Analyzing the Recent Downturn and Strategies for Financial Planning

1 00:00:00,880 --> 00:00:04,919 Good morning everybody. It's that time once again. It's Sunday morning, eight 2 00:00:04,919 --> 00:00:10,039 o'clock. It's two hours of the Money Matters Show coming to you from being 3 00:00:10,080 --> 00:00:15,199 Greenberg and the crew from Greenberg Financial Group. We will talk about what's going 4 00:00:15,240 --> 00:00:19,199 on in the country. We'll talk about what's going on economically, We'll talk 5 00:00:19,280 --> 00:00:22,039 about the Fed. We're going to talk about interest rates. We're gonna talk 6 00:00:22,079 --> 00:00:30,600 about things that are affecting your portfolio. It's been a tough month. We 7 00:00:30,679 --> 00:00:33,920 did expect it, though, and we've been mitigating risking. We told you 8 00:00:33,960 --> 00:00:37,560 that mitigating risk doesn't mean you don't lose. It means that you don't lose 9 00:00:37,560 --> 00:00:44,079 as much, and that is the whole thing behind trying to manage portfolios. 10 00:00:45,399 --> 00:00:49,920 So we had another week of down moves of two percent to more right across 11 00:00:49,960 --> 00:00:55,280 the board in the Dow, SMP, NAZDAC and even the SP five hundred 12 00:00:55,359 --> 00:00:59,960 equal waiting was down just the same thing, pretty much as the SMP five 13 00:01:00,119 --> 00:01:03,760 hundred for the month of the nazacks down seven and a half. You got 14 00:01:03,799 --> 00:01:10,239 the SP five hundred down almost five to down down three and which means, 15 00:01:10,400 --> 00:01:12,959 uh, you know, the Dow's only up four percent for the year SAP 16 00:01:14,120 --> 00:01:19,319 is up thirteen and the nazacks up twenty seven. This is when the risk 17 00:01:19,439 --> 00:01:23,239 tolerance comes in. This is when you kind of figure out, Okay, 18 00:01:23,239 --> 00:01:26,319 where am I sitting when I'm doing. The one thing I'm gonna tell you 19 00:01:26,719 --> 00:01:30,480 is you can never catch the top and you're not gonna catch the bottom. 20 00:01:30,519 --> 00:01:33,280 And as this MARKA was rallying, we kept telling you there's you know, 21 00:01:33,400 --> 00:01:37,719 there's risk here, and we didn't like the evaluations. And I don't know 22 00:01:37,879 --> 00:01:41,400 if we're gonna bounce here or keep going lower. I know this is not 23 00:01:41,519 --> 00:01:49,159 a lot of good support unless we come a little bit lower. You remember, 24 00:01:49,159 --> 00:01:52,359 we broke out of that thirty nine four thirty nine hundred on the SDP 25 00:01:52,519 --> 00:01:57,040 four thousand, and we ran all the way up to almost I don't know, 26 00:01:57,200 --> 00:02:00,400 almost forty six hundred, not too long ago, and that we're back 27 00:02:00,439 --> 00:02:06,799 down to forty three hundred level. So we've lost almost three hundred points, 28 00:02:06,879 --> 00:02:10,000 not two hundred and sixty points itself from the highs, which gives us the 29 00:02:10,120 --> 00:02:16,759 opportunity to look for a tradeable situation. But if you're a long term investor, 30 00:02:17,039 --> 00:02:21,039 you're not you know, I wouldn't be stepping in yet it was still 31 00:02:21,080 --> 00:02:23,120 in August. Then we got September, and then we got part of our 32 00:02:23,199 --> 00:02:29,400 Noba. These three months were always the months of the seasonality that bothered me. 33 00:02:30,120 --> 00:02:32,159 It's just seems for some reason, when we have market declients and it's 34 00:02:32,199 --> 00:02:36,479 not all the time, it's due in these three months, and usually we 35 00:02:36,599 --> 00:02:40,759 start in August, continue in September, bottom mount in October. Now is 36 00:02:40,800 --> 00:02:46,360 this going to be different? I don't know. I know this. Valuations 37 00:02:46,400 --> 00:02:51,479 are still high, interest rates are gonna go higher, and we need to 38 00:02:51,520 --> 00:02:57,039 be cautious if valuations get to the point I'm starting to get excited about it, 39 00:02:57,080 --> 00:03:00,000 which means we have to come down a lot more from where we are, 40 00:03:00,080 --> 00:03:04,520 maybe about six eight hundred more SMP points, which, if you think 41 00:03:04,520 --> 00:03:09,439 about it, that's what almost twenty percent. That gives us the opportunity to 42 00:03:09,520 --> 00:03:15,080 then be much more bullish going forward. I am very concerned with the banks. 43 00:03:16,199 --> 00:03:20,560 I've been concerned with the banks, and I'm gonna tell you why after 44 00:03:20,599 --> 00:03:23,960 I give you a disclaimer. The Morning Amounted Show is brought to you by 45 00:03:24,000 --> 00:03:30,080 Greenberg Financial Group. Greenberg Financial Group is both a registered investment advisory and a 46 00:03:30,120 --> 00:03:32,840 broke a dealer. We'll registered with the SEC, members of Finery, members 47 00:03:32,840 --> 00:03:37,879 of SIPPIC. On this show, we talk about different products and different strategies, 48 00:03:38,159 --> 00:03:43,599 and we all have different ideas. Please understand what your risk tolerance is 49 00:03:43,599 --> 00:03:47,280 and what the risk of the investment is. I can't over emphasize that enough 50 00:03:49,400 --> 00:03:51,919 because when the markets go down, you don't want to get scared. When 51 00:03:51,960 --> 00:03:54,960 the markets go up, you don't want to get greedy. Fear and greed 52 00:03:55,039 --> 00:04:00,599 is what drives the markets. It always hasn't always will. What we have 53 00:04:00,639 --> 00:04:06,159 to do is be careful that we don't mix up our fear and greed on 54 00:04:06,199 --> 00:04:11,960 the way we want to invest. And it's so easy to do. It's 55 00:04:11,960 --> 00:04:15,680 so easy to saying it's gonna go higher and higher. It's so easy to 56 00:04:15,680 --> 00:04:16,839 say, I can't buy because it's going to go lower and lower. I 57 00:04:16,879 --> 00:04:23,680 gotta sell everything. The one strategy I can promise you you won't make money. 58 00:04:23,720 --> 00:04:28,160 I can guarantee you won't make money. Buy high, sell low. 59 00:04:28,959 --> 00:04:32,600 Never worked, never will work. You gotta buy low, sell high, 60 00:04:33,279 --> 00:04:35,519 and you're never gonna buy at the bottom of You're never gonna sell at the 61 00:04:35,560 --> 00:04:43,319 top. And you have to do allocations. You gotta do different industries, 62 00:04:43,399 --> 00:04:49,480 different companies different indexes, and you need to know how to mitigate risk. 63 00:04:50,480 --> 00:04:55,240 Now there'll be a time that we'll say, don't worry about it, just 64 00:04:55,319 --> 00:04:59,000 keep banting as the markets pull back. And if you remember from two thousand 65 00:04:59,160 --> 00:05:01,839 nine or so to almost twenty seventeen eighteen, we didn't even have a three 66 00:05:01,920 --> 00:05:06,519 percent pullback. This is the first big pullback we've had in a while. 67 00:05:06,720 --> 00:05:10,519 But we've had such a run up in the first half. You know, 68 00:05:10,560 --> 00:05:14,920 it just doesn't continue to going all those semings, those technology stocks have to 69 00:05:14,959 --> 00:05:18,399 take take a break. Five of those Magnificent seven as we call them, 70 00:05:19,279 --> 00:05:25,000 down more than ten percent. Now people don't want to buy them. But 71 00:05:25,040 --> 00:05:29,120 if you took some money off the top as they were going higher, I'd 72 00:05:29,160 --> 00:05:31,759 probably wait a little bit longer. But somewhere between now in the middle of 73 00:05:31,759 --> 00:05:36,720 October, I would be looking to start dollar cost savaging back into them if 74 00:05:36,720 --> 00:05:43,079 they if they fall. You know, people laughed at us. What you 75 00:05:43,120 --> 00:05:45,879 know, I kind of said. One of the down and out stocks that 76 00:05:45,959 --> 00:05:50,040 got beat up that probably pop it sometime was Target. Target last week went 77 00:05:51,120 --> 00:05:57,480 a lot up almost seven eight points, even though they didn't have the best 78 00:05:57,560 --> 00:06:00,360 journeys. Didn't do things like that, and of course we all know why 79 00:06:00,399 --> 00:06:06,839 they got themselves in trouble. But good companies figure out ways to change people's 80 00:06:06,879 --> 00:06:12,319 minds. Forget and you move on if it's the products that you need. 81 00:06:14,839 --> 00:06:20,199 So we're in a position right now that I think that we're not done going 82 00:06:20,240 --> 00:06:27,040 down. And I've told you this for a while, and I would be 83 00:06:27,120 --> 00:06:30,079 very cautious through the next few months. But if you're a trader, there 84 00:06:30,279 --> 00:06:36,040 will be tradeable bounces here and that's what we'll look for. For some people. 85 00:06:36,360 --> 00:06:41,439 Others we're gonna stay with cash, maybe take a little bit more money 86 00:06:41,439 --> 00:06:45,480 off the table, but we're gonna look for opportunities and stocks that we think 87 00:06:45,480 --> 00:06:49,639 are coming down the prices we like, and we'll stop positioning ourselves again. 88 00:06:51,319 --> 00:06:56,199 If we happen to get into something and then a pop ten percent pretty quickly, 89 00:06:56,240 --> 00:07:00,319 we might take that off the table. I'm not convinced this at the 90 00:07:00,360 --> 00:07:06,120 time to jump in with both feet, but it's not the time that you 91 00:07:06,199 --> 00:07:11,839 just sell heavything you go to cash either. You know people, Oh you 92 00:07:11,839 --> 00:07:18,560 can do it. Market timing. Market timing does not work on portfolios that 93 00:07:18,600 --> 00:07:24,480 you're trying to build wealth over time. You're trying to market time for trading, 94 00:07:24,519 --> 00:07:28,279 that's different and actually that whole thing. You know, you kind of 95 00:07:28,319 --> 00:07:30,959 have an idea which where the market's going, but if you're trading, I 96 00:07:30,000 --> 00:07:35,360 mean you're in and out in days or day or hours or minutes, it's 97 00:07:35,399 --> 00:07:41,959 different. So when I talk about the trend, we've broken down resist from 98 00:07:42,240 --> 00:07:46,800 support levels that we're resistant levels. We're breaking down those resistant levels that we're 99 00:07:46,800 --> 00:07:53,959 turning into support levels to bring us lower. Technicals work sometimes in this type 100 00:07:53,959 --> 00:07:56,839 of markets because you try to find, Okay, where's a good place to 101 00:07:56,879 --> 00:08:03,439 get in. As we moved through this, we'll look for those opportunities. 102 00:08:03,480 --> 00:08:05,399 So if you really think about it, we came up from thirty nine one 103 00:08:05,480 --> 00:08:09,120 hundred to four thousand. There was that was a resistance area there for a 104 00:08:09,120 --> 00:08:13,800 while, and we broke up and we went pretty nicely, almost fifteen percent 105 00:08:13,879 --> 00:08:20,879 higher. So how far will it come back down? Who knows. Maybe 106 00:08:20,879 --> 00:08:24,079 we come back down to forty two hundred level, maybe get a bounce off 107 00:08:24,120 --> 00:08:28,759 there, and then we work ourselves into maybe coming back down into the high 108 00:08:28,800 --> 00:08:33,960 three thousands again, thirty seven hundred, thirty five hundred, and they think 109 00:08:33,960 --> 00:08:37,480 at that time it would be a pretty good place to look to buy back 110 00:08:37,519 --> 00:08:46,799 in So what makes us go down like that? I see some red flags 111 00:08:46,840 --> 00:08:50,000 out there, and it all has to do with liquidity and the banks. 112 00:08:52,919 --> 00:08:58,200 It started in obviously in the early spring when we start having some bank failures. 113 00:08:58,440 --> 00:09:03,600 We got paid asked that. But now you know, no one's really 114 00:09:03,600 --> 00:09:09,480 paying attention to it. But the raiding the rating agencies are starting to downgrade 115 00:09:11,159 --> 00:09:16,639 our debt, which you know already that started to move down a little bit 116 00:09:16,639 --> 00:09:22,320 in the markets. Then they're not talking about down grading, downgrading a bunch 117 00:09:22,320 --> 00:09:28,480 of banks and probably a lot of the big regional banks because they're looking at 118 00:09:28,559 --> 00:09:33,240 the fact of where interest rates are going, with the fact that we still 119 00:09:33,240 --> 00:09:39,440 have inflation. And I know pol inflations come down. Yes, it has 120 00:09:39,480 --> 00:09:46,000 come down, because that's what happens when you stop spending money. But the 121 00:09:46,080 --> 00:09:52,799 biggest inflation we have right now is a housing because people are locked in it 122 00:09:52,879 --> 00:09:56,679 interest rates three and a half percent down to two and a half percent, 123 00:09:56,639 --> 00:10:01,240 they're not going to go ahead and sell the house, so there's no inventory. 124 00:10:01,799 --> 00:10:03,879 Why somebody want to come out of a three to three and a half 125 00:10:03,919 --> 00:10:09,360 percent mortgage to get a seven and a half percent mortgage. Then you have 126 00:10:09,440 --> 00:10:15,480 those that are scrambling to buy houses with very little inventory, that they're driving 127 00:10:15,559 --> 00:10:20,320 up sea weighted homes hundreds of thousands of dollars of where they were a couple 128 00:10:20,320 --> 00:10:26,480 of years ago, with the idea that they could afford the mortgage and go 129 00:10:26,519 --> 00:10:33,960 ahead and fix it up over time and do those things. Most people in 130 00:10:35,000 --> 00:10:37,679 their real estate business the other best. Oh, it's not gonna stop. 131 00:10:37,279 --> 00:10:43,000 It's gonna keep going. I'm gonna tell you it's gonna stop because eventually, 132 00:10:43,440 --> 00:10:46,720 like in two sudden, people aren't gonna be able to afford it. You 133 00:10:46,840 --> 00:10:52,240 afford the mortgage, it's not the home. The reason the homes went up 134 00:10:52,360 --> 00:10:54,519 so far before because the mortgage were lower, they're able to buy it. 135 00:10:54,559 --> 00:10:58,639 Now, it's the scarcity. Well, people aren't going to leave their homes 136 00:10:58,720 --> 00:11:05,799 right now go buy another home. They're not building a lot. So on 137 00:11:05,879 --> 00:11:09,720 the short one, you're gonna see prices probably elevate a little bit. But 138 00:11:09,799 --> 00:11:13,039 when the interest rates get to seven and a half or eight percent for mortgages, 139 00:11:15,200 --> 00:11:20,919 you're gonna just see what I call necessity buying. But we're not doing 140 00:11:22,039 --> 00:11:28,480 anything to stop inflation. Our government is doing nothing. Biden is doing nothing 141 00:11:30,000 --> 00:11:35,519 to stop inflation. It's just naturally coming down because the Federal Reserve is making 142 00:11:35,559 --> 00:11:43,440 it too expensive to live. They want to take credit for everything. It 143 00:11:43,080 --> 00:11:52,279 blows my mind that Democrats can stand up there and talk about all the achievements 144 00:11:52,240 --> 00:11:58,840 the Biden has done and not even talk about where inflation went. They blame 145 00:12:00,320 --> 00:12:07,360 on Trump. Listen, I get it. We had a pandemic. We 146 00:12:07,480 --> 00:12:11,320 gave out tons of money. We had to do that to keep our economy 147 00:12:11,399 --> 00:12:16,759 going. But this administration had to say, hey, we can't keep giving 148 00:12:16,759 --> 00:12:20,039 out all this money. We have to stop because if we do, the 149 00:12:20,120 --> 00:12:24,039 inflation is not going to get under control. And we're going to go ahead. 150 00:12:24,120 --> 00:12:28,320 Oh, by the way, we're gonna stop and regulate all the oil 151 00:12:28,600 --> 00:12:35,960 so it's harder to drill. But also instead of us drilling and getting oil 152 00:12:37,440 --> 00:12:41,120 and giving it to our allies in Europe while there's a war going on right 153 00:12:41,159 --> 00:12:50,320 across their countries just east of them, what do we do We let them 154 00:12:50,320 --> 00:12:56,879 go get oil from Russia. Why aren't we the one benefiting from it? 155 00:12:56,000 --> 00:13:01,240 We have the biggest supply. Why are we so concerned about this ev stuff 156 00:13:01,240 --> 00:13:05,639 that you know, all these plants that control that, that go ahead and 157 00:13:05,759 --> 00:13:13,679 make electricity a fossil fuel driven. We also know that all these batteries for 158 00:13:13,799 --> 00:13:18,600 ev for mining is even worse. So we're going to be beholden to other 159 00:13:18,639 --> 00:13:26,720 countries for our electric system. We have to start thinking rationally with more common 160 00:13:26,799 --> 00:13:31,080 sense, which means a little allocation here, a little allocation there. Clean 161 00:13:31,200 --> 00:13:35,679 up the stuff. That's fine, But stop putting the fear in everyone that 162 00:13:35,720 --> 00:13:39,480 our climate change is killing everybody and it's going to destroy the world. And 163 00:13:39,559 --> 00:13:48,840 do this. The world changes changes over time, thousands of years, millions 164 00:13:48,840 --> 00:13:56,480 of years different. The only thing that's going to destroy the world right now 165 00:13:58,159 --> 00:14:05,039 would be a nuclear war. And you all, all these guys people are 166 00:14:05,080 --> 00:14:09,240 so afraid of Trump with his red buttons, playing with it at night and 167 00:14:09,320 --> 00:14:13,720 pressing it. God, that's the way the media made it sound. Now 168 00:14:13,720 --> 00:14:18,039 we have to worry about China. We gotta worry about Russia, we gotta 169 00:14:18,039 --> 00:14:22,879 worry about North Korea, we gotta worry about India. In two and a 170 00:14:22,960 --> 00:14:26,440 half years, Biden has dumb worst things and brought us to the brink of 171 00:14:26,519 --> 00:14:35,240 more military problems than any time Trump was in office. But they keep talking 172 00:14:35,279 --> 00:14:45,559 about his great achievements. What the inflation reduction in Reduction Act had nothing to 173 00:14:45,559 --> 00:14:50,200 do with reducing for inflation and everything to do with climate and bringing hips back 174 00:14:50,200 --> 00:14:52,840 here. I like that idea. I'm gonna give him credit on that one. 175 00:14:52,879 --> 00:14:58,840 I like the fact that we are bringing our technology that can hurt go 176 00:15:00,240 --> 00:15:05,440 that other countries can use against us, back to America, bring back others. 