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Speaker 2: Take a look at the S and P five hundred
Speaker 2: right now at the sector level, your biggest gainer is
Speaker 2: those financials. That sector up about two percent as a whole.
Speaker 2: A lot of those gains, a lot of that strength
Speaker 2: is coming just from JP Morgan, which is currently up
Speaker 2: about five point one percent after taking the earning stage
Speaker 2: this morning. Let's break it all down now with Bloomberg
Speaker 2: Intelligence Senior Global Banks analyst Alison Williams joining us in
Speaker 2: the studio. Allison, it's already been a long day for you,
Speaker 2: but talk us through, of course, the reaction that we're seeing,
Speaker 2: because it seems like JP Morgan managed to prize really
Speaker 2: across the board.
Speaker 3: It did, and I mean, I think that the reaction
Speaker 3: is a little it's surprising to the upside in terms
Speaker 3: of how strong.
Speaker 4: The stocks are reacting.
Speaker 3: I definitely think that we got good news from JP Morgan.
Speaker 3: I think, you know, on the margin, good news from
Speaker 3: Wells Fargo, But in general, I think the stocks are
Speaker 3: also reacting to the potential soft landing.
Speaker 4: For the banks.
Speaker 3: So we know that interest rates are coming down, and
Speaker 3: that's the best case scenario for the banks. Are interest
Speaker 3: rates come down, it helps to spur loan growth. That
Speaker 3: helps that interest income. Credit continues to be solid what
Speaker 3: we saw in the quarter. First of all, credit does
Speaker 3: continue to be solid. JP Morgan did take a billion
Speaker 3: dollar reserve, but we think that's on the conservative side
Speaker 3: of things.
Speaker 5: You know, well, you think they're being too conservative. They
Speaker 5: should have taken a bigger reserve.
Speaker 3: I would know, I would I would say that the
Speaker 3: billion is conservative. I think you know, the fact is
Speaker 3: that they're charge offs like the current day losses came
Speaker 3: in lower than.
Speaker 4: Expected, so that's a positive, right yeah.
Speaker 5: So I mean basically, you're saying the consumer is in
Speaker 5: pretty good shape and they were smart about their loans.
Speaker 3: Right, correct, correct, And in general, what did most of
Speaker 3: the provision. Thing we've seen is the fact that card
Speaker 3: loans are growing, So it's just about the growth. So
Speaker 3: you know, things are normalizing, as we say, which basically
Speaker 3: means they're going up to where they should be over time.
Speaker 3: But things are healthy interest income. I think that's, you know,
Speaker 3: the big the big news of the day. In fact,
Speaker 3: you saw jpen Morgan stock bouncing around a little bit
Speaker 3: because they sort of went back to the beaten raised.
Speaker 3: We saw that for several quarters in the row they've
Speaker 3: beaten an interest income, they raised guidance. We didn't really
Speaker 3: see that the last couple of quarters.
Speaker 6: Did they set it? Set us up for this? I
Speaker 6: feel like we got set up.
Speaker 5: I feel like we've been doing to be honest, I
Speaker 5: look back at the HCPI function, right. So I'm looking
Speaker 5: at JP Morgan stock. One month and one day ago,
Speaker 5: on September tenth, Daniel pinto the all important JP Morgan
Speaker 5: president came out and said, hey, you guys on the street,
Speaker 5: your estimate for net interest income is way too strong.
Speaker 5: We're not going to make that. And he pushed the
Speaker 5: stock down on that day five point two percent. Now
Speaker 5: they come out and beat on net interest income and
Speaker 5: raised their forecast for this year, and the stock is
Speaker 5: up five point two percent.
Speaker 4: Yeah and so and the two things he said, by
Speaker 4: the way, because he.
Speaker 3: Said net interest income is going to be lower expenses
Speaker 3: are going to be higher, and so today we were
Speaker 3: looking for evidence right of you know, estimates have came
Speaker 3: down for net interest income, so have they come down enough?
Speaker 3: And so they came out, they beat the current number.
Speaker 3: They raised guys for the fourth quarter, and then Jamie
Speaker 3: came out and said, you know, next year it still
Speaker 3: looks a little bit too high. And so my guess
Speaker 3: would be, you know, Bi, we don't do estimates, but
Speaker 3: my guess is going to be estimates go up for
Speaker 3: fourth quarter and people wait to adjust their twenty five
Speaker 3: to see what happens over the next few months, because
Speaker 3: as Jamie also said, things can change, right, and we
Speaker 3: are going to want to see what happens in terms
Speaker 3: of the long growth and the deposits and all of that.
Speaker 3: But you know, to your point, they talked things down,
Speaker 3: they came out and did better. They also similarly on
Speaker 3: the trading front, right, So trading trading and a best
Speaker 3: of banking fees be pretty much across the board except
Speaker 3: for the equity fees maybe a little bit more optimistic.
Speaker 3: And we think that really sets up well for you know,
Speaker 3: Goldman and Morgan Stanley, which we're gonna hear from next week.
Speaker 2: Right, Well, let's talk a little bit more about Jamie Diamond,
Speaker 2: because of course you have the numbers, and then you
Speaker 2: have the call, and then you have of course, what
Speaker 2: Jamie Diamond says. He sounded kind of doom and gloom
Speaker 2: a little bit relatively speaking on the economy. He also
Speaker 2: had some interesting things to say about cash, and I
Speaker 2: believe we have a clip of that.
Speaker 7: I've been quite clear. I think things are the future
Speaker 7: would be quite turbulent. Cash is a bill guy asset
Speaker 7: sometimes in a turbulent world. And you see my friend
Speaker 7: warm buffet, there was dog pine cash right now. I
Speaker 7: mean people shouldeel a little more thoughtful about how we're
Speaker 7: try to navigate in this world and grow for the
Speaker 7: long term for our company. I'd prefer to wait. We
Speaker 7: will be able to deploy it our share and be
Speaker 7: very well served by his waiting.
Speaker 4: I don't remember.
Speaker 2: And so that was Jamie Dimond just talking about how
Speaker 2: he views cash as a valuable asset class still And
Speaker 2: I mean you're seeing that in money market funds. Matt
Speaker 2: and I talk about this all the time, the six
Speaker 2: points something trillion in money market funds. Yeah, yeah, And
Speaker 2: it's interesting that I don't know I feel for like
Speaker 2: for some of the regionals.
Speaker 8: That's painful, the fact that you have.
Speaker 2: Seen people maybe shift their deposits from banks into money
Speaker 2: market funds. But I guess that's not a JP Morgan problem.
