WEBVTT - Consumers Will Be Able To Get Paid For Their Own Data: SRAX CEO 0:00:05.800 --> 0:00:08.720 Welcome to the Bloomberg p m L Podcast. I'm pim Fox. 0:00:08.760 --> 0:00:11.520 Along with my co host Lisa Bramowitz. Each day we 0:00:11.600 --> 0:00:15.120 bring you the most important, noteworthy, and useful interviews for 0:00:15.200 --> 0:00:17.800 you and your money, whether you're at the grocery store 0:00:17.920 --> 0:00:20.720 or the trading floor. Find the Bloomberg p m L 0:00:20.840 --> 0:00:28.200 Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. Sharks 0:00:28.760 --> 0:00:31.520 What is Sharks? Well? Here to tell us what Sharks 0:00:31.640 --> 0:00:34.600 is and why it matters is Chris mcgleno. He is 0:00:34.640 --> 0:00:37.560 the chief executive officer and the founder. They are based 0:00:37.600 --> 0:00:40.120 in Beverly Hills, California, but he is joining us here 0:00:40.120 --> 0:00:43.760 in our eleven three oh studios. Tell us, Chris, thanks 0:00:43.760 --> 0:00:47.280 for being here. First, thanks for having what exactly is Sharks? 0:00:47.320 --> 0:00:50.879 I understanding that you know the underlying thing right, digital 0:00:50.920 --> 0:00:54.920 marketing and consumer data distribution management platform, but I have 0:00:55.080 --> 0:00:57.600 no idea what that means. So what we do is 0:00:57.640 --> 0:01:03.040 we aggregate data on specific audiences. So we we work 0:01:03.120 --> 0:01:07.920 in certain verticals and then we aggregate data around those verticals. 0:01:07.920 --> 0:01:11.279 So an example is we're in the consumer package good business. 0:01:11.680 --> 0:01:14.800 We aggregate data on people that buy certain types of 0:01:14.840 --> 0:01:19.080 products in big box retailers we aggregate the information about 0:01:19.080 --> 0:01:22.600 those consumers and then we put into put them into silos, 0:01:22.640 --> 0:01:25.959 and then we sell access to that data back to marketers. 0:01:26.240 --> 0:01:30.640 We do that. We do similar thing with uh the 0:01:30.680 --> 0:01:34.600 medical business. We have every doctor in the United States 0:01:34.640 --> 0:01:38.160 map down to their cell phone, to their home computers, 0:01:38.160 --> 0:01:41.080 to their office computers, and then we sell access to 0:01:41.120 --> 0:01:43.679 that data to big pharma companies that want to reach 0:01:43.720 --> 0:01:47.640 those particular on colleges, cardiologists, neurologists, and so on. And 0:01:47.680 --> 0:01:50.080 we have that for around five different verticals that we do. 0:01:50.680 --> 0:01:53.680 How hard is it for you to access the data? Well, 0:01:53.880 --> 0:01:56.680 it takes a long time to build specific data sets 0:01:56.720 --> 0:01:59.840 because you need to build them over time. So we 0:02:00.840 --> 0:02:03.920 when we start a particular vertical, we have to slowly 0:02:04.000 --> 0:02:05.800 start to build them, and we buy a lot of 0:02:05.880 --> 0:02:09.040 data at first, and then data is we begin to 0:02:09.080 --> 0:02:11.839 aggregate the data ourselves, and then we own that data 0:02:11.880 --> 0:02:13.600 and resell it. The reason why I ask because I'm 0:02:13.639 --> 0:02:16.960 thinking about Facebook and the recent data privacy concern issues 0:02:17.240 --> 0:02:22.240 and increasing talk of regulation of the data disclosures. Is 0:02:22.240 --> 0:02:25.360 that going to make your life more difficult or do 0:02:25.400 --> 0:02:28.480 you think that that ship has sailed in the contract 0:02:28.520 --> 0:02:33.120 of people deciding to put their information online for everybody 0:02:33.360 --> 0:02:35.799 in return for getting free access to some of these services. 