Global business news twenty four hours a day at Bloomberg dot com, the radio, plus Globile lap and on your radio. This is a Bloomberg Business Flag BOM Bloomberg World Handquarters. I'm Charlie Pellett, SMP five hundred Index on track for a losing day, in fact, heading towards the longest weekly losing streak in four months amid lackluster results from large retailers, a topic we were just discussing nords from shares. They are now down by fourteen point three percent. The SMP downs seventeen of the cline of eight tenths of one percent down industrials close to the worst level of the day, down one d eighty one points. The drop there of one percent and has stack down nineteen a drop of point four percent. Gold up three dollars, the ounce to twelve seventy four, a gain of two tenths of one percent. Your tenure of fourteen thirty seconds, the yield there one point seven oh percent. I'm Charlie Pellett, and that's a Bloomberg Business Flash. Charlie Pellett, thanks so very much. Don't know but the E E t F Report brought to you by Van ECK vectors e t F s expect more from your muni's target tax exempt income by maturity and credit quality, all with low cost e t s. Visit vaneck dot com slash Muni Vanek access the opportunities for this. Now we turn to Bloomberg's Confine Cotterie Smart Beta has come to the fixed income e t F market. Index i Q has introduced to e t S based on a momentum investing approach to fixed income markets to really take some pain out of investors portfolios and let some sleep at night not having to retilt their portfolios every time the Fed makes a move or a dozen. That's Adam Patty, index i q's chief executive. Patty explains the strategy behind the i Q Enhanced Core Bond U S e TS. We take the investable M bond segments, whether it's governments, corporates, and the mortgage backs in the Enhanced and we use a momentum factor to tilt between those different asset classes to allow investors really to get more from their core investment. Patty says their second new e t F, the i Q Enhanced Core Plus Bond U S a t F as U S higled debt in the mix along with a dollar denominated debt of emerging market issuers. Both e t F s have an expense ratio of thirty four basis points. They trade under the symbols A G G E and A G G P. That's your Bloomberg ETF report. I'm Catherine Cowderie. All Right, the sun it's going down just a little bit here in Bermuda. We are broadcasting live from Elbow Beach, Bermuda, an ocean front Enclavo classic style and contemporary luxury. Our next guest is very jealous that we are near the water because Michael Obohofsky, the founder of Merlin Asset Management based in Boston. He's a competitive sailor in addition to the fact that he probably has a good good qualification for understanding the psychology of investors, because dr Obohovsky knows a lot about psychiatry. He was going to be a doctor at one point, and he earned his PhD in clinical psychology from the New School for Social Research. Michael Okhovski, thanks for being with us. Great to be with your Did I capture all of that that I that I was able to put enough forward for you? To be a little bit sort of jealous about our proximity to the water. Well, it's it's very generous description of my background, but I am definitely jealous of you, of you being in Bermuer now, although I am I am actually in Newport, Rhode Island, so very close to the water. Also, oh all right, well then it's been very good. All right, So success follows success. Um, it's how how can people be successful using this Merlin large cap growth strategy in order to perhaps eventually enjoy all of these good things? Well, I think I think what it helps. It helps to focus on the fundamental characteristics of the companies, and also it helps to cut through through the incredible noise that we have been experienced in the markets. I think, you know, this is the end of the week where many of the large retailers we reported pretty pretty horrific numbers, and and I think everybody is questioning whether the consumers are dead, whether retailers are dead. I think the consumers do not appear to be dead. They are still spending, but they are spending differently, which might very well bring bring very unwelcome news to retailers, malls and sort of related businesses. The the world is changing and you have to be on your touse. You have to pay attention to what you're investing in, and it's um and as I mentioned, it is very difficult to keep focused on fundamentals, good characteristics of companies that are still out there, that are growing at the at the good pace and building their businesses despite the slow economy. Well, your strategy very in a very basic sense, is you select in one of your funds the fifty most attractive large cat growth firms, regardless of industry or sector. Uh, you've got a three to five year outlook, use a comprehensive multi variant approach, bottom up, topdown, contivacative evaluation, et cetera. Up Right, now, do you have any big retailers in any of your various funds or did you say handwrittings on the wall department