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We have right now the perfect guests, given the uncertainties out there, the unknown unknowns and selected and movable know knowns. Edward your Denny joins us after decades of work with c J. Lawrence partran out of Yale University and his own yard Denny Research, and he's been absolutely brilliant. Kudos as well to Ralph and Kompora for calling the October low and I think it was twenty twenty four. Edgar Denny, thank you so much for joining Bloomberg. Thank you this morning.
Ed at the.
Bottom you go contrarian of your note yesterday, and I want to paint this. I said that one of the interns, excuse me, they're junior analysts. They're not interns anymore. Year Denny doesn't call him interns, the junior analysts, and ed I talked to a junior analysts and I tried to explain how odd this uncertainty is around presidential whim. How do you invest for the long term given in the buffeting of Trump tweets.
Well, I think you have to tune it out. It's become more noise than signal. You know, the news changes on a daily basis, and I think the market is figured that out. You know, we had Liberation Day on April second. It was postponed on April ninth until July ninth, and now that's been postponed until August first. And the market reacted badly to that news yesterday, but not that
badly all things considered. And it's not down much today because everybody's talking about this is the art of the deal, this is the way negotiations go when Trump is in charge.
I will not mince words, folks. A subscription to your Denny Research is worth its weight in gold, not because of what he tells you to do, but what he tells you not to do, which just to go to cash in market time. Here's the final paragraph written yesterday. We are going to stick with our contrying position and bet that the dollar will rebound. I just have to stop it there. Talk about contrarian ed yard. Denny. You look at a dollar rebound, and do you look for a healthy earning season.
Well, I'm not sure I know of anybody who's bullish on the dollar. I think everybody's not just neutral, but just outright bearish. It's as though the dollar is about to be replaced as a reserve currency by the euro and the yu one and the yen, and I just don't buy any of that. I think that there's been a kind of a reaction to Trump's haranguing of the Fed, particularly Fed charge your own Powell. I mean, that's clearly
weight on the dollar, as has the trade turmoil. But as we've seen in recent months, Trump is negotiating, there's a bluster and bullying going on there. That's the nature of deal making, particularly in New York City real estate negotiations,
which is where his background is. So I think the market's kind of getting used to it, and I think that people are going to realize that there's not that much positive things going on in Europe other than maybe more defense spending, and the Japanese economy doesn't look all that wonderful. Meanwhile, the US economy is resilient, We've got a huge capital market. So i'd be bullish on the dollar here and on earnings, I think it's a layup.
The estimates for the second quarter have been revised down to such an extent, I think they're only expecting a three percent increase in just like the first quarter. I think we're going to get a big upside surprise.
I see you've got your research assistant in the background, their ed coming into the picture.
We appreciate that.
That gives us confidence. Hey, I mean, Bloomberg Economics is out with some some research today saying they think, you know, at the end of the day, tariffs are going to probably level out somewhere around fifteen fifteen and a half percent, up from about two percent two point three percent today. That's got to have a negative impact on global economies. How do you price that in?
Well, it's it's interesting. Global stock markets are basically around the world at an all time record high. The MSCI for the world is at an all time record high. It's pretty impressive, and stock investors obviously believe that this tariff war isn't going to last very long. I don't think it will last very long because the administration has to recognize they do recognize that the midterm elections are coming up now it seems like, well that's November of
next year. But the administration can't afford to have this trade war cause a recession in coming months because that will obviously hurt them in the midterm elections, and they've got a very few majority and the House and the Senate.
Edgar Denny with us. We continue with Edge your Denny for a lengthy conversation in this hour. Welcome all of you in your commute. Good morning on Serious XM Channel one, one, Apple Car Play, Android Auto. I'm seeing the dashboards of the new cars, Paul, you know, like the beast you have it. It's like it looks like a spaceship. It is all and you gus the radio. You get fourteen flavors, and thank you for picking your flavor to listen and do us. Why don't you continue with that here.
Ed, given kind of what we know about, maybe we're trade tariffs and so on, and policy may kind of flow here. It's going to be a little bit more restrictive. What does the Federal Reserve do here, Ed?
Nothing?
That's that's been my view since the beginning of the year.
None and done.
