Latest / Bloomberg Intelligence / Bloomberg Money: Inflation Angst Returns & Micron Millionaires

Transcript

Bloomberg Money: Inflation Angst Returns & Micron Millionaires · Bloomberg Intelligence

• 0:02
  Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News, Bloomberg Money.
• 0:12
  Speaker 2: This is the Bloomberg Money Podcast. I'm Tom Keene with
• 0:15
  Speaker 2: Scarlet Foo. Join us each week for a smart look
• 0:19
  Speaker 2: at the forces shaping your financial life. On Personal Finance,
• 0:23
  Speaker 2: on Retirement, and Wealth Management. We will explore how people
• 0:27
  Speaker 2: are earning, investing, and building wealth. We are live Fridays
• 0:32
  Speaker 2: at noon Eastern on Bloomberg Television. Subscribe to the podcast
• 0:36
  Speaker 2: wherever you listen, and as always on the Bloomberg Terminal
• 0:40
  Speaker 2: and the Bloomberg Business app.
• 0:55
  Speaker 3: Good Moon.
• 0:56
  Speaker 2: Everyone is Bloomberg Money, on Personal Finance, on Retirement, on
• 1:00
  Speaker 2: health Manager as well. Scott Fu and Tom King, thank
• 1:03
  Speaker 2: you for being with us today. A great set of
• 1:04
  Speaker 2: people coming up. At first, we got to talk a
• 1:07
  Speaker 2: FED meeting next week, and it's got to have something
• 1:10
  Speaker 2: to do with my personal finance.
• 1:11
  Speaker 3: I don't know what yet.
• 1:12
  Speaker 4: They're going to talk about inflation, it's definitely going to come.
• 1:14
  Speaker 3: Are they going to raise rates?
• 1:16
  Speaker 5: Uh?
• 1:16
  Speaker 1: Some people think so.
• 1:17
  Speaker 2: What the rate market district? Tho'k at first Personal Finance
• 1:20
  Speaker 2: the rate market this week?
• 1:21
  Speaker 3: What does it? Exactly? Due to the housing market.
• 1:23
  Speaker 4: It makes it more expensive if you're looking to get
• 1:25
  Speaker 4: a mortgage. Mortgage rates have creep back up again.
• 1:27
  Speaker 2: And of course the whole thing here is everything's getting
• 1:30
  Speaker 2: more expensive. We talked about this for week after week,
• 1:32
  Speaker 2: but the.
• 1:33
  Speaker 4: Fact gas prices are more expensive now because of oil.
• 1:36
  Speaker 3: It was an eventful week.
• 1:37
  Speaker 4: It's certainly stopped by the fact that Lebron James is
• 1:40
  Speaker 4: going to the filly.
• 1:41
  Speaker 3: All the clock up. That took folks nineteen seconds.
• 1:46
  Speaker 2: You're about the script right now, return to Akron Ohio's
• 1:50
  Speaker 2: Nikki Waller here.
• 1:51
  Speaker 3: You almost canceled being on this show, right Yeah, I
• 1:54
  Speaker 3: had to drive to Philly. Are you going to Philly?
• 1:56
  Speaker 3: Did you just assume he go back to Cleveland?
• 1:59
  Speaker 1: I was home.
• 2:00
  Speaker 6: I mean, what a great pre retirement move.
• 2:03
  Speaker 2: The control room's going what in God's name of the
• 2:05
  Speaker 2: two on Bloomberg Money. Here's what we're doing. Edward Jardenny
• 2:09
  Speaker 2: is in the building. It's incredibly important to speak to
• 2:11
  Speaker 2: ed Yard Denny. He is optimistic about the Roaring twenties.
• 2:15
  Speaker 2: He is optimistic that the bond vigilantes won't get.
• 2:18
  Speaker 4: Us Scarlett and later this hour was week with Tricia Scarlatta.
• 2:21
  Speaker 4: She's head of Education Savings at JP Morgan Asset Management.
• 2:25
  Speaker 4: Just a few more weeks ago before it's back to school,
• 2:27
  Speaker 4: so saving for college and all things five twenty nine
• 2:29
  Speaker 4: are top of thee.
• 2:30
  Speaker 2: And I love her because she's got huge enthusiasm. Most
• 2:33
  Speaker 2: people in education are boring, boring, boring, boring, and Tricia
• 2:38
  Speaker 2: just kills it. I mean as a real enthusiasm there
• 2:40
  Speaker 2: about taking hundreds of thousands of dollars from.
• 2:43
  Speaker 4: Us, well, you know, I mean, she's got to be
• 2:45
  Speaker 4: the cheerleader for everyone's saving.
• 2:46
  Speaker 2: Let's look at our first discussion here with good Bloomberg people.
• 2:50
  Speaker 2: Nikki Waller is with us from personal financier, and you
• 2:52
  Speaker 2: get to them two important stories there at a moment.
• 2:55
  Speaker 2: Stacy Vanix Smith with us today as well. Everybody's business
• 2:59
  Speaker 2: are wonderful podcasts. And David Gerr has chosen to be
• 3:02
  Speaker 2: with us. And this is after driving by Reds and me.
• 3:05
  Speaker 2: You came all the way back.
• 3:08
  Speaker 3: I had to be here. The Lineyer's like the odyssey
• 3:11
  Speaker 3: a mile long.
• 3:11
  Speaker 7: I was driving an odyssey as it was anyway, Yes.
• 3:14
  Speaker 1: It's likes good.
• 3:16
  Speaker 2: This came up this week out of the blue, and
• 3:18
  Speaker 2: we're totally we don't just scripts here.
• 3:20
  Speaker 3: David doesn't want to go throw I don't gridlock gridlock.
• 3:24
  Speaker 2: Do we are we rooting for gridlock in twenty twenty seven.
• 3:29
  Speaker 3: Oh, that's a great question. And Washington are just broadly speaking.
• 3:32
  Speaker 3: Broadly speaking, but in Washington, the Washington and David.
• 3:36
  Speaker 7: I think we're facing a lot of gridlock here as
• 3:37
  Speaker 7: we get closer and closer to the election. Look, there's
• 3:39
  Speaker 7: talk here of a government shutdown in October of this year.
• 3:42
  Speaker 7: We just had this vote on a war powers resolution
• 3:44
  Speaker 7: in the House. We saw four Republicans come over to
• 3:46
  Speaker 7: join their Democrats on the other side of the isle.
• 3:49
  Speaker 7: I think that people are aware of the fact that
• 3:51
  Speaker 7: given the pressures that we're seeing overseas now manifest and
• 3:54
  Speaker 7: domestic pressures as well, it's it's unlikely that we're going
• 3:57
  Speaker 7: to see a lot of movement and watch.
• 3:58
  Speaker 1: So I was speak of domestic pressures.
• 3:59
  Speaker 4: Teriffs are back, David and just white President Trump's claim
• 4:02
  Speaker 4: that other countries pay for it. The duties are all
• 4:05
  Speaker 4: basically born by American companies and at the end of
• 4:07
  Speaker 4: the day, American consumers absolutely right.
• 4:10
  Speaker 7: So we see the present using Section three or one
• 4:11
  Speaker 7: of that Trade Act of nineteen seventy four to impose
• 4:14
  Speaker 7: ten to twelve and a half percent tariffs on sixty
• 4:17
  Speaker 7: countries and more perhaps are on the way here. Look,
• 4:19
  Speaker 7: it's an interesting moment at which this is happening. You're
• 4:21
  Speaker 7: going to talk about inflation. I'm sure over the course
• 4:23
  Speaker 7: of the show we know that these are going to
• 4:24
  Speaker 7: be inflationary.
• 4:26
  Speaker 1: It is a choice, to say.
• 4:27
  Speaker 7: The least that the administration is doing this is they
• 4:29
  Speaker 7: look at this war in the Middle East widening and
• 4:30
  Speaker 7: lasting longer than they thought it would be. I think
• 4:33
  Speaker 7: it's still incumbent upon them to try to make the
• 4:35
  Speaker 7: sale to explain to the American people why this is
• 4:37
  Speaker 7: the route that they're going down, these latest tariffs on
• 4:40
  Speaker 7: human rights grounds at least a name, and we'll see
• 4:43
  Speaker 7: sort of the American people.
• 4:44
  Speaker 3: I think people are numbed. Were numbed into the summer.
• 4:47
  Speaker 4: They're customed to a lot of things flying around. Absolutely,
• 4:50
  Speaker 4: but it is a picture of economic anxiety, and you
• 4:53
  Speaker 4: see it in the price action and Nikki. It's fascinating
• 4:55
  Speaker 4: to see how people respond, especially young people, which is
• 4:58
  Speaker 4: a real picture of it. Dreams right, you've got financial
• 5:01
  Speaker 4: nihilism on the one end, and then you've got what
• 5:03
  Speaker 4: some people are calling retirement maxing on the other end.
