Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus global business, finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.

Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus global business, finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.

I'm Carol Masser, and I'm live here in Huntington Beach at future Proof. Barry Ridtholtz, by the way, is going to join us in such in just a few minutes. He's my co host over the next couple of days, very involved in future Proof, so he's going to join our discussion in just a moment. Right now, though, I want to get to the individual who's responsible for creating this just a couple of years ago and responsible for putting it on.

I'm Carol Masser, and I'm live here in Huntington Beach at future Proof. Barry Ridtholtz, by the way, is going to join us in such in just a few minutes. He's my co host over the next couple of days, very involved in future Proof, so he's going to join our discussion in just a moment. Right now, though, I want to get to the individual who's responsible for creating this just a couple of years ago and responsible for putting it on.

We're talking about Matt Middleton.

We're talking about Matt Middleton.

He's a former growth strategy director at the media publisher informa co creator of the financial advisor conference wealth Stack. He's the founder and CEO of future Proof and joins us here. And I should say welcome, but thank you for.

He's a former growth strategy director at the media publisher informa co creator of the financial advisor conference wealth Stack. He's the founder and CEO of future Proof and joins us here. And I should say welcome, but thank you for.

Environment Oh, thank you for being here.

Environment Oh, thank you for being here.

It's amazing tell us about this event, in particular because I've been to a lot of investment conferences. Everyone has its certain feel, but this is something different. And I don't know, is it just that it's outside and at the beach or something else.

It's amazing tell us about this event, in particular because I've been to a lot of investment conferences. Everyone has its certain feel, but this is something different. And I don't know, is it just that it's outside and at the beach or something else.

It's a little bit of everything.

It's a little bit of everything.

So if we created this in twenty twenty two, with the original thought being in twenty twenty, if we recall COVID, the events in industry came to a screeching halt, right, And so at that time most in the event space looked at it and said, well, we're going to go digital because content digital makes sense. People aren't going to travel, risk their health, leave their family, and as an industry, we're a relationship business, right, and so FaceTime is really important. So we had this idea very early on that content is important, but more importantly is the networking and the experience. And so how do you create that in a live event setting? And unfortunately, most events that are positioned inside a ballroom or a captive space, right don't afford you the freedom, the casual nature and tone. Right. This is the first event that I've ever worked T shirt at in our industry, and it's fitting right, I fit right in, And so the elements are you know, it's outdoor, it's casual. You have really interesting senior level people here. They're open to sharing, right. And then we use network, we use technology to better connect the industry. So, while this event has gotten bigger, if you come as an individual with a key objective, it's likely that that objective will be meant either by the people you meet or the content you could attend through the five stages.

So if we created this in twenty twenty two, with the original thought being in twenty twenty, if we recall COVID, the events in industry came to a screeching halt, right, And so at that time most in the event space looked at it and said, well, we're going to go digital because content digital makes sense. People aren't going to travel, risk their health, leave their family, and as an industry, we're a relationship business, right, and so FaceTime is really important. So we had this idea very early on that content is important, but more importantly is the networking and the experience. And so how do you create that in a live event setting? And unfortunately, most events that are positioned inside a ballroom or a captive space, right don't afford you the freedom, the casual nature and tone. Right. This is the first event that I've ever worked T shirt at in our industry, and it's fitting right, I fit right in, And so the elements are you know, it's outdoor, it's casual. You have really interesting senior level people here. They're open to sharing, right. And then we use network, we use technology to better connect the industry. So, while this event has gotten bigger, if you come as an individual with a key objective, it's likely that that objective will be meant either by the people you meet or the content you could attend through the five stages.

Yeah, I have to say there is something about things being more casual. I definitely overdressed, and tomorrow it'll be different. I did where flip flops over. But having said that, there is something about putting in a casual setting. And while I always do see meetings that investment conferences, it's just everywhere I look, it's people stopping, there's tables, everybody's sitting down talking. I mean there's a lot of activity and interest when you thought about the subjects that you wanted to cover. Also, I was asked by my co ancher who's back in New York, he said, what about the FED?

Yeah, I have to say there is something about things being more casual. I definitely overdressed, and tomorrow it'll be different. I did where flip flops over. But having said that, there is something about putting in a casual setting. And while I always do see meetings that investment conferences, it's just everywhere I look, it's people stopping, there's tables, everybody's sitting down talking. I mean there's a lot of activity and interest when you thought about the subjects that you wanted to cover. Also, I was asked by my co ancher who's back in New York, he said, what about the FED?

Is that something? I mean, you're covering the important topics that are out there as well.

Is that something? I mean, you're covering the important topics that are out there as well.

Yeah.

Yeah.

So the majority of this audience is RIA, right, and the RAA is the fastest growing channel within the investment management ecosystem. And so these folks are here to look, how do they develop their business, how do they recruit retain right? They want to grow access to investment content. Yes, it's plentiful here, but it's far ranging here because there's more than just the investment content that they come for. They want to come for practice management, they want to come for what's happening with technology and so bas on a very wide swath of content and therefore bring across generational, cross functional ecosystem versus just the standard investment conference or just the standard you know, technology conference. Yeah.

So the majority of this audience is RIA, right, and the RAA is the fastest growing channel within the investment management ecosystem. And so these folks are here to look, how do they develop their business, how do they recruit retain right? They want to grow access to investment content. Yes, it's plentiful here, but it's far ranging here because there's more than just the investment content that they come for. They want to come for practice management, they want to come for what's happening with technology and so bas on a very wide swath of content and therefore bring across generational, cross functional ecosystem versus just the standard investment conference or just the standard you know, technology conference. Yeah.

I mean, these guys are running businesses, right, I mean one of the guests that we're going to talk about is you know, legacy, like the involvement. You have got this entrenched firm, and then they've got to think about what happens after either a founder, right or co founder you know, either leaves the firm, seals the firm.

I mean, these guys are running businesses, right, I mean one of the guests that we're going to talk about is you know, legacy, like the involvement. You have got this entrenched firm, and then they've got to think about what happens after either a founder, right or co founder you know, either leaves the firm, seals the firm.

You have to think about some of those issues.

You have to think about some of those issues.

I mean, they're predominantly small businesses, right, So when you think about this, you know, many years ago when this channels arted, these folks were building firms locally and then it grew and then they maybe acquired someone and became national, and now they're looking at it. Well, you know, I'm in my mid fifties and early sixties. What's my secession planned?

I mean, they're predominantly small businesses, right, So when you think about this, you know, many years ago when this channels arted, these folks were building firms locally and then it grew and then they maybe acquired someone and became national, and now they're looking at it. Well, you know, I'm in my mid fifties and early sixties. What's my secession planned?

Right?

Right?

I want to leave a legacy, I have a team, right, But I also want to retire and relax and enjoy my life as well. And you know it's a culmination of all of this. So you'll see at the content here. We'll have plentiful investment focused content, but we also have a state planning. We also have you know, technology focused right, how to build your tech stack as an entrepreneur. You know, there's over two hundred and seventy five you know vendors here. And they're not just here, you know, handing out fact sheets like the old days, right, they're there, they're demoing, they're talking to folks. They're basically getting feedback to how to better serve this ecosystem.

