Stocks Return to Winning Streak, Will Inflation Stop It?

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Good morning, everybody. This is
Dean Greenberry. This is the Money Matter

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Show, and it is Sunday morning, eight o'clock. For the next two

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hours, we're gonna bring you the
Money Matter Show and talk to you about

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what's going on, not only in
the markets, but in the country,

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in the world, and how everything's
being affected. And right now we'll get

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in there. We're getting there.
We're getting close to new hives again,

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getting close to new hives. The
S and P five hundred climbed almost two

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percent this week. The NASA can
only climb one percent, and the equal

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Weight to SMP and the Dow both
climbed a little over two percent also,

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So for the year, the SMP
is up almost nine, the Dow's up

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four, the nasdak's up about nine, and the equal weight that is up

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five percent, about half of what
the S and P is doing. So

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here's the deal. Is this a
rally that's sustainable, Well, this is

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a rally that's going to be pulled
back. I think we're gonna trade I

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do. I think we can get
a little bit higher, maybe not this

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week coming up, but probably between
now and the end of June. I

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think we'll have that one more push
up. If we get through there,

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you know, you're looking at fifty
three hundred, maybe up to fifty four

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hundred before we still out. And
everybody takes a wait and see attitude going

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into August, September, October,
and November, because we all know it's

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going to be a very, very
important election. And there's a lot on

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the table. And I'm not even
talking about your socially, what's on the

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table. I'm talking about economically,
what's on the table. I'm talking about

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foreign policy, what's on the table
I'm talking about there are extreme opposites on

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just about everything, on how to
handle everything. The ones that are gonna

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have problems of the independence. There's
not one thing they like about really what

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Biden's doing so much, but it's
hard for them to pull the lever for

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Trump, and they go back and
forth with that. But I see it

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things secretly, a lot of those
independents secretly will be voting for Trump because

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at the end of the day,
it comes down to the economy, it

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comes down to the border, it
comes down to foreign policy, and it

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comes down to energy. I do
believe this. The vice president, that

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that running mate that Trump will pick
is very very important because I think a

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lot of people look at both presidents, both people running, saying it's a

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good chance one of them might not
make it through the four years. Who

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would be president next Kamala Harris?
I mean, I think she would maybe

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have a ten to fifteen maybe twenty
percent favorable versus sixty seventy percent not favorable,

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and a bunch of people going,
who the hell is she? You

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know, at the end of the
day, I think it's going to be

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important. He's going to have to
bring in someone presidential just in case something

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happens along the way. I mean, it's easy to say nothing's gonna happen

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because there's very few people. Ever, There's never been another person running for

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president that has been going through what
President Trump is going through, between all

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the lives when he first got in, through all the all the all the

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impeachment trials, all the all the
stuff they pick up. Now he's thrown

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back and all these these trials and
tribulations of stuff he's done that other people

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done. But he has to go
ahead and testify, uh in court.

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He has to be brought up in
court to be able to move on when

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not one other even person even gets
investigated. I mean, the just common

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sense tells you there's something really wrong. I mean, think of all the

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stuff that Hillary Clinton did that was
federally against the law. Think about her

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server in her in her home,
in some closet in the bathroom, got

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away with it, all all the
stuff they find them. Biden, then

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you just let them get away with
it at all. It's not like they

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even have the same exact thing happened. Trump had had files. Biden had

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files. Trump get brought up and
and and and tried in court. Biden

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doesn't even sniff the day of something
doing illegal. Lots of problems. Now,

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let's talk economically economically, It's real
simple. Biden has messed up her

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economy. I do not care if
some one person tells me inflation is down,

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unemployment is down, really because even
right now they're trying to get inflation

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to three percent, it was six
seven percent, and we all know prices

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are probably twenty five to thirty percent
higher from when he just came in four

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years ago. And they want to
blame it on the pandemic, and they

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want to blame it on Trump.
Common sense says, you're wrong on that.

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They should have had an explosive economy, not just one that is just

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moving forward. Of course, unemployment
is going to be down because everybody was

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not working, and then people went
back to work, and then you keep

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paying people not to work. People
get checks, not the work. These

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things are very important. But the
most important thing, and we're going to

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talk about it a little later,
it's taxes. Trump put in a whole

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tax plan with tax breaks for small
businesses across the board, or the or

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the everybody's income levels that sunsets next
year. So not only people that have

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estates are gonna have to worry about
it, not only people that have small

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businesses, and not only people that
are making you know, over two hundred

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and some one thousand, everybody's tax
bracket is going to go up. The

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twenty percent tax break that they give
to the businesses, small businesses that goes

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away, you know, the deduction. There's a lot of stuff that's going

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to go away that's going to hurt. The biggest one is if they bring

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down the the debt tax. Okay, the estate tax that has gone up

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to about twelve million and goes all
the way back down to they're talking even

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one million, one million. How
does that make sense. With inflation doing

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what it's doing, people make get
more money, so we're going to tax

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some more. He might stand up
there, move his lips and sell you,

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I'm not going to tax anybody that's
making less than four hundred thousand dollars.

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But all these things are going to
go ahead and tax you. Inflation

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taxes you. Our economy cannot afford
what we're doing. That's inflationary. Inflation's

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going to stay there. Understand this, If we get inflation down to three

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percent in five years, when basically
the next president is done in five years,

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with three percent, everything is going
to be fifteen percent higher on the

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average. At three percent, fifteen
percent higher, we can't live with that.

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That means if you have a five
hundred thousand dollars house, buy that

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house is going to cost you about
five seventy five six hundred. But to

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build the cost of everything is going
to go up, and your salary,

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your wages aren't going to go up
to stay in line. Most salaries,

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most wages have gone up now,
not going to go up that much later

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on. All right, this show
is brought to you the moneymun The show

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is brought to you by Greenberg Financial
Group. Greenberg Financial Group is both of

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both the registered investment advisory and a
broker dealer. They're registered with the SEC.

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Members of Fenroom, members of SIPIK. We talk about different products,

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different ideas, different strategies. On
this show, everything has risk. You

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have to understand risk. We emphasize
risk. Everyone that comes see us,

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we talk about risk. We got
to find out what risk tolerances. Risk

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is quite fluid. When the markets
go down and people lose money, their

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risk tolerance goes way down. When
the markets go up, everybody wants to

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make more money and their risk tolerance
goes real hogey. I can't tell you

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how many people that are very conservative. When markets are going higher, like

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twenty twenty one, they want to
get into the market. They want to

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put more in. Twenty twenty two
comes and they sell everything out. They

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cannot. It's it's you have to
understand. Risk is emotional too. It's

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emotional. It's pretty much all emotional. Yes, dollar wise, economic wise,

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you can see, yeah, I
can handle this much risk. I

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can't handle this. I need to
make sure I can make this much income

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so I can't lose this much.
Yes, but at the end of the

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day, the way you feel is
what creates risk tolerance. And right now

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we're living in a world the people
a little nervous, scared. We got

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wars going on all over the place, Ukraine, Middle East. We have

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inflation they keep saying coming down,
but it's still rising at four percent.

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And that's just on the government numbers. We all know. The fact is

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you look at your grocery bill,
it's huge. You go out to a

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restaurant, I mean, how much
more are we paying than we used to?

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That's awfully from wages, wage increase. Wage inflation does not come the

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other way. So once you start
paying people more money, it's not reversing.

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Of course, the goods could come
down. That's supplying demand. Wages

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are not gonna come down at best, they're gonna slow down. So services,

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hospitality, those prices are going up. Things you pay for are per

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hour are going to go higher,
so people can spend for other things.

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That's what's going to happen. And
it is happening. It's not even going

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to It is happening. A country
is in a mess. Very few people

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will tell you how much it's costing
us for every illegal alien that comes across

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that border. How much are we
paying for these people to house them,

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feed them, and they demands their
demands are unbelievable, which scratches my head

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because where did they come from saying
they need much better life? They come

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here and they complain about whatever life
they have. They want more for free,

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because they've got to believe they're not
living in apartments, hotel rooms.

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I gotta believe they're not getting three
square meals a day. Otherwise, why

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would they leave their country that they
loved. They leave because they're scared.

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They're scared it's all going to be
taken away to come to the country that

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they think is going to give them
everything free, and it's costing us a

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lot of money. The Democrats are
in Biden, and the Democrats are running

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on a few different things for this
election. We know that they want to

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make abortion a very decisive subject matter. We're not going to talk about that.

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We know the Republicans better be smart
about it. That's all I'm going

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to say. Climate change, Remember
it used to be called global warming,

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but then it's not just warming,
which they always claim. The ice capsule

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melting and we're going to be flooded
away. They changed it to climate change

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because some days it's very cold,
some days it's hot, and they use

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that as a way to drive a
wedge between people that have common sense and

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who are afraid of everything. Now, of course, we want clean water,

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clean air, we like emissions controls, we keep moving in the right

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direction. The more people we have, the more we have to do things.

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But somebody that's a realist and common
sense also understands this has been going

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on for billions of years, for
millions of years, the change over in

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the earth, and when we had
the ice age, and then the and

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then the melting and the and the
floods that were supposed to happen, and

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all these other things that have happened
thousands and thousands and millions of years ago,

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there weren't people creating what they're creating
today. So why are they talking

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about today being such a problem when
it wasn't then, And no scientists can

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go ahead and say this isn't part
of an evolution. They could talk about

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while it's getting a little hotter and
hotter and everyone's going to burn up,

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you know, I don't know.
I remember being pretty hot growing up as

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a kid. I remember days that
in New York it was over one hundred

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degrees and man it was it was
sweltering. You basically just sat in the

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pool. Well, you sat in
the room with the one air condition that

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you had in the wall, in
the in the uh in the world window

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because it was hot. Yes,
we want clean stuff, but it's if

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you look at it on a macro
level, you need to get all the

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countries involved, including India and China, and Russia and Middle East and and

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and and North Korea. Get on
the board with all these other countries that

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are doing something. Yes we want
to do. Stuffer going and say we're

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going to do all electric vehicles.
You see them. We're getting the pushback

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from the country, from the all
the motor companies. Now it's not gonna

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happen because the infrastructure is in there
to give everyone the electricity, and how

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are we going to afford electricity and
how are we going to get electricity as

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we all talk about, if that's
all that we have is just doing everything

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electric right now, Fossil fuel is
what drives electric electricity. We also know

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that these precious metals that you have
to mind for around the world and including

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in the United States, lithium and
all that cobalt. That's a mess,

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and that creates problem other problems that
you have. We have an abundance of

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oil, an abundance of oil.
We have incredible new technology and AI artificial

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intelligence that can make things better and
better and better. Why don't we go

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down that road and try to use
a little bit of everything so we don't

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run out of anything. Stop making
every regulation about climate change. Because when

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you say this is the worst hurricane
since nineteen twenty eight, well, in

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nineteen twenty eight there was a horrible
hurricane and you probably thought there was a

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problem. Back there were climate change. So now one hundred and some almost

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one hundred years later we get something
it's the same thing. That's what doesn't

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make sense to me. Yes,
do I think that some of the things

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are happening or harsher than they have
been. Yes, But I also think

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the snowfall in the seventies in New
York was the worst snowfall that we ever

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saw. No one said, oh
my god, this is climate change,

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and now they have a snowfall there
they'll say, oh, this is because

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of climate change. Let's be realistic
about climate. Things change, and as

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we understand the changes, we can
use it to fix it and make it

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better and do the things we need
to do, but we don't have to

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make every single thing we do and
put money to it's because of climate change.

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To me, that whole rhetoric is
like the teachers' unions telling us what

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they have to do to make our
kids better educated, when really what's going

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on our kids are not better educated, that they're using the union structure to

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put pressure on the people to get
more money. I don't know if you

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heard about what was going on with
the Chicago Teachers Union, but this absolutely

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blows my mind of how the leftist
thinking and what's destroying us if we let

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them in control. They want over
fifty billion dollars the Chicago Teachers Union and

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the negotiations that are coming up.
They want to give everybody a nine percent

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raise for the next five years.
Nine percent raise for the next five years,

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and they're already probably some of the
highest paid teachers in the country.

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That means the average salary would be
about one hundred and forty five thousand dollars

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per teacher, plus bonuses for teachers
that have more than what they should have

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in their classrooms. I have no
problems with teachers getting more money. I

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think they're underpaid, especially in Tucson. I do think they're underpaid. But

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I also think if you're going to
pay teachers more, there's no tenure at

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colleges, is no tenure they need
to perform. When twenty five percent of

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the people are not proficient enough in
the normal classes, you need those teachers

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or schools are failing. If you
don't do a good job as a teacher,

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you do not have a job,
which means you do not get a

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raise. Unions try to protect that
where people don't have to do anything and

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continue to get paid and to continue
to get raises, and they go ahead

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and protect It's very simple. If
you are an employee and you do not

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do your job up to what you're
expected, somebody's gonna come in and take

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your job. They want fifty billion
dollars. They want to give raised,

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They want to give every teacher the
ability to have fully paid abortions that are

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part of the Teachers' union in Chicago. Is that fair? What about the

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guys? What are they going to
get? It's wrong. They want money

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for LGBTQ, and they want money
for better conditions for immigrants, and do

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immigrant reform. What does that have
to do with teaching your kids in a

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classroom how to read, write and
learn. Nothing. I have no problems

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paying teaching a little bit more realistically, but also put them on notice that

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you need to teach these kids how
to read and write and spell and be

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better students. And of course you
can have it where it's graded at the

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different areas, because you all know
there's going to be some kid they can't

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do it. Okay, start reimagining
how to educate them. While I'm talking

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about this, I do want to
put something out there that I think is

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very positive in schools here in Tucson. One school in particular. I've just

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come to learn that Tucson High School, the largest public high school in Tucson.

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Tucson High School has put together a
partnership with Pima College. The kids

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that are enrolling in this semester twenty
four to twenty five, that are going

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to come in as freshmen, if
they go through this curriculum for four years

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and pass and it's rigorous, they
will leave high school with not only a

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high school diploma, they will leave
the school with an associate's degree in general

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education. They will have an associate's
degree in general education, which means they

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can go to any States school in
Arizona which is nau ASU or u of

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A with their gene ed classes already
done, which does what it means the

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overall course for going for four years
of college will be a hell of a

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lot less because you don't have to
take all those courses. You don't have

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to go for four years. Kudos
to Pima and Tucson High and putting this

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together as I understand it as an
application because and the thirty that they pick

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for the program will have all the
help that they need to be able to

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succeed tremendously. Its program is going
to be open to about one hundred and

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fifty students, which means one hundred
and twenty of them are going to have

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to be self motivated and probably get
less help until they can figure out how

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this all works. But kudos to
Tucson High. Kudos to the principal there

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and the administration there in taking this
on with Pima College. I think it's

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unbelievably smart outside the box, and
I think it's a great thing for students

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and parents that want their children to
be able to be educated and to cut

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the cost of college down because if
you get through here, I promise you

255
00:23:17.720 --> 00:23:19.960
you're going to probably you get good
care grades, You're going to be able

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to apply for scholarships to the in
state schools that will give you the ability

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to pretty much get through school without
not paying too much. There's a way

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00:23:30.039 --> 00:23:34.759
to get college free. And that's
not by God damn President paying off everyone's

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00:23:34.839 --> 00:23:41.799
loan. It's by doing the work
that you do. Because inequality is one

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of the things that they are big
on, is this democratic thing, and

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that's the one thing I'm against because
inequality is not for everybody. You have

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00:23:48.960 --> 00:23:53.839
inequality in personalities. You have inequality
in people that have drive that want to

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earn it. There's so many people
that want to be giving stuff. There's

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people that want to earn it.
Those that earn it should not be old.

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They got to get the same things
by the people that don't want to

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do it. Not everybody can own
a business, Not everybody knows how to

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take a risk. Not everybody is
equal. And when we learned everybody is

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an equal, then we are going
to be a better society and people will

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understand where they fit and they can
succeed in how they can fit and if

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they have an opportunity, take advantage
of it. We'll be back. We

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got a couple of another hour and
a half of the money out of show.

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00:24:26.599 --> 00:24:29.960
Thank you so much for listening.
All right, welcome back. Everybody

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is the money out of show.
We got Dave and Sebastian and Toddy.

