S&P 500 Has Returned to a Bull Market - Here’s Why

100:00:02,040 --> 00:00:05,240Good morning, Welcome to the MoneyMatter Show. This is Dave Sherwood.200:00:05,240 --> 00:00:08,960I'm here with Todd Glick. DylanGreenberg is going to be joining this dean300:00:09,039 --> 00:00:13,039and out of town. We lookforward to having him back at some point,400:00:13,080 --> 00:00:17,120but it's probably not going to bethis month. Just FYI. You500:00:17,160 --> 00:00:20,199know at the middle of June andthe Sonoran Desert and you and I,600:00:20,280 --> 00:00:25,480Todd both spend a lot of timeoutside. Man, has it been nice700:00:25,519 --> 00:00:29,879by June standards? Are you kiddingme? We actually did have a record.800:00:30,120 --> 00:00:33,439I think I told you about this. I've lived here fifty years,900:00:33,439 --> 00:00:36,399and it's pretty rare to have anentire month of May with no one hundred1000:00:36,399 --> 00:00:40,240degree temperature. Just not unheard of, but it's pretty rare. That's exactly1100:00:40,280 --> 00:00:44,520what happened this year. In fact, here's the record thirty five days from1200:00:44,560 --> 00:00:48,520the first one hundred degree day,which was April thirtieth, to the second1300:00:48,600 --> 00:00:52,920one hundred degree day, which wasJune fourth, And that's the longest period1400:00:52,920 --> 00:00:56,640between the first and the second inhistory. I think that's probably a product1500:00:56,640 --> 00:00:59,000of the first one being a littletoo earlier this year. Yeah, it1600:00:59,039 --> 00:01:02,960was definitely early. I mean I'malmost at the earliest in history. So,1700:01:03,359 --> 00:01:08,760uh that that that's the caveat.Big headlines this week probably uh smoke1800:01:08,799 --> 00:01:14,239in New York City and the Trumpindictment. Those are kind of the two1900:01:14,319 --> 00:01:19,439headline making news items this week.Yeah, it was incredible to see those2000:01:19,439 --> 00:01:22,920pictures out of New York. Imean it looked like Gotham City, almost2100:01:22,959 --> 00:01:26,120like those movies. You know,it was incredible movie. It was really2200:01:26,159 --> 00:01:30,000weird to see it. How itdidn't remind you of that California pictures of2300:01:30,040 --> 00:01:33,719a couple of years ago. Yeah, it did, it did, And2400:01:33,799 --> 00:01:38,280it's of course I think one dayor two days, they had the worst2500:01:38,319 --> 00:01:42,799air quality in the world. Yeah, New York City or any major city.2600:01:42,840 --> 00:01:47,280I saw that caveat. So Idon't know if that means smaller cities2700:01:47,359 --> 00:01:49,920have way worse. I don't know. It's hard to say, but yeah,2800:01:51,000 --> 00:01:53,760I mean to be worse than Shanghai. You know, I'm thinking,2900:01:53,840 --> 00:01:57,359I'm thinking to have have bad airquality, you probably have to be a3000:01:57,359 --> 00:02:00,879major metropolitan area unless you have likea really bad local small town that has3100:02:00,920 --> 00:02:05,120run off from a really big plantsomewhere. Yeah, it messes up like3200:02:05,159 --> 00:02:07,039everything in the environment. I'm fromClark, South Dakota. We didn't have3300:02:07,280 --> 00:02:10,840bad air days there. There waseleven hundred people and everybody seemed to get3400:02:10,879 --> 00:02:15,240along fine. Yeah. I thinkboth small towns are fine. Yeah.3500:02:15,360 --> 00:02:21,680Talk about the Trump indictment that abouta month ago. I think some of3600:02:21,719 --> 00:02:23,479you know. I decided, likemany, like many Americans, frankly,3700:02:23,520 --> 00:02:28,159to give up on the news.I'd had enough because it really isn't the3800:02:28,199 --> 00:02:31,400news. We've talked about this nauseum. It's someone's opinion of the news.3900:02:31,520 --> 00:02:36,000And I don't care if it's Foxor CNN or who it is. It's4000:02:36,080 --> 00:02:40,240someone's opinion of the news. Imiss Walter Cronkite like mad right. We4100:02:40,280 --> 00:02:45,319need a half an hour of newsevery night at supper time, and that's4200:02:45,319 --> 00:02:49,080not really all we need. TedTurner had this idea about twenty four seven4300:02:49,120 --> 00:02:53,000news, and it's it's it madesense, I guess on paper. But4400:02:53,039 --> 00:02:57,199when you have twenty four seven newsand you only really have news for thirty4500:02:57,240 --> 00:03:00,560minutes a day, you end upwith an a lot of opinions. Any4600:03:00,560 --> 00:03:05,560I digress. For the past month, the only news I've gotten is from4700:03:05,599 --> 00:03:08,039the business networks. I typically workout todd as you do, and when4800:03:08,080 --> 00:03:12,000it gets but when it gets toohot, I go to the gym,4900:03:12,039 --> 00:03:14,439and I went to the gym lastweek. It hit one hundred for I5000:03:14,479 --> 00:03:17,639think, what the third time thisyear. Last week on Tuesday or Wednesday.5100:03:17,680 --> 00:03:22,719I remember the day, and CNNis on the TV in front of5200:03:22,719 --> 00:03:28,120the shreadmill, so I really can'tavoid it. And I was absolutely not5300:03:28,240 --> 00:03:31,719shocked to see that there's still onehundred percent Trump indictment one hundred percent of5400:03:31,759 --> 00:03:36,680the time. I mean, therereally isn't much news on CNN other than5500:03:36,840 --> 00:03:40,960Trump and Trump's indictment and what that'sgoing to mean. They're just dying for5600:03:42,080 --> 00:03:46,439payback there. They're dying to gethim convicted so he can't run. That's5700:03:46,479 --> 00:03:49,439not going to happen. We knowthe court system, how it moves,5800:03:49,680 --> 00:03:57,039how slowly it moves. The chancesof him being convicted of anything pretty close5900:03:57,080 --> 00:03:59,879to zero between now in the election, and frankly, I think that's his6000:04:00,120 --> 00:04:03,560strategy is now, if I justget elected president, then that's four more6100:04:03,639 --> 00:04:08,439years that they'll leave me alone.They have to leave me alone, and6200:04:08,439 --> 00:04:12,199by then I'm eighty two. Whocares? Maybe they don't even care anymore.6300:04:12,639 --> 00:04:15,040But you know, it's no wonderat watching the CNN and this odd6400:04:15,120 --> 00:04:21,040nauseum coverage. It's no wonder thattheir ratings are so low. I noticed6500:04:21,079 --> 00:04:28,800that recently, a couple of daysthey've actually had ratings below Newsmax. Now,6600:04:28,839 --> 00:04:30,720I don't even know how to pullup Newsmax. I don't know where6700:04:30,759 --> 00:04:34,040you would get Newsmax. I don'tknow if it's on my computer, on6800:04:34,120 --> 00:04:39,319my phone, on TV, Idon't. I have no idea. Yeah,6900:04:39,040 --> 00:04:42,079and like you said, the WalterCronkike era made it very easy for7000:04:42,120 --> 00:04:46,120people to all receive the same typeof flow, and world wasn't as divisive7100:04:46,240 --> 00:04:50,600during that. If you looked atAmerican politics half a century ago, you'll7200:04:50,639 --> 00:04:55,839see that there was a lot ofbipartisan actions. They would actually compromise and7300:04:55,879 --> 00:05:00,160come to the table and figure asolution out. And unfortunately, the one7400:05:00,439 --> 00:05:06,879side effect of technology has been theincreasingly easily it facilitates echo chambers. Right,7500:05:06,920 --> 00:05:11,639it facilitates the ability to find whatinformation you want. And really,7600:05:11,639 --> 00:05:14,319at the end of the day,it's doesn't you can find your own facts,7700:05:15,079 --> 00:05:16,560right, You don't have to findIt's not just that's a fact,7800:05:16,879 --> 00:05:19,959you can't dispute it. No,it's I can find my own fact based7900:05:19,959 --> 00:05:23,959on my own evidence. And that'swhere we're at in America, and that's8000:05:23,959 --> 00:05:28,079why we are so divisive. Andyou really see that you can argue the8100:05:28,120 --> 00:05:33,279same thing and have completely different waysof coming about the argument. It's how8200:05:33,279 --> 00:05:36,439we ever get past this? Idon't I don't know. I don't know8300:05:36,439 --> 00:05:40,879if technology is going to help usget it past it or continuously make it8400:05:40,879 --> 00:05:44,560worse. But it's definitely I feellike made it worse over the past half8500:05:44,560 --> 00:05:50,160century. Yeah, social media certainlyhas been has helped propel this divisiveness,8600:05:50,519 --> 00:05:56,040But I the root is cable news. That's the root. Twenty four seven8700:05:56,079 --> 00:06:01,360News is the root more so thanthe Internet. Yes, I'm talking the8800:06:01,439 --> 00:06:06,160route where it all starts, allright, It all starts with CNN and8900:06:06,199 --> 00:06:11,800with fire. You just said CNN'sviewership is nothing, So all the view9000:06:11,959 --> 00:06:14,399all the eyes are really on theInternet, not on CNN. Well,9100:06:14,600 --> 00:06:16,879it ends responding to the Internet inmy opinion. You know what's interesting about9200:06:16,920 --> 00:06:20,240this c and I'm thinking, howlong will it be before Warner Brothers just9300:06:20,600 --> 00:06:27,639turns it off? You know that. You know they had their worst CNN9400:06:27,720 --> 00:06:31,399had their worst year for profitability inseven years last year and they still made9500:06:31,759 --> 00:06:35,439a billion dollars, Yeah, abillion dollars, And we talked a lot9600:06:35,439 --> 00:06:40,639of their funding comes from big corporationsthat want them to spell out a certain9700:06:40,680 --> 00:06:44,439thing. Right. It's all advertisementmoney, and so they have a certain9800:06:44,519 --> 00:06:48,120narrative they want to get across.Let's talk about our disclaimer, which is9900:06:48,120 --> 00:06:51,439another fun thing to talk about.The show sponsored by Greenberg Finance Group.10000:06:51,439 --> 00:06:55,199You can listen on seven ninety Kand st or I Heart Radio. The10100:06:55,199 --> 00:07:00,399show discusses different investment products and strategies. Every product and strategy has type of10200:07:00,399 --> 00:07:03,519inherent risk. We strongly encourage ourlisteners to probably understand these risks because when10300:07:03,519 --> 00:07:06,720they're understood, one can probably decidewhether to buy, sell, or hold.10400:07:08,040 --> 00:07:10,480The show has been on the airfor for thirty years. Greenberg Financial10500:07:10,519 --> 00:07:15,560as a member of FINNR and SIPPICand is registered with the SEC. Quiet10600:07:15,600 --> 00:07:17,800Week and the markets did not havea lot of action moving up and down.10700:07:18,560 --> 00:07:23,120The Dow up point three, sANDP up point four, NASDAC only10800:07:23,199 --> 00:07:26,279up point one. And we shidlast week that we thought that this week10900:07:26,319 --> 00:07:28,759would be quiet. You you werekind of think it could be as much11000:07:28,759 --> 00:07:30,959as a one percent and pull backyou know, it's funny. Every time11100:07:31,000 --> 00:07:33,600they tried to pull back away,it went again. It was weird.11200:07:33,720 --> 00:07:39,240This morning I woke up and seeingthe futures and and we were responding to11300:07:39,360 --> 00:07:44,279Chinese inflation down to not being asstrong. So maybe the Fed doesne It's11400:07:44,279 --> 00:07:47,639like they they'll look, yeah,they'll they'll look for anything to help get11500:07:47,720 --> 00:07:53,040this thing back up. And weactually are technically in the bull market for11600:07:53,120 --> 00:07:56,240the SMP, and we are inthat environment. Every now and then the11700:07:56,720 --> 00:08:00,879market will get in an environment whereall news is good or all news is11800:08:00,920 --> 00:08:03,959bad. We're in that market whereall news is good right now. Yeah.11900:08:05,000 --> 00:08:09,800And it's it's hard to understand becausewe have an economy. Economic numbers12000:08:09,839 --> 00:08:15,879are consistently showing the economy is slowing. We've seen a number of corporate earnings12100:08:15,920 --> 00:08:24,839reports suggesting slowing guidance. It doesappear that the economy is slowly slowing down.12200:08:24,040 --> 00:08:30,680The IMF cut growth forecast for theUS and the world. And yet12300:08:30,720 --> 00:08:35,559here's the SMP five hundred Friday,within three points of the fifty two week12400:08:35,600 --> 00:08:39,080high, right, and it istechnically in a bull market, which is12500:08:39,120 --> 00:08:43,279defined as coming off its lows bytwenty percent. Yeah, twenty percent moved12600:08:43,720 --> 00:08:46,240up, it becomes a bull market. Twenty percent moved down, it becomes12700:08:46,240 --> 00:08:50,840a bear market. I think itwas back in twenty twenty we had a12800:08:50,240 --> 00:08:54,440bull market to a bear market toa bull market, all within about forty12900:08:54,440 --> 00:08:58,120five days. So you know,it is what it, call it what13000:08:58,240 --> 00:09:01,480you like. I think the bigstory, and we've talked about as a13100:09:01,600 --> 00:09:05,960nausium, is that the SMP yearto date returns twelve percent, the equal13200:09:05,960 --> 00:09:11,320weighted SMP two point eight percent.The reason that is is you have those13300:09:11,360 --> 00:09:15,639big six seven companies that are reallyjust taking off. Their others are not13400:09:15,879 --> 00:09:20,200going as much, right, andwhen you're looking at a twenty percent off13500:09:20,200 --> 00:09:24,320the low and all going into thenew bull market, that's normally because the13600:09:24,440 --> 00:09:28,159entire economy is coming out right,not seven big companies. And a lot13700:09:28,159 --> 00:09:33,200of those seven big companies are relatedto what the AI rally, the AI13800:09:33,039 --> 00:09:37,120boom that we're experienced this first partof twenty twenty three because of Chat,13900:09:37,120 --> 00:09:41,600GBT, Navidio. We saw howthat responded, and that's really just continuously14000:09:41,679 --> 00:09:46,480putting more momentum behind these indexes.Cramer calls them the Magnificent seven, and14100:09:46,559 --> 00:09:50,919they really have driven the market.The nasjac's up almost twenty seven percent for14200:09:50,960 --> 00:09:54,960the year, and the equal weightedSMP five hundred is up less than three.14300:09:56,720 --> 00:10:00,200That tells you that the Procter andGambles, they're Johnson and john since14400:10:00,240 --> 00:10:05,440the Merks, the Verizons, they'rejust not participating. We saw a week14500:10:05,480 --> 00:10:11,320ago Friday that seven hundred point rally. That was because those guys all participated.14600:10:11,559 --> 00:10:16,440They actually outperformed the NASDAC that day. And that's what you need to14700:10:16,440 --> 00:10:20,759see a sustainable move higher is youneed to see broader participation, and we're14800:10:20,759 --> 00:10:26,080not seeing that right now. No. And you know, a bull can14900:10:26,120 --> 00:10:28,440make its case that there's still alot of money market funds on the sideline15000:10:28,480 --> 00:10:35,159that could get poured into this marketmake it go a little higher, but15100:10:35,320 --> 00:10:37,360at the end of the day,there just seems something frothy about this that15200:10:37,440 --> 00:10:41,519it just keeps getting higher and higherand there's really no reason for it.15300:10:41,720 --> 00:10:46,679There's a symbol v i X,the VIX. It's it's the fear indicator.15400:10:46,720 --> 00:10:50,159You can't trade it, but itis all. You can buy calls,15500:10:50,200 --> 00:10:52,919and you can buy calls and putson the VIX, but and they15600:10:52,960 --> 00:10:56,879don't mimic it that, well,I've played that game a little bit.15700:10:56,919 --> 00:10:58,960Options game. Yeah, you know, the options on the VIX and Partake15800:11:00,080 --> 00:11:03,679Killer can be a little bit crazy, and so I've not played that.15900:11:03,720 --> 00:11:05,919I don't know. I shouldn't saythat I've played that game. Got my16000:11:05,960 --> 00:11:09,320hat handed to me and said,okay, that's enough of that. You16100:11:09,320 --> 00:11:13,159know, I'm a slow learner,but not that slow anyway. The VIX,16200:11:13,240 --> 00:11:18,679which is the fear indicator, isthe lowest sense February of twenty twenty.16300:11:18,720 --> 00:11:24,080And you might say that's good tome, that's an alarm belt because16400:11:24,080 --> 00:11:28,240that's saying that there's not a lotof buyers right now or sellers. And16500:11:28,360 --> 00:11:31,120when you have autily going super low, when you've had an up trend,16600:11:31,320 --> 00:11:37,240that's normally an indication that he couldreverse Complacency. That absolutely one hundred percent16700:11:37,320 --> 00:11:43,919right, that's an inverse indicator.Complacency is warning you that that everybody is16800:11:45,120 --> 00:11:50,320really comfortable and the slightest little thingthat goes off center. And I'm not16900:11:50,480 --> 00:11:54,120expecting a big crash now, youknow, ten twenty percent, but we've17000:11:54,120 --> 00:11:58,919gotten frothy here at the SMP fivehundred is about fifty