1 00:00:03,160 --> 00:00:07,760 Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C, 2 00:00:07,960 --> 00:00:13,520 Speaker 1: Bloomberg to Boston, Bloomberg twelve to San Francisco, Bloomberg nine 3 00:00:14,080 --> 00:00:17,720 Speaker 1: to the Country shoes A Channel one nine and around 4 00:00:17,760 --> 00:00:20,960 Speaker 1: the globe the Bloomberg Radio, PLAUSAP and Bloomberg dot Com. 5 00:00:21,400 --> 00:00:25,680 Speaker 1: This is Taking Stock. Coming up on taking stock making 6 00:00:25,720 --> 00:00:29,600 Speaker 1: decisions about your money. We'll talk about motivation that healthy 7 00:00:29,680 --> 00:00:35,200 Speaker 1: financial relationship, behavioral economics, coaching, as well as therapy techniques 8 00:00:35,280 --> 00:00:38,120 Speaker 1: and how to do real good research called Barks for Me. 9 00:00:38,200 --> 00:00:41,159 Speaker 1: Joining us from Boston based actually well, the mass based 10 00:00:41,280 --> 00:00:45,320 Speaker 1: Commonwealth Financial Network. As we continue our special live broadcast 11 00:00:45,360 --> 00:00:48,720 Speaker 1: today here at Smith and Williski Restaurant right down on 12 00:00:48,880 --> 00:00:52,040 Speaker 1: the Boston Harbor, Let's get back to the newsroom in 13 00:00:52,200 --> 00:00:55,080 Speaker 1: the World headquarters. Charlie Pellett's got a Bloomberg business flash 14 00:00:55,200 --> 00:00:56,920 Speaker 1: and I thank you very much. Kathleen, thank you him. 15 00:00:56,920 --> 00:00:59,360 Speaker 1: The Dow just turning negative, down a point right now, 16 00:00:59,680 --> 00:01:02,680 Speaker 1: as P five hundred index a little change, giving up 17 00:01:02,680 --> 00:01:06,200 Speaker 1: earlier gains. The SMP five hundred index is higher. It 18 00:01:06,400 --> 00:01:09,679 Speaker 1: is on track to snap a two day losing streak 19 00:01:10,000 --> 00:01:13,959 Speaker 1: as rebounding crude prices spurs rally and energy producers, while 20 00:01:14,040 --> 00:01:18,279 Speaker 1: corporate earnings help whose financial companies. West Texas Intermediate crude 21 00:01:18,360 --> 00:01:21,240 Speaker 1: up three point two percent of advancing a dollar seven 22 00:01:22,480 --> 00:01:24,960 Speaker 1: eight right now on w t I. Brent crude up 23 00:01:25,000 --> 00:01:29,360 Speaker 1: two point nine percent to affarel, the tenure up four 24 00:01:29,480 --> 00:01:33,480 Speaker 1: thirty seconds, the yield there one point five four. Michael 25 00:01:33,520 --> 00:01:36,800 Speaker 1: Purvis is chief global strategist at Weedman Company. He was 26 00:01:36,840 --> 00:01:40,640 Speaker 1: interviewed this morning on Bloomberg Surveillance. The real focal point 27 00:01:40,680 --> 00:01:43,800 Speaker 1: here is is that the role of central banking, the 28 00:01:43,920 --> 00:01:47,040 Speaker 1: role of the tenure, treasury yield in the equity equation 29 00:01:47,040 --> 00:01:49,920 Speaker 1: has become more and more dominant. And if there's a 30 00:01:50,000 --> 00:01:52,640 Speaker 1: reversal in that, right, if that, if that, if that, 31 00:01:53,040 --> 00:01:56,000 Speaker 1: uh cork explodes the other way and we have a 32 00:01:56,040 --> 00:01:59,000 Speaker 1: massive sell off and sovereign paper that is going to 33 00:01:59,640 --> 00:02:04,160 Speaker 1: um the you know, very disruptive to the equity framework 34 00:02:04,200 --> 00:02:07,320 Speaker 1: that is supporting a lot of these things. American International 35 00:02:07,360 --> 00:02:09,840 Speaker 1: Group is