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
00:00:15,640 --> 00:00:18,479
Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and

6
00:00:18,480 --> 00:00:21,720
Speaker 1: at Bloomberg dot com slash podcast Listen. We have a

7
00:00:21,760 --> 00:00:24,560
Speaker 1: reopening com economy here in the United States, and we're

8
00:00:24,560 --> 00:00:26,520
Speaker 1: seeing it in lots of different areas of the economy.

9
00:00:26,960 --> 00:00:28,639
Speaker 1: One area that I think is going to be a

10
00:00:28,720 --> 00:00:32,120
Speaker 1: real challenge, however, is commercial real estate. And I just

11
00:00:32,159 --> 00:00:34,280
Speaker 1: speak about here what I'm seeing here in New York City.

12
00:00:34,520 --> 00:00:36,960
Speaker 1: Here we are on Lexington Avenue between fifty eight and

13
00:00:37,040 --> 00:00:40,160
Speaker 1: fifty ninth Street at Bloomberg and all of the retail space,

14
00:00:40,440 --> 00:00:44,519
Speaker 1: with the exception once tiny little Swiss Chocolate uh shop,

15
00:00:44,680 --> 00:00:46,879
Speaker 1: all of it is vacant, and all of it pre

16
00:00:46,960 --> 00:00:50,160
Speaker 1: pandemic was actually filled. So let's bring a Noah Miller,

17
00:00:50,280 --> 00:00:54,200
Speaker 1: vice president of Guelt Financial, a national real estate investment firm.

18
00:00:54,560 --> 00:00:57,920
Speaker 1: No I'd love to get your thoughts about, particularly in

19
00:00:58,000 --> 00:01:00,319
Speaker 1: some of the larger urban areas that really have been

20
00:01:00,440 --> 00:01:03,320
Speaker 1: hit with commercial vacancies, give us a sense of where

21
00:01:03,320 --> 00:01:07,039
Speaker 1: that market is right now and kind of what's the outlook. Sure, well,

22
00:01:07,080 --> 00:01:10,039
Speaker 1: thanks so much for having me, guys. I appreciate being here. Um.

23
00:01:10,160 --> 00:01:13,959
Speaker 1: You know, the the urban retail market is very interesting

24
00:01:14,040 --> 00:01:16,280
Speaker 1: right now, especially when you compare it to the suburban

25
00:01:16,280 --> 00:01:18,520
Speaker 1: retail market. You know, a lot of people like to

26
00:01:18,520 --> 00:01:20,880
Speaker 1: talk about the urban retail market and and and how

27
00:01:20,920 --> 00:01:22,880
Speaker 1: there's a lot of vacancy and a lot of uncertainty,

28
00:01:22,880 --> 00:01:24,720
Speaker 1: and it's it's funny, it's it's it's a whole different

29
00:01:24,720 --> 00:01:27,240
Speaker 1: world in the suburban market. In the suburban market, you're

30
00:01:27,240 --> 00:01:31,680
Speaker 1: actually seeing small retail strip centers do fairly well. Um.

31
00:01:31,720 --> 00:01:33,240
Speaker 1: You know a lot of these centers who have the

32
00:01:33,280 --> 00:01:36,280
Speaker 1: experiential real estate, you know, the dog rooms, the coffee shop,

33
00:01:36,319 --> 00:01:38,640
Speaker 1: the pizza place, the now salons, they've stayed full dooring

34
00:01:38,720 --> 00:01:42,800
Speaker 1: COVID and we're actually seeing an increased appetite from investors

35
00:01:43,000 --> 00:01:45,960
Speaker 1: who who demand that. Um. So it's funny, Like I said,

36
00:01:46,080 --> 00:01:48,040
Speaker 1: every time I tune it on in I hear retail

37
00:01:48,080 --> 00:01:49,960
Speaker 1: is dead. But really they're just talking about urban. When

38
00:01:50,000 --> 00:01:52,160
Speaker 1: you go to a suburban I actually think that sector

39
00:01:52,200 --> 00:01:54,560
Speaker 1: is gonna be pretty good for the next couple of years.

40
00:01:55,120 --> 00:01:58,280
Speaker 1: It's pretty amazing. You know. I'm back here in New York,

41
00:01:58,360 --> 00:02:01,279
Speaker 1: just visiting. I live in berlin Um for the past

42
00:02:01,320 --> 00:02:05,040
Speaker 1: five years, and obviously I haven't been here for for

43
00:02:05,080 --> 00:02:08,200
Speaker 1: a while because of the lockdown. It couldn't travel. I

44
00:02:08,280 --> 00:02:12,120
Speaker 1: walked down Lexington Avenue and all of the stores are shut. Now.

45
00:02:12,120 --> 00:02:15,720
Speaker 1: I expect that if I'm in like rural Ohio after

46
00:02:16,040 --> 00:02:19,960
Speaker 1: a massive recession, But you don't expect that in when

47
00:02:20,040 --> 00:02:22,280
Speaker 1: you're visiting the capital of the world, right, I mean

48
00:02:22,280 --> 00:02:27,040
Speaker 1: New York City is um, you know, is it? So?

49
00:02:27,560 --> 00:02:31,560
Speaker 1: How bad has this hit the urban areas? How bad

50
00:02:31,600 --> 00:02:34,840
Speaker 1: has this hit the densely populated cities around the country

51
00:02:34,880 --> 00:02:37,839
Speaker 1: and around the world. Well, well they've been hit very hard.

52
00:02:37,880 --> 00:02:40,680
Speaker 1: But but that's because there was such a massive exodus.

53
00:02:40,720 --> 00:02:42,600
Speaker 1: I mean, think about how many people left New York

54
00:02:42,680 --> 00:02:45,440
Speaker 1: during COVID and came to Florida, to Texas. Same with

55
00:02:45,480 --> 00:02:48,040
Speaker 1: San Francisco. And that's why I'm saying. You know, when

56
00:02:48,040 --> 00:02:50,400
Speaker 1: when you look at just the urban cities, you're only

57
00:02:50,440 --> 00:02:52,840
Speaker 1: looking at a piece of what happened. Um. For all

58
00:02:52,880 --> 00:02:56,000
Speaker 1: the suburban areas where everyone's flocked to, uh, those are

59
00:02:56,040 --> 00:02:59,040
Speaker 1: are faring pretty well. And not just in by the way,

60
00:02:59,040 --> 00:03:01,200
Speaker 1: in retail, but also an office. I mean you're seeing

61
00:03:01,200 --> 00:03:03,920
Speaker 1: a lot of empty office building high rises in Manhattan

62
00:03:04,080 --> 00:03:06,519
Speaker 1: and San Francisco, But if you go to suburban markets

63
00:03:06,520 --> 00:03:09,440
Speaker 1: across the country in the office space, those are doing well.

64
00:03:09,520 --> 00:03:12,120
Speaker 1: This is the small accounting firms, the small law firms

65
00:03:12,200 --> 00:03:14,560
Speaker 1: who have five, ten, fifteen employees. You know, they're not

66
00:03:14,600 --> 00:03:16,440
Speaker 1: set up to work from home. That they need to

67
00:03:16,440 --> 00:03:19,400
Speaker 1: be in the office, they need the interaction and and

68
00:03:19,440 --> 00:03:21,720
Speaker 1: again it really is tells two cities almost like comparing

69
00:03:21,840 --> 00:03:24,799
Speaker 1: urban and suburbans. So what's your focus at GULT Financial?

