YouSaid · the spoken record

Luis Yamada

lines on the record: 89
first: 2016-11-23
most recent: 2016-11-23
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Missed it. Follow your own advice We have been speaking to Luisha Mada. She is the manager and owner of Luishamada Research Advisors. If you enjoy this conversation, be sure and look up and enter down an inch and you'll see on iTunes and you could see nearly all of the other 100 and somewhat previous conversations we have had. I would be remiss if I did not thank Taylor Riggs, our booker, and Michael Batnick, our head of research, for helping us put this conversation together. Be sure and send us your comments, suggestions, and ideas at our email address. That is m-i-bodcast at bloomberg.net. I'm Barry Ritholz. You've been listening to Masters in Business on Bloomberg Radio.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And so you were selling you in us too soon and I know you weren't holding on to your losers, but you were selling the wins. That's”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's a fair answer. And my last question, you said you've been doing this for 40 plus years. What is it that you know about investing and technicals today that you wish you knew 40 years ago?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Wow, that's pretty interesting. So our last two questions, my favorite questions. If a millennial or a recent college grad came to you and said, I'm thinking of going into technicals as a career, what sort of advice would you give them?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You buy it on the Admiral Fund at Vanguard at six basis points. Practically free when you look at a lot of active mutual funds or one and a half two percent That is a huge drag on performance and people have figured out, hey, I'm not a great stockpicker in market timer, I might as well be passive and save on the cost. And that realization, and it took the dot-com crash, the housing crash, and then 0809 to sort of force a lot of people into throwing their hands up in the air and saying, all right, I'll just do this. We'll see if it lasts. I assume this is a secular change that has a way to run. But what do I know?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's certainly my colleague, Josh Brown, calls that the relentless bid. It's that there is always a buyer in the asset allocators in the passive. Vanguard, again, Bill McNab, said it's not passive versus active where the change is. It's high cost to low cost. And you look at, you want to own the S&P 500”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“The Vanguard CEO told me that when you look at When you look at ETFs, they're about 15% indexes, passive indexes, are something like 15% of the I'm sorry 30% of the US market, 15% of the global market as purchased by institutions and 5% of the investable assets. It's smaller.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Let me ask you the question that's in my mind these days. The move from active trading to passive, the rise of ETFs, what has that done to the way people invest and trade?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Except there's still demand for products and there's still demand for services, and as long as that demand continues, an economy is going to exist, it's just different than the one you and I are used to. And that transition always looks scary. Go back 100 years, half the country worked on a farm, now it's what? Two percent, four percent. That transition was also very, very scary. It's easy to get into a really pessimistic circle of it's all going to be robots. It'll look like Wally and nobody will have jobs. I'm hoping that that's not the final outcome. But I digress. So let's jump back to some of our other questions. You had mentioned HFTs as a structural change. What other shifts do you see coming along?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Um... He had suggested that this current generation is increasingly aware of the fact that they are solo practitioners, they're free agents. And the gig economy is something that everybody is sort of embracing because if you're only making X as a job that may not be your long-term career goal, well, you could sell stuff on, you can drive a car, you can rent out an extra room, you could sell stuff on Etsy. Entire new sharing economy that is being used to supplement regular people”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“The interesting conversation I had, I'm drona blank on his name, speaking of no memory, who wrote, he's an NYU professor who wrote the sharing economy. He was on a show a few weeks ago. Aron, I'm trying to remember his last name. Anyway, it rhymes with Maroon, Arun.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, the big problem China is facing, and I've had this conversation with a handful of prior guests, they have a billion-something people, half of whom are still on the farms and they're trying to move them into the cities. What happens when automation replaces these giant Foxconn and other factories? They're looking at a real, you think social unrest is potentially an issue here. Look at the issue that they're going to. It's kind of hard to imagine.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“At the same time you have global arbitrage between salaries, so that's a natural cap on people's salaries rising, and inflation used to be something caused by rising salaries and too much money chasing too few goods That doesn't exist anymore.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You look at the total productivity, the total output of the country And the number of workers Somehow they're missing the fact that This number of what are we coming up on almost $17 trillion? Somehow this is not being appropriately”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, I love George Box's line. All models are wrong, but some are useful. When I look at some of the models, and be it employment and unemployment or productivity, it seems like as technology has gotten more and more integrated into society, The models are just completely diverging from reality”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Maybe they reverse us most, purified it, reverse osmosis. That costs more than a gallon of gas than an equivalent amount of gas”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's what we're looking at. You have a huge drought in California. People don't realize you buy a bottle of water in the store. Think about it. Someone turned on a tap.