1 00:00:00,080 --> 00:00:08,720 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news, Bloomberg Money. 2 00:00:11,960 --> 00:00:15,080 Speaker 2: This is the Bloomberg Money Podcast. I'm Tom Keene with 3 00:00:15,120 --> 00:00:18,200 Speaker 2: Scarlet Food. Join us each week for a smart look 4 00:00:18,520 --> 00:00:22,320 Speaker 2: at the forces shaping your financial life. On personal finance, 5 00:00:22,560 --> 00:00:26,720 Speaker 2: on retirement, and wealth management. We will explore how people 6 00:00:26,760 --> 00:00:31,280 Speaker 2: are earning, investing, and building wealth. We are live Fridays 7 00:00:31,320 --> 00:00:35,320 Speaker 2: at noon Eastern on Bloomberg Television. Subscribe to the podcast 8 00:00:35,360 --> 00:00:38,800 Speaker 2: wherever you listen, and is always on the Bloomberg terminal 9 00:00:39,200 --> 00:00:42,839 Speaker 2: and the Bloomberg Business app. Well, Scarlet and I have 10 00:00:42,920 --> 00:00:45,559 Speaker 2: done for years back ages ago when we were together 11 00:00:45,720 --> 00:00:49,200 Speaker 2: as good conversation with the street. But far more importantly, 12 00:00:49,240 --> 00:00:52,560 Speaker 2: there's everyone at Bloomberg working each and every day again 13 00:00:52,600 --> 00:00:56,120 Speaker 2: on personal finance, retirement and our jobs for David Gurrow, 14 00:00:56,120 --> 00:00:59,320 Speaker 2: with us of course Bloomberg this weekend Nikki Waller driving 15 00:00:59,400 --> 00:01:03,120 Speaker 2: all of our money vertical and personal finance. Congratulations on 16 00:01:03,200 --> 00:01:05,280 Speaker 2: this moment. This is great. Thank you Tom. 17 00:01:05,319 --> 00:01:07,680 Speaker 1: Congratulations to you and Scarlet on this one. 18 00:01:07,720 --> 00:01:09,880 Speaker 2: Well, we're having fun with it, but nothing matters. Because 19 00:01:09,920 --> 00:01:13,120 Speaker 2: Michael McKee was a five am looking for the jobs report. 20 00:01:13,319 --> 00:01:17,360 Speaker 2: I heard Wow's when the report came out. Were you surprised. Oh, 21 00:01:17,400 --> 00:01:19,560 Speaker 2: I was very surprised. Everybody was surprised by this. 22 00:01:20,160 --> 00:01:23,800 Speaker 3: I'm talking with Stephanie Wolf right before the number came 23 00:01:23,800 --> 00:01:25,319 Speaker 3: out and she said, well, you know, I have an 24 00:01:25,440 --> 00:01:27,240 Speaker 3: estimate that's like one hundred and five. 25 00:01:27,080 --> 00:01:31,000 Speaker 2: And I hope that's not too high. It was way low. 26 00:01:31,240 --> 00:01:33,800 Speaker 3: And the thing that was even more impressive about it 27 00:01:33,880 --> 00:01:36,679 Speaker 3: was that we saw April revised up significantly to one 28 00:01:36,760 --> 00:01:38,959 Speaker 3: hundred and seventy nine thousand from one hundred and fifteen. 29 00:01:39,160 --> 00:01:43,800 Speaker 2: Percolating in this report, is this wage inflation linkage? Are 30 00:01:43,840 --> 00:01:45,839 Speaker 2: we approaching that debate correctly? 31 00:01:46,720 --> 00:01:49,560 Speaker 3: Well, it depends on what you mean by correctly. Right now, 32 00:01:49,680 --> 00:01:52,800 Speaker 3: what we're seeing is a slowdown in average hourly earnings 33 00:01:52,840 --> 00:01:55,520 Speaker 3: in part because a number of the jobs that were created, 34 00:01:55,520 --> 00:01:57,480 Speaker 3: the majority of the jobs were created or in the 35 00:01:57,680 --> 00:02:02,520 Speaker 3: lower income area. So the K shaped economy situation goes 36 00:02:02,560 --> 00:02:06,400 Speaker 3: on because we're seeing inflation above that. And Scarlett was 37 00:02:06,400 --> 00:02:09,320 Speaker 3: talking about in the introduction the CPI next week, and 38 00:02:09,360 --> 00:02:11,920 Speaker 3: that could have a major impact on what the markets 39 00:02:11,960 --> 00:02:14,800 Speaker 3: think the Fed is going to do, particularly since they 40 00:02:14,880 --> 00:02:17,520 Speaker 3: moved so much today on the jobs report. 41 00:02:17,639 --> 00:02:20,399 Speaker 2: Can I ask you a question, please? Is he tieless now? 42 00:02:20,440 --> 00:02:23,120 Speaker 2: Because of chairman worship. Is this like a new McKey 43 00:02:23,200 --> 00:02:26,440 Speaker 2: look that we're seeing, This is neady done now he's 44 00:02:26,480 --> 00:02:28,520 Speaker 2: doing it with ye yeah, it's Friday. 45 00:02:29,600 --> 00:02:31,960 Speaker 4: I like it. I like the tyleist look for McKee. 46 00:02:32,440 --> 00:02:34,480 Speaker 4: David Garrel also in the introduction to our show, you 47 00:02:34,480 --> 00:02:36,680 Speaker 4: saw that I paid for coffee with a twenty dollars 48 00:02:36,680 --> 00:02:39,560 Speaker 4: bill and didn't get any change. This idea of rising 49 00:02:39,600 --> 00:02:42,239 Speaker 4: prices and inflation. This is going to have massive implications 50 00:02:42,240 --> 00:02:43,760 Speaker 4: for the midterm elections. 51 00:02:43,320 --> 00:02:43,640 Speaker 5: Isn't it. 52 00:02:43,639 --> 00:02:44,119 Speaker 2: Absolutely? 53 00:02:44,120 --> 00:02:47,160 Speaker 6: It's what Bill Galston calls the political power of affordability. 54 00:02:47,320 --> 00:02:50,040 Speaker 6: And I think you said at the top, we're all 55 00:02:50,040 --> 00:02:51,720 Speaker 6: focused on what the CPI DA is going to be 56 00:02:51,919 --> 00:02:54,920 Speaker 6: pc data. I think Americans are focused on things like 57 00:02:54,960 --> 00:02:56,800 Speaker 6: that cup of coffee, and I think there's a limit 58 00:02:56,840 --> 00:02:59,639 Speaker 6: to how inured we can get to paying six, seven, 59 00:02:59,720 --> 00:03:02,280 Speaker 6: eight late you twenty dollars for the cup from the 60 00:03:02,320 --> 00:03:05,240 Speaker 6: cart outside. I think we're reaching a point which people 61 00:03:05,240 --> 00:03:07,840 Speaker 6: are acknowledging that. Obviously we've seen the spending trends here 62 00:03:07,840 --> 00:03:10,600 Speaker 6: over the last few months start to change. We hear 63 00:03:10,639 --> 00:03:13,639 Speaker 6: the administration touting how Americans are relying on are still 64 00:03:13,760 --> 00:03:15,960 Speaker 6: using their credit cards, not sure, if that's a wholly 65 00:03:16,000 --> 00:03:17,760 Speaker 6: positive thing, if Americans are doing that. 66 00:03:17,880 --> 00:03:20,040 Speaker 4: So what do you think is the Trump's administration's talking 67 00:03:20,080 --> 00:03:22,560 Speaker 4: points on inflation? Then well, Kevin hass at the head 68 00:03:22,600 --> 00:03:25,760 Speaker 4: of the NEC go on TV to address the public 69 00:03:25,800 --> 00:03:27,639 Speaker 4: about inflation the same way he did to take a 70 00:03:27,680 --> 00:03:29,480 Speaker 4: victory lap on jobs today, I. 71 00:03:29,440 --> 00:03:30,160 Speaker 5: Don't think he will. 72 00:03:30,200 --> 00:03:31,760 Speaker 6: And I think this is an administration that's still really 73 00:03:31,800 --> 00:03:34,640 Speaker 6: struggling with this issue. And I think you've heard in 74 00:03:34,680 --> 00:03:38,400 Speaker 6: recent days Republicans on Capitol Hill expressing their displeasure with 75 00:03:38,440 --> 00:03:40,480 Speaker 6: the fact that the President has other things that are 76 00:03:40,480 --> 00:03:44,400 Speaker 6: attracting his attention, the warchief among them. As this pain 77 00:03:44,440 --> 00:03:46,680 Speaker 6: really hits Americans across the country, they're looking, I think, 78 00:03:46,720 --> 00:03:48,640 Speaker 6: for some indication from this White House of what the 79 00:03:48,680 --> 00:03:51,440 Speaker 6: plan is. That's true, Lawmakers, it's true the American people 80 00:03:51,440 --> 00:03:51,720 Speaker 6: as well. 81 00:03:51,840 --> 00:03:54,960 Speaker 2: Some of the voices of Bloomberg on inflation. Let's listen. 82 00:03:56,480 --> 00:03:59,240 Speaker 7: In the pre COVID world, no major economy was able 83 00:03:59,280 --> 00:04:02,600 Speaker 7: to get two percent inflation. In the post COVID world, 84 00:04:02,760 --> 00:04:05,520 Speaker 7: you know, everybody's every major economy is hanging out at 85 00:04:05,560 --> 00:04:07,200 Speaker 7: three near three or three plus. 86 00:04:07,360 --> 00:04:10,120 Speaker 8: The reason why inflation's been the focus is because we've 87 00:04:10,160 --> 00:04:12,480 Speaker 8: been running above target for a while. There's only so 88 00:04:12,560 --> 00:04:15,200 Speaker 8: many times you can say, well, this is a function 89 00:04:15,280 --> 00:04:19,480 Speaker 8: of this idiosymocratic factor, this outward pressure is a function 90 00:04:19,520 --> 00:04:22,680 Speaker 8: of terrorists, and that'll go away. You know, if everything 91 00:04:22,720 --> 00:04:24,480 Speaker 8: is it's idiosyncratic, then nothing is. 92 00:04:24,680 --> 00:04:28,240 Speaker 9: We've seen durable goods inflation go up and remain up 93 00:04:28,320 --> 00:04:30,280 Speaker 9: over the course of the last year, and that could 94 00:04:30,320 --> 00:04:33,080 Speaker 9: be another area where we're seeing this stickiness and inflation. 95 00:04:33,320 --> 00:04:36,080 Speaker 9: If inflation goes up and remains up, certainly we don't 96 00:04:36,120 --> 00:04:38,440 Speaker 9: have that price into yields, and certainly we don't have 97 00:04:38,520 --> 00:04:40,560 Speaker 9: that priced into the equity market. 