1 00:00:00,800 --> 00:00:04,040 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 2 00:00:04,040 --> 00:00:06,920 Speaker 1: my co host Matt Miller. Every business day, we bring 3 00:00:06,960 --> 00:00:11,520 Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along 4 00:00:11,560 --> 00:00:15,600 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,600 --> 00:00:18,479 Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:22,279 Speaker 1: at Bloomberg dot com slash podcast. Taylor, when I was 7 00:00:22,320 --> 00:00:25,120 Speaker 1: a kid, it was about space was big. We had 8 00:00:25,200 --> 00:00:28,800 Speaker 1: the Apollo program. Um, you know, we'd watch it from 9 00:00:28,880 --> 00:00:31,720 Speaker 1: school in our classrooms. Launches and splashdowns in the middle 10 00:00:31,720 --> 00:00:33,200 Speaker 1: of the ocean. We have people walking on the moon. 11 00:00:33,240 --> 00:00:37,080 Speaker 1: It was really really cool time. Space is making a 12 00:00:37,120 --> 00:00:39,680 Speaker 1: big comeback. You know, it's been kind of quiet since 13 00:00:39,680 --> 00:00:41,840 Speaker 1: the Space Shuttle era, but it's making a big comeback. 14 00:00:41,840 --> 00:00:45,000 Speaker 1: And now we've got billionaires going up seemingly weekly here 15 00:00:45,040 --> 00:00:47,080 Speaker 1: into space or Richard Branson over the weekend. I think 16 00:00:47,120 --> 00:00:49,920 Speaker 1: we've got Jeff Bezos and a matter of days and 17 00:00:49,920 --> 00:00:53,000 Speaker 1: then Elon Musk is out there somewhere. I'm sure, um, 18 00:00:53,080 --> 00:00:55,360 Speaker 1: let's get an over you what's going on in the 19 00:00:55,400 --> 00:00:58,640 Speaker 1: world of space. Laura for Sick Space analysts and owner 20 00:00:58,680 --> 00:01:02,720 Speaker 1: of Astroltical, author of rise of the space age millennial. 21 00:01:02,800 --> 00:01:08,000 Speaker 1: She's also NASA subject matter expert for Planetary Science Missions. Laura, 22 00:01:08,080 --> 00:01:10,920 Speaker 1: this is really a cool time for space travel and 23 00:01:11,000 --> 00:01:15,479 Speaker 1: people that are really into space travel. UM, give us 24 00:01:15,760 --> 00:01:19,960 Speaker 1: your sense, your takeaway on the importance of Sir Richard 25 00:01:19,959 --> 00:01:23,560 Speaker 1: Branson's flight yesterday and the upcoming Jeff Bezos flight. What 26 00:01:23,640 --> 00:01:25,759 Speaker 1: does it tell you about the future of space travel. 27 00:01:26,600 --> 00:01:28,440 Speaker 1: This is really a great time because this is the 28 00:01:28,480 --> 00:01:32,560 Speaker 1: emergence of true commercial private space flight. Where back in 29 00:01:32,600 --> 00:01:35,440 Speaker 1: the two thousands we saw commercial space flight beginning with 30 00:01:35,520 --> 00:01:38,440 Speaker 1: tourists going to the International Space Station, but through Russian 31 00:01:38,560 --> 00:01:42,000 Speaker 1: rockets and Russian training, and now we're seeing purely commercial 32 00:01:42,000 --> 00:01:46,720 Speaker 1: efforts where um, just now yesterday we saw Richard Branson 33 00:01:46,720 --> 00:01:49,880 Speaker 1: and a crew flying on his own rocket through Virgin 34 00:01:49,920 --> 00:01:51,960 Speaker 1: Chalactic and then, as you said, in about eight days, 35 00:01:51,960 --> 00:01:54,960 Speaker 1: we're going to see Jeff Bezos and his crew fly 36 00:01:55,280 --> 00:01:58,520 Speaker 1: on a Blue Origin rocket. And then later this year 37 00:01:58,560 --> 00:02:02,200 Speaker 1: in September, we're gonna see a crew go to um 38 00:02:02,640 --> 00:02:05,040 Speaker 1: orbital space and just orbit Earth for a few days 39 00:02:05,040 --> 00:02:08,240 Speaker 1: through the inspiration formission with Space Sex. So lots of 40 00:02:08,280 --> 00:02:12,359 Speaker 1: really great private spacelight going on, Laura, is it okay 41 00:02:12,440 --> 00:02:15,399 Speaker 1: to ask sort of how you're thinking about the difference 42 00:02:15,480 --> 00:02:20,240 Speaker 1: between the Virgin Galactic versus the Blue Origin. There's differences, 43 00:02:20,280 --> 00:02:23,680 Speaker 1: I believe in one has a few pilots. One I 44 00:02:23,720 --> 00:02:26,400 Speaker 1: think is more automated. Is there a difference in the 45 00:02:26,400 --> 00:02:32,000 Speaker 1: way you're thinking about profitability for these companies or just frankly, 46 00:02:32,080 --> 00:02:35,200 Speaker 1: the technicals of of going up there on on two 47 00:02:35,320 --> 00:02:39,880 Speaker 1: or three different different ships that are operated differently. You're 48 00:02:39,880 --> 00:02:42,240 Speaker 1: exactly right, there's a there's a big difference between the two. 49 00:02:42,320 --> 00:02:44,720 Speaker 1: So one yesterday we saw was a carrier plane that 50 00:02:44,800 --> 00:02:47,320 Speaker 1: released a space plane that launched with two pilots and 51 00:02:47,400 --> 00:02:50,359 Speaker 1: four passengers. And the one that we're going to see 52 00:02:50,360 --> 00:02:52,799 Speaker 1: in eight days Blue Origin is the traditional rocket with 53 00:02:52,880 --> 00:02:55,200 Speaker 1: a capital on top and a capsule separates and lands 54 00:02:55,240 --> 00:02:58,120 Speaker 1: with parachutes. So that is a difference in approach, and 55 00:02:58,160 --> 00:02:59,919 Speaker 1: we're going to have to see how the market plays 56 00:03:00,000 --> 00:03:02,959 Speaker 1: out on whether customers prefer one method or the other, 57 00:03:03,080 --> 00:03:05,440 Speaker 1: or whether safety plays out one method or the other. 58 00:03:05,680 --> 00:03:07,400 Speaker 1: But I think it's too early to say that one 59 00:03:07,440 --> 00:03:09,239 Speaker 1: is better than the other. I think we're just gonna 60 00:03:09,280 --> 00:03:10,880 Speaker 1: have to see, and I will go on both of them. 61 00:03:11,600 --> 00:03:13,799 Speaker 1: I'm sure you and I would too. I'm not sure 62 00:03:13,919 --> 00:03:15,959 Speaker 1: two or fifty thousand dollars a seat though, but for 63 00:03:16,240 --> 00:03:19,160 Speaker 1: a lot of folks probably worth it. So, Laura, what's 64 00:03:19,200 --> 00:03:21,920 Speaker 1: the what are like next steps do you think for 65 00:03:22,080 --> 00:03:26,359 Speaker 1: the commercialization if you will, of space and space travel? 