caroline: from bloomberg's world headquarters new york, from european headquarters in london, i am caroline hyde. taylor: i am taylor riggs. caroline: the markets, a slight risk aversion in the air. money went into king dollar and brexit continues to riddle the market along with the new various strain.

taylor: it is every -- it is "what'd you miss?" online brokerage robinhood, banks like goldman sachs are looking to adjust. services to a much wider audience as goldman stock itself rising of late due to the decision to let big tax resume stock buybacks. it creates an environment level for value stocks to finally be making a comeback. just an hour ago, finally trying to catch up. long-term chart, it is trying to get up there. if you go back for the year, growth is still very much in the lead. value right about flat for the

year. there but itto get still has a little bit of ways -- little bit of a way to go. caroline: maybe financials can help to get there. the chief investment officer to talk us through where the path of least resistance, most resistance is from here on out. value overall? >> it is. you can look at a wide variety of historical statistics, whether it is that stocks have done better than commodities by the most of any time in the last 215 years, that billionaires like charlie munger, john arene, and carl icahn telling people that real assets are what they should be interested in now. the reason they use the term

real is because those are the kinds of things that benefit from inflation. of if the now $5 trillion government stimulus to the united states and all the money printing the fed is doing gets connected up with 90 million millennials starting their lives, their homes, their cars, canof that good stuff, you see explosive circumstances where to much money is chasing too few goods. >> i am curious the value trade, how dependent is that on higher rates? what happens if we don't get higher rates? >> the higher rates come from the economic activity. examples wee few have so far. since covid-19 hit, it caused in a major way the first real across-the-board interest in owning a home by people in that

28-37-year-old age range. we need a home office or a place to jump on our exercise bike, etc. we took a look right now at the homebuilding divided by population. if we matched the per capita homebuilding of the worst 1980's,ns in the 1990's, and to thousands, we would be building about one million homes this year, which atld be terrible back then the ratio they had at the bottom back then. we are building about 880,000 this year. so, we are not yet building houses at a pace that would just get us up to lousy in the prior 60 years. and there are 90 million people. the price is up 14% over one year ago. that is inflation.

i don't know who measures inflation statistics in the united states. i think all they measure is what the price of what amazon will deliver to your door. that is not inflating. but the price of used cars, the price of houses of our inflating. caroline: you are painting a nice reason to get into lumber at the moment. this talk on equities in particular, we had jonathan talking about how value has not outperformed in a big way since september. the numbers basically value out performers based upon four big news days. how much do you think we will get consistent outperformance from the value trade? >> you would like me to become a rich man faster than i would even want to. i often tell people that you can hold your breath until you win

this war, so i don't even try. but let me say this. comedy ipo'somenon doubling the first day. a stock that went up sevenfold in one year being added to the portfolios of retired americans owning the s&p 500 index index funds and etf's. buy aactive manager, if i stock that has gone up sevenfold in the prior year, i get a pink slip. the s&p just did something that should get it fired, which is by a stock that went up sevenfold in the accounts of people that have no business whatsoever owning a stock that went up sevenfold because it is too risky. not because musk is not brilliant, not because the cars are not cool.

not because the business is not going to succeed over the next 30 or 40 years. all because of how much frenzy there has been, which is what charlie described the market as a few days ago in an interview with caltech. taylor: we only have about a minute left. i want to switch, within the value trade. a price-to-book ratio that is still below one. we have been seeing these levels in years. does that make them attractive or do they have significant headwinds? bill: wonderful question. the economic activity created by the 30-45-year-olds, there are 90 million millennials versus 65 ers, will drive rates higher, banks higher. banks got much higher price to earnings ratio and they do now. the answer to that is, that is

why jamie dimon wants to buy back $30 billion of his own stock. caroline: short and sweet. we like it. thank you very much for taking us through some of the calls. chief invest in debt chief investment officer talking up the capital gain. coming up, we drill down on the new market investment service. why the bank is inviting employees to test the platform before the public rollout. this is bloomberg. ♪

taylor: today, we have been focused on the future of banks. one massive trend in 2020 company surge of the retail investor entering the markets.

