DAGEN: PRESIDENT TRUMP JUST
TWEETING ON THESE MARKETS,
WRITING THIS, THE NEWS FROM THE
FINANCIAL MARKETS IS EVEN BETTER
THAN ANTICIPATED.
FOR ALL OF YOU THAT HAVE MADE A
FORTUNE IN THE MARKETS OR SEEN
YOUR 401-KS RISE BEYOND YOUR
WILDEST EXPECTATIONS MORE GOOD
NEWS IS COMING.
THAT'S A BIG PROMISE COMING FROM
THE PRESIDENT.
JOINING US NOW, CHIEF INVESTMENT
OFFICER MARK USKA.
DO YOU EXPECT LOOKING AT STOCKS
THAT THIS BULL RUN THAT WE'VE
HAD WILL CONTINUE?
>> LOOK, I THINK ANY TIME
THERE'S POSITIVE NEWS, DAGEN,
THAT MARKETS WILL REACT,
PARTICULARLY IN THESE LATE
STAGES OF THE SUMMER WHEN
EVERYBODY IS AWAY ON VACATION.
I THINK POST LABOR DAY, IT'S
GOING TO BE INTERESTING TO SEE
WHEN PEOPLE COME BACK FROM
VACATION IF THEY LOOK AT
VALUATIONS AND GET A LITTLE
NERVOUS, BUT AS LONG AS THEY
STABLE.
DAGEN: YOU WOULD PUT NEW MONEY
TO WORK IN STOCKS RIGHT NOW?
>> NO, I WOULDN'T DO THAT AT
ALL.
WE THINK STOCKS ARE VERY
OVER-VALUED.
WE'VE BEEN LIGHTENING UP AND
TRYING TO GET HEDGED AND
FOCUSING ON DIFFERENT AREAS.
BUT, YEAH, PROBABLY WOULDN'T PUT
NEW MONEY.
I WOULDN'T BE SO NERVOUS IF WE T
I WOULDN'T BE SO NERVOUS IF WE A
I WOULDN'T BE SO NERVOUS IF WE T
I WOULDN'T BE SO NERVOUS IF WE W
I WOULDN'T BE SO NERVOUS IF WE E
HAVE AN IMMINENT COLLAPSE OR
ANYTHING LIKE THAT.
>> WHAT IF WE SAW --
DAGEN: THIS IS ROBERT WOLF, BY
THE WAY.
.>> HEY, ROBERT.
>> HOW ARE YOU?
LITTLE CAUTIOUS AND MORE
DEFENSIVE AS WELL.
HOW DO YOU SEE THE ENVIRONMENT
GOING INTO RISING RATE
ENVIRONMENT, BIG DISCUSSIONS
COMING UP ON FISCAL DISCIPLINE.
WE HAVE THE BUDGET COMING UP
WHICH OBVIOUSLY WILL BE VERY
INTERESTING GOING INTO THE
NOVEMBER ELECTIONS AND SO ARE
OF THINGS THAT PEOPLE SHOULD BE
THINKING ABOUT AND BE CONCERNED
WHICH IS WHAT STOCKS ARE AT A
HIGHER DISCOUNT RATE, THE VALUE
SHOULD GO DOWN, NOT UP.
AND YET THE P.E. RATIOS KEEP
PASSIVE WAVE OF MONEY -- PASSIVE
INVESTING IS DUMB.
I DON'T MEAN UNINTELLIGENT.
I MEAN IT'S RULE-BASED.
RULE-BASED STRATEGIES, THEY
CAN'T THINK.
THEY JUST HAVE TO BUY WHAT'S ON
THE LIST.
SO YOU BRING UP ANOTHER POINT
ABOUT DEFICIT SPENDING.
DEFICIT SPENDING IS BASICALLY A
WEALTH TAX ON THE MIDDLE CLASS.
AND THAT'S WHY INCOME INEQUALITY
IS THE HIGHEST IT HAS EVER BEEN
BECAUSE WE HAVE BEEN DEFICIT
SPENDING LIKE CRAZY FOR THE LAST
TWO DECADES.
