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Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Tom Keene along
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Speaker 3: Joining us ow Lori Calvasina, RBC Capital Markets, Laura. There's
Speaker 3: a brutal draw down in the standard and ports five
Speaker 3: hundred half a percent over the weekend, lots of gloom OMG.
Speaker 3: Big tech is done? Is big Tech done stuff?
Speaker 4: And I think, I you know, I do think ultimately
Speaker 4: this market will rotate, But I also understand why it's
Speaker 4: having trouble doing so. And I think part of the
Speaker 4: reason why it's having trouble doing so is all the
Speaker 4: economic excitement that we were seeing, you know, I think
Speaker 4: we saw a lot of it in February where we
Speaker 4: saw GDP forecasts for twenty twenty four just ratcheted up
Speaker 4: really really fast, in a hurry, in a big way.
Speaker 4: We're just not getting that. If I look at the
Speaker 4: twenty twenty five GDP forecast on the on the ECFS,
Speaker 4: I think it's ECFC on Bloomberg is the function you
Speaker 4: can track what the cell side economists are saying every week,
Speaker 4: and that's and stuff from one point seven to one
Speaker 4: point eight percent, and that's still a below trend level.
Speaker 4: If you look at some of the quarterly numbers, we're
Speaker 4: headed into kind of a softer patch of below trend
Speaker 4: type GDP that is just not the kind of macro
Speaker 4: backdrop that typically sees cyclical small caps and value be
Speaker 4: large caps and growth. So I think there's this itch
Speaker 4: that this growth trade is over valued. It's crowded, you know,
Speaker 4: it's sort of the earnings expectations are decelerating. On the
Speaker 4: one hand, that all suggests you should be moving out,
Speaker 4: But on the other hand, you really need these economic
Speaker 4: tailwinds and they're just not there. So you've just got
Speaker 4: these cross currents that are fighting with each other right now.
Speaker 5: Laurie, are you surprised that in a world where we
Speaker 5: came into this twenty twenty four and the mark was
Speaker 5: discounting six FED rate cuts and now we're down to
Speaker 5: something like one or two despite that trend in you
Speaker 5: know FED out look the S and P five hundred
Speaker 5: sup fifteen percent. Does that surprise you?
Speaker 4: So I think that it makes sense to me, again
Speaker 4: in the context of that ratcheting up of economic expectations
Speaker 4: that we saw for twenty twenty four earlier. If you
Speaker 4: go back and look at the GDP forecast for twenty
Speaker 4: four last summer, it was tracking at point six percent.
Speaker 4: Zero to two percent is a lousy environment for the
Speaker 4: equity market. You typically see stocks go down when you're
Speaker 4: an economic purgatory like that. But two to four percent
Speaker 4: and now twenty twenty four is tracking around two point
Speaker 4: four that's typically a very solid environment for the stock market.
Speaker 4: The average changes, I think you're like twelve thirteen percent
Speaker 4: somewhere in there. So we transitioned from that idea that
Speaker 4: we're stuck in economic purgatory to it's actually going to
Speaker 4: be a pretty good year economically, and I think that
Speaker 4: really overcame the you know, the kind of ratcheting down
Speaker 4: of FED hopes and dreams because it was happening for
Speaker 4: good reasons.
Speaker 5: So in a world where it seems higher for longer
Speaker 5: in terms of rates, here what sectors screen well for
Speaker 5: you guys.
Speaker 4: I don't think that it's you know, it's any one
Speaker 4: sector that you can point to because of that. I
Speaker 4: think you've got to look at a lot of different factors,
Speaker 4: and I think sector choices are very very difficult these days.
Speaker 4: I do think that if we can sort of get
Speaker 4: the economic tailwinds back on track, then a sector like
Speaker 4: financials makes a lot of sense. It's very positively correlated
Speaker 4: with consumer confidence trends tends to outperform when consumer confidence
Speaker 4: is rising. These companies don't have a lot of just
Speaker 4: sort of innate growth anymore, but they tend to really
Speaker 4: be kind of viewed as the plumbing of the economy.
