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Speaker 1: Hello, and welcome to What Goes Up, a weekly markets podcast.

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Speaker 1: My name is Mike Reagan. I'm a senior editor at

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Speaker 1: Woomberg and Umbal Donna hik Across, asset reporter with Bloomberg,

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Speaker 1: and this week on the show, Well, as we sit

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Speaker 1: here today on Wednesday, August, Spire is now up almost

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Speaker 1: from its bear market low in the middle of June.

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Speaker 1: So is that it crisis over or is this just

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Speaker 1: another bear market rally that's doom to fail. And what

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Speaker 1: about those growth stocks? They're up even more after being

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Speaker 1: left for dead for value stocks earlier in the year.

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Speaker 1: We're gonna get into it with the chief investment officer

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Speaker 1: for the wealth management unit of a major Wall Street bank,

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Speaker 1: who is quite a bit more cautious about this market

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Speaker 1: than the people chasing this ferocious rebound. But first they'll

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Speaker 1: on I think as many listeners of the show, no

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Speaker 1: being a podcast co host such as it's a very

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Speaker 1: fulfilling job. But I think thanks for having listen. I

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Speaker 1: think listeners have probably picked up on though that my

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Speaker 1: real ambition is to be a game show host. Yeah,

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Speaker 1: I've noticed you're making the transition. I know, I know,

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Speaker 1: I'm trying. I'm working it on it every week. I

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Speaker 1: think I need better hair, I need more hairspray and

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Speaker 1: stuff like that. But we'll get there. We'll get there.

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Speaker 1: I can help you with that, and regular listeners will

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Speaker 1: know at the end of the show we do the

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Speaker 1: craziest things we saw in the market that week, and

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Speaker 1: I like to sort of make it like prices right,

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Speaker 1: although I'm definitely afraid of Bob Barker after seeing happy

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Speaker 1: Gilmore and seeing him punch out Happy Gilmore, so we

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Speaker 1: can't call it prices right. We can't not anymore. But

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Speaker 1: we got away with it for a long time. We did.

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Speaker 1: I haven't gotten punched, no angry letters from lawyers, but

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Speaker 1: a listener from London, Chris Whitman of Convergence Value Partners

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Speaker 1: in London, wrote in to suggest what I think is

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Speaker 1: the perfect title that Bob Barker cannot complain at all about,

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Speaker 1: which is what it is. The price is precise, Price

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Speaker 1: is precise. Can you say it's a tongue twister? It's

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Speaker 1: it's hard. Let me hear you say, Well, we know

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Speaker 1: I prefer prices, correct prices, correct prices, so we can

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Speaker 1: so we have prices correct and now prices precise I

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Speaker 1: think I like prices precise. I just know I'm going

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Speaker 1: to mess it up. Precise, precise price. Yeah, I know

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Speaker 1: I'll mess it up. Anyway. Well let's go with it

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Speaker 1: for this week. Anyway. If anybody else has any suggestions,

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Speaker 1: you can just tweet at us. Absolutely. But anyway, I

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Speaker 1: do want to bring in our guests. We're really lucky

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Speaker 1: to have her. It's Lisa Shallett, chief investment officer at

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Speaker 1: Morgan Stanley Wealth Management. Thanks so much for joining us, Lisa,

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Speaker 1: Thanks for having me at Leasta. I wanted to sort

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Speaker 1: of set the stage a little bit here because UM,

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Speaker 1: Morgan Stanley has gotten a lot of attention UH this

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Speaker 1: year rightly, so, you know, for being correct about being

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Speaker 1: cautious about this market. Your colleague Mike Wilson has a

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Speaker 1: year end target for the SMP at thirty nine D

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Speaker 1: not the lowest on the street, but you know, well

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Speaker 1: below average, about five points below average of the strategists

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Speaker 1: we survey. And you know it would mean an eighteen

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Speaker 1: percent drop on the year for for the index. UM.

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Speaker 1: And I was reading your weekly note from the Global

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Speaker 1: Investment Committee, UH, which you are the chair of I

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Speaker 1: believe the head of Let me just read the beginning

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Speaker 1: of it. Um, the Global Investment Committees base case is

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Speaker 1: a profits recession, not an economic recession. Earnings are vulnerable

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Speaker 1: to rise and costs a strong dollar, bulging inventories and

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Speaker 1: waning pricing pricing power. Um. And then you go on

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Speaker 1: to to point out about the hotness in the labor

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Speaker 1: market being sort of, you know, a risk to everything.

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Speaker 1: Today though, on Wednesday we got this CPI report. Uh

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Speaker 1: that surpris eyes a lot of people. Uh it does

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Speaker 1: you know, fingers cross, knuck on wood, everything else? Uh,

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Speaker 1: it signals perhaps inflation has peaked month over month. It

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Speaker 1: was flat. Um the headline number I think was but

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Speaker 1: down the eight point five a very low eight point

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Speaker 1: five percent from from nine point one. So I'm just curious,

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Speaker 1: is does the Wednesday CPI report and the market reaction

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Speaker 1: to it change at all your thinking? You know, does

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Speaker 1: it create any sort of silver linings in the clouds

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Speaker 1: that you see for the economy in the markets? Um? No,

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Speaker 1: not at all. I mean, uh, you know, look in fact,

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Speaker 1: um that the idea that inflation may have peaked in

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Speaker 1: our humble opinion may be correct directionally, but may also

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Speaker 1: be a little bit of a head fake. Uh, you know,

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Speaker 1: with regard to this idea that hey, game over problem solved.

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Speaker 1: The you know, the FED has conquered the day and

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Speaker 1: you know, FED credibility is back and all of that. Um,

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Speaker 1: you know, our gas is a lot of things have

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Speaker 1: gone right here visa V. Energy prices, visa V global

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Speaker 1: demand in Europe and China in particular, really being much

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Speaker 1: slower uh than global economists were calling for in the

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Speaker 1: month of July, which has helped ease a lot of

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Speaker 1: supply chain issues, has helped UH ease UH and take

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Speaker 1: some of the heat off some of the food parts

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Speaker 1: of inflation. Um. So our gas is that Yeah, directly,

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Speaker 1: this is right. But for the market to be, you know,

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Speaker 1: kind of celebrating as they have been since the middle

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Speaker 1: of June, again, our gases were way premature for that.