177 00:15:05,799 --> 00:15:11,159 Don't stop here our healthcare essentials. They're not back here yet. Have 178 00:15:11,200 --> 00:15:16,159 you seen that. I haven't. There's so much stuff that we can do 179 00:15:16,759 --> 00:15:20,120 and help our economy grow and grow, and then we can help others. 180 00:15:24,080 --> 00:15:28,600 Forget all the stuff that's going on between the all the stuff that the showing 181 00:15:28,679 --> 00:15:33,799 that Biden has done wrong. They go get them. Stop being okay, 182 00:15:33,840 --> 00:15:35,759 we're gonna get Trump up. We're not gonna get get them both and they 183 00:15:35,759 --> 00:15:39,480 have both done something wrong proven and get them out and get some people in 184 00:15:39,519 --> 00:15:43,799 there that we need to go ahead and do it. But but they keep 185 00:15:43,840 --> 00:15:52,480 going after Trump on Trump up ideas, indictments that make no sense. But 186 00:15:52,559 --> 00:15:54,879 yet they get away with it because the media keep pushing it and pushing it. 187 00:15:56,440 --> 00:16:02,039 That will destroy us. I mess you that. But what's great to 188 00:16:02,080 --> 00:16:07,799 see is that the people in America are starting to say you know what, 189 00:16:07,000 --> 00:16:12,000 I'm not afraid to say what I want to say. I'm not afraid to 190 00:16:12,039 --> 00:16:17,279 say I don't like the woke left. I'm not afraid to say that we 191 00:16:17,679 --> 00:16:19,519 don't like the way things are going. I'm not afraid to do these things 192 00:16:19,960 --> 00:16:23,799 and start using my voice because before they used to hide, they used to 193 00:16:23,840 --> 00:16:27,120 hides there. I can't vote for Trump, and even though they did, 194 00:16:30,919 --> 00:16:37,360 it's crazy and people are getting mad and mad and madder as we go through 195 00:16:37,399 --> 00:16:45,600 this process. I supposedly due process. It's due process on one side and 196 00:16:45,639 --> 00:16:49,360 not in the other. It's and they cannot see it. I'd be okay 197 00:16:49,399 --> 00:16:53,480 if at least someone said, yes, Biden is just as bad as Trump, 198 00:16:55,320 --> 00:16:57,360 we need to get rid of both of them. Okay, at least 199 00:16:57,360 --> 00:17:00,559 go with that you don't like Trump, or at least go ahead and look 200 00:17:00,559 --> 00:17:07,440 at your own guy. This is gonna hurt everything we're doing because we become 201 00:17:07,519 --> 00:17:11,400 polarized in Washington, which means the Republicans will only do what they think is 202 00:17:11,480 --> 00:17:17,839 right. The other guy's that, and there's no compromise. Compromise is the 203 00:17:17,880 --> 00:17:21,920 only way we're gonna move forward. You're gonna have people talking all day long 204 00:17:21,960 --> 00:17:29,839 about compromise. But until we get that compromise, it's not there. We 205 00:17:30,000 --> 00:17:37,119 need to go ahead and understand. When it comes to our energy, we 206 00:17:37,240 --> 00:17:41,680 gotta upgrade our grids. We have to upgrade the way we're doing things. 207 00:17:42,039 --> 00:17:49,119 We can't just say everybody's got to have electric costs. It doesn't work. 208 00:17:52,440 --> 00:17:57,480 You see forward losing billions and billions of dollars and a bunch of them all. 209 00:18:00,079 --> 00:18:03,880 How does that help, because then you start getting people not working. 210 00:18:06,559 --> 00:18:11,880 It doesn't work. We don't hear anything about the border anymore until, of 211 00:18:11,920 --> 00:18:18,640 course there's too many people into sanctuary cities. Then they want aid and help 212 00:18:18,640 --> 00:18:25,720 and everything else. It's not like they stopped coming across the border. It's 213 00:18:25,720 --> 00:18:30,200 just the media isn't talking about it, so people think it ain't happening. 214 00:18:33,079 --> 00:18:37,039 All the things that are going wrong will continue to go wrong. They don't 215 00:18:37,079 --> 00:18:47,079 allow the smart people to discuss social security and medicare. They use it as 216 00:18:47,640 --> 00:18:52,519 a fear tactic against the other party. If you bring it up in a 217 00:18:52,599 --> 00:18:55,880 sensible, common sense way, as if they're going to take it away from 218 00:18:55,920 --> 00:19:00,880 people that already have it. Nobody's gonna take that away. But if we 219 00:19:00,000 --> 00:19:04,720 do not get a handle on Social Security. It's gonna go hurt more people. 220 00:19:06,000 --> 00:19:08,200 And those people are going to be your grandchildren, because how are they 221 00:19:08,240 --> 00:19:14,079 going to go ahead and do anything but get taxed more in their Social Security 222 00:19:14,160 --> 00:19:19,680 checks in order to pay We are all now paying more into Medicare, all 223 00:19:19,720 --> 00:19:26,960 the way up social Security as as it's all ways, you're not getting that 224 00:19:27,039 --> 00:19:32,799 much more than they got a ten twenty years ago. But look how much 225 00:19:32,839 --> 00:19:37,400 more money we're putting into the system just so it doesn't collapse under himself. 226 00:19:37,400 --> 00:19:41,480 You're paying yourself. It is the biggest joke. If you are working, 227 00:19:41,880 --> 00:19:48,720 right, if you're working and you're at fully time and age, you get 228 00:19:48,720 --> 00:19:53,039 soci Security, you get taxed on Social Security and your w two way a 229 00:19:53,119 --> 00:19:59,880 paycheck is being taxed for Social Security and Medicare. You're a Medicare, you're 230 00:20:00,039 --> 00:20:03,599 paying for Medicare, and then you're paying at Medicare out of your check. 231 00:20:03,759 --> 00:20:10,440 That's a joke. Why once you reach Medicare after paying for sixty five whatever 232 00:20:10,480 --> 00:20:14,480 it is until the age sixty five, why at that time, just because 233 00:20:14,519 --> 00:20:19,079 you're working and want to go ahead and and work and be employed, whether 234 00:20:19,119 --> 00:20:22,400 you want to or you have to, why are you getting charge of medicare. 235 00:20:27,440 --> 00:20:33,319 Why it's just like people that are elderly, right, they all we've 236 00:20:33,359 --> 00:20:37,039 all paid for stool taxes even though our kids don't even go to school there 237 00:20:37,039 --> 00:20:41,240 anymore. I get it part of the community, but that's you know, 238 00:20:42,039 --> 00:20:47,519 there's places that then don't you get a certain age you're not paying us that 239 00:20:47,640 --> 00:20:52,279 the property taxes or they're reduced. They brought it up a bunch of times 240 00:20:52,279 --> 00:21:00,319 in Arizona. You got a lot of retirees here. We are such a 241 00:21:00,799 --> 00:21:06,279 country that pays for everybody else, and that's fine, but don't tell me 242 00:21:06,359 --> 00:21:11,200 people don't pay their fair share when they're making more money because you're paying. 243 00:21:11,559 --> 00:21:15,920 It's amazing with the care and Social Security. How you have to pay for 244 00:21:15,000 --> 00:21:19,160 Social Security, get tax on Social Security, and get taxed out of your 245 00:21:19,160 --> 00:21:23,960 paycheck for Social Security. So if you think about it, really at the 246 00:21:25,039 --> 00:21:30,440 end of the day, how much you're really making. But nobody ever thinks 247 00:21:30,480 --> 00:21:41,079 about that because they don't realize that, especially to medicare. And then Medicare 248 00:21:41,119 --> 00:21:48,599 isn't totally free for everybody. He's gotta pay here there you get deductibles. 249 00:21:52,119 --> 00:21:57,160 Fix the whole system. Why are our drugs so much more expensive than around 250 00:21:57,160 --> 00:22:03,680 the world. At least Trump was trying to do something about it. It's 251 00:22:03,680 --> 00:22:07,640 not right. I gotta have a different system. We gotta come up with 252 00:22:07,680 --> 00:22:14,480 a different immigration system. Things are antiquated, but nobody gets along, so 253 00:22:14,599 --> 00:22:17,599 nobody wants to go ahead and do it. Do what needs to be done. 254 00:22:18,440 --> 00:22:26,599 We came and vote without feeling like there's something wrong. You fix it. 255 00:22:26,559 --> 00:22:30,279 You want to mail in ballot, you get one. Otherwise, show 256 00:22:30,359 --> 00:22:33,680 up on one or two or three different dates that you're allowed to go vote. 257 00:22:34,759 --> 00:22:42,119 It's that simple. All the things they talk about that make it not 258 00:22:44,079 --> 00:22:51,480 that that might lead to votes, that really on votes or whatever. Eliminate 259 00:22:51,559 --> 00:22:57,680 that eliminated in everybody's mind. I don't know why we make it so difficult 260 00:23:00,079 --> 00:23:03,039 to do, because what happens is this is all going back, and I 261 00:23:03,079 --> 00:23:07,279 don't want to house the cards in our economy. Our economy is doing well. 262 00:23:07,319 --> 00:23:11,759 We do not need to bring it to its knees. We don't need 263 00:23:11,799 --> 00:23:17,960 to keep raising interest rates. We need to do some things on the supply 264 00:23:18,119 --> 00:23:23,359 side to keep inflation down. The reason inflations come down is the supply is 265 00:23:23,400 --> 00:23:30,640 caught up with the demand. It's that simple. When we went through the 266 00:23:30,720 --> 00:23:37,640 whole thing with the the COVID and all right, it's because we couldn't get 267 00:23:37,680 --> 00:23:41,480 stuff here. Nobody was making it, so the supply side went down. 268 00:23:41,640 --> 00:23:45,839 Is the demand increasing and wages went out. Well, now the inflation has 269 00:23:45,880 --> 00:23:51,519 gone down a little bit because supplies are there. We'll figure out a way 270 00:23:51,559 --> 00:23:55,640 we need more supplies, get the supplies out there so the demand is less 271 00:23:55,680 --> 00:24:00,680 and prices will come down. We just got to go ahead and have our 272 00:24:02,720 --> 00:24:10,000 Congress step up and start making some change in the rules to help to benefit, 273 00:24:10,680 --> 00:24:15,119 to do things that are just that are proactive, to bring inflation down, 274 00:24:15,759 --> 00:24:18,839 keep the jobs of going. We need to go ahead and find others 275 00:24:18,920 --> 00:24:23,200 that want to work and stop giving away free money. We'll be back with 276 00:24:23,279 --> 00:24:26,720 the whole house today. Thanks for listening. This is the Money Matter Show. 277 00:24:33,000 --> 00:24:36,799 Welcome back everybody. This is the Money Matter Show. We have everyone 278 00:24:36,880 --> 00:24:40,599 today. This is Dean Greenberg. We got Dave Sherwood, Dylan Greenberg, 279 00:24:40,839 --> 00:24:45,799 and we have Todd Glick. We will be talking to a guest today later 280 00:24:45,880 --> 00:24:49,400 about SOLA and the good part of Solo, and we'll ask a lot of 281 00:24:49,480 --> 00:24:53,880 questions of why it's worth even doing or not doing. So hopefully I'll have 282 00:24:53,880 --> 00:24:57,119 all the answers that come on the second part of a show, So stay 283 00:24:57,160 --> 00:25:00,119 tuned for the second half. And if you don't get it, where can 284 00:25:00,160 --> 00:25:04,160 we go? We can go to podcast Money Matters with Dean Greenberg. Yeah, 285 00:25:04,240 --> 00:25:07,599 you got to look up with Dean Greenberg because there's a bunch of Money 286 00:25:07,599 --> 00:25:11,759 Matters out there and it's on any podcast streaming service. Yep. Like it's 287 00:25:11,799 --> 00:25:17,319 like somebody stole Dean's title there Money Matters, right, I know he's out 288 00:25:17,319 --> 00:25:21,000 it for thirty years? Where have you been? I wasn't alive for the 289 00:25:21,039 --> 00:25:22,759 first three? Is this? It's just like it's just like the greatest time 290 00:25:22,759 --> 00:25:26,680 of the year ever. The temperatures are back into the nineties, we got 291 00:25:26,720 --> 00:25:29,960 the Little League World Series going on, we got high school football. Is 292 00:25:30,000 --> 00:25:33,200 absolutely not the best time. The talk yesterday. No, no, that's 293 00:25:33,319 --> 00:25:38,799 yesterday, Dave, Real League World Series that excites you that No, No, 294 00:25:41,200 --> 00:25:44,880 it's just watch It's just wonderful, simpler time back to us. And 295 00:25:44,920 --> 00:25:48,880 then when FIFA was on, he was giving me crap for watching police. 296 00:25:48,880 --> 00:25:52,839 You mentioned high school football? High school football next next weekend? Right, 297 00:25:53,559 --> 00:25:59,119 college football? It's always the big headline this week Friday Night was is a 298 00:25:59,279 --> 00:26:03,319 is a game. Yeah, yeah, it's coming Friday, right this previous 299 00:26:03,359 --> 00:26:06,440 Friday. Oh, last Friday. We're next Friday, next Friday. You 300 00:26:06,440 --> 00:26:07,640 know the two guys that work here all day and then go to practice at 301 00:26:07,720 --> 00:26:11,359 night and student athletes are going somewhere in life. You know, you're coaching 302 00:26:11,400 --> 00:26:15,559 Tusi High School. Yeah, we're going next week. It was our first 303 00:26:15,559 --> 00:26:18,599 game and that's exciting stuff. I think the big headline is week with that 304 00:26:18,920 --> 00:26:22,240 was the Trump's fourth indictment. I mean, is this getting so stupid and 305 00:26:22,319 --> 00:26:26,920 silly and just I think the left is just embarrassing themselves. If you look 306 00:26:26,920 --> 00:26:30,480 at these indictments, read into them, they're just a joke. They're they're 307 00:26:30,480 --> 00:26:33,799 almost they would be hilarious if it wasn't so sad. You try to listen 308 00:26:33,839 --> 00:26:37,839 to like a non biased station with the attorneys on it, those are the 309 00:26:37,839 --> 00:26:40,960 ones that you know, I kind of listened to the most, and they 310 00:26:41,079 --> 00:26:45,279 all say, and there's nothing here with these indictments. Nothing. It's unbelievable, 311 00:26:45,359 --> 00:26:48,680 and it's like they are stretching to do this to just get him out 312 00:26:48,680 --> 00:26:51,920 of the race. Totally poltical, totally political. They're not going to get 313 00:26:51,960 --> 00:26:55,039 him out of the race every time they indict him to get stronger. Well, 314 00:26:55,319 --> 00:26:59,200 here's the thing. You and I both know how long lawsuits take, 315 00:26:59,680 --> 00:27:03,039 oh and how they drag out. How are they ever gonna when? When's 316 00:27:03,039 --> 00:27:07,440 they when's the election? Yeah? I am about a un two months from 317 00:27:07,480 --> 00:27:11,640 now. Yeah, Okay, they're not allowed to do anything for what three 318 00:27:11,720 --> 00:27:15,039 or four months before the election because they don't want to disturb it. I 319 00:27:15,240 --> 00:27:19,559 e that we know because we didn't know about Biden's son's laptop. Oh, 320 00:27:19,640 --> 00:27:23,039 let's don't let that out and infect the election. So the bottom line is 321 00:27:23,079 --> 00:27:29,359 if they don't go ahead and able to put a trial together and convict him 322 00:27:29,519 --> 00:27:33,000 by next March, it can't happen. Yeah, I don't see it happening. 323 00:27:33,119 --> 00:27:36,400 Well, let the San Francisco Chronicle, which is not exactly a right 324 00:27:36,400 --> 00:27:40,960 wing newspaper right said they'll never convict him of anything. So this is all 325 00:27:41,000 --> 00:27:44,880 just political. There's a good place to live. Yeah, I used to 326 00:27:44,920 --> 00:27:49,160 love. I used to love going there. It's like it's like Beirut. 