Market Moves, Trump Case & Economic Data: What It Means for Your Finances

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Good morning everybody. It's eight o'clock
Sudden Day morning. This is the Money

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Matter Show with Dean Greenberg. Man. We have a lot of stuff to

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talk about. We know the highlight
of it all. I'm going to give

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you an opinion that's a little bit
different. Not gonna go into the details.

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We all know the details. I'm
just going to talk about the consequences

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that we could see from what's going
on this week with the Trump trial and

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what's going to happen to fall out
of the markets, you name it.

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But I'm telling you one thing to
get all the other stuff we can talk

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about. It is going to be
an incredible election because it is so different

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if Biden gets in, and it's
going to be so different if Trump gets

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in. I mean, I don't
see I've seen different opposites like this in

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a long time. And the one
thing I can tell you about what happened

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this week is it just put people
in their corners. It raised a level

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of disgust. It let raise the
level of that anxiety and stress on the

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American people to dig in and fight. And it's like, is that what

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we really want? Is that what
they wanted to do? Because at the

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end of the day. I don't
believe they're going to get the result,

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but I got some other ideas about
that. We'll talk about the markets first.

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Well, on the Friday, the
market did a nice reversal from being

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down about almost forty points on the
S ANDP to being up forty points on

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the SMP in the last hour,
which brought us back to still negative,

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but only down one percent on the
Dow, half a percent on the SMP,

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one percent on the Nasdaq, and
Wrestle two thousands about even. And

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then you saw the equal weighted also
even for the week. That puts US

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at the month. The Dow's up
two percent, the S and P's up

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almost five, navsdac's up almost seven, Russell two thousands up five, and

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the equal weighted S and P is
up two point nine. For the year.

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Now, the Dow's only up to
two two and a half, the

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S and P's up ten point seven, the Nasacs up eleven percent, the

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Wrestle two thousands up two point four, and the equal weighted is up five

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point one percent. So what do
you do. Well, here's the thing.

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We're looking for a pullback. I
was looking for about fifty two hundred

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or so, give it take about
ten points and if it held, I

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thought we could have a little bit
of a bounce, which is what we

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got. Now we're coming into June. It's an election year. June,

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July, and Augus are usually very
good. They usually average somewhere between six

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and eight percent. But we're already
up ten percent for the year. So

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do it is that gonna happen?
I don't know, but we did have

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a decline back, so you know, maybe we were up there fourteen percent.

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We came back to three percent four
percent. So now if we go

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up that eight percent will be up
twelve percent or so for the month.

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For those three months, so you
know what, look for the opportunities.

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We did take advantage of opportunities.
We brought some indexes. I'm buying indexes

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when the markets fall if I want
to be aggressively by two times of the

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index. I'm not trying to get
crazy and buy a whole bunch of different

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stocks because this is looking for a
two to three month trade. I want

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to be nimble. You want to
be nimble in this market because at any

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time you want to be able to
take a good chunk of money and say,

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hey, I'm out, but you
also want to be able to rally

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it to go from there. Remember
you hold on to your core positions.

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We will always hold the core position. But as we move up and if

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we can get to fifty four,
fifty five, fifty six hundred over the

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next couple of months, I will
trim back tremendously. I will be underinvested

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going into the election. If we
don't go up there, we go down

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first, and it's going to be
a different story I'll see at that time.

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But my game plan, and I
always have a game plan for the

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next three months, is to be
able to ride the wave. If we

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have it, we go to new
high, start mitigating risk, taking money

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off the table, and become actually
a little underinvested going into the election.

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If I give up some okay,
I'm okay with that. I'll put in

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the money market fund in my five
percent and wait to see what happens.

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Because the consequences of this election coming
up is going to be a tremendous effect

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on the economy. You have,
on one hand, going to have a

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Biden administration that wants more money,
more taxes. Even though they say they're

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gonna raise taxes, they're gonna find
ways to tax you, in ways to

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get money from you. One number
one is gonna be in January. They're

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gonna let the Trump tax proposal that
they put in what eight years ago,

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it's gonna go away, which means
all the tax brackets go up automatically.

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But the big one is for small
businesses, the small business to deduction.

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Okay, it's gonna go When that
goes away, that means small businesses that

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get k ones are going to be
higher, which means the individual is going

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to have to pay more taxes on
their tax return. Small businesses is going

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to get hurt in the face of
inflation. Inflation is not going away.

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You know they cheer on Friday because
the PCE was only a point three percent.

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It's still up zero point three percent. It's still inflationary. It still

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means we're going to have higher prices, higher prices. Can we afford higher

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prices? No, How are we
going to get prices down. There's only

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one way to get prices down,
and that's the increase of supply. So

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we can go ahead and have demand
stay the same. The way the people

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with the supply want to get rid
of what their inventory, they lower prices,

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prices come down. Is that gonna
happen with food? I don't think

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so. I know one thing it's
not gonna happen is with wages. Once

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you start giving on higher wages,
they do not go the other way.

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And in the same token of higher
wages, higher prices on everything we do

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cause food gas. You have the
administration wanting to go ahead and give away

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free money, free money to immigrants, free money to college students. Why

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in the world is he still on
this college student. I'm gonna pay off

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your student loan. How is that
effective in the future? How is that

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if you pay off the student loans, it only helps the people now that

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have been around. What about the
future? What about the ones going to

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school that still have to get a
loan? Because college tuition and pay is

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off the charts, off the charts. I looked at the tuition where I

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went to school. It was five
thousand dollars. When I went to school

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at Washington and League in Virginia,
it's sixty three thousand dollars just for tuition.

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Now everything all inclusive is eighty seven
ninety grand. And that's not any

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spending money, that's not your parents
coming down and seeing you for family day

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or parents weekend. It's not you
going away on on the spring breaks.

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You are talking one hundred hundred and
twenty five thousand dollars it will cost to

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go to school now at the same
place for the year, with spending money

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and vacations or whatever else you're gonna
do. That is insane. So you

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want to go ahead and pay off
these loans because you say it's too much,

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but you have not had one,
not one idea on how to protect

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it going forward. So it's like
paying off the credit card and then people

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coming back and spending on their credit
card again. So if you pay off

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student loans, what are the colleges
and the people now gonna do. You're

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gonna keep paying off student loans and
them why even pay for college. You

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need to get the universities involved in
lowering their prices. If that means cutting

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out the fat, cut out the
fat. If that means shutting down departments,

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shut down the departments. They've done
this in high school. They don't

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teach social studies, current events anymore, they don't teach geography anymore. These

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might be electives, but on the
court basis, kids aren't learning anything about

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the world. And I know that. You know why I know that because

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I coach, and you know I
coach, and I coach high school kids.

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In the end of the day,
we had a meeting. We kind

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of went out and I just asked
them, Hey, what do you guys

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know about the world. What's your
interpretation of the world. Not trying to

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influence them one way or the other, I said, have your ideas,

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tell me what you think. There
is no right or wrong, just have

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reasons of why you think. Do
you know. Out of nine of them

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nine not one knew about anything about
the Ukraine War. They knew nothing about

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the Israeli war. They knew nothing
about why there's people are protesting, and

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they knew nothing about the border.
Now one person could express anything about any

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of these major things that are going
wrong right now in the world. So

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what happens is they leave high school
and they go to college, and now

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they get indoctrinated where colleges want them. We're just mostly left. So that's

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why you have these idiots that don't
understand anything protesting against a terrorist group or

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mosas because they think it's cool and
the right thing to do. The problem

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is women have no clue what would
happen if they were in the Middle East.

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The same women, the same liberal
women, the blue haired women that

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are out there protesting, would be
shut up, stoned, put veils on

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and told themselves, if you open
your mouth, you're going to be arrested.

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Then you got the LGBTQ group,
who have a lot of freedoms in

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the United States, also going ahead
and protesting in the favor of Hamas.

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And they have no idea if all
of a sudden we rounded them up and

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put them right there with the Palestinians
or in the Middle East, anywhere,

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they would be hung in the town
square. They wouldn't be able to tell

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anybody, They wouldn't be able to
come out of any closet. They wouldn't

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have any freedoms. Women, gays, no freedoms. But yet they sit

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here in the United States protesting for
a group that hates them. That is

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the ignorance that we have and the
sheep that go to college and learning from

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the people that are professors that are
infiltrating our country. But it's hard to

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tell people that a're young because they
don't know. They don't realize it until

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they start realizing once you're in the
real world. Wait a second, this

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makes no sense. But in the
meantime, I'll pay your education, I'll

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pay you off your loans. I'll
do this give me your votes. Which

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brings us to the biggest sham trial
I have ever saw in my life.

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Well, I'm not going to go
into all that. You've heard it a

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hundred times. What I'm going to
say is a little different, and it's

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scary. Just like in the last
election, the Republic, the Democrats had

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no reason to believe that they were
going to lose the election. They never

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even talked about it because they knew
in their back pocket they had it done

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right. They were going to be
able to get the votes they needed,

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no matter how it came out,
to make sure that they won. Now,

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the same feeling I got about this
trial, the same feeling. Nobody

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was really worried that they were going
to lose. In fact, the word

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started going, they're gonna win.
They're gonna win. They're gonna win.

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They have that. They have that
on what nobody knew anything. You listen

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to all the attorneys and everybody else. That's even Democratic attorneys could not believe

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this was brought the trial. But
it didn't stop them believing they were gonna

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win because there was a setup.
They had it done from the beginning.

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We know Alvin Bragg said he was
gonna run on that. He got the

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people in place in New York between
the jury and the judge to be able

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to do it because they knew it
didn't matter. Once you win, they're

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going to go ahead and appeal.
They're probably gonna get off. But the

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idea was if we get what we
want, everybody could go ahead and talk

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about he's a criminal and I can't
believe you're gonna put a criminal on this

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president. We didn't do it.
You did it. The left did it.

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Because when people are starting to say
this and talking to me about I

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try to talk to them and say, are you kidding me? Do you

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not think that the Clinton did things? Biden has done stuff. You don't

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think that every one of these politicians
become investigated, we would have no politicians.

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The truth of the matter is we
have a crooked government and we've had

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it for a long time, and
they don't realize that people are starting to

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rise up against it. The people
are starting to get upset and they're starting

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to say, hey, enough is
enough is enough. You don't even have

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to like Trump to believe what's going
on. And the same thing is scaring

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me about the next election because at
the end of the day, other than

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a few people here and there are
worried about it, some of the commentators

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because of the polls, you don't
see any of the real Democrats, the

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real the Democratic Party worried about them
winning or not. And they got They

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got a man walking dead going ahead
to the trying to get the Even Democrats

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don't like Biden, but for some
reason and the thing they're going to still

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have the power. This is where
the problem lies. The Democrats understand the

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system better than the Republicans, and
not only that, they're vicious, much

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more vicious than the Republicans. We
all know. When Trim became president in

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twenty sixteen, he could have easily
went after Hillary Clinton for having the servers

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in a house, which is against
a federal law, and everything else that

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they did. They could easily have
gone after Hillary Clinton for all the falsifications

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they made about Russia that people still
believe he's tied in with Russia. It's

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been proven that it hasn't, but
yet they do the investigations and everything else,

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and they sit back and say,
well, she wasn't guilty because she

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sat there. They grilleded for eight
hours and didn't find anything. You do

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know that he could have gotten her, gotten a jury to go ahead and

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absolutely nailed it to the wall.
But he chose to move on. And

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that's what Republicans do. But they
better figure out who is that bulldog,

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who is the one that's gonna stop
it and say enough is enough and start

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fighting back the same way they're fighting, because otherwise, you know what,

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the country as we know it,
the world as we know it, is

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gonna be done. You could say
all day long, Oh, you're gonna

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vote for a criminal, a convicted
felon. You're gonna do all this stuff.

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Don't even knows what the charges are. They can say that, and

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that's what they're gonna say. Aren't
you embarrassed to have a convicted felon?

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Is a president? What a way? A you know, a banana republic?

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That's they say. We say the
same thing, it's a banana republic,

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but the difference and says, it's
not Trump that increased the inflation,

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it's not Trump that increased the gas
prices. It's not Trump that started the

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war in Ukraine. It's not Trump
that started the war in Israel. The

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next war, you know, is
happening with China and Taiwan. And that

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will happen. If Biden stays in, prices will go up, the supply

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chain will get less because where they
go to Taiwan, you know what's gonna

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happen. It's gonna be a trade
war. No one's gonna want to do

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stuff, and it's gonna happen.
You have a guy attorney general in New

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York right that has to let people
off for punching elderly pop people, for

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beating the hell out of just normal
citizens, to smashing windows and stealing whatever

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they want from stores, to stealing
stuff from anyone they want to. Subway

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beatings off, remember they beat up
all those cops off. Don't hold them,

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don't put them in jail. And
the worst case is you had that

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homeless, radical, insane person on
the subway attacking people. A marine goes

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ahead and subdues them, and unfortunately
he died. And he is brought up

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on murder charges for helping the citizens
of New York on the subway when there

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was no cops because there's not enough
cops out there to do what they need

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to do, because they don't let
cops do what they need to do.

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Because cops are afraid that they do
what they need to do, they can

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get in trouble, be put in
jail, lose their pensions. That's the

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type of person you have in charge
of Attorney general. He goes after a

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person that falsified business records. We
still don't understand what wrote a check to

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a hooker, prostitute, porn star, whatever to keep it out of the

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news, which they all do.
Come on, we all know that the

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politicians a bunch of pigs, and
we all know that the Democrats and the

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Republicans both had flush funds to pay
off these hookers whores when they got in

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trouble with them. They did away
with that a few years ago. You

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remember there, that's flush fund they
had that they protect themselves. So the

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question always comes up, now,
what are we gonna do? Because the

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only person that will ever run to
be a person in politics, it's got

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to be an egotistic, narcissistic type
person that just believes everything they did in

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life was in one that will lie
about everything because there's not a normal human

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being that wants to step up and
be a politician, especially at the highest

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level of president, because now you
can go to jail for doing the same

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thing everybody else did and add minimal
thing. But you can kill someone,

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you can punch someone, you can
beat up the police, you can strangle

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people, you can do break into
businesses, you can steal stuff and get

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away with it. Think about that. Think about how bad this Alvin Bragg

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is. Not to mention he said
elect me, I'm gonna go after him.

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It's going to backfire. You watch
and see it is absolutely one percent

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a backfire. And the Republicans better
get ready to fight. I am sick

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and tired of them just taking the
punches and not fighting back. They need

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to step up and do their job. They know what the Democrats are doing.

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Either do the same thing or expose
them. We cannot lose this election.

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Taxes will go up, inflation will
come back, free money will be

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there, wars will break out,
the borders won't be shut, and we're

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going to be in a heap of
trouble. I talk to people about the

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borders all the time. The problem
is it's never affected them directly or their

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family directly for them to feel the
pain of what's going to happen. I

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tried to explain to these young kids
that weren't around in two thousand and one

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that we were infiltrated by Middle Eastern
is into our airplane flying, you know,

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becoming pilots training, and they got
jobs to be able to fly seven

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forty sevens. It was a plot
that was put in many many years beforehand

258
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and executed to a te to the
amazement of the world of running into the

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two iconic World Trade centers in New
York City and killing thousands of people,

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and then tried to go after the
Pentagon. They were going to go after

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the White House before it was taken
down. Think about that they didn't even

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understand because they don't teach history the
way they need it. And if you

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don't think that people are infiltrating our
borders right now and plotting for years of

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how they're going to infiltrate our system, use your imagination electric grids, a

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water supply, a transportation system,
they will create terror. And here's the

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thing, Ice can't get rid of
anybody. How many people do we catch

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that have already been thrown out of
the country that come back. How many

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people have committed and we let them
stay and now we want to give them

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jobs without vetting them. We don't
know anything because we can't because nobody comes

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up with a solution for anything anything. Come up with a solution, bude

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An administration. If you're gonna go
ahead and pay off loans, how we're

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gonna stop it in the future.
Come up with a solution of shutting down

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the border. And what are we
gonna do with everyone coming in? And

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what are we gonna do with everybody
here other than giving him the right to

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vote? What are we gonna do? It's a setup well allowing it to

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happen. And believe me, all
you have to do is think of the

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Roman Empire, the power England had
over everybody. Every empire goes down,

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and they've been around thousands and thousands
of years. We've been around two hundred

279
00:23:48.480 --> 00:23:52.319
and some odd years. Why can't
we fall. Also, that doesn't mean

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we all die, doesn't mean we
don't keep moving along, but we will

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be under other people's control of how
we grow and what we do in the

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freedoms we have. I'm not willing
to give it up. I hope you're

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not willing to give it up.
And I hope that right now everybody opens

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their mouth and says, I am
voting for Trump because I can't take what's

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00:24:11.720 --> 00:24:15.240
going on in this world no more. And the least he will try to

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00:24:15.279 --> 00:24:18.079
do something because he understands what it
is to be attacked. We'll be back.

