How Robinhood Made Trading Easy

You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio or watch us on YouTube search Bloomberg Global News. Let's get right to it, because we've got a great guest when it comes to COVID nineteen and the virus, and there's a lot of things on our minds. Back with us is Dr Chris Bier.

He is Professor of Epidemiology and Public Health and Human Rights at Johns Hopkins University Bloomberg School of Public Health, supported of course, by Michael R. Bloomberg, Founder, Bloomberg LP and Bloomberg Philanthropies. He's also Senior Scientific Liaison at the COVID Vaccine Prevention Network. He is back with us on the phone from Baltimore. Dr Bira, how are you very well, good to be with you, Good to have you here.

How do you think we're doing in the United States when it comes to the vaccine rollout specifically and getting ahead of the mute the mutants that are out there, the mutations, and getting to hurt immunity fast enough. Well, the good news here really is that we have two are very safe and effected vaccines, the two Messenger RNA vaccines UM, the Moderna and the Visor. Those of course,

are both two dose vaccines. They have not had some of the same problems that have emerged with the with the Jansen, the Johnson and Johnson vaccine, where the Astra Zeneca vaccine this is the challenge that has been rare, but nevertheless significant complication and blood clots. We don't see those with either the Visor or the Maderna. So our vaccine rollout is going really very well. UM. We're over,

you know now three million adults the immunized every day. UM. And we're expecting emergency used authorization for the Fiser vaccine to go down to twelve to seventeen year olds as well. That may happen fairly soon. Can we get out of the pandemic. Though, if people under the age of twelve cannot be vaccinated, well about of the American population is children under aged eighteen TI. So it is very important

that we learn as quickly as we can. Uh, if these vaccines are as safe and effective in children as they are in adults. Um, that process is mostly being led right now by the companies themselves. That trials are under way. Um, we have the data, as I said,

from the twelve to seventeen year olds. Uh, the we really need to accelerate the research effort for the five to twelve year old right, And of course that's so important for them for you know, getting back to of seeing their friends and getting back to school and and getting back to acted life, which so we really need for our kids, right, getting back to you know, a so called normal life. The thing is, I mean, bottom line, vaccines are the way out of the pandemic done right,

no question, no question. So if we don't get to her immunity, what does our world look like? Well, right now we have a couple of very specific challenges. People have described this as a race between the vaccine rollout and the emergence of these new variants the mutants that

you were mentioning, and that really is a challenge. Some of these new variants are more infectious than the viruses we first encountered UM, some of them have more resistance to the broadly neutralizing anybody's that we've been using, and at least one, for sure, the variant that was first identified in South Africa does appear to be a challenge

for at least the astra Zenica vaccine. The good news is that they both the Messenger RNA vaccines Byserne Moderna, and as far as we can tell, the Johnson and Johnson vaccines do appear to provide good, robust protection against the variants that are circulating now. But what we're learning with this virus is that mutations keep happening UH, and we really have to get ahead of those mutations. The big challenge right now is that the vaccine rollout is

sold in much of the rest of the world. That's because the rest of the world doesn't have the same access to the Messenger RNA's they were relying on Astra Zenica and Johnson and Johnson UH, and we are seeing huge surges of infection in places like India and Brazil, uh, much of South America in fact. And if we can't do better with getting control of those epidemics and getting those populations, I mean, uh uh, the current generation of

vaccines may be undermined by these new variants. That's a real threat, and we're working very hard to prevent that scenario. So Dr Byra, what is the solution here? I mean it sounds like what the only the only thing to do is to for the US to take a leading role in making sure that the rest of the world is vaccinated. I think that's absolutely essential. I think there are going to be a couple of important steps in

that direction. First of all, you may have seen that earlier this week the European Medicines Association did approve going forward with use of the Johnson and Johnson vaccine with a guidance that there is a rare but serious complication associated with blood clocks. Most of those have been seen in women underage thing. Um, so there is going to be a guidance. There's a hearing on Friday with the Advisory Committee on Immunization Practices. This is the US independent

