WEBVTT - Ukraine, Markets, And Climate Disclosures 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.520 with essential market moving news. Find the Bloomberg Markets podcast 0:00:15.560 --> 0:00:18.479 called Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:23.040 at Bloomberg dot com slash podcast. This is the Big Take, 0:00:23.239 --> 0:00:27.040 the best of Bloomberg's in depth original reporting from around 0:00:27.040 --> 0:00:29.920 the globe. This is a really fast moving story that's 0:00:30.080 --> 0:00:33.760 caused a lot of outrage among investors. This is so fascinating. 0:00:33.800 --> 0:00:36.320 The market shotdown in a way it's never done before. 0:00:36.440 --> 0:00:39.440 That's gonna have consequences for years to come. The Big 0:00:39.520 --> 0:00:45.120 Take on Bloomberg Radio. Well night, Paul and I love 0:00:45.159 --> 0:00:47.720 these Big Take stories every day, but we have an 0:00:47.720 --> 0:00:51.000 extra special one today because our editor in chief wrote 0:00:51.000 --> 0:00:54.120 at John Micklethwaite joins us. He wrote this together with 0:00:54.200 --> 0:00:58.560 Adrian wool Ridge old Ridge, which is the West must 0:00:58.640 --> 0:01:01.240 save Globalization. I how they recommend checking it out on 0:01:01.320 --> 0:01:04.319 ani Big Take on the Bloomburger Checking it out online. John, 0:01:04.360 --> 0:01:05.959 great to get you on to talk a little bit 0:01:06.000 --> 0:01:09.440 about this. One of the things that you um to 0:01:09.760 --> 0:01:14.199 pose it is that there will be a decoupling here, 0:01:15.000 --> 0:01:19.280 a breakup essentially of two but maybe three different blocks, 0:01:19.280 --> 0:01:22.880 but that the autocratic block the Russians and the Chinese 0:01:23.280 --> 0:01:27.880 are going to accelerate. Past are divided democracies. Why do 0:01:27.920 --> 0:01:31.400 you think that that they all do well after this breakup? 0:01:33.240 --> 0:01:36.680 I say, well, go back a bit. I think that 0:01:36.880 --> 0:01:40.080 the you know that there is already a breakup happening. 0:01:40.319 --> 0:01:42.560 There is a break you know, there's a straightforward the 0:01:42.640 --> 0:01:45.880 coupling going on, which I suppose you can argue a 0:01:45.920 --> 0:01:50.120 mix between China and Donald Trump started, but I think 0:01:50.240 --> 0:01:53.559 is only going to be um increased by what's happening 0:01:53.600 --> 0:01:55.760 in the Ukraine. Because if you are the Chinese, you 0:01:55.920 --> 0:01:59.600 look and you quite rationally see what has happened to 0:01:59.680 --> 0:02:03.600 the um Russians in terms of things like foreign reserves 0:02:03.600 --> 0:02:06.880 and all those things, and your desire to be self sustainable, 0:02:07.560 --> 0:02:10.720 especially if you're considering anything to do with Taiwan, increases, 0:02:11.000 --> 0:02:12.679 and by the same token, you also see what the 0:02:12.800 --> 0:02:15.959 You know, the Americans are also racked up there their 0:02:16.040 --> 0:02:18.919 desired to decouples. At the moment. The decuping, I think 0:02:19.000 --> 0:02:23.080 is is ongoing in that direction. I do think one 0:02:23.120 --> 0:02:26.440 of the problems on the west is it isn't we're 0:02:26.480 --> 0:02:29.959 not decoupling into here is China and here is the West. 0:02:30.800 --> 0:02:34.000 Um it's at the moment there aren't enough ties between 0:02:34.480 --> 0:02:36.880 the The EU would seem to be one sort of block, 0:02:37.639 --> 0:02:39.399 and you've got some version of the U S plus 0:02:39.520 --> 0:02:42.320 NAFTA on the other. So it's the western side of 0:02:42.360 --> 0:02:45.680 this equation is not well put together. And that's part 0:02:45.760 --> 0:02:47.760 of the piece is to say, look, this thing is 0:02:47.800 --> 0:02:53.200 happening gear strategically. The world is now decuping or sitting 0:02:53.280 --> 0:02:56.320 up into these dogs, and business people are thinking about 0:02:56.360 --> 0:02:58.280 the world in that way. I'm intrigued by how many 0:02:58.280 --> 0:03:00.679 people I've got emails from this morning thing that's exactly 0:03:00.720 --> 0:03:04.000 what we're thinking about, and that our point about this 0:03:04.080 --> 0:03:06.320 piece is ready to say to Joe Biden, look, this 0:03:06.400 --> 0:03:09.720 is your opportunity. You can go to the American people 0:03:09.760 --> 0:03:13.760 now and say we have got to cement our relationships 0:03:13.800 --> 0:03:16.960 with the other democracies around the world, and the best 0:03:17.040 --> 0:03:19.600 and the best way to do that is through trade deals. 