1 00:00:00,400 --> 00:00:03,960 Speaker 1: Strap on your parachute. It's time for What Goes Up 2 00:00:04,120 --> 00:00:13,960 Speaker 1: with Sarah Ponzick and Mike Reagan. Hello and welcome to 3 00:00:14,040 --> 00:00:17,360 Speaker 1: What goes Up, a Bloomberg weekly markets podcast. I'm Sarah 4 00:00:17,360 --> 00:00:20,960 Speaker 1: pons Porter on the Cross Asset Team, and I'm Mike Reagan, 5 00:00:21,120 --> 00:00:23,920 Speaker 1: a senior editor at Bloomberg. This week on the show, 6 00:00:24,200 --> 00:00:27,840 Speaker 1: is the market melt up? Finally? Over stocks came back 7 00:00:27,880 --> 00:00:31,440 Speaker 1: to earth this week after a spectacular surge in the 8 00:00:31,600 --> 00:00:34,360 Speaker 1: SMP five hundred from its lows in March. We'll talk 9 00:00:34,400 --> 00:00:37,800 Speaker 1: with a veteran investment strategist and economist about what an 10 00:00:37,880 --> 00:00:40,839 Speaker 1: unusual summer it was and how, like the changing of 11 00:00:40,880 --> 00:00:45,000 Speaker 1: the seasons, markets maybe in store for some less favorable weather, 12 00:00:45,800 --> 00:00:48,680 Speaker 1: and as always, will close out the episode with our 13 00:00:48,680 --> 00:00:52,920 Speaker 1: tradition the craziest thing I saw in markets this week? Sarah, 14 00:00:52,960 --> 00:00:55,080 Speaker 1: I got a warning. I'm double dipping on the crazy 15 00:00:55,160 --> 00:00:58,320 Speaker 1: things this week. That's good because I really am lacking. 16 00:00:58,400 --> 00:01:00,400 Speaker 1: So maybe I'll have to take one of yours, A 17 00:01:00,720 --> 00:01:03,160 Speaker 1: good good Actually I got one from our collie, Emily Barrett. 18 00:01:03,200 --> 00:01:06,280 Speaker 1: Well maybe you can use hers. But uh, and as 19 00:01:06,280 --> 00:01:09,600 Speaker 1: you said, returning to the show, Uh, really a great 20 00:01:09,640 --> 00:01:12,800 Speaker 1: guest I like this guest because every time we see her, 21 00:01:12,920 --> 00:01:17,080 Speaker 1: she makes me think and makes me laugh about markets 22 00:01:17,200 --> 00:01:20,440 Speaker 1: and just the world in general. Her name is Nila 23 00:01:20,680 --> 00:01:24,399 Speaker 1: Richardson and she works at Edward Jones. Nila, welcome back 24 00:01:24,400 --> 00:01:26,120 Speaker 1: to the show. I think this is your third time, 25 00:01:26,280 --> 00:01:28,920 Speaker 1: is that right? Thank you, Mike. It's so great to 26 00:01:28,959 --> 00:01:31,319 Speaker 1: be here. And I wasn't sure you were talking about me, 27 00:01:31,400 --> 00:01:35,200 Speaker 1: so thanks for confirming that. No, I gotta say, I'm 28 00:01:35,240 --> 00:01:37,640 Speaker 1: also happy to have you this week because I know 29 00:01:37,760 --> 00:01:40,959 Speaker 1: you're a proud resident of the Great Garden state of 30 00:01:40,959 --> 00:01:45,240 Speaker 1: New Jersey. And our friend Sarah here, believe it or not, 31 00:01:45,360 --> 00:01:48,800 Speaker 1: has just discovered the Jersey Shore for the first time 32 00:01:49,000 --> 00:01:51,600 Speaker 1: in my life. I went to the Jersey Shore, and 33 00:01:51,640 --> 00:01:54,480 Speaker 1: I can say I will be going back. Sarah's from Florida, 34 00:01:54,520 --> 00:01:57,440 Speaker 1: and I think the Jersey Shore is basically like Florida 35 00:01:57,560 --> 00:02:00,160 Speaker 1: with with colder water. Yeah, I had a hard time 36 00:02:00,200 --> 00:02:03,200 Speaker 1: getting in the water. Used to like eighty degree water 37 00:02:03,280 --> 00:02:05,920 Speaker 1: in Florida. Wasn't the same up here. So, Dila, the 38 00:02:05,960 --> 00:02:09,160 Speaker 1: first question has to be what's your favorite Jersey short town? Jeez, 39 00:02:09,240 --> 00:02:12,000 Speaker 1: I don't know if I have one. I can't say 40 00:02:12,040 --> 00:02:14,360 Speaker 1: that I have one, but I can say that in 41 00:02:14,400 --> 00:02:17,280 Speaker 1: Florida you probably see a lot of New Jersey people, right, 42 00:02:17,800 --> 00:02:20,799 Speaker 1: I mean, isn't it basically the same people? Right? The 43 00:02:20,800 --> 00:02:26,160 Speaker 1: people are the same, the beaches are different. Do you 44 00:02:26,240 --> 00:02:28,840 Speaker 1: have a favorite? Oh that's a loaded question, you know. 45 00:02:28,919 --> 00:02:31,360 Speaker 1: Sarah asked me that, and I unloaded with about a 46 00:02:31,360 --> 00:02:34,799 Speaker 1: four thousand word in response with footnotes. I like your 47 00:02:34,880 --> 00:02:37,120 Speaker 1: diplomatic answer though. That was a good one. You can. 48 00:02:37,520 --> 00:02:40,200 Speaker 1: It's a touchy subject, the most pressing question of the 49 00:02:40,360 --> 00:02:43,400 Speaker 1: entire podcast. That's right, that's right. But I'm very excited. 50 00:02:43,440 --> 00:02:45,520 Speaker 1: I think Sarah is gonna end up being a Jersey 51 00:02:45,560 --> 00:02:51,160 Speaker 1: woman eventually. I can see it coming. Work on that hair. 52 00:02:51,240 --> 00:02:53,000 Speaker 1: You need to work on getting that hair a little higher, 53 00:02:53,160 --> 00:02:56,160 Speaker 1: work on it, tease it up. But Neila, you know, 54 00:02:56,200 --> 00:02:59,359 Speaker 1: as Sarah said in the introduction, Wow, what a crazy 55 00:02:59,440 --> 00:03:03,360 Speaker 1: summer it was. I mean, you know, this ferocious melt 56 00:03:03,480 --> 00:03:06,480 Speaker 1: up in the stock market. I guess now this week 57 00:03:06,520 --> 00:03:09,799 Speaker 1: we're looking at Thursday, a massive sort of sell off, 58 00:03:10,080 --> 00:03:14,040 Speaker 1: the market coming back to earth. I mean, was that inevitable? 