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Dylan will be joining us in not
too long a period. Where do you

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go over it's your favorite thing?
He went to a wedding. It was

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nice. I hope you had fun
because you weren't looking forward to it.

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Because my seven year old grandson was
put in a tuxedo and they had him

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00:24:53.119 --> 00:25:00.319
come in with the sunglasses and a
briefcase and security. Kids. It's cool.

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00:25:00.640 --> 00:25:07.319
It was worth a drift. California
is a different, a different had

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I knew I was at a California
because there was a male bride that used

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to be a girl. This is
a guy who was a wow, yeah,

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got it different California, California.
I don't know if I've ever been

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00:25:26.799 --> 00:25:32.000
a wedding with a girls. By
now, I've been the weddings that the

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maid of honor was like somebody close
to them or something which was a guy.

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Yeah, just they had two people, you know, two friends or

286
00:25:37.880 --> 00:25:41.960
something like that. I was a
friend of the bride. How many were

287
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how many were in there? Probably? Yes, that's that's it's like,

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00:25:48.599 --> 00:25:56.440
it's weird. It was. It
was What do you say it was?

289
00:25:56.400 --> 00:26:02.480
How do you know? No,
that's mean anything today? I know that

290
00:26:02.480 --> 00:26:07.319
I would have a hard time.
It wasn't an address though. Okay,

291
00:26:07.440 --> 00:26:11.279
all right, all right, let's
move on. The market's made another nice

292
00:26:11.279 --> 00:26:15.200
move this week. Biggest story of
the week, I think you all time

293
00:26:15.400 --> 00:26:22.319
high. Everyone was in the high
sixties. We definitely in the seventies for

294
00:26:22.359 --> 00:26:25.519
a long time because we kept talking
about buying it. A lot of cancers

295
00:26:25.519 --> 00:26:30.119
to buy it in the seventies.
Uh, you hit a new all time

296
00:26:30.200 --> 00:26:34.279
line and met all these silly protests
going around at least of the UVA campus.

297
00:26:34.279 --> 00:26:40.160
I keep seeing people posting pictures of
sign stop raytheon stop the missile stop

298
00:26:40.240 --> 00:26:44.400
this. Well, that's not ything. They just make them right, that's

299
00:26:42.839 --> 00:26:47.880
the whole and we're not gonna go
down the rabbit hole. But the whole

300
00:26:47.960 --> 00:26:52.920
defund thing is just ridiculous. Because
the modern portfolio managers don't use individual stocks

301
00:26:52.960 --> 00:26:56.440
for the most part, They use
E T s and mutual funds. So

302
00:26:56.480 --> 00:27:03.000
if you're going to die yourself anything, it isn't gonna happen. It's just

303
00:27:03.039 --> 00:27:06.920
not gonna happen. So what they're
asking for something that we don't get me

304
00:27:07.000 --> 00:27:15.559
going on this whole thing over there, I'll tell you the longest streak this

305
00:27:15.680 --> 00:27:26.759
year, Yeah, I think before
down three cents on we started talking about

306
00:27:26.759 --> 00:27:32.960
at the beginning of the year,
right, but don't I would not be

307
00:27:33.119 --> 00:27:37.839
surprised if you had one two percent
pull back here and then then then go

308
00:27:37.920 --> 00:27:41.279
back up into the uh into June. It gets tough. Where's the money

309
00:27:41.319 --> 00:27:45.039
come from? I always talk about
this, where's the new money? We

310
00:27:45.079 --> 00:27:47.920
get to these places, we have
a nice push up and then it kind

311
00:27:47.960 --> 00:27:51.680
of like kind of stalls out,
and this is action usually okay, it

312
00:27:51.799 --> 00:27:53.799
rotates around for a week. We
could have two weeks down, a little

313
00:27:53.799 --> 00:27:56.880
bit, up, a little bit, it comes down and goes back up,

314
00:27:56.160 --> 00:28:00.000
moves up a little higher, and
then it just kind of sits there

315
00:28:00.839 --> 00:28:03.599
and then the next move is usually
down, and then the next move after

316
00:28:03.640 --> 00:28:07.079
that. So it's important to see
how far you come down because if it

317
00:28:07.079 --> 00:28:11.559
makes a high and low, then
where we work. Because we got down

318
00:28:11.599 --> 00:28:15.119
to what day before five just under
five thousand, right, just under five

319
00:28:15.160 --> 00:28:18.839
thousand. Yeah, I think we
hit forty nine seventy or something like that.

320
00:28:19.400 --> 00:28:23.480
Yeah, right, So as long
as we stay above that on the

321
00:28:23.519 --> 00:28:26.640
comeback down, and we go back
up and make a new high, then

322
00:28:26.640 --> 00:28:30.720
and I think we can keep running. But you and I both know after

323
00:28:30.839 --> 00:28:33.200
June you had August or ten,
October, November, and it's an election

324
00:28:33.319 --> 00:28:38.359
year right right now, and they
didn't miss a few dight. But I

325
00:28:38.359 --> 00:28:41.960
think the highest target on the street
right now is fifty six something like that,

326
00:28:42.000 --> 00:28:48.640
which is what about where we are
right now? Yeah, and it

327
00:28:48.640 --> 00:28:51.640
doesn't seem like a much from here, but it would be a lot more

328
00:28:51.680 --> 00:28:53.400
if we dropped and then went up
there, you know what I mean.

329
00:28:53.480 --> 00:28:56.000
And that's how that's how you that's
how you make the money, you know

330
00:28:56.000 --> 00:28:59.599
what I mean. I mean,
common sense tells you right now take some

331
00:28:59.599 --> 00:29:03.119
money off the table. I think
if you kind of go back to it

332
00:29:03.200 --> 00:29:08.599
and look at the economy, we
have an economy that is flowing where we've

333
00:29:08.640 --> 00:29:12.599
gotten a lot of weak guidance this
week game from corporate reports, right,

334
00:29:12.920 --> 00:29:19.000
we had the highest first time claims
for unemployment since last August. Consumer drop

335
00:29:19.359 --> 00:29:25.559
dramatically on Friday. Uh, we
are in a slow flowing economy. Is

336
00:29:25.599 --> 00:29:30.920
it a slowing to the fun where
it's problematic? No? And actually we

337
00:29:30.000 --> 00:29:33.359
wanted to see a slowing economy because
I don't take the pressure off interest rate,

338
00:29:34.079 --> 00:29:37.640
right, and that's what people will
think. But if we don't have

339
00:29:37.680 --> 00:29:41.480
inflation come down, Daves And that's
the one where no one wants to talk

340
00:29:41.480 --> 00:29:48.279
about right now. Stagflation you know
Yeaday CPI and we talked about stagflation a

341
00:29:48.319 --> 00:29:53.400
couple of weeks ago on the show. I've mentioned that we're well that what

342
00:29:53.559 --> 00:30:00.039
is stagflation. Stagflation is when you
actually have a slow down in earnings and

343
00:30:00.079 --> 00:30:10.240
in the economy, but you don't
have inflation coming down growth. And last

344
00:30:10.240 --> 00:30:18.119
time we had that was seventies.
Jimmy Carter, do you think that I

345
00:30:18.160 --> 00:30:22.799
think so real Australia stagflation were really
hurt. I mean, we we've heard

346
00:30:22.799 --> 00:30:26.240
the word a few times, but
I mean in the two early two thousand

347
00:30:26.279 --> 00:30:30.519
that was in stackflation, they got
the hell beat out of it. Okay,

348
00:30:30.519 --> 00:30:33.119
then we heard it a few times, but the seventies was because what

349
00:30:33.160 --> 00:30:37.559
you had was you had the oil
crisis. We should think back, how

350
00:30:37.599 --> 00:30:41.519
stupid was that we have so much
If we have so much oil now,

351
00:30:41.599 --> 00:30:42.799
Dave, what do you think it
going away? They didn't have it back

352
00:30:42.839 --> 00:30:47.799
then. We just weren't swant enough
to go go go get it, you

353
00:30:47.920 --> 00:30:51.000
know, you know what I mean. And now now we we could be

354
00:30:51.079 --> 00:30:55.480
independent. We got independent, okay, not where we weren't dependent on anybody

355
00:30:55.519 --> 00:30:59.480
else for oil. We still did
global trading of oil buying and selling,

356
00:30:59.680 --> 00:31:02.359
but we know we didn't have to
worry about anybody else. And then Biden

357
00:31:02.440 --> 00:31:07.920
in three years makes us dependent on
oil again from other countries, you know.

358
00:31:07.079 --> 00:31:11.599
And with what's going on in the
Middle East, it's there, you

359
00:31:11.640 --> 00:31:12.279
know. And I know we were
going to talk about it, but it

360
00:31:12.279 --> 00:31:18.839
does blow my mind that we tell
Israel will give them money, give you

361
00:31:18.160 --> 00:31:23.640
create money, but now we're putting
conditions on Israel getting their their ammunition.

362
00:31:25.559 --> 00:31:30.720
It's like, what are we try
to control everything that bothers me? Dave?

363
00:31:30.400 --> 00:31:37.359
You and I know it's political.
What's his band? I don't think

364
00:31:37.400 --> 00:31:41.599
his base wants to hear that either. I think there's a people at Michigan

365
00:31:41.640 --> 00:31:44.079
don want to hear it. I
think there's people are some other places want

366
00:31:44.079 --> 00:31:48.240
to hear it. I think that
twenty people protesting down on the U of

367
00:31:48.279 --> 00:31:51.319
A by University want to hear it. I drove by their less time,

368
00:31:51.440 --> 00:31:56.079
like what are you guys doing?
It's like, get a life, like

369
00:31:56.759 --> 00:32:04.559
about just because they're graduationally yeah,
I mean yeah, And then here you've

370
00:32:04.559 --> 00:32:07.680
asked people just processing off pug Well. The worst part is some of these

371
00:32:07.680 --> 00:32:10.720
people I saw were forty to fifty
years old. Okay, they're not college

372
00:32:10.720 --> 00:32:15.400
students doing this, Okay, God, and they they've talked about that about

373
00:32:15.400 --> 00:32:19.319
how a lot of the protesters are
not even college students. They've been shipped

374
00:32:19.359 --> 00:32:22.599
in and anyway, Okay. Bottom
line is if we tell them we're giving

375
00:32:22.640 --> 00:32:24.799
them money, you give them the
money. If you're going to put a

376
00:32:24.839 --> 00:32:28.359
restriction on the money, you tell
them you're going to put a restriction on

377
00:32:28.400 --> 00:32:31.160
the money. Before Congress votes on
the money, Congress needed to vote on

378
00:32:31.200 --> 00:32:35.559
the fact that there's restrictions on it, not just President Biden say we're not

379
00:32:35.559 --> 00:32:38.160
giving you the money. You remember
the last time that happened was Ukraine with

380
00:32:38.319 --> 00:32:42.240
Trump and what they want to do. They want to do impeach them because

381
00:32:42.240 --> 00:32:45.400
of that, right, right,
the double standard is so much right in

382
00:32:45.480 --> 00:32:50.359
everyone's face. It's a horrible way
of we're living right now. It's hard,

383
00:32:50.400 --> 00:32:52.440
and the media just lets it go
away with it. It is horrible

384
00:32:52.960 --> 00:32:55.559
interest And you know, we're all
watching the interest rates. Everybody wants to

385
00:32:55.599 --> 00:33:00.039
see interest rates kind of edging down, and they they flattened out. The

386
00:33:00.160 --> 00:33:04.799
interest rates were fractionally lower last week, but they're still the same rate they

387
00:33:04.799 --> 00:33:07.920
were in September. Good news is
they're not higher than they were in September.

388
00:33:09.160 --> 00:33:13.680
Well, that's only because what's his
name said? When our next move

389
00:33:13.720 --> 00:33:15.960
will not be up? No,
And I think that's pretty clear that interest

390
00:33:16.039 --> 00:33:21.000
rates, if anything, have peaked
here. And probably how do you take

391
00:33:21.039 --> 00:33:24.839
advantage of that? Yeah, do
you extend your maturities on your bonds.

392
00:33:25.079 --> 00:33:30.359
You buy preferred stocks, things that
will be positively impacted by a decline in

393
00:33:30.359 --> 00:33:35.400
interest rates. Utilities, Yeah,
first, utilities had a great week.

394
00:33:36.400 --> 00:33:37.839
You go out, you know,
if you want in two years, you

395
00:33:37.880 --> 00:33:43.720
start going on five years. You
buy some longer term bond funds like like

396
00:33:43.960 --> 00:33:49.359
TLT and stuff, things that will
actually go up if interest rates come down.

397
00:33:49.759 --> 00:33:52.119
But it protects you because you get
some but it's a diversified portfolio.

398
00:33:52.440 --> 00:33:55.000
You knownyone. That's things. You
just buy fixed income, you leave it.

399
00:33:55.759 --> 00:34:00.599
You still have to invest in the
in fixed income like you do the

400
00:34:00.640 --> 00:34:05.079
markets and everything else. It's all
called diversification and allocation. On how they

401
00:34:05.200 --> 00:34:07.960
do it. It's easy for us, but it's not easy for a lot

402
00:34:07.960 --> 00:34:10.079
of people. People just throw the
money into the funds and they don't realize

403
00:34:10.400 --> 00:34:15.760
what happens when rates move No.
Absolutely, and we saw it in spades

404
00:34:15.800 --> 00:34:19.880
back in twenty one when the intertrace
started to move up, and again in

405
00:34:19.960 --> 00:34:22.920
twenty two, I'm sorry, twenty
two and twenty three, not twenty one.

406
00:34:22.800 --> 00:34:27.920
We saw what happens when interest rates
move up. We saw thirty year

407
00:34:28.000 --> 00:34:31.800
treasury bonds dropping value by thirty percent. Thirty percent, Well, yes,

408
00:34:31.880 --> 00:34:37.800
will it ultimately mature at what you
invested at par Yes, thirty years from

409
00:34:37.800 --> 00:34:40.679
now, you know, if any
of us are around. But you've really

410
00:34:40.679 --> 00:34:44.440
got to be careful with that.
Oil was unchanged on the week at seventy

411
00:34:44.480 --> 00:34:47.599
eight bucks. Gold had a tremendous
week, sixty up sixty eight dollars to

412
00:34:47.679 --> 00:34:51.559
twenty three sixty seven. I know
we're coming up on a break, but

413
00:34:51.599 --> 00:34:58.320
I've got some thoughts about gold and
what might be keeping a floor under gold

414
00:34:58.840 --> 00:35:04.559
around twenty three hundred. It doesn't
seem to want to go below twenty three

415
00:35:04.639 --> 00:35:08.960
hundred, and I have some thoughts
as to why that might happen. Two

416
00:35:09.000 --> 00:35:14.880
year inverted yield curve continues, the
ten year four and a half, the

417
00:35:14.960 --> 00:35:19.719
two year almost four point nine,
so about a thirty eight basis point inversion.

418
00:35:20.000 --> 00:35:24.559
Still the longest interest rate inversion we've
ever seen in the history of this

419
00:35:24.599 --> 00:35:29.159
country. It's gonna be funny too. Eventually we'll have a lew session and

420
00:35:29.199 --> 00:35:31.280
they'll say, you see, if
you just remember that there was gonna be

421
00:35:31.320 --> 00:35:37.119
the inverted curve, there was a
recession after three years after inverted hee was

422
00:35:37.159 --> 00:35:38.920
predicted. All right, we'll be
back. You listen to the Money bat

423
00:35:38.920 --> 00:35:43.079
Of Show. We do appreciate if
you miss any part of our show.

424
00:35:43.719 --> 00:35:46.400
Just go to our website, look
it up podcasts. You can hear any

425
00:35:46.440 --> 00:35:50.320
part of all of it this week, last week, the week before.

426
00:35:50.719 --> 00:35:53.239
It's there for you. Thank you
for listening. Welcome back, everybody.

427
00:35:53.320 --> 00:35:57.880
It's the Moneybatter Show. Dave Sebastian, myself here for the first hour.

428
00:35:58.280 --> 00:36:01.239
Todd and Dylan will come for the
second hour. So Dave, you tease

429
00:36:01.280 --> 00:36:05.599
everybody with gold. Let's hear it. We talked about gold, and it's

430
00:36:05.760 --> 00:36:09.920
really interesting how gold is acting right
now. Gold typically moved in versely to

431
00:36:10.000 --> 00:36:15.440
the US dollar. It can move
up or down when there's international crisis.