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Any mis you like mysteries. I like mysteries. You try and guess the end. How good are you at figuring it? My wife is. My wife is always halfway through a book and she's like, yeah, I know who did it. I'm done. It ruins it for her If she could see it coming too soon, you got to hide that. So give me a mystery or two that you really liked.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Give us a mystery. By the way, Bill McNabb and I wonked out on science fiction. So don't feel the obligation to give me a game. Almost any mystery.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Traders, economists, it doesn't have to be investors. Mm-hmm. Really? And so let's talk about books. What are some of your favorite books?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Really, it's a hedge fund. Why is this philosophy? How did this develop? Nobody gives him time to extract. Anyway, I'm digressing. So I've I like the format because I get to ask people like you questions like tell us who your early mentors were. You mentioned Alan Shaw.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You wouldn't give him forty two cents. He just looked like a chain-smoking bearded hippie. You would never give him a dime. And Ray Dalio, every time I watch him on the media, all I can think is, that is a terrible format for him. Ray, please come in. I promise. It'll be fantastic. It's huge. I'm huge all over the country. He's a really sharp guy. I love his philosophy. I love his philosophy and how he's thought out the importance of transparency and responsibility.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I am, but having nothing to do with any of this, this is just fun for me. I genuinely enjoy this, and hopefully that comes across. I'm still hunting my white whales, so I have Alan Shaw and Bob Farrell, and then Ray Dalio and Jim Simons are also on my. So I went undergraduate to Stonybrook for mathematics. freshman year visit the campus, the chairman of the math department is Jim Simons. So I met him a hundred years ago. And by the way, if you would have met him in 1978”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, because if anybody really knew who I was, they would say, how did this idiot get to? No, you don't understand. You're very terrible.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, they also say, hey, nobody ever asked me these questions. But the fact that somehow I've managed to Convince people to do this, I call it the greatest scam I've ever felt. Well, I don't think it's a scam.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I have, it's, I say it's the most fun I have all week. I get to sit down with people like you and ask questions. Last week was Bill McNab. The week before that was Amwan Damadoran at NYU. You know, how often you get to grab these people and say, give me 90 minutes of your time. It's the single greatest scam in all of finance.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Try not to hurt yourself, kid. Pretty much. And it was a skunk works project for a long time. Nobody was paying attention to it. And when no one was looking, it suddenly became the most downloaded. Bloomberg podcast and the rich. I enjoy listening.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Recommendation is good for eight seconds, and as soon as the next piece of news comes along, it's bad. So I kind of, when Bloomberg said to me, hey, we have these great facilities, what would you like to do? My answer was, I want to sit down with experienced, successful, interesting people and find out how they got that way. And hopefully we all have something to learn from that. And besides, nobody else is doing long-form deep dives into what makes someone successful, who are their mentors, what do they read, what do they do, how did they become successful, and to my surprise, Bloomberg said, go ahead, go do that.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“How did this come about? Yes. So I've told it on air before, but the short version is I've been a critic of financial media and television and press for a long time, and the criticism has always been don't tell a person, don't give them a fit.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“All right, so I know I only have you for so much time. Let's, oh, you asked me a question before. Before I get... My favorite questions You ask me a question on the way in”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You mention of all the big tech companies from the nineties. Most of them have not regained their prior glory or anywhere near it.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I completely agree. You reference something. I want to talk about that. Microsoft So Microsoft, one of the biggest companies, still one of the top 10, what are they three or two these days? It's Apple, Microsoft, ExxonMobil, and Amazon are pretty consistently in the top ranks. Microsoft is one of the few companies today that was also one of the giants in the nineties. Explain that.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So let's talk about inflation. It's been said there's Inflation in the things we need and deflation in the things we want, meaning TVs, technology, phones, they just keep getting faster, better, cheaper.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Isn't that, and the same with bonds. So my argument about bonds has been there's a shortage of fixed income sovereign quality paper. And you have a ton of buyers. That's what's been driving it lower. Is it really a currency hedge for the Swiss to buy? I mean, they must really like the new Apple VII, the iPhone 7. What advantage do they get buying individual stocks or indices?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Now, in Japan. There is no secret plunge protection team. Their central bank is literally in the market buying stocks, and they've publicly said we're going to go buy stocks. What does that do to markets and charts and what have you?