Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside
Speaker 1: my co host Matt Miller. Every business day, we bring
Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast
Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and
Speaker 1: at Bloomberg dot com slash podcast. Taylor, when I was
Speaker 1: a kid, it was about space was big. We had
Speaker 1: the Apollo program. Um, you know, we'd watch it from
Speaker 1: school in our classrooms. Launches and splashdowns in the middle
Speaker 1: of the ocean. We have people walking on the moon.
Speaker 1: It was really really cool time. Space is making a
Speaker 1: big comeback. You know, it's been kind of quiet since
Speaker 1: the Space Shuttle era, but it's making a big comeback.
Speaker 1: And now we've got billionaires going up seemingly weekly here
Speaker 1: into space or Richard Branson over the weekend. I think
Speaker 1: we've got Jeff Bezos and a matter of days and
Speaker 1: then Elon Musk is out there somewhere. I'm sure, um,
Speaker 1: let's get an over you what's going on in the
Speaker 1: world of space. Laura for Sick Space analysts and owner
Speaker 1: of Astroltical, author of rise of the space age millennial.
Speaker 1: She's also NASA subject matter expert for Planetary Science Missions. Laura,
Speaker 1: this is really a cool time for space travel and
Speaker 1: people that are really into space travel. UM, give us
Speaker 1: your sense, your takeaway on the importance of Sir Richard
Speaker 1: Branson's flight yesterday and the upcoming Jeff Bezos flight. What
Speaker 1: does it tell you about the future of space travel.
Speaker 1: This is really a great time because this is the
Speaker 1: emergence of true commercial private space flight. Where back in
Speaker 1: the two thousands we saw commercial space flight beginning with
Speaker 1: tourists going to the International Space Station, but through Russian
Speaker 1: rockets and Russian training, and now we're seeing purely commercial
Speaker 1: efforts where um, just now yesterday we saw Richard Branson
Speaker 1: and a crew flying on his own rocket through Virgin
Speaker 1: Chalactic and then, as you said, in about eight days,
Speaker 1: we're going to see Jeff Bezos and his crew fly
Speaker 1: on a Blue Origin rocket. And then later this year
Speaker 1: in September, we're gonna see a crew go to um
Speaker 1: orbital space and just orbit Earth for a few days
Speaker 1: through the inspiration formission with Space Sex. So lots of
Speaker 1: really great private spacelight going on, Laura, is it okay
Speaker 1: to ask sort of how you're thinking about the difference
Speaker 1: between the Virgin Galactic versus the Blue Origin. There's differences,
Speaker 1: I believe in one has a few pilots. One I
Speaker 1: think is more automated. Is there a difference in the
Speaker 1: way you're thinking about profitability for these companies or just frankly,
Speaker 1: the technicals of of going up there on on two
Speaker 1: or three different different ships that are operated differently. You're
Speaker 1: exactly right, there's a there's a big difference between the two.
Speaker 1: So one yesterday we saw was a carrier plane that
Speaker 1: released a space plane that launched with two pilots and
Speaker 1: four passengers. And the one that we're going to see
Speaker 1: in eight days Blue Origin is the traditional rocket with
Speaker 1: a capital on top and a capsule separates and lands
Speaker 1: with parachutes. So that is a difference in approach, and
Speaker 1: we're going to have to see how the market plays
Speaker 1: out on whether customers prefer one method or the other,
Speaker 1: or whether safety plays out one method or the other.
Speaker 1: But I think it's too early to say that one
Speaker 1: is better than the other. I think we're just gonna
Speaker 1: have to see, and I will go on both of them.
Speaker 1: I'm sure you and I would too. I'm not sure
Speaker 1: two or fifty thousand dollars a seat though, but for
Speaker 1: a lot of folks probably worth it. So, Laura, what's
Speaker 1: the what are like next steps do you think for
Speaker 1: the commercialization if you will, of space and space travel?
