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Speaker 1: Hello, and welcome to What Goes Up, a weekly markets podcast.

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Speaker 1: My name is Mike Reagan and I'm a senior editor

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Speaker 1: at Bloomberg and this week on the show, despite lingering unemployment,

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Speaker 1: the American consumer appears to be in pretty good shape.

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Speaker 1: Betty Walton. Bank accounts are swollen from either government stimulus

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Speaker 1: payments where the money saved from not leaving the house

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Speaker 1: for very much during the pandemic. Well, what will these

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Speaker 1: consumers spend it on? Has the pandemic changed spending habits

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Speaker 1: permanently or were at least in the near future. We'll

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Speaker 1: get into it with a portfolio manager and an analyst

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Speaker 1: who covers the consumer, discretionary and industrial sectors. But first,

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Speaker 1: Charlie Pelletts Halls, who this week's mystery co host is.

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Speaker 1: This week's mystery co host is Chris nate Gee. Chris

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Speaker 1: is a Boston guy at heart who's an executive editor

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Speaker 1: from Markets in Bloomberg. That means he's actually Reagan's boss.

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Speaker 1: So don't expect Mike to make any jokes about the

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Speaker 1: Celtics performance in the playoffs this year, well, at least

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Speaker 1: not on this episode of the podcast. Chris, Charlie's right

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Speaker 1: I'm not gonna make any jokes about the Celtics. I

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Speaker 1: will say I I hope you know you guys could

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Speaker 1: have softened up the rest of the conference a little

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Speaker 1: bit for us, But but no, you didn't really do that.

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Speaker 1: I think we energize them. There's nothing funny to say

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Speaker 1: about that serious move from from your perspective. There there,

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Speaker 1: There's there's a lot to say from from us. But

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Speaker 1: uh but Chris, as I put it on the intro,

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Speaker 1: we have a great guest this week who knows a

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Speaker 1: lot about consumer stocks and consumer behavior. Before we bring her,

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Speaker 1: you know, I wanted to ask you about one thing

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Speaker 1: that I know American consumers are spending a lot on

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Speaker 1: these days, and that's the meme stocks and the doage

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Speaker 1: coins in the world. The aisles are Bear that's right,

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Speaker 1: the aisles of Bear of Beam. Sus, you and I

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Speaker 1: have been through a lot of, let's face it, crazy

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Speaker 1: market regimes together in this this job of ours, but

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Speaker 1: I don't think we've ever seen anything like this that

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Speaker 1: what we've seen in the past year. I'm just curious.

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Speaker 1: You know, we haven't talked in Aboile. What's your take

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Speaker 1: on this sort of new environment of day traders that

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Speaker 1: we're seeing now. I mean, I guess it that goes

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Speaker 1: to some degree the big day trading craze back in

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Speaker 1: the day in the early two thousand's, But this seems

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Speaker 1: to be something completely different. I mean, is is this

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Speaker 1: just a permanent change do you think in the sort

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Speaker 1: of makeup of the investor class, or is it just

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Speaker 1: a fat I guess it remains to be seen if

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Speaker 1: it's permanent. But you do have to say it's outlasted

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Speaker 1: a lot of the predictions of its demise, Like there

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Speaker 1: were a lot of sort of conventional wisdom ideas that

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Speaker 1: it would run out when people went outside, or when

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Speaker 1: sport events sports came back, like the Celtics Series M

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Speaker 1: or the stimulus checks ran out. And right now you

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Speaker 1: have to say, I mean, I think it is important.

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Speaker 1: It's not quite the same absolutely uncorked craze that it

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Speaker 1: was during the first go round. It seems like it's

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Speaker 1: a little bit more selective now. They're they're honing it

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Speaker 1: on their targets, maybe doing a better job of targeting

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Speaker 1: company companies that sort of fit their model. But um,

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Speaker 1: it's starting to seem like maybe it wasn't entirely a

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Speaker 1: function of the of the lockdown, and what it was

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Speaker 1: was the discovery of another way to crowdsource what people

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Speaker 1: want in the world. And to that to that extent,

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Speaker 1: you have to either worried or hope that it's permanent,

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Speaker 1: depending on your side of the UH, which side of

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Speaker 1: the trade you'ur on. It does seem like aspects of

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Speaker 1: it are going to be tough to root out for

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Speaker 1: or or just are going to be are gonna winger.

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Speaker 1: I mean, there's just it just seems to be. It

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Speaker 1: just seems to be working too well to be going

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Speaker 1: to a quick death. I say, bring the retail courage

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Speaker 1: commissions back and we'll get back to life as normal.

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Speaker 1: But maybe I'm maybe I'm the outlier there, that's a

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Speaker 1: fair point. There was a big this week. There's a

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Speaker 1: big push at the SEC to to look at some

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Speaker 1: of the market structure stuff that's underpinned this, so that

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Speaker 1: certainly it's made UH commission free trading possible, like some

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Speaker 1: of the you know, the market structured payment for order

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Speaker 1: flows things, and maybe maybe if that gets un ended

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Speaker 1: that some of the hysteria. I mean, certainly the ability

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Speaker 1: to trade for nothing is a big part of what's

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Speaker 1: UH what's driving it. I don't know that it's an

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Speaker 1: absolutely necessary but it's certainly a facilitating influence on the

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Speaker 1: whole thing, right, absolutely, Let's get to it then with

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Speaker 1: our guests. As I said, she's a portfolio manager and

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Speaker 1: an analyst. She covers the consumer, discretionary and industrial sectors

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Speaker 1: at the investment firm Westwood. Her name is Lauren Hill. Lauren,

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Speaker 1: welcome to the show. Thanks for having me here. I'm

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Speaker 1: happy to be here. And and Lauren, much as I

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Speaker 1: will not make any jokes about the Celtics, I'm not

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Speaker 1: gonna make any jokes about you being a member of

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Speaker 1: the Fuji. He's said. I wish I could sing to

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Speaker 1: as much as I spelled differently, though, so at least

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Speaker 1: I'm sure you wish you wish you'd never heard that before.

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Speaker 1: I was gonna ask how many times you've heard that joke,

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Speaker 1: but I'm sure it's it's daily at least. Uh kind

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Speaker 1: of joke doesn't even doesn't even qualify as alright, alright.

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Speaker 1: I lived in the city for eleven years, and Lauren,

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Speaker 1: the real Lauren who lived in New Jersey, so people

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Speaker 1: were always giving me updates when they'd see her on

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Speaker 1: the street. They'd be like I saw her name to today,

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Speaker 1: like it's really funny. Pride of New Jersey. We're very

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Speaker 1: proud of her, I will say, though, she does have

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Speaker 1: a reputation for being laid on stage. And you were

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Speaker 1: right on time, so you got you got that uh

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Speaker 1: distinction there too. But let me ask you about the

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Speaker 1: whole notion of consumers. I think it's a great time

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Speaker 1: to have you on the show because well, everybody is

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Speaker 1: ready for the consumer to come roaring back now that

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Speaker 1: the lockdowns are over. Everyone's vaccinated, and I want to

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Speaker 1: ask you a little bit of kind of how you

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Speaker 1: sort of suss out where you think the consumers going

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Speaker 1: to go. And I'll tell you why. One of the

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Speaker 1: big things that a lot of people were looking at

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Speaker 1: during the pandemic was the various sort of alternative sets

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Speaker 1: of data that we have available to us in real time.