Speaker 4: So I think that's one area you can look at,
Speaker 4: and valuations are still very favorable. I think other than that,
Speaker 4: if you think about sort of higher for longer, you
Speaker 4: have to go to the root causes of that, And
Speaker 4: I do think inflation ultimately is a little bit higher
Speaker 4: than what we've been used to, which would point you
Speaker 4: to I think things like energy materials, you know, some
Speaker 4: of the commodity sectors.
Speaker 3: Well, that's where I want to go. Bank of America.
Speaker 3: Laurie just published Nea Coda over in Europe, and you
Speaker 3: know qu she says, buy the French dip. You know
Speaker 3: it's a B fund and what special sauce and all that,
Speaker 3: but she's going to buy the French dip with all
Speaker 3: that politics, Laurie in the American markets, Now, where is
Speaker 3: your French dip? Where is the opportunity of something that's
Speaker 3: pulled back and you say, well, finally I can buy.
Speaker 4: So you know, if we look at valuations, I do
Speaker 4: again go back to energy, I go back to financials.
Speaker 4: Those are still screening very very well on our valuation framework,
Speaker 4: and energy, while it got off to a great start
Speaker 4: of the year in terms of relative performance, has really
Speaker 4: faded recently. So that's one that we're keeping an eye
Speaker 4: on that. You know, I think that people keep looking
Speaker 4: at small caps. I'm sort of sticking on the sidelines
Speaker 4: with those for now. But you know, we have noticed
Speaker 4: that if you look at the funds flow data, you're
Speaker 4: starting to see passive money come back into the small
Speaker 4: caps space recently. If you look at the latest CPF
Speaker 4: our Data. So I think that's an area to watch.
Speaker 4: But frankly, I'm just not convinced that it's going to
Speaker 4: really be able to take off in a sustainable way
Speaker 4: until the economic tail winds are back and until you
Speaker 4: get the cuts in sight.
Speaker 3: G Lori Kelvisina ce Michelle, Principal asset Management, and she's
Speaker 3: got a wonderful, wonderful global perspective tied into what do
Speaker 3: you do domestically as well? Is the rest of the
Speaker 3: world in love with us big caps? Do they love
Speaker 3: does the city? Does the city love Nvidia as much
Speaker 3: as we do?
Speaker 6: Yes?
Speaker 7: I think they have to look at the numbers and
Speaker 7: it's undeniable the strength. And I think the thing that
Speaker 7: you continue to see is frustration, maybe that people hadn't
Speaker 7: increased their exposure before so.
Speaker 3: It was only ras. So this is important. You started this,
Speaker 3: you know, as like third week or whatever. Finance. Do
Speaker 3: you believe in window dressing against June whatever? Twenty five,
Speaker 3: Paul June thirty. I know if I don't want enough Apple,
Speaker 3: I look like an idiot, exactly right.
Speaker 5: So I mean you get Nvidio bigger than Apple, bigger
Speaker 5: in some of these other names. I mean it kind
Speaker 5: of came out of nowhere. But how do you think
Speaker 5: about those big tech names these days? To do we
Speaker 5: chase them or do we try to find some other opportunities.
Speaker 7: So we think that you if you don't already have exposure,
Speaker 7: it's probably not the best time to be adding exposure.
Speaker 7: But you also don't want to be reducing your exposure.
Speaker 8: At this point.
Speaker 7: We do think there's other opportunities in the market. We
Speaker 7: are expecting a broadening out in the rating, but again,
Speaker 7: this is not going to be anything which is like
Speaker 7: what you've seen for the big cap space. It's not
Speaker 7: going to be such a significant move in the broader market.