0:02:36.040 --> 0:02:38.600 I think consumers are more aware about the privacy issues 0:02:38.639 --> 0:02:41.000 now than they ever have been. I think in in 0:02:41.040 --> 0:02:44.400 the past, consumers haven't minded given up their data in 0:02:44.400 --> 0:02:47.880 exchange for free access. But I think now with the 0:02:47.960 --> 0:02:53.160 Equifax and with the UH the Facebook breaches, people are 0:02:53.280 --> 0:02:55.639 very aware of the value of their data. And that's 0:02:55.639 --> 0:02:58.880 why around a year ago, we started working on a 0:02:58.880 --> 0:03:01.800 platform that's going to out consumers to own their own data. 0:03:02.080 --> 0:03:04.440 So you, as a consumer will be able to own 0:03:04.480 --> 0:03:08.280 your own information and then people will access that information 0:03:08.320 --> 0:03:11.160 and you'll get paid for that data. UM it's called 0:03:11.200 --> 0:03:15.000 big Token, so UH big token is a platform. Big 0:03:15.040 --> 0:03:17.560 token dot com is a platform that allows people to 0:03:18.360 --> 0:03:22.480 put their information in validate data, and then as marketers 0:03:22.520 --> 0:03:26.480 want to access that information, they pay to access the data. 0:03:26.520 --> 0:03:29.480 But instead of the money going to the big oracles 0:03:29.560 --> 0:03:33.160 experience axioms of the world, it goes direct to the consumer. 0:03:34.000 --> 0:03:36.760 Let's say Lisa goes to an automobile showroom and she's 0:03:36.760 --> 0:03:39.760 interested in a particular car and decides to take a 0:03:39.840 --> 0:03:43.480 test drive, even goes to an auto show is that 0:03:43.640 --> 0:03:48.800 information can you connect that information with maybe what Lisa 0:03:48.840 --> 0:03:52.440 would do online looking at various automobile products very much. 0:03:52.480 --> 0:03:56.200 So we have a auto vertical, and within our auto vertical, 0:03:56.480 --> 0:04:01.160 we're providing software into the dealership level where if somebody 0:04:01.200 --> 0:04:03.000 comes in and takes a test drive, they put in 0:04:03.040 --> 0:04:06.160 the name, email address, phone number of that consumer. Once 0:04:06.200 --> 0:04:09.000 we have that data, we can pretty much find out 0:04:09.040 --> 0:04:11.600 everything else about the consumer. We can then do a 0:04:11.600 --> 0:04:15.520 cross map between the cell phone the email address, and 0:04:15.560 --> 0:04:18.720 that can help us find your browser. We can find 0:04:18.839 --> 0:04:22.559 multiple devices off of those browsers um and just map 0:04:22.600 --> 0:04:24.760 you in general, and within twenty four hours you can 0:04:24.800 --> 0:04:27.200 start seeing ads for the car that you just tested of. 0:04:27.800 --> 0:04:31.040 I'm really confused because the Facebook results that we just 0:04:31.080 --> 0:04:32.960 got seemed to show that people don't care at all 0:04:33.000 --> 0:04:37.000 about privacy because, uh they showed uh, you know, revenue 0:04:37.200 --> 0:04:40.000 growth that was the most is two thousand fifteen, and 0:04:40.160 --> 0:04:43.120 people seem to be uh flocking to the site regardless 0:04:43.120 --> 0:04:46.960 of any privacy concerns. I'm just wondering, why would anybody 0:04:46.560 --> 0:04:51.800 uh start to go through extra passwords and extra forms, etcetera. 0:04:51.839 --> 0:04:54.760 If they're frankly willing to give away their information and 0:04:54.839 --> 0:04:57.279 data for free, right now because consumers are not aware 0:04:57.320 --> 0:05:00.200 about the amount of money that is being generated off 0:05:00.240 --> 0:05:02.120 of them. How much money per person do you think 0:05:02.200 --> 0:05:06.839 is generated a good consumer living in New York City? Uh? 0:05:06.880 --> 0:05:09.080 And you know you remember, you're being tracked everywhere on 0:05:09.080 --> 0:05:12.040 your phone, So they're tracking you from where you live 0:05:12.320 --> 0:05:15.240 to where you work, So they're watching you from the 0:05:15.320 --> 0:05:20.520 Upper East Side to Bloomberg Studio, and they're tracking everything 0:05:20.560 --> 0:05:25.520 that you're doing, so anywhere anywhere from just on the 0:05:25.560 --> 0:05:31.240 digital advertising side, not the not uh consumer marketing research 0:05:31.720 --> 0:05:34.600 or direct mail or anything like that. Anywhere from two 0:05:34.680 --> 0:05:37.320 hundred to two thousand dollars a month. So it's a 0:05:37.320 --> 0:05:39.480 lot of money. Now, if somebody was going to give 0:05:39.520 --> 0:05:41.880 that money to you, would you go sign up to 0:05:41.960 --> 0:05:44.520 do it? That's