Latest / Bloomberg Intelligence / Holiday Shopping And 2021 Market Outlook

Transcript

Holiday Shopping And 2021 Market Outlook · Bloomberg Intelligence

• 0:00
  Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside
• 0:04
  Speaker 1: my co host Matt Miller. Every business day we bring
• 0:06
  Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
• 0:11
  Speaker 1: with essential market moving news. Find the Bloomberg Markets podcast
• 0:15
  Speaker 1: called Apple Podcasts or wherever you listen to podcasts, and
• 0:18
  Speaker 1: at Bloomberg dot com Slash podcast. A couple of days ago,
• 0:22
  Speaker 1: was driving by the Short Hills Mall in New Jersey
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  Speaker 1: and it was packed, leading me to think that consumers
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  Speaker 1: are out there spending. Let's get some more color on
• 0:31
  Speaker 1: all of that, because I haven't done any holiday shopping.
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  Speaker 1: But Mary Shore, senior equity analysts for Columbia Thread Needle
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  Speaker 1: Investments Joints, is, Marie, how's this holiday shopping season shaping
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  Speaker 1: up for the retailers? Thanks so much for having me.
• 0:45
  Speaker 1: The holiday shopping season has turned out very positive so far.
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  Speaker 1: We heard that from companies as they reported through November
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  Speaker 1: and over all of you on the consumer remains very positive.
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  Speaker 1: Um the headline trends over Black Friday were a little
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  Speaker 1: more mixed, but I think what we're seeing is that
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  Speaker 1: the shape of the season this year is smoother than
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  Speaker 1: what we've seen in the past as consumers have prioritized
• 1:13
  Speaker 1: their shopping earlier. But this is not necessarily a bad
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  Speaker 1: thing because that does help maximize full price selling and
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  Speaker 1: reduces operational stress for the retailers. So are they getting
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  Speaker 1: all the stuff that consumers need, our consumers finding the
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  Speaker 1: stuff they're searching for, or is there really this um
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  Speaker 1: you know, lack of goods and a rise in prices.
• 1:41
  Speaker 1: That's a great question because we've heard so much about
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  Speaker 1: the supply chain disruption and congestion that continues. But all
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  Speaker 1: things considered, I think the companies have done a very
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  Speaker 1: good job, except for a couple of companies with large
• 1:56
  Speaker 1: exposure to Vietnam, companies have been able to build inventory
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  Speaker 1: into the holiday and they're confident in their ability to
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  Speaker 1: meet demand. Of course, this is all coming at a cost,
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  Speaker 1: and the companies have now built extended lead times and
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  Speaker 1: higher freight costs into their plans through the first half
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  Speaker 1: of the year. But I would say outside for a
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  Speaker 1: couple of key items like maybe some gaming consoles, consumers
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  Speaker 1: should still be able to find what they're looking for
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  Speaker 1: as we move into the final stretch. So Mari, am
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  Speaker 1: I going to get any deals when I start shopping here,
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  Speaker 1: How let's the promotional environment out there? That's another great question.
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  Speaker 1: Throughout the pandemic, we have seen the retailers reduce their
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  Speaker 1: overall promotional activity as they have planned inventory in a
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  Speaker 1: very detail, in a very discipline way. And now I
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  Speaker 1: think they all realize that they tend do more with
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  Speaker 1: less and actually drive higher margin dollars with less inventory.
