New Year’s Eve Edition of The Money Matters Show!

WEBVTT 1 00:00:08.039 --> 00:00:11.160 Good morning, Welcome to The Money Matter Show. This is Dave Sherwood. 2 00:00:11.160 --> 00:00:15.679 I'm here with Todd Glick. I'm here with Sebastian Borsini. The Greenbergs are 3 00:00:16.920 --> 00:00:22.640 vacationing. I think Dean had put in a bid for a cruise before the 4 00:00:22.679 --> 00:00:27.160 pandemic, if I remember correctly, if I'm remembering this right, and this 5 00:00:27.239 --> 00:00:30.519 is the product of that. So anyway, it's a family cruise to celebrate 6 00:00:30.559 --> 00:00:35.399 a wife's important birthday. We won't talk about what birthday that is, but 7 00:00:35.479 --> 00:00:39.960 I think it's important that we on this New Year's Eve edition of The Money 8 00:00:40.000 --> 00:00:45.399 Matter Show, wish everyone a happy New Year. Guys got big plans, 9 00:00:45.679 --> 00:00:47.960 you know, you know what are you doing? Are you gonna go rip 10 00:00:47.960 --> 00:00:50.799 it up? Don Oh? Yeah? A couple of twenty two year olds 11 00:00:50.840 --> 00:00:54.159 here for sure? Are you Sebastian, I'm gonna go rip it up in 12 00:00:54.159 --> 00:00:56.679 Sedona? You are? Are you going to Sedona? Yep? Right off 13 00:00:56.719 --> 00:00:59.840 for the show. I had some friends that were in, uh, sed 14 00:01:00.119 --> 00:01:03.399 it for Christmas and it's a beautiful place. Yeah. I was hoping to 15 00:01:03.399 --> 00:01:06.120 get some snow, but I don't. I didn't see it in the forecast. 16 00:01:06.159 --> 00:01:10.519 So but they have weather very similar to Tushine, it's not. Many 17 00:01:10.519 --> 00:01:14.519 people don't like New Year's Eve, but it's one of my truly favorite holidays 18 00:01:14.519 --> 00:01:17.000 of the year. It is, and why is that me? It's the 19 00:01:17.079 --> 00:01:19.840 time where you get to reflect on all the work you put in, and 20 00:01:19.879 --> 00:01:23.799 for people who put in a lot of work in their lives, you get 21 00:01:23.840 --> 00:01:26.799 a little emotional when you look back on all the things you put in and 22 00:01:26.840 --> 00:01:29.840 all the things that you sacrificed, and you look at, oh, now 23 00:01:29.840 --> 00:01:33.439 you're what you're looking to do in the next year. That's what I love 24 00:01:33.480 --> 00:01:36.920 about New Year's Eve? Is it? Kind of It puts the end chapter 25 00:01:37.000 --> 00:01:40.519 in n piece, the last paragraph on the previous chapter, and it puts 26 00:01:40.519 --> 00:01:42.239 a title on the new chapter for the new year. So I just think 27 00:01:42.239 --> 00:01:47.519 it's a really good way to just, you know, have that renewal as 28 00:01:47.560 --> 00:01:51.439 the spirit needs, podcast kind of deflex, leave the baggage in twenty twenty 29 00:01:51.480 --> 00:01:53.799 three and move on right. Yep, Yeah, we would like twenty twenty 30 00:01:53.799 --> 00:01:59.079 three not to end. From a stock market point of view, it's been 31 00:01:59.239 --> 00:02:01.599 wonderful. Do you are you a new Year's resolution? Guy? I am 32 00:02:01.599 --> 00:02:06.079 a new Year's resolution. I haven't thought about my New Year's resolution just yet, 33 00:02:06.120 --> 00:02:07.639 though, to be honest with you, I thought about it several years 34 00:02:07.680 --> 00:02:10.639 ago. I put a lot of thought into this and realized that there really 35 00:02:10.759 --> 00:02:15.560 wasn't anything I could improve. So I decided that I would spend my time 36 00:02:15.000 --> 00:02:19.199 improving other people. Yeah, that's not worked out real well. It is 37 00:02:19.439 --> 00:02:27.120 a great narcissis right, and my new year. It's kind of like you 38 00:02:27.120 --> 00:02:29.840 asked me back in March what I've been giving up for lent and I said, 39 00:02:29.879 --> 00:02:34.240 being nice, be nice. I'm giving up being nice, so you 40 00:02:34.240 --> 00:02:38.199 guys do anything big. It was the first show since Christmas, A nice 41 00:02:38.199 --> 00:02:39.680 street day weekend. Yeah, you know, a great time with family. 42 00:02:39.759 --> 00:02:44.159 That's always the most important part of it. Fun gifts, fun to see 43 00:02:44.199 --> 00:02:46.840 other people get their gifts. And you were out in California. I was 44 00:02:46.879 --> 00:02:49.639 out in California with a couple of grandkids. That's always kind of fun. 45 00:02:49.680 --> 00:02:53.439 And I've been meaning to ask you how many how many electric vehicles did you 46 00:02:53.439 --> 00:02:58.520 counsel on your way up there? That didn't see many this time that I 47 00:02:58.599 --> 00:03:00.439 kept. You know, I've been saying, if that's been increasing each time? 48 00:03:00.479 --> 00:03:04.680 This time, I probably saw three, I think three or four out 49 00:03:04.680 --> 00:03:07.240 there in the middle of nowhere. Uh. And again, if you're out 50 00:03:07.240 --> 00:03:10.599 there between HeLa band and Youma, you're committed, You're you're doing this, 51 00:03:10.680 --> 00:03:14.599 You're doing this thing right, you know. So I saw an ev one 52 00:03:14.639 --> 00:03:19.039 time at Tesla in Pine Top. Okay, it's just like you're in it. 53 00:03:19.159 --> 00:03:23.840 Yeah. Our our client who actually is probably responsible for me owning an 54 00:03:23.840 --> 00:03:28.400 ev is ron, it took his up to Pine Top and was able to 55 00:03:28.479 --> 00:03:30.680 charge it up there. But yeah, it's it's a it's a it's just 56 00:03:30.719 --> 00:03:36.759 a different world. It's we did not take the ev over to Orange County. 57 00:03:37.159 --> 00:03:39.080 It's just a hassle at this point. It's just a hassle. And 58 00:03:39.120 --> 00:03:42.719 I think when they come up with one with a little bit longer range, 59 00:03:44.159 --> 00:03:47.039 I think it'll make a big difference. Toyota is talking about solid state batteries 60 00:03:47.039 --> 00:03:51.199 and we're starting to hear that from some of the other manufacturers now. And 61 00:03:51.520 --> 00:03:55.639 maybe the lithium ion technology that's been popular is going to go away. Maybe 62 00:03:55.680 --> 00:03:59.159 not. Well, we'll talk more. We'll talk. Okay, guess some 63 00:03:59.199 --> 00:04:01.000 stuff coming. Okay, you got some stuff. We always do. All 64 00:04:01.080 --> 00:04:05.039 I know is that that I've been around a few years and if I'm up 65 00:04:05.080 --> 00:04:09.520 at midnight on New Year's Eve. It's because I had to go to bathroom. 66 00:04:10.159 --> 00:04:15.479 Okay, that's that simple. It's it's just that simple. I was 67 00:04:15.040 --> 00:04:19.439 one thing about my trip to California. My daughter has two King Trials Spaniels, 68 00:04:19.480 --> 00:04:25.240 two dogs, and I was reminded when we were out on a walk 69 00:04:25.920 --> 00:04:30.560 that the dogs have a sense of smell that's ten thousand times as strong as 70 00:04:30.560 --> 00:04:33.319 ours. And and I'm a curious guy, right, so I'm thinking, 71 00:04:33.759 --> 00:04:36.639 who came up? Who came up with this? How do they know that? 72 00:04:38.199 --> 00:04:41.839 What dogs? What dog ratted the other dogs? Out right? I 73 00:04:41.839 --> 00:04:44.199 mean? What? Well? What is even ten thousand times the sense of 74 00:04:44.240 --> 00:04:46.519 our smell equate to like that? What's that means? That? Feel like? 75 00:04:46.639 --> 00:04:49.439 I mean, do you take like a steak and then move it back 76 00:04:49.519 --> 00:04:55.399 like a half an inches in case smell? Now, how do they know 77 00:04:55.480 --> 00:04:58.079 that? You know? And like so many things in life, how do 78 00:04:58.199 --> 00:05:00.680 they know? This doesn't seem like something you could on to fu It's hard 79 00:05:00.680 --> 00:05:02.759 to understand how they would know it. And by the way, I do 80 00:05:02.800 --> 00:05:05.879 have a cold. If I sound like I probably have the radio boy actually 81 00:05:05.920 --> 00:05:10.519 have a radio voice now, but I have a cold. So I apologize 82 00:05:10.560 --> 00:05:13.759 for any sneezing coffee and sniffling. You know what else? You got great 83 00:05:13.759 --> 00:05:15.519 face for radio? Yeah, I do have a great face for radio. 84 00:05:15.680 --> 00:05:19.519 I do think dogs can really they have an ability. I mean, if 85 00:05:19.519 --> 00:05:24.079 you had a test, you should be able to pretty easily find it out 86 00:05:24.879 --> 00:05:27.839 if having the dog goes to one door and where there's nothing behind one door, 87 00:05:27.839 --> 00:05:30.199 which one does it go to? It can tell which one and then 88 00:05:30.199 --> 00:05:32.560 you can start doing the distance. I'm actually stupid enough that I googled it 89 00:05:32.600 --> 00:05:36.680 all right, try to figure this out because I'm a curious guy right now. 90 00:05:36.879 --> 00:05:40.120 I couldn't come up with it. I just Google didn't have an answer. 91 00:05:40.199 --> 00:05:43.439 I know it. All I could. All I kept hearing is is 92 00:05:43.480 --> 00:05:47.279 ten thousand times as strong as ours, sensitive as ours? Be true, 93 00:05:47.279 --> 00:05:50.160 though, because those dogs, I mean, it'll be at your door before 94 00:05:50.199 --> 00:05:54.639 you even turn the corner into your neighborhood. Dogs can do some amazing things. 95 00:05:54.639 --> 00:06:00.639 When they talk about dogs that can actually smell medical issues, emotions, 96 00:06:00.680 --> 00:06:02.920 right, yeah, yeah, yeah. And I have a client who has 97 00:06:02.959 --> 00:06:09.600 a child who attends to have seizures in the middle of the night. And 98 00:06:09.639 --> 00:06:12.879 if you're sleeping soundly and your child's having a seizure, that's not a good 99 00:06:12.879 --> 00:06:16.800 thing. This dog is trained to recognize when the child is going to have 100 00:06:16.839 --> 00:06:20.600 a seizure. Then it starts barking yeah wow, like wow, that's just 101 00:06:21.040 --> 00:06:25.199 it's mind bogging. So there's no doubt in my mind that their sense of 102 00:06:25.240 --> 00:06:29.079 smell is dramatically beyond ours. I'm just just curious as to who comes up 103 00:06:29.079 --> 00:06:30.279 with this. But they don't understand tomorrow. I can tell you that, 104 00:06:30.439 --> 00:06:34.519 no, why not. There's no concept of no, no concept of tomorrow 105 00:06:34.639 --> 00:06:39.000 for a dog. It's just today. I like it. I like it. 106 00:06:39.120 --> 00:06:43.879 How about this market, it just continues to go. On Friday, 107 00:06:43.920 --> 00:06:46.199 it kind of stalled out a little bit. Looks like there was maybe going 108 00:06:46.279 --> 00:06:50.120 to be some year end profit taking, but a way it went again. 109 00:06:50.319 --> 00:06:55.920 Volume this week only fifty percent of normal volume. I kind of expected that, 110 00:06:56.199 --> 00:07:00.000 but we did have the S and P five hundred eke out the nine 111 00:07:00.240 --> 00:07:02.720 straight week, ninth straight week, first time in twenty years. I was 112 00:07:02.720 --> 00:07:04.759 looking at the charms just like as a ridiculous it looks like a tree. 113 00:07:05.079 --> 00:07:10.120 Nine consecutive weeks. Now. In all fairness, a couple of those weeks 114 00:07:10.160 --> 00:07:13.639 were like last week. Last week, they SMP was up fourteen points, 115 00:07:13.720 --> 00:07:17.240 and there was a week in that nine week string when it was up I 116 00:07:17.240 --> 00:07:20.279 remember it was up two points. Yeah, there was one week. But 117 00:07:20.480 --> 00:07:30.199 it has been an extraordinary year for particularly the magnificent seven stocks and you all 118 00:07:30.240 --> 00:07:32.399 know who they are, the Apples, the Facebook's, the Google so delivered 119 00:07:32.399 --> 00:07:36.160 an average return of one hundred and thirteen percent, Okay, more than doubles 120 00:07:36.240 --> 00:07:40.839 and and really that for that's just the average turn of the group that's of 121 00:07:40.879 --> 00:07:44.720 that was seven. Yeah, and that's that's that's what made this year so 122 00:07:44.839 --> 00:07:48.040 difficult from a money management point of view because it really skewed all of the 123 00:07:48.040 --> 00:07:51.639 averages, Dave. I mean that return of one hundred and thirteen percent is 124 00:07:51.720 --> 00:07:55.920 double what the Nasdaq one hundred is, which we know is probably one of 125 00:07:55.920 --> 00:07:59.279 the most faulatile ETFs you can be in correct. And then on top of 126 00:07:59.319 --> 00:08:03.759 that, it's that Magnificent seven delivered to return four point five times the S 127 00:08:03.800 --> 00:08:07.040 and P five hundred. So when you look at the fact that you have 128 00:08:07.160 --> 00:08:11.959 the Magnificent seven over four and a half times in performance in the S and 129 00:08:11.959 --> 00:08:15.480 P five hundred, it makes sense when you start looking at the RSP, 130 00:08:15.720 --> 00:08:18.959 seeing that it's only up twelve percent, year to date, when the S 131 00:08:18.000 --> 00:08:22.639 and P five hundreds up twenty four percent, RSP being equal weighted, where 132 00:08:22.639 --> 00:08:26.279 all five hundred stocks are given the same weight of eleven point eight percent. 133 00:08:26.439 --> 00:08:31.159 And I did a quick thumbnail thing with saying, if you had a balanced 134 00:08:31.159 --> 00:08:37.399 account. Now, balanced account traditionally is considered sixty percent equities forty percent fixed 135 00:08:37.399 --> 00:08:43.240 income. Right, So if you had in that balanced account of forty percent 136 00:08:43.240 --> 00:08:46.000 fixed income, I think it's fair to say that fixed income this year, 137 00:08:46.039 --> 00:08:52.159 even high quality bonds probably performed zero. You got paid five percent. They 138 00:08:52.159 --> 00:08:54.440 probably went down five percent because the interest rates went up, right. Yeah, 139 00:08:54.519 --> 00:08:58.879 maybe maybe it made one exact same You probably made your coupon, right, 140 00:08:58.919 --> 00:09:03.600 maybe one or two percent in the sixty percent, you probably have half 141 00:09:03.679 --> 00:09:09.919 of that in value and value stocks again dramatically underperformed up three point five percent 142 00:09:09.000 --> 00:09:16.159 for the year. Yeah, and the equal weighted up eleven point eight percent 143 00:09:16.360 --> 00:09:20.000 for the year. So if you if you meld all that together, you 144 00:09:20.080 --> 00:09:24.759 probably have a return of about five percent. Less management fees that you're paying, 145 00:09:24.320 --> 00:09:26.759 which will run one one and a half percent, you make three and 146 00:09:26.759 --> 00:09:31.000 a half four percent. And Deer said, I'm not happy my guy's not 147 00:09:31.080 --> 00:09:35.279 doing a good job. Well, your guy may be doing a great job. 148 00:09:35.480 --> 00:09:39.200 It's just if you were not in those seven stocks, you're not going 149 00:09:39.200 --> 00:09:43.360 to see the rates of return that you're seeing on TV. Well, it's 150 00:09:43.799 --> 00:09:46.519 well, go do the disclosure call. Have we got the disclaimer before? 151 00:09:46.559 --> 00:09:50.600 I forget? Pause here, tend to forget. The show is sponsored by 152 00:09:50.600 --> 00:09:54.639 the Greenbriak Financial Group and you can listen on seven ninety Cannisty or iHeartRadio. 153 00:09:54.200 --> 00:09:58.759 The show discusses different investment products and strategies. Every product and strategy have some 154 00:10:00.080 --> 00:10:03.000 type of inherent risk, and we strongly encourage our listeners to probably understand those 155 00:10:03.120 --> 00:10:07.320 risks to determine whether to buy, sell, or hold. The show has 156 00:10:07.360 --> 00:10:09.440 been on air for over thirty years. The Greenbrig Financial Group is registered with 157 00:10:09.480 --> 00:10:13.200 the SEC and a member of FINRA and SIPIK. Visit our website at Greenbriok 158 00:10:13.240 --> 00:10:18.679 Financial dot com for some more information. Very good, well done, buddy, 159 00:10:18.720 --> 00:10:20.840 Well done. It was the second time I did that one. Good. 160 00:10:20.919 --> 00:10:24.360 Yeah. Yeah. You know when the FED does start lowering interest rates, 161 00:10:24.360 --> 00:10:26.200 and that's the environment where and we're not in the environment where they're actually 162 00:10:26.320 --> 00:10:31.519 lowering rates yet, but we're in the environment where they've they've pretty much made 163 00:10:31.559 --> 00:10:35.919 it clear that they're done. They're done, and I think we saw the 164 00:10:35.600 --> 00:10:43.399 personal consumption Expenditure index a week ago down around two percent, which was their 165 00:10:43.440 --> 00:10:48.919 target. So I think FED chief poll is thinking they're probably done. And 166 00:10:48.000 --> 00:10:52.440 he actually said in a recent press conference that he could be lowering them sometime 167 00:10:52.519 --> 00:10:56.879 next week, next week, next year. It could be actually lowering industrate. 168 00:10:58.000 --> 00:11:01.639 So you add to that that, you're additional Santa Claus rally, you 169 00:11:01.639 --> 00:11:05.720 know. And we've got most of the major indices at fifty two weeks, 170 00:11:05.000 --> 00:11:09.240 a few of them at all time heights. And it's understandable we are in 171 00:11:09.320 --> 00:11:16.159 a Goldilock scenario here where everything is just right. We've got interest rates of 172 00:11:16.519 --> 00:11:22.519 declining, oil prices declining, inflation declining, and yet the economy continues to 173 00:11:22.559 --> 00:11:28.120 grow. It doesn't get any better than that. With that said, valuations 174 00:11:30.399 --> 00:11:33.440 don't really matter right now because it's go, go go, and there's a 175 00:11:33.480 --> 00:11:39.600 lot of fomo out there fear of missing out. Fomo. Don't get caught 176 00:11:39.639 --> 00:11:43.679 up in the fomo. If you're allocated as a balanced investor, continue that 177 00:11:43.919 --> 00:11:48.799 allocation. There's a tendency when the markets are like this to say man, 178 00:11:48.879 --> 00:11:54.600 I want to be more aggressive? Why am I so conservative? And there's 179 00:11:54.960 --> 00:11:58.799 when the market's going down, there's a tendency to say I want to be 180 00:11:58.879 --> 00:12:03.080 more conservative? Why am I so aggressive? And the answer is you in 181 00:12:03.120 --> 00:12:09.639 a neutral environment, sat down with the financial advisor hopefully and came up with 182 00:12:09.879 --> 00:12:16.080 the perfect plan for you. Don't change that based upon market conditions. Yeah, 183 00:12:16.120 --> 00:12:18.480 and I think it's human nature. Todd, Oh, it's definitely human 184 00:12:18.559 --> 00:12:22.120 nature. And talking about like the equal weight or five hundred, you can 185 00:12:22.159 --> 00:12:24.879 look at it and say, well, it's not up that much and you're 186 00:12:24.919 --> 00:12:30.600 still exposed to those magnificent seven, you're just not exposed to them in the 187 00:12:30.600 --> 00:12:33.159 way that you are in the S and P five hundred, the regular weighted. 