body that gives guidance to the CDC. I think many expect in the field. They have been collecting and looking for more data on the blood clot It's very likely if we think that they are going to do the same thing as the European regulatory body, which is to say they will approve continuing use of that vaccine with the guidance for providers, with the caution about the rare blood clots. Uh. The right apparently identified a few more cases, but it seems like it's a handful, and roughly we're

talking about one in a million. I want to get right back to Dr Chris Buyer, Professor of Public Health and Human Rights at the Johns Hopkins Bloomberg School of Public Health, also senior scientifical liaison at the COVID Vaccine Prevention Network, still with us on the phone from Baltimore.

Dr Buyer, a listener listening in on our conversation has a question for you, and basically is asking, how can we, as parents and good conscious and conscious ask our kids to get shots when we have no data to support the side effects on kids. Furthermore, this disease is not a real risk for anyone under thirty. Deaths under the age of eighteen represent point zero zero zero seven. Basically they're saying that kids are going to be okay, So why are we going to maybe potentially put them at

risk by giving them a shot. How can we do this in good conscience? Well, the first thing could say is, of course, that we wouldn't ask anybody to have their children be immunized until we have the data. And so those trials are underway UH And as I said earlier, the twelve to seventeen year old data from the Visor UH trial is going to the f D, A, M,

and H and being reviewed. So so I think the caller is absolutely right that we need to see those data, and parents are going to want to see that before they immunize. I think it's a common misconception to compare COVID nineteen UH disease and deaths and children with those and adults. The real question is comparing COVID nineteen disease and deaths and children with other vaccine preventable diseases and children. And when you do that, they're close to three children

who died already of COVID in the United States. UH. Looks actually like quite a severe UH number of cases and a vaccine preventable infection, we hope, So I think that's more compelling. UM. It's also the case that, UM, while children have had much lower rates of illness and death from COVID, they've had a very high burden of non health issues. The social isolation is hard for kids, to developmental issues, the educational issues that parents are so

concerned about. And we think, particularly for the twelve to seventeen year olds, that vaccination is really going to help them be able to engage again in sports and after school activities and being with their friends. So those those all get weighed in the The non medical complications of COVID for kids have been severe. All right, Dr Buyer, I just want to ask about messaging around vaccines, because there there has been this idea that, you know, we're

still wearing masks after getting a vaccine, We're still being cautious. Uh. And I'm wondering if it's sending the wrong message about the benefits of the vaccine. It had Dector Amish at Dolls or one of your colleagues from the from the Bloomberg School of Public Health on our show or quick take earlier today, and he's all for you know, eating in restaurants without masks after getting a vaccine and really going back to everything that he was doing before the

pandemic hit. Well, I think you know, it is really important to say that these vaccines have high efficacy against this virus and particularly against serious disease. Uh, so we can do more. The CDC guidance is very clear that immunized folks can meet at home, you can meet indoors without masks. That a huge difference for families and friends,

people getting together. Um, they're also the CDC guidance is also the immunized people and Mrs Williamans, two weeks after your second dose with either the visor of the MODERNA n F J and J is approved again on Friday, as we think it may be for emergency use. Then two weeks after your one dose of J and J uh that people can travel. We still want people to wear masks. We still want to keep that social distancing, although now it has been changed for the CDC from

six to three ft. That's very important for getting kids, for example, back into school. Just very quickly thirty seconds here, the US has come out and basically banned international travel to most countries. Would you agree that we need to stay home at least for now and just quickly if

you could, yes, right now. I think given the variants that are spreading in other countries and the surges that are underway, domestic travel in the US is okay for fulliam and as people, according to the CDC International Travel, we have to be very careful. What a great interview.

