Making Use of Digital Strategy for Business Growth

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. Yesterday, you might recall we talked with Peace Lamp He's the chief strategy officer at work Day. We talked about digital transformation, the changing world of how we work well embracing digital strategies. They are definitely everywhere, including a massive company best known for its industrial construction and mining machines. Tim, we are talking, of

course about Caterpillar. Yeah, I'm familiar with it. It's my three and a half year old's favorite company that exists. I mean, we're talking about the world's leading manufacturer construction and mining equipment, Caterpillar. UM tractor. Well you are now Arlow's best friend a grand It's pretty cool. Let's get to Aggie red Zick, chief digital officer for Caterpillar, who joins this vias here from Scottsdale, Arizona. Really great to have you with us this afternoon. Thanks so much for

taking the time. When we think Caterpillar, I mean we are talking heavy equipment, We're talking construction, we're talking mining equipment. I mean, in a sense, this is stuff that's powered by diesel, and it's the it's quite kind of the antithesis of digital. But talk to me about how you guys harness digital. Now, first of all, good afternoon, Carroll, Good afternoon, Tim. Um. I hope you're three year old would like a little moti greater than I have my kids.

My kids love it, Um. Digital. Digital really enables Caterpillar. I mean, you know cateripilars history, you know, been around hundred years, kind of invented the track tip tractor and figure out how to put gasoline versus a steam engine, and and really kind of changed so many industries since that. We view digital as a big enabler for our dealers and customers to continue innovating in the new world if you're building all around us, so you know what we're doing,

namely just my team. We have a team about four engineers. We collect data from more than one point two million assets that Caterpillar has out in the field. We like that data. We actually put the data in a useful information We create services on top of the data and every past uh information back to our customers so that they can operate their fleet letters. They can know where their equipment is, how hard it's working. And we have many interesting applications we give to our customers and our

dealers so they can improve the operation of the fleet. Well, you know what's interesting too, And I want to just if I can just step away from some of the digital work you guys are doing, specifically because you touched about data and how that UM. You know, data is such an important part of what you do. And one of the things that we love about UM Caterpillar is that you guys are so into collecting lots of data points.

And if I can just for a moment, though, tap into what the data points tell you about kind of our broader world, our macro world, which has been a theme that we have been hammering in particular over the last week or so, because we look at inflation concerns about growth, we're looking at the continued digital transformation of the world and how that can be uncomfortable as we move towards it when you look at that, and you guys are known for your data collection and what it

tells us about the global economy. So if I can just step back for a moment, what does that tell us about our world right now? Well, obviously we don't really talk much about data that we dislob collect from our customers. We primarily use the data to help our customers with applications that they use day in and day out. But certainly, um, you know, we have increased number of assets out there that keep collecting the data and uh

and and leveraging that or benefit to the customers. And I can tell you that, you know, the world is continuing to come along our customers. We have growing number of customers using our platforms every day, so they extract more information from mouths. They use our autonomy solution, for example, more than ever before. So there's definitely a desire and an appetite for data to be shared back with our customers in a meaningful way where they can actually leverage

the applications that we built. Well, that's what I was going to ask you. You know, in terms of what's top of mind you know for your customers. You know, whether it's energy, transportation, construction, forming, which is you guys play into so much of what is our global economy? What is top of mind for them? Well, look, I mean the key for them is to be able to

operate their fleet as effectively as they can. It's important for them to be able to get parts from us, from our dealers, It's important for them to transact with us in a seamless way. So when we look at the investment that we're making a digital for example, we

make investment to help our customers with condition launching. So we have a team on people that build very advanced machine learning tools that it can actually take information from let's say mining truck and a mind figured out two best amounts of data that we collect from it that there's potential issue that may merge over the next week

or so. And if you can get in front of that problem with our customers, save and hundreds of thousands of dollars of one plan downtime and actually get the right part, in the right service eegnuation in front of the customer and in that mind that it will be tremendously valuable to the customer. So they're looking at these digital technologies that we that we helped deploy to them, is a way for them to save on the operational costs we use the downtime. It's really important for our customers.