66 00:03:26,400 --> 00:03:28,640 Speaker 1: What are there? I mean, these things are great, Uh, 67 00:03:28,720 --> 00:03:31,880 Speaker 1: it's really interesting, but what are the next steps? We're 68 00:03:31,880 --> 00:03:35,600 Speaker 1: seeing these two sub orbital carriers come online with paying 69 00:03:35,640 --> 00:03:39,160 Speaker 1: passengers and also science. There's science has being done. There 70 00:03:39,160 --> 00:03:41,640 Speaker 1: was a science experiment on the one yesterday, So there's 71 00:03:41,640 --> 00:03:44,920 Speaker 1: some really great opportunities there for not just rich tourists, 72 00:03:45,000 --> 00:03:49,240 Speaker 1: but also for research institutions, NASA and other governments that 73 00:03:49,320 --> 00:03:51,320 Speaker 1: might be able to fly their science or do training 74 00:03:51,360 --> 00:03:54,040 Speaker 1: for astronauts. There's also think I said, space X, who 75 00:03:54,120 --> 00:03:56,720 Speaker 1: is going to be flying not just um, not just 76 00:03:56,800 --> 00:03:59,480 Speaker 1: paying people to the International Space Station as they've been 77 00:03:59,480 --> 00:04:02,720 Speaker 1: doing with the astronauts since last year, but also just 78 00:04:02,800 --> 00:04:05,000 Speaker 1: in orbit around the Earth and a free flyer just 79 00:04:05,040 --> 00:04:07,920 Speaker 1: doing a crew dragon fleece free flyer not even attached 80 00:04:07,960 --> 00:04:10,520 Speaker 1: to the space station. But speaking of space stations, there 81 00:04:10,560 --> 00:04:13,080 Speaker 1: are going to be private space stations coming on board 82 00:04:13,120 --> 00:04:15,360 Speaker 1: in the next decade, so we should see companies like 83 00:04:15,400 --> 00:04:18,440 Speaker 1: Axiom Space and others starting to put up space stations 84 00:04:18,480 --> 00:04:21,400 Speaker 1: that will um work with the International Space Station and 85 00:04:21,440 --> 00:04:25,159 Speaker 1: eventually replace the International Space Station. It's just incredible, I 86 00:04:25,160 --> 00:04:27,280 Speaker 1: think when you think about how far we've come, Paul 87 00:04:27,360 --> 00:04:31,200 Speaker 1: in the last even just decade in terms of commercial 88 00:04:31,400 --> 00:04:34,800 Speaker 1: space flight, and and Laura, I mean it's interesting hearing 89 00:04:34,920 --> 00:04:39,479 Speaker 1: some funny conversations earlier this morning that eventually we'll run 90 00:04:39,520 --> 00:04:42,800 Speaker 1: out of billionaires who can afford this, and it'll want 91 00:04:42,839 --> 00:04:46,080 Speaker 1: to be more mass market. How are you thinking about 92 00:04:46,320 --> 00:04:50,160 Speaker 1: pricing and making it more affordable? What does that look 93 00:04:50,160 --> 00:04:53,159 Speaker 1: like to you? Right so, right now, a trip to 94 00:04:53,160 --> 00:04:56,239 Speaker 1: the International Space Station costs roughly fifty million dollars. There's 95 00:04:56,240 --> 00:04:58,320 Speaker 1: not many people who can't afford that, but a trip 96 00:04:58,360 --> 00:05:01,120 Speaker 1: to several will space is were affordable for for a 97 00:05:01,200 --> 00:05:04,080 Speaker 1: larger group of people. Still not me, but as you said, 98 00:05:04,279 --> 00:05:06,200 Speaker 1: roughly a quarter of a million dollars. We don't know 99 00:05:06,240 --> 00:05:08,040 Speaker 1: the price that Blue Origin is going to sell their 100 00:05:08,040 --> 00:05:10,719 Speaker 1: tickets for um, and that might be affordable for people 101 00:05:10,760 --> 00:05:13,680 Speaker 1: who save up enough money or for people who are sponsored. 102 00:05:13,680 --> 00:05:16,240 Speaker 1: There's a group called Space for Humanity and other groups 103 00:05:16,240 --> 00:05:19,159 Speaker 1: that are trying to sponsor the quote unquote normal people 104 00:05:19,279 --> 00:05:22,320 Speaker 1: who can fly on suborbital space flight. Um. And then 105 00:05:22,440 --> 00:05:25,880 Speaker 1: as this technology become more and more common, just as 106 00:05:25,960 --> 00:05:28,800 Speaker 1: other technologies started out with the wealthy and then we're 107 00:05:28,880 --> 00:05:31,640 Speaker 1: brought downs in price to make it more accessible to 108 00:05:31,640 --> 00:05:34,200 Speaker 1: the common person. The theory is that will happen with 109 00:05:34,240 --> 00:05:37,760 Speaker 1: spaceflight as well. So Laura just want to get a 110 00:05:37,800 --> 00:05:39,840 Speaker 1: sense here what I grew up again, It was NASA, 111 00:05:39,880 --> 00:05:42,839 Speaker 1: It was the U. S. Government leading the way. My 112 00:05:42,920 --> 00:05:46,080 Speaker 1: question now is where is NASA in the global space 113 00:05:46,520 --> 00:05:49,960 Speaker 1: competitive race visa v. China, Russia. Where we as a 114 00:05:50,080 --> 00:05:53,200 Speaker 1: country now as becomes you know, maybe some of the 115 00:05:53,200 --> 00:05:58,080 Speaker 1: responsibility shifts from NASA to these commercial entities. NASA is 116 00:05:58,200 --> 00:06:00,599 Speaker 1: very focused on its Artemis program right now, which is 117 00:06:00,640 --> 00:06:03,280 Speaker 1: going to send the next the next man, and the 118 00:06:03,320 --> 00:06:05,760 Speaker 1: first woman and the first person's color to the Moon. 119 00:06:06,160 --> 00:06:09,200 Speaker 1: It is as soon as four and that's really exciting 120 00:06:09,240 --> 00:06:11,960 Speaker 1: because there is a bit of a jew political competition 121 00:06:12,000 --> 00:06:14,720 Speaker 1: there because the Chinese and the Russian partner to do 122 00:06:15,080 --> 00:06:17,880 Speaker 1: a winner base as well. It's in a different time frame, 123 00:06:17,880 --> 00:06:20,640 Speaker 1: about a decade later than NASA