• 5:07
  Speaker 6: Yes, we took a look this week at this cohort
• 5:10
  Speaker 6: of gen z who are not the ones on prediction markets,
• 5:13
  Speaker 6: who are not the ones taking these yolo bets in
• 5:16
  Speaker 6: the stock market.
• 5:17
  Speaker 1: But instead they are, and we use this with.
• 5:19
  Speaker 6: Our tongue in cheek, a little bit retirement maxing. And
• 5:22
  Speaker 6: they're putting away money into savings rather than spending in
• 5:26
  Speaker 6: the moment, sometimes even ignoring them us most of them,
• 5:31
  Speaker 6: not yet because around people under thirty, yeah, sure that'll
• 5:36
  Speaker 6: take care of your excess emerging. But yeah, people putting
• 5:40
  Speaker 6: into iras and their four one case as much as
• 5:43
  Speaker 6: they can because they don't know what's coming ahead.
• 5:46
  Speaker 4: Right, And this idea that they're not even spending on
• 5:47
  Speaker 4: themselves because they're just saving in every way, Stacy, you
• 5:52
  Speaker 4: have written or you've written about, and you've talked about
• 5:54
  Speaker 4: on your podcast, this idea that Americans are spending less
• 5:57
  Speaker 4: time on enjoying themselves, on spending for themselves recreational products.
• 6:01
  Speaker 4: There's something called funflation taking place.
• 6:04
  Speaker 8: Yes, there's a little bit of funflation taking place because
• 6:07
  Speaker 8: things have gotten so expensive. Obviously since the pandemic, we've
• 6:10
  Speaker 8: spent a lot more money on experiences rather than just goods.
• 6:14
  Speaker 8: We've we've tended to spend on services. Demand for services
• 6:17
  Speaker 8: is up, prices for services are up. Even going to
• 6:19
  Speaker 8: see The Odyssey this weekend could cost.
• 6:22
  Speaker 9: A lot of money.
• 6:23
  Speaker 8: The tickets for IMAX are on sale on the secondary
• 6:25
  Speaker 8: market for several hundred dollars.
• 6:27
  Speaker 9: But this, I mean, if you have kids.
• 6:29
  Speaker 8: For instance, just going out for ice cream, just going out,
• 6:32
  Speaker 8: you know, to try to movie and pizza, can can
• 6:35
  Speaker 8: easily go into the hurre.
• 6:36
  Speaker 2: Toptic two hundred dollars and Brooklyn ones going to going
• 6:39
  Speaker 2: to the movies, right, got a whole meal at the
• 6:42
  Speaker 2: the whole mail and all that stagey.
• 6:43
  Speaker 3: I got to ask you.
• 6:44
  Speaker 2: I talked to Nashville today, I talked to Austin, Texas.
• 6:47
  Speaker 3: You know Boise Cold with Micron and the boom there.
• 6:51
  Speaker 3: I mean, part of.
• 6:52
  Speaker 2: This nation has explosively boom cities, don't they.
• 6:56
  Speaker 9: Oh yeah, yeah.
• 6:57
  Speaker 8: I grew up in Boise and right now everyone's talking
• 6:59
  Speaker 8: about them Micron millionaires.
• 7:01
  Speaker 1: So Micron is based.
• 7:02
  Speaker 3: In Should we congratulate you?
• 7:04
  Speaker 8: I tragically, I'm not a micro' sure I did.
• 7:10
  Speaker 9: I went into journalism.
• 7:11
  Speaker 8: I don't know what I was thinking, but yeah, I
• 7:14
  Speaker 8: mean it's the it's one of the biggest employers in
• 7:15
  Speaker 8: the state. It's been making ship since nineteen seventy two,
• 7:18
  Speaker 8: a lot of ups and downs, but now thanks to you, AI.
• 7:22
  Speaker 8: I mean, it's just it's going not to say.
• 7:24
  Speaker 3: I want to get this in. It's just too important.
• 7:26
  Speaker 2: We do personal finance, we do retirement, we do wealth management,
• 7:29
  Speaker 2: and Nikki Waller and Suzanne Willie have without question the
• 7:33
  Speaker 2: essay of the day. It comes to Marlin over at Fidelity.
• 7:36
  Speaker 2: I was shocked at the chart the jump condition in
• 7:40
  Speaker 2: healthcare costs for retirees.
• 7:42
  Speaker 6: Yeah, it is, absolutely, It's been rising for years.
• 7:45
  Speaker 1: And what we're seeing is that.
• 7:47
  Speaker 6: If you are retiring this year, your health cost that
• 7:50
  Speaker 6: you will pay out of pocket, if you're a couple,
• 7:52
  Speaker 6: it's up to three hundred and seventy one thousand dollars.
• 7:55
  Speaker 6: That is an almost eight percent jump from last year.
• 7:58
  Speaker 2: Is supposed to be almost like free, like fifteen thousand dollars.
• 8:02
  Speaker 1: Yeah, no, that doesn't happen anymore.
• 8:03
  Speaker 4: And if you're a genetser like David Gurrow myself, you're
• 8:06
  Speaker 4: also thinking about really paying for your parents' care and
• 8:08
  Speaker 4: saving for your kids college tuition.
• 8:10
  Speaker 1: At the same time. So this just adds to it.
• 8:12
  Speaker 1: We'll be working.
• 8:12
  Speaker 7: Forever incredibly don't think yes, I agree, Okay, David Gurrow,
• 8:16
  Speaker 7: thank you so much, thank you for coming in.
• 8:18
  Speaker 2: Nice to have you next time and bring something from
• 8:20
  Speaker 2: Red Side and maybe with you. Stacy Vanixmith thinking well
• 8:23
  Speaker 2: or thank you so much as well. You know, I
• 8:27
  Speaker 2: look at this and I know the theme of the show.
• 8:29
  Speaker 2: It should be called Bloomberg Inflation. It should be the.
• 8:31
  Speaker 1: You know brand.
• 8:34
  Speaker 3: But this has been a really stressful week.
• 8:36
  Speaker 2: I mean, yeah, I'm sorry that Wednesday it was like vibrating,
• 8:40
  Speaker 2: I know.
• 8:40
  Speaker 4: But it's calmed down a little bit here on this Friday,
• 8:43
  Speaker 4: and you know, next week we've got a lot to
• 8:44
  Speaker 4: look ahead to, especially this hyperscaler earnings, because it looks
• 8:47
  Speaker 4: like AI is driving this entire economy.
• 8:49
  Speaker 2: And everybody involved with Bloomberg money, retirement, wealth management, they
• 8:53
  Speaker 2: all own it, don't they. We don't want we're going
• 8:56
  Speaker 2: to talk about that. We have a wonderful lineup here
• 8:58
  Speaker 2: coming up. Edward Yardeni of your Denning research. He is
• 9:01
  Speaker 2: definitive across the linkage of economics into the markets.
• 9:06
  Speaker 3: He is a true decade optimist.
• 9:09
  Speaker 2: And your Denny on these oring twenties from New York City,
• 9:14
  Speaker 2: it is Bloomberg Money this weekend.
• 9:19
  Speaker 3: Here it ago. I'm not now maybe I'll go.
• 9:28
  Speaker 2: You're listening to Bloomberg Money, stay with us with more
• 9:31
  Speaker 2: to come after this.
• 9:38
  Speaker 3: Bloomberg Money.
• 9:39
  Speaker 2: A perfect Friday in New York City. We had someone
• 9:42
  Speaker 2: in from Austin to the scarlet one hundred and five degrees.
• 9:46
  Speaker 2: Hundred five degrees, they said in Austin some of the South.
• 9:49
  Speaker 2: You know you expect it as well, but did you
• 9:50
  Speaker 2: get your utility bill?
• 9:52
  Speaker 3: For what?
• 9:52
  Speaker 1: I want to look at it?
• 9:53
  Speaker 3: I looked at it last night. It's painful.
• 9:55
  Speaker 2: Yeah, after thought of the air conditioning twenty fourth and
• 10:00
  Speaker 2: for thirty days in a row.
• 10:02
  Speaker 3: Let's do this.
• 10:02
  Speaker 2: Let's look at inflation, look at our optimism within the markets.
• 10:05
  Speaker 3: Joining us now definitive on Wall Street.
• 10:08
  Speaker 5: It's C. J.
• 10:08
  Speaker 3: Lawrence.
• 10:09
  Speaker 2: Just a few years ago he helped invent the synthesis
• 10:12
  Speaker 2: of economics into stock market analysis. Ed Yard Danny joins
• 10:16
  Speaker 2: us your Denny research Ed. We got a one hour conversation.
• 10:19
  Speaker 3: We're going to cram in here.
• 10:21
  Speaker 2: I got a first go to the therapy that's needed
• 10:24
  Speaker 2: as you go to retirement, which is you've got Max, Chloe,
• 10:28
  Speaker 2: Cooper and Bailey at the Yard Denning House.
• 10:31
  Speaker 3: It's a four dog night, Yeah, it certainly is.
