Bloomberg Audio Studios, Podcasts, radio news.

Bloomberg Audio Studios, Podcasts, radio news.

This is the Bloomberg Surveillance Podcast. I'm Tom Keene along with Paul Sweeney. Join us each day for insight from the best in economics, finance, investment, and international relations. You can also watch the show live on YouTube. Visit the Bloomberg Podcast channel on YouTube to see the show weekday mornings from seven to ten am Eastern from our global headquarters in New York City. Subscribe to the podcast on Apple, Spotify, or anywhere else you listen and always I'm Bloomberg Radio, the Bloomberg Terminal, and the Bloomberg Business App. A victim out of the Emory University, Julian Emmanuel joins us. Right now, what was it like at Emery in Atlanta? Did you like cut class and go out to braves Ball.

This is the Bloomberg Surveillance Podcast. I'm Tom Keene along with Paul Sweeney. Join us each day for insight from the best in economics, finance, investment, and international relations. You can also watch the show live on YouTube. Visit the Bloomberg Podcast channel on YouTube to see the show weekday mornings from seven to ten am Eastern from our global headquarters in New York City. Subscribe to the podcast on Apple, Spotify, or anywhere else you listen and always I'm Bloomberg Radio, the Bloomberg Terminal, and the Bloomberg Business App. A victim out of the Emory University, Julian Emmanuel joins us. Right now, what was it like at Emery in Atlanta? Did you like cut class and go out to braves Ball.

Well, we certainly went to the old the day now and there were five thousand people in the stands and you could.

Well, we certainly went to the old the day now and there were five thousand people in the stands and you could.

Sit right down, You could sit right.

Sit right down, You could sit right.

Down next to Ted Turner, and.

Down next to Ted Turner, and.

Yeah, wonderful to have you here.

Yeah, wonderful to have you here.

You have the honor, you have the coolest equity job on the planet to hang with Ed Hyman every day at every Core SR is your shop in Ed linking into your work in equities, are you some two percent real GDP forward?

You have the honor, you have the coolest equity job on the planet to hang with Ed Hyman every day at every Core SR is your shop in Ed linking into your work in equities, are you some two percent real GDP forward?

Well, look, so Ed has been on the inflation slowing more than anticipated years and he's on the eventual the economy is going to slow more than anticipated towards the end of the year and into twenty twenty five. And so you know, when you put that all together, the conclusion is pretty obvious with regard to.

Well, look, so Ed has been on the inflation slowing more than anticipated years and he's on the eventual the economy is going to slow more than anticipated towards the end of the year and into twenty twenty five. And so you know, when you put that all together, the conclusion is pretty obvious with regard to.

What okay, economics dam phenomenal GDP? Why do stocks go up if the economy's slower.

What okay, economics dam phenomenal GDP? Why do stocks go up if the economy's slower.

So there are a lot of moving parts at this point point, and the first is that there's lots and lots of liquidity out there, and no surprise to anyone, whether it's Corporate America throwing off as you sort of reference, you know, huge amounts of free cash flow. Obviously we know where that's centered, whether it's you know, households really flush with cash still. And frankly, there's this idea that the Fed will not necessarily when and the degree to which they're going to cut although we certainly heard this morning that the story get reiterated, but that they're actually going to do the right thing. So if inflation stays sticky for a number of more months. They'll be patient. If the economy starts to turn down, they will be less patient. Mistakes will not be made. Roll that all into the enthusiasm around AI and the potential for what we've seen as high multiple regimes can stay elevated, and you have a market that continues to rally.

So there are a lot of moving parts at this point point, and the first is that there's lots and lots of liquidity out there, and no surprise to anyone, whether it's Corporate America throwing off as you sort of reference, you know, huge amounts of free cash flow. Obviously we know where that's centered, whether it's you know, households really flush with cash still. And frankly, there's this idea that the Fed will not necessarily when and the degree to which they're going to cut although we certainly heard this morning that the story get reiterated, but that they're actually going to do the right thing. So if inflation stays sticky for a number of more months. They'll be patient. If the economy starts to turn down, they will be less patient. Mistakes will not be made. Roll that all into the enthusiasm around AI and the potential for what we've seen as high multiple regimes can stay elevated, and you have a market that continues to rally.

Paul, you got to Lisa does such a good job with that. You know, data check the Bloomberg Business Flash Tesla two oh nine, make it two ten is up nine dollars to nineteen.

Paul, you got to Lisa does such a good job with that. You know, data check the Bloomberg Business Flash Tesla two oh nine, make it two ten is up nine dollars to nineteen.

There you go.

There you go.

Okay, very good friend's tesla Lisa.

Okay, very good friend's tesla Lisa.

Here's some nice round numbers for you, Tom, mister Manuel here he raised his year end twenty four s and P five hundred price target to six thousand from forty seven fifty and maybe saying seven thousand by year end twenty twenty five. Those are numbers you can sink your teeth into. What's driving that.

Here's some nice round numbers for you, Tom, mister Manuel here he raised his year end twenty four s and P five hundred price target to six thousand from forty seven fifty and maybe saying seven thousand by year end twenty twenty five. Those are numbers you can sink your teeth into. What's driving that.

At So so, really, what this was is some introspection on our parts, because it's very difficult to sort of set aside the valuation discipline because when you look at the long sweep of history, you know, buying low and you know, perhaps trimming high has been a pretty robust strategy to complement buy and hold. But what we found, and we have been proponents of AI underpinning the broader equity market for well over a year, I think we were pretty early to that party. We think it's still very early on in this theme is that these high valuation regimes can persist, and valuation alone is not a reason to sell stocks.

At So so, really, what this was is some introspection on our parts, because it's very difficult to sort of set aside the valuation discipline because when you look at the long sweep of history, you know, buying low and you know, perhaps trimming high has been a pretty robust strategy to complement buy and hold. But what we found, and we have been proponents of AI underpinning the broader equity market for well over a year, I think we were pretty early to that party. We think it's still very early on in this theme is that these high valuation regimes can persist, and valuation alone is not a reason to sell stocks.

And when we look at.

And when we look at.

The barbells right, the probability of recession the economy deteriorating, you know, materially in the near term, we don't see it. And then the probability of a bubble inflating, we certainly don't see.

The barbells right, the probability of recession the economy deteriorating, you know, materially in the near term, we don't see it. And then the probability of a bubble inflating, we certainly don't see.

At this point. We're a long way from that.

At this point. We're a long way from that.

How much of those of that significant I'm talking to twenty five percent increase in your twenty four price target. You don't see the ell on the street today. You see other banks raising at bout two hundred, you know, just slightly three or four or five percent. How much of that was earnings? How much of that was expectation of FED cutting, what was kind of the driver's.

How much of those of that significant I'm talking to twenty five percent increase in your twenty four price target. You don't see the ell on the street today. You see other banks raising at bout two hundred, you know, just slightly three or four or five percent. How much of that was earnings? How much of that was expectation of FED cutting, what was kind of the driver's.

He was really a mix of all of it. Okay, again, I go back to what I said earlier. Our confidence is whatever the right thing to do the FED is likely going to do the right thing.

He was really a mix of all of it. Okay, again, I go back to what I said earlier. Our confidence is whatever the right thing to do the FED is likely going to do the right thing.