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Speaker 1: So Lisa, can you maybe talk a little bit more

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Speaker 1: about that. I want to ask you how much the

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Speaker 1: CPI print does to what extent does it relieve pressure

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Speaker 1: on the FED, And maybe you can talk a bit

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Speaker 1: about what you're expecting from their September meeting and through

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Speaker 1: the rest of the year. Yeah. Absolutely, so, uh, look,

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Speaker 1: good news for the FED is like I said, direction

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Speaker 1: is correct, right, We're not making new highs. And year

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Speaker 1: over year inflation compares, UH, it looks like nine point

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Speaker 1: one percent at least for now, is going to be

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Speaker 1: UH cycle peak on headline CPI inflation UM, so that

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Speaker 1: you know is directionally good. And if I'm Jerome Powell,

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Speaker 1: I probably do have a smile on my face and

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Speaker 1: and I'm glad that energy prices went my way. But

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Speaker 1: let's you know, get real here, people. I mean eight

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Speaker 1: point five percent on your headline and a core that

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Speaker 1: was really hunched at close to six percent UH is

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Speaker 1: nowhere near a sustainable level. It's three times your target

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Speaker 1: of two percent. And look, we know throughout history, if

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Speaker 1: Jerome Powell is really the student of history that he

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Speaker 1: claims to be, if he really thinks he's you know,

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Speaker 1: Paul Bulker, then he knows that it's gonna be very

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Speaker 1: hard for him to take his foot off the accelerator

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Speaker 1: on the Fed Funds rate until the Fed Funds rate

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Speaker 1: is approaching core cp I UH. And if a look

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Speaker 1: throughout history, UH, most beds that are trying to fight

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Speaker 1: inflation have to get to that point. So inflation coming

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Speaker 1: down towards something closer having core inflation come down to

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Speaker 1: something below four means you know, he still has about

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Speaker 1: another hundred and fifty hundred seventy five basis points to

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Speaker 1: go and Fed funds uh. And he's probably gonna have

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Speaker 1: to get there sooner rather than later. So to answer

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Speaker 1: your question, you know, September UH, you know was looking

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Speaker 1: like fifty. We had a brief moment last week on

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Speaker 1: the labor data which was super hot, where you know,

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Speaker 1: some exuberant folks said, oh, it's got to be seventy five,

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Speaker 1: and now we're back to fifty. UM, so we've kind

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Speaker 1: of round tripped. I don't think this is there's a

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Speaker 1: lot of new news in this other than the direction

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Speaker 1: is correct, but the levels are wrong. So do you

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Speaker 1: think the market pricing is right to think fifty in September?

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Speaker 1: I mean, is it is there any scenario where we

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Speaker 1: could go back to the old world basis points by September? Uh?

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Speaker 1: It would be hard to get to twenty five, I

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Speaker 1: think uh. And and that's just again the distance and

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Speaker 1: speed here between that core where core inflation is UH

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Speaker 1: and where our current Fed funds rate is. I just

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Speaker 1: I think they need to keep their their foot on

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Speaker 1: the accelerator. Obviously, if labor markets completely crap out. Uh,

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Speaker 1: you know, maybe they would, they would down shift to five.

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Speaker 1: But I think it would really take too bad labor reports,

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Speaker 1: meaning the one for August and the one for September,

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Speaker 1: which they won't have at the next meeting. I should

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Speaker 1: I should be clear for them to really downshift that much. Well,

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Speaker 1: speaking of the labor market, we also have that super

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Speaker 1: super good jobs number on Friday, and I'm wondering if

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Speaker 1: that also at all has changed your you on what

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Speaker 1: the FED might be doing or your outlook. It doesn't

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Speaker 1: change her outlook. To the contrary, it kind of reaffirms

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Speaker 1: the thesis that we've had out there for a while,

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Speaker 1: which is um that you know, we're gonna all look

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Speaker 1: back on the COVID pandemic as this massive generational shock

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Speaker 1: to the labor market. Um where we fundamentally restructured as

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Speaker 1: a society globally, how we think about work, about where

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Speaker 1: we work, how we work, how many days a week

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Speaker 1: we work, whether we work in essential jobs that are

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Speaker 1: deemed by our society as essential workers or not essential workers. Uh.

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Speaker 1: And this is really pretty profound. And so you know

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Speaker 1: what we've been articulating a thesis that says, Look, we

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Speaker 1: think that they're structural change to this labor market, whether

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Speaker 1: we're talking about more folks retiring, fewer immigrants, uh, entering

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Speaker 1: more folks and detaching from the labor market and and

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Speaker 1: going the entrepreneurial route or going the gig route. Uh.

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Speaker 1: And and this is a labor market that is much

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Speaker 1: more fluid, where people are much more willing to geographically relocate,

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Speaker 1: embrace the ideas of remote opportunities and live wherever they want.

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Speaker 1: And that's causing big demands client balances in the labor market.

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Speaker 1: And we think they're going to persist for a couple

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Speaker 1: of years now, keeping inflation uh somewhat above that two

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Speaker 1: percent target for the FED. That's interesting you bring that up,

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Speaker 1: because when I think about that, that flexibility of labor

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Speaker 1: um this year is one thing. Obviously this is super

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Speaker 1: tight labor market, but looking further out, is that potentially

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Speaker 1: sort of deflationary towards wages. Uh. You know, if I

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Speaker 1: can work in uh, you know, the middle of the

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Speaker 1: country instead of having to live in New York, because

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Speaker 1: that's sort of suppress wages in the longer run. You

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Speaker 1: do you think, Uh? No, actually not? And and The

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Speaker 1: reason is that, uh, companies, you know have jobs in

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Speaker 1: specific locations, the vast majority of companies, right, I mean,

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Speaker 1: Amazon maybe located and have its headquarters in one place,

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Speaker 1: but it needs workers to deliver packages. All fifty states

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Speaker 1: are all you know, uh whatever three countries around the world,

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Speaker 1: and so, um, you know, they need workers. So people

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Speaker 1: are you know, relocating and in transit. That's going to

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Speaker 1: drive up wages in the places that are quote unquote

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Speaker 1: maybe less desirable for you know, new employees to live

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Speaker 1: or or or to be um and you still have

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Speaker 1: to attract those employees to get the jobs done. At

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Speaker 1: least it Just to bring us back to the markets,

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Speaker 1: Mike mentioned at the top that stocks are up something

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Speaker 1: like fifteen percent since mid June, and I wanted to

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Speaker 1: ask you what, in your view is behind the recent

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Speaker 1: market resilience. Yeah, so, look, I think I think really

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Speaker 1: from January to June, you know, our analysis has been

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Speaker 1: that this has been a very very textbook bear market.

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Speaker 1: And what I mean by that is that, you know,

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Speaker 1: we saw a very clear, very well telegraphed pivot in

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Speaker 1: federal reserve policy that was on equivocally driven by a

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Speaker 1: FED that was massively behind the inflation curve. As a result,

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Speaker 1: the market had to discount a hike and Fed funds rates.

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Speaker 1: So real interest rates moved up and price earnings ratios

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Speaker 1: moved down. And it was in a very clear kind

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Speaker 1: of linear mathematical formula. And so the first you know,

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Speaker 1: draw down on the SMP five from jan to middle

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Speaker 1: of June, you know, it was very textbook. Uh. Really,

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Speaker 1: from there, I think we're getting a very typical reflexive

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Speaker 1: bear market rally, meaning you get a pause. It looks

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Speaker 1: like the Fed says we're going to now be dated dependent.