0:03:19.720 --> 0:03:23.440 I watched Gina Romando going around Asia last year, and 0:03:24.040 --> 0:03:25.920 you know it was it was so sad she was 0:03:26.000 --> 0:03:29.239 out there trying to say, we're all democracies, let stick together, 0:03:29.919 --> 0:03:33.079 let's have a framework, um, And the Asians just looked 0:03:33.120 --> 0:03:36.480 at her and stuff. Really what we want is a 0:03:36.480 --> 0:03:39.480 trade deal, and that's what America was. America wasn't the 0:03:39.560 --> 0:03:44.600 leader those So that's slightly long winded. So John, you 0:03:44.640 --> 0:03:47.320 know when President Trump and his administration did the America 0:03:47.400 --> 0:03:51.120 First strategy that marked seemingly the ender a pause in 0:03:51.200 --> 0:03:55.280 what had been seventy years of globalization post war. Where 0:03:56.080 --> 0:03:58.600 was that just an aberration those four years? Because as 0:03:58.640 --> 0:04:01.440 I look at Brussels today, just for example, I see 0:04:01.440 --> 0:04:06.200 a fairly united West. I see a fairly united NATO. 0:04:06.240 --> 0:04:09.720 I'm actually optimistic. Or has Trump? Was the election of 0:04:09.760 --> 0:04:12.480 Trump crossing the rubicon? I mean, is that something that 0:04:12.600 --> 0:04:15.880 Europe can never really forgive us for No? I think, well, 0:04:15.880 --> 0:04:18.159 you know, but we we also it wasn't two thousand 0:04:18.200 --> 0:04:21.000 and sixteen. I mean I think two sixteen was one 0:04:21.000 --> 0:04:24.280 of several dates, Um, that you can say that globalization 0:04:24.279 --> 0:04:26.520 went into reverse two thousand and sixteen. Remember you you 0:04:26.560 --> 0:04:29.840 didn't just have Trump, you also had the British leaving, 0:04:30.080 --> 0:04:32.320 who in general have been the most free trading nation 0:04:32.960 --> 0:04:35.960 in history. Type things you had them leaving the biggest 0:04:36.000 --> 0:04:38.120 free trade pack in the world, which the U. So 0:04:38.240 --> 0:04:40.440 you also had that. I think you could argue in 0:04:40.480 --> 0:04:45.039 two thousands, arguing against pall in In back when Lehman 0:04:45.120 --> 0:04:48.120 Brothers happened, you had a slight meltdown at global capitalism. 0:04:48.160 --> 0:04:51.960 Before that, you had been laden in two thousand and 0:04:51.960 --> 0:04:55.080 one using the you know, the very symbols of globalization 0:04:56.480 --> 0:04:59.840 jet plane to attack the World Trade Center, and more 0:05:00.000 --> 0:05:02.240 so we've had COVID. So the way I look at 0:05:02.279 --> 0:05:04.640 it is, I think there is a real difference, and 0:05:04.720 --> 0:05:06.800 we have this in the piece. You know, we use 0:05:06.880 --> 0:05:11.120 the famous example that Domaino Canes have. The Londoner back 0:05:11.160 --> 0:05:15.280 in Super nine. He's sitting there very very similar to 0:05:15.320 --> 0:05:18.360 Matt Miller on an average day of life in Germany 0:05:18.839 --> 0:05:21.080 or or need a Swiss gentleman, we know, sitting there, 0:05:21.520 --> 0:05:24.080 lying in bed, ordering the goods of the whole world 0:05:24.160 --> 0:05:28.640 from his expansive mansions somewhere Frankfurt, and he is ordering 0:05:28.760 --> 0:05:32.599 every single bit. He's expecting things to show up. He 0:05:32.680 --> 0:05:35.839 can travel anywhere he likes, this Londoner back in nineteen. 0:05:36.279 --> 0:05:40.120 He doesn't need a passport, doesn't need capital controls. You 0:05:40.160 --> 0:05:44.160 can use gold, sovereigns everywhere. This is a global world 0:05:44.200 --> 0:05:46.560 for him and and things thanks for things like the telephone. 