Wall Street's Epic Bonuses Are Back

Bloomberg Business weekn iTunes, SoundCloud, or Bloomberg dot Com. You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio or watch us on YouTube search Bloomberg Clovel News. We are seeing the world reopening again um post a Macron. But let's not forget that the full impact of code on our well being, Tim will be felt for years to come. And I'm talking about our health and also our mental well being. Yeah,

it's certainly taken. I think become an increase in sharper focus over the last couple of years during the pandemic. Let's talk about it with Angelina May, licensed mental health counselor also the executive director of a MFM Healthcare. She joins us on the phone from Washington State Angelina, how are you hi, I'm greats wonderful to meet you, Carol and Tim. Thanks for having me on the show. Yeah,

thanks so much for joining us, Angelina. And I'm wondering, what can you tell us about the way that mental health issues have increased during the pandemic. What's the data tell us. Well, it's telling us that things are of urgent needs right now and we really need to have significant interventions so we can really meet the needs of Americans. Um, we've had a significant um increase in depression of anxiety

among adolescents, adults, and even UM our elderly population. Can we talk about adolescents in particulars having a conversation UM with someone last night talking about their toddler and that they were so glad to actually, I think it one or two year old be able to get them into a school because they needed socialization. It was good for everyone. What is potentially the lasting impact of our younger generation? Our kids are really young kids if they're not socialized

properly at this age. Yeah. Absolutely, And this topic, like you brought up, you were just having a conversation last night. It's on the minds of a lot of Americans. Right now, and we've seen I think we just to take a step back and recognize we've gone through a collective trauma as society and the impact has is going to be seen for years. So particularly for young children, UM, they've

been hit harder by this trauma. Thinking that you know, as adults, we've had decades of kind of security and normalcy that we can put this into perspective, But for adolescents, children, UM, this really has essentially impacted their life. And then when we look at like you mentioned, the kind of social skills and developmental stages of not having that social interaction or having different platforms, you know, socializing through UM virtual platforms,

it's been very challenging. And I think that you know, kind of the core of UM, of one of our human needs is that connectiveness with others, and that leads to like security and belonging and and so that's why we're seeing a lot of the increases around UM depression, anxiety, even with younger children. Angelina, I want to talk a little bit about the role of social media. Here we are today Meta Platforms, the company formerly known as Facebook.

It owns Instagram and Facebook of course, UM. Where does social media fit into mental health. Well, there's that you know, when used um in a positive way, those social media platforms can be extremely helpful when we've had to transition our lives to you know, virtual platforms for connecting with others.

There's great um support groups and finding others that we can connect with, whether it's our hobbies and we think about a lot of our school activities have been discontinued or the book clubs we belong to and things like that. So we're using social media in those positive ways can help us feel connected to others that have shared interests. UM.

So that's a really positive thing. And then but also recognizing that when we have our soul um kind of interactions through our virtual platforms, then we um, we we miss on some of those needs of you know, physical touch and physical interaction UM and just being present um with others. And sometimes we're on social media. UM. I think we're all guilty of this is as being um multitasking kind a bit and UM so being really fully present and being intentional about that can really improve our

you know, feelings of connecting with others. I can't tell you how many times I've heard the word intentional. Uh recently, and it's it's a really good point because UM we are constantly kind of lauding people for being able to do a million things at once, and I think we just missed the mark in such a big way. Hey, I am curious, though, what kind of activity or demand have you seen for your services since the pandemic began, because you know, you guys specifically, you're a private behavioral

health treatment center. So I'm just curious what uptick and demand have you seen and what types of cases. Yeah, that's so that's a great question. So um M s M Healthcare UM really our program and our ganization is geared around meeting the needs of our our community. And so you know, even when we started twelve years ago that we saw a need for residential of people that have mental health and substance US and so we strive

to meet that need. And one thing we've done since the pandemic is, as we were talking about the virtual platforms and really seeing the need for continued access to mental health services UM is we launched our Mission Connection UM, which is a branch that offers UM Virtual Intensive Outpatient and PHP, which is UM they treatment. It. It consists of therapeutic groups during the day, individual therapy, psychiatric all

that can be done virtually UM. So that's an area that we have recognized you don't have a need for it. And then you know, broader from that, we see with

