Bloomberg The Open 11/09/2023

@19:33 George Bory, Allspring. "It's not binary." Bingo! "Rolling recession." Some sectors hit harder than others. Wall Street, high cost of money cutting into trading margins – look at RobinHood job cuts! Sorry to pick on you Matt, but I think you are missing the possibility that… "It's different this time." Chinese expats (and other wealthy foreign buyers) who don't bat an eye purchasing a million dollar California home for cash. Have you seen the RE prices in Hong Kong, Beijing, Shanghai? Baby boomer couple in California sells their home, moves to another part of the country, big wad of cash to purchase property in the heartland. Locals may resent it, but it stimulates the local economy. Younger couples priced out of 'California', following on the baby boomers' heels, looking for more affordable home ownership to raise families, filling much needed support positions. Rinse, repeat! It's called an 'economy'. Mid-sized cities in America's heartland — Bend, OR; Boise, ID; Salt Lake City, UT; Little Rock, AR; Asheville, NC. Cities large enough that have services (hospital healthcare) baby boomers need in nice peaceful settings. Type any of these cities into the internet – look at the pictures! How can a CA baby boomer not be interested?

@14:54 CORE inflation. Matt Miskin, Hancock – who I respect a lot – I respectfully disagree. Matt thinks CORE is coming down because shelter costs are coming down. I guess it might depend on the market, but this is definitely NOT the case in my neck of the woods. The elephant in the room that nobody talks about is… CHINA! Mohamed once brought up this point awhile back – he is the only one who addresses it. Chinese people love real estate! Thirsty for it! Prices in the mother country high, expats coming to (certain markets?) America and propping up real estate markets, buying fixtures appliances furniture big ticket items that fuel… INFLATION! CORE INFLATION! When are 'experts' going to address this dynamic???? It's not (completely) about the American consumer anymore. Although many Americans are working thanks to this INFUSION.

The cyclical nature is fascinating. Mohamed asks, "who are the buyers?" Look at Japan. The buyers are the people! No different here in the USA. Old folks looking for a 'risk-free' return. Don't invest in this volatile bond market, park your dollars in CDs, money markets which lock in a rate for a period of time. Let the institutional investors play with the notes and bonds. The old inflation adage, “the best cure for high prices, is high prices," can be applied to the bond market as well.

Your videos are always so well-edited, it's clear you put a lot of effort into them.

Bloomberg The Open
11/09/2023