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  Speaker 1: And so the net results of that will the lower
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  Speaker 1: promotional activity I believe for the foreseeable future, and that
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  Speaker 1: really should be across category, and it's a reflection of
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  Speaker 1: not just the near term supply chain congestion, but also
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  Speaker 1: the fact that retailers are just doing a much better
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  Speaker 1: job of managing inventory. Alright, so what kind of inflation
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  Speaker 1: are we seeing? I know, Friday, we're going to get
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  Speaker 1: the CPI UM numbers out, so we'll find out soon
• 3:29
  Speaker 1: enough that basket of goods. But in terms of you know, um,
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  Speaker 1: what what consumers are really feeling? How high is it? Well,
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  Speaker 1: it is hard to measure, and of course it does
• 3:40
  Speaker 1: vary by category. There are certain categories like food where
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  Speaker 1: we're seeing inflation currently running in the load to mid
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  Speaker 1: single digit range, but in other more discretionary categories where
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  Speaker 1: there is limited supply, their strong demands driven by strong
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  Speaker 1: product innovation and low or promotional activity. As we discussed,
• 4:02
  Speaker 1: you could see inflation um or you know, net pricing
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  Speaker 1: rising above those mid single digit levels, but it is
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  Speaker 1: hard to measure because some of these categories the consumer
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  Speaker 1: is not buying as frequently, so it's in some cases
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  Speaker 1: more difficult to notice the pricing increases. But overall, the
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  Speaker 1: companies have seen a really positive response to the pricing
• 4:26
  Speaker 1: that they have taken, and there really has not been
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  Speaker 1: very much pushed back from the com humor. So mar again,
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  Speaker 1: when I drove by my local shopping mall a couple
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  Speaker 1: of days ago, it was full with shoppers. But I
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  Speaker 1: still have that question, is the United States still overstored?
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  Speaker 1: Is there still too much you know, kind of too
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  Speaker 1: many stores out there, and we've got to reduce the
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  Speaker 1: footprint even more. It's a great question. I think that
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  Speaker 1: really coming out of the recession, the companies has tried
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  Speaker 1: to take a closer look at their store basis and
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  Speaker 1: close on profitable stores. Um. During the pandemic, we heard
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  Speaker 1: about like the department stores for instance, coming out and
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  Speaker 1: closing hundreds of stores. So what I would say in
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  Speaker 1: terms of the store rationalization that still needs to happen,
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  Speaker 1: I think a lot of the heavy lifting has already
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  Speaker 1: been done. But going forward, we will continue to see
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  Speaker 1: select and strategic store closures as companies focus on their
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  Speaker 1: most profitable doors. All right, So that's what we that's
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  Speaker 1: what we see UM, certainly in the car industry where
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  Speaker 1: they focus selling the highest margin products UM and leave
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  Speaker 1: the other ones aside. And that's what we're seeing, I
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  Speaker 1: guess across other industries as well, right Mari, Yes, absolutely,
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  Speaker 1: As as I said, the companies are very focused on
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  Speaker 1: maximizing margin rate and margin dollars, and so they are
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  Speaker 1: doing a better job of streamline not just their store bases,
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  Speaker 1: but also they are assortment their product assortments UM to
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  Speaker 1: focus on the most productive and the highest margin skews. Mary,
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  Speaker 1: thank you so much for joining us. We really appreciate
• 6:13
  Speaker 1: getting your perspective here on retail sales as we head
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  Speaker 1: into the whining days of the holiday selling season. Mary Shore,
• 6:21
  Speaker 1: senior equity analysts for Colombia Thread Needle Investments. You know,
• 6:30
  Speaker 1: when the Omnicom news broke, the markets obviously sold off
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  Speaker 1: pretty significantly. They bounced back with a vengeance, vengeance, very
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  Speaker 1: very quickly. And it's kind of getting to the point
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  Speaker 1: now where the investors are almost immune to some of
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  Speaker 1: this uh pandemic news flow that we've been dealing with
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  Speaker 1: for our past twenty months. And see what we're hearing
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  Speaker 1: down in the trenches. Shawn Snyder, head of investment Strategy
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  Speaker 1: for US Wealth Management Group at City UH Sean, thanks
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  Speaker 1: so much for joining us here. As you talk to
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  Speaker 1: your clients, what are they saying about how they're digesting
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  Speaker 1: all this pandemic news because it doesn't seem like it
• 7:08
  Speaker 1: has the same effect that it used to. Thanks for
• 7:12
  Speaker 1: having me. I really appreciate it. I do think that
• 7:15
  Speaker 1: investors have developed some sort of herd immunity against COVID
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  Speaker 1: news um. You know, I know we retired the word
• 7:22
  Speaker 1: transitory when it comes to inflation, but you know, it
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  Speaker 1: seems like they're kind of looking at omnicrom is maybe
• 7:27
  Speaker 1: something that's transitory. And you know, there has been some
• 7:30
  Speaker 1: positive news, you know, about the variant. It's hard to
• 7:33
  Speaker 1: say the variant is positive, but you know there's some
• 7:37
  Speaker 1: news and antibodio therapies appear to be effective against omnicrom um.
