Speaker 1: Bloomberg Audio Studios, podcasts, radio, news.
Speaker 2: Single best idea and when the news changes, we change.
Speaker 2: Yesterday we wrote David Gera in Rio and it was
Speaker 2: a G twenty meeting and the muckety MUCKs get together
Speaker 2: and all that, and it's a time for you know,
Speaker 2: we played Barry Manilow Lola and copa cabana and all that,
Speaker 2: and there's some lightness a caparina and where's David going
Speaker 2: to dinner? And then just like that it changes into
Speaker 2: deadly serious news. A link Tempco vote, Lockheed Martin missil
Speaker 2: that goes at mock three. That's the headline. This thing
Speaker 2: moves as fast as anything out there, one hundred or
Speaker 2: whatever miles into Russian territory and the facts changes. We're
Speaker 2: live on air headline and some mister Lavrov of Russia
Speaker 2: move the markets. We try to get conversation previously scheduled.
Speaker 2: Jeffrey you from B and Y and Jeffery you of
Speaker 2: course talking about finance and investment. We asked jeff for
Speaker 2: you do you have to look at geopolitics.
Speaker 3: You can never ignore a geopolitics. So it's your fiduciary
Speaker 3: responsibility to have those fundamental allocations. You know that premiure
Speaker 3: within your asset allocation full stop. So that that I
Speaker 3: think is the case in terms of why despite the
Speaker 3: lack of a fiscal argument in the US, we still
Speaker 3: see international investors being overweight US treasuries or at least
Speaker 3: if I look at duration the tenure plus based on
Speaker 3: our CUS Studio data, that hasn't been that much selling
Speaker 3: over the last few weeks or so. And this is
Speaker 3: another reason why you want to hold onto those treasuries
Speaker 3: for now, it helps with the US sustain its fiscal spending.
Speaker 3: But over the medium to longer term there's a story there.
Speaker 3: But you want to overweight, to be weighting at these
Speaker 3: assets even though it doesn't give you a strong yield,
Speaker 3: or you worry about other forms of premium as well.
Speaker 3: But then we fall back to diversification again. You want
Speaker 3: to be diversified. You look at your portfolio, your overweight dollars,
Speaker 3: overweight treasuries. Where are markets that you can afford to
Speaker 3: add to your weightings decorrelated India is a very good example,
Speaker 3: and that those are the other correlations we're looking.
Speaker 2: At too, Jeff. For you bing why very typically and
Speaker 2: I'm guilty of this, we really fight against it every day.
Speaker 2: But the bottom line, folks, is gloom cells. Somebody worried
Speaker 2: and their angst and they're wringing their hands. It's always better.
Speaker 2: It just it works. So we really focus people that say,
Speaker 2: you know what, we're optimistic. David Doyle has led the
Speaker 2: charger on this at Macquarie. His notes very very constructive,
Speaker 2: even if maybe it's getting along in the toothier three
Speaker 2: percent real GDP five percent nomenal GDP. Here is David
Speaker 2: Doyle or Macquarie, his optimism and the American consumer.
Speaker 4: From what we've looked at when it comes to wage gains,
Speaker 4: it's been broad based. So when you look at wages
Speaker 4: as being the driver of consumption, that broad based wage
Speaker 4: gains we think is propelling things across the spectrum of
Speaker 4: income earners. Now you may see some disproportionate gains from
Speaker 4: higher income earners due to the wealth effect from the
Speaker 4: strength and equity markets, but overall we think it's almost
Speaker 4: all income groups that are participating.
Speaker 2: David Doyle at Macquarie really thanks to our team. We
Speaker 2: had to blow up the show today. The interns got
Speaker 2: together with Eric and really put together a terrific effort.
Speaker 2: David Gerr of course in Rio on short notice. Tina
Speaker 2: Fordam was with his Ford and Global Insight look for
Speaker 2: that out on Bloomberg Digital. She was absolutely lights out
Speaker 2: on the optionality that mister putin faces in a special
Speaker 2: thanks to Bloomberg's Mark Champion. Mark Champion was the editor
Speaker 2: of the Moscow Times in the early middle nineteen nineties.
Speaker 2: He has encyclopedic knowledge east of the Eastern Front, and
Speaker 2: we really thank Mark Champion for joining as well on
Speaker 2: your commute Look first ninety nine to one FM in Washington,
Speaker 2: Up the Corridor, Bloomberg eleven three to zero in New York,
Speaker 2: and of course ninety two nine FM in Boston. Across
Speaker 2: the nation, among others on Apple CarPlay and serious XM
Speaker 2: in your Office. Subscribe to Bloomberg Podcasts out on YouTube
Speaker 2: on YouTube podcast. This is single best idea.