UNCOMPETITIVE CORPORATE TAXES
AND BE A COMPETITIVE NATION IS A
LITTLE CRAZY.
MARIA: JOINING ME NOW IS THE
CEO OF TALAMUS.
THANK YOU FOR BEING HERE.
>> GREAT TO SEE YOU, MARIA.
MARIA: SO WHAT DO YOU THINK
ABOUT ALL OF THIS SPENDING AND
THIS TAX INCREASE PLANS THAT WE
ARE WAITING ON, THE CAPITAL
GAINS TAX FOR THE HIGHEST
EARNERS EXPECTED TO GO ALL THE
WAY UP TO 43.4% FROM THE CURRENT
20%, JOHN.
WHAT KIND OF IMPACT WOULD YOU
EXPECT?
>> LISTEN, MARIA, I AGREE FULLY
WITH JAMIE DIMON.
THIS WHOLE FISCAL POLICY
UNCERTAINTY WHICH INCLUDES
POTENTIAL FOR TAX INCREASES AND
MORE REGULATION, IT’S FUELING
THIS VOLT VOLATILITY AND ABSOLUT
NEGATIVE FOR LONG-TERM STRATEGIC
GROWTH.
WE’VE SEEN HOW THE OPPOSITE
HELPS AND STIMULATES THIS
ECONOMY WITH THE PREVIOUS
ADMINISTRATION.
WHY DO PEOPLE IF YOU TURN
EVERYTHING AROUND AND
OVER-REGULATE, OVER-TAX AND
CREATE MORE -- IT’S GOING TO
HURT THE ECONOMY TREMENDOUSLY
AND THAT’S SOMETHING THAT’S
CREATING SOME OF THE VOLATILITY
GOING FORWARD HERE.
MARIA: T IT’S INCREDIBLE TO ME
THAT NOT A DOLLAR HAS BEEN SPENT
OF THESE LAST TWO PLANS AND
WE’VE GOT AN ECONOMY THAT IS
EXPECTED TO BE UP 9% IN 2021.
THE ATLANTA FEDERAL RESERVE
EXPECTING GROWTH IN THE SECOND
QUARTER OF 13%.
SO WHY ARE WE THROWING ALL THIS
MONEY AT AN ECONOMY THAT IS
DOING JUST FINE ON ITS OWN?
>> THAT’S THE QUESTION THAT WE
HAVE TO ASK.
AND WE’RE GOING TO HAVE TO PAY
FOR IT LATER ON.
OF COURSE THE VACCINE ROLLOUTS,
THE POSITIVE ECONOMIC DATA, THE
FISCAL STIMULUS, THE
ACCOMODATIVE MONETARY POLICY,
THAT IS HELPING.
BUT WHAT HAPPENS WITH THIS
UNCERTAINTY GOING FORWARD?
ONE THING THAT WE TELL OUR
INVESTORS IS THAT YOU HAVE TO BE
IN THE MARKET, DESPITE THE
VOLATILITY, DESPITE WHAT MIGHT
BE COMING IN THE FUTURE BECAUSE
IF YOU’RE NOT, YOU’RE GOING TO
MISS IT AND IT’S HARD TO TIME
IT.
EVEN PROFESSIONALS ARE VERY HARD
TO TIME.
MARIA, THERE’S AN INTERESTING
THAT STATISTIC I WANT TO SHARE.
IN 2020 IF YOU WERE INVESTED IN
THE S&P INDEX, EVERY SINGLE DAY
OF THE YEAR, YOU WOULD HAVE HAD
A RETURN OF 18%.
NOW, IF YOU WERE NOT INVESTED
AND TRIED TO TIME THE MARKET,
JUST FIVE OF THE BEST DAYS OF
THE S&P, SO IF YOU WERE INVESTED
FOR 360 BUT NOT THOSE FIVE DAYS,
-- THE BEST FIVE DAYS -- YOU
WOULD HAVE HAD A RETURN OF
NEGATIVE 18%.
IT’S VERY TOUGH TO TIME THE
MARKETS.
YOU NEED TO BE IN THEM.
IT’S HARD TO PICK.
USUALLY THE REBOUNDS ARE RIGHT
AFTER A REALLY BAD DAY.
SO WE TELL OUR CUSTOMERS BE IN
PRODUCTS THAT CAN NAVIGATE THIS
FUTURE UNCERTAINTY THAT WE HAVE,
PRODUCTS LIKE ARE MARKET CAN
NEUTRAL, HEDGED EQUITY SO YOU
CAN GET SOME OF THE UPSIDE BUT
PROTECT YOURSELF ON THE
DOWNSIDE.
A LOT OF OUR CONVERTIBLES HAVE
DONE VERY, VERY WELL DURING THIS
TIME.
MARIA: LOOK, WE’RE ALL LOOKING
FOR YIELD AND SOME KIND OF A
RETURN GIVEN THE FACT THAT THE
FEDERAL RESERVE IS KEEPING
INTEREST RATES AT ROCK BOTTOM
LEVELS, PROBABLY GOING TO DO SO
UNTIL 2024.
WE’RE NOT MAKING MONEY IN THE
SAVINGS ACCOUNTS.
THE ONLY PLACE TO MAKE MONEY
REALLY IS IN EQUITIES, COMPANIES
THAT PAY DIVIDENDS OF.
WHAT ABOUT THE BACKDROP?
HOW IMPORTANT IS THIS FOR YOUR
CLIENTS AND WHAT THEY’RE LOOKING
AT IN TERMS OF ECONOMIC GROWTH
AND ITS IMPACT?
WE’VE GOT THE APRIL JOBS REPORT
COMING OUT IN ABOUT AN HOUR,
LESS THAN AN HOUR.
