The Fed Raised Interest Rates Again - Are You Prepared For What’s Next?

1 00:00:02,000 --> 00:00:06,400 Good morning everybody. It's that time again. It's Sunday morning. It's eight 2 00:00:06,400 --> 00:00:10,160 o'clock, it's seven ninety candids tea. This is Dean Greenberg and we're gonna 3 00:00:10,160 --> 00:00:13,199 bring you the Money Matter Show. We've been doing a show for a long 4 00:00:13,240 --> 00:00:16,879 time, as you know, it's been over thirty three years now, trying 5 00:00:16,920 --> 00:00:20,960 to do the same thing over and over again. And it's amazing because I 6 00:00:21,000 --> 00:00:25,359 remember the last time the dow was up fourteen days in a well, that 7 00:00:25,480 --> 00:00:30,120 was nineteen eighty seven, you hear me, nineteen eighty seven. However it 8 00:00:30,199 --> 00:00:34,640 was January and not July and and and all what had happened, but fourteen 9 00:00:34,719 --> 00:00:37,920 days in a wel we had to dio. Now, there's good positive things 10 00:00:37,920 --> 00:00:42,280 with it that the dial usually ends up higher after that three months later goes 11 00:00:42,359 --> 00:00:45,600 up there. But you know what, I'm not so sure it's gonna happen 12 00:00:45,679 --> 00:00:53,880 this time. The markets keep powering forward and powering forward. But what I've 13 00:00:53,920 --> 00:00:58,719 known, what I've seen over the years, the only thing that's making it 14 00:00:58,759 --> 00:01:03,359 goes is all the like incentive money that's still out there. The government still 15 00:01:03,400 --> 00:01:07,799 has money, it's still spending money. Well, eventually that's gonna be inflationary 16 00:01:07,879 --> 00:01:11,799 again because prices keep going higher. I don't see prices come down. I 17 00:01:11,840 --> 00:01:15,519 know on Friday the PC came down. Markets get excited. The day before 18 00:01:15,560 --> 00:01:19,519 interest rates went up, the market didn't like it and reversed all the way 19 00:01:19,560 --> 00:01:26,640 down. We're in a scenario right now that you can stay invested, but 20 00:01:26,760 --> 00:01:30,640 I wouldn't be fully invested, and we could be totally wrong. But you're 21 00:01:30,640 --> 00:01:37,920 still gonna make some money. Eventually, at some time the market will fall. 22 00:01:37,959 --> 00:01:41,200 Now here's the other thing. August, September, October are the worst 23 00:01:41,200 --> 00:01:44,359 months of the year. That time frame, whether it starts in August or 24 00:01:44,359 --> 00:01:48,599 September October doesn't much, dude much. Maybe this year woods different. I 25 00:01:48,599 --> 00:01:51,760 don't know. Maybe he's gonna keep going. So you stay with your model. 26 00:01:51,840 --> 00:01:57,840 You never sell everything. We've been mitigating risk, which obviously will hurt 27 00:01:57,879 --> 00:02:02,239 a little bit, you know, but it also gives that protection from where 28 00:02:02,239 --> 00:02:10,479 it was before. So now what you have is an opportunity to see pair 29 00:02:10,560 --> 00:02:16,439 back positions that have run outside of what your allocation is. If you said 30 00:02:16,479 --> 00:02:20,719 I don't want more than five percent in a position and now it's ten percent, 31 00:02:21,039 --> 00:02:23,400 you got to cut it back. Yes, you don't have to cut 32 00:02:23,400 --> 00:02:25,159 it back to five. That's a good idea, but maybe cut it back 33 00:02:25,159 --> 00:02:32,479 to seven. Have some cash, learn how to mitigate risk, because at 34 00:02:32,520 --> 00:02:36,280 Sunday, just like yesterday, when the market was all the way up and 35 00:02:36,319 --> 00:02:38,479 one down, we could have gone down another day. And then then the 36 00:02:39,199 --> 00:02:45,439 motivation, the mental part of it, everything changes and then the selling comes 37 00:02:45,479 --> 00:02:47,800 in, and then the computers hit the selling phograms and next thing you know, 38 00:02:47,879 --> 00:02:52,960 you're down five to six seven percent and you're like, wow, what 39 00:02:53,039 --> 00:02:55,400 happened? And you need cash to do in the Other thing is, I'm 40 00:02:55,439 --> 00:03:00,719 going to talk about this later, a little later on, is that there's 41 00:03:00,800 --> 00:03:05,479 always opportunities. The guy's coming to me this week. You know, we 42 00:03:05,599 --> 00:03:07,639 just got in some new money. What are we gonna do where we're looking 43 00:03:07,680 --> 00:03:10,280 one of the stuff. There are opportunities, And I'll tell you what those 44 00:03:10,280 --> 00:03:15,080 opportunities are and how we look at them and why we're looking at them that 45 00:03:15,120 --> 00:03:17,560 way. This is the money amount of show, as you know, and 46 00:03:17,599 --> 00:03:22,479 it is brought to you by Greenberg Financial Group. Greenberg Financial Group is a 47 00:03:22,479 --> 00:03:28,159 broken dealer and a registered investment advisory registered with the SEC. The members of 48 00:03:28,199 --> 00:03:32,639 Finer and the members of SIPPIC on the show. We always talk about different 49 00:03:32,680 --> 00:03:38,520 products, different strategies, different ideas, individual companies. We kind of tell 50 00:03:38,560 --> 00:03:42,520 you what the risks are, but there's risk in everything, and your risk 51 00:03:42,599 --> 00:03:46,759 tolerance is different than somebody else's risk tolerance, and only you know that risk 52 00:03:46,800 --> 00:03:51,240 tolerance. So I don't just take what we say or anybody else says, 53 00:03:51,319 --> 00:03:53,840 or anything you eat and just say, hey, I'm gonna go do this 54 00:03:53,879 --> 00:04:02,159 without understanding the risks. Every investment bear is some type of risk, So 55 00:04:02,360 --> 00:04:09,800 understand that prior to investing, and your risk tolerance should not change when the 56 00:04:09,919 --> 00:04:14,919 market's going up, because of course you can hand the risk when you're making 57 00:04:14,919 --> 00:04:18,079 money. Think about what it is when the markets are going down. Think 58 00:04:18,120 --> 00:04:24,600 about now we're going into August, September, and October. I don't think 59 00:04:24,639 --> 00:04:28,439 we have just a full off the cliff thing unless something happens that we don't 60 00:04:28,480 --> 00:04:33,279 see coming. But I think earnings have been okay. You know, from 61 00:04:33,319 --> 00:04:36,879 a year over a year, they're gonna be good. Twenty two wasn't that 62 00:04:36,959 --> 00:04:43,720 great a year. This is the coming into the thirty year the presidency next 63 00:04:43,800 --> 00:04:48,920 year, so let's see what happens. Most of the year. The stock's 64 00:04:48,959 --> 00:04:58,160 going up of the Magnificent seven, and it's all driven by AI artificial intelligence. 