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Speaker 2: This is a.
Speaker 3: Joy And for Global Wall Street lean forward.
Speaker 4: Stuart Kaiser joins us in NIC's got a fancy title,
Speaker 4: had a US equity trading strategy.
Speaker 3: It's City Group.
Speaker 4: You've seen him in the TV show Industry and we've
Speaker 4: got in here for a long conversation today. What's the
Speaker 4: mood on institutional desks? Our review is retails buying on
Speaker 4: the dip and institutions are going mental over this, that
Speaker 4: and the other thing. What's the mood that you see
Speaker 4: across pro desks.
Speaker 5: I think people are a little bit concerned about the
Speaker 5: speed of the rally, But the fact is it seems
Speaker 5: like stamatic buying is really going to be very large
Speaker 5: over the next couple of weeks up and people are
Speaker 5: not going to fight that. So I think even if
Speaker 5: you're a little negative of the market as an institutional investor,
Speaker 5: you're sort of allowing this buying to play out and
Speaker 5: then you'll kind of step back in, you know, once
Speaker 5: that's done. So I would say, you know, a little
Speaker 5: bit concerned with the speed, but you know, okay, for
Speaker 5: now what we call long.
Speaker 4: Only buy side, which is basically conservative money. Folks are
Speaker 4: not doing hedge funds and all the fancy things you
Speaker 4: see on industry or billions.
Speaker 3: Forget about that long only by side. Do they feel
Speaker 3: behind right now?
Speaker 2: You know, I think a little bit.
Speaker 5: But the fact is the sell off happened so quick
Speaker 5: and then the rally happened so quick back that you know,
Speaker 5: it was a little hard to capture the rally, but
Speaker 5: it was also a little hard to risk matters the
Speaker 5: way down. So I think they're actually just pretty happy
Speaker 5: we've got the price levels back back to where it was.
Speaker 2: If you look at your so they.
Speaker 3: Were dumb going down and dumb going up. I love it. Well.
Speaker 5: I prefer the word patient, patient and strategic. But but yeah,
Speaker 5: I mean, like you'd give you an example. You know,
Speaker 5: we had a lot of investors coming in when you
Speaker 5: were on the lows. What are the ten or fifteen
Speaker 5: stocks you would buy here. By the time they would
Speaker 5: have put that trade on, we're already ten percent higher.
Speaker 5: You know, we kind of made a joke last weekend
Speaker 5: that whole seventeen percent rally, if you timed it perfect,
Speaker 5: you only needed to own the market for sixty minutes.
Speaker 3: Slow stop. Show you work on the weekends sometimes yeah,
Speaker 3: sometimes this is just.
Speaker 4: Because Jane's in a commute right now and you work.
Speaker 5: I have to catch up on all your YouTube, all
Speaker 5: your YouTube, and I can't go during the week.
Speaker 6: Sectors, sir, what do you guys see on your desk?
Speaker 6: Are people just kind of are they jumping back into tech?
Speaker 6: Are they just trying to buy good balance sheets? What
Speaker 6: are they buying out there when they did come back?
Speaker 5: Yeah, I mean tech and growth I think have been
Speaker 5: the stocks that have driven the rally the most. Two
Speaker 5: things that would just highlight institutional investors two themes that
Speaker 5: they liked earlier in the year that they got hurt
Speaker 5: on but now are re engaging in, would be power generation.
Speaker 5: So all that power that we need for AI and
Speaker 5: M and A targets. You know, coming into the year,
Speaker 5: we had thought we were going to get this big
Speaker 5: M and A cycle, all the tariff news, all the
Speaker 5: market volatility, you know, delayed that I think people are
Speaker 5: hoping now that things stabilized, that we will get a
Speaker 5: little bit of an M and A cycle, and that's
Speaker 5: going to be good for the bank sector. So I
Speaker 5: think those are two areas growth and banks that are
Speaker 5: People were focused on healthcare has been real tricky, so
Speaker 5: I think.
Speaker 2: People are kind of staying away from that.
Speaker 5: A big OPEC meeting you know today, I think it
Speaker 5: is so you'll have some focus on energy. But I
Speaker 5: think to the longside it's been growth stocks, particularly tech,
Speaker 5: and then some.
Speaker 2: Re entry into the bank space.
Speaker 7: We had Gena Martin Adams on earlier.
Speaker 6: She's a US equity strategist for Bloomberg Intelligence, and she
Speaker 6: was saying, this non US trade into Europe and other
Speaker 6: non ghost markets that's still there.
Speaker 7: It's still playing.
Speaker 6: Are you still having those conversations with your clients that
Speaker 6: they want to own maybe some European stocks.
Speaker 5: We're still having the conversations. I think the fact that
Speaker 5: you know, we've backed off the worst of the tariff
Speaker 5: outcomes has made people a little more comfortable.
Speaker 2: Kind of being in the US.
Speaker 5: But yeah, I mean the Europe versus US trade, particularly
Speaker 5: when you got that fiscal announcement. Yeah, I think the
Speaker 5: view is it's a very high bar to get the
Speaker 5: Europeans to spend money. The fact that they were committed
Speaker 5: to do that gets real money in the US a
Speaker 5: little more comfortable owning Europe, and I think it's given
Speaker 5: it another leg there. The fact is, though you've not
Speaker 5: seen an extended period of Europe beating the US probably
Speaker 5: for about twenty years, so there is you know, I
Speaker 5: think people like the trade, but they're also they respect
Speaker 5: that and are a little bit you know, cautious about how.
Speaker 2: Long it might might keep going.
Speaker 4: They got to relearn the stock symbols Steward Kaiser with
Speaker 4: us on your commute across an issue. Good morning, particularly
Speaker 4: good morning and Android Ota Google. Did you see they
Speaker 4: did their their roadshow.
Speaker 3: Thing yesterday big heys like big, It was bigger.
Speaker 7: Than I thought.
Speaker 3: I got to actually like read about it, like they
Speaker 3: get up to Gemini.
Speaker 4: Yes, Gemini and all that. Anyways, good morning on your community.
Speaker 4: Good morning on YouTube as well, Thank you YouTube. When
Speaker 4: we put this together, like as a huge deal, should
Speaker 4: we have makeup or not make up? It was like
Speaker 4: a major debate, folks. Matteo had a tantrum where people
Speaker 4: came in and they said, look, I'm endorsed by Bobby
Speaker 4: Brown and Mac I gotta have the makeup.
Speaker 3: Going, so Lisa's the only one that beautifies here, and so.
