BNY Mellon Pershing Insite Day Two

You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio or watch us on YouTube. Search to Bloomberg Clobal News. So we are alive from Gaylord Texan Convention Center in Dallas, Texas at the b n Y Mal and Persing Inside Conference. Two thousand members of the financial advice community gathered here for learning Inspiration Network, and we're gonna say the financial professionals here, Tim really running the gamut. Yeah, everyone's here. Carol, you hosted a

panel this morning on Krypto. You talked with Matt Walsh of Castlaw Adventures, Matt Hogan at bit Wise Asset Management. Everyone we do indeed, and we want to bring in our next guest because he says that now is the perfect time to invest in so called vice related e t f s. He says, matter what's happening with the

economy of the stock market. Ye, people are going to drink, smoke, gamble and these days use cannabis products and psychedelic so to get to say, looking at the market environment, but all of us feel like we could all just do a little bit of that. One of them picked right wherever it's legal or profect. Maybe. Dan Aaron's is portfolio manager at the actively managees have investment management firm Advisor Shares. He's on site with us at the B and Y

Melon Pershing Insight Conference. Dan, good to have you with us. How are you? I'm good, Thanks for having me on. But I wish it was under better circumstances. The market is ugly out there. Well when does it get not ugly? When do things turn around? I don't know. Question what do you make of the ugliness? Because it does feel like it's somewhat orderly. We understand why it's happening, but yet it's it's pretty painful. It is painful or trying

to be. The market seemed to like Powell's announcement for a few minutes yesterday. That was very short lived, but I think it he gave the market what it expected at least. But to say the least, there's a lot of uncertainty out there still. Um, we're not seeing a massive crash, but we see these continued draw downs. Can I get predictions on when that ends? No, but it

seems to be somewhat orderly, not total chaos. I think we're seeing some risk off trades, so that means certain assets that people hold that might be in the riskier categories,

they might get sold off regardless of bingo. But I like to think, as I said, maybe not just vice investments, but thematic investments could be possibly the right place for people to invest because face it, over the last decade two decades, people have been two spoiled by just sticking money in Spy or q q Q, and those things were really really heavily weighted towards the thing stocks that were admittedly outperforming. But you've got to look at Netflix

and get an update on that. So other asset classes, other areas are going to come back outperform, maybe be less painful. And that's why I think BIS investments or even we have an e t F that's in hotels restaurants. Well, let's talk about vice first before we get to hotels and restaurants. The advisor shares pure Us Cannabis ETF ticker m s o S. It's on your shirt right there, dan Uh. It's at a fifty two week low today,

fading at eleven right now, down from last year. More than what weed stocks have just been getting feed up. When when does that pain end? I'd like to know that myself. It's been a very long, painful draw. No, it is not. Now. What happened is when Biden first got elected and then he said certain statements publicly about marijuana, and then we had the runoffs in Georgia, cannabis stocks skyrocketed. People somewhat foolishly assumed that legalization of some for was

right around the corner. Well, politics don't work that way. It's been a slow, painful politicians playing politician games ever since. And I don't. I've never said there's gonna be a full legalization. You're not gonna be able to walk into Walmart and buy marijuana. Never, You don't. Never. Interesting because a lot of people do think that mass market. Yeah, we're totally more mass market. Um, I think it's going

to be piecemeal. What what I'm planning on seeing in this calendar year actually is something called a Safe Banking Act. So it's outrageous right now that it's this multi billion dollar industry of cannabis. These dispensaries are forced to worry about armed robbery on a daily outside of them for that reason. So I want the dispensaries to be able to bank. But another piece is if we have safe banking,

then these US plant touching cannabis companies. Again, the I guess companies in the world by market cap, well, they can't do business with most of the major banks for custody, for trading. I'm talking about their stocks now. So if we get safe banking, most people feel it will directly lead to a m L and finn sends in similar rules being rewritten for cannabis. It'll force it, actually, and then mask hack and n Y s C will be

comfortable listing these stocks. But can I say, you know, Dani or unfortuately, I wish we had a lot more time with you. But we've been here before where there's momentum and we think the regulatory environment is going to it's all going to happen, and then it doesn't. And right now, when I look at all the things that are facing regulators and lawmakers, I don't know where the sacks app So how patient do we have to be

as patients? Quickly growing area. It's going to be volatile as heck, And we've seen this and we've seen this before, ups and downs and candidly when Canada first legalized, right but then again, these things skyrocketed when Biden first got elected. Um Democrats got you know, the runoffs in the Senate.

