What Goes Up

Climate change is arguably the biggest problem facing mankind in the 21st century, and any serious effort to slow it will require further massive investments in clean energy. At investment firm GMO, portfolio manager Lucas White leads a strategy that invests in companies which stand to benefit from the transition to green energy. It not only makes sound environmental sense, White says, but it also makes economic sense.Mentioned in this podcast:Thinking Outside the Box: How and Why to Invest in a Climate Change StrategySee omnystudio.com/listener for privacy information.

As 2020 approaches, the financial industry is busy issuing global outlooks for the new year. Recession? Trade deal? Higher or lower bond yields? Wilmington Trust Corp. threw another major risk into the mix: the continued rise of populism. Luke Tilley, chief economist at Wilmington and a former adviser with the Federal Reserve Bank of Philadelphia, weighs in. Also joining the show is Bloomberg’s Katherine Greifeld, who discusses the recent drop in bond yields and what’s arguably the most-boring foreign-exchange market since 1976.Mentioned in this podcast: Currency Doldrums Spur Complacency Risk That Could ‘Destroy Profits’Bond Market’s Fate Hangs in Balance Before Trade-War Crunch TimeSee omnystudio.com/listener for privacy information.

As U.S. benchmark stock indexes keep hitting new highs, at least one Wall Street strategist is on alert for a potential pullback by year’s end. Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, explains why she’s sticking with a year-end target of 2,950 for the S&P 500, about 5% below where it’s currently trading. Also joining the podcast is Bloomberg’s Ye Xie, who discusses the U.S. trade war with China and democracy protests in Hong Kong from the perspective of a global markets reporter.  Mentioned in this podcast:FOMO Grows as Investors Scurry to Catch Stock Market BoomU.S. Senate Readies Quick Vote on Trade Status: Hong Kong UpdatePatek Philippe Watch Sells for $31 Million in Record AuctionSee omnystudio.com/listener for privacy information.

The bond market has taken a major U-turn in recent weeks, causing the ever-important 10-year Treasury yield to jump from a three-year low of less than 1.43% in September to almost 2% on Thursday. Is this a turning point for fixed income or just a correction in an overbought Treasuries market? Robert Tipp, chief investment strategist at PGIM Fixed Income, shares his thoughts. Bloomberg Executive Editor Chris Nagi also explains what the rise in yields means for a U.S. stock market that touched record highs this week.  Mentioned in this podcast:Career Risk Flashing in Fund Land as Only 29% Beat BenchmarksU.S. Rates: Low for Long, But Likely PositiveRobinhood Traders Discovered a Glitch That Gave Them ‘Infinite Leverage’​​​​​​​Correction: This post incorrectly identified Robert Tipp’s title. The post has been updated.See omnystudio.com/listener for privacy information.

Negative interest rates! They’re all the rage in Europe, but could this trend come to the U.S. financial system in the foreseeable future? Lauren Goodwin, an economist and multi-asset portfolio strategist at New York Life Investment Management, explains how it could happen. Also joining the podcast is Bloomberg Opinion columnist Shira Ovide, who discusses the latest earnings reports from big tech and communications companies.Mentioned in this podcast:Another rate cut—Is the U.S. economy weakening?First Obama, Then Trump, Now They Say Warren Will Crush StocksAlphabet Is a Money-Making Mystery But It WorksThe 1963 Schwinn CatalogSee omnystudio.com/listener for privacy information.

Bloomberg's Travel Genius podcast is back! After clocking another hundred-thousand miles in the sky, hosts Nikki Ekstein and Mark Ellwood have a whole new series of flight hacking, restaurant sleuthing, and hotel booking tips to inspire your own getaways—along with a who's who roster of itinerant pros ready to spill their own travel secrets. From a special episode on Disney to a master class on packing, we'll go high, low, east, west, and everywhere in between. The new season starts Nov. 6.See omnystudio.com/listener for privacy information.

If it can happen in Chile, it can happen anywhere. That’s what Bloomberg Opinion columnist John Authers wrote this week as demonstrations broke out across the South American nation, long considered one of Latin America’s most-stable democracies. He joins this week to discuss the consequences for markets and societies with similar economic systems. Also joining the podcast is Bloomberg reporter Molly Smith, who gives her take on the current state of credit markets.Mentioned in this podcast:Chile's Violence Has a Worrisome Message for the World Authers' Newsletter: When Pensions Fail, People Get AngrySee omnystudio.com/listener for privacy information.

The buzz on Wall Street this week was about the latest earnings reports from the big banks, and a Vanity Fair report on suspicious “Trump Chaos” trades in the futures market. Meanwhile, a small nation in the Caribbean still claims bragging rights as one of the world’s hottest stock markets. Breaking it all down this week are Bloomberg’s Felice Maranz and Chris Nagi. And the podcast welcomes a special guest, Jamaican commerce minister Audley Shaw, who explains how sky-high interest rates decades ago helped fuel growth in the nation’s junior stock market.Mentioned in this podcast: Credit Cards Are a ‘Bright Spot’ in Bank Earnings, Analysts Say ‘There Is Definite Hanky-Panky Going On:’ The Fantastically Profitable Mystery of the Trump Chaos Trades Welcome to Jamaica, Home of the World’s Best-Performing Stock Market Analysts Have a Few Problems With Trump ‘Chaos Trades’ ArticleSee omnystudio.com/listener for privacy information.

Federal Reserve Chairman Jerome Powell this week insisted that a plan to buy Treasury bills to build up excess bank reserves wasn’t the same thing as the central bank’s previous asset purchases, known as quantitative easing, or QE for short. Markets, however, reacted similarly to how they behaved during QE, with risky assets like stocks rallying and the Treasury yield curve steepening. Medley Global Advisors Macro Strategist Ben Emons and Bloomberg reporter Luke Kawa discuss the significance of the Fed’s latest move.Mentioned in this podcast:A Repeat of 2018’s Rout Is Likely Coming, Veteran Investor SaysNonsense Market Moves Have Investors ‘Exhausted’ by Trade TalksSee omnystudio.com/listener for privacy information.

Officials from China are heading to Washington for trade talks next week, just as President Donald Trump battles the House of Representatives over impeachment hearings. How should investors prepare for the collision of these two stories? Kristina Hooper, chief global strategist at Invesco, joins the latest episode of the “What Goes Up” podcast to discuss. "What the impeachment threat does is it creates fatter tails -- it increases the likelihood of extreme outcomes," says Hooper. "Whether it is greater likelihood that the U.S. takes minor concessions from China and calls it a deal. Or we could see something moving in the opposite direction where the U.S. takes a very extreme, aggressive position with China."  Hooper also discusses why she recommends investors should take a look at emerging market debt. Also joining the podcast is Bloomberg Businessweek economics editor Peter Coy to break down the latest indicators and discuss his “Wealth Number” gauge of an individual’s net worth. See omnystudio.com/listener for privacy information.