Speaker 4: To have Steve Roach on the phone looking over Steve,
Speaker 4: the camera's over there.
Speaker 3: But that's the way we're rolling on YouTube.
Speaker 4: Stewart Keiser without makeup this morning, I want you to
Speaker 4: talk about MAG seven.
Speaker 3: In position sizing.
Speaker 4: What do your big clients, what do they do when
Speaker 4: they go h I think we need more Apple just
Speaker 4: as one example, how.
Speaker 3: Do you affect position sizing in MAG seven?
Speaker 2: Look at Tom. It's a great question because at the
Speaker 2: beginning of the year, the.
Speaker 5: Two biggest challenges to the MAG seven trade were valuation
Speaker 5: and positioning. From mid February till March, those two things
Speaker 5: got addressed pretty quickly. Valuation down twenty five percent, positioning,
Speaker 5: you know, kind of pulled off. I think what we've seen, frankly,
Speaker 5: is a lot of people in that AI trade kind
Speaker 5: of sizing up a little more on the software side,
Speaker 5: a little a little less on the Microsoft on a tear. Yeah,
Speaker 5: Microsoft Meta, you know, has obviously been a favorite in
Speaker 5: terms of sizing the other stuff. Honestly, the what those
Speaker 5: we've seen recently have been almost across the board. Like
Speaker 5: you know, I'm going to trade Max SEV and maybe
Speaker 5: I pulled Tesla out because Tesla's had a little bit
Speaker 5: bit of political risk. But I'm going to pretty much
Speaker 5: put a dollar or ten million dollars in each of
Speaker 5: those stocks on generally.
Speaker 3: So for you is ten million dollars for.
Speaker 2: Me personally, No, what I love for me is about
Speaker 2: fifty fifty dollars.
Speaker 3: The City group An is a ten ten million give
Speaker 3: it to the intern to trade.
Speaker 5: Yeah, I mean, look, these stocks are I mean you're
Speaker 5: talking three trillion dollars in market cap for some of
Speaker 5: these stocks, So you know, the notional sizes going through
Speaker 5: or are quite large.
Speaker 2: I think you're generally approximately equal weight.
Speaker 5: But going into each quarter, there's always one or two
Speaker 5: that are favorites that are a little more widely held,
Speaker 5: and a couple that are less liked. And again, I
Speaker 5: think the software side of that Ledger is a little
Speaker 5: more little more over owned right now, and perhaps the
Speaker 5: tech hardware and send me is a little less owned
Speaker 5: at the moment.
Speaker 6: What's going to drive this market for the remainder of
Speaker 6: the year. I'm looking at the WORP function and I
Speaker 6: think I've only got a couple of fit cuts.
Speaker 7: Maybe in the forecast, is it earnings?
Speaker 6: Is it just what comes out of washing in DC
Speaker 6: and what comes over X or Twitter or whatever it's called.
Speaker 7: Is that what drives the market today?
Speaker 5: Look, I think near term, like the next month or so,
Speaker 5: it's a lot about positioning, and now that you had
Speaker 5: that Moody's downgrade, it's going to be what happens in
Speaker 5: the long end of the bond curve. As you guys
Speaker 5: were chatting about earlier, you know, medium term, what's called
Speaker 5: that July through September, it's going to really all be
Speaker 5: to me about EPs and GDP growth. Okay, both the
Speaker 5: FED and Corporate America took a weight and see approach
Speaker 5: in the first quarter. I don't think that's going to
Speaker 5: be sustainable through the summer. So we're ultimately either going
Speaker 5: to see relief and the recession risk get priced out,
Speaker 5: or we're going to see EPs and GDP numbers come down,
Speaker 5: and that's going to be kind of a waiting on
Speaker 5: the market. So I think, frankly, let's call it July
Speaker 5: through September, through the September FED, this is really going
Speaker 5: to be about the growth outlook.
Speaker 6: It seems like I mean Erning's growth. I don't know
Speaker 6: what Scott Crohner's saying, but I mean we've got Erning's
Speaker 6: growth was like thirteen fourteen fifteen percent for this year.
Speaker 6: Now it's down to like seven. Is that Is there
Speaker 6: still risk in earning?
Speaker 7: Strewth Do you think?
Speaker 5: I think there is still risk? I mean, you know,
Speaker 5: Scott was a two seventy for the year. He took
Speaker 5: his number down of two fifty five. That number does
Speaker 5: not include a recession. So the downside risk from here
Speaker 5: is less tariffs.
Speaker 2: Because I think we've trimmed the tail.
Speaker 5: Risk off tariffs and it's more about what is happening
Speaker 5: to the economy. So I do think there is a
Speaker 5: bit more downside to earnings, but it's going to be
Speaker 5: relying on economic data. I think most people at this
Speaker 5: point have incorporated some degree of tariff hadwin.
Speaker 3: So do institutions call you up.
Speaker 4: It's like industry and they gotta go to break and
Speaker 4: get to the next season. Do people call up and
Speaker 4: say go to cash at that size and scale?
Speaker 5: People don't do that, right, I mean, look, it depends
Speaker 5: like a mutual if on long only can't really be
Speaker 5: in cash right regulatory wise, they can't be you know
Speaker 5: hedge funds, Yes, I mean hedge funds will go cash.
Speaker 3: Up and say clear out these four positions? Yeah, or
Speaker 3: how do you do that?
Speaker 2: We just we push a button. These days, I think
Speaker 2: no man like I think. I think.
Speaker 5: What's interesting, Tommy, you're raising you entry point is the
Speaker 5: selling that we saw earlier in the year was much
Speaker 5: more what we call low touch, going through the pipes,
Speaker 5: going through the computers, going through the algorithms. We haven't
Speaker 5: had those days where they are calling up our high.
Speaker 2: Touch sales desk and just saying get me out quick.
Speaker 2: And I think part of the.
Speaker 5: Reason for that is something you touched on earlier. People
Speaker 5: are so long these stocks that if you're trimming up
Speaker 5: your positions, you need to do it quite quietly, if
Speaker 5: that makes sense.
Speaker 3: I'm not going to mention the name here. The name
Speaker 3: doesn't matter.
Speaker 4: Folks in the Bloomberg you can't believe the information you've
Speaker 4: got when you get the terminal. Get the terminal, folks,
Speaker 4: you need your card. So I got a very famous
Speaker 4: regional American name. They own seven point one six three,
Speaker 4: six seven nine Microsoft shares. So when they call up
Speaker 4: and say sell a ten percent position seven hundred and
Speaker 4: seventeen thousand shares. How do you actually do that? Do
Speaker 4: you just put in a cell order for seven hundreds?
