WEBVTT - Markets, Cannabis, And Rivian (Podcast) 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.520 --> 0:00:15.600 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.600 --> 0:00:18.439 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.239 at Bloomberg dot com slash podcast. I want to bring 0:00:22.239 --> 0:00:25.799 on Veronica Willis. She's a vice president investment strategy analysts 0:00:25.840 --> 0:00:30.000 at the Wells Fargo Investment Institute. Franca, I'm guessing you're 0:00:30.120 --> 0:00:34.559 having some I guess interesting calls with your clients here 0:00:34.560 --> 0:00:37.239 as these markets sell off here and uh during this 0:00:37.560 --> 0:00:41.600 first four and a half months of two gives a 0:00:41.600 --> 0:00:43.479 sense of kind of what your clients are asking you 0:00:43.479 --> 0:00:48.440 and maybe wait, wait what you're telling them? Absolutely, you're right. 0:00:48.560 --> 0:00:52.600 We get calls all the time really concerned about inflation. 0:00:53.320 --> 0:00:55.360 Have we seen the peak in inflation? What are we 0:00:55.400 --> 0:00:59.640 expecting to happen with inflation? And then also, you know, 0:01:00.040 --> 0:01:03.319 what should I do as a client when fox are 0:01:03.320 --> 0:01:05.880 down and bonds are down together? Where can I go? 0:01:06.560 --> 0:01:10.440 And so I'll kind of start off with looking at inflation. 0:01:11.000 --> 0:01:13.280 It might be a little bit too early to tell 0:01:13.319 --> 0:01:16.080 whether or not inflation is peeped. With cp I we 0:01:16.120 --> 0:01:19.039 saw a little bit of a slowdown from the previous month. 0:01:19.360 --> 0:01:21.640 The same with p p I, but both a little 0:01:21.640 --> 0:01:24.959 bit higher than what analysts were expecting, and so that's 0:01:24.959 --> 0:01:28.280 something we really want to watch really closely with those increases, 0:01:28.400 --> 0:01:31.920 especially in the services areas where inflation might be a 0:01:31.920 --> 0:01:36.360 little stickier than many of us expected. And so inflation 0:01:36.440 --> 0:01:39.560 is something we're watching closely over the next eighteen months. 0:01:39.600 --> 0:01:43.200 We think inflation can remain um above those long term 0:01:43.200 --> 0:01:49.600 averages through three before sort of returning to more normalized level. 0:01:52.440 --> 0:01:56.520 That's next year, Paul, I know where we're thinking about. 0:01:56.520 --> 0:01:58.640 We're thinking about next year, and you know, we really 0:01:58.640 --> 0:02:01.720 want to try the guy our clients to that longer 0:02:01.800 --> 0:02:06.720 term perspective, especially if they're in longer term plans, to 0:02:06.840 --> 0:02:10.040 not make rash decisions because of the short term volatility 0:02:10.200 --> 0:02:13.880 and to really stick to that long term plan. Well, 0:02:13.919 --> 0:02:18.720 recently in our vice, our allocation advice, we've brought a 0:02:18.800 --> 0:02:21.520 little bit more neutral with our stocks. If you have 0:02:21.960 --> 0:02:26.800 if you have a longer term perspective Veronica um and 0:02:26.840 --> 0:02:31.960 you're worried about inflation that far out do you, you know, 0:02:32.919 --> 0:02:36.280 start getting into stocks now, assuming you just hold out 0:02:36.360 --> 0:02:38.840 or start adding to your position now if you've already 0:02:38.840 --> 0:02:42.000 got it just because you have a longer term position. Okay, 0:02:42.040 --> 0:02:44.200 we've taken a lot of pain, but and and there 0:02:44.200 --> 0:02:47.079 may be more to come. Um, but do you think 0:02:47.120 --> 0:02:50.960 stocks are a good way to head against inflation? Absolutely, 0:02:51.400 --> 0:02:55.000 That's exactly what we've been telling our clients. If you've 0:02:55.040 --> 0:02:58.800 got a targeted allocation to your equities, you want to 0:02:58.800 --> 0:03:03.080 make sure that you are moving back into equities during 0:03:03.120 --> 0:03:06.160 these down terms. If you're a long term investor, you 0:03:06.200 --> 0:03:08.360 really want to make sure that you've got that allocation 0:03:08.440 --> 0:03:11.399 set up the way that you intended