Transcript
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Good morning everybody. It's Sunday morning, eight o'clock. It is the Money
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Matter Show. This is Dean Greenberg, and for the next two hours we're
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going to talk to you about your
finances, how it is affected by the
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economy, politics, and the global
interaction of everything that goes on. It's
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been a crazy couple of week and
this week was pretty interesting, especially on
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the political level as we know,
and the markets kind of did nothing,
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and we will talk about that.
But where are we going? What are
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we doing? And we're going to
go make new hines. I keep saying
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we are, and I'm going to
explain to you why I think we still
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have that possibility. So for the
next I don't know, twenty some odd
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minutes, I'm going to do a
monologue here, the monologue I've been doing
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for thirty four years. It will
bring you insight to what I'm thinking,
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how I handle investments, what I'm
thinking as a portfolio manager, and what
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and who I am my thoughts,
because I believe if you understand who I
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am and how I think and what
I do, it builds a relationship over
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time. You can always go back
and listen to what we have to say.
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You can always think, did what
did he say six months ago?
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What did he say four months ago? Was he right? Was he wrong?
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What it is is truth, simplicity, truth, transparency. We use
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that word a lot, but a
lot of people don't understand what that really
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means. I talk from the heart. I give it to you straight,
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and when I want to change what
I'm thinking, I'm okay with that because
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as you get more input in life
and more things that happen, you change
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the way you think and what you
do. But the one thing I'm not
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going to change is I'm not going
to change my thoughts, all my feelings,
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or how I invest by voting for
Biden. There's no way after this
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thing this week that whatever it was
is going to change my mind. In
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fact, it questions me more,
makes me question more, I should say,
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of what and what we have become
is a nation. It's obvious that
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President Biden does not have a clue
on how to run the country. Unless
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he's being told, written, reading, he could not perform. So it
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makes me think who is running the
country. And you have all these pundits
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you saw it right afterwards, Democrats, liberals, republicans, conservatives, everybody
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was like, are you kidding me, that's who's running the country. No,
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we know it has Why are you
surprised on the way he was?
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So now I start thinking, which
is a setup by his own party to
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try to knowing what he's all about, to be able to come out immediately
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with talking points right across the left
side. We got to start thinking about
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getting somebody else. What's interesting is
my first thought was, Okay, if
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you do that, what's the process? Well, there was only one person
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and that was Brent You out of
all the stations and people I listened to,
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that actually told us the process.
He cannot resign as president, he
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says, because if he does,
Kamala Harris will be the one that steps
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in, and she's the one that
would run. And I think, as
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munch, people don't like Biden as
president, they like her a lot lot
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less. So he would have to
go ahead and not accept the nomination at
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the Democratic convention, and then there's
a whole process that all the delegates would
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have to go through to put up
who they would want until the vote actually
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occurred that he had enough votes that
person would be able to become the Democratic
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electee I want. And I kind
of think it'd be kind of cool to
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see the process in action. But
on the other hand, I don't want
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to wish for that. I want
Biden to run because anybody that wants to
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vote for Biden, to me after
what they saw, doesn't care about America
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until we find out who's really running
the party. If the Democrats were honest,
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they would come true and tell us
who's running that party, because then
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we know what their agenda is,
how they want to run it, and
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what they have up their sleeve.
Once they prop him up and put him
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in again. But remember, if
he gets in, there's a chance he
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doesn't make it through. The vice
president is going to take over, and
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if you think she's going to be
a puppet, I would think twice.
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I'm also embarrassed for his wife,
Jill Biden, and the rest of that
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family. I get you waited your
whole life to have this power. I
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get it, you've been in politics
forever. But to embarrass your husband to
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the point that he is ridiculed by
his own party, by his own friends,
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on a night that in the entire
world watched him. Is that the
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legacy you wanted for your husband,
And then you come out the next day
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on a campaign and you're up there
pounding the table, and then he comes
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up as angry Joe and starts reading
the teleprompter. We're not stupid, I
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hate to tell you, the American
people are not stupid. What happens behind
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closed doors with dignitaries and presidents and
dictators all around the world. What happens
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when they get together at these G
seven meetings and these world meetings. You
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think he's any different in a closed
meeting without a teleprompter, without someone telling
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him what to say. You think
he doesn't fall asleep or stares in the
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space. What you saw was the
real Joe Biden. And it's been this
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way for three and a half years. Remember he wouldn't even campaign last time.
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They kept him out of the limelight. So why did the campaign allow
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them to do this? And it
comes out that they wanted to do it,
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The Bidens wanted to do it,
and there's that rift between them and
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the rest of the party. Yeah, they love Joe, but most people
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don't think he should be president.
They know more than we do that he
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doesn't have the capabilities to functionality at
as eighty two year old to be able
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to handle it. But then who
and what is going on? And if
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you're voting for Biden, you're really
voting for someone you don't even know.
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I guess he's They're not going to
vote for Trump, they just might not
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vote. And that gives us the
ability to get somebody in that we believe
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actually has an agenda to move us
forward, not just for one or two
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or three years, but for ten
and twenty. You'll hear lies on both
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sides, and they call each other
lying to me. That's disgusting. I
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hate it. I know people exaggerate, We all exaggerate at times, we
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all forget exact details of everything.
When you're in the middle of giving a
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speech like that, I get it, and all that stuff I get.
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But if they're really lying on both
sides, we have a real problem.
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Things get debunked, but then they
get brought up. All Biden's campaign is
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running on is telling you how bad
Trump is. He's not running on any
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of his records. And when he
says the economy is better, of course
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it's better. We were in a
pandemic. We shut down the world,
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we shut down America. We put
mandates on people that couldn't go to work.
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What do you think we had such
high unemployment. So to say we
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brought unemployment down, of course you
did, nobody was working there for six
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months. But you also put mandates
on that we look back at that were
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wrong. Decisions were wrong. I
don't even blame you, because we were
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in a scenario that nobody really knew
how to handle it. So to sit
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there and tell him he handled the
pandemic badly, that Trump handled it badly,
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to me, not acceptable, not
acceptable. And the reason it's not
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acceptable is that I really don't understand
how aware they get to that point.
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So you're looking at everything and you're
trying to figure out what to do here.
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Right, they blame each other for
everything, and it's just plain wrong.
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But we as Americans have to sit
there and listen to this. It
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amazes me that what we're coming down
to is watching a debate, which finally
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we have a debate, and we're
realizing people realizing for this that while president
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of the United States can't talk or
or comprehend what's going on without a teleprompter,
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So he start thinking about all these
things, right, and he's blaming
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everyone. He inflation, he inherited
at nine percent, all these other things
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that he'd World War one, World
War II, all these things that he
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baffled out. I get it.
It's a lot of information that was given
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to him, that was filtered through
him, and he had to remember on
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how to present it, which he
did not do a very good job.
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So everyone comes out, Sannan Fox, every pundit comes out and wants to
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get rid of them. They finally
decide how they're going to get rid of
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it, that they want to do
it well. The next day Obama comes
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out and says no, because that
night his wife said no. He said
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no, So you can't get rid
of somebody that the people supposedly voted for.
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I want that to happen, because
here's what's going to happen. We
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know then if that's the case,
we could start looking at how to invest
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and once we would know who the
winner is. If Trump gets in,
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he will be pro merger, he'll
be anti China, he'll be pro energy,
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he'll be anti Mexico. He'll be
lowering taxes, less regulation, and
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coming up with answers for the border, for immigration, and on how to
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move our economy forward. Biden gets
and you know he's gonna have high taxes.
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You know, he wants more regulation. He's gonna be restrictioned on energy,
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land, he's gonna have open borders, and he's gonna have freebies.
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He will, he'll, he'll figure
out a way to stop people having to
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pay for student loans, and illegal
immigrants will keep getting money. There's one
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thing that nobody picked up or is
even discussing, and I really want to
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find out the answer to this,
and not one not I haven't heard one
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media person, I haven't heard one
financial person. I haven't heard anyone talk
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about. There's one comment that Trump
said that I want to know if it's
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true. He discussed the fact that
the illegal immigrants getting part of our social
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security. I don't know. If
that means we're taking money from soci Security
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and giving it to them, I
don't know. I mean if that we're
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giving checks to them, I don't
know, if we're putting them on social
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Security, if they're over the age
of sixty five or sixty, I don't
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know. I know this. Everyone
glanced over that comment. Now one person
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called it a lie. Nobody fact
checked it. The commentators didn't bring it
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up, and Biden didn't say,
no, that's not true. So if
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that is true, which we need
to find out. Then we are being
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sold down the river because our social
security system as it is today can't function.
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Can that function? Bid? Then
solution is, let's raise taxes on
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the rich. I can't tell you
how many times that does not work unless
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Congress changes the tax code. The
tax code allows for these billionaires that he
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talks about, these millionaires, He
talks about all these people begging all this
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money to not pay all their taxes
the way they want them to pay the
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taxes. They say they're not paying
their fair share. Their fair share is
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legal. Whatever they're paying is their
legal amount of taxes. If you don't
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like it, stop talking about taxing
unrealized gains because that's unrealized. Really,
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that will ever happen. Nobody in
Congress is going to pass taxing unrealized gains
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onwealthy individuals. How will you ever
do that and control that? Increasing more
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law enforcement for enforcing the tax code
as we have now might get you some
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not going to get you a lot, because once again, the people with
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the money still hire the attorneys,
the accountants, the planners to be able
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to absorb, to put their money
away where they don't have to pay as
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much taxes change the tax law carried
interest had an opportunity. They didn't do
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it when it was one more vote, and Cinema didn't do it because she
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claims it would hurt the real estate
industry. Well, how are you ever
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going to change that. The wealthiest
people in the in the world own a
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lot of real estate. And the
reason they own a lot of real estate
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is the tax code allows them to
get depreciation and then then they wait and
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don't sell it until they pass and
they get a stepped up basis for the
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next generation. And if you got
that type of wealth, why would you
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ever sell your assets that have appreciated
hundreds of millions of dollars so you don't
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have to pay taxes, but you
can borrow money against it, which is
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a write off to you. Go
from there. Wealthy people like that do
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not get W two's, especially in
the millions and tens of millions and stuff
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like that. They'll get k they'll
get ten ninety nine's, they'll get k
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k ones, and they'll pay their
taxes on what they have according to the
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law. So I want to stop
listening to this unrealistic rhetoric about they don't
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pay the freshare now they're illegally not
paying taxes. Yeah, go after them,
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find them and start with your son. Start with your son who you
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left off with uh uh with the
uh with his taxes to go over some
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gun deal which he still might go
to jail for. But he allowed the
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statue of libertations to run out on
his tax situation. But there's fraud.
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And I thought, with fraud,
you can go back and get it.
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Your own son didn't pay the taxes. And you know what, Joe,
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if you looked into your own tax
situation and the money you've gotten from different
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places overseas and this whole convoluted deal, you haven't paid your taxes probably either.
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And you know what. The reason
I could say that it's real simple.
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You even said on Thursday night.
You came in as the youngest politic
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to one of the youngest politicians ever, as I said, and you're leaving
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is the one of the oldest.
Well on the my scenario, yeah,
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probably only averaged about one hundred and
twenty five thousand dollars a year over those
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times. Because at the beginning you're
probably making thirty and now you're probably making
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whatever it is, four point fifty. Okay, so call it one hundred
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and fifty thousand. People that make
one hundred and fifty thousand dollars a year
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for thirty forty years do not become
multi multi multi millionaires and live the lifestyle
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you have. I know they don't
have corvettees in their garage that they keep
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presidential and vice president records in.
I know they don't have houses at the
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beach and the house and another place
at the house in another place. I
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know that for sure, you didn't
make the money, Joe, Where'd you
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get it? And nobody wants to
answer those questions. And that's what's wrong
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with our media, and that is
what's wrong with America. We watched it
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on full display on Thursday night.
So where do we go from there?
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Well, the one thing I can
tell you is I don't want I don't
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want someone to win in the election
with other people running this country. And
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that's what you get with Biden.
I'm glad he's put his foot down and
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says I'm running if we lose to
that they have something up their sleeves.
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And that is not an election denier. That's just saying the truth. Because
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I cannot believe everyone I've talked to
say, how can I have a vote
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for him now unless they change their
mind, unless there's something happens between now
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and then, I just can I
just think that a lot of people just
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won't vote that would normally vote for
him, period, and they probably allow
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that to happen to groom somebody afterwards
and let all these things out of bubbling
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under the surface. And we know
that there a recession is coming at some
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time. The debt is too high. Let's throw it on Trump, make
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them look like a disaster with the
Republicans, and we'll come back in after
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that and take it and take over, and then we'll be able to get
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all these immigrants that are coming in
illegally, to be able to figure out
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a way to get them in our
system because under the pretense of we need
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more workers, and then get them
there be able to vote. We got
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a lot of problems, people,
and the world has a lot of problems,
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and a lot of this has come
from us wanting everything at our fingertips.
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But with that you get a lot
of disinformation on everything. Social media
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is so bad when it comes to
giving you the truth. You don't know
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anymore. Everyone I talk to says, I can't even reach I can't even
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do stuff. How do you know
if it's true or not? You hear
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all these things about stuff, and
then you look it up and it's like,
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there's no news on that. And
where do the kids get it?
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Where are the kids in their twenties
and thirties, where do they get all
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their news? They get it on
their phones. That's it. That's it.
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So you can't blame them if they
know it or not. So that's
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where we are. We have markets
at all time new highs. Okay,
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they went up to fifty five twenty
something again on Friday before they pulled back.
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I still believe the markets are going
high. I still believe we're gonna
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get over fifty six hundred, and
it could happen before the end of August.
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I think then we'll have a pause, and then I think we'll have
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a big market rally afterwards. And
I think after the first quarter next year.
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We got to see where we're at
and worry why Because I know that
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there's in the pocket of the effect. It's lower in interest rates. Number
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one, and I'm gonna go into
more detail as we go through the show.
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Number two, eight trillion dollars is
sitting on the sidelines in money markets
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and and bonds. Eventually interest rates
come down, those don't look so good.
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People put the money back into the
markets and look for opportunities as it
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goes higher. Stay tuned. We
have a lot to talk about. I
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do appreciate you listening to The Money
Matter Show with Dean Greenberg and the rest
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of the crew that I bring in. Have a good day. Welcome back,
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00:22:17.200 --> 00:22:18.799
everybody. This is the Money Matter
Show. This is Dean Greenberg.
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00:22:18.880 --> 00:22:23.799
I got Dave Sherwood, I got
Sebastien, and I've got Todd. How
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are you guys doing. It's a
fun days, all right. Well,
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we had a crazy week this week
and we're going to talk about it.
