francine: deglobalization. so this is, what, bringing back onshoring? bruce: all it is is -- i think in covid -- i would say it has always been happening and in covid, people just learned we should have production capacity located in -- many things, located where you use them. so increasingly, for example, batteries. for cars, for example. they're being used in america and therefore, there are battery plants getting built in america. and there is an enormous need for capital to fund battery plants. there's enormous need for semiconductors. enormous need for manufacturing capacity in various locations around the world. and it's just natural that everyone doesn't want to have all of their manufacturing capacity in one country or place. let's diversify. so that is just a big theme, which means it's just a lot of capital. francine: you make it sound very easy, but actually, this has gotten you, like, more than $900 billion in assets under management. bruce: you know, it's not easy. but if you have operating people and you keep repeatable -- do repeatable th

deglobalization as well as immigration.ume you mean here the mass deportation of undocumented workers. >> well, tyler on that score i'm not so sure i mean that because i think the initial impulse of higher immigration is actually lower inflation. but actually as those people tend to establish roots, they also start to use credit. so, i'm not particularly sure that this wave of illegal immigration, there's no question it's been positive for inflation believe it or not the last couple years. i'm not so sure it's positive moving forward. and i'm not making a value judgment one way or the other. but i think those other things that you mentioned, we have been running budget deficits of 7% of gdp roughly for the past four years despite the fact that we're at full employment. that's never been done before when we weren't in war or or in a recession. deglobalization, decarbonization all those things are expensive and then maybe most importantly, as you mentioned before, is that one of the reasons why you get a second wave of inflat

i think where it sits is the larger conversation around deglobalization.reimagining of supply chain and onshore manufacturing and also disrupts what the human labor composition of globalization was, which can be expensive. so i really believe that becomes the accelerant around a.i., particularly in automation and manufacturing wherever you can replace human labor, you are removing your sochi from the geopolitical consequences of the outcomes from the manufacturing standpoint. reminds me what happened during the pandemic where in the pandemic i think less than 50% of people in the country ever had deposited a check via their iphones. so that became an accelerant, the remote of everything. now it's the automation of everything that would position companies for cost reduction, productivity enhancement and controlling outcomes in a world that may continue to deglobelize. >> it's interesting because if you hear the stated intent of a lot of the policies, it's not just debris deglobalization, but bring physical manufacturing work here. not necessarily companies

personally i think it's the best investment theme out there right now is deglobalization. and the notion about whether that's in defense or whether that's in domestic production or anything like that i think it's the best investment theme out there. >> mike, any final thoughts? or you want to leave it there? >> we can more or less leave it -- although i would point out this has been -- we haven't really had the seasonal and pre-election jitters and weakness really at a marketwide level you might have expected. >> no. >> we're 2% and 3% below the highs of the s&p. below the surface there's been a little more indigestion but it's really just set this market up to kind of react. i think it's because everyone's on board with the idea once the election's a clearing event then the final two months of the year tilt higher at least based on historical odds. everyone's not wanting to be out for when that starts if it starts. >> let's hope it's a clearing event. >> sure. >> let's hope it gets cleared. >> even at that we've been talking so long about how there might not be a resoluti

one is the whole geopolitical noise we had particularly the last few days around tariffs and deglobalizationthat's a trend we've been seeing, of course, for some years. the concept of re-shoring and -- and -- and unwinding global supply chains and making those more region. we have offices in the u.s. and asia and europe. we can adapt our investments to whatever is the prevailing political environment. sometimes that might be backing companies that are serving local markets and sometimes you might -- you might back companies with a global footprint. we can adapt given our global office network and also our long term ownership. i think another trend in life sciences specifically in the last year or two is issues with bio-tech funding. so, last couple of years, it has been harder for bio-techs to raise capital. it's starting to improve now in the last quarter or two, but there have been impacts on companies that service pharma. that is contract research and contract manufacturing organizations and companies which supply tools for research and development and also tools for production. so, there

is a really interesting one, because we've been talking for quite some time that actually it's deglobalization is going to lead to longer term secular inflation pressures. i think that's fairly lost on the current -- incoming administration, and so, that goes to what i mentioned earlier, that you've got a situation where you've got secular pressures of inflation going higher at the same time you have cyclical pressures with tariffs and the strong growth environment, and that just can't great for yields. necessarily. it could be great for sort of small caps, you know, companies that are really sensitive to strong economic growth, and onshoring, those are the types of companies that are going to do really well in that regime, and a lot of others may be left off. >>> a record day for nvidia as it gets ready to enter the dow tomorrow. the stock is up 10% since last friday's announcement. the company replaces intel, which ends a 25-year run in the index. sherwin-williams will replace dow inc. what do you make of this run in nvi nvidia? >> i don't think it's dow-related. i think because the amount o

that is just the natural progression of deglobalization.merica, it is hard to say that the deficit is the bigger worry. annmarie: can you have u.s. exceptionalism when there could be disorderly policy personnel picks? individuals that are unorthodox that trump wants to join his team, we are unclear on where he will land when it comes to treasury. thomas: certainly a risk. can you have exceptionalism? yes. what underpins exceptionalism is a common law set of rules that we can agree upon and the central bank. we need those things to perpetuate exceptionalism and make sure that sucking sound of capitalism into the u.s. exists. annmarie: the good policies that the markets are picking up on, deregulation, tax cuts, they have basically two years to get this done. but when you look at these pix, matt gaetz for attorney general, bobby kennedy for hhs, does this show that they are basically wasting time getting some unorthodox views through the senate when they could have been hitting the ground running on these proposals at the market hears about?

yes, we continue to have shocks like on shoring, deglobalization, we could have more tariffs, all areget inflation back to 2% and keep it there. in order to keep it there, we realize the federal funds rate is going to be higher, maybe about three sent in nominal terms going forward. lisa: we were just talking with a number of different people close to people in the trump orbit. gary cohn was talking about how immigration will be the first one to tackle. how do you factor that in given that was one of the reasons why you could see full employment and disinflation at the same time. dana: we don't know exactly what is going to happen. all we have our promises made on the campaign trail and what is being said over the airwaves. thinking about what could be the scenarios. we might have a renewed tariffs. those tariffs could be broad. if we see large amounts of people being reported or even the announcement of that, you could start seeing people leave their jobs and that would cause shortages in key areas. we don't know what is going to happen but certainly something we should look at in ou