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  Speaker 1: You know, hospitalizations appear to be held in check so far,
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  Speaker 1: you know, got a lot of the suspeculative, it's not
• 7:47
  Speaker 1: you know, actual confirmed data, you know, and the symptoms
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  Speaker 1: seemed to be more mild. And I think, you know,
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  Speaker 1: we heard about the third dose regime potentially neutralizing the
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  Speaker 1: variant this morning. But I think perhaps even more importantly
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  Speaker 1: is that it looks like the current vaccines may protect
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  Speaker 1: against severe disease. And I think that's a really important
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  Speaker 1: point that we need to consider. Yeah. Absolutely, I mean,
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  Speaker 1: as long as all all it does is infect a
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  Speaker 1: bunch of people and um doesn't put very many in
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  Speaker 1: the hospital, then it's not as scary, right, all right.
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  Speaker 1: And Plus, if you think the United States has a
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  Speaker 1: you know, sixty percent of its vaccination or six pc
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  Speaker 1: of it's population, uh fully vaccinated, you know that, then
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  Speaker 1: you know, we're the real problem that happens with these
• 8:33
  Speaker 1: waves is the surgeon hospitalizations and seeing healthcare systems overwhelmed.
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  Speaker 1: And that's really why you need to enter lockdowns and
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  Speaker 1: that type of scenario. But if we're not seeing the
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  Speaker 1: surgeon hospitalizations, UM, and we're not seeing seeing severe disease
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  Speaker 1: because people have at least some protection, UM, then they're
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  Speaker 1: you're less likely to go back into that renewed lockdown scenario.
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  Speaker 1: It's less likely to have a large impact on the economy,
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  Speaker 1: and I think that's why markets are know, have sense
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  Speaker 1: to recover it in just eight days. I do have
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  Speaker 1: to say that I was planning on working from London
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  Speaker 1: next week and I and now I am no longer
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  Speaker 1: going to. Even though I was going to work in
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  Speaker 1: London next week, but now I'm not going to. Why not?
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  Speaker 1: Because the omicron variant is spreading like wildfire. And even
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  Speaker 1: though I'm vaccinated, um, and even though I'm not afraid
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  Speaker 1: I would get seriously ill, I don't feel like getting it.
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  Speaker 1: You know, I would have to sit on a plane
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  Speaker 1: with a bunch of people. I'd have to wear a
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  Speaker 1: mask the whole time. You know how much I hate that. Um,
• 9:35
  Speaker 1: I probably have to wear a mask in the London
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  Speaker 1: office everywhere I go. I don't want to deal with that.
• 9:40
  Speaker 1: I'd much rather just stay home. So at least, you know, anecdotally,
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  Speaker 1: some people are changing their plans like me. Interesting, all right,
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  Speaker 1: So Sean, given that kind of backdrop, what are you
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  Speaker 1: telling your clients these days? Well, we're actually focusing on
• 9:54
  Speaker 1: a couple of things. We're telling our clients to essentially
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  Speaker 1: upgrade the quality of their portfolios. And you know, we've
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  Speaker 1: sort of bucketed that into two different core themes. One
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  Speaker 1: is long term Leaders and then the other one is
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  Speaker 1: uh sort of be where the cash thief. And so
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  Speaker 1: long term Leaders is focused on companies that are our
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  Speaker 1: leaders in their industry, ones that tend to have um
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  Speaker 1: long term growth prospect growth prospects and you know, stable revenues.