intends to. But NASA's 124 00:06:20,680 --> 00:06:23,159 Speaker 1: partnering with countries all around the world something called the 125 00:06:23,279 --> 00:06:27,200 Speaker 1: Artemis Accords where they partnered with twelve countries around the world. Um, 126 00:06:27,200 --> 00:06:29,560 Speaker 1: it's gonna be a real international partnership there. It's not 127 00:06:29,600 --> 00:06:31,359 Speaker 1: going to be like the Apollo program where it was 128 00:06:31,720 --> 00:06:34,039 Speaker 1: mainly you focused on the United States. This is really 129 00:06:34,080 --> 00:06:36,360 Speaker 1: going to be an international partnership. We even have a 130 00:06:36,360 --> 00:06:40,240 Speaker 1: Canadian astronaut confirmed to fly with American astronaut on the 131 00:06:40,320 --> 00:06:43,640 Speaker 1: Artemist mission around the Moon before the first woner landing 132 00:06:43,720 --> 00:06:45,960 Speaker 1: in the Artemist three mission. So that's really exciting to 133 00:06:45,960 --> 00:06:49,560 Speaker 1: see us finally returned back to the Moon. Laura, I'm 134 00:06:49,560 --> 00:06:50,960 Speaker 1: going to get a lot of hate mail for this, 135 00:06:51,080 --> 00:06:52,760 Speaker 1: but it's my job to ask, so I'm going to 136 00:06:52,880 --> 00:06:54,640 Speaker 1: ask it anyways. I'm going to try to do this 137 00:06:54,720 --> 00:06:58,599 Speaker 1: in the nicest way possible as a space analyst, what 138 00:06:58,800 --> 00:07:03,200 Speaker 1: is the risk the headline risk around the carbon footprint. 139 00:07:03,240 --> 00:07:06,159 Speaker 1: I mean, you think about all the focus on going 140 00:07:06,200 --> 00:07:08,760 Speaker 1: green and protecting our planet and then you have a 141 00:07:08,760 --> 00:07:11,280 Speaker 1: bunch of billionaires who are going into space for fun. 142 00:07:11,960 --> 00:07:15,200 Speaker 1: Is there a risk of any backlash on wondering what 143 00:07:15,280 --> 00:07:20,120 Speaker 1: this is doing to the environment. It's no more harmful 144 00:07:20,120 --> 00:07:22,280 Speaker 1: to the environment than the other types of transportation that 145 00:07:22,280 --> 00:07:25,400 Speaker 1: we use is a key that's a key point right there, 146 00:07:25,480 --> 00:07:28,360 Speaker 1: right that we need to be responsible and how we 147 00:07:28,600 --> 00:07:31,840 Speaker 1: develop our technology and improve our technology to be responsible 148 00:07:31,840 --> 00:07:34,000 Speaker 1: stewards of Earth. And one thing that I would like 149 00:07:34,080 --> 00:07:36,600 Speaker 1: to personally experience I've only heard from other astronauts is 150 00:07:36,640 --> 00:07:39,280 Speaker 1: something called the open view effect where people who see 151 00:07:39,280 --> 00:07:42,160 Speaker 1: the Earth from above, whether that's in orbit or in 152 00:07:42,240 --> 00:07:46,040 Speaker 1: SubOrbit um, they come across a different perspective where they 153 00:07:46,080 --> 00:07:50,120 Speaker 1: actually feel more environmentally connected to our planet. So that 154 00:07:50,240 --> 00:07:52,560 Speaker 1: might be a way that changes people's minds and makes 155 00:07:52,560 --> 00:07:55,680 Speaker 1: them more environmentally conscious by seeing our Earth as one 156 00:07:55,760 --> 00:07:58,400 Speaker 1: fragile planet. Hey Laura, thanks so much for joining us, 157 00:07:58,480 --> 00:08:01,400 Speaker 1: or really appreciate you coming on and sharing your thoughts. 158 00:08:01,480 --> 00:08:04,880 Speaker 1: Law Force like space annalys and owner of Asterioltical, also 159 00:08:05,040 --> 00:08:11,360 Speaker 1: rise of the Space age millennials. This is Bloomberg. You know. 160 00:08:11,400 --> 00:08:14,040 Speaker 1: As I talked to Tom Keane, as I typically do, 161 00:08:14,160 --> 00:08:16,400 Speaker 1: it's always a question of when do we get Tom 162 00:08:16,440 --> 00:08:18,800 Speaker 1: into this market. He's in that triple leverage all cash 163 00:08:18,840 --> 00:08:22,640 Speaker 1: fund and uh, he always feels like he's missed his opportunity. 164 00:08:22,960 --> 00:08:25,520 Speaker 1: But here we are at all time highs again for 165 00:08:25,560 --> 00:08:28,640 Speaker 1: the equity Indusseries is it time to raise cash? What 166 00:08:28,680 --> 00:08:31,040 Speaker 1: do we do here? David ko Talk, chairman and chief 167 00:08:31,040 --> 00:08:34,080 Speaker 1: investment officer Kumblin Advisors, joins us. I believe he's in 168 00:08:34,160 --> 00:08:37,000 Speaker 1: Colorado today. Why would you be in Florida when you 169 00:08:37,000 --> 00:08:40,160 Speaker 1: can be in Colorado in uh the summer. David, thanks 170 00:08:40,160 --> 00:08:42,400 Speaker 1: so much for joining us here. Again, what do we 171 00:08:42,440 --> 00:08:47,000 Speaker 1: tell our good friend Tom Keane about these equity markets? Well, 172 00:08:47,040 --> 00:08:50,800 Speaker 1: thank you very much, fall and I gathered Taylor as 173 00:08:50,920 --> 00:08:53,440 Speaker 1: with you, and it's very nice to chat with old 174 00:08:53,480 --> 00:08:57,400 Speaker 1: friends from Summit County, Colorado, where nine thousand feet nice 175 00:08:57,559 --> 00:09:01,080 Speaker 1: and you just announced Webber Grill and I would say, 176 00:09:01,160 --> 00:09:05,040 Speaker 1: if Taylor and you can find your way to Colorado, 177 00:09:05,240 --> 00:09:08,440 Speaker 1: I will cook you a steak on the deck on 178 00:09:08,600 --> 00:09:13,719 Speaker 1: that Webb grilled sole. As for Tom Kane and what 179 00:09:13,800 --> 00:09:16,280 Speaker 1: he should do with cash, I can't say, but I 180 00:09:16,360 --> 00:09:19,640 Speaker 1: can tell you we have built a cash reserve here recently. 181 00:09:20,480 --> 00:09:24,600 Speaker 1: We are not fully invested. Um. It's been a marvelous 182 00:09:24,720 --> 00:09:30,880 Speaker 1: first quarter, much beyond anyone's expectations. And my grandfather, bless 183 00:09:31,000 --> 00:09:35,080 Speaker 1: his memory, taught me you never get hurt taking some profits. 