I want to leave a legacy, I have a team, right, But I also want to retire and relax and enjoy my life as well. And you know it's a culmination of all of this. So you'll see at the content here. We'll have plentiful investment focused content, but we also have a state planning. We also have you know, technology focused right, how to build your tech stack as an entrepreneur. You know, there's over two hundred and seventy five you know vendors here. And they're not just here, you know, handing out fact sheets like the old days, right, they're there, they're demoing, they're talking to folks. They're basically getting feedback to how to better serve this ecosystem.

How did you know that there was room for another investment conference?

How did you know that there was room for another investment conference?

I didn't.

I didn't.

No, No, that's fair.

No, No, that's fair.

Honestly, it's a very crowded marketplace, you know. The you know, I've been doing this for fifteen years. My view was as of someone who attended all these events during COVID, I kind of said, do I really want to, you know, go do this again? Right where you go to these events and you're trapped, right and you're consuming content twelve hours a day. The only time you break away from this beautiful resort is to go get a steak dinner. And to me, that felt not organic. And so the thesis really here and most.

Honestly, it's a very crowded marketplace, you know. The you know, I've been doing this for fifteen years. My view was as of someone who attended all these events during COVID, I kind of said, do I really want to, you know, go do this again? Right where you go to these events and you're trapped, right and you're consuming content twelve hours a day. The only time you break away from this beautiful resort is to go get a steak dinner. And to me, that felt not organic. And so the thesis really here and most.

People look at it. We call it a festival.

People look at it. We call it a festival.

It's bright colors, it's everything that is not traditional to our industry.

It's bright colors, it's everything that is not traditional to our industry.

But the real it almost has a Barbie feel.

But the real it almost has a Barbie feel.

Hence yeah, pay yes and my skin tone right now at the sunburns. But really, when you think about it at an essence, right, the outdoor element is just a way to bring this out, which is we're all humans at the end of the day, and we want to connect people financial professionals in our industry at the human level, which means what right we want to connect people based on their hobbies, their interests, their lifestyle. We believe that as an industry, if we could find those connection points where you could make new connections or further your existing relationships in a very organic way, well then maybe we could actually do better at getting business done naturally. In our industry and further the growth of all different sectors here. And so that's why you'll see we have a music conference tomorrow, we have culinary demonstrations.

Hence yeah, pay yes and my skin tone right now at the sunburns. But really, when you think about it at an essence, right, the outdoor element is just a way to bring this out, which is we're all humans at the end of the day, and we want to connect people financial professionals in our industry at the human level, which means what right we want to connect people based on their hobbies, their interests, their lifestyle. We believe that as an industry, if we could find those connection points where you could make new connections or further your existing relationships in a very organic way, well then maybe we could actually do better at getting business done naturally. In our industry and further the growth of all different sectors here. And so that's why you'll see we have a music conference tomorrow, we have culinary demonstrations.

Right.

Right.

You use a lot of food around.

You use a lot of food around.

Of course, there's no shortage of food here.

Of course, there's no shortage of food here.

It's a good thing.

It's a good thing.

Having said that, you know what's interesting too, is I think we're going to talk with the CEO of Betterment and thinking about the next generation of investing and I just even think about the next generation of how we as financial professionals are we as media cover it that things are changing, right, And like I said, this has got a very different feel and the approach to what you guys is doing is very different from I feel like what's out there. Yeah, not to not to pooh pooh or criticize anything that's out there, but you do see an evolution.

Having said that, you know what's interesting too, is I think we're going to talk with the CEO of Betterment and thinking about the next generation of investing and I just even think about the next generation of how we as financial professionals are we as media cover it that things are changing, right, And like I said, this has got a very different feel and the approach to what you guys is doing is very different from I feel like what's out there. Yeah, not to not to pooh pooh or criticize anything that's out there, but you do see an evolution.

Well, I mean what's important here is that we have a multi generational audience.

Well, I mean what's important here is that we have a multi generational audience.

Right.

Right.

You have folks that are here that we were talking about secession planning. They're thinking about, all, right, what's where's my firm going? Right, how do I keep my employees engaged and involved? Or maybe hey, I'm looking to sell my business? Right, And then you have the opposite spectrum. Right, you have folks that are sitting here and saying I'm just getting started, right, I want to meet folks like Barry, Right, I need to understand Ary Bhill Crah.

You have folks that are here that we were talking about secession planning. They're thinking about, all, right, what's where's my firm going? Right, how do I keep my employees engaged and involved? Or maybe hey, I'm looking to sell my business? Right, And then you have the opposite spectrum. Right, you have folks that are sitting here and saying I'm just getting started, right, I want to meet folks like Barry, Right, I need to understand Ary Bhill Crah.

So let me ask Matt introducing people up.

So let me ask Matt introducing people up.

That's right, I just introduced the strategists talking about what they see coming in the coming years. But Matt, your innovation, your creativity, your genius really is what led to us doing this big outdoor event. How far can we press this concept?

That's right, I just introduced the strategists talking about what they see coming in the coming years. But Matt, your innovation, your creativity, your genius really is what led to us doing this big outdoor event. How far can we press this concept?

Where you going to go with this?

Where you going to go with this?

Yeah?

Yeah?

So I think this event could scale to ten thousand.

So I think this event could scale to ten thousand.

Right.

Right.

The RIA space is rapidly growing, and there's no shortage of people coming each and every year, and there's certainly no shortage of people supporting these types of events.

The RIA space is rapidly growing, and there's no shortage of people coming each and every year, and there's certainly no shortage of people supporting these types of events.

Right.

Right.

So you know our thesis is to have an outdoor festival type, very modern approach to conferences and therefore serve the next generation.

So you know our thesis is to have an outdoor festival type, very modern approach to conferences and therefore serve the next generation.

Right.

Right.

We want these events to last for the next ten to twenty years, and therefore you need to think about who you're attracting to it. Right. So the generations that we attract are at every stage, right, It's not just we want.

We want these events to last for the next ten to twenty years, and therefore you need to think about who you're attracting to it. Right. So the generations that we attract are at every stage, right, It's not just we want.

The CEOs at this stage that you know.

The CEOs at this stage that you know.

In twenty years, they're not going to be in the bus, and so we think about it like that. So, going from this event, we announced future Proof citywide in March of next year, and that's gonna be in Miami Beach. We have several different retreats. We're really taking this future Proof concept into an enterprise business serving the entire wealth and asset management ecosystem.

In twenty years, they're not going to be in the bus, and so we think about it like that. So, going from this event, we announced future Proof citywide in March of next year, and that's gonna be in Miami Beach. We have several different retreats. We're really taking this future Proof concept into an enterprise business serving the entire wealth and asset management ecosystem.

How about the French Riviera? Where else would we like to go? In Greek islands and real Greek islands?

How about the French Riviera? Where else would we like to go? In Greek islands and real Greek islands?

How about Bahamas?