Thank you so much, Dr Chris byro Thank you, Thank you, Professor of Epidemiology, Public Health, and Human Writers at Johns Hopkins University, Bloomberg School of Public Health, of course, supported by michaelar Bloomberg, founder of Bloomberg ELP and Bloomberg phil Anthapis. I feel like they had a checklist and we were like, let's get through this. We got we got all important comments about kids too, Yeah, very much so, because we've

got to be thinking about that. This is Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovich from Bloomberg Radio in the Finance section of the upcoming issue of Bloomberg Business Week magazine. This week, it's the app that made trading easy, tim and maybe even just a little too hard to resist. We are, of course talking about Robin Hood, Joe Weber's editor at Bloomberg Business Week, joining us on the remote from Brooklyn and Mr Lena

Golfa poulu is, personal finance reporter at Bloomberg News. It is a fantastic story, Joel. My understanding is it was months in the making. Why did you approach it this way? Right about the design of the app? I think that that it was rooted in um. Missy's original idea was, which was, you know, we we know what Robin hood Um represents now and we know how it's caught on,

but you know, where did it really come from? And so she dug into sort of the a little bit of the early days and what the design uh kind of looked like very early on, and and found an interesting character. So so Missy, tell us who you found? Yeah, thanks for having me on. So, I think, sort of echoing what Joel is saying, you know, the entire Robinson phenomenon that we've seen sort of pan out in the

past year ultimately comes down to its app. And so as we were reporting the story out, you know, an important part was figuring out what the influence was. And that's where near y'all comes into the picture. This is uh, the author of the book hooked and he's basically known in Silicon Valley for his work on behavioral design and habit forming apps. So he basically spent years setting the methods of some of the most popular companies in Silicon Valley.

UM how they were basically using design to get users to come back to their app and so near y'all was sitting at a cafe back in twelve, at which point he was teaching at Stanford and his work was sort of already out um through his blog and through news articles, and he was approached by a young man who recognized him and said, Hey, we're working on the first nice trading app. Uh, can we show it to you?

And a yell agreed and had a two meetings with this young man who turned out to be by you boss, and he's obviously the co founder of robin hood UM and along with his other co founders lad ten if they would lodge Robin hood um a year later. And I think what that really signifies is this idea that you know, robinhood is different from the other traditional brokerage firms.

This is a platform that has used these tried and tested Silicon Valley methods, UH, this playbook to sort of turn an app into a habit where users feel the knee to check in constantly and log back on. And I think you know, if you take a culture look up the design, you can find different aspects of it that point to that. Well, that's what let's go. Let's

pick up on that. Because I loved reading your story and I was going through and kind of counting all these cool things that they do on the robin Hood app and whether it's making it very simple, whether it's providing a mystery gift, whether there's a hierarchy of data by using different font sizes. You know, these are things that you might not think about when you're using it, but it definitely influences how you use it and maybe

how often you might come back to it. Definitely. I mean, you know, the successful Silicon Valley apps have basically used uh specific things, right, So first of all, you have triggers that pull users in, and those exist in the form of notifications or emails that pop into your inbox or that show up on your homepage on your phone.

Then you know you have an app that's basically really easy to use um and so it makes you know, it as easy as possible for the users to do what they came in the app to do, and then it also involves rewards which sort of build anticipation for the users. And on robin Hood, you know a lot of people have focused on the animated confetti, which is one of the most popular um you know, the facets of the app that that you know that robin had

to remove because it was getting so much scrutiny. But you know, if you just look at how long it takes to sign up on robin Hood, it's a five minute process waite order and waste clicker than any other

brokerage platform. You know, the first thing that happens once you sign um in as a new user is you get a sort of scratch off lottery ticket that gives you a free stock, and so you know, whether you're whether you want to invest or not, it doesn't matter because now you have the stock that you can't come

back to the app to keep checking. And so you know, looking at that stock price movement makes you sort of more intrigued as it's it's like it's it's an app and it wanted as missy as you point out your piece and want to design award from Apple It's not something typically happens with an investing app. You mentioned the confetti, right. Regulators have pushed back on some of these elements of