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  Speaker 1: And it happens to be the technology, health care, and
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  Speaker 1: consumer staples are the three sectors that often pop up
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  Speaker 1: the most in that quality bias type bucket. So we
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  Speaker 1: like that those areas and when it comes to beat
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  Speaker 1: the cash thief, what that really means is that, you know,
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  Speaker 1: their clients often think that if inflation is going to
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  Speaker 1: be high, you know, then maybe that's bad for the
• 10:42
  Speaker 1: equity market and that I should move into cash. But
• 10:44
  Speaker 1: that's the wrong thing to do because what happens is
• 10:46
  Speaker 1: when you move into cash, you're effectively losing uh six
• 10:51
  Speaker 1: of your net worth, right if it's all in cash.
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  Speaker 1: So what you should do is you should actually be
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  Speaker 1: into equities because they tend to beat inflation over a
• 11:00
  Speaker 1: long creative time and earnings. Corporate profits are the key
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  Speaker 1: driver financial markets, and that outpaces inflation more often than not.
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  Speaker 1: Just look at this year. We have a six point
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  Speaker 1: two percent inflation rate currently come Friday, maybe closer to seven.
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  Speaker 1: But equity to return. So you know, in some ways,
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  Speaker 1: if you want to maintain your net worth, you you
• 11:20
  Speaker 1: actually should move into equities. All right, John, We're gonna
• 11:23
  Speaker 1: have to leave it there. Um. I really appreciate your
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  Speaker 1: thoughts there. Sean Snyder, he's head of UH Investment Strategy
• 11:29
  Speaker 1: at City's US Wealth Management CD. You point out his
• 11:32
  Speaker 1: previous experience as well. Previous experience former he was a
• 11:36
  Speaker 1: budget analyst at the White House. Wow, very cool, that
• 11:39
  Speaker 1: exactly all right. Let's check in with Mike Vogelsan, chief
• 11:45
  Speaker 1: investment Officer and managing director for Cap Trust. I'm gonna
• 11:49
  Speaker 1: get his thoughts in these markets, but I want to start,
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  Speaker 1: Mike with your thoughts on you know, the pivot we
• 11:54
  Speaker 1: saw from the Federal Reserve last week, accelerating tapering, talking putting.
• 12:00
  Speaker 1: You know, interest rate increases right front and center here.
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  Speaker 1: How do you view that given your outlook for two
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  Speaker 1: how did that shape or reshape your outlook? Yeah? You know,
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  Speaker 1: it's um good question. First of all, I think it
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  Speaker 1: is a really important pivot point in the market and
• 12:17
  Speaker 1: the psychology of the market. Uh. You know, understand that
• 12:20
  Speaker 1: the the our opinion is that the while the economy
• 12:24
  Speaker 1: is doing terrifically well, most of the upside has in
• 12:27
  Speaker 1: the in the stock market, and certainly the high valuations
• 12:29
  Speaker 1: were in have come from from excessive and very abundant
• 12:34
  Speaker 1: liquidity is a better word, um, from the Fed of course,
• 12:38
  Speaker 1: and and and stimulus and so on, but specifically the Fed.
• 12:41
  Speaker 1: And you know, I think I think once we saw H. J.
• 12:45
  Speaker 1: Pow as we like to call him, um get you know,
• 12:48
  Speaker 1: clear up his nomination and renomination for the position. Uh,
• 12:52
  Speaker 1: you know, the fact they became a little more um,
• 12:55
  Speaker 1: a little more hawkish on on interest rates, I think
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  Speaker 1: is uh it tells you what he's really feeling. We
• 13:01
  Speaker 1: think it's a it's a it is a pivot, and
• 13:03
  Speaker 1: it is a bit of a signal change here to say,
• 13:07
  Speaker 1: you know, the going is going to be tougher. Um.
• 13:10
  Speaker 1: He clearly thinks that, you know, things are too easy
• 13:14
  Speaker 1: and too loose, and so we fully expect to be
• 13:18
  Speaker 1: a little more difficult market. Not saying there's anything major.
