Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
Speaker 1: weekdays at ten am Eastern on Apple Car, playing Android
Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
Speaker 1: you get your podcasts, or watch us live on YouTube.
Speaker 2: Joining us now in studio. Man Deep Sync senior technology
Speaker 2: industry analyst over at Bloomberg Intelligence. So this is a
Speaker 2: headline that Lisa talked to us about earlier in the
Speaker 2: morning and we were both like, hint, no, that's not
Speaker 2: for us. So apparently Uber strikes in a chord with
Speaker 2: GM Cruise in terms of Uber's going to have self
Speaker 2: driving cars roaming around. Do I want this in my life?
Speaker 3: Well, I think it's just a function of how technology
Speaker 3: gets rolled out.
Speaker 2: So that's a yes for Man Deep.
Speaker 4: Yes, Okay, he's a forward looking guy.
Speaker 3: We see that already in three cities in the US.
Speaker 3: San Francisco, Phoenix and you know La. And what Vemo
Speaker 3: has shown is they have the technology to have the
Speaker 3: car right on its own and even though the scale
Speaker 3: is very small, they're doing one hundred k rides per week.
Speaker 3: Compare that to Uber, which does ten billion rides in
Speaker 3: a year globally.
Speaker 4: Well, what kind of rides are we talking about.
Speaker 3: God, so Veimo compared to that is doing one hundred
Speaker 3: k rides of five million annually if you run rate that.
Speaker 3: But look, what they have shown is this is the future.
Speaker 3: And Uber is trying to figure out where they fit
Speaker 3: in this future because they don't have their own autonomous technology,
Speaker 3: so they have to partner with someone. It's not going
Speaker 3: to be Tesla. Tesla has told us they want to
Speaker 3: do right sharing via their own app. They don't want
Speaker 3: a ride sharing intermediary. They have the fleet, they have
Speaker 3: the software, they have the app. Why use somebody else's app.
Speaker 3: And in the case of Weveimo, even though they have
Speaker 3: a partnership with Uber, bulk of their rights are through
Speaker 3: their own app. So that's where Uber doesn't have a choice.
Speaker 3: It partners with Cruise Cruises. I mean in terms of
Speaker 3: the technology, I would say way behind Tesla and Vemo.
Speaker 3: But at the same time with Uber, like I said,
Speaker 3: they divested their own autonomous R and D division back
Speaker 3: during the pandemic, so they are not developing anything in house.
Speaker 3: And in this case, it's just a matter of getting
Speaker 3: what they have in the market.
Speaker 4: You know, my first reaction is like a hard no,
Speaker 4: I'm not getting to an autonomous vehicle. But I get
Speaker 4: into a vehicle every morning at four p thirty morning
Speaker 4: with some dude. I don't know.
Speaker 2: Yeah, we're just not the early adopters.
Speaker 4: It's all right, I mean, but what's better than the
Speaker 4: other I don't know. So how does Uber view?
Speaker 1: You know?
Speaker 4: The driver list technology is a long term net positive
Speaker 4: or I.
Speaker 3: Mean it's definitely a negative simply because Uber operates on
Speaker 3: an asset light model, and even then it struggled to
Speaker 3: reach profitability. Right now, it's at a point where they
Speaker 3: incremental margin is positive. What happens with the autonomous rights
Speaker 3: is the incremental margin goes much lower because one, you
Speaker 3: have to license the technology from somebody, in this case
Speaker 3: Cruise or Vemo, so you have to pay them. And
Speaker 3: then the take rates go down because the autonomous rides
Speaker 3: have a much different unit economics then ride with a driver,
Speaker 3: so instead of getting that thirty percent take rate, their
Speaker 3: take rate goes lower.
Speaker 2: But eventually don't the I guess that's not true. And
Speaker 2: to say eventually the money that they'd have to pay
Speaker 2: to say GM Cruise, does that decrease But no, it
Speaker 2: probably increases, right because GM's gonna want to get more
Speaker 2: for their PA exactly.
Speaker 3: So if you don't own the technology, why would a
Speaker 3: GM or a Wemo or Tesla want one more intermediary
Speaker 3: when they could do their own app with the fleet.
Speaker 3: So Uber has two choices, either they license the technology
Speaker 3: or they start buying the cars. And if they start
Speaker 3: buying the cars, it's not an asset model anymore. So
Speaker 3: they have to buy the cars from Tesla, buy the
Speaker 3: cars from Veimo and these are so yeah.