When they lowered the interest rates one hundred basis points at the end of last year. I thought that made no sense. I think they were reacting to some numbers that suggested things were getting weaker. But I thought the economy was actually going to prove resilient. And I also thought that the bondial would actually go up rather than down. And that's exactly what happened. Boniill went up one hundred basis points as they cut the Fed funds rate by one hundred basis points.
That's the risk they have now if.
They continue, if they resume easing, And so I endorsed their current approach, which is to say that there are no rush to lower interest rates. I would actually prefer if they said that there are no rush to do anything, because by saying they are no rush to lower industrates, they are indicating they think interest rates are restrictive when it's pretty clear the we're in nirvana right now. Unemployment rate is four point one percent, inflation is a little
above two percent. Why mess with success?
And you're Denny on the span of your study, I mean, I think of you inhibits and his equivalency, you know, in terms of the reach back to World War two and even back before that. The market treats the focus the narrowness of growth is unusual. But is it unusual to have so few stocks giving us growthiness and our focus into those twenty thirty forty stocks.
Well, it's really not unusual when you look at it on a global basis. In most stock markets, there are a handful of big cap stocks that really account for most of the market cap of those markets. And I think we're in the same same story here. But look, I think that the reality is we've had a pretty broad bull market. It's just that the Magnificent seven have done so extraordinarily well that everything looks kind of punky.
But that's not the case.
I mean, we've had, you know, plenty of stocks twenty thirty percent, but since we bottomed on October twenty twenty two. But you know, the Magnificent Seven obviously have outperformed them all,
and I have accounted for a lot of the global outperformance. Now, they kind of stumbled at the beginning of this year and the whole deep seek controversy whether that meant that these companies are spending too much on AI infrastructure, and they came back in the first quarter and their announcements and their earnings announcements and earning's calls and said, no, we're we're going to spend this kind of money because we think there really is a tremendous business to be
had with AI. So they're moving forward.
Do you think the mag seven continue forward here as you see US shares gaining overall market share away from Europe? Yeah? I do, I do.
I'm I have been recommending overweighting the US since twenty ten and it's worked out extremely well. But I could overstay my welcome here. Certainly during the first quarter it made more sense to overweight Europe than it made sense to overweight the United States. But I kind of view that as just a temporary situation. I think the US
will continue to outperform, though it is. It's that perform for so long that it's about seventy five percent of the market cap of the global stock market, So I mean, there's a limit to how much better it can get. I suppose it's been quite a run ed.
We're going to have earning start next week. Our good friends at JP Morgan will kick things off in size here. What do you expect to see from this earning cycle? What do you expect to hear from companies as a talk about the you know, the coming quarters here, because last quarter they were arguably and understandably reticent about forecasting the future.
Right.
Well, you know, first off, the bat will be the big banks, and among them will be JP Morgan, and undoubtedly Jamie Diamond will be pessimistic as he tends to be be nice, and then report amazing results.
And I got to stop the show. Ed. I looked at the Bloomberg FA screen yesterday for JP Morgan. They're making so much money huge. They don't want people to know how much money they're making. Am I off the mark on that? I don't know.
All I know is that Jamie Diamond and of some other vocal billionaires keep telling us how bad things are. Listen, and he doesn't have a noisy because, like I mean, Michael by Rich they got Michael Barbat is appalling.
And your Denny doesn't get an invite to the Bezos reading in Venice and he's going after billion billionaires to close it out. I had to close it out. Torsten Slock, brilliant German economist over at poly Global Management, says the bond market and the stock market now are inconsistent This is not consistent. Either the bond market is wrong in rates must move higher due to accelerating growth, or equity markets are wrong and stocks have to move lower because growth is slowing down. A wise one.
Brief doctor slock which one is it? I think everything is kind of the way it should be. We've got the bond market basically has normalized since the abnormality we had between the Great Financial Crisis and the Great Virus Crisis. I have no problems with the bond market being here at four and a half percent plus minus twenty five basis points that's been our forecast since the beginning of
the year, and low and behold, we're still there. And I have no problems with the stock market making an all time record high because of the resilience of the economy.
So again, I think we have to pinch ourselves. We're in nirvana where the Fed funds rate is where it should be, the bondials are where they should be, and the stock market's reflecting the optimism about what I call the Roaring twenty twenties and the technological revolution we've been in since let's say the mid nineteen sixties with IBM mainframes leading to this digital revolution.