98 00:04:41,000 --> 00:04:43,719 Speaker 2: Kim Dawson the New Age, Well, David Gerrow, I look 99 00:04:43,760 --> 00:04:46,599 Speaker 2: at that, and to me, with this election, you're the 100 00:04:46,640 --> 00:04:51,200 Speaker 2: adult here. It's a midterm election. In this July feels 101 00:04:51,240 --> 00:04:53,560 Speaker 2: like the last week of August or the first week 102 00:04:53,560 --> 00:04:57,760 Speaker 2: of September. Does everything within your words seem rushed this timer? 103 00:04:57,800 --> 00:04:59,480 Speaker 6: It does, And that's partly because we've just been through 104 00:04:59,480 --> 00:05:02,120 Speaker 6: this week where we had six key primary states voting. 105 00:05:02,600 --> 00:05:04,920 Speaker 6: I think that's making us feel like the midterms are real, 106 00:05:05,200 --> 00:05:07,000 Speaker 6: and I think in a lot of those races in Iowa, 107 00:05:07,080 --> 00:05:09,320 Speaker 6: in California, you're seeing this issue of cost of living 108 00:05:09,360 --> 00:05:11,960 Speaker 6: really becoming something that's animating voters. So I think you're 109 00:05:12,000 --> 00:05:14,400 Speaker 6: right about the compression of the timetable here. I think 110 00:05:14,400 --> 00:05:17,080 Speaker 6: it's also distilling for us what the animating issues are 111 00:05:17,080 --> 00:05:18,360 Speaker 6: going to be as we get closer in November. 112 00:05:18,400 --> 00:05:20,160 Speaker 2: What don't we do your Bloomberg money is try to 113 00:05:20,160 --> 00:05:22,479 Speaker 2: get out in front of next week's show, NICKI Waller's 114 00:05:22,520 --> 00:05:25,080 Speaker 2: in charge of that, driving all that we have, and 115 00:05:25,120 --> 00:05:27,240 Speaker 2: on next week's show, there is no other topic than 116 00:05:27,279 --> 00:05:30,640 Speaker 2: this history of SpaceX. How are you and your personal 117 00:05:30,680 --> 00:05:34,440 Speaker 2: finance team our money vertical? How are you treating this 118 00:05:34,640 --> 00:05:35,719 Speaker 2: historic Musk moment? 119 00:05:36,240 --> 00:05:37,480 Speaker 5: Well, that is absolutely right. 120 00:05:37,560 --> 00:05:40,599 Speaker 1: We will be back here next week talking about the SPACEXIPO, 121 00:05:40,680 --> 00:05:41,560 Speaker 1: which happens. 122 00:05:41,240 --> 00:05:42,159 Speaker 5: One Friday morning. 123 00:05:43,240 --> 00:05:45,240 Speaker 1: But right now we are looking at this as a 124 00:05:45,320 --> 00:05:49,440 Speaker 1: huge moment for retail investors. Elon Musk has reserved about 125 00:05:49,440 --> 00:05:53,120 Speaker 1: thirty percent of the SpaceX float next week for retail clients. 126 00:05:53,120 --> 00:05:57,000 Speaker 1: That is absolutely huge and represents it's a flipping of 127 00:05:57,040 --> 00:05:59,680 Speaker 1: the order. Usually wall Street gets in first and then 128 00:05:59,720 --> 00:06:01,680 Speaker 1: the rest of us get a chance. But this is 129 00:06:01,720 --> 00:06:04,000 Speaker 1: really opening it up to his fans. 130 00:06:03,839 --> 00:06:09,040 Speaker 2: Leading a leading professor someone I respect immensely so that 131 00:06:09,160 --> 00:06:12,520 Speaker 2: it's way over priced. He's coming in thirty dollars underneath. 132 00:06:12,720 --> 00:06:16,080 Speaker 2: Who's going to protect retail in this pricing. 133 00:06:16,400 --> 00:06:19,320 Speaker 1: Well, that's been a real debate, So we're seeing that 134 00:06:19,560 --> 00:06:22,200 Speaker 1: there's a lot of fomo. There are some traditional places 135 00:06:22,240 --> 00:06:25,080 Speaker 1: like the Nasdaq one hundred that are only waiting fifteen 136 00:06:25,160 --> 00:06:29,240 Speaker 1: trading days to put SpaceX in. However, last night we 137 00:06:29,320 --> 00:06:32,000 Speaker 1: also saw the S and P holding the line and 138 00:06:32,040 --> 00:06:35,680 Speaker 1: saying that they're going to wait twelve months before they 139 00:06:35,800 --> 00:06:38,360 Speaker 1: let SpaceX in the indices, which means all of us 140 00:06:38,480 --> 00:06:42,200 Speaker 1: who are safe passive investors will eventually be in SpaceX, 141 00:06:42,279 --> 00:06:46,080 Speaker 1: but maybe we'll get to sidestep some of that initial volatility. 142 00:06:46,160 --> 00:06:48,960 Speaker 4: So it definitely created divergence between each GF that track, 143 00:06:49,040 --> 00:06:51,160 Speaker 4: the Nadak versus the S and P five hundred, and 144 00:06:51,200 --> 00:06:54,680 Speaker 4: the Queues versus a spire vu. The other thing that 145 00:06:54,720 --> 00:06:57,599 Speaker 4: you've been covering is that SpaceX employees are going to 146 00:06:57,640 --> 00:07:00,880 Speaker 4: get rich, and they're also organized and thinking about how 147 00:07:00,880 --> 00:07:03,400 Speaker 4: they're going to manage their money, and they're doing so 148 00:07:03,520 --> 00:07:05,960 Speaker 4: by looking at wealth management and saying, I think we 149 00:07:06,000 --> 00:07:06,880 Speaker 4: need a deal here. 150 00:07:07,080 --> 00:07:12,120 Speaker 1: This is such a fascinating moment Elon Musk, who hates unions, 151 00:07:12,560 --> 00:07:15,400 Speaker 1: who has said that employees banning together doesn't help. These 152 00:07:15,440 --> 00:07:19,200 Speaker 1: employees who are on the precipice of becoming millionaires, have 153 00:07:19,320 --> 00:07:22,840 Speaker 1: been gathering together to lower their fees and to get 154 00:07:22,920 --> 00:07:23,880 Speaker 1: better terms for each. 155 00:07:23,800 --> 00:07:25,800 Speaker 2: We got to run. Are you going to the road show? 156 00:07:26,760 --> 00:07:27,400 Speaker 2: The road show? 157 00:07:27,440 --> 00:07:29,320 Speaker 1: Noah, you're in the office time. 158 00:07:30,360 --> 00:07:32,200 Speaker 2: You the one person who knows that's going to slip 159 00:07:32,240 --> 00:07:35,080 Speaker 2: into the retail road show and get the merchon, you know, 160 00:07:35,120 --> 00:07:35,800 Speaker 2: all the rest of it. 161 00:07:35,840 --> 00:07:37,160 Speaker 5: Bring it back to here next week. 162 00:07:37,480 --> 00:07:39,720 Speaker 2: We'll have to see. To me, it's an historic moment. 163 00:07:39,760 --> 00:07:41,400 Speaker 2: I mean, Mike, you and I go way back on this. 164 00:07:41,880 --> 00:07:43,240 Speaker 2: We'll see, but we're going to do it next week. 165 00:07:43,240 --> 00:07:46,360 Speaker 2: We've got some great guests lined up as well. David 166 00:07:46,360 --> 00:07:48,800 Speaker 2: Gerrel Bloomberg this weekend. You're going to show up this week. 167 00:07:48,840 --> 00:07:50,400 Speaker 2: I'll be there. What does it look like? Give me 168 00:07:50,400 --> 00:07:50,840 Speaker 2: one guess. 169 00:07:51,200 --> 00:07:53,000 Speaker 6: We're going to have the former US ambassador to Israel's 170 00:07:53,000 --> 00:07:54,240 Speaker 6: continue to talk about the Middle East. 171 00:07:54,240 --> 00:07:55,480 Speaker 5: It is still a big focus, which. 172 00:07:55,360 --> 00:07:59,080 Speaker 2: Is going to still be a huge, huge story. You're 173 00:07:59,120 --> 00:08:02,160 Speaker 2: listening to Blue Money. Stay with us with more to 174 00:08:02,160 --> 00:08:08,119 Speaker 2: come after this. Welcome back to Bloomberg Money, Tom Caenan 175 00:08:08,160 --> 00:08:11,720 Speaker 2: Scarlett Foo here, the market's charging for love to see 176 00:08:12,000 --> 00:08:15,800 Speaker 2: on that into the weekend. We talked about inflation, and 177 00:08:15,800 --> 00:08:18,480 Speaker 2: there's a lot of other themes to talk about. Gabby 178 00:08:18,520 --> 00:08:20,160 Speaker 2: Santos coming up in the next half hour. 179 00:08:20,280 --> 00:08:22,880 Speaker 4: Yeah, really looking forward to that, especially in so far 180 00:08:22,880 --> 00:08:24,840 Speaker 4: as how you allocate, whether you're go into stocks, whether 181 00:08:24,920 --> 00:08:27,240 Speaker 4: you're going to bonds. Inflation means we need all our 182 00:08:27,280 --> 00:08:28,400 Speaker 4: investments to work harder for us. 183 00:08:28,440 --> 00:08:31,080 Speaker 2: When we look personal finance, you look retirement, we look 184 00:08:31,160 --> 00:08:33,959 Speaker 2: wealth management. It is to lift the bar, to raise 185 00:08:34,000 --> 00:08:37,320 Speaker 2: the dialogue. She's been doing it for decades. Liz Ansanders 186 00:08:37,559 --> 00:08:40,400 Speaker 2: of Charles Schwab joins us today, and I'm supposed to say, 187 00:08:40,400 --> 00:08:43,720 Speaker 2: how do I stay invested? What sectors look like, what's 188 00:08:43,800 --> 00:08:46,720 Speaker 2: momentum like? And then you stop me cold. Three days 189 00:08:46,760 --> 00:08:49,400 Speaker 2: ago on LinkedIn with a clearic call. What was the 190 00:08:49,440 --> 00:08:52,760 Speaker 2: catalyst for you to say betting's a drug? 191 00:08:54,200 --> 00:08:58,400 Speaker 10: How increasingly casino like the market looks? You know, I 192 00:08:58,480 --> 00:09:00,720 Speaker 10: was thinking about this the other day. It reminds me 193 00:09:00,800 --> 00:09:04,840 Speaker 10: of one of the famous Benjamin Graham quotes about in 194 00:09:04,880 --> 00:09:06,959 Speaker 10: the short term, the market is a voting machine. In 195 00:09:07,000 --> 00:09:09,000 Speaker 10: a long term, it's a weighing machine. But we now 196 00:09:09,040 --> 00:09:13,880 Speaker 10: have this entire infrastructure associated with short term trading. That 197 00:09:14,160 --> 00:09:17,840 Speaker 10: now is the ecosystem in which these traders live, and 198 00:09:17,880 --> 00:09:20,320 Speaker 10: it's geared to the voting machine, and many of them 199 00:09:20,400 --> 00:09:22,520 Speaker 10: having to be even met the weighing machine. 