184 00:09:35,120 --> 00:09:38,080 Speaker 1: So we took a part of the profits of the 185 00:09:38,120 --> 00:09:41,160 Speaker 1: first quarter where we had achieved in six months what 186 00:09:41,280 --> 00:09:44,440 Speaker 1: we thought we would achieve in the whole year, and 187 00:09:44,520 --> 00:09:48,480 Speaker 1: we banked a little and are waiting for opportunity. The 188 00:09:48,640 --> 00:09:52,599 Speaker 1: rest of the portfolios in the United States et F 189 00:09:52,840 --> 00:09:57,520 Speaker 1: structured portfolio, the U S. E t F portfolio is 190 00:09:58,080 --> 00:10:03,520 Speaker 1: heavily overweight. The health sector almost double market wait market 191 00:10:03,520 --> 00:10:05,920 Speaker 1: wait for the if you look at the sectors is 192 00:10:05,960 --> 00:10:11,640 Speaker 1: approximately four or so. We're about twenty eight, very broadly 193 00:10:11,679 --> 00:10:19,280 Speaker 1: diversified within healthcare, devices, parmaceutical, biotech, the gamut structured with 194 00:10:19,440 --> 00:10:23,000 Speaker 1: E t F, and we believe the pandemic is not 195 00:10:23,240 --> 00:10:27,959 Speaker 1: over long haul Covid is with us for a while, 196 00:10:28,720 --> 00:10:33,280 Speaker 1: maybe years, and the healthcare sector has a monumental task 197 00:10:33,440 --> 00:10:36,920 Speaker 1: ahead of it and will step up and deliver results 198 00:10:36,920 --> 00:10:39,200 Speaker 1: as best as it care. You know, David, we love 199 00:10:39,240 --> 00:10:42,960 Speaker 1: getting you on this program more than just the opportunity 200 00:10:43,120 --> 00:10:45,960 Speaker 1: to have you grill us some stakes. You mentioned you're 201 00:10:45,960 --> 00:10:50,199 Speaker 1: not fully invested, and I am curious, what would it take. 202 00:10:50,600 --> 00:10:54,400 Speaker 1: What is the opportunity? Is it a ten pullback? What 203 00:10:54,640 --> 00:10:58,920 Speaker 1: is it that you would be willing to commit more cash? Well, 204 00:10:59,520 --> 00:11:05,240 Speaker 1: I think there's several major issues about which there's uncertainty. 205 00:11:05,400 --> 00:11:09,360 Speaker 1: Uncertainty means you can't put probabilities on that. Taylor. We 206 00:11:09,440 --> 00:11:14,480 Speaker 1: don't know where this China initiative, which is anti US, 207 00:11:14,640 --> 00:11:19,320 Speaker 1: anti capital markets, pulling I p o s, putting on restrictions, 208 00:11:19,400 --> 00:11:23,240 Speaker 1: dealing with two hundred and fifty securities of various types 209 00:11:23,280 --> 00:11:27,040 Speaker 1: that trade in the United States, is going to lead us. 210 00:11:27,120 --> 00:11:30,520 Speaker 1: We have a capital market conflict between the United States 211 00:11:30,600 --> 00:11:34,120 Speaker 1: and China, the two largest economies in the world number one. 212 00:11:34,160 --> 00:11:37,240 Speaker 1: We don't know where that goes, but it can't be pretty. Second, 213 00:11:37,600 --> 00:11:40,480 Speaker 1: we don't have herd immunity in the United States, and 214 00:11:40,559 --> 00:11:47,199 Speaker 1: we have twenty five of the population that is rejecting science. 215 00:11:47,720 --> 00:11:51,280 Speaker 1: Now there's a debate about science, no question about it, 216 00:11:51,720 --> 00:11:55,719 Speaker 1: but there's also evidence. And when you look around, you 217 00:11:55,760 --> 00:12:01,400 Speaker 1: see that the vaccination rollout is not work being completely 218 00:12:01,520 --> 00:12:04,040 Speaker 1: as expected. You then you look at the rest of 219 00:12:04,080 --> 00:12:07,600 Speaker 1: the world and you say, there's six point eight billion 220 00:12:07,679 --> 00:12:10,600 Speaker 1: people out of seven point eight billions that have not 221 00:12:10,800 --> 00:12:14,600 Speaker 1: had a vaccination at all. They're in places where public 222 00:12:14,640 --> 00:12:20,120 Speaker 1: health systems are deficient. So these are massive shocks in 223 00:12:20,200 --> 00:12:24,720 Speaker 1: addition to fires and climate change as a massive shock. 224 00:12:25,160 --> 00:12:28,680 Speaker 1: So what do you do when you have several black 225 00:12:28,800 --> 00:12:34,320 Speaker 1: swans flying around in the flock. You pause, you put 226 00:12:34,360 --> 00:12:37,719 Speaker 1: some cash on the side, you wait, you say, I 227 00:12:37,840 --> 00:12:41,640 Speaker 1: don't know, and therefore I've had a great run in 228 00:12:41,679 --> 00:12:45,760 Speaker 1: the stock market recovery. Now I need to pause, and 229 00:12:45,840 --> 00:12:49,280 Speaker 1: that's what we're doing when we redeploy and where remains 230 00:12:49,360 --> 00:12:52,640 Speaker 1: to be seen were open, but we're not committing to 231 00:12:52,760 --> 00:12:56,800 Speaker 1: that now. David, about thirty seconds left. What is what 232 00:12:56,840 --> 00:12:58,560 Speaker 1: do you think will be the next movement by this 233 00:12:58,600 --> 00:13:02,600 Speaker 1: foot to reserve? Well, I think that FAID doesn't do 234 00:13:02,679 --> 00:13:05,880 Speaker 1: anything until they get to the Jackson Whole meeting, and 235 00:13:05,920 --> 00:13:13,440 Speaker 1: then they have to soft gradualistically, very baby steps, try 236 00:13:13,679 --> 00:13:17,360 Speaker 1: to ease back on easing, a very difficult task or 237 00:13:17,400 --> 00:13:21,880 Speaker 1: any central bank, especially ours, under these circumstances. That's how 238 00:13:21,880 --> 00:13:24,520 Speaker 1: it looks to Bigful. All right, David, thank you so much. 239 00:13:24,600 --> 00:13:29,440 Speaker 1: We as always appreciate your time. Enjoy the cool weather, 240 00:13:29,480 --> 00:13:32,440 Speaker 1: hopefully out in ten thousand feet in Colorado. David Ko talk, 241 00:13:32,679 --> 00:13:35,480 Speaker 1: chairman and chief investment officer Cumbling Advisors again. They have 242 00:13:35,480 --> 00:13:37,920 Speaker 1: about three billion dollars in assets under management, and I 243 00:13:38,000 --> 00:13:41,320 Speaker 1: love Taylor, David. He tells you exactly what he's doing 244 