0:05:47.040 --> 0:05:49.359 New technology is making it ever ever smaller, and he 0:05:49.440 --> 0:05:52.360 fails to notice at the bottom of his paper these 0:05:52.400 --> 0:05:55.760 small headlines about Sara jov I think the difference between 0:05:55.839 --> 0:05:58.400 that person new Canes was really trying to say, Look, 0:05:58.480 --> 0:06:01.120 that was the world we lost and us is that 0:06:01.480 --> 0:06:04.080 I think. I think we've been warned fairly continually in 0:06:04.240 --> 0:06:08.280 the past twenty years that globalization is in trouble, free 0:06:08.279 --> 0:06:11.800 trade is in trouble. We have been laden. We had Trump, 0:06:11.880 --> 0:06:16.320 we had UM that breaks it, we had financial crash, 0:06:16.360 --> 0:06:18.880 we've had COVID in many ways. You know, Ukraine is 0:06:18.880 --> 0:06:21.080 one of those moments where people suddenly take all those 0:06:21.120 --> 0:06:24.400 things and think this is this is a big new thing. 0:06:25.760 --> 0:06:28.279 But by the way, I got a listener writing in 0:06:28.400 --> 0:06:31.960 saying continental Europe has the goal to judge the US. 0:06:32.120 --> 0:06:36.600 They have single handedly made the Russian situation worse um, 0:06:36.640 --> 0:06:39.120 which is a big statement. On the other hand, John, 0:06:39.320 --> 0:06:42.880 I was there when you interviewed angela miracle, so you've 0:06:42.920 --> 0:06:45.000 talked to her at least once. What do you think 0:06:45.920 --> 0:06:48.559 her role? You know, I think I think she she looks, 0:06:49.320 --> 0:06:53.800 she looks less good and she did. Um. It's quite interesting. 0:06:53.839 --> 0:06:57.560 That's an old soor of a political stor about all 0:06:57.600 --> 0:07:00.680 political careers and in failure, and Ang Michael seemed to 0:07:00.720 --> 0:07:03.039 be the great exception to that. The fact that this 0:07:03.160 --> 0:07:05.520 crisis has come so soon after she's left, I think 0:07:05.760 --> 0:07:08.640 that there are things that that she did that look 0:07:08.760 --> 0:07:12.440 much more questionable. The whole sort of policy, which I 0:07:12.480 --> 0:07:15.720 think you're the listener who was complaining was pointing out, 0:07:15.760 --> 0:07:18.520 was that Europe was sort of doing a bit of both, 0:07:18.600 --> 0:07:21.360 kind of flirting with Ukraine whilst not actually doing anything 0:07:21.400 --> 0:07:25.080 really solid to help it, and then building dream too, 0:07:25.840 --> 0:07:28.400 and then the other gigantic built lauch Um two. And 0:07:28.440 --> 0:07:31.440 then she also turned off the nuclear power and so 0:07:31.680 --> 0:07:35.320 Germany is now completely health hostage to that. So I 0:07:35.360 --> 0:07:38.040 think she would she I think a great woman, though 0:07:38.080 --> 0:07:41.040 she was, she looked slightly less great now than she 0:07:41.080 --> 0:07:43.760 did then. I wonder what you think John about the 0:07:45.120 --> 0:07:50.960 sanctions on the one hand, seemed to be pushing Beijing 0:07:51.080 --> 0:07:56.080 even closer to Moscow and not very not very helpful 0:07:56.120 --> 0:07:59.000 to the dollar um. As we see, the Saudis asked 0:07:59.000 --> 0:08:00.960 the Chinese that they can say on them oil and 0:08:01.080 --> 0:08:05.920 un But on the other hand, we're just destroying the 0:08:06.040 --> 0:08:09.320 sanctity of private property. Right if you're rich and you 0:08:09.440 --> 0:08:11.680 happen to be from Russia, we're going to take away 0:08:11.680 --> 0:08:15.880 all your stuff and there's no due processes that. Yeah, 0:08:15.960 --> 0:08:18.600 I do that. What two things on that one? I 0:08:18.640 --> 0:08:21.200 think the on the firstly, on the on the Chinese stuff, 0:08:21.280 --> 0:08:25.360 I think that China is China seemed to be sort 0:08:25.360 --> 0:08:28.880 of pretty okay with what Putin was doing. As the 0:08:28.960 --> 0:08:31.480 full kind of blood and horror of it is coming through, 0:08:31.560 --> 0:08:33.679 they seem to be reversing a bit. But I do 0:08:33.760 --> 0:08:36.760 think whatever happens in the short term, whatever she decides 0:08:36.840 --> 0:08:39.600 to do about Putin, I think that's still a little 0:08:39.640 --> 0:08:42.480 bit of an open question. I think there's no doubt 0:08:42.600 --> 0:08:44.800 that she and the kind of wolf pack around him 0:08:45.080 --> 0:08:47.200 are going to say, look, this is whether we like 0:08:47.280 --> 0:08:49.520 it or not, the economy is splitting two different blocks. 