How about Bahamas?

Back We're going to be in the Bahamas next October.

Back We're going to be in the Bahamas next October.

I'm just saying, right October, Bahamas.

I'm just saying, right October, Bahamas.

Warren Cup, I'm just like planning it now. Good luck.

Warren Cup, I'm just like planning it now. Good luck.

Thank you so much, so much. I appreciate it.

Thank you so much, so much. I appreciate it.

Yeah, thank you so much for inviting us.

Yeah, thank you so much for inviting us.

The founder and CEO of future Proof, Matt Middleton, all right, you are listening and watching Blueberg Business Week. We're gonna get David Kelly up there in just a moment, but I want to turn to you.

The founder and CEO of future Proof, Matt Middleton, all right, you are listening and watching Blueberg Business Week. We're gonna get David Kelly up there in just a moment, but I want to turn to you.

Tell me a little bit about how things are going.

Tell me a little bit about how things are going.

So far, so far, so great.

So far, so far, so great.

I mean, this is this is your event.

I mean, this is this is your event.

Yeah.

Yeah.

So the funny story with Matt was we were talking we had done events previously in before the pandemic. Yeah, and twenty one things were starting to open up again and at least take year to plan an event. Hey, we'd love to do an event again. How do we not make it a super spreader event? He's like, I know, We'll do the whole thing outdoors in California, which is brilliant and it's worked out fantastically. It's so much more enjoyable and so much so refreshing compared.

So the funny story with Matt was we were talking we had done events previously in before the pandemic. Yeah, and twenty one things were starting to open up again and at least take year to plan an event. Hey, we'd love to do an event again. How do we not make it a super spreader event? He's like, I know, We'll do the whole thing outdoors in California, which is brilliant and it's worked out fantastically. It's so much more enjoyable and so much so refreshing compared.

To Are you surprised at how well it has done?

To Are you surprised at how well it has done?

I always there was a lot of skepticism when we first announced this, but we'd work with Matt and his team for years. I have a great deal confidence in him, and I figured, worse comes to worse, we'll land on our face and we'll spend a week in California.

I always there was a lot of skepticism when we first announced this, but we'd work with Matt and his team for years. I have a great deal confidence in him, and I figured, worse comes to worse, we'll land on our face and we'll spend a week in California.

That's not the if.

That's not the if.

That's your downside, right, But it worked out great. That was four years ago. This is our third one, right, and we're thrilled with it.

That's your downside, right, But it worked out great. That was four years ago. This is our third one, right, and we're thrilled with it.

All right, Well, we want to We're also thrilled to have next US right now.

All right, Well, we want to We're also thrilled to have next US right now.

David Kelly, who's joining us, he's the chief Global market strategis over at JP Morgan Asset Management with us on site at future Proof.

David Kelly, who's joining us, he's the chief Global market strategis over at JP Morgan Asset Management with us on site at future Proof.

Nice to have you here. You're very involved in this event.

Nice to have you here. You're very involved in this event.

Yeah, really excited to be here.

Yeah, really excited to be here.

Well, tell me about the mood and the mood you are having right now. Thinking, you know, we've got a FED meeting. You know, we expect the FED to do something, But what's the mood. It feels like everybody's feeling pretty good right now.

Well, tell me about the mood and the mood you are having right now. Thinking, you know, we've got a FED meeting. You know, we expect the FED to do something, But what's the mood. It feels like everybody's feeling pretty good right now.

Well, I think that's right. I mean, it's been a very good year for markets, you know, the S and p FO. I've found that it's up eighteen percent a year to date. Bond eels are down. The economy is doing fine. I mean it's slowing down, but it was supposed to slow down, you know, but unemployment slow, inflations come down, so the backdrop is good. I think the financial industry is doing very well right now. And I just think that there's a little nervousness that that that the FED might somehow, you know, panic on Wednesday and scare people.

Well, I think that's right. I mean, it's been a very good year for markets, you know, the S and p FO. I've found that it's up eighteen percent a year to date. Bond eels are down. The economy is doing fine. I mean it's slowing down, but it was supposed to slow down, you know, but unemployment slow, inflations come down, so the backdrop is good. I think the financial industry is doing very well right now. And I just think that there's a little nervousness that that that the FED might somehow, you know, panic on Wednesday and scare people.

Bill Dudley, former head of the New York Fed, you know, thinks the Fed should be more aggressive.

Bill Dudley, former head of the New York Fed, you know, thinks the Fed should be more aggressive.

I think that he should have done that. They should have done it probably already.

I think that he should have done that. They should have done it probably already.

Well, I agree that they should have started cutting earlier, Yes, but bringing interest rates down. It's like lowering a piano down from the fourth floor of a building. You need to do it slowly and carefully. And what I think the FED is the fact that initially you cut rates, you hurt the economy. Why is that? Because you know you talk about long and variable ags. What happened. There are three very bad things that happened with the FED cuts, and this is particularly going to be the case that they're cut by fifty. First of all, you squeeze the interest income of all those American consumers have got money in money market funds, particularly older Americans. Second of all, if a FED cuts fifty, then the thing that's going to immediately happen is on programs like this and all over all over American people can say, what are they so scared about it? They must see a Recessiony're gonna at all these numbers. So if I'm going to hire somebody, maybe I wait a while. I was going to buy a car, maybe I should put that off. That's what people want to wait and see. The third thing that happens, which is terrible, is that you know you're thinking about taking out a mortgage, You're gonna take it a more each day, you want to wait a while. I think I'll wait a while, right, I mean, if they're cut in fifty, are going to cut some more. The problem is they don't get this. I wish I could get people to understand this. There is a J curve effect. You actually hurt the economy before you help. But now when rates get very low're actually stimidating the economy. But it waits. You have to wait to get to that point. And that's what frankly, Bill Dudley doesn't get. That's what all the people are calling for aggressive cutting. Don't get this economy is fine, don't mess with it. So gradually take rates down, slowly the nothing going on over here.

Well, I agree that they should have started cutting earlier, Yes, but bringing interest rates down. It's like lowering a piano down from the fourth floor of a building. You need to do it slowly and carefully. And what I think the FED is the fact that initially you cut rates, you hurt the economy. Why is that? Because you know you talk about long and variable ags. What happened. There are three very bad things that happened with the FED cuts, and this is particularly going to be the case that they're cut by fifty. First of all, you squeeze the interest income of all those American consumers have got money in money market funds, particularly older Americans. Second of all, if a FED cuts fifty, then the thing that's going to immediately happen is on programs like this and all over all over American people can say, what are they so scared about it? They must see a Recessiony're gonna at all these numbers. So if I'm going to hire somebody, maybe I wait a while. I was going to buy a car, maybe I should put that off. That's what people want to wait and see. The third thing that happens, which is terrible, is that you know you're thinking about taking out a mortgage, You're gonna take it a more each day, you want to wait a while. I think I'll wait a while, right, I mean, if they're cut in fifty, are going to cut some more. The problem is they don't get this. I wish I could get people to understand this. There is a J curve effect. You actually hurt the economy before you help. But now when rates get very low're actually stimidating the economy. But it waits. You have to wait to get to that point. And that's what frankly, Bill Dudley doesn't get. That's what all the people are calling for aggressive cutting. Don't get this economy is fine, don't mess with it. So gradually take rates down, slowly the nothing going on over here.

