1 00:00:00,800 --> 00:00:04,040 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 2 00:00:04,040 --> 00:00:06,920 Speaker 1: my co host Matt Miller. Every business day we bring 3 00:00:06,960 --> 00:00:11,520 Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along 4 00:00:11,560 --> 00:00:15,600 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,640 --> 00:00:18,479 Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:22,760 Speaker 1: at Bloomberg dot com slash podcast. Let's focus in Matt 7 00:00:22,800 --> 00:00:25,239 Speaker 1: on what we're seeing in Bitcoin in the cryptos, and 8 00:00:25,320 --> 00:00:28,000 Speaker 1: we do that with our good friend, uh, Mike mcglogan. 9 00:00:28,120 --> 00:00:33,040 Speaker 1: He's a strategy commodity strategist at Bloomberg Intelligence. Mike, what 10 00:00:33,080 --> 00:00:35,239 Speaker 1: do you make of the trading here today? I'm just 11 00:00:35,280 --> 00:00:38,239 Speaker 1: looking at my g I P function for bitcoin and 12 00:00:38,280 --> 00:00:41,360 Speaker 1: it it hit thirty thousand and then it bounced right 13 00:00:41,400 --> 00:00:43,560 Speaker 1: back up pretty significantly. What do you make of the 14 00:00:43,560 --> 00:00:46,800 Speaker 1: trading today? I completely agree with Kathy Wood that this 15 00:00:46,880 --> 00:00:50,240 Speaker 1: is a capitulation. It's a market backing up to decent 16 00:00:50,280 --> 00:00:53,880 Speaker 1: support levels in a significantly fundamental boolmarket. So let's look 17 00:00:53,880 --> 00:00:56,200 Speaker 1: at the iteration is going forward. This is more macro 18 00:00:56,280 --> 00:00:58,080 Speaker 1: economic at the moment. At the moment, to me, the 19 00:00:58,120 --> 00:01:00,800 Speaker 1: bigger issue here is mean version in the stock market. 20 00:01:01,040 --> 00:01:03,400 Speaker 1: Bitcoin has just been the high beta indicating it. And 21 00:01:03,400 --> 00:01:04,640 Speaker 1: then you also can see that and the rest of 22 00:01:04,640 --> 00:01:07,120 Speaker 1: the cryptosy're down almost double how much bitcoin is today. 23 00:01:07,280 --> 00:01:10,280 Speaker 1: Look at the iterations going forward. If this document goes 24 00:01:10,319 --> 00:01:12,360 Speaker 1: down and stays down for a while, it's a virtual 25 00:01:12,400 --> 00:01:14,760 Speaker 1: guarantee that there's only one thing the Fed can do. 26 00:01:14,880 --> 00:01:17,560 Speaker 1: They have to buy more bonds. What is that good 27 00:01:17,600 --> 00:01:21,560 Speaker 1: for bonds? Gold and bitcoin? They will be the primary beneficiary. 28 00:01:21,600 --> 00:01:23,760 Speaker 1: So I think the key point Cathy would make made 29 00:01:23,760 --> 00:01:27,240 Speaker 1: about deflationary trends. To me, that's the biggest fact that 30 00:01:27,240 --> 00:01:30,040 Speaker 1: it's really kicking in here. Why is crudel down five percent? 31 00:01:30,120 --> 00:01:32,160 Speaker 1: Because the only thing that's been holding up is this 32 00:01:32,240 --> 00:01:36,000 Speaker 1: writing right rising this this rising tide. Enough the tide 33 00:01:36,040 --> 00:01:38,840 Speaker 1: starting the EBB, we're gonna see who's not wearing clothes, 34 00:01:38,920 --> 00:01:41,440 Speaker 1: and I think it's gonna be bitcoin, golden bonds to 35 00:01:41,520 --> 00:01:45,040 Speaker 1: benefit again. For you know, A key thing to leave 36 00:01:45,080 --> 00:01:46,760 Speaker 1: you on is I think we're gonna look back at 37 00:01:46,800 --> 00:01:50,360 Speaker 1: this and say that that joke coin, that Hustle doage cooin, 38 00:01:50,440 --> 00:01:52,920 Speaker 1: it marked the peak of speculative froth in virtual all 39 00:01:52,960 --> 00:01:57,200 Speaker 1: global markets. What what is driving this talent? Can we 40 00:01:57,240 --> 00:02:01,080 Speaker 1: look across because you can track which wallets are, you know, 41 00:02:01,480 --> 00:02:04,320 Speaker 1: trade in cash. People say it's anonymous, but it's really 42 00:02:04,400 --> 00:02:09,520 Speaker 1: sued pseudonymous. Is there any way to know who's pushing 43 00:02:09,560 --> 00:02:13,200 Speaker 1: these prices down, how it's happening, Well, it's that's um. 44 00:02:13,240 --> 00:02:15,400 Speaker 1: It depends on why you want to know. And and 45 00:02:15,520 --> 00:02:17,040 Speaker 1: one thing, Matt, I've always looked at it from a 46 00:02:17,080 --> 00:02:19,440 Speaker 1: markets guy, beating a new traded pits, I look at 47 00:02:19,760 --> 00:02:22,320 Speaker 1: and that is trying to define exactly who is doing it, 48 00:02:22,360 --> 00:02:25,000 Speaker 1: and wise is less important than figuring out what's the 49 00:02:25,080 --> 00:02:27,079 Speaker 1: purpose and what's going on. And to me, the main 50 00:02:27,120 --> 00:02:30,679 Speaker 1: thing that's really happening this is massive speculative leverage. Long 51 00:02:30,800 --> 00:02:33,000 Speaker 1: is getting hit in their stops. And you know, as 52 00:02:33,040 --> 00:02:35,040 Speaker 1: an ex trader and speeding trading, pitt And traded with 53 00:02:35,120 --> 00:02:37,520 Speaker 1: a lot more leverage in futures. And you see most markets, 54 00:02:37,720 --> 00:02:39,520 Speaker 1: you know, leverages down there in the pay trading pits 55 00:02:40,600 --> 00:02:43,400 Speaker 1: one minimal. You know, have a little sympathy for speculators 56 00:02:43,480 --> 00:02:45,959 Speaker 1: getting stopped up, but oftentimes they mark the peaks and 57 00:02:46,000 --> 00:02:47,960 Speaker 1: the trolls. And that's what I think is happening now. 58 00:02:48,360 --> 00:02:50,120 Speaker 1: And then when you know the dust settles, we're gonna 59 00:02:50,160 --> 00:02:52,320 Speaker 1: see the fundamentals kick in, and that's where I see 60 00:02:52,360 --> 00:02:55,680 Speaker 1: bitcoin versus everything else. Now, theorium is okay, but then 61 00:02:55,680 --> 00:02:58,240 Speaker 1: there's a ten thousand other cryptos. Now we all know 62 00:02:58,320 --> 00:03:00,880 Speaker 1: from the dot com bubble there's pretty good signs of 63 00:03:00,880 --> 00:03:04,560 Speaker 1: speculam excess. But then there's only one digital goal in 64 00:03:04,600 --> 00:03:06,720 Speaker 1: the world going digital. And by the way, Bitcoin still 65 00:03:06,800 --> 00:03:11,560 Speaker 1: up in the year. I guess how much Tesla is down? Matt. 66 00:03:11,639 --> 00:03:16,519 Speaker 1: Can't you picture Mike McGlone in commodities pitch trading? Absolutely? 