Bloomberg Money: The Opportunity Cost of Cautious Investing

**Scarlet Fu** (0:02)
Bloomberg Audio Studios. Podcasts, radio, news.

**Eric Baltunis** (0:07)
Bloomberg Money.

**Tom Keane** (0:12)
This is the Bloomberg Money podcast. I'm Tom Keen with Scarlet Fu. Join us each week for a smart look at the forces shaping your financial life on personal finance, on retirement, and wealth management. We will explore how people are earning, investing, and building wealth. We are live Fridays at noon Eastern on Bloomberg Television. Subscribe to the podcast wherever you listen, and as always on the Bloomberg Terminal and the Bloomberg Business App.
What I want to talk about is the unspoken. Everything is down in the market. Apple like a rock on the edge of a $5 trillion company. His personal finance by Apple 20 years ago and just hold it.

**Scarlet Fu** (0:54)
Well, for some people, but increasingly Americans are having a hard time saving for retirement because of rising living costs. They're not putting money into their retirement accounts because they have to pay for the kitty litter.

**Tom Keane** (1:03)
They got to pay for the kitty litter. They got to pay for school and all that. We'll talk about some of those things today. I think what's fascinating here is Mark Gurman with that story a few days ago on rebuilding the iPad and it's these buy and hold companies. That's what makes a winning retirement.

**Scarlet Fu** (1:18)
That's what makes a real winning retirement. We're going to get to all that and whether there's room for bonds in that portfolio.

**Tom Keane** (1:24)
Bonds is a big thing. We're going to do that here.
We're going to do that in a bit here. We have a wonderful guest for you today. Nouriel Roubini, not the Nouriel Roubini you think you know. Yes, senior economic strategist Hudson Bay Capital. But Nouriel Roubini when he was with Clinton, when he was trying to figure out the future of social security. We'll talk to Professor Roubini about his crisis that he sees.

**Scarlet Fu** (1:47)
The softer side of Nouriel Roubini. We've also got Amanda Lynam, Chief Credit Strategist at Goldman Sachs. Fancy title, but we're going to keep our topic of conversation very basic. The failure of bonds to produce much in the way of total returns in the last five years.

**Tom Keane** (1:59)
They bounced back to be fair. It was like a 560

**Scarlet Fu** (2:02)
But 2022 is scarred in our brains.

**Tom Keane** (2:04)
It scarred everyone. They had a great moderation for years and then up we went. Let's do this. Let's do a data check right now. It's on the stock market and it's not so pretty. Apple, as I said, like a rock, is really holding on well. You wouldn't know it anywhere else, but it is better from when Scar came in the door today at 9:55 AM. NASDAQ down 1%.
It was down 2% or more. In futures, we are to a VIX of 19 and we do better now. The tape much better in the last two hours.

**Scarlet Fu** (2:33)
It certainly is. All right. Let's take a look at what's going on in cross asset. You have the 10-year yield not doing much of anything, basically at 4.5% after this week's inflation prints showed that price pressures are easing. The dollar also not doing a whole lot, but the story for this year is a stronger dollar because the US economy remains resilient. But the big story is in oil. The bottom of oil price is coincided with the end of the first half, and since the start of the second half, Brent, which you see there, has gone from the low 70s to as high as the mid 80s.

**Tom Keane** (3:00)
A little bit of news flow as well, and what will be the news over the weekend as well?

**Scarlet Fu** (3:05)
It's kind of an unanswerable question.

**Tom Keane** (3:06)
It's an unanswerable question right now. I would say, good insight, Vanessa.

**Scarlet Fu** (3:09)
You okay over there?

**Tom Keane** (3:11)
Okay, here's the reality, folks. Michael Ball, Eric Beltunis, the Fu in me, we're only here because Vanessa Perdomo has World Cup tickets to give us, right?

**Vanessa Perdomo** (3:22)
I don't think so. I think that would be quite a price tag for everyone.

**Tom Keane** (3:26)
It's up to $7,000, I saw it in that life, and that was a few days ago. We've got a great set of people with us. Eric Beltunis holds a high ground on exchange traded funds. Vanessa Perdomo drives so much of our sports coverage as well. And Michael Ball is with us as well. He's always like nerdo fed stuff, and we're gonna talk to him some of the basic responsibilities maybe the new chairman has. Eric, thank you so much for joining today. You stopped traffic this week by saying our retirement system is now the stock market, discuss.