it so that 0:03:11.639 --> 0:03:14.760 when markets start to recover, you're able to recover quickly 0:03:15.120 --> 0:03:19.400 and not be over allocated in the less risky areas 0:03:19.480 --> 0:03:23.720 like bonds. And it's hard to weather that short term volatility, 0:03:23.840 --> 0:03:26.400 but if you're thinking out to that long term, you've 0:03:26.440 --> 0:03:28.680 got to keep that perspective and make sure that that 0:03:28.760 --> 0:03:33.040 allocation is set up so that you can, you know, 0:03:33.120 --> 0:03:38.119 recover quickly when markets eventually upswing right and Veronica, what's 0:03:38.120 --> 0:03:41.160 the Wells Fargo economic call? Are you guys calling for 0:03:41.240 --> 0:03:42.920 a recession? Because I'm sure you know a lot of 0:03:42.960 --> 0:03:45.120 folks are concerned that maybe this federal reserve may go 0:03:45.200 --> 0:03:48.200 a little too fast, too quickly, and in fact push 0:03:48.280 --> 0:03:51.200 this economy into a recession. What do you guys think 0:03:51.240 --> 0:03:56.520 about that? Here in the US, we are expecting economic 0:03:56.560 --> 0:04:00.960 growth this year um and economic growth next year, but 0:04:01.080 --> 0:04:04.240 at lower levels than what we were expecting before. So 0:04:05.040 --> 0:04:09.440 our base case is slowing economic growth, but we're acknowledging 0:04:09.480 --> 0:04:11.920 that the risks of the recession are rising. It's something 0:04:11.960 --> 0:04:15.240 that we're watching very closely, especially looking at the consumer 0:04:15.320 --> 0:04:18.680 spending data. That's something we'll be watching very closely. We've 0:04:18.680 --> 0:04:22.680 seen weakening consumer sentiment not yet spill over into weakening 0:04:22.880 --> 0:04:26.039 weaker consumer spending, but that's something that we're keeping a 0:04:26.080 --> 0:04:28.839 close eye on because that's a huge driver for the U. 0:04:28.920 --> 0:04:34.000 S economy. What do you think about the moves that 0:04:34.040 --> 0:04:36.640 we've seen in crypto? How much does it matter to 0:04:37.240 --> 0:04:41.400 you know, real investors, to to your clients, um, because 0:04:41.400 --> 0:04:44.160 they're making huge headlines and it's like watching a train 0:04:44.200 --> 0:04:47.280 wreck here in slow motion, but we're not seeing much 0:04:47.320 --> 0:04:54.080 contagion into the you know, playing vanilla uh financial assets 0:04:55.960 --> 0:04:58.960 right now, we don't have any kind of recommended allocations 0:04:59.440 --> 0:05:03.320 in crypto, and so we kind of guide our investors towards, 0:05:04.160 --> 0:05:06.960 you know, a stock bond and then if you've got 0:05:06.960 --> 0:05:10.400 exposure in real assets you like um commodities right now 0:05:11.320 --> 0:05:13.880 in the longer term perspective, and so that's sort of 0:05:14.040 --> 0:05:17.159 where we're kind of guiding our clients towards those types 0:05:17.160 --> 0:05:22.200 of assets as opposed to something like crypto. N I 0:05:22.200 --> 0:05:25.640 guess a lot of folks are saying, you know, stagflation 0:05:25.760 --> 0:05:28.400 is probably the bigger risk than recession. And you know, 0:05:28.640 --> 0:05:30.839 so we got you got inflation, which we do. You 0:05:30.839 --> 0:05:33.960 have slowing growth with which we do. Is that something 0:05:34.000 --> 0:05:38.240 that you're talking to your clients about. It's it's a 0:05:38.320 --> 0:05:42.880 question we've gotten sometimes just what will you know the 0:05:42.960 --> 0:05:47.479 slow growth and this higher inflation. Mean, we do recognize 0:05:47.480 --> 0:05:51.719 that inflation should remain higher than are those longer term 0:05:51.760 --> 0:05:54.839 averages in the near term, but we are expecting it 0:05:54.960 --> 0:05:58.400 to slow. So it's a risk, but it's not our 0:05:58.520 --> 0:06:00.920 our basic case, it's not our base risk that we're 0:06:00.920 --> 0:06:03.960 seeing right now. We're a little bit more concerned about 0:06:03.960 --> 0:06:07.240 the flowing and economic growth. All right, ron Kay, thank 0:06:07.240 --> 0:06:10.440 you so much for joining us. Appreciate getting your thoughts 