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We're going to talk about the markets, and I definitely want to talk about
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more on the politics side, on
how that's going to affect the certain different
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things in the markets and and and
all, because it's going to be it's
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going to kind of be exciting the
next few months. You talked about the
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debate, I assume, and yeah
we did, but uh, before we
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do that. This is brought to
you by Greenberg Financial Group. Greenberg Financial
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00:22:53.839 --> 00:22:59.319
Group is both a registered investment advisory
and a broke Adala registered with the SEC
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00:22:59.680 --> 00:23:03.519
member the Fender and members of PIPIK. On the show, we talk about
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00:23:03.519 --> 00:23:07.200
different products, strategies and different ideas. We all have our own opinions,
258
00:23:07.680 --> 00:23:12.759
but everything has risk. Understand your
risk prior to investing. It's very,
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00:23:12.920 --> 00:23:21.240
very important that you understand risk tolerance, understand allocation risk, interest rate risk,
260
00:23:21.839 --> 00:23:29.240
market risk, capital risk, missing
out risk, being being too greedy
261
00:23:29.319 --> 00:23:33.039
risk, you know, being too
verish risk or everything has risk. Understand
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00:23:33.079 --> 00:23:37.000
the risk prior to investing. All
right, so uh, you guys impression
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we're going straight into the debate.
Well, the debate is all that people
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talked about for the last four days. That's true. That's true. It
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was clearly the two distinctly different individuals
with very different energy levels. I thought
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Trump had he composed himself in a
good manner, to be quite honest with
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you, I thought I did a
good job without Biden was struggling, and
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that's probably the latest he's been up
since New Year's Eve, so that's probably
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part of it. Started at nine
o'clock in Atlanta, right, I feel
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that I'm gonna give some kudos to
Jake Tappa and Dana Bash. I thought
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They did a really really good job
as moderators compared to what I've seen over
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the last few years. Daven Trump
today said that they were fair, the
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questions were great. When they didn't
answer the questions, they would come back
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and say, President, we got
thirty nine seconds. This was the question
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I asked, can you please answer
this question. They weren't upset. They
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didn't come right out and hit Trump
right away with July sixth. They didn't
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come out and hit the border right
away. They they did a lot of
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things to bring it along. I
thought they did a great job. I
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didn't think the microphone cut off was
going to be great. I thought it
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was fantastic. Okay. I actually
think it helped Trump. It definitely helped
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Trump, okay, because he didn't
have to feel like he had to defend
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himself all the time. It's off, let him talk, he'll come back,
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he can collect his thoughts and talk. Thought it was great. I
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thought on the policies and stuff,
you know what, it's the striking difference,
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obviously. That's what I want to
talk about with these guys, is
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the fact that if Trump gets in
versus Biden, so let's start with taxes,
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Okay, Okay, Trump gets in, we get an extension of the
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tax cuts, right, and he
will find other ways and try to talk
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about other ways the lower taxes to
increase revenue. He has to be very
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cognizant of where we are on the
deficits. We've got to figure out ways
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to start cutting the deficit. He's
not stupid. He knows the spending has
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to be cut in certain ways and
the stuff. Maybe with the fact that
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he has you know, this is
the last time he can be presidenting.
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He doesn't have to be a drunken
sailor and be spending so much because he
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doesn't have to get reelected. Well, and he also doesn't have a pandemic,
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right, which was a lot of
that eight trillion dollars that they talked
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about last night went pandemic. A
lot of Yeah, well was it?
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It started off at four trillion,
wasn't it. Yeah, just giving it
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out to people, Yeah, yeah, I mean part of one of Biden's
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points was saying that the economy was
terrible when when when Trump left offense like,
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well, yeah, it's the pandemic. So, I mean, there
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was no jobs, that the entire
economy was shut down. How you're going
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to have a good economy, and
you kind of got rewarded on the other
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side of the token win and they
came back out of the pandemic. So
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your numbers are going to look way
better in the first year because you're coming
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zero to one is one hundred percent
increase. We talk about this all the
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time, Dave. So statistics are
not always showing you the true picture of
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what happened. Absolutely, absolutely,
the Democrats scrambling on a Friday to figure
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out what happened to what happened next. Well, let's say on the tax
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situation, okay, with Biden automatically
would get higher taxes. Well, because
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the Trump tax He did make an
interesting statement though last night about the taxes.
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He said, if it's under one
hundred and seventy thousand, he's not
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going to raise it. So potentially
what he will do is only raise it
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for the people above one hundred and
seventy He said that that mark, right,
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but then you still have to get
that approved. Oh okay, and
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so that market trader. He's also
said it's not going to raise taxes for
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over under four hundred thousand. Listen, when you have inflation, you have
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taxes. When you have when the
biggest thing he was talking about is his
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healthcare right and I've talked about this
now for a month. That the healthcare
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that he says that the maximum anybody
of Medicare will pay now is two thousand
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dollars for drugs. Sounds great,
right, right? Who's going to pay
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for that? The rest of the
Americans who that have a supplement plan and
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insurance through the insurance companies, Because
if you think the insurance company is going
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to allow them to just take that
hit on everyone, they will not do
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that. And so that's where it's
going to come from. We're going to
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see higher premiums in order to pay
for quote his tax break for Americans.
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And let's face it, guys,
if you don't have the money to be
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able to pay for it, you
didn't have to pay for it anyway,
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you know. So there's a if
you if you couldn't come up with the
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eight thousand, how are you going
to pay for it? So that's the
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way I look at it. It
saves you, but it's not going to
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save you. On the other side, there's going to be other taxes that
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he will put out there. There'll
be climate taxes, there'll be everything every
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resolution they do, every every try
to any type of law they pass.
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There's other ways to do it,
So we could say I didn't raise taxes
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on people in the four hundred thousand. The biggest one that will go away,
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which I hope even if Biden gets
in they keep, is the twenty
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percent for these small businesses. That
is that would hurt a lot of a
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00:28:48.799 --> 00:28:51.920
lot of businesses. Yeah, a
lot of small businesses, which is the
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heart of America and a kind of
what we do. Because it's twenty percent
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off the top of the adjusted gross
period. You know what I think is
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00:29:00.920 --> 00:29:03.759
the most interesting thing about it.
Also was when Trump was talking about the
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international and all the money spending,
which kind of is in line with the
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taxes and the whole deficit that we
have right now. He said, Joe,
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00:29:11.079 --> 00:29:12.519
you got to ask the other countries
to raise money. You don't just
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say that you're going to raise all
the money yourself. He's like, the
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00:29:17.039 --> 00:29:21.359
reason I I strong armed them and
said I'll us will leave NATO. It's
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what Trump said. He's like,
well, we'll leave NATO if you guys
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don't come up with some money.
Next day, they raised billions, one
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00:29:25.799 --> 00:29:27.440
hundred They never seen anything like it, he said, right, so that's
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00:29:29.000 --> 00:29:30.960
Trump wants out of NATO. No, yeah, no, I was like,
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00:29:30.960 --> 00:29:33.960
I'm not ready to pay their fresh
share exactly, climate accord exactly skewed
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00:29:34.079 --> 00:29:38.079
so dramatically hundred percent. You know, then I understand why. And so
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I think that's a big points like
climate, Yeah, that makes a perfect
355
00:29:41.160 --> 00:29:45.359
sense, like why are we paying
for everyone? Every other country should also
356
00:29:45.400 --> 00:29:48.039
pitch in if it is a global
concern, right, this should be a
357
00:29:48.039 --> 00:29:52.960
global concern, not American concern.
And on that global concern, he kept
358
00:29:52.960 --> 00:29:56.480
pushing the fact, well, if
they take over the Ukraine, where's the
359
00:29:56.480 --> 00:30:03.440
next place to going Poland they kept
saying hungry some case. Do you think
360
00:30:03.519 --> 00:30:07.839
that Putin is that crazy that he
doesn't think that all of Europe, with
361
00:30:07.960 --> 00:30:15.880
today's technology would be fighting back against
that every right, Okay, which I
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00:30:15.960 --> 00:30:18.960
love but I would love to see
though, and I and I and he
363
00:30:18.079 --> 00:30:22.880
said it many times, I will
have that war done over three years before
364
00:30:22.920 --> 00:30:30.400
I even take off the market elected. He's said a lot of things at
365
00:30:30.440 --> 00:30:33.000
the ninety percent of them have gotten
done. The only thing that never got
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00:30:33.039 --> 00:30:38.240
done directly whatever when he said pay
for the boarder, he's talking about the
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00:30:38.240 --> 00:30:42.440
the at the eight twenty eighth June, but he had waves to get it
368
00:30:42.480 --> 00:30:45.960
done and doing it the other way. The other thing I thought was big
369
00:30:47.000 --> 00:30:49.160
time back and I think it works. Just said which is the most It
370
00:30:49.200 --> 00:30:53.119
never took the tariffs off one point. But yet on the other hand he
371
00:30:53.200 --> 00:30:56.039
keeps talking about, well, you're
gonna you're gonna put tariffs on everything.
372
00:30:56.039 --> 00:31:02.079
That's gonna hurt America. No,
it's not that. One was a fine
373
00:31:02.119 --> 00:31:07.359
line between America first and rates came
and giving everything away so you can end
374
00:31:07.400 --> 00:31:11.799
of the day everything higher. So
he just keeps giving everything after thee But
375
00:31:11.960 --> 00:31:15.359
you know, if you just looked
at domestically, member, he gives so
376
00:31:15.519 --> 00:31:22.559
much money away to people that that's
a big reversal. Why would I and
377
00:31:22.640 --> 00:31:26.759
not taking care of a homeless happened? That takes care of actually eventually in
378
00:31:26.680 --> 00:31:30.799
these bad areas in the in the
in the very very poor places, and
379
00:31:30.119 --> 00:31:33.480
something they do a short period of
time. But it's no different than Janet
380
00:31:33.559 --> 00:31:38.759
Yellen coming out this week and saying
did finish a June higher wages a resident
381
00:31:40.000 --> 00:31:45.279
that it doesn't affect months to go
to Crystal Hi is the only down this
382
00:31:45.440 --> 00:31:49.000
one should know it's the last month
a year for the market. You know
383
00:31:49.039 --> 00:31:53.319
what she is. She's also the
one who said thirty four trillion dollars.
384
00:31:53.319 --> 00:31:56.720
With that said, it managed quite
a bit better than every month, and
385
00:31:56.799 --> 00:32:00.319
the second best month is April.
I mean, that's the only down month
386
00:32:00.400 --> 00:32:06.559
this year. You saw a striking
difference between the two. His is a
387
00:32:06.720 --> 00:32:10.839
dried He did this clearly not an
like have some of that PC never was,
388
00:32:12.599 --> 00:32:15.319
doesn't seem Next week we got a
very strange week. Next week again
389
00:32:17.000 --> 00:32:22.079
is a half a day of trading
make surity ahead of the holiday off and
390
00:32:22.119 --> 00:32:27.160
whether anyone will come in on Secriday
or not up in the air, something
391
00:32:27.160 --> 00:32:29.400
I think, and you don't keep
paying. We're not going to see a
392
00:32:29.440 --> 00:32:34.200
lot of one week with low volume. You can't see until it'll fix it.
393
00:32:34.240 --> 00:32:38.960
But that looks like a very quiet
holiday laden week. Next week we
394
00:32:39.039 --> 00:32:45.079
do get the jobs out on Friday
morning, and that's it's not in between
395
00:32:45.119 --> 00:32:50.000
the fourth of July holiday and and
and the weekend. That'll be opening to
396
00:32:50.039 --> 00:32:55.720
see how with us react to that
report. Gold excuse me all this week
397
00:32:55.799 --> 00:33:00.039
was up sixty cents again, not
much the movement on anything, as we
398
00:33:00.599 --> 00:33:07.079
American public Gold was up sixty dollars, not much a bitcoin todd five percent
399
00:33:07.279 --> 00:33:09.680
down getting down close to sixty grand
again, Yeah, I love it here.
400
00:33:10.119 --> 00:33:15.519
It did blow sixty a week or
ten days ago. Man, it
401
00:33:15.680 --> 00:33:17.960
just snapped off of that. That
was good support. Yeah, like fifty
402
00:33:19.000 --> 00:33:21.519
eight or something. Yeah, yeah, fifty eight to fifty nine in there.
403
00:33:21.599 --> 00:33:24.000
So that's a wild one Treasury yields, so it didn't do much.
404
00:33:24.319 --> 00:33:30.000
We're still at a forty five basis
point inverted yield curve with a ten year
405
00:33:30.039 --> 00:33:32.559
at four thirty four and the two
year at four seventy nine. What ed
406
00:33:34.079 --> 00:33:37.920
What a challenging time for I was
thinking this during the week, What a
407
00:33:37.039 --> 00:33:44.799
challenging time for money managers? And
probably the window into how challenging it is
408
00:33:44.799 --> 00:33:52.759
is Nvidia. Uh and Vidia became
the most valuable company in the world on
409
00:33:52.839 --> 00:33:59.920
June twentieth and then immediately went into
a three day sixteen percent plunge before it
410
00:34:00.039 --> 00:34:05.599
bounding seven percent last Tuesday. So
the question becomes by seller hold, if
411
00:34:05.640 --> 00:34:09.239
you're a money manager and you have
Nvidia, do you lighten up? If
412
00:34:09.239 --> 00:34:13.840
you don't have Nvidio, do you
buy it? Do you just ride it
413
00:34:13.880 --> 00:34:19.559
out? It's a very challenging time
when you're getting new all time highs in
414
00:34:20.119 --> 00:34:24.960
certain indices and then these huge pullbacks. There will come a time, I
415
00:34:25.000 --> 00:34:29.239
said this last couple of weeks.
There will come a time when we look
416
00:34:29.280 --> 00:34:31.880
back and say, why in the
heck didn't we sell some of the Nvidia
417
00:34:32.320 --> 00:34:36.840
when it was up there? I
don't know where up there is. Yeah,
418
00:34:36.840 --> 00:34:38.280
I think we've talked about this,
you and me, Dave of saying,
419
00:34:38.519 --> 00:34:42.960
you know, why does it make
sense that na Video has the same
420
00:34:43.000 --> 00:34:46.679
market cap as companies like Microsoft and
Apple? Does it make sense that Vidia,
421
00:34:46.800 --> 00:34:52.239
a one product company essentially became the
largest company in the world. Absolutely?
422
00:34:52.239 --> 00:34:55.800
Not right, Actually not. It's
it's just because if you think about
423
00:34:55.880 --> 00:35:01.400
business, right, if you're reliant
on one that one thing is it can
424
00:35:01.440 --> 00:35:06.320
go against you or Apple. It's
they have so many channels. Microsoft,
425
00:35:06.360 --> 00:35:09.199
they have so many channels that I
just can't see how n Video would be
426
00:35:09.199 --> 00:35:13.360
more valuable as a company than those
two. I think we talked about that
427
00:35:13.440 --> 00:35:15.559
last week, a week before it
actually last week, and when it was
428
00:35:15.599 --> 00:35:20.800
becoming the most valuable company in the
world, like really, right, or
429
00:35:20.840 --> 00:35:23.840
when XLK got rebalanced and they brought
down the allocation of Apple down from twenty
430
00:35:23.880 --> 00:35:27.960
percent down three percent, right,
why are you doing that? And then
431
00:35:28.000 --> 00:35:32.679
that reallocation process. N Vidia dropped
sixteen percent and the XLK, which is
432
00:35:32.760 --> 00:35:38.960
seventy two billion, I believe needed
to buy a ton of Nvidia and Vidia
433
00:35:39.039 --> 00:35:44.280
dropped sixteen percent. So what would
it have dropped if they hadn't been in
434
00:35:44.320 --> 00:35:47.039
there buying? Very true. We
got a question written in this week.