188 00:12:33.600 --> 00:12:37.440 And that's a big thing to know is when you have a larger exposure 189 00:12:37.519 --> 00:12:39.960 to those volatility stocks, yes your return can be higher, but so is 190 00:12:41.000 --> 00:12:45.519 your volatility. So when you create a portfolio for someone based on their risk 191 00:12:45.519 --> 00:12:48.759 tolerance, our job as money managers is to match the volatility. Not only 192 00:12:48.879 --> 00:12:52.559 it's not really about the return that we care about, it's the volatility of 193 00:12:52.639 --> 00:12:58.279 the portfolio that the client's in and how they can stomach the volatility because we 194 00:12:58.360 --> 00:13:01.679 know stocks will return over time. Yeah, it's more about volatility. So 195 00:13:01.720 --> 00:13:05.919 they don't sell at bottoms and buy it tops. You bring up a really 196 00:13:05.960 --> 00:13:13.360 good point. Equities will outperform other financial assets over time period. They always 197 00:13:13.399 --> 00:13:18.559 have, they likely always will. The stock market is based upon GDP. 198 00:13:20.360 --> 00:13:24.039 GDP is going to be higher as long as there's more people, and more 199 00:13:24.080 --> 00:13:28.720 and more people come to this country, the GDP has to be higher, 200 00:13:28.080 --> 00:13:33.159 even if they're less productive than the ones before. It's going to make GDP 201 00:13:33.320 --> 00:13:37.159 go higher. It's going to make stock prices go higher. Stock prices will 202 00:13:37.159 --> 00:13:41.559 go higher over time. You want the absolute best return, you can possibly 203 00:13:41.559 --> 00:13:46.679 get one hundred percent in the market pedal to the metal quality stocks. Right. 204 00:13:48.159 --> 00:13:52.639 But most people cannot tolerate that volatility. So the reason that you have 205 00:13:52.759 --> 00:13:56.960 fixed income is so you can sleep at night, because I've said many times 206 00:13:58.000 --> 00:14:01.480 on this show that we sleep at night when you sleep at night. Right. 207 00:14:01.639 --> 00:14:03.919 We talked about on the show, I think a couple of times, 208 00:14:03.919 --> 00:14:07.320 something called a sharp ratio. It's a little into the weeds of financial stuff, 209 00:14:07.360 --> 00:14:11.639 but a sharp ratio is really a return weighted based on its volatility, 210 00:14:11.840 --> 00:14:16.600 and so you can see how risky a return was. If we're looking at 211 00:14:16.600 --> 00:14:18.679 a bitcoin return this year of one hundred and fifty percent, you can say 212 00:14:18.720 --> 00:14:22.240 that's great in all, but that's a different return than you're looking at a 213 00:14:22.320 --> 00:14:24.159 Navidia one hundred and fifty percent, because then the VIDIA, even though it 214 00:14:24.159 --> 00:14:26.600 has a lot of volatility, doesn't have the same volatility that has in a 215 00:14:26.600 --> 00:14:31.679 bitcoin, right, and so the level of volatility that was associated with the 216 00:14:31.720 --> 00:14:35.279 return is as well as important as not just a return, especially when you're 217 00:14:35.320 --> 00:14:39.919 looking at it from a financial planning point of view. I'm really pleased that 218 00:14:39.320 --> 00:14:45.399 I have had no calls this past week from people who are disappointed with their 219 00:14:45.440 --> 00:14:50.159 double digit return. I've had no calls at all, And I can understand 220 00:14:50.240 --> 00:14:54.840 why when you're looking at the news seeing the S and P f twenty four 221 00:14:54.919 --> 00:14:58.919 percent, and then as I got forty three percent and you're up thirteen while, 222 00:14:58.960 --> 00:15:03.759 you say what's wong with this? But I'm pleased that we've had none 223 00:15:03.799 --> 00:15:09.799 of those calls because we don't want those calls. We set the expectations beforehand 224 00:15:09.799 --> 00:15:13.200 so we don't get those calls. Right. We tell them that you're not 225 00:15:13.240 --> 00:15:15.360 going to be one hundred percent in the S and P five hundred, You're 226 00:15:15.360 --> 00:15:16.639 not going to be one hundred percent Nastak stocks. When you look at the 227 00:15:16.720 --> 00:15:20.159 NAS deck up forty three percent, you say, man, I want to 228 00:15:20.200 --> 00:15:22.799 have everything in there. Well, how about last year when it was down 229 00:15:22.879 --> 00:15:26.399 thirty percent, Right, you wanted to have nothing in there. I had 230 00:15:26.440 --> 00:15:30.320 a client in January sell out of all of this death. They get me 231 00:15:30.360 --> 00:15:33.799 out and then take This can be easily seen because when you have a Tesla 232 00:15:33.879 --> 00:15:37.720 up this year, right, one hundred and one percent, Well, twenty 233 00:15:37.759 --> 00:15:41.399 twenty two it's down sixty five percent, So you're you're just half of what 234 00:15:41.440 --> 00:15:43.000 you lost in twenty twenty two, you know, and a lot of those 235 00:15:43.039 --> 00:15:46.799 textalks lost a lot of value in twenty twenty two. So even the run 236 00:15:46.879 --> 00:15:50.600 up we've seen has really just got them back to that valuation that they were 237 00:15:50.679 --> 00:15:54.200 at. You want as much exposure to the market as you can have as 238 00:15:54.240 --> 00:15:58.879 you can tolerate, right, and right now people are starting to feel like, 239 00:15:58.960 --> 00:16:02.279 well maybe I can tolerate eight more. That's not a good way to 240 00:16:02.279 --> 00:16:06.519 think, well, especially because it's like people are getting that four four and 241 00:16:06.559 --> 00:16:08.960 a half on their money save money, right, and then they're seeing these 242 00:16:10.039 --> 00:16:12.919 rates of return that's when that FOMO starts, because you're seeing, Okay, 243 00:16:14.399 --> 00:16:18.679 I'm missing out on ten, twelve, thirteen percent of potential return because I'm 244 00:16:18.720 --> 00:16:21.759 in this four percent money market, right, And then you need to remember 245 00:16:21.799 --> 00:16:25.000 that just three years ago you would be clawing at a risk for you four 246 00:16:25.039 --> 00:16:27.159 percent. You'd be thrilled. You'd be thrilled, absolutely, But now that 247 00:16:27.240 --> 00:16:30.360 you see other returns, you may not want to be because of FOMO. 248 00:16:30.519 --> 00:16:36.000 And that's an incorrect way of thinking. Yeah, and it's just we can't 249 00:16:36.080 --> 00:16:41.639 emphasize enough. Whatever your allocation, your your comfort allocation is, please stay 250 00:16:41.679 --> 00:16:45.519 with it. And we also told people about rates that they were going to 251 00:16:45.600 --> 00:16:48.600 drop and they needed to take advantage of high rates. And it was so 252 00:16:48.639 --> 00:16:51.360 funny when I looked back on the year performance of that ten year yield. 253 00:16:51.799 --> 00:16:55.679 It finished, the yield finished exactly where it started the year. You told 254 00:16:55.720 --> 00:16:57.639 me that on Friday, I can't that's unbelievable, isn't it? And you 255 00:16:57.639 --> 00:17:00.440 said, a couple of weeks ago, you're like, the ten year dropped 256 00:17:00.440 --> 00:17:04.720 into the threes for the first time since like two months. Yeah, it's 257 00:17:04.759 --> 00:17:10.400 spiked up so quickly that your limit, your window for opportunity was so small 258 00:17:10.440 --> 00:17:12.519 you have two three months to really get the best rates possible. Who knows 259 00:17:12.519 --> 00:17:15.880 if we'll ever see those rates again. It's possible, you know, things 260 00:17:15.920 --> 00:17:18.680 can bounce back, But for the most part, the bond rally we've seen 261 00:17:18.720 --> 00:17:22.119 over the last two months, the two month game that we've seen is actually 262 00:17:22.160 --> 00:17:26.440 the biggest bond rally that we've seen going back to when they've started in nineteen 263 00:17:26.519 --> 00:17:33.039 ninety tracking it. So it's unprecedented the level of return bonds got over the 264 00:17:33.079 --> 00:17:36.839 last time. Right. Something else that we saw for the first time since 265 00:17:36.880 --> 00:17:41.279 nineteen ninety three was S and P five hundred drew in around forty billion dollars 266 00:17:41.279 --> 00:17:45.079 and inflows in December. That was the biggest track or the biggest monthly hall 267 00:17:45.200 --> 00:17:48.920 since it began trading in nineteen ninety three. So to your Fomo points, 268 00:17:48.000 --> 00:17:51.759 you know, did we see that here at the end? Is everybody trying 269 00:17:51.759 --> 00:17:53.799 to chase that Santa Claus rally? Right now? We have such an unusual 270 00:17:53.920 --> 00:18:00.359 business where when we put things on fail, no one comes in. When 271 00:18:00.400 --> 00:18:03.279 we put things at the highest price that they've ever been, we have lines, 272 00:18:03.440 --> 00:18:07.359 right, it's just it's backwards. Yeah, And the spy drew in 273 00:18:07.440 --> 00:18:11.799 around forty billion inflows in December, and it is the biggest hall since nineteen 274 00:18:11.880 --> 00:18:15.079 ninety three. But the biggest thing to look at is the biggest asset class 275 00:18:15.480 --> 00:18:21.519 inflow this entire year was cash and that heart obviously had a lot to do 276 00:18:21.559 --> 00:18:26.200 with money market, but also people being super conservative through this entire twenty twenty 277 00:18:26.240 --> 00:18:29.599 three. And it's so interesting going into twenty twenty three, there was not 278 00:18:29.680 --> 00:18:33.880 a lot of high expectations and so all stocks really had to do was beat 279 00:18:33.920 --> 00:18:37.200 those expectations and we're going to be higher. And then they did. They 280 00:18:37.200 --> 00:18:41.319 exceeded those expectations by a lot, and we saw markets run up. Now 281 00:18:41.400 --> 00:18:45.799 and going into twenty twenty four, we kind of have the opposite where valuations, 282 00:18:45.839 --> 00:18:48.400 we have high expectations going into twenty twenty four, and if stocks don't 283 00:18:48.400 --> 00:18:52.359 meet those high expectations, it's going to fall, and there's very low probability 284 00:18:52.359 --> 00:18:56.799 they're going to exceed those expectations when people forget the full effect of the FED 285 00:18:56.880 --> 00:19:00.279 rate hiking cycle will truly be felt in twenty twenty four, because it's a 286 00:19:00.319 --> 00:19:04.720 lag effect to that point, like current pricing suggests fight a six rate cuts 287 00:19:04.720 --> 00:19:08.240 for you know, twenty or of twenty five based on points each time in 288 00:19:08.240 --> 00:19:11.640 twenty twenty four. What happens if we only see one or two? What 289 00:19:11.680 --> 00:19:14.599 happens if we see two or three. Yeah, you really have to have 290 00:19:14.680 --> 00:19:18.559 this perfect scenario play out for it all to go up. But as we 291 00:19:18.640 --> 00:19:22.079 send history bows well for the markets to be positive next year, it does. 292 00:19:22.160 --> 00:19:25.640 You have one thing with the presidential election. I think the average return 293 00:19:25.680 --> 00:19:29.920 is four percent leading up one year before the election. Not only that, 294 00:19:30.440 --> 00:19:32.759 we'll talk about a little later. When when an SMP hits a new all 295 00:19:32.799 --> 00:19:34.319 time high, it hasn't done it well, hasn't closed at a new all 296 00:19:34.359 --> 00:19:38.079 time high. Yet when it does that, markets bow really well. For 297 00:19:38.359 --> 00:19:45.480 one year forward returns after that got in what about two points of all time 298 00:19:45.519 --> 00:19:47.880 closing high. I mean, Dave, you know this in your business, 299 00:19:47.960 --> 00:19:49.960 and it doesn't always happen this way, but making new all time highs and 300 00:19:51.039 --> 00:19:53.359 markets are usually a good thing. Oh absolutely, you know it's not ut 301 00:19:53.960 --> 00:19:56.759 it's not a bad indicator. But no, no, it's not, it's 302 00:19:56.799 --> 00:20:00.680 not. I think what you have to be careful of here is the there's 303 00:20:00.720 --> 00:20:07.359 just been an awful lot of over enthusiasm and I mean to go back in 304 00:20:07.400 --> 00:20:15.400 the day when the Greenspan when Greenspan came out and called the stock market rally 305 00:20:15.480 --> 00:20:21.400 irrational exuberance, and it went on for a while after that, a few 306 00:20:21.400 --> 00:20:25.519 months after that, and then it sold off. We're in a position here 307 00:20:25.559 --> 00:20:30.640 where we could use the selloff. And I'm not talking about we don't really 308 00:20:30.680 --> 00:20:36.160 anticipate in a period where the Fed is easing monetary policy, we don't expect 309 00:20:36.160 --> 00:20:41.240 a big downward move, but it certainly would be reasonable to expect a five 310 00:20:41.279 --> 00:20:45.519 to ten percent pullback now, and especially in the Big Seven. Use the 311 00:20:45.519 --> 00:20:48.079 Magnificent Seven, and they have lagged over the last thirty days. They have 312 00:20:48.160 --> 00:20:52.960 actually started to lag the value I mean, but their valuations are absolutely skewing 313 00:20:52.960 --> 00:20:56.400 the entire markets picture. And we've talked about it on the show. When 314 00:20:56.400 --> 00:21:00.319 you take those seven out, the market is not it's really historic valuations in 315 00:21:00.400 --> 00:21:03.640 terms of pe ratios. So it's not nothing to be concerned about when you 316 00:21:03.640 --> 00:21:07.480 take the Magnificent Seven out, But when you put them in, we're way 317 00:21:07.519 --> 00:21:11.880 above historic normals. So how do you play that game is a tough one. 318 00:21:12.160 --> 00:21:17.160 We as we look at twenty twenty four, we are more and more 319 00:21:17.200 --> 00:21:22.680 convinced that it's going to be a year where the Magnificent seven is not performing 320 00:21:23.000 --> 00:21:27.440 well and that value stocks, which had lagged all this year, will start 321 00:21:27.480 --> 00:21:33.880 to catch up. We've actually been increasing our exposure to the value sector and 322 00:21:33.039 --> 00:21:37.200 reducing our exposure to the growth sector. And as you think about AI, 323 00:21:37.359 --> 00:21:41.359 and that's really why the Magnificent seven have the real totally this year was you 324 00:21:41.400 --> 00:21:45.880 know, it's not revenue generating yet. Now it's likely not going to be 325 00:21:45.960 --> 00:21:49.240 revenue generating in twenty four. So when that starts to come out through light 326 00:21:49.319 --> 00:21:53.279 in those earnings reports, in those earnings calls, and investors realize that we're 327 00:21:53.319 --> 00:21:56.440 still a couple of years away from this ever really adding any money to the 328 00:21:56.480 --> 00:22:03.839 bottom line, that also might skew expectations, because that's why these valuations sky 329 00:22:03.160 --> 00:22:07.000 I think the best example of the best analogy to that are something that's very 330 00:22:07.039 --> 00:22:12.759 similar is the the ev charging stations, those level three, especially the ones 331 00:22:12.799 --> 00:22:15.359 that you want when you're out on the road. Those are fifty two one 332 00:22:15.400 --> 00:22:22.359 hundred thousand dollars apiece. How many twenty twenty five thirty dollars charges do you 333 00:22:22.400 --> 00:22:26.039 have to get before you're even just back to what you have invested? So 334 00:22:26.480 --> 00:22:30.960 Initially it's all outlay and very little income. And that's what we have with 335 00:22:32.039 --> 00:22:36.319 AI. It's a tremendous amount of outlay as you've developed, and every now 336 00:22:36.359 --> 00:22:40.599 and then you'll see something AIS up running this right, But from a revenue 337 00:22:40.680 --> 00:22:44.799 generating point of view, Todd, you're absolutely spot on. AI is not 338 00:22:45.000 --> 00:22:48.279 generating a lot of revenue, and yet the stocks have gone up, have 339 00:22:48.359 --> 00:22:53.000 doubled, whereas then you still have sectors that are very attractive even with run 340 00:22:53.079 --> 00:22:57.519 ups. And we've talked about homebuilders, how new homebuilders really don't have a 341 00:22:57.559 --> 00:23:02.480 lot to go against them with rates coming down, more demand, there's really 342 00:23:02.480 --> 00:23:04.839 no inventory coming online because even though six and a half percent is a drop, 343 00:23:06.319 --> 00:23:07.480 no one's getting rid of their three or four when it's at six and 344 00:23:07.519 --> 00:23:12.160 a half. So from new home builders, they're not real they're not really 345 00:23:12.200 --> 00:23:17.279 overvalued in terms of historic valuations for that industry. It seems like that could 346 00:23:17.279 --> 00:23:21.440 be a good place. Healthcare has been known as an underinvested space in twenty 347 00:23:21.480 --> 00:23:25.880 twenty three, and defense stocks, I mean, it's it's been a weird 348 00:23:25.960 --> 00:23:27.640 year for defense. Obviously, it had a couple of wars and that brought 349 00:23:27.680 --> 00:23:33.200 the whole sector higher. But then Raytheon had bad issues, Lockheed Martin had 350 00:23:33.240 --> 00:23:37.400 an issue with a couple of things. Boeing seems like they just had an 351 00:23:37.440 --> 00:23:41.160 issue that came out as well about one of their newest So it's weird how 352 00:23:41.200 --> 00:23:44.720 you're going to see in twenty four. But defense could be another interesting sector. 