You can imagine that each one of these mining trucks, it's tens of thousands of dollars per hour if it's not operational, uh, for for the mining operator. But also we make it very easy for them to get parts, to get service, to book service to other parts online. We we've just recently share the breed through our dealers and the network do more than ten billions of parts sales every day on our online e commerce channels and

we except expect that to continue growing. So we can imagine making it very easy for our customers to get their spare spare parts, to get the spare parts in the right moment, in the right time they need them, and our dealers are there to help help customers with that transisi. Hey, is this also playing into what's going on with climate change? And I'm just curious in terms of the data points and is how is that maybe translating into helping out your customers digitally, uh and ultimately

leading to more growth for them. Sure, I mean a very simple way. We have a tool we called vision Link. It's one of the fleet management tools that kind of the factor standard in the industry UM and this tool will tell fleet operators, for example, how much CEO two

they're emitting. So it's very simple. If you obviously drill a little deeper, you can see how is your fleet doing when it comes to idling versus operating the engine for and clearly if you have an idle time, you want to try to reduce it because of ambitions that you're going to get with it. And also you know, you want to just make sure that you extend useful life of the asset that you have to the maximum. So there are tools that we developed in digital that

actually help our customers operate those fleets more effectively. Hey, what does this do for stickiness when it comes to customers and Caterpillar machinery when they're ready to go and actually buy a new piece of equipment for mining or for construction. Does having this digital offering having the data about what they're working on. Uh, does that make them more likely to continue to buy a piece from Caterpillar rather than from a competitor? And what is the data

show us about that? But absolutely total operating costs of what really matters to our customers. It is critical for us to make sure and demonstrate to our customers that operating costs of owning pieces of machinery from Caterpillar is better than from our competitors. If you look for example,

I mean, I'll give you some some data. Um customers that come to us and start using our digital to digital tools to to buy parts to transact with us actually end up buying and those that just do it over the counter, and not only do they buy more of what they previously bought, but they also have an opportunity to explore more of what we offer and therefore they buy more scutes things that they have bout for and they also have much broader spectrum of solution that

we can offer them when they see them in nice, nice and order digital catalog for example. So I give you some idea of how valuable we think these tools are. Well and talk to us about you know, we we've been getting into how what you guys are doing can help customers write clients in terms of their digital transformation. How does this though, the digital transformation that's happening with you guys and focusing on this, how is that translating into growth and how will it in the years to

come on Caterpillar in terms of impacting top and bottom lines. Yeah, absolutely so. I gave you a data point of ten million dollars in deal with part sales per business day today and we expected that will grow fifty in the next three years. That's one data point. Another interesting data point is we've put a lot of effort and energy in our machine learning capability to give better leads to

our dealers. So we use twenty different data sources. Obviously data for machine we look at engineering information and look at thematics, UH information, data from from service, and we collect all of that. We come up with a very precise recommendation to our dealers to go and visit a customer because we know that there is a particular need of going to materialize in a moment. We just started

that effort three years ago. Really in two thousand and twenty one, we did about a billion dollars of closed one, so deal that actually resulted in sale and we expected already will be doing about two millions sale. But during the excuse me sorry, as as we've been seeing supply chains just you know, reach havoc upon during the pandemic, did that type of data even matter, like did you have the equipment to send those dealers? We did. We

actually had the best parts availability in one. So obviously there's been a lot of hard work from many people. I know my team is you know, went all over the world to find the chips that we needed and often had to replace them with different chips. And then the engineering work to ensure that these new chips will work is effectively as the pre those chips. So there's a lot of effort that goes into it. But clearly, um, you know, when it comes to for example, parts availability,

which is what matters. One was actually pretty goodyear. Now we continue to have challenges and supply changes like everybody else in the in the industry. I'm not at liberty to to predict when those will get better. But again we're doing everything that weekend and I think, uh uh are doing a reason need good job, well you know what, and just building on that you know in terms of digital transformation, you hear digital, you do think about sony

conductors and chips specifically. And we've all had some really smart conversations and thoughtful conversations about where we need to be manufacturing, where we need to get our supplies, and we are increasingly hearing, certainly from a US story, that it needs to be closer to home. And you guys sell, um, I think it was it roughly about twenty two billion in North America and then I think more than that

outside of North America. So when you think about where those supply chains need to be, does it make sense? We talked with the mayor of Columbus, Ohio UH into making a big investment in that city specifically to build out a semiconductor presence. Is it really smart? Do you agree that we need to be building this closer to where we're selling uh and for the United States to

kind of step up and bring production home. Well, ultimately, you know, I'm probably not the expert to tell you where the factories should be, but I can tell you that would you buy, you need and you need to have access, right, It's critical, critical for us to have access to chips, absolutely and if that means if we need to do more in the United States, absolutely we'll'll be fully supportive of that. But right now, I mean we're still years away from anything in Ohio coming online.