Speaker 7: But given the valuations where they are today, and given
Speaker 7: you still got a fairly strong backdrop. Okay, the macromatrup
Speaker 7: is slowing, but it's fairly strong. So you do want
Speaker 7: to have exposure to other parts of the market. And
Speaker 7: I think you know, if you look at financials, if
Speaker 7: you look at industrials, I think there are pockets which
Speaker 7: can do well, but not only just in the US.
Speaker 7: I think you can look outside the US, Latin America,
Speaker 7: parts of Asia. They also look pretty attractive.
Speaker 5: How do we think about valuation here just broadly defined.
Speaker 5: I mean I would argue that it seems like the
Speaker 5: US market would be fully valued to be generous, and
Speaker 5: then I need to be looking at Europe or Asia.
Speaker 5: I mean when you talk to your global clients and
Speaker 5: is that what they're talking about?
Speaker 7: Yeah, I mean it's always been a situation that they
Speaker 7: look across as the global map and they say, Wow,
Speaker 7: the US is so expensive. Why is there nobody nowhere
Speaker 7: else that you can increase exposure to? And I think
Speaker 7: certainly for this year there has been opportunities Europe. You
Speaker 7: mentioned it is relatively cheap, but actually at this point
Speaker 7: in time, somewhat concerned about where that is going, and
Speaker 7: actually preferences said Latin America, pockets of Asia which has
Speaker 7: still got their exposure to the tech cycle, which we
Speaker 7: think can continue to do well.
Speaker 3: One of the things I look at here is over
Speaker 3: the weekend, a lot of people again desperately wanting to
Speaker 3: trade or market time the big tech, the big stocks.
Speaker 3: I saw a lot of research this weekend. Now's the
Speaker 3: time to get out, Now's the time to lighten up
Speaker 3: in that. What's your study at LLC of market timing
Speaker 3: not so much buy and hold, but just extending your
Speaker 3: belief I own somebody listening right now owns Microsoft. They
Speaker 3: got lucky, somebody gave it to them. Whatever, How do
Speaker 3: you extend your timeline and not market time?
Speaker 7: Well, first, I think I think it's a fool's game
Speaker 7: almost to try and think that you're going to have
Speaker 7: perfect timing in this kind of market. And I think
Speaker 7: what's more difficult about the big tech is that I
Speaker 7: think that the microagnostic, so you almost have to look
Speaker 7: away from the microphone.
Speaker 3: What do you mean by the macroagnostics? Y, I lost
Speaker 3: it in the accent.
Speaker 7: You know, macro agnostic. It doesn't matter what the growth outlokas,
Speaker 7: it doesn't almost matter what the fed outlooka is. Those
Speaker 7: companies are almost creating their own demand now with the
Speaker 7: advent of AI. So actually, what we're doing almost is
Speaker 7: becoming an individual stockpicker and having to understand the dynamics
Speaker 7: of those specific companies, and to us, it's very Difficult's cool,
Speaker 7: but I think that party's going to keep going on
Speaker 7: for it.
Speaker 3: So this goes to Michael Mobison and capital allocation in
Speaker 3: the standard discounted cash flow analysis. Mobison would say, and
Speaker 3: I agree with them. I think you have to put
Speaker 3: more weight on the individual quarter, the individual years, and
Speaker 3: less weight on fancy plug in math plugin chuck math
Speaker 3: and the terminal value. I think there's too much analysis
Speaker 3: on what's Microsoft going to be doing seven years and
Speaker 3: not enough weight or what are they going to be
Speaker 3: doing in the next ninety days.
Speaker 7: And I think that's even more important for technology because
Speaker 7: you're seeing that people are trying to understand on a month,
Speaker 7: my month, call to my quarter basis of where things
Speaker 7: are moving. And the thing is, with tech, it's moving
Speaker 7: so quickly. The progress that you've already seen is advancing
Speaker 7: really quickly. That actually, yes, that shorter timescale becomes more important.
Speaker 5: All right, Let's think about fixed income here, because a
Speaker 5: lot of folks are saying they can go to a
Speaker 5: US Treasury two year get close to five percent.
Speaker 6: Is that enough or do I.