200 00:09:22,520 --> 00:09:24,839 Speaker 2: But the hallmark of your work over the decades. So 201 00:09:24,880 --> 00:09:26,600 Speaker 2: if you can bring it up right now, guys, give 202 00:09:26,640 --> 00:09:30,160 Speaker 2: me the more the money mustery. This is terce Lizanne Sanders. 203 00:09:30,400 --> 00:09:34,040 Speaker 2: This is different than talking about the markets the gambler 204 00:09:34,440 --> 00:09:38,360 Speaker 2: hopes the investor owns. This distinction has never been more 205 00:09:38,400 --> 00:09:41,800 Speaker 2: important to articulate. Clearly, here's the key line for me 206 00:09:41,840 --> 00:09:46,000 Speaker 2: in Scarlett. The youngest generation of investors inundated with a 207 00:09:46,040 --> 00:09:50,440 Speaker 2: message that investing and gambling are essentially the same thing. 208 00:09:51,000 --> 00:09:55,479 Speaker 2: Every single mail I get, people are furious, who's the regulator. 209 00:09:57,559 --> 00:09:58,520 Speaker 5: That's a good question. 210 00:10:00,120 --> 00:10:04,120 Speaker 10: Being terribly regulated right now, not in the betting markets, 211 00:10:04,160 --> 00:10:07,080 Speaker 10: not even in sports betting, although states do regulation to 212 00:10:07,120 --> 00:10:10,319 Speaker 10: a large degree in sports betting at the outset, clearly 213 00:10:10,400 --> 00:10:14,320 Speaker 10: just the legalization thereof which increasing number of states are 214 00:10:15,080 --> 00:10:18,560 Speaker 10: doing that. But I think we're going to have to 215 00:10:18,600 --> 00:10:21,440 Speaker 10: see some self regulation here and an emphasis on the 216 00:10:21,480 --> 00:10:24,280 Speaker 10: part of firms like ours that have been around for 217 00:10:24,760 --> 00:10:27,960 Speaker 10: five and a half decades doing what we do for 218 00:10:28,200 --> 00:10:32,160 Speaker 10: purely the individual investor and making sure that the financial 219 00:10:32,200 --> 00:10:35,000 Speaker 10: literacy component is front and center. And I think that's 220 00:10:35,040 --> 00:10:38,480 Speaker 10: what's lacking in some of the marketing associated with this, 221 00:10:38,760 --> 00:10:42,960 Speaker 10: is that financial literacy that education components. So I'm happy 222 00:10:43,000 --> 00:10:46,280 Speaker 10: to be one of the voices alongside even our founder Chuck, 223 00:10:46,320 --> 00:10:48,880 Speaker 10: who has just passionate about this subject. 224 00:10:49,160 --> 00:10:50,960 Speaker 4: Let's talk about some of the investors in the market, 225 00:10:51,000 --> 00:10:53,200 Speaker 4: because more people right now own stocks in at any 226 00:10:53,240 --> 00:10:56,040 Speaker 4: time in history, the pros who are seen as a 227 00:10:56,080 --> 00:10:59,240 Speaker 4: smart money used to belittle individual investors as a dumb 228 00:10:59,240 --> 00:11:02,160 Speaker 4: money also in the so called dumb money that's leading 229 00:11:02,200 --> 00:11:02,800 Speaker 4: the way here. 230 00:11:02,880 --> 00:11:04,400 Speaker 5: So is that a false distinction now? 231 00:11:05,200 --> 00:11:07,880 Speaker 10: I think it is, and I think that the labeling 232 00:11:07,880 --> 00:11:11,720 Speaker 10: has always been unfortunate, the smart money dumb money. I've 233 00:11:11,760 --> 00:11:17,200 Speaker 10: often equipped that maybe sometimes it's considered the dumb money 234 00:11:17,240 --> 00:11:21,080 Speaker 10: because they tend to be the contrarian indicators, not or 235 00:11:21,160 --> 00:11:23,760 Speaker 10: leaving aside the Schwab client base who are all the 236 00:11:23,760 --> 00:11:29,440 Speaker 10: smart money. But you're right, that contrarian indicator nature of 237 00:11:29,480 --> 00:11:33,280 Speaker 10: what retail investors used to be seen as they've been 238 00:11:33,320 --> 00:11:38,280 Speaker 10: more right than not. What's interesting right now is they 239 00:11:38,360 --> 00:11:43,040 Speaker 10: just represent one and now I'm speaking specifically of retail traders, 240 00:11:43,040 --> 00:11:47,520 Speaker 10: not long term individual investors. Very important distinction between those two. 241 00:11:47,880 --> 00:11:50,680 Speaker 10: But now you have other short attention span money that's 242 00:11:50,720 --> 00:11:53,640 Speaker 10: dominating day to day trading, the commodity trading advisors and 243 00:11:53,679 --> 00:11:57,000 Speaker 10: the systematic funds and the long short hedge fund community, 244 00:11:57,480 --> 00:12:01,440 Speaker 10: and they're keying off each other positioning associated with it. 245 00:12:01,480 --> 00:12:03,800 Speaker 10: That's why there's so much more research out there now 246 00:12:03,880 --> 00:12:08,360 Speaker 10: on how everybody is positioned. And then social media has 247 00:12:09,520 --> 00:12:12,480 Speaker 10: added volume to that kind of conversation. 248 00:12:12,559 --> 00:12:15,000 Speaker 4: And then you add prediction markets to the mix. I 249 00:12:15,040 --> 00:12:17,600 Speaker 4: know that Schwab, along with other firms, is considering launching 250 00:12:17,640 --> 00:12:20,640 Speaker 4: prediction markets tied to financial events as opposed to. 251 00:12:20,720 --> 00:12:22,800 Speaker 5: Sports of pop culture. Right, staying away from that. 252 00:12:22,720 --> 00:12:24,040 Speaker 2: Platt, how was that different? 253 00:12:24,240 --> 00:12:25,559 Speaker 5: How is exactly? 254 00:12:25,720 --> 00:12:28,320 Speaker 2: Help me? I'm the dumbest one in the room. Oh no, 255 00:12:28,679 --> 00:12:31,560 Speaker 2: Courtland's the dumbest one in the room. Help me on this. 256 00:12:31,559 --> 00:12:36,720 Speaker 2: This is important stuff. How do we separate what'd you 257 00:12:36,720 --> 00:12:37,120 Speaker 2: call them? 258 00:12:37,280 --> 00:12:37,920 Speaker 5: Prediction market? 259 00:12:38,000 --> 00:12:42,840 Speaker 2: Prediction markets for Batanan game stop. It's a good question. 260 00:12:43,000 --> 00:12:45,920 Speaker 10: I can't weigh in on what we eventually will do 261 00:12:46,080 --> 00:12:48,679 Speaker 10: with prediction markets, because it's still early in the thought 262 00:12:48,679 --> 00:12:51,760 Speaker 10: process and that's not something I'm involved in on an 263 00:12:51,800 --> 00:12:57,000 Speaker 10: daily basis. But I will say that as a market strategist, 264 00:12:58,000 --> 00:13:03,199 Speaker 10: I am often interested in what the prediction markets are 265 00:13:03,280 --> 00:13:07,800 Speaker 10: saying about certain types of events, What is above the crowds. Yeah, 266 00:13:07,880 --> 00:13:11,080 Speaker 10: because it's a way to gauge sentiment in a unique 267 00:13:11,120 --> 00:13:16,320 Speaker 10: way relative to many of the classic ways to gauge sentiment. 268 00:13:16,440 --> 00:13:20,440 Speaker 10: So I don't dismiss that as something purely on the 269 00:13:20,520 --> 00:13:24,240 Speaker 10: dangerous side of things. I think there as a market observer, 270 00:13:24,360 --> 00:13:25,559 Speaker 10: I think there's some value in it. 271 00:13:25,640 --> 00:13:27,800 Speaker 4: But people say that they can play a role in hedging. 272 00:13:27,880 --> 00:13:29,120 Speaker 4: Do you see that being used? 273 00:13:29,840 --> 00:13:32,599 Speaker 10: You know, I think that requires a level of sophistication 274 00:13:33,320 --> 00:13:35,480 Speaker 10: that I think you probably want to have some help 275 00:13:35,600 --> 00:13:37,319 Speaker 10: trying to do that as an individual investor. 276 00:13:37,440 --> 00:13:39,520 Speaker 2: The first family member to go down in flames on 277 00:13:39,559 --> 00:13:41,800 Speaker 2: this was on the doge in the. 278 00:13:41,840 --> 00:13:44,520 Speaker 5: Couch, the dozeh They called it just the doge. 279 00:13:44,559 --> 00:13:50,080 Speaker 2: They were shocked. This. Let's be optimistic. Are our children 280 00:13:50,520 --> 00:13:53,000 Speaker 2: in this off the laptops on the couch and all 281 00:13:53,040 --> 00:13:56,560 Speaker 2: the jokes? Are they going to learn from losing money? 282 00:13:57,000 --> 00:14:00,160 Speaker 2: After they lose money the third time, maybe all of 283 00:14:00,240 --> 00:14:05,439 Speaker 2: a sudden, what was the ETF you called earlier VU 284 00:14:06,120 --> 00:14:07,800 Speaker 2: all basic cause well. 285 00:14:07,920 --> 00:14:09,080 Speaker 5: They're already losing. 286 00:14:09,200 --> 00:14:12,400 Speaker 10: It's about a ninety five percent loss rate and a 287 00:14:12,440 --> 00:14:16,199 Speaker 10: five percent win rate across the betting markets, particularly in 288 00:14:16,559 --> 00:14:21,200 Speaker 10: sports betting. And the reason is that when you are betting, 289 00:14:21,440 --> 00:14:26,400 Speaker 10: even if it's something that reads investment, like you're a 290 00:14:26,480 --> 00:14:29,280 Speaker 10: you're just a spectator. You're not a participant. You're not 291 00:14:29,320 --> 00:14:30,640 Speaker 10: a participant wealth creation. 292 00:14:30,800 --> 00:14:31,120 Speaker 5: You're not. 293 00:14:31,520 --> 00:14:34,560 Speaker 10: The odds are automatically against you. You step back, You're 294 00:14:34,640 --> 00:14:37,200 Speaker 10: just you're observing. You hope that you're going to have 295 00:14:37,240 --> 00:14:40,760 Speaker 10: a windfall. More most of the time you lose the 296 00:14:40,920 --> 00:14:44,080 Speaker 10: entire bet. That's unfortunate that it may be the pain 297 00:14:44,160 --> 00:14:48,240 Speaker 10: associated with those losses cumulating that finally says maybe this 298 00:14:48,360 --> 00:14:50,320 Speaker 10: isn't the way I should approach investing. 