353 00:23:44.880 --> 00:23:47.759 Yeah, there are there, and again, most of those stocks are 354 00:23:47.839 --> 00:23:52.400 value stocks, which is that area that's really lagged this past year. Three 355 00:23:52.440 --> 00:24:00.000 point five percent increase in the value sector in twenty twenty three versus twenty five 356 00:24:00.000 --> 00:24:03.720 four for the S and P forty three for the Nasdaq show. That's there's 357 00:24:03.759 --> 00:24:07.400 a lot of stocks. If you take the five hundred stocks in the S 358 00:24:07.440 --> 00:24:10.680 and P five hundred, you've got seven of them that are just on fire, 359 00:24:10.759 --> 00:24:12.000 and you've got four hundred and ninety three of them, then they're doing 360 00:24:12.039 --> 00:24:17.880 okay. Right, So we appreciate you joining us on this New Year's Eve 361 00:24:18.359 --> 00:24:22.400 version, New Year's Eve twenty twenty three, the New Year's e version of 362 00:24:22.400 --> 00:24:25.960 the Money Matter Show, And we'll be back right after this break. Thanks 363 00:24:25.960 --> 00:24:34.240 again for joining us, say it's only a man. Welcome back to the 364 00:24:34.240 --> 00:24:37.039 Money Matter Show. My name is Todd Lick. I'm here with Sebastian Born 365 00:24:37.160 --> 00:24:41.799 seen me and David Sherwood. The green Birds are out of the office as 366 00:24:41.799 --> 00:24:45.039 they are on a vacation. But we had a fun week this week with 367 00:24:45.240 --> 00:24:49.079 very low volatility, so as much fun as you can in those type of 368 00:24:49.079 --> 00:24:52.200 weeks. The doll was up point eight percent, s and P was up 369 00:24:52.200 --> 00:24:56.640 point three, Naw's Doc up point one, Russell down zero point one, 370 00:24:56.960 --> 00:25:00.960 and equate It up point five. But really, let's talk about the year 371 00:25:00.279 --> 00:25:03.519 so far. The Dow, well, not so far. This is the 372 00:25:03.640 --> 00:25:07.839 that's it. Is it official? It's official. The Dow was up thirteen 373 00:25:07.839 --> 00:25:10.519 point seven percent, the S and P was up twenty four point two, 374 00:25:10.920 --> 00:25:14.960 NASDAK was up forty three point four, the Russell two thousand, small caps 375 00:25:15.039 --> 00:25:18.400 up fifteen point one, and equal Weight It up eleven point eight. Let's 376 00:25:18.440 --> 00:25:21.799 let's run through some of those numbers real quick. The first one that pops 377 00:25:21.799 --> 00:25:23.799 out to me is Russell two thousand. I've heard many pundits on the TV 378 00:25:25.200 --> 00:25:30.680 shows talking about how undervalued the small caps have been, but I've also heard 379 00:25:30.680 --> 00:25:33.000 other people say the quality of these small cap companies are not as that they 380 00:25:33.160 --> 00:25:37.559 historically been because of all the money that was printed in twenty twenty and some 381 00:25:37.599 --> 00:25:41.720 of these zombie companies that are embedded in those Russell two thousands. So I'm 382 00:25:41.720 --> 00:25:45.039 curious your thoughts. Do you think there could be a return of these small 383 00:25:45.079 --> 00:25:48.559 caps or is it truly that they should be valued where they are because of 384 00:25:49.160 --> 00:25:52.920 just not high quality businesses. Yeah, generally they don't lead. Generally, 385 00:25:52.960 --> 00:25:56.240 the Russell doesn't lead, it follows. And so I when I see a 386 00:25:56.240 --> 00:26:00.200 an asdac out forty three point, I love to I'd love to have a 387 00:26:00.359 --> 00:26:04.960 period, maybe a quarter where the Magnificent seven doesn't do anything, so we 388 00:26:06.000 --> 00:26:10.359 could actually get a look at what really is going on here. So that 389 00:26:10.359 --> 00:26:15.440 would be really really nice. The thing that I look at when I see 390 00:26:15.440 --> 00:26:18.480 that is is that the the S and P five hundred and the nasdak are 391 00:26:18.599 --> 00:26:26.279 way out performing every other index. Those two indices are heavily weighted in the 392 00:26:26.319 --> 00:26:30.839 Magnificent seven. So that's that's and so we want to see and I'm thinking 393 00:26:30.880 --> 00:26:36.480 we're going to get a better look in twenty twenty four with the Magnificent seven. 394 00:26:37.039 --> 00:26:38.599 I mean you can literally just see it right, equal weighted at twelve 395 00:26:38.799 --> 00:26:44.079 S and P at twenty four. That means the magnificent seven accounted for fifty 396 00:26:44.799 --> 00:26:49.160 Yeah, it's insane, it's it's just not realistic. I mean you can't. 397 00:26:49.279 --> 00:26:52.480 You can't as an investor look at the S and P five hundred, 398 00:26:52.680 --> 00:27:00.720 which is historically a really good gauge of value and gleaning anything from it in 399 00:27:00.799 --> 00:27:07.079 twenty twenty three because it was so heavily skewed towards those seven big textile And 400 00:27:07.079 --> 00:27:08.759 I think it's tough to use the doll either because of only thirty stocks. 401 00:27:08.960 --> 00:27:12.000 It's only thirty stocks, so it leaves you with really the equal weight to 402 00:27:12.200 --> 00:27:17.880 SMP five hundred is about all years, and that's for twenty twenty three. 403 00:27:18.039 --> 00:27:22.680 That was the best barometer mark it up about twelve percent for the and that's 404 00:27:22.680 --> 00:27:26.920 how it felt. Yes, yes, it didn't feel like a forty three 405 00:27:26.000 --> 00:27:29.920 percent year, as the Nasdaq saying, it didn't feel like a twenty four 406 00:27:29.960 --> 00:27:32.720 percent year, but an equal way to twelve. It did feel like that, 407 00:27:33.000 --> 00:27:37.400 and something that for a lot of people, I'll say this and they'll 408 00:27:37.400 --> 00:27:40.000 say, oh, wow, that was in that was this year. The 409 00:27:40.039 --> 00:27:42.400 bank failures back in March, right, it feels so long ago, almost 410 00:27:42.400 --> 00:27:45.960 feels like it was a regional bank crisis. Right, it does. It 411 00:27:45.960 --> 00:27:48.279 feels like an another year, but it must have been a couple of years 412 00:27:48.319 --> 00:27:51.559 ago, right, But it was this year and we knew that. I 413 00:27:51.559 --> 00:27:53.519 mean, that was one of the big worries in March, where oh, 414 00:27:53.519 --> 00:27:56.960 we're going to have a repeat. And then in two thousand and eight when 415 00:27:57.000 --> 00:28:00.759 the first banks failed, it was six months later that next banks failed, 416 00:28:00.799 --> 00:28:03.359 and then all that stuff happened. So we were worried about March of what 417 00:28:03.400 --> 00:28:06.880 happens in September, what happens in October? Did more stuff start happening? 418 00:28:07.319 --> 00:28:10.200 We saw the Federal Reserve, you know, they came in with a lot 419 00:28:10.200 --> 00:28:12.160 of action. They created two new tools. I won't go into them because 420 00:28:12.160 --> 00:28:17.680 they're very complicated, but it basically allows these regional banks to have more collateral 421 00:28:17.759 --> 00:28:21.279 and so they don't have liquidity issues now. That helped sure them up and 422 00:28:21.359 --> 00:28:26.400 people have somewhat had a resurgence and trust in these regional stocks. But the 423 00:28:26.440 --> 00:28:29.880 real winner through all of that was JP Morgan and then some of the other 424 00:28:29.920 --> 00:28:33.119 big national banks. Yes, they had a huge inflow of cash because people 425 00:28:33.160 --> 00:28:37.079 just didn't have that trust in those regional banks anymore, and they wanted that 426 00:28:37.160 --> 00:28:41.680 security with the national banks JP Morgan did have a pretty decent year as well. 427 00:28:41.839 --> 00:28:44.640 I don't know if it was just because of that, but in terms 428 00:28:44.680 --> 00:28:48.279 of the national banks getting almost completely swallowing up the regional banks, that was 429 00:28:48.319 --> 00:28:52.799 a really interesting story that some may forget happened this year. And then the 430 00:28:52.880 --> 00:28:57.680 last extreme months or so, the regional bank ETF has just exploded higher, 431 00:28:57.759 --> 00:29:02.480 yes, which tells me that that's that's kind of kind of gone away. 432 00:29:02.519 --> 00:29:07.119 It's kind of like I was at the gym Thursday night, and I go 433 00:29:07.200 --> 00:29:08.640 to the gym when he gets cold, and to me, cold is anything 434 00:29:08.720 --> 00:29:11.880 under eady, you know, under the gym quite a bit in the winter. 435 00:29:14.680 --> 00:29:18.559 And the treadmills are right in front of the CNN. I wouldn't watch 436 00:29:18.640 --> 00:29:22.240 CNN otherwise, but it's right there, and I call it, you know, 437 00:29:22.279 --> 00:29:23.960 it's the Turner News Network t n T. I call it the Trump 438 00:29:25.519 --> 00:29:30.200 News Network. And if I if I'm watching CNN and everything is Trump, 439 00:29:30.279 --> 00:29:33.240 Trump, Trump, which it was Thursday night, everything in the world's good, 440 00:29:33.480 --> 00:29:37.200 right, I mean, there's nothing they're talking about though. The war 441 00:29:37.359 --> 00:29:41.880 is the two wars are are what they are, and I guess the Ukraine 442 00:29:41.880 --> 00:29:44.319 War must be over because I haven't heard a word about it in about a 443 00:29:44.359 --> 00:29:48.640 month two months. Maybe. Isn't that crazy how that's gone from from the 444 00:29:48.640 --> 00:29:53.079 front page of the paper to nobody's even talking about it. And from Putin's 445 00:29:53.119 --> 00:29:56.519 point of view, that's as good as it gets, it seems to me. 446 00:29:57.000 --> 00:30:00.519 Yeah. And well, when Dean was, you know, a couple 447 00:30:00.559 --> 00:30:03.240 of weeks ago, he said, where's all this liquidity coming from? Where's 448 00:30:03.240 --> 00:30:06.960 all this cash coming from? Well there's two places. One we know the 449 00:30:07.000 --> 00:30:10.680 inflows of cash was the biggest it ever was. And well in terms of 450 00:30:10.680 --> 00:30:12.680 asset classes it was big at this year, So that's where the most money 451 00:30:12.759 --> 00:30:15.240 is. There's still a lot of money in the safe money that is available 452 00:30:15.240 --> 00:30:19.480 to be deployed into these markets if investors decide to do so. When we 453 00:30:19.519 --> 00:30:23.440 talked a little bit about that, FOMO and so, Also the issue is 454 00:30:23.559 --> 00:30:29.200 Federal Reserve hasn't been rolling off its balance sheet like it's supposed to when it 455 00:30:29.200 --> 00:30:32.880 there's contutative tightening. What they're actually doing is they're buying, and that's what 456 00:30:33.039 --> 00:30:36.079 they're giving all this money to those regional banks to help them sure up that 457 00:30:36.200 --> 00:30:38.480 increase their balance sheet. So in a time when they're supposed to be you 458 00:30:38.559 --> 00:30:42.759 know, restrictive and tightening on the economy. They've actually been easy to help 459 00:30:42.799 --> 00:30:47.759 the regional banks come back online. So it's kind of been skewing this entire 460 00:30:47.920 --> 00:30:51.880 quantitative tightening process the way it's supposed to go. Well, if you think 461 00:30:51.920 --> 00:30:56.400 about twenty twenty two with the the market, the S and P five hundred 462 00:30:56.400 --> 00:30:59.880 down twenty two percent, and in twenty twenty three up twenty four percent. 463 00:31:00.079 --> 00:31:03.440 Essentially money just came back to where where it was, right. Yeah, 464 00:31:03.599 --> 00:31:07.559 that good point, so that we're kind of gone nowhere. Oil oil was 465 00:31:07.599 --> 00:31:10.200 down two dollars on the week to seventy one fifty. Turns out it was 466 00:31:10.240 --> 00:31:14.680 down two dollars on the year. Also, oil down eleven percent of the 467 00:31:14.759 --> 00:31:18.519 year. I had I had two dollars and I was doing the monthly. 468 00:31:18.720 --> 00:31:21.279 I think it was six. I had six percent for the year. But 469 00:31:22.000 --> 00:31:25.039 either way, it was down for the first time since twenty twenty. Yeah, 470 00:31:25.119 --> 00:31:27.920 gold had gold had a good year because of the dollar week. Actually 471 00:31:29.079 --> 00:31:33.799 two things. Gold it's interesting goal was hanging around eighteen hundred dollars and gold 472 00:31:33.799 --> 00:31:36.720 loves war, and it jumped. It loves war and it jumped up to 473 00:31:36.759 --> 00:31:41.240 two thousand when when Israel attacked Gaza. Also, well, I jumped in 474 00:31:41.279 --> 00:31:44.680 twenty two, I guess, Yeah, it was in around eighteen hundred and 475 00:31:44.759 --> 00:31:48.640 kind of fading into oblivion really because the dollar was so strong because of higher 476 00:31:48.640 --> 00:31:53.279 interest rates. So gold had jumped that from eighteen hundred to two thousand just 477 00:31:53.359 --> 00:32:00.480 based on that. The Israeli attack of Gaza, and then dollar started to 478 00:32:00.519 --> 00:32:05.759 decline because interest rates are declining, they tend to move like that, and 479 00:32:05.920 --> 00:32:09.279 gold moves inversely to the dollar, so it got another little boost there. 480 00:32:09.400 --> 00:32:14.599 So gold had a gold had a decent year. The treasury, they continue 481 00:32:14.640 --> 00:32:19.119 that inversion continues. Just you can't break it. I don't know what what's 482 00:32:19.160 --> 00:32:22.000 ever going to break that, Todd, but that inversion again is a predictor 483 00:32:22.279 --> 00:32:28.680 of recession, and it's been inverted now and inverted meaning that the yield on 484 00:32:28.799 --> 00:32:32.640 short term treasuries is higher than the yield on long term treasuries. Yeah. 485 00:32:34.480 --> 00:32:38.279 I kind of still believe that twenty twenty four is going to be a really 486 00:32:38.319 --> 00:32:45.680 hard year because of the that's the full effects of the tightening cycle. I 487 00:32:45.680 --> 00:32:49.920 think the thing the thing that would would would I can't disagree with what you're 488 00:32:49.920 --> 00:32:52.599 saying on a fundamental point of view. But keep in mind interest rates are 489 00:32:52.640 --> 00:32:57.079 going to be coming down, it seems like, and it is an election 490 00:32:57.240 --> 00:33:00.920 year, so anything that they can do, anything they can positive for the 491 00:33:00.960 --> 00:33:04.640 economy to make things look better, they're going to do it. So that 492 00:33:04.839 --> 00:33:08.000 may offset what you're saying, which is fundamentally true. Yeah, no, 493 00:33:08.759 --> 00:33:14.119 that's the whole thing is how do you you know there's one side of fundamentals 494 00:33:14.160 --> 00:33:17.480 and one side there's exuberance, and exuberance can definitely be more important for the 495 00:33:17.519 --> 00:33:22.119 markets. And you know, markets stay irrational longer than you stay liquids. 496 00:33:22.200 --> 00:33:24.240 So it's not something I would hang my hat on for sure. But in 497 00:33:24.319 --> 00:33:28.359 terms of fundamentals and you start looking at earnings reports, you would tend to 498 00:33:28.400 --> 00:33:30.880 expect what's going to happen next year because of interest rates. I mean, 499 00:33:30.920 --> 00:33:35.960 it has to eventually hurt profits. It's just it'll be interesting to see next 500 00:33:35.960 --> 00:33:39.799 week. January is historically we know about one thing we know for sure about 501 00:33:39.880 --> 00:33:45.279 January. It is the month in which more money flows into the stock market 502 00:33:45.319 --> 00:33:49.079 than any other month, right, And the reason for that is because everyone, 503 00:33:49.680 --> 00:33:53.240 even the most wealthy amongst US funds their four to one k now you 504 00:33:53.319 --> 00:33:57.319 may fund your entire four oh one k for the year in one paycheck. 505 00:33:58.000 --> 00:34:00.480 There are people out there that are fortunate have to do that, But that 506 00:34:00.640 --> 00:34:05.400 money all goes in. Whether you're making a million dollars a year or making 507 00:34:05.400 --> 00:34:07.920 ten thousand dollars a year, all of those four oh one k contributions, 508 00:34:08.000 --> 00:34:14.639 it never gets higher than January. So that comes in. Now, that 509 00:34:14.679 --> 00:34:16.960 doesn't mean that the mutual fund companies that are receiving that money have to put 510 00:34:16.960 --> 00:34:20.800 it to work right away. Well. Also, it's like, you know, 511 00:34:20.840 --> 00:34:23.480 when you look at why does December and January always seem to be the 512 00:34:23.480 --> 00:34:27.960 best months for the stocks. It's just because it's the end of the year, 513 00:34:28.039 --> 00:34:30.119 right. I Mean, when you have the calendar year ending in the 514 00:34:30.159 --> 00:34:32.400 first year, the first week that you can put your new paychecks in because 515 00:34:32.400 --> 00:34:37.960 of regulations is January. Then yeah, that's gonna be the one when twenty 516 00:34:37.000 --> 00:34:42.079 five percent of the profits happened in December because that's when Christmas is sure, 517 00:34:42.119 --> 00:34:45.159 that's that's why you're going to have it so much. So you put Christmas 518 00:34:45.159 --> 00:34:47.039 in March, we're gonna have a completely different story. Yeah, you put 519 00:34:47.199 --> 00:34:52.119 Black Friday in April, we're gonna have a different story. So I when 520 00:34:52.119 --> 00:34:57.320 people talk about those season overturns, it's definitely true because of the stories and 521 00:34:57.360 --> 00:35:00.000 events that are around those times. Now, it has nothing to do with 522 00:35:00.119 --> 00:35:02.360 calendar. And we all know that the month that is the most likely to 523 00:35:02.400 --> 00:35:08.079 close higher statistically is December. Number two is January, and we've said on 524 00:35:08.119 --> 00:35:12.840 the show November one through the end of January is the best ninety day period 525 00:35:12.880 --> 00:35:16.599 of the year, responsible for roughly fifty percent of all stock market gains for 526 00:35:16.639 --> 00:35:22.400 the entire year. So it'd be interesting to see the new year. Now, 527 00:35:22.400 --> 00:35:25.960 there was not a lot of selling in December because it's a lot of 528 00:35:25.960 --> 00:35:29.840 people had gains for the year. You don't want to take those gains until 529 00:35:29.920 --> 00:35:31.800 January. So it'll be interesting to see what happens next week if there's a 530 00:35:31.800 --> 00:35:36.800 little profit taking maybe to start off the year. I've got a feeling that 531 00:35:36.920 --> 00:35:39.039 back. I got a feeling as we get into late January, we're gonna 532 00:35:39.039 --> 00:35:43.519 see a little bit we'll pull back, especially you think some profit taking the 533 00:35:43.559 --> 00:35:46.360 Magnificent seven. Yeah, absolutely, Again, we thank you for joining us. 534 00:35:46.599 --> 00:35:51.360 Segment two is coming to an end. We'll be back. We'll be 535 00:35:51.440 --> 00:35:57.719 back with the third segment. Right at this break. Thanks again, say 536 00:35:57.760 --> 00:36:05.519 it's only a welcome back to the Money Matter Show. I'm here with Dave 537 00:36:05.559 --> 00:36:08.880 Sherwood, Todd Glick. My name is Sebastian Borsini. Well, we had 538 00:36:08.880 --> 00:36:13.119 a fun week. We talked about Magnificent Seven a lot because they were the 539 00:36:13.119 --> 00:36:16.239 story of the year. The darnling of the Magnificent seven is no doubt. 