00:13:41,400 --> 00:13:44,000 Speaker 1: with his cash, whether he's building cash, putting it to work. 245 00:13:44,040 --> 00:13:47,600 Speaker 1: It's really an interesting perspective, and he's one of the 246 00:13:47,640 --> 00:13:51,120 Speaker 1: guys that is the in the middle of all the 247 00:13:51,160 --> 00:13:54,240 Speaker 1: craziness of Muni bonds and the technicals and actually manages 248 00:13:54,280 --> 00:13:56,720 Speaker 1: to sit down and explain it to you and great 249 00:13:56,800 --> 00:14:03,040 Speaker 1: Muni portfolio as well. So that's certainly some fun memories. Well, 250 00:14:03,080 --> 00:14:05,360 Speaker 1: I'm gonna bring it. Ben Emmon's managing director of Global 251 00:14:05,400 --> 00:14:09,200 Speaker 1: macro Strategy at Medley Global Advisors, because I get his 252 00:14:09,840 --> 00:14:12,320 Speaker 1: research notes and the problem with his research notes is 253 00:14:12,360 --> 00:14:14,480 Speaker 1: he writes just too many of them, so whenever they 254 00:14:14,559 --> 00:14:16,880 Speaker 1: hit my inbox, I gotta stop. But I'm ever I'm 255 00:14:16,920 --> 00:14:19,240 Speaker 1: doing and read them because there's always good stuff in there. 256 00:14:19,280 --> 00:14:21,720 Speaker 1: But before we get the earnings and markets and all 257 00:14:21,720 --> 00:14:24,440 Speaker 1: that kind of stuff, I'm gonna talk space with Ben. Ben. 258 00:14:24,840 --> 00:14:27,640 Speaker 1: We saw sir Richard Branson go into space over the weekend. 259 00:14:28,680 --> 00:14:31,400 Speaker 1: Is this a business as as an investor? Do you 260 00:14:31,440 --> 00:14:35,480 Speaker 1: pay attention to that kind of stuff? Hi? Thanks for 261 00:14:35,520 --> 00:14:38,280 Speaker 1: having us, Yeah, you'll pay attention. You know, it was 262 00:14:38,320 --> 00:14:41,000 Speaker 1: obviously an amazing moments. I have to have this commercial 263 00:14:41,000 --> 00:14:44,120 Speaker 1: flights into space. You know what I think is really 264 00:14:44,240 --> 00:14:46,360 Speaker 1: good by Richard Branson is you know, he's the CEO 265 00:14:46,400 --> 00:14:48,280 Speaker 1: of the company, and he takes the risk right to 266 00:14:48,320 --> 00:14:51,080 Speaker 1: go up there because it's not without risk, and then 267 00:14:51,320 --> 00:14:54,000 Speaker 1: comes down back to Earth safety and says, I just 268 00:14:54,040 --> 00:14:56,680 Speaker 1: did the customer experience that just showed you live on 269 00:14:56,840 --> 00:15:00,120 Speaker 1: Twitter in the capsule what you can experience me go 270 00:15:00,200 --> 00:15:02,560 Speaker 1: up in space. Right, So you know that's a perfect 271 00:15:02,840 --> 00:15:06,640 Speaker 1: marketing strategy. But it does highlight how far we've gotten 272 00:15:06,680 --> 00:15:08,880 Speaker 1: with this technology. And he spoke to that this was 273 00:15:08,920 --> 00:15:11,360 Speaker 1: not he was dreaming about this like two thousand and 274 00:15:11,400 --> 00:15:13,360 Speaker 1: four because of seven so that they were working on 275 00:15:13,360 --> 00:15:16,840 Speaker 1: these plans to get themselves up in space. So I 276 00:15:17,280 --> 00:15:19,080 Speaker 1: guess what will happen in the future will go a 277 00:15:19,120 --> 00:15:21,120 Speaker 1: lot faster. Now we're gonna get a lot more flights 278 00:15:21,120 --> 00:15:23,760 Speaker 1: in the future. And if you look at that business, 279 00:15:23,960 --> 00:15:28,560 Speaker 1: you know they estimate that the total valuation of space economy. 280 00:15:28,600 --> 00:15:31,520 Speaker 1: So to speaks about how the fifty eight billion, which 281 00:15:31,560 --> 00:15:34,440 Speaker 1: is a lot of different elements to it, but you know, 282 00:15:34,480 --> 00:15:38,560 Speaker 1: as in space exploration and all kinds of industrial activity, 283 00:15:38,960 --> 00:15:43,640 Speaker 1: but that can become significantly larger with events every so yesterday, 284 00:15:43,680 --> 00:15:46,200 Speaker 1: So I think if I would put my mind into 285 00:15:46,280 --> 00:15:48,640 Speaker 1: Kathy Wood's mind, I'd say, like she's probably right, like 286 00:15:48,720 --> 00:15:52,400 Speaker 1: this is a a new industry and Richard Branson just 287 00:15:52,480 --> 00:15:55,360 Speaker 1: took this right up lead bound with a rocket right 288 00:15:55,360 --> 00:15:58,480 Speaker 1: there yesterday. You know, you want to talk about other 289 00:15:58,520 --> 00:16:01,000 Speaker 1: things that the market is certainly in attention to. Ben. 290 00:16:01,040 --> 00:16:03,000 Speaker 1: We love that you can go across a set for us, 291 00:16:03,040 --> 00:16:06,360 Speaker 1: from space tourism to bond yields, and I feel like 292 00:16:06,360 --> 00:16:09,440 Speaker 1: we're at that sweet spot where we were happy that 293 00:16:09,480 --> 00:16:12,640 Speaker 1: bond yields came down because of the way that that 294 00:16:12,680 --> 00:16:16,080 Speaker 1: can inflate some of the equity valuations, but it's also 295 00:16:16,160 --> 00:16:18,480 Speaker 1: given us a little bit of a worrying signal about 296 00:16:18,480 --> 00:16:21,320 Speaker 1: the future of economic growth. Where are you in the 297 00:16:21,480 --> 00:16:24,240 Speaker 1: sweet spot of what yields are telling you at this moment? 298 00:16:26,000 --> 00:16:29,000 Speaker 1: You're right, Taylor, there is you know something about the 299 00:16:29,040 --> 00:16:32,800 Speaker 1: climbing yields in an environment where economic data is really strong. 