Biden Orders Huge Release of Oil Reserves

Bloomberg Business Weekend iTunes, SoundCloud, or Bloomberg dot Com. You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio or watch us on YouTube search Bloomberg clovel News. All right, we are watching the energy markets. Of course, we just heard from President Biden UH pushing the oil release, saying in his planned to release a million barrels of oil a day from US

reserves as for the six for six months. It's really massive and aggressive, laying a foundation for the country to achieve independence from foreign energy suppliers. This is our new world order. As for w t I crude right now pretty much hovering near loads of the session, down about uh six and a quarter percent, down almost seven bucks. So let's get to it with our guest Julia Fanzeris is oil markets reporter for Bloomberg New She's with us

right now in the Bloomberg Interactive Broker's studio. Julia a journalist asking President Biden how quickly and how much is this going to lower prices at the pump? The President didn't really have a clear answer for that. Of course, it's market based, but based on your research, based on your reporting, uh, how much is it going to affect

prices at the pump? Right? And it was a good question, because it's going to take at least three weeks for any crude future price to reach to the pump, and so taking that into consideration, you have to realize that there, as you mentioned other aspects going into this. It's also we're going into summer driving season, and that in itself is ratcheting up demand. And so even with these higher crude amounts, they're still going to be high demand and

that's going to be the real problem. So, yes, it probably will lower gas prices for a little bit, but traders and all of my sources are saying this is just a short term band aid solution. It's not going to help in the long term. Well, the other thing that I had heard and this was gone back a couple of months when we're talking about higher energy prices.

I think this was pre war. Um is that you know some states that added taxes, like you have to understand that there's a lot of things that ultimately go in to what you pay at the pump exactly. And this is no one likes higher prices, no one. The consumers don't like it. Obviously politicians don't like it. And so but to try to game the market and to try to lower prices like that, it's just not going

to work. And we have to remember the spair is supposed to be used in emergencies, and so to use such a large amount to try to fix these high gasoline prices. A lot of people have been talking to him and saying, well, you're just going to drain the spr how are you going to get all of that crewed back and then when there's a real emergency that's a huge problem. Well, he called it a wartime bridge

to up supply until production ramps up. He did say that they will uh sell the oil at market now and then use that money to then buy oil back when the price you know, ostensibly goes lower. But I want to go to the production part because he called out companies. He was pretty harsh, Um, what was your reaction to that? And what are they what could they be doing right now to help ease this supply crunch. What was funny about that is he saying, you know,

it's a bridge until the production ramps up. But why would production ramp up in December and not right now? If so, it doesn't really make sense that he's saying, well, it's a bridge until the later, until the winter when they start ramping up production. Because if companies wanted to ramp up production, they were going to do it now. And as we mentioned previously, companies don't really want to

ramp up production for several reasons. One, this administration has not been friendly towards oil companies, so the idea of them ramping up production in the meantime just doesn't seem like a good idea to them. They don't they don't want to be stuck like two fourteen with all of these extra barrels when demand then lowers down and it takes a while to ramp up production. So Biden was writ in the sense that it does take a while to ramp up production, but they would have to have

started months ago. So what's the likelihood if we take the big picture, especially if you consider the conversations and the aggressive ones that we've been having about a pivot towards more alternative energy. Again, like you say, you know, I've seen you know, the rush up in the back ends a few years ago with all of the frocking and everybody, you know, just frenetic activity. But that's an

area that's seeing boom and busts. So what is the likelihood that companies do anything in terms of investments are opening up the spigots when it comes to increasing the oil supplies or how long, like how they're gonna wait, They're going to wait. And we've even had he even sided that there was one oil company that said, even at two dollars barrel, we're not going to drill more. There are some companies that way, wait, slow down two barrel,

and they still will not. So what is the break even point or what is the tipping point that says okay, we're in this. Well part of it is right now the market is fluctuating so much, the volatility so high, so it needs to be sustained higher prices and I

think that production. They're not seeing that, they're not seeing sustained higher prices, they're just seeing Okay, well, this is because of the geopolitical risk premium, and so it doesn't make sense for us to start upping up and it takes months for it to get on the market if prices are not going to stay elevated. But isn't the geopolitical risk premium going to be something that continues for months?