why we put big Token dot com 0:05:44.600 --> 0:05:47.520 up and we've had thousands of people sign up to 0:05:47.680 --> 0:05:50.120 for their data. But then what about Amazon or what 0:05:50.160 --> 0:05:53.320 about some of these other companies that can gather this 0:05:53.400 --> 0:05:56.880 for free, They wouldn't then be as willing to pay 0:05:57.080 --> 0:06:00.600 the additional cost to me. Correct, Then you as a 0:06:00.640 --> 0:06:05.120 consumer will start to filter out what you're willing to 0:06:05.480 --> 0:06:08.640 look at. We're going to give you uh browser plug 0:06:08.680 --> 0:06:11.279 ins and tools that are going to help you get 0:06:11.400 --> 0:06:14.720 rid of ads that are not paying to access your information, 0:06:16.080 --> 0:06:19.000 and you might even get a check. You will you. 0:06:19.240 --> 0:06:22.320 I just I have to wonder how much I mean, Amazon, Google, 0:06:22.680 --> 0:06:25.160 these are the Facebook, the data sets that's where they 0:06:25.160 --> 0:06:27.360 live and die. So they've got to be fighting back now. 0:06:27.640 --> 0:06:30.080 I mean, you know, we're at the beginning of this. 0:06:30.160 --> 0:06:32.679 We've been working on it for a year, and uh, 0:06:32.800 --> 0:06:36.120 I think that those companies are about to see big 0:06:36.160 --> 0:06:39.839 competition in this area. They've they've they've owned this data 0:06:39.880 --> 0:06:43.080 set for a long time. Consumers have not fought back 0:06:43.400 --> 0:06:45.640 to own their own data, and now they're going to 0:06:45.720 --> 0:06:47.840 be ready to do that. They they just haven't had 0:06:47.880 --> 0:06:50.039 the tools to be able to do it. They couldn't 0:06:50.040 --> 0:06:54.760 go anywhere, sign up and then start getting getting money. Yeah. Well, um, 0:06:55.080 --> 0:06:58.640 I gotta say I I would love to earn twoth 0:06:58.640 --> 0:07:01.880 asand extras. Um. Chris mcglino, thank you so much for 0:07:01.920 --> 0:07:05.479 joining us. Chris mcgleino, chief executive officer and founder of Sharks, 0:07:05.560 --> 0:07:09.640 a digital marketing and consumer data distribution company which is 0:07:09.680 --> 0:07:11.920 based in Beverly Hills, California. But he decided to come 0:07:11.960 --> 0:07:14.280 to New York to our eleven three, oh Studios. Despite 0:07:14.480 --> 0:07:20.560 the rain and the clouds and the chilly air, the 0:07:20.640 --> 0:07:23.160 leaders of North and South Korea have agreed to pursue 0:07:23.240 --> 0:07:26.560 a peace agreement in historic talks. Here to tell us 0:07:26.600 --> 0:07:31.040 more about this is how Brands Henry Kissinger, Distinguished Professor 0:07:31.080 --> 0:07:33.920 for Global Affairs at the Johns Hopkins University School of 0:07:34.120 --> 0:07:38.600 Advanced International Studies, he joins us from Baltimore. How Brands, 0:07:38.600 --> 0:07:41.040 thank you very much for being with us. What if 0:07:41.040 --> 0:07:44.080 you could just describe what you believe is likely to 0:07:44.160 --> 0:07:48.400 happen next between the leaders of North and South Korea. Well, 0:07:48.440 --> 0:07:50.280 I think what you'll see is that there may be 0:07:50.400 --> 0:07:53.840 some effort to put flesh on the bones of the 0:07:53.960 --> 0:07:56.800 very skeletal agreement that was reached at the summit, which 0:07:56.840 --> 0:08:01.000 was basically aspirational in terms of working toward a formal 0:08:01.120 --> 0:08:03.040 end to the war in the Korean Peninsula and the 0:08:03.040 --> 0:08:06.520 eventual de nuclearization of the peninsula. But those goals are 0:08:06.640 --> 0:08:09.400 quite gauzy right now, and so any next steps would 0:08:09.440 --> 0:08:13.400 have to deal with flushing out the specifics of how 0:08:13.400 --> 0:08:16.320 those goals might be pursued. So how you know there 0:08:16.400 --> 0:08:18.200 we need to whip out the scorecard here, because there 0:08:18.200 --> 0:08:21.160 are a lot of people that are either giving credit 0:08:21.240 --> 0:08:25.000 to President Trump for navigating or pushing Kim John earned 0:08:25.000 --> 0:08:27.160 to this point. People are giving credit to the South 