Fiscal Insights: Employee Credits, Fed Policies, and the Art of Money Management

WEBVTT

1
00:00:02.919 --> 00:00:06.280
Good morning everybody. This is Dean
Greenberg. This is Sunday morning, eight

2
00:00:06.320 --> 00:00:11.240
o'clock and it will be the Money
Matter Show. We're gonna bring to you

3
00:00:11.279 --> 00:00:14.160
for the next two hours, insight
to what's going on in the markets,

4
00:00:14.599 --> 00:00:19.920
some ideas, some strategies, and
answer some questions that we got for the

5
00:00:19.960 --> 00:00:24.160
emails this week. I hope you
enjoy it because we're ready to bring it

6
00:00:24.199 --> 00:00:29.480
to you Moneymatter Show. Here we
go. Hey, this week, another

7
00:00:29.679 --> 00:00:33.240
flat week in the markets. Kind
of felt a little bit like they want

8
00:00:33.320 --> 00:00:36.439
to turn over a little bit right
now. The S and P was down

9
00:00:36.479 --> 00:00:40.560
point one percent and NAZAK was down
a little over half a percent. The

10
00:00:40.640 --> 00:00:45.159
rest of the small caps were down
two and a half and the SMP equal

11
00:00:45.200 --> 00:00:49.880
weighted was down about one percent.
For the month, the s and P

12
00:00:50.000 --> 00:00:54.600
still up about a half a percent
and Nazac's down about one percent. And

13
00:00:54.679 --> 00:00:58.600
for the year, s and P
still up Sevennazdac's up six, and the

14
00:00:58.679 --> 00:01:03.679
dial's only up two. And the
wrestle, not the rustle, the SMP

15
00:01:03.880 --> 00:01:07.920
equal weight it is up about four. So where do we go from here?

16
00:01:07.120 --> 00:01:10.200
I mean, you get a lot
of questions, a lot of calls.

17
00:01:10.959 --> 00:01:14.079
I mean, uh, you know, everything from I'm so scared about

18
00:01:14.079 --> 00:01:19.959
this market to where's a good where
we're gonna go? Should we be buyers?

19
00:01:19.519 --> 00:01:25.560
And everything in between. There's no
surprise for us to tell you that

20
00:01:25.599 --> 00:01:30.079
we've been cautious but obviously making some
money when the market's arising. We're in

21
00:01:30.159 --> 00:01:34.680
the right areas. We try to
be in the right areas. Balance portfolios

22
00:01:34.719 --> 00:01:38.920
have good, good bond ladders right
now with government bonds, corp good corporate

23
00:01:38.959 --> 00:01:45.760
bonds. So the balanced approach is
the best approach right now. Do I

24
00:01:45.760 --> 00:01:49.719
think there's gonna be a crash?
You know, I don't see the signs

25
00:01:49.719 --> 00:01:53.640
of it right now, and you
don't ever really see the science if you

26
00:01:53.799 --> 00:01:57.159
if you really are going to be
honest, because what happens is a black

27
00:01:57.159 --> 00:02:00.000
swan event comes and boom it's there. But it all always happens with the

28
00:02:00.000 --> 00:02:06.760
federal reserve. The federal reserve is
what creates the money supply that's out there.

29
00:02:06.840 --> 00:02:10.400
It creates how much liquidity we have. And when not liquidity tightens up,

30
00:02:10.439 --> 00:02:15.080
that's when we always have problems with
banks and everything else. When we

31
00:02:15.199 --> 00:02:22.960
have events that hurt our economics and
our businesses and just the overall economy.

