Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Single best idea is
Speaker 1: that every day we try to have an eclectic set
Speaker 1: of conversations. I'm not going to mince words. Sometimes we fail.
Speaker 1: We do that, we take risks, we take challenges, and
Speaker 1: sometimes it doesn't work out. Today was one of those
Speaker 1: days where everything was clicking top to about him lebby Kentroll.
Speaker 1: Let me get to that in a moment. Jim Caaren
Speaker 1: first from Morgan Stanley, and he was absolutely brilliant on
Speaker 1: the partial differentials of equities to bonds, really sophisticated conversation
Speaker 1: with a physicist from Morgan Stanley.
Speaker 2: So it really becomes a question of how you diversify
Speaker 2: across the equity market. So clearly you want to have
Speaker 2: some growth, you want to have some value. You also
Speaker 2: want to have some high quality and defensives mixed in
Speaker 2: there too. The reality though, is that you can still
Speaker 2: use bonds as a hedge, but you should have less
Speaker 2: than index duration in your bond portfolio. So I think
Speaker 2: that most people are making is that they say that
Speaker 2: their neutral allocation of fixed income is just to be
Speaker 2: neutral the index and just to have the same duration
Speaker 2: as the index. I would argue that having about a
Speaker 2: year's less one year less of duration in your fixing
Speaker 2: car portfolio would do a better job at hedging gear
Speaker 2: overall your overall equity exposure.
Speaker 1: Jim Careen there with an institutional chat. But to make clear,
Speaker 1: the idea of bringing in your duration is the amount
Speaker 1: of time of your average bond and your average portfolio,
Speaker 1: and that timeline issue of how you set up your
Speaker 1: bond portfolio is a big, big deal. Letty Cantrell with
Speaker 1: this with pimcoh on the government. Her note was completely
Speaker 1: inside baseball about Senate races getting out to the first
Speaker 1: Tuesday of November after techs. The question is where is
Speaker 1: a new kind of Democrat Libby Cantrell of PIMCO.
Speaker 3: There there, Tom, I just feel like they're keeping their
Speaker 3: their heads sort of in the sand right now, but there.
Speaker 3: I mean, look, the new Democrats, the coalition on Capitol
Speaker 3: Hill are sort of the this generation of blue Dogs,
Speaker 3: and you know, admittedly they are more liberal than the
Speaker 3: blue dogs that we used to know, but they're still there.
Speaker 3: And I think that there is this sort of division
Speaker 3: within the Democratic Party right now, sort of a statement
Speaker 3: of the obvious that you know, what wins elections. Is
Speaker 3: it going to be this more sort of centrist Democrat,
Speaker 3: this kind of center left Democrat, or a progressive left
Speaker 3: and I think that is playing at But like the Republicans,
Speaker 3: I think the Democrats have had mixed success in terms
Speaker 3: of who they're running this cycle. You could say that
Speaker 3: Graham Platner and Maine is actually a candidate that does
Speaker 3: seem like he could. He kind of understands the zeitgeist
Speaker 3: of the voters in Maine I want to talk to.
Speaker 3: I want characterized him as a blue dog Democrat, but
Speaker 3: he is a more you know, it's more connected to
Speaker 3: the sort of working class value, traditional working class values
Speaker 3: of the Democratic Party. You know, James tell Rico. He
Speaker 3: sounds good, right. He's a very articulate guy. Love him
Speaker 3: or not like him, or what have you. But he's
Speaker 3: quite progressive. And so I think to your point, is
Speaker 3: he too progressive to win Texas? I would argue probably yes.
Speaker 1: Libby Cantrell of PIMCO on podcasts, We're on Spotify, We're
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