• 10:34
  Speaker 10: It's their king Charles Cavaliers and the cash potato dogs
• 10:37
  Speaker 10: are They're always on the couch and they're sleeping.
• 10:40
  Speaker 2: What are the canel fees to do? I mean, the
• 10:41
  Speaker 2: vet bill must be just like seriously off.
• 10:44
  Speaker 10: But child, you have to get health insurance for your dogs.
• 10:47
  Speaker 10: I mean it's it's that that's your Bloomberg? Were any advice?
• 10:51
  Speaker 10: Thank you very much.
• 10:54
  Speaker 3: Here let me go to the chart right now.
• 10:55
  Speaker 2: Pull up an important chart here coming out of COVID.
• 10:59
  Speaker 2: In an our over of twenty two, a guy named
• 11:02
  Speaker 2: Ankomport in the chart area in Yar Denny and the
• 11:05
  Speaker 2: Economics and Finance said, courage by here, what did you
• 11:11
  Speaker 2: see in October twenty two that gives you continued confidence
• 11:15
  Speaker 2: in the market.
• 11:15
  Speaker 10: Well, October twenty two was a very strange bear market.
• 11:20
  Speaker 10: Usually bear markets are associated with recessions. There was no recession.
• 11:24
  Speaker 10: As a matter of fact. At the time, I kept
• 11:26
  Speaker 10: saying that we are experiencing the most widely anticipated recession
• 11:30
  Speaker 10: of all times. That just isn't going to happen. It
• 11:32
  Speaker 10: was the goodeaux recession, if you will. I just kept
• 11:36
  Speaker 10: betting on the resilience of the economy, and so I
• 11:39
  Speaker 10: kind of viewed the bear market as the aberration rather
• 11:41
  Speaker 10: than the economy, which remained very strong. The earnings were
• 11:45
  Speaker 10: holding up reasonably well, so I kind of viewed that
• 11:48
  Speaker 10: as a panic attack. Now, look, there were good reasons
• 11:51
  Speaker 10: for concerns. The Fed was raising interest rates from zero
• 11:55
  Speaker 10: to five point five percent of the Fed funds rate,
• 11:57
  Speaker 10: the bond dealer was going up. Oil price has got
• 12:00
  Speaker 10: a big spike, and yet the resiliency economy came through remarkably.
• 12:04
  Speaker 3: Well.
• 12:05
  Speaker 10: We were betting on that, and we're still betting on
• 12:08
  Speaker 10: the resilience of the economy.
• 12:09
  Speaker 4: Yeah, So I want to take it to what we're
• 12:11
  Speaker 4: seeing right now. Because you said bonnialds were going up,
• 12:13
  Speaker 4: oil prices are going up. That's exactly what's happening now.
• 12:15
  Speaker 4: The stock market has kind of slowed down a little bit.
• 12:18
  Speaker 4: So the parallels between then and now, one could say
• 12:22
  Speaker 4: is noteworthy.
• 12:23
  Speaker 10: Well, there's definitely parallels, but one of the big differences
• 12:27
  Speaker 10: is earnings. We've got what I call you know, everybody
• 12:30
  Speaker 10: talks about FOMO fear of missing out. I'm talking about
• 12:33
  Speaker 10: FEMO and that is fabulous earnings momentum. We didn't have
• 12:37
  Speaker 10: that back in twenty twenty two. And it was really
• 12:41
  Speaker 10: at the end of twenty twenty twenty November that we
• 12:45
  Speaker 10: suddenly had chat GPT and AI revolution just starting.
• 12:49
  Speaker 3: And the arc of this.
• 12:51
  Speaker 2: And I just finished Justin BER's wonderful book on Ned
• 12:54
  Speaker 2: Johnson and you know the industry from Arisa nineteen seventy
• 12:57
  Speaker 2: four forward. My basic take is we've read tionalized in
• 13:01
  Speaker 2: ownership of bonds, which has been really difficult since twenty two.
• 13:05
  Speaker 2: Since twenty one as well, is the basic psychology of
• 13:09
  Speaker 2: retirement now afraid of stocks.
• 13:13
  Speaker 3: I don't think so. I think actually quite the opposite.
• 13:16
  Speaker 10: I think a lot of my friends are retiring where
• 13:19
  Speaker 10: the baby boomers. I'm still working for a living because
• 13:21
  Speaker 10: I don't play golf, so I don't know what I
• 13:23
  Speaker 10: would do with myself. I know by the way I
• 13:25
  Speaker 10: get seasick on cruises. My friends are all going on cruises.
• 13:28
  Speaker 10: They used to go one every three years, now they
• 13:30
  Speaker 10: go three a year. And I get text messages for
• 13:34
  Speaker 10: them saying, I don't know what you're doing, but keep
• 13:37
  Speaker 10: this market going up because we're spending money like crazy and.
• 13:40
  Speaker 2: Are not worthing suns. Last week's Girl it was brilliant
• 13:43
  Speaker 2: on this setting. The stock market's become the American retirements
• 13:47
  Speaker 2: It absolutely ends.
• 13:49
  Speaker 10: Do you know that the baby boomers have ninety trillion
• 13:52
  Speaker 10: dollars trillion trillion dollars of net worth and by the way,
• 13:56
  Speaker 10: there's still some people left from the so called silent
• 14:00
  Speaker 10: generation older than the Baby Boomers. They have twenty trillion dollars.
• 14:03
  Speaker 10: So we're talking over one hundred trillion dollars of retirement
• 14:07
  Speaker 10: net worth assets for the largest generation ever that is retiring.
• 14:13
  Speaker 1: Are they going to use that?
• 14:14
  Speaker 4: Are they going to actualize that, or are they going
• 14:16
  Speaker 4: to just pass it on to their You know, the.
• 14:18
  Speaker 10: Kids didn't listen and they did they didn't like we
• 14:20
  Speaker 10: didn't like their friends, and they were noisy.
• 14:22
  Speaker 3: So why leave them anything? Just spend like crazy.
• 14:26
  Speaker 10: But look, a lot of people have been talking about
• 14:28
  Speaker 10: the k economy that you know, the rich are getting
• 14:31
  Speaker 10: rich or the poor are getting poor. I think that's missus.
• 14:34
  Speaker 10: What's really going on, and that's the demography. We've got
• 14:37
  Speaker 10: a very very well off Baby Boom generation and they're
• 14:41
  Speaker 10: helping their younger children and grandchildren. The affordability crisis is
• 14:46
  Speaker 10: really old versus young retiring people. They don't really care
• 14:49
  Speaker 10: if the Fed titans retiring people really don't care much
• 14:54
  Speaker 10: about the labor market because they're retired. All they really
• 14:57
  Speaker 10: care about really is the stock market. How should our
• 15:00
  Speaker 10: audience of retirement, of personal finance, how should they synthesize
• 15:06
  Speaker 10: the FED madness? You and I remember when Arthur Burns
• 15:09
  Speaker 10: had smoke coming out of the pipe and we interpreted that.
• 15:12
  Speaker 3: Now we've got this parlor game.
• 15:14
  Speaker 2: How does ed your Denny filter that if it's for
• 15:17
  Speaker 2: long term investment.
• 15:19
  Speaker 10: Well, I think you focus on the economy, if you
• 15:21
  Speaker 10: believe in the resilience of the economy, if you believe
• 15:24
  Speaker 10: that the labor market is in balance. We got a
• 15:26
  Speaker 10: four point three percent unemployment rate, which is awfully good.
• 15:31
  Speaker 3: We have an inflation problem.
• 15:32
  Speaker 10: The FED is going to have to probably raise interest
• 15:35
  Speaker 10: rates at least once, maybe a second time, maybe even
• 15:38
  Speaker 10: a third time, according to where the two year treasury
• 15:41
  Speaker 10: no yield is right now, I think you kind of
• 15:44
  Speaker 10: grin and Barrett and try to enjoy your retirement life,
• 15:48
  Speaker 10: because I think the market will continue to defy the bears,
• 15:53
  Speaker 10: because the economy will continue to defy the pessimists.
• 15:57
  Speaker 4: You were saying that the boomers don't care about the
• 15:59
  Speaker 4: FED raising rate. They're going to enjoy their retirement.
• 16:01
  Speaker 1: I'm not a boomer.
• 16:02
  Speaker 4: I'm a gen xer, so I got to work for longer.
• 16:04
  Speaker 4: And I'm wondering whether a higher for longer interest rates
• 16:07
  Speaker 4: means that I have to rethink, reassess, pivot my investment strategy.
• 16:12
  Speaker 10: Well, the short answer is yes, But I'm not a
• 16:16
  Speaker 10: big fan of the higher for longer idea about interest rates.
• 16:19
  Speaker 10: I think interest rates are back to normal. In other words,
• 16:22
  Speaker 10: four to five ten year treasury body is a sign
• 16:25
  Speaker 10: of a very healthy economy. It's it's a yield that
• 16:29
  Speaker 10: made sense before the Great Financial Crisis. The aberration higher
• 16:33
  Speaker 10: for longer implies we're going to be going back to
• 16:35
  Speaker 10: the zero. I see what, You're closer to zero interest rates?