Speaker 5: Try to take some credit risk here and get a
Speaker 5: little bit more creative?
Speaker 7: So I think at this point, with Treasury especially, duration
Speaker 7: is not particularly attractive at these levels. I think, even
Speaker 7: though you're likely to see FED cuts this year, with
Speaker 7: a continuation with it, actually with a shadow cutting cycle
Speaker 7: most likely for twenty twenty five, plus, concerns around term premium,
Speaker 7: the discussions around fiscal deficit that actually yields and not
Speaker 7: going to come much lower from here for credit, though
Speaker 7: there is certainly interesting parts. IG is one error that
Speaker 7: we are sunny. We do have an overweight to but
Speaker 7: we're looking sunny at the quality space.
Speaker 3: You've lit up the live shared on YouTube worldwide. People
Speaker 3: are listening to you and they're saying wait. Seem as
Speaker 3: Sure is saying ignore macro. Let's be careful about this.
Speaker 3: Do you think this bull market of twelve stocks, twenty stocks,
Speaker 3: whatever is removed from FED analysis where it's just about
Speaker 3: their individual stories.
Speaker 7: I do. I don't think the FED has an impact
Speaker 7: on these companies. I don't think if the FED is
Speaker 7: going to cut in Septener vers December, this is a.
Speaker 3: Huge deal, because I'm halfway there. I think it's way overrated.
Speaker 3: At least Brama, when I go on this all the time,
Speaker 3: she's like following the FED thing up down. So I'm like, no,
Speaker 3: it doesn't matter. But you've gone full boat. You've just
Speaker 3: said you don't care what chairman Paula says.
Speaker 7: I think that it matters for the other four hundred
Speaker 7: and ninety three stocks, But I think for those seven
Speaker 7: or haven't. Maybe you want to call it now the
Speaker 7: magnificent ones. The FED is not relevant inter that analysis,
Speaker 7: But for that broadening in the raalley, the FED doesn't matter.
Speaker 5: Yep, Hey Shiman, How do you think about alternative investments,
Speaker 5: private equity, private credit, hedge funds, things like that. Where
Speaker 5: do you think that those belong in that portfolio today?
Speaker 7: I mean they absolutely need some kind of allocation, okay,
Speaker 7: the returns to get the returns that people are looking
Speaker 7: for over the next five to ten year period. If
Speaker 7: you don't have exposure to big tech and then are
Speaker 7: going to keep delivering at the same pace that they've had,
Speaker 7: you need to look outside your traditional errors. So we
Speaker 7: are looking at the alternative space. I mean even within
Speaker 7: the alternatives, a lot of focus on real asets because
Speaker 7: of inflation mitigation, but certainly in the private space, I
Speaker 7: think there has to be allocation in private credit in.
Speaker 3: The time we've got left. You are of Aldrich and
Speaker 3: London school of economics. How do you play the election
Speaker 3: in the United Kingdom? Is it a foot sea opportunity?
Speaker 3: Is it a guilt opportunity? I get all the consensus
Speaker 3: and then forget about the gaming of the election, But
Speaker 3: is there an opportunity there for investors looking for three years?
Speaker 7: So it depends what the I'm assume the Labor is
Speaker 7: going to win, if the Labor Party is really going
Speaker 7: to think about what is going to make the UK
Speaker 7: attractive investor to investors again, whether that's thinking about the
Speaker 7: EU trade relationship, whether it's thinking about capital gainst tax.
Speaker 7: That has the potential to really improve the attractiveness of
Speaker 7: the UK. But we're still waiting to hear it because
Speaker 7: they haven't said much about it in the manifesto.
Speaker 5: Have the pro Brexit people have they admitted that maybe
Speaker 5: that it hasn't worked, it's not the right decision, or
Speaker 5: is it still so partisan?
Speaker 7: It is still quite partisan, but you are seeing more
Speaker 7: and more people becoming fairly quiet about the subject, which
Speaker 7: I think is an admission that it didn't work out
Speaker 7: so well.
