Topics discussed in the podcast include NYCB's equity investment, State of the Union preview, market insights, real estate challenges, banking sector influence, communication strategies, undervalued energy investments, rising crime in NYC subway, celestial burials, men's skincare, and The Rock's tattoo care products.
Real estate changes impact banking with fluctuating urban values and mortgage data analysis for risk identification.
Diversifying investments beyond tech stocks, exploring mid/small-caps, and managing exposures offer benefits in changing markets.
Deep dives
Risks in the American Banking System
Changes in real estate usage and politics, like rent control legislations, have impacted the banking industry with potential risks. The valuation of urban real estate has fluctuated, affecting banks' portfolios with depreciating asset values. Identifying potential landmines requires analyzing mortgage participation data to understand the systemic risk in different institutions.
Opportunities in Mid and Small Cap Markets
As the Federal Reserve considers cutting interest rates, exploring performance opportunities outside of large-cap tech stocks is gaining traction. Shifting investments towards mid and small-cap stocks could yield benefits. Actively managing portfolio exposures to balance the impact of heavily weighted megacap stocks presents opportunities for diversification.
Fixed Income Prospects and High Yield Assets
Despite concerns about a recession, high-yield fixed income assets have shown strong performance, even outperforming other fixed income areas. The fixed income market offers attractive yields across various sub-asset classes. While high-yield spreads are low, opportunities exist in undervalued fixed income sectors.
Energy Sector Investment Potential
The energy sector presents compelling investment options with valuations at half their 10-year P.E. levels. Despite being overlooked, energy stocks offer long-term growth prospects. The supportive environment, with potential Fed rate cuts, could make energy investments more attractive in the current market landscape.
Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Surveillance hosted by Tom Keene and Paul SweeneyMarch 7th, 2024 Featuring:
Chris Whalen, Chairman at Whalen Global Advisors, on New York Community Bank
Wendy Schiller, Brown University Professor, on State of the Union preview
Kara Murphy, CIO at Kestra Investment Management, on markets
Bloomberg's Lisa Mateo with her Newspaper Headlines