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Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside

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Speaker 1: my co host Matt Miller. Every business day we bring

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Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along

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Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast

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Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and

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Speaker 1: at Bloomberg dot com slash podcast. We were talking about

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Speaker 1: the two year you know, bonds, and this is your

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Speaker 1: Bailey Wick Matt being a German resident for so many years,

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Speaker 1: but again the two year German bond fort the buond,

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Speaker 1: the boon forty two basis points down twenty five basis

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Speaker 1: points today just brutal. So this is perfect timing for

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Speaker 1: our next guest, Pooja kumera European rate strategist at t D. Pooja,

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Speaker 1: do you look at the European you know, just the

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Speaker 1: German bond market. What's it telling us today? Good money? Yes,

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Speaker 1: it doesn't really think that ECB high fifty basics points yesterday.

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Speaker 1: I think what markets are seeing right now is that

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Speaker 1: Europe cannot escape procession, and that has been seen in

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Speaker 1: the last couple of weeks because we are reading more

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Speaker 1: into weaker data than instation strips, and even next week

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Speaker 1: when we are going to get the next euro area

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Speaker 1: of dash PM MICE, I doubt see itsel up that much,

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Speaker 1: just because the move is all towards the growth data

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Speaker 1: I've been instation data. I think I just want to

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Speaker 1: point out that we saw this morning we had more

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Speaker 1: ECB headlines. Kasimir came out and said the September rate

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Speaker 1: hike could be UM fifty as well, obviously or fifty UM,

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Speaker 1: so I think that's what moved markets there. But even

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Speaker 1: here in the U s PUJA we've seen massive moves.

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Speaker 1: I mean, UM Paul and I were just looking at

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Speaker 1: the ten year We're down twenty seven basis points in

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Speaker 1: two sessions. What's going on? It's it's it's been horrible.

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Speaker 1: I think one thing to note yesterday priced action that

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Speaker 1: we saw across rates for mostly driven by a very

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Speaker 1: poor liquidity because we could see a lot of block

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Speaker 1: trades having that cause to move, and today's move us

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Speaker 1: primarily with one of the other. We've got reeper data

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Speaker 1: from Europe MS to us p M, so I think

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Speaker 1: right now any reaction is anyway is getting much more

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Speaker 1: exaggerated because we are heading towards the summer liquidity season

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Speaker 1: and also markets somehow now we know that we are

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Speaker 1: sitting the end of the hiking cycles. They know that

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Speaker 1: we could see maybe a couple of big moves from

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Speaker 1: our central banks bankers, but they cannot continue. And that's

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Speaker 1: the kind of message that we've got from Easy to

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Speaker 1: be itself. They have to move forward rate guidance that

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Speaker 1: we had before. They haven't said that they will be

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Speaker 1: looking for bigger calibrations with respect to rate heights or

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Speaker 1: September that we had before. So September could either be

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Speaker 1: twenty five, fifty or seventy five. And I think if

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Speaker 1: if data continues to decree, rate market will start even

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Speaker 1: thinking about twenty five, markets will think that the ECB

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Speaker 1: is actually done with gritis. So I think you are

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Speaker 1: we will be extremely data dependent and we could see

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Speaker 1: moving much more exacuated just because there's thin liquidity. So

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Speaker 1: put you know, so much news coming out of Europe

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Speaker 1: this week with the ECB and what's going on in Italy.

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Speaker 1: Let's focus on just real quickly on Italy here as

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Speaker 1: we have a little bit of the benefit of hindsight

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Speaker 1: here with drug resignation, how's that viewed within the rates market,

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Speaker 1: the European rates market. It can't be good. But how

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Speaker 1: much of a concern is it? It is a concern.

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Speaker 1: I think markets will get much more concerned when we

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Speaker 1: hit closer to the election in September. Train ships. ECB

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Speaker 1: has announced to tp I tool, but first of all,

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Speaker 1: this tool needs to be activated by the member states

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Speaker 1: and comes with a lot of fistical conditions, so I

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Speaker 1: think no member state would actually be ready to actually

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Speaker 1: use it. It seems more of namesake pool right now.

