WEBVTT - Bloomberg Markets Special Simulcast Day Three 0:00:01.800 --> 0:00:04.400 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanebeck. We're here every day bringing 0:00:07.280 --> 0:00:09.799 you the latest news from the world of business and finance, 0:00:09.840 --> 0:00:13.600 plus technology, politics, economics, all furnessing the power of Business 0:00:13.640 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.120 --> 0:00:19.600 analyst in more than one and twenty countries. You can 0:00:19.640 --> 0:00:23.200 download Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.120 You can also listen to our radio show at two 0:00:25.160 --> 0:00:27.840 pm Eastern Time on Bloomberg Radio or watch us on 0:00:27.880 --> 0:00:38.640 YouTube search Bloomberg Global News. Just about two pm here 0:00:38.680 --> 0:00:41.640 in New York. This is Bloomberg Market Special markets coverage 0:00:41.800 --> 0:00:45.200 on this day and all week, as simulcast on Bloomberg Radio, 0:00:45.280 --> 0:00:48.239 Bloomberg TV, and on YouTube. We welcome all of our 0:00:48.240 --> 0:00:51.680 audiences across all of our platforms. Here Romaine Bostick, alongside 0:00:51.800 --> 0:00:54.120 Kritty Gupta and Tim Stanebek. We're gonna be walking you 0:00:54.160 --> 0:00:56.440 through all the markets as we count you down to 0:00:56.480 --> 0:00:58.720 the closing bell in just about two hours from now. 0:00:58.760 --> 0:01:01.639 Looking at SMP five, find basically unchanged on the day. 0:01:01.680 --> 0:01:03.480 It has been a good portion of the day, down 0:01:03.480 --> 0:01:05.800 in the red, now starting to tick into the green 0:01:05.840 --> 0:01:08.280 here forty seven ninety right now, up about a tenth 0:01:08.319 --> 0:01:10.600 of a percent the Dow Jones industrial laverage. If you're 0:01:10.600 --> 0:01:12.640 looking for a bright spot, that's where you're gonna find it. 0:01:12.680 --> 0:01:14.959 Thirty six thousand and four ninety if you're counting, that 0:01:15.000 --> 0:01:16.720 would be a record high. If it were to close 0:01:16.760 --> 0:01:18.840 at that level, up about two tents of a percent. 0:01:19.000 --> 0:01:21.600 You're to year yield drifting slightly lower here but still 0:01:21.640 --> 0:01:24.240 camped out at around seventy five basis points. And as 0:01:24.240 --> 0:01:26.040 far as some of the other risk assets out there, 0:01:26.240 --> 0:01:28.440 including bitcoin, you can call it flat on the day 0:01:28.520 --> 0:01:31.640 forty seven thousand, five forty six as measured by Bloomberg 0:01:31.680 --> 0:01:35.479 pricing relatively unchanged here on the day Wednesday here, uh, 0:01:35.640 --> 0:01:38.680 the third day of of the only three days left here, 0:01:38.680 --> 0:01:42.280 I should say, in uh the year for trading. All right, 0:01:42.319 --> 0:01:44.520 Let's go straight to our first guest, Timcreaty gonna be 0:01:44.560 --> 0:01:46.720 joining us in just a second. Here. We want to 0:01:46.720 --> 0:01:48.640 bring in our C Peck. He's joining us right now 0:01:49.000 --> 0:01:51.600 from Fearless Wealth Core. P is the c I O 0:01:51.600 --> 0:01:54.520 over there. R C. Great to have you here. Uh. 0:01:54.560 --> 0:01:57.640 You know we've they've been saying all week long. I mean, 0:01:57.680 --> 0:01:59.560 we of course look at the day to day moves, 0:01:59.600 --> 0:02:02.280 but a week long, we've kind of looking back and 0:02:02.320 --> 0:02:05.240 trying to extrapolate, you know, how investors should sort of 0:02:05.280 --> 0:02:10.040 feel about coming off these just phenomenal gains, gains that 0:02:10.160 --> 0:02:12.720 to some extent we're kind of unlikely. And I'm wondering 0:02:12.760 --> 0:02:17.320 just how optimistic you are about the next year. I mean, 0:02:17.400 --> 0:02:20.400 from a stock market point of view, I am very optimistic. 