327 00:27:49,839 --> 00:27:56,079 Okay, they they they're not bombing, but they're destroying everything. These mob 328 00:27:56,160 --> 00:28:00,319 flashings, just going in and stealing whatever they want and living on the streets 329 00:28:00,400 --> 00:28:03,759 crapping all over. The issue is when it's backwards. You got a store 330 00:28:03,759 --> 00:28:07,039 owner trying to protect it was a clerk in a gas stasition is trying to 331 00:28:07,039 --> 00:28:11,839 protect the store from these robbers. And now he's getting in trouble because he 332 00:28:11,960 --> 00:28:14,440 went after room with a baseball back because they brought their store three times in 333 00:28:14,440 --> 00:28:15,799 a week because they don't get in trouble. So then he had enough of 334 00:28:15,839 --> 00:28:19,640 it, started hitting with a baseball bat and now he's under charges. Yeah, 335 00:28:19,720 --> 00:28:23,599 and no one's doing the investigation fight. How much money do you lose 336 00:28:23,640 --> 00:28:26,119 every time they do? Because everyone thinks the insurance is that we all know 337 00:28:26,160 --> 00:28:30,119 we have deductibles. And if you're in a place like that and you're being 338 00:28:30,119 --> 00:28:33,200 they might have taken his insurance away too. You'll get sick and tired of 339 00:28:33,200 --> 00:28:37,680 it. You're coming after my livelihood of my family, and you think you 340 00:28:37,720 --> 00:28:41,039 can keep coming in here somehow. That's all right, though it's completely backwards, 341 00:28:41,039 --> 00:28:45,279 completely backwards, no different than the marine saving people on the subway in 342 00:28:45,279 --> 00:28:48,400 New York. I haven't heard much more about that with that is that's a 343 00:28:48,480 --> 00:28:52,359 pretty that's pretty San Francisco, I think is probably the perfect example of what 344 00:28:52,680 --> 00:28:56,160 where you don't want to go right. Yeah, pretty much. But we're 345 00:28:56,200 --> 00:28:59,079 experiencing that into sound, not the flash mobs and things. But I was 346 00:28:59,119 --> 00:29:02,000 talking to a guy that's hard with the end of the day about my agent, 347 00:29:02,599 --> 00:29:04,799 about his shoplifting and things, remember a few things. There was something 348 00:29:04,880 --> 00:29:07,160 I knew it was under lock and key, and I told that's kind of 349 00:29:07,359 --> 00:29:10,960 interesting having that under lock and key. And he goes out. He said, 350 00:29:11,160 --> 00:29:14,160 when I first started here twenty one years ago, he said, if 351 00:29:14,200 --> 00:29:18,240 we had twenty thirty items stolen in a year, it was a big deal. 352 00:29:18,440 --> 00:29:19,640 He said, Now it's thousands every month. Yeah, And I mean 353 00:29:19,640 --> 00:29:22,880 they've different companies have different policies for years. I remember, like ten years 354 00:29:22,920 --> 00:29:27,039 ago, Albertson's had the policy where you can't run after somebody because Safe Away, 355 00:29:27,079 --> 00:29:30,160 the parent company, had one of their employers get shot when they try 356 00:29:30,200 --> 00:29:36,039 to run after a robber. Yeah, and then you also lock under lockdown 357 00:29:36,039 --> 00:29:37,799 things depending on what's going on. Like three years ago, they locked down 358 00:29:37,799 --> 00:29:41,920 the tide pods because kids were eating them, so they had to lock him 359 00:29:41,920 --> 00:29:42,920 down. I remember that. Yeah, it was weird, but yeah, 360 00:29:42,920 --> 00:29:45,440 they had to lock him down and couldn't open them. Hey, We've all 361 00:29:45,519 --> 00:29:48,000 done things when we were kids, right, Sure. I remember when I 362 00:29:48,039 --> 00:29:52,640 shoplifted when I was eight years old. Okay, took some candy. I 363 00:29:52,680 --> 00:29:59,079 was out of baseball game, right apparance when happy, we had to go 364 00:29:59,119 --> 00:30:00,720 back. We had a little judge. We had to pay for it. 365 00:30:00,720 --> 00:30:04,039 It all starts with that. How how did these kids grow up, these 366 00:30:04,119 --> 00:30:07,440 people grow up saying, Oh, it's okay to steal from people. Yeah, 367 00:30:07,799 --> 00:30:11,160 it pisses me off. Yeah, it's all be honest with It's awful. 368 00:30:11,559 --> 00:30:15,079 Back to the market day. We came into August with five consecutive months 369 00:30:15,079 --> 00:30:18,880 of gains. Dean, and you and I both thought it was We all 370 00:30:18,920 --> 00:30:22,200 thought it was getting a little pricey, a little frothy. Now we've had 371 00:30:22,240 --> 00:30:26,680 a three weeks slide for the SMP five hundred to four weeks slide for the 372 00:30:26,759 --> 00:30:30,480 Nastack. First time this year. The Nastack's been down four weeks in a 373 00:30:30,559 --> 00:30:34,839 row. I see a bounce. Well, last week Nasdak wasn't down, 374 00:30:36,119 --> 00:30:37,559 Yeah, four weeks in a row. According to the NBC, it was 375 00:30:37,599 --> 00:30:41,200 down very slightly. Yeah, yeah, I think it's point two or something. 376 00:30:41,279 --> 00:30:45,960 Yeah, I see I see a bounce coming. Tradeable bounce. I'm 377 00:30:45,960 --> 00:30:48,440 not wanting, not of an investable bounce, because especially with September and October 378 00:30:48,480 --> 00:30:53,559 there and and then, if you haven't loosened up or raised some cash, 379 00:30:55,319 --> 00:30:59,440 use that opportunity to do it. Right. We've been cautious, I said, 380 00:31:00,079 --> 00:31:02,519 cautious. Oh that's the last week. We've been too cautious over the 381 00:31:02,559 --> 00:31:07,920 last ninety days. But we had our core in belt. We've got about 382 00:31:07,960 --> 00:31:11,799 ten percent of our assets in in a money market fund band GUARD money market 383 00:31:11,799 --> 00:31:14,119 fund, which is spanned five that's not the worst thing that ever happened. 384 00:31:14,519 --> 00:31:17,640 It's five and a quarter right down it is. So that's treasury, short 385 00:31:17,680 --> 00:31:21,279 term treasure, term treasuries. We've got probably thirty percent of the firm's assets 386 00:31:21,279 --> 00:31:26,680 and short term treasuries or or a rated corporate bonds. We've got ten percent 387 00:31:26,720 --> 00:31:30,759 of the firm's assets in an inverse fund betting to the downside. So you 388 00:31:30,799 --> 00:31:33,759 know, don't need to use the word betting. We're mitigating risk to the 389 00:31:33,799 --> 00:31:37,400 downside. Okay, that's good point. Ok good point. Yeah, No, 390 00:31:37,519 --> 00:31:38,640 that's true because we're not we're not going to put you on a plan 391 00:31:38,720 --> 00:31:41,000 and bring you to Vegas. And when you bet, you usually live. 392 00:31:41,079 --> 00:31:45,759 Yeah, and the perfect scenario is if the inverse fund loses money, that's 393 00:31:45,799 --> 00:31:48,880 a good thing. That's our insurance policy. So you're right, it's not 394 00:31:48,920 --> 00:31:53,839 a bets insurance. So we have been cautious with that. Said, we've 395 00:31:53,880 --> 00:32:01,160 we've probably participated in sixty percent of the market's rally. We've participated in about 396 00:32:01,519 --> 00:32:07,319 forty percent of this decline, So that's the other side of that coin now 397 00:32:08,039 --> 00:32:13,359 five percent off of the high for the year, which is a start or 398 00:32:13,400 --> 00:32:16,559 ten percent off of the all time high on the SMP five hundred. We 399 00:32:16,640 --> 00:32:21,039 continue, Dean, you've mentioned in your monalog red flags, there's red flags 400 00:32:21,079 --> 00:32:24,839 everywhere. And then yet in the middle of that, you see retail sales 401 00:32:24,920 --> 00:32:30,000 up seven tenths of a percent in July, which was much better than expected. 402 00:32:30,200 --> 00:32:32,799 And then Fitch comes out and on Tuesday and warns that they're gonna they're 403 00:32:32,839 --> 00:32:37,000 probably gonna have to downgrade more of the banks at this time, the major 404 00:32:37,039 --> 00:32:42,759 banks, And that's a red flag that there's something going on that they're looking 405 00:32:42,799 --> 00:32:46,000 at that we don't know about. But people, since they don't really understand 406 00:32:46,039 --> 00:32:50,359 any of that, they just go to work and stop buying. But the 407 00:32:50,440 --> 00:32:54,240 problem is is they also get scared when it turns institutions it's all about their 408 00:32:54,279 --> 00:32:58,319 allocate. They just buy and then they have it. They always have more 409 00:32:58,319 --> 00:33:01,200 money coming in. Sure, it doesn't affect them. It affects individuals, 410 00:33:01,240 --> 00:33:07,640 retail people. That's a heart of subset, subset to invest for because they 411 00:33:07,640 --> 00:33:10,799 don't always unless it's a Form one K plan, they don't always have more 412 00:33:10,839 --> 00:33:15,359 money coming in. In fact, most of it is going out, you 413 00:33:15,440 --> 00:33:19,039 know, to pay for things a monthly, to turn their to turn their 414 00:33:19,559 --> 00:33:23,119 tirement into a pension. Because people don't get pensions anymore. They take money 415 00:33:23,119 --> 00:33:28,359 from their ioa sure and and you know it's difficult. That's why when people 416 00:33:28,440 --> 00:33:32,599 need a know that in five years or three years or ten years or immediately, 417 00:33:34,039 --> 00:33:36,440 they need a guaranteed income for the rest of the life, that's when 418 00:33:36,480 --> 00:33:39,880 we start looking at at annuities, you know, because they will give them 419 00:33:39,920 --> 00:33:45,559 that same income for the rest of the life. A couple of housekeeping things 420 00:33:45,599 --> 00:33:49,440 from last week we talked about shorts selling. Adan, I think you had 421 00:33:49,440 --> 00:33:52,279 step away when we're doing that segment about short selling. We were unclear as 422 00:33:52,319 --> 00:33:57,440 to what the interest rate charges were, if any, and we did a 423 00:33:57,440 --> 00:34:00,920 little research on that, and yes, you definitely do have to pay not 424 00:34:00,079 --> 00:34:05,000 only dividends if you're short the stock, but you have to pay interest if 425 00:34:05,000 --> 00:34:07,480 you're if you're short the stock, and most firm short death. The reason 426 00:34:07,519 --> 00:34:13,800 I've never paid interest is because shorting is so aggressive and so risky that I 427 00:34:13,840 --> 00:34:15,800 often do it on a day debut, I do it. I probably short 428 00:34:15,840 --> 00:34:20,639 well. Sure you don't need to short stocks anymore. You have the indexes 429 00:34:20,679 --> 00:34:23,119 that are inverse. You could, but it would it wouldn't it have been 430 00:34:23,199 --> 00:34:28,000 nice to to to short of stock that's that you think has fallen apart or 431 00:34:28,079 --> 00:34:31,079 has a bad pattern or is acting well. I mean, I think today's 432 00:34:31,079 --> 00:34:35,599 will you you're short against the box of what you do? Uh, you 433 00:34:35,599 --> 00:34:37,840 know, if you have a long position, you don't want to come out, 434 00:34:37,199 --> 00:34:44,000 you go short because the the ability to go ahead and and to to 435 00:34:44,079 --> 00:34:47,079 go to offset going down. But you can buy put options, you can 436 00:34:47,119 --> 00:34:51,559 go ahead and buy inverses on the whole thing. You can sell calls. 437 00:34:51,599 --> 00:34:53,599 There's a lot of other ways to do it other than just go short out 438 00:34:53,639 --> 00:34:57,599 and then and you're talking about speculation by doing that, Oh, absolutely, 439 00:34:57,679 --> 00:35:00,400 no, no, absolutely, And we talked about that the high that's a 440 00:35:00,480 --> 00:35:02,400 very very high risk trate. The other thing we wanted to touch on was 441 00:35:02,440 --> 00:35:07,679 batteries. We talked a little bit about solid state versus the lithium ion batteries, 442 00:35:07,960 --> 00:35:12,719 and our thought was what kind of things would be in the solid state 443 00:35:13,000 --> 00:35:17,320 and Todd this is a surprise of both. It actually has more lithium really 444 00:35:17,440 --> 00:35:22,519 than the lithium ion battery. Wow, it does have a it does have 445 00:35:22,559 --> 00:35:28,880 a shorter charging time due to superior charge discharge performance, and they're much faster 446 00:35:28,960 --> 00:35:31,360 to build. But they're very, very expensive, way more expensive than lyssium 447 00:35:31,360 --> 00:35:36,440 ion batteries. So Toyota's came up with that solid state battery and I'm thinking 448 00:35:36,519 --> 00:35:39,400 myself, well, you want one hundred thousand dollars, Toyota right probably has 449 00:35:39,400 --> 00:35:43,280 to put a Lexus tag on that. If you're gonna make an other thousand 450 00:35:43,280 --> 00:35:45,880 dollars, Toyota, that can't be their priest. Give me, give me 451 00:35:45,920 --> 00:35:50,679 my guess, run engine and I'll be happy. Yeah the guy. We'll 452 00:35:50,719 --> 00:35:52,800 be right back. We have another segment before the top of the HOWA we 453 00:35:52,880 --> 00:35:58,960 appreciate you listening to the money Matty shows say, it's all a name. 454 00:36:02,840 --> 00:36:06,679 Welcome back, everybody. This is Dan Greenberg. This is the Money Matter 455 00:36:06,760 --> 00:36:08,880 Show. We got Dave, Dylan and Todd and we have a guest coming 456 00:36:08,960 --> 00:36:13,760 up at the top of the hour. We're gonna be talking about solo solo 457 00:36:13,920 --> 00:36:19,280 energy, solar power, the good, the bad, why you can help 458 00:36:19,280 --> 00:36:22,119 you save money, and how it doesn't save you money. How about Hawaii 459 00:36:22,199 --> 00:36:28,400 Electric? How did we miss that one? You talk about shorting? Shorting 460 00:36:28,480 --> 00:36:31,719 industries could do that shorty in Hawaiian? You know who? But I mean, 461 00:36:31,760 --> 00:36:35,159 who would even think of that? I don't know why. I didn't 462 00:36:35,159 --> 00:36:37,920 cross my mind what you're saying they did. They knew that. They started 463 00:36:37,960 --> 00:36:40,239 to fire it after they showed it to stock. When you look at when 464 00:36:40,280 --> 00:36:44,360 you look at something like that, where there's an act of God, that 465 00:36:44,559 --> 00:36:46,719 where there's great fires that were the first thing that should come to your mind 466 00:36:46,800 --> 00:36:52,960 is Northern California gotta be the utility. Blame the utility, right, Hawaii 467 00:36:52,960 --> 00:36:55,760 Electric? Two or three days, it's out there just doing nothing. Over 468 00:36:55,800 --> 00:37:00,480 the weekend, Wall Street Journal and The New York Times suggested might have been 469 00:37:00,519 --> 00:37:05,360 caused by the power line, And we saw what happened with Pacific Gas and 470 00:37:05,360 --> 00:37:09,079 Electric. It went from seventy bucks to four dollars after the fires in California. 471 00:37:09,239 --> 00:37:14,639 Five years later, Pacific Gas and Electric still has not reinstated their dividend. 472 00:37:15,360 --> 00:37:16,519 And you can argue it was an act of guy, but that didn't 473 00:37:16,519 --> 00:37:21,239 save electric Pacific Electric, Power and Gas. Right, and now Hawaii Electrics 474 00:37:21,280 --> 00:37:24,239 down seventy Wire Electric was forty bucks a share a deal in a week ago 475 00:37:24,440 --> 00:37:29,480 and on Friday, Thursday it hit ten bucks. Yeah, from forty to 476 00:37:29,599 --> 00:37:31,159 ten. Did they have a good dividend before? Have they proven that it's 477 00:37:31,199 --> 00:37:35,519 Hawaiian Electric? No? Right, no, But but you know it doesn't 478 00:37:35,519 --> 00:37:38,960 help. It doesn't matter. Right, They're pretty sure that that power lines 479 00:37:39,079 --> 00:37:43,440 caused it that were knocked down, but they were knocked down by hurricane force 480 00:37:43,519 --> 00:37:47,119 wins. Does that matter? Apparently not. Apparently, it doesn't matter. 481 00:37:47,239 --> 00:37:52,119 You gotta find it out with the Walst Journals said that they're in the firms 482 00:37:52,199 --> 00:37:57,199 in talks with companies who specialize in restructuring. You look at that thing and 483 00:37:57,239 --> 00:38:00,400 you say, it's really an enticing price. It went from forty to ten, 484 00:38:00,719 --> 00:38:06,519 right, It did bounce fifteen percent on Friday. But remember Pacific Gational 485 00:38:06,519 --> 00:38:10,000 Electric didn't pot them until a year after the fires because of the litigation and 486 00:38:10,119 --> 00:38:14,360 just kept piling on, piling on, piling on. So you have to 487 00:38:14,400 --> 00:38:17,079 ask yourself with Hawaii Electric, Okay, I went from forty to ten. 488 00:38:17,119 --> 00:38:22,400 Now it's bounced back to thirteen. What's the catalyst? What's the catalyst that's 489 00:38:22,440 --> 00:38:25,679 gonna make that stock returned to normal anytime if they prove that it had nothing 490 00:38:25,719 --> 00:38:30,920 to do with them. But how do you do so remember we talked about 491 00:38:30,960 --> 00:38:34,320 all the time. If the stock craters like that for whatever reason, it's 492 00:38:34,320 --> 00:38:37,280 not time to get into it right away because it could still go down under 493 00:38:37,320 --> 00:38:39,000 ten. It could still have another drop. I mean, if there's anything 494 00:38:39,000 --> 00:38:42,880 that comes out that proves that Hawaiian Electric had anything to do with it, 495 00:38:42,880 --> 00:38:45,960 it's gonna go drop more. And I think you grab if you can grab 496 00:38:45,960 --> 00:38:46,920 a dollar or two. If you're a trader, you want to grab a 497 00:38:46,960 --> 00:38:51,400 dollar or two here. But they're gonna have to prove negligence, yep. 498 00:38:52,039 --> 00:38:55,719 And that means that they weren't taking care like the one up in northern California. 499 00:38:57,039 --> 00:39:00,159 Right there was negligence. They weren't taking out the brush. They went 500 00:39:00,199 --> 00:39:02,800 doing those things, but that was multiply because they didn't let them. You 501 00:39:02,840 --> 00:39:06,239 know what, I'm saying, oh, yeah, but you know why that 502 00:39:06,400 --> 00:39:09,719 if they can't prove negligence, I think they'll get away because from the hurricane 503 00:39:10,239 --> 00:39:15,280 that came by, isn't it wasn't that what happened? Yeah, yeah, 504 00:39:15,320 --> 00:39:16,920 I don't know. I was talking to somebody that was on Oahu Island as 505 00:39:16,960 --> 00:39:21,239 she's saying that, however, whatever was set up, the way it was 506 00:39:21,280 --> 00:39:22,800 set up in Maui was not right, and that's why there's something like this 507 00:39:22,840 --> 00:39:25,679 happened. So I think they're looking at ways like as to why it happened. 508 00:39:25,719 --> 00:39:30,199 But I didn't understand why it was the silencing go off. Yeah, 509 00:39:30,239 --> 00:39:32,440 they didn't want here's what the government said. They didn't want to scare people. 