I don't sustainable right exactly? See, and based on everyone we talked to, it doesn't look like if Russia were to, you know, suddenly pulled back from Ukraine. It's not like multinational energy companies would go back into that country or start buying oil to the same extent that they were buying it before. That is a really good point, and it wouldn't be to that extent. But right now, the

geopolitical risk premium, it's a premium. It is not necessarily pricing exactly what's happening, and so that is the big issue. But I completely agree, it's not like we're going to go back to the before times, but there is going to be this easy Can you just explain something real quickly. We've only got about forty twos. I mean there's different types of crewed, right, So the strategic SPR is that is the oil the crew that we use at the pump, no, And so that's the thing it's going to. We also

need high refined new markets. We need refiners to be able to turn that into gasoline because they're not just giving out gassling. They're giving out crude and they're giving out sour crewd, which is well, we're not sure yet, but the first time, the first SPR when it was released, it was sour, which producers didn't want to buy because that's not the good type crew. They wanted sweet crude. So we need to see what type of crew they're

gonna give us. You know, it's like when we were making a vaccine, like we were learning about so much. I think about how many times how long we've been covering these markets, right, But it's something like a crisis that you really understand the intricacies of a market for light sweet crewed or do you prefer sour crewed. I'm kind of a sour crude, can't you tell? All Right, Julia,

thank you so much. Well appreciate Julia Fanzaris. She's oil markets reporter at Bloomberg News here and her Interactive broker studio wt I crewed right now down about six and a half percent, down over seven bucks on five cents a barrel. You're listening to Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Hey listen. We often tap the world of sports for clues of leadership, business trends, investment trends, which takes us

to this week's Bloomberg Business Week domestic cover story. It's all about NBA superstar Chris Paul. The cover says it all Chris Paul wants to win it all. This story is by Aaron Cohen and Joel Weber. Arian is a writer at Bloomberg Business which she joins us down the phone from Portland, Oregon. Joel Webber is editor at Bloomberg Business Week. He's with us in the Bloomberg Interactive Broker Studio. Joel, I want to start with the cover though, because I

love this cover. This is the domestic cover story. Once again, it will be uh. It is available now on newsstands, on the Bloomberg and at Bloomberg dot com, Slash Business week, Um, how do we get to hear so? Chris Paul is someone that we've um watched on TV playing basketball for years. He has just an amazing on the court presence right now Phoenix Suns, where he's the point guard UM our

top seed heading into the NBA playoffs. Uh. He has also done something that's pretty remarkable off the court, which is build this little bursioning Uh it's not even a little, it's huge, actually versioning business empire. And that was sort of what we were interested in it because you know, increasingly we've seen athletes be able to do this where they can sort of create an off the court empire, no longer waiting for retirement to do it. And Chris is sort of the embodiment of that. And he's got

some pretty interesting mentors. Um. When in particular, uh, Arian, what did you learn about his approach to business when you got to talk to him? Yeah, Chris po is a really interesting guy. I really enjoyed getting to hang out with him a little bit. Unlike most of the retired athletes portfolios, when you kind of look at what they own, usually it's like restaurants and you know, some chain store somewhere. Um, you don't really get much of

a sense of them and their interests. But um, with Chris, you really get a direct sense of what's in his refrigerator, what he's wearing on his wrist, what he's watching on TV, from his investments on. One of the first questions he asked when he's considering an investment is how does this company impact my life day to day? Which is not the question that most of sirts are asking. Uh. And so he just has fingers and everything. He has a large portfolio implant based foods, um, he has his own

media company. He has some family and child oriented uh app that he owns parts of, and even like medication products. But he's just all over the place in it always directly connected a personal atists. Well, let's go, Joel. I want to go right to this mentor here, because you mentioned he's got a mentor and somebody who you got to speak to um our audience very familiar with him,

Bob Iger. How did this relationship come about, Joel? So, Chris got treated to the l A clippers and number of years ago, and and I think it sort of coincided with a moment where he was also really interested in kind of taking his business game to the next level, and like, you do you just text the CEO, right, um, which was amazing insight about Chris. He basically learned like, if you text CEOs, um, nobody else is texting him. They text you, right except for annoying with Hilari exactly.