0:06:10.440 --> 0:06:14.440 here on these markets. Ronica willis investment strategy analyst at 0:06:14.440 --> 0:06:21.800 Wells Fargo Investment Institute. Check out with Robert Teater, head 0:06:22.000 --> 0:06:26.119 of Investment Policy and Strategy Group at Silver Crest Asset Management. Robert, 0:06:26.279 --> 0:06:28.400 you know in the wall of worry that is out there, 0:06:28.440 --> 0:06:32.039 there are increasing number of bricks here, most recently, I guess, 0:06:32.080 --> 0:06:36.000 geopolitical risk. Are there any positive science out there that 0:06:36.080 --> 0:06:39.160 might support this market at some point? I think that's 0:06:39.200 --> 0:06:42.000 a great question. There are a massive number of bricks 0:06:42.000 --> 0:06:43.920 in that wall of worry. I think most of them 0:06:43.960 --> 0:06:46.840 have been reasonably well factored into the market here. In 0:06:46.920 --> 0:06:48.680 other words, they're pretty well known. But I think the 0:06:49.000 --> 0:06:52.240 most important item to crack some of this downside momentum 0:06:52.279 --> 0:06:54.359 is is solving some of those problems and solving some 0:06:54.440 --> 0:06:56.320 of those bricks. And the and the most important of 0:06:56.320 --> 0:06:58.680 all the bricks, of course, is inflation. And so that's 0:06:58.680 --> 0:07:00.560 where we take a bit of a deeper. I've and say, 0:07:00.600 --> 0:07:02.560 you know, what's going on with these metrics and inflation, 0:07:02.600 --> 0:07:04.560 and are we starting to see some glimmers of hope? 0:07:04.760 --> 0:07:07.040 And I think we are, and so hopefully that will 0:07:07.080 --> 0:07:09.880 start to be reflected going forward in prices. Where are 0:07:09.920 --> 0:07:13.440 you seeing glimmers of hope? Yes, there there aren't a lot. 0:07:13.520 --> 0:07:15.800 So from the very beginning of the inflation problem, we've 0:07:15.800 --> 0:07:19.200 asked ourselves three questions, which is inflation, is its spiking, 0:07:19.360 --> 0:07:21.600 is it's spreading, and is it's sticking around? Clearly, it's 0:07:21.600 --> 0:07:24.160 been sticking around for a long time. It has spiked 0:07:24.280 --> 0:07:26.720 quite a bit, although perhaps it's starting to slow a 0:07:26.760 --> 0:07:28.760 little bit as the month over month eatings have come 0:07:28.800 --> 0:07:31.000 in just a little bit lighter than prior months. And 0:07:31.040 --> 0:07:32.960 then to the question of is it's spreading, We've done 0:07:33.000 --> 0:07:36.239 some analysis around all the categories within c p I, 0:07:36.280 --> 0:07:39.160 looking at where they sit versus their three year pre 0:07:39.280 --> 0:07:42.320 COVID average, and we've seen a slight decline in the 0:07:42.400 --> 0:07:45.400 number of categories that are showing inflation above that prior 0:07:45.480 --> 0:07:48.120 historical average. It's only slight, so you know, there's still 0:07:48.360 --> 0:07:52.600 seventy categories above the three year average, but that's down 0:07:52.680 --> 0:07:57.000 from in prior months. So we'll see if this trend 0:07:57.080 --> 0:08:00.320 continues a little bit for inflation at least perhapsing and 0:08:00.360 --> 0:08:03.400 maybe easing a little bit in coming months. Robert, are 0:08:03.440 --> 0:08:05.040 you are you in the camp that believes that the 0:08:05.040 --> 0:08:09.200 federal reserve can materially rain in inflation. I'm not sure 0:08:09.240 --> 0:08:10.960 i am, because it just feels like it's so much 0:08:10.960 --> 0:08:13.960 more supply side driven to the all the supply chain 0:08:14.200 --> 0:08:17.680 challenges that have developed over the actual economy. Though, Yeah, 0:08:17.960 --> 0:08:21.120 that'll do it, but that's not we're looking for. How 0:08:21.120 --> 0:08:23.280 do you think about the FEDS ability, Robert to to 0:08:23.400 --> 0:08:26.040 kind of get a handle on inflation, right that and 0:08:26.080 --> 0:08:28.000 that is the blunt tool instrument, and I think that's 0:08:28.040 --> 0:08:30.680 partially what investors are starting to worry about here. Like you, 0:08:30.760 --> 0:08:32.760 I share the view that inflation is a pretty complex 