67 00:03:16,680 --> 00:03:19,359 Speaker 1: I also would love to be there myself. I mean, 68 00:03:19,400 --> 00:03:24,120 Speaker 1: that's those were the days. I wonder if we still 69 00:03:24,160 --> 00:03:26,359 Speaker 1: have the same kind of commodity pits, are the same 70 00:03:26,440 --> 00:03:28,919 Speaker 1: kind of open outcry trading anywhere in the world. Is 71 00:03:28,960 --> 00:03:31,280 Speaker 1: it dead everywhere? It's dead everywhere. But I'd like to 72 00:03:31,280 --> 00:03:33,440 Speaker 1: say the five years I spent in the Chicago Board 73 00:03:33,440 --> 00:03:35,600 Speaker 1: of Trade is more than anything I learned. Isn't an 74 00:03:35,680 --> 00:03:38,200 Speaker 1: m B A c F, A FRM, all these all 75 00:03:38,240 --> 00:03:40,839 Speaker 1: these degrees we get, It's just there's nothing like being 76 00:03:40,880 --> 00:03:44,480 Speaker 1: around five thousand people every day and just knocking around markets. 77 00:03:44,720 --> 00:03:47,200 Speaker 1: This is what fascinates me in terms of what's going 78 00:03:47,280 --> 00:03:50,400 Speaker 1: on right now with bitcoin, because I've seen, you know, 79 00:03:50,520 --> 00:03:53,600 Speaker 1: a crash from a thousand and we we wrote these 80 00:03:53,640 --> 00:03:56,560 Speaker 1: stories about how the masses got pulled in and now 81 00:03:56,600 --> 00:03:58,880 Speaker 1: it's all over and the fat lady has sung and 82 00:03:58,920 --> 00:04:02,400 Speaker 1: I saw the crash. It's seventeen thousand and everyone. We 83 00:04:02,440 --> 00:04:05,640 Speaker 1: wrote stories that said, this is it. We called the game. 84 00:04:05,760 --> 00:04:08,840 Speaker 1: It's over now, and we're doing that again today, which 85 00:04:09,040 --> 00:04:12,800 Speaker 1: makes me sort of simultaneously laugh and and puke to 86 00:04:12,880 --> 00:04:16,200 Speaker 1: some extent. But what I what fascinates me is the 87 00:04:16,240 --> 00:04:20,600 Speaker 1: mechanics of what's happening here. Who's selling? Why are there 88 00:04:20,680 --> 00:04:24,440 Speaker 1: margin stops, you know, our margin calls, um, you know 89 00:04:24,800 --> 00:04:28,240 Speaker 1: forcing this liquidation? Are we seeing any big whales get 90 00:04:28,240 --> 00:04:31,279 Speaker 1: out of um? You know, wallets that haven't moved forever? 91 00:04:31,720 --> 00:04:36,440 Speaker 1: Is this all retail? Is this institutional? Are people selling short? Like? This? 92 00:04:36,520 --> 00:04:39,200 Speaker 1: Is what I wonder about what's going on right now? 93 00:04:39,400 --> 00:04:41,279 Speaker 1: Well that's the key thing, man, And I'd love to 94 00:04:41,279 --> 00:04:44,240 Speaker 1: see people selling short of bull market get backing up 95 00:04:44,279 --> 00:04:48,080 Speaker 1: the good support with fundamentally good drivers. So I think 96 00:04:48,520 --> 00:04:51,760 Speaker 1: that should continue and for a little while. But this 97 00:04:51,800 --> 00:04:54,640 Speaker 1: is how you make bottoms in markets, as fowers who's signed? 98 00:04:54,680 --> 00:04:57,560 Speaker 1: Oftentimes you find that out later when the markets already recovers, 99 00:04:57,520 --> 00:04:58,880 Speaker 1: so it's kind of hard to tell now, but I 100 00:04:58,960 --> 00:05:01,600 Speaker 1: fully expect this is it is the speculat access is 101 00:05:01,640 --> 00:05:04,040 Speaker 1: hitting their stops. And by the way, you know, that's 102 00:05:04,080 --> 00:05:05,800 Speaker 1: oftentimes we used to say that in trading of bits, Hey, 103 00:05:05,800 --> 00:05:07,359 Speaker 1: where's the stops? Because you want to hit them, and 104 00:05:07,360 --> 00:05:08,960 Speaker 1: that's when you know where you get. You run through 105 00:05:08,960 --> 00:05:10,680 Speaker 1: the prices and then you put in the bottom or 106 00:05:10,680 --> 00:05:12,120 Speaker 1: a peak if it's in a bowl market. Right now, 107 00:05:12,200 --> 00:05:14,760 Speaker 1: it's just I think putty near a bottom in a 108 00:05:14,839 --> 00:05:17,320 Speaker 1: bowl market as you just run through these these people 109 00:05:17,320 --> 00:05:19,760 Speaker 1: got a little too bullish around sixty and probably getting 110 00:05:19,800 --> 00:05:22,840 Speaker 1: a little too barrish around thirty. Hey, Mike, you know, 111 00:05:23,120 --> 00:05:27,159 Speaker 1: let's put this technical trading or this capitulation trade aside 112 00:05:27,160 --> 00:05:29,919 Speaker 1: for just a moment. If I'm a fundamental investor, what 113 00:05:29,960 --> 00:05:32,560 Speaker 1: are the next data points I should be focusing on 114 00:05:33,000 --> 00:05:36,400 Speaker 1: for bitcoin? Well, I think the next key thing is 115 00:05:36,680 --> 00:05:38,760 Speaker 1: I think it holds around thirty a douta gets much 116 00:05:38,800 --> 00:05:41,440 Speaker 1: below and then to see how it gravitates. The key 117 00:05:41,480 --> 00:05:43,360 Speaker 1: thing I'm looking at is the macro. How does this 118 00:05:43,480 --> 00:05:46,680 Speaker 1: stock market resun respond to this? Is the stock market 119 00:05:46,760 --> 00:05:49,599 Speaker 1: continues to show just too Maybe you have a normal 120 00:05:49,600 --> 00:05:52,320 Speaker 1: temperacent correction which used to be history. What does that 121 00:05:52,400 --> 00:05:54,760 Speaker 1: mean for the iterations from the macro And to me, 122 00:05:54,839 --> 00:05:57,520 Speaker 1: that's where the bitcoin is different from all the cryptos. 