70
00:03:25,160 --> 00:03:28,639
Speaker 1: What do you uh specialize in there? What can people

71
00:03:28,680 --> 00:03:31,640
Speaker 1: do with you? So what we do is we really

72
00:03:31,680 --> 00:03:34,680
Speaker 1: specialize in providing in equity in the sub five million

73
00:03:34,680 --> 00:03:37,880
Speaker 1: dollars space. So there's a lot of owner operators who

74
00:03:37,880 --> 00:03:40,760
Speaker 1: are these smaller main street owner operators and mom and

75
00:03:40,800 --> 00:03:43,480
Speaker 1: pops who have a really hard time putting together the

76
00:03:43,480 --> 00:03:46,760
Speaker 1: capital stack. If you're an institution, it's easy, everyone's throwing

77
00:03:46,800 --> 00:03:50,000
Speaker 1: money at you, thanks equity investors. But for the mom

78
00:03:50,040 --> 00:03:52,320
Speaker 1: and pops, you know, those are the hustler investors, the

79
00:03:52,320 --> 00:03:54,880
Speaker 1: American dream investors, and most people shy away from them,

80
00:03:54,960 --> 00:03:57,960
Speaker 1: so we provide capital to those types of investors across

81
00:03:57,960 --> 00:04:02,840
Speaker 1: the country. So what are we seeing in terms of

82
00:04:02,880 --> 00:04:05,520
Speaker 1: investor appetite for real estate here? You know, I would

83
00:04:05,520 --> 00:04:08,119
Speaker 1: think a lot of folks who have a higher risk

84
00:04:08,160 --> 00:04:11,680
Speaker 1: profile be saying this is a once in a one

85
00:04:12,120 --> 00:04:16,320
Speaker 1: year opportunity to get into real estate at lower prices.

86
00:04:16,360 --> 00:04:18,560
Speaker 1: Are you seeing that? In fact, when you talk to

87
00:04:18,600 --> 00:04:22,200
Speaker 1: your investors, we're seeing a big appetite for real estate.

88
00:04:22,279 --> 00:04:24,640
Speaker 1: But I wouldn't say it's it's it's really because it's

89
00:04:24,640 --> 00:04:27,280
Speaker 1: a once in a hundred year uh phenomenon. I mean,

90
00:04:27,320 --> 00:04:30,880
Speaker 1: the truth is, real estate prices haven't dropped considerably since

91
00:04:30,880 --> 00:04:34,040
Speaker 1: COVID started. Um. Interest rates are still really low, so

92
00:04:34,480 --> 00:04:37,200
Speaker 1: debt is available. So if deaths available and interest rates

93
00:04:37,200 --> 00:04:38,640
Speaker 1: are low, people are going to buy real estate and

94
00:04:38,680 --> 00:04:41,120
Speaker 1: pay a premium for it. I think what's happen is

95
00:04:41,120 --> 00:04:43,520
Speaker 1: you're seeing the mom and pops get more involved, and

96
00:04:43,520 --> 00:04:44,880
Speaker 1: those are the ones we're helping out, as well as

97
00:04:44,880 --> 00:04:47,440
Speaker 1: you're seeing millennials get more involved and want to enter

98
00:04:47,480 --> 00:04:50,599
Speaker 1: the real estate space, especially in ways that they couldn't

99
00:04:50,600 --> 00:04:51,839
Speaker 1: do a couple of years ago. I think a couple

100
00:04:51,839 --> 00:04:53,760
Speaker 1: of years ago, you needed a million dollars to invest

101
00:04:53,800 --> 00:04:56,200
Speaker 1: in real estate or a couple hundred thousands. Today we

102
00:04:56,279 --> 00:04:57,960
Speaker 1: have a lot of investors who invest with us with

103
00:04:58,000 --> 00:05:00,320
Speaker 1: as little as five or ten dollars. It's a good point.

104
00:05:01,040 --> 00:05:04,159
Speaker 1: It's a good point in real properties, which they couldn't

105
00:05:04,160 --> 00:05:05,880
Speaker 1: do a couple of years ago. So that's a growing

106
00:05:05,960 --> 00:05:08,039
Speaker 1: space and the demand of the in the in the

107
00:05:08,080 --> 00:05:10,160
Speaker 1: real estate world. It's not just the money, right, because

108
00:05:10,200 --> 00:05:14,159
Speaker 1: it's the admin, it's um, the search. And I was

109
00:05:14,200 --> 00:05:17,039
Speaker 1: talking to a friend of mine who actually is a

110
00:05:17,080 --> 00:05:20,760
Speaker 1: concert promoter yesterday but also has been investing in real estate,

111
00:05:20,839 --> 00:05:22,839
Speaker 1: and it's it's such a hassle if you have to

112
00:05:22,880 --> 00:05:24,880
Speaker 1: do all that stuff yourself. So if you can find

113
00:05:24,920 --> 00:05:26,560
Speaker 1: someone else to do it, and you think it's a

114
00:05:26,600 --> 00:05:30,560
Speaker 1: good asset class um, then I guess it's not just

115
00:05:30,720 --> 00:05:33,280
Speaker 1: money you're saving, but a lot of time and stress

116
00:05:33,400 --> 00:05:37,080
Speaker 1: as well. What kind of growth are you expecting. We're

117
00:05:37,080 --> 00:05:39,640
Speaker 1: expecting a lot of growth. We're a second generation company

118
00:05:39,640 --> 00:05:41,960
Speaker 1: that the company has actually started thirty years ago by

119
00:05:41,960 --> 00:05:44,320
Speaker 1: my father. I've been involved for a couple of years

120
00:05:44,360 --> 00:05:46,960
Speaker 1: now after leading the institutional world, and and our goal

121
00:05:47,040 --> 00:05:49,200
Speaker 1: is to double this year and then double again next

122
00:05:49,279 --> 00:05:52,479
Speaker 1: year and again with the increased appetite from the younger

123
00:05:52,520 --> 00:05:54,800
Speaker 1: generations as well as the mom and pops wanting to

124
00:05:54,839 --> 00:05:59,040
Speaker 1: get involved. We see that happening. So no, I'd love

125
00:05:59,040 --> 00:06:02,080
Speaker 1: to get your thoughts on retail. Um. You know, commercial

126
00:06:02,240 --> 00:06:05,320
Speaker 1: real estate for the retail industry. We've seen even prior

127
00:06:05,360 --> 00:06:08,479
Speaker 1: to the pandemic, a lot of store closings. Really, you know,

128
00:06:08,520 --> 00:06:10,720
Speaker 1: the footprint of the Macy's of the world on a

129
00:06:10,839 --> 00:06:14,359
Speaker 1: national basis declining and um, you know, there's more and

130
00:06:14,400 --> 00:06:17,080
Speaker 1: more people shop online. It seems like that whole process

131
00:06:17,400 --> 00:06:21,279
Speaker 1: has really been accelerated by the pandemic. How do you

132
00:06:21,360 --> 00:06:24,159
Speaker 1: view kind of commercial real estate for in the retail space?

133
00:06:25,200 --> 00:06:27,680
Speaker 1: The retail is interesting and again it's really it's that's

134
00:06:27,720 --> 00:06:30,440
Speaker 1: also two stories because you have clearly had the big

135
00:06:30,440 --> 00:06:32,960
Speaker 1: department stores that are losing footprint. You know a lot

136
00:06:33,000 --> 00:06:36,200
Speaker 1: of um, individuals who weren't used to shopping on Amazon

137
00:06:36,279 --> 00:06:38,520
Speaker 1: or into car prior to COVID are now doing and

138
00:06:38,560 --> 00:06:40,919
Speaker 1: they're probably gonna stick around. So you know, the question

139
00:06:40,960 --> 00:06:43,280
Speaker 1: of malls is really still uncertain. A lot of these

140
00:06:43,279 --> 00:06:46,400
Speaker 1: malls are going through um, you know, changes where they're

141
00:06:46,400 --> 00:06:48,800
Speaker 1: tearing some of them down, they're making them more kind

142
00:06:48,800 --> 00:06:51,000
Speaker 1: of you know, your experiences, so that I still think

143
00:06:51,080 --> 00:06:52,760
Speaker 1: is a little bit unseen. I think, you know, some

144
00:06:52,839 --> 00:06:54,880
Speaker 1: of the Simon malls will be okay, just because they're

145
00:06:54,880 --> 00:06:57,200
Speaker 1: sending so much money and really driving traffic. But a

146
00:06:57,240 --> 00:06:59,560
Speaker 1: lot of the more local malls, and you know, the

147
00:06:59,600 --> 00:07:01,600
Speaker 1: second markets, at the end of the day, I think

148
00:07:01,600 --> 00:07:04,719
Speaker 1: they'll probably be torn down and made into almost warehouse

149
00:07:04,760 --> 00:07:07,640
Speaker 1: states for the last mile for companies like Amazon. But