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It's the Money Matter Show, and
we do appreciate you listening. Welcome

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00:24:22.440 --> 00:24:25.160
back, everybody, money out of
show. We got Dave Show with Dylan

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00:24:25.160 --> 00:24:30.079
Greenberg, Todd Glick and myself Dean
Greenberg here for the next hour and a

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00:24:30.119 --> 00:24:34.599
half or so to bring you a
lot of information. What an incredible week.

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You know, the doll was coming
into Friday, the doll was down

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almost a thousand points, and with
a half an hour left in the day

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on Friday, it was down another
what fifty points? D you watch your

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closure than I do? And it
just exploded. The SMP went down from

295
00:24:52.799 --> 00:24:56.200
being minus almost forty to up forty
two in the last hour and that was

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act. That was up ninety five
and then finished. I tried to that

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was up most of the day on
Friday, but the SMB was down as

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much as forty was it, yes, and it finished up forty and what

299
00:25:07.160 --> 00:25:11.400
an amazing last thirty minutes. I
mean all day, I was just I

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was brought back because the last thirty
minutes I didn't watch the market. Then

301
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I come back to it. Whoa, and it wasn't It wasn't just edging

302
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higher, it was exploding higher.
You know what that was short covering?

303
00:25:22.799 --> 00:25:26.880
Yeah, absolutely, Okay, that's
that when you see stuff like that happen

304
00:25:26.000 --> 00:25:30.440
mechanically, what it is is guys
was short, they saw it, They

305
00:25:30.440 --> 00:25:36.119
come and to they break above the
resistance. Boom, they all cover sends

306
00:25:36.119 --> 00:25:37.759
the market even higher. They go
home, they got their cash, They

307
00:25:37.799 --> 00:25:41.319
come back and ready for next week. Somebody listening for the first time being

308
00:25:41.319 --> 00:25:45.200
short covering is what shortcovering is.
When you're short the stock is you're betting

309
00:25:45.240 --> 00:25:48.119
on it to go and down.
You sold a stock you don't own right

310
00:25:48.200 --> 00:25:51.160
right, and then when they get
to certain prices the triggers you buy it

311
00:25:51.200 --> 00:25:55.240
back so you don't have a huge
loss. It's all computer ice trading because

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00:25:55.240 --> 00:25:57.000
when your shortest stock, when you
sold a stock you don't own, your

313
00:25:57.079 --> 00:26:04.000
lost potential is unlimited, unlimited.
If an example of that is that kind

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00:26:04.039 --> 00:26:08.480
of investment from that almost went under
back in for game stop. There's a

315
00:26:08.480 --> 00:26:11.960
short game stop, and then it
just exploded and it screwed them. So

316
00:26:12.079 --> 00:26:15.240
that's why they had to get Citadel. Oh yeah, it was a Citadel.

317
00:26:15.480 --> 00:26:21.319
Citadel had start with a two,
and his mentor was the owner of

318
00:26:21.720 --> 00:26:25.319
another firm that bailed them out.
Yeah, it's absolutely right when you see

319
00:26:25.400 --> 00:26:29.720
that type of an explosive move,
and there wasn't just creeping up. I

320
00:26:29.759 --> 00:26:33.920
mean it was jumping ten fifteen points
every few seconds. That's a short.

321
00:26:33.960 --> 00:26:38.480
That's a short, a panic.
People are panicking to buy because they want

322
00:26:38.519 --> 00:26:42.079
to mitigate their losses into the weekend. Right, which is interesting because we

323
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saw in the morning we got the
PC report that came out showed inflation year

324
00:26:48.799 --> 00:26:51.960
over year didn't move, but actually
month over month came in a little lower

325
00:26:52.000 --> 00:26:56.200
than expectations. So from an inflation
standpoint, it would have kind of said

326
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that markets should probably go higher.
So maybe that's why they were covering.

327
00:26:59.640 --> 00:27:03.119
Well, what happened was fifty two
hundred was support zone. Support zone in

328
00:27:03.160 --> 00:27:06.640
a hell. It tried to break
under, it couldn't, and then when

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00:27:06.640 --> 00:27:07.920
we reversed, some buying came in. When the buying came in, the

330
00:27:08.000 --> 00:27:14.119
shorts covered obviously, And you remember
this was all computerized. Yeah, most

331
00:27:14.119 --> 00:27:15.759
of the buying that quickly when it's
jumping like that, and they just boom

332
00:27:15.799 --> 00:27:19.079
boom boom, boom boom, market
order boom boom boom, and the guys

333
00:27:19.119 --> 00:27:22.240
on the mall on the floor just
say, yeah, give it to me,

334
00:27:22.319 --> 00:27:23.839
baby, I love it. Especially
when there's not a whole bunch of

335
00:27:23.920 --> 00:27:29.359
volume. His computerized system can really
take a hold of the influence. But

336
00:27:29.599 --> 00:27:33.160
you have to remember there's two days
a week that usually have reversals, Tuesdays

337
00:27:33.200 --> 00:27:36.960
and Fridays. If the market has
been rallying, rallying and rallying and it

338
00:27:37.039 --> 00:27:41.000
hits a resistance, it can reverse
on a Tuesday or Friday. Usually not.

339
00:27:41.440 --> 00:27:45.359
It seems like my years in the
business, that's it. So this

340
00:27:45.400 --> 00:27:48.000
morning we're down, down, down, down. We can't you know.

341
00:27:48.039 --> 00:27:49.279
We were up first, and we
reversed all the way down and got down

342
00:27:49.279 --> 00:27:52.880
to that fifty two hundred level and
we turned the one higher. Okay.

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00:27:52.960 --> 00:27:57.680
So I'm not the only one that
understands technical analysis, Okay, but it

344
00:27:57.759 --> 00:28:02.279
happens often enough. On a two
is it's got a Q a little name

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00:28:02.359 --> 00:28:04.720
right, turn around Tuesday, right, And obviously It happens a lot on

346
00:28:04.759 --> 00:28:10.480
Fridays two. If the markets are
getting killed and they turn around shorts cover.

347
00:28:10.599 --> 00:28:12.559
If the market's going way high,
what happens. People take profits,

348
00:28:14.200 --> 00:28:17.000
you know, because a lot of
what happened over the weekend. So that's

349
00:28:17.079 --> 00:28:19.759
just some mechanical things that I've learned
over the forty years of trading. Speaking

350
00:28:19.799 --> 00:28:25.319
of mechanical things, over forty years
of trading, we had a big event

351
00:28:25.400 --> 00:28:27.640
this past week, Dean. When
you and I were in the business for

352
00:28:27.759 --> 00:28:32.799
decades, it was trade date plus
three. You had three days to bring

353
00:28:32.839 --> 00:28:36.079
in your money if you bought something
plus five. At one time it was

354
00:28:36.200 --> 00:28:38.240
plus five. Going back and now
you know you're dating yourself what it was.

355
00:28:38.240 --> 00:28:42.119
It was plus five. Then it
went to plus three about twenty five

356
00:28:42.200 --> 00:28:47.799
years ago probably, and then in
twenty seventeen it went to trade day plus

357
00:28:47.839 --> 00:28:51.720
two as two days to either deliver
your certificate. We don't see many of

358
00:28:51.720 --> 00:28:56.160
those anymore, or bring in your
cash if you bought something that this week

359
00:28:56.240 --> 00:29:00.359
on Tuesday, that went to t
plus one. Well it's because everything's come

360
00:29:00.759 --> 00:29:07.000
so mechanical. Okay, that's true
to a technology. It used to be

361
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people have certificates, so they had
to get down, they had to give

362
00:29:08.400 --> 00:29:11.200
it to the office. The office
had to mark amand they had to send

363
00:29:11.240 --> 00:29:14.759
it to the main office. That's
why there was five days, you know,

364
00:29:14.799 --> 00:29:17.200
through the mail and stuff. Then
it got to t thwee because most

365
00:29:17.200 --> 00:29:19.359
of it was on hand. Now
you don't have any certificates. And if

366
00:29:19.359 --> 00:29:22.799
you're listening out there and you do
have certificates, have a safe depositive box

367
00:29:22.839 --> 00:29:29.240
full of certificates, please get them
in the hands of somebody before you move

368
00:29:29.279 --> 00:29:30.559
on. It's going to cost your
money a lot of places to do.

369
00:29:30.720 --> 00:29:36.960
Now your heirs would have to deal
with every single individual transfer agent for every

370
00:29:37.039 --> 00:29:41.480
single company. They'd have to provide
a death certificate, an affidavit a domicile.

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00:29:41.799 --> 00:29:45.079
It is a giant amount of work
for your heirs. If you have

372
00:29:45.119 --> 00:29:49.880
a safety positive box full of stock
certificates, please get them on deposit with

373
00:29:51.000 --> 00:29:53.559
some broker. Yeah, it makes
a lot of sense. And as we

374
00:29:53.559 --> 00:29:56.720
were saying throughout this week, a
lot of things were changing, a lot

375
00:29:56.720 --> 00:30:00.440
of things were moving. Inflation was
kind of the only economic report that really

376
00:30:00.480 --> 00:30:03.039
came out. What are some of
the economic reports we got coming out next

377
00:30:03.039 --> 00:30:07.440
week? Really, the only thing
next week is the employment report on Friday.

378
00:30:07.519 --> 00:30:10.519
It's almost like almost like next week's
June's. Well, the other thing

379
00:30:10.519 --> 00:30:14.160
that came about was the you know, the FED base books saying hey,

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we're not wait, you know,
we're not low and rage now and then

381
00:30:15.680 --> 00:30:18.400
all I had the talking heads came
out right, so that that had a

382
00:30:18.400 --> 00:30:22.839
lot to do with the markets not
going high for some reason. I don't

383
00:30:22.880 --> 00:30:26.440
know where they've gotten the fact that
they should raise lower rates because it's just

384
00:30:26.480 --> 00:30:30.960
not good for the markets right now. Now it would increase until we have

385
00:30:30.440 --> 00:30:36.079
a unison of the government and the
FED getting together say hey, we're not

386
00:30:36.119 --> 00:30:38.920
going to continue spending like we're doing. They can't lower weights. Tat said

387
00:30:40.000 --> 00:30:42.599
last week. The perfect scenario is
to believe that the rate cut is just

388
00:30:42.680 --> 00:30:47.400
around the corner, right right,
and if it just hangs there, doesn't

389
00:30:47.440 --> 00:30:49.880
happen, just hangs there, it's
really good. Well, we're just fine.

390
00:30:51.200 --> 00:30:56.160
Yeah that the PC never was good. The PC personal consumption Expenditure index,

391
00:30:56.240 --> 00:30:59.960
that's the Fed's favorite gage of inflation. But it's still showing inflation.

392
00:31:00.200 --> 00:31:03.359
It's show showing inflation, but it's
getting down near the fence target. Yeah,

393
00:31:03.400 --> 00:31:06.240
but two point eight percent from a
year like over the annualise. So

394
00:31:06.279 --> 00:31:08.359
that's almost there. They're want two
percent still, but it's getting there.

395
00:31:08.400 --> 00:31:11.680
I think. Also why their favorite
inflation is the PC is the PC always

396
00:31:11.680 --> 00:31:17.680
seems to be lower than the CPI
for whatever reason. It's it's interesting.

397
00:31:17.880 --> 00:31:22.359
Yeah, that's interesting. If the
problem, the problem that was pointed out

398
00:31:22.400 --> 00:31:26.440
on CNBC Friday morning was that it's
been two point eight percent now for four

399
00:31:26.519 --> 00:31:30.440
consecutive months. Okay, so we're
not making any progress. However, Todd,

400
00:31:30.480 --> 00:31:37.160
you pointed out as really significant economic
report that we got Thursday, pending

401
00:31:37.240 --> 00:31:40.480
home sales. Oh right, that's
huge. Almost forgot, that's huge.

402
00:31:40.559 --> 00:31:44.319
Yeah, it was. It was
a significant drop, one that we didn't

403
00:31:44.319 --> 00:31:48.359
really expect to see, seven point
seven percent drop in existing home sales across

404
00:31:48.519 --> 00:31:52.200
all regions. So is existing home
sales. For people who don't know what

405
00:31:52.200 --> 00:31:55.880
that means, it's saying, if
I have a home and I'm listing it

406
00:31:55.960 --> 00:31:59.400
for sale, I then said,
hey, I'm not getting my price I

407
00:31:59.440 --> 00:32:04.680
want, I have to lower my
price. Right, And so the CPI

408
00:32:04.799 --> 00:32:08.200
thirty five percent of the CPI is
shelter, what they call shelter, that's

409
00:32:08.240 --> 00:32:13.480
homes and apartments. And if you
were to get some relief in that area,

410
00:32:13.680 --> 00:32:16.359
we could be down to that two
percent inflation targeted about a month.

411
00:32:16.720 --> 00:32:21.799
However, the problem with shelter is
it's a lagging indicator. So for this

412
00:32:21.880 --> 00:32:23.640
to show up, it takes eighteen
months for it to show up in the

413
00:32:23.680 --> 00:32:28.640
CPI. Housing is a very lagging
indicator. Well, it is, but

414
00:32:28.640 --> 00:32:30.000
I don't think it would take eighteen
months. I would think that was some

415
00:32:30.039 --> 00:32:35.079
of the report in thirty to sixty
days. If you see home prices starting

416
00:32:35.119 --> 00:32:38.359
to drop, that's going to show
up anyway. It's the first it's the

417
00:32:38.400 --> 00:32:43.839
first sign of a crack, right, and it had just solid thirty five

418
00:32:43.880 --> 00:32:47.039
percent. That's not going to go
anywhere. So another status said over fifty

419
00:32:47.039 --> 00:32:51.799
percent of all home buyers have mortgage
rates lower than four percent. So if

420
00:32:51.799 --> 00:32:53.640
you are on that side of the
coin, how are you ever wanting to

421
00:32:53.680 --> 00:32:59.000
sell your home? Right? Because
it's you feel comfortable with what's going on

422
00:32:59.279 --> 00:33:01.359
in the economy of the world.
I mean, I know they keep telling

423
00:33:01.440 --> 00:33:06.279
us it's such a disconnect. Economy
is great, everything's great. Why don't

424
00:33:06.279 --> 00:33:08.559
people feel it? Because the truth
of the matter is when they go to

425
00:33:08.599 --> 00:33:13.359
the store, they go to the
gas tank, a gas pump, when

426
00:33:13.559 --> 00:33:16.240
they go traveling, when they get
inline tickets, they buy clothes, whatever

427
00:33:16.279 --> 00:33:22.279
they do is so much more than
whatever paycheck increased that they got, because

428
00:33:22.359 --> 00:33:24.759
no matter how well you're doing,
you're probably not doing as well as inflation.

429
00:33:25.240 --> 00:33:29.000
Right, And we talked about it, because it's more than just three

430
00:33:29.039 --> 00:33:31.839
percent. Oh yeah, okay,
it's more than three percent. Since twenty

431
00:33:31.920 --> 00:33:35.759
nineteen, the price of a big
Mac has gone up twenty one percent.

432
00:33:36.000 --> 00:33:37.640
Yeah, I think we all can
say that. You know, it's three

433
00:33:37.680 --> 00:33:39.519
percent for the average person, where
for some people it could be more like

434
00:33:39.559 --> 00:33:43.640
ten. For others it could be
twenty. And it depends on what you're

435
00:33:43.720 --> 00:33:45.599
using, what goods and services you
use. I like a big Mac from

436
00:33:45.640 --> 00:33:50.599
time to time. Twenty one percent. The real ability to know how much

437
00:33:50.640 --> 00:33:54.119
has gone up is you how to
paycheck. How many pennies were left over

438
00:33:54.240 --> 00:33:59.839
after you did everything during the month. Now there's no pennies left over and

439
00:34:00.160 --> 00:34:04.319
pulling out of savings to order to
pay your bills and not why people are

440
00:34:04.319 --> 00:34:08.239
feeling the crunch, not to mention
the stopping saving. That's scary. The

441
00:34:08.639 --> 00:34:14.000
government is getting us to the point
that people are gonna be poorer and poorer

442
00:34:14.039 --> 00:34:19.599
and poorer when they retire because they
cannot put the money away except the ones

443
00:34:19.639 --> 00:34:22.039
doing very well. Yeah, but
there's also that four one K thing where

444
00:34:22.039 --> 00:34:25.880
you're gonna have to contribute to a
four one K moving forward because those security

445
00:34:25.960 --> 00:34:30.280
is going down. So the government's
implementing that fact. So they're gonna have

446
00:34:30.320 --> 00:34:32.840
to do something regardless you think you're
broke, now stand by, I know

447
00:34:32.920 --> 00:34:36.440
they're gonna have They can't have the
option to put it in their four one

448
00:34:36.480 --> 00:34:37.840
K, They're gonna have to put
in their four one K. So that's

449
00:34:37.840 --> 00:34:40.480
gonna be a whole different things.
So they're put I don't know four is

450
00:34:40.679 --> 00:34:45.639
coming after. Any four on k's
that have been started after twenty twenty four

451
00:34:45.480 --> 00:34:49.920
have to be like this, Oh
yeah, after twenty Mandy Curry contributions.