0:08:27.200 --> 0:08:30.320 Korean president. People are giving credit to China, who sort 0:08:30.400 --> 0:08:33.400 of pushed the leaders of North and South Korea to 0:08:33.559 --> 0:08:37.439 this point. In your view, well, really it was the 0:08:37.520 --> 0:08:39.920 leaders of North Korea who pushed the United States and 0:08:39.920 --> 0:08:42.320 South Korea to this point. It was the North Koreans 0:08:42.320 --> 0:08:44.720 who came up with the idea for a meeting between 0:08:45.440 --> 0:08:47.920 Trump and King Young Lum. And one of the really 0:08:47.960 --> 0:08:51.920 difficult analytical points in dealing with this situation is figuring 0:08:51.960 --> 0:08:55.600 out precisely what the North Korean calculus is. There's surely 0:08:55.640 --> 0:08:58.840 a desire to ease the economic pressure from the U 0:08:58.960 --> 0:09:01.880 S sanctions, but there may also be a calculation this 0:09:01.960 --> 0:09:04.920 is simply a smart, tactical way of reducing pressure while 0:09:04.920 --> 0:09:08.320 the North completes its nuclear arsenal. Now, in addition, there 0:09:08.360 --> 0:09:12.400 was a joint statement it's called the Pond John Declaration, 0:09:12.520 --> 0:09:16.640 calling for the restart of reunions of families separated by 0:09:16.720 --> 0:09:21.640 the Korean War. Will that accelerate further agreements? Do you 0:09:21.679 --> 0:09:24.080 think it's useful as an atmospheric and it may lead 0:09:24.120 --> 0:09:30.079 to additional atmospherics in the sense of suspending propaganda broadcasts 0:09:30.080 --> 0:09:33.400 across the border and things like that. It has relatively 0:09:33.440 --> 0:09:37.480 little connection to the more substantive issues at hand, which 0:09:37.520 --> 0:09:40.080 would be the nuclear program and the state of war 0:09:40.160 --> 0:09:42.840 that still exists between the North and the South, but 0:09:42.920 --> 0:09:45.520 it is perhaps hopeful as a sign of of a 0:09:45.600 --> 0:09:49.080 broader thawing between the two countries. You know, Professor, One 0:09:49.120 --> 0:09:51.360 thing that that struck me, aside from the menu, the 0:09:51.440 --> 0:09:55.440 highly symbolic menu of the meeting that took place between 0:09:55.440 --> 0:09:58.200 the North and South Korean leaders, it struck me that 0:09:58.400 --> 0:10:02.840 the whole procession was not broadcast on North Korean television. 0:10:02.880 --> 0:10:04.720 I know this is a small point, but to me, 0:10:04.800 --> 0:10:07.679 it indicated that there was not an opening up of 0:10:07.800 --> 0:10:11.320 North Korea. Was this significant to you and kind of 0:10:11.320 --> 0:10:13.640 what can we look at going forward to know whether 0:10:13.720 --> 0:10:17.800 this is in good faith or not. I think looking 0:10:17.840 --> 0:10:20.439 for an opening up of the North Korean political system 0:10:21.400 --> 0:10:25.160 is probably unrealistic at this point. Uh. The Kim family 0:10:25.200 --> 0:10:28.120 regime is interested first and foremost in its own survival, 0:10:28.160 --> 0:10:30.640 and I think it understands any meaningful opening up of 0:10:30.640 --> 0:10:34.080 the political system would would jeopardize that, and so everything 0:10:34.120 --> 0:10:37.080 that the regime is doing is a tactical move to 0:10:37.240 --> 0:10:40.880 secure its own power. So any opening up of the 0:10:40.920 --> 0:10:44.120 regime would presumably be something that would come much much 0:10:44.160 --> 0:10:46.760 farther down the road and would probably be almost against 0:10:46.760 --> 0:10:49.480 the will of the Kim family. If there is an 0:10:49.520 --> 0:10:52.960 agreement that is reached, what would this do to relations 0:10:52.960 --> 0:10:56.680 between the United States and China, Well, it all depends 0:10:56.679 --> 0:10:59.200 on what the nature of the agreement is. I think 0:11:00.080 --> 0:11:02.480 we're having a little bit of whiplash right now because 0:11:02.640 --> 0:11:05.160 for about a year, the fear of most countries in 0:11:05.200 --> 0:11:07.200 the region and around the world was that the Trump 0:11:07.200 --> 0:11:09.480 administration was going to get the