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Speaker 1: So I think we did see I think today's move

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Speaker 1: is more of a positioning let move, but it's talent

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Speaker 1: politics will start actually getting more and more attention as

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Speaker 1: we had closed it to this September day, so I

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Speaker 1: would actually continue to stay with the moves with respect

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Speaker 1: to wideners in btpsspots, I'm I'm a bit cautious about

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Speaker 1: the rally that we have seen today. All right, Puja Kuma,

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Speaker 1: thank you so much for joining us, Puja Kuma, Europeans

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Speaker 1: Rates strategists for a t D. Looking at the markets here,

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Speaker 1: just kind of churning here. But we've got the SMP down,

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Speaker 1: you know, kind of more or less. We've got the

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Speaker 1: fixed income down double digits wanted to look at the

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Speaker 1: corporates or treasuries. I mean, that's sixty or forty portfolio

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Speaker 1: just got crushed in the first half of the year.

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Speaker 1: I don't know how these people do it for a living.

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Speaker 1: Brent Shooty, he does it for a living. He's a

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Speaker 1: chief investment strategist at Northwestern Mutual. Brent, how do you

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Speaker 1: and your team? But wait, hang on a second, Brent, Paul,

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Speaker 1: you did this for a living for three decades. Yes,

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Speaker 1: I still don't get longer doing it. Probably, yes, exactly.

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Speaker 1: That's why I'm on the radio now. Brent. How do

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Speaker 1: you and your team's kind of reset after that brutal

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Speaker 1: first half of two Yeah, I guess kind of commenting

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Speaker 1: on the stocks and bonds both thing down and how

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Speaker 1: that's kind of I think shell shocked many investors. They

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Speaker 1: shouldn't expect that to happen again. And so if I

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Speaker 1: take you back to ninety six and I look at

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Speaker 1: stocks and bonds, there have been twenty five periods, twenty

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Speaker 1: five annual time horizons in which stocks have been negative

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Speaker 1: since ninety six and bonds were positive, and all but

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Speaker 1: four of those, and so you have this weird period

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Speaker 1: of time beginning of two. The other three time periods

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Speaker 1: or four time periods, where nineteen thirty one, the Great Depression,

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Speaker 1: ninety six, nineteen sixty nine, in nineteen seventy three, besides

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Speaker 1: the Great Depression, the thing that occurred in each and

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Speaker 1: every one of the other ones was high inflation. And

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Speaker 1: this is where we recommend people own commodities because in

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Speaker 1: those other three time periods that I mentioned, besides the

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Speaker 1: Great Depression and now the beginning of two, um, you've

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Speaker 1: seen commodity prices rise. And so I guess two takeaways

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Speaker 1: from that one you need to own some commodities as

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Speaker 1: part of your long allocation. And to don't expect this

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Speaker 1: to happen back to back years because it hasn't happened.

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Speaker 1: It doesn't mean it can't, but it hasn't happened in

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Speaker 1: the ninety other years. So are you saying, then, Brent,

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Speaker 1: A portfolio is not dead. It is not dead. I

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Speaker 1: think it's been declared dead about twenty seven times in

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Speaker 1: my twenty seven year career. Apparently the beginning part of

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Speaker 1: this year was trying. But UM, I don't think that

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Speaker 1: renders it dead for just because it hasn't worked for

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Speaker 1: six or some months, and what about commodities? Retail investors

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Speaker 1: should get that exposure. How do you think, um, actually,

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Speaker 1: you know, um trading futures or buying ETFs or a fund.

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Speaker 1: What do you think is the best way for a

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Speaker 1: retail investor to get pork bellies exposure? Sure probably the

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Speaker 1: easiest in the most efficient way for them to get it.

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Speaker 1: I don't think you need to of it. You saw

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Speaker 1: what actually happened the first part of the year. How

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Speaker 1: a little can go a long way. Uh, And certainly

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Speaker 1: over longer periods of time, it's not going to return

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Speaker 1: as much as the stock market. Um, they should get

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Speaker 1: that through a diversified exposure to commodities. Perhaps something called

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Speaker 1: the Bloomberg Commodities Index is kind of a decent place

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Speaker 1: to think about funds tied to that. Certainly it's not

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Speaker 1: as tax efficient as money, but I think, as we've

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Speaker 1: seen during recent time periods when inflation is rising, it

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Speaker 1: certainly helps shelter you from some of the losses that

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Speaker 1: are occurring in your other parts of the portfolio. You know, Brent,

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Speaker 1: when pros like you say, boy in particularly the fixed

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Speaker 1: income folks say we've never seen negative returns in the

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Speaker 1: fixed income markets like we saw in the first half.