For all of you across this nation and worldwide. Paul Sweene and I are really committed to reviewing what the bulls got right during this time and this turbulence. Names like Belski, names like Laidler, names like your Denny that had been smart enough to stay on board. Paul, I'd include lyz En Saunders. Sure, yeah, not the young guy working for him. I mean Kevin, you know I mean suspect.
But I seriously, folks, this is really really important. If you agree or disagree with you your Denny, listen carefully. Can't say enough about your Denny at Research Doctor, your Denny, Thank you so much for joining us this morning.
You're listening to the Bloomberg Surveillance Podcast. Catch us live weekday afternoons from seven to ten am Eastern. Listen on Applecarplay and Android Otto with the Bloomberg Business app, or watch us live on YouTube.
So when Kelsey.
Barrow walks in, you gotta be prepared. I mean, Bob, Michael Swanzers and we talked Greek and Latin with Kelsey. We gotta do the math. Paul watches the two s ten spread the Vanilla's difference. Youel between the ten year and the two year, we've had curve steepening where the two year was a full percentage point higher than the ten year, and we've steadily come up where right now the ten years half a percentage point higher than the
two year. Two standard deviations of this curve steepening is sixty five basis points or a little over six tens of a percent. What are the ramifications to our listeners and viewers if curve steepening gets out there where it breaks through two standard deviation steepness.
Yeah, so the curve has been steepening, it's been steepening from inverted levels. But when you look at the twos tens curve at fifty basis points versus history, that's still not a particularly steep yield curve. And I think that's because the FED policy setting at four and three eighths is still fairly restrictive. And so you know, we've had a modest move lower in the front end of the
yield curve. We've had a modest move higher in front end in longer yields, but that normalization, it's essentially getting us back to a normal kind of environment, which now.
Paul I just kind of tweet a message in here down from Washington emails in and says how far out the yield curve does the FED have influence directly?
They only have influence over the very short short end. And so I think that is something that we've experienced even very recently, with the FED cutting rates at the end of twenty twenty four and the tenure yield actually moving higher in response to that as a function of I think what I would describe as those rate cuts were not necessarily cuts into a recession. Those were cuts into what I would describe as mid cycle adjustment cuts. We've been moving the policy rate towards neutral, and that's
only further extended the cycle. So I think you know, the listener, and thank you for the question. I mean, it's a very key observations. It's a very key observation that you know there is no direct influence in the longer end of the curve. And let's step back and
think about that structural shift that we've been seeing. There's a structural shift we've been seeing in the bond market away from the price insensitive holders, which were central banks the public sector, to price sensitive holders being the dominant driver of the market, that's the retail investor, that's the asset manager. They are taking on a larger role in the fixed income market, particularly as holders in the treasury market, and as a result, you've seen demand for higher term premium.
Here how much.
Credit risk does JP Morgan Asset Management want to take these days?
So we're looking at companies and we're still seeing them in fairly good shape. So and I don't want to take that for granted, but when we press our credit analysts across every single sector and we ask them, and we've been asking them, what happens if the tarifrate stays at ten, what happens actually if the tarifrate goes up
to twenty percent? How will your companies handle this? And what we found when we model out those scenarios is that even under a fairly stressed scenario, and I'm talking about investment grade companies right now, in a fairly stressed scenario, investment grade earnings and revenues will decline but will not turn negative under our assumptions, which just is an example of how strong the starting point is for companies these days. So, yes, I do see a lot of challenges for the economy.
We're in a subtrend growth environment. I would say that with jobs data suggesting that the economy is very narrowly focused, it does suggest that there are risks that we are more susceptible to those risks. But at the same time, companies have been preparing for challenging environments for multiple years now, and that set them up to be in a fairly good position from a bondholder perspective.
I look at the.
End go function on the Bloomberg terminal, the Bloomberg Index browser, and fixed income in the US, US corporate high yield has been by far the best performer. So it seems like the market is still rewarding, you know, even a low investment grade.
Yeah.
Absolutely, So I would describe this as a carry environment.
Okay.
And so if you look at the current index yield on the ion screen right so you pull it up and you look at the yield to worst right now on the US High Eield Index at seven percent, I would say it is.