59 00:03:14,040 --> 00:03:16,720 Speaker 1: Do you think? And how much should we worry be 60 00:03:16,760 --> 00:03:19,680 Speaker 1: worried about this latest volatility in the market? In your mind, 61 00:03:20,000 --> 00:03:22,680 Speaker 1: it was inevitable, and we shouldn't worry about it. I'll 62 00:03:22,720 --> 00:03:25,800 Speaker 1: tell you. I mean, this is the early stages of 63 00:03:25,840 --> 00:03:29,240 Speaker 1: what we think is a bear market recovery that could 64 00:03:29,280 --> 00:03:32,400 Speaker 1: turn into the next bowl market. It's an early bowl. 65 00:03:32,480 --> 00:03:35,840 Speaker 1: It's gonna wobble before it walks. And it's been so 66 00:03:36,000 --> 00:03:40,240 Speaker 1: fast this rally that the economic fundamentals haven't had a 67 00:03:40,320 --> 00:03:43,720 Speaker 1: chance to catch up yet. So I would frankly worry 68 00:03:43,840 --> 00:03:47,200 Speaker 1: to see the rally continue in this relentless way. We 69 00:03:47,240 --> 00:03:52,880 Speaker 1: should expect some occasional sell offs, an occasional pullback that 70 00:03:52,960 --> 00:03:57,040 Speaker 1: would not be outside of historical precedent for any year, 71 00:03:57,600 --> 00:04:00,480 Speaker 1: especially a year with so much economic inncer outanty is 72 00:04:00,520 --> 00:04:02,520 Speaker 1: the one we're in now. So like you said, it 73 00:04:02,560 --> 00:04:05,520 Speaker 1: was inevitable. I mean, you look at some measures of 74 00:04:06,080 --> 00:04:10,160 Speaker 1: momentum for the SMP five hundred, for the nasdack reaching 75 00:04:10,160 --> 00:04:14,360 Speaker 1: the highest level since January. I mean, there's no doubt 76 00:04:14,520 --> 00:04:18,039 Speaker 1: that we had seen this unbelievable runs pretty much just 77 00:04:18,080 --> 00:04:23,800 Speaker 1: relentless since the March bottom. Does this open up a 78 00:04:23,880 --> 00:04:26,760 Speaker 1: window for a new regime? Though, I know a lot 79 00:04:26,760 --> 00:04:28,680 Speaker 1: of people have been talking about this rotation, and the 80 00:04:28,720 --> 00:04:31,440 Speaker 1: self we saw on Thursday was very much tech lad 81 00:04:32,680 --> 00:04:37,000 Speaker 1: Can we possibly know that yet? Not yet, But this 82 00:04:37,040 --> 00:04:39,120 Speaker 1: is what we expect, and this is why we're telling 83 00:04:39,160 --> 00:04:44,320 Speaker 1: our clients to maintain a diversification, maintain exposure across asset 84 00:04:44,400 --> 00:04:48,760 Speaker 1: classes and sectors, especially those sectors that are poised for 85 00:04:48,839 --> 00:04:53,920 Speaker 1: an economic recovery. So that's international, small cap and sectors 86 00:04:53,960 --> 00:04:56,960 Speaker 1: like financials and industrials. People say it over and over 87 00:04:56,960 --> 00:04:58,840 Speaker 1: again because it's true, and it's true, and it's true. 88 00:04:58,960 --> 00:05:01,919 Speaker 1: You can't put your eggs in one basket, even a 89 00:05:02,040 --> 00:05:06,000 Speaker 1: kept friendly basket. It's better to be diversified across sector 90 00:05:06,120 --> 00:05:10,520 Speaker 1: so you can actually gain in in sectors that have 91 00:05:10,640 --> 00:05:14,400 Speaker 1: been hurt by the pandemic but poised to rise in 92 00:05:14,400 --> 00:05:17,000 Speaker 1: the recovery. I always wonder about that. I mean, what 93 00:05:17,080 --> 00:05:19,680 Speaker 1: do you have a different basket in each hand when 94 00:05:19,680 --> 00:05:22,240 Speaker 1: you're carrying your legs. It's it's very complicated. I don't 95 00:05:22,240 --> 00:05:24,480 Speaker 1: know how you you actually do that. But no, let's 96 00:05:24,520 --> 00:05:26,640 Speaker 1: get back to that economic data. I mean, it seems 97 00:05:26,720 --> 00:05:30,000 Speaker 1: like there is uh you know, one day there's a 98 00:05:30,080 --> 00:05:32,800 Speaker 1: data point that looks great, whether it be say housing, 99 00:05:33,640 --> 00:05:37,120 Speaker 1: um retail sales, something like that, and then the next 100 00:05:37,560 --> 00:05:40,400 Speaker 1: you know, we're still looking at if you round up 101 00:05:40,400 --> 00:05:44,200 Speaker 1: to something like a million jobless claims a week. What's 102 00:05:44,240 --> 00:05:49,800 Speaker 1: the disconnect there? Can that data continue to improve on 103 00:05:49,880 --> 00:05:53,240 Speaker 1: sort of the rosy end of the economic spectrum as 104 00:05:53,320 --> 00:05:57,039 Speaker 1: this labor market still seems to struggle to get its 105 00:05:57,040 --> 00:06:00,240 Speaker 1: head back above water. Is there sort of a meeting 106 00:06:00,279 --> 00:06:02,159 Speaker 1: in the middle that will have to come or you know, 107 00:06:02,600 --> 00:06:05,039 Speaker 1: some of the better data going to cool off as 108 00:06:05,120 --> 00:06:08,480 Speaker 1: this labor data improves, or you know, what's what's your 109 00:06:08,480 --> 00:06:13,440 Speaker 1: outlook for how to read the upcoming economic reports? You know, 110 00:06:13,600 --> 00:06:15,520 Speaker 1: I think of it as a rally. It's like a 111 00:06:15,560 --> 00:06:18,680 Speaker 1: four legged rally. The first leg of that rally was 112 00:06:18,800 --> 00:06:21,480 Speaker 1: ran by the Fed when they cut interest rates, when 113 00:06:21,520 --> 00:06:24,120 Speaker 1: they dived into the credit markets and promised to buy 114 00:06:24,160 --> 00:06:28,719 Speaker 1: basically everything that had a cupon except for the lowest 115 00:06:28,760 --> 00:06:31,520 Speaker 1: of the junk bonds. Um They were the first leg 116 00:06:31,560 --> 00:06:33,679 Speaker 1: of the rally. And then it was followed very quickly 117 00:06:33,760 --> 00:06:39,719 Speaker 1: by fiscal stimulus, bipartisan fiscal stimulus, almost four trillion dollars. 118 00:06:39,760 --> 00:06:42,120 Speaker 1: That's a lot of stimulus. We're still waiting on the 119 00:06:42,160 --> 00:06:45,720 Speaker 1: completion of that leg. And then the rally. The next 120 00:06:45,800 --> 00:06:49,240 Speaker 1: leg was the stock rally. So quick the fervency of 121 00:06:49,240 --> 00:06:52,200 Speaker 1: that rally from the March twenty three low. So now 122 00:06:52,279 --> 00:06:56,320 Speaker 1: we're waiting for this handoff from the fiscal stimulus from 123 00:06:56,320 --> 00:06:59,240 Speaker 1: the stock market to the economy. We're waiting for the 124 00:06:59,279 --> 00:07:02,360 Speaker 1: economy to take the baton, so to speak. The problem 125 00:07:02,440 --> 00:07:05,640 Speaker 1: is the data we've seen has shown a slowing momentum. 