0:02:20.520 --> 0:02:23.520 The market sees what the Fed is doing, It is 0:02:23.560 --> 0:02:27.440 digesting it actually quite fast. Um. I love the Nasdaq 0:02:27.480 --> 0:02:30.239 one hundred. It continues to do well. It's a little 0:02:30.320 --> 0:02:33.040 under the SMP five hundred this year, but really I 0:02:33.040 --> 0:02:35.400 think is gonna be a great year, and it's gonna 0:02:35.400 --> 0:02:37.400 probably put off a lot of people because it will 0:02:37.440 --> 0:02:39.520 be such a good year. So are so you think 0:02:39.520 --> 0:02:46.080 the NASDAC outperform the SMP five hundred. I do absolutely 0:02:46.200 --> 0:02:49.079 What what what will drive those gains? So one of 0:02:49.080 --> 0:02:51.280 the things I looked at is what happens to the 0:02:51.440 --> 0:02:54.920 SMP five and the NASTIC one hundred when the Fed 0:02:55.080 --> 0:02:59.480 keeps their balance balance sheet flat or slightly down, and 0:02:59.560 --> 0:03:02.480 the lear winner is actually the Nastic one D it 0:03:02.560 --> 0:03:05.880 loves when the FED keeps its balance sheet flat. So 0:03:05.919 --> 0:03:07.760 we can only go with what's happened. Of course I 0:03:07.760 --> 0:03:11.280 could be wrong, UM, but I'm going with what what 0:03:11.400 --> 0:03:15.040 index loves a flat balance sheet? R C. Let's talk 0:03:15.040 --> 0:03:16.920 about what's in the index now, of course, is going 0:03:16.960 --> 0:03:18.720 to be the majority of tech. I really want to 0:03:18.720 --> 0:03:21.359 ask you, though, what kind of role is tech playing 0:03:21.360 --> 0:03:23.440 in this? Is it a haven? Is it an inflation hedge? 0:03:23.560 --> 0:03:26.520 Isn't your classic growth play or perhaps a value plays 0:03:26.560 --> 0:03:29.200 kind of like keep peace of someone's portfolio. What role 0:03:29.240 --> 0:03:33.080 does tech play? It's a fair question to ask because 0:03:33.880 --> 0:03:36.360 of the Nasteck one hundred is quote unquote tech, right, 0:03:36.440 --> 0:03:39.720 and the S and P is Tech. So tech is 0:03:39.760 --> 0:03:43.760 eating the world right. The largest staples company is tech, Amazon, 0:03:43.800 --> 0:03:47.320 the largest communication company is tech, and the second largest 0:03:47.320 --> 0:03:51.320 communication company is tech, Google and Facebook. So I we 0:03:51.360 --> 0:03:54.680 almost have to think of a new way or to 0:03:54.800 --> 0:03:57.480 think about what tech is. It's it's eating the world 0:03:58.120 --> 0:03:59.880 if you're in the United States. We're lucky in the 0:04:00.040 --> 0:04:03.480 fact that most of these just major major companies are 0:04:03.560 --> 0:04:06.280 in and based in the US. UM. And I think 0:04:06.280 --> 0:04:10.160 it's going to continue happening because, especially with the pandemic. 0:04:10.200 --> 0:04:13.960 It's accelerated the reach of technology companies. I can talk 0:04:14.000 --> 0:04:16.080 a little bit here about I guess how you structure 0:04:16.200 --> 0:04:18.800 or portfolio in this environment. We talk a lot, of 0:04:18.839 --> 0:04:20.320 course about how I guess you could have just kind 0:04:20.320 --> 0:04:22.440 of ridden the coattails of tech. But that's not gonna 0:04:22.480 --> 0:04:24.479 work forever. In the old days, and some of us 0:04:24.520 --> 0:04:26.719 are old enough to remember when you know you could actually, 0:04:26.720 --> 0:04:28.920 you know, buy bonds and that would actually give you 0:04:28.960 --> 0:04:31.400 some sort of return. That's not happening anymore, at least 0:04:31.480 --> 0:04:34.719 not on a nominal basis, on a real basis. Excuse me, 0:04:34.839 --> 0:04:38.000 I am curious as to whether, as folks sort of 0:04:38.040 --> 0:04:40.840 look at their portfolio going forward, whether there's a strategy 0:04:40.880 --> 0:04:43.360 they can take where they can sort of participate, I guess, 0:04:43.400 --> 0:04:45.400 and whatever sort of run up we do get in 0:04:45.560 --> 0:04:48.200 the riskier assets, but still find a way to sort 0:04:48.240 --> 0:04:53.599 of protect themselves when that eventually falters. You know, there's 0:04:53.600 --> 0:04:56.080 probably two ways you could go about that. Um One 0:04:56.120 --> 0:04:59.719 would be there is one bond that's doing well in 0:04:59.720 --> 0:05:03.400 place you protected treasuries, tips they're doing well. They're basically 0:05:03.480 --> 0:05:06.560 the only type of bond that is doing well right now. 0:05:07.120 --> 0:05:11.160 So if someone wanted a non equity, lower volatile asset. 