0:08:50.440 --> 0:08:52.960 If we want to protect live out, we want to 0:08:53.160 --> 0:08:55.640 we want to grab our bit and stay self sufficient. 0:08:55.720 --> 0:08:58.000 Whin in that bit, I think that's part one. I 0:08:58.080 --> 0:09:00.760 think in terms of the oligarchs and what we're doing 0:09:00.880 --> 0:09:02.680 very property, I am a little bit nervous about that. 0:09:02.720 --> 0:09:08.360 I'll be honest against that it is this is a Russia. 0:09:08.480 --> 0:09:14.760 Is that it's not the same as this possessing American billionaires. 0:09:14.880 --> 0:09:16.640 At different times all of us have been very annoyed 0:09:16.720 --> 0:09:22.280 with This is a much more hand in glove relationship 0:09:22.360 --> 0:09:26.000 with government. Most of these people are rich because they 0:09:26.000 --> 0:09:29.960 have been given natural resources by the government, and the 0:09:30.080 --> 0:09:34.120 level of interaction between these people and the Kremlin is 0:09:34.240 --> 0:09:36.800 much much higher. That's Part one and part two. Whatever 0:09:36.840 --> 0:09:41.720 the many things UM that we that we accuse American 0:09:41.760 --> 0:09:44.360 billionaires of, you don't accuse them of going in the 0:09:44.679 --> 0:09:50.800 factories and shooting people, which restrict me from pointing out 0:09:50.800 --> 0:09:52.880 which particular ones fit in that category. But there are 0:09:52.880 --> 0:09:56.160 you know, there's a number of these oligogus, not by 0:09:56.160 --> 0:09:59.839 any measure of pleasant people. John, What is the role 0:09:59.840 --> 0:10:02.920 of the UK going forward? You believe? I think the 0:10:03.000 --> 0:10:05.439 UK is in a UM. I think in terms of 0:10:05.440 --> 0:10:08.800 the Russia, they have they have tried to catch up. 0:10:09.840 --> 0:10:12.920 London Is style is definitely no longer as easy it 0:10:13.080 --> 0:10:16.280 used to be. Even Chelsea has past the football club 0:10:16.320 --> 0:10:20.880 has passed across UM. I think more generally for the UK, 0:10:21.120 --> 0:10:23.599 this I think begins to make a bit of a 0:10:24.120 --> 0:10:26.520 sort of mockery out of Brexit, and I'm not I'm 0:10:26.520 --> 0:10:28.840 one of those people who's trying to move on from Brexit. 0:10:29.520 --> 0:10:33.640 But if this does push forward the idea of trade 0:10:33.679 --> 0:10:37.360 blocks developing different zones, well, Britain is rather kind of 0:10:37.400 --> 0:10:40.680 stuck in the middle. Um. You know we we so 0:10:40.760 --> 0:10:42.960 far Britain's attempts to try and get a trade deal 0:10:43.080 --> 0:10:46.680 with America have almost completely availed. Um. And there's still 0:10:47.400 --> 0:10:51.440 the rather strange argument, strange policy of paying more attention 0:10:51.520 --> 0:10:56.120 to arguing with the French about fishery rights brackets revenue 0:10:56.200 --> 0:10:59.360 of I think it's million dollars a year, seven hundre 0:10:59.360 --> 0:11:02.320 million pounds. Yeah. Um, it's spending more time on that 0:11:02.440 --> 0:11:05.000 than the City of London brackets a hundred and sixty 0:11:05.040 --> 0:11:08.680 eight billion dollars a year. Um. It's coming home to 0:11:08.760 --> 0:11:12.440 roost that there is no the Bridige have not endeared 0:11:12.480 --> 0:11:15.920 themselves to the Europeans. Um. And it was noticeable. I 0:11:15.920 --> 0:11:19.520 was in Paris the week before last and even there 0:11:19.559 --> 0:11:22.320 talking to French officials, you know that I wondered whether 0:11:22.480 --> 0:11:25.439 the general coming together of the West of the Ukraine 0:11:25.440 --> 0:11:28.720 has extended to that particular relationship, and the answer was 