percent above where historically17100:12:00,120 --> 00:12:01,799what we said that last week,and it wasn't even higher. And what17200:12:01,799 --> 00:12:05,320we mean by that is the priceto earnings price charning using the traditional price17300:12:05,360 --> 00:12:11,879sharnings major. The fear index isthe lowest it's been in over three years.17400:12:11,440 --> 00:12:16,480Those are all things that you reallydon't want to see if you think17500:12:16,480 --> 00:12:20,759in the if you want the marketto go higher. So the Economy Bank17600:12:20,799 --> 00:12:24,720of America says consumer spending is slowing, and again that would be consistent with17700:12:24,879 --> 00:12:31,399the quarterly earnings reports that we justsaw a lot of them predicted h guidance17800:12:31,480 --> 00:12:35,720was disappointing or reduced that things goingforward aren't going to be that great.17900:12:37,559 --> 00:12:41,919The government reported last week the highestfirst time jobless claims since October of twenty18000:12:41,919 --> 00:12:46,759one. That was a really interestingreport and one that the SMP in the18100:12:46,799 --> 00:12:50,399market did respond to briefly. AndI'm interested to see how that continues,18200:12:50,440 --> 00:12:54,360because last week the labor market reportwas just weird, right, I mean,18300:12:54,360 --> 00:12:58,639you had the unemployment increase, butnon farm non farm payrolls increase as18400:12:58,679 --> 00:13:01,720well, Like how does that allstop? You? Now, let's see18500:13:01,720 --> 00:13:07,279it. You know it's it's they'retrying to do it in a quick manner.18600:13:07,360 --> 00:13:11,320And so they're using, they're usingsnapshots. It's like when you're pulling18700:13:11,360 --> 00:13:13,639people after during the election. Youknow, you try it, you try18800:13:13,639 --> 00:13:16,000to get it right. And ifyou do this and ask this, ask18900:13:16,080 --> 00:13:20,519these questions of these people, you'vegot an eighty percent chance of getting it19000:13:20,600 --> 00:13:24,159right, but you've also got atwenty percent chance of getting it wrong.19100:13:24,200 --> 00:13:30,360So um, that can happen.But again, everything we're seeing would indicate19200:13:30,399 --> 00:13:33,919that the market and the economy areexcuse me, the economy is slowing down.19300:13:35,240 --> 00:13:39,919But but what traders are seeing,Todd, I think is this Goldie19400:13:39,960 --> 00:13:43,440locks scenario where the Federal Reserve isnot going to raise interest rates any further.19500:13:45,039 --> 00:13:52,159Right, AI is going to drivecorporate profits. Recession has been avoided.19600:13:52,879 --> 00:13:56,360H every We did come in forthe soft landing and succeeded, and19700:13:56,519 --> 00:14:00,919now we've all disembarked and it's timeto head to the beach and party.19800:14:01,240 --> 00:14:05,919Yeah. The only problem with thatis then you your soul driver is fomo19900:14:05,320 --> 00:14:07,480at that point, right, everyone'sgonna be like, oh, well,20000:14:07,480 --> 00:14:11,399we're gonna miss out. We've beenplaying cautious for the last X number of20100:14:11,399 --> 00:14:13,960months, but this is the bigbull run. I need to go in20200:14:15,000 --> 00:14:18,320now. Yeah, there is absolutelya fear of missing out. Yeah,20300:14:18,360 --> 00:14:22,600and that's obviously why we've had sucha big run up in distort fomo is20400:14:22,639 --> 00:14:26,320fear of missing out. We seethat. We see that a lot with20500:14:26,440 --> 00:14:33,559memestocks in the crypto and US.It's just that feeling that, oh,20600:14:33,600 --> 00:14:37,639they're getting thirty percent returns, evenwhen that person's risk tolerance is probably like20700:14:37,679 --> 00:14:39,279a fifty sure, but they're like, oh, I want the thirty percent20800:14:39,360 --> 00:14:43,320returns, not knowing that those returnscome with a great amount of risk associated20900:14:43,360 --> 00:14:46,600with them. If you can't stomachthat risk, you can't be looking at21000:14:46,600 --> 00:14:50,639those returns, right. Talk aboutall the time on the show looking at21100:14:50,639 --> 00:14:54,120the S and P five hundred asa benchmarks your portfolio, especially when your21200:14:54,120 --> 00:14:56,720portfolio is balanced. It's just notright. You have to look at it21300:14:58,399 --> 00:15:01,679apples and apples, not apples toO. Yeah. Absolutely, you can't.21400:15:01,879 --> 00:15:05,159I guess, I guess you can't. You can't drive to Phoenix in21500:15:05,200 --> 00:15:11,559an hour without taking excessive risk,right, Yeah, that's your way to21600:15:11,559 --> 00:15:13,320put It's gonna happen. And ifyou if you can't handle going one hundred21700:15:13,320 --> 00:15:16,480and forty miles an hour on thefreeway, then you probably won't get to21800:15:16,480 --> 00:15:20,639Phoenix in an hour, right,Relax, Yeah, it's gonna be okay,21900:15:20,720 --> 00:15:24,879it'll it'll still be there. Andevery one of these opportunities that you22000:15:24,919 --> 00:15:28,200think you've missed, there's always anothertrain coming. I've been doing this for22100:15:28,200 --> 00:15:31,639a long time. There's always anothertrain coming, and you just need to22200:15:31,679 --> 00:15:37,600be patient. Uh, stick withinyour risk parameters, wait for your train,22300:15:37,039 --> 00:15:41,799and you'll you'll have a chance.Yeah. Extreme fomo and extreme fear22400:15:41,840 --> 00:15:45,159are the two emotions you need tolook out for when you're investing, right,22500:15:45,200 --> 00:15:48,919because when you're extremely fearful, youthink you need to sell everything just22600:15:48,000 --> 00:15:52,720at the one time where you probablyshould be buying, and right when you22700:15:52,759 --> 00:15:54,720have that extreme fomo. If ohit could just it could go to four22800:15:54,799 --> 00:15:58,519hundred to five hundred, Yeah,I could, but it can also go22900:15:58,559 --> 00:16:00,600from four hundred to two hundred.And we're talking late last week and we23000:16:00,679 --> 00:16:06,679do have an inverse position an insurancepolicy on all of our accounts, less23100:16:06,679 --> 00:16:10,919than ten percent, but it's stillan insurance policy. And we were talking23200:16:10,919 --> 00:16:12,480about what our thoughts were, andI said, well, this has got23300:16:12,480 --> 00:16:15,720to be a really good sign,because I want to take that and sell23400:16:15,759 --> 00:16:18,759it all. I want to sellall the insurance, So that's that's got23500:16:18,759 --> 00:16:22,440to be. We're not immune tothat. We're not immune to those feelings.23600:16:22,879 --> 00:16:27,240But what a money manager can do, and I've seen this written up23700:16:27,279 --> 00:16:30,240before that this is the number onething that you pay for with a money23800:16:30,279 --> 00:16:33,840manager is take the emotion out ofit. Yeah. And and we have23900:16:33,919 --> 00:16:38,279the we have the we have emotions, but they don't impact our trading.24000:16:38,639 --> 00:16:41,879It's like the Federal Reserve, right, they say they're data dependent, Yeah,24100:16:41,960 --> 00:16:45,799and whether they are not, youknow, we also would say we24200:16:45,840 --> 00:16:51,080are data dependent, which brings upan interesting point where next week's calendar is24300:16:51,120 --> 00:16:55,519a lot busier than this week's calendarwith two major things on it and on24400:16:55,559 --> 00:16:59,879Tuesday, the CPI. Yeah,and that's interesting because the CPI has dropped24500:17:00,120 --> 00:17:04,359or ten consecutive months. The ClevelandFed has been predicting over the last few24600:17:04,440 --> 00:17:10,440days Todd that the CPI number onTuesday is going to be two point five.24700:17:11,160 --> 00:17:15,720Two point five. Who's saying this, the Cleveland Fed, and they've24800:17:15,759 --> 00:17:19,640it's been widely reported on MSNBC thatit's going to be two point five the24900:17:19,720 --> 00:17:25,319overall, not their district, no, the overall up and if that's the25000:17:25,359 --> 00:17:30,559case. That's a fifty percent declinefrom from the from April. Right,25100:17:30,759 --> 00:17:34,480that's a fifty percent decline. Itwould be the biggest month over month decline25200:17:34,519 --> 00:17:41,359in inflation ever. H Now,let me say this. We've talked about25300:17:41,359 --> 00:17:45,759this on the show too. We'vesaid that when the Fed fund rate gets25400:17:45,839 --> 00:17:51,519above the rate of inflation, whichit is, that inflation tends to drop25500:17:51,680 --> 00:17:56,119rather precipitously. Right. Also,the other thing we need to keep in25600:17:56,200 --> 00:17:59,240mind, and we haven't said thisfor a while, is there's a lot25700:17:59,240 --> 00:18:03,440of lagging data in the CPI calculation. One of it is housing sector.25800:18:04,039 --> 00:18:08,799You don't get this month's housing datain this month's CPI. It's a twelve25900:18:08,799 --> 00:18:14,400month lag. So we're getting lastyear's housing market when it really did fall26000:18:14,519 --> 00:18:18,960precipitously, that's now showing up intoday's CPI. That must be what they're26100:18:18,960 --> 00:18:22,440saying. The dropping oil that Ican, you know, big dropping oil26200:18:22,440 --> 00:18:26,200prices. Oil creep back up toeighties, now it's seventy again. And26300:18:26,279 --> 00:18:30,119I think the biggest one in thirtythree percent of CPI, I believe is26400:18:30,119 --> 00:18:33,559housing. Think they're doing with fortyone anyway, it's a big chunk.26500:18:33,599 --> 00:18:37,400It's a huge chunk, right,and so if that would make sense that26600:18:37,400 --> 00:18:40,200that would cause a big drop,because other than that, there's really it26700:18:40,240 --> 00:18:44,440doesn't feel like anything has gone supercheap like that. No, and Defender26800:18:44,519 --> 00:18:49,359Reserve is is indicating that they're goingto keep interest rates flat at the meeting26900:18:49,400 --> 00:18:55,240next week. I see like afifteen percent chance. Yeah, rating crease,27000:18:55,559 --> 00:18:59,079so almost no chance. Now thatdoesn't mean they won't, but they're27100:18:59,119 --> 00:19:03,640generally pretty aware of what's going onin the market, and if you get27200:19:03,640 --> 00:19:07,160a CPI number, they may knowthe CPI number or may have an indication27300:19:07,640 --> 00:19:10,599that it's going to be in thattwo and a half three percent range.27400:19:10,640 --> 00:19:14,279If that's the case, then theirfight is almost over, right. And27500:19:14,319 --> 00:19:18,920they did say that they are allowedto change their decisions after the CPI comes27600:19:18,920 --> 00:19:21,960out because they meet on Tuesday,but there they can change their decision if27700:19:22,000 --> 00:19:23,400they need it to for any reason. Well, they get CPI the very27800:19:23,400 --> 00:19:26,279first thing, Tuesday morning, andthen their meeting, the second half of27900:19:26,279 --> 00:19:29,599their meeting is on Tuesday, right, I'm sorry, the first half of28000:19:29,599 --> 00:19:32,519the meetings on Tuesday and the secondhalf on Wednesday, So we don't find28100:19:32,559 --> 00:19:36,480out until around eleven am TuS ontime on Wednesday. What they're going to28200:19:36,559 --> 00:19:40,079do. Odds are good they donothing. If it's two point five,28300:19:40,160 --> 00:19:42,559I can't see if they do anything. No, you know, now that's28400:19:42,559 --> 00:19:48,119what's interestingly, that's what's expected.So if it comes out and it's dropped28500:19:48,160 --> 00:19:51,720from four and a half to three, the chance of market sells off,28600:19:52,279 --> 00:19:56,480So we'll see. I heard atheater. Oh, the commentator misspoke.28700:19:56,720 --> 00:20:00,240He meant four point five, becauseI think in May it was four point28800:20:00,319 --> 00:20:03,400seven or four point eight, soI think only even at four point five,28900:20:03,920 --> 00:20:07,000What do you mean two point five? How does it go from five29000:20:07,039 --> 00:20:11,240almost five to two point five inone month? It seems unlikely. I29100:20:11,240 --> 00:20:15,359would love to see it, butthat's what they've talked about. I heard29200:20:15,400 --> 00:20:18,839that from multiple sources all during theweek, the two point five, And29300:20:18,880 --> 00:20:21,759like I say, first time Iheard it, I thought that the commentator29400:20:21,799 --> 00:20:25,160had misspoke. If it does dropthat much, then you start to really29500:20:25,200 --> 00:20:29,559think about deflation right now, becausethen they're not that far away. No.29600:20:29,799 --> 00:20:32,160I mean, their goal was twopercent inflation, and if there are29700:20:32,160 --> 00:20:33,920two and a half, that's that'spretty close. But that's what people forget29800:20:34,039 --> 00:20:38,759is their goals supercent, not aboveor below, because when you get deflation,29900:20:38,839 --> 00:20:42,279that's a really bad Yeah, that'shorrible, and we're always scared of30000:20:42,279 --> 00:20:47,480inflation, which rightfully so, butdeflation is also really bad for an economy30100:20:47,519 --> 00:20:51,079that's based on debt, right,and it's all based on debt. So30200:20:51,480 --> 00:20:56,319we've already seen the default problems allacross the industries, So that could be30300:20:56,319 --> 00:21:00,440another problem if we really do continuouslyfault into deflation. Now, you've got30400:21:00,440 --> 00:21:03,759to have some level of inflation atthe free, healthy economy, right,30500:21:03,880 --> 00:21:07,839there has to be some level ofinflation. It just doesn't need to be30600:21:07,920 --> 00:21:12,359nine percent, right, So thosetwo calendar items will dictate a lot of30700:21:12,440 --> 00:21:18,160market action next week. Oil OPECvoted to leave production at current levels,30800:21:18,160 --> 00:21:22,720which is kind of what we expected. We said last week it's unlikely with30900:21:22,039 --> 00:21:26,039prices down as much as they are, that they're going to agree to cut31000:21:26,079 --> 00:21:30,319production, but the Saudi Arabians didsay that, in fact, they're gonna31100:21:30,799 --> 00:21:34,720cut a million barrels a day.Well, they had bigger business moves on31200:21:34,759 --> 00:21:41,000their hands, yeah, the PGA, right, Yeah, they really made31300:21:41,039 --> 00:21:42,079that good. I don't know ifit's a good or bad move, but31400:21:42,119 --> 00:21:49,039they merged with PGA to live.Very impressive in my opinion that the Saudis31500:21:49,039 --> 00:21:52,400were able to get that deal.Oh my goodness, yes, and be31600:21:52,519 --> 00:21:53,920dealing Greenberg, mister golf is withus. Yeah, what do you think31700:21:53,960 --> 00:21:56,960about that? But yeah, withthe deal, I think that's a terrible31800:21:57,000 --> 00:22:03,599deal. And I think the PGA, the commissioner of it, he just31900:22:03,680 --> 00:22:07,400went behind everybody's back. They dida secretively him and the guy that runs32000:22:07,400 --> 00:22:11,039the Saudia Investment Fund. Nobody knewabout to except them too, until the32100:22:11,039 --> 00:22:14,480way PGA players found out was thenext morning on Twitter like everybody else.32200:22:14,880 --> 00:22:18,799Then that'd be voted on by anyboarded directors or anything the latterly and he32300:22:18,839 --> 00:22:22,880made the deal. And the wholething is why everybody's mad about it is32400:22:22,880 --> 00:22:26,680because for a year he touted theloyalty of the guys that stayed with the32500:22:26,680 --> 00:22:30,640PGA that turned down the huge contracts, like Hadeki Matsuyama was offered like three32600:22:30,720 --> 00:22:33,279four hundred million dollars to go overand he turned it down because he wanted32700:22:33,279 --> 00:22:37,640to stay with the PGA. Multipleguys on hundred plus million dollars contracts they32800:22:37,640 --> 00:22:41,240turned it down saying because if theywent with live. They were never gonna32900:22:41,240 --> 00:22:44,799be able to play on the PGAagain, is what the cover said.33000:22:44,839 --> 00:22:47,319That's what he said last year.So they're like, well, I want33100:22:47,319 --> 00:22:48,279to play on the PGA. Ilike the tradition of it. I like33200:22:48,319 --> 00:22:52,599all this majors. At that point, we're up in there too, so33300:22:52,640 --> 00:22:55,319they're like, I want to playin it. And then a year or33400:22:55,359 --> 00:22:56,559later they do this, so nowit's just a slap in the face to33500:22:56,680 --> 00:23:00,400them. It's just like they justuse him as a pawn. And the33600:23:00,440 --> 00:23:02,960guy was like, we don't wanttheir dirty money because of whatever they do33700:23:03,000 --> 00:23:07,960with their money over there, that'salways a big if. And they took33800:23:07,960 --> 00:23:11,480the money. Well here they hadthe Pashaw was accusing the Saudis. Part33900:23:11,480 --> 00:23:17,559of me was accusing the as Saudisof using astronomical sums of money to cover34000:23:17,839 --> 00:23:21,599Saudi