432
00:36:15.039 --> 00:36:19.039
It's in its own little world right
now. It's not reacting to any of

433
00:36:19.079 --> 00:36:22.639
the historical things. Now. It
got me to thinking, why is that.

434
00:36:22.719 --> 00:36:27.000
Well, it seems to have a
floor around twenty three hundred and just

435
00:36:28.000 --> 00:36:30.559
will not go below that. And
then you get a big pop up.

436
00:36:30.960 --> 00:36:36.000
We know Costco is selling about two
hundred million dollars worth of gold a month

437
00:36:36.559 --> 00:36:43.400
on their website. Now Korea's largest
convenience store is selling fingernail sized bars weighing

438
00:36:43.440 --> 00:36:46.119
about one gram, just like Costco, and they can't keep them in stock.

439
00:36:47.119 --> 00:36:52.679
And I'm thinking, is what driving
gold? And putting a four under

440
00:36:52.719 --> 00:36:58.480
gold? Tens of millions of people
just buying a little bit, I mean

441
00:36:58.800 --> 00:37:01.079
all of a sudden. I mean
Costo never sold gold before. That's two

442
00:37:01.119 --> 00:37:06.880
hundred million dollars a month. That's
pretty good chunk can change. So you're

443
00:37:06.920 --> 00:37:10.400
saying that the accessibility is driving the
demands. Essentially, I'm saying the demand

444
00:37:10.440 --> 00:37:19.760
for gold has risen dramatically over the
past six to twelve months due to Costco

445
00:37:20.440 --> 00:37:29.119
and now a Korean Korea's largest convenience
store selling it. Nothing really makes sense

446
00:37:29.519 --> 00:37:34.360
as to why gold has the bid
that it has other than something like that

447
00:37:34.400 --> 00:37:39.599
where there just is so much demand
from millions, maybe tens of millions of

448
00:37:39.679 --> 00:37:45.920
people who are buying a couple grand
worth five grand worth some of the coins.

449
00:37:45.000 --> 00:37:49.199
Right, Yeah, just seems like
it. Speaking of Costco, people

450
00:37:49.320 --> 00:37:53.480
keep gravitating towards the discounter. Same
store sales in April were up an impressive

451
00:37:53.559 --> 00:37:59.159
seven point one percent, which was
well above estimates. Stock is already up

452
00:37:59.239 --> 00:38:01.840
sixty percent in the last twelve months, so then it initially showed little reaction

453
00:38:02.000 --> 00:38:07.719
to that same store sale. Then
I moved a percent higher closed very close

454
00:38:07.760 --> 00:38:13.119
to an all time high. Costco
is one of the great companies in this

455
00:38:13.920 --> 00:38:20.440
country, maybe even in the world, but it sells at a price earnings

456
00:38:20.519 --> 00:38:23.719
ratio of forty eight, which is
probably about four times any other retailer,

457
00:38:24.440 --> 00:38:29.719
and it doesn't have much of a
dividend. There are two catalysts, however,

458
00:38:29.760 --> 00:38:35.960
out there that could move the stock
noticeably higher. And I'm not suggesting

459
00:38:36.000 --> 00:38:39.800
that the stock is overpriced. I'm
simply suggesting it is really expensive. It's

460
00:38:39.880 --> 00:38:45.920
really expensive based upon other retailers,
based upon their growth rate, based upon

461
00:38:45.079 --> 00:38:52.280
historic measures, it's really expensive.
Two catalysts stock split could happen at any

462
00:38:52.280 --> 00:38:55.360
time. It could come out with
a ten for one, twenty for one

463
00:38:55.559 --> 00:39:00.199
stock split, or a fifty for
one like Chipotla, and that's rally just

464
00:39:00.280 --> 00:39:01.639
off of that. Yeah, fifty
is going to be hard with the price

465
00:39:01.719 --> 00:39:06.880
around eight hundred, probably more like
a ten or twenty or twenty five for

466
00:39:06.960 --> 00:39:09.159
one. That would really, i
think, really ignite a rally in the

467
00:39:09.159 --> 00:39:14.480
stock. The other would be an
increase in the membership piece, because I

468
00:39:14.480 --> 00:39:20.039
think probably based upon the amount of
business they're doing and the success they're having

469
00:39:20.079 --> 00:39:25.639
at it, they probably could quite
easily raise membership fees in this environment.

470
00:39:25.719 --> 00:39:30.119
I think it's interesting how some stock
splits end up playing out, because,

471
00:39:30.159 --> 00:39:32.800
for example, like Walmarts, I
think it was trading around around one eighty

472
00:39:32.880 --> 00:39:36.360
or so, they ended up doing
a stock split, came down to sixty,

473
00:39:36.679 --> 00:39:39.519
and s floated around sixty for i'd
say about two months. Chipotle,

474
00:39:39.599 --> 00:39:44.400
they haven't actually committed they're going to
split fifty for one here at the at

475
00:39:44.480 --> 00:39:47.039
the start of the second quarter,
fifty fifty fifty shares for one and that's

476
00:39:47.039 --> 00:39:52.159
in the stock. Stock has rallied
about ten percent since then, right,

477
00:39:52.239 --> 00:39:55.239
so it'll be interesting to see once
it comes back down, which in theory

478
00:39:55.280 --> 00:40:01.119
makes it more affordable for them,
right for the average retail con retail investor,

479
00:40:01.440 --> 00:40:04.880
which it isn't more affordable. You're
still getting the same piece of the

480
00:40:04.920 --> 00:40:08.639
pie. It's just a little bit
cheaper. It's funny because some companies that

481
00:40:08.760 --> 00:40:13.400
drives up the price some and doesn't
nobody really cares. I think if you

482
00:40:13.440 --> 00:40:17.320
look at the market, about eighty
percent of the buying is institutional type people,

483
00:40:17.480 --> 00:40:22.559
mutual funds, etf things like that. Individual investors really don't account for

484
00:40:22.599 --> 00:40:24.840
a lot of it. I think
what Chipoti was trying to do is just

485
00:40:24.880 --> 00:40:30.480
get a little bit different ownership base, maybe bring more individuals in, a

486
00:40:30.480 --> 00:40:37.719
little less of the institutional involvement.
Hey, I saw something last week that

487
00:40:37.760 --> 00:40:40.119
then I talked about you. I
talked about the guys that we have joked

488
00:40:40.119 --> 00:40:45.880
about Fisker Electric Vehicle. Yeah yeah, yeah for a long time, Like

489
00:40:46.480 --> 00:40:49.840
you want to come over and see
my new EV or what did you get?

490
00:40:49.880 --> 00:40:52.639
Oh, I got a Fisker.
No thanks, you got one anyway?

491
00:40:52.920 --> 00:40:58.000
I actually saw one up at lawn
Cantata here in Tucson. It's a

492
00:40:58.079 --> 00:41:01.840
Fisker Ocean, very nice color.
And again over the weekend in La I

493
00:41:01.880 --> 00:41:06.800
saw one. There are not a
lot of them out there. Get this.

494
00:41:06.880 --> 00:41:10.159
The company that makes this vehicle started
in two thousand and seven. In

495
00:41:10.199 --> 00:41:15.440
twenty thirteen, they went bankruptcy.
They re emerged in twenty sixteen. Three

496
00:41:15.519 --> 00:41:22.360
years later. They have subsequently experienced
severe financial problems, and the stock was

497
00:41:22.400 --> 00:41:25.719
delisted from the New York Stock Exchange
this year and currently trades for a five

498
00:41:25.719 --> 00:41:31.920
census Sure. Now it's a cool
looking car, Sebastian, But I am

499
00:41:32.039 --> 00:41:37.360
puzzled why someone who wants an eleuxtury
vehicle would choose this one. The Fisker.

500
00:41:37.760 --> 00:41:40.360
Oh yeah, yeah, I haven't
seen any of them out there,

501
00:41:40.440 --> 00:41:45.719
So I agree with you there not
only do they have a checkered history.

502
00:41:47.000 --> 00:41:51.639
And the problem with that is,
let's say you get yourself a new Fisker

503
00:41:52.360 --> 00:41:54.280
and the company goes out of business, goes bankrupt again, go to bankrupt

504
00:41:54.320 --> 00:41:59.280
again. You know what's what's going
to happen. Here's going to run your

505
00:41:59.280 --> 00:42:00.880
maintenance? Now, kind of kind
of interesting. This is a problem.

506
00:42:01.039 --> 00:42:07.320
Did you guys talk about the teen
survey last year or last week? I

507
00:42:07.360 --> 00:42:09.079
think that was two weeks ago,
but which we mentioned it, mentioned it,

508
00:42:09.119 --> 00:42:12.280
but we didn't actually talk about it. Right, Yeah, there's an

509
00:42:12.440 --> 00:42:15.760
semi annual teen survey that is done
by IT. I can't remember the name

510
00:42:15.800 --> 00:42:17.760
of the brokerage room that does it. Fisher not Fisher, I can't remember.

511
00:42:17.800 --> 00:42:22.760
It doesn't matter, but it's interesting
because teens are kind of cutting edge

512
00:42:22.840 --> 00:42:24.159
right there. You're gonna you want
to be cool. If you're a teen,

513
00:42:24.159 --> 00:42:27.079
you really want to be cool.
And the parents who want to be

514
00:42:27.119 --> 00:42:30.599
cool parents kind of look at what
the teens are doing and it's kind of

515
00:42:30.639 --> 00:42:35.280
a The survey is kind of seen
as a here's what's coming type of thing.

516
00:42:35.519 --> 00:42:38.440
And there were a couple of interesting
takeaways from this semi annual teen survey.

517
00:42:38.760 --> 00:42:44.599
Nike is still the number one shoe
amongst teens, the new Balance showed

518
00:42:44.599 --> 00:42:47.440
the strongest gains, and a strong
third is hokah, wow, more and

519
00:42:47.440 --> 00:42:52.760
more hokah. So those are the
three. Uh great, they are nice.

520
00:42:52.360 --> 00:42:57.039
I have a client that that turned
me on to on On, which

521
00:42:57.079 --> 00:42:59.960
is a Swedish company. Uh,
and I have a pair of those.

522
00:43:00.039 --> 00:43:01.880
Those are really nice. I like
those better than the Hookahs. Actually,

523
00:43:01.960 --> 00:43:05.559
do you have Hocus? I do
have Hokas. I have on on my

524
00:43:05.639 --> 00:43:12.119
feet hours every day coaching, and
I switched to Hocus. They just take

525
00:43:12.119 --> 00:43:14.880
away the pain in your back and
everything. No, they're a good shoe,

526
00:43:15.119 --> 00:43:16.719
good show. I like it.
I like the on on better though,

527
00:43:17.039 --> 00:43:21.519
despite the stupid dame studies checkout.
I'm not a teenager, but I

528
00:43:21.639 --> 00:43:24.000
do. I just bought a pair
of new Balances I'd say about three months

529
00:43:24.000 --> 00:43:27.639
ago. And I also just bought
a pair of Hokahs for right there you

530
00:43:27.679 --> 00:43:30.760
go. You're you're right in there, buddy, You're not that far removed

531
00:43:30.760 --> 00:43:34.519
from it. I guess I fell
into it. Huh. Beauty product expenditure

532
00:43:34.639 --> 00:43:38.039
is the highest and is twenty eighteen
for teens, but eighty five percent of

533
00:43:38.079 --> 00:43:42.199
them want to do that in store, which makes sense. You're trying on

534
00:43:42.760 --> 00:43:46.519
maskre or lipstick or I don't know, but what all women wear, but

535
00:43:46.840 --> 00:43:51.960
if you want to be in the
store for that. TikTok number one but

536
00:43:52.079 --> 00:43:55.960
declining while Instagram is gaining. So
TikTok is fading while Instagram is gaining of

537
00:43:55.960 --> 00:44:01.800
course, Instagram is meta. Is
the number one restaurant amongst teams, has

538
00:44:01.840 --> 00:44:07.280
been for a long time. Number
two McDonald's, Wow, I wouldn't have

539
00:44:07.320 --> 00:44:12.239
expected that. Number three Chipotle right. Starbucks is their favorite coffee dean their

540
00:44:12.239 --> 00:44:16.599
favorite energy to drink, Celsiuslius.
I don't know it used to be something

541
00:44:16.639 --> 00:44:20.719
out but Celsius. They can't drink
too many of them. But if you're

542
00:44:20.719 --> 00:44:22.559
not drinking coffee, you're not drinking
the other stuff. A little Celsius here

543
00:44:22.559 --> 00:44:25.119
and there. I have a little
bit of a before practice. I have

544
00:44:25.119 --> 00:44:29.039
a little bit of housekeeping from last
week. Actually, I mentioned something about

545
00:44:29.039 --> 00:44:31.280
Walmart's closing down the pharmacies, coming
into closing the pharmacies. They are not

546
00:44:31.480 --> 00:44:35.599
closing their pharmacies. They're actually going
to be closing all their clinics. So

547
00:44:35.639 --> 00:44:39.760
this means the little shops that you
could come into and get a shot or

548
00:44:40.199 --> 00:44:44.280
come check your blood pressure. That's
what they'll be closing, not their actual

549
00:44:44.280 --> 00:44:47.000
pharmacies in store. The whole minute
cutting thing at CBS, well, well

550
00:44:47.280 --> 00:44:51.719
I didn't understand it at all.
Inither it makes no sense, and that's

551
00:44:51.719 --> 00:44:55.039
why they're closing it. It seems
like I'm not I'm not going to run

552
00:44:55.079 --> 00:45:00.119
down to Walgreens if I if I'm
ill, you know, no, it

553
00:45:00.159 --> 00:45:01.440
seems like it seems like there might
be I'm going to run down the walkings

554
00:45:01.480 --> 00:45:08.440
I phone on a shoplift. Ooh
ooh. Brutal, brutal. You know.

555
00:45:08.559 --> 00:45:14.199
It's it's interesting because yeah, I
saw a report on global electric vehicle

556
00:45:14.239 --> 00:45:20.400
sales and it's it's it was interesting
to me. China has fifty eight percent

557
00:45:21.039 --> 00:45:25.960
of all electric vehicle sales fifty eight
percent, Europe twenty five percent, US

558
00:45:27.320 --> 00:45:30.840
ten percent. I wonder how the
infrastructure for like the charging is in China.

559
00:45:30.960 --> 00:45:36.159
I have no idea. It's got
must must be a plus they have.

560
00:45:36.360 --> 00:45:38.159
They seem to have more companies.
Well, yeah, Dave, have

561
00:45:38.199 --> 00:45:43.000
you seen that the new report that
the Biden administration is going to increase tariff

562
00:45:43.039 --> 00:45:46.280
on Chinese evs to one hundred percent, quadrupling it from the twenty five percent

563
00:45:46.360 --> 00:45:50.519
currently. That came out on Friday, And it was really interesting because it

564
00:45:50.639 --> 00:45:53.840
came out and then thank you Todd. That's a great segue because on Friday

565
00:45:53.880 --> 00:46:00.920
we had a new IPO for a
Chinese electric vehicle company that did really well,

566
00:46:00.960 --> 00:46:06.000
and I had to and that same
day, other Chinese electric vehicle companies

567
00:46:06.039 --> 00:46:10.079
were taking four and five percent hits
because of this announcement that Biden is considering

568
00:46:10.199 --> 00:46:15.800
or going to do more tariffs against
Chinese electric vehicles, stock jump forty percent,

569
00:46:16.440 --> 00:46:21.400
which I thought that was pretty darn
impressive performance. And I'm not sure

570
00:46:21.400 --> 00:46:25.000
we need another electric vehicle stock,
but it was kind of interesting. The

571
00:46:25.119 --> 00:46:30.360
name of the company is Zeke with
an R z E E k R.

