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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: This is the Bloomberg Daybreak Aisia podcast. I'm Doug Krisner.

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Speaker 2: You can join Brian Curtis and myself for the stories,

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Speaker 2: making news and moving markets in the APAC region. You

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Speaker 2: can subscribe to the show anywhere you get your podcast

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Speaker 2: and always on Bloomberg Radio, the Bloomberg Terminal, and the

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Speaker 2: Bloomberg Business app.

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Speaker 3: We are joined on the program now by Andrew Sliman.

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Speaker 3: I am Senior portfolio manager and head of Applied Equity

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Speaker 3: Advisors at Morgan Stanley. Andrew, great to have you back

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Speaker 3: on the program. A lot of the selling that we've

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Speaker 3: seen on Wall Street here and even elsewhere has been

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Speaker 3: in addressing the concentration in megacap names, and we've had

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Speaker 3: some seasonal factors too. But I want to start off

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Speaker 3: with a slightly different direction. The solid economic data that

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Speaker 3: we just reported there. It dents one of the other

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Speaker 3: bear talking points, a weakening economy, and it also kind

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Speaker 3: of adds to the City Economic Surprises Index that has

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Speaker 3: had a huge bounce in July. The economy is not

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Speaker 3: really weakening, is it.

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Speaker 4: Well, it's slowing, but it's not breaking. And I think

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Speaker 4: that's the key thing, and I think that's what is

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Speaker 4: a big reason you're seeing a rotation in leadership is

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Speaker 4: the market is coming around to believing that the FED

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Speaker 4: can cut that inflations come down. But they can cut,

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Speaker 4: but they can do it at their speed. It's not

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Speaker 4: a nervous cut. And in that environment, that's why I

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Speaker 4: think you're seeing small caps working. I think that's why

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Speaker 4: you're seeing cyclical cyclical socks working and a rotation away

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Speaker 4: from gross socks because seemingly the FED is getting what

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Speaker 4: they want, a low inflation and a slowing but not

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Speaker 4: breaking economy.

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Speaker 2: So are you seeing more of a rotation in coney

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Speaker 2: rather than any new money coming off the sideline.

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Speaker 4: I think there was quite a bit of money that

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Speaker 4: came off the sidelines in early July, but I think

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Speaker 4: this is more a rotation in the markets right now.

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Speaker 4: Now you know, I caveat all this by saying most

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Speaker 4: of the big megacaps tech stocks are yet to report,

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Speaker 4: and I think they will remind investors don't get too

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Speaker 4: negative on us. Our businesses are very very strong, so

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Speaker 4: I'm not I think it's a great What we've learned

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Speaker 4: in the last month is don't just own gross stocks,

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Speaker 4: don't just own megcap tech stocks, because they move together,

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Speaker 4: and when the world decides they don't like them, you're

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Speaker 4: gonna go down. You know, they all move together, So

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Speaker 4: you have to have some balance in your portfolio. For

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Speaker 4: what's happened in the last couple of weeks.

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Speaker 3: So we've seen Nvidia, broad Comment TSMC all pull back

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Speaker 3: about eighteen percent from inter day highs a couple of

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Speaker 3: weeks ago, and the NASTAC one hundred itself is down

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Speaker 3: about nine percent. We've seen kind of, you know, a

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Speaker 3: change basically in a lot of the momentum plays like

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Speaker 3: Eli Lilly for instance, nothing to do with high technology,

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Speaker 3: really down thirteen percent in eight sessions. So momentum plays

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Speaker 3: have been sort of turned on their head. But given

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Speaker 3: these numbers eighteen percent as I mentioned, and Lily down

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Speaker 3: fourteen percent, is it almost time to say enough already?

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Speaker 4: Yes? Because a question that I would ask you is

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Speaker 4: is there any fundamental change in any of these business

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Speaker 4: Has any of these companies come out and said eight

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Speaker 4: businesses and there is good? And so what I've learned

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Speaker 4: in this what I try to focus on in this

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Speaker 4: business is what companies are doing well that have raised guidance.