0:08:32.800 --> 0:08:35.080 problem here. A lot of it is related to supply 0:08:35.200 --> 0:08:37.160 chains and whack the mole problems and a lot of 0:08:37.200 --> 0:08:40.120 different things going on um Clearly, one area though, where 0:08:40.120 --> 0:08:43.000 the rate hikes transmit pretty quickly is in the fact 0:08:43.040 --> 0:08:44.680 that you know, we've seen rates of all types go 0:08:44.760 --> 0:08:47.200 up pretty quickly, especially for things like mortgages, and with 0:08:47.320 --> 0:08:49.880 housing being a big part of cp I, that will 0:08:49.920 --> 0:08:52.320 hopefully start to moderate some of the price increases that 0:08:52.360 --> 0:08:54.559 we're seeing in the housing market and transmit to a 0:08:54.600 --> 0:08:57.080 little bit more stability and pricing overall. But as for 0:08:57.120 --> 0:08:59.760 the other increases, those are related to a lot of problem, 0:08:59.760 --> 0:09:02.640 solve thing that needs to go on industry by industry. 0:09:02.880 --> 0:09:05.840 So what is an investor to do right now? Especially 0:09:05.840 --> 0:09:08.920 if UM we are in a position where markets are 0:09:08.920 --> 0:09:13.800 going to just sure and lower and lower UM. Where 0:09:13.840 --> 0:09:16.839 where does an investor go? Well, I think one of 0:09:16.880 --> 0:09:18.880 the things here that's really important is to try to 0:09:18.920 --> 0:09:21.080 focus on time horizon and that's not easy to do 0:09:21.160 --> 0:09:23.960 when markets are sometimes going up and down three, you know, 0:09:24.160 --> 0:09:26.320 one day after the other. But I think it is 0:09:26.320 --> 0:09:29.080 really these are going down three one day after the other. 0:09:29.320 --> 0:09:30.880 They have been and there's been there's been a few 0:09:30.920 --> 0:09:32.760 that have been up. But I agree it is a 0:09:32.840 --> 0:09:34.840 very choppy environment and I think it's I think it 0:09:34.920 --> 0:09:37.240 is likely to stay that way. It's not an easy 0:09:37.320 --> 0:09:39.440 environment to make some changes in though, because I do 0:09:39.520 --> 0:09:42.760 think that the longer term fundamental backdrop is still pretty sound. 0:09:42.800 --> 0:09:45.840 So forecast for the economy are still for pretty decent 0:09:45.840 --> 0:09:47.959 growth New York FED at at four percent or so, 0:09:48.160 --> 0:09:50.800 Earnings came in pretty solid this quarter, and the outlook 0:09:50.800 --> 0:09:53.280 going forward is pretty solid. So I think the underlying 0:09:53.320 --> 0:09:56.600 fundamental picture is still very decent, if not good, But 0:09:56.679 --> 0:09:59.240 it's in this macro environment that's been very difficult and 0:09:59.240 --> 0:10:01.360 The challenge there of is we don't know the timeline 0:10:01.360 --> 0:10:03.880 exactly when those problems will change, but when they do, 0:10:03.960 --> 0:10:05.880 those clouds will start parting. And I think what we 0:10:05.920 --> 0:10:08.000 see behind it is is a pretty good backdrop again 0:10:08.040 --> 0:10:11.080 for the economy and earnings. Is it even worth your 0:10:11.120 --> 0:10:13.880 time and analysis and investors time and analysis to try 0:10:13.960 --> 0:10:16.960 to get a sense of where the bottom is? Are 0:10:16.960 --> 0:10:19.400 there any valuation calls to be made? Is there a 0:10:19.559 --> 0:10:22.480 volume call to be made where you say, Okay, this 0:10:22.720 --> 0:10:26.480 feels like the bottom. Yeah, that's never easy to do. 0:10:26.600 --> 0:10:28.880 Certainly evaluations come in quite a bit, so that's a 0:10:28.920 --> 0:10:31.640 bit compelling. Um. I think sentiment has gotten to the 0:10:32.080 --> 0:10:35.480 sort of maximum awfulness, So that's potentially another sign that 0:10:35.520 --> 0:10:37.440 we could be nearing a bottom. And the thing that 0:10:37.480 --> 0:10:40.000 I'm really looking for is when do we see any 0:10:40.080 --> 0:10:43.240 change in the things that have caused the momentum to 0:10:43.280 --> 0:10:45.360 the downside to really build? And again, in my mind, 0:10:45.520 --> 0:10:47.920 there's really only two ways to break that downside momentum. 