So he reached out to Bob Iger and uh, Bob Iger, and he sort of kicked off a relationship that was started. You know. Basically, Chris was like, hey, I need a mentor, and Bob was like, yeah, I've heard I kind of heard that before. Um, and you're You're not the first person who's asked this, so I don't know if it was a brush off or not, but basically, uh, it's stuck.

And Bob, who who I interviewed, has been genuinely impressed with with Chris's business acumen um, and what started as sort of a mentor relationship has actually just become a really close friendship and the two of them talk multiple times a day. Uh. Bob watches a lot of the basketball games. His sons are big fans, so it's it's pretty pretty cool. I did ask Bob if he had a Chris Paul Jersey and he said not, but his

kids do what Yeah? Yeah, maybe would be a good gift together, A mentor would be I'm sure you know, if Chris wins the championship this year, you know, I'm sure Bob will will will you know, maybe I'll y for that. I know we talked about this story earlier, but I still what sticks with me from this column is but uh Iger said about we talked about jettisoning anything else discretionary from your life except for work and family,

because there just isn't room for anything else. When either of these guys, whether it's Bob or um, you know, Chris Paul, this is going to have this kind of job. Hey, Arian, let me just come back to you, because there are a lot of athletes who get into investments, right successful ones. Uh Lebron has been, you know, on the cover of Business Week as well. What is it that stood out for you with Chris Paul? He is so personally involved in all of this, and his family is very personally

involved in all of this. His brother c J. Handles a lot of his business ventures, and he's really hands picking what he does, which is very different from the model that other people have used, where they really sort of assemble a team to make good business decisions. Chris, I mean he spent ten years, you know, studying everything Bob Iger does so that he can really understand it and make his own decisions and kind of build his

own empire. So arian a question that we talked about earlier in the day because we do feature in part of our editor's roundtable in our Bloomberg Business Week weekend show, which will be available starting on Saturday morning. Um, I wanted to talk a little bit about the actual investments that he's made because it's it's a really interesting group. You mentioned some of the plant based companies beyond meat, he was an investor in that, uh In, then the

media company. But what is the common thread that runs through these companies? Yeah, you know, on the court, he has this amazing vision where he can see up close a play or a player and at the same time kind of zoom wide and see the whole court. And he does the same thing in his investing. He really invests end to end. So for example, in his plant based food portfolio, he's got a farm investment called Bowery Farms. He has a seaweed protein investment called Omarrow Foods, right

at the beginning of the supply chain. Then you'll find him in supermarkets he's heavily invested in Beyond Meat and Coya, which is a protein during company. And then you see him at the end at the kind of delivery side of things, where he's invested in Roots Food Group, which they do at prepared meals, and another one called Go Cups, which is grocery delivery. Because his his angle um and his way of sort of encompassing the whole chain um is really quite a strong and notable strategy. Well, it's

a great story. It's the domestic cover story of this week's edition at Bloomberg Business Week magazine, available now on news stands, on the Bloomberg and at Bloomberg dot com Slash business Week. A big thank you to Joe Webber, editor at Bloomberg Business Week, and Aaron Cohen, writer for Bloomberg Business Week, who joined us on the phone from Portland, Oregon. This is Bloomberg Business Week with Carol Messer and Bloomberg