Speaker 5: And is that kind of what the data is showing
Speaker 5: you that in fact it has not worked.
Speaker 7: The data is showing that all the promises that were
Speaker 7: made in the event and the event of breaksit have
Speaker 7: not come to fruition and as a result, the economy
Speaker 7: has not benefited.
Speaker 5: You guys can't fix that overnight.
Speaker 3: Can you see her. She could be on ITV or Sky.
Speaker 3: She worked with Treasury, so you know, oh boy, she
Speaker 3: could be a pundit.
Speaker 5: I need to go to the London School of Economics then.
Speaker 3: Oh it's great schools. To great school. Thank you, mister Robbins.
Speaker 3: Darren Door from the rest share of Principal Asset Management
Speaker 3: with Fordam Global Insight. A three hour conversation is in order.
Speaker 3: Tina Fordham joins us this morning. Tina, it's a quiet
Speaker 3: summer in Europe. My word, Tina, let me get to
Speaker 3: the July thirty French election. I guess it's impact on
Speaker 3: all of us. There are two does a pro like
Speaker 3: you just ignore it and move right on to July seventh.
Speaker 8: Oh I wish we could ignore it, but no.
Speaker 1: In fact, the first round is this coming Sunday, and
Speaker 1: the second round is July seventh, so we've got the
Speaker 1: two rounds, the first one in just a few days.
Speaker 1: Macraln gave himself the least time possible really to call
Speaker 1: these snap elections, and it's thrown the whole French political
Speaker 1: spectrum into disarray and woken up those of us who
Speaker 1: haven't spent a lot of time focusing on French politics.
Speaker 1: I mean really since Macron took office in two thousand
Speaker 1: and seven with his Central Party.
Speaker 3: My basic take looking at all of the sun including
Speaker 3: the US debate, and that is that if Macron is defeated,
Speaker 3: it's some form of conservative right wing coalition. Is that
Speaker 3: feasible or the polarity so fractious even that's not going
Speaker 3: to happen.
Speaker 1: Well, first of all, the French political landscape is highly
Speaker 1: charged and highly fractious, and lots of the political party's
Speaker 1: names start with R, so they sound the same for
Speaker 1: outside observers. It's going to be confusing or renaissance, rassmn,
Speaker 1: re conquet, this.
Speaker 8: Sort of thing.
Speaker 1: Macron Party is center right, so you know that's worth restating.
Speaker 1: It's the populist right under Marine la Penn that has
Speaker 1: been working hard over the years to normalize and kind
Speaker 1: of mainstream itself that looks like.
Speaker 8: It stands to benefit.
Speaker 1: But the mathematics on this two round race and the
Speaker 1: five hundred and something mini elections that take place make
Speaker 1: the calculations really difficult. And so first of all, just
Speaker 1: coming up with scenarios, which is what you would normally
Speaker 1: do in this situation, is difficult.
Speaker 3: Paul's looking for dissage tickets down the sen River at
Speaker 3: the Olympics. Paul, what do you have.
Speaker 5: Let's go to the UK here, tell us what we
Speaker 5: should be thinking about here, Tina. With the UK elections.
Speaker 1: Well, the UK elections are on the fourth of July,
Speaker 1: so right between two rounds.
Speaker 8: I have been saying for some time.
Speaker 1: I mean, first of all, the UK elections were due
Speaker 1: this year, they had to be called. They could have
Speaker 1: been called by January at the latest. Still the timing is,
Speaker 1: you know, a bit of a head scratcher. It's not
Speaker 1: usual to try to make people come to the polls
Speaker 1: in the height of summer and mess up everyone's summer vacations.
Speaker 8: Sunak, you know, is widely.
Speaker 1: Rumored here in the UK to be you know, be
Speaker 1: looking to get back to California and join Nick Clegg
Speaker 1: somewhere like Meta in the Silicon Valley. But he insists
Speaker 1: he wants to remain in his Yorkshire constituency as an MP.
