# The Bank of Mom & Dad; College Sports Going Pro & The Return of the Suit

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 19 Sep 2026, 44 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/1b0c2805-9805-43e6-9662-b4ab0110f413/1f674cf0-87fe-438d-9595-b4c90153ddb5/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Bloomberg Money takes the pulse of your financial life, powered by the reporting of our global newsroom. Today's guests: KKR Partner, Head of Global Macro & Asset Allocation Henry McVey and BNY Wealth CIO Alicia Levine. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios.
[0:04] Speaker 2: Podcasts.
[0:05] Speaker 3: Radio.
[0:06] Speaker 4: News.
[0:07] Speaker 5: Bloomberg Money. This is the Bloomberg Money Podcast. I'm Tom
[0:15] Speaker 5: Keen with Scarlett Fu. Join us each week for a
[0:18] Speaker 5: smart look at the forces shaping your financial life on
[0:22] Speaker 5: personal finance, on retirement, and wealth management. We will explore
[0:27] Speaker 5: how people are earning, investing, and building wealth. We are
[0:31] Speaker 5: live Fridays at noon Eastern on Bloomberg Television. Subscribe to
[0:35] Speaker 5: the podcast wherever you listen, and as always on the
[0:38] Speaker 5: Bloomberg Terminal and the Bloomberg Business app. Good noon, everyone.
[0:54] Speaker 5: Bloomberg Money, always on personal finance, retirement and wealth management.
[0:58] Speaker 5: Back from the summer, Scarlett Fu and Tom Keenan does
[1:01] Speaker 5: feel in New York City like we're back from the summer.
[1:04] Speaker 1: Yeah, it's really crisp outside. And of course, next week,
[1:07] Speaker 1: we've got a whole world descending upon our doorstep.
[1:09] Speaker 5: We do. You can see it coming in right now
[1:11] Speaker 5: in Fifth Avenue, all the security up right now. But
[1:13] Speaker 5: part of it is Wall Street, and to me, away
[1:16] Speaker 5: from Bloomberg Money, do you want to trade stocks 23
[1:19] Speaker 5: hours a day? I guess that's coming up. I don't
[1:22] Speaker 5: buy it.
[1:22] Speaker 1: I mean, the argument is that people outside of the U.S.
[1:24] Speaker 1: want to trade our stocks 24-7.
[1:27] Speaker 5: I guess so, but it's like Bitcoin. I mean, Bitcoin,
[1:29] Speaker 5: I can trade Sunday.
[1:29] Speaker 1: You almost said BitDog, didn't you?
[1:31] Speaker 5: Yeah, I almost said BitDog. But the answer is this
[1:33] Speaker 5: is a revolution like the market moving down to Texas, maybe.
[1:36] Speaker 1: Oh, yeah. I mean, more companies moving in that direction.
[1:38] Speaker 1: I think Dillard's was the latest one.
[1:39] Speaker 5: Lots of it. And I learned today, Paul Sweeney told me,
[1:42] Speaker 5: Dillard is from Arkansas.
[1:43] Speaker 1: Yes, Little Rock.
[1:44] Speaker 5: Learn something every day. We say good morning and good
[1:48] Speaker 5: noon to you as well. With us this noon, Henry
[1:50] Speaker 5: McVeigh will join us, partner at KKR, a really important
[1:55] Speaker 5: regime change essay out, head of global macro and asset allocation.
[2:00] Speaker 1: And we'll be sitting down with Alicia Levine, BNY Wealth
[2:03] Speaker 1: Chief Investment Officer, on what a set it and forget
[2:05] Speaker 1: it investment strategy looks like when you're at the start
[2:08] Speaker 1: of a new rate hiking cycle.
[2:09] Speaker 5: Right to it with good conversation ahead. Let's get the
[2:11] Speaker 5: stocks right now as we can. Sort of a Friday
[2:14] Speaker 5: feel to it after this hellacious week that we've had. But,
[2:17] Speaker 5: you know, all in all, holding on, I would say, Scarlett,
[2:20] Speaker 5: more than anything, looking at bonds, looking at commodities, looking
[2:24] Speaker 5: at foreign exchange, it's a miracle where that VIX is.
[2:27] Speaker 1: Yeah, it's pretty subdued given what we've seen this week.
[2:31] Speaker 1: The S & P 500 set for a second straight
[2:32] Speaker 1: week of declines. You flip up the board and we
[2:35] Speaker 1: look at the 10-year yield. We're right back at around
[2:37] Speaker 1: that 5% level, just a hair below it. What does
[2:41] Speaker 1: that mean for stocks?
[2:43] Speaker 5: Not clear.
[2:43] Speaker 1: The dollar modestly higher at the moment. It's pretty much
[2:46] Speaker 1: at a seven-week high. And we're looking at New York
[2:48] Speaker 1: crude at $ 101 a barrel. It is about to close
[2:51] Speaker 1: out a third straight week of gains.
[2:53] Speaker 5: Well, three weeks ago, we were 109, two cups of
[2:56] Speaker 5: coffee ago, and we've come in nicely. That dovetailed right
[2:59] Speaker 5: with the Fed.
[2:59] Speaker 1: Well, before the war, we were at 65, so.
[3:01] Speaker 5: Well, there's big changes. Did you see diesel?
[3:04] Speaker 1: Oh, more than $ 6.
[3:05] Speaker 5: I figured out, like, what Gura drives, the F450, you know,
[3:08] Speaker 5: the big thing, eight tons or whatever. $ 312 to fill
[3:10] Speaker 5: it up.
[3:13] Speaker 6: Eesh.
[3:13] Speaker 1: Good thing he lives in Brooklyn.
[3:14] Speaker 5: It's painful. We'll have to see on this. Speaking of painful,
[3:17] Speaker 5: a great set of guests with us this morning to
[3:19] Speaker 5: get us started. Always a wide-ranging conversation. Nikki Waller with us,
[3:23] Speaker 5: driving all of our Bloomberg Money and personal finance reporting.
[3:27] Speaker 5: Story after story that I'm forced to read. I never
[3:30] Speaker 5: read Janet Lorne because it's all about tuition. Nobody can
[3:33] Speaker 5: afford driving all of our educational product. Janet Lorne with
[3:37] Speaker 5: us this morning. as well in slipping in before a
[3:40] Speaker 5: ginormous week ahead for Bloomberg this weekend. Sunday, you're at
[3:45] Speaker 5: the Plaza, right?
[3:46] Speaker 7: Yes, as I often am. No, it's the Qatar Economic Forum,
[3:49] Speaker 7: powered by Bloomberg, and I'm going to be there hosting
[3:51] Speaker 7: the show in the morning, and then a series of
[3:52] Speaker 7: panels to follow that will be on Bloomberg TV.
[3:54] Speaker 5: You and I decided to go beyond that to a
[3:56] Speaker 5: huge event this week, and the rumors, I believe Politico
[3:59] Speaker 5: first reporting it, that the president of the United States,
[4:03] Speaker 5: like JFK and Adenauer, like JFK with de Gaulle, is
[4:07] Speaker 5: going to go out to the airport to pick up
[4:09] Speaker 5: the luggage for the president of China.
[4:11] Speaker 7: Well, reportedly, he'll go to Joint Base Andrews to greet
[4:14] Speaker 7: President Xi when he arrives. And I think that just
[4:15] Speaker 7: underscores the importance of this summit. And as Ambassador Nick
[4:18] Speaker 7: Burns has pointed out, this could be the first of
[4:20] Speaker 7: three meetings these two leaders have here in the months ahead,
[4:23] Speaker 7: but incredibly important, yes, because of trade, but also because
[4:27] Speaker 7: of AI, the conversation that we've been having over the
[4:28] Speaker 7: course of the week, really, front and center.
[4:29] Speaker 1: I mean, that's on the agenda, but we don't know
[4:31] Speaker 1: exactly how they're going to address it. Also, I wonder
[4:34] Speaker 1: whether on the agenda is Chinese students and their visas
[4:37] Speaker 1: and their ability to come to the U.S. Janet, I
[4:39] Speaker 1: want to bring you into the conversation because the Trump administration,
[4:42] Speaker 1: through its Department of Justice, is taking aim at a
[4:45] Speaker 1: broader swath of colleges. It's not just Harvard that it's
[4:48] Speaker 1: looking to punish anymore.
[4:50] Speaker 8: Well, we met with Harmeet Dhillon from the Justice Department
[4:53] Speaker 8: a few weeks ago in Washington, and she had a
[4:55] Speaker 8: lot to say about universities. Yes, it's not just Harvard
[4:58] Speaker 8: and Columbia, but we're starting to see more schools getting
[5:01] Speaker 8: inquiries about their medical school, their law school.
[5:04] Speaker 2: Duke was the top of that list as well.
[5:07] Speaker 1: And foreign influence on schools, too.
[5:09] Speaker 5: Yeah, this is a third rail for me. Basically, the
[5:12] Speaker 5: Trump administration has blown up the graduate programs of education
[5:16] Speaker 5: in America. Is that an exaggeration?