And that explains why we.

And that explains why we.

Started the year at six and a half cuts priced in and came down to here where it basically we're at one and a half and stocks have not faltered materially during that time. We increased our earnings with the idea that even if a downturn hits later this year or early next, you still are in a robust cycle.

Started the year at six and a half cuts priced in and came down to here where it basically we're at one and a half and stocks have not faltered materially during that time. We increased our earnings with the idea that even if a downturn hits later this year or early next, you still are in a robust cycle.

So to your people in everqure Isi, sector by sector, you're the over strategists and that when you look at the big tech companies, is the risk of revenue shortfall?

So to your people in everqure Isi, sector by sector, you're the over strategists and that when you look at the big tech companies, is the risk of revenue shortfall?

Is that really the sweat.

Is that really the sweat.

Out there about the magnificent seven maintaining the excellence of thirty multiples?

Out there about the magnificent seven maintaining the excellence of thirty multiples?

Well, so you hit the nail on the head on this tom. If we've been having this conversation four or five years ago, the idea that a large kept technology stock could persistently trade at thirty times would have been foolish, foolish.

Well, so you hit the nail on the head on this tom. If we've been having this conversation four or five years ago, the idea that a large kept technology stock could persistently trade at thirty times would have been foolish, foolish.

Why is it now not? This is critical.

Why is it now not? This is critical.

Essentially because there's a view and we share it that the way the economy is developing, the way technology is developing, is that you're going to have you know, revenue underpinnings. In the other part of that is, if you think about it right, you go back to late twenty twenty two when several of the Magnificent Seven basically disclosed that yes, they could in fact cut costs because they were stockpiling labor. The fact is is that corporate America has been getting ready for a recession that fortunately hasn't arrived yet for a year and a half, almost two years.

Essentially because there's a view and we share it that the way the economy is developing, the way technology is developing, is that you're going to have you know, revenue underpinnings. In the other part of that is, if you think about it right, you go back to late twenty twenty two when several of the Magnificent Seven basically disclosed that yes, they could in fact cut costs because they were stockpiling labor. The fact is is that corporate America has been getting ready for a recession that fortunately hasn't arrived yet for a year and a half, almost two years.

So, Julian, I mean, Tom and I are still trying to wrap our heads around AI.

So, Julian, I mean, Tom and I are still trying to wrap our heads around AI.

What is it?

What is it?

I guess we start there, what is it? But anyway, how do we get exposure to it? Do we just buy Nvidia? How are you talking to your clients about AI? And maybe how to get exposure to it over time?

I guess we start there, what is it? But anyway, how do we get exposure to it? Do we just buy Nvidia? How are you talking to your clients about AI? And maybe how to get exposure to it over time?

So what we think is important because again, look, it's very difficult to buy stocks that have moved several hundred percent psychologically if you don't have a core position. You know, we think you should have a core position in those kinds of stocks. But when you look at it right, there is a number of companies that are proactively building competitive motes, both on the cost reduction side, which we all know that that will be part of the story as jobs transform, but also importantly on the customer interaction, retention, loyalty side. And these types of companies are very upfront about talking about it in they're quarterly earnings calls. And that's probably the most important thing that we as investors can do is listen to what they say about AI on the earnings calls. Those are the companies that you want to be thinking about.

So what we think is important because again, look, it's very difficult to buy stocks that have moved several hundred percent psychologically if you don't have a core position. You know, we think you should have a core position in those kinds of stocks. But when you look at it right, there is a number of companies that are proactively building competitive motes, both on the cost reduction side, which we all know that that will be part of the story as jobs transform, but also importantly on the customer interaction, retention, loyalty side. And these types of companies are very upfront about talking about it in they're quarterly earnings calls. And that's probably the most important thing that we as investors can do is listen to what they say about AI on the earnings calls. Those are the companies that you want to be thinking about.

What's so important?

What's so important?

You're Julian and this goes back to the great work of Ed your Denny and I'm calling this bull market that your Denny at Kompora Bullmarket.

You're Julian and this goes back to the great work of Ed your Denny and I'm calling this bull market that your Denny at Kompora Bullmarket.

Edheimen will know who both those people are.

Edheimen will know who both those people are.

But the answer is this goes back to the optimism to participate in the market. Allah, what CJ. Lawrence did years ago and what you do it? Evercore and Evercore Isi is well, I want you to speak to people under the siren call. Barry Ridolts has been on fire on this, the siren call of trying to time the market. Please you want to add on, you gotta play if you want to win.

But the answer is this goes back to the optimism to participate in the market. Allah, what CJ. Lawrence did years ago and what you do it? Evercore and Evercore Isi is well, I want you to speak to people under the siren call. Barry Ridolts has been on fire on this, the siren call of trying to time the market. Please you want to add on, you gotta play if you want to win.

My ninety three year old father in law recently departed, lived a great life basically was in stocks until the end as much is in stocks as he could possibly because he believed that when you look at it and the data supports this, through economic cycles, through you know, political turmoil, through geopolitics, wars, all of these things that stocks are the long term income producing asset, and frankly, when you think about the things that we're trying to hedge inflation.

My ninety three year old father in law recently departed, lived a great life basically was in stocks until the end as much is in stocks as he could possibly because he believed that when you look at it and the data supports this, through economic cycles, through you know, political turmoil, through geopolitics, wars, all of these things that stocks are the long term income producing asset, and frankly, when you think about the things that we're trying to hedge inflation.

Again some of these uncertainties.

Again some of these uncertainties.

The other fact is is that if you look at it, the price chart of the S and P five hundred mirrors the growth in earnings. And if you're going to get long term earnings growth, which we do believe and fundamentally, you must be in stocks.

The other fact is is that if you look at it, the price chart of the S and P five hundred mirrors the growth in earnings. And if you're going to get long term earnings growth, which we do believe and fundamentally, you must be in stocks.

Can you a year before?

Can you a year before?

I would like probably quit, But I mean the surveillance casket folks, is I bet can you see me doing this show?

I would like probably quit, But I mean the surveillance casket folks, is I bet can you see me doing this show?

Oh?

Oh?

Yes, yes, I absolutely, no questions, exactly, no problem there, one hundred.

Yes, yes, I absolutely, no questions, exactly, no problem there, one hundred.

So Julian, all.

So Julian, all.

Right, do I have to be I mean, tech has led this market for twenty five years? You have to be in tech, don't you?

Right, do I have to be I mean, tech has led this market for twenty five years? You have to be in tech, don't you?

You do?

You do?

You have to I mean, and it's almost like you throw out the valuation. I hate to say that, but how else do you play it?

You have to I mean, and it's almost like you throw out the valuation. I hate to say that, but how else do you play it?

So we talked about this earlier. There will come a time. That time is not now when trimming a position in technology and communication services, which are the only two sectors out performing the S and P five hundred this year. And you would think that on balance, that would be a negative statement about the market. It is not looking out on a twelve month basis.

So we talked about this earlier. There will come a time. That time is not now when trimming a position in technology and communication services, which are the only two sectors out performing the S and P five hundred this year. And you would think that on balance, that would be a negative statement about the market. It is not looking out on a twelve month basis.