126 00:07:05,680 --> 00:07:08,040 Speaker 1: You can see that in the jobs market, for example, 127 00:07:08,880 --> 00:07:12,400 Speaker 1: the pace of job gains has slowed. And so the question, 128 00:07:12,560 --> 00:07:14,320 Speaker 1: and this is going to be where you're going to 129 00:07:14,320 --> 00:07:17,480 Speaker 1: see the volatility and the disconnect, is can the economy 130 00:07:17,760 --> 00:07:20,800 Speaker 1: keep up enough to grab that baton and keep running. 131 00:07:21,120 --> 00:07:24,120 Speaker 1: I think it's too early to do that without some stimulus, 132 00:07:24,160 --> 00:07:26,680 Speaker 1: without some help, so we're going to need I think 133 00:07:26,760 --> 00:07:30,239 Speaker 1: at that fifth round of stimulus that's stalemate NG sitting 134 00:07:30,240 --> 00:07:33,560 Speaker 1: on the sidelines in Congress to really get the economy 135 00:07:33,920 --> 00:07:38,000 Speaker 1: shirt up for a sustainable recovery. So this handoff that 136 00:07:38,040 --> 00:07:39,800 Speaker 1: you're looking for, that and from the stock market to 137 00:07:39,880 --> 00:07:43,040 Speaker 1: the economy to really take the baton and show that 138 00:07:43,120 --> 00:07:45,680 Speaker 1: this was all worth it. The rally that we have 139 00:07:45,800 --> 00:07:49,840 Speaker 1: seen off the bottom was worth it and made sense 140 00:07:49,960 --> 00:07:53,720 Speaker 1: as well. How much patience should investors have? I mean, 141 00:07:53,880 --> 00:07:58,160 Speaker 1: how long might that take? Especially considering we have not 142 00:07:58,240 --> 00:08:01,320 Speaker 1: yet seen another fiscal pack cage, and like you said, 143 00:08:01,800 --> 00:08:04,720 Speaker 1: the economic data is is a little bit mixed. Well, 144 00:08:04,800 --> 00:08:08,920 Speaker 1: let's be fair, Sarah. Investors have been rewarded by being 145 00:08:09,000 --> 00:08:11,040 Speaker 1: patient and they didn't even have to be that patient. 146 00:08:11,320 --> 00:08:13,640 Speaker 1: What was it too bad weeks and then we saw 147 00:08:13,680 --> 00:08:19,200 Speaker 1: this huge rally. I mean, patients hasn't even been required 148 00:08:19,520 --> 00:08:23,000 Speaker 1: the summer for investors. But investors are going to have 149 00:08:23,120 --> 00:08:25,800 Speaker 1: to get used to not flinching by a daily move. 150 00:08:26,520 --> 00:08:30,320 Speaker 1: I think that the market has been actually rather complacent 151 00:08:30,560 --> 00:08:34,760 Speaker 1: given how dire the economic fundamentals are. So this is 152 00:08:34,800 --> 00:08:37,880 Speaker 1: a time for for investors to get real in terms 153 00:08:37,880 --> 00:08:40,880 Speaker 1: of their expectations. If you look back for the last 154 00:08:40,920 --> 00:08:45,680 Speaker 1: three years, Uh, going into this week, stocks had been 155 00:08:45,760 --> 00:08:50,760 Speaker 1: returning the last three years, even before the pandemic. We 156 00:08:50,880 --> 00:08:53,600 Speaker 1: did not expect that level of stock price return for 157 00:08:54,960 --> 00:08:58,280 Speaker 1: so we need to reset our expectations for more reasonable 158 00:08:58,320 --> 00:09:02,520 Speaker 1: growth going forward and occasional pullbacks and volatility and not 159 00:09:02,640 --> 00:09:24,000 Speaker 1: let that shake us from our strategy of a diversified approach. Yeah, Neil, 160 00:09:24,040 --> 00:09:25,960 Speaker 1: I was reading some of the notes you sent over 161 00:09:26,520 --> 00:09:29,880 Speaker 1: before this interview, and one of the things you mentioned was, 162 00:09:30,320 --> 00:09:32,640 Speaker 1: you know, if you're if you have a balanced portfolio, 163 00:09:32,760 --> 00:09:38,720 Speaker 1: say a sixty percent stocks bonds type of portfolio, obviously 164 00:09:38,840 --> 00:09:41,560 Speaker 1: right now is the time to rebalance that your your 165 00:09:41,600 --> 00:09:44,680 Speaker 1: stock portion of the portfolio has gotten way above six 166 00:09:45,320 --> 00:09:48,960 Speaker 1: to you know, whatever it is currently after this melt up. 167 00:09:49,520 --> 00:09:51,760 Speaker 1: But the reason I bring it up is I helped 168 00:09:51,880 --> 00:09:56,040 Speaker 1: edit a story for the magazine last week talking about 169 00:09:55,400 --> 00:09:59,319 Speaker 1: sixty portfolios, and there's been sort of I wouldn't know 170 00:09:59,360 --> 00:10:01,520 Speaker 1: if i'd called it backlash, but a lot of people 171 00:10:01,559 --> 00:10:04,880 Speaker 1: on Wall Street out there saying sixty forty is not 172 00:10:05,040 --> 00:10:08,720 Speaker 1: the way to go going forward, given that treasury yields 173 00:10:08,760 --> 00:10:12,240 Speaker 1: are so low, no one really expects them to go negative, 174 00:10:12,320 --> 00:10:13,760 Speaker 1: and you know, so you could get that sort of 175 00:10:13,840 --> 00:10:17,840 Speaker 1: less leg of capital appreciation, and the stock market valuation 176 00:10:18,160 --> 00:10:21,040 Speaker 1: is so high that both of those are sort of 177 00:10:21,160 --> 00:10:25,440 Speaker 1: foreboding for for future returns. I mean, the obvious question 178 00:10:25,720 --> 00:10:28,320 Speaker 1: then is a tough one. What do you do to 179 00:10:28,360 --> 00:10:31,280 Speaker 1: replace a sixty forty? And I think that could be 180 00:10:31,600 --> 00:10:34,679 Speaker 1: the subject for about a five hour podcast. But I'm 181 00:10:34,720 --> 00:10:37,560 Speaker 1: just curious, from where you're sitting and talking to clients 182 00:10:37,559 --> 00:10:40,480 Speaker 1: of Edward Jones, has it reached the level of sort 183 00:10:40,480 --> 00:10:43,240 Speaker 1: of the individual investor yet that they're worried about the 184 00:10:43,280 --> 00:10:47,880 Speaker 1: classic approach to a stable, balanced portfolio like sixty forty? 