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Speaker 1: One thing that a lot of people looked at was

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Speaker 1: open table restaurant reservations. And I get it as sort

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Speaker 1: of the notion of as a macro indicator that the

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Speaker 1: economy is reopening, people are more comfortable getting back out there.

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Speaker 1: But to me, you know, I don't think I can't

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Speaker 1: think a lot of public companies that actually have restaurants

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Speaker 1: that need respirations too. So to me, my point being,

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Speaker 1: and this is a long monologue to set up this question,

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Speaker 1: but the point being that you know, do we know

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Speaker 1: how the consumer is going to start spending this bankroll

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Speaker 1: they have now? Um? Because I'm thinking if a lot

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Speaker 1: of people create, say a fancy dinner out that has

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Speaker 1: different implications obviously, then say people craving a chance to

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Speaker 1: get back shopping at the malls or going to the movies.

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Speaker 1: I'm just curious how you're analyzing the consumer in this

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Speaker 1: reopening environment, um, And where do you expect that spending

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Speaker 1: to be most robust? Yeah? Absolutely, So I'm really really

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Speaker 1: positive on the consumer. I think we're going to have

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Speaker 1: a really incredible rebound from here. I think the spending

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Speaker 1: is going to surprise a lot of people, um, both

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Speaker 1: in terms of the magnitude and how long it lasts.

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Speaker 1: So UM. I think that the consumer the way I

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Speaker 1: look at things is um, you know, kind of by generation.

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Speaker 1: So UM. I think that we're gonna have a robust

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Speaker 1: rebound in spending and that's going to be led by

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Speaker 1: the boomers. I think that when you get down to

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Speaker 1: the younger folks are going to be doing all kinds

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Speaker 1: of different things. But just the group I spend a

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Speaker 1: lot of time on is what I call the boomers

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Speaker 1: plus that's people fifty five and older. So they only

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Speaker 1: make up twenty percent of population, but they control over

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Speaker 1: seventy percent of US wealth. So, um, you know, they

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Speaker 1: were the most reluctant to get out during and now

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Speaker 1: how they are returning to their old shopping patterns. And

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Speaker 1: they've been adulting for a very long time, you know,

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Speaker 1: in some cases fifty years, so they have really well

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Speaker 1: established patterns of spending and they're getting back to it.

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Speaker 1: Life is short. Um, they're putting family and friends and

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Speaker 1: catching up with them as a high priority. I think

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Speaker 1: that's gonna last two to three years. I think that's

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Speaker 1: gonna boost travel. We're gonna see a lot of what

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Speaker 1: I call social interaction spending. So we're gonna see hotel spending, vacations,

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Speaker 1: people out of sit down restaurants. We're going to see

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Speaker 1: a lot more services. There's tremendous pinet demand for services.

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Speaker 1: We don't quite have the labor force back as we

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Speaker 1: need them. There's still sixteen point nine million people on

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Speaker 1: the sidelines collecting an employment right now. Before the pandemic,

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Speaker 1: that was just two million, So, um, you know, the

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Speaker 1: true unemployment rates probably still around ten percent. But I think,

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Speaker 1: you know, as the federal bonus, the three a week

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Speaker 1: extra that people are getting right now to help them

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Speaker 1: get by, goes away the first week of September, I

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Speaker 1: think we're gonna start to see, uh, and easing of

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Speaker 1: that pressure in the labor market. More people are going

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Speaker 1: to be out there, more services are going to be available.

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Speaker 1: That's going to kind of ease the pressure on goods. Um.

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Speaker 1: You know that people are so focused on spending on

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Speaker 1: goods right now at the moment. But I think we're

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Speaker 1: gonna get back to that natural balance, and I think

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Speaker 1: boomers plus are going to lead us out of it.

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Speaker 1: And um, you know, the younger folks, they don't have

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Speaker 1: as well established patterns, especially those just out of college.

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Speaker 1: So I really believe that, um, they're spending patterns may

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Speaker 1: be affected for a very long time. You know. Um,

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Speaker 1: in the last downturn, we talked about a lost decade.

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Speaker 1: You know, it could kind of look like that, But

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Speaker 1: kind of the big picture is they just don't have

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Speaker 1: the spending power. In fact, Jen excellently has a third

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Speaker 1: of the uh the wealth of UM the boomers and

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Speaker 1: jin Jin y only has one. So even though they

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Speaker 1: may spend more time at home, and they already were

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Speaker 1: before the pandemic, which is I find really fascinating, they

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Speaker 1: were already UM, kind of creating this home body economy.

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Speaker 1: They had high student loans, they had you know, different

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Speaker 1: pressures in their life. They were getting around to getting married,

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Speaker 1: buying houses later in life, so they were already kind

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Speaker 1: of willing to have more of a home life. And

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Speaker 1: I think that's going to kind of continue. So different

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Speaker 1: groups are going to do different things. But because of

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Speaker 1: the you know, the I think boomers UM rule the

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Speaker 1: world and I think that they're going to lead us

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Speaker 1: out of this UM. The last interesting thing is UM.

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Speaker 1: You know, the most recent data shows that seventy five

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Speaker 1: percent of the boomers plus have had at least one

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Speaker 1: shot from the COVID vaccine series. So I think that

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Speaker 1: gives them a lot of confidence to really get out there.

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Speaker 1: You know. The younger folks, UM, it's been more mixed,

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Speaker 1: you know, just I don't think there's as much urgency.

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Speaker 1: People are waiting to see if perhaps their schools are

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Speaker 1: going to require it in the fall, you know, if

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Speaker 1: they're in college and people are making all different kinds

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Speaker 1: of choice is but you know, the older folks just

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Speaker 1: felt a little more urgency. And I think that's a

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Speaker 1: really healthy and great thing for the U. S. Economy.

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Speaker 1: It's interesting. I live in downtown Manhattan. I actually live

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Speaker 1: right next to Washington Square Park where you used to

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Speaker 1: one used to notice and absolutely agree. I've lived around

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Speaker 1: here for a long time, and when I was a kid,

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Speaker 1: um the streets were pretty much mobbed all night, uh

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Speaker 1: in this area, every every weekend night, certainly, And then

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Speaker 1: for the last ten years it's really been like you

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Speaker 1: could hear pin drop for most of the time. Part

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Speaker 1: of part of it is that, you know, the rents

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Speaker 1: and the houses here are now eleven million dollars no matter,

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Speaker 1: no matter what. But another part of it I always

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Speaker 1: thought was sort of people the kids are tapping into

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Speaker 1: their phones and staring at their phones and interacting via

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Speaker 1: things that don't require to go outside. I would just say,

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Speaker 1: in the last three months, two months, you haven't seen,

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Speaker 1: to put it mildly, the same reticence amongst the gen

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Speaker 1: y and the zoom, the zoom general, the very young generation.

