Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: The single best idea and just today it was a
Speaker 2: great day equity bond equity. Lisa Shallett was on fire
Speaker 2: with a hugely aggressive note from Morgan Stanley that like,
Speaker 2: you know what, things are pretty good, get on board.
Speaker 2: I headlined out this morning in Vidia committing to invest
Speaker 2: up to ten billion and anthropic. I don't know what
Speaker 2: to do with all this, but we're really listening to
Speaker 2: some of these year end summaries as they go to
Speaker 2: their outlooks, people like Lisa Shallatt at Morgan Stanley, Stuart
Speaker 2: Kaiser on fire this morning with City Group much more
Speaker 2: in the trenches, the dynamics of the market.
Speaker 3: Stuart Kaiser on the moment at hand.
Speaker 4: Yeah, I think for Nvidia, you're paying for the forward grounds.
Speaker 4: I'll look for Walmart, you're almost paying for execution. Like
Speaker 4: these guys, you should have been masters at executing their
Speaker 4: supply chain, their inventory management. You now have, you know what,
Speaker 4: We're previously middle income spenders kind of trading down into
Speaker 4: Walmart stores. So that's why Walmart's so important this week,
Speaker 4: because they are so good at execution. They are such
Speaker 4: a good lens into the broad based us consumer that
Speaker 4: if they echo what we've heard from from home Depot,
Speaker 4: from Costco, from Chipotle, from a Riley automobile home, you know,
Speaker 4: if they echo that, I don't think the market's going
Speaker 4: to take it well. Of all the new information we've
Speaker 4: gotten in the last month, to me, the weaker consumer
Speaker 4: earnings is probably the most, the newest and the most
Speaker 4: concerning of all that information.
Speaker 3: Steric Kaiser, let me explain this. And the Bloomberg dees screen,
Speaker 3: the description screen world famous. I mean to me, the
Speaker 3: YA screen, the yield analysis screen was what made Bloomberg Bloomberg.
Speaker 3: But the DS screens an important effort as well. Many
Speaker 3: screens of the description of a given company. We report
Speaker 3: two price earnings ratios, the present one looking back twelve months,
Speaker 3: and then we do a calculation of the expected PE
Speaker 3: looking at different algorithms in that and Nvidia is growing
Speaker 3: like crazy, so their present PE is fifty ish and
Speaker 3: their expected PE is forty ish. Walmart is ginormous. We
Speaker 3: know that it's present PE is forty ish and its
Speaker 3: future PE is forty ish. So there's a big, big
Speaker 3: distinction wrapped around those hyperscalers, those tech moment and their
Speaker 3: growth is well over in bonds. I've never seen this, folks,
Speaker 3: I'm saying this in umpteen decades, I have never seen
Speaker 3: a more optimistic note on fixed income than what I
Speaker 3: saw from Tony Cressenzi today at Pimco. Tony Cressenzi, I'm
Speaker 3: being brave in fixed income.
Speaker 1: Five to seven percent is quite attractive for double A
Speaker 1: minus double minds according to Standard and Poison Moodies indicatese
Speaker 1: you have a ninety nine point nine eight percent chance
Speaker 1: of getting your money back. Now if you're if you
Speaker 1: believe that those yields are unattractive, you're thinking, then that's
Speaker 1: because the Federal Reserve will fail. It will fail and
Speaker 1: its efforts on price stability. It may continue to fail
Speaker 1: in its efforts to achieve its two percent price target. Sure,
Speaker 1: but that doesn't matter historically. What matters historically you can
Speaker 1: go back to the green span, vulgar days, former Fed chairs.
Speaker 1: Price stabilities are matter somewhere in the mid twos is
Speaker 1: what defines it. We have all kinds of data to
Speaker 1: show that markets are happy when prices are simply a
Speaker 1: rent stable in a normal in a relatively low zone
Speaker 1: called two point three four five six.
Speaker 3: Tony Cscenzi of PIMCO.
Speaker 2: We're in podcasts, We're on Apple, we're on Spotify, on
Speaker 2: YouTube podcasts.
Speaker 3: It's single best idea