185 00:10:47,960 --> 00:10:51,640 Speaker 1: Are they asking about alternatives about sort of you know, 186 00:10:51,960 --> 00:10:55,200 Speaker 1: taking a little more risk besides say an index fund 187 00:10:55,320 --> 00:10:58,400 Speaker 1: or or a real conservative mutual fund. Is there any 188 00:10:58,440 --> 00:11:01,839 Speaker 1: interest from sort of the mom and pop investors and 189 00:11:02,320 --> 00:11:06,720 Speaker 1: institutions even to go beyond sixty to say well, this 190 00:11:06,800 --> 00:11:08,920 Speaker 1: worked great for the last I don't know, forty years, 191 00:11:08,960 --> 00:11:14,760 Speaker 1: but yeah, yeah, however long you measure it. Is this 192 00:11:14,840 --> 00:11:18,280 Speaker 1: a false alarm? I guess to finish off my thirteen 193 00:11:18,320 --> 00:11:21,960 Speaker 1: part question, it's also a false false alarm about this 194 00:11:22,040 --> 00:11:25,440 Speaker 1: sort of the outlook for a sixty type of strategy 195 00:11:25,559 --> 00:11:29,160 Speaker 1: or is it worth considering sort of branching out and 196 00:11:29,200 --> 00:11:33,160 Speaker 1: looking at some alternatives. It is a real placeholder of 197 00:11:33,360 --> 00:11:37,080 Speaker 1: perspective for clients. I will say that, look, we are 198 00:11:37,240 --> 00:11:40,240 Speaker 1: in this current environment that is likely to stay with 199 00:11:40,320 --> 00:11:43,120 Speaker 1: us for a long time of lower for longer interest rates. 200 00:11:43,360 --> 00:11:45,800 Speaker 1: And we thought they couldn't go any lower. They actually 201 00:11:45,800 --> 00:11:49,480 Speaker 1: went lower in and they're likely to stay there longer. 202 00:11:49,559 --> 00:11:51,959 Speaker 1: If you really think about what the Federal Reserve has 203 00:11:52,040 --> 00:11:55,600 Speaker 1: done cutting rates near zero. Yes, okay, that's the first thing, 204 00:11:55,920 --> 00:11:59,200 Speaker 1: But then introducing a whole new concept, a whole new 205 00:11:59,280 --> 00:12:03,120 Speaker 1: level of flex ability in terms of saying, we are 206 00:12:03,160 --> 00:12:06,480 Speaker 1: not going to start raising interest rates as soon as 207 00:12:06,520 --> 00:12:09,960 Speaker 1: we see inflation creep up to two. We're actually gonna 208 00:12:10,040 --> 00:12:12,080 Speaker 1: let it creep up, and we're gonna let it creep 209 00:12:12,160 --> 00:12:16,320 Speaker 1: up for some unspecified amount of time. What that basically did, 210 00:12:16,800 --> 00:12:20,119 Speaker 1: um when the FED announced that last week average inflation 211 00:12:20,480 --> 00:12:23,960 Speaker 1: targeting policy, said we're going to keep interest rates, short 212 00:12:24,040 --> 00:12:27,200 Speaker 1: term rates very low for a very long time past 213 00:12:28,640 --> 00:12:31,959 Speaker 1: and perhaps even longer. And so what that says to 214 00:12:32,080 --> 00:12:34,680 Speaker 1: clients is, WHOA how am I going to get income 215 00:12:34,679 --> 00:12:37,160 Speaker 1: on my bonds that are paying me nothing? And so 216 00:12:37,400 --> 00:12:41,120 Speaker 1: bonds have really two purposes, right, One is for income 217 00:12:41,240 --> 00:12:45,040 Speaker 1: and the second is to cushion against volatility, and both 218 00:12:45,080 --> 00:12:48,960 Speaker 1: of them are. The income one is for sure lower 219 00:12:49,040 --> 00:12:52,920 Speaker 1: when you have lower yields, but also the volatility cushion 220 00:12:53,280 --> 00:12:55,920 Speaker 1: isn't as strong as if you can't see the interest 221 00:12:56,000 --> 00:13:00,000 Speaker 1: rate decline a thousand basis points like like we've seen 222 00:13:00,160 --> 00:13:03,480 Speaker 1: under certain economic environments, there's not a lot of room 223 00:13:03,520 --> 00:13:06,080 Speaker 1: to move for interest rates to go lower. So the 224 00:13:06,160 --> 00:13:08,959 Speaker 1: question is how do I get that kind of growth? 225 00:13:09,000 --> 00:13:10,760 Speaker 1: How do I get that kind of yield, and this 226 00:13:10,840 --> 00:13:15,080 Speaker 1: is why diversification matters. When you see a move like 227 00:13:15,160 --> 00:13:18,560 Speaker 1: you have seen recently with a text sell off, it's 228 00:13:18,600 --> 00:13:22,559 Speaker 1: important not to abandon that growth strategy because you're going 229 00:13:22,600 --> 00:13:25,480 Speaker 1: to need it in your portfolio. This is an environment 230 00:13:25,520 --> 00:13:29,079 Speaker 1: where you have to play both offense and defense because 231 00:13:29,080 --> 00:13:31,160 Speaker 1: you're going to see volatility, So you need to have 232 00:13:31,200 --> 00:13:36,120 Speaker 1: some defensiveness in your portfolio. That's fixed income, that's utilities, 233 00:13:36,200 --> 00:13:38,920 Speaker 1: that's consumer staples, which you're going to have to play offense. 234 00:13:39,120 --> 00:13:42,040 Speaker 1: And the last thing I'll say is people who get 235 00:13:42,040 --> 00:13:46,040 Speaker 1: close to retirement think, oh wow, I'm going into retirement 236 00:13:46,200 --> 00:13:49,680 Speaker 1: my distribution stage of life. I need to really pay 237 00:13:49,720 --> 00:13:53,400 Speaker 1: attention to markets now. And I think what gets lost 238 00:13:53,440 --> 00:13:57,120 Speaker 1: in that thought process is that you could spend twenty 239 00:13:57,120 --> 00:14:00,080 Speaker 1: five years in retirement. Uh. If you think that there 240 00:14:00,120 --> 00:14:02,760 Speaker 1: was a bear market every three to four years, you 241 00:14:02,760 --> 00:14:06,800 Speaker 1: could see eight bear markets in retirement. So so to 242 00:14:06,920 --> 00:14:09,679 Speaker 1: give up on growth too early could be a mistake 243 00:14:09,760 --> 00:14:12,920 Speaker 1: for your long term enjoyment of your retirement. Eight bear 244 00:14:13,000 --> 00:14:16,439 Speaker 1: markets sure, and retirement is not by that that you're 245 00:14:17,440 --> 00:14:20,280 Speaker 1: going into retirement. No, I'm never going to retire. That's 246 00:14:20,320 --> 00:14:23,240 Speaker 1: the only solution retire. You know, Mike, I think Nila 247 00:14:23,320 --> 00:14:26,040 Speaker 1: needed more patients though for that question you asked than 248 00:14:26,280 --> 00:14:30,320 Speaker 1: stock investors maybe needed all year that it was the 249 00:14:30,320 --> 00:14:34,040 Speaker 1: long one. She answered, that's