0:05:12.000 --> 0:05:16.040 Looking at the tips is a very fair simple investment 0:05:16.200 --> 0:05:20.200 type of asset to add to the portfolio. The other is, 0:05:20.240 --> 0:05:22.520 and I don't know how heretical this sounds to people, 0:05:23.040 --> 0:05:25.560 but to own the index that is winning and has 0:05:25.560 --> 0:05:29.440 been winning for one twenty years, which is the nasdeck 0:05:30.080 --> 0:05:35.160 but or nastic one, but place some stop losses on it, right, 0:05:35.200 --> 0:05:37.240 So maybe you cut out of a quarter of your 0:05:37.240 --> 0:05:41.960 position if it closes down from peak high to low. Right, 0:05:41.960 --> 0:05:44.480 So you could use it that way and you'd still 0:05:44.480 --> 0:05:46.599 get the upside, but you could start to lower the 0:05:46.640 --> 0:05:49.320 volatility and the downside by having some kind of circuit 0:05:49.360 --> 0:05:52.960 breakers there. When it comes to equities, I know one 0:05:53.000 --> 0:05:56.280 company that you're bullish on is PayPal, despite the fact 0:05:56.320 --> 0:06:00.240 that it's down from its peak just a few months 0:06:00.240 --> 0:06:02.600 ago over the summer. What makes you so bullish on 0:06:02.640 --> 0:06:06.680 the company. I don't think it's going anywhere. It's you know, 0:06:06.720 --> 0:06:10.479 over two billion um. Clearly it had had a double top. 0:06:10.480 --> 0:06:12.400 If you look at a price chart it you know 0:06:12.480 --> 0:06:15.320 it's it's in a correction phase, ites down intra a 0:06:15.440 --> 0:06:19.960 day from the top to the bottom. It is adopting 0:06:20.000 --> 0:06:23.159 crypto it is moving in that direction. It has Venmo, 0:06:23.200 --> 0:06:26.280 which is moving faster in that direction. It is absolutely 0:06:26.320 --> 0:06:32.159 taking a hit along with other growth slash crypto leaning equities. 0:06:32.839 --> 0:06:34.960 And I don't think it's a close your eyes and buy, 0:06:35.160 --> 0:06:37.840 but I think if it breaks and stays above two, 0:06:38.920 --> 0:06:42.080 putting three of your money in it is a very 0:06:42.240 --> 0:06:47.520 good upside, you know, managed downside individual stock our c 0:06:47.720 --> 0:06:49.880 Let's talk a little bit about what's going on outside 0:06:49.880 --> 0:06:51.400 of the stock market, and that of course brings me 0:06:51.440 --> 0:06:53.880 to commodities. You mentioned cryptocurrencies for a second, but I 0:06:53.880 --> 0:06:55.839 want to go to another currency we're looking at, which 0:06:55.839 --> 0:06:57.960 is gold. I guess it's a commodity currency, whatever you 0:06:57.960 --> 0:07:01.279 wanna call it. Gold really needs to kind of respond 0:07:01.360 --> 0:07:03.440 to what's going on on the inflation front, on the 0:07:03.440 --> 0:07:07.120 fed front. Why is it not doing anything? Yeah, I 0:07:07.120 --> 0:07:12.200 completely agree. For sixteen months it's been trending down. Um, 0:07:12.240 --> 0:07:15.080 there's a couple of reasons. One maybe if you're over sixty, 0:07:15.200 --> 0:07:19.080 you still believe that gold is the hedge for inflation, 0:07:19.200 --> 0:07:22.720 for money printing, for balance sheet changes. But if you're 0:07:22.880 --> 0:07:26.640 under fifty, you're not looking at gold the same way anymore. 0:07:26.760 --> 0:07:29.800 So I think gold has lost a lot of its buyers, 0:07:29.920 --> 0:07:32.760 and has those buyers have moved to other assets. I 0:07:32.760 --> 0:07:34.480 think that's one of the biggest things. Now, Look, if 0:07:34.480 --> 0:07:37.280 it starts moving up, let's buy it. But if there 0:07:37.360 --> 0:07:40.400 was ever an environment for gold to move higher, it 0:07:40.440 --> 0:07:43.360 would have been the last sixteen months, and it hasn't. Yeah, 0:07:43.440 --> 0:07:46.680 and now you're staring down a potentially uh some degree 0:07:46.680 --> 0:07:48.880 of great normalization that could take some of the bloom 0:07:48.920 --> 0:07:50.880 off