Don't take great adjustment.

Don't take great adjustment.

Just take it down. It's a fine economy.

Just take it down. It's a fine economy.

When you're working on somebody's back, right, you don't just it's you.

When you're working on somebody's back, right, you don't just it's you.

Know, they're like, you know, it's like medieval medicine. I mean, you know, the most dangerous thing is when you're told the doctor's going to come to cry you because they'll probably kill you. I mean, just just amputation.

Know, they're like, you know, it's like medieval medicine. I mean, you know, the most dangerous thing is when you're told the doctor's going to come to cry you because they'll probably kill you. I mean, just just amputation.

So let's let's take this down a couple of months, quarter point, a half, a point, It really doesn't matter.

So let's let's take this down a couple of months, quarter point, a half, a point, It really doesn't matter.

It feels like they're way behind the curve.

It feels like they're way behind the curve.

Where did they end up If not fifty, it's certainly not going to be fifty to fifty to fifty. Where do you see this going by the first quarter of next year?

Where did they end up If not fifty, it's certainly not going to be fifty to fifty to fifty. Where do you see this going by the first quarter of next year?

Well, there is I mean, I don't think they're way behind the curve. I don't think they should have pushed rights up high as high as they did. I think they should have started earlier. But let's not over estimate the importance of all this for the economy. The rates are too high because the economy is basically a good place, and you need to gradually bring rates down to a normal level. I think normal is probably three and a half to four percent of the federal funds, So you need to gradually do that. My preference would be if they and I think they use a Dolt plot, and I think this is the way that they can express this. What I would love to see on Wednesday is two dots in twenty twenty four and four dots next year. So you're going to take fifty basis points this year and then another one hundred basis points next year. I don't know if we'll see that or not, but I hope that that's what we see. But they don't need to do this aggressively. The damage they did by pushing rates up too high is already been done, but bringing it down too fast will actually make the problem worse.

Well, there is I mean, I don't think they're way behind the curve. I don't think they should have pushed rights up high as high as they did. I think they should have started earlier. But let's not over estimate the importance of all this for the economy. The rates are too high because the economy is basically a good place, and you need to gradually bring rates down to a normal level. I think normal is probably three and a half to four percent of the federal funds, So you need to gradually do that. My preference would be if they and I think they use a Dolt plot, and I think this is the way that they can express this. What I would love to see on Wednesday is two dots in twenty twenty four and four dots next year. So you're going to take fifty basis points this year and then another one hundred basis points next year. I don't know if we'll see that or not, but I hope that that's what we see. But they don't need to do this aggressively. The damage they did by pushing rates up too high is already been done, but bringing it down too fast will actually make the problem worse.

Recession off the table at this point, David.

Recession off the table at this point, David.

Recession is never off the table. What I say is we're not going to get an indulgenous recession. In other words, it's not something that's built in the system right now.

Recession is never off the table. What I say is we're not going to get an indulgenous recession. In other words, it's not something that's built in the system right now.

External shock.

External shock.

It's got to be an external shock. I mean, I'm looking at.

It's got to be an external shock. I mean, I'm looking at.

So do you roll at external shocks?

So do you roll at external shocks?

No, of course we're going to know. The history of the twenty first century is nothing but external shocks. I mean, that's what happens, and eventually that'll get us. But it is important to realize that the traditional business cycle, that stress is already behind us. The point of twich high interest rates calls a collapse in investments, There has been no collapse in investments spending. There's been no colaps in GDP growth either. By the way, you know, GDP is up three point one percent a year of the year. We've in the second quarter. We think we got about two percent of the third quarter, So there's really no no particular problem there.

No, of course we're going to know. The history of the twenty first century is nothing but external shocks. I mean, that's what happens, and eventually that'll get us. But it is important to realize that the traditional business cycle, that stress is already behind us. The point of twich high interest rates calls a collapse in investments, There has been no collapse in investments spending. There's been no colaps in GDP growth either. By the way, you know, GDP is up three point one percent a year of the year. We've in the second quarter. We think we got about two percent of the third quarter, So there's really no no particular problem there.

So last question, why has so many economists got this wrong? Why are so many people expecting a recession that never seems to come?

So last question, why has so many economists got this wrong? Why are so many people expecting a recession that never seems to come?

And just got about ten fifteen seconds?

And just got about ten fifteen seconds?

Well, I think because they I think they listen to the mood rather than read all the numbers. You've got all the numbers, imperfect, but you've got to look at all of them in order to get the right mosaic. And the mosaic looks pretty good.

Well, I think because they I think they listen to the mood rather than read all the numbers. You've got all the numbers, imperfect, but you've got to look at all of them in order to get the right mosaic. And the mosaic looks pretty good.

All right, Gonna leave it there. Great stuff, David Kelly, Thank you so much, David Kelly. Of course if JP Morgan Asset Management. Folks, this is BusinessWeek.

All right, Gonna leave it there. Great stuff, David Kelly, Thank you so much, David Kelly. Of course if JP Morgan Asset Management. Folks, this is BusinessWeek.

We're at future Proof in California. Carol Masser, Barry Ridhilts.

We're at future Proof in California. Carol Masser, Barry Ridhilts.

This is Bluebird.

This is Bluebird.

You're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from two to five pm Eastern Listen on Apple car Play and then Broyt Auto with a Bloomberg Business act or watch us live on YouTube.

You're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from two to five pm Eastern Listen on Apple car Play and then Broyt Auto with a Bloomberg Business act or watch us live on YouTube.

Tarl Master along with Barry Ridholts reading in. You're a busy man at these events.

Tarl Master along with Barry Ridholts reading in. You're a busy man at these events.

I run around, I do a lot of things to wear, a lot of hats.

I run around, I do a lot of things to wear, a lot of hats.

He wears a lot of hats.

He wears a lot of hats.

You know he also does of course Masters in Business at the money you run Rid Holt's.

You know he also does of course Masters in Business at the money you run Rid Holt's.

Management, Ridhults Wealts Management, I forget what you titled Farverstow billion dollars right, and then real money.

Management, Ridhults Wealts Management, I forget what you titled Farverstow billion dollars right, and then real money.

Real money, which is why he's a great co host to have during this event because we are talking about the management of real money a lot of it. Want to get to our next guest because we're delighted to have with the Scott Danner. He's head of the Legacy division at the employee owned independent wealth advisory firm Stewart Partners, responsible for over thirty seven billion in client as it has that says of I think August twenty twenty four.

Real money, which is why he's a great co host to have during this event because we are talking about the management of real money a lot of it. Want to get to our next guest because we're delighted to have with the Scott Danner. He's head of the Legacy division at the employee owned independent wealth advisory firm Stewart Partners, responsible for over thirty seven billion in client as it has that says of I think August twenty twenty four.