32
00:02:23.479 --> 00:02:30.520
That's what destroys the liquidity, which
then creates a scenario, as you know,

33
00:02:30.599 --> 00:02:34.479
everyone wants to leave the party at
the same time. I don't see

34
00:02:34.520 --> 00:02:38.520
that happening this year because it is
a election year. I see people like

35
00:02:38.599 --> 00:02:44.159
Janet yelling and all trying to keep
the bided in as president. And let's

36
00:02:44.159 --> 00:02:47.039
face it, the only thing he's
got going right now is the economy moving

37
00:02:47.400 --> 00:02:53.719
supposedly in the right direction, even
though it's kind of false pretense, but

38
00:02:53.800 --> 00:02:57.719
he does have a market making new
all time highs. So people with money

39
00:02:58.400 --> 00:03:04.879
and people with forward K plan and
people that look towards retirement kind of okay

40
00:03:04.919 --> 00:03:08.039
with that. What they're not okay
with is prices being as high as they

41
00:03:08.080 --> 00:03:14.639
are. Inflation was another problem this
week. You saw the CPI PPI numbers

42
00:03:14.680 --> 00:03:21.159
coming back and telling you that inflation
is more sticky than what they're telling us.

43
00:03:21.360 --> 00:03:23.719
I've we've on this show and you
can go back and listen. I've

44
00:03:23.719 --> 00:03:30.400
said I don't see how they lower
interest rates at this time. I still

45
00:03:30.439 --> 00:03:35.319
don't see how they lower interest rates
in the face of the CPI and PPI

46
00:03:35.439 --> 00:03:39.520
number. The only way they're going
to lower interest rates on a legitimate basis

47
00:03:40.919 --> 00:03:46.719
would be, what if the economy
was faltering, if all of a sudden

48
00:03:46.719 --> 00:03:49.840
we had a liquidity crisis, All
of a sudden, there's a black Swan

49
00:03:49.919 --> 00:03:55.360
event. All of a sudden,
companies aren't making money, are being squeezed

50
00:03:55.360 --> 00:04:00.000
because we're in a recession, because
people aren't spending money. Now that can

51
00:04:00.039 --> 00:04:05.159
come. I think it's next year. I see credit card balances increasing,

52
00:04:05.199 --> 00:04:12.000
I see delinquencies increasing. I see
interest rates. Higher interest rates hurt people

53
00:04:12.080 --> 00:04:16.480
when they rise. Most interest rates
are adjustable, not so much of mortgages,

54
00:04:16.519 --> 00:04:20.839
but those are high right now.
But on credit cards and loans,

55
00:04:21.720 --> 00:04:31.000
a lot of people have adjustable mortgages. Businesses are almost always adjustable loans.

56
00:04:32.000 --> 00:04:39.759
So there's a problem there. Our
own debt that keeps increasing is costing us

57
00:04:39.759 --> 00:04:45.000
so much more money right now because
of the of inflation. And then you

58
00:04:45.360 --> 00:04:49.480
and then they just try to tell
us over and over again, well,

59
00:04:49.480 --> 00:04:57.360
Biden's bringing inflation down, Biden's increased
is increasing wages. Biden is going ahead

60
00:04:57.439 --> 00:05:03.759
and working on the border. It's
like, who believes this? And then

61
00:05:03.759 --> 00:05:12.759
I realize a lot of people,
unfortunately, a lot of people just listen

62
00:05:12.879 --> 00:05:19.519
to the snippets of the pundits that
they want to listen to who gave them

63
00:05:19.560 --> 00:05:23.000
the news, and all they have
to do is keep lying about it.

64
00:05:25.000 --> 00:05:31.519
There is no way middle class law
and the lower income families are not struggling.

65
00:05:31.639 --> 00:05:38.079
They are all struggling because even though
the wages might have increased, the

66
00:05:38.079 --> 00:05:45.439
the the amount that they have to
pay for real items has not increased it

67
00:05:45.519 --> 00:05:48.040
the same rate. You can.
You can have President Biden up there all

68
00:05:48.120 --> 00:05:55.839
day long telling you, well,
wages have increased more than prices. Not

69
00:05:56.000 --> 00:06:04.439
for the average person. They are
struggling, and that is why savings has

70
00:06:04.560 --> 00:06:14.399
decreased. Credit card balances have increased
because the interest rate that they're paying is

71
00:06:14.600 --> 00:06:19.639
extremely high. And I promise you
people aren't making twenty twenty five thirty percent

72
00:06:19.759 --> 00:06:26.360
more on wages that are paying those
credit cards off. And that's how much

73
00:06:26.399 --> 00:06:32.040
credit cards are average is about twenty
five percent for the average American person that

74
00:06:32.079 --> 00:06:36.680
doesn't pay it off month to month, and that eats them alive. So

75
00:06:36.680 --> 00:06:41.040
we're going to get into all that
today and talk about where this is going.