Quick Takes. Tim Stinovic on Bloomberg Radio. Yes, President Joe Biden, he had his second booster shot that was yesterday. He said it didn't hurt you know, every time I got one, I'm like, have you done it yet? Because I look away because I'm a chicken. So then they're like, everyone knows to look away when you're getting a shot. Are awful? All right? Well, we do know the C A C d C has recommended a fourth fiser and Madernak COVID

vaccine for those fifty and older. And we've also seen some data about rises in COVID cas, especially among a younger population, particularly here in New York, even concentrated in Manhattan. Dr Chris Byra is director of the Center for Public Health and Human Rights at the Johns Hopkins Bloomberg School of Public Health. The Johns Hopkins Bloomberg School of Public Health is supported by Michael or Bloomberg, founder of Bloomberg GELPI and Bloomberg Philanthropies. Dr Biro, it's good to chat

with you again. You know, it's so interesting because a lot of what I see on social media right now when it comes to the pandemic is people, uh, my friends uh and acquaintances testing positive once again. And it sort of feels like, you know, at least from a numbers perspective, we're kind of at that pre amicron place are that we were at, you know, back in December, and I'm wondering how we avoid another omicron surge in

just a few weeks. We've been in a lull um and of course we had that severe o macron surge which then rapidly declined. That's what happens, and we've seen that many countries with a macron. But what's circulating now is the sub variant, the B a two sub variant of a macron, which, like the parent a macron, is a very infectious virus. It does seem to bypass immunity. There are more breakthrough infections with people who have been vaccinated. Uh, And of course the numbers are starting to creep up

a bit. So we are worried about that. New York has been in the vanguard of a number of surges in the past. That's one way to describe it, the vanguard exactly. Story. But it's an international travel hub, of course, and it's connected to Europe. So we keep calling it a global pandemic that we're in because we're not out of it. We're not on the other side of it. And that's why, like if we ever say, oh, the end of the you know, we're on the other side

of it. Everybody's like, where do you live? Because we're still in it. How do you see the rest of the year playing at Is there a point where we look back at you know, by the end of the year that we're saying, okay, it's endemic. You know, we're going to have some kind of universal vaccine. Okay, help me here. Yeah, well there are there are some encouraging

things to say. And first of all, to say that for people who are boosted, and of course it's good news about the approval of the second boost or the fourth dose for people over age fifty um amicron itself had quite low rates of hospitalization and serious disease, and that's the same with the b A two um uh. It is really a problem. And for example, in Hong Kong, where we're seeing high death rates where you have elderly unvaccinated people, they were very slow to get the elderly

population fully vaccinated there. Well, we're not expecting to see as much of that um same situation. However, boosting has been slow. People have not ramped up getting even that first booster dose, so we're only at about under a third of eligible adults being boosted. So the message, I think really is get boosted now. We need to blunt

what is what is to come. The other reality is that what we've seen in a number of populations is that the natural immunity to previous uh COVID nineteen infections wane, and the model is will tell you that the waning of many people in the US who are not vaccinated but who've had COVID is going to really be around June. So the time to get boosted is now, before June and before what looks like the potential for another surge probably of infections much less hospitalization. Dr help our our

listeners out. I got a text message from my mother in law yesterday asking if she should get boosted. She's over sixty five. Uh And I actually got the same asked then asked my parents if they were doing it. They're over sixty five. My mom text me back, she says, Dad wants to I'm on the fence about it. What's the guidance doesn't seem to totally clear here. It was very clear with the first booster, but with the second

booster is not totally clear. Well. Uh so the CDC guidance um is that it's it's really and and this, by the way, is based on the data from Israel. Most of this decision has been driven by reports from Israel about how fourth boosters were reducing hospitalizations and serious disease in older people and people with chronic conditions. So really the window is five to six months. If you are more than five months out from dose three, UH,

it is time to consider a booster. H. If you are fifty and older, and particularly if you have any of the chronic or underlying conditions that are associated with poor outcomes from COVID, that time is now um and UH. And it's particularly important of course for people who have somebody I you know, compromised in the home, also people living with kids under five, because as we know, they're

not eligible yet. Well, listen, we really appreciate your thoughts on all of this, because this is certainly top of mind amid everything else that's going on in the world. We're trying to stay on top of this, certainly for our listeners and viewers. Dr Chris Buyer. He is director of the Center for Public Health and Human Rights at Johns Hopkins Bloomberg School of Public Health. Of course, supported by Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies.