the robin Hood app. Talk a little bit about the confetti being removed and what robin Hood is doing about that, And I wonder too if they're going to start facing even more scrutiny for some of these other features, and ultimately, in order to get ready for this I p O, they're going to have to move away from them. You know what, tim they already are. I mean you talked about the confetti. That was something that it kept coming up as regulators were looking into the company, and so

the company ultimately decided to go away with it. And you know, just last week we saw the Massachusetts Securities Watchdogs file a complaint UH in the States seeking to revoke robin hood brokerage license and that's a pretty big deal, um. And one of the things that they kept calling out in that complaint was the A hundred most popular stocks

lists on the robin Hood apup. And what that is is basically a list of stocks that are very popular among Robinhood users and that's featured in a very prominent placement on the app, and you know what regulators are saying, is your brokerage firm, you can't do that because you can't recommend stocks to two people. That's not your job. And you know what other people are buying may not may not necessarily be the right investment decisions for you.

And so that's something that you know, also caught the attention of a lawmakers in d C and something that they really honed in on when Lad Tennis was down in Washington for that game Stop hearing a couple of months ago. And so that is a feature that you know, robin Hood is really having to defend. They're saying, it's not our commendation, They're just trying to make their app

more social. And so again we go back to that notion that robin Hood is really trying to learn their lines between you know, social media and investing, and it's it's tricky. So missing I'm curious, having spent a ton of time um with uh the robin Hood app the early days of the story, you've played with with other apps, no doubt, Like, I'm curious, what have you learn about

robin Hood as you worked on this story. I think that what's really interesting when you look at the robin Hood app, is you know how much trouble they've gotten into for really trying to make this app as easy as possible. And they really have, in a very successful way, sort of broken the barriers of entry for anyone who's ever wanted to invest. And so, ultimately, you know this

is a good app. There's no denying. I mean, you see it on the Apple uh you know store page as number one very often, almost weekly, and that rarely happens with with finntech companies, but robin Hood is always there, and so you know they should they should be sort of proud for the design that they have on this app. It's really good, it's really unrivaled. It makes it so easy. But you know that's definitely not how regulators are are

you know, embracing this. They think that they're you know, they've broken all the barriers when it comes to protecting investors by removing all this friction. And I think that asimately, you know, being too good can actually maybe come back and hurt you and do wonder Listen, a lot of companies are out there to create an incredible app, but is it get a little bit complicated when you're talking about investors, maybe investors who aren't so savvy, and there's

a lot of money at risk. Jill Weber a Bloomberg Business Week, thank you so much, and uh, missy e goulf of Polo, she's of course at Bloomberg News. This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovich from Bloomberg Radio. Tim among our most read stories on the Bloomberg Today about how the killing of George Floyd focuses US business to really take a close look, a deep look at its record on race, And someone who follows and reports on this at Bloomberg

is known none other than our own Jeff Green. Jeff Green is managing diversity reporter for Bloomberg News, and he joins us now on the phone from Michigan. Hey, Jeff, um, how are US businesses doing when it comes to actual quantifiable data about what they're doing in order to really examine their own record on race and change diversity within uh, within their their their corporations. I mean, I think you really have to give it a capital TB D. I mean,

we don't really know. First off, it's only been a year it's really hard to show a lot of change in that amount of time in terms of you know, hiring and issues. Is there's very few people who set their targets to be like a one year hiring. We know that a lot of companies made at least statements and support. There's been a lot of CEO signing letters. There's been a lot of talk about adding pay for quotas, but not a lot of action on that or pay

for diversity success. So it's you know, it's it's it is one of those things where there's a lot of action, a lot of noise, a lot of activity, but you really don't know, um, what's going to happen in when a lot of these goals are supposed to be realized and none of these CEOs are still there, like where we'll be. Why is everybody so slow on this, Jeff, It's not a new problem. It's been around for years.