Some real money thirty seve real money.

Some real money thirty seve real money.

Yeah, firm founded about ten years ago by former Morgan Stanley Barney managers.

Yeah, firm founded about ten years ago by former Morgan Stanley Barney managers.

So you have to explain it, but like like who are these firms?

So you have to explain it, but like like who are these firms?

Yeah, real firms.

Yeah, real firms.

Smith Barney was a giant, So so legacy division. First question, what does that mean?

Smith Barney was a giant, So so legacy division. First question, what does that mean?

So legacy is that next generation? You know, if you think about it, the succession epidemic in our industry is that the average age of advisors successful advisors is fifty eight to sixty two and there's a challenge. What do they do when they're ready to step down and there's a major gap. There are more you know, eighty year olds than thirty year olds in our industry and that's changing. You could see it here. But Legacy division is we had Freedom Street Partners our company. We were acquired by Stewart Partners last year, so I went to market brought our company. We had three and a half billion approximately, you know, a good sized real money firm as well, but we needed that next level and Stewart had not done acquisitions, so we now come in as the acquisition Mergers and Acquisitions division. Legacy just means that next generation, that legacy division, where we can help people that are looking for that next step in their practice or the final stary.

So legacy is that next generation? You know, if you think about it, the succession epidemic in our industry is that the average age of advisors successful advisors is fifty eight to sixty two and there's a challenge. What do they do when they're ready to step down and there's a major gap. There are more you know, eighty year olds than thirty year olds in our industry and that's changing. You could see it here. But Legacy division is we had Freedom Street Partners our company. We were acquired by Stewart Partners last year, so I went to market brought our company. We had three and a half billion approximately, you know, a good sized real money firm as well, but we needed that next level and Stewart had not done acquisitions, so we now come in as the acquisition Mergers and Acquisitions division. Legacy just means that next generation, that legacy division, where we can help people that are looking for that next step in their practice or the final stary.

Were you thinking about it when you sold your firm to Stewart, Like, were you thinking about legacy as well?

Were you thinking about it when you sold your firm to Stewart, Like, were you thinking about legacy as well?

Yes, so this is what we specialized in. So it's something that we had been doing. We built an entire model in and around that next chapter legacy. We used to say, you know, our job is to make you look like a hero on the way out, and we need to look like the hero on the way in to help you and your clients have continuity. So doing that at a thirty seven billion dollar firm is a lot more fun because we have a partnership, a great gym, gold high support of the team. They're phenomenal, and we're working together to build something special.

Yes, so this is what we specialized in. So it's something that we had been doing. We built an entire model in and around that next chapter legacy. We used to say, you know, our job is to make you look like a hero on the way out, and we need to look like the hero on the way in to help you and your clients have continuity. So doing that at a thirty seven billion dollar firm is a lot more fun because we have a partnership, a great gym, gold high support of the team. They're phenomenal, and we're working together to build something special.

So you have all these solo practitioners out there working, many of whom are running five hundred million dollars a billion dollars, how do they deal with the issue of successful succession planning? Clients have to know, Hey, if my.

So you have all these solo practitioners out there working, many of whom are running five hundred million dollars a billion dollars, how do they deal with the issue of successful succession planning? Clients have to know, Hey, if my.

Guy's hit by a bus, I have to be able to access my money.

Guy's hit by a bus, I have to be able to access my money.

It's funny.

It's funny.

I don't think clients asked that question enough because if they did, our industry would probably look at it in a different way. Advisors don't have a very clean cut succession plan, and if they do, they're not super happy with it. So if we look at it, a lot of advisors are looking to go into the next chapter of their career with next gen advisors, and that means you have to do both. Like this event's a perfect example future proof. If you look around, there's so many young advisors that want to be a part of the next chapter of this industry, and you can't have succession without the next chapter of the industry. So if we look at these advisors that are looking for succession, it's really about identifying what's important to them, letting making sure that they know exactly what they're getting into when they when they do the transition, because that's a fear. They want to make sure their clients are well served and continuity continues. So there's so many things to think about.

I don't think clients asked that question enough because if they did, our industry would probably look at it in a different way. Advisors don't have a very clean cut succession plan, and if they do, they're not super happy with it. So if we look at it, a lot of advisors are looking to go into the next chapter of their career with next gen advisors, and that means you have to do both. Like this event's a perfect example future proof. If you look around, there's so many young advisors that want to be a part of the next chapter of this industry, and you can't have succession without the next chapter of the industry. So if we look at these advisors that are looking for succession, it's really about identifying what's important to them, letting making sure that they know exactly what they're getting into when they when they do the transition, because that's a fear. They want to make sure their clients are well served and continuity continues. So there's so many things to think about.

Scott, you know, I think about you know and Barritt. How many times we're talking about whether it's you know, Jamie Domit, JP Morgan Chase or Pick. You know, whether as you know, Bob Eiagrit Disney, you think about it. We talk about that so so much because who is in that top spot really determines the future trajectory of a company. Same thing though with a financial firm, right in terms of who's running it.

Scott, you know, I think about you know and Barritt. How many times we're talking about whether it's you know, Jamie Domit, JP Morgan Chase or Pick. You know, whether as you know, Bob Eiagrit Disney, you think about it. We talk about that so so much because who is in that top spot really determines the future trajectory of a company. Same thing though with a financial firm, right in terms of who's running it.

I thought it was interesting.

I thought it was interesting.

I think about the Bloomberg audience, like, if you are investing with a firm, you want to know what they're thinking because the change at the top can impact how well your investments or how they do as a firm.

I think about the Bloomberg audience, like, if you are investing with a firm, you want to know what they're thinking because the change at the top can impact how well your investments or how they do as a firm.

Yeah, I love I love the wisdom in our industry. I love the fact that there is no age that defines how good someone can be. But at the end of the day, a team approach is a great approach because if I have a demographic that identifies think about how you receive your paperwork. You know, if you're not getting it today with an app or a quick conversation or a fill in the blank versus the old ways where you were getting a pile of paper. You know, the generational shift is important, and it's our job to push. We push our parents in those ways. We push you know, the next generation always needs and then my children push me. So we have to continue to do that in the industry. And I think it's really a great thing for our listeners to think about as far as continuity, how does my plan continue when I move on? And that's what the Legacy Division is. Steward's all about, is helping the advisors create continuity plans that matter for their clients.

Yeah, I love I love the wisdom in our industry. I love the fact that there is no age that defines how good someone can be. But at the end of the day, a team approach is a great approach because if I have a demographic that identifies think about how you receive your paperwork. You know, if you're not getting it today with an app or a quick conversation or a fill in the blank versus the old ways where you were getting a pile of paper. You know, the generational shift is important, and it's our job to push. We push our parents in those ways. We push you know, the next generation always needs and then my children push me. So we have to continue to do that in the industry. And I think it's really a great thing for our listeners to think about as far as continuity, how does my plan continue when I move on? And that's what the Legacy Division is. Steward's all about, is helping the advisors create continuity plans that matter for their clients.