ECONOMISTS ARE EXPECTING NEARLY
A MILLION JOBS ADDED TO THE
ECONOMY IN THE LAST MONTH.
THE UNEMPLOYMENT T RATE MOVING
LOWER TO 5.8%.
WHAT ARE YOU SEEING FROM YOUR
STANDPOINT IN TERMS OF THE LABOR
MARKET AND THE ECONOMY?
TOP STORY IN THE JOURNAL TODAY
THAT BUSINESSES CANNOT FIND
WORKERS TO GET BACK ON THE JOB.
>> IT’S TOUGH.
IT’S TOUGH.
A LOT OF PEOPLE, A, THEY WANT TO
WORK FROM HOME.
A LOT OF PEOPLE THE JOBS --
WE’LL SEE TODAY THE NUMBER’S
GOING TO BE VERY STRONG.
EMPLOYMENT IS COMING BACK.
WE’RE GOING TO SEE A HUGE
REOPENING TREND WHICH IS GOING
TO MAKE IT EVEN WORSE.
THEREFORE, WE CLEARLY NEED, LIKE
YOU SAID, MARIA, YOU’RE NOT
GETTING ANY RETURNS IN FIXED
INCOME.
YOU NEED TO BE INVOLVED IN THE
EQUITY MARKETS BUT BE SMART
ABOUT IT.
THAT’S WHY SOME THE STRATEGIES
ARE REALLY IMPORTANT TO PROTECT
YOURSELF GOING FORWARD.
YOU HAVE TO GET RETURNS IN THE
EQUITY MARKET.
YOU CAN’T GET THEM IN THE FIXED
INCOME MARKET RIGHT NOW WITH
INTEREST RATES REALLY LOW.
ALTHOUGH WE ARE STARTING TO SEE
SOME INFLATION, RIGHT?
WE’RE STARTING TO SEE IT IN THE
GROCERY STORES.
WE’RE STARTING TO SEE IT IN THE
GAS PUMP AS YOU GO THERE AND
YOU’RE STARTING TO SEE IT IN
HOME BUILDING.
LUMBER HAS GONE THROUGH THE
ROOF.
WE ALSO SEE IF SOME OF THE TAXES
AND FISCAL POLICIES GET
INSERTED, WE’LL SEE THE ECONOMY
GO DOWN TREMENDOUSLY AND WE’LL
SEE A FLIGHT TO QUALITY AND I
THINK THAT WILL BRING INTEREST
RATES BACK DOWN AGAIN.
SO I’M NOT REALLY WORRIED OF
RUN-AWAY INTEREST RATES.
MARIA: DO YOU FEEL LIKE THE
REOPENING IS IN PLACE?
I KNOW CALAMOS IS EXPANDING
PRESENCE IN CHICAGO, HAVE YOU A
NEW OFFICE IN THE FULTON MARKET
AREA.
ARE PEOPLE BACK?
TELL US ABOUT THE GROWTH, WHY
YOU CHOSE THAT AREA AND WHAT
YOU’RE SEEING ON THE GROUND.
>> SURE.
I APPRECIATE IT.
WE’RE GROWING IN CHICAGO, WE’RE
GROWING IN NEW YORK, WE’RE
GROWING IN MIAMI.
OUR BUSINESS EVEN PRE-COVID HAS
BEEN GROWING REALLY WELL.
WE’VE DOUBLED OUR AUM IN THE
LAST FOUR YEARS, WE’RE AT OVER
$37.5 BILLION.
AND COVID HAS NOT STOPPED US.
WE’VE BEEN VERY, VERY FORTUNATE
FOR THAT.
WE PICKED CHICAGO AS AN
EXTENSION OF OUR HEADQUARTERS.
IT’S A BUST BUS -- BUSTLING
NEIGHBORHOOD.
WE WANT TO RECRUIT YOUNGER
PEOPLE COMING OUT OF BUSINESS
SCHOOL.
IF YOU WANT TO LIVE IN A CITY
THAT’S A VIBRANT AREA, THAT’S
HAPPENING, THAT’S HOT, WE HAVE
THAT OPPORTUNITY NOW.
IF WE WANT TO LIVE OUT IN THE
SUBURBS TO RAISE A FAMILY, THEY
HAVE THAT OPPORTUNITY NOW.
SO WE CAN ACCOMMODATE THAT.
AND SO THINK WE MIGHT HAVE A
DIFFERENT WAY AS WE GO ON AND BE
A LITTLE BIT MORE FLEXIBLE, BUT
PEOPLE NEED TO BE IN THE
OFFICES.
THAT’S WHERE YOU’LL SEE THE
BUSINESS GET DONE.
IT’S HARD TO TRAIN YOUNGER
PEOPLE.
IT’S HARD TO REALLY GET A GRACE
PULSE OF YOUR CLIENTS, WHAT
THEY’RE LOOKING FOR, WHAT
THEY’RE EXPECTING, WHAT YOU’RE
DOING RIGHT, WHAT YOU’RE DOING
WRONG.
YOU NEED THE HUMAN CONTACT AND
ABLE TO DO THAT AND THE PEOPLE
THAT ARE DOING THAT IN OUR
PEERS, THAT’S WHY YOU’RE
STARTING TO SEE A LOT OF THEM
COME INTO THE OFFICE EARLIER
THAN EXPECTED, IN JUNE, IN JULY,
AND I THINK THROUGH SEPTEMBER
WE’RE GOING TO SEE PRETTY MUCH
EVERYBODY COMING INTO THE
OFFICES.
MARIA: ALL RIGHT.
WE’LL LEAVE IT THERE.
WE’LL BE WATCHING, JOHN.
GREAT TO CATCH UP WITH YOU.
COME BACK SOON.
THANK YOU SO MUCH.