Vaccine Could Reduce Stress for Parents, Children

You can also listen to our radio show at two pm Eastern Time on the Bloomberg Radio or watch us on YouTube. Searched Bloomberg clovel News, Tim Stuck and Katie Graydfeld live in the Bloomberg Interactive Brokers studio in New York. Katie, you and I were talking just a few minutes ago about this one incentive that Mary Bill de Blasio is offering parents of students, I should say, five to eleven year olds Thursday at city run sites where kids are

eligible to get their shots. Yeah, it's interesting that they're moving forward with in incentive. You know, there's a lot of opinions on both sides about whether to vaccinate children, and it's interesting to take see them taking the carrot approach. What about the incentive about mental health, because that's something that our next guest has a lot to talk about. Dr Tamar Mendelssohn as director of the Center for Adolescent

Health at Johns Hopkins Bloomberg School of Public Health. The Johns Hopkins Bloomberg School of Public Health is supported by Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies. Dr Mendelssohn, it's great to have you on the program. Can you talk a little bit about the connection between mental health and where we are in the pandemic, especially among the youngest and I would say argue among the most vulnerable people in our society. Yeah, well, hello, and

thank you for having me. So clearly the pandemic has been a time of incredible stress for families, and that includes young people. We've seen the data that rates of depression and anxiety and suicide increased for young people during the COVID pandemic. So this is terrific news that we have this vaccine that's now going to be available for

kids between the ages of five and eleven. Enough, around twenty eight million American children, So The hope now is that this vaccine can help us with more of a return to normalcy, can help reduce parents stress, and allow young people to have more in person interactions with family and friends, and hopefully that will help everybody's mental health. And I'm curious, you know, where do you think this

has to come from? Because obviously Tim and I have been talking about the fact that New York City is offering one hundred dollar incentive to get kids vaccinated. I mean, would you expect to see more of those types of bonuses or incentives rolled out across the country. A is uh, you know, we try to improve vaccination rates among younger people. I think working to improve vaccine uptake for parents, um, and you know, sort of getting parents confident and comfortable

vaccinating their children is a really really important thing. And I think a lot of us have been bombarded on social media was all kinds of misinformation, so people are confused, they're not may be sure that they have all the right information, and so I think it's really important for us to do the outreach, to do the work to answer questions and bust myths so that you know, parents feel confident. What's the right way to do that because I I shared this story last week, but I'll share

it again for those who weren't listening. I was at the doctor speaking to a healthcare provider last week and we were just making small talk because I was about to get my blood drawn, which is something I just cannot stand to happen. And she was saying that she has kids who are between the ages of five and eleven. I said, Oh, you're so lucky, because they'll be able to get vaccinated soon. And she told me, and this is someone who works at a hospital, Oh, I'm not

going to do it. I'm gonna wait, what would you say to her? So obviously it's a parent's personal decision. But all the data and all the infectious disease experts UM that I've interacted with have really highlighted the incredible benefits that the vaccine has to offer. And really, I'd be much more nervous as a parent not getting my

child vaccinated. And so Dr Mendelssohn, I want to talk more about UM the mental health aspect of this, and child and adolescent mental health in terms of you know how obviously the pandemic has taken a toll on all of us mental health wise, but you know, particularly those young people, and I'm curious you know to your point that getting vaccinated the return to normal that could improve mental health. Um, I mean walk us through that link. Is that just because you know we'll be able to

go out and socialize more. I think it can really reduce some of the stress that is affecting families because parents may be vaccinated while children below the age of twelve are not vaccinated, and this can create the anxiety around what kind of family gatherings can we have holidays? You know, how can I protect my children while still living life and trying to return to normal in some way. So I definitely think the vaccination can help families have

that extra confidence. I also think that the more we can return to a semblance of normalcy across the board at schools and so forth, the more that children and teenagers can kind of get back to the business of their development and focus on, you know, socializing and growing emotionally and the things that really they need to do at this stage. Dr Mendelson My son was fourteen months

when the pandemic hit. He's almost three now. He thinks everything is hand sanitizer and he knows how to put on a mask, and I just think to myself, this is like a pandemic baby. This is going these are going to be his earliest memories. What are long term thoughts on that? And just in the last thirty seconds that we have. Absolutely there's going to be a lot

of shared generational experience with this pandemic. I do think young people are incredible and resilient, and you know they are going to be fine, but many young people have coped with serious trauma like losing a parent. So for those young people, we really do need to make sure that they have the mental health and emotional supports that they need to thrive. Dr Tamar Mendelssohn, director of the Center for Adolescent Health at the Johns Hopkins Bloomberg School

of Health, joining us on the phone from Baltimore. The Johns Hopkins Bloomberg School of Public Health. It is supported by Michael R. Bloomberg, the founder of Bloomberg LP and Bloomberg philanthropist. Katie's something I've been thinking about a lot, just what it looks like on the other side of this, or if this is something we're just gonna continually be dealing with. Absolutely almost feels like we're in purgatory. Yeah, that's the way a lot of people think about it.