452
00:34:50.000 --> 00:34:52.639
That's what I'm saying. So if
someone doesn't have it one do you no?

453
00:34:52.639 --> 00:34:55.719
No, your grandfather did in?
Does somebody have to put in if

454
00:34:55.760 --> 00:35:00.400
they don't have a full one K, they're gonna have to start one four

455
00:35:00.519 --> 00:35:02.480
K plans. If the four one
K was started after twenty twenty four,

456
00:35:02.639 --> 00:35:07.360
every employee has to contribute. It's
a mandatory. I'm saying that it's a

457
00:35:07.400 --> 00:35:09.440
four plan if they don't have a
full new employee here, Dad, if

458
00:35:09.480 --> 00:35:12.920
you get a new employee here,
they don't have they're not part of that

459
00:35:13.280 --> 00:35:15.800
because your four O on K was
already in a business does not have a

460
00:35:15.840 --> 00:35:17.519
full one K plan. Are they
mandated now to have a full one K

461
00:35:17.599 --> 00:35:20.920
plan? Not yet here in Arizona. That's what I'm saying. There are

462
00:35:21.039 --> 00:35:24.320
certain states where businesses are required to
have retirement plans, but Arizona it's only

463
00:35:24.360 --> 00:35:28.760
been recommended, it has not been
finalized. All right, Hey, thanks

464
00:35:28.760 --> 00:35:30.320
for listening. Guys. We've got
to take a short break. This is

465
00:35:30.320 --> 00:35:35.000
the Money Matter Show. You can
always go to a website we listen.

466
00:35:35.400 --> 00:35:39.000
Listen again, iHeartRadio, you name
it. We're there. Thanks for listening.

467
00:35:39.079 --> 00:35:42.519
We appreciate it. Oh, welcome
back everybody. This is the Money

468
00:35:42.519 --> 00:35:47.199
Matter Show. Dean Dave dealing in
Buddy Todd. We hear a lot about

469
00:35:47.239 --> 00:35:52.320
climate change. And I was my
wife and I took a little staycation down

470
00:35:52.360 --> 00:35:57.199
to two Bac Overmoral Day weekend.
And I'm sitting in the hotel room and

471
00:35:57.239 --> 00:36:01.920
she's showering or whatever, and the
the weather comes on and they're talking about

472
00:36:04.079 --> 00:36:07.000
the Memorial Day morning. What the
temperature called for a high temperature on a

473
00:36:07.039 --> 00:36:12.039
Memorial Day of around one hundred degrees
and what jumped out at me, This

474
00:36:12.119 --> 00:36:15.079
is for the climate change folks.
What jumped out at me was the all

475
00:36:15.159 --> 00:36:22.360
time high for Memorial Day is one
hundred and ten. That was set in

476
00:36:22.440 --> 00:36:28.360
nineteen oh eight. Nineteen eight eight, Okay, the hottest May Day in

477
00:36:28.559 --> 00:36:31.840
history. Same weather forecast one hundred
and eleven. So we won't ask me

478
00:36:31.840 --> 00:36:36.639
to deal with one hundred and eleven
today, which was set in nineteen ten.

479
00:36:37.880 --> 00:36:39.719
Ok So, nineteen oh eight it
was one hundred and ten, nineteen

480
00:36:40.519 --> 00:36:45.519
ten it was one hundred and eleven, and this year was one hundred.

481
00:36:45.679 --> 00:36:49.800
So it's kind of kind of interesting
things be getting that much warmer throughout the

482
00:36:49.880 --> 00:36:52.400
year. I guess we're working on
global cooling now. Yeah, it sounds

483
00:36:52.440 --> 00:36:55.199
like, hey, it went out
of global warming you know that. Yeah,

484
00:36:55.760 --> 00:36:59.199
yeah, because nobody could buy that. Well yeah, I think,

485
00:36:59.239 --> 00:37:01.559
oh they bought it. The same
people that think that, you know that

486
00:37:01.719 --> 00:37:05.800
was a fair trial. Well then
the beauty of climate change is is that

487
00:37:05.880 --> 00:37:07.960
if it's too hot or too cold, you win. Yeah. I think

488
00:37:08.000 --> 00:37:10.280
the great thing will it is always
too hot or too cold? The world

489
00:37:10.320 --> 00:37:13.760
is way bigger than us. It'll
always make its change, all right.

490
00:37:13.840 --> 00:37:15.840
So you know, one of the
things I was talking about earlier is,

491
00:37:15.880 --> 00:37:19.360
you know, we're looking for the
market to pull back and rally June,

492
00:37:19.440 --> 00:37:23.920
July, August typically yep. Okay, the big thing guys, And you

493
00:37:23.920 --> 00:37:27.639
know, I've had a lot of
conversation with people. You know, you

494
00:37:27.679 --> 00:37:30.119
can think that something's gonna happen,
you're gonna do something, but what are

495
00:37:30.119 --> 00:37:31.599
you gonna do about it? See, when a lot of people, if

496
00:37:31.599 --> 00:37:37.679
they're not managing the money in house
like we do, you can't mitigate risk

497
00:37:37.800 --> 00:37:42.000
unless you pull it out. Okay, if someone else is managing the money,

498
00:37:42.079 --> 00:37:45.360
it's that mandate to go ahead and
invest it. So the markets go

499
00:37:45.400 --> 00:37:49.400
down, you're gonna lose. The
markets go up, you're gonna make money.

500
00:37:50.840 --> 00:37:53.880
If you want to go ahead and
be able to mitigate risk, you

501
00:37:54.000 --> 00:37:58.559
have to be with people that understand
how to mitigate risk. It's that simple.

502
00:37:59.679 --> 00:38:04.079
Because David and I've been in this
a long time. The thing that

503
00:38:04.119 --> 00:38:07.239
bothered us more than anything is when
people say, oh, the markets went

504
00:38:07.280 --> 00:38:09.679
down, don't worry to come back. Yes, they will come back,

505
00:38:09.679 --> 00:38:13.880
but what are you gonna do about
coming back when I tell them, you

506
00:38:13.960 --> 00:38:15.480
know what, the one main thing
that you're going to do when things get

507
00:38:15.480 --> 00:38:19.800
beat up, You're going to indexes
go. Why would you going indexes?

508
00:38:19.840 --> 00:38:21.920
I said, because they will always
come back and make a new high.

509
00:38:22.960 --> 00:38:25.280
How do you know, I said, because it's a rig system to do

510
00:38:25.320 --> 00:38:30.320
it. The reason is think just
think lately, Apple, Apple and Amazon

511
00:38:30.360 --> 00:38:34.960
were not in the Amazon just got
into the Dow. Apple got him what

512
00:38:35.000 --> 00:38:39.800
a couple of years ago. Okay, Microsoft wasn't in the door originally.

513
00:38:39.840 --> 00:38:45.679
They're there stocks that are doing terribly
that are in the Dow, like ge

514
00:38:46.000 --> 00:38:52.599
did and Walgreens. They boot them
out and they replace them with the uh

515
00:38:53.039 --> 00:38:57.360
the best stocks on the market at
that time, Salesforce, dot Com.

516
00:38:57.440 --> 00:39:01.800
Right, they got beat up.
Okay, but what I'm trying to say

517
00:39:02.480 --> 00:39:07.360
is mechanically they will always go make
a new hide because you don't have to

518
00:39:07.400 --> 00:39:10.519
put more money in. Now,
if you have all thirty stocks in your

519
00:39:10.559 --> 00:39:15.400
portfolio, you take thirty stocks of
the doubt and you invest them equally,

520
00:39:15.519 --> 00:39:19.519
and you when they take Walgreens out, you take Walgreens out and put it

521
00:39:19.559 --> 00:39:22.920
in. You don't have enough money
to go buy the Apple. The same

522
00:39:22.000 --> 00:39:28.920
way Apple's already gone up. So
the idea behind it is you lose the

523
00:39:28.960 --> 00:39:32.280
money on one side in the indexes, it doesn't matter, they're just replacing

524
00:39:32.280 --> 00:39:37.719
it to make the index. Hire
buy the index because if you don't,

525
00:39:37.719 --> 00:39:40.440
the individual stocks will hurt you.
So what we have always done, not

526
00:39:40.519 --> 00:39:45.679
always, but probably what twenty is
now we put a model together called GfG

527
00:39:45.800 --> 00:39:52.159
model Greenberg Financial Group Model, and
it comprises of the indexes and we rebalance

528
00:39:52.199 --> 00:39:55.559
them all the time and we'll stay
invested twenty twenty five or thirty percent sometimes

529
00:39:55.639 --> 00:39:59.559
is people that's all they want to
do is be in the model of the

530
00:40:00.079 --> 00:40:04.360
excess. And we know if we
keep rebalancing it, then we take off

531
00:40:04.360 --> 00:40:06.800
money from the high of the ones
that are doing well and we put them

532
00:40:06.800 --> 00:40:09.280
in the ones that are not,
and they will rotate and you stay in

533
00:40:09.360 --> 00:40:15.320
balance and eventually they will go make
new highs. And we're in that allocation

534
00:40:15.559 --> 00:40:19.239
at all times. So when you
have a day like today where the market

535
00:40:19.559 --> 00:40:24.360
reverses and takes off, we're participating. Yeah, it's having a systematic approach

536
00:40:24.360 --> 00:40:30.599
to the whole portfolio, not keeping
all the just indexes, but also understanding

537
00:40:30.639 --> 00:40:36.079
how you can use individual stocks to
you know, increase the return on certain

538
00:40:36.159 --> 00:40:38.119
levels of the portfolio. But also, as Dean says, the proactive strategies

539
00:40:38.199 --> 00:40:44.480
is what really makes us difference.
Things like inverse ETFs, using options to

540
00:40:44.559 --> 00:40:49.199
mitigate risk, a lot of host
of different tools that many money managers just

541
00:40:49.239 --> 00:40:52.559
don't use because they're either scared to
use or they don't have the education of

542
00:40:52.599 --> 00:40:54.880
the tools itself. They use them
in big family offices, they use them

543
00:40:54.960 --> 00:41:00.360
in institutional accounts. They'll lose them
in uh, very very big accounts,

544
00:41:00.440 --> 00:41:06.679
wealthy accounts, okay, But the
actual retail client who were pretty much speaking

545
00:41:06.679 --> 00:41:09.079
to that you know, has anywhere
from you know, a couple hundred thousand

546
00:41:09.159 --> 00:41:13.800
to twenty million, all right,
they don't get the type service now.

547
00:41:14.159 --> 00:41:16.360
And you know, for a long
time, you know, you only hear

548
00:41:16.519 --> 00:41:22.039
family offices meant that you had the
Waltons, or you had the you know,

549
00:41:22.119 --> 00:41:27.000
the the Trumps or whatever. Their
offices took care of those people's money.

550
00:41:27.000 --> 00:41:30.639
They had their own accountants, their
own investment people. They're all alternative

551
00:41:30.639 --> 00:41:32.519
people, and they got paid.
That was their job work in the family

552
00:41:32.559 --> 00:41:37.039
office. I came up with the
ideals, why can we have a family

553
00:41:37.079 --> 00:41:43.400
office for the just normal person okay, and that's what we've done. We

554
00:41:43.519 --> 00:41:46.119
got accounting services, we got money
management service, we've got financial planning services,

555
00:41:46.559 --> 00:41:52.239
and we we have insurance services,
and we have what do you call

556
00:41:52.280 --> 00:41:57.599
it, attorneys, marketing games,
and the mortgages. Got it all yeah,

557
00:41:57.800 --> 00:42:01.280
in one office financial supermarket. Well, I'm well, look at a

558
00:42:01.280 --> 00:42:07.400
family business as a family office for
the retail investor. All right, no

559
00:42:07.400 --> 00:42:09.800
one's ever thought about that day.
Think about that. They think you have

560
00:42:09.840 --> 00:42:14.400
to have tens and twenty million dollars
and they put a couple in. A

561
00:42:14.480 --> 00:42:19.400
family officers usually have a couple hundred
million bucks. Okay, we have that.

562
00:42:20.079 --> 00:42:23.159
We have a way more than that. But it's individuals. We're helping

563
00:42:23.199 --> 00:42:27.519
the individual, not just one of
two families. Sure, and if you

564
00:42:27.559 --> 00:42:30.119
call, you can talk to anyone
of us and we'll know what's going on

565
00:42:30.199 --> 00:42:31.920
with your account. We all work
together. How does the planning work,

566
00:42:32.119 --> 00:42:35.679
Because we've had a lot of people
call this week for planning. We're going

567
00:42:35.719 --> 00:42:38.400
to be talking about that next hour. Okay, yeah, but a quick

568
00:42:38.440 --> 00:42:40.880
overview of how the planning works.
I mean, what we really look at

569
00:42:40.960 --> 00:42:44.800
is if it's a call and then
when we set up the first planning meeting

570
00:42:44.800 --> 00:42:47.360
and we go through all of your
all your financial life, your expenses,

571
00:42:47.400 --> 00:42:52.119
your income, your social Security expected
or if you're taking it, any pensions

572
00:42:52.119 --> 00:42:55.559
you might have, any iras,
any inherited iras, any four own k's

573
00:42:55.559 --> 00:42:59.639
all that real estate that we put
that in. We'll give you a whole

574
00:43:00.000 --> 00:43:02.599
lillistic picture of your financial plan to
give you an idea of what it could

575
00:43:02.639 --> 00:43:07.199
look like in during retirement, whether
you need income, whether you need a

576
00:43:07.199 --> 00:43:09.840
bridge a gap between expenses and your
retirement income. That's what we look at

577
00:43:09.880 --> 00:43:14.039
in the first meeting. In the
second meeting with that process is going over

578
00:43:14.079 --> 00:43:17.840
our exact ideas of how we would
implement the plan we talked about into the

579
00:43:17.880 --> 00:43:22.559
real life and get you going during
retirement. Yeah, the financial plan is

580
00:43:22.719 --> 00:43:28.519
basically a CFO coming to the table
with the CEO, the clients goals and

581
00:43:28.599 --> 00:43:30.280
values and showing them what's the best
way to do it. You know,

582
00:43:30.320 --> 00:43:34.280
when I go into a business,
or when I go into any kind of

583
00:43:34.400 --> 00:43:40.280
advantage, it's always I'm a very
I like predictable, right, So when

584
00:43:40.320 --> 00:43:45.840
someone would calls for a financial plan, walk me through how it works.

585
00:43:45.039 --> 00:43:49.519
Now, Dylan hit a lot of
the salient points. Somebody calls you,

586
00:43:49.639 --> 00:43:51.679
says, I want to do a
financial plan. What's the first thing you

587
00:43:51.719 --> 00:43:53.599
do, Todd? I send an
email with the list of the stuff that

588
00:43:53.599 --> 00:43:58.400
we're going to have them gather homely
give him some homework, account statements,

589
00:43:58.480 --> 00:44:00.920
insurance policies, current income, things
like that nature that helps me build out

590
00:44:00.920 --> 00:44:05.199
the plan. They bring in that
information to the initial meeting and I put

591
00:44:05.239 --> 00:44:07.280
it into the software. As I'm
in putting into the software, I'm asking

592
00:44:07.320 --> 00:44:12.199
them questions about their goals. They're
coming into the officer sitting in a conference

593
00:44:12.280 --> 00:44:15.559
room behind closed doors with you and
Dylan. Yeah, and we and we

594
00:44:15.599 --> 00:44:17.599
work through the financial plan together.
It's on a screen, so it's not

595
00:44:17.639 --> 00:44:22.480
like you're behind a computer or anything
like that. We actually both all four

596
00:44:22.519 --> 00:44:25.360
of us or all three of us
look at it on the actual TV.

597
00:44:25.519 --> 00:44:30.400
You're asking questions, filling in banks
right, yeah, and clarifying things like

598
00:44:30.480 --> 00:44:34.400
if your expenses are only seventy thousand
a year, have you included healthcare expenses

599
00:44:34.440 --> 00:44:37.440
in there? Or is that lumped
into your current paycheck? Or are you

600
00:44:37.519 --> 00:44:39.440
including travel in there? Or is
that something that you want to start doing

601
00:44:39.480 --> 00:44:42.639
after you Also, do you have
any big expenses that are going to end

602
00:44:42.719 --> 00:44:45.679
during retirement, whether it's a mortgage
or just a car loan or something like

603
00:44:45.719 --> 00:44:47.320
that. So if it's you got
only three more years left on that loan,

604
00:44:47.400 --> 00:44:50.519
we talk about that to show what
it could look like without it.

605
00:44:50.679 --> 00:44:53.039
We'll look at it freaked out about
right, anything that's concerning you, anything

606
00:44:53.079 --> 00:44:55.440
that's one off. Yeah, And
then we have to look at how they're

607
00:44:55.440 --> 00:44:59.760
currently invested, and then we ask
them about their risk and how they feel

608
00:44:59.800 --> 00:45:02.400
about how their portfolio is currently invested, and how whether they think it's too

609
00:45:02.480 --> 00:45:07.000
risky or not. And then we
actually send them an actual risk tolerance questionnaire.