123 00:05:57,560 --> 00:06:00,760 Speaker 1: It is macro and macro only that's what matters the most, 124 00:06:01,080 --> 00:06:02,640 Speaker 1: and to me, that's what's gonna matter. So as far 125 00:06:02,680 --> 00:06:04,400 Speaker 1: as technical levels, a lot of times this is like 126 00:06:04,440 --> 00:06:06,080 Speaker 1: this to me is kind of like noise in the 127 00:06:06,080 --> 00:06:08,200 Speaker 1: big picture. If you look back at this from the 128 00:06:08,200 --> 00:06:10,599 Speaker 1: future hypothetically five years so now we're going to look 129 00:06:10,600 --> 00:06:13,320 Speaker 1: back at this, it's like, Okay, finally we had some 130 00:06:13,520 --> 00:06:16,440 Speaker 1: time for this, that massive rallying and stock market just 131 00:06:16,560 --> 00:06:19,200 Speaker 1: to mean revert and normalize a little bit, and it 132 00:06:19,320 --> 00:06:22,159 Speaker 1: made everything kicking, like the FED and mask and fiscal 133 00:06:22,240 --> 00:06:25,360 Speaker 1: monical stem monitory stemas has to pick up. And then 134 00:06:25,360 --> 00:06:28,880 Speaker 1: we see these predominant deflationary forces, like look at crude oil. 135 00:06:29,080 --> 00:06:31,240 Speaker 1: It just probably peaked around seventy and guess what, in 136 00:06:31,240 --> 00:06:32,839 Speaker 1: ten years, we're not gonna be using much of it. 137 00:06:33,080 --> 00:06:35,480 Speaker 1: We're all we're driving electric cars. But that's the key 138 00:06:35,520 --> 00:06:37,679 Speaker 1: thing where bitcoin s up comes in. It's set rapidly 139 00:06:37,720 --> 00:06:42,239 Speaker 1: advancing technology and innovation, reshaping the world with Catty Cathy 140 00:06:42,240 --> 00:06:44,800 Speaker 1: Woods touts on this is part of the whole world 141 00:06:44,880 --> 00:06:48,039 Speaker 1: getting banked. And by the way, there's no the monetary 142 00:06:48,040 --> 00:06:50,120 Speaker 1: powers policy is fixed. You don't have to worry about 143 00:06:50,120 --> 00:06:52,440 Speaker 1: more bitcoins coming on. To me, that's what's gonna come on. 144 00:06:52,760 --> 00:06:54,919 Speaker 1: As far as levels, they're kind of noise, but you know, 145 00:06:54,920 --> 00:06:57,120 Speaker 1: getting back above fifty I think will be the next 146 00:06:57,240 --> 00:07:00,080 Speaker 1: key threshold. Sustaining above below thirty and b m of 147 00:07:00,120 --> 00:07:02,120 Speaker 1: a problem for a well, but for me, the last 148 00:07:02,120 --> 00:07:03,680 Speaker 1: thing I want to do is focus on the day trade. 149 00:07:03,680 --> 00:07:05,440 Speaker 1: It's the macro and the bigger picture. I think we're 150 00:07:05,440 --> 00:07:08,799 Speaker 1: more likely to head towards a hundred um than sustained 151 00:07:08,800 --> 00:07:11,000 Speaker 1: below thirty this year. Agree with you a hundred percent, 152 00:07:11,080 --> 00:07:13,520 Speaker 1: But you know, it's the day traders and Wall Street 153 00:07:13,520 --> 00:07:18,240 Speaker 1: bets that get the headlines. Um, it's the momentary moves 154 00:07:18,280 --> 00:07:20,960 Speaker 1: that spur people to to call the game. By the way, 155 00:07:21,000 --> 00:07:23,240 Speaker 1: Elon Musk, I don't know if you saw this, Mike 156 00:07:23,280 --> 00:07:26,600 Speaker 1: that he just tweeted it, but uh, he just tweeted 157 00:07:26,640 --> 00:07:30,760 Speaker 1: that he has that Tesla has diamond hands, which is, 158 00:07:30,840 --> 00:07:33,280 Speaker 1: for those who don't know kind of Wall Street bets 159 00:07:33,280 --> 00:07:37,880 Speaker 1: Redditt jargon for someone who absolutely refuses to roll over 160 00:07:37,920 --> 00:07:40,600 Speaker 1: and sell. He will not capitulate. It's kind of what 161 00:07:40,680 --> 00:07:43,840 Speaker 1: he's saying now. But you can never trust Elon, or 162 00:07:43,840 --> 00:07:46,360 Speaker 1: at least I think crypto investors won't won't be able 163 00:07:46,400 --> 00:07:50,000 Speaker 1: to trust him Um to stick to his word, because 164 00:07:50,000 --> 00:07:52,880 Speaker 1: he seems to go back and forth. He seems to 165 00:07:52,960 --> 00:07:57,320 Speaker 1: waffle on his commitment to crypto and to bitcoin. And 166 00:07:57,920 --> 00:08:02,440 Speaker 1: it's also I think interesting that he embraces DOES because 167 00:08:02,880 --> 00:08:07,280 Speaker 1: serious crypto investors are sickened by DOES, or at least 168 00:08:07,760 --> 00:08:10,480 Speaker 1: embarrassed by it. Wouldn't you say, oh absolutely, I look 169 00:08:10,480 --> 00:08:12,800 Speaker 1: at the whole Doge saga and him getting instead of 170 00:08:12,880 --> 00:08:14,480 Speaker 1: right live is We're gonna look back at that and 171 00:08:14,960 --> 00:08:16,360 Speaker 1: from the future and say, okay, well that was the 172 00:08:16,400 --> 00:08:19,600 Speaker 1: peak in speculative accesses and all those ten thousand cryptos 173 00:08:19,600 --> 00:08:21,880 Speaker 1: that don't really matter anymore. Now there's only like ten 174 00:08:21,920 --> 00:08:24,520 Speaker 1: that really matter, Bitcoin and Theoryum and then a few others. 175 00:08:25,040 --> 00:08:27,880 Speaker 1: And you know, I look yet, right now, let's just 176 00:08:27,960 --> 00:08:30,400 Speaker 1: let's fixtion and put an iteration on this. Let's say, 177 00:08:30,520 --> 00:08:32,680 Speaker 1: by you know, end of the year, we sustain above 178 00:08:32,800 --> 00:08:36,000 Speaker 1: fifty thousand. What does that mean? Bitcoin just survived another 179 00:08:36,040 --> 00:08:38,560 Speaker 1: of the thousand cuts. It's it's with it's hit, it's 180 00:08:38,679 --> 00:08:41,640 Speaker 1: it's been hit, hit, hit it for ten years. Markets 181 00:08:41,640 --> 00:08:44,319 Speaker 1: are used to this, and if you're allocating to the space, 182 00:08:44,400 --> 00:08:46,600 Speaker 1: you should be, you know, a small percentage your portfolio 183 00:08:46,679 --> 00:08:49,520 Speaker 1: expected to drop fifty and if you don't, then you're 184 00:08:49,520 --> 00:08:52,640 Speaker 1: too overweight. But give it five ten years and it's 185 00:08:52,720 --> 00:08:55,320 Speaker 1: it's a major ten x. And if it doesn't continue 186 00:08:55,360 --> 00:08:58,920 Speaker 1: being the digital version of gold, well the world's going digital. 