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Bloomberg Money: 'Gold Has Been in Bull Market for 25 Years' · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, Bloomberg Money.
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  Speaker 2: This is the Bloomberg Money Podcast. I'm Tom Keen with
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  Speaker 2: with us this morning. Isabelle Lee is with us. We're
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  Speaker 2: thrilled that she could join. And louis with us as
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  Speaker 2: well here, Thank you so much for joining. Joe Matthew
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  Speaker 2: is with us here as he looks to radio and television.
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  Speaker 2: Following on here with balance of power as well. To
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  Speaker 2: me the arch theme and lessons learned of this week,
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  Speaker 2: But for everyone riveted in the nation by affordability, is
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  Speaker 2: going to be the turnout on the elections plural to come.
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  Speaker 2: Do you have any visibility on the turnout of the
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  Speaker 2: midterms in Wilmbert.
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  Speaker 3: We have conventional wisdom, which is that the energy is
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  Speaker 3: with the Democrats. The question is are they running for
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  Speaker 3: something or are they simply running against Donald Trump? And
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  Speaker 3: that's going to help to animate that turnout as to
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  Speaker 3: what in the world it is that he says at
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  Speaker 3: the last minute here, because leave and look at Texas,
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  Speaker 3: where you saw Democrats turning out ahead of Republicans in
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  Speaker 3: primary elections. We're going to be in Florida on Tuesday.
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  Speaker 3: That's a little bit less significant in this particular conversation.
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  Speaker 3: But where's the price of gas on election day? It's
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  Speaker 3: still four years mc gallen. Right now, we're at four
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  Speaker 3: fourteen here in New York, and I check that todaycause
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  Speaker 3: the going to Garden City. You know Garden City. Sure,
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  Speaker 3: it's only eighteen miles from here, and it bears no
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  Speaker 3: resemblance to this city. He'll be surrounded by first responders
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  Speaker 3: and he's not going to be talking about affordabilities.
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  Speaker 4: He's talking about cris in.
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  Speaker 2: Garden City is resounded by people who dowt a BMW
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  Speaker 2: and Mercedes in the garage.
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  Speaker 4: The Republicans can't win with that audience. Ken, Well, so
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  Speaker 4: why is he going there?
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  Speaker 3: Is a big question today because the affordability argument has
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  Speaker 3: not been landing. He calls it a democratic hoax. You're
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  Speaker 3: looking at the data, Tom, you know better.
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  Speaker 5: Well, we're looking at the data, and the data showed
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  Speaker 5: that retail sales for the month of July fell unexpectedly.
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  Speaker 5: Lillly Meyer, you cover specialty retailers for Bloomberg News, and
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  Speaker 5: you cover a lot of the big aspirational brands. Does
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  Speaker 5: what you see in this retail sales report mesh with
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  Speaker 5: what you've been reporting on when it comes to these
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  Speaker 5: specific companies.
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  Speaker 4: Yeah.
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  Speaker 6: So we reported just a few weeks ago that under
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  Speaker 6: Armor saw softness and trends, and we've been seeing, you know,
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  Speaker 6: kind of a mixed consumer picture over the last few months.
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  Speaker 6: Many of the retailers still are yet to report, so
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  Speaker 6: it'll be really interesting to hear if they say a
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  Speaker 6: similar thing and are seeing softness. But yes, under Armer
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  Speaker 6: said they were seeing softer demand. So I'm curious to
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  Speaker 6: see what other retailers will say and if they act.
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  Speaker 5: It absolutely And I'm wondering as well as we see
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  Speaker 5: this K shaped economy, you know, the divide growing ever wider.
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  Speaker 5: You've also been reporting on how even when it comes
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  Speaker 5: to people's hobbies, those that can afford it are splurging
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  Speaker 5: big time. The running culture, for instance, has gone way upscale.
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  Speaker 6: Yeah, we wrote a story about, you know, high end
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  Speaker 6: running spending. So you know, instead of shopping at places
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  Speaker 6: that are a little bit more affordable, like your Nike's,
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  Speaker 6: your Didas, shoppers are buying three hundred and fifty dollars
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  Speaker 6: running shorts.
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  Speaker 7: Beck.
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  Speaker 4: The world's different.
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  Speaker 2: When you were Base college, it was a road trip
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  Speaker 2: of twenty five miles to go to Freeport, Maine to.
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  Speaker 4: Go to ll being drunk at two am in the morning. Well,
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  Speaker 4: don't tell me you've never done that. Twenty four Okay,
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  Speaker 4: it's like twenty four miles.
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  Speaker 2: You know, over you go shopping power shopping two am
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  Speaker 2: in the morning. That retail day is gone, isn't it.
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  Speaker 2: Everybody wants to go fan now.
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  Speaker 6: Yeah, it's a totally different retail scene. And I think
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  Speaker 6: running is a really good example. You know, people are
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  Speaker 6: spending wild amounts of money to sweat in these items.
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  Speaker 6: And you know, a four hundred and fifty dollars running
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  Speaker 6: vest or one hundred and fifty dollars T shirt that
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  Speaker 6: has holes in it, So people want idea.
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  Speaker 4: I knew it was a fourteen.
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  Speaker 3: That's LSU from Fight Lead Space and a Burton Eye
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  Speaker 3: Record from LLB exactly.
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  Speaker 5: So let me bring you into this conversation because what
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  Speaker 5: you've been writing about is as folks are spending three
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  Speaker 5: hundred and fifty dollars on Nike Mesh shorts or perhaps
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  Speaker 5: higher brands, you have a lot of wealth advisors and
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  Speaker 5: influencers using social media to really talk of how the
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  Speaker 5: wealthy the rich are saving a lot of money on taxes.
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  Speaker 5: And that's something that ordinary people are basically eating up.
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  Speaker 8: Ordinary people maybe because they want to buy one hundred
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  Speaker 8: dollars Lula Limon pants when they go through their yoga classes.
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  Speaker 1: They want more money in their pockets.
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  Speaker 4: A tax alpha.
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  Speaker 8: That's the strategy used for usually reserved for the ultra
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  Speaker 8: high networth and hedge funds. Basically think of tax helf
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  Speaker 8: as maximizing your after tax return.
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  Speaker 1: It's not your pre taxes.
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  Speaker 8: So if someone tells me they're making five hundred thousand
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  Speaker 8: dollars a year, I'm like, but how much of that.
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  Speaker 2: The mind accentag in your is steam coming out of
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  Speaker 2: my ears. We're managing money to make losses.
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  Speaker 1: That's what some people do so.
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  Speaker 8: Now these strategies are being marketed to retail investors in
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  Speaker 8: TikTok and YouTube and on Instagram, and retail investors are
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  Speaker 8: eating this up. Some firms are lowering as much as
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  Speaker 8: one thousand, as little as one thousand dollars. But you
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  Speaker 8: have some people saying that it's not worth it.
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  Speaker 1: That's million dollars for.
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  Speaker 4: The Bloomberg money cork in my mouth.
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  Speaker 8: I know, because you do manufacture losses so that you
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  Speaker 8: will have more take home.
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  Speaker 5: Hey, but you know, this whole strategy ties people ever
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  Speaker 5: closer to their wealth advisors because these are not easy strategies.
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  Speaker 1: These are complicated sts.
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  Speaker 8: They're very complex strategies. Some include shorting stocks, some include
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  Speaker 8: borrowing money because you have to again manufacture the losses.
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  Speaker 8: And this is a story done by my great colleagues
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  Speaker 8: Charlie Wells, and.