Speaker 3: So I think that you know that that obviously a
Speaker 3: bad has both deposit offerings and money markets.
Speaker 4: That's a positive.
Speaker 3: But I think in general his point is where there
Speaker 3: are are, you know, a lot of potential risks, it's
Speaker 3: always good to have cash. Keep in mind that, you know,
Speaker 3: one of the best things Jamie's done throughout his career,
Speaker 3: right is be ready for the moment. So if you
Speaker 3: look back at the financial crisis, going into that, investors
Speaker 3: kept asking him, oh, why aren't you returning capital?
Speaker 4: Why do you have so much capital?
Speaker 3: And that's where the term fortress balance sheet, I think
Speaker 3: where it came from. And because he had that balance
Speaker 3: sheet when a lot of other companies were weak, right,
Speaker 3: he was able to pick up the deposit franchise of
Speaker 3: Washington Mutual. He was able to pick up the prime
Speaker 3: brokerage business of bear Stearns. He's only gone on to
Speaker 3: build those even stronger again. In them pandemic picked up
Speaker 3: some assets even last fall, was able to do some things.
Speaker 3: And this quarter again like that capital ratio, that was
Speaker 3: another I think really positive surprise for bank investors. They
Speaker 3: did a lot of buybacks and that's why again, like
Speaker 3: I think sometimes a lot of his comments get headlines,
Speaker 3: but it's really the underlying philosophy that he's talking about
Speaker 3: in terms of there are a lot of structural risks
Speaker 3: out there. She only had a great I'm sorry, Lisa
Speaker 3: had a great interview recently where Jamie said, you know,
Speaker 3: talked about the structural risk but also said thought that
Speaker 3: FED did the right thing. So I think near term
Speaker 3: things look very strong, but he's just pointing out there's
Speaker 3: a lot of structural things out there. He focuses a
Speaker 3: lot on the geopolitical risks, and cash is something very
Speaker 3: valuable to have when you see that sort of risk planning.
Speaker 6: He's just heroic, Jamie Dimon.
Speaker 5: I mean, he's like otherworldly. He mentioned in that SoundBite
Speaker 5: that you played Warren Buffett. I feel like Jamie Diamond
Speaker 5: is probably Wall Street's, you know, favorite sort of giant since.
Speaker 6: Buffet, you know, and he's just always hitting home runs.
Speaker 8: Yeah, but I don't know.
Speaker 2: I was I was listening to an interview that Charlie
Speaker 2: Munger did randomly a couple of years ago, and he
Speaker 2: was talking about like the sleazy products that the banks sell.
Speaker 8: He didn't call it.
Speaker 2: JP Morgan specifically, but I don't know. And Charlie Munger
Speaker 2: is an Orton Buffett, but you think of them in
Speaker 2: the same breath.
Speaker 8: This is a tangent. I do want to talk about
Speaker 8: will Spargo a little bit while we have.
Speaker 2: You, Allison, because of course net interest income that was
Speaker 2: the big headline for JP Morgan was also the big
Speaker 2: headline for Wells Fargo maybe in the other direction, even
Speaker 2: though Wells Fargo I think is having a pretty good
Speaker 2: day but.
Speaker 6: More than six percent.
Speaker 2: Yeah, but we'll talk to us about that reaction. Because
Speaker 2: they did miss on net interest income.
Speaker 3: So they did miss but I think once you sort
Speaker 3: of they missed, and they actually their guidance moved to
Speaker 3: down nine percent for net interest income this year previously
Speaker 3: is down eight to nine percent. So I think initially
Speaker 3: when you saw those headline numbers, as I did, thought like, oh,
Speaker 3: this is negative.
Speaker 4: But digging into.
Speaker 3: It a little bit, a lot of the downward guidance
Speaker 3: is really based on the myths that we saw in
Speaker 3: third quarter, and one of the things that they did
Speaker 3: was to restructure their investment securities portfolio. So really the
Speaker 3: fourth quarter estimate looks about stable. So the downward guidance
Speaker 3: really kind of reflected some of the pain in the quarter,
Speaker 3: if you will, and the investment banking business and a
Speaker 3: lot of the fees that they're seeing more than offset that.
Speaker 3: So more was they were able to absorb the loss
Speaker 3: the hit from restructuring their portfolio, able to absorb the
Speaker 3: weaker than inspected a net interest income and still deliver
Speaker 3: on the top line.
Speaker 5: What's your favorite bank of all? I'm just putting together
Speaker 5: a comp chart. I'm looking at which I always do,
Speaker 5: JP Morgan versus Wells Fargo, Bank America, Morgan Stanley, Goldman
Speaker 5: Sachs City. I feel like that pretty much covers it, right,
Speaker 5: Morgan Stanley over the last five years, killing everybody else.
Speaker 3: So keep in mind, we don't recommend stocks and bi
Speaker 3: but I can't talk.
Speaker 4: I can't talk.
Speaker 3: I can't talk fundamentally, you know, I mean, for me,
Speaker 3: they each have their own great qualities obviously, you know,
Speaker 3: JP Morgan, best in class, best returns, executing a virtuous
Speaker 3: cycle of technology spending that has helped the bank you know,
Speaker 3: ten twenty years.
Speaker 4: So continue to execute really well.
Speaker 3: Goldman Sachs best in class and that institutional business, and
Speaker 3: I really like the changes that they've made in the
Speaker 3: last couple of years. A lot of the diversification strategies,
Speaker 3: if you will, did not play to their core competitive strengths.
Speaker 3: I understand why they made those changes, but I think
Speaker 3: it's it's sort of a vote of confidence in the
Speaker 3: institutional business that they're kind of getting back to where
Speaker 3: they were. Morgan Stanley, to me, still has a little
Speaker 3: bit to prove, right They Gorman did an excellent job
Speaker 3: in terms of making acquisitions and shifting the business mix.
Speaker 3: But now Pick is going to have to deliver on
Speaker 3: a lot of the promises that Gorman made sort of
Speaker 3: on his way out the door.
Speaker 6: That's pretty much tripled.
Speaker 4: But but yes, but but they've changed.
Speaker 3: But the move from the institutional business to the fee side, right,
Speaker 3: so I think that was the better move than perhaps
Speaker 3: some of the diversification strategies that that Goldman did. So
Speaker 3: Goldman backtracking, but Morgan Stanley going to press their bet
Speaker 3: in terms of having that more recurring revenue, et cetera.
Speaker 4: So definitely done a good job there.
Speaker 3: Bank of America, US Bell Weather and then City Group
Speaker 3: just really a unique animal. I think that disappointing for
Speaker 3: a long time in terms of trying to get operating leverage.
