Supply Shocks Hit Your Wallet, Investor & Consumer Sentiments Diverge, Expensive Suburbs

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Bloomberg Money.

Tom Keene (0:12)

This is the Bloomberg Money podcast. I'm Tom Keene with Scarlet Fu.

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Good noon, everyone. Bloomberg Money, Personal Finance, Retirement, Wealth Management, Touch of Politics, 25 Days to the Midterm Elections. I'm Tom Keene. Of course, Scarlet Food leading the challenge here. And the thing, everything is overwhelmed on personal finance, retirement and wealth management by consumer sentiment. That 44 statistic this morning speaks volumes about the tension in America.

Scarlet Fu (1:17)

People feel very lousy because no one likes high oil prices. No one likes high mortgage rates. And now people can do something about it when they go to the polls.

Tom Keene (1:25)

And would you agree that when we're doing this every day and we're doing this every Friday at 12 noon, we're trying to move away from the elite discussion that we do every day on Bloomberg? Because more than half of America, with that statistic, are 44th, flat on their back.

Scarlet Fu (1:39)

Yes, but then you look at GDP numbers, which is an aggregate number. And it looks like everything's just fine. Corporate earnings, which are going to begin in earnest next week, also just fine. Actually, more than fine.

Tom Keene (1:48)

Well, the mix here in October, in a beautiful October it is in New York City. Again, we welcome all of you with important conversation. Peter Orszag will join us today.

Of Lazard, of course, but his definitive work on American retirement over the arc of his career. Thrilled to have Dr. Orszag with us.

Scarlet Fu (2:07)

And later on in the hour, Anastasia Amoroso, Chief Investment Strategist for Partner Groups, Private Wealth and Retirement Business Unit will be sitting down with us. We'll get her view on how the great bond sell-off resets the table for valuations in stocks.

Tom Keene (2:19)

And she has been wonderful about the courage to stay in the market as well. Right now, I got to stay in the market. I went to wait. I was in all cash to the whole.

I haven't bought a first share yet. Triple leverage, all cash runs doing well this week. I don't care about stocks. Some do. What's important here is the bull market statistic for Anastasia. 14.92 on a VIX is a wow statistic.

Scarlet Fu (2:42)

Yeah, we're looking at a fourth straight year of double digit gains right now and also gains for the week in equities.

Let's flip it up and show you what's happening with yields. The 10 year yield moving up. That's been a familiar sight. It touched a new multi-decade high of 5.36 percent on Wednesday. Dollar up slightly and oil prices for WTI just below $92 a barrel.

Tom Keene (3:02)

A roundtable this morning to get started with good conversation. The Zeitgeist of a Friday. It's already been scarred because Gura inflicted upon us children photographs of flag football. We'll survive. David Gura is with us from Bloomberg this weekend and really on top of the midterm debate as well with us, Jessica Karl, author of Bloomberg Opinion today. It's a huge summation of all that we're doing with Tim O'Brien's shop at Bloomberg Opinion. And Max Jeffkins with us with Everybody's Business podcast. And I know, Scarlett, you really wound up about a Max story.

Scarlet Fu (3:35)

Yeah, absolutely. He's written about what's something called AI surveillance pricing, which is like dynamic pricing, but personalized based on who you are and what you've done before. Is that right? Yeah.

Max Chafkin (3:45)

This is the idea that as pricing algorithms get more and more sophisticated, we already have this to some extent with social media advertising, where you have a pair of shoes that follows you around the Internet. There are groups, many of them left leaning, many of them trying to get populist rage going, warning about the potential for these same kinds of technologies to apply to things like at grocery stores. So the idea, and this again is mostly theoretical at this point, but that you're walking through a grocery store and the price of a good will change based on other stuff you have in your shopping cart.

So for instance, and this came up in the story I just wrote, Walmart has a patent that suggests that they would change the price of mayonnaise if you already had tuna fish in their cart. Now I should say, Walmart responded to this by saying, we are not changing the price of mayonnaise yet, this is just a patent, we're not doing this, they're committed to the slogan, which is everyday low prices, but it does show you that there are at least some people within these companies that are thinking about this stuff, and we are seeing this in maybe less high-profile examples.