WEBVTT - Single Best Idea with Tom Keene: Ed Yardeni & Brad Case

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news a single best idea

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<v Speaker 1>and we could have done five single best ideas today.

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<v Speaker 1>Just a brilliant day, particularly for discussion of the stock market.

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<v Speaker 1>To use a phrase, it's antiquated. Amy wu Silverman was

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<v Speaker 1>brilliant on derivative strategy. Joe Mazzola Charles Schwab maybe the

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<v Speaker 1>best interview we've ever done with them. He was just

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<v Speaker 1>outstanding on the flows that are going on out there

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<v Speaker 1>right now in this whole battle between the unknown unknowns,

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<v Speaker 1>much of it coming out of our politics and the

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<v Speaker 1>idea of retail versus institutional. Just a great, great day

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<v Speaker 1>for equity study. We started strong with Edward Yardenny in

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<v Speaker 1>October of I believe it was twenty twenty two. Ed

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<v Speaker 1>Jardanny and separately Ral fancomepad get on board. It is

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<v Speaker 1>a new bull market, and your Denny reaffirm that today.

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<v Speaker 2>I have been recommending overweighting the US since twenty ten,

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<v Speaker 2>and it's worked out extremely well. But I could overstay

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<v Speaker 2>my welcome here. Certainly during the first quarter it made

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<v Speaker 2>more sense to overweight Europe than it made sense to

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<v Speaker 2>overweight the United States. But I kind of view that

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<v Speaker 2>as just a temporary situation. I think the US will

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<v Speaker 2>continue to outperform, though it is it's that perform for

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<v Speaker 2>so long that it's about seventy five percent of the

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<v Speaker 2>market cap of the global stock market. So I mean

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<v Speaker 2>there is a limit to how much better it can get,

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<v Speaker 2>I suppose, but it's been quite a run.

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<v Speaker 1>And your Denny of your Denny research, and then we

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<v Speaker 1>looked at real estate, Brad Case, we don't have ound enough.

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<v Speaker 1>He's with Middleburg Communities, which is in the Greater Virginia area,

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<v Speaker 1>and they're doing multifamily and they're thinking about housing. He

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<v Speaker 1>gets away with this because of his heritage of Fannie

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<v Speaker 1>May economics and also working with the great Robert Schiller

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<v Speaker 1>at Yale University. What a privilege that is. Brad Case

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<v Speaker 1>was incendiary today over rent versus buy.

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<v Speaker 3>Let's listen, Well, that is usually the case, and the

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<v Speaker 3>reason is that people don't realize when they buy a

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<v Speaker 3>house they have to give up a huge chunk of

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<v Speaker 3>money the down payment, and if instead they put that

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<v Speaker 3>money into productive investments, especially in the stock market, then

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<v Speaker 3>in the long run they would probably build more wealth.

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<v Speaker 3>So there is this myth that the way to build

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<v Speaker 3>wealth is to buy a house, and the reality is

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<v Speaker 3>that usually that's not the case. If you're able to

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<v Speaker 3>buy a house when houses are cheap and the stock

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<v Speaker 3>market is overvalued, then great, take your money out of

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<v Speaker 3>the stock market and buy a house. That's not our

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<v Speaker 3>situation right now. Right now, houses are very expensive and

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<v Speaker 3>if houses crashed, then you'll probably see the stock market

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<v Speaker 3>crash at the same time. So generally speaking, to build wealth,

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<v Speaker 3>you're better off renting.

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<v Speaker 2>Now.

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<v Speaker 3>There are other reasons to buy, and some people want

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<v Speaker 3>to buy just so they can say they're homeowners. That's

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<v Speaker 3>not the same as building wealth.

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<v Speaker 1>What a response we got from those comments. Thank you

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<v Speaker 1>for the heated emails and a huge response out on YouTube.

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<v Speaker 1>We have a live chat on YouTube and sometimes it

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<v Speaker 1>really gets going. Braad Case Today on our podcast on Apple,

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<v Speaker 1>on Spotify across the nation, but mostly on YouTube podcasts.

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<v Speaker 1>This is a single best idea