on track for its biggest jump in four 36 00:02:09,919 --> 00:02:13,799 Speaker 1: years after its profit beat estimates. Oil surging more than 37 00:02:13,840 --> 00:02:16,800 Speaker 1: three percent today. We've got a i G up seven 38 00:02:16,880 --> 00:02:20,840 Speaker 1: point two percent, up three seven to fifty eight O 39 00:02:21,120 --> 00:02:25,079 Speaker 1: two right now on a I G healthcare shares falling 40 00:02:25,120 --> 00:02:27,760 Speaker 1: for a second day, Biogen down more than four percent 41 00:02:27,760 --> 00:02:31,400 Speaker 1: of it doubts it could be a takeover target. SMP 42 00:02:31,600 --> 00:02:34,600 Speaker 1: five hundred index off a point to fifty seven. Again 43 00:02:34,639 --> 00:02:38,280 Speaker 1: there of point one percent. Goal down eighty beounced thirteen 44 00:02:38,360 --> 00:02:41,320 Speaker 1: fifty nine, a drop of point six percent. And now 45 00:02:41,400 --> 00:02:43,720 Speaker 1: let's take a look at the other stories making news. 46 00:02:44,919 --> 00:02:47,040 Speaker 1: Thank you Charlie from the Bloomberg news room. I'm rainey 47 00:02:47,120 --> 00:02:49,960 Speaker 1: in a cent cio. There's a report that senior Republican 48 00:02:50,000 --> 00:02:54,640 Speaker 1: officials are exploring options if Donald Trump quits the presidential race. 49 00:02:54,960 --> 00:02:57,359 Speaker 1: AC News says those officials believe that Trump is so 50 00:02:57,480 --> 00:03:00,920 Speaker 1: unpredictable he might withdraw. A new candidate would have to 51 00:03:00,919 --> 00:03:03,639 Speaker 1: be selected by one sixty eight members of the Republican 52 00:03:03,760 --> 00:03:07,280 Speaker 1: National Committee. White House Press Secretary Josh Ernest was asked 53 00:03:07,320 --> 00:03:11,520 Speaker 1: today about Trump's suggestion that November's presidential election could be rigged. 54 00:03:11,600 --> 00:03:13,760 Speaker 1: I would just note that it is often acclaim made 55 00:03:13,800 --> 00:03:16,560 Speaker 1: by people who don't end up winning elections. President Obama 56 00:03:16,680 --> 00:03:20,119 Speaker 1: is shortening the sentences for two hundred fourteen federal prisoners, 57 00:03:20,320 --> 00:03:24,639 Speaker 1: including sixties seven serving life sentences. It's the most commutations 58 00:03:24,639 --> 00:03:27,320 Speaker 1: in a single day in more than a century. Almost 59 00:03:27,360 --> 00:03:30,640 Speaker 1: all the prisoners were serving time for non violent drug offenses. 60 00:03:30,919 --> 00:03:35,040 Speaker 1: Most will be released December one. Dr Anthony Fauci, director 61 00:03:35,040 --> 00:03:38,200 Speaker 1: of the National Institute of Allergy and Infectious Diseases, says 62 00:03:38,320 --> 00:03:41,760 Speaker 1: the Zeke virus is unlikely to become a national epidemic 63 00:03:41,800 --> 00:03:44,440 Speaker 1: here in the US. It's unlikely that we are going 64 00:03:44,480 --> 00:03:48,160 Speaker 1: to have a broad, widely disseminated outbreak of ZEKEA in 65 00:03:48,200 --> 00:03:51,320 Speaker 1: the continental the United States, similar to what's happened in 66 00:03:51,360 --> 00:03:54,560 Speaker 1: Brazil and what is happening in Puerto Rico. At least 67 00:03:54,560 --> 00:03:57,800 Speaker 1: fifteen cases of zeke infections have been confirmed in an 68 00:03:57,840 --> 00:04:00,640 Speaker 1: area of Miami. They're believed to have been transmitted locally, 69 00:04:00,880 --> 00:04:03,320 Speaker 1: and New Jersey has received a half million dollars from 70 00:04:03,360 --> 00:04:06,560 Speaker 1: the CDC to help treat any ZEKEA infections and pregnant women. 