187 00:08:59,000 --> 00:09:01,280 Speaker 1: Something else will and it's just a matter of time. 188 00:09:01,440 --> 00:09:03,520 Speaker 1: Bitcoin has already won that race. So I look at 189 00:09:03,559 --> 00:09:06,600 Speaker 1: it as bitcoin and gold together. It can analyze gold 190 00:09:06,600 --> 00:09:08,480 Speaker 1: without it, and this type of dip. I expect them 191 00:09:08,480 --> 00:09:11,560 Speaker 1: both to appreciate out of this. Most notably if we see, 192 00:09:11,840 --> 00:09:14,160 Speaker 1: let's say the stock market actually goes back to unchanged 193 00:09:14,160 --> 00:09:16,560 Speaker 1: on the year, just imagine the iterations from the FET 194 00:09:17,440 --> 00:09:20,160 Speaker 1: What do you, Mike, doesn't give you any concern here 195 00:09:20,280 --> 00:09:22,840 Speaker 1: that the Elon Musk of the world can have such 196 00:09:22,880 --> 00:09:26,360 Speaker 1: an outsize impact on this security it Maybe we're peak 197 00:09:26,440 --> 00:09:30,559 Speaker 1: Musk hitting Peak Musk was Senterate live. But the key 198 00:09:30,600 --> 00:09:32,280 Speaker 1: thing is also I like to say the fact that 199 00:09:32,320 --> 00:09:35,199 Speaker 1: the world's largest automaker by market cap is allocated to 200 00:09:35,280 --> 00:09:39,160 Speaker 1: this digital reserve asset makes significant sense, but it's also 201 00:09:39,240 --> 00:09:41,320 Speaker 1: might be marking a peak for death sla. I mean, 202 00:09:41,360 --> 00:09:43,679 Speaker 1: who else can in the world cannot make electric cars? 203 00:09:43,720 --> 00:09:45,840 Speaker 1: I mean everybody can know. I drive a Chevy Volte. 204 00:09:45,880 --> 00:09:48,400 Speaker 1: I love it because I don't have range anxiety. And 205 00:09:48,400 --> 00:09:50,440 Speaker 1: of course it's it's it's a poor man's teslas, so 206 00:09:50,760 --> 00:09:53,400 Speaker 1: maybe it's peaked. Dude, I love it. I love it too, 207 00:09:53,480 --> 00:09:56,680 Speaker 1: I gotta tell you, Um, I have always loved that car. 208 00:09:57,000 --> 00:10:03,360 Speaker 1: And beyond the specific Chevy Vault, hybrids are the answer. 209 00:10:03,440 --> 00:10:07,120 Speaker 1: I don't know why anyone has to be dedicated to 210 00:10:07,160 --> 00:10:10,319 Speaker 1: a battery battery electric vehicles, and now we're going off 211 00:10:10,320 --> 00:10:14,240 Speaker 1: on a tangent here. But for me, um, why not 212 00:10:14,559 --> 00:10:17,960 Speaker 1: have a range extend or as BMW calls, you know 213 00:10:18,040 --> 00:10:20,920 Speaker 1: their three cylinder engines that they throw in the I 214 00:10:21,120 --> 00:10:23,319 Speaker 1: eight and the I three. Why not have that extra 215 00:10:23,400 --> 00:10:26,440 Speaker 1: security and you can use the battery most of the time, 216 00:10:26,640 --> 00:10:28,800 Speaker 1: be good for the environment most of the time. When 217 00:10:28,800 --> 00:10:31,559 Speaker 1: you need it, throw in a little bit of internal combustion. 218 00:10:31,800 --> 00:10:34,640 Speaker 1: But Matt, I think that's very relevant to the current topic. 219 00:10:34,720 --> 00:10:39,480 Speaker 1: It's called innovation and rampidly advancing technology disrupting what's happening. 220 00:10:39,520 --> 00:10:41,680 Speaker 1: So right now the infrastructure is just not there for 221 00:10:41,760 --> 00:10:44,680 Speaker 1: all electric cars. The infrastructure is still not there for 222 00:10:44,760 --> 00:10:46,760 Speaker 1: digital asses. We don't have an e t F in 223 00:10:46,760 --> 00:10:48,439 Speaker 1: the U S. And guess what, it's a matter of time. 224 00:10:48,440 --> 00:10:50,200 Speaker 1: The rest of the world has proven there's no problem 225 00:10:50,200 --> 00:10:51,880 Speaker 1: with e t f s. By the way I used 226 00:10:51,920 --> 00:10:53,720 Speaker 1: to run, you know, I remember in the natural gas 227 00:10:53,720 --> 00:10:55,960 Speaker 1: ETF it went to zero and some things like that. 228 00:10:56,080 --> 00:10:58,760 Speaker 1: So to me, what you're we're in the midst of 229 00:10:58,840 --> 00:11:01,960 Speaker 1: rapidly I think when the most significant periods of history 230 00:11:02,000 --> 00:11:06,240 Speaker 1: of technologies taken over pressuring inflationary forces, and we're seeing 231 00:11:06,280 --> 00:11:08,880 Speaker 1: a little bit of that normalization today. Bitcoin is part 232 00:11:08,920 --> 00:11:11,439 Speaker 1: of it. It's just this is part of that adjustment. 233 00:11:11,440 --> 00:11:12,880 Speaker 1: I think we're gonna look back at this in the 234 00:11:12,960 --> 00:11:14,400 Speaker 1: future when there's e t F so and when the 235 00:11:14,400 --> 00:11:16,760 Speaker 1: Baltil the in bitcoin drops to about the same as goal, 236 00:11:16,800 --> 00:11:18,760 Speaker 1: which it probably will because it gets what. Only thing 237 00:11:18,800 --> 00:11:22,760 Speaker 1: that's uncertain is demand, and um all car cars will 238 00:11:22,800 --> 00:11:24,640 Speaker 1: be electric. But I'll end on this one key point 239 00:11:24,720 --> 00:11:27,520 Speaker 1: just because of efficiency that you mentioned in cars, total 240 00:11:27,800 --> 00:11:30,400 Speaker 1: consumption of U S liquid fuels is exactly the same 241 00:11:30,440 --> 00:11:33,360 Speaker 1: as it was twenty years ago. Yet GDP and production 242 00:11:33,440 --> 00:11:37,840 Speaker 1: is increased over that's just efficiency. Now everything is going electronic, 243 00:11:37,920 --> 00:11:42,120 Speaker 1: and it's an electrification, digitalization, decarbonization. It's all kicking in. 244 00:11:43,000 --> 00:11:45,040 Speaker 1: Everything gets more efficient. You know, you might not eleven 245 00:11:45,080 --> 00:11:47,920 Speaker 1: gets forty miles a gallon now it's pretty insane. UM, 246 00:11:48,080 --> 00:11:51,120 Speaker 1: the way you drive it, well, no, not the way 247 00:11:51,160 --> 00:11:53,600 Speaker 1: I drive when my wife drives in. Mike, thanks so 248 00:11:53,679 --> 00:11:55,480 Speaker 1: much for joining us. I really appreciate it. I know 249 00:11:55,520 --> 00:11:58,360 Speaker 1: you're super busy today. You can see Mike's work UM 250 00:11:58,360 --> 00:12:00,400 Speaker 