0:10:48.000 --> 0:10:50.440 One is to see some improvement in inflation, the biggest 0:10:50.480 --> 0:10:51.959 brick in the in the wall of where as he 0:10:52.000 --> 0:10:54.040 were saying, And the second would be if we get 0:10:54.040 --> 0:10:56.080 the passage of time and a little bit of stability, 0:10:56.120 --> 0:10:58.640 and investors again are allowed to you know, enabled to 0:10:58.679 --> 0:11:00.520 look forward a bit and look at the picture that's 0:11:00.520 --> 0:11:02.360 headed over the next six quarters or so when we 0:11:02.400 --> 0:11:04.840 think the earnings backdrop is good. So either of those 0:11:04.840 --> 0:11:06.760 two things I think would turn the tide of it. 0:11:06.760 --> 0:11:09.400 It's a pretty challenging and unpredictable environment right now. Do 0:11:09.440 --> 0:11:11.760 you like any alternative assets? I mean, with your hedge 0:11:11.760 --> 0:11:16.000 fund history, where are you hedging? Yeah, no, that's a 0:11:16.000 --> 0:11:19.520 good question. It should be a good environment for a 0:11:19.559 --> 0:11:22.280 number of different types of alternative investments, partly because of 0:11:22.320 --> 0:11:25.559 the time horizon function and partly because of the ability 0:11:25.600 --> 0:11:27.480 to hedge out some market risk. We do think that 0:11:27.559 --> 0:11:30.599 stock selection plays a really key role here, So strategies 0:11:30.640 --> 0:11:33.160 like long short equity or active equity management on the 0:11:33.200 --> 0:11:35.520 on the public market side, um, we like a lot 0:11:35.559 --> 0:11:38.640 because we think again that problem solving is happening industry 0:11:38.640 --> 0:11:41.120 by industry, company by company having to deal with the 0:11:41.160 --> 0:11:43.040 myriad of issues that have come up as a result 0:11:43.080 --> 0:11:46.199 of COVID and supply chain challenges and staffing challenges, and 0:11:46.440 --> 0:11:48.360 we could go on and on with the challenges, but 0:11:48.440 --> 0:11:50.760 companies solving those, we think sets up very well for 0:11:50.800 --> 0:11:53.480 stock selection here, all right, Robert here, thank you so 0:11:53.559 --> 0:11:56.160 much for joining us. Good good stuff there, Robert Teeter, 0:11:56.320 --> 0:11:58.640 head of Investment Policy and Strategy Group of Silver Crust 0:11:58.679 --> 0:12:05.120 Asset Management. Now, let's get to marijuana. Kim Rivers joins 0:12:05.240 --> 0:12:10.160 us chair and CEO over at true leave UM and 0:12:10.920 --> 0:12:14.840 can tell us, first of all, what exactly you're doing 0:12:14.840 --> 0:12:18.719 in the industry. You're growing? Are you an intermediary? Are 0:12:18.720 --> 0:12:23.760 you selling? What's true leave do sure So truly is 0:12:23.800 --> 0:12:27.160 a multi space operator. We operate in eleven markets across 0:12:27.200 --> 0:12:31.120 the US. We have a very large fut print with 0:12:31.360 --> 0:12:33.640 the largest retail supprint of a hundred and sixty five 0:12:33.679 --> 0:12:37.400 retail locations and over four million square feet of cultivation 0:12:37.400 --> 0:12:41.000 and processing, which allows us at the scale to manufacture 0:12:41.080 --> 0:12:45.360 over SKUs that we distribute through both retail and wholesale channels. 0:12:45.400 --> 0:12:49.520 All right, So, to me, the most interesting thing complex 0:12:49.559 --> 0:12:53.599 and difficult in the cannabis industry right now is UM 0:12:53.640 --> 0:12:59.280 identifying strains and translating that to the consumer. I just 0:12:59.320 --> 0:13:03.600 watched eight documentary CBD Nation and talked about UM, the 0:13:03.600 --> 0:13:09.360 fact that certain strains can shrink tumors, fight Alzheimer's. UM 0:13:09.360 --> 0:13:11.360 do all these amazing things, but you've got to have 0:13:11.440 --> 0:13:15.320 the right ratio of THHC to cb D as well 0:13:15.360 --> 0:13:19.360 as the right turpenes um and it gets so difficult. 