76
00:06:41.040 --> 00:06:43.759
In a second. I gotta go
ahead and tell you that this show

77
00:06:43.800 --> 00:06:46.600
is brought to you by Greenberg Financial
Group. Greenberg Financial Group is both the

78
00:06:46.639 --> 00:06:51.439
registered investment advisory and a broken dealer
registered with the SEC. Members of FINRAM,

79
00:06:51.480 --> 00:06:57.160
members of SIPIIC. We talk a
lot about product strategies, ideas,

80
00:06:57.319 --> 00:07:02.839
especially ideas everything has a rare,
everything has a risk. Please understand what

81
00:07:02.959 --> 00:07:08.399
your risk tolerance is. Understand what
the risk of the investment is. Understand

82
00:07:08.439 --> 00:07:13.360
how much of that risk you can
take, and where it fits in with

83
00:07:13.480 --> 00:07:16.839
your goals and your needs. We
try to do that for everybody. Obviously

84
00:07:16.920 --> 00:07:20.360
a lot of people try to do
that for a lot of people, but

85
00:07:20.360 --> 00:07:24.040
there's a lot of people out there
that just want to sell your product.

86
00:07:24.199 --> 00:07:30.319
Be careful. I can't emphasize that
enough. Be careful. You hear it

87
00:07:30.360 --> 00:07:35.399
all. And I'm going to talk
about annuities later on in the show today.

88
00:07:36.759 --> 00:07:44.480
Annuities are okay in certain situations.
They're not the end all for everybody.

89
00:07:44.519 --> 00:07:46.879
Just because you're retiring doesn't mean you
need to put your money in annuities

90
00:07:46.879 --> 00:07:51.839
and get a guaranteed income unless you
know every rule, every idea. You

91
00:07:51.920 --> 00:07:56.000
have to read that fine print,
and you don't understand the fine print.

92
00:07:56.079 --> 00:08:00.000
Ninety eight percent of people do not
understand the fine print and do not under

93
00:08:00.160 --> 00:08:05.959
stand how annuities really work. Most
people are disappointed. Some every once in

94
00:08:05.040 --> 00:08:11.160
a while people are not disappointed.
The guaranteed income is the one thing that

95
00:08:11.319 --> 00:08:16.680
is worth it, but remember that
also could hurt your principle. A big

96
00:08:16.720 --> 00:08:22.800
thing I'm hearing a lot lately is
about the lurps, the life insurance policies

97
00:08:22.839 --> 00:08:28.120
that you can take money off and
borrow against it tax free, and then

98
00:08:28.160 --> 00:08:31.600
when you die, the life insurance
pays off the loan and it's all tax

99
00:08:31.639 --> 00:08:37.759
free. And that's wonderful except for
when it doesn't work. And you got

100
00:08:37.799 --> 00:08:41.600
to pay attention to what worst case
scenarios are when things don't work, because

101
00:08:41.600 --> 00:08:48.080
the person that's going to suffer is
you. The big commissions on annuities and

102
00:08:48.159 --> 00:08:54.000
lurps come up front. The person
that suffer is you. What you want

103
00:08:54.080 --> 00:08:58.000
to do is be with a financial
advisor, somebody that's going to do a

104
00:08:58.039 --> 00:09:01.399
plan for you, a real plan
for you, and not just turn around

105
00:09:01.399 --> 00:09:05.679
and sell you a product, an
annuity, your life insurance policy. There

106
00:09:05.679 --> 00:09:13.039
are other ways you can save on
taxes. Because when things don't work out,

107
00:09:13.080 --> 00:09:16.759
there's a problem, all right,
things are a problem. Be careful

108
00:09:16.759 --> 00:09:22.559
the way people advertise I hear a
lot of different advertisements out there. I

109
00:09:22.639 --> 00:09:26.320
hear a lot of different guarantees out
there. I hear a lot of bonuses

110
00:09:26.320 --> 00:09:31.200
out there. Be careful of all
of that. Well, you navigate your