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Speaker 1: They are outside in force at the moment. They will

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Speaker 1: not let me sleep the party until three in the

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Speaker 1: morning in Washington Square. Uh, they seem like they're very

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Speaker 1: interested in getting back on outside. But I do know

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Speaker 1: where you're coming from. I mean, um, who benefits from

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Speaker 1: just the boomer trade. I mean there are there companies

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Speaker 1: where this hasn't been priced in yet, is their industries,

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Speaker 1: because it seems like a lot of stuff that's it's

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Speaker 1: like the reopening because people have people have rooted it

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Speaker 1: out and found it. At this point, anywhere the boomers

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Speaker 1: direct they're spending. Uh, you know, they're gonna be big beneficiaries.

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Speaker 1: So you know, we're seeing, um, what I call the

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Speaker 1: social interaction categories are really getting a big lift right now.

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Speaker 1: So um, you know, I'm seeing a tremendous momentum in retail.

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Speaker 1: So um, you know, just a lot of the departments doors,

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Speaker 1: the mall based retailers. You know, they really kind of

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Speaker 1: let us out of um, you know, the the rebound

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Speaker 1: and um, you know out of uh last year following

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Speaker 1: the vaccine announcements in November, So that group has been

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Speaker 1: really strong. Anything associated with travel, car rentals, uh, you know,

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Speaker 1: anything associated with services, and you know, a lot of

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Speaker 1: those stocks have moved quite a bit. So um, really,

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Speaker 1: what I love so much is that we're really entering

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Speaker 1: what I considered be a stock pickers market. Um, that's

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Speaker 1: really where you know, firms like mine, like Westwood shine.

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Speaker 1: So I'm really looking forward to many years of just

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Speaker 1: a really healthy market where we're really focused on the

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Speaker 1: fundamentals and you know, we have this really healthy, um,

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Speaker 1: long lasting spend backdrop. So one of the other things

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Speaker 1: I think people are overlooking, what I think consensus is that, Okay,

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Speaker 1: we had the stimulus checks. You know, we just got

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Speaker 1: checks the last round. You know, we've had over two

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Speaker 1: grand given out to you many many UM families and

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Speaker 1: that's wonderful, but um, you know, it's kind of one

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Speaker 1: and done, and I actually think it's going to be

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Speaker 1: more sustained. So we're having a tremendous positive wealth effect.

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Speaker 1: And so both the stock markets up double digits, home

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Speaker 1: valuations are up double digits as well, and people just

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Speaker 1: feel wealthier. They've saved quite a bit um. You know

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Speaker 1: in many cases, you know, obviously there's um the last

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Speaker 1: year was hard for everyone in different ways, and some

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Speaker 1: people you know, went through job loss and transitions. But

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Speaker 1: by and large, a lot of people made it through,

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Speaker 1: especially the oldest generation like the Boomers plus made it

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Speaker 1: through relatively unscathed. So I think that, um, you know,

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Speaker 1: they're they are ready. There's all those areas where there's

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Speaker 1: pent up demand are going to continue to benefit and

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Speaker 1: the spending is going to be orderly. I don't think

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Speaker 1: it's gonna be so quick, um in goods and services

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Speaker 1: that it's going to force the fence hand and we're

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Speaker 1: gonna have to raise rates. You know, that's my personal opinion.

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Speaker 1: I know that everyone kind of falls, you know, a

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Speaker 1: the spectrum in different places with different views on that.

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Speaker 1: But um, I think that if any area starts to

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Speaker 1: have too much inflation, then I think that people are

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Speaker 1: very rational and they're gonna take their tremendous savings and

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Speaker 1: they're gonna spend it in different categories that are more compelling.

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Speaker 1: So right now, the savings um is just over six

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Speaker 1: trillion dollars in the US, So that's four point three

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Speaker 1: trillion more than we had going into the pandemic. So

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Speaker 1: that's gonna take a long time to spend down, and

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Speaker 1: I think it will be fairly orderly. I think people

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Speaker 1: are going to take their time catching up with folks

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Speaker 1: and enjoying their lives. And um, you know, I'm seeing

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Speaker 1: it in fashion too. There's just so many exciting fashion

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Speaker 1: trends coming. I think people are really ready to be

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Speaker 1: happy again. Uh. The summer, it's all about the bright colors.

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Speaker 1: I don't know if you've been to the mall lately,

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Speaker 1: but it is just, uh, you know, it looks like

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Speaker 1: it was attacked by a highlighter. Um it was you

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Speaker 1: know you see me on girl means and electric blues, corals,

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Speaker 1: a big color hot pink, uh, you know, and just oranges.

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Speaker 1: And people are ready to see and be seen again. Um.

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Speaker 1: Also for the fall, I was really excited to see

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Speaker 1: um the fall fashion. Lots of crazy patterns coming in

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Speaker 1: the fall. Just very interesting to look at something that

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Speaker 1: will catch the eye. And uh, I think that people

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Speaker 1: have been staring at the four walls of their home

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Speaker 1: for such a long time. They're just ready for variety,

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Speaker 1: and I think that's coming. It's a great perspective, Lauren,

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Speaker 1: because as you might be able to uh determine from

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Speaker 1: looking at Chris and I, we don't know much about fashion.

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Speaker 1: I don't hear it but I wonder if fact that color,

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Speaker 1: that colors thing could be a good indicator, you know,

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Speaker 1: like the old hemline indicator they talk about if people

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Speaker 1: are in a fashion very bright and colorful fashion mode,

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Speaker 1: maybe maybe that that's a bullish sign. Um. I also,

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Speaker 1: I'm glad you're giving some props to the boomers, that

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Speaker 1: the group that does not get a lot of props

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Speaker 1: these days from the younger generation. I'm personally not a boomer.

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Speaker 1: I am accused of being one a lot on social media.

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Speaker 1: I'm not gonna speak for Chris. He might be yes, yes,

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Speaker 1: very I may be a little bit on the boomer

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Speaker 1: spectrum with at least it was musical to taste, I

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Speaker 1: will say, and perhaps perhaps fashion taste to kikkokies and

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Speaker 1: and whatnot. But I want to ask also about the

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Speaker 1: industrial So I know you follow industrials as well, Um,

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Speaker 1: and there was a lot of sort of enthusiasm towards

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Speaker 1: the industrial sector earlier this year. Now it's looking like, um,

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Speaker 1: the infrastructure bill is probably not going to necessarily go

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Speaker 1: anywhere in Congress. I mean, is there enough um sort

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Speaker 1: of juice in the economy to be excited about the

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Speaker 1: industrial sector as well, or is this, you know case

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Speaker 1: closed a consumer dominated sort of market story from a

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Speaker 1: sector perspective. In your opinion, I am excited about the

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Speaker 1: consumer and what I'm seeing, you know, specifically within retail um.

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Speaker 1: You know, especially for businesses that have the strongest brands,

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Speaker 1: the deepest pockets, they can invest in omni channel. You know,

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Speaker 1: I think that's all a great opportunity. Looking over at

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Speaker 1: the industrials, uh, you know, I think that there's room

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Speaker 1: for excitement as far as there's some new technologies coming out,

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Speaker 1: and you know, anytime a company has you know, some

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Speaker 1: new great patents, some new product lines, they can grow.

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Speaker 1: I just think that there's kind of a limit or

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Speaker 1: a cap on how quickly that can grow. You know.