Speaker 3: That's a holy grail for them, and I think Jane
Speaker 3: Frazier finally making some good decisions.
Speaker 1: So you're listening to the Bloomberg Business Week podcast, catch
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Speaker 6: As a consolation.
Speaker 5: The producer said, we could talk about cars all I want,
Speaker 5: And I think it's kind of helpful that one of
Speaker 5: the biggest.
Speaker 6: Movers on the day is Tesla.
Speaker 5: Yes, in terms of percentage losers, it is the biggest one.
Speaker 6: On the S and P percentage gainers. The biggest one.
Speaker 5: Is Uber's correct and those stories are related. You may
Speaker 5: not understand exactly how at first, but we're gonna bring
Speaker 5: Kevin Tyne and to talk about he's the director of
Speaker 5: research at Presidio Group, joining us from Princeton, New Jersey.
Speaker 5: How very ivy league of you, Kevin, but not in
Speaker 5: your garage. I'm usually I'm used to seeing you surrounded
Speaker 5: by like a wall of guitars and a V twelve.
Speaker 8: There's nothing on that wall.
Speaker 9: Well, actually, I just finished. I was just out there.
Speaker 9: We finished a an engine swap and an older mL
Speaker 9: fifty five AMG truck. So I got a lot of
Speaker 9: scraped up forearms and knuckles and whatever. But it's running.
Speaker 9: So I'm a fan of the So the place is
Speaker 9: as basically, that's why I'm in here.
Speaker 5: That's a Mercedes Benz SUV that always reminded me of
Speaker 5: a hiking boot. It's like the same shape as a
Speaker 5: hiking boot.
Speaker 8: I'm gonna google this after the segment.
Speaker 5: Let's talk about Tesla. Though they unveiled Elon Musk. Yesterday,
Speaker 5: the richest man in the world unveiled his cyber taxi
Speaker 5: or cyber cab. I guess it's a driverless car. There's
Speaker 5: no steering wheel, there are no pedals. I thought the
Speaker 5: form factor was pretty cool. I mean, it's a fastback
Speaker 5: kind of looks like a Mustang mock e. But investors
Speaker 5: were super disappointed by a total lack of detail, like
Speaker 5: when are they going to come out? How much are
Speaker 5: they really gonna cost? Are the regulators going to allow
Speaker 5: them to be sold in large numbers. What do you
Speaker 5: think about this cyber cab launch?
Speaker 9: I mean, and that's typically the standard operating procedure is
Speaker 9: somewhere down the road there's it's basically to put ideas
Speaker 9: out there that this is not an automaker, right because
Speaker 9: that business is worth zero or less depending you know
Speaker 9: what you're building and how much of it.
Speaker 1: You know.
Speaker 9: The interesting thing to me about cyber cab or whatever
Speaker 9: or was granted there's no driver, but it was only
Speaker 9: two seats? Am I wrong on that?
Speaker 6: Or that's so weird? It seems like makes no sense.
Speaker 9: Like it would seem like you would right, like you
Speaker 9: go out as couples or you know, you and a
Speaker 9: couple of buddies, like it seemed like two seats even
Speaker 9: though you know, I thought it should have held more
Speaker 9: people to that, but whatever, But no, that's ultimately the
Speaker 9: plan is that this is this is a company that
Speaker 9: is a story stock, obviously, and the narrative is every
Speaker 9: way that it is not an automaker, and it's about
Speaker 9: technology and all the non disprovables down the road that
Speaker 9: get at the valuation similar to other or even higher
Speaker 9: than other tech companies.
Speaker 2: And I mean he also revealed this robovan concept that
Speaker 2: could transport as many as twenty people. I think we
Speaker 2: were showing images of the van, but I agree on
Speaker 2: the two seats thing. But of course you think about
Speaker 2: why this is going over so poorly in the stock market,
Speaker 2: it's because the timelines here are so squishy. I mean,
Speaker 2: you think back to twenty ninth and Elon Musk said
Speaker 2: that he was going to have a million robo taxis
Speaker 2: on the road the following year, and that obviously.
Speaker 8: Did not happen. We are in twenty twenty four, but
Speaker 8: I mean.
Speaker 2: Kevin, you point out in your notes that this is
Speaker 2: sort of, you know, par for the course, for Tesla
Speaker 2: and for Elon Musk specifically.
Speaker 9: Yeah, I mean lucky. There's every excuse of he doesn't
Speaker 9: make it, but he eventually gets there or whatever. And
Speaker 9: I think the issue with the stock today versus competitors
Speaker 9: is that one it proved that he isn't far and
Speaker 9: away ahead of anybody if at all, or how far behind,
Speaker 9: because those competitors have come out very recently and said like, hey,
Speaker 9: besides the science and the regulatory environment, this still has
Speaker 9: to make money someday, and we're very far away from that.
Speaker 9: And I think when you look at the event last night,
Speaker 9: he didn't answer any of those questions. If those are
Speaker 9: the three big things, like, hey, is it possible by when?
Speaker 9: And when does it make money? We didn't, the investors did,
Speaker 9: really didn't get any of those answers. So so you
Speaker 9: sell off one and you buy the others that at least,
Speaker 9: if nothing else, might not be any closer. But they're
Speaker 9: being more realistic about the goals.
Speaker 5: By the way, there already are driverlests like robo taxis
Speaker 5: in San Francisco and probably other super progressive cities. Why
Speaker 5: is this such a big deal? Why is it so
Speaker 5: hard to achieve it? Waimo already does it?
Speaker 9: Yeah, well, you know, I thought what was interesting going
Speaker 9: back away. You know, they talked about, you know, because
Speaker 9: you'll hear it all the time, especially from the bulls,
Speaker 9: about how much data they get from full self driving
Speaker 9: already being on the road. But the question is how
Speaker 9: much of it is actually usable? How much is actually
Speaker 9: teaching anything? Right, if nothing's happening, what are you learning
Speaker 9: from that data? So you can collect all the all
Speaker 9: the miles, but until you have a disengagement or an event,
Speaker 9: it doesn't really learn anything. So, you know, I think
Speaker 9: it's a little bit of that is that people get
Speaker 9: distracted by how much data they collect. But my question
Speaker 9: is like, how much of it is really usable? And
Speaker 9: how do you prepare or plan for all the things
Speaker 9: that don't happen all the time, you know, or are
Speaker 9: very rare. So you know, I don't know that, you know.