Speaker 1: What are there? I mean, these things are great, Uh,
Speaker 1: it's really interesting, but what are the next steps? We're
Speaker 1: seeing these two sub orbital carriers come online with paying
Speaker 1: passengers and also science. There's science has being done. There
Speaker 1: was a science experiment on the one yesterday, So there's
Speaker 1: some really great opportunities there for not just rich tourists,
Speaker 1: but also for research institutions, NASA and other governments that
Speaker 1: might be able to fly their science or do training
Speaker 1: for astronauts. There's also think I said, space X, who
Speaker 1: is going to be flying not just um, not just
Speaker 1: paying people to the International Space Station as they've been
Speaker 1: doing with the astronauts since last year, but also just
Speaker 1: in orbit around the Earth and a free flyer just
Speaker 1: doing a crew dragon fleece free flyer not even attached
Speaker 1: to the space station. But speaking of space stations, there
Speaker 1: are going to be private space stations coming on board
Speaker 1: in the next decade, so we should see companies like
Speaker 1: Axiom Space and others starting to put up space stations
Speaker 1: that will um work with the International Space Station and
Speaker 1: eventually replace the International Space Station. It's just incredible, I
Speaker 1: think when you think about how far we've come, Paul
Speaker 1: in the last even just decade in terms of commercial
Speaker 1: space flight, and and Laura, I mean it's interesting hearing
Speaker 1: some funny conversations earlier this morning that eventually we'll run
Speaker 1: out of billionaires who can afford this, and it'll want
Speaker 1: to be more mass market. How are you thinking about
Speaker 1: pricing and making it more affordable? What does that look
Speaker 1: like to you? Right so, right now, a trip to
Speaker 1: the International Space Station costs roughly fifty million dollars. There's
Speaker 1: not many people who can't afford that, but a trip
Speaker 1: to several will space is were affordable for for a
Speaker 1: larger group of people. Still not me, but as you said,
Speaker 1: roughly a quarter of a million dollars. We don't know
Speaker 1: the price that Blue Origin is going to sell their
Speaker 1: tickets for um, and that might be affordable for people
Speaker 1: who save up enough money or for people who are sponsored.
Speaker 1: There's a group called Space for Humanity and other groups
Speaker 1: that are trying to sponsor the quote unquote normal people
Speaker 1: who can fly on suborbital space flight. Um. And then
Speaker 1: as this technology become more and more common, just as
Speaker 1: other technologies started out with the wealthy and then we're
Speaker 1: brought downs in price to make it more accessible to
Speaker 1: the common person. The theory is that will happen with
Speaker 1: spaceflight as well. So Laura just want to get a
Speaker 1: sense here what I grew up again, It was NASA,
Speaker 1: It was the U. S. Government leading the way. My
Speaker 1: question now is where is NASA in the global space
Speaker 1: competitive race visa v. China, Russia. Where we as a
Speaker 1: country now as becomes you know, maybe some of the
Speaker 1: responsibility shifts from NASA to these commercial entities. NASA is
Speaker 1: very focused on its Artemis program right now, which is
Speaker 1: going to send the next the next man, and the
Speaker 1: first woman and the first person's color to the Moon.
Speaker 1: It is as soon as four and that's really exciting
Speaker 1: because there is a bit of a jew political competition
Speaker 1: there because the Chinese and the Russian partner to do
Speaker 1: a winner base as well. It's in a different time frame,
Speaker 1: about a decade later than NASA intends to. But NASA's
Speaker 1: partnering with countries all around the world something called the
Speaker 1: Artemis Accords where they partnered with twelve countries around the world. Um,
Speaker 1: it's gonna be a real international partnership there. It's not
Speaker 1: going to be like the Apollo program where it was
Speaker 1: mainly you focused on the United States. This is really
Speaker 1: going to be an international partnership. We even have a
Speaker 1: Canadian astronaut confirmed to fly with American astronaut on the
Speaker 1: Artemist mission around the Moon before the first woner landing
Speaker 1: in the Artemist three mission. So that's really exciting to
Speaker 1: see us finally returned back to the Moon. Laura, I'm
Speaker 1: going to get a lot of hate mail for this,
Speaker 1: but it's my job to ask, so I'm going to
Speaker 1: ask it anyways. I'm going to try to do this
Speaker 1: in the nicest way possible as a space analyst, what
Speaker 1: is the risk the headline risk around the carbon footprint.
Speaker 1: I mean, you think about all the focus on going
Speaker 1: green and protecting our planet and then you have a
Speaker 1: bunch of billionaires who are going into space for fun.