We still have, you know, short term issues if you need to resolve and those chips need to come from somewhere else. Well, I have to say it's great to check in with you. A few years ago I did a deep dive on the company, spent some time in the proving ground out in Illinois, got to drive um some vehicle attractor. But it's interesting in terms of how this company, you know, continues to brace technology, including the digital world, the digital transformation. It makes sense whether they're

doing it internally or for their for their customers. Why don't we do a remote where we do this from the tractor. I loved it. Man, were a hard cool, self driving tractors so that we can go to tough mining areas so you don't put people at risk. It's pretty amazing. Aggie Redzick. He is Chief Digital Officer over Caterpillar,

joining us via Zoom from Scottsdale, Arizona. Coming up, we're checking in with Steve Kase talking more transformation This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Well, the World Health Organization out with some new research what they call invisible numbers about the impact of noncommunicable diseases what to do about

them n C D s to him. You're talking about cardiovascular diseases, cancer, diabetes, chronic respiratory diseases, along with mental health. They all together under that n C d umbrella caused nearly three quarters of deaths in the world. The impact and quality of life, the global economy and global productivity, it's really massive. So we're going to take kind of a look at healthcare space, the cost, especially when you

think about things like higher inflation factoring that in. Yeah, I'm really glad you brought up that inflation element because we know that health care is a significant portion of duding here in the US. About, um, what does it mean when everyone's paying higher prices for things? For that, we turned to Eileen Flick. She's senior vice president director of Health Technology Technological Technical Services. Excuse me at seageal Uh, it's a benefits an HR consulting firm. Eileen great to

have you with us this afternoon. How are you good? Thank you for having me. We'll talk to us a little bit about some of the data that Carol just shared and the idea of Um. Obviously, these are preventable diseases in many cases. Uh, the question is there's the benefit the cost benefit analysis that happens here right. Costs so much to actually treat these things when people they do affect people and they end up being hospitalized and

long term care facilities. How do we start to treat them earlier so it doesn't end up costing as much and so people are healthier. Um, Well, that that is the key. UM. So I mean I just want to address before I even get to that, I just want to just mentioned that that you know, healthcare is expected to increase next year and inflation is at a forty year high, so I do expect, you know, it to drive up medical costs over the next year. But there there is a lot that can be done to reduce

the costs and to to treat people earlier. So, I mean, benefit plants can do a lot that. I mean, what you could do is really promote using lower cost settings. Um. You could do things like promote use of walking clinics and urgent care centers for non life threatening acute care needs. Anytime patient is using hospital owned facility for care, they

generally pay warfare services. So there's you know, there's very many times maybe the only and best option, but there's capabilities and access for alternative care centers, and they've grown tremendously in the past decade. And I think with UM, with with the pandemic, there's been a lot more promotion. You know, there's been a lot more access to just

UM care outside of the hospital. So the ad patient care in general has just been her tremendous lines and those poor I say, these poor urgent care centers you know who you know, over the last year have just been flooded with patients for COVID tests. I mean, we certainly have to to figure something out so they're not bursting at the seams. Hey, Elean, Um, you mentioned that inflation is take is the causing the price of healthcare to go up. We're gonna see open enrollment, I think

for a lot of companies in the near future. Um, are we going to see sticker shock as employees at many of these companies when we start to see how much more our premiums are going to go up? Well, it depends on the plan sponsor. I mean, I think in plants, plants should expect on on average, and we've

seen this in our healthcare costumes. Are we So the survey basically showing that medical plan costs are expected to increase at an annual rate of seven to eight percent in three Now, you know, we've seen that trends were actually they had gone down significantly because people were not were differing care. And now we're seeing between the inflationary environment and people actually using services, and now there's been enough to conservices. I think, um that you know, we're

seeing that they're going up a lot. That that said, it's not at the same level as what we're seeing for inflation UM inflation, I would think the medical care is price price inflation has actually gone up just in general UM for overall overall consumer of goods, and medical price is probably a little bit behind, and it's behind

because of timing and provider contracting and commercial plans. So I think that it's it's embedded in those rates to some extent, but it's probably going to increase over the next couple of years. You know, I wonder what the the right conversation is to be having at this point healthcare and the costs to society, to um individuals, to companies, just to the economy. We've been talking about this for years. II lean and I do wonder, you know, you guys