71 00:04:06,720 --> 00:04:09,760 Speaker 1: The latest statewide count shows seventies six infected with ZEKA 72 00:04:10,000 --> 00:04:13,120 Speaker 1: after returning from travel overseas. Half of them are in 73 00:04:13,200 --> 00:04:16,080 Speaker 1: Bergen and Passaic Counties. Officials say there are no cases 74 00:04:16,120 --> 00:04:18,640 Speaker 1: of the infection being transmitted by mosquitoes and that the 75 00:04:18,640 --> 00:04:21,320 Speaker 1: species that carry the virus has not been found in 76 00:04:21,360 --> 00:04:23,679 Speaker 1: the state. Global News twenty four hours a day, powered 77 00:04:23,680 --> 00:04:26,479 Speaker 1: by more than journalists and analysts in more than one 78 00:04:26,560 --> 00:04:30,240 Speaker 1: hundred twenty countries. I'm Rainy and Essensio. This is Bloomberg, Charlie, 79 00:04:30,360 --> 00:04:33,000 Speaker 1: and we thank you. And again we've got stocks higher. 80 00:04:33,080 --> 00:04:35,719 Speaker 1: Tesla reporting after the closing bell up now by eight 81 00:04:35,720 --> 00:04:39,159 Speaker 1: tenths of one percent, SMP five Index up a point 82 00:04:39,160 --> 00:04:42,719 Speaker 1: again there of one tenth of one percent. I'm Charlie Palaton. 83 00:04:42,880 --> 00:04:46,919 Speaker 1: That's a Bloomberg business flash. This is taking stock with 84 00:04:47,080 --> 00:04:51,880 Speaker 1: them Fox and Kathleen Hayes on Bloomberg Radio for broadcasting 85 00:04:51,920 --> 00:04:54,920 Speaker 1: Life Today from Smith M. Lensky's near the Boston Harbor 86 00:04:54,960 --> 00:04:57,279 Speaker 1: in Boston Seaport District. So we can talk to people 87 00:04:57,360 --> 00:04:59,680 Speaker 1: like our next guest, So, how do you feel about 88 00:04:59,680 --> 00:05:01,920 Speaker 1: the market right now? How do you feel about your investments? 89 00:05:02,320 --> 00:05:04,920 Speaker 1: Do robo advisors make you feel better or worse? Well, 90 00:05:04,920 --> 00:05:07,520 Speaker 1: here to talk about what makes us think that way 91 00:05:07,640 --> 00:05:10,760 Speaker 1: and ways we can do with our own thinking. Caulbert 92 00:05:11,040 --> 00:05:15,000 Speaker 1: He is senior vice president, Technology Strategy and financial behavior 93 00:05:15,080 --> 00:05:18,680 Speaker 1: Specialist at the Commonwealth Financial Network. He's here in the 94 00:05:18,680 --> 00:05:21,800 Speaker 1: Boston area. H You may recall hearing him on the 95 00:05:21,800 --> 00:05:25,000 Speaker 1: show when we've gone to the Commonwealth Financial Annual Meeting. 96 00:05:25,080 --> 00:05:28,119 Speaker 1: Always a treat for us on taking stock cold Welcome 97 00:05:28,120 --> 00:05:29,680 Speaker 1: back to the show, Thanks so much for having me. 98 00:05:30,160 --> 00:05:34,080 Speaker 1: So your degree and uh, you're actually it's a master's 99 00:05:34,120 --> 00:05:38,520 Speaker 1: have applied positive psychology from the University of Pennsylvania. Uh, 100 00:05:38,560 --> 00:05:40,960 Speaker 1: A lot of people don't feel that positive right now, 101 00:05:41,000 --> 00:05:43,359 Speaker 1: and I honestly think robo advisors is one of the reason, 102 00:05:43,520 --> 00:05:46,560 Speaker 1: because maybe millennials feel better because I like to just 103 00:05:46,640 --> 00:05:48,680 Speaker 1: do things on their phones. But I think a lot 104 00:05:48,680 --> 00:05:52,119 Speaker 1: of people