Speaker 4: You don't do that, right?
Speaker 5: No, I mean a lot of that is done, you know,
Speaker 5: gradually throughout the day, the day on evaluated probably unless
Speaker 5: it is a we have to get out and look.
Speaker 5: What I would say too, is that the retail participation
Speaker 5: in the market is much larger today than it was
Speaker 5: a few years ago. So actually, if you're an institutional
Speaker 5: investor selling stock in retail, you're selling to a c
Speaker 5: LEBRITYTF you're selling to retail the men. Again, you're not
Speaker 5: just dumping it at one block. You're taking your time,
Speaker 5: you're spreading it out over the day, and you're making
Speaker 5: it work.
Speaker 3: Jane calls in.
Speaker 4: Good Jane, thank you so much for calling in from Connecticut.
Speaker 4: If you sell four percent of it's seven hundred and
Speaker 4: seventeen thousand.
Speaker 3: And you have to wait twenty minutes, what do you
Speaker 3: do in the meantime?
Speaker 2: You get coffee?
Speaker 3: You get coffee.
Speaker 4: I thought, that's how well, if it's here four o'clock,
Speaker 4: it's like, where are we going to have a beverage?
Speaker 6: Exactly, So, doing that selloff, we saw earlier, Earlier in
Speaker 6: the year, we had some really you know, maybe a
Speaker 6: five or six day period. It wasn't panic selling. Everybody said,
Speaker 6: it was kind of orderly selling. What were the calls
Speaker 6: you're getting from your clients. Was it the get me
Speaker 6: out call or was it, hey, we're.
Speaker 7: Taking some risk off the table kind of call.
Speaker 2: I think it was more of the latter.
Speaker 5: As you said, it wasn't a discombobulated and aggressive sell off.
Speaker 5: I think people were pretty measured about it. As I mentioned,
Speaker 5: a lot of that was going through the computers, going
Speaker 5: through the algos, less you know, just calling us up
Speaker 5: and saying sort of get me out now. Obviously there
Speaker 5: were some of that, but no, it was a pretty
Speaker 5: orderly self. But if you think of the sell if
Speaker 5: it happened in two stages, right, you had about a
Speaker 5: ten percent draw down to la February, and then you
Speaker 5: had another you don't post the tariff announcement. The first
Speaker 5: of those ten percent pullbacks was a little bit more disorderly,
Speaker 5: a little.
Speaker 2: Bit more stressed.
Speaker 5: Once you got that initial pullback, a lot of institutional
Speaker 5: investors got their risk right sized, and when you had
Speaker 5: that second pullback, I think.
Speaker 2: People were much more prepared for it.
Speaker 3: If it makes sense, this is brilliant.
Speaker 4: I did not observe, and folks, I'm making it up
Speaker 4: by by no means have my thumb on the market,
Speaker 4: not that I ever did. But I didn't see Catharsis
Speaker 4: there in the big cardit on follow, folks, because the
Speaker 4: drift of bitcoin.
Speaker 3: Is a fiction. But in your world, Steward Kaiser, I
Speaker 3: didn't see panic. I didn't see Catharsis.
Speaker 5: Look at and top to your point, I mean you
Speaker 5: basically Liberation Day was April second. The market bottomed on
Speaker 5: April seventh, intra day, and on April eighth, on a
Speaker 5: close to close. It was really a three day, three
Speaker 5: to five day sel if it didn't feel like that,
Speaker 5: but you know that's what the price actually would tell you.
Speaker 5: So look, you had a few moments there where you
Speaker 5: got the vix up to fifty sixty, and I think
Speaker 5: that was the closest we got to kind of you
Speaker 5: know compure, you know, complete fear based selling. You know,
Speaker 5: the fact is one of a good good proxy for
Speaker 5: today I think is actually twenty eleven in the sense
Speaker 5: that it was sort of a self created selloff driven
Speaker 5: by government policy, and you know, the second the administration
Speaker 5: started to show that they were willing to negotiate and
Speaker 5: trim the tail rists off.
Speaker 2: I think people got much more comfortable that this isn't
Speaker 2: great risk reward.
Speaker 5: But this is not, you know, a COVID or financial
Speaker 5: financial crisis quickly.
Speaker 4: Or season four. Harry Lotty's not going to be back
Speaker 4: for industry. Are you going to be back for industry
Speaker 4: for season four?
Speaker 3: Shortly?
Speaker 2: Up to the agents, Tom, you know we have to.
Speaker 4: Yeah, Cia, I understand. Stuart Kaiser on the street. I
Speaker 4: can't say enough, folks, a joy of Stuart. He's not
Speaker 4: coming in going well, the Fed will do this. It
Speaker 4: It's like real talk.
Speaker 6: And I reach Stuart's note every day because if I
Speaker 6: only have time for one paragraph, I got it.
Speaker 7: I can sound smart. What's buying, what's selling?
Speaker 2: I got it?
Speaker 3: Treasure from Citigroup. Stuart Kaiser, thank you so much, Jane,
Speaker 3: be nice to him. I'm sorry.
Speaker 1: You're listening to the Bloomberg Surveillance Podcast. Catch us live
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Speaker 4: Joining us now for an extended important conversation here on
Speaker 4: your conviction to be in the equity markets. Brian Belski's
Speaker 4: chief investment strategist for PMO Capital Markets. I'm sorry, Brian,
Speaker 4: for me always and forever.
Speaker 3: The my truh gosh, Brian.
Speaker 4: You know, Brandon want you to talk about what I've
Speaker 4: lived and a lot of younger people have never lived it.
Speaker 3: If price goes.
Speaker 4: Down and yields go up, stocks can still do well.
Speaker 8: Discuss that they can do very well. And thanks for
Speaker 8: mentioning Nick Rokanova too. First of all, one of the
Speaker 8: best names in Wall Street history, never one number two.
Speaker 9: The poor man has worked with me for eighteen years,
Speaker 9: so well, pray for him.
Speaker 8: I'm coming live to you, by the way, from the
Speaker 8: from the wonderful Jennifer Lee's office here at BEMO headquarters
Speaker 8: in Toronto. So I feel like I'm in the in
Speaker 8: the in the midst of greatness and anyway, yeah, exactly.