United States into a 0:11:09.559 --> 0:11:12.480 nuclear war with North Korea. I think the fear now 0:11:12.640 --> 0:11:15.680 is that the United States might conclude a deal that 0:11:15.720 --> 0:11:18.880 would have actually be too advantageous to North Korea. And 0:11:18.920 --> 0:11:22.400 so the critical elements from the United States decide will 0:11:22.440 --> 0:11:24.640 to be in will be to ensure that any deal 0:11:24.679 --> 0:11:27.640 with the North doesn't prejudice the US alliance with South 0:11:27.720 --> 0:11:32.240 Korea or the broader US posture in the region. China 0:11:32.280 --> 0:11:34.320 obviously would like to see a different sort of deal, 0:11:34.400 --> 0:11:37.240 one that would lead to a retraction of American presence 0:11:37.440 --> 0:11:41.240 in Northeast Asia. So can you put this into context 0:11:41.440 --> 0:11:46.520 of why then this is so important? Well, this is 0:11:46.679 --> 0:11:49.480 the single this is the crisis spot that is most 0:11:49.559 --> 0:11:53.440 likely to lead to nuclear war. Right now, any conflict 0:11:53.480 --> 0:11:56.480 between the United States and North Korea would be of 0:11:56.600 --> 0:11:59.679 unbelievable lethality even if it did not cross the nuclear 0:11:59.720 --> 0:12:02.200 thresh fold. But from everything we know about North Korean 0:12:02.800 --> 0:12:06.240 military doctrine, it quite easily could escalate into the nuclear realm. 0:12:06.320 --> 0:12:09.320 And so if it is possible to negotiate some sort 0:12:09.320 --> 0:12:11.520 of agreement that would lower tensions, that would be a 0:12:11.520 --> 0:12:14.240 good thing in and of itself. If it's possible to 0:12:14.280 --> 0:12:16.680 do so in a way that leads to the rolling 0:12:16.720 --> 0:12:19.160 back of the North Korean nuclear arsenal, that would also 0:12:19.200 --> 0:12:22.199 be very useful in terms of reducing the nuclear threat 0:12:22.200 --> 0:12:24.680 both to the United States and its allies. That that's said, 0:12:24.720 --> 0:12:27.559 I'm still somewhat skeptical that this is ultimately what will 0:12:27.559 --> 0:12:30.840 come out of this process. Can the United States, Japan, 0:12:31.080 --> 0:12:35.120 and our allies live with a nuclear armed North Korea? 0:12:35.679 --> 0:12:37.680 We would prefer not to, but yes, I think we 0:12:37.760 --> 0:12:41.440 can live with it. If if the alternative were, for instance, 0:12:41.840 --> 0:12:44.920 launching a preventive war to prevent that. The United States 0:12:44.920 --> 0:12:47.480 has confronted the sort of problem for we worried very 0:12:47.559 --> 0:12:49.280 much about what it would mean to face a nuclear 0:12:49.320 --> 0:12:52.160 Soviet Union or a nuclear China during the Cold War, 0:12:52.200 --> 0:12:54.920 and in both cases we were ultimately able to live 0:12:54.920 --> 0:12:57.400 with it, albeit in a very dangerous intense way. And 0:12:57.440 --> 0:12:59.040 I think if we were put to it, we could 0:12:59.080 --> 0:13:01.920 probably do that again. So I want to I want 0:13:01.920 --> 0:13:03.719 to go back to the menu, since it was much 0:13:03.800 --> 0:13:07.280 parsed over and in mouth watering to read about what 0:13:07.360 --> 0:13:10.440 they ate. But what was interesting to me was that 0:13:10.520 --> 0:13:14.960 the menu anger Japan again, the menu that the for 0:13:15.000 --> 0:13:18.720 the feast that North Korean leader and South Korean leaders eight. 0:13:19.360 --> 0:13:23.440 What do you make of that? I don't make a 0:13:23.480 --> 0:13:25.280 lot of it. I think this is probably about the 0:13:25.320 --> 0:13:28.160 seventeenth on the list of things that's most important in 0:13:28.280 --> 0:13:33.199 terms of assessing the prospects of the negotiating process, and 0:13:33.200 --> 0:13:35.360 and so I I you know, this is a region 0:13:35.400 --> 0:13:38.520 where history looms very large, and so there are constantly 0:13:39.240 --> 0:13:43.240 seemingly small issues that are causing frictions between uh, not 0:13:43.360 --> 0:13:45.719 just the US, and it's adversarious, but sometimes between US 0:13:45.760 --> 0:13:48.520 allies and sometimes between Japan and North Korea, and so 0:13:48.559 --> 0:13:52.080 I I think that is is noteworthy and perhaps worth reporting, 0:13:52.120 --> 0:13:54.520 but but probably relatively low on the list of things 0:13:54.559 --> 0:13:57.800 that will determine the success or failure of this initiative. 