Single Best Idea with Tom Keene: Ben Laidler & Alicia Levine

Tom Keene breaks down the Single Best Idea from the latest edition of Bloomberg Surveillance Radio.

In this episode, we feature conversations with Ben Laidler & Alicia Levine.

Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:14):
Single best idea, my theme into the end of the
year and probably dazzled into twenty twenty five. Is this
great bull market and make it. Not making an opinion
on buy Hoole sell, but I'm just saying we're observing,
whether you're in the game or not, this great bull market.
The booking team has been phenomenal a by getting in
a cross section of opinions, and today was glorious of

(00:38):
equity strategist Jason Trenner joins us from Strtigius Research and
Gino Martin Adams joined us on short notice with reaffirming
our earning's growth for next year. But you really get
some nuances when you listen to four five six frontline
equity strategists. I know from a couple of days ago,
Brian Belski of Demo Capital Market saying, look, everybody gets

(00:59):
it's a cyclical bull market, but he feels there's a
structural underpinning to it. Of course, he's been a bull
and on board. No one I know has been more
of a bull on board in Benjamin Ladler. He was
at HSBC and on Christmas Eve of two thousand, I
believe eighteen. He said you must climb on board this

(01:22):
cratered market. Nobody caught this great bull market like Ben
laydlor here, Ben Ladler of Bradesco BBI forward.

Speaker 3 (01:32):
We need to treat it with some respect. Momentum is
the most powerful factor historically, you know, in markets. We've
seen this extension of this US economic and market exceptionalism.
We've seen wins appeared a very strong seasonality. So I
think we need to respect it. But again I wouldn't
and I wouldn't fear it because I do think it's

(01:52):
going to be fundamentally backed up by the earnings continuing
to come through and deliver. If that wasn't the case,
I'd be, you know, pretty worried. He because valuations are
you know, evaluations are high. We've repriced down to three
fat cuts. But I think, you know the fundamentals of
this full market, of the earnings are going to keep delivering.

Speaker 2 (02:10):
Ben Laylor constructive and maybe very clear. The free cashlow
story for the Mags seven are tangible. Another equity voice,
Joiner is today Alisha Levine at B and Y. All
of these people are different and you get so you
learn their nuances, their academic pedigree where they've worked all
the different theories that are out there. No one has

(02:30):
a mathematical construct in the equity markets like Alisha Levine.
Maybe the only one in fixed income close is Jim
Caron over at Morgan Stanley with his physics background. Alisha
Levine at B and Y is bulletproof on the math
the Euclidean space, the three dimensional space of equity analysis.

Speaker 4 (02:53):
Here she is the profit is better. Let's go back
to the late nineties. Starting in the late nineties, you
saw a steady increase in the operating margins of the SMP,
which created a higher multiple regime for the SMP. If
you just go back in time and you get your
average of sixteen times forward earnings, well, your margins were
also nine to ten percent. Now we're looking at thirteen

(03:15):
and a half percent for next year, and that's because
it's being driven by the cash flow of tech, and
so the companies are healthier. It's not just earnings, it's
free cash flow. Margins are better, it's keeping the multiples higher.
You've got a healthier market, and the pricing of tech
compared to the rest of the market on a relative
basis is actually lower than it was in twenty twenty one,

(03:38):
nineteen ninety nine, and other periods where there was a
tech boom or you know, a technology change where the
market got excited about a technology change. So it's relatively
less expensive given free cash flow, margins and earnings.

Speaker 2 (03:51):
Alicia Levine of BNY We'll continue this trend into the
new year, looking at the equity markets, all different opinions,
quite frankly, a set of people rather cautious, not gloomy,
but just rather cautious in this great bull market. On
your morning commute on Apple car Play, got the numbers
yesterday for Apple car Play. Thank you so much for

(04:12):
your commitment to that new technology, Android Auto as well.
Good morning on Serious XM channel one twenty one and
on the corridor here on the East Coast from ninety
nine one FM in Washington up the ninety two nine
FM Boston is far north is Mount Catata and Millanocket.
Don't forget We're on YouTube. Subscribe to Bloomberg podcasts and

(04:34):
on YouTube podcasts. This is a single best idea