globally and that is before our bigger investments that we are making in kentucky and tennessee with batteries and assembly coming on line because they don't come online until about 2025. taylor: i'm taylor riggs, let's take a look at the equity markets today and it doesn't even to describe the intraday volatility that we had. big rebound into the closing bell, all ending up in positive territory. interesting, changing up the board at one point, the nasdaq 100 had been down 15% from the latest peaks we had seen. down only 12% now in that correction territory but the rebound today certainly helps. "-- "what'd you miss?" starts now.

[bell] caroline: i'm caroline hyde and what a day. maybe this goes in some part to talking about the s&p 500 falling 4% at its worse today. staging a phenomenal comeback to finish in the green and it is the latest breathtaking reversal with investors wrapper -- rattled by everything. geopolitical tensions, a hawkish turn. but a stunning turnaround. romaine: stunning is probably the word of the day. take a look at what we had to her here today. >> my sense is that investors were waiting for a day like this . >> its heightened uncertainty because the fed has pivoted. >> such aggressive selling in such a short time, you have to look at what is being thrown out . >> there are areas you may want to be invested in.

>> intrinsic value for those higher quality tech companies in particular. >> would list demand in the economy and things should rebound quickly. romaine: a phenomenal day, no matter which way you cut. our assets reporter is here to talk to us about it. the start of the day, we pretty much open blower and it was a straight shot down. every now and then you saw the market try to dusted elf off but every time we started to rise, you would see about of selling and something flipped around 2:30 today. >> what is that thing that flipped? i think it's the dollar buying the dippy or. the past couple of weeks you had futures higher and it flipped in the european session. look at the global selling picture where it was concentrated and then seeped into the united states.

that will be crucial with buying happening towards the end of the asian open. it's interesting that that kind of play-by-play could have a bit of a regional diversions in terms of who's buying. we talk so much on this program about institutional investors but in the rise of the last year it's been the regional investor. there was one piece in the short term that they are capitulating over a washington crossing advisor, noting that they had started to sell this morning. how are you thinking about the dip buying from that retail investor? the retail -- kriti: the retail investor, you saw the biggest pieces of the dip buying happening on and oversold buyers headline and most of it was concentrated in value stocks in particular with these nets that they were making and i know

sometimes the financial community doesn't like to see retail investors operate on fundamentals, but this is what they did. that the impact is going to be short lived and they proactively traded on that to the point where they traded on the backs of the dip, buying into value stocks in particular in the financial community said is this the start of the value related outperformance? right now you are not seeing that because the selling right now is more fed oriented and of course related to the geopolitical risk, those are not the kinds of headlines that tend to get the retail buyer attention and that's where you are seeing the divergence between retail and institutional. caroline: i like what you said in the beginning about the different regions. thursday we set the reversal in the other direction. do we brace ourselves for that?

kriti: january is a seasonally volatile month. we saw this last january, right? the meme stock frenzy? the whole rko, we still don't know how to say that. basically it was kind of the sparring of the moment with the build back better congressional agenda of january and this was always going to be very volatile in the first quarter especially was set to be that but the question is, in this decelerating environment, in a date -- in a decelerating growth environment ultimately defensive stocks outperform but it takes a while to get there. romaine: we cannot be remiss in the data that we saw at this point. back down around the 50 level there. and of course the geopolitical issue there. pre-to gouda -- kriti helping us

break it down here, the selloff turning into a rally, but the question is, where'd we go from here? jimmy chang, chief investment officer at rockefeller, joins us now. at one point on the day this was a global selloff and it seems like everybody was rattled by what they thought the fed was going to do, whether it was purchase the geopolitical issues with ukraine and russia here. looking at the market sentiment here, are they generally positive longer-term about what's going to happen? jimmy: it's really more mixed behind the curve and that's what makes this cycle different from the last few. this is the first time in almost 30 years that the fed says they have found a tenable position. let's put numbers into perspective. starting out with three numbers, 100, 1 hundred 42, 165.