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  Speaker 1: We're not calling a massive correction, but I just think
• 13:25
  Speaker 1: the easy money has gone, and I think it would
• 13:28
  Speaker 1: make some sense to pay attention to what the Federal
• 13:30
  Speaker 1: Reserve chair says when he when he starts to think
• 13:32
  Speaker 1: about about tapering and raising interest rates faster. You know,
• 13:38
  Speaker 1: I think back to our interview UM yesterday on Floomberg
• 13:43
  Speaker 1: Radio with one of the big investment legends, Peter Lynch,
• 13:50
  Speaker 1: who said, those of you who are going all passive
• 13:54
  Speaker 1: are going to really miss out here. And I know
• 13:56
  Speaker 1: this is something that's cyclical, right, active versus passive, But
• 13:58
  Speaker 1: are you saying is a year to be active as well?
• 14:02
  Speaker 1: I think things exactly right. We we we like that
• 14:05
  Speaker 1: trade a lot. It's been a it's been a megacap
• 14:08
  Speaker 1: saying lead stock market, and most managers have been systematically underweight, uh,
• 14:13
  Speaker 1: you know, the entire array of super super large cap
• 14:17
  Speaker 1: MEGACP stocks and and so you know, we think, you know,
• 14:20
  Speaker 1: the valuation disparity there is also exceptionally high. So we
• 14:24
  Speaker 1: think that that um, a lot of the action is
• 14:26
  Speaker 1: going to come from the active side of the equation.
• 14:29
  Speaker 1: We we we uh, just just because the market is
• 14:33
  Speaker 1: likely to be broader and there will be opportunity in places,
• 14:36
  Speaker 1: whether it's cyclicals or whether reopening trade or whatever. Uh,
• 14:40
  Speaker 1: that that will allow us to take some take some
• 14:42
  Speaker 1: market share back in the active space as opposed to
• 14:45
  Speaker 1: the passive led by the megacap stocks. Right, the passive,
• 14:48
  Speaker 1: the passive valuate, the passive geminy, if you will, is
• 14:52
  Speaker 1: really dominated and driven by by the megacap stocks doing
• 14:56
  Speaker 1: so well. Because it's just hard as an active manager
• 14:58
  Speaker 1: and I've been an active manager for tw through two years,
• 15:01
  Speaker 1: it's really hard to get enough of that stuff in
• 15:03
  Speaker 1: your portfolio, uh, to to overweight the benchmark that you're
• 15:08
  Speaker 1: that you're trying to beat, right, and so it's a
• 15:10
  Speaker 1: it's been a hard situation. I think it's going to reverse. Uh.
• 15:14
  Speaker 1: Going into going to I will say one thing. You know,
• 15:19
  Speaker 1: the market normally anticipates economic activity by you know, six, twelve,
• 15:24
  Speaker 1: eighteen months or whatever happens to be. Um. I think
• 15:28
  Speaker 1: one of the really interesting patterns in today's market is
• 15:31
  Speaker 1: that is that it has been trading coincidentally with COVID,
• 15:36
  Speaker 1: with COVID rumors, right, UM, I mean it's so so
• 15:40
  Speaker 1: making making projections for it's really hardly a well that's
• 15:46
  Speaker 1: why that's why we have smart guys like like you
• 15:48
  Speaker 1: on to try to give us a little bit of guidance. Here,
• 15:50
  Speaker 1: we're gonna be actually leave it there, Mike. Mike Vocals,
• 15:53
  Speaker 1: chief investment Officer and managing director at Cap Trust based
• 15:56
  Speaker 1: in Boston, Massachusetts. Kind, we've had some tremendous, you know,
• 16:05
  Speaker 1: kind of one to three, two and a half percent
• 16:07
  Speaker 1: moves in these markets. As a markets try to discount
• 16:09
  Speaker 1: this new variant out there and what it means for
• 16:11
  Speaker 1: the economic recovery. Let's check in with a professional if
• 16:15
  Speaker 1: in debt, Chief investment officer of Manetta Group Efan, Thanks
• 16:19
  Speaker 1: so much for joining us here. Boy, let's just take
• 16:21
  Speaker 1: the last seven days when we really started to get
• 16:25
  Speaker 1: some news on this omicron variant. How do you think
• 16:30
  Speaker 1: the market kind of reacted to it? Did it? Did
• 16:34
  Speaker 1: it feel any different than what we've been dealing with
• 16:36
  Speaker 1: or the past twenty months? It did? This downturn we
• 16:41
  Speaker 1: saw on markets definitely sounds a little more chilling um
• 16:44
  Speaker 1: it sells. We saw a lot more severe drop off
• 16:46
  Speaker 1: and some of the stocks that perhaps had been leveraged
• 16:49
  Speaker 1: to the economy reopening. And I like the way it
• 16:52
  Speaker 1: was described in something I read recently as a debate.