But the stars seemed to be aligning right now for people of different opinions coming together thinking we're gonna have something and at least the safe banking area, not wide sweeping legalization, but having safe banking would be the first domino to fall and things would follow. And the do J, the d o J just spoke yesterday making changes. All right, you gotta come back on her air because we would love to continue. Dan Aarons, he's managing director, portfolio manager

and Advisors Shares Investments. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. We're live from the Galor Texan Convention Center, Dallas, Texas, where at B and Y Melon Pershing inside conference. Two thousand members of the financial advice community gathered here for learning, inspiration, networking. So many smart conversations going on. And our next guest

here on site with us, as Ainslie Simmons. She's doesn't have Persing X. It's a new unit, a startup at the company, ultimately building out a platform of digital solutions for Pershing's wealth solutions clients. I cannot wait to talk with it. How are you fantastic? So tell us about

what you're doing. Yeah, So Pershing Access, as you said, a fintech within the Bank of New York Melon, and we're building what's called an advisory platform, which is all the tools and advisor needs to provide a client advice about, you know, their financial plan, their portfolio, taxes, you know, anything that really will help and end investor make good decisions.

What specifically were you hearing from investors, from your customers, specifically from your customers that made you say we need to develop this thing internally, we need to build it. And what feedback did they give you about how to design it. Yeah, So the really interesting statistic in the market is advisors spent other time with clients and seventy behind the computer pushing buttons. It sounds like doctors no, and that's insane, right, And it is today's day and age.

Why do financial advisors have to be think so much time tether to their desk? And so our clients were like, do you have a way to help make us more efficient? And the truth of the matter is there is no way today. So we decided to set up this division and build this product with our clients guiding us by the way and helping us prioritize what you come for some core five with the sole purpose of saving them time so they can help more people. You know what

that means, they'll grow their business. So let's top of mind in terms of how you prioritize what you need to have on this platinum resolutely. So the platform itself is going to be innovation, right. Never before have you been able to connect this application to that application to that application, kind of think like g suite, you know Google Sweet right, where each product can be itself. But like good things happen if you start to use more

than one product. So the platform itself is our first priority. It's really complicated, it's really hard, but that's where we're starting, and then we'll put applications on it that advisors need. They're not all going to be there to start, and we've been really clear about that. How are you thinking about this from a hard work perspective? It's a cloud based so does that mean that equally people are able to access it equally? And you know, to the fullest extent,

whether they're on a PC, whether they're on a Mac. Yea, most advisors are a pcn tablet, right, they don't go they're not usually working with clients on a phone. Right. So as long as we're doing what's called responsive design, it will be able to fit to any device type. We should be fine. I think really importantly, it has to be secure. It has to be safe. So that's where the Bank New York Melon comes in. Right, go ahead.

What about working from home yet? Because this is going to be web based, you can do it from anywhere. It's it's that I said before you sat down. I we loved reading about your background. You worked in beer, you worked it's soup, Carol soup and then fintech right right, and do you have your own startup? So how do you think about though, like the end consumer right what they need? And I can't tell you. People I talked to like love technology. That mana drives me crazy. It

complicates things about it. And if you think about your money, you're probably lo it into your bank somewhere. Advisors what site? You know, maybe you're are here four O, one case somewhere else. And one thing we're really trying to do with this effort is and create one end investor site that our clients could offer. And you know that was really interesting. In our second advisory board meeting, they said, this thing's got to have an end investor site because

what we have today sucks. So and they were they literally said that. So I was like, all right, if that's what you want, that's what you get. So we're going to build that, Okay, go ahead, Well how long? How quickly? Yeah, So we're targeting to sort of have a sorry, yeah it's okay, I mean a million questions, I get it. Fast is the way of the world, right, So, but this is a very hard built So we're going to put a private data out towards the end of year early next year, get some people on it giving

us feedback. Then we'll start adding apps and and releasing after that. So that's what we're like laser focused on. I've been dying to ask you because you're in the fintech space, and fintech is so hot right now, especially getting so much investment from venture capitalists. When you look out across the landscape right now, what what is promising

fintech that you see? Because I always think back to what somebody said to me, you know, the most innovative fintech we've seen is the A T M. Yeah, that's probably true. Um. You know, I think what's really happening in payments right now is going to sort of speed money and and that's cool. And you know we heard this morning a ton about crypto and digital assets and and that's also cool. Um. You know, I personally think that a lot of uh, there will be a lot

of consolidation. They can't keep going making these microw fintech apps. We're gonna have to start building building bigger experiences. And I actually think perging X is sort of at the cutting edge of that, because we can't just keep making things smaller and smaller and expecting consumers to log into all these places, right, it doesn't make sense. It's like, okay, maybe not apples to apples, but I think about streaming now, like it's all become just multiple apps and it's just

too much stuff all over. Yeah, it's too much stuff. And you're starting to see the innovation. I turned my TV on the other day and I'd start they're starting to aggregate all of that into these more enterprise like collective use and that's exactly what we're trying to do here. We can't wait to see where you go with this. We're going to rocket. We will be checking in with you,

and thank you so much. Ainslee Simmons here, President of Persing X. This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio and this week's cover story it's in the remark section. It

is all about inflation. It's not moderated, it has not peaked, and that's why the Fed yesterday took that historic step of raising interest rates by walking seventy five bases point Tim the biggest time since n Bloomberg Business Week Assistant Managing editor Jim Ellis writes all about it in the Remarks section of Business Week. This week. He joins us

along with Joel Webber, the editor of Bloomberg business Week. Joel, not that surprising, but I'm kind of surprised that you can, you know, uh, win a you can you can actually win a nailbell for this. Um. People dislike inflation. I should note that Robert Schiller, who has won a Nobel, wrote that paper back in people dislike inflation so much.