0:13:58.040 --> 0:14:00.920 So South Korea's shrimp surprise for Donald Trump last year 0:14:00.920 --> 0:14:03.600 and the dessert this time around not the biggest thing 0:14:03.679 --> 0:14:05.160 on your list, How brands, thank you so much for 0:14:05.240 --> 0:14:08.160 joining us, How Brands. Henriette Kisinger, Distinguished professor at Johns 0:14:08.200 --> 0:14:13.040 Hopkins University and a Bloomberg View columnist. Definitely, some of 0:14:13.040 --> 0:14:17.400 the imagery coming out of the Korean Peninsula is really striking, 0:14:17.559 --> 0:14:21.080 of the leaders holding hands, taking one step into the north, 0:14:21.280 --> 0:14:24.240 one step into the south, marking the end to this 0:14:24.400 --> 0:14:27.960 what is it, seven decade long conflict that has been 0:14:28.360 --> 0:14:32.160 keeping a lot of families apart on the Korean peninsula. Yes, 0:14:32.200 --> 0:14:35.359 and that's set to change, at least according to this communication, 0:14:35.480 --> 0:14:38.760 although unclear whether those families will in fact get reunited 0:14:38.800 --> 0:14:46.480 anytime soon. Big tech is driving the train in US 0:14:46.600 --> 0:14:49.200 equity markets these days. And to talk a little bit 0:14:49.200 --> 0:14:51.200 about what we've seen out of earning so far as 0:14:51.240 --> 0:14:54.080 well as what to expect, is Michael Scanlon, portfolio manager 0:14:54.120 --> 0:14:58.440 at Manu Life Asset Management in Boston. He oversees, among 0:14:58.520 --> 0:15:01.840 other funds, the John Hand Balanced Fund, which has about 0:15:02.240 --> 0:15:04.520 nearly two billion dollars of assets. And Michael, I was 0:15:04.560 --> 0:15:07.960 looking and four of your top five biggest holdings in 0:15:07.960 --> 0:15:12.920 that fund Alphabet, Apple, Amazon, and Microsoft. As a result 0:15:13.080 --> 0:15:16.240 of the earnings that we have seen so far, have 0:15:16.360 --> 0:15:19.840 you decided to either add to your current holdings of 0:15:19.880 --> 0:15:22.600 any of those companies or pair some of the some 0:15:22.720 --> 0:15:25.840 of the assets. Well, good morning and thanks for having me. 0:15:25.920 --> 0:15:28.120 So I think when you look at this earnings period, 0:15:28.160 --> 0:15:29.960 you know, there's obviously we had a little bit of 0:15:30.000 --> 0:15:33.200 disappointment out of Google and then essentially very strong results 0:15:33.200 --> 0:15:35.320 out of the rest of the players there. I think 0:15:35.440 --> 0:15:37.760 when you look at the text based you know, whether 0:15:37.760 --> 0:15:40.880 it's these these newer platform companies like a Google or 0:15:40.920 --> 0:15:43.480 a Facebook, I mean, they continue to have these enormous 0:15:43.480 --> 0:15:46.240 secular tail winds. And I think it's also interesting if 0:15:46.240 --> 0:15:48.360 you look at it some of these more what you 0:15:48.360 --> 0:15:51.800 would associate with legacy I T names like Microsoft or Cisco. 0:15:52.200 --> 0:15:54.920 You know, those companies are obviously are also doing quite 0:15:55.000 --> 0:15:57.360 well right now. Has they're been able to manage this 0:15:57.440 --> 0:16:00.680 transition to more of a cloud based can shooting versus 0:16:00.760 --> 0:16:04.480 on premise type systems. Well, Michael, does this mean that 0:16:04.520 --> 0:16:07.040 you wouldn't invest really new money in a technology company 0:16:07.120 --> 0:16:10.680 unless it had a cloud offering? Well, we you know 0:16:10.760 --> 0:16:12.680 that has been a big part of our holdings is 0:16:12.720 --> 0:16:14.520 that you do want to have these companies that are 0:16:14.520 --> 0:16:17.200 aligned with that themes are else you're fighting an enormous headwinds. 