Speaker 9: The question of the science of it to me is
Speaker 9: you know, and the safety of it is paramount. And
Speaker 9: that's before you get into all the other issues, right,
Speaker 9: the regulatory issues and the profitability issues. So you know,
Speaker 9: I think investors are looking at it like the Ubers
Speaker 9: and lifts of the world are, and even Weymos of
Speaker 9: the world that are being a little bit more conservative
Speaker 9: on timelines on safety, on profitability are being rewarded, I
Speaker 9: guess for lack of a better word, in this market.
Speaker 2: Yeah, Uber in particular screaming higher on this Friday afternoon.
Speaker 8: But Kevin, you made the point that when it comes.
Speaker 2: To Tesla, it's a story stock and the story for
Speaker 2: Tesla has become a little bit murky when you think
Speaker 2: about I mean, what story do you think that investors
Speaker 2: would want to latch onto here?
Speaker 9: Yeah, I think it's that that it deserves because it
Speaker 9: has even beyond technology multiples. So this can't be an
Speaker 9: automaker because then you would be getting four or five,
Speaker 9: six times and it's getting ten times that, So this
Speaker 9: can't be an automaker. So all the issues with supply
Speaker 9: versus demand, over capacity, price weakness, margins, compressing, all that
Speaker 9: is discounted and pushed aside, and then you look at
Speaker 9: it and you say, okay, but what's coming And this
Speaker 9: is an X I don't know, hundreds of billions trillion
Speaker 9: dollar market and they're ahead. And that's the narrative. So
Speaker 9: you know, to an extent, it almost feels like the
Speaker 9: product of this company because a lot of things that
Speaker 9: they show and talk about don't actually exist or aren't marketable,
Speaker 9: or aren't revenue generating. The product is the stock at
Speaker 9: this point, when you're in between these cycles of growth
Speaker 9: in the auto industry or in the auto division, which
Speaker 9: isn't really happening, and you don't have these other products
Speaker 9: that you've promised on your timeline, yet.
Speaker 5: I'm still worth this a shocking amount, even though it's
Speaker 5: down by half since it's high in twenty twenty one,
Speaker 5: it's a seven hundred billion dollar stock. I mean Ford,
Speaker 5: the Ford Motor Company is a forty billion dollar stock
Speaker 5: General Motors, which has been doing better than any of
Speaker 5: the other carmakers this year. It's only a fifty four
Speaker 5: billion dollar stock, So I mean, it's pretty insane that
Speaker 5: Tesla's worth fourteen x General Motors.
Speaker 9: Well, look at even a Toyota of the world, right,
Speaker 9: if they're a better manufacturer or automaker than that company
Speaker 9: top to bottom, you know, and the and the evaluation
Speaker 9: dwarfs it, which just tells you that the market isn't
Speaker 9: thinking of this company as an automaker, because if they were,
Speaker 9: they would be an also ran or even a not
Speaker 9: very good company.
Speaker 5: Toyota's with two hundred and seventy five billion dollars, so
Speaker 5: not even half and barely a third. Let me ask
Speaker 5: about Uber. Why is When I got here in the morning,
Speaker 5: I didn't quite grasp until I started reading through notes.
Speaker 5: Why Tesla's failure is Uber's success in this space?
Speaker 6: What do you think?
Speaker 9: I think It's just it's the removal of uncertainty, Right,
Speaker 9: there was all this build up to the Tesla event,
Speaker 9: and then there's the belief and probably isn't a zero
Speaker 9: sum game, but at least that's the way it's played
Speaker 9: out today is that oh, okay, Tesla doesn't have it
Speaker 9: figured out yet and we don't know when they will,
Speaker 9: so everybody is sort of still in play. So you know,
Speaker 9: when you look at the valuations, Tesla's priced for perfection
Speaker 9: in all of these ancillary businesses, and last night kind
Speaker 9: of proved that they're not really worthy of that yet,
Speaker 9: at least not at this moment. And then it it
Speaker 9: provided a little bit removed some uncertainty about the things
Speaker 9: that Uber and Lyft had said recently.
Speaker 5: I mean, we have a big take story, which we're
Speaker 5: going to talk about in just a few minutes, about
Speaker 5: how Uber is saving hundreds of millions of dollars by
Speaker 5: essentially screwing drivers right, stopping them out of its technology
Speaker 5: stack so that they can't get customers or can't work.
Speaker 5: I guess the idea is, if Tesla were successful, it
Speaker 5: would take the driver out of the equation. You wouldn't
Speaker 5: need an Uber, but then somebody would have to operate
Speaker 5: the road taxi fleet, right.
Speaker 9: Yeah, you would still need fleet management. And you know,
Speaker 9: and again how far away is that? I know, you know,
Speaker 9: in my own mind, like how ready am I to
Speaker 9: walk out of an airport terminal and get in something
Speaker 9: without pedals and a steering wheel to go forty five
Speaker 9: minutes into the city, you know. And that's that's after
Speaker 9: the that I'm convinced that it's safe, that the regulatoryronment
Speaker 9: is favorable, that the companies can stay in business because
Speaker 9: the technology is profitable. So again, I think that timeline
Speaker 9: is way longer than is priced in for some of
Speaker 9: the stocks right now, because I don't think it's around
Speaker 9: the corner, all right.
Speaker 2: Kevin, really great to speak with you, of course, all
Speaker 2: things cars and what's going on in the world of cars.
Speaker 2: That is Kevin Tynan. He is director of Research over
Speaker 2: at the Presidio Group, joining us from Princeton, New Jersey.
Speaker 6: Miss you, bro.
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Speaker 2: We have a real tree. Now we're going to speak
Speaker 2: to Brett Keller. He is the CEO over at Priceline.
Speaker 4: Matt.
Speaker 8: We already spoke to Brett today at ten thirty am.
Speaker 8: That was so good.
Speaker 2: We said, please let us anchor radio. We want to
Speaker 2: talk to Brett again, so we're going to do that
Speaker 2: right now. Brett, great to speak with you again. We
Speaker 2: really appreciate you being so generous with your time. Talk
Speaker 2: to us about the launch of Penny Voice. Of course,
Speaker 2: Penny it's this Ai chatbot is my understanding that launched
Speaker 2: in June twenty twenty three.
Speaker 8: It helps you book travel.
Speaker 2: Penny Voice is the next evolution of Penny. Explain to
Speaker 2: our listeners exactly what Penny Voice is designed to do.