435
00:35:47.079 --> 00:35:51.079
Actually, yeah, So if you
guys ever need a question answered, you
436
00:35:51.079 --> 00:35:53.480
could either give us a call this
one actually got called in. You could
437
00:35:53.480 --> 00:35:59.119
also email us at contact at Greenberg
Financial dot com. But this she's not
438
00:35:59.159 --> 00:36:02.760
a client. They were asking about
Walgreens, Walgreens Boots Alliance, what do
439
00:36:02.800 --> 00:36:07.480
we do with this stuck? They
have it an average cost thirty six dollars
440
00:36:07.519 --> 00:36:10.280
and they got absolutely hammered this week
down trading under eleven or twelve bucks right
441
00:36:10.280 --> 00:36:15.159
now. I don't think it looks
good for that company, to be quite
442
00:36:15.199 --> 00:36:20.320
honest with you, they're really struggling. They brought on a new CEO about
443
00:36:20.320 --> 00:36:24.639
what six months ago now. The
new CEO began by purchasing a bunch of
444
00:36:24.679 --> 00:36:30.159
shares. They were down fifty percent
over the last twelve months, and despite
445
00:36:30.199 --> 00:36:36.599
this turnaround specialist. It opened down
another twenty five percent on Thursday to a
446
00:36:36.639 --> 00:36:39.920
thirty year low. They're just closing
more and more stores. That shoplifting thing
447
00:36:40.000 --> 00:36:45.239
is trouble for them. There's also
talks about them being removed from the NASDAQ
448
00:36:45.280 --> 00:36:49.880
one hundred. They have the lowest
allocation towards the in the NAZAK one hundred.
449
00:36:50.119 --> 00:36:52.440
They're going to be replaced by super
micro computer. I couldn't even think,
450
00:36:52.440 --> 00:36:55.039
you know, it's amazing. That's
what I was wondering too. Why
451
00:36:55.079 --> 00:37:00.000
is Walgreens in the NAZA. Walgreens
was in the Dow Jones and they remember
452
00:37:00.079 --> 00:37:04.920
that was very briefly, but it
was supposed to be the stock for twenty
453
00:37:04.960 --> 00:37:08.119
twenty four, replacing ge right,
well not only replacing it, but they
454
00:37:08.119 --> 00:37:13.400
were the worst performer. They were
the dog of the Dow, and they're
455
00:37:13.400 --> 00:37:15.079
supposed to do it. And when
they they did, they took them out
456
00:37:15.119 --> 00:37:20.960
of the Dow. Yeah, thankfully. Yeah. That's why I say you
457
00:37:21.039 --> 00:37:24.719
have to own some some of the
the indexes, right, because if you
458
00:37:24.719 --> 00:37:28.599
don't own the indexes, you miss
out on these new hives. And so
459
00:37:28.719 --> 00:37:32.320
to that listener, once you have
you know, the company being taken out
460
00:37:32.360 --> 00:37:36.480
of the indexes to be replaced by
another. That's generally not a good sign.
461
00:37:37.119 --> 00:37:39.199
No, And they cut the dividend
in half about six months ago.
462
00:37:39.239 --> 00:37:43.079
I think they're going to have to
eliminate it in August. This would be
463
00:37:43.119 --> 00:37:47.119
my guess based upon the way things
are going they've been. The current dividends
464
00:37:47.119 --> 00:37:51.119
still about nine percent based upon the
drop and the price. But how was
465
00:37:51.119 --> 00:37:53.280
that sustainable? That's not sustainable.
They're not earning any money. How do
466
00:37:53.320 --> 00:37:55.800
you go? How are you gonna
keep paying? The TVs was also down
467
00:37:55.800 --> 00:38:00.280
four percent respectively on that day.
Just not a good look for those companies.
468
00:38:00.280 --> 00:38:05.119
So don't they need to shift?
Kind of a related healthcare thing,
469
00:38:05.159 --> 00:38:08.400
Dean was talking about insurance companies,
and I was thinking about these weight loss
470
00:38:08.440 --> 00:38:12.400
drugs, you know, the g
LP one drugs that is all the rage,
471
00:38:12.480 --> 00:38:16.000
very expensive, many insurance companies not
covering it. Most insurance companies not
472
00:38:16.039 --> 00:38:22.800
covering However, a recent report from
the International Foundation of Employee Benefit Plans says
473
00:38:22.840 --> 00:38:28.679
that about one third of corporate heart
health plans I'm now covering the drug.
474
00:38:29.000 --> 00:38:30.920
Yeah, I wonder if it's for
weight loss purposes or if it's for sleep
475
00:38:30.920 --> 00:38:36.320
apnea or trying to make these people
fertile if they try to bring any points
476
00:38:36.320 --> 00:38:39.360
in case, well, if why
insurance coverage becomes available, you wonder what
477
00:38:39.440 --> 00:38:43.880
is going to do to health insurance
premiums for the rest of us, because,
478
00:38:43.920 --> 00:38:45.760
like Dean said, they're not in
the business of paying claims. They're
479
00:38:45.760 --> 00:38:50.760
in the business of collecting premiums.
Are they to Did you say that's starting
480
00:38:50.800 --> 00:38:53.880
to You said a third of all
benefit plans now cover the weight loss drugs.
481
00:38:53.960 --> 00:38:58.599
Okay, but you got to look
at me like that the longer part
482
00:38:58.639 --> 00:39:04.480
of that, okay, Right,
they are they covering? Are they covering
483
00:39:05.400 --> 00:39:12.079
ozempic olagovia or are they covering the
generic? Because a covering the generic many
484
00:39:12.119 --> 00:39:15.119
times that the general for sure.
Okay, sure, And that's what you
485
00:39:15.199 --> 00:39:20.480
don't know by just hearing what they're
doing. The generics are covered most of
486
00:39:20.519 --> 00:39:23.920
the time. The article was talking
about the g l P one drugs that
487
00:39:23.960 --> 00:39:27.440
and that's what they call the generics. I mean you could go on,
488
00:39:27.639 --> 00:39:30.719
uh you know that whatever that hers. Yeah, there's so many different ones.
489
00:39:30.719 --> 00:39:35.800
It's just like it's just like vi
aguin sialis sure. I think it's
490
00:39:35.880 --> 00:39:37.880
the point still stands though it increase
premium to the right. But it's so
491
00:39:37.960 --> 00:39:43.320
much cheaper. Okay, the other
part is so much cheaper than it is
492
00:39:44.079 --> 00:39:46.039
than the other part, so it's
easier to cover. But compared to average
493
00:39:46.079 --> 00:39:52.280
medicines, I don't think it's still
is cheaper three under bucks a month,
494
00:39:52.360 --> 00:39:55.519
Yeah, it's still way more expan
the average medicine, but compared to one
495
00:39:55.519 --> 00:40:00.760
thousand or fifteen hundred. It doesn't
matter if you don't have But the other
496
00:40:00.840 --> 00:40:04.159
side they're looking at too, and
the looking at it longer term. If
497
00:40:04.159 --> 00:40:06.960
people are losing weight, then they're
not going to have the hypertension, they
498
00:40:07.000 --> 00:40:10.599
won't have the diabetes, they won't
have other things that they that they they
499
00:40:10.960 --> 00:40:15.519
paid out a lot of money for. That's certainly the least approach, right,
500
00:40:15.559 --> 00:40:20.039
Well, the only way you're going
to know that is by doing it
501
00:40:20.400 --> 00:40:22.880
well. Right, But we've also
know that you lose bone, you lose
502
00:40:22.920 --> 00:40:27.679
muscles, so potentially that has other
health impacts as well. So exercising you're
503
00:40:27.719 --> 00:40:30.280
not losing that. Also, you
absolutely are losing that. That's what the
504
00:40:31.079 --> 00:40:35.159
absolutely speaking a week of you,
they actually got approved for long term weight
505
00:40:35.199 --> 00:40:37.440
managements in China. The drug is
finally going to be available to patients with
506
00:40:37.480 --> 00:40:42.800
a body mass index of thirty,
which is a threshold for obesity. So
507
00:40:42.920 --> 00:40:45.880
now that's going to start going into
China. You got Novo they put I
508
00:40:45.880 --> 00:40:49.840
forgot how much money behind their new
production facility. But hopefully that's I guess
509
00:40:49.880 --> 00:40:52.880
to some of the users of the
drug, it will make your costs lower.
510
00:40:52.000 --> 00:40:55.119
That reminds me of something where I
looked at a chart of why did
511
00:40:55.239 --> 00:41:00.639
fine wine explode in twenty ten is
because that's the year where China got real
512
00:41:00.760 --> 00:41:02.360
rich and they were able to spend
a whole much money on luxury goods for
513
00:41:02.400 --> 00:41:06.360
like the first time. So sometimes
when these countries come out of like their
514
00:41:06.360 --> 00:41:08.360
third world status and they become real
rich for the first time, they start
515
00:41:08.400 --> 00:41:15.679
buying these luxury goods and things like
that. A right, we gotta we
516
00:41:15.719 --> 00:41:20.239
gotta wrap up this on the hold
on the hold break. Hey, thanks
517
00:41:20.239 --> 00:41:22.599
for listening. It's a Money Matter
show. We got a whole another hour,
518
00:41:22.880 --> 00:41:25.480
and don't forget we got Saturday shows. We're gonna talk about that when
519
00:41:25.519 --> 00:41:29.320
we get back and let you know
everything we have for you. Thank you
520
00:41:29.480 --> 00:41:32.000
for listening. Welcome back to the
Money Matter Show. My name is Sebastian
521
00:41:32.000 --> 00:41:36.119
Borseni. I'm here with David Sherwood, Dean Greenberg, and Todd Glick.
522
00:41:37.199 --> 00:41:40.760
So this week we had the dal
Jones down point one percent, SMP down
523
00:41:40.800 --> 00:41:45.280
point one, the NASDAC up point
two, the Russell two thousand up one
524
00:41:45.360 --> 00:41:47.920
point three percent, and the equal
weight it was downero point seven percent.
525
00:41:49.440 --> 00:41:52.920
Got much of a movement. Yeah, but again that divergence is amazing.
526
00:41:52.960 --> 00:41:55.760
The equal weight to S and P
five hundred up four the s and P
527
00:41:55.840 --> 00:41:59.920
five hundred up fourteen, that's just
the tech talks. Yep, that's just
528
00:42:00.119 --> 00:42:05.079
the textocs. Unless you're overloaded in
textocks, you're not up fourteen. No,
529
00:42:05.280 --> 00:42:07.400
if you have value stocks, you're
not seeing that. No, it's
530
00:42:07.400 --> 00:42:10.840
amazing. Yeah, we were talking. We've talked quite a bit about it.
531
00:42:12.039 --> 00:42:17.360
Actually made fun of the Tesla truck
that and I think probably I got
532
00:42:17.360 --> 00:42:22.440
to a skew it on this because
when Elon first brought out the Tesla truck,
533
00:42:22.920 --> 00:42:25.199
he brought out a semi. Right
when we first looked at the Tesla
534
00:42:25.239 --> 00:42:30.119
truck, it was a semi.
We've joked about the Tesla truck hapvage just
535
00:42:30.159 --> 00:42:34.599
five hundred mile range, while the
fully fueled diesel can go like two thousand
536
00:42:34.599 --> 00:42:38.000
Miles. Who's gonna buy one of
these? My friend John who listens to
537
00:42:38.039 --> 00:42:43.920
the show. I saw him on
Timma Mock last Saturday, and John said,
538
00:42:44.840 --> 00:42:47.280
it's not semis. It's not gonna
be used for semis. It's gonna
539
00:42:47.280 --> 00:42:51.599
be used for short haul vehicles.
The Tesla trucks are going to be more
540
00:42:51.599 --> 00:42:57.119
of the Pepsi delivery trucks and the
Budweiser delivery trucks free too lay that you
541
00:42:57.199 --> 00:43:00.000
see around town, which they still
need a range for, not as you
542
00:43:00.000 --> 00:43:04.320
don't need long haul range, right, which is what we've kind of been
543
00:43:04.679 --> 00:43:07.639
been picking on them and engaging it
off. Yeah, so I think you
544
00:43:07.679 --> 00:43:10.960
know how much Solis battery is gonna
cost. Think about in your car just
545
00:43:12.000 --> 00:43:15.239
going short range when it's hot or
the A condition is. On those big
546
00:43:15.239 --> 00:43:20.199
trucks, those batteries are going to
be a fortune. No. No,
547
00:43:20.239 --> 00:43:23.599
the big trucks in terms of the
delivery trucks around town that we're talking about
548
00:43:23.920 --> 00:43:28.440
or you, because they're not gonna
be Semi's okay, we're not gonna be
549
00:43:28.480 --> 00:43:31.199
having other ones are gonna be so
heavy with everything in them. You know,
550
00:43:31.239 --> 00:43:35.159
I thought was interesting, is uh
one of our you know, we
551
00:43:35.239 --> 00:43:38.559
work with the lender his daughters in
the EU doing some crazy thesis, and
552
00:43:38.599 --> 00:43:43.039
it was like a fifty six page
thesis, and it was explaining why the
553
00:43:43.039 --> 00:43:46.559
EU with doing all their ESG stuff
with EV vehicles and all that how and
554
00:43:46.599 --> 00:43:51.599
she was explaining why the EU is
actually being contradictory to themselves because they're trying
555
00:43:51.599 --> 00:43:54.000
to be ESG friendly. But then
they got this whole chili plant down here,
556
00:43:54.039 --> 00:44:00.760
making all this lithium, ruining the
climate down, ruining the environment and
557
00:44:01.199 --> 00:44:08.159
making these lithium batteries is so energy
intensive and so hard that it's actually counterintuitive
558
00:44:08.320 --> 00:44:13.159
and counterproductive for the country doing it. I think the thesis is great,
559
00:44:14.440 --> 00:44:16.360
but you better not present that to
somebody that you want to get a job
560
00:44:16.400 --> 00:44:22.239
for. Right you're calling us out
on a job that you want. Think
561
00:44:22.280 --> 00:44:24.800
about that, But I mean,
it's it shows the truth of like how
562
00:44:24.840 --> 00:44:30.199
EV vehicles, the production of the
actual inputs in the EV car, that's
563
00:44:30.320 --> 00:44:34.320
what's really tough on the environment,
and that's not talked about too much.