store chiefs are becoming dinosaurs, Kathy, It's a great question. Retail retail business has been very, very tough, and I see the primary reason for the retail business being being difficult as Amazon. That Amazon is really just stealing their business. And when you think about it, it's only represents about Amazon only represents about seven percent of the of the retail business right now, and it's already destroying companies like we're like we have heard reporting this week. However, it is possible to find the good retailers, but what I would call them those are the retailers that haven't been Amazon yet are very difficult for Amazon to to capture, so I so I own some of them. They are the example is Michael Stores uh and other examples are are those um off price retailers like for example T TJ Max, which I also owned for my clients. And also the the building business. The home building has been doing well, so I own laws and also on HDS which is a spinoff from Home Home Depot that is focused on on professionals, so they It is possible to look look into retail and actually find good companies, but it has been very, very difficult and really eliminates the majority of the sort of traditional retail eage. Michael, what kind of time horizon do you recommend that investors take when they deploy this kind of strategy. Well, I look at the companies when I choose them for the portfolios, I look at about three to five years, so it's you know, five years, it's probably questionable whether you can really do it at such such period of time. But I think one to three years, and one year is probably two little, so I would say three years. It's sort of the average what you should be looking at. And uh, it's a on. All my strategies are fairly low turnover strategies. The annualized turnover is about so once they select the stuff, they tend to stay in the portfolios for a fairly long period of time. How you how you look at the come neat Apple? Now? You know, in some sense you get so big, you get sure. They had the big deal, right that a billion dollar investment, indeed the largest It's like the Uber of China. Right, Um, this deal led by Tim Cook really an interesting story. But I remember Microsoft was just nobody like Microsoft? Right Microsoft? See old and stodgy things. You're change to Microsoft. A lot of people like that stock. Now, how do you feel about companies like that and this this big mature text space. Well, I have to tell you the the A few years ago I was talking to San Francisco to some of the scene at people about liking Microsoft, and they were looking at me like I had a third eye in the middle of my forehead and I could see at that time, I could see changes happening to Microsoft, and it took a few years for for numbers to sort of show what they've been doing. So it's um it's an interesting question. They are they are. There's a benefit to large technology companies benefit or experience and what they are able to do, but they have to be able to change, and we have been seeing some of those those old style tech companies changing. Microsoft as a perfect example. Cisco is another example of a company that is completely reinventing itself. Oracle might be another one moving into the cloud. Apple Apple has been a really frustrating company. I think a few years ago there was a question, well was Apple really all about Steve? And they had a deep bench, there were a lot of people working with Steve, and at least so far, I have to say that the answer is that it was really all Steve. I have not been impressed with Tim Cook. I've always said that he was a very good CEO, but I don't see him as a good leader of the company. I think the design is also lacking. They haven't developed anything beyond what was Steep set them to do. So it's a company that has still great potential. I think they have. They just up there are and the budget to about ten billion dollars or something better come out of it. But right now was driven by single product Keeno. More than six of our avenues are based on an iPhone, and there was nothing else and there's still nothing else on the horizon. At the same time, Apple generates more cash than most of the technology companies combined, so they it is very inexpensive. They are questions about the growth. The company is still well well managed, isn't going to return to growth? Those are the questions that I'm struggling with. And I still own Apple, but I would call it I still own Apple, rather than I believe that I will own Apple for a long period to come. Fascinating. Thank you so much for joining us. And next time we come to Berne to maybe you'll get your sailboat and race down. Okay, you're very much great talking to Kathy and Fim. That's Dr Michael Obohovsky. He's a founder Merlin Asset Management based in Boston. On you heard him. He's the Newport Rhode Island. Today. A lot of people on this Friday afternoon are on the beach on anybody else is on quite a night speech as uspn Elbow Beach Elbows Elo Beach Resort, I'm calfing haze along with pin Fox ticking stock on Bloomberg Radio