of that rose further. Here, a lot of those 0:07:50.880 --> 0:07:53.200 folks who would normally turn to gold in this environment 0:07:53.640 --> 0:07:56.000 r C i'll have turned to cryptocurrencies here. What do 0:07:56.040 --> 0:07:57.560 you say to folks who come to you and say 0:07:57.920 --> 0:08:01.880 how much should I allocate? Well, I find just find 0:08:01.920 --> 0:08:04.480 out volatility that can handle in a maybe a five 0:08:04.600 --> 0:08:07.360 or ten percent of their portfolios. So let's just take 0:08:07.360 --> 0:08:09.880 ten on the big end. Someone has a million dollars 0:08:09.920 --> 0:08:12.600 and we put ten percent into crypto. First of all, 0:08:12.600 --> 0:08:14.960 I'm probably gonna put in one of the big five cryptos, 0:08:15.000 --> 0:08:17.320 and I'm going to say to them, expect this to 0:08:17.440 --> 0:08:19.680 either be cut in half and then you have to, 0:08:19.960 --> 0:08:21.920 you know, bring it back up to ten percent, or 0:08:22.000 --> 0:08:25.480 don't be surprised if it doubles or triples and then 0:08:25.520 --> 0:08:28.200 after a year we rebalance it back down. So to 0:08:28.200 --> 0:08:31.680 answer your question, I think an annual rebouncing is going 0:08:31.720 --> 0:08:34.880 to allow that you know, that bug called volatility to 0:08:34.920 --> 0:08:37.120 be turned into a feature, and then I think it 0:08:37.160 --> 0:08:39.559 can be something that's not only survivable, but can I 0:08:39.600 --> 0:08:42.880 actually help your portfolio. R C. Peck, big thank you 0:08:42.920 --> 0:08:46.000 to you for joining us, the CEO of Fearless Wealth, 0:08:46.200 --> 0:08:48.679 thanks so much for taking the time. What is Tim 0:08:48.720 --> 0:08:52.199 Stead of Creedy, Gupta and Romaine. You own gold, Tim 0:08:52.200 --> 0:09:03.120 you're under This is Bloomberg Market's a special coverage edition 0:09:03.200 --> 0:09:05.839 here all week long, of course, Uh, welcome in and 0:09:05.880 --> 0:09:08.520 all of our audiences across all of our platforms Bloomberg TV, 0:09:08.679 --> 0:09:11.760 Bloomberg Radio, YouTube, Romain Boston Creaty Group to Temps Stanegg. 0:09:11.840 --> 0:09:14.040 Keep an eye right now on the commodities market settlement 0:09:14.080 --> 0:09:16.760 of NIMEX screwed features coming in right now above seventy 0:09:16.840 --> 0:09:18.640 six dollars a barrel. We should point out we did 0:09:18.679 --> 0:09:20.360 get that e I A data a little bit earlier 0:09:20.360 --> 0:09:22.360 today at three and a half million barrel drop in 0:09:22.360 --> 0:09:25.480 the most recent week in US inventories. That's providing a 0:09:25.480 --> 0:09:27.600 little bit of a boost here. Unfortunately, you're also seeing 0:09:27.600 --> 0:09:29.520 a little bit of a boost and gasoline futures if 0:09:29.559 --> 0:09:31.720 you're paying at the pump there. Keeping an eye here 0:09:32.040 --> 0:09:33.880 on cotton as well, we're actually seeing a lot of 0:09:34.240 --> 0:09:36.440 pressures not only on the supply side, but on the 0:09:36.440 --> 0:09:39.080 demand side as well. That continues to underpin what's shaping 0:09:39.160 --> 0:09:42.120 up to be on a phenomenal year for copper futures. 0:09:42.440 --> 0:09:44.480 If you're an investor, if you're an a buyer, that's 0:09:44.480 --> 0:09:47.040 not necessarily working out right now, And I want to 0:09:47.040 --> 0:09:49.400 bring your attention for our viewers here to the third 0:09:49.400 --> 0:09:51.800 line of your screen on coffee futures right now, US 0:09:51.880 --> 0:09:54.080 camped out right around to twenty eight year, up about 0:09:54.200 --> 0:09:56.840 one and a half percent here on the day. Based 0:09:56.880 --> 0:09:58.640 on the games that we have today, we're now up 0:09:58.640 --> 0:10:02.800 something like seventy percent, so that surpasses that seventy run 0:10:02.840 --> 0:10:04.640 we had in two thousand and ten, and that's now 0:10:04.679 --> 0:10:07.240 setting us up for what could be the biggest annual 0:10:07.280 --> 0:10:09.000 game that we've seen on a rabbit of beans, at 0:10:09.040 --> 0:10:12.680 least in