564
00:44:34.400 --> 00:44:44.679
It shows that, it shows the
truth of the hypocritical I'm right, miss
565
00:44:45.280 --> 00:44:49.079
I make sure everything's in line.
Turn off as far we turn the phone
566
00:44:49.079 --> 00:44:52.239
off when you're in Church. Right, also when you're doing the Money Matter
567
00:44:52.280 --> 00:44:57.960
show. But the but the rhetoric
is always wrong, okay, And that's
568
00:44:58.000 --> 00:45:02.480
what we always talk about. We're
not going to have total ev cause stop
569
00:45:02.559 --> 00:45:07.039
mandating that. Every time you make
a mandate on anything. It's there.
570
00:45:07.519 --> 00:45:09.360
There's a lot of problems, and
we keep talking about and going around,
571
00:45:09.719 --> 00:45:15.039
but you know, the main thing
that we see going forward is what are
572
00:45:15.039 --> 00:45:19.360
you going to do if taxes go
up? What are you going to do
573
00:45:19.440 --> 00:45:22.519
for inflation? How are you going
to keep up with all this stuff?
574
00:45:22.360 --> 00:45:28.239
Have you not put a plan together? Then you're behind. If you don't
575
00:45:28.239 --> 00:45:30.480
put a plan together to have where
you are, you need it so you
576
00:45:30.519 --> 00:45:36.880
can start going forward and keep changing
it. Plans change, Todd, You
577
00:45:37.079 --> 00:45:40.719
and Dylan do a great job of
putting these financial plans together. Do people
578
00:45:40.760 --> 00:45:44.920
think that that's it. You do
one and that's it. We know that's
579
00:45:44.960 --> 00:45:49.199
not how it works. Explain to
them how it's an ever changing process,
580
00:45:49.400 --> 00:45:52.800
dynamic process. Yeah. So,
I mean the first initial meeting isn't even
581
00:45:52.920 --> 00:45:55.800
a financial plan, it's just a
report. It's just what you have right
582
00:45:55.840 --> 00:45:59.840
now going on? Right, we
have to actually know what you currently have,
583
00:46:00.079 --> 00:46:02.039
what's where, it's allocated, where
it's headed, what your current goals
584
00:46:02.079 --> 00:46:05.880
are. And then in the second
meeting, that's when we're actually creating the
585
00:46:05.960 --> 00:46:08.400
initial plan. And that's just the
initial one, the one that we start
586
00:46:08.440 --> 00:46:13.960
out with and we initially execute on, and then each year, at least
587
00:46:14.159 --> 00:46:16.880
once a year, we meet and
we reassess those goals and values. For
588
00:46:16.920 --> 00:46:21.199
example, we had another client come
in who has been a client for about
589
00:46:21.239 --> 00:46:24.039
two years to the financial plan.
This year, she received some type of
590
00:46:24.039 --> 00:46:28.960
inheritance that she wanted to plan for
what to do, what's best to do
591
00:46:29.159 --> 00:46:31.360
with that money right now, and
how that's going to help her with retirement.
592
00:46:32.000 --> 00:46:35.960
On top of that, though,
you also have the taxes that Dianer
593
00:46:36.039 --> 00:46:39.079
saying that could you know, with
the debate last night could be very different
594
00:46:39.119 --> 00:46:43.719
depending on which one of those two
win. So having an idea of what
595
00:46:43.800 --> 00:46:47.400
could happen, first of all,
we know what potential act could be taken
596
00:46:47.400 --> 00:46:50.840
away and how that could affect you. So first of all, come in,
597
00:46:51.000 --> 00:46:53.159
let's see what type of income you're
in and see how that affects you.
598
00:46:53.199 --> 00:46:57.119
Do we do roth conversions today?
Do we need to do anything to
599
00:46:57.159 --> 00:47:00.039
grandfather you in before something using trusts
or things like that that state planning could
600
00:47:00.039 --> 00:47:05.800
be a great tool as well to
mitigate tax perpose a great real life example
601
00:47:05.920 --> 00:47:08.000
of one that you did about six
months ago, and the client called up
602
00:47:08.000 --> 00:47:13.000
and said, my wife is interested
in the second home. How is that
603
00:47:13.119 --> 00:47:15.000
going to impact come on in,
Yeah, look, let's look. And
604
00:47:15.039 --> 00:47:17.880
it was only because we had all
the assets in that financial plan where we
605
00:47:17.880 --> 00:47:22.239
were able to see what's the best
efficient place to take it from Absolutely,
606
00:47:22.280 --> 00:47:25.920
I mean ultimately every client wants to
optimize their financial plan. What decisions will
607
00:47:27.000 --> 00:47:30.480
lead to me being as efficient as
I can be In taxes, right,
608
00:47:30.760 --> 00:47:32.360
we know we have to pay them, but we want to pay as little
609
00:47:32.360 --> 00:47:36.920
as possible. He'd done all the
homework to get us the information we need
610
00:47:36.960 --> 00:47:38.599
to do the financial plan. So
as a result, we could just look
611
00:47:38.599 --> 00:47:42.880
back at the plan and go,
well, here's assets right here that are
612
00:47:42.920 --> 00:47:50.840
not being productively used. We could
use those as opposed to disrupting his portfolio.
613
00:47:51.079 --> 00:47:54.000
Yeah, I don't think financial advisors
are money managers anymore. They're much
614
00:47:54.039 --> 00:47:59.559
more than just the person clicking the
buttons for a portfolio. They're also the
615
00:47:59.719 --> 00:48:05.159
entire financial life. Right, the
financial plan, medicare taxes, estate planning
616
00:48:05.639 --> 00:48:07.480
a financial advisors should have knowledge at
least a little bit of knowledge in each
617
00:48:07.480 --> 00:48:12.480
one of these fields and point the
client in the right direction to go right.
618
00:48:12.519 --> 00:48:14.719
I've also lived at two Sound for
fifty years. If you need a
619
00:48:14.719 --> 00:48:17.840
plumber or electrician, I get calls
from time to time. You do who
620
00:48:17.880 --> 00:48:20.760
do you know that does this?
Who do you know that does that?
621
00:48:21.159 --> 00:48:24.440
And on top of that, I
think the biggest value would be for business
622
00:48:24.440 --> 00:48:29.679
owners because business owners is a lot
of tax changes that could happen with the
623
00:48:29.679 --> 00:48:31.400
Trump back. But on top of
that, what we see the biggest thing
624
00:48:31.440 --> 00:48:35.320
with business owners they don't have a
succession plan, so they don't have any
625
00:48:35.360 --> 00:48:38.039
idea whether they're five to ten,
twenty years out from retirement, how are
626
00:48:38.039 --> 00:48:42.800
they going to turn their business,
which is likely often their biggest asset in
627
00:48:42.840 --> 00:48:45.320
their portfolio. How are they going
to turn that into liquid cash so they
628
00:48:45.360 --> 00:48:46.559
can live off of it throughout retirement. Is it going to be some type
629
00:48:46.559 --> 00:48:50.920
of five or ten year installment that
someone's going to pay you out or you
630
00:48:51.000 --> 00:48:53.480
can only sell part of the business. How does that impact your taxes if
631
00:48:53.519 --> 00:48:57.079
you take it all in one year
versus over a course of ten years.
632
00:48:57.079 --> 00:48:59.199
Do we need to defer any of
this type of stuff. I mean there's
633
00:48:59.239 --> 00:49:02.079
a lot of unknowns, not to
mention the fact that the new Secure Act
634
00:49:02.119 --> 00:49:07.119
two point zero has made four oh
one K plans so beneficial for business owners
635
00:49:07.159 --> 00:49:09.079
to get started. I mean initially, like the first five years, it's
636
00:49:09.079 --> 00:49:13.639
pretty much free to open up four
one K plan under this new Act with
637
00:49:13.639 --> 00:49:15.719
all the tax credits. So if
you are a small busines owner who wants
638
00:49:15.760 --> 00:49:19.440
to get into four one K or
any other type of retirement plan, we
639
00:49:19.440 --> 00:49:21.840
can help you with that. But
on top of that, just from a
640
00:49:21.880 --> 00:49:25.159
business owner's whole financial plan, they're
the most complex. Those plans normally run
641
00:49:25.199 --> 00:49:30.119
around five six thousand dollars to actually
do a complex business financial plan. So
642
00:49:30.480 --> 00:49:32.199
we can do that for you.
All you have to do is coming.
643
00:49:32.400 --> 00:49:36.480
There's a lot bit more information we
need from business owners and we can have
644
00:49:36.519 --> 00:49:38.119
that discussion. Just give us a
call five two zero five four four four
645
00:49:38.199 --> 00:49:42.800
nine zero nine. But we are
here to help business owners understand their options
646
00:49:42.880 --> 00:49:45.119
and how to turn that biggest asset
they have into a liquid one. Right,
647
00:49:45.119 --> 00:49:49.239
there's one of those things that's completely
free, and if you haven't done
648
00:49:49.239 --> 00:49:51.159
it, you have to ask yourself, why have I not done this.
649
00:49:51.559 --> 00:49:53.880
Why have I not taken advantage of
this? Even for the younger people out
650
00:49:53.920 --> 00:49:57.519
there. We just had somebody that's
in graduate school, they're about to graduate,
651
00:49:57.559 --> 00:50:00.519
they're twenty five years old. You
know, she's twenty five years old
652
00:50:00.519 --> 00:50:05.000
and she's coming in getting ready to
start thinking about her investing journey. What
653
00:50:05.000 --> 00:50:07.599
am I going to what's my invest
what's my financial situation going to look like?
654
00:50:07.639 --> 00:50:10.199
Forty years on the road. And
then for us younger people, yes,
655
00:50:10.280 --> 00:50:14.119
it is hard to think forty years
down the road, but we're here
656
00:50:14.119 --> 00:50:16.320
to put it out on a piece
of paper for you. This is we
657
00:50:16.320 --> 00:50:20.239
were you know, we were talking
about We talked about the Tesla trucks before
658
00:50:20.280 --> 00:50:23.320
we went into the financial plan one. I wanted dovetail on that with Rivian.
659
00:50:23.400 --> 00:50:29.199
Rivian had a pretty interesting week.
H Rivian down fifty three percent this
660
00:50:29.320 --> 00:50:34.000
year, ever, jumped nine percent
on Tuesday after Guggenheimer raised the shares to
661
00:50:34.039 --> 00:50:38.159
a buye. The analyst said,
our detailed analysis of Rivian's break even glide
662
00:50:38.159 --> 00:50:43.519
path leads us to the conclusion that
Rivian will emerge from the ev winter,
663
00:50:43.760 --> 00:50:45.199
which is what we're in right now, kind of a slow down in the
664
00:50:45.239 --> 00:50:51.039
ev area EV winter as a market
leader Tuesday, and then after that we
665
00:50:51.159 --> 00:50:53.639
got a little first hand inside information
or whatever. But Tuesday, after the
666
00:50:53.679 --> 00:51:00.199
close, Volkswagen said they're going to
invest one billion dollars in Rivian and helped
667
00:51:00.239 --> 00:51:05.199
to partnership with the company. That
sense of shares up another thirty percent on
668
00:51:05.280 --> 00:51:10.079
Wednesday morning. Get this, the
stock still has to double from there to
669
00:51:10.079 --> 00:51:15.199
get back to where it was.
Just last summer went from twenty eight to
670
00:51:15.239 --> 00:51:19.199
eight. Well, now it's worked
its way back to fourteen, so you
671
00:51:19.760 --> 00:51:25.039
gotta double from here. One of
the things about about the Volkswagen one billion
672
00:51:25.079 --> 00:51:30.159
dollar investment is it does take away
the concerns about access to money that old
673
00:51:30.199 --> 00:51:34.920
Rivian had had, and it actually
I think, in my opinion makes them
674
00:51:34.920 --> 00:51:40.320
the first really legitimate competitor to Tesla. And the interesting part about that is
675
00:51:40.360 --> 00:51:45.760
on that news, Tesla shares a
rally to a two month high above two
676
00:51:45.800 --> 00:51:50.320
hundred dollars for the first time in
two months. Most of the EV stocks
677
00:51:50.320 --> 00:51:52.800
had pretty good I think I think
Lucid arose four percents off of that.
678
00:51:53.039 --> 00:51:55.519
In sympathy with that, yeah,
I get, you know, just to
679
00:51:55.559 --> 00:51:59.920
remind you that this is not you
know, a flash in the pan deal,
680
00:52:00.199 --> 00:52:05.079
this whole EV thing, and I
agree with them. We can't mandate
681
00:52:05.320 --> 00:52:10.599
EV production. We can can't mandate
the twelve states that have said that you
682
00:52:10.639 --> 00:52:15.239
they're not going to sell anything except
evs by what twenty thirty five. They're
683
00:52:15.280 --> 00:52:19.719
just they're just confused. Do you
think these batteries for shorter hauls? It
684
00:52:19.719 --> 00:52:23.079
could be useful for companies like UPS
fed X. Is that kind of the
685
00:52:23.119 --> 00:52:27.039
shorter haul that you're thinking You said
PEPSI truck earlier. Yeah, good idea.
686
00:52:27.159 --> 00:52:30.559
UPS would be a good a good
choice. FedEx, they're around town
687
00:52:30.599 --> 00:52:32.880
stuff. Speaking of FedEx, they
were up fourteen percent. How about that?
688
00:52:32.960 --> 00:52:38.840
And then the STOAKA was only up
two percent for the year because of
689
00:52:38.920 --> 00:52:45.519
concern about slowing global economy. Fed
X often seen as a window into the
690
00:52:45.559 --> 00:52:50.320
global economy, right, and FedEx
did great. A lot of that was
691
00:52:50.400 --> 00:52:54.880
cost cutting got handed to you.
But they did report revenue above expectations,
692
00:52:55.480 --> 00:53:00.239
so it wasn't It wasn't just one
hundred percent cost cutting. I had a
693
00:53:00.320 --> 00:53:06.760
couple of interesting court cases over the
last week that I think will impact a
694
00:53:06.760 --> 00:53:10.199
lot of people. Student debt.
We talk a lot about student debt and
695
00:53:10.239 --> 00:53:14.960
how student debt is. We have
a lot of disagreement about student debt,
696
00:53:15.039 --> 00:53:17.920
student debt, forgiveness, all that
stuff. Two federal judges, one in
697
00:53:19.000 --> 00:53:24.920
Kansas, one in Missouri, have
temporarily halted significant parts of Biden's new student
698
00:53:25.000 --> 00:53:29.239
loan repayment plan, you know,
is his Plan C, Plan D,
699
00:53:29.360 --> 00:53:34.039
planning, whatever, putting debt relief
for millions of these Americans in jeopardy.