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  Speaker 1: They need to Tachovia.
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  Speaker 8: And we talk to some people and some of them
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  Speaker 8: are really into it, but some are like, no, it's
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  Speaker 8: not the worth it if you don't have a million
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  Speaker 8: dollars at.
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  Speaker 1: The very least, you know.
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  Speaker 5: I come back to the idea that really is about inflation.
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  Speaker 5: For you know, whether you're at the top of the
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  Speaker 5: income spectrum or the bottom of the income spectrum. And Joe,
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  Speaker 5: we had data this week that showed inflation slowed, but
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  Speaker 5: it's still above three percent. We know cost of living
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  Speaker 5: is top of mind for voters. I'm not sure where
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  Speaker 5: it ranks for the President, who's obviously trying to end
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  Speaker 5: the war in Iran and wants a perpetrator for what's
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  Speaker 5: going on with the reflecting pool. Is it a priority
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  Speaker 5: for the rest of the Republican Party's priority.
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  Speaker 4: Yeah.
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  Speaker 3: We're going to talk to Mike Flood later on Main
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  Speaker 3: Street Caucus, Nebraska.
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  Speaker 4: It's the only thing he's worried about.
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  Speaker 3: He's hoping I'll ask him about the housing bill that
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  Speaker 3: they got past the President refused to sign. There's a
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  Speaker 3: massive disconnect here, as the President suggests that affordability is
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  Speaker 3: a democratic hoax and has previously said that they won
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  Speaker 3: on affordability. The part I don't get is after that
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  Speaker 3: tape this week, we didn't hear anything from the President.
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  Speaker 3: There was no victory lap. There wasn't even a statement
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  Speaker 3: from a boring statement from the Communications Office. So you
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  Speaker 3: almost get the sense the White House has stopped caring
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  Speaker 3: about it.
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  Speaker 2: I got to ask because it's such news front and center,
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  Speaker 2: and that is the war in the Eastern Mediterranean. Joe,
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  Speaker 2: you and Kayley are just hardwired into this. Should we
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  Speaker 2: expect news this weekend?
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  Speaker 3: No, I look, I am getting a little bored of
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  Speaker 3: the let's wake up Monday and see if we're back
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  Speaker 3: at war routine. There's a reluctance to go along into
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  Speaker 3: the weekend because you're asking me about this som But
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  Speaker 3: the President says we're easing back, We're low keying it,
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  Speaker 3: and this looks like it's going to be a long
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  Speaker 3: term economic strangle as opposed to a kinetic military.
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  Speaker 4: Can we rip up the script? We get lucky here?
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  Speaker 1: Yeah?
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  Speaker 4: Okay? Joe Matthew of course.
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  Speaker 2: Foundation with David Brudnoy in Boston, the Fenway Sports Group
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  Speaker 2: of Boston announces they're unloading Liverpool in some form.
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  Speaker 4: Will that money go directly to save the middle relief
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  Speaker 4: of the Boston.
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  Speaker 3: Red Well, I'm sure that you would like to see that.
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  Speaker 4: I would like to see that.
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  Speaker 3: I'm not sure David Brudnoy would have done that with
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  Speaker 3: the money, though. Can't you do something better in Massachusetts
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  Speaker 3: at the bottom of the k.
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  Speaker 4: We'll have to see it.
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  Speaker 2: It's a sale Bezos picks up of British soccer.
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  Speaker 1: Yeap Bezus has another brands.
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  Speaker 4: John Pharaoh to make me smarter. I have no idea
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  Speaker 4: what I'm talking about here? Now, where's the dog coss
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  Speaker 4: a Fenway Park? Right now? I don't know. Six dollars
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  Speaker 4: and fifty cents? What's a hot dog costs at Costco?
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  Speaker 1: Lily, it's a good question.
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  Speaker 4: It's like a dollar.
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  Speaker 1: This is I wonder.
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  Speaker 2: Thank you Joe Matthew of course, Lily Myer as well,
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  Speaker 2: and Isabelle also writing up an important article on TikTok.
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  Speaker 4: Coming up an important conversation. Mike Wilson. You know him
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  Speaker 4: for his acuity at Morgan Stanley buch More.
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  Speaker 2: Mike Wilson here on the Path to the proper retirement.
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  Speaker 1: Social's TikTok. It's also Instagram. It was also YouTube.
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  Speaker 4: Did you ever go from Bates to Freeport? Mean you did?
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  Speaker 2: Bloomberg money from New York City Sconland fou in tone,
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  Speaker 2: he thinks so much for being with us today.
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  Speaker 4: I mean, this is what it's about, folks.
• 9:05
  Speaker 2: We get somebody in really really quite good scarlet and
• 9:08
  Speaker 2: they write a seven page, really really detailed paper. But
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  Speaker 2: what's it mean about my non retirement.
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  Speaker 5: What does it mean for the stocks that do you
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  Speaker 5: have in your portfolio? For we get the fixed income or.
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  Speaker 2: The bitcoin in my portfolio, there's none in mycoin. I'm
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  Speaker 2: in triple lovers doll cash. That's a different story. We
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  Speaker 2: are honored to bring you Mike Wilson, Pride of University
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  Speaker 2: of Michigan, Chief US Equity Strategists, an investment officer of
• 9:32
  Speaker 2: a small shop, Morgan Stanley this morning, how you doing?
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  Speaker 4: How's your year? Ben? Doing great? Ben?
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  Speaker 9: It's a bull market, you know, summer has been pretty
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  Speaker 9: good to me. And do you feel like you do
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  Speaker 9: you feel like the market? You've got the market right
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  Speaker 9: if you underestimated its durability. Now, I think we probably
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  Speaker 9: were the first one to talk about this earnings recovery,
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  Speaker 9: and even we underestimate the strength of it. So yes,
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  Speaker 9: we did underestimate the power of it, but directly.
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  Speaker 4: I think we were right on that.
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  Speaker 9: I think where we've been surprised is probably the durability
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  Speaker 9: of the AI campax and just how much that has
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  Speaker 9: accelerated and how much, quite frankly, how much the market
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  Speaker 9: has been willing to absorb on the issuance.
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  Speaker 4: The reason credit next.
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  Speaker 2: Well, the reason you've been good at that is, Jim Carron,
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  Speaker 2: it's got nothing to do with the equity side of
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  Speaker 2: the shot. Bring up the chart right now. This is
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  Speaker 2: the emotion many of you have forgotten this stocks. You
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  Speaker 2: can go down in stocks, it's a shot. Now this
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  Speaker 2: chart ends in twenty twenty two. But there's XPIS. It's wonderful, great, wonderful,
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  Speaker 2: COVID and all that. And then there's a big rollover
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  Speaker 2: in twenty twenty one twenty two. Where are you brave
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  Speaker 2: enough to catch the falling knife when the market rolls
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  Speaker 2: over like that and my personal finance is troubled, How
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  Speaker 2: do I get back into the market?
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  Speaker 4: How with the margin do you buy when you see
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  Speaker 4: the sweat of that chart.
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  Speaker 9: Well, the really challenging thing of twenty twenty two, as
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  Speaker 9: you know for retirees, was that stocks and bonds went
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  Speaker 9: down for the first time in really our lifetime, and
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  Speaker 9: that so there was no head So even though the
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  Speaker 9: decline inequities wasn't as severe as it was an eight
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  Speaker 9: or in one or two, your sixty forty portfolio was
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  Speaker 9: down the same. So that was a change, and that
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  Speaker 9: I think that was one of the things that made
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  Speaker 9: investors apprehensive to step in. It was like, holy smokes,
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  Speaker 9: I'm getting hit on both my defensive stuff and my
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  Speaker 9: offensive part of my portfolio.
