RUSH TRANSCRIPT Please stand ░░░░░░░░ What a different day ░░░░░░░░ makes We start to ░░░░░░░░ on what the central ░░░░░░░░ might look like 2 ░░░░░░░░ up on the small ░░░░░░░░ caps The vix elevated ░░░░░░░░ as we look at ░░░░░░░░ and the reactions on ░░░░░░░░ other we see crude ░░░░░░░░ to push higher 8 ░░░░░░░░ on crude You see ░░░░░░░░ bloomberg commodity index at ░░░░░░░░ highs She was also ░░░░░░░░ manager for the etf ░░░░░░░░ March toward the market ░░░░░░░░ and talk a lot ░░░░░░░░ volatility in the market ░░░░░░░░ do you see with ░░░░░░░░ to experience I think ░░░░░░░░ works on both sides ░░░░░░░░ and down It is ░░░░░░░░ very opportune time to ░░░░░░░░ about non correlated assets ░░░░░░░░ volatility as helped and ░░░░░░░░ is lots of different ░░░░░░░░ of volatility Whether it ░░░░░░░░ the oil gold rates ░░░░░░░░ equities anything with the ░░░░░░░░ market has a bond ░░░░░░░░ Options are a kleenex ░░░░░░░░ the tissue It is ░░░░░░░░ same thing Romaine I ░░░░░░░░ curious about whether they ░░░░░░░░ view what is happening ░░░░░░░░ as good for lack ░░░░░░░░ a better phrase Obviously ░░░░░░░░ feel my heart goes ░░░░░░░░ to those in Ukraine ░░░░░░░░ the fight for freedom ░░░░░░░░ safety I don t ░░░░░░░░ it is good ball ░░░░░░░░ is a reminder that ░░░░░░░░ anyone is worried about ░░░░░░░░ happening in the fut ░░░░░░░░ it is something unexpected ░░░░░░░░ surprises the market like ░░░░░░░░ environment or inflation expectations ░░░░░░░░ things out of p ░░░░░░░░ s control You cannot ░░░░░░░░ time window voltailty especially ░░░░░░░░ The fixed income side ░░░░░░░░ is something you should ░░░░░░░░ as part of a ░░░░░░░░ asset allocation Taylor do ░░░░░░░░ feel nervous when you ░░░░░░░░ big types of rallies ░░░░░░░░ with a 30 handle ░░░░░░░░ does that signal with ░░░░░░░░ Nancy this is uncharted ░░░░░░░░ We have had quantitative ░░░░░░░░ and right now the ░░░░░░░░ is tapering Today they ░░░░░░░░ still buying bonds We ░░░░░░░░ not experienced the injection ░░░░░░░░ alone balance sheet reduction ░░░░░░░░ off It is good ░░░░░░░░ investors to be prepared ░░░░░░░░ more volatility especially in ░░░░░░░░ bond market because we ░░░░░░░░ never had this before ░░░░░░░░ it appears to be ░░░░░░░░ that an Romaine we ░░░░░░░░ in conversation with Nancy ░░░░░░░░ founder of quadratic capital ░░░░░░░░ We look at the ░░░░░░░░ markets 18 basis points ░░░░░░░░ on the pie 1 ░░░░░░░░ to one the two ░░░░░░░░ yield Caroline whiplash kind ░░░░░░░░ day once again We ░░░░░░░░ you to the closing ░░░░░░░░ 15 minutes to close ░░░░░░░░ is bloomberg Caroline this ░░░░░░░░ count onto the close ░░░░░░░░ guys are making finance ░░░░░░░░ again Meanwhile let s ░░░░░░░░ at finance stuff are ░░░░░░░░ Let s look at ░░░░░░░░ happened with what we ░░░░░░░░ experiencing in the market ░░░░░░░░ are actually higher after ░░░░░░░░ ice with Ukraine and ░░░░░░░░ the board stocks are ░░░░░░░░ Caroline still well off ░░░░░░░░ highs of where we ░░░░░░░░ a couple of months ░░░░░░░░ hereby you did see ░░░░░░░░ is broad based more ░░░░░░░░ 90 of the S ░░░░░░░░ higher on the day ░░░░░░░░ stops stocks backup 4 ░░░░░░░░ and energy having a ░░░░░░░░ day Actually seeing a ░░░░░░░░ decent rally and a ░░░░░░░░ of those names have ░░░░░░░░ lot of people been ░░░░░░░░ the idea that consumer ░░░░░░░░ Taylor Nancy Davis founder ░░░░░░░░ cio of quadratic capital ░░░░░░░░ still with us We ░░░░░░░░ earlier about talking about ░░░░░░░░ so let s go ░░░░░░░░ We got the sense ░░░░░░░░ the Federal Reserve is ░░░░░░░░ with rate hikes They ░░░░░░░░ really serious about attacking ░░░░░░░░ despite maybe an economic ░░░░░░░░ we could get given ░░░░░░░░ events Taylor it is ░░░░░░░░ a push to your ░░░░░░░░ We have geopolitical events ░░░░░░░░ domestic inflation We do ░░░░░░░░ inflation in terms of ░░░░░░░░ a question of whether ░░░░░░░░ hikes will matter and ░░░░░░░░ that is enough to ░░░░░░░░ the inflation we are ░░░░░░░░ in everyday life Caroline ░░░░░░░░ What do you make ░░░░░░░░ it Nancy stocks and ░░░░░░░░ are down year to ░░░░░░░░ Powell has kind of ░░░░░░░░ the fears that we ░░░░░░░░ having a plastic equity ░░░░░░░░ day If you look ░░░░░░░░ to date stocks and ░░░░░░░░ are falling altogether That ░░░░░░░░ stagflation so it is ░░░░░░░░ to say Romaine now ░░░░░░░░ is concern that people ░░░░░░░░ going to head to ░░░░░░░░ tightening cycle of some ░░░░░░░░ or another with oil ░░░░░░░░ at levels we have ░░░░░░░░ seen in years and ░░░░░░░░ commodity prices for sale ░░░░░░░░ the growth doesn t ░░░░░░░░ up and we find ░░░░░░░░ in a stagflation something ░░░░░░░░ will talk about how ░░░░░░░░ this change investment Nancy ░░░░░░░░ need to rethink the ░░░░░░░░ 40 portfolio and have ░░░░░░░░ rest of buying assets ░░░░░░░░ in the portfolio It ░░░░░░░░ not where the stock ░░░░░░░░ are It is about ░░░░░░░░ the borrowed kurds are ░░░░░░░░ oil markets the vix ░░░░░░░░ the rate market all ░░░░░░░░ markets mean the stock ░░░░░░░░ rices are higher than ░░░░░░░░ future prices That low ░░░░░░░░ environment is being priced ░░░░░░░░ markets and it is ░░░░░░░░ opportune time to take ░░░░░░░░ of what is expected ░░░░░░░░ the future not today ░░░░░░░░ has been very successful ░░░░░░░░ is convinced the rates ░░░░░░░░ they will be hiking ░░░░░░░░ is priced in romaine ░░░░░░░░ can see that reflected ░░░░░░░░ the price action today ░░░░░░░░ the yield up 16 ░░░░░░░░ points the biggest move ░░░░░░░░ on the 10 year ░░░░░░░░ back to the pandemic ░░░░░░░░ March 2020 In conversation ░░░░░░░░ Nancy Davis at quadratic ░░░░░░░░ management she is sticking ░░░░░░░░ us as we count ░░░░░░░░ down to the closing ░░░░░░░░ six minutes away We ░░░░░░░░ get back to Nancy ░░░░░░░░ a moment Taylor we ░░░░░░░░ a lot about yields ░░░░░░░░ today candidates bringing back ░░░░░░░░ focus the gr owthiest ░░░░░░░░ the revaluation we have ░░░░░░░░ on A day like ░░░░░░░░ The stock is up ░░░░░░░░ 2 we will get ░░░░░░░░ results the quarterly results ░░░░░░░░ the bell 373 million ░░░░░░░░ for share with a ░░░░░░░░ of three cents but ░░░░░░░░ has been a big ░░░░░░░░ with the stocks that ░░░░░░░░ up to 400 from ░░░░░░░░ and hovers down to ░░░░░░░░ How do we think ░░░░░░░░ the growthiest companies when ░░░░░░░░ thing about a rising ░░░░░░░░ environment Let me bring ░░░░░░░░ back here The rate ░░░░░░░░ comes back to where ░░░░░░░░ started The inflationary environment ░░░░░░░░ think what caught my ░░░░░░░░ is when you have ░░░░░░░░ two year breakeven that ░░░░░░░░ record highs You re ░░░░░░░░ getting anchoring 30 year ░░░░░░░░ break out on the ░░░░░░░░ Confident you can keep ░░░░░░░░ term inflation anchored despite ░░░░░░░░ records we are seeing ░░░░░░░░ to your breakevens Nancy ░░░░░░░░ to your point the ░░░░░░░░ market is pricing in ░░░░░░░░ environments even one one ░░░░░░░░ breakevens significantly lower where ░░░░░░░░ have had CPI up ░░░░░░░░ 2 above 6 2 ░░░░░░░░ 7 and the curve ░░░░░░░░ downward sloping the further ░░░░░░░░ you go The rates ░░░░░░░░ is pricing in inflation ░░░░░░░░ the transitory thing It ░░░░░░░░ abate over time The ░░░░░░░░ for investors is not ░░░░░░░░ you think will happen ░░░░░░░░ s more looking was ░░░░░░░░ in In every market ░░░░░░░░ is about buying low ░░░░░░░░ selling high Long term ░░░░░░░░ expectations are not high ░░░░░░░░ market believes the Fed ░░░░░░░░ stop this inflationary burden ░░░░░░░░ the rate hikes Caroline ░░░░░░░░ we continue to have ░░░░░░░░ narrative about Janet Yellen ░░░░░░░░ about whether there will ░░░░░░░░ on the U S ░░░░░░░░ from the war on ░░░░░░░░ in Ukraine They don ░░░░░░░░ expect a major impact ░░░░░░░░ far To circle back ░░░░░░░░ volatility and something you ░░░░░░░░ so focused on with ░░░░░░░░ having hedging are people ░░░░░░░░ changing their response to ░░░░░░░░ has happened the last ░░░░░░░░ of days Nancy our ░░░░░░░░ have been ringing off ░░░░░░░░ hook with the hydrology ░░░░░░░░ The administration it is ░░░░░░░░ because it is the ░░░░░░░░ of the world and ░░░░░░░░ see a spike in ░░░░░░░░ prices because of Russia ░░░░░░░░ exports It is a ░░░░░░░░ but experts are looking ░░░░░░░░ long volatility as well ░░░░░░░░ potential inflation exposure during ░░░░░░░░ uncertain times We do ░░░░░░░░ thing to pick up ░░░░░░░░ investor interest It s ░░░░░░░░ not an expensive time ░░░░░░░░ inflation expectations because the ░░░░░░░░ does not really have ░░░░░░░░ priced in It is ░░░░░░░░ that will stick around ░░░░░░░░ it is great to ░░░░░░░░ up with you Founder ░░░░░░░░ cio of quadratic capital ░░░░░░░░ Phones ringing off the ░░░░░░░░ We have had a ░░░░░░░░ that has completely reversed ░░░░░░░░ Romaine it is interesting ░░░░░░░░ see as we get ░░░░░░░░ key data on Friday ░░░░░░░░ the jobs report inflations ░░░░░░░░ next week and then ░░░░░░░░ Fed meeting in two ░░░░░░░░ Taylor the two year ░░░░░░░░ are unbelievable 4 3 ░░░░░░░░ have never seen that ░░░░░░░░ Romaine with regards to ░░░░░░░░ the treasury market is ░░░░░░░░ back to where it ░░░░░░░░ We are moving close ░░░░░░░░ the closing bell We ░░░░░░░░ our eyes on the ░░░░░░░░ market Full market coverage ░░░░░░░░ always as we take ░░░░░░░░ to the bell and ░░░░░░░░ Announcer beyond the bell ░░░░░░░░ s comprehensive cross platform ░░░░░░░░ of the U S ░░░░░░░░ close starts right now ░░░░░░░░ we are two minutes ░░░░░░░░ from the end of ░░░░░░░░ trading day Romaine bostick ░░░░░░░░ hyde Taylor riggs counting ░░░░░░░░ down to the closing ░░░░░░░░ It is our global ░░░░░░░░ Tim throne s make ░░░░░░░░ Stenovec RUSH TRANSCRIPT Please ░░░░░░░░ by What a different ░░░░░░░░ it makes We start ░░░░░░░░ refocus on what the ░░░░░░░░ bank might look like ░░░░░░░░ 8 up on the ░░░░░░░░ packs caps The vix ░░░░░░░░ but as we look ░░░░░░░░ geopolitics and the reactions ░░░░░░░░ the other we see ░░░░░░░░ continuing to push higher ░░░░░░░░ 2 on crude You ░░░░░░░░ the bloomberg commodity index ░░░░░░░░ noon highs She was ░░░░░░░░ portfolio manager for the ░░░░░░░░ We March toward the ░░░░░░░░ close and talk a ░░░░░░░░ about volatility in the ░░░░░░░░ What do you see ░░░░░░░░ continuing to experience I ░░░░░░░░ it works on both ░░░░░░░░ up and down It ░░░░░░░░ a very opportune time ░░░░░░░░ think about non correlated ░░░░░░░░ Historically volatility as helped ░░░░░░░░ there is lots of ░░░░░░░░ types of volatility Whether ░░░░░░░░ is the oil gold ░░░░░░░░ market equities anything with ░░░░░░░░ options market has a ░░░░░░░░ market Options are a ░░░░░░░░ versus the tissue It ░░░░░░░░ the same thing Romaine ░░░░░░░░ am curious about whether ░░░░░░░░ you view what is ░░░░░░░░ now as good for ░░░░░░░░ of a better phrase ░░░░░░░░ I feel my heart ░░░░░░░░ out to those in ░░░░░░░░ and the fight for ░░░░░░░░ and safety I don ░░░░░░░░ think it is good ░░░░░░░░ It is a reminder ░░░░░░░░ whenever anyone is worried ░░░░░░░░ something happening in the ░░░░░░░░ ure it is something ░░░░░░░░ that surprises the market ░░░░░░░░ this environment or inflation ░░░░░░░░ or things out of ░░░░░░░░ oeple s control You ░░░░░░░░ really time window voltailty ░░░░░░░░ in The fixed income ░░░░░░░░ it is something you ░░░░░░░░ have as part of ░░░░░░░░ diversified asset allocation Taylor ░░░░░░░░ you feel nervous when ░░░░░░░░ get big types of ░░░░░░░░ maybe with a 30 ░░░░░░░░ What does that signal ░░░░░░░░ you Nancy this is ░░░░░░░░ territory We have had ░░░░░░░░ easing and right now ░░░░░░░░ Fed is tapering Today ░░░░░░░░ are still buying bonds ░░░░░░░░ have not experienced the ░░░░░░░░ let alone balance sheet ░░░░░░░░ rolling off It is ░░░░░░░░ for investors to be ░░░░░░░░ for more volatility especially ░░░░░░░░ the bond market because ░░░░░░░░ have never had this ░░░░░░░░ Caroline it appears to ░░░░░░░░ repricing that an Romaine ░░░░░░░░ are in conversation with ░░░░░░░░ Davis founder of quadratic ░░░░░░░░ management We look at ░░░░░░░░ equity markets 18 basis ░░░░░░░░ 17 on the pie ░░░░░░░░ 5 to one the ░░░░░░░░ year yield Caroline whiplash ░░░░░░░░ of day once again ░░░░░░░░ take you to the ░░░░░░░░ bell 15 minutes to ░░░░░░░░ This is bloomberg Caroline ░░░░░░░░ is count onto the ░░░░░░░░ You guys are making ░░░░░░░░ jokes again Meanwhile let ░░░░░░░░ look at finance stuff ░░░░░░░░ you Let s look ░░░░░░░░ what happened with what ░░░░░░░░ are experiencing in the ░░░░░░░░ We are actually higher ░░░░░░░░ the ice with Ukraine ░░░░░░░░ across the board stocks ░░░░░░░░ down Caroline still well ░░░░░░░░ the highs of where ░░░░░░░░ were a couple of ░░░░░░░░ ago hereby you did ░░░░░░░░ this is broad based ░░░░░░░░ than 90 of the ░░░░░░░░ P higher on the ░░░░░░░░ Bank stops stocks backup ░░░░░░░░ Transports and energy having ░░░░░░░░ good day Actually seeing ░░░░░░░░ pretty decent rally and ░░░░░░░░ lot of those names ░░░░░░░░ a lot of people ░░░░░░░░ on the idea that ░░░░░░░░ spending Taylor Nancy Davis ░░░░░░░░ and cio of quadratic ░░░░░░░░ management still with us ░░░░░░░░ hinted earlier about talking ░░░░░░░░ bonds so let s ░░░░░░░░ there We got the ░░░░░░░░ that the Federal Reserve ░░░░░░░░ continuing with rate hikes ░░░░░░░░ are really serious about ░░░░░░░░ inflation despite maybe an ░░░░░░░░ slowdown we could get ░░░░░░░░ geopolitical events Taylor it ░░░░░░░░ definitely a push to ░░░░░░░░ point We have geopolitical ░░░░░░░░ and domestic inflation We ░░░░░░░░ have inflation in terms ░░░░░░░░ realizing a question of ░░░░░░░░ rate hikes will matter ░░░░░░░░ whether that is enough ░░░░░░░░ stop the inflation we ░░░░░░░░ seeing in everyday life ░░░░░░░░ stagflation What do you ░░░░░░░░ of it Nancy stocks ░░░░░░░░ bonds are down year ░░░░░░░░ date Powell has kind ░░░░░░░░ squashed the fears that ░░░░░░░░ are having a plastic ░░░░░░░░ down day If you ░░░░░░░░ year to date stocks ░░░░░░░░ bonds are falling altogether ░░░░░░░░ s stagflation so it ░░░░░░░░ hard to say Romaine ░░░░░░░░ there is concern that ░░░░░░░░ are going to head ░░░░░░░░ a tightening cycle of ░░░░░░░░ degree or another with ░░░░░░░░ prices at levels we ░░░░░░░░ not seen in years ░░░░░░░░ other commodity prices for ░░░░░░░░ If the growth doesn ░░░░░░░░ hold up and we ░░░░░░░░ yourself in a stagflation ░░░░░░░░ we will talk about ░░░░░░░░ does this change investment ░░░░░░░░ investors need to rethink ░░░░░░░░ 60 40 portfolio and ░░░░░░░░ the rest of buying ░░░░░░░░ included in the portfolio ░░░░░░░░ is not where the ░░░░░░░░ curves are It is ░░░░░░░░ where the borrowed kurds ░░░░░░░░ and oil markets the ░░░░░░░░ market the rate market ░░░░░░░░ these markets mean the ░░░░░░░░ p rices are higher ░░░░░░░░ the future prices That ░░░░░░░░ growth environment is being ░░░░░░░░ into markets and it ░░░░░░░░ an opportune time to ░░░░░░░░ advantage of what is ░░░░░░░░ in the future not ░░░░░░░░ Powell has been very ░░░░░░░░ and is convinced the ░░░░░░░░ market they will be ░░░░░░░░ It is priced in ░░░░░░░░ You can see that ░░░░░░░░ in the price action ░░░░░░░░ with the yield up ░░░░░░░░ basis points the biggest ░░░░░░░░ higher on the 10 ░░░░░░░░ going back to the ░░░░░░░░ in March 2020 In ░░░░░░░░ with Nancy Davis at ░░░░░░░░ capital management she is ░░░░░░░░ with us as we ░░░░░░░░ you down to the ░░░░░░░░ bell six minutes away ░░░░░░░░ will get back to ░░░░░░░░ in a moment Taylor ░░░░░░░░ talk a lot about ░░░░░░░░ higher today candidates bringing ░░░░░░░░ into focus the gr ░░░░░░░░ company the revaluation we ░░░░░░░░ seen on A day ░░░░░░░░ this The stock is ░░░░░░░░ 1 2 we will ░░░░░░░░ corporate results the quarterly ░░░░░░░░ after the bell 373 ░░░░░░░░ earnings for share with ░░░░░░░░ gain of three cents ░░░░░░░░ this has been a ░░░░░░░░ lesson with the stocks ░░░░░░░░ went up to 400 ░░░░░░░░ 120 and hovers down ░░░░░░░░ 266 How do we ░░░░░░░░ about the growthiest companies ░░░░░░░░ we thing about a ░░░░░░░░ rate environment Let me ░░░░░░░░ you back here The ░░░░░░░░ environment comes back to ░░░░░░░░ we started The inflationary ░░░░░░░░ I think what caught ░░░░░░░░ eye is when you ░░░░░░░░ a two year breakeven ░░░░░░░░ is record highs You ░░░░░░░░ still getting anchoring 30 ░░░░░░░░ inflation break out on ░░░░░░░░ horizon Confident you can ░░░░░░░░ long term inflation anchored ░░░░░░░░ the records we are ░░░░░░░░ in to your breakevens ░░░░░░░░ Taylor to your point ░░░░░░░░ breakeven market is pricing ░░░░░░░░ transitory environments even one ░░░░░░░░ your breakevens significantly lower ░░░░░░░░ we have had CPI ░░░░░░░░ 5 2 above 6 ░░░░░░░░ above 7 and the ░░░░░░░░ is downward sloping the ░░░░░░░░ out you go The ░░░░░░░░ market is pricing in ░░░░░░░░ in the transitory thing ░░░░░░░░ will abate over time ░░░░░░░░ opportunity for investors is ░░░░░░░░ what you think will ░░░░░░░░ It s more looking ░░░░░░░░ priced in In every ░░░░░░░░ it is about buying ░░░░░░░░ and selling high Long ░░░░░░░░ inflation expectations are not ░░░░░░░░ The market believes the ░░░░░░░░ will stop this inflationary ░░░░░░░░ with the rate hikes ░░░░░░░░ meanwhilee we continue to ░░░░░░░░ the narrative about Janet ░░░░░░░░ talking about whether there ░░░░░░░░ be on the U ░░░░░░░░ trajectory from the war ░░░░░░░░ Russia in Ukraine They ░░░░░░░░ t expect a major ░░░░░░░░ so far To circle ░░░░░░░░ to volatility and something ░░░░░░░░ are so focused on ░░░░░░░░ inflation having hedging are ░░░░░░░░ dramatically changing their response ░░░░░░░░ what has happened the ░░░░░░░░ couple of days Nancy ░░░░░░░░ phones have been ringing ░░░░░░░░ the hook with the ░░░░░░░░ etf The administration it ░░░░░░░░ unfortunate because it is ░░░░░░░░ breadbasket of the world ░░░░░░░░ you see a spike ░░░░░░░░ energy prices because of ░░░░░░░░ s exports It is ░░░░░░░░ concern but experts are ░░░░░░░░ for long volatility as ░░░░░░░░ as potential inflation exposure ░░░░░░░░ these uncertain times We ░░░░░░░░ our thing to pick ░░░░░░░░ the investor interest It ░░░░░░░░ definitely not an expensive ░░░░░░░░ for inflation expectations because ░░░░░░░░ market does not really ░░░░░░░░ those priced in It ░░░░░░░░ something that will stick ░░░░░░░░ Caroline it is great ░░░░░░░░ catch up with you ░░░░░░░░ in cio of quadratic ░░░░░░░░ management Phones ringing off ░░░░░░░░ hook We have had ░░░░░░░░ market that has completely ░░░░░░░░ yesterday Romaine it is ░░░░░░░░ to see as we ░░░░░░░░ some key data on ░░░░░░░░ with the jobs report ░░░░░░░░ report next week and ░░░░░░░░ the Fed meeting in ░░░░░░░░ weeks Taylor the two ░░░░░░░░ breakevens are unbelievable 4 ░░░░░░░░ we have never seen ░░░░░░░░ before Romaine with regards ░░░░░░░░ automobiles the treasury market ░░░░░░░░ not back to where ░░░░░░░░ was We are moving ░░░░░░░░ to the closing bell ░░░░░░░░ have our eyes on ░░░░░░░░ equity market Full market ░░░░░░░░ as always as we ░░░░░░░░ you to the bell ░░░░░░░░ beyond Announcer beyond the ░░░░░░░░ bloomberg s comprehensive cross ░░░░░░░░ coverage of the U ░░░░░░░░ market close starts right ░░░░░░░░ Romaine we are two ░░░░░░░░ away from the end ░░░░░░░░ the trading day Romaine ░░░░░░░░ Caroline hyde Taylor riggs ░░░░░░░░ you down to the ░░░░░░░░ bell It is our ░░░░░░░░ simulcast Tim throne s ░░░░░░░░ Tim Stenovec RUSH TRANSCRIPT ░░░░░░░░ stand by What a ░░░░░░░░ day it makes We ░░░░░░░░ to refocus on what ░░░░░░░░ central bank might look ░░░░░░░░ 2 8 up on ░░░░░░░░ small packs caps The ░░░░░░░░ elevated but as we ░░░░░░░░ at geopolitics and the ░░░░░░░░ on the other we ░░░░░░░░ crude continuing to push ░░░░░░░░ 8 2 on crude ░░░░░░░░ see the bloomberg commodity ░░░░░░░░ at noon highs She ░░░░░░░░ also portfolio manager for ░░░░░░░░ etf We March toward ░░░░░░░░ market close and talk ░░░░░░░░ lot about volatility in ░░░░░░░░ market What do you ░░░░░░░░ with continuing to experience ░░░░░░░░ think it works on ░░░░░░░░ sides up and down ░░░░░░░░ is a very opportune ░░░░░░░░ to think about non ░░░░░░░░ assets Historically volatility as ░░░░░░░░ and there is lots ░░░░░░░░ different types of volatility ░░░░░░░░ it is the oil ░░░░░░░░ rates market equities anything ░░░░░░░░ the options market has ░░░░░░░░ bond market Options are ░░░░░░░░ kleenex versus the tissue ░░░░░░░░ is the same thing ░░░░░░░░ I am curious about ░░░░░░░░ they you view what ░░░░░░░░ happening now as good ░░░░░░░░ lack of a better ░░░░░░░░ Obviously I feel my ░░░░░░░░ goes out to those ░░░░░░░░ Ukraine and the fight ░░░░░░░░ freedom and safety I ░░░░░░░░ t think it is ░░░░░░░░ ball It is a ░░░░░░░░ that whenever anyone is ░░░░░░░░ about something happening in ░░░░░░░░ fut ure it is ░░░░░░░░ unexpected that surprises the ░░░░░░░░ like this environment or ░░░░░░░░ expectations or things out ░░░░░░░░ p oeple s control ░░░░░░░░ cannot really time window ░░░░░░░░ especially in The fixed ░░░░░░░░ side it is something ░░░░░░░░ should have as part ░░░░░░░░ a diversified asset allocation ░░░░░░░░ do you feel nervous ░░░░░░░░ you get big types ░░░░░░░░ rallies maybe with a ░░░░░░░░ handle What does that ░░░░░░░░ with you Nancy this ░░░░░░░░ uncharted territory We have ░░░░░░░░ quantitative easing and right ░░░░░░░░ the Fed is tapering ░░░░░░░░ they are still buying ░░░░░░░░ We have not experienced ░░░░░░░░ injection let alone balance ░░░░░░░░ reduction rolling off It ░░░░░░░░ good for investors to ░░░░░░░░ prepared for more volatility ░░░░░░░░ in the bond market ░░░░░░░░ we have never had ░░░░░░░░ before Caroline it appears ░░░░░░░░ be repricing that an ░░░░░░░░ we are in conversation ░░░░░░░░ Nancy Davis founder of ░░░░░░░░ capital management We look ░░░░░░░░ the equity markets 18 ░░░░░░░░ points 17 on the ░░░░░░░░ 1 5 to one ░░░░░░░░ two year yield Caroline ░░░░░░░░ kind of day once ░░░░░░░░ We take you to ░░░░░░░░ closing bell 15 minutes ░░░░░░░░ close This is bloomberg ░░░░░░░░ this is count onto ░░░░░░░░ close You guys are ░░░░░░░░ finance jokes again Meanwhile ░░░░░░░░ s look at finance ░░░░░░░░ are you Let s ░░░░░░░░ at what happened with ░░░░░░░░ we are experiencing in ░░░░░░░░ market We are actually ░░░░░░░░ after the ice with ░░░░░░░░ and across the board ░░░░░░░░ are down Caroline still ░░░░░░░░ off the highs of ░░░░░░░░ we were a couple ░░░░░░░░ months ago hereby you ░░░░░░░░ see this is broad ░░░░░░░░ more than 90 of ░░░░░░░░ S P higher on ░░░░░░░░ day Bank stops stocks ░░░░░░░░ 4 Transports and energy ░░░░░░░░ a good day Actually ░░░░░░░░ a pretty decent rally ░░░░░░░░ a lot of those ░░░░░░░░ have a lot of ░░░░░░░░ been on the idea ░░░░░░░░ consumer spending Taylor Nancy ░░░░░░░░ founder and cio of ░░░░░░░░ capital management still with ░░░░░░░░ We hinted earlier about ░░░░░░░░ about bonds so let ░░░░░░░░ go there We got ░░░░░░░░ sense that the Federal ░░░░░░░░ is continuing with rate ░░░░░░░░ They are really serious ░░░░░░░░ attacking inflation despite maybe ░░░░░░░░ economic slowdown we could ░░░░░░░░ given geopolitical events Taylor ░░░░░░░░ is definitely a push ░░░░░░░░ your point We have ░░░░░░░░ events and domestic inflation ░░░░░░░░ do have inflation in ░░░░░░░░ of realizing a question ░░░░░░░░ whether rate hikes will ░░░░░░░░ and whether that is ░░░░░░░░ to stop the inflation ░░░░░░░░ are seeing in everyday ░░░░░░░░ Caroline stagflation What do ░░░░░░░░ make of it Nancy ░░░░░░░░ and bonds are down ░░░░░░░░ to date Powell has ░░░░░░░░ of squashed the fears ░░░░░░░░ we are having a ░░░░░░░░ equity down day If ░░░░░░░░ look year to date ░░░░░░░░ and bonds are falling ░░░░░░░░ That s stagflation so ░░░░░░░░ is hard to say ░░░░░░░░ now there is concern ░░░░░░░░ people are going to ░░░░░░░░ to a tightening cycle ░░░░░░░░ some degree or another ░░░░░░░░ oil prices at levels ░░░░░░░░ have not seen in ░░░░░░░░ and other commodity prices ░░░░░░░░ sale If the growth ░░░░░░░░ t hold up and ░░░░░░░░ find yourself in a ░░░░░░░░ something we will talk ░░░░░░░░ how does this change ░░░░░░░░ Nancy investors need to ░░░░░░░░ the 60 40 portfolio ░░░░░░░░ have the rest of ░░░░░░░░ assets included in the ░░░░░░░░ It is not where ░░░░░░░░ stock curves are It ░░░░░░░░ about where the borrowed ░░░░░░░░ are and oil markets ░░░░░░░░ vix market the rate ░░░░░░░░ all these markets mean ░░░░░░░░ stock p rices are ░░░░░░░░ than the future prices ░░░░░░░░ low growth environment is ░░░░░░░░ priced into markets and ░░░░░░░░ is an opportune time ░░░░░░░░ take advantage of what ░░░░░░░░ expected in the future ░░░░░░░░ today Powell has been ░░░░░░░░ successful and is convinced ░░░░░░░░ rates market they will ░░░░░░░░ hiking It is priced ░░░░░░░░ romaine You can see ░░░░░░░░ reflected in the price ░░░░░░░░ today with the yield ░░░░░░░░ 16 basis points the ░░░░░░░░ move higher on the ░░░░░░░░ year going back to ░░░░░░░░ pandemic in March 2020 ░░░░░░░░ conversation with Nancy Davis ░░░░░░░░ quadratic capital management she ░░░░░░░░ sticking with us as ░░░░░░░░ count you down to ░░░░░░░░ closing bell six minutes ░░░░░░░░ We will get back ░░░░░░░░ Nancy in a moment ░░░░░░░░ we talk a lot ░░░░░░░░ yields higher today candidates ░░░░░░░░ back into focus the ░░░░░░░░ owthiest company the revaluation ░░░░░░░░ have seen on A ░░░░░░░░ like this The stock ░░░░░░░░ up 1 2 we ░░░░░░░░ get corporate results the ░░░░░░░░ results after the bell ░░░░░░░░ million earnings for share ░░░░░░░░ a gain of three ░░░░░░░░ but this has been ░░░░░░░░ big lesson with the ░░░░░░░░ that went up to ░░░░░░░░ from 120 and hovers ░░░░░░░░ to 266 How do ░░░░░░░░ think about the growthiest ░░░░░░░░ when we thing about ░░░░░░░░ rising rate environment Let ░░░░░░░░ bring you back here ░░░░░░░░ rate environment comes back ░░░░░░░░ where we started The ░░░░░░░░ environment I think what ░░░░░░░░ my eye is when ░░░░░░░░ have a two year ░░░░░░░░ that is record highs ░░░░░░░░ re still getting anchoring ░░░░░░░░ year inflation break out ░░░░░░░░ the horizon Confident you ░░░░░░░░ keep long term inflation ░░░░░░░░ despite the records we ░░░░░░░░ seeing in to your ░░░░░░░░ Nancy Taylor to your ░░░░░░░░ the breakeven market is ░░░░░░░░ in transitory environments even ░░░░░░░░ one your breakevens significantly ░░░░░░░░ where we have had ░░░░░░░░ up 5 2 above ░░░░░░░░ 2 above 7 and ░░░░░░░░ curve is downward sloping ░░░░░░░░ further out you go ░░░░░░░░ rates market is pricing ░░░░░░░░ inflation in the transitory ░░░░░░░░ It will abate over ░░░░░░░░ The opportunity for investors ░░░░░░░░ not what you think ░░░░░░░░ happen It s more ░░░░░░░░ was priced in In ░░░░░░░░ market it is about ░░░░░░░░ low and selling high ░░░░░░░░ term inflation expectations are ░░░░░░░░ high The market believes ░░░░░░░░ Fed will stop this ░░░░░░░░ burden with the rate ░░░░░░░░ Caroline meanwhilee we continue ░░░░░░░░ have the narrative about ░░░░░░░░ Yellen talking about whether ░░░░░░░░ will be on the ░░░░░░░░ S trajectory from the ░░░░░░░░ on Russia in Ukraine ░░░░░░░░ don t expect a ░░░░░░░░ impact so far To ░░░░░░░░ back to volatility and ░░░░░░░░ you are so focused ░░░░░░░░ with inflation having hedging ░░░░░░░░ people dramatically changing their ░░░░░░░░ to what has happened ░░░░░░░░ last couple of days ░░░░░░░░ our phones have been ░░░░░░░░ off the hook with ░░░░░░░░ hydrology etf The administration ░░░░░░░░ is unfortunate because it ░░░░░░░░ the breadbasket of the ░░░░░░░░ and you see a ░░░░░░░░ in energy prices because ░░░░░░░░ Russia s exports It ░░░░░░░░ a concern but experts ░░░░░░░░ looking for long volatility ░░░░░░░░ well as potential inflation ░░░░░░░░ during these uncertain times ░░░░░░░░ do our thing to ░░░░░░░░ up the investor interest ░░░░░░░░ s definitely not an ░░░░░░░░ time for inflation expectations ░░░░░░░░ the market does not ░░░░░░░░ have those priced in ░░░░░░░░ is something that will ░░░░░░░░ around Caroline it is ░░░░░░░░ to catch up with ░░░░░░░░ Founder in cio of ░░░░░░░░ capital management Phones ringing ░░░░░░░░ the hook We have ░░░░░░░░ a market that has ░░░░░░░░ reversed yesterday Romaine it ░░░░░░░░ interesting to see as ░░░░░░░░ get some key data ░░░░░░░░ Friday with the jobs ░░░░░░░░ inflations report next week ░░░░░░░░ then the Fed meeting ░░░░░░░░ two weeks Taylor the ░░░░░░░░ year breakevens are unbelievable ░░░░░░░░ 3 we have never ░░░░░░░░ that before Romaine with ░░░░░░░░ to automobiles the treasury ░░░░░░░░ is not back to ░░░░░░░░ it was We are ░░░░░░░░ close to the closing ░░░░░░░░ We have our eyes ░░░░░░░░ the equity market Full ░░░░░░░░ coverage as always as ░░░░░░░░ take you to the ░░░░░░░░ and beyond Announcer beyond ░░░░░░░░ bell bloomberg s comprehensive ░░░░░░░░ platform coverage of the ░░░░░░░░ S market close starts ░░░░░░░░ now Romaine we are ░░░░░░░░ minutes away from the ░░░░░░░░ of the trading day ░░░░░░░░ bostick Caroline hyde Taylor ░░░░░░░░ counting you down to ░░░░░░░░ closing bell It is ░░░░░░░░ global simulcast Tim throne ░░░░░░░░ make Tim Stenovec RUSH ░░░░░░░░ Please stand by What ░░░░░░░░ different day it makes ░░░░░░░░ start to refocus on ░░░░░░░░ the central bank might ░░░░░░░░ like 2 8 up ░░░░░░░░ the small packs caps ░░░░░░░░ vix elevated but as ░░░░░░░░ look at geopolitics and ░░░░░░░░ reactions on the other ░░░░░░░░ see crude continuing to ░░░░░░░░ higher 8 2 on ░░░░░░░░ You see the bloomberg ░░░░░░░░ index at noon highs ░░░░░░░░ was also portfolio manager ░░░░░░░░ the etf We March ░░░░░░░░ the market close and ░░░░░░░░ a lot about volatility ░░░░░░░░ the market What do ░░░░░░░░ see with continuing to ░░░░░░░░ I think it works ░░░░░░░░ both sides up and ░░░░░░░░ It is a very ░░░░░░░░ time to think about ░░░░░░░░ correlated assets Historically volatility ░░░░░░░░ helped and there is ░░░░░░░░ of different types of ░░░░░░░░ Whether it is the ░░░░░░░░ gold rates market equities ░░░░░░░░ with the options market ░░░░░░░░ a bond market Options ░░░░░░░░ a kleenex versus the ░░░░░░░░ It is the same ░░░░░░░░ Romaine I am curious ░░░░░░░░ whether they you view ░░░░░░░░ is happening now as ░░░░░░░░ for lack of a ░░░░░░░░ phrase Obviously I feel ░░░░░░░░ heart goes out to ░░░░░░░░ in Ukraine and the ░░░░░░░░ for freedom and safety ░░░░░░░░ don t think it ░░░░░░░░ good ball It is ░░░░░░░░ reminder that whenever anyone ░░░░░░░░ worried about something happening ░░░░░░░░ the fut ure it ░░░░░░░░ something unexpected that surprises ░░░░░░░░ market like this environment ░░░░░░░░ inflation expectations or things ░░░░░░░░ of p oeple s ░░░░░░░░ You cannot really time ░░░░░░░░ voltailty especially in The ░░░░░░░░ income side it is ░░░░░░░░ you should have as ░░░░░░░░ of a diversified asset ░░░░░░░░ Taylor do you feel ░░░░░░░░ when you get big ░░░░░░░░ of rallies maybe with ░░░░░░░░ 30 handle What does ░░░░░░░░ signal with you Nancy ░░░░░░░░ is uncharted territory We ░░░░░░░░ had quantitative easing and ░░░░░░░░ now the Fed is ░░░░░░░░ Today they are still ░░░░░░░░ bonds We have not ░░░░░░░░ the injection let alone ░░░░░░░░ sheet reduction rolling off ░░░░░░░░ is good for investors ░░░░░░░░ be prepared for more ░░░░░░░░ especially in the bond ░░░░░░░░ because we have never ░░░░░░░░ this before Caroline it ░░░░░░░░ to be repricing that ░░░░░░░░ Romaine we are in ░░░░░░░░ with Nancy Davis founder ░░░░░░░░ quadratic capital management We ░░░░░░░░ at the equity markets ░░░░░░░░ basis points 17 on ░░░░░░░░ pie 1 5 to ░░░░░░░░ the two year yield ░░░░░░░░ whiplash kind of day ░░░░░░░░ again We take you ░░░░░░░░ the closing bell 15 ░░░░░░░░ to close This is ░░░░░░░░ Caroline this is count ░░░░░░░░ the close You guys ░░░░░░░░ making finance jokes again ░░░░░░░░ let s look at ░░░░░░░░ stuff are you Let ░░░░░░░░ look at what happened ░░░░░░░░ what we are experiencing ░░░░░░░░ the market We are ░░░░░░░░ higher after the ice ░░░░░░░░ Ukraine and across the ░░░░░░░░ stocks are down Caroline ░░░░░░░░ well off the highs ░░░░░░░░ where we were a ░░░░░░░░ of months ago hereby ░░░░░░░░ did see this is ░░░░░░░░ based more than 90 ░░░░░░░░ the S P higher ░░░░░░░░ the day Bank stops ░░░░░░░░ backup 4 Transports and ░░░░░░░░ having a good day ░░░░░░░░ seeing a pretty decent ░░░░░░░░ and a lot of ░░░░░░░░ names have a lot ░░░░░░░░ people been on the ░░░░░░░░ that consumer spending Taylor ░░░░░░░░ Davis founder and cio ░░░░░░░░ quadratic capital management still ░░░░░░░░ us We hinted earlier ░░░░░░░░ talking about bonds so ░░░░░░░░ s go there We ░░░░░░░░ the sense that the ░░░░░░░░ Reserve is continuing with ░░░░░░░░ hikes They are really ░░░░░░░░ about attacking inflation despite ░░░░░░░░ an economic slowdown we ░░░░░░░░ get given geopolitical events ░░░░░░░░ it is definitely a ░░░░░░░░ to your point We ░░░░░░░░ geopolitical events and domestic ░░░░░░░░ We do have inflation ░░░░░░░░ terms of realizing a ░░░░░░░░ of whether rate hikes ░░░░░░░░ matter and whether that ░░░░░░░░ enough to stop the ░░░░░░░░ we are seeing in ░░░░░░░░ life Caroline stagflation What ░░░░░░░░ you make of it ░░░░░░░░ stocks and bonds are ░░░░░░░░ year to date Powell ░░░░░░░░ kind of squashed the ░░░░░░░░ that we are having ░░░░░░░░ plastic equity down day ░░░░░░░░ you look year to ░░░░░░░░ stocks and bonds are ░░░░░░░░ altogether That s stagflation ░░░░░░░░ it is hard to ░░░░░░░░ Romaine now there is ░░░░░░░░ that people are going ░░░░░░░░ head to a tightening ░░░░░░░░ of some degree or ░░░░░░░░ with oil prices at ░░░░░░░░ we have not seen ░░░░░░░░ years and other commodity ░░░░░░░░ for sale If the ░░░░░░░░ doesn t hold up ░░░░░░░░ we find yourself in ░░░░░░░░ stagflation something we will ░░░░░░░░ about how does this ░░░░░░░░ investment Nancy investors need ░░░░░░░░ rethink the 60 40 ░░░░░░░░ and have the rest ░░░░░░░░ buying assets included in ░░░░░░░░ portfolio It is not ░░░░░░░░ the stock curves are ░░░░░░░░ is about where the ░░░░░░░░ kurds are and oil ░░░░░░░░ the vix market the ░░░░░░░░ market all these markets ░░░░░░░░ the stock p rices ░░░░░░░░ higher than the future ░░░░░░░░ That low growth environment ░░░░░░░░ being priced into markets ░░░░░░░░ it is an opportune ░░░░░░░░ to take advantage of ░░░░░░░░ is expected in the ░░░░░░░░ not today Powell has ░░░░░░░░ very successful and is ░░░░░░░░ the rates market they ░░░░░░░░ be hiking It is ░░░░░░░░ in romaine You can ░░░░░░░░ that reflected in the ░░░░░░░░ action today with the ░░░░░░░░ up 16 basis points ░░░░░░░░ biggest move higher on ░░░░░░░░ 10 year going back ░░░░░░░░ the pandemic in March ░░░░░░░░ In conversation with Nancy ░░░░░░░░ at quadratic capital management ░░░░░░░░ is sticking with us ░░░░░░░░ we count you down ░░░░░░░░ the closing bell six ░░░░░░░░ away We will get ░░░░░░░░ to Nancy in a ░░░░░░░░ Taylor we talk a ░░░░░░░░ about yields higher today ░░░░░░░░ bringing back into focus ░░░░░░░░ gr owthiest company the ░░░░░░░░ we have seen on ░░░░░░░░ day like this The ░░░░░░░░ is up 1 2 ░░░░░░░░ will get corporate results ░░░░░░░░ quarterly results after the ░░░░░░░░ 373 million earnings for ░░░░░░░░ with a gain of ░░░░░░░░ cents but this has ░░░░░░░░ a big lesson with ░░░░░░░░ stocks that went up ░░░░░░░░ 400 from 120 and ░░░░░░░░ down to 266 How ░░░░░░░░ we think about the ░░░░░░░░ companies when we thing ░░░░░░░░ a rising rate environment ░░░░░░░░ me bring you back ░░░░░░░░ The rate environment comes ░░░░░░░░ to where we started ░░░░░░░░ inflationary environment I think ░░░░░░░░ caught my eye is ░░░░░░░░ you have a two ░░░░░░░░ breakeven that is record ░░░░░░░░ You re still getting ░░░░░░░░ 30 year inflation break ░░░░░░░░ on the horizon Confident ░░░░░░░░ can keep long term ░░░░░░░░ anchored despite the records ░░░░░░░░ are seeing in to ░░░░░░░░ breakevens Nancy Taylor to ░░░░░░░░ point the breakeven market ░░░░░░░░ pricing in transitory environments ░░░░░░░░ one one your breakevens ░░░░░░░░ lower where we have ░░░░░░░░ CPI up 5 2 ░░░░░░░░ 6 2 above 7 ░░░░░░░░ the curve is downward ░░░░░░░░ the further out you ░░░░░░░░ The rates market is ░░░░░░░░ in inflation in the ░░░░░░░░ thing It will abate ░░░░░░░░ time The opportunity for ░░░░░░░░ is not what you ░░░░░░░░ will happen It s ░░░░░░░░ looking was priced in ░░░░░░░░ every market it is ░░░░░░░░ buying low and selling ░░░░░░░░ Long term inflation expectations ░░░░░░░░ not high The market ░░░░░░░░ the Fed will stop ░░░░░░░░ inflationary burden with the ░░░░░░░░ hikes Caroline meanwhilee we ░░░░░░░░ to have the narrative ░░░░░░░░ Janet Yellen talking about ░░░░░░░░ there will be on ░░░░░░░░ U S trajectory from ░░░░░░░░ war on Russia in ░░░░░░░░ They don t expect ░░░░░░░░ major impact so far ░░░░░░░░ circle back to volatility ░░░░░░░░ something you are so ░░░░░░░░ on with inflation having ░░░░░░░░ are people dramatically changing ░░░░░░░░ response to what has ░░░░░░░░ the last couple of ░░░░░░░░ Nancy our phones have ░░░░░░░░ ringing off the hook ░░░░░░░░ the hydrology etf The ░░░░░░░░ it is unfortunate because ░░░░░░░░ is the breadbasket of ░░░░░░░░ world and you see ░░░░░░░░ spike in energy prices ░░░░░░░░ of Russia s exports ░░░░░░░░ is a concern but ░░░░░░░░ are looking for long ░░░░░░░░ as well as potential ░░░░░░░░ exposure during these uncertain ░░░░░░░░ We do our thing ░░░░░░░░ pick up the investor ░░░░░░░░ It s definitely not ░░░░░░░░ expensive time for inflation ░░░░░░░░ because the market does ░░░░░░░░ really have those priced ░░░░░░░░ It is something that ░░░░░░░░ stick around Caroline it ░░░░░░░░ great to catch up ░░░░░░░░ you Founder in cio ░░░░░░░░ quadratic capital management Phones ░░░░░░░░ off the hook We ░░░░░░░░ had a market that ░░░░░░░░ completely reversed yesterday Romaine ░░░░░░░░ is interesting to see ░░░░░░░░ we get some key ░░░░░░░░ on Friday with the ░░░░░░░░ report inflations report next ░░░░░░░░ and then the Fed ░░░░░░░░ in two weeks Taylor ░░░░░░░░ two year breakevens are ░░░░░░░░ 4 3 we have ░░░░░░░░ seen that before Romaine ░░░░░░░░ regards to automobiles the ░░░░░░░░ market is not back ░░░░░░░░ where it was We ░░░░░░░░ moving close to the ░░░░░░░░ bell We have our ░░░░░░░░ on the equity market ░░░░░░░░ market coverage as always ░░░░░░░░ we take you to ░░░░░░░░ bell and beyond Announcer ░░░░░░░░ the bell bloomberg s ░░░░░░░░ cross platform coverage of ░░░░░░░░ U S market close ░░░░░░░░ right now Romaine we ░░░░░░░░ two minutes away from ░░░░░░░░ end of the trading ░░░░░░░░ Romaine bostick Caroline hyde ░░░░░░░░ riggs counting you down ░░░░░░░░ the closing bell It ░░░░░░░░ our global simulcast Tim ░░░░░░░░ s make Tim Stenovec ░░░░░░░░ TRANSCRIPT Please stand by ░░░░░░░░ a different day