atrocities. Well yeah, Imean the size of stow their money at34100:23:21,640 --> 00:23:25,000everything. That's now, let's gettogether, right. That's why everybody's pissed34200:23:25,000 --> 00:23:27,440off, and even the commissioners like, if I'm looked at as a hypocrite,34300:23:27,519 --> 00:23:30,960I get it. And it's likeyeah, because you are, well34400:23:30,039 --> 00:23:33,039yeah, you're you're saying you hateeverybody over there, and now all a34500:23:33,119 --> 00:23:36,880sudden, your partners and you makethe PGA players who decided to stay with34600:23:36,920 --> 00:23:40,599you out of loyalty look like idiots. And the guys that took hundreds of34700:23:40,599 --> 00:23:44,240millions of dollars and didn't care aboutabout any of this, they all make34800:23:44,279 --> 00:23:48,359out like bandage exactly. It justI don't know how that works out.34900:23:48,440 --> 00:23:52,839We have a guest coming on inour second hour. We've been talking a35000:23:52,839 --> 00:23:59,119lot about solar and about electric carson this show, but not a lot35100:23:59,160 --> 00:24:00,640of us know a lot about sowe're lunch the cars. Other than we35200:24:00,680 --> 00:24:04,880have opinions. We've got a guycoming on that it really knows this stuff35300:24:04,920 --> 00:24:08,440inside and out. And he said, you'd rather do a white reader,35400:24:08,480 --> 00:24:12,480white paper about this stuff than watchingNetflix. So m he's a he's a35500:24:12,519 --> 00:24:15,920serious, serious guy about this andI'm looking forward to talking to him in35600:24:15,960 --> 00:24:19,480the second hour. We appreciate youjoining us. We've got Todd, We've35700:24:19,519 --> 00:24:22,799got Dylan, we've got Dave.We'll be back right after this break.35800:24:23,079 --> 00:24:37,519Thanks again. Say it's all anwelcome back to the Money Matters Show.35900:24:37,559 --> 00:24:41,200My name's Toddlick. I'm here withDylan Greenberg and Dave Sherwood. Again,36000:24:41,559 --> 00:24:45,720quiet week because next week is not. It's gonna be a busy one.36100:24:45,759 --> 00:24:49,759We have CPI Tuesday, Federal ReserveWednesday, and then retail sales on Thursday.36200:24:49,839 --> 00:24:53,759So it's gonna be a full ofeconomic data. We're really gonna see36300:24:53,759 --> 00:24:56,519what's going to happen. But didyou see some of the short squeezes that36400:24:56,599 --> 00:25:02,240happened this week, maybe like Carbona? Yeah, that was the Carbona thing36500:25:02,319 --> 00:25:06,359is I think it's just a memestock, don't you at this point or36600:25:06,440 --> 00:25:08,079everything? It seems like it.And and it looks like there's some reports36700:25:08,079 --> 00:25:11,000that they're going to try to sellsome of that equity while it's higher,36800:25:11,039 --> 00:25:15,119wouldn't you? Why? Why not? Right? Yeah? Some other companies36900:25:15,119 --> 00:25:18,119that actually want to tell what happenedon Carbona. It first of all,37000:25:18,119 --> 00:25:22,759it was almost on the edge ofbankruptcy, almost zero, right, Yeah,37100:25:22,799 --> 00:25:25,640And all of a sudden it lookslike they're going to return to profitability.37200:25:25,640 --> 00:25:30,599And the stock was up fifty percenton Thursday. It's nearly quadrupled in37300:25:30,640 --> 00:25:33,160the last thirty days. So ifthey're really smart, they do a big37400:25:33,200 --> 00:25:37,759stock offering and pay off all theirdebt and they actually might make it right,37500:25:37,160 --> 00:25:42,200right, I mean it's other companiesexperienced it as well, up starting37600:25:42,240 --> 00:25:47,279in the firms, all nice pops, and you know, it's going to37700:25:47,319 --> 00:25:51,599be interesting how they continue to see. DocuSign also said that they're actually coming37800:25:51,640 --> 00:25:55,160back with real growth, so interestingto see that. It seems like a37900:25:55,200 --> 00:26:00,920great company, really low expenses,unless they just are paying too many employees.38000:26:00,960 --> 00:26:06,559I mean everyone does DocuSign or youknow, those electronic documents and Zoom38100:26:06,599 --> 00:26:11,359and all of those pandemic garlanes theygot cobbed and maybe they maybe there really38200:26:11,960 --> 00:26:14,799is a reason to have them.Yeah, But the issue with document is38300:26:14,799 --> 00:26:18,240there's a lot of competition now withthe signing companies, Like I know,38400:26:18,839 --> 00:26:21,960a bunch of different companies use differentones, so it's not just DocuSign,38500:26:22,079 --> 00:26:27,000Like Zoom seems to be the mainonline chat thing like that from what I38600:26:27,000 --> 00:26:30,200know, I mean, you gotTeams and stuff with Microsoft. But other38700:26:30,200 --> 00:26:32,559than that, as Zoom, Iknow, DocuSign has got a lot of38800:26:32,599 --> 00:26:34,720competition that's come up in the lastfew years. Jim has got a little38900:26:34,720 --> 00:26:38,000competition too, I'm Microsoft, right, yeah, I think teams is really39000:26:38,000 --> 00:26:40,960the only one though, you know, one company I think it is very39100:26:41,000 --> 00:26:44,880similar to that its Salesforce, becauseSalesforce is a CRM, it's a client39200:26:44,920 --> 00:26:49,000relationship database, and you know,there's a lot of those out there,39300:26:49,079 --> 00:26:52,759and a lot of companies even maketheir own internal ones. So I think39400:26:52,759 --> 00:26:59,519there is definitely some of those technologiesthey have a ceiling on on scaling because39500:26:59,559 --> 00:27:04,839of of just the industries that they'reselling to. Its interesting salesforce. Dot39600:27:04,839 --> 00:27:11,000Com was the worst performing Dallas stocklast year, and it's the best performing39700:27:11,079 --> 00:27:14,000doallstock this year. It had arough week this week, but Dylan,39800:27:14,240 --> 00:27:18,680you just you've got some numbers fromMay. Yeah, and the dogs of39900:27:18,720 --> 00:27:22,079the doubt if you guys have everheard that, Absolutely it's the worst performing40000:27:22,119 --> 00:27:25,599stocks the year before tend to bethe best performing stocks the next year.40100:27:25,599 --> 00:27:27,960And that's holding true with CRM.They were terrible last year. This year40200:27:29,000 --> 00:27:33,359they're up sixty nine percent sixteen yearto day. May they were a fifteen40300:27:33,359 --> 00:27:37,680percent alone. So even though there'sa bunch of the CRMs out there,40400:27:37,720 --> 00:27:41,559Salesforce is killing it this year atleast. But then you got and then40500:27:41,799 --> 00:27:45,960obviously it's the tech Microsoft and thethirty doll stock. These are the thirty40600:27:45,960 --> 00:27:48,720dolls stocks. O. Sorry,these are the top three thirty dollas stocks40700:27:48,960 --> 00:27:52,440for twenty twenty three. Yeah,CRM Salesforce, and then number two is40800:27:52,480 --> 00:27:56,519Microsoft. Number three is Apple,and they didn't have a good year last40900:27:56,599 --> 00:27:59,279year either. Apple they were nowApple really was the middle of the pack41000:27:59,359 --> 00:28:00,400question. Yeah, it was kindof dead and then it just dropped two41100:28:00,440 --> 00:28:03,960and then Microsoft didn't have a greatyear, and they're up thirty eight percent.41200:28:04,039 --> 00:28:08,720Microsoft and Apple's up thirty seven percent. And then Intel, which is41300:28:08,720 --> 00:28:11,319surprising because usually it doesn't do much, is up twenty one percent for the41400:28:11,400 --> 00:28:15,480year. It had a good monthlast month too, is up six percent.41500:28:15,160 --> 00:28:18,759So the tech and we've been talkingabout it too, I mean tech.41600:28:18,839 --> 00:28:21,839There's a few tech companies that havereally been driving this market. And41700:28:21,880 --> 00:28:25,119that's why we're always playing the cautiousside for the last few months, because41800:28:25,519 --> 00:28:27,880if you see a twenty percent pullbackand say an Apple, Microsoft, then41900:28:27,960 --> 00:28:33,200Nvidio, those stocks, the wholemarket could just pull back. You can42000:28:33,240 --> 00:28:36,279see it because I mean the SMPfive hundred as it is up twelve percent42100:28:36,400 --> 00:28:38,759year to date, but the equalweight is up three percent. What's that?42200:28:38,839 --> 00:28:42,680What's at the bottom of that list. The bottom is three M is42300:28:42,680 --> 00:28:48,960the very bottom. And then yougot h w BA Walgreens. Yeah,42400:28:48,440 --> 00:28:52,240it's Alliance, and then you gotChevron, right and see that's why they42500:28:52,319 --> 00:28:56,599equal weighted is doing so poorly.Yep. The equate is gonna have The42600:28:56,599 --> 00:29:00,799oil stocks are all beat up,the drug stocks are all beat up.42700:29:00,480 --> 00:29:04,519Three AM poort three am. Can'tI say poor three am can't even get42800:29:04,519 --> 00:29:07,680out of their own way. Forthe last about two years now, it42900:29:07,839 --> 00:29:10,319was near the bottom of the listlast year well, and speaking of the43000:29:10,359 --> 00:29:11,880dogs of the doubt, Chevron wasat the top all of last year.43100:29:11,920 --> 00:29:15,160First they were absolutely bottom. Yeah, and it was third from the bottom43200:29:15,279 --> 00:29:18,559right now, third from the bottom, yep. And then you got Caterpillars43300:29:18,559 --> 00:29:21,240down there, j and j Amgen. A lot of the value stocks are43400:29:21,279 --> 00:29:22,160down there. But if you lookat if you look at it the way43500:29:22,160 --> 00:29:26,160we're looking at it on a onethrough thirty list right now, for a43600:29:26,240 --> 00:29:29,000year to date, it's really abouthalf is up and half is down.43700:29:29,519 --> 00:29:32,960That's what it looks like. Weshould explain to why they Equated is not43800:29:33,240 --> 00:29:37,319up as much as yeah, andso the dogs of the doubt. It43900:29:37,440 --> 00:29:41,319also went to the dogs of theNAZ the NASDAC, right, NASDAK was44000:29:41,319 --> 00:29:44,920the worst performing index and now it'sby far the best performing index. It's44100:29:44,920 --> 00:29:48,720it's the catrarian trade is going verywell for you in twenty twenty three.44200:29:48,839 --> 00:29:51,960Yeah, exactly. NASDAC was downthirty three percent during twenty twenty two and44300:29:52,000 --> 00:29:56,680now it's up twenty seven percent.The NASDAC will lead up and down always,44400:29:56,799 --> 00:30:00,720but it's the same idea well,Russell two thousand, Russell two thousand44500:30:00,720 --> 00:30:04,599can have a say on that,because we're doing well. Tech is the44600:30:04,599 --> 00:30:08,359growth engine of the market. Itis forever. If growth is slowing,44700:30:08,720 --> 00:30:11,160tech is slowing. Yeah, butI get what you're saying with the Russell44800:30:11,160 --> 00:30:14,480two thousand is that the small capscan run, so if they do.44900:30:14,880 --> 00:30:17,960But this year we're seeing that itis the NASDAC the tech companies are.45000:30:17,960 --> 00:30:21,640But it also then again, it'sjust a handful of them that are really45100:30:21,680 --> 00:30:23,279running. I mean, and Videohas been running this market a lot.45200:30:23,480 --> 00:30:26,400I want to talk a little bitabout Apple because their product that they released45300:30:26,400 --> 00:30:30,279on Monday, the Vision Pro.I think that's something that can be very45400:30:30,359 --> 00:30:34,319interesting in the next five years.It's their new it's like the first new45500:30:34,319 --> 00:30:37,880product they've released in two thousand andfourteen to watch. Yeah, and that45600:30:37,960 --> 00:30:41,279was fourteen now, yeah, fourteen, twenty fourteen for the Watch for the45700:30:41,319 --> 00:30:44,799Apple Watch. Double check that.But that, man, I heard the45800:30:44,799 --> 00:30:47,839same thing. Dylan's first. It'stheir first new product in like eight or45900:30:47,920 --> 00:30:49,839nine years now. That really it'shard to believe it, but I guess46000:30:51,039 --> 00:30:55,039I've had to watch for three orfour years. It's possible. Yeah.46100:30:55,079 --> 00:30:56,920I think. Also, we heara lot of like rumors out of Apple,46200:30:57,119 --> 00:31:00,039like that Apple car. It's like, what's not really a product yet,46300:31:00,079 --> 00:31:04,000it's just like a rumor. Yeah, twenty fifteen, the Apple Watch46400:31:04,079 --> 00:31:07,759came out. Wow, that's amazing. But the reason I like the vision46500:31:07,759 --> 00:31:14,440pros so much is it's augmented reality, not just virtual reality. And I46600:31:14,480 --> 00:31:17,880don't think it's there yet. Thetechnology isn't there yet because it's still a46700:31:17,880 --> 00:31:22,720headset, and I think that's it'sjust burdensome to have that on your head.46800:31:22,799 --> 00:31:25,799Eventually, if they can make itinto just a sunglasses, right,46900:31:25,880 --> 00:31:30,119or just glasses and you're able tonavigate because this vision pro you navigate with47000:31:30,160 --> 00:31:33,079your eyes. You you you know, you you're doing everything with your eyes,47100:31:33,119 --> 00:31:37,079your hands and that's it. Youcan FaceTime people. You it's like47200:31:37,119 --> 00:31:41,599having a phone. I mean really, eventually the smartphone is going to be47300:31:41,599 --> 00:31:45,400transitioned into just glasses. Well likeif you got if anybody out there has47400:31:45,799 --> 00:31:48,440the Apple car Play on their intheir cars, that's what it looks like47500:31:48,720 --> 00:31:52,240on there. And then you butyou get your regular messages that look like47600:31:52,240 --> 00:31:56,319your iPhone. And then it's crazyhow you can just pinch. You pinch47700:31:56,359 --> 00:31:59,559with your hands. There's no youdon't have joysticks or anything like you do47800:31:59,559 --> 00:32:01,480with the list is as you pinchwith your fingers, you do that like47900:32:01,480 --> 00:32:05,160you move them. You can zoomin with things with your hands. You48000:32:05,160 --> 00:32:08,599can have like one hundred inch TVjust sitting on your couch with the goggles.48100:32:08,640 --> 00:32:13,160But they are huge. So ifyou can make them a normal glasses48200:32:13,160 --> 00:32:15,400size and the yeah they're gonna geta lot more popular, maybe eventually contact48300:32:15,480 --> 00:32:20,440size. I mean yeah, thethings that it sounds science fiction, but48400:32:20,599 --> 00:32:22,240you know, twenty years ago everythingsounds science fiction. You see it now,48500:32:22,440 --> 00:32:25,799it looks like Iron Man's what hesees, right, how he sees48600:32:25,799 --> 00:32:29,680all that stuff with like on oneside he has all the map and everything.48700:32:30,200 --> 00:32:32,119I just think there's so much growththat can come out of that for48800:32:32,200 --> 00:32:36,400Apple, because right now everyone hasa smartphone. It's like, well,48900:32:36,400 --> 00:32:39,880how many people need a new smartphone? This product would change everything. Well,49000:32:39,880 --> 00:32:43,880it's interesting too that they said.So when they brought when they released,49100:32:44,640 --> 00:32:46,200they had this whole day of showingthis, and then they showed the49200:32:46,240 --> 00:32:50,720price, and they got everybody's reactionin the crowd, and everybody gas because49300:32:50,720 --> 00:32:55,319it's thirty four ninety nine three fivehundred dollars pretty much. And everybody's reaction49400:32:55,440 --> 00:32:59,559they gasp, like in shock thatit's so expensive. So now it's gonna49500:32:59,559 --> 00:33:01,599be interesting this Apple going to keepthat price when they eventually released it next49600:33:01,640 --> 00:33:06,000year, or they gonna drop it, and everybody's gonna be really happy that49700:33:06,039 --> 00:33:08,480it's twenty five hundred dollars a piecerather than thirty five hundred because that's the49800:33:08,559 --> 00:33:12,799original price. So they think theypulled it back and then they're gonna want49900:33:12,799 --> 00:33:14,839to buy it even more, andthey're gonna sell you the more. I50000:33:14,839 --> 00:33:20,000think it's gonna take three years beforeit comes really comes about into full scaling,50100:33:20,119 --> 00:33:22,319but I just think it's a greatidea. It's a I listened to50200:33:22,400 --> 00:33:25,480a couple of analysts talking about it, and then they said, the difference50300:33:25,480 --> 00:33:32,440between the Apple headset and the Metaheadset is is night and day. It's50400:33:32,519 --> 00:33:37,680it's it's it's like high definition TVversus regular TV. They said that the50500:33:37,720 --> 00:33:42,599Apple headset was really sharp, reallycrisp to look at Dylan. Have you50600:33:42,720 --> 00:33:45,279used it? Yeah? No,you sound like you've used You've seen the50700:33:45,359 --> 00:33:47,920video. You saw the video.Yeah, nobody's used it. They don't50800:33:47,920 --> 00:33:52,519have it out there. I thinkCNBC had like a prototype they played with.50900:33:52,640 --> 00:33:55,039Yeah, yeah, but like whatwe