I think this is Bloomberg Radio, and this is Bloomberg. This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Well, it's Bloomberg's Big Take today, the very best of Bloomberg's in depth original reporting from around the globe. It's written by Jillian Tan, scenior reporter at Bloomberg News. She joins us here in the New York City Bureau. It's all about soft Bank's Masioshi's son. He cannot pay enough talent enough to keep

Vision Fund talent so happy. As the Japanese company prepares to distribute profits in December, some of its key startup investors have headed for the door. Jillian joins us. Now, Jillian, before we get into what exactly is happening at SoftBank's Vision Fund, can you give us an idea of how venture capital venture capitalist partners are traditionally compensated. Yeah, so, just um also to just jump in, I worked on this with colleagues in Japan and on London. I don't

want to take it away from them. I wasn't the only author, but capital partners are traditionally compensated with up carry, which is essentially a distribution of profits. So for example, let's say, way way back in the day, if you were to invest in the company let's say Facebook, UM, and it went public and your fun were to make X amounts, you would be entitled to roughly of those profits.

And so what's different at soft bank and how they actually compensate their employees and why is that leading to these defections? Yes, so we have reported that since I think last March, there have been seven managing partner exits and the firm sole senior managing partner UM is set to exit by the end of this year. UM. One of the key reasons is they have an eccentric approach

to pay and carry. And what we've reported in terms of the December distribution, that's the first carry payment that any of these folks or the folks who are left should I say, they're going to be receiving from the hundred billion Vision Fund vehicle. And if you think about it, these are names companies that have invested in include like Door, Dash Cooper, which is a big Korean company, h uber A Garden Health, which is a healthcare company that found public.

Just you know, dozens and dozens of companies that have now gone public that these guys haven't seen, guys and girls haven't seen any profits from. And there have been some mrs too, though most notably we work, Yeah, we work and a little company called Greensill, which is a little bit of a disaster that obviously, you know, I think it's very clear and soft Bok reports this um the Vision Fund is in the green um. It just hasn't been really compensating. It's senior investment staff. Well, that's

what I'm curious about. Whether this his you know, slowed soft bank down at all, because you know, I was saying to him, it feels like they have a footprint in everything. It still feels like every other week I see a headline about a new investment that they're making. Yeah, almost daily now sometimes it feels like honestly, um, but no, it hasn't slowed them down. They're now investing out of

Vision Fund to which actually has no outside investors. One key seeing Vision Fund one was backed by sovereign wealth funds out of Saudi Arabia and Abu Dhabi. Or el Vision Fund, who was purely soft Bank capital, and then also Martha's Sons Capital, which is which is one of the reasons he justifies taking a large portion of returns from that right exactly, which is also why he you know, doesn't want to pay out out of self banks profits to staff is he obviously wants to retain that himself

and also shareholders in the public company that is Self Bank. Okay, so what do compensation experts tell you about what's happening here and also where are these defectors going? Yes, so we spoke to a bunch of effects. That's obviously it's pretty clear if you don't pay enough, people aren't going to stick around. UM people going to various places. One managing Partners starting his own new firm. Another two went to Gore's Group where they invest in companies and they're

sort of leading a spack effort across there. Another has left, I think to write a book and it's just you know, hasn't exactly said what they're up to next. And another one joined a company called Naspers, which is um a big South African based UM giant. And just finally in the last twenty seconds that we have with you, Jilian. It's not like they're not getting paid much if they're staying there, because junior and senior level salaries are high.