Oh man, it just up ends everything that you think, uh, you know about the world makes sense, right, And I think um as a as a colleague of mine has likened it to it's like termites suddenly descending on your house and just eating away at at you know, your sense of wealth. And that has a very it makes you go to some dark places really quick. Uh. And that is because of the nature of the last year

and the spike that we've seen in inflation. UM has been something that Americans who have not had a sense of of what inflation means is suddenly it is gripping the country and it is leading to all kinds of anxieties, and that's reverberting across markets. And everything else, and so, uh, you know, I turned to Jim Ellis early in the cycle and said, you know, Jim, you're uh elder statesman on the staff, you live through the seventies and eighties.

At Business Week, you've written We've asked you to write about this stuff before. Can you kind of give us a toe hold in it? And then you know, between the Fed and the markets and everything this week, it really to me what Jim ended up writing was really this sense of, uh what it all means? Right? And and uh so, Jim, I'm just curious, like I'll take Tim's question on children and kind of bring that back to you. Why why is inflation such a like almost

like a cancer for sanity? I guess it it's core. It's because it's one of those things that people hey don't truly understand, certainly don't understand in the way that economists do and um, but don't really have a clear definition for what it is. But they sort of know when it's there, they sort and they're afraid of it. And I think they're most afraid of it because it's one of those things that can affect the quality of

their life. Um. At the same time, they have very little control over and because of that, people are terrified of it. And um, you know obviously, um, you know, an economist might tell you, well, there can be some good things about inflation. Inflation starts moving um, you know, if prices are if wages start moving up, then you know, particularly for people who are either outside the labor force or people at the bottom of labor force, maybe that's

a good thing. But you won't find anyone, as Stiller in his research to Ride, you know, they didn't find a single soul of the hundreds of people they interviewed who actually thought that inflation was a good thing. I mean, instead, we're sort of hardwired into thinking that things that we don't understand and that we can't control our bad things

to be avoided, particularly when they um. The only way they can help you would be if you could guarantee that wages were your wages are going to actually go up and continue to go up faster than prices. And most people are not willing to gamble that their employer is going to do that. Jim, I wanted to go back to something that Joel said, you know, he said that you were at you were writing about the st

in the nineteen seventies. You're at Business Week, and you wrote about this in the Fall, inflation in the fall, and you made some parallels to what you experienced in the nineteen seventies. And I'm wondering now, a few months later, as inflation has continued to creep up and move higher, if you are starting to fear more then you did back in the fall, that we are indeed entering some sort of thing that was similar to what you experienced

in the seventies in a way. I mean, obviously there are some rather significant differences between now and the seventies. I mean, back then we did have, um, you know, we had product shortages that were really important because we had energy shortages both in at seventy three in and seventy nine where we had you know, gas lines. I mean today you can get gas if you can afford

five dollars six dollars gown, you can get it. And also, um, we had significantly higher unemployment rates um back then than we have now. And now we have a labor shortage still from post pandemic, and so in a lot of ways, you know, we're in a better place than we were in the seventies. Obviously, but one thing that really rings true here, uh, you know, in a similarity to seventies, is that there is a feeling that there are other

things afoot. There are other things beyond just um, the continual rise in prices that are making people feel uneasy and out of control and with their existence. I mean right now, we have everything from um, you know, the pandemic,

the pandemic that doesn't seem to want to end. UM, the idea that you know, we have government system that we don't know if we are in control of, if we can trust what the president who says that the you know, the very basis of democracy, you know, the idea of you know, transfer power, that the integrity of elections is all put to question. We have, UM, a lot of things that are making people feel uneasy and

so UM. To sort of get a handle on this, I talked to a number of sort of researchers, including um, UM, you know, economists to think about behavior and UM. They're saying that when people are afraid, they tend to be afraid of everything, and that being afraid of one thing, if you have multiple sources of discomfort, it actually sort of makes you feel even worse. And so right now it's very real to say we do have rising prices,

so we do have um inflation. But at the same time, people feel uncomfortable about government, they feel uncomfortable about safety of you know, with guns and safety of schools, and all of a sudden, it means that you're pushed to the end where you sort of think everything's going to hell. And there's that. So there's that maladies, but then the other thing that is sort of echoes off of that late seventies early eighties moment. Jim is like the spotlight