Speaker 10: Sure well, Penny is integrated across all of our user
Speaker 10: experiences and a consumer can come in and as they're
Speaker 10: either planning a trip, booking a trip, or looking to
Speaker 10: service their trip, they can engage with and activate our
Speaker 10: jen Ai chatbot, and over the last year, our consumers
Speaker 10: have been chatting back and forth with her to address
Speaker 10: a number of different needs. Just within the last week,
Speaker 10: we announced a new partnership with open Ai. We're one
Speaker 10: of the first brands in the world to connect to
Speaker 10: their new real time voice API, which enables conversations in
Speaker 10: real time, as opposed to talking to a bot, which
Speaker 10: then translates into text and back and forth, which really
Speaker 10: slows down the experience. This enables a consumer to have
Speaker 10: a real conversation. You can interrupt Penny mid flow, you
Speaker 10: can ask her more challenging questions, and she's able to
Speaker 10: help you do a number of things. So trip planning,
Speaker 10: for example, you need ideas about a trip you want
Speaker 10: to take to a location you've never been. You're going
Speaker 10: to Japan. You want to learn some of the things
Speaker 10: that you want to do in a specific city, or
Speaker 10: even what cities to visit. She can help you with that.
Speaker 10: When it comes to booking a hotel, she can answer
Speaker 10: questions about the specific type of hotel you're looking at
Speaker 10: or one that you're interested in. And once you've booked
Speaker 10: your trip, she can even help you service it. For example,
Speaker 10: if you want to cancel it or make a reservation change,
Speaker 10: she can walk you through that flow. And if she
Speaker 10: can't help you, she can quickly hand you off to
Speaker 10: a live agent who can deal with the more complex scenarios.
Speaker 5: So one of the issues with AI is data gathering.
Speaker 5: Where do you get your data? Is it all just
Speaker 5: from the Priceline website all from the resorts and car
Speaker 5: rental and airline companies with which you work.
Speaker 10: Yeah, so it comes from two areas. Primarily. The first
Speaker 10: is our inherent data pool that we have here at Priceline.
Speaker 10: That's all of the information that we have about all
Speaker 10: of the products and services that we sell. That's, for example,
Speaker 10: descriptions about the hotels, all of their amenities, their price points,
Speaker 10: their availability, et cetera. But Penny also has access to
Speaker 10: outside information. So the same type of information you might
Speaker 10: find an open AI, we're just able to stitch that
Speaker 10: all together to make it much more relevant to the
Speaker 10: trip that you're planning and considering. And so we tie
Speaker 10: those things together to give you the best view from
Speaker 10: a traveler's perspective.
Speaker 5: Ah, So she could say, like, this hotel is better
Speaker 5: than that, or I guess Katie, if you have Katie wants.
Speaker 6: To go to a hotel for Jissage. Yes, I don't
Speaker 6: know if they have.
Speaker 5: Those hotels, but you know, she can tell you the
Speaker 5: best Grissage hotel.
Speaker 8: That would be really fantastic. So I am curious.
Speaker 2: I mean, how comfortable is your user base with AI
Speaker 2: with using an AI tool? Because Penny the original Penny
Speaker 2: has been around since June's twenty twenty three. I asked
Speaker 2: you this at ten thirty, and I'll ask you again.
Speaker 8: I mean, what has the uptake looked like so far?
Speaker 10: Well, like any new technology, you have your early users
Speaker 10: and early adopters, and that's what we're seeing now, right
Speaker 10: those who either really aren't comfortable with everything that we
Speaker 10: offer in an online environment, that might be one set
Speaker 10: of consumers, and those who are just early adopters and
Speaker 10: really want to engage with the technology. I'd say that's
Speaker 10: another set of consumers. But consumers are asking a broad
Speaker 10: range of questions everything from you know, can I bring
Speaker 10: my dog with me to this hotel? What's the fee
Speaker 10: associated with that?
Speaker 1: Right?
Speaker 10: If I cancel tomorrow? Can I do that? And so
Speaker 10: they're asking lots of different questions about their stay and
Speaker 10: they're planning trips with this, and so we're getting a
Speaker 10: pretty good adoption, I would say, you know, and as
Speaker 10: I mentioned earlier this morning, the adoption rate has literally
Speaker 10: been doubling each month that we've had this product on
Speaker 10: the shelf, and right out of the gate, within the
Speaker 10: first week, more than five percent of our engagements with
Speaker 10: Penny are actually now taking place by voice, so that's
Speaker 10: being adopted relatively quickly as well, since that just really
Speaker 10: came out.
Speaker 5: Do you have any numbers, because one to two is doubling,
Speaker 5: but that's still not a lot of customers.
Speaker 6: How many people are using it?
Speaker 10: She's had millions of conversations to date.
Speaker 8: Wow, that's more than I've had.
Speaker 5: Yeah, what kind of advantage you think this gives you
Speaker 5: your competitors, I mean, surely they're going to try and
Speaker 5: catch up or do something similar. Can you take market
Speaker 5: share right now? Being you know, first to market.
Speaker 10: You know it's to be honest, that's probably early to
Speaker 10: make that kind of a statement in the marketplace. But
Speaker 10: like all of the technologies that we've seen over the
Speaker 10: past three decades, right since we've been in the online
Speaker 10: travel game, those who are first to market with new
Speaker 10: technologies that really matter will have an edge because they
Speaker 10: adopt it faster into their booking flows and into their
Speaker 10: trip planning services. And that gives you a leg up
Speaker 10: for a few years. Because there are many of our
Speaker 10: competitors who are just much bigger, slower, more legacy companies.
Speaker 10: It just takes them time to adopt this and really
Speaker 10: apply it in the space and online travel agencies, in particular,
Speaker 10: Priceline is faster to move with this. We saw the
Speaker 10: same thing when the iPhone first came out. We were
Speaker 10: one of the first to market with a travel app.
Speaker 10: Now everybody's got an app, everybody's UXes have generally caught up.
Speaker 10: But in the early days we had a couple of
Speaker 10: years worth of a lead that lasted for some time
Speaker 10: because of our speed and innovating with these products and services,
Speaker 10: and no one's doing it the same way. Right We
Speaker 10: look at what we're doing and it's different from what
Speaker 10: some of the other leaders in the travel category are doing.
Speaker 10: So we're really excited about where we're going. And we
Speaker 10: think one of the bigger opportunities, of course, is to
Speaker 10: also have Penny answer the phone when you call our
Speaker 10: customer service center, so that you're talking with an agent
Speaker 10: who really can service you at an extreme pace and
Speaker 10: with extreme accuracy.
Speaker 6: Hopefully we can get a human though if Penny's not
Speaker 6: deep always he will always give you. I like to
Speaker 6: talk to humans like you. Brett. Thank you so much
Speaker 6: for joining us.