miss the human touch absolutely, and I actually 105 00:05:52,160 --> 00:05:54,400 Speaker 1: think millennials missed the human touch too. One of the 106 00:05:54,520 --> 00:05:57,240 Speaker 1: things that I think is missed in working with millennials 107 00:05:57,360 --> 00:06:00,280 Speaker 1: is the fact that they do want wise advice. They 108 00:06:00,320 --> 00:06:03,520 Speaker 1: may want it through an instant message or a text 109 00:06:03,680 --> 00:06:06,000 Speaker 1: or you know, a video chat or something else where. 110 00:06:06,000 --> 00:06:08,120 Speaker 1: It's they're not having to actually go to your office, 111 00:06:08,520 --> 00:06:10,600 Speaker 1: but they do want someone that they can rely on. 112 00:06:11,800 --> 00:06:16,440 Speaker 1: How do you how do you identify fear based attitudes 113 00:06:16,839 --> 00:06:21,440 Speaker 1: and behaviors? Well, I think that there are ways that 114 00:06:21,480 --> 00:06:24,159 Speaker 1: you can identify it, certainly in person when you see 115 00:06:24,440 --> 00:06:27,560 Speaker 1: different facial expressions and when you see different body postures, 116 00:06:27,960 --> 00:06:30,760 Speaker 1: and there are incredible techniques that are just so easy 117 00:06:30,800 --> 00:06:34,240 Speaker 1: to use. Like whether it's a doctor or financial advised 118 00:06:34,320 --> 00:06:36,560 Speaker 1: or any professional when they see this type of behavior, 119 00:06:36,600 --> 00:06:38,880 Speaker 1: One thing that they should know is that there are 120 00:06:38,880 --> 00:06:42,640 Speaker 1: actually two nervous systems in the body. One system is 121 00:06:42,680 --> 00:06:45,160 Speaker 1: that fight and flight nervous system. And when I'm in 122 00:06:45,200 --> 00:06:47,240 Speaker 1: that state, that's called the sympathetic. When I'm in the 123 00:06:47,279 --> 00:06:51,119 Speaker 1: sympathetic nervous system, I actually can't think rationally. It's only 124 00:06:51,120 --> 00:06:55,000 Speaker 1: in the parasympathetic with psychologists nicknamed the rest and digest 125 00:06:55,120 --> 00:06:58,839 Speaker 1: system that I can think rationally and make wise decisions. 126 00:06:59,040 --> 00:07:00,840 Speaker 1: And so when an advised or or a doctor or 127 00:07:00,880 --> 00:07:04,120 Speaker 1: anyone else who's trying to counsel someone is working with 128 00:07:04,160 --> 00:07:06,480 Speaker 1: someone that they see is stressed or anxious or fearful 129 00:07:06,600 --> 00:07:10,160 Speaker 1: or angry, the first step is really moving them from 130 00:07:10,240 --> 00:07:13,000 Speaker 1: that sympathetic to the parasympathetic. Well, you better have a 131 00:07:13,000 --> 00:07:14,960 Speaker 1: degree in pasitive psychology to do that, or you better 132 00:07:14,960 --> 00:07:16,720 Speaker 1: have watched Lie to me that series that ran for 133 00:07:16,760 --> 00:07:18,560 Speaker 1: a couple of years, which must have been one of 134 00:07:18,600 --> 00:07:22,400 Speaker 1: your favorites. Absolutely, and that's based on actual research that 135 00:07:22,520 --> 00:07:26,280 Speaker 1: was done worldwide to recognize different emotions that actually they 136 00:07:26,320 --> 00:07:30,200 Speaker 1: have these things called micro expressions where when you practice this, 137 00:07:30,360 --> 00:07:33,200 Speaker 1: you can actually see these things that the person themselves 138 00:07:33,280 --> 00:07:37,320 Speaker 1: might not even realize they're experiencing. Absolutely, it's a