0:11:28.720 --> 0:11:32.080 the Gray Firm. No, it does seem the music will 0:11:32.120 --> 0:11:36.280 stop and the UK doesn't necessarily have a chair right now. 0:11:36.800 --> 0:11:39.520 I wonder, you know, after reading your piece, I was 0:11:39.559 --> 0:11:44.760 thinking about a great um piece of reporting that be 0:11:44.920 --> 0:11:47.120 ended a couple of days ago. I can't remember who 0:11:47.120 --> 0:11:49.199 else wrote, but Amory Hordon was one of the writers 0:11:49.200 --> 0:11:52.680 of the of the piece on the Biden administration reaching 0:11:52.679 --> 0:11:56.240 out again to Mohammed bin Salman. And this is like 0:11:56.840 --> 0:12:01.800 such an important issue because the whole world reserve currency 0:12:01.960 --> 0:12:07.040 status is so anchored in oil, you know, barrels priced 0:12:07.080 --> 0:12:11.120 in dollars and um. They've been such an important foothold 0:12:11.160 --> 0:12:14.840 for the US in the Middle East. The saudis UH, 0:12:14.880 --> 0:12:18.480 but we're not happy with them right now because of UH, 0:12:18.520 --> 0:12:23.440 the you know, dismantling of Jamaica, Shogi and UM dismembering, 0:12:23.480 --> 0:12:27.520 I should say, and their actions in Yemen. The question 0:12:27.640 --> 0:12:30.000 is what do we do. Do they end up with 0:12:30.080 --> 0:12:33.880 the Autocrat block, do they end up with us where 0:12:33.920 --> 0:12:37.080 I guess they still are, but that relationship is tenuous. 0:12:37.600 --> 0:12:40.840 What happens to the saudis my guess, as they end 0:12:40.920 --> 0:12:44.000 up with us. But I think you have put your 0:12:44.040 --> 0:12:47.600 finger on the problems at the moment um that they 0:12:47.720 --> 0:12:50.160 you know that there is very obviously it's the monarchy, 0:12:50.200 --> 0:12:53.680 their elements of autocracy there but one and secondly they 0:12:53.760 --> 0:12:57.640 have on the issue of natural resources, they often get 0:12:57.640 --> 0:13:00.280 pushed back towards the with the Russians, or it has 0:13:00.280 --> 0:13:02.920 to be said, a lot of recent Opeic history has 0:13:02.960 --> 0:13:05.280 been arguments between the Saudis and the Russians, so it's 0:13:05.280 --> 0:13:08.040 not an easy relationship. I mean, I do, yes, I 0:13:08.080 --> 0:13:10.520 do think they are one of those those powers out 0:13:10.559 --> 0:13:15.160 there and it does cause I think, um problems for Saudis. 0:13:15.200 --> 0:13:18.400 It gives them a short term bonus. The price spoilers 0:13:18.480 --> 0:13:21.079 rocketed up, and that's given them a chance. But it 0:13:21.200 --> 0:13:26.880 has also I think greatly accentuated the desire of other 0:13:26.920 --> 0:13:31.640 places around the world to wean themselves off oil and 0:13:31.679 --> 0:13:34.920 gas or oil particularly um and that you can see 0:13:34.960 --> 0:13:39.040 that already America has a much freer hand than than 0:13:39.240 --> 0:13:41.480 other parts of the world because America doesn't have to 0:13:41.520 --> 0:13:45.200 rely on oil from other places. So that is all, 0:13:45.480 --> 0:13:47.800 you know, that's that's been a useful and very kind 0:13:47.800 --> 0:13:50.160 of UM and I think other people will follow that. 0:13:50.440 --> 0:13:53.720 If you compare whether United States is because of what's 0:13:53.720 --> 0:13:55.600 happened in Ukraine and where Germany is for all the 0:13:55.640 --> 0:13:58.880 reasons you just pointed out, America has much greater freedom 0:13:58.920 --> 0:14:01.760 to act. I think America relies on one percent Russian oil. 0:14:02.320 --> 0:14:05.440 Germany relies on an enormous amount of Russian gas. As 0:14:05.520 --> 0:14:09.880 just point out, it's not just the Germans, places like 0:14:09.960 --> 0:14:14.480 Poland which historically and think rather much more aggressive attitude 0:14:15.000 --> 0:14:17.880 recent history, much more aggressive attitude to the Russians and 0:14:18.200 --> 0:14:21.360 the Germans have done. They are even more dependent on 0:14:21.400 --> 0:14:25.200 the on Russian gas. All right, John, that is great stuff. 