the futures market. Going back to a new 0:10:12.760 --> 0:10:15.320 data out new reporting out right now by e comp 0:10:15.360 --> 0:10:18.679 Trading saying that world production may actually slide in two 0:10:18.720 --> 0:10:21.440 which of course could underpin prices further. Guys, So basically 0:10:21.480 --> 0:10:24.240 everything in the commodity space higher here. If you're buying oil, 0:10:24.280 --> 0:10:27.120 you're buying gas, you're buying coffee, you're buying cotton. Eggs 0:10:27.160 --> 0:10:29.800 even gone up, Tim, I'm told hopefully wine doesn't go 0:10:29.880 --> 0:10:31.440 up as well. Yeah, that's the question. I mean, you're 0:10:31.440 --> 0:10:33.720 talking about coffee, but I'm thinking about wine. Because joining 0:10:33.760 --> 0:10:36.920 us right now is Alex Ryan Duckhorn Portfolio, President, CEO 0:10:37.040 --> 0:10:40.959 and chairman. Duck Horn Portfolio produces luxury wine and spirits. 0:10:40.960 --> 0:10:45.960 It includes Decoy, Postmark, Klera, Canvas Back and more wine brands. Alex, 0:10:45.960 --> 0:10:49.040 thanks so much for joining us. You went public earlier 0:10:49.080 --> 0:10:52.200 this year. Shares are up more than fift since going public, 0:10:52.200 --> 0:10:55.200 though slightly off of a June peak. Give us an 0:10:55.240 --> 0:10:57.679 update on on how holiday sales were. Were they strong? 0:10:58.400 --> 0:11:01.040 All day sales are really strong. Thank you. UM. We've 0:11:01.040 --> 0:11:03.920 been working to get the UH supply chain set up. 0:11:03.960 --> 0:11:06.640 We were our partners were prepared for all of our 0:11:06.760 --> 0:11:08.880 some new innovations and our in our in our standard 0:11:08.960 --> 0:11:12.959 traditional mix and people love luxury wine UM for a 0:11:13.040 --> 0:11:15.440 lot of reasons. It's very traditional. Pulling out of the 0:11:15.440 --> 0:11:20.679 pandemic celebrating a challenging year. UH sales were excellent during 0:11:20.679 --> 0:11:22.920 the holidays. We expect that to continue into the new year. 0:11:23.760 --> 0:11:26.160 Let's talk about supply chain issues for a second one. 0:11:26.320 --> 0:11:28.720 Have you had any into how might you be dealing 0:11:28.720 --> 0:11:32.320 with them? We really haven't seen a significant impact. I 0:11:32.360 --> 0:11:34.240 know it's a it's a it's a very hot topic 0:11:34.360 --> 0:11:37.760 right now. On the incoming supply we're able to get wonderful, 0:11:37.800 --> 0:11:40.600 wonderful grapes from throughout California and the state of Washington 0:11:40.640 --> 0:11:44.360 where we're centered in those two wine growing regions, and 0:11:44.400 --> 0:11:46.000 we've been able to get the grapes we need, so 0:11:46.080 --> 0:11:48.880 kind of the incoming supply chain has has been managed 0:11:49.000 --> 0:11:50.480 very very well, and I'm confident that we're going to 0:11:50.600 --> 0:11:53.760 continue to have enough luxury wine to sell into the future. 0:11:54.200 --> 0:11:56.480 On the on the distribution side, you know, with a 0:11:56.640 --> 0:12:01.200 very diversified distribution platform with some really really good partners, 0:12:01.440 --> 0:12:03.960 and that diversification has allowed us to make sure that 0:12:04.040 --> 0:12:06.800 all the wines people want hit the market when they 0:12:06.840 --> 0:12:10.440 want them, especially around this critical fault period. So very 0:12:10.520 --> 0:12:13.000 few disruptions on our side, and it's really due to 0:12:13.040 --> 0:12:15.240 the diligent work of a of a wonderful staff. I 0:12:15.280 --> 0:12:17.800 have Alex talk a little bit about the quality of 0:12:17.840 --> 0:12:19.120 some of the grapes that you're getting. There was a 0:12:19.160 --> 0:12:22.319 lot of concern, particularly in nineteen last year and to 0:12:22.360 --> 0:12:25.160 a certain extent this year about some of the wildfires 0:12:25.160 --> 0:12:27.079 and some of the smoke and how that may or 0:12:27.120 --> 0:12:29.600 may not have affected some of the crops at least 0:12:29.600 --> 0:12:32.360 coming out of some of the Napa California regions. Here. 