Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: A single best idea, the single best idea today. The
Speaker 2: conversation that Jonathan Farroll had with an exiting Stephen Myron
Speaker 2: was absolutely extraordinary. I can't say enough about the debate
Speaker 2: that Governor Myron has engendered over should central banks have
Speaker 2: a policy prescription and get out front versus wait to
Speaker 2: see what the data is As a broader sense, we
Speaker 2: thank Nawong for some choice comments on that interview. Really
Speaker 2: really interesting interview that John Farrell had with Governor Myron.
Speaker 2: A single best idea, Well, you've got to go to
Speaker 2: Sema Shaw coming off that interview talking about central banks
Speaker 2: from Principal Asset Management.
Speaker 1: Miss Shaw, there's a line in the sounder, you know,
Speaker 1: we don't get to a point where they so much disagreement.
Speaker 1: That actually is very difficult for markets to get to
Speaker 1: a point where they know the kind of direction that
Speaker 1: central banks are moving in. But at the same time
Speaker 1: having that active debate, I think it's important for the
Speaker 1: vested at this time we need to try and think through,
Speaker 1: for example, what is the impact of population growth, the
Speaker 1: impact of AI. Is it going to be disinflation or
Speaker 1: is it going to be inflationary. These are really really
Speaker 1: key questions that we ourselves are grappling with. They're trying
Speaker 1: to get an idea and understanding of how the federals
Speaker 1: of the Bank of England, et cetera are considering it.
Speaker 1: I think is important as long as it doesn't spill
Speaker 1: into significantly greater volatility, which makes it difficult to understand
Speaker 1: how your portfolio decisions are going to be impacted.
Speaker 2: Smash Principal Asset Management had a real emerging markets bent today.
Speaker 2: Wonderful was Paul Quincy. He's the JP Morgan driving all
Speaker 2: of their EM equity coverage, and you know, we were
Speaker 2: talking about like what do you buy in emerging markets?
Speaker 2: You buy the concrete company, you buy the telephone company.
Speaker 2: Well know, you can broaden out from that. But every
Speaker 2: once in a while, something falls off a cliff, and
Speaker 2: I would know, I've never been in a Jolly Bee.
Speaker 2: It's a Filipino fast food restaurant, but it's fallen off
Speaker 2: a cliff. Pat Quincy of JP Morgan and Jolly Be There's.
Speaker 3: Always going to be a couple of jolly Be's in
Speaker 3: any portfolio, right. That's part of the that's part of
Speaker 3: the life as an equity investor. I mean, I think
Speaker 3: where we would be. One of the big things we're
Speaker 3: looking out for, obviously, is when you see this level
Speaker 3: of enthusiasm we've got for semiconductors at the moment, are
Speaker 3: we setting ourselves up for a giant Jolly be type experience?
Speaker 3: And the thing so we when you get a big
Speaker 3: momentum move like this, we think there's three things to
Speaker 3: watch for. Stretch valuations, rising volatility, and peaking earnings estimates.
Speaker 3: So far valuations sort of mixed. Price to earnings low actually,
Speaker 3: but anything else high, price to sales, price to book.
Speaker 3: The companies are making so much money they're earning the valuations.
Speaker 3: Most of the memory of stocks are still on single
Speaker 3: digit multiples. Volatility, yes, going up an examentum.
Speaker 2: So strong bottle it. That's all I can say for
Speaker 2: those of you following the market. What you just heard
Speaker 2: there out of the gentleman from JP Morgan in the
Speaker 2: University of Durham, just listen to every word he said
Speaker 2: on those three points. Closing out that Jolly B thought
Speaker 2: I would really focus on margins in the first and
Speaker 2: second derivatives of margin distress or excellence here forward, on
Speaker 2: podcasts or on Apple, We're on Spotify, on YouTube, podcasts,
Speaker 2: single best Idea,