saw was like the launch day,51000:33:55,039 --> 00:33:58,839like when Steve Jobs showed what theiPhone does. That's what it was.51100:33:58,839 --> 00:34:01,119That's what you're watching. I thinkcommercial of like somebody using it and51200:34:01,200 --> 00:34:05,359showing how how to use your fingersand zoom in. When is it going51300:34:05,440 --> 00:34:07,440to be available to you next year? Next not till next year, until51400:34:07,480 --> 00:34:12,760next year. It had put pushedthe stock to a new all time high.51500:34:12,880 --> 00:34:15,599Oh if you're hitting an all timehigh, the largest company in the51600:34:15,599 --> 00:34:19,760world and an all time high,yeah, man, that's not that's not51700:34:19,800 --> 00:34:23,280too bad. Three almost three trilliondollars market cap, and and it is51800:34:23,320 --> 00:34:29,079in every single in a major index. I thinks in the Dow, it's51900:34:29,119 --> 00:34:31,639in the SP five hundred, it'sin the NASDAC. I think Dylan said52000:34:31,679 --> 00:34:37,800that it's bigger than almost like sixof the G sevens. Yeah, like52100:34:37,920 --> 00:34:42,800it's market cap. It's market caplarger than the GDP of what was up52200:34:42,880 --> 00:34:45,760year to date year to data's upthirty seven percent as a van of May.52300:34:46,119 --> 00:34:49,960It was up from there, right, Oh yeah, it's up more52400:34:49,960 --> 00:34:52,280now, it's up more than fortypercent. So if you have the largest52500:34:52,880 --> 00:35:00,159company in the world that is inevery major index up forty percent of the52600:35:00,239 --> 00:35:04,800year, it's gonna skew the indexes, don't you think. I mean,52700:35:04,800 --> 00:35:07,880it's like our our tax receipts notbeing where they should be when fifteen percent52800:35:07,920 --> 00:35:13,639of the country doesn't have to fileuntil October fifteenth. Makes sense. Apple's52900:35:13,760 --> 00:35:19,440market cap is bigger than Canada's GDP. Italy's bigger than Canada's GDP. Yeah,53000:35:19,639 --> 00:35:22,280and this is when they had evaluationto two point six trillion. Oh,53100:35:22,639 --> 00:35:25,119Italy, South Korea, Russia,Brazil and a whole host of others.53200:35:25,480 --> 00:35:30,000It's insane. They've they've done it. They've done a great job,53300:35:30,440 --> 00:35:35,840great job managing in a company anduh with the products and the loyalty and53400:35:36,039 --> 00:35:39,320at it's a special company and it'suh. Tim Cook has done a great53500:35:39,400 --> 00:35:42,880job stepping in and taken over.Give him all the credit in the world.53600:35:43,360 --> 00:35:46,159Um, we'll be back after thisbreak again, looking forward to the53700:35:46,159 --> 00:35:52,960second hour and where have Ron Lan'scoming in to educate us on solar and53800:35:52,159 --> 00:35:55,719on evs. Looking forward to that. We'll be back right after this break.53900:35:57,480 --> 00:36:06,079Say it's a welcome back. You'relistening to the Money Matter Show.54000:36:06,119 --> 00:36:09,159I'm Dylan Greenberg. I'm here withDave Sherwood and Todd Glick. Dean is54100:36:09,199 --> 00:36:14,760off for the month. Is overoverseas, but not just just fun.54200:36:14,840 --> 00:36:16,800He's got business for the first week. For the first week, it's OURBC,54300:36:16,920 --> 00:36:22,119who's our custodian. They always takethe bigger firms and every other year54400:36:22,119 --> 00:36:24,079they take them to a nice outof the country destination. This year they54500:36:24,159 --> 00:36:28,400chose Ireland, so they get toenjoy that and then they're going all over54600:36:28,519 --> 00:36:30,119year for a couple of weeks.He's able to spend some time with the54700:36:30,159 --> 00:36:36,400executives at RBC and IT people atRBC and give them our ideas. You54800:36:36,440 --> 00:36:39,119can get ideas from them, andyeah, you know that's why we've stayed54900:36:39,119 --> 00:36:42,960with RBC for thirty five years.The whole sense we've been a firm is55000:36:42,960 --> 00:36:45,039because of the loyalty they have andthat we have to them. We're gonna55100:36:45,079 --> 00:36:49,480be loyal because they just always We'renot the biggest firm they have as an55200:36:49,519 --> 00:36:52,880independent firm, but they treat usthe same, and so you're gonna stay55300:36:52,880 --> 00:36:54,840with people like that. They're goodpeople. Yeah, yeah again, and55400:36:55,199 --> 00:37:00,760that relationship that Dean has built givesus a real if we have an issue,55500:37:00,760 --> 00:37:05,320if we have a problem, wehave something that needs to be fixed,55600:37:06,000 --> 00:37:07,840we can get it fixed. Yeah. And they really and I mean55700:37:07,880 --> 00:37:09,559obvious is really up in their gametoo, in the sense of the financial55800:37:09,559 --> 00:37:14,119plan that they really released this pastyear. We've been using a lot with55900:37:14,199 --> 00:37:16,760clients and this show, and it'smore comprehensive than the whole plan we were56000:37:16,840 --> 00:37:20,880using the program we're using this newone. It's easy to use, this56100:37:21,039 --> 00:37:24,599user friendly, and it really showsyou the intricacies of your financial plan and56200:37:24,679 --> 00:37:30,280how every little thing could impact youroutlook through retirement and everything like that.56300:37:30,320 --> 00:37:35,199So it's great and we offer thatfree, complimentary everything if you just if56400:37:35,199 --> 00:37:37,119you guys are interested, you shouldgive us a call. It's a very56500:37:37,159 --> 00:37:39,199good program we use and people seemto find a lot of use out of56600:37:39,239 --> 00:37:44,760it. And then both talking aboutgoing back to the different things we talked56700:37:44,760 --> 00:37:47,159about the dogs of the the DOO. Last year, fixed income, the56800:37:47,199 --> 00:37:52,480fixed income ets and mutual funds thatwe follow, the majority were down,56900:37:52,800 --> 00:37:54,920if not all of them at times. Yeah, and then this year they're57000:37:54,920 --> 00:37:59,639set, they're reversed. Everyone isup except one of them. They're all57100:37:59,639 --> 00:38:02,400positive, not a ton, butit's fixed income. We got just one57200:38:02,519 --> 00:38:05,800is up five percent, and wewould you say, the average is of57300:38:05,880 --> 00:38:09,639the short term fixed in about twopercent, and you've got the equal weighted57400:38:09,760 --> 00:38:13,760SMP five hundred up two point eight. Ye. So if you had a57500:38:13,800 --> 00:38:17,159balanced account that was sixty percent equitiesand forty percent fixed income, your fixed57600:38:17,199 --> 00:38:22,039income was predominantly short term, whichwhich would makes sense with rising rates,57700:38:22,079 --> 00:38:28,360and your equities are predominantly equal weightedSMP five hundred, which makes sense because57800:38:28,400 --> 00:38:32,440you don't want to have seven stocksrunning an equal weighted a balanced portfolio,57900:38:32,760 --> 00:38:37,599then you would expect for the yearto be up somewhere around two point four58000:38:37,679 --> 00:38:43,320two point five as of as oftoday. Yeah, And that's sometimes the58100:38:43,360 --> 00:38:45,880issue we run into is people thinkthey should be in line with the SMP.58200:38:46,199 --> 00:38:49,920Like the regular SMP five hundred rightnow is up a point nine percent58300:38:49,920 --> 00:38:52,760for the year. The majority ofpeople will have more of a balanced account.58400:38:52,800 --> 00:38:57,519It's just especially if you're retired orapproaching retirement, you're gonna have that.58500:38:58,000 --> 00:39:00,519You very rarely have a more aggressiveaccount because you're you're transitioning into a58600:39:00,519 --> 00:39:06,239different phase of life. But theissue comes when they think they should be58700:39:06,400 --> 00:39:08,119up eight point nine percent for theyear and they're up four percent. If58800:39:08,239 --> 00:39:14,199actually as as a Friday's closed,its twelve twelve percent, well that's the58900:39:14,280 --> 00:39:15,800end of you. You know,you're looking at the end of Maakers.59000:39:15,840 --> 00:39:17,880You got mayor force in front ofyou is up. Yeah, that makes59100:39:17,880 --> 00:39:22,400sense, But you're right exactly,and they're not going to be in line59200:39:22,400 --> 00:39:25,679with SMP because that's just really aggressiverisk tolerance, and that just isn't what's59300:39:25,679 --> 00:39:30,079going to happen when you're approaching retirement. When you're in retirement, because you're59400:39:30,079 --> 00:39:32,440not you're not accumulating money anymore.You're trying to preserve it more so and59500:39:32,639 --> 00:39:35,920take income from it. So it'sjust different. But you can't have that59600:39:35,960 --> 00:39:39,920expectation of wanting to be in linewith the SMP five hundred, because last59700:39:40,000 --> 00:39:43,360year, if you just we're allin SMP five hundred, you're down twenty59800:39:43,360 --> 00:39:45,480two percent. Your account would havebeen someone in their twenties or thirties.59900:39:45,519 --> 00:39:50,360You should be one hundred percent inthe SMP five exact hundred percent because you60000:39:50,440 --> 00:39:53,960have time for it to recover.And the one thing every market decline in60100:39:54,039 --> 00:39:58,920history has in common is a newhigh, all time high at some point,60200:39:59,280 --> 00:40:01,199don't know when. It has alwayshappened, always one hundred percent of60300:40:01,280 --> 00:40:06,079the time. It's like we're talkingabout the death Feeling debate. Seventy eight60400:40:06,079 --> 00:40:08,039out of seventy eight, So welike those odds. We thought there might60500:40:08,079 --> 00:40:10,960be as much as one hundred percentchance that they do it again. And60600:40:12,000 --> 00:40:15,000guess what I do want to qualifseventy nine out of seventy nine, what60700:40:15,000 --> 00:40:16,840do we say, I just wantto qualify your statement. Every twenty and60800:40:16,840 --> 00:40:22,800thirty year old with a retirement investmentsshould be maybe there are twenty and thirty60900:40:22,840 --> 00:40:24,960year olds that maybe investing in themarket who could be saving for a house,61000:40:25,039 --> 00:40:30,440which more intermediate short term. Differenttime horizons will dictate different investment philosophies.61100:40:30,480 --> 00:40:34,440But if you have a forty yearplus time horizon, that's when one61200:40:34,519 --> 00:40:37,960hundred percent SMP would make a lotmore. That's a reasonable point. That's61300:40:37,960 --> 00:40:45,039a reasonable clarification because you can havea year like last last year where the61400:40:45,119 --> 00:40:47,519SMP goes down twenty percent, andif you were saving for a house and61500:40:47,639 --> 00:40:51,239you just found the house you want, you've got twenty percent less money.61600:40:51,400 --> 00:40:54,440Not a good idea. So you'rea very good clarification time thing. Yeah,61700:40:54,440 --> 00:40:57,880we always and we suely just likein the sense of that, like61800:40:58,280 --> 00:41:00,000if you're looking to use that moneywith any year two, like for a61900:41:00,039 --> 00:41:04,239down payment a house or a newcar, don't put in the market because62000:41:04,320 --> 00:41:07,719there is uncertainty in the markets.And that's where the financial plan comes into62100:41:07,719 --> 00:41:09,440play, exactly right. I mean, that's where you are laying out what62200:41:09,519 --> 00:41:13,760are your goals, what are yourobjectives, what are we saving four and62300:41:13,800 --> 00:41:16,199then what is your risk? Thenyou put those two together. That's how62400:41:16,199 --> 00:41:20,840we invest, right, And that'sthat's why it's very important to actually develop62500:41:20,880 --> 00:41:22,760a financial plan, otherwise you justkind of seat of the pants. Right.62600:41:23,800 --> 00:41:28,480Once you develop your initial financial plan, is a lot easier to tinker62700:41:28,519 --> 00:41:30,719with it. You have the base, and then you can mess with it62800:41:31,320 --> 00:41:35,039going forward, right, And that'swhy it's important to get the base,62900:41:35,119 --> 00:41:38,639get the first one done. Yeah, and you can when when accounts come63000:41:38,679 --> 00:41:43,199to us for us to review,you can tell which ones are seat of63100:41:43,199 --> 00:41:45,960the pants and which ones have aplan. You really can. Yeah,63200:41:45,320 --> 00:41:50,199this this hodge podge of things thatare in there, It's like, how63300:41:50,199 --> 00:41:54,559did this happen? I don't knowwhat was their plan here? Don't know63400:41:55,199 --> 00:42:00,360what was there thinking regarding this,don't know. And so once you guys63500:42:00,360 --> 00:42:05,880have gone through the plan, they'llknow exactly how to answer those questions exactly.63600:42:05,920 --> 00:42:08,280And that's why we do it.You had a couple more may reforce63700:42:08,360 --> 00:42:10,719there or some reason. Yeah,we got some better numbers over here too.63800:42:10,719 --> 00:42:14,920We got the end of May.We got technology is running so we63900:42:15,000 --> 00:42:19,960follow these SMP sectors the XLK it'stechnology. These are the eleven sectors in64000:42:20,039 --> 00:42:22,920the SMP five hundred. Yep,you got technology, Communications, financial,64100:42:23,039 --> 00:42:27,480utility, stuff like that. Technologyis running away with it. It's up64200:42:27,519 --> 00:42:30,599thirty two percent, but communications isup thirty percent for the year. We64300:42:30,679 --> 00:42:36,039know why because communications is skewed.It has Facebook in it, Yeah,64400:42:36,159 --> 00:42:39,800I meta in it. It's notit's not communications. It's not zon a,64500:42:39,880 --> 00:42:43,280AT and T or it would beat the bottom of the list.64600:42:43,360 --> 00:42:45,880So it's like a technology in asense, isn't it. I mean it's64700:42:45,920 --> 00:42:47,400almost one. You just one ofthe reason it's not up thirty two percent,64800:42:47,440 --> 00:42:50,760it's only up thirty it is becauseit has AT and T and all64900:42:50,800 --> 00:42:53,920in it as well. Could becould be why the the SMP five hundred65000:42:54,079 --> 00:43:00,480is up twelve percent because the communicationssector is simply technology times two. Consumer65100:43:00,480 --> 00:43:06,199discretion areas up eighteen percent for theyear as a major discretion that is the65200:43:06,239 --> 00:43:08,559third highest one, and that's theonly other one in positive territory. The65300:43:08,679 --> 00:43:13,559next closest is industrials and is negativeone percent for the year. Now what's65400:43:13,599 --> 00:43:22,920that tell you? How how thissmall narrow group of stocks is driving this65500:43:22,920 --> 00:43:25,280thing to levels that we have notseen because, for instance, you have65600:43:25,559 --> 00:43:30,400here everything that's a negative territory isindustrials, real estate, consumer staples,65700:43:30,519 --> 00:43:35,760materials, healthcare, financials, utilities, and energy, which killed it last65800:43:35,800 --> 00:43:39,079year. Obviously, you can makea huge argument those top three technology communications65900:43:39,119 --> 00:43:45,119can be consumer discretionary are probably themost volatile parts of the essay. Right,66000:43:45,199 --> 00:43:47,159So you got out of an outof eleven sectors, you have seven66100:43:47,239 --> 00:43:52,639of them that were down, onlythree up, only three or up,66200:43:52,679 --> 00:43:55,960and they're eight big eighteen percent,thirty percent and thirty two percent and the66300:43:57,079 --> 00:43:59,639next and then eight of them ornine of them are sorry, eight of66400:43:59,639 --> 00:44:04,280them are negative territory. So thosethree were were It's it's almost like you've66500:44:04,320 --> 00:44:07,679got a room with eleven people inthem right on. One guy is seven66600:44:07,719 --> 00:44:12,400foot two, you know, andso the average, you know, is66700:44:13,320 --> 00:44:16,119it really is very misleading. Thenthat's why we've been cautious. That's why66800:44:16,159 --> 00:44:22,119we continue to say stick with yourplan, don't get crazy here. Yeah,66900:44:22,159 --> 00:44:25,400it's all people are starting to losethe fear. But it's everything showing67000:44:25,519 --> 00:44:30,960us that it shouldn't be where itis earlier. You're missing out right now.67100:44:30,039 --> 00:44:35,559Yeah, that the VIX, thefear index is will always since February67200:44:35,559 --> 00:44:38,000of twenty twenty. Well, thefact that consumer discretionary is up eighteen percent.67300:44:38,119 --> 00:44:42,199People are scared for discretionaire. Yeah, spending money again where you can67400:44:42,239 --> 00:44:45,199spend it wherever you want. Sothere's and our credit card debt is hitting67500:44:45,280 --> 00:44:47,599record highs, right, so they'restill spending, but they ain't painting it67600:44:47,599 --> 00:44:51,239back because everything's more expensive right now. I will