Speaker 4: Why then did they divest their R and D back
Speaker 4: in the pandemic? It seems like now I understand the
Speaker 4: long term. Oh that's a problem.
Speaker 3: Yeah it is. And back then they were under pressure.
Speaker 3: Remember when you went into the pandemic, all these companies
Speaker 3: had cash flow issues. They were burning cash every month.
Speaker 3: So the best option for them was to divest this
Speaker 3: raise cash. And you know, it was never part of
Speaker 3: their long term plans when it comes to developing this
Speaker 3: in house. And I think right now it's proving to
Speaker 3: be a wrong decision.
Speaker 2: So how then does Ruber If you're an investor and
Speaker 2: you're looking at Uber stock, how does that have to
Speaker 2: be re rated?
Speaker 5: Then?
Speaker 6: Longer term?
Speaker 2: Like short term forget it?
Speaker 3: So look at what we have now, Uber is still
Speaker 3: the scale player. I mentioned ten billion rides, and right
Speaker 3: now they are the ones who have the most supplied. Now,
Speaker 3: if this thing scales up very quickly, which I don't
Speaker 3: think anyone is betting on right now, that autonomous skills,
Speaker 3: there's a lot of skepticism around taking these rides, so
Speaker 3: this will be more graduate.
Speaker 2: Front and center, right there in front of you.
Speaker 3: Yeah. So in that case, I think Uber has more
Speaker 3: time on hand. Like nobody is thinking of a next
Speaker 3: twelve month scenario where Uber loses, you know, thirty percent
Speaker 3: of their volume. We're talking about a gradual shift towards autonomous,
Speaker 3: and in that case, Uber has more time to do
Speaker 3: these kind of partnerships. I think Cruise is one. They'll
Speaker 3: probably try to partner with Tesla, if that would be
Speaker 3: my guess, Even if it comes at the expense of
Speaker 3: gross margin, they'll take the hit because it's all about
Speaker 3: existence and you know, maintaining the platform.
Speaker 2: And yeah, all right, Mandy, we appreciate it. You here
Speaker 2: next week.
Speaker 5: Oh yeah.
Speaker 2: In video intelligence, in video has changed everyone's vacation schedule,
Speaker 2: Man deep saying joining us a senior technology analyst at Bloomberg.
Speaker 1: Intelligence you're listening to the Bloomberg and Tell Elligence podcast.
Speaker 1: Catch us live weekdays at ten am Eastern on applecar
Speaker 1: Play and Android Auto with the Bloomberg Business App. You
Speaker 1: can also listen live on Amazon Alexa from our flagship
Speaker 1: New York station Just Say Alexa playing Bloomberg eleven thirty.
Speaker 4: All right, Today's focus on munis is brought to you
Speaker 4: by Bam Mutual. Bam Bam Bam Bam Bam Mutual insures
Speaker 4: municipal bonds that financial es central infrastructure and provides guaranteed
Speaker 4: income to provide to improve any portfolio. Be part of
Speaker 4: building America. Invest in BAM in short bonds. Our next
Speaker 4: guest joins us Amanda Albright, municipal financi reporter for Bloomberg News,
Speaker 4: also formerly of the Daily tar Heel, which means she
Speaker 4: went to the University of North Carolina, which means somehow
Speaker 4: she got through my screen of no tar heels on
Speaker 4: this program. But she's pretty solid there man to talk
Speaker 4: to us about the municipal bond market. You guys have
Speaker 4: a lot of great stories out recently. The one that
Speaker 4: really grabbed my attention is college's need up to one
Speaker 4: trillion dollars of campus upgrades to lure students, and I
Speaker 4: guess they're coming to the munis will bond market for that.
Speaker 6: Yes, So Moody's put out this estimate that colleges and
Speaker 6: universities might need seven hundred and fifty to nine hundred
Speaker 6: and fifty billion of spending on infrastructure, facilities, dorms, classrooms
Speaker 6: over the next decade in order to essentially stay competitive.
Speaker 6: The interesting thing about that number is that only encompasses
Speaker 6: their universe of credits that they rate, so the actual
Speaker 6: number could be even higher. It was interesting this story
Speaker 6: came out. Basically, the argument that Moody's is laying out
Speaker 6: is that colleges need to have really pretty campuses in
Speaker 6: order to attract customers, their students, and their students' parents
Speaker 6: who want their kids to go to a really pretty
Speaker 6: looking school and have kind of that pride. But interestingly enough,
Speaker 6: after the story came out, I got some messages from
Speaker 6: readers that disagreed with this premise and think that schools
Speaker 6: need to focus on teaching students and providing a good
Speaker 6: academic experience and they don't need to think about facilities.