111
00:09:31.240 --> 00:09:39.440
own plan. You're smart, you
know what common sense is, all right,

112
00:09:39.919 --> 00:09:43.559
and if you feel pressure, walk
away, walk away. This is

113
00:09:43.600 --> 00:09:48.240
a relationship building thing. This is
what you're looking for is to build a

114
00:09:48.279 --> 00:09:52.720
relationship with a financial advisor on all
aspects of your life. You should be

115
00:09:52.720 --> 00:09:56.120
able to go to them and say
should I at least or buy a car,

116
00:09:56.440 --> 00:09:58.679
even though they don't get paid for
it. They should be able to

117
00:09:58.720 --> 00:10:01.279
try to help you out with because
they have that financial plan where it fits

118
00:10:01.320 --> 00:10:07.679
in best. They should be able
to help you on what kind offications you

119
00:10:07.679 --> 00:10:09.440
can afford, Where do you want
to go, what do you want to

120
00:10:09.480 --> 00:10:13.600
do, fitting in with the budgets, making sure your budgets are there,

121
00:10:13.639 --> 00:10:18.600
talking to you, meeting with you. That's what advisors do. We'll financial

122
00:10:18.679 --> 00:10:24.679
advisors build a relationship with their clients. Then they either hand off the money

123
00:10:24.879 --> 00:10:30.639
or in our case, we manage
it ourselves. We choose to do that

124
00:10:31.080 --> 00:10:37.559
because we will be accountable for what
we're buying and selling according to what you

125
00:10:37.720 --> 00:10:45.279
needs and what your goals are,
and we can change quickly and we com

126
00:10:45.360 --> 00:10:50.600
mitigate risk quickly if the need is
to do that caution. That's where we

127
00:10:50.639 --> 00:10:54.519
are right now, cautious. We
have a higher amount of money and money

128
00:10:54.600 --> 00:10:58.080
markets right now because they're paying good
money. Why take the risk when we've

129
00:10:58.159 --> 00:11:05.720
rallied so much, you know,
ETFs in certain areas cut back, allocate,

130
00:11:05.919 --> 00:11:09.200
and we've had this big run up. So now we're readjusting, re

131
00:11:09.720 --> 00:11:16.879
trimming some positions, raising cash and
looking for opportunities. There's always opportunities.

132
00:11:16.639 --> 00:11:22.639
We talk about that all the time. The most recently over the last four

133
00:11:22.720 --> 00:11:28.399
months or so, there was an
opportunity in Target. I had got down,

134
00:11:28.960 --> 00:11:31.519
you know, between one ten and
one twenty five is so goodbye.

135
00:11:31.879 --> 00:11:37.080
Rallied all the way up to over
one forty fifty. Boeing a couple of

136
00:11:37.159 --> 00:11:39.799
years ago is down to around one
hundred, rallied to two fifty. It's

137
00:11:39.840 --> 00:11:46.440
coming back down again because of problems. That could be a possible opportunity down

138
00:11:46.440 --> 00:11:52.039
the road here Disney. Nobody wanted
Disney, so I got down in the

139
00:11:52.080 --> 00:11:54.519
seventies. Not where is it one
one oh five, one ten, Somewhere

140
00:11:54.519 --> 00:12:01.200
in there Okay, you've got you
got rate the on right in our backyard

141
00:12:01.840 --> 00:12:07.039
got down to the low seventies.
Now it's over ninety. Problems arising good

142
00:12:07.159 --> 00:12:11.159
quality companies, they get there,
they fix them, and you move forward

143
00:12:11.159 --> 00:12:13.759
and then it's there. So right
now, the way I look at the

144
00:12:13.799 --> 00:12:18.679
markets, I look for opportunities,
but I don't mind having a lot of

145
00:12:18.679 --> 00:12:22.679
cash. I don't mind having a
little mitigation of risk on right now.

146
00:12:22.039 --> 00:12:24.480
But the way I like to do
it is to be able to have cash

147
00:12:24.559 --> 00:12:28.720
right now. We have a little
bit of a hedge on with the inverse

148
00:12:28.759 --> 00:12:33.279
funds, but other than that cash
and getting some bonds, I'm very comfortable.

