades. And the reason that I put 427 00:25:00,280 --> 00:25:03,960 Speaker 1: this the the made the chain today is how close 428 00:25:04,000 --> 00:25:06,960 Speaker 1: do you want to get to that May June July 429 00:25:07,240 --> 00:25:10,919 Speaker 1: vaccine date for yourself before you rotate? The market's going 430 00:25:10,960 --> 00:25:13,640 Speaker 1: to move ahead of that. My call today was don't 431 00:25:13,640 --> 00:25:15,760 Speaker 1: be too cute, don't wait to the last minute, because 432 00:25:15,760 --> 00:25:17,359 Speaker 1: somebody else will have made money on the trade. And 433 00:25:17,400 --> 00:25:20,000 Speaker 1: this is really really important, John, I mean, the market 434 00:25:20,040 --> 00:25:22,879 Speaker 1: always discounting them out. How far out is the market 435 00:25:22,880 --> 00:25:27,040 Speaker 1: discounting now July of this year or next year or 436 00:25:27,040 --> 00:25:30,360 Speaker 1: the year following. Where's the reach now, the mental reach 437 00:25:30,800 --> 00:25:36,160 Speaker 1: of the market, you know, Tom, it's the single biggest 438 00:25:36,240 --> 00:25:38,600 Speaker 1: question that we're getting from the smartest headge from guys, 439 00:25:38,640 --> 00:25:41,480 Speaker 1: who do you think how long do you wait. How 440 00:25:41,480 --> 00:25:44,480 Speaker 1: long do you wait before that July event before the 441 00:25:44,520 --> 00:25:46,720 Speaker 1: market's going to discount it? Three months? Six months? And 442 00:25:46,760 --> 00:25:48,800 Speaker 1: if you're going to try to get too cute and 443 00:25:48,840 --> 00:25:52,199 Speaker 1: try to time it perfectly, you're gonna miss it. And 444 00:25:52,240 --> 00:25:55,480 Speaker 1: if you wait for people to actually buy their concert 445 00:25:55,480 --> 00:25:58,760 Speaker 1: tickets for a music festival this summer, the trade is 446 00:25:58,800 --> 00:26:01,560 Speaker 1: already over. So that's why we put it in now. 447 00:26:01,680 --> 00:26:05,520 Speaker 1: Even though I'm probably a little bit early, I just 448 00:26:05,560 --> 00:26:07,200 Speaker 1: think I have no choice but to but to get 449 00:26:07,240 --> 00:26:10,200 Speaker 1: in early, all right, just gives a quick overview of evaluation. 450 00:26:10,280 --> 00:26:12,119 Speaker 1: And we've seen this market just rock it up from 451 00:26:12,160 --> 00:26:17,119 Speaker 1: the March lows without a commensurate increase in earnings. Should 452 00:26:17,320 --> 00:26:21,359 Speaker 1: should I be concerned? Um? No, I don't think it 453 00:26:21,359 --> 00:26:23,840 Speaker 1: should be concerned evaluation. But here's what you have. At 454 00:26:23,880 --> 00:26:27,000 Speaker 1: the beginning of the year, um the year last year 455 00:26:27,400 --> 00:26:29,560 Speaker 1: you had, the market was trading at an eighteen multiple. 456 00:26:29,640 --> 00:26:31,159 Speaker 1: At the end of the year, it was trading at 457 00:26:31,160 --> 00:26:34,080 Speaker 1: a twenty two and a half um. The peak in 458 00:26:34,119 --> 00:26:37,600 Speaker 1: the internet period was like is So this is a 459 00:26:37,680 --> 00:26:40,560 Speaker 1: very high multiple, and it's also moved a lot. There's 460 00:26:40,560 --> 00:26:42,919 Speaker 1: a whole bunch of reasons why I think that these 461 00:26:43,000 --> 00:26:45,679 Speaker 1: multiples are gonna stay in overtime drift even higher. The 462 00:26:45,720 --> 00:26:48,040 Speaker 1: first thing is there's a lot more tech in the 463 00:26:48,080 --> 00:26:50,000 Speaker 1: market today than in the past, and those are higher 464 00:26:50,080 --> 00:26:53,159 Speaker 1: pe names. It's just a mix of companies, that's number one. 465 00:26:53,240 --> 00:26:56,320 Speaker 1: Number two, companies are doing a better job of generating 466 00:26:56,400 --> 00:26:59,240 Speaker 1: cash flow from every dollar of earnings in sale, so 467 00:26:59,320 --> 00:27:02,440 Speaker 1: you're actually getting more money back from companies over time 468 00:27:02,480 --> 00:27:05,679 Speaker 1: when you invested them. And number three, interest rates are 469 00:27:05,680 --> 00:27:08,199 Speaker 1: are a lot lower. And whether you look at that 470 00:27:08,280 --> 00:27:11,080 Speaker 1: as a cost of capital for company or lack of 471 00:27:11,080 --> 00:27:15,160 Speaker 1: an alternative, all of those things say that multiples are 472 00:27:15,200 --> 00:27:18,440 Speaker 1: going to stay in the twenties, probably drift higher over interesting. 473 00:27:18,520 --> 00:27:21,840 Speaker 1: John Gold, thank you so much. With Cardio Suite's hugely valuable. 474 00:27:22,320 --> 00:27:26,159 Speaker 1: Uh there. Thanks for listening to the Bloomberg Surveillance podcast. 475 00:27:26,520 --> 00:27:31,439 Speaker 1: Subscribe and listen to interviews on Apple Podcasts, SoundCloud, or 476 00:27:31,600 --> 00:27:35,920 Speaker 1: whichever podcast platform you prefer. I'm on Twitter at Tom 477 00:27:36,040 --> 00:27:39,920 Speaker 1: Keene before the podcast, you can always catch us worldwide. 478 00:27:40,359 --> 00:27:41,440 Speaker 1: I'm Bloomberg Radio