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  Speaker 4: So I think people froze up. Now.
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  Speaker 9: Our job is to remind people that there's value at
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  Speaker 9: some point, and I would say we navigated the twenty
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  Speaker 9: twenty one top extremely well. In the twenty two downturn,
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  Speaker 9: we probably overstayed our welcome a bit in twenty three
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  Speaker 9: and got back on board in twenty four under the
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  Speaker 9: story that we're telling now. But like I mean, as
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  Speaker 9: a as a person who has their money in the
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  Speaker 9: market for retirement or long term investor, you really should
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  Speaker 9: avoid being shaken out on both the top and the bottom.
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  Speaker 9: So in the words, chasing stocks is as damaging as
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  Speaker 9: selling stocks at the bottom in my view. So that's
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  Speaker 9: why we like dollar cost averaging. So we do like
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  Speaker 9: still like diversified portfolios. Twenty two is the challenge on
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  Speaker 9: that it ended up working out for folks who stay
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  Speaker 9: fully invested.
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  Speaker 5: And for those who stay fully invested, their faith in
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  Speaker 5: equities has been restored, maybe for bonds not as much,
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  Speaker 5: given that the performance has not been as great. Is
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  Speaker 5: there a way to get all your defense of your
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  Speaker 5: bond like exposure within equities. I've heard some people talk
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  Speaker 5: about the idea of swearing off fixed income completely and
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  Speaker 5: perhaps owning insurance companies as proxies for bonds. You get
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  Speaker 5: the price appreciation, you get the dividend. It's kind of
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  Speaker 5: like a win win.
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  Speaker 4: Yeah.
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  Speaker 9: Well, what I would say is that these asset classes
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  Speaker 9: are now more closely correlated, so they're just not going
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  Speaker 9: to offer that natural diversification benefit that they have historically.
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  Speaker 4: So that means you need to do other things.
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  Speaker 9: So there are other types of investments you were mentioning earlier,
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  Speaker 9: gold or maybe even bitcoin or some of these things
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  Speaker 9: that can defend against inflation. So we've been a very
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  Speaker 9: big advocate of gold, not so much as a yielding instrument,
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  Speaker 9: but as a defensive asset. That doesn't mean you abandon
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  Speaker 9: fixed income, but it does mean you reduce your duration.
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  Speaker 9: So there are things you can do within your fixed
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  Speaker 9: income portfolio to make it more valuable. It still provides
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  Speaker 9: some diversification benefit without taking too much risk on the
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  Speaker 9: duration side.
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  Speaker 5: So when you talking about gold, gold was acting like
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  Speaker 5: a meme stock at the beginning of this year. I mean,
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  Speaker 5: was that just kind of a unique one off period
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  Speaker 5: or can we return to things like that?
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  Speaker 9: Well, I would say that gold has been in a
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  Speaker 9: bowl market for twenty five years.
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  Speaker 4: I mean people kind of woke up to this.
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  Speaker 9: Idea more recently at the beginning of the year, and
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  Speaker 9: this probably is a good place to kind of, you know,
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  Speaker 9: kind of gravitate to you for the rest of the discussion.
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  Speaker 9: For this year, I would say, we've had basically one
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  Speaker 9: big commodity rotation, so coming into this year. If you remember,
• 13:24
  Speaker 9: at the end of last year, the FED started printing
• 13:26
  Speaker 9: money again right with this reserve management program, and that
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  Speaker 9: led directly to gold and.
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  Speaker 4: Silver stacks taking off.
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  Speaker 9: Then we went into rare earths and metal stocks, then
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  Speaker 9: energy stocks, and then semiconductors.
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  Speaker 4: Now where do all those have in common?
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  Speaker 9: They're all commodities, Okay, So it's kind of interesting to
• 13:42
  Speaker 9: me that that's what's been going on, and that may
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  Speaker 9: be exactly.
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  Speaker 4: What people are doing.
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  Speaker 9: They're looking for things that are not stocks, but a commodity,
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  Speaker 9: like to offset the risk to have in their portfolio
• 13:52
  Speaker 9: with equity like risk.
• 13:53
  Speaker 2: Michigan, there's Stephen Ross and there is this idea of
• 13:58
  Speaker 2: arbitrage pricing theory.
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  Speaker 4: I want you to bring it over to somebody's.
• 14:01
  Speaker 2: Retirement where we talk about factor based investing, discuss momentum
• 14:07
  Speaker 2: and the other factors there that lead to successful personal finance.
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  Speaker 9: You know, well, first of all, we have to understand
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  Speaker 9: that people, you know, the retail vestor gets a bad rap,
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  Speaker 9: and the retail investor, I think is navigated the last
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  Speaker 9: fifteen years extremely well. Is a good lead into your question,
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  Speaker 9: which is in the GFC. When the FED started printing
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  Speaker 9: money the first time, all the smart people were like, oh,
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  Speaker 9: this is a disaster. It's going to be inflationary. And
• 14:30
  Speaker 9: what did the retail person do. They bought bonds because like,
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  Speaker 9: we don't see inflation and by the way, this is
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  Speaker 9: just filling in holes. It's a different type of que
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  Speaker 9: Then when COVID happened, they sold their bonds and they
• 14:40
  Speaker 9: bought stocks because they realized this, actually, this kind of
• 14:42
  Speaker 9: qiui where you actually print money and send checks out
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  Speaker 9: to people is extremely inflationary. So I would say the
• 14:48
  Speaker 9: average retail person has essentially the vers has done a
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  Speaker 9: really good job of diversifying their portfolio away from things
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  Speaker 9: that are anti fragile to inflation. And so that's why
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  Speaker 9: we've been doing this same thing and our recommendations, whether
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  Speaker 9: it's goal, whether it's alternative investments, things that can provide
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  Speaker 9: balance to the portfolio without having pure equity like risk.
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  Speaker 5: We talked a little bit about how when you look
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  Speaker 5: for some defensive qualities, perhaps you go into gold, for instance,
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  Speaker 5: or look at other alternatives. Is that how you diversify
• 15:17
  Speaker 5: your portfolio?
• 15:18
  Speaker 1: Are you going into gold?
• 15:20
  Speaker 5: What do you do to make sure that you don't
• 15:22
  Speaker 5: You're not overly loaded up on equities?
• 15:24
  Speaker 4: Yeah, well, I'm.
• 15:25
  Speaker 9: Probably not a great example. I'm much more tactical than
• 15:28
  Speaker 9: I would recommend most individual investors be like I'll trade
• 15:31
  Speaker 9: in it out, I'll even short things as my defensive heads.
• 15:34
  Speaker 9: But that's not practical for most people. Okay, So I
• 15:37
  Speaker 9: would recommend that we recommend for most retail investors or
• 15:40
  Speaker 9: evenstitutional investors in downmans is you have to have a plan, Okay.
• 15:43
  Speaker 9: And then what people don't do a good job of
• 15:46
  Speaker 9: is rebalancing. So when I not worry about so much,
• 15:49
  Speaker 9: but I think what I see out there right now
• 15:50
  Speaker 9: is a lot of unbalanced portfolios, not just in equities,
• 15:54
  Speaker 9: but in certain equities.
• 15:55
  Speaker 4: Okay, and as you tilted towards something, yeah, there's just
• 15:58
  Speaker 4: you've got.