say though, Gas and67700:44:51,320 --> 00:44:54,440Tucson has dropped, So I thinkare the listener that was telling us the67800:44:54,480 --> 00:44:58,960reason why behind everything. I thinkhe was right because now they're done doing67900:44:59,000 --> 00:45:02,119their switch over summer and it's droppedlike seventy cents. It was four o68000:45:02,280 --> 00:45:05,960nine this morning by my house,but it ought to be three o nine.68100:45:06,000 --> 00:45:07,440I know, I'm just saying itwas four eighty for weeks. Maybe68200:45:07,480 --> 00:45:12,760the word spreading that we're onto him. Yeah, it could be right.68300:45:12,920 --> 00:45:15,480They listened to the money. Hey, the Money Matters show has been talking68400:45:15,480 --> 00:45:17,719about you. I think you can'thide it all listeners can thank us.68500:45:17,800 --> 00:45:22,599You can't get away with it muchlonger. So you're welcome. We're happy68600:45:22,599 --> 00:45:27,039to We're happy to do this.The inversion going on the yield curve still68700:45:27,079 --> 00:45:30,519point eight. It moves this week, right, didn't move. This is68800:45:30,519 --> 00:45:35,119the difference between the ten year treasuryand the two year treasury. Again,68900:45:35,159 --> 00:45:38,800you'd expect the ten year treasury yieldto be higher and it's not. It's69000:45:38,840 --> 00:45:44,079inverted, and that's typically the signof a pending recession. I wonder I69100:45:44,079 --> 00:45:46,199got to look this up next week. What's the longest the yield kurds been69200:45:46,199 --> 00:45:50,960inverted for ever in history? Right? We might be working on it.69300:45:51,119 --> 00:45:53,000It's been a year, right,exactly, it's been inverted for a year,69400:45:53,000 --> 00:45:57,840and it generally a recession follows withinthree to six months. It's been69500:45:57,920 --> 00:46:00,880a year and then some And todayI heard somebody talking about I think was69600:46:00,960 --> 00:46:06,920Kramer was talking about the yield curvewas going to get back to normal.69700:46:07,679 --> 00:46:10,079Um, that we've avoided recession.That's a soft landing has happened, and69800:46:10,679 --> 00:46:15,440here we go. Is a Kramercurse still alive? Though? Or I69900:46:15,480 --> 00:46:20,119know I'm gonna bet on the inverseCramer etf on that one. He makes70000:46:20,119 --> 00:46:22,639a lot of good calls, buthe also has some clinkers as anyone does,70100:46:22,719 --> 00:46:25,559as anyone does. Yeah, ifyou if you want a business where70200:46:25,559 --> 00:46:30,039you're never gonna be wrong, thisisn't it. And he's in that twenty70300:46:30,039 --> 00:46:34,480four news type of environment where hehas to make, you know, entertainment.70400:46:34,760 --> 00:46:37,199Yeah, you have to have anidea or two every day. And70500:46:37,280 --> 00:46:39,719guess what, there isn't an ideaor two every day. Exactly. It's70600:46:39,760 --> 00:46:45,639kind of like news. There isnot breaking news every hour of every day,70700:46:45,079 --> 00:46:51,199despite what you're seeing on TV andsome of the sometimes you'll have a70800:46:51,239 --> 00:46:54,440breaking news that will be breaking newsevery hour for a day and a half,70900:46:55,599 --> 00:47:00,159you know, and I'll get yousee the breaking news banner and every71000:47:00,199 --> 00:47:04,000news, same breaking news. Yeah. Wait and wait a second. This71100:47:04,159 --> 00:47:07,000is especially on CNN, it's alwaysa Trump indictment. You know, it's71200:47:07,039 --> 00:47:09,480a breaking news. So um again, we'll be back after the break.71300:47:09,840 --> 00:47:15,239We've got Ron Lands here, who'sgoing to help us with uh evs.71400:47:15,760 --> 00:47:19,079I'm gonna help us with solar andkind of uh. He stopped in one71500:47:19,159 --> 00:47:21,719day not too long ago, andhe said, a long time listener to71600:47:21,760 --> 00:47:22,880the show, and he said,you know, I really got to talk71700:47:22,920 --> 00:47:27,239to you about this. I gottagive you guys some facts and some figures.71800:47:27,239 --> 00:47:30,760So it'll be fun to listen toRon and to hear what he has71900:47:30,800 --> 00:47:34,760to say. He's been living inthis world for many, many years,72000:47:34,760 --> 00:47:39,199and um, we look forward toactually having some some facts and figures as72100:47:39,199 --> 00:47:44,880opposed to what we're emotionally committed to. Right, yeah, exactly. We'll72200:47:44,920 --> 00:47:51,199be back right after this break.Thanks for listening, Good morning, Welcome72300:47:51,199 --> 00:47:52,920back to the Money Matters Show.This is Dave Sherwood. I'm here with72400:47:53,000 --> 00:47:57,119Dylan Greenberg. I'm here with ToddGlick. We have a special guest to72500:47:57,320 --> 00:48:00,800join us. As we talk alot on the show out Evs. We72600:48:00,880 --> 00:48:06,000talk a lot on his show aboutsolar and we have our opinions and we72700:48:06,039 --> 00:48:08,840know what we've read. But wehave someone joined in us this morning who's72800:48:08,840 --> 00:48:15,280actually lived it and lived it fora while. Ron Lance is from Wisconsin,72900:48:15,079 --> 00:48:20,119proud graduate of the University of Wisconsin. My wife of forty one years73000:48:20,239 --> 00:48:24,840is from Wisconsin. I like thingsfrom Wisconsin. Apparently got his NBA from73100:48:24,880 --> 00:48:29,519Marquette. Pointed out that he's aRepublican, so he's not one of these73200:48:29,599 --> 00:48:34,480Uh, this is coming to youfrom someone who has some common sense right73300:48:34,519 --> 00:48:40,119down, an objective listener. Yeah, yeah, the bachelor's degree and chemical73400:48:40,159 --> 00:48:45,239engineering. Spent thirty five years withsc Johnson. He was investigating solar for73500:48:45,320 --> 00:48:50,760the company as far back as twothousand and four. He's on the energy73600:48:50,800 --> 00:48:55,039he's a chairman of the Energy TaskForce for Solar at Saddlebrook. And he73700:48:55,119 --> 00:49:00,199said I'd rather read white papers ontechnology than watch Netflix. So that's where73800:49:00,239 --> 00:49:05,719welcome Ron. Thank you here,come down. We do appreciate it.73900:49:05,880 --> 00:49:08,119Well, there's two main issues we'retalking about here. One is solar,74000:49:08,440 --> 00:49:13,119one is electric vehicles. Let's talka little bit about solar. First.74100:49:13,199 --> 00:49:15,360Let me ask you one question rightout of the shoot. What's the primary74200:49:15,360 --> 00:49:22,800thing that drove you to your teslaand to solver. Well, Um,74300:49:23,079 --> 00:49:28,400as you as you mentioned, Iwas doing this in a work environment,74400:49:28,880 --> 00:49:37,119and back in the early two thousands, solar was like really expensive, so74500:49:37,239 --> 00:49:39,760we did not do that. Wedid some we did wind turbines, we74600:49:39,880 --> 00:49:45,599did um we captured landfill gas burningthe boilers. So I'd always been interested74700:49:45,639 --> 00:49:52,960in this, and of course Iretired in uh in oh five, and74800:49:53,000 --> 00:50:00,159then we had the you know whatrecession and I never sell Lowell, so74900:50:00,239 --> 00:50:05,800I I, uh we cut expensesbecause that was a pretty big hit on75000:50:05,840 --> 00:50:10,079the on the portfolio, as youguys know. And so I went back75100:50:10,079 --> 00:50:15,760and I looked at solar because Iknew the costs were coming down, and75200:50:15,079 --> 00:50:21,760uh lo and behold, running runningall the numbers out in uh in Panell75300:50:21,840 --> 00:50:28,039County where we have Tricho, Icould get a return of eleven percent.75400:50:29,599 --> 00:50:34,320So um, I said, well, you know, I can I can75500:50:34,440 --> 00:50:37,840use that for for cash flow youknow, having having my investment pay for75600:50:37,880 --> 00:50:43,159my electricity bill. So the primaryregion you went with the solar and with75700:50:43,239 --> 00:50:49,239the electric car is because it's agood because money matters, like like like75800:50:49,360 --> 00:50:53,440the name of your show, moneydoes matter, it's all. And what75900:50:53,639 --> 00:51:00,480I learned from uh So, see, Johnson's a private company and the owner76000:51:00,519 --> 00:51:07,079at that time was very interested inenvironmental things, and he said, but76100:51:07,199 --> 00:51:10,840they have to pay. He wasjust going to throw money at it.76200:51:10,920 --> 00:51:15,719He said, figure out what youcan do for projects that will have a76300:51:15,800 --> 00:51:21,039return. So essentially I took thatto my home. In other words,76400:51:21,039 --> 00:51:23,840it has to make economic sense.Absolutely. One of the things that I've76500:51:24,280 --> 00:51:29,079in talking looking at my neighbors,and my neighbors will buy a twenty or76600:51:29,119 --> 00:51:34,199twenty five thousand dollars solar system andtheir electorcy builds one hundred and fifty bucks76700:51:34,199 --> 00:51:36,760a month. I'm thinking, there'sno way you're ever going to get whole.76800:51:37,039 --> 00:51:38,159And when you came in to talkto me a few weeks back,76900:51:38,679 --> 00:51:44,480you said, it's because they don'tknow what they're doing. They don't know77000:51:44,519 --> 00:51:47,719what buying. Essentially, they don'tknow what they're buying. And the contractor77100:51:50,239 --> 00:51:54,159will sell you a way oversized systembecause they can because he makes more money.77200:51:54,360 --> 00:51:57,960They make more money when they dothat. And you said to me77300:51:58,039 --> 00:52:00,639when we talked to the first step, and I had never thought about this77400:52:01,039 --> 00:52:07,280before you and talk to anyone aboutsolar. You have to make your house77500:52:07,360 --> 00:52:09,800interview efficient. Right, never crossedmy mind to start with that. That77600:52:09,800 --> 00:52:14,960that's also true. You you,well, that's the principle. You know,77700:52:15,039 --> 00:52:20,039that's what engineers do. You youreduce your base load and then you77800:52:20,039 --> 00:52:23,599you solve the problems to you know, for example, to go to solar,77900:52:24,199 --> 00:52:28,880so you don't need as biggest system, so you put in LEDs.78000:52:30,159 --> 00:52:34,760You probably have fluorescence up here.Yet you can save a ton of money78100:52:34,760 --> 00:52:40,280by replacing those out with LED tubes. Uh. You can go with um78200:52:42,239 --> 00:52:49,559high seer high sear air conditioning.For example, if your air conditioner is78300:52:49,880 --> 00:52:54,079twenty years old, it's probably aSEAR ten if you buy a SEAR twenty78400:52:54,760 --> 00:53:00,440because you have as much to operate. That's that's what the SEAR means and78500:53:00,519 --> 00:53:05,519how you can compare the numbers fromthe old old to the new. I78600:53:05,679 --> 00:53:07,760just replaced my ar condition in April, so I'm I'm kind of a seer78700:53:07,880 --> 00:53:14,159expert. Very good. I've learnedthat term for the first time. So78800:53:14,360 --> 00:53:21,280when when we did our second houseup in Saddlebrook, the builder had a78900:53:21,440 --> 00:53:25,480solar option, but it wasn't youcouldn't customize it. He had small,79000:53:25,559 --> 00:53:30,599medium, and large. So Iran the numbers. I said, I79100:53:30,679 --> 00:53:37,280need twenty percent smaller than medium.He says, that'll be two thousand extra.79200:53:37,440 --> 00:53:45,599I'll take medium. So go Throughthe first year or two we had79300:53:47,280 --> 00:53:55,000it was very consistent. Right aroundthree thousand kilo loot hours of surplus electricity79400:53:55,039 --> 00:54:00,519that I'm selling back to Tricho fortheir wholesale. I said, this is79500:54:00,599 --> 00:54:05,920not good. You know, I'magain two and a half cents retail is79600:54:06,119 --> 00:54:12,800twelve cents. Where can I usethis electricity? Wow, I'm an electric79700:54:12,800 --> 00:54:22,679car. So I started following EVSand Tesla because one of the test force79800:54:22,800 --> 00:54:35,480members that I was running at twohad ordered a Model three previously, was79900:54:35,519 --> 00:54:38,800the s in the accident. TheModel three came out in twenty seventeen and80000:54:38,880 --> 00:54:45,840twenty eighteen. When we started taskForce, he had one on order and80100:54:45,679 --> 00:54:52,239he was pretty excited about it,and so I started investigating it and figured80200:54:52,280 --> 00:55:01,239out that I could drive eight thousandmiles on two thousand of the three thousand80300:55:01,480 --> 00:55:08,800surplus kilowatt hours. That's you're drivingtwo thousand miles and painted in zero zero.80400:55:09,280 --> 00:55:15,119Yeah, so now I got athousand kilo at hours left over.80500:55:15,079 --> 00:55:22,840So I looked at replacing this wasprobably a dumb thing. I replaced my80600:55:22,239 --> 00:55:30,320air conditioner and gas furnace with aheat pump. So right now I'm pretty80700:55:30,360 --> 00:55:35,239flat plus or minus you know,one hundred at the end of a year.80800:55:35,519 --> 00:55:44,480So it's fully utilized. And ifif roys or break evens are you80900:55:44,519 --> 00:55:51,559know, in eleven thirteen percent onstraight solar. When you add an electric81000:55:51,679 --> 00:55:59,519vehicle, the returns go ballistic.Last year twenty twenty two, it was81100:55:59,559 --> 00:56:06,719a third six percent return because offour dollars fifty cent gasoline, so you81200:56:06,760 --> 00:56:10,239have gasoline avoidance, so that bumpsup your turn. So what I like81300:56:10,320 --> 00:56:17,559to say is that solar plus ab EV is a perfect marriage. Yeah,81400:56:17,719 --> 00:56:21,239sounds like you get it, youget a great return. So that's81500:56:21,320 --> 00:56:25,039that's my story of how I Igot into it. My son in law81600:56:25,199 --> 00:56:30,920in Los Angeles bought a Y model, the Model Y, the SUV and81700:56:31,079 --> 00:56:38,880uh he decided to do the solarroof as a part of that and for81800:56:38,920 --> 00:56:44,239exactly the reasons that you pointed out. So you're saying, if a person81900:56:44,400 --> 00:56:47,000just to kind of close a doorin the solar, if you're considering doing82000:56:47,119 --> 00:56:51,880solar, the first thing you dois become as energy efficient as you can82100:56:52,320 --> 00:56:55,440and then see what your usage reallyis correct, and then see how you82200:56:55,519 --> 00:57:00,920replace that usage. Yes, letme first put some could you Yeah,82300:57:00,960 --> 00:57:04,639you did that, because I haveput I put solar on my house a82400:57:04,719 --> 00:57:07,760year and a half, two yearsago, and hearing what you just told82500:57:07,800 --> 00:57:08,840me, I wish someone would havetold me that two years ago, saying82600:57:08,840 --> 00:57:13,039because I definitely got way more thanI need. I can see that.82700:57:13,119 --> 00:57:16,639But also the thing that they soldme was a battery attached to it the82800:57:16,719 --> 00:57:22,159solar, so they store is yoursolar. Also that same way, you82900:57:22,199 --> 00:57:25,880have a battery where it holds theexcess energy that's not used. No,83000:57:25,960 --> 00:57:34,280I did not have a battery.And the reason is I'm grandfathered into what83100:57:34,400 --> 00:57:40,360it's called annual net metering, soI carry over a surplus. Like say83200:57:40,440 --> 00:57:45,360April is a nice sunny month,you make more than you can use,83300:57:47,000 --> 00:57:52,719and you know there's no air conditioning, so those those kilo one hours go83400:57:52,840 --> 00:57:55,159to the next month, and thento the next month and the next month,83500:57:55,199 --> 00:58:00,320so in July, in August,and September, I'll pull lot of83600:58:00,360 --> 00:58:05,119that that bank account, if youwill, and use it. So that83700:58:05,920 --> 00:58:08,239and that's not available for everyone.No, it's not so now it's the83800:58:08,239 --> 00:58:14,679battery. So the battery. Yeah, then people go about what ten years83900:58:14,719 --> 00:58:20,880ago? So well the latest onewas twenty fifteen. Mark. Mark starts84000:58:20,920 --> 00:58:23,000up and is that why you havea different deal than what Todd has?84100:58:24,159 --> 00:58:28,639And it's where do you you're ont EP? No, I'm SRP up84200:58:28,679 --> 00:58:31,360in Phoenix. Oh okay, SaltRiver Project. Yeah, yeah, I84300:58:31,440 --> 00:58:35,599have solar through TP. But II just bought a house and the previous84400:58:35,639 --> 00:58:37,880owners put solar on there. Howdo you find out if you have all84500:58:37,920 --> 00:58:40,320this because I don't really know.Is there a way because I got it84600:58:40,320 --> 00:58:45,480through Solar City? How do youfind out what like the usage and all84700:58:45,480 --> 00:58:46,880that gifts? I don't think Ihave a battery? Is there a way?84800:58:47,039 --> 00:58:51,920I'm just curious to find it out. Are you getting electric bills from84900:58:52,000 --> 00:58:54,159TEP? Yeah? Is it juston there? Yeah? It's everything is85000:58:54,239 --> 00:58:59,400on the bill, you think,so