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Speaker 1: When I hear stuff like that, I'm like, well, I'm

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Speaker 1: gonna go out and buy that stuff. But it's not

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Speaker 1: the same for equities, and we're down and equities I

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Speaker 1: don't feel like I have to run out and buy

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Speaker 1: equities here. Um, how are you guys thinking about kind

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Speaker 1: of you know, just maybe valuation or can't get any

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Speaker 1: worse than than the psychology of the markets. Yeah, I mean,

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Speaker 1: you've seen horrible son, I'm and I know that this

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Speaker 1: week we had the Bank of America survey that everybody's

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Speaker 1: in referencing, but you've seen the American Association of Individual Investors.

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Speaker 1: I believe we've had uh eight sub twenty readings, which

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Speaker 1: doesn't occur very often going back to and most of

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Speaker 1: those have given away to positive future year. By the way, Yeah,

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Speaker 1: people's emotion kind of a contraining indicator. And so I'm

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Speaker 1: not suggesting it can't get any worse. It certainly could,

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Speaker 1: But I do think the worst isn't on the inflation side,

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Speaker 1: which I do think will help alleviate those fears, which

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Speaker 1: are essentially that the economy slows but inflation doesn't. And

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Speaker 1: I think the reason why the markets handled. Some of

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Speaker 1: the bad news on the economic side over the past

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Speaker 1: few weeks that we've seen, including today, is because inflation

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Speaker 1: is starting to push lower. I think people are catching

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Speaker 1: on that inflation is being driven lower. You mentioned agriculture

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Speaker 1: in the beginning. I mean I talked about commodities. The

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Speaker 1: irony of commodities is now they're falling just a bit,

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Speaker 1: which is actually good for your stock and bond portfolio.

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Speaker 1: But I think it's also good for inflation pushing forward.

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Speaker 1: And I think you're gonna see inflation fall, which will

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Speaker 1: allow the market to guide. The Bloomberg Commodities Index UM

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Speaker 1: started the year just under a hundred. It peaked in

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Speaker 1: June at UM one thirty six seven, and now we're

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Speaker 1: back down to one seventeen. And it's also been a

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Speaker 1: pretty good month for stocks. I mean, we started the

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Speaker 1: month off at thirty and change I think on the SMP,

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Speaker 1: and now we're pushing four thousand. Okay, it's a down day,

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Speaker 1: but it's been a good week. UM. When markets fall

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Speaker 1: twenty some percent brent, for a retail investor who's got

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Speaker 1: a longer time horizon, isn't it a decent idea to

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Speaker 1: go ahead and at least dollar cost average in or

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Speaker 1: am I dated in that thinking? No, you're not dated.

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Speaker 1: All the all the old rules of investing still work.

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Speaker 1: The first one that I've mentioned to people listening in

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Speaker 1: is don't sell what others are um, even if you

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Speaker 1: don't want to buy, don't sell what you have. But

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Speaker 1: certainly adding to your exposure during downturns, it's historically proven

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Speaker 1: to be a good thing, and I don't think this

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Speaker 1: time will be any different. You certainly may have to

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Speaker 1: go through some uh periods of doubt about what you

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Speaker 1: just did. Um, but certainly, you know, I don't think

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Speaker 1: it's going to be a bad idea if you do,

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Speaker 1: you know, two, three, or four five years from now,

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Speaker 1: which hopefully, if you're buying stocks, you have that horizon

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Speaker 1: for those to actually kind of come to fruition. Alright,

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Speaker 1: good stuff. Brent Shrudy joins his chief investment strategist for

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Speaker 1: Northwestern Mutual. You know, he's in Milwaukee, so that it's

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Speaker 1: summertime now, it's probably like a hundred degrees there and

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Speaker 1: it'll be snow on the ground in two months. He's

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Speaker 1: he's the Chicago guy though NBA from University Chicago. No, Yeah,

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Speaker 1: NBA from those guys work hard, they're smart, they're all

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Speaker 1: about the numbers. Um. I'm more of a big picture

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Speaker 1: story guy. But you know, Chicago people, you've got to

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Speaker 1: be into this, like those freshwater economics come down. Yeah, exactly.

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Speaker 1: All right, good stuff. Bruce Levine joins the CEO of

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Speaker 1: night Shares, and we're gonna talk first, Bruce about what

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Speaker 1: that is. I know that UM for a long time

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Speaker 1: in crypto, it's been a good strategy to buy at

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Speaker 1: the close and sell at the open, or buy on

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Speaker 1: Friday and sell on Monday. Is that a similar idea

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Speaker 1: behind night Shares? What's night Years? Yeah, I think there's

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Speaker 1: some similarity there night chairs. Is this really with the

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Speaker 1: night effect? I should say? Is this really surprising phenomenon

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Speaker 1: that a very large percentage of the returns of being

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Speaker 1: buy and hol they're coming through the night session, and

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Speaker 1: they're coming with substantially less volatility than the daytime session.