Speaker 8: So I really think we wrote this piece and talk
Speaker 8: about voluminous piece. Nick, lets me go crazy on the
Speaker 8: year Ahead piece. We wrote this piece in twenty twenty
Speaker 8: two for the twenty twenty three Year Ahead, and we
Speaker 8: talked to Tom about normalization in markets.
Speaker 9: Something we talked about last appearance as well, and you know,
Speaker 9: stocks can go up when.
Speaker 8: Yields go up. You know, the average ten year treasury
Speaker 8: the last seventy five years is five percent. Zero percent
Speaker 8: is not normal. What's happened in the FED since November
Speaker 8: of two thousand set, I'm sorry, August of two thousand
Speaker 8: and seven is not normal. And I think we're kind
Speaker 8: of returning to normalcy on the bond side of things.
Speaker 9: Even though we're primarily equity people, we believe the majority.
Speaker 8: Of returns, total returns of bonds the next ten years
Speaker 8: is going to be about yield, not price performance. Remember
Speaker 8: the last forty years, we've seen massive all performance of
Speaker 8: bonds for the most part, and we've had great price performance.
Speaker 8: So I think Tom that we're entering into this period
Speaker 8: where more even returns for stocks high single digit, low
Speaker 8: double digit.
Speaker 9: Same thing with Ernie's growth, where a yield environment can
Speaker 9: that can kind of hover in this three fifty to
Speaker 9: four to fifty range predominantly.
Speaker 6: So you know, even though you maintain and rightfully so, Brian,
Speaker 6: your bullish stance here and it's been an amazing rebound
Speaker 6: in this market, here, still your EPs for the s
Speaker 6: and p five hundred still around two hundred and fifty bucks.
Speaker 6: Does that support higher stocks from here?
Speaker 9: It does, and we're in the bottom of the report.
Speaker 8: Paul, we talked about how we're not revising back to
Speaker 8: our sixty seven hundred target, which was officially our initial
Speaker 8: target for twenty twenty five. It still remains our bow
Speaker 8: case at two seventy five for earnings and sixty seven hundred.
Speaker 9: For the price.
Speaker 8: However, as we wrote the piece, we need to see
Speaker 8: some sign posts, quite frankly, and one of them, quite frankly,
Speaker 8: to be clear, is we need to see guidance come back,
Speaker 8: and we need to see earnings growth solidify, and so
Speaker 8: we think we're going to probably see that. So with
Speaker 8: the market we call it, we're transitioning to show me
Speaker 8: from scare me, and I think the next quarter or two,
Speaker 8: which is a long time in Wall Street Brothers a
Speaker 8: long time, the next quarter or two, I think we
Speaker 8: need to see earning growth come in and then we'll
Speaker 8: feel better about returning to our boal caase at sixty
Speaker 8: seven hundred.
Speaker 6: To get to it, you know, a sixty seven hundred target.
Speaker 6: Does tech have to be a leadership category?
Speaker 8: Brian, that's a great question. Yes and no, we don't
Speaker 8: think MEG seven needs to be leadership.
Speaker 9: MAKES seven is all about liquidity.
Speaker 8: You know, Tom and I talk about the nineties and
Speaker 8: these these stocks are the new consumer staple sacks. As
Speaker 8: we talked about these big cap, these megacap tech stocks.
Speaker 8: We're technically underweight the MACS seven because we own zero
Speaker 8: a Meta in our eleven billion dollars that we run
Speaker 8: for BEMO. But I think it's going to come from
Speaker 8: other areas of tech, whether or not it's bottom fishing
Speaker 8: and AMD or the great fundamental story of Pallenteer or
Speaker 8: buying the dip in Palo Alto today, which the major
Speaker 8: theme of AI we think going forward is cybersecurity. It's
Speaker 8: maybe moving down in cap to a cyber arc with
Speaker 8: respect to cyber secure already and even Oracle. Oracle's not
Speaker 8: in the MAKE seven, but we're talking about a multi
Speaker 8: billion dollar company with a fantastic balance sheet and a
Speaker 8: great software company. So I think it's going to be
Speaker 8: other areas and tech call that I'll perform, and that's
Speaker 8: why we continue to be all perform or overweight.
Speaker 9: I'm sorry with respect to the technology sector.
Speaker 6: So, Brian, it seems like again the volatility that we've
Speaker 6: seen here in you know, the first five months or
Speaker 6: so of the years, really come out of Washington, DC
Speaker 6: with economic policy, trade policy just kind of bringing in
Speaker 6: level of certainty to the markets. I'm not sure that's
Speaker 6: going to necessarily change going forward. How do you kind
Speaker 6: of come to grips with what is still going to
Speaker 6: be a higher tiriff environment out there?
Speaker 8: Right That's one of the points that we make in
Speaker 8: terms of our sign posts. Markets have to stop reacting
Speaker 8: to every little thing out of walls, arms, storry Washington,
Speaker 8: whether or it's good, bad, or indifferent. And once we
Speaker 8: kind of get back to quote unquote business and normalcy,
Speaker 8: I think we'll feel better about the bull market, which
Speaker 8: we remember we're still big, giant, secular twenty five year
Speaker 8: bull market. But again, given this uncertainty, I think too
Speaker 8: many people are trying to make the big call and
Speaker 8: go right back up to seven thousand on the market
Speaker 8: with the market needs some work to do.
Speaker 9: It doesn't mean we're not bullish, we need to see
Speaker 9: some fundamental work.
Speaker 4: Brian Belsk in the excess where I live, folks, he's
Speaker 4: with BMO Capital Markets.
Speaker 6: Hey, Brian, I'm looking at what we haven't talked about
Speaker 6: a lot really this year, with all the talk on terrafs,
Speaker 6: we haven't talked about the Federal reserve and interest rate
Speaker 6: policy here. Do we need the Fed to be accommodative
Speaker 6: here for this market to work?
Speaker 9: I don't think so. And I think that's really the
Speaker 9: secret sauce there, Paul.
Speaker 8: I mean, I think at the end of the day,
Speaker 8: the end of quantitative tightening, rates are still low relative
Speaker 8: to history, the SET has a dual mandate. Employment remains
Speaker 8: very strong. Remember, employment is the leggingest of all indicators,
Speaker 8: that always happens last. And then on the inflation Sideys
Speaker 8: you're talking about SET. We'll see how PCE and all
Speaker 8: that kind of comes in going forward.
Speaker 9: But I think the Fed is done.
Speaker 8: I actually I'm one that says the Fed's actually done
Speaker 8: a pretty good job. And so I don't think that
Speaker 8: we don't need an interest rate cut for the markets
Speaker 8: to go up.