0:13:19.440 --> 0:13:22.440 How do you do that? Yeah, well we think that 0:13:22.480 --> 0:13:26.320 obviously communication through brand is uh, you know where the 0:13:26.360 --> 0:13:30.040 future of cannabis and certainly something that we're very focused on. UM. 0:13:30.080 --> 0:13:32.880 You're speaking about, you know, both ratio in terms of 0:13:33.200 --> 0:13:36.400 different CANNABINALT components of products. There's a lot of work 0:13:36.480 --> 0:13:37.880 and we're doing a lot of work right now on 0:13:37.960 --> 0:13:41.520 the R and D space around UM, you know, formulations 0:13:41.520 --> 0:13:45.040 of specific products to address specific concerns. But really it 0:13:45.120 --> 0:13:48.560 comes down to you know, basic brand building and basic 0:13:48.679 --> 0:13:53.920 basic communication and matching brands UM with needs skates across 0:13:54.000 --> 0:13:57.280 markets at the correct value propositions. So UM, you know, 0:13:57.360 --> 0:14:00.400 certainly there's exciting work that's going on in the annabis 0:14:00.400 --> 0:14:02.640 arena UM and we're we're friend and center in that 0:14:02.720 --> 0:14:06.320 work across That's just what we're doing in our eleven markets. 0:14:06.360 --> 0:14:09.000 So what are the brands UM out there. I'm not 0:14:09.040 --> 0:14:11.600 as familiar with the flower as I am with the edibles, 0:14:11.640 --> 0:14:14.920 but you've got conna Um, You've got plus you've got 0:14:15.040 --> 0:14:18.199 Kiva that are big players. What brands are you are 0:14:18.240 --> 0:14:22.160 you running? Yeah? So I mean on the edible front, right, 0:14:22.160 --> 0:14:24.240 we have we have see Talk that we run in house. 0:14:24.320 --> 0:14:27.920 We launched that that suite of products UM earlier this 0:14:28.000 --> 0:14:31.680 year across UM again across our home markets. We also 0:14:31.760 --> 0:14:35.480 have a brand partnership with with Banging in the edible space. Uh. 0:14:35.640 --> 0:14:38.000 When we look at our wellness, health and wellness brands, 0:14:38.080 --> 0:14:42.000 we have Momenta Ethanson who is the Survivor winner and 0:14:42.040 --> 0:14:45.360 just completed the Boston Marathon as a brand ambassador for US. Uh. 0:14:45.400 --> 0:14:48.400 He actually completed the Boston Marathon utilizing our products as 0:14:48.400 --> 0:14:51.120 part of his regimen. Uh, so that was very exciting. 0:14:51.720 --> 0:14:54.360 We have, certainly on the flower side, our premium flower 0:14:54.440 --> 0:14:58.160 Strange Streams are cult of our collection which have to 0:14:58.200 --> 0:15:02.360 your point communicated benefits of higher level PC but also 0:15:02.440 --> 0:15:05.800 a higher level of turpene and flavonoid profiles which have 0:15:05.920 --> 0:15:09.400 been very very well adopted in our markets. So again 0:15:09.440 --> 0:15:12.800 it's important to have brands across segments. Muses our our 0:15:12.840 --> 0:15:16.560 concentrate line again for folks who who are are concentrate 0:15:16.680 --> 0:15:20.400 users UM and you know it's UM. We've got also 0:15:20.440 --> 0:15:23.160 a partner with Blue River, which is a solventless company 0:15:23.520 --> 0:15:26.640 who's doing some exciting work on the solventless side of things. 0:15:26.760 --> 0:15:29.120 But um, really I would stay going back to edibles. 0:15:29.160 --> 0:15:30.960 One of the things that we've really been focused on 0:15:31.040 --> 0:15:34.160 in edibles is not only, of course, great tasting products 0:15:34.280 --> 0:15:38.480 UM that are consistent, but also adding in additional nanoformulations 0:15:38.640 --> 0:15:42.400 fast act. Yeah. Act. That's the key, Paul, because you 0:15:42.400 --> 0:15:44.320 don't want to you don't want to take an edible 0:15:44.440 --> 0:15:47.280 and think, like a half hour later, this isn't working. 