I'm an equity.
It's a massive jargon alert.
Yes, ah, yeah, all right, just just your yield yield.
To worst yield is afterthought, didn't clean the dishwash?
What's yield worst regardless of which one of the yields you look at, one that adjusts for callable risk, one that doesn't. If you look at the yields, seven seven percent is essentially where you're at if we just stay here, right, spreads don't Why didn't too much? We don't narrow too much from your ear here you have treasury yields around these levels. You should expect your returns over the next twelve months in a high yield index to look similar
to the to the current yield. And that's essentially where we're tracking today. When I look at returns now, there is one area where you've you've done actually even better, which is just to have an eye towards the global market. Is some of these global fixed income indices have done even better, and that's been a function of the weaker US.
We got to get this into the next minute then, But then, how does JP Morgan suggest you participate in internationally yield given a modeled week dollar. I mean, as Casmin looking for.
A week dollar, we're looking for a week dollar. We've been expecting a week dollar. It's been a really good call of our currency team at a time where at the beginning of the year was actually quite.
Out of the Ferraris as well.
They get it, and so you know, I think that what we do want to differentiate is the difference between sell America and a week dollar. So you can have a world and I think we are in a world where there is demand for fixed income assets in the US. We're seeing it in the strong end user demand for treasury auctions, We're seeing it in the strong demand for investment grade credit. But you can also have a week dollar.
And that is a function we've seen of foreign investors keeping their US fixed income assets but hedging them back to their little currencies.
Brilliantly explain Kenny's one done bond. I get thirty seconds. If Apple came out today with a I'm miss making the number of folks, I'm an amateur, a four billion dollar bond offering of tranchees or whatever you call it, don't they just make one phone call to the fidel, to a Fidelity or JP Morgan. I mean, the demand for that would be insatiable, right.
I think we've seen that the demand is very strong and typically right when you have periods of volatility like we've had so far this year. Cool one, yes, but you also see supply step back, you know, come to go to the sidelines. We haven't seen that. You know, supply has actually continue to chug along. People are out there issuing and that's because you know they see the demand side.
Yes, Paul, this is just the strangest s mark. I mean, I mean five firms could buy in all of Meg's seven debt and like literally not exaggerating one phone call.
Sorry.
Rob Shifman has a job.
It Bloomberg Intelligence Robert Shipping Publishing.
There.
I have to look at that. Kelsey Barrow brilliant. That was really, really quite good.
She is with J. B.
Morgan. She put the flags on the new tower for fourth of July.
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Apple Corplay and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa play Bloomberg eleven thirty.
The Governor of Connecticut joins us. Right now. Governor is so serious, I think I just really want to lean on this, which is the future of your Democratic party. When you grew up and you grew up advantaged there was a Republican Long Island and Republican Connecticut and such. Do the Democrats have the gift to give up their majority because of a weakness of Democratic Party leadership? Could that happen?
I don't think so. I think there's some seasonality back and forth when it comes to a politics. Obviously, Donald Trump had a big win and he got his budget bill passed. I think within a year you'll see the effects of that budget bill, and you'll see a Democrat saying, you know, this is really hammering a working families in the middle class, and you'll see the political tides twist and churn.
New York City has turned upside down. I look in the Connecticut Mirror, a CT Mirror conversation with you, you say that mister mucdonnie ran a hell of a rasist folks as the arch progressive running for mayor of New York after a victory over Governor Cuomo and others. How should centrist Democrats respond to a generational change?
Look, I think that he did run a bright campaign, and we've got a lot to learn from, especially guys my age, like what he did in terms of social media. Young people hadn't voted for a long time. They don't often vote in primaries, and they often don't vote in the cities, and they sure as head voted, So credit
or credits do. Look, he and I have very different styles, but you know, at the end of the day, I've got a universal pre k, a down payment there, pre natal education, doing everything we can to they get easier for people to get ahead in life and make life a little more affordable. So there we have a lot in common, but we have.
Different styles governor. President Trump obviously has a great skill at just you know, commanding the narrative here and just kind of taking for in terms of other folks, maybe taking a lot of the oxygen out of the room. What are the Democrats need to do from a messaging standpoint heading into the midterm elections.