Speaker 1: That's something that's unusual about the British system that politicians
Speaker 1: stick around the reason May has stayed on as a
Speaker 1: as an MP. But in this case, the UK is
Speaker 1: bucking the trend for the rest of Europe, which is
Speaker 1: moving far right in fact, and looks likely to vote
Speaker 1: in a late government by a landslide.
Speaker 5: And that's kind of where I wanted to get to.
Speaker 5: How do we, you know, for our audience here in
Speaker 5: the United States, how do we think about you know,
Speaker 5: some of these European countries really moving to the right,
Speaker 5: and you mentioned we were talking about France earlier and
Speaker 5: the UK going more to the left. What does that
Speaker 5: tell us? How do we think about that?
Speaker 1: Well, so the UK is an outlier in the wider
Speaker 1: European trend. With that in mind, but we've had fourteen
Speaker 1: years of a Conservative Party government. Fourteen years that is
Speaker 1: a very long stretch. So first of all, it's an
Speaker 1: anti incumbent move. Secondly, eight years ago yesterday and I
Speaker 1: can't believe it was this long ago, we had the
Speaker 1: Brexit result. And Brexit has been the elephant in the
Speaker 1: room during this campaign because nobody wants to.
Speaker 8: Tell voters they voted for something that.
Speaker 1: You know, went the wrong direction and then they possibly
Speaker 1: misjudged the outcome. But it has undoubtedly made people in
Speaker 1: Britain poorer, and they do understand that it breaks it
Speaker 1: is the main cause of what ails them.
Speaker 8: It just hasn't featured in the campaign, which is odd.
Speaker 3: Tina. One final question, I'll drag you back to the
Speaker 3: United States of America. What will you look for in
Speaker 3: the Thursday debate?
Speaker 1: Well, signs of life.
Speaker 8: Will all be looking for sentience and signs of life.
Speaker 1: One of my clients in private equity in the US
Speaker 1: described the races between demented and dementia. I don't know
Speaker 1: if you know use these kinds of technical terms on
Speaker 1: Bloomberg Radio, but I think a.
Speaker 8: Lot of Americans see it that way.
Speaker 1: And you're going to have the two of them side
Speaker 1: by side. You know, people like me will be getting
Speaker 1: the popcorn out as well as covering it. Arguably, the
Speaker 1: bar is higher for Joe Biden because there has been
Speaker 1: this relentless kind of narrative about him being a daughtering
Speaker 1: you know, old fool, and Trump comes out guns blazing
Speaker 1: with you know what is really also a meandering way
Speaker 1: of expressing himself. But the other side of it will
Speaker 1: be how does this work without a studio audience. Someone
Speaker 1: like Donald Trump really, I think needs the energy of
Speaker 1: the crowd.
Speaker 8: But this was a condition.
Speaker 1: That reportedly President Biden required. So the debates rarely move
Speaker 1: the needle on poles. But it will generate headlines and
Speaker 1: perhaps it will mean a bit more in a race
Speaker 1: like this where so many Americans really don't like either candidate.
Speaker 3: Tina, thank you so much, Tina Fordham. With this Fordham
Speaker 3: Global ands, I should say for Global Insight in London.
Speaker 3: I'm looking for a man in finance.
Speaker 4: Trust fun six five they eyes.
Speaker 7: I'm looking for a man in finance, just fine, six
Speaker 7: five blue eyes, sharpish brain bud, sharp jaw line.
Speaker 3: Okay, that's enough to foolery. Sweety's got the jaw line.
Speaker 3: I don't have the jaw. This thing won't go away.
Speaker 3: That's sad Alex. Sad Alex. Oh yeah, I'm getting it
Speaker 3: at home. I come out of the pool with my float.
Speaker 3: He's out and the brat after thought goes, yeah, you
Speaker 3: look like a man in finance with the newspapers because
Speaker 3: this won't go away this summer. The babe in finance,
Speaker 3: Lisa Mateo.