150
00:07:07,680 --> 00:07:10,960
Speaker 1: again going back to these small strip centers that you know,

151
00:07:11,040 --> 00:07:12,920
Speaker 1: you can't replace a dog groom, you can't replace the

152
00:07:13,000 --> 00:07:15,760
Speaker 1: now salan, those those those retail bays will be okay,

153
00:07:15,760 --> 00:07:17,960
Speaker 1: and I think that's where we're seeing more appetite from

154
00:07:17,960 --> 00:07:21,840
Speaker 1: our investors rather than the big store, um big box retail. Well,

155
00:07:21,840 --> 00:07:24,880
Speaker 1: if they or they tournament, as you said, experienced centers,

156
00:07:24,920 --> 00:07:29,080
Speaker 1: if there's a carding track or a water park or

157
00:07:29,200 --> 00:07:32,560
Speaker 1: I don't know, I can't think of great experiences. But

158
00:07:33,880 --> 00:07:35,520
Speaker 1: what about one of those places where it's like you

159
00:07:35,600 --> 00:07:37,680
Speaker 1: jump out of a plane, but you're still just hovering

160
00:07:37,720 --> 00:07:40,440
Speaker 1: there over a fan. What do you call that? Yeah, listen,

161
00:07:40,480 --> 00:07:43,200
Speaker 1: maybe maybe maybe Jeff Bezos will use some of these

162
00:07:43,200 --> 00:07:46,680
Speaker 1: malls as a launching center for you never know. Yeah,

163
00:07:46,680 --> 00:07:50,440
Speaker 1: well apparently it was a clean engine rocket rocket engine,

164
00:07:50,480 --> 00:07:53,120
Speaker 1: so um, you know, we clarified that with detail, it

165
00:07:53,120 --> 00:07:56,520
Speaker 1: would be okay. Hey, it's been great talking to you

166
00:07:56,680 --> 00:07:59,480
Speaker 1: know h It's always fascinating talk about real estate and

167
00:07:59,560 --> 00:08:03,520
Speaker 1: finding is to invest in. I think is um is

168
00:08:03,560 --> 00:08:06,720
Speaker 1: really interesting without having to do all the legwork yourself.

169
00:08:06,880 --> 00:08:09,200
Speaker 1: And I think it's something that we talked about. You know,

170
00:08:09,240 --> 00:08:12,840
Speaker 1: the young people are getting in the accumulation phase right

171
00:08:12,880 --> 00:08:15,280
Speaker 1: now in terms of stocks and and maybe they want

172
00:08:15,280 --> 00:08:17,320
Speaker 1: to get involved in real estate as well, so they

173
00:08:17,320 --> 00:08:19,640
Speaker 1: can do that with Guelt Financial. Noah Miller is the

174
00:08:19,760 --> 00:08:24,480
Speaker 1: vice president there. All right, we're gonna talk carbs. Let's

175
00:08:24,520 --> 00:08:26,920
Speaker 1: do it. It's not just carburetors. Because I know this

176
00:08:26,960 --> 00:08:29,160
Speaker 1: because I talked to Tom Tomlinson yesterday as a president

177
00:08:29,200 --> 00:08:33,880
Speaker 1: and CEO of Holly, which is an iconic, I mean

178
00:08:34,080 --> 00:08:37,800
Speaker 1: truly iconic auto parts maker. If you've ever tuned up,

179
00:08:37,920 --> 00:08:43,080
Speaker 1: souped up um uh an old motor, you probably used

180
00:08:43,120 --> 00:08:45,160
Speaker 1: parts from Holly. And now they're trading on the New

181
00:08:45,240 --> 00:08:48,800
Speaker 1: York Stock Exchange. They combined with Back yesterday and I

182
00:08:48,800 --> 00:08:52,640
Speaker 1: think the ticker is h L L Y Tom h

183
00:08:52,800 --> 00:08:55,320
Speaker 1: talk to me about new products, because I'm always on

184
00:08:55,360 --> 00:08:57,880
Speaker 1: about the Holly carbs. I think they're probably the most famous,

185
00:08:57,960 --> 00:09:00,520
Speaker 1: either Holly or Edelbrock, probably the most fam as carbs

186
00:09:00,559 --> 00:09:06,840
Speaker 1: in the world. But you're making much newer components for tuning. Absolutely.

187
00:09:06,920 --> 00:09:11,480
Speaker 1: So Holly e f I Electronic fuel injection is a product,

188
00:09:11,720 --> 00:09:14,480
Speaker 1: um you know, that we introduced actually about a dozen

189
00:09:14,559 --> 00:09:18,560
Speaker 1: years ago. It's done very well, been very popular. We've

190
00:09:18,600 --> 00:09:21,959
Speaker 1: got products within the Holly FI line that actually allow

191
00:09:22,040 --> 00:09:25,200
Speaker 1: you to convert a carbureted car very easily and cost

192
00:09:25,240 --> 00:09:29,840
Speaker 1: effectively through electronic fuel injections. So while we still sell carburetors,

193
00:09:30,040 --> 00:09:32,000
Speaker 1: um you know, we're happy to upgrade people to e

194
00:09:32,160 --> 00:09:37,000
Speaker 1: f I, but we're building out a product uh strategy

195
00:09:37,280 --> 00:09:41,360
Speaker 1: and portfolio that provides for um, you know, a wide

196
00:09:41,559 --> 00:09:46,960
Speaker 1: range of products exhaust products, ignission products, intake manifolds. UM

197
00:09:47,040 --> 00:09:50,120
Speaker 1: you know, we branched out, just got our uh dipped

198
00:09:50,120 --> 00:09:53,200
Speaker 1: our toe in the waters of suspension products. So um

199
00:09:53,240 --> 00:09:55,120
Speaker 1: you know, we we there's a lot of room here

200
00:09:55,240 --> 00:09:59,080
Speaker 1: for us to grow by adding categories. So before we

201
00:09:59,080 --> 00:10:00,720
Speaker 1: get into the new prin and I do want to

202
00:10:00,760 --> 00:10:03,000
Speaker 1: because obviously we're kind of standing in front of a

203
00:10:03,000 --> 00:10:07,640
Speaker 1: revolution here. What's the difference would you say between you

204
00:10:07,679 --> 00:10:09,720
Speaker 1: and your main competitor. I mean people say Holly carbs

205
00:10:09,720 --> 00:10:14,440
Speaker 1: have lower gas mileage, smoother acceleration than Aedelbrock carbs, but

206
00:10:14,480 --> 00:10:16,560
Speaker 1: each has its own kind of quirks. Is it the

207
00:10:16,600 --> 00:10:22,000
Speaker 1: application that matters? Well, I mean, from from our perspective,

208
00:10:22,080 --> 00:10:25,160
Speaker 1: one of the things that's unique about the Holly carburetors,

209
00:10:25,160 --> 00:10:29,680
Speaker 1: if UM is really the modular design which gives you know,

210
00:10:29,720 --> 00:10:33,120
Speaker 1: the racer and the performance enthusiast a lot of flexibility

211
00:10:33,160 --> 00:10:36,000
Speaker 1: and how to tune that carburetor. And then when you

212
00:10:36,000 --> 00:10:39,040
Speaker 1: think about it from a modern standpoint, we have a uh,

213
00:10:39,080 --> 00:10:41,320
Speaker 1: you know, good sized part of our business all around

214
00:10:41,720 --> 00:10:45,360
Speaker 1: electronic tuning. So, um, you know, this would be your

215
00:10:45,400 --> 00:10:48,120
Speaker 1: late model car. Um. You know, you maybe you add

216
00:10:48,160 --> 00:10:50,760
Speaker 1: some exhaust, cold air intake, whatever the case may be.

217
00:10:51,480 --> 00:10:55,000
Speaker 1: You know, none of that stuff really helps uh performance

218
00:10:55,120 --> 00:10:59,120
Speaker 1: until you, uh, you know, tune the motor for the

219
00:10:59,160 --> 00:11:02,600
Speaker 1: additional are in fuel that you can put through. UM.