Speaker 5: It's really a pleasure to have you on Bloomberg Radio
Speaker 5: on television with us today. Brett Keller, their chief executive
Speaker 5: officer over at Priceline out of Norwalk, Connecticut.
Speaker 1: You're listening to the Bloomberg Business Week Podcast. Listen live
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Speaker 2: A great conversation coming up now, Let's welcome in doctor
Speaker 2: Kelly Monahan. She is a Managing director or with the
Speaker 2: Upwork Research Institute. Upwork, of course, it's a work marketplace.
Speaker 2: It connects independent, highly skilled freelance professionals from around the
Speaker 2: globe to one another. And it's interesting you take a
Speaker 2: look at the recent work that the Upwork Research Institute
Speaker 2: has done and they're out with a key workplace Practices
Speaker 2: of highly performing Companies report, and doctor Kelly Monahan, let's
Speaker 2: start there. Talk goes through some of the key practices
Speaker 2: that you've observed at such workplaces.
Speaker 11: Yeah, I think so much, Katie. But let's start before
Speaker 11: we can talk about the practices, how few leaders are
Speaker 11: actually doing them today. Our research found that only twenty
Speaker 11: seven percent of global leaders are actually engaging in what
Speaker 11: we're calling these high performing work innovator practices, and so
Speaker 11: they're hard to come by. But those three practices are
Speaker 11: those companies that are embracing distributed work. We still know
Speaker 11: there's so much conversation headlines around our too and where
Speaker 11: people should be working, but the reality is our leaders
Speaker 11: have moved beyond that and really focusing on the how
Speaker 11: of people, how they work and moving on to hybrid work.
Speaker 11: The second thing is they're embracing generative AI, but not
Speaker 11: in a way that siloed or chasing a shiny object.
Speaker 11: They're incorporating it into their tech stack and making sure
Speaker 11: they're thinking about their workforce experience as part of that.
Speaker 11: And then finally, in today's labor markets, you have to
Speaker 11: think about talent differently, and so these work innovator practices
Speaker 11: are those that are actually looking beyond their corporate walls,
Speaker 11: beyond the full time employment model and looking for freelancers
Speaker 11: and managed services examples to find talent.
Speaker 5: So what are the actual practices, Like, I feel a
Speaker 5: nap room is important, wellness room, Yeah, a lot of
Speaker 5: places don't have that. Showers would be great, a pool table,
Speaker 5: like what are we talking about here.
Speaker 11: Yeah, so those are all great perks. I would say
Speaker 11: those are perks as opposed to practices. But what our
Speaker 11: research is finding, I don't know if you guys feel
Speaker 11: the same way, but the majority of this comes to
Speaker 11: how we relate to one another in the workplace and
Speaker 11: leadership and culture. So you can have a nap room,
Speaker 11: but if you don't have leaders who actually see you
Speaker 11: when you show up to work, actually engage you in
Speaker 11: a way that's helping you become more protective and help
Speaker 11: protect your well being. What we're seeing the research, those
Speaker 11: are all external and those tend to have a short
Speaker 11: term carrot to them attached to them. But when you
Speaker 11: come and work with leaders who are engaging you, allowing
Speaker 11: you to work with the newest technology, trust that you
Speaker 11: want to work and be there, those are the type
Speaker 11: of practices that we're seeing help companies get ahead today.
Speaker 2: I think wellness rooms are important as long as you
Speaker 2: use them responsibly.
Speaker 8: You know, maybe there's a reservation system.
Speaker 6: Your boss is supposed to talk directly to you.
Speaker 8: What's that about.
Speaker 9: Exactly? And just not that in know how too.
Speaker 11: But like what we're finding, so many people are feeling
Speaker 11: far behind when it comes to a skilling perspective, and
Speaker 11: what our data and research shows that what people are
Speaker 11: actually looking for today is they want to stay future employed.
Speaker 11: They want to make sure that their employment's protected and
Speaker 11: the best way to do that is through skilling initiatives.
Speaker 11: And so we do see a lot of that come
Speaker 11: through in our data as well.
Speaker 2: Can we talk about return to office and physical presence
Speaker 2: in the office, and I'm curious what you observe among
Speaker 2: these high performing companies. I was at the night Badget
Speaker 2: Fellowship dinner last night. Ken Griffin was speaking, which was
Speaker 2: pretty interesting, and he was talking about the importance of
Speaker 2: having everyone in the office. Of course, Citadel made a
Speaker 2: point of that during the pandemic, bringing people back pretty early.
Speaker 8: What are you.
Speaker 2: Seeing when it comes again to the physical presence of
Speaker 2: such companies.
Speaker 11: Yeah, absolutely, It's a great question because it is something
Speaker 11: that we're still obviously trying to figure out across the board,
Speaker 11: across industries. That's what we can said, what the data says.
Speaker 11: So we went out and surveyed over fifteen hundred global leaders,
Speaker 11: and what we found is that one hundred percent of
Speaker 11: the companies that are winning and protecting their balance sheet
Speaker 11: today and they're protecting it by lowering the operating costs
Speaker 11: by thirty percent. They're having a year over year cash
Speaker 11: flow of over eighteen percent higher than their peers, and
Speaker 11: they're lowering their debt to equity ratio. They are enabling
Speaker 11: some level of flexible work. Doesn't mean the remote first,
Speaker 11: doesn't mean in person time still matters, but they're getting
Speaker 11: that time's right and instead of just saying arbitrarily, you
Speaker 11: have to come in the office two to three times
Speaker 11: a week, instead they're saying, one of the moments that
Speaker 11: matter where we need to bring people together. Oftentimes that's
Speaker 11: for training and development. That often means for bringing community
Speaker 11: together and really reconnecting and relationships. Oftentimes the work is
Speaker 11: best done individually and in a remote environment, but that
Speaker 11: in person time matters, and those high performing companies are
Speaker 11: bringing people together at those critical moments.
Speaker 5: The other good thing that Citadel does for his employees, well,
Speaker 5: at least if you're an intern there, you get twenty
Speaker 5: thousand dollars a month. I like that, which I think
Speaker 5: is a pretty good work environment. How much does that matter, actually, doctor.
Speaker 9: For it?
Speaker 11: What do you mean in what way?
Speaker 5: Just in terms of paying somebody a ton of money?
Speaker 5: Does that have a huge effect on that person's motivation.