0:16:17.240 --> 0:16:19.320 I mean, one name out there that's been struggling quite 0:16:19.320 --> 0:16:20.920 a bit, as Oracle, that's not a name that we 0:16:20.960 --> 0:16:23.600 own in our portfolio, and that's the name where when 0:16:23.680 --> 0:16:25.360 you look at their cloud business, I mean, they're just 0:16:25.360 --> 0:16:28.400 getting laughed by everybody else. So that that that would 0:16:28.440 --> 0:16:30.880 be a tough space to get invested in today. But Michael, 0:16:30.920 --> 0:16:32.880 the reason why I asked is because when we talked 0:16:32.960 --> 0:16:35.920 to a lot of investment managers and we asked them, 0:16:36.000 --> 0:16:39.240 you know when most last time that you rearranged your portfolio, 0:16:39.240 --> 0:16:41.000 they say, actually, we've held it the same for about 0:16:41.000 --> 0:16:43.040 a year. I'm wondering, is it the same with you 0:16:43.200 --> 0:16:45.240 or you know, do you look at these earnings and 0:16:45.240 --> 0:16:48.440 then decide, you know what, uh, Amazon seems like they're 0:16:48.560 --> 0:16:52.120 super solid, let's add more there, and you know, what Apple, 0:16:52.160 --> 0:16:55.000 we're a little bit concerned about the end of the superphone, 0:16:55.240 --> 0:16:57.800 of the supercycle of the smartphones. We're going to pair 0:16:57.880 --> 0:17:00.720 back there. Are you doing any of those calculatations right now? 0:17:01.360 --> 0:17:03.080 So that's a fair question. I mean, that's part of 0:17:03.080 --> 0:17:05.360 managing a portfolio as you get these names that will 0:17:05.400 --> 0:17:08.440 bounce hard after earnings, or they might sell off hard 0:17:08.480 --> 0:17:12.119 after earnings. And maybe that doesn't justify exiting or entering 0:17:12.680 --> 0:17:15.480 new positions, but what you do is trade your names 0:17:15.560 --> 0:17:17.720 up and down in terms of the weight of the portfolio. 0:17:18.200 --> 0:17:20.199 You know, you look at something like Apple over the 0:17:20.280 --> 0:17:22.919 last couple of years, you know that stock has been 0:17:23.000 --> 0:17:25.960 meaningfully higher than it has been today. Uh, And if 0:17:25.960 --> 0:17:27.760 you look at the weight of our portfolio, it has 0:17:27.800 --> 0:17:29.760 moved around in terms of the weight of the portfolio 0:17:29.800 --> 0:17:34.480 over the last twelve months. Michael, in managing the John 0:17:34.520 --> 0:17:39.520 Hancock Balanced Portfolio as well as the Balanced Fund, what 0:17:39.640 --> 0:17:42.879 would you like to see happen in terms of rebalancing 0:17:42.920 --> 0:17:46.119 Because some of the names in the fund have performed 0:17:46.200 --> 0:17:49.959 so well, You've got to maintain a balance so that 0:17:50.040 --> 0:17:52.720 you don't end up with these outsized positions that could 0:17:52.760 --> 0:17:57.440 come back and bite you. Yeah, So we initiated an 0:17:57.480 --> 0:18:00.880 overweight position and energy UH out of the second half 0:18:00.920 --> 0:18:02.800 of last year, and that proved to be a little 0:18:02.800 --> 0:18:06.439 bit early. Yet in the last month or so, it 0:18:06.480 --> 0:18:09.320 seems like that that positioning is starting to come around 0:18:09.320 --> 0:18:11.639 for us. I've had some really outsized winners there in 0:18:11.720 --> 0:18:15.360 terms of names like Conico Phillips or names like sun 0:18:15.440 --> 0:18:17.760 Core and Shell. So those names have been doing quite 0:18:17.760 --> 0:18:19.560 well for US, and I still think that, you know, 0:18:19.600 --> 0:18:21.480 even though they've had a big, meaningful bounce in the 0:18:21.560 --> 0:18:23.840 last couple of months here, I do still think there's 0:18:23.880 --> 0:18:25.760 a long runway there. So when you look at the 0:18:25.840 --> 0:18:30.639 SMP five roughly SMP in the tech sector UH at 0:18:30.680 --> 0:18:33.159 kind of a mid single digit six or seven percent, 0:18:33.480 --> 0:18:35.119 I do think that you're going to see energy to 0:18:35.160 --> 0:18:36.800 continue to work here through the end of the year. 0:18:37.160 --> 0:18:38.760 You know, Michael, I'd love to just zoom out a 0:18:38.760 --> 0:18:41.439 little bit and get your feeling on what the narrative 0:18:41.480 --> 0:18:45.040 should be for this earning season. By some measures, it's 0:18:45.080 --> 0:18:49.440 the biggest volume of earnings beats ever. By others, there 0:18:49.480 --> 0:18:52.000 are huge warning signs that this is perhaps as good 0:18:52.000 --> 0:18:55.000 as it gets. Where do you fall on the different 0:18:55.080 --> 0:18:58.600 narratives that are competing for attention right now. Yeah, it's funny. 