[5:19] Speaker 9: No.
[5:20] Speaker 8: Do you know that half the entire student loan portfolio
[5:23] Speaker 8: is graduate school loans?
[5:24] Speaker 2: You can borrow up until July 1st.
[5:26] Speaker 8: You could borrow up to the cost of attendance.
[5:28] Speaker 2: In some cases.
[5:29] Speaker 8: $ 125, 000 per year times two or three years of your program,
[5:35] Speaker 8: and the interest rates for those loans were 9%.
[5:38] Speaker 5: So if a child decides to get a graduate degree
[5:40] Speaker 5: in screenwriting, they go to the First National Bank of
[5:43] Speaker 5: Mom and Dads and overlay it with a general loan?
[5:47] Speaker 8: No, they go to the federal government, and that's all
[5:49] Speaker 8: changed now.
[5:50] Speaker 5: That didn't happen. Continue the show while I start crying.
[5:53] Speaker 1: I know, exactly. Well, there are limits to those federal
[5:55] Speaker 1: loans now. Nikki Waller, let's bring you in because Tom
[5:58] Speaker 1: mentioned the Bank of Mom and Dad. Our reporting shows
[6:00] Speaker 1: that more and more we're seeing baby boomers fund a
[6:03] Speaker 1: lot of their grandkids' needs and the costs of living
[6:07] Speaker 1: in a way that they hadn't had to before. And
[6:09] Speaker 1: I'm guessing that must have an impact on how they live.
[6:11] Speaker 1: safer their retirement. It has a huge impact.
[6:14] Speaker 10: And what we're seeing these grandparents providing isn't just temporary help.
[6:19] Speaker 10: I'm actually thinking of it kind of like the grandparent economy.
[6:22] Speaker 10: The cost of raising a kid is $ 300, 000, not counting college.
[6:26] Speaker 10: And I know for all of us in New York,
[6:28] Speaker 10: that actually kind of feels like a deal. But families
[6:31] Speaker 10: need more money to raise their family, raise the kids
[6:34] Speaker 10: and the grandparents are stepping in.
[6:36] Speaker 1: So in terms of what that means for retirement, they're
[6:39] Speaker 1: just raiding their own retirement accounts then as a result,
[6:41] Speaker 1: and they're picking up jobs on the side?
[6:43] Speaker 10: In a lot of cases, we talk to some people
[6:45] Speaker 10: in their 60s who are picking up extra jobs so
[6:48] Speaker 10: that they can help their adult children, or they're picking
[6:51] Speaker 10: up the job of taking care of kids, which is
[6:53] Speaker 10: something historically that grandparents have done. But in other cases,
[6:57] Speaker 10: the spending is cutting into their own retirement.
[6:59] Speaker 1: Saving and cash flow.
[7:01] Speaker 10: And that's something that financial advisors are saying, stop, put
[7:04] Speaker 10: on your own oxygen mask before you host.
[7:06] Speaker 5: Speaking of oxygen masks, I'm thinking of the summed number
[7:09] Speaker 5: of summer camps that everybody went to sitting around the
[7:12] Speaker 5: desk this year. Are we broke in asking mom and
[7:17] Speaker 5: dad to help because we're asking too much of fancy childhoods?
[7:22] Speaker 10: That is a great question, and I think it depends
[7:26] Speaker 10: on what you see as a great childhood. You know,
[7:29] Speaker 10: a lot of the grandparents don't want to see their
[7:31] Speaker 10: grandkids missing out on the good things in life.
[7:34] Speaker 5: Which are not a surveillance child expert. David Gurro with
[7:37] Speaker 5: us here as well. Your childhood was a Martin, I
[7:40] Speaker 5: think it was a D18 or D28 or whatever. Just
[7:43] Speaker 5: shut up and practice. And nowadays, kids, my vintage kids,
[7:47] Speaker 5: your vintage kids, We won't even talk about Janet Lauren's kids.
[7:51] Speaker 5: I mean, off to a fancy school and all that.
[7:54] Speaker 5: The answer is it's just gotten so much more complex
[7:58] Speaker 5: in our ute.
[7:59] Speaker 1: One moment.
[7:59] Speaker 7: First, I have to note, you're taking on a second
[8:01] Speaker 7: job here hosting this show. It makes me a little worried, Grandpa,
[8:03] Speaker 7: about what's happening.
[8:04] Speaker 1: It is.
[8:04] Speaker 2: It is.
[8:05] Speaker 5: I mean, no. The surveillance casket is, Nikki, you don't
[8:07] Speaker 5: know this. The surveillance casket is right outside the radio. Oh,
[8:10] Speaker 5: we're not allowed to talk.
[8:11] Speaker 7: About the surveillance casket. No, you're absolutely right. And I
[8:14] Speaker 7: think that there is a lot of tacit pressure. implied
[8:17] Speaker 7: pressure among families, certainly in cities like New York, where
[8:20] Speaker 7: you look at the summer and it can't just be
[8:22] Speaker 7: running around in the park or going to a day camp.
[8:23] Speaker 7: There are all these other programs you can pick. And
[8:25] Speaker 7: I think even what has been in vogue, these kind
[8:27] Speaker 7: of remote camps that are focused on old school being
[8:30] Speaker 7: in the wilderness are now out of vogue. It's time
[8:32] Speaker 7: to start practicing for this test or that test or
[8:34] Speaker 7: thinking about college.
[8:35] Speaker 5: And all that costs money. We learn.
[8:39] Speaker 1: You know what else costs money? Making sure that your
[8:41] Speaker 1: kid can play sports and getting to college.
[8:44] Speaker 5: Put the puck in the net.
[8:44] Speaker 1: Put the puck in the net, you know, hit the
[8:46] Speaker 1: ball over the fence. For schools with big basketball or
[8:50] Speaker 1: football programs, Janet, they're looking for new revenue sources because
[8:53] Speaker 1: we're in this new era of paying college players. And
[8:56] Speaker 1: that's turned a lot of college campuses into districts that
[8:59] Speaker 1: look like professional sports stadiums, hasn't it?
[9:02] Speaker 8: They are borrowing a page from the professional sports, and
[9:05] Speaker 8: that's because they're paying players and they're generating revenue to
[9:09] Speaker 8: find money to pay them. The new trend is building
[9:12] Speaker 8: or renovating the sports arenas. You're seeing that at major colleges,
[9:16] Speaker 8: including Kansas.
[9:18] Speaker 2: We were just talking about this.
[9:19] Speaker 8: Not a football powerhouse, but David Booth gave them $ 300
[9:23] Speaker 8: million to try to make the stadium better.
[9:26] Speaker 1: And what is the key? Premium seats.
[9:28] Speaker 7: Yeah.
[9:29] Speaker 8: Fancy experiences, things that charge a lot of money and
[9:32] Speaker 8: bring in more money to pay those players.
[9:34] Speaker 5: We should mention that David Booth reinvented Bloomberg money, personal finance, retirement,
[9:40] Speaker 5: wealth management. He was academically definitively dimensional of getting things done.
[9:45] Speaker 1: Very well said.
[9:46] Speaker 5: He's a real deal.
[9:46] Speaker 1: So when it comes to these new stadiums and these
[9:49] Speaker 1: new school, these new offerings, luxury amenities, where does the
[9:53] Speaker 1: school part of it fit in? I mean, because the
[9:54] Speaker 1: tuition keeps going up, doesn't it? Yes.
[9:59] Speaker 8: Well, in some cases that they're looking to private equity
[10:02] Speaker 8: at the University of Tennessee, they're building this new district
[10:05] Speaker 8: that will have hotels, apartments, you name it.
[10:08] Speaker 4: And they are the landlord. They own the land and
[10:10] Speaker 4: they will.
[10:11] Speaker 8: Be sharing revenue from whatever comes in for those developments.
[10:14] Speaker 5: Speaking of sharing revenue, is there a name, image, likeness
[10:18] Speaker 5: for the New York Mets?
[10:20] Speaker 1: Oh, I knew you were going there. Well, you know,
[10:23] Speaker 1: Pete Alonzo.
[10:24] Speaker 5: Took the name, image, likeness down to the land of Rubenstein.
[10:28] Speaker 1: 300th home run, and it....
[10:32] Speaker 8: At Baltimore, and he was here at Citi Field doing it.
[10:35] Speaker 8: It was kind of a nice honor for him, but yeah,
[10:38] Speaker 8: it's too bad.
[10:39] Speaker 2: It's too bad.
[10:39] Speaker 5: Have a Tito's and Tang on the way out the door.
[10:41] Speaker 1: That's the life of a New York Mets fan.
[10:43] Speaker 5: Yeah, Janet Lorne, thank you, thank you so much. Nikki Waller,
[10:45] Speaker 5: thank you and your team for great work on personal finance.
[10:48] Speaker 5: I don't know what to say to you. You've got
[10:50] Speaker 5: like a 24-hour Sunday, don't you?