299 00:14:50,400 --> 00:14:53,480 Speaker 2: A lifetime ago, I knew a couple wandering down the 300 00:14:53,520 --> 00:14:56,160 Speaker 2: street and they were retiring because they made it big, 301 00:14:56,200 --> 00:14:58,400 Speaker 2: and I think it was oracle. Do we have a 302 00:14:58,400 --> 00:15:01,520 Speaker 2: whole cadre of people out there planning retirements right now 303 00:15:01,880 --> 00:15:05,560 Speaker 2: because AI's gone up chart and that's gone evaporated. 304 00:15:05,800 --> 00:15:09,080 Speaker 10: But what I fear is that our minds and our 305 00:15:09,160 --> 00:15:11,400 Speaker 10: motions maybe play tricks on us. I had a very 306 00:15:11,400 --> 00:15:15,520 Speaker 10: interesting conversation about a year ago with a former Nvidia 307 00:15:15,560 --> 00:15:18,760 Speaker 10: employee that had a ton of that stock, and I 308 00:15:18,920 --> 00:15:21,520 Speaker 10: was in earshot to a conversation he was having with 309 00:15:21,560 --> 00:15:25,000 Speaker 10: his shop financial consultant, and he was ruining the fact 310 00:15:25,000 --> 00:15:27,640 Speaker 10: that he agreed to trim five percent of the position, 311 00:15:27,800 --> 00:15:30,680 Speaker 10: even though the financial consultant had said trim back ten 312 00:15:30,760 --> 00:15:35,120 Speaker 10: as he's planning for retirement and lessening that concentrated position. 313 00:15:35,680 --> 00:15:37,880 Speaker 10: And he said, and so I slipped the difference. I 314 00:15:37,920 --> 00:15:42,560 Speaker 10: sold five percent of it, and this stock went up 315 00:15:43,240 --> 00:15:43,880 Speaker 10: twenty percent. 316 00:15:43,920 --> 00:15:45,840 Speaker 4: And I that we have Lezanne Sanders here with us. 317 00:15:45,840 --> 00:15:48,120 Speaker 4: She has chief investment strategist at Charles Schwab. And listen, 318 00:15:48,400 --> 00:15:50,360 Speaker 4: a lot of people working in finance are so busy 319 00:15:50,400 --> 00:15:52,600 Speaker 4: talking to clients like you are that they don't spend 320 00:15:52,680 --> 00:15:55,120 Speaker 4: very much time on their own finances. What would surprise 321 00:15:55,200 --> 00:15:57,640 Speaker 4: other people about your own personal investment strategy. 322 00:15:58,560 --> 00:16:02,160 Speaker 10: Well, the philosophy that I think about that's most important, 323 00:16:02,200 --> 00:16:04,080 Speaker 10: that I think is lacking in some of the conversations 324 00:16:04,080 --> 00:16:06,200 Speaker 10: having today. And I've always applied it to myself, and 325 00:16:06,280 --> 00:16:09,240 Speaker 10: it ties to perhaps my love of jigsaw puzzles. And 326 00:16:09,280 --> 00:16:11,040 Speaker 10: I know you might think, where is she going with this? 327 00:16:11,640 --> 00:16:14,880 Speaker 10: But I often ask audiences what's the most important part 328 00:16:14,920 --> 00:16:16,680 Speaker 10: of a jigsaw puzzle and the cord raise your hand. 329 00:16:16,720 --> 00:16:18,760 Speaker 10: They'll say the corners, you know, the last piece, And 330 00:16:18,760 --> 00:16:21,480 Speaker 10: I always say it's the picture on the box, because 331 00:16:21,520 --> 00:16:24,600 Speaker 10: try doing a fifteen hundred piece jigsaw puzzle without having 332 00:16:24,720 --> 00:16:27,640 Speaker 10: any sense. So that's the plan, So have a plan. 333 00:16:28,160 --> 00:16:31,240 Speaker 10: I don't trade. It's not that I'm not allowed to. 334 00:16:31,520 --> 00:16:33,840 Speaker 10: I just don't have the time to focus on it. 335 00:16:34,760 --> 00:16:39,360 Speaker 10: So there's people managing my money. I'm very involved, but 336 00:16:40,320 --> 00:16:45,280 Speaker 10: I take a long term approach. I only make adjustments 337 00:16:45,360 --> 00:16:49,840 Speaker 10: based on sort of lifestyle changes, not I don't try 338 00:16:49,840 --> 00:16:51,320 Speaker 10: to time the market in the short term. 339 00:16:51,320 --> 00:16:52,720 Speaker 5: Also, are you checking your balance? 340 00:16:53,560 --> 00:16:56,520 Speaker 10: You know it varies depending on the Yeah, I mean, 341 00:16:56,520 --> 00:16:59,240 Speaker 10: if I go on to pay bills, then I'll see 342 00:16:59,280 --> 00:17:03,120 Speaker 10: what it's flashing right up there on my Schwab statement. 343 00:17:03,600 --> 00:17:06,439 Speaker 10: But I you know, I don't have a quick trigger. 344 00:17:07,800 --> 00:17:10,360 Speaker 10: I think that, and I think too many investors, by 345 00:17:10,400 --> 00:17:14,280 Speaker 10: the way, individual investors solely tie their risk tolerance to 346 00:17:14,359 --> 00:17:15,040 Speaker 10: their age. 347 00:17:15,320 --> 00:17:17,320 Speaker 5: Yes, and that's that's a problem. 348 00:17:17,400 --> 00:17:20,000 Speaker 10: You can be young but if you're going to panic 349 00:17:20,040 --> 00:17:24,119 Speaker 10: at the first ten percent drop, you're not a risk tolerant. 350 00:17:23,720 --> 00:17:25,760 Speaker 4: And very well said Lizanne. Thank you so much for 351 00:17:25,800 --> 00:17:28,960 Speaker 4: being on our program today. Lizanne Saunders, chief investment strategist 352 00:17:29,000 --> 00:17:32,320 Speaker 4: at Charles Schwab, coming up a conversation with JP Morgan 353 00:17:32,359 --> 00:17:36,560 Speaker 4: Asset Managements, Gabriella Santos, this is Bloomberg Money. 354 00:17:37,720 --> 00:17:39,520 Speaker 5: Tom, your psyched for this, right, Yes. 355 00:17:42,920 --> 00:17:46,399 Speaker 4: AI disruption concerns are rolling through every single industry, and 356 00:17:46,480 --> 00:17:48,880 Speaker 4: now the technology is threatening one of the cushiest white 357 00:17:48,920 --> 00:17:51,240 Speaker 4: collar jobs, that is providing. 358 00:17:50,880 --> 00:17:52,200 Speaker 5: Wealth management advice. 359 00:17:52,600 --> 00:17:55,840 Speaker 4: UR Susanne Wolly, writing in Today's Big Take quote, when 360 00:17:55,840 --> 00:18:00,000 Speaker 4: pressed on what exactly they offer that AI doesn't, advisors 361 00:18:00,080 --> 00:18:02,359 Speaker 4: say that they can help out during life's most extreme moments, 362 00:18:02,440 --> 00:18:04,959 Speaker 4: things like when a spouse dies or during crises when 363 00:18:05,000 --> 00:18:09,400 Speaker 4: people need to access resources quickly. Bloomber Personal Finance Reporters 364 00:18:09,480 --> 00:18:12,200 Speaker 4: is and really joins us now to discuss. I mean, sure, 365 00:18:12,359 --> 00:18:14,400 Speaker 4: that's the kind of add on service they can offer. 366 00:18:14,480 --> 00:18:18,280 Speaker 4: But the big question here is whether human financial advisors 367 00:18:18,280 --> 00:18:20,679 Speaker 4: could really go extinct, or will AI, you know, just 368 00:18:20,760 --> 00:18:22,680 Speaker 4: kind of help them assist them in their jobs. 369 00:18:23,000 --> 00:18:26,480 Speaker 11: I think there's this existential crisis that's unfolding as AI 370 00:18:26,520 --> 00:18:29,760 Speaker 11: works deeper and deeper into the industry and into their day. 371 00:18:29,960 --> 00:18:32,640 Speaker 11: I mean, right now, I think advisors see how much 372 00:18:32,640 --> 00:18:34,520 Speaker 11: AI can help them and free up time. 373 00:18:34,880 --> 00:18:36,119 Speaker 5: So for now they're embracing it. 374 00:18:36,160 --> 00:18:39,639 Speaker 11: But we'll have to see, you know, if it becomes 375 00:18:39,640 --> 00:18:40,280 Speaker 11: more of a threat. 376 00:18:40,600 --> 00:18:42,960 Speaker 4: And I think about it in terms of who we're discussing. 377 00:18:43,000 --> 00:18:45,280 Speaker 4: Right for the wealthy, and we could talk about mini 378 00:18:45,280 --> 00:18:49,600 Speaker 4: millionaires or high net worth individuals. They want high touch services, 379 00:18:49,680 --> 00:18:52,680 Speaker 4: high touch products. That means having human beings part of 380 00:18:52,720 --> 00:18:54,240 Speaker 4: the mix, and they're willing to pay up for it. 381 00:18:54,280 --> 00:18:56,359 Speaker 4: But you also wonder if that's generational. 382 00:18:56,840 --> 00:19:00,320 Speaker 11: Yeah, I think that's a great question, because older vestor 383 00:19:00,400 --> 00:19:01,840 Speaker 11: is a very comfortable with the idea of having a 384 00:19:01,920 --> 00:19:04,119 Speaker 11: human advisor, willing to pay that money, like you said. 385 00:19:04,440 --> 00:19:07,680 Speaker 11: But then again, I sort of think while younger investors 386 00:19:07,680 --> 00:19:11,159 Speaker 11: sort of are much more comfortable with AI. If you 387 00:19:11,160 --> 00:19:13,600 Speaker 11: have a SpaceX stake and all of a sudden, ten 388 00:19:13,640 --> 00:19:15,760 Speaker 11: million falls into your lap, you're not going to go 389 00:19:15,840 --> 00:19:17,840 Speaker 11: running to AI. You're going to run to a human advisor. 390 00:19:17,920 --> 00:19:19,240 Speaker 5: They're going to run to a human advisor. 391 00:19:19,280 --> 00:19:21,440 Speaker 4: So I guess the question therefore, is for those who 392 00:19:21,480 --> 00:19:24,320 Speaker 4: are relying on AI bots to help manage their money 393 00:19:24,400 --> 00:19:27,280 Speaker 4: or help them figure out allocations, is that something they 394 00:19:27,280 --> 00:19:27,879 Speaker 4: can rely on. 395 00:19:28,000 --> 00:19:29,040 Speaker 5: Is it working for them? 396 00:19:29,600 --> 00:19:33,320 Speaker 11: I say no, I think that they are still hallucinations. 