not bad. That's that I'd 250 00:14:34,040 --> 00:14:35,720 Speaker 1: give it an a plus. Nila, I do want to 251 00:14:35,720 --> 00:14:37,680 Speaker 1: ask you a hypothetical though, and kind of put you 252 00:14:37,720 --> 00:14:39,960 Speaker 1: on the spot. Oh, that wasn't putting me on the 253 00:14:40,000 --> 00:14:45,200 Speaker 1: spot just now with Mike, Okay, the entire time, Nila 254 00:14:45,280 --> 00:14:48,880 Speaker 1: lives on the spot. Right. So it's very early on. 255 00:14:49,280 --> 00:14:51,520 Speaker 1: We don't know if this volatility that we have seen 256 00:14:51,600 --> 00:14:53,600 Speaker 1: is going to continue to the extent that we have 257 00:14:53,680 --> 00:14:55,760 Speaker 1: seen what we saw towards the end of this past week. 258 00:14:56,360 --> 00:15:00,000 Speaker 1: If we were to see this continue, is it possible 259 00:15:00,000 --> 00:15:01,920 Speaker 1: old that we could see the Fed at its meeting 260 00:15:02,640 --> 00:15:06,240 Speaker 1: this month do something more or say something more to 261 00:15:06,320 --> 00:15:08,440 Speaker 1: try to ease the situation. And if they do, what 262 00:15:08,480 --> 00:15:12,320 Speaker 1: would that mean from a portfolio perspective? You know, there's 263 00:15:12,480 --> 00:15:15,160 Speaker 1: a variety of ways to answer that question. I'm going 264 00:15:15,200 --> 00:15:17,720 Speaker 1: to answer it this way. I would like to think, 265 00:15:17,760 --> 00:15:19,640 Speaker 1: and I do believe this, that the Fed will not 266 00:15:19,720 --> 00:15:23,080 Speaker 1: be swayed by market moves. They know that they have 267 00:15:23,240 --> 00:15:26,920 Speaker 1: done what they intended to do by their action, which 268 00:15:26,960 --> 00:15:30,080 Speaker 1: is to add liquidity to the market and to improve 269 00:15:30,160 --> 00:15:33,400 Speaker 1: credit market functioning, so we could continue to see the 270 00:15:33,400 --> 00:15:38,080 Speaker 1: flow of credit to hard hit consumers and businesses. Beyond that, 271 00:15:38,160 --> 00:15:41,680 Speaker 1: to change policy to make sure that markets keep climbing 272 00:15:41,880 --> 00:15:44,480 Speaker 1: is not part of the two pronged mandate that the 273 00:15:44,480 --> 00:15:48,800 Speaker 1: FAN has. That mandate is to price stability and and 274 00:15:49,200 --> 00:15:52,760 Speaker 1: full employment. And so what I hope you see is 275 00:15:52,920 --> 00:15:55,720 Speaker 1: what's in that input function for the FED is the 276 00:15:55,800 --> 00:15:58,920 Speaker 1: unemployment rate, which is still very high, and we know 277 00:15:59,000 --> 00:16:02,400 Speaker 1: it's higher for our minority groups. And so I think 278 00:16:02,440 --> 00:16:05,160 Speaker 1: what the FETE is doing actually is really taking a 279 00:16:05,200 --> 00:16:09,200 Speaker 1: deep look into its practices of full employment and making 280 00:16:09,240 --> 00:16:11,880 Speaker 1: sure that that is as broad based and reaches as 281 00:16:11,920 --> 00:16:15,400 Speaker 1: many communities as possible. What you might see, though, the 282 00:16:15,520 --> 00:16:19,400 Speaker 1: volatility do in terms of actors is to nudge Congress, 283 00:16:19,440 --> 00:16:22,360 Speaker 1: which is sitting on a fifth round of stimulus that 284 00:16:22,720 --> 00:16:25,520 Speaker 1: you know, we're gonna quibble over these numbers. But if 285 00:16:25,520 --> 00:16:28,800 Speaker 1: the Republicans initial bid was a trillion dollars in new 286 00:16:28,880 --> 00:16:32,400 Speaker 1: stimulus and the Democrats was three trillion, look, it's still 287 00:16:32,480 --> 00:16:36,360 Speaker 1: a trillion dollars in stimulus. That's a lot of stimulus 288 00:16:36,800 --> 00:16:41,080 Speaker 1: and Act five of the bipartisan legislation would do so. Um, 289 00:16:41,120 --> 00:16:44,360 Speaker 1: I think that's what vulnerable households are waiting for. But 290 00:16:44,560 --> 00:16:47,560 Speaker 1: you might need a market nudge, unfortunately, to get policy 291 00:16:47,600 --> 00:16:49,920 Speaker 1: makers to that point. Yeah, that's a big bid esk 292 00:16:50,000 --> 00:16:52,840 Speaker 1: spread there between a trillion and three trillion, But you're right, 293 00:16:52,840 --> 00:16:55,400 Speaker 1: it's you know, starting with a high base. You know, Neila, 294 00:16:55,480 --> 00:16:58,320 Speaker 1: they say not to talk about religion and politics. I'm 295 00:16:58,320 --> 00:17:00,320 Speaker 1: not gonna ask you about religion, but you you did 296 00:17:00,320 --> 00:17:02,960 Speaker 1: bring up the politics, and I think we can't help 297 00:17:03,040 --> 00:17:05,399 Speaker 1: but have to talk about it these days. Uh, the 298 00:17:05,440 --> 00:17:08,400 Speaker 1: election coming up in November. Um, we've had a few 299 00:17:08,440 --> 00:17:12,840 Speaker 1: stories out at Bloomberg talking about the way people are 300 00:17:12,840 --> 00:17:15,240 Speaker 1: sort of trying to hedge the event risk of the election. 301 00:17:15,560 --> 00:17:21,000 Speaker 1: Really almost unprecedented hedging taking place across all asset classes. 302 00:17:21,560 --> 00:17:25,760 Speaker 1: But you know, how do you communicate to clients about 303 00:17:25,840 --> 00:17:30,000 Speaker 1: the risks and opportunities ahead of the election. Um? Does 304 00:17:30,040 --> 00:17:33,040 Speaker 1: it make sense to sort of take some risk off 305 00:17:33,040 --> 00:17:36,119 Speaker 1: the table to to try to sort of, you know, 306 00:17:36,480 --> 00:17:38,639 Speaker 1: book some profits ahead of the election or is is 307 00:17:38,680 --> 00:17:41,040 Speaker 1: that a fool's errand to try to do that given 308 00:17:41,840 --> 00:17:43,960 Speaker 1: how how this market has just been melting up anyway. 309 00:17:44,280 --> 00:17:47,440 Speaker 1: You know, we've had one and very consistent message about 310 00:17:47,480 --> 00:17:52,520 Speaker 1: elections and election years, even elections in UH don't play 311 00:17:52,640 --> 00:17:56,600 Speaker 1: politics with your portfolio. I'm gonna grant a number of things. 