great show, 139 00:07:37,520 --> 00:07:41,040 Speaker 1: all right. Now, let's tie that into how people address 140 00:07:41,160 --> 00:07:45,040 Speaker 1: their investments, because if you're a robo advisor, if you're 141 00:07:45,040 --> 00:07:47,600 Speaker 1: doing something where it's just a human to a piece 142 00:07:47,640 --> 00:07:52,080 Speaker 1: of technology, you can answer questions rather dispassionately and think 143 00:07:52,120 --> 00:07:55,119 Speaker 1: that you're giving the correct answer. But when the stock 144 00:07:55,200 --> 00:07:58,920 Speaker 1: market goes the way you didn't expect, that rationality can 145 00:07:58,960 --> 00:08:02,480 Speaker 1: go out the window. Such a great point, So psychologists 146 00:08:02,520 --> 00:08:05,560 Speaker 1: also talk about this notion of hot states and cold states, 147 00:08:05,560 --> 00:08:08,320 Speaker 1: and hot states are when you're emotional and cold states 148 00:08:08,400 --> 00:08:10,760 Speaker 1: or when you're rational, and a lot of times when 149 00:08:10,760 --> 00:08:13,559 Speaker 1: you're filling out paperwork or going through an online wizard, 150 00:08:13,560 --> 00:08:15,400 Speaker 1: you're in one of those cold states, and so you're 151 00:08:15,640 --> 00:08:18,400 Speaker 1: rationally thinking about how much risk I can comfortably take. 152 00:08:18,960 --> 00:08:21,040 Speaker 1: But then of course the market starts going down and 153 00:08:21,040 --> 00:08:24,040 Speaker 1: you see your savings dwindling and retirements out the window. 154 00:08:24,120 --> 00:08:25,920 Speaker 1: You might have to defer for a few years and 155 00:08:25,960 --> 00:08:28,040 Speaker 1: you hate your job. All of a sudden, that hot 156 00:08:28,080 --> 00:08:31,240 Speaker 1: state has kicked on, right, and so it pushes you 157 00:08:31,320 --> 00:08:33,679 Speaker 1: to make act to take action, and a lot of 158 00:08:33,679 --> 00:08:36,320 Speaker 1: times that action isn't in your best interest. And that's 159 00:08:36,320 --> 00:08:41,080 Speaker 1: where whether it's a wise friend or a wise financial advisor, 160 00:08:41,160 --> 00:08:42,840 Speaker 1: that's where they really come in handy in or and 161 00:08:42,840 --> 00:08:44,840 Speaker 1: they're going to keep How do I know if I'm 162 00:08:45,440 --> 00:08:49,600 Speaker 1: got the right financial advisor? I might if I feel 163 00:08:49,600 --> 00:08:52,360 Speaker 1: good talking to you? Is that a good sign? Or 164 00:08:52,480 --> 00:08:54,199 Speaker 1: does it show that I'm kind of gullible? And if 165 00:08:54,200 --> 00:08:56,880 Speaker 1: someone's nice to me it says what I want to hear, 166 00:08:56,920 --> 00:08:58,680 Speaker 1: You know that I'm not going to get the best advice. 167 00:08:58,800 --> 00:09:01,040 Speaker 1: Is there a way to to deal with your feelings 168 00:09:01,040 --> 00:09:03,000 Speaker 1: which drive a lot of the thought, but which we 169 00:09:03,000 --> 00:09:05,319 Speaker 1: think is objective, but it's very subjective when it comes 170 00:09:05,360 --> 00:09:07,760 Speaker 1: to making an important decision like that. That's a great question. 