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Speaker 4: But for one reason the other Wall Street has fallen

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Speaker 4: out of love on a short term basis. I think

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Speaker 4: that's where you make your most money.

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Speaker 2: You've got a big bottom. I'm sorry to interrupt you there.

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Speaker 2: You've got a big convention in your town next month.

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Speaker 2: Is politics beginning to become a factor at all in

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Speaker 2: the way the market is kind of working through different

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Speaker 2: scenarios here, different styles of thought.

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Speaker 4: Yeah, I think so, because if you think about it,

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Speaker 4: you know, once uh, you know, kind of President Trump

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Speaker 4: you know, looked like he was, you know, pulling ahead

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Speaker 4: when Joe Biden was suffering after the debate. Small cap

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Speaker 4: that was the you know, that was part of the

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Speaker 4: process of small caps in some of the value ares

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Speaker 4: because I think he is perceived as good for those areas.

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Speaker 4: But this past Monday, when it was apparent that Harris

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Speaker 4: Kamala Harris is going to take over being the Democrat canddate,

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Speaker 4: you saw megacap tech stocks actually rally because she is

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Speaker 4: from San Francisco, she has ties to Silicon Valley. So

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Speaker 4: I think there is movement back and forth, as you know,

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Speaker 4: you know, determined by who who's leading in the polls.

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Speaker 4: But having said all that, I worried because we get

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Speaker 4: a lot of inquiry from our investors asking about, you know,

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Speaker 4: the election, presidential election, and I don't hear as much

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Speaker 4: questions about the FED policy. And so I think in general,

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Speaker 4: people focus too much on elections and not it's enough

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Speaker 4: on FED policy. There's no proof really that Democrats or Republicans,

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Speaker 4: you know, the market does better under one or other,

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Speaker 4: but it's it is pretty conclusive that, you know, easier

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Speaker 4: FED policy is better for stocks.

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Speaker 3: Well, we had some comments from Bill Dudley and also

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Speaker 3: Ian Shepherdson saying that the FED is dangerously close to

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Speaker 3: being behind the curve and they better act quickly. That

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Speaker 3: doesn't seem to quite gel with the argument you laid

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Speaker 3: out for as the economy is cooling, but it's not

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Speaker 3: really weakening fast.

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Speaker 4: Well, yeah, I mean I read those comments, and I

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Speaker 4: think that's one of the reason why I think we're

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Speaker 4: getting close to actually a bottom in this little short

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Speaker 4: term correction, because I think he's signaling that he's given

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Speaker 4: that the Fed's going to be, you know, cutting rates.

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Speaker 4: But but I if the economy was collapsing, okay, you

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Speaker 4: would see the yield curve uninvert. You would see the

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Speaker 4: two year, yield plummet relative to the tenure. The yield

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Speaker 4: curve has started to uninvert somewhat, but it's not yet,

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Speaker 4: and so I think, you know it is. I I

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Speaker 4: am of the belief, and I've listened to a few

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Speaker 4: industrial conference calls now where they're saying, yeah, some of

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Speaker 4: our businesses is slowing, but not our government business. Don't

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Speaker 4: lose sight of the fact that we have. It's a

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Speaker 4: lot of fiscal policy this year that is propping up

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Speaker 4: the economy. So I am definitely in the camp of

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Speaker 4: slowing but not breaking. And I think for Bill Dudley,

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Speaker 4: I think he's just saying, Okay, enough's enough. I think

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Speaker 4: they can ease.

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Speaker 2: We talk a lot on this show about markets in Asia.

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Speaker 2: How are you viewing opportunities offshore? Are you seeing anything

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Speaker 2: right now that's compelling?

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Speaker 4: Well, you know, very simple. What I start with is

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Speaker 4: where's the best earnings revisions happening is happening in the US,

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Speaker 4: and is happening in Japan. It's not happening in China.

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Speaker 4: It's certainly not happening in Europe. So those are areas

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Speaker 4: first I want to focus on. But having said that again,

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Speaker 4: as I said before, anytime there is opportunities where stocks

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Speaker 4: diverge from their fundamentals. I'm very interested so stock like

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Speaker 4: Taiwan Semiconductor some noise from politics, but boil Boy, their

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Speaker 4: business is booming. So you know, I think there's specific

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Speaker 4: ideas I just wouldn't make a big regional bet. Yeah.