the cumulative total returns of the s&p 500 index, the nasdaq and nasdaq 100 index over the last three years. we have had a phenomenal three consecutive years of double digit gains and it's par for the course to have pulled back the heightened cycle. if the fed has been so helpful driving a massive rally over the past three years, it's natural to expect some volatility. taylor: what about the flipside, that there is no better place to hedge inflation then in the equity markets that can keep up with wage inflation, passing on those costs to the consumer, is that where you could see some outperformance? jimmy: it depends on the valuation. the challenge for the current arc in is that we are trading at about 21 times the expected

earnings for 2022. but history, we are in the midteens range. we start off on a higher level of valuation and you could argue that it elevates inflation and is -- and interest rates and the valuation should come down. that is creating the challenge. in fact this year is going to be an interesting year in that the stock market and other markets are going to face challenges as the fed starts to get tighter and equities will be looking at valuation. caroline: talking about the global perspective, that is what you helped to bring us so much. the golden bracket china index was significantly beaten up today and didn't get in the green. how much are we likely to see the u.s. over or outperform some

of the biggest economies in the world? jimmy: china is really on a different trajectory, they took the pain last year with the crackdown on their tech sector and education sector. they got clobbered and the expectations are extremely low. looking further into 2000 202i would expect you are seeing the chinese central bank starting to ease expectations that are low. from a trading standpoint they are not badly positioned and potentially they could do pretty well. the issue with the u.s. coming into the year with high expectations and we are not owing to a heightened cycle, so this year may turn out to be a one of the rare years that the u.s. may have wound up under romaine: we saw -- underperformance. romaine: in terms of the start of the year with european stocks

versus the u.s.? jimmy: europe has the cyclical recovery potential where china starts to stabilize and that improves the business sentiment in europe. on the other hand they haven't experienced the massive stimulus we have had here. on a comparison basis it's not as difficult. the challenge for europe right now is the ukraine russia situation, which will come to a decision in the next month or so . getting warmer, difficult for them to follow the path if they choose to. it's a very binary event. either they escalate and we get a big rally or russia moves in and probably they will go all the way to key have they are not punished with sanctions, why not go all the way?

caroline: we have had a lot of -- taylor: we have had a lot of political analysts saying it could be like a china taiwan situation. from an investment standpoint, how do you invest around rising julio -- geopolitical events? jimmy: i think that the environment gets choppy or from here and you could get some exposure to strategies that allow you to go on the offense. i think that even precious metals, you spoke to hedge to the political risk and that makes sense. caroline: we want to thank you, jimmy, for always bringing your expertise and thoughtful perspective from the rockefeller family office. coming up, we are going to dig so much more into these market asset and crypto, we will have the vice president of institutional lending with us. this is bloomberg. ♪

romaine: welcome back. triple take is focused on the massive market swing we saw today. one of the big ones was actually crypto. you have been talking about this all day long. we might have seen the equity selloff coming. taylor: i always pay attention to caroline. caroline: romaine doesn't, it's painful but i'm used to being ignored. no, of course, this asset was one you can trade over the weekend and many pointed out that it fell hard over the

weekend and you don't usually see that. it didn't re-correct itself and it signaled pain to come and therefore i was interested in its own turnaround, the front run in the rest of the market but over 10 days we learned how painful it had been over the last 10 days per bitcoin and the rest were falling hard. will this turnaround perhaps signal a bit more risk-taking to come? taylor: let's get our answer. what are the signals you have been getting from dope. we have been watching it a lot today, big rebound in the equity market. any signals you see in the world of crypto? >> pleasure to be here. crypto markets the last couple of months have sold off pretty highly. you know, this time it's a

little bit different than previous selloffs we have seen before but one interesting aspect is this disbursement of returns we have seen outside of bitcoin and a theory him. talking about an fts, gaining plays. lower than their high watermarks. but relative to where they were in june of 2021, they are still much higher in that's a pretty good sign that, you know, returns are dispersing a bit more and there isn't sort of a single way that the asset class moves the whole and it is a sign of an ensuing market and some of the other things i've seen on the institutional side is volatility trading. 60 last week on thursday. something crazy happened and now we were here area leading tactically into the markets,