510 00:39:34,360 --> 00:39:37,920 Really, he don't want to scare people. So you just think that 511 00:39:37,000 --> 00:39:39,880 was an emergencies probably just scare people and let them know that's going on. 512 00:39:40,000 --> 00:39:44,039 What's the weirdest part is ad you listening to some of these and Toddy, 513 00:39:44,079 --> 00:39:46,159 you and I were talking about this about the people had to run into the 514 00:39:46,199 --> 00:39:50,239 ocean and they couldn't even they didn't how to swim. Then you live in 515 00:39:50,280 --> 00:39:53,159 Hawaii and you don't how to swim. That's kind of interesting. That's scary 516 00:39:53,199 --> 00:39:57,559 times. I would learn how to swim if the fire was chasing me. 517 00:39:57,880 --> 00:40:00,199 But then you heard it wasn't there. It wasn't about Chanel though I heard 518 00:40:00,239 --> 00:40:05,039 that that that might have been the thing that people would talk about lava coming 519 00:40:05,039 --> 00:40:08,239 down. No, there was no lava coming No, there's fires volcano that 520 00:40:08,360 --> 00:40:12,920 was like when not dormant anymore. They started rough thing, but it wasn't 521 00:40:12,960 --> 00:40:17,639 bad. It was just like island that's on the big island that's they don't 522 00:40:17,639 --> 00:40:22,760 have active volcanoes on Maui Uh Tesla. Tesla had a rough week, down 523 00:40:22,800 --> 00:40:30,280 eleven percent. They announced the third price cut Dean this year. In China, 524 00:40:30,840 --> 00:40:35,920 they're they're battling with x Pang and Neil. X paying is their biggest 525 00:40:35,920 --> 00:40:38,400 competition. Neo is a more high end, more of a lucid type of 526 00:40:38,440 --> 00:40:44,800 thing. But the x Pang it has a suv similar to Tesla's that is 527 00:40:44,880 --> 00:40:46,960 cheaper and has longer range. So let me ask you this question. Would 528 00:40:46,960 --> 00:40:51,880 you rather have your cause sitting on the lot because you don't want to make 529 00:40:51,960 --> 00:40:55,440 less, or you rather be getting them off your lot out of production into 530 00:40:55,480 --> 00:41:00,960 people's hands because you charge less, into people's hands because the inventory that they're 531 00:41:00,960 --> 00:41:05,440 producing is outpacing the amount of deliveries, so you're inventories is going to continue 532 00:41:05,440 --> 00:41:09,719 to increase supply and demand. Just what we said before, Tesla is increasing 533 00:41:09,760 --> 00:41:14,960 supply. Demand's going down, so prices come down. If our government would 534 00:41:15,000 --> 00:41:17,360 just understand and run the damn thing is a damn business, they would get 535 00:41:17,360 --> 00:41:22,400 it. Get more supply, that get it more than the demand. Prices 536 00:41:22,400 --> 00:41:25,360 come down than we even it out economy, and China continues to struggle. 537 00:41:25,440 --> 00:41:31,039 The Country Garden Did you hear about this? Country Garden is China's largest private 538 00:41:31,239 --> 00:41:36,920 real estate developer. They suspended trading on all of their bonds last Monday. 539 00:41:37,159 --> 00:41:44,159 Wow, and they will not report unemployment for the for young young adults. 540 00:41:44,320 --> 00:41:49,280 They're gonna stop doing that. They stop, They stopped. They stopped it 541 00:41:49,320 --> 00:41:52,039 completely, because you know how bad it really is. Then if they're stopping 542 00:41:52,039 --> 00:41:54,239 it, well to that point. Financial Times came out with an article last 543 00:41:54,280 --> 00:42:00,239 week and quoted a brokerage analyst that says multiple brokerge analysts and researchers are at 544 00:42:00,320 --> 00:42:04,519 leading universities as well as state run think tanks said that they have been instructed 545 00:42:04,519 --> 00:42:08,559 by regulators, their employers, and even domestic media outlets to avoid speaking negatively 546 00:42:08,599 --> 00:42:14,039 about topics ranging from fears of capital flight to softening prices, so they're not 547 00:42:14,079 --> 00:42:19,360 allowed to say anything bad right now anyone in China. China lowered interest rate 548 00:42:19,440 --> 00:42:23,719 on their one year loans for the second time since June, and this last 549 00:42:24,119 --> 00:42:30,840 last week was the largest declined since twenty twenty. The PBOC, the People 550 00:42:30,880 --> 00:42:34,480 Bank of China, meet on Monday morning for an interest rate policy decision. 551 00:42:34,599 --> 00:42:37,920 Most likely will be another decreased cut for them to try to stimulate the economy. 552 00:42:38,159 --> 00:42:43,559 Right and here, the ten year treasury hits of sixteen year high YEP 553 00:42:43,679 --> 00:42:47,280 and the inversion continues to narrow. It does narrow still point seven, which 554 00:42:47,320 --> 00:42:52,880 is down from one percent todd which is what it was. It'll be interesting 555 00:42:52,880 --> 00:42:58,480 to see, is is it possible that that will correct itself to a normal 556 00:42:58,639 --> 00:43:04,000 yield curve the state over definitely here without without any kind of a black swan 557 00:43:04,039 --> 00:43:07,599 event. It's certainly possible. I mean, at this point, if you've 558 00:43:07,599 --> 00:43:10,880 been invested in TLT over the last nine years, you have a negative return, 559 00:43:12,519 --> 00:43:15,719 so it makes sense, it makes sense. It's a tough tough time 560 00:43:15,800 --> 00:43:20,559 for that, but eventually these rates will have to drop right, no question. 561 00:43:20,719 --> 00:43:22,440 It's just like we used to say, Okay, rates are going up, 562 00:43:22,760 --> 00:43:25,360 rates will go up, the rates will go up. Don't go long 563 00:43:25,480 --> 00:43:29,360 term, don't go long term, don't go midterm, go short term. 564 00:43:29,880 --> 00:43:34,000 We were early right, and then rates turned I'm telling you right now, 565 00:43:34,119 --> 00:43:37,639 over the next few years, rates will come back down again and TLT will 566 00:43:37,719 --> 00:43:43,639 rally again. Oh yeah. The long term treasuries were down over thirty percent 567 00:43:43,719 --> 00:43:46,559 last year and we didn't participate in any of that because we were in short 568 00:43:46,639 --> 00:43:51,880 term. Yeah. TLT is a twenty year of treasury bondy tfah over three 569 00:43:51,920 --> 00:43:54,360 and a half percent or three point four yeah, depending where you get it. 570 00:43:54,519 --> 00:43:58,280 Before we leave China, though, on Friday, we saw reports out 571 00:43:58,280 --> 00:44:02,119 of Evergrand, which is China's large just property developer, and they continue to 572 00:44:02,239 --> 00:44:07,199 experience issues. They filed for protection in the US. I'm not sure exactly 573 00:44:07,239 --> 00:44:12,239 what protection they were looking for, whether it was bankruptcy or what other protection 574 00:44:12,280 --> 00:44:15,599 they would be filing for, but they have not been paying their bills, 575 00:44:15,880 --> 00:44:19,599 essentially their debts, their liabilities, their suppliers. Then they have not been 576 00:44:19,599 --> 00:44:22,880 delivering the properties they said that that they were going to deliver. In fact, 577 00:44:22,880 --> 00:44:27,119 there's many people in China that are paying mortgages for flats that have still 578 00:44:27,519 --> 00:44:31,400 undeveloped, and so you know, you can imagine that China is not experiencing 579 00:44:31,400 --> 00:44:36,199 a good economic system if people are paying mortgages for a place they're not even 580 00:44:36,199 --> 00:44:38,960 living at a lot. And oil down two bucks last week to eighty one 581 00:44:39,119 --> 00:44:45,079 thirty, goal down twenty seven dollars to eighteen eighty six. Gold have been 582 00:44:45,079 --> 00:44:49,199 down for four consecutive weeks and it's now ten point two percent off of the 583 00:44:49,280 --> 00:44:52,519 high. And as you say, it's correlated inversely to the dollar, and 584 00:44:52,559 --> 00:44:55,440 the dollars gain strength over the last four weeks. Yeah. Well, so 585 00:44:55,920 --> 00:45:00,920 all this mess sets out there, confusion, airing, fear, markets going 586 00:45:00,920 --> 00:45:06,559 down. Now, how do you prevent it? Prevent it through risk mitigation. 587 00:45:06,639 --> 00:45:07,920 And the only way you can really do that is to find your risk 588 00:45:08,039 --> 00:45:14,840 tolerance and put a plan together. Right, We planned for this, okay, 589 00:45:14,960 --> 00:45:17,719 We planned for the market getting all the valued and eventually come down. 590 00:45:17,760 --> 00:45:21,719 We were early, We're always early. It seems like we playing for the 591 00:45:21,760 --> 00:45:22,840 long term too. We're not sitting there trying to time the market. If 592 00:45:22,840 --> 00:45:27,559 we see a trend going on, we're gonna act on it, and sometimes 593 00:45:27,559 --> 00:45:30,000 it is early, like we were early with the short trading changing from long 594 00:45:30,119 --> 00:45:35,119 term bondy tf to short term bond ttfs two short term bonds. We were 595 00:45:35,159 --> 00:45:37,360 early, but now it's turning out that we were right with it. It's 596 00:45:37,360 --> 00:45:39,559 just happened to be a little early. But we're looking for the long term, 597 00:45:39,599 --> 00:45:44,559 not We never try to make a whole decision immediately. We do it 598 00:45:44,599 --> 00:45:47,199 all the time. So as the market was going out, we were hedging, 599 00:45:47,239 --> 00:45:51,199 we were getting out, mitigating risk, and that I was coming down. 600 00:45:51,679 --> 00:45:55,000 We're looking for opportunities and not only things yet, looking for opportunities as 601 00:45:55,119 --> 00:45:58,960 if it continues to come down, and this is the correction that people are 602 00:45:59,199 --> 00:46:02,239 and it would go ahead. The pendulum always swings of what we're gonna buy, 603 00:46:02,840 --> 00:46:06,519 how we're gonna buy it, how we're gonna allocate it, where the 604 00:46:06,559 --> 00:46:09,800 money's gonna come from. We plan ahead. You all need to plan for 605 00:46:09,920 --> 00:46:15,039 your future for what you have. We you know, with dealing the whole 606 00:46:15,039 --> 00:46:20,039 thing, you gotta put a financial plan in place before you can even imagine 607 00:46:20,440 --> 00:46:22,559 all this other stuff. The best part of that, what we do that 608 00:46:22,599 --> 00:46:27,760 most people don't do is we actually then manage it ourselves. We take the 609 00:46:27,800 --> 00:46:32,239 responsibility, the accountability as a fiduciary to allocate the portfolio according to your risk 610 00:46:32,239 --> 00:46:37,519 tolerance. And that why that's why we know so much about this, because 611 00:46:37,519 --> 00:46:40,360 we're not just handing it off to somebody else and read it reading Time magazine. 612 00:46:42,079 --> 00:46:45,679 We're actually there every day feeling the pain when it goes down and and 613 00:46:45,679 --> 00:46:49,079 and and being happy when it goes up. Yeah, exactly. Or we 614 00:46:49,159 --> 00:46:52,480 build your portfolio based on your risk tolerance because that's how much you can stomach 615 00:46:52,519 --> 00:46:54,480 with a market volatility like right now, we just saw it down week with 616 00:46:54,519 --> 00:46:58,320 this S and P down two percent? Can you stomach that? If you 617 00:46:58,360 --> 00:47:00,480 can? You obviously we're more aggressive because your stocks would probably drop it. 618 00:47:00,480 --> 00:47:04,199 If you're somebody who's a little more risk adverse, you're not going to be 619 00:47:04,440 --> 00:47:07,760 in an aggressive portfolio that we build if you can't handle it. And remember, 620 00:47:08,440 --> 00:47:12,119 you need a financial plan, you need to talk to us. It's 621 00:47:12,159 --> 00:47:16,000 complimentary, free. Whatever you talk about. Most people tell you it's free 622 00:47:16,199 --> 00:47:19,840 and they ask what. The only way you get it is even go ahead 623 00:47:19,880 --> 00:47:22,239 and do business with them. I will never do that. You come in, 624 00:47:22,400 --> 00:47:24,800 it's complimentary, we do it. We'll send it to you whether you 625 00:47:24,880 --> 00:47:30,119 do business with us or not. The Good Lord bless everybody. You love 626 00:47:30,119 --> 00:47:34,119 doing business with us, and we're able to stay in business. So obviously 627 00:47:34,199 --> 00:47:37,760 we're doing something right by making sure that you're taking care of and we leave 628 00:47:37,800 --> 00:47:43,280 in your stress and showing you transparently how this is gonna work. We'll be 629 00:47:43,400 --> 00:48:00,039 right back with the second hour of the Money many Show. Welcome back. 630 00:48:00,079 --> 00:48:02,679 You're listening to the second hour of the Money Matters Show. We got a 631 00:48:02,679 --> 00:48:06,159 special guest in with this segment. But before we get back to that, 632 00:48:06,360 --> 00:48:07,960 for those of you just tuning in, we had a down week in the 633 00:48:07,960 --> 00:48:10,880 markets last week. The Dow was down two point two percent, the SMP 634 00:48:12,000 --> 00:48:14,719 five hundred was down two point one percent, and the NASDAC was down two 635 00:48:14,719 --> 00:48:17,440 point six percent. Russell two thousand, which is the small caps, was 636 00:48:17,440 --> 00:48:21,519 down the most at three point three percent, and then the RSP, which 637 00:48:21,599 --> 00:48:24,639 is the equal weighted SMP five hundred, and we've been wanting to focus more 638 00:48:24,679 --> 00:48:30,119 on that this year because of that Magnificent seven kind of debacle thing that's been 639 00:48:30,199 --> 00:48:34,400 just carrying every the whole SMP five hundred that was down two point six percent, 640 00:48:34,400 --> 00:48:37,719 so as a whole of the markets for down just overall about two hundred 641 00:48:37,719 --> 00:48:39,480 percent, so it wasn't a great week. We are seeing kind of a 642 00:48:39,480 --> 00:48:44,639 down August, which isn't usual. Usually that happens in September, so we're 643 00:48:44,679 --> 00:48:47,719 kind of seeing but this is something we've kind of been expecting after the first 644 00:48:47,760 --> 00:48:51,880 six months. We'll talk more about the markets as we go. Right now, 645 00:48:51,920 --> 00:48:55,880 we got Zach Nevlef from solar pros Arizona. Tell us a little bit 646 00:48:55,880 --> 00:48:59,559 about yourself. Dec Welcome on. What's up guys. Yeah, I'm just 647 00:48:59,599 --> 00:49:02,280 Solaring energy expert here to tell you. You know, let's make the ultimate 648 00:49:02,280 --> 00:49:06,599 power move. Switching the solar is really simple and easy. All you need 649 00:49:06,719 --> 00:49:08,960 is your electricity bill to see how much you can actually save and if it's 650 00:49:09,000 --> 00:49:13,920 a good investment or not for your particular scenario. We've got to see if 651 00:49:13,920 --> 00:49:16,400 you qualify for it and if your home is a good fit or not. 652 00:49:16,920 --> 00:49:22,320 Okay, So Sola, tell us about Sola. If people don't have sola, 653 00:49:22,639 --> 00:49:25,039 you know, you see round disc, you see square disk, you 654 00:49:25,079 --> 00:49:30,760 see sola. You see solo farms all over the place. Okay, I 655 00:49:30,800 --> 00:49:34,960 don't understand the differences of what you should do, how you should and there's 656 00:49:35,000 --> 00:49:38,440 so many solo companies, how do you separate the companies? So basically one, 657 00:49:38,559 --> 00:49:42,039 you know, with the New Inflation Reduction Act, I like to call 658 00:49:42,079 --> 00:49:45,599 it the New Green Deal. With the over five billion dollars of the government 659 00:49:45,639 --> 00:49:49,519 put into this, it really mitigates where you want to see your solo right, 660 00:49:49,599 --> 00:49:53,119 So we have different avenues for each different person. Right, So if 661 00:49:53,119 --> 00:49:58,559 that's your business, a nonprofit or your homeowner. Sorry, if you rent, 662 00:49:58,760 --> 00:50:01,719 unfortunately you're not going to be able to take to be able to use 663 00:50:01,760 --> 00:50:06,360 any of it. But if you don't, you're able to get all the 664 00:50:06,400 --> 00:50:10,800 benefits from you know, basically hedging against inflation and making sure that you're locked 665 00:50:10,840 --> 00:50:15,719 into what you need to pay for free energy. Yep, So I mean 666 00:50:15,760 --> 00:50:20,159 and then you said what you look at is just your electric bill and from 667 00:50:20,199 --> 00:50:22,480 there you can determine how much you need. And that's how you that's really 668 00:50:22,519 --> 00:50:24,960 how you get going on the whole process, right to see, you send 669 00:50:25,000 --> 00:50:29,880 your electric bill in, you see how much solar you need, and it's 670 00:50:29,920 --> 00:50:34,119 all specified for the person and their use per house. Yeah, basically, 671 00:50:34,239 --> 00:50:37,320 yes, So what we'd like to do is tailor system for your specific needs. 672 00:50:37,360 --> 00:50:40,960 If you're a big business or if you're just you know the residential you 673 00:50:42,000 --> 00:50:45,360 know homeowner. Right, So what we tend to look at is one, 674 00:50:45,559 --> 00:50:50,079 what utility do you have? If you have t EP APS, solar is 675 00:50:50,119 --> 00:50:52,360 a no brainer for you, and you need to make sure you get on 676 00:50:52,400 --> 00:50:57,559 board as quickly as you can. Why is that Well, with TP and 677 00:50:57,760 --> 00:51:02,000 APS you can actually elminate your entire bill, opposed to if you have like 678 00:51:02,320 --> 00:51:06,840 sulfur springs or trico, you're not going to be able to do that. 679 00:51:06,960 --> 00:51:09,320 Now you're gonna have to pair up your system with a battery, But TEP 680 00:51:09,519 --> 00:51:14,440 and APS you're gonna let the grid be your battery and just basically backfeed, 681 00:51:14,480 --> 00:51:17,320 get the access generation and make sure you really don't ever actually have to pay 682 00:51:17,800 --> 00:51:22,159 your electricity bill again because now you're just doing a utility swap and you're just 683 00:51:22,159 --> 00:51:28,119 paying for the solar. What's the average cost of a residential system is or 684 00:51:28,199 --> 00:51:30,519 such as things that as average? There is an average. I mean, 685 00:51:30,519 --> 00:51:34,480 I could tell you the average I sell at, but it really depends on 686 00:51:34,519 --> 00:51:38,280 the average person. Right, So, and there's different ways to get solar. 