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Speaker 1: You know, folks think the data is going to get

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Speaker 1: more constructive. Uh. And you know, we we get folks

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Speaker 1: thinking that they're, you know, going to find some bargains,

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Speaker 1: and they go in and they find the bargains where

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Speaker 1: things have sold off the most uh. And some of

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Speaker 1: the biggest damage, as we know, was in the unprofitable

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Speaker 1: tech space, some of the meme stock space, uh, and

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Speaker 1: some of the more you know, core pieces of the

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Speaker 1: NASDAC and FANG uh. And so that's driven this hope

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Speaker 1: that the worst is over, has driven the bottom fishing

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Speaker 1: back in. But folks who are true students of the

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Speaker 1: market know that in every bearer market, we have these

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Speaker 1: retracement rallies. They are head fake rallies. And the reason

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Speaker 1: is is that we have to understand that it's not

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Speaker 1: enough for price earnings ratios to come in. Policy operates

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Speaker 1: with a lag, and it has an impact. It slows

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Speaker 1: the economy. And if the economy slows, corporate profits go down.

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Speaker 1: It's just a fact, it's math. And so we have

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Speaker 1: not seen those earnings estimates come down yet. Uh, and

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Speaker 1: that's really what we're waiting for. And you know what

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Speaker 1: what we have found, you know, perhaps you know most

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Speaker 1: um curious, is what we have said is that the

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Speaker 1: draw down on corporate profits is going to be relatively modest.

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Speaker 1: It's only gonna be ten to fifteen percent. And we

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Speaker 1: have people calling us parish. Um. You know, I remind people,

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Speaker 1: you know, in the last three were recessions, right ninety

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Speaker 1: one oh one, and and you know the great, the

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Speaker 1: great financial crisis. Um, you know, you're looking at drawdowns

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Speaker 1: and profitability anywhere from thirty five to six. Right, So

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Speaker 1: if SMP profits are down, you know, ten to fifteen

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Speaker 1: percent over the next twelve months, that that's not too bad.

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Speaker 1: Can I actually ask you to say more about the

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Speaker 1: idea that we are in a bear market rally, because

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Speaker 1: historically they tend to be very frequent, right, And I

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Speaker 1: think in one of your recent you said there there

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Speaker 1: may be more headwinds ahead and the market just isn't

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Speaker 1: pricing them in yet. And I want to ask you

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Speaker 1: what those are. Yeah, sure, I mean, you know, if

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Speaker 1: we think about, you know, some of the things that

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Speaker 1: could you know, suddenly become additional headwinds, not only economic slowing,

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Speaker 1: but one of the other things is, um, you know,

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Speaker 1: the US dollar. If in fact, the Fed starts easing

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Speaker 1: up on their rate hiking cycle, it's entirely possible that

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Speaker 1: the the US dollar, which has been extraordinarily strong, um

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Speaker 1: you know, moves in a different direction, and that, believe

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Speaker 1: it or not, for the average consumer, is inflationary, so

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Speaker 1: that you know, suddenly, you know, throws a wrench into

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Speaker 1: the works. Another you know, factor that that you know,

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Speaker 1: we remind people of is be careful what you wish for.

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Speaker 1: You know, Inflation is actually a really good thing for

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Speaker 1: companies in the long run, particularly companies that have brand franchise,

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Speaker 1: because they take pricing power and they pass it through.

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Speaker 1: And so if we look at the last couple of

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Speaker 1: quarters of uh SP earnings, you have a lot of

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Speaker 1: companies talking about their pricing power. Well, guess what guys have.

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Speaker 1: Inflation goes down, you lose your ability to pass on price,

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Speaker 1: and immediately you're taking a hit um to the bottom line.

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Speaker 1: So you can't have it both ways. And so things

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Speaker 1: like the change in the US dollar, things like a recession. Uh,

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Speaker 1: you know, things like a loss of pricing power are

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Speaker 1: all additional headwinds that we just don't think we're not hearing. Uh,

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Speaker 1: some of the clients who are buying into this bull

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Speaker 1: market rally or bear market rally, I should say, talk

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Speaker 1: about So if if I were an investor, I wanted

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Speaker 1: to screen for sort of stocks that have the best

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Speaker 1: type of pricing power, how how would you go about that?

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Speaker 1: I mean, is it as simple as looking for, you know,

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Speaker 1: whose sales growth is keeping up with inflation? Or do

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Speaker 1: you go, you know, go announcement by announcement to which

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Speaker 1: companies have actually raised prices. What's the best way to

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Speaker 1: to kind of you know, grasp that pricing power in

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Speaker 1: the market. Yeah, So, you know, the way we usually

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Speaker 1: think about pricing power is, you know, who are the

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Speaker 1: guys who are growing their sales more quickly than they're

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Speaker 1: growing their volumes than their unit volumes. And does it

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Speaker 1: intuitively make sense? Uh? You know, visa be the strength

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Speaker 1: of their brand franchise. Meaning if you are a consumer product,

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Speaker 1: if you're Nike sneakers for example, and suddenly you know

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Speaker 1: you've got you know, two new models, you're able to

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Speaker 1: to hold or increase prices at a rate faster than

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Speaker 1: your unit volume is selling through. UM, that would be

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Speaker 1: a suggestion to us that maybe you have uh, pricing power. Uh.

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Speaker 1: Some companies have already said, you know, they're starting to

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Speaker 1: see their their margins compress. UM, they're already feeling uh,

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Speaker 1: the lack of that pricing power where their costs are

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Speaker 1: growing faster than than their revenue. Is it as simple

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Speaker 1: as sort of the higher end? Uh? You know, companies

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Speaker 1: selling to the higher end consumers are going to be

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Speaker 1: able to do that better than the Walmart's and the

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Speaker 1: lower end. Uh. And no, not at all. I mean

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Speaker 1: we we have, you know, a bunch of franchises that

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Speaker 1: serve lower end consumers who you know seem to be

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Speaker 1: quote unquote getting it done. Look at McDonald's. McDonald's has

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Speaker 1: had UM some very good pricing power during during you know,

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Speaker 1: this this most recent part of the business cycle, so

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Speaker 1: you know it, really you've got to look at it

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Speaker 1: company by company. I feel like my inbox has never

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Speaker 1: been more divided in terms of some of the research

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Speaker 1: notes I'm getting. I have half of the thing of

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Speaker 1: the notes saying it's a bear market rally, in the

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Speaker 1: other half saying this this thing is for real. And

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Speaker 1: so I'm just wondering, how difficult is it to come

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Speaker 1: up with a thesis right now? And what are you

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Speaker 1: telling clients who are potentially looking to get invested. Yeah,

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Speaker 1: so look it it legitimately. Um, this is a complex environment. Um.