are looking at how inflation is impacting healthcare costs? I mean, should we be looking at something like and I talked about n c d s at the top. I mean n c d S, which touched so many of our lives either directly or through people we know? Is there something that we can think about in terms of lifestyle preventive care. So maybe the question to be asked is, you know, how can preventive care impact healthcare costs? There's

smarter conversation. We were have to turn things upside down and how we approach healthcare where we would get a better outcome in terms of quality of life as well as when it comes to the cost equation. I mean,

definitely and prevented. There's definitely opportunity with preventive care. And I think we've seen even with the pandemic that there are a lot of people who didn't like to, you know, take their preventive care screenings and and there are people that are now getting you know, diagnosed with lead stage cancers. So preventive careacters is always a smart thing to do in general. And um, under you know, there's any opportunity you can you have to to get to care sooner.

It is always going to catch things earlier and avoid uh you know, high cost m claim outcomes. So that's definitely a smart thing to do, alright, And so doing a matter well, you know, everyone just prevent a high cost claim and improved outcomes early on. How sticky are we only have twenty seconds left only? But how stickier healthcare costs? Like do they come down or do they

just stay high? If they go higher? Um, there's there's a sticky as a plan sponsor is in terms of managing their costs, and there's lots that can be done to do that. And so I think, um, you know, plant sponsor really needs to look at their data to understand what is driving their costs and using their data they can come to affective strategies you know, to mitigate increases. Well, great to check in with you. I Lean Flex, Senior VP,

Director of Health Technical Services at Seagull. There and employee benefits and HR consulting firms. She joins us via zoom from basch Or in New York. You're listening to Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Well, folks, we know getting back to work for the most part, DC back in swing, and that leads us to a Bloomberg Business Week story about the massively popular video app owned by a Chinese company.

We are talking about TikTok and it's charm offensive around its lottice critics you could just call it's kind of addicting, like cigarettes. It is. What's that? TikTok? Tiktoky? What's Up? Was the last segment exactly. I mean, in a sense, Facebook wishes it would have you been able to snag TikTok instead of What's Up, But that's an entirely different story. Joining us, we got Josh Brustein, Technology editor for Bloomberg Business so he joins us on the phone from New

York City. Joshua, good to have you with us this afternoon. We're also gonna be hearing from Joel Webber, the editor of Bloomberg Business Week from our Bloomberg Interactive broker studio Joshua, I want to start with you as you edited this piece by Alex Branka and Emily burn Bomb. If people haven't been following the TikTok saga, just explain what has uh, you know, Republicans, Democrats and then tech critics so concerned

about the ownership of the app. Sure, so, as you said, TikTok is a really popular social video app, competitor to a out of the US based social media apps, um,

you know, Instagram, Facebook and so on. And in addition to kind of the general distrust of all tech products that work like this and questions about, um, you know, how people are using them, whether the algorithm is manipulative, there's the added twist that TikTok is owned by a Chinese company and thus raises a lot of questions suspicions

about its connection to the Chinese government. Um, and so lawmakers and others have questions about, you know, what kind of data on US users is ending up on servers in Beijing, Um, you know what, what sort of how these algorithms might be furthering Chinese government political priorities and just generally kind of tapping into that increased hostility between the US and China. Alright, so Joshua breaking down some of the concerns there, Jill Weber, you know, I feel

like we've seen this playbook before. Company gets in trouble, sends crew down, a d C, spends money, talks to lawmakers to try and fix things. Uh. Sounds familiar, right, tech company? Um, most of those are our US based Uh. You know, so this one's a little different, Um, And that that is I think part of the TikTok challenge here is like how do you how do you actually thread this needle and and you know, go on this charm offensive. But then, as the story UM explores, the

charm offensive is only directed at certain people. There's other people that the charms definitely just not going to work on, and so they're just like steering entirely around them. But josh the other thing to kind of mention here is actually just the scale of the lobbying ambitions, because I think that's the other war partner, because it's like there's like an r o I here where I think Kiktok looked at it was like, you know, we kind of

need to show up. But maybe not show up for like a decade, like you know, Facebook is just like in football game. So Josh talk to us about that strategy, because it does look like it's been very u tactful. Perhaps. Yeah, absolutely, I think that tik cook is it's a much younger company than Meta, UM and some of the other Silicon Valley companies that are getting into trouble. So it's been

scaling up UM since scaling up pretty pretty rapidly. Uh. They spent UM about two point one million dollars on lobbying in the last period, which UM was that's I think a year to date or I'm sorry, that's a second quarter, and UM, you know that's not Meta scale, but that's pretty significant. UM. And I do think that the interesting thing is, while they didn't say, UM, the