687 00:51:38,480 --> 00:51:42,159 That's the biggest key in all of this, right, you need to 688 00:51:42,199 --> 00:51:45,760 sit down with a trusted individual who can help you with your specific scenarios. 689 00:51:45,840 --> 00:51:49,119 Right with that, how do you know who you can trust the person? 690 00:51:49,920 --> 00:51:52,760 Because most people don't know anything about solar and you hear all these different things. 691 00:51:53,000 --> 00:51:55,480 They sell you too much power, they sell you too much of this 692 00:51:57,000 --> 00:51:59,320 I don't even know they need it. On the roof they will and your 693 00:51:59,360 --> 00:52:00,880 roof. I mean, there's a lot of things that come out that are 694 00:52:00,960 --> 00:52:06,400 negatives. The positive issorly is your bill. So here's the biggest problem I 695 00:52:06,480 --> 00:52:09,519 see in our industries, just specifically here in Tucson and Phoenix. You have 696 00:52:09,719 --> 00:52:15,599 all these guys and gals coming from Las Vegas, Utah, New York, 697 00:52:15,639 --> 00:52:20,800 New Jersey, all over the country to come sell here in sunny Arizona. 698 00:52:20,880 --> 00:52:24,400 Yet they know nothing about our utility. They don't know how to set up 699 00:52:24,440 --> 00:52:30,320 these systems for the correct offset, and now they under deliver and they overcharge 700 00:52:30,360 --> 00:52:34,519 on some of our homeowners. And that's the biggest thing, is how trust 701 00:52:34,639 --> 00:52:37,480 is lost. You know, all these people coming knocking your doors, chances 702 00:52:37,519 --> 00:52:40,599 are they're not even from here, or they'll say yeah, I'm local, 703 00:52:40,639 --> 00:52:44,679 I'm local, and they're really not asking where they're from. Then check to 704 00:52:44,719 --> 00:52:50,239 see that you're vetting these companies because chances are they don't even they subcontract out 705 00:52:50,239 --> 00:52:54,880 this work. They're contracting it out with national installer like tight In or Freedom 706 00:52:54,920 --> 00:52:59,679 Forever. All they're doing is basically wholesale real estate, but they don't know 707 00:52:59,719 --> 00:53:01,199 how to sell it back to you, and now they're inflating the prices on 708 00:53:01,239 --> 00:53:06,840 you. What's the what's the tax credit now on solar? So the tax 709 00:53:06,880 --> 00:53:09,719 credit if you get a loan or cash, you get the tax credit. 710 00:53:09,760 --> 00:53:14,119 If you lease a system, you do not. So basically how the tax 711 00:53:14,159 --> 00:53:17,760 credit works with the Inflation Reduction Act that it got raised back to thirty percent, 712 00:53:17,840 --> 00:53:21,000 So the Fed is going to give you a thirty percent tax credit. 713 00:53:21,239 --> 00:53:23,760 Arizona is going to give you an additional thousand dollars if you have not tapped 714 00:53:23,800 --> 00:53:30,519 in to that energy efficiency on your home already. And then also in the 715 00:53:30,599 --> 00:53:34,039 Inflation Reduction Act, if you get American made panels, you can get an 716 00:53:34,039 --> 00:53:37,679 additional ten percent. Wow, So how do you is that something that you 717 00:53:37,719 --> 00:53:43,039 guys do as a company you all use American made panels or that's at something 718 00:53:43,079 --> 00:53:46,840 that someone has to request. Usually it's up to the consumer. I have 719 00:53:46,880 --> 00:53:51,719 the American made panels. They're great, don't get me wrong. Uh no, 720 00:53:51,960 --> 00:53:54,199 there, They're all about the same. It's really the technology that is 721 00:53:54,239 --> 00:53:59,360 the biggest difference. And when I say technology, it's either the micro inverter 722 00:53:59,760 --> 00:54:02,280 with end phase, which I like, or solar Edge, but solar Edge 723 00:54:02,360 --> 00:54:07,760 uses power optimizers. They're both great products, but I like the scalability of 724 00:54:07,920 --> 00:54:09,559 end phase because you don't have to get so much later on if you want 725 00:54:09,559 --> 00:54:15,119 to answer your system or you put in a battery later. How do you 726 00:54:15,199 --> 00:54:19,639 know what system you need how much? And you know because I heard this, 727 00:54:19,840 --> 00:54:22,199 well you need this many panels or this many panels. What is it 728 00:54:22,199 --> 00:54:25,519 all? What is it all relative to? So it's all relative to your 729 00:54:25,559 --> 00:54:30,119 bill and the kilowatt hours that you use, like and you consume. So 730 00:54:30,199 --> 00:54:31,559 when you look at your bill, there's a graph on your bill, and 731 00:54:31,599 --> 00:54:36,039 that graph is going to show you your average daily build usage, but more 732 00:54:36,079 --> 00:54:40,440 importantly, your total build kilowatt usage for the entire month. Now, when 733 00:54:40,480 --> 00:54:44,199 I see that bill, they give it to you, and that graph shows 734 00:54:44,280 --> 00:54:46,360 a two year history. I'm going to take the average of each month. 735 00:54:46,400 --> 00:54:51,239 I'm going to plug it in and see exactly how much you use annually. 736 00:54:51,679 --> 00:54:54,840 When I do that, I'm then going to factor in the panels and how 737 00:54:54,840 --> 00:54:58,480 they look on your roof. If you have a flat roof, what I'm 738 00:54:58,519 --> 00:55:01,039 going to do is I'm going to tilt its twenty percent do south to make 739 00:55:01,039 --> 00:55:06,639 sure that I get the optimal production for your home. Never am I going 740 00:55:06,679 --> 00:55:08,239 to put a panel on the north side of your home, because then production 741 00:55:08,320 --> 00:55:12,840 is gonna drop. So your design also plays a factor and the key into 742 00:55:12,920 --> 00:55:15,840 this. And basically, if you're at east west facing home, you gotta 743 00:55:15,880 --> 00:55:20,760 place panels on both. So if you have a true south facing home less 744 00:55:20,800 --> 00:55:22,679 panels, if you have east and west, you might need a few more 745 00:55:22,719 --> 00:55:28,199 panels to get that optimal one hundred and twenty five percent offset, which will 746 00:55:28,480 --> 00:55:31,559 then in turn make it a lot better for you, so you won't really 747 00:55:31,599 --> 00:55:38,360 have a bill. So the the average house on everye house of what eighteen 748 00:55:38,440 --> 00:55:45,960 hundred square feed maybe everye se So I'm gonna spend twenty grand grand What am 749 00:55:45,960 --> 00:55:47,840 I going to spend? It really depends on your usage, right. I 750 00:55:49,559 --> 00:55:55,159 typically see homeowners it's about forty thousand dollars, but there's different ways to get 751 00:55:55,199 --> 00:55:59,199 there. Right, So if you lease the system, it's going to be 752 00:55:59,280 --> 00:56:02,159 far less, but then you don't get the tax credit, and then you're 753 00:56:02,199 --> 00:56:06,639 gonna be fixed over that whatever term that you want. But also, when 754 00:56:06,679 --> 00:56:08,519 you lease the system, it's not going to hit your DTI and it's not 755 00:56:08,519 --> 00:56:13,760 going to show up on your credit report. So that's better for some homeowners 756 00:56:13,840 --> 00:56:16,400 that are challenged in those areas. So let's walk through something. Okay, 757 00:56:16,480 --> 00:56:22,119 Dame's a perfect consumer. He thinks that at his age and where are you 758 00:56:22,159 --> 00:56:27,559 at, what he's doing, he would never benefit like buying solo right now 759 00:56:27,920 --> 00:56:30,800 and then seeing it down the road. So how do you how do you 760 00:56:30,880 --> 00:56:32,119 walk through that with somebody? All right, well, what are we talking 761 00:56:32,119 --> 00:56:37,280 about? We're on here and you know money matters. Look dat, No, 762 00:56:37,400 --> 00:56:40,159 I get it. And you're never too old to start saving right. 763 00:56:40,239 --> 00:56:45,079 So what I tell my people? You're never too old to start saving money 764 00:56:45,400 --> 00:56:49,239 right, and which means you didn't get your tax break. You're always going 765 00:56:49,320 --> 00:56:52,719 to be able to see a return on your investment in solar. It's just 766 00:56:52,760 --> 00:56:54,760 when are you going to see it? So here, Zack, you're if 767 00:56:54,760 --> 00:56:58,480 it's gonna cost me forty grand right, yes, sir, I get a 768 00:56:58,559 --> 00:57:01,360 thirty percent of saving Sonoma, twenty eight grand. Right, I might get 769 00:57:01,400 --> 00:57:07,119 a thousand bucks off, so I'm a twenty seven grand anything else, So 770 00:57:07,360 --> 00:57:10,280 taking consideration the extra ten percent you'll get for the American may panels. Okay, 771 00:57:10,280 --> 00:57:13,679 So American may panels. So I get another four graphs and I'm a 772 00:57:13,719 --> 00:57:16,679 twenty three grander. Let's say let's say twenty four twenty four grand. Let's 773 00:57:16,679 --> 00:57:21,519 say my average utility bills two hundred dollars a month, right, yep, 774 00:57:21,960 --> 00:57:23,960 Okay, so I'm gonna be looking at twenty years to break even. No, 775 00:57:24,480 --> 00:57:29,079 so you never gonna happen. No, you gotta remember you're also heading 776 00:57:29,119 --> 00:57:31,639 against inflation. So when you do get sold, I'm heading against inflation. 777 00:57:31,800 --> 00:57:37,760 Okay, So perfect scenario. In September, tpr TP customer correct, right, 778 00:57:38,119 --> 00:57:42,159 right, TP is going to raise the rate of electricity by twelve percent. 779 00:57:42,239 --> 00:57:45,400 That is going to happen. That's already passed the Arizona Corporation Commission. 780 00:57:45,960 --> 00:57:51,280 On average with the Department of Energy is a four percent increase. TP has 781 00:57:51,320 --> 00:57:54,159 more than doubled that over the last three four years. So at that same 782 00:57:54,280 --> 00:58:00,840 rate of inflation, you're gonna be able to find the return on your investment 783 00:58:01,039 --> 00:58:06,440 within five years. I don't see how I honestly don't. If you're if 784 00:58:06,440 --> 00:58:09,280 two hundred dollars a month is your utility bill and you're taking that away from 785 00:58:09,280 --> 00:58:12,800 me, right, so I'm saving twenty four hundred dollars a year, I'm 786 00:58:12,840 --> 00:58:15,159 out of pocket twenty four thousand dollars. Yeah, but you're also going to 787 00:58:15,199 --> 00:58:20,199 be adding into equity every month. So instead of just throwing your money away 788 00:58:20,199 --> 00:58:27,000 to tep at one hundred percent, one hundred percent in play something. What 789 00:58:27,039 --> 00:58:29,960 do you mean you're gonna anti your equity? What equity? So the equity 790 00:58:29,960 --> 00:58:32,199 to your home. Now you have a paid off system, typically you're gonna 791 00:58:32,199 --> 00:58:37,519 find four to seven percent uh equity in your home when you go to sell 792 00:58:37,599 --> 00:58:42,119 with a house that has solar. That hasn't been my experience, and I'm 793 00:58:42,159 --> 00:58:45,320 not you know better than I do. But but if I have Dylan, 794 00:58:45,360 --> 00:58:47,119 you just bought a house with seller didn't make any difference at all? Right, 795 00:58:47,199 --> 00:58:50,199 No, But I was talking to Zach and I like, it wasn't 796 00:58:50,239 --> 00:58:52,800 made for me. So it's usually not doing it's too little I got any 797 00:58:52,880 --> 00:58:57,559 more. So that's so your solar is not adequate? Is that you're apparently 798 00:58:57,599 --> 00:59:00,480 not not what I learned in those summers is my first summer house. So 799 00:59:00,559 --> 00:59:04,360 I'm using too much Killer lots or whatever it is, because but it was 800 00:59:04,400 --> 00:59:07,239 made for the previous owners. But even the example will use zac. I'm 801 00:59:07,360 --> 00:59:10,360 gonna break even in ten years, right, so that's not the end of 802 00:59:10,360 --> 00:59:14,840 the world. But I have next door neighbors who are in their mid eighties 803 00:59:14,840 --> 00:59:16,199 who are buying. Don't think, what are you doing? What I was 804 00:59:16,199 --> 00:59:21,159 trying to get to what's doing? You know, Dave's a little older than 805 00:59:21,239 --> 00:59:24,599 everyone else here, and so I use him as an example. You had 806 00:59:24,599 --> 00:59:27,639 some good comebacks, so I was proud of you that well. I mean, 807 00:59:28,000 --> 00:59:30,599 at the end of the day, it's ownership versus renting, right, 808 00:59:30,639 --> 00:59:31,960 And it does probably add a little bit of value to the house when you 809 00:59:32,039 --> 00:59:36,960 say when you own it. Yeah, And and for his specific scenario, 810 00:59:37,400 --> 00:59:39,159 Dave isn't going to be someone who's going to finance this, so it's gonna 811 00:59:39,159 --> 00:59:43,960 be a lot less, right than the forty thousand dollars on average, right, 812 00:59:44,000 --> 00:59:47,480 Not everyone has the cash up front to pay for an entire system. 813 00:59:47,800 --> 00:59:52,320 When you have the cash, it's gonna drop that price down significantly, So 814 00:59:52,679 --> 00:59:55,159 the return on your investment is just gonna come quicker. Now, what are 815 00:59:55,199 --> 00:59:59,719 these other ones? You say that a sixty seventy eighty thousand dollars systems, 816 01:00:00,280 --> 01:00:04,599 So those are not your average homeowners. Those are people who are consuming a 817 01:00:04,639 --> 01:00:07,000 lot of electricity, and in that sense, you're going to see the return 818 01:00:07,039 --> 01:00:10,239 on your investment a lot sooner. But I didn't know how much you're using 819 01:00:10,320 --> 01:00:19,920 just the yeah electric ability because because yeah, Dylan has uh far seated his 820 01:00:20,000 --> 01:00:24,079 system. Plus dyling system was made by you know, Dylan. You paid 821 01:00:24,119 --> 01:00:28,480 to Tesla now, right, so you had Solar City at one point when 822 01:00:28,519 --> 01:00:30,440 they were here and then Tesla bottom and I have so I have nine years 823 01:00:30,559 --> 01:00:34,159 left on my lease that I took over from the previous owners. Once that 824 01:00:34,280 --> 01:00:36,840 lease is up, are those mine? Would have to give them back and 825 01:00:36,840 --> 01:00:39,320 get like an updated one. So you're so you can purchase them at the 826 01:00:39,400 --> 01:00:44,599 end of your lease. The difference is how much. It all depends on 827 01:00:44,639 --> 01:00:50,719 what it says in your contract. We didn't think there was such a thing, 828 01:00:50,800 --> 01:00:52,639 apparently, I am. Yeah, I didn't. I just took it 829 01:00:52,639 --> 01:00:55,119 over because I mean, why wouldn't I right, And but you have a 830 01:00:55,159 --> 01:00:59,920 baby system. You have like a five kilowatt system. The average homeowner has 831 01:01:00,039 --> 01:01:02,679 at least ten. It's also about I think the least is already six seven 832 01:01:02,760 --> 01:01:06,880 years old, so it was back in the mid twenty fifteen. So see 833 01:01:06,920 --> 01:01:10,079 that's the different thing. He has lease and buy a system, so we 834 01:01:10,119 --> 01:01:15,079 could tie into his lease system already, and that's making one payment. Yeah, 835 01:01:15,239 --> 01:01:16,880 make it a buy out rather than the lease. Yeah. And the 836 01:01:16,920 --> 01:01:22,719 reason why it's uh, I would do it if I was Dylan is because 837 01:01:22,719 --> 01:01:25,280 he's still stuck on net metering. So what that means is he's still on 838 01:01:25,360 --> 01:01:30,119 dollar for dollar cost opposed to what's going to happen in October. If you 839 01:01:30,119 --> 01:01:35,079 don't do anything, uh and not get solar, you're going your your buy 840 01:01:35,119 --> 01:01:37,239 back rate is going to go down. But since Dylan bought a home that 841 01:01:37,280 --> 01:01:40,960 already has solar, he has dollar for dollar costs. So whatever he sells 842 01:01:42,000 --> 01:01:46,039 back into the grid, he gets that back. So or what no, 843 01:01:46,039 --> 01:01:52,239 no, no, no dollar for dollar costs with in return In regards to 844 01:01:52,679 --> 01:01:58,639 net billing or net metering, is the rate you pay for your electricity is 845 01:01:58,679 --> 01:02:02,599 the same rate you sell it back to TEP. Zach, I was interested 846 01:02:02,639 --> 01:02:06,920 when you said you put the panels at a twenty percent angle. Yes, 847 01:02:07,039 --> 01:02:09,679 I've got an next door neighbor who's got to be forty five percent. Forty 848 01:02:09,679 --> 01:02:13,760 five percent on their pitch. Yes, I believe that's a little too much. 849 01:02:14,360 --> 01:02:16,880 So based off of our latitude and longitude lines, the optimal is from 850 01:02:16,880 --> 01:02:21,599 fifteen to twenty percent. So he's for forty five is really not good. 851 01:02:22,119 --> 01:02:25,960 I wouldn't say it's not good. Anything's better than help them more. In 852 01:02:27,000 --> 01:02:30,039 that scenario, you're saying, he has a flat roof, has a flat 853 01:02:30,119 --> 01:02:32,599 roof, right right, and he put up the panels and they don't bother. 854 01:02:32,800 --> 01:02:36,239 You go out there with your compass and check or what's the deal. 855 01:02:36,320 --> 01:02:39,920 Yeah, he's a president. Yeah, see to get him down. He 856 01:02:40,000 --> 01:02:43,800 sees him from his back yard. It's just bunking up. And I don't 857 01:02:43,800 --> 01:02:45,119 sham at all. I don't shaim at all. But I see him when 858 01:02:45,119 --> 01:02:49,199 I drive in and they're forty five degree And I thought, because I love 859 01:02:49,239 --> 01:02:52,679 the Tesla solar panels, because they're flat, you don't see them at all. 860 01:02:52,679 --> 01:02:54,199 It's h a president I loved. Yeah, that's what I have. 861 01:02:54,480 --> 01:03:00,599 But all right, so that's no, they're not they're not testless solar panels. 