Bloomberg Audio Studios, podcasts, radio news. Single best idea is that every day we try to have an eclectic set of conversations. I'm not going to mince words. Sometimes we fail. We do that, we take risks, we take challenges, and sometimes it doesn't work out. Today was one of those days where everything was clicking top to about him lebby Kentroll.
Let me get to that in a moment. Jim Caaren first from Morgan Stanley, and he was absolutely brilliant on the partial differentials of equities to bonds, really sophisticated conversation with a physicist from Morgan Stanley.
So it really becomes a question of how you diversify across the equity market. So clearly you want to have some growth, you want to have some value. You also want to have some high quality and defensives mixed in there too. The reality though, is that you can still use bonds as a hedge, but you should have less
than index duration in your bond portfolio. So I think that most people are making is that they say that their neutral allocation of fixed income is just to be neutral the index and just to have the same duration as the index. I would argue that having about a year's less one year less of duration in your fixing car portfolio would do a better job at hedging gear overall your overall equity exposure.
Jim Careen there with an institutional chat. But to make clear, the idea of bringing in your duration is the amount of time of your average bond and your average portfolio, and that timeline issue of how you set up your bond portfolio is a big, big deal. Letty Cantrell with this with pimcoh on the government. Her note was completely inside baseball about Senate races getting out to the first Tuesday of November after techs. The question is where is a new kind of Democrat Libby Cantrell of PIMCO.
There there, Tom, I just feel like they're keeping their their heads sort of in the sand right now, but there. I mean, look, the new Democrats, the coalition on Capitol Hill are sort of the this generation of blue Dogs, and you know, admittedly they are more liberal than the blue dogs that we used to know, but they're still there. And I think that there is this sort of division within the Democratic Party right now, sort of a statement
of the obvious that you know, what wins elections. Is it going to be this more sort of centrist Democrat, this kind of center left Democrat, or a progressive left and I think that is playing at But like the Republicans, I think the Democrats have had mixed success in terms of who they're running this cycle. You could say that Graham Platner and Maine is actually a candidate that does seem like he could. He kind of understands the zeitgeist of the voters in Maine I want to talk to.
I want characterized him as a blue dog Democrat, but he is a more you know, it's more connected to the sort of working class value, traditional working class values of the Democratic Party. You know, James tell Rico. He sounds good, right. He's a very articulate guy. Love him or not like him, or what have you. But he's quite progressive. And so I think to your point, is he too progressive to win Texas? I would argue probably yes.
Libby Cantrell of PIMCO on podcasts, We're on Spotify, We're on Apple, on YouTube podcasts. It's single best idea