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Speaker 1: None of us who are in the business today, even

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Speaker 1: folks who have been doing it twenty thirty forty years,

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Speaker 1: have ever dealt with the aftermath of, you know, a

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Speaker 1: global public health pandemic. Uh, none of us have ever

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Speaker 1: you know, uh, you know, dealt with the amount of

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Speaker 1: stimulus that we got in a twelve month period, which

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Speaker 1: was close to nine trillion dollars, four from the Fed

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Speaker 1: and five from Washington. That equates to forty five percent

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Speaker 1: of annual GDP. I mean, just think about that for

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Speaker 1: a minute. How much liquidity is in this economy, and

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Speaker 1: so we've never really been in this situation where, um,

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Speaker 1: we're raising rates this fast from those heights. Uh. And

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Speaker 1: while a lot of people want to make the analogy

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Speaker 1: to to other times the economy has soft landed. Uh

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Speaker 1: and you know other times um, like you know when

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Speaker 1: Greenspan was able to soft land the economy, Um, he

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Speaker 1: wasn't facing kind of the geopolitical instability um that the

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Speaker 1: world is facing today, whether you're talking about relations between

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Speaker 1: you know, US and Russia and the Russia Ukraine War. Uh.

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Speaker 1: And the pressure that's putting on Europe, which is extraordinary.

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Speaker 1: I mean, think about if I told you that Europe

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Speaker 1: was going to be rationing energy. Okay, that's what's happening. Um,

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Speaker 1: So extraordinary pressures in the global economy. And then of

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Speaker 1: course there's US China, not to mention the dysfunction in

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Speaker 1: the US itself. So uh, you know, this is a

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Speaker 1: really really, really tough environment. UM to call that. Having

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Speaker 1: been said, right, as much as we all want to

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Speaker 1: talk about this time is different, we also know that

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Speaker 1: very rarely is it completely different. And usually quote unquote rhymes.

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Speaker 1: And so when we think about where could we be

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Speaker 1: rhyming with history. Right. The places we know we rhyme

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Speaker 1: with history is that typically, right, bear markets don't end

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Speaker 1: until certain things happen. Right, So bear markets tend not

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Speaker 1: to end right unless uh, you know, unemployment has has uh,

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Speaker 1: you know peaked. Uh. You know, bear markets that are

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Speaker 1: related to inflation and policy scares don't tend to end

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Speaker 1: until you know leading economic indicators trough. Uh. These kind

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Speaker 1: of bear markets don't tend to end until you know

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Speaker 1: the orders to inventory ratio you know, uh turns positive. Um.

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Speaker 1: So there's a bunch of things that we could say

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Speaker 1: if we're if we're looking for rhymes with history, we

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Speaker 1: think that we're still in this bear market and we've

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Speaker 1: got a ways to go. I was really hoping you

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Speaker 1: were going to rhyme that at the end there such

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Speaker 1: a such a lost opportunity. You're right, absolutely, but there's

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Speaker 1: a reason that reason. I work on wall. I have

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Speaker 1: a picture of jay Z on my wall. But do

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Speaker 1: you really I really do? Okay, Well, if you started

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Speaker 1: writing some wraps, by all means now you can debut

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Speaker 1: them on the podcast anytime, we would be happy to. Yeah,

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Speaker 1: But at least I I want to get back to

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Speaker 1: that notion of how growth seems to be back from

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Speaker 1: the dead, and I get the impression, Um, you're more of,

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Speaker 1: at least at the moment, you're more of a bottoms

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Speaker 1: up stock picker type than somebody wants to chase factors

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Speaker 1: back and forth. Um. But to me, what's fascinating about

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Speaker 1: growth is we you know, we had this period between

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Speaker 1: uh you know, the aftermath of the financial crisis and

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Speaker 1: COVID where it seemed like a simple equation, you know,

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Speaker 1: low growth, uh economy, low inflation, growth, stocks just take

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Speaker 1: off in that type of environment. Now we've had the pandemic,

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Speaker 1: the recovery. Obviously, value had its moment in the sun there.

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Speaker 1: The last month and a half, though, growth is out

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Speaker 1: performing again. UM. I know your skeptical on that growth rebound,

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Speaker 1: but I want to ask you basically two things. If

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Speaker 1: you could unpack for us why you're skeptical on on

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Speaker 1: the growth rebound. But also, is that sort of new

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Speaker 1: normal that we saw in that period between the GFC

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Speaker 1: and COVID where growth just was the perennial outperformer. Are

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Speaker 1: we ever going to get back to that? I mean,

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Speaker 1: to me, it seems like if the economy ever gets

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Speaker 1: back to normal, we'll go we'll revert back to that

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Speaker 1: sort of equation where growth is sort of the perennial favorite. Um,

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Speaker 1: is that notion just gone forever? You know, on the

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Speaker 1: other side of covid Um, No, I don't. Look, I

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Speaker 1: don't think it's gone forever. Here here's what i'd say. Look,

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Speaker 1: I'm in the camp that says that the period after

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Speaker 1: the Great Financial Crisis, where you know, the United States

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Speaker 1: economic growth was suppressed, where interest rates were suppressed, where

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Speaker 1: inflation was suppressed, where capital spending was slow, where you know,

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Speaker 1: productivity growth was full, uh, and you know wage growth

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Speaker 1: was mediocre. UM. That that's actually the outlier in history.

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Speaker 1: And while we can completely understand why in an environment

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Speaker 1: where long run real interest rates are consistently falling for

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Speaker 1: almost you know, a decade going on thirteen years, where

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Speaker 1: growth would structurally outperformed value. UM, we do think that,

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Speaker 1: you know, we have not killed the business cycle. And

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Speaker 1: because we haven't killed the business cycle, UM, we believe

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Speaker 1: that you want to, you know, very oftentimes own more

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Speaker 1: cyclical or more value oriented uh stocks. And we're not

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Speaker 1: sure that you don't want to this time, especially if

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Speaker 1: you're in the camp that we are that says, we're

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Speaker 1: pretty confident that we could actually pull off a soft

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Speaker 1: landing this time. It isn't a slam dunk that we're

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Speaker 1: going into this deep, deep recession where you have to

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Speaker 1: get ultra defensive and you have to only own uh

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Speaker 1: secular growers. Uh. And you know, our our bullishness on

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Speaker 1: the labor market is one component of that thesis. The

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Speaker 1: second component is we believe that capital spending is going

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Speaker 1: to remain pretty resilient and that one of the things

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Speaker 1: that's really different in this business cycle is that, you know,

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Speaker 1: COVID was a shock to business models and almost every

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Speaker 1: single business had to re engineer themselves and think about

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Speaker 1: how can I run this business with fewer people with

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Speaker 1: less human contact? Right? Uh? And that has unleashed a

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Speaker 1: level of innovation and capital spending an automation across every industry. Uh.