862 01:03:00,599 --> 01:03:02,679 It's solar city and they bought out the leases. So then now that 863 01:03:04,079 --> 01:03:09,360 Tesla is making it all back, basically they get paid. So like I 864 01:03:09,400 --> 01:03:13,519 got the whole solar panel across my roof, do you come in take that 865 01:03:13,559 --> 01:03:15,840 off? Put stronger ones on or more on or no? So those panels 866 01:03:15,880 --> 01:03:20,440 are gonna last you another twenty years, right, it's not leases and you 867 01:03:20,559 --> 01:03:22,960 take them away, well, if they take them away, but I mean 868 01:03:22,039 --> 01:03:24,559 as far as the durability of it, it's gonna last for a lot longer 869 01:03:24,599 --> 01:03:28,760 than what you'd expect. Every right, every life of the solar panel. 870 01:03:29,000 --> 01:03:31,719 Yeah, they were, so we warrant to them for twenty five years and 871 01:03:31,719 --> 01:03:35,800 that year twenty five they only degrade to nine two they were, So you're 872 01:03:35,800 --> 01:03:38,239 going to be able to keep using them for another, you know, twenty 873 01:03:38,280 --> 01:03:40,679 thirty years after that. Yeah. But so in a sense of say electric 874 01:03:40,679 --> 01:03:45,719 cars, they were installed I think like seven years ago. Is it like 875 01:03:45,760 --> 01:03:49,360 the technology now just that much more advanced than it was seven years ago. 876 01:03:49,400 --> 01:03:52,440 Our solar panel is still about the same. No, the solar panels had. 877 01:03:52,519 --> 01:03:54,239 The technology has come a long way. So they went from like poly 878 01:03:54,320 --> 01:03:58,840 crystalline panels to mono crystalline panels. So that's why you see some of these 879 01:03:58,880 --> 01:04:01,760 older ones they look kind of bluish, and now the new ones are like 880 01:04:01,880 --> 01:04:05,719 real black and sleek. So that's really the difference there. To take off 881 01:04:05,760 --> 01:04:10,840 my current ones and put on newer ones. No, I would leave those 882 01:04:10,920 --> 01:04:14,239 on and just add on to your system. Because you have a five kilowatt 883 01:04:14,280 --> 01:04:15,719 system. Now you don't have to add on. It just adds to my 884 01:04:15,719 --> 01:04:19,760 Solar City lease bill. No, you would do this separately. So you 885 01:04:19,760 --> 01:04:23,880 could either cash out a system, get thirty percent tax credit. You could 886 01:04:24,920 --> 01:04:28,760 take good sorry, take a loan out for it, or you could at 887 01:04:28,840 --> 01:04:30,920 least another system, but it's all tied in together, so you would just 888 01:04:30,920 --> 01:04:33,280 be paying two difference. Well, if you do it, Dylan, you 889 01:04:33,400 --> 01:04:36,000 need to go ahead and buy the system to get the tax ride off, 890 01:04:38,039 --> 01:04:40,239 right, Otherwise it doesn't make sense. And then you just get along and 891 01:04:40,280 --> 01:04:43,039 pay that like you're paying the least. How much is your least now, 892 01:04:44,559 --> 01:04:46,280 right, so you buy it, so maybe it's more, but then you 893 01:04:46,320 --> 01:04:48,679 own it. It's on top of the place. Well exactly, Yeah, 894 01:04:48,719 --> 01:04:50,719 that's what I'm trying to figure out. I thought, how long is that 895 01:04:50,840 --> 01:04:55,079 least? You know, no more years? I don't I forgot exactly how 896 01:04:55,079 --> 01:04:57,599 long and I think at fifteen year lease, so it's not that much you 897 01:04:57,599 --> 01:05:00,760 really buy out and then and then you see what it costs to upgrade. 898 01:05:00,880 --> 01:05:04,000 So now you now you don't have your electric bill. What do you have 899 01:05:04,039 --> 01:05:06,440 to figure out is what to do? Would you would your water system? 900 01:05:10,159 --> 01:05:12,400 Yeah, welcome to the olen ownership. I got a root awaken into that 901 01:05:12,440 --> 01:05:18,440 last week with water pipe break. Is welcome the home ownership, I know, 902 01:05:18,519 --> 01:05:21,039 and that water bill is big and that was like that was a big 903 01:05:21,119 --> 01:05:25,719 root awake and its own ownership. But so, Zach, what's step one? 904 01:05:25,800 --> 01:05:28,599 If a person says, you know, I'm really would like to explore 905 01:05:28,639 --> 01:05:30,719 this, what's step one? So you would contact me, we'd sit down 906 01:05:31,599 --> 01:05:34,960 and I have to look at first your electricity box. I want to see 907 01:05:35,000 --> 01:05:40,079 if that main panel is actually a two hundred rated amp or two twenty five. 908 01:05:41,000 --> 01:05:43,440 And then from there, I'm just gonna look and then I get your 909 01:05:43,440 --> 01:05:46,199 bill. I'll go over all your scenarios with you to see if the lease, 910 01:05:46,519 --> 01:05:50,639 loan or cash scenario fits you best. And then from there, you 911 01:05:50,719 --> 01:05:54,360 know, I'm the easy Yes, we still got to make sure your roof 912 01:05:54,440 --> 01:05:58,159 is okay and can handle the solar. We got to make sure that you 913 01:05:58,159 --> 01:06:00,679 know your authority having jurisdictions with it, like City of Tucson, p MA 914 01:06:00,760 --> 01:06:05,400 County. You know what I mean. Sometimes there's saturation zones, or there's 915 01:06:05,440 --> 01:06:10,800 transformer issues. I've come across homeowners. You know, they needed a twenty 916 01:06:10,800 --> 01:06:15,039 six kilowatt system, but that transformer can couldn't keep up with the demand of 917 01:06:15,079 --> 01:06:18,320 it, so they had to upgrade the whole transformer for them to even get 918 01:06:18,320 --> 01:06:24,480 solar. So just it it just step one is to get a hold of 919 01:06:24,519 --> 01:06:26,920 you and have you come to the house. Yes, look at this, 920 01:06:27,039 --> 01:06:30,199 look at what they have, look at their electrical grid, look at their 921 01:06:30,199 --> 01:06:32,840 bills, right, and go and go from there, Yes, sir. 922 01:06:33,079 --> 01:06:40,519 And one of the things that we've had a kind of uh my buddy Ron 923 01:06:40,599 --> 01:06:45,039 who's uh was my electric car guru and my solar guru. He said, 924 01:06:45,039 --> 01:06:48,519 the biggest problem with solar is that the salesman simply try to sell you way 925 01:06:48,559 --> 01:06:54,119 too much because they get baked commission. And so how do you how do 926 01:06:54,119 --> 01:06:57,920 you guard against that? So you really need to understand what your market is, 927 01:06:58,280 --> 01:07:00,920 right, uh, and you need like check your price per watt, 928 01:07:01,039 --> 01:07:03,920 right, That's that's the best ethical way you could figure it out. What 929 01:07:04,159 --> 01:07:08,719 per price per watt? What are they charging you price per watt? Right 930 01:07:08,920 --> 01:07:12,119 for a cash system, you should be looking at two sixty to three dollars, 931 01:07:12,159 --> 01:07:15,760 depending on how much electrical work is needed. If you're getting a loan, 932 01:07:15,960 --> 01:07:20,599 if you want a usually the solar consultant will have loan options for you 933 01:07:20,639 --> 01:07:24,480 as well. Right now, I can give you like a three point nine 934 01:07:24,599 --> 01:07:29,480 nine for example, but it's gonna be a lot more expensive that way. 935 01:07:29,519 --> 01:07:31,079 So the price per watt is going to go up a lot higher opposed to 936 01:07:31,079 --> 01:07:34,920 a cash pricing when you're exactly demeaned up. But when you're talking, we're 937 01:07:35,000 --> 01:07:39,800 running out of time here. We're talking about forty thousand dollars. Is that 938 01:07:40,199 --> 01:07:45,039 a fully financed including the finance charges or well, you said a person with 939 01:07:45,159 --> 01:07:48,719 cash can get a much better deal. What are we talking about? So 940 01:07:48,840 --> 01:07:54,199 you're looking at at least a thirty five percent discount in today's market and for 941 01:07:54,280 --> 01:07:59,760 a cash buyer. For a cash buyer, yes, yes, you still 942 01:07:59,800 --> 01:08:02,039 get thousand dollars. You still get your ten percent In America, Mesa, 943 01:08:02,360 --> 01:08:05,840 I mean it sounds to me like if I were to commit with cash, 944 01:08:05,880 --> 01:08:09,679 you would owe me money. Yeah, it sounds like an old brainer. 945 01:08:09,800 --> 01:08:12,599 That's why I'm making the switch to solars. You know, the ultimate power 946 01:08:12,639 --> 01:08:15,960 move. And like your guy, Warren Buffett says, energy deregulation will be 947 01:08:16,039 --> 01:08:20,760 the largest transfer of wealth in history. If you know, it's always about 948 01:08:20,800 --> 01:08:24,680 trust. You know, we would never have somebody on here that we didn't 949 01:08:24,680 --> 01:08:28,000 trust on the radio. Absolutely, Okay, I want to go further than 950 01:08:28,039 --> 01:08:30,119 that. I've known trust Zach for a long long time. And if you 951 01:08:30,159 --> 01:08:34,760 ever really knew Zach and his background and all, you'd be very you'd understand 952 01:08:34,800 --> 01:08:41,039 why he is nothing but the most ethical person. And you know we've been 953 01:08:41,079 --> 01:08:44,359 together for a while. He's like I almost consider another one of my kids. 954 01:08:44,680 --> 01:08:46,920 Okay, but you're not in my inheritance, so don't don't get that 955 01:08:46,960 --> 01:08:50,880 excited. Hey, I already missed out on all the restaurants, and uh, 956 01:08:51,199 --> 01:08:55,600 he's worked for us at the restaurants. He's the one I trusted. 957 01:08:55,920 --> 01:08:58,560 He's been here. But you know what, now he's a he's a dad, 958 01:08:58,600 --> 01:09:02,000 he's got four kids, he's he's he's got a wife. He's now 959 01:09:02,039 --> 01:09:05,520 the head coach of Tucson High. That's why Dylan and I decided that would 960 01:09:05,520 --> 01:09:09,439 go over to him. He's got all the things that matter. He will 961 01:09:09,479 --> 01:09:14,079 talk straight to you just like we do. And and and it's uh, 962 01:09:14,399 --> 01:09:17,000 it's definitely something I'm looking at doing, and I think Dylan's going to be 963 01:09:17,039 --> 01:09:20,239 looking at doing at least get the estimate. It's just like a free financial 964 01:09:20,279 --> 01:09:24,399 plan. It doesn't cost you anything for Zach to come to your house, 965 01:09:24,960 --> 01:09:28,880 talk football with you if you like football, talk kids if you want kids, 966 01:09:29,399 --> 01:09:31,159 and then give it and then talk to you about sola. And you 967 01:09:31,199 --> 01:09:34,640 know a lot of us just like just like when people with financial plans, 968 01:09:34,800 --> 01:09:36,960 when it comes to solo, it's like, I don't know enough, so 969 01:09:38,000 --> 01:09:41,960 I don't really like having a salesman come to my house and try to sell 970 01:09:42,000 --> 01:09:45,600 me Sola. No, I think I think. I think you had a 971 01:09:45,720 --> 01:09:48,399 very good point, Dean's it's so critical when you people always say, well, 972 01:09:48,439 --> 01:09:50,760 I'd like to learn a little bit more about stock, you know, 973 01:09:50,840 --> 01:09:56,079 and my question. But when you wake up in the morning and your car's 974 01:09:56,159 --> 01:09:59,279 not working. As your first trip to the library, you get a book 975 01:09:59,319 --> 01:10:01,520 on automocann you know, if you look up with them, your tooth is 976 01:10:01,600 --> 01:10:05,119 killing you. You're gonna stop by the library and get a book on dentistry. 977 01:10:05,239 --> 01:10:10,560 Now you're gonna find someone you trust and you're going to have them help 978 01:10:10,600 --> 01:10:14,640 you. And in this in your business, Zach, as you just mentioned, 979 01:10:14,840 --> 01:10:17,720 there are an awful lot of literally fly by night people. No, 980 01:10:17,920 --> 01:10:24,960 definitely, and Soiler needs to get regulated. You know, I'm here to 981 01:10:25,000 --> 01:10:29,520 say that one the people that are selling Soiler don't know anything and here they 982 01:10:29,560 --> 01:10:32,880 are, you know, writing fake emails for people, taking advantage of people. 983 01:10:32,880 --> 01:10:34,800 It needs to go. Like real estate and mortgages, you need to 984 01:10:34,840 --> 01:10:39,239 be licensed to secler. I think, especially with some of the kidmissions you're 985 01:10:39,279 --> 01:10:42,720 able to make. Yeah, yeah, and and but you know you stoff 986 01:10:42,800 --> 01:10:45,079 Zach, and you're there and you're one of the most personal people I know, 987 01:10:45,720 --> 01:10:49,359 and you'll make people feel at ease when you start talking to them and 988 01:10:50,079 --> 01:10:53,560 stuff. So if you're you know, if you're interested, and you probably 989 01:10:53,600 --> 01:10:57,319 won't remember who it is, just Coler Office you're interested in Solar, Cola 990 01:10:57,319 --> 01:11:00,640 Office will pass it on to Zach and uh and he can come come talk 991 01:11:00,680 --> 01:11:03,079 to you. Hey, who is that Solar guy you had on? You 992 01:11:03,079 --> 01:11:06,640 know, right, But again, if you're if you're giving it any thought 993 01:11:06,680 --> 01:11:10,920 whatsoever, you have no idea who to call, you have, no idea 994 01:11:10,920 --> 01:11:13,000 who you can trust, and and for you to go to the house and 995 01:11:13,039 --> 01:11:15,560 talk to him, of course nothing right, nothing right. Give him an 996 01:11:15,600 --> 01:11:17,960 estimate, of course nothing only if they do the sale. Yeah, okay, 997 01:11:18,359 --> 01:11:23,199 Well, hopefully anyone that's interested in absolutely give us a call. We'll 998 01:11:23,199 --> 01:11:28,680 get in contact with Zach. He would appreciate it. That's I'm an opportunity 999 01:11:28,800 --> 01:11:30,000 to at least talk to you. But even if you're just on defense of 1000 01:11:30,079 --> 01:11:35,399 trying to learn, how wonderful, how wonderful to have somebody in this arena 1001 01:11:35,479 --> 01:11:39,479 that you can trust, right, I mean, my god, that's worth 1002 01:11:39,960 --> 01:11:42,760 and the show. It's like, we're pretty smart people, deal, but 1003 01:11:43,239 --> 01:11:45,960 we had Dave. We hate having salesman come to while. Oh no, 1004 01:11:46,000 --> 01:11:48,399 I don't. I don't know who I can trust, right, but I 1005 01:11:48,479 --> 01:11:51,119 know if he comes from Greenberg Financial, I can trust him, all right. 1006 01:11:51,239 --> 01:11:57,279 Zach never left Solo pros. You need Sola. Get in touch with 1007 01:11:57,399 --> 01:12:00,880 us him somebody. We will help. We'll all through that. He will 1008 01:12:00,920 --> 01:12:04,119 get in contact with you, and I'm promise you it will be everything you 1009 01:12:04,319 --> 01:12:08,039 expect. Whether you buy it or not, we'll be back. This is 1010 01:12:08,079 --> 01:12:16,279 the money matter. Show. Thank you say, it's all a name, 1011 01:12:21,399 --> 01:12:25,960 welcome back. We appreciate Zach joining us, giving us all that information on 1012 01:12:26,079 --> 01:12:30,239 Solar and h I'm I'm gonna have to think about that myself, right, 1013 01:12:30,279 --> 01:12:31,960 I thought, Dave, I have my own experience with you have, so, 1014 01:12:32,079 --> 01:12:35,960 yeah, you really got tattooed one, Yeah, for sure. Yeah, 1015 01:12:36,199 --> 01:12:39,720 and I don't think that. Unfortunately, we know Zack's not going to 1016 01:12:39,800 --> 01:12:42,680 do that. So if I didn't have such so much white hair, I'd 1017 01:12:42,680 --> 01:12:46,079 probably consider Solar. But I'm thinking probably be a good deal for my wife, 1018 01:12:46,079 --> 01:12:49,479 and maybe not for me. I don't know. I think Solar is 1019 01:12:49,520 --> 01:12:56,239 gonna give me a white hair. Yeah. Oh your Reynald. So you've 1020 01:12:56,279 --> 01:13:00,000 got somebody over there. Uh, we've got to Sebastian has joined us. 1021 01:13:00,000 --> 01:13:03,439 Sebastian Borcini, right, Dean, Dean took off for a sec and Sebastian, 1022 01:13:03,520 --> 01:13:05,680 you have some stuff, some good stuff for us. Yeah, a 1023 01:13:05,680 --> 01:13:09,119 little bit. This week, I wanted to talk a little bit on the 1024 01:13:09,159 --> 01:13:13,359 housing market in mortgage rates. So on Thursday, mortgage rates hit the highest 1025 01:13:13,399 --> 01:13:16,720 level in over twenty years. We're at a seven point one percent Okay, 1026 01:13:17,359 --> 01:13:23,960 at the thirty year fixed thirty year fixed. Everything's perfect Freddie mac seven point 1027 01:13:23,960 --> 01:13:29,920 one. If everything's perfect, correct, twenty percent down everything first, there's 1028 01:13:29,920 --> 01:13:33,680 your average right there to that points. Revenues for Airbnb owners are down nearly 1029 01:13:33,720 --> 01:13:39,960 fifty percent in cities like Phoenix and Austin, Texas. Dave and I were 1030 01:13:40,000 --> 01:13:43,279 talking a little bit this week, do do is there enough Airbnb's out in 1031 01:13:43,319 --> 01:13:46,000 the market right now to make this to make it have an immediate impact on 1032 01:13:46,039 --> 01:13:50,479 housing? We didn't really know an answer to that, but I did find 1033 01:13:50,520 --> 01:13:55,319 a little bit more on that. So data from what's scary for the US 1034 01:13:55,399 --> 01:13:59,159 housing market here with is just how many Airbnbs there are? Dave, It's 1035 01:13:59,159 --> 01:14:04,039 an amazing number. It's incredible. Data from data shows one million Airbnb and 1036 01:14:04,119 --> 01:14:09,880 vrbo rentals compared to only about five hundred and seventy thousand homes for sale. 1037 01:14:10,720 --> 01:14:14,279 Really yes, wow, So in my opinion, this is going to create 1038 01:14:14,359 --> 01:14:17,920 a little bit of a down downward price pressure on housing. Will we see 1039 01:14:17,960 --> 01:14:24,439 a wave of force selling from airbnb and short term rent rental owners in this 1040 01:14:24,520 --> 01:14:27,680 