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Speaker 3: I see that. You mentioned the leuxury good makers troubling

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Speaker 3: to a certain degree. They struggled with China. That's so

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Speaker 3: saved that for another day, Andrew. Thank you. Andrew Sliman

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Speaker 3: for Morgan Stanley.

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Speaker 2: Rebecca Waltzer. She is president of Walzer Wealth Management, and

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Speaker 2: she happens to be here in the Bloomberg Interactive Broker

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Speaker 2: Studio in New York. Good of you to drop by,

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Speaker 2: Thanks so much.

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Speaker 1: Thanks for having me.

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Speaker 2: Before we get into kind of the nuts and bolts,

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Speaker 2: what's happening in markets, I'd like to know what you're

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Speaker 2: hearing from clients right now. Are they worried about a

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Speaker 2: lot of the volatility that we've been seeing in markets.

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Speaker 1: Yeah, I think anytime you see a twenty percent run

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Speaker 1: up starting at the end of last year, and you

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Speaker 1: kind of see this beautiful number through March and then

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Speaker 1: you start to hit the volatility it's a little bit

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Speaker 1: unerving to anybody. But then you compound that with an

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Speaker 1: election year, you compound that with the crazy things that

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Speaker 1: have happened just in the last ten days Doug, and

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Speaker 1: you really see people start to say, what is going on?

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Speaker 1: Are we in some kind of seed change world turnover?

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Speaker 1: What is happening here? Of course, I have been Mochro

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Speaker 1: macroeconomically focused for the last two and a half years,

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Speaker 1: and I've been definitely talking to clients about the global

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Speaker 1: seed changes that are coming. So they're a lot more

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Speaker 1: aware than I would say the average investor client because

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Speaker 1: we're just so focused on it in our practice.

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Speaker 3: So the news hasn't really changed for companies like Nvidia

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Speaker 3: and Broadcom, but the theme has changed. Investors now are

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Speaker 3: kind of doubting whether or not, you know, companies will

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Speaker 3: be able to monetize AI. Do you see it that

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Speaker 3: way or do you think that this is just a

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Speaker 3: sort of healthy correction because we ran too far too fast.

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Speaker 1: I definitely think that we did have a little bit

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Speaker 1: of a rational exuberance since the end of Q four

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Speaker 1: last year, But it is an a monetization problem. Anytime

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Speaker 1: you're on a new dynamic, a new frontier, especially technology.

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Speaker 1: We have this perfect example with the dot com. You know,

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Speaker 1: we knew it would be monetizable at some point, but

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Speaker 1: you know, pets dot com that was worth a billion

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Speaker 1: dollars before it even had a to check a dog

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Speaker 1: bag out wasn't going to work. It's the same thing

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Speaker 1: with the AI runway. There's so many applications, but how

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Speaker 1: do we take it from industrial business to business B

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Speaker 1: to be to actual B two C and make it

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Speaker 1: profitable for both the consumer to use and the business

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Speaker 1: to produce. So that's really what we're seeing, and I

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Speaker 1: think the market has been priced so perfectly that if

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Speaker 1: you look at Google and you have a double beat,

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Speaker 1: but you still see it losing and trading in after

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Speaker 1: hours to the downside or people saying why, it's because

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Speaker 1: there was no real solid guidance on what AI is

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Speaker 1: actually going to deliver in terms of revenue and profitability.

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Speaker 2: You mentioned the fact that we're dealing with an election year.

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Speaker 2: Earlier in the show, we had a story on President

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Speaker 2: Trump commenting on the dollar, calling it a big currency problem.

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Speaker 2: One of the things that he highlighted, and Janet Yellen's

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Speaker 2: incidentally pushed back against this idea is that a strong

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Speaker 2: dollar is hurting US export competitiveness. Does he have a

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Speaker 2: point there or is the dollar strength really the reflection

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Speaker 2: of just the Fed trying to get inflation under control

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Speaker 2: and strong American economy and inflows from around the world

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Speaker 2: coming to the United States.

