BNN - Friday, May 24, 2024 - 03:00 p.m. (ET) - Segment #1

on tsn and tsn+ (Soft electronic music) >> Hello. You're watching the close on bnn bloomberg. I'm amber kanwar where 60 minutes to the end of the trading day. Here's what we're watching as we countdown to the close guild. And shares are popping after late yesterday, the board announced it was resigning. So too was the ceo paving the way for the return glen show. Mandy, what to do with the shares. We'll get perspective coming up. And we're seeing a rebound in the major markets right now, particularly lead by the nasdaq after yesterday's. Sound off, it was 2 days in a row. So we are bouncing back from these levels. Cannon hall law will get great perspective from billionaireinvestor ken fisher. He's got his eye on the long game and they'll tell us about the best buys in the market right now. One of the key categories that a lot of retailers keep pointing to is an area of strength has been cosmetics. We're going to sit down with david cape is a president of groupe marcelle bay cosmetics company in this country. Private family. How business pastor generations and get the view of the beauty landscape and how it evolves during economic cycles. But first, here's a look at some of the top stories we're tracking for you right here in the bnn bloomberg newsroom. Canada's competition watchdog has launched investigations into the parent companies of loblaws and sobeys. The competition bureau alleges that the grocery chains engaged in anti-competitive conduct and you so-called property controls to limit grocery competition. Sobeys owner empire is called the inquiry unlawful. Loblaw and empire are 2 of the 3 major grocery canadian players. London drugs says cyber criminals who stole electronic files from its corporate head office last month have released some of the data after the company refused to pay the ransom. The retailer says the files in may contain employee information called situation deeply distressing. London drugs is providing staff with credit monitoring and identity theft protection. Eli lilly says it will spend more than 5 million dollars to boost production of the key ingredient in its weight-loss and diabetes shot. The investment is the largest in the company's history and comes after a surge in demand led to shortages. Willie's weight-loss and diabetes treatments generated more than 2 billion dollars in sales in the 1st quarter of this year. Let's take a look at this recovery day. It's pretty broad based 10 of the 11 sectors are moving higher, everything but telcos. And as we take a look at the tone south of the border, decisively positive except for the dow here here, too. We do have a broad based recovery when it comes to the sectors. Yesterday, the dow plunging largely on weakness in boeing, boeing's recovering little bit. It's up about one percent. But today, the key drag coming from salesforce, the stock down about 3% knocking 52 points off the index. (Funky hip hop music) well, about 5 months into the year and already investors are sitting on some pretty tidy gains. 12 and a half percent for the nasdaq, 7% nearly for the tsx. It may leave you wondering, can the gains can continue because when you average out how these in indices perform every year, we're about at average performance with the rest of the year. Still to go, our next guest says that's maybe not the right way to look at things. Let's bring in ken fisher is executive chair and co-chief investment officer of fisher investments. And can you make this great point that averaging doesn't necessarily tell you the story of what is truly happening. Year over year. >> Thanks for having me back on amber. I do appreciate only on 3 weeks ago in field really lucky the day. The reality is often. Averages mislead in this case. And I wrote about this in global mail column. The fact is that history I were you look at it, america, europe, canada o all slightly different, basically that averages are made of extreme