You know this, We all know this. It just really kind of smacked us in the face over the last year, uh and really made I think people have a come to Jesus moment, as they sometimes say, so, why why does this take so long? Well, I mean there's two ways, you know, two ways to think about this. UM. There's the sort of the business in the story. We talked to Dr Lomax, who is the president of the United New York College Funding and he UM was talking about that,

you know, every all these companies make eighty. One of the companies we looked at said we're gonna do something more to recruit from historically black college and universities UM, which is great, but they have fifty thousand graduates a

year graduation rate and everybody wants the Howard and Spellman grads. UM. What we really need is for all hundred and one historically back college and universities to get fundamental investments so that the two hundred and fifty thousand kids going there were graduate at a higher rate, and then there will be more quality cannon us available to hire from that system as well as of you know, more participant in

the black middle class. I mean, it's it's like, I mean, that's the one aspect of it is there's like the systemic problem that in this case the corporation probably could address. And I got an email today after the story ran and I don't think this reader meant to be helpful or in any way introspective. But he said, if every company in your story had done everything they had said they would do with George Floyd not have been killed you it's like, you know, he's right. And that's the

other product of this. There's a there's a broader problem in society that CEOs and companies and letter writing campaigns and hiring can't fix UM. They can play a role

in it, but they're they're all there. There's this there's issues in society that are also kind of I think people get this inflated sense of what a company can actually do, and maybe even companies getting inflated sense of what they can actually do instead of focusing on UM, things like fixing the overall system for historically black college and universities, or you know, ensuring that what they're kind

of going at the basis. I have another example like a gives let you ask more questions, okay, So Ken Fraser, kenshin Alt, Jenny Remidy started this organization called one ten, which I think is one of the most interesting things going on out there. The idea is that one million new black employees in ten years in jobs that pay about fifty dollars equivalent, So in new York that be more. But in you know, here in Michigan, in the in

the Midwest, something like a fifty pay. And the key is these have you just have to be jobs for people that don't need a four year degree to get the jobs, because too many they're saying, you know, if you say you have to have a four year degree, even if you have the skills without the degree, you're shutting out a much larger percentage of the black workforce. And so IBM has been doing this already. UM, they're challenging more companies to do it. When they started, they

had thirty seven companies. Last time I talked to them, they had thirty nine. They now have forty three. Um, as you do the may, there's no way forty three companies can produce a million new hires in a decade. So but and we asked another company why they hadn't signed on, and they, you know, they said they take a realistic look at where they can actually do things, and apparently that wasn't on the list. And I think that is this is a tangible commitment you can make

to make change. It's hard and you three CEO sign a letter, but only forty three companies sign up to do something measurable. And that's kind of where I look at this is. I think this is hard, It takes a long time. And um, if you're and people aren't comfortable being held to account. So so Jeff, who who are the companies that are doing a good job at this? And then what exactly are they doing and what can other companies learn from it? And we only have about

thirty seconds left. Yeah, I mean, I think, you know, some of what IBM has been doing is interesting in terms of at this end, you know, broader hiring, broad broadening the aperture. And um, I don't know. I mean, I think any of the companies that are in one ten um, I think are at least approaching it from a unique new angle right. And it does sound like you need to have some way of people have to walk the talk, they have to honor their commitments, but you have to be able to measure it. You can

hold people accountable. Ultimately, we have companies show us your workforce as you presented to the federal government so far thirty seven and said yes, all right, but by the end of the year seventy one. So that's progress. That is progress, and I know you're tracking it all. Hey, Jeff, so good to hear from you. He is Bloomberg News Managing Diversity reporter Jeff Green with us on the phone in Chicago. You're listening to Bloomberg Radio. I'm rom a

journal now. But you let me drive. Oh no, no, no, no, please, I'll let me. I want to drive all Just drive, baby, it's the question. This is the drive to the globe. Thanks. We'll drying us to dawn on Bloomberg Radio. Right just about ten minutes left in today's trading session, getting ready to wrap up the Wednesday trade. We're pretty much hovering at our highs of the session, Charlie, just breaking down the trade for you on this Wednesday. Let's get to