572
00:46:30.480 --> 00:46:35.119
Is that Zeker? And I thought
this would really hurt byd you know,

573
00:46:35.159 --> 00:46:37.159
but they their shares didn't really hurt
get hurt too much because I guess they

574
00:46:37.159 --> 00:46:40.760
don't sell any cars in the US, so it's not really a It's not

575
00:46:40.800 --> 00:46:44.400
been part of their business model already. I they got to get them here

576
00:46:44.440 --> 00:46:45.639
too. I mean it's going to
take a long time. Everyone thinks they're

577
00:46:45.639 --> 00:46:51.239
just going to open up Zeka shops. I have a hard time imagining an

578
00:46:51.280 --> 00:46:54.119
American buying a Chinese electric vehicle.
I don't know, maybe it's maybe it's

579
00:46:54.159 --> 00:46:58.440
just me. Well, it's just
like thinking, why would a Chinese buy

580
00:46:58.480 --> 00:47:01.840
a Tesla? Correct? Yeah,
but did you see the college pretty cool

581
00:47:01.840 --> 00:47:05.599
looking the Zeker? Yeah? I
did not see. It's gonna be cheaper.

582
00:47:05.880 --> 00:47:07.840
It's cool looking, yeah, and
who knows what it's gonna be like

583
00:47:07.880 --> 00:47:10.159
inside there. You know what I'm
saying. It's gonna be all about price

584
00:47:10.199 --> 00:47:14.079
game. Yeah, and they're gonna
come in cheap. And that's why they

585
00:47:14.119 --> 00:47:16.000
keep talking about putting tyrests on.
And all right, we'll be back its

586
00:47:16.039 --> 00:47:20.199
first hour, the Money Mattery Show. Everyone will be here for the second

587
00:47:20.280 --> 00:47:24.599
hour. I can't tell you how
many times people say they like this show

588
00:47:24.960 --> 00:47:29.920
and we do appreciate that. Thank
you. Welcome back everybody. This is

589
00:47:29.960 --> 00:47:32.639
the Money Matter Show. We got
Dave, Dylan, Todd and Sebastian and

590
00:47:32.639 --> 00:47:36.480
myself well here, so we're gonna
get a lot of different opinions on this

591
00:47:36.599 --> 00:47:39.599
second hour. Yeah, So what
we're starting to go over the weekly numbers

592
00:47:40.719 --> 00:47:45.039
goll The Dow was up two point
two percent on the week, The S

593
00:47:45.039 --> 00:47:47.960
and P was up one point nine
percent, Now's DAK was up one point

594
00:47:49.000 --> 00:47:52.639
one the Russell two thousand was up
one point two and the equal weighted was

595
00:47:52.719 --> 00:47:57.800
up two percent. So overall,
market saw a really nice week. We

596
00:47:57.800 --> 00:48:00.719
were thinking that it was potentially leading
up trading up on this resistance, but

597
00:48:01.000 --> 00:48:04.800
seemed like it got above it.
But again, I think the story is

598
00:48:04.840 --> 00:48:09.360
that the Russell two thousands continue to
lag the overall market. My idea I

599
00:48:09.400 --> 00:48:14.239
had a conversation with someone about this
is if you had a Russell five hundred,

600
00:48:14.480 --> 00:48:16.360
I feel like that would perform a
lot better than the Russell two thousand,

601
00:48:16.519 --> 00:48:21.079
because we know that small caps are
normally supposed to lead a bull run,

602
00:48:21.559 --> 00:48:23.800
but they just haven't. But I
think a large that largely has to

603
00:48:23.840 --> 00:48:28.960
do with fifteen hundred of those companies
just being really like zombie companies, never

604
00:48:29.159 --> 00:48:31.679
going to come back, and that
kind of had this effect that we're seeing

605
00:48:31.719 --> 00:48:36.920
coming off of this pandemic where smaller
companies have really having trouble getting back to

606
00:48:37.000 --> 00:48:40.280
that growth. You know that we've
seen historically come out of the space good

607
00:48:40.320 --> 00:48:44.559
God. I think that we had
an eight day that that has now been

608
00:48:44.679 --> 00:48:47.280
up eight consecutive days, which is
the longest streak this year. I think

609
00:48:47.320 --> 00:48:52.719
the S and P stopped at five
consecutive days, which again was the longest

610
00:48:52.719 --> 00:48:57.400
streak this year. What's driving the
market this week? It was lower interest

611
00:48:57.440 --> 00:49:01.760
rates, lower oil prices, and
drawn corporate Tod's point, I think the

612
00:49:01.800 --> 00:49:07.159
higher interest rates really affect these zombie
companies to you know, they keep them

613
00:49:07.199 --> 00:49:08.760
as zombie companies. It's really hard
to come out of that in a high

614
00:49:08.840 --> 00:49:14.079
interest rate environment. High interest rate
environment's really not that I guess, you

615
00:49:14.119 --> 00:49:19.239
know. Another another interesting part of
another interesting sector of the economy is the

616
00:49:19.280 --> 00:49:22.920
S and P five hundred XLU,
which shows the utility side of the S

617
00:49:22.960 --> 00:49:27.840
and P five very strongly. But
even if you look at the last you

618
00:49:27.880 --> 00:49:31.039
know, three weeks or almost four
weeks, it's up seventeen out of the

619
00:49:31.119 --> 00:49:36.000
last nineteen trading days. Wow.
So it's just been a straight you know,

620
00:49:36.079 --> 00:49:37.280
things don't grow to the sky,
so it seems like there's going to

621
00:49:37.360 --> 00:49:40.920
have to be a breather here coming
up. But that space has just been

622
00:49:40.920 --> 00:49:45.039
dominated. Why is that right?
So I did some you know research into

623
00:49:45.079 --> 00:49:50.400
the space, and apparently in twenty
twenty two, most of our energy that

624
00:49:50.599 --> 00:49:53.639
you know, utilities predominantly, I
mean, the growth of energy consumption came

625
00:49:53.639 --> 00:50:00.480
from data centers and cryptocurrencies because obviously
cryptocurrency miners use energy. Data centergy energy

626
00:50:00.519 --> 00:50:04.559
pretty easy to understand. Something that's
new that's coming in that they're forecasting for

627
00:50:04.599 --> 00:50:08.119
twenty twenty six is something called AI
data centers, right, and obviously we

628
00:50:08.199 --> 00:50:10.960
know, AI wasn't really a thing
in twenty twenty two, very much a

629
00:50:10.960 --> 00:50:14.719
thing in twenty twenty four, definitely
going to be much more of a thing

630
00:50:14.760 --> 00:50:17.639
in twenty twenty six. That energy
consumption that increase is going to help utilities

631
00:50:17.679 --> 00:50:22.480
obviously, because the demand of energy
goes up as well as what we're seeing

632
00:50:22.519 --> 00:50:25.239
is kind of seeming like the demand
supply of energy is going down. So

633
00:50:25.280 --> 00:50:30.320
you're kind of seeing this best of
both worlds on this supply and demand aspect,

634
00:50:30.800 --> 00:50:34.519
and it's very interesting. I also
see that cryptocurrency's use of energy is

635
00:50:34.519 --> 00:50:37.320
growing as well, So not only
is data centers growing, cryptocurrency use is

636
00:50:37.559 --> 00:50:43.599
growing. And now you have this
new market you know that's taking away energy

637
00:50:43.840 --> 00:50:47.159
and it's AI data centers. So
with more and more consumption of energy,

638
00:50:47.400 --> 00:50:52.199
less and less supply of it because
of these regulations that government's putting on different

639
00:50:52.199 --> 00:50:54.840
people, it seems like you're gonna
it could potentially be a really good decade

640
00:50:54.840 --> 00:50:59.760
for XOU or utilities as a whole. There's also another thing that's to stuck

641
00:50:59.760 --> 00:51:04.239
going to a little bit of energy
called electric vehicles. You might you might

642
00:51:04.280 --> 00:51:07.239
be onto something there. Dave probably
probably probably the top of the list speaking

643
00:51:07.239 --> 00:51:12.679
also, what's one of the best
performing sectors? Amit a recession? Utilities?

644
00:51:12.679 --> 00:51:15.199
And I would I would throw that
out as it's a defensive play.

645
00:51:16.280 --> 00:51:22.239
So everything that Todd just said is
absolutely one hundred percent accurate, but it's

646
00:51:22.280 --> 00:51:24.679
also a defensive play. When you
want to be involved in the market and

647
00:51:24.719 --> 00:51:28.639
want to be defensive, that's where
you go. And it's one of the

648
00:51:28.639 --> 00:51:30.400
worst performing sectors of the S and
P. So a lot of people they

649
00:51:30.480 --> 00:51:35.119
do cyclical investing or they're just trying
to buy bottoms, right, so they're

650
00:51:35.159 --> 00:51:38.679
picking the sectors that are relatively performed
worse in the S and P. And

651
00:51:38.719 --> 00:51:43.320
that would be right now x o
U, the real estate sector and consumer

652
00:51:43.360 --> 00:51:45.239
staples. Those are the bottom three
performing over the last year, all of

653
00:51:45.280 --> 00:51:52.000
which have in common being penalized by
higher interest rates. Utilities in particular are

654
00:51:52.000 --> 00:51:55.840
so capital intensive that higher interest rates
are a real problem for utilities. And

655
00:51:55.880 --> 00:52:02.599
now that now that you rates appear
to have there's also a play on declining

656
00:52:02.679 --> 00:52:07.039
interest rates because that makes things better
for utilities. You know, we're all

657
00:52:07.079 --> 00:52:10.840
concerned about inflation, and actually,
I got better segue. Let me let

658
00:52:10.880 --> 00:52:15.920
me just go to this because we
kind of were talking about electric things.

659
00:52:15.639 --> 00:52:21.679
Tesla. Federal regulators have given the
company until July first to respond to the

660
00:52:21.719 --> 00:52:28.920
inquiry about the company's massive recall of
it's assisted driving feature. Government has expressed

661
00:52:28.920 --> 00:52:34.079
concerns whether the software fixed that went
out in December worked because there have been

662
00:52:34.119 --> 00:52:42.280
twenty more crashes since since having a
Tesla and knowing about the auto feature.

663
00:52:42.719 --> 00:52:47.320
There's a ton of room for abuse
of that just by being stupid, if

664
00:52:47.360 --> 00:52:53.280
nothing else. Sticking with electric vehicles, Lucid shares already down sixty percent in

665
00:52:53.280 --> 00:52:58.400
the last twelve months, down another
thirteen percent at the open end Monday,

666
00:52:58.400 --> 00:53:01.840
close to an all time low.
After issuing their most recent quarterly report,

667
00:53:02.079 --> 00:53:07.760
they did reaffirm Lucid did reaffirm they
hoped to deliver nine thousand cars this year,

668
00:53:07.199 --> 00:53:12.360
which is what Tesla delivers every two
days. No, LUs is hoping

669
00:53:12.400 --> 00:53:15.239
to do what Tesla does every two
days in the next year. It loose

670
00:53:15.320 --> 00:53:19.320
is more of a premium car.
It is a higher price car, no

671
00:53:19.480 --> 00:53:22.079
question. But you throw the model
action there as model like gets up there.

672
00:53:22.159 --> 00:53:24.400
Yeah, but you don't see a
lot of those for Tesla's No,

673
00:53:24.480 --> 00:53:30.039
you don't because of well and I
think the goal wing thing is kind of

674
00:53:30.159 --> 00:53:35.400
unusual on what the goal wing.
Well, they go up, you know,

675
00:53:35.480 --> 00:53:37.159
and like, how do you put
that in the garage with another car?

676
00:53:37.840 --> 00:53:43.440
It's gonna swing open? Kind of
another challenging, another challenging I'm not

677
00:53:43.480 --> 00:53:46.119
done yet, sorry, and a
Rivian as long as we're on that topic,

678
00:53:46.159 --> 00:53:50.480
that's exactly what again. Already down
sixty percent for the year, they

679
00:53:50.599 --> 00:53:53.880
were another ten percent lower at the
open on Wednesday after another disappointing court.

680
00:53:53.880 --> 00:53:58.800
Here's the thing I took away from
the Rivian report. They lost an average

681
00:53:58.800 --> 00:54:04.960
of thirty six dollars on every vehicle
that they sold, thirty nine thousand on

682
00:54:05.039 --> 00:54:09.800
every vehicle they sold. They're selling
those for like sixty grand? Are there

683
00:54:09.800 --> 00:54:13.559
are three new models out there,
there are a lower price, but some

684
00:54:13.599 --> 00:54:15.960
of them are up there in the
eighties and nineties and still lose thirty nine

685
00:54:16.000 --> 00:54:20.199
thousand. Again, it's like this. It's like with this Chinese electric car

686
00:54:20.239 --> 00:54:25.719
company that came public on Friday.
If you're going to get penetration electric vehicle

687
00:54:25.800 --> 00:54:30.639
penetration beyond what you have right now, you're going to have to have lower

688
00:54:30.639 --> 00:54:37.599
price vehicles. Eventually you get to
a point where everyone who wants an EV

689
00:54:37.760 --> 00:54:42.920
and can afford one has one,
which is why we're starting to see EV

690
00:54:43.079 --> 00:54:45.079
sales slow. Well, it's either
that or they'll pay a premium for a

691
00:54:45.119 --> 00:54:49.760
longer battery life. Yeah, and
I think a different year come out yet,

692
00:54:49.800 --> 00:54:52.320
so a cheaper one hasn't come out
in and longer battery hasn't come out.

693
00:54:52.679 --> 00:54:54.159
And I think the solution, Dylan, as we've talked before, is

694
00:54:55.159 --> 00:54:58.960
the longer battery life. The problem
with that is is going to be more

695
00:54:58.960 --> 00:55:01.639
expensive. That's kind of going the
opposite direction. We also, I'm saying

696
00:55:01.679 --> 00:55:05.960
people will buy, like if Lucy
can figure out how to have a longer

697
00:55:06.000 --> 00:55:07.880
battery life, they'll buy one hundred
and thirty thousand dollars car rather than a

698
00:55:07.960 --> 00:55:12.599
Tesla right eighty or whatever. Sure, I agree with your hundred percent,

699
00:55:12.599 --> 00:55:15.000
but again it's going to be for
the rich. Got a doubt. Yeah,

700
00:55:15.039 --> 00:55:19.119
And the idea is if you want
to become mainstream until you have twenty

701
00:55:19.119 --> 00:55:22.559
five thousand dollars one or twenty thousand
dollars options. Hopefully that's coming somewhere down

702
00:55:22.599 --> 00:55:25.519
the road here, but it's difficult
because the cost of the battery is so

703
00:55:25.599 --> 00:55:29.119
high. Well, it will,
but like you were saying earlier, is

704
00:55:29.159 --> 00:55:32.239
that that the tariff it's gonna be
one hundred percent because what's what was the

705
00:55:32.239 --> 00:55:36.039
one that was coming over? They
have them for like twenty thousand dollars.

706
00:55:36.320 --> 00:55:38.880
Yeah, b y D Yeah BYD
trying to come over because at first they

707
00:55:38.880 --> 00:55:42.519
said, screw it, We're going
to just pay the tariff when it's twenty

708
00:55:42.519 --> 00:55:45.800
five percent. But now if to
do one hundred percent, might rethink it.

709
00:55:45.800 --> 00:55:49.199
It'll be interesting to see what happened
in August with the robo taxi so

710
00:55:49.320 --> 00:55:53.440
called robotaxi, and whether or not
Tesca can come out with an affordable car

711
00:55:54.199 --> 00:55:58.280
that people want. I saw one
the other day that was advertised. It

712
00:55:58.400 --> 00:56:00.480
was the Fiat. I don't know
if you've seen it or not, but

713
00:56:00.519 --> 00:56:06.800
the Fiat, and it had a
range it was it was relatively inexpensive.