Global business news twenty four hours a day at Bloomberg dot com, the radio, plus Globile lap and on your radio. This is a Bloomberg Business Flag BOM Bloomberg World Handquarters. I'm Charlie Pellett, SMP five hundred Index on track for a losing day, in fact, heading towards the longest weekly losing streak in four months amid lackluster results from large retailers, a topic we were just discussing nords from shares. They are now down by fourteen point three percent. The SMP downs seventeen of the cline of eight tenths of one percent down industrials close to the worst level of the day, down one d eighty one points. The drop there of one percent and has stack down nineteen a drop of point four percent. Gold up three dollars, the ounce to twelve seventy four, a gain of two tenths of one percent. Your tenure of fourteen thirty seconds, the yield there one point seven oh percent. I'm Charlie Pellett, and that's a Bloomberg Business Flash. Charlie Pellett, thanks so very much. Don't know but the E E t F Report brought to you by Van ECK vectors e t F s expect more from your muni's target tax exempt income by maturity and credit quality, all with low cost e t s. Visit vaneck dot com slash Muni Vanek access the opportunities for this. Now we turn to Bloomberg's Confine Cotterie Smart Beta has come to the fixed income e t F market. Index i Q has introduced to e t S based on a momentum investing approach to fixed income markets to really take some pain out of investors portfolios and let some sleep at night not having to retilt their portfolios every time the Fed makes a move or a dozen. That's Adam Patty, index i q's chief executive. Patty explains the strategy behind the i Q Enhanced Core Bond U S e TS. We take the investable M bond segments, whether it's governments, corporates, and the mortgage backs in the Enhanced and we use a momentum factor to tilt between those different asset classes to allow investors really to get more from their core investment. Patty says their second new e t F, the i Q Enhanced Core Plus Bond U S a t F as U S higled debt in the mix along with a dollar denominated debt of emerging market issuers. Both e t F s have an expense ratio of thirty four basis points. They trade under the symbols A G G E and A G G P. That's your Bloomberg ETF report. I'm Catherine Cowderie. All Right, the sun it's going down just a little bit here in Bermuda. We are broadcasting live from Elbow Beach, Bermuda, an ocean front Enclavo classic style and contemporary luxury. Our next guest is very jealous that we are near the water because Michael Obohofsky, the founder of Merlin Asset Management based in Boston. He's a competitive sailor in addition to the fact that he probably has a good good qualification for understanding the psychology of investors, because dr Obohovsky knows a lot about psychiatry. He was going to be a doctor at one point, and he earned his PhD in clinical psychology from the New School for Social Research. Michael Okhovski, thanks for being with us. Great to be with your Did I capture all of that that I that I was able to put enough forward for you? To be a little bit sort of jealous about our proximity to the water. Well, it's it's very generous description of my background, but I am definitely jealous of you, of you being in Bermuer now, although I am I am actually in Newport, Rhode Island, so very close to the water. Also, oh all right, well then it's been very good. All right, So success follows success. Um, it's how how can people be successful using this Merlin large cap growth strategy in order to perhaps eventually enjoy all of these good things? Well, I think I think what it helps. It helps to focus on the fundamental characteristics of the companies, and also it helps to cut through through the incredible noise that we have been experienced in the markets. I think, you know, this is the end of the week where many of the large retailers we reported pretty pretty horrific numbers, and and I think everybody is questioning whether the consumers are dead, whether retailers are dead. I think the consumers do not appear to be dead. They are still spending, but they are spending differently, which might very well bring bring very unwelcome news to retailers, malls and sort of related businesses. The the world is changing and you have to be on your touse. You have to pay attention to what you're investing in, and it's um and as I mentioned, it is very difficult to keep focused on fundamentals, good characteristics of companies that are still out there, that are growing at the at the good pace and building their businesses despite the slow economy. Well, your strategy very in a very basic sense, is you select in one of your funds the fifty most attractive large cat growth firms, regardless of industry or sector. Uh, you've got a three to five year outlook, use a comprehensive multi variant approach, bottom up, topdown, contivacative evaluation, et cetera. Up Right, now, do you have any big retailers in any of your various funds or did you say handwrittings on the wall department