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Speaker 1: We we have the infrastructure that we have, and you know,

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Speaker 1: there's a limit to what full production looks like for US,

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Speaker 1: and over time, the US has made less, you know,

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Speaker 1: and so that just um, you know, everyone wants to

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Speaker 1: get as much as they possibly can on the shelves.

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Speaker 1: Companies that have been running at all time low inventories

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Speaker 1: and seeing that across a number of subsectors, you know,

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Speaker 1: are very nervous in the the business um, the leaders

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Speaker 1: want to you know, keep a little extra. It's not

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Speaker 1: just about just in time anymore. They want to have

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Speaker 1: a little um more inventory than they have. So I

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Speaker 1: think we're gonna have some restocking, and that's you know,

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Speaker 1: a very positive thing. But you know, just from my

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Speaker 1: view also the evaluations there are more full in my

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Speaker 1: opinion in general, so it's just slimmer pickings and industrials.

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Speaker 1: I just tend to see more opportunity on the consumer

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Speaker 1: discusitionary side. And I find that that you're you're very

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Speaker 1: sanguine attitude here. I mean, it's great to hear. It's, uh,

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Speaker 1: thank god, somebody is so optimistic about the world, except

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Speaker 1: where people. I also have to say it does not

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Speaker 1: exactly accord with my view of what the life of

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Speaker 1: an equity analyst must have been like over the last year.

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Speaker 1: Like I know that your wild to your resume and

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Speaker 1: you did a lot of value work, which I think

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Speaker 1: is like the only really defensible approach to to security analysis.

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Speaker 1: But I also have to think, I mean, you're in

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Speaker 1: charge of retail names, many of them must have been

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Speaker 1: by definition playing around near bankruptcy levels over the last year,

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Speaker 1: and now you're a sensible logic bearing analyst value value

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Speaker 1: analysts dealing with the market where God knows what is

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Speaker 1: coming for you. I mean, let's face a lot of

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Speaker 1: the meme stocks have been aimed at vaguely consumer Jason,

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Speaker 1: I mean not necessarily legitimate and viable consumer facing names,

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Speaker 1: but a lot of their interests has been in that

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Speaker 1: near that space. I just feel like I would be

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Speaker 1: hold up with the security blanket and a pacifier in

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Speaker 1: a locked room somewhere if I had your job. What's

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Speaker 1: it been like. I mean, that's Christmas Foster with his

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Speaker 1: job too. By the way, Yeah, I do that. I

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Speaker 1: do that regardless, I'm doing that now. No good to know.

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Speaker 1: I totally hear you, but I guess just you know,

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Speaker 1: from my view, I actually thought was fascinating. You know,

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Speaker 1: my heart went out to UM everyone who had hard

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Speaker 1: times throughout you know, lots of families did, lots of

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Speaker 1: people were affected. But as far as the market goes,

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Speaker 1: it was absolutely fascinating because it was a recession unlike

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Speaker 1: any other half of my companies did better than ever

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Speaker 1: and you know, had high high demand. People were focused

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Speaker 1: on their home, you know, uh, furniture and UM, getting

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Speaker 1: prepared for work at home, doing school from home. You know,

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Speaker 1: there was tremendous amount of spending that went into all

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Speaker 1: of that. And at the same time, you know, no

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Speaker 1: one was buying suits, no one was um, you know,

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Speaker 1: buying structured clothes or um for formal gowns or you know,

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Speaker 1: going to events. All of that just dried up overnight.

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Speaker 1: UM And luckily, UM, you know, I spent a number

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Speaker 1: of years on the hedge fund side of the business,

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Speaker 1: and you gush, you really have to babysit your shorts

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Speaker 1: and spend so much time on those and that would

401
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Speaker 1: have uh, you know, just been so hard this past year.

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Speaker 1: But luckily Westwood causes long only for the long term,

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Speaker 1: and we we invested the intersection of quality and value,

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Speaker 1: and so we really tend to be very very careful

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Speaker 1: and the risk that we take. You know, that's the

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Speaker 1: first analysis we all do before we look at the

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Speaker 1: upside potential, and we spend um hours and hours vetting

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Speaker 1: each other's ideas as a team before they even go

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Speaker 1: on the approvals to buy. So we tend to uh,

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Speaker 1: we actually did exceptionally well throughout and um our analysts

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Speaker 1: know their sectors so so well, you know, they could

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Speaker 1: kind of see around the corners and know what was

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Speaker 1: coming and make educated guesses on you know, what the

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Speaker 1: future would be like. And they were talking to you know,

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Speaker 1: all of the UH teams and management teams and listening

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Speaker 1: to all the calls. So I felt like we had

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Speaker 1: a really good read and it was very apparent to

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Speaker 1: us like places to completely avoid and others, you know,

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Speaker 1: to spend more time on. Wow, could this really be

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Speaker 1: a good opportunity? So, um, we sidestepped a lot of

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Speaker 1: the headache, but yeah, it was just a really wild

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Speaker 1: gear or I mean, it just felt like you couldn't

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Speaker 1: get off the roller coaster. You couldn't get away from

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Speaker 1: your screens. You know. I remember back in um, you know,

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Speaker 1: February March o nine, just standing at my desk. I

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Speaker 1: couldn't even sit, you know, just the markets were dropping

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Speaker 1: so quickly and just how rapidly everything developed. It was

428
00:23:16,359 --> 00:23:20,919
Speaker 1: just incredible. But you know, and I think the important

429
00:23:20,960 --> 00:23:23,080
Speaker 1: thing to focus on now is just the future outlook

430
00:23:23,119 --> 00:23:42,560
Speaker 1: from here, and to me that seems really bright. Speaking

431
00:23:42,600 --> 00:23:47,040
Speaker 1: of great UH, Lauren, and I will say one thing, Um,

432
00:23:47,040 --> 00:23:49,600
Speaker 1: we have a lot of sort of macro top down

433
00:23:49,720 --> 00:23:52,600
Speaker 1: type of guests on here, which are they're always fascinating

434
00:23:52,640 --> 00:23:54,120
Speaker 1: and brilliant, But I really like it when we get

435
00:23:54,480 --> 00:23:57,399
Speaker 1: a bottoms off type of person like yourself. And I

436
00:23:57,440 --> 00:23:59,280
Speaker 1: know I've I've got a few stocks here that I

437
00:23:59,320 --> 00:24:01,399
Speaker 1: know I've caught your I So if we could just

438
00:24:01,440 --> 00:24:07,359
Speaker 1: go through quickly, Uh, what you like about one hundred Flowers,

439
00:24:07,359 --> 00:24:11,320
Speaker 1: Halloway Golf and Ross stores. I think I said some

440
00:24:11,320 --> 00:24:14,160
Speaker 1: one of them had stop boomer themed to the Calloway Golf,

441
00:24:14,240 --> 00:24:17,280
Speaker 1: but uh, maybe one eight hundred Flowers has that sort

442
00:24:17,320 --> 00:24:19,880
Speaker 1: of break and sunny outlook that you're embracing. But walk

443
00:24:19,960 --> 00:24:25,560
Speaker 1: us through. What's got you excited about those stuffs? Yeah? So, um, yeah,

444
00:24:25,560 --> 00:24:30,240
Speaker 1: wedding hundred Flowers is, um, you know, just a fantastic company.

