peter tchir and margie patel as well.his is bloomberg "real yield." ♪ tom: we welcome all of you worldwide. i am tom keene in for jonathan ferro. not final thoughts but because of the extraordinary nature of the week, kathy jones gonna margie patel, peter tchir with us. we are diving into the ramifications of this for the little guy. i don't know whether the little guy is $2000 or $100,000 or even a million dollars. what does the little guy do, pushed around by these institutional realities? at the end of the day, it has not changed much, being diversified, understanding your time horizon, and making sure you have some safe assets. we have been emphasizing more on the safe assets lately because we are getting more defensive in equities and fixed income. but nothing has changed, you still need that diversification. tom: this is important, i'm going into the real yield here. stays within two years but i'm going off of the actuarial assumption. margie, you shocked me with the idea of percent or lower. how do we get there if

we want to advance this now and into the weekend with peter tchir. rilled that peter could join us on the mechanisms we saw this week within fixed income. we are thrilled kathy jones is with us with charles schwab. really interested in the desperation of savers and those looking to clip a coupon. from boston, margaret patel from wells fargo, with decades of experience in high-yield and fixed income space. let's dive right in. while we enjoy this weekend, what did schwab see in terms of what people actually did, kathy, what did flows look like? kathy: people were pretty calm. our clients had a lot of cash anyway, certainly fixed income investors have been sitting heavily in short duration securities despite urging them to take a little duration. there was not a lot of panic. people were pretty calm. we have seen these selloffs before and they rode it out pretty well. tom: margaret patel, you are the queen of opportunities. what have you seen in terms of a price back up in high-yield, is now the time to reenter high-yield? margaret: high yield is very a

of tvwith us, peter tchir securities.- of td the pollsters were sort of ahead of the polls. weaknesses and negative surprises seem to be adding up. nejra: how high is the risk of default? peter: it is probably too early to say. i think countries can use that as a tool. we've got to go through a lot more of the elections. spike the headlines today on argentina, it is not the biggest issue facing global markets. david: does this mean we want to explore emerging markets more broadly? peter: turkey is another country where there is a lot of political risk, but i think it is underwhelming how money people are considering that they are cozying up to russia. i'm avoiding certain emerging markets. turkey, to me, is a bigger problem than what we are seeing in argentina. academyeter tchir of securities stays with us. let's turn to italy. byhave read today a standing . the deputy prime minister matteo salvini is on the campaign trail after calling for an election that would hand him a majority in parliament. maria tadeo has been following this for us. an election could happen, but what

smart conversation after a historic week, margaret patel on the high yield and peter tchir on the statehis is "bloomberg surveillance." president trump has a phone call with president xi coming soon. the chinese officials saying the u.s. plan for additional tariffs has pushed the two off track in resolving their dispute. yesterday beijing vowed to retaliate saying u.s. levies are a violation of the trade truce. james, when you look at the trade concerns, is this the sell-off and further inverted yield curve a product of trade concerns or is it something else deeper? james: i think the market is right to have concerns over trade. that the ticipate deal will get cut is looking unlikely on the basis that china believes they'll get a softer time negotiating with the democrats were they successful with trump. francine: what is this about, i keep hearing this is u.s. versus china supremacy? james: absolutely. francine: if this is it will last 125 years. james: and continue to bubble along and surface in various ways. but it's correct to say china has not really embraced free trade in the corr