We just got some hedge fund results and you know, they're like like Sentinel, seems like they're getting it done. And there's others as well, and you know, I mean, the Mets are playing better, soer point seven to two.

We just got some hedge fund results and you know, they're like like Sentinel, seems like they're getting it done. And there's others as well, and you know, I mean, the Mets are playing better, soer point seven to two.

Must be doing okay.

Must be doing okay.

And the answer, Julian is these are fee base a point two points.

And the answer, Julian is these are fee base a point two points.

Two and twenty whatever the math is. I'm looking at a blended fund skewed to high tech. I'm gonna leave the name out of it.

Two and twenty whatever the math is. I'm looking at a blended fund skewed to high tech. I'm gonna leave the name out of it.

And their fee is zero point three three percent running billions of dollars. I mean, I'm sorry. The fees add up, don't they? To your equity return, particularly when dividends are reinvested.

And their fee is zero point three three percent running billions of dollars. I mean, I'm sorry. The fees add up, don't they? To your equity return, particularly when dividends are reinvested.

They do.

They do.

Look Jack Bogel's entire career was built on that concept, Tom founding Vanguard, and fees do add up.

Look Jack Bogel's entire career was built on that concept, Tom founding Vanguard, and fees do add up.

But what I would say about.

But what I would say about.

That is, again, there are times in our lives when diversifying away from stocks in a portfolio where stocks are the bedrock actually allows you to buy more stock into weakness, and frankly, a hedge fund that does well in all weathers of market. There are certainly a number of them out there.

That is, again, there are times in our lives when diversifying away from stocks in a portfolio where stocks are the bedrock actually allows you to buy more stock into weakness, and frankly, a hedge fund that does well in all weathers of market. There are certainly a number of them out there.

You know.

You know.

That's part of a prudently built portfolio as well, and there are a number of managers that have justified decades of that kind of fee structure.

That's part of a prudently built portfolio as well, and there are a number of managers that have justified decades of that kind of fee structure.

What is your quantitative strategy team telling you.

What is your quantitative strategy team telling you.

So interestingly enough, and if you think about it, this is going to make sense. The last week we've certainly seen, let's say politely, a good deal more political volatility, and when you think about how the second half of the year is likely to get underway, what we found is that the valuation factor buying cheaper relatively stocks amongst sectors versus being the more expensive stocks actually hasn't worked. And that's not just a large cap tech concept. This is across all sectors. Our view is that when you think about in committing more capital stocks right now, you're probably going to be more inclined to be more valuation sensitive, considering that there's more political risk out there than normal.

So interestingly enough, and if you think about it, this is going to make sense. The last week we've certainly seen, let's say politely, a good deal more political volatility, and when you think about how the second half of the year is likely to get underway, what we found is that the valuation factor buying cheaper relatively stocks amongst sectors versus being the more expensive stocks actually hasn't worked. And that's not just a large cap tech concept. This is across all sectors. Our view is that when you think about in committing more capital stocks right now, you're probably going to be more inclined to be more valuation sensitive, considering that there's more political risk out there than normal.

Julian, thank you so much. This has been great.

Julian, thank you so much. This has been great.

Please really really appreciated.

Please really really appreciated.

We need no translation on the debate and the fractious constructive debate at Morgan Stanley that, among others, Stephen Roach invented it is a different house. Joining us now for this half hour. Jim carron Cio, Cross Asset Solutions, Senior Officer, argument at Morgan Stanley.

We need no translation on the debate and the fractious constructive debate at Morgan Stanley that, among others, Stephen Roach invented it is a different house. Joining us now for this half hour. Jim carron Cio, Cross Asset Solutions, Senior Officer, argument at Morgan Stanley.

What is the distinction?

What is the distinction?

What is the number one point of debate at your shop?

What is the number one point of debate at your shop?

I think what it is and by the way, I think what it really is is the question of when will the unemployment rates start to rise fast enough to give the Fed confidence in order to cut interest rates? Right, Because where the debate is today is there are various forms of inflation that are out there. Right, You've got the supercore which is running too hot. You've got core CPI, which has made a lot of progress. You've got core PCE, which is kind of like in the sweet spot. And the FED would go on that. But the question, though, is, with those three data points somewhat conflicting, where does the FED have confidence to actually go. Now we think that maybe the Fed will cut interest rates, it'll start in September, but what's required for that to happen is for the unemployment rate to actually start to show some progress higher. And why that's important is because the declining trend in inflation, and it is declining, will be viewed by the FED as sustainable and anchored decline in inflation. If the unemployment rate rises, which would then put pressure downwards on wages, wage inflation slowing should create a more stable inflation environment. So it's really a question about jobs creation, and it's a question about the path and pace at which inflation falls.

I think what it is and by the way, I think what it really is is the question of when will the unemployment rates start to rise fast enough to give the Fed confidence in order to cut interest rates? Right, Because where the debate is today is there are various forms of inflation that are out there. Right, You've got the supercore which is running too hot. You've got core CPI, which has made a lot of progress. You've got core PCE, which is kind of like in the sweet spot. And the FED would go on that. But the question, though, is, with those three data points somewhat conflicting, where does the FED have confidence to actually go. Now we think that maybe the Fed will cut interest rates, it'll start in September, but what's required for that to happen is for the unemployment rate to actually start to show some progress higher. And why that's important is because the declining trend in inflation, and it is declining, will be viewed by the FED as sustainable and anchored decline in inflation. If the unemployment rate rises, which would then put pressure downwards on wages, wage inflation slowing should create a more stable inflation environment. So it's really a question about jobs creation, and it's a question about the path and pace at which inflation falls.

That's interesting because again, I think most folks we talk to just say the Fed's focused on inflation, the focus on inflation and focused, but really it's labor component of inflation, which is key here. Is there a kind of a range and number of inflation that you think the FED will kick them into saying okay, we've got some movement here. Is at four point two percent? Is a four and a half percent?

That's interesting because again, I think most folks we talk to just say the Fed's focused on inflation, the focus on inflation and focused, but really it's labor component of inflation, which is key here. Is there a kind of a range and number of inflation that you think the FED will kick them into saying okay, we've got some movement here. Is at four point two percent? Is a four and a half percent?

Yeah, so that's the output, right, So that's like I would almost think of that as the residual, ok right, I wouldn't really think of that as as as the appsolue. I mean yes, I mean ultimately it will come down to that number, and it's easiest way to understand it. But the FED invented something called the super core for inflation, and this is corehousing X services. This is really a measure of inflation that's focused on more of the labor intensive segments of the economy. So you're barber, you know a janitor, you know somebody who's labor intensive in terms. So basically it's really a way of measuring inflation that is being contributed by wages. So you know that number right now is still running pretty high at four point eight percent, but it is but it is likely to decline. So I would say that that to me is I would I would think of that as as really the measure that the Fed's going to watch. If that starts to come down, the natural output of that, or the residual of that, will be that the unemployment rate should start to move up towards four point two four point three. So I mean, if I simplified it, yeah, I'd say that, you know, around four point three four point two, I think the FED would feel comfortable.