220
00:11:02,679 --> 00:11:08,079
Speaker 1: So again, UM, so you can you can go a

221
00:11:08,120 --> 00:11:09,719
Speaker 1: little bit more in depth and do a little bit

222
00:11:09,720 --> 00:11:13,040
Speaker 1: more customizing. Well, you know, I'm probably about to buy

223
00:11:13,080 --> 00:11:17,720
Speaker 1: my last big displacement V eight. I doubt after the

224
00:11:17,800 --> 00:11:20,160
Speaker 1: next car, I'm going to get anything over six leaders

225
00:11:20,200 --> 00:11:22,240
Speaker 1: in the V eight, So and I might have to

226
00:11:22,240 --> 00:11:25,120
Speaker 1: buy an electric car if my wife has her way.

227
00:11:25,280 --> 00:11:29,040
Speaker 1: What do you do when people switched to battery power? Well,

228
00:11:29,080 --> 00:11:32,680
Speaker 1: we are charged up about the emerging opportunity on the

229
00:11:32,720 --> 00:11:36,360
Speaker 1: electric side. I've been daily driving the Tesla Model three

230
00:11:36,360 --> 00:11:39,240
Speaker 1: now for a couple of years. Um. I just actually

231
00:11:39,320 --> 00:11:44,560
Speaker 1: I reserved a Tesla models plaid last year and just

232
00:11:44,640 --> 00:11:46,960
Speaker 1: got the email from Tesla yesterday that it will be

233
00:11:46,960 --> 00:11:52,000
Speaker 1: delivered this month. We're actively developing products around electric and

234
00:11:52,040 --> 00:11:54,920
Speaker 1: then one of the things that consumers are very interested

235
00:11:54,960 --> 00:11:59,480
Speaker 1: in is electric powertrain conversions on you know, whether it

236
00:11:59,559 --> 00:12:01,880
Speaker 1: be a class asset or even some of these you

237
00:12:01,880 --> 00:12:06,560
Speaker 1: know modern ice uh cars. So, um, you know, we're

238
00:12:06,640 --> 00:12:09,520
Speaker 1: we're all about the enthusiast and focus that focused on

239
00:12:09,600 --> 00:12:12,080
Speaker 1: providing them products that will allow them to continue to

240
00:12:12,080 --> 00:12:15,160
Speaker 1: pursue modification no matter which way they go. Ay, time

241
00:12:15,240 --> 00:12:17,199
Speaker 1: stroke Cookie thirty seconds. I'd love to get your thoughts

242
00:12:17,200 --> 00:12:22,079
Speaker 1: on going public via s back. So from our perspective,

243
00:12:22,120 --> 00:12:24,360
Speaker 1: it was a natural time for us to to be

244
00:12:24,440 --> 00:12:27,160
Speaker 1: out in the market looking for capital Historically we've done

245
00:12:27,200 --> 00:12:30,920
Speaker 1: that through private equity sponsors. We got familiar with the

246
00:12:30,960 --> 00:12:34,040
Speaker 1: spack vehicle. You know, it looked like a very efficient

247
00:12:34,120 --> 00:12:38,160
Speaker 1: way for us to go public. And also our partner

248
00:12:38,200 --> 00:12:41,680
Speaker 1: on the back side, UM has a lot of expertise

249
00:12:41,920 --> 00:12:44,520
Speaker 1: and you know, we we think that can help ease

250
00:12:44,559 --> 00:12:48,320
Speaker 1: our transition into life as a public company, so specifically,

251
00:12:48,720 --> 00:12:52,079
Speaker 1: you know, knowledge of operating public companies. Uh. They also

252
00:12:52,160 --> 00:12:54,840
Speaker 1: have a lot of expertise on the digital side, which

253
00:12:54,880 --> 00:12:58,040
Speaker 1: is important for our consumer engagement. So I mean it's

254
00:12:58,040 --> 00:13:01,000
Speaker 1: been a great approach for us, and and um, you

255
00:13:01,040 --> 00:13:04,079
Speaker 1: know we're now uh you know, arguably no longer a

256
00:13:04,120 --> 00:13:08,520
Speaker 1: spack although maybe that's how we got public. Um, we're

257
00:13:08,520 --> 00:13:10,800
Speaker 1: you know, we're just back to Holly, you know, company

258
00:13:10,840 --> 00:13:14,760
Speaker 1: with a very long, rich history, iconic brands, uh, growth

259
00:13:15,040 --> 00:13:19,520
Speaker 1: and you know grade margins and free cash flows. So, UM,

260
00:13:19,559 --> 00:13:22,120
Speaker 1: I guess that's how i'd sum it up. Tim Great,

261
00:13:22,400 --> 00:13:26,120
Speaker 1: Tom great talking to you. Um, obviously I care a

262
00:13:26,160 --> 00:13:29,960
Speaker 1: lot Tom. Tomlinson their CEO of Holly, and they're now

263
00:13:29,960 --> 00:13:35,000
Speaker 1: traded under ticker h l L wil Let's get over

264
00:13:35,040 --> 00:13:37,880
Speaker 1: to Mo Hagmen right now. He's the chief operating officer

265
00:13:38,040 --> 00:13:42,160
Speaker 1: of Investco Investment Solutions. We're gonna get back to the markets. Um,

266
00:13:42,200 --> 00:13:45,040
Speaker 1: As we saw MOE yesterday, a big sell off. Actually

267
00:13:45,040 --> 00:13:48,280
Speaker 1: since Thursday, I guess we saw more than three percent

268
00:13:48,360 --> 00:13:51,680
Speaker 1: lopped off the SMP five hundred, and today we're seeing

269
00:13:51,800 --> 00:13:53,679
Speaker 1: a little bit of a bounce back. Is it just

270
00:13:54,160 --> 00:13:57,840
Speaker 1: all about by the dip or is there some you know,

271
00:13:57,920 --> 00:14:00,839
Speaker 1: other reason are we are we today excited about corporate

272
00:14:00,880 --> 00:14:03,080
Speaker 1: earnings whereas yesterday we were just so bummed about the

273
00:14:03,120 --> 00:14:07,080
Speaker 1: delta variant. Well, good morning and thanks for having me. Well,

274
00:14:07,120 --> 00:14:08,599
Speaker 1: I think, you know, if we start with just a

275
00:14:08,679 --> 00:14:12,400
Speaker 1: macro backdrop, Um, what we look at is leading economic

276
00:14:12,400 --> 00:14:15,160
Speaker 1: indicators and risk sentiment in the market. And it's hard

277
00:14:15,200 --> 00:14:17,719
Speaker 1: to argue that the macro backdrop is still not very

278
00:14:17,760 --> 00:14:21,560
Speaker 1: supportive of equities and other risk assets. But to your point,

279
00:14:21,720 --> 00:14:24,160
Speaker 1: we are seeing a little bit of a change in sentiment,

280
00:14:24,360 --> 00:14:28,840
Speaker 1: and I think that's related to some decelerating and growth expectations. Uh.

281
00:14:29,000 --> 00:14:31,160
Speaker 1: Of course, there's also the fear of the delta variant,

282
00:14:31,160 --> 00:14:36,840
Speaker 1: which has some people worried about style lockdowns. Um, So

283
00:14:36,920 --> 00:14:39,280
Speaker 1: that's really I think what's driving some of the market action.

284
00:14:39,440 --> 00:14:42,680
Speaker 1: In our view, some of this is probably related also

285
00:14:42,720 --> 00:14:45,120
Speaker 1: to rates, right, So the bond markets are a good

286
00:14:45,120 --> 00:14:47,800
Speaker 1: place to start when you're thinking about the equity market.

287
00:14:48,160 --> 00:14:51,440
Speaker 1: Generally bond markets lead equities, and what we've been seeing

288
00:14:51,560 --> 00:14:54,440
Speaker 1: is the yield curve flattening and long rates really coming

289
00:14:54,440 --> 00:14:58,080
Speaker 1: down significantly, which again kind of puts pressure on the

290
00:14:58,360 --> 00:15:00,960
Speaker 1: cyclical stocks and some of the inflation trade that we've

291
00:15:01,000 --> 00:15:05,320
Speaker 1: seen outperformed for many, many months. So Mom, you know,

292
00:15:05,400 --> 00:15:07,520
Speaker 1: it's interesting here we have the volatility that Matt was

293
00:15:07,560 --> 00:15:09,240
Speaker 1: to speak about over the last couple of days, but

294
00:15:09,280 --> 00:15:12,720
Speaker 1: there's also been that discussion point of you know, do

295
00:15:12,800 --> 00:15:16,640
Speaker 1: I stick with the big growth names, the Amazons, the Apples,

296
00:15:16,640 --> 00:15:19,080
Speaker 1: and the Netflix also reporting after the clothes tonight that

297
00:15:19,120 --> 00:15:21,400
Speaker 1: have been so good to me really since the financial crisis?