goldman sachs now trying to get into some of that wealth management for a wider audience. caroline: it is not just the likes of robinhood. there are all these different wealth management apps out there. goldman sachs wants in on the deal. the beta testing, they already have in the works with their own employee base. they are inviting their employees and consumers in wealth management to try this new service. it provides model portfolios composed of goldman etf's as well as other offerings. when will we get our hands on it? potentially 2021. taylor: let's go right to the reporter. bostick -- cinelli sonali bosak. that they have known wanted to do more of this. they mentioned checking accounts.

they have wanted to be a full-scale digital bank here. we are not seeing robinhood, they are offering active beta, access etf's. they are not offering you the individual tesla stock. the hope is that you are bringing a wider set of investors who want to use all the goldman tools and it is still the somewhat more sophisticated investor. caroline: a more sophisticated investor who has a thousand dollars to start with but also will have to pay a fee. sonali: that is correct. it is about 0.15% of an annual fee. robinhood gold, about five dollars per month. it is a little higher of a minimum here. evenan has said that though what they are known for his that alter wealthy investor,

it is people with under $1 million, people make about $100,000 per year. that is obviously not what we know goldman for, but it is something they are looking to. taylor: what about the broader evil lucian of markets. they kept lowering the fees because the fed kept lowering the rights, so you were not getting the type of return on your investment that you were two years ago. sonali: i am glad you brought that up, because that is a thing as interest rates remain low, just having a product that is a high-yield cd is not really enough for a lot of these investors. we have talked about it on this program, gen x, millennial investors that also want the yields others are getting. inompass the stock market -- comes the stock market and the

personal portfolio for you. caroline: how much of this will be dining out on the cachet that is goldman? sonali: that is part of this. what you are paying for here is the premium brand. goldman's investment services. remember, goldman sachs asset judgment is one of the biggest investors in the world. but, there are growing pains. another story we have out today coincidentally as well as about the losses old men is having to file in the consumer bank. remember, the consumer across the entire board is not the same animal as a big institutional investor and they do have their own challenges. taylor: what the heck is a lovable teddy bear? sonali: a person you have spoken to on your program, he said he wants markets to be that lovable teddy bear.

at the same time, there are these lawsuits in this consumer bank that you are seeing as lending begins to ramp-up. with that said, they are having a banner year. taylor: thank you as always for breaking it down. coming up, the pandemic is causing even america's wealthy to shore up their finances. harold levine from bank of america joints next to his latest survey. this is bloomberg. ♪

caroline: today, we are focused on how banks manage their money and how you manage your money in tanks. they, we got the latest on u.s. consumer confidence and it did not look all that pretty. taylor: take a look at this chart where we report just the headline number, well below expectations of what we thought it would be, but taking into it the present situation in blue also falling and then also concerning maybe a little bit less so, future expectations. that is what is rising a little bit as you get expectations on the vaccine, stimulus. so, a few months out, things look a little bit better but certainly for right now, the confidence does not look like where it should be. but ofe: it is not, course this is backward looking.

a new set of money, a package to hopefully support consumer confidence outside the other part of 2020. we do have this interesting mix when it comes to consumer confidence changing by income. who has confidence, optimism, and who does not? when it comes to those making very little, those making very loud. in the middle, the 25,000-35,000 mark, who are really losing optimism in terms of the middle brackets. much, thosen't make who make a lot, interestingly see and hope on the others of 2020. taylor: bank of america just this week also releasing a survey of wealthy americans to y --that the the head of consumer banking and investments, and reliving, joins