610
00:45:07.239 --> 00:45:09.239
When they complete that, that alerts
us, and then we call them

611
00:45:09.239 --> 00:45:14.000
back up to come back in for
an actual recommendation meeting where we give them

612
00:45:14.039 --> 00:45:17.920
suggestions, actual steps that we would
take for their plan, and if they

613
00:45:19.039 --> 00:45:21.920
like it, they can move forward
and start implementing. But there's no obligation

614
00:45:22.000 --> 00:45:23.719
to do so, and there's no
cost for the initial meetings to see if

615
00:45:23.760 --> 00:45:27.320
you wanted to do so. So
you've gone through the input process, you

616
00:45:27.400 --> 00:45:30.480
and Dylan, and then you analyze
the data based on the risk that they

617
00:45:30.559 --> 00:45:36.880
answer and come back to them made
the second meeting with a specific recommendations if

618
00:45:36.880 --> 00:45:39.920
they can choose to follow or not
exactly. So here's the best way home.

619
00:45:40.360 --> 00:45:45.320
How much should we shot che zero
zero wheel zero? Yeah. Another

620
00:45:45.320 --> 00:45:47.599
cool thing about the plan too,
where we can go over during the first

621
00:45:47.679 --> 00:45:52.079
or second meeting, is what you're
afraid of? What if inflation goes up

622
00:45:52.119 --> 00:45:54.719
more than expected for longer than expected, what if social security gets cut in

623
00:45:54.760 --> 00:45:58.360
half? We can look at all
that in real time to give you an

624
00:45:58.400 --> 00:46:00.800
idea of what it could look like
through your retirement. So that's a nice

625
00:46:00.840 --> 00:46:04.440
little feature we have on the plan. And I would guess that for ninety

626
00:46:04.519 --> 00:46:07.480
nine percent of the people you see, this is the first time they've ever

627
00:46:07.519 --> 00:46:09.840
done anything remotely close to this.
Yeah, I would say about ninety five

628
00:46:09.840 --> 00:46:14.559
percent. Some definitely say they've done
financial plants. But the most unique thing

629
00:46:14.599 --> 00:46:17.840
about ours is the Monte Carlo simulation. And not using an average standard return

630
00:46:17.880 --> 00:46:22.400
of say a standard six percent every
single year, it's just unrealistic. It

631
00:46:22.400 --> 00:46:24.880
doesn't happen in real financial markets.
So actually able to see the ups and

632
00:46:24.880 --> 00:46:30.320
downs of how the market would actually
perform is a way better way to see

633
00:46:30.320 --> 00:46:32.079
if the plant works in the end
or not. Every time you say Monti

634
00:46:32.079 --> 00:46:36.320
colo. I just think about just
being in the sunshine. Yeah, absolutely,

635
00:46:36.440 --> 00:46:38.960
France, that's where it came from, hanging down on the yah in

636
00:46:39.079 --> 00:46:43.199
the ocean. Yep, yep.
Well with that, I mean what he

637
00:46:43.320 --> 00:46:46.599
means is like, we can show
you the random simulation shows you retire in

638
00:46:46.599 --> 00:46:50.800
twenty thirty. That year just happened
to be a minus thirty percent year.

639
00:46:50.920 --> 00:46:52.239
It's just a crappy year, all
of that, and it shows you what

640
00:46:52.280 --> 00:46:54.440
it could look like. And if
you're good throughout the worst time, then

641
00:46:54.480 --> 00:46:59.599
you're fine in the sense. Bottom
line is we make it simple, very

642
00:46:59.639 --> 00:47:01.199
simple. If you've never been to
our offense, it's even more simpler.

643
00:47:01.199 --> 00:47:06.119
We got plenty of parking one floor. You just walk in either come up

644
00:47:06.159 --> 00:47:08.800
the stands of the elevator and you
walk in and it's very friendly and it

645
00:47:08.880 --> 00:47:15.159
helps. We've been taking care of
thousands of people over the years. Think

646
00:47:15.159 --> 00:47:16.400
about it. Would like to take
it help you out too. We'll be

647
00:47:16.480 --> 00:47:21.679
right back top of the hour up
Money Matter Show. We do appreciate you

648
00:47:21.800 --> 00:47:23.639
listening. Welcome back to the second
hour the Money Matter Show. I'm Villain.

649
00:47:23.719 --> 00:47:29.280
I'm here with Dave Todd and Sebastian
For those of you just tuning in.

650
00:47:29.320 --> 00:47:31.039
The Dow is down one percent for
the week, the SMP was down

651
00:47:31.079 --> 00:47:35.039
a half percent for the week,
The NASDAK was down one point one percent.

652
00:47:35.280 --> 00:47:38.239
The Russell two thousand was pretty flat, and then equal weighted SMP five

653
00:47:38.320 --> 00:47:44.239
hundred was flat as well. For
the year, the NASDAK in SMP are

654
00:47:44.599 --> 00:47:47.440
doing the best. SP's up to
ten point seven percent, the nasdak's up

655
00:47:47.480 --> 00:47:52.480
eleven and a half percent. A
lot of it has to do with Nvidia

656
00:47:52.679 --> 00:47:55.360
and other tech companies. Obviously,
the NASDAK is tech heavy, but the

657
00:47:55.440 --> 00:48:00.480
SP five hundred with if it's weighted, it's getting helped by the tech companies.

658
00:48:00.960 --> 00:48:04.079
It was interesting this week to see
the Russell actually up a tenth of

659
00:48:04.079 --> 00:48:07.559
a percent with the Dow down of
a full percent and the equal weighted s

660
00:48:07.599 --> 00:48:12.440
and P five hundred down just a
tenth of a percent, while the S

661
00:48:12.480 --> 00:48:15.519
and P was down to half a
percent. That seems like a little rotation

662
00:48:15.639 --> 00:48:19.320
there. Yeah, you saw it
last week with money managers putting some money

663
00:48:19.320 --> 00:48:22.800
behind the small cap space and cycling
in, you know, doing the cyclical

664
00:48:22.880 --> 00:48:27.000
change out of technology. And then
it was weird because we you know,

665
00:48:27.159 --> 00:48:30.960
technology had that one week where it
kind of came back, but seems like

666
00:48:30.960 --> 00:48:34.400
it kind of came back this week. So our thesis for this year really

667
00:48:34.400 --> 00:48:37.760
has been value out performing growth and
it has not yet. No, but

668
00:48:38.199 --> 00:48:43.159
again, you have seen over the
last month a little bit of a shift.

669
00:48:43.519 --> 00:48:45.960
Yep, you've seen a little shift
into the value more so people are

670
00:48:45.960 --> 00:48:49.480
starting to take some profits from other
large tech companies. I think a lot

671
00:48:49.519 --> 00:48:52.480
of that has to do with just
the idea of how much growth can you

672
00:48:52.719 --> 00:48:58.360
project in AI companies until you start
seeing you know, actual numbers everything.

673
00:48:58.400 --> 00:49:00.119
Like you say, Dave, is
this whole industry is based on the video

674
00:49:00.199 --> 00:49:04.000
right now just being able to say, hey, people are still interested in

675
00:49:04.000 --> 00:49:07.400
AI because that's where this rally has
happened in the first place. But eventually

676
00:49:07.440 --> 00:49:13.639
we need some you know, money
making AI services and if we can see

677
00:49:13.639 --> 00:49:16.840
that, then put these max sevens
can keep going higher and higher. But

678
00:49:16.920 --> 00:49:22.559
it seems like until we see material
evidence of profitability out of AI, maybe

679
00:49:22.599 --> 00:49:25.360
there's going to be this cyclical change
in the interim. Yeah. Thus far,

680
00:49:25.400 --> 00:49:30.400
it's all been the promise of AI, and I think of it in

681
00:49:30.480 --> 00:49:35.480
terms of the charging stations for electric
vehicles right the buildout is what's going on

682
00:49:35.559 --> 00:49:39.880
right now, and the revenue is
nowhere near the capital outlay at this point.

683
00:49:40.760 --> 00:49:45.039
But the promise of AI and what
it can do for companies bottom line

684
00:49:45.840 --> 00:49:49.920
is what is what's driving things.
Oil was down in another seventy cents,

685
00:49:50.000 --> 00:49:55.079
keeps drifting lower. Seventy seven bucks. Gold kind of installed out. Gold

686
00:49:55.119 --> 00:50:00.840
has been on fire, and it
was down thirteen dollars week to twenty three,

687
00:50:00.960 --> 00:50:04.360
twenty one still just so that's about
one hundred bucks below the high.

688
00:50:05.239 --> 00:50:08.519
Gold has been a eight hundred pound
guerrilla this year. It's just really been

689
00:50:09.599 --> 00:50:15.719
spectacular what's happened. Hopefully these lower
oil prices help these airliners out. So

690
00:50:15.719 --> 00:50:19.440
you got American Airlines that's trading around
it's pre pandemic lows right now. They

691
00:50:19.480 --> 00:50:23.000
got hammered on Tuesday, I think
it was down thirteen point three percent off

692
00:50:23.039 --> 00:50:28.800
of their earnings reports, right and
the couple of downgrades, and it's the

693
00:50:28.880 --> 00:50:34.079
same A couple of the same analysts
that had downgraded American upgraded United same day.

694
00:50:34.719 --> 00:50:37.679
I thought that kind of So United
is Todd used to put out that

695
00:50:38.000 --> 00:50:42.039
chart. It was Delta that was
doing the best, Delta the best,

696
00:50:42.599 --> 00:50:46.800
I think, So Southwest has an
interesting position in the airline industry just because

697
00:50:46.840 --> 00:50:52.039
they you know, flying Southwest,
you don't have to pay for your seats

698
00:50:52.119 --> 00:50:54.480
or have you have options on where
you can sit right, and you don't

699
00:50:54.480 --> 00:51:00.079
have to pay for your two bags. If they start implementing different pricing methods,

700
00:51:00.320 --> 00:51:04.719
they could kind of gain some ALFHA
here and they could find a different

701
00:51:04.800 --> 00:51:12.559
profit. I think somebody had mentioned
earlier before from past conversations that well,

702
00:51:12.559 --> 00:51:16.320
that's why I fly Southwest right for
sure, the cheap bags or being able

703
00:51:16.360 --> 00:51:21.000
to sit wherever I want. So
will that where will that pull in the

704
00:51:21.880 --> 00:51:27.519
Yeah, it is interesting. I
don't fly at all because my grandchildren are

705
00:51:27.559 --> 00:51:30.599
in Orange County, which is a
quick trip over by car, and I

706
00:51:30.639 --> 00:51:32.960
can throw all my clothes in the
back. I don't have to plan or

707
00:51:32.960 --> 00:51:37.239
think about it much, just load
it up and go. We're flying to

708
00:51:38.000 --> 00:51:44.559
Louisville in July to see relatives we
haven't seen in twenty years. Really,

709
00:51:44.599 --> 00:51:47.559
my wife's only living relatives. And
as we get LOLd or we start to

710
00:51:47.559 --> 00:51:51.159
think about, well, probably out
to see them one more time, you

711
00:51:51.159 --> 00:51:55.039
know, and you know, booking
the flight and paying for your seat,

712
00:51:55.079 --> 00:51:59.320
and it's like it's all foreign to
me, and it's just so bizarre.

713
00:52:00.239 --> 00:52:04.360
What's happened is that whole industry in
the last probably been five years since I've

714
00:52:04.360 --> 00:52:08.559
fallen using American American. Yeah,
only because I'm familiar with it. You

715
00:52:08.639 --> 00:52:13.440
know. The last time I flew
which when they had Kentucky, when they

716
00:52:13.480 --> 00:52:16.679
had propellers and stuff. Yeah,
well, you know, we got to

717
00:52:16.840 --> 00:52:21.199
fly twos on to Atlanta. That's
a heck of a long flight. Yeah,

718
00:52:21.239 --> 00:52:22.800
then it's nice to I'm good for
two hours. That's about it.

719
00:52:23.159 --> 00:52:25.159
My wife and I had to,
ever, my wife and I had to

720
00:52:25.199 --> 00:52:30.599
fly to three different weddings a Boise, Idaho, MI, Minneapolis, and

721
00:52:30.960 --> 00:52:34.760
Naples, Florida about five years ago, all in the same year, and

722
00:52:34.840 --> 00:52:37.039
we determined that we can we can
be on a plane for about two hours.

723
00:52:37.079 --> 00:52:40.760
That's it. We're both kind of
antsy people and kind of jumpy people.

724
00:52:40.800 --> 00:52:44.199
And well it's a shift too,
because, I mean, years ago,

725
00:52:44.239 --> 00:52:45.920
Delta wasn't was like kind of the
bottom of the tone of Polar American

726
00:52:46.000 --> 00:52:49.639
was the best, and then Delta
stunk a lot of money into renovating their

727
00:52:49.679 --> 00:52:52.320
planes, getting them updated, doing
all these different things to make everything better

728
00:52:52.599 --> 00:52:55.760
for Delta. Now it's the top
dog. So Americans trying to do the

729
00:52:55.800 --> 00:53:00.639
same. They're updating their planes,
but it takes a while for that shift

730
00:53:00.639 --> 00:53:04.760
to happen. The only reason I
chose Americans because the before word or dallash

731
00:53:04.840 --> 00:53:07.760
is halfway yeah and a half to
two yeah yeah. I think the whole

732
00:53:08.440 --> 00:53:13.119
if you look at it, though, if you're buying a plane stock at

733
00:53:13.119 --> 00:53:17.360
pre pandemic lows I saw a chart
that showed transportation volume is at the same

734
00:53:17.480 --> 00:53:22.000
level as it was pre pandemic.
So make that make sense. How you

735
00:53:22.000 --> 00:53:25.000
can have the same amount of transportation
that you had pre pandemic, but the

736
00:53:25.039 --> 00:53:28.880
stock is not worth the same amount
of money it was worth when no one

737
00:53:28.960 --> 00:53:32.559
was traveling. It's a very futile
sector. But if you want to get

738
00:53:32.559 --> 00:53:36.280
into it, and you're not really
sure which company to buy into, you

739
00:53:36.320 --> 00:53:37.760
just want to kind of get your
feet wet in the whole thing. You

740
00:53:37.760 --> 00:53:42.039
can buy an ETF it's called jets
which j E. T s. It

741
00:53:42.079 --> 00:53:44.719
has a little bit of all the
airlines. It doesn't move as much.

742
00:53:44.719 --> 00:53:46.599
It's a little but that's part of
the point. But it is a way

743
00:53:46.639 --> 00:53:51.199
to get into the sector if you're
interested in it. Speaking of transportation,

744
00:53:51.400 --> 00:53:55.360
last week, we talked about Tesla
stock had rallied because of excitement over the

745
00:53:55.440 --> 00:54:00.039
semi truck, and I did a
little research into that because I was kind

746
00:54:00.039 --> 00:54:07.400
of wondering, who would buy an
electric semi truck that that's gonna go X

747
00:54:07.519 --> 00:54:12.360
number of miles. Well, they're
projecting a range on these semis, these

748
00:54:12.400 --> 00:54:15.960
electric semis, of five hundred miles. Now we all know that that really

749
00:54:15.000 --> 00:54:20.039
means three hundred miles, maybe three
fifty if you stretch it. That's it.

750
00:54:20.400 --> 00:54:22.920
That's the range. So I thought
to myself, well, what does

751
00:54:22.920 --> 00:54:30.320
a diesel powered truck get per tankful? Right? Get this, a diesel

752
00:54:30.360 --> 00:54:34.599
powered truck filled with three hundred gallons
of fuel, which apparently is fairly standard,

753
00:54:35.119 --> 00:54:39.639
is capable of twenty one hundred miles
Holy smokes, twenty one hundred miles

754
00:54:39.760 --> 00:54:45.800
versus three fifty. I don't know, no, I don't know who would

755
00:54:45.840 --> 00:54:49.920
be interested in this. I mean, I love my Tesla, but I'm

756
00:54:50.079 --> 00:54:53.119
just not a fan of the stock
at these levels. The problem is people

757
00:54:53.159 --> 00:54:55.960
are going to be interested in it
is the companies who think they need to

758
00:54:57.039 --> 00:55:00.280
hit their ESG mandates because again,
you get credits, like when we talked

759
00:55:00.280 --> 00:55:05.239
about Tesla, they get a lot
of ESG credits, which they then even

760
00:55:05.320 --> 00:55:08.000
sell to other people who don't meet
their quota. It's part of their net

761
00:55:08.039 --> 00:55:12.679
income. It's part of their They
get penalized if they don't have enough ESG

762
00:55:12.800 --> 00:55:14.719
credits, so they have to go
out and get it. That's why,

763
00:55:15.199 --> 00:55:17.400
I mean Tesla makes like four billion
dollars a year off just ESG credits.