298
00:15:21,600 --> 00:15:24,560
Speaker 1: Or uh, do I make that rotation play on a

299
00:15:24,640 --> 00:15:28,800
Speaker 1: reopening economy, think about banks and cyclical areas such as energy.

300
00:15:28,960 --> 00:15:30,560
Speaker 1: Where are you, guys in investor, how do you think

301
00:15:30,600 --> 00:15:36,560
Speaker 1: about that outlook? Sure? So post the presidential election and

302
00:15:36,640 --> 00:15:40,239
Speaker 1: for most of the year, we have been very much positioned,

303
00:15:40,680 --> 00:15:43,520
Speaker 1: uh towards kind of the more cyclical parts of the market.

304
00:15:43,600 --> 00:15:46,320
Speaker 1: So we've maintained a higher risk part posture to the

305
00:15:46,320 --> 00:15:49,680
Speaker 1: benchmark have been overweight equities and risky credit. But then

306
00:15:49,720 --> 00:15:52,960
Speaker 1: within the equity market, to your point, uh, focused on

307
00:15:53,000 --> 00:15:59,119
Speaker 1: things like financials, energy, small caps, uh, economically sensitive sectors

308
00:15:59,200 --> 00:16:02,480
Speaker 1: and companies. What we've seen with rates I think is

309
00:16:02,560 --> 00:16:05,960
Speaker 1: really renewing this conversation and debate around growth versus value,

310
00:16:06,360 --> 00:16:09,040
Speaker 1: and we have seen defensives outperformed. I think, you know,

311
00:16:09,040 --> 00:16:11,920
Speaker 1: today is an interesting day where we see kind of

312
00:16:11,960 --> 00:16:13,800
Speaker 1: a little bit of a bounce back on on kind

313
00:16:13,800 --> 00:16:16,760
Speaker 1: of the cyclical names, while we're also seeing declining rates,

314
00:16:16,760 --> 00:16:20,680
Speaker 1: which is interesting. That's generally not the uh normal way

315
00:16:21,000 --> 00:16:24,960
Speaker 1: um uh you know markets behave when rates are you know, rallying,

316
00:16:25,000 --> 00:16:28,800
Speaker 1: but then obviously low volatility and quality is not outperforming.

317
00:16:29,960 --> 00:16:34,120
Speaker 1: What would you say, um, people should go for right now?

318
00:16:34,160 --> 00:16:39,120
Speaker 1: In terms of hedges, I noticed yesterday puts UM outweighed

319
00:16:40,040 --> 00:16:42,280
Speaker 1: calls by two and a half times, and that's the

320
00:16:42,480 --> 00:16:46,240
Speaker 1: biggest ratio that we've seen in I think least twelve months.

321
00:16:46,280 --> 00:16:50,240
Speaker 1: So everybody's hedging UM or maybe they're just making a

322
00:16:50,240 --> 00:16:53,960
Speaker 1: bet that we hit the top and we're going down. Yeah. Look,

323
00:16:54,000 --> 00:16:56,760
Speaker 1: so I don't think there's UM at least we're not

324
00:16:56,840 --> 00:17:00,280
Speaker 1: overly concerned with some of the volatility recently, and and

325
00:17:00,320 --> 00:17:02,960
Speaker 1: really the macro backdrop is still very supportive of equities.

326
00:17:03,000 --> 00:17:06,240
Speaker 1: So when we think about asset allocation, we're really thinking

327
00:17:06,240 --> 00:17:10,159
Speaker 1: about the mix between equities and bonds and alternatives. And

328
00:17:10,240 --> 00:17:13,080
Speaker 1: you know, we still maintain a slight overweight to equities

329
00:17:13,119 --> 00:17:16,439
Speaker 1: and a slight over overweight to risk your credit UM

330
00:17:16,480 --> 00:17:19,280
Speaker 1: really thinking through some of the risks to the market

331
00:17:19,320 --> 00:17:22,480
Speaker 1: when I think about what we're seeing from a headline perspective,

332
00:17:22,560 --> 00:17:27,040
Speaker 1: obviously the UM economic growth picture, and some concerns about

333
00:17:27,040 --> 00:17:30,840
Speaker 1: growth maybe slowing down, but you know that's expected, right close,

334
00:17:30,960 --> 00:17:33,680
Speaker 1: growth should slow down. We've we've been growing at you know,

335
00:17:33,760 --> 00:17:37,280
Speaker 1: nominal eight percent uh in the normal kind of growth

336
00:17:37,320 --> 00:17:40,800
Speaker 1: rate that we'd expect. Poster recovery is probably something that

337
00:17:40,880 --> 00:17:44,160
Speaker 1: we we're experiencing for you know, ten plus years after

338
00:17:44,160 --> 00:17:48,080
Speaker 1: the global financial crisis, so three or four percent growth. Well,

339
00:17:48,119 --> 00:17:50,159
Speaker 1: how are you guys thinking about emerging markets? A lot

340
00:17:50,200 --> 00:17:52,760
Speaker 1: of folks say, you know, gosh, with these yields so low,

341
00:17:52,800 --> 00:17:55,000
Speaker 1: I gotta really go out on the risk profile here

342
00:17:55,400 --> 00:17:57,879
Speaker 1: in search for yield, and that may take me to

343
00:17:57,960 --> 00:18:01,400
Speaker 1: emerging markets. How do you guys think about that. From

344
00:18:01,440 --> 00:18:06,240
Speaker 1: a valuation standpoint, emerging market equities UH look more favorable

345
00:18:06,240 --> 00:18:11,160
Speaker 1: than domestic equities or international developed equities, but again that's

346
00:18:11,160 --> 00:18:15,000
Speaker 1: really UM, you know, risk tolerance driven. So from a

347
00:18:15,040 --> 00:18:18,600
Speaker 1: global allocation standpoint right now, we do maintain a slight

348
00:18:18,680 --> 00:18:23,880
Speaker 1: overweight to international UH, specifically emerging markets, again because we've

349
00:18:23,880 --> 00:18:28,840
Speaker 1: positioned really towards more risks on post the presidential election

350
00:18:28,960 --> 00:18:32,359
Speaker 1: and through most of the year. Now that said UM,

351
00:18:32,359 --> 00:18:36,080
Speaker 1: from a risk management standpoint is some of the UM

352
00:18:36,480 --> 00:18:41,160
Speaker 1: run up in those themes and those sectors allow us

353
00:18:41,200 --> 00:18:43,800
Speaker 1: to kind of reduce those overweights. So we've actually been

354
00:18:43,840 --> 00:18:47,520
Speaker 1: reducing some of that overweight to international equities as well

355
00:18:47,560 --> 00:18:51,360
Speaker 1: as some of the developed world outside the US. Are

356
00:18:51,600 --> 00:18:53,840
Speaker 1: aren't we going to see a lag in terms of

357
00:18:53,880 --> 00:18:57,479
Speaker 1: their reopening? I mean, you know, the US seems like

358
00:18:58,280 --> 00:19:01,000
Speaker 1: we're past the pandemic, and I know I'm sitting here

359
00:19:01,000 --> 00:19:03,520
Speaker 1: in New York where everyone's vaccinated, and it's probably not

360
00:19:03,560 --> 00:19:07,159
Speaker 1: the same in Springfield, Missouri. But UM, in terms of

361
00:19:07,880 --> 00:19:12,560
Speaker 1: Europe and the UK, even though they've selled celebrated Freedom Day,

362
00:19:12,600 --> 00:19:16,560
Speaker 1: they still are pretty locked down, and so aren't we

363
00:19:16,560 --> 00:19:21,720
Speaker 1: gonna see a big reopening bounce there later on possibly

364
00:19:22,040 --> 00:19:25,359
Speaker 1: and you know there's some risk to that. You know,

365
00:19:25,400 --> 00:19:30,240
Speaker 1: the variant and some of the flare ups we've seen globally, UM,

366
00:19:30,480 --> 00:19:35,800
Speaker 1: have the market a little bit concerned about style lockdowns?