us with more. give us the highlights of your survey, if you have seen this before or if it is concerning for you? >> we surveyed individuals with assets between about 100000 and one million. we also surveyed individuals between 18 and 24. what we saw, which is not surprising, it is about half of the respondents actually felt neutral or positive, and have felt fairly negative. the folks that were pessimistic were leaning a little more toward the baby boomers or seniors, while the younger generation seemed more optimistic or more in line. past, iseen in the think what we saw that was particularly positive is that more and more people are taking action, being more engaged and informed investors. informed,engaged,

aggressive? >> i think there is a growing sector that have been aggressive , but i think overall we are seeing or more people seek advice and look for more sort of long-term strategies that are not necessarily aggressive but more in line with their goals and expectations. oflor: you say that 46% surveyed responses are using the time to get their finances in order. is that just or savings? -- more savings? >> it is really a holistic view. we have something called a life plan that we have millions of clients engage in. people looking at financial wellness, where my position and how do i need to think about my banking needs, short-term savings all the way to more long-term needs? they are really getting thoughtful, leveraging the tools that we offer to kind of manage that process and think about it

as opposed to set it one time and come back to it a year from now. caroline: when you are looking at the survey, you are looking at age groups, but are you also looking at geographical differences? the country being more galvanized? surveys, we have seen certain cities. in this one, there is not a wide range of difference geographically. wise that we have seen some differences. a consistent approach where about half the respondents had some level. everyone across the board seemed to be taking more actions. we have had 25 more uses of our

thought content and we have had extremely high usage of that content which is encouraging. taylor: caroline rightly brings andeographical divergences i am noticing a theme when it comes to age differences as well. people over 55 years old saw that consumer confidence phone the lowest level since june of 2016. reading your survey, the outlook about tempered expectations. older generations, two thirds of baby boomers have a more pessimistic outlook on the economy. i am trying to get the why behind that. is it that they don't have as much time to make up for what was lost this year? i think that is a fair assessment. the same thing we have seen 2008, 2009. the impact, what needs to them as opposed to the younger generations that look a little

more longer-term. i think that is consistent with what we have seen in other crises. what was good to see out of these surveys is that the younger generations are actively managing and thinking about their investments and wellness which will serve them well over the next 10 years. caroline: baby boomers in particular have been able to save. they have pensions coming in and perhaps less to do, the inability to go and spend money. how about the younger generations in terms of what they want to go and spend on. we have talked about the disruptions that have happened over covid. how much of that is sticky? how much are people saving for the ability to go back on cruises, live entertainment? aron: when we are seeing fairly consistently whether it is a survey or interactions with our clients, people did not spend

the money on travel and leisure. certainly, food delivery and those types of things. i think that there is a good chance as people learn from this that savings and investing will stay a higher component but there is no question, as things get active normal, that money will go back and people will start traveling and taking vacations. i expect they will move back but i guess is there will be some additional savings and investment to come out of this. islor: i wonder if there scarring going on? with i am risk-averse everything i do. i wonder if this does scar the younger generation to be more risk-averse? an external event wipes away

their life almost. aron: i think on the market side, there has been optimism and the markets have been pretty strong. obviously, there has been some scarring on other parts of people's lives in terms of job security and just security in general. you are seeing the survey point to a broad range of response and were optimism on the younger side. i think this will be different in that regard, people seeing that there is still opportunity. and i don't think you will get the same level of scarring as 10 years ago. taylor: i am risk-averse, caroline is all yolo. we see that in her robinhood account. thank you, aron levine. carolyn, that was a joke. i hope you don't get in trouble now for all your trading on your robinhood account. caroline: i do not have a robinhood account.

we are fully compliant here. cannot do any of our own investing. extrack around for an half-hour and taylor wants to get you fired. bring back joe and romain. taylor: a lovable teddy bear. i don't know what that is. "what'd you miss?" is done. "bloomberg technology" is next. ♪

♪ vonnie: i am vonnie quinn in new york. this is bloomberg technology. coming up in the next hour, with fewer than 30 days until joe biden's presidential inauguration, he urges americans to celebrate the milestone virtually as 60,000 trump supporters refuse the election results with an