They're five seven hundred thousand dollars. Yeah, I know, it's a regular table, like regular amrians, just like regular people around anywhere. Um, these aren't small salaries. Cash salaries obviously very high. It's just to carry you know, they would be expecting tens of millions that they're just really not getting at this point. Well, it's a great story. Jillian Tan co wrote it with two of our colleagues around

the world. It's stays Bloomberg Big Take. Check it out on the Bloomberg terminal and of course at Bloomberg dot com. Jillian tan Senior reporter for Bloomberg News. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Well, it's the cover of the brand new edition of Bloomberg Business Week. It's available now on news stands and at Bloomberg dot com Slash business Week. The cover, jol is all about twenty three

and me. It wants to use its customers genetic data to beat cancer. This story is by Well. This story is by Kristin Brown. And joining us now is Joel Webber, editor at Bloomberg Business with He's with us in the Bloomberg Interactive Broker studio. Tim and Nette one of the editors on the piece. He's on the US Healthcare team and he's US Healthcare Team leader for Bloomberg News. Joining us on the phone from New York City, Joel twenty

three and me. A lot of people recognized the company found founded uh by headed by in Wachitzki as the company that you spit into a tube, you send it off and you understand more about your own ancestry, your own your own family history. Have you done it? I have not? And that was all, you know. The genius part of this business is, I think Kristen's story goes into is that a lot of people did, like millions

of them. And when that project started ten plus years ago, it was just about like, hey, where did you come from? What's your what's in your d na um? And it seemed really you know, innoculus, But there was a master plan all along. What was that master planned? Tim? That was go ahead? Tim Andette? Yeah, sure, So the master plan was to become a pharmaceutical company. Right. Um, as we say in the story, UH and with just has

sort of had this vision from the very beginning. She even wrote it down and one of her investors had it framed and they gave it to her later on. It's it's um you know, remarkable story of consistency in a lot of ways. You know, they sort of stuck to what their vision was. And now they are sort of in a position now that they have all of this data from all of those people who have been into those tubes to move forward with it. And so how does twenty three and me actually execute that vision?

How do they go from you know, sort of a fun service you spent the two of you pay and you analyze your ancestry to you know, a full blown pharmaceutical company. Well, so it's a lot of science, right, just like any drug company, They're going to have to go into the laboratory and they're going to have to try a lot of things out. And as we know from UH pharmaceutical history, a lot of things that you've

take into the lab don't work out. It's a little better than one in ten chance that any drug is going to get to the market from its initial conception. So twenty three and me is betting that they have all this this genetic data, and genetic data is very valuable because it can allow you to sort of take

some shortcuts in that development process. You've got a lot of numbers you can crunch to try to find both things that you could possibly drug right, things that are you know, ailments or um defects that drugs could target, or you could find ways to use old drugs for new things. I don't think Tim that people who did this originally over the last decade realized that what they were doing was potentially contributing to a different vision of

the company. And I'm wondering what the company says about that and how they reconcile that. Well. I think, you know, the thing that they say to people is that, you know, we're a healthcare company and we want to help you use the information that can be found in your genetic code, uh to make you well, to make you better, and uh, you know the I think the the other side of this is that, you know, thousands of people participate in clinical trials and everything. There are different um sort of

you know, levels of consent with these things, um. But but you know, they they make the argument that we have this data and we can act on it, and we can get things to you faster than others might be able to. So this, this idea of using genetics to actually make drugs is basically untested. That they're the

first company that will be kind of doing this. And what's their pipeline look like, Tim, Well, they've got up pretty pretty good pipeline for a company that's been you know, sort of not doing this for a terribly long time. Over the past year, they were able to sort of double the number of candidates they're working on. They've got about eighteen now. And bear mindus is at a time when you know, a lot of people were are not working in an office. You know, there are people were

all spread out like many companies. And at the same time, a lot of drug companies were having trouble recruiting for clinical trials and stuff. So they've been able to sort of do a lot of this data work over the past year, even when other sciences slowed down. It seems like, I mean, you guys write about this in this story right the valley of death between the idea of getting

something approved versus actually developing the drug. It seems like another avenue that could happen is twenty three and Me gets bought by a bigger pharmaceutical company, and then that bigger farma company can then use that data explain partnerships, how that's working, and how potentially some of the companies that it's partnering with could end up being competitors. Sure, so they have a notably, they have a partnership with Glacksow Smith Klein Um. That is, um, you know, these

companies are working very closely together on treatments. But you know, in the competitive landscape of farma, as we all know, there are lots and lots of deals that happened, um you know, companies buying other companies, but also there's licensing deals, there are partnerships. There are many companies out there that remains freestanding companies but partner with rival companies on what

are oftentimes their biggest selling drugs. Right, So, the commercial flavors of this to go in a lot of different directions. For twenty three and Me, I mean, twenty three and Me is still a relatively small company in the forming universe, right there, like a five billion dollar company right now. You know, a lot of the biggest companies in the in the space are you know, hundred billion plus in