Yeah, so that's the output, right, So that's like I would almost think of that as the residual, ok right, I wouldn't really think of that as as as the appsolue. I mean yes, I mean ultimately it will come down to that number, and it's easiest way to understand it. But the FED invented something called the super core for inflation, and this is corehousing X services. This is really a measure of inflation that's focused on more of the labor intensive segments of the economy. So you're barber, you know a janitor, you know somebody who's labor intensive in terms. So basically it's really a way of measuring inflation that is being contributed by wages. So you know that number right now is still running pretty high at four point eight percent, but it is but it is likely to decline. So I would say that that to me is I would I would think of that as as really the measure that the Fed's going to watch. If that starts to come down, the natural output of that, or the residual of that, will be that the unemployment rate should start to move up towards four point two four point three. So I mean, if I simplified it, yeah, I'd say that, you know, around four point three four point two, I think the FED would feel comfortable.

In your process at universe, does sixty forty work or is there a sixty forty amendment to not so much a enhance return goose return.

In your process at universe, does sixty forty work or is there a sixty forty amendment to not so much a enhance return goose return.

But to avoid challenges?

But to avoid challenges?

What's the Karen sixty forty.

What's the Karen sixty forty.

Yeah, no, that's a great question, and it's going to be debated for a long time. But so it's not that the sixty forty doesn't work. It's just I think that the sixty forty will be suboptimal. And the reason why the sixty forty portfolio will be suboptimals we have to take a little bit of a trip through history. If you go back to nineteen eighty one to twenty twenty one, if you look at that forty year period of time, bonds did very well during that period. Thirty seven out of forty years, they made money so very stable, very good returns. Your sharp ratio or your risk adjusted return if you had a sixty forty portfolio was roughly seven percent, which is great, you know, passive investing sixty You know, sixty forty did really well for that forty year period of time. If you look from twenty twenty two, twenty three and into twenty four, what you're seeing is that bonds are becoming less stable, less reliably you know, producing good, solid returns, and that's likely.

Yeah, no, that's a great question, and it's going to be debated for a long time. But so it's not that the sixty forty doesn't work. It's just I think that the sixty forty will be suboptimal. And the reason why the sixty forty portfolio will be suboptimals we have to take a little bit of a trip through history. If you go back to nineteen eighty one to twenty twenty one, if you look at that forty year period of time, bonds did very well during that period. Thirty seven out of forty years, they made money so very stable, very good returns. Your sharp ratio or your risk adjusted return if you had a sixty forty portfolio was roughly seven percent, which is great, you know, passive investing sixty You know, sixty forty did really well for that forty year period of time. If you look from twenty twenty two, twenty three and into twenty four, what you're seeing is that bonds are becoming less stable, less reliably you know, producing good, solid returns, and that's likely.

To occur into the future.

To occur into the future.

So what it would suggest is that now the sixty forty might not give you passive might not give you seven percent, but it might actually only give you five, and that's a meaningful difference in types of return. So I would say that the new way of thinking about how do we use bonds to hedge our portfolio needs to be a lot more flexible. So it could be seventy thirty, it could be thirty seventy in some instances. Really, what we're trying to account for is the volatility of returns in bonds, which we think will start to follow the business cycle more than just being a forty year downward trending rates and strong performance for that period of time. So we have to account for the variability in bonds going forward to make the adjustments in terms of the allocation sixty forty. So it's not as simple as a passive I would say that. And you might even want to add alternative investments into the equation too.

So what it would suggest is that now the sixty forty might not give you passive might not give you seven percent, but it might actually only give you five, and that's a meaningful difference in types of return. So I would say that the new way of thinking about how do we use bonds to hedge our portfolio needs to be a lot more flexible. So it could be seventy thirty, it could be thirty seventy in some instances. Really, what we're trying to account for is the volatility of returns in bonds, which we think will start to follow the business cycle more than just being a forty year downward trending rates and strong performance for that period of time. So we have to account for the variability in bonds going forward to make the adjustments in terms of the allocation sixty forty. So it's not as simple as a passive I would say that. And you might even want to add alternative investments into the equation too.

Well, I mean, I'm.

Well, I mean, I'm.

Telling you because what it does is it creates a diversification element that is attracting returns.

Telling you because what it does is it creates a diversification element that is attracting returns.

Jim Carreen, Cross Assets Solution, CIO, Morgan Stanley Investment Management. Hey Jim, At least in Tom, they've both been in the Magnificent seven stocks they're just laughing all the way to the bank. I unfortunately have not What do you tell equity investors to do? Who is it okay just to belong these Magnificent seven or do we actually have to do some homework?

Jim Carreen, Cross Assets Solution, CIO, Morgan Stanley Investment Management. Hey Jim, At least in Tom, they've both been in the Magnificent seven stocks they're just laughing all the way to the bank. I unfortunately have not What do you tell equity investors to do? Who is it okay just to belong these Magnificent seven or do we actually have to do some homework?

Well, you know, Look, I mean the way I think about this is follow the money. The Magnificent seven or the Magnificent ten or whatever it is.

Well, you know, Look, I mean the way I think about this is follow the money. The Magnificent seven or the Magnificent ten or whatever it is.

They're doing well because.

They're doing well because.

Their earnings and their earnings revisions have been exceptionally strong. If you look at the S and P four ninety, so if you x out those seven or ten stocks, if you look at the earnings revisions in that category, it's been pretty close to flat.

Their earnings and their earnings revisions have been exceptionally strong. If you look at the S and P four ninety, so if you x out those seven or ten stocks, if you look at the earnings revisions in that category, it's been pretty close to flat.

It's been relatively dismal.

It's been relatively dismal.

So so it's not that the broadening or the broader sectors of the market are these great opportunities that are just minting cash and earnings are going up. I think the market's rightfully so looking at it. So if you look at the if you look at the equity market, the SMP five hundred x the Magnificent seven, it's up about seven percent year to date, which is pretty good.

So so it's not that the broadening or the broader sectors of the market are these great opportunities that are just minting cash and earnings are going up. I think the market's rightfully so looking at it. So if you look at the if you look at the equity market, the SMP five hundred x the Magnificent seven, it's up about seven percent year to date, which is pretty good.

I mean, that's not bad.

I mean, that's not bad.

If you look at the SP five hundred total with the magnificent seven in it. Then it's up, you know, closer to fifteen percent.

If you look at the SP five hundred total with the magnificent seven in it. Then it's up, you know, closer to fifteen percent.

Year to date. So you know, it's really a question of following the money.

Year to date. So you know, it's really a question of following the money.

So I would have to say that the way that I would look at this is that you still want to look at the cap weighted SMP five hundred. I want to incorporate that overweight to those, you know, to those bigger stocks, because that's really what's capturing the earnings, that's what's driving the markets mostly right now, I think it's too early to say that we're going to have this cyclical recovery, that that everything's going to start to move higher, and therefore you can broaden out to the other four ninety with a lot of confidence. That's really not been the case for the last year plus, and I don't think that that's changing anytime soon because a big broad cyclical acceleration and recovery is not in our it's not our base case.