714
00:56:07.079 --> 00:56:09.400
It had a range of one hundred
and thirty miles, which means the real

715
00:56:09.480 --> 00:56:15.199
range is like under one hundred miles. So it's strictly for running erons around

716
00:56:15.199 --> 00:56:17.760
town and that's not gonna get you
anywhere, and who wants to fil Anyways,

717
00:56:17.800 --> 00:56:21.159
I'm want to talk a little bit
about the vacation space. Last week

718
00:56:21.159 --> 00:56:24.480
we talked about VRBO plunging on weaker
guidance. This week we had Trip Advisors

719
00:56:24.519 --> 00:56:30.280
shares plunging around thirty percent. Travel
booking company announces a special committee had not

720
00:56:30.280 --> 00:56:35.400
found any potential deals with the third
parties. On another note, we have

721
00:56:35.440 --> 00:56:38.159
Airbnb, but wasn't that something a
ship advisor just to touch base on that

722
00:56:38.199 --> 00:56:42.159
a little bit that they came out
and said, well, we can't find

723
00:56:42.159 --> 00:56:45.039
anybody interested in buying us, and
bang bang thirty percent down it went thirty

724
00:56:45.079 --> 00:56:50.079
percent. And then you also have
Airbnb. The vacation rental company tumbled seven

725
00:56:50.320 --> 00:56:53.880
percent after weaker than expected guidance coming
into this next quarter. Why are we

726
00:56:53.880 --> 00:56:58.719
seeing that just vacations more expensive?
Maybe people are booking straight through the hotel

727
00:56:58.760 --> 00:57:02.639
websites or ever, it's probably the
continued trend of going back to hotels over

728
00:57:02.679 --> 00:57:07.639
airbnbs because Airbnb's are getting so strict
and so expensive with the extra fees totally

729
00:57:07.800 --> 00:57:10.119
to try and kick in all the
profit. That's where people can get profit

730
00:57:10.119 --> 00:57:14.280
now, because they got to pay
Airbnb. If you're in a host then

731
00:57:14.280 --> 00:57:16.280
you want to make money obviously,
so they're gonna charge you some other ways.

732
00:57:16.280 --> 00:57:19.679
It's just getting expensive. So then
people are like, all right,

733
00:57:19.679 --> 00:57:22.199
well, I'll just go to a
hotel where it's about the same price,

734
00:57:22.199 --> 00:57:23.679
but don't got to worry about cleaning
or anything like that. Don't got to

735
00:57:23.679 --> 00:57:27.280
worry about cleaning, and I got
a free breakfast. Why not. Remember

736
00:57:27.559 --> 00:57:30.280
we're getting very strict too. Yeah, they are definitely. Remember in twenty

737
00:57:30.320 --> 00:57:34.159
twenty, it was all about things, right, we were all stuck in

738
00:57:34.159 --> 00:57:37.480
the house, we were all stuck
at with mask on. It was about

739
00:57:37.559 --> 00:57:42.320
getting things, which created the supply
problems and all that, most of the

740
00:57:42.360 --> 00:57:47.800
inflation. So you all know what
happened. You come about two years down

741
00:57:47.800 --> 00:57:52.880
the road, and it was all
about experiences, right, Almost every indicator

742
00:57:53.000 --> 00:57:59.320
would now tell you that we're done
with that, that that's starting to slowly

743
00:57:59.440 --> 00:58:04.679
decline. So that's going to impact
airbnb, is going to impact airlines,

744
00:58:05.280 --> 00:58:12.400
it's going to impact hotels. Perhaps
that we are now to where we've had

745
00:58:12.440 --> 00:58:16.079
the experiences that we wanted coming out
of the pandemic, and we go on

746
00:58:16.119 --> 00:58:21.039
to the next thing. You know, we're all concerned about inflation. We

747
00:58:21.119 --> 00:58:24.320
get the CPI report next Wednesday.
We all kind of will always hang on,

748
00:58:24.599 --> 00:58:28.920
you know, needles and threads,
and we're waiting for that CPI report,

749
00:58:28.960 --> 00:58:31.599
so it's going to be this month, and it has been slowly steadily

750
00:58:31.679 --> 00:58:36.639
ticking higher for the last three or
four months. We'd like to see that

751
00:58:36.800 --> 00:58:42.199
stop. But this is an interesting
thing. We know that Costco store traffic

752
00:58:42.320 --> 00:58:45.559
is up big because Costco has been
saying to their suppliers, we're not going

753
00:58:45.639 --> 00:58:49.559
to buy it at that price.
You're gonna have you want to be in

754
00:58:49.599 --> 00:58:52.320
our store, You're going to have
to lower your price, which is why

755
00:58:52.320 --> 00:58:57.679
there's so many people interested. McDonald's
came out on Friday. McDonald's has been

756
00:58:57.679 --> 00:59:00.480
struggling a little bit. They raised
price boom boom, boom boom, until

757
00:59:00.519 --> 00:59:05.760
they've now gotten to a point where
prices are too high. My wife will

758
00:59:05.840 --> 00:59:08.679
sometimes grab a McDonald's if she's out
running around or going to work or something.

759
00:59:08.719 --> 00:59:13.320
It just needs a quick meal,
and she's telling me every time she

760
00:59:13.400 --> 00:59:15.119
goes, I can't believe what I
have to pay. I can't believe I

761
00:59:15.159 --> 00:59:20.400
got this in this and it was
nine bucks or whatever. Anyway, McDonald's

762
00:59:20.400 --> 00:59:22.119
announced on Friday, and the stock, by the way, is down nine

763
00:59:22.119 --> 00:59:28.480
percent year to date, so it's
been it's been suffering. Stock gained five

764
00:59:28.519 --> 00:59:34.440
percent on Friday after they announced that
they're going to introduce a five dollars dinner,

765
00:59:35.599 --> 00:59:37.480
which is good. It's gonna be
a sandwich, fries, and a

766
00:59:38.159 --> 00:59:44.480
drink for five bucks. And that
tells you and maybe we're starting now to

767
00:59:44.559 --> 00:59:50.199
see a trend in that direction,
well with Costco and mcdonaldah. But you

768
00:59:50.199 --> 00:59:52.800
know, if you've ever seen a
five dollars meal, you realize something.

769
00:59:52.119 --> 00:59:57.400
It's called shrink flation just because you
get a burger, fries, and a

770
00:59:57.480 --> 01:00:00.079
drink. It's the burger is like
half the size of what a burger was

771
01:00:00.119 --> 01:00:05.000
ten years ago to be the dollar
menu. Yeah, the fries was tiny,

772
01:00:05.239 --> 01:00:08.039
like seven fries in there. I
mean it's yeah, it's a meal,

773
01:00:08.119 --> 01:00:13.079
but it's not the same. Then
what you know, it's they're getting

774
01:00:13.119 --> 01:00:15.440
their profit margins somehow. But no
doubt it will attract people. You sounded

775
01:00:15.519 --> 01:00:17.960
like a Seinfeld episode, You guys, don't if you guys ever watched that

776
01:00:19.400 --> 01:00:24.079
about a meal he had he had
a fellow comedian that that that that gave

777
01:00:24.159 --> 01:00:28.599
him a suit and so he needed
to treat the comedian to a meal,

778
01:00:29.159 --> 01:00:31.039
and he didn't like the comedian.
So he sucks it up and said,

779
01:00:31.079 --> 01:00:35.000
okay, we're gonna go get a
meal at this restaurant. They sat down,

780
01:00:35.079 --> 01:00:37.760
the guy goes, I'll have soup, and he goes, and Seinfeld

781
01:00:37.800 --> 01:00:44.559
goes, that's your meal. He
goes, Soup's not a meal, it's

782
01:00:44.559 --> 01:00:46.559
a it's a it's a long,
long story. What about what about a

783
01:00:46.639 --> 01:00:50.159
firm? Todd? I think you
had a little bit about the buy now

784
01:00:50.199 --> 01:00:52.960
pay laters, right, yeah,
a little bit just along the lines that

785
01:00:53.039 --> 01:00:59.280
the Fed is having trouble really you
know, uh, how do I say

786
01:00:59.280 --> 01:01:02.800
this tracking the amount of credit being
created out of the buy now, pay

787
01:01:02.880 --> 01:01:07.639
later forms? Because the issue with
buy now, pay later is, you

788
01:01:07.679 --> 01:01:13.360
don't they're not traditional banks and they're
not It's really hard for the Federal Reserve

789
01:01:13.440 --> 01:01:16.440
to really understand the risks that could
be potentially coming out of this because they're

790
01:01:16.840 --> 01:01:21.719
not sharing information with the credit unions
right now. And the reason that that

791
01:01:21.760 --> 01:01:25.079
being is the pay buy now,
pay later companies don't trust the credit unions

792
01:01:25.480 --> 01:01:30.159
to be fair to their people,
and they think that they're going to decrease

793
01:01:30.199 --> 01:01:32.079
their credit scores and blah blah blah
blah blah the other credits. And they

794
01:01:32.079 --> 01:01:36.599
also don't think they have the system
to actually track They think that they're just

795
01:01:36.639 --> 01:01:39.400
two legacy, they're too old school
now expedient. You know, all the

796
01:01:39.400 --> 01:01:43.199
top bureaus that are all saying,
no, we can handle it, We're

797
01:01:43.199 --> 01:01:45.960
not going to hurt. We just
want the information. And so there's like

798
01:01:45.000 --> 01:01:50.199
this big push back and forth on
whether we're going to share information or not.

799
01:01:50.199 --> 01:01:53.480
The only people that are sharing information
is Apple pay Later. Everyone else

800
01:01:53.599 --> 01:01:55.920
is kind of, you know,
keeping their cards close to the chest.

801
01:01:57.199 --> 01:02:00.719
So that's an interesting thing because we
don't really know what are the default risks.

802
01:02:00.760 --> 01:02:05.599
I did see some numbers on you
know, it seemed like about a

803
01:02:05.679 --> 01:02:08.039
third of the people that were on
this buy now pay later were on late

804
01:02:08.119 --> 01:02:12.079
payments or close to default. Wow. So I mean there is a lot

805
01:02:12.119 --> 01:02:14.239
of those people. I mean,
if you think about it, it's a

806
01:02:14.280 --> 01:02:19.559
really bad system because you're just you're
taking money from the future that you definitely

807
01:02:20.079 --> 01:02:22.960
it just increases how much you're going
to spend otherwise. It's a slippery slope.

808
01:02:22.960 --> 01:02:27.079
I feel, very slippery slope.
That's what a Stanford economist did a

809
01:02:27.079 --> 01:02:30.239
study on. He was looking at
it. It's like it seems good,

810
01:02:30.239 --> 01:02:34.599
but for most people in their behavioral
tendencies, it's not good. And on

811
01:02:34.679 --> 01:02:37.360
top of it, the fact that
I could use a credit card to use

812
01:02:37.440 --> 01:02:40.519
buy now Pay Later is insane.
It's like doubling up on the credit.

813
01:02:40.599 --> 01:02:43.960
Right. Well, yeah, I
think what you're saying is you can use

814
01:02:44.000 --> 01:02:46.480
your credit card to pay off your
buying out the buy now pay later,

815
01:02:46.519 --> 01:02:50.000
which is also credit. You still
have credit. It's not like you paid

816
01:02:50.000 --> 01:02:52.239
off anything, yeah, which you
know for a lot of people, that's

817
01:02:52.280 --> 01:02:55.039
what banks do. They're just using
credit to pay off credit. You had

818
01:02:55.079 --> 01:02:58.239
a cool term for it earlier.
What'd you call it? Ghost credit?

819
01:02:58.599 --> 01:03:04.519
Was that? What it was?
Not? Phantom credit? It? Yeah,

820
01:03:04.599 --> 01:03:08.360
it's it's it's an interesting space and
it doesn't matter the price of the

821
01:03:08.480 --> 01:03:13.360
object that you're buying. I happened
to notice the other day was something I

822
01:03:13.400 --> 01:03:16.840
was looking at one hundred and eighty
dollars or five payments right right, really,

823
01:03:17.039 --> 01:03:20.440
and they're no interest, so they're
not making money on interest. What

824
01:03:20.480 --> 01:03:23.639
they're making money on is the merchant
fee. So the merchant is selling a

825
01:03:23.639 --> 01:03:28.559
product that they know they wouldn't otherwise
be selling, so that the buy now

826
01:03:28.559 --> 01:03:30.599
pay later gets kind of a door
dash deal. Yeah. Now, if

827
01:03:30.639 --> 01:03:34.199
you don't pay on time, you
are going to be charged interest that's that's

828
01:03:34.199 --> 01:03:37.119
how they make money on that side. But ultimately, like Todd said,

829
01:03:37.119 --> 01:03:39.440
they make money off the merchant.
Interesting, so there is no interest payment

830
01:03:39.480 --> 01:03:42.960
on it, not right off the
bat. No. So it sounds really

831
01:03:42.960 --> 01:03:47.840
cool, but you know the problem
is we know people aren't responsible. You

832
01:03:47.920 --> 01:03:54.039
think your name from the past that
that popped up again last week is Nova

833
01:03:54.119 --> 01:04:00.280
vax. Oh, this is this
is amazing. This we've we've had had

834
01:04:00.360 --> 01:04:03.920
a client that trades this and he's
made money, he's lost money. It's

835
01:04:03.960 --> 01:04:13.079
one of the wilder stocks revolving around. Covid there is down fifty percent over

836
01:04:13.119 --> 01:04:18.599
the last twelve months, and actually
had issued a going concern warning in January.

837
01:04:18.760 --> 01:04:21.880
And what that is is that's a
warning that you put out when there

838
01:04:23.000 --> 01:04:27.320
is a good chance that you won't
be here, you won't be in business.

839
01:04:27.320 --> 01:04:32.039
So they were under a going concern
since January. Friday, they announced

840
01:04:32.039 --> 01:04:40.599
a multi billion dollar partnership with French
drug maker Sanofi to commercialize the company's COVID

841
01:04:40.679 --> 01:04:46.400
vaccines starting in twenty twenty five and
develop a combination covid flu vaccine. Stock

842
01:04:46.480 --> 01:04:51.039
more than doubled. Still worried,
Yeah, I mean, is there really

843
01:04:51.119 --> 01:04:55.079
there? That is there? That
kind of demand for a covid vaccine because

844
01:04:55.119 --> 01:05:01.480
Astrosenika, another very large international company, with drawing all of their covid vaccines

845
01:05:01.519 --> 01:05:06.559
worldwide due to a drop in demand
as numerous vaccines have been developed for the

846
01:05:06.800 --> 01:05:12.440
variants. Nova Vax has a high
DOT of three hundred and thirty one dollars

847
01:05:12.960 --> 01:05:16.039
in February twenty one, three hundred
thirty one dollars a low three dollars and

848
01:05:16.079 --> 01:05:19.239
fifty cents. Yeah, I think
you might have missed something though, because

849
01:05:19.519 --> 01:05:24.519
what they're trying to do with this
merger is make a flu covid vaccine,

850
01:05:24.760 --> 01:05:29.360
one that's merged into one of flu
covid. I said, I said cold.

851
01:05:29.480 --> 01:05:31.280
It's not just covid that they're trying
to come out with. I know,

852
01:05:31.280 --> 01:05:33.880
it's a combination. Yeah, so
that would be I said, covid

853
01:05:34.199 --> 01:05:36.960
cold, and it's covid. No, you said the right thing to are

854
01:05:36.960 --> 01:05:42.719
you saying Are you saying astrozenica?
No? No, I'm king I'm saying

855
01:05:42.719 --> 01:05:48.800
that that they're cold. They're teaming
up with Anofi to develop this first of

856
01:05:48.840 --> 01:05:55.519
all, to commercialize their covid vaccine
number one and number two. Yeah,

857
01:05:55.679 --> 01:05:59.719
there's two parts. This number two
is to come up with a new vaccine

858
01:05:59.719 --> 01:06:01.360
that also no one will take.
And then while on the other side you

859
01:06:01.400 --> 01:06:03.639
have astrozenica. Well, I mean
taking out of it. Hold on,

860
01:06:03.760 --> 01:06:06.519
let me just say this, Because
you say you take the flu vaccine because

861
01:06:06.519 --> 01:06:13.360
of the health benefits. I take
the flu vaccine because about twenty years ago

862
01:06:13.559 --> 01:06:18.840
I read an article that the flu
vaccine decreases the chances of sudden cardiac death

863
01:06:18.880 --> 01:06:21.519
by fifty percent. I'm going,
okay, I'll take it. Right,

864
01:06:21.599 --> 01:06:26.159
So, if you could only get
flu vaccines that also had covid in it

865
01:06:26.199 --> 01:06:29.440
from itself, but how many people
don't want anything to do with covid vaccine,

866
01:06:29.440 --> 01:06:30.679
Well, maybe that's not a choice. I'll get the flu vaccine,

867
01:06:30.679 --> 01:06:34.360
but I'm not one one mixed with
covid vaccine. No, right, And

868
01:06:34.440 --> 01:06:39.440
I don't have any concerns about covid
and maybe they just lump it into one.