entering that market in a certain way. billions of dollars per capital. markets were more elevated in the public and most likely it was going to go towards private deals and now that valuations have come in a lot on public liquid assets, i suspect you will see a bit more spot buying. all of those kinds of things coincided with a nice certain bottom that had today. caroline: many have been wondering where the institutional play was in that. has the selling been largely on the retail side of things or has it been the institutional play? >> that's a good question. tech stocks are de-risking at

the same time. so much of the selling has been from institutional players. we get less retail there. what we get is from the automated asset that tends to purchase heavily. it was a global bid coming back rather than aggressively selling , just getting further and further, wider and less liquid. it sort of moved the market a lot. there was exhaustion from 2021. when you saw just like the nature of the market 2021 and the gains that people had, the volatility, i thing a lot of people that were long, they have been long for 40 k or whatever and now they are a little bit less inclined to aggressively tile in and were waiting for more support to get established in we are seeing the early signs of that. romaine: there's a lot of talk

now about the floor that's out there with institutional buying and investment in the sort of, caroline will kill me for saying this, but the underlying technology out there. in a lot of seriousness there is a lot of money flowing in that isn't necessarily going away. investing in the companies and the technology behind that. i'm wondering if you view that in any way as providing a floor for traders in this market. >> rather than having to be forced to buy the allocation and elevated prices. in many ways they are really grateful about it. speaking about the technology question and the underlying coins, you know, both are going to be interesting. the technology aspect is more like the genesis of the world. the pix and the shovels who facilitate the trading.

those will be sort of beneficiaries of the spot price market more volatility in trading going on. we are definitely seeing institutions be not like it turned, but more like getting ready for it. romaine: we just got a question coming in from the audience, you inspire, which they like to see. is there leverage built into this system? i feel like every time we see a big selloff everyone is like it's healthy and it gets the leverage out of the system but does the leverage just come right back on? does the short position stay right washed out or not? >> that's a great question. what we have seen was less like nasty leverage liquidation and more just sustained selling and moving slower further back. a lot of the people looking for a march of 2020 type dig leverage instant spike washout haven't gotten it yet and we

haven't seen that. leverage innately was pretty low and even on this move interest has moved higher but i don't think it's getting out of control either way it all right now. taylor: really appreciate your perspective. switching from crypto to what we can expect as we push the story forward with the wild swings in the u.s., taking a look ahead to the asian session. shery ahn, cohost of "bloomberg asia," about to go on. thinking about this while day in the u.s., how do you think about this playing off in your trading? shery: we are seeing now need k futures trading slightly any positive territory. -- nikkei trading slightly in

positive territory. already in correction. new zealand already selling on monday with costs in the new york bear markets down from the recent high. also, china seems to be a little bit different because we saw the golden nasdaq china dragon index falling 1.8 sent and they have video syncretic news as well. mainland markets near bear market territories are watching airlines in china because they are continues to be tension between the u.s., china, the government here banning flights over covid testing protocols. romaine: well, you have got a lot of work to do here. shery ahn, coanchor of "bloomberg daybreak: asia," which will come on in a few moments and we will see if they follow the lead the sought the end of the day or more like what we saw at the beginning of the day here in the u.s. back with our final thoughts in

a minute. this is bloomberg. ♪

romaine: triple take today on the wild swings in the rally to close out the day and we still remain in correction territory. romaine: retail, invest -- caroline: retail investors, though. taylor: you know what i thought? there wasn't a big selloff in credit that there was a great conversation about how stable it was within the yield market but now in the tens, 20's, 30's, yields are rising. caroline: the fed meeting starts thursday, what is the fed thinking about it? taylor: we will have to go hawkish now. wage inflation could be a real thing.

romaine: we should point out that the russell is still in the all-time high, a bit of levity but not the worst case scenario that it looked like we were heading towards. taylor: "bloomberg technology" is up next. caroline: have a great evening. this is bloomberg. ♪ every day in business brings something new.

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announcer: from the heart of where innovation, punny -- money and power combined, this is bloomberg technology with emily chang. ♪ emily: this is bloomberg technology. coming up, what goes down comes back up. storm back from a 4% plunge from a closing higher on the day. we will tell you how tech is making out. that coin