Speaker 1: Is there a risk of any backlash on wondering what
Speaker 1: this is doing to the environment. It's no more harmful
Speaker 1: to the environment than the other types of transportation that
Speaker 1: we use is a key that's a key point right there,
Speaker 1: right that we need to be responsible and how we
Speaker 1: develop our technology and improve our technology to be responsible
Speaker 1: stewards of Earth. And one thing that I would like
Speaker 1: to personally experience I've only heard from other astronauts is
Speaker 1: something called the open view effect where people who see
Speaker 1: the Earth from above, whether that's in orbit or in
Speaker 1: SubOrbit um, they come across a different perspective where they
Speaker 1: actually feel more environmentally connected to our planet. So that
Speaker 1: might be a way that changes people's minds and makes
Speaker 1: them more environmentally conscious by seeing our Earth as one
Speaker 1: fragile planet. Hey Laura, thanks so much for joining us,
Speaker 1: or really appreciate you coming on and sharing your thoughts.
Speaker 1: Law Force like space annalys and owner of Asterioltical, also
Speaker 1: rise of the Space age millennials. This is Bloomberg. You know.
Speaker 1: As I talked to Tom Keane, as I typically do,
Speaker 1: it's always a question of when do we get Tom
Speaker 1: into this market. He's in that triple leverage all cash
Speaker 1: fund and uh, he always feels like he's missed his opportunity.
Speaker 1: But here we are at all time highs again for
Speaker 1: the equity Indusseries is it time to raise cash? What
Speaker 1: do we do here? David ko Talk, chairman and chief
Speaker 1: investment officer Kumblin Advisors, joins us. I believe he's in
Speaker 1: Colorado today. Why would you be in Florida when you
Speaker 1: can be in Colorado in uh the summer. David, thanks
Speaker 1: so much for joining us here. Again, what do we
Speaker 1: tell our good friend Tom Keane about these equity markets? Well,
Speaker 1: thank you very much, fall and I gathered Taylor as
Speaker 1: with you, and it's very nice to chat with old
Speaker 1: friends from Summit County, Colorado, where nine thousand feet nice
Speaker 1: and you just announced Webber Grill and I would say,
Speaker 1: if Taylor and you can find your way to Colorado,
Speaker 1: I will cook you a steak on the deck on
Speaker 1: that Webb grilled sole. As for Tom Kane and what
Speaker 1: he should do with cash, I can't say, but I
Speaker 1: can tell you we have built a cash reserve here recently.
Speaker 1: We are not fully invested. Um. It's been a marvelous
Speaker 1: first quarter, much beyond anyone's expectations. And my grandfather, bless
Speaker 1: his memory, taught me you never get hurt taking some profits.
Speaker 1: So we took a part of the profits of the
Speaker 1: first quarter where we had achieved in six months what
Speaker 1: we thought we would achieve in the whole year, and
Speaker 1: we banked a little and are waiting for opportunity. The
Speaker 1: rest of the portfolios in the United States et F
Speaker 1: structured portfolio, the U S. E t F portfolio is
Speaker 1: heavily overweight. The health sector almost double market wait market
Speaker 1: wait for the if you look at the sectors is
Speaker 1: approximately four or so. We're about twenty eight, very broadly
Speaker 1: diversified within healthcare, devices, parmaceutical, biotech, the gamut structured with
Speaker 1: E t F, and we believe the pandemic is not
Speaker 1: over long haul Covid is with us for a while,
Speaker 1: maybe years, and the healthcare sector has a monumental task
Speaker 1: ahead of it and will step up and deliver results
Speaker 1: as best as it care. You know, David, we love
Speaker 1: getting you on this program more than just the opportunity
Speaker 1: to have you grill us some stakes. You mentioned you're
Speaker 1: not fully invested, and I am curious, what would it take.
Speaker 1: What is the opportunity? Is it a ten pullback? What
Speaker 1: is it that you would be willing to commit more cash? Well,
Speaker 1: I think there's several major issues about which there's uncertainty.