427
00:25:48,800 --> 00:25:50,920
Speaker 1: You know that we think is pretty profound and has

428
00:25:50,960 --> 00:25:53,879
Speaker 1: some legs. So that's a very long winded way of

429
00:25:54,000 --> 00:25:57,359
Speaker 1: us saying, Look, we don't think the business cycle is dead,

430
00:25:57,440 --> 00:26:02,720
Speaker 1: and therefore we don't think value uh investing is dead. Uh.

431
00:26:02,760 --> 00:26:05,240
Speaker 1: And you know, while there are a lot of growth

432
00:26:05,320 --> 00:26:09,439
Speaker 1: oriented stocks that I want to own, right, I don't

433
00:26:09,480 --> 00:26:13,680
Speaker 1: want to just own the nasdact blindly. I'm gonna pull

434
00:26:13,680 --> 00:26:18,280
Speaker 1: a mic and ask you a multi part question. Okay's

435
00:26:22,480 --> 00:26:24,800
Speaker 1: I don't like to do it typically, but so can

436
00:26:24,840 --> 00:26:27,800
Speaker 1: you talk about what you like within value and then

437
00:26:28,080 --> 00:26:31,080
Speaker 1: on all the way On the other end of the spectrum,

438
00:26:31,119 --> 00:26:34,680
Speaker 1: we've also had this resurgence in meme stocks and crypto,

439
00:26:34,760 --> 00:26:37,800
Speaker 1: and I'm wondering how you would go about characterizing what

440
00:26:38,400 --> 00:26:42,000
Speaker 1: is happening in terms of like the speculative stuff that's

441
00:26:42,000 --> 00:26:46,320
Speaker 1: seeing a resurgence. Yeah. So you know, look, I think

442
00:26:46,359 --> 00:26:50,400
Speaker 1: the speculative stuff is just as as defined it is speculative.

443
00:26:51,000 --> 00:26:54,840
Speaker 1: Uh It in our humble opinion was always premised on

444
00:26:55,119 --> 00:26:59,840
Speaker 1: you know, market momentum and liquidity and the greater full theory. Uh.

445
00:27:00,040 --> 00:27:03,280
Speaker 1: I think that that may be operating again here today.

446
00:27:03,480 --> 00:27:09,439
Speaker 1: Absolutely nothing has changed to make the value proposition of

447
00:27:09,440 --> 00:27:14,200
Speaker 1: of some of those um investing strategies any better. Uh.

448
00:27:14,240 --> 00:27:17,600
Speaker 1: You know, uh, now that we're six months into a

449
00:27:17,680 --> 00:27:21,080
Speaker 1: FED tightening cycle, I just I don't get it. I

450
00:27:21,160 --> 00:27:25,159
Speaker 1: understand that, you know, some inexperienced investors may look at

451
00:27:25,200 --> 00:27:28,320
Speaker 1: their charts and say, oh goodness, look here was the

452
00:27:28,400 --> 00:27:31,720
Speaker 1: high and now here's where it is. I'm getting a bargain. Um,

453
00:27:31,920 --> 00:27:35,440
Speaker 1: I just I don't see that there was fundamental value

454
00:27:35,480 --> 00:27:38,120
Speaker 1: there to begin with, so so we wouldn't be going there.

455
00:27:38,480 --> 00:27:40,880
Speaker 1: But where is there value in the market. I think

456
00:27:40,920 --> 00:27:45,840
Speaker 1: it's there's a lot of places, a lot of pockets, right. So, Uh,

457
00:27:45,880 --> 00:27:48,720
Speaker 1: you know, we're buying some of the more traditional value,

458
00:27:48,800 --> 00:27:53,600
Speaker 1: which is in financials and energy and industrials and materials

459
00:27:53,600 --> 00:27:57,320
Speaker 1: and mining, but we're also finding value throughout the healthcare

460
00:27:58,560 --> 00:28:04,720
Speaker 1: uh sector, We're finding some across uh consumer services. Uh,

461
00:28:04,760 --> 00:28:08,359
Speaker 1: there's some interesting things we think in home building. You know,

462
00:28:08,480 --> 00:28:12,080
Speaker 1: our view is, yes, have we seen you know, a

463
00:28:12,160 --> 00:28:15,359
Speaker 1: meteoric rise in mortgage rates and has that slowed the

464
00:28:15,359 --> 00:28:18,879
Speaker 1: housing market? Yes? Absolutely, But do we think the housing

465
00:28:18,920 --> 00:28:23,119
Speaker 1: market is going to go into a multi year recession. No,

466
00:28:23,359 --> 00:28:27,800
Speaker 1: we don't because we think that there's fundamentals supply demanding balances, UM,

467
00:28:27,840 --> 00:28:29,840
Speaker 1: and so we think that there's some interesting to buy

468
00:28:29,880 --> 00:28:34,919
Speaker 1: thanks to buy even among home builders. UM. Semiconductors we

469
00:28:35,000 --> 00:28:39,280
Speaker 1: know have you know had a very uh typical textbook

470
00:28:39,600 --> 00:28:43,760
Speaker 1: cyclical sell off most recently. Uh that there's going to

471
00:28:43,840 --> 00:28:46,560
Speaker 1: be a time probably in the next three to six

472
00:28:46,600 --> 00:28:49,760
Speaker 1: months where I want to own semi's again. So you know,

473
00:28:49,880 --> 00:28:53,080
Speaker 1: we're looking at all these these areas. Someday they're going

474
00:28:53,120 --> 00:28:57,360
Speaker 1: to get semiconductor supplying demand in equilibrium. Someday. I don't

475
00:28:57,360 --> 00:28:59,720
Speaker 1: know if it will be in our lifetime, but some

476
00:29:00,240 --> 00:29:17,280
Speaker 1: someday it's gonna it's gonna happen, Lisa, you know they

477
00:29:17,320 --> 00:29:21,360
Speaker 1: always warned guys like me at Thanksgiving, don't talk about religion,

478
00:29:21,400 --> 00:29:25,280
Speaker 1: don't talk about politics. Uh, the bad news for you,

479
00:29:25,360 --> 00:29:27,320
Speaker 1: as though this isn't Thanksgiving dinner. So I do want

480
00:29:27,360 --> 00:29:31,040
Speaker 1: to ask about politics a little bit, uh, because you know,

481
00:29:31,080 --> 00:29:32,880
Speaker 1: the one thing you hear over and over again, and

482
00:29:32,880 --> 00:29:36,120
Speaker 1: you read the researches that look mid term years, there's

483
00:29:36,160 --> 00:29:38,920
Speaker 1: like a seasonality to the election cycle. In mid term

484
00:29:39,000 --> 00:29:42,760
Speaker 1: years can be kind of uh historically a week time

485
00:29:42,800 --> 00:29:45,680
Speaker 1: for the equity market. Obviously, there's so much going else

486
00:29:45,720 --> 00:29:48,840
Speaker 1: going on in the economy this year that that who

487
00:29:48,880 --> 00:29:51,800
Speaker 1: knows if that's really playing any role at all. But

488
00:29:51,880 --> 00:29:54,120
Speaker 1: I want to ask a how are you thinking about

489
00:29:54,120 --> 00:29:56,360
Speaker 1: these mid terms? If if there is any risk or

490
00:29:56,400 --> 00:30:01,920
Speaker 1: opportunities in the market, uh from what's expected. And also

491
00:30:02,040 --> 00:30:04,560
Speaker 1: all this this flurry of legislation that we've just seen.