171 00:09:08,320 --> 00:09:11,520 Speaker 1: There's actually some interesting research out there about doctors and 172 00:09:11,600 --> 00:09:14,439 Speaker 1: that the doctors that they're that patients like the best 173 00:09:15,000 --> 00:09:17,720 Speaker 1: actually give some of the worst advice. And so I 174 00:09:17,720 --> 00:09:21,000 Speaker 1: think you're spot on that it's not just about feeling 175 00:09:21,040 --> 00:09:24,240 Speaker 1: good about your financial advisor. It's also that they help 176 00:09:24,240 --> 00:09:26,520 Speaker 1: you plan for the future. I think there are really 177 00:09:26,559 --> 00:09:29,120 Speaker 1: three things that a financial advisor can spend their time 178 00:09:29,120 --> 00:09:31,640 Speaker 1: on trying to predict the future, what's going to happen 179 00:09:31,640 --> 00:09:34,040 Speaker 1: in the markets, what tax laws are going to change, etcetera. 180 00:09:34,320 --> 00:09:36,640 Speaker 1: And personally, I think that's impossible. So if you have 181 00:09:36,679 --> 00:09:39,439 Speaker 1: an advisor that's telling you they're doing that, they're likely 182 00:09:39,520 --> 00:09:42,080 Speaker 1: not actually able to do that. They can plan for 183 00:09:42,120 --> 00:09:45,240 Speaker 1: the future right techniques that already exist, whether it's putting 184 00:09:45,240 --> 00:09:47,400 Speaker 1: money into a row for the right reasons or whatever 185 00:09:47,400 --> 00:09:50,319 Speaker 1: else might be, and then they can wisely react with 186 00:09:50,400 --> 00:09:53,880 Speaker 1: you to the current events. And I think those last 187 00:09:53,920 --> 00:09:55,880 Speaker 1: two are the things that advisors should focus on. And 188 00:09:55,880 --> 00:09:58,240 Speaker 1: so if you have an advisor that's doing those last two, 189 00:09:58,320 --> 00:10:01,120 Speaker 1: well then you're in the right place. I want to 190 00:10:01,120 --> 00:10:04,120 Speaker 1: just get your thoughts on the combination of having a 191 00:10:04,160 --> 00:10:08,080 Speaker 1: live human being assist you or guide you with your 192 00:10:08,080 --> 00:10:12,160 Speaker 1: financial future, but also employing some of these new robo 193 00:10:12,280 --> 00:10:15,880 Speaker 1: advising technologies. Give me about ten seconds, All right, great point. 194 00:10:15,920 --> 00:10:19,360 Speaker 1: I think it's robo versus RoboCop. And everybody wants RoboCop. 195 00:10:19,400 --> 00:10:21,160 Speaker 1: You want somebody that you can look at in the eyes, 196 00:10:21,200 --> 00:10:23,720 Speaker 1: but who's using all of the technology that the world's 197 00:10:23,720 --> 00:10:27,240 Speaker 1: got available. And so similarly, if your advisor isn't using technology, 198 00:10:27,440 --> 00:10:30,080 Speaker 1: they're not able to serve you well, thanks very much, 199 00:10:30,640 --> 00:10:33,520 Speaker 1: good advice, good interesting alright. Cole Burke is the senior 200 00:10:33,600 --> 00:10:38,880 Speaker 1: vice president Technology Strategy and a financial behavior specialist for 201 00:10:39,160 --> 00:10:44,320 Speaker 1: Commonwealth Financial Network. They are based in Waltham, Massachusetts. If 202 00:10:44,360 --> 00:10:46,920 Speaker 1: you're listening to Taking Stock, I'm pim Fox. My co 203 00:10:47,040 --> 00:10:51,360 Speaker 1: host Kathleen haays. We are broadcasting from Atlantic Wharf in Boston, 204 00:10:52,280 --> 00:11:02,120 Speaker 1: home to Smith and Lensky's. This is Bluebird. Donald Trump 205 00:11:02,200 --> 00:11:04,920 Speaker 1: is against it, Present Obama is for it. Killer Clinton 206 00:11:04,960 --> 00:11:08,640 Speaker 1: seems to be somewhere in the middle. Find out if 207 00:11:08,800 --> 00:11:12,840 Speaker 1: the T P P trade deal is good politics and 208 00:11:12,840 --> 00:11:14,199 Speaker 1: good economics. That's next.