65 00:04:58,959 --> 00:05:05,639 Well and two people's start making money on artificial intelligence. That whole craze 66 00:05:06,560 --> 00:05:14,040 wears itself out if it's not creating cash and creating profits, but only creating 67 00:05:14,839 --> 00:05:19,920 interest and euphoria. So where do we sit now? We sit The SMP 68 00:05:20,120 --> 00:05:24,680 was up one this week, up three for the month, and up nineteen 69 00:05:24,680 --> 00:05:30,720 percent for the year. That stacks up two three point eight four a month 70 00:05:30,199 --> 00:05:35,360 and up thirty six percent for the year. The small caps are one up 71 00:05:35,360 --> 00:05:40,240 for the week, five percent for the month, and twelve percent for the 72 00:05:40,319 --> 00:05:45,759 year. And the one that we always look at is the equal weighted S 73 00:05:45,839 --> 00:05:50,959 ANDP A point two percent for the week, a three percent for the month, 74 00:05:51,120 --> 00:05:56,279 which is equal to the SMP, and only up nine percent for the 75 00:05:56,399 --> 00:06:01,519 year. That makes more sense because unless you just put all your money in 76 00:06:01,560 --> 00:06:08,000 the SSP and NASDAC, which means you're pretty much very high risk type person, 77 00:06:08,240 --> 00:06:10,759 because it can't, we'll go down and we'll go up. And I 78 00:06:10,879 --> 00:06:14,519 know the whole thing is, who cares it keeps going? Well, it 79 00:06:14,519 --> 00:06:17,600 doesn't always keep going, guys, because you know what, what only close 80 00:06:17,639 --> 00:06:21,480 to forty six hundred, and that's two hundred somewhat points lower than the highs, 81 00:06:21,800 --> 00:06:25,839 which means if you did that at forty eight fifty, you're stole down 82 00:06:26,360 --> 00:06:30,360 and when you're at thirty nine hundred, you were worried and concerned. I've 83 00:06:30,360 --> 00:06:36,319 been in this thing a long time. I understand investor psychology. So with 84 00:06:36,480 --> 00:06:40,639 that, I'm going to go back to what I was saying, opportunities. 85 00:06:41,680 --> 00:06:44,680 So they come to this to me this week and they say, you know, 86 00:06:44,759 --> 00:06:47,560 I don't want to keep putting money from the Amazons, the Googles, 87 00:06:47,600 --> 00:06:50,800 the Apples. You know, it's just so high I don't want to get 88 00:06:50,839 --> 00:06:55,000 in and then watch them come down. And then when there I said, 89 00:06:55,040 --> 00:06:59,399 okay, so what do you do there is you maybe start with a little 90 00:06:59,399 --> 00:07:02,800 bit of the index that has them in there so you can dollar course avage 91 00:07:02,800 --> 00:07:06,560 if it comes down. But if you're looking for individual places, let's look, 92 00:07:08,079 --> 00:07:13,879 Microsoft got beat up. Microsoft got down to the low three thirties. 93 00:07:14,800 --> 00:07:16,600 I mean, is it really beat up to compared to when it was down 94 00:07:16,639 --> 00:07:21,720 at the low two hundreds now, but it has come off twenty thirty points 95 00:07:21,720 --> 00:07:27,480 from its highs. Not a bad place to start a little position. If 96 00:07:27,519 --> 00:07:30,920 you don't have any If you're trying to get self invested and you have all 97 00:07:30,959 --> 00:07:34,480 this cash, what's the other thing? Raight Theon? We live here, 98 00:07:34,480 --> 00:07:40,920 we know Raith Theon, Raytheon's not going away. Raytheon have some trouble with 99 00:07:40,959 --> 00:07:43,839 their engines. They got to take a look at it. No different than 100 00:07:43,879 --> 00:07:46,399 bowing with their planes. These are in short term plays. When they turn 101 00:07:46,439 --> 00:07:51,920 around, when you get in and Rython under eighty five popped a little bit, 102 00:07:51,959 --> 00:07:57,000 who knows where it goes? You can come a little unto eighty Raytheon's 103 00:07:57,040 --> 00:08:01,399 not going away, be smart about it. And the other one when I 104 00:08:01,439 --> 00:08:07,279 got down the thirday could tell people, you know, Target, Target is 105 00:08:07,319 --> 00:08:11,959 not you know, got hit for the same reason bud Light died. But 106 00:08:11,120 --> 00:08:16,439 Target changed their philosophy pretty quickly yet rid of what was bothering people went the 107 00:08:16,480 --> 00:08:20,759 other way and back to school. So you know, you pick it up 108 00:08:20,759 --> 00:08:26,360 twenty eight thirty and now it's about thirty six dollars. There's opportunities all the 109 00:08:26,519 --> 00:08:31,480 time, even when the markets are rocketing up and you're and you're looking at 110 00:08:31,519 --> 00:08:35,440 these other stocks and say where do I put more money? And that's the 111 00:08:35,519 --> 00:08:41,360 cycle that you go through. Look for the stocks that guy have gotten hit 112 00:08:41,360 --> 00:08:43,240 a little bit for one reason or the other, and the money will flow 113 00:08:43,279 --> 00:08:48,240 back in and stay with good companies. Raise the UN's a great company, 114 00:08:48,480 --> 00:08:52,960 Target's a great company, Microsoft's a great great company. Doesn't mean you're buying 115 00:08:52,960 --> 00:08:56,759 it at the bottom, but it means you're buying it a lot less than 116 00:08:56,799 --> 00:09:01,159 when they were their highs. That they just had read and lee. And 117 00:09:01,240 --> 00:09:05,519 that's what you look for. No different than those banks. Alliance Bank got 118 00:09:05,519 --> 00:09:09,320 down to eleven dollars, but you know you might have been able to buy 119 00:09:09,360 --> 00:09:13,919 it between fifteen and twenty that day. It's back over fifty. Crisis crisis, 120 00:09:13,919 --> 00:09:20,879 I don't want it was all room is. But if you invest, 121 00:09:20,000 --> 00:09:24,480 you gotta look and be quick at opportunities and pull the switch. Switch your 122 00:09:24,480 --> 00:09:28,840 mind from being, oh, oh, I gotta buy these things are going 123 00:09:28,919 --> 00:09:31,480 I'm gonna I'm not gonna. I'm not gonna be part of it. The 124 00:09:31,559 --> 00:09:33,799 video's gonna go to a thousand, I'm not gonna be part of it. 125 00:09:33,799 --> 00:09:37,000 Well, you didn't buy it, which for a little bit of a pullback. 126 00:09:39,519 --> 00:09:43,799 Google Apple, Oh, you'll have an opportunity. Look for the other 127 00:09:45,159 --> 00:09:54,679 opportunities in these markets. So you're an investor says, this is happening a 128 00:09:54,720 --> 00:10:01,639 lot now too, ultra conservative investor. They're out of the market's got cash 129 00:10:01,679 --> 00:10:07,639 sitting there, but they want to go get going. So I started thinking 130 00:10:07,679 --> 00:10:11,080 about it, and I came up with a model that's perfect for the ultra 131 00:10:11,080 --> 00:10:20,320 conservative person. It's called sig cig conservative income and then get a kicker in 132 00:10:20,360 --> 00:10:26,399 the growth. It's for preservation of principle, with the opportunity to make some 133 00:10:26,519 --> 00:10:37,799 money in the market without risking your principle. How about that? Okay, 134 00:10:37,840 --> 00:10:41,000 how about that? So you go in. There's a couple of different ways 135 00:10:41,039 --> 00:10:45,559 to do it. But you've got government bonds, right, you got government 136 00:10:45,600 --> 00:10:50,360 bonds paying you four percent, four and a half percent whatever it is, 137 00:10:50,720 --> 00:10:56,600 and the income that's derived off of it, and the money bought it because 138 00:10:56,600 --> 00:10:58,639 you remember, you're buying it at a discount right now, you're buying it 139 00:10:58,679 --> 00:11:03,519 at a discount usually two ninety three to be able to get that yield. 140 00:11:05,919 --> 00:11:09,919 Those bonds will turn into you say, you're doing it on a million dollars. 141 00:11:11,519 --> 00:11:13,840 You put up nine ten, nine hundred, twenty thousand that you know 142 00:11:15,440 --> 00:11:20,360 every time you those that bond ladder comes due, you're gonna get one hundred 143 00:11:20,399 --> 00:11:24,960 thousand dollars each bond that you bought or whatever it is. That million will 144 00:11:24,960 --> 00:11:26,519 turn into a million, and nine ten will turn to a million. No 145 00:11:26,720 --> 00:11:31,279 risk to a principle. You take the other part and the interest and your 146 00:11:31,320 --> 00:11:39,559 dollar course average into our growth model using indexes, not individual stocks indexes. 