on policymakers. And obviously we had Vulcar back then, and and he he took the country to places that we haven't gone yet. But I'm I'm curious, you know, in the grand scheme of things, we wrap up the story yesterday day in the midst of of uh, you know, the FED doing what the FED does, uh, and just wondering like what what you read on the fete is and all of this since um, that's the story of the week. Really, I mean the FED is uh, you know, they're in the position of being at least if if

the seventies is any guide, I mean that is um. Um, you know, the one body that can bring it into this. I mean, you can beat inflation. You know. The problem is that to beat inflation, you often have to beat down the economy to the point that the people who will love you for it, well eventually hate you for it. It's simply because um, you know, Paul Volker beat inflation. But to do it, he had to get a federal

funds fate rate. That was what one point. He had to take mortgage rates up to, you know, almost twenty He had to basically take unemployment up to ten percent. He had to basically beat out inflationary expectations at the economy simply because everybody sort of completely beaten down. Now, that's probably works as a monetary policy, it's very bad from a political standpoint, and it's probably going to be the reason that, um, the Biden administration very very very

difficult position for the next year. Well, we all feel it here in some of the conversations we're having. Gotta run. Thank you so much. Jim ellis, of course, assistant managing editor of Business Week, along with Joe Weber, the editor of Bloomberg business Week magazine. This is Bloomberg Radio. You're listening to Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. We're live at the b N Y Mel and Purging Inside conference from

the Gaylor Texan Convention Center in Dallas, Texas. As we've been saying, two thousand members of the financial advice community are gathering here for learning, inspiration, networking. And what's interesting about coming to this event is you're reminded that in the investment advice three space, it's massive firms like a black Rock Black Rock, or a longtime player like t Rowe Price. It's also smaller independent or standalone r I, a registered investment advisors, or like our next guest, it's

a group of advisors banning together. Yeah, for more, let's bring in Jim Dixon. He's the founder, he's board member and CEO at Sanctuary Well, it's a partnered independence network for investment advisors. He's with us on site at b N Y Melon Pershing Inside two. Jim, how are you? I'm doing great? How are you guys? We're doing pretty well.

I mean we're trying to make sense of what's going on with the sell off, and we know we were chatting a little bit during the break, and I'm just curious with all the volatility that we're seeing, with the selling that we've seen, what are you hearing from are as right now? Yeah, we have talked to a lot of our partners with states seventy five partners, and um, the phones are starting to ring, and uh, that may

feel like a bad time, but it's not. It's a good sign because when people start to campitulate and the phone starts to say, hey, I think we should get out, UM, it's either clients or clients of ours. And usually when the capitulation comes, we're somewhere near abottom saying we're there. But I think we're closer than we've been a long time. All right, what are they looking to just get into complete? Yeah? You know, and that's when you know somewhere how much

have they been out already? You know, very little? I think I think they've stayed in UM for the most part, which is usually the right thing to do, right, it's how long you're in the market, not when you're in the market usually and so but but I think it's scared him. I think yesterday, you know, seventy five business points comes in today we're down eight hundred. They're like, where are we going here? Where's the bottom? So okay.

So having said that, when you look at your you know, your members, part of your network, and what their clients want, what are their biggest needs right now? What are they asking about when they make those calls like where do where should we go? Where do we like? What's Yeah? I think great that this whole concept of thang stocks, this technology stocks. Everybody held those and they held them for ten or twelve years and it was easy, it was full seen ahead, and those are the ones that

are getting hurt the most. And so I think, you know, any time this happens, and it's happened a lot in our lives, um, there's a change of leadership. And so I think, what everybody's trying to figure out, client's advisors, everyone, what's the next change of leadership? And if I do go in and I do start to buy, what do I buy? And the things they bought for the last five or six years, the tech stocks aren't probably the right place. And so I think everybodys trying to figure

out what that leadership is. But let's counter that, do you really think all of those big tech names are going to go away, not at all. So I mean, like when we think about our universe and where our world is going, I mean this is increasingly that's it, and maybe not everybody's as strong as going forward to like how do you think about that? And that maybe

will once again be leadership. I was explaining this to somebody yesterday and it's it's sort of like my mile, I go out really fast and then everybody catches up. So I don't think the tech stocks are going away. I just think they went out really fast, and so maybe they've got a year or two that everybody's going to catch up to them, even more coming down, I think, or just not growth, right, just stay where they are. They've grown so much so fast that they just stay.

And some of the more traditional maybe dividend stocks, things that are more you know um uh you know stable or steady or you know the turtle may catch the rabbit, is it, like you know we've seen like the Smuckers, the Hershey's. I mean, this is where you go? Where do you go? I think? So I think you go to those names. I think you can also go to UM energy is gonna be strong. UM you know, I think we gotta worry about the consumer a little bit.