Ryan D. Trick. He his chief market strategist LPL Financial. He joins us on the phone once again from Charlotte, North Carolina. Ryan, good to have you back with Tim and myself. So we had two down days. I think people were wondering, Okay, what's going to happen? Are we worried about earnings? Are we worried about another wave in the virus at least globally? And then today here we are. We see a bit of a rally, and people are

seeming to buy into the economic recovery trade. And as a matter of fact, as I look at the trade here, we're seeing some buying into the clothes because we're just took another tick higher. Oh you're right, Carol, thanks for having me back first off, But we have the two days sell off and just like that the buyers are coming in. I mean, at the same time, I don't think we sold off the last two day because people

are worried about earnings or the economy. We know those things are really strong, and the economy continues open up. You know, one thing you even talk about what kind of worries us a little bit here. Everyone knows the economy is getting better. Everyone knows earnings are strong. You know, some of the recent Cinnamon polls are showing the most most balls we've seen honestly since January. But the call

ratios are getting pretty low. That's not the end of the world for a while, saying things are probably gonna go higher, but near term, everyone agrees things look good, so that can train and us wonders couldn't finally be time to have a little at least consolidation as we enter the troublesome selling may go away period, the worst six months of the year right around the corner here. So what what actually worries you though? I mean, is it just a part of the calendar that's worrying you?

I mean, what, what technically are you seeing that has you concerned? Yeah? Tim, I mean, let's be very clear. You know, we're we're not extremely worried. I'm just saying there are some cautionaries things coming up, and that'sence, you know, sentiment is getting a little over the top, little too optimistic.

You mentioned the calendar. You know, if you overlay the bull market that we've had since March of last year with you know, approximately eight percent gain, and you overlay that with the bull market that started in two thousand nine two thousand ten, they're nearly identical. It's really amazing. But you know what happened in two thousand ten right about now, the market peaked and you had almost a sixteen percent correction into the summer months of twenties of

two thousand ten. Now we're not saying that's going to happen exactly like that again, but we are saying, after over rally, things look really good. Let's not get too spoiled here. But again, another thing that gets this is under the surface. You know, NASDAC hasn't made a new

high yet, right, it hasn't made new new highs. Small caps been underperforming some of the more defensive areas all of a sudden the last week or two have started to lead these just little cracks in the armor, but things we want to be very clear that maybe, um, you know, people should be open to more of a sideways consolidation are out right kind of weakness here. What does it mean to you that the NASA has not made a new high? Yeah, Carol, great question. I mean,

that's that's uh, one of those chinks in the armor. Right, you don't have total market bread everything participating, and that's that's normal, you know. But again when we see that were coupled with things like utilities and staples, um, starting to all of us in real estate starting to take a little bit of leadership that with the NASDAC not making a new high, or what we call kind of technical warnings, I guess you could say, and that's kind

of what we're seeing now. Honestly, you look today, we're bouncing back nicely today, but still it. Those are some of the things that have definitely caught our attention. Um, even though the headlines are pretty optimistic, Um, what are you looking for when it comes to earnings? What I know, I know you're following technicals here, but are there big

themes that you're looking at for earnings? Well, Tim, yeah, I mean we wrote about earnings in our weekly market commentary earlier this week or two weeks ago, I'm sorry two weeks ago, and we said then said we expected earnings to be up about thirty percent year over year in the first quarter. Expected at the times, we have now over eight companies of beat earnings and people think, okay, gee, maybe earnings will be ab over thirty percent in the

first quarter, so we think it's gonna be positive. But the thing that gets us you look at earnings, Um, you know, financials and banks started things off really really strongly obviously last week. Yet banks are flat last week and then I know they're bouncing back today but pretty weak.