[10:52] Speaker 7: 24-hour Sunday, big event, as I said, coming up. I'm
[10:54] Speaker 7: particularly looking forward to talking to Howard Marks. We're going
[10:56] Speaker 7: to talk about AI and the economy, so he'll be
[10:58] Speaker 7: our guest on the morning show.
[11:00] Speaker 5: Looking forward to that.
[11:00] Speaker 2: All right.
[11:01] Speaker 1: That's fantastic. That's coming up this weekend on Bloomberg. Now,
[11:04] Speaker 1: coming up on Bloomberg Money, we're going to talk investing
[11:07] Speaker 1: regime change with Henry McVeigh, his partner at KKR. And
[11:11] Speaker 1: be sure, as we were just mentioning, to tune in
[11:14] Speaker 1: for the Qatari Economic Forum held in New York. Bloomberg
[11:16] Speaker 1: will be covering that live on Sunday, including conversations with
[11:19] Speaker 1: the IMF managing director and city chair and CEO, Shane Frazier.
[11:23] Speaker 1: This is Bloomberg Money.
[11:25] Speaker 5: You're listening to Bloomberg Money. Stay with us with more
[11:28] Speaker 5: to come after this. Bloomberg Money, and we say good
[11:35] Speaker 5: afternoon to you. Really the first show back after the
[11:38] Speaker 5: summer break. Scarlett Fu and Tom Keene. Again, there's a
[11:43] Speaker 5: bustle in the city more than to do with a
[11:45] Speaker 5: huge event Sunday.
[11:46] Speaker 4: Yes.
[11:46] Speaker 1: Well, the U.N. General Assembly begins this weekend. And of course,
[11:50] Speaker 1: we've got a lot of diplomats descending upon the city.
[11:52] Speaker 1: It's going to be super busy. Don't try to take
[11:55] Speaker 1: a cab across town.
[11:56] Speaker 5: Across town is worse than going downtown. Here's what we're
[11:58] Speaker 5: going to do right now. This is a joy. Henry
[12:01] Speaker 5: McVeigh held court at Morgan Stanley for years. To say
[12:04] Speaker 5: he's a partner at KKR barely describes his holistic view
[12:09] Speaker 5: of our economics, our finance, our investments. So you say, well,
[12:12] Speaker 5: what's it got to do with personal finance? What's it
[12:14] Speaker 5: got to do with retirement or wealth management? He and
[12:17] Speaker 5: his team have put out an absolutely definitive report, history-based,
[12:22] Speaker 5: as you'd expect for a guy from KKR. University of
[12:24] Speaker 5: Virginia as a history major years ago. Let's start with
[12:28] Speaker 5: the history of our regime change. What did we used
[12:32] Speaker 5: to do that's maybe dated right now?
[12:35] Speaker 11: So pre-COVID, if you think about it, coming out of
[12:37] Speaker 11: the GFC, we had secular stagnation, right? The central banks
[12:42] Speaker 11: could not engender inflation in the system.
[12:45] Speaker 5: So what would you do?
[12:45] Speaker 11: You'd lower rates, try to increase borrowing, and then that
[12:48] Speaker 11: would lead to consumption.
[12:49] Speaker 2: Right.
[12:50] Speaker 11: When COVID hit, you had a huge amount of fiscal
[12:53] Speaker 11: stimulus come in the system. The money multiplier started to work,
[12:57] Speaker 11: and we went into what we call a regime change.
[13:00] Speaker 11: Bigger deficits, governments are spending more.
[13:02] Speaker 2: Right.
[13:02] Speaker 11: More geopolitics, messy energy transition, and more things that are
[13:06] Speaker 11: going to bump into.
[13:07] Speaker 5: And into Bloomberg Money, a messy bond transition as well.
[13:10] Speaker 5: I want to go to this one quote. This is
[13:12] Speaker 5: a really sophisticated report, folks. Get it from KKR. I
[13:16] Speaker 5: can't say enough about it right now. And it's simple.
[13:19] Speaker 5: Productivity-driven growth and increasing economic choke points for political gains.
[13:26] Speaker 5: It reinforces Henry McVeigh's view. We are indeed in a
[13:30] Speaker 5: regime change, and it moves to private equity. Why does
[13:34] Speaker 5: Scarlett Fu need private equity? IRA?
[13:38] Speaker 11: Well, ultimately, I think if you believe in compounding, which
[13:42] Speaker 11: we think is the eighth wonder of the world, you
[13:43] Speaker 11: guys talk about it all the time. That's what private
[13:45] Speaker 11: equity does. The second big point is that it actually
[13:49] Speaker 11: lends itself to operational improvements and companies making them better.
[13:53] Speaker 5: So you're not buying beta of the market.
[13:55] Speaker 11: You're actually buying alpha that's generated by making companies better.
[13:59] Speaker 11: We typically own At any time, 200 companies, we're using
[14:02] Speaker 11: the network of what we're seeing across all those companies
[14:05] Speaker 11: to share best practices and to drive growth for our owners.
[14:08] Speaker 5: Does Mr. McVeigh know that if there's a third Greek
[14:10] Speaker 5: letter mentioned, the trap door opens? Oh, yeah, yeah.
[14:13] Speaker 1: It's a Friday, so we'll let him off easy. What
[14:16] Speaker 1: happens in a higher interest rate environment, though, for private equity?
[14:19] Speaker 1: Because they've had a hard time being able to exit
[14:21] Speaker 1: some of their investments with borrowing costs elevated, and it's
[14:25] Speaker 1: only going to get more elevated.
[14:26] Speaker 11: Look, I'd say there are a couple of things, which
[14:28] Speaker 11: is interest rates is not your only lever, right? Your
[14:30] Speaker 11: best thing is how you run the business. There's going
[14:33] Speaker 11: to be a vintage of private equity that came through 2021.
[14:37] Speaker 11: And you see this in some of the software deals
[14:39] Speaker 11: where you paid high prices. That will be a little
[14:42] Speaker 11: bit of a bump in the night. But that's ultimately
[14:45] Speaker 11: why you need to diversify where you invest. And ultimately,
[14:48] Speaker 11: I think we have not been seeing that. And I
[14:51] Speaker 11: know this catches the media's attention all the time. But
[14:53] Speaker 11: if you look at our exits and we're publicly traded,
[14:56] Speaker 11: you can see we've had pretty substantial.
[14:58] Speaker 5: Exits of late.
[14:59] Speaker 1: What's the most common mistake or misunderstanding that individual investors
[15:02] Speaker 1: have when they allocate to private markets? Because this idea
[15:05] Speaker 1: of getting some private assets into your portfolio is kind
[15:08] Speaker 1: of new for individuals.
[15:09] Speaker 5: Kind of new. Revolutionary. It's to be long term.
[15:15] Speaker 11: Private equity is predicated on an illiquidity premium.
[15:18] Speaker 1: What, is long-term five years, 10 years?
[15:20] Speaker 11: Somewhere between five and 10 years. If you're coming in
[15:22] Speaker 11: and you need the money in six months, that's not
[15:24] Speaker 11: the best.
[15:24] Speaker 5: Okay, this is the heart of the matter. Good morning, Blackstone.
[15:27] Speaker 5: Love you. Good morning. Is there any other companies besides
[15:29] Speaker 5: Blackstone or BlackRock? The heart of the matter, Henry, is
[15:32] Speaker 5: this liquidity issue. Do we need to set up sensible
[15:36] Speaker 5: guardrails within ERISA programs, retirement programs, to make it efficacious
[15:42] Speaker 5: to wait five years to get that gross up from
[15:45] Speaker 5: private equity.
[15:46] Speaker 11: I was around when we actually introduced the 401ks into
[15:49] Speaker 11: the public markets in the 1990s when we took a
[15:52] Speaker 11: lot of these asset managers public. If you think about
[15:54] Speaker 11: somebody who's 35, they're going to be in the workforce
[15:57] Speaker 11: for 25 to 30 years. Taking some small proportion of
[16:00] Speaker 11: your savings and having that compound over time where you
[16:05] Speaker 11: don't have a threat of illiquidity, that is in my view.
[16:08] Speaker 5: Totally agree. Have you seen evidence that people will be
[16:10] Speaker 5: adults and do that? Or do they sell or ask
[16:13] Speaker 5: to sell on the first stress?
[16:15] Speaker 11: I think a lot of this gets to investor education,
[16:19] Speaker 11: which is what's the right vehicle?
[16:22] Speaker 5: Where are you?
[16:23] Speaker 11: What is your long-term goal? And ultimately, what's the best
[16:26] Speaker 11: vehicle for getting you there?
[16:28] Speaker 1: Henry, Tom talked about your regime change framework, and that
[16:31] Speaker 1: goes back to the end of COVID. I think 2022
[16:34] Speaker 1: is when you really started talking about it. But a
[16:36] Speaker 1: lot has changed since 2022, right? NVIDIA kicked off the
[16:39] Speaker 1: AI boom. You have the return of a new president
[16:42] Speaker 1: or old president, Trump, and his many policies, which have
[16:45] Speaker 1: proven to be inflationary, whether it's tariffs, the war, or immigration,
[16:49] Speaker 1: or the one big, beautiful bill. So how do you
[16:51] Speaker 1: fold those developments into this framework? Yeah.