• 16:54
  Speaker 1: It's almost as if the market is having a debate.
• 16:57
  Speaker 1: It's debasing what the impact of omecon is gonna be. Um,
• 17:00
  Speaker 1: it's debating whether inflation is transitory or not. And in
• 17:03
  Speaker 1: a way, the way we see the volatility markets, we
• 17:05
  Speaker 1: see each side of that debate making their case. It's
• 17:09
  Speaker 1: interesting that we well, we're looking for six point seven
• 17:13
  Speaker 1: percent inflation on Friday, the highest since when Olivia Newton
• 17:18
  Speaker 1: John was topping the charts. Um, is this you know?
• 17:22
  Speaker 1: Is this going to come back down next year? We're
• 17:25
  Speaker 1: all riled up right now about Powell's pivot hawk is
• 17:29
  Speaker 1: pivot um, but are we going to see inflation coming
• 17:31
  Speaker 1: back down to the threes two? It's really interesting on
• 17:36
  Speaker 1: six point seven is certainly going to just from an
• 17:38
  Speaker 1: optical soundpoint for the shop markets, because we already had
• 17:41
  Speaker 1: the highest level of thirty one years of the last
• 17:43
  Speaker 1: at the last time where we lived at the numbers
• 17:45
  Speaker 1: of six point two. So what I think would be
• 17:47
  Speaker 1: really interesting is to look beyond that this this week's results,
• 17:50
  Speaker 1: because well, we have seen a drop in oil prices
• 17:53
  Speaker 1: and that's why I think the week, the week we've
• 17:55
  Speaker 1: seen has been more notable in terms of market fragility,
• 17:59
  Speaker 1: and I think making the hate that markets have been
• 18:00
  Speaker 1: stubbornly resilience up to now. They seems to have been
• 18:03
  Speaker 1: resilient around any news, the potential government shutdown, geo political news,
• 18:08
  Speaker 1: even the news of the delta variance. They were relatively
• 18:11
  Speaker 1: resilient around that. The travel curbs that came in and
• 18:14
  Speaker 1: the fact that we're right in the middle of winter
• 18:16
  Speaker 1: that certainly did and more of a chilling message to
• 18:19
  Speaker 1: true markets. UM on the frigility. So, just as I
• 18:22
  Speaker 1: mentioned the debate, I asked myself the question whether markets
• 18:24
  Speaker 1: can be resilient and fragile at the same time. But
• 18:27
  Speaker 1: to where we see inflation going into next year. Certainly
• 18:30
  Speaker 1: there was some of the the acute supply tinch cane
• 18:33
  Speaker 1: shortages and bottlenecks should be easing. Um, we will probably
• 18:38
  Speaker 1: see after the summer and easing of demands which would
• 18:40
  Speaker 1: should also bring prices after the holiday season, and using
• 18:43
  Speaker 1: of demands which should bring prices in. And again the
• 18:46
  Speaker 1: oil price and energy prices filtering through will have a
• 18:49
  Speaker 1: more muted effect going forward. But it was interesting that
• 18:52
  Speaker 1: the timing of German powers, the discussion of the removing
• 18:56
  Speaker 1: the bird transitory and who suggestions that they would be
• 18:58
  Speaker 1: speeding up the papering that actually was what was probably
• 19:03
  Speaker 1: the worst timing given where markets were feeling anyway, given
• 19:06
  Speaker 1: the Omicon news. So because of that, we think that's
• 19:08
  Speaker 1: already been based in now because that essentially have we
• 19:12
  Speaker 1: now have a sense that the said maybe moving faster
• 19:14
  Speaker 1: than we thought they are getting concerned. There's point of
• 19:17
  Speaker 1: that before, kind of trying to control inflation from the top,
• 19:20
  Speaker 1: and that has actually now been built in. I don't
• 19:22
  Speaker 1: expect further pronouncence of that nature to shop markets, um
• 19:27
  Speaker 1: and we most likely will be looking at a lower
• 19:29
  Speaker 1: rate than six point seven percent going forward, but certainly
• 19:32
  Speaker 1: higher than we've been used to enjoying around that two
• 19:34
  Speaker 1: percent historically. All Right, so given that backdrop ethan, what
• 19:38
  Speaker 1: is your outlook? We believe that this will continue to
• 19:45
  Speaker 1: be a good market. With stock pickers, we're focused not
• 19:47
  Speaker 1: only on the fundamental nature of eclonic markets from where
• 19:50
  Speaker 1: they are at today, but also some of the technical factors.