492
00:30:04,600 --> 00:30:06,760
Speaker 1: The chips Act. You know, you're talking about semi conductors,

493
00:30:07,000 --> 00:30:11,040
Speaker 1: uh and the Inflation Reduction Act, which is very heavily

494
00:30:11,360 --> 00:30:13,800
Speaker 1: on green energy and that sort of thing. Has the

495
00:30:13,840 --> 00:30:16,880
Speaker 1: market sort of priced out all the positives and negatives

496
00:30:16,960 --> 00:30:19,360
Speaker 1: from from all this? Or are you know, are there

497
00:30:19,400 --> 00:30:21,880
Speaker 1: any opportunities that are popping out that you think the

498
00:30:21,880 --> 00:30:25,840
Speaker 1: market might have missed? YEA so fantastic question, because again

499
00:30:25,920 --> 00:30:30,200
Speaker 1: I think right now, UM, the market is maybe not

500
00:30:30,400 --> 00:30:35,520
Speaker 1: fully focusing enough on Washington. So, UM, you know, just

501
00:30:35,560 --> 00:30:39,400
Speaker 1: to answer a second part of your question first, UM,

502
00:30:39,440 --> 00:30:42,880
Speaker 1: you know, I think that some of the legislative dynamics

503
00:30:42,920 --> 00:30:48,160
Speaker 1: coming out of Washington are extraordinarily positive, uh for some

504
00:30:48,280 --> 00:30:50,800
Speaker 1: key sectors. To your point, Uh, the amount of money

505
00:30:50,880 --> 00:30:56,840
Speaker 1: that's going to be invested in domestic semiconductor uh capacity unprecedented. Uh.

506
00:30:56,880 --> 00:30:59,560
Speaker 1: The amount of money that's going to uh, you know,

507
00:30:59,680 --> 00:31:03,200
Speaker 1: clean energy with this uh what's left of the build

508
00:31:03,240 --> 00:31:06,920
Speaker 1: back batter bill? Um. I can't call it the Inflation

509
00:31:06,920 --> 00:31:09,600
Speaker 1: Reduction Act. I just can't bring myself to do that.

510
00:31:09,960 --> 00:31:12,840
Speaker 1: But you know, and also just flying under the radar,

511
00:31:13,240 --> 00:31:15,680
Speaker 1: you guys may have may have seen the Department of

512
00:31:15,800 --> 00:31:19,440
Speaker 1: Energy is doing a two point five billion dollar interest

513
00:31:19,520 --> 00:31:22,960
Speaker 1: free loan to general motors to help them uh invest

514
00:31:23,080 --> 00:31:27,480
Speaker 1: in electric vehicle battery battery capacity. So there's all of

515
00:31:27,520 --> 00:31:31,440
Speaker 1: these kind of initiatives which are also very good for

516
00:31:31,520 --> 00:31:35,200
Speaker 1: economic growth. They're very good for capital spending, as we

517
00:31:35,320 --> 00:31:38,320
Speaker 1: know from history. As much as people don't like it

518
00:31:38,400 --> 00:31:42,160
Speaker 1: from a political perspective or from a debt and deficit perspective,

519
00:31:42,400 --> 00:31:45,840
Speaker 1: they do tend to create jobs and they do tend um,

520
00:31:45,880 --> 00:31:50,440
Speaker 1: you know, to deepen capital and productivity in the long run.

521
00:31:50,440 --> 00:31:54,120
Speaker 1: And I don't think that I'm seeing the market recognize

522
00:31:54,320 --> 00:31:58,320
Speaker 1: you know, all of that yet, nor are they necessarily

523
00:31:58,400 --> 00:32:01,400
Speaker 1: recognizing that they're are going to be a handful of

524
00:32:01,440 --> 00:32:06,520
Speaker 1: companies uh, by the way, who have to pay taxes

525
00:32:06,960 --> 00:32:11,080
Speaker 1: who have not historically paid taxes. Uh. And that number

526
00:32:11,160 --> 00:32:13,600
Speaker 1: is going to be about three hundred, you know, billion

527
00:32:13,600 --> 00:32:18,840
Speaker 1: dollars off of SMP five hundred earnings in three And

528
00:32:18,880 --> 00:32:22,920
Speaker 1: again I don't see earnings estimates coming down uh to

529
00:32:23,040 --> 00:32:26,680
Speaker 1: reflect that yet. Uh. And so you know, I'm not

530
00:32:26,760 --> 00:32:30,680
Speaker 1: exactly sure why analysts are being um, you know, so

531
00:32:31,160 --> 00:32:34,480
Speaker 1: uh so reticent about what. Maybe it's it's it's faith

532
00:32:34,520 --> 00:32:38,040
Speaker 1: in the perennial ability for companies that dodge taxes perhaps

533
00:32:38,200 --> 00:32:41,560
Speaker 1: of course, of course, of course, of course, but but

534
00:32:41,640 --> 00:32:43,040
Speaker 1: you know, there's a little bit of that that I

535
00:32:43,040 --> 00:32:44,560
Speaker 1: feel like it is right in front of their face.

536
00:32:44,640 --> 00:32:47,040
Speaker 1: But to the bigger part of your question, which is

537
00:32:47,040 --> 00:32:49,920
Speaker 1: the mid terms, Um, you know, without getting to the

538
00:32:49,960 --> 00:32:52,320
Speaker 1: substance of the mid terms, because I don't know that

539
00:32:52,360 --> 00:32:57,120
Speaker 1: there is going to be any substance to the mid terms. Um. Uh.

540
00:32:57,160 --> 00:32:59,640
Speaker 1: What I think is the bigger risk that no one

541
00:32:59,680 --> 00:33:02,040
Speaker 1: has talking about. And I know that it's you know,

542
00:33:02,560 --> 00:33:07,000
Speaker 1: great fodder for network news, and it's great fodder you know,

543
00:33:07,200 --> 00:33:11,240
Speaker 1: for you know, the Internet and you know politically oriented

544
00:33:11,560 --> 00:33:15,960
Speaker 1: uh media outlets. Um. You know, to to ramp up

545
00:33:16,000 --> 00:33:20,160
Speaker 1: the rhetoric here. Um, but I think it's getting increasingly dangerous.