market cap. So UM, you know, they're a mino for sure, and they're gonna need help, but they're getting it from companies like black So that do have mass and do have commercial know how and and production know how and all of those things that you know, younger drunk companies really need when they're when they're starting and so still a small fish twenty three and me. But I'm curious, I mean, are there any other companies trying to do what they're trying to do and do they have the

same huge database THEE and ME has. I mean, I did the company that has the most similar databases Ancestry right that they're not really doing this, um. There are lots of other companies out there that are using genetic therapies for different um therapeutic purposes, right Like You've got Maderna for example, that it's RNA technology is behind the COVID nineteen vaccine. UM. There are also companies out there

doing things with gene editing with crisper Um. There's a really interesting technology called RNA interference that a company called al Nylum is a very big and so there are a lot of different kinds of sort of genetic technologies out there that companies are trying out. So, by the way, this Minno was a startup, a spit tube startup. Now it's a publicly traded company and went public via spack earlier this year. What do the market think about this?

This company and Tim, we only have about thirty seconds. I mean they've been pretty well so far. Right, They've grown since they did the spac deel and and they're probably the shoot yeah, yeah, they're is more profitable. I mean they have a big commercial business, right that has like Super Bowl ads and stuff. So um, that's the thing a lot of drug companies don't have, is just some recognition. Well, it's a great story. It's written by Kristin V. Brown. It's the cover of the new issue

of Bloomberg Business Week magazine. It's available now on newsstands and at Bloomberg dot com Slash business Week. A big thank you to Timinette, us healthcare team leader for Bloomberg News. He joined us on the phone from New York City. Also joining us in the flesh here, Innie Bloomberg and actor Broker Studios, Joe Webbert, editor at Bloomberg Business Week, you're listen to Bloomberg Radio and this is Bloomberg. This is Bloomberg Business Week with Carol Messer and Bloomberg Quick

Takes Tim Stinovic from Bloomberg Radio. So on Tuesday, Zillo Stuck tumbled after It's stunned the real estate industry when it said it was shutting down its home flipping business after racking up losses. Katie had me thinking a lot about what that says about Zillo's model, Also if it says anything about what's happening with the residential real estate around the country. So a great time for us to check in with somebody who probably knows more about residential

real estate than almost anyone. We talked to Dallas Tanner, the president and CEO of Invitation Homes. It has more than eighty thou homes. It's the largest owner of single family rental homes in the US. Right now, Dallas joins us on the phone from Dallas, Texas. Dallas, how are you. I'm doing great, Thanks for having me today. Yeah, thanks so much for joining us. Well, let's start with what happened with Zillo and perhaps how the invitation homes model

is different. But what was your reaction when you saw that news from Zillo earlier this week? You know, candidly, I was surprised, um, given the fact that the I buyer space has continued to get more and more robust over time. Uh, you know some other competitors. I think you've done a really nice job managing inventory. And like, now, with that being said, I couldn't tell you. We don't know all the details as to what happened. And Zella has a pretty deeps business right in terms of some

of the other services that they offer. So my guess is strategically internally, they're probably looking at, you know, where their strengths and weaknesses were and ultimately made the call that they did. But with that being said, the housing market, it's fundamentals, uh, you know the supply chain right now that the balance of supply that we have quite frankly relative to demand are all lending itself to you know,

a market that feels really strong. And I think they said as much even in their in their earnings called. So you didn't see the Zillo news and you're, according to your own metrics and internal metrics that you see as any sort of canary in the coal mine about the housing market in the US. No, not for US. I mean you got to think about the volume. I I don't know their exact numbers in terms of how

many of the homes they had on balance sheet. I'm sure somewhere between ten and twelve thousand or something like that. But that's such a small percentage of the six and a half million resales that we see every year UH in US single families. So no, I wouldn't look at it as a barometer of something that's going on the marketplace. Fact, I kind of think the opposite if you look at you know, some of their competitors, if you look at

our business. You could look at anyone really in single family, if you're a home builder or a SFR operator like we are, or we're having record occupancy occupancy, record revenue growth because rents are so um in demand right now in terms of having that flexibility of lease, and so we're actually seeing the opposite in our business. And Dallas the company said that back in February that uh IT planned to spend at least one billion dollars buying properties

this year. And you, I mean you touched on it that just if you look at the housing market, uh, the supply of homes, uh, it's it feels like it's really dwindled. And the housing market has just been on fire. So in terms of spending that one billion dollars, has that been difficult to even find houses to buy? In terms for our business invitation homes, you know, it's been interesting.