700
00:53:34.079 --> 00:53:38.880
The ruling stops the US Department of
Education from implementing major provisions of the plan
701
00:53:40.239 --> 00:53:45.079
until the cases are decided. And
you know how long that takes. It's
702
00:53:45.119 --> 00:53:52.280
like slow motion. The Biden administration
is prevented from forgiving any more debt under
703
00:53:52.360 --> 00:53:58.239
the new income driven repayment plan,
from further reducing Boroughs family. So that's
704
00:53:58.880 --> 00:54:00.599
that's a good thing. I mean. And that's as someone who wrote checks
705
00:54:00.599 --> 00:54:04.840
for my daughter to go to college, and I don't think I'm going to
706
00:54:04.920 --> 00:54:09.559
get those back under any Biden plan. I don't understand why other people you
707
00:54:09.599 --> 00:54:15.360
don't have to pay just because they
borrowed the money. It seems to me.
708
00:54:15.920 --> 00:54:21.760
Seems to me another significant court ruling. And I can't even tell you
709
00:54:21.840 --> 00:54:27.199
how significant this is. I think
to all of us living in civilized society
710
00:54:27.679 --> 00:54:31.360
is the grant Pass Oregon case.
In Grant Pass, Oregon, small town
711
00:54:31.440 --> 00:54:37.000
in Oregon had a problem with the
Hobos setting up camp in public places and
712
00:54:37.960 --> 00:54:43.280
it was a nuisance. So they
passed an ordinance that you cannot set up
713
00:54:43.320 --> 00:54:45.920
a camp. You and I cannot
camp in a public place. Well,
714
00:54:46.920 --> 00:54:52.119
the A C. L U and
others sued and they got the Ninth District
715
00:54:52.239 --> 00:54:57.440
to rule that that was unconstitutional,
that these people did have the right to
716
00:54:57.760 --> 00:55:00.280
pretty much live wherever they wanted to
live. It's horrible, which is just
717
00:55:00.679 --> 00:55:05.360
hard to even imagine that that's the
world. I need to bring that lawn
718
00:55:05.360 --> 00:55:07.280
to Tucson. But never mind now
since it just got shut down. It
719
00:55:07.320 --> 00:55:14.079
went to the Supreme Court. Supreme
Court on Friday ruled that the city could
720
00:55:14.119 --> 00:55:21.360
in fact restrict where homeless people camp, which I think is just common sense,
721
00:55:21.760 --> 00:55:24.280
isn't it. I would think it's
common sense. Next thing, you
722
00:55:24.320 --> 00:55:29.800
know, you have them camped outside
elementary schools and stuff. Right, it's
723
00:55:29.840 --> 00:55:32.119
hard to have that. I mean, you look at the Pima County Courthouse.
724
00:55:32.119 --> 00:55:38.280
There's a lot of time and money
spending refurbishing net and imagine, you
725
00:55:38.320 --> 00:55:43.480
know, one hundred hopeless end of
camp down there or I think about here
726
00:55:43.519 --> 00:55:45.239
in town. I forget which intersection
it is, but it was a Mexican
727
00:55:45.280 --> 00:55:50.480
restaurant that just ended up moving up
closer to First First an Oracle. Why
728
00:55:50.679 --> 00:55:53.639
because outside you drive down there,
I think it was called like Last Both
729
00:55:53.679 --> 00:55:57.639
Dynas or something like that. But
you drive down there, it's right next
730
00:55:57.679 --> 00:56:00.840
to a circle K and there's fifty
people just sitting outside. I'm not going
731
00:56:00.880 --> 00:56:05.480
in that restaurant, are you?
No? The QT at Oracle and four
732
00:56:05.559 --> 00:56:10.440
Lowell has two security guards because they're
homeless people. The are all around there.
733
00:56:10.760 --> 00:56:14.559
I hadn't said to use the word
homeless because most of them are there.
734
00:56:14.840 --> 00:56:16.440
I shouldn't say most of it.
I'm no expert, but a lot
735
00:56:16.480 --> 00:56:21.320
of them are there by choice.
Walgreens should take a tip from crugle K
736
00:56:21.639 --> 00:56:24.239
and QT. Yeah, hire security
guard, Hire some security guards, Walgreens.
737
00:56:24.320 --> 00:56:28.440
Maybe maybe you'll maybe you'll be in
business. Maybe you won't go with
738
00:56:28.480 --> 00:56:31.360
the right aid route. You got
any more laws? No, those are
739
00:56:31.400 --> 00:56:34.599
the two biggies that I saw this
week. But yeah, well I got
740
00:56:34.599 --> 00:56:39.920
another biggie. It was the Supreme
Court ruling on Chevron versus NRDC. And
741
00:56:40.199 --> 00:56:45.199
this one was a long one started
in nineteen eighty four. Whoa Right just
742
00:56:45.320 --> 00:56:50.559
now struck down by the Supreme Court. And it was a law that basically
743
00:56:50.599 --> 00:56:55.639
said that courts were mandated to defer
to federal agencies for reasonable for their reasonable
744
00:56:55.639 --> 00:57:00.639
interpretations of ambiguous statues. So anytime
there is like an ambiguous thing that they
745
00:57:00.639 --> 00:57:05.760
didn't like, a court didn't have
a direct rolling on the federal agency had
746
00:57:05.800 --> 00:57:07.239
like basically the power. So this
is actually a good thing. It's taking
747
00:57:07.239 --> 00:57:13.239
away the power and including the sec
of their abilities to interpret and enforce laws.
748
00:57:13.239 --> 00:57:15.079
They're not allowed to just interpret them
anymore. It's giving They said that
749
00:57:15.280 --> 00:57:20.639
the Supreme Court said it gave them
too much power to unelected regulators and they
750
00:57:20.679 --> 00:57:24.199
didn't like that, so that's being
taken away. Rulings like this remind us
751
00:57:24.239 --> 00:57:30.679
of how critical it is to be
able to appoint justice to the Supreme Court.
752
00:57:30.320 --> 00:57:35.559
I mean, if you were to
have a left leaning Supreme Court,
753
00:57:35.599 --> 00:57:38.039
and we have we clearly have a
right leaning Supreme Court. If we were
754
00:57:38.039 --> 00:57:42.599
to have a left leaning Supreme Court, the Grant's pass organ case may have
755
00:57:42.639 --> 00:57:49.639
been thrown out. And so again, people walking the streets and camping on
756
00:57:49.679 --> 00:57:52.320
the streets. Can just could set
up shop anywhere they wanted and you couldn't
757
00:57:52.360 --> 00:57:54.760
do a darn thing about it.
I also think it's a good point to
758
00:57:54.800 --> 00:58:00.559
bring up that the executive branch does
not control everything in this country a judicial
759
00:58:00.599 --> 00:58:02.159
branch. We have a legislative branch, and there's a reason for that.
760
00:58:02.199 --> 00:58:07.920
It's the balance of powers, checking
of powers, and not everything comes from
761
00:58:07.960 --> 00:58:10.239
the president. I mean, sure
he can influence it, but there's other
762
00:58:10.320 --> 00:58:15.280
branches. Like, yes, presidents
appointed all these justices, but the justices
763
00:58:15.280 --> 00:58:20.000
still came to their own decision afterwards. Right, And the judicial branch makes
764
00:58:20.039 --> 00:58:23.360
their decisions. Legislative branch makes the
laws, executive branch signs off on it.
765
00:58:23.480 --> 00:58:27.599
Right. And if you, as
the at the legislative branch, do
766
00:58:27.679 --> 00:58:30.400
not like the Supreme Court ruling,
pass a lot, that changes it.
767
00:58:30.880 --> 00:58:35.480
I Mean, all of the Supreme
Court is doing is interpreting the law.
768
00:58:35.519 --> 00:58:38.679
That's all they're doing. Is there
a right wing view or any left wing
769
00:58:38.760 --> 00:58:45.840
view? Absolutely probably in anything right, But in the perfect world, the
770
00:58:45.880 --> 00:58:47.760
Supreme Court is impartial. It's kind
of why we have one of the best
771
00:58:47.800 --> 00:58:52.280
democracies this systems. It's because we
have the balance of powers and hopefully that
772
00:58:52.400 --> 00:58:54.599
keeps it that way. We should
not be given too much powers to the
773
00:58:54.639 --> 00:59:00.320
executive branch. Could couldn't agree with
you more. The major stocks, the
774
00:59:00.760 --> 00:59:06.480
thirty doustocks are thought to be thirty
of the best companies in the world.
775
00:59:06.519 --> 00:59:13.119
Correct Nike? What is going on
with Nike out out retail? Really?
776
00:59:13.199 --> 00:59:15.599
But yeah, Nike leading the way
down. You know, they were down
777
00:59:15.639 --> 00:59:20.320
twelve percent this year already. They
plunged another eighteen percent at the open on
778
00:59:20.440 --> 00:59:24.199
Friday to the lowest level. Get
this, the lowest level since the pandemic.
779
00:59:25.239 --> 00:59:30.480
So it's a four year low.
Is we're Nike that four year low?
780
00:59:30.599 --> 00:59:34.360
Sales fell about six percent a year
over year, starting to lose some
781
00:59:34.400 --> 00:59:38.480
of the market share. I guess
why they're blaming China. Why that's the
782
00:59:38.519 --> 00:59:42.599
slow down in China. I always
think about these stocks that are hitting their
783
00:59:42.599 --> 00:59:47.679
pandemic loads, and I it's always
confusing to me because in the pandemic,
784
00:59:49.039 --> 00:59:52.159
right, there was nothing going on. Nothing. They have at least something
785
00:59:52.199 --> 00:59:53.639
going on here. Yeah, right, But you know what was going on
786
00:59:53.679 --> 00:59:58.880
in the pandemic quite a bit,
especially for Nike. The resale of Nike
787
00:59:59.000 --> 01:00:00.760
shoes. They don't get a cut
of that though. If I'm selling,
788
01:00:00.840 --> 01:00:05.719
absolutely not. But if you have
somebody that's reselling has a bot in there,
789
01:00:05.960 --> 01:00:08.000
right, because you could you could
buy a bot now that you could
790
01:00:08.079 --> 01:00:12.880
order twenty two hundreds of shoes and
it'll get them for you. Right.
791
01:00:13.119 --> 01:00:15.400
Let's say you don't have as many
of those people out there that trying to
792
01:00:15.440 --> 01:00:19.360
resell shoes. Okay, well there's
not. Yeah, none of your stores
793
01:00:19.400 --> 01:00:22.679
are open. You lose like eighty
percent of your revenue for the business.
794
01:00:22.920 --> 01:00:25.880
That's why they are home. That's
why the stock sold off to its I
795
01:00:25.880 --> 01:00:29.840
mean, it's probably got cut in
fifty percent like most stocks did. Right.
796
01:00:29.920 --> 01:00:31.480
So you look at that and you
say, well, that's probably unreasonable.
797
01:00:31.559 --> 01:00:37.440
That's probably a reasonable level for Nike
stock to be. But you don't
798
01:00:37.480 --> 01:00:40.880
know because with American airlines, they're
also at their pandemic low TSA throughput.
799
01:00:40.920 --> 01:00:45.679
Is that an all time high?
Well, that doesn't make sense. TSA
800
01:00:45.840 --> 01:00:50.800
throughput, the amount of people going
through TSA, the security at the airport,
801
01:00:51.119 --> 01:00:53.320
it's at an all time high,
which means in theory, more people
802
01:00:53.360 --> 01:00:59.480
are taking planes than ever before.
I've actually I go ahead, but I
803
01:00:59.519 --> 01:01:01.519
was just saying, like with American
airlines still trading at it's now trading at
804
01:01:01.519 --> 01:01:06.719
its pandemic low when no one was
taking flights. Now we have an all
805
01:01:06.719 --> 01:01:09.199
time high in flights, but they're
at all time low. So it's just
806
01:01:09.239 --> 01:01:14.239
it's a weird thing. Well what
I'm what I'm noticing and I haven't just
807
01:01:14.320 --> 01:01:16.679
coincidentally I have them flown in probably
five years, I've had no reason to.
808
01:01:16.800 --> 01:01:20.840
I drive to California see grand kids. Right, that's if I have
809
01:01:20.960 --> 01:01:24.280
time off, I go to California. We're going to UH make a tour
810
01:01:24.360 --> 01:01:32.360
of our elderly relatives one last time. And that's taken us to that's taken
811
01:01:32.440 --> 01:01:37.199
us to Louisville, UH in July, and has taken us to UH Milwaukee
812
01:01:37.239 --> 01:01:42.880
in September. And what I've noticed
is the price of tickets is really low
813
01:01:43.400 --> 01:01:45.880
low. I mean low, ridiculously
low. I Metica. I won't say
814
01:01:45.920 --> 01:01:50.320
ridiculously low. But first is what
it was a year ageing, Like you
815
01:01:50.320 --> 01:01:52.920
said, he said, going to
Kentucky and he's going to Yeah, ain't
816
01:01:52.920 --> 01:01:57.519
not paying attention what airline? But
American? Yeah? Yeah, I mean
817
01:01:57.559 --> 01:02:00.679
I don't. I mean I was
surprised American you do have to pay for
818
01:02:00.760 --> 01:02:04.679
checking the bag, so maybe their
prices are a little lower in the Southwest
819
01:02:04.760 --> 01:02:07.760
or something. I was surprised at
how that they were where they're at.
820
01:02:07.840 --> 01:02:10.480
But isn't that amazing though, I
mean, if there are are where they
821
01:02:10.480 --> 01:02:14.440
are at, and they're at an
all time high and throughput, you know,
822
01:02:14.519 --> 01:02:16.000
the TSA has never seen as many
people coming through their doors. So
823
01:02:16.079 --> 01:02:19.000
remember that one. It's got to
be a lot of traffic. We're not
824
01:02:19.000 --> 01:02:21.519
going to charge people anything, but
we'll make it up in volume. Right.
825
01:02:21.559 --> 01:02:24.320
Remember they brought out like a new
anti trust law saying that Okay,
826
01:02:24.400 --> 01:02:29.599
your flight gets laid by over X
amount of hours, they have to pay
827
01:02:29.679 --> 01:02:31.039
up. Now do you think that
could be feeding into the margins? Maybe
828
01:02:31.039 --> 01:02:35.400
a little bit, maybe a little
bit, but not that quickly. It
829
01:02:35.400 --> 01:02:38.440
would take away longer for that.
I certainly an airline ticket prices, but
830
01:02:38.519 --> 01:02:43.880
I know that a year ago I
was gonna go somewhere and I looked at
831
01:02:43.880 --> 01:02:46.320
it, Oh my goodness, what's
happened to these ticket prices? And when
832
01:02:46.320 --> 01:02:50.599
I went on this time, I
was like, wow, that's really reasonable.
833
01:02:50.760 --> 01:02:52.000
Yeah, And I mean, the
one thing you can say in the
834
01:02:52.039 --> 01:02:57.400
pandemic, you had oil prices obviously
way lower, which you know, helped
835
01:02:57.440 --> 01:03:00.599
the airliners on the margin level.
But it's all kinds of hard to compute.