Speaker 1: Uncertainty means you can't put probabilities on that. Taylor. We
Speaker 1: don't know where this China initiative, which is anti US,
Speaker 1: anti capital markets, pulling I p o s, putting on restrictions,
Speaker 1: dealing with two hundred and fifty securities of various types
Speaker 1: that trade in the United States, is going to lead us.
Speaker 1: We have a capital market conflict between the United States
Speaker 1: and China, the two largest economies in the world number one.
Speaker 1: We don't know where that goes, but it can't be pretty. Second,
Speaker 1: we don't have herd immunity in the United States, and
Speaker 1: we have twenty five of the population that is rejecting science.
Speaker 1: Now there's a debate about science, no question about it,
Speaker 1: but there's also evidence. And when you look around, you
Speaker 1: see that the vaccination rollout is not work being completely
Speaker 1: as expected. You then you look at the rest of
Speaker 1: the world and you say, there's six point eight billion
Speaker 1: people out of seven point eight billions that have not
Speaker 1: had a vaccination at all. They're in places where public
Speaker 1: health systems are deficient. So these are massive shocks in
Speaker 1: addition to fires and climate change as a massive shock.
Speaker 1: So what do you do when you have several black
Speaker 1: swans flying around in the flock. You pause, you put
Speaker 1: some cash on the side, you wait, you say, I
Speaker 1: don't know, and therefore I've had a great run in
Speaker 1: the stock market recovery. Now I need to pause, and
Speaker 1: that's what we're doing when we redeploy and where remains
Speaker 1: to be seen were open, but we're not committing to
Speaker 1: that now. David, about thirty seconds left. What is what
Speaker 1: do you think will be the next movement by this
Speaker 1: foot to reserve? Well, I think that FAID doesn't do
Speaker 1: anything until they get to the Jackson Whole meeting, and
Speaker 1: then they have to soft gradualistically, very baby steps, try
Speaker 1: to ease back on easing, a very difficult task or
Speaker 1: any central bank, especially ours, under these circumstances. That's how
Speaker 1: it looks to Bigful. All right, David, thank you so much.
Speaker 1: We as always appreciate your time. Enjoy the cool weather,
Speaker 1: hopefully out in ten thousand feet in Colorado. David Ko talk,
Speaker 1: chairman and chief investment officer Cumbling Advisors again. They have
Speaker 1: about three billion dollars in assets under management, and I
Speaker 1: love Taylor, David. He tells you exactly what he's doing
Speaker 1: with his cash, whether he's building cash, putting it to work.
Speaker 1: It's really an interesting perspective, and he's one of the
Speaker 1: guys that is the in the middle of all the
Speaker 1: craziness of Muni bonds and the technicals and actually manages
Speaker 1: to sit down and explain it to you and great
Speaker 1: Muni portfolio as well. So that's certainly some fun memories. Well,
Speaker 1: I'm gonna bring it. Ben Emmon's managing director of Global
Speaker 1: macro Strategy at Medley Global Advisors, because I get his
Speaker 1: research notes and the problem with his research notes is
Speaker 1: he writes just too many of them, so whenever they
Speaker 1: hit my inbox, I gotta stop. But I'm ever I'm
Speaker 1: doing and read them because there's always good stuff in there.
Speaker 1: But before we get the earnings and markets and all
Speaker 1: that kind of stuff, I'm gonna talk space with Ben. Ben.
Speaker 1: We saw sir Richard Branson go into space over the weekend.
Speaker 1: Is this a business as as an investor? Do you
Speaker 1: pay attention to that kind of stuff? Hi? Thanks for
Speaker 1: having us, Yeah, you'll pay attention. You know, it was
Speaker 1: obviously an amazing moments. I have to have this commercial
Speaker 1: flights into space. You know what I think is really
Speaker 1: good by Richard Branson is you know, he's the CEO
Speaker 1: of the company, and he takes the risk right to
Speaker 1: go up there because it's not without risk, and then
Speaker 1: comes down back to Earth safety and says, I just
Speaker 1: did the customer experience that just showed you live on
Speaker 1: Twitter in the capsule what you can experience me go
Speaker 1: up in space. Right, So you know that's a perfect
Speaker 1: marketing strategy. But it does highlight how far we've gotten
Speaker 1: with this technology. And he spoke to that this was
Speaker 1: not he was dreaming about this like two thousand and
Speaker 1: four because of seven so that they were working on
Speaker 1: these plans to get themselves up in space. So I
Speaker 1: guess what will happen in the future will go a
Speaker 1: lot faster. Now we're gonna get a lot more flights
Speaker 1: in the future. And if you look at that business,
Speaker 1: you know they estimate that the total valuation of space economy.