THAT'S WHY WE'RE SO FOCUSED ON
BLOCK CHAIN TECHNOLOGY, BITCOIN,
CRYPTO, THOSE THINGS SOLVE THE
INCOME INEQUALITY PROBLEM WE'RE
FACING.
>> JAMES FREEMAN AND THE WALL
STREET JOURNAL.
YOU TALKED ABOUT THE DOWNSIDE
AND HIGH VALUATIONS.
IS THIS RELATED IN PART TO YOUR
EXPECTATIONS ON THE ECONOMY?
ARE YOU THINKING THAT THIS
SECOND QUARTER NUMBER DOES NOT
GET REPEATED AND THINGS REALLY
SLOW DOWN?
JUST PRICED TOO HIGH?
>> NO, JAMES, AGAIN, THIS IS FUN
THIS MORNING, YOU'RE BRINGING UP
THE BEST POINTS.
LOOK, THE ECONOMY HASN'T GROWN
ABOVE 2% FOR SIX YEARS.
WE HAD ONE QUARTER, THAT WAS
JUICED BY THE TAX DEFORM ACT AS
I CALL IT.
IT'S NOT GOING TO BE REPEATED IN
THE THIRD AND FOURTH QUARTER.
IT'S JUST NOT.
GDP, NOMINAL GDP IS REALLY
SIMPLE.
IT'S PRODUCTIVITY PLUS WORKING
AGE POPULATION GROWTH.
WE KNOW WORKING AGE POPULATION
GROWTH OVER THE NEXT 10 YEARS IS
GOING TO BE SUB-1%.
WE KNOW PRODUCTIVITY IS GOING TO
BE SUB-1%.
TURNS OUT, 65 TO 85-YEAR-OLD
PEOPLE ARE NOT AS PRODUCTIVE AS
45 TO 65-YEAR-OLD PEOPLE.
WHO WOULD HAVE THUNK IT.
>> THAT'S AGEISM.
DAGEN: I WANT TO GET TO --
>> IT DOESN'T MEAN THEY'RE NOT
GOOD PEOPLE.
IT MEANS PRODUCTIVITY IS --
DAGEN: I WANT TO GET TO THIS,
YOU JOINED FORCES WITH BIT WISE,
LAUNCHING AN INTUESDAYAL FUND --
INSTITUTIONAL FUND FOR
CRYPTOCURRENCY.
TELL US ABOUT IT.
WOULD YOU EVENTUALLY LAUNCH
SOMETHING FOR RETAIL.
>> LOOK, WE STARTED GETTING
INVOLVED IN THE PICK.
PICS AND
SHOVELS, PROVIDING
INFRASTRUCTURE FOR
CRYPTOCURRENCY.
WE HAD INSTITUTIONAL INVESTORS
COME TO US, SAYING WE WOULD LIKE
TO GET EXPOSURE TO CRYPTO, TO
GET OFF ZERO WHICH IS THE
ALLOCATION MOST PEOPLE HAVE.
WE SEARCHED FOR WORLD CLASS
PARTNER.
WE FOUND THE BIT WISE TEAM IN
CALIFORNIA.
WE FORMED A DIGITAL ASSET INDEX
FUND THAT WE THINK CAN SOLVE THE
PROBLEM FOR INSTITUTIONS THAT
WANT TO GET EXPOSURE.
WE'VE BEEN DOING INSTITUTIONAL
INVESTING FOR DECADES.
WE THINK THEIR TECHNOLOGY AND
EXPERTISE IN HANDLING AND
MANAGING THE CRYPTO IS A GREAT
COMBINATION.
IN TERMS OF A SOLUTION FOR
RETAIL, WE CLEARLY WOULD LIKE TO
MOVE IN THAT DIRECTION AS WELL.
WE'RE GOING TO WORK CLOSELY WITH
THE SECTOR OF THE MARKET LIKE
OTHER ALTERNATIVE INVESTMENTS.
HOPEFULLY WE'LL GET THERE TOO.