That that's because I think this procession fear is real. How long it will be none of us know. But but what are the things that you need every day that you just have to buy? Right? I think those are those are the names. I'm curious about the conversation that you're having with or in your r A s are having with investors about passive versus active management right now, because passive has done pretty well over the past ten

twelve years since posts Great Financial Crisis. If you were just in the s in an SMP, you have undern index fund, you're pretty happy with yourself. How does how did those conversations come in when are as are trying to sell their services. It's a really good question and really smart smart comment because we're seeing that debate come to life for the first time and probably five or six years it was all smp as always the tex stalks we were talking about, and now you kick you yep,

that's it, and you did well. It was cheaper, it was easier, it was better. But active management starting to do better. So I think when we look back at the first six months of the year, we're almost at that point. We're going to see active management for the first time in a really long time have an advantage. Well, why is it that passive did so well? Because it was it was it was waited These indexes and the

waitings of these index were so technology focused. It was five or six socks that were doing all the lifting, right, and they were the winners. Hey, I wanted to ask you because there's been a lot of consolidations, certainly on Wall Street, and I think about your history. You worked at Maryland p of A of course taking it over. Um, how does today's Wall Street compare with where you saw in your career? You know, I grew up in Maryland. It was wonderful for a wonderful time. I loved it.

Twenty five years there Bank of America bought it just changed. Wasn't better, It wasn't worse. It just changed. The culture was more um, you know, more business, less family, right, And so I think you know what people like Sanctuary are trying to do, and other firms like us or to bring back that culture um and and get away from maybe some of the bigness in the bureaucracy of some of the big banks and develop a brand where you can shop at all the banks and not just one.

And so I think that's why you're seeing this move towards independence. I don't know if you guys noticed, but but this year were the first year in three here excuse me, next year that there will be more assets in the independent sector than they're on the wirehouse sector, which is crazy. But how long are they going to be independent? Because you have a lot of r A s at this in in their lifetimes, you know, actual

people saying wait a second, I want to retire. It's my turn to actually retire and enjoy some of the fruits of my labor. They want to sell, and oftentimes they're going to sell to those bigger firms. You know, we we were one of those firms, were buyer. We're active in the mn A market and um, you know what we do is we do partnered independence, which means we handle the back office, we handle the middle office to front office, and they handle the clients because that's

really where they want to spend their time. So we think that's the model going forward. But the key is is they want freedom and flexibility. They want the ability to sit down with a client and say This is the solutions I think it's best. And it doesn't have to come from where I work. It can come from all kinds of people, just like at disconference. So when you're buying a firm, is there an earn out period

where the owner stays there to ensure some sort of transition. Yeah, usually two or three years they'll stay with us and then they'll they'll transition into it. And if you get to know advisors well, they love their clients are super important. So they want to find that that the right fit that they're going to take care of them. They're gonna work with them and transition those relationships usually two or

three years. What is it that advisors have to do in terms of attracting a younger generation and how they want to address their investment part? You know, I think it's a combination. I was talking about this earlier today. It's technology and talent, right and so nine this industry got a black eye, and it's still not over it, believe it or not. We're in two two and still and so but what I think you're gonna start to see, you know, don't fight the FED. They also don't don't

fight a demographic. You see so many people retire that the opportunity for younger and diverse advisors is so good because because there's a whole right, there's so many retiring advisors that you know the opportunities there, And so I think we're seeing more and more talent coming every day. All Right, you're ready to call a bottom close? What's close to me? I think we're one more of in a way. You know, if you usually look at bottoms,

they come when there's a really bad, ugly day. And I don't think we're quite there yet, but I think we're getting closer. I know when I go away in August, right, the market always sells off. I'm serious every time I go away. Um, what a pleasure. Thank you so much. Great to check in with you. Jim Dickson, founder, board members CEO of Sanctuary Wealth, joining us here at b and Y Mel and Pershing Insight twenty two. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick

Takes Tim Stinovic on Bloomberg Radio. All Right, we are live from the Gaylord Texan Convention Center in Dallas, Texas at the ben Y Melon Pershing Inside Conference, and I got to talk about technology because that is such a big part of the financial world. And when it comes to worldwide I T spending looking at four point four trillion this year, banks and investment firms alone spending about six twenty three billion on technology products and services. Our

next guest knows a lot about the space. We're very pleased to have back with us. Rom Nagapon, Chief Investment, Chief information officer. Excuse me at B and Y Melon Pershing. He's with us at the B N Y Melon Pershing inside two conference. Rom, good to chat with you again. How are you nice? Nice? Um, nice to be here

with you. Well, information investment go together. Thank you. Well, I mean today they certainly do in this day and age, because if you walk around here, and you know, for people who can't see where we are, we're in a huge convention center and everywhere I look at every booth, there's something about technology there. How are you thinking about technology this year? Technology drives every one of our business. Um. It used to be thought like the business is actually

using the technology. But I wanted to say, being a that the technology actually drives the business. As you could say, and you said, all these folks here, they're all showcasing technology even though there's a business behind it that's the one that drives them, and we're excited and being be and my melon pershing. We are also showcasing a lot of advancements in what we're doing with technology. So what's

the continued digital disruption impact on the advisory world. Well, the pandemic actually accelerated the adoption of digital, but I think there's more room for that. There's more digital adoption needs to happen in the advice of each space because there is an expectation from the investor that it's a seven by twenty four any time any place, I want to be in touch with the advisor and get the CERTA.