1: today on the t live blog. We've out of a 251 00:12:00,520 --> 00:12:03,600 Speaker 1: top live blog which is excellent and excellent way to 252 00:12:03,720 --> 00:12:06,680 Speaker 1: follow events like this. UM. Just type t L I 253 00:12:06,760 --> 00:12:11,160 Speaker 1: V go on your Bloomberg terminal to continue keeping up 254 00:12:11,160 --> 00:12:12,760 Speaker 1: with what's going on. Big point. Also, I hope I 255 00:12:12,800 --> 00:12:14,960 Speaker 1: can get Mike and my television program later. I'm on 256 00:12:15,320 --> 00:12:18,920 Speaker 1: Bloomberg TV at one pm for people. I'm gonna have 257 00:12:18,960 --> 00:12:20,679 Speaker 1: my people talk to his people and see if we 258 00:12:20,720 --> 00:12:27,440 Speaker 1: can get him. We have FED minutes will be released 259 00:12:27,440 --> 00:12:30,080 Speaker 1: today two pm Wall Street time, and I think most 260 00:12:30,120 --> 00:12:32,280 Speaker 1: observers are going to be, you know, taking a look 261 00:12:32,320 --> 00:12:35,439 Speaker 1: at how the FED of views inflation. It has been 262 00:12:35,920 --> 00:12:38,920 Speaker 1: fairly consistent across the board saying, Hey, this inflation that 263 00:12:38,920 --> 00:12:42,559 Speaker 1: you're seeing in the economy is transitory, uh, and it 264 00:12:42,679 --> 00:12:46,000 Speaker 1: should not be a concern for this economic rebound. But 265 00:12:46,040 --> 00:12:49,000 Speaker 1: that's clearly one of the key issues that the market 266 00:12:49,040 --> 00:12:51,040 Speaker 1: is focusing on. Now, let's bring in our good friend, 267 00:12:51,120 --> 00:12:55,559 Speaker 1: Danielle DiMartino Booth. She's a CEO and director of Intelligence 268 00:12:55,559 --> 00:12:58,520 Speaker 1: for Quill Intelligence. She's also a former advisor at the 269 00:12:58,600 --> 00:13:02,520 Speaker 1: Dallas Federal Reserve and a Bloom Opinion contributor. Also is 270 00:13:02,559 --> 00:13:05,559 Speaker 1: the author of the book entitled fed Up, An Insider's 271 00:13:05,600 --> 00:13:08,840 Speaker 1: take on why the Federal Reserve is Bad for America. Danielle, 272 00:13:08,840 --> 00:13:11,319 Speaker 1: thanks so much for taking the time here. What are 273 00:13:11,360 --> 00:13:13,880 Speaker 1: you going to be looking for here as in these 274 00:13:13,880 --> 00:13:17,960 Speaker 1: FED minutes later this afternoon. Well, first of all, thanks 275 00:13:17,960 --> 00:13:20,160 Speaker 1: for having me this morning. And you know, I will 276 00:13:20,200 --> 00:13:25,760 Speaker 1: be tuned in to what Clarda mentioned a few days ago, 277 00:13:26,040 --> 00:13:28,120 Speaker 1: and and that is that he's going to be attuned 278 00:13:28,160 --> 00:13:33,040 Speaker 1: and attentive to incoming data. You know, being a former 279 00:13:33,080 --> 00:13:37,680 Speaker 1: FED insider, it's not on on hood of for the 280 00:13:37,720 --> 00:13:41,680 Speaker 1: minutes to not two changes in between the end of 281 00:13:41,720 --> 00:13:44,800 Speaker 1: the meeting and the time that's passed since then, and 282 00:13:44,880 --> 00:13:47,760 Speaker 1: you know what, what we can say is that there's 283 00:13:47,800 --> 00:13:51,920 Speaker 1: been a lot of mixed messaging. We started to see 284 00:13:51,960 --> 00:13:54,680 Speaker 1: the commodities complex come off of its highs. This is 285 00:13:54,679 --> 00:13:58,120 Speaker 1: going to be very reassuring for anybody inside the FED 286 00:13:58,160 --> 00:14:03,040 Speaker 1: who's sticking to their transitor um narrative. But by the 287 00:14:03,080 --> 00:14:08,480 Speaker 1: same token, there is an undeniability about the stickiness in 288 00:14:08,520 --> 00:14:13,240 Speaker 1: some of the prices that we're seeing. So you don't 289 00:14:13,280 --> 00:14:16,640 Speaker 1: buy the transitory narrative. Although I will say, if I 290 00:14:16,679 --> 00:14:20,240 Speaker 1: look at the commodities complex right now, uh, there are 291 00:14:20,280 --> 00:14:24,040 Speaker 1: some serious red arrows everywhere you look, just today, right 292 00:14:24,120 --> 00:14:26,000 Speaker 1: and one day. Of course, a trend does not make 293 00:14:26,120 --> 00:14:29,400 Speaker 1: But you don't think that this inflation we're gonna see 294 00:14:29,480 --> 00:14:34,120 Speaker 1: is only a momentary. Well, I think that there are 295 00:14:34,160 --> 00:14:38,280 Speaker 1: certain areas that are showing again stickiness we're seeing We're 296 00:14:38,280 --> 00:14:42,880 Speaker 1: seeing that in steel and iron ore in specific pockets. Um. 297 00:14:42,920 --> 00:14:46,840 Speaker 1: But I'm actually in the camp that does not believe 298 00:14:47,080 --> 00:14:51,640 Speaker 1: in the inflation expectations narrative because it's got such a 299 00:14:51,680 --> 00:14:56,880 Speaker 1: tight correlation purely with the commodities index. So I prefer 300 00:14:57,120 --> 00:15:01,360 Speaker 1: the Cleveland said inflation gauge, which which takes into context 301 00:15:01,800 --> 00:15:04,320 Speaker 1: labor costs, and if you look at the Atlanta FEDS 302 00:15:04,320 --> 00:15:06,760 Speaker 1: that have kind of a real time labor gauge, it 303 00:15:06,880 --> 00:15:10,960 Speaker 1: really isn't flashing red just yet. And you know where 304 00:15:11,000 --> 00:15:13,520 Speaker 1: I live in Texas. Next week is the last week 305 00:15:13,520 --> 00:15:16,720 Speaker 1: of school. We've got a ton of high school students 306 00:15:16,760 --> 00:15:19,680 Speaker 1: who are going to be hitting the labor market, and 307 00:15:20,560 --> 00:15:22,920 Speaker 1: wages are a lot higher than they've been in past summers. 