Speaker 9: There's so many in the minut The Girl on the
Speaker 9: Couch did the song. She struck a deal with Universal
Speaker 9: Music Group. It's on Spotify. I mean, it's going crazy,
Speaker 9: but what it's also done. It sparked this trend because
Speaker 9: in the dating scene, finance bros Are becoming the latest
Speaker 9: hot commodity. Okay, women want the finance bros. There was
Speaker 9: one woman I remember on social media. She held up
Speaker 9: the cardboard sign and she said she was looking for
Speaker 9: the man in finance.
Speaker 3: The article says it's actually a national thing.
Speaker 8: It is.
Speaker 6: It's growing.
Speaker 5: I mean, the thing back in the eighties.
Speaker 6: Let me just see Okay, okay, so maybe it's coming around.
Speaker 3: Deep in the song when sad Alex does this deep
Speaker 3: in the song, there's a beauty. I can't paraphrase it
Speaker 3: even but she says, basically, you're working so many hours
Speaker 3: a week, just give me the keys to the place
Speaker 3: in the Hampton's. Does anybody understand these animals where it's
Speaker 3: sixty five sixty five hours, this is slow week.
Speaker 9: Yeah, that's what one woman who said they actually interviewed
Speaker 9: this in the Wall Street Journal. They said she said
Speaker 9: she dated man of finance. She's like, listen, you're never
Speaker 9: going to see him.
Speaker 6: Put us straight out there, just letting you know.
Speaker 3: The wonderful girl at Penn State nailed where she invented
Speaker 3: this madness. Maybe will go away by August next By.
Speaker 9: The way I put I put a little man in
Speaker 9: finance tribute out to you dude on Twitter.
Speaker 6: Tom, So you gotta take that out.
Speaker 3: That people.
Speaker 9: Okay, here we go. This is gonna spark something with you, Tom.
Speaker 9: The high end pet care business, it's the king, this
Speaker 9: booming market. But here's the thing, it's forcing a lot
Speaker 9: of people into debt. There was one woman she said
Speaker 9: she had this MRI scan for her dog two thousand dollars.
Speaker 9: Now she's paying thirty percent interest. The dog has no regrets.
Speaker 9: But a lot of people maxing out credit cards, they're
Speaker 9: tapping into retirement accounts, taking out loans for some of
Speaker 9: these expenses for their pets.
Speaker 6: I mean, they love them. People are more attached to
Speaker 6: them nowadays.
Speaker 3: I would be careful here because you know, I've been
Speaker 3: chastised people really care about this. Yes, yeah, I'm in
Speaker 3: the camp like the old days were a dog's a dog,
Speaker 3: move on a cat whatever. You know, we love them
Speaker 3: all on that. But you're right, people go mental. I mean,
Speaker 3: you know, Chris Whalen, you know I go to the
Speaker 3: Horus Man that Maary Clinic. I just write a tuition.
Speaker 3: Check out the Horus fan for the doctor. Chris Whaling
Speaker 3: goes to the preferred dividend that Mary Clinic gets. It's
Speaker 3: in midtown somewhere where the only way you pay is
Speaker 3: a JP. Morgan prefer dividend shares. I mean, the bills
Speaker 3: get that high, that's how they do it.
Speaker 5: But these guys, are you pet people?
Speaker 1: I'm not.
Speaker 6: I'm not a pet person. I don't.
Speaker 8: I don't.
Speaker 6: I had one growing up.
Speaker 3: But I just got that bill's teeth done. Are you ready?
Speaker 4: Wait?
Speaker 3: What the thing now is to avoid major issues when
Speaker 3: they're eight or older? Okay? Is you get like we
Speaker 3: get our teeth cleaned, except you get your teeth cleaned
Speaker 3: and it's like, you know, a rounding error thirteen hundred
Speaker 3: for one in Kennel Fee, who's like got the IQ
Speaker 3: of a Kardashian. Kennel Fee wants Whiting as well to
Speaker 3: writer and it's out of control. It connects.