Speaker 6: What do we need in terms of I don't know,
Speaker 6: just from the companies themselves help. Do we need for
Speaker 6: these companies to step up and say we have better visibility,
Speaker 6: more visibility, any visibility on our earnings Because the first
Speaker 6: quarter was kind of characterized as a lot of companies, rightfully,
Speaker 6: So just saying we don't know what's going on out.
Speaker 8: There, right and that's part of our sign posts that
Speaker 8: we need to see guidance and earnings kind of growth
Speaker 8: numbers come back meaning to show me side of thanks, Paul,
Speaker 8: And I do think obviously first quarter the majority of
Speaker 8: earnings didn't have terre for related type of issues. But
Speaker 8: at the end of the day, we want to see
Speaker 8: companies that have strong operating results, that operate from the
Speaker 8: bottoms up bases very strongly, and have some guidance to say, hey,
Speaker 8: you know what tariffs, tariff's mariffs, We're still going to
Speaker 8: have very strong and steady earnings. And oh, by the way,
Speaker 8: you know what you get what you pay for, and
Speaker 8: you know what you're paying for in US stocks, And
Speaker 8: so I think that's going to be the theme for
Speaker 8: the second half of the year.
Speaker 3: Brian, have we ever seen retail and institutions so far? Apart?
Speaker 3: I mean I got retail buying the dip that's others
Speaker 3: to it. Belski's going to these.
Speaker 4: Florida, you know, Caribbean Island stock conventions. You know people
Speaker 4: are daytrading off their laptops. Why Bellski's given them pro tips.
Speaker 3: Okay, retail's all in. Brian institutions aren't. Has it ever
Speaker 3: been this.
Speaker 8: Nuts great question, it's been On the other side, I
Speaker 8: would say I remember having very complex and aggressive conversations
Speaker 8: with private wealth in March April of twenty twenty. Institutions
Speaker 8: were still late in getting out Tom, and I think
Speaker 8: also too, I go back also to October of two thousand,
Speaker 8: where retail was the opposite side. Retail was all in,
Speaker 8: completely all in, and you start to see the technology
Speaker 8: crack a little bit. In the US, foreign investors were
Speaker 8: still very, very aggressive. I quite frankly hate the notion
Speaker 8: of retail's dumb money and institutionals smart money.
Speaker 9: That's actually the opposite.
Speaker 8: It's actually the opposite, and I think that's part and
Speaker 8: parcel Tom quite frankly to what happened in the late nineties,
Speaker 8: because retail private wealth really learned their lesson to be
Speaker 8: two overexposing stocks and a wealth manager has done a
Speaker 8: wonderful job kind of diversifying.
Speaker 9: So I think that's the dumb money.
Speaker 8: It's actually the hedge funds and the short term money
Speaker 8: that's trying to change these momentum moves that Oh, by
Speaker 8: the way, they've been wrong.
Speaker 4: Is that because they have access to leverage. I mean,
Speaker 4: there was a white paper years ago. Sorry folks, I
Speaker 4: can't cite it that if you get out over two
Speaker 4: point eight to one or three to one leverage, things
Speaker 4: fall apart. I mean, it's just about institutions are leveraged up,
Speaker 4: and that's where they get into trouble.
Speaker 9: I think it's part leverage, quite frankly.
Speaker 8: But it also, I think too, is that institutions they
Speaker 8: owned too many stocks in these big portfolios and they
Speaker 8: haven't made the right bets. And I think that they're
Speaker 8: chasing momentum quite frankly, and there there's not a lot
Speaker 8: of independent thought. When I go on to talk to
Speaker 8: a bank institution, Tom and Paul and I start talking
Speaker 8: about stock picking, it's like their their eyes gloss over,
Speaker 8: because for the most part they're just kind of chasing
Speaker 8: the momentum. They don't really want to talk about operating
Speaker 8: performance and management and product and service. So I think
Speaker 8: that's kind of the rule we're in. And oh, by
Speaker 8: the way, retail I e. Private wealth, they love stories.
Speaker 8: They want to talk stories about stocks, and institutions forgot
Speaker 8: have kind of forgotten how to take stories.
Speaker 4: Really really, that's really really interesting. I'll have to have
Speaker 4: you back for that. I got one final question. Knicker Pacers.
Speaker 9: Next, come on with the Wolves choke last night.
Speaker 8: I want to see I want to see the cat
Speaker 8: taking on it's old their old team, the Wolves.
Speaker 9: So we got to get going.
Speaker 3: Brian Belski, thank you so much.
Speaker 4: Bemont Capital at Markets, Thank you, Nicholas rocking Over for writing.
Speaker 2: Everything else Elsey does.
Speaker 3: Of course, he's just he's writing around in a rolls. Nick,
Speaker 3: let's do something on this. Okay, we'll do that. Brian Belski,
Speaker 3: thank you so much. We'll get them back.
Speaker 4: That's a really important discussion, Paul about retail institution.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Applecarplay and Android Auto
Speaker 1: with the Bloomberg Business App. You can also listen live
Speaker 1: on Amazon Alexa from our flagship New York station, Just
Speaker 1: say Alexa play Bloomberg eleven thirty The Quick.
Speaker 3: Visit right now. He is at EO Law School.
Speaker 4: He invented Morgan Stanley Economic Stephen Rohatch joins us with
Speaker 4: his decades of study of China Stephen. I was reading
Speaker 4: Ken Rogoff last night, my book of the Summer Our
Speaker 4: Dollar Year Problem, and there's one page in the last
Speaker 4: chapter on China where he makes clear everything changed with
Speaker 4: President g the totalitarian sense of it, the inwards sense
Speaker 4: of it. It's the premier, the president and his buddies.
Speaker 4: Do we understand that in our negotiations with China, the
Speaker 4: unique character of this regime in Beijing.
Speaker 10: First of all, Tom, thank you for talking to me.
Speaker 10: Making your intro makes me sound a little bit like
Speaker 10: Thomas Edison. But with respect to Ken's point, I would
Speaker 10: respectfully disagree. China has been on a trajectory that has
Speaker 10: been pointing in this direction really since the late seventies
Speaker 10: and post Mao Dungshao Ping. China under Sijenping. Things have
Speaker 10: certainly crystallized much more around an authoritarian, single leader dominated system.
Speaker 10: But the trend of economic policy, state directed industrial policy,
Speaker 10: repressed consumption, an unbalanced Chinese economy increasingly at odds with
Speaker 10: the rest of the world. That has been evident for
Speaker 10: a long time prior to the ascendancy of Shijinping.