312 00:17:56,640 --> 00:18:00,359 Speaker 1: I'm going to grant that we've seen an unprecedented prize 313 00:18:00,400 --> 00:18:02,760 Speaker 1: this year in terms of the pandemic. I'm also going 314 00:18:02,800 --> 00:18:06,000 Speaker 1: to grant that this is a very divisive election where 315 00:18:06,280 --> 00:18:11,800 Speaker 1: because exacerbated by the pandemic, you're seeing social upheaval. You're 316 00:18:11,800 --> 00:18:16,040 Speaker 1: seeing racial injustices being protested in the streets. You're seeing 317 00:18:16,560 --> 00:18:22,200 Speaker 1: higher than ever before, jobless numbers g d P declining 318 00:18:22,440 --> 00:18:24,520 Speaker 1: by the most since the Great Depression. So there's a 319 00:18:24,560 --> 00:18:28,800 Speaker 1: lot going in to a vote in November this time around. 320 00:18:29,080 --> 00:18:32,880 Speaker 1: But if you look historically, it really doesn't matter over 321 00:18:32,920 --> 00:18:37,119 Speaker 1: the long term who controls Congress, who controls the White House. 322 00:18:37,480 --> 00:18:42,280 Speaker 1: UH stocks have performed on average ten percent regardless of 323 00:18:42,560 --> 00:18:46,160 Speaker 1: who controlled what in Washington. And I know I lived 324 00:18:46,200 --> 00:18:50,919 Speaker 1: in Washington for fifteen years. It's full of very important 325 00:18:50,960 --> 00:18:53,159 Speaker 1: and very self important people. So I know that this 326 00:18:53,240 --> 00:18:55,280 Speaker 1: is going to be heart wrenching to know that they 327 00:18:55,280 --> 00:18:59,399 Speaker 1: don't control everything in the economy. But it's really economic 328 00:18:59,440 --> 00:19:03,399 Speaker 1: and corporate fundamentals that matter the most for a rally, 329 00:19:03,560 --> 00:19:05,800 Speaker 1: so any reaction we see, and I do think we'll 330 00:19:05,800 --> 00:19:09,439 Speaker 1: see a reaction to the November when it's likely to 331 00:19:09,480 --> 00:19:11,840 Speaker 1: be short lived. It's likely to be a knee jerk 332 00:19:11,920 --> 00:19:15,560 Speaker 1: reaction to what's going on, and it's likely to wash 333 00:19:15,600 --> 00:19:34,840 Speaker 1: out over the longer term. I do always wonder what 334 00:19:34,920 --> 00:19:38,359 Speaker 1: that said, with the amount of research notes that landed 335 00:19:38,400 --> 00:19:41,520 Speaker 1: my email in box this time of year, how much 336 00:19:41,560 --> 00:19:45,840 Speaker 1: are people just almost forced to comment on election volatility 337 00:19:45,960 --> 00:19:48,280 Speaker 1: because it's coming up, because it's a talking point, and 338 00:19:48,320 --> 00:19:50,880 Speaker 1: you just have to have something to say. If you're 339 00:19:50,880 --> 00:19:54,080 Speaker 1: a strategist or if you're a financial adviser. Well, I'm 340 00:19:54,119 --> 00:19:56,800 Speaker 1: always warried of being prompted to say something I don't 341 00:19:56,880 --> 00:20:00,560 Speaker 1: have anything to say about. That's not a good But 342 00:20:00,840 --> 00:20:04,119 Speaker 1: I think there is also a difference between policy and politics, 343 00:20:04,200 --> 00:20:07,119 Speaker 1: and we conflate the two all the time. But you 344 00:20:07,160 --> 00:20:11,520 Speaker 1: can talk about policy. Policy has an effect on companies. 345 00:20:11,840 --> 00:20:14,639 Speaker 1: It has a disproportionate effect, and so the nuance is 346 00:20:14,640 --> 00:20:19,239 Speaker 1: actually really interesting. But it's not a headline, it's not 347 00:20:19,359 --> 00:20:22,800 Speaker 1: a talking point that's easily given. It's so much easier 348 00:20:22,840 --> 00:20:27,280 Speaker 1: to just make this bipartisan reference to Republicans, Democrats, Biden, 349 00:20:27,320 --> 00:20:30,880 Speaker 1: Trump instead of digging into the policy details, because that's 350 00:20:30,880 --> 00:20:33,480 Speaker 1: where the devil lies, and the devil is what controls 351 00:20:33,520 --> 00:20:38,320 Speaker 1: the outcomes, Uh unfortunately in some of this policy legislation. 352 00:20:38,440 --> 00:20:40,920 Speaker 1: So it's really digging into those details and seeing how 353 00:20:40,960 --> 00:20:44,119 Speaker 1: that affects particular sectors and who benefits and wins. And 354 00:20:44,160 --> 00:20:46,600 Speaker 1: that's hard work. I think we got the headline there, 355 00:20:46,600 --> 00:20:51,360 Speaker 1: Sarah Nili says, the devil's in charge. You know, as 356 00:20:51,440 --> 00:20:53,960 Speaker 1: much as I try, I can't get the headline right. 357 00:20:58,000 --> 00:21:02,080 Speaker 1: You you are very good at at uncovering the best headlines. 358 00:21:03,600 --> 00:21:09,000 Speaker 1: That's that's our job. But I guess from a sector standpoint, 359 00:21:09,040 --> 00:21:11,800 Speaker 1: maybe it makes sense to pay closer to the election, right. 360 00:21:11,800 --> 00:21:14,359 Speaker 1: I mean, you got Biden is a clean energy guy. 361 00:21:14,480 --> 00:21:16,840 Speaker 1: Trump's a dirty energy guy, and you know you could 362 00:21:16,840 --> 00:21:20,080 Speaker 1: you could go down the list. Um is even that 363 00:21:20,160 --> 00:21:22,680 Speaker 1: fullist you think to try to game that too much? Mike, 364 00:21:22,720 --> 00:21:27,120 Speaker 1: I would never say anything you said was foolish. But 365 00:21:27,119 --> 00:21:31,480 Speaker 1: but I I know because I was a gut I 366 00:21:31,560 --> 00:21:35,120 Speaker 1: was a government economist. I worked on the Dodd Frank legislation, 367 00:21:35,280 --> 00:21:38,439 Speaker 1: and I know firsthand that what is promised on the 368 00:21:38,480 --> 00:21:41,760 Speaker 1: campaign trail looks a lot different by the time it 369 00:21:41,800 --> 00:21:46,360 Speaker 1: makes its way through Congress and into the government agencies 370 00:21:46,640 --> 00:21:51,160 Speaker 1: which actually right and enact law. So again, then first response, 371 00:21:51,240 --> 00:21:55,320 Speaker 1: the knee jerk response, it's it's too early, it's short lived. 