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Speaker 1: So from the risk adjested basis, it makes a lot

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Speaker 1: of sense to be playing in the night session as

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Speaker 1: compared with the day session. All right, So what securities

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Speaker 1: in particular have a meaningful night session? If you will, Yeah,

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Speaker 1: it's interesting in the night effect we found is very

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Speaker 1: broad in acrey markets. It exists around the world. So

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Speaker 1: if you were a Japanese investor who would buy the

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Speaker 1: Japanese clothes and sell the Japanese open you'd have good

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Speaker 1: risk agested returns. If you're a German investor, same thing,

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Speaker 1: And um we find it at the single stock level.

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Speaker 1: But what we've decided to launch is to broad based

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Speaker 1: indexes give you this night effect essentially in the large

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Speaker 1: cap in the small cap space. So how many et

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Speaker 1: s do you think you're inna launch and how long

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Speaker 1: is it this going to take? Yeah, So just to

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Speaker 1: give a sense of you know, kind of what I'm

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Speaker 1: talking about and why we launched these, Uh, we were

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Speaker 1: getting returned in the large cap space, let's say over time,

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Speaker 1: you were getting maybe the return coming in the night session,

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Speaker 1: and the volatility of that being uh maybe fifty of

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Speaker 1: buy and hold. So again nice risk of just returns.

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Speaker 1: We saw something really amazing and small caps where the

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Speaker 1: daytime return on the Russell two South over a long

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Speaker 1: period of times was either negative or just about flat.

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Speaker 1: So all of the return was coming in the night session.

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Speaker 1: So so the two that we launched so far are

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Speaker 1: the end spy, So think of a night spy. Uh,

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Speaker 1: and then that also playing on the ticker and the

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Speaker 1: heavily traded russell to E T F I, w M

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Speaker 1: D and w M. So those are the first two.

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Speaker 1: We have four more in registration and we'll see what

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Speaker 1: happens over time. But we think it's a really interesting

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Speaker 1: concept that's never been done in ets before. So have

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Speaker 1: these two E T s have you launched them? And

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Speaker 1: if so, kind of what's the interest been. Yeah, so

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Speaker 1: we launched them on JU and I'd say we're getting

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Speaker 1: a really good reception. People are very interested in the concept.

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Speaker 1: They're trying to figure out how to blend them into

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Speaker 1: their portfolios. And you know, we're just out there telling

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Speaker 1: our story in the down days of summer that we're

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Speaker 1: getting a good responsible. But do you expect to focus

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Speaker 1: on equities? I mean, I type E T F go right,

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Speaker 1: and um, I can put in night shares if I

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Speaker 1: leave it on equity. I see these, but then I'm

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Speaker 1: reminded you could be doing bonds, you could be doing commodities,

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Speaker 1: you could be Because of my experience in crypto, I

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Speaker 1: see that it's worked across asset classes. Yeah, I know

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Speaker 1: it is so now it's equities, and part of that

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Speaker 1: is just the operational complexities of actually doing this. So

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Speaker 1: you know, cryptos obviously there's no cryptos being traded in

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Speaker 1: et F format period other than the futures um you

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Speaker 1: know with UH commodities is a good example where we

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Speaker 1: have looked at it. That's something you might look at

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Speaker 1: on the bond side that you get some interesting results

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Speaker 1: on the on the high yield side, it tends to

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Speaker 1: look a little bit like equities that kind of returns.

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Speaker 1: Yet and sometimes on treasuries you get the opposite of

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Speaker 1: the night effect, which is when people are going out

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Speaker 1: of the equities to get flat at the end of

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Speaker 1: the day, um, they're going into treasuries. So so we're

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Speaker 1: looking at all that. It's really interesting. Are you looking

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Speaker 1: also at crypto Bruce, mean, do you have you know,

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Speaker 1: like SEC news alerts on your phone just in case

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Speaker 1: they do approve of crypto e t f UM Not yet,

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Speaker 1: but you know, we're we're we're just doubt there on

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Speaker 1: the equity side started we're starting down the path here,

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Speaker 1: so we will make sure to put that crypto alert

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Speaker 1: on our phone. It's it's interesting that in such a

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Speaker 1: difficult year for I p O s, you know, no

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Speaker 1: new issues and UM and for the market in general,

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Speaker 1: E t F introductions have still been pretty strong this year,

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Speaker 1: right ye have. But I think I heard a statum

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Speaker 1: about two and the sifty new funds this year, you know.