0:15:47.480 --> 0:15:50.760 Then you eat another one only to realize that was 0:15:50.800 --> 0:15:54.560 too much. Right, So the key this nanotechnology. So what's 0:15:54.560 --> 0:15:57.280 the key again, I'm ready. There's a nanotechnology that helps 0:15:57.280 --> 0:15:59.680 it helps you get hit, get get the hit of 0:15:59.720 --> 0:16:02.520 its master so that you know, you know how your 0:16:02.520 --> 0:16:07.800 dose should be exactly. Hey Kim, where are we with 0:16:08.080 --> 0:16:13.000 kind of the state by state cannabis legislation? How broad 0:16:13.080 --> 0:16:19.440 is this? Like? How many states can cannabis be recreational sold? Uh? So, 0:16:19.560 --> 0:16:24.080 I mean currently recreational cannabis UM is available UM in 0:16:24.360 --> 0:16:26.440 you know, less than half of the states, but that's 0:16:26.440 --> 0:16:29.360 certainly increasing and we expect to increase that to increase 0:16:29.400 --> 0:16:32.440 over time. We've got large parts of the country, particularly 0:16:32.480 --> 0:16:35.080 in the southeast, and then uh, you know, the the 0:16:35.160 --> 0:16:38.240 central part of the country that have yet to adopt 0:16:38.320 --> 0:16:42.080 medical programs. Um. So you know, typical lifecycle of cannabis 0:16:42.120 --> 0:16:45.000 adoption and the state is to lead with a medical 0:16:45.040 --> 0:16:49.000 program that oftentimes is restrictive on the front side and 0:16:49.000 --> 0:16:52.640 then develops over time into a more lenient and then 0:16:52.680 --> 0:16:55.640 finally an adult use market. And certainly that's the pattern 0:16:55.680 --> 0:16:59.760 that we've seen. Yeah, across it's all going there. It's 0:16:59.800 --> 0:17:01.840 just it's a matter of time. Where are you on 0:17:01.880 --> 0:17:04.800 the Sativa versus Indica debate, because well, we've got to 0:17:04.800 --> 0:17:07.160 define that, Okay. So there's a lot of people who 0:17:07.760 --> 0:17:11.080 swear by sativa versus Indica, saying the former gives you 0:17:11.080 --> 0:17:13.680 like a nice head buzz, it'll get you energetic, maybe 0:17:13.680 --> 0:17:15.919 a little pressure behind the eyes, but you can be 0:17:15.960 --> 0:17:19.280 really creative and get things done, whereas indica is like 0:17:19.320 --> 0:17:23.040 a couch high. It's a body high. It'll help you sleep, 0:17:23.240 --> 0:17:27.000 you know. Um. But then some people say that differentiator 0:17:27.040 --> 0:17:32.080 isn't necessarily reliable. What do you think, Kim, Well, I mean, 0:17:32.080 --> 0:17:34.320 I think and again it all comes down to the 0:17:34.400 --> 0:17:37.159 science and and really I mean the science and indicate 0:17:37.240 --> 0:17:40.440 sitiva are are labels that that have developed over time 0:17:40.480 --> 0:17:45.520 as just a simplified indicator on how certain strings typically 0:17:45.600 --> 0:17:48.119 affect folks. UM. But really it does come down to 0:17:48.600 --> 0:17:51.960 UM again the terp turpine profile UM and in the 0:17:52.000 --> 0:17:55.040 genetics of that particular plant UM, which again is why 0:17:55.080 --> 0:17:58.280 we think there is such an opportunity for clear communication 0:17:58.840 --> 0:18:01.359 UM in branding in this in the space. So you know, 0:18:01.400 --> 0:18:03.480 I think that looks to tiva indica serve as a 0:18:03.600 --> 0:18:06.679 as a you know, a decent indicator so that folks 0:18:06.680 --> 0:18:09.600 can make at least an informed UM informed decision, but 0:18:10.040 --> 0:18:12.439 really as just like just like with wine or with 0:18:12.480 --> 0:18:16.439 other other products, that folks become more sophisticated. We find 0:18:16.480 --> 0:18:18.600 that UM, you know, instead of just focusing on those 0:18:18.680 --> 0:18:22.720 labels UH there instead you know, gravitating more towards understanding 0:18:22.720 --> 0:18:26.480 what the underlying UM, you know, components of that particular product, 0:18:26.560 --> 0:18:29.040 all about the turps. I think that's the key, you know, 0:18:29.080 --> 0:18:31.600 and the science there's still a long way to go 0:18:32.040 --> 0:18:35.480 in terms of identifying the turpins and figuring out what 0:18:35.520 --> 0:18:40.920 they do, UM, what mixtures UH result in in which affects. 0:18:40.920 --> 0:18:44.640 I think it's just so fascinating UM you're the extra. 