company doesn't say this on the record, UM. Part of the reporting in this story, UH is that the company kind of realizes there are certain people that it just has no chance of convincing, and it's saying, UM, you know, we just don't want to just meeting with Josh Holly or meeting with some of the other kind of especially strident critics. There's just no margin for us there and so we're going to focus on trying to get someone to listen to our story, and maybe there's just gonna

be people who won't do it at all. So what's this potentially look like, Josh in d C Like, I mean, it could have one outcome if Democrats UH stay in power. It could be another if they lose seats uh and things go to the GOP. What what kind of do the little game three for us? What does it look like? Yeah, I think there's a couple of things to watch here. Number one is to watch UM Scipious, which is the inter agency panel that looks at foreign investments that might

have national security implications. You all might remember that there was a Cipious review started in the Trump administration looking at TikTok's connection to the Chinese government and whether or not UM Bite Dance, their parent company based in China, should have to divest TikTok entirely. UM. We do have some reporting that the company is nearing a deal with Siphius that would allow it to not have to completely divest.

It's not completely separate from Bite Dance, so that would be a good UM, that would be a good outcome for them. It's a little bit less tied to partisan um to partisan concerns, And in terms of what happens in November, if you see Republicans take over, they just the most harsh critics are coming from the GOP side. So I do think that for TikTok, just in terms of the public drubbing, a Republican victory might mean more of that. What's the worst case scenario, Joshua here, I mean,

you can't really ban it, could you. Well, if if if the Cifius decision goes in a way that isn't kind of as as indicated it seems to be going, and they did have to play divest um, I mean that is that could be pretty disastrous. Um. There's also some there's also some discussion the Biden administration looking at UH an executive order, which could, depending on its wording, severely restrict the amount of data on US citizens that a Chinese owned company could collect. Um, a social media company,

they all collect a lot of data. UM. We don't know what that executive order would look like, but that could also be a pretty serious threat. UM. So I think those are two things in the near future to watch out for. UH. And you know, I think that the cifiest thing is totally the elephant the room, because if they had to divest this or or you know, end up to another ownerships or something, you know like that would just be you go from being number one

to something else. I know a company that would really like that if that happened. Rhymes with Facebook platforms, I believe, Yeah, thank you, sorry, And I guess what would happen is what has happened now for a lot of geriatric millennials like myself, which is all the tiktoks you end up seeing are the ones that are on Instagram that people repost there. Oh my god, we're living in odd times. All right, we gotta run. Josha Brewstain, technology editor at

Bloomberg business Week. I just love going to the Congressional football game, though. Man, this is how it works. Indeed, and that, of course, was the editor of Bloomberg Business Week. Jill Webber. You are listening and watching Bloomberg Radio. I'm roam mac a journal. Yeah, but you let me drive? Oh no, no, no, who's right? Please, I'll do the dravel. I want to drive. It's good question drive. This is

the drive to the clothes on Bloomberg radio. All right, everybody just got about ten minutes left to in today's trading session. Did you just say Disney shut Yeah, Disney, We're just getting used. Disney is shutting its Florida theme parks tomorrow and Thursday. This is Hurricane Ian Bears down on the stage. Yeah, certainly makes sense to be careful and obviously mid what is expected to be a pretty

pretty rough storm. All right, let's get to it. Uh, certainly been a rough year when it comes to the market, certainly if you're trying to be bullish, because it's certainly been one for the bears. Jimmy Lee is founder and chief executive officer at Wealth Consulting Group. Two point nine billion in asset's roughly under management, once again, joining us on the phone from Las Vegas. Jimmy Lee, how are

you great? How are you You're great? Jimmy? Do you still have two point nine billion dollars in US that's under management? Are you growing those? Au? M? Well, we're sorrying our best. Let's joking about this market environment. You know,

it's a very tough time right now, as we all know. Um, there's a lot of confusion out there amongst investors and with I think it's really about yields and how I interest rate your going up and as we know, everybody's trying to predict, Um, you know what the Fed's gonna do.