So there's a little bit of a maybe sell the news mentality, and we saw that a financials honestly last quarter, really strong earnings kind of sell the news, and then eventually they resolved higher, and we think that could play out once again here Ryan, going back though to your comment about the bull market that we're seeing magic up nicely with the oh nine, two thousand ten bull market, I do feel like they were very different market environments. No,

oh no, well, there's no doubt they were different. I mean it's absolutely I mean, technically you can look at moves and say, okay, it's very similar. But I do also think you have to take into account fundamentally what's going on. Yeah, you're right, I mean the fundamentals look good, but I mean from just the technicals. Right, we we had almost a seventy rally in a year. Right, that is like the greatest rally we've ever seen in a wall. But that's because we dropped like a rock, right, So,

I mean we knew clearly what the problem was. I mean, our economy shut down. As soon as we figured out how we could start to either you know, provide some support and then now start to open it up. We understand the bat I mean it's very logical. No, it is. I mean, you know, the thirty percent correction, fastest bear market ever, although at the same time you know that rubber band is stretched pretty far. I mean, you know,

so we're we're just being a little cautious there. But let's not forget this is year two, right, Year two of the bull market officially started on Marche Um. You know from we know that the lows back in two thousand and and twenty a year later. But year twosable markets, Carol, they've been higher every single time since World War two.

So we're not ignoring. We're just saying there some more some signs, but any pulled back at all, we would use the opportunity because this is still a young bull market, a young economic records for a new bowl market or just a continuation. We just had a brief. It was a big pause, like a big major hiccup and blips. Yeah, I mean we do think, yeah, we do. I guess a major secular bowl market that was likely born in

when we broke out the new highs. But again, I guess if you know, if any remembers what happened back in March, it's sure felt like, you know, there are a lot of people that sold, a lot of people that got out, So it's there's some good arguments either way, but we're still saying it's a yell in this way, it's a young economic recovery in our view because technically the NBRE still says we're in a recession. No one

believes that, but technically we still are. And we think, you know, this new expansion is is alive and well and stocks will eventually resolve higher as they tend to do year two. It's just a little more rocky and a little more troublesome historically that kind of plays out.

We see it that way. Okay, So what concerns you? Yeah, well, again, just to put a bow on it, I mean the overall economic um oh, I'm sorry, the overall sentiment backdrop is a little concerning again season that seasonally we do know, you know, the summer months historically can be troublesome. So that's out there. And then you know, the feed is said they're doing everything they can to keep things going. So could there be a policy mistake. Could the FET

eventually be behind the eight ball? Not our base case, but you know, if inflation starts to creep up, and what small company small businesses and a survey and Wall Street Journal just said that they are having trouble with supplies right everyth it's hard to get stuff all of a sudden, So it could there be more inflation in the fed? Uh is willing to accept that. Could they be behind the eight ball is something that again not

our base case, but something that we're watching out for. Hey, just quickly your thoughts on the Philadelphia Semiconductor Index or the SEMIS overall. It's up fourteen so far this year. SML coming out in Europe overnight and we got some very optimistic news from them. We saw the chip sector really helping out the market trade. We're gonna get LAMB research after the close. Technically, how how did the SEMIS look right now? The simeis are probably one of our

favorite groups in technology overall. Um, you mentioned Simmis though that they're kind of like the NAZAC where they haven't quite been able to break back out the new highs where they were recently and they've been struggling over the last week or so relatively, But overall, we think there's still strong earning, strong fundamentals, and some decent momentum there. So Simmy's are such an influential group on the technology. Is that because of the shortage Just quickly that you

like it in big part of it that's part of it. Yeah, that's definitely part of it. There's the shortage there and demand is awfully, awfully strong, so it's a supply demand story as well. Absolutely all right, we're gonna leave it on that note. Hey, Ryan, thank you so much, Really appreciate you walking through the final few minutes of trading here. Ryan Dietrich, chief market strategist at LPL Financial, with us on the phone from Charlotte, North Carolina. 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