• 15:58
  Speaker 9: Too much exposure to single assets because nobody wants to
• 16:01
  Speaker 9: pay taxes.
• 16:02
  Speaker 4: And I hear this all the time.
• 16:03
  Speaker 2: What do you say to the people that I'm afraid
• 16:06
  Speaker 2: of Mike Wilson's world. I'm loaded to the boat in cash.
• 16:09
  Speaker 2: Should they be looking at two and three year Jim
• 16:11
  Speaker 2: Karen like money?
• 16:12
  Speaker 9: Well, look, I mean everybody should have some cash, and
• 16:15
  Speaker 9: you're getting paid for your cash now. The biggest change
• 16:17
  Speaker 9: the sense really COVID quite frankly, is that you're getting
• 16:20
  Speaker 9: a positive real return now in your fixed income. So
• 16:23
  Speaker 9: I'm not as barish on fixed income nearly as we
• 16:25
  Speaker 9: were ten years ago. I mean, particularly for things that
• 16:28
  Speaker 9: are three four years in, you're getting a real return
• 16:30
  Speaker 9: that's quite respectable now. Everybody has their own I like,
• 16:33
  Speaker 9: everybody has their own risk tolerance. Okay, some people like
• 16:36
  Speaker 9: to hold thirty percent cash, some people like to hold
• 16:38
  Speaker 9: five percent cash, whatever.
• 16:39
  Speaker 4: That number is.
• 16:40
  Speaker 9: But you're getting paid for it now. So cash is
• 16:42
  Speaker 9: a good asset. Mid tier sort of duration bonds is
• 16:45
  Speaker 9: a good asset. Infrastructure type bonds is a good defensive asset.
• 16:49
  Speaker 4: Certain equities are.
• 16:50
  Speaker 9: A good defensive asset, whether it be utilities or maybe
• 16:52
  Speaker 9: staples and things like that. So there are many things
• 16:54
  Speaker 9: you can do from a stylistic standpoint that you can
• 16:57
  Speaker 9: protect yourself.
• 16:58
  Speaker 4: Once again, when I think.
• 16:59
  Speaker 9: People have loaded up on now is you know, large
• 17:02
  Speaker 9: camp grossdocks, and those have been great, and that's why
• 17:04
  Speaker 9: they want to continue to own those.
• 17:05
  Speaker 4: But just understand it.
• 17:07
  Speaker 9: You're unbalanced, Okay, so you better make sure you're going
• 17:10
  Speaker 9: to be right for the next three, four or five years.
• 17:11
  Speaker 5: This week, one of our stories that we feature is
• 17:14
  Speaker 5: the American dream of owning a home. It is alive,
• 17:16
  Speaker 5: at least in Grand Rapids, Michigan. Almost half of all
• 17:20
  Speaker 5: new homeowners in Kent County are younger than thirty five,
• 17:24
  Speaker 5: because the area is a high concentration of affordable homes
• 17:26
  Speaker 5: and plentiful job opportunities. Paulina Caucro has been following the
• 17:30
  Speaker 5: story and she joins us now, so why is Grand
• 17:32
  Speaker 5: Rapids kind of bucking this trend, the national trend of
• 17:35
  Speaker 5: first time homeownership being out of reach for so many
• 17:37
  Speaker 5: young people.
• 17:38
  Speaker 1: Yeah.
• 17:39
  Speaker 10: I think what's really unique about Kent County, Michigan, is
• 17:42
  Speaker 10: that there's a relatively favorable ratio between home prices and income.
• 17:47
  Speaker 10: So nearly half of its homeowners in twenty twenty five,
• 17:50
  Speaker 10: where thirty five years or younger. And that's pretty amazing
• 17:54
  Speaker 10: if you consider that the average first time home buyer
• 17:56
  Speaker 10: today is forty years old across the US, and that's
• 17:59
  Speaker 10: the old and data going back to nineteen eighty one.
• 18:02
  Speaker 10: So it helps that Grand Rapids, you know, has a
• 18:05
  Speaker 10: really diversified economy.
• 18:06
  Speaker 1: Its population has.
• 18:07
  Speaker 10: Been growing, and there's a lot of opportunities for young
• 18:11
  Speaker 10: workers who are earning enough to buy a home. You know,
• 18:15
  Speaker 10: while across the US, I would say, you know, workers
• 18:20
  Speaker 10: under thirty five, that price of a home is three
• 18:22
  Speaker 10: point six times their income, but it's much in Grand Rapids,
• 18:26
  Speaker 10: it's too much lower than that.
• 18:27
  Speaker 5: Okay, it's much lower than that, but you wonder how
• 18:29
  Speaker 5: it's going to stay that way because affordability is already eroding.
• 18:32
  Speaker 5: You look at the prices at Grand Rapids and it's
• 18:35
  Speaker 5: up a third and five years. So could you make
• 18:37
  Speaker 5: the argument that Grand Rapids is just a few years
• 18:39
  Speaker 5: behind everyone else every other city.
• 18:42
  Speaker 10: Yeah, there's definitely a lot of pressure on the market.
• 18:44
  Speaker 10: We've seen prices go up about thirty four percent in
• 18:48
  Speaker 10: five years, as you mentioned, and inventory is still roughly
• 18:51
  Speaker 10: thirty percent below pre pandemic levels, and this is an
• 18:54
  Speaker 10: issue we're dealing with across the US housing supply shortage.
• 18:57
  Speaker 10: And actually what we're seeing in Grand Rapids is they're
• 19:01
  Speaker 10: building homes at a slower pace, at five point three
• 19:03
  Speaker 10: percent compared to seven percent.
• 19:05
  Speaker 2: Now, what are people doing in Grand Rampids? I mean,
• 19:07
  Speaker 2: what the you know, I think of nineteen sixty three
• 19:10
  Speaker 2: fruit loops, fooit loops were pretty much like.
• 19:15
  Speaker 4: And all that.
• 19:15
  Speaker 2: Yeah, in Grand Rapids and Battle Creek and all that.
• 19:19
  Speaker 2: What are they doing in Grand Rapids in this boom?
• 19:23
  Speaker 1: We've seen that the wages have you know, kept up.
• 19:26
  Speaker 10: It's like thirteen percent higher than the rest of the state.
• 19:28
  Speaker 10: So I think that, you know, being able to keep
• 19:31
  Speaker 10: home prices relatively low while incomes are growing and there's
• 19:35
  Speaker 10: a relatively young population has helped people be able to
• 19:38
  Speaker 10: afford buying homes. It's not just about having cheap homes,
• 19:41
  Speaker 10: it's having the economic opportunities to afford them as well.
• 19:44
  Speaker 5: All right, Paulina Cochero, thank you so much. She's a
• 19:47
  Speaker 5: member of our Bloomberg Money team covering stories that affect
• 19:50
  Speaker 5: your money.
• 19:51
  Speaker 2: I think it is great right now, this is important.
• 19:54
  Speaker 2: Kristin Bitterly holds court full time at the City Group
• 19:57
  Speaker 2: shop in wealth management how to global wealth at work,
• 20:01
  Speaker 2: it really really focused on retirement. I look at ARISUS
• 20:05
  Speaker 2: seventy four as a failure. There's a huge percentage of
• 20:08
  Speaker 2: America that's not getting retirement done. What's the biggest thing
• 20:12
  Speaker 2: they could do to solve that other than just save
• 20:15
  Speaker 2: more money?