• 16:37
  Speaker 1: This is it, This is this is probably the abnormal.
• 16:40
  Speaker 10: Yeah, now, six six, six and a half percent, seven
• 16:42
  Speaker 10: percent mortgage rates came awfully high to a lot of
• 16:45
  Speaker 10: people compared to what compared to where they were when
• 16:48
  Speaker 10: the economy wasn't doing so well.
• 16:49
  Speaker 2: And I know that you're seeing the odyssey. I guess
• 16:52
  Speaker 2: it's tonight. You're going to see Friday today.
• 16:54
  Speaker 3: They don't know that you were writing a.
• 16:55
  Speaker 2: Newsletter in Sparta a few years ago. We all know
• 16:59
  Speaker 2: that the nineteen twenties Roaring twenties, it wasn't pretty. What
• 17:04
  Speaker 2: happens after the Yardeni Roaring twenties of this twenty first.
• 17:08
  Speaker 10: Century, Yeah, I'm trying to sort that out now. I
• 17:13
  Speaker 10: think that if the Roaring twenty twenties works, and then
• 17:19
  Speaker 10: in other words, that the economy doesn't have a recession,
• 17:21
  Speaker 10: the stock market continues to go up. I've got ten
• 17:24
  Speaker 10: thousands on the S and P five hundred by the
• 17:26
  Speaker 10: end of the decade. If that works, there's no particular
• 17:29
  Speaker 10: reason why it couldn't be the Roaring twenty thirties. As
• 17:33
  Speaker 10: a matter of fact, that talking about a decade is roaring.
• 17:37
  Speaker 10: That's what the stock market usually does during decades. I've
• 17:40
  Speaker 10: only been a few decades where the market was just
• 17:44
  Speaker 10: kind of flat, where it was a nothing kind of environment,
• 17:48
  Speaker 10: And certainly that was the nineteen thirties were terrible, and
• 17:53
  Speaker 10: the nineteen seventies were no picnic, and then the period
• 17:58
  Speaker 10: around the Great Financial Crisis was So We've had decades
• 18:02
  Speaker 10: where you made nothing, but there have been lots of
• 18:04
  Speaker 10: decades where the market's done very well.
• 18:07
  Speaker 2: Not just the nineteen twenties, be nice to the nineteen seventies.
• 18:11
  Speaker 2: We had Bob Seger and so we got through it somehow,
• 18:14
  Speaker 2: Ede and he's with us, and we'll continue with this.
• 18:16
  Speaker 4: You're bullish on the equity market, You've long been bullish
• 18:18
  Speaker 4: on the equity market. You talk about boomers, this generation
• 18:21
  Speaker 4: that is feeling pretty good with the giche that they've seen.
• 18:24
  Speaker 4: What'll surprise other people about how you spend, how you
• 18:28
  Speaker 4: save money given what has happened.
• 18:30
  Speaker 10: Well, I found over the years that I can't really trade,
• 18:36
  Speaker 10: I can't really manage my own money because I'm too
• 18:39
  Speaker 10: busy doing.
• 18:40
  Speaker 3: My day job.
• 18:41
  Speaker 10: And the other thing is there's been kind of a
• 18:44
  Speaker 10: conflict of interest if my portfolio suddenly is thinking and
• 18:47
  Speaker 10: turns me pessimistic, and then I'm writing pessimistic, and it's
• 18:50
  Speaker 10: kind of just reflecting my own personal angst. So I
• 18:54
  Speaker 10: try to basically stay an ETFs and.
• 18:58
  Speaker 3: Keep things somewhat liquid.
• 19:00
  Speaker 10: Also have stocks and bonds, but mostly in an ETF portfolio.
• 19:04
  Speaker 4: How far out do you go? How colorful do you
• 19:05
  Speaker 4: go to your ETFs?
• 19:07
  Speaker 10: Well, you know, as I as I get old, as
• 19:09
  Speaker 10: I get older, I don't need bonds that go to
• 19:11
  Speaker 10: for thirty years, so maybe, you know, maybe I should
• 19:14
  Speaker 10: do that. Maybe I think you should say my triple
• 19:17
  Speaker 10: leveraged all cash, it would be secure.
• 19:19
  Speaker 3: Yeah.
• 19:20
  Speaker 10: But basically, I believe in the market. I believe that,
• 19:23
  Speaker 10: you know, the S and P five hundred has been
• 19:27
  Speaker 10: awfully good, and even better has been the Nasdaq one hundred.
• 19:31
  Speaker 10: Technology has been a leading sector in our economy.
• 19:35
  Speaker 4: Okay, So it looks like growth all the way for
• 19:36
  Speaker 4: doctor Eduard Denny.
• 19:37
  Speaker 10: Yeah, and I think you know a lot of these
• 19:38
  Speaker 10: so called Trump accounts probably will get.
• 19:41
  Speaker 3: Invested that way.
• 19:42
  Speaker 4: All right, of your Denny Research, Bloomberg Money.
• 19:50
  Speaker 2: Good afternoon everyone, Tom keenan scarlet. If we've got to
• 19:52
  Speaker 2: do a data check, it's not as frenzy as Wednesday
• 19:54
  Speaker 2: or Thursday, but you know, there it is.
• 19:56
  Speaker 4: It's calmed down quite a bit. In fact, we started
• 19:58
  Speaker 4: the day kind of unchanged. Now we're at session highs
• 20:01
  Speaker 4: the S and P five hundred gaining two thirds of
• 20:03
  Speaker 4: one percent for the week.
• 20:04
  Speaker 1: However, we're still looking at two straight.
• 20:06
  Speaker 4: Weeks of losses and the Vics coming down to seventeen
• 20:08
  Speaker 4: and a half.
• 20:09
  Speaker 2: John gallibed seaport he had thirty four percent. I believe
• 20:12
  Speaker 2: it is of SPX is next week's number. He is
• 20:15
  Speaker 2: shape huge renumber cross hand set is the way we roll.
• 20:18
  Speaker 2: We look at equities, bonds, currencies, commodities. Oil pulls back.
• 20:22
  Speaker 2: That's American oil from a ninety two back to eighty eight.
• 20:26
  Speaker 2: D xy premnch solid. Your strong dollar watched again over
• 20:30
  Speaker 2: the weekend, and again equity markets are up today.
• 20:33
  Speaker 4: All right, Well, you know the thing that so many
• 20:35
  Speaker 4: families save for higher education, It's in trouble. Costs are
• 20:39
  Speaker 4: out of control, schools are closing, and Americans are increasingly
• 20:41
  Speaker 4: questioning the return on investment of a college degree. This
• 20:45
  Speaker 4: was the thrust of a Bloomberg News story written by
• 20:47
  Speaker 4: Liam Knox, our education policy reporter who finds himself in
• 20:51
  Speaker 4: New York.
• 20:51
  Speaker 1: So we brought him in. Thank you so much, Liam.
• 20:53
  Speaker 4: Having it so, I want to focus on grad school programs,
• 20:56
  Speaker 4: which you recently wrote about. Master's and PhD programs are
• 21:00
  Speaker 4: in even bigger trouble than college programs as a whole.
• 21:02
  Speaker 1: Why is that?
• 21:03
  Speaker 11: Well, there are many factors to that, but right now,
• 21:05
  Speaker 11: chief among them is President Donald Trump. The Trump administration
• 21:09
  Speaker 11: has been working to reshape higher education in general, but
• 21:13
  Speaker 11: a kind of perfect storm of political threats has hit
• 21:17
  Speaker 11: master's programs and PhD programs especially hard. There's the crackdown
• 21:22
  Speaker 11: on student visa applicants and international students, who make up
• 21:26
  Speaker 11: a disproportionate amount of grad students in this country compared
• 21:30
  Speaker 11: to undergrads. There is the curtailing of federal research money
• 21:34
  Speaker 11: and the huge historic uncertainty around that relationship between the
• 21:38
  Speaker 11: federal government and research universities, which are hitting grad programs
• 21:42
  Speaker 11: especially hard, PhD programs in particular, but also master's programs,
• 21:46
  Speaker 11: particularly in stem fields. And then there's also new strict
• 21:51
  Speaker 11: limits on federal lending for grad students who used to
• 21:54
  Speaker 11: be able to borrow practically unlimited amounts of money to
• 21:57
  Speaker 11: attend grad school and are now going to have some
• 21:59
  Speaker 11: pretty strict new caps on that lending.
• 22:02
  Speaker 4: And a lot of people say that it was those
• 22:04
  Speaker 4: uncapped loans that kind of fueled the rise of grad
• 22:06
  Speaker 4: school programs, making them the cash cow for universities. I
• 22:09
  Speaker 4: actually recently sat down with Ken Ridguero of a cent
• 22:12
  Speaker 4: Funding about student borrowing from the private loan perspective, because
• 22:15
  Speaker 4: they're a private lender.