Speaker 6: So Steven, I mean there is a period there where
Speaker 6: China was really embracing the West and vice versa, and
Speaker 6: there's a lot of optimism for mutual growth.
Speaker 7: Are the people of China?
Speaker 6: Are they comfortable with where they are now and where
Speaker 6: President She is taking this economy.
Speaker 10: Look, I've written books about US China codependency, the relationship
Speaker 10: that was initially constructive from perspective of both countries relying
Speaker 10: on each other. And I think the people of China
Speaker 10: that I speak to and I still go there on
Speaker 10: a regular basis, would love nothing better than to go
Speaker 10: back to that comfortable codependency. But the leaders, the political
Speaker 10: leaders of both nations, and in the case of the US,
Speaker 10: I wouldn't just single out the president most importantly, I
Speaker 10: emphasized the US Congress don't see it that way anymore,
Speaker 10: and the Chinese people don't fully understand what has changed
Speaker 10: to alter that balance.
Speaker 4: Stephen Roach with us with you law school, we will
Speaker 4: continue here futures negative thirty three, doubt futures at negative
Speaker 4: three to thirty in the Vicks eighteen point five eight.
Speaker 4: Doctor Roach, I think that within your travels and you
Speaker 4: were in China, off.
Speaker 3: What have you observed, What's changed?
Speaker 4: What has changed in the modern China versus the years
Speaker 4: ago getting off the airplane and seeing that giant Morgan
Speaker 4: Stanley's sign at Hong Kong's airport.
Speaker 10: Well, first of all, the sign has gone, and.
Speaker 3: It so is the chief Economist.
Speaker 10: Yeah, that happened after I left Asia and came back.
Speaker 10: It would still be there if I was still in
Speaker 10: Hong Kong. But look, what's changed a lot is China's
Speaker 10: rise as a a superpower, driven largely by extraordinary progress
Speaker 10: in technology and what chi Jin Pink calls, you know,
Speaker 10: new high quality productive forces. What has not changed is
Speaker 10: that China has been unable to stimulate internal private consumption.
Speaker 4: Why not, let's stop there. That's important. This has been
Speaker 4: for year, stevehen you wrote about this with Richard Berner
Speaker 4: years ago. Why can't they stimulate consumption?
Speaker 10: Well, but the main reason in my few time is
Speaker 10: they just don't have a robust social safety net healthcare
Speaker 10: and pensions. And what that means is that, you know,
Speaker 10: Chinese people, when they earn money from working, they save
Speaker 10: it because of a fear of an uncertain future. And
Speaker 10: that fear driven precautionary saving means that an incremental rem
Speaker 10: and bee of of income goes into saving. They've got
Speaker 10: a personal savings rate that's over thirty percent, the highest
Speaker 10: in the world.
Speaker 6: So, Stephen, what is your view of the I don't
Speaker 6: know one to three year economic outlook for China because
Speaker 6: that will have an impact on the global economy.
Speaker 10: Well, I think the outlook is worrisome. China, because of
Speaker 10: this sort of stemied rebalancing, is still heavily dependent on exports.
Speaker 10: Exports are about twenty percent of their GDP. Their largest
Speaker 10: trading partner remains the United States, even though the US
Speaker 10: share has fallen significantly since the first round of Trump tariffs.
Speaker 10: So they're going to get hit by this external demand
Speaker 10: shock emanating from the US exacerbated by Trump's tariffs, and
Speaker 10: the risks are on the downside.
Speaker 4: Steve Roach, don't be strange. You're too short of visit.
Speaker 4: We greatly appreciate it. With the Yale University where he's
Speaker 4: never he gives out seas, it's.
Speaker 3: Always tough solids, you know, you know, getting him beef doctor.
Speaker 3: It's it's very hard to do. Stephen Roach, thank you.
Speaker 4: I can't say enough about some of his efforts in
Speaker 4: writing on China. I'll get those out on LinkedIn and
Speaker 4: Twitter here as well.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Apple Corplay and Android
Speaker 1: Auto with the Bloomberg Business app. You can also watch
Speaker 1: us live every weekday on YouTube and always on the
Speaker 1: Bloomberg terminal.
Speaker 4: Well, Mamadalarian, the zeitgeist was out there, but Larian nails
Speaker 4: it with a tweet that this has been under reported
Speaker 4: this morning in the United States United Kingdom service sector
Speaker 4: inflation up up up. They were looking for three point
Speaker 4: three percent, and their UK inflation statistic came in in
Speaker 4: a lofty three point five percent in April. That bears
Speaker 4: close close watching and goes over to Paul Sweeney's thirty year.
Speaker 3: Bond, which is my eyes are failing me right now.
Speaker 3: There it is five.
Speaker 4: Point zero two percent the Joiney's right now. And you know,
Speaker 4: I got to be honest, folks. I got the two
Speaker 4: O one K and the two one k is with Empower,
Speaker 4: and I could go in and they got when I
Speaker 4: log in, they got a bright but they got a
Speaker 4: blinking red light. Stupid put in more money exactly. Thank
Speaker 4: you Empower for that. Empower keeping track of all the
Speaker 4: retirement plans for all of us at BLOOMBERGILP, and we
Speaker 4: say thank you. They went out and got Martin Norton
Speaker 4: to be their investment strategist. What's it like being an
Speaker 4: investment strategist where we don't care what you think may
Speaker 4: is going to be? Like, we're looking at a three year,
Speaker 4: a five year, a ten year perspective.
Speaker 3: How do you ride along the empower line?
Speaker 11: Well, you know, I think what's really valuable to the
Speaker 11: retirement market to I would say individual investors broadly is
Speaker 11: making sure that the focus is on the fundamentals. I
Speaker 11: think there's so much noise out there from kind of
Speaker 11: data point to data point, headline to headline, and it
Speaker 11: can really have an emotional toll on people. And so
Speaker 11: my orientation with empower, whether it's the well side of
Speaker 11: the business, whether it's the retirement business, is to understand
Speaker 11: and you know, aim to understand what's happening with the
Speaker 11: fundamentals and how should that drive their views.
Speaker 3: But your charm is your morning star.
Speaker 4: If you live the certitude of a five star fund
Speaker 4: that all of a sudden stumbled and became a three
Speaker 4: star fund, how do you get long term investment in
Speaker 4: a select group of funds?
Speaker 3: Correct?