540 00:36:16.239 --> 00:36:21.960 In Navidia this year's market, Darling was up two hundred and thirty nine percent 541 00:36:22.000 --> 00:36:24.360 for the year and now trades at four hundred ninety five dollars per share. 542 00:36:24.679 --> 00:36:28.880 It was all because of the AI craze. For people who don't know chat 543 00:36:28.920 --> 00:36:32.239 gbt, which really started the whole AI craze runs on semi conductors that are 544 00:36:32.239 --> 00:36:37.320 produced by Navidia and a lot of other companies that are starting to create these 545 00:36:37.360 --> 00:36:42.960 similar chat gbt products or other generative AI. They need those type of semiconductors 546 00:36:43.000 --> 00:36:46.719 and so with a backlog of orders and a lack of supply, the video's 547 00:36:46.719 --> 00:36:51.760 stock went through the roof because they were positioned exactly where they needed to be 548 00:36:51.880 --> 00:36:54.440 when this praise came out, they were it was absolutely fantastic. Yeah, 549 00:36:54.480 --> 00:36:59.159 and we know other stocks like AMD not in the MAGNIFICSM seven. But you 550 00:36:59.159 --> 00:37:01.639 know another popular they're all semi conduct which really just had a killer year this 551 00:37:01.719 --> 00:37:07.320 year. Meta the second probably highest returning one of the mag seven, was 552 00:37:07.400 --> 00:37:09.199 up one hundred and ninety four percent for the year now trades a three hundred 553 00:37:09.199 --> 00:37:12.840 and fifty four dollars per share. The story of this one was really the 554 00:37:12.880 --> 00:37:15.840 reduction in business costs from the previous year. Investors couldn't stand all the money 555 00:37:15.840 --> 00:37:22.800 that Zuckerberger's spending on the aim on the metaverse. And as they did have 556 00:37:22.880 --> 00:37:27.000 those reduction in business costs because of a whole bunch of layoffs and their presence 557 00:37:27.000 --> 00:37:29.480 a little bit of presents in the AI space, it helped lift the stock 558 00:37:29.559 --> 00:37:34.119 back trading around near all time highspeck where they were around twenty twenty amazing. 559 00:37:34.239 --> 00:37:37.440 I mean we when it was down around one hundred and twenty dollars to share, 560 00:37:37.440 --> 00:37:40.679 it looked like it was going to zero, right, I mean that 561 00:37:40.679 --> 00:37:45.800 it seems like they had taken a wrong, wrong direction. They had taken 562 00:37:45.800 --> 00:37:49.039 a wrong turn. And it's always easy when you look at a stock that's 563 00:37:49.039 --> 00:37:52.239 going down, how do they even make money? Yeah? And then when 564 00:37:52.559 --> 00:37:54.800 it's up higher, you're like of course that's how they Yeah, yeah, 565 00:37:54.840 --> 00:38:00.559 I know that Zuckerberg went all in on the AI thing, and uh there 566 00:38:00.599 --> 00:38:05.119 was a lot of doubt about whether or not maybe he had lost his touch 567 00:38:05.159 --> 00:38:07.440 and maybe made a wrong term, you know, speaking of losing touch when 568 00:38:07.519 --> 00:38:09.960 when you're when you're away, you have time to think. Right now, 569 00:38:09.960 --> 00:38:15.679 I was, I was thinking, we all think that we're irreplaceable. A 570 00:38:15.719 --> 00:38:20.639 lot of us think we're irreplaceable. Right this place couldn't run without me, 571 00:38:20.760 --> 00:38:22.400 you know. I think the ego wants to believe that and wants to believe 572 00:38:22.440 --> 00:38:25.119 that right now. I was thinking, well, well, working out in 573 00:38:25.320 --> 00:38:30.440 over in California, there's some time on my hands. I came up with 574 00:38:30.800 --> 00:38:37.039 what might be the best example ever of how none of us are irreplaceable. 575 00:38:37.239 --> 00:38:43.639 And I think that example is Steve Jobs Team. Steve Jobs was the face 576 00:38:43.679 --> 00:38:46.719 of Apple. He was the brains of Apple. He was the creative genius 577 00:38:46.760 --> 00:38:51.920 of Apple. Without Steve Jobs, this company is just an Apple with a 578 00:38:51.920 --> 00:38:55.239 bite out of it, right, and here comes Tim Cook, client preserved 579 00:38:55.840 --> 00:39:00.400 Tim Cook, who has just teed it up and hit it out of the 580 00:39:00.480 --> 00:39:05.199 park. I mean the company, I e. You could argue that the 581 00:39:05.239 --> 00:39:13.000 company today is dramatically better because Steve Jobs died. Yeah, you wouldn't have 582 00:39:13.000 --> 00:39:15.400 as much spending in R and D, right, I mean, isn't it 583 00:39:15.400 --> 00:39:17.599 amazing? I mean it's just amazing. I mean, if you ever think 584 00:39:17.599 --> 00:39:21.679 you're irreplaceable, just think about Steve Johns. Well, I've watched a really 585 00:39:21.719 --> 00:39:25.400 fascinating documentary this last week. It was docuseries on Netflix called super Pumped about 586 00:39:25.400 --> 00:39:29.599 the creation of Uber and the founder of Uber and how his whole story and 587 00:39:29.599 --> 00:39:32.079 how eventually the board asked him to resign. He had to resign off the 588 00:39:32.119 --> 00:39:37.239 board. The whole story really and tells how he was a genius. I 589 00:39:37.239 --> 00:39:39.199 mean, to bring Uber to fruition, you had to fight the cab oh 590 00:39:39.239 --> 00:39:42.880 my goodness, you know, the unions, everything that he had to get 591 00:39:42.920 --> 00:39:45.480 through, and he did it. But he had a he had He's a 592 00:39:45.599 --> 00:39:47.800 kind of an egomaniac, to be honest, and you kind of see it 593 00:39:47.840 --> 00:39:51.079 through the show. Kind of required, don't you think. But that's my 594 00:39:51.159 --> 00:39:52.599 point is at the end of it, when you get to a certain level 595 00:39:52.599 --> 00:39:58.000 of business, it matters how you are seeing, how you're viewed, what 596 00:39:58.039 --> 00:40:01.960 your reputation is, and when you look at someone who's running a billion, 597 00:40:02.079 --> 00:40:06.719 you know, one hundred billion dollar company. You don't want that person to 598 00:40:06.760 --> 00:40:08.480 be looking bad in the public eye. Sure, and so they had the 599 00:40:08.480 --> 00:40:14.440 force and to resign because he was just causing so much problems for Uber that 600 00:40:14.480 --> 00:40:17.000 the Uber itself could cease to exist, even though it was one of the 601 00:40:17.000 --> 00:40:22.000 greatest ideas of our generation. Yes, and it's all because of that that 602 00:40:22.119 --> 00:40:25.239 super egomaniac is so right for so long. Eventually he thinks he can do 603 00:40:25.280 --> 00:40:29.760 nothing wrong. And you need that someone that comes in humbles And I think 604 00:40:29.840 --> 00:40:32.159 that, like you said, Tim Cook, probably is that person. Yeah. 605 00:40:32.199 --> 00:40:36.599 He did just done a spectacular job with that company, you know. 606 00:40:36.639 --> 00:40:39.360 And over in California there was a lot of talk about the vaccines and you 607 00:40:39.360 --> 00:40:42.880 know, flu vaccines, COVID vaccines, that sort of thing. You know, 608 00:40:42.880 --> 00:40:45.880 they're a little I heard the mass man dig just came back in hospitals 609 00:40:45.880 --> 00:40:50.679 too. Where pretty sure in New York. Really, I hope that doesn't 610 00:40:50.679 --> 00:40:53.079 spread it because it's kind of silly. Yeah. At this point, I 611 00:40:53.119 --> 00:40:57.760 mean, we've all either had COVID or had of COVID. I think eighty 612 00:40:57.800 --> 00:41:02.280 percent had some. Yeah, and you've known people had to go remind me 613 00:41:02.320 --> 00:41:06.079 of my daughter asked me if I get a flu shot, and I said, 614 00:41:06.159 --> 00:41:08.239 yes, I get a flu shot, you know, And here's why. 615 00:41:08.639 --> 00:41:12.760 Twenty years ago I saw a study. I can tell you this, 616 00:41:13.280 --> 00:41:15.000 what I can tell you what you're about to say it helps? Well, 617 00:41:15.000 --> 00:41:17.719 well, why don't I say it there better than you're telling me. You 618 00:41:17.760 --> 00:41:21.360 said it on the show before. I have said it on the show before. 619 00:41:22.199 --> 00:41:25.280 But but I've got some renewed information. It's not the old information, 620 00:41:25.480 --> 00:41:30.880 right, So twenty years ago it's old information. Twenty years ago, I 621 00:41:30.239 --> 00:41:36.960 saw a report from the mail clientic that flu shot reduces chance of sudden cardiac 622 00:41:37.079 --> 00:41:39.000 death by fifty percent. Right, you know, so I get a flu 623 00:41:39.039 --> 00:41:42.800 shot every year. I don't care about the flu. I'm fine with the 624 00:41:42.800 --> 00:41:45.119 flu I can have. I can handle flu. Yeah yeah, I mean 625 00:41:45.239 --> 00:41:47.440 even if I get the flu, I can handle it, right, I 626 00:41:47.440 --> 00:41:52.239 mean, you know I know how to handle the flu. On November thirtieth, 627 00:41:52.320 --> 00:41:57.280 though of this year, a report in Scientific Reports showed a twenty six 628 00:41:57.400 --> 00:42:01.840 percent decreased risk of heart attacks in people who received a flu vaccine and a 629 00:42:01.920 --> 00:42:08.239 thirty three percent reduction in cardiovascular death. So again, for whatever reason, 630 00:42:09.039 --> 00:42:14.719 the flu shot is effective and it's been documented and sure. I asked you 631 00:42:14.719 --> 00:42:17.159 two weeks ago if you would take Ozmpics because Ozmpic does the same thing. 632 00:42:19.360 --> 00:42:22.559 I forget the Olympic. A flu shot, No, it's not the food 633 00:42:22.599 --> 00:42:27.880 shot, but it decreases the risk of cardiovascular attack or whatever you just said 634 00:42:27.960 --> 00:42:35.719 by thirteen percent. I was just I asked you that it also takes twenty 635 00:42:35.719 --> 00:42:39.360 five percent of my bone and muscle. Yeah, right right, I got 636 00:42:39.400 --> 00:42:44.119 about the twenty five thousand brain cells that flu vaccine takes away from you. 637 00:42:44.519 --> 00:42:47.519 That is maybe, yeah, And maybe they've got a little trans transmitter in 638 00:42:47.559 --> 00:42:51.559 there, just being injected into my eye. I think I think I see 639 00:42:51.599 --> 00:42:53.599 some greed die in those veins so the government can track me, right, 640 00:42:53.719 --> 00:42:57.920 Yeah, hear these people say, I don't I don't want to. I 641 00:42:57.960 --> 00:43:00.840 don't want the government trucking me. Well, then you to put yourself one 642 00:43:00.880 --> 00:43:04.079 away, you know, I mean everyone of us is walking around with it. 643 00:43:04.199 --> 00:43:07.119 Well, like I don't trust the government. I'm like, what what 644 00:43:07.239 --> 00:43:09.840 dollar do you use? Because they're all backed by the government. Speaking of 645 00:43:09.880 --> 00:43:14.639 which, that's a good segue. Been hearing a lot. You know, 646 00:43:15.159 --> 00:43:19.880 scams are just pervasive right now, just pervasive, especially around the holidays. 647 00:43:19.920 --> 00:43:22.480 You've got a package at the post office, you know, click here to 648 00:43:22.960 --> 00:43:29.119 get it delivered. Here's the here's the authentication code you requested. I mean, 649 00:43:29.239 --> 00:43:31.320 just on and on and on. One of the latest scams and I 650 00:43:31.320 --> 00:43:37.159 get a call about this almost every week is that. And usually it's about 651 00:43:37.159 --> 00:43:40.159 the dollar, right, because these guys know that if they start talking about 652 00:43:40.199 --> 00:43:44.039 the dollar, because we're all pretty near and dear the dollars, pretty near 653 00:43:44.039 --> 00:43:45.519 and dear to dollars, right, we all kind of like our dollars, 654 00:43:45.559 --> 00:43:50.039 I think us. You start threatening the dollar, that's going to get some 655 00:43:50.079 --> 00:43:52.599 attention. And all they're trying to do is get you to sign up for 656 00:43:52.639 --> 00:43:55.840 a newsletter, sign up for their magazine whatever. The most recent one. 657 00:43:57.199 --> 00:44:01.280 And I heard this last week. Congress has passed and Biden has signed a 658 00:44:01.360 --> 00:44:07.800 bill that replaces our currency with a digital currency. And the guy that called 659 00:44:07.840 --> 00:44:12.119 me said it could happen as soon as the end of the year. This 660 00:44:12.159 --> 00:44:15.119 is about two weeks ago. It could happen as soon as the end of 661 00:44:15.119 --> 00:44:20.480 the year. Right. A couple of problems with that problem. Number one, 662 00:44:20.639 --> 00:44:23.800 it didn't happen. Congress didn't pass the bill, Biden didn't sign the 663 00:44:23.800 --> 00:44:29.599 bill. But even more importantly, the government does not even have a digital 664 00:44:29.639 --> 00:44:34.920 currency into which they could swap the dollar. It doesn't exist. Now the 665 00:44:35.000 --> 00:44:38.119 FED is trying to work on something in like a small team, but there's 666 00:44:38.239 --> 00:44:43.320 nothing that has been created. They're talking about how it might benefit consumers, 667 00:44:44.079 --> 00:44:46.360 how they can do something along these lines. But of course they would say 668 00:44:46.400 --> 00:44:49.559 that, yes, of course. I mean if a surveillance tool, they're 669 00:44:49.559 --> 00:44:52.480 going to say it's it's for the betterment of humanity. Point is, there 670 00:44:52.559 --> 00:44:57.800 is no digital currency that they're going to swap your dollar into the time soon, 671 00:44:58.599 --> 00:45:02.199 not any time, prob in my lifetime. So I want you to 672 00:45:02.440 --> 00:45:07.599 when you so many things that if it looks the least bit suspicious. I 673 00:45:07.639 --> 00:45:13.800 had a gal that has a annuity with Nationwide and she received a email from 674 00:45:13.880 --> 00:45:20.199 Nationwide saying that she had to provide certain information or her annuity contract would be 675 00:45:20.239 --> 00:45:23.599 canceled. Couldn't And she's eighty eight years old, right, And fortunately she's 676 00:45:23.960 --> 00:45:29.559 with it to the point of asking that it didn't bother her. You know, 677 00:45:30.599 --> 00:45:32.840 Dean got an email moment said maybe a month ago about me it was 678 00:45:32.880 --> 00:45:37.880 a spam Sebastian, Yes, yes, asking to change direct deposit for my 679 00:45:37.880 --> 00:45:40.000 paycheck, so they're trying to get my checks sent to them rather than obviously 680 00:45:40.000 --> 00:45:44.440 myself. Yeah, well, here's the lookout for the scams, look out 681 00:45:44.480 --> 00:45:46.159 for the fishing. Of course, you always got to look out for the 682 00:45:46.159 --> 00:45:50.440 scams. People are always going to try to take advantage. But that's why 683 00:45:50.440 --> 00:45:52.840 you are with an advisor. If you're not sure, call us up. 684 00:45:52.079 --> 00:45:58.360 Here's a fun fact. Home prices doubled in Turkey in Turkey's capital action. 685 00:45:58.440 --> 00:46:00.159 And how did that happen? Yeah, well, actually led the world into 686 00:46:02.039 --> 00:46:05.519 and why would that happen. A lot of people don't realize, Well, 687 00:46:05.519 --> 00:46:07.000 just because the house goes up doesn't mean anything. It's probably the same value. 688 00:46:07.000 --> 00:46:12.639 Because Turkey's lira was devalued by over half in the third quarter, So 689 00:46:12.760 --> 00:46:15.960 you have half devaluation in your currency, you're gonna have a double in pricing 690 00:46:15.000 --> 00:46:19.679 in your homes. So you know that's that's one of those headlines that you'll 691 00:46:19.679 --> 00:46:21.599 read and be like, oh, maybe I should be investing in Turkey. 692 00:46:22.360 --> 00:46:25.760 No, you don't want to, do you want to line up for your 693 00:46:25.800 --> 00:46:30.440 for your next house in Turkey. Hey. By the way, Amazon revealed 694 00:46:30.519 --> 00:46:36.039 last week the starting January twenty ninth. Get this advertisements will be incorporated into 695 00:46:36.079 --> 00:46:38.199 Prime Video. Yeah, they mentioned that about a month ago, and that's 696 00:46:38.239 --> 00:46:42.480 really going to be an interesting new revenue play for that business. And it 697 00:46:42.519 --> 00:46:45.000 doesn't seem like it. If people don't want the ads, I think they 698 00:46:45.039 --> 00:46:47.039 gotta pay an extra four bucks, two dollars and ninety nine cents. I 699 00:46:47.079 --> 00:46:50.559 did it last night. There you go, two dollars and ninety nine cents. 700 00:46:50.559 --> 00:46:53.639 And I'm thinking pretty soon it's going to be hard to distinguish my cable 701 00:46:53.639 --> 00:46:58.360 bill from my mortgage. Well, that was always gonna be gonna be pretty 702 00:46:58.360 --> 00:47:00.239 close. It's creeping up on it, of course, you know, coming 703 00:47:00.320 --> 00:47:04.679 up on the outside. The only diff's between the cable and the streaming that 704 00:47:04.719 --> 00:47:07.679 will be is the people who want to choose one thing or the other don't 705 00:47:07.679 --> 00:47:09.800 have to have the entire bundle involved. You can be more all the part 706 00:47:10.159 --> 00:47:14.119 rather than you can. But then here's the thing. So you get this 707 00:47:14.119 --> 00:47:16.320 new show that comes on it is on such and such a channel, or 708 00:47:16.360 --> 00:47:21.960 they throw an NFL game on Peacock right like they did last week, and 709 00:47:22.039 --> 00:47:25.039 you don't have Peacock. They get you with the live sports, that's for 710 00:47:25.079 --> 00:47:28.880 sure. But yeah, I and that's just all over the place right now, 711 00:47:28.960 --> 00:47:30.800 drop one, get another one. You're going to go right Yeah, 712 00:47:30.840 --> 00:47:32.920 we're coming up on a break, coming to the end of the first hour 713 00:47:32.960 --> 00:47:36.800 of The Money Matter Show. Thanks for taking time to be with us on 714 00:47:36.840 --> 00:47:39.960 this New Year's Eve, before you go out and rip it up and before 715 00:47:39.960 --> 00:47:45.960 I go to bed, well be back right after this break. Say it's 716 00:47:45.000 --> 00:47:55.960 only a name. Good morning, Welcome back to the New Year's Eve edition 717 00:47:57.079 --> 00:47:59.920 of The Money Matters Show. I'm dave sure what I'm here with the best 718 00:48:00.079 --> 00:48:05.440 in Borshini and Todd Glick Junr. The green Bergs are traveling and we wish 719 00:48:05.519 --> 00:48:09.920 them well. Dean will be back in this seat two weeks from today. 