• 22:16
  Speaker 1: Let's take a listen, and.
• 22:18
  Speaker 12: About fifty to seventy five percent of the student situation.
• 22:23
  Speaker 12: The private sector can support the student with all the
• 22:26
  Speaker 12: borrowing they need at rates that are either a little
• 22:30
  Speaker 12: less than the current federal loan or a little bit
• 22:33
  Speaker 12: higher than the federal loan.
• 22:34
  Speaker 4: Why is there a difference in the rate that some
• 22:37
  Speaker 4: private lenders would charge versus the federal government.
• 22:40
  Speaker 12: The federal government doesn't pull credit. Credit is priced relative
• 22:44
  Speaker 12: to the expectation of repayment. So when there's a high
• 22:48
  Speaker 12: expectation of repayment, then we can give very very low
• 22:52
  Speaker 12: interest rates lower than the federal government.
• 22:55
  Speaker 4: Okay, so the economics are clearly changing for a grad school.
• 22:59
  Speaker 4: What are the schools themselves doing in response to this?
• 23:01
  Speaker 4: How are they dealing with this?
• 23:03
  Speaker 11: Some of the wealthiest schools are able to kind of
• 23:04
  Speaker 11: be more flexible, and some of them are actually setting
• 23:08
  Speaker 11: up their own federal loan programs with rather their own
• 23:11
  Speaker 11: loan programs to replace federal landing streams. Yale at this,
• 23:14
  Speaker 11: You Pen did this, and Harvard is doing it. Others
• 23:17
  Speaker 11: are going to be hedging by enrolling more undergraduate students.
• 23:21
  Speaker 11: The ones that can do that, that have deep applicant pools,
• 23:24
  Speaker 11: big brand names, money to expand physically their campuses. Colombia's
• 23:30
  Speaker 11: doing this the University of Chicago, Dartmouth College, other schools
• 23:34
  Speaker 11: that don't have the same kinds of brand name recognition.
• 23:37
  Speaker 11: They're setting up online programs, cheaper programs.
• 23:40
  Speaker 1: And things like AI.
• 23:41
  Speaker 11: But a lot of colleges are stretched too thin to
• 23:43
  Speaker 11: really adapt and are going to really feel this hit
• 23:46
  Speaker 11: them very hard financially.
• 23:48
  Speaker 4: All Right, they're going to have to come up with
• 23:49
  Speaker 4: some solution. Liam Knox, thank you so much. Our education
• 23:51
  Speaker 4: policy reporter normally in Washington, but here in New York
• 23:54
  Speaker 4: for the day, came.
• 23:55
  Speaker 3: Into the office. He did massive work from office. It's
• 23:59
  Speaker 3: a whole new thing.
• 24:00
  Speaker 1: We appreciate it.
• 24:00
  Speaker 2: We appreciate it. When we put Bloomberg money together. One
• 24:04
  Speaker 2: of the first names I said is we have to
• 24:06
  Speaker 2: have Tricia Scarlatta on.
• 24:08
  Speaker 3: She's head of Education Savings at JP Morgan Boring.
• 24:12
  Speaker 2: Like articles in five twenty nine's in this she brings
• 24:15
  Speaker 2: an energy and verve to this agony like no one
• 24:20
  Speaker 2: I know.
• 24:20
  Speaker 3: We're thrilled she could join us today.
• 24:23
  Speaker 2: Why is Wellesley one hundred thousand bucks a room board intuition?
• 24:27
  Speaker 9: He started so nicely, Tom, I think, look because people
• 24:30
  Speaker 9: want to go there, because everybody sees you kids on
• 24:33
  Speaker 9: social media having a great time, and every kid wants
• 24:36
  Speaker 9: to experience the same thing. When there's demand, there's demand,
• 24:39
  Speaker 9: people will pay.
• 24:40
  Speaker 2: So there's a top one hundred schools, the top two
• 24:42
  Speaker 2: hundred and fifty schools, there's a.
• 24:44
  Speaker 9: Top everything school don't if you read you could see
• 24:46
  Speaker 9: there's top party schools. There's top schools for degrees, and
• 24:50
  Speaker 9: there's top schools for experiences. So the competition is out
• 24:54
  Speaker 9: there and there are people that pay.
• 24:55
  Speaker 2: I mean a school like Cornell or Wellesley, Scarlett. You
• 24:58
  Speaker 2: look at it, what twenty app cancer one gets in.
• 25:01
  Speaker 1: I think that ratio is a lot smaller than I think.
• 25:03
  Speaker 9: It is a lot smaller.
• 25:04
  Speaker 1: Yeah, that's no work close. Okay.
• 25:06
  Speaker 4: My question is, given how much Wellsley or Cornell costs
• 25:09
  Speaker 4: right now, five twenty nine plans are meant to help
• 25:12
  Speaker 4: people save to pay up for that. Do we need
• 25:14
  Speaker 4: the five twenty nine plans to do much more than
• 25:16
  Speaker 4: what they're currently built to do.
• 25:18
  Speaker 5: No.
• 25:19
  Speaker 9: I think if you're doing it the right way, I
• 25:21
  Speaker 9: think what's the right way. The right way is starting
• 25:23
  Speaker 9: as early as possible, right, And so that's the problem
• 25:26
  Speaker 9: is is that most people just avoid it. They and look, Also,
• 25:30
  Speaker 9: problem is life is expensive, and it's hard to balance
• 25:33
  Speaker 9: all these things, retirement, saving for emergency, saving for college.
• 25:36
  Speaker 9: But if you start early right and save often, you
• 25:41
  Speaker 9: can do it. But the issue is people don't start
• 25:44
  Speaker 9: early enough. They don't they don't actually save and invest
• 25:48
  Speaker 9: early enough. So I do think that they can help
• 25:51
  Speaker 9: you get there for sure. I think the responsibility of parents, though,
• 25:55
  Speaker 9: is also being realistic. Know what you can afford. Not
• 25:59
  Speaker 9: everybody body has to go to Welles. Not everybody has
• 26:01
  Speaker 9: to go to the fancy school exactly. There's plenty of options.
• 26:05
  Speaker 3: What's the everg school cost?
• 26:06
  Speaker 2: If we're talking about the drama of one hundred thousand
• 26:09
  Speaker 2: NYU willsy?
• 26:09
  Speaker 3: What's the average.
• 26:10
  Speaker 9: Cost of america average private school today? They say is sixty.
• 26:14
  Speaker 3: Five thousand, sixty five.
• 26:16
  Speaker 9: That's assuming somebody's getting it.
• 26:17
  Speaker 2: We went out, we did a very careful survey. Here
• 26:20
  Speaker 2: went out in the street. We dragged into the studio
• 26:22
  Speaker 2: someone to talk about the future eighteen years out. Let's
• 26:27
  Speaker 2: listen for me.
• 26:28
  Speaker 13: I have a six month old son, Godulate, thank you,
• 26:31
  Speaker 13: and the team college savings team was calculating for me
• 26:35
  Speaker 13: how much it could cost in eighteen years to spend
• 26:38
  Speaker 13: his seven figures get my Alma Mater pen and they
• 26:42
  Speaker 13: estimate it could cost eight hundred thousand dollars. I think
• 26:45
  Speaker 13: separating right, you have your retirement money, which was still
• 26:48
  Speaker 13: really important to continue saving for what we see is
• 26:51
  Speaker 13: a lot of families end up actually using their retirement money.
• 26:54
  Speaker 2: He borrow from it because eight hundred thousand dollars and
• 26:57
  Speaker 2: I mean, you know it's gabriella scientists of course.
• 27:01
  Speaker 3: As well. So when you start, how do you start?
• 27:05
  Speaker 9: Well, well, if you want to pay for eight hundred
• 27:08
  Speaker 9: thousand dollars, you've got to be saving a couple thousand
• 27:10
  Speaker 9: dollars a month. It's a lot of money. So how
• 27:13
  Speaker 9: do you start. You start, like I said, when the
• 27:15
  Speaker 9: baby programs. Yeah, and I think you start when the
• 27:18
  Speaker 9: baby is born if you're expecting. Look that My my
• 27:21
  Speaker 9: most favorite clients are the ones that are actually starting
• 27:23
  Speaker 9: before they have a child, you know, and actually putting
• 27:26
  Speaker 9: money away before.
• 27:27
  Speaker 4: What a kiss, Just give us money for the kids.
• 27:29
  Speaker 9: I'll tell you it's so true. So really, but here's
• 27:32
  Speaker 9: the thing. You don't need to save one hundred percent.
• 27:35
  Speaker 9: Anything that you're putting away and investing is going.
• 27:38
  Speaker 1: To be less in the future.
• 27:40
  Speaker 2: Well you just heard there, folks, with precious scarletta bronze.
• 27:43
  Speaker 2: It this idea of saving for it all, particularly if
• 27:47
  Speaker 2: you have multiple children like you're doing.