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Speaker 1: Well, I actually think it's both right. We definitely had

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Speaker 1: to strengthen the dollar to create too. It had to

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Speaker 1: become too expensive that we had less demand, we had

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Speaker 1: less economic activity, so we could bring inflation the heat

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Speaker 1: of the market down. So that had to happen. But

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Speaker 1: at the same time, look at our Japanese end situation,

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Speaker 1: you know, and the interventions that we've had with him

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Speaker 1: in just the last eight weeks. That is a problem.

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Speaker 1: This is a problem for you know, our partners globally

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Speaker 1: when they are bringing in and so tied intrically, their

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Speaker 1: currency is so tied to the dollar, and we have

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Speaker 1: you know, not to make the dollar political. I don't

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Speaker 1: like talking about politics, but you know, the rest of

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Speaker 1: the world does a lot of the rest of the world,

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Speaker 1: I should say, I should clarify, does view that America

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Speaker 1: did weaponize the dollar post Russia invasion of Ukraine in

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Speaker 1: March of twenty twenty two, and that has made a

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Speaker 1: lot of things happen a lot faster than maybe they

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Speaker 1: otherwise would have. Meaning d dollarization, the Bricks initiative, the

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Speaker 1: Mbridge initiative with the Bank of International Settlements, these things

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Speaker 1: that have come as a direct result from that action

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Speaker 1: really is a sea change moment in the global world

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Speaker 1: at currencies.

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Speaker 3: So you're dealing with high net worth individuals obviously to

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Speaker 3: a certain degree. I'm curious about when we see something

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Speaker 3: like Ford today down eighteen percent, it sort of raises

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Speaker 3: an eyebrow. I wonder whether or not the Wall Street

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Speaker 3: is looking a little bit more like a casino in

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Speaker 3: the past couple of weeks. So maybe you can even

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Speaker 3: say for the whole rally that we've seen. But do

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Speaker 3: you feel comfortable, I mean, how do your clients respond

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Speaker 3: to this kind of volatility in stock trading?

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Speaker 1: Yeah, I mean I think that it's unnerving if you're

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Speaker 1: just watching the tickers right and you don't understand what's

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Speaker 1: going on. Our clients I feel, I mean, maybe they

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Speaker 1: should be speaking on their behalf, but I feel that

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Speaker 1: they are a lot more expected this kind of volatility

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Speaker 1: because I've been talking to them about the underlying you know,

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Speaker 1: fundamentals and technicals, and that I don't see the strength

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Speaker 1: that Wall Street has seemed the last you know, really

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Speaker 1: the just the positive momentum I thought was going to

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Speaker 1: be problematic, just because it was so sector defined and real.

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Speaker 1: Like I mean, if you put a dollar into the

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Speaker 1: S and P five hundred right now, twenty nine cents

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Speaker 1: of that dollar goes to the top five positions. If

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Speaker 1: you look at the top ten positions, it becomes thirty

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Speaker 1: seven cents on the dollar. We've never seen this kinds

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Speaker 1: of concentration. When you have this level of concentration, that

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Speaker 1: means that these stocks have to be perfect, they can't

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Speaker 1: have anything.

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Speaker 3: Go ahead, Sorry didn't Apple. Didn't Apple just soar right

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Speaker 3: through the global financial crisis and build a business that was,

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Speaker 3: you know, legendary. You know that's a parallel, isn't it.

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Speaker 3: It's a secular A secular change is what AI is.

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Speaker 1: Yeah, you're you're absolutely right, and it will fundamentally change

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Speaker 1: everything that we do, how we work, how we live,

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Speaker 1: how we pay, how we do everything. It is probably

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Speaker 1: it is the largest technological change in the history of time,

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Speaker 1: and who knows what will come after. So yes, I

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Speaker 1: totally agree, But there is always a gap from the

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Speaker 1: runway to the application and the monetization, and so that's

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Speaker 1: what we're going to experience, and that will take time.