it ░░░░░░░░ We start to refocus ░░░░░░░░ what the central bank ░░░░░░░░ look like 2 8 ░░░░░░░░ on the small packs ░░░░░░░░ The vix elevated but ░░░░░░░░ we look at geopolitics ░░░░░░░░ the reactions on the ░░░░░░░░ we see crude continuing ░░░░░░░░ push higher 8 2 ░░░░░░░░ crude You see the ░░░░░░░░ commodity index at noon ░░░░░░░░ She was also portfolio ░░░░░░░░ for the etf We ░░░░░░░░ toward the market close ░░░░░░░░ talk a lot about ░░░░░░░░ in the market What ░░░░░░░░ you see with continuing ░░░░░░░░ experience I think it ░░░░░░░░ on both sides up ░░░░░░░░ down It is a ░░░░░░░░ opportune time to think ░░░░░░░░ non correlated assets Historically ░░░░░░░░ as helped and there ░░░░░░░░ lots of different types ░░░░░░░░ volatility Whether it is ░░░░░░░░ oil gold rates market ░░░░░░░░ anything with the options ░░░░░░░░ has a bond market ░░░░░░░░ are a kleenex versus ░░░░░░░░ tissue It is the ░░░░░░░░ thing Romaine I am ░░░░░░░░ about whether they you ░░░░░░░░ what is happening now ░░░░░░░░ good for lack of ░░░░░░░░ better phrase Obviously I ░░░░░░░░ my heart goes out ░░░░░░░░ those in Ukraine and ░░░░░░░░ fight for freedom and ░░░░░░░░ I don t think ░░░░░░░░ is good ball It ░░░░░░░░ a reminder that whenever ░░░░░░░░ is worried about something ░░░░░░░░ in the fut ure ░░░░░░░░ is something unexpected that ░░░░░░░░ the market like this ░░░░░░░░ or inflation expectations or ░░░░░░░░ out of p oeple ░░░░░░░░ control You cannot really ░░░░░░░░ window voltailty especially in ░░░░░░░░ fixed income side it ░░░░░░░░ something you should have ░░░░░░░░ part of a diversified ░░░░░░░░ allocation Taylor do you ░░░░░░░░ nervous when you get ░░░░░░░░ types of rallies maybe ░░░░░░░░ a 30 handle What ░░░░░░░░ that signal with you ░░░░░░░░ this is uncharted territory ░░░░░░░░ have had quantitative easing ░░░░░░░░ right now the Fed ░░░░░░░░ tapering Today they are ░░░░░░░░ buying bonds We have ░░░░░░░░ experienced the injection let ░░░░░░░░ balance sheet reduction rolling ░░░░░░░░ It is good for ░░░░░░░░ to be prepared for ░░░░░░░░ volatility especially in the ░░░░░░░░ market because we have ░░░░░░░░ had this before Caroline ░░░░░░░░ appears to be repricing ░░░░░░░░ an Romaine we are ░░░░░░░░ conversation with Nancy Davis ░░░░░░░░ of quadratic capital management ░░░░░░░░ look at the equity ░░░░░░░░ 18 basis points 17 ░░░░░░░░ the pie 1 5 ░░░░░░░░ one the two year ░░░░░░░░ Caroline whiplash kind of ░░░░░░░░ once again We take ░░░░░░░░ to the closing bell ░░░░░░░░ minutes to close This ░░░░░░░░ bloomberg Caroline this is ░░░░░░░░ onto the close You ░░░░░░░░ are making finance jokes ░░░░░░░░ Meanwhile let s look ░░░░░░░░ finance stuff are you ░░░░░░░░ s look at what ░░░░░░░░ with what we are ░░░░░░░░ in the market We ░░░░░░░░ actually higher after the ░░░░░░░░ with Ukraine and across ░░░░░░░░ board stocks are down ░░░░░░░░ still well off the ░░░░░░░░ of where we were ░░░░░░░░ couple of months ago ░░░░░░░░ you did see this ░░░░░░░░ broad based more than ░░░░░░░░ of the S P ░░░░░░░░ on the day Bank ░░░░░░░░ stocks backup 4 Transports ░░░░░░░░ energy having a good ░░░░░░░░ Actually seeing a pretty ░░░░░░░░ rally and a lot ░░░░░░░░ those names have a ░░░░░░░░ of people been on ░░░░░░░░ idea that consumer spending ░░░░░░░░ Nancy Davis founder and ░░░░░░░░ of quadratic capital management ░░░░░░░░ with us We hinted ░░░░░░░░ about talking about bonds ░░░░░░░░ let s go there ░░░░░░░░ got the sense that ░░░░░░░░ Federal Reserve is continuing ░░░░░░░░ rate hikes They are ░░░░░░░░ serious about attacking inflation ░░░░░░░░ maybe an economic slowdown ░░░░░░░░ could get given geopolitical ░░░░░░░░ Taylor it is definitely ░░░░░░░░ push to your point ░░░░░░░░ have geopolitical events and ░░░░░░░░ inflation We do have ░░░░░░░░ in terms of realizing ░░░░░░░░ question of whether rate ░░░░░░░░ will matter and whether ░░░░░░░░ is enough to stop ░░░░░░░░ inflation we are seeing ░░░░░░░░ everyday life Caroline stagflation ░░░░░░░░ do you make of ░░░░░░░░ Nancy stocks and bonds ░░░░░░░░ down year to date ░░░░░░░░ has kind of squashed ░░░░░░░░ fears that we are ░░░░░░░░ a plastic equity down ░░░░░░░░ If you look year ░░░░░░░░ date stocks and bonds ░░░░░░░░ falling altogether That s ░░░░░░░░ so it is hard ░░░░░░░░ say Romaine now there ░░░░░░░░ concern that people are ░░░░░░░░ to head to a ░░░░░░░░ cycle of some degree ░░░░░░░░ another with oil prices ░░░░░░░░ levels we have not ░░░░░░░░ in years and other ░░░░░░░░ prices for sale If ░░░░░░░░ growth doesn t hold ░░░░░░░░ and we find yourself ░░░░░░░░ a stagflation something we ░░░░░░░░ talk about how does ░░░░░░░░ change investment Nancy investors ░░░░░░░░ to rethink the 60 ░░░░░░░░ portfolio and have the ░░░░░░░░ of buying assets included ░░░░░░░░ the portfolio It is ░░░░░░░░ where the stock curves ░░░░░░░░ It is about where ░░░░░░░░ borrowed kurds are and ░░░░░░░░ markets the vix market ░░░░░░░░ rate market all these ░░░░░░░░ mean the stock p ░░░░░░░░ are higher than the ░░░░░░░░ prices That low growth ░░░░░░░░ is being priced into ░░░░░░░░ and it is an ░░░░░░░░ time to take advantage ░░░░░░░░ what is expected in ░░░░░░░░ future not today Powell ░░░░░░░░ been very successful and ░░░░░░░░ convinced the rates market ░░░░░░░░ will be hiking It ░░░░░░░░ priced in romaine You ░░░░░░░░ see that reflected in ░░░░░░░░ price action today with ░░░░░░░░ yield up 16 basis ░░░░░░░░ the biggest move higher ░░░░░░░░ the 10 year going ░░░░░░░░ to the pandemic in ░░░░░░░░ 2020 In conversation with ░░░░░░░░ Davis at quadratic capital ░░░░░░░░ she is sticking with ░░░░░░░░ as we count you ░░░░░░░░ to the closing bell ░░░░░░░░ minutes away We will ░░░░░░░░ back to Nancy in ░░░░░░░░ moment Taylor we talk ░░░░░░░░ lot about yields higher ░░░░░░░░ candidates bringing back into ░░░░░░░░ the gr owthiest company ░░░░░░░░ revaluation we have seen ░░░░░░░░ A day like this ░░░░░░░░ stock is up 1 ░░░░░░░░ we will get corporate ░░░░░░░░ the quarterly results after ░░░░░░░░ bell 373 million earnings ░░░░░░░░ share with a gain ░░░░░░░░ three cents but this ░░░░░░░░ been a big lesson ░░░░░░░░ the stocks that went ░░░░░░░░ to 400 from 120 ░░░░░░░░ hovers down to 266 ░░░░░░░░ do we think about ░░░░░░░░ growthiest companies when we ░░░░░░░░ about a rising rate ░░░░░░░░ Let me bring you ░░░░░░░░ here The rate environment ░░░░░░░░ back to where we ░░░░░░░░ The inflationary environment I ░░░░░░░░ what caught my eye ░░░░░░░░ when you have a ░░░░░░░░ year breakeven that is ░░░░░░░░ highs You re still ░░░░░░░░ anchoring 30 year inflation ░░░░░░░░ out on the horizon ░░░░░░░░ you can keep long ░░░░░░░░ inflation anchored despite the ░░░░░░░░ we are seeing in ░░░░░░░░ your breakevens Nancy Taylor ░░░░░░░░ your point the breakeven ░░░░░░░░ is pricing in transitory ░░░░░░░░ even one one your ░░░░░░░░ significantly lower where we ░░░░░░░░ had CPI up 5 ░░░░░░░░ above 6 2 above ░░░░░░░░ and the curve is ░░░░░░░░ sloping the further out ░░░░░░░░ go The rates market ░░░░░░░░ pricing in inflation in ░░░░░░░░ transitory thing It will ░░░░░░░░ over time The opportunity ░░░░░░░░ investors is not what ░░░░░░░░ think will happen It ░░░░░░░░ more looking was priced ░░░░░░░░ In every market it ░░░░░░░░ about buying low and ░░░░░░░░ high Long term inflation ░░░░░░░░ are not high The ░░░░░░░░ believes the Fed will ░░░░░░░░ this inflationary burden with ░░░░░░░░ rate hikes Caroline meanwhilee ░░░░░░░░ continue to have the ░░░░░░░░ about Janet Yellen talking ░░░░░░░░ whether there will be ░░░░░░░░ the U S trajectory ░░░░░░░░ the war on Russia ░░░░░░░░ Ukraine They don t ░░░░░░░░ a major impact so ░░░░░░░░ To circle back to ░░░░░░░░ and something you are ░░░░░░░░ focused on with inflation ░░░░░░░░ hedging are people dramatically ░░░░░░░░ their response to what ░░░░░░░░ happened the last couple ░░░░░░░░ days Nancy our phones ░░░░░░░░ been ringing off the ░░░░░░░░ with the hydrology etf ░░░░░░░░ administration it is unfortunate ░░░░░░░░ it is the breadbasket ░░░░░░░░ the world and you ░░░░░░░░ a spike in energy ░░░░░░░░ because of Russia s ░░░░░░░░ It is a concern ░░░░░░░░ experts are looking for ░░░░░░░░ volatility as well as ░░░░░░░░ inflation exposure during these ░░░░░░░░ times We do our ░░░░░░░░ to pick up the ░░░░░░░░ interest It s definitely ░░░░░░░░ an expensive time for ░░░░░░░░ expectations because the market ░░░░░░░░ not really have those ░░░░░░░░ in It is something ░░░░░░░░ will stick around Caroline ░░░░░░░░ is great to catch ░░░░░░░░ with you Founder in ░░░░░░░░ of quadratic capital management ░░░░░░░░ ringing off the hook ░░░░░░░░ have had a market ░░░░░░░░ has completely reversed yesterday ░░░░░░░░ it is interesting to ░░░░░░░░ as we get some ░░░░░░░░ data on Friday with ░░░░░░░░ jobs report inflations report ░░░░░░░░ week and then the ░░░░░░░░ meeting in two weeks ░░░░░░░░ the two year breakevens ░░░░░░░░ unbelievable 4 3 we ░░░░░░░░ never seen that before ░░░░░░░░ with regards to automobiles ░░░░░░░░ treasury market is not ░░░░░░░░ to where it was ░░░░░░░░ are moving close to ░░░░░░░░ closing bell We have ░░░░░░░░ eyes on the equity ░░░░░░░░ Full market coverage as ░░░░░░░░ as we take you ░░░░░░░░ the bell and beyond ░░░░░░░░ beyond the bell bloomberg ░░░░░░░░ comprehensive cross platform coverage ░░░░░░░░ the U S market ░░░░░░░░ starts right now Romaine ░░░░░░░░ are two minutes away ░░░░░░░░ the end of the ░░░░░░░░ day Romaine bostick Caroline ░░░░░░░░ Taylor riggs counting you ░░░░░░░░ to the closing bell ░░░░░░░░ is our global simulcast ░░░░░░░░ throne s make Tim ░░░░░░░░ RUSH TRANSCRIPT Please stand ░░░░░░░░ What a different day ░░░░░░░░ makes We start to ░░░░░░░░ on what the central ░░░░░░░░ might look like 2 ░░░░░░░░ up on the small ░░░░░░░░ caps The vix elevated ░░░░░░░░ as we look at ░░░░░░░░ and the reactions on ░░░░░░░░ other we see crude ░░░░░░░░ to push higher 8 ░░░░░░░░ on crude You see ░░░░░░░░ bloomberg commodity index at ░░░░░░░░ highs She was also ░░░░░░░░ manager for the etf ░░░░░░░░ March toward the market ░░░░░░░░ and talk a lot ░░░░░░░░ volatility in the market ░░░░░░░░ do you see with ░░░░░░░░ to experience I think ░░░░░░░░ works on both sides ░░░░░░░░ and down It is ░░░░░░░░ very opportune time to ░░░░░░░░ about non correlated assets ░░░░░░░░ volatility as helped and ░░░░░░░░ is lots of different ░░░░░░░░ of volatility Whether it ░░░░░░░░ the oil gold rates ░░░░░░░░ equities anything with the ░░░░░░░░ market has a bond ░░░░░░░░ Options are a kleenex ░░░░░░░░ the tissue It is ░░░░░░░░ same thing Romaine I ░░░░░░░░ curious about whether they ░░░░░░░░ view what is happening ░░░░░░░░ as good for lack ░░░░░░░░ a better phrase Obviously ░░░░░░░░ feel my heart goes ░░░░░░░░ to those in Ukraine ░░░░░░░░ the fight for freedom ░░░░░░░░ safety I don t ░░░░░░░░ it is good ball ░░░░░░░░ is a reminder that ░░░░░░░░ anyone is worried about ░░░░░░░░ happening in the fut ░░░░░░░░ it is something unexpected ░░░░░░░░ surprises the market like ░░░░░░░░ environment or inflation expectations ░░░░░░░░ things out of p ░░░░░░░░ s control You cannot ░░░░░░░░ time window voltailty especially ░░░░░░░░ The fixed income side ░░░░░░░░ is something you should ░░░░░░░░ as part of a ░░░░░░░░ asset allocation Taylor do ░░░░░░░░ feel nervous when you ░░░░░░░░ big types of rallies ░░░░░░░░ with a 30 handle ░░░░░░░░ does that signal with ░░░░░░░░ Nancy this is uncharted ░░░░░░░░ We have had quantitative ░░░░░░░░ and right now the ░░░░░░░░ is tapering Today they ░░░░░░░░ still buying bonds We ░░░░░░░░ not experienced the injection ░░░░░░░░ alone balance sheet reduction ░░░░░░░░ off It is good ░░░░░░░░ investors to be prepared ░░░░░░░░ more volatility especially in ░░░░░░░░ bond market because we ░░░░░░░░ never had this before ░░░░░░░░ it appears to be ░░░░░░░░ that an Romaine we ░░░░░░░░ in conversation with Nancy ░░░░░░░░ founder of quadratic capital ░░░░░░░░ We look at the ░░░░░░░░ markets 18 basis points ░░░░░░░░ on the pie 1 ░░░░░░░░ to one the two ░░░░░░░░ yield Caroline whiplash kind ░░░░░░░░ day once again We ░░░░░░░░ you to the closing ░░░░░░░░ 15 minutes to close ░░░░░░░░ is bloomberg Caroline this ░░░░░░░░ count onto the close ░░░░░░░░ guys are making finance ░░░░░░░░ again Meanwhile let s ░░░░░░░░ at finance stuff are ░░░░░░░░ Let s look at ░░░░░░░░ happened with what we ░░░░░░░░ experiencing in the market ░░░░░░░░ are actually higher after ░░░░░░░░ ice with Ukraine and ░░░░░░░░ the board stocks are ░░░░░░░░ Caroline still well off ░░░░░░░░ highs of where we ░░░░░░░░ a couple of months ░░░░░░░░ hereby you did see ░░░░░░░░ is broad based more ░░░░░░░░ 90 of the S ░░░░░░░░ higher on the day ░░░░░░░░ stops stocks backup 4 ░░░░░░░░ and energy having a ░░░░░░░░ day Actually seeing a ░░░░░░░░ decent rally and a ░░░░░░░░ of those names have ░░░░░░░░ lot of people been ░░░░░░░░ the idea that consumer ░░░░░░░░ Taylor Nancy Davis founder ░░░░░░░░ cio of quadratic capital ░░░░░░░░ still with us We ░░░░░░░░ earlier about talking about ░░░░░░░░ so let s go ░░░░░░░░ We got the sense ░░░░░░░░ the Federal Reserve is ░░░░░░░░ with rate hikes They ░░░░░░░░ really serious about attacking ░░░░░░░░ despite maybe an economic ░░░░░░░░ we could get given ░░░░░░░░ events Taylor it is ░░░░░░░░ a push to your ░░░░░░░░ We have geopolitical events ░░░░░░░░ domestic inflation We do ░░░░░░░░ inflation in terms of ░░░░░░░░ a question of whether ░░░░░░░░ hikes will matter and ░░░░░░░░ that is enough to ░░░░░░░░ the inflation we are ░░░░░░░░ in everyday life Caroline ░░░░░░░░ What do you make ░░░░░░░░ it Nancy stocks and ░░░░░░░░ are down year to ░░░░░░░░ Powell has kind of ░░░░░░░░ the fears that we ░░░░░░░░ having a plastic equity ░░░░░░░░ day If you look ░░░░░░░░ to date stocks and ░░░░░░░░ are falling altogether That ░░░░░░░░ stagflation so it is ░░░░░░░░ to say Romaine now ░░░░░░░░ is concern that people ░░░░░░░░ going to head to ░░░░░░░░ tightening cycle of some ░░░░░░░░ or another with oil ░░░░░░░░ at levels we have ░░░░░░░░ seen in years and ░░░░░░░░ commodity prices for sale ░░░░░░░░ the growth doesn t ░░░░░░░░ up and we find ░░░░░░░░ in a stagflation something ░░░░░░░░ will talk about how ░░░░░░░░ this change investment Nancy ░░░░░░░░ need to rethink the ░░░░░░░░ 40 portfolio and have ░░░░░░░░ rest of buying assets ░░░░░░░░ in the portfolio It ░░░░░░░░ not where the stock ░░░░░░░░ are It is about ░░░░░░░░ the borrowed kurds are ░░░░░░░░ oil markets the vix ░░░░░░░░ the rate market all ░░░░░░░░ markets mean the stock ░░░░░░░░ rices are higher than ░░░░░░░░ future prices That low ░░░░░░░░ environment is being priced ░░░░░░░░ markets and it is ░░░░░░░░ opportune time to take ░░░░░░░░ of what is expected ░░░░░░░░ the future not today ░░░░░░░░ has been very successful ░░░░░░░░ is convinced the rates ░░░░░░░░ they will be hiking ░░░░░░░░ is priced in romaine ░░░░░░░░ can see that reflected ░░░░░░░░ the price action today ░░░░░░░░ the yield up 16 ░░░░░░░░ points the biggest move ░░░░░░░░ on the 10 year ░░░░░░░░ back to the pandemic ░░░░░░░░ March 2020 In conversation ░░░░░░░░ Nancy Davis at quadratic ░░░░░░░░ management she is sticking ░░░░░░░░ us as we count ░░░░░░░░ down to the closing ░░░░░░░░ six minutes away We ░░░░░░░░ get back to Nancy ░░░░░░░░ a moment Taylor we ░░░░░░░░ a lot about yields ░░░░░░░░ today candidates bringing back ░░░░░░░░ focus the gr owthiest ░░░░░░░░ the revaluation we have ░░░░░░░░ on A day like ░░░░░░░░ The stock is up ░░░░░░░░ 2 we will get ░░░░░░░░ results the quarterly results ░░░░░░░░ the bell 373 million ░░░░░░░░ for share with a ░░░░░░░░ of three cents but ░░░░░░░░ has been a big ░░░░░░░░ with the stocks that ░░░░░░░░ up to 400 from ░░░░░░░░ and hovers down to ░░░░░░░░ How do we think ░░░░░░░░ the growthiest companies when ░░░░░░░░ thing about a rising ░░░░░░░░ environment Let me bring ░░░░░░░░ back here The rate ░░░░░░░░ comes back to where ░░░░░░░░ started The inflationary environment ░░░░░░░░ think what caught my ░░░░░░░░ is when you have ░░░░░░░░ two year breakeven that ░░░░░░░░ record highs You re ░░░░░░░░ getting anchoring 30 year ░░░░░░░░ break out on the ░░░░░░░░ Confident you can keep ░░░░░░░░ term inflation anchored despite ░░░░░░░░ records we are seeing ░░░░░░░░ to your breakevens Nancy ░░░░░░░░ to your point the ░░░░░░░░ market is pricing in ░░░░░░░░ environments even one one ░░░░░░░░ breakevens significantly lower where ░░░░░░░░ have had CPI up ░░░░░░░░ 2 above 6 2 ░░░░░░░░ 7 and the curve ░░░░░░░░ downward sloping the further ░░░░░░░░ you go The rates ░░░░░░░░ is pricing in inflation ░░░░░░░░ the transitory thing It ░░░░░░░░ abate over time The ░░░░░░░░ for investors is not ░░░░░░░░ you think will happen ░░░░░░░░ s more looking was ░░░░░░░░ in In every market ░░░░░░░░ is about buying low ░░░░░░░░ selling high Long term ░░░░░░░░ expectations are not high ░░░░░░░░ market believes the Fed ░░░░░░░░ stop this inflationary burden ░░░░░░░░ the rate hikes Caroline ░░░░░░░░ we continue to have ░░░░░░░░ narrative about Janet Yellen ░░░░░░░░ about whether there will ░░░░░░░░ on the U S ░░░░░░░░ from the war on ░░░░░░░░ in Ukraine They don ░░░░░░░░ expect a major impact ░░░░░░░░ far To circle back ░░░░░░░░ volatility and something you ░░░░░░░░ so focused on with ░░░░░░░░ having hedging are people ░░░░░░░░ changing their response to ░░░░░░░░ has happened the last ░░░░░░░░ of days Nancy our ░░░░░░░░ have been ringing off ░░░░░░░░ hook with the hydrology ░░░░░░░░ The administration it is ░░░░░░░░ because it is the ░░░░░░░░ of the world and ░░░░░░░░ see a spike in ░░░░░░░░ prices because of Russia ░░░░░░░░ exports It is a ░░░░░░░░ but experts are looking ░░░░░░░░ long volatility as well ░░░░░░░░ potential inflation exposure during ░░░░░░░░ uncertain times We do ░░░░░░░░ thing to pick up ░░░░░░░░ investor interest It s ░░░░░░░░ not an expensive time ░░░░░░░░ inflation expectations because the ░░░░░░░░ does not really have ░░░░░░░░ priced in It is ░░░░░░░░ that will stick around ░░░░░░░░ it is great to ░░░░░░░░ up with you Founder ░░░░░░░░ cio of quadratic capital ░░░░░░░░ Phones ringing off the ░░░░░░░░ We have had a ░░░░░░░░ that has completely reversed ░░░░░░░░ Romaine it is interesting ░░░░░░░░ see as we get ░░░░░░░░ key data on Friday ░░░░░░░░ the jobs report inflations ░░░░░░░░ next week and then ░░░░░░░░ Fed meeting in two ░░░░░░░░ Taylor the two year ░░░░░░░░ are unbelievable 4 3 ░░░░░░░░ have never seen that ░░░░░░░░ Romaine with regards to ░░░░░░░░ the treasury market is ░░░░░░░░ back to where it ░░░░░░░░ We are moving close ░░░░░░░░ the closing bell We ░░░░░░░░ our eyes on the ░░░░░░░░ market Full market coverage ░░░░░░░░ always as we take ░░░░░░░░ to the bell and ░░░░░░░░ Announcer beyond the bell ░░░░░░░░ s comprehensive cross platform ░░░░░░░░ of the U S ░░░░░░░░ close starts right now ░░░░░░░░ we are two minutes ░░░░░░░░ from the end of ░░░░░░░░ trading day Romaine bostick ░░░░░░░░ hyde Taylor riggs counting ░░░░░░░░ down to the closing ░░░░░░░░ It is our global ░░░░░░░░ Tim throne s make ░░░░░░░░ Stenovec RUSH TRANSCRIPT Please ░░░░░░░░ by What a different ░░░░░░░░ it makes We