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Speaker 1: I think what you're seeing is two things. One is,

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Speaker 1: most of the innovation and asset management in my opinion,

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Speaker 1: comes through the et F structure these days. That seems

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Speaker 1: to be the preferred vehicle for most investors. The second

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Speaker 1: thing you're you're seeing is you've seen the mutual fund

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Speaker 1: industry really um embrace the E t F vehicle, and

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Speaker 1: so you've seen conversion. Then you've seen some of the

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Speaker 1: traditional folks get into the industry for the first time.

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Speaker 1: So it's driving a lot of product launch. It took

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Speaker 1: them long enough. So Bruce, you're at I Shares, Black Rocks.

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Speaker 1: Selection of e t F s give us a sense

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Speaker 1: of just how the et F space it's kind of

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Speaker 1: evolved over time, and is it a good attractive area

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Speaker 1: to look at today. It's kind of a duopoly, right

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Speaker 1: with I mean, I Shares and Vanguard are the two

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Speaker 1: biggest shops on the street. They are and they take

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Speaker 1: in you know, the lion's share of the money, and

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Speaker 1: they do it in the more traditional et f that

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Speaker 1: were launched twenty five years ago. You know, I launched

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Speaker 1: actually a number of them, and you know that if

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Speaker 1: you take some of the flows away from them, it's

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Speaker 1: still pretty large numbers. It's still a growth industry and

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Speaker 1: there's always room for innovation. You have seen some good

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Speaker 1: things happening from some of the smaller firms, and you know,

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Speaker 1: I expected to just continue to be the center of

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Speaker 1: innovation and asset management. All right, So you have an

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Speaker 1: affinity here. I'm just looking at kind of your CV.

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Speaker 1: You have affinity for Charlottesville, Virginia, University of Virginia undergrad

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Speaker 1: and then you get the NBA at the Darden School

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Speaker 1: of Business, and I was considering going there. That was

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Speaker 1: my choice between Duke and Virginia. But you know what,

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Speaker 1: the people Bruce at Darden, they just worked too hard.

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Speaker 1: You guys really worked hard at doing that case stuff, right, Yeah,

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Speaker 1: we the series Lament. The type of the law school

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Speaker 1: which was right across from us is really playing softball

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Speaker 1: while we're working on our cases. But um, now I

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Speaker 1: have a greater finishing Charlotte, Like you said, it's a

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Speaker 1: great place. You know. I was down there Matt for

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Speaker 1: my tour and they were just telling me how hard

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Speaker 1: they worked. And I was literally getting off a stretch

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Speaker 1: of like twenty seven days straight work, you know, as

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Speaker 1: an investment banking analyst, scrub analyst. And the last thing

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Speaker 1: I wanted to hear was we worked the hardest. Yeah.

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Speaker 1: So I went to Duke and had a phenomenal two years.

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Speaker 1: And so all right, Bruce, thanks so much for joining us.

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Speaker 1: Bruce Levine, CEO of Night Shairs, I didn't know this

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Speaker 1: night trading thing was a thing. Yeah, it's huge, and

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Speaker 1: um it's amazing if you look at the charts, because

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Speaker 1: you don't expect it to be as successful as it is,

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Speaker 1: and then I guess it would be laborious. Um well,

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Speaker 1: from my perspective, maybe the kids could write code for it,

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Speaker 1: but obviously in E t F just makes it easier

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Speaker 1: and keeps the cost down. Where you go to Man Deep,

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Speaker 1: because we need to get smart here on the social

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Speaker 1: media named snap down thirty, uh pinterest down twelve, Twitter

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Speaker 1: also a down, So Man Deep seeing he covers technology

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Speaker 1: for Bloomberg Intelligence. Man Deep, is this some of this

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Speaker 1: week just we're seeing some of these smaller social media names.

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Speaker 1: Is it just because they're not players and we need

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Speaker 1: to really wait for the facebooks and the Google's next week? Yes,

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Speaker 1: and uh, I think what it shows is that not

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Speaker 1: everything in ad spending is going to be cut. So

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Speaker 1: if companies are looking at their discretionary versus you know,

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Speaker 1: essential ad spend, So in the discretionary bucket, probably snap Pinterest,

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Speaker 1: the smaller social media platform sofall as opposed to the

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Speaker 1: non stationary where you Google search spend is probably the

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Speaker 1: last thing to be cut. So I think that's what

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Speaker 1: the market is hinting at. But who knows, maybe Google

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Speaker 1: disappoints as well. It's very unlikely. And you know, the

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Speaker 1: valuation multiples have compressed a lot in anticipation, so I

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Speaker 1: think even if the report an inline quarter, you are

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Speaker 1: going to see the stock will be up. So uh yeah,

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Speaker 1: I I think a lot has already priced in in

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Speaker 1: terms of weakness. Man, deep, why does um Snapchat have

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Speaker 1: the power to move the market. I mean, it's wiped out.