Speaker 1: So to speaks about how the fifty eight billion, which
Speaker 1: is a lot of different elements to it, but you know,
Speaker 1: as in space exploration and all kinds of industrial activity,
Speaker 1: but that can become significantly larger with events every so yesterday,
Speaker 1: So I think if I would put my mind into
Speaker 1: Kathy Wood's mind, I'd say, like she's probably right, like
Speaker 1: this is a a new industry and Richard Branson just
Speaker 1: took this right up lead bound with a rocket right
Speaker 1: there yesterday. You know, you want to talk about other
Speaker 1: things that the market is certainly in attention to. Ben.
Speaker 1: We love that you can go across a set for us,
Speaker 1: from space tourism to bond yields, and I feel like
Speaker 1: we're at that sweet spot where we were happy that
Speaker 1: bond yields came down because of the way that that
Speaker 1: can inflate some of the equity valuations, but it's also
Speaker 1: given us a little bit of a worrying signal about
Speaker 1: the future of economic growth. Where are you in the
Speaker 1: sweet spot of what yields are telling you at this moment?
Speaker 1: You're right, Taylor, there is you know something about the
Speaker 1: climbing yields in an environment where economic data is really strong.
Speaker 1: It doesn't coinciber one another. And it reminds me a
Speaker 1: little bit of you know, prefinential crisis and the two
Speaker 1: five beer. You know, really strong economy, strong housing market,
Speaker 1: a lot of confidence, but yields with data decline. So
Speaker 1: there is a bit of a dynamic on the one
Speaker 1: hand of positioning that's that's causing that so people were
Speaker 1: short and get wrong fooded is I think improved message
Speaker 1: by theF fect just like back then, maybe someone more
Speaker 1: predictable what we can expect it. There's a tapering, but
Speaker 1: there's also something about the economy itself and be made
Speaker 1: gotten to a point of of a form of overheating,
Speaker 1: and the bond market is said like, you're gonna start
Speaker 1: cooling off. So I come down on that debate that
Speaker 1: yields probably this low reading because we're maybe maybe somewhat
Speaker 1: of a cooling economy and that keeps you know, the
Speaker 1: balances in the markets pretty solid. Right, we have low volatility,
Speaker 1: stock market is doing fairly well. If anything, the rotation
Speaker 1: back into the tech is also supporting other sectors. Ahead
Speaker 1: of these earnings, I think low yields play into the
Speaker 1: people's mind like, yes, the economy is not in the
Speaker 1: recession of anything, it's just moderating against really strong earnings.
Speaker 1: So I think it's it's good for markets. Ben We're
Speaker 1: gonna have the large finance institutions begin to report earnings
Speaker 1: this week. What are you looking for? Yeah, I think
Speaker 1: that the banks itself have obviously a tremendous base effect
Speaker 1: and they're earning some last year. You know, your your
Speaker 1: colleague and the Martins has these great charts on that,
Speaker 1: and I looked up yesterday. The year and year growth
Speaker 1: rate is unbelievable. Will will see in the next few
Speaker 1: days it could be could these percent of some of
Speaker 1: these cases. What you, of course will look for is
Speaker 1: that what is really the loan demands look like on
Speaker 1: the ground, because now the economy is really attraction and
Speaker 1: we're open. What's really changed there is that the kind
Speaker 1: of the process and what they're planning to do with
Speaker 1: all that excess liquidity they've taken up at the reserve, Yeah,
Speaker 1: the reserves and sell the excess reserves as well as
Speaker 1: the reverse repo facility. And then obviously what they've announced
Speaker 1: after the cess test the buy back plans that do
Speaker 1: metical markets. I think there's expectations you could tell today
Speaker 1: from the price section that the banks will come out
Speaker 1: not only with good earnings, but with intentions to really
Speaker 1: further support the equity valuation. So I think banks will
Speaker 1: do quite well in this period. Are those buy backs
Speaker 1: boosting those valuations that you alluded to within the financial sector?