Speaker 6: Okay, I want to talk about Netflix. This was really good.
Speaker 9: You mentioned Lucas Shaw writing from Paris for his latest newsletter. Okay,
Speaker 9: he was talking about Netflix, one of the biggest players,
Speaker 9: but when it comes to advertising, he says not so much.
Speaker 9: He says the setup for success was there Netflix. They
Speaker 9: built this advertising business with the help from Microsoft they
Speaker 9: added that advertising supported.
Speaker 6: Tier for subscribers. But in the US they're advertising tier.
Speaker 6: It's just a fraction of the size of.
Speaker 9: Peacock, Hulu, Disney, Amazon Prime. They didn't deliver as many impressions.
Speaker 9: The relationship with Microsoft is now strained, and it lets
Speaker 9: go of its head of advertising.
Speaker 3: Amazon.
Speaker 5: No, no, they're not, and it's okay. They don't have
Speaker 5: to be. But they will get it because advertisers will
Speaker 5: come to them, even if they don't even ask. Advertisers
Speaker 5: will come to them because that's where the eyeballs are.
Speaker 5: So they'll get there act together. I'm not too sure
Speaker 5: they will be a.
Speaker 3: Lucas Lucas alluded to that well, but well, I think
Speaker 3: my amateur take is Amazon sort of on a rule
Speaker 3: right now.
Speaker 5: Amazon's is awesome. I mean they I mean, you know,
Speaker 5: the big concern was there's only a duopoly here, you know,
Speaker 5: kind of Google and Facebook. Now you have a viable
Speaker 5: third digital advertising alternative, and that's Amazon.
Speaker 3: There's a guy out on YouTube blood chat. He sends
Speaker 3: his dog, it's one of those yep yep dogs, ways
Speaker 3: like eight pounds to the Marie Antoinette veterinary clik.
Speaker 8: There you go.
Speaker 3: You can yeah, I can't imagine what the shampoo of
Speaker 3: the milk.
Speaker 6: Cut got next, and then laugh one.
Speaker 9: It is just a little look this from Fortune magazine
Speaker 9: into remember how Walmart came out with this new managerial
Speaker 9: pay boost. You know, they wanted to boost morale and
Speaker 9: help reduce turnover, so they raise their manager's salary. So
Speaker 9: there's one manager he was straight out and he talked
Speaker 9: about his salary. He's forty five his base salary of
Speaker 9: one hundred and sixty eight thousand. He's a Walmart store
Speaker 9: manager after that increase, but he said with bonuses at
Speaker 9: stock grants, Walmart says he can make up a five
Speaker 9: hundred and twenty four thousand dollars a year as a
Speaker 9: store manager. This is a guy who's a Kurdish immigrant.
Speaker 9: He turns the retailer nineteen ninety nine. Started as a
Speaker 9: part time worker making eight dollars an hour, and he
Speaker 9: just kept moving up the ranks, no college degree, just
Speaker 9: kept moving up, moving up.
Speaker 1: Moving up.
Speaker 5: I mean some of these Walmart stores they employed hundreds
Speaker 5: of people, and I mean it's a it's a company
Speaker 5: in and of itself, these individual stores. It's a it's
Speaker 5: a meaningful small business.
Speaker 3: And like we look at ups and one hundred and
Speaker 3: seventy thousand or this wonderful story. What enthuses me is
Speaker 3: in that store, there's probably twenty other people on the
Speaker 3: same track, and they're not getting the headline five hundred
Speaker 3: thousand income. But you got people starting, like you say it,
Speaker 3: eight bucks an hour, twelve bucks an hour.
Speaker 8: They stick with it.
Speaker 3: They're popping one fifty one seventy two hundred. That's really cool,
Speaker 3: it is? That was strong. Let's do finance, bro every day?
Speaker 6: This yeah, exactly.
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