149
00:12:35.039 --> 00:12:39.039
I don't know when the market's going
to fall, but I don't think

150
00:12:39.080 --> 00:12:41.879
it's going to fall big right now. But even if you get a ten

151
00:12:41.960 --> 00:12:46.120
or twelve or fifteen percent moved down
between now and say the election, probably

152
00:12:46.159 --> 00:12:50.600
is going to be a very good
buying opportunity. Look for quality stocks that

153
00:12:50.720 --> 00:12:56.559
fall back to support levels, the
little ones that money will flow back into,

154
00:12:56.639 --> 00:13:01.080
the fast money, the strong money, and the institution money will flow

155
00:13:01.159 --> 00:13:07.320
back into the stocks that are good
quality stocks. Is remember, institutions always

156
00:13:07.360 --> 00:13:11.159
have more money coming to them to
for one K plans and all mutual funds

157
00:13:11.200 --> 00:13:15.279
have money coming to them when they
have to liquid date. That makes the

158
00:13:15.320 --> 00:13:18.840
markets go down fast and furious,
and that's why once it stops, the

159
00:13:18.960 --> 00:13:24.559
sellers are gone and now people looking
to buy. That's when you step up

160
00:13:24.559 --> 00:13:28.720
and buy before that way, that
avalanche of buying comes back in and because

161
00:13:28.759 --> 00:13:31.480
when they stop putting money back in, they have to buy again. You

162
00:13:31.559 --> 00:13:35.200
have to have a feel for that. You ever notice when the market's fall,

163
00:13:35.240 --> 00:13:41.600
they go quick, but when they
go higher, once the money stops,

164
00:13:41.600 --> 00:13:43.679
it's there because who's going to keep
giving money? The first four months

165
00:13:43.720 --> 00:13:48.279
of the year usually good because guess
what, it's a whole new bunch of

166
00:13:48.320 --> 00:13:52.360
new money coming in from pensions,
from four one K plans to bonuses,

167
00:13:52.919 --> 00:13:58.559
you name it. It comes back
in the markets. So there's abundance of

168
00:13:58.600 --> 00:14:01.039
cash that looks to buy. As
the market goes higher, people get scared

169
00:14:01.080 --> 00:14:05.480
they want to put more money in. That's the scenario we're in. That's

170
00:14:05.519 --> 00:14:09.919
what forced those seven tech stocks up. But now we're getting a little bit

171
00:14:09.919 --> 00:14:13.559
more of a broader, a broader
sense of what's going on in the market.

172
00:14:13.039 --> 00:14:20.200
More stocks are doing better and they
look like there's opportunities. Companies are

173
00:14:20.240 --> 00:14:24.279
coming around. Old companies are starting
to look and I see accumulation in them.

174
00:14:24.759 --> 00:14:28.919
Okay, you know, I don't
know if IBM or Intel fits in

175
00:14:28.919 --> 00:14:33.039
with your portfolio for not managing it, but those are good quality companies that

176
00:14:33.120 --> 00:14:37.600
haven't done much over time, but
are starting to look good again a little

177
00:14:37.600 --> 00:14:43.440
bit. You know, look at
the financials, look at the money accumulations.

178
00:14:43.080 --> 00:14:48.320
There's opportunities to start maybe small positions
if that's what you're looking for.

179
00:14:48.480 --> 00:14:54.720
Or look for the ets. Okay
that those have those kind of stocks into

180
00:14:54.759 --> 00:14:58.840
them. It gives you a little
bit more allocation and a little bit less

181
00:14:58.919 --> 00:15:01.200
risk. There's a lot of things
to do, but it has to be

182
00:15:01.279 --> 00:15:03.759
in there. That's why people say, Okay, you have this cash,

183
00:15:03.759 --> 00:15:07.759
what are you gonna do? I'm
always looking for things, Okay, I'm

184
00:15:07.799 --> 00:15:11.360
always looking for things. Looks like
the biotech industry is heating up again.

185
00:15:11.440 --> 00:15:16.840
It's done well. That we talked
about the home builders of a couple of

186
00:15:16.840 --> 00:15:20.600
months ago. They were making all
time new highs. Here the ETF.