546
00:33:20,200 --> 00:33:24,440
Speaker 1: And I'm not just talking about you know, as an American.

547
00:33:24,800 --> 00:33:27,920
Speaker 1: You know, the the issue about is our democracy under assault.

548
00:33:28,720 --> 00:33:33,040
Speaker 1: It's really quite more pedestrian than that. And that is uh,

549
00:33:33,080 --> 00:33:36,720
Speaker 1: you know, the United States capital markets, um, are the

550
00:33:36,760 --> 00:33:41,160
Speaker 1: destination for global capital. We are the world's reserve currency.

551
00:33:41,320 --> 00:33:45,480
Speaker 1: The US dollar is strong because of that. That gives

552
00:33:45,520 --> 00:33:50,040
Speaker 1: Americans extraordinary purchasing power. It also allows us to finance

553
00:33:50,280 --> 00:33:56,000
Speaker 1: what are increasingly humongous debts uh at below market rates

554
00:33:56,200 --> 00:33:59,960
Speaker 1: that we don't necessarily acknowledge every day. And so I think,

555
00:34:00,000 --> 00:34:03,280
Speaker 1: and if we get into a scenario where, you know,

556
00:34:03,400 --> 00:34:08,320
Speaker 1: people think that it is normal to litigate the outcome

557
00:34:08,360 --> 00:34:12,160
Speaker 1: of elections and not seed com if we get to

558
00:34:12,200 --> 00:34:15,480
Speaker 1: a place where we're not seeding congressmen in three, four

559
00:34:15,560 --> 00:34:19,799
Speaker 1: or five states because we're litigating outcomes, I think that

560
00:34:19,880 --> 00:34:23,480
Speaker 1: we've got to really start thinking about that. You know

561
00:34:23,640 --> 00:34:28,759
Speaker 1: that that maybe this you know, politics, political war has

562
00:34:28,800 --> 00:34:32,920
Speaker 1: gone too far. Because our credibility in the world matters.

563
00:34:33,000 --> 00:34:36,880
Speaker 1: It matters if you're if you're an investor in American

564
00:34:36,920 --> 00:34:41,760
Speaker 1: capital markets, you're a capitalist. This matters, and and people

565
00:34:41,800 --> 00:34:46,360
Speaker 1: need to start behaving as if it matters. And I'm

566
00:34:46,360 --> 00:34:48,800
Speaker 1: in the camp that says, if we keep going down

567
00:34:48,800 --> 00:34:52,160
Speaker 1: this path, there are going to be implications for the

568
00:34:52,200 --> 00:34:56,799
Speaker 1: financial markets with regard to people's willingness uh and non

569
00:34:56,960 --> 00:35:02,440
Speaker 1: US citizens willingness um to engage. I think that's a

570
00:35:02,480 --> 00:35:06,040
Speaker 1: super super important point that really hasn't resonated with a

571
00:35:06,080 --> 00:35:08,799
Speaker 1: lot of people, especially if litigating those outcomes involves billy

572
00:35:08,880 --> 00:35:12,680
Speaker 1: clubs and you know, fighting with each other with flags

573
00:35:12,719 --> 00:35:17,600
Speaker 1: and breaking windows. Lisa really really appreciate Uh, your your

574
00:35:17,640 --> 00:35:20,720
Speaker 1: thoughts today. I think we only have a limited amount

575
00:35:20,719 --> 00:35:23,520
Speaker 1: of time left, so uh, we can't let you go

576
00:35:23,680 --> 00:35:26,600
Speaker 1: without getting to our crazy things of the week. So

577
00:35:26,880 --> 00:35:30,960
Speaker 1: I hope you came prepared, Uh, vill Donald, let's start

578
00:35:31,000 --> 00:35:34,560
Speaker 1: with you, okay, minus courtesy of my friend Julia Morpurgo.

579
00:35:34,719 --> 00:35:36,879
Speaker 1: She's in the London office, so you remember I took

580
00:35:36,880 --> 00:35:38,959
Speaker 1: a trip there and hung out with her a couple

581
00:35:38,960 --> 00:35:41,880
Speaker 1: of weeks ago. But she had this story on Domino's

582
00:35:41,960 --> 00:35:46,560
Speaker 1: Pizza leaving Italy. So the last of Domino's twenty nine

583
00:35:46,600 --> 00:35:51,360
Speaker 1: branches has closed in Italy after having just started in

584
00:35:51,400 --> 00:35:54,680
Speaker 1: the country seven years ago, and the company had borrowed

585
00:35:54,800 --> 00:35:58,200
Speaker 1: very heavily and had planned to open eight hundred and

586
00:35:58,239 --> 00:36:03,320
Speaker 1: eight stores. I'd love to meet the strategic genius who decided,

587
00:36:03,400 --> 00:36:06,000
Speaker 1: you know, what Italy needs is some Domino's pizzas and

588
00:36:08,320 --> 00:36:11,640
Speaker 1: that that is a great one. That's pretty good. How

589
00:36:11,800 --> 00:36:13,879
Speaker 1: about you, Lisa, have you seen anything crazy this week?

590
00:36:15,280 --> 00:36:21,799
Speaker 1: H crazy? I'd probably not for publication on this. Go

591
00:36:21,840 --> 00:36:26,360
Speaker 1: ahead and spill. That's fair, all right, I'll give you

592
00:36:26,400 --> 00:36:29,880
Speaker 1: mine then before we leave. Um, Vildonna, have you ever

593
00:36:29,880 --> 00:36:32,719
Speaker 1: seen the movie Greece? Of course? Of course, okay, good.

594
00:36:32,719 --> 00:36:34,560
Speaker 1: I don't know. I never know with your generation, if

595
00:36:34,560 --> 00:36:36,320
Speaker 1: you've seen the classics, I know Lisa's seen it. I

596
00:36:36,320 --> 00:36:38,359
Speaker 1: don't even have to ask if Lisa, yes, thank you.

597
00:36:40,080 --> 00:36:43,160
Speaker 1: I even know that you know Olivia Newton John passed

598
00:36:43,200 --> 00:36:46,719
Speaker 1: this week and you know her co star John Travolta.

599
00:36:47,400 --> 00:36:52,080
Speaker 1: You know couple, uh that they will You know that

600
00:36:52,160 --> 00:36:55,480
Speaker 1: he sent his very warm condolence. Yeah, so r I

601
00:36:55,560 --> 00:36:58,759
Speaker 1: p rest in peace to Olivia Newton John and in

602
00:36:58,840 --> 00:37:02,160
Speaker 1: her honor. I have a uh Grease related crazy thing.