764
00:55:17.480 --> 00:55:20.800
Yeah, so you're think and maybe
they go out and they're forced to do

765
00:55:20.840 --> 00:55:22.800
They're gonna lose money anyway. Dese
truction, Parker, You're gonna get penalized

766
00:55:22.800 --> 00:55:25.480
by the government anyways for not doing
it. It doesn't these electric trucks you

767
00:55:25.559 --> 00:55:29.039
just park them, might as well
have something for it. I mean,

768
00:55:29.039 --> 00:55:30.280
a big company can afford to do
that, right by a dozen of them,

769
00:55:30.360 --> 00:55:32.599
just park them somewhere. It's not
whether they can't afford it or not,

770
00:55:32.679 --> 00:55:36.559
it's the government is making them afford
it. And that's the problem.

771
00:55:36.599 --> 00:55:42.920
Stock is currently selling it seventy times
earnings with an expected year over year earnings

772
00:55:43.119 --> 00:55:46.800
drop of nineteen percent, so they're
actually and net income is actually going down.

773
00:55:47.360 --> 00:55:52.039
Now in the perfect world, your
pe is the growth rate times the

774
00:55:52.079 --> 00:55:58.280
earnings. So if you're earning a
dollar a share, and you're growing at

775
00:55:58.320 --> 00:56:04.400
seventy percent per year, you'd be
seventy dollars. Tesla's at seventy times earnings

776
00:56:04.400 --> 00:56:09.519
with there's seventy times with earnings declining. Twenty twenty five earnings for Tesla projected

777
00:56:09.559 --> 00:56:15.920
to equal twenty twenty three. Their
earnings are supposed to be flat over the

778
00:56:15.000 --> 00:56:17.800
last two years. So if you
think they're expecting to earn two dollars and

779
00:56:17.840 --> 00:56:22.760
fifty cents a share, all right, So if you're not growing, you

780
00:56:22.800 --> 00:56:24.880
ought to be a ten dollars.
Ten times earnings is roughly the estima.

781
00:56:24.960 --> 00:56:29.360
So twenty five dollars shocks what one
hundred and seventy five? Yeah, should

782
00:56:29.360 --> 00:56:30.840
be twenty five dollars. Okay,
Now let's be generous. Let's say they're

783
00:56:30.840 --> 00:56:35.159
gonna the growth is going to accelerate, They're gonna be a twenty times earnings,

784
00:56:35.159 --> 00:56:37.880
So that's fifty dollars. Yeah,
but you're also assuming all that extra

785
00:56:37.960 --> 00:56:40.320
cap. You're looking at bottom line
estimates growth. Yeah, if we're looking

786
00:56:40.360 --> 00:56:44.199
at revenue, that's I mean,
that's because you can also say that the

787
00:56:44.239 --> 00:56:46.320
revenue is decline, the revenue is
going to be probably be declining year over

788
00:56:46.400 --> 00:56:50.039
year. Well, that's what you
really need to look at, because they

789
00:56:50.039 --> 00:56:52.840
could just be putting a lot of
CAPEX into other projects right now, and

790
00:56:52.880 --> 00:56:57.159
that's why their earnings looks lower.
Sock stock looks like it should be fifty

791
00:56:57.199 --> 00:57:00.599
to seventy five dollars max. Yeah, but that's also why that price of

792
00:57:00.639 --> 00:57:04.320
earnings is just one yeah aspect the
look, David, we know that value.

793
00:57:04.360 --> 00:57:07.039
It's the price to magic ratio.
It's not the price to earnings ratio

794
00:57:07.079 --> 00:57:10.440
when you deal with technology stocks.
It's the price to magic ratio. How

795
00:57:10.519 --> 00:57:15.599
much can you hypothetically, you know
a lot of these mag sevens, they're

796
00:57:17.079 --> 00:57:20.480
you can't really justify it. That's
what it does. We get a lot

797
00:57:20.519 --> 00:57:22.559
of love, no question about it. But oh yeah, I just think

798
00:57:22.559 --> 00:57:25.800
the stock is really scary at these
prices at least. You know what's funny

799
00:57:25.840 --> 00:57:30.559
is, you know a lot of
people think Tesla is like an investment into

800
00:57:30.559 --> 00:57:36.159
SpaceX type of thing, which completely
is not completely you're investing in Elon Musk.

801
00:57:36.400 --> 00:57:39.039
Yeah, there was. I guess
there is actually a couple of mutual

802
00:57:39.079 --> 00:57:44.079
funds out there that have SpaceX in
them. It's been cool. There's one

803
00:57:44.119 --> 00:57:46.880
that has thirty six percent of its
whole holdings, just SpaceX, no private

804
00:57:46.880 --> 00:57:51.280
equity type. Yeah. Wow,
the listeners will have to do their own

805
00:57:51.280 --> 00:57:54.519
research. Yeah, but it's crazy. I don't think you eat into SpaceX

806
00:57:54.599 --> 00:57:59.519
until this week. Yeah, it
was interesting that the Dow Dean talked about

807
00:57:59.559 --> 00:58:02.400
it the first segment about how the
Dow will. You're a poor performing stock,

808
00:58:02.440 --> 00:58:07.599
you get replaced right by somebody else
who's doing better. And within the

809
00:58:07.679 --> 00:58:12.800
last two years, Walgreens got kicked
out, and Walgreens, by the ways

810
00:58:12.840 --> 00:58:16.760
trading at a twenty five year low
right now, so they've dropped rather dramatically

811
00:58:16.800 --> 00:58:22.719
since they were kicked out. They
were replaced by Salesforce dot Com, which

812
00:58:23.079 --> 00:58:28.320
you described as kind of a redtail
type of just a way to a lot

813
00:58:28.320 --> 00:58:30.800
of people are clients. People don't
know what redtail is, so we should

814
00:58:30.800 --> 00:58:35.880
probably explain. It's a client relationship
management CRM. Yeah, relationship man.

815
00:58:35.920 --> 00:58:37.159
It's kind of like if you were
a doctor, in your list of all

816
00:58:37.199 --> 00:58:40.159
your clients, phone numbers, things
like that, so you can contact them

817
00:58:40.239 --> 00:58:44.920
they need a CRM, that's what
That's what Salesforce does. So Salesforce dot

818
00:58:44.960 --> 00:58:49.559
Com, the company that replaced Walgreens, opens twenty percent lower on Tuesday,

819
00:58:49.960 --> 00:58:54.000
after a very disappointing earned. His
reports that it's worst day in sixteen years.

820
00:58:54.400 --> 00:59:00.559
Right, that's a they issued disappointing
quarterly results for the first time since

821
00:59:00.639 --> 00:59:05.480
two thousand and six, which is
eighteen years ago. Oh yeah, they

822
00:59:05.519 --> 00:59:07.400
haven't done this for eighteen years.
They had their worst day in sixteen years,

823
00:59:07.440 --> 00:59:13.400
and that's the company that Dell chose
to replace. Cool story about Salesforce.

824
00:59:13.480 --> 00:59:15.920
Not sure. I'm pretty sure it's
true because he told me one of

825
00:59:15.920 --> 00:59:21.360
my professors his brother was the one
of the executives on Salesforce, like Big

826
00:59:21.480 --> 00:59:24.039
Very from the very beginning. It's
interesting, Well, if you're in there

827
00:59:24.039 --> 00:59:27.440
from the very beginning, that'd be
a nice gig, right, doing pretty

828
00:59:27.440 --> 00:59:30.639
well? Yeah yeah, foot locker, it's coming back from the dead.

829
00:59:30.800 --> 00:59:35.519
Yeah, they're twenty percent after better
than expected earnings. They saw their comparable

830
00:59:35.559 --> 00:59:37.400
sales to climb one point eight percent
during the year during the first quarter,

831
00:59:37.880 --> 00:59:40.599
but that's still better than they expected. They thought they were going to drop

832
00:59:40.639 --> 00:59:45.360
three percent during the first quarter.
So the new CEO has been doing all

833
00:59:45.400 --> 00:59:49.480
these new reward programs and everything,
and it's starting to work out for him,

834
00:59:49.679 --> 00:59:54.199
and Nike said they've kind of they
overdid it when they started selling less

835
00:59:54.239 --> 00:59:58.079
to these companies, to the companies
like foot Locker and try to sell on

836
00:59:58.119 --> 01:00:00.679
their own website. The CEO came
out, I said, they did it

837
01:00:00.760 --> 01:00:02.239
overdid it a little bit. So
they're going to be given more shoes and

838
01:00:02.280 --> 01:00:08.639
opportunities to foot locker type companies.
So and Footlocker is also expanding the rewards

839
01:00:08.639 --> 01:00:14.039
program which the CEO is thinking of
that should help more to Speaking about coming

840
01:00:14.079 --> 01:00:16.199
back from the dead, how about
Abercrombie and Fitch, Well, yeah,

841
01:00:16.199 --> 01:00:21.000
what did you say is that the
teen retailer right, the teen retailer a

842
01:00:21.079 --> 01:00:24.119
year ago, it was left for
dead. Over the last twelve months,

843
01:00:24.400 --> 01:00:29.840
the stock has gained twice as much
as the stock that everybody in the country

844
01:00:29.880 --> 01:00:34.159
is talking about whether they have it
or don't have it, and video Abercrombie

845
01:00:34.159 --> 01:00:39.039
and Fitch has done twice as much
as in Vidia, and they added another

846
01:00:39.119 --> 01:00:43.800
twenty percent to a new all time
high on Wednesday after recording results for the

847
01:00:43.840 --> 01:00:49.719
most recent quarter far above expectations.
Was the company's best quarter in history.

848
01:00:49.800 --> 01:00:53.599
These clothing retailers have just been on
a phenomenal tear of quiet tear as well.

849
01:00:53.880 --> 01:00:58.000
You got Gap as well, clothing
retailer. They sort about thirty percent

850
01:00:58.079 --> 01:01:02.000
after their fiscal first quarter earnings report. You have TJ Max. They've been

851
01:01:02.079 --> 01:01:06.440
up. I can't say numbers,
but I know that they've had quite quite

852
01:01:06.440 --> 01:01:15.239
a good last six months. But
then Lulu, that's premium. It finally

853
01:01:15.440 --> 01:01:20.280
seems to have found a bottom around
two ninety five. This is America's Darling

854
01:01:20.559 --> 01:01:25.199
retail Darling. Everybody that was in
investing in retail wanted it own, Lulu.

855
01:01:27.079 --> 01:01:30.199
I think way we need to also
remind everyone is that retail sales last

856
01:01:30.239 --> 01:01:36.599
month came in way below expectations.
And we're talking about retail stocks here.

857
01:01:36.719 --> 01:01:39.639
No, no, So just because
they're doing really good now, it doesn't

858
01:01:39.679 --> 01:01:44.079
seem like the consumer's doing too well. Here's right now, So how well

859
01:01:44.119 --> 01:01:49.719
can these earnings keep up. Here's
another one Burlington Stores that's clothing seventeen percent

860
01:01:49.760 --> 01:01:52.880
after their earnings. That's I'm pretty
sure that's a discount shop, kind of

861
01:01:52.880 --> 01:01:55.079
like Dylan Co Factory. Yeah yeah, yeah, And I think again,

862
01:01:55.159 --> 01:02:00.639
we're we're reading past results. That's
what quarters are, and so it seems

863
01:02:00.679 --> 01:02:05.599
like if you see current economic reports, the consumer's not doing as well as

864
01:02:05.639 --> 01:02:08.840
they were in quarter one. If
the economy is really slowing down, and

865
01:02:08.880 --> 01:02:13.920
it does appear. I don't know
if you saw the Chicago Purchase Team Managers

866
01:02:13.960 --> 01:02:19.159
Index on Friday morning with thirty five. That's pretty mules so lowest since twenty

867
01:02:19.239 --> 01:02:23.119
twenty. Now it goes from zero
to one hundred. Fifty is considered neutral,

868
01:02:23.440 --> 01:02:28.280
so if you're above fifty, you're
in expansion. Thirty five is pretty

869
01:02:28.280 --> 01:02:34.280
bad shutting her down. I mean, that's really bad. And some credited

870
01:02:34.360 --> 01:02:38.079
the weakness in the market Friday morning
with that number. The PMI number was

871
01:02:38.119 --> 01:02:44.039
weighing on it. But again it
is just the Chicago region. But in

872
01:02:44.639 --> 01:02:46.880
a recession, there's a couple of
stocks that tend to do well. One

873
01:02:46.920 --> 01:02:52.400
of them is a discount retailers and
another one is beer right, and probably

874
01:02:52.440 --> 01:03:00.039
the pre eminent discount retailer out there
is Costco right, very popular Walmart Right.

875
01:03:00.079 --> 01:03:02.280
I mean, I feel like if
you're thinking of cheap places to go

876
01:03:02.320 --> 01:03:06.880
buy groceries, I go Costco,
Walmart, Costco, Yeah, Costco for

877
01:03:06.960 --> 01:03:08.599
a pretty much anything. I mean, all you have to do is to

878
01:03:08.639 --> 01:03:10.719
drive by the stores. Well,
for a single person, I'm not going

879
01:03:10.719 --> 01:03:14.119
to Costco, No, I'm going
to Wall Costco Leader because they don't like

880
01:03:14.159 --> 01:03:16.360
crowds, right, But I think
what you're saying is discouty. It is

881
01:03:16.360 --> 01:03:22.079
probably those two. It's packed.
I mean Costco is packed twenty four If

882
01:03:22.079 --> 01:03:24.639
they're open, they're packed, period. Whether it be the gas pumps,

883
01:03:24.639 --> 01:03:30.000
whether it be selling gold bullion online, whether it be every time you're there

884
01:03:30.039 --> 01:03:32.079
too. You just spend more than
you expect a way to see you're like,

885
01:03:32.159 --> 01:03:36.000
oh, I could do this right
now. Yeah, back, yeah,

886
01:03:36.039 --> 01:03:37.639
actually know it's one hundred dollars more
than you thought it was gonna be

887
01:03:37.760 --> 01:03:43.639
good quality of low prices. Come
on anyway. Stock was up twenty two

888
01:03:43.639 --> 01:03:47.239
percent this year, hit a new
all time high last Thursday, forty before

889
01:03:47.320 --> 01:03:52.559
reporting their quarterly results. Interestingly,
revenue and net income were above expectations,

890
01:03:52.960 --> 01:03:59.639
but the stock moved lower on Friday. Why a couple of reasons. Number

891
01:03:59.639 --> 01:04:04.000
one is, for whatever reason,
Costco almost always sells off after earnings.

892
01:04:04.320 --> 01:04:11.320
Eleven of the last fifteen quarters the
stock has gone down after earnings. Another

893
01:04:11.440 --> 01:04:15.599
reason is there was no announcement in
their quarterly earning report about an increase in

894
01:04:15.639 --> 01:04:20.159
the fees. The fees increase on
average at Costco every five and a half

895
01:04:20.239 --> 01:04:24.719
years. It's been seven and a
half years now since they've increased fees.

896
01:04:25.039 --> 01:04:30.719
Obviously, fees are just printing money
for them. If you up the fees

897
01:04:30.760 --> 01:04:33.239
by ten percent, you're probably not
going to lose a lot of people,

898
01:04:33.599 --> 01:04:38.000
and it's just a ten percent of
additional income from that, So there was

899
01:04:38.039 --> 01:04:44.079
no announcement about that. Also,
on the back of a Chipotle and others,

900
01:04:44.199 --> 01:04:46.480
there was this feeling that they're probably
was going to be a stock split,

901
01:04:47.159 --> 01:04:50.960
and there was no stock split.
So other than they sell off at

902
01:04:51.000 --> 01:04:55.360
the end of every quarter. Anyway, two of the things they could have

903
01:04:55.480 --> 01:04:59.599
done to cause the stock to rally
they didn't do. Another company that does

904
01:05:00.079 --> 01:05:03.119
a similar thing, that did a
similar thing that Costco did, reported great

905
01:05:03.159 --> 01:05:09.599
earnings and still did not get rewarded
by the stock market. Oakta was down

906
01:05:09.719 --> 01:05:15.440
ten percent this week. Reported earnings
and beat all expectations top line, bottom

907
01:05:15.480 --> 01:05:17.960
line, revenue, every single way
you can look at it. They did.