• 27:49
  Speaker 3: You're like, oh, you think that's funny, Bronze that you
• 27:52
  Speaker 3: don't have to do it all.
• 27:53
  Speaker 9: You don't have to do it all, but be educated. Understand,
• 27:57
  Speaker 9: like you mentioned earlier, the return on investment. You know,
• 28:00
  Speaker 9: think about what is the return, what is the degram
• 28:03
  Speaker 9: not saying one degree is less valuable than another, but
• 28:05
  Speaker 9: monetarily there are differences. So so really go into it
• 28:10
  Speaker 9: understanding what is the cost of this institution, what is
• 28:13
  Speaker 9: the return going to be on that cost? And look
• 28:16
  Speaker 9: at state schools, there's plenty of options. Kids also go
• 28:19
  Speaker 9: half the time. They'll do start the first two years
• 28:21
  Speaker 9: in a community school and then do another That's I
• 28:25
  Speaker 9: know what it's a changing It's half the cost, it's
• 28:28
  Speaker 9: half the cost. If you do that, no one cares
• 28:30
  Speaker 9: where you went. They just want to know where you
• 28:31
  Speaker 9: got your degree from.
• 28:33
  Speaker 4: So this month also saw the introduction of the trump
• 28:35
  Speaker 4: accounts for babies. Does that change a saving hierarchy for parents?
• 28:39
  Speaker 4: I mean, which do prioritize if you can't put money
• 28:41
  Speaker 4: into both?
• 28:43
  Speaker 9: So that's a really great question, I think a Trump
• 28:45
  Speaker 9: account should be looked at as a wealth building account,
• 28:48
  Speaker 9: an early retirement plan. It should not really be looked
• 28:51
  Speaker 9: at for an education savings plan. So for those who
• 28:54
  Speaker 9: are going to get that seed money, you absolutely want
• 28:57
  Speaker 9: to get that free money, that thousand dollars. Today there's
• 29:00
  Speaker 9: about one point seven million people who have already gotten
• 29:03
  Speaker 9: that right, and so there's a lot more that are eligible.
• 29:06
  Speaker 9: So you want to get that seed money, for sure.
• 29:09
  Speaker 9: But for people that have to make a choice between
• 29:12
  Speaker 9: do I put money in a Trump account for education
• 29:14
  Speaker 9: or do I go five twenty nine, in my opinion,
• 29:16
  Speaker 9: you go five twenty nine because of the tax benefits,
• 29:19
  Speaker 9: for sure.
• 29:20
  Speaker 3: And then there's down the road.
• 29:21
  Speaker 2: Let's look at Tricia skyl out of writing in January. Here,
• 29:24
  Speaker 2: it's a money mustere for you this afternoon. One in
• 29:27
  Speaker 2: six they own federal student loans with an average of
• 29:30
  Speaker 2: thirty nine thy four hundred. It's four hundred and forty
• 29:34
  Speaker 2: five dollars every month could go for other financial priorities.
• 29:39
  Speaker 2: That's the reality, and some of those numbers are much
• 29:41
  Speaker 2: bet higher for people.
• 29:42
  Speaker 9: They're just putting off a lot because they have this debt.
• 29:44
  Speaker 9: So you're graduating college you're earning an income. You can't
• 29:47
  Speaker 9: move out, you can't move forward in life because you
• 29:49
  Speaker 9: have this, and then you have you know, parents who
• 29:51
  Speaker 9: take on debt take on more debt typically than the child,
• 29:55
  Speaker 9: and they're delaying their retirement.
• 29:57
  Speaker 4: So another question here about five twenty nine because I
• 30:00
  Speaker 4: think there's a lot of misconceptions and misperceptions about it too.
• 30:03
  Speaker 4: It's a lot more flexible than people realize. I mean,
• 30:05
  Speaker 4: Tom can use it for his grandchildren too.
• 30:07
  Speaker 9: You absolutely can. And another difference between a Trump account
• 30:10
  Speaker 9: of a five to twenty nine a Trump account has
• 30:12
  Speaker 9: to be opened by a parent or a guardian. Five
• 30:14
  Speaker 9: twenty nine account. Anyone can open the account.
• 30:16
  Speaker 4: I can open one to more if I wanted to
• 30:17
  Speaker 4: go back to school.
• 30:18
  Speaker 9: Yes, and you can open one for my kids if
• 30:19
  Speaker 9: you'd like. So, I mean, look, I think it's a
• 30:22
  Speaker 9: lot of flexibility. And again, I think the misconception is
• 30:24
  Speaker 9: that it's only for two and four year institutions. It's
• 30:27
  Speaker 9: much wider.
• 30:28
  Speaker 1: Now.
• 30:29
  Speaker 2: I just believe that Tricia Scarlotta has a statistic how
• 30:32
  Speaker 2: many people pay full boat.
• 30:35
  Speaker 9: It's about forty ish percent, probably one hundred percent of
• 30:39
  Speaker 9: our audience.
• 30:40
  Speaker 2: Yes, because you know, you look at the FAFSA, and
• 30:43
  Speaker 2: you go, you're kidding me, And so then there you are.
• 30:46
  Speaker 2: And if a kid can't put the puck in the
• 30:48
  Speaker 2: net when you were full boat at Cornell for hockey, right.
• 30:52
  Speaker 1: Oh, clearly, clearly.
• 30:54
  Speaker 3: But if he's put the puck in the net, it's
• 30:56
  Speaker 3: full boat.
• 30:57
  Speaker 9: It's full boat, it really is. And a lot of
• 30:59
  Speaker 9: these schools they you know, you get you get schools
• 31:01
  Speaker 9: like Villanova, Boston College. They don't need to give any
• 31:05
  Speaker 9: money because there are so many people lined up that
• 31:07
  Speaker 9: want to go there. So the University of Michigan, you know,
• 31:10
  Speaker 9: all those schools, they don't need to give them.
• 31:12
  Speaker 3: We just want to go to Villanova because of Jalen.
• 31:14
  Speaker 3: I mean, there's the reason.
• 31:16
  Speaker 9: Day Yeah, I mean, you know I wanted to go
• 31:18
  Speaker 9: to Villanova too, I didn't I want what's.
• 31:19
  Speaker 2: The number one question you get on a road working
• 31:21
  Speaker 2: for JP Morgan? What's the number one question in seminar as.
• 31:24
  Speaker 9: You get interesting? Now, it's about the roth Ira. Everyone
• 31:27
  Speaker 9: asks about the roth Ira. So people don't save enough
• 31:29
  Speaker 9: and invest enough in a five to twenty nine account,
• 31:31
  Speaker 9: but they're always so worried that I'm going to have
• 31:32
  Speaker 9: too much money in the account. Why is that that
• 31:35
  Speaker 9: is the biggest fear. I'm going to have too much money.
• 31:38
  Speaker 9: Yet I don't put enough money away, but I'm worried
• 31:40
  Speaker 9: I'm going to have too much. Then one of my options,
• 31:42
  Speaker 9: so now it's it really has helped us having the
• 31:45
  Speaker 9: flexibility of the roth Ira rollover, so that that this
• 31:48
  Speaker 9: year is the biggest question is Okay, I'm going to
• 31:51
  Speaker 9: if I'm overfunded, what can I do? And a great
• 31:54
  Speaker 9: people feel much better that they could do the rollover.
• 31:56
  Speaker 4: It just speaks again to the misperceptions and misconceptions out
• 31:59
  Speaker 4: there about all of this.
• 32:00
  Speaker 9: People are so afraid that they're going to put this
• 32:01
  Speaker 9: money away and the kid's not going to go to school.
• 32:03
  Speaker 9: Reality is seventy percent of kids go to school. And
• 32:05
  Speaker 9: like you said, it's not just for It's not just
• 32:07
  Speaker 9: two and four year institutions. You can vocation apprenticeship in economics.
• 32:12
  Speaker 9: You can go to a park twenty nine for you.
• 32:14
  Speaker 3: I need a five twenty.
• 32:15
  Speaker 2: The biggest problem there is a five twenty nine used
• 32:17
  Speaker 2: to be terribly restrictive. Right Fossils like me don't realize
• 32:21
  Speaker 2: how constructive it is.
• 32:23
  Speaker 9: Now correct And when you think about a qualified withdrawal,
• 32:27
  Speaker 9: I always use this as an example. Every child's qualified
• 32:29
  Speaker 9: withdrawal is going to be different. I have a child
• 32:31
  Speaker 9: who's a musician going for music. A qualified withdrawal for
• 32:34
  Speaker 9: him is the pedals for his equipment is the production
• 32:37
  Speaker 9: because he's a music major. But then if I got
• 32:40
  Speaker 9: an econ major, I can't use as a qualified withdrawal
• 32:43
  Speaker 9: a guitar. But it is going to be what that
• 32:46
  Speaker 9: child needs to get the degree is a qualified withdrawal.