147 00:11:41,799 --> 00:11:45,840 You'd be surprised over time three years, four years, five years, seventy 148 00:11:45,879 --> 00:11:48,200 years, ten years, how much that will grow for you. And you 149 00:11:48,279 --> 00:11:54,720 sleep at night. You know why you sleep at night. Your principal's secure 150 00:11:54,399 --> 00:12:07,879 by the government bonds. Ultra conservative investors that want preservation a principle, but 151 00:12:07,080 --> 00:12:13,120 understand to keep up with the inflation, we need to get some growth over 152 00:12:13,279 --> 00:12:18,120 time. So you do a five year program, three year pro whatever it 153 00:12:18,200 --> 00:12:22,000 is you want to put it away. Right the worst case scenario, if 154 00:12:22,000 --> 00:12:26,759 the markets all want to zero, the government bonds pay off, you're right 155 00:12:26,799 --> 00:12:30,120 back to leash your principle. Of course, you're gonna have more than that. 156 00:12:30,440 --> 00:12:33,159 The indexes aren't going to go to zero. The interest is going to 157 00:12:33,240 --> 00:12:39,240 come in. But unlike insurance people with that SIG, they're guaranteeing it through 158 00:12:39,240 --> 00:12:46,240 annuities. We can't use the word guarantee. So I'm telling you you'll it's 159 00:12:46,320 --> 00:12:54,840 preservation a principle, getting your income that turns into growth. Sig CIG conservative 160 00:12:54,879 --> 00:12:58,840 investors who have cash on the sidelines that are afraid to get into the market 161 00:12:58,919 --> 00:13:03,240 right now because it's where it is, and you use the opportunity over time 162 00:13:03,279 --> 00:13:07,000 to do it. Take advantage of the interest rates being higher, take advantage 163 00:13:07,120 --> 00:13:13,360 of dollar course averaging into the markets, and you'll be well rewarded down the 164 00:13:13,399 --> 00:13:18,840 old The worst case scenario is you get all your money back, and you've 165 00:13:18,879 --> 00:13:22,440 heard that story within with the with the what you call it all day long 166 00:13:22,480 --> 00:13:28,559 and nuities and nudities, nuities. But here's the best part. It's tax 167 00:13:28,600 --> 00:13:33,399 efficient. That's tax deferred. Remember if you're an in enuity, it's tax 168 00:13:33,440 --> 00:13:37,200 deferred. You take it out, you pay taxes on your games. This 169 00:13:37,440 --> 00:13:43,720 is tax efficient. Why because government bonds allow you to not have to pay 170 00:13:43,759 --> 00:13:50,000 state tax. We have state tax in Arizona. So you say, well, 171 00:13:50,159 --> 00:13:54,919 not tax, doing the EFT, doing the e f T the index 172 00:13:54,000 --> 00:14:01,159 models. You stay in it long term, which is a year, or 173 00:14:01,320 --> 00:14:05,080 if it's down, you can sell and take tax losses and switch from one 174 00:14:05,120 --> 00:14:13,960 to another. That's why it's tax efficient long term gains, no state tax 175 00:14:15,000 --> 00:14:20,240 on the income coming off the US government bonds. Now that's a way to 176 00:14:20,240 --> 00:14:22,519 look at it. We're going to talk about it with all the guys later. 177 00:14:22,919 --> 00:14:26,559 But there's a model. There's always something coming up. For all the 178 00:14:26,639 --> 00:14:31,679 years I've been doing this, we manage the money ourselves. I've come up 179 00:14:31,720 --> 00:14:37,960 with the models, the income models, the the the the protection models, 180 00:14:37,039 --> 00:14:39,919 all the stuff. You know. We had a protection model. Everybody loved 181 00:14:39,919 --> 00:14:43,960 to protection model in December twenty two because guess what, the market went down 182 00:14:45,000 --> 00:14:48,200 and it did what it was supposed to, not lose more than ten to 183 00:14:48,279 --> 00:14:54,360 twelve percent of their original amount of the accountant people that got in earlier one 184 00:14:54,480 --> 00:15:01,639 even close to that. Right now, markets are higher. Of course, 185 00:15:03,080 --> 00:15:07,840 the insurance it's gonna cost you in your returns. That's how it happened. 186 00:15:07,919 --> 00:15:11,919 Market goes up, the insurance goes down. But when the markets wentn't down, 187 00:15:11,960 --> 00:15:15,759 the insurance was perfect. Now I have a whole other way of doing 188 00:15:15,799 --> 00:15:18,960 it for you, the conservative investor, Take it and think about it. 189 00:15:20,039 --> 00:15:24,440 So that's where we're at in investing in the markets. You gotta be careful 190 00:15:24,440 --> 00:15:28,960 where we are, but you gotta be invested because I don't know if we're 191 00:15:28,960 --> 00:15:33,399 gonna go to make new highs right now. I thought the forty two for 192 00:15:33,519 --> 00:15:39,759 Max would be the highs were close to forty six. I'm not perfect, 193 00:15:39,159 --> 00:15:45,600 but I'm still making money. That's the idea behind it. We know how 194 00:15:45,639 --> 00:15:48,639 to protect your portfolios. If that's what you know. If you're fearing, 195 00:15:48,879 --> 00:15:52,440 if you're scared, if you're nervous, do it. And it all starts 196 00:15:52,480 --> 00:15:58,480 with the plan, and it ends with the money management. We do it 197 00:15:58,519 --> 00:16:02,919 all and why you do it all. It's of course I understand how to 198 00:16:02,960 --> 00:16:06,759 manage money, but in order to do it, you got to find out 199 00:16:06,759 --> 00:16:08,600 what the risk tolerance is, what your plan is, how much income you 200 00:16:08,639 --> 00:16:11,279 need, do you have enough income stream, will you be able to live 201 00:16:11,320 --> 00:16:14,399 on it? What are you going to do with the money? Those are 202 00:16:14,440 --> 00:16:18,159 important. That's why what we the setup we have as a team right now 203 00:16:18,000 --> 00:16:23,480 is working fantastic. And all those people that keep coming in and making appointments, 204 00:16:25,240 --> 00:16:30,399 I'm glad you have confidence in us and trust in us to at least 205 00:16:30,559 --> 00:16:36,480 show you how we do it. And then so many of you wanting to 206 00:16:36,519 --> 00:16:38,120 do business with us, and I think a lot of it is too, 207 00:16:40,159 --> 00:16:45,440 honestly is we think the same. We think the same. We we we 208 00:16:47,039 --> 00:16:52,720 look at the situation in our country, in the world, in our government 209 00:16:52,120 --> 00:16:56,919 and just can't believe what's happening. I mean, this week is no different. 210 00:16:56,639 --> 00:17:02,600 Think about it. They beating up President Trump again, trying to indict 211 00:17:02,679 --> 00:17:11,319 him again on garbage to distract us from what's really going on right in front 212 00:17:11,400 --> 00:17:18,200 of the world, but the media doesn't want to expose it. That's disgusting 213 00:17:18,279 --> 00:17:22,279 to me. How does Biden get away with all this? No diffen than 214 00:17:22,319 --> 00:17:26,440 Clinton, but at least Clinton's didn't have all the social media that really got 215 00:17:26,440 --> 00:17:30,680 out there. What the Biden's man think about it? You're catching guys with 216 00:17:30,880 --> 00:17:36,240 bonds on his lawyer, smoking a bomb, you know, getting coking in 217 00:17:36,279 --> 00:17:40,119 the White House, You're getting weed in the White House. Where's it coming 218 00:17:40,160 --> 00:17:44,119 from? And the fact that they don't pin it on anybody else. I'm 219 00:17:44,160 --> 00:17:47,279 glad to hear that. Okay, is you know where it's going, you 220 00:17:47,359 --> 00:17:51,599 know what it's about. And then they try to sneak through the justice system 221 00:17:51,920 --> 00:18:00,279 and give Biden's son the ability to basically don't go to jail, and we're 222 00:18:00,279 --> 00:18:07,200 gonna and you're gonna get your immunity right there. We should rise up Democrats, 223 00:18:07,279 --> 00:18:12,079 Republicans, people in the US and say hell no, hell no. 224 00:18:15,160 --> 00:18:21,720 You know they spow all this stuff about we're all well, no one's above 225 00:18:21,759 --> 00:18:25,759 the law, except of course, if you're in a Democrat or you're a 226 00:18:25,839 --> 00:18:33,759 Clinton, or you're a Biden. It's time for the people to say no 227 00:18:33,839 --> 00:18:40,279 more. It's time for us to say no more, and our judges. 