300 00:16:33,520 --> 00:16:36,600 Speaker 1: It doesn't coinciber one another. And it reminds me a 301 00:16:36,640 --> 00:16:39,720 Speaker 1: little bit of you know, prefinential crisis and the two 302 00:16:40,000 --> 00:16:43,000 Speaker 1: five beer. You know, really strong economy, strong housing market, 303 00:16:43,040 --> 00:16:46,640 Speaker 1: a lot of confidence, but yields with data decline. So 304 00:16:46,680 --> 00:16:48,200 Speaker 1: there is a bit of a dynamic on the one 305 00:16:48,240 --> 00:16:51,800 Speaker 1: hand of positioning that's that's causing that so people were 306 00:16:51,840 --> 00:16:55,120 Speaker 1: short and get wrong fooded is I think improved message 307 00:16:55,160 --> 00:16:57,640 Speaker 1: by theF fect just like back then, maybe someone more 308 00:16:57,640 --> 00:17:00,240 Speaker 1: predictable what we can expect it. There's a tapering, but 309 00:17:00,320 --> 00:17:03,600 Speaker 1: there's also something about the economy itself and be made 310 00:17:03,680 --> 00:17:06,480 Speaker 1: gotten to a point of of a form of overheating, 311 00:17:07,160 --> 00:17:09,160 Speaker 1: and the bond market is said like, you're gonna start 312 00:17:09,160 --> 00:17:11,800 Speaker 1: cooling off. So I come down on that debate that 313 00:17:11,960 --> 00:17:15,680 Speaker 1: yields probably this low reading because we're maybe maybe somewhat 314 00:17:15,680 --> 00:17:18,399 Speaker 1: of a cooling economy and that keeps you know, the 315 00:17:18,480 --> 00:17:22,320 Speaker 1: balances in the markets pretty solid. Right, we have low volatility, 316 00:17:22,880 --> 00:17:26,640 Speaker 1: stock market is doing fairly well. If anything, the rotation 317 00:17:26,720 --> 00:17:30,040 Speaker 1: back into the tech is also supporting other sectors. Ahead 318 00:17:30,080 --> 00:17:32,240 Speaker 1: of these earnings, I think low yields play into the 319 00:17:32,320 --> 00:17:34,760 Speaker 1: people's mind like, yes, the economy is not in the 320 00:17:34,800 --> 00:17:38,480 Speaker 1: recession of anything, it's just moderating against really strong earnings. 321 00:17:38,480 --> 00:17:41,000 Speaker 1: So I think it's it's good for markets. Ben We're 322 00:17:41,000 --> 00:17:44,560 Speaker 1: gonna have the large finance institutions begin to report earnings 323 00:17:44,640 --> 00:17:47,880 Speaker 1: this week. What are you looking for? Yeah, I think 324 00:17:47,880 --> 00:17:51,479 Speaker 1: that the banks itself have obviously a tremendous base effect 325 00:17:51,480 --> 00:17:53,600 Speaker 1: and they're earning some last year. You know, your your 326 00:17:53,600 --> 00:17:56,800 Speaker 1: colleague and the Martins has these great charts on that, 327 00:17:57,160 --> 00:17:59,000 Speaker 1: and I looked up yesterday. The year and year growth 328 00:17:59,080 --> 00:18:01,440 Speaker 1: rate is unbelievable. Will will see in the next few 329 00:18:01,520 --> 00:18:04,800 Speaker 1: days it could be could these percent of some of 330 00:18:04,840 --> 00:18:07,520 Speaker 1: these cases. What you, of course will look for is 331 00:18:07,560 --> 00:18:11,399 Speaker 1: that what is really the loan demands look like on 332 00:18:11,440 --> 00:18:14,320 Speaker 1: the ground, because now the economy is really attraction and 333 00:18:14,359 --> 00:18:17,360 Speaker 1: we're open. What's really changed there is that the kind 334 00:18:17,400 --> 00:18:19,439 Speaker 1: of the process and what they're planning to do with 335 00:18:19,440 --> 00:18:23,080 Speaker 1: all that excess liquidity they've taken up at the reserve, Yeah, 336 00:18:23,080 --> 00:18:25,159 Speaker 1: the reserves and sell the excess reserves as well as 337 00:18:25,200 --> 00:18:29,200 Speaker 1: the reverse repo facility. And then obviously what they've announced 338 00:18:29,240 --> 00:18:31,680 Speaker 1: after the cess test the buy back plans that do 339 00:18:32,080 --> 00:18:34,919 Speaker 1: metical markets. I think there's expectations you could tell today 340 00:18:34,960 --> 00:18:37,680 Speaker 1: from the price section that the banks will come out 341 00:18:37,720 --> 00:18:40,600 Speaker 1: not only with good earnings, but with intentions to really 342 00:18:40,640 --> 00:18:43,680 Speaker 1: further support the equity valuation. So I think banks will 343 00:18:43,720 --> 00:18:46,840 Speaker 1: do quite well in this period. Are those buy backs 344 00:18:46,840 --> 00:18:50,280 Speaker 1: boosting those valuations that you alluded to within the financial sector? 345 00:18:50,880 --> 00:18:52,960 Speaker 1: Is that broad based as well? Are we expecting to 346 00:18:53,040 --> 00:18:55,800 Speaker 1: hear in these second quarter earnings from CEO is a 347 00:18:55,840 --> 00:18:59,720 Speaker 1: lot of commentary about using this excess cash to buy 348 00:18:59,720 --> 00:19:03,280 Speaker 1: back shares. So the banks have a unique tail in 349 00:19:03,359 --> 00:19:06,240 Speaker 1: that sense, right, because you know, they basically got relief 350 00:19:06,880 --> 00:19:09,560 Speaker 1: from the Federal Reserve to start buying back shares after 351 00:19:09,680 --> 00:19:12,760 Speaker 1: a year of being excluded from that. Whereas the buy 352 00:19:12,840 --> 00:19:15,960 Speaker 1: back index itself, you have an SEP SMP buy back 353 00:19:16,040 --> 00:19:18,040 Speaker 1: in next that's now, by the way, game quite a 354 00:19:18,040 --> 00:19:20,520 Speaker 1: bit of value, but the buy back levels have been low, 355 00:19:21,119 --> 00:19:24,639 Speaker 1: so yes, it could be, you know, depending upon again, 356 00:19:24,680 --> 00:19:26,960 Speaker 1: this is a signal. I think maybe what people try 357 00:19:27,000 --> 00:19:29,760 Speaker 1: to connect with the strong economy and low yields is 358 00:19:29,800 --> 00:19:32,600 Speaker 1: this our earnings telling us that you know, a lot 359 00:19:32,600 --> 00:19:34,439 Speaker 1: of companies sit on a lot of cash, are not 360 00:19:34,480 --> 00:19:37,640 Speaker 1: going to deploy it then investment, but buy back shares 361 00:19:38,080 --> 00:19:40,080 Speaker 1: and then in that sense would not necessary to be 362 00:19:40,119 --> 00:19:43,080 Speaker 1: a good signal. So I think it's really the banks 363 00:19:43,119 --> 00:19:45,440 Speaker 1: that will take the lead there. Because they've been given 364 00:19:45,480 --> 00:19:48,800 Speaker 1: the lead, the other companies will see, right. I think 365 00:19:48,840 --> 00:19:50,679 Speaker 1: it's a there's a lot going on in the economy, 366 