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Speaker 1: I think eighty billion dollars in social media market cap,

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Speaker 1: but it's not even worth eight billion dollars itself. And

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Speaker 1: I didn't even really know people still used it. I

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Speaker 1: remember back in the day the idea was college kids

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Speaker 1: could text each other and it would disappear or something.

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Speaker 1: But is it still like a big deal. Well, so

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Speaker 1: they still have around three forty and daily active users.

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Speaker 1: So when you start looking at you know a number

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Speaker 1: of platforms that have got over two hundred million daily

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Speaker 1: active users, you can it's probably you know, less intent

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Speaker 1: at this point of time. So clearly they have that

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Speaker 1: user base. Now their engagement seems to be falling, and

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Speaker 1: part of that has to do with competition from TikTok.

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Speaker 1: But at the same time, the advertisers are pulling back

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Speaker 1: because they just don't seem to get the r Y

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Speaker 1: they were getting before. And that is the big change.

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Speaker 1: Because Apple's privacy changes has really heard the r o

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Speaker 1: I on ad spending for some of these platforms, and uh,

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Speaker 1: I think that is the big change. I mean, doesn't

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Speaker 1: warrant eighty billion dollar route in terms of the market

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Speaker 1: cap of all these companies, I don't think so. But

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Speaker 1: clearly there's a lot of uncertainty around how much those

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Speaker 1: changes would affect the large companies like Alphabet and Matter.

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Speaker 1: All right, well, Snap has a market cap at of

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Speaker 1: sixteen point eight billions, a little bit bigger than that,

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Speaker 1: but nothing relative to the Facebook's and Google. So thirty seconds,

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Speaker 1: Man Deep, what's the key thing we should look for

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Speaker 1: from those big companies next week? Facebook and Google? Yeah,

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Speaker 1: direct response adds because those are the ones directly hit

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Speaker 1: by Apple's privacy changes. If Meta can show you know,

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Speaker 1: even an inline quarter, the estimates have been devised the

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Speaker 1: lower by ten percent if they report an inline quarter,

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Speaker 1: I think I thinks those stabilized. All right, Man Deep,

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Speaker 1: good stuff. As always appreciate your phone in it in

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Speaker 1: from home. But I see him here. He's here all

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Speaker 1: the time too, So he's one of those guys A feeling.

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Speaker 1: He also works very hard from home. This is you

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Speaker 1: know the debate, right, do people are they pretending to

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Speaker 1: work from home? As Elon Musk says, or as we

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Speaker 1: see from Man Deep, are they excelling They're? Deep is

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Speaker 1: a smart dude and he's a hard work He puts

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Speaker 1: out some great research. You can get it in b

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Speaker 1: I go. I'll just get right to next guy, Dan Mary,

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Speaker 1: CEO and founder of Vertex Software UM and I also

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Speaker 1: want to talk to about what's going on in great

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Speaker 1: state of Iowa. We'll get to that in a minute. Hey, Dan,

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Speaker 1: thanks so much for joining us. Tell us what Vertex

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Speaker 1: software is, what are you guys doing, and and kind

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Speaker 1: of what's your outlook? Well, hey, thanks for having me.

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Speaker 1: So we have cloud based software that helps manufacturers use

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Speaker 1: three D and sales service, factory and supply chain that

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Speaker 1: helps them increase efficiencies, lower costs, and drive revenue. That's

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Speaker 1: kind of the nutshell. It's kind of like if you

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Speaker 1: think about video games, to do games make today, you

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Speaker 1: make heavy use of three D content. Well, manufacturers have

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Speaker 1: a lot of three D content that they provide. It's

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Speaker 1: just much more complex, a lot bigger, and it has

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Speaker 1: to be more precise. So we help happen leverage that

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Speaker 1: content to get more bang for the buck out of

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Speaker 1: that investment. So is it like CAD your own version

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Speaker 1: of AutoCAD, Well, it's kind of like that, except we're

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Speaker 1: more like Netflix for CAD. So we take their CAD

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Speaker 1: data and we make it easier for them to use

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Speaker 1: it downstream of product of alopment and engineering where they