That was not the case maybe three years ago, but now the expectation is like that because every other businesses has changed. You know, there's a contact less everything. I mean, you walk through this island, this thing, there's like scan the QR code, same thing. It's going to embarrass that paper here because it feels so yesterday Sweeney hosted Bloomberg Markets had no paper people. It's a digital transformation for Bloomberg Radio. It is. Well, I'm wondering how this trickles

down to the client experience. Experience is the king right now, It's the play. You know, everything we do, it's all about experiences. People love that experiences that they get and they want to do business with you. So even though the term experience is very broad, it's all about applying technology to give that experience, the right experience that they really want to use and come back again and again.

One thing I think about, and I asked this of my crypto panel, that it wasn't a cryptop It was about the how do you reimagine money? The crypto was a big part of it. But we talked so much about crypto and understandably sad and I felt like I get it now a little bit more. But I mean, how do you think about in your world that you know you need to be saying to people, Okay in five years, ten years. I mean, this may not be a thing now, but it will be down the road.

I always think about the uberization of the world. I think it applies to so much digital currency using payments real time, so the cash and the checks is not going to be used if you really look at the payment, that US payment is a little bit backward. I don't want to say that, but I'm saying it compared to the rest of the world, they have gone into instant

payments and everything. So what I think is in that space that you've mentioned about the cash and the digital currency and the crypto, I'm saying, everything is going to be digital in the future. How do I pay you? It's going to be digital. It's just cannot be that. The peer to peer is cannot be done. You know. I know there are red moos and zels and other things so that, but it's going to be even more prominent in terms of the payment that's going to happen.

I'd like to ask people like you when I have the chance, because they're thinking about technology day in, day out, probably when you're sleeper thinking about it too, what do things look like five years I think that was well when I sleep, I got to sleep. I mean hopefully hopefully you're not having nightmares, okay, but I'm wondering you. You know, let's say we're sitting here five years from now at at Insight, what's the technology that's going to

be showcased. Well, certainly there's a there's a things that's going on with metavers I'm just going to be in the metaverse. Yes, it's possible that could happen, but I think people are trying to figure this out. What is the exact use case and especially in the world and finance, how it's going to play. We're actually showing something as well um in in one of our boots on the metaverse web three oh is going to be implemented is

like you own the data. You want to own and control who you give it to and how that has been used. What does that mean wrong owning your own data in the financial space. I get what it means maybe in the retail spaces to maybe a social media identity. That makes sense. Yeah, exam So let me let me give you an example. Let's say you go to a doctor's and you've got about fifty seconds. Yeah, you go to a doctor's office. What they give They give you a phone and a pat and ask you to sit

there and fill up a phone. Why you want to do that? That's your data? You wanted to have that data in your wallet. You wanted to go to the doctor's office and say it's click a button and the data goes there. You don't want to fill up the phone? Right? That is your data and you don't want the doctor office to use it for some other purposes besides just serving you. Similarly, in the finance data is yours. You control the data and why they use it, where they

use it, and you want to track how they're using it. Okay, how soon do we get there? It's it's it's happening, it's working. People are working it in in parts probably you know, I would say a couple of years before everything else good moves, maybe even more. It's a complicated topic, um, but people are actively working on it. I love that idea. I think that is such a big, big part of our future, right in terms of our data control and how we do isn't apply and how we benefit from it.

You own the stocks and the data. All right, so when you sleep, you don't think about this. I want to sleep. That wasn't the question. I am with you, all right. Rom Nagapon, he's the chief information Officer, being y Melon Pershing, always a fun conversation when he joins us on site here at Inside two. This is Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim

Stinovic on Bloomberg Radio. We're live from the Gaylor Texan Convention Center in Dallas, Texas at the ben Y Melon Pershing Inside conference, Tim and I talk a lot about diversity and inclusion, and I was thinking about a story this week um by a Bloomberg News team about black

executives rising inside City Group. Even as the firm says there's more to be done, there is still so much more to be done when it comes to advisory and thinking about all of the investors and consumers that are out there that need financial advice, well, certainly something our next guest knows a lot about the importance of diversity when it comes to financial advice. Specifically, Tanya Bottoms is managing to actor and senior Managing Council at b N

y Mel and Pershing. She's with us right now at Insight. She's also a member, we should note of the company's executive committee. Can we start there, because I think that's important. I think when you start having members of a team are part of the executive committee, it means you have a seat at the table when it comes to strategy

important decisions. Tell us about that. Sure, So um B and ym L and Pershing felt that in order to make sure that we were seeing lasting change in our line of business, UM, and to make sure that we were doing work that was going to be aligned with our overall corporate strategy. They created a role for a Pershing Diversity and Inclusion Advocate, and I was asked to fill that role. And the point that you made about having a seat at the table is so important. UM.