years. Years close to the average, just don't happen very years. You get some down years, you get very few being down years. But the average year is for the s&p 500 ever just 10%. Go back to 1925 little over. That's a long way to think about it. Logically, you know, g bull market or mine bear market. Well, if you're a bull market, you want to, expect returns that would be normal to a bull market. And they are, they average over 20%, almost anywhere in the developed typically low 20's. So if you think about a last year, i-20 the 20's. That would be normal market. And so we're a bull market now and we're actually do the year and we're average numbers and we still a ways to run because it's a bull market. Yeah, I think that's the kind of so what of, of crunching these numbers is, don't get spooked by the numbers. >> You've seen so far this year because there can be a lot more there. And then it goes to what is underpinning that view that the bull market can continue. Is it that? >> Growth remains generally robust. And even though rates are elevated, seems like a lot of these companies can make a good go of it. >> So it just got back from. We go back to look at the 2022 bomber. Central banks had got near to finish raising rates. 10. Depending on where you are in the world. Markets at a bottom between september between july and september. When you think about october, when you think about that. So banks said euro bank almost every where they're still hiking rates at a pretty good clip. The fed was still doing. 75 beats a clip and the markets going up anyway. Fact of the matter is where moose, the market is current expectations for future reality. And the reality has been that the economy normal growth economy a little on the low side, yes, connelly implosion, the lockdowns in bounces back in a way above average rate of 6% average annual pass almost everywhere. Percent america and then it starts slowly descending back to normal. And we've had pretty much normal gdp growth rates in the developed world, a little below that still feels abnormal. Everything's that post covid fields have a normal and makes people more negative incentive. That is the jon templeton famously said bull markets are born on pessimism. Grow on skepticism, mature on optimism. And I I knew for ian were far so I'd like to ask you that in the context of ai you have seen and you think so deeply about the markets there certainly. >> Areas that can get ahead of themselves. What do you make of the frenzy for artificial intelligence, how much it makes up the broad market and whether it is creating a bit of a distortion. I think that's. >> Home perception. That's wrong. Let me help you with that. Look at all of the countries around the world hit new highs this year or 15 year highs this year. They little to no tech in the middle. Britain. Trump's germany. Denmark. Not a new all-time high, but a 15 year high in spain, you can go down the mountain of the netherlands. Also, it's got some tech but you can go to see that bull market is much broader than people think. But all the countries that don't have. Much any initative all-time highs in this cycle and this year and the last couple months. >> And then we can add to that list as driven by commodities. What do you make of the commodity rally? Does it make sense to you? I am not a good forecast. Commodity. >> They're inherently bowl, but of course, that's not good or bad. And the reality the features last few years also made them a little wacky. And I would hazard a forecast there. I do think and I have said and I wrote a column on this that energy is going to be strong as this year progresses started off. Well, and I think it will continue on the back half of the year because producers have the introduction of new supply coming on in overtime that haul prices sport fossil fuels. Back up to high end of

their last year's range. And then an environment where. Energy prices go up, but don't go through the roof. The big mega drillers do really that's a view on energy. I want to take you back. I asked ai and whacked asked directly broader tech sector just is, is that an area that you see can continue going higher. >> The answer is yes. And the reality is, we're in a very good environment for but let me just say every market, some parts speed and some parts ai and this time obviously leading big tech. Is the world doing well, smaller having more problems there growing, but not overly robust growth economy is perfect for companies that actually can grow in a fairly low growth environment is one of the reasons why growth stocks, including parts of growth that our tech are doing well going back yearly to ai. I want to make a point about macro sentiment tied to that. If you think about the jon templeton phrases, I said when you get into that euphoria it's not about singles of big companies that are strong in their category. It's about I banking world creating garbage to flow into the market, place the ipos and otherwise to take advantage of the euphoric money. And when you get euphoria, pick up in ipos in ipos of substantial quality can do get that, but that's okay. It's part of the world that we're creating some dream for those who are malicious euphoric and want have some hopes and dreams or something much more than a piece of paper garbage. And we haven't seen that. That's what we had some of which spots. >> You're absolutely right. So that's insight that maybe we're not quite at that euphoria you picked up on something you said about these growth stocks. And I think those that are more value oriented. If you look at it, you know, plain vanilla s&p value index for says that growth index, it has been underperforming. You know, when when did the valley investors get a break? >> Put that into perspective for you this way. Because earlier just a few moments ago, he talked about how the dow done so well relative to let's the s&p 500 nasdaq, which you know that in the s&p 500 at all, intraday all-time high yesterday and nasdaq's doing better still why and when. Best time for the value side is when growth picks up. Central banks cut short relative to long rates little down the road from here. Why is it true? Was always the most important questions or you're fundamentally correct in the y on the rate cutting part is because that impacts banks propensity to went win short rates fall long-term rates. Banks were in the core business of taking huge return to positive basin, making long-term loans get more eager to land and the easiest to win or the value companies. They weren't lending too much before or otherwise. Substantive companies as lending comes true real in the world, the value companies become more growth like and actually in really well in the market, the time to see that is with a lag 2. Central banks cutting rates. Well, it sure goes a long rich richard free market senate and it has the global economy continues to improve. >> Now I know you said, you know, like to forecast commodities, I know you don't like to hang your hat too much on interest rates and speculate on when they're going to cut. Are they going >> So you know, I outside portland, oregon for a long and it's like in america to centre of illegal drugs being legal. You get a kind illegal drug, you only leader and you are down the street downtown 10 o'clock in the more you do have freak. Just coming up to you crazy things and you don't want to be close to those people because a crazy because you can't predict what they say and that's what I think the central you know, people that are just crazy. Most central bank and eurobank the did crazy. And when you try to predict what crazy people too. >> Care I'm going to leave it on that analogy. That was beautiful. Thank you very much. That's ken fisher joining the executive chair and co-chief investment officer at fisher investments. We're going to take a quick break when we come back. We're tracking shares of gildan, a stunning resignation of the board and the ceo glenn. Sure mandy, back as ceo. But does that mean if you're a shareholder will find out when

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