[16:54] Speaker 11: So a couple of things I'd say at the heart
[16:56] Speaker 11: of what we're talking about is that stocks and bonds
[16:59] Speaker 11: are now positively correlated. So if you think about Liberation Day,
[17:02] Speaker 11: what happened? The dollar went down, bonds sold off and
[17:05] Speaker 11: stocks sold off. For the prior 20 years, you had
[17:09] Speaker 11: when stocks sold off, bonds rallied. And that's how you
[17:12] Speaker 11: diversify yourself. Our view is that is a more sustainable trend.
[17:16] Speaker 11: What's happened, I would say probably geopolitics has accelerated. That
[17:20] Speaker 11: was one of our key foundations. The second is the
[17:22] Speaker 11: deficits have accelerated. We have not left the call that
[17:26] Speaker 11: you're in this higher resting heart rate for inflation. And
[17:29] Speaker 11: so if you think about what KKR has done, more
[17:31] Speaker 11: operational improvement in private equity, more real assets in the portfolio,
[17:35] Speaker 11: and then credit be up in the capital structure where
[17:37] Speaker 11: you're not stuck in just a fixed investment.
[17:39] Speaker 5: In your brilliant regime change report, There's a chart of
[17:42] Speaker 5: the Sharpe ratio. William Sharpe, Stanford, X beta. You learn
[17:46] Speaker 5: three risk with the CFA3. Sharpe, Treanor, Jensen. Let's go
[17:51] Speaker 5: to the very Sharpe ratio with Henry McVeigh. It's irrefutable
[17:56] Speaker 5: with private equity. You pick up an efficacious Sharpe ratio
[18:00] Speaker 5: that will benefit someone in wealth management. Why the struggle now?
[18:06] Speaker 5: In terms of, let me drill down. Selling it to
[18:09] Speaker 5: the public. Yeah.
[18:10] Speaker 11: Look, I think when you look at, I mean, I
[18:12] Speaker 11: don't think that anybody at KKR, I think we think
[18:14] Speaker 11: that it should go into the wealth business, individual investor business,
[18:17] Speaker 11: but it doesn't have to be accomplished overnight. Again, I
[18:19] Speaker 11: get back to, we want to be thoughtful stewards. We
[18:22] Speaker 11: want to think about education. But when you think about
[18:25] Speaker 11: long-term retirement savings, that's the business KKR is in. We're
[18:29] Speaker 11: in the retirement security business. And if you can extend
[18:32] Speaker 11: that beyond just pensions and sovereign wealth funds and family offices.
[18:36] Speaker 11: It makes sense for individuals to have some portion of
[18:39] Speaker 11: their portfolio in that. But I don't think you want
[18:41] Speaker 11: to do this irresponsibly.
[18:42] Speaker 5: And I think where you've seen you've.
[18:43] Speaker 11: Seen this go back to Janice in the 1999s, like
[18:46] Speaker 11: taking way too much money in way too quickly.
[18:48] Speaker 5: It's hard.
[18:49] Speaker 11: That happened in the dotcom era. Everybody learned a lesson.
[18:51] Speaker 11: We've seen that in different areas. And so just slow
[18:54] Speaker 11: and steady wins the race is our 50th year at KKR.
[18:57] Speaker 11: This isn't our first radio. We've been around, and I
[19:00] Speaker 11: think you know our founders. Ultimately, you've got to have
[19:03] Speaker 11: a long-term focus.
[19:04] Speaker 5: It's too much. Janice, he's throwing massive shade at Denver.
[19:09] Speaker 11: But ultimately, concentration, all the things that apply to the
[19:13] Speaker 11: public markets apply to the private markets, which is have
[19:17] Speaker 11: linear deployment, think about concentration, think about leverage.
[19:20] Speaker 1: What would surprise people about your personal investment strategy?
[19:23] Speaker 11: So, I mean, obviously, with all the guardrails that I
[19:26] Speaker 11: serve as the CIO of the balance sheet, look, what
[19:29] Speaker 11: I would extrapolate is we do a lot in Asia,
[19:32] Speaker 11: particularly in Japan. And I think there's a lot going
[19:34] Speaker 11: on in Japan and Korea around corporate reform.
[19:37] Speaker 5: Most investors, I.
[19:38] Speaker 11: Think when they look at their individual accounts, they're highly
[19:41] Speaker 11: concentrated in the U.S. So that would be one thing
[19:43] Speaker 11: that I would keep in mind. The second is when
[19:47] Speaker 11: I think about what's going on in the infrastructure around
[19:49] Speaker 11: the world, that's something that we think is a big
[19:52] Speaker 11: theme where the public sector is having to hand that
[19:55] Speaker 11: off to the private sector. So that's been a big
[19:56] Speaker 11: part of what we're doing at KKR. And then I
[19:59] Speaker 11: think we hit on this earlier. I'm much more inclined
[20:02] Speaker 11: to own stocks over bonds. If we're in this higher
[20:04] Speaker 11: resting heart rate for inflation, I probably will be trimming
[20:07] Speaker 11: down my government bond holdings.
[20:10] Speaker 1: To how small? Not going to comment specifically on that.
[20:15] Speaker 11: But to me, equities are a great inflation hedge. And
[20:18] Speaker 11: a lot of what we're doing on the private side
[20:20] Speaker 11: is doing that. but also in a way that you're
[20:22] Speaker 11: improving the outlook for the company.
[20:24] Speaker 1: How about housing? How about property and real assets?
[20:27] Speaker 11: I mean, look, I think the American dream, in my view,
[20:30] Speaker 11: is changing, which is I think home ownership is important,
[20:34] Speaker 11: but I also think having employee ownership is important. And
[20:37] Speaker 11: we've been doing that at KKR through our program.
[20:39] Speaker 5: So I think that's an important part of the story.
[20:42] Speaker 1: Thank you, Henry. Really appreciate it. Henry McVeigh, partner at KKR.
[20:46] Speaker 1: Coming up next, Alicia Levine over at BNY Wealth. This
[20:49] Speaker 1: is Bloomberg Money.
[20:53] Speaker 5: You're listening to Bloomberg Money. Stay with us with more
[20:56] Speaker 5: to come after this. Welcome back. Bluebird money on an afternoon,
[21:06] Speaker 5: a Friday. Busy end of the week we will go,
[21:08] Speaker 5: end of the weekend as well. Scarlett Fu and Tom Keene.
[21:11] Speaker 5: I'm sort of exhausted by the week. I know.
[21:14] Speaker 1: It's been a lot. There's been a lot. The AI panic,
[21:16] Speaker 1: the Fed rate hike.
[21:17] Speaker 5: The Fed meeting.
[21:18] Speaker 4: Yeah.
[21:18] Speaker 1: And we've turned things around since that Fed meeting. We
[21:21] Speaker 1: had recovery on Thursday, and now we're back to being
[21:24] Speaker 1: down again. You look at stocks on Friday, and all
[21:27] Speaker 1: arrows lower, red arrows, with all the industry groups down
[21:31] Speaker 1: on the day.
[21:31] Speaker 5: We need to do a data check here?
[21:32] Speaker 1: We do.
[21:33] Speaker 2: Damn.
[21:34] Speaker 1: Can't get away from it, Tom.
[21:35] Speaker 5: There it is. I'm stuck. What's a VIX doing right now? 15.
[21:37] Speaker 5: That's a bull market VIX. I mean, that's unbelievable. I
[21:41] Speaker 5: thought we'd have a VIX at 22 where it's coming
[21:43] Speaker 5: to an end.
[21:44] Speaker 1: And even that with a 5% yield on the 10-year.
[21:46] Speaker 5: You would think so. And when oil was 109 a barrel.
[21:49] Speaker 5: How about a cross-asset data check? We look at that
[21:51] Speaker 5: for these bonds, currencies, commodities. You do that. Alicia Levine
[21:54] Speaker 5: coming up. That's the way sheet rolls. Oil, the story. 107,
[21:57] Speaker 5: 109 earlier. Comes back a little bit during the week.
[22:01] Speaker 5: But to me, and we don't have to talk about
[22:02] Speaker 5: it on Bloomberg. Money, but the dollar strength this week
[22:06] Speaker 5: is really a back story.
[22:07] Speaker 1: Yeah, it might be a good time to go traveling
[22:08] Speaker 1: if you can afford it.
[22:09] Speaker 5: All right.