836
01:03:00.599 --> 01:03:06.079
It all kinds of deals of a
guy that details my cars that he
837
01:03:06.199 --> 01:03:08.880
and his wife flew to Ireland for
like two hundred and fifty bucks. Wow,
838
01:03:09.400 --> 01:03:13.800
Wow, I want that. I
think the best airline we've talked about
839
01:03:13.880 --> 01:03:17.239
in the show is Delta, and
they're kind of more than anyone right now.
840
01:03:17.360 --> 01:03:22.639
Since the pandemic, they seem to
have come out out of this whole
841
01:03:22.639 --> 01:03:25.320
thing better than most of the others. And they've actually I mean, there
842
01:03:25.360 --> 01:03:29.960
was a time when Delta was like
Delta, but but I think because they
843
01:03:30.079 --> 01:03:34.760
merged with Frontier, I believe no
Western they merged, merged with Western Airlines,
844
01:03:34.800 --> 01:03:39.760
and I think they really have become
kind of the class of the group
845
01:03:40.239 --> 01:03:44.239
at this point, it seems to
me. And another star that kind of
846
01:03:44.239 --> 01:03:47.280
reminds me of this is game Stop
of saying like just you have to have
847
01:03:47.320 --> 01:03:52.480
a business model, and you know
we were talking about this. Your friend
848
01:03:52.480 --> 01:03:55.840
gets a PS five and there's no
place to put a disc for your game
849
01:03:57.119 --> 01:04:00.480
his specific one, just so you
guys. And it's a lot of the
850
01:04:00.480 --> 01:04:05.119
new generations type. It's the newest
generation of a video PlayStation, a console,
851
01:04:05.320 --> 01:04:11.079
PlayStation live. Yes, so it's
a video a gaming counsole, a
852
01:04:11.079 --> 01:04:14.079
console put the disc in, but
it doesn't have a space to put the
853
01:04:14.119 --> 01:04:16.559
disc in. So what do you
do? You turn it on and then
854
01:04:16.599 --> 01:04:20.920
you buy the game and it downloads
to the console. Oh for gonna say,
855
01:04:21.000 --> 01:04:25.760
now, here's some other insight that
I actually found too right for these
856
01:04:26.320 --> 01:04:29.360
back in when I was in high
school or middle school. If I wanted
857
01:04:29.360 --> 01:04:31.119
to go buy a brand's new,
I want to go out and buy the
858
01:04:31.119 --> 01:04:35.320
brand new matter how much does it
costing todd about fifty sixty bucks right right
859
01:04:35.360 --> 01:04:38.559
now? If you want a brand
new video game, you want the brand
860
01:04:38.559 --> 01:04:40.880
new Spider Man that just came out, it's going to cost you about seventy
861
01:04:40.880 --> 01:04:44.360
five to eighty dollars. Right.
So, now you have Microsoft, Now
862
01:04:44.360 --> 01:04:47.840
you have PlayStation and forget who the
parent company of PlayStation is Samsung. Oh
863
01:04:47.880 --> 01:04:54.639
so Sony. They have implemented these
essentially a Netflix subscription but for games,
864
01:04:54.719 --> 01:04:58.679
as in I pay twelve dollars a
month and I get thirty new games every
865
01:04:58.679 --> 01:05:02.880
single month. That is I mean, that's gonna take a lot away from
866
01:05:03.679 --> 01:05:09.480
game Stop. And also when you
can buy like a video like a control
867
01:05:09.599 --> 01:05:12.880
or anything on Amazon, Like why
would I need to go into game seng.
868
01:05:13.079 --> 01:05:15.599
You know, it just seems we
were talking about it was like,
869
01:05:15.679 --> 01:05:17.639
with all this money, what do
they do to reinvigorate that business. Well,
870
01:05:17.639 --> 01:05:21.840
you guys have been saying for a
year that Walgreen's business model is broken,
871
01:05:21.880 --> 01:05:26.239
and here they are, and there's
one stock that would love to be
872
01:05:26.280 --> 01:05:30.079
at the pandemic lowal. There's probably
a double from here, right, that's
873
01:05:30.159 --> 01:05:32.880
true. We'll be back after this
break. We thank you for listening.
874
01:05:33.280 --> 01:05:38.800
If you have not done the financial
plan with the guys, please take time
875
01:05:38.880 --> 01:05:42.840
to call and do that. Summers
a little slower around here generally can get
876
01:05:42.880 --> 01:05:46.280
you in pretty pretty open appointment schedule, so they're seeing one or two people
877
01:05:46.320 --> 01:05:50.559
every single day. But we generally
be pretty flexible, So give us a
878
01:05:50.559 --> 01:05:56.000
call, come on and take advantage
of that before it's gone. We'll be
879
01:05:56.079 --> 01:05:59.840
back right after this break. Good
morning, Welcome back to the Money Matters
880
01:05:59.800 --> 01:06:01.679
Show. This is Dave Sherwood.
I'm here with Sebastian, I'm here with
881
01:06:01.760 --> 01:06:05.599
Thodd. We're bringing you all this
up to date on the market. The
882
01:06:05.639 --> 01:06:11.159
market had a very very quiet week. The Dow was down thirty one points.
883
01:06:11.400 --> 01:06:14.760
The S and P five hundred was
down four The interesting part about that
884
01:06:14.920 --> 01:06:18.039
is that'll go down in history is
the second down day. Down week in
885
01:06:18.119 --> 01:06:23.559
the last eleven weeks. With a
two point loss could have just as easily
886
01:06:23.559 --> 01:06:27.480
been the tenth up week out of
eleven. But instead, No, I
887
01:06:27.519 --> 01:06:30.440
mean this SMP would have been what
nine out of lost ten? Yeah,
888
01:06:30.480 --> 01:06:33.199
we didn't have down four points?
Yeah, four points four points, So
889
01:06:33.840 --> 01:06:38.280
that was nine out of the last
eleven. They could have ten out of
890
01:06:38.280 --> 01:06:41.320
the last eleven. Annoying, isn't
it kind of annoying? Anyway? Very
891
01:06:41.360 --> 01:06:47.079
little movement to gold oil. Bitcoin
probably was the biggest mover of the week.
892
01:06:47.119 --> 01:06:49.960
I think, down about five percent
on the week. Yeah, and
893
01:06:50.159 --> 01:06:54.039
you're getting pretty excited, are you
about? I'm getting real every time it
894
01:06:54.119 --> 01:06:58.079
drops, I just buy more.
Yeah, I'm real excited for just loading
895
01:06:58.159 --> 01:07:00.800
up. Yeah, eventually you just
have so much you want to do with
896
01:07:00.840 --> 01:07:04.880
yourself. Oh I I I hope
that's the case. Actually, I think
897
01:07:04.880 --> 01:07:09.280
it's a good deal. I think. So. Let me give you a
898
01:07:09.320 --> 01:07:16.039
fun fact Costco. According to the
CEO, what's Costco's most valuable product?
899
01:07:16.639 --> 01:07:19.760
They're hot dogs? Hot Dogs huh, hot dogs? Did that number one?
900
01:07:19.800 --> 01:07:25.760
How about the gold bars? It
could be what's their most valuable product?
901
01:07:25.760 --> 01:07:29.360
Now, by valuable product, I'm
talking about what do they make the
902
01:07:29.400 --> 01:07:32.440
most money on? Toilet piper?
What's the most valuable product? Would you
903
01:07:32.440 --> 01:07:40.039
say toilet pipper their meat? Nope? About bottles? How about this membership
904
01:07:40.079 --> 01:07:44.599
card? Oh that's not fair?
All right? Well, yeah, because
905
01:07:44.639 --> 01:07:46.800
the cost is like a sent to
make a car. I mean that's that's
906
01:07:46.840 --> 01:07:51.079
a duh. Todd. You brought
up an interesting one during Yeah, you
907
01:07:51.119 --> 01:07:55.719
set up on that one. True. Yeah, that's not barely a product.
908
01:07:56.920 --> 01:08:00.480
According to the CEO, it's their
most valuable product. This is not
909
01:08:00.639 --> 01:08:03.599
me saying that. This is the
CEO of Costco who used to be a
910
01:08:03.599 --> 01:08:08.079
forklift driver. Don't mess with him. Okay, well, obviously he doesn't
911
01:08:08.119 --> 01:08:12.880
know what a product is. Then
actually shouldn't be running this company. What
912
01:08:13.000 --> 01:08:15.319
the heck's going on here? Todd? You came up with an interesting one.
913
01:08:15.359 --> 01:08:19.960
I think it was you this past
week. What company sells the most
914
01:08:19.960 --> 01:08:25.880
stuff? Oh, the most revenue, the most revenue? Essentially, what
915
01:08:25.960 --> 01:08:30.439
company sells the most stuff we know
of any company, of any company in
916
01:08:30.479 --> 01:08:32.920
the world, oil company, No, that's the most profitable company in the
917
01:08:32.920 --> 01:08:38.840
world. We talked about that last
Which company makes the most revenue in the
918
01:08:38.840 --> 01:08:43.840
world. It makes the most stuff, right Amazon? That I did,
919
01:08:43.960 --> 01:08:47.920
good guess give you one more,
and I happened to know the answer,
920
01:08:48.000 --> 01:08:50.880
so I'm not going to guess.
Now tell me Walmart. Oh, that
921
01:08:50.960 --> 01:08:56.439
was a good and actually since twenty
fourteen, they've led the way ten straight
922
01:08:56.520 --> 01:09:00.000
years. It's funny because I asked
my wife that question when I got home
923
01:09:00.520 --> 01:09:02.960
last week. I think, Okay, Honey, what's the what company sells
924
01:09:03.000 --> 01:09:08.920
the most stuff? She goes Walmart? Well, you know, fue Yeah,
925
01:09:09.000 --> 01:09:11.760
you know fine. I actually went
to Walmart, and I don't know
926
01:09:11.840 --> 01:09:15.319
if I've talked about on the show. I'm really tired of these body wash
927
01:09:15.479 --> 01:09:17.800
prices, this deodorant prices, They're
just through the roof. So I went
928
01:09:17.840 --> 01:09:21.840
to Walmart instead to buy the stuff
this time around. And I just think
929
01:09:21.880 --> 01:09:26.159
it was at about a thirty percent
discount buying it there than Albertson's or a
930
01:09:26.319 --> 01:09:29.600
Fries. So, speaking of which, I got a crisis in my house.
931
01:09:29.880 --> 01:09:35.000
What's that cover? Girl no longer
makes khaki colored eyeliner? Yeah,
932
01:09:35.000 --> 01:09:39.000
you said that, you want man
I'll tell you we've been scrammling this week.
933
01:09:42.439 --> 01:09:45.520
You know they how dare they do
away with? Yeah? You know
934
01:09:45.640 --> 01:09:48.680
that is funny though, when you
get something that you really like, whatever
935
01:09:48.760 --> 01:09:55.119
it is, and they no longer
make it for whatever reason so irritating.
936
01:09:55.159 --> 01:09:57.680
Well, you know, each week
I say something about a I got a
937
01:09:57.720 --> 01:10:00.439
new crazy AI thing that things.
I think you're by the way, the
938
01:10:00.439 --> 01:10:05.520
piece of crap. I disagree with
you because it doesn't give you choices.
939
01:10:06.600 --> 01:10:11.520
You ask a question and answers the
question I want to I want to I
940
01:10:11.560 --> 01:10:15.840
want like what is the best eyeliner
in the world. It will give you
941
01:10:15.880 --> 01:10:19.079
that I wanted. I want to
lift, I want I want multiple choices.
942
01:10:19.760 --> 01:10:23.399
Then you have to I literally,
I literally asked you. I said,
943
01:10:23.439 --> 01:10:26.359
find me the cheapest oil change of
talent, gave me five options on
944
01:10:26.439 --> 01:10:29.560
demand. I asked five or six
questions last week and it was like right
945
01:10:29.600 --> 01:10:32.119
to the point, just answered the
question. I want choices. You just
946
01:10:32.199 --> 01:10:36.000
have to ask for choice. Yeah, that sounds like a user. But
947
01:10:36.039 --> 01:10:39.720
also let me ask you. Are
you using three point five or using four
948
01:10:39.720 --> 01:10:45.439
point zero? Do you have any
idea I'm using there the GPT dot com,
949
01:10:45.479 --> 01:10:46.800
you're using the free one right down. Yeah, you didn't put your
950
01:10:46.840 --> 01:10:51.039
card in No, exactly. So
that and this is along the lines we're
951
01:10:51.079 --> 01:10:56.600
talking about three point five. It's
kind of like imagine an eighth grader.
952
01:10:57.239 --> 01:11:00.439
Okay, they're intellect what they're able
to do? You tell night what to
953
01:11:00.439 --> 01:11:02.439
do. There's only a certain number
of things they can do. Four point
954
01:11:02.520 --> 01:11:06.920
zero is like a high schooler going
into college. Okay, so how do
955
01:11:06.960 --> 01:11:11.159
you get four point Oh you have
to make It's a subscription, twenty bucks
956
01:11:11.159 --> 01:11:15.039
a month. I pay for that. I found it. Uh and and
957
01:11:15.079 --> 01:11:17.600
again it may be because I haven't
used it before. Yes, and there's
958
01:11:17.600 --> 01:11:21.279
a learning. Eff you know there's
a learning there is. I thought this
959
01:11:21.399 --> 01:11:25.920
is crap. No, it's it's
incredible. And let me let me show
960
01:11:25.960 --> 01:11:31.079
you why. Boston University developed an
AI model that predicts all Steimer's on set
961
01:11:31.439 --> 01:11:35.880
using speech pattern analysis, and it
actually came out with a seventy eight point
962
01:11:35.880 --> 01:11:41.439
five percent accuracy. So what they
do is you have an old person speaking
963
01:11:41.520 --> 01:11:45.760
to anything, and the AI model
will be able to know if there's onset
964
01:11:45.840 --> 01:11:53.279
Alzheimer's just based on someone's thirty second
speech. That's mind blogging. And so
965
01:11:53.399 --> 01:11:56.479
what they did and they did a
study. So they found a whole bunch
966
01:11:56.479 --> 01:12:00.800
of dementia and onset people that had
genetic you know, predisposed to Alzheimer's,
967
01:12:00.880 --> 01:12:03.399
and they put a they had them
talk, and they followed them over like
968
01:12:03.479 --> 01:12:08.640
five seven years, and they kept
retraining the model, and each time they
969
01:12:09.079 --> 01:12:13.319
re put a speech, you know, some developed the actual dimension also some
970
01:12:13.359 --> 01:12:15.159
didn't, so they were able to
see the differences and how the speech changes
971
01:12:15.199 --> 01:12:18.560
over time, and so they use
that information to build the model. And
972
01:12:18.560 --> 01:12:21.640
that model now is out of seventy
eight point five percent accuracy, and obviously
973
01:12:21.640 --> 01:12:25.880
that will just go up the more
data it gets. So that's something you
974
01:12:25.920 --> 01:12:29.840
can do with your phone. Well, I mean it's Boston University developed it,
975
01:12:29.840 --> 01:12:32.520
so I'm not sure how they are
practically going to roll it out or
976
01:12:32.520 --> 01:12:36.039
anything, but it's you know,
it's just like one of another things where
977
01:12:36.039 --> 01:12:39.520
I was like, oh, yeah, that's incredible. I mean, you're
978
01:12:39.520 --> 01:12:42.399
able to talk into a thing,
and it's gonna be able to know based
979
01:12:42.439 --> 01:12:45.600
on your speech. You know what. Eventually it's gonna be able to know
980
01:12:45.600 --> 01:12:46.920
where you're from just how you talk. You know, you're talk into it,
981
01:12:46.920 --> 01:12:48.880
it's gonna you're from this place,
it's like, how did you know
982
01:12:48.920 --> 01:12:54.880
that we've talked before on the show
about healthcare probably being the place where AI
983
01:12:55.079 --> 01:13:00.439
is going to make the most positive
difference possibly for sure. And this is
984
01:13:00.520 --> 01:13:03.680
that's my that's my I mean,
technology makes it's hard to not say technology
985
01:13:04.239 --> 01:13:09.520
you know from like you know,
Meta and all powerpoints. And there's a
986
01:13:09.560 --> 01:13:12.840
lot of things that AI can do
great for those type of things, word
987
01:13:12.960 --> 01:13:17.279
documents, newsletter articles, you know, ideas, image generators, logo creators.