Speaker 6: So it's an interesting topic within higher ed and that
Speaker 6: kind of balancing act that colleges are facing right now,
Speaker 6: trying to invest in facilities, trying to lure students, but
Speaker 6: also keep cost low and focus on their core mission.
Speaker 6: It's kind of one of those core debates in the
Speaker 6: higher ed world at the moment.
Speaker 2: Well, also, isn't it true that, like the tuition, even
Speaker 2: though tuition's insane and we're talking like eighty thousand dollars
Speaker 2: like that doesn't cover at all necessarily one person's entire education.
Speaker 6: There too, That's true. I think the interesting thing that
Speaker 6: I think colleges will need to grapple with, and something
Speaker 6: I'm interested in, is how much they kind of break
Speaker 6: down those costs for future students. You know, how much
Speaker 6: of tuition dollars are going to facilities. I think that's
Speaker 6: an interesting question.
Speaker 4: All Right, more money going to universities, less money going
Speaker 4: to municipal funded detention centers on feur inmates, what's going
Speaker 4: on there?
Speaker 6: Yeah, this is a classic political situation in the muni market.
Speaker 6: We've seen with changes in political control, different approaches to
Speaker 6: detentions and corrections policies, and so I think really that story,
Speaker 6: which was a great story that came out I think
Speaker 6: yesterday it highlights this growing risk that MUNI investor any
Speaker 6: to talk to any MUNI investor right now, and politics
Speaker 6: are at the forefront of everything, especially the presidential election.
Speaker 6: The corporate tax rate could be in play, individual tax
Speaker 6: rates could be in play. All of that will kind
Speaker 6: of affect muni's and then you have all these other
Speaker 6: kind I guess lower impacts as well, such as corrections,
Speaker 6: projects like. All of that is very affected by politics.
Speaker 6: So that's why MUNI investors are very focused on the
Speaker 6: election these days, along with everyone else.
Speaker 2: All right, Amanda, Yeah, everybody else, all right, Amanda, thanks
Speaker 2: a lot. Amanda all Bright, Bloomberg Community finance reporter, joining
Speaker 2: us from Kansas.
Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
Speaker 1: weekdays at ten am Eastern on Apple car Playing and
Speaker 1: broyd Outo with the Bloomberg Business app. Listen on demand
Speaker 1: wherever you get your podcasts, or watch us live on YouTube.
Speaker 4: I'm looking at the screen, lots of things moving all
Speaker 4: over the place. Stocks up, yields down. I'm looking at
Speaker 4: gold up one and a quarter percent, oil up one
Speaker 4: point nine percent on wtacrude oil. Is there a correlation there?
Speaker 4: I think our next guest has some thoughts on that.
Speaker 4: Mike McLoone, senior commodity strategist for Bloomberg Intelligence, zooming in
Speaker 4: from Miami, Florida. Mike, what's going on with gold and crude?
Speaker 5: Paul, Hello.
Speaker 7: We have the difference between an enduring bull market that's
Speaker 7: gold right now it said if you end the week
Speaker 7: the month now, it's at a record high, and an
Speaker 7: enduring bear market that's Crudeill The price in the screen
Speaker 7: you see right now WTI seventy four dollars a barrow
Speaker 7: about there was first traded in two thousand and six.
Speaker 7: That's almost twenty years ago. And as we tilt towards
Speaker 7: this easing cycle, kipically that spread with gold outperforming Crudeli
Speaker 7: widens and it looks like it's just getting started.
Speaker 2: First of all, you bury the lead. We're not coming
Speaker 2: to Miami, Mike, so you can you can stop looking
Speaker 2: for fun things for us to do. You cannot worry
Speaker 2: about your guest rooms like we're good. So the record
Speaker 2: high though that we saw back in gold, that we
Speaker 2: keep hitting here, I'm really struggling as to what is
Speaker 2: actually leading it, because you know, the last ten years
Speaker 2: and we had low rates and all that gold did
Speaker 2: a whole lot of nothing, and it has just been
Speaker 2: feeling like a NonStop tear in the last few years.
Speaker 5: Yeah, let's start with two things.
Speaker 7: The unstoppable rise in US debt to GDP, the very
Speaker 7: expensive US stock market, the Federal Reserve tilting towards easing.