445
00:24:30,280 --> 00:24:32,919
Speaker 1: They are really really good at customer service. They have

446
00:24:32,960 --> 00:24:36,280
Speaker 1: number one market share in e gifting and you know,

447
00:24:36,520 --> 00:24:38,680
Speaker 1: it was a COVID winner. You know, we'd owned it

448
00:24:39,200 --> 00:24:43,080
Speaker 1: before the pandemic ever happened, but um and all throughout.

449
00:24:43,200 --> 00:24:46,120
Speaker 1: But the reason we continue to hold it and love

450
00:24:46,160 --> 00:24:49,719
Speaker 1: the stock is that, um, you know, they've really tapped

451
00:24:49,760 --> 00:24:52,440
Speaker 1: into an entirely new customer base, both at the high

452
00:24:52,520 --> 00:24:54,639
Speaker 1: end in the low end. So baby boomers who had

453
00:24:54,720 --> 00:24:58,160
Speaker 1: done all of their gifts shopping in person before the pandemic.

454
00:24:58,200 --> 00:25:00,280
Speaker 1: A lot of them tried out one at hundred for

455
00:25:00,320 --> 00:25:02,840
Speaker 1: the first time, and instead of buying say a fifteen

456
00:25:02,920 --> 00:25:05,000
Speaker 1: or twenty dollar house plant and sending it to someone,

457
00:25:05,040 --> 00:25:07,560
Speaker 1: they went for the two indre dollar orchids because they could.

458
00:25:07,880 --> 00:25:11,080
Speaker 1: And it's just higher margin, better business, and so the

459
00:25:11,119 --> 00:25:14,400
Speaker 1: new customers coming in were higher quality than the customer

460
00:25:14,400 --> 00:25:18,239
Speaker 1: base they already had. Their retention is over n and

461
00:25:18,320 --> 00:25:20,359
Speaker 1: so just being able. Um, I think there was a

462
00:25:20,359 --> 00:25:22,960
Speaker 1: lot of skepticism that they could hang onto those customers

463
00:25:23,040 --> 00:25:26,040
Speaker 1: leaving the pandemic, but um, you know, they have this

464
00:25:26,080 --> 00:25:29,160
Speaker 1: wonderful program. It's called the Passport program, and you spend

465
00:25:29,160 --> 00:25:31,680
Speaker 1: twenty dollars a year and you get all these all

466
00:25:31,720 --> 00:25:34,520
Speaker 1: the all these benefits, including free shipping, and so people

467
00:25:34,560 --> 00:25:37,040
Speaker 1: get their address books and there. It's very sticky business

468
00:25:37,600 --> 00:25:39,639
Speaker 1: and so they've really done a great job with that.

469
00:25:39,720 --> 00:25:42,240
Speaker 1: At the same time, they bought pe mall from bed

470
00:25:42,280 --> 00:25:45,560
Speaker 1: Bath and Beyond for a song. Um the you know,

471
00:25:45,600 --> 00:25:47,880
Speaker 1: it wasn't core for bed Bath and Beyond, and so

472
00:25:48,200 --> 00:25:51,040
Speaker 1: they really knew what to do with it. And personalization

473
00:25:51,800 --> 00:25:55,280
Speaker 1: um on coffee megs and mouse pads and all that

474
00:25:55,320 --> 00:25:58,520
Speaker 1: stuff is just really popular. It's growing double digits and

475
00:25:58,600 --> 00:26:01,800
Speaker 1: that's gonna lead to an increasing their IBADAM margin over time,

476
00:26:01,920 --> 00:26:06,960
Speaker 1: probably over and UM, it's just this wonderful business. So

477
00:26:07,080 --> 00:26:08,840
Speaker 1: I think that they have a long runway of growth

478
00:26:08,880 --> 00:26:12,159
Speaker 1: ahead of them. UM callawe golf. As you said, it

479
00:26:12,240 --> 00:26:14,800
Speaker 1: is kind of a boomer play. So people who retire

480
00:26:15,440 --> 00:26:17,440
Speaker 1: UM tend to play golf twice as often as the

481
00:26:17,480 --> 00:26:22,000
Speaker 1: average golfer. And so the boomers are retiring in force

482
00:26:22,240 --> 00:26:24,520
Speaker 1: and they're getting out there on the golf course. At

483
00:26:24,520 --> 00:26:27,160
Speaker 1: the same time, we have the Olympics coming up. UM

484
00:26:27,200 --> 00:26:29,240
Speaker 1: golf was out of the Olympics forever a hundred years

485
00:26:29,240 --> 00:26:31,480
Speaker 1: and it just came back in. So we're gonna have

486
00:26:31,520 --> 00:26:34,920
Speaker 1: it back again for the Olympics, you know, this year,

487
00:26:35,359 --> 00:26:38,000
Speaker 1: and so that's going to be exciting to see. Um,

488
00:26:38,080 --> 00:26:40,840
Speaker 1: we have a lot of new young pros that are

489
00:26:40,880 --> 00:26:44,400
Speaker 1: out there. There's a new programs for both UM, young

490
00:26:44,440 --> 00:26:46,400
Speaker 1: men and young women to play golf. You know, it's

491
00:26:46,400 --> 00:26:49,199
Speaker 1: starting younger and younger, so you can get into a

492
00:26:49,240 --> 00:26:52,000
Speaker 1: high school program where a couple of decades ago, you know,

493
00:26:52,080 --> 00:26:55,879
Speaker 1: that really wasn't a thing. And so I think that UM,

494
00:26:55,920 --> 00:26:59,160
Speaker 1: you know, golf turns are gonna remain really strong. UM

495
00:26:59,200 --> 00:27:03,560
Speaker 1: participation is at record levels, and also first time golfers

496
00:27:03,640 --> 00:27:06,440
Speaker 1: or new golfers are at record levels, So we're seeing

497
00:27:06,520 --> 00:27:09,919
Speaker 1: this massive inflow and once people learn something new, I

498
00:27:09,960 --> 00:27:12,760
Speaker 1: think the future UM leaving the pandemic is going to

499
00:27:12,880 --> 00:27:16,000
Speaker 1: be the everyone's gonna live their best life, so whatever

500
00:27:16,040 --> 00:27:19,440
Speaker 1: that means to them, whether that means more of the stone,

501
00:27:19,440 --> 00:27:21,560
Speaker 1: we're going to hang onto some of those habits or

502
00:27:21,600 --> 00:27:23,040
Speaker 1: if they're gonna, you know, kind of go back to

503
00:27:23,080 --> 00:27:25,480
Speaker 1: their twenty nineteen ways, they're gonna pick and choose what

504
00:27:25,560 --> 00:27:28,560
Speaker 1: works best for them and for people to learn golf.

505
00:27:29,000 --> 00:27:31,200
Speaker 1: I think that people really enjoy it. It's a safe

506
00:27:31,200 --> 00:27:34,960
Speaker 1: way to socialize UM and you know, it's really enjoyable.

507
00:27:35,080 --> 00:27:38,240
Speaker 1: So I think that UM as more people have four

508
00:27:38,240 --> 00:27:40,440
Speaker 1: hours to kill, they're going to get out there and

509
00:27:40,680 --> 00:27:43,600
Speaker 1: catch up with each other and continue to play rounds.