869
01:06:39.559 --> 01:06:44.320
It just seems that they're pretty excited
about it. But remember, but

870
01:06:44.360 --> 01:06:47.000
it's interesting they only about five percent
of the company, Yeah, which is

871
01:06:47.039 --> 01:06:50.159
like, how does that make a
big difference. I mean, sure,

872
01:06:50.159 --> 01:06:55.159
you get an influx of cash.
The big difference is nova vax will now

873
01:06:55.280 --> 01:06:59.760
survive for a time. Maybe the
good news or the bad news, because

874
01:06:59.800 --> 01:07:04.480
the company has never come up with
a commercial product ever. And just be

875
01:07:04.559 --> 01:07:11.679
careful, they've they've failed on multiple
occasions to deliver multiple drugs. Now,

876
01:07:11.840 --> 01:07:17.000
No Vote Nordisk, they just invested
two hundred million dollars into what quantum computing,

877
01:07:17.760 --> 01:07:21.880
yep, quantum technologies. They what
a lot of people don't know.

878
01:07:21.920 --> 01:07:25.400
I didn't know this, No Vote. They always think of it as a

879
01:07:25.440 --> 01:07:29.719
healthcare company, but actually it's a
foundation, and Nova Nordist is a foundation

880
01:07:29.800 --> 01:07:34.199
that's really designed to help promote human
society growth. Okay, So they invest

881
01:07:34.239 --> 01:07:39.239
in technologies that they think could help
life sciences, things like that. And

882
01:07:39.280 --> 01:07:44.719
so they there's a big hub of
quantum technology creation going on in Denmark right

883
01:07:44.719 --> 01:07:48.400
now apparently, and this is part
of their initiative to help fund that hub,

884
01:07:48.440 --> 01:07:50.800
and they're going to put two hundred
million dollars into this space. It's

885
01:07:50.840 --> 01:07:55.760
kind of like think about Silicon Valley
right at Silicon Value over there for quantum

886
01:07:55.760 --> 01:08:00.719
computing. Why is this so potentially
valuable for Nova Nordisks. It's for the

887
01:08:00.760 --> 01:08:06.280
healthcare applications. Many times I've heard
AI you know, experts say that when

888
01:08:06.320 --> 01:08:12.920
you have quantic computing, you can
test thousands of different variations of a vaccine

889
01:08:13.360 --> 01:08:17.399
instantly or very quickly in comparison to
chesting on humans. Not only that you

890
01:08:17.439 --> 01:08:23.880
can test different compound structures of a
vaccine. Does this compound make this effect?

891
01:08:24.079 --> 01:08:26.760
You can do so many more tests, so much more quickly and have

892
01:08:26.800 --> 01:08:31.279
more effectiveness as well. Affected you
know that the vaccine actually works for whatever

893
01:08:31.319 --> 01:08:34.399
it's trying to be used for,
or whatever the health product is trying to

894
01:08:34.439 --> 01:08:38.640
be used for. You can have
actual data not just based on a small

895
01:08:38.680 --> 01:08:43.840
sample size of humans, but based
on a quantic computing that basically looks as

896
01:08:43.880 --> 01:08:47.920
a human rights It has the same
biological inputs that a human would have,

897
01:08:48.079 --> 01:08:50.920
and the only thing that you could
use that with is quantic computing. The

898
01:08:51.439 --> 01:08:56.600
computers today don't have that and much
data available to them to calculate all the

899
01:08:56.600 --> 01:09:00.199
different sequences that could happen, But
with quantic computing becomes possible. So that's

900
01:09:00.199 --> 01:09:03.000
why they're putting so much money into
it, and every country in the world

901
01:09:03.119 --> 01:09:06.199
is trying to be the first yep, because it's going to give you a

902
01:09:06.239 --> 01:09:10.520
real advantage over the rest of the
world. Did you know Novo's a top

903
01:09:10.560 --> 01:09:13.720
ten company in market cap in the
world. Really, yeah, I didn't

904
01:09:13.720 --> 01:09:15.720
know that. I think they're nine. Wow, aften a company in the

905
01:09:15.720 --> 01:09:19.840
world. Speaking of top ten companies
that are not top ten in the world

906
01:09:19.880 --> 01:09:25.239
would be Peloton, down fifty five
percent in the last twelve months, hit

907
01:09:25.279 --> 01:09:30.680
an all time low May second,
but jump seventeen percent on Tuesday. This

908
01:09:30.800 --> 01:09:34.800
is a CNBC reported that a private
equity firms are considering taking the company private.

909
01:09:35.800 --> 01:09:40.119
And my thought, my thought with
that is they better hurry before they

910
01:09:40.159 --> 01:09:44.159
go out of business. That was
right after the CEO stepped down, right,

911
01:09:44.319 --> 01:09:46.159
yes, yeah, it's it's a
mess. It's a mess. They

912
01:09:46.199 --> 01:09:50.560
just could never recover from growing too
fast and try to take advantage of the

913
01:09:50.640 --> 01:09:55.960
craze when the gyms were shut down
and they expanded this ridiculous littlemount during twenty

914
01:09:55.960 --> 01:09:58.960
twenty twenty twenty one, and they
can never recover. And that's what that's

915
01:09:58.960 --> 01:10:01.119
why the first CEO of the founder
step down. And they're still struggle because

916
01:10:01.119 --> 01:10:04.079
I know people with Pelotons, they
love them, but they're not selling like

917
01:10:04.119 --> 01:10:06.840
they used to because you go to
a gym my daughter, My daughter loves

918
01:10:06.880 --> 01:10:10.399
hers as well, and I think
people were giving a choice would like to

919
01:10:10.399 --> 01:10:13.520
go to the gym and would like
to interact with other human beings. It's

920
01:10:13.560 --> 01:10:15.720
just kind of the way it is
that they were thinking. I mean,

921
01:10:15.880 --> 01:10:18.239
I remember when we were talking about
in twenty twenty, you had hesitancy about

922
01:10:18.239 --> 01:10:21.079
people were not going to go back
to gyms. They're yeah, they're gonna

923
01:10:21.079 --> 01:10:24.600
reopen gyms, but why would they
go back. They got Peloton. Now

924
01:10:24.920 --> 01:10:29.800
they have Peloton doing yoga, they
have Peloton doing strength X classes on the

925
01:10:29.840 --> 01:10:31.119
TV. You don't need to go
to gyms. You're not going to go.

926
01:10:31.239 --> 01:10:34.399
And then obviously people want to go
to gyms. Now I'm just seeing

927
01:10:34.439 --> 01:10:38.399
a lot more people wanting to go
to boutique type gyms like Got forty five

928
01:10:38.439 --> 01:10:41.399
and that type of deal, which, yeah, those are those are expensive,

929
01:10:41.479 --> 01:10:44.199
Yeah they are, Yeah, they're
very expensive. What's called Orange Stery

930
01:10:44.800 --> 01:10:48.319
forty five all that stuff. Soule
cycle, yeah, rockets room. I

931
01:10:48.319 --> 01:10:51.880
have a friend of mine who said
everyone should have a Peloton in their house

932
01:10:53.279 --> 01:10:58.399
because it's a fantastic place to hang
close and if you think about it,

933
01:10:58.399 --> 01:11:02.840
it's a good workout. My daughter
swears by it, and you know,

934
01:11:02.920 --> 01:11:08.479
she's she's done marathons and stuff,
and she she has her Peloton bike and

935
01:11:08.479 --> 01:11:13.319
she's on that thing every single day. And uh and and sad as she

936
01:11:13.520 --> 01:11:16.319
sad as she misses the day.
Apple, the largest company in the world

937
01:11:16.439 --> 01:11:18.800
or second largest company in the world, depend on what day it is,

938
01:11:19.600 --> 01:11:25.159
hit the highest level since February after
strong earnings and announcing the development of an

939
01:11:25.239 --> 01:11:29.279
AI chip, and if you want
to give your stock up boost, simply

940
01:11:29.359 --> 01:11:34.319
mentioned weight loss or AI. Late
last week though with that new I pad

941
01:11:34.359 --> 01:11:38.800
commercial, but we'll talk about that
more on the other break days. Back

942
01:11:38.840 --> 01:11:42.960
after the break. Appreciate your listening
on this Sunday morning, and we'll be

943
01:11:43.039 --> 01:11:45.079
back with more of the Money Matters
Show. Got the whole crew with us,

944
01:11:45.159 --> 01:11:48.199
and we thank you for listening.
Welcome back to the Money Matter Show.

945
01:11:48.199 --> 01:11:50.840
My name is Sebastian borers Seni.
I'm here with Dave Sherwood, Dylan

946
01:11:50.880 --> 01:11:56.119
Greenberg, and Todd Glick Junior.
How we doing. What's going on,

947
01:11:56.159 --> 01:11:59.079
guys, Well, we were talking
for the break just Apple. They had

948
01:11:59.079 --> 01:12:02.560
an issue a pole for that new
iPad commercial where they smashed a bunch of

949
01:12:02.600 --> 01:12:08.640
old like creativity items like guitars,
books, all the old school stuff is

950
01:12:08.640 --> 01:12:13.039
smashed it all into one iPad.
The commercial and they had to apologize because

951
01:12:13.079 --> 01:12:20.199
they had so much backlash about destroying
traditional creativit creative items is an analogy to

952
01:12:20.279 --> 01:12:24.039
people. Yeah, I know,
but the Apple had to apologized. They

953
01:12:24.039 --> 01:12:26.600
said, ah, we missed the
mark the stock with down on Friday.

954
01:12:27.119 --> 01:12:30.159
It's a little exaggeration if you ask
me. They were trying to recreate the

955
01:12:30.720 --> 01:12:35.640
classic commercial from forty years ago with
a throwing the sledgehammer into the screen there.

956
01:12:35.760 --> 01:12:40.439
Yeah, pretty much trying to do
that somewhat. Yeah, how'd you

957
01:12:40.479 --> 01:12:42.560
get some Yeah, So, you
know, last week we talked a little

958
01:12:42.560 --> 01:12:45.560
bit about annuities. Something to bring
back up because it is a complicated space

959
01:12:45.600 --> 01:12:50.720
and we continue to hear it from
other people in the industry. For those

960
01:12:50.800 --> 01:12:56.600
who don't understand that's going on,
there is a new regulatory kind of burden

961
01:12:56.680 --> 01:13:00.359
being set on all financial planners and
it's still not set. You know,

962
01:13:00.399 --> 01:13:02.560
it's still kind of you know,
lawyers are reading through the papers. But

963
01:13:02.600 --> 01:13:06.640
what it is going to do is
make annuity salesman's jobs a lot harder because

964
01:13:06.640 --> 01:13:11.720
they're going to have to start proving
why they're doing certain things, especially for

965
01:13:13.239 --> 01:13:17.640
four one k ira type of annuities. So this is where I'm excited by

966
01:13:17.640 --> 01:13:21.239
that role, but also not excited
because there's going to be more regulation put

967
01:13:21.239 --> 01:13:25.000
on the industry as a whole,
which ends up really just hurting the client.

968
01:13:25.319 --> 01:13:29.560
But I did put an analysis on, you know, just what does

969
01:13:29.560 --> 01:13:32.840
a CAP product really get you?
And it's kind of hard because each product

970
01:13:32.880 --> 01:13:36.720
will have different caps. And if
you start an annuity back when interest rates

971
01:13:36.760 --> 01:13:40.119
were super low, your caps are
going to be super low. You want

972
01:13:40.119 --> 01:13:42.560
to explain caps? Yeah, so
caps is, you know, in a

973
01:13:42.600 --> 01:13:46.079
fixed indexed annuity is something where it's
going to be tied to the index.

974
01:13:46.159 --> 01:13:49.079
Let's use the S and P five
hundred. So what the annuity company is

975
01:13:49.079 --> 01:13:53.039
going to say is you're guaranteed not
to lose any money in any given year,

976
01:13:53.520 --> 01:13:57.159
but you can only participate on the
S and P five hundreds market growth

977
01:13:57.239 --> 01:14:00.720
up to let's say ten percent,
so you would be ten percent, which

978
01:14:00.720 --> 01:14:02.880
means you can never make more than
ten but you can also you're not going

979
01:14:02.960 --> 01:14:09.399
to lose any many gross of fees. So the issue with that is caps

980
01:14:09.520 --> 01:14:14.359
change, and newity companies change their
caps based on interest rates and they want

981
01:14:14.399 --> 01:14:19.199
to There was actually a really interesting
site I came across that backtracked, We

982
01:14:19.359 --> 01:14:28.279
back tested the accumulative return of these
large cap indexed products, and the average

983
01:14:28.279 --> 01:14:31.479
cap you know, it changes,
so this it flucked. This back test

984
01:14:31.560 --> 01:14:36.600
fluctuates the caps as it would based
on the interest rate environment. So all

985
01:14:36.640 --> 01:14:42.920
in all, back going to two
thousand and six, the cumulative return for

986
01:14:43.000 --> 01:14:48.800
a spy capped product would have been
forty percent. Whereas whereas if you were

987
01:14:48.800 --> 01:14:53.000
in this the broad s and P
five hundred, you went down with the

988
01:14:53.039 --> 01:14:55.359
market in two thousand and eight,
you came back up, you had all

989
01:14:55.439 --> 01:14:58.880
the turmoil and volatility. Well guess
what, at the end of it,

990
01:14:59.000 --> 01:15:02.159
you were up two hundred sixty four
percent. So you were up two hundred

991
01:15:02.199 --> 01:15:08.119
and twenty four percent more than you
would be with annuity. And that's with

992
01:15:08.359 --> 01:15:12.399
a two thousand and eight drop,
that's with a twenty twenty thirty percent sell

993
01:15:12.439 --> 01:15:15.840
off, that's with the twenty twenty
two drop in bonds and stocks. So

994
01:15:15.880 --> 01:15:19.720
what you start to realize is over
a long period of time, you're never

995
01:15:19.800 --> 01:15:26.520
gonna well, you're not gonna make
as much money in a CAPPS product because

996
01:15:26.560 --> 01:15:31.319
you're paying for that decrease in risk. Okay, whether it be fees,

997
01:15:31.560 --> 01:15:35.159
whether it be them changing the caps
because of interest rates. There's a lot

998
01:15:35.199 --> 01:15:42.119
of things built into these products that
make them hard to compete with traditional stock

999
01:15:42.159 --> 01:15:45.439
markets. Okay, it's because of
caps. Now on top of all this,

1000
01:15:45.520 --> 01:15:48.039
you'll hear a lot of annuity salesmen
say, hey, you get these

1001
01:15:48.079 --> 01:15:51.800
bonuses that make these caps. Side, it sound like they don't really matter.

1002
01:15:53.000 --> 01:15:55.199
If I don't have a six percent
cap, who cares? I get

1003
01:15:55.199 --> 01:15:58.279
these great bonuses. On the other
side, The thing to keep in mind

1004
01:15:58.359 --> 01:16:02.159
is these bonuses might be on income
base, which is income money you should

1005
01:16:02.239 --> 01:16:08.079
might they are, well, it
can be sometimes vested bonuses, which means

1006
01:16:08.079 --> 01:16:12.000
you have to hold the annuity for
five years to actually get whatever bonus they

1007
01:16:13.119 --> 01:16:16.600
promised you to your accumulated value.
Accumulated value is your real value and the

1008
01:16:16.600 --> 01:16:23.079
annuity that's the money you can take
out minus any surrendered penalty fees right now.

1009
01:16:23.119 --> 01:16:26.640
The income based value, that's the
value that the annuity company is using

1010
01:16:26.840 --> 01:16:30.319
to calculate what annualized, guaranteed lifetime
payment they're going to give you for the

1011
01:16:30.319 --> 01:16:33.800
rest of your life. And that's
based on your age and the income value

1012
01:16:33.840 --> 01:16:38.399
at the time. So as you
got older, they have more they can

1013
01:16:38.439 --> 01:16:41.560
offer you as you're younger, the
less they can offer you, and interest

1014
01:16:41.640 --> 01:16:44.279
rates are higher, the more they
can offer you. Interest rates are lower,

1015
01:16:44.319 --> 01:16:47.119
the less they can offer you.
That's how these annuity companies work.