0:12:32.920 --> 0:12:35.600 With the latest harvest that we've gotten, the latest vintages here, 0:12:35.920 --> 0:12:38.560 how much assurance is do you have right now that 0:12:38.600 --> 0:12:40.520 what you got? I guess, uh, for lack of a 0:12:40.520 --> 0:12:44.040 better phrase, taste good. Because we're really good at what 0:12:44.080 --> 0:12:47.040 we do. For forty years, we make luxury wine. And 0:12:47.320 --> 0:12:51.920 the recent harvest, the harvest was not fire affected, uh, 0:12:51.920 --> 0:12:55.959 and we had a really great growing season. Um uh. 0:12:56.040 --> 0:12:59.240 So we're very fortunate that respect again the diversifications the 0:12:59.320 --> 0:13:02.520 name of the store for what we do to preserve 0:13:02.720 --> 0:13:06.200 the customer's best interest. So through that diversification, we're able 0:13:06.200 --> 0:13:08.480 to get the great quality and the great styles that 0:13:08.520 --> 0:13:11.120 we that we need to continue to make great wine. 0:13:11.200 --> 0:13:13.840 And so I can assure you as you asked, that 0:13:13.920 --> 0:13:16.360 they vantage is going to hit the mark and then 0:13:16.440 --> 0:13:19.240 some for this year. Alex, I know that you said 0:13:19.280 --> 0:13:21.880 that you've been able to navigate supply chain challenges pretty well. 0:13:21.920 --> 0:13:24.320 But look, you're gonna have to pay more for shipping 0:13:24.360 --> 0:13:28.400 if gasoline prices continue to go higher. Uh, wages, we 0:13:28.440 --> 0:13:31.560 all know what's happening with it with wages. Price increases 0:13:31.600 --> 0:13:35.000 for are you gonna have to make them? Uh? No, 0:13:35.080 --> 0:13:37.480 We're not gonna force to make them. We're a luxury product, 0:13:37.520 --> 0:13:41.360 as you know, a luxury premium price wine products, so 0:13:41.559 --> 0:13:46.439 um um. Traditional and planned price increases are kind of 0:13:46.480 --> 0:13:49.360 built into our long term plan and we're thinking the 0:13:49.400 --> 0:13:51.280 long term. That's kind of what the wine business about. 0:13:51.640 --> 0:13:55.319 So we will have and execute scheduled price increases accordingly. 0:13:55.559 --> 0:13:57.640 But I don't think you're gonna find up being reactionary 0:13:57.679 --> 0:13:59.520 to the market. That's just not fair to the consumer, 0:13:59.800 --> 0:14:02.000 and so we'll be very measured to how we approach that. 0:14:02.280 --> 0:14:04.520 But we do have pricing increases that you would expect 0:14:04.679 --> 0:14:07.080 over the next several years built in the long term plan. 0:14:07.160 --> 0:14:09.360 But again, we're not gonna We're not gonna do anything 0:14:09.640 --> 0:14:12.560 rash or or or a reactionary Alex. At the end 0:14:12.559 --> 0:14:15.560 of the day, wine is a luxury product has been 0:14:15.559 --> 0:14:19.120 a fantastic year when it comes to just luxury sales broadly, 0:14:19.120 --> 0:14:22.240 when it comes to wine or clothing or other luxury goods. 0:14:22.280 --> 0:14:24.120 I wonder, though, how much of that is going to 0:14:24.160 --> 0:14:27.800 continue into two. Do you see that's the momentum really 0:14:27.800 --> 0:14:32.080 sustaining into the new year? I do. That's the best 0:14:32.160 --> 0:14:35.080 question of the day. I do you know, Um, we've 0:14:35.080 --> 0:14:37.960 been taking share now for the last several years and 0:14:38.080 --> 0:14:40.720 starting to pay back wonderful dividends. People are getting exciting 0:14:40.760 --> 0:14:44.400 about our brand or divertified brand and portfolio. I think 0:14:44.480 --> 0:14:48.880 wine is a wine's a celebratory lifestyle, if you will, 0:14:48.920 --> 0:14:51.240 and I think people not only want that, but need that, 0:14:51.320 --> 0:14:54.560 and historically that's proven true. So I think that the 0:14:54.680 --> 0:14:58.760 interest in wine, especially domestic California of West Coast United 0:14:58.760 --> 0:15:01.080 States wine is going to continue. UM. I think the 0:15:01.120 --> 0:15:04.040 shares we've taken uh in in in market games over 0:15:04.040 --> 0:15:06.400 the last several years are starting to pay off. And 0:15:06.440 --> 0:15:09.360 I think people want to celebrate with friends and family 0:15:09.680 --> 0:15:11.920 and they want wine to be part of that process. 