[22:09] Speaker 1: Bloomberg Money is your new destination for personal finance. It's
[22:12] Speaker 1: a cross-platform effort that extends beyond your television screen and
[22:16] Speaker 1: includes our new digital hub at Bloomberg.com slash money. And Tom,
[22:19] Speaker 1: one of the most widely read stories on the Bloomberg
[22:21] Speaker 1: this week. and on our website, is the cutthroat competition
[22:25] Speaker 1: to get an entry-level job on Wall Street. You have
[22:27] Speaker 1: college freshmen competing for spots in student-run finance and investing
[22:31] Speaker 1: clubs that then feed into recruiting opportunities at some of
[22:35] Speaker 1: these banks. Some students are seeking coaching services that could
[22:38] Speaker 1: cost thousands or tens of thousands of dollars. Bloomberg Finance
[22:41] Speaker 1: Editor Dan Taub is here to break down the story.
[22:43] Speaker 1: And Dan, I mean, these jobs have always been competitive,
[22:46] Speaker 1: but we have entered a new era. Yep, that's right. Yeah.
[22:50] Speaker 9: I mean, the banks want the best recruits and they
[22:52] Speaker 9: want them as early as possible. So students have to
[22:56] Speaker 9: prepare a lot earlier than they used to starting like
[22:58] Speaker 9: freshman year, basically.
[23:00] Speaker 1: Which is crazy. And the acceptance rate for some of
[23:02] Speaker 1: these jobs is lower than to get into Harvard, right?
[23:05] Speaker 1: It's like 0.01 percent. Talk a little bit about these
[23:08] Speaker 1: student run finance club and investing clubs, because we talk
[23:10] Speaker 1: to folks who are doing them and it's competitive to
[23:13] Speaker 1: get into those.
[23:14] Speaker 5: Correct.
[23:14] Speaker 9: Yeah, it's harder to get into those clubs than to
[23:16] Speaker 9: get into the school in the first place. And part
[23:18] Speaker 9: of the reason is because they learn the skills at
[23:20] Speaker 9: those clubs. They help them get the internships and then
[23:23] Speaker 9: help them get the jobs. So some of the things
[23:26] Speaker 9: they learn are how to read balance sheets, how to
[23:28] Speaker 9: look at cash flow statements, how to value deals and
[23:32] Speaker 9: also had him you.
[23:33] Speaker 5: Know this is brilliant the difference here is these kids
[23:36] Speaker 5: are really lumber terminal helping I'm talking our book lumber
[23:39] Speaker 5: terminal helping out these kids are looking at the four
[23:41] Speaker 5: accounting statements I was looking at the back of the
[23:43] Speaker 5: beer can to see if the beer was made in
[23:45] Speaker 5: Canada or the US right now are these kids too
[23:48] Speaker 5: smart is that why it's too competitive.
[23:51] Speaker 9: Well, I mean, the kids are smart. I mean, the
[23:52] Speaker 9: kids in these clubs who get into them are obviously
[23:55] Speaker 9: top to top. But, you know, it's also, you know,
[23:58] Speaker 9: the job market is competitive these days. And, you know,
[24:01] Speaker 9: if you're preparing for a field that they, you know,
[24:04] Speaker 9: have jobs. Coding is not what it used to be
[24:06] Speaker 9: in the age of AI. So if you want a
[24:08] Speaker 9: finance job and you know it's going to be like
[24:10] Speaker 9: less than 1% chance you'll get acceptance at J.P.
[24:13] Speaker 5: Morgan or Goldman Sachs.
[24:14] Speaker 1: You have to prepare. You have to prepare. And, you know,
[24:16] Speaker 1: these jobs pay well in a time when it's hard
[24:19] Speaker 1: to just get a paying job. Bloomberg Finance Editor Dan Taub,
[24:22] Speaker 1: thank you so much.
[24:23] Speaker 5: Right now, this is a joy. She was at Brown University.
[24:27] Speaker 5: She's doing okay. So she got her fourth, fifth, sixth internship,
[24:31] Speaker 5: and then she wandered over to Chicago and did brilliant mathematics.
[24:35] Speaker 5: Alicia Levine owns a high ground on linking mathematics into
[24:38] Speaker 5: all that we do within our personal finance, our retirement,
[24:42] Speaker 5: our wealth management, holding court as chief investment officer at
[24:46] Speaker 5: BNY Wealth. What's the biggest mistake you see in the
[24:49] Speaker 5: day-to-day grind of at BNY that people are doing on
[24:52] Speaker 5: their retirement?
[24:54] Speaker 6: I think the biggest mistake that we see, like we're
[24:58] Speaker 6: in the wealth business, is wanting to trade the allocations
[25:02] Speaker 6: or wanting to swap out all the time because of
[25:05] Speaker 6: headlines and essentially trying to pretend that building wealth is
[25:10] Speaker 6: the same thing as being a hedge fund manager. That
[25:12] Speaker 6: is the biggest mistake.
[25:14] Speaker 2: That we see.
[25:15] Speaker 6: And that is one of our messages that we always
[25:16] Speaker 6: talk about, which is wealth is built over decades and
[25:21] Speaker 6: that trading actually gives you worse returns than if you
[25:25] Speaker 6: did the hypothetical experiment and you missed the five best
[25:30] Speaker 6: days of the year or the 10 best days of
[25:32] Speaker 6: the year. You underperformed by 5% annualized returns. you know,
[25:36] Speaker 6: going forward over the next 20 years.
[25:37] Speaker 5: Do you blame Scarlett Fu and the media?
[25:40] Speaker 6: No, I don't blame the media because there are plenty
[25:43] Speaker 6: of businesses out there that are hedge funds, that are trading,
[25:47] Speaker 6: that are using derivatives, trying to hedge some near-term risk.
[25:51] Speaker 6: But the wealth, building wealth is very, very different. And
[25:54] Speaker 6: building a future where you feel confident is very different
[25:58] Speaker 6: than trading. And it's not day trading and it's not
[26:00] Speaker 6: even annual trading. And I think that's the biggest business
[26:03] Speaker 6: because We.
[26:04] Speaker 2: Hear scary stories. We hear tariffs. We hear war. We
[26:07] Speaker 2: hear oil at 105.
[26:08] Speaker 1: And you feel.
[26:09] Speaker 2: Like you have to get out. You have to do this.
[26:11] Speaker 6: And in the end, those typically, 100% of the time,
[26:15] Speaker 6: tend to be mistakes.
[26:16] Speaker 2: And look at 2008.
[26:16] Speaker 6: That was a mistake as well. When the markets started rallying,
[26:20] Speaker 6: it was like a... It was like a rocket to
[26:23] Speaker 6: the upside.
[26:23] Speaker 1: So I feel like I think about the investment products
[26:26] Speaker 1: that do really well, that get a lot of inflows.
[26:28] Speaker 1: And you could talk about buffer ETFs. You could talk
[26:30] Speaker 1: about these equity income ETFs using derivatives to generate high yields.
[26:34] Speaker 1: Is there a place for that kind of strategy, that
[26:36] Speaker 1: kind of thinking, that kind of approach in your retirement
[26:38] Speaker 1: account at all?
[26:39] Speaker 6: So there is a place for that. But I think
[26:41] Speaker 6: it's really I think you just go back to the
[26:44] Speaker 6: simple thing, which is what are you trying to do?
[26:46] Speaker 6: You're trying to grow your capital.
[26:48] Speaker 2: End of sentence.
[26:50] Speaker 6: So there's a really easy way to grow capital, and
[26:53] Speaker 6: that's equities, and that's being fully diversified globally in all sizes,
[26:57] Speaker 6: and you let it run.
[26:59] Speaker 2: And the question you have to ask yourself is, when
[27:00] Speaker 2: am I retiring? When do I think I'm retiring, and when.
[27:04] Speaker 6: Do I have to start transitioning towards protecting those gains
[27:08] Speaker 6: or something more conservative?
[27:10] Speaker 2: But if you're in the growth phase, it's pretty simple.
[27:14] Speaker 5: Alicia Levine with us writing 24-7. Let's look at the
[27:16] Speaker 5: latest note here. As we can, the earnings in CapEx backdrop, well,
[27:20] Speaker 5: it remains much stronger than in prior tightening cycles. That's
[27:24] Speaker 5: why Alicia Levine's seeing resilience. Inflation-sensitive assets deserve attention. Is
[27:31] Speaker 5: a general statement at BNY, are people too afraid? Are
[27:34] Speaker 5: they too much in cash, too much in bills, notes,
[27:36] Speaker 5: and bonds of lesser duration instead of, not the cliche
[27:40] Speaker 5: of owning Nvidia, but just being in the market?
[27:43] Speaker 6: So, I'd say people have been worried really since 2020, right?
[27:48] Speaker 6: People are just worried a lot because it's been a
[27:50] Speaker 6: very noisy period.
[27:51] Speaker 2: A lot of geopolitical events.
[27:53] Speaker 6: We see the fracturing of the world trade system and
[27:56] Speaker 6: we see the building of debt.
[27:57] Speaker 2: The $ 40 trillion. Again, these are the headlines. I'd say
[28:00] Speaker 2: people are worried all the time.
[28:03] Speaker 6: I wouldn't say that there's a lot of cash out
[28:05] Speaker 6: there because the cash tends to be pretty steady, right?