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Speaker 1: make it so they can use it and put in

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Speaker 1: the hands of a salesperson or someone on the factory

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Speaker 1: for or in the hands of their customers. That historically

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Speaker 1: has been really really hard to do, and we make

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Speaker 1: that easy and orders the magnitude more cost efficient. Dan

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00:23:20,119 --> 00:23:22,920
Speaker 1: talks about your partnership with John Deer one of my

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00:23:23,080 --> 00:23:26,639
Speaker 1: favorite companies out there, Mine too, Mine too. Yeah, I mean,

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00:23:26,720 --> 00:23:29,679
Speaker 1: we're just so grateful to work with. You know, iconic

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00:23:29,760 --> 00:23:32,880
Speaker 1: company like John dere is such innovators. So we help

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00:23:33,000 --> 00:23:36,639
Speaker 1: them leverage three D cads like you just said, uh,

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00:23:37,000 --> 00:23:40,200
Speaker 1: to see the state of the factory for forecasting and planning,

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00:23:40,760 --> 00:23:43,879
Speaker 1: for visualizes and equipment of function and for service. Again,

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00:23:43,960 --> 00:23:46,440
Speaker 1: that concept of putting three D in the palm of

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00:23:46,480 --> 00:23:50,000
Speaker 1: people's hands on devices that they use today. Again, it's

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00:23:50,040 --> 00:23:53,280
Speaker 1: been a horse historical challenging. So what is the state

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00:23:53,359 --> 00:23:56,200
Speaker 1: of US manufacturing like right now, especially with the supply

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00:23:56,359 --> 00:24:00,359
Speaker 1: chain issues? Are they getting any better? Chip short ages

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00:24:00,600 --> 00:24:04,600
Speaker 1: really bumming me out? Um, is there an improvement that

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00:24:04,680 --> 00:24:07,960
Speaker 1: you see with the partners you work with? Well, I

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00:24:08,080 --> 00:24:12,040
Speaker 1: think just generally what I'm seeing is certainly right now.

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00:24:12,040 --> 00:24:14,320
Speaker 1: I think everybody knows demand for goods as weakening. You know,

447
00:24:14,480 --> 00:24:17,879
Speaker 1: consumers are starting to spend more on service, labor, energy

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00:24:17,960 --> 00:24:21,320
Speaker 1: costs are rising, and their supply chain bombs. As you mentioned,

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00:24:21,680 --> 00:24:23,440
Speaker 1: so I think what I'm seeing, and I was just

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00:24:23,520 --> 00:24:26,840
Speaker 1: actually on site of one of our customers earlier this week.

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00:24:27,280 --> 00:24:31,840
Speaker 1: I'm just seeing this accelerating need, almost an urgency for automation,

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00:24:32,400 --> 00:24:36,320
Speaker 1: automation and distributed collaboration across time zones. They want to

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00:24:36,359 --> 00:24:38,720
Speaker 1: shorten a side of supply chain and be more nimble

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00:24:38,800 --> 00:24:41,680
Speaker 1: and flexible. That's really what what I see in the

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00:24:41,720 --> 00:24:45,680
Speaker 1: microchip shortage. The nail on the head with that is

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00:24:46,400 --> 00:24:50,480
Speaker 1: we have customers that have equipment parked in parking lots

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00:24:50,560 --> 00:24:53,920
Speaker 1: that they're leasing right because they don't have the parts

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00:24:53,960 --> 00:25:00,360
Speaker 1: to complete the production to deliver the orders. So you know, man, Dan,

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00:25:00,560 --> 00:25:03,520
Speaker 1: do I understand that? You know, I ordered a Chevy

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00:25:03,600 --> 00:25:07,320
Speaker 1: Silverado at the beginning of the year, and it is

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00:25:07,480 --> 00:25:10,360
Speaker 1: apparently as far as I can track, built in Mexico,

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00:25:10,520 --> 00:25:13,640
Speaker 1: sitting in a lot waiting for I think a window

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00:25:13,880 --> 00:25:19,160
Speaker 1: switch chip. I don't ever need to roll the windows down.

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00:25:19,240 --> 00:25:22,000
Speaker 1: I'll take the truck now, thank you very much. Hey Dan,

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00:25:22,640 --> 00:25:25,360
Speaker 1: you know, Matt and I are stuck here in midtown Manhattan.

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00:25:25,440 --> 00:25:27,360
Speaker 1: We have no idea what's going on in the real world.