0:15:11.960 --> 0:15:14.640 So we're encouraged and we think that that that trend 0:15:14.720 --> 0:15:16.760 is going to continue into the new year and beyond. 0:15:17.760 --> 0:15:20.080 All right, great stuff, Alex, I really appreciate and you 0:15:20.200 --> 0:15:22.240 catch up with us. Alex Ryan there, of course, the 0:15:22.280 --> 0:15:31.320 CEO and chairman of the dark Horn portfolio. This is 0:15:31.320 --> 0:15:34.840 Bloomberg Market Special coverage all week long, a global simulcast 0:15:34.880 --> 0:15:37.880 Bloomberg TV, radio and YouTube. We welcome all of our 0:15:37.920 --> 0:15:41.240 audiences across all of our platforms here, Romaine Bosti, Crety 0:15:41.240 --> 0:15:43.880 Grouped Attempt Stentovic here, keep an eye on the markets. 0:15:43.960 --> 0:15:46.560 Basically a sideways day here for the SMB five hundred, 0:15:46.720 --> 0:15:48.720 the Dow actually trading at a record high. As far 0:15:48.720 --> 0:15:51.200 as some of the individual movers. You're seeing Apple slightly 0:15:51.280 --> 0:15:53.480 higher here on the day, but not really getting a 0:15:53.480 --> 0:15:56.080 whole lot of juice here. Tesla shares also moving higher 0:15:56.160 --> 0:15:58.120 by about four tenths of represent one of the big 0:15:58.160 --> 0:16:00.680 decliners today is actually Too Simple. That's company of course 0:16:00.800 --> 0:16:04.520 that makes these uh sort of technology for self driving trucks. 0:16:04.600 --> 0:16:06.440 Here the shares have been higher on the day, but 0:16:06.440 --> 0:16:09.680 they've actually flipped here in ABC slightly up marisource Burg 0:16:09.720 --> 0:16:11.880 and I should point out slightly higher here up about 0:16:12.000 --> 0:16:14.400 six tents of a percent and pretty You know, when 0:16:14.440 --> 0:16:16.040 you look at this market and you talk about how 0:16:16.080 --> 0:16:18.600 phenomenal of a trading year that we've had here, and 0:16:18.600 --> 0:16:20.640 then you look at out of the tamp down in 0:16:20.640 --> 0:16:22.360 this final week of the year. Is there anything that 0:16:22.400 --> 0:16:25.200 we can read into that as we move into well, 0:16:25.200 --> 0:16:27.320 you know, it's interesting that the investor base really kind 0:16:27.320 --> 0:16:29.600 of took the Santa rally for granted that no worries 0:16:29.720 --> 0:16:31.960 will just kind of be in cruise control for this 0:16:32.040 --> 0:16:34.040 last week of the year, and yet you are seeing 0:16:34.120 --> 0:16:36.520 hurdles that record high on Monday, but romains since then, 0:16:36.680 --> 0:16:39.600 Marcuts have been under pressure. Yeah, they certainly have um, 0:16:39.640 --> 0:16:42.160 but you know, under pressure and kind of relatively small moves, 0:16:42.240 --> 0:16:43.800 especially compared to what we've seen for much of the 0:16:43.880 --> 0:16:46.640 year and then what we've seen on Monday and last week. 0:16:46.640 --> 0:16:48.200 But if you open up the hood of the SMP 0:16:48.320 --> 0:16:52.000 five on either side, you do have some stocks making 0:16:52.040 --> 0:16:54.880 big moves. I mean Home Depot, you have Procter and Gamble, 0:16:54.960 --> 0:16:57.760 you have Micron all to the plus side, and then 0:16:58.080 --> 0:17:00.880 laggards include Amazon and Video Facebook, so tech really weighing 0:17:00.920 --> 0:17:03.240 down those gains that were pop Quiz him, what's the 0:17:03.240 --> 0:17:06.200 best performing SNP stock this month. I'm gonna stay Home 0:17:06.200 --> 0:17:10.840 Depot group just because of that, just because of the acquisition. 