time to come? Todd can bring us a little bit of first hand experience 1041 01:14:27,680 --> 01:14:30,439 on the downward price pressure within the rental market. As you're trying to rent 1042 01:14:30,520 --> 01:14:32,920 your house in one of those big bubble cities, if you will, Phoenix, 1043 01:14:32,960 --> 01:14:35,880 Arizona. Yeah, I've been. My house has been on the market 1044 01:14:35,920 --> 01:14:42,800 for about twenty one days and Phoenix zero showings. That's interesting, I'm trying 1045 01:14:42,840 --> 01:14:45,079 that shocking because the rental market has been so red hot. Well, and 1046 01:14:45,119 --> 01:14:49,239 I spoke with my property manager and she said, your house is priced correctly, 1047 01:14:49,600 --> 01:14:54,039 but over the last eight months, we've seen a surge of inventory in 1048 01:14:54,079 --> 01:14:59,560 the rental space. So people again bashing you and I were talking, people 1049 01:14:59,560 --> 01:15:02,840 are often their mortgage great. Absolutely, they're not selling their house. They 1050 01:15:02,920 --> 01:15:06,640 decided anybody, anyone that bought over two years ago is looking good and they're 1051 01:15:06,640 --> 01:15:10,640 going to cover that rate for rather than seal the Hongers they're able to, 1052 01:15:12,880 --> 01:15:15,479 they're renting it, right, and especially for the Airbnb's who are short term 1053 01:15:15,479 --> 01:15:19,520 rental renters. And now that that's not cutting the bills, paying the bills 1054 01:15:19,560 --> 01:15:23,520 anymore with the fifty percent revenue drop, but they gotta do. They gotta 1055 01:15:23,520 --> 01:15:27,399 switch from short term to long term rentals. Switching the long term rentals just 1056 01:15:27,600 --> 01:15:30,119 increased inventory. Right. No, that's interesting too. You said that your 1057 01:15:30,119 --> 01:15:32,720 realtor or your property managers said that it happened eight months ago that they've been 1058 01:15:32,720 --> 01:15:36,359 seeing this issue and Airbnb. I remember in the Super Bowl when they had 1059 01:15:36,399 --> 01:15:40,520 the Super Bowl there, you had waste management up in Phoenix all on one 1060 01:15:40,560 --> 01:15:43,880 weekend. Airbnb people like they have. There's these people that have like one 1061 01:15:43,920 --> 01:15:46,800 hundred Airbnbs up there. They were struggling to film when you have two of 1062 01:15:46,840 --> 01:15:50,880 the most popular things going on at the same time in the same city, 1063 01:15:51,680 --> 01:15:55,000 they couldn't fill them. And now all of a sudden, eight months later, 1064 01:15:55,000 --> 01:15:59,039 they're turning them into it. So they're realizing Airbnb starting to struggle. 1065 01:15:59,319 --> 01:16:01,399 Right, personally, I'd rather go to a hotel now it's easier, you're 1066 01:16:01,439 --> 01:16:08,840 out quicker, are making so many rules and regulations to a house that it's 1067 01:16:08,880 --> 01:16:12,239 not even enjoyable, and it's easier to go to a hotel. I think 1068 01:16:12,279 --> 01:16:14,840 the Airbnb thing is if you're more than two people, right, just in 1069 01:16:14,880 --> 01:16:16,079 that typical pretty much. Yeah, yeah, if you're two people, you're 1070 01:16:16,079 --> 01:16:19,239 gonna go to a hotel, why not? Yeah? But also, I 1071 01:16:19,279 --> 01:16:24,239 mean Phoenix is a metropolis, right, so you're not getting the same rental 1072 01:16:24,319 --> 01:16:28,279 pressures in different cities. The ones that have been hit hardest are like things 1073 01:16:28,319 --> 01:16:30,800 like Goodyear in Glendale, things that haven't been hit as harder, thing like 1074 01:16:30,840 --> 01:16:35,520 Tempe, because obviously Tempe has a special niche of having asu you're going to 1075 01:16:35,600 --> 01:16:39,760 have a constant influx of renters every single year, during every single time. 1076 01:16:40,399 --> 01:16:45,720 Fortunately, my house in Su right by Su wasn't on the market until the 1077 01:16:45,720 --> 01:16:49,239 beginning of August, so at that point you kind of already missed the influx 1078 01:16:49,279 --> 01:16:54,960 of people that are coming into school. So Tempe hasn't experienced such a huge 1079 01:16:55,039 --> 01:16:59,199 drop in rental, but they are now experiencing it because school has already started. 1080 01:16:59,239 --> 01:17:02,800 So different pockets and different parts of Phoenix, but overall, I mean, 1081 01:17:03,359 --> 01:17:06,920 Tucson doesn't seem to be having too many issues with rentals. But it's 1082 01:17:06,960 --> 01:17:10,640 interesting though, because we will. We have a lot of rent to builds 1083 01:17:11,000 --> 01:17:14,720 right now, and as those hit the market, maybe that leads to the 1084 01:17:14,760 --> 01:17:16,119 same pressures we're seeing in Phoenix. Right to build, build a rent, 1085 01:17:16,119 --> 01:17:20,479 build a rent, build the rents correct, which means and that's those neighborhood 1086 01:17:20,520 --> 01:17:25,520 you talked about that are being built specifically for renting. Right, They're not 1087 01:17:25,560 --> 01:17:28,640 gonna sell any of those houses, They're gonna rent them. All. Yeah. 1088 01:17:28,880 --> 01:17:31,199 I mean a third of all homes in the inventory in the marketplace right 1089 01:17:31,239 --> 01:17:36,319 now are new builds. That's the highest in the you know, it's going 1090 01:17:36,319 --> 01:17:41,000 back to like two thousand. I mean, it's it's only new homes right 1091 01:17:41,039 --> 01:17:44,720 now that are really available. Nobody. Nobody wants to give up their mortgage, 1092 01:17:44,800 --> 01:17:47,479 right yeah. And to that points about speaking about Phoenix a little bit 1093 01:17:47,680 --> 01:17:54,680 more number of short term rentals eighteen thousands, it's more than double the number 1094 01:17:54,720 --> 01:17:59,600 of home listings for sale eight thousands. That's amazing. I mean, I 1095 01:17:59,640 --> 01:18:03,079 mean if you just continue to have rent prices stay, you know, because 1096 01:18:03,119 --> 01:18:08,039 if you look nationally, rent prices are still ticking a little bit higher, 1097 01:18:08,720 --> 01:18:11,880 but in Phoenix falling off a cliff really, and you're going to see that 1098 01:18:11,960 --> 01:18:15,199 in those big hot pocket areas that we see huge run ups in houses house 1099 01:18:15,199 --> 01:18:19,279 prices from the pandemic. Phoenix was a huge area, Austin, Texas was 1100 01:18:19,279 --> 01:18:23,840 a huge area. There was a couple of Florida areas right Nevada. So 1101 01:18:24,039 --> 01:18:27,439 those are the areas that are probably gonna be the hardest hit in rentals now, 1102 01:18:27,479 --> 01:18:30,039 because what do you think those people are doing when they're buying those homes 1103 01:18:30,079 --> 01:18:33,039 in the pandemics, most of them were doing the airbnb right now they have 1104 01:18:33,079 --> 01:18:35,800 to go to long term rentals or they have to force sell. That's the 1105 01:18:35,880 --> 01:18:41,560 real canary in the coal mine is what happens when there's too many rentals in 1106 01:18:41,600 --> 01:18:44,439 the marketplace, because then you can't find a renter in there, and if 1107 01:18:44,439 --> 01:18:46,760 you can't make those cash flow for certain three months, then you have to 1108 01:18:46,840 --> 01:18:49,399 force set. No matter how much you love your mortgage, right, you 1109 01:18:49,399 --> 01:18:53,119 may have to let it go, right, especially if you have a mortgage 1110 01:18:53,279 --> 01:18:56,159 a house that you're really living at and this is just an investment property, 1111 01:18:56,640 --> 01:18:59,800 you gotta let it go. And a lot of people have investment properties right 1112 01:18:59,800 --> 01:19:02,560 now, you probably more than ever in history because that's what people have grown 1113 01:19:02,640 --> 01:19:05,439 up with in this economy. I mean, the last thirty years, buying 1114 01:19:05,520 --> 01:19:09,640 home was a great investment other than two thousand and eight. Even that though 1115 01:19:09,800 --> 01:19:12,359 you knew, if you just would hold on and you weren't your responsible with 1116 01:19:12,399 --> 01:19:15,279 your cash flow, you can make it through. So a lot of people 1117 01:19:15,319 --> 01:19:16,359 continue to do that. We see it with China, we see it with 1118 01:19:17,119 --> 01:19:21,560 Canada. There's China and Canada. The real real estate problems that really see 1119 01:19:21,600 --> 01:19:26,159 coming in the foreseeable future that could lead the spill over to the US and 1120 01:19:26,319 --> 01:19:31,159 exacerbate the problems the trends that were already continue to see. Yeah, I 1121 01:19:31,159 --> 01:19:34,479 think, thank you, Sebastian. I think it's time for the EV garage. 1122 01:19:34,560 --> 01:19:39,600 What do you think? Beep be beep. You know, only seventeen 1123 01:19:39,640 --> 01:19:44,279 percent of cars are least and that's actually down from eighteen percent last year. 1124 01:19:44,279 --> 01:19:46,640 You would think Leasy maybe had become a little bit more popular, but it's 1125 01:19:46,680 --> 01:19:51,239 actually becoming less popular. But if you're interested in an electric vehicle, you 1126 01:19:51,359 --> 01:19:55,399 might want to consider Leasy. And I'm gonna make a case here. I 1127 01:19:55,439 --> 01:20:00,359 own the Mercedes back in nineteen ninety when Lexus was introduced, and the value 1128 01:20:00,359 --> 01:20:04,039 of that Mercedes dropped by about forty percent in thirty days. It dropped just 1129 01:20:04,079 --> 01:20:09,319 plummeted. I could see the same thing happening with electric vehicles. This technology 1130 01:20:09,359 --> 01:20:15,680 evolves, breakthrough technology could make your current electric vehicle that you bought lose value, 1131 01:20:15,720 --> 01:20:18,680 lose dramatic value. Toyota has a solid state battery they're talking a lot 1132 01:20:18,680 --> 01:20:25,159 about. Ford has filed a patent that would charge the EV while you drive. 1133 01:20:25,920 --> 01:20:30,399 The technology bottom line, the technology is rapidly changing the argument against leasing. 1134 01:20:31,239 --> 01:20:35,039 You don't get the fifteen percent tax rebate. I get that, but 1135 01:20:35,199 --> 01:20:43,640 I would argue that if a technology comes out that is just overwhelmingly better than 1136 01:20:43,720 --> 01:20:48,039 what we're dealing with now, a fifteen percent drop would be nothing because you'd 1137 01:20:48,079 --> 01:20:51,079 be looking at having a four or five six year old cell phone that would 1138 01:20:51,079 --> 01:20:54,920 just be worthless. That was exactly the example I was going to talk about, 1139 01:20:55,000 --> 01:20:57,880 is if you had BlackBerry and you're able to get a fifteen percent discount 1140 01:20:57,880 --> 01:21:00,319 on that, and then two years later the iPhone comes out. That's what 1141 01:21:00,359 --> 01:21:02,760 anyone wants. And the nice thing about about the leasing part for me is 1142 01:21:03,760 --> 01:21:09,359 I'm not really committed to the technology, right. I mean, if three 1143 01:21:09,399 --> 01:21:13,079 years from now, just you know, this is just a nuisance and it's 1144 01:21:13,119 --> 01:21:15,760 a wonderful car, I just can't go anywhere because I don't have a spare 1145 01:21:15,800 --> 01:21:18,800 tire and my range is well of a sudden, in three years, your 1146 01:21:18,880 --> 01:21:21,119 range, the new range is going to be six hundred miles, six or 1147 01:21:21,159 --> 01:21:27,279 seven hundred miles with slide states battery, with a Lexus or something on your 1148 01:21:27,439 --> 01:21:30,880 right. So from a financing point of view, it's probably also a better 1149 01:21:30,920 --> 01:21:34,119 move. It's I'm not. I didn't follow that. I mean because I 1150 01:21:34,119 --> 01:21:38,279 mean if you if you pass away, you know, the nice thing hit 1151 01:21:38,399 --> 01:21:41,920 my wife. I love my wife. But she said, you know, 1152 01:21:42,199 --> 01:21:48,119 because the Tesla has a recumbent breaking so if you take your it's like a 1153 01:21:48,119 --> 01:21:51,880 golf cart. If you take your foot off the pedal, it doesn't roll 1154 01:21:51,960 --> 01:21:55,920 to a stop. It stops, I mean didn't stop on a dime, 1155 01:21:56,000 --> 01:21:59,279 but it slows down very dramatically. She said, you know, this is 1156 01:21:59,399 --> 01:22:02,439 really handy for an older person who has a cardiac event or something. You're 1157 01:22:02,479 --> 01:22:06,239 not gonna go shooting off into traffic. It's gonna just come to a stop. 1158 01:22:08,079 --> 01:22:11,119 So there you go. That has happened. Stuff like that has happened. 1159 01:22:11,119 --> 01:22:14,239 So we also in the V garage, we've talked a lot about range. 1160 01:22:14,239 --> 01:22:17,039 It's been a big issue for me, Todd per Triple A. This 1161 01:22:17,079 --> 01:22:21,039 is we actually have statistics now. Range is negatively and this is for all 1162 01:22:21,079 --> 01:22:25,399 you folks out there are to get a one hundred and fifty miles per charge 1163 01:22:25,520 --> 01:22:30,479 out of your three hundred and thirty mile long range car. Negative range is 1164 01:22:30,560 --> 01:22:39,079 negatively impacted seventeen percent. When the temperatures ninety five, it's impacted thirty one 1165 01:22:39,199 --> 01:22:45,399 percent when the temperature is above one oh four. So in Tucson, Arizona, 1166 01:22:45,600 --> 01:22:48,880 pretty much for the entire summer, you're gonna get seventy percent of the 1167 01:22:49,119 --> 01:22:53,880 range that you thought you were going to get. And that that counts for 1168 01:22:53,920 --> 01:22:57,000 going to Phoenix, that counts for going to San Diego. You're gonna get 1169 01:22:57,039 --> 01:23:00,720 seventy percent of what was sold to you because the heat. Huh, can 1170 01:23:00,760 --> 01:23:04,159 you put a number on that, like on how many miles? One hundred? 1171 01:23:04,319 --> 01:23:09,159 So, so like the Tesla model, why that I got to there's 1172 01:23:09,279 --> 01:23:12,760 saying three hundred and thirty mile range, But that's without the air conditioner in 1173 01:23:12,840 --> 01:23:15,560 seventy degree weather on flat ground, going sixty five miles an hour, Okay, 1174 01:23:15,520 --> 01:23:19,680 And nobody's right, how much is the acus when the when it's one 1175 01:23:19,760 --> 01:23:24,439 h five hour? Was it's all part of that thirty one Yeah, the 1176 01:23:24,520 --> 01:23:27,920 thirty one percent. So so you're three hundred and thirty mile range, it 1177 01:23:28,239 --> 01:23:31,319 becomes two hundred mile two hundred and thirty miles, right, And if you're 1178 01:23:31,399 --> 01:23:35,199 driving more than sixty five, now you're at one ninety, you know, 1179 01:23:35,479 --> 01:23:39,840 and if you've got the radio on, maybe you're one eighty. And the 1180 01:23:39,920 --> 01:23:43,520 whole thing is is a work in progress. It's a work in progress. 1181 01:23:43,960 --> 01:23:46,000 But cooler temperatures are going to be good. That's something I'm looking forward to 1182 01:23:46,560 --> 01:23:55,239 and another reason to anxiously await football season because then comes the cooler weather. 1183 01:23:55,319 --> 01:23:59,279 Wait, are you telling me you're gonna have another climate change? The climate 1184 01:23:59,359 --> 01:24:02,159 is constantly changing. No, constantly. No, it's amazing, you know 1185 01:24:02,199 --> 01:24:06,319 it's it's interesting with the polar ice caps melting, isn't it a mystery? 1186 01:24:06,560 --> 01:24:11,159 Why? Why? Why are one hundred and fifty ships waiting to go to 1187 01:24:11,319 --> 01:24:15,359 the Panama Canal because there's no water because of the drought where I was whether 1188 01:24:15,359 --> 01:24:16,960 there's not a there's not a drought in the ocean where I guess not. 1189 01:24:17,239 --> 01:24:21,079 I guess I don't know where all that water from the polar caps melting's gone. 1190 01:24:21,119 --> 01:24:24,640 But it's not going to the Panama Canal. We know that much. 1191 01:24:26,760 --> 01:24:29,359 No. Life is a life is the mystery, Dylan. You look at 1192 01:24:29,399 --> 01:24:30,439 that and go, wait a second. Both of the polar ice caps are 1193 01:24:30,520 --> 01:24:36,439 melting, but in the middle we're out of water. If you'll get it, 1194 01:24:36,520 --> 01:24:40,319 you don't, how is that happening? All right, we'll be back 1195 01:24:40,439 --> 01:24:44,840 right after this break with more climate change news. Thanks for joining us, 1196 01:24:45,039 --> 01:24:50,079 say it's all a name. Welcome back to the Money Matter Show. My 1197 01:24:50,199 --> 01:24:54,359 name is Todd Blick. I'm here with Dylan Greenberg, Dean Greenberg, and 1198 01:24:54,479 --> 01:24:58,600 Dave Sherwood. And we had a little talk about the inflation Reduction Actor earlier 1199 01:24:58,640 --> 01:25:02,399 when Zach was on, and obviously that has some impacts with the chips going 1200 01:25:02,439 --> 01:25:05,439 on with the semi does. I was actually actually and we you know, 1201 01:25:05,560 --> 01:25:10,439 Biden is restricting shipment of chips to China, and we're going to talk about 1202 01:25:10,479 --> 01:25:14,159 chips and dealing those gritos or lays or no, no, no, we're 1203 01:25:14,239 --> 01:25:17,680 talking about We're talking about computer chips dealing. We're talking about computer chips and 1204 01:25:17,720 --> 01:25:20,359 we're not actually talking about shipping. You know, you hear a lot of 1205 01:25:20,479 --> 01:25:26,760 talk about the AI, artificial intelligence and the chips that run that, and 1206 01:25:27,000 --> 01:25:29,279 so I started to do a deep dive into this. And you know, 1207 01:25:29,359 --> 01:25:34,760 there's two primary types of chips. There's a graphic processing unit that's a GPU. 1208 01:25:35,920 --> 01:25:42,039 They have more cores than a CPU, which is a central processing unit. 1209 01:25:42,279 --> 01:25:45,560 CPUs are what have been used in the past. GPU, the graphic 1210 01:25:45,680 --> 01:25:48,560 process and unit, are the new deal. They're smaller, they have more 1211 01:25:48,600 --> 01:25:55,720 power, the additional cores allowed to handle more mathematical and geographical calculations at once 1212 01:25:55,800 --> 01:26:00,760 with greater efficiency. CPUs are more general, the more of a general component. 