the UM there's been a great since the pandemic. It's just a greater UM burden on our hospital systems and on our first responders, and so a lot of times we see people going through you know, they're in a health crisis, they interact with the fire department, maybe end up in a yer, go to a crisis program for just three to five days, and then they're discharged back to our patients. So our residential programs, yeah, that's you know,

typically forty five days. They can really um fill that connectivity with others, really work on their underlying mental health and depression anxiety. It's a it's no, no, that's okay, we're running in a time, But I do. I think that's such an interesting point. It's like how we think about going to physical therapy when something goes wrong. We may not need it for a long time, but we need some help or acupuncture, and we need to think

about mental wellness in the same way. Angelina may thank you so much, executive director for a MFM Healthcare on the phone from Washington State. You're listening to Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stenovic on Bloomberg Radio. It is our most read story on the Bloomberg. It's also today's Bloomberg Big Take. It's a reminder. I guess you could save another era as big bonuses on Wall Street. Tim, they are back the stories by

Shrinadarajin and Hannah Hannah levitt shere joins us. Now he's finance reporter for Bloomberg News. He's what this is in the Bloomberg inactor broker studio. Okay, So let's let's talk numbers here because we're we're starting to learn and we did learn last week, uh, fifteen million dollars, twenty five million dollars, thirty five million dollars, just how much executives were paid in who got paid what, and how is

that different from recent years? Look anyway you slice and dice it when you look across the street, when you look at compensation levels from the most junior ranks to the most senior ranks, this has been the biggest windfall in the generation, you really have to go back to two thousand and nine, and in some ways it does feel like this is going back to the good old

days for rainmakers on Wall Street. We've gone through a stretch nearly a decade post crisis, where after inviting a lot of scrutiny and anger from lawmakers, especially in the wake of the crisis, when the big banks went ahead and rewarded some of their top talent in two thousand nine, a year after the federal bailouts that forced them to put a lid on how much they were paying these people. And we also went through a period of what felt like a little bit of a secular decline. Definitely in

trading all that change with the pandemic. There are some echoes to what happened in the crisis, government intervention, market stabilized, unleashed sort of this wild trading activity do you making bonanza in twenty they showed some level of restraint. They were printing record revenues and profits, but they were willing to gap how much they were willing to pay people because a they didn't know how long this would last, and be the optics aren't really great to pay people

top dollar in the middle of a pandemic. Moving to boom rumbled into a second straight here, but the conversation shifted to retaining talent, the war for talent, people getting fed up, tired and wanting to switch seats and frankly, much better opportunities elsewhere in the financial landscape that has forced the big bosses at the major US bank to

really open up their wallets. So was this going to happen pandemic or no pandemic or was it accelebrated exacerbated because of the fight for talent as some people maybe left the workforce andone elsewhere. You really struggled to make a case for this happening without a pandemic, because without a pandemic, there was no reason in the typical growth rate we've been seeing in trading and dealmaking activities for banks to be able to print the kind of numbers

that they did, whether they accepted or not. That was certainly this government intervention that started in March that a stabilized the market and then ensured that it absolutely zoomed ahead. And there is a very real argument to make that without federal support through the absolute depth of the pandemic, it wouldn't have happened. Can we talk about the coach we got? We got to talk about the coach because you and Hannah Levitt, who's the co author on that's

got some incredi information about Goldman CEOs coach. What did you learn about a coaching session that they had to prepare for congressional testimony? Just just to give our listeners a sense of what we're talking about, we do point out that not so long after David Solomon rose to the top rank became CEO at Goldman Sex, he was

preparing for a congressional hearing. And there is a process that's known as murder boarding, where effectively people executives at the firm will throw all sorts of questions at the top executive to try and give them a sense of what they can expect from lawmakers at the Real Deal. One of the questions posted David Solomon was would you be open to paying higher taxes if it went towards

spending on social services? At first, he fume he thought it wasn't the smartest question, but then the court said, you know, Jamie Diamond has been awfully public about this idea that he would willingly do it to which we understand Solomon said, of course Jamie can say that because he's made all his money. Why that is interesting is that it offers a little window into the mindset. David

Solomon is among the class of newly climbing executives. He's preached the top spot at Goldman Sachs in a very different era than when Jamie Diamond ascended to the top. And we talked about this new generation, this generation that's at the top right now. They have missed out on the richest reaped by executives and leaders who came much before them, and that shows in the numbers. Jamie Diamond is a billionaire two times over, and David Solomon is

not close to that. No one is saying David Solomon is not rich quote unquote, but there still is a difference. It's the sound of the times. Go to Bloomberg dot com and read the story. We'll put it out on Twitter Street down Rage and thank you so much, Financial proter rat Bloomberg News. This is Bloomberg Business Week with Carol Master and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio.