908
01:05:18.079 --> 01:05:21.719
They even raised guidance. Wasn't enough
for the stock markets like what they

909
01:05:21.760 --> 01:05:27.559
want front, So that was one
of the stranger stranger of reactions because it

910
01:05:27.760 --> 01:05:32.159
did on the back of those good
earnings jump five percent at the open and

911
01:05:32.239 --> 01:05:36.239
then but that day and when the
tank that day itself had a lot of

912
01:05:36.280 --> 01:05:41.920
selling in the market finished that like
the only stocks that were up that day,

913
01:05:43.039 --> 01:05:45.400
I believe there was only like once
like it was. The reason I

914
01:05:45.400 --> 01:05:48.400
bring that up is you can have
a day where you make great earnings and

915
01:05:48.440 --> 01:05:53.760
you just reported on a day where
everyone's selling right, and you get washed

916
01:05:53.800 --> 01:05:57.920
into the market sentiment. Sometimes you
can be right and the market sentiment is

917
01:05:57.960 --> 01:06:00.480
just too strong for it to care
for it to right. But a four

918
01:06:00.519 --> 01:06:03.320
hundred point dropping the doll isn't going
to cause you to go from a five

919
01:06:03.320 --> 01:06:06.559
percent gain to an eight percent loss. Well, you said something about how

920
01:06:06.719 --> 01:06:12.239
you thought that Salesforce was affecting Oakda's. That was the day Salesforce reported and

921
01:06:12.280 --> 01:06:17.679
got clobbered, and Salesforce was dragging
everything even remotely related to it. It's

922
01:06:18.280 --> 01:06:23.280
not exactly the same space, but
I do know that Salesforce is a customer

923
01:06:23.280 --> 01:06:26.039
of Okda's, which I think maybe
could have played in that. And for

924
01:06:26.119 --> 01:06:29.599
people who don't know OKEDA, is
that two factor authentication When you send that

925
01:06:29.639 --> 01:06:31.119
six digits to your phone, they're
like type the six digit in your phone

926
01:06:31.119 --> 01:06:33.400
to make sure it's you. That's
that's what OKA does. A lot of

927
01:06:33.400 --> 01:06:38.320
people you use me maybe even a
large percentage of the country using it every

928
01:06:38.320 --> 01:06:40.320
single day. And I was thinking
about this, Dave Oaked is a lot

929
01:06:40.360 --> 01:06:43.039
like your alarm company. You know, once you have it for a business,

930
01:06:43.400 --> 01:06:45.320
you're going to change your two factor
authentication company. I mean, come

931
01:06:45.360 --> 01:06:47.880
on, you're not going to It's
too much of a hassle. So I

932
01:06:47.880 --> 01:06:50.519
think OKDA, once they have those
clients, you kind of keep them.

933
01:06:50.760 --> 01:06:54.599
You're not really going to lose them. I mean unless someone comes into the

934
01:06:54.599 --> 01:06:58.000
space and just offers that the super
cheap service. I mean, for the

935
01:06:58.039 --> 01:07:00.320
most part, those businesses, once
they're with OKDA, they're going to stay

936
01:07:00.320 --> 01:07:06.199
with Oda. Everybody's favorite stock end
video exploded last week a week ago after

937
01:07:06.280 --> 01:07:12.199
earnings, and that continued. Rally
continued, new all time high on Tuesday,

938
01:07:12.280 --> 01:07:15.440
new all time high on Wednesday,
new all time high on Thursday.

939
01:07:15.960 --> 01:07:19.599
I remember ten days ago they hit
one thousand for the first time. On

940
01:07:19.639 --> 01:07:25.280
Wednesday they hit eleven fifty for the
first time. And it actually finished the

941
01:07:25.320 --> 01:07:29.519
week though with a six percent sell
off on Friday, A Thursday and Friday.

942
01:07:29.559 --> 01:07:30.599
Did you see what happened? Did
you see what happened in the gambling

943
01:07:30.599 --> 01:07:35.079
world No, So Illinois sentence approved
the state's budget over the weekend. This

944
01:07:35.159 --> 01:07:40.639
includes a measure that would raise taxes
on sports betting, implementing implementing a progressive

945
01:07:40.679 --> 01:07:44.960
tax rate for sports betting companies based
on their revenue. Off of this news,

946
01:07:45.039 --> 01:07:50.840
Draft Kings and Flutter the fan duel
parent felt ten percent and seven and

947
01:07:50.880 --> 01:07:57.239
a half percent, respectively. But
then on Friday you have the exact opposite

948
01:07:57.239 --> 01:08:00.320
happened. You have the exact opposite
happened. You had Pen entertain int up

949
01:08:00.360 --> 01:08:02.639
fifteen percent. And what was the
other one that was up? Caesar's Caesars

950
01:08:02.679 --> 01:08:06.639
because Carl Icon came out and said
he loved Caesar's, he will always own

951
01:08:06.639 --> 01:08:11.000
it, and I'll never do a
proxy fight on Caesar's. He actually said

952
01:08:11.000 --> 01:08:15.079
that, So I'll never be in
what what is the A word advocate?

953
01:08:15.640 --> 01:08:19.079
No, no, no, it's
anyway. You know what I'm talking about.

954
01:08:19.159 --> 01:08:23.119
Yeah, yeah, yeah, he's
never gonna he's never gonna go in

955
01:08:23.159 --> 01:08:26.880
and mess with activist activist exactly,
You're never going to be an active I

956
01:08:26.880 --> 01:08:30.199
could see how that would affected the
Caesar stocked. I don't see how it

957
01:08:30.239 --> 01:08:34.039
affected Penn Entertainment stocked, and it
did not affect draft kings or flutter entering

958
01:08:34.119 --> 01:08:38.680
draft kings. Slutter stayed down,
and it was the brick and mortar gambling

959
01:08:38.720 --> 01:08:41.600
that went up. It didn't seem
to make sense. I mean MGM and

960
01:08:41.920 --> 01:08:45.439
Las Vegas responded, but yeah,
the mobile betting didn't. So it was

961
01:08:46.319 --> 01:08:49.560
just a really weird week for gambling. How it happened to draft kings.

962
01:08:49.600 --> 01:08:55.119
And they responded to the Senate,
the Illinois gown saying that it's more tappen.

963
01:08:55.880 --> 01:08:59.159
They didn't know. They stayed down. They didn't respond to the other

964
01:08:59.239 --> 01:09:02.239
gambling that went up fifteen percent,
So I didn't really weird week. You

965
01:09:02.279 --> 01:09:04.680
know, we drink a lot of
Celsius in the office here. It's been

966
01:09:04.680 --> 01:09:08.680
one of the hottest names over the
last twelve months. Up one hundred and

967
01:09:08.760 --> 01:09:14.680
twenty five percent, down fifteen percent
on Tuesday after Morgan Stean Lee said data

968
01:09:14.760 --> 01:09:19.720
shows the company's year on year sales
growth slowed on a sequential basis, which

969
01:09:19.760 --> 01:09:24.640
is not good for a stock selling
it ninety times everything. All right,

970
01:09:24.680 --> 01:09:28.119
it's an expensive stock, like it's
still the most popular energy drink though,

971
01:09:28.399 --> 01:09:30.399
you do, yeah, you do
have some more people entering that space though.

972
01:09:30.439 --> 01:09:34.159
You got the Travis Kelcey Kelsey energy
drink coming out there, and I'm

973
01:09:34.159 --> 01:09:36.119
not sure. I don't even know
what it's called. I forgot what it's

974
01:09:36.159 --> 01:09:38.880
called. I was talking about it
on the radio show about to Tea.

975
01:09:38.960 --> 01:09:44.600
Yeah, Logan Paul years Celsia still
thought of as like a better version of

976
01:09:44.640 --> 01:09:46.600
Monster, like Prime. I think
of his like Gatorade, So people don't

977
01:09:46.640 --> 01:09:50.119
drink Monster anyway. It's been in
one of the hottest stock on the of

978
01:09:50.319 --> 01:09:54.159
all stocks over the last ten years. I think that was like twenty years,

979
01:09:54.159 --> 01:09:56.039
I think years. Yeah, it
was a penny stock. It was

980
01:09:56.079 --> 01:09:59.520
like forty cents back in early two
thousands. Yes, but I think that's

981
01:09:59.520 --> 01:10:00.640
like one of the best reforms talks. It is interesting though, I mean

982
01:10:00.760 --> 01:10:03.600
when the energy drinks first came out, we saw him everywhere, and it's

983
01:10:03.600 --> 01:10:09.079
like that's kind of a back to
uh in my early days, there was

984
01:10:09.079 --> 01:10:11.680
a guy that ran Fidelity in Magell
and always said buy what you know,

985
01:10:12.279 --> 01:10:15.319
and yeah, I mean you can
see that it's a saturated market. I

986
01:10:15.319 --> 01:10:17.600
mean you go to a gas station, there's so many kinds, but you

987
01:10:17.640 --> 01:10:21.319
still flock to Red Bull, the
one thing that the on, the one

988
01:10:21.319 --> 01:10:25.600
thing that Monster might have had back
in the day was the skating thing,

989
01:10:25.720 --> 01:10:28.359
right they did. Yeah, and
the dirt bikes. It was like extreme

990
01:10:28.399 --> 01:10:31.159
sports exactly. So what happened with
Celsius these last couple of years was they

991
01:10:31.199 --> 01:10:35.239
started implementing it into D one college
athletes. Yeah, and what's cool right

992
01:10:35.279 --> 01:10:39.800
now being athletic, Well, it
was like gym's there was like they would

993
01:10:39.800 --> 01:10:43.720
get like fitness models to advertise Celsius
and that's that is true. That's what

994
01:10:43.760 --> 01:10:46.960
they went after. Like Monster was
your dirt bike. You're going on ATVs

995
01:10:47.000 --> 01:10:49.720
and stuff, and that's what everybody. Red Bull did it too. Red

996
01:10:49.720 --> 01:10:54.079
Bull's always been adrenaline. I'm just
saying, like what got Monster popular and

997
01:10:54.119 --> 01:10:57.720
what Celsius is doing He's right,
is they went into gym all energy drinks

998
01:10:57.720 --> 01:11:02.000
want to go after adrenaline. That's
the point, right, It's kind of

999
01:11:02.199 --> 01:11:06.279
but it's got to find a niche. So if you want to be this

1000
01:11:06.279 --> 01:11:11.880
this athlete or this dirt bike rider
or this gorgeous woman, oh you have

1001
01:11:11.920 --> 01:11:15.560
did you drink this and you're good? Yeah, it kind of like a

1002
01:11:15.680 --> 01:11:21.039
GLP one do a backflip on up
their bike. That doesn't happened. But

1003
01:11:21.279 --> 01:11:24.800
name my kid, Kyle. First, you have to take those. Red

1004
01:11:24.800 --> 01:11:27.279
Bull gives you wings, don't you
know? Yes, red Bull gives you

1005
01:11:27.319 --> 01:11:30.560
wings. I even know that.
Anyway, we appreciate your joining us for

1006
01:11:30.640 --> 01:11:32.479
coming down to the end of this
segment. We've got two more segments to

1007
01:11:32.520 --> 01:11:35.920
come. We're going to talk a
little bit more in the next segment about

1008
01:11:35.960 --> 01:11:42.439
the financial Planning Service and again what
that really looks like. So it's no

1009
01:11:42.560 --> 01:11:45.199
mystery to you. We'll be back
right up to this bike. Thanks again

1010
01:11:45.239 --> 01:11:47.239
for joining this on this Sunday morning. Welcome back to the Money Matter Show.

1011
01:11:47.239 --> 01:11:50.680
My name is Sebastian Borseni. I'm
here with Dave Sherwood, Dylan Greenberg,

1012
01:11:50.760 --> 01:11:55.760
and Todd Klick Jr. Yeah,
this week, what a crazy end

1013
01:11:55.800 --> 01:11:59.439
to it. I mean we were
just bound to trade lower and lower,

1014
01:11:59.439 --> 01:12:02.680
and then the last thirty minutes we
finished the week with a huge rally and

1015
01:12:02.960 --> 01:12:06.399
still finished the week lower for all
the major indacies, but almost got back

1016
01:12:06.439 --> 01:12:09.680
to break even. Yeah, a
few minutes after the close, you walked

1017
01:12:09.680 --> 01:12:11.760
into my office because you had been
in the meeting. You walked in my

1018
01:12:11.760 --> 01:12:15.439
mouth, go what happened? Yeah, my gunness, I could not believe

1019
01:12:15.600 --> 01:12:18.880
the it was a huge reversal.
I was really expecting it to start on

1020
01:12:18.920 --> 01:12:21.880
Monday, and for it to start
on late Friday was a surprise. We

1021
01:12:21.920 --> 01:12:27.359
talked in the first hour about the
financial planning process and what that looks like.

1022
01:12:27.479 --> 01:12:30.479
How you call, you set up
an appointment, todd, you send

1023
01:12:30.479 --> 01:12:34.039
them homework to do, send the
person homework to do, because you gotta

1024
01:12:34.119 --> 01:12:38.840
know you're gonna have details, and
there is gonna be some work involved on

1025
01:12:38.880 --> 01:12:42.000
your part, not you, but
on the client's part. There's definitely gonna

1026
01:12:42.000 --> 01:12:45.439
be some work involved because we gotta
we gotta know what you have right,

1027
01:12:45.439 --> 01:12:48.479
I know where it is, what
you're doing to protect yourself. If anything,

1028
01:12:49.239 --> 01:12:56.159
so Youdays can actually make these sensible
suggestions of changes that can be made

1029
01:12:56.159 --> 01:13:01.199
in their life. One of the
things a Dean off and is that when

1030
01:13:01.199 --> 01:13:04.359
a client, when you have let's
say you've you've met with the client,

1031
01:13:04.439 --> 01:13:11.159
you've you've gotten the information, you've
worked up the proposal. Client comes in,

1032
01:13:11.600 --> 01:13:14.800
you give them the proposal, They
take the proposal home, and a

1033
01:13:14.840 --> 01:13:16.000
week late it call and go,
you know what, this makes all the

1034
01:13:16.039 --> 01:13:18.760
sense in the world. I want
to do this. Then you bring it

1035
01:13:18.840 --> 01:13:23.920
back in and you implement it.
What's that look like? Paperwork? Really,

1036
01:13:24.119 --> 01:13:26.760
you just come in, we start
the transfer process our back office.

1037
01:13:26.760 --> 01:13:30.640
We'll talk with whatever back office you're
currently at. And if it's a four

1038
01:13:30.680 --> 01:13:32.239
O on K we got to call
a company with you, well issue the

1039
01:13:32.319 --> 01:13:35.720
check. None of it's a taxable
event, and we'll have the accounts open

1040
01:13:35.760 --> 01:13:40.680
and it'll roll right into it and
it'll be simple at that point, and

1041
01:13:40.760 --> 01:13:45.319
the and the allocation who decides how
the assets will be allocated. Yeah,

1042
01:13:45.399 --> 01:13:49.279
so it's a team approach, but
it's ultimately also up to the client because

1043
01:13:49.319 --> 01:13:53.800
how they answer the risk score is
ultimately how we're going to be building out

1044
01:13:53.800 --> 01:13:57.640
the portfolio. Also, our job
is to understand if their goals, you

1045
01:13:57.680 --> 01:14:00.960
know, based on their goals,
that gives you a timeline on how you

1046
01:14:00.039 --> 01:14:02.640
need to be investing. For example, if we know we have college in

1047
01:14:02.680 --> 01:14:05.800
five years to spend on that we
need to spend on, we can't be

1048
01:14:05.880 --> 01:14:09.800
super aggressive with those accounts. But
if we have twenty years until we have

1049
01:14:09.800 --> 01:14:13.159
to spend on college, well then
we can be more aggressive. So timeframe

1050
01:14:13.960 --> 01:14:16.239
in relation to the goal matters.
But then also on top of that just

1051
01:14:16.399 --> 01:14:19.039
pure risk times, how much can
you take the ups and downs of the

1052
01:14:19.079 --> 01:14:23.920
market, And then ultimately, once
we've all come to an agreement on your

1053
01:14:24.000 --> 01:14:28.000
risk level, your goals, and
we come to you and show you the

1054
01:14:28.039 --> 01:14:31.680
best way to implement a plan and
implement a portfolio and show you what that

1055
01:14:31.720 --> 01:14:35.359
looks like, the percentage between stocks
and bonds, whether it's mutual funds,

1056
01:14:35.399 --> 01:14:39.840
whether it's ets, whether it's a
combination of the two, or even using

1057
01:14:39.880 --> 01:14:45.479
individual stocks and bonds and using proactive
strategies. It depends on the account what

1058
01:14:45.560 --> 01:14:48.960
the goals are and what the risk
of the client is. But then ultimately,

1059
01:14:49.039 --> 01:14:54.920
once we come to a decision and
a plant, the implementation normally takes

1060
01:14:54.960 --> 01:15:00.319
about four months because we never just
put everyone to come into the market.

1061
01:15:00.600 --> 01:15:02.439
Or if we say the model that
they should be invested in it is a

1062
01:15:02.520 --> 01:15:06.680
sixty forty, we're not going to
put all sixty percent of their portfolio into

1063
01:15:06.760 --> 01:15:11.920
the market right away. Well,
dollar cost average that equity portion over a

1064
01:15:11.960 --> 01:15:16.199
four month period. The reason that's
important is because the sequence of returns dollar

1065
01:15:16.239 --> 01:15:20.720
cost averaging is the way to get
the best average price over a period time.