• 20:16
  Speaker 11: Well, I would say there's two things. One, we have
• 20:18
  Speaker 11: to realize that we're living longer. So when you look
• 20:21
  Speaker 11: at average life expectancy, it is increasing. The population above
• 20:25
  Speaker 11: eighty is expected to triple by twenty thirty, and the
• 20:28
  Speaker 11: population above sixty five is expected to double. So people
• 20:31
  Speaker 11: are living longer, which means your money has to work
• 20:33
  Speaker 11: for you longer. So the second kind of I would
• 20:36
  Speaker 11: say error that a lot of people make is not
• 20:38
  Speaker 11: investing early on so saving.
• 20:40
  Speaker 1: We do see.
• 20:41
  Speaker 11: Savings rates that they've increased if you're not investing that money.
• 20:45
  Speaker 11: And I heard Mike Wilson earlier today talk about the
• 20:47
  Speaker 11: fact that yes, there is an attractive yield on cash
• 20:49
  Speaker 11: and short dration fixed income. But when you're thinking about
• 20:52
  Speaker 11: what is my life expectancy, how long does that money
• 20:55
  Speaker 11: have to work for me If I don't invest I'm
• 20:57
  Speaker 11: going to be behind.
• 21:00
  Speaker 5: Just investing, it's also taking advantage of tax efficient vehicles
• 21:03
  Speaker 5: and fee efficient vehicles. Like people think investing means just
• 21:05
  Speaker 5: putting it into an account or putting into your four
• 21:07
  Speaker 5: to one k and kind of forgetting.
• 21:09
  Speaker 11: Absolutely absolutely so, I would say the first thing about
• 21:12
  Speaker 11: being too overweight cash, we need to make sure that
• 21:14
  Speaker 11: we're putting that to work. And one in that right
• 21:16
  Speaker 11: amount in cash is ten percent, fifteen percent, We've seen
• 21:18
  Speaker 11: those slightly elevated.
• 21:19
  Speaker 1: It shouldn't be thirty percent. But you're absolutely right.
• 21:22
  Speaker 11: Taking advantage of any type of tax advantaged account or
• 21:24
  Speaker 11: tax deferred account. Making sure that your well structured in
• 21:28
  Speaker 11: the right way is also critically important. And then also
• 21:32
  Speaker 11: there's there's more tax efficient investments. So if you're invested
• 21:35
  Speaker 11: in fixed income and you're a US investor, look to
• 21:37
  Speaker 11: the muni market, look to some of these areas where
• 21:40
  Speaker 11: your after tax and after fee returns are going to
• 21:43
  Speaker 11: be more profitable for you.
• 21:44
  Speaker 5: There's some people who take this to the extreme right.
• 21:47
  Speaker 5: There's the fire movement of financial dependence retire early people.
• 21:51
  Speaker 1: Who see it.
• 21:52
  Speaker 4: I'm out of that movement. Work.
• 21:55
  Speaker 1: I think you're a.
• 21:55
  Speaker 5: Little bit you and I are pass our prime. When
• 21:57
  Speaker 5: it comes to the.
• 21:57
  Speaker 4: Cask it's right, surveillance caskets right over.
• 22:00
  Speaker 1: Yes, yes, that's right.
• 22:01
  Speaker 5: I mean the idea is to be able to retire
• 22:03
  Speaker 5: in your thirties, forties and fifties and live your best life.
• 22:07
  Speaker 5: But I'm sure there's traps that people fall into when
• 22:09
  Speaker 5: they pursue fire at all costs.
• 22:11
  Speaker 2: Yeah.
• 22:11
  Speaker 11: I would also say though, the investors that we work
• 22:14
  Speaker 11: with and the clients we work with, they are in
• 22:16
  Speaker 11: specialized industry.
• 22:17
  Speaker 1: So we work with lawyers, we work.
• 22:19
  Speaker 11: With professional services, asset managers, pre ipopost Ipo companies. A
• 22:24
  Speaker 11: lot of our clients they like to work like this
• 22:26
  Speaker 11: is part of like they enjoy their profession, their ambitious
• 22:30
  Speaker 11: and so what we see is actually something different. They
• 22:32
  Speaker 11: want to work longer and even in retirement. There's a
• 22:36
  Speaker 11: great organization that's called Luster where it's founded by very
• 22:39
  Speaker 11: successful women. And what they do is they say like
• 22:42
  Speaker 11: this is actually like I'm going to live my best
• 22:44
  Speaker 11: life in retirement. I'm not fading into the background. I'm
• 22:46
  Speaker 11: not giving up on my intellect and professional ambitions. I
• 22:50
  Speaker 11: may do something different my time, but I'm still very
• 22:53
  Speaker 11: active and very business.
• 22:53
  Speaker 4: Well, when I see day after day.
• 22:54
  Speaker 2: This is a beautiful quote from Citigroup and Kristens bring
• 22:58
  Speaker 2: it up, and it's about the inertial force.
• 23:00
  Speaker 4: It's out there in our bad behavior.
• 23:02
  Speaker 2: I'm as guilty as this as anyone leaving excess capital.
• 23:05
  Speaker 2: Idling cash, hoarding cash far beyond the threshold seriously penalizes
• 23:11
  Speaker 2: long term growth inflation. It silently erodes a purchasing power
• 23:17
  Speaker 2: of uninvested capital.
• 23:19
  Speaker 4: Why do we do the start with it? I mean,
• 23:21
  Speaker 4: you're expert at this.
• 23:22
  Speaker 2: Why do what's the why why we sit with cash
• 23:26
  Speaker 2: up to hireables?
• 23:27
  Speaker 11: First thing is we don't teach people to invest. So
• 23:30
  Speaker 11: when you think of our education in the US, yeah,
• 23:33
  Speaker 11: you may be a business major and maybe you have
• 23:35
  Speaker 11: some type of coursework in college, but many people grow
• 23:39
  Speaker 11: they could go to the best universities in the world
• 23:41
  Speaker 11: and not actually understand financial planning, a state planning, and
• 23:44
  Speaker 11: how to invest. So part of it is like we
• 23:46
  Speaker 11: are not educated to do that. Loss of version is
• 23:49
  Speaker 11: also a very very powerful heuristic bias where people tend
• 23:53
  Speaker 11: to think that it's safe. Cash feels safe. And the
• 23:57
  Speaker 11: last thing that I would say is people are busy.
• 24:00
  Speaker 11: The inertial part is actually very real. So Mike talked
• 24:03
  Speaker 11: about this that you're kind of you could have the
• 24:06
  Speaker 11: inappropriate allocation because you don't understand the outside kind of
• 24:09
  Speaker 11: positions in your portfolio. You have to have a more
• 24:12
  Speaker 11: proactive to the challenge.
• 24:13
  Speaker 2: Show with Mike, which we could also show with Kristen.
• 24:16
  Speaker 2: Is there issue here, Scarlet, we're addicted to a bull
• 24:18
  Speaker 2: market or we don't have to think?
• 24:20
  Speaker 1: Right to me, that's a lot of it, right.
• 24:22
  Speaker 4: I hope there's the sweat with the Vicks of fourteen.
• 24:24
  Speaker 4: The sweat's not out there, so.
• 24:26
  Speaker 5: I guess the question is how do you go de
• 24:28
  Speaker 5: risking your portfolio? Mike talked about, you know, having too
• 24:31
  Speaker 5: much concentration in the growthy parts of the market and
• 24:34
  Speaker 5: it's okay to actually take some profit and you know
• 24:36
  Speaker 5: put it aside and sometimes right the uncle Sam, even
• 24:40
  Speaker 5: though everyone's scared to death of doing it, how do
• 24:42
  Speaker 5: you go about de risking your portfolio day in and
• 24:45
  Speaker 5: day out because it's something people don't want to do.