I am not window dressing. UM. I'm a full member of the executive committee. I weigh in on many different types of decisions. UM. Not just there to talk about diversity equated inclusion, but also to open our lens right and have a wider aperture about who's missing from the conversation. So with that is the backdrop here, talk to us about numbers because I'm curious about goals and when we talk about meaningful change, we need to actually see that

in the data. So what are you going for? It being white Pershing, So we're going for a definite increase and representation. UM. We have been challenged as of industry and as a business and seeing representation among black, Latin X and other ethnically diverse groups in leadership. We've done, I think as an industry and an incredibly good job on gender diversity. UM. And of course that still remains important,

but we need to add that other diverse lens. So we are focused on increasing representation across the enterprise so that in fact it does represent the communities that we serve. We also are partnering, you know, with colleagues in the industry, other firms as we think about how we can make financial services an attractive option. Um, you know, I'm a lawyer and financial services I never would have dreamed of

my job when I was finishing law school. So we need to really make sure that everyone understands that there's opportunity. You know. Stephanie Pierce b and Y Malon earlier this morning in my panel talked about how women are left behind when it comes to you know, investing and being part of the investing community. And we're talking about trillions of dollars. So think about if that was part of investment world. And I think about minorities and diverse, our

diverse population who are left behind. Um, they're ready to be represented, aren't they. Absolutely? And the entrepreneurs, the small businesses that represent much of the small business community are actually started by women, women of color, um or run and owned by you know, men and women of different ethnicities. They're ready to be part of part of the industry, part of the solution. Um. It's not that they want something as a token or hand out. They're ready to

compete on their merit. Well, that's what I wanted to talk to you about, is the competition element of this and talk about how research has shown this makes a firm better, This makes a firm stronger, This makes a firm better able to compete with its peers. So you're right, Um, there are a number of studies that talk about the benefits of having diverse leadership, UM, the increase in representation of women and minorities on boards and how that's correlated

to the profitability of firms. And you know, if you think about it, right, we're a data driven industry, so that should be right a driving part of it, and the data absolutely is. But we've got to also think about how we're dealing with people, right, not just numbers, and being able to show people that we're all included in this effort and in this discussion, that everybody has

a role to play. And if we're talking about representation in black and Latin X communities, it doesn't mean that it's to the exclusion of any other community that we serve.

So having the ability to have um diverse I'm sorry, having the ability to have a diverse representation within your company is only going to serve you better when you're engaging with clients, when you're engaging with other communities, because then they can see themselves and you so important when we talk about the gaps that are out there in society, I mean, this is a big step in reducing those gaps we have to run. But thank you so much, really,

thank you for having me so great. Tanya Bottom, she's Managing Directors Senior Imagine Council at the and Y Melon Persian joining us here on site. Bro Journal now, but you let me drive, no, no, no, please, I'll do the riding gravels. I want to drive. Good question. Drive is the drive to the clothes than well up down on Bluebird Radio. All right, we have just about ten

and a half minutes left in today's trading session. We are driving to the clothes and what has been a risk off trade definitely off our best levels of the session, and we're just off our worst levels, but nonetheless down. As you just heard from Charlie, four point six percent lower on the NAZAC dow down two point eight percent, and the SMP we're talking about it almost three Really

eager to hear what Laurie Brignock catches to think. She's chief investment Officer and head of Global Liquidity at Investco. She joined us on the phone from Atlanta. Laurie, how are you. I'll be a lot better when these markets closed today. Yeah, well, we count down. It's the countdown to the clothes now, so we only got ten minutes left at this point. Help us make sense of the

sell off. I'm wondering what change between yesterday and today because we saw quite a rally after FED Chair J Powell said that, you know, fifty or seventy five basis point rate hikes, that's not the new normal. Yeah, you know. But though quite honestly, I think I think yesterday's rally was fairly optimistic. I mean, within the FED has a real challenge on their hands right now. You know there's inflation that is, you know it's going to be worse.

The prints next month are going to be worse than what we just saw with the CPI numbers, and I think the expectations numbers, so I think reality setting in a little bit um yesterday just kind of felt like a little bit of h of a Christmas present, if you will, post FED. But the f's got a lot of work to do on the inflation front, okay, so talk to us a little bit about the work that they have in front of them and the blunt tools, as FED Chief J. Powell refers to them, the blunt instruments.