Look, he's got a very loud voice, sort of hurky jerky every day it changes, but he dominates the landscape. Very tough for you know, me as a governor when you just don't don't know what the budget's going to be one day to the that's what the tariffs are going to be. It's tough to invest and make long term commitments there. I think the Democrats has just got to be clear as day. We're fighting for the middle class. We believe in them bottom up. We believe in this
state of Connecticut. We've had more new small business startups than ever before. Those are a lot of small businesses starting up on Awaley Avenue, New Haven. And I think that's how you grow wealth, and I think that's how you get our cities back to life, and I think that's how you fight for working families in the middle class.
Governor, it seems like for both parties, perhaps the extreme right the extreme left seems to be driving the politics for each of those parties. Is there even a center left for either party or both parties?
It's getting smaller because I'm there, and yeah, you're right, I think. You know, after Donald Trump's election, the Republicans are a.
Lot less likely to want to talk to me.
You know, I always have a big table in an open door and a lot of people look at me and say that it looks a little like Republican. And the Democrats are sort of really fighting Trump every day, and if you don't go after them on a daily basis, you're sort of being weak in terms of your principles. So you're right, the middles getting very small, and that's not a good.
Name for America, and that Lamont with us from Connecticut, we continue. We welcome all of you across the nation and certainly in the Bloomberg eleventh three to zero area. Here an interesting conversation of Republicans and Democrats. In the summer of twenty twenty five, Governor Lamont Bloomberg wrote this up on Paul Tudor Jones noted hedgehund dude exiting to Palm Beach, Florida. There's a fear in the Tri state area, and frankly there's a fear in Boston and Washington that
with adverse policy that migration will continue. How have you tried to respect bond to fancy people in Greenwich? Is a climb on their Hinckley picnic boat in a heads South. How have you responded to that threat?
Tom? I think twofold one we were raising taxes on an every other year basis, going back at ten years in this state. That hasn't happened on my watch. We haven't raised tax rates. I think that gives people some comfort that we're getting our fiscal house in order and we're not going to balance the budget. By raising taxes and also tell people, look, this is the state, the tower where you grew up. This is where your children or your grandchildren are. You can watch them, you know,
on zoom from Palm Beach. You can be right here with them every day. And it's something to be said for making sure this is a place where you can stay in the community where you grew up and where your family is.
So governor what's the what do you think the future is of this Democratic Party here? How does the Democratic Party regain some momentum, any momentum here, because it just feels like it has absolutely zero momentum at this point.
I think you're already seeing it happen. I think you know the the Trump you know budget, it's going to really impact middle class families. You're gonna see what it means in terms of folks getting thrown off of healthcare.
You're gonna see what it means in terms.
Of folks and not getting the food benefits. We have fifty million dollars of cuts. Just the portal turned off three days ago for after school programs. I think this is going to impact middle class families. So right now it's all beaches and grain and tax cuts, But when do you see how this impacts your everyday life?
Governor? One final question, We have to go back to our discussion of a few days ago, heated debate within Bloomberg Surveillance and a huge nationwide response. Governor Lamont is a traditionalist of old money in America. Do you go for the cold Main lobster role or are you loyalty the warm Connecticut lobster role.
You mentioned the word Connecticut. That makes it easy for me. But you know the lobsters are fleeing Maine too. They're going north to Canada. So you got to watch out. The times are turning.
We'll need a new post. Go ahead, well, we'll need a new policy on the Governor. We're out of time. Thank you so much for joining us. I believe that was a voice for the warm role. That you were right sure.
I mean you know either.
Exactly, you take both of one of each. Governor, Thank you so much for Connecticut there and the future of his Democratic Party.
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Apple Corplay and Android Auto with the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal.
Red Case joins USUS. Now we always have a huge response when he's on studying under Robert Schuller at Yale at doctor cases with Middelburg communities. They do residential multi family real estate in Virginia really into the pulse of the market within the zeitgeist. Brad case, what do we get most wrong about America's housing market?
Well, I think that there are a lot of ways in which we could work to increase the supply of housing, both owner occupied housing and rental housing. And we see the importance of that with how expensive houses have become. It's really really very difficult for somebody to purchase a house nowadays, and especially when they're concerned that the prices of housing may go down in the future. So there's a lot that governments at all levels can do to
make it easier to build housing. What we're seeing is that there's a tremendous increase into de manned for housing, and we're just not seeing an increase in the supply of housing. In fact, it's been going down.