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Speaker 1: And unfortunately we don't have enough of a broad based

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Speaker 1: strength in the global economy to make AI carry the

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Speaker 1: tor trust for you know, successfully without any kind of

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Speaker 1: market problems volatility, And I do think I'll pull back.

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Speaker 2: I want to drag you back into politics.

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Speaker 1: Do you mind, No, none at all.

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Speaker 2: President Trump proposing tariffs ten percent and in some cases

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Speaker 2: something far greater than that, maybe one hundred percent, and

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Speaker 2: extending tax cuts if there is the opportunity to do so.

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Speaker 2: A lot of the economists that we have spoken with

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Speaker 2: point to those two problems or issues I should say,

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Speaker 2: as new problems on the horizon. Do you agree with that?

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Speaker 1: Oh gosh, you know, I am more of a laisse

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Speaker 1: a fair person, so I'm not usually a tariff person. Yes, yes,

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Speaker 1: But that's what exactly I was going to say. I

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Speaker 1: was like, when you see a Trump dealing with tariffs,

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Speaker 1: you're really dealing with him countermeasuring the most Favored Nation

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Speaker 1: status that the China still enjoys from the World Trade Organization,

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Speaker 1: even though they're really the second largest are in some

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Speaker 1: ways the largest economy in the world, So I think

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Speaker 1: that that's a counterbalance to other things that really aren't

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Speaker 1: technically fair and global financial arrangements. From a tax perspective,

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Speaker 1: of course, I would love as amount of taxes as possible,

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Speaker 1: But the truth is this country has a massive debt problem,

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Speaker 1: and I think that the debt problem could be a

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Speaker 1: crackup boom, a debt crisis, even a debt bubble collapse

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Speaker 1: that we could see. So as much as I think

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Speaker 1: that we must cut rates, because we have financed and

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Speaker 1: built acid classes in the last fifteen years on super

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Speaker 1: low cost of capital that cannot be sustained at these

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Speaker 1: higher levels of cost of care capital. If you cut

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Speaker 1: rates and blow up your taxes, the world is going

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Speaker 1: to say that dollar and the country has lost its

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Speaker 1: fiscal stability and we have to look to outside again.

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Speaker 1: It will just pressure again the d dollarization efforts that

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Speaker 1: are already so underway. So we can't go crazy with

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Speaker 1: tax cuts.

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Speaker 3: You'll kill me with this with this question, because I'm

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Speaker 3: giving and give you thirty seconds to answer it. In

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Speaker 3: terms of future massive changes in taxes in the United States,

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Speaker 3: how do you advise people to manage their money.

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Speaker 1: Well, I can tell you for an absolute certainty that

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Speaker 1: I believe that pre tax deferred retirement build up in

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Speaker 1: iras and four one ks are an absolute tax trap,

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Speaker 1: and that tax policy, mathematically speaking, can only go up

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Speaker 1: from here if we aren't going to actually deal with

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Speaker 1: our domestic social programs and cut benefits. We don't have

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Speaker 1: enough tax revenue to pay for even our baby boomers

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Speaker 1: as they retire in mass by twenty thirty, So we

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Speaker 1: have to deal with that.

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Speaker 2: Good conversation, very scary stuff. Thank you so much for

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Speaker 2: joining us, Rebecca, Rebecca Wallser, president of Walls or Wealth Management,

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Speaker 2: joining us here.

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Speaker 3: David Finnerty joins us Bloomberg FX and rate strategist around

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Speaker 3: at a time, but I just wanted to mention briefly David.

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Speaker 3: Singapore'smas maintained the slope, width and center of the currency band,

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Speaker 3: and the MAAS said that the core CPI will fall

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Speaker 3: further to around two percent in twenty twenty five. And

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Speaker 3: also we had inflation numbers in Tokyo accelerating for a

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Speaker 3: third month in July up to two point two percent

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Speaker 3: for consumer prices excluding fresh food. It's not all that hot,

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Speaker 3: but it was a little hotter than the two point

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Speaker 3: one percent, So a very basic question, are the kids

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Speaker 3: all right.