• 24:47
  Speaker 5: They're comfortable with seeing that number grow.
• 24:49
  Speaker 11: Yeah, So this inertial concept that's actually on two different fronts.
• 24:52
  Speaker 11: It's one on being too overweight cash. So that's then
• 24:55
  Speaker 11: an element of how do I actually put capital to work,
• 24:58
  Speaker 11: and I think that's easier. Actually, if you're two overweight cash,
• 25:01
  Speaker 11: the idea that you can leg in you can use
• 25:02
  Speaker 11: dollar cost averaging. I think that's probably an easier psychological
• 25:06
  Speaker 11: component on the front of okay, I need to rebalance,
• 25:10
  Speaker 11: and potentially that.
• 25:10
  Speaker 1: Does have tax impacts.
• 25:12
  Speaker 11: One of the things that I would say is if
• 25:13
  Speaker 11: tax is a major deterrent, that should not be the
• 25:16
  Speaker 11: major turrant. However, there are hedging strategies. There are a
• 25:20
  Speaker 11: number of different strategies that you can employ where you
• 25:22
  Speaker 11: creick off some of the downside risk without triggering a
• 25:25
  Speaker 11: taxable event. So I would encourage people who have really
• 25:27
  Speaker 11: large embedded gains to speak to their advisor about that.
• 25:30
  Speaker 2: And now we go over few tread Kristin bitterly. One
• 25:33
  Speaker 2: of the gimmicks is option writing. I bring in an
• 25:37
  Speaker 2: income to get an enhanced income and I give up
• 25:40
  Speaker 2: some of the future capital gain.
• 25:42
  Speaker 4: Is it a sound strategy option overwriting?
• 25:45
  Speaker 1: Absolutely?
• 25:46
  Speaker 11: Look, I grew up in derivatives, so I probably have
• 25:48
  Speaker 11: a bias in the options market. I think options are
• 25:52
  Speaker 11: a double edged sort when you use them for a leverage,
• 25:54
  Speaker 11: when you don't understand what your max downside max upside
• 25:57
  Speaker 11: is and the risk return profile. Clearly, some people can
• 26:00
  Speaker 11: get on the wrong side of that trade. If you
• 26:02
  Speaker 11: are long in equity position and you think it's going
• 26:04
  Speaker 11: to be relatively sideways, you don't want to sell out
• 26:06
  Speaker 11: of it because you like the company, and you're finding
• 26:09
  Speaker 11: ways of a more tax efficient augmented yield by selling
• 26:12
  Speaker 11: listed options or covered calls against it. That can be
• 26:15
  Speaker 11: a way to enhance your income stay in the stock
• 26:18
  Speaker 11: not trigger.
• 26:18
  Speaker 1: A taxable gain.
• 26:19
  Speaker 5: You mentioned how people are not educated on investing. Are
• 26:22
  Speaker 5: we also not educated on debt in the role that
• 26:24
  Speaker 5: debt plays because you've pointed out that the way people
• 26:26
  Speaker 5: look at debt is they're either scared to death of
• 26:28
  Speaker 5: it or they have too much in it. They're carrying
• 26:32
  Speaker 5: high interest personal loans, and there's never any in between.
• 26:36
  Speaker 11: It's so interesting because I think this is a very
• 26:37
  Speaker 11: cultural component as to how you were raised that what
• 26:40
  Speaker 11: you see is there are many people who were taught
• 26:42
  Speaker 11: growing up like debt is bad, that any type of
• 26:45
  Speaker 11: debt is bad. Clearly, there are some types of debt
• 26:48
  Speaker 11: that are really high interest bearing debt that are your
• 26:50
  Speaker 11: credit card, for example. The idea that you're very disciplined
• 26:53
  Speaker 11: about that because it's a very high interest rate. However,
• 26:56
  Speaker 11: we were just talking about mortgages earlier. If you're someone
• 26:59
  Speaker 11: who locked in a thirty year fixed mortgage at maybe
• 27:01
  Speaker 11: a three percent two percent level, that is probably one
• 27:05
  Speaker 11: of the that's kind of the trade of the century
• 27:07
  Speaker 11: if you think about it in terms of very cheap financing.
• 27:10
  Speaker 11: That is also there's a tax emicion element to it
• 27:13
  Speaker 11: that is intelligent leverage, intelligent net that helps you actually
• 27:17
  Speaker 11: achieve your goals.
• 27:18
  Speaker 2: Thank you so much for coming in today. Thanks for
• 27:19
  Speaker 2: having me again soon like before the year end. Krista Biddley,
• 27:23
  Speaker 2: thank you so much. With City Wealth, had a global
• 27:25
  Speaker 2: wealth at work. I noticed a thirty year mortgage six
• 27:28
  Speaker 2: point seven seven percent.
• 27:30
  Speaker 1: You keep high to seven percent.
• 27:32
  Speaker 2: Well, I'm wondering how the world stops at seven percent,
• 27:34
  Speaker 2: but there it is. I mean, it's a it's a
• 27:36
  Speaker 2: big statistic.
• 27:37
  Speaker 4: What fun last night Field of Dreams Netflix at the
• 27:41
  Speaker 4: ball out of the park over.
• 27:43
  Speaker 2: The cornfield last night, we thought we'd do a baseball
• 27:47
  Speaker 2: moment for you coming up.
• 27:48
  Speaker 4: Scarlett has a chiller book. It's Bloomberg Money Good after do.
• 27:54
  Speaker 1: I like how you stress the work clip that's going
• 27:56
  Speaker 1: to come up.
• 27:58
  Speaker 4: That's magic.
• 27:59
  Speaker 5: I remember the movie Field of Dreams about Field of
• 28:11
  Speaker 5: Dreams Truelisto Jackson.
• 28:13
  Speaker 2: Spectacular was one of the rarest things where the movie
• 28:15
  Speaker 2: was better than the book.
• 28:16
  Speaker 5: Kevin Costner starring Kevin Costner, nineteen eighty nine. Last night
• 28:20
  Speaker 5: there was a Field of Dreams game that it took
• 28:22
  Speaker 5: place in Iowa.
• 28:23
  Speaker 4: Rying full disclosure tears the whole thing.
• 28:25
  Speaker 5: Twins versus Phillies on Netflix. This was It had been
• 28:29
  Speaker 5: a couple of years since the last one, but both
• 28:32
  Speaker 5: teams were throwback uniforms, which I love.
• 28:34
  Speaker 2: Yeah, and the corn was not being hied. By the
• 28:35
  Speaker 2: fourth of July. It was spectacular. The Phillies and Twins delivered.
• 28:39
  Speaker 2: Major League Baseball delivered and all that. We thought we'd
• 28:42
  Speaker 2: just take a look at this across the iconic movie
• 28:44
  Speaker 2: The Hall of Famers coming out, Mike Schmidt there from.
• 28:48
  Speaker 1: The Phillies until the very end.
• 28:49
  Speaker 2: No, I did not watch the whole thing because I
• 28:51
  Speaker 2: have to get up and do a date, you know,
• 28:52
  Speaker 2: the early morning gig.
• 28:53
  Speaker 1: But I notice that one Roger Clemmoran is there.