397 00:19:33,320 --> 00:19:35,800 Speaker 11: If it's something really simple, maybe AI can help you. 398 00:19:36,160 --> 00:19:38,760 Speaker 11: But for tax issues and things like that. You know 399 00:19:38,760 --> 00:19:42,480 Speaker 11: there's a phrase like trust, but verify with AI. Right 400 00:19:42,520 --> 00:19:45,719 Speaker 11: now I would say like, don't really trust and definitely verify. 401 00:19:45,800 --> 00:19:47,520 Speaker 2: Do you think this is all going to work? And 402 00:19:47,600 --> 00:19:50,440 Speaker 2: your wonderful article with the great images of Miami Beach, 403 00:19:50,840 --> 00:19:52,280 Speaker 2: do you think this is going to work in a 404 00:19:52,280 --> 00:19:55,360 Speaker 2: bear market? Nobody remembers what it's like when you're down 405 00:19:55,440 --> 00:19:57,879 Speaker 2: thirty two percent. You're not going to blame AI, are you. 406 00:19:58,280 --> 00:20:00,720 Speaker 11: That's a really good point because when stuff that happens, 407 00:20:01,160 --> 00:20:05,000 Speaker 11: your advisor can be a huge, huge aid in stopping 408 00:20:05,040 --> 00:20:07,359 Speaker 11: you from doing something stupid, you know, selling it looking 409 00:20:07,400 --> 00:20:07,600 Speaker 11: at me. 410 00:20:09,520 --> 00:20:11,080 Speaker 5: So, Zanne Wolly, thank you so much. 411 00:20:11,080 --> 00:20:13,600 Speaker 4: As a reminder that these wealth advisors are basically part 412 00:20:13,600 --> 00:20:16,400 Speaker 4: time therapists, if not full time therapists, we'll have. 413 00:20:16,440 --> 00:20:19,680 Speaker 2: To see first loss westing House options. I knew exactly 414 00:20:19,720 --> 00:20:22,320 Speaker 2: what I was going to do down in flames. She 415 00:20:22,440 --> 00:20:25,479 Speaker 2: has never been down in flames. Gabriello Santos is a 416 00:20:25,560 --> 00:20:29,400 Speaker 2: force at JP Morgan driving their US strategy. She's more 417 00:20:29,440 --> 00:20:32,080 Speaker 2: of a force out on LinkedIn. One reason to join 418 00:20:32,160 --> 00:20:35,960 Speaker 2: LinkedIn is simply her wonderful, wonderful work. Thanks for joining 419 00:20:36,040 --> 00:20:36,480 Speaker 2: us today. 420 00:20:36,560 --> 00:20:36,879 Speaker 5: Thank you. 421 00:20:37,000 --> 00:20:38,400 Speaker 2: What are you going to write for Monday? I want 422 00:20:38,400 --> 00:20:40,439 Speaker 2: to know right away, what's what's the Monday theme for 423 00:20:40,480 --> 00:20:41,360 Speaker 2: guyab Santos. 424 00:20:41,760 --> 00:20:45,679 Speaker 12: Well, I'm really interested in this idea about artificial intelligence 425 00:20:45,800 --> 00:20:48,359 Speaker 12: and what it can and can't replace. And just listening 426 00:20:48,720 --> 00:20:51,720 Speaker 12: listen to Susanne listening to the conversation about wealth management. 427 00:20:51,760 --> 00:20:56,120 Speaker 12: I think investing is fundamentally a human activity. 428 00:20:56,400 --> 00:20:58,439 Speaker 5: And on a day like today where all of a 429 00:20:58,480 --> 00:20:58,960 Speaker 5: sudden and. 430 00:20:58,920 --> 00:21:01,840 Speaker 12: You have stocks down one and a half three percent, 431 00:21:02,520 --> 00:21:05,320 Speaker 12: all of a sudden, an allocation that felt good when 432 00:21:05,320 --> 00:21:08,080 Speaker 12: things were going well, all of a sudden doesn't. And 433 00:21:08,119 --> 00:21:11,679 Speaker 12: this is crucial when it comes to investing, because the 434 00:21:11,720 --> 00:21:15,560 Speaker 12: ability to actually stay invested is what actually determines success 435 00:21:15,640 --> 00:21:16,160 Speaker 12: or failure. 436 00:21:16,280 --> 00:21:18,439 Speaker 2: Well, that's your hallmark, stay and invested. But there's a 437 00:21:18,480 --> 00:21:20,679 Speaker 2: single sentence in this this is a money mustery. With 438 00:21:20,760 --> 00:21:24,000 Speaker 2: gabrielle O Santo's of JP Morgan and the last sentence 439 00:21:24,080 --> 00:21:27,080 Speaker 2: is their money sentence. For a sixty five year old couple, 440 00:21:27,359 --> 00:21:30,040 Speaker 2: there's a fifty percent chance that one of them will 441 00:21:30,040 --> 00:21:32,320 Speaker 2: live to age nine. That you're looking at me or 442 00:21:32,400 --> 00:21:37,800 Speaker 2: beyond thirty five years in retirement. The solution saving and 443 00:21:37,840 --> 00:21:40,880 Speaker 2: investing more. This is Peter orzeg Over at Lazard one 444 00:21:40,920 --> 00:21:44,560 Speaker 2: on one. The biggest problem with ARISUS seventy four is 445 00:21:44,600 --> 00:21:46,480 Speaker 2: we all thought we could have put a little bit 446 00:21:46,520 --> 00:21:48,840 Speaker 2: of money in and we'd be fine, and your front 447 00:21:48,840 --> 00:21:51,040 Speaker 2: and center and is okay, how much do we have 448 00:21:51,080 --> 00:21:51,520 Speaker 2: to put in? 449 00:21:52,240 --> 00:21:55,199 Speaker 12: So I think that the important thing is really to 450 00:21:55,320 --> 00:21:58,800 Speaker 12: plan ahead. So it's not to plan to get to retirement, 451 00:21:59,280 --> 00:22:02,840 Speaker 12: but it's to plan to get to and through retirement. 452 00:22:02,960 --> 00:22:05,840 Speaker 12: And so just the time horizon is very different, I 453 00:22:05,840 --> 00:22:08,040 Speaker 12: think than people normally think about. 454 00:22:08,240 --> 00:22:10,640 Speaker 5: It's having enough wealth. 455 00:22:10,240 --> 00:22:13,280 Speaker 12: And income gains to get you through thirty five years 456 00:22:13,400 --> 00:22:17,800 Speaker 12: plus of a dignified, enjoyable retirement. And I think this 457 00:22:17,880 --> 00:22:21,080 Speaker 12: is where sometimes personal behavior can get in the way, 458 00:22:22,280 --> 00:22:24,679 Speaker 12: because on days when the market is down, it may 459 00:22:24,680 --> 00:22:27,480 Speaker 12: be tempting to say, look, I have this long term plan. 460 00:22:27,600 --> 00:22:29,560 Speaker 12: It all sounded good at the time, but let me 461 00:22:29,600 --> 00:22:32,639 Speaker 12: get out I'll get back in the market actually tends 462 00:22:32,640 --> 00:22:35,520 Speaker 12: to have good days clustered around the worst days, and 463 00:22:35,560 --> 00:22:37,920 Speaker 12: if you just missed the ten best ones over the 464 00:22:38,000 --> 00:22:40,240 Speaker 12: last twenty five years, you could have cut your return 465 00:22:40,280 --> 00:22:43,199 Speaker 12: in half. The other thing that's important to do is 466 00:22:43,240 --> 00:22:47,560 Speaker 12: also to change your allocation over time. So of course, 467 00:22:47,640 --> 00:22:50,480 Speaker 12: as you're younger and if you have a certain risk appetite, 468 00:22:50,520 --> 00:22:53,520 Speaker 12: to take on more risk, But as you get to 469 00:22:53,720 --> 00:22:57,560 Speaker 12: retirement and through retirement, to really think about that glide 470 00:22:57,680 --> 00:23:00,920 Speaker 12: path of the risk your assets coming down and your 471 00:23:00,960 --> 00:23:02,479 Speaker 12: more income focus going up. 472 00:23:02,520 --> 00:23:04,120 Speaker 4: So I'm glad you mention that, because I know Tom 473 00:23:04,160 --> 00:23:06,280 Speaker 4: doesn't want to retire because he's having too much fun. 474 00:23:06,320 --> 00:23:08,480 Speaker 4: And we locked Tom into Bloomberg money for the next 475 00:23:08,480 --> 00:23:11,760 Speaker 4: couple of years. How does he preserve his capital without 476 00:23:11,760 --> 00:23:14,720 Speaker 4: losing it all to inflation? I mean, the traditional safe 477 00:23:14,720 --> 00:23:17,240 Speaker 4: place like treasuries didn't work in twenty twenty two, didn't 478 00:23:17,240 --> 00:23:20,000 Speaker 4: even work in late March. Gold is like a memestock, 479 00:23:20,280 --> 00:23:21,560 Speaker 4: so they're not reliable. 480 00:23:22,040 --> 00:23:23,679 Speaker 12: Yeah, So I think the number one thing is this 481 00:23:23,880 --> 00:23:30,480 Speaker 12: difference between saving and investing, so cash isn't always king. Actually, 482 00:23:30,920 --> 00:23:33,800 Speaker 12: cash rates are now below inflation, but even when they 483 00:23:33,840 --> 00:23:36,920 Speaker 12: were above inflation, it can only do so much for you. 484 00:23:36,960 --> 00:23:40,200 Speaker 12: The real growth piece is going to come from other 485 00:23:40,240 --> 00:23:42,760 Speaker 12: asset classes. If you look at corporate credit, if you 486 00:23:42,800 --> 00:23:45,440 Speaker 12: look at equities, if you look at private markets. 487 00:23:45,880 --> 00:23:47,040 Speaker 5: Then when it comes. 488 00:23:46,800 --> 00:23:50,920 Speaker 12: To the actual keeping up with inflation, I think what's 489 00:23:50,920 --> 00:23:53,560 Speaker 12: important to think about is actually a lot of asset 490 00:23:53,560 --> 00:23:56,440 Speaker 12: classes like equities, are nominal asset classes. 491 00:23:56,520 --> 00:23:56,680 Speaker 3: Right. 492 00:23:56,720 --> 00:23:59,600 Speaker 12: It's about the volume and the price, so inherently there's 493 00:23:59,600 --> 00:24:03,400 Speaker 12: a certain inflation protection there. But if you think directly 494 00:24:03,440 --> 00:24:08,360 Speaker 12: about diversifying inflation shocks, that's where bonds can only do 495 00:24:08,440 --> 00:24:11,479 Speaker 12: so much for you. They can hedge against recession shocks 496 00:24:11,560 --> 00:24:13,760 Speaker 12: or demand side shocks, but they're not very good at 497 00:24:13,760 --> 00:24:17,520 Speaker 12: inflation shocks or supply side. So that's where we've really 498 00:24:17,560 --> 00:24:21,360 Speaker 12: thought about diversifying the diversifiers. There's no one magic. 