Speaker 7: And the most significant outfit in the room is the
Speaker 7: unlimited friendship between President Zy and President Putin that shifted
Speaker 7: the world order in favor of gold. And it looks
Speaker 7: like it's yourself and so the biggest deepest pockets on
Speaker 7: that planet I starting with China, have been buying the metal.
Speaker 7: And it looks like once we get a little bit
Speaker 7: of a version in lower yields i e. T Bills
Speaker 7: not at five percent anymore, and maybe just a little
Speaker 7: back and fill in the stock market, gold will shine.
Speaker 5: It looks like it's continuing to that now. Right now,
Speaker 5: it's a little bit overdone.
Speaker 7: Manage money net positions IE futures are really long for
Speaker 7: a reason. It's a bull market. But the narrative for
Speaker 7: gold is quite strong. And I'll just meant and with
Speaker 7: is gold is historically very cheap versus SEP five hundred.
Speaker 7: If you just take it divided by the ounces divided
Speaker 7: by the index, particularly when you enter recessions. What oftentimes
Speaker 7: happens when you enter recession and fetis is that that
Speaker 7: spread just kind of narrows a little bit.
Speaker 4: What would take what would change this seems to be
Speaker 4: a structural bullish call on gold. Mike, what would need
Speaker 4: to change that?
Speaker 7: I think the first thing is the US stock markets
Speaker 7: stay resilient. Well, why by golden when it's that resilient.
Speaker 7: The most significant thing was kind of some kind of
Speaker 7: unexpected dayton ie President Zy picking up the phone saying yeah,
Speaker 7: we're done with this unlimited friendship. The dayton that's happening
Speaker 7: globally is part of what's really driving gold. He's somewhat
Speaker 7: getting away from the dollar, looking for an altern to
Speaker 7: US treasuries, particularly with yields dropping and the death the
Speaker 7: GDP just continuing to rise, So that to me would
Speaker 7: be in one of the most significant things. Otherwise, it
Speaker 7: looks to me, once you get a little bit of
Speaker 7: a version lower in the stock market, which at some
Speaker 7: point will happen, gold will probably shine like long bonds,
Speaker 7: like on the month, now on the quarter. Now, gold's
Speaker 7: up about eight percent in the US Treasury. The Bloomberg
Speaker 7: twenty plus long bond indexes up about the same, about
Speaker 7: eight percent.
Speaker 2: What about positioning at this point, Like I know in
Speaker 2: the central banks are buyers, et cetera, and that in
Speaker 2: price spikes, you're not going to see a lot of
Speaker 2: physical buying also, et cetera. But who's left to buy
Speaker 2: in the futures market.
Speaker 5: It's that's the key thing. It's a good point.
Speaker 7: About forty four percent of total co mix futures positions
Speaker 7: are speculative longs.
Speaker 5: It's very high.
Speaker 7: The high it really gets much higher than forty eight.
Speaker 7: But what's really happening is we've had significant outflows in
Speaker 7: gold dtfs since that peak in twenty twenty. They're just
Speaker 7: starting turned inflows and I think that is part of
Speaker 7: that alternative. You see people going to cash and bonds.
Speaker 7: They're looking for alternatives to expensive stock market. So that
Speaker 7: looks it's just rolling over. But if you got a
Speaker 7: day like we had in August fifth, when markets go down, yeah,
Speaker 7: you hit you sell what you can. And there's a
Speaker 7: lot of specative lungs in goal at the moment for
Speaker 7: a good reason. Though it's a bull market.
Speaker 4: That's a trader's term. You sell what you can. Yeah,
Speaker 4: you have on those days. Hey, Mike, thanks so much
Speaker 4: for joining us. I appreciate it very much. As always,
Speaker 4: Mike mcloone's Cedar Commodity Strategists for Bloomberg Intelligence, I'm looking
Speaker 4: at like some of the Whenever you talk to Mike,
Speaker 4: I put up g LCO the Global Commodity Price screen.
Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
Speaker 1: weekdays at ten am Eastern on applecard Play 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 playing Bloomberg eleven thirty.
Speaker 2: So let's get to the markets here. Equities rally, you
Speaker 2: haven't been to the bond market, and the dollars lower.
Speaker 2: It's classic.
Speaker 5: The Fed is going to cut.
Speaker 2: I guess the question is by how much? And then
Speaker 2: how does that affect your positioning? And the why they're
Speaker 2: cutting too very much important. Dana Duoria, Co, Chief Investment
Speaker 2: Officer of Investment joins us. Now, Dana, how did you
Speaker 2: view the jackson Hole speech by Powell? Was that twenty
Speaker 2: five cuts for you in September or was that fifty.