So what's your prescription for New York City is one example?
Well, you know, New York City is a very special case. We focus, in fact, not just in Virginia, but the entire mid Atlantic and southeastern part of the country because there's such growth in population.
And employment in that part of the country.
And that's not a story that's really going to be told about New York City or some of the other older, very very pleasant cities in the Northeast and the West.
They're just not growth centers.
So the prescription for a place like New York is entirely different from the prescription for a place that people are trying to move to.
Brad, why is there a supply shortage? I mean, with the nail gun. If nothing else, houses go up in fifteen minutes these days. Why aren't there more houses out there? Why aren't there more housing out there?
Well, you know, it has to do with providing the permission to build housing and the infrastructure. And so what we've seen is that is that there are lots of places where the people who currently own houses don't want to see any more housing because if there's a lack of housing around them, that drives up the price of
their own house. So the problem is that you've got a lot of people who need housing who are younger, who want to rent a place, want to buy a place, but they're being shot out of the market by other people whose goal is to increase the.
Value of their asset.
So there's a lot of opposition to construction of new housing everywhere in the country.
Boy, I don't know.
It just seems like I just see these residential communities going up all over the place, and yet I still, you know, four or five six years in we still hear about housing shortages here. How did we get here, Brad? In terms of housing shortage, this wasn't a thing I don't know, five six, seven, eight years ago. I just don't remember ever hearing about it.
Well, no, I think it's it's actually something that's been going on for fifty years. We back into the early nineteen seventies, we were building quite a bit of housing, and there was a tremendous increase in the number of households looking for housing, especially after World War Two. What people don't realize is that over the last ten years we've had an even bigger increase in the demand for housing.
But we haven't gone back to those days in the sixties and seventies when lots of housing was just being built.
Have we not gone back to the sixties and seventies because the land is not available clearly in the greater Tri State area. That's true, it's just maybe up in Boston as well. Is it a land issue? Is it foundationally about land?
It's not really about land.
It is you know, in a place like New York or Boston, there's a very strong public transportation system that makes suburban areas available to people, so you can put housing there and people can still get the jobs. In lots of places, they haven't yet built the same level of transportation infrastructure, which makes it harder to move out farther into the too where the land is available.
For your community. Across the nation, this is one of the chief econdom in history. At Fannie May and with Schiller at Yale University. Bread case is with US Middelburg Communities. Bread Every weekend there's an article, OMG, the Cell's gonna die. Housing prices are down, rents are down. Do you buy it? Is there a permanence to that debacle?
Oh?
Not at all. In fact, what we've seen.
What we saw was a tremendous increase in demand for housing in the Southeast and in mid Atlantic, especially because of the COVID shutdown. But what that did was it stimulated a big supply response, and so we had a supply surge a few years ago.
But that supply surge has really entirely ended.
You know, the new construction of housing, especially in our part of the country, has come to a rashing halt, and so we very recently, very very quickly moved into an undersupply housing shortage situation, even in the part of the country where housing is easiest to develop.
So, Brad, I'm looking at the thirty year fixed mortgage from the Mortgage Bankers Association six point seventy nine percent. I got to feel like that's kind of got to be the new normal. If so, when do buyers and sellers kind of accept that.
As a new normal.
It doesn't seem like that's the case yet.
Well, there's no real pressure for sellers to accept the lower prices that they would realistically be able to get, and the problem for buyers is that they don't want to buy into a situation where they will be the ones accepting the lower prices.
I think you're right.
I don't think there's any reason to think that mortgage interest rates will go down anytime soon, even if shorter term interest rates go down. The Federal Reserve has indicated that it wants to re use what they used to what they called the quantitative easing, and that will increase mortgage rates.
So and so many parts of the country. Bread case is renting better than buying.
Well, that is usually the case, and the reason is that people don't realize when they buy a house they have to give up a huge chunk of money the down payment, and if instead they put that money into productive investments, especially in the stock market, then in the long run they would probably build more wealth. So there is this myth that the way to build wealth is to buy a house, and the reality is that usually
that's not the case. If you're able to buy a house when houses are cheap and the stock market is overvalued, then great, take your money out of the stock market and buy a house.