228 00:18:40,839 --> 00:18:44,759 And I'm glad that judge had some goods to do this and not just roll 229 00:18:44,839 --> 00:18:49,599 over. The judges need to stop letting this happen. They have gotten away 230 00:18:49,599 --> 00:18:53,119 with so much. I mean, come on, the judge. Judges in 231 00:18:53,160 --> 00:18:59,960 Arizona won't even look at the election information or let it get exposed. Okay, 232 00:19:00,079 --> 00:19:03,480 expose it, let the people see it, let them decide. But 233 00:19:03,680 --> 00:19:10,359 no. But I'm glad as judge didn't go down the road of just rubbers 234 00:19:10,400 --> 00:19:19,160 stamping Biden to get immunity to not not to go to jail all that stuff. 235 00:19:21,480 --> 00:19:25,119 We know, it's so much more. How are they not talking about 236 00:19:25,200 --> 00:19:30,559 the money. The money trail I'm hearing is over fifty million dollars that they're 237 00:19:30,559 --> 00:19:37,480 going to expose. And you have iOS agents talking about this talking about these 238 00:19:37,559 --> 00:19:44,359 millions of dollars and saying his country club expenses and it's sex club expenses. 239 00:19:45,759 --> 00:19:51,319 Lie after lie after lie after lie. I couldn't kill less what he does 240 00:19:51,359 --> 00:19:53,319 in his life. I don't want him to do be a drug addict. 241 00:19:53,319 --> 00:19:57,680 I don't want to be, you know, a degenerate. Okay, I'm 242 00:19:57,680 --> 00:20:02,680 not happy that he doesn't. But don't give him a break just because he's 243 00:20:02,720 --> 00:20:08,920 a president's son. China, Russia, Ukraine, everything that they can't they 244 00:20:10,200 --> 00:20:17,279 pinned on Trump. They did it themselves. And now they're trying to put 245 00:20:17,319 --> 00:20:22,480 Trump in jail when they're doing it themselves. I mean, think about that. 246 00:20:22,599 --> 00:20:29,200 Think about somebody that's an absolute lion narcissist and you catch him with something 247 00:20:29,200 --> 00:20:32,160 and they turn it and say it's you, or they always try to get 248 00:20:32,240 --> 00:20:36,799 you in trouble that even though you didn't do it, but they know because 249 00:20:36,839 --> 00:20:41,039 they did it. They knew what was going on in Russia, they knew 250 00:20:41,039 --> 00:20:44,279 what was going on in Ukraine, in China because they were doing it. 251 00:20:44,480 --> 00:20:47,880 So they were trying to make a game plan of saying that was Trump. 252 00:20:49,039 --> 00:20:55,359 Sure, I'm sure it's sub of Trump's business dealings and everything wearing above boarding, 253 00:20:55,440 --> 00:20:57,839 great and everything else, but they haven't been able to nail him on 254 00:20:57,880 --> 00:21:03,759 that, you know. And I know if the IRS came after almost anyone 255 00:21:03,799 --> 00:21:07,440 the stuff, they would say, Oh, that's not good, that's not 256 00:21:07,559 --> 00:21:11,880 good, that's not good. That's good. But I've heard many stories too 257 00:21:11,880 --> 00:21:14,839 when the IRS comes in and orders to you, they discredit this, but 258 00:21:14,920 --> 00:21:18,119 you get credit for other things that you didn't so pretty much pay your taxes. 259 00:21:21,000 --> 00:21:26,839 Okay, they won't bother you. But at the end of the day, 260 00:21:26,319 --> 00:21:33,039 I gotta look and see what kind of country we're leaving to our grandchildren 261 00:21:33,640 --> 00:21:42,000 and their children. And right now this country is so corrupt, so bad 262 00:21:42,119 --> 00:21:48,799 politically, turning into the weakest country I've seen a long time. And is 263 00:21:48,839 --> 00:21:56,599 it because for all those years they have been doing things that they're not supposed 264 00:21:56,640 --> 00:22:02,559 to. I mean, blistically, you got one political system. You had 265 00:22:02,599 --> 00:22:04,920 them, some called Democrats, some called Republicans. They switched back and forth 266 00:22:04,960 --> 00:22:08,759 sometimes, but they all try to protect their jobs. And then there's that 267 00:22:08,880 --> 00:22:15,039 other group that's trying to do the right thing for the USA, for America, 268 00:22:15,119 --> 00:22:18,160 for us to be strong again, and they keep getting shot down. 269 00:22:18,160 --> 00:22:22,200 And the media is so good and so strong at this Eventually the media is 270 00:22:22,200 --> 00:22:26,920 gonna get wiped out. They're gonna get overrun with everything that's going on, 271 00:22:27,000 --> 00:22:33,359 and they're going to have to report the truth. How could they hold back? 272 00:22:34,920 --> 00:22:40,359 I'm Biden's son, the President's son. How can they hold back on 273 00:22:40,480 --> 00:22:45,839 what's going on? Knowing now that there were so many lies that everything about 274 00:22:47,079 --> 00:22:48,880 I wasn't involved, I didn't know anything, I had this and that. 275 00:22:49,079 --> 00:22:56,920 And we know now from other sources publicly in these hearings under oath that they 276 00:22:56,920 --> 00:22:59,880 were part of it, that he knew everything. Of course, a father 277 00:23:00,039 --> 00:23:07,960 knows everything. Lastly, you run away. You know it's heated bay time 278 00:23:07,960 --> 00:23:11,759 at the White House. So you go to your beach house with millions of 279 00:23:11,799 --> 00:23:15,759 dollars, And where do you get that money? Your average salary for all 280 00:23:15,759 --> 00:23:18,359 the years you've been in there's probably one hundred and seventy five. How the 281 00:23:18,480 --> 00:23:22,759 heck did you invest your money? They become so rich, And even if 282 00:23:22,799 --> 00:23:26,960 you've got a few hundred thousand dollars when you're a vice president for some things, 283 00:23:27,119 --> 00:23:33,200 it doesn't allow you to have tens of millions of dollars. There's so 284 00:23:33,319 --> 00:23:38,119 much stuff going on that I hope it doesn't break your entire system, but 285 00:23:38,240 --> 00:23:42,599 we have to clean it out. So you coupled that with the markets that 286 00:23:42,680 --> 00:23:48,160 are going higher, you have all this stuff happening. I'm telling you invest 287 00:23:48,279 --> 00:23:52,599 cautiously. Invest cautiously, be happening. You've made some money in fact, 288 00:23:53,000 --> 00:23:56,039 you know what, have you've been thinking about doing something? Take some money 289 00:23:56,039 --> 00:24:00,160 out, go do it so you know you can some of your profits. 290 00:24:00,359 --> 00:24:04,480 You made one hundred grand, take twenty five grand and do something because it 291 00:24:04,559 --> 00:24:08,960 can tune against you and that's not what you want to see. So in 292 00:24:10,079 --> 00:24:12,440 summary, markets keep going higher. I don't see a lot to bring it 293 00:24:12,480 --> 00:24:15,160 down right now. But we were in August, September, October, so 294 00:24:15,200 --> 00:24:19,160 will be very very careful. We have a way. If you're ultra conservative, 295 00:24:21,279 --> 00:24:23,119 we'll talk about it more and keep listening. We got an hour and 296 00:24:23,119 --> 00:24:26,839 a half left of the Moneymounted Show. Thank you for being part of it. 297 00:24:32,079 --> 00:24:36,039 Welcome back everybody to the Money Mounted Show. We got a full house. 