Speaker 8: I think it's twenty five. Look, I think that you
Speaker 8: could not ask for more dubvish comments from Powell this week.
Speaker 8: You know, I think he knew that the market needed
Speaker 8: to hear something like that in order not to react negatively.
Speaker 8: We've obviously been pricing in significant it decreases, and so
Speaker 8: he delivered, right, and he gave us a speech that
Speaker 8: said yep, I'm there, you know, I think, and even
Speaker 8: words like ensuring that inflation is anchored. You know, it
Speaker 8: was not only a dubbish speech. It was sort of
Speaker 8: a victory lap, right for him to say, Hey, our
Speaker 8: monetary policy worked out, We've tamed inflation. Now it's time
Speaker 8: to turn to unemployment and we are going to cut.
Speaker 8: But I don't think that means, you know, all that
Speaker 8: excitement means that were necessarily getting fifty. I think it's
Speaker 8: his way of saying, you know, yes we can all
Speaker 8: the sigh of relief. I think he still gives himself
Speaker 8: the twenty five In September.
Speaker 4: Hey, Dana, just looking at the price action today, the
Speaker 4: russell is up three point three percent versus a one
Speaker 4: percent for the S and P five hundred. So I
Speaker 4: guess that rotation trade into maybe smaller mid cap stocks
Speaker 4: out of you know, some of the other big cap names.
Speaker 4: Maybe that's really a thing. How do you guys think
Speaker 4: about that?
Speaker 8: Yeah, look, I mean, obviously small caps more interest rates sensitive,
Speaker 8: and you know, this is great news. And certainly as
Speaker 8: you go into an interest rate reducing cycle, you know
Speaker 8: you're you're looking at benefits to small caps. You're looking
Speaker 8: at benefits obviously in the real estate sector already somewhat
Speaker 8: expecting that and pricing that in. So not surprising to
Speaker 8: see that, you know, and then you mentioned even in
Speaker 8: your intro, but what is the reason.
Speaker 2: We expect the cuts?
Speaker 8: I think if you think that cuts are happening because
Speaker 8: you know, the feed is a little bit worried about
Speaker 8: what's going on in the economy, that's not good news
Speaker 8: for small caps.
Speaker 5: Right.
Speaker 8: It's short term good news, but it's not good news.
Speaker 8: You know, if you think you're looking at recession, if
Speaker 8: you think that the FED is playing this right, they're
Speaker 8: hitting the ball right down the middle. They've tamed inflation,
Speaker 8: and now they're going to prevent problems in the economy.
Speaker 8: Great news for small caps.
Speaker 2: I guess the question, though, becomes do they wind up
Speaker 2: cutting because there is a recession. And that's kind of
Speaker 2: the unknowable because if they're cutting for that elusive soft
Speaker 2: landing or normalization, that shouldn't that be a different distribution
Speaker 2: of investment than if you are cutting because things are bad.
Speaker 8: Yes, yeah, it would be. I mean, look a high
Speaker 8: level we advocate strategic, long term, diversified thinking. Don't try
Speaker 8: to time this.
Speaker 5: You know.
Speaker 8: That said, if you're thinking about tilting in a certain
Speaker 8: direction based on one of those outcomes to the other.
Speaker 8: You know, if you think recession's coming, you're tilting towards quality, right,
Speaker 8: you're tilting towards low volatility stocks stacks that sort of
Speaker 8: act as a ballast in bad weather. If you think
Speaker 8: that the FED is getting this right, that they are
Speaker 8: cutting in time, that they're not late with this, that
Speaker 8: they're pivoting at exactly the right moment, that we are
Speaker 8: going to avert, you know, a problem with this the
Speaker 8: AI trade. Maybe maybe your thesis is the AI trade is,
Speaker 8: you know, full steam ahead, and we're even going to
Speaker 8: start to see productivity increases in the rest of the economy.
Speaker 6: Then you know, areas like.
Speaker 8: Small in value where they've been they've been kind of
Speaker 8: ignored from evaluation perspective, they look a lot more attractive.
Speaker 8: You're going to be leaning more heavily there, all.
Speaker 4: Right, Dannis, So today's price action shows us that obviously
Speaker 4: the Fed still matters, The market cares what the Fed
Speaker 4: is going to do. But so to earnings, and we
Speaker 4: just kind of finished up in earnings cycle here, any
Speaker 4: takeaways for you that maybe influence the way you're thinking
Speaker 4: about opportunities.