372 00:21:55,600 --> 00:21:58,240 Speaker 1: Seeing how these policies play out as they moved through 373 00:21:58,280 --> 00:22:01,960 Speaker 1: the democratic process is what's really important. This is why 374 00:22:01,960 --> 00:22:05,200 Speaker 1: we're so lucky to have someone like you on the show. Alright, Mike, 375 00:22:05,320 --> 00:22:09,080 Speaker 1: I I think it's that time, though, Is it time? Okay? Nearly? 376 00:22:09,200 --> 00:22:10,840 Speaker 1: I know you're a veteran of the show, and you 377 00:22:10,880 --> 00:22:13,960 Speaker 1: know it's time for the craziest thing. Stand clear of 378 00:22:14,040 --> 00:22:18,440 Speaker 1: the craziest things we saw in markets this week? All right, well, 379 00:22:18,480 --> 00:22:22,240 Speaker 1: I'll give you Emily Barrett's oar calliguet. Emily Barrett gave 380 00:22:22,400 --> 00:22:25,600 Speaker 1: us this one via Marty Frisden. So the year to 381 00:22:25,680 --> 00:22:29,160 Speaker 1: date return on high yield debt turned positive in August, 382 00:22:29,320 --> 00:22:32,920 Speaker 1: and the distress ratio, that is the percentage of bonds 383 00:22:33,119 --> 00:22:37,360 Speaker 1: yielding greater than one thousand basis points over treasuries hit 384 00:22:37,440 --> 00:22:41,720 Speaker 1: an all time low for recession. That's kind of a mouthful, 385 00:22:41,760 --> 00:22:43,440 Speaker 1: but I guess that is a that is a pretty 386 00:22:43,440 --> 00:22:48,200 Speaker 1: crazy thing. I guess not that surprising giving the purchases 387 00:22:48,280 --> 00:22:51,480 Speaker 1: the Feds making in the in the corporate bond market. Um. 388 00:22:51,520 --> 00:22:53,359 Speaker 1: But now, how do you pay close attention to the 389 00:22:53,359 --> 00:22:55,800 Speaker 1: credit markets? Uh? You know, as far as trying to 390 00:22:55,840 --> 00:22:59,359 Speaker 1: suss out the prospects for the stock market. You know, 391 00:22:59,560 --> 00:23:05,840 Speaker 1: I I did. But the credit the fixed income markets 392 00:23:05,840 --> 00:23:09,879 Speaker 1: have been so appeased by the Fed. I mean, there's 393 00:23:09,920 --> 00:23:13,720 Speaker 1: been a remarkable level of stability. So if they're telling 394 00:23:13,800 --> 00:23:16,000 Speaker 1: us anything, they're telling us the same thing over and 395 00:23:16,040 --> 00:23:18,920 Speaker 1: over and over and over over again right now. Um, 396 00:23:19,320 --> 00:23:22,520 Speaker 1: So it's really a disconnect from what we're seeing in 397 00:23:22,600 --> 00:23:25,280 Speaker 1: terms of Riley. The fixed income markets are staying high. 398 00:23:25,480 --> 00:23:29,160 Speaker 1: I mean, we might see some courage stepening, but they 399 00:23:29,160 --> 00:23:33,520 Speaker 1: are at high levels and their price for the economy 400 00:23:33,600 --> 00:23:37,679 Speaker 1: that we're in, whereas stock markets continue to drive towards 401 00:23:37,800 --> 00:23:40,480 Speaker 1: the economy we hope to be in a year or 402 00:23:40,520 --> 00:23:42,960 Speaker 1: two from now. All Right, Neil, Well, Sarah dropped the 403 00:23:43,000 --> 00:23:46,720 Speaker 1: ball on the craziest thing. I'm really sorry, guys. Yeah, 404 00:23:47,280 --> 00:23:49,600 Speaker 1: that means I'm the winner again, I guess, unless Nila 405 00:23:49,680 --> 00:23:53,000 Speaker 1: you can come through with with something. Uh for us here, 406 00:23:53,119 --> 00:23:55,760 Speaker 1: you have you seen anything crazy this week? I've seen 407 00:23:55,800 --> 00:23:58,800 Speaker 1: a lot of things crazy this week. Uh, schools just 408 00:23:58,880 --> 00:24:03,520 Speaker 1: reopened in Jersey, enough said, but nothing market related, that's 409 00:24:03,520 --> 00:24:06,960 Speaker 1: popping popping to mind. Sorry, Mike, you know what, I 410 00:24:07,000 --> 00:24:08,600 Speaker 1: actually know, you know what. I do have one. I 411 00:24:08,640 --> 00:24:13,080 Speaker 1: do have one. I'm sorry. So there was a lot 412 00:24:13,119 --> 00:24:18,200 Speaker 1: of focus on the spread in implied volatility markets this week. 413 00:24:18,240 --> 00:24:21,040 Speaker 1: If you look at implied volatility for the NAZAC one 414 00:24:21,280 --> 00:24:25,600 Speaker 1: d compared to implied volatility for the smp SO, VX 415 00:24:25,720 --> 00:24:31,080 Speaker 1: and minus vix at the highest spread in sixteen years. Um. 416 00:24:31,160 --> 00:24:34,360 Speaker 1: And this was happening leading up to the trading day 417 00:24:34,359 --> 00:24:37,240 Speaker 1: on Thursday, which is kind of when we saw this 418 00:24:37,359 --> 00:24:41,360 Speaker 1: complete unraveled, the NASDAC down more than five per cent. 419 00:24:42,040 --> 00:24:44,840 Speaker 1: And there are a lot of theories kind of tussling 420 00:24:44,920 --> 00:24:49,119 Speaker 1: around about why this is was implied vall for the 421 00:24:49,200 --> 00:24:52,719 Speaker 1: NAZAC so high because people were hedging against something like this, 422 00:24:52,840 --> 00:24:57,200 Speaker 1: or does it have to do with some serious out 423 00:24:57,200 --> 00:24:59,840 Speaker 1: of the money call options that were being placed forcing 424 00:24:59,880 --> 00:25:02,320 Speaker 1: to there's a hedge. Um, so pretty crazy. And it's 425 00:25:02,320 --> 00:25:04,280 Speaker 1: also it's it's gotten a lot of focus this week. 426 00:25:04,840 --> 00:25:06,639 Speaker 1: That's pretty good. Is it? Is it those guys on 427 00:25:06,720 --> 00:25:10,320 Speaker 1: Reddit again doing maybe if one of them listens they're 428 00:25:10,320 --> 00:25:12,400 Speaker 1: gonna maybe if one of them listens, you can give 429 00:25:12,480 --> 00:25:14,760 Speaker 1: us a call at our podcast outline and leave us 430 00:25:14,760 --> 00:25:18,400 Speaker 1: a message and let us know to you those characters 431 00:25:18,400 --> 00:25:20,119 Speaker 1: are acted up again. All right. I know Neil has 432 00:25:20,119 --> 00:25:21,640 Speaker 1: got to leave us soon, so I'm gonna go through 433 00:25:21,680 --> 00:25:23,679 Speaker 1: mine quickly. So I thought this was gonna be the 434 00:25:23,680 --> 00:25:25,879 Speaker 1: first time where I would take both gold