you have to study it? Twenty85100:58:59,400 --> 00:59:01,880five dollars now I just want toknow. Now, I didn't realize like85200:59:01,920 --> 00:59:05,480that you could buy them in differentincrements of small, medium, large,85300:59:05,559 --> 00:59:08,639or something like that. Oh,it's that that was just the contractors.85400:59:09,119 --> 00:59:16,840Oh wait, they're infinitely customizable.So why is there a battery? Now?85500:59:16,880 --> 00:59:24,039What's the purpose of the battery?The battery is so um that you85600:59:24,079 --> 00:59:30,480can start when you're making it anduse it at night, after after sundown,85700:59:30,519 --> 00:59:35,079and you don't have to buy itfrom the utility. Batteries are still85800:59:35,320 --> 00:59:37,360kind of expensive. And that's thenext point I wanted to bring up.85900:59:37,920 --> 00:59:42,360Is I mean, I think,just for full disclosure, I think it86000:59:42,440 --> 00:59:47,239was forty eight thousand. The entireloan I got to put on to put86100:59:47,280 --> 00:59:52,719on it, I think it wastwelve fifteen panels. The state of the86200:59:52,840 --> 01:00:00,000art whatever LG battery. I thinkof a house for fourteen hundred square feet.86301:00:00,159 --> 01:00:01,960The biggest problem is, I knowfor a fact my house is not86401:00:02,079 --> 01:00:06,559energy efficient. You know what Imean. You're talking about a house built86501:00:06,559 --> 01:00:09,920in nineteen sixty three. There's alot of you know, loose ends where86601:00:09,960 --> 01:00:15,239air gets out. It's Phoenix alsowhere it's extremely hot. So our house86701:00:15,800 --> 01:00:23,599is thirty one hundred square feet thefive point seven kilowatt system was fifteen thousand86801:00:23,639 --> 01:00:32,000before tax credit or ninety five hundredafter tax credit for three thousands plus square86901:00:32,039 --> 01:00:36,880foot house. And we're talking tenyears ago, right, twenty fifteen,87001:00:36,920 --> 01:00:39,920which is about eight years ago.Yeah, so that had a big inflation87101:00:39,960 --> 01:00:45,840obviously during those years. So maybesomething more. But the pricing of panels87201:00:45,840 --> 01:00:50,440and inverters of has come way down. L Batteries are still expenses that you87301:00:50,480 --> 01:00:54,480said, batteries are still expensive,but look for battery costs to come down.87401:00:54,519 --> 01:01:00,519They're coming down by rights law.At that's too details, but fourteen87501:01:00,559 --> 01:01:04,599percent a year, and I willsay, even though I spent you know,87601:01:04,639 --> 01:01:07,480it's a lot of money, Istill probably break even on what I87701:01:07,559 --> 01:01:14,039was spending before or after. Itdoesn't really change how much I was paying.87801:01:14,360 --> 01:01:16,679Probably because I didn't really dig intothe details. I probably could be87901:01:16,679 --> 01:01:20,679saving money if I did it correct. I think the smartest thing that Ron88001:01:20,719 --> 01:01:23,639said to me was Number one,get your house energy efficient. Yeah,88101:01:23,760 --> 01:01:28,960then figure out how much you're actuallyusing and then buy what you're going to88201:01:29,119 --> 01:01:32,320need. And as opposed to allthat, let's let's get onto electric vehicles.88301:01:32,320 --> 01:01:37,239Because the time, let me justthrow in in one thing that's really88401:01:37,280 --> 01:01:44,400important to all the listeners is EnergySage. Sage one word dot com.88501:01:45,840 --> 01:01:50,440They they will get you as manybids as you want, and they will88601:01:50,480 --> 01:01:55,880be competitive and nobody is going totake advantage of you if you go through88701:01:57,000 --> 01:02:00,559Energy Sage, so you will notoverpay the whole deal. I mean,88801:02:00,599 --> 01:02:04,000that's the way to do it.And who are they run? Who are88901:02:04,079 --> 01:02:07,519whose Energy Sage? They're just acompany. You know. They probably get89001:02:07,719 --> 01:02:14,280a three hundred dollars per per contractback from the winning bidder. And they89101:02:14,400 --> 01:02:17,440just put this all together and thatthat text I just got from my neighbor.89201:02:17,719 --> 01:02:22,519So they protect you, they kindof help they Yes, they protect89301:02:22,559 --> 01:02:27,320you very much. So they theyvet all the contractors. Is it energy89401:02:27,360 --> 01:02:32,719sage dot com or yes, energysage dot com. Correct, appreciate that.89501:02:32,800 --> 01:02:36,880Hey, quick question. You've gota Tesla A twenty twenty. You89601:02:37,000 --> 01:02:39,280talked about your wife and you goingon a trip to Vegas and as you89701:02:39,400 --> 01:02:43,000backed out of the driveway, Itold you where you're going to charge?89801:02:43,039 --> 01:02:47,679And yes, which is amazing.How long does it take to charge an89901:02:47,679 --> 01:02:57,199electuy vehicle when you're on the road, Well, it all depends the um90001:02:58,119 --> 01:03:07,599the strategy is to to leave homeat ninety percent technically on on certain kinds90101:03:07,639 --> 01:03:10,679of battery cells, battery chemistries.You don't want to You don't want to90201:03:10,719 --> 01:03:15,800charge one hundred percent every day.So on the sliding scale on the car90301:03:15,920 --> 01:03:23,039it says daily zero to eighty fourtrips eighty two hundred. So you start90401:03:23,039 --> 01:03:34,280out, you know, eighty orI mean und then you you stop.90501:03:35,159 --> 01:03:37,440Well, one of the things Isay is my my battery is bigger than90601:03:37,480 --> 01:03:45,679my bladder. Okay, I gotthat situation. Was you you know in90701:03:45,719 --> 01:03:47,960three hours you'll probably want to stop. Yeah, I never made it that90801:03:49,039 --> 01:03:57,000far. Um. And then chargingis fastest from a low state of charge,90901:03:57,039 --> 01:04:01,320so down in the ten percent upto fifty or sixty. That's how91001:04:01,360 --> 01:04:11,039you optimize your trip by doing,say a fifteen minutes stop for a comfort91101:04:11,079 --> 01:04:15,000break and maybe a snack and stretchyour legs. You know, fifteen minutes91201:04:15,039 --> 01:04:19,159goes by pretty fast. You know, when you're pumping gas, it's you91301:04:19,280 --> 01:04:23,760got to stay with the pump andthen you go into the restroom. So91401:04:23,800 --> 01:04:27,159the whole thing takes ten minutes.So now you're talking fifteen big deal.91501:04:27,920 --> 01:04:30,440And you only do that when you'reon the road. So at home.91601:04:30,480 --> 01:04:39,320It takes me eight seconds to plugin at home, and I plug in91701:04:39,480 --> 01:04:45,880every night because if there's an emergency, I've got eighty percent full tank all91801:04:45,880 --> 01:04:49,639the time. Right important, youknow, easy peasy. So so the91901:04:50,199 --> 01:04:54,199fifteen minutes is at a typical andthat takes you from what charge to what92001:04:54,320 --> 01:04:58,800charge? How much? How manymore miles would that get you? Fifteen92101:04:58,840 --> 01:05:08,559minutes? One hundred and fifty?But then there are different strength levels,92201:05:08,599 --> 01:05:15,079if you will, different kilowatt umsizing of Tesla superchargers. The ones up92301:05:15,079 --> 01:05:19,639here at line Kentata Mall at seventyfive, those are over ten years old,92401:05:20,920 --> 01:05:30,239and the latest one over at RiverThornydale and Orange is two hundred and92501:05:30,280 --> 01:05:38,239fifty kilowatts. That charge is reallyfast. Yeah, and it's rumored that92601:05:38,559 --> 01:05:44,320three fifty is coming next. Soyou can ultimately see, isn't that's the92701:05:44,400 --> 01:05:46,320key, isn't it to get downto where you could maybe refill you know,92801:05:46,719 --> 01:05:49,039a little more than you would takeyou to put in gas in the92901:05:49,119 --> 01:05:55,000car. Yeah, and in thecar right now, it tells me where93001:05:55,039 --> 01:05:58,239I should stop for how long?Right now? Let me ask you,93101:05:59,000 --> 01:06:02,679we're run out of time. It'simportant you go into a dealer, I93201:06:02,719 --> 01:06:08,719must say, you see a Teslaor I mentioned the Mustang. Mock I93301:06:08,800 --> 01:06:13,079like that, and you go intothe dealer, What kind of questions should93401:06:13,079 --> 01:06:20,239you ask? Um? Does themobile charger come with? What's your what's93501:06:20,280 --> 01:06:29,239your warranty? This range? Irange? It will be um an EPA93601:06:29,400 --> 01:06:35,719sticker which will say and a typicalelectric well, Tesla's are all up in93701:06:35,800 --> 01:06:43,760the one hundred and twenty to onehundred and thirty some miles per gallon equivalent.93801:06:43,960 --> 01:06:50,119So the EPA turns um the electricityusage into a number that people can93901:06:50,159 --> 01:06:54,960relate to it like miles per gallon. But it's MPGe. Yeah, I94001:06:55,000 --> 01:07:00,559hear you, so Um, it'sso much. It's so much cheaper using94101:07:00,559 --> 01:07:09,159electricity. And that's why the totalcost of ownership is already better than gasoline94201:07:09,159 --> 01:07:18,559cars. And the price parody ishere now for purchasing ev because help from94301:07:18,599 --> 01:07:27,679the IRA Inflation Reduction Act tax creditsof up to seventy five hundred dollars per94401:07:27,760 --> 01:07:35,000vehicle for battery components and battery packsmade in North America. One question we94501:07:35,079 --> 01:07:40,840hear an awful lot is how canit already strained electric grid handle millions of94601:07:40,920 --> 01:07:46,880electric vehicles. Well, the millionsaren't here yet. And probably something that94701:07:46,920 --> 01:07:56,480most people don't realize is that fromthe nineteen sixties until twenty twenty, the94801:07:57,800 --> 01:08:03,239grid increased by five x and youjust you don't really know about it.94901:08:03,280 --> 01:08:08,400I mean, the utilities are kindof quiet about these things, you know,95001:08:08,440 --> 01:08:11,760they just see what the usage isand they build it out. There.95101:08:11,800 --> 01:08:15,880We have five times electric grid thatwe had forty years ago. Yeah,95201:08:15,920 --> 01:08:24,119forty fifty years ago. The otherthing is that the grid is um95301:08:25,560 --> 01:08:30,079Let's take California for example, inJuly and August, so that's when things95401:08:30,079 --> 01:08:40,359get a little little stressed. Yes, at electricity man peaks at like five95501:08:40,600 --> 01:08:47,880thirty to six pm in the afternoon. At three am to five am,95601:08:47,960 --> 01:08:57,119it's at sixty percent of the peak. So the power companies would be very95701:08:57,119 --> 01:09:00,319happy to sell you electricity, andthey get of you price signals. They95801:09:00,319 --> 01:09:06,119say, you you charge in thewee hours of the morning, and we'll95901:09:06,199 --> 01:09:11,359charge you eight cents. If youcharge in the middle of the afternoon,96001:09:11,520 --> 01:09:15,560or you know, at five thirtypm, we'll charge you a buck.96101:09:15,760 --> 01:09:18,439So people are gonna have to setit alarm almost right for like two am.96201:09:18,520 --> 01:09:21,279Gotta go plug much charger. No, No, it's program. You96301:09:21,399 --> 01:09:27,439leave it plugged in and it doesn'tit doesn't start because it's already a I96401:09:27,439 --> 01:09:31,239mean like like three three three tapsto say okay, come on at this96501:09:31,439 --> 01:09:34,520time. That's cool. But isthat going to change if the majority of96601:09:34,520 --> 01:09:39,800people start doing start charging at twoam? Is are they going to start96701:09:39,880 --> 01:09:45,159charging more money than if that's wheneverybody does it? Um like that would96801:09:45,159 --> 01:09:48,439be in a sense, yeah,well at to see how that works out.96901:09:48,560 --> 01:09:54,560But I mean, the companies areutilities are adding like for example,97001:09:54,680 --> 01:10:03,840Trico put in a big utility scalesolar array and the big Tesla megapacs that97101:10:03,640 --> 01:10:11,239that look like a c tainer.They put everything into one eight by eight97201:10:11,279 --> 01:10:16,359by forty foot long box and callit a megapac. And so Trico has97301:10:16,439 --> 01:10:23,479that, and that'll take care ofthree thousand homes and Saddlebrook and Saddlebrook Ranch97401:10:23,560 --> 01:10:30,520for four hours, So that thathelps them to cover that let's say four97501:10:30,119 --> 01:10:34,399four pm to eight pm window whenthe biggest demand is Is it most of97601:10:34,399 --> 01:10:41,319our electrical grid still on fossil fuelsor is that a misquote? What is97701:10:41,560 --> 01:10:44,640the percentage of how the electric actuallygets its energy? Right? Now.97801:10:45,079 --> 01:10:54,239Um, yet, yes, coalis going down. Um they call it97901:10:54,279 --> 01:10:59,199a combined cycle. Natural gas plantsthey're going up, and then there's a98001:10:59,680 --> 01:11:08,279there's of course some nuclear, whichyou know nuclear is would be a good98101:11:08,279 --> 01:11:12,760thing to do. For example,France is like eighty or ninety percent nuclear.98201:11:13,039 --> 01:11:17,079Yeah, but yes, so alot still comes from fossil fields.98301:11:17,079 --> 01:11:24,359But solar plus wind and storage isgrowing like gangbusters. Is that your favorite98401:11:24,359 --> 01:11:27,640renewable energy or is it nuclear?Or if you had to pick one,98501:11:29,840 --> 01:11:34,520solar plus wind plus storage is cheaper. And I, David, I sent98601:11:34,600 --> 01:11:42,279you those reports from from Lazard andother places that that talked about the LCOE98701:11:42,359 --> 01:11:45,720level ice cost of energy or electricity. I mean, and it says that98801:11:46,359 --> 01:11:51,840solar wind storage is the cheapest today. We don't need any breakthrough technology.98901:11:53,119 --> 01:11:56,560I've got seventeen houses in my neighborhood. Two years ago there were no solar99001:11:56,600 --> 01:11:59,960panels and there were no electric cars. There are now five homes with solar99101:12:00,000 --> 01:12:02,560annals, but there's still an electriccar. So we're gonna get there.99201:12:02,600 --> 01:12:05,479Ron, thank you for taking timeto come in. If you've got a99301:12:05,560 --> 01:12:10,520question for Ron, give us acall here at Greenberg Financial and I'll get99401:12:10,760 --> 01:12:13,479an email to Ron and we'll seePhil communicate with you. I think he99501:12:13,560 --> 01:12:25,359might like to do that. Thankyou, Thank you. Okay, welcome99601:12:25,399 --> 01:12:28,119back to the Money Matters Show.My name is Todd Blick. I'm here99701:12:28,159 --> 01:12:31,439with Dave Sherwood and Dylan Greenberg.Would like to thank Ron Lenz again for99801:12:31,600 --> 01:12:38,359his insightful conversation on solar and ev. It's always great to have um informative99901:12:38,359 --> 01:12:42,439opinions that are different than your own, because that's what life's all about learning,100001:12:42,600 --> 01:12:45,760right, Yeah, we appreciate Ron'stime and coming in. And Ron100101:12:45,760 --> 01:12:48,680and have so much to knowledge tooffer, could have easily been the entire100201:12:48,720 --> 01:12:53,640two hour show. UM with thewith the kind of knowledge he's packing,100301:12:53,920 --> 01:12:57,760what I tried to do is getit down to those sailing and points that100401:12:58,159 --> 01:13:03,119that I'm interested in, which I'mthinking every other person like me is going100501:13:03,199 --> 01:13:06,800to be interested in as well.So we do appreciate him coming in.100601:13:08,000 --> 01:13:11,720This week, the Dow was uppoint three percent, SMP was up point100701:13:11,760 --> 01:13:15,760four, NASDAC was up point one, Russell led the way up one point100801:13:15,800 --> 01:13:19,479six. The small caps really comingback off. They've kind of been quiet100901:13:19,520 --> 01:13:23,439for a while, and so it'sthey're kind of just trying to catch up101001:13:23,439 --> 01:13:27,960to the party. Equal Weighted wasactually above the SMP this week, showing101101:13:28,000 --> 01:13:31,359that the smaller companies in the SMPdid a little better than the bigger ones.101201:13:31,399 --> 01:13:34,479It seems like, because as we'vebeen saying, the year to date,101301:13:35,079 --> 01:13:41,439SMP has been absolutely crushing the equalweighted SMP. The equated is actually101401:13:41,479 --> 01:13:45,680beating the SNP and the Dow andthe NASDAC for the month, the equated101501:13:45,840 --> 01:13:50,560SPI one week into the month.But yeah, week in two days,101601:13:50,640 --> 01:13:54,359Yeah, seven business days. Tradingdays though, if you want to be101701:13:54,359 --> 01:13:58,000tech, seven trading days, right, Yeah, come, I'll be technical.101801:14:00,119 --> 01:14:02,720Is it over our technical analysis now, are we No? What I'll101901:14:02,720 --> 01:14:06,920say what's interesting too, is thatnow we're technically considered in a bull market102001:14:06,960 --> 01:14:11,279because we're twenty percent plus over twentypercent off the