499 00:24:21,080 --> 00:24:22,200 Speaker 5: Solution like that. 500 00:24:22,200 --> 00:24:24,240 Speaker 12: You can look at a variety of things, whether it's 501 00:24:24,280 --> 00:24:27,960 Speaker 12: options to directly hedge the downside. Private markets have a 502 00:24:27,960 --> 00:24:30,960 Speaker 12: lot to offer, like real estate and for shocked or transportation, 503 00:24:31,359 --> 00:24:34,000 Speaker 12: so there's a lot to do. But it's very different 504 00:24:34,200 --> 00:24:35,840 Speaker 12: than the post GFC period. 505 00:24:35,880 --> 00:24:39,679 Speaker 4: Diversifying the diversifier so they're saving and getting through retirement 506 00:24:40,160 --> 00:24:42,080 Speaker 4: and there's also saving for kids college and you put 507 00:24:42,080 --> 00:24:44,359 Speaker 4: that in a separate bucket. One year of college, by 508 00:24:44,400 --> 00:24:46,520 Speaker 4: the way, is now six digits. Look, I was reading 509 00:24:46,560 --> 00:24:48,600 Speaker 4: your magazine and they said, when you add in all 510 00:24:48,600 --> 00:24:52,720 Speaker 4: the miscellaneous expenses, at least sixteen schools have already passed 511 00:24:52,720 --> 00:24:55,359 Speaker 4: the one hundred thousand dollar mark, and that includes NYU 512 00:24:55,440 --> 00:24:57,959 Speaker 4: and USC. I know you just posted something about five 513 00:24:58,040 --> 00:25:01,320 Speaker 4: twenty nine plans on May twenty ninth. Do we need 514 00:25:01,520 --> 00:25:03,800 Speaker 4: these plants to do more than what they're currently built 515 00:25:03,840 --> 00:25:04,040 Speaker 4: to do? 516 00:25:04,720 --> 00:25:09,320 Speaker 12: So, it was a fascinating conversation I had around college savings. 517 00:25:09,320 --> 00:25:10,879 Speaker 5: It's very top of mine for me. 518 00:25:10,960 --> 00:25:13,600 Speaker 12: I have a six month old son gradula thank you, 519 00:25:13,840 --> 00:25:17,280 Speaker 12: and the team college savings team was calculating for me 520 00:25:17,320 --> 00:25:20,720 Speaker 12: how much it could cost in eighteen years to spend. 521 00:25:20,560 --> 00:25:23,159 Speaker 5: His seven figures to my alma mater. 522 00:25:23,320 --> 00:25:26,520 Speaker 12: Pen and they estimate it could cost eight hundred thousand dollars. 523 00:25:26,600 --> 00:25:27,960 Speaker 2: Okay, that's the heart of the matter. 524 00:25:28,400 --> 00:25:32,520 Speaker 5: Absolutely no total. I mean at that point we're going 525 00:25:32,600 --> 00:25:33,400 Speaker 5: to rip up the strip. 526 00:25:33,440 --> 00:25:37,000 Speaker 2: Now we're doing an eight hundred thousand savings plan. Where 527 00:25:37,040 --> 00:25:38,840 Speaker 2: do you start, right? 528 00:25:39,000 --> 00:25:42,160 Speaker 12: And so I think separating right, you have your retirement money, 529 00:25:42,200 --> 00:25:45,439 Speaker 12: which was still really important to continue saving. For what 530 00:25:45,480 --> 00:25:47,399 Speaker 12: we see is a lot of families end up actually 531 00:25:47,480 --> 00:25:48,800 Speaker 12: using their retirement money. 532 00:25:48,800 --> 00:25:51,520 Speaker 2: He bar from it because wants to go to some 533 00:25:51,600 --> 00:25:53,080 Speaker 2: fancy seventh grade school. 534 00:25:53,240 --> 00:25:56,360 Speaker 12: That's right, And so I think ultimately you can as 535 00:25:56,359 --> 00:25:59,040 Speaker 12: soon as you're really expecting a child, or even just 536 00:25:59,080 --> 00:26:02,480 Speaker 12: planning ahead, you can already set up a separate tax 537 00:26:02,960 --> 00:26:07,720 Speaker 12: free college savings account which accumulates over time, and that 538 00:26:07,800 --> 00:26:09,720 Speaker 12: makes a huge difference, even if you put a little 539 00:26:09,720 --> 00:26:10,359 Speaker 12: bit over time. 540 00:26:10,400 --> 00:26:13,800 Speaker 2: Can I secuase is there you get real santosis here? 541 00:26:14,359 --> 00:26:18,159 Speaker 2: She's just very good? Are not in Harvey over at 542 00:26:18,200 --> 00:26:22,439 Speaker 2: the CFA are blowing up the growth and value model. 543 00:26:22,720 --> 00:26:25,880 Speaker 2: We were all weaned on your either growthiness or you're 544 00:26:25,960 --> 00:26:29,040 Speaker 2: in value, and they're saying there's only two things left 545 00:26:29,520 --> 00:26:35,080 Speaker 2: growth cheap or growth fancy. Where is value now? The 546 00:26:35,200 --> 00:26:39,160 Speaker 2: traditional low pe multiple value? Is it dead? 547 00:26:40,040 --> 00:26:40,919 Speaker 5: Absolutely not? 548 00:26:41,200 --> 00:26:44,960 Speaker 12: And I think whether you measure it directly by the 549 00:26:45,000 --> 00:26:48,280 Speaker 12: price to earnings ratio or not, I do think valuations 550 00:26:48,400 --> 00:26:52,439 Speaker 12: or expectations are crucial. I mean, if you think about 551 00:26:52,520 --> 00:26:54,359 Speaker 12: a day like today, all of a sudden you have 552 00:26:54,400 --> 00:26:56,879 Speaker 12: a bit of a corruption in the market. Not because 553 00:26:56,920 --> 00:27:02,560 Speaker 12: fundamentally anything has changed. But because expectations were very elevated, 554 00:27:02,600 --> 00:27:06,239 Speaker 12: positioning was also very concentrated. And anything that you have 555 00:27:06,359 --> 00:27:09,840 Speaker 12: that doesn't meet expectations. 556 00:27:09,160 --> 00:27:10,960 Speaker 5: All of us out and becomes an issue. 557 00:27:10,960 --> 00:27:14,920 Speaker 12: So we always think about the actual fundamentals, But what 558 00:27:15,040 --> 00:27:16,480 Speaker 12: is actually implicit in the price. 559 00:27:16,480 --> 00:27:18,560 Speaker 2: We're going to bring up this now, this is too important, 560 00:27:18,600 --> 00:27:21,520 Speaker 2: Gabby off if your wonderful comments earlier in life expectancy, 561 00:27:21,520 --> 00:27:24,560 Speaker 2: but let's just fold it into the Santos eight hundred 562 00:27:24,600 --> 00:27:28,920 Speaker 2: thousand plan. Very ignacious here it is changing life expectancy. 563 00:27:29,200 --> 00:27:31,960 Speaker 2: If you're thirty something like Gabby, the answer is you 564 00:27:32,000 --> 00:27:34,400 Speaker 2: got eighty one more years to figure all this out. 565 00:27:34,680 --> 00:27:36,960 Speaker 2: A fossil like me, I got like ten years to 566 00:27:37,000 --> 00:27:39,879 Speaker 2: figure it out, maybe twelve or that. The heart of 567 00:27:39,920 --> 00:27:43,960 Speaker 2: the matter for JP Morgan Asset Management is ARISUS seventy 568 00:27:43,960 --> 00:27:46,960 Speaker 2: four or nineteen ninety four. It's all changed. We're living 569 00:27:47,040 --> 00:27:51,000 Speaker 2: forever with education costs and retirement. 570 00:27:50,600 --> 00:27:52,720 Speaker 12: And for my son, for example, you should plan on 571 00:27:52,760 --> 00:27:55,200 Speaker 12: living one hundred year life. That was a wonderful book 572 00:27:55,200 --> 00:27:57,800 Speaker 12: I read. And so how do we plan just to 573 00:27:57,840 --> 00:27:59,639 Speaker 12: have these really long lives, but to live them in 574 00:27:59,680 --> 00:28:03,359 Speaker 12: dignitate and that's ultimately to save, but to take that 575 00:28:03,440 --> 00:28:07,359 Speaker 12: extra step to actually invest, and I very much agree 576 00:28:07,359 --> 00:28:10,639 Speaker 12: with what Lazanne was talking about previously that there's also 577 00:28:10,720 --> 00:28:15,200 Speaker 12: a difference between investing and betting, and I think that's 578 00:28:15,240 --> 00:28:19,159 Speaker 12: where we need to remember that because saving for the 579 00:28:19,240 --> 00:28:23,800 Speaker 12: long term really really involves having very diversified acid classes, 580 00:28:23,840 --> 00:28:28,000 Speaker 12: sticking to them and thinking about the abcs, appreciating fundamentals, 581 00:28:28,000 --> 00:28:32,840 Speaker 12: but also balancing with valuations and concentrating on concentration risk. 582 00:28:33,359 --> 00:28:36,480 Speaker 2: You're listening to Bloomberg Money, stay with us with more 583 00:28:36,520 --> 00:28:37,760 Speaker 2: to come after this. 584 00:28:41,360 --> 00:28:44,880 Speaker 4: Welcome back to Bloomberg Money. I'm Scarlett Fou alongside Tom Keen. 585 00:28:44,920 --> 00:28:47,760 Speaker 4: Bloomberg Money is your new destination for personal finance. It's 586 00:28:47,800 --> 00:28:51,440 Speaker 4: a cross platform effort that extends way beyond your television, 587 00:28:51,480 --> 00:28:53,800 Speaker 4: including our new digital hub that we launched this week. 588 00:28:54,000 --> 00:28:56,720 Speaker 4: You can find it all at Bloomberg dot com, slash money, 589 00:28:56,720 --> 00:28:59,320 Speaker 4: and right now, Tom the top story in the Bloomberg 590 00:28:59,360 --> 00:29:00,080 Speaker 4: Money page. 591 00:28:59,880 --> 00:29:00,480 Speaker 5: Is chilling in. 592 00:29:00,520 --> 00:29:02,760 Speaker 4: Money Market funds is a hot retail strategy now, but 593 00:29:02,800 --> 00:29:04,040 Speaker 4: it is almost something. 