308 00:15:22,920 --> 00:15:25,200 Speaker 1: They might think of doing things other than being a 309 00:15:25,240 --> 00:15:28,120 Speaker 1: lifeguard because there there might be enough of a poll 310 00:15:28,160 --> 00:15:32,160 Speaker 1: for low skilled positions, especially the five thousands that are 311 00:15:32,160 --> 00:15:35,840 Speaker 1: open among manufacturers. They're mostly low skilled positions, but these 312 00:15:35,920 --> 00:15:37,880 Speaker 1: kids can make a lot over the next three months 313 00:15:37,880 --> 00:15:41,200 Speaker 1: between Memorial Day and Labor Day. That's a great point, Danielle, 314 00:15:41,200 --> 00:15:44,000 Speaker 1: because I guess we've had the news you know, earlier 315 00:15:44,000 --> 00:15:46,960 Speaker 1: in the week about McDonald's raising it's you know, minimum wage, 316 00:15:47,000 --> 00:15:50,600 Speaker 1: the thirteen dollars in Amazon to fifteen dollars and even 317 00:15:50,640 --> 00:15:54,960 Speaker 1: Bank of America talking twenty five dollars here. Is that 318 00:15:55,040 --> 00:15:58,320 Speaker 1: just kind of anecdotal news in your mind, or is 319 00:15:58,360 --> 00:16:04,520 Speaker 1: that indicative of made some wage inflation creeping into this economy. Well, again, 320 00:16:04,560 --> 00:16:07,400 Speaker 1: we're not seeing it picked up in the aggregate measures 321 00:16:07,440 --> 00:16:10,000 Speaker 1: just yet, can we have to remember that there are 322 00:16:10,040 --> 00:16:13,680 Speaker 1: still so many small businesses in this country that can't 323 00:16:13,680 --> 00:16:17,640 Speaker 1: afford to compete with the larger big box retailers the 324 00:16:17,920 --> 00:16:21,280 Speaker 1: banks of America. As you say, so, we're definitely seeing 325 00:16:21,680 --> 00:16:24,440 Speaker 1: a grab for labor. What we don't know is what 326 00:16:24,520 --> 00:16:28,280 Speaker 1: the other side of September six looks like when these 327 00:16:28,520 --> 00:16:32,680 Speaker 1: UM supplemental unemployment benefits expiring. We've already heard from Joe Mansion, 328 00:16:32,880 --> 00:16:36,280 Speaker 1: who is arguably the most powerful person inside the Beltway, 329 00:16:36,360 --> 00:16:39,240 Speaker 1: that he's not going to sign on for an extension 330 00:16:39,280 --> 00:16:42,000 Speaker 1: of the extra three dollars per week. So again, we've 331 00:16:42,040 --> 00:16:46,479 Speaker 1: got two two flows into the labor market between teenagers 332 00:16:46,480 --> 00:16:48,200 Speaker 1: and one stag of back to school. You're gonna have 333 00:16:48,440 --> 00:16:50,800 Speaker 1: millions of Americans who are who are going to be 334 00:16:50,800 --> 00:16:53,480 Speaker 1: faced with the choice of, well, gee, I might have 335 00:16:53,600 --> 00:16:56,000 Speaker 1: to go back to work because I can't make as much. 336 00:16:56,240 --> 00:16:59,880 Speaker 1: I can't sustain myself anymore. On these unemployment benefits will 337 00:16:59,880 --> 00:17:02,880 Speaker 1: be reopening nationwide. Yeah, I got it. Just a minute 338 00:17:02,960 --> 00:17:05,480 Speaker 1: left here, Danielle. But a question from a financial professional, 339 00:17:05,960 --> 00:17:08,600 Speaker 1: a listener who who also has seen you speak in 340 00:17:08,640 --> 00:17:12,520 Speaker 1: the past and appreciates your UM your views. He he 341 00:17:12,560 --> 00:17:15,520 Speaker 1: wants to know if you think any other central bank 342 00:17:15,560 --> 00:17:17,840 Speaker 1: will blink before the FED, or does the FED have 343 00:17:18,040 --> 00:17:21,080 Speaker 1: to move before the rest of the global central banks 344 00:17:21,119 --> 00:17:24,120 Speaker 1: do it? Oh, gracious, We've already heard from the Bank 345 00:17:24,119 --> 00:17:26,600 Speaker 1: of Canada as well as some of the emerging markets 346 00:17:26,600 --> 00:17:28,919 Speaker 1: for dilful one. We know that other banks are going 347 00:17:28,960 --> 00:17:31,200 Speaker 1: to start the tapering process, and they've indicated that they're 348 00:17:31,200 --> 00:17:33,119 Speaker 1: going to do that, while the SET is maintaining that 349 00:17:33,160 --> 00:17:36,960 Speaker 1: they're not thinking about thinking about the taper discussion Rob Kaplan, 350 00:17:37,200 --> 00:17:41,000 Speaker 1: you know, notwithstanding so uh no, I I think it's 351 00:17:41,040 --> 00:17:43,840 Speaker 1: feasible that the FED not be first out of the gate. 352 00:17:44,320 --> 00:17:47,840 Speaker 1: That would be abnormal. And so you think and even 353 00:17:47,880 --> 00:17:50,320 Speaker 1: the important, the big ones like the e c B 354 00:17:50,440 --> 00:17:53,680 Speaker 1: in the Bank of England could move first. That's a 355 00:17:53,720 --> 00:17:57,639 Speaker 1: different story. You know, they're the level of quantitative easing 356 00:17:57,720 --> 00:17:59,720 Speaker 1: that they're pumping out. John Authors had a great call 357 00:17:59,800 --> 00:18:02,520 Speaker 1: up few days ago. It's it's higher than it was 358 00:18:02,560 --> 00:18:04,439 Speaker 1: when the pandemic first hit. When you're talking about the 359 00:18:04,440 --> 00:18:07,280 Speaker 1: ECB and even even the FED and the Bank of Engment, 360 00:18:07,640 --> 00:18:09,439 Speaker 1: I don't know. I I still send a lot of 361 00:18:09,440 --> 00:18:12,879 Speaker 1: reticence on the part of the Big four Central Banks. 362 00:18:13,320 --> 00:18:15,240 Speaker 1: All right, Daniel, thanks so much for joining us. Daniel 363 00:18:15,320 --> 00:18:19,760 Speaker 1: DeMartino booth there. She is the CEO of Quill Intelligence. 364 00:18:19,800 --> 00:18:22,720 Speaker 1: Of course, she's a former advisor at the Dallas Federal 365 00:18:22,760 --> 00:18:27,119 Speaker 1: Reserve as well, also a Bloomberg Opinion contributor, as is 366 00:18:27,320 --> 00:18:30,280 Speaker 1: John Authors. You can find columns from both of them. 367 00:18:30,320 --> 00:18:34,879 Speaker 1: Just type O, P, I, N GO. I want to 368 00:18:34,920 --> 00:18:36,760 Speaker 1: talk about what's going on in retail. You have a 369 00:18:36,800 --> 00:18:40,840 Speaker 1: slew of earnings yesterday and then a slew today as well. 370 00:18:41,359 --> 00:18:44,520 Speaker 1: Let's bring in Ty Lopez to see winners and losers. 