So I would have to say that the way that I would look at this is that you still want to look at the cap weighted SMP five hundred. I want to incorporate that overweight to those, you know, to those bigger stocks, because that's really what's capturing the earnings, that's what's driving the markets mostly right now, I think it's too early to say that we're going to have this cyclical recovery, that that everything's going to start to move higher, and therefore you can broaden out to the other four ninety with a lot of confidence. That's really not been the case for the last year plus, and I don't think that that's changing anytime soon because a big broad cyclical acceleration and recovery is not in our it's not our base case.

How about evaluation here, I have earnings kept up with this move we've seen off that I guess October twenty three kind of level here.

How about evaluation here, I have earnings kept up with this move we've seen off that I guess October twenty three kind of level here.

Yeah, I mean, look, I mean, you know, you mentioned in Vidia earlier, you know, and Jess, but but in Vidia is a thirty pe stock. You know, it's not like I mean, yeah, is that high. Sure it's high, but it's not a but it's not something that is astronomically high. A lot of the companies that are doing well are actually making money. So people make parallels back to the year twenty nineteen ninety nine, the dot com bubble. Back then, these companies weren't making money. Today, these big companies that are doing well are actually making a lot of money.

Yeah, I mean, look, I mean, you know, you mentioned in Vidia earlier, you know, and Jess, but but in Vidia is a thirty pe stock. You know, it's not like I mean, yeah, is that high. Sure it's high, but it's not a but it's not something that is astronomically high. A lot of the companies that are doing well are actually making money. So people make parallels back to the year twenty nineteen ninety nine, the dot com bubble. Back then, these companies weren't making money. Today, these big companies that are doing well are actually making a lot of money.

Their ears are there to justify. So it's a big difference.

Their ears are there to justify. So it's a big difference.

Oh, I want to talk here about free cash. So I've been reading Michael Mobis and I've been going back the credit spec he's now Morgan Stanley. Do you guys talk Karen and Mobison talking talk about NERD Patrol.

Oh, I want to talk here about free cash. So I've been reading Michael Mobis and I've been going back the credit spec he's now Morgan Stanley. Do you guys talk Karen and Mobison talking talk about NERD Patrol.

I invest with them.

I invest with them.

I mean, like, you know, I mean yeah, so so so absolutely. I mean he's one of the smartest people in the room. I mean, there's no question. So look, I think some of the factors that we look at to think about how we become let's say, defensive or smart about approaching this market.

I mean, like, you know, I mean yeah, so so so absolutely. I mean he's one of the smartest people in the room. I mean, there's no question. So look, I think some of the factors that we look at to think about how we become let's say, defensive or smart about approaching this market.

There's a couple factors.

There's a couple factors.

You know, size is going to matter, right, So the large cap companies are doing better than small They have better balance sheets, good strong balance sheets, free cash flow yield. So Mobison, you know, would be all over that earnings for share growth and interest rate coverage.

You know, size is going to matter, right, So the large cap companies are doing better than small They have better balance sheets, good strong balance sheets, free cash flow yield. So Mobison, you know, would be all over that earnings for share growth and interest rate coverage.

Okay, so I want to go delta t on, you go aerospace engineering, right, and Jim you can literally go log log. You can throw a log on the axis here. I'm going to suggest that this era is where the terminal value is less important, and some form of waiting of quarter by quarter or year by year free cash flow excellence is getting us to these valuations. We've moved away from a classic seven year DCF.

Okay, so I want to go delta t on, you go aerospace engineering, right, and Jim you can literally go log log. You can throw a log on the axis here. I'm going to suggest that this era is where the terminal value is less important, and some form of waiting of quarter by quarter or year by year free cash flow excellence is getting us to these valuations. We've moved away from a classic seven year DCF.

Do you agree? Yeah? Yeah.

Do you agree? Yeah? Yeah.

So so the way that I would phrase I totally hear you. So. So the way that I would phrase.

So so the way that I would phrase I totally hear you. So. So the way that I would phrase.

That is that when you look at companies that don't have a lot of earnings, but you project a terminal value into the future and say, well, I can look past no earnings for a period of time because a terminal value is high, then that's you know, that error I think is that's not where we are.

That is that when you look at companies that don't have a lot of earnings, but you project a terminal value into the future and say, well, I can look past no earnings for a period of time because a terminal value is high, then that's you know, that error I think is that's not where we are.

What about the magnificent seven?

What about the magnificent seven?

I mean Microsoft, let's just pick it is as Bomber did pretty well.

I mean Microsoft, let's just pick it is as Bomber did pretty well.

You see that Microsoft, to me is not a seven year.

You see that Microsoft, to me is not a seven year.

Where's that? Where are they going to be? But it's a quarter to quarter slog of excellence?

Where's that? Where are they going to be? But it's a quarter to quarter slog of excellence?

Right?

Right?

Well, well, well let's turned into that.

Well, well, well let's turned into that.

So so I'd say that the terminal value for a lot of these, you know, the magnificent seven. People debate as to how high it could actually possibly be, but it's a positive number, and it's a tangible positive number because they're making their earnings. The issue, though, is because they're valuations. And I think this gets to your point, Tom, because their valuations are relatively high and there's high expectations that they had better make their quarterly numbers, and if they don't, they're subject to a correction. And that's what makes the market relatively scary right now, is because you have such a narrow group of stocks that are really keeping up the index. If they miss a quarter, and if prices adjust in one of those stocks, it could have a meaningful impact on the overall index, and this could add to volatility in the markets.

So so I'd say that the terminal value for a lot of these, you know, the magnificent seven. People debate as to how high it could actually possibly be, but it's a positive number, and it's a tangible positive number because they're making their earnings. The issue, though, is because they're valuations. And I think this gets to your point, Tom, because their valuations are relatively high and there's high expectations that they had better make their quarterly numbers, and if they don't, they're subject to a correction. And that's what makes the market relatively scary right now, is because you have such a narrow group of stocks that are really keeping up the index. If they miss a quarter, and if prices adjust in one of those stocks, it could have a meaningful impact on the overall index, and this could add to volatility in the markets.

By the way, probably the best notes we get from any you know guest is this guy.

By the way, probably the best notes we get from any you know guest is this guy.

I mean, he started Semanski.

I mean, he started Semanski.

If you got through serismands Semanski physics and.

If you got through serismands Semanski physics and.

You survive one thing jumps at me though, and I got to ask bunch equities, Yeah, this will be the only time this week I think we talked about French equities.

You survive one thing jumps at me though, and I got to ask bunch equities, Yeah, this will be the only time this week I think we talked about French equities.

Yeah, what's going on there.

Yeah, what's going on there.

With the political minds?

With the political minds?

So look, I mean, you know, this is an outlier view on our portfolios, and when this political unrest took place, you know, we saw this as a buying opportunity, primarily in the equity space. And the reason is is I think that there was an overreaction in the markets to what happened in the French election. So yes, the National Rally Party Marine Lepenz party may take over the lower House of Congress and might have a majority state and I respect that it creates some you know, disruption in the political norms within France. But the reaction we had in the market, if you look at the spreads between French bonds and buns that spread, winding, widening over a one week period, rivaled the twenty eleven twenty twelve period when the European Union was in question.