All right, well, in the New yatsh of Bloomberg Business read out in its entirety tomorrow online, on the Bloomberg and on NEWSSTANDZA story about the investors who have been backing Kathy Wood in our arcs array of E t F. They're sticking with our even as our flagship fund has plummeted big time. Tim They are what the headline refers to as true believers. Joe Weber is editor at Bloomberg Business. He joins us on the access line from Brooklyn. The

story written by Sam Potter, among others. Sam is Senior editor and E t F s R at Bloomberg News. Check out this story. It'll be featuring the upcoming issue of Business Week magazine. Also, you can read it now at Bloomberg and on the Bloomberg terminal. I tweeted out earlier today, Joel, what's happened with Kathy Wood's fund? We know we've covered the performance close, their audience is familiar with it, but something really interesting has happened. Um investors

are sticking with her, That's right. So it's um an interesting phenomenon when from peak, you know, I think it's down something like while S and P is up. Uh, you would think most fund managers who endured something like that, something like a sixty percentage points spread would see upflows. And yet that's not entirely the case with Wood. Um, it's proving to be really sticky assets. And why why is that? Why do we think that's to be true? Sam? Yeah,

I'm because afternoon everyone. I mean, the fact is that Chassie Wood has has really sold a story and narrative of the future that investors appear her investors certainly appear to really be on board with and to believe in. UM. I mean to give some figures to what we're talking about here. UM, the main fund, the ARC Innovation Fund, is down about so far this year. It's actually got positive flows, so it's got net inflows for this year

while it's poor. Um. The reasons are, you know, our BI guys like to do a lot of analysis on this, and they talk about how most invested these days are heavily invested into big index funds, big boring market following funds, and then what they do is with a little slice of their investment, they take a risk, they take a gain, or they want to put it on meme stocks or on crypto, and ARC seems to fall into this this

kind of bracket. They call it the hot source. So people have prepared to put their money in and leave it in, and even with these heavy losses, they're still kind of strugging and saying, you know what, I think, I think this might come good and even if it doesn't, come along for the ride. Well. And what's interesting too, as you point out Tam and your story, is that a lot of these people who have gotten in, a lot of them right, have gotten in at the peak.

So I mean, if you were there from the get go when she started out inception of all at all of this, you made a lot of money. But if you got in at the highs, you're hurting. Yeah, it's a It's a classic story of sentiment, isn't it. The bulk of the money came in just as as the

arc story really peaked. We're talking early last year. Um, So when you actually calculate the volume of cash coming in by the price that was paid at the time, I mean, it's an estimate, but but you're looking at being underwater by about maybe twenty five percent sometimes in the main fund for example. So yeah, people, the majority of cast that's come in is arguably now reduced, but again.

You know, we've seen star managers before in history tells us a tale, and it all unwinds when investors have had enough and walked away. At one point, the arc innovation thumb was down about six from its peak, and yet we again we have inflows this year. You know, it's an incredible story of faith. Blows are high. Isn't

that what we're supposed to do? So So another thing that kind of stands out to me, or that I'm curious about CM is you know, you mentioned the Innovation Fund their flagship a r k K, but she has other E T F that all have, you know, their own spin on things. How sticky are the assets and those funds compared to the flagship? Point it is true

that they are not they're not proving as durable. Um we see, I mean it's a mixed picture across the funds that we do see that proportional to the assets, the outflows have been higher and the performance of a number of those times is similar to our innovation So um, it isn't you know, it isn't the universal thing. And it's going to be really interesting to see how some of those domes, especially the ones she launched quite late

on the Space Fund, the Transparency funds. It will be interesting to see how those they're Um, I'm reasonably confident this our innovation fund these around for the long haul, but whether and how well the others survived remains to be seen. Hey, um, just real quick, Sam, I'm I'm wondering specifically about the idea of her social media following. And it's interesting in here. I didn't know that she had more followers than the biggest et f issuers can combined.