• 28:56
  Speaker 2: Roger clements at the end was playing catch with his son,
• 28:58
  Speaker 2: who's on the Twins. You know. The whole thing was
• 29:01
  Speaker 2: just a huge, huge success. To say, at the least
• 29:04
  Speaker 2: we wanted over to books. Here's the book for those
• 29:06
  Speaker 2: younger who are like Field of Dreams. I don't get it.
• 29:08
  Speaker 2: It's fossil TV. Shoeless Joe Consola did it and I'm sorry.
• 29:13
  Speaker 2: This was the first of the books. WP cansella shoeless Joe.
• 29:17
  Speaker 2: It's different than the movie. The movie is better than
• 29:19
  Speaker 2: the book, but the book is a rite of passage
• 29:22
  Speaker 2: for anybody that wants to understand the twentieth century in America.
• 29:26
  Speaker 2: We have a producer from New Zealand grew up on
• 29:28
  Speaker 2: a sheep farm, doesn't get it.
• 29:30
  Speaker 4: Totally doesn't understand Field of Dreams.
• 29:32
  Speaker 1: It's all now.
• 29:33
  Speaker 5: The movie has Kevin Cosser, has Ray Liota, a sleepless
• 29:36
  Speaker 5: Joe killed it.
• 29:36
  Speaker 4: Rale, Burt Lancaster.
• 29:39
  Speaker 2: I think his last movie it was just to watch
• 29:41
  Speaker 2: Bert Lancaster up in Minnesota as the Doctor's Worth.
• 29:44
  Speaker 4: It tell us about the Bronx is burning well.
• 29:46
  Speaker 5: My book is also about baseball, but it's the opposite
• 29:49
  Speaker 5: of gauzy and feel good.
• 29:50
  Speaker 1: It's gritty and chaotic.
• 29:52
  Speaker 5: It's about the nineteen seventy seven New York Yankees when
• 29:55
  Speaker 5: Billy Martin was feuding with George Steinbetter, Reggie Jackson was dominating.
• 29:59
  Speaker 5: And the title first of what Howard Kosel said on
• 30:01
  Speaker 5: air after a fire broke out in a school near
• 30:04
  Speaker 5: Yankee Stadium. There it is ladies and gentlemen, the Bronx
• 30:07
  Speaker 5: is burning. Remember in nineteen seventy seven, summer of Son
• 30:11
  Speaker 5: of Sam was on the loose. Yeah, you had a blackout.
• 30:15
  Speaker 5: The looting that happened across New York City. Ed Kach
• 30:18
  Speaker 5: versus Mario Cuomo fighting for the mayoral.
• 30:21
  Speaker 2: Talked as a malaise, and of course in New York
• 30:23
  Speaker 2: City it was front and center. And you think of
• 30:26
  Speaker 2: Mayor Giuliani and those following that pulled us out of it.
• 30:29
  Speaker 2: But your book is brilliant of attention there from another time,
• 30:33
  Speaker 2: away from the magic and nostalgia field.
• 30:35
  Speaker 5: It's gritty, it's New York, it's history, it's spaceball, it's
• 30:38
  Speaker 5: all that, and it's I must read. All right, So
• 30:40
  Speaker 5: let's talk about sports, because we're going to stay on this.
• 30:44
  Speaker 5: Then even into personal finance.
• 30:45
  Speaker 2: My people briefly, we don't talk to each other before
• 30:48
  Speaker 2: the show, and my people briefed what they learned from
• 30:51
  Speaker 2: Scarlett's people.
• 30:52
  Speaker 4: This is upsetting.
• 30:53
  Speaker 1: It is upsetting.
• 30:53
  Speaker 5: And this is a story that Bloomberg News wrote this
• 30:55
  Speaker 5: week on our money platform. It's centered on how sports
• 30:58
  Speaker 5: betting is entering wealth management plans financial planning for gen Zers.
• 31:03
  Speaker 5: Sujasong joins us now to discuss. So the idea here
• 31:06
  Speaker 5: is that certain members of the gen Z cohort see
• 31:10
  Speaker 5: sports betting as a legitimate alternative to investing or see
• 31:13
  Speaker 5: it as a form of investing.
• 31:15
  Speaker 7: Yes, exactly, So one in four gen Z investors actually
• 31:18
  Speaker 7: consider sports betting as part of their deliberate, ongoing component
• 31:22
  Speaker 7: of their long term financial plans. And I think this
• 31:25
  Speaker 7: really is related to how fast sports betting industry has grown,
• 31:29
  Speaker 7: and along with it, it's the prediction market's rapid expansion
• 31:34
  Speaker 7: where companies kind of brand themselves as investing platforms, and
• 31:38
  Speaker 7: this is changing how gen Z and younger Americans are
• 31:40
  Speaker 7: thinking about wealth building and financial planning.
• 31:43
  Speaker 5: Now, some of the people who do this say that
• 31:46
  Speaker 5: they approach sports betting with kind of the dispassionate eye
• 31:50
  Speaker 5: that they would look at investing, which I find really fascinating.
• 31:52
  Speaker 5: Like they say they don't get let emotion get caught
• 31:54
  Speaker 5: up in any of this.
• 31:55
  Speaker 7: Yeah, that's what they say. And we talked to some
• 31:59
  Speaker 7: long term sports betters actually, and they said they've gotten
• 32:02
  Speaker 7: increasingly analytical in their approaches. They would do research on
• 32:05
  Speaker 7: sports teams and then they would like maybe section off
• 32:09
  Speaker 7: a part of their money to just put in sports betting.
• 32:12
  Speaker 7: One person actually won some twenty five hundred this year
• 32:15
  Speaker 7: and was able to fund their entire vacation to a
• 32:18
  Speaker 7: bet shot.
• 32:19
  Speaker 4: Okay.
• 32:20
  Speaker 2: I just went to you know, I went to AI
• 32:22
  Speaker 2: and all that to look at this. How many people
• 32:24
  Speaker 2: make money at Keelshiet, how many people make money at
• 32:28
  Speaker 2: fan Duel on the left field wall out at Field
• 32:31
  Speaker 2: of Dreams last night.
• 32:32
  Speaker 7: That's a really good question. Is actually, over the long term,
• 32:35
  Speaker 7: consistent profitters off these platforms are the top maybe one
• 32:40
  Speaker 7: or two five percent.
• 32:41
  Speaker 4: Okay, so let's be charitables. Five percent.
• 32:42
  Speaker 2: You're telling me ninety five percent of people lose money
• 32:45
  Speaker 2: and we're calling it a financial plan of our personal finance.
• 32:49
  Speaker 1: Over the long term.
• 32:50
  Speaker 7: Yes, they are not profitable ninety five percent, But I
• 32:53
  Speaker 7: think it really is has to.
• 32:54
  Speaker 4: Do what do you laughing at?
• 32:56
  Speaker 1: For us?
• 32:57
  Speaker 4: I'm the fossil here for a certain.
• 32:59
  Speaker 5: Covert, they're thinking, you know what, I'm gonna be the
• 33:01
  Speaker 5: one that beats the odds, and you know you got.
• 33:04
  Speaker 1: To go big.
• 33:05
  Speaker 4: Come on last night, I mean, what'd you think? Did
• 33:07
  Speaker 4: you watch Field of Dreams last night? The baseball game?
• 33:10
  Speaker 4: Are you telling me? It's like it's like the Netflix
• 33:13
  Speaker 4: ratings will be huge.
• 33:14
  Speaker 2: The Hall of Famers are coming out of the cornfield
• 33:16
  Speaker 2: shoeless joke came out of there's a fan duel.