594 00:29:04,080 --> 00:29:07,040 Speaker 2: I looked at the BTMM screen this week for the 595 00:29:07,080 --> 00:29:10,200 Speaker 2: first time in ages and there's yield there after inflation 596 00:29:10,280 --> 00:29:10,560 Speaker 2: there is. 597 00:29:10,800 --> 00:29:11,360 Speaker 5: That's what I mean. 598 00:29:11,400 --> 00:29:14,160 Speaker 4: After inflation, it feels like there's nothing behind back. 599 00:29:14,000 --> 00:29:16,320 Speaker 2: To zero interest rates not that long ago. It looks 600 00:29:16,360 --> 00:29:18,400 Speaker 2: like a gold mine out there. And you mentioned earlier 601 00:29:18,480 --> 00:29:20,680 Speaker 2: this week eight trillion dollars in money. 602 00:29:20,400 --> 00:29:22,480 Speaker 5: Market fun eight point three. 603 00:29:22,720 --> 00:29:25,360 Speaker 2: Something's changed in America. I was told three or four 604 00:29:25,400 --> 00:29:27,280 Speaker 2: years ago, books we're going to die. Books we're going 605 00:29:27,360 --> 00:29:30,280 Speaker 2: to go away. Get your kindle, out your pad, whatever. 606 00:29:30,680 --> 00:29:34,000 Speaker 2: And if you look out on Twitter, books are also in. 607 00:29:34,520 --> 00:29:37,200 Speaker 2: Some kid they say they're dad books. You got kids 608 00:29:37,240 --> 00:29:41,000 Speaker 2: reading Warren Peace and Anna Karina and all the rest. 609 00:29:40,760 --> 00:29:41,440 Speaker 5: Has a dad book. 610 00:29:41,720 --> 00:29:44,160 Speaker 2: No it's not, but it's like books are in again, 611 00:29:44,200 --> 00:29:46,959 Speaker 2: and we are thrilled to look at the books that 612 00:29:47,040 --> 00:29:49,920 Speaker 2: are out there right now. And it's the money books 613 00:29:49,960 --> 00:29:51,880 Speaker 2: of Summer. Let me show you my book. I picked 614 00:29:51,880 --> 00:29:54,920 Speaker 2: this earlier on. This is a more academic book. It's 615 00:29:54,920 --> 00:29:57,800 Speaker 2: a more doweed book, no math, but it's a giant, 616 00:29:58,080 --> 00:30:01,960 Speaker 2: very icon Green of Berkeley. Money Beyond Borders. And why 617 00:30:02,000 --> 00:30:05,880 Speaker 2: this is important to all of us is every chapter 618 00:30:06,280 --> 00:30:10,160 Speaker 2: the Dutch, the Italians before the Dutch, the English of 619 00:30:10,200 --> 00:30:15,520 Speaker 2: the nineteenth century, and now America, every chapter scarlet ends 620 00:30:15,960 --> 00:30:20,280 Speaker 2: in a kind of financialization, a fancy people in suits 621 00:30:20,280 --> 00:30:23,520 Speaker 2: and bow ties trying to make an arbitrage, trying to 622 00:30:23,520 --> 00:30:23,840 Speaker 2: make it. 623 00:30:23,880 --> 00:30:25,760 Speaker 4: I love the fact that it goes through history, because 624 00:30:25,800 --> 00:30:27,600 Speaker 4: that's what we all tend to forget as well. So 625 00:30:27,680 --> 00:30:29,680 Speaker 4: my book that I just finished reading is Lloyd blank 626 00:30:29,680 --> 00:30:32,720 Speaker 4: Find's memoir street Wise, Getting to and through Goldman Sacks. 627 00:30:33,000 --> 00:30:34,680 Speaker 4: I liked the whole thing about how he felt like 628 00:30:34,680 --> 00:30:36,880 Speaker 4: an outsider because he came from Jay Errens. But what 629 00:30:36,960 --> 00:30:39,920 Speaker 4: I thought was really interesting was he advises young people 630 00:30:39,960 --> 00:30:43,560 Speaker 4: interested in finance to study history in college because that 631 00:30:43,640 --> 00:30:47,960 Speaker 4: way you understand cycles, you understand context, you understand human behavior. 632 00:30:48,040 --> 00:30:50,360 Speaker 2: And what's interesting about the CEO books is you know 633 00:30:50,480 --> 00:30:53,840 Speaker 2: right away are they genuine or not? And blank Finds 634 00:30:53,880 --> 00:30:55,560 Speaker 2: kick right out, right out. 635 00:30:55,400 --> 00:30:57,200 Speaker 4: The sense of humors all over the place. I mean, 636 00:30:57,280 --> 00:30:58,600 Speaker 4: especially in the captions of the pictures. 637 00:30:58,640 --> 00:30:59,120 Speaker 5: They were great. 638 00:30:59,400 --> 00:31:01,400 Speaker 2: Can you imagine in the book that Jamie Diamond's going 639 00:31:01,440 --> 00:31:02,280 Speaker 2: to write someday. 640 00:31:03,320 --> 00:31:04,480 Speaker 5: I'm sure there's a bitting more. 641 00:31:04,440 --> 00:31:07,280 Speaker 2: For Exaniel report is a book and it'll. 642 00:31:06,800 --> 00:31:08,680 Speaker 5: Go all right. 643 00:31:08,680 --> 00:31:08,840 Speaker 2: Well. 644 00:31:08,840 --> 00:31:11,440 Speaker 4: We actually caught up with Black Rocks Jeffrey Rosenberg earlier 645 00:31:11,440 --> 00:31:14,000 Speaker 4: this week at a special Bloomberg Money event held right 646 00:31:14,040 --> 00:31:16,720 Speaker 4: here in New York, and we talked with him about books, 647 00:31:16,760 --> 00:31:19,000 Speaker 4: and here's what he said about what he's reading right now. 648 00:31:19,880 --> 00:31:21,720 Speaker 13: I happen to be reading an older book right now, 649 00:31:21,760 --> 00:31:24,800 Speaker 13: Scott Alloway's The four. But the thing, which is a 650 00:31:24,840 --> 00:31:27,400 Speaker 13: great book about big tech read they. 651 00:31:27,400 --> 00:31:29,760 Speaker 2: Read it right now is brilliant. It's I'm going to 652 00:31:29,840 --> 00:31:31,480 Speaker 2: do that. So it was ahead of its time. It's 653 00:31:31,560 --> 00:31:32,400 Speaker 2: it's it's great. 654 00:31:32,480 --> 00:31:35,160 Speaker 13: But I would say, you know, as a bond investor, 655 00:31:35,360 --> 00:31:38,320 Speaker 13: like I do I do bonds, I do macro, I 656 00:31:38,760 --> 00:31:41,840 Speaker 13: don't do tech. There's there's there's more tech coming into 657 00:31:41,840 --> 00:31:45,240 Speaker 13: the fixed income space. Now there's issuing, but historically it's 658 00:31:45,240 --> 00:31:47,160 Speaker 13: not my kind of m So you look at like 659 00:31:47,240 --> 00:31:49,400 Speaker 13: where are the weaknesses, where the blind spots, and so 660 00:31:49,440 --> 00:31:51,640 Speaker 13: technology has been one of that, and at the same 661 00:31:51,680 --> 00:31:55,800 Speaker 13: time recognize that in your personal finance technology is such 662 00:31:56,000 --> 00:31:58,360 Speaker 13: a driving force. Well, we're talking about, you know, forty 663 00:31:58,400 --> 00:32:00,680 Speaker 13: five percent of the equity market top ten companies, it's 664 00:32:00,720 --> 00:32:04,560 Speaker 13: all technology today. So how did I feel that gap in? 665 00:32:04,880 --> 00:32:07,320 Speaker 13: I got three book recommendations. It started with the innovators 666 00:32:07,800 --> 00:32:10,800 Speaker 13: Walter Isaacson. It gets you from like you know, history 667 00:32:10,960 --> 00:32:15,760 Speaker 13: to the present day, fabulous foundational book for understanding technology. 668 00:32:15,840 --> 00:32:18,880 Speaker 13: Second Machine Age, like that leap forward all of a 669 00:32:18,920 --> 00:32:26,360 Speaker 13: sudden when the translation devices went from crap to amazing, 670 00:32:26,480 --> 00:32:29,560 Speaker 13: Like what happened? And that's the Second Machine Age. And 671 00:32:29,560 --> 00:32:31,760 Speaker 13: then the third book is is Chip War. I mean, 672 00:32:32,120 --> 00:32:36,000 Speaker 13: just the focus on Nvidia and the geopolitics around it 673 00:32:36,040 --> 00:32:38,480 Speaker 13: and how did we get to this place where you 674 00:32:38,520 --> 00:32:42,680 Speaker 13: know FABS and ASML, which is an incredible story, incredible 675 00:32:42,680 --> 00:32:47,400 Speaker 13: story of human innovation. The most complicated machine ever created 676 00:32:48,120 --> 00:32:50,960 Speaker 13: is an incredible story. And to kind of understand that 677 00:32:51,040 --> 00:32:55,000 Speaker 13: as the leaping off point to our current AI frenzy. 678 00:32:55,280 --> 00:32:58,400 Speaker 13: Those three books, but definitely end with Chip War's. 679 00:33:00,080 --> 00:33:02,120 Speaker 4: That was jeff Rosenberg talking to us earlier. And the 680 00:33:02,160 --> 00:33:04,800 Speaker 4: common thread through all the books we just talked about history. 681 00:33:04,920 --> 00:33:07,320 Speaker 2: Chris Miller writing for the Ft this week, his book 682 00:33:07,400 --> 00:33:09,800 Speaker 2: Chip Wars. That's the one book I throw out the kids, 683 00:33:09,880 --> 00:33:10,800 Speaker 2: shut up and read it. 684 00:33:10,960 --> 00:33:13,080 Speaker 5: And that's what That's what Jeffrey Rosenberg's reading as well. 685 00:33:13,200 --> 00:33:16,959 Speaker 2: Calcular book to explain where all this modern semit conductor 686 00:33:17,040 --> 00:33:17,680 Speaker 2: stuff came from. 687 00:33:17,800 --> 00:33:20,080 Speaker 4: Yeah, absolutely, and it's a it's a big reason why 688 00:33:20,120 --> 00:33:22,040 Speaker 4: we have to tread very carefully with places like Taiwan 689 00:33:22,080 --> 00:33:23,520 Speaker 4: as well, given that it's the home of all the 690 00:33:23,520 --> 00:33:29,640 Speaker 4: semi conductory Precisely, it is Friday, with a little over 691 00:33:29,680 --> 00:33:32,240 Speaker 4: three hours until the closing bell, and Bloomberg This Weekend's 692 00:33:32,280 --> 00:33:34,520 Speaker 4: Lisa Mateo joins us down with a look at upcoming 693 00:33:34,560 --> 00:33:36,400 Speaker 4: events impacting your money. 694 00:33:36,400 --> 00:33:36,760 Speaker 5: What do you have? 695 00:33:36,880 --> 00:33:39,520 Speaker 14: Yeah, so we have inflation data for one, SpaceX ipo 696 00:33:39,640 --> 00:33:41,520 Speaker 14: for two. So let's start with the inflation data first. 