Single Best Idea with Tom Keene: Claudia Sahm & Amy Wu Silverman

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

In this episode, we feature conversations with Claudia Sahm & Amy Wu Silverman.

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

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Episode Transcript

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

Speaker 2 (00:14):
A single best idea, Well, the first idea is we
survived the Taylor Swift drop. Thank you to Amy with
Silverman for perspective. She's going with daughter, I think fourteen
or sixteen kids tonight to some theater to see Taylor
Wax philosophical about the new product. Lisa Mateos saying Taylor's
clocking in with a net worth over two billion dollars

(00:35):
right now. Good coverage of Thank for the comments pro
and con to our coverage, and we'll get to Amy
with Silverman here in a moment. The single best idea
is never has there been a single best idea like
this for Jobs Day with a shutdown, we said, we're
still going to talk to people smart. Claudia Sam joined
us from New Century Advisors. Claudia Sam on a unique

(00:57):
Jobs Day.

Speaker 3 (00:58):
This is the time where we come to go every
month and wait to find out the latest, the best
reading that we have on what's happened in the labor market,
and we don't have it today, Like we're not going
to have that discussion. So that's to me, we're not
flying blind. There's a lot of information about the economy

(01:18):
that we're getting, you know, even as the federal government
has shut down, but we're missing a really important piece
of information. So our vision is impaired. And what's really
frustrating is the September employment report exists right like these
numbers are sitting there. It's just because the workers who
would normally put that up weren't deemed essential. The big

(01:39):
thing that we don't have from the private sectors, we
don't have a measure of slack in the labor market.
The unemployment rate is one of those you know, fits
in that measure of like workers looking for work that
don't have it versus workers who do have work.

Speaker 2 (01:55):
Claudia Sam of New Centery Advisors, maybe in thirty thirty
one we'll have a jobs report to talk to doctor
some about. Amy Wo Silverman out of Princeton is absolutely
brilliant at RBC Capital Markets. When she walks in her
room on Wall Street, the quant stop, the normal people stop,

(02:15):
the salespeople stop, and they just listen to Amy Wo
Silverman on the dynamics of the market. Yeah, we talked
about Taylor Swift with her and made jokes, but what
we really talked is about the unique derivative space the
cross moments and quantitative finance. Here is Amy wo Silverman.

Speaker 1 (02:35):
The big change to me post COVID is you can't
rely on these traditional correlations, right, You can't rely on
your heads just being a sixty to forty portfolio. I
think MAG seven changed a lot of that. And then
you look at the intercorrelation between MAG seven which has
then relatively low, and people are scratching their heads and
they say, how is it that you're all integrated into

(02:56):
each other's supply chains that yet this correlation isn't that high.
And so I do think that's why you're seeing these
different expressions of hedges Tom that weren't necessarily the case
five years ago.

Speaker 2 (03:05):
Emmy was Silverman, and she was brilliant on hedging. Hedging
is where you own something and you're not confident about
the direction. Say it's a stock and you want to
go up, so you buy or acquire protection. You hedge
your risks by doing some form of strategy where if

(03:25):
you go down or you don't go up as much,
you're still protected a little bit. And as Amy was,
Silverman said, that's a fragile business. Right now, we're on
podcasts on Apple and Spotify, on YouTube, podcasts, it's single
best idea