1066
01:15:21.000 --> 01:15:26.039
All studies show this because when you
instead put all the money that you

1067
01:15:26.119 --> 01:15:28.600
have that you want to put to
work into the market, all at once,

1068
01:15:28.880 --> 01:15:31.039
well, then you're subject to the
return from the market from that point

1069
01:15:31.079 --> 01:15:34.319
on. And that's it. Where
if you're doing it over a four month

1070
01:15:34.399 --> 01:15:39.439
period, you're dividing the entire value
that you want into the stock market by

1071
01:15:39.439 --> 01:15:43.359
twenty five percent. You're doing that
over each month for four months. Well,

1072
01:15:43.359 --> 01:15:45.760
then in theory, either the market
goes down over the four months or

1073
01:15:45.960 --> 01:15:49.399
keeps gy rating, you're getting an
average price that is better than putting in

1074
01:15:49.439 --> 01:15:54.000
all the work all at once.
And we do that with the equity side,

1075
01:15:54.079 --> 01:15:56.239
like you were saying, with the
fixed income side, if we're buying

1076
01:15:56.279 --> 01:16:00.520
individual bonds, we are filling up
that fixed income bucket right away way to

1077
01:16:00.600 --> 01:16:03.119
take advantage of the interest rates that
day. We don't want a dollar cost

1078
01:16:03.199 --> 01:16:08.159
average in the fixed income because you
ever know what fixed income like interest rates.

1079
01:16:08.399 --> 01:16:10.800
Right now, we're buying a lot
of treasures because the interest rates are

1080
01:16:10.840 --> 01:16:13.960
high. For once from now interest
rates might be lower. So we missed

1081
01:16:14.000 --> 01:16:15.840
out on that. So if a
fixed income bucket, we will put it

1082
01:16:15.880 --> 01:16:19.119
in right away one hundred percent.
But there is also scenarios where if you

1083
01:16:19.239 --> 01:16:24.920
come into opening an account and it's
one week out from the Federal Reserve saying

1084
01:16:24.960 --> 01:16:29.159
something about interest rates will hold off, right, So it's not always about

1085
01:16:29.159 --> 01:16:31.079
a four month it's like once we
fill the bucket up, and yeah,

1086
01:16:31.119 --> 01:16:36.000
exactly, we're more picking points for
the for the fixed income side of things,

1087
01:16:36.000 --> 01:16:40.680
where the equity we're trying to be
more systematic because it's there's too much

1088
01:16:40.760 --> 01:16:44.840
volatility and equity markets to try to
try to time the market perfect. It's

1089
01:16:44.840 --> 01:16:47.000
just not going to happen. So
being able to dollar cost average gets you

1090
01:16:47.000 --> 01:16:50.800
a better average price. And then
ultimately once it's fully invested, after that

1091
01:16:50.840 --> 01:16:56.800
four months, we're rebalancing probably once
or twice a year. But then depending

1092
01:16:56.880 --> 01:17:00.159
on the account, we're actively managing
it. So there's some accounts that are

1093
01:17:00.199 --> 01:17:02.359
based on models that we're only probably
touching three to four times a year,

1094
01:17:02.479 --> 01:17:06.279
where there's other accounts where it takes
more day to day operations. And it

1095
01:17:06.439 --> 01:17:10.840
depends again on the goals of the
account. What are the objectives of the

1096
01:17:10.880 --> 01:17:14.359
account. Am I needing to send
income each month or is this an account

1097
01:17:14.359 --> 01:17:16.840
that's designed to grow over the next
forty years. It all depends yep.

1098
01:17:17.239 --> 01:17:20.319
And like we said before, is
that we're all looking at these accounts all

1099
01:17:20.359 --> 01:17:24.560
the time, so we're all on
top of what's going on, and we

1100
01:17:24.640 --> 01:17:27.359
know exactly how what's going on with
each account, whether they do need income

1101
01:17:27.439 --> 01:17:29.560
or just want it to grow.
The cool thing with our team is you're

1102
01:17:29.560 --> 01:17:33.159
working with five different advisors, and
ultimately most places where you go to you're

1103
01:17:33.159 --> 01:17:36.760
going to work with one and that
means you're subject to one person's opinion about

1104
01:17:36.760 --> 01:17:41.920
the markets. When you get five
different opinions, you get five different perspectives.

1105
01:17:42.159 --> 01:17:45.680
You can really have the trust to
know this one person I'm working with

1106
01:17:45.800 --> 01:17:49.840
that any one human can get blinded
by emotion, by political party, by

1107
01:17:50.239 --> 01:17:56.920
what you think should happen based on
economic reports. Being able to have you

1108
01:17:56.960 --> 01:18:00.680
know, Dylan tell me I'm wrong, or you know you me I'm right.

1109
01:18:00.079 --> 01:18:06.039
Having that either contradiction or validation allows
us to be more certain about what

1110
01:18:06.039 --> 01:18:09.000
we're doing for our clients at the
end of the day. Also, the

1111
01:18:09.079 --> 01:18:12.680
nice part about having all five of
us know what's going on is if one

1112
01:18:12.760 --> 01:18:15.600
of us is out of the office, four more people know what's going on

1113
01:18:15.640 --> 01:18:17.239
with your account. So it's not
like your advisor's out of the office on

1114
01:18:17.319 --> 01:18:20.000
vacation you can't talk to them for
two weeks. You can't you don't know

1115
01:18:20.039 --> 01:18:23.800
what's going You can't touch your account
in a sense, A lot of touch

1116
01:18:23.800 --> 01:18:25.960
it at any point here. Yeah, it's like a lot of people sometimes

1117
01:18:25.960 --> 01:18:28.520
come in and they're like, they're
so used to the one advisor mindset.

1118
01:18:28.520 --> 01:18:30.800
They're like, but who am I
working with? It's like, it's not

1119
01:18:30.840 --> 01:18:33.000
how we work here. We don't. We're not an individualized pace. Some

1120
01:18:33.039 --> 01:18:36.079
people they need to have just one
person they call to every day. That's

1121
01:18:36.119 --> 01:18:40.359
fine, but ultimately, even if
you're calling just one person, you're not

1122
01:18:40.439 --> 01:18:43.359
just working with that one person.
You truly are that one person is working

1123
01:18:43.359 --> 01:18:45.239
with all of us still. You
just might only be talking to that one

1124
01:18:45.239 --> 01:18:49.680
person, right, And everybody has
a different risk temperament. I have a

1125
01:18:49.760 --> 01:18:55.479
ninety four year old client who's constantly
urging me to be more aggressive, and

1126
01:18:56.600 --> 01:19:00.439
obviously I'm going to do what's best
for him, which is probably not pedal

1127
01:19:00.520 --> 01:19:05.239
to the metal. He feels that
way, I think because his money is

1128
01:19:05.279 --> 01:19:10.439
all ultimately going to a charity.
His wife has passed away, he doesn't

1129
01:19:10.439 --> 01:19:14.119
have any children, and so he's
thinking, what the heck tee it up

1130
01:19:14.399 --> 01:19:16.439
by lose half of it? Who
cares? Well? I care? You

1131
01:19:16.479 --> 01:19:21.680
know, you worked hard, your
entire life to get this nest egg,

1132
01:19:21.720 --> 01:19:26.039
and we're going to try to protect
us the best we can. I have

1133
01:19:26.159 --> 01:19:30.920
clients in their thirties who won't do
anything but certificates of deposits. They just

1134
01:19:30.000 --> 01:19:34.079
have no risk tolerance. That's not
a good thing or a bad thing.

1135
01:19:34.319 --> 01:19:40.199
But it's our job, and a
job probably we work harder at than anything

1136
01:19:40.239 --> 01:19:44.640
else, is trying to make sure
that your risk tolerance and your portfolio match

1137
01:19:44.720 --> 01:19:48.000
up. And right now, for
people who want preservation of principle, it's

1138
01:19:48.000 --> 01:19:53.199
never been a better time. Just
don't go into products that you're just so

1139
01:19:53.439 --> 01:19:58.760
traditionally accustomed to. There's better products, especially now when interest rates are higher.

1140
01:19:59.000 --> 01:20:00.159
So many people who'll be like,
yeah, I got a CD that's

1141
01:20:00.159 --> 01:20:03.840
paying me four point five thinking that
that's the best rate in the marketplace right

1142
01:20:03.920 --> 01:20:06.520
now. Sure, And also CDs
come with their own bales and whistles and

1143
01:20:06.640 --> 01:20:10.760
not able to take out right away
or you lose interest in all kinds of

1144
01:20:10.800 --> 01:20:14.720
you know, things like that you
can get mygas multi year guaranteed annuities that

1145
01:20:14.760 --> 01:20:18.239
are currently paying five point six percent
guaranteed for five years. Right there's not

1146
01:20:18.279 --> 01:20:21.439
going to be a CD that's going
to be guaranteed for five years around them,

1147
01:20:21.479 --> 01:20:26.000
and if it is, it's probably
a pretty shaky bank then to begin

1148
01:20:26.039 --> 01:20:29.600
with. Yeah, and that's compounding
as well, right, and so me,

1149
01:20:29.880 --> 01:20:31.720
that's just a guarantee. You know
what you're getting. It's a very

1150
01:20:31.720 --> 01:20:35.800
simple there's fixed index annuities, which
we talk a lot about news on the

1151
01:20:35.800 --> 01:20:41.239
show, but there's never in terms
of relativeness. In the last twenty years

1152
01:20:41.279 --> 01:20:43.720
of buying an annuity, I don't
think there's ever been a better time to

1153
01:20:43.720 --> 01:20:47.720
buy annuity because annuity companies can offer
you the best products, the best caps,

1154
01:20:47.760 --> 01:20:51.399
the best fees, the best everything
when interest rates are high, because

1155
01:20:51.439 --> 01:20:56.039
then they don't have as much risk
on their books in case something goes wrong,

1156
01:20:56.239 --> 01:20:59.760
especially if you're looking for an alternative
to a fixed income or an alternative

1157
01:20:59.800 --> 01:21:03.000
to a CD. You talked about
four and a half percent. That's probably

1158
01:21:03.039 --> 01:21:11.119
a pretty generous CD rate five point
six on the MYGA tax deferred. You

1159
01:21:11.279 --> 01:21:15.039
choose one to pay tax. That's
a nice flexibility. You get a there's

1160
01:21:15.079 --> 01:21:19.399
no cost involved, you get a
one percent more per year in interest,

1161
01:21:19.680 --> 01:21:25.000
and you control the taxes. These
products can be used for iras, they

1162
01:21:25.000 --> 01:21:29.680
can satisfy rm ds and it won't
be you won't be charged any surrender penalties.

1163
01:21:30.119 --> 01:21:32.439
So there's just you're still able to
take out ten percent if you need

1164
01:21:32.479 --> 01:21:35.359
to any given year and you're not
going to get penalized and have you take

1165
01:21:35.359 --> 01:21:39.479
any interest each year if you don't. If you want to having the client's

1166
01:21:39.560 --> 01:21:45.079
risk profile and their risk tolerance and
their portfolio matchup, how do we go

1167
01:21:45.119 --> 01:21:51.199
about making sure that happens? Well, it's so you're asking me, how

1168
01:21:51.239 --> 01:21:55.239
do I make sure that the risk
tolerance of a client matches up with the

1169
01:21:55.319 --> 01:21:59.880
risk talents of a portfolio that we're
managing? Yes, yes, okay,

1170
01:21:59.880 --> 01:22:03.359
So it will depend on a couple
approaches. First of all, making sure

1171
01:22:03.359 --> 01:22:08.000
that the client agrees with their risk
tolerance. Sometimes you have to retake it

1172
01:22:08.199 --> 01:22:10.479
if it comes out in an eighty
and they're like, no, I'm super

1173
01:22:10.479 --> 01:22:13.119
conservative. It's like okay, well
then why did you answer the questions like

1174
01:22:13.199 --> 01:22:16.520
this? So there is some discussion
that first, making sure that they agree

1175
01:22:16.560 --> 01:22:19.840
with their risk level. I mean
that's where we're we need agree on what

1176
01:22:19.880 --> 01:22:24.399
your risk level is before we start
the portfolio. And then ultimately it goes

1177
01:22:24.439 --> 01:22:27.319
into what have they been doing right? Right? And then also ask them

1178
01:22:27.359 --> 01:22:30.359
questions like if you're driving on the
highway, are you are you the person

1179
01:22:30.399 --> 01:22:32.960
that's driving above the speed limit or
below? And why right? And certain

1180
01:22:33.039 --> 01:22:36.960
questions beyond finance that really helps me
understand what type of risk they are as

1181
01:22:36.960 --> 01:22:41.920
an individual, because then once we've
agreed upon the risk and what your goals

1182
01:22:41.960 --> 01:22:45.800
of the return, what type of
income you need, then it's my job

1183
01:22:45.840 --> 01:22:48.399
to make sure that you're allocated correctly. Because we have systems and processes here

1184
01:22:48.800 --> 01:22:51.800
with technology, it allows us that
alerts us, hey, this person should

1185
01:22:51.800 --> 01:22:56.079
be twenty percent growth, they're only
fifteen. You need to be doing something.

1186
01:22:56.159 --> 01:22:59.119
Or this person's supposed to be sixty
forty, but they really got seventy

1187
01:22:59.119 --> 01:23:00.720
percent equity. It's time to parry
it back a little bit. So,

1188
01:23:01.199 --> 01:23:05.439
you know, technology makes it capable
for us to manage a thousand accounts we

1189
01:23:05.479 --> 01:23:09.479
have right, and we have a
risk profile questionnaire that we go through with

1190
01:23:09.520 --> 01:23:12.039
a client and that'll give us a
goal. And then you look at it

1191
01:23:12.079 --> 01:23:15.640
and say, okay, what have
you been doing? Okay, the risk

1192
01:23:15.680 --> 01:23:19.479
profile is conservative, what they've been
doing elsewhere is conservative. That's a good

1193
01:23:19.560 --> 01:23:25.319
match. And then the things I
developed over the years, do you skydive.

1194
01:23:25.399 --> 01:23:29.199
Have you ever skydive? What speed? Like Todd said, what's when

1195
01:23:29.239 --> 01:23:32.720
you drive to Phoenix? What speed
do you drive? Do you drive seventy

1196
01:23:32.800 --> 01:23:36.399
do your seventy five eighty eighty five
fast as you can, as slow as

1197
01:23:36.399 --> 01:23:41.000
you can? You know, how
do you do you own a motorcycle?

1198
01:23:41.439 --> 01:23:45.680
I mean what kind of risk are
you taking in your life? And all

1199
01:23:45.760 --> 01:23:48.800
of those things come into play the
questionnaire, the way you're living your life,

1200
01:23:48.960 --> 01:23:54.520
the types of investments you have elsewhere, And that's the most important thing

1201
01:23:54.560 --> 01:23:59.680
we do is match up your portfolio
with your risk tolerance, because if we

1202
01:23:59.720 --> 01:24:02.439
do that, you'll be able to
ride through the inevitable dips that come along.

1203
01:24:02.800 --> 01:24:06.119
And we'll be back with the last
segment right after this break. Thanks

1204
01:24:06.199 --> 01:24:10.119
again for listening to us. This
is the Moneymatter Show. Welcome back to

1205
01:24:10.119 --> 01:24:12.680
the Money Matter Show. My name
is Tod Lick. I'm here with Dylan

1206
01:24:12.720 --> 01:24:15.359
Greenberg, Sebastian Boars Scenior, and
David Sherwood. It's been a fun week

1207
01:24:15.680 --> 01:24:20.840
ups and downs from the financial markets
to the political world to not much news

1208
01:24:20.840 --> 01:24:25.399
coming out of the wars going on. But I did see one thing about

1209
01:24:25.600 --> 01:24:31.199
Biden saying that Ukraine is allowed to
use US missiles on Russian strikes, but

1210
01:24:31.279 --> 01:24:34.319
limitedly. And I was like,
oh my goodness, why would he say

1211
01:24:34.359 --> 01:24:39.720
that. Why does he need to
escalate a war that seems like it just

1212
01:24:39.720 --> 01:24:43.159
wants to go away? Oh man, I don't know if there is a

1213
01:24:43.159 --> 01:24:46.880
way to make it go away.
Putin's ego it's just so strong. I

1214
01:24:47.279 --> 01:24:54.159
don't Zelensky wanted to talk at one
point, that would be great. I

1215
01:24:54.319 --> 01:24:56.800
know. I'm pretty sure they did. They did want to talk. It

1216
01:24:56.840 --> 01:25:00.279
was Boris Johnson that came in and
said no, right before he got kicked

1217
01:25:00.319 --> 01:25:02.680
out. They slid that news article
in during that Trump trial when all of

1218
01:25:02.680 --> 01:25:04.920
that stuff was coming out, so
it seemed like they were again they're just

1219
01:25:04.960 --> 01:25:10.479
trying to hide it under the under
the rod. Putin knows so that we

1220
01:25:10.520 --> 01:25:14.600
don't have the patients for this sort
of thing, so he and he does,

1221
01:25:15.239 --> 01:25:16.199
so he does. You're just keeping
at it, keeping at it.

1222
01:25:16.279 --> 01:25:20.880
Eventually, the world's going to quit
pan attention because they've lost interest. Well,

1223
01:25:21.079 --> 01:25:26.079
the US won't stop pants itself.
Their nightclub is at its highest point.