Right now, Yeah, that's right. She's got more than a million followers herself and then her analysts, and it's not a very big team ARC. I think the whole firm is about forty five people. Um, the they've collectively got another half a million, so taken together, is more than Stage Street, Black Rock and Vanguard official Twitter handles combined. And that sort of speaks to her breadth and her popularity.

And one of one of the ARC portfolio managers is in the story and saying, you know, one of the things that people like about us and why we have these fans is because we're very transparent, you know, and they do, to their credit, they do, you know, they're cat Wood is often online. She tweets her research. They're thinking. They are very engaged and as we've had a sort of retail investor boom, I think that's really played into their hands. Well, it's fascinating you really get into the

details that she's drawn in money. You know how she's had to maybe lay out to some different bets and those names that maybe don't trade as actively. Um, we gotta run, Sam, Thank you so much. Sam Potter, Senior Editor and e T. F s are Bloomberg News from London. Joe Webber, Editor Bloomber business Week. This story in the upcoming new issue of Business Week magazine. I also tweeted out, so you can see that on my Twitter feed as well. Wait a lot today, I'm tweeting a lot. I love

the stories. I'm starting to tweet again. You're listening to Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. So we've been talking about what's the best credit card to get with our Jenny Serene because she tracks this. Yeah, she covers fintech, she covers credit cards, and we have her in the studio for the first time in a while, So we gotta do Jenny, what is the credit card that we should have right now? How do we get the point? She

should start a blog. She really should. She's the points guy. She's our own version of the points guy. Uh. Meantime, we do want to talk about PayPal because man, it's getting whacked today. Right now. It's down about uh certainly I think the top decliner in the Nasdaq one hundred. Uh. Let's get to it because apparently the company is getting stung by bad actors. Jenny Strain is finance reporter for Bloomberg News. She's with US and the Bloomberg Interactive Broker.

She wrote about these bad actors um PayPal as a result shutting four point five million accounts, among other reasons, the company taking a hit in the trade today. What are bad actors? So? Last year, for the first time, really ever, PayPal started to do what we've seen a lot of other FinTechs do, which is say, um, you know, if you sign up for a new account, will give you ten dollars UM and really going hard after those

new users. And basically what they got hit with was a bunch of fraudsters using bot farms um opening a bunch of accounts fraudulently and not UM you know, not intending to be legitimate customers at all. And so after this big review they go through, they decide, Okay, we're going to close those that we know our problem and they're actually gonna stop doing that type of marketing in general. So they have said, you know, we're no longer going

to like shoot for just growth and new users. Were really going to try and focus on our existing users and get them to use us more. Not about quantity, but quality, that's what they're saying. But I mean, this is an important metric right for how we measure the successive PayPal and that's why this is dragging down or in part really dragging down the share price today. Yeah, so yesterday it was really interesting to hear the executives on the earnings called talk about UM. You know, we're

not like a subscription business. We're not like a Netflix where every new user automatically yields fifteen dollars a month in revenue. So they really do depend on their existing users using them a lot. And we did see a little bit of that improve in the quarter. UM. I think folks are using them. It's usually around forty five to fifty times UM on average. And so that I mean that month quarter, yeah, quarter exactly UM. And so I mean, and that's going up. And so that's what

they want to see. And and so they're just saying, you know, instead of putting our marketing dollars around, you know, getting to our first billion users or whatever, um, they're really focused on just making sure that the million that they have are are using them a lot. You what's crazy? In Max Chafkin's book about Peter Tile and they talk about the origins of PayPal. This was an issue when PayPal first started back in like twenty years ago, and

they're still battling it out today. Yeah, what's old is new again. That's very that's very very true. I mean it's honestly, it was kind of a perfect storm for PayPal. They're dealing with a lot right now. Their former parent company, eBay has announced that they you know, are moving there. They're going their separate ways. So that's happening to them. In general. ACoM didn't do as well as folks thought it would during the holiday season. Um, that's obviously PayPal's

bread and butter. So they're just dealing with a lot of different headwinds right now. Is there also just a lot more competition out there? Or or tell me, like what is paypals you know, future place in our financial world. They are really aiming to be, honestly, the next like Aunt financial or the next we chat. The things that we've seen over in China that have done really well is like a super app. So they want to be, um, you're one stop shop for all things. I want to

be a wonder woman too, but you know here I am. Um. The thing is they've really dominated an online checkout, So that little button that you see when you're ready to go check out online, um, PayPal is buying buying a way the biggest player there. And they have secured and established and fought off any other potential um you know,