So look, I mean, you know, this is an outlier view on our portfolios, and when this political unrest took place, you know, we saw this as a buying opportunity, primarily in the equity space. And the reason is is I think that there was an overreaction in the markets to what happened in the French election. So yes, the National Rally Party Marine Lepenz party may take over the lower House of Congress and might have a majority state and I respect that it creates some you know, disruption in the political norms within France. But the reaction we had in the market, if you look at the spreads between French bonds and buns that spread, winding, widening over a one week period, rivaled the twenty eleven twenty twelve period when the European Union was in question.

You know, in the first.

You know, in the first.

Place, the equities fell to levels in terms of a standard deviation move back to you'd have to go back to twenty seventeen to see some of these moves. So the extreme amount of move that took place over this I just thought was just overdone. And if you look at French equities year to date, they're about flat.

Place, the equities fell to levels in terms of a standard deviation move back to you'd have to go back to twenty seventeen to see some of these moves. So the extreme amount of move that took place over this I just thought was just overdone. And if you look at French equities year to date, they're about flat.

On the year. You know, they were negative on the year.

On the year. You know, they were negative on the year.

And if you look at the rest of the equity markets across Europe, they're up about seven eight percent. You know, us this is so far being contained just to France, and I think that and also to a narrow set of French companies. The broader French market, I still think it is in good shape. And we saw this as an opportunity to buy good quality assets on the cheap.

And if you look at the rest of the equity markets across Europe, they're up about seven eight percent. You know, us this is so far being contained just to France, and I think that and also to a narrow set of French companies. The broader French market, I still think it is in good shape. And we saw this as an opportunity to buy good quality assets on the cheap.

Jim Kurt, this has been enjoyed.

Jim Kurt, this has been enjoyed.

The joining US now always tan and rested from Brown University. Wendy Schiller, Her books are definitive driving the Taubin Center at Brown Forward. Wendy, I gotta ask about the size of money in the donor culture than our modern politics. Did JFK or LBJ or Frankly Clinton or you know, Bush the younger bring in this kind of money the President Biden's bringing in well, I.

The joining US now always tan and rested from Brown University. Wendy Schiller, Her books are definitive driving the Taubin Center at Brown Forward. Wendy, I gotta ask about the size of money in the donor culture than our modern politics. Did JFK or LBJ or Frankly Clinton or you know, Bush the younger bring in this kind of money the President Biden's bringing in well, I.

Mean they didn't bring in the kind of money that we see today because they weren't legally allowed to, you know, have that kind of money contributed. You know, the rise of super packs, as you know, and super super packs make it possible for wealthy people to contribute hundreds of millions of dollars, and that just didn't exist back then.

Mean they didn't bring in the kind of money that we see today because they weren't legally allowed to, you know, have that kind of money contributed. You know, the rise of super packs, as you know, and super super packs make it possible for wealthy people to contribute hundreds of millions of dollars, and that just didn't exist back then.

But as you well.

But as you well.

Know, Tom, because you know your history, you know, there were other ways of coercive for gathering votes in those days.

Know, Tom, because you know your history, you know, there were other ways of coercive for gathering votes in those days.

It didn't require that much money.

It didn't require that much money.

But in Rhode Island in the eighteen nineties, you know, Nelson Aldrich was a signer from Ronal and he was also the sort of de factive majority leader in the Center Republican.

But in Rhode Island in the eighteen nineties, you know, Nelson Aldrich was a signer from Ronal and he was also the sort of de factive majority leader in the Center Republican.

He handled all the business stuff and all the trade. He would have his lieutenant's pay people five dollars or ten dollars, a lot of money in those days.

He handled all the business stuff and all the trade. He would have his lieutenant's pay people five dollars or ten dollars, a lot of money in those days.

You show up to vote, there's one hundred one hundred million dollars out there. Somebody raised it over three cups of coffee whatever. That's in a bank account, right, Whose money is that?

You show up to vote, there's one hundred one hundred million dollars out there. Somebody raised it over three cups of coffee whatever. That's in a bank account, right, Whose money is that?

I mean, it's really really wealthy people contribute a ton of money. But the question is really in this election, I'm going into your field now, is this really a good investment? Because voters know these two candidates really really well. Money matters the most when one candidate is not as well known. You get a lot of bang for the buck from money and visibility. But here what is the money buying? Particularly in Donald Trump's case, because Republicans don't have the kind of infrastructure that the.

I mean, it's really really wealthy people contribute a ton of money. But the question is really in this election, I'm going into your field now, is this really a good investment? Because voters know these two candidates really really well. Money matters the most when one candidate is not as well known. You get a lot of bang for the buck from money and visibility. But here what is the money buying? Particularly in Donald Trump's case, because Republicans don't have the kind of infrastructure that the.

Democrats have to get out the vote.

Democrats have to get out the vote.

They have strong enthusiasm and stronger loyalty, but they don't have the operational advantage on the ground. What are they ringing for? That's my question?

They have strong enthusiasm and stronger loyalty, but they don't have the operational advantage on the ground. What are they ringing for? That's my question?

What do they need? What do they need the money?

What do they need? What do they need the money?

If they don't spend this pall, where is the money in five years?

If they don't spend this pall, where is the money in five years?

Oh, that's a great ques Christmas plub account exactly.

Oh, that's a great ques Christmas plub account exactly.

But no.

But no.

But they've also changed the rules so it's a little dodgy.

But they've also changed the rules so it's a little dodgy.

But state party committees, for example, can now receive money from federal party committees. They used to, but Congress passed the law that lets them share that money.

But state party committees, for example, can now receive money from federal party committees. They used to, but Congress passed the law that lets them share that money.

So it's it's much easier to meld the money than it used to be.

So it's it's much easier to meld the money than it used to be.

Wendy, what did you make of President Biden's commentary last night? His speech last night in reaction to the Trump immunity ruling.

Wendy, what did you make of President Biden's commentary last night? His speech last night in reaction to the Trump immunity ruling.

It was much more coherent than his first twenty.

It was much more coherent than his first twenty.

Minutes of his big performance, which was a good thing if you're a President Biden's team. So the immunity decision, if you think about what the Framers wrote about what they worried about the presidency, it actually hues pretty closely to that text.

Minutes of his big performance, which was a good thing if you're a President Biden's team. So the immunity decision, if you think about what the Framers wrote about what they worried about the presidency, it actually hues pretty closely to that text.

In other words, I think they probably did the best they could with this immunity decision. People may disagree with.

In other words, I think they probably did the best they could with this immunity decision. People may disagree with.

Me, but if you look at what the founders worried about, this is what they were trying to parse out, you know, individual corruption versus sort of abuse of power, but the prospect of Donald Trump unfettered with complete.

Me, but if you look at what the founders worried about, this is what they were trying to parse out, you know, individual corruption versus sort of abuse of power, but the prospect of Donald Trump unfettered with complete.

Immunity, and that's the way the media is sort of portraying this.

Immunity, and that's the way the media is sort of portraying this.

I think it might shift some of those independents that fled, perhaps on Thursday night, back into considering, you know, maybe we have to pick Biden not Trump, because we are concerned about having Donald Trump in office with the perception in his mind of no holds bar that he can do whatever he wants and he will go unpunished.

I think it might shift some of those independents that fled, perhaps on Thursday night, back into considering, you know, maybe we have to pick Biden not Trump, because we are concerned about having Donald Trump in office with the perception in his mind of no holds bar that he can do whatever he wants and he will go unpunished.