To what extent can they actually bring inflation down? If you know who wasn't yesterday, Doug's Yoko over of our Capital Partners said, of inflation, it's not something that can be done with monetary policy because it's supply related. It's about supply chains, and it's about energy. Laurie, it's really I think what the FEDS gotta do is try to

stay ahead of inflation expectations. Right, we all know that, and anything that they do today, monetary policy works on a lag, you know, anywhere between you know, twelve to eighteen months. So what they're doing today isn't impacting anything today. And what they're really trying to do is just make

sure inflation expectations don't become unhinged. And I think that's the critical the critical component I mean also the the thing too, as we know, you know, monetary policy was too easy for too long, so they've got to make up some ground here to try to stay ahead of it. So unfortunately, I don't think that the news is going to get any better over the next month for the FED.

In terms of inflation, we're starting to see some weaker numbers just I think in the overall economy, and so you know, this is a this is a tough situation for them to be in. But we're also hopeful that once we sort of get past the peak of the summer that some of these things that we've seen, you know, in terms of Target and best Buy and some of

the supply issues. Um, you know, how you start, you should start to see those pricings start to abate a little bit and maybe give them a little breathing room. I have to say, when I saw that you were gonna be on with us, I thought it was the perfect guest post FED because you know, when it comes to the right liquidity play and where do we go short term. Um, we just had a guest on earlier, Jim Dixon, who said that all of you know, it's the network of registered investment advisors and so many of

their clients are calling and like we're out. I'm done with the market. I'm done. So where do you go when you're looking for the right liquidity play right now? Well, you know, quite honestly, it's been a challenge because every time that you thought about putting some money to work and what has been you know, traditional rate hikes that we've seen over the last twenty plush years. Right, you know, you can, you can start to step your toe back

into the market. Every time you've done that, you've been punished. So you know, obviously in my position, you know, we run money market funds, liquidity products, and so what we're talking to clients about right now is just you know, I know, some of these yields look attractive, but stay short. The Fed's got a lot of work to do. You need to hide out the front end. And you actually

see it. I mean when you look at money fund assets in the United States, we're still near the highs that we saw right right past covid Um Corporate Treasurer. You're still holding a lot of cash um banks are you know, seed deposits are going up up, so there is a ton of dry powder. I think people are hiding in the front end and we're seeing that with some of the dislocations because there's just not a whole heck of a lot of supply to go around for

all the demand. So okay, but if you have to make a choice, I mean, is it just go to cash the ultimate liquid asset? You know? Do you go to t bills? Do you go to ccs? You know, we kind of laugh at you know, we're all getting bombarded with money market. Yeah, but they're like points for you know, an interest rate. It's it's negligible at this point, right, it's pretty low. So where do you go? Well, it's interesting if you think about, like you said, you throughout

you know, treasury bills. If you look at the six months tea bill, it's training at a too to fifteen to twenty that's going to be underwater, you know, in a month. So you know, yes, a lot of people are putting money to work in treasury, treasury bills, commercial paper, but there's only so much supply to go around. You know. What we're turning clients to do is really just parket market the overnight because anything that you buy at this

point is going to be underwater very very quickly. And the other thing too that's been really interesting is when you look at treasuries cash balance. You know, um, we saw that balance go up. You know, tax receipts were quite strong this year, so Treasury has actually been cutting back on the amount of bill supply in the front end.

So if you think about these trillions of dollars that are not normally in the front end chasing very little supply, it's been it's been a little it's been your classic supply demand mismatch. So unfortunately, you know, we are telling people just to stay in overnight right now. It just makes the most sense until we get past these next couple of FED meetings. So timis pointing and like, ask about the liquidity survey. The thing I'm interested in is

about corporate liquidity. I want to know about the health of corporations. Um, what are you seeing? What are you hearing? Well? So the AFP has been doing this corporate um Liquidity survey for seventeen years and as you guys know that, you know that's that's a long time to be able to track what are corporate treasures thinking, what are they doing, how are they managing their liquidity, and obviously we saw the big dash for cash UM back in March of UM.

We still are saying, you know, corporations are whole thing near record liquidity. You know, they haven't really deployed a lot of that cash, but they are starting to put money to work, which is really encouraging. I think one thing that it will be interesting, UM is you know that cash can be put to work, whether it's going to be buybacks. There's probably going to be some of that cash that will get drugged down, if you will, just naturally because of higher costs and things like that.

But you know, they are staying quite short because kind of like you said, you're you know, customers are asking what do we do with our cash? Corporate treasures are in the same boat. Do we extend or do we stay very very short? So they are also staying cautious just because of some of the geopolitical risks. Well, so great and a perfect guest to talk to us after that FED meeting in the current environment. Laurie Brickn actually ce IO and head of Global Aquidity and Vestco joining

us on the phone from Atlanta. Well, we're firmly in a bear market here, Carol, the SMP five thunder down so far this year. Even more if you look at the peak, we're also seeing declines at two point five in the in the Dow. 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 Bloomberg Global News