Speaker 11: Hey, you know what, that's a great question, Like I
Speaker 11: just want to develop myth because I think that is
Speaker 11: oftentimes we think, Okay, pay people more and they're going
Speaker 11: to work harder. Absolutely, you have to pay people a
Speaker 11: fair adjustable salary and wage. I mean that is like
Speaker 11: table stakes in today's environment. But what's more important are
Speaker 11: those intrinsic motivations. Again, that's do you have a sense
Speaker 11: of autonomy in the way you're working. Do you feel
Speaker 11: connected to your coworkers and your colleagues, do you feel respected,
Speaker 11: do you have dignity in your job? Those intrinsic motivations
Speaker 11: tend to leave people to do much more productive workforces. Yes,
Speaker 11: money is important, let's make sure we get that right.
Speaker 11: But the reality is, again that's going to be short
Speaker 11: term in terms of the way it's feeling your motivation.
Speaker 8: Yeah, I don't know, I really like money.
Speaker 6: No, I was, I mean work to some extent. We're kidding,
Speaker 6: obviously we do like money.
Speaker 5: Yeah, but you know, I always think it's interesting to
Speaker 5: look into the science of how happy money actually makes you.
Speaker 5: If you're an intern, of course, working there for three
Speaker 5: months during the summer, it's going to be sweet. You
Speaker 5: have an end in sight, yes, exactly, But you know,
Speaker 5: for a regular person, I don't know as a cityadel
Speaker 5: employee necessarily happier than an employee of.
Speaker 8: Going maybe if they work in Miami.
Speaker 6: You know, how about that? Does the city matter?
Speaker 5: I mean, I feel like I'd be much happier with
Speaker 5: a company that was headquartered in Miami than one that
Speaker 5: was headquartered in like New York Chicago, Yeah.
Speaker 8: Where they used to be.
Speaker 11: Well, listen, I'm an Arlando and we just came through
Speaker 11: a hurricane. So I do think place matters a lot.
Speaker 11: You know, in today's environment. What matters to me the
Speaker 11: most just going through the situation is again managers and
Speaker 11: colleagues who are checking on me, providing that support. When
Speaker 11: it comes to place, it's really much more who's your
Speaker 11: community within that place as opposed to the city itself.
Speaker 11: And I think again, so we're in the forefront of this,
Speaker 11: and I think we're going to continue to see internal
Speaker 11: mobility and where people choose to work again depending on
Speaker 11: where their company and how open and flexible they are.
Speaker 11: But the reality is it again, is so much less
Speaker 11: about where we work today and so much more about
Speaker 11: how and what our research continues to point to.
Speaker 2: All right, doctor, really appreciate your time, really appreciate you
Speaker 2: rolling with us too on this Friday afternoon. That is
Speaker 2: doctor Kelly Monahan, of course, managing director over at the
Speaker 2: Upwork Research Institute, joining us from Orlando, Florida.
Speaker 8: Glad of course that you are safe and well.
Speaker 9: Brother mac.
Speaker 6: A journal.
Speaker 12: How about you let me drive?
Speaker 9: Oh no, no, no, no, who's going to drive?
Speaker 6: All right, please, I'll do the ride gravels.
Speaker 11: Let's mate, I want to try it.
Speaker 5: It's the question that try.
Speaker 6: This is the Drive to the Globe.
Speaker 4: Dot com commuteck Well, brut yield it.
Speaker 6: Don on Blueberg Radio.
Speaker 5: All right, without question, the greatest st string that has
Speaker 5: ever been compiled.
Speaker 6: This is the Drive to the Clothes.
Speaker 5: I'm Matt Miller here in the Interactive Brokers studio with
Speaker 5: Katie Greifeld. We are filling in for Tim and Carroll,
Speaker 5: who are on the doss as the British would say.
Speaker 6: They're on a travel day.
Speaker 5: Back from Los Angeles, and God bless them, yeah, God
Speaker 5: bless them for those perks that they're able to wrangle.
Speaker 6: Somehow, we want.
Speaker 5: To talk about the forty fifth record high on the
Speaker 5: s and p Okay, we're not sure it's going to
Speaker 5: close at this level.
Speaker 8: There are eighteen minutes for things.
Speaker 5: To go wrong exactly, But you know, fifty eight eighteen,
Speaker 5: we're already above almost every strategist's target on the street.
Speaker 5: We're starting to see strategists raise them up. But last
Speaker 5: time I checked out of twenty two that we survey,
Speaker 5: only three think that we're going to go higher by
Speaker 5: year end. I'm sure the rest do also, but they
Speaker 5: just haven't put in their new numbers yet.
Speaker 6: Let's talk to David Diets about this.
Speaker 5: He's managing principal senior investment strategists over at Pea Pack
Speaker 5: Private Wealth Management. Joins us here in the studio. David,
Speaker 5: great to have you here in person. What do you
Speaker 5: think about this record after record after record? I mean
Speaker 5: I thought the FEDS rates were restrictive, but certainly not
Speaker 5: in terms of the stock market.
Speaker 12: Yeah, absolutely so we're in a bit of a goldilocks
Speaker 12: situation here. I mean, earnings is always the most important
Speaker 12: thing as far as I'm concerned for the market, and
Speaker 12: of course with the banks reporting today, that's the unofficial
Speaker 12: kickoff of the third quarter earning season and they basically
Speaker 12: blew it out of the park, beating expectations very handily.
Speaker 12: And you know, the banks are important not just because
Speaker 12: what their numbers are, but as barometers really of the economy,
Speaker 12: because they're dealing with companies and all sorts of sectors
Speaker 12: all day long. And so I think that developed a
Speaker 12: great positive sentiment. Of course, the second most important thing
Speaker 12: really is interest rates. Every day people are saying should
Speaker 12: I buy a bond, should buy a stock? And these
Speaker 12: these as these interest rates have started to recede from
Speaker 12: their highs about a year ago, and as the forecast
Speaker 12: from the Federal Reserve is for lower interest rates, people
Speaker 12: are shifting money, I believe, from fixed income into stocks.
Speaker 12: And of course, in the real economy, that makes capex
Speaker 12: expenditures a little bit more affordable if the price of
Speaker 12: money to build the factories or whatever it is is less.
Speaker 12: And of course consumers too, going out to buy a car,
Speaker 12: going to look at a mortgage. Mortgage rates are a
Speaker 12: good one percent lesson they were not too long ago.
Speaker 6: I ate on cars are still a little bit too high.
Speaker 8: Yeah, Matt actually knows a lot about that.
Speaker 6: Only someone would make the interest on car loans.
Speaker 2: Tax deductivity, and you know, we talked about that with
Speaker 2: the other David, though, we have to talk to this David,
Speaker 2: and we're going to talk about your ranking system because
Speaker 2: I think it's interesting that you said it's earnings and
Speaker 2: then it's interest rates, because we talk to a lot
Speaker 2: of people who take the other side. When you say
Speaker 2: that earnings are most important. Are you talking at the
Speaker 2: index level? Are you talking at the single stock level?