0:18:44.720 --> 0:18:49.439 I'm learning him. Are you high right right now? No? 0:18:49.640 --> 0:18:53.280 I just said earning, so m my my, now I am. 0:18:53.359 --> 0:18:55.320 I have been if you can tell my throat I have. 0:18:55.640 --> 0:18:58.280 I have been kind of pounding some uh let's see 0:18:58.280 --> 0:19:01.720 throat coat tea and some big cuill over here. But 0:19:02.040 --> 0:19:04.959 sometimes if you're congested, maybe just a little bit of 0:19:05.720 --> 0:19:08.520 you know, just just one little hit can can dry 0:19:08.600 --> 0:19:10.640 you up right away, right away. All right, Kim Rivers, 0:19:10.680 --> 0:19:12.680 thank you so much for joining us. Kim Rivers chair 0:19:12.680 --> 0:19:15.000 and CEO of Truly It is a publican trade stock. 0:19:15.280 --> 0:19:23.159 T c n n F is the ticker. Ed Ludlow 0:19:23.200 --> 0:19:26.560 is also in San Francisco, UM and he is basically 0:19:26.640 --> 0:19:32.040 our kind of evies reporter rocket ships. He's the rocket guy. UM. 0:19:32.080 --> 0:19:34.560 He really covers all the Silicon Valley like tech stuff. 0:19:34.920 --> 0:19:39.119 And what about weed? Do you ever indulge? I do 0:19:39.240 --> 0:19:44.199 not cover that industry and I do not indulge, but 0:19:45.440 --> 0:19:48.359 in California many people do. And that's do we have 0:19:48.400 --> 0:19:50.760 a dedicated before we get to riving, because that's why 0:19:50.800 --> 0:19:53.479 do we have a dedicated weed reporter. We do. Tiffany 0:19:53.520 --> 0:19:56.080 Carry and I really recommend you follow her on Twitter 0:19:56.119 --> 0:19:58.320 and on the Bloomberg terminal for all of her reporting. 0:19:58.480 --> 0:20:00.800 All right, I'm in let's get to Ribbyan right now, 0:20:00.840 --> 0:20:04.680 because um, I was not only UM was I reading 0:20:04.720 --> 0:20:08.600 the stories yesterday and following very closely, especially because I'm 0:20:08.640 --> 0:20:12.600 sure you saw that Folkswagen is bringing back the International Scout. Yes, 0:20:12.960 --> 0:20:14.880 and it looks a heck of a lot like a Ribban. 0:20:16.200 --> 0:20:18.760 It kind of does, isn't it. Yeah, And it's electric. 0:20:18.840 --> 0:20:21.480 It'll be a direct competitor UM to that, and the 0:20:21.520 --> 0:20:25.080 Bronco went for it. Finally electrifies the Bronco. Why didn't 0:20:25.080 --> 0:20:27.520 bring that one out electric first? I'll never understand. But 0:20:28.200 --> 0:20:30.720 Ribbyan did pretty well. And I saw an analyst quote 0:20:30.880 --> 0:20:33.080 UM at a Wells Fargo calm Lange, and I thought 0:20:33.080 --> 0:20:36.000 was really good. He said, no, bad news is sometimes 0:20:36.040 --> 0:20:41.440 good news. Yeah. I mean, that's basically the perfect sum 0:20:41.480 --> 0:20:44.840 of the earnings that nothing really happened. You know. They 0:20:44.880 --> 0:20:48.720 reaffirmed guidance for the year they'll build twenty five thousand evs. 0:20:48.760 --> 0:20:51.880 That was already essentially a cut forecast of the year 0:20:51.960 --> 0:20:55.679 because the factory on paper was capable of doing fifty 0:20:55.760 --> 0:21:00.840 thousand this year and supply chain problems part shortages. Um, 0:21:00.880 --> 0:21:04.520 But you know this is a company that's fledgling. Right. 0:21:05.240 --> 0:21:08.160 We've been so caught up in the equity story where 0:21:08.160 --> 0:21:10.399 the stocks fallen from a hundred and seventy two dollars 0:21:10.400 --> 0:21:12.560 a share in November following the I p O to 0:21:12.720 --> 0:21:16.199 around dollars a share that we forget. It's just a 0:21:16.200 --> 0:21:19.320 fledgling company trying to get off the ground. So it 0:21:19.440 --> 0:21:22.359 is is there still again judging by the start press 0:21:22.359 --> 0:21:25.880 you just mentioned here, we're down sev year to date, right, 0:21:25.920 --> 0:21:27.880 I guess there's real concern about it. This is an 0:21:27.880 --> 0:21:32.000 ongoing concern whether they can actually make enough cars to 0:21:32.040 --> 0:21:35.680 turn a profit. We've we've really been debating this um 0:21:35.720 --> 0:21:39.000 in the team today because not all EV makers or 0:21:39.040 --> 0:21:41.560 would be ey makers are equal, right, you know, Rivian, 0:21:41.880 --> 0:21:45.119 I've been inside the factory. It's real. You know, they 0:21:45.359 --> 0:21:49.840 produced around twenty vehicles in the quarter. They've built five 0:21:49.920 --> 0:21:54.800 thousand of them since starting production in September. They are 0:21:54.880 --> 0:21:59.119