He joined us on the phone from Baltimore. One thing that's five months out, he said, for the booster, after the after the third shot, and I think you know it all comes it's it's all happening at a time when we're seeing, you know, increasing numbers of people not wearing masks indoors, and in fact New York City telling young people to wear masks indoors despite the fact that the levels here are still remained long we've been masks off, and I've had colleagues given coming to me like I think,

can I throw my mask back on? And I've been kind of wearing masks all right. You're listening to Bloomberg Business Week right here on Bloomberg Radio. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. So among our most read stories on the Bloomberg throughout the day has been on Amazon renewing it's co branded credit card deal with JPMorgan and Visa. Tim bottom line, it is about bottom line.

It's a big business for the big banks that compete for this. It is, well, Jenny, I want to get your opinion because you a lot of times when you write stories, they are among the most read on the terminal. Oh sorry, yeah, I'm so sorry. She's like in our studio and we've been talking to hers, so I just like think everybody's with us. Jenny Seraine, finance reporter for

Bloomberg News. She's with us in the Bloomberg Interactive Broker studio. Jenny, forgive me when you do when when you do a lot of your stories do end up at the top of the most read and it's one of the reasons we love to have you come on the program. But is it the fact that this is a big part of the company's business or is it a part that you know, our our our customers love to read about credit cards. I think it's a little bit of both.

This is one of the most popular credit cards in the country in general, so lots of users of the Amazon Chase card. Um, but I don't realized it was one of the most popular. Are you kidding? Yeah? Five cash back on all Amazon purchases, right, really? Okay, Jenny's nodding, Okay, bigger ones, Yeah, and then I think it's also the fact that you know, last year there were a lot of headlines that Amazon was looking to possibly move this

away from Chase, away from Visa. So for a lot of the investors in those companies or employees in those companies, it's probably welcome news that Amazon decided to stick with its long, long time partners. How much this bank make How like do banks make off of this? I mean every transaction they get a little snippet right every Yes,

So that's that's definitely true. I think with this it's like, um, a really good way to get lots of customers who feel very loyal to these cards because they're usually very loyal to the retailers that are attached to them. So what about for the banks? Yeah, so I think it swings both ways. So the banks they usually do a revenue sharing agreement. Um, they also do a lot sharing agreement. UM so you know, hopefully consumers can pick up with

their bills. But um, but yeah, so these are very lucrative portfolios for both the banks and the the merchants that they partner with on these. And so that's why you see there's so much interest in both Amazon's the Deltas, the Americans, the Uniteds of the world. UM, these big,

big card portfolios, they're they're very lucrative. But there was some drama in the past few months about this, and that's why I think it's also a surprise to many people because Amazon in Singapore and Australia last year started posing small search charges on Visa transactions you right, and at one point announced its intention to ban UK issued Visa credit cards. So it's said it was Amazon was not happy about its relationship with Visa at a certain

point and is now renewing it. Yes, so they did get into a little spat um for most of last for the last few months of last year and starting off this year. UM, they have reached a global agreement and so I think a lot of folks assumed that the credit card would be part of that. But today really put that to rest and kind of confirmed that. No, they seemed to be on good footing again and they've renewed and they're gonna be partners for many, many years

to come. UM. So I think it definitely was welcome news for Visa investors and UM and kind of put that that we're eat to rest for a lot of folks. Yeah, it is interesting, Like, I mean, is there something to Amazon staying with the same banks in terms of I don't know. I don't know does it matter if they move it around to customers really care or what? Oh? I mean for sure we've seen I think the last really big portfolio move we saw was when Costco moved from m X to City Group, and um, there was