371 00:18:44,560 --> 00:18:49,760 Speaker 1: Are executive chairman of Retail e Commerce Ventures. Um, Ty, 372 00:18:49,880 --> 00:18:53,119 Speaker 1: what do you think now that we've seen UH Target, 373 00:18:53,440 --> 00:18:59,640 Speaker 1: t J Max, Lowe's, Home Depot, Macy's, UH Walmart? Where 374 00:18:59,680 --> 00:19:02,919 Speaker 1: do you think? Which business do you think is best 375 00:19:03,080 --> 00:19:10,000 Speaker 1: poised to succeed in a reopening? Yeah? Thanks for having me. 376 00:19:10,040 --> 00:19:12,879 Speaker 1: I would say the better question is what's not going 377 00:19:12,920 --> 00:19:16,000 Speaker 1: to do well? Not much. I just read an interesting 378 00:19:16,000 --> 00:19:20,640 Speaker 1: report by Adobe on a calm and U. For example, 379 00:19:20,760 --> 00:19:25,200 Speaker 1: ten of Americans had who are now shopping a calm 380 00:19:25,320 --> 00:19:28,480 Speaker 1: had never bought anything at the beginning of the pandemic. 381 00:19:28,640 --> 00:19:32,439 Speaker 1: That's thirty million new people entered just because of the pandemic. 382 00:19:32,880 --> 00:19:36,560 Speaker 1: So that momentum, I mean, this thing's wild clothings up 383 00:19:36,600 --> 00:19:39,000 Speaker 1: for us. We're in all kind of we on radiosheck, electronics, 384 00:19:39,000 --> 00:19:43,399 Speaker 1: all this stuff. We haven't seen anything, uh do anything 385 00:19:43,440 --> 00:19:46,880 Speaker 1: but surge. So I think there's probably some B two 386 00:19:46,880 --> 00:19:50,480 Speaker 1: C stuff, maybe something that supports commercial real estate. That's 387 00:19:50,520 --> 00:19:52,760 Speaker 1: about the only thing I know that's getting hit right now. 388 00:19:52,800 --> 00:19:55,160 Speaker 1: So it's a great time to be in retail, especially 389 00:19:55,160 --> 00:19:56,840 Speaker 1: if you have that a calm, you know, if you 390 00:19:56,880 --> 00:19:59,000 Speaker 1: have the flair for e calm, by the by the way, 391 00:19:59,040 --> 00:20:04,320 Speaker 1: your business, so you invest in companies that have well 392 00:20:04,359 --> 00:20:08,600 Speaker 1: known brands but didn't do great as brick and mortar stores. 393 00:20:08,640 --> 00:20:15,640 Speaker 1: You mentioned radio shack, but also Model's, um uh one, 394 00:20:15,840 --> 00:20:20,200 Speaker 1: linens and things. Yeah, so so how is that going? Then? 395 00:20:22,280 --> 00:20:26,760 Speaker 1: It's been you know, we started buying before the pandemic 396 00:20:27,119 --> 00:20:30,680 Speaker 1: and it was going well then and this thing has 397 00:20:30,720 --> 00:20:35,440 Speaker 1: just super truck what would have taken until happened last 398 00:20:36,080 --> 00:20:38,720 Speaker 1: in the last twelve months without a doubt. So there's 399 00:20:38,760 --> 00:20:41,880 Speaker 1: been just we fought forwarded ten years. As I said, 400 00:20:41,920 --> 00:20:45,159 Speaker 1: thirty million people according to one survey in the United States. 401 00:20:45,160 --> 00:20:47,439 Speaker 1: That's just the US and of course e calm is 402 00:20:47,640 --> 00:20:51,119 Speaker 1: very easy to go global with, so you have of 403 00:20:51,119 --> 00:20:54,240 Speaker 1: people in the UK had never shopped a calm before COVID. 404 00:20:54,800 --> 00:20:58,320 Speaker 1: So everything is just pointing to of course we knew 405 00:20:58,400 --> 00:21:01,120 Speaker 1: this was going to happen. If you we would all 406 00:21:01,119 --> 00:21:05,320 Speaker 1: predict our great grandchildren would be completely digital and how 407 00:21:05,359 --> 00:21:08,560 Speaker 1: they do things. Well, guess what it happened right now. 408 00:21:08,760 --> 00:21:11,160 Speaker 1: So you op to wait for your grandchildren to live 409 00:21:11,200 --> 00:21:14,320 Speaker 1: that life. You're living it right now, alright, Ty, So 410 00:21:15,000 --> 00:21:17,000 Speaker 1: as we think about retail one of the key issues 411 00:21:17,040 --> 00:21:19,400 Speaker 1: here and it's probably been accelerated because of the pandemic, 412 00:21:19,440 --> 00:21:23,000 Speaker 1: and is uh acceleration and e commerces? Are there still 413 00:21:23,000 --> 00:21:26,919 Speaker 1: too many stores out there? Um, you know a lot 414 00:21:26,960 --> 00:21:31,000 Speaker 1: of it's right sized itself. I think you see everybody 415 00:21:31,000 --> 00:21:36,280 Speaker 1: from Victoria's Secret down has kind of right size their stores. Um, 416 00:21:36,359 --> 00:21:40,119 Speaker 1: will probably start for one, will probably start opening stores 417 00:21:40,160 --> 00:21:42,960 Speaker 1: back up. All right, all right, Ty, thanks so much. 418 00:21:42,960 --> 00:21:44,280 Speaker 1: We're gon have to leave it there because we have 419 00:21:44,440 --> 00:21:47,159 Speaker 1: some breaking news here. Ty Lopez, Executive Chairman, Retail e 420 00:21:47,359 --> 00:21:54,360 Speaker 1: Commerce Adventures. We appreciate that. A risk off day today, 421 00:21:54,520 --> 00:21:59,399 Speaker 1: We're sure, particularly you look at some of the cryptocurrencies again, uh, 422 00:21:59,760 --> 00:22:02,439 Speaker 1: you know, it's Bitcoin is off about twelve percent now, 423 00:22:02,880 --> 00:22:06,399 Speaker 1: having Uh, it's declined from earlier in the day, so 424 00:22:06,440 --> 00:22:08,560 Speaker 1: perhaps a little bit of a correction there. Let's get 425 00:22:08,560 --> 00:22:10,120 Speaker 1: a sense of, you know, kind of how we should 426 00:22:10,160 --> 00:22:12,760 Speaker 1: step back here on days like today and maybe take 427 00:22:12,800 --> 00:22:14,800 Speaker 1: a look at the bigger picture. We can do that 428 00:22:14,880 --> 00:22:18,200 Speaker 1: today with David Could. He's a founder, CEO, and chief 429 00:22:18,240 --> 00:22:21,560 Speaker 1: investment strategist for Mainstay Capital. David, thanks so much for 430 00:22:21,640 --> 00:22:24,280 Speaker 1: joining us. A great day to chat with you, given 431 00:22:24,320 --> 00:22:26,360 Speaker 1: what's going on in the markets here. So let's take 432 00:22:26,359 --> 00:22:28,480 Speaker 1: a step back. What do you make of the markets 433 00:22:28,520 --> 00:22:32,000 Speaker 1: here today, the equity markets, the crypto markets. Uh. Is 434 00:22:32,040 --> 00:22:34,679 Speaker 1: this just kind of a healthy pullback or is it 435 00:22:34,760 --> 