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Speaker 5: At the moment? Yes, I mean if you go to

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Speaker 5: mis first, coinflation is ticking down the MS, it's say

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Speaker 5: the expected to discern the drop in Q four and

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Speaker 5: then further two per set in twenty twenty five, so

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Speaker 5: they've seen the path they're liking it. I think the

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Speaker 5: key thing for the market is, well, how would the

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Speaker 5: recent Sloan gradual slowing of core CPR, which is what

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Speaker 5: MAS focused on, would it change the exchange rate policies

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Speaker 5: because farther than the interest rates, they focus on the

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Speaker 5: exchange rate or a sneer to be exact, And at

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Speaker 5: the moment the market wasn't shut and the moment it's

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Speaker 5: definitely no. In fact, there's signaling they're in no hurry

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Speaker 5: to change it. So if you abolish on a Singapore

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Speaker 5: dollar or you want to think of being outperformer, that's

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Speaker 5: certainly good news. And read chat Tokyo. I think basically

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Speaker 5: came in nine slightly lesson expected. Obviously it's more recent

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Speaker 5: than the national data because it's this month's data. I think,

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Speaker 5: going ahead of boj's decision, is still elevated. So if

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Speaker 5: they want to hike in again, that isn't if the

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Speaker 5: market's certainly thinking they may. If they do hike, they

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Speaker 5: certainly have the argument to back it up.

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Speaker 2: So the end has strengthened a bit in recent days.

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Speaker 2: Maybe that t has taken a bit of pressure. Is

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Speaker 2: there a call that you'd like to make on the

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Speaker 2: BOJ meeting next week?

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Speaker 5: I think, well, I think the call is if they

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Speaker 5: don't hike. I think the market now is looking for

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Speaker 5: high commits, but I think about sixty four percent price

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Speaker 5: in for ten basis points, So I think if they

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Speaker 5: don't hike now, then I think the market becomes disappointed,

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Speaker 5: and the market tends to penalize you by setting your

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Speaker 5: currency if they're disappointed. So what Ironically, even though the

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Speaker 5: BOJ hasn't really done anything, the market likes to get

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Speaker 5: ahead of itself because it's forward thinking. And now I

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Speaker 5: think if the BOJ doesn't deliver, then dolly En starts

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Speaker 5: heading up back up higher again. You have to see

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Speaker 5: what the FED says, that's obviously a key component, and

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Speaker 5: what the US data ism and payroll data says. But

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Speaker 5: if you'd say, just the BOJ by itself, if it

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Speaker 5: doesn't hike next week, I think dotty en starts pushing

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Speaker 5: higher again. That can averse quickly though, if US payroll

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Speaker 5: data was weak.

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Speaker 3: So let's take a look at overall risk and you

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Speaker 3: know how the global economy is performing. We had that

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Speaker 3: good economic data out of the United States, but we

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Speaker 3: had weak data in Germany and some warnings in fre

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Speaker 3: and we all know what's happening in China. On balance,

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Speaker 3: should we feel comfortable with the state of play in

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Speaker 3: the global economy or concern I.

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Speaker 5: Think that there's definitely a slow in economy. As you

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Speaker 5: right said, the US data was yes, there was very strong,

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Speaker 5: and we'll be looking at the data next week to

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Speaker 5: support that. But you he said, in Germany, the PMI

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Speaker 5: data came out in your zone did disappoint and obviously

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Speaker 5: China's been disappointing. But again, I think it's a gradual

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Speaker 5: slow down. No one's expecting a great recession at the moment.

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Speaker 5: I mean, you think yours an economy actually has actually

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Speaker 5: picked up. The German economy has picked up. It was

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Speaker 5: in a worse state just you know, a few months

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Speaker 5: ago or last year, so there has been an improvement.

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Speaker 5: So I don't think you can go by just one

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Speaker 5: piece of data and say that's it. You have to

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Speaker 5: look at the trend. I think the more we have

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Speaker 5: a slow in economic global economy, but once not in

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Speaker 5: overall bad shape. It's growing and we have inflation coming

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Speaker 5: under control. So I think the goldlock scenario to some

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Speaker 5: degree still does exist.

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Speaker 2: And raid cuts in China a number of them, I

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Speaker 2: mean loan prime rates, the LF as well. What's your sense.