603
00:37:02,320 --> 00:37:06,040
Speaker 1: It's an auction coming up um. And this information is

604
00:37:06,080 --> 00:37:09,440
Speaker 1: courtesy the Robb Report website. By the way, remember the

605
00:37:09,520 --> 00:37:13,840
Speaker 1: drag race scene in Greece where John Travolta races the

606
00:37:14,160 --> 00:37:16,920
Speaker 1: bad guy who's known as Creator Face. By the way,

607
00:37:17,040 --> 00:37:19,200
Speaker 1: it was on back then, if you won the drag race,

608
00:37:19,640 --> 00:37:21,879
Speaker 1: you not only won the car, you also won the girl.

609
00:37:22,040 --> 00:37:24,400
Speaker 1: I don't know. I don't know if that's still valid

610
00:37:24,480 --> 00:37:28,080
Speaker 1: these days. Hopefully we've we've progressed past that. But that

611
00:37:28,160 --> 00:37:30,279
Speaker 1: used to be the case. So he won not only

612
00:37:30,320 --> 00:37:32,960
Speaker 1: the hot rod but Olivia Newton John. So a very

613
00:37:32,960 --> 00:37:38,600
Speaker 1: successful race for John, but the bad guy's car, uh,

614
00:37:38,680 --> 00:37:43,640
Speaker 1: it was the black Mercury hot rod had the flames

615
00:37:43,680 --> 00:37:46,720
Speaker 1: on the side and everything that is up for auction.

616
00:37:46,880 --> 00:37:50,920
Speaker 1: It comes complete with an autograph on the dashboard. Uh

617
00:37:51,080 --> 00:37:54,319
Speaker 1: from Olivia Newton John Sandy herself, which who I gotta say.

618
00:37:54,360 --> 00:37:56,279
Speaker 1: I think every guy my age had a crush on

619
00:37:56,480 --> 00:37:59,120
Speaker 1: back in the day. Uh, but only once she went bad,

620
00:37:59,200 --> 00:38:01,200
Speaker 1: when she went bad with the leather pants and and

621
00:38:01,239 --> 00:38:04,600
Speaker 1: the that's that's that's that's what you want. A lot

622
00:38:04,640 --> 00:38:09,880
Speaker 1: of hearts with that look. But so it's time to

623
00:38:09,960 --> 00:38:15,359
Speaker 1: play the prices precise. Say let me hear you say,

624
00:38:15,360 --> 00:38:19,319
Speaker 1: it's time to play the prices precise. Now it's had

625
00:38:19,320 --> 00:38:20,759
Speaker 1: a lot up for sale yet, so all we know

626
00:38:20,880 --> 00:38:23,600
Speaker 1: is what the auction house believes will be the range.

627
00:38:23,640 --> 00:38:25,440
Speaker 1: So let's go at the high end of the range.

628
00:38:26,120 --> 00:38:28,160
Speaker 1: Uh do you start? What do you think the high

629
00:38:28,360 --> 00:38:30,839
Speaker 1: end of the range. And I'm shielding my my notes here,

630
00:38:30,880 --> 00:38:33,840
Speaker 1: so sitting next to you, Okay, I'm going to go

631
00:38:33,880 --> 00:38:37,279
Speaker 1: with two million, two million dollars, two million dollars. No, No,

632
00:38:37,320 --> 00:38:41,000
Speaker 1: I want to advise one point to one point two million,

633
00:38:41,040 --> 00:38:44,840
Speaker 1: one point three million, one point three million, is Lisa,

634
00:38:44,960 --> 00:38:49,200
Speaker 1: is that price precise or you know prices precise? Rules

635
00:38:49,480 --> 00:38:52,319
Speaker 1: might you say, is that price correct? You could say

636
00:38:52,360 --> 00:38:54,400
Speaker 1: that one you could say that, but I am I

637
00:38:54,600 --> 00:38:56,120
Speaker 1: that is an honor of what was the guy's name,

638
00:38:56,400 --> 00:39:00,319
Speaker 1: Chris Whitman in London who gave us that precise at Lesa.

639
00:39:00,400 --> 00:39:02,319
Speaker 1: Remember the you know you can go over or under.

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Speaker 1: You don't have to. You don't have to give an

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00:39:03,760 --> 00:39:08,440
Speaker 1: exact dollar figure. I think you're over. I think this

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00:39:08,520 --> 00:39:15,359
Speaker 1: is why she's a chief investment office and your every

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Speaker 1: auction house's dream. You're always like a ten billion dollars

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00:39:19,920 --> 00:39:23,160
Speaker 1: for that baseball card of the guy who never played

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00:39:24,000 --> 00:39:29,960
Speaker 1: high and seven d for the Mercury hot rod. Hell's

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Speaker 1: Chariot was the name of the car. But here's the ques,

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Speaker 1: here's the question. What did the n f T of it? Right? Yes,

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00:39:39,880 --> 00:39:41,439
Speaker 1: first we have to blow it up, and I guess

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00:39:41,440 --> 00:39:43,239
Speaker 1: you videotape that and make it an n f T.

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00:39:43,480 --> 00:39:45,160
Speaker 1: So we'll see. We'll check back on that and see

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00:39:45,160 --> 00:39:47,560
Speaker 1: if that's what happened. But at least I know you've

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00:39:47,560 --> 00:39:50,239
Speaker 1: got a busy day ahead and needs to get on

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00:39:50,320 --> 00:39:52,879
Speaker 1: with it. We can't thank you enough if your your

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00:39:52,920 --> 00:39:55,279
Speaker 1: insights and your time today, and I hope we can

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Speaker 1: have you back again in the future. Thank you guys,

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Speaker 1: a lot of fun. Thank you Lisa, take care, Bye bye,

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00:40:09,520 --> 00:40:11,760
Speaker 1: What Goes Up. We'll be back next week and something.

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00:40:11,800 --> 00:40:14,520
Speaker 1: You can find us on the Bloomberg Terminal website and app,

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00:40:14,680 --> 00:40:17,600
Speaker 1: or wherever you get your podcasts. We love it if

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00:40:17,600 --> 00:40:19,520
Speaker 1: you took the time to rate and review the show

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00:40:19,640 --> 00:40:22,920
Speaker 1: on Apple Podcasts so more listeners can find us. And

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00:40:23,000 --> 00:40:25,880
Speaker 1: you can find us on Twitter, follow me at Reaganonymous

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00:40:26,520 --> 00:40:29,919
Speaker 1: well Donna hierarch is at Bildonna hierarch. You can also

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Speaker 1: follow Bloomberg Podcasts at podcasts. What Goes Up is produced

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00:40:34,719 --> 00:40:37,440
Speaker 1: by Stacy Wang. Thanks for listening, See you next time.