So let's talk dollars and cents.

So let's talk dollars and cents.

Back in the before days when FED rates were zero and rias were thought of as this great, reliable, almost like a preferred stock issue once you had a great yield of seven eight nine percent and equity upside if there was acquisitions, people playing paying some pretty aggressive multiples now that rates are much higher. What do you see in the landscape for acquisition? Is it still ten and fifteen X?

Back in the before days when FED rates were zero and rias were thought of as this great, reliable, almost like a preferred stock issue once you had a great yield of seven eight nine percent and equity upside if there was acquisitions, people playing paying some pretty aggressive multiples now that rates are much higher. What do you see in the landscape for acquisition? Is it still ten and fifteen X?

What does it look like?

What does it look like?

Yeah, you know, you go through this process and you learn very quickly there's a lot of inflated numbers that get thrown around, and they can throw that around and then decrease your EBITA and it still looks really really good, but it's not the same number. So I think the numbers are real. I think you just have to know where you fit in. Are you more of a single practitioner do it? You know, with a billion dollars under management and having that consistent cash flow, that fairly low number of staff members, you're you're gonna do pretty well, but not as well as the enterprises. You know, the five billion dollar firms are very attractive to us. We should talk, but these are the things, these are the things that that are the most we get.

Yeah, you know, you go through this process and you learn very quickly there's a lot of inflated numbers that get thrown around, and they can throw that around and then decrease your EBITA and it still looks really really good, but it's not the same number. So I think the numbers are real. I think you just have to know where you fit in. Are you more of a single practitioner do it? You know, with a billion dollars under management and having that consistent cash flow, that fairly low number of staff members, you're you're gonna do pretty well, but not as well as the enterprises. You know, the five billion dollar firms are very attractive to us. We should talk, but these are the things, these are the things that that are the most we get.

We literally get calls every other really going back for way back when, and I remember having a conversation before we launched this and I'm like, listen, we have this little project I can't tell you about. It's going to affect our evaluation. I can't even talk to you about it. We have a different growth rate, we have a different business model. Every conversation we've ever had has always been like, well, thanks to nice, nice chatting, we'll get back to you. It's like, besides, I am having too much fun.

We literally get calls every other really going back for way back when, and I remember having a conversation before we launched this and I'm like, listen, we have this little project I can't tell you about. It's going to affect our evaluation. I can't even talk to you about it. We have a different growth rate, we have a different business model. Every conversation we've ever had has always been like, well, thanks to nice, nice chatting, we'll get back to you. It's like, besides, I am having too much fun.

Yeah, why I have the I.

Yeah, why I have the I.

Will freely admit I have the best gig in all the finance. I get to work with Carol, I do stuff like this, I sit down in the office. I just had David Rubinstein in my studio for an hour and a half.

Will freely admit I have the best gig in all the finance. I get to work with Carol, I do stuff like this, I sit down in the office. I just had David Rubinstein in my studio for an hour and a half.

Who does that? Yeah, why would I ever want to give that up?

Who does that? Yeah, why would I ever want to give that up?

I don't think you have to. I think the key is and what you have to pay attention to is the life option. What you're talking about is your life is great. How do we maintain that lifestyle? And I think what's different is you'll never get a call from us. I'm not recruiting. We're attracting people because we're focusing on what's important to you in your life. And that's what we're going to focus on in the next chapter. That's what the legacy division is all about. And I think in our industry, you're doing all the right things, all the things you love. What we have to pay attention to is when does that? When does that end? And how can we make sure that it doesn't end in a way that we're not happy with. We want to make sure that that continues even for our clients, and the fun continues.

I don't think you have to. I think the key is and what you have to pay attention to is the life option. What you're talking about is your life is great. How do we maintain that lifestyle? And I think what's different is you'll never get a call from us. I'm not recruiting. We're attracting people because we're focusing on what's important to you in your life. And that's what we're going to focus on in the next chapter. That's what the legacy division is all about. And I think in our industry, you're doing all the right things, all the things you love. What we have to pay attention to is when does that? When does that end? And how can we make sure that it doesn't end in a way that we're not happy with. We want to make sure that that continues even for our clients, and the fun continues.

So let me push this back to you. Your thirty seven billion dollars. I look at shops like Sherylpenny's Dynasty, they're over one hundred billion dollars.

So let me push this back to you. Your thirty seven billion dollars. I look at shops like Sherylpenny's Dynasty, they're over one hundred billion dollars.

Where do you want to go? What are your goals?

Where do you want to go? What are your goals?

Yes, So our company's goals are to continue to grow. I was the first acquisition. So the beautiful thing is we are now acquiring a significantly number, significantly high number of practices and we've entered that space. We're still traditionally growing by recruiting the way that the Smith Barney guys always did, by just attracting great advisors and breakaway advisors. And I see us going from thirty billion to one hundred billion very quickly, and I think as a partnership that's very exciting for every single person that owns shares in this company, and everyone in our company owned shares, from our admin to our marketing teams, to the.

Yes, So our company's goals are to continue to grow. I was the first acquisition. So the beautiful thing is we are now acquiring a significantly number, significantly high number of practices and we've entered that space. We're still traditionally growing by recruiting the way that the Smith Barney guys always did, by just attracting great advisors and breakaway advisors. And I see us going from thirty billion to one hundred billion very quickly, and I think as a partnership that's very exciting for every single person that owns shares in this company, and everyone in our company owned shares, from our admin to our marketing teams, to the.

Advisors, that's that impact culture.

Advisors, that's that impact culture.

I think it impacts culture in a great way because being new to this entity in the last nine months, what I could tell you is the sharing is significant. If you're doing something great, there's no hesitation for you to share it to somebody else because if your practice is doing great and I share it with you, we're now elevating the entire firm's value. And that to me is something special. And I come from the old Edward Jones days where I started, and it was something that having partnership at Edward Jones was something really special. It was being a part of something bigger. Anytime you're a part of something bigger a community, if you will, yeah, you're going to have a really great opportunity with culture.

I think it impacts culture in a great way because being new to this entity in the last nine months, what I could tell you is the sharing is significant. If you're doing something great, there's no hesitation for you to share it to somebody else because if your practice is doing great and I share it with you, we're now elevating the entire firm's value. And that to me is something special. And I come from the old Edward Jones days where I started, and it was something that having partnership at Edward Jones was something really special. It was being a part of something bigger. Anytime you're a part of something bigger a community, if you will, yeah, you're going to have a really great opportunity with culture.

Plus plus, that ownership mindset permeates everything everybody does.

Plus plus, that ownership mindset permeates everything everybody does.

Yeah, it's an ownership mindset, which means you're not overspending in the wrong spaces, you're paying attention to you know, if I want to fly first class, I can upgrade, but it doesn't have to be at the firm's expense. There are things that you think about because you're trying to elevate the value of the firm and not just you.

Yeah, it's an ownership mindset, which means you're not overspending in the wrong spaces, you're paying attention to you know, if I want to fly first class, I can upgrade, but it doesn't have to be at the firm's expense. There are things that you think about because you're trying to elevate the value of the firm and not just you.