start ░░░░░░░░ refocus on what the ░░░░░░░░ bank might look like ░░░░░░░░ 8 up on the ░░░░░░░░ packs caps The vix ░░░░░░░░ but as we look ░░░░░░░░ geopolitics and the reactions ░░░░░░░░ the other we see ░░░░░░░░ continuing to push higher ░░░░░░░░ 2 on crude You ░░░░░░░░ the bloomberg commodity index ░░░░░░░░ noon highs She was ░░░░░░░░ portfolio manager for the ░░░░░░░░ We March toward the ░░░░░░░░ close and talk a ░░░░░░░░ about volatility in the ░░░░░░░░ What do you see ░░░░░░░░ continuing to experience I ░░░░░░░░ it works on both ░░░░░░░░ up and down It ░░░░░░░░ a very opportune time ░░░░░░░░ think about non correlated ░░░░░░░░ Historically volatility as helped ░░░░░░░░ there is lots of ░░░░░░░░ types of volatility Whether ░░░░░░░░ is the oil gold ░░░░░░░░ market equities anything with ░░░░░░░░ options market has a ░░░░░░░░ market Options are a ░░░░░░░░ versus the tissue It ░░░░░░░░ the same thing Romaine ░░░░░░░░ am curious about whether ░░░░░░░░ you view what is ░░░░░░░░ now as good for ░░░░░░░░ of a better phrase ░░░░░░░░ I feel my heart ░░░░░░░░ out to those in ░░░░░░░░ and the fight for ░░░░░░░░ and safety I don ░░░░░░░░ think it is good ░░░░░░░░ It is a reminder ░░░░░░░░ whenever anyone is worried ░░░░░░░░ something happening in the ░░░░░░░░ ure it is something ░░░░░░░░ that surprises the market ░░░░░░░░ this environment or inflation ░░░░░░░░ or things out of ░░░░░░░░ oeple s control You ░░░░░░░░ really time window voltailty ░░░░░░░░ in The fixed income ░░░░░░░░ it is something you ░░░░░░░░ have as part of ░░░░░░░░ diversified asset allocation Taylor ░░░░░░░░ you feel nervous when ░░░░░░░░ get big types of ░░░░░░░░ maybe with a 30 ░░░░░░░░ What does that signal ░░░░░░░░ you Nancy this is ░░░░░░░░ territory We have had ░░░░░░░░ easing and right now ░░░░░░░░ Fed is tapering Today ░░░░░░░░ are still buying bonds ░░░░░░░░ have not experienced the ░░░░░░░░ let alone balance sheet ░░░░░░░░ rolling off It is ░░░░░░░░ for investors to be ░░░░░░░░ for more volatility especially ░░░░░░░░ the bond market because ░░░░░░░░ have never had this ░░░░░░░░ Caroline it appears to ░░░░░░░░ repricing that an Romaine ░░░░░░░░ are in conversation with ░░░░░░░░ Davis founder of quadratic ░░░░░░░░ management We look at ░░░░░░░░ equity markets 18 basis ░░░░░░░░ 17 on the pie ░░░░░░░░ 5 to one the ░░░░░░░░ year yield Caroline whiplash ░░░░░░░░ of day once again ░░░░░░░░ take you to the ░░░░░░░░ bell 15 minutes to ░░░░░░░░ This is bloomberg Caroline ░░░░░░░░ is count onto the ░░░░░░░░ You guys are making ░░░░░░░░ jokes again Meanwhile let ░░░░░░░░ look at finance stuff ░░░░░░░░ you Let s look ░░░░░░░░ what happened with what ░░░░░░░░ are experiencing in the ░░░░░░░░ We are actually higher ░░░░░░░░ the ice with Ukraine ░░░░░░░░ across the board stocks ░░░░░░░░ down Caroline still well ░░░░░░░░ the highs of where ░░░░░░░░ were a couple of ░░░░░░░░ ago hereby you did ░░░░░░░░ this is broad based ░░░░░░░░ than 90 of the ░░░░░░░░ P higher on the ░░░░░░░░ Bank stops stocks backup ░░░░░░░░ Transports and energy having ░░░░░░░░ good day Actually seeing ░░░░░░░░ pretty decent rally and ░░░░░░░░ lot of those names ░░░░░░░░ a lot of people ░░░░░░░░ on the idea that ░░░░░░░░ spending Taylor Nancy Davis ░░░░░░░░ and cio of quadratic ░░░░░░░░ management still with us ░░░░░░░░ hinted earlier about talking ░░░░░░░░ bonds so let s ░░░░░░░░ there We got the ░░░░░░░░ that the Federal Reserve ░░░░░░░░ continuing with rate hikes ░░░░░░░░ are really serious about ░░░░░░░░ inflation despite maybe an ░░░░░░░░ slowdown we could get ░░░░░░░░ geopolitical events Taylor it ░░░░░░░░ definitely a push to ░░░░░░░░ point We have geopolitical ░░░░░░░░ and domestic inflation We ░░░░░░░░ have inflation in terms ░░░░░░░░ realizing a question of ░░░░░░░░ rate hikes will matter ░░░░░░░░ whether that is enough ░░░░░░░░ stop the inflation we ░░░░░░░░ seeing in everyday life ░░░░░░░░ stagflation What do you ░░░░░░░░ of it Nancy stocks ░░░░░░░░ bonds are down year ░░░░░░░░ date Powell has kind ░░░░░░░░ squashed the fears that ░░░░░░░░ are having a plastic ░░░░░░░░ down day If you ░░░░░░░░ year to date stocks ░░░░░░░░ bonds are falling altogether ░░░░░░░░ s stagflation so it ░░░░░░░░ hard to say Romaine ░░░░░░░░ there is concern that ░░░░░░░░ are going to head ░░░░░░░░ a tightening cycle of ░░░░░░░░ degree or another with ░░░░░░░░ prices at levels we ░░░░░░░░ not seen in years ░░░░░░░░ other commodity prices for ░░░░░░░░ If the growth doesn ░░░░░░░░ hold up and we ░░░░░░░░ yourself in a stagflation ░░░░░░░░ we will talk about ░░░░░░░░ does this change investment ░░░░░░░░ investors need to rethink ░░░░░░░░ 60 40 portfolio and ░░░░░░░░ the rest of buying ░░░░░░░░ included in the portfolio ░░░░░░░░ is not where the ░░░░░░░░ curves are It is ░░░░░░░░ where the borrowed kurds ░░░░░░░░ and oil markets the ░░░░░░░░ market the rate market ░░░░░░░░ these markets mean the ░░░░░░░░ p rices are higher ░░░░░░░░ the future prices That ░░░░░░░░ growth environment is being ░░░░░░░░ into markets and it ░░░░░░░░ an opportune time to ░░░░░░░░ advantage of what is ░░░░░░░░ in the future not ░░░░░░░░ Powell has been very ░░░░░░░░ and is convinced the ░░░░░░░░ market they will be ░░░░░░░░ It is priced in ░░░░░░░░ You can see that ░░░░░░░░ in the price action ░░░░░░░░ with the yield up ░░░░░░░░ basis points the biggest ░░░░░░░░ higher on the 10 ░░░░░░░░ going back to the ░░░░░░░░ in March 2020 In ░░░░░░░░ with Nancy Davis at ░░░░░░░░ capital management she is ░░░░░░░░ with us as we ░░░░░░░░ you down to the ░░░░░░░░ bell six minutes away ░░░░░░░░ will get back to ░░░░░░░░ in a moment Taylor ░░░░░░░░ talk a lot about ░░░░░░░░ higher today candidates bringing ░░░░░░░░ into focus the gr ░░░░░░░░ company the revaluation we ░░░░░░░░ seen on A day ░░░░░░░░ this The stock is ░░░░░░░░ 1 2 we will ░░░░░░░░ corporate results the quarterly ░░░░░░░░ after the bell 373 ░░░░░░░░ earnings for share with ░░░░░░░░ gain of three cents ░░░░░░░░ this has been a ░░░░░░░░ lesson with the stocks ░░░░░░░░ went up to 400 ░░░░░░░░ 120 and hovers down ░░░░░░░░ 266 How do we ░░░░░░░░ about the growthiest companies ░░░░░░░░ we thing about a ░░░░░░░░ rate environment Let me ░░░░░░░░ you back here The ░░░░░░░░ environment comes back to ░░░░░░░░ we started The inflationary ░░░░░░░░ I think what caught ░░░░░░░░ eye is when you ░░░░░░░░ a two year breakeven ░░░░░░░░ is record highs You ░░░░░░░░ still getting anchoring 30 ░░░░░░░░ inflation break out on ░░░░░░░░ horizon Confident you can ░░░░░░░░ long term inflation anchored ░░░░░░░░ the records we are ░░░░░░░░ in to your breakevens ░░░░░░░░ Taylor to your point ░░░░░░░░ breakeven market is pricing ░░░░░░░░ transitory environments even one ░░░░░░░░ your breakevens significantly lower ░░░░░░░░ we have had CPI ░░░░░░░░ 5 2 above 6 ░░░░░░░░ above 7 and the ░░░░░░░░ is downward sloping the ░░░░░░░░ out you go The ░░░░░░░░ market is pricing in ░░░░░░░░ in the transitory thing ░░░░░░░░ will abate over time ░░░░░░░░ opportunity for investors is ░░░░░░░░ what you think will ░░░░░░░░ It s more looking ░░░░░░░░ priced in In every ░░░░░░░░ it is about buying ░░░░░░░░ and selling high Long ░░░░░░░░ inflation expectations are not ░░░░░░░░ The market believes the ░░░░░░░░ will stop this inflationary ░░░░░░░░ with the rate hikes ░░░░░░░░ meanwhilee we continue to ░░░░░░░░ the narrative about Janet ░░░░░░░░ talking about whether there ░░░░░░░░ be on the U ░░░░░░░░ trajectory from the war ░░░░░░░░ Russia in Ukraine They ░░░░░░░░ t expect a major ░░░░░░░░ so far To circle ░░░░░░░░ to volatility and something ░░░░░░░░ are so focused on ░░░░░░░░ inflation having hedging are ░░░░░░░░ dramatically changing their response ░░░░░░░░ what has happened the ░░░░░░░░ couple of days Nancy ░░░░░░░░ phones have been ringing ░░░░░░░░ the hook with the ░░░░░░░░ etf The administration it ░░░░░░░░ unfortunate because it is ░░░░░░░░ breadbasket of the world ░░░░░░░░ you see a spike ░░░░░░░░ energy prices because of ░░░░░░░░ s exports It is ░░░░░░░░ concern but experts are ░░░░░░░░ for long volatility as ░░░░░░░░ as potential inflation exposure ░░░░░░░░ these uncertain times We ░░░░░░░░ our thing to pick ░░░░░░░░ the investor interest It ░░░░░░░░ definitely not an expensive ░░░░░░░░ for inflation expectations because ░░░░░░░░ market does not really ░░░░░░░░ those priced in It ░░░░░░░░ something that will stick ░░░░░░░░ Caroline it is great ░░░░░░░░ catch up with you ░░░░░░░░ in cio of quadratic ░░░░░░░░ management Phones ringing off ░░░░░░░░ hook We have had ░░░░░░░░ market that has completely ░░░░░░░░ yesterday Romaine it is ░░░░░░░░ to see as we ░░░░░░░░ some key data on ░░░░░░░░ with the jobs report ░░░░░░░░ report next week and ░░░░░░░░ the Fed meeting in ░░░░░░░░ weeks Taylor the two ░░░░░░░░ breakevens are unbelievable 4 ░░░░░░░░ we have never seen ░░░░░░░░ before Romaine with regards ░░░░░░░░ automobiles the treasury market ░░░░░░░░ not back to where ░░░░░░░░ was We are moving ░░░░░░░░ to the closing bell ░░░░░░░░ have our eyes on ░░░░░░░░ equity market Full market ░░░░░░░░ as always as we ░░░░░░░░ you to the bell ░░░░░░░░ beyond Announcer beyond the ░░░░░░░░ bloomberg s comprehensive cross ░░░░░░░░ coverage of the U ░░░░░░░░ market close starts right ░░░░░░░░ Romaine we are two ░░░░░░░░ away from the end ░░░░░░░░ the trading day Romaine ░░░░░░░░ Caroline hyde Taylor riggs ░░░░░░░░ you down to the ░░░░░░░░ bell It is our ░░░░░░░░ simulcast Tim throne s ░░░░░░░░ Tim Stenovec RUSH TRANSCRIPT ░░░░░░░░ stand by What a ░░░░░░░░ day it makes We ░░░░░░░░ to refocus on what ░░░░░░░░ central bank might look ░░░░░░░░ 2 8 up on ░░░░░░░░ small packs caps The ░░░░░░░░ elevated but as we ░░░░░░░░ at geopolitics and the ░░░░░░░░ on the other we ░░░░░░░░ crude continuing to push ░░░░░░░░ 8 2 on crude ░░░░░░░░ see the bloomberg commodity ░░░░░░░░ at noon highs She ░░░░░░░░ also portfolio manager for ░░░░░░░░ etf We March toward ░░░░░░░░ market close and talk ░░░░░░░░ lot about volatility in ░░░░░░░░ market What do you ░░░░░░░░ with continuing to experience ░░░░░░░░ think it works on ░░░░░░░░ sides up and down ░░░░░░░░ is a very opportune ░░░░░░░░ to think about non ░░░░░░░░ assets Historically volatility as ░░░░░░░░ and there is lots ░░░░░░░░ different types of volatility ░░░░░░░░ it is the oil ░░░░░░░░ rates market equities anything ░░░░░░░░ the options market has ░░░░░░░░ bond market Options are ░░░░░░░░ kleenex versus the tissue ░░░░░░░░ is the same thing ░░░░░░░░ I am curious about ░░░░░░░░ they you view what ░░░░░░░░ happening now as good ░░░░░░░░ lack of a better ░░░░░░░░ Obviously I feel my ░░░░░░░░ goes out to those ░░░░░░░░ Ukraine and the fight ░░░░░░░░ freedom and safety I ░░░░░░░░ t think it is ░░░░░░░░ ball It is a ░░░░░░░░ that whenever anyone is ░░░░░░░░ about something happening in ░░░░░░░░ fut ure it is ░░░░░░░░ unexpected that surprises the ░░░░░░░░ like this environment or ░░░░░░░░ expectations or things out ░░░░░░░░ p oeple s control ░░░░░░░░ cannot really time window ░░░░░░░░ especially in The fixed ░░░░░░░░ side it is something ░░░░░░░░ should have as part ░░░░░░░░ a diversified asset allocation ░░░░░░░░ do you feel nervous ░░░░░░░░ you get big types ░░░░░░░░ rallies maybe with a ░░░░░░░░ handle What does that ░░░░░░░░ with you Nancy this ░░░░░░░░ uncharted territory We have ░░░░░░░░ quantitative easing and right ░░░░░░░░ the Fed is tapering ░░░░░░░░ they are still buying ░░░░░░░░ We have not experienced ░░░░░░░░ injection let alone balance ░░░░░░░░ reduction rolling off It ░░░░░░░░ good for investors to ░░░░░░░░ prepared for more volatility ░░░░░░░░ in the bond market ░░░░░░░░ we have never had ░░░░░░░░ before Caroline it appears ░░░░░░░░ be repricing that an ░░░░░░░░ we are in conversation ░░░░░░░░ Nancy Davis founder of ░░░░░░░░ capital management We look ░░░░░░░░ the equity markets 18 ░░░░░░░░ points 17 on the ░░░░░░░░ 1 5 to one ░░░░░░░░ two year yield Caroline ░░░░░░░░ kind of day once ░░░░░░░░ We take you to ░░░░░░░░ closing bell 15 minutes ░░░░░░░░ close This is bloomberg ░░░░░░░░ this is count onto ░░░░░░░░ close You guys are ░░░░░░░░ finance jokes again Meanwhile ░░░░░░░░ s look at finance ░░░░░░░░ are you Let s ░░░░░░░░ at what happened with ░░░░░░░░ we are experiencing in ░░░░░░░░ market We are actually ░░░░░░░░ after the ice with ░░░░░░░░ and across the board ░░░░░░░░ are down Caroline still ░░░░░░░░ off the highs of ░░░░░░░░ we were a couple ░░░░░░░░ months ago hereby you ░░░░░░░░ see this is broad ░░░░░░░░ more than 90 of ░░░░░░░░ S P higher on ░░░░░░░░ day Bank stops stocks ░░░░░░░░ 4 Transports and energy ░░░░░░░░ a good day Actually ░░░░░░░░ a pretty decent rally ░░░░░░░░ a lot of those ░░░░░░░░ have a lot of ░░░░░░░░ been on the idea ░░░░░░░░ consumer spending Taylor Nancy ░░░░░░░░ founder and cio of ░░░░░░░░ capital management still with ░░░░░░░░ We hinted earlier about ░░░░░░░░ about bonds so let ░░░░░░░░ go there We got ░░░░░░░░ sense that the Federal ░░░░░░░░ is continuing with rate ░░░░░░░░ They are really serious ░░░░░░░░ attacking inflation despite maybe ░░░░░░░░ economic slowdown we could ░░░░░░░░ given geopolitical events Taylor ░░░░░░░░ is definitely a push ░░░░░░░░ your point We have ░░░░░░░░ events and domestic inflation ░░░░░░░░ do have inflation in ░░░░░░░░ of realizing a question ░░░░░░░░ whether rate hikes will ░░░░░░░░ and whether that is ░░░░░░░░ to stop the inflation ░░░░░░░░ are seeing in everyday ░░░░░░░░ Caroline stagflation What do ░░░░░░░░ make of it Nancy ░░░░░░░░ and bonds are down ░░░░░░░░ to date Powell has ░░░░░░░░ of squashed the fears ░░░░░░░░ we are having a ░░░░░░░░ equity down day If ░░░░░░░░ look year to date ░░░░░░░░ and bonds are falling ░░░░░░░░ That s stagflation so ░░░░░░░░ is hard to say ░░░░░░░░ now there is concern ░░░░░░░░ people are going to ░░░░░░░░ to a tightening cycle ░░░░░░░░ some degree or another ░░░░░░░░ oil prices at levels ░░░░░░░░ have not seen in ░░░░░░░░ and other commodity prices ░░░░░░░░ sale If the growth ░░░░░░░░ t hold up and ░░░░░░░░ find yourself in a ░░░░░░░░ something we will talk ░░░░░░░░ how does this change ░░░░░░░░ Nancy investors need to ░░░░░░░░ the 60 40 portfolio ░░░░░░░░ have the rest of ░░░░░░░░ assets included in the ░░░░░░░░ It is not where ░░░░░░░░ stock curves are It ░░░░░░░░ about where the borrowed ░░░░░░░░ are and oil markets ░░░░░░░░ vix market the rate ░░░░░░░░ all these markets mean ░░░░░░░░ stock p rices are ░░░░░░░░ than the future prices ░░░░░░░░ low growth environment is ░░░░░░░░ priced into markets and ░░░░░░░░ is an opportune time ░░░░░░░░ take advantage of what ░░░░░░░░ expected in the future ░░░░░░░░ today Powell has been ░░░░░░░░ successful and is convinced ░░░░░░░░ rates market they will ░░░░░░░░ hiking It is priced ░░░░░░░░ romaine You can see ░░░░░░░░ reflected in the price ░░░░░░░░ today with the yield ░░░░░░░░ 16 basis points the ░░░░░░░░ move higher on the ░░░░░░░░ year going back to ░░░░░░░░ pandemic in March 2020 ░░░░░░░░ conversation with Nancy Davis ░░░░░░░░ quadratic capital management she ░░░░░░░░ sticking with us as ░░░░░░░░ count you down to ░░░░░░░░ closing bell six minutes ░░░░░░░░ We will get back ░░░░░░░░ Nancy in a moment ░░░░░░░░ we talk a lot ░░░░░░░░ yields higher today candidates ░░░░░░░░ back into focus the ░░░░░░░░ owthiest company the revaluation ░░░░░░░░ have seen on A ░░░░░░░░ like this The stock ░░░░░░░░ up 1 2 we ░░░░░░░░ get corporate results the ░░░░░░░░ results after the bell ░░░░░░░░ million earnings for share ░░░░░░░░ a gain of three ░░░░░░░░ but this has been ░░░░░░░░ big lesson with the ░░░░░░░░ that went up to ░░░░░░░░ from 120 and hovers ░░░░░░░░ to 266 How do ░░░░░░░░ think about the growthiest ░░░░░░░░ when we thing about ░░░░░░░░ rising rate environment Let ░░░░░░░░ bring you back here ░░░░░░░░ rate environment comes back ░░░░░░░░ where we started The ░░░░░░░░ environment I think what ░░░░░░░░ my eye is when ░░░░░░░░ have a two year ░░░░░░░░ that is record highs ░░░░░░░░ re still getting anchoring ░░░░░░░░ year inflation break out ░░░░░░░░ the horizon Confident you ░░░░░░░░ keep long term inflation ░░░░░░░░ despite the records we ░░░░░░░░ seeing in to your ░░░░░░░░ Nancy Taylor to your ░░░░░░░░ the breakeven market is ░░░░░░░░ in transitory environments even ░░░░░░░░ one your breakevens significantly ░░░░░░░░ where we have had ░░░░░░░░ up 5 2 above ░░░░░░░░ 2 above 7 and ░░░░░░░░ curve is downward sloping ░░░░░░░░ further out you go ░░░░░░░░ rates market is pricing ░░░░░░░░ inflation in the transitory ░░░░░░░░ It will abate over ░░░░░░░░ The opportunity for investors ░░░░░░░░ not what you think ░░░░░░░░ happen It s more ░░░░░░░░ was priced in In ░░░░░░░░ market it is about ░░░░░░░░ low and selling high ░░░░░░░░ term inflation expectations are ░░░░░░░░ high The market believes ░░░░░░░░ Fed will stop this ░░░░░░░░ burden with the rate ░░░░░░░░ Caroline meanwhilee we continue ░░░░░░░░ have the narrative about ░░░░░░░░ Yellen talking about whether ░░░░░░░░ will be on the ░░░░░░░░ S trajectory from the ░░░░░░░░ on Russia in Ukraine ░░░░░░░░ don t expect a ░░░░░░░░ impact so far To ░░░░░░░░ back to volatility and ░░░░░░░░ you are so focused ░░░░░░░░ with inflation having hedging ░░░░░░░░ people dramatically changing their ░░░░░░░░ to what has happened ░░░░░░░░ last couple of days ░░░░░░░░ our phones have been ░░░░░░░░ off the hook with ░░░░░░░░ hydrology etf The administration ░░░░░░░░ is unfortunate because it ░░░░░░░░ the breadbasket of the ░░░░░░░░ and you see a ░░░░░░░░ in energy prices because ░░░░░░░░ Russia s exports It ░░░░░░░░ a concern but experts ░░░░░░░░ looking for long volatility ░░░░░░░░ well as potential inflation ░░░░░░░░ during these uncertain times ░░░░░░░░ do our thing to ░░░░░░░░ up the investor interest ░░░░░░░░ s definitely not an ░░░░░░░░ time for inflation expectations ░░░░░░░░ the market does not ░░░░░░░░ have those priced in ░░░░░░░░ is something that will ░░░░░░░░ around Caroline it is ░░░░░░░░ to catch up with ░░░░░░░░ Founder in cio of ░░░░░░░░ capital management Phones ringing ░░░░░░░░ the hook We have ░░░░░░░░ a market that has ░░░░░░░░ reversed yesterday Romaine it ░░░░░░░░ interesting to see as ░░░░░░░░ get some key data ░░░░░░░░ Friday with the jobs ░░░░░░░░ inflations report next week ░░░░░░░░ then the Fed meeting ░░░░░░░░ two weeks Taylor the ░░░░░░░░ year breakevens are unbelievable ░░░░░░░░ 3 we have never ░░░░░░░░ that before Romaine with ░░░░░░░░ to automobiles the treasury ░░░░░░░░ is not back to ░░░░░░░░ it was We are ░░░░░░░░ close to the closing ░░░░░░░░ We have our eyes ░░░░░░░░ the equity market Full ░░░░░░░░ coverage as always as ░░░░░░░░ take you to the ░░░░░░░░ and beyond Announcer beyond ░░░░░░░░ bell bloomberg s comprehensive ░░░░░░░░ platform coverage of the ░░░░░░░░ S market close starts ░░░░░░░░ now Romaine we are ░░░░░░░░ minutes away from the ░░░░░░░░ of the trading day ░░░░░░░░ bostick Caroline hyde Taylor ░░░░░░░░ counting you down to ░░░░░░░░ closing bell It is ░░░░░░░░ global simulcast Tim throne ░░░░░░░░ make —Tim Stenovec,