That's not our situation right now.
Right now, houses are very expensive and if houses crashed, then you'll probably see the stock market crash at the same time. So generally speaking, to build wealth, you're better off renting. Now, there are other reasons to buy, and some people want to buy just so they can say their homeowners. That's not the same as building wealth.
Brad Case, thank you so much. I really can't say enough about it. How you get John?
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Apple Corplay and Android Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just Say Alexa Play Bloomberg eleven thirty.
Lisa Matale live and in color digitally perfect on YouTube. What do you got today? Lisa? All right?
Do either of you pay for TSA TSA pre check? Yes, you do pay for it and clear and clear clear which I'm clear.
I'm mixed, okay, clear sometimes good.
So the reason for the TSA pre check the big jotto it is what the shoes?
Right?
You can leave the shoes.
On if you have the TSA pre check, Well, pretty soon everybody could be get that perk, not just the ones who pay for it. Ruses are saying the TSA is really considering to make these policy changes. They want to kind of speed up the security screening times as you go through. It's been rough for nearly two decades.
I mean you think about it.
Eleven yeah, two thousand, the shoe bomber. You know, they failed attempt, so that's kind of what sparked it. Critics are saying, you know what, it does nothing for security. It's this whole theatrical thing. So the TSA has not made it official. These are just you know, sources saying. But other airports, I mean you think about you know, across the European Union, d Buy, Singapore, they all allow you to keep your shoes on. So come up to date.
I understand, I understand how it kind of came about, but it's come on, it's all the technology today.
Yeah, you're sitting at Zurich and they're like laughing at us. There's no other way to put it.
I know.
It is a little and then you know, for the women you have, were your shoes and you got to carry the socks in your bag because you don't want to wear barefoot on the floor. I mean it's it's it can be a little bit stressful.
Okay, good point. That's a good one.
That's a good one.
It can it can't. Okay, I have this next one. Yes, if you're wearing the fancy shoes.
Of course, what you always do, you know.
Okay, next story. I've been kind of toying with the idea of getting a tattoo. That's a story for another day.
I saw this.
Old street journal. It says that there is an AI driven tattoo robot that is taking appointments. Okay. It is an awesome Texas space startup. It's called black Dot.
Okay.
They raise about seven million dollars for this company. But here in New York City they are installing their first one. It's taking appointments now. It's at this place called Bang Bang in New York City. So the way it works, just to give you a brief rundown, the human it starts it okay, but then the arms scan this.
They have this like.
Extended triple pointed needle. The thing about it is that it's supposed to be less. It hurts less because it doesn't go as deep into the skinry.
What tattoo with miss Matato slut.
I'm thinking about it and maybe a little risk thing. I don't know. It could be a mother daughter kind of you know, bonding moment. I know, mother of the U.
Sorry, and I can neither confirm nor deny that I have a tattoo.
Oh so we're just leaving at.
Then oh Swaine coming through, all right, but it's an interest. But the thing that there's concerns from tattoo artists who are like, wait a minute, this is my job.
What are these robots coming in?
So there's that side of the story too. Okay, I want to end with this one. This is in the Washington Post. This is a great story. The sixty seven year old historic U Street diner. It's anonymous right Washington's cultural political landscape. We're talking about Ben's Chili Bowl. Started with the Ali family back in nineteen fifty eight, still family owned operated. But the thing is it's going to
be shut down for a while. They're in need of these big renovations HVC, you know, HVAC, the roof, the electric panels, plumbing, and they're going to be shut down for several months. It's the longest stretch ever for this restaurant before. So they're hoping that when the updates are done that it doesn't change the interior feel of it that people are used to. We kind of touched upon this with with what I think it was a cracker barrel.
How they wanted to keep that, you know, same kind of inside feel that people are used to, but they're hoping that it doesn't change this for the restaurant.
It is magical. Have they shut down yet?
I don't think you've been July fourteenth.
Anybody in Washington has never been U Street Northwest. You gotta go. It's it is absolutely magical. Lisa Matteo on the way to the tattoo Parla of this after thank you so much, greatly appreciate that it's ourly speakers with Lisa Matea.
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