0:18:58.640 --> 0:19:02.399 I mean if expectations were very high going into this 0:19:02.480 --> 0:19:04.760 earnings period, but yet if you look at the results, 0:19:04.760 --> 0:19:06.520 I mean, they've blown away the results. I think the 0:19:06.560 --> 0:19:08.840 earnings are. You know, it's been like an eight percent 0:19:09.040 --> 0:19:12.000 surprise on the consensus number this quarter thus far. I 0:19:12.000 --> 0:19:14.520 believe it's the number. And you know, you look at 0:19:14.560 --> 0:19:16.000 some of the things that are going on that you 0:19:16.040 --> 0:19:18.120 could frame as a negative right now, with the ten 0:19:18.200 --> 0:19:22.120 year yield crossing or hovering around three, an oil up meaningfully, 0:19:22.160 --> 0:19:25.280 which is attacks on the U S consumer essentially. Uh. 0:19:25.320 --> 0:19:27.199 You know, I think somebody said it best the other 0:19:27.280 --> 0:19:29.000 day when they said we're all looking for a silver 0:19:29.080 --> 0:19:31.840 bullet and exactly why the market has been weaker than 0:19:31.880 --> 0:19:34.000 would expect. But you know, at the end of the day, 0:19:34.000 --> 0:19:36.160 it's earnings that drive markets, and you might have these 0:19:36.200 --> 0:19:38.760 short periods of disconnect where the market doesn't keep up 0:19:38.800 --> 0:19:41.520 with earnings growth. But I think the SMP five hundred 0:19:41.520 --> 0:19:43.359 here at you know, sixteen and a half, a little 0:19:43.359 --> 0:19:46.480 bit of seventeen times earnings, I think it's very attractive 0:19:46.520 --> 0:19:48.119 and by the end of the year, I do expect 0:19:48.160 --> 0:19:50.840 the market's going to finish higher from here. Michael, you 0:19:50.840 --> 0:19:55.720 mentioned energy, what about other commodities noted investments maybe in 0:19:55.800 --> 0:20:01.159 countries such as Australia. Yeah, so outside of energy, you know, 0:20:01.240 --> 0:20:05.000 we do have a small position in Franco, so we 0:20:05.040 --> 0:20:07.640 have some exposure to gold. Uh. You know, I think 0:20:07.720 --> 0:20:09.880 when you look at the commodity space really right now, 0:20:09.920 --> 0:20:12.239 our focus has been on oil and names that are 0:20:12.240 --> 0:20:15.760 more associated with it because the disconnects between what the 0:20:15.760 --> 0:20:19.080 commodity has done since last summer versus what the stock 0:20:19.119 --> 0:20:21.040 prices have done, and we just feel like that that's 0:20:21.160 --> 0:20:23.880 that's offering us the best risk reward right now. What's 0:20:23.920 --> 0:20:28.560 the most contrarian bet right now? Most contrarian bet right now? 0:20:28.600 --> 0:20:31.800 I guess in Starbucks is a name which we've owned 0:20:31.800 --> 0:20:35.520 in the portfolio for over a year now, probably eighteen 0:20:35.560 --> 0:20:37.600 months or so, and that's the name that reported earnings 0:20:37.680 --> 0:20:39.960 last night. That's the name that continues to be out 0:20:40.000 --> 0:20:42.400 of favor with investors. I do think when you listen 0:20:42.440 --> 0:20:45.080 to the call last night, there was some things that 0:20:45.119 --> 0:20:48.600 a bowl could continue to be positioned around, and that 0:20:48.680 --> 0:20:50.560 the last two months of the first quarter they had 0:20:50.600 --> 0:20:53.280 north of a three percent comp in the US. You know, 0:20:53.320 --> 0:20:55.000 as we look forward through the rest of the year, 0:20:55.040 --> 0:20:56.919 April might be a bit bumpy because it is a 0:20:56.920 --> 0:21:00.320 difficult comp with the unicorn frappuccino that they had year. 0:21:00.920 --> 0:21:02.760 But I think that stock has been very out of 0:21:02.800 --> 0:21:05.080 favor of the multiple is very very compressed to where 0:21:05.080 --> 0:21:08.240