697 00:33:41,560 --> 00:33:41,920 Speaker 5: So we have. 698 00:33:41,920 --> 00:33:45,120 Speaker 14: CPI PPI all next week. We have CPI that comes 699 00:33:45,160 --> 00:33:47,280 Speaker 14: out on Wednesday, so say two for that. If we 700 00:33:47,320 --> 00:33:49,440 Speaker 14: look at the numbers, Okay, so year over year, the 701 00:33:49,480 --> 00:33:52,880 Speaker 14: prior was three point eight percent, the expectation is four points. 702 00:33:52,960 --> 00:33:53,520 Speaker 2: That's a person. 703 00:33:53,680 --> 00:33:54,640 Speaker 14: So it's a big number. 704 00:33:54,720 --> 00:33:58,680 Speaker 5: It's a big increase. Sure, handle makes me uncomfortable. 705 00:33:58,480 --> 00:34:00,640 Speaker 2: Right, I mean I look at this, Lisa, and all 706 00:34:00,640 --> 00:34:03,320 Speaker 2: I could do is the look ahead. Do you have 707 00:34:03,400 --> 00:34:06,040 Speaker 2: tickets Monday for the Knicks? That's just all I want. 708 00:34:05,880 --> 00:34:07,720 Speaker 5: To You're the one thousand dollars. 709 00:34:08,360 --> 00:34:11,120 Speaker 2: You're the one person I know that actually could pull 710 00:34:11,160 --> 00:34:12,799 Speaker 2: off twenty rows back. 711 00:34:13,640 --> 00:34:16,160 Speaker 14: I wish, I wish, And we're going to get to 712 00:34:16,200 --> 00:34:18,000 Speaker 14: those tickets because that's a big thing in the world. 713 00:34:18,040 --> 00:34:19,840 Speaker 5: Cup tickets too. On top of that, it's going to 714 00:34:19,840 --> 00:34:20,399 Speaker 5: be a big thing. 715 00:34:21,000 --> 00:34:23,040 Speaker 14: So we have the CPI right, but then PPI comes 716 00:34:23,080 --> 00:34:25,440 Speaker 14: out on Thursday, so we have that to their numbers. 717 00:34:25,480 --> 00:34:27,720 Speaker 14: If you look year over year, the prior was six percent, 718 00:34:27,760 --> 00:34:31,520 Speaker 14: the forecast is for six point four percent, So another increase. 719 00:34:31,160 --> 00:34:32,719 Speaker 5: There as well. That's a leading indicator. 720 00:34:32,880 --> 00:34:34,520 Speaker 14: Yeah, a leading indicator and a lot of things just 721 00:34:34,560 --> 00:34:36,200 Speaker 14: to keep an eye and we've seen the price of 722 00:34:36,480 --> 00:34:39,000 Speaker 14: gas increase. They're also looking for the price of airfares 723 00:34:39,040 --> 00:34:41,520 Speaker 14: how much that will increase as well? And then looking ahead, 724 00:34:41,520 --> 00:34:44,400 Speaker 14: Bloomberg Economics is talking about the memory ship shortage. 725 00:34:44,440 --> 00:34:45,480 Speaker 5: How that's going to play around. 726 00:34:45,680 --> 00:34:47,640 Speaker 2: It was very big on that. Yeah, we brought it up. 727 00:34:47,640 --> 00:34:48,480 Speaker 2: It stopped me cold. 728 00:34:48,600 --> 00:34:52,160 Speaker 5: Yeah, because consumer like, right, don't you have to buy 729 00:34:52,200 --> 00:34:52,440 Speaker 5: a lot? 730 00:34:52,520 --> 00:34:55,160 Speaker 14: I have to buy a laptop for an ongoing incoming 731 00:34:55,200 --> 00:34:57,279 Speaker 14: college kid now, so the laptop, if you have to 732 00:34:57,280 --> 00:34:58,879 Speaker 14: buy cameras or anything like that. 733 00:34:58,920 --> 00:34:59,560 Speaker 5: You have to keep an. 734 00:34:59,520 --> 00:35:03,240 Speaker 2: Eye the look ahead. As we mentioned with Nikki Waller earlier, 735 00:35:03,360 --> 00:35:06,080 Speaker 2: driving all of our money vertical, Lisa, how are you 736 00:35:06,120 --> 00:35:08,520 Speaker 2: and Bloomberg this weekend approaching SpaceX? 737 00:35:08,600 --> 00:35:11,160 Speaker 14: This weekend SpaceX A lot ed Ludlow is going to 738 00:35:11,200 --> 00:35:11,880 Speaker 14: be on, so it's. 739 00:35:11,760 --> 00:35:13,720 Speaker 5: Going to be working on the weekend. 740 00:35:14,640 --> 00:35:18,319 Speaker 4: Ed Lovel loves us really Ed Love makes exceptions for them. 741 00:35:18,480 --> 00:35:19,480 Speaker 2: He makes thats just. 742 00:35:19,800 --> 00:35:22,120 Speaker 14: But just to hear the talk about you know how 743 00:35:22,160 --> 00:35:24,360 Speaker 14: this is record breaking. You know the numbers behind it. 744 00:35:24,440 --> 00:35:26,760 Speaker 14: Seventy five billion dollars that's what they want to invest. 745 00:35:27,280 --> 00:35:29,400 Speaker 14: Five hundred and fifty five million shares, one hundred and 746 00:35:29,440 --> 00:35:32,000 Speaker 14: thirty five apiece, So that's going for one point eight 747 00:35:32,040 --> 00:35:35,360 Speaker 14: trillion dollars market value. So that the question is is 748 00:35:35,360 --> 00:35:37,520 Speaker 14: it sustainable? And that's the question kind of that you 749 00:35:37,560 --> 00:35:38,520 Speaker 14: have to kind of pose right. 750 00:35:38,520 --> 00:35:40,319 Speaker 4: You might get the pop, but what about in a 751 00:35:40,320 --> 00:35:41,400 Speaker 4: week or two after that? 752 00:35:41,600 --> 00:35:42,000 Speaker 5: Correct? 753 00:35:42,040 --> 00:35:43,840 Speaker 2: The one thing that's not being talked about, to be 754 00:35:43,920 --> 00:35:45,879 Speaker 2: quick about it as the show ends, as we say 755 00:35:45,880 --> 00:35:49,759 Speaker 2: the look ahead. I don't hear any pros on retirement 756 00:35:49,840 --> 00:35:52,680 Speaker 2: and wealth management talking about the look ahead in the 757 00:35:52,800 --> 00:35:55,959 Speaker 2: Q four or twenty seven. 758 00:35:56,120 --> 00:35:56,919 Speaker 5: Don't know what's going to happen. 759 00:35:56,920 --> 00:35:59,319 Speaker 2: But in the old days, the pros looked out two 760 00:35:59,400 --> 00:36:00,920 Speaker 2: years and three years routinely. 761 00:36:01,239 --> 00:36:02,680 Speaker 5: That's just ripping out the constant. 762 00:36:02,719 --> 00:36:06,080 Speaker 2: It's just gone. The look ahead is gone. Looking up. 763 00:36:06,200 --> 00:36:08,520 Speaker 4: I'm just looking ahead to tonight when you've got the 764 00:36:08,600 --> 00:36:10,759 Speaker 4: next game, and Monday when we bring it back to 765 00:36:10,800 --> 00:36:12,000 Speaker 4: New York for a game three. 766 00:36:12,080 --> 00:36:14,640 Speaker 14: It's exciting, it's fun, and it reports the President Trump 767 00:36:15,040 --> 00:36:16,200 Speaker 14: there like it's crazy. 768 00:36:16,480 --> 00:36:20,120 Speaker 2: Gabriella Santos shot at JP Morgan's lighting of their building 769 00:36:20,520 --> 00:36:24,160 Speaker 2: is spectacular. Color the orange in the blue, next color. 770 00:36:24,480 --> 00:36:25,200 Speaker 5: Love it, love it. 771 00:36:25,320 --> 00:36:27,359 Speaker 14: And will the season ticket holders who they do can 772 00:36:27,480 --> 00:36:28,400 Speaker 14: get them a face value? 773 00:36:28,480 --> 00:36:29,600 Speaker 5: Are they going to hold them? Are they going to 774 00:36:29,640 --> 00:36:30,560 Speaker 5: sell them? What are they going to do? 775 00:36:30,640 --> 00:36:32,400 Speaker 14: You could sell them for one hundred thousand dollars. 776 00:36:32,520 --> 00:36:34,799 Speaker 5: I don't know. It's a good arm. I have to 777 00:36:34,800 --> 00:36:35,680 Speaker 5: say it's a good arm. 778 00:36:36,160 --> 00:36:37,880 Speaker 14: And then we have the World Cup, right, so the 779 00:36:37,920 --> 00:36:41,320 Speaker 14: World Cup kicks off. First game in the US is Friday, 780 00:36:41,320 --> 00:36:42,240 Speaker 14: but Thursday. 781 00:36:41,920 --> 00:36:42,880 Speaker 5: Kicks off in Mexico. 782 00:36:43,160 --> 00:36:45,760 Speaker 14: But those tickets too, are going for a different price. 783 00:36:45,840 --> 00:36:48,680 Speaker 14: You know, it's supposed to be made affordable, but if 784 00:36:48,680 --> 00:36:51,080 Speaker 14: you look at the category three prices, not so much. 785 00:36:51,200 --> 00:36:53,040 Speaker 4: All right, Lisa, thank you so much for bringing that 786 00:36:53,080 --> 00:36:56,000 Speaker 4: to us. Lisa Matteo of Bloomberg this weekend, and make 787 00:36:56,000 --> 00:36:59,200 Speaker 4: sure to watch Bloomberg this weekend every Saturday and Sunday morning, 788 00:36:59,280 --> 00:37:01,319 Speaker 4: starting at seven name New York Times. 789 00:37:01,400 --> 00:37:04,960 Speaker 2: It's Bloomberg Money, and we hope we've done personal finance retirement. 790 00:37:05,040 --> 00:37:07,799 Speaker 2: Our guests I thought were great on the wealth management 791 00:37:08,040 --> 00:37:09,160 Speaker 2: mystery Forward. 792 00:37:09,480 --> 00:37:11,960 Speaker 4: And that's a wrap for our first ever episode of 793 00:37:11,960 --> 00:37:12,680 Speaker 4: Bloomberg Money. 794 00:37:12,840 --> 00:37:13,680 Speaker 2: Was this the first one? 795 00:37:13,800 --> 00:37:16,600 Speaker 5: It was? And we'll return next Friday and do. 796 00:37:16,760 --> 00:37:18,680 Speaker 2: It without rehearsal. Well, see you then. 797 00:37:18,960 --> 00:37:22,960 Speaker 5: This is Bloomberg Money. We did it. We're without rehearsal. 798 00:37:24,120 --> 00:37:30,759 Speaker 2: I really have tickets. That's amazing. This is the Bloomberg 799 00:37:30,800 --> 00:37:34,760 Speaker 2: Money podcast, bringing you a smart look at the forces 800 00:37:34,800 --> 00:37:38,959 Speaker 2: shaping your financial life. I'm Tom Keen with Scarlet Food. 801 00:37:39,400 --> 00:37:42,439 Speaker 2: You can watch a show live on Bloomberg TV every 802 00:37:42,480 --> 00:37:46,400 Speaker 2: Friday at noon Wall Street Time. Subscribe to the podcast 803 00:37:46,440 --> 00:37:50,960 Speaker 2: on Apple, Spotify or wherever you listen, and as always, 804 00:37:51,040 --> 00:37:54,120 Speaker 2: on the Bloomberg Terminal and the Bloomberg Business app.