720 00:48:10.639 --> 00:48:15.519 So this week and next week you're gonna get us the three of us, 721 00:48:15.000 --> 00:48:19.639 the three Musketeers, if you will, And then the green Berks will be 722 00:48:19.639 --> 00:48:22.280 back and we'll be back to a full staff. So for the people who 723 00:48:22.280 --> 00:48:24.760 are just joining us, that will go through the market and how they finished 724 00:48:24.760 --> 00:48:28.880 the week and the year. The doll was up point eight percent on the 725 00:48:28.880 --> 00:48:32.599 week. It's now trading at thirty seven, six hundred and eighty nine dollars, 726 00:48:34.239 --> 00:48:37.639 well not dollars, technically points yeah, point point yam. For the 727 00:48:37.679 --> 00:48:39.000 year, the doll was up thirteen point seven percent. The S and P 728 00:48:39.119 --> 00:48:43.079 five hundred was up point three percent on the week. It now is at 729 00:48:43.320 --> 00:48:46.960 forty seven sixty nine. For the year, it was up twenty three twenty 730 00:48:46.960 --> 00:48:52.639 four point two percent. The Nasdaq was up point one percent. Now it 731 00:48:52.719 --> 00:48:55.960 is at fifteen twenty three. The NASDAK composite. That is, for the 732 00:48:57.039 --> 00:49:00.440 year, it was up forty three point four percent, the best year for 733 00:49:00.480 --> 00:49:05.079 the NAZAQ since twenty twenty. And then we also talked about the fact that 734 00:49:05.119 --> 00:49:07.119 oil was down on the week. It's had the first annual decline since twenty 735 00:49:07.159 --> 00:49:13.280 twenty. Gold was up on the year thirteen percent this year, and then 736 00:49:13.760 --> 00:49:16.719 the tenure US interest rate stayed exactly where it started the year. I thought 737 00:49:16.719 --> 00:49:22.480 it was interesting to see oil down with Russia cutting back on productions. How 738 00:49:22.519 --> 00:49:28.840 do Arabia cutting back on production? Two wars going on. You would think 739 00:49:29.800 --> 00:49:36.199 oil would be higher, but I think the surprising weakness in the Chinese economy 740 00:49:36.719 --> 00:49:43.960 that continues is weighing on oil. Yeah, that makes sense, and however, 741 00:49:44.079 --> 00:49:45.519 there is a floor. You can see it every time it gets down 742 00:49:45.519 --> 00:49:51.360 to sixty nine. Volume spikes up because the United States is refilling the spr 743 00:49:51.480 --> 00:49:53.559 there, I hope, Well, no, you could. I saw it. 744 00:49:53.599 --> 00:49:57.800 The volume was so high that there's no way it was a big maker. 745 00:49:57.840 --> 00:50:00.440 I mean, maybe it was another country, but it definitely looks like 746 00:50:00.480 --> 00:50:01.519 they refilled it. And I think I saw a report that they made their 747 00:50:01.519 --> 00:50:06.079 first purchase for I mean, I remember Biden had sold oil in the high 748 00:50:06.159 --> 00:50:10.880 nineties for all the wrong reasons. Okay, never mind why he told it, 749 00:50:12.239 --> 00:50:15.440 but then buying it back under seventy one of the best trades ever, 750 00:50:15.599 --> 00:50:19.119 right, Yeah, And I hope that they're able to something. You should 751 00:50:17.840 --> 00:50:22.480 find to print the money to do that, because they need to get that 752 00:50:22.519 --> 00:50:28.840 refilled. It it's like taking your savings and then like basically going on a 753 00:50:28.880 --> 00:50:30.559 loan. I mean, it's basically what it is, right I yeah. 754 00:50:30.679 --> 00:50:34.119 But you know, if you sell something ninety, are you shorting of stock 755 00:50:34.199 --> 00:50:36.679 seven and buy it back at sixty seven, that's a pretty good deal. 756 00:50:36.960 --> 00:50:39.039 Well yeah, but if it's your if you use two reserves, you shouldn't 757 00:50:39.039 --> 00:50:44.039 be doing that with your reserves. Well, now you're getting into a whole 758 00:50:44.079 --> 00:50:47.719 other area planning in general. Like I said, why as the corporation a 759 00:50:47.800 --> 00:50:53.960 government or an individual. Your emergency savings, your emergency reserves is for emergencies. 760 00:50:54.079 --> 00:50:58.559 And I supposed to like play around with that. Last time I checked 761 00:50:59.039 --> 00:51:02.320 when I was when I was over in California. We were in Amazon picking 762 00:51:02.400 --> 00:51:07.159 up some some items, and I was with my daughter and her husband. 763 00:51:07.639 --> 00:51:10.000 I'm sorry, in Whole Foods, thank you, thank you. I was 764 00:51:10.039 --> 00:51:15.159 in Whole food thank you, Amazon owned by Amazon Company, Whole Foods. 765 00:51:15.800 --> 00:51:19.719 Uh. Anyway, I was it with with my my daughter and her husband 766 00:51:19.719 --> 00:51:22.519 and the two kids and my wife, and we got to the checkout counter 767 00:51:23.039 --> 00:51:27.559 and I said, uh, let me get this, and I put my 768 00:51:27.679 --> 00:51:32.519 palm out there and I paid for it with my palm. And they were 769 00:51:32.559 --> 00:51:37.559 blown away because you're old, and it's like, how do they know how 770 00:51:37.559 --> 00:51:38.800 to do that? How would I know more than them? Right then, 771 00:51:38.800 --> 00:51:40.440 they were like, well, how do you how do you do that? 772 00:51:40.480 --> 00:51:44.639 What do you you know? My daughter and her husband well, but it's 773 00:51:44.679 --> 00:51:47.280 it's very cool, so they like, read your hands there, Yeah, 774 00:51:47.320 --> 00:51:51.840 what you do? Yeah, you go online and you get a QR code 775 00:51:52.119 --> 00:51:57.320 and then you go into any Amazon retail location and you go to the palm 776 00:51:57.360 --> 00:52:00.519 reader and it's kind of like the facial record NISS on your phone. How 777 00:52:00.599 --> 00:52:05.199 you know you move around and see different sides of your faces. Do that 778 00:52:05.239 --> 00:52:07.920 with your palm. You move your palm around and I used to have those 779 00:52:07.960 --> 00:52:10.840 buttons, and you know you put your thumbprint on it. But yet yeah, 780 00:52:10.920 --> 00:52:15.119 yeah, you roll it, roll it around and uh and then you 781 00:52:15.119 --> 00:52:16.880 can pay. So I have a whole Food's a mile from my house and 782 00:52:16.920 --> 00:52:22.079 I'm there probably a couple times a week, and I walk with my palm. 783 00:52:22.519 --> 00:52:25.360 I'm going I think probably the best use of this is going to be 784 00:52:25.400 --> 00:52:31.119 in cutting down on our shop lifting epidemic. We have a shoplifting epidemic in 785 00:52:31.159 --> 00:52:37.360 this country thanks to the legislators, primarily in California saying anybody at card deals 786 00:52:37.440 --> 00:52:42.719 one thousand less than a thousand dollars can't be prosecuted seriously going to help see, 787 00:52:42.840 --> 00:52:45.559 Okay, So here's how we're going to do it going forward. You 788 00:52:45.599 --> 00:52:52.079 cannot enter the store without scanning your palm. You scan the palm, the 789 00:52:52.199 --> 00:52:54.159 door, the gate opens, and you can go into the store. It 790 00:52:54.199 --> 00:52:59.039 sounds great, Dave, until you realize the host of privacy issues you just 791 00:52:59.079 --> 00:53:05.480 open the door to. I'm not concerned about people knowing my palm print. 792 00:53:05.760 --> 00:53:08.000 That's not the issue. Someone, What do you see as the issue? 793 00:53:08.039 --> 00:53:12.960 You will see every time when someone shopped, when they shopped, where they 794 00:53:13.000 --> 00:53:16.960 shopped. Probably you could even tell why they shopped, and you could monitor 795 00:53:17.000 --> 00:53:21.800 their cell phone and find out the same You don't have that same access right 796 00:53:21.840 --> 00:53:24.840 now. Amazon can't just go into your We've got to do something about this 797 00:53:24.960 --> 00:53:29.039 shop with an epidemic, and we've got okay, so maybe we have to 798 00:53:29.039 --> 00:53:31.559 give up something, right, I mean that's everything in life. Solve some 799 00:53:31.679 --> 00:53:35.360 things, but you open the issue to other things. I mean that we 800 00:53:35.440 --> 00:53:37.360 know technology is so great, it's made our lives so much easier, but 801 00:53:37.440 --> 00:53:42.760 we've never had an issue. We have less privacy now than we ever have 802 00:53:43.280 --> 00:53:49.400 had before. What was the greatest technology and the worst technology in the last 803 00:53:49.480 --> 00:53:53.599 half of the last century. The Internet. Yeah, it was the best 804 00:53:53.800 --> 00:53:58.400 and it was the worst. Right, it was both social media and and 805 00:53:58.519 --> 00:54:04.440 AAI is going to be the best and the worst over the next five years. 806 00:54:04.519 --> 00:54:07.559 Yes, to me, it's it's a little pet peep of mind when 807 00:54:07.559 --> 00:54:13.159 people talk about technology, how the newest technologies are always used by criminals. 808 00:54:13.159 --> 00:54:15.920 First, No, it's true, okay, it's how it has always worked. 809 00:54:16.119 --> 00:54:20.440 The first pagers were picked up by criminals, the first iPhones. You 810 00:54:20.480 --> 00:54:22.360 know, it's always the criminals are cutting edge. So when people are like, 811 00:54:22.559 --> 00:54:25.639 that's just used by criminals, you know, your money laundering schemes, 812 00:54:25.679 --> 00:54:30.400 like that's how most things start out. And so yeah, I hear you 813 00:54:30.440 --> 00:54:34.280 one hundred percent. You know, there's gives and takes to everything. Some 814 00:54:34.320 --> 00:54:37.480 people are gonna say it's bad at first, turns into great things. But 815 00:54:37.800 --> 00:54:40.840 you it is a sacrifice, right this world is there's no black or white 816 00:54:40.880 --> 00:54:45.079 answers, especially when it comes to something so multi facet it is. It 817 00:54:45.159 --> 00:54:50.920 is. It is a solution to this huge problem that's causing companies to close 818 00:54:51.800 --> 00:54:54.960 walgranges. The biggest issue at the end of the day is the socioeconomic issue 819 00:54:55.000 --> 00:54:59.960 of the what you're talking about. We're talking about DC, Chicago, LA. 820 00:55:00.480 --> 00:55:06.280 Legislators doing nothing that actually change the infrastructure, the institutions in those communities 821 00:55:06.320 --> 00:55:09.599 that have continuously made the progress, and the cycles of what's happened in those 822 00:55:09.639 --> 00:55:15.280 communities continue and even exceed and get worse than over the years. That's the 823 00:55:15.320 --> 00:55:22.679 issue. It's education. It's educating those lower socioeconomic status people that don't have 824 00:55:22.760 --> 00:55:27.119 the education and who think this is actually okay to do in the long run. 825 00:55:27.199 --> 00:55:29.960 But the secretary of State in Maine can tell you who's going to be 826 00:55:30.000 --> 00:55:31.719 on the ballot, who you're going to vote for. One person sitting in 827 00:55:31.760 --> 00:55:36.320 an office in a cubicle in Maine is going to tell us who we can 828 00:55:36.400 --> 00:55:40.440 vote for. That's just a yeah. Or a group of people in Colorado 829 00:55:40.440 --> 00:55:45.920 are deciding, I mean that they know more than the group of Americans that 830 00:55:45.039 --> 00:55:50.559 is makes up United States. It's unbelievable and hopefully the Supreme Court will take 831 00:55:50.559 --> 00:55:54.119 that up. And it's just it isn't right that anyone tell us, well, 832 00:55:54.159 --> 00:55:57.360 not only we can vote for Dave. You told us a couple of 833 00:55:57.360 --> 00:55:59.800 months ago, and I was shocked when you told me this. You said, 834 00:55:59.800 --> 00:56:01.719 what requirements to be a president? I said, you have to be 835 00:56:01.760 --> 00:56:05.000 over thirty five and you can't have a felony, right, And you said, 836 00:56:05.000 --> 00:56:07.039 well, that's actually not true. You can have a felony and still 837 00:56:07.039 --> 00:56:09.880 be president. Absolutely yeah. So the fact that they think they have anything 838 00:56:09.880 --> 00:56:14.119 on Trump, even if he's a felon, legally, he's still allowed to 839 00:56:14.159 --> 00:56:17.880 run for president. So how are they have any authority to channish all fourteenth 840 00:56:17.880 --> 00:56:23.199 Amendment, which is which was from the Civil War because they didn't want people 841 00:56:23.239 --> 00:56:30.480 from the South taking control of the government, so they put the fourteenth Amendment 842 00:56:30.519 --> 00:56:35.559 in which essentially allows someone who has been involved in an overthrow of the government 843 00:56:36.280 --> 00:56:38.760 or an attempt to overthrow the government, it prohibits them from running. That's 844 00:56:38.800 --> 00:56:43.639 what they're hanging their hat on. Unfortunately, he hasn't been convicted of anything. 845 00:56:43.719 --> 00:56:46.559 And also the overthrow of your of a government is very subjective. Yeah, 846 00:56:47.079 --> 00:56:50.840 I can, I can make a case of a thousand different versions of 847 00:56:50.880 --> 00:56:52.719 what that means. I mean, we just this is just a road we 848 00:56:52.800 --> 00:56:58.760 can't go down, and that the Colorado Supreme Court and now the Secretary of 849 00:56:58.800 --> 00:57:00.920 State. Are you kidding me? People? For game? Freedom of speech 850 00:57:01.079 --> 00:57:05.000 really means. I mean, obviously we know you can't say fire in a 851 00:57:05.119 --> 00:57:08.079 movie theater, but for the most part, when people say something you really 852 00:57:08.119 --> 00:57:12.079 don't like, you still have to let them say it, because if something 853 00:57:12.079 --> 00:57:15.719 goes down the road and that becomes normal, you're not gonna be able to 854 00:57:15.719 --> 00:57:19.800 say the right thing. We have to allow free speech, even if someone's 855 00:57:19.800 --> 00:57:25.360 saying really terrible stuff. It has to be somewhat allowed because you can't choose 856 00:57:25.400 --> 00:57:30.239 what's bad because then that one person gets to decide what's bad, and then 857 00:57:30.360 --> 00:57:34.039 that one person is right or wrong. They're basically God in the idea of 858 00:57:34.119 --> 00:57:37.880 virtue. So it's a very scary thing when you try to pick and choose 859 00:57:37.079 --> 00:57:40.199 what freedom of speech means. I agree. And then who's on the ballot? 860 00:57:40.280 --> 00:57:45.400 I mean you just you. We vote. We signed petitions to get 861 00:57:45.400 --> 00:57:50.159 people on the ballot, right, and if they've gone through that process to 862 00:57:50.159 --> 00:57:52.199 get on the ballot, they should be on the ballot. It shouldn't be 863 00:57:52.320 --> 00:57:57.679 some person sitting and I don't know if it's a man or woman in the 864 00:57:57.719 --> 00:58:00.559 Sectary of State's office and mayng go no, oh, he can't be in 865 00:58:00.599 --> 00:58:05.840 a ballot. No, seriously, you don't have that authority. So hopefully 866 00:58:05.880 --> 00:58:08.480 the Supreme Cortin will jump out that has picked up a lot of gain this 867 00:58:08.559 --> 00:58:12.679 year. Is the buy now, pay later? Yes? Yeah, I 868 00:58:12.679 --> 00:58:16.039 mean yeah, it seemed like it was dying, which for us to not 869 00:58:16.199 --> 00:58:19.800 know it's kind of funny looking back on it. We're Americans, right, 870 00:58:19.800 --> 00:58:22.920 what do we love debt? So we love more of after that, more 871 00:58:22.960 --> 00:58:25.639 debt, So it makes a lot of sense. Seabats talked about how they're 872 00:58:25.679 --> 00:58:29.440 using credit cards to pay off a firm. You're using credit to pay off 873 00:58:29.440 --> 00:58:32.079 credit, right, talk about something bad for people of lower Yeah, and 874 00:58:32.119 --> 00:58:35.960 Seabats asked me, well, don't you think they're going to create regulations to 875 00:58:36.000 --> 00:58:39.840 stop this? Is absolutely not Why would they destroy a money layer? Yeah, 876 00:58:39.880 --> 00:58:43.199 you know that's if this is a new money layer that has never been 877 00:58:43.199 --> 00:58:46.039 invented before, where you can pay credit with credit using a firm. And 878 00:58:46.079 --> 00:58:50.039 so this buy now, pay later is why a firm was up roughly four 879 00:58:50.079 --> 00:58:52.280 hundred percent for the year, one of the biggest returns for any stock above 880 00:58:52.559 --> 00:58:54.719 But I think it was like ten million mark cap or something like that. 881 00:58:54.800 --> 00:58:58.960 But I remember when I first got got my first significant bonus, it was 882 00:58:59.000 --> 00:59:02.719 like, oh, I have savings. I have spent my entire life perfecting 883 00:59:02.760 --> 00:59:08.719 debt management. What am I supposed to do with this? You know? 884 00:59:08.800 --> 00:59:13.920 So, so as Americans, we are very good at debt management. Well 885 00:59:14.679 --> 00:59:17.239 I don't know about maybe not maybe not that good. Very good at accumulation, 886 00:59:17.519 --> 00:59:22.000 yes, yeah, And I guess that we have record credit card debt 887 00:59:22.039 --> 00:59:24.199 and everybody's still walking around and driving and we had a good Christmas, right, 888 00:59:24.239 --> 00:59:29.239 So I guess we're pretty good at management too. Apparently we're good accumulating 889 00:59:29.239 --> 00:59:31.519 it because credit card debts are at all time highs. Well, the credit 890 00:59:31.559 --> 00:59:35.000 card companies are really good at telling us if you just switch over here, 891 00:59:35.079 --> 00:59:38.519 we'll give you no interest for certain months. I mean, it's it's got 892 00:59:38.599 --> 00:59:42.159 to be an art. I mean, I bet there are people out there 893 00:59:42.199 --> 00:59:46.239 that I have people in my life who are just experts at