1224
01:25:26.359 --> 01:25:29.119
Yeah, I saw that too.
Their night club scene, the like

1225
01:25:29.159 --> 01:25:32.720
whole bar scene is just thriving.
Really, our time. Really looks like

1226
01:25:32.760 --> 01:25:36.560
nothing's going on. All the American
money that's been sent over there, yep.

1227
01:25:36.800 --> 01:25:40.039
So I think they got bored themselves. I think I saw a picture

1228
01:25:40.039 --> 01:25:45.199
of you know, I think of
this past week. UPS. UPS used

1229
01:25:45.199 --> 01:25:49.359
to be seen as a barometer of
the US economy because there's you know,

1230
01:25:49.520 --> 01:25:54.720
so many deliveries, But after hitting
an all time high in early twenty two,

1231
01:25:54.760 --> 01:25:59.520
the stock has been moving steadily lower, down more than forty percent from

1232
01:25:59.520 --> 01:26:02.720
that high. Despite a growing economy. As a stock is struggling with a

1233
01:26:02.800 --> 01:26:09.279
dramatic increase in competition and rising wages. Hit a seven month low last week.

1234
01:26:09.560 --> 01:26:12.720
Looks like it wants to go lower. And I thought to myself as

1235
01:26:12.760 --> 01:26:15.279
I was reading that article, Yeah, I'm thinking, in my neighborhood,

1236
01:26:15.399 --> 01:26:19.680
how many times do I see the
Amazon truck versus how many times I see

1237
01:26:19.720 --> 01:26:26.479
the UPS trucks. I see the
Amazon truck a lot more than I see

1238
01:26:26.479 --> 01:26:30.920
the UPS truck. So, if
you're following UPS as a barometer of the

1239
01:26:30.039 --> 01:26:34.640
US economy, I think FedEx is
still a pretty good gauge of the global

1240
01:26:34.680 --> 01:26:41.680
economy. But UPS is no longer
really a gauge of the US economy.

1241
01:26:42.359 --> 01:26:45.399
Texas Instruments. You know, we
we've commented on this show over the past

1242
01:26:45.479 --> 01:26:51.039
few months that this stock is just
not participating in the rally. The chip

1243
01:26:51.079 --> 01:26:55.800
stocks are setting new all time highs, and you know, Texas Instruments just

1244
01:26:55.880 --> 01:26:58.359
kind of plugging along. And I
think they were up three or four percent

1245
01:26:58.399 --> 01:27:02.000
for the year because all they make
is cocka that's it. They don't make

1246
01:27:02.079 --> 01:27:08.079
nothing. They make a lot of
trips, you know, Calculator. They

1247
01:27:08.159 --> 01:27:15.039
didn't. God, are you saying
that Xerox this is Xerox revisited. Uh,

1248
01:27:15.079 --> 01:27:18.199
they did come out with a strong
earnings report last week, solid guidance

1249
01:27:18.239 --> 01:27:24.520
ignited in a nice rally. Stocks
thirteen percent higher in the last thirty days

1250
01:27:24.840 --> 01:27:30.600
and hit a new all time high
on Tuesday on news at that activist Elliott

1251
01:27:30.720 --> 01:27:35.079
Management has taken a two point five
billion dollars stake in the company. Had

1252
01:27:35.079 --> 01:27:39.680
to put that Disney money somewhere right
exactly. And that's one of the things

1253
01:27:39.680 --> 01:27:45.600
that you know that we've been saying
all along, is that is that this

1254
01:27:45.640 --> 01:27:47.680
stock isn't performing a way it should. Somebody used to get in there and

1255
01:27:47.720 --> 01:27:50.319
shake it up. What happened with
the Best Buy this week? Why were

1256
01:27:50.359 --> 01:27:58.800
they best Buy is getting a lot
of love because the we're about to embark

1257
01:27:58.960 --> 01:28:04.680
on a refurbishinge of every personal computer
in the country as they all go AI,

1258
01:28:05.039 --> 01:28:09.079
and they're going to be expensive.
These laptops is gonna be a thousand

1259
01:28:09.119 --> 01:28:13.439
bucks huh for these AI laptops.
Okay again, Dave, If I'm buying

1260
01:28:13.439 --> 01:28:16.840
an AI laptop, I definitely will. I'm probably not going to Best Buy.

1261
01:28:17.239 --> 01:28:20.680
A lot of people will. Then
that's they're seeing as the primary beneficiary

1262
01:28:20.680 --> 01:28:25.039
of this. Interesting, that's why
why like disagree. Brick and mortars aren't

1263
01:28:25.119 --> 01:28:27.760
can't be doing too well, can
they? Yeah, that's why they're doing

1264
01:28:27.840 --> 01:28:30.600
it. I thought it would just
be online. Now it's not. Well.

1265
01:28:30.600 --> 01:28:34.960
The stock jump ten percent on Thursday
after a good a good report,

1266
01:28:35.039 --> 01:28:42.079
but not great report, and the
thinking picked up a bunch of analyst love

1267
01:28:43.159 --> 01:28:47.279
on this AI referb be machine of
computers. They're expected to do really,

1268
01:28:47.319 --> 01:28:50.680
really well. And yes, maybe
you young guys are going to go somewhere

1269
01:28:50.680 --> 01:28:54.880
else, but a lot of folks
are expected to go to Best Buy where

1270
01:28:54.880 --> 01:28:57.479
they can actually look at it and
touch it. And well, you go

1271
01:28:57.520 --> 01:29:00.520
to Costco. Yeah, that's you
go to Costco. Right, I mean

1272
01:29:00.560 --> 01:29:03.760
you're just talking about how much everyone
goes at Costco Apple Benefit. It's probably

1273
01:29:03.800 --> 01:29:06.800
you go to Most people would go
to Costco, and the young people who

1274
01:29:06.800 --> 01:29:10.399
don't have Costco manbership, they're going
to go to their bookstore. I they

1275
01:29:10.439 --> 01:29:13.640
got it on top of the Costco
would give you that great warranty for the

1276
01:29:13.760 --> 01:29:15.520
rest of its life. Yeah,
I don't know that best Buy will.

1277
01:29:15.600 --> 01:29:18.920
Last time that I was in the
best Buy personally were I was buying an

1278
01:29:18.920 --> 01:29:23.680
iPad here because we were rifling it
off at the fire health and wellness event,

1279
01:29:23.840 --> 01:29:27.239
and I had a swarm of about
five or six employees swarm up to

1280
01:29:27.279 --> 01:29:30.000
me just because I was the one
person that they probably saw that whole week.

1281
01:29:31.560 --> 01:29:34.920
I just don't see that many people
that go to best Buy or why

1282
01:29:34.960 --> 01:29:39.039
why why would I go to best
Buy if I could just buy it online.

1283
01:29:39.119 --> 01:29:43.079
I've never bought a computer anywhere but
best Buy. You would go to

1284
01:29:43.079 --> 01:29:45.439
the best Buy so you could touch
it, feel it. I don't think

1285
01:29:45.479 --> 01:29:48.199
Fry's Electronics is going to stay around
for too much longer either. There's an

1286
01:29:48.199 --> 01:29:51.079
awful lot of analyst that disagree with
you, guys. Okay, that's all

1287
01:29:51.079 --> 01:29:54.680
I'm saying. Well, they also
disagreed with CVS, and we see where

1288
01:29:54.680 --> 01:29:59.439
that's going with who CVS they did, they thought that's a good business model.

1289
01:29:59.479 --> 01:30:02.520
Abs, I don't know. Twenty
five years low a cava grill?

1290
01:30:02.800 --> 01:30:05.800
Have you got there isn't a Cappa
grilling? Oh you love cava? No,

1291
01:30:05.880 --> 01:30:08.960
I don't love cava? Is their
caba grill? And is there a

1292
01:30:09.039 --> 01:30:14.239
Coppa grill? And Phoenix probably?
Phoenix Probably. It's one of the fastest

1293
01:30:14.239 --> 01:30:17.760
growing franchise restaurants in the country,
seeing their stock double in the last eleven

1294
01:30:17.840 --> 01:30:23.520
months, opened down five percent on
Wednesday. They gave a solid earnings report

1295
01:30:23.560 --> 01:30:29.399
but disappointing guidance as we continue to
hear about consumers pulling back. The stock

1296
01:30:29.439 --> 01:30:31.279
opened down five percent, but it
did bounce back that very same day to

1297
01:30:31.359 --> 01:30:35.359
a new all time high. If
you haven't been to a Cava, think

1298
01:30:35.520 --> 01:30:43.079
Chipotle instead of tortilla is you're going
to have Peter bread and instead of Mexican

1299
01:30:43.119 --> 01:30:46.880
cuisine, you're gonna have Mediterranean cuisine. That's all. And honestly, I

1300
01:30:46.920 --> 01:30:51.119
was in one and it looked just
like a Chipotle, but the flavors are

1301
01:30:51.119 --> 01:30:55.279
really good. That's Dylan. That's
interesting. You'd say that because when I

1302
01:30:55.319 --> 01:30:58.680
went into the one in Orange County
and I was just checking it out.

1303
01:30:58.720 --> 01:31:00.279
I wasn't needy. I just check
it out cause I just picked up salvage

1304
01:31:00.319 --> 01:31:02.800
next door, and I know there's
a copa girl. I wanted to see

1305
01:31:02.800 --> 01:31:05.520
what it was like. And I
went in and I said to the lady.

1306
01:31:05.560 --> 01:31:08.840
There was a lady in line with
her two kids, and I said,

1307
01:31:09.239 --> 01:31:14.720
looks like a Chipotle for Mediterranean cuisine, and she goes, yes,

1308
01:31:14.800 --> 01:31:19.159
but the flavors are so incredible.
Okay, I don't know why they're dou

1309
01:31:19.720 --> 01:31:23.560
I don't know. Chipotle is a
good stock too. I was in Colorado.

1310
01:31:23.640 --> 01:31:26.359
Company models, price is good.
I was in Colorado for this last

1311
01:31:26.359 --> 01:31:30.000
weekend and I saw maybe two or
three cavas up there, two or three

1312
01:31:30.039 --> 01:31:32.840
combas in. We'll get one here
eventually. Yeah, and I'm going to

1313
01:31:32.920 --> 01:31:36.680
try it. Speaking of food,
in a recent landing Tree survey, get

1314
01:31:36.680 --> 01:31:42.199
this, eight out of ten people
surveyed said they view fast food as a

1315
01:31:42.279 --> 01:31:45.800
luxury. Yeah, I saw it. Eight out of ten, and sixty

1316
01:31:45.880 --> 01:31:53.000
two percent said that they're eating less
often because prices have gone up, because

1317
01:31:53.000 --> 01:31:55.199
it's like you used to just get
fast food because you're like, oh,

1318
01:31:55.199 --> 01:31:58.039
it's okay. I know it's not
good quality, but it's three dollars a

1319
01:31:58.079 --> 01:32:00.039
burger. Yeah, but now it's
nine dollars of You're like, I might

1320
01:32:00.079 --> 01:32:03.840
as well pay two extra bucks to
go get actual, good quality food.

1321
01:32:04.159 --> 01:32:08.800
My my wife when she when she
doesn't have time in the morning to make

1322
01:32:08.880 --> 01:32:12.880
herself breakfast, will stop and get
an egg McMuffin or something at at McDonald's.

1323
01:32:13.319 --> 01:32:15.479
And for the last couple of months, he's been complaining to me about

1324
01:32:15.520 --> 01:32:18.600
the prices. She said, I
can't believe how much the prices they have

1325
01:32:18.640 --> 01:32:25.479
gone up. They're bringing the value
menu back and we're starting to see that.

1326
01:32:25.720 --> 01:32:29.359
We're starting to see that across the
board with all of with a lot

1327
01:32:29.399 --> 01:32:33.640
of these companies bringing back value menus
and and yeah, there's a shrinkflation.

1328
01:32:33.840 --> 01:32:38.720
I mean there's just smaller products.
It's it's not like you have a lot

1329
01:32:38.720 --> 01:32:42.479
of companies out there trying to help
the consumer out and combat inflation. You

1330
01:32:42.479 --> 01:32:45.239
have like you just said, McDonald's
that's gonna come out with that. You

1331
01:32:45.279 --> 01:32:47.960
have Target that's lowering the prices on
thousands of items within their stores. And

1332
01:32:48.000 --> 01:32:55.479
you have I believe Uber is gonna
start implementing a different pricing method in order

1333
01:32:55.479 --> 01:32:58.880
to get better rates. Costco has
been one of the real leaders in this

1334
01:32:59.239 --> 01:33:02.760
where because they have the power to
say to their wholesaler, you're going to

1335
01:33:02.840 --> 01:33:05.119
keep the price, You're not going
to raise the price because we're not going

1336
01:33:05.199 --> 01:33:11.800
to buy it. So Costco really
has been an advocate for the consumer.

1337
01:33:11.880 --> 01:33:15.119
Well, as you said, the
Chicago p I showed prices are lowering as

1338
01:33:15.159 --> 01:33:17.479
a whole level, So potentially we're
seeing that and it sounds really good that

1339
01:33:17.520 --> 01:33:21.760
prices are going to go lower,
but that also means stocks got to go

1340
01:33:21.800 --> 01:33:25.600
lower if that's the case. I
was happy to see the first quarterly report

1341
01:33:25.680 --> 01:33:30.279
under the new CEO at the Costco
was good. If you, I don't

1342
01:33:30.279 --> 01:33:32.439
know how many of you remember we
talked about in the show here. The

1343
01:33:32.560 --> 01:33:38.960
new CEO of Costco has been with
the company for forty years. He started

1344
01:33:39.000 --> 01:33:42.560
as a forkliff driver. I did
not hear about that. I kind of

1345
01:33:42.600 --> 01:33:45.000
like that, kind of like that, that's that the company. That's kind

1346
01:33:45.039 --> 01:33:47.039
of a feel good story. He's
been Yeah, he's been there a while.

1347
01:33:47.680 --> 01:33:53.640
Yeah, Moderna but you remember them
from the pandemic, right, we

1348
01:33:53.680 --> 01:33:58.479
had Pfizer and Moderma, the food
and Drug Administration on Friday approved the RSV

1349
01:33:59.159 --> 01:34:02.840
vaccine for adults age sixty and above. I don't get how they can just

1350
01:34:03.000 --> 01:34:08.880
approve things after they start selling it. The didn't start selling it. It's

1351
01:34:08.920 --> 01:34:11.960
just been FD approved as a Friday. Well, no, because you could

1352
01:34:11.960 --> 01:34:15.000
get the vaccine and then they're like, okay, now it's actually FDA proved.

1353
01:34:15.279 --> 01:34:19.000
The FDA proved makes it more acceptable
to a certain group of the But

1354
01:34:19.399 --> 01:34:24.520
you know, I'm elderly and I
don't care anything about the RSV vaccine.

1355
01:34:24.640 --> 01:34:28.159
It was like a disease. It
didn't even exist a year ago. Crazy,

1356
01:34:28.840 --> 01:34:32.279
And so this is the company's second
product ever, right, And how

1357
01:34:32.319 --> 01:34:36.000
did the stock respond? It moved
six percent lower, because, okay,

1358
01:34:36.800 --> 01:34:41.640
let's step back and look at this. This company has two products, right,

1359
01:34:42.079 --> 01:34:46.479
a covid vaccine and an RSV vaccine. Now, I don't know about

1360
01:34:46.479 --> 01:34:51.239
you, but you're probably not going
to get rich. No. Were you

1361
01:34:51.279 --> 01:34:55.439
talking last week or maybe two weeks
ago about how they're going to group the

1362
01:34:55.479 --> 01:35:00.439
covid and flu vaccine together. That's
what Nova Vaccine working on with Senofi,

1363
01:35:00.600 --> 01:35:08.560
the French company, is putting together
a covid flu vaccine combination. And I'm

1364
01:35:08.600 --> 01:35:13.920
thinking that this country is really over
the whole covid vaccination thing, to the

1365
01:35:13.960 --> 01:35:15.960
point where if my flu shot has
covid in it, I don't want it.

1366
01:35:15.960 --> 01:35:19.000
I don't want it anymore. Yeah, but maybe that's what they want.

1367
01:35:19.279 --> 01:35:23.800
Well, we appreciate your joining us
on this Sunday morning. We appreciate

1368
01:35:23.800 --> 01:35:27.039
your listening. We wouldn't do this
if you weren't there. And if you

1369
01:35:27.079 --> 01:35:29.600
want a financial plan, this is
a great time of the year to do

1370
01:35:29.680 --> 01:35:32.159
it. Things quiet down. You
probably noticed over the Mormorial Day weekend the

1371
01:35:32.199 --> 01:35:36.479
town emptied out, which was kind
of cool. You could travel around and

1372
01:35:36.479 --> 01:35:41.439
go anywhere and eat and anyway.
You know, we all want to be

1373
01:35:41.479 --> 01:35:45.760
happy. Happy is super important,
and we all want to be healthy because

1374
01:35:45.800 --> 01:35:48.960
if we're not healthy, we're probably
not happy. But a Greenberg Financial group,

1375
01:35:49.000 --> 01:35:53.960
we're trying to be profitable. See
you next week.