367
00:19:35,840 --> 00:19:39,440
Speaker 1: I don't think that's very likely. UM. We should see,

368
00:19:40,000 --> 00:19:44,120
Speaker 1: UM some of this reopening move more to the developed

369
00:19:44,119 --> 00:19:46,200
Speaker 1: world and also the emerging markets which are a little

370
00:19:46,240 --> 00:19:49,920
Speaker 1: bit further behind in terms of vaccinations. UM. So that's

371
00:19:49,960 --> 00:19:53,480
Speaker 1: still very positive for the themes that have worked for

372
00:19:53,600 --> 00:19:56,480
Speaker 1: most of the year, with the exception of the last

373
00:19:56,520 --> 00:20:01,600
Speaker 1: few months. Alright, So MO is the risk in your

374
00:20:01,600 --> 00:20:06,160
Speaker 1: outlook here? Simply that FED chairman j Pal may make

375
00:20:06,440 --> 00:20:10,520
Speaker 1: a mistake as it relates to tapering and eventually moving rates.

376
00:20:12,040 --> 00:20:13,800
Speaker 1: So I would say there's three things right. That is

377
00:20:13,840 --> 00:20:18,679
Speaker 1: absolutely one of them. Right, So, UM, you know, equity markets,

378
00:20:18,720 --> 00:20:21,320
Speaker 1: bowl markets don't really die based on age, they die

379
00:20:21,359 --> 00:20:25,160
Speaker 1: because of a policy mistake. I also think that the variant,

380
00:20:25,240 --> 00:20:28,760
Speaker 1: you know, I think we've um I thought about the

381
00:20:28,800 --> 00:20:33,520
Speaker 1: probability of a significant lockdown to be low, but that

382
00:20:33,680 --> 00:20:35,520
Speaker 1: is still a risk. So I would say that's the

383
00:20:35,600 --> 00:20:39,360
Speaker 1: number two risk. And then lastly, if growth does decelerate

384
00:20:39,440 --> 00:20:42,240
Speaker 1: and then you know it really takes a turn for

385
00:20:42,320 --> 00:20:45,520
Speaker 1: the worst. You know, if earnings start to disappoint, if

386
00:20:45,560 --> 00:20:48,360
Speaker 1: we start to see some of the leading indicators start

387
00:20:48,400 --> 00:20:51,680
Speaker 1: to come down and below expectations, I would say that's

388
00:20:51,680 --> 00:20:54,600
Speaker 1: also a risk of the market. Well, great, talking to you, greats,

389
00:20:54,600 --> 00:20:57,160
Speaker 1: get your insight. Thanks very much for bringing us back

390
00:20:57,200 --> 00:21:01,800
Speaker 1: to the markets. Let's bring in Laura Forstick right now,

391
00:21:01,840 --> 00:21:05,960
Speaker 1: space analysts and owner of Astroltical. She's also the author

392
00:21:06,040 --> 00:21:10,720
Speaker 1: of Rise of the Space Age. Millennials and Laura, I mean,

393
00:21:11,840 --> 00:21:14,640
Speaker 1: talk to us about what we're seeing here. Clearly, Jeff

394
00:21:14,680 --> 00:21:19,119
Speaker 1: Bezos is not a millennial, nor is Elon Musk or

395
00:21:19,400 --> 00:21:24,040
Speaker 1: Richard Branson by any means. But these guys are driving

396
00:21:24,280 --> 00:21:28,840
Speaker 1: a totally new era in space exploration. That's right. What

397
00:21:28,920 --> 00:21:32,119
Speaker 1: they're doing is inspiring millennials and Generation Z, which I

398
00:21:32,160 --> 00:21:35,240
Speaker 1: believe Oliver Damon, one of the astronauts today on Blue Origin,

399
00:21:35,560 --> 00:21:37,840
Speaker 1: is a member of And so if you go back

400
00:21:37,840 --> 00:21:40,880
Speaker 1: in history and you think of the Apollo Lunar landings

401
00:21:40,920 --> 00:21:45,480
Speaker 1: back in the nineteen seventies, that inspired whole generations. But

402
00:21:45,760 --> 00:21:48,880
Speaker 1: for millennials and generations the the you know people, they're

403
00:21:49,160 --> 00:21:51,919
Speaker 1: you know, young kids all the way through about age

404
00:21:51,960 --> 00:21:54,720
Speaker 1: forty I'm talking about. They are mostly inspired by this

405
00:21:55,200 --> 00:21:59,840
Speaker 1: seneration of entrepreneurs and new space quote unquote companies like

406
00:22:00,320 --> 00:22:03,879
Speaker 1: Elon Musk, SpaceX, Jeff Uses his Blue Origin and Richard

407
00:22:03,920 --> 00:22:07,160
Speaker 1: Branson's Virgin Galactic and all the great things that we're

408
00:22:07,200 --> 00:22:10,239
Speaker 1: doing right now with commercial spaceflight. Yeah, Laura, that's kind

409
00:22:10,240 --> 00:22:11,560
Speaker 1: of where we wanted to go. I mean, you know,

410
00:22:11,560 --> 00:22:14,280
Speaker 1: when I grew up in the ear of NASA and

411
00:22:14,800 --> 00:22:18,600
Speaker 1: you know the Apollo missions, it was primarily about science.

412
00:22:19,359 --> 00:22:23,520
Speaker 1: Talk to us now about what some commercial applications or

413
00:22:24,000 --> 00:22:27,679
Speaker 1: commercial uses of space and space travel. What do you

414
00:22:27,680 --> 00:22:30,320
Speaker 1: think the future is for some of these folks that

415
00:22:30,400 --> 00:22:35,119
Speaker 1: are in fact on on a private scale commercializing space. Yeah, well,

416
00:22:35,160 --> 00:22:37,200
Speaker 1: a lot of it still is science. There's some really

417
00:22:37,200 --> 00:22:40,480
Speaker 1: great suborbital science that can spend so research and development,

418
00:22:40,760 --> 00:22:44,639
Speaker 1: both for just science and also for commercial companies, and

419
00:22:44,720 --> 00:22:47,920
Speaker 1: NASA also wants to train astronauts on these suborbital craft

420
00:22:47,960 --> 00:22:50,280
Speaker 1: as well. There's a lot of reasons. But of course

421
00:22:50,320 --> 00:22:53,720
Speaker 1: what we heard today, those screams of joy and celebration

422
00:22:53,800 --> 00:22:56,560
Speaker 1: as they were in space, it's just an inspiration. It's

423
00:22:56,560 --> 00:22:59,920
Speaker 1: a way to get people to look at planet Earth differently,

424
00:23:00,000 --> 00:23:01,560
Speaker 1: and to look at the way that we interact with

425
00:23:01,600 --> 00:23:04,480
Speaker 1: our universe differently, floating around in microgravity, seeing the cover

426
00:23:04,640 --> 00:23:07,520
Speaker 1: cho the Earth and the sin atmosphere, and the lack

427
00:23:07,600 --> 00:23:10,399
Speaker 1: of borders other than geographic borders. I mean, that's the

428
00:23:10,560 --> 00:23:13,400
Speaker 1: way to really change the perspective of how we view

429
00:23:13,400 --> 00:23:16,200
Speaker 1: our planet. So I noticed the tourists are only going

430
00:23:16,280 --> 00:23:18,160
Speaker 1: up to the Carmen line, maybe a little over, maybe

431
00:23:18,160 --> 00:23:22,400
Speaker 1: a little under. Um Uh. Is it just the cost

432
00:23:23,000 --> 00:23:24,960
Speaker 1: that limits them? Because if I went up there, I'd

433
00:23:25,000 --> 00:23:27,440
Speaker 1: want to go in orbit, I'd want to do a spacewalk.