getting every dime 894 00:59:46.280 --> 00:59:52.480 out of every tomato, right. And and I'll bet there is a way 895 00:59:52.639 --> 00:59:57.440 that you can have massive credit card debt and never pay interest, just keep 896 00:59:57.480 --> 01:00:00.599 moving it around even thing you know, you at events they have a really 897 01:00:00.039 --> 01:00:05.440 sorry, really bad credit score. But you talked about you know, you 898 01:00:05.480 --> 01:00:10.679 did talk about weight loss drugs, and this is interesting. So many companies 899 01:00:10.719 --> 01:00:15.639 are coming out of the woodwork now with their with their new weight loss drug 900 01:00:15.440 --> 01:00:21.199 And I was coming back from from some one of the other scams that's out 901 01:00:21.199 --> 01:00:27.119 there before we leave scams is Elon Musk, right, and not that Elon 902 01:00:27.199 --> 01:00:29.760 Musk is a scam, but I can't tell you the number of things that 903 01:00:29.800 --> 01:00:35.519 I've seen that was developed by Elon Musk. We're coming back from from California, 904 01:00:35.599 --> 01:00:37.039 My wife's in the We're in the car. My wife's really he goes, 905 01:00:37.239 --> 01:00:43.159 look at this. Kelly Clarkson lost like forty pounds with an Elon Musk 906 01:00:44.119 --> 01:00:50.039 oral diet pill. No, no, there are no oral diet pills first 907 01:00:50.079 --> 01:00:54.639 of all, that are effective. Pfizers abandoned their efforts. There are other 908 01:00:54.679 --> 01:01:00.480 companies, but this reminds me so much, and there were there just Elon 909 01:01:00.559 --> 01:01:04.119 Musk. And you see around that it's a device that you plug into your 910 01:01:04.159 --> 01:01:08.000 house and it reduces your electric bill. You might have seen that Elon Musk 911 01:01:08.159 --> 01:01:12.280 came up with. Elon Musk had nothing to do with this, but this 912 01:01:12.360 --> 01:01:15.280 is one of those scams. And I asked my electrician advisors, is this 913 01:01:15.320 --> 01:01:17.639 for really goes? No, it's not absolutely no, absolutely not. But 914 01:01:17.679 --> 01:01:22.000 it's always with the Elon Musk. That's that gives you credibility in this. 915 01:01:22.519 --> 01:01:24.960 And of course my wife went on to Google. I don't know why it's 916 01:01:24.960 --> 01:01:29.800 so credible. I mean, wasn't he pounding on a doge coin. I 917 01:01:29.840 --> 01:01:34.360 think it's because we see him as someone who is smarter than the rest of 918 01:01:34.440 --> 01:01:37.079 us. That's a good point. I think maybe that's why that he could 919 01:01:37.119 --> 01:01:39.719 come up with this stuff. Nobody else could, but he could come up 920 01:01:39.760 --> 01:01:43.599 with this. Also the fact that he's in so many different business ventures. 921 01:01:43.639 --> 01:01:47.000 People have that trust in him, something I talked about earlier in this show. 922 01:01:47.159 --> 01:01:50.719 When the S and P five hundred, it's closing in on a new 923 01:01:50.760 --> 01:01:54.280 all time high, it has been nearly two years since it hit an all 924 01:01:54.360 --> 01:02:00.480 time high. Yep. This chart has found fourteen previous times it went at 925 01:02:00.599 --> 01:02:05.360 least one year without an all time high, right, uh, and then 926 01:02:05.400 --> 01:02:10.079 finally made one. Normally, it's higher a year later, thirteen times out 927 01:02:10.119 --> 01:02:15.719 of I can't sorry, Well, it's it's on up. It's up on 928 01:02:15.800 --> 01:02:20.920 average fourteen point nine percent a year later when it nears an all time after 929 01:02:21.000 --> 01:02:22.360 hitting an all time after hitting a new all time high. So that is 930 01:02:22.400 --> 01:02:28.480 not necessarily getting me out time, right, And it's it just was a 931 01:02:28.639 --> 01:02:31.679 I'm so surprised that that return is so high. Yeah, it is shocking. 932 01:02:31.920 --> 01:02:35.599 Could you think what things are when you hit an all time high? 933 01:02:35.719 --> 01:02:37.559 But again that that's the momentum in the economy. Yeah, you know. 934 01:02:38.239 --> 01:02:42.360 Really what to say is new highs aren't bearish, right, And Greenspan came 935 01:02:42.360 --> 01:02:45.000 out with that irrational exuberance comment probably in the eighties. I don't even remember 936 01:02:45.000 --> 01:02:52.039 when it was, but the market did continue to go higher and higher four 937 01:02:52.079 --> 01:02:55.880 months after that before before it finally rolled over. Just to finish my weight 938 01:02:55.920 --> 01:03:00.960 loss thing. Okay, there are so many companies come not It reminds me 939 01:03:00.000 --> 01:03:05.519 of the covid vaccines right when they when the covid vaccine. Everybody's clamoring for 940 01:03:05.559 --> 01:03:10.760 covid vaccines and and everybody was coming up with covid vaccines, everybody except Merk. 941 01:03:10.960 --> 01:03:15.760 For whatever reason, Mirke was sound asleep and never Parchas. I had 942 01:03:15.800 --> 01:03:17.199 no idea why well, yeah, let's let's talk about it a little bit. 943 01:03:17.239 --> 01:03:21.039 You know, covid vaccines the biggest thing, you know, probably going 944 01:03:21.079 --> 01:03:24.159 into twenty twenty two, and how that would perform. They did all right, 945 01:03:24.760 --> 01:03:29.559 then twenty twenty three, one of the top losers in the S and 946 01:03:29.639 --> 01:03:35.599 P five hundred, number four, MODERNA, number five, Moderno lost forty 947 01:03:35.599 --> 01:03:39.760 four percent. Visor lost forty four percent in twenty twenty three. So you 948 01:03:39.880 --> 01:03:45.119 saw that that whole betting on vaccines to continue and people are going to continue 949 01:03:45.159 --> 01:03:50.079 to take them just didn't happen. And on this show with Fizer, Fitch 950 01:03:50.159 --> 01:03:53.480 five dollars a share, multiple weeks we said, get out of it, 951 01:03:53.679 --> 01:03:58.960 get out. This COVID thing is going to end. And and they're they're 952 01:03:59.719 --> 01:04:04.639 this entire stock prices based upon this covid vaccine and it's going to end. 953 01:04:05.199 --> 01:04:10.719 Every every pandemic does. And when it does, people aren't gonna want the 954 01:04:10.920 --> 01:04:14.360 vaccine. Look at now, they thought twenty five percent of people would get 955 01:04:14.400 --> 01:04:18.239 the vaccine this time. I don't think it's anywhere near that. So the 956 01:04:18.239 --> 01:04:23.440 top seven losers in the S and P five hundred this year, FMC Corp, 957 01:04:24.000 --> 01:04:27.000 in Phase Energy. Don't know either those two. But then they're the 958 01:04:27.039 --> 01:04:30.960 ones we know, Dollar General, Moderna, Peiser, sd Lauder, and 959 01:04:30.000 --> 01:04:34.360 pay Comm Software. Not Walgreens. I don't. Well, technically it might 960 01:04:34.400 --> 01:04:38.280 not be in the SMP. Walgreen has to be in the SP if it's 961 01:04:38.280 --> 01:04:41.719 a dowstock. Oh well, it wasn't up there. I mean, maybe 962 01:04:41.719 --> 01:04:45.119 that three percent gang got it out as of when this was probably a day 963 01:04:45.320 --> 01:04:49.679 ago. Okay, because you know we've talked, We talked a lot on 964 01:04:49.719 --> 01:04:53.719 the show about the dogs of the Dow right, right, And in twenty 965 01:04:53.760 --> 01:04:57.480 twenty one, Boying was the dog, and then in twenty two it was 966 01:04:57.480 --> 01:05:00.760 one of the better ones In twenty two, Salesforce dot Com was the dog. 967 01:05:01.239 --> 01:05:04.480 In twenty three, it was one of the better ones. In twenty 968 01:05:04.559 --> 01:05:10.119 three, the dog was Walgreens. And guess what's happened to Walgreens. It's 969 01:05:10.199 --> 01:05:15.599 rallied thirty three percent in the last thirty days. Thirty three percent in the 970 01:05:15.679 --> 01:05:18.239 last thirty days. You sure they report next weekend? Yeah, full disclosure. 971 01:05:18.280 --> 01:05:21.719 We've got a total of about twenty five hundred shares of Walgreens stock in 972 01:05:21.800 --> 01:05:26.239 various accounts. Some of our personal accounts have a little bit of Walgreens. 973 01:05:26.360 --> 01:05:30.320 We're not hyping the stock here. We're not even suggesting you buy the stock. 974 01:05:30.639 --> 01:05:32.800 This is simply an observation, that's all. It is just simply an 975 01:05:32.800 --> 01:05:39.320 observation. How now, three years in a row, the stock that you 976 01:05:39.360 --> 01:05:43.679 couldn't give away has become all of a sudden become more popular one Now, 977 01:05:43.679 --> 01:05:46.079 should this be a dead cat bounce for Walgreens? You know a dead cat 978 01:05:46.159 --> 01:05:49.400 bounce? Right, you drop a cat from a thirty story building, it'll 979 01:05:49.480 --> 01:05:54.079 it'll bounce. Doesn't mean it's alive. Are you catching that knife? Yeah? 980 01:05:54.079 --> 01:05:57.039 Speaking about observation, so here right now, I don't hate cats. 981 01:05:57.159 --> 01:06:00.440 Okay, that was not a comment on cats. It's just a it's term 982 01:06:00.719 --> 01:06:02.880 people you I think I'd say I'm a dog person, but here a dog 983 01:06:02.880 --> 01:06:06.239 person. But I don't mindcast you're at Greenberg. We have something called by 984 01:06:06.280 --> 01:06:09.880 list, right, which is essentially a list of stocks, so we could 985 01:06:09.920 --> 01:06:12.800 keep a close tab on, keep an eye on him, and look for 986 01:06:12.800 --> 01:06:16.440 opportunities buy there's This is something that we update every two weeks with the help 987 01:06:16.480 --> 01:06:23.159 of morning Star upgrades and downgrades using their Star rating method, which is an 988 01:06:23.199 --> 01:06:27.800 objective way to measure the fund's risk adjusted return, which is that sharp ratio 989 01:06:27.800 --> 01:06:32.280 that Todd was talking about earlier. So for the first time ever since I 990 01:06:32.320 --> 01:06:35.239 started here as an intern back in January, as updating the list this week, 991 01:06:35.840 --> 01:06:40.880 and I did not have a single upgrade. One hundred and fifty stocks 992 01:06:40.920 --> 01:06:44.840 on our list. With that, my updates consisted of fifteen downgrades and keeping 993 01:06:44.880 --> 01:06:47.320 the rest neutral. Typically, every single two weeks that I do this, 994 01:06:47.760 --> 01:06:53.519 you know there's probably ten upgrades, ten downgrades. This time it was flat 995 01:06:53.679 --> 01:06:58.760 all downgrades. Where this is just a interesting observation and I think it encapsulates 996 01:06:58.880 --> 01:07:01.480 the where we're right in the market at this time. Yeah, possibly the 997 01:07:01.519 --> 01:07:04.639 only issue is the last two weeks of the year, there's there's so little 998 01:07:04.800 --> 01:07:10.239 new evidence of anything coming out. It's that's a good point. Yeah, 999 01:07:10.280 --> 01:07:13.920 there's not a lot to view into that, but there are At the end 1000 01:07:13.960 --> 01:07:16.199 of the day. It's an ever changing landscape, and that's why we have 1001 01:07:16.239 --> 01:07:19.840 to have a list of stocks that we're looking at. And people all the 1002 01:07:19.840 --> 01:07:23.039 time ask us, how do we do the job we do? How do 1003 01:07:23.079 --> 01:07:27.119 we how are we able to stay on top of everything in a world that's 1004 01:07:27.159 --> 01:07:30.639 ever changing, And the reality of it is is we have great systems put 1005 01:07:30.639 --> 01:07:34.239 into place. We have great software that allows us to easily check all accounts 1006 01:07:34.239 --> 01:07:40.159 at once. We can easily look at each position, look at asset allocation 1007 01:07:40.280 --> 01:07:43.199 for each account, and that's really what allows us to do their job. 1008 01:07:43.239 --> 01:07:45.119 Because we talk about this on the show all the time. We're truly the 1009 01:07:45.119 --> 01:07:47.840 money managers. We are the one actually making the trades, We're the one 1010 01:07:47.880 --> 01:07:53.039 actually making the decisions. So we want to know that we are doing the 1011 01:07:53.039 --> 01:07:56.360 best job for you. So we've invested a lot in our team and in 1012 01:07:56.400 --> 01:07:59.719 our software to make sure we have the best systems put into place so we 1013 01:07:59.760 --> 01:08:02.039 can service everyone with that. We talked a little bit about the S and 1014 01:08:02.039 --> 01:08:05.880 P five hundred. It's losers, top losers of the year, the top 1015 01:08:05.880 --> 01:08:09.440 gainers of the year. In Navidio. We've already talked about that. We 1016 01:08:09.440 --> 01:08:13.119 already talked about meta. Something we haven't talked about has been the cruise lines 1017 01:08:13.760 --> 01:08:17.279 Royal Caribbean one hundred and thirty eight percent for the year, roughly, Carnival 1018 01:08:17.319 --> 01:08:21.239 up roughly one sixteen. Palo Alto rounded out the top five. But let's 1019 01:08:21.239 --> 01:08:25.520 talk about cruises here a little bit, something that wasn't talked about a whole 1020 01:08:25.520 --> 01:08:30.119 lot on the shows of financial TV shows and things like that, but obviously 1021 01:08:30.199 --> 01:08:33.760 had a great year. Talk a little bit about your experience with cruises over 1022 01:08:33.760 --> 01:08:40.039 the last two or three years, Dave the huge dropping me right. Remember 1023 01:08:40.079 --> 01:08:42.920 after we came out of the pandemic, there was just thinking that the cruise 1024 01:08:42.920 --> 01:08:45.920 lines, because they had really gotten beat up during the pandemic, it was 1025 01:08:45.319 --> 01:08:48.159 they were going to be the place to be turned out. It took a 1026 01:08:48.239 --> 01:08:53.520 lot longer than anyone expected for them to come back to life, and they 1027 01:08:53.560 --> 01:08:59.439 finally stocks were languishing down in the pandemic low area and you really couldn't in 1028 01:08:59.479 --> 01:09:02.279 good content and buy them for anyone because you didn't know whether we're going to 1029 01:09:02.279 --> 01:09:05.479 have a recession before they woke up or not, and they've just woken up 1030 01:09:05.520 --> 01:09:10.279 within the last ninety days or so. I would hit the I would hit 1031 01:09:10.279 --> 01:09:13.760 the bid on these. I've I've actually taken some of the money out of 1032 01:09:13.760 --> 01:09:16.960 the cruise line stocks because I think once the economy, yeah, I think 1033 01:09:17.000 --> 01:09:20.399 when the economy slows, which it will next year, right, I still 1034 01:09:20.520 --> 01:09:24.840 hit the bid, hit the take the offer, whatever it is. Well, 1035 01:09:24.840 --> 01:09:28.520 no, hit the bid. Hit the bid. S hit the bid. 1036 01:09:28.920 --> 01:09:31.720 Someone's bidding for the stock. Hit it, sell it right, hit 1037 01:09:31.760 --> 01:09:35.680 the bid. Yeah. The bottom line is, I don't know how high 1038 01:09:35.720 --> 01:09:41.800 the cruise stocks go, but I think that once the if the economy does 1039 01:09:41.840 --> 01:09:45.680 start to slow, and you've said earlier that with the higher interest rates, 1040 01:09:45.760 --> 01:09:48.479 you expect the economy to slow. I do too. If the economy starts 1041 01:09:48.520 --> 01:09:51.680 to slow, I think cruise lines and airlines are going to be impacted, 1042 01:09:51.960 --> 01:09:57.439 probably more quickly than most others. And we know it's already slowed because you 1043 01:09:57.520 --> 01:10:00.680 just look at CPI. Yeah right, we had a all time high at 1044 01:10:00.720 --> 01:10:05.960 nine. It's come down to two. Consumer price indeck, so we cpiose 1045 01:10:06.000 --> 01:10:09.840 growth. It shows growth, you know, more than anything. Right. 1046 01:10:09.880 --> 01:10:14.000 We saw GDP for quarter three, it was really high, a zero point 1047 01:10:14.079 --> 01:10:15.840 nine percent quarter of quarter. That's a huge quarter, right. I read 1048 01:10:15.880 --> 01:10:19.319 an article on Friday that companies are having more and more trouble with pricing power. 1049 01:10:19.399 --> 01:10:23.920 They're not able to just make the price whatever they want like they could 1050 01:10:24.159 --> 01:10:28.760 a year ago. And also, eventually these companies are going to get through 1051 01:10:28.800 --> 01:10:31.920 that cash pile which had been a historic highs in the last couple of years. 1052 01:10:32.000 --> 01:10:34.560 Yeah, it's logical that you're going to have a slowdown. I mean 1053 01:10:34.680 --> 01:10:41.520 right, I'm not suggesting recession, although the market is predicting recession version yep, 1054 01:10:41.640 --> 01:10:45.079 the inverted yield curve is predicting recession. If we have a recession, 1055 01:10:45.119 --> 01:10:50.640 cruise lines and airlines are vulnerable. And you've had an awfully nice rally in 1056 01:10:50.680 --> 01:10:56.439 the cruise line stocks. I know some people own cruise line stocks because they 1057 01:10:56.520 --> 01:11:00.560 can get a discount on the cruise right if they own in the stock. 1058 01:11:00.680 --> 01:11:04.840 So we've I've been dealing with that for years and I know that to be 1059 01:11:04.880 --> 01:11:10.560 the case. So if you if you hold fifty shares of Carnival because you 1060 01:11:10.600 --> 01:11:14.000 get a discount on the cruises, don't go selling it. But if you 1061 01:11:14.039 --> 01:11:16.319 thought it was a great place to have some money and bought a thousand shares, 1062 01:11:16.359 --> 01:11:19.119 it might be a place to peel back a little bit. We're coming 1063 01:11:19.159 --> 01:11:23.680 up on a break here, but I know we normally have a little bit 1064 01:11:23.680 --> 01:11:26.720 of EV garage, and I want to talk a little bit about EV's have 1065 01:11:26.760 --> 01:11:29.960 been some interesting developments in the China space. And let's do it in the 1066 01:11:30.319 --> 01:11:32.079 next next Let's do it on a break here. Let's do it in the 1067 01:11:32.079 --> 01:11:38.119 next segment. I've got a couple of EV things related to you know, 1068 01:11:38.800 --> 01:11:42.960 tan the the solar had lost sixty percent in the last two years, but 1069 01:11:43.039 --> 01:11:46.680 due to reach dropping, it's rally twenty percent in the last thirty days. 1070 01:11:46.720 --> 01:11:54.159 And that's that makes the that equation as to the break even on solar, 1071 01:11:55.119 --> 01:11:58.560 makes that equation better when interest rates are lower. Interest rates have gotten so 1072 01:11:58.680 --> 01:12:02.279 high that it was hard to justify. So the solar stocks had just gotten 1073 01:12:02.319 --> 01:12:06.079 blasted, like I say, down sixty percent in the last two years. 