• 32:50
  Speaker 9: It could be books for sure, it could be computer.
• 32:53
  Speaker 9: It's equipment, So think it's very expansive.
• 32:57
  Speaker 2: Your child needs the even tied H nine need a
• 33:01
  Speaker 2: new H nine pedal, it's exquisite.
• 33:04
  Speaker 9: You've had my Conrad on. We go to Mike all
• 33:07
  Speaker 9: the time. He's an incredible guitarist and he taels us
• 33:09
  Speaker 9: what he doesn't need.
• 33:11
  Speaker 1: Jisha, thank you so much for joining us today.
• 33:13
  Speaker 9: My pleasure.
• 33:13
  Speaker 4: Here's just scar a lot of JP Morgan Asset Management
• 33:16
  Speaker 4: coming up on Bloomberg Money, the money, the man, the
• 33:19
  Speaker 4: muse why people are digging deep into their pockets and
• 33:22
  Speaker 4: splashing the cash to see the odyssey.
• 33:25
  Speaker 1: You're going to go this weekend, right.
• 33:26
  Speaker 2: I'm not going this weekend, but I got to admit
• 33:29
  Speaker 2: across a cross section of people.
• 33:30
  Speaker 4: What a huge was I loved it and I wasn't
• 33:33
  Speaker 4: expecting to love it. This is Bloomberg Money, but Robert
• 33:37
  Speaker 4: Pattinson speaking an American accent, that was odd.
• 33:39
  Speaker 3: I'm not.
• 33:47
  Speaker 2: You're listening to Bloomberg Money. Stay with us with more
• 33:50
  Speaker 2: to come after this.
• 33:54
  Speaker 4: Bloomberg Money is your destination for personal finance is a
• 33:57
  Speaker 4: cross platform effort that extends beyond your TV, including our
• 34:00
  Speaker 4: new digital hub at Bloomberg dot Com, Slash Money and tom.
• 34:04
  Speaker 1: One of the.
• 34:04
  Speaker 4: Highlights this week is about the odyssey the movie got
• 34:07
  Speaker 4: to be and how some people are spending thousands of
• 34:09
  Speaker 4: dollars to watch it in It's full Imax Blender amazing.
• 34:12
  Speaker 2: I mean, I know IMAX from long, long ago, but
• 34:15
  Speaker 2: people say this is the IMAX and you have to
• 34:17
  Speaker 2: see it.
• 34:18
  Speaker 4: Well, this was the first movie that was built with
• 34:20
  Speaker 4: IMAX in mind. So joining us now to discuss as
• 34:22
  Speaker 4: Bloomberg Money reporter Sarah Foster and Sarah you guys went
• 34:26
  Speaker 4: out and talked to a whole bunch of people who
• 34:28
  Speaker 4: like figured this out a year ago and booked their
• 34:30
  Speaker 4: tickets in advance to see this on Imax.
• 34:33
  Speaker 5: My colleagues Michelle and Ponza, Michael Barkley. They really tracked
• 34:37
  Speaker 5: down some big spenders here. Some people were willing to
• 34:40
  Speaker 5: spend five hundred dollars travel cross country to see this,
• 34:44
  Speaker 5: as Chris Nolan intended. Others were even telling stories about
• 34:48
  Speaker 5: how they were staying up all night, you know, going
• 34:50
  Speaker 5: twenty four hours without sleep. What this really shows me
• 34:54
  Speaker 5: is that when you have these big cultural events like this,
• 34:57
  Speaker 5: young people in particular really are down to spend big
• 35:01
  Speaker 5: and to just be in the moment.
• 35:02
  Speaker 2: It's just kind of it's about this experiential thing. I mean,
• 35:05
  Speaker 2: which angels to get. I mean, it's it's beyond me.
• 35:07
  Speaker 2: But the answer is people like FIFA, like.
• 35:09
  Speaker 1: The World Cup, or like meet Together.
• 35:11
  Speaker 3: They like being together. They want to spend some money
• 35:13
  Speaker 3: to do it.
• 35:13
  Speaker 4: Right right, and they want to be able to hear
• 35:15
  Speaker 4: the waves crashing in the movie again and it's full.
• 35:18
  Speaker 4: I'm explunder because it's loud. It's like a spectacle.
• 35:21
  Speaker 5: I think there's even something to be said about this
• 35:24
  Speaker 5: new version of luxury. You know, only twenty five theaters
• 35:28
  Speaker 5: in the US can show it the way krisnal And intended,
• 35:30
  Speaker 5: only forty one worldwide.
• 35:32
  Speaker 9: You know, it's almost a three hour runtime.
• 35:34
  Speaker 3: For a movie. Is it three hours?
• 35:35
  Speaker 1: You could be there and see it, you know you want?
• 35:37
  Speaker 2: So when you saw Scarlet, was it were you dragon here?
• 35:40
  Speaker 2: Where you're like, you know? Two hours thirty mins?
• 35:42
  Speaker 1: That was a little skeptical. I went in there. I
• 35:44
  Speaker 1: had to have a drink beforehand because I was like, I'm.
• 35:46
  Speaker 2: Shut, okay, can you make a banner please? Food at
• 35:50
  Speaker 2: the Odyssey had to have a beverage of her chore.
• 35:52
  Speaker 4: I had to have a drink ahead of time. But
• 35:54
  Speaker 4: I sat there through the whole thing and it was great.
• 35:56
  Speaker 3: Our books for the week. This is a joy and
• 35:58
  Speaker 3: an honor.
• 35:59
  Speaker 2: You go toge if you're ever so lucky, you have
• 36:01
  Speaker 2: a professor that can get it done. Barry Strauss is
• 36:05
  Speaker 2: definitive at Cornell and you had him in class. What
• 36:09
  Speaker 2: is it like to have the giant Barry Strauss lecturing
• 36:12
  Speaker 2: you on the Trojan War?
• 36:13
  Speaker 10: You know?
• 36:13
  Speaker 4: It was pretty cool because I did not know about
• 36:16
  Speaker 4: him beforehand. I took a class with him and another
• 36:19
  Speaker 4: professor where they compared the Korean War and the Peloponnesian War.
• 36:22
  Speaker 4: So it was like this cross historical analysis. It was
• 36:25
  Speaker 4: really really interesting. And then you pick that book, so
• 36:28
  Speaker 4: I know you can.
• 36:29
  Speaker 2: I picked it out of the blue, but folks, I
• 36:30
  Speaker 2: can't say enough about it. If you want to learn
• 36:32
  Speaker 2: about this beyond Matt Damon's good looks, the answer is
• 36:36
  Speaker 2: Professor Strauss of Cornell owns eye.
• 36:38
  Speaker 4: Ground absolutely and his book separates reality from myth. Right
• 36:42
  Speaker 4: Helen of Troy was a catalyst myth reality. It is
• 36:44
  Speaker 4: about control of shipping routes in the agenc which Matt
• 36:48
  Speaker 4: Damon actually says to Anne Hathaway in the movie. They
• 36:50
  Speaker 4: kind of whisper it, but it's there. So I just
• 36:52
  Speaker 4: gave you a spoiler. Your book is tied to the
• 36:55
  Speaker 4: Odyssey and to Homer. My book of the Week is
• 36:58
  Speaker 4: about Homer Wibson and his family and the people who
• 37:03
  Speaker 4: created the show and wrote for the show, like co
• 37:04
  Speaker 4: Conan O'Brien. It's called stupid TV. Be more funny how
• 37:07
  Speaker 4: the golden era of the Simpsons changed television in America forever.
• 37:11
  Speaker 1: Are you a Simpsons fan?
• 37:12
  Speaker 5: I am a Simpsons fan. It's hard not to be.
• 37:14
  Speaker 3: It's amazing how people are or they're not.
• 37:17
  Speaker 9: Are you not?
• 37:18
  Speaker 3: No, I'm a huge fan. Okay fan, I think the craft.
• 37:22
  Speaker 2: I could go on all day about this, but you know,
• 37:24
  Speaker 2: I mean, I think it's it's interesting. I was looking
• 37:27
  Speaker 2: up Homer and they thought on AI, they thought I
• 37:30
  Speaker 2: wanted Homer Simpsons, and.
• 37:31
  Speaker 1: They would be right. That's what I picked. Who's your
• 37:33
  Speaker 1: favorite Simpson's character.
• 37:37
  Speaker 2: You could go all day about it. I think I
• 37:39
  Speaker 2: like the soccer ones. We do the football ones on
• 37:42
  Speaker 2: the soccer I mean, it's great, and I think you
• 37:46
  Speaker 2: could do both. Frankie the heart of as it matters.
• 37:48
  Speaker 2: You can do Homer Simpson and Homer from a few
• 37:50
  Speaker 2: years ago with Odyssey as well.
• 37:52
  Speaker 4: Homer Simpson is most people's favorite character. Mine is kind
• 37:54
  Speaker 4: of a tangangial because it's a world building exercise.
• 37:57
  Speaker 1: The Simpsons.