Speaker 11: Okay, So that's that's a great question. And of course,
Speaker 11: I think if you're looking at the data, a big
Speaker 11: part of it is the expenses equation. If you're trying
Speaker 11: to think through kind of what's going to drive performance
Speaker 11: over time?
Speaker 3: Can she read's book?
Speaker 11: You do want to keep those costs down, right, That's
Speaker 11: that's your one certainty in terms of what you're paying.
Speaker 11: You want to keep that as low as you can.
Speaker 11: But I also think my kind of grounding at morning
Speaker 11: Star one of the biggest takeaways that I had, you know,
Speaker 11: to your point, I grew up as an investor at
Speaker 11: morning Star. It was the importance of an investment philosophy,
Speaker 11: having a point of view, a framework that would help
Speaker 11: you distill what's happening in the markets and make determinations
Speaker 11: going forward. If you look at, you know, kind of
Speaker 11: the most successful strategies out there, they're not successful in
Speaker 11: every environment, but they have a touchstone that they return to,
Speaker 11: and I think those touchstones are really important to navigating
Speaker 11: shopping markets.
Speaker 6: So what does your investment outlook, your strategy for twenty
Speaker 6: twenty five or we've had a lot of volatility here big,
Speaker 6: you know, out of twenty percent draw down in the market,
Speaker 6: retraced a lot of that here, but it's kind of
Speaker 6: driven by not so much the fundamentals of company A
Speaker 6: or company B, but kind of trade policy out of Washington, DC.
Speaker 7: And I'm I'm certainy, So how do you guys talk
Speaker 7: to your clients about that?
Speaker 9: Well?
Speaker 11: You know, it's funny because back, you know, pre election,
Speaker 11: a lot of the commentary I was putting out was that,
Speaker 11: you know, you don't your your portfolio is not dependent
Speaker 11: on in Washington or what's in control or kind of
Speaker 11: how you feel politically about things. And yet we head
Speaker 11: into twenty twenty five and it's been the year of
Speaker 11: fiscal policy, and it's been decisions out of Washington that
Speaker 11: have caused kind of the ups and downs of the market.
Speaker 11: We entered twenty twenty five talking a lot about valuation
Speaker 11: and really concerned about the economy, and our estimations seemed
Speaker 11: reasonably healthy, but the valuations seemed high, especially in the
Speaker 11: mag seven, and so that was our greatest risk factor.
Speaker 11: And it seems like we've lived nine lives since the
Speaker 11: start of twenty twenty five, right, And so the valuation
Speaker 11: picture changed and then changed again. And I guess if
Speaker 11: I think back to that outlook at twenty twenty five
Speaker 11: and where we stand today. One of the biggest changes
Speaker 11: has been where the MAG seven is. The broad market
Speaker 11: looks expensive like it did back then, but the MAG
Speaker 11: seven looked cheap, and that was a surprise to me
Speaker 11: because my expectation was that MAG seven dictated the market.
Speaker 4: Is with all your work, are we over diversified in
Speaker 4: our four case?
Speaker 3: Peter Lynch was really good on this fidelity. Are there
Speaker 3: are there just too many things in our four one case?
Speaker 11: Well, I mean that depends on kind of how you're
Speaker 11: you know, if you're picking your own strategies, if you're
Speaker 11: picking your own investments within your four one K, then
Speaker 11: you know, it all depends on kind of come on
Speaker 11: four things.
Speaker 3: Paul can pick him. He's smarter than me.
Speaker 4: And the answer is we got advisors out there that
Speaker 4: is saying you need forty two things in your four
Speaker 4: and okay, it causes angst and empower.
Speaker 11: People get older him over there, there is a you
Speaker 11: know there was there's kind of like a retail market
Speaker 11: that follows the endowment market. The endowment like approach where
Speaker 11: you had to have a very diversified, you know, healthy
Speaker 11: selection of all these various investments. But I would say
Speaker 11: the average you know, retail investor still it's still a
Speaker 11: sixty forty split stock bonds. It's still kind of a
Speaker 11: vanilla approach to the market. So I wouldn't say that,
Speaker 11: you know, my impression of the average war one K
Speaker 11: investor is that they're too diversified, though I think there
Speaker 11: is that, you know, argument that people are trying to
Speaker 11: put a lot of stuff.
Speaker 7: Importantly is how about fixed income here?
Speaker 6: I mean again, Tom and I talk about to two
Speaker 6: year treasury at four percent?
Speaker 7: Do we it's not a bad way to make a
Speaker 7: living it.
Speaker 11: We take some credit risk here, So I think it's
Speaker 11: kind of an interesting market. One of the things that
Speaker 11: we've called for twenty twenty five is a year for
Speaker 11: coupon clipping. That idea of capital appreciation coming from your
Speaker 11: fixed income. It's just harder to get behind that when
Speaker 11: you think of the inflation forces, or the deficit forces
Speaker 11: or everything that kind of is putting a floor potentially
Speaker 11: under the yield curve. Now that felt like that was
Speaker 11: potentially the wrong view earlier in the year, but we're
Speaker 11: back to that situation right where people are focused on
Speaker 11: the deficit and they're thinking about yields and kind of
Speaker 11: a range bound mindset rather than you know, necessarily falling
Speaker 11: from here. I think one thing that's really important, and
Speaker 11: this has been a shift, has been thinking about as
Speaker 11: you're looking for capital preservation as an individual investor, not
Speaker 11: just going to the AG or the core bond space,
Speaker 11: but thinking about that breath of the yield curve and
Speaker 11: having some of the shorter dated securities in your portfolio.
Speaker 11: They have a very different risk profile. That inflation risk
Speaker 11: is not the same, the rate risk is not the same.
Speaker 11: They showed that in twenty twenty two and they've shown
Speaker 11: it since, and so I think that breath is a
Speaker 11: really important element for construction.
Speaker 7: How do you guys think about alternatives? I mean, it's
Speaker 7: become such a big part of the average ria that
Speaker 7: we go talk to.
Speaker 6: Yeah, it's not five percent of the allocation. It's a
Speaker 6: lot bigger.
Speaker 2: It's a lot bigger.
Speaker 7: And I'm surprised by that. Whether it's private equity, private debt,
Speaker 7: hedge funds. How do you guys think about that?