988
01:13:17.319 --> 01:13:20.319
I mean, those are all things
that AI can do very well even
989
01:13:20.319 --> 01:13:23.359
now, let alone what it's going
to be in five years. Well,
990
01:13:23.479 --> 01:13:28.000
folks, my age fighting technology,
whether it be GPT or electric cars or
991
01:13:28.000 --> 01:13:31.239
whatever, don't it's really really cool. Yeah, a lot of what a
992
01:13:31.279 --> 01:13:38.920
wonderful time to be alive in the
technology world. Yeah, so many things
993
01:13:38.960 --> 01:13:42.479
that we can do, somebody,
that's my chat GBT thing of the week.
994
01:13:43.079 --> 01:13:46.399
So many things we just need to
just dreamed about. Right. IBM
995
01:13:46.960 --> 01:13:51.680
another Dow component, uh up just
seven percent this year. We got a
996
01:13:51.720 --> 01:13:57.880
three percent boost on Monday after Goldman
Sachs initiated coverage with a by reading we've
997
01:13:57.880 --> 01:14:00.560
been kind of talking about IBM.
We owned a little bit IBM in the
998
01:14:00.600 --> 01:14:06.279
office here. Firmstead IBM is on
track to sustain long term revenue and free
999
01:14:06.479 --> 01:14:14.279
cash flow growth driven by AI production
and services. They look good this week.
1000
01:14:14.560 --> 01:14:17.279
I like how the charts Foreman charge
actually well. Another Dow component to
1001
01:14:17.399 --> 01:14:24.039
Disney fractionally higher. On Tuesday,
after Goldmans Nacs again rated those shares of
1002
01:14:24.119 --> 01:14:28.840
buy, they pointed to the sports
rights portfolio and theme parks as a politive
1003
01:14:28.880 --> 01:14:31.000
for the company. I know Jim
Kramer has been wanting to be able to
1004
01:14:31.000 --> 01:14:34.159
buy it under one hundred, and
on Friday, I believe it was under
1005
01:14:34.159 --> 01:14:38.920
one hundred. Did you hear about
a snap election that's going on in France?
1006
01:14:39.560 --> 01:14:43.560
No, I don't even know this
was allowed. But the French president,
1007
01:14:43.680 --> 01:14:46.960
Emmanuel Macron, he called for a
snap parliamentary election, which means they
1008
01:14:47.000 --> 01:14:50.399
will happen earlier than planned. It's
actually gonna happen next week. The decision
1009
01:14:50.439 --> 01:14:57.880
came after his centrist Policy party Sorry
lost significantly to the far right National Rally
1010
01:14:57.960 --> 01:15:01.560
in the recent European Union parliamentary elections, so he hopes that these new elections
1011
01:15:01.600 --> 01:15:05.800
will help him regain control in the
French Parliament, where his party lost its
1012
01:15:05.800 --> 01:15:12.479
majority in twenty twenty two. So
parliamentary former government is unusual. Election frauds
1013
01:15:12.479 --> 01:15:14.920
a worldwide thing. I guess,
I mean, I mean these I mean,
1014
01:15:14.920 --> 01:15:17.439
He's just like, uh, we're
speed it up. It's next week.
1015
01:15:18.880 --> 01:15:24.800
There was destroyed bringing on for those
who are wondering, that is not
1016
01:15:24.840 --> 01:15:28.479
able to be done here in the
It is fixed. There's a fixed election
1017
01:15:28.560 --> 01:15:31.359
tomorrow to see if we can get
tightened out. You're right. So we
1018
01:15:31.359 --> 01:15:35.479
were last week in the office.
We're talking about the Strategic Petroleum Reserve,
1019
01:15:36.000 --> 01:15:43.880
and Biden had mentioned that he had
helped replenish some of the Strategic Petroleum Reserve.
1020
01:15:44.119 --> 01:15:47.359
Never mind, he's the one that
drained it. The capacity of the
1021
01:15:47.439 --> 01:15:55.359
Strategic Petroleum Reserve, which again is
Assault Caves in the Louisiana Texas border area.
1022
01:15:56.079 --> 01:15:58.960
You know it's salt caves. Yeah, that's cool. Yep. The
1023
01:15:59.000 --> 01:16:03.720
capacity seven hundred and fourteen million barrels
seven fourteen. On June of twenty twenty.
1024
01:16:04.359 --> 01:16:09.960
It was six hundred and fifty six
million barrels before Biden decided that he
1025
01:16:10.079 --> 01:16:15.119
was going to lower gas prices by
drawing it down aggressively. That didn't happen.
1026
01:16:15.159 --> 01:16:17.000
By the way, that the lowering
of gas prices. The drawing down
1027
01:16:17.039 --> 01:16:23.680
aggressively did happen, It maybe prevented
it from spiking to be fair possible June
1028
01:16:23.720 --> 01:16:27.840
of twenty twenty, it was six
fifty six June of twenty three, three
1029
01:16:27.920 --> 01:16:31.720
years later, three forty six cut
in half. I'm sorry, but why
1030
01:16:31.720 --> 01:16:35.399
would that have prevented it from spiking? Because the more oil that you have
1031
01:16:35.479 --> 01:16:39.840
available, the less demand for it. Because you have the supply there,
1032
01:16:40.119 --> 01:16:43.079
you're able to bring it to market
for free. You already have it.
1033
01:16:43.119 --> 01:16:46.479
So the Biden said he'd been replenishing
in the Strategic Petroleum Reserve. We have
1034
01:16:46.520 --> 01:16:51.840
now again capacity seven to fourteen normal
around six fifty. We have moved up
1035
01:16:53.000 --> 01:16:58.079
to three seventy two, seven percent
above the low, still only fifty two
1036
01:16:58.159 --> 01:17:02.199
percent of capacit. So yes,
he is right. They have been putting
1037
01:17:02.279 --> 01:17:10.000
oil back into Strategic Petroleum Reserve,
just not really compared relative to what he
1038
01:17:10.079 --> 01:17:12.239
drained it, but not much so. I mean, if we did the
1039
01:17:12.359 --> 01:17:15.039
numbers, maybe like ten percent he's
put back in from the if you seeven
1040
01:17:15.199 --> 01:17:18.159
you know I'm saying one hundred percent
from like the drop. Yeah, you're
1041
01:17:18.239 --> 01:17:21.319
dropped by fifty percent. Okay,
so he put seven percent back in.
1042
01:17:21.439 --> 01:17:26.720
Okay, so you fifty percent from
the you're still down about eighty six.
1043
01:17:26.760 --> 01:17:30.800
You were talking about the airlines,
you know, Southwest Airlines already down fourteen
1044
01:17:30.840 --> 01:17:34.239
percent over the last twelve months,
down another four percent on Wednesday after they
1045
01:17:34.239 --> 01:17:40.279
cut their second quarter revenue outlook due
to a shift in booking behavior. This
1046
01:17:40.399 --> 01:17:45.399
is interesting. Southwest says it anticipates
revenue per available seat mile, which would
1047
01:17:45.479 --> 01:17:50.000
be ticket prices right, to decline
between four and five percent over a year
1048
01:17:50.000 --> 01:17:55.439
ago. See that's so interesting because
that's SeaBASS mentioned. You have the whole
1049
01:17:55.640 --> 01:17:58.880
you know, we have to pay
for your meals or whatever, your not
1050
01:17:59.000 --> 01:18:00.720
ticket if you if it gets canceled. And it's like they're saying that the
1051
01:18:00.760 --> 01:18:03.720
ticket price went down, you would
expect them to go up. Yeah,
1052
01:18:03.880 --> 01:18:08.119
I really it. Again, I'm
no expert, but it certainly seems like
1053
01:18:08.159 --> 01:18:12.000
they're Now we'll be back with the
final segment of The Money Matters Show after
1054
01:18:12.079 --> 01:18:15.239
this break. We thank you for
joining us. We'll be right back.
1055
01:18:15.279 --> 01:18:16.800
Welcome back to the Money Matter Show. My name is Todd Glick. I'm
1056
01:18:16.800 --> 01:18:20.640
here with Sebastian Boards. Senior David
Shurewood Dean Greenberg will be joining us here,
1057
01:18:20.960 --> 01:18:26.880
and we talked a little about this
strategic petroleum reserve that has been slightly
1058
01:18:26.920 --> 01:18:30.640
increased over the last year. And
if you actually look at just our US
1059
01:18:30.840 --> 01:18:35.079
energy production, we've were at an
all time high, going back from even
1060
01:18:35.079 --> 01:18:41.039
the nineteen fifties. We've never produced
more primary energy production units than ever before.
1061
01:18:41.079 --> 01:18:44.279
And this is on a British thermal
units. That's how you measure it.
1062
01:18:44.359 --> 01:18:46.800
You yep, I didn't know that, but this is what really pointed
1063
01:18:46.800 --> 01:18:51.000
out to me. So crude oil
production grew nine percent from twenty twenty two
1064
01:18:51.119 --> 01:18:56.960
to twenty twenty three, but it
increased sixty nine percent since twenty thirteen.
1065
01:18:57.560 --> 01:19:00.479
Okay, hold that number of mine, because if you look at renewable energy
1066
01:19:00.520 --> 01:19:04.279
sources, it only increased one percent
from twenty twenty two to twenty twenty three,
1067
01:19:04.319 --> 01:19:09.760
and since twenty thirteen it's only increased
twenty eight percent. The reason I'm
1068
01:19:09.760 --> 01:19:14.119
bringing this up is if any time
in your life has the climate crisis has
1069
01:19:14.159 --> 01:19:16.319
ever been in the front page of
news more in the last ten years.
1070
01:19:16.760 --> 01:19:20.680
No, And I always say,
the air has never been cleaner in my
1071
01:19:20.800 --> 01:19:25.359
life. The water has never been
cleaner, right in my life, And
1072
01:19:25.399 --> 01:19:28.439
so why is there a crisis all
of a sudden. And to that point,
1073
01:19:28.800 --> 01:19:32.880
if there is a crisis, why
did we do sixty nine percent increase
1074
01:19:32.880 --> 01:19:36.079
from twenty thirteen to twenty twenty three
and oil and only a twenty eight percent
1075
01:19:36.119 --> 01:19:40.600
increase in renewable energy, which we
had a lower amount of renewable energy.
1076
01:19:40.600 --> 01:19:44.720
It's easier to increase the lower number, right, So it's just showing the
1077
01:19:44.760 --> 01:19:48.600
contradictions, the hypocritical, it's not
happening. They talk a big game,
1078
01:19:48.640 --> 01:19:51.960
but they don't actually put it into
action. No, Right, let's good
1079
01:19:53.000 --> 01:19:55.560
on paper. Hey, speaking of
looking good on paper, how's your four
1080
01:19:55.600 --> 01:19:58.920
O one K doing? Everybody's pretty
happy with their four O one k?
1081
01:19:59.039 --> 01:20:03.600
Right? Happy. A Vanguard survey
last week reported that Americans now have twenty
1082
01:20:03.760 --> 01:20:08.680
nine percent more money in their four
to one k than they did twelve months
1083
01:20:08.720 --> 01:20:12.159
ago. Now, obviously it didn't
go up in value twenty nine percent,
1084
01:20:12.239 --> 01:20:15.960
but they're making contributions. Right,
What do you think the average amount in
1085
01:20:16.000 --> 01:20:20.520
a four to one K in the
United States is after going up twenty nine
1086
01:20:20.560 --> 01:20:28.239
percent? Meeting or average, median
or mean? I think this was?
1087
01:20:28.399 --> 01:20:32.279
Uh, this was the average,
the average, the mean, the meaning.
1088
01:20:32.319 --> 01:20:36.880
Okay, so I'm gonna say,
okay, I looked at the support.
1089
01:20:36.880 --> 01:20:40.439
I'm not one hundred and twenty k. One hundred twenty k the average
1090
01:20:40.439 --> 01:20:44.279
amount in a four to one K
as of last week. How what do
1091
01:20:44.319 --> 01:20:46.199
you think? I'm pretty sure I
looked at the support, so I don't
1092
01:20:46.199 --> 01:20:49.439
want to Okay, look thirty five
grand Wow? I was about to say
1093
01:20:49.479 --> 01:20:56.119
forty four grands. Yeah, so
if you've got one hundred eight hundred and
1094
01:20:56.199 --> 01:20:59.159
your four to one K, you're
doing pretty well. Yeah, you know,
1095
01:20:59.239 --> 01:21:00.520
And and that brings up an interesting
point. Go ahead what I was
1096
01:21:00.560 --> 01:21:03.600
saying. On that report. It
also said the average contribution rate it's like
1097
01:21:03.600 --> 01:21:08.399
eleven percent. I was like,
whoa, that's totally not true for most
1098
01:21:08.439 --> 01:21:11.000
of people. But if you think
about the people who max out the four
1099
01:21:11.079 --> 01:21:13.560
one ks, okay, then maybe
that makes sense. And you're see an
1100
01:21:13.479 --> 01:21:15.279
awful lot of people when you do
the financial plans and see what they're doing.