510
00:27:43,600 --> 00:27:46,800
Speaker 1: And the last element of that is UM, you know,

511
00:27:47,000 --> 00:27:50,080
Speaker 1: just the tremendous opportunity that they have with Top Golf.

512
00:27:50,119 --> 00:27:53,120
Speaker 1: They're going to expand that globally. They're going to franchise internationally.

513
00:27:53,160 --> 00:27:56,080
Speaker 1: They're going to grow their U S space by subveral

514
00:27:56,160 --> 00:28:00,400
Speaker 1: hundred stores, over the next um nine years, and so

515
00:28:00,520 --> 00:28:02,800
Speaker 1: they have a huge opportunity there. And then they have

516
00:28:02,880 --> 00:28:04,720
Speaker 1: this kind of free option. They said they want to

517
00:28:04,720 --> 00:28:06,840
Speaker 1: be the Pelotono Golf. So for you to be able

518
00:28:06,880 --> 00:28:10,159
Speaker 1: to take your cell phone, scan your your golf swing

519
00:28:10,200 --> 00:28:12,119
Speaker 1: at a you know, hotel, maybe you're off at a

520
00:28:12,119 --> 00:28:15,920
Speaker 1: conference or something from anywhere anytime, and get real time

521
00:28:15,960 --> 00:28:19,040
Speaker 1: feedback on your swing and how to improve. UM. I

522
00:28:19,040 --> 00:28:22,320
Speaker 1: think that's you know, an opportunity for them, UM you know,

523
00:28:22,440 --> 00:28:24,760
Speaker 1: and I don't have any of that priced in, but

524
00:28:24,960 --> 00:28:27,159
Speaker 1: I think that that could be a big opportunity for

525
00:28:27,200 --> 00:28:31,280
Speaker 1: them in the future. And UM, the last one Ross stores. UM,

526
00:28:31,320 --> 00:28:36,840
Speaker 1: it's just this incredible UM free cash flowgenerative business. UM.

527
00:28:36,840 --> 00:28:41,120
Speaker 1: It's steady through recessions, it's does really well in recoveries.

528
00:28:41,160 --> 00:28:44,360
Speaker 1: So virtually all of their stores were closed a year ago.

529
00:28:44,480 --> 00:28:48,520
Speaker 1: That makes forecasting the reopening extremely difficult. UM. You know,

530
00:28:48,600 --> 00:28:51,880
Speaker 1: they are a California based company that continues to expand

531
00:28:51,960 --> 00:28:55,520
Speaker 1: into the Midwest and eventually um more to the East coast,

532
00:28:56,240 --> 00:29:00,800
Speaker 1: UM towards you know, where their competitors competitors are, and

533
00:29:00,840 --> 00:29:03,320
Speaker 1: so they have UM they're one of the few retailers

534
00:29:03,360 --> 00:29:06,360
Speaker 1: that's able to open uh a hundred stores a year

535
00:29:06,680 --> 00:29:09,560
Speaker 1: and UM continue to grow that way. Their their comps

536
00:29:09,560 --> 00:29:12,480
Speaker 1: are very positive and what what's so different about them

537
00:29:12,640 --> 00:29:16,200
Speaker 1: is they look out at all of the dislocations that

538
00:29:16,240 --> 00:29:19,000
Speaker 1: are happening in the market. Retails really sped up a lot,

539
00:29:19,040 --> 00:29:21,280
Speaker 1: the supply chains have gotten a lot faster, but that's

540
00:29:21,320 --> 00:29:24,400
Speaker 1: leading to a lot of mistakes by the full price sellers,

541
00:29:24,720 --> 00:29:26,440
Speaker 1: and so they end up with boxes of clothes and

542
00:29:26,440 --> 00:29:28,520
Speaker 1: they don't have anything to do with them. It's like, oh, no,

543
00:29:28,640 --> 00:29:30,840
Speaker 1: this isn't on trend, or you know, I can't put

544
00:29:30,880 --> 00:29:32,440
Speaker 1: this out in the stores, or I have too much.

545
00:29:32,840 --> 00:29:35,200
Speaker 1: So they call Ross stores and they say, hey, will

546
00:29:35,240 --> 00:29:37,080
Speaker 1: you take this off my hands? And so they get

547
00:29:37,120 --> 00:29:40,880
Speaker 1: to survey everything available, take the very best of it UM,

548
00:29:40,920 --> 00:29:42,320
Speaker 1: you know, kind of mix it like a seal, at

549
00:29:42,320 --> 00:29:44,760
Speaker 1: a unique mix for every single store in the country.

550
00:29:44,800 --> 00:29:48,040
Speaker 1: They have very sophisticated systems that do just that and

551
00:29:48,120 --> 00:29:50,440
Speaker 1: sell it at a discount to what the brand would

552
00:29:50,520 --> 00:29:54,200
Speaker 1: usually sell for. And people really do want UM more

553
00:29:54,280 --> 00:29:56,680
Speaker 1: for less. They're in a mindset to kind of save

554
00:29:56,760 --> 00:30:00,560
Speaker 1: money and you know, get good value for they're spending.

555
00:30:00,560 --> 00:30:02,480
Speaker 1: And that's just a wonderful way to do it. And

556
00:30:03,000 --> 00:30:05,000
Speaker 1: also the last year people just haven't had that treasure

557
00:30:05,040 --> 00:30:07,960
Speaker 1: hunt experience, so they're really excited to get back out

558
00:30:08,000 --> 00:30:10,920
Speaker 1: there and shop at a Ross store. And you know,

559
00:30:11,000 --> 00:30:12,960
Speaker 1: we think the business is going to do very, very

560
00:30:12,960 --> 00:30:16,360
Speaker 1: well long term. You know, I learned I can relate

561
00:30:16,480 --> 00:30:20,080
Speaker 1: to those retiree golfers because I play an average amount

562
00:30:20,080 --> 00:30:22,680
Speaker 1: of golf, but I take twice as many strokes as

563
00:30:22,760 --> 00:30:24,719
Speaker 1: most people. You know, it's kind of the same thing.

564
00:30:25,440 --> 00:30:28,760
Speaker 1: I mean, you like that one, Chris, that's an excellent one.

565
00:30:28,880 --> 00:30:32,280
Speaker 1: Maybe your best of the deck. One of them had

566
00:30:32,320 --> 00:30:38,480
Speaker 1: to be right. It's just a little bar stand clear

567
00:30:38,600 --> 00:30:42,600
Speaker 1: of the craziest things we saw in markets this week. Well,

568
00:30:42,600 --> 00:30:44,480
Speaker 1: speaking up best of the day, I think it's time

569
00:30:44,560 --> 00:30:47,080
Speaker 1: for the segment that many people look forward to as

570
00:30:47,200 --> 00:30:49,080
Speaker 1: the best of what goes up here, and that is

571
00:30:49,480 --> 00:30:52,960
Speaker 1: the craziest things we saw in markets this week. Lauren,

572
00:30:53,000 --> 00:30:55,640
Speaker 1: hopefully they warned you about this gimmick. Not a gimmick,

573
00:30:55,680 --> 00:30:59,240
Speaker 1: not a gimmick, tradition, tradition of ours. And you can't prepare.

