Marko Kolanovic Is Back With a Warning for Stocks

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Odd Lots 51 min 7 speakers 8 chapters transcribed 1 month ago
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What is Marko Kolanovic’s background and why is he called “Gandalf”?

Carol Masser 0:00
Gain insight on the innovators, disruptors, and tech-driven trends shaping today's complex economy. I'm Carol Masser. And I'm Tim Stenovek.
Nick Goodall 0:08
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Carol Masser 0:11
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Nick Goodall 0:24
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Carol Masser 0:29
listen. Bloomberg Audio Studios, podcasts, radio, news.
Tracy Alloway 0:48
Hello and welcome to another episode of the Odd Thoughts Podcast. I'm Tracy Alloway.
Joe Weisenthal 0:52
And I'm Joe Weisenthal.
Tracy Alloway 0:54
Joe, in your uh in your history of being a financial journalist, what are you like most proud of in terms of coining phrases?
Joe Weisenthal 1:04
Oh
Tracy Alloway 1:04
I gave you a hint just then 'cause I assume it's mint the coin.
Joe Weisenthal 1:07
Yeah, oh good one. Yes, sure. Mint the coin. That's right. Okay. Thank you. Yes.
Tracy Alloway 1:11
Uh so I have a few. I have uh China's Great Ball of Money.
Joe Weisenthal 1:16
I like how you're like, what are you most proud of? And this is going to be my saying to what I'm proud of. But keep going, keep going.
Tracy Alloway 1:22
Thank you. You called me out. Uh Europe's sovereign bank loop. Yeah. Although no one believes that I invented that one. And flows before pros, which has come up quite a bit on this podcast. So the idea that, you know, when valuations are extremely high and everyone's buying everything no matter what the price, that it's kind of momentum that matters more than fundamentals. Today I'm very happy to say we are going to be speaking to a pro who knows flows. How's that?
Joe Weisenthal 1:51
Excellent extremely well done, Tracy. Thank you. Uh excellent setup. Of course I appreciate all of the Tracy uh neologisms. Man, what a time in the market. Uh to be talking about flows, to be talking about momentum, et cetera. I feel like I you know, it's always chaotic, it's always uncertain. There you'll never get an answer. But man, things feel really noisy right now.
Tracy Alloway 2:13
They feel super noisy. So we are recording this on January 30th. Uh it is a week that has seen a very sharp sell-off in tech stocks, uh, thanks to anxiety over deep seek coming out of China. We're gonna talk about that. And more generally, we're just gonna talk about what's going on in the market right now, how investors might be handling it, and how the market structure might have changed over the years. And As I said, I'm very excited because we do have the perfect guest, the pro who knows his flows. He has a lot of nicknames, actually, uh, Gandalf being one of them as well. Mm. Actually, I didn't realize one of our uh colleagues at Bloomberg uh kind of coined that name for him. But of course, we are speaking with Marko Kalinovich.
Tracy Alloway 2:56
He is JP Morgan's former chief global market strategist and co-head of global research. And now he's with us to talk about the market. And uh Marco, thank you so much for coming on Out Thoughts.
Marko Kolanovic 3:09
Thank you so much for having me.
Tracy Alloway 3:10
I'm very excited. I know I've said that three times now, but I guess we should start with the recent sell-off, like the uh the deep seek, deep stock sell-off. There are all these superlatives that you can use to describe Monday's action, like the biggest single stock plunge in history in the form of NVIDIA, and like eight of the top 10 biggest one-day drops in the SP 500, et cetera, et cetera. And actually, as we're recording this on January 30th, Microsoft is down six percent after earnings. So maybe the tech sell-off isn't over yet. But one of the interesting things about this week is there hasn't really been broad contagion. So most stocks in the SP 500 were kind of like, meh, we don't care. When would you expect some of the anxiety over Deep Seek to maybe start having a bigger impact on the broader market?
Marko Kolanovic 4:03
So, you know, as you said, there was not much contagion, you know. And if you look at the different stocks in SP, many of them were actually up, you know, and many even in the tech sectors sector were up, you know. If you look sort of for instance, you know, Facebook yesterday or today or a bunch of other names that sort of were perceived that they might be sort of benefiting from, you know, the sort of open architecture, you know, s type of things that can come at a cheaper price, you know, and and can

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