434
00:23:27,520 --> 00:23:29,399
Speaker 1: I'd probably want to land on the dark side of

435
00:23:29,400 --> 00:23:32,040
Speaker 1: the Moon and play some pink Floyd. Is it? Is

436
00:23:32,040 --> 00:23:35,840
Speaker 1: it a massive cost difference between you know, sixty five

437
00:23:36,000 --> 00:23:40,840
Speaker 1: miles up and one loop around. Yes, you can go

438
00:23:40,880 --> 00:23:43,280
Speaker 1: to orbit right now. You can go with Spacebax. They

439
00:23:43,320 --> 00:23:47,120
Speaker 1: are flying people to the International Space Station around fifty

440
00:23:47,119 --> 00:23:50,800
Speaker 1: five million dollars. They're also sending people in a free

441
00:23:50,880 --> 00:23:53,200
Speaker 1: bit around the Earth for a few days with a

442
00:23:53,320 --> 00:23:57,199
Speaker 1: dragon caps gole and that undisclosed price, but probably in

443
00:23:57,240 --> 00:24:01,080
Speaker 1: the same rate compared to you know, Blue Origin hasn't

444
00:24:01,080 --> 00:24:03,360
Speaker 1: announced their pricing yet, but we can guess probably about

445
00:24:03,359 --> 00:24:06,520
Speaker 1: a million dollars somewhere around there. Origin Galactic is about

446
00:24:06,520 --> 00:24:08,480
Speaker 1: to raise their prices up from a quarter of a million,

447
00:24:08,520 --> 00:24:10,240
Speaker 1: so we don't know what yet, So it is a

448
00:24:10,280 --> 00:24:12,919
Speaker 1: significant cost difference with you. I'd love to go up

449
00:24:12,920 --> 00:24:16,200
Speaker 1: there in orbit to do do some loops'll be fantastic. Yeah,

450
00:24:16,200 --> 00:24:18,520
Speaker 1: it's only two thousand bitcoin. Then basically, if you want

451
00:24:18,520 --> 00:24:22,959
Speaker 1: to ride to the loops around in orbit, SpaceX can

452
00:24:23,000 --> 00:24:26,560
Speaker 1: do it. Why does SpaceX seem to be so far

453
00:24:27,280 --> 00:24:30,760
Speaker 1: ahead of the rest, Laura, are they just you know,

454
00:24:30,800 --> 00:24:34,280
Speaker 1: did did Elon Musk just go all in and um

455
00:24:34,320 --> 00:24:36,680
Speaker 1: everybody else kind of held back a little to watch

456
00:24:36,840 --> 00:24:40,679
Speaker 1: his lead. Well, it's very difficult and Elon Musk had

457
00:24:40,800 --> 00:24:43,560
Speaker 1: some real challenges in the beginning, but his goal is

458
00:24:43,600 --> 00:24:46,400
Speaker 1: to send humans to Mars, and so everything that SpaceX

459
00:24:46,440 --> 00:24:49,280
Speaker 1: does is to get that goal, sending humans to Mars.

460
00:24:49,359 --> 00:24:50,879
Speaker 1: And a lot of the work that they did early

461
00:24:50,960 --> 00:24:53,520
Speaker 1: on has been ber Nassas then being cargo to the

462
00:24:53,560 --> 00:24:57,120
Speaker 1: International Space Station, which helped them develop their Falcon nine

463
00:24:57,160 --> 00:25:01,320
Speaker 1: rocks Crew Dragon Um which Crew Dagon now carries astronauts

464
00:25:01,400 --> 00:25:03,640
Speaker 1: to the International Space Station as well, and that has

465
00:25:03,680 --> 00:25:07,240
Speaker 1: been their real push is getting these government contracts, whereas

466
00:25:07,320 --> 00:25:10,240
Speaker 1: Virgin Galactic, for example, doesn't really care so much about

467
00:25:10,640 --> 00:25:13,919
Speaker 1: government contracts. They have a few again orbital science, but

468
00:25:14,000 --> 00:25:16,480
Speaker 1: their focus has all been on the space tourism, and

469
00:25:16,520 --> 00:25:19,159
Speaker 1: Blue Origin has a mix. They want to do space tourism,

470
00:25:19,200 --> 00:25:20,920
Speaker 1: they also want to go beyond. They want to take

471
00:25:20,960 --> 00:25:23,440
Speaker 1: their new Gland rocket and development right now to orbit,

472
00:25:23,680 --> 00:25:26,119
Speaker 1: and they want to build uh space stations. As you

473
00:25:26,160 --> 00:25:29,320
Speaker 1: heard Jesse's obay, getting people m off Earth and getting

474
00:25:29,880 --> 00:25:33,920
Speaker 1: Earth and really doing this whole cities and space concept. So, Laura,

475
00:25:33,960 --> 00:25:37,800
Speaker 1: what's the role of NASA right now? We've seen three

476
00:25:38,160 --> 00:25:43,720
Speaker 1: successful privatized commercial applications here with Mr Sir Richard Branson,

477
00:25:43,880 --> 00:25:47,160
Speaker 1: Elon Musk and now Jeff Bezos. What is the role

478
00:25:47,200 --> 00:25:51,080
Speaker 1: of NASA right now? NASA is a great innovator for

479
00:25:51,240 --> 00:25:54,199
Speaker 1: pushing those boundaries. So NASA right now is focused on

480
00:25:54,200 --> 00:25:57,240
Speaker 1: getting humans to the Moon, and they are actually contracting

481
00:25:57,280 --> 00:26:00,480
Speaker 1: with SpaceX and hopefully in the future Blue Origin to

482
00:26:00,680 --> 00:26:03,960
Speaker 1: send people to the lunar surface as early as four

483
00:26:04,359 --> 00:26:06,760
Speaker 1: and so that's really exciting to have a new space

484
00:26:06,760 --> 00:26:09,840
Speaker 1: station built in lunar orbit. So um not just in

485
00:26:09,960 --> 00:26:12,120
Speaker 1: National Space station anymore. It's can also be the gateway

486
00:26:12,200 --> 00:26:14,640
Speaker 1: in lunar orbit around the Moon and then sending people

487
00:26:14,680 --> 00:26:16,600
Speaker 1: to the surface and then hopefully a lunar base in

488
00:26:16,640 --> 00:26:19,879
Speaker 1: the future. So really pushing those boundaries and also bringing

489
00:26:19,880 --> 00:26:23,880
Speaker 1: commercial companies along with so contracting to commercial companies, large

490
00:26:23,880 --> 00:26:25,919
Speaker 1: ones like I just mentioned, but also smaller ones as

491
00:26:25,960 --> 00:26:29,280
Speaker 1: well that can really help bring the technology and the

492
00:26:29,359 --> 00:26:33,600
Speaker 1: humans the U S industry followers, how far is it

493
00:26:33,640 --> 00:26:36,440
Speaker 1: into the future when there's a lunar base where we live?

494
00:26:36,480 --> 00:26:40,200
Speaker 1: You know, I loved an Interstellar. Um, you know at

495
00:26:40,200 --> 00:26:42,119
Speaker 1: the end when they show and I want to spoil it,

496
00:26:42,160 --> 00:26:44,760
Speaker 1: But if if you haven't seen Interstellar, then you have

497
00:26:44,840 --> 00:26:48,600
Speaker 1: really bad taste in movies because it rules. Um they

498
00:26:48,680 --> 00:26:51,960
Speaker 1: show that, you know, the space station that they live

499
00:26:52,000 --> 00:26:55,959
Speaker 1: in that has the kind of mirrored really weird anti

500
00:26:56,000 --> 00:27:00,240
Speaker 1: gravity baseball field and stuff. How long until people live

501
00:27:00,600 --> 00:27:04,480
Speaker 1: in space who have been living in space for twenty

502
00:27:04,560 --> 00:27:06,679
Speaker 1: years on the International Space Station? Yeah, but not you

503
00:27:06,720 --> 00:27:10,280
Speaker 1: and me, Laura. No, not you and me. But maybe

504
00:27:10,320 --> 00:27:12,600
Speaker 1: someday it'll be people like us who can afford it.