up start there. So they're ready to do more. And I think this will be a big test as to whether or not, you know, adding all these new services like crypto trading or coupons or shopping, you know, does that really work? Does that? Is that what consumers think

of when they think of PayPal? Well, Jenny, because they have had so much success when it comes to check out, I'm wondering what exactly that product is and how it benefits the company, because isn't it just using your PayPal account to pay for whatever you're buying and the PayPal account is linked to a debit card. Yes, so they I mean they take a little bit of a percentage the merchants. Every time you check out using PayPal, they take a little bit of a percentage from the merchants. UM,

and that take great UM. It actually didn't decline last quarter, which they were celebrating it. UM that take greade that they get per transaction had been on the decline for um a few quarters in a row. UM, so that's looking a little bit better. But I think they realized that that is not, you know, the kind of growth story that everyone's excited about, and really not the growth story that they sold during much of the pandemic when e commerce was going crazy and folks were turning into

them left and right and volumes were through the roof. UM. So they're really definitely focused on this super app strategy. UM. But it's early days, and I don't think that they've convinced everyone that, you know, that's the future. It's a massive company and dollar market cap. I was kind of surprised like it. But I do wonder, like, are they it doesn't make sense for them to ultimately link up with someone an established, more traditional financial company. Is that

a good way of kind of melding. I don't know. I think well, so last year, UM, there was lots of talk of them linking up with Pinterest, which was kind of an interesting UM that's not what I was thinking about, yeah, um, And but I think that's really more what they're thinking. I don't think that they want to go the route of, you know, linking up with the bank, UM, but it could make sense. I think they're a very interesting player in the sense that they

are a fintech. They're a tech giant, but they're firmly in financial UM space. They have really good relationships with regulators. They know how to navigate the intricacies of being a big behemoth and finance and payments UM. So we'll see, we'll see what they end up. Do they just very briefly, do they have a they don't have a bank charter

right now. Do they work with other banks or do they like other FinTechs UM for lots of different products, they have bank partners and and all sorts of different processing partners. Um, but they are not a bank, and I know it's not apples to apples, but it's not a UBS wealth front kind of thing. Like you don't see something. They just feel like there's so much movement right now. There could be they're just such an unusual player and they're giant. I mean to your point, I

don't see a bank selling out two billions billion right now. Yeah, all right, to be continued. As we'd like to say to Seraine, we always have a great time when she's in our studio or just we're chatting with her. She's financial porter at Bloomberg News. Here in our interactive broker studio. Check around on Twitter at Jenny Seraine. This is Bloomberg Radio. I'm rod. Yeah, but you let me drive, no, honey, please, I want to drive the question drive. This is the

Drive to the Clothing Well on Bloomberg Radio. All right, got about eleven minutes, call it ten minutes exact left in today's trading session. Let's get to it with our Drive to the close. Guest Michael Rosen is co founder and ce IO at the multi asset investment firm for institutional and private wealth and investors. Angelus Wealth Management. He is on the phone in Santa Monica, California. Um, Michael, nice to have you here on Bloomberg. How are you?

I'm great? Thanks? How are you? You know? Seventeen sunny out here? That's a little cold. There should be seventy. As a California we can say it's kind of a cold day. It's not what we get out here in New York. Um, it's it's warm though. It's a little more seatier on Wall Street has been what the last

four days or so? Um, how do you read the market? Trade? Well? Uh, you know, I think, uh we we we saw a correction of ten per cent or so in the SMP and uh, you know, just a rotation out of expensive tech stocks and the market a little unsettled around what FED policy is going to look like, along with some variability and data due to the omicron variant. So a lot of things going on causing the market to sell

off of it. But I think if you if you do not think that the economy is going to go into a recession, which is my view, uh than corrections historically have been good buying opportunities, and I think the market just sort of realized that a couple of days ago, and uh that's while we're up. So did investors miss the opportunity to buy or is it going to be kind of a rocky road for the next few months. No, I don't think the investors missed the opportunity to buy.