298 00:24:37,160 --> 00:24:41,960 Hello, Dave Good and Todd Yes or Pointyboddy. So the big headline 299 00:24:42,000 --> 00:24:45,279 this week was the dal rally the down streak, right, wasn't that the 300 00:24:45,279 --> 00:24:48,640 big headline? You know? Last Simon did it? Yes? Nineteen eighty 301 00:24:48,640 --> 00:24:52,319 seven, nineteen eighty seven. What's weird is that we found one day short 302 00:24:52,359 --> 00:24:57,640 of the all time record, which would have been fourteen consecutive days in eighteen 303 00:24:59,039 --> 00:25:00,960 ninety seven. And Todd, I thought this was pretty cool, although you 304 00:25:02,039 --> 00:25:07,200 thought it was a dub nineteen eighty seven in eighteen ninety seven, same four 305 00:25:07,279 --> 00:25:11,039 numbers, just different configuration. I thought that was kind of cool. Yeah. 306 00:25:12,079 --> 00:25:15,720 And the only and the only reason it didn't go fifteen is they had 307 00:25:15,720 --> 00:25:21,880 the usually versals on Thursday's true, but in all fairness, a week ago 308 00:25:21,960 --> 00:25:25,240 Friday it was up two points. It could have very easily been down two 309 00:25:25,240 --> 00:25:26,799 points that we wouldn't even been talking about it though, But it was just 310 00:25:26,880 --> 00:25:30,599 kind of fun to talk about and historic, historic touches of things. The 311 00:25:30,599 --> 00:25:37,559 other big story of the week four, especially for Tucson, was raytheon stock 312 00:25:37,880 --> 00:25:42,640 has not participated in issues. Rally dropped fifteen percent at the open on Tuesday 313 00:25:44,279 --> 00:25:48,240 after the company said, now, I'll quote them, a significant portion of 314 00:25:48,279 --> 00:25:53,119 the Pratt and Whitney engines that power Airbus A three twenty neo jets will need 315 00:25:53,200 --> 00:26:00,400 accelerated removal and inspection over the next twelve months. Now the stock reacts to 316 00:26:00,519 --> 00:26:07,359 me was extreme. It appears the initial estimates of what this will cost will 317 00:26:07,400 --> 00:26:12,240 be around five hundred million dollars, and the company has annual revenue of sixty 318 00:26:12,279 --> 00:26:18,359 nine billion dollars. Sixty nine billion dollars. It doesn't seem like the kind 319 00:26:18,400 --> 00:26:22,839 of a thing that would knock a stock like Raytheon down fifteen percent. Yeah, 320 00:26:22,839 --> 00:26:23,799 it is interesting. I don't know if it's because it was just in 321 00:26:25,400 --> 00:26:29,240 I guess in their smaller sector. I don't know how I'm big. It 322 00:26:29,279 --> 00:26:30,759 seems like they're more in the missiles and everything. So maybe that's why you're 323 00:26:30,799 --> 00:26:36,519 gonna have a lot of analysts downgrades over the next week or ten days. 324 00:26:37,079 --> 00:26:40,440 That's typical when you have something like this, they lower their priced arg as 325 00:26:40,440 --> 00:26:44,160 they downgrade the stock from buy to a hold. You know, everybody gets 326 00:26:44,440 --> 00:26:48,519 more cautious. So, but I think if you've been looking for an entry 327 00:26:48,559 --> 00:26:52,480 point for Raytheon to at least start a position, and I'm gonna saying let's 328 00:26:52,519 --> 00:26:56,519 go all in with everything you have. But if you've been looking for a 329 00:26:56,559 --> 00:26:59,960 position to start a position to Raytheon, this is yeah. Like you said 330 00:27:00,079 --> 00:27:02,680 the past, though, when a stock craters like that, you don't necessarily 331 00:27:02,680 --> 00:27:04,720 get in right away because it could drop a little more and then I really 332 00:27:04,720 --> 00:27:07,279 will find a bottom and then it'll start building back. It generally does. 333 00:27:07,480 --> 00:27:10,759 It's what we've seen with Apple. It did it a while ago. It 334 00:27:10,880 --> 00:27:14,240 dropped from like one eighty to one fifty. Disney has done it twice. 335 00:27:14,559 --> 00:27:17,880 Yeah, eighteen months. We saw it with Disney. When it dropped down 336 00:27:17,880 --> 00:27:18,759 near one hundred, I said, I think it, well, did it 337 00:27:18,759 --> 00:27:22,359 twice. I mean it was at one sixty and then it dropped to one 338 00:27:22,480 --> 00:27:25,480 twenty and then you told me about the crater. Right then it was kind 339 00:27:25,480 --> 00:27:26,640 of stuck around there. It got back to about one thirty five and then 340 00:27:26,640 --> 00:27:29,640 a crater again. And now we look at it, it's at eighty five. 341 00:27:29,759 --> 00:27:32,759 Yeah. I think if I were looking at Raytheon, maybe take a 342 00:27:32,839 --> 00:27:37,200 quarter of a position here as a starting point. It's a great company with 343 00:27:37,160 --> 00:27:41,920 great products, great people us. It's gonna be okay, it's gonna be 344 00:27:42,079 --> 00:27:45,559 another one. There's a lot of news on this week, a lot of 345 00:27:45,599 --> 00:27:48,359 calls on. At least I had a number of people ask me about is 346 00:27:48,559 --> 00:27:53,720 mcal with the new Barbie movie, which went went over really really well. 347 00:27:55,039 --> 00:27:57,680 Stock was up twenty percent in the last thirty days ahead of release of that 348 00:27:57,759 --> 00:28:03,559 movie. Gained more ground on Monday after the opening weekend was strong. Be 349 00:28:03,640 --> 00:28:07,519 careful here, this should give them a short term boost in sales, but 350 00:28:08,480 --> 00:28:14,000 this two shall pass. And this company has been struggling. They're in the 351 00:28:14,000 --> 00:28:18,039 middle of declining sales. Now this will give them a pop, but they're 352 00:28:18,039 --> 00:28:21,759 in the middle of the decline. They give you an example this week. 353 00:28:21,839 --> 00:28:23,799 The middle of this week. Now you would think, okay, if if 354 00:28:23,799 --> 00:28:27,920 this Barbie thing is going to change the company and send them rocketing higher, 355 00:28:29,400 --> 00:28:33,319 wouldn't you want to be in charge of that ship? The CEO left in 356 00:28:33,359 --> 00:28:38,519 the middle of the week to join Yah to join the Gap, the wobe 357 00:28:38,559 --> 00:28:41,799 the CEO of the Gap instead of Mattel that was already coming then. But 358 00:28:41,839 --> 00:28:45,519 what did that tell you? I mean, what did that tell you about 359 00:28:45,640 --> 00:28:48,440 how to come out? Before Barbie even was released. I mean, that 360 00:28:48,519 --> 00:28:52,119 had been a deal made. I think what it's pointing to is that kids 361 00:28:52,119 --> 00:28:57,000 are less and less dealing with physical toys and it's more going into the virtual 362 00:28:57,039 --> 00:29:02,160 world. So we've seen that with Blocks, We've seen that with other video 363 00:29:02,200 --> 00:29:04,440 games. Um, that's where they spend their playtime. Right back in the 364 00:29:04,519 --> 00:29:10,359 day. You did have a Barbie, right, you had transformers like things 365 00:29:10,359 --> 00:29:15,559 that you actually past the physicals at all. But with Mattel is they did 366 00:29:15,599 --> 00:29:18,799 announce that they're trying to do a whole universe, like a Marvel universe. 367 00:29:18,839 --> 00:29:22,920 They're going to try and do a Hot Wheels movie. Other Disneyland essentially pretty 368 00:29:22,000 --> 00:29:26,279 much, but they're trying to do movies with it. But they've got a 369 00:29:26,319 --> 00:29:29,279 they're buildings. They're actually building a new Disney lad. I saw that in 370 00:29:29,319 --> 00:29:33,240 California with all of the all of those like Legoland is what I can exactly. 371 00:29:33,319 --> 00:29:34,960 That's a good good analogy doing. That's a good analogy. Yeah. 372 00:29:36,079 --> 00:29:38,599 But I had someone to approach me through Jim say, boy, I think 373 00:29:38,599 --> 00:29:41,759 I got to buy that stock, And I said, no, I think 374 00:29:41,759 --> 00:29:45,960 you ought to shorted. This is an opportunity. This is a struggling. 