[28:10] Speaker 2: We talk about what's a money market account.
[28:12] Speaker 1: Yeah, $ 8 trillion.
[28:13] Speaker 6: Yeah, but as a percent of the S & P,
[28:15] Speaker 6: it's smaller than it was 15 years ago, even though
[28:17] Speaker 6: the absolute number is higher. We talk about the absolute number,
[28:20] Speaker 6: but as a percentage of the S & P, it's
[28:22] Speaker 6: actually smaller.
[28:24] Speaker 2: I think the issue is that.
[28:26] Speaker 6: There's more conversation about why you should not be trying
[28:29] Speaker 6: to trade this, why you should not be going to
[28:31] Speaker 6: cash over time. And one down year in the market
[28:34] Speaker 6: does not make it a reason to get out of
[28:37] Speaker 6: the market because we all know that there are downturns
[28:40] Speaker 6: in markets. And that's that's fairly normal.
[28:42] Speaker 1: Well, speaking of scary headlines, the $ 40 trillion in national
[28:45] Speaker 1: debt that we have out there, this idea has been
[28:49] Speaker 1: prominent for decades. But even the experts are now talking
[28:52] Speaker 1: about it with this new level of urgency that we
[28:54] Speaker 1: haven't heard before. We've, of course, yet to see a
[28:56] Speaker 1: policy response, and it's going to take a lot of
[28:58] Speaker 1: pain from either side. So that's why we probably haven't
[29:02] Speaker 1: seen anything. But is this idea of all this debt
[29:05] Speaker 1: actionable for individual investors, especially when it comes to people's
[29:08] Speaker 1: exposure to treasuries or to municipal bonds?
[29:11] Speaker 5: Yeah.
[29:11] Speaker 6: So I'd say the actual number, in a sense, is
[29:14] Speaker 6: part of the growing story of the growing debt.
[29:17] Speaker 2: I feel every few years we have a panic. It's
[29:19] Speaker 2: a big number. It's a round number. It's a zero number.
[29:21] Speaker 6: It's a five number, like birthdays, and it tends to
[29:24] Speaker 6: get people's attention. I'd say for now, what we're doing
[29:27] Speaker 6: in our client portfolios is really being in the belly
[29:30] Speaker 6: of the curve, intermediate to short-term duration, five.
[29:33] Speaker 2: To 10 year. I think there's risk any longer duration here.
[29:37] Speaker 2: There is concern that.
[29:39] Speaker 6: I think the Fed hiking right now into what is
[29:45] Speaker 6: the inflation that's being caused by the increase in oil
[29:47] Speaker 6: prices may not be that effective, actually. And so what
[29:52] Speaker 6: kind of inflation hedge can we have in portfolios? And
[29:54] Speaker 6: that's what we're doing in portfolios here. So it's not
[29:57] Speaker 6: just like short and intermediate bonds, but also looking at
[30:00] Speaker 6: real assets and infrastructure. You just had a previous conversation
[30:03] Speaker 6: about that as well, because we think we're just in
[30:06] Speaker 6: a higher inflationary world since COVID, the reshoring, the friend shoring,
[30:12] Speaker 6: the nationalizing of businesses for critical industries, whether it's you know,
[30:18] Speaker 6: pharmaceuticals or whether it's chips, manufacturing capacity, that's all coming
[30:23] Speaker 6: back to home countries.
[30:25] Speaker 2: It's happening in Europe as well. And that is inflationary.
[30:29] Speaker 6: And there is no central bank that's going to hike
[30:31] Speaker 6: high enough to squeeze it out to get to 2%.
[30:33] Speaker 1: Yeah, to address it.
[30:34] Speaker 2: I'm going to do it.
[30:35] Speaker 5: Can I do a Bloomberg Money Audible?
[30:36] Speaker 1: Do it.
[30:37] Speaker 5: We can do this with Alicia Levine. I think of
[30:39] Speaker 5: everyone I know in the game, and there's a few others.
[30:42] Speaker 5: I think of Anna Wong. out of Chicago as well
[30:45] Speaker 5: with Bloomberg, you have prodigious math abilities to move folks
[30:51] Speaker 5: to get fancy about it, to move not in the
[30:53] Speaker 5: XY space, but to move almost three-dimensionally through this act.
[30:57] Speaker 5: It's profound, and you do it every day. Alicia, when
[31:00] Speaker 5: did math happen for you? Math in girls is a really,
[31:05] Speaker 5: really delicate thing.
[31:07] Speaker 2: Not in my world.
[31:07] Speaker 5: Math in girls.
[31:09] Speaker 1: Love that answer.
[31:10] Speaker 5: What was the catalyst that got Alicia Levine math-ed? Go.
[31:15] Speaker 6: OK, this is so Matt, let me say it was
[31:18] Speaker 6: arithmetic and that was early and that was like second nature.
[31:24] Speaker 6: And I've never thought about arithmetic. It just happens. And
[31:27] Speaker 6: that was first or second grade. And then we had
[31:31] Speaker 6: a public school system, New York City public schools, second
[31:34] Speaker 6: grade in Queens. Our teacher decided that we all should
[31:38] Speaker 6: be doing fourth and fifth grade math, and she taught
[31:40] Speaker 6: it in second grade. And nobody ever complained, and no
[31:43] Speaker 6: one ever said girls couldn't do it. And my cohort,
[31:46] Speaker 6: girls were doing math. And there was no conversation around it.
[31:50] Speaker 2: We just did it.
[31:51] Speaker 1: How hard is it going to be to be a
[31:52] Speaker 1: math major and be able to find jobs in the
[31:55] Speaker 1: age of AI?
[31:56] Speaker 6: That's an interesting question. I think it's not just math.
[31:58] Speaker 6: I think it's a lot of it. I think you're
[32:00] Speaker 6: best up with a math major right now over many
[32:02] Speaker 6: other majors because the ability to think critically and to
[32:07] Speaker 6: reframe a question in a different way is very much
[32:12] Speaker 6: a mathematical way of thinking. If I change this variable,
[32:15] Speaker 6: if I change this input, I'm going to get a
[32:17] Speaker 6: different output. That's what math teaches you to do. It
[32:19] Speaker 6: teaches you to think.
[32:20] Speaker 5: You've been great about the bond market really not giving
[32:24] Speaker 5: us total return over X number of years, and yet
[32:28] Speaker 5: it's still bonds, bonds, bonds. Are you lesser bonds now?
[32:32] Speaker 6: So we are technically underweight bonds given our benchmark allocation,
[32:37] Speaker 6: but we do have an allocation to emerging market debt,
[32:40] Speaker 6: and we do have an allocation.
[32:41] Speaker 2: To high yield, which has been very additive.
[32:43] Speaker 6: It's been the core bond portfolio that's been more challenged
[32:48] Speaker 6: than the EM debt or the high yield. So we
[32:50] Speaker 6: do like fixed income. We're just not focused on, you.
[32:54] Speaker 2: Know, the treasuries.
[32:55] Speaker 1: You just see it playing a different role.
[32:56] Speaker 6: We see it playing a different role because if we're
[32:59] Speaker 6: going to be in fixed income, we want to know
[33:01] Speaker 6: why we're there.
[33:02] Speaker 2: So we have all kinds of clients, right?
[33:03] Speaker 6: Someone The keep me rich, the preservation, or I want
[33:07] Speaker 6: less risk in my portfolio. And there are ways of
[33:09] Speaker 6: doing that. And so we do different parts of the
[33:11] Speaker 6: fixed income market. So we still like fixed income. It's
[33:14] Speaker 6: just not as heavily weighted. And again, it's really where
[33:17] Speaker 6: you are in your life cycle. Are you in the
[33:19] Speaker 6: growth phase or are you in the consolidation? And I
[33:23] Speaker 6: want to keep what I have. And then we have
[33:24] Speaker 6: to allocate differently for that.
[33:25] Speaker 5: We're going to work from home. I got 30 seconds.
[33:29] Speaker 5: Is BNY saying let's go six days in the office?
[33:32] Speaker 2: We're back in the office.
[33:33] Speaker 5: You're back in the office.
[33:33] Speaker 2: It's not even a question.
[33:34] Speaker 5: Are the men wearing suits?
[33:36] Speaker 6: No.
[33:37] Speaker 5: They're not wearing suits. We're not there yet. They're wearing
[33:39] Speaker 5: like Damien Sassauer.
[33:41] Speaker 1: They're super casual into the office, and then when they
[33:44] Speaker 1: go out at night, that's when they wear their suits.
[33:45] Speaker 5: This is going to be great. Alicia Levine on the
[33:47] Speaker 5: cutting edge. She says suits. Thank you so much. With
[33:50] Speaker 5: BNY Wealth, Chief Investment Officer Alicia Levine. That's what we're
[33:53] Speaker 5: going to talk about here. Scarlett demanded that the well-clothed
[33:58] Speaker 5: in suits, not always bow ties.