1074 01:12:06.359 --> 01:12:12.159 They're coming back and we'll be coming back right after this break. Thanks again 1075 01:12:12.199 --> 01:12:17.640 for joining us. Welcome back to the Money Matters Show. My name is 1076 01:12:17.680 --> 01:12:23.439 Tod Lick. I'm here with Sebastian Board Senior Dave Sherwood. Our partners, 1077 01:12:23.439 --> 01:12:26.920 the Greenberg's, are on vacation and they will be back in a couple of 1078 01:12:26.960 --> 01:12:30.239 weeks. You you're everyone stuck with the Three Musketeers for another week as well. 1079 01:12:30.399 --> 01:12:34.279 Yes, indeed, but we've had we've had a fun round out of 1080 01:12:34.319 --> 01:12:39.199 the year. We talked a little bit about EV's going into the last segment 1081 01:12:39.199 --> 01:12:45.319 of so let's talk about China's BYD Company, which bills itself as the biggest 1082 01:12:45.319 --> 01:12:50.000 car brand You've Never heard of BYD b YD Charlie Munger, the recently deceased 1083 01:12:50.079 --> 01:12:54.319 Charlie Munger's favor stock. It was one of his favorites. They might need 1084 01:12:54.439 --> 01:12:59.199 a different tagline soon because apparently the automakers poised to surpassed Tesla as the new 1085 01:12:59.239 --> 01:13:02.960 worldwide lead in fully electric vehicle cells. Now there's a lot you could look 1086 01:13:03.000 --> 01:13:04.840 at there. Is it a year? Is it daily? Is it? 1087 01:13:05.239 --> 01:13:10.520 What do they mean by new worldwide leader and fully electric vehicle cells? But 1088 01:13:10.600 --> 01:13:13.800 when it does, and that's likely to be quite soon, analysts think it 1089 01:13:13.800 --> 01:13:16.680 will be a symbolic turning point for the EV market and further confirmation of China's 1090 01:13:16.720 --> 01:13:21.800 growing clout in the global automotive industry, not to mention another bit about news 1091 01:13:21.920 --> 01:13:29.760 for you Long. I agree. And Tesla is struggling against BYD because BYD 1092 01:13:30.000 --> 01:13:33.239 is producing cars that are similar to Tesla at much lower prices. But that's 1093 01:13:33.560 --> 01:13:38.640 good for the American consumer. And I think some other things I'm starting to 1094 01:13:38.680 --> 01:13:42.680 see as a Tesla owner, I'm starting to see a lot of deals. 1095 01:13:43.199 --> 01:13:49.079 Right, refer us a friend and we'll give you this. And the prices 1096 01:13:49.119 --> 01:13:56.359 have been dropping steadily on the Tesla's Now they're throwing in six months free supercharging, 1097 01:13:57.479 --> 01:14:01.600 okay, which is not an insignificant thing as competition gross top We're going 1098 01:14:01.640 --> 01:14:05.279 to keep seeing more. The price is going to continue to edge lower into 1099 01:14:05.319 --> 01:14:10.439 twenty twenty four. Uh. Price and range, of course, range is 1100 01:14:10.720 --> 01:14:14.520 biggie have been the major stumbling blox. But price is a huge stumbling block. 1101 01:14:14.720 --> 01:14:16.239 The other stumbling block. And Todd you brought this up a couple of 1102 01:14:16.239 --> 01:14:23.079 weeks ago. Most cars purchased in the United States are used right about two 1103 01:14:23.119 --> 01:14:29.640 thirds, and there have been no used dvs, and that market is growing 1104 01:14:29.960 --> 01:14:32.720 dramatically for a lot of reasons. You know, you get an EV, 1105 01:14:32.880 --> 01:14:35.720 you don't like it. You know, thirty days into it, six months 1106 01:14:35.760 --> 01:14:40.800 into whatever. So there are more and more. I had a call today 1107 01:14:40.840 --> 01:14:45.640 from a client who is not an EV person necessarily, but he had this 1108 01:14:45.720 --> 01:14:49.479 is funny. They had they were flying and they had rented a car. 1109 01:14:49.800 --> 01:14:56.359 The only car available to them was a Tesla, so they went through the 1110 01:14:57.960 --> 01:15:01.479 gymnastics of learning about how to use this Tesla. And these are these are 1111 01:15:02.239 --> 01:15:08.800 right leaning elderly people who aren't really that interested in hearing about anything electric, 1112 01:15:09.239 --> 01:15:11.920 and they've been given to Tesla. Then they're going to have to deal with 1113 01:15:11.960 --> 01:15:15.119 it. Well, now he's back from his vacation and he wants to get 1114 01:15:15.159 --> 01:15:18.840 a Shouvy Bolt because he wants to have an electric car around town. I 1115 01:15:18.880 --> 01:15:23.800 mean, nothing makes you interested in electric faster than driving an electric car. 1116 01:15:23.880 --> 01:15:27.399 It's fantastic. Yeah, I mean, it really is fantastic. So it's 1117 01:15:27.439 --> 01:15:30.079 interesting that this guy is one. It should be. But anyway, I 1118 01:15:30.119 --> 01:15:33.279 think the used car space is going to be a little bit tough for EV's 1119 01:15:33.439 --> 01:15:36.319 and I think you've talked about that a little bit before because of the you 1120 01:15:36.399 --> 01:15:41.119 know, the technology becoming up obsolete. Todd and I were watching a video 1121 01:15:41.159 --> 01:15:45.319 earlier today actually about all these junk yards and cities in China that are stockpiling 1122 01:15:45.399 --> 01:15:50.199 up with these used, obsolete electric vehicles because you know there's a better one 1123 01:15:50.199 --> 01:15:53.279 out there. I don't know what to do with this. Well, they're 1124 01:15:53.319 --> 01:15:58.159 just gonna end up building up. And I think that's why fifty percent of 1125 01:15:58.239 --> 01:16:03.520 evs are least right, least the person purchase and then the purchase in the 1126 01:16:03.600 --> 01:16:09.119 gasoline powered cars only seventeen percent or least, but of electric cars it is 1127 01:16:09.159 --> 01:16:12.800 fifty percent. And I think that's brilliant because because things are changing. I 1128 01:16:12.880 --> 01:16:15.880 think that's a good point of like the statistical gymnastics you could play, because 1129 01:16:15.880 --> 01:16:18.720 we were we had that observation a couple of weeks ago, Dave, and 1130 01:16:18.760 --> 01:16:21.359 we're like, why can't we figure this out? And then it was it 1131 01:16:21.399 --> 01:16:27.560 was literally because most of the used car sales account for vehicle sales. Yeah, 1132 01:16:27.680 --> 01:16:30.479 came up with that, right. Oh, well that's why, I 1133 01:16:30.520 --> 01:16:33.039 mean, how many people actually buy a new car? Very little a group 1134 01:16:33.079 --> 01:16:38.159 of population as a whole. Right, So the elderly guy that just came 1135 01:16:38.159 --> 01:16:41.760 back for vacation looking for the Shivvy bolt is looking for a used Chivvy volt, 1136 01:16:41.880 --> 01:16:44.760 right, and most people that's what they do when they're buying a new 1137 01:16:44.800 --> 01:16:46.520 car. They don't want the eight percent hit when they drive off the lot 1138 01:16:46.600 --> 01:16:50.680 or whatever it is. And so I when you look at statistics in this 1139 01:16:50.760 --> 01:16:54.479 EV space, there's so many ways you could look at it. You could 1140 01:16:54.520 --> 01:16:58.159 skew them any way you want. At this point, I've seen a lot 1141 01:16:58.199 --> 01:17:02.119 of statistical gymnastics. Pressures are coming down though, that's for sure, and 1142 01:17:02.479 --> 01:17:06.279 I think that's a good thing. Well, lithium had a terrible year because 1143 01:17:06.319 --> 01:17:10.640 there's an oversupply of it, and a lot of it has to do with 1144 01:17:11.760 --> 01:17:15.760 the EV industry not using as much lithium as analysts thought they could or needed, 1145 01:17:16.119 --> 01:17:18.720 and so lithium has had a terrible year, but you know it has 1146 01:17:18.760 --> 01:17:23.319 had a great year. It is uranium. Uranium has had a great year 1147 01:17:23.319 --> 01:17:28.520 because a little bit of other countries, not really US has started some version 1148 01:17:28.520 --> 01:17:31.159 of a nuclear Task Force, which I'm happy about. Hopefully that gained some 1149 01:17:31.239 --> 01:17:34.720 speed. But the other countries around the world, like China specifically, has 1150 01:17:34.920 --> 01:17:39.319 started a lot of nuclear plants in production over the next ten years. They're 1151 01:17:39.319 --> 01:17:42.800 going to need a lot of uranium to do that. Uranium the ETF I 1152 01:17:42.920 --> 01:17:45.000 follow you you follow a different one. Mine was up fifty percent. Do 1153 01:17:45.039 --> 01:17:48.800 you know how much your similar exactly? So uranium had a great year for 1154 01:17:48.840 --> 01:17:55.039 a commodity space where commodities didn't do really anything special in twenty three. So 1155 01:17:55.079 --> 01:18:00.520 for uranium to outperform like that, there's definitely some supply demand dynamics in that 1156 01:18:00.600 --> 01:18:04.000 space. Visit to the EV garage. I thought we were Okay, yeah, 1157 01:18:04.039 --> 01:18:05.680 we're back in it. I thought we were in it. No, 1158 01:18:05.720 --> 01:18:09.680 we're not an EV garage. And let us tell I say, EV garage, 1159 01:18:09.720 --> 01:18:12.640 what just happened? Wow, you were talking, we were, we 1160 01:18:12.680 --> 01:18:16.000 were in an EV drive. We were talking about what we were talking about, 1161 01:18:16.079 --> 01:18:19.199 Chinese electric vehicle. We were not in the EV garage. Okay, 1162 01:18:19.199 --> 01:18:21.560 we were. You actually have to pull into the garage. Yeah, you 1163 01:18:21.600 --> 01:18:28.319 can't just be driving around her in the evzy. Now we need to drive 1164 01:18:28.399 --> 01:18:30.920 into the We're going to actually be in the EV garage, which is the 1165 01:18:31.079 --> 01:18:36.159 education, our educational segment that like that. It's about forty percent of people 1166 01:18:36.159 --> 01:18:42.239 who buy an electric vehicle. Actually it's closer to fifty lease that vehicle rebates 1167 01:18:42.359 --> 01:18:46.039 have played an important part in generating interest, but not necessarily for those least 1168 01:18:46.039 --> 01:18:51.159 people because the car company gets those rebates, that's all gonna change next week. 1169 01:18:51.239 --> 01:18:57.159 Seashion all gonna change next week. And what's short for Sebastian sea bass? 1170 01:18:57.479 --> 01:18:59.680 That cute? I heard. My wife thinks that's so cute for the 1171 01:18:59.800 --> 01:19:01.680 whole life ever since tea bowl, so sea basket. We're gonna be changed. 1172 01:19:01.680 --> 01:19:05.359 We're gonna be changing next week because that seventy five hundred dollars new tax 1173 01:19:05.479 --> 01:19:12.560 credit becomes an immediate seventy five hundred dollars payment. So instead of having to 1174 01:19:12.600 --> 01:19:15.199 wait until you file your taxes to get your seventy five hundred bucks, you're 1175 01:19:15.239 --> 01:19:19.399 gonna get it on the spot. I wonder if solar will have a similar 1176 01:19:19.600 --> 01:19:21.600 Well there you go, Well that would it'd be helpful, wuldn't it right? 1177 01:19:21.640 --> 01:19:26.520 Right? But on the spot. So if you're whatever your deal is 1178 01:19:26.520 --> 01:19:29.960 for the car, UH, take seventy five hundred bucks off of that right 1179 01:19:30.039 --> 01:19:32.359 at the dealership before you write the check for the car. Uh. You 1180 01:19:32.359 --> 01:19:35.960 don't have to wait for anything to come back. The biggest problem with the 1181 01:19:36.239 --> 01:19:41.840 with getting that seventy five hundred dollars rebate, however, is there's only ten 1182 01:19:41.920 --> 01:19:47.239 vehicles eligible for the full seventy five hundred and it's based upon income, it's 1183 01:19:47.239 --> 01:19:51.680 based upon parts, it's based upon you know, where it's manufactured. There's 1184 01:19:51.720 --> 01:19:56.439 a lot of nuances. So here are the ten ready for this? All 1185 01:19:56.479 --> 01:19:59.920 three Tesla models are eligible, you know the why, the s and the 1186 01:20:00.319 --> 01:20:04.920 those are all eligible. The Chrysler I'm sorry, the Ford F one fifty 1187 01:20:05.000 --> 01:20:11.960 Lightning Pickup, the Cadillac Lyric, Chrysler Pacifica, and then four GM models, 1188 01:20:11.960 --> 01:20:15.439 which I thought was impressive. GM has four cars that qualify for the 1189 01:20:15.439 --> 01:20:19.319 full Equinox, Delverado, Blazer, and the Bolt. Other cars do qualify 1190 01:20:19.359 --> 01:20:24.000 for a partial rebate, you know, so they're to get the full seventy 1191 01:20:24.000 --> 01:20:26.760 five hundred, it's got to be one of those ten vehicles. Yes, 1192 01:20:26.840 --> 01:20:29.479 So, like who would want to buy any V on the basis of I 1193 01:20:29.600 --> 01:20:32.239 might skit seventy five hundred dollars, you know that's subsidy. Isn't really Like 1194 01:20:32.680 --> 01:20:34.760 I don't think it's going to drive me to go get that? Well, 1195 01:20:34.760 --> 01:20:39.479 you'll know, you'll know at the dealership. In other words, you walk 1196 01:20:39.520 --> 01:20:43.000 in and you say here's who I am, and here's they'll they'll ask the 1197 01:20:43.039 --> 01:20:45.760 income questions because it is income based too, which people can't get it. 1198 01:20:46.520 --> 01:20:50.520 Yeah, And so what are the predominant buyers of vvs right now? Yeah, 1199 01:20:50.960 --> 01:20:55.239 people that people that may not qualify for the seventy five hundred dollars rebate, 1200 01:20:55.319 --> 01:20:59.960 which may be why so many people are leasing it because they don't quali 1201 01:21:00.119 --> 01:21:06.079 fire it anyway because of income. Right right, thanks Biden. Exactly have 1202 01:21:06.159 --> 01:21:09.840 we done with the ev garage? We're finally in the house. We're in 1203 01:21:09.880 --> 01:21:12.079 the house, all right, We're in the house. Uh. New York 1204 01:21:12.119 --> 01:21:16.399 Times has sued Microsoft and open AI for using its content to help develop chat 1205 01:21:16.439 --> 01:21:23.840 GBT. It's kind of an interesting story because technically New York Times might have 1206 01:21:23.880 --> 01:21:28.800 a case because it does sound like Microsoft and open I use these copyrighted articles 1207 01:21:28.960 --> 01:21:32.760 to train the chat GBT to help do what it does now. But on 1208 01:21:32.800 --> 01:21:38.319 the other token, that's freedom. That's a free information. Well it's technically 1209 01:21:38.399 --> 01:21:42.159 not free information, but it kind of is. That's gonna be an interesting 1210 01:21:42.239 --> 01:21:45.319 lawsuit right there. I think it's a really interesting one. I don't know 1211 01:21:45.359 --> 01:21:47.560 which way the judge will sway of that one. That that is an interesting 1212 01:21:47.600 --> 01:21:54.920 that is an interesting lawsuit. And uh, it's it's just a reminder when 1213 01:21:54.920 --> 01:21:59.560 I see when I see that and I see Google getting sued by somebody, 1214 01:21:59.640 --> 01:22:02.439 micros Off getting sued by somebody, and it's just we live in that country, 1215 01:22:02.479 --> 01:22:06.880 don't we. We live in that country where we have seventy percent of 1216 01:22:06.960 --> 01:22:11.960 all of the lawyers in the world live in this country. Think about how 1217 01:22:12.039 --> 01:22:15.159 much money those lawyers of intellectual property make, you know, Like, who's 1218 01:22:15.199 --> 01:22:19.520 there? Who's their client? It's Google, It's Microsoft, that's yeah, 1219 01:22:19.720 --> 01:22:24.800 you got you do you think who do you think win's this lawsuit? I 1220 01:22:24.800 --> 01:22:27.800 think it'll set a lot of court. Obviously Microsoft will pay you know, 1221 01:22:27.880 --> 01:22:30.640 some small amount, like a billion dollars, some small amount. Yeah, 1222 01:22:30.720 --> 01:22:33.239 for these companies. I mean, these numbers are just off the charts. 1223 01:22:33.239 --> 01:22:39.560 But you know, Apple, Apple could not was just could could not sell 1224 01:22:39.600 --> 01:22:44.640 their Series nine and Ultra to Apple watches in the US to do a patent 1225 01:22:44.680 --> 01:22:50.479 infringement lawsuit that they recently lost. Apple appealed, appealed the decision, and 1226 01:22:50.560 --> 01:22:54.000 an appeals court said, and you know, go ahead and keep selling them 1227 01:22:54.560 --> 01:22:58.920 while we while we talk about this. A Massimo, who accused Apple of 1228 01:22:58.920 --> 01:23:04.800 stealing its pultry symmetry technology, won the lawsuit, but the court said, 1229 01:23:04.840 --> 01:23:08.039 no, I just go ahead, you keep you keep showing them while we 1230 01:23:08.079 --> 01:23:11.319 talk about it, and you know, Microsoft with the New York Times, 1231 01:23:11.359 --> 01:23:14.640 it just it's just one after another. I mean, just probably own some 1232 01:23:14.680 --> 01:23:16.279 apple stuck there. We live in it. We live in a country where 1233 01:23:16.279 --> 01:23:20.159 you can sue anybody over anything at any time. And well, let's let's 1234 01:23:20.239 --> 01:23:25.319 not forget the FTC, who has the absolute worst track record when they try 1235 01:23:25.359 --> 01:23:29.239 to sue someone, especially in the Biden administration. Have they won one lawsuit? 1236 01:23:29.359 --> 01:23:32.359 They have struggled? I don't think they have. They just like to 1237 01:23:32.520 --> 01:23:36.720 talk about how big business is bad and then can't prove what they said was 1238 01:23:36.760 --> 01:23:40.199 bad. Yeah, big business is bad. We know that. I mean 1239 01:23:40.239 --> 01:23:42.800 that's that's if you listen to the left, that big business, big, 1240 01:23:42.840 --> 01:23:45.319 big business is bad. But then what is big business? Right? Well, 1241 01:23:45.399 --> 01:23:48.680 well it sounds like it would be a Pelosi trade when she hasn't sent 1242 01:23:48.760 --> 01:23:54.800 information. Your mounds like mushin getting a kickback when you when you you it 1243 01:23:54.840 --> 01:23:57.880 sounds that's the way you want to So let's be let's be honest what big 1244 01:23:57.920 --> 01:24:00.760 business is. If you're making more than them on wage, you're obviously cheating, 1245 01:24:02.079 --> 01:24:05.520 right right, And I think that's that's I think that goes back to 1246 01:24:05.760 --> 01:24:11.199 to UH President Obama, who came from the streets right. He was an 1247 01:24:11.319 --> 01:24:15.399 organizer, and I think as an organizer, you see big business as the 1248 01:24:15.640 --> 01:24:20.920 as your foal. And I think that was the mindset going in that the 1249 01:24:20.960 --> 01:24:25.840 big business is to be dealt with. I think more than anything, it's 1250 01:24:25.840 --> 01:24:29.680 a victim mentality that is spread out through our society and probably the world. 