0:14:25.240 --> 0:14:27.840 Thank you very much for taking the time. John Michael Waite, 0:14:27.920 --> 0:14:30.000 editor in chief of Bloomberg News, joining us with this 0:14:30.080 --> 0:14:32.840 Big Take story today along with the Adrian Woodridge. You 0:14:32.840 --> 0:14:35.400 can find that at Bloomberg dot com slash Big Take 0:14:35.480 --> 0:14:42.960 in the NI space Big Take go. All right, let's 0:14:43.040 --> 0:14:46.200 check in with Loreen Gilbert loren Is, founder and CEO 0:14:46.200 --> 0:14:50.360 of wealth Wise Financial Services, joining us from Sunny California. 0:14:50.440 --> 0:14:53.880 I believe Loreen, what are you telling your clients here 0:14:54.440 --> 0:15:00.760 who may be concerned about rising interest rates, inflation, geo politics? 0:15:01.400 --> 0:15:04.920 What do you tell them these days? Good morning? Well, 0:15:04.960 --> 0:15:09.880 I say, I certainly understand everybody's feeling pain at the pump. 0:15:10.280 --> 0:15:14.520 Everybody feels the pain at the grocery store, and so 0:15:14.800 --> 0:15:17.240 the consumer is starting to feel it, and that means 0:15:17.240 --> 0:15:20.240 investors are feeling it as well. So it's a it's 0:15:20.240 --> 0:15:25.240 a time when there's so much uncertainty that being a 0:15:25.280 --> 0:15:29.840 little bit risk off and much more defensive makes sense. 0:15:29.920 --> 0:15:32.920 That doesn't mean putting everything in cash, but it certainly 0:15:32.960 --> 0:15:35.760 means pulling in maybe a little bit of cash and 0:15:36.400 --> 0:15:40.000 leaning towards the more conservative areas of the market. So 0:15:40.080 --> 0:15:45.160 do investors get uh, do they lean towards preserving capital 0:15:45.200 --> 0:15:49.240 here rather than looking for returns? I think what we're 0:15:49.240 --> 0:15:51.760 talking to our clients about is looking for areas of 0:15:51.840 --> 0:15:57.240 the market that are value oriented that you know, no 0:15:57.280 --> 0:16:01.080 matter what happens. You know, certainly with inflation still being 0:16:01.080 --> 0:16:04.400 an issue and rising rates being an issue, um, you 0:16:04.520 --> 0:16:09.400 don't want an overweight and fixed income where you know 0:16:09.480 --> 0:16:11.840 you're not going to keep up with inflation. And of 0:16:11.880 --> 0:16:14.440 course we see the ag is quite negative year today. 0:16:14.880 --> 0:16:19.200 So we still like stocks like equities in the portfolios, 0:16:19.240 --> 0:16:23.560 but like I said, leaning more conservatively towards the value 0:16:23.400 --> 0:16:26.760 tilt is what I would say, dividend paying stocks that 0:16:26.920 --> 0:16:31.440 can keep investors comfortable that they are receiving those dividends. Loreen. 0:16:31.480 --> 0:16:33.320 A lot of folks these days are saying it is 0:16:33.360 --> 0:16:38.680 a stock pickers market. What does that mean to you? Yeah, 0:16:38.760 --> 0:16:43.200 so you know, the markets go in swings from passive 0:16:43.280 --> 0:16:46.840 investing to active investing, and we've been saying for a 0:16:46.840 --> 0:16:50.000 while that it's going to be a stock pickers market, 0:16:50.040 --> 0:16:54.480 which we've seen that certainly year today where active managers 0:16:54.600 --> 0:16:58.920 have outperformed the SMP five D to the highest that 0:16:59.000 --> 0:17:01.040 it's been since to the INN eight as far as 0:17:01.120 --> 0:17:04.760 out performance, and we expect that to continue. Um. So 0:17:05.320 --> 0:17:08.560 you know, that's where we can help investors looking for 0:17:08.600 --> 0:17:12.800 those opportunities and seeing the areas that we do see 0:17:12.800 --> 0:17:16.200 an opportunity. He's, like I said, in the value part 0:17:16.600 --> 0:17:19.119 um more so than the growth part of the market. 