0:17:10.840 --> 0:17:12.600 All right, let's see, I'm gonna give Abigail do a 0:17:12.560 --> 0:17:14.800 little all right, she's standing by all right now with 0:17:14.880 --> 0:17:16.959 the up broader. Look at what's going on in the market, Abigail, 0:17:17.000 --> 0:17:19.280 what are you watching? Well, Roman, I'm watching that sideways 0:17:19.320 --> 0:17:22.200 action that you were talking about. Investors basically treading water 0:17:22.280 --> 0:17:24.800 in this final week of trading, and of course volume 0:17:24.880 --> 0:17:27.720 super light fort below the twenty day moving average to 0:17:27.760 --> 0:17:29.840 a lot of folks not at their desks, whether in 0:17:29.840 --> 0:17:32.680 the office or at home, and the NAZAC over the 0:17:32.760 --> 0:17:35.000 last two days is underperforming just a little bit. A 0:17:35.000 --> 0:17:36.439 lot of those big names that you guys were just 0:17:36.480 --> 0:17:40.840 talking about, Amazon, Google Meta are lower. However, the reason 0:17:40.920 --> 0:17:42.119 that we seem to be having a little bit of 0:17:42.119 --> 0:17:45.240 a pop here Biogen up about ten percent. Of course, 0:17:45.359 --> 0:17:49.359 on that Korean report that UH Samsung could possibly be 0:17:49.400 --> 0:17:51.200 doing a takeover. Sort of interesting because that would be 0:17:51.240 --> 0:17:54.160 a completely new vertical but definitely giving life to the NAZAC, 0:17:54.280 --> 0:17:57.040 which has been mainly lower all day and right now 0:17:57.119 --> 0:17:59.920 flipping between small gains and losses, but at least there's 0:17:59.920 --> 0:18:02.720 a gain there, and the SMP five hundred being helped 0:18:02.760 --> 0:18:06.560 to a seventieth record close, potentially, Fabio, what is holding 0:18:06.640 --> 0:18:08.720 the market back? We saw that record high on Monday. 0:18:08.720 --> 0:18:10.880 Why are we not just hitting record highs every day 0:18:10.880 --> 0:18:13.439 since then? You know? Creaty. I think that when you 0:18:13.480 --> 0:18:15.800 have a year where the SMP five dred is up 0:18:15.800 --> 0:18:18.920 almost twenty already year to date, up for a third 0:18:19.480 --> 0:18:22.240 year in a row, the third the seventh double digit 0:18:22.359 --> 0:18:25.360 year UH in the last ten years. The fact that 0:18:25.400 --> 0:18:28.320 you have a small pullback from that record high and Monday, 0:18:28.359 --> 0:18:30.600 it's not really too too big of a deal. Again, 0:18:30.680 --> 0:18:33.120 not a lot of folks at their desks right now. 0:18:33.440 --> 0:18:35.919 And Tech, even though it's a little bit weak today, 0:18:35.960 --> 0:18:39.480 it's been a real UH standout up thirty on the year, 0:18:39.480 --> 0:18:42.520 and one reason the earnings growth for this fourth quarter 0:18:42.600 --> 0:18:45.560 expected to be very strong, around twenty seven percent. So 0:18:45.600 --> 0:18:48.040 I think that there aren't any problems that investors are 0:18:48.040 --> 0:18:49.680 looking at right now. It's just a lot of the 0:18:49.720 --> 0:18:51.960 fact that a lot of people may not even actually 0:18:51.960 --> 0:18:54.640 be in their seats. Oh don't say that, Abigail, Abigail, 0:18:54.720 --> 0:18:56.600 do a little there before she's in her seats. Meet 0:18:56.600 --> 0:18:59.840 Tim and Cretty. We're here. We're not going anywhere on 0:18:59.880 --> 0:19:02.720 the SMP five hundred. Jo's industrial lavage at thirty six 0:19:02.960 --> 0:19:05.040 five eleven. That is a record high if it holds 0:19:05.040 --> 0:19:07.560 into the clothes joining us right now, Paul Christopher, head 0:19:07.560 --> 0:19:11.400 of Global market Strategy for Wells Fargo Investment Institute. Paul, 0:19:11.680 --> 0:19:14.200 let's look ahead to two. We've done all these surveys 0:19:14.200 --> 0:19:17.280 at Bloomberg and other banks have done surveys basically saying 0:19:17.320 --> 0:19:21.520 the biggest risk right now is a FED policy error 0:19:21.640 --> 0:19:25.160 of some sort. Here. Does that worry you? It does 0:19:25.600 --> 0:19:28.520 the market, and and the FED actually themselves in their 0:19:28.560 --> 0:19:31.960 survey looking at three or four rate hikes, we think 0:19:32.000 --> 0:19:35.439 that's unlikely. We're expecting one or two, as we do 0:19:35.600 --> 0:19:39.199 think that inflation will moderate as the year progresses, and 0:19:39.240 --> 0:19:41.280 that will let the FED off the hook for those 0:19:41.280 --> 0:19:44.439