• 37:58
  Speaker 4: I liked Patty and Selma, Marge's older sisters or the DMV. Yeah,
• 38:02
  Speaker 4: and there they are at Orlando Universal. The expression is priceless.
• 38:07
  Speaker 1: Tom.
• 38:08
  Speaker 2: They look like we're in the Bloomberg money planning meeting Tuesday.
• 38:12
  Speaker 2: That's what That's what it looks like.
• 38:15
  Speaker 1: Sara, do you have a favorite Simpsons character? Definitely Lisa Oh.
• 38:19
  Speaker 1: I identify with Lisa. She's ahead of her time, very
• 38:22
  Speaker 1: similar to her.
• 38:24
  Speaker 4: Lisa, by the way, predicted that Donald Trump would become
• 38:27
  Speaker 4: president toward the Simpsons did overall, so you know, there's
• 38:29
  Speaker 4: a lot of true telling in the Simpsons. Sarah Foster,
• 38:31
  Speaker 4: Thank you, nank you, Bloomberg Money reporter Sarah Foster. For
• 38:34
  Speaker 4: the latest reviews and recommendations from Bloomberg. Subscribe to the
• 38:37
  Speaker 4: on Books newsletter.
• 38:42
  Speaker 2: Welcome back to Celebrity Loadstone. It's sound Kay with Scarlet Fruit.
• 38:46
  Speaker 2: We've been talking about some of the people that like
• 38:48
  Speaker 2: to listen to us on the radio, Scarlett in the
• 38:51
  Speaker 2: Morning and myself as well, and of course here on television,
• 38:54
  Speaker 2: and it's just sort of like humbling, like they want
• 38:57
  Speaker 2: to know about economics, finance, sort of finance and also
• 39:01
  Speaker 2: wealth management.
• 39:02
  Speaker 4: It's a lot of people are emailing you out of
• 39:04
  Speaker 4: the blue who like I that's great.
• 39:08
  Speaker 2: One day, I'm at JFK and I'm by the luggage
• 39:11
  Speaker 2: wrap next to this girl and everyone's looking at me,
• 39:15
  Speaker 2: and then they figured out that weren't looking at me.
• 39:17
  Speaker 2: I'm standing where this this woman and everybody's like, you know, da,
• 39:20
  Speaker 2: da da da.
• 39:21
  Speaker 3: It's Emily Blunt. And I was the only one in
• 39:23
  Speaker 3: the terminal who didn't know who she was.
• 39:25
  Speaker 4: My gosh, all right, well there you go. Maybe I'll
• 39:28
  Speaker 4: see Emily Blunt this weekend. Maybe you'll see you know,
• 39:31
  Speaker 4: another celebrity like.
• 39:31
  Speaker 1: That game this weekend.
• 39:32
  Speaker 4: Let's look ahead to the weekend and to next week.
• 39:35
  Speaker 4: Bloomberg This Weekend's Lisa Mitteil joined this out in studio.
• 39:39
  Speaker 1: What do you have your eye on?
• 39:40
  Speaker 14: Yeah, we're looking at Comic Con. Okay, this is this
• 39:43
  Speaker 14: is the nation. Emily there no think she'll be there,
• 39:47
  Speaker 14: but some of your favorite maybe at Chris Hemwerck, maybe whoever.
• 39:50
  Speaker 1: But you have all these folks.
• 39:51
  Speaker 14: Okay, so we're not just talking comics, right, we're talking TV.
• 39:54
  Speaker 9: We're talking gaming.
• 39:56
  Speaker 14: Gaming is huge for these You have all these people
• 39:58
  Speaker 14: dressed up. Cosplays a chorus, big thing for it. So
• 40:01
  Speaker 14: they're coming out and they're going to this. It started
• 40:03
  Speaker 14: yesterday in preview, so the big day is today through Sunday.
• 40:06
  Speaker 14: So it's a big thing. Tickets are like, you know,
• 40:09
  Speaker 14: about eighty five bucks or so. But the thing is
• 40:11
  Speaker 14: they sell out. So now on the secondary market, they're
• 40:13
  Speaker 14: going away from five hundred to like a thousand secondary market,
• 40:16
  Speaker 14: so it's it's a big problem, but it's also good
• 40:19
  Speaker 14: for for downtown San Diego. They're going to get a
• 40:22
  Speaker 14: big boost economic their people going to restaurants everywhere for
• 40:24
  Speaker 14: the parties in the area.
• 40:25
  Speaker 1: Did you say John Cena was going to be there?
• 40:28
  Speaker 1: I heard, I.
• 40:29
  Speaker 2: Heard thank you, though I hear we saw the list
• 40:32
  Speaker 2: of San Diego. It's a it's a it's a big thing.
• 40:35
  Speaker 2: I mean, San Diego is the biggest one, right, it is.
• 40:37
  Speaker 1: The biggest one.
• 40:37
  Speaker 14: I've been to the New York one. I've covered it
• 40:39
  Speaker 14: a number of times. There may may not have been
• 40:41
  Speaker 14: a Wonder Woman costume involved. It is a good time
• 40:46
  Speaker 14: and it's good to see, not just it's not just kids,
• 40:48
  Speaker 14: it's the adults.
• 40:49
  Speaker 1: Who come out to it.
• 40:50
  Speaker 14: So it's it's a good time.
• 40:51
  Speaker 2: For We just talked about education on the show Bloomberg Money,
• 40:54
  Speaker 2: and I know, Lisa, you've been through the gauntlet of
• 40:57
  Speaker 2: education here in the last twelve months. What was the
• 40:59
  Speaker 2: biggest prize getting a chairub on the path to college?
• 41:03
  Speaker 14: I think the biggest surprise was just how much it
• 41:06
  Speaker 14: was going to cost. I mean, the cost of it
• 41:08
  Speaker 14: was ridiculous, and looking at the number of scholarships, like
• 41:12
  Speaker 14: doing all the research into that and then finding, you know,
• 41:14
  Speaker 14: having to talk with your kid like here's the reality,
• 41:17
  Speaker 14: here's where you want to go here's where we can go.
• 41:20
  Speaker 14: And I think that is the toughest conversation, but it
• 41:22
  Speaker 14: has to be had. Yeah, most definitely.
• 41:24
  Speaker 4: All right, we also have earnings, and I know we've
• 41:26
  Speaker 4: talked a lot about the hyperscaler results, but there's a
• 41:28
  Speaker 4: bunch of companies that are going to tell us how
• 41:30
  Speaker 4: the consumer's.
• 41:31
  Speaker 14: Doing, of course, and that's why we want to look
• 41:32
  Speaker 14: to the consumer ones, because the big list would be
• 41:34
  Speaker 14: too much to get into it. So if you start
• 41:36
  Speaker 14: with Tuesday, we start with Coca Cola and then we
• 41:38
  Speaker 14: go to Visa, So that's for Tuesday. If we go
• 41:40
  Speaker 14: to Wednesday, Procter and Gamble, we have Microsoft and Meta
• 41:43
  Speaker 14: as well. Thursday we have MasterCard, Apple, Amazon, Friday, Colgate, Palmolive,
• 41:47
  Speaker 14: Chevron and Exceon.
• 41:48
  Speaker 1: So two big going Oh, Chevron and Exon.
• 41:50
  Speaker 4: They're raking it in right now. With oil prices the
• 41:52
  Speaker 4: way they've been.
• 41:53
  Speaker 2: They got to be in refinery products as well. To me, actually,
• 41:57
  Speaker 2: inside Baseball, the theme here this week of refining your
• 42:01
  Speaker 2: products up as a story for next week.
• 42:03
  Speaker 4: Well, we well, I mean especially with words.
• 42:05
  Speaker 3: Bloomberg money up and number ers.
• 42:06
  Speaker 4: No, it's actually squarely in the heart of Bloomberg money
• 42:09
  Speaker 4: from the oil prices where they are, Lisa, thank you
• 42:11
  Speaker 4: so much, Lisa Mateo of course on Bloomberg this weekend,
• 42:15
  Speaker 4: every Saturday and Sunday morning, starting at seven am Eastern Time.
• 42:18
  Speaker 1: That does it for Bloomberg Money. This is Bloomberg. We'll
• 42:24
  Speaker 1: get a tr choice. Yeah, I cred thought that you
• 42:27
  Speaker 1: how to have.
• 42:30
  Speaker 2: This is the Bloomberg Money podcast, bringing you a smart
• 42:34
  Speaker 2: look at the forces shaping your financial life.
• 42:37
  Speaker 3: I'm Tom Keen with Scarlet Food.
• 42:40
  Speaker 2: You can watch the show live on Bloomberg TV every
• 42:43
  Speaker 2: Friday at noon Wall Street Time. Subscribe to the podcast
• 42:47
  Speaker 2: on Apple, Spotify or wherever you listen, and as always,
• 42:51
  Speaker 2: on the Bloomberg Terminal and the Bloomberg Business app.