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00:25:27,400 --> 00:25:29,680
Speaker 1: So we left talking the folks that are out and

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00:25:29,720 --> 00:25:33,239
Speaker 1: about doing stuff you have a bachelor's mechanical engineering from

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00:25:33,320 --> 00:25:37,920
Speaker 1: Iowa State University. That's an eyewa. These days, well, you know,

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00:25:38,040 --> 00:25:40,119
Speaker 1: I think, you know, generally speaking, I think things are

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00:25:40,119 --> 00:25:43,160
Speaker 1: pretty good in Iowa. We have a you know, state

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00:25:43,200 --> 00:25:47,080
Speaker 1: government here that has been really uh you know, supportive

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00:25:47,160 --> 00:25:50,639
Speaker 1: of from my world, support of the innovation. I I

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00:25:50,720 --> 00:25:53,600
Speaker 1: am excited about what's going on in Congress right now

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00:25:53,640 --> 00:25:57,840
Speaker 1: and support for you know, kind of diversifying uh you know,

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00:25:58,160 --> 00:26:02,280
Speaker 1: diversity of the investments for National Science Foundation and Department Energy.

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00:26:02,560 --> 00:26:04,400
Speaker 1: I think that's something I've heard a lot of excitement

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00:26:04,440 --> 00:26:08,560
Speaker 1: about with his latest bill. Um just making it possible

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00:26:08,600 --> 00:26:11,920
Speaker 1: for people in more rural states like us to tap

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00:26:12,000 --> 00:26:14,840
Speaker 1: into you know, grant money. How's it you the farm

481
00:26:14,920 --> 00:26:18,639
Speaker 1: economy out there. We've seen big swings and commodity prices

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00:26:18,680 --> 00:26:20,560
Speaker 1: that Mett and I like to talk about, but you

483
00:26:20,640 --> 00:26:22,760
Speaker 1: guys are actually putting the stuff in the ground and

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00:26:22,840 --> 00:26:26,560
Speaker 1: taking it out. Yeah, you know, I gotta tell you,

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00:26:26,600 --> 00:26:29,600
Speaker 1: I'm in Iowa, and that's not not really my area.

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00:26:30,200 --> 00:26:31,800
Speaker 1: Got a lot of friends, and I got a lot

487
00:26:31,800 --> 00:26:33,840
Speaker 1: of friends in the act. But I grew up in

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00:26:34,440 --> 00:26:37,480
Speaker 1: kind of science technology and was a child at the

489
00:26:37,520 --> 00:26:42,520
Speaker 1: early video game generation, Like, what what are your favorite games?

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00:26:43,640 --> 00:26:45,919
Speaker 1: Oh gosh, geez, well, I go all the way back

491
00:26:45,920 --> 00:26:50,040
Speaker 1: to dude, I was there at the Commodore sixty four.

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00:26:50,480 --> 00:26:55,760
Speaker 1: You know. Oh yeah, yeah, oh you that that impossibation?

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00:26:56,760 --> 00:26:59,680
Speaker 1: Yeah yeah, all right, dad, good, good, good stuff. We

494
00:26:59,720 --> 00:27:03,400
Speaker 1: always appreciate checking in with some of these entrepreneurs out

495
00:27:03,440 --> 00:27:06,560
Speaker 1: there all over the country. Dan Murray's doing it CEO

496
00:27:06,640 --> 00:27:10,440
Speaker 1: and founder Vertex Software bringing some technology solutions to some

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00:27:10,640 --> 00:27:13,880
Speaker 1: industrial companies. And I'm sure that's a big, big plus

498
00:27:13,960 --> 00:27:15,360
Speaker 1: for a lot of these companies when they can get

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00:27:15,560 --> 00:27:19,119
Speaker 1: kind of really step up their tech game, and Dan

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00:27:19,240 --> 00:27:23,560
Speaker 1: Murray does that. Appreciate it. Thanks for listening to the

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00:27:23,560 --> 00:27:27,520
Speaker 1: Bloomberg Markets podcast. You can subscribe and listen to interviews

502
00:27:27,520 --> 00:27:31,800
Speaker 1: with Apple Podcasts or whatever podcast platform you prefer. I'm

503
00:27:31,840 --> 00:27:36,200
Speaker 1: Matt Miller. I'm on Twitter at Matt Miller three. Put

504
00:27:36,240 --> 00:27:38,840
Speaker 1: on Ball Sweeney I'm on Twitter at pt Sweeney. Before

505
00:27:38,880 --> 00:27:42,000
Speaker 1: the podcast, you can always catch us worldwide at Bloomberg Radio.