What's the status of the leadership in the Democratic Party today as it relates to President Biden and his viability.

What's the status of the leadership in the Democratic Party today as it relates to President Biden and his viability.

Well, Paul, that.

Well, Paul, that.

Would require identifying the leadership of the Democratic Party and This has been the whole conundrum for the Democrats. The President of the United States is typically the leader of the party, so this is really this and Biden has not really delegated in that respect. You know, Chuck Shimmer does this thing again, Jeffries does his thing. But really, if there's not even a Nancy Pelosi, whether you like her or you don't like her, she was a vocal leader in the party.

Would require identifying the leadership of the Democratic Party and This has been the whole conundrum for the Democrats. The President of the United States is typically the leader of the party, so this is really this and Biden has not really delegated in that respect. You know, Chuck Shimmer does this thing again, Jeffries does his thing. But really, if there's not even a Nancy Pelosi, whether you like her or you don't like her, she was a vocal leader in the party.

You know, it's unclear to me whether it's.

You know, it's unclear to me whether it's.

Barack Obama, it's form President Bill Clinton, who can talk to Biden about whether he steps aside. But right now, as a last night, he did not look like anybody who was walking.

Barack Obama, it's form President Bill Clinton, who can talk to Biden about whether he steps aside. But right now, as a last night, he did not look like anybody who was walking.

Out the door. So what should President Biden's strategy be going forward in this campaign?

Out the door. So what should President Biden's strategy be going forward in this campaign?

Whatever he did to prepare for his remarks yesterday, do that every day. Make sure that when you were going before the public, you sound and look vibrant. But also Trump Trump, Trump, and the issues that the Democrats are better on, particularly labor rights. You know, they have not talked enough about what our Republican trifecta.

Whatever he did to prepare for his remarks yesterday, do that every day. Make sure that when you were going before the public, you sound and look vibrant. But also Trump Trump, Trump, and the issues that the Democrats are better on, particularly labor rights. You know, they have not talked enough about what our Republican trifecta.

Will do to labor rights.

Will do to labor rights.

And I think these are the key voters in the swing states, at least the fade West and Nevada for President of Biden's campaign.

And I think these are the key voters in the swing states, at least the fade West and Nevada for President of Biden's campaign.

Professor Schuler of Providence for Rhode Island, explain to our national audience and our global audience, who the former governor of Rhode Island is some percolate. Henrietta Tre's mentioned this the other day, Gina Romundo on the list out there?

Professor Schuler of Providence for Rhode Island, explain to our national audience and our global audience, who the former governor of Rhode Island is some percolate. Henrietta Tre's mentioned this the other day, Gina Romundo on the list out there?

Who is she?

Who is she?

Jenia Mundo is a practical politician. She is business friendly and she it really solves things problem by problem she does. I know people might get upset. Remind me a little bit of President Obama. You know, she is not wedded to a particular ideology. She takes things as they come and tries to plan ahead and really take stands right. So that's the way she thinks. That's great for governing. Is it great for inspiring voters? That's a question mark in a presidential campaign.

Jenia Mundo is a practical politician. She is business friendly and she it really solves things problem by problem she does. I know people might get upset. Remind me a little bit of President Obama. You know, she is not wedded to a particular ideology. She takes things as they come and tries to plan ahead and really take stands right. So that's the way she thinks. That's great for governing. Is it great for inspiring voters? That's a question mark in a presidential campaign.

Can she appeal to the left of the Democratic Party? Can she check the boxes if President Biden has to.

Can she appeal to the left of the Democratic Party? Can she check the boxes if President Biden has to.

Check every day her record?

Check every day her record?

You know, public unions in Lorelan still don't like her because of union of pension reform. But on things like women's freedom of choice, abortion, gun control, education, she's a very strong record as governor of Rhode Island. So you know, it depends what she pitches. But if you ask me to choose between Gina Romundo and Gretchen Whitmer, that's not a contest, right. Gretchen Whitmer can win Michigan. She seems reluctant to get into the fray, but she can bring a swing state. That's something Genemndeau has yet to prove. So if you're going to switch gears now, you know, I don't see where you picked U over Gresha wimmer.

You know, public unions in Lorelan still don't like her because of union of pension reform. But on things like women's freedom of choice, abortion, gun control, education, she's a very strong record as governor of Rhode Island. So you know, it depends what she pitches. But if you ask me to choose between Gina Romundo and Gretchen Whitmer, that's not a contest, right. Gretchen Whitmer can win Michigan. She seems reluctant to get into the fray, but she can bring a swing state. That's something Genemndeau has yet to prove. So if you're going to switch gears now, you know, I don't see where you picked U over Gresha wimmer.

Cure's valuable ess A sure, thank you, Lisa, What do you have?

Cure's valuable ess A sure, thank you, Lisa, What do you have?

All right? This is what we talked about before you mentioned it. Paul Barry Dillar is back. Yes, he led Paramount Pictures decades ago. He lost the bidding war for the company. Now he's considering making an offer for control of its parent company.

All right? This is what we talked about before you mentioned it. Paul Barry Dillar is back. Yes, he led Paramount Pictures decades ago. He lost the bidding war for the company. Now he's considering making an offer for control of its parent company.

Though.

Though.

This is what the New York Times is reporting, sources telling them that Dylan of digital media company IAC, he signed a non disclosure agreement with National Amusements. But you know, Paramount iac National Musements they have not commented on this, but this is the word that is going out. I mean, Paramoun's been weighing HISS options for months, you know, that.

This is what the New York Times is reporting, sources telling them that Dylan of digital media company IAC, he signed a non disclosure agreement with National Amusements. But you know, Paramount iac National Musements they have not commented on this, but this is the word that is going out. I mean, Paramoun's been weighing HISS options for months, you know, that.

Yeah.

Yeah.

I mean Barry Dillar, He's done everything there is to do in media, including creating a little television network called the Fox Network thanks to Bart Simpson. But that was the eighties, that was the nineties. Again, in my opinion, as much as Admira Barry Diller, he has not a credible bidder. There has not been one credible bidder for Paramount this entire process, and that's shocking and said, but it just reflects kind of where we are in this evolution of the media business.

I mean Barry Dillar, He's done everything there is to do in media, including creating a little television network called the Fox Network thanks to Bart Simpson. But that was the eighties, that was the nineties. Again, in my opinion, as much as Admira Barry Diller, he has not a credible bidder. There has not been one credible bidder for Paramount this entire process, and that's shocking and said, but it just reflects kind of where we are in this evolution of the media business.

It's a general statement.

It's a general statement.

Do you are experts like Rich Greenfield, Michael Nathanson, do they assume somebody's gonna buy this and split break it up?

Do you are experts like Rich Greenfield, Michael Nathanson, do they assume somebody's gonna buy this and split break it up?

You know, I'm not sure. I think a lot of people the real value here of Paramount is in the studio. I mean, the Paramount Film and Television studio is one of just three or four of that scale in the business. So that has value. How much value, I don't know. And how much value to put on the library, the cable networks that are part of Viacom to think about you know, MTV, Country Music, Television TENA and all those things. Either the value is declining every single day as cord cutting continues, so it's a real tough to value this asset.