[34:00] Speaker 1: No. I don't think the bow ties are back in.
[34:03] Speaker 1: Suits are back in for sure. Tailored suits.
[34:05] Speaker 5: Tailored suits.
[34:06] Speaker 2: Yeah.
[34:06] Speaker 1: And sometimes wide-legged pants, which I'm not sure I'm into.
[34:09] Speaker 1: The Emmys, they didn't look good on some of the people.
[34:11] Speaker 5: Who wore them. Why did I know you watched? Should
[34:13] Speaker 5: I watch Willow Bay, the show?
[34:15] Speaker 1: Widow's Bay?
[34:16] Speaker 5: Willow Bay. Yeah, I call it Willow Bay. Good morning, Mr. Iger.
[34:19] Speaker 1: Do you like horror? Do you like comedy? It's kind
[34:22] Speaker 1: of a mixture of both.
[34:23] Speaker 5: I don't know. I may watch Widow Bay. You're listening
[34:31] Speaker 5: to Bloomberg Money. Stay with us with more to come
[34:35] Speaker 5: after this.
[34:45] Speaker 1: Here in New York, we've all returned to the office.
[34:47] Speaker 1: Dress codes, though, are more relaxed than ever across industries,
[34:50] Speaker 1: not just on Wall Street. Chris Rauser, Bloomberg's editor for
[34:53] Speaker 1: Global Luxury Coverage, sees a new trend emerging. He writes,
[34:56] Speaker 1: the pandemic seemed as if it finally marked the death
[34:59] Speaker 1: knell of the suit, and yet something improbable has started
[35:02] Speaker 1: happening in recent years. The suit is making a comeback.
[35:06] Speaker 1: Chris joins us now to discuss, and he's in his
[35:08] Speaker 1: suit as well as his bow tie.
[35:10] Speaker 5: Yes.
[35:11] Speaker 1: Great to have you here, Chris.
[35:12] Speaker 5: What are you laughing at?
[35:14] Speaker 3: I did. I asked Scarlett for permission to wear the
[35:16] Speaker 3: bow tie on with you.
[35:17] Speaker 5: You didn't ask me. That's wonderful.
[35:18] Speaker 1: That's why it's funny.
[35:19] Speaker 5: Is it tie tie or is it fake-o-tie?
[35:21] Speaker 3: Tie tie.
[35:22] Speaker 5: Thank you.
[35:22] Speaker 3: I went to boarding school.
[35:23] Speaker 4: Come on.
[35:25] Speaker 1: You think about the companies that benefit from the return
[35:28] Speaker 1: of suits. Taylor Brands, which owns Men's Warehouse and Joseph A. Bank,
[35:31] Speaker 1: they filed for an IPO. This is a real thing.
[35:33] Speaker 3: They went bankrupt in 2020. And Brooks Brothers also went bankrupt.
[35:38] Speaker 3: The pandemic should have been an extinction-level event for suiting,
[35:42] Speaker 3: for tailors, especially mass suiting, because people came back to
[35:45] Speaker 3: the office and didn't dress up anymore. I used to
[35:48] Speaker 3: wear a lot of suits to this office, and then
[35:49] Speaker 3: I sort of stopped a few years after the pandemic.
[35:53] Speaker 3: And then When people started going to weddings again and
[35:57] Speaker 3: people started having events, they started buying suits again. People
[36:00] Speaker 3: lost a lot of weight because of GLP-1 and had
[36:04] Speaker 3: different shapes and sizes. And then a funny thing happened
[36:08] Speaker 3: in the past few years where, after that boom of
[36:10] Speaker 3: people coming back and having to buy suits because weddings
[36:12] Speaker 3: were happening again, People stopped having to wear suits, have
[36:16] Speaker 3: to wear suits to work and stuff, and they started
[36:18] Speaker 3: wearing suits for fun. So now the thing that's like
[36:21] Speaker 3: really hopping at Brooks Brothers, for example, is fashion suiting.
[36:23] Speaker 3: It's fun suits with fun colors and textures. Same thing
[36:27] Speaker 3: at Men's Wearhouse and all these other smaller independent brands.
[36:30] Speaker 1: And you went to visit a Japanese suit maker who
[36:32] Speaker 1: comes to New York twice a year to take orders.
[36:35] Speaker 1: And the getting to know you process between tailor and
[36:37] Speaker 1: customer was really fascinating because it wasn't like, where do
[36:40] Speaker 1: you work? What kind of office is it? It was
[36:42] Speaker 1: about like, what's your interest?
[36:43] Speaker 2: This is amazing.
[36:44] Speaker 6: Yeah.
[36:44] Speaker 3: Right when I started reporting this story, I went to
[36:46] Speaker 3: the Armory, which is a wonderful men's wear shop on
[36:49] Speaker 3: the Upper East Side. And this tailor, Taylor Cade, Yamamoto-san,
[36:53] Speaker 3: comes from Tokyo twice a year, doesn't speak English. And
[36:56] Speaker 3: he comes and he has these total fans that come
[36:59] Speaker 3: and they do orders with him. And working through interpreters,
[37:02] Speaker 3: he talks to them about what they like, how they live.
[37:05] Speaker 3: Do you like 70s rock and roll? Do you like sailing?
[37:08] Speaker 3: And so all these people, I talked to like a
[37:10] Speaker 3: guy who owns a saxophone shop in Boston. I talked
[37:12] Speaker 3: to a guy who is an engineer at Google who
[37:15] Speaker 3: wears three-piece suits to work at Google where everyone's wearing t-shirts.
[37:18] Speaker 5: Wow.
[37:18] Speaker 3: Like, there are people who, once they figured out that
[37:22] Speaker 3: suits can express you and something about you, it doesn't
[37:25] Speaker 3: have to be this uniform.
[37:25] Speaker 5: I miss all the time on this. This is Ralph Fitzgerald,
[37:28] Speaker 5: which is the same act. Like, a lot of people
[37:30] Speaker 5: are into it. I won't bore people with the huge
[37:33] Speaker 5: success he's having right now. But the answer is, he
[37:35] Speaker 5: says this is all about America. He's from England. He
[37:38] Speaker 5: cut cloth for Huntsman years ago. And he moved to
[37:42] Speaker 5: New York just because this is where the return of
[37:45] Speaker 5: the suit is.
[37:46] Speaker 3: Yeah, you're seeing a lot of new tailor shops here.
[37:48] Speaker 3: You're seeing a lot of tailors from London move their
[37:51] Speaker 3: cutters here. Dunhill's opening up a shop for the first
[37:54] Speaker 3: time here coming up later this year. So I think
[37:58] Speaker 3: it really is American.
[37:59] Speaker 5: We've got to bring it up. With Chris, folks, now
[38:02] Speaker 5: we can only do this because I don't have a
[38:03] Speaker 5: clue what I'm talking about. Oh, my gosh. Should I
[38:06] Speaker 5: be wearing white sneakers with my beautiful Fitzgerald suit? I mean,
[38:10] Speaker 5: this is like the new thing. I see it on TV,
[38:12] Speaker 5: like in Washington. It's not working for me, Chris. Is
[38:15] Speaker 5: it working for you?
[38:16] Speaker 3: I do it sometimes, I got to say, because I
[38:18] Speaker 3: have bad feet. So I do sometimes wear a sneaker for, yeah,
[38:21] Speaker 3: for like orthopedic reasons.
[38:22] Speaker 5: Roger Federer can get away with it. He's the only
[38:24] Speaker 5: guy in the world.
[38:25] Speaker 1: That can get away with it.
[38:26] Speaker 3: It's a very Silicon Valley thing too, right? To wear
[38:29] Speaker 3: a white sneaker.
[38:29] Speaker 1: They don't dress well, I'm sorry.
[38:31] Speaker 3: Yeah, well, fair enough. I think a lot of people
[38:33] Speaker 3: are doing it. I don't know that you need to
[38:34] Speaker 3: do it. I think you probably look better with a
[38:36] Speaker 3: dress shoe.
[38:37] Speaker 1: Or his Doc Martens. That's what you wear with your suits.
[38:39] Speaker 5: I have a bunch of things, but yeah, I think
[38:41] Speaker 5: Doc Martens, they're doing some different things. The ones I
[38:43] Speaker 5: wear are building their English factory, like the original factory
[38:47] Speaker 5: and all that. What's a suit cost? It really varies.
[38:51] Speaker 3: At Bloomingdale's, where they saw the suits go down and
[38:54] Speaker 3: then come up again, it was like a wild ride,
[38:56] Speaker 3: the men's guys in there. You can get a suit
[38:59] Speaker 3: for like $ 500, $ 600 from Hugo Boss and some of
[39:01] Speaker 3: their entry-level stuff, and they have all the way up
[39:03] Speaker 3: to like $ 7, 000 at Zenya.
[39:05] Speaker 5: OK, we do some books here right now. I had
[39:08] Speaker 5: to go to Alan Flusser. I mean, he dressed Michael
[39:11] Speaker 5: Douglas for Gordon Gekko.