0:17:19.960 --> 0:17:22.680 A lot of people have been saying, I've been using 0:17:22.680 --> 0:17:26.439 the acronym tina to describe stocks. There's no alternative. And 0:17:26.480 --> 0:17:30.960 I keep looking back at this chart on the Bloomberg 0:17:31.000 --> 0:17:33.240 at six Paul, if you want to check it out, 0:17:33.480 --> 0:17:36.720 g hashtag b TV six five zero six, and it 0:17:36.760 --> 0:17:41.240 shows fixed income performance globally over this quarter. It's been 0:17:41.359 --> 0:17:46.159 horrendous and the Bloomberg Treasuries index has been the worst 0:17:46.400 --> 0:17:49.840 perform had the worst performing quarter of my lifetime. And 0:17:49.880 --> 0:17:53.800 I'm not young, and it's made it difficult for investors 0:17:53.800 --> 0:17:56.879 who are in you know, let's say a moderate portfolio 0:17:57.760 --> 0:18:01.400 equities fixing exactly what I wanted to ask you about, 0:18:01.520 --> 0:18:04.480 especially people who are retiring are getting close, you know, 0:18:04.600 --> 0:18:06.679 I mean, how hard has it been and what do 0:18:06.720 --> 0:18:10.880 they do now? It's been very difficult, and so we're 0:18:11.160 --> 0:18:15.280 investors were talking a lot about, uh, looking at areas 0:18:15.280 --> 0:18:18.240 in the market, like I said, value stocks that to 0:18:18.280 --> 0:18:22.520 pay dividends, and then municiple bonds, which has not also 0:18:22.960 --> 0:18:26.560 not been stellar year to day. However, we know that 0:18:26.560 --> 0:18:29.959 those cubone payments are coming and um, you know, when 0:18:30.040 --> 0:18:34.119 it comes to being conservative, first their treasuries and there's muties. 0:18:34.200 --> 0:18:39.520 So municipal bonds and value stocks right now are still 0:18:39.560 --> 0:18:43.960 areas that we like quite a bit. Your clients call 0:18:44.040 --> 0:18:46.439 you up, Lorine and see and say I need an 0:18:46.480 --> 0:18:49.639 exposure to crypto? Does that happen? Is that happening to you? 0:18:51.800 --> 0:18:55.160 We certainly get asked the question quite a bit. And 0:18:55.760 --> 0:18:59.160 I'll tell you right now, with the with the Federal Reserve, 0:18:59.800 --> 0:19:02.440 we with treasury, with our with the United States of 0:19:02.400 --> 0:19:06.840 America looking at digital currency. I think that the weight 0:19:06.920 --> 0:19:10.639 and see is absolutely important because it could be a 0:19:10.760 --> 0:19:16.960 zero sum game where digital currencies are established by central 0:19:16.960 --> 0:19:20.119 banks all over the world China, United States and others. 0:19:20.560 --> 0:19:25.160 And I think that that is going to become a standard. Uh. 0:19:25.200 --> 0:19:29.000 And so I would say to investors to to look 0:19:29.040 --> 0:19:32.240 to the central banks because I don't see central banks 0:19:32.320 --> 0:19:37.960 allowing truly other currencies that are in the private sector. 0:19:40.000 --> 0:19:42.480 All right, thanks so much for joining us. Lauren, great 0:19:42.520 --> 0:19:45.560 to get some time with you, and I really appreciate 0:19:45.600 --> 0:19:48.960 your insight. Laurien Gilbert there, founder and CEO of wealth 0:19:49.080 --> 0:19:55.879 Wise Financial Services, talking to us out of Laguna Beach, California. 0:19:56.520 --> 0:20:01.360 R E s G Environmental social governance. It is a 0:20:01.400 --> 0:20:06.240 big factor, a growing factor in investors minds these days. 0:20:06.280 --> 0:20:09.000 One of the challenges is incorporating E s G analysis 0:20:09.000 --> 0:20:12.919 into your securities analysis. Is the data ain't that great? 0:20:13.480 --> 0:20:16.320 And we bring in West Bricker, vice chair US Trust 0:20:16.359 --> 0:20:19.120 Solutions co leader at p WC. West. Thanks so much 0:20:19.160 --> 0:20:21.359 for joining us here again. You know when people do 0:20:21.400 --> 0:20:23.320 their financial analysis and they go to the f A 0:20:23.480 --> 0:20:26.320 page on the Bloomberg terminal, there's lots of income statement, 0:20:26.440 --> 0:20:29.400 balance sheets, cash flow statements and stuff like that. And 0:20:29.440 --> 0:20:32.480 we do have an e s G tab there where 0:20:32.480 --> 0:20:34.840 Bloomberg brings together a lot of E s G data 0:20:34.920 --> 0:20:38.200 for uh our users. But a lot of folks are saying, 0:20:38.280 --> 0:20:41.280 just generally speaking, there's not enough good data to do 0:20:41.520 --> 0:20:46.280 E s G analysis. What's going on there? Well, thank 