1016
01:16:47.359 --> 01:16:51.399
So it really is something to keep
in mind. Just because you love the

1017
01:16:51.439 --> 01:16:56.039
idea of guaranteed no loss in the
long run, we have a lot of

1018
01:16:56.079 --> 01:17:00.439
people come in they honestly don't they
wish they kindsight being twenty twenty didn't get

1019
01:17:00.479 --> 01:17:03.840
an annuity because even though it might
have protected them for a couple of the

1020
01:17:03.920 --> 01:17:08.760
years where the market was down,
overall they've lost a lot of money on

1021
01:17:08.800 --> 01:17:11.600
the table, a lot of money
that they didn't make, not that they

1022
01:17:11.640 --> 01:17:14.680
lost, but well left a lot
of money let's say opportunity cost right.

1023
01:17:15.199 --> 01:17:20.960
And as a rule of thumb,
anytime you're having a guard key of no

1024
01:17:21.079 --> 01:17:25.920
downside, you're going to give up
something. Yeah, it's the only way

1025
01:17:25.960 --> 01:17:29.319
it works well, right, because
the max drawed down for the large cap

1026
01:17:29.439 --> 01:17:31.960
for the spy was fifty six percent. Sure, and the innuity company is

1027
01:17:32.000 --> 01:17:35.880
always going to win. The innuity
company is like the casino. They are

1028
01:17:35.960 --> 01:17:41.880
the house. They're always going to
win. I remember years ago we decided

1029
01:17:41.920 --> 01:17:45.359
that there was just one annuity and
it was it had a ten percent upside

1030
01:17:45.840 --> 01:17:49.079
with no downside, and it's boy, that's got to be a ganga.

1031
01:17:49.399 --> 01:17:54.600
And here and a year later when
it renews, the cap has dropped eight.

1032
01:17:55.159 --> 01:17:59.079
Wait, wait a second, our
cap is ten not anymore now it's

1033
01:17:59.079 --> 01:18:02.800
eight six. Then that was four. Yeah, and I think you know

1034
01:18:02.880 --> 01:18:08.840
someone you know what you know what? A risk adjusted return is a return

1035
01:18:08.960 --> 01:18:12.159
that's adjusted for risk, right,
right, And so these metrics came out

1036
01:18:12.159 --> 01:18:15.159
that the the caps product came in
at point sixty three and the spy came

1037
01:18:15.159 --> 01:18:20.359
in at point three nine. So
actually the annuity gave you a better risk

1038
01:18:20.399 --> 01:18:26.520
adjusted return according to their numbers.
But the annualized return for the S and

1039
01:18:26.640 --> 01:18:30.239
P during this time with seven point
seven four percent the annuity one point ninety

1040
01:18:30.279 --> 01:18:35.960
seven. If you have, if
you're an extremely risk adverse person where you

1041
01:18:36.119 --> 01:18:40.760
just cannot tolerate downside, and there
there's you know, that's why they have

1042
01:18:40.840 --> 01:18:43.560
banks, right, So there's a
lot of people out there that are that

1043
01:18:43.600 --> 01:18:46.399
way. There's nothing wrong with that, it's just who you are. I

1044
01:18:46.399 --> 01:18:51.439
think you have to I think an
annuity has a place there because if if

1045
01:18:51.680 --> 01:18:58.319
that's the only way that you can
get stock market exposure is through something that

1046
01:18:58.359 --> 01:19:03.359
has a guaranteed no doubt, and
yes it's capped, you're probably going to

1047
01:19:03.479 --> 01:19:08.760
overtime do better than you're going to
do in most fixed income products. Yeah,

1048
01:19:09.039 --> 01:19:13.520
So we're not saying annuities are bad. They're not good, bad,

1049
01:19:13.600 --> 01:19:16.159
or indifferent. It's what's appropriate for
people. Well, they're not for everybody,

1050
01:19:16.199 --> 01:19:19.720
and that's why it's a big part
of discussion when we do the financial

1051
01:19:19.760 --> 01:19:24.319
plan. Is an annuity needed and
we don't want to put too much into

1052
01:19:24.319 --> 01:19:27.199
annuity, regardless of how much you
have in there, but if it might

1053
01:19:27.199 --> 01:19:30.399
be needed for depending on your situation. If you need a bridge a gap

1054
01:19:30.399 --> 01:19:32.880
between expenses and income during retirement,
that's a big need for it, or

1055
01:19:32.880 --> 01:19:36.399
if you are scared of the markets
downturn, you can't put some in for

1056
01:19:36.920 --> 01:19:41.680
protection, and that's something we talk
about during that whole financial planning process.

1057
01:19:41.920 --> 01:19:45.119
I think something to point out as
well is all these numbers don't include any

1058
01:19:45.119 --> 01:19:47.720
annuity fees. They're just including caps
sure and what the performance would be if

1059
01:19:47.960 --> 01:19:53.119
caps were implemented let alone. Most
products have fees. Now some don't,

1060
01:19:53.119 --> 01:19:56.960
don't get me wrong, but most
annuity products have fees that also drag the

1061
01:19:57.000 --> 01:20:01.720
performance more. Without a doubt,
over the last of fifty years. Uh,

1062
01:20:01.960 --> 01:20:08.159
the most successful investment you could have
made is one in the S and

1063
01:20:08.199 --> 01:20:11.800
P five hundred and leave it alone. Well, most people can't do that.

1064
01:20:11.840 --> 01:20:15.880
Wow, what you know QQQ Okay, Well, yeah, you're saying

1065
01:20:15.159 --> 01:20:18.840
I always said, I mean,
yeah, it comes into ken you handle

1066
01:20:18.880 --> 01:20:23.279
that volatility absolutely. I mean wise, if you're one hundred percent of the

1067
01:20:23.319 --> 01:20:25.720
S and P five hundred coming into
two thousand and eight and you're getting ready

1068
01:20:25.760 --> 01:20:28.359
to retire, yeah, that's bad
timing and you don't want to be that

1069
01:20:28.399 --> 01:20:31.159
aggressive because you're starting to need that
money to produce income for you in a

1070
01:20:31.199 --> 01:20:34.600
couple of years. If you're just
young and you're starting out with a roth

1071
01:20:34.640 --> 01:20:39.039
Ira or something like that and you're
eighteen, yeah, it's a smart idea

1072
01:20:39.079 --> 01:20:41.640
to put it into it. Obviously, you just have to kind of shut

1073
01:20:41.680 --> 01:20:44.319
your brain off towards it though,
because it is going to be volatile,

1074
01:20:44.640 --> 01:20:45.760
and you've seen in the last fifty
years it is volatile. But at the

1075
01:20:45.840 --> 01:20:48.479
end of the day it has gone
up. Yeah. I mean for my

1076
01:20:48.479 --> 01:20:53.800
my little sister who's just twenty years
old, it's S and p half half

1077
01:20:53.880 --> 01:20:57.520
QQQ, which is NASDAQ one hundred
and so. Yeah, for someone who

1078
01:20:57.600 --> 01:21:00.800
has fifty plus years until you know
they're potentially drive your forty and you're not

1079
01:21:00.880 --> 01:21:05.279
pederal to the medal you need to
be. Yeah, I mean, unless

1080
01:21:05.319 --> 01:21:09.319
you're saving for a short term goal, right, if it's for retirement.

1081
01:21:09.399 --> 01:21:13.319
If it's for retirement, it should
be for retirement accounts. If you have

1082
01:21:13.640 --> 01:21:15.640
like if you're trying to say for
a house, that's going to be much

1083
01:21:15.640 --> 01:21:17.720
more conservative if even in the markets
at all, you don't want it necessarily

1084
01:21:17.760 --> 01:21:21.600
in the markets, if you want
the money within six months to twelve months

1085
01:21:21.920 --> 01:21:26.079
because of fluctuations and volatility. Yeah, I agree, And I think that's

1086
01:21:26.079 --> 01:21:29.239
why it's so appoint of going back
to the financial plan to also look back

1087
01:21:29.239 --> 01:21:32.560
on the risk tolerance. Sometimes people
think they're cautious people and then they come

1088
01:21:32.640 --> 01:21:36.039
and take the risk tolerance and they're
not. And it's just kind of they're

1089
01:21:36.079 --> 01:21:39.840
not thinking about stocks in the right
way, or they're not they haven't been

1090
01:21:39.920 --> 01:21:43.279
educated, so they don't feel comfortable. But when they do become educated,

1091
01:21:43.479 --> 01:21:45.399
they don't see the risk that they
once did. But when they weren't educated,

1092
01:21:45.439 --> 01:21:49.039
And if you haven't done a financial
plan, you should do what you'll

1093
01:21:49.039 --> 01:21:51.880
give us a call five two zero
five four four four nine zero nine.

1094
01:21:51.920 --> 01:21:55.479
It's very easy. We find a
time on the calendar. We'll send you

1095
01:21:55.520 --> 01:21:59.000
a list that will want you to
gather and then you'll get the financial report,

1096
01:21:59.079 --> 01:22:00.760
you'll get the risk till questionnaire.
In the second meeting, you'll get

1097
01:22:00.840 --> 01:22:04.760
a whole recommendation, suggestion breakdown for
your plan, what we would do,

1098
01:22:04.840 --> 01:22:06.920
how we would do it. If
you want to move forward, you can

1099
01:22:06.960 --> 01:22:10.239
do it. If you don't,
you can keep it do it yourself.

1100
01:22:10.279 --> 01:22:13.239
But otherwise, we're here to educate. We're here to help, so please

1101
01:22:13.319 --> 01:22:16.079
use the service. It's really what
we pride ourselves on here, and that's

1102
01:22:16.119 --> 01:22:19.239
why we think it's prudent to have
it be complimentary, be free, because

1103
01:22:19.239 --> 01:22:23.560
we're just here to educate and here
to help get everybody on the right track

1104
01:22:23.560 --> 01:22:27.680
to retirement and then how to live
during the retirement well. Willing to take

1105
01:22:27.720 --> 01:22:32.000
that risk in the hope that you'll
find us a knowledgeable and accommodating and wanted

1106
01:22:32.000 --> 01:22:34.760
to do business with us. And
one of the unique things is we're actually

1107
01:22:34.800 --> 01:22:39.399
the ones managing money. You know. We talked last week how we took

1108
01:22:39.439 --> 01:22:43.680
off the SDS and so it had
a great run up, right, and

1109
01:22:43.720 --> 01:22:45.640
now it looks like potentially we need
to put it back on next week.

1110
01:22:45.680 --> 01:22:49.359
And those are the type of active
trading, those tactical moves that a lot

1111
01:22:49.359 --> 01:22:53.119
of money managers they either can't make
or they just don't want to make.

1112
01:22:54.039 --> 01:22:58.720
We could spend an entire show talking
about the kinds of moves that we've made

1113
01:22:58.840 --> 01:23:05.279
that to benefit people. Yeah,
but we are absolutely hands on on top

1114
01:23:05.319 --> 01:23:13.000
of things, talking every single day
about the best way to enhance our client's

1115
01:23:13.119 --> 01:23:19.159
value. And the you have some
times have change of thoughts. Yeah,

1116
01:23:19.239 --> 01:23:23.359
don't do that to an old person. Well, you know, I think

1117
01:23:23.399 --> 01:23:26.119
what it's most important is, like
you said, that, we are the

1118
01:23:26.159 --> 01:23:30.439
actual ones doing the money management,
and we can throw you several different examples

1119
01:23:30.479 --> 01:23:32.840
of what we're doing while we're doing
it. But at the end of the

1120
01:23:32.920 --> 01:23:35.399
day, it comes down to trust. And the only way you can trust

1121
01:23:35.439 --> 01:23:38.920
someone is For the people who've been
listening to us for years and years on

1122
01:23:38.960 --> 01:23:41.479
the show, they come in,
it's a lot easier for them to trust.

1123
01:23:41.520 --> 01:23:43.760
But some people they just meet us, right, and the only way

1124
01:23:43.800 --> 01:23:46.119
that we can show them to get
their trust is do the full financial plan,

1125
01:23:46.319 --> 01:23:49.520
show them that we understand them,
that we understand their goals and values,

1126
01:23:49.640 --> 01:23:53.920
and we understand how to get them
most efficiently, because that's our profession,

1127
01:23:54.119 --> 01:23:56.800
and the more our clients make,
the more we make. We're on

1128
01:23:56.840 --> 01:23:59.560
the same side of the table.
We're all on the same team. Regardless

1129
01:23:59.560 --> 01:24:02.760
of what fish Sure says, they're
not different. We're all kind of doing

1130
01:24:02.800 --> 01:24:06.279
this the same way, right,
and we like to think we do it

1131
01:24:06.319 --> 01:24:10.840
a little bit better. So we'll
be back right after this break. Welcome

1132
01:24:10.840 --> 01:24:14.199
back. You listen to the final
segment of the Money Matter Show. We've

1133
01:24:14.199 --> 01:24:16.039
been having a lot of conversations going
on with the market. Somewhere they're gonna

1134
01:24:16.039 --> 01:24:19.119
go. You know, we had
a last last week, really last couple

1135
01:24:19.119 --> 01:24:25.560
of weeks, I mean March was
what your your page has oils And no,

1136
01:24:25.680 --> 01:24:29.600
that's not up there, so I'm
not looking at it. Confused,

1137
01:24:29.600 --> 01:24:31.399
I got confused, little conversation.
You're in the office. Oh, there's

1138
01:24:31.439 --> 01:24:34.880
people listening. No, No,
he was looking at my page. He

1139
01:24:34.920 --> 01:24:39.399
was wrong, but no, I
mean coming out after April is nice to

1140
01:24:39.439 --> 01:24:42.159
have a nice start to May.
So we'll see how that goes. Obviously,

1141
01:24:42.199 --> 01:24:44.039
what we were talking about too.
I mean, we talked about this

1142
01:24:44.079 --> 01:24:46.600
on the office on Friday. Is
consumer sentiment was down twelve percent but really

1143
01:24:46.600 --> 01:24:49.920
didn't even affect the markets on Friday, And it doesn't seem to affect it

1144
01:24:49.920 --> 01:24:55.720
too much. And the consumer sentiment
was down because people consumers are nervous about

1145
01:24:55.720 --> 01:25:00.119
inflation and all that jobless claims were
higher, everything like that, But you

1146
01:25:00.119 --> 01:25:04.000
know, it's not really affecting the
markets. CPI reports TAME on next Wednesday.

1147
01:25:04.000 --> 01:25:06.640
I think we probably could could go
to new highs on the s and

1148
01:25:06.720 --> 01:25:13.560
p uh the tame, Dave.
I want to see it move down a

1149
01:25:13.600 --> 01:25:16.239
couple of temps. Yeah, that's
it. I think if that happens,

1150
01:25:16.439 --> 01:25:19.800
I'm with you. Yeah, I
think that we've we've had. I should

1151
01:25:19.800 --> 01:25:25.159
have brought with me three or four
months in a row of up slowly increasing

1152
01:25:25.560 --> 01:25:29.960
inflation. Yeah, that's not I
think the Fed. I think Jerome really

1153
01:25:30.000 --> 01:25:32.680
helped the market though by saying we're
not even thinking about raising rates because if

1154
01:25:32.680 --> 01:25:36.000
this next one came in higher and
he did say something, it could it

1155
01:25:36.039 --> 01:25:40.359
could have really hurt markets. But
I think even if we have something that's

1156
01:25:40.359 --> 01:25:45.239
maybe a tick higher twenty base,
it's not gonna change the markets expectations too

1157
01:25:45.279 --> 01:25:49.199
much, because it seems like they
kind of they bombed worries with what Powell

1158
01:25:49.279 --> 01:25:51.720
said on this last meeting. What
do you think on that? The other

1159
01:25:51.760 --> 01:25:55.079
the other thing I have to remember
is the Fed is the tail of the

1160
01:25:55.159 --> 01:25:59.039
dog. The open market is going
to tell you where interest rates are.