and silver 435 00:25:26,000 --> 00:25:28,960 Speaker 1: in uh craziest things. But you came through there. You 436 00:25:29,240 --> 00:25:31,239 Speaker 1: came through at the last minute. But let me give 437 00:25:31,280 --> 00:25:35,640 Speaker 1: you mine once again in the alternative assets space. And sorry, 438 00:25:35,680 --> 00:25:37,480 Speaker 1: you're a millennial, so I often go to you to 439 00:25:37,560 --> 00:25:40,679 Speaker 1: make sense of of millennial stuff for me. Is it 440 00:25:40,760 --> 00:25:44,400 Speaker 1: true you guys are all crazy about house plants? Um, 441 00:25:44,480 --> 00:25:46,760 Speaker 1: I can tell you that I have a fake six 442 00:25:46,800 --> 00:25:49,560 Speaker 1: foot fight histry sitting in the corner of my apartment 443 00:25:49,640 --> 00:25:51,480 Speaker 1: right now. It's not a real house plant, but it 444 00:25:51,480 --> 00:25:54,119 Speaker 1: does look like one. So yes, we do love house plants. 445 00:25:56,560 --> 00:25:58,520 Speaker 1: All right. Let me tell you about this house plant 446 00:25:58,520 --> 00:26:01,679 Speaker 1: in New Zealand. I'll left the New York Post headline, 447 00:26:01,920 --> 00:26:05,800 Speaker 1: Uh really explains it all. Headline is some sucker in 448 00:26:05,880 --> 00:26:09,240 Speaker 1: New Zealand just spent five thousand dollars on a house plant. 449 00:26:09,920 --> 00:26:13,320 Speaker 1: And apparently there's something called a mini Monstera which is 450 00:26:13,359 --> 00:26:17,159 Speaker 1: a very fancy house plant that they've seen all sorts 451 00:26:17,200 --> 00:26:21,240 Speaker 1: of interest in some auction site. House plant. Auction site 452 00:26:22,000 --> 00:26:25,719 Speaker 1: has had more than thirty three thousand searches for this 453 00:26:25,840 --> 00:26:28,480 Speaker 1: five thousand dollar house plant, and the post did the 454 00:26:28,520 --> 00:26:31,239 Speaker 1: math for us um it doesn't have many leaves on it, 455 00:26:31,359 --> 00:26:33,679 Speaker 1: so they said, if anyone counting that breaks down to 456 00:26:33,760 --> 00:26:38,400 Speaker 1: about per leaf, I can't say that I would spend 457 00:26:38,400 --> 00:26:40,600 Speaker 1: that much on a house plant. Mine was about sixty 458 00:26:40,640 --> 00:26:43,800 Speaker 1: dollars off of Amazon um. But people have different tastes, right, 459 00:26:44,560 --> 00:26:47,920 Speaker 1: Maybe he should start making the fake Monstera plants that 460 00:26:48,000 --> 00:26:52,640 Speaker 1: that could be uh A little side. Okay, one other 461 00:26:52,680 --> 00:26:57,320 Speaker 1: alternative asset class In California, with all the wildfires, private 462 00:26:57,359 --> 00:27:00,080 Speaker 1: citizens are now buying fire trucks again, according to a 463 00:27:00,160 --> 00:27:02,200 Speaker 1: New York Post with you know, the paper of record 464 00:27:02,240 --> 00:27:06,560 Speaker 1: for crazy things, but they say, concerned over destructive wildfires, 465 00:27:07,200 --> 00:27:10,919 Speaker 1: California residents are going to Kreigslist, the ultimate over the 466 00:27:10,960 --> 00:27:15,400 Speaker 1: counter market, to buy fire trucks from a Sacramento company 467 00:27:15,480 --> 00:27:19,720 Speaker 1: called Vans from Japan, including a sixty nine thousand dollar 468 00:27:20,440 --> 00:27:24,880 Speaker 1: peer built water truck. What's become of the world when 469 00:27:25,000 --> 00:27:27,800 Speaker 1: private citizens have to buy their own fire trucks. This 470 00:27:27,880 --> 00:27:30,639 Speaker 1: is distressing idea that what's going on in California is 471 00:27:30,680 --> 00:27:32,359 Speaker 1: so sad. But we can always kind on Mike to 472 00:27:32,400 --> 00:27:35,159 Speaker 1: come to us with the alternative investment strategies. Next thing 473 00:27:35,160 --> 00:27:38,200 Speaker 1: you know, Nila, someone asks you about sixty, you're gonna say, O, 474 00:27:38,200 --> 00:27:40,480 Speaker 1: why don't you go buy him on Sarah plant or 475 00:27:40,560 --> 00:27:45,960 Speaker 1: maybe and a fire truck the ultimate and diversified assets. 476 00:27:45,760 --> 00:27:47,600 Speaker 1: That's that's a free one for you, Nila. You can 477 00:27:47,720 --> 00:27:55,200 Speaker 1: use that you well. I mentioned our podcast hotline. Remember 478 00:27:55,200 --> 00:27:56,600 Speaker 1: if you give us a call, when may play a 479 00:27:56,600 --> 00:27:58,360 Speaker 1: message on the show. If you leave one, it's six 480 00:27:58,480 --> 00:28:02,320 Speaker 1: or six three to four three for nine zero And 481 00:28:02,400 --> 00:28:04,120 Speaker 1: unfortunately we are going to have to leave it there. 482 00:28:04,119 --> 00:28:06,359 Speaker 1: Soney La Richardson, thank you so much for coming on 483 00:28:06,359 --> 00:28:08,920 Speaker 1: the show today. Thanks for having me. It's always great 484 00:28:08,920 --> 00:28:20,280 Speaker 1: to talk with you too. What goes up. We'll be 485 00:28:20,320 --> 00:28:23,199 Speaker 1: back next week. Until then, you can find us on 486 00:28:23,240 --> 00:28:26,320 Speaker 1: the Bloomberg Terminal website and app or wherever you get 487 00:28:26,359 --> 00:28:28,880 Speaker 1: your podcasts. We love it if you took the time 488 00:28:28,880 --> 00:28:31,439 Speaker 1: to rate and review the show on Apple Podcasts so 489 00:28:31,560 --> 00:28:34,160 Speaker 1: more listeners can find us and You can find us 490 00:28:34,160 --> 00:28:37,680 Speaker 1: on Twitter, follow me at at Sarah pont Seck, Mike 491 00:28:37,960 --> 00:28:41,520 Speaker 1: is that Reaganonymous, and you can also follow Bloomberg Podcasts 492 00:28:41,560 --> 00:28:44,360 Speaker 1: at podcasts. Of course, thank you to Charlie Pellett of 493 00:28:44,360 --> 00:28:46,840 Speaker 1: Bloomberg Radio and the voice of the New York City 494 00:28:46,880 --> 00:28:50,600 Speaker 1: Subway System. What Goes Up is produced by Jordan Gospore. 495 00:28:51,000 --> 00:28:54,640 Speaker 1: The head of Bloomberg podcast is brincesco Levie. Thanks for listening, 496 00:28:54,760 --> 00:28:55,520 Speaker 1: See you next time.