We actually updated guidance this last quarter. We're gonna be somewhere between a billion seven and a billion eight this year, in turn is of new acquisitions, so we've actually outperformed what was our initial you know kind of targets. Now, with that being said, yes, the market has some supply challenges, there's no doubt about it. Although we are seeing supply creep back into the resale market um at a little bit better clip than we've seen historically. With that being said,

it's still at an all time low. You have interest rates that are still I think I saw the day of the thirty year is that just north of three percent. That's still really cheap money, cheap availability of finance for those that can qualify for mortgage. So it's actually I think keeping the supply pretty tight because homebuyers. Again, those six and a half million resales we talked about those are still going. You know, those two end users would be my guests at the end of the day. So

we pick our spots. Were very deliberate about where we invest capital and why we have partners with a number of different homebuilders we're helping bring new supply to the marketplace. So we've we've definitely kind of had to you know, be deliberate and and really anchoring on our different channels for acquiring product. But we've been able to do it, albeit it is a tough environment and we have to

be you know, consistent in terms of our approach. Dallas, is there a time or a price where you see homes in the United States on a whole becoming so expensive that you're no longer in an acquiring mode. Well, there's always cycles, right so you could certainly see a you know, at some point there could be a cycle where homes get to price based on your investment criteria of where you want to invest capital. Why doesn't feel

like that right now? We can still buy homes at a really attractive you know, what we do as our own cost of capital relative to the types of yields and things that we can find in the marketplace. Now will that last forever? Time will tell. Trees don't typically

grow to the sky. But I think the difference in our business, it's very different from an eye buyer from somebody else, is that you know, our customers stays us for three plus years right now, They renew two or three times there at least with our with our business, and they actually love the service. They want to renew because they like the flexibility of the leaks. Totally different than a home flipper or somebody that's just in and out of a marketplace really quickly. That's not our mod.

We're long term investors. We're making decisions for five, ten, fifteen year horizons and we want to make sure that we're offering a product that's sustainable. So the approach of the different business models are very different. And so Dallas, we have just about thirty seconds left. But you do have a big footprint in the Western United States, you know, Texas, Florida. Do you have any plans to expand outside of that great question. Yes, our revenue comes out of the West

Coast and parts of the Sun Belt. Um, we love markets like Austin, you know Salt Lake City, Nashville that we don't currently have footprints in that could be potential markets for us to expand into over time. We'd have to have a really good entry point and find a way to get the scale that's meaningful for the way that we like to operate our business. Dallas Tanner, You've got to come back and spend some more time with us.

A great conversation, President and CEO at Invitation Homes. The stock, by the way, Katie has been on a tear this year, higher by more than thirty seven percent. Dallas Tanner joining us by zoom from Dallas, Texas. This is Bloomberg Radio. You're listening to Bloomberg Business Week. Yeah, but you let me drive. Oh no, no, no no no, this is not a toy home. Please, I'll ride gravels. I want to drive the question. This is the Drive to the Globe

on Bluebird Radio. Yes, indeed, under ten minutes away from the market closed on this Thursday, November four, Looking like we're headed for another record on SMP five hundred, higher by three tenths of one per cent. Right now, let's drive to the close with Eddie Perkin, Chief Equity Investment Officer for Equity Eddie and Vance joining us on the phone from Boston. Eddie, how are you good to be with you? Hey? Help us make sense of of what

exactly is happening in the markets right now. It sort of seems like, based on what we saw yesterday in the bond market, in the equity market, Wealth Chair Power was speaking while that release came out that everything was kind of perfectly communicated by the FED. Yeah, you know, I do. I do my best lateral thinking when I'm exercising, and I was in the gym yesterday thinking about Matilda.

Matilda is the world doll book from canad eight made into a movie by Danny DeVito and ninety six, and the girl, the title character in that has telekinetic powers that she can control objects. And I just thought, this is what the Fed's trying to do with the economy. They have this Matilda envy where they're trying to control every element of what's going on. It's such a complex adaptive system the the economy that I think there's a

level of Huberts there that's concerning. And I think investors have a form of Stockholm syndrome where they're um happy to be Fed. Uh, this very explicit um direction of how the economy is going to go from uh from Chairman Powell, and the said and I worry about that a little bit because I don't think you can control