00:19:50,720 --> 00:19:52,919 Speaker 1: that's for sure. Hey, Ben, thanks so much for joining us. 367 00:19:52,920 --> 00:19:55,400 Speaker 1: We always appreciate chatting with you as well as your 368 00:19:55,480 --> 00:19:59,840 Speaker 1: research notes. Ben Emmon's Managing director Global macro Strategy at 369 00:20:00,040 --> 00:20:03,679 Speaker 1: Eddy Global Advisors, giving us his thoughts on these markets, 370 00:20:03,880 --> 00:20:06,920 Speaker 1: on space and on some of these bank earning's coming 371 00:20:06,960 --> 00:20:13,760 Speaker 1: up this week. What we've got markets once again, equity 372 00:20:13,800 --> 00:20:17,119 Speaker 1: markets setting all time highs. And that's despite the fact 373 00:20:17,240 --> 00:20:21,639 Speaker 1: that the COVID nineteen UH is still very much with 374 00:20:21,760 --> 00:20:24,800 Speaker 1: us on a global scale. Even within the confines of 375 00:20:24,800 --> 00:20:27,960 Speaker 1: the United States, there's there's large portions of this country 376 00:20:27,960 --> 00:20:30,840 Speaker 1: that are under vaccinated and again as a result, facing 377 00:20:31,119 --> 00:20:34,119 Speaker 1: some challenges in the delta variant. But the markets that 378 00:20:34,240 --> 00:20:36,480 Speaker 1: once was a thing for the markets, it doesn't appear 379 00:20:36,520 --> 00:20:39,240 Speaker 1: like it is as much anymore. Christina Hooper joins us. 380 00:20:39,240 --> 00:20:43,400 Speaker 1: This is chief global market strategist for Investco. UH. Why 381 00:20:43,400 --> 00:20:45,320 Speaker 1: do we like Christina because she's a very nice person 382 00:20:45,359 --> 00:20:48,520 Speaker 1: to have on She's very smart and Investco has one 383 00:20:48,560 --> 00:20:51,800 Speaker 1: point three trillion in assets under management, so she knows 384 00:20:51,920 --> 00:20:54,360 Speaker 1: where the money is going. Christina, thanks so much again 385 00:20:54,400 --> 00:20:57,480 Speaker 1: for joining us here. Again, how do you think about 386 00:20:57,600 --> 00:20:59,280 Speaker 1: I mean, you gots you just take us back you 387 00:20:59,320 --> 00:21:02,560 Speaker 1: know a year plus and the markets was the narrative 388 00:21:02,640 --> 00:21:07,879 Speaker 1: was completely driven by UH you know, virus trends and 389 00:21:08,080 --> 00:21:11,280 Speaker 1: and hospitalization rates. That was really moving the market. And 390 00:21:11,320 --> 00:21:15,120 Speaker 1: now even though we have vaccines, there's still some concerns 391 00:21:15,119 --> 00:21:19,359 Speaker 1: out there there. But the market just doesn't seem to care. Well, 392 00:21:19,440 --> 00:21:22,320 Speaker 1: the market, the stock market doesn't seem to care, right, 393 00:21:22,359 --> 00:21:25,520 Speaker 1: but it seems as though the ten year treasury yield, 394 00:21:25,560 --> 00:21:29,159 Speaker 1: the treasury market does seem to care. Now, I was 395 00:21:29,760 --> 00:21:33,159 Speaker 1: raised in this industry on the notion that quite often 396 00:21:33,600 --> 00:21:37,600 Speaker 1: the ten year treasury yield is a better indicator of 397 00:21:37,760 --> 00:21:41,520 Speaker 1: fear than anything we can find, like the vix in 398 00:21:41,600 --> 00:21:44,680 Speaker 1: the stock market. So this could be a scenario where 399 00:21:44,720 --> 00:21:50,160 Speaker 1: we have stocks um seeing that there is economic growth 400 00:21:50,320 --> 00:21:54,560 Speaker 1: that's quite strong, um, seeing very accommodative monetary policy and 401 00:21:54,640 --> 00:21:57,680 Speaker 1: reacting one way, and then we see the ten year 402 00:21:57,720 --> 00:22:00,920 Speaker 1: treasury seeing the other side of the coin. Right, Um, 403 00:22:01,080 --> 00:22:03,800 Speaker 1: the parts of the world that aren't well vaccinated, even 404 00:22:03,840 --> 00:22:07,120 Speaker 1: the pockets of America that aren't well vaccinated, and are 405 00:22:07,160 --> 00:22:10,720 Speaker 1: suggesting there are reasons to be concerned. Um. It's it's 406 00:22:10,960 --> 00:22:13,480 Speaker 1: arguably a little bit of diversification here in terms of 407 00:22:13,840 --> 00:22:17,439 Speaker 1: the different reactions in different parts of market. Christine, if 408 00:22:17,440 --> 00:22:21,920 Speaker 1: I could politely push back on that could you argue 409 00:22:22,000 --> 00:22:25,679 Speaker 1: that spreads are also telling us about the equity markets. 410 00:22:25,680 --> 00:22:28,320 Speaker 1: I'm looking at eighty five basis points on investment grade 411 00:22:28,320 --> 00:22:32,119 Speaker 1: over treasuries under to seventy on high yield over treasuries. 412 00:22:32,400 --> 00:22:35,000 Speaker 1: Spreads are telling me there's nothing to worry about. What 413 00:22:35,080 --> 00:22:38,800 Speaker 1: do you make of that? Well, I think that that 414 00:22:38,960 --> 00:22:44,640 Speaker 1: is arguably the overarching story, right that, Um, that what 415 00:22:44,720 --> 00:22:47,960 Speaker 1: we are going through right now is likely to be temporary. Um. 416 00:22:48,080 --> 00:22:51,119 Speaker 1: Last year, at this time, we did not have a 417 00:22:51,240 --> 00:22:55,080 Speaker 1: cure for COVID nineteen. We had no vaccine vaccine available, 418 00:22:55,359 --> 00:22:57,560 Speaker 1: and in fact, we were hearing from medical experts who 419 00:22:57,640 --> 00:23:01,040 Speaker 1: said that it was unlikely we get an effective vaccine 420 00:23:01,080 --> 00:23:05,160 Speaker 1: against a coronavirus anytime soon. Now fast forward a year 421 00:23:05,200 --> 00:23:07,800 Speaker 1: and the scenario is very different. Our biggest problem is 422 00:23:07,880 --> 00:23:11,719 Speaker 1: vaccine rollouts. We have effective vaccines, so we know that 423 00:23:11,760 --> 00:23:15,440 Speaker 1: the challenges we're going through now are likely very temporary 424 00:23:15,480 --> 00:23:20,040 Speaker 1: in nature. All right, So Christina earnings week is kicking 425 00:23:20,040 --> 00:23:24,440 Speaker 1: off this week with the big bank