Are they really going to do what they say? And are we going to have the FED funds rate go up another point point in the quarter and and and if that were to happen, is it going to be too late in terms of a potential for any kind of a soft type landing and what we cause a really bad economic downturn? So I think that's what the debate is right now. Obviously, the market teetering on the June lows and the next few days I think will

be important not just for equities but also for fixed income. So, Jimmy, what we love talking to you for a lot of reasons, um, but one of them is because you're talking to clients all the time, and I'm I'm wondering what your email inbox looks like right now? You know what what's happening is the phone ringing off the hook? Are people concerned? What are your clients saying? I've got some great stories for you. So, um, you know I've been in the

business since so for over twenty seven years. I have some clients that I still work with day that we're invested with me to the dot com bubble back in you know, two thousand to two thousand and two, a lot of clients that were invested through the financial crisis

awight O nine. And then I will say that there are a few few clients that I have personally that I worked with, um that I've only been working with for the last few years, that are expressing a lot of nervousness and literally over the last day or two, and so, you know, I think they're you know, that type of anecdotal evidence. And I'm sure I'm not the

only advisor that is having that type of experience. And so what I'm trying to point out is that the investors that have experienced declines much bigger than what we're going through today, because right now on SMP, it's not even a typical bear market yet, right, but I think that some people that don't have as much experience are

starting to capitulate a little bit. So I think we're somewhere between even not panic quite yet, but we're getting close to that emotional, you know, behavior curve where people start to wanting to sell, and so I think it's it's really important and we've been telling all of our advisers recently that to double up on all the communication with existing clients and and for our business, it's also a great time to go out and find new people

that need to guidance. Um, when you say it's a typical bear market, what because of all the bouncing around or or what, Well, when you get a typical bear market, I mean the SUPs down the third or more. So we're not even close to that yet and I'm not saying that this can't turn into that. And I think that's what the debate has been, whether we go into a recession that bear market is going to look more like a third or more, right, And so is that what's going to happen? And I've I've been on the

side of I'm hoping it doesn't happen. I think that the consumer is still strong, but you know, the Feds trying to regain some credibility for not increasing interest rates sooner and if they're going to be bullheaded and just kind of destroy the economy at it at the same time, and we're starting to see some ripple effects, right, We're wide with interest rates in different places. I think in

places like you know, um, Italy. In the UK, it's more about sovereign issues versus what's going on here with the FED. But you know, we're seeing yields pop in the UK at levels that we haven't seen before in a very long time. Here in the US, I can't remember when we had a four percent, you know, fort term interest rate for cash and um. And also I can't remember when I really believe that buying bonds were a good opportunity. So we've actually added to our Jeffery

dunlack Is is finding some interesting that. Yeah, well we added to duration on our bond portfolios too recently by adding some treasuries in the seven to ten year maturity range. Interesting. Um, if you said it's a good opportunity right now at actually provide guidance to newer, newer clients, newer customers. Are you getting new money in this environment? Absolutely? Um. I mean for us as advisors, money is always in motion during times like this, So how are you pandemic? Well,

we're dollar cost averaging. So in my notes, that's one of the things that we're still going back to the old fundamentals, right some some things that have always worked. So if you got dry powder, I wouldn't try to predict today to be the market low. But adding in today's levels, if you're long term investors, you have a three year time arising or longer is a very smart

thing to do. If you're a retiree and you're being forced to sell your investments at a loss because you need to spend on I think you should go interview a new advisor because you should have a strategy in place that that doesn't, you know, force you to do something like that. So most a lot of advisors have, you know, reserve accounts set up for for spending for retire reasons. So I think it depends on the type of investor you are, but certainly for people that are

trying to accumulate, well, these are good times. You in your notes that you shared with our producers and our team, you said you reminded us that on September twenty second, we've got a market signal where over six of American Association of Individual Investors survey were bearish in previous readings. When this happened, the average return till months later was thirty for the U S in p five. Okay, Yeah,

that's a pretty significant UM metric. How should we be reading it at this point where we're still waiting for full market capitulation just quickly again, I mean that's another that's another sign. So when when everybody's barish, it makes me feel like it's not that easy to make money in the market, whether you want to short it or

go along. So that's assistic. I think supports the view that you know, we could get a pretty decent rally now again, if we get some inflation reports that are less than expected before the year end, and somehow Sherman Powell starts to change his language a little bit to make people think that they're going to pause sooner than we think today. Yeah, we could have a huge rallies at the midterm election. So that's what I would say, So it would be optimistic and think about the long sort.

Which makes me wonder whether Charlie Evans, who talked to CNBC like opened the door a little bit to that. Um, I don't know whether we should read too much into it. I think there's a lot of debate. Hey Jimmy Lee, um, I always good to talk with you, Founder and CEO of Wealth consultant group roughly two point nine billion, and

now so it's under management. 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