• 33:19
  Speaker 4: Sign on the left field sign. I mean, that's what.
• 33:22
  Speaker 4: It's your fault.
• 33:24
  Speaker 5: It's a dose of twenty twenty six on your Field
• 33:26
  Speaker 5: of Dreams. Tom can be helped.
• 33:28
  Speaker 4: We'll have to see.
• 33:30
  Speaker 1: All right. Well, so John, thank you so much.
• 33:31
  Speaker 4: Too upset to talk.
• 33:32
  Speaker 5: You really really appreciate it. It's it's fascinating this idea.
• 33:35
  Speaker 5: Because we talk about the financial nihilism among younger people.
• 33:38
  Speaker 1: This is kind of a an offshoot of that.
• 33:41
  Speaker 4: I strongly agree money what are you crying?
• 33:50
  Speaker 1: Why are you crying?
• 33:50
  Speaker 4: They're going to college? Said, it's just terrible. Here, it's
• 33:55
  Speaker 4: the door. What your hurry joining us?
• 33:58
  Speaker 5: Lisa?
• 33:59
  Speaker 4: Are you going to go to college?
• 34:01
  Speaker 2: No?
• 34:02
  Speaker 1: I have like two weeks.
• 34:03
  Speaker 12: I'm at my It's going to be difficult, but one
• 34:07
  Speaker 12: thing I don't have to worry about and this is
• 34:09
  Speaker 12: what a lot of parents are going to be spending
• 34:10
  Speaker 12: their money on this weekend is Southern sorority Rush. Tom.
• 34:14
  Speaker 12: I know you're familiar with mid Day. It is huge
• 34:17
  Speaker 12: down there. Okay, So this is for the past week.
• 34:20
  Speaker 12: Girls have gone to school early. These are all girls
• 34:22
  Speaker 12: who want to go to these Southern schools, Okay.
• 34:24
  Speaker 1: And they've been on Instagram and TikTok.
• 34:25
  Speaker 12: And all the things picking out which organization they want
• 34:28
  Speaker 12: to go to. And so they've been going through the
• 34:30
  Speaker 12: interview process, they've been going to the events. They've been
• 34:33
  Speaker 12: wearing the dresses, the makeup, just to make sure that
• 34:35
  Speaker 12: they get into the sorority of their choice. And this
• 34:37
  Speaker 12: week and they're going to find out if they do
• 34:39
  Speaker 12: or not. But the money behind this is because there
• 34:42
  Speaker 12: are parents out there who are paying get this sorority
• 34:46
  Speaker 12: rush consultants in order for their.
• 34:49
  Speaker 5: Kids to get into the have they consult with them.
• 34:53
  Speaker 5: They're not like they're not outreaches for these organizations themselves.
• 34:57
  Speaker 12: They're kind of out and He's like some of them
• 34:58
  Speaker 12: are women who did pledge and so they're giving advice.
• 35:01
  Speaker 12: So they're charging these parents as much to get the
• 35:03
  Speaker 12: inside scoop anywhere from three thousand.
• 35:05
  Speaker 1: To twelve thousand dollars.
• 35:07
  Speaker 12: What's something to go over to go over their resumes,
• 35:10
  Speaker 12: to get their headshots done, to go through their social
• 35:12
  Speaker 12: media feed, to make sure they talk correctly.
• 35:14
  Speaker 1: Where the right thing say the right thing?
• 35:16
  Speaker 4: Girl talk? Okay?
• 35:18
  Speaker 2: Ten twenty five fifteenth Street, Boulder, the Tridel House. The
• 35:22
  Speaker 2: way you got ready to rush is you got a
• 35:24
  Speaker 2: six pack of three two cores beer.
• 35:26
  Speaker 4: I think really the rich girls had a quarter keg
• 35:29
  Speaker 4: out front. Of course that's what you did.
• 35:31
  Speaker 1: That that's not but it's a use.
• 35:38
  Speaker 12: And what's make this story bigger is because it's finally
• 35:41
  Speaker 12: becoming big in the Northeast, in the Midwest, in the
• 35:43
  Speaker 12: West where it wasn't popular before. So now you have
• 35:46
  Speaker 12: all these outsiders coming into this little community.
• 35:48
  Speaker 4: Does any Cornell did they do this?
• 35:51
  Speaker 5: I mean, I don't know about sorority rush consultants. I
• 35:53
  Speaker 5: don't know the amount of money that people are spending.
• 35:56
  Speaker 5: But that's you know, when I went to school, that
• 35:57
  Speaker 5: was ancient history.
• 35:58
  Speaker 2: Well to me, the number one thing here is a dad.
• 36:02
  Speaker 2: Is anybody going to school? Is anybody taking so.
• 36:06
  Speaker 5: Wait, wait, but this is why this is happening. Before
• 36:08
  Speaker 5: the semester begins. Lisa made that clear. People are going, oh.
• 36:11
  Speaker 4: They have the first day of school, yes.
• 36:13
  Speaker 12: Yes, and then they have to pay the dues after
• 36:15
  Speaker 12: they pay the consultants. So we have any the does
• 36:17
  Speaker 12: it can be anywhere from five thousand semester to ten
• 36:19
  Speaker 12: thousand semester, depending on if you want the housing and
• 36:21
  Speaker 12: the room.
• 36:22
  Speaker 1: And board of them. Incredible. This is the story on
• 36:23
  Speaker 1: the Bloomberg terminal. By the story in Bloomberg.
• 36:25
  Speaker 12: Yes, you have to check it out. It was fascinating
• 36:28
  Speaker 12: going through.
• 36:29
  Speaker 5: And I'm telling you there's a lot on social media
• 36:31
  Speaker 5: about this.
• 36:32
  Speaker 12: There is a ton of it. But thankfully, yes, my
• 36:34
  Speaker 12: daughter's not involved in me.
• 36:35
  Speaker 5: Okay, well, let's let's get back to the calendar events.
• 36:37
  Speaker 1: What's coming up next week?
• 36:38
  Speaker 5: Because we've been talking about the consumer, they say to
• 36:40
  Speaker 5: the consumer, retail sales number came out today which were disappointing.
• 36:43
  Speaker 5: We get more of an inside read on retail companies, right, Yes.
• 36:47
  Speaker 12: A lot of retail companies.
• 36:48
  Speaker 1: So let's go through it.
• 36:49
  Speaker 12: We'll start it with on Tuesday, you have home Depot,
• 36:52
  Speaker 12: that's a big one.
• 36:52
  Speaker 7: Right.
• 36:52
  Speaker 12: Then you get to Wednesday, Sday, Lauder, Target, Lows, TJX,
• 36:56
  Speaker 12: and then we end off on Thursday with Walmart and
• 36:59
  Speaker 12: Ross stores too, so a big week for retail earnings.
• 37:02
  Speaker 1: Next week.
• 37:02
  Speaker 2: This is the Bloomberg Money Podcast, bringing you a smart
• 37:06
  Speaker 2: look at the forces shaping your financial life.
• 37:10
  Speaker 4: I'm Tom Keen with Scarlet Food.
• 37:12
  Speaker 2: You can watch the show live on Bloomberg TV every
• 37:15
  Speaker 2: Friday at noon Wall Street Time. Subscribe to the podcast
• 37:19
  Speaker 2: on Apple, Spotify, or wherever you listen, and is always
• 37:24
  Speaker 2: on the Bloomberg Terminal and the Bloomberg Business app.