1213 01:26:00,920 --> 01:26:05,319 That's what we've had in the past. GPUs. This the graphic processing 1214 01:26:05,399 --> 01:26:11,319 units, which which is what runs AI, is what Nvidia controls. They 1215 01:26:11,399 --> 01:26:17,560 have eighty percent of the GPU market. And my biggest concern interestingly, and 1216 01:26:17,840 --> 01:26:23,760 Video will report earnings next Wednesday after the close, and that'll be a that'll 1217 01:26:23,760 --> 01:26:27,399 be a market mover. I think certainly it'll be an Nvidio mover because it 1218 01:26:27,479 --> 01:26:30,600 moves ten to twenty points a day without earnings, so it'll it'll certainly move 1219 01:26:30,640 --> 01:26:34,640 that stock. My biggest concern with a company that has eighty percent of the 1220 01:26:34,720 --> 01:26:42,680 market is is there really anywhere to go but down? Well, yeah, 1221 01:26:42,840 --> 01:26:45,560 there could be a way to go up because you have an all time high 1222 01:26:45,560 --> 01:26:47,920 and money market funds. So when you have that mount of dry powder, 1223 01:26:48,159 --> 01:26:51,319 we know we have dry powder on the sidelines. So as much as people 1224 01:26:51,399 --> 01:26:55,680 are cautious at this time, there's plenty of dry powder, I agree, 1225 01:26:55,720 --> 01:27:00,439 But what but what I guess what I'm saying is is there anywhere for Video's 1226 01:27:00,479 --> 01:27:03,439 business to go, but down in other way in terms of percentage of the 1227 01:27:03,560 --> 01:27:06,800 market. As we saw what happened to Tesla, I was gonna say, 1228 01:27:06,800 --> 01:27:11,199 ask Tesla, Ask Tesla. Tesla was four hundred dollars. Now it's two 1229 01:27:11,319 --> 01:27:13,479 hundred dollars, right, But it should have never went to four hundred in 1230 01:27:13,479 --> 01:27:15,479 the first place. They've because the market, once you get your fouria, 1231 01:27:15,520 --> 01:27:21,560 it's gonna gonna keep going. Hello, That's what I'm talking about, keep 1232 01:27:21,600 --> 01:27:25,159 its edge against everybody. They have a head start, like Tesla had a 1233 01:27:25,199 --> 01:27:28,439 head start, But that new chip that's gonna come out next, if it's 1234 01:27:28,439 --> 01:27:30,720 able to be astronomically better than the other one, still, they're going to 1235 01:27:30,840 --> 01:27:33,520 keep their market shry, if not grow a little bit, because everybody is 1236 01:27:34,079 --> 01:27:39,399 wanting in video chips the most. So if that's kind of the only way 1237 01:27:39,439 --> 01:27:42,960 you could grow Otherwise, yeah, you're the market is saturated. AMD's coming 1238 01:27:43,000 --> 01:27:45,880 for them time one stomach connect, They're all then want to come for them. 1239 01:27:45,199 --> 01:27:49,159 Everybody's everybody's climbing the mountain, and the hardest thing in the world is 1240 01:27:49,199 --> 01:27:51,359 just stay on top of the mountain. It's the same idea as Apple and 1241 01:27:51,399 --> 01:27:55,119 iPhone. They came out the iPhone. Then all of a sudden, the 1242 01:27:55,600 --> 01:27:58,880 Google the Galaxy came out Samsung. Now, how's a huge share? What 1243 01:27:58,920 --> 01:28:01,159 helps you stay on top of them though? Like a good ceo? Yes, 1244 01:28:01,640 --> 01:28:04,079 the good ceo. They've got a great CEO, you know, one 1245 01:28:04,159 --> 01:28:09,159 that can really talk. That's why Elon Musk and Tesla stock. It didn't 1246 01:28:09,159 --> 01:28:11,880 even have to do good he didn't have to show good results. He just 1247 01:28:11,960 --> 01:28:15,560 talked about stuff and it went up. You know what I saw last Friday 1248 01:28:15,680 --> 01:28:19,239 was a picture of a one of those car shipment trucks coming to Arizona with 1249 01:28:19,319 --> 01:28:23,720 the cyber trucks on them. So they're actually making them. Yeah, they 1250 01:28:23,760 --> 01:28:27,680 are starting to deliver thee with which cybertruck, the Tesla cyber truck. Yeah. 1251 01:28:27,760 --> 01:28:30,680 Really it was like some ugly got awful look at things they're coming out. 1252 01:28:30,960 --> 01:28:33,560 They're actually making those. There's like six on that truck. Yeah, 1253 01:28:33,600 --> 01:28:36,760 that's that's what the plant in Austin, Texas was made for, was to 1254 01:28:36,840 --> 01:28:41,920 make the cyber truck. And now he's the pickups or the Semis, the 1255 01:28:41,960 --> 01:28:45,439 pickups, the pickups personal car that looks just like something with the bulletproof. 1256 01:28:45,479 --> 01:28:49,359 When was that he broke with the baseball at the Yeah, really yeah, 1257 01:28:49,520 --> 01:28:53,600 and I will it looks really ugly. Plus, if you're talking about ev 1258 01:28:54,880 --> 01:28:59,319 capacity, battery capacity, try to toast something. Oh yeah, oh your 1259 01:28:59,359 --> 01:29:02,840 capacity. We found out about that a story that ran last week about somebody 1260 01:29:02,920 --> 01:29:09,720 out of Canada that it was taking and towing something to Detroit I think it 1261 01:29:09,880 --> 01:29:14,920 was, and somewhere in the Midwest. He he pulled over and abandoned his 1262 01:29:15,039 --> 01:29:19,039 vehicle and called Tesla and said, you're cheers. I can't do it anymore. 1263 01:29:19,199 --> 01:29:21,760 I just can't do it. I've been a good soldier, I've done 1264 01:29:21,760 --> 01:29:26,840 the best I can. I can't do it anymore. Yeah, I don't 1265 01:29:26,880 --> 01:29:30,399 know what what you can give me back in the way of money, but 1266 01:29:30,840 --> 01:29:33,399 I'm out at the end of the day. It is the future, but 1267 01:29:33,520 --> 01:29:36,399 it's gonna take a while for it to get there to be the most lepecially 1268 01:29:36,439 --> 01:29:41,960 for convenient car like yeah and the Semis especially you get a Semi, you 1269 01:29:42,000 --> 01:29:44,720 can go twelve hundred miles on a single tank. I think this. The 1270 01:29:44,960 --> 01:29:48,439 Tesla's go like five. I thought it was three hundred and something maybe, 1271 01:29:48,560 --> 01:29:51,680 but it's like six hours of charge. It takes you twenty minutes to fill 1272 01:29:51,720 --> 01:29:56,039 up with diesel tru semi. It takes six hours a charge at diesel. 1273 01:29:56,199 --> 01:29:59,920 You know how slow that's gonna that's gonna make If they make it trust semi 1274 01:30:00,279 --> 01:30:02,960 only electric for whatever reason, that's going to slow down the shipping industry by 1275 01:30:03,000 --> 01:30:06,079 a ton, right, show down, lead time, slow down deep and 1276 01:30:06,079 --> 01:30:09,760 all of a sudden they're gonna make trains only electric. That's going to slow 1277 01:30:09,800 --> 01:30:12,479 those down. Right, You have a long way to go. But back 1278 01:30:12,520 --> 01:30:14,600 to the video, I mean, if you, if you have that CEO 1279 01:30:14,760 --> 01:30:19,840 continue to even claim that they have a new, better product that's gonna keep 1280 01:30:19,880 --> 01:30:24,159 going up. Well. Last Monday, Morgan Stanley named the stock their top 1281 01:30:24,239 --> 01:30:28,039 pick, predicted the earnings report on Wednesday will be a strong one and the 1282 01:30:28,119 --> 01:30:34,119 stock has material upside ahead. Raley continued into Tuesday, recouping much of the 1283 01:30:34,199 --> 01:30:39,479 ten day fifteen percent pullback. The only thing that is to be no is 1284 01:30:39,640 --> 01:30:44,880 all the earnings that we've gotten so far four quarter two. Even when companies 1285 01:30:44,920 --> 01:30:49,039 are beating their EPs, their earnings per share quota, they are still averaging 1286 01:30:49,119 --> 01:30:56,359 a zero percent return after that day's trade. So investors are really looking for 1287 01:30:56,680 --> 01:31:01,760 profitable like the earnings to equal what the valuation of the stock is worth because 1288 01:31:01,800 --> 01:31:05,840 we saw that these stocks went up a huge amount and they had to prove 1289 01:31:05,920 --> 01:31:10,600 it in earnings, and they're beating earnings, but they're not doing as much 1290 01:31:10,640 --> 01:31:13,880 as the stock went up, and so a lot of these companies are not 1291 01:31:14,039 --> 01:31:15,520 doing as well even when they're beating earnings. So if the video comes out 1292 01:31:15,520 --> 01:31:20,520 and beats earnings, maybe it's not enough to beat to justify the four thirty. 1293 01:31:20,840 --> 01:31:25,840 Maybe it justifies four hundred, right, So that's something to keep It 1294 01:31:26,000 --> 01:31:30,079 was pretty gus. The biggest thing within video, the difference between N Video, 1295 01:31:30,079 --> 01:31:31,760 I think, and Tesla. When Tesla is that four hundred, is 1296 01:31:32,119 --> 01:31:35,119 that Nvideo is producing the chips and they're sold out of these chips. Yeah, 1297 01:31:35,680 --> 01:31:40,399 Tesla people were buying on Elon Musk and the idea of the future, 1298 01:31:40,840 --> 01:31:44,239 and Video is already producing what they're talking about and they'll just keep building on 1299 01:31:44,319 --> 01:31:47,079 it. So there's a little, I think a little more valued than Tesla 1300 01:31:47,199 --> 01:31:50,760 is just it's price earnings ratio is ridiculous, like a thousand. At one 1301 01:31:50,760 --> 01:31:54,880 point, there was no reason it should have been like sixteen hundred dollars a 1302 01:31:54,920 --> 01:31:58,880 share before they split, and now it's back more realistic, but that's the 1303 01:31:58,920 --> 01:32:00,520 biggest difference I see. But when the two I think one of the most 1304 01:32:00,600 --> 01:32:04,520 boring stocks on the on the Stock Exchange woke up last week US Steel. 1305 01:32:05,319 --> 01:32:09,039 US Steel has to be one of them because they were they were trying to 1306 01:32:09,079 --> 01:32:11,920 get bought out down. Well, they were down, They're down fifteen percent 1307 01:32:12,000 --> 01:32:14,279 this year. Then I was trying to get bought out. Well, it's 1308 01:32:14,399 --> 01:32:16,239 over the week Over the weekend, one of their competitors said hey, we're 1309 01:32:16,279 --> 01:32:20,439 gonna buy you. And the stock of Monday was up thirty percent. Yeah, 1310 01:32:20,600 --> 01:32:23,600 I mean that's I don't think it's ever had a move like that in 1311 01:32:23,680 --> 01:32:26,600 history. Well, it's because the company valued the shares that basically what well, 1312 01:32:26,680 --> 01:32:29,279 Cleveland Cliffs said, here's what we think you're worth, and which was 1313 01:32:29,359 --> 01:32:31,319 thirty percent above where it was trading exactly. And of course then you think, 1314 01:32:31,319 --> 01:32:33,760 well, because it's gonna be a bidding more Cleveland. And I'm thinking 1315 01:32:33,800 --> 01:32:41,560 to myself that I cannot imagine a scenario where this government, Federal Trade Commission 1316 01:32:41,680 --> 01:32:45,680 would allow that. Oh no, under under the Biden regime, would allow 1317 01:32:45,279 --> 01:32:48,960 Cleveland Cliffs and US steal the merger. They get mad at Activision bluesom I 1318 01:32:49,000 --> 01:32:55,199 know and it's it's it's ridiculous. Land is interesting is we talked about a 1319 01:32:55,199 --> 01:32:59,439 couple of weeks ago the equal weighted under performing the S ANDP, and normally 1320 01:32:59,479 --> 01:33:02,199 when that happens we see a reversal. Well, investors are responding right now, 1321 01:33:02,279 --> 01:33:08,560 they're rotating from the market cap weighted SPY to the equal weighted rsp We've 1322 01:33:08,560 --> 01:33:13,119 seen that over the last month, so continue to probably see that trend continue, 1323 01:33:13,479 --> 01:33:15,199 and again, continue to be wary of the pump and dump people. 1324 01:33:15,880 --> 01:33:19,640 These are the people that are out there trying to hype penny stocks. They're 1325 01:33:19,840 --> 01:33:27,640 emailing, they're texting, they're calling, they're pervasive, They're everywhere. This 1326 01:33:27,880 --> 01:33:30,840 dollar dollar and a half stock, it's really got a great future. Blah 1327 01:33:30,840 --> 01:33:33,159 blah blah. It's called pump and dump. Don't have a short term memory. 1328 01:33:33,239 --> 01:33:36,439 Three years ago, every penny stock went up because of that in the 1329 01:33:36,479 --> 01:33:40,640 pandemic, everybody had that extra money from the stimulus. All those companies went 1330 01:33:40,720 --> 01:33:43,680 up. Everybody thought it wouldn't stop going up. And now the majority of 1331 01:33:43,720 --> 01:33:45,640 those companies are back down to being penny stocks because that's where they belong. 1332 01:33:46,000 --> 01:33:48,359 And a lot of people did not sell when they were fitty dollars to share, 1333 01:33:48,640 --> 01:33:51,199 so they lost their money. Yeah, so just be careful of that. 1334 01:33:51,680 --> 01:33:56,600 Marcus has backed off five percent from the high. I'd like to see 1335 01:33:56,600 --> 01:34:00,199 it back off another five to ten percent because I think that's going to give 1336 01:34:00,279 --> 01:34:02,800 us a much more solid base from which we can build. You'll give a 1337 01:34:02,840 --> 01:34:05,880 lot of people better feeling in their stomach rather than why are we up so 1338 01:34:06,039 --> 01:34:10,399 high? That's what we've been wondering for the last summer, when when stocks 1339 01:34:10,520 --> 01:34:14,279 move up parabolically, they moved down parabolically. I don't want that, right. 1340 01:34:14,479 --> 01:34:17,119 I want a steady gain the market's average to ten percent per year for 1341 01:34:17,159 --> 01:34:20,760 a hundred years. That's what I want. There's also an interesting I saw 1342 01:34:20,840 --> 01:34:25,199 in the SMP five hundred. It closed beneath its fifty day moving average for 1343 01:34:25,239 --> 01:34:28,640 the first time in four months on Tuesday. This by itself isn't a reason 1344 01:34:28,680 --> 01:34:32,439 to turn farrish, because since nineteen ninety it's been higher a month later eight 1345 01:34:32,479 --> 01:34:35,840 out of nine times when it closed beneath the fifty day moving average. And 1346 01:34:35,920 --> 01:34:40,680 then also it's a year later, it's higher eight out of nine times on 1347 01:34:40,800 --> 01:34:44,239 average fourteen point one percent. One more thing I wanted to get and we're 1348 01:34:44,279 --> 01:34:47,079 running time here. Johnson and Johnson. Anyone who has Johnson and Johnson has 1349 01:34:47,119 --> 01:34:53,199 been getting an offer in the mail to switch over to ken View. That's 1350 01:34:53,239 --> 01:34:57,199 not Barbie's ken okay, It's ken View is the name of the company. 1351 01:34:57,560 --> 01:35:01,920 It's the spinoff of Johnson and Johnson's Summer Health. What they're doing in order 1352 01:35:02,000 --> 01:35:06,079 to try to entice you to switch your Johnson and Johnson stock to ken View 1353 01:35:06,479 --> 01:35:11,119 is they're giving you a seven percent discount. What they're not telling you is 1354 01:35:11,159 --> 01:35:15,079 the sheriffs have dropped eighteen percent since they came out. Spinoffs have not done 1355 01:35:15,119 --> 01:35:23,000 well lately. I remember IBM's Kendrell and AT and T's Warner Brothers discover both 1356 01:35:23,000 --> 01:35:27,760 of them down more than fifty percent. Do not swap your Johnson and Johnson 1357 01:35:27,960 --> 01:35:30,119 for ken View. Yeah. And a big thing with that too, is 1358 01:35:30,239 --> 01:35:34,560 that that TALC litigation going on Johnson Johnson took over the US and Canada and 1359 01:35:34,680 --> 01:35:36,640 left Kenvy to deal with the rest of the world. So you don't know 1360 01:35:36,720 --> 01:35:40,960 how big that could end up being. So that's a big black swan event 1361 01:35:41,000 --> 01:35:43,560 that could happen to ken View. And it's just not I mean, it's 1362 01:35:43,560 --> 01:35:45,520 the same kind of the same company of the tunnel. There's just a split 1363 01:35:45,560 --> 01:35:48,000 off of them. It is you know, you bought Johnson and Johnson for 1364 01:35:48,079 --> 01:35:55,159 a reason, and Johnson and Johnson is a high quality company with a long 1365 01:35:55,279 --> 01:35:59,840 term track record. Good management. To ken View is who knows what. 1366 01:36:00,119 --> 01:36:03,079 And recently those spinoffs have just not done well well. You think there's a 1367 01:36:03,119 --> 01:36:06,640 reason they did a spinoff because there was top they owned town bandaids enlistering. 1368 01:36:06,800 --> 01:36:10,119 That can be company. That's the main thing. So you got to think 1369 01:36:10,119 --> 01:36:12,720 there's a reason behind the scenes as to why there was a spinoff. But 1370 01:36:12,800 --> 01:36:15,359 we are coming up to the end of the show. There's a good show. 1371 01:36:15,680 --> 01:36:17,560 And if any of this downturn in the market makes you nervous or anything, 1372 01:36:17,800 --> 01:36:20,880 call us. Let's come in, do a financial plan, figure out 1373 01:36:20,920 --> 01:36:25,640 your risk tolerance and figure out where you are. If you're unsettled with anything, 1374 01:36:25,680 --> 01:36:28,720 if you just want to do a portfolio review, whatever it is. 1375 01:36:28,840 --> 01:36:30,279 But at the end of the day, we all want to be happy, 1376 01:36:30,720 --> 01:36:32,680 we all want to be healthy, and at the end of the day, 1377 01:36:32,720 --> 01:36:35,880 we all want to be profitable. Say it's all