00:22:40,320 Speaker 1: something more? Well, we've had a good run here from 436 00:22:40,680 --> 00:22:43,600 Speaker 1: you know, really over the past twelve months in the markets, 437 00:22:43,600 --> 00:22:46,720 Speaker 1: and and we we were rolling here into May with 438 00:22:46,840 --> 00:22:50,920 Speaker 1: the markets at all time highs, margin debt at all 439 00:22:50,960 --> 00:22:53,640 Speaker 1: time highs, and we're seeing a day here. I think 440 00:22:53,680 --> 00:22:58,320 Speaker 1: it's uh triggered by this massive sell off in crypto, 441 00:22:58,440 --> 00:23:01,959 Speaker 1: but we're seeing some certainly risk off across the board, 442 00:23:02,320 --> 00:23:05,159 Speaker 1: and I think some of that's to be expected, but 443 00:23:05,440 --> 00:23:08,160 Speaker 1: you know, it is giving investors a chance to take 444 00:23:08,160 --> 00:23:11,600 Speaker 1: a look at their portfolios and understand how they're allocated 445 00:23:11,640 --> 00:23:14,080 Speaker 1: and where they might want to be allocated. And we 446 00:23:14,119 --> 00:23:17,200 Speaker 1: think this is an opportunity to take a hard look 447 00:23:17,200 --> 00:23:20,800 Speaker 1: at that. Certainly, uh in the crypto space for seeing 448 00:23:20,920 --> 00:23:25,200 Speaker 1: uh some massive sell off and bitcoin, etherium and so forth. Well, 449 00:23:25,240 --> 00:23:28,800 Speaker 1: we're seeing sell sell offs across the board, really, David. 450 00:23:28,800 --> 00:23:31,920 Speaker 1: I mean if I look at UM, well we've got 451 00:23:31,920 --> 00:23:36,960 Speaker 1: a GMM Global Macro Movers function on the Bloomberg and 452 00:23:37,240 --> 00:23:40,480 Speaker 1: there's just read across the screen. Equity index is selling 453 00:23:40,520 --> 00:23:43,879 Speaker 1: down four x, UM is selling off, and it looks 454 00:23:43,960 --> 00:23:47,560 Speaker 1: like UM pretty much everything against the dollars down. Commodities, 455 00:23:47,840 --> 00:23:51,679 Speaker 1: we have copper down, w t I, soybeans, um, iron, 456 00:23:51,680 --> 00:23:56,240 Speaker 1: ore all selling off. You know, where where do you 457 00:23:56,520 --> 00:23:58,879 Speaker 1: take advantage of this? If if you want to, if 458 00:23:58,880 --> 00:24:02,000 Speaker 1: you've got dry powder cash to put to work, where 459 00:24:02,000 --> 00:24:07,080 Speaker 1: would you put it? So? You know, today, notwithstanding, we 460 00:24:07,160 --> 00:24:11,000 Speaker 1: think that it makes sense for investors to continue to 461 00:24:11,119 --> 00:24:15,040 Speaker 1: look at the value trade, value oriented stocks and those 462 00:24:15,119 --> 00:24:19,280 Speaker 1: reflation or inflation trades. Uh. You know, technology was clearly 463 00:24:19,280 --> 00:24:22,040 Speaker 1: a place to be last year, but our our mantra 464 00:24:22,080 --> 00:24:25,480 Speaker 1: has been to continue to rotate into value and we 465 00:24:25,640 --> 00:24:27,840 Speaker 1: still think it makes sense to do that, even the 466 00:24:28,000 --> 00:24:30,840 Speaker 1: in in commodities for that matter, some of the e 467 00:24:30,920 --> 00:24:33,679 Speaker 1: t F E t f s like c M, the 468 00:24:33,840 --> 00:24:39,920 Speaker 1: direction commodity strategy XLB, the spider material select sector, even 469 00:24:39,960 --> 00:24:45,000 Speaker 1: though we've seen lumber, which had gone to astronomic levels, 470 00:24:45,200 --> 00:24:48,159 Speaker 1: has had a significant correction here uh, and some of 471 00:24:48,200 --> 00:24:53,280 Speaker 1: the commodities have corrected. Going forward with the inflationary pressures, 472 00:24:53,280 --> 00:24:56,000 Speaker 1: with the demand that will still be there. UH, we 473 00:24:56,040 --> 00:25:00,160 Speaker 1: think it makes sense. And those areas helped to diversify 474 00:25:00,240 --> 00:25:04,960 Speaker 1: our stock portfolio in past days and weeks. We've seen 475 00:25:05,560 --> 00:25:08,920 Speaker 1: good diversification benefits with our stocks. We think that makes 476 00:25:08,920 --> 00:25:11,879 Speaker 1: sense to continue in the value trade because we've literally 477 00:25:11,920 --> 00:25:15,639 Speaker 1: seen a route in tech stocks, so we think that 478 00:25:15,720 --> 00:25:21,800 Speaker 1: continues to make makes sense for investors. All right, David, 479 00:25:21,840 --> 00:25:24,680 Speaker 1: just real quickly, UM, what's your sector that you guys 480 00:25:24,720 --> 00:25:27,359 Speaker 1: are most excited about? Right here, right now, thirty seconds? 481 00:25:29,359 --> 00:25:33,240 Speaker 1: Right now, We think that it makes sense to value 482 00:25:33,240 --> 00:25:38,680 Speaker 1: oriented stocks UH, Infrastructure plays et f s like PAVES, 483 00:25:38,760 --> 00:25:42,800 Speaker 1: the global x US US infrastructure e t F UH, 484 00:25:42,840 --> 00:25:48,919 Speaker 1: and then the small cap, MidCap, large cap value intiiculcally 485 00:25:49,040 --> 00:25:52,560 Speaker 1: oriented stocks. You can get that through E T F 486 00:25:52,640 --> 00:25:56,639 Speaker 1: s uh like the Piece or US small cap cash 487 00:25:56,680 --> 00:26:01,320 Speaker 1: cows the A L F H. Those plays make a 488 00:26:01,359 --> 00:26:03,800 Speaker 1: lot of sense right here, David, thanks so much for 489 00:26:03,920 --> 00:26:07,119 Speaker 1: joining us, David could la. They really appreciate your time 490 00:26:07,160 --> 00:26:09,800 Speaker 1: and your insight, especially on a day like this. This 491 00:26:10,720 --> 00:26:14,400 Speaker 1: is Bloomberg. Thanks for listening to the Bloomberg Markets podcast. 492 00:26:14,760 --> 00:26:18,000 Speaker 1: You can subscribe and listen to interviews with Apple Podcasts 493 00:26:18,119 --> 00:26:22,040 Speaker 1: or whatever podcast platform you prefer. I'm Matt Miller. I'm 494 00:26:22,040 --> 00:26:26,120 Speaker 1: on Twitter at Matt Miller three. Pet On Ball Sweeney 495 00:26:26,119 --> 00:26:28,760 Speaker 1: I'm on Twitter at pt Sweeney. Before the podcast, you 496 00:26:28,760 --> 00:26:31,160 Speaker 1: can always catch us worldwide at Bloomberg Radio.