Curious in the last couple days if you're you know been seeing a lot of this for selling or has the volatility in the equity
markets to you appeared to be a little bit more orderly. No people are nervous. So one thank you for having me on your
show. But at the other day people are just very nervous and
everybody's trying to figure out what the Fed's going to do. I think for us what we're trying to do is just find situations
where we can get overpaid for the risk. And you know we're buying a number of fixed income instruments you know bonds.
I would tell you six months ago we're trading at 75 80 and today we're buying those same bonds somewhere around sort of 35 40
cents on the dollar. You know one situation explored technologies were buying those
bonds at 35. You've got an eleven percent love a half percent coupon. So you're making or buying around thirty five. You're
making around 33 percent current. So you know we're getting paid quite a bit
and everybody's worried as to what's going to happen with the company. We think it's fine. So I could give you examples of
these situations over and over again. But I think for us you know we're seeing a huge amount of opportunities out there.
Distress is where the opportunity is our mark which has taken some time to get to. Are you seeing that the distress we've seen
in selling maybe it before selling or not that's gone into the public markets. Has that come to an crescendo do you think yet.
We hit some sort of bottom or as a father to shoot it off now. No I think there's mortar drop. I mean I think part of it is
you know people are trying to figure out what the Fed's going to do and how high inflation gets. So you know whereas I would have
told you a week ago everybody assumed the Fed was going to raise rates at the max 50 bibs. You know now the market's telling you
that the Fed needs to raise it by 75 bibs. So I think you're going to have more selling. You're going to
have more pain. It's going to continue. It'll continue between now and the end of the year. And I think part of it is you've
got to sort of start getting involved in the market by things that you're comfortable with. Doesn't mean it's not going to get
cheaper. But I don't think you can ever time a bottom. So you want to get
invested if you can. And if you're not thinking about just timing Mark what about the actual levels here. What is the low
when you think about the S&P and how wide do spreads get especially in the high yield market.
Oh I think I think the market could go down a little bit more. You know whether it's an extra 5 or 10 percent
but you're getting there a lot of it is getting priced in. So I think the summer is usually just very slow
and then you'll have the next Fed meeting. I think after that that's when you'll get close to the low. Everybody knows we're
either getting into a recession or is going to be close to a recession. So
I don't think there's a lot more negative news that's going to come out. You know the question really is going to be how long
is the recession. Is it three months. Is it six months. Is it a year. I think ultimately it's going to be pretty short because
the economy's doing OK. It's just rates are making things more expensive. Like just think of your home right. The average home
is is three hundred thousand dollars. That's mortgage. I mean everybody's interest costs has gone up because of this anywhere
between 50 to 100 percent that that's going to have a bigger impact on people than sort of inflation. So if the market is
sort of hinting that they want to look at a 75 and a 75 if the Fed does 50 what does that mean in terms of being a dovish
surprise for your markets. All right. I don't know. I mean I think just end of the day the
market wants it to be higher because they want the pain to come and go as quickly as possible.
I think the fear that ends up being if it's 50 is the next one 75 and the one after that 75 pray. It's I think the market wants
certainty and that's not what it has right now. But you may get some of that tomorrow when the Fed announces where they are and
what they're raising it and the reasons why they didn't do 75 or the reasons why they did these 17 times. I think we people love
the guessing game. I like to just wait. I mean I know if I don't think a company is
going to file for bankruptcy if I think a company is going to be fine I'm going to buy those bonds or I'm going to buy that stock
because I know it's going to do well and it'll turn once all the bad news is out on the macro side. Talking of well bad news and
some for selling we have seen a lot of pain suffered in the prep time. OK. And Mark I know you know someone who looked at clock
tower for example analyzing crypto firms. How much further we got to go in that particular area.
Oh that one. It feels like you've got more room and the simple reason is just I think people viewed it as being a really safe
instrument and nobody thought Big Boy was gonna go as low as it has or Coinbase or a number of those. So because of that
a number of people now are very nervous and they're trying to figure out should they get out. So I don't think you have
natural buyers. I think you have natural sellers today. And nobody knows what
the bottom is for that. But I think you'll still have about a bit of pain in the crypto space. What about all the
institutional money that was meant to come in. What about the 4 billion raised by a venture capital fund such as Andreessen.
I think the money's there and I think it'll start coming in slowly. But
what's the harm in waiting a month or three months like there isn't any harm. So I think you do have a bunch of money on the
sidelines but you've got a bunch of money on the sidelines and a number of sectors. So I think people right now are just saying
I'm going to come in. I'll come in slowly because I have time because the news that's coming over the next three to six
months. Best case is it's flat. And worst case is it's negative. Right. So what's the rush.
Speaking about Rush. To what extent are you ready to rush in to investing in stocks tied to China. Is this the time to buy or do
you see more pain ahead as well. What Chinese stocks. I think for us we're looking at things in Asia more than in
China. Because I do think you know when you look at what's happened in the U.S. where you had the reopening because of
Covid and we've gone way past that right because that all started
taking place last year you're going to see the same thing happening in Asia. Same
because China ends up dominating that as China keeps opening itself up because they've been closed for quite some time
because of Covid and much much worse. But I think the U.S. ever went through
you know because in China because of the regime you're able to sort of keep people in their homes and closed businesses. I
think as that opens up you're going to see quite a bit of demand that starts coming out of that. So and out of Asia. So I think
you'll see some positive momentum there. Big picture. Does two in 20 still work.
I sure hope so.