Because what you do impacts the value of the firm, the success, but you also get a piece of.

Because what you do impacts the value of the firm, the success, but you also get a piece of.

That so special how much that you have of that, it's very special. I think about a Bloomberg audience who's listening to this conversation.

That so special how much that you have of that, it's very special. I think about a Bloomberg audience who's listening to this conversation.

I have to say, I don't know that I had ever thought about legacy at all of these firms, and it was interesting kind of prepping for this event. So what do you think about the Bloomberg audience investors who are listening to it, what they need to take away and think about.

I have to say, I don't know that I had ever thought about legacy at all of these firms, and it was interesting kind of prepping for this event. So what do you think about the Bloomberg audience investors who are listening to it, what they need to take away and think about.

Well, you know, I'm a build better kind of person, meaning that if I think there's a better way, I want to know it. If I'm a client sitting across from my financial advisor right now, I want to know what they're doing that's innovative if we're only doing the same old thing that we've always done. Now, look, I'm not saying blow up plans. I'm just saying, pay attention to the team, pay attention to demographic, pay attention to the things that they're bringing back. And these are the things that if I'm listening and I'm thinking about this sitting across from my advisor, I'm just paying attention to something as simple as a succession plan. Is it written, is it confirmed, or is it just floating in the air like most groups. And that's something that I think is really important because my financial plan that you continuously tell me to maintain, markets up, markets down, I maintain my plan. I need to know that you're maintaining my plan if you're here or you're not here. And it's very impactful.

Well, you know, I'm a build better kind of person, meaning that if I think there's a better way, I want to know it. If I'm a client sitting across from my financial advisor right now, I want to know what they're doing that's innovative if we're only doing the same old thing that we've always done. Now, look, I'm not saying blow up plans. I'm just saying, pay attention to the team, pay attention to demographic, pay attention to the things that they're bringing back. And these are the things that if I'm listening and I'm thinking about this sitting across from my advisor, I'm just paying attention to something as simple as a succession plan. Is it written, is it confirmed, or is it just floating in the air like most groups. And that's something that I think is really important because my financial plan that you continuously tell me to maintain, markets up, markets down, I maintain my plan. I need to know that you're maintaining my plan if you're here or you're not here. And it's very impactful.

It's so logical, right, it's really.

It's so logical, right, it's really.

Most overlooked aspects of running a business. I can't tell you how many firms this is a giant, gaping hole that they have to respond to. So if someone comes to you and says, look, we're not looking to sell, but we want to learn a little bit more about succession planning and we want to have a conversation.

Most overlooked aspects of running a business. I can't tell you how many firms this is a giant, gaping hole that they have to respond to. So if someone comes to you and says, look, we're not looking to sell, but we want to learn a little bit more about succession planning and we want to have a conversation.

Maybe down the road, we're ready to do this.

Maybe down the road, we're ready to do this.

How do you work with firms like that?

How do you work with firms like that?

I think about thirty seconds.

I think about thirty seconds.

Yeah, I think at the end of the day, it's all about building relationships. So what we're doing is we're building a relationship to learn about your business, learn about what you're trying to accomplish, and how we can help you actually attain that. Most importantly, we understand your story and we help you reach that goal that you're aiming towards, whatever it may.

Yeah, I think at the end of the day, it's all about building relationships. So what we're doing is we're building a relationship to learn about your business, learn about what you're trying to accomplish, and how we can help you actually attain that. Most importantly, we understand your story and we help you reach that goal that you're aiming towards, whatever it may.

Be, Scott, is the trend ten seconds for much more bigger firms or smaller firms, or a little.

Be, Scott, is the trend ten seconds for much more bigger firms or smaller firms, or a little.

Bit of both.

Bit of both.

I think the trend is moving in an upward progression on both.

I think the trend is moving in an upward progression on both.

On both.

On both.

All right, good stuff, Thank you so much, Thank you so much for having me really appreciate it. All right, Scott dan Our, head of the Legacy Division at Steward Partners.

All right, good stuff, Thank you so much, Thank you so much for having me really appreciate it. All right, Scott dan Our, head of the Legacy Division at Steward Partners.

You're listening to the Bloomberg Business Week podcast. Listen live each weekday starting at two pm Eastern on applecar Play and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station Just Say Alexa playing Bloomberg eleven thirty muck a Journal.

You're listening to the Bloomberg Business Week podcast. Listen live each weekday starting at two pm Eastern on applecar Play and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station Just Say Alexa playing Bloomberg eleven thirty muck a Journal.

Can't you let me drive?

Can't you let me drive?

No, no, no, no, honey, please, how do the driving gravels?

No, no, no, no, honey, please, how do the driving gravels?

Let's mate, I want to try it.

Let's mate, I want to try it.

It's a good question.

It's a good question.

This is the Drive to the Clothes dot com for me?

This is the Drive to the Clothes dot com for me?

Well, young Don on Bloomberg Radio.

Well, young Don on Bloomberg Radio.

All right, everybody, about eighteen minutes left in the trading day. It is time for the Drive to the Clothes. I'm Carol Master along with Barry Ridtholts. We are live at future Proof at Huntington Beach, California, and we've got what two days for that FED decision.

All right, everybody, about eighteen minutes left in the trading day. It is time for the Drive to the Clothes. I'm Carol Master along with Barry Ridtholts. We are live at future Proof at Huntington Beach, California, and we've got what two days for that FED decision.

That's right Wednesday, the last day of this event, and I'll be halfway home when they come out and announced, So.

That's right Wednesday, the last day of this event, and I'll be halfway home when they come out and announced, So.

You're gonna get a moment. Have to wait to read about it on the Bloomba.

You're gonna get a moment. Have to wait to read about it on the Bloomba.

No, I'm waiting for Delta Wi Fi. As long as I have Wi Fi on the plane, I'll track it in real time.

No, I'm waiting for Delta Wi Fi. As long as I have Wi Fi on the plane, I'll track it in real time.

That's a really good point, all right. So let's get to our guest, Becau. We're gonna talk a little bit about the trade.

That's a really good point, all right. So let's get to our guest, Becau. We're gonna talk a little bit about the trade.

Menda Rebella's with us managing director ahead of Extracer sales at the d DWS Group, the Global Asset Manager. You might remember, they were formally do to Asset Management. A little bit of a history lesson part of DEUTSA Group until twenty eighteen when ADWS became a separate entity.

Menda Rebella's with us managing director ahead of Extracer sales at the d DWS Group, the Global Asset Manager. You might remember, they were formally do to Asset Management. A little bit of a history lesson part of DEUTSA Group until twenty eighteen when ADWS became a separate entity.

Welcome, Welcome, Thank you very much for having me. How are you. I'm doing really well.

Welcome, Welcome, Thank you very much for having me. How are you. I'm doing really well.

It's hard not to be doing well when the sunshine and you're at the beach in California.

It's hard not to be doing well when the sunshine and you're at the beach in California.

So not the worst setup. To talk about investing in markets exactly.