You know, I'm not sure. I think a lot of people the real value here of Paramount is in the studio. I mean, the Paramount Film and Television studio is one of just three or four of that scale in the business. So that has value. How much value, I don't know. And how much value to put on the library, the cable networks that are part of Viacom to think about you know, MTV, Country Music, Television TENA and all those things. Either the value is declining every single day as cord cutting continues, so it's a real tough to value this asset.

And I saw Warner Brothers Discovery I having the challenge to it yesterday afternoon.

And I saw Warner Brothers Discovery I having the challenge to it yesterday afternoon.

Next Lison, all.

Next Lison, all.

Right, we go from Powermount to Imagine Entertainment. That's Ron Howard, Brian Grazer's company. They're looking for a buyer. This is according to the Wall Street Journal. They're working with an investment bank after receiving some interest, but a deal that could allow Imagine's main financial backer, who is Rain Group, to kind of exit. But there's been a lot going on Hollywood studio streamers. They're pulling back on the number of projects they take on. There was this big boom and spending, so valuations for independent production companies while they're starting to fall over the years. But it's not time the first time they explore a sale. If in twenty twenty two, Imagine talked about selling a more than seventy percent stake in the company to a London based investment firm for about six hundred million to eight hundred million dollars. So that kind of puts a price range out there. But this possibly could happen.

Right, we go from Powermount to Imagine Entertainment. That's Ron Howard, Brian Grazer's company. They're looking for a buyer. This is according to the Wall Street Journal. They're working with an investment bank after receiving some interest, but a deal that could allow Imagine's main financial backer, who is Rain Group, to kind of exit. But there's been a lot going on Hollywood studio streamers. They're pulling back on the number of projects they take on. There was this big boom and spending, so valuations for independent production companies while they're starting to fall over the years. But it's not time the first time they explore a sale. If in twenty twenty two, Imagine talked about selling a more than seventy percent stake in the company to a London based investment firm for about six hundred million to eight hundred million dollars. So that kind of puts a price range out there. But this possibly could happen.

Yes, I mean this is I mean they have a quality, huge quality of library here. But you know they're kind of probably coming to the end of their high output years. If you talked to Ron Howard and Brian Grazer, so let's like a music musician, Tom would sell their catalog, and we're seeing a lot of that these days. This is a little bit along those lines here.

Yes, I mean this is I mean they have a quality, huge quality of library here. But you know they're kind of probably coming to the end of their high output years. If you talked to Ron Howard and Brian Grazer, so let's like a music musician, Tom would sell their catalog, and we're seeing a lot of that these days. This is a little bit along those lines here.

Somebody will buy Oh.

Somebody will buy Oh.

That's a good comparison.

That's a good comparison.

But they have a few things. I mean, they have a series.

But they have a few things. I mean, they have a series.

For networks coming out.

For networks coming out.

Help we go next.

Help we go next.

We've heard of shrink flation. We've talked about that, but now more retailers using upflation to get Americans to buy Okay. Upflation is when you find a new use for an old product and then you charge more for it. Okay, So this is being used. This is a great big take article. You have to take a look at it.

We've heard of shrink flation. We've talked about that, but now more retailers using upflation to get Americans to buy Okay. Upflation is when you find a new use for an old product and then you charge more for it. Okay, So this is being used. This is a great big take article. You have to take a look at it.

On the terminal.

On the terminal.

Here's an example Procter and Gamble. They're charging fourteen dollars for this all over body deodorant, which is double the cost of a standard stick. So they're saying people, people are falling for it. Yes, the problem to consumer They're getting tired of shrink flation, right, so they started doing different things. You went to cheaper alternatives, you start to buy fewer essential items. But now Procter and Gamble actually found that revenue growth came from people buying fewer things at higher prices. So they're willing to pay more if they buy less of a few other things.

Here's an example Procter and Gamble. They're charging fourteen dollars for this all over body deodorant, which is double the cost of a standard stick. So they're saying people, people are falling for it. Yes, the problem to consumer They're getting tired of shrink flation, right, so they started doing different things. You went to cheaper alternatives, you start to buy fewer essential items. But now Procter and Gamble actually found that revenue growth came from people buying fewer things at higher prices. So they're willing to pay more if they buy less of a few other things.

It used to be easy. The rich kids in the neighborhood they had Irish.

It used to be easy. The rich kids in the neighborhood they had Irish.

Spring, right, and the rest of us said, you know, I can't remember what BILLI was used to just does soap. They have Irish spring three houses away.

Spring, right, and the rest of us said, you know, I can't remember what BILLI was used to just does soap. They have Irish spring three houses away.

You could smell at three houses.

You could smell at three houses.

That's a tough smell.

That's a tough smell.

Okay.

Okay.

At the same time, fast food chains, we've been talking about this. They've been lowering prices to attract customers. So now we have another entry into the value meal wars. It is Sonic. Yes, Sonic says that unlike McDonald's, Burger King, Taco Bell, who are doing these temporary value meals, Sonic is saying their meal value is here to stay for good. Okay. They're calling it a fun ninety nine menu, So you have burgers, snacks, desserts, crunch wraps. They are a dollar ninety nine just for tom Okay.

At the same time, fast food chains, we've been talking about this. They've been lowering prices to attract customers. So now we have another entry into the value meal wars. It is Sonic. Yes, Sonic says that unlike McDonald's, Burger King, Taco Bell, who are doing these temporary value meals, Sonic is saying their meal value is here to stay for good. Okay. They're calling it a fun ninety nine menu, So you have burgers, snacks, desserts, crunch wraps. They are a dollar ninety nine just for tom Okay.

The dollar ninety nine menu will also introduce two new items at bacon ranch, Caso rap and a Southwest Crunch Caso wrap. He's gonna pull up in the Bentley at in the Hampton's like.

The dollar ninety nine menu will also introduce two new items at bacon ranch, Caso rap and a Southwest Crunch Caso wrap. He's gonna pull up in the Bentley at in the Hampton's like.

Like they have tots for a dollar. How many touts do you get?

Like they have tots for a dollar. How many touts do you get?

It doesn't say which size it is. You can get a shake too, They have those, like twelve different flavors of shakes, Like.

It doesn't say which size it is. You can get a shake too, They have those, like twelve different flavors of shakes, Like.

How big is a.

How big is a.

Twelve or the sixteen into a sonic?

Twelve or the sixteen into a sonic?

I went when they first started opening, but I haven't been.

I went when they first started opening, but I haven't been.

I mean it's nice.

I mean it's nice.

You drive, you drive up right, No, you pull in and they the people come out to your car that used to do it on roller skates. I don't know they still do anymore.

You drive, you drive up right, No, you pull in and they the people come out to your car that used to do it on roller skates. I don't know they still do anymore.

They roller a job.

They roller a job.

A while.

A while.

Can you see.

Can you see.

The servers come on the really anything else?

The servers come on the really anything else?

No, but that's it.

No, but that's it.

You mentioned butter, Yes, I mean, but butter is up.

You mentioned butter, Yes, I mean, but butter is up.

It's up, they're saying because more they're focused more on cheese, and that's.

It's up, they're saying because more they're focused more on cheese, and that's.