[39:12] Speaker 1: Oh, really?
[39:12] Speaker 5: I mean, he's like absolutely definitive into the age. This
[39:15] Speaker 5: was the Bible. There was all these like dress for
[39:17] Speaker 5: success stuff. I see you get the preppy thing from
[39:21] Speaker 5: years ago. This is the book that changed the debate
[39:24] Speaker 5: in America, said subdued colors look like an adult act like,
[39:29] Speaker 5: you know, and there's different people. mike bloomberg gets his
[39:31] Speaker 5: suits made in brooklyn only one place mike bloomberg will
[39:34] Speaker 5: go i used.
[39:34] Speaker 3: To greenfield does he go to mark yeah that's where
[39:36] Speaker 3: this suit is from.
[39:37] Speaker 5: Oh that's very good no wonder you got a raise
[39:39] Speaker 5: this year and i didn't that's good guys but there's
[39:42] Speaker 5: my book alan flusser it's the bible it's still apt.
[39:44] Speaker 1: Today What about your book? What did you bring for us?
[39:46] Speaker 3: Oh, I brought the Preppy Handbook. Preppy is having a
[39:49] Speaker 3: real big moment in America and internationally, Spain, Japan. And
[39:53] Speaker 3: this is the original Bible here.
[39:55] Speaker 1: Which is meant to be tongue-in-cheek.
[39:56] Speaker 3: I mean, it is tongue-in-cheek, but it's hilarious. And then
[39:59] Speaker 3: after you and I talked before the show, I brought
[40:00] Speaker 3: Take Ivy, which is.
[40:02] Speaker 5: This is the guy that you talked about.
[40:04] Speaker 3: Yes, this is a photographer who went to a Japanese
[40:06] Speaker 3: photographer who went to the Ivy League in the 60s
[40:09] Speaker 3: and took all these photographs of American Ivy style and
[40:11] Speaker 3: brought them back to Japan and started the whole wave
[40:13] Speaker 3: of just obsession.
[40:14] Speaker 1: And it led to the creation of Uniqlo and the
[40:16] Speaker 1: look that we have there. So there's a legacy. Oh, no,
[40:19] Speaker 1: it's great. There's a good podcast on all this. It's
[40:21] Speaker 1: Articles of Interest by Avery Truffleman. So you should listen
[40:24] Speaker 1: to that. Anyway, Chris, thank you so much.
[40:26] Speaker 5: Thank you, guys.
[40:27] Speaker 1: Chris Rauser on the return, the comeback of Suits. He,
[40:30] Speaker 1: of course, heads up our Pursuits coverage, our global luxury coverage.
[40:33] Speaker 1: And for the latest recommendations and recommendations from Bloomberg, subscribe
[40:36] Speaker 1: to the On Books newsletter.
[40:39] Speaker 5: Good afternoon, everyone. Bloomberg Money on a Friday in New York,
[40:41] Speaker 5: the bustle of New York City. Lisa Mateo, of course,
[40:44] Speaker 5: will be with Bloomberg this weekend, the U.N. meetings and
[40:47] Speaker 5: all that. As you said, crosstown traffic.
[40:50] Speaker 1: Don't go across.
[40:51] Speaker 5: You need three cars.
[40:52] Speaker 1: Yeah, you have to walk the whole time.
[40:54] Speaker 5: Well, the Plaza Hotel on Sunday. Life is tough.
[40:57] Speaker 1: Life is tough for some people. But Lisa gets to
[40:59] Speaker 1: report from there because the Qatari Economic Forum is taking place.
[41:02] Speaker 1: And that's where Bloomberg this weekend will be. Yes. QEF.
[41:04] Speaker 4: We're going to be there on Sunday. And just the
[41:07] Speaker 4: magnificence of it. I mean, the history, the history behind
[41:10] Speaker 4: it as well. A lot going on.
[41:12] Speaker 2: You have QEF.
[41:13] Speaker 1: You have UNGA going on. The city is.
[41:15] Speaker 4: Just pumping the restaurants, the hotels, everything. But the plaza itself,
[41:19] Speaker 4: the history behind it, if you would like, just curious
[41:22] Speaker 4: about the Royal Suite, it'll cost you anywhere from $ 38, 000
[41:25] Speaker 4: to $ 50, 000 a night. So you get a lot for that.
[41:29] Speaker 1: I'm sure it's booked all week.
[41:30] Speaker 4: You get a lot. You get about three bedrooms. You
[41:32] Speaker 4: get a private elevator. You get 24-hour butler service, a
[41:36] Speaker 4: number of bathrooms, too, to accommodate people. A dining room
[41:40] Speaker 4: that seats 12 in case you want to have like
[41:42] Speaker 4: a whole big group there.
[41:43] Speaker 2: A chef's kitchen.
[41:44] Speaker 4: A private gym it has, too, in itself.
[41:47] Speaker 1: It's part of the room. Yes, and a library as well.
[41:50] Speaker 4: Overlooks Fifth Avenue. So that's just to give you an
[41:52] Speaker 4: idea of that.
[41:53] Speaker 1: Is that where you're going to be interviewing people?
[41:55] Speaker 4: That's where I'm staying the night when we do book readings.
[41:58] Speaker 5: The president wants two scoops.
[42:00] Speaker 1: Mr.
[42:01] Speaker 5: President, you and Lisa Mateo, 16 scoops of assorted ice cream,
[42:06] Speaker 5: whipped cream, M & M' s, chocolate caramel, raspberry. This is
[42:10] Speaker 5: popping $ 350 before the $ 77 service fee. But you know.
[42:15] Speaker 4: What made a cameo?
[42:16] Speaker 5: In-room service.
[42:18] Speaker 1: The Home Alone movie. The Home Alone scene. Yes. The
[42:20] Speaker 1: President was there in that movie. He made a cameo.
[42:23] Speaker 2: He did, right when he was walking through the hall.
[42:25] Speaker 1: Tim Curry also had a cameo in that movie. Or no,
[42:27] Speaker 1: it wasn't a cameo. It was an actual role.
[42:30] Speaker 4: But they have a whole Home Alone package that you
[42:32] Speaker 4: can have there.
[42:32] Speaker 2: Take you for the limo ride and everything.
[42:33] Speaker 5: You had some important conversations this weekend. I mean, within
[42:36] Speaker 5: the uproar that Scarlett and I have been reporting on
[42:38] Speaker 5: all week.
[42:39] Speaker 2: Oh, most definitely.
[42:40] Speaker 5: The backdrop is not a Home Alone Sunday. The backdrop
[42:43] Speaker 5: is some serious conversation.
[42:45] Speaker 2: Yes, some serious conversation. It's Christina Ruffini, David Gurra. They'll
[42:48] Speaker 2: be going.
[42:48] Speaker 1: We're starting at 7 a.m.
[42:49] Speaker 4: We're going all the way through till about 1 p.m.
[42:52] Speaker 4: So it's going to be a long day. A lot
[42:53] Speaker 4: of guests filled up within there. And they're excited for it.
[42:56] Speaker 4: We've been prepping for it for a long time. We
[42:58] Speaker 4: have a great team behind us.
[43:00] Speaker 2: For this.
[43:01] Speaker 1: And they're just excited about it. I see Jenny Johnson.
[43:04] Speaker 1: I see Howard Marks. You've got a gold star panel
[43:08] Speaker 1: here of guests coming up that'll kind of set the
[43:10] Speaker 1: tone for this new era of the economy and investing
[43:14] Speaker 1: that we have here upon us. Lisa, thank you so much.
[43:16] Speaker 1: Lisa Mateo of Bloomberg This Weekend. Be sure to watch
[43:19] Speaker 1: Bloomberg This Weekend every Saturday and Sunday morning, starting at
[43:21] Speaker 1: 7 a.m. Eastern time with that special coverage of QEF
[43:25] Speaker 1: on Sunday.
[43:26] Speaker 5: That's all. It is Bloomberg Money. It's been an extraordinary week.
[43:30] Speaker 5: I mean, I can't imagine staggering into October here.
[43:34] Speaker 1: I can't wait for next Friday. Can you imagine what's
[43:36] Speaker 1: going to happen?
[43:36] Speaker 5: Thank you to our team. It's so wonderful that Kieran
[43:40] Speaker 5: picked up a Home Alone Sunday for us all to
[43:42] Speaker 5: have here.
[43:43] Speaker 1: At the end.
[43:44] Speaker 5: Good afternoon. This is the Bloomberg Money Podcast, bringing you
[43:53] Speaker 5: a smart look at the forces shaping your financial life.
[43:57] Speaker 5: I'm Tom Keen with Scarlett Fu. You can watch the
[44:00] Speaker 5: show live on Bloomberg TV every Friday at noon Wall
[44:04] Speaker 5: Street time. Subscribe to the podcast on Apple, Spotify, or
[44:09] Speaker 5: wherever you listen. And as always, on the Bloomberg Terminal
[44:13] Speaker 5: and the Bloomberg Business app.

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