something like the economy with that level of decision. Well, Eddie, one one message that chair Pal really is trying to control is that he's really trying to separate the tapering timeline from the rate hikes schedule that okay, pretty quick taper planned of their bond purchase program. Uh. He's trying to drive home the point that that doesn't imply any sort of timeline for the rate hike schedule. Do you

believe him? And does the market believe him? I don't believe him, and the market definitely does not believe him. I mean, you look at the futures curve for FED funds to futures, and it's between two and three rate hikes in two. Given where inflation is running right now, it's hard to imagine they'll be able to taper without raising rates. Goldman was out with a call earlier in the week that they think there'll be two rate hikes in two. I mean, it could end up being more

than that. It was always it was people like Bill Bedley, former New York uh head of the New York Fed, that who said that once they do start raising rates will have if you if you wait longer than you should, then you're gonna have to raise it's by more than you originally intended. So UM, I do think rate hikes are coming, and I think the equity market UM probably

won't take that well. I mean, like we said a moment ago, the equity market investors, I think are happy to be spoon fed this talk from from the Fed. But once rates start going up, that's usually not good for equity prices. So what's the best way to be positioned here? I think you need an element of defensiveness.

My favorite sector right now is consumer staples. I think they for the most part, not every company in that sector, but many have strong brand, strong pricing power, so as some of the input costs freight cost pressures move higher, they can pass that through to their customers and still maintain good margins. And then I think commodities are going to be beneficiaries of inflation. So oil, which everybody hates for all kinds of reasons, it's been the best performing

sector this year and I think it continues to move higher. Um, you look at where, uh, the energy sector in the SMP right now is about two point eight percent of the index. If you go back to two thousand seven, two thousand eight, when the oil price was around the same level it is now, it was eleven percent of the SMP. So, Um, there's a long way to go to get back to where we've been historically on energy

and it's a contribution to the global economy. And so Eddie, you are the chief investment officer for equity, but I want to hear how you factor in the bond market. If I think back to the beginning of this week, there was a lot of consternation about the fact that actually bond volatility it's pretty high right now. If you look at the move Index, especially compared to the VIX, which has basically been sleep walking. I mean, what signal do you take from that. It's always a little bit

concerning when different asset classes are telling different stories. Particularly as an equity investor, we get concerned when hi high yield spreads widen out. You're not talking about that, You're talking about rates. But um, uh, you know, you look at what's happened in Australia, where the front end of the curves has moved up significantly in the last month, and you say, you know, maybe maybe the bond market is starting to get a whiff of higher rates, higher inflation.

I'm still not convinced the long end of the curve has to move as high as everyone seems to think. I mean, most investors are convinced that the long end long treasuries have to have to go higher if you've got inflation. But people have been making that call for ten or fifteen years and it's been wrong. So I think you've got to respect the market a little bit and maybe you get inflation without the big move in

government bond deals. M Okay, let's talk earnings, because we are in the midst of earning season and we are expecting certainly a slew of them after the bell E Speedy, Airbnb, uper Pelton, Pinterest, carbon A, Live Nation, Novavaccine, Square, just to name a few. What is the pattern that has emerged when it comes to equity, When it comes to earnings from the S and P five companies that we

follow so closely, it's been a good earning season. After today will probably be about eighty five percent done in terms of the market cap that has reported. Uh, it's most companies have beat. In the US, companies stan really beat because they're very good at guiding conservatively so that they can beat UM. The interesting thing though, is the reaction of the market has been a little more mute

did then in the past. So unless companies have been on both earnings and revenues they have, they've generally underperformed on the day of their earnings reports. So the market has been very strong over the past months while company has been reporting, but the specific individual companies that have reported have generally been met with at least a one day underperformance unless they've they've really blown numbers away. And

how do you feel about big tech right now? Because thinking about the earning season ongoing, but I'm thinking about you know, Apple, Amazon, UH, disappointing on that front. It feels like it's been a tough go for the things. How are you thinking about that group? I think there

are better opportunities in the market. I mean, those are all great companies obviously, but they're so well represented in the SMP in terms of their their market cap that they're you know, every time people put money into an index fund. They're buying those stocks. I think, you know, some of them are somewhat expensive despite being great companies.

I do think, uh uh, you know, they are things that have have pricing power, have growth, and so um, they're they're good companies, but I think there's a better opportunity elsewhere from the evaluation perspective. Eddie Perkin, We're gonna have to leave it. Their chief investment officer for equity yet, Eaton Vance joining us on the phone from Boston. Eddie, thanks so much for taking the time and joining us on Bloomberg Business Week. 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.