a big spat. I remember that there was. It was a very big sat Yes, And sometimes these get really um yeah, really angry, and customers like what they like and they're very used. They don't like change. And so I think whenever a retailer is thinking about this, that's in the back of their minds, Like if I move from Chase and suddenly have to reissue a whole portfolio of cards, am I gonna lose customers? Am I gonna upset people? So I think that's always um in the

favor of the existing partner. Um, you know, you always have that in your corner. But um, this is at the end of the day, is all about deals and economics, and so that that's always a huge part of these negotiations. One part I think that's really notable about this card is that it's really simple in terms of benefits. You know a lot of the cards that you write about are the really high end cards, the Chase Sapphire Preferred in reserves and the amex platinums, and you know you

really have to kind of study the benefits. They're like, activate them online and this quarter, it's this, this quarter, it's that. It's it kind of is ever changing. Amazon Amazons is just simple. Yeah, I mean, if you're a big Amazon spender, this is the best card to have, is I think what they want, and so that's why they they design it that way. They want their big spenders to feel rewarded and feel loyal and and that's

what these cards do. Do people mostly use it for Amazon purchases or whole foods or do they also use it for everything? Do you see diapers the Amazon more so than whole foods, but with online delivery for whole

foods as well. Yeah, and this card so Amazon has actually a lot of credit cards, so this is just one of many that they offer, and this one is designed to also be rewarding on purchases outside of the Amazon ecosphere, So they also give you extra points on restaurants and um, I think there was grocery stores and there's so I think it's meant to be for more than just Amazon. UM. They have other cards that are really specifically for Amazon UM. But it's definitely lucrative for Amazon.

Five points per dollar spent on purchases at the Amazon side our whole foods market stores. That's a lot. We're spending a lot on Amazon, like we are. All right, Jenny Seraine, thank you so much for coming in and telling us more about this story. Jenny is financial reporter at Bloomberg News. Check her out at Jenny Seraine on Twitter. I'm yeah, but you let me drive. No, no, no no home, honey, please, I'll do the bride gravels. I want to drive. Good question.

This is the drive to the Globe on Bloomberg Radio. All right, just got about ten minutes left in today's trading session, folks. We are at our loads of the day. We're seeing some selling into the closest. We get ready to wrap up that first quarter. Tim, I'm eager to hear what our next guest has to think about this quarter and the remainder of the year. Jimmy Lee is founder and a chief executive officer of the Wealth consulting Group. He joins us on the phone from Las Vegas. Jimmy,

how are you great? Thanks for having me on again. Yeah, it's good to have you back with us. And I'm looking over the notes that you sent our producer Paul Brennan, and it's it's really interesting to me to find that you actually think, uh, you're sticking to your outlook that you had prior to the war in Ukraine and not making any changes to it as a result of that when we're seeing so many changes when it comes to commodities and commodities having it their best quarter in years

and that leading to a spike in inflation. So why is that? Well, the ward certainly has changed my thinking on the climbing and how often and how severe that said, my rate raise rate, But it's still I believe that there's uh potential optimism for inflation not being it is ugly towards the end of the year, even with the war.

Now what Kuryan sorts of is and how this war concludes and what the effects of it will be in the long run, but in the short term, certainly, all prices if you need to get you know, volatile and UH with the news of the losing cstrate reserves. That's helping a little bit. But until the war is over, I don't think that the volatility and oil and gas

is uh going to be over. So I think that's one commodity that's going to continue to see a lot of volatility, and also other commodities um potentially will continue to maybe go up in price until we get the supply situation and inflation better. But I think that's going to be something down the road that we can go

forward to. Do you think about when you're having conversations about kind of longer term where equities go globally, is this kind of a point in time where there are some really dynamic, make longer term trends create being created. Whether it's with energy and whether it's that shift to all energy, you know, whether it's global supply chains, maybe

there's more domestic production being done. I mean, I just wonder, will we look back at some point at this time and say, Wow, there are a lot of major shifts that were going on globally economically market wise that ultimately will be reflected in global share prices. I absolutely believe

that to be true. And I think that you know, not just from the war in Ukraine, but also from the pandemic and as as many consumers and people realize that a lot of the pharmaceutic the drug that we produced company to produce UM depend on ingredients or nations that you can't necessarily always count on UM. I think, you know a lot of different commodities in different ways that we've made products that we consume here in the United States. I think, uh, you know, industry reason will change.