1251 01:24:29.880 --> 01:24:32.159 People don't like to take responsibility for why they are where they are. It's 1252 01:24:32.159 --> 01:24:35.560 easier to blame someone else. We're coming up on a break. We thank 1253 01:24:35.600 --> 01:24:40.239 you for everyone who's listening to our radio show. We have one more segment, 1254 01:24:40.239 --> 01:24:42.680 happy to bring it to you, and yes I'm talking about bitcoin. 1255 01:24:42.760 --> 01:24:48.479 Next segment. We'll be right back as the Money Matter Show. Welcome back 1256 01:24:48.520 --> 01:24:50.760 to the Money Matter Show. My name is Sebastian barg Si. I'm here 1257 01:24:50.760 --> 01:24:57.439 with Todd Blick and Stave Surewood. All right, editions, and this is 1258 01:24:57.479 --> 01:25:00.840 my time to talk about some bitcoin pop. The Champagne Let's go. It 1259 01:25:00.920 --> 01:25:03.199 was a champagne pop in years it was for bitcoin, wasn't It was up 1260 01:25:03.439 --> 01:25:06.560 one hundred and fifty four percent on the year. Not as much as in 1261 01:25:06.600 --> 01:25:13.159 a video a video beat them something something, But I but you weren't number 1262 01:25:13.159 --> 01:25:16.359 one. You weren't number one. Sorry no, Yeah, So finally a 1263 01:25:16.399 --> 01:25:23.079 bitcoin if it actually kind of replaced all the loss it had in twenty twenty 1264 01:25:23.119 --> 01:25:26.439 two, it's about where it was now, trades around forty two thousand per 1265 01:25:26.479 --> 01:25:30.760 bitcoin. The spot bitcoin ETF rumors is really what propelled this recent rally. 1266 01:25:31.319 --> 01:25:34.479 January tenth, this is the date to keep on your calendar. That is 1267 01:25:34.520 --> 01:25:39.960 said to be the deadline for the SEC to either approve or deny the first 1268 01:25:40.039 --> 01:25:44.600 ever spot bitcoin ETF. We talked about this on the show before. Technically 1269 01:25:44.720 --> 01:25:48.319 ETFs are not allowed to buy the underlying commodity until the ETF's approved. Therefore, 1270 01:25:48.359 --> 01:25:53.680 all this money that has been increasing into bitcoin hasn't actually been institutions. 1271 01:25:53.720 --> 01:25:56.119 Now, it could be other institutions front running the institutions that have to buy 1272 01:25:56.159 --> 01:26:00.560 the bitcoin for the ETF, But when that ETF gets approved, if it 1273 01:26:00.560 --> 01:26:03.920 gets approved, there has to be buying. That's what retailers are. Retail 1274 01:26:03.920 --> 01:26:08.399 traders are kind of front rating, frontrunning institutions for one of the first times 1275 01:26:08.520 --> 01:26:12.439 in financial markets because it just normally doesn't happen that way. Normally it's an 1276 01:26:12.479 --> 01:26:15.399 IPO, right, and so you can't get in before the institutions. This 1277 01:26:15.439 --> 01:26:18.439 is one of the first times where retailers can kind of front run what possibly 1278 01:26:18.520 --> 01:26:21.840 might be the first ever it's about bitcoin ETF And on top of that, 1279 01:26:23.199 --> 01:26:27.359 you have the twenty twenty four happening. The twenty twenty four happening coincides with 1280 01:26:27.439 --> 01:26:32.119 bitcoin miners receiving a half of the reward they're currently receiving when this happens. 1281 01:26:32.119 --> 01:26:35.960 And this is how bitcoin work works. It happens every four years, and 1282 01:26:36.000 --> 01:26:41.920 it has a built in monetary policy, and it's a deflationary one, meaning 1283 01:26:41.960 --> 01:26:45.960 every time there's less and less bitcoins being added to the circulation of bitcoin. 1284 01:26:46.359 --> 01:26:51.079 Eventually the happening and the increase of bitcoin completely stops in a year around twenty 1285 01:26:51.119 --> 01:26:56.920 one thirty when all twenty one million have been distributed. And so that's really 1286 01:26:56.960 --> 01:27:00.319 how it works. Talking about bitcoin minors, Mara Marathon, Yeah, I 1287 01:27:00.319 --> 01:27:04.279 mean that thing has been ripping faces like crazy. It has been. It 1288 01:27:04.319 --> 01:27:10.880 has outpaced bitcoin almost three four times the gain on the year. It had 1289 01:27:10.880 --> 01:27:13.840 a really bad two days. It was down eleven percent on Thursday, it 1290 01:27:13.840 --> 01:27:16.680 was down sixteen percent on Friday, and it was still at the same value 1291 01:27:16.720 --> 01:27:20.079 on Friday that it was five days previous. If the spot ETF is not 1292 01:27:20.199 --> 01:27:23.760 approved, what does this mean for bitcoin? And what does it mean for 1293 01:27:23.800 --> 01:27:27.560 these bitcoin minors that have been just you know, going on a rampage lately. 1294 01:27:27.640 --> 01:27:30.319 I don't think it means anything for bitcoin miners other than the fact that 1295 01:27:30.359 --> 01:27:34.319 they seem to be completely overvalued and there could be a lot of short You 1296 01:27:34.319 --> 01:27:38.119 think we're seeing a little bit of foe mode, like everybody's just throwing money 1297 01:27:38.119 --> 01:27:42.279 into it before this, Well no, because again, institutions cannot invest in 1298 01:27:42.319 --> 01:27:46.359 bitcoin until there's approved ETF for it. They can't buy a future's bitcoin product. 1299 01:27:46.479 --> 01:27:51.359 So if an institution wanted to allocate money to bitcoin one two three percent, 1300 01:27:51.359 --> 01:27:55.359 and when you talk about institutions, you're talking about billions of dollars even 1301 01:27:55.359 --> 01:27:58.439 at one two three percent, they can't do that right now because it's not 1302 01:27:58.520 --> 01:28:02.079 in their legal body to be able to buy something that doesn't have an approved 1303 01:28:02.399 --> 01:28:06.079 spot ETF. It's like trying to and we talked about this day they took 1304 01:28:06.079 --> 01:28:10.640 away the oil ETF. If you were an institution, I want to invest 1305 01:28:10.640 --> 01:28:15.199 in oil, some institutions say you can't use futures ETFs, so you can't 1306 01:28:15.239 --> 01:28:17.399 invest in oil other than maybe owning an oil stock, so you have to 1307 01:28:17.399 --> 01:28:21.960 find exposure in different ways. So this could be the first time when institutions 1308 01:28:21.960 --> 01:28:26.640 can finally allocate to the space. Now, all the other cryptos there are 1309 01:28:26.720 --> 01:28:31.560 long ways away from ever getting this treatment because the SEC actually sees bitcoin as 1310 01:28:31.560 --> 01:28:35.439 more of the commodity than a security, and that's why they're first up to 1311 01:28:35.520 --> 01:28:41.279 bat on this ETF And that's what's really the c I mean again, every 1312 01:28:41.279 --> 01:28:45.359 time you've seen a happening event, you've seen an increase happen afterwards. Now, 1313 01:28:45.479 --> 01:28:47.039 things don't always happen. Bitcoin's very young. It started in two thousand 1314 01:28:47.079 --> 01:28:50.079 and nine, right, so there's a long time for to see how it 1315 01:28:50.119 --> 01:28:55.960 continues to do. But it has had these huge peaks around the happening and 1316 01:28:56.000 --> 01:28:59.840 then huge drops about a year and a half after. Is that happening did 1317 01:29:00.600 --> 01:29:04.600 built in so that it doesn't get anti inflationary? Correct, It's a built 1318 01:29:04.600 --> 01:29:09.359 in deflationary and it's built into the bitcoin code and it cannot be changed by 1319 01:29:09.359 --> 01:29:14.880 anyone. Technically, if more than fifty one percent of all the bitcoin minors 1320 01:29:14.920 --> 01:29:18.119 agreed, they could change the protocol. And so when people are like who 1321 01:29:18.159 --> 01:29:21.760 runs bitcoin. It's the people, it's the people who use bitcoin. You 1322 01:29:21.840 --> 01:29:26.760 all vote, and how much bitcoin minor computing power of the total pie is 1323 01:29:26.840 --> 01:29:31.159 kind of your vote. I think probably the biggest takeaway from this radio show 1324 01:29:31.239 --> 01:29:36.439 this week is that it's human nature to want to be more aggressive when the 1325 01:29:36.439 --> 01:29:41.640 market has a nine week winning streak. It's human nature to want to be 1326 01:29:41.680 --> 01:29:45.760 more conservative when it has a nine week losing streak. Don't do either of 1327 01:29:45.800 --> 01:29:49.319 those. This is not a time to change your asset allocation to become more 1328 01:29:49.319 --> 01:29:53.399 aggressive, period, It's not. And if anything, this is the time 1329 01:29:53.439 --> 01:29:55.920 to revisit the risk tolerance. So we talk to people all the time. 1330 01:29:55.960 --> 01:29:59.359 We use this really interesting software called risk Allies, where we can, if 1331 01:29:59.399 --> 01:30:01.680 you want completely free each charge, send us your account statements. We can 1332 01:30:01.960 --> 01:30:05.880 put it into each holding. Into our software is the risk alives and it 1333 01:30:06.479 --> 01:30:11.279 describes a value, a risk value from one to one hundred for each stock 1334 01:30:11.640 --> 01:30:15.800 and then averages out the complete portfolio based on the waiting of each stock in 1335 01:30:15.840 --> 01:30:19.640 the portfolio and gives you an all in all risk score for each portfolio. 1336 01:30:20.000 --> 01:30:24.760 And then you can compare that to a risk tolerance questionnaire you take that gives 1337 01:30:24.760 --> 01:30:27.760 you a one to one hundred score and see how they align. If they 1338 01:30:27.800 --> 01:30:30.720 are where they are and they're equally then perfect. If they're not, maybe 1339 01:30:30.760 --> 01:30:34.479 it is time to take profits or be more aggressive, depending on what the 1340 01:30:34.520 --> 01:30:38.600 results are. And so, if anything, this is a good time to 1341 01:30:38.600 --> 01:30:42.880 revisit those risk tolerances, revisit the financial plan, and we're here to help 1342 01:30:42.920 --> 01:30:45.680 with all of that. It is, and I think that it's very natural 1343 01:30:45.960 --> 01:30:51.600 in times like this when you do take a risk questionnaire, to be more 1344 01:30:51.720 --> 01:30:57.439 accepting of risk than you might normally be. So it is you'd have to. 1345 01:30:57.560 --> 01:31:00.439 Well when we look at a client who comes in and let's say one 1346 01:31:00.520 --> 01:31:04.880 hundred percent invested is a number of one hundred, right, And a client 1347 01:31:04.920 --> 01:31:10.000 comes in and goes, well, I think i'm a seventy, that's really 1348 01:31:10.000 --> 01:31:15.920 a sixty because you're you're you're just your human nature is making you be more 1349 01:31:16.039 --> 01:31:20.359 comfortable right now. Because the market's gone up for nine consecutive weeks, it's 1350 01:31:20.399 --> 01:31:25.119 going to keep going up, you know for nine more consecutive weeks. We 1351 01:31:25.239 --> 01:31:29.359 know that's not going to happen, but you the comfort level right now is 1352 01:31:29.439 --> 01:31:35.520 very high. The the risk index, the VIX is as low as it's 1353 01:31:35.520 --> 01:31:43.000 spend in years, So that's a that's a good measure of where the market's 1354 01:31:43.039 --> 01:31:45.920 going to go. There, we're due for a pullback, We're due for 1355 01:31:45.920 --> 01:31:48.800 a pullback, but we don't we don't expect a major pullback, but we 1356 01:31:48.840 --> 01:31:55.319 do expect to pull back. We were saying in February, March, April 1357 01:31:55.439 --> 01:32:00.399 of this year when clients were so concerned about the drop been twenty twenty two 1358 01:32:01.000 --> 01:32:05.640 and the twenty some percent loss, and at that time, the regional bank 1359 01:32:05.640 --> 01:32:11.840 failure, the regional bank failure, we were saying every week, the one 1360 01:32:12.000 --> 01:32:17.079 thing that every market decline in history has in common is every market decline in 1361 01:32:17.199 --> 01:32:21.880 history has been followed by a new all time high. And what did we 1362 01:32:23.000 --> 01:32:27.439 just hit a new all time high? Almost it happened, but the SDP 1363 01:32:27.680 --> 01:32:30.439 was like three points away. The doubt did hit an all time high. 1364 01:32:30.520 --> 01:32:34.119 Now that get hit an all time high. So it's cool. But and 1365 01:32:34.239 --> 01:32:39.279 we were saying people, the market has only been down two years in a 1366 01:32:39.399 --> 01:32:44.039 row, four times in the last eighty years, four times in the last 1367 01:32:44.079 --> 01:32:47.199 day, so the odds of it being down in twenty twenty three are pretty 1368 01:32:47.239 --> 01:32:50.720 small. Well, guess what, how did that work? Out. Yeah, 1369 01:32:51.039 --> 01:32:55.680 when you look at March. I mean if you take yourself back to 1370 01:32:55.760 --> 01:32:59.159 March and you think, oh, twenty twenty two is so bad. We've 1371 01:32:59.199 --> 01:33:01.039 had some gains so far in twenty three, but now we have this regional 1372 01:33:01.119 --> 01:33:04.319 bank failure. I better sell and lock in some of these gains right now 1373 01:33:04.359 --> 01:33:08.720 before this thing really turns bad. Like we knew it, we was already 1374 01:33:08.720 --> 01:33:12.399 doing in twenty twenty two. And then guess what happened coming off the tech 1375 01:33:12.479 --> 01:33:15.039 wrec right into the regional banking crisis and it's like, oh, my goodness, 1376 01:33:15.039 --> 01:33:18.800 why would anyone do this with their money? And that's the same people 1377 01:33:18.840 --> 01:33:21.560 now are saying, well, why am I not all in? You know, 1378 01:33:23.760 --> 01:33:28.680 you've got to find that level. The most important thing is finding that 1379 01:33:28.880 --> 01:33:33.720 asset allocation that will allow you to ride through times when the market is down. 1380 01:33:34.000 --> 01:33:38.680 Going. The last nine weeks have been easy. Easy. I mean 1381 01:33:38.960 --> 01:33:43.399 it goes up every single week, as simple as it gets. What we 1382 01:33:43.520 --> 01:33:47.720 try to do is find that asset allocation where you can stay invested when it 1383 01:33:47.760 --> 01:33:51.880 goes down for three, four or five six weeks in a row and it 1384 01:33:51.960 --> 01:33:57.800 doesn't freak you out. I have young clients. It's not about age. 1385 01:33:57.920 --> 01:34:00.840 I have young clients I've said this on the show, who are very conservative 1386 01:34:00.920 --> 01:34:06.159 and prefer CDs and treasuries. And I have a ninety seven year old John 1387 01:34:06.840 --> 01:34:11.079 who doesn't have any airs, He has a million bucks, he has no 1388 01:34:11.159 --> 01:34:15.960 heirrors, and he keeps pushing me to be more aggressive. Obviously, from 1389 01:34:15.000 --> 01:34:19.880 a fiduciary point of view, I can't do that, and he understands that. 1390 01:34:20.840 --> 01:34:25.359 So it's not about age. It's about what your tolerance is for risk. 1391 01:34:25.840 --> 01:34:30.199 What's the maximum amount of equity exposure you can tolerate. That's what we 1392 01:34:30.279 --> 01:34:33.800 try to find. You know. I think that one of the best business 1393 01:34:33.800 --> 01:34:39.800 moves of twenty twenty three was GE spinning off their sectors of their business, 1394 01:34:40.279 --> 01:34:45.560 and GE Stock was a beneficiary of it. GE Healthcare was a good spin 1395 01:34:45.600 --> 01:34:49.760 off there. GE probably had one of the best corporate business moves in hindsight, 1396 01:34:50.359 --> 01:34:54.239 And then you were talking about it normally that never works, never, 1397 01:34:54.359 --> 01:34:59.039 but it works. Reverse has a good decision about that company. I'm we're 1398 01:34:59.119 --> 01:35:00.600 kind of coming up on it here. We want to talk a little bit. 1399 01:35:00.640 --> 01:35:03.439 I come up with the New Year's resolution, you don't do them, 1400 01:35:05.119 --> 01:35:11.760 help other people yours. It's kind of why I'm taking the Sedona trip. 1401 01:35:12.079 --> 01:35:15.560 Yeah, figure it out. Oh yeah, I got an engagement coming up. 1402 01:35:15.600 --> 01:35:16.199 I don't know. Oh no, no, no, no, no 1403 01:35:16.199 --> 01:35:21.079 no, take it easier over there. Pull back the rains. But he 1404 01:35:21.159 --> 01:35:26.279 pulled back the rains, you know, my my most likely. I mean, 1405 01:35:26.279 --> 01:35:30.079 this is always something that's a big issue of mine. It's the practice 1406 01:35:30.520 --> 01:35:35.000 what's called empathetic listening. You know, not not to be not to listen 1407 01:35:35.000 --> 01:35:40.319 with the intent to respond, but be intent to understand. You know, 1408 01:35:40.479 --> 01:35:44.000 I'm a very quick person and it's in my industry. People expect me to 1409 01:35:44.039 --> 01:35:46.600 know the answers, so you always have an answer ready. In life, 1410 01:35:46.600 --> 01:35:50.199 that's not always how you should communicate with people. So that's my news resolution 1411 01:35:50.359 --> 01:35:54.960 listen more than I talked this year, which shouldn't be hard to do. 1412 01:35:55.359 --> 01:35:58.399 Like Judge Judy says, that's why you've got two ears in one mouth. 1413 01:35:59.000 --> 01:36:03.840 Yeah right, that's going to be listening anyway. We appreciate uh you listening. 1414 01:36:04.079 --> 01:36:08.760 We appreciate the business in the last twenty of the business we've had in 1415 01:36:08.800 --> 01:36:13.239 twenty twenty three been an outstanding year for our clients. It's been an outstanding 1416 01:36:13.319 --> 01:36:16.680 year for Greenberg Financial. We look forward to coming back in the new year 1417 01:36:17.079 --> 01:36:20.039 and bringing you a new radio show with just the Three Musketeers. Though the 1418 01:36:20.079 --> 01:36:23.239 first one out of the shoot this year was the Year of the Jordan, 1419 01:36:23.319 --> 01:36:26.760 this next year's year of Kobe Well, want to be Happy, and of 1420 01:36:26.800 --> 01:36:30.000 course healthy is way up there on the list. But at the end of 1421 01:36:30.039 --> 01:36:32.399 the day, what we're really trying to do here at Greenberg Financial is bro