1161
01:25:59.319 --> 01:26:02.880
And we've seen we saw interest rates
move up to five percent then drop all

1162
01:26:02.880 --> 01:26:05.880
the way down to three point nine. Now they're back to four point five

1163
01:26:06.920 --> 01:26:14.920
with a FED doing nothing. What
the Federal Reserve does impacts the rate that

1164
01:26:15.039 --> 01:26:18.720
banks charge each other for overnight loans. That's it. Will that trickle through

1165
01:26:18.800 --> 01:26:25.239
to the overall economy, sure,
but the market tries to anticipate what the

1166
01:26:25.239 --> 01:26:28.560
Fed is going to do, tries
to anticipate what Jerome Poull is thinking,

1167
01:26:29.000 --> 01:26:31.800
and generally that you'll find that the
Fed is the tail of the dog.

1168
01:26:32.319 --> 01:26:36.359
By the time they move, the
market will have already moved for you.

1169
01:26:36.640 --> 01:26:41.319
For instance, right now, if
we've gone from five to four point five,

1170
01:26:41.479 --> 01:26:45.000
we essentially have had two rate cuts. Yeah, I mean to play

1171
01:26:45.079 --> 01:26:47.199
Devil's advocate though, I mean they
raised the front end and the curve way

1172
01:26:47.239 --> 01:26:49.439
more than the back end. In
the back end came up to the front

1173
01:26:49.520 --> 01:26:54.039
end. Would be nice to see
them drop it to get a more normalized

1174
01:26:54.079 --> 01:26:58.960
yield curve. I think that's probably
the last step in this process of getting

1175
01:26:59.000 --> 01:27:01.199
through the pandemic. That's called a
bowl steepening. Right when you're lower in

1176
01:27:01.239 --> 01:27:03.640
the front end more than the back
end gets lowered, and so that's a

1177
01:27:04.159 --> 01:27:08.119
would be a really thing. We'd
reinvert the yield to back to normal.

1178
01:27:08.520 --> 01:27:12.199
It would be a very strong indicator
if we can get that two year below

1179
01:27:12.239 --> 01:27:15.840
the tenure. And really it's getting
that fed fund rate below the tenure,

1180
01:27:15.000 --> 01:27:17.920
which it's going to be a while
before we see that. It's kind of

1181
01:27:18.600 --> 01:27:24.359
economically the last thing that needs to
be fixed to say, okay, that

1182
01:27:24.520 --> 01:27:28.680
pandemic was interesting. I think the
issue though, is the trend of job

1183
01:27:28.760 --> 01:27:31.079
creations. And most of the times
with inverted you ocurage, you see that

1184
01:27:31.159 --> 01:27:34.920
job creations start to decline over time, not very rapidly, but over time,

1185
01:27:35.279 --> 01:27:38.600
and you are seeing that, you
know, we had a whole bunch

1186
01:27:38.640 --> 01:27:42.640
of non farms at the later part
about a year ago, and now it's

1187
01:27:42.720 --> 01:27:46.399
kind of slowly decreased. We're still
creating jobs. But that's the idea is

1188
01:27:46.760 --> 01:27:51.399
apparently. I was seen one that
we had an inversion in two thousand and

1189
01:27:51.439 --> 01:27:56.680
eight and then it reinverted back,
but it was about a twenty seven month

1190
01:27:56.760 --> 01:28:01.359
period that it took before we really
hit the recession. It look all recessions

1191
01:28:01.399 --> 01:28:09.119
have been followed. I've been preceded
by inverted curve, so theoretically we could

1192
01:28:09.159 --> 01:28:12.520
still see one. And inverted Yell
curve has predicted ten of the last five

1193
01:28:12.520 --> 01:28:17.000
recessions. I mean, it seems
like we have asset inflation consumer inflation,

1194
01:28:17.079 --> 01:28:20.159
but we don't have a lot of
productivity inflation. We're starting to see some

1195
01:28:20.239 --> 01:28:25.960
brown shoots, if you will.
The economy is starting to slow a little

1196
01:28:25.960 --> 01:28:30.199
bit. Traveler is starting to decline
a little bit. Most claims are starting

1197
01:28:30.239 --> 01:28:34.039
to rise a little bit. It's
early. We're not anywhere near well boy,

1198
01:28:34.119 --> 01:28:38.920
we're going into recession. But it's
the time to be cautious. I

1199
01:28:38.960 --> 01:28:42.880
think the market's close to an all
time high. It mix is way too

1200
01:28:42.920 --> 01:28:48.439
low. It mixes way it is
priced perfection. There's very little fear in

1201
01:28:48.520 --> 01:28:51.399
the market. Like you said,
Todd, de Vix is the fear indicator,

1202
01:28:51.439 --> 01:28:56.760
and it's very low, very little
fear. It's kind of like you

1203
01:28:56.800 --> 01:29:00.840
know you can make it. It's
kind of like in video when it was

1204
01:29:00.920 --> 01:29:05.000
up around nine sixty nine seventy,
right, just got to keep buying this

1205
01:29:05.079 --> 01:29:09.479
because it's going to go to whatever. Well, it's kind of stalled out

1206
01:29:09.479 --> 01:29:14.319
for the last six eight weeks despite
this the company doing great. You get

1207
01:29:14.319 --> 01:29:16.600
to a point where you're fully priced. Hey, speaking of fully priced,

1208
01:29:16.640 --> 01:29:20.840
Starbucks down twenty three percent this year, hit a two year low on Tuesday.

1209
01:29:21.439 --> 01:29:28.239
As selling that coming off that disappointing
Earnage report continues, it's in danger

1210
01:29:28.239 --> 01:29:31.000
of breaking through that two year support
and heading towards the twenty twenty lows.

1211
01:29:32.319 --> 01:29:38.159
Is it a good entry point or
is it time to stay away? Morning

1212
01:29:38.159 --> 01:29:41.920
Star has it as a four star, which is the five stars the top.

1213
01:29:42.600 --> 01:29:45.800
They have a ninety five dollars price
target, which is kind of probably

1214
01:29:45.319 --> 01:29:48.720
how I would write it up if
I had to. But our analytics have

1215
01:29:48.800 --> 01:29:54.079
it as a hold, which tells
you there's probably more interesting things out there

1216
01:29:54.079 --> 01:29:57.800
to do than Starbucks. What do
you think Starbucks? Dilling Todd, Starbucks.

1217
01:29:57.840 --> 01:30:01.039
I don't know. It's turning into
just very vauntable with China, you

1218
01:30:01.079 --> 01:30:04.600
know, that's why it's getting more. It's not so hot as I thought

1219
01:30:04.640 --> 01:30:09.760
I was on it last year.
I mean, they're opening one still on

1220
01:30:09.880 --> 01:30:13.760
average in the US every twelve or
nine hours. China they're doing the same.

1221
01:30:14.199 --> 01:30:16.560
But whenever China comes out with something, it's getting hit, it gets

1222
01:30:16.600 --> 01:30:19.479
hit hard, and it's all it
seems like every all the news is based

1223
01:30:19.520 --> 01:30:24.239
off China's rea and it's reaction off
that. It's not so much as doing

1224
01:30:24.279 --> 01:30:26.920
well in the US or anything like
that. So I mean, and also

1225
01:30:27.000 --> 01:30:32.239
what I've seen is that dust Bros. Is up roughly Yeah, they're up

1226
01:30:32.279 --> 01:30:38.560
like nine percent on Friday alone,
But is it because their earnings is because

1227
01:30:38.560 --> 01:30:41.359
of what their model is? The
no sit down, the smaller, the

1228
01:30:41.439 --> 01:30:44.560
quicker. All it is is drive
through. It's less overhead as dust Bros.

1229
01:30:44.640 --> 01:30:46.800
Model is, that turned into a
better model, and Starbarks gonna have

1230
01:30:46.880 --> 01:30:51.079
to change and redo all their stores
again. I speaking of the Chinese influence

1231
01:30:51.079 --> 01:30:55.960
on Starbucks, how about when Win
came out with it just a great quarterly

1232
01:30:56.039 --> 01:31:01.680
report, increasing sales in China,
increasing sales in Vegas. Really all the

1233
01:31:02.279 --> 01:31:10.000
several analysts increased the price, targeting
to stock drop two percent. Why do

1234
01:31:10.000 --> 01:31:15.239
you not believe China is ever going
to again become a power in the global

1235
01:31:15.239 --> 01:31:17.800
economic picture. Well, you're gonna
see some interesting China numbers. We got

1236
01:31:17.840 --> 01:31:21.319
Ali Baba next week. We got
PDD in a couple of weeks. So

1237
01:31:23.640 --> 01:31:26.039
PDD is one of those interesting ones
because you hear them all the time.

1238
01:31:26.079 --> 01:31:28.600
With Team. I'm sure a lot
of people have seen those ads. They've

1239
01:31:28.920 --> 01:31:32.439
bombarded the American consumer with as many
as as they can get on and you

1240
01:31:32.479 --> 01:31:36.279
know, famously had those three Super
Bowl ads more than any other company.

1241
01:31:36.359 --> 01:31:41.199
Yeah, so it's interesting. You
know, they killed it on last earnings

1242
01:31:42.800 --> 01:31:45.520
has gone. I'm sorry, speaking
of PDD, I actually got a text

1243
01:31:45.520 --> 01:31:48.159
message, Uh, they're trying to
hire me. Team. It was trying

1244
01:31:48.159 --> 01:31:50.680
to hire you. Yeah, we'd
like to offer you a great remote online,

1245
01:31:50.680 --> 01:31:57.079
part time full time job. Really
do whatever you want. What's what

1246
01:31:57.720 --> 01:31:59.760
you have to move to China?
No, I could do it from a

1247
01:31:59.800 --> 01:32:02.439
house. I could earn up to
fifty to three hundred dollars per day from

1248
01:32:02.520 --> 01:32:10.520
your house. Okay, it includes
that sick time, Dave, And hardly

1249
01:32:10.520 --> 01:32:13.399
a day goes by that I don't
win some free gift from somebody. All

1250
01:32:13.439 --> 01:32:15.479
I have to just click here.
In addition to maternity, paternity and other

1251
01:32:15.520 --> 01:32:19.319
statutory holidays. Regular employees are entitled
to five to fifteen days of paid anny

1252
01:32:19.439 --> 01:32:23.880
leave. If you're interested, please
call it remote. You could do whatever

1253
01:32:23.880 --> 01:32:28.560
you want. No, Wow,
it's just funny. That is that is

1254
01:32:29.720 --> 01:32:32.239
I was. I was kind of
scratching my head about Sweet Green. I

1255
01:32:32.239 --> 01:32:34.640
don't know if you guys follow that
or not. That's solid. It's a

1256
01:32:34.640 --> 01:32:40.479
healthy food restaurant, right, and
their shares have doubled this year, up

1257
01:32:40.520 --> 01:32:45.720
another forty on Friday to a new
all time high after reporting quarterly results that

1258
01:32:45.800 --> 01:32:50.239
were about what was expected. And
I'm thinking, I wonder if there was

1259
01:32:50.279 --> 01:32:57.479
a huge short position in the stock
and when the earnings came out and they

1260
01:32:57.479 --> 01:33:03.439
were okay, they covered the wow
on Friday, and this is a this

1261
01:33:03.520 --> 01:33:06.479
is a restaurant. I mean,
if there are anything like solid to go,

1262
01:33:06.600 --> 01:33:11.439
I'm down. I was in I
don't think my first the fastest growing

1263
01:33:11.439 --> 01:33:13.760
franchise. We talked about this a
couple of weeks ago in the country is

1264
01:33:13.840 --> 01:33:17.520
Cava, right, And I was
in a Cava over in Orange County and

1265
01:33:17.600 --> 01:33:21.560
I was very unimpressed. Unimpressed.
Yeah, what is it? It is

1266
01:33:21.600 --> 01:33:30.199
a Chipotle mediterrane with pas. It's
Mediterranean food. It's Mediterranean food. It's

1267
01:33:30.199 --> 01:33:33.520
a Mediterranean Chipotle. It's exactly doing
good good call, that's exactly what it

1268
01:33:33.560 --> 01:33:35.920
is. So you get your peda
sounds good to me, You get your

1269
01:33:39.640 --> 01:33:42.359
I like mediterranean food. You know
what we got all the means, we

1270
01:33:42.399 --> 01:33:45.920
got Panda, we got McDonald's.
So I walked, I walked, I

1271
01:33:45.920 --> 01:33:47.960
went in. I went and looked
at it, walked down the line,

1272
01:33:47.960 --> 01:33:49.920
and you know, and looked at
what they're doing. And I kind of

1273
01:33:49.920 --> 01:33:55.079
said, I said out a lot, apparently, oh it's a it's a

1274
01:33:55.119 --> 01:33:58.840
Mediterranean Chipotle. And the gall in
line with their kids says, yes,

1275
01:33:58.880 --> 01:34:02.920
it is in Their flavors are outstanding. Did you try it? No?

1276
01:34:03.680 --> 01:34:09.840
I was picking just what made you
unimpressed then if you didn't even try it?

1277
01:34:09.920 --> 01:34:13.319
I was picking up savage at the
restaurant next door. It was just

1278
01:34:13.439 --> 01:34:16.479
very basic. There was maybe three
or four items on the menu. It

1279
01:34:16.560 --> 01:34:19.359
was just really, flavors are good. It didn't. Yeah, I guess,

1280
01:34:19.359 --> 01:34:24.760
so I guess. So if you
have no there's one up in Phoenix.

1281
01:34:25.319 --> 01:34:28.159
And we also don't have any sweet
greens up in Phoenix. Hey guys,

1282
01:34:28.199 --> 01:34:31.000
what's going on with roadblocks? Got
hammered? Nobody wants to buy anything,

1283
01:34:31.039 --> 01:34:34.960
and I don't get it because I
thought Roadblocks was the engine for virtual

1284
01:34:35.000 --> 01:34:39.279
reality. No, the parents are
just not giving their kids the road bucks

1285
01:34:39.319 --> 01:34:42.560
they need to buy new costumes on
the road. But they're tired. They're

1286
01:34:42.600 --> 01:34:45.720
tired of their kids asking for more
gift cards to they just got hammered.

1287
01:34:45.880 --> 01:34:49.439
Like a Fortnite you would get gift
cards for a Roadblock roadbucks, it'd be

1288
01:34:49.479 --> 01:34:53.680
like on there. Yes, it's
a virtual world, Dave, but it's

1289
01:34:53.720 --> 01:34:56.840
not what you're thinking. Road itself
doesn't cost any money. It's a virtual

1290
01:34:56.840 --> 01:35:00.680
world, but it's not like what
you're thinking with meta and virtual reality and

1291
01:35:00.720 --> 01:35:04.000
things like that. Okay, so
it's like a minecraft. It's a standalone

1292
01:35:04.239 --> 01:35:08.720
think of mindcraft right now. Yeah, but if everyone could play on the

1293
01:35:08.720 --> 01:35:12.600
same game all at once, and
we can create games that we all can

1294
01:35:12.640 --> 01:35:17.640
play, and why is it falling
apart? Because people like parents were you

1295
01:35:17.680 --> 01:35:21.439
know, giving people giving their kids
money in order to buy stuff. Yeah,

1296
01:35:21.520 --> 01:35:25.479
kids don't have money to pay for
things, right, so they ask

1297
01:35:25.520 --> 01:35:27.640
their parents for it. Now the
parents are tired of them, well,

1298
01:35:27.720 --> 01:35:30.039
or the parents will have enough money
to keep giving it to the kids,

1299
01:35:30.079 --> 01:35:32.439
right, Because what we could potentially
seeing is that credit cards are getting maxed

1300
01:35:32.479 --> 01:35:35.239
out. You know whatever, you
know, Jimmy, we can't give you,

1301
01:35:35.239 --> 01:35:39.399
you know, twenty bucks for your
new roadblocks cost for your virtual costs.

1302
01:35:39.439 --> 01:35:42.039
All right, thanks for the education. It's a wrap, lub on

1303
01:35:42.119 --> 01:35:45.760
another Money Matter show. We thank
you for joining us. We all want

1304
01:35:45.760 --> 01:35:47.199
to be happy. Of course,
we want to be healthy, because if

1305
01:35:47.199 --> 01:35:49.560
we're not healthy, we won't be
happy. But at the end of the

1306
01:35:49.640 --> 01:35:55.119
day, what we're trying to do
with Greenberg Financial is bell. See you

1307
01:35:55.199 --> 01:35:55.720
next week.