Speaker 6: Really both?
Speaker 12: I mean, at the end of the day, you buy
Speaker 12: a company for not only their earnings today, but for
Speaker 12: the growth of earning. Interest rates will fluctuate up and down.
Speaker 12: But if ultimately a company's not going to increased sales,
Speaker 12: not going to increase earnings, is not going to go anywhere.
Speaker 12: So I do think that's most important. Obviously, you like
Speaker 12: to have both the ind X earnings going up as
Speaker 12: well as your particular company's earnings going up. But if
Speaker 12: you can't have the index at least you can you
Speaker 12: hire a stock picker.
Speaker 5: Were you encouraged by JP Morgan this morning and the
Speaker 5: slew of you know, wells Fargo who else?
Speaker 6: Reported this morning?
Speaker 5: The kickoff black Rock exactly eleven and a half trillion
Speaker 5: dollars in Access Center Management. Were you encouraged by these
Speaker 5: earnings because they do undergird the entire.
Speaker 6: Economy of the United States.
Speaker 8: That's the second time I've heard you say undergird.
Speaker 5: I actually thought of that word this morning, and I'm
Speaker 5: gonna keep saying no. I don't even know if it's
Speaker 5: a real word.
Speaker 8: No, it is.
Speaker 12: So it was encouraging, I think for a number of reasons.
Speaker 12: I think a lot of people were looking at their portfolios,
Speaker 12: particularly their commercial loans. Were they going to see some
Speaker 12: massive write offs or something like that would should suggest
Speaker 12: that a lot of borrowers are having trouble paying. We
Speaker 12: can see any of that. There's a little bit of
Speaker 12: weakness in the credit card portfolio, but I think most
Speaker 12: strategists are saying yes. At the very lowest areas of
Speaker 12: the of you know, the consumer spending levels, those people,
Speaker 12: unfortunately are having problems, but you know, the heavy hitters
Speaker 12: are paying their bills and spending more. Certainly, the net
Speaker 12: interest margins, that all important gap between what they're paying
Speaker 12: on their deposits and what they're getting for their loans
Speaker 12: continues to look much better than expectations. So I thought
Speaker 12: it looked pretty good.
Speaker 8: Look pretty good.
Speaker 2: Well, we have a lot more bank earnings coming up,
Speaker 2: and then we get the regional banks, which should be
Speaker 2: really interesting. They've been interesting, maybe more interesting than the
Speaker 2: big banks, of course, since the.
Speaker 6: Maybe more important to the economy.
Speaker 5: Right exactly, because like if you're if you care, David
Speaker 5: about the whole economy, do you really care about Golden
Speaker 5: Sachs trading revenue?
Speaker 12: Well, they are major there, it's in the now, it's
Speaker 12: a major bank. Certainly, there is a difference in their
Speaker 12: businesses because you've got those major banks have a lot
Speaker 12: of trading revenue. They're exposed to that m and a market,
Speaker 12: that IPO market. Those are things that are not really
Speaker 12: part of the business of the regional bank. So I
Speaker 12: agree with you that the regional banks get, you know,
Speaker 12: a better sense as to the you know, how things
Speaker 12: are going on main street in the middle market areas.
Speaker 8: You mentioned the Dow. And unfortunately I don't care about
Speaker 8: the Dow, which that knows very well. I still care though, yeah, no,
Speaker 8: and a lot of people.
Speaker 2: Do I care about the small caps? We gotten, you know,
Speaker 2: we talk about it because usually we can throw throw
Speaker 2: show rather three indexes.
Speaker 8: So it's like, do we go with the Dow do
Speaker 8: we go with.
Speaker 4: The small caps.
Speaker 2: You should have had the Russell two thousand up for
Speaker 2: the past three months, I would argue, because they've been
Speaker 2: a very interesting cohort of this overall equity market.
Speaker 12: Yeah.
Speaker 1: Absolutely so.
Speaker 12: We've actually been a fan, perhaps a little earlier than
Speaker 12: we should have been, of the small caps, and the
Speaker 12: reason quite simply is their valuations are much cheaper relative
Speaker 12: to large cap of course versus the mag seven, and
Speaker 12: they're also cheaper than they have been trading at typically.
Speaker 12: Actually they usually trade at a premium to the large
Speaker 12: caps because they have word growth potential. We have not
Speaker 12: seen that, so we keep thinking that there will be
Speaker 12: a reversion to the mean. I think the main headwind
Speaker 12: for them has been those high borrowing rates and the
Speaker 12: potential threat of recession. Because they're smaller, they have less
Speaker 12: of a cushions that they're going to be more susceptible
Speaker 12: to the vagaries of the economy, and.
Speaker 6: They're more likely to have to go to their local.
Speaker 12: Bank, who, by the way, was very sensitive as to
Speaker 12: how much more credit they wanted to extend. But now
Speaker 12: with interest rates coming down, with evaluations being really at
Speaker 12: nosebleed levels for many of the back seven. I think
Speaker 12: investors are looking to broaden out their portfolios and take
Speaker 12: advantage of that. And of course today you will notice
Speaker 12: that the Russell two thousand is beating the pants off
Speaker 12: of very fine performance of the other indexes.
Speaker 5: There you go, Does the election matter to you?
Speaker 6: I mean not personally, but as a strategist.
Speaker 12: Well so, yes and no. It really depends on your
Speaker 12: time frame. Now, we urge our investors to take a
Speaker 12: long term time frame because that gives you the best
Speaker 12: chance of having success making money. And I always go
Speaker 12: back to what Warm used to say, Oh, I've been
Speaker 12: investing through sixteen administration, state Republican eight Democrat. I've done
Speaker 12: just as well no matter who is in charge in
Speaker 12: the White House. So we don't think longer term it
Speaker 12: really affects what's going on in the short term though.
Speaker 12: I do think there's some hesitancy we heard from Delta
Speaker 12: yesterday where people are not even wanting to book travel
Speaker 12: around the election itself because people I don't know, perhaps
Speaker 12: are afraid of disruption in terms of the investment, in
Speaker 12: terms of the election results. So we think that after
Speaker 12: we get past the election, you could actually have another
Speaker 12: tailwind to the market.
Speaker 2: David It is great to see you. Really appreciate you
Speaker 2: coming by on this Friday afternoon. That is David Deets.
Speaker 2: He is managing principle and senior investment strategist over at
Speaker 2: Peapack Private Wealth Management.
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