Phenomenal Time To Be Investor, Not Consumer: Amoroso

On Bloomberg Money, I want you to talk about the personal finance. I look at you, Anastasia. You come to America from Eastern Europe, and you come over here. You're in New Mexico. You're not in some fancy school in New York City or name the city. You're in New Mexico. There's a huge body of America that's not participating in the conversation we're having here about earnings and future earnings, PEs, and fancy ratios. Consumer sentiment out hours ago. Yeah. It's terrible. How do we dovetail our investor prosperity into an America that feels flat on their back? I don't understand how those two meet. I I mean, it's such a huge disconnect right now. And, look, you know, everywhere you look, consumers do feel depressed about their personal finances, and I can understand why because, you know, everywhere you go, the average selling prices are moving higher. And what I've sort of realized just traveling, you know, this week and just this year is that we're in an environment where consumer demand is actually quite strong. We feel like we're breaking even as consumers, but we're still doing okay. So the demand side of the equation is fine. But what's happened also is that we are capacity constrained, whether it's the travel industry, whether it's the leisure hospitality, whether it's the industrials industry. So as a result, corporations have pricing power. They're using that pricing power, which is why we've seen those record earnings. So the bottom line, Tom, it is not a phenomenal time to be a consumer. It's sort of an okay or maybe a bad time to be a consumer, but it's actually a phenomenal time, a very solid time to be an investor. Because if you can invest in the companies that are solving those capacity bottlenecks Right. And they're delivering record earnings, in the meantime, that's the way to, I think, even out the playing field and to have those consumers become investors. Anastasia, on Bloomberg Money, we'd like to ask our guests how you are investing, how you've changed your approach to investing given everything that's happening right now. What would surprise people about the way that you think about investing personally? Well, I don't know if that's surprising necessarily, but but I do invest across all the various asset classes. You know, of course, you know, the core pillar of the portfolio still has to be that S and P exposure, the Nasdaq exposure, the AI trade that absolutely has to be a part private assets too? Oh, of course. Yeah. Private assets. But I think... I don't think that would be surprising given that I do work for a private markets company, but I do extend the universe from public to private, and I think of it as a continuum. So if you're going to invest in equities, make it public equities, but also make it private. If you're going to invest in fixed income, look. Bonds are great. High grade is great. You know, treasuries are becoming greater. But at the same time, I'm quite, you know, attracted to private credit, and the fact is that you have that substantial yield that you can earn there. I wanna bring up this chart. It is my Bill Gross chart. I used it first with William Gross many, many years ago. It is a ten year yield back before anybody in this room besides me was born. It's the great moderation from the Volker years down, and you see the surge up here in inflation and in yield that's been extraordinary. What do you say to the crew addicted to price up and the low yields that we had for five, six, seven years? Well, that's not the future. That's what I would say to that. And, look. Bygone is the era of those lower yields and the term premium that has been suppressed. You know, if you dissect the move higher in the ten year treasury yield, some of it has to do with sticky inflation. Some of it has to do with robust growth, which is great, and some of it has to do with the fact that the bond market has more uncertainty about the trajectory of the budget deficit and just growth, globally. So I think we have to get used to the fact, Tom, that the term premium is going to revert to the historical norms, and that means that the ten year treasury is not going to be at 2%. It is likely to hover around 5%.