187
00:15:22.360 --> 00:15:28.039
There's opportunities. So now we're here. Caution, whatever that means to you

188
00:15:28.480 --> 00:15:31.080
is what you have to do.
It don't go moody what everybody else says.

189
00:15:31.399 --> 00:15:33.399
I know what it means to me, and I know how to do

190
00:15:33.480 --> 00:15:39.960
it from here. Okay, but
you need to understand it also cause means

191
00:15:41.000 --> 00:15:46.320
having less at risk, having more
in cash, looking for opportunities, hedging

192
00:15:46.399 --> 00:15:50.279
accounts, selling calls, buy and
puts, you name it. There's a

193
00:15:50.320 --> 00:15:54.440
whole bunch of different ways you can
do it. If you don't care about

194
00:15:54.480 --> 00:16:00.000
any of that, then just going
to one of the one of the discom

195
00:16:00.039 --> 00:16:03.159
brokes are and buy indexes and't just
hold them. It's gonna go up,

196
00:16:03.200 --> 00:16:07.639
it's gonna go down. I know
most people don't even want to hear that

197
00:16:07.639 --> 00:16:11.399
anymore. Oh, just hold through
it. I hate that. Why do

198
00:16:11.440 --> 00:16:14.679
you want to pay somebody something if
they're just gonna say, oh, the

199
00:16:14.720 --> 00:16:17.480
markets go up and then they go
down and then they go back up again.

200
00:16:17.759 --> 00:16:21.639
You have to take your age into
consideration. That's easy to say when

201
00:16:21.639 --> 00:16:25.000
you're thirty and forty and even fifty
years old, but you're still getting in

202
00:16:25.000 --> 00:16:30.200
your sixty seventy eighties. We don't
think that way anymore. We think our

203
00:16:30.200 --> 00:16:34.039
time frame is less. Yes,
we want to take advantage of being more

204
00:16:34.080 --> 00:16:37.519
aggressive in our risk side when the
markets are really going down. But when

205
00:16:37.519 --> 00:16:41.679
the markets are really going up and
there's a lot of things going on that

206
00:16:41.720 --> 00:16:47.960
you're not happy with, why expose
yourself to so much risk? And so

207
00:16:48.000 --> 00:16:49.039
when people say, oh, don't
worry, it's just gonna go down there,

208
00:16:49.039 --> 00:16:52.440
it's gonna come back up, you
don't want that. How are you

209
00:16:52.440 --> 00:16:55.279
gonna mitigate risk? If you're cautioned? What are you gonna do about it?

210
00:16:55.320 --> 00:16:57.000
If you're a little bit cautious.
There's a hundred things out there of

211
00:16:57.039 --> 00:17:00.080
why you should be a little bit
cautious when it does go down, and

212
00:17:00.159 --> 00:17:03.440
it will go down, and we
all know it's gonna go down it sometimes

213
00:17:03.680 --> 00:17:10.319
maybe it's next year, maybe it's
years from now, who knows. Evaluations

214
00:17:10.359 --> 00:17:12.920
mean a lot. And if you
can't look at that and say this stock

215
00:17:14.039 --> 00:17:18.200
is cheap, or this company that
the markets are cheap and the good quality

216
00:17:18.240 --> 00:17:22.279
turn companies to tweet are cheap,
then what are you gonna do? They

217
00:17:22.359 --> 00:17:26.480
keep talking about how the growth of
the economy, the growth of the economy,

218
00:17:26.599 --> 00:17:30.720
right, well, doesn't that mean
they aren't gonna come down to lower

219
00:17:30.720 --> 00:17:37.359
interest rates? Because the fast of
the economy, the overheated of the economy,

220
00:17:37.759 --> 00:17:41.279
the more inflation we have, they
are not gonna lower interest rates,

221
00:17:41.400 --> 00:17:45.720
and they do. It's a farce
because of all they're trying to do is

222
00:17:45.759 --> 00:17:51.240
sparked the UH, spark interest in
the markets to make people happy so they

223
00:17:51.240 --> 00:17:55.799
can go get people selling, get
and get capital gains so they have more

224
00:17:55.839 --> 00:18:02.599
money to give away because there's no
need to cut interest rates. Now.