• 19:53
  Speaker 1: We cannot ignore the vast amounts of money that have
• 19:56
  Speaker 1: been pumped into the system globally, but particularly in the US,
• 19:59
  Speaker 1: where that money has not been safe but has instead
• 20:02
  Speaker 1: been touched into risk gasses. So there is a record
• 20:04
  Speaker 1: amounts of money and money market funds who saw them
• 20:07
  Speaker 1: in the reverse repo markets, record amount of transactions that
• 20:11
  Speaker 1: that suggests that there is money on the sidelines and
• 20:13
  Speaker 1: as a results, when we did have gips like we
• 20:15
  Speaker 1: did this week, even chilling ones that were a little
• 20:18
  Speaker 1: more severe than we were used to, they close up
• 20:21
  Speaker 1: melatively quickly. There is a desire not to miss ouse,
• 20:24
  Speaker 1: to to buy on the dip. There is a lot
• 20:25
  Speaker 1: of retail activity and all of that is focused now
• 20:29
  Speaker 1: around and propping up equity markets. I see that that
• 20:31
  Speaker 1: technical factor is not going to go away because that
• 20:34
  Speaker 1: should supports equity markets going into two to what I
• 20:37
  Speaker 1: see in terms of sectors and very focused um because
• 20:41
  Speaker 1: of my European routes on on what we saw coming
• 20:43
  Speaker 1: out of a Glassgow in top twenty six, so where
• 20:46
  Speaker 1: we saw, now what's the road from Glasgow. We're definitely
• 20:48
  Speaker 1: going to see more capital flowing through to renewable energy,
• 20:53
  Speaker 1: to climate change focus strategies, to e f G focused funds,
• 20:57
  Speaker 1: and those sectors such as electric vehicles. We seeing the
• 21:01
  Speaker 1: huge momentum that it's surrounded. It stops to Tesla as
• 21:04
  Speaker 1: well as the car rental companies when they simply say
• 21:06
  Speaker 1: they're going to add evs to their fleet. So that's
• 21:09
  Speaker 1: kind of almost Meanlike momentum indicates that there is clearly
• 21:14
  Speaker 1: a sense that this is going to be a sector
• 21:15
  Speaker 1: that will have a lot more focus in the future.
• 21:17
  Speaker 1: So I'm looking at all those factors that are likely
• 21:19
  Speaker 1: to benefit from what came out of cost PTY six.
• 21:23
  Speaker 1: All right, Evan, thanks so much for joining us. Ethan Devitt.
• 21:25
  Speaker 1: There is actually the last five years in a row
• 21:29
  Speaker 1: ranked in the top ten by barons among independent pretty
• 21:32
  Speaker 1: registered investment advisors. Thanks for listening to the Bloomberg Markets podcast.
• 21:37
  Speaker 1: You can subscribe and listen to interviews of Apple podcasts
• 21:41
  Speaker 1: or whatever podcast platform you prefer. I'm Matt Miller. I'm
• 21:45
  Speaker 1: on Twitter at Matt Miller three. On false Sweeney, I'm
• 21:49
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• 21:52
  Speaker 1: always catch us worldwide at Bloomberg Radio.