Speaker 11: Yeah, so empower is moving into or allowing partnering with
Speaker 11: alts in the private equity sense. But I guess when
Speaker 11: I think about your question, I want to expand on
Speaker 11: it a little bit because I think the word alternative
Speaker 11: is such a catch all, and it's important to define
Speaker 11: what we mean by alternative. So if we're thinking about
Speaker 11: something like private equity, I think the real case for
Speaker 11: private equity, of course is the breath, the broader exposure
Speaker 11: to the US equity market. But I think the operative
Speaker 11: word is equity. This is equity like exposure, and so
Speaker 11: you have to size it accordingly. You have public equity
Speaker 11: in your portfolio, so you have to think about that
Speaker 11: as you're looking at at private equity.
Speaker 3: Are you in Chicago? Are you in Winnipeg, Chicago, chic
Speaker 3: your deep deep South?
Speaker 4: Okay, within Power. Thank you so much, Buda Norton, greatly
Speaker 4: appreciate it. Strategist Power.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Apple Corplay and Android
Speaker 1: Auto with the Bloomberg Business app. You can also listen
Speaker 1: live on Amazon Alexa from our flagship New York station,
Speaker 1: Just say Alexa play Bloomberg eleven thirty.
Speaker 3: Right now with the newspapers.
Speaker 2: Who else but Lisa went all right?
Speaker 12: This is from the Wall Street Journal. This is a
Speaker 12: really interesting look at the real estate market in New
Speaker 12: York City. It looks like downtown is actually the new
Speaker 12: uptown for the rich and the wealthy. That's where they're
Speaker 12: going now. The city right the most expensive real estate
Speaker 12: has traditionally been like Billionaire's Row, Central Park, West, Upper
Speaker 12: east Side, but now things are changing. Listings below fourteenth
Speaker 12: Street are actually starting to compete with it. A lot
Speaker 12: of things firms, a lot of tech firms, finding firms
Speaker 12: are moving down there, more retail parks moving down there.
Speaker 12: New luxury condo developments along the West Side Highway, you've
Speaker 12: seen them, West Village, Tribeca, Chelsea. And that's the reason
Speaker 12: why they say there were more than more thirty million
Speaker 12: dollar plus home sales below thirty fourth Street in the
Speaker 12: past five years than in the previous decade.
Speaker 6: I did read that argument in the Adournale, and some
Speaker 6: of the places had there were spectacularacular eighty.
Speaker 2: Five million, like big, big bag.
Speaker 6: But I was on the Upper west Side last night
Speaker 6: walking around. That's still that is a great place to live.
Speaker 6: I always felt comfortable up there. It's it's nice. I
Speaker 6: lived on the Upper East back in the day, but
Speaker 6: upper I don't know.
Speaker 7: This city's a great place to be.
Speaker 4: Damian says Or sent me this morning thanking Natalie Wong.
Speaker 4: The IBM building, which is a lovely black brand building
Speaker 4: at Madison in fifty six, is sold one point.
Speaker 3: One billion new top tick. Oh taking it out. There's
Speaker 3: a spirit here to it within the lump.
Speaker 4: And I actually saw a restaurant yesterday doing the curb thing.
Speaker 7: Oh yes, the outdoor dining next to you.
Speaker 12: That is the season football could have its own version
Speaker 12: of the US Olympic Dream Team. Not traditional football. We're
Speaker 12: talking flag football, okay, but the NFL team owners. What
Speaker 12: they did is they proved this resolution it could allow
Speaker 12: those pro players to participate in flag football at the
Speaker 12: twenty twenty eight Olympics in Los Angeles. So it's really
Speaker 12: you've seen the NFL they've been pushing to make all
Speaker 12: around the world, they do, but not in the Olympics.
Speaker 7: They haven't laid they play flag football in Japan or Italy.
Speaker 2: I don't know.
Speaker 12: Well, now we'll find.
Speaker 2: Eight at the Olympics.
Speaker 12: But they're just trying to get you know that the
Speaker 12: NFL has been pushing to get them on this global stage.
Speaker 12: So this is really a good way for them. But
Speaker 12: I mean there's still more talks that have to be done, right,
Speaker 12: you have to talk about injuries, thing to consider, so
Speaker 12: they have to negotiate all.
Speaker 7: This is what I understand. That's like kind of the mass.
Speaker 12: One player parteam okay, and a couple of players have
Speaker 12: expressed interest. Patrick Mahomes does.
Speaker 3: He'll do it when thea Olympics.
Speaker 12: Twenty twenty eight.
Speaker 7: So we have a field couple of years, a couple
Speaker 7: of years.
Speaker 4: Featuring the fire and just LA and the sprawl. You know,
Speaker 4: good morning Los Angeles in your early morning. They got
Speaker 4: time to make it happen.
Speaker 6: Yes, and they've gotten most of the venues, most of
Speaker 6: the infrastructure there already. That's why you like go into
Speaker 6: LA and Salt Lake for example.
Speaker 2: You have one more of this one I do? Okay.
Speaker 12: So this there's an item from Lulu Lemon. It is
Speaker 12: all the talking social media, okay. It has nothing to
Speaker 12: do with working out either or leg it.
Speaker 2: Yes, okay. So it is there.
Speaker 12: Two in one maxi dress, so two in one because
Speaker 12: it can be used as a strapless dress and a
Speaker 12: long skirt. Miss Kean would love this. It's one hundred
Speaker 12: and forty eight dollars for colors. She can choose from.
Speaker 12: It's great. But the thing is is that it's getting
Speaker 12: kind of backlash too because people are saying one hundred
Speaker 12: and forty eight dollars for you know, a long dress. Expensive,
Speaker 12: but it's Lululemon.
Speaker 2: You have to think about that too.
Speaker 12: And they love the versatility, how soft it is.
Speaker 7: It can be worn as a skirt when its top
Speaker 7: is folded over.
Speaker 4: Hips, Editors, how did this story gets you.
Speaker 3: The gauntlet of surveillance editors?
Speaker 7: It's on the houseless Now you go on.
Speaker 3: Anything else you'd like to. Is there a bag that
Speaker 3: you know what's happening for you right now?
Speaker 7: Oh?
Speaker 2: You know what?
Speaker 12: No, Actually, this will be it, This will be this
Speaker 12: will be my thing for the summer. This is what
Speaker 12: you wear on the beach, around the streets of New
Speaker 12: York City. It's the mini maxi dress.
Speaker 4: And we'll do the newspapers tomorrow, I think Lisa Matato,
Speaker 4: thank you so much, greatly appreciated.
Speaker 1: This is the Bloomberg Surveillance podcast, available on Apple, Spotify,
Speaker 1: and anywhere else you get your podcasts. Listen live each
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