375 00:29:45,960 --> 00:29:48,440 But the other company that has a connection to the Barbie movie and Oppenheimer, 376 00:29:49,160 --> 00:29:53,160 Warner Brothers, didn't seem like it was moving too much on any Warner Brothers 377 00:29:53,240 --> 00:29:59,400 is Oppenheimer, right. While I also saw that they produced the Mattel because 378 00:29:59,400 --> 00:30:02,559 Mattel's toy company. No, I get that. I get that, but 379 00:30:02,559 --> 00:30:06,519 but I'm thinking that the Barbie movie was that was that Warner Brothers also, 380 00:30:07,039 --> 00:30:10,759 I believe so yeah, Okay, Sebastian sitting in the back there, he 381 00:30:10,799 --> 00:30:14,359 said, that's that's absolutely okay. A big weekend for them. Yeah, 382 00:30:14,440 --> 00:30:18,039 big weekend from Warner Brothers and Stock didn't doing anything. Yeah, so that 383 00:30:18,119 --> 00:30:21,119 might be an interesting see how their earnings come out in a couple of months. 384 00:30:21,480 --> 00:30:26,200 We had the we talked last week about the big historic rebalancing of the 385 00:30:26,279 --> 00:30:30,480 NASDAC one hundred that took place on Monday of last week, and talk about 386 00:30:30,519 --> 00:30:33,519 a yawn. Um, not only was it a yawn, it did nothing 387 00:30:34,039 --> 00:30:41,359 to stop the runaway Magnificent seven. On Friday, the NASDAC one hundred had 388 00:30:41,400 --> 00:30:42,799 its best day of the month. And it was a heck of a month. 389 00:30:44,160 --> 00:30:45,599 Yeah, I think a lot of how to do with you know, 390 00:30:45,720 --> 00:30:51,240 we had reports come out from Meta and uh they were pretty good, and 391 00:30:51,319 --> 00:30:55,519 so but Apple, Amazon, the Google, those all had reports late earlier 392 00:30:55,559 --> 00:30:59,759 and they were and uh in Nvidia, the Main and seven we're all running 393 00:30:59,799 --> 00:31:06,079 like gazelles. Yeah, late in the week and distorting the index. Again. 394 00:31:06,119 --> 00:31:11,359 The index which they tried to fix was had his best day of the 395 00:31:11,440 --> 00:31:14,279 of the month, of the entire month, and it was a perfect way. 396 00:31:14,319 --> 00:31:17,960 We're going day we'll have the entire world run by seven countries. Just 397 00:31:18,119 --> 00:31:21,160 ten years, we should have even companies. Yeah, I think you're absolutely 398 00:31:21,200 --> 00:31:23,920 right. My goodness, their their market cap is just getting So you want 399 00:31:23,920 --> 00:31:26,920 to talk a little bit about the Federal Reserve meeting this week? Sure, 400 00:31:27,400 --> 00:31:32,920 So obviously drum Powell came out raised it another twenty five basis points. Market 401 00:31:32,920 --> 00:31:36,079 really welcomed it with a yawn because they already knew that was going to happen. 402 00:31:36,640 --> 00:31:40,279 Um, the real interesting thing was what is he saying about the next 403 00:31:40,279 --> 00:31:44,559 meeting. They don't meet again until the end of September, How they're going 404 00:31:44,640 --> 00:31:48,920 to um, what they're going to do to interest rates in September? Is 405 00:31:48,920 --> 00:31:52,960 there really the only thing that could stop this market's momentum? And drum Power 406 00:31:53,000 --> 00:31:56,599 didn't really say that he was definitely going to raise rates next time. He 407 00:31:56,640 --> 00:31:59,799 says he's gonna look at economic news, he's gonna look at all the PC 408 00:32:00,119 --> 00:32:02,519 data, the CPI data, the labor market data, and how that comes 409 00:32:02,519 --> 00:32:07,559 out, we'll dictate their decision on the next meeting. So if we don't 410 00:32:07,599 --> 00:32:10,319 have another rate increase, we could see this market continue to go right, 411 00:32:10,319 --> 00:32:14,160 because that's kind of what the market wants to see. That's not what Jerome 412 00:32:14,200 --> 00:32:16,279 Powell wants, right, I mean, that's the bottom line. Well, 413 00:32:16,359 --> 00:32:21,119 Jerome Power really pointed at two different economic numbers. One of them was the 414 00:32:21,200 --> 00:32:25,519 core PC and CPI, And the core PC and CPI is the inflation measure 415 00:32:25,559 --> 00:32:30,640 that X is out food and energy, which is the most volatile part of 416 00:32:30,680 --> 00:32:35,559 inflation, and the central banks don't really control the prices of those things too 417 00:32:35,559 --> 00:32:38,640 well through monetary policy. So he wanted to see core CPI and pc go 418 00:32:38,720 --> 00:32:44,880 down. And he also wanted to see wage growth go down. Wage growth 419 00:32:44,960 --> 00:32:47,880 has continued to go off a chart, and you can't really see a slowing 420 00:32:47,880 --> 00:32:52,720 inflation when people are getting paid more because that means he's housing is forty two 421 00:32:52,759 --> 00:32:55,839 percent of CPI. We're seeing no weakness in housing because of the shortage. 422 00:32:57,799 --> 00:33:04,519 Shortage. The primary driver that took inflation from four to three in June was 423 00:33:05,640 --> 00:33:09,440 plunging gasolene prices. Well, how's that working on right? Oil prices are 424 00:33:09,480 --> 00:33:13,519 back to a three month high, and vide place a week up three and 425 00:33:13,519 --> 00:33:15,880 a half bucks at eighty and a half gas prices at eight month high. 426 00:33:15,920 --> 00:33:20,799 Yeah, and so here we go. So we're gonna get the July inflation 427 00:33:20,920 --> 00:33:23,920 number in the middle of August, and my guess is it probably ticks up 428 00:33:24,319 --> 00:33:28,400 and that would be the first time in months it has happened, right, 429 00:33:28,440 --> 00:33:30,799 yea, yeah, that might spare someone best number I think, right, 430 00:33:30,880 --> 00:33:34,920 Yeah, it's been a long time. Yeah, So that that could be 431 00:33:34,960 --> 00:33:37,640 a you know, a catalyst that finally makes markets take a breather. Um, 432 00:33:37,920 --> 00:33:42,680 we saw interest rates they did tick up this week, Um, based 433 00:33:42,720 --> 00:33:46,279 on the federal reserves decisions. So, um, what's the inversion now? 434 00:33:46,960 --> 00:33:51,680 Still one percent? Still one percent? Still right at one percent? The 435 00:33:52,200 --> 00:33:54,880 ten year treasury three point nine, the two year treasury four point nine. 436 00:33:55,000 --> 00:33:59,480 Yeah, and again that's the bond market telling you we're gonna have a recession. 437 00:34:00,319 --> 00:34:04,039 Now. It's been wrong for a year and a half. Yeah exactly. 438 00:34:04,359 --> 00:34:06,920 Are we thinking that for once it's not going to be right? It's 439 00:34:06,960 --> 00:34:08,800 been right in the past. It's not right every time. Remember remember that 440 00:34:08,960 --> 00:34:15,079 it's it's the high high percentage of accuracy, but not every time. The 441 00:34:15,159 --> 00:34:19,960 interesting bartwo is the average amount of time between when the inversion takes place and 442 00:34:20,039 --> 00:34:24,400 the actual recession is fifteen months and we're right there, right right at about 443 00:34:24,440 --> 00:34:30,039 that fifteen month level, so we'll see um. But that was an interesting 444 00:34:30,239 --> 00:34:37,360 Uh. The economy continues to be strong. The flash PMI number for July 445 00:34:37,519 --> 00:34:43,519 showed continuing strength in the US. We saw the gross domestic product up two 446 00:34:43,559 --> 00:34:46,760 point four percent the first look at it for the for Q two, which 447 00:34:46,800 --> 00:34:52,639 is stronger than expected. Personal consumption expenditure was the lowest in two years, 448 00:34:52,239 --> 00:34:59,920 but the core personal consumption expenditure was high and