And the automobile industry, for example, that's been reliant on semi conductors and chips and all those different types of model that they rely on too, you know, produce a vehicle they can take off a lot UM. I think a lot of those UM industries are going to change in the supplight on how they look at the supply chain and as tumors, we may end up with higher prices at the end of the days over that, but I do believe that you're going to see a trend

and I don't think that's going to stop. Actually, well, higher prices for how long. Jimmy, Well, you know, globalism has had a lot of advantages and over the years, I thinks really that the US has been a benefactor of that. The consumer has been a benefactor of that. But I think there's a negative to that, as we're seeing now when we have destructions um in the global contunlector's had over the last but two years with the

pandemic and now it's war in Russia. But I'm sorry in Ukraine and Russia and what's going on duo plitically and the ramifications of that on a global basis for economics, for the world of economics. Right, So I think, um, you know, it's it's a longer term spend. So I don't think we're gonna see if anything immediate because as you know, UH factories and manufactually take years to be evolved, and so I think it's going to be something that's more a longer term trend um. In the short term,

I think it's gonna be continued. We're going to continue to see what we have in the past, and I'm just helping that the supply situation gets better. Prior to the UH invasion into your train, the shipping prices that we track we're coming down substantially, the commodities we're coming down, and so there were some some optimism there and I still think that the equities was a great place to be,

I'd be very cautious as a bond investor. Bond investors have been very um you know, in been pits this year so far more than they they thought that they could get hit in from the bottle of their own

but from equities. From an equity standpoint, really have to focus when you get kind the war on the FED and in past hiking cycles since like thank me do, in every cycle, stocks were get investment to own, and actually growth performed values even though we're overlated, and some of the econmy opening value sectors right, Broth performed very well.

So I think that actually investors we'll get back into the growth names, but maybe not the names that they rallied into during the pandemic that that movie saw high evaluations and and really investors have devastated some of those stocks. Hey, I just want to let our audience know that we're seeing some selling into the clothes here. So we've definitely picked up some downward momentum here. We're now at our lows on the S and P, the Dow, and the

Nazic down about one on all of those major averages. Actually, the NASAIC down about one in a quarter percent. But nonetheless, whether that has to do with some end of the quarter adjusting perhaps, but we are definitely seeing um some selling. Hey Jimmy, UM just got about forty seconds left here. So if you had to put new money to work, would Big Tech Mega Tech, which has had quite a bounce back, would that be on your buying list? It is,

I think, very selectively. So I think this year is an year where we're active investors for foil managers can shine, and so I think just going into exactly is not good enough, and selectively buying companies that have good earnings and quality growth is where the money is going to

be going towards. And I'll say that I think with now the kind of Hockey sentiments that you've heard from Sherman Powell, he's given himself some room on both sides either to when when maybe the does freeze rates you know, if they do fifty most likely, and then but also then the back off later on, depending on what the economic gut is. So I would be a buyer on these. I know it's kind of cliche and saying this for a long time, but take advantage of it. Yes, all right,

good to leave it there. Hey Jimmy, thank you so much. Jimmy Lee. He's founder in chief executive officer at the Wealth Consulting Group. Joining us. They've got about four point four billion of client assets. Joining us on the phone from Las Vegas. Thanks for listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud, or Bloomberg dot com. And you can also listen to our radio show at two pm Eastern on Bloomberg Radio or watch us on YouTube. Search to Bloomberg Global News