Speaker 8: Yeah, Look, earnings are cooperating, right, Earnings are in the
Speaker 8: plus category here. We've had a nice earning season. You know,
Speaker 8: combined S and P five hundred, earnings grew nearly eleven
Speaker 8: percent year every year. At this point, we do having
Speaker 8: VideA still to see obviously, the AI king, we want
Speaker 8: to see where that's going to go. That's going to
Speaker 8: be meaningful for the market, potentially even on the same
Speaker 8: level as today, right to the extent that AI has
Speaker 8: been driving a lot of the market's valuation increases, the
Speaker 8: multiples that we're seeing in a big you know that
Speaker 8: big tech, heavy concentrated part of the market, communications and tech,
Speaker 8: so that that's going to be very important. But certainly
Speaker 8: what's nice to see about you know, earnings right now
Speaker 8: is that with nearly eighty percent of the companies beating
Speaker 8: their expectations, and most of the sector is doing well,
Speaker 8: you know, sectors like financials. This is good, you know,
Speaker 8: it shows breadth, right, it's not just earnings coming from
Speaker 8: that concentrated part of the market that's highly valued.
Speaker 2: So I'm glad you brought that up because I feel
Speaker 2: like I've been asking this question ad nauseum, which is
Speaker 2: is in video going to be a market event or
Speaker 2: is it going to be a mag seven slash chip
Speaker 2: stock event? Where do you fall on that?
Speaker 8: I think it's going to matter, you know, because of
Speaker 8: course we already do have the news now from Powell,
Speaker 8: and obviously, notwithstanding we've got a month before these cuts
Speaker 8: actually take place, and that's a lot of time for
Speaker 8: data to shift one way or the other. But it's
Speaker 8: pretty well baked in that. You know, we get the
Speaker 8: twenty five in September, so the market's pricing that in.
Speaker 8: And now the question does become, you know, where where
Speaker 8: goes in Vidia has gone, you know, to a certain extent,
Speaker 8: belief in the AI trade. Of course, we know that
Speaker 8: there's a whole you know, satellite system of companies around
Speaker 8: there that are AI driven and you know, carry the
Speaker 8: flag for AI. But let's face it, in Vidia is
Speaker 8: the market sort of bell weather for that. And I
Speaker 8: think that does matter a lot, because again, a lot
Speaker 8: of the valuation increases we see on the large cap
Speaker 8: side in that growth space are around.
Speaker 3: This thesis, Dana.
Speaker 4: On the fixed income side, where do you see opportunity?
Speaker 8: You know, of course, obviously the expectation now with the
Speaker 8: FED decreasing rates and you start to see some movement there,
Speaker 8: I remain I am and remain you know, a candidate
Speaker 8: for just diversity across the yield curve. I don't think
Speaker 8: it's smart for the average person to be betting on
Speaker 8: interest rate cuts. I think, you know, the market is
Speaker 8: pricing in the interest rate cuts as quickly as they're
Speaker 8: pricing in you know, equity changes. So if you're in
Speaker 8: the retail advisor area where we exist, you know, tilting
Speaker 8: one way or the other on interest rates is a
Speaker 8: thing to is a tough thing to do.
Speaker 3: It's not just right the FED.
Speaker 8: When you think of something like the ten year rate,
Speaker 8: which obviously we're all watching now, there's a lot that
Speaker 8: goes into that rate. You know, it's not it's not
Speaker 8: just the Fed. It's the it's the markets expectations about
Speaker 8: where the economy is going, how much growth are we're
Speaker 8: going to see in the mid term. So I say,
Speaker 8: you know, make sure you're diverse fied across the field curve.
Speaker 8: I don't even think of bar Bell. I think, you know,
Speaker 8: trying to get across the yield curve is the right
Speaker 8: place to be.
Speaker 2: All right, Dan, And we really appreciate thanks for jumping
Speaker 2: on on this Friday, and next week definitely going to
Speaker 2: be a busy week as well. Dana Dyuoria a co
Speaker 2: Chief investment Officer at Investment.
Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,
Speaker 1: and anywhere else you get your podcasts. Listen live each
Speaker 1: weekday ten am to noon Eastern on Bloomberg dot com,
Speaker 1: the iHeartRadio app, tune In, and the Bloomberg Business app.
Speaker 1: You can also watch us live every weekday on YouTube
Speaker 1: and always on the Bloomberg terminal.