505
00:27:12,600 --> 00:27:14,760
Speaker 1: And there's going to be commercial space stations coming on

506
00:27:14,800 --> 00:27:17,679
Speaker 1: board after the International Space Station, which has planned to

507
00:27:17,680 --> 00:27:20,199
Speaker 1: be retired somewhere in the So there's going to be

508
00:27:20,240 --> 00:27:22,600
Speaker 1: commercial space stations that could maybe bring people like you

509
00:27:22,640 --> 00:27:25,600
Speaker 1: and me eventually up into orbit. And then Luna bas

510
00:27:25,680 --> 00:27:27,840
Speaker 1: is coming up as well. On the Artumus program is

511
00:27:27,840 --> 00:27:30,840
Speaker 1: going to first start with government astronauts, both US and

512
00:27:30,920 --> 00:27:34,160
Speaker 1: international partners, and then it'll be built up over the

513
00:27:34,280 --> 00:27:36,280
Speaker 1: coming deck. You well, andsume we go back to the Moon,

514
00:27:36,359 --> 00:27:37,720
Speaker 1: Right when do we go? I don't know why we

515
00:27:37,800 --> 00:27:40,880
Speaker 1: stopped going there at the end of for all mankind,

516
00:27:41,000 --> 00:27:45,679
Speaker 1: but hopefully soon we go go back. That's the and

517
00:27:45,760 --> 00:27:48,280
Speaker 1: as early as twenty four as the goal. And so

518
00:27:48,400 --> 00:27:51,000
Speaker 1: that is the plan for the very first lunar landing mission.

519
00:27:51,080 --> 00:27:54,359
Speaker 1: But they want to be round the moon so soon.

520
00:27:55,119 --> 00:27:57,359
Speaker 1: All right, We're waiting to have a press conference from

521
00:27:57,440 --> 00:27:59,360
Speaker 1: Jeff Bezos coming up in just moments and we'll bring

522
00:27:59,359 --> 00:28:01,879
Speaker 1: that to you. Uh. We're speaking with law Force, space

523
00:28:01,880 --> 00:28:06,360
Speaker 1: analysts and owner of Astroltical Law. We've got three billionaires

524
00:28:06,359 --> 00:28:10,040
Speaker 1: so far in the game. Uh. Is there expectations that

525
00:28:10,080 --> 00:28:15,800
Speaker 1: there will be more private either billionaires or enterprises or

526
00:28:15,880 --> 00:28:18,880
Speaker 1: what's the future there, or even bigger government investment, right,

527
00:28:18,960 --> 00:28:23,560
Speaker 1: because why don't some big governments get into this. Well,

528
00:28:23,600 --> 00:28:26,800
Speaker 1: there are around the country something called the Artemis Accords,

529
00:28:26,800 --> 00:28:28,639
Speaker 1: which is now as well as governments are around the

530
00:28:28,640 --> 00:28:31,679
Speaker 1: world that has signed to do this partnership with the

531
00:28:31,760 --> 00:28:34,239
Speaker 1: Artemis program with NASA to go to the Moon, and

532
00:28:34,280 --> 00:28:36,640
Speaker 1: also established some rules as we go to make sure

533
00:28:36,640 --> 00:28:38,920
Speaker 1: the ware all cooperating. And then on the other side

534
00:28:38,960 --> 00:28:41,320
Speaker 1: of the planet, we've got China and Russia partnering to

535
00:28:41,400 --> 00:28:43,239
Speaker 1: also go to the Moon, and they're going to bring

536
00:28:43,280 --> 00:28:46,400
Speaker 1: international partners as well, probably not the United States, but

537
00:28:46,560 --> 00:28:48,000
Speaker 1: you know, we don't know how that's going to play

538
00:28:48,000 --> 00:28:50,800
Speaker 1: out in the future. And then they've also lotched investment

539
00:28:50,920 --> 00:28:53,280
Speaker 1: in UM just some of the stuff that's really practical

540
00:28:53,320 --> 00:28:55,280
Speaker 1: on the ground. How do you take this technology that

541
00:28:55,480 --> 00:28:58,400
Speaker 1: we're developing here and make it really useful for helping

542
00:28:58,400 --> 00:29:01,880
Speaker 1: out the planet. For example, if you want to go

543
00:29:02,040 --> 00:29:05,080
Speaker 1: to UM the International Space Station, live on the International

544
00:29:05,120 --> 00:29:07,400
Speaker 1: Space Station, you need life support system. Well, how do

545
00:29:07,440 --> 00:29:10,280
Speaker 1: you use that life suport system to clean the air,

546
00:29:10,400 --> 00:29:12,800
Speaker 1: clean the water on the space station. It can also

547
00:29:12,800 --> 00:29:14,800
Speaker 1: be used for a set of Earth. So a lot

548
00:29:14,840 --> 00:29:16,800
Speaker 1: of that investment goes right back to Earth and it's

549
00:29:16,800 --> 00:29:19,280
Speaker 1: not a weight in any ways. UM. And then when

550
00:29:19,320 --> 00:29:21,600
Speaker 1: you think about the future. Like I said, there's commercial

551
00:29:21,640 --> 00:29:23,520
Speaker 1: space stations coming on board. They're not all going to

552
00:29:23,560 --> 00:29:26,080
Speaker 1: be privately funded. It's going to be a combination of

553
00:29:26,120 --> 00:29:29,680
Speaker 1: government financing and public private partnerships. And there's also going

554
00:29:29,720 --> 00:29:32,480
Speaker 1: to be some really great stuff happening um in terms

555
00:29:32,520 --> 00:29:34,840
Speaker 1: of susan lunar space. That's the space between the Earth

556
00:29:34,880 --> 00:29:37,680
Speaker 1: and the Moon and that millunar's surface. So a lot

557
00:29:37,800 --> 00:29:41,640
Speaker 1: of private investment there possibly in lunar mind so taking

558
00:29:41,680 --> 00:29:43,800
Speaker 1: the dirt and dust that's on the Moon and merely

559
00:29:43,840 --> 00:29:47,360
Speaker 1: transforming it into something that's useful. All right, Laura, thanks

560
00:29:47,400 --> 00:29:49,760
Speaker 1: so much for joining us. Fascinating stuff. Laura Force like

561
00:29:49,840 --> 00:29:52,920
Speaker 1: there's a space analyssue os astroltical and she also read

562
00:29:52,920 --> 00:29:57,560
Speaker 1: a book entitled Rise of the Space Age. Millennials. Actually

563
00:29:57,600 --> 00:30:00,080
Speaker 1: now they think about we saw someone from J and

564
00:30:00,160 --> 00:30:04,160
Speaker 1: Z go up and the Bezos bros. Are kind of

565
00:30:04,200 --> 00:30:07,840
Speaker 1: like generation Golf, Like my generation, your generation, right, Uh,

566
00:30:08,000 --> 00:30:11,160
Speaker 1: I don't know, I'm the tail end of the Baby boomers. Really, yeah,

567
00:30:11,360 --> 00:30:14,000
Speaker 1: you're so young for a Baby Boomer. And then Wally

568
00:30:14,080 --> 00:30:18,200
Speaker 1: of course, yes, she's like the greatest generation. Sure, I

569
00:30:18,200 --> 00:30:20,000
Speaker 1: guess that's what we call that we can't really remember

570
00:30:20,000 --> 00:30:22,640
Speaker 1: it anyway, Laura, thanks so much for joining us. Thanks

571
00:30:22,640 --> 00:30:26,120
Speaker 1: for listening to the Bloomberg Markets podcast. You can subscribe

572
00:30:26,120 --> 00:30:29,880
Speaker 1: and listen to interviews with Apple Podcasts or whatever podcast

573
00:30:29,920 --> 00:30:33,440
Speaker 1: platform you prefer. I'm Matt Miller. I'm on Twitter at

574
00:30:33,480 --> 00:30:37,280
Speaker 1: Matt Miller three. On False Sweeney, I'm on Twitter at

575
00:30:37,320 --> 00:30:40,160
Speaker 1: pt Sweeney Before the podcast, you can always catch us

576
00:30:40,200 --> 00:30:41,600
Speaker 1: worldwide at Bloomberg Radio