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, forget it today. The Russians are hacking Everybody in the Chinese are hacking everybody's email. If something like this was out, wouldn't somebody have a vested interest in if for no other reason fame and fortune for being the one who proved the plunge protection team is in there doing what they're doing?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Would think, right? I mean, someone does insider trading for $800 worth of options and it shows up on an SEC screen. I am not a, I tend to be a skeptical person by nature. And when I hear people saying, well, you know, the Fed is propping up, you know, the plunge protection team is propping up the market. How would they keep that quiet? I can't imagine that not a single person would leak it. There's just a million examples of things people try and keep quiet, and it eventually gets out.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Because I think that, you know. George Carlin used to tell a joke about Indian fighters, and he would say, and it's George Carlin, not me, it's not that Indians are bad fighters, just because they started out defending Boston and ended up in San Francisco doesn't mean they're bad. So I always say the same thing about the plunge protection team. Hey, just because the Nasdaq rolled over at 5,000 and ended up at 1,100 doesn't mean the plunge protection team doesn't exist. They're just really bad at their jobs. And here, look at 0809. The market down 57%. Wow, imagine how bad it would have been without the plunge protection team. What are they doing?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Classic rookie mistake Hey, one of the things I learned early on, that is wrong, is, hey, no one ever went broke taking a profit. Actually, you do go broke taking a profit, especially because you're not having big enough profits, and especially if you refuse to admit error and hold the losers all the way down. It's a classic mistake So let's jump on some of the questions that we missed. Earlier, and then we'll do our favorite questions So let's talk a little bit about the markets from a structural perspective. Other than HFT, how do you see the structure of the market having changed?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, it broke out of the range. I didn't stay. I had made it, you know, what is two or three percent who really cares about that? But I find that the nice thing about charts is it gives you a place to know for sure where you're right or wrong. It's a error correction mechanism. If you don't like something and it's over a certain price, you're wrong. There's no arguing with the story. There's no coming up with excuses. The price is the final arbiter.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“One of my all-time best trades was a loser in Google. And I want to say it was range bound between 180 and 200 and you bought it 180 and sold it at 200 and bought it 180 and shorted it at 200. And this was going on for a while. And I remember being short Google. It broke out over 200 and I covered it like 202 or 203. And it just never looked back. And I was so pleased with that trade, not only because I was disciplined, but wow, this really did what it was supposed to do.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Everything I learned took me a long time to unlearn it, but everything I learned about technicals and trading was in that context. Hey, a $10, I'm rewarded, therefore my muscle memory is by the dip, buy the dip, buy the dip. And therefore, when the stock price comes back to 10, I'm a buyer. And once that's violated, uh-oh, this doesn't work anymore and I'm done. Now, I don't know if I'm creating a narrative on what you described or if that's consistent with...”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Stock now goes to 10, and they say, God, if I can only get back to 15, if I can only get to break even. And so when the stock gets up back to fifteen, all those previous buyers are sellers there. Because they have a memory, Price has memory as the expression. And when all those sellers are exhausted, where there's nobody left who wants to sell at 15, that's how you get the breakout, and that's why there's no overhead resistance. The flip side of that was people who have been buying a 10 and being rewarded, hey, I bought it a 10 and went to 14, I sold it, it came back to 10. That's right, traders. I bought it, it went to, and I began on a trading desk.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So here's how I recall having this explained to me when I was youngin'. You have a stock trading in that range, let's use 10 and 15, and people who bought at 15”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So everything's already happened. I read the Times in the Wall Street Journal on the not that I'm trading actively the way I began my career. But I've always read it on the train on the way home”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Done. Okay. Charlie, make a note. We'll go into Shelter Island. So you go through minor digression. So you go through the sectors, you go through individual stocks. How much do you pay attention to the news? What do you read in the papers? What do you watch on TV? How important is the background noise to what you do?”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I will go to Shelter Island. I am happy to, for him, I will take the trip. Aside from the fact that Shelter Island is delightful. Happy to stay at the Rams head in or whatever, but I'm happy to do that. Listen, I went down to Valley Forge to Vanguard. I'll go out to Shelter Island for that.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“This isn't necessarily their audience. I always try and convince them we need you to have this conversation for posterity's sake because my goal, you asked me how this came about. My goal is to create a library.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“They've pretty much, well, they've always been well known amongst certain folks on Wall Street. And I don't want to say press shy, but...”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Not too long ago, and I begged him to come on here. Yeah, yeah, yeah. Talk to me later. And that was the last I heard of him. I have two.”
2016-11-23 · Masters in Business · Interview With Louise Yamada: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source