225
00:18:03.039 --> 00:18:07.160
It's no different when the markets were
doing well and they kept low interestrates and

226
00:18:07.200 --> 00:18:11.240
we had nothing on interest rates,
We had more less than one percent in

227
00:18:11.240 --> 00:18:15.680
interest rates, and they wouldn't raise
them. They wouldn't raise interest rates going

228
00:18:15.680 --> 00:18:19.680
in the election because they did not
want to affect the election. Well,

229
00:18:19.680 --> 00:18:22.519
it's the same thing. Why would
they want to stimulate the economy and then

230
00:18:22.680 --> 00:18:26.720
hand it to who's ever in next
an economy that's overheated where they had to

231
00:18:26.920 --> 00:18:30.599
start coming back in and cut and
raising rates again and make the markets go

232
00:18:30.680 --> 00:18:41.640
down again. We hear about normalizing
rates, but they had to be taken

233
00:18:41.680 --> 00:18:45.599
into context. Normalizing rates. Yeah, we might have, you know,

234
00:18:45.680 --> 00:18:49.119
like mortgages for forever if you look
at them, sixty seven percent in the

235
00:18:49.160 --> 00:18:56.519
normal price. Okay, but that
was when our home prices were like two

236
00:18:56.519 --> 00:19:02.440
point fifty. Now the average home
price is what four hundred and let's face

237
00:19:02.440 --> 00:19:04.720
it, most homes that you that
most people want to look at and look

238
00:19:04.759 --> 00:19:11.200
at a seven fifty to a million
or more. That's the sweet spot.

239
00:19:12.240 --> 00:19:15.680
So now that's six and a half
or seven percent you get on a mortgage

240
00:19:15.880 --> 00:19:21.480
is so much more of a payment. And believe me, you have not

241
00:19:21.680 --> 00:19:25.799
right. Your wages have not gone
off that much in the last two years

242
00:19:25.920 --> 00:19:29.680
to afford the extra fifteen hundred two
thousand dollars it's going to cost you in

243
00:19:29.759 --> 00:19:33.960
a mortgage rather than having at two
and a half percent three percent, you

244
00:19:34.000 --> 00:19:38.920
have to pay four percent more on
a house that's million dollars is now forty

245
00:19:38.960 --> 00:19:45.960
thousand dollars more. Most people have
not had a forty thousand dollars raise.

246
00:19:47.079 --> 00:19:51.599
And even though they did, that's
a break even. That's a break even

247
00:19:51.799 --> 00:19:56.000
at best. So when you listen
to these pundits and they always trying to

248
00:19:56.000 --> 00:20:00.640
find out, tell you the reasons
why, wow them, it's going up

249
00:20:00.680 --> 00:20:03.680
even though interest rates, even though
we show hot inflation, Well they're wrong

250
00:20:03.799 --> 00:20:11.079
because gets what the markets turned over
right after that. Smart money, strong

251
00:20:11.160 --> 00:20:19.079
money, institutional money is selling in
to the retail investor. They're reducing their

252
00:20:19.079 --> 00:20:23.000
positions as the retail investors want to
buy these hot stocks and make them go

253
00:20:23.079 --> 00:20:33.079
higher. We have inflation, Our
wages have gone up. That's not going

254
00:20:33.160 --> 00:20:37.160
back. How are we going to
get inflation down to two percent? Then

255
00:20:37.200 --> 00:20:42.960
they say, well, having supply
chain problems. Whose fault is that?

256
00:20:45.359 --> 00:20:49.880
Because our Congress doesn't do anything but
man, when they want to move,

257
00:20:51.079 --> 00:20:56.039
they can move TikTok. They want
to ban cantire, they want to get

258
00:20:56.079 --> 00:21:06.640
rid of TikTok, and that thing
has flown through are Congress because they think

259
00:21:07.400 --> 00:21:11.119
by using more China, China,
China, people are gonna get on board

260
00:21:11.200 --> 00:21:18.400
with that and forget everything else.
Yet they forget we care about the damn

261
00:21:18.400 --> 00:21:22.640
border. And now everyone's caring about
the border because the border isn't just at

262
00:21:22.680 --> 00:21:30.759
the border anymore. The border is
in New York, New Jersey, Chicago,

263
00:21:32.200 --> 00:21:38.279
Philadelphia, they've all gone to the
Blue States and they are having a

264
00:21:38.319 --> 00:21:45.559
fit DC. So now the borders
becomes a problem. But the border wasn't

265
00:21:45.559 --> 00:21:49.079
a problem when it was just there. But they can't get their act together

266
00:21:49.480 --> 00:21:53.319
and do something that is good for
everybody, and they blame each other.