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Speaker 2: So in terms of the strategy that the PBOC is

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Speaker 2: undertaking at this moment, well.

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Speaker 5: It certainly seems that they are directing the policy more

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Speaker 5: towards the shorter term rates seven day versus repo rates.

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Speaker 5: But obviously when the people look at the third Plenum

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Speaker 5: last week, and if we're honest, no one's really surprised

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Speaker 5: that it didn't come out with a real stimulating growth program.

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Speaker 5: And therefore we're seeing some policy support from monetary policy.

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Speaker 5: And then that you can't do it all by itself.

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Speaker 5: It does need fiscal support to do some of the

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Speaker 5: heavy lifting. But certainly it seems to be that they

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Speaker 5: are comfortable easy rates. I say comfortable because obviously it

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Speaker 5: puts pressure normally you think on that will weakened the yuan.

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Speaker 5: Obviously we saw it rally yesterday, but I think some

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Speaker 5: of that was really more to do with the global

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Speaker 5: unwinding of positions that we've seen this whole week, with

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Speaker 5: obviously then being the main beneficiary. I think if US

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Speaker 5: data continues to be strong, I think the dollar ye

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Speaker 5: one will slightly grown higher. But at the moment, just

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Speaker 5: this easy of policy rates does indicate that they are

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Speaker 5: more tolerant s we say of a slightly weaky on.

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Speaker 3: Well, this is the seasonally tough period for equities and

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Speaker 3: other risk assets. If we do see a lot more

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Speaker 3: selling in global equities, would that be positive for the dollar?

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Speaker 3: Would we see you know, sort of the dollar as

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Speaker 3: a haven play benefit and you know, throw some of

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Speaker 3: these movements in the yuan and the un and the

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Speaker 3: yen off to.

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Speaker 5: Something to go. Yes, I think that does the dollar

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Speaker 5: tend to benefit? And say in risk off it does,

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Speaker 5: But then so does the en, and so does the

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Speaker 5: Swiss rank. So I think the move against the end

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Speaker 5: gets more muddied, shall we say, by this risk off,

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Speaker 5: I think more of the policies of the Fed and

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Speaker 5: BOJA will come to play. But certainly, if you're looking

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Speaker 5: at the dollar versus other counties, say the year one

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Speaker 5: or against Asian currencies, then yes, the risk off really

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Speaker 5: should be, in theory be dollars supportive. And I think

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Speaker 5: what's interesting you have. I've had this big rally in

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Speaker 5: equities and it's gone on. No, no, no, no, on and

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Speaker 5: on and markets historically at some point they all correct.

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Speaker 5: They just do it. And I'm not saying they crash.

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Speaker 5: I'm just saying they correct. Could it be twenty percent correction,

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Speaker 5: could be a fifteen percent correction, and all you really

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00:23:13,480 --> 00:23:16,119
Speaker 5: had in this say, look can SP five hundred is

437
00:23:16,119 --> 00:23:19,240
Speaker 5: this light correction in April vishyere and it chugged on

438
00:23:19,520 --> 00:23:21,440
Speaker 5: and really it's gone from about forty one hundred to

439
00:23:21,680 --> 00:23:24,399
Speaker 5: fifty six hundred and fifty seven hundred, so very big rally.

440
00:23:24,600 --> 00:23:27,040
Speaker 5: So if early next week a week, I think there's

441
00:23:27,119 --> 00:23:28,719
Speaker 5: room for that correction to be bigger.

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00:23:29,119 --> 00:23:31,560
Speaker 3: Yeah, it's only been about five percent for the S

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00:23:31,600 --> 00:23:34,040
Speaker 3: and P five hundred, And it's interesting that we've seen

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00:23:34,119 --> 00:23:37,280
Speaker 3: the yen strengthened by five percent, the Nike correct, the

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00:23:38,560 --> 00:23:41,800
Speaker 3: Nasdaq one hundred correct. David, Thank you, David Finnerty, Bloomberg

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00:23:42,119 --> 00:23:43,159
Speaker 3: FX strategist.

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