XPO's Jacobs Talks Logistics, Economics and Geopolitics
Oct 4, 2023
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Brad Jacobs, Chairman at XPO, discusses logistics, economy, and his forthcoming book. Rose Stuckey Kirk talks about technology helping underrepresented people. Brett Pulley shares details of Tyler Perry's media empire. Topics include reducing carbon emissions, social responsibility initiatives, automation in warehouses, and fiscal stimulus.
Market volatility is driven by emotions and caution is advised due to potential fragility and uncertainty.
A soft landing for the economy is still possible with strong fiscal stimulus and positive growth indicators, but consumer behavior and economic data need to be closely watched.
Continued market volatility is expected through the end of the year due to fiscal stimulus, data releases, geopolitical events, and potential policy changes.
Deep dives
The equity and bond markets are oversold
According to Carol Schleif, CIO at BMO Family Office, both the equity and fixed income markets are oversold. She notes that recent market volatility has pushed prices to extreme levels, with emotions driving the markets to the edges. While there are underlying strengths, such as fiscal stimulus and positive growth in small and midsize companies, caution is advised due to potential fragility and uncertainty in the market.
Potential soft landing for the economy
Schleif suggests that a soft landing for the economy is still possible, despite the fragility in the market. Factors such as strong fiscal stimulus, ongoing hiring by mid and small size companies, and the upcoming holiday selling season indicate potential stability. However, the consumer's behavior and economic data, including earning reports, need to be closely watched in the coming weeks to gain a clearer understanding of the situation.
Volatility expected through year-end
Schleif forecasts continued volatility in the market through the end of the year. Factors such as ongoing fiscal stimulus, data releases, and geopolitical events will contribute to market swings. The potential impacts of government policies, including infrastructure plans and employment levels, will also play a role in market behavior. Schlief advises maintaining a balanced approach to risk, carefully watching data trends, and considering the potential for policy changes and market reactions.
Tech stocks continue to lead the market
Despite recent market volatility, tech stocks, specifically the NASDAQ, have been performing well. Large tech companies like Google, Amazon, and Microsoft have seen gains, showcasing the ongoing strength and potential of the technology sector. Artificial intelligence and other tech-driven industries are expected to continue experiencing growth and driving market performance.
Balanced approach recommended for investors
Schleif advises investors to maintain a balanced approach in their portfolios. While there is potential for market gains, caution is necessary due to market fragility and the uncertain impact of factors such as fiscal stimulus, data releases, and government policies. Diversification, holding some cash, and considering shorter-term treasury investments are recommended to weather potential market swings.
Brad Jacobs, Chairman at XPO, discusses the business of logistics and the economy as well as his forthcoming book How to Make a Few Billion Dollars, Bloomberg News Rates Reporter Michael McKenzie also joins the conversation. Rose Stuckey Kirk, Chief Corporate Social Responsibility Officer at Verizon, talks about how technology can help underrepresented people. Bloomberg News Atlanta Bureau Chief Brett Pulley shares the details of his Bloomberg Businessweek cover story Hollywood Ignored Tyler Perry, So He Built His Own Media Empire. And we Drive to the Close with Carol Schleif, CIO at BMO Family Office. Hosts: Carol Massar and Molly Smith. Producer: Paul Brennan.