0:20:46.320 --> 0:20:48.840 you very much for the opportunity to be with you, 0:20:49.320 --> 0:20:53.639 Matt and faulse Um. Here's here's what we see. The 0:20:53.760 --> 0:20:57.240 SEC has focused on um what's happening in the marketplace 0:20:57.280 --> 0:21:00.840 and eight and investors are asking for more information, more 0:21:00.920 --> 0:21:06.520 segmentation of important information about the risks I call them 0:21:06.560 --> 0:21:11.040 pre financial risks. Whether it's carbon, whether it's how my 0:21:11.119 --> 0:21:15.080 workforce is coming together and innovating and collaborating. Maybe that's 0:21:15.119 --> 0:21:19.919 how I'm providing access to customers or potential customers into 0:21:20.680 --> 0:21:25.399 my platform. All of that comes together ahead of the 0:21:25.480 --> 0:21:29.560 financial effects. And so as you look at the financial content, 0:21:29.680 --> 0:21:34.920 the SEC just recently this week looked at the element 0:21:35.040 --> 0:21:40.320 of carbon and the climate and proposed new rules which 0:21:40.400 --> 0:21:45.800 require more information in the financial statements in the footnotes 0:21:46.040 --> 0:21:48.919 about the effect of climate on the financials so that 0:21:49.040 --> 0:21:53.600 investors can find more relevant information in order to conduct 0:21:53.640 --> 0:21:59.240 their analysis. Kind of isn't this kind of a moving target? Um? 0:21:59.280 --> 0:22:02.479 In a sense where because you know, last year in 0:22:02.560 --> 0:22:05.680 front of Congress, all the Wall Street UM CEOs were 0:22:05.800 --> 0:22:11.000 land bastard for lending money to oil producers, as if 0:22:11.080 --> 0:22:15.719 you know, they were just unbelievable sinners, just this close 0:22:15.760 --> 0:22:19.040 to breaking the law by supporting oil producers. And now 0:22:19.680 --> 0:22:23.960 um as the price of crude goes to one forty, 0:22:24.000 --> 0:22:27.760 everybody's like, why aren't they producing more? Uh? Even the 0:22:27.760 --> 0:22:30.760 Biden administration is like, damn it, we gave them nine 0:22:30.840 --> 0:22:33.879 thousand leases. They need to use them. So, you know, 0:22:33.960 --> 0:22:37.159 all of a sudden, it's like their national duty to 0:22:37.240 --> 0:22:40.480 be pulling more oil out of the ground. How does 0:22:40.520 --> 0:22:43.640 that jibe with an E s G world that is 0:22:43.880 --> 0:22:49.760 at all you know static? Sure, it's a great question. 0:22:50.000 --> 0:22:55.520 It's clear we need energy. Any any developed economy needs energy, 0:22:55.600 --> 0:22:59.600 needs a diversified set of energy sources. What this proposal 0:22:59.720 --> 0:23:04.359 is out is how do you really assess the impact 0:23:04.800 --> 0:23:10.240 of something like climate which is also changing? Um, what's 0:23:10.240 --> 0:23:14.439 the impact on the financials and and so the way 0:23:14.480 --> 0:23:19.040 they the information is proposed to be presented here is 0:23:19.920 --> 0:23:23.959 it takes something like a climate risk and then model 0:23:24.040 --> 0:23:27.040 it through the business that you're in, the prospects that 0:23:27.119 --> 0:23:32.960 you have, the performance over time, and the milestones. What 0:23:33.040 --> 0:23:37.080 would be the financial impact on a growth basis before 0:23:37.119 --> 0:23:41.840 you start offsetting or or figuring in the management actions 0:23:41.880 --> 0:23:45.240 that that might be relevant. Maybe maybe you'll buy carbon oufsets, 0:23:45.320 --> 0:23:49.280 Maybe you'll change a business process, maybe you'll alter a 0:23:49.359 --> 0:23:55.240 product mix. All of that analysis today it is provided 0:23:55.440 --> 0:23:58.080 in bits and pieces, some of it sitting on corporate 0:23:58.119 --> 0:24:02.119 websites in a sustainability report, maybe some of it in 0:24:02.800 --> 0:24:06.440 an investor survey on a biolateral basis between a company 0:24:06.440 --> 0:24:09.760 and their capital providers, with the SEC is saying, well, 0:24:09.880 --> 0:24:14.560 let's set a mandatory bar for all companies that enables 0:24:14.600 --> 0:24:20.720