574
00:30:59,320 --> 00:31:02,000
Speaker 1: But Chris, I know you can't prepare. What is the

575
00:31:02,000 --> 00:31:04,920
Speaker 1: craziest thing you saw this week? I have to say,

576
00:31:04,960 --> 00:31:08,760
Speaker 1: as somebody who's overseen about ninety million stories about the

577
00:31:08,800 --> 00:31:11,920
Speaker 1: looming threat of inflation to the market and to everything

578
00:31:11,960 --> 00:31:16,040
Speaker 1: else over the last two months. The sight of the

579
00:31:16,160 --> 00:31:21,360
Speaker 1: ten year note going down below one fifty on the yield. Really,

580
00:31:21,800 --> 00:31:24,840
Speaker 1: I'm not generally a bond guy, so I'm basically like

581
00:31:24,960 --> 00:31:27,360
Speaker 1: looking and kind of gawking and disbelief at everything that

582
00:31:27,400 --> 00:31:30,200
Speaker 1: goes on in that market. But that one of all

583
00:31:30,240 --> 00:31:33,120
Speaker 1: of the non consensus things to happen in the last

584
00:31:33,600 --> 00:31:36,680
Speaker 1: little while, and there's been a lot of them, that

585
00:31:36,760 --> 00:31:40,640
Speaker 1: really strikes me as the craziest, certainly the craziest thing

586
00:31:40,640 --> 00:31:42,120
Speaker 1: I've see. I go, we woke up and there was

587
00:31:42,160 --> 00:31:44,600
Speaker 1: a bunch of a werts on the terminal showing it

588
00:31:44,720 --> 00:31:47,840
Speaker 1: going below one fifty and being the lowest and two months,

589
00:31:47,840 --> 00:31:50,480
Speaker 1: And I'm like, is this another instance of me not

590
00:31:50,600 --> 00:31:54,560
Speaker 1: understanding the way bond yields move? But alas no, they

591
00:31:54,640 --> 00:31:58,000
Speaker 1: continue to uh and and the part of the bond

592
00:31:58,040 --> 00:32:00,920
Speaker 1: market that usedes a proxy for inflation and break even,

593
00:32:00,920 --> 00:32:06,240
Speaker 1: but clearly the concerns about eating price pressures, etcetera, and

594
00:32:06,280 --> 00:32:09,360
Speaker 1: all these things we're supposed to derail, basically everything have

595
00:32:09,520 --> 00:32:12,440
Speaker 1: just dried up. And I I feel like there's a

596
00:32:13,120 --> 00:32:15,040
Speaker 1: probably a lot of good stories to be written on

597
00:32:15,080 --> 00:32:17,280
Speaker 1: why that's going on, because we've written all of the

598
00:32:17,320 --> 00:32:20,400
Speaker 1: possible stories, literally all of them in the universe about

599
00:32:20,400 --> 00:32:23,000
Speaker 1: why Bonn yields were heading to two and three and four,

600
00:32:23,760 --> 00:32:26,200
Speaker 1: and not that many of them even contained like the

601
00:32:26,240 --> 00:32:30,040
Speaker 1: to be sure sections that could fall between fifty. But

602
00:32:30,600 --> 00:32:34,080
Speaker 1: I mean, I guess it's not great news for uh

603
00:32:34,280 --> 00:32:38,440
Speaker 1: people who read sort of demand for money as kind

604
00:32:38,480 --> 00:32:41,520
Speaker 1: of a growth proxy. And I guess it is good

605
00:32:41,520 --> 00:32:43,400
Speaker 1: news if you're worried that inflation is going to come

606
00:32:43,480 --> 00:32:46,800
Speaker 1: tear tear all of the houses down. But um, yeah,

607
00:32:47,000 --> 00:32:50,440
Speaker 1: that one was a bit of a nutso head scratcher

608
00:32:50,480 --> 00:32:52,280
Speaker 1: for me. I'm still trying to get my mind around

609
00:32:52,320 --> 00:32:55,560
Speaker 1: what's going on there. Yeah, agreed, I haven't seen any

610
00:32:55,680 --> 00:32:59,520
Speaker 1: real believable explanations were it either. I mean, it's not

611
00:32:59,680 --> 00:33:04,480
Speaker 1: like we were for Financial News Service. I think maybe

612
00:33:04,480 --> 00:33:07,080
Speaker 1: the Wall Street that's crowd found out there were shorts

613
00:33:07,080 --> 00:33:09,520
Speaker 1: in the bond market. That's my that's my theory. Oh

614
00:33:09,520 --> 00:33:16,120
Speaker 1: my god, it's all your plans for the next week, Lauren.

615
00:33:16,120 --> 00:33:18,360
Speaker 1: How about you, what's the craziest thing you saw this week?

616
00:33:18,520 --> 00:33:22,600
Speaker 1: The craziest thing I saw this week was the Gap

617
00:33:22,840 --> 00:33:26,040
Speaker 1: sold out in three hours of a puffer jacket that

618
00:33:26,080 --> 00:33:31,080
Speaker 1: they released yesterday. Jacket, Yes in the in the middle

619
00:33:31,080 --> 00:33:35,000
Speaker 1: of June. It was the Kanye West collaboration and it

620
00:33:35,120 --> 00:33:39,440
Speaker 1: was electric blue. It was this very vibrant, bright color.

621
00:33:39,600 --> 00:33:41,560
Speaker 1: Puffer jackets are actually going to be really big for

622
00:33:41,600 --> 00:33:45,080
Speaker 1: the fall. But just the speed at which it sold out,

623
00:33:45,440 --> 00:33:48,480
Speaker 1: What a great collaboration for the Gap. You know that

624
00:33:48,600 --> 00:33:51,040
Speaker 1: brand's really struggled over a very long period of time,

625
00:33:51,120 --> 00:33:54,520
Speaker 1: but the collaborations have been, um, you know, just a

626
00:33:55,680 --> 00:33:57,960
Speaker 1: shot in the arm for them, and it's really good

627
00:33:58,000 --> 00:34:00,200
Speaker 1: to see that. So um you know, I think that

628
00:34:00,240 --> 00:34:02,600
Speaker 1: turned a lot of heads. I was really surprised. Did

629
00:34:02,680 --> 00:34:05,680
Speaker 1: you buy one, Mike? Well, Chris, I was gonna say,

630
00:34:05,720 --> 00:34:08,360
Speaker 1: it's good intelligence for me because I've been dieting and

631
00:34:08,400 --> 00:34:10,279
Speaker 1: now if I know that puffer jackets are gonna be

632
00:34:10,400 --> 00:34:11,839
Speaker 1: big in the fault, what's the point No one will

633
00:34:11,880 --> 00:34:13,680
Speaker 1: be able to tell anyway. I can just wear my

634
00:34:13,680 --> 00:34:18,080
Speaker 1: puffer jacket. Everyone, you look great, great, thanks Chris. All right,

635
00:34:18,080 --> 00:34:19,920
Speaker 1: Well that's a good one. I uh, you know, I

636
00:34:19,960 --> 00:34:22,719
Speaker 1: saw that. I saw the Kanye West puffer jacket thing,

637
00:34:22,719 --> 00:34:24,800
Speaker 1: and I was, and I hadn't thought of a market

638
00:34:24,800 --> 00:34:26,200
Speaker 1: t angle, but you got you got it right there

639
00:34:26,200 --> 00:34:28,520
Speaker 1: with the gap. I wonder if the gap price is

640
00:34:28,600 --> 00:34:30,080
Speaker 1: reacting to that. I don't know. I'll have to check

641
00:34:30,160 --> 00:34:33,399
Speaker 1: the trusty Bloomberg see if people are are loading into

642
00:34:33,400 --> 00:34:36,319
Speaker 1: the gap shares because of the Kanye puffer jacket. That

643
00:34:36,400 --> 00:34:38,480
Speaker 1: that would truly be a crazy thing for all of us.