personal spending increased. So we're 449 00:35:00,360 --> 00:35:04,920 essentially seen little, if any slowed down in the economy, which is one 450 00:35:04,960 --> 00:35:07,159 of the reasons the markets running and they're saying, oh, my goodness, 451 00:35:07,199 --> 00:35:12,639 we've avoided recession. Well sort of rights, because the manufacturing sector of the 452 00:35:12,679 --> 00:35:15,199 United States has definitely slowed down, no question, it's definitely slowed down, 453 00:35:15,239 --> 00:35:20,159 But the services has done the exact opposite. It's still increasing. So you 454 00:35:20,199 --> 00:35:24,239 have this dichotomy where overall we're still seeing a positive growth, really led the 455 00:35:24,239 --> 00:35:30,360 way by the services sector, but maybe eventually the manufacturing starts to weigh down 456 00:35:30,400 --> 00:35:34,440 the growth, but it doesn't look like it's doing it. Yeah, at 457 00:35:34,440 --> 00:35:37,159 this point in time, we know that that Paul watched inflation down around two 458 00:35:37,199 --> 00:35:42,719 percent. Todd to report on Friday showed is still four. Yeah, it's 459 00:35:42,760 --> 00:35:46,880 still four. Core PC is still four. Personal consumption expenditure is still for 460 00:35:47,440 --> 00:35:51,679 he doesn't want it to four. So we'll be back with a little break 461 00:35:51,679 --> 00:35:53,719 coming up here, and we'll be back right after this message. We thank 462 00:35:53,760 --> 00:36:04,320 you for joining this on this Sunday morn say. It's all welcome back. 463 00:36:04,360 --> 00:36:07,159 You're listening to the Money Matter Show. Dylan Greenberg. I'm here with Todd 464 00:36:07,159 --> 00:36:09,840 Glick, Dan Greenberg and Dave Sherwood. We had a pretty good a week 465 00:36:09,880 --> 00:36:14,159 last week. The Dallas up point seven percent, SMP five hundred was up 466 00:36:14,199 --> 00:36:17,480 one percent, the NASDAC was up two percent, so the Magnificent seven is 467 00:36:17,480 --> 00:36:22,159 still killing it. The RSP, which is the equal weight at SMP five 468 00:36:22,280 --> 00:36:24,559 hundred, was up point two percent. Overall, the market, if you're 469 00:36:24,559 --> 00:36:28,440 looking at that, was pretty flat, and then the small cap, which 470 00:36:28,440 --> 00:36:30,480 is the Russell two thousand, was up one percent. It was a positive 471 00:36:30,480 --> 00:36:35,079 week all around. Good news like we were talking about last segment, was 472 00:36:35,119 --> 00:36:38,000 the good news about the inflation, even though, like we've said at the 473 00:36:38,079 --> 00:36:40,480 end of the last segment, is still a four percent and he still wants 474 00:36:40,519 --> 00:36:44,400 to get it to two percent. But what they said was good on the 475 00:36:44,480 --> 00:36:46,920 last last week was that there might only be one more interest rate hike, 476 00:36:47,239 --> 00:36:52,920 and now investors love that. It is so hard one it's like this not 477 00:36:52,039 --> 00:36:59,000 to just say just close your eyes and buy. But valuations. This is 478 00:36:59,039 --> 00:37:02,159 something I've learned. I've been doing this for forty one years. Valuations do 479 00:37:02,519 --> 00:37:07,880 matter. At the end of the day, valuations do matter. And right 480 00:37:07,920 --> 00:37:15,639 now the valuation on the SHMP five hundred is sixty five percent above normal valuation. 481 00:37:15,119 --> 00:37:17,719 Also, when you just said, like what you just said, it's 482 00:37:17,760 --> 00:37:21,639 all you want to do, let's close your eyes and buy, just gotta 483 00:37:21,679 --> 00:37:24,760 buy. I just missing it. I'm missing this kind u That is the 484 00:37:24,800 --> 00:37:29,480 cell signal is when you think I just need to buy. We went through 485 00:37:29,519 --> 00:37:30,880 this with That's a good time to probably sell. We went through this with 486 00:37:30,880 --> 00:37:34,400 Tesla a couple of years ago, where it just wouldn't go down no matter 487 00:37:34,440 --> 00:37:36,440 what it had, it just kept going up and up and up. People 488 00:37:36,480 --> 00:37:38,800 kept buying it pretty much closing their eyes and buying it, and it just 489 00:37:38,840 --> 00:37:43,039 never went down. But it's pe was at what like two hundred and eighty 490 00:37:43,039 --> 00:37:45,800 three. It was ridiculously overvalued, but for some reason it just kept going 491 00:37:45,880 --> 00:37:49,559 up until it didn't, and then all of a sudden it dropped and dropped 492 00:37:49,559 --> 00:37:52,760 and dropped, and now it's p's around forty something, a lot more manageable 493 00:37:52,800 --> 00:37:58,159 and a lot more to its traditional or it's true value. So it does 494 00:37:58,239 --> 00:38:00,119 happen, it can't happen, and it does, it will get fixed. 495 00:38:00,400 --> 00:38:05,079 Just like all of those twenty twenty stocks, they just had astronomically high pees. 496 00:38:05,159 --> 00:38:07,519 People were just buying them because you could throw a dart pick any stock 497 00:38:07,559 --> 00:38:10,280 in the world and it would go up at that point, until it stop 498 00:38:10,360 --> 00:38:14,719 doing that, and everybody started getting nerves and selling out of those crap penny 499 00:38:14,719 --> 00:38:17,480 stock companies that went to fifty dollars a share for no reason, they went 500 00:38:17,519 --> 00:38:22,320 back to five dollars a share. Beyond Bath and Beyond is now out of 501 00:38:22,360 --> 00:38:27,079 business. Everybody thought they had a whole resurgence because their stock went from nothing 502 00:38:27,159 --> 00:38:30,800 to what fifty sixty dollars because it was one of those meme stocks. Then 503 00:38:30,800 --> 00:38:31,440 all of a sudden, the year and a half later, it got back 504 00:38:31,440 --> 00:38:35,199 to his true valuation of nothing, and now they're out of business, you 505 00:38:35,280 --> 00:38:37,360 know, when we were down at thirty eight hundred, everyone was thinking, 506 00:38:37,360 --> 00:38:40,559 all, this could be the big crash. It's coming here, you know, 507 00:38:40,639 --> 00:38:44,480 hindsight being twenty twenty, that's obviously a good buy a signal, right, 508 00:38:44,519 --> 00:38:46,880 when everyone wanted to sell all news was bad news. We constantly talked 509 00:38:46,880 --> 00:38:50,760 about it at that point when it was around thirty eight hundred. Then we 510 00:38:50,840 --> 00:38:52,880 just see this huge run up. Now we're at forty six hundred, and 511 00:38:52,960 --> 00:38:55,760 all we want to do is bye bye, bye, bye bye. That 512 00:38:55,840 --> 00:39:00,760 might be the signal, right, it definitely can they irrational Longerness say liquid, 513 00:39:01,039 --> 00:39:07,519 Yeah, we know that, right, But eventually people get too greedy 514 00:39:07,760 --> 00:39:09,400 and people get too fearful. It happens on both sides. Well, there's 515 00:39:09,400 --> 00:39:14,880 two ways that you can correct that that elevated price earnings ratial, right, 516 00:39:15,119 --> 00:39:19,880 One is to have stock prices decline. The other is to have earnings accelerate. 