lows. Right. It102101:14:11,439 --> 01:14:14,399just feels so weird that we're ina bull market right now. Yeah,102201:14:14,439 --> 01:14:15,960we were talking in the first segment. I think you weren't. Weren't quite102301:14:15,960 --> 01:14:19,199here. He had where we're intwenty twenty. Spring of twenty twenty,102401:14:19,199 --> 01:14:21,880we had a bull market, abear market, and a bull market all102501:14:21,920 --> 01:14:26,079within a period of about six weeks. Yeah, and we had the world's102601:14:26,079 --> 01:14:30,000shortest recession of them in the shortestrecession during that time. Yeah, oh102701:14:30,079 --> 01:14:33,600that was a weird time. Italk a little bit about semi conductors because102801:14:33,600 --> 01:14:39,520semi conductor space has been hot withthe Nvidia leading the way AMD even though102901:14:39,600 --> 01:14:43,720they don't really have an AI shipthey're working on. One stock has been103001:14:43,880 --> 01:14:49,199on fire, the Qualcom who reporteda horrible quarter about thirty days ago.103101:14:49,520 --> 01:14:56,239On fire Intael Intaeil Dylan, youmentioned one of the top Dallas stocks,103201:14:56,680 --> 01:15:00,720even though they haven't done anything rightsince I had black hair and I have103301:15:00,760 --> 01:15:03,840white hair now, so there yougo. The index, the Semiconductor Index103401:15:03,960 --> 01:15:08,840is up fifty percent for the year, which is on track for the best103501:15:09,039 --> 01:15:15,199first six months in history of thatindex, the best first six months ever103601:15:15,319 --> 01:15:20,600driven by AI. Be careful,be careful. Yeah, AI has had103701:15:20,680 --> 01:15:25,479a huge run up. That's justridiculous how fast it's gone up. I103801:15:25,479 --> 01:15:28,079mean that video jumped one hundred pointsout there. It's right, but it's103901:15:28,439 --> 01:15:31,479like a good example. Get Labg t lab. You ever heard of104001:15:31,479 --> 01:15:35,880that? You ever heard a getlab, provider of code deployment software.104101:15:36,479 --> 01:15:42,279They've down twenty two percent for theyear, but jumped thirty percent on Tuesday,104201:15:42,279 --> 01:15:45,199after reporting their losses have narrowed.They're still losing money, Okay,104301:15:45,439 --> 01:15:53,479but it's narrowed, but here's thecapital. But they announced a generative AI104401:15:53,640 --> 01:15:57,760plan. They are working on agenerative AI plan, and that's that's all104501:15:57,800 --> 01:16:00,880it took to get it up.Thirty reminds me of them marijuana boom reminds104601:16:00,920 --> 01:16:06,600me of the bitcoin boom. Butit reminds me of the tulip boom.104701:16:06,640 --> 01:16:11,479And you young guys are looking atme like what talk Actually me, being104801:16:11,479 --> 01:16:14,560in the crypto space, I probablyknow more about the tulips than most people.104901:16:14,840 --> 01:16:17,359You know about the tulip boom.That's that's because literally the best argument105001:16:17,399 --> 01:16:20,800that people have against why bitcoin doesnot have an intrinsic value. Uh,105101:16:21,000 --> 01:16:26,720they Yes, the tulips was inUh. I believe it was the in105201:16:26,840 --> 01:16:30,560Holland, Holland because yeah, thatthe flowers, all those in sixteen thirty105301:16:30,600 --> 01:16:33,079seven, and uh, for somereason, people really wanted to use tulips105401:16:33,119 --> 01:16:38,119as assets and they boomed to thewhich they were combined. They were combined105501:16:38,159 --> 01:16:41,319him to make all kinds of differenthybrigen things. So they needed the bulbs105601:16:41,359 --> 01:16:45,720and the so the bulbs went upeleven hundred percent in one month. People105701:16:45,720 --> 01:16:53,720were creating fake tulips in one month. Yea, And so that obviously couldn't105801:16:53,760 --> 01:17:00,359be sustained and it collapsed. Anotherbig bubble in history was the Mississippi um105901:17:00,600 --> 01:17:03,399Um Shipping Company. I believe thatwas one of the big first big stock106001:17:03,479 --> 01:17:06,640bubbles in a company, and alot of that had to do with,106101:17:06,760 --> 01:17:12,840you know, a lot of justnot true fundamentals that was going to be106201:17:12,880 --> 01:17:18,159sustainable, right. The Tula boomis widely believed to be the first bubble.106301:17:18,319 --> 01:17:21,800That was the first first bubble ever, and then to the point where106401:17:23,079 --> 01:17:27,760even today, speculative bubbles are oftenreferred to as tulipmania. If you hear106501:17:27,840 --> 01:17:30,760somebody talking about tuiletmania, we're we'regetting closed. I remember hearing tulet mania106601:17:30,760 --> 01:17:34,560for the first time in twenty seventeenfor into bitcoin when it was trading at106701:17:34,600 --> 01:17:41,000about eleven thousand dollars. Yeah,yeah, hasn't crashed yet, No,106801:17:42,600 --> 01:17:45,760down about five hundred bucks. Uhthis week. Last week was crushed in106901:17:45,760 --> 01:17:49,680different ways. Yeah, sixty eightthousand, and it crashed down at eighteen107001:17:49,720 --> 01:17:55,479thousand, from eleven thousand and sixtyeight to tand that's a point. You're107101:17:55,479 --> 01:18:00,960still up from eleven thousand, prettyfar, and that leads us into this107201:18:00,039 --> 01:18:05,319crypto stuff. Right. We hadthe SEC suing two large exchanges this week,107301:18:05,399 --> 01:18:10,479Binance being one of them. Binancefor different reasons than coin Base.107401:18:10,960 --> 01:18:15,319Coin Base was also sued. AndCathy Wood, which is the ARC investor107501:18:15,359 --> 01:18:19,399who was very big into technology,she bought the dip. She says,107601:18:19,760 --> 01:18:25,840I she's adding more than twenty milliondollars to her funds on Tuesday as the107701:18:25,880 --> 01:18:30,520shares sank twelve percent that day,she wasn't scared, and you know,107801:18:30,640 --> 01:18:33,279she seems like a pretty smart girl. She probably has a lot of teams107901:18:33,439 --> 01:18:40,239understanding what litigations going on in coinBase. And they SEC already warned coin108001:18:40,279 --> 01:18:42,479Base that they were going to dothis a couple months ago, so it108101:18:42,520 --> 01:18:45,640wasn't a huge it's a big headline, which is why of the stock's going108201:18:45,720 --> 01:18:46,920to be down, but it wasa known thing that was going to be108301:18:46,960 --> 01:18:50,680about. And this is my bigthing with the SEC is coin Base has108401:18:50,720 --> 01:18:55,199reached out to the SEC multiple times. The coin Base has even sued the108501:18:55,439 --> 01:18:59,840SEC for not giving them clear rulesand guidance on how they need to operate108601:18:59,840 --> 01:19:03,000their business, and then SEC comesaround and sues them for not following business108701:19:03,039 --> 01:19:06,920when there's no rules for a coinbase and binance, and it made you108801:19:08,000 --> 01:19:11,119kind of wonder how they coming atIs this the first step in coming after108901:19:11,159 --> 01:19:14,920crypto? And yet Bitcoin just kindof shrugged it off. And this is109001:19:14,960 --> 01:19:18,000why, and that's what people donot understand is even the SEC chairman,109101:19:18,319 --> 01:19:24,159which is Genzler, he says thatbitcoin is a commodity and the ethereum could109201:19:24,159 --> 01:19:28,039also be classified as a commodity,but everything else, although other crypto tokens109301:19:28,079 --> 01:19:31,479will be considered securities. When you'reconsidered a security, you have different regulations,109401:19:31,680 --> 01:19:35,439you have different reporting requirements because you'reconsidered a company. A commodity is109501:19:35,439 --> 01:19:40,119not controlled by any one third party. That's why ethereum is kind of in109601:19:40,119 --> 01:19:42,600a gray area. They don't knowwhether you're going to put in each box.109701:19:42,640 --> 01:19:46,359But bitcoin's clearly a commodity because it'snot controlled by any one group of109801:19:46,399 --> 01:19:50,800people. It's a decentralized network andit's just like anything like gold or anything.109901:19:50,800 --> 01:19:56,039It's just electronic, so you can'tregulate it like a company. And110001:19:56,199 --> 01:20:00,479that is why Bitcoin shrugged it off. People are still going to be able110101:20:00,479 --> 01:20:02,720to buy a bitcoin. If anything, the most interesting thing was on binance110201:20:02,920 --> 01:20:06,159US. The US side of Binance, bitcoin was trading for about a two110301:20:06,159 --> 01:20:11,840thousand dollars premium. Then the actualspot price of bitcoin. Really yeah,110401:20:12,039 --> 01:20:15,920how can there be How can therebe a spot price when it trades twenty110501:20:15,960 --> 01:20:19,920four seven? Well, because theactual exchange itself is running into problems.110601:20:20,239 --> 01:20:24,920It says, if you're worried aboutstranded dollars at your bitcoin exchange because of110701:20:24,960 --> 01:20:29,000the banking crisis, look out forthe bitcoin price on the exchange starts trading110801:20:29,000 --> 01:20:32,680out of premium compared to market averages. It means the exchange dollars balances are110901:20:32,760 --> 01:20:42,119losing purchasing power. So essentially thebalances that exchange are holding in dollar balances111001:20:42,319 --> 01:20:45,000is lowering, and so they arenot able. They have to make their111101:20:45,039 --> 01:20:47,399spread in some way to be ableto stay in business. So I think111201:20:47,439 --> 01:20:50,960they're charging a premium on the bitcoinprice of each purchase to make up for111301:20:51,039 --> 01:20:57,680that. We're seeing the biggest discrepancy. I thought this. We've noticed that111401:20:57,760 --> 01:21:02,079we've talked a lot about the equatedSMP versus the SMP. Last week I111501:21:02,119 --> 01:21:08,760saw a report that it's the biggestunder performance of value versus growth since two111601:21:08,800 --> 01:21:14,920thousand and three, so twenty years, twenty years since value has underperformed growth111701:21:14,960 --> 01:21:19,359to this extent. And the again, the SMP five hundred up twelve percent111801:21:19,439 --> 01:21:26,399year to date, the value ETFsthat that I follow are down down three111901:21:26,439 --> 01:21:30,159to four percent. That's a hugediscrepancy. And again it's because of the112001:21:30,199 --> 01:21:35,439Magnificent seven. You just pointed outthat eight of the eleven SMP five hundred112101:21:35,439 --> 01:21:40,760sectors are down for the year.Yeah, And a lot of the value112201:21:40,800 --> 01:21:44,640companies are utilities and energy and stufflike that with the high dividends, and112301:21:44,760 --> 01:21:47,279healthcare and financials, and they're downat the bottom. Right. So if112401:21:47,279 --> 01:21:50,359you're you for you to be upbig on the year, you're going to112501:21:50,439 --> 01:21:54,960have to be in the Magnificent seven. Yep. I mean if you're not,112601:21:55,039 --> 01:21:57,920then the yeah, And I meanthat comes with the idea of yeah,112701:21:57,960 --> 01:22:00,039you got to be in the Magnificentseven. But if you were the112801:22:00,119 --> 01:22:03,319Magnificent seven last year, you're gettingkilled all of them. So that's like,112901:22:03,399 --> 01:22:08,840and it's the idea of investing iscan you switch your emotions that quickly?113001:22:09,520 --> 01:22:11,720December thirty first, can all ofa sudden you be like, Okay,113101:22:11,960 --> 01:22:15,760now it's time to get aggressive.It's hard for people to change their113201:22:15,880 --> 01:22:18,439emotions that quick and their investment stylethat quick, because you really don't.113301:22:18,479 --> 01:22:24,399You gotta stick to an investment stylethat will be okay through the good times113401:22:24,399 --> 01:22:27,000and the bad times, you know, in the sense of that. But113501:22:27,039 --> 01:22:30,119because it's tough to be in toswitch into that immediately, just can't.113601:22:30,239 --> 01:22:34,199Well. I think what we talkedabout salesforce dot Com being the worst performing113701:22:34,279 --> 01:22:39,960dovestock last year and the best performingdovestock this year. What that is probably113801:22:40,039 --> 01:22:45,840telling you is, if you havea significant exposure to the Magnificent seven,113901:22:45,560 --> 01:22:50,479it may be time to pair someof that back and put it into value.114001:22:51,199 --> 01:22:54,800Yeah, it doesn't hurt to takea profit when these companies have run114101:22:54,880 --> 01:22:58,119up this much so quickly. Itnever hurts to take a profit. Like114201:22:58,159 --> 01:23:00,920that is the whole saying trees donot grow to the sky yep, And114301:23:00,960 --> 01:23:04,319it's not. And we're not sayingsell everything and then go all cash and114401:23:04,359 --> 01:23:06,960then come back and try and timeeverything. It's like, take your profit,114501:23:08,239 --> 01:23:11,239maybe sell half, maybe sell aquarter. We always say it as114601:23:11,319 --> 01:23:14,359you can dollar cost average in whichwe always do with new money. But114701:23:14,399 --> 01:23:17,560you can always also dollar cost averageout right. But we're looking at account.114801:23:17,600 --> 01:23:23,119So let's say an account wants tobe a sixty percent invested. Well,114901:23:23,199 --> 01:23:27,840let me be more specific. Let'ssay account has wants to have fifteen115001:23:27,880 --> 01:23:30,479percent in growth and they have Nvidiain there, and they have Microsoft in115101:23:30,520 --> 01:23:33,520there, and they have Amazon inthere. Now that fifteen percent is twenty115201:23:33,560 --> 01:23:36,960percent. Yep, we're bringing itback to fifteen percent exactly. And you115301:23:36,960 --> 01:23:41,199can break it down even more onthose specific companies. Say you want a115401:23:41,199 --> 01:23:44,279three percent position in Nvidio, that'swhat you max it out at. It's115501:23:44,359 --> 01:23:45,319run up so quickly in the lasttwo months, and now you have a115601:23:45,319 --> 01:23:48,399five percent position. You sell twopercent of it, get you back to115701:23:48,439 --> 01:23:50,760where you were, and now yougot a two percent profit. Right,115801:23:50,760 --> 01:23:55,439then you go into the into thosestocks that have not performed all of the115901:23:55,479 --> 01:23:59,960Procter and Gambles or Johnson anouncers ofand then when that starts to correct,116001:24:00,079 --> 01:24:04,159when that discrepancy corrects itself, andit will ye, it'll either correct it116101:24:04,239 --> 01:24:08,600by the tech stocks coming down tothe value stocks going up one or the116201:24:08,640 --> 01:24:12,439other, but it will correct ifyou have sold some of your tech and116301:24:12,479 --> 01:24:15,119bought value. You're gonna be veryhappy you did that. Yeah, I'd116401:24:15,119 --> 01:24:20,479say so. So. We willbe back after this break. We appreciate116501:24:20,479 --> 01:24:24,319your listening to us on this Sundaymorning. Once again, our thanks to116601:24:24,439 --> 01:24:28,800Ron Lens for his expertise. Andif you want to reach Ron, give116701:24:28,880 --> 01:24:33,920us a call two zero five fourfour four nine o nine. Give us116801:24:33,960 --> 01:24:38,720your question. We'll get that questionto Ron and uh and he'll get you116901:24:38,760 --> 01:24:41,560an answer and we'll shoot that backto you. Again, thanks for him117001:24:41,680 --> 01:24:45,800joining us and thanks for listening.We will be back with the final segment117101:24:45,359 --> 01:24:53,920right after this break. Welcome back. You'll listen to the final segment of117201:24:54,000 --> 01:24:57,199this Money Matters show. I'm DylanGreenberg. I'm here with Dave Sherwood and117301:24:57,199 --> 01:25:00,840Todd Click. We're talking about everythinggoing on the market. Wasn't a crazy117401:25:00,840 --> 01:25:02,479week, not really any news.You kind of thought it was going to117501:25:02,560 --> 01:25:05,960be a pretty quiet week, whichit ended up being. This week coming117601:25:06,039 --> 01:25:10,880up is gonna have a lot morenews, a lot more what ifs coming117701:25:10,960 --> 01:25:13,600up with the CPI. With theFed, are they gonna do that?117801:25:13,800 --> 01:25:17,000It's gonna be interesting what the Fedsays. We don't think they're gonna raise117901:25:17,079 --> 01:25:20,600rates It's gonna be interesting in whatPala says going forward. Are they gonna118001:25:20,600 --> 01:25:24,680posit? Are they gonna posit inJuly as well? Are they gonna raise118101:25:24,760 --> 01:25:28,000it? Are they gonna just kindof wait and see. That's more what118201:25:28,079 --> 01:25:30,279I think is gonna have the marketsare going to react to. I think118301:25:30,279 --> 01:25:33,600going on a lot more on Tuesdayafter the CPI number. YEP, if118401:25:33,640 --> 01:25:36,840it does come in around two pointfive, I can't believe that's what they're118501:25:36,920 --> 01:25:41,000thinking. That's what they're thinking.Cut it in half. That's crazy.118601:25:41,279 --> 01:25:43,840It just seems if they do,though, Yeah, they don't. And118701:25:43,880 --> 01:25:45,319then he comes out and says thatthey need to raise race in July.118801:25:45,439 --> 01:25:48,600That just makes no sense. Nosteps, no steps. You got an118901:25:48,640 --> 01:25:53,000update on the Strategic Petroleum Reserve,mister Glick, Yeah, I do.119001:25:53,159 --> 01:25:56,359You know? Biden said he's gonnamake the greatest trade of all time.119101:25:56,600 --> 01:25:59,520Yeah, yeah, buy that stuff. Let's go. But you didn't close119201:25:59,560 --> 01:26:01,279out the trade when he should have. So we're all waiting, are you119301:26:01,279 --> 01:26:03,800going to close up the trade?We'll have an update on that. The119401:26:03,920 --> 01:26:09,640US Department of Energy said late Fridaythat it's going to award contracts for three119501:26:09,720 --> 01:26:15,880million barrels of crude oil purchases forthe spr to refill it in August.119601:26:15,159 --> 01:26:18,760It's going to average at a seventythree dollars a barrel price. Okay,119701:26:19,199 --> 01:26:24,359Um, interesting fact is it drainedone point nine million barrels last week alone,119801:26:24,840 --> 01:26:28,840and it still has another eight millionbarrels to deplete through the end of119901:26:28,880 --> 01:26:32,079June, which was man mandated byCongress a long time of twenty fifteen.120001:26:32,479 --> 01:26:38,039So we still have eight million barrelsto drain. We drained two million last120101:26:38,079 --> 01:26:43,920week and we're only purchasing three millionin August, so we're still net negative.120201:26:43,960 --> 01:26:47,680We're still draining, but we've finallystarted purchasing, so hopefully we continue120301:26:48,000 --> 01:26:51,560to award more contracts. And it'slike the Energy Secretary said, it's kind120401:26:51,600 --> 01:26:57,039of hard to be buying stuff whenyou're selling stuff, right, So and120501:26:57,119 --> 01:27:01,000that's the that's the conundrum. Thisis the last year that twenty fifteen dictate120601:27:01,079 --> 01:27:04,640from Congress that they saw, wasit twenty five million barrels a year to120701:27:04,680 --> 01:27:10,239help pay for the federal deficit.I mean, when did that happen and120801:27:10,319 --> 01:27:15,279who and why wasn't that news?And it's like, are you serious?120901:27:15,319 --> 01:27:17,560Really? It probably was the debtdefault whatever, and that no one reads.121001:27:17,560 --> 01:27:20,520They just oh, it got pastedschool. Hey, Tesla had a121101:27:20,560 --> 01:27:26,079heck of a week. Huh.The company's website shows that the Model three121201:27:26,359 --> 01:27:30,439and the Model Wi are both eligiblefor that seventy five hundred dollars government credit121301:27:30,520 --> 01:27:35,279that ron talked about. We sawhow important that that credit can be when121401:27:35,359 --> 01:27:41,800China took it away and sales inChina just collapsed. Um. I think121501:27:42,039 --> 01:27:45,439maybe more importantly this is huge.Really news is that they ain't to deal121601:27:45,520 --> 01:27:53,600with Ford and with Chevrolet to allowFord and Chevy customers to use their charging121701:27:53,600 --> 01:27:56,880stations. And I asked Ron,I said, as a Tesla owner,121801:27:56,920 --> 01:28:01,520doesn't that kind of irritate you thatFord and Chivy can now be using your121901:28:01,600 --> 01:28:06,000charging stations? And of course withadapters they probably could have all along.122001:28:06,079 --> 01:28:11,199But um, he said he didn'tthink Elon would leave people out there hanging122101:28:11,239 --> 01:28:15,720in the wind. But uh,isn't it interesting that Ford, GM and122201:28:15,840 --> 01:28:20,279Tesla stock all rallied on that news. They all like that news, and122301:28:20,520 --> 01:28:26,840maybe Tesla's going to become the gasstation of the future. Are they working122401:28:26,920 --> 01:28:30,720with those other Is Tesla working withother companies to build more charging stations.122501:28:30,800 --> 01:28:33,159Is that part of the deal?Well, or are they or is Tesla122601:28:33,239 --> 01:28:38,079just making theirs compatible? They're justmaking their compatible for it's not going to122701:28:38,159 --> 01:28:41,840give Tesla money to build more chargingstations now that they got three times amount122801:28:41,840 --> 01:28:44,199of cars in a sense, Ididn't read that into it, but I122901:28:44,239 --> 01:28:46,600read is that that they're going tobe charging the forward customers. It's like123001:28:46,720 --> 01:28:49,560they're they're going to become the gasstation for Ford and Chivy. That's what123101:28:49,720 --> 01:28:54,119I mean. Yeah, that makessense. I'm just wondering if Ford and123201:28:54,199 --> 01:28:57,640Chevy are gonna help put some moneyinto the charging stations so they could build123301:28:57,640 --> 01:29:00,880more around the country. I thinkif there was nothing in nothing I saw123401:29:01,000 --> 01:29:04,640in that report, Dylan. Butit's still early on, so yeah,123501:29:04,640 --> 01:29:10,800it could be. The Tesla stockwas up eleven straight days, gained over123601:29:10,920 --> 01:29:15,760forty percent within the past what thirtydays? Yeah, that stock was just123701:29:15,880 --> 01:29:17,279on the downfall. I got donelike what one sixty, and now I123801:29:17,359 --> 01:29:20,279was back to two thirty. Yes, that's insane and it's like just a123901:29:20,279 --> 01:29:26,840matter of weeks. Yes, didyou see then what Amazon's doing surprime subscribers?124001:29:27,479 --> 01:29:32,319Pretty significant, pretty significant perk.Sorry about free cell phone? Yeah,124101:29:32,359 --> 01:29:36,119I thought I saw a report thatthat's it's it's kind of weird how124201:29:36,279 --> 01:29:42,479it's brand new. And that's whyuh, Dish and all Sky did really124301:29:42,479 --> 01:29:45,279well, not last week, theweek before, because this news came out124401:29:45,279 --> 01:29:47,199with it, they're in talks her. I mean, even if something comes124501:29:47,199 --> 01:29:49,960to fruition, it's not going tobe until next year. But they've been124601:29:49,960 --> 01:29:55,159talking to the companies like Dish andAT and T and T Mobile big for124701:29:55,199 --> 01:29:57,760the last few months about doing this. Well, why would you let I124801:29:57,800 --> 01:30:00,640saw a great line says, whywould you let the fox the henhouse?124901:30:00,720 --> 01:30:03,119Yeah? I know, if you'reif you're the T, if you're the125001:30:03,119 --> 01:30:06,279community, you know, a Tand T Verizon, why would you lease125101:30:06,319 --> 01:30:13,479out your UM towers to Amazon?Unless you believe Amazon can bring you a125201:30:13,520 --> 01:30:15,079lot more customers. They're eventually justgonna take it all, you know what125301:30:15,119 --> 01:30:17,119I mean? Like, why wouldyou like? Their growth is zero?125401:30:17,520 --> 01:30:23,239Right, and you know Verizon's dividendwent to a forty year high because of125501:30:23,279 --> 01:30:26,760it. And it's to me,it just doesn't make sense why Verizon would125601:30:27,479 --> 01:30:31,880or any of these Dish makes sensebecause there are stocks went down about eight125701:30:31,880 --> 01:30:36,319percent that day when that news brokeyeah, Dish and t Mobile went up125801:30:36,319 --> 01:30:40,279about eight percent. So Dish Ithink is the and they're and they're saying125901:30:40,359 --> 01:30:44,039Dish is the main partner that they'relooking for. So I don't know.126001:30:44,159 --> 01:30:47,119I think it's gonna hurt Verizon isif you make a deal that they have126101:30:47,159 --> 01:30:51,720to get the contract. Yea team, and who knows. Maybe Amazon's working126201:30:51,720 --> 01:30:54,880on in their own phone, likethe Google phone, it's gonna be the126301:30:54,880 --> 01:30:57,520Amazon phone, and that's what they'reworking on in the back offices too.126401:30:57,680 --> 01:31:00,880So they just get these towers leasedand an event at release that the new126501:31:00,880 --> 01:31:05,000phone and it's all Amazon. Ikind of got that feeling that they're looking126601:31:05,079 --> 01:31:10,840for to have an Amazon wireless service, right, Yeah, exactly. They're126701:31:10,840 --> 01:31:14,439trying to partner with somebody to makethis happen. Yeah, but I'm saying126801:31:14,479 --> 01:31:16,159like, yeah, I think theyare, but you all yeah exactly,126901:31:16,159 --> 01:31:19,039like Todd saying too, you haveto lease those towers out. But they're127001:31:19,079 --> 01:31:24,079making a lot make new ones.No, you're making new towers. Well,127101:31:24,119 --> 01:31:26,520there's not a lot of new,but they are no location wise,127201:31:26,520 --> 01:31:29,920there's not. So they've been acceleratingthe building of them. That's what Crowncastle127301:31:29,960 --> 01:31:32,960does and that's what American tower do. They they're building they're smaller now,127401:31:33,000 --> 01:31:35,920they're smaller towers, and this isfor five G and they've been doing it127501:31:35,960 --> 01:31:39,800for the last five a few yearssince five g's been announced. You have127601:31:39,880 --> 01:31:42,760to build I forgot the exact number, but you got to build a ton127701:31:42,760 --> 01:31:45,560of them in a city for fiveG to work efficiently right right now,127801:31:45,600 --> 01:31:48,840so they can build these and thennew companies coming and lease them. So127901:31:48,880 --> 01:31:51,680maybe that's what Amazon is trying toget. Well, five GS a lot128001:31:51,720 --> 01:31:58,199different than four G because you needto be like indirect almost eight of it128101:31:58,279 --> 01:32:00,479for really, and that's why theI got to build a lot of these128201:32:00,479 --> 01:32:02,479towers, but they're smaller towers,like I mean Mike, which is not128301:32:02,520 --> 01:32:05,600as good for the smaller towns.And well, and then they're running into128401:32:05,640 --> 01:32:09,880this. The issues they're running intois that people are scared, like the128501:32:09,920 --> 01:32:12,560wavelengths are going to go through themand stuff like that. So that's why128601:32:12,600 --> 01:32:15,520they're running into issues city councils andall that. But in order for five128701:32:15,600 --> 01:32:18,319D to work officially, they haveto keep building these and maybe that's what128801:32:18,359 --> 01:32:21,439Amazon is trying to get in on, is these new towers that are going128901:32:21,479 --> 01:32:26,920up. They're trying to lease moreso than a etenz in Verizon. Cool,129001:32:27,479 --> 01:32:30,039you guys, you're both gen Zguys, right, No, No,129101:32:30,039 --> 01:32:32,720he's millennial late nineties. He's actuallylike in between millennial and gen Z.129201:32:32,800 --> 01:32:35,520He does you're born You're born inthe last mid nineties, right,129301:32:35,600 --> 01:32:40,680nine year? What do youse?He technically does not think I'm a millennial.129401:32:41,119 --> 01:32:43,920I'm like on the yally decide,I've looked this up. You can129501:32:44,000 --> 01:32:47,560decide, so really you can likehe's a He's the one year that's in129601:32:47,600 --> 01:32:51,039between, so I don't have tobe a baby talking about now I'm ninety129701:32:51,039 --> 01:32:56,479four. That's what I am.Is closer to millennial're talking about the millennials.129801:32:56,479 --> 01:32:58,520They had a report on the genZ. I thought you guys were129901:32:58,520 --> 01:33:00,760both gen Z. Probably on thecusp. I'm on the cusp. But130001:33:00,840 --> 01:33:09,359I guess most common investment for genZ ears is bitcoin or Tesla. Yeah,130101:33:09,680 --> 01:33:13,800Tesla, I guarantee you is rightthere. I look at and I130201:33:13,840 --> 01:33:16,319thought that makes sense. Actually,if you're young, you've got time,130301:33:16,760 --> 01:33:20,239Um, you want to you wantedto grow as fast as possible. It130401:33:20,319 --> 01:33:25,600makes a lot of sense. Butalso it just our entire things technology we130501:33:25,720 --> 01:33:29,479do Zel, we do MO,so we can actually understand an idea of130601:33:29,520 --> 01:33:33,159currency being digital, where a lotof the older people that currency is physical.130701:33:33,199 --> 01:33:35,600It's like, okay, that's becauseit's always been that way, which130801:33:35,640 --> 01:33:39,279is fine. But paper was physicaltoo. But now we have the word130901:33:39,319 --> 01:33:43,359processors. So things evolve and wehave to realize that they do that.131001:33:43,600 --> 01:33:46,039And I think gen zs are justmore Yeah, it's not so crazy to131101:33:46,159 --> 01:33:49,800the gen z Yeah, of havinga digital currency. Home prectures may have131201:33:50,199 --> 01:33:57,680stopped going down may uh the caseShiller, which this monthly housing report reports131301:33:57,680 --> 01:34:03,279a small increase in February and grewin March, and they're suggesting the decline131401:34:03,319 --> 01:34:08,600in home prices that begin in Juneof twenty two maybe coming to an end.131501:34:09,359 --> 01:34:13,760And I would think to myself,well, that's the shortest smallest decline131601:34:14,319 --> 01:34:15,760ever. That'd be pretty cool,I would. I'd be happy if I131701:34:15,840 --> 01:34:18,920hit that right. Yes, Igot mine on the down on the downtrend.131801:34:19,159 --> 01:34:23,800Yeah, I know, it isinteresting to think we really, from131901:34:23,840 --> 01:34:26,680a CPI point of view, thoughtthere'd be a lot more downside in real132001:34:26,760 --> 01:34:30,600estate than there has been. AndTodd, you've pointed out before that it's132101:34:30,640 --> 01:34:31,880because there's just no inventory. Well, it's part of it too. I132201:34:31,880 --> 01:34:34,520mean, like like if inflation goesdown to two and a half percent and132301:34:34,560 --> 01:34:39,079the Fed starts raising rates now andthey don't need to raise them again,132401:34:39,319 --> 01:34:43,079they're gonna start lowering them sooner thanwe think. So then that's going to132501:34:43,239 --> 01:34:46,560increase housing prices as rates drop,But it also is going to increase inventory,132601:34:46,800 --> 01:34:50,920which could just level prices too,because that's why we are seeing elevated132701:34:50,920 --> 01:34:55,439prices continues to be sustained. Ifthere's no inventory. The minute rates go132801:34:55,520 --> 01:34:59,560down, that's open to what's goingto happen is going to be these national132901:34:59,600 --> 01:35:01,279home build These are gonna have aton of inventory that they've been building that133001:35:01,319 --> 01:35:03,840people are just dropping out of thecontracts. They're gonna have these open,133101:35:03,880 --> 01:35:06,640so they're gonna be trying to sellthose when that time comes. Yeah,133201:35:06,680 --> 01:35:11,159I mean, I think they're they'reactually on the other side of that now133301:35:11,359 --> 01:35:15,760they're able to they don't have toomany locked up anymore that they're waiting on.133401:35:15,039 --> 01:35:18,720A lot of them are buying downinterest rates to make it down a133501:35:18,720 --> 01:35:24,560lot cheaper for them, So that'show the builder is actually buying down so133601:35:24,640 --> 01:35:27,960the builder builders say, hey,we have five percent like like you did133701:35:27,960 --> 01:35:30,520with cars, right, five percentfinance teams this week only you know,133801:35:30,680 --> 01:35:34,279yeah, that's what they're doing thatto make it more And one of the133901:35:34,279 --> 01:35:40,920first rental um rental out like youthat build to rent is coming to two134001:35:40,920 --> 01:35:44,079Sonnets. It's just coming. Butthere is there. There are a couple134101:35:44,079 --> 01:35:47,680of those neighborhoods already here on SabinoCanyon Road. There's a couple of builder134201:35:47,760 --> 01:35:51,119rent hoods over there. My wifepointed out when I told her the first134301:35:51,119 --> 01:35:55,479one is coming, she should knowit's not it's I think it's single family134401:35:55,520 --> 01:36:00,439residents. Is that these are singlefamily units over there? Um maybe pointed134501:36:00,439 --> 01:36:01,800out to me that I was wrong, and which is what I got it134601:36:01,840 --> 01:36:04,520from Sava. Hey, you know, maybe got all my wife of forty134701:36:04,520 --> 01:36:10,880one years, she knows more thanSaba. We appreciate you joining us.134801:36:10,880 --> 01:36:14,239We're coming to the end of theshow once again, our thanks to Ron134901:36:14,319 --> 01:36:16,720Lens. He brings a lot tothe table. If you'd like to ask135001:36:16,840 --> 01:36:20,439Ron a question, give us acall. We can get that question to135101:36:20,600 --> 01:36:24,760him and he can He'll give youan answer and we'll shoot it back to135201:36:24,840 --> 01:36:28,720you. What we all want tobe here is happy, yes, and135301:36:28,760 --> 01:36:31,800of course we all strive to behealthy. But at the end of the135401:36:31,840 --> 01:36:36,600day is Greenberg Financial. We're tryingto be profitable. Next week