So not the worst setup. To talk about investing in markets exactly.

Well, it's hard to remain focused, but I think so many stimulating conversations here that are giving us a lot of ideas.

Well, it's hard to remain focused, but I think so many stimulating conversations here that are giving us a lot of ideas.

So what specifically, I am curious you could there's a good mood and I know it's California and I know it's the beach, but you know, it's interesting. It does feel like people are pretty optimistic. How do you see the outlook right now?

So what specifically, I am curious you could there's a good mood and I know it's California and I know it's the beach, but you know, it's interesting. It does feel like people are pretty optimistic. How do you see the outlook right now?

Yeah?

Yeah?

I think you know, we were just talking about everyone waiting in anticipation of Wednesday, and I think that's been a major talking point in all of the breakout sessions that we've had this morning. Everyone's definitely in wait and see mode as we see in the markets, and I think that we've had a lot of, you know, great momentum in the markets over the past couple of years. But the number one thing that my team and I were speaking about to invest the prospects clients is what's your view or your take on your current allocation to the Magnificent seven. It's top of mind for everyone. Everyone is perhaps too long, everyone is very aware of that, but at the same time, there's still this kind of fomo aspect as well. You know, especially after the dips last week, people wondering should they still remain in, should they top up, should they actually rotate a way to non market cap weighted exposures within US equities, should they even diversify to international equities? And especially given our German heritage, we've kind of been a go to for a lot of investors on that site.

I think you know, we were just talking about everyone waiting in anticipation of Wednesday, and I think that's been a major talking point in all of the breakout sessions that we've had this morning. Everyone's definitely in wait and see mode as we see in the markets, and I think that we've had a lot of, you know, great momentum in the markets over the past couple of years. But the number one thing that my team and I were speaking about to invest the prospects clients is what's your view or your take on your current allocation to the Magnificent seven. It's top of mind for everyone. Everyone is perhaps too long, everyone is very aware of that, but at the same time, there's still this kind of fomo aspect as well. You know, especially after the dips last week, people wondering should they still remain in, should they top up, should they actually rotate a way to non market cap weighted exposures within US equities, should they even diversify to international equities? And especially given our German heritage, we've kind of been a go to for a lot of investors on that site.

So what do you make of how the market has behaved since the Magnificent seven has kind of stumbled? You know, a lot of bears said wants the General's trip, THAT'SID, it's all over, And instead it seems like the market is broadening out and there's more participation. That tends to be healthy, doesn't it.

So what do you make of how the market has behaved since the Magnificent seven has kind of stumbled? You know, a lot of bears said wants the General's trip, THAT'SID, it's all over, And instead it seems like the market is broadening out and there's more participation. That tends to be healthy, doesn't it.

Seventy five hundred equal weight hitting a record all time high tech.

Seventy five hundred equal weight hitting a record all time high tech.

Absolutely, we actually have this fund in Europe and we love it. It's been one of the top sellers in our use its range from our side, within the US range, we kind of are thinking more about how can we provide some more sector diversification.

Absolutely, we actually have this fund in Europe and we love it. It's been one of the top sellers in our use its range from our side, within the US range, we kind of are thinking more about how can we provide some more sector diversification.

I think everyone is very long.

I think everyone is very long.

Tech, but like you said, but it's really good to see that at least you're not just in just a few names. Now it's extending kind of along the tail, which is very healthy. You know, it's really funny to see that the ETFs were first launched globally in nineteen ninety and you know, one of the key elements of them was the diversification traits, to have diversification and just one Q support icin and that's very much like coming back. You know, it's ever relevant, which is fantastic. What we're really liking at the moment from that diversification perspective is to still not have you know, too much propensity to just one sector. But obviously there are some sectors which are more important than others. We like the equal weight, but at the end of the day, it's just thinking about the number of names in each sector. So maybe you know, there's a version two point zero that we're trying to work on on our side.

Tech, but like you said, but it's really good to see that at least you're not just in just a few names. Now it's extending kind of along the tail, which is very healthy. You know, it's really funny to see that the ETFs were first launched globally in nineteen ninety and you know, one of the key elements of them was the diversification traits, to have diversification and just one Q support icin and that's very much like coming back. You know, it's ever relevant, which is fantastic. What we're really liking at the moment from that diversification perspective is to still not have you know, too much propensity to just one sector. But obviously there are some sectors which are more important than others. We like the equal weight, but at the end of the day, it's just thinking about the number of names in each sector. So maybe you know, there's a version two point zero that we're trying to work on on our side.

But what we really liked is about.

But what we really liked is about.

Picking the winners within each sector. So we've got our SMPE fund. It's just across its five year mark, its anniversary, and what's really good is that it's sector neutral versus the broad based benchmark. But you're actually picking the winners within each sector based on ESG scores from SMP, the index provider.

Picking the winners within each sector. So we've got our SMPE fund. It's just across its five year mark, its anniversary, and what's really good is that it's sector neutral versus the broad based benchmark. But you're actually picking the winners within each sector based on ESG scores from SMP, the index provider.

People still want esgo.

People still want esgo.

Well, the thing is, you know what, it's still a lot of cynics, and I think that a lot of people have thought, oh, it just equates to environmental but in reality the social component, but more importantly the governance component. This is what stock analysts are looking at anyway.

Well, the thing is, you know what, it's still a lot of cynics, and I think that a lot of people have thought, oh, it just equates to environmental but in reality the social component, but more importantly the governance component. This is what stock analysts are looking at anyway.

So it seems to be more easily to measure exactly.

So it seems to be more easily to measure exactly.

Yeah, there's so much data and everything that we have, so you know, just to encapsulate it in an index is very easy, I think. Frankly, you know, all of us are looking for. The unicorn is always to outperform the S and P five hundred, and actually this fund is doing that. So it's outperformed by about one point five five percent per anum since inception, which is incredible, and it's not been by playing any sectors or anything like that, so that's really positive.

Yeah, there's so much data and everything that we have, so you know, just to encapsulate it in an index is very easy, I think. Frankly, you know, all of us are looking for. The unicorn is always to outperform the S and P five hundred, and actually this fund is doing that. So it's outperformed by about one point five five percent per anum since inception, which is incredible, and it's not been by playing any sectors or anything like that, so that's really positive.

The governance side seems to act as a risk screen to pull out some really bad actors before they start acting badly.

The governance side seems to act as a risk screen to pull out some really bad actors before they start acting badly.

Exactly, absolutely, so it's usually typically a buffer on the downside. But what's been really great to see with this outperformance is that even in the market that has rallied over the last five years, you also captured more upside as well, which is fantastic. So what you end up with is a lower downside capture and then a higher upside capture, which is you know, what we're all striving to do in our industry.

Exactly, absolutely, so it's usually typically a buffer on the downside. But what's been really great to see with this outperformance is that even in the market that has rallied over the last five years, you also captured more upside as well, which is fantastic. So what you end up with is a lower downside capture and then a higher upside capture, which is you know, what we're all striving to do in our industry.

That's how you perform exactly.