store chiefs are becoming dinosaurs, Kathy, It's a great question. Retail retail business has been very, very tough, and I see the primary reason for the retail business being being difficult as Amazon. That Amazon is really just stealing their business. And when you think about it, it's only represents about Amazon only represents about seven percent of the of the retail business right now, and it's already destroying companies like we're like we have heard reporting this week. However, it is possible to find the good retailers, but what I would call them those are the retailers that haven't been Amazon yet are very difficult for Amazon to to capture, so I so I own some of them. They are the example is Michael Stores uh and other examples are are those um off price retailers like for example T TJ Max, which I also owned for my clients. And also the the building business. The home building has been doing well, so I own laws and also on HDS which is a spinoff from Home Home Depot that is focused on on professionals, so they It is possible to look look into retail and actually find good companies, but it has been very, very difficult and really eliminates the majority of the sort of traditional retail eage. Michael, what kind of time horizon do you recommend that investors take when they deploy this kind of strategy. Well, I look at the companies when I choose them for the portfolios, I look at about three to five years, so it's you know, five years, it's probably questionable whether you can really do it at such such period of time. But I think one to three years, and one year is probably two little, so I would say three years. It's sort of the average what you should be looking at. And uh, it's a on. All my strategies are fairly low turnover strategies. The annualized turnover is about so once they select the stuff, they tend to stay in the portfolios for a fairly long period of time. How you how you look at the come neat Apple? Now? You know, in some sense you get so big, you get sure. They had the big deal, right that a billion dollar investment, indeed the largest It's like the Uber of China. Right, Um, this deal led by Tim Cook really an interesting story. But I remember Microsoft was just nobody like Microsoft? Right Microsoft? See old and stodgy things. You're change to Microsoft. A lot of people like that stock. Now, how do you feel about companies like that and this this big mature text space. Well, I have to tell you the the A few years ago I was talking to San Francisco to some of the scene at people about liking Microsoft, and they were looking at me like I had a third eye in the middle of my forehead and I could see at that time, I could see changes happening to Microsoft, and it took a few years for for numbers to sort of show what they've been doing. So it's um it's an interesting question. They are they are. There's a benefit to large technology companies benefit or experience and what they are able to do, but they have to be able to change, and we have been seeing some of those those old style tech companies changing. Microsoft as a perfect example. Cisco is another example of a company that is completely reinventing itself. Oracle might be another one moving into the cloud. Apple Apple has been a really frustrating company. I think a few years ago there was a question, well was Apple really all about Steve? And they had a deep bench, there were a lot of people working with Steve, and at least so far, I have to say that the answer is that it was really all Steve. I have not been impressed with Tim Cook. I've always said that he was a very good CEO, but I don't see him as a good leader of the company. I think the design is also lacking. They haven't developed anything beyond what was Steep set them to do. So it's a company that has still great potential. I think they have. They just up there are and the budget to about ten billion dollars or something better come out of it. But right now was driven by single product Keeno. More than six of our avenues are based on an iPhone, and there was nothing else and there's still nothing else on the horizon. At the same time, Apple generates more cash than most of the technology companies combined, so they it is very inexpensive. They are questions about the growth. The company is still well well managed, isn't going to return to growth? Those are the questions that I'm struggling with. And I still own Apple, but I would call it I still own Apple, rather than I believe that I will own Apple for a long period to come. Fascinating. Thank you so much for joining us. And next time we come to Berne to maybe you'll get your sailboat and race down. Okay, you're very much great talking to Kathy and Fim. That's Dr Michael Obohovsky. He's a founder Merlin Asset Management based in Boston. On you heard him. He's the Newport Rhode Island. Today. A lot of people on this Friday afternoon are on the beach on anybody else is on quite a night speech as uspn Elbow Beach Elbows Elo Beach Resort, I'm calfing haze along with pin Fox ticking stock on Bloomberg Radio