The Compound and Friends
00:06:34 · Josh Brown, Daniel Clifton
[00:06:34] S2: I think the industry I think the industry has done one of the one of the most extraordinarily bad Yep. Jobs Yep. Of explaining Yes. How this technology... Like, how do you get from point A to point D Yep. Where people's lives improve? Absolutely. It's almost as if they haven't even tried. [00:06:54] S1: Yeah. So this is the whole basis of the beginning of the year for us, because I looked at it and I said to myself, You have to lay the groundwork down. And I'm going to give you an example. Gilead, a pharmaceutical company, cured hepatitis C. They cured it. The system is not built for cures. They are going to save Medicare hundreds of billions of dollars. They forgot to go tell everybody in Washington. Well, know what? The managed care had to pay for it. The hospitals had to pay for State governments had to pay for it. They were like, This is an outrage. We're paying $80,000 for this drug. Well, you know what? They saved hundreds of billions of dollars for the federal government, and if not at the table, you're on the menu in Washington. And the tech guys were like, oh, we're creating jobs. We're good. You know what? The environmentalists hate this because it's such an expansion
00:07:38 · Josh Brown, Daniel Clifton, Michael Batnick
[00:07:38] S2: of energy. Backing up, though Yeah. And we're gonna we're gonna do all this on the show. We're... Just like to set the table. Yeah. I was... I just came from the New York Stock Exchange. Yeah. The Nasdaq's down 5%. You have companies like NVIDIA down 10%. Yep. SanDisk, another 20%. I think it's... Personally, it's it's the right reaction. It's overdone in the sense that there is a contingent of Middle America that works construction jobs. Yes. The construction unions like the data It's keeping their membership roles fat Yep. And keeping people working. I don't envision a scenario where a Democratic governor comes in. They might say moratorium on new construction, but they're not saying close down the work site, send all the workers home. [00:08:26] S1: Correct. [00:08:26] S2: But that's the way... The market is acting as though, like, alright. Well, no no more Internet. It's it's a little overdone. [00:08:34] S0: So, Dan, let me jump in just with a quote for you to chew on. Yeah. So this is from Meta's president. Yeah. She said that this morning. I'm sure you saw this. Yeah. She said, We did have a governor that won last night who did make data centers a big part of their platform say, As soon as we get past the inauguration, let's meet because we don't want to lose this investment in our town. We don't want these jobs to go elsewhere. [00:08:54] S2: Yeah. [00:08:55] S1: So let me let me just take one step back. [00:08:57] S2: Well, let me take one step back. Yep. [00:08:59] S1: Start the show. Alright. [00:09:00] S2: This guy's on fire. Yes.
00:09:00 · Josh Brown, Michael Batnick
[00:09:00] S2: This guy's on fire. Yes. [00:09:02] S0: Let's go. The Compound and Friends. Oh my god. Ad[00:09:09] S2: This podcast is sponsored by Nomura Asset Management. Markets shift in ways that aren't always visible. Over the course of a century of putting clients first, Nomura has developed the global expertise and local insight to help them meet changing currents with a deeper view. Nomura's growing ETF platform is a direct reflection of this. Nomura offers high conviction, actively managed ETF strategies across regions, sectors, and asset classes to help investors navigate complex markets with confidence. To learn more about Nomura's ETF offerings, including prospectus information, visit nomuraassetmanagement.com. Investing involves risk, principal loss is possible. The Nomura Funds exchange traded funds are distributed by Foreside Financial Services LLC. Foreside Financial Services LLC is not affiliated with any Nomura entity, including Delaware Management Company and Delaware Distributors LP.
00:10:14 · Michael Batnick, Josh Brown
Ad[00:10:14] S0: This episode is brought to you by Federated Hermes. Active ETFs are changing the way portfolios are built, giving advisors more flexibility for their clients. But not all ETFs are built the same. Federated Hermes puts the investments in their active ETFs through a ruthless vetting process, gaming out a wide range of market scenarios so only the strongest survive. The result? A suite of 12 active ETFs spanning the full stock and bond market. Whether you use them as core building blocks or tactical allocations, you'll get the strategies you want in a convenient ETF wrapper. Simply put, Federated Hermes has the active ETFs to help you build portfolios designed to last because they've been vetted for it. Explore the full lineup at federatedhermes.com. ETFs are subject to risk and may lose value. Federated Securities Corp distributor. Before investing, carefully consider the fund's investment objectives, risks, charges, and expenses. Read this and more information in the prospectus or summary prospectus available at federatedhermes.com. [00:11:27] S2: Guys are in for a huge treat today. I'm so excited. [00:11:32] S0: So we're gonna we're gonna try to [00:11:34] S2: thread the needle here today, Dan. You're gonna help us. Yeah. This is an this is an apolitical show. Absolutely. Compound and Friends, we... I don't... I almost don't even care. I... I'm moving to Boca Raton. It's it's not... None of this is gonna touch me. [00:11:48] S0: Salt of the earth.
00:11:48 · Michael Batnick, Josh Brown, Daniel Clifton
[00:11:48] S0: Salt of the earth. [00:11:49] S2: None of this will ever touch me. So I'm not political. I I believe I believe in live and let live. That's my [00:11:57] S0: He just wants lower taxes. [00:11:58] S2: And leave me the alone. [00:11:59] S1: That's my whole platform. [00:12:00] S0: Free hair plants. That's all he cares about. That's single issue voting. Hair plants. [00:12:04] S2: But we but we have to talk about politics right now because we're in a moment... We're in an unprecedented moment, I think. One of the biggest post midterm reactions of all time and now within the span of forty eight hours in both directions. I mean... So we can't avoid the impact of this, and we're so fortunate because we have Daniel Clifton here. And for those of you who didn't catch, Daniel's appearance earlier this year, he flagged all this stuff for us. And, of course, the Nasdaq was going straight up. Nobody was worried about it. And now all of a sudden, the chickens have come home to roost. Yeah. Fair? Okay. Daniel is a partner and head of policy research at Baird Strategas, where he studies how policy, elections, trade, tax, health care, and energy initiatives affect the economy and financial markets. He leads the firm's Washington Policy Research team, which has been ranked among the top policy research teams on Wall Street for eighteen consecutive years. Y'all give it [00:13:12] S0: up to the man of the hour, Dan Clifton. Thank you so much for being here. Hey. [00:13:17] S2: It's my pleasure. Who who did you vote for?
00:13:17 · Josh Brown, Daniel Clifton
[00:13:17] S2: It's my pleasure. Who who did you vote for? [00:13:21] S1: But we treat it the same way, Josh. Trying to just identify what the likely outcome is going to be, not, hey, I like this candidate or this policy. Even as we talk about data centers, right? Like, there's pros and cons. Right. And we're not rooting for anything. We just want investors to understand what the risks are and identify where those opportunities are. Okay. Hopefully, could do that. [00:13:40] S2: All right. So, let's I want to start with this. How significant is what just happened? I want to read something to you. This was on do you know Matt Stoller? [00:13:49] S1: Yeah, I do.