267
00:21:55.119 --> 00:21:56.720
If BIDA wanted to do something.
He should have shut down the wall two

268
00:21:56.759 --> 00:22:02.240
years ago. You didn't even have
to change anything of charl ideas proposals.

269
00:22:02.359 --> 00:22:06.480
But right away, within the first
month they got rid of everything Trump did

270
00:22:06.640 --> 00:22:08.160
and boom, the board has opened
up. And now they think they have

271
00:22:08.200 --> 00:22:11.519
all these people that can go vote. And I'll tell you right now,

272
00:22:12.359 --> 00:22:18.000
with that said, with the election
coming up, if the Republicans are not

273
00:22:18.400 --> 00:22:22.720
going to act be sparn enough and
understand what the Democrats are going to do,

274
00:22:23.960 --> 00:22:29.599
shame on them, because you know
there's going to be somehow, some

275
00:22:29.720 --> 00:22:34.519
way they're going to come up with
some idea to be able to get voting

276
00:22:34.519 --> 00:22:41.720
in They talk about suppression of voting. The illegal immigrants that come across the

277
00:22:41.759 --> 00:22:45.799
border that do not do it legally
are not allowed to vote period. They're

278
00:22:45.839 --> 00:22:52.079
not even allowed to be here.
But in certain areas, certain cities,

279
00:22:52.119 --> 00:22:57.839
they get to vote. What is
this? Why do they get to change

280
00:22:57.839 --> 00:23:03.559
the rules and the laws? Why
are they allowed to not have to stick

281
00:23:03.599 --> 00:23:06.000
to it? But boy, when
they want to stick it to the Republicans,

282
00:23:06.160 --> 00:23:10.799
they'll stick to the laws. We
got a serious problem that needs to

283
00:23:10.839 --> 00:23:17.960
be fixed. In the meantime,
with the higher interest rates where we are

284
00:23:18.119 --> 00:23:23.240
take advantage of it. It's nice
to see money markets over five percent.

285
00:23:23.279 --> 00:23:26.880
It's nice to see bonds paying over
five percent, four and a half pens

286
00:23:26.920 --> 00:23:32.200
a government bonds paying four and a
half percent. This is great stuff.

287
00:23:33.279 --> 00:23:37.079
Take advantage of it. But somehow, some way understand it. Sometime when

288
00:23:37.119 --> 00:23:38.680
interust rates come down, how are
you going to take advantage of that?

289
00:23:41.160 --> 00:23:45.480
You got to be understanding the income
market, the fixed income market, along

290
00:23:45.480 --> 00:23:49.920
with the equity markets. How the
allocation process everything. It's a portfolio,

291
00:23:51.519 --> 00:23:56.279
it's an allocation. It's a diversified
scenario. You need people working for you

292
00:23:56.400 --> 00:24:02.000
doing that. There's a lot of
proper there's a lot of opportunities, not

293
00:24:02.200 --> 00:24:04.079
just now, but over time.
You have to have a plan. We

294
00:24:04.240 --> 00:24:07.559
have a plan. You need to
have a plan. We can help you

295
00:24:07.640 --> 00:24:11.960
with that plan. You don't already
have a plan. To put it all

296
00:24:11.000 --> 00:24:15.400
together with your feelings, your ideas, your risk tolerance of what's going on,

297
00:24:15.880 --> 00:24:21.119
and try to merge your plan off
plan of what's going on. And

298
00:24:21.240 --> 00:24:23.279
we get we help each other.
We'll be right back at some moneymun of

299
00:24:23.359 --> 00:24:26.680
show. I am so happy you're
listening. Sa