Speaker 1: Is that broad based as well? Are we expecting to
Speaker 1: hear in these second quarter earnings from CEO is a
Speaker 1: lot of commentary about using this excess cash to buy
Speaker 1: back shares. So the banks have a unique tail in
Speaker 1: that sense, right, because you know, they basically got relief
Speaker 1: from the Federal Reserve to start buying back shares after
Speaker 1: a year of being excluded from that. Whereas the buy
Speaker 1: back index itself, you have an SEP SMP buy back
Speaker 1: in next that's now, by the way, game quite a
Speaker 1: bit of value, but the buy back levels have been low,
Speaker 1: so yes, it could be, you know, depending upon again,
Speaker 1: this is a signal. I think maybe what people try
Speaker 1: to connect with the strong economy and low yields is
Speaker 1: this our earnings telling us that you know, a lot
Speaker 1: of companies sit on a lot of cash, are not
Speaker 1: going to deploy it then investment, but buy back shares
Speaker 1: and then in that sense would not necessary to be
Speaker 1: a good signal. So I think it's really the banks
Speaker 1: that will take the lead there. Because they've been given
Speaker 1: the lead, the other companies will see, right. I think
Speaker 1: it's a there's a lot going on in the economy,
Speaker 1: that's for sure. Hey, Ben, thanks so much for joining us.
Speaker 1: We always appreciate chatting with you as well as your
Speaker 1: research notes. Ben Emmon's Managing director Global macro Strategy at
Speaker 1: Eddy Global Advisors, giving us his thoughts on these markets,
Speaker 1: on space and on some of these bank earning's coming
Speaker 1: up this week. What we've got markets once again, equity
Speaker 1: markets setting all time highs. And that's despite the fact
Speaker 1: that the COVID nineteen UH is still very much with
Speaker 1: us on a global scale. Even within the confines of
Speaker 1: the United States, there's there's large portions of this country
Speaker 1: that are under vaccinated and again as a result, facing
Speaker 1: some challenges in the delta variant. But the markets that
Speaker 1: once was a thing for the markets, it doesn't appear
Speaker 1: like it is as much anymore. Christina Hooper joins us.
Speaker 1: This is chief global market strategist for Investco. UH. Why
Speaker 1: do we like Christina because she's a very nice person
Speaker 1: to have on She's very smart and Investco has one
Speaker 1: point three trillion in assets under management, so she knows
Speaker 1: where the money is going. Christina, thanks so much again
Speaker 1: for joining us here. Again, how do you think about
Speaker 1: I mean, you gots you just take us back you
Speaker 1: know a year plus and the markets was the narrative
Speaker 1: was completely driven by UH you know, virus trends and
Speaker 1: and hospitalization rates. That was really moving the market. And
Speaker 1: now even though we have vaccines, there's still some concerns
Speaker 1: out there there. But the market just doesn't seem to care. Well,
Speaker 1: the market, the stock market doesn't seem to care, right,
Speaker 1: but it seems as though the ten year treasury yield,
Speaker 1: the treasury market does seem to care. Now, I was
Speaker 1: raised in this industry on the notion that quite often
Speaker 1: the ten year treasury yield is a better indicator of
Speaker 1: fear than anything we can find, like the vix in
Speaker 1: the stock market. So this could be a scenario where
Speaker 1: we have stocks um seeing that there is economic growth
Speaker 1: that's quite strong, um, seeing very accommodative monetary policy and
Speaker 1: reacting one way, and then we see the ten year
Speaker 1: treasury seeing the other side of the coin. Right, Um,
Speaker 1: the parts of the world that aren't well vaccinated, even
Speaker 1: the pockets of America that aren't well vaccinated, and are
Speaker 1: suggesting there are reasons to be concerned. Um. It's it's
Speaker 1: arguably a little bit of diversification here in terms of
Speaker 1: the different reactions in different parts of market. Christine, if
Speaker 1: I could politely push back on that could you argue
Speaker 1: that spreads are also telling us about the equity markets.
Speaker 1: I'm looking at eighty five basis points on investment grade
Speaker 1: over treasuries under to seventy on high yield over treasuries.