1101
01:21:15.319 --> 01:21:20.199
And the other thing that we hear
a lot about is people that have
1102
01:21:20.319 --> 01:21:23.840
a million dollars, let's say,
in their four to one K or a
1103
01:21:23.880 --> 01:21:29.399
million dollars in retirement savings, think
that everybody has a million dollars. They
1104
01:21:30.760 --> 01:21:33.000
do not. You know, our
average account size here is probably three point
1105
01:21:32.960 --> 01:21:38.720
fifty. I think it's probably pretty
close right around. And two thirds of
1106
01:21:38.760 --> 01:21:43.920
people over the age sixty five live
on just social security two thirds. So
1107
01:21:44.199 --> 01:21:48.319
if you're setting on five hundred seven
hundred a million, no, everybody doesn't
1108
01:21:48.359 --> 01:21:53.279
have that kind of money. And
if you know what you're doing, if
1109
01:21:53.279 --> 01:21:55.319
you know how to cut your own
hair, you don't need a barber.
1110
01:21:55.840 --> 01:21:58.359
If you don't know what you're doing, that's a lot of money to be
1111
01:21:58.479 --> 01:22:01.760
rolling the dice with to young people. You know, when if you're forty
1112
01:22:02.000 --> 01:22:05.760
thirty, even twenty, you listen
to the show and you're you know,
1113
01:22:06.000 --> 01:22:10.560
five hundred thousand million dollars, I
mean, that's that's good. Well,
1114
01:22:10.560 --> 01:22:13.880
it's not gonna be good when you
get to that retire because inflation, right,
1115
01:22:13.920 --> 01:22:15.600
so it's always going to be you
know, being a millionaire twenty years
1116
01:22:15.600 --> 01:22:18.960
ago was a lot different than being
millionaire today. So as inflation, I
1117
01:22:18.960 --> 01:22:21.439
mean, that's what we're all battling. Obviously, we have taxes on one
1118
01:22:21.479 --> 01:22:25.800
side and inflation on the other.
And that's why having the financial plan so
1119
01:22:25.840 --> 01:22:29.000
important. You got to understand,
how is it your money gonna grow?
1120
01:22:29.039 --> 01:22:31.479
How are we going to outpace inflation? To make sure that you're not paying
1121
01:22:31.520 --> 01:22:34.079
more to the government than you need
to be. Just use the rule of
1122
01:22:34.119 --> 01:22:38.560
seventy two. Most most people don't. It's actually a rule of sixty nine
1123
01:22:38.640 --> 01:22:41.520
point eight, I think, technically, but they call it the rule of
1124
01:22:41.560 --> 01:22:45.159
seventy two. Any rate of return, whatever rate of return you want to
1125
01:22:45.159 --> 01:22:49.960
pick, divided into the number seventy
two will give you roughly how long it'll
1126
01:22:49.960 --> 01:22:54.560
take for the money to double.
Called the rule of seventy two. And
1127
01:22:55.119 --> 01:23:00.039
it's not widely known, but it
should be. So one hundred percent take
1128
01:23:00.079 --> 01:23:04.800
one year, not even takes seven
months, right, something like that,
1129
01:23:04.920 --> 01:23:09.920
or seven what seven seven point two
percent of a year, yeah, right,
1130
01:23:10.000 --> 01:23:14.199
which is about eight months something like
that. Anyway, again, six
1131
01:23:14.279 --> 01:23:17.079
percent takes twelve years to double.
Twelve percent takes six years to double.
1132
01:23:17.399 --> 01:23:25.399
So the value of compounding interest is
real and it's significant. And we we
1133
01:23:25.479 --> 01:23:30.399
run into people here from time to
time, not infrequently, who did not
1134
01:23:30.560 --> 01:23:32.279
make a lot of money in their
life. They just didn't spend it.
1135
01:23:32.319 --> 01:23:35.800
And I found from doing this for
fifty years that there's two ways to get
1136
01:23:35.920 --> 01:23:42.560
rich. Make a lot of money
or don't spend any and they both work.
1137
01:23:43.359 --> 01:23:46.279
And we see we see both kinds
here. So I mean, and
1138
01:23:46.359 --> 01:23:49.479
if you're young, the most valuable
asset is time. I mean we say
1139
01:23:49.479 --> 01:23:54.359
this and drum hit the drunk because
it's so important. I mean, you're
1140
01:23:54.359 --> 01:23:58.039
not going to see the big returns
I mean, and the big increases in
1141
01:23:58.119 --> 01:24:00.319
dollar value the first twenty years,
but it's the second half of that,
1142
01:24:00.680 --> 01:24:05.239
the last twenty years that makes such
a big difference. That compounding. It
1143
01:24:05.439 --> 01:24:10.039
just is incredible, the exponential part
about it. And that's what people don't
1144
01:24:10.079 --> 01:24:13.520
understand. I've said this on the
show before, But if you folded a
1145
01:24:13.520 --> 01:24:15.960
piece of paper on top of itself, and you can do it theoretically as
1146
01:24:15.960 --> 01:24:18.479
many times as you want, how
many times do you have to do that
1147
01:24:18.600 --> 01:24:23.960
to reach from here the earth to
the moon. Most people will say hundreds,
1148
01:24:24.000 --> 01:24:26.520
thousands of times you'd have to fold
a piece of paper. The answer
1149
01:24:26.600 --> 01:24:30.079
is only forty two, right,
only forty two times. And that's the
1150
01:24:30.119 --> 01:24:35.960
power of compounding. That's absolutely easy
to visualize. And well put Chipotle one
1151
01:24:35.960 --> 01:24:44.079
of the favorite stocks on the market. Did there really historic fifty for one
1152
01:24:44.439 --> 01:24:48.880
stock split? You've seen anything bigger? Never? On all I've never seen
1153
01:24:48.880 --> 01:24:53.840
a fifty. When I'm sure you've
seen a reverse split. Yeah, I've
1154
01:24:53.840 --> 01:24:57.880
never seen a fifty for one stock
split, ten for one, fifteen for
1155
01:24:57.960 --> 01:25:01.000
one, twenty for one, never
fifty one. And the stock responded by
1156
01:25:01.760 --> 01:25:04.920
dropping. I don't know why Costco
is not doing this? You know,
1157
01:25:04.960 --> 01:25:10.640
who needs to do a stock split? AutoZone? AutoZone? Not about this
1158
01:25:10.720 --> 01:25:14.960
stock? Yeah? Do you a
a how much does it trade for?
1159
01:25:15.479 --> 01:25:18.359
I? Okay, for one hundred
and twenty five? Oh that's it,
1160
01:25:18.960 --> 01:25:23.800
AutoZone. Yeah, AutoZone, you're
gonna you're gonna your mind. Yeah,
1161
01:25:24.079 --> 01:25:30.439
but twenty five hundred dollars a share
AutoZone azy? Oh okay, Yeah,
1162
01:25:30.600 --> 01:25:32.960
it makes no sense. We looked
it up today because that's how it anich
1163
01:25:33.000 --> 01:25:36.479
Man. It really did great during
the pandemic. Yeah, well it's up
1164
01:25:36.479 --> 01:25:41.239
about two hundred percent since the pandemic, and yeah, it's obviously done great.
1165
01:25:41.279 --> 01:25:44.399
But I was just like, I
was saw it in some account and
1166
01:25:44.399 --> 01:25:47.119
I was doing a portfolio twenty five
hundred share azy, Oh it makes no
1167
01:25:47.359 --> 01:25:49.880
I didn't even know about the sock. I'm like, why are they doing
1168
01:25:49.880 --> 01:25:53.920
a stock split? But that brings
me up on portfolio reviews. We're doing
1169
01:25:53.920 --> 01:25:56.600
a portfolio review for a client,
you know, putting in our risk alivees
1170
01:25:56.680 --> 01:26:00.680
and finding the risk score and that's
why I saw this stock in and so
1171
01:26:00.960 --> 01:26:03.560
our risk analyzer will actually give you
a risk word for our zone stock.
1172
01:26:03.560 --> 01:26:06.560
It gives you risk ord for Walmart
stock, and then as a tandem of
1173
01:26:06.600 --> 01:26:11.079
your entire composition of your entire portfolio, it gives you a score for your
1174
01:26:11.119 --> 01:26:14.920
actual portfolio as well. So matching
that up with your risk tolerance, especially
1175
01:26:14.960 --> 01:26:17.159
when we're at all time highs here, it's very important to understand where you
1176
01:26:17.159 --> 01:26:19.720
are on your risk tolerance. Do
you want to take profits here? Do
1177
01:26:19.720 --> 01:26:23.840
you want to keep being aggressive?
This is the time to revisit to make
1178
01:26:23.880 --> 01:26:27.399
sure you're comfortable for the next six
months. And that can be related to
1179
01:26:27.439 --> 01:26:30.239
the financial plan, but it's not
necessarily a part of the financial plan to
1180
01:26:30.319 --> 01:26:33.439
have a plan. Service we offer
right exactly, and we'll do it for
1181
01:26:33.520 --> 01:26:36.600
you for free. You bring in
your portfolio, we'll plug it into the
1182
01:26:36.680 --> 01:26:41.600
risk analysis system. We're going to
give you a little seven question questionnaire.
1183
01:26:41.960 --> 01:26:44.880
You answer the seven questions, we'll
see how they match up. Yep,
1184
01:26:45.079 --> 01:26:48.399
exactly. You may find out that
you're being more conservative or more aggressive than
1185
01:26:48.439 --> 01:26:54.039
you ever dreamed Sebastian, you came
to me last week about Whirlpool. I
1186
01:26:54.039 --> 01:26:58.159
don't want to talk about it.
About Whirlpool. It is down twenty six
1187
01:26:58.239 --> 01:27:02.279
percent this year, just a whole
orb looking chart, not earning the dividend.
1188
01:27:02.359 --> 01:27:05.760
Dividend cut seemed like it's imminent.
And the reason that I was kind
1189
01:27:05.760 --> 01:27:09.880
of attracted to it at that point
was because they were offering that seven point
1190
01:27:10.319 --> 01:27:13.560
whatever percent dividends exact right, which
they weren't earning it. You and I
1191
01:27:13.600 --> 01:27:15.600
were talking about how that's not sustainable
and they're probably gonna end up cutting it.
1192
01:27:15.760 --> 01:27:19.439
So it caused me to stay quite
away from that stuck. But also
1193
01:27:19.800 --> 01:27:21.920
the thing that I was thinking about
the stuck, right, A lot of
1194
01:27:21.920 --> 01:27:26.920
people, a lot of people do
finance the washing dryer ins their home appliances
1195
01:27:28.119 --> 01:27:31.119
when they financed it at higher rates
or when rates are high. Less people
1196
01:27:31.119 --> 01:27:34.880
are going to finance that right well, rates coming down. That's kind of
1197
01:27:34.880 --> 01:27:38.319
my thinking, maybe another interest rate
play, kind of like a first Solar
1198
01:27:38.359 --> 01:27:41.079
type of deal. It was.
It was an interesting thing. We talked
1199
01:27:41.079 --> 01:27:44.680
about it and decided that probably wasn't
the right place to have money, and
1200
01:27:44.720 --> 01:27:49.399
then on Wednesday it jumped seventeen percent
after Bosch said they're considering buying the company.
1201
01:27:50.079 --> 01:27:54.239
I think that's one of the few
things in the world where when a
1202
01:27:54.279 --> 01:28:00.600
company is buying another company, that's
there's no alert for that, and you
1203
01:28:00.640 --> 01:28:02.399
can't invest. You can't invest on
that pape. No, you can't invest
1204
01:28:02.479 --> 01:28:04.800
that well, because that's insider trading
first off, So if you did do
1205
01:28:04.840 --> 01:28:09.880
that, you can't invest on speculation
right that there's going to be a takeover
1206
01:28:09.920 --> 01:28:12.560
because if it doesn't come, you've
got a piece of crap stock. Yeah,
1207
01:28:12.560 --> 01:28:15.640
I mean, you're buying a business
model. You're not buying news,
1208
01:28:15.680 --> 01:28:18.600
you're not buying hype. And so
when we're doing allocations position I see Best
1209
01:28:18.600 --> 01:28:20.399
said, you're looking at it from
a business model, per se. It
1210
01:28:20.439 --> 01:28:25.119
doesn't make sense on a business model, then it doesn't make sense, you
1211
01:28:25.119 --> 01:28:28.359
know what I mean, you're not
playing a game stopware. Well, it
1212
01:28:28.479 --> 01:28:30.439
gets its war. It's really popular
right now, and that's not how you
1213
01:28:30.439 --> 01:28:34.159
play stocks. Because of that,
International papers of fifty percent in the last
1214
01:28:34.199 --> 01:28:39.359
twelve months on takeover speculation down ten
percent on Thursday, as one of their
1215
01:28:39.359 --> 01:28:45.720
competitors said they're not interested in acquiring
the company. When you're invest on the
1216
01:28:45.760 --> 01:28:50.279
basis of fundamentals, okay, or
if you're a technical analysis who likes breakout,
1217
01:28:50.800 --> 01:28:56.359
invest on that basis. Do not
invest on the odds that the company
1218
01:28:56.399 --> 01:29:00.439
is going to be taken over because
and I had no idea about the coming
1219
01:29:00.479 --> 01:29:01.760
in and doing that to work.
Who would, right, I mean that
1220
01:29:01.800 --> 01:29:05.159
would be inside of information. Of
course, we had no idea and no
1221
01:29:05.560 --> 01:29:08.960
very few people had any idea,
or the stock would have been a lot
1222
01:29:09.039 --> 01:29:12.319
higher than it was. It's gotten
extremely lucky. Yeah, no, that
1223
01:29:12.319 --> 01:29:16.800
would have been extremely like It's kind
of like the Gougenheim analyst who picked up
1224
01:29:16.880 --> 01:29:20.039
like, I'll say good, next
week's July fourth. What's your favorite July
1225
01:29:20.119 --> 01:29:24.199
fourth meal? Well? Yeah,
favorite July fourth meal? Yeah? Do
1226
01:29:24.239 --> 01:29:26.479
you do hot dogs? Burgers?
Brought? Would give him my choice.
1227
01:29:26.479 --> 01:29:30.520
I'll do Mexican every time on July
fourth. I don't care on American's independence,
1228
01:29:30.520 --> 01:29:34.039
stay going. I like how I
like Hamburger's better than hot Thank you.
1229
01:29:34.079 --> 01:29:38.760
You're going for some ribs this year? Ribs Ribs, I'm with you,
1230
01:29:38.840 --> 01:29:41.640
hot dogson. You know I want
the Hebrew Nationals. You know,
1231
01:29:41.640 --> 01:29:44.079
we got a week coming up where
there's probably not going to be a whole
1232
01:29:44.119 --> 01:29:45.960
lot of work done. On Wall
Street, but we'll see how it shakes
1233
01:29:46.000 --> 01:29:49.079
out. We thank you for joining
us on this Sunday morning. We've come
1234
01:29:49.119 --> 01:29:53.640
to the end of the show.
We want to be happy, and of
1235
01:29:53.680 --> 01:29:56.159
course we want to be healthy.
If we're not healthy, we're not happy.
1236
01:29:56.399 --> 01:29:58.159
But at the end of the day, what we're trying to be a
1237
01:29:58.199 --> 01:30:02.199
Greenberg Financial is cofitable. See you
next week. M