644
00:34:38,560 --> 00:34:42,080
Speaker 1: But all right, I'm going to dip into my favorite

645
00:34:42,360 --> 00:34:45,480
Speaker 1: UH space, which is the alternative asset class. And and

646
00:34:45,520 --> 00:34:49,319
Speaker 1: this is when I say alternative, I really be an alternative.

647
00:34:49,719 --> 00:34:51,760
Speaker 1: And you might not even argue that this has nothing

648
00:34:51,800 --> 00:34:54,439
Speaker 1: to do with markets, but I'll tell you why it does. Chris.

649
00:34:54,480 --> 00:34:55,960
Speaker 1: As you know, I've been editing a lot of Joe

650
00:34:55,960 --> 00:35:00,279
Speaker 1: wisen Ball lately, and he always uses the notion of

651
00:35:00,440 --> 00:35:04,239
Speaker 1: the funding for a whaling expedition as sort of the

652
00:35:04,239 --> 00:35:07,160
Speaker 1: original base case for capital markets. You know, you lay

653
00:35:07,160 --> 00:35:10,440
Speaker 1: off the risk of not getting any whales through investors. Anyway,

654
00:35:10,520 --> 00:35:12,239
Speaker 1: It's a bit of a stretch, but but hear me out,

655
00:35:12,600 --> 00:35:15,879
Speaker 1: and I'm gonna read a headline from the New York Post.

656
00:35:16,000 --> 00:35:18,600
Speaker 1: I'll read the lead of a story from a New

657
00:35:18,680 --> 00:35:22,960
Speaker 1: York Post it's about a whaling expedition uh in the

658
00:35:23,000 --> 00:35:25,840
Speaker 1: Middle East. I believe it was. Where was it? Um

659
00:35:25,920 --> 00:35:30,840
Speaker 1: off the coast of Yemen. Fisherman catch two pounds chunk

660
00:35:31,000 --> 00:35:35,160
Speaker 1: of whale vombit worth one point five million dollars. So

661
00:35:35,200 --> 00:35:37,800
Speaker 1: why you might ask who a chunk of whale vombit?

662
00:35:37,920 --> 00:35:40,959
Speaker 1: You were one point five million, which is a valid question.

663
00:35:41,040 --> 00:35:43,000
Speaker 1: I thought it was going in a museum somewhere, or

664
00:35:43,080 --> 00:35:44,799
Speaker 1: maybe someone made an n f T out of it

665
00:35:44,880 --> 00:35:50,880
Speaker 1: or something. But apparently this piece of of whale vomit

666
00:35:51,000 --> 00:35:56,120
Speaker 1: is so valuable because it contains uh, something that's known

667
00:35:56,160 --> 00:35:59,680
Speaker 1: as and I'm totally gonna mispronounce it here, um, but

668
00:36:00,239 --> 00:36:02,120
Speaker 1: I will try to pronounce it. Let me just find

669
00:36:02,120 --> 00:36:05,120
Speaker 1: it in the story here. Um. I'm really not as

670
00:36:05,160 --> 00:36:08,560
Speaker 1: prepared as I should be for this segment. Um anyway,

671
00:36:09,160 --> 00:36:17,399
Speaker 1: amberg ambergriss, ambergriss. And the reason ambergriss is so expensive, ironically,

672
00:36:18,640 --> 00:36:23,200
Speaker 1: is because it's used in perfume. Um. It's an odorless

673
00:36:23,239 --> 00:36:27,480
Speaker 1: alcohol that makes fragrances last longer. And the whalers were

674
00:36:27,520 --> 00:36:32,400
Speaker 1: drawn to this whale by um an overpowering scent of

675
00:36:32,440 --> 00:36:34,759
Speaker 1: fecal matter. This is according to the New York Post here,

676
00:36:35,719 --> 00:36:39,120
Speaker 1: so you're drawn. You're drawn to a whale with an

677
00:36:39,120 --> 00:36:43,560
Speaker 1: overwhelming scent of fecal matter. To get this material out

678
00:36:43,600 --> 00:36:45,919
Speaker 1: of the guts of the whale. That is priceless for

679
00:36:45,920 --> 00:36:50,080
Speaker 1: for fume makers because it's odorless. A lot to wrap

680
00:36:50,080 --> 00:36:51,719
Speaker 1: your head around this story, and that's why it's the

681
00:36:51,760 --> 00:36:54,560
Speaker 1: craziest thing I saw. But that is all I got

682
00:36:54,600 --> 00:36:56,399
Speaker 1: on that story. I think we've all heard enough about

683
00:36:56,400 --> 00:37:02,359
Speaker 1: that story. But Chris and Lauren, that's all the time

684
00:37:02,400 --> 00:37:05,279
Speaker 1: we have this week. Thank you so much, great conversation,

685
00:37:05,440 --> 00:37:09,480
Speaker 1: and Lauren, you've you've raised my my optimism level greatly

686
00:37:09,520 --> 00:37:13,359
Speaker 1: because absolutely I agree. I feel much better. Sensible people

687
00:37:13,400 --> 00:37:16,040
Speaker 1: are back in charge. Well good. Thank you so much

688
00:37:16,040 --> 00:37:26,680
Speaker 1: for hosting What Goes Up. Will be back next week

689
00:37:26,760 --> 00:37:28,840
Speaker 1: and something. You can find us on the Bloomberg Terminal

690
00:37:28,880 --> 00:37:32,560
Speaker 1: website and app or wherever you get your podcasts. We'd

691
00:37:32,560 --> 00:37:34,040
Speaker 1: love it if you took the time to rate and

692
00:37:34,120 --> 00:37:36,799
Speaker 1: review the show on Apple Podcasts. Some more listeners can

693
00:37:36,840 --> 00:37:39,480
Speaker 1: find us, and you can find us on Twitter, follow

694
00:37:39,520 --> 00:37:43,359
Speaker 1: me at Rea Anonymous, Chris nag Is at Chris nag One.

695
00:37:43,880 --> 00:37:47,719
Speaker 1: You can also follow Bloomberg Podcasts at podcast and Thank

696
00:37:47,760 --> 00:37:49,799
Speaker 1: you to Charlie Pell, to Bloomberg Radio and the voice

697
00:37:49,840 --> 00:37:52,480
Speaker 1: of the New York City subway system. What Goes Up

698
00:37:52,560 --> 00:37:55,600
Speaker 1: is produced by Tofur Fourheads. The head of Bloomberg Podcasts

699
00:37:55,680 --> 00:37:58,319
Speaker 1: is Francesco Leaving. Thanks for listening, See you next time.

700
00:38:01,000 --> 00:38:01,160
Speaker 1: Thing