Speaker 1: Spreads are telling me there's nothing to worry about. What
Speaker 1: do you make of that? Well, I think that that
Speaker 1: is arguably the overarching story, right that, Um, that what
Speaker 1: we are going through right now is likely to be temporary. Um.
Speaker 1: Last year, at this time, we did not have a
Speaker 1: cure for COVID nineteen. We had no vaccine vaccine available,
Speaker 1: and in fact, we were hearing from medical experts who
Speaker 1: said that it was unlikely we get an effective vaccine
Speaker 1: against a coronavirus anytime soon. Now fast forward a year
Speaker 1: and the scenario is very different. Our biggest problem is
Speaker 1: vaccine rollouts. We have effective vaccines, so we know that
Speaker 1: the challenges we're going through now are likely very temporary
Speaker 1: in nature. All right, So Christina earnings week is kicking
Speaker 1: off this week with the big bank earnings here. Um.
Speaker 1: What are you looking for, uh from earnings this quarter? Well?
Speaker 1: I think we we very much expect a strong earning
Speaker 1: season and that should come as no surprise. Um, so
Speaker 1: what we really want to hear from is the guidance
Speaker 1: and the future. UM. What can we expect because there
Speaker 1: are of course concerns that maybe this is as good
Speaker 1: as we're going to get, and so to hear that
Speaker 1: guidance from companies in all different industries is going to
Speaker 1: be very, very important in terms of giving a sense
Speaker 1: of where the stock market goes from here. UM in
Speaker 1: the back half of this year. Christina. One thing that
Speaker 1: we love getting you on the program is because you
Speaker 1: have global in your title. What is the headline risk
Speaker 1: of investing in Chinese stocks? Given the regulatory crackdown, as
Speaker 1: we spoke last week on TV, a stroke of a
Speaker 1: pen Beijing changes the rules. How do you think about
Speaker 1: that as sort of a risk to a China to
Speaker 1: an e M portfolio. Well, certainly there are regulatory risks
Speaker 1: in all corners of one's portfolio right now. There are
Speaker 1: concerns that we could see greater regulation of technology in
Speaker 1: the United States. So I think investors need to look
Speaker 1: at their portfolio with uh an eye towards where there
Speaker 1: could be potential regulatory changes, and of course that includes
Speaker 1: what is happening in China. UM, and that would argue
Speaker 1: for more diversification, more potentially UM, more exposure to other
Speaker 1: parts of emerging markets right now. UM. But but but I
Speaker 1: would say that we can't panic about this, UM. We
Speaker 1: just need to follow it closely and again recognize that
Speaker 1: there are regulatory risks in all different kinds of places,
Speaker 1: including those who have UM crypto components to their portfolio. Christina,
Speaker 1: where are you and the portfolio managers investgo right now?
Speaker 1: Where are you guys doing your most work looking for opportunities? UM? Well,
Speaker 1: certainly every every portfolio manager is looking at their investible
Speaker 1: universe for opportunities. UM. What I would say is when
Speaker 1: I take a step back and we're looking at it
Speaker 1: more from a big picture perspective. UM. There are a
Speaker 1: lot of very very interesting things going on right now, UM,
Speaker 1: in particular areas like cyber security. UH. It's not getting
Speaker 1: as much attention, I don't believe as it should. UM.
Speaker 1: But this UM, this is an area that is UM
Speaker 1: regularly cited by CEO before COVID nineteen as one of
Speaker 1: the biggest concerns right cyber security, And so I would
Speaker 1: anticipate that we're going to see more capex spending in general,
Speaker 1: more capex spending on tech um more specifically and more
Speaker 1: tech capex spending on cyber security. So that's just one
Speaker 1: theme among many, but it's one that I think deserves
Speaker 1: a lot of attention right now. It's very interesting. We
Speaker 1: always love getting your thoughts, Christina who per chief Global
Speaker 1: market strategist for Investo, getting your thoughts on markets again
Speaker 1: a big earnings week, which will give us a real
Speaker 1: view on the strength of corporate Americans. Christina was suggesting.
Speaker 1: The focus also and maybe increasingly will be on that
Speaker 1: forward looking guidance. Uh and we'll certainly have all of
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