I mean, we're still off our our highs here, although obviously we've had a nice, nice little bounce back here. Again, I think the underlying fundamentals of the economy are still pretty strong. I think the economy will continue to grow. Uh And you know, obviously questions around inflation and FED policy and where where interest rates will will go. But rates, you know, have you come down off their their peaks here the curve is flattened, and you know, generally the

Fed is still pretty accommodative. Even with all the comments around uh FED tightening and concerns about inflation, the Fed today is still in the market buying bonds, the balance sheet is still expanding, interest rates uh FED funds rate is still as zero, So it's still very accommodate policy

and supportive of of assets at the moment. So does the Fed then, potentially Michael need to shock as an equity investor, as an investor overall managing portfolios for our institutional investors high you know, high net worth individuals who are looking at all different kinds of asset classes. Does the FED though to some extent? Are you looking for them to shock the markets a little bit with a

half a point increase? Would that be a good thing, um maybe for the markets and taking some of the fluff and some of the concerns about inflation out or do you think that could be potentially an overdone move by them. Yeah? I do. First, I don't think the FED is going to do that. I think a basis point move, a gradual, marginal move. I just don't think they've really fully embraced the idea that inflation is a big concern, and the markets have not embraced that at all.

We you know, we we see break even assumptions have been coming down. The market thinks that inflation over the next ten years will average actually less than two and a half percent a year. So the market is not concerned about inflation. The FED isn't either. I don't think

the FIT is going to make any dramatic moves. I do think the FED is in the market actually is perhaps underestimating the inflationary pressures that are are still in the economy, and the FED is behind the curve, and so I do think that there's a risk that the Fed, well, we'll have to move further and faster at some point. But my sense is that at the moment, the first hike is just going to be a basis points as

they I think signals. Hey, we've been talking a lot about the jobs report this week because the range is just massive. And look what we saw from a DP today UM an economists survey by Bloomberg expect a hundred and fifty thousand. The range though, goes from you know, negative several hundred thousand up to positive several hundred thousand jobs added. Um. Yeah, like at the at the length, not the width, right. Yeah, It's just a massive, massive

variability there. I'm wondering, Michael, how investors should should read into that if it is a big miss. I mean, who knows what the market reaction will be. But does that change your and in about the fundamentals of the

economy at all. Yeah, So, the the ADP report this morning was obviously a huge surprise on the downside, and you know, you saw the market react, you very quickly, bonds moved up very sharply, but have since, you know, really come down and now there you know, I don't know, maybe flat slightly up for the day, but uh so an initial big reaction in the bond market. Stock future has never really moved much. Uh So the stock market doesn't really seem to be paying attention to the bond market,

did um. I think this sort of goes to the volatility that we've seen some of the turbulence that we've seen in the in the markets over the last month or so, because we're getting a lot of data and it's kind of all over the place, uh and you know, a lot of it just feel still relates around the omicron variant and the impact that that's had on some of the economic activity, along with uh just concerns about

where inflations going and policy is going. So there's just a lot of stuff going on here, and that's what I think is leading to this volatility. I think the the uh the Friday report, uh, you know, all over the map. I have no idea where it's going to come, but my senses though, uh that investors will probably look through, at least in the stock market because the underlying economy is strong. The labor market is tight. I just can't envision a report on Friday that would really change that

that bigger narrative. Again, there there's variability around it due to again some you know, whether its supply constraints or or the pandemic related job issues. But fundamentally the labor market is still very strong, and I think that's the that's the message that equity investors anyway will will take from from the data. Michael got about a minute left here.

So with all that you said, kind of on the macro, what does it mean when you've actually put new money or client money to work, where do you want to commit it right now? Well throughout Jane where we raised a bit of cash as the market was sort of moving up and down, and um just in the last week or so started to reinvest that cash. And I don't think it's too late either. So I think I think equities really are the place for for investors. Bonds offer no value, in fact negative value. Uh and uh,

and I think the economy will continue to grow. Is that a Tina comment? There is no alternative? Well, uh, to a large except that that's that's true and that's to a large extent, that's by design. The FETE has, you know, created policies where we have inflation and low interest rates and you know, forcing investors to get rid of their their their cash and bonds and go into equities.

And and again I think, as as long as the underlying economy is strong, uh, we don't go into a recession, equity investors will will perform better than investors in in other asset classes. All Right, We're gonna have to leave it on that note. Hey, listen, Thank you so much. Michael Rosen, his chief investment officer at Angelus Wealth Management, on the phone from Santa Monica, California. Some good macro

thoughts there. Yeah, you know, also not a bad place to be Santa Monica, seventy degrees And Sonny, right in the beginning of February groundhog Day. That is a very very good points I could take a little son 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