earnings here. Um. 426 00:23:24,520 --> 00:23:30,400 Speaker 1: What are you looking for, uh from earnings this quarter? Well? 427 00:23:31,119 --> 00:23:34,199 Speaker 1: I think we we very much expect a strong earning 428 00:23:34,280 --> 00:23:37,840 Speaker 1: season and that should come as no surprise. Um, so 429 00:23:37,920 --> 00:23:41,240 Speaker 1: what we really want to hear from is the guidance 430 00:23:41,440 --> 00:23:44,399 Speaker 1: and the future. UM. What can we expect because there 431 00:23:44,440 --> 00:23:47,040 Speaker 1: are of course concerns that maybe this is as good 432 00:23:47,080 --> 00:23:49,439 Speaker 1: as we're going to get, and so to hear that 433 00:23:49,520 --> 00:23:53,199 Speaker 1: guidance from companies in all different industries is going to 434 00:23:53,240 --> 00:23:56,280 Speaker 1: be very, very important in terms of giving a sense 435 00:23:56,560 --> 00:24:00,080 Speaker 1: of where the stock market goes from here. UM in 436 00:24:00,080 --> 00:24:02,959 Speaker 1: the back half of this year. Christina. One thing that 437 00:24:03,000 --> 00:24:05,199 Speaker 1: we love getting you on the program is because you 438 00:24:05,240 --> 00:24:08,640 Speaker 1: have global in your title. What is the headline risk 439 00:24:09,040 --> 00:24:13,360 Speaker 1: of investing in Chinese stocks? Given the regulatory crackdown, as 440 00:24:13,359 --> 00:24:15,439 Speaker 1: we spoke last week on TV, a stroke of a 441 00:24:15,480 --> 00:24:18,879 Speaker 1: pen Beijing changes the rules. How do you think about 442 00:24:18,880 --> 00:24:21,040 Speaker 1: that as sort of a risk to a China to 443 00:24:21,160 --> 00:24:27,600 Speaker 1: an e M portfolio. Well, certainly there are regulatory risks 444 00:24:27,640 --> 00:24:31,280 Speaker 1: in all corners of one's portfolio right now. There are 445 00:24:31,320 --> 00:24:35,119 Speaker 1: concerns that we could see greater regulation of technology in 446 00:24:35,160 --> 00:24:40,320 Speaker 1: the United States. So I think investors need to look 447 00:24:40,320 --> 00:24:43,920 Speaker 1: at their portfolio with uh an eye towards where there 448 00:24:43,920 --> 00:24:48,000 Speaker 1: could be potential regulatory changes, and of course that includes 449 00:24:48,080 --> 00:24:52,000 Speaker 1: what is happening in China. UM, and that would argue 450 00:24:52,040 --> 00:24:57,520 Speaker 1: for more diversification, more potentially UM, more exposure to other 451 00:24:57,600 --> 00:25:01,119 Speaker 1: parts of emerging markets right now. UM. But but but I 452 00:25:01,160 --> 00:25:04,359 Speaker 1: would say that we can't panic about this, UM. We 453 00:25:04,480 --> 00:25:07,400 Speaker 1: just need to follow it closely and again recognize that 454 00:25:07,440 --> 00:25:10,600 Speaker 1: there are regulatory risks in all different kinds of places, 455 00:25:10,800 --> 00:25:15,640 Speaker 1: including those who have UM crypto components to their portfolio. Christina, 456 00:25:15,680 --> 00:25:19,120 Speaker 1: where are you and the portfolio managers investgo right now? 457 00:25:19,119 --> 00:25:23,960 Speaker 1: Where are you guys doing your most work looking for opportunities? UM? Well, 458 00:25:24,200 --> 00:25:29,040 Speaker 1: certainly every every portfolio manager is looking at their investible 459 00:25:29,119 --> 00:25:32,400 Speaker 1: universe for opportunities. UM. What I would say is when 460 00:25:32,440 --> 00:25:34,880 Speaker 1: I take a step back and we're looking at it 461 00:25:34,960 --> 00:25:38,479 Speaker 1: more from a big picture perspective. UM. There are a 462 00:25:38,520 --> 00:25:42,520 Speaker 1: lot of very very interesting things going on right now, UM, 463 00:25:42,560 --> 00:25:47,080 Speaker 1: in particular areas like cyber security. UH. It's not getting 464 00:25:47,119 --> 00:25:50,000 Speaker 1: as much attention, I don't believe as it should. UM. 465 00:25:50,040 --> 00:25:54,560 Speaker 1: But this UM, this is an area that is UM 466 00:25:54,600 --> 00:25:59,560 Speaker 1: regularly cited by CEO before COVID nineteen as one of 467 00:25:59,760 --> 00:26:03,480 Speaker 1: the biggest concerns right cyber security, And so I would 468 00:26:03,520 --> 00:26:06,800 Speaker 1: anticipate that we're going to see more capex spending in general, 469 00:26:07,119 --> 00:26:12,040 Speaker 1: more capex spending on tech um more specifically and more 470 00:26:12,480 --> 00:26:16,520 Speaker 1: tech capex spending on cyber security. So that's just one 471 00:26:16,640 --> 00:26:19,560 Speaker 1: theme among many, but it's one that I think deserves 472 00:26:19,600 --> 00:26:21,840 Speaker 1: a lot of attention right now. It's very interesting. We 473 00:26:21,840 --> 00:26:24,600 Speaker 1: always love getting your thoughts, Christina who per chief Global 474 00:26:24,680 --> 00:26:28,160 Speaker 1: market strategist for Investo, getting your thoughts on markets again 475 00:26:28,200 --> 00:26:30,359 Speaker 1: a big earnings week, which will give us a real 476 00:26:30,960 --> 00:26:34,720 Speaker 1: view on the strength of corporate Americans. Christina was suggesting. 477 00:26:35,440 --> 00:26:37,879 Speaker 1: The focus also and maybe increasingly will be on that 478 00:26:37,960 --> 00:26:41,600 Speaker 1: forward looking guidance. Uh and we'll certainly have all of 479 00:26:41,600 --> 00:26:44,080 Speaker 1: that for you. This is Bloomberg. Thanks for listening to 480 00:26:44,080 --> 00:26:47,639 Speaker 1: the Bloomberg Markets podcast. You can subscribe and listen to 481 00:26:47,680 --> 00:26:51,840 Speaker 1: interviews with Apple Podcasts or whatever podcast platform you prefer. 482 00:26:52,240 --> 00:26:55,760 Speaker 1: I'm Matt Miller. I'm on Twitter at Matt Miller V 483 00:26:56,000 --> 00:26:59,080 Speaker 1: three pint on False Swhee. I'm on Twitter at pt Sweeney. 484 00:26:59,160 --> 00:27:01,800 Speaker 1: Before the podcast, you can always catch us worldwide at 485 00:27:01,800 --> 00:27:02,600 Speaker 1: Bloomberg Radio.