517 00:39:20,400 --> 00:39:25,039 We're not in an environment where you would expect accelerating earnings from the overall 518 00:39:25,079 --> 00:39:30,239 market, or in an environment where the Federal Reserve is trying very very hard 519 00:39:30,519 --> 00:39:36,280 to slow things down. That's not an environment where you're typically going to get 520 00:39:36,320 --> 00:39:42,119 accelerated earnings. You see this type of pricing for a market when you're coming 521 00:39:42,239 --> 00:39:46,960 out of a recession, when your growth is accelerating, and you think corporate 522 00:39:46,960 --> 00:39:52,199 earnings are going to accelerate dramatically, then you see price earnings ratials like we 523 00:39:52,280 --> 00:39:58,519 have now. You don't see them typically in this type of environment. You 524 00:39:58,559 --> 00:40:01,280 know, I'm hoid. You just mentioned the market can stay irrational longer than 525 00:40:01,360 --> 00:40:05,760 you can stay liquid. I have no problem being in the market. We 526 00:40:06,159 --> 00:40:12,639 are participating. We have been more cautious than necessary. In hindsight, you 527 00:40:12,679 --> 00:40:15,719 never know if you want to if you want a business where you're never wrong, 528 00:40:15,800 --> 00:40:17,679 this is not it right, you know, so we're wrong. We're 529 00:40:17,719 --> 00:40:22,559 wrong. We're right more than we're wrong, fortunately, But we've been too 530 00:40:22,639 --> 00:40:27,159 cautious. When the market was down around thirty eight hundred, I think the 531 00:40:27,280 --> 00:40:30,440 low for the last twelve months is thirty four ninety one, and I've been 532 00:40:30,440 --> 00:40:34,840 pretty animate over the last six months that that is going to be the low 533 00:40:35,320 --> 00:40:37,920 for the year. That is going to be low, and it now. 534 00:40:37,920 --> 00:40:40,639 I don't think there's anybody doubts that now. But when we were at thirty 535 00:40:40,639 --> 00:40:44,559 eight thirty seven, pouncing back and forth, I said I didn't There were 536 00:40:44,599 --> 00:40:47,039 people saying we're going to go and below that thirty four ninety one and set 537 00:40:47,039 --> 00:40:52,000 a new fifty two weeks old. I couldn't see that in the environment we 538 00:40:52,000 --> 00:40:54,159 were in. It was pretty verbal on this show about that's not going to 539 00:40:54,239 --> 00:40:58,960 happen. Thirty four ninety one is going to be the bottom, and guess 540 00:40:58,960 --> 00:41:00,559 what it is going to be the I think. I don't think if anybody 541 00:41:00,559 --> 00:41:06,320 would doubt that. Now. Well, in addition to the price earnings or 542 00:41:06,320 --> 00:41:08,599 I should be in hide. The second largest economy in the world, China 543 00:41:08,760 --> 00:41:14,719 is continuing to struggle. There was a report last week that the jobless rate 544 00:41:15,119 --> 00:41:19,719 for sixteen to twenty four year olds in China is twenty one point three percent. 545 00:41:20,519 --> 00:41:24,000 Twenty one point three percent unemployment in the sixteen to twenty four age rain. 546 00:41:24,280 --> 00:41:28,800 Many of them have gone home to live with their parents. There was 547 00:41:28,840 --> 00:41:32,400 a story about one gal that she just she just can't compete anymore in the 548 00:41:32,559 --> 00:41:36,480 in the business world. She just exhausted, can't do it anymore, a 549 00:41:36,519 --> 00:41:38,960 lot like the US. It doesn't that sound, doesn't that sound? Sawere? 550 00:41:39,280 --> 00:41:42,719 Yeah, doesn't that sound? Samwere? They push their kids a lot 551 00:41:42,719 --> 00:41:45,159 harder over there though, and you, oh, yeah, it's an interesting. 552 00:41:45,480 --> 00:41:46,840 The China play is interesting though, because you have a lot of these 553 00:41:46,840 --> 00:41:51,800 stocks that are so beaten up, like at JD dot Com, Ali Baba, 554 00:41:51,880 --> 00:41:54,599 and what China's doing is and wants to do is stimulate the same way 555 00:41:54,639 --> 00:41:59,400 we got stimulus checks. They're trying to do that coming up. So it's 556 00:41:59,440 --> 00:42:01,519 an interesting play. I mean, if economy is still in Shamble's unemployments at 557 00:42:01,599 --> 00:42:05,760 high you got that side, but then you also got the stimulus side, 558 00:42:05,800 --> 00:42:07,119 where if they give these people the checks, they're gonna be able to start 559 00:42:07,679 --> 00:42:12,599 using them. So is Baba, JD, PDD Are they all going to 560 00:42:12,639 --> 00:42:15,199 go even if it's not checks, even if it's you know, continual lower 561 00:42:15,239 --> 00:42:19,760 interest rates with China has kept them low. Yeah. A lot of these 562 00:42:19,800 --> 00:42:22,239 companies, especially the technology oriented companies, the PDD, the JD, the 563 00:42:22,639 --> 00:42:29,760 the Ali Baba, those are interesting plays because once these Chinese consumers really start 564 00:42:29,840 --> 00:42:35,000 spending, like we know they will eventually they are the biggest economy, well 565 00:42:35,039 --> 00:42:38,920 not the biggest, but the biggest population one of the most people with the 566 00:42:38,960 --> 00:42:43,039 most people. And what those are Ali Baba and JD dot Com Appment is 567 00:42:43,079 --> 00:42:45,119 the same as Amazon in size wise. Ali Baba is definitely the biggest, 568 00:42:45,159 --> 00:42:51,320 and then PDD is a smaller one, which is Timu and Timu is it's 569 00:42:51,559 --> 00:42:54,159 kind of the it's the much cheaper version of Ali Baba and Amazon over in 570 00:42:54,239 --> 00:42:59,159 China, and of course they're They're big problem is they're struggling in real estate 571 00:42:59,199 --> 00:43:04,880 market that's just extremely overbuilt real estate market. That is a bubble that about 572 00:43:04,880 --> 00:43:07,639 that a while ago. It's part of the culture there where you have to 573 00:43:07,679 --> 00:43:12,320 have two houses in order to be favorable to a woman. These guys were 574 00:43:12,360 --> 00:43:15,679 buying like lakehouses that they've never seen before. They would just buy them on 575 00:43:15,679 --> 00:43:17,360 on a picture so they could go to the girl's dad to see, like, 576 00:43:17,440 --> 00:43:21,840 this is what I have, Let me marry your daughter. The whole 577 00:43:21,840 --> 00:43:24,840 thing in the culture and the government afford the government built entire city said no 578 00:43:24,840 --> 00:43:29,360 one ever moved to. Also keep in mind that the majority of these Chinese 579 00:43:29,360 --> 00:43:32,039 are, you know, the waivers to the male side because of that one 580 00:43:32,199 --> 00:43:37,400 child policy that they had, so all those males have to buy the houses 581 00:43:37,440 --> 00:43:40,519 for the cultural dynamics of that of that culture. So it's it's a very 582 00:43:40,559 --> 00:43:45,360 interesting dynamic. They try to do populations controled by having one child and then 583 00:43:45,400 --> 00:43:46,800 all the people only wanted a son because they're the only ones that going to 584 00:43:46,840 --> 00:43:51,320 carry on the name. And now they're having population control, they're having to 585 00:43:51,320 --> 00:43:55,400 decline. You just have ghost towns now absolutely towns, and they're beautiful cities, 586 00:43:55,440 --> 00:44:01,719 beautiful cities, not one no one ever occupied. And really the reason 587 00:44:01,880 --> 00:44:07,000 China had such a rise in their powers. Everyone moved from rural to urban, 588 00:44:07,599 --> 00:44:13,159 right, and that's what brought China as a prosperous nation eventually. I 589 00:44:13,159 --> 00:44:15,760 mean, do you run out of rural people come into urban like what it's 590 00:44:16,360 --> 00:44:21,679 It's really interesting to keep an eye out on that. I'd expect that China's 591 00:44:21,800 --> 00:44:25,440 stocks probably be in the headlines pretty pretty bigly and then in the next three 592 00:44:25,440 --> 00:44:30,119 to four months, because I think they're way lower than a lot of the 593 00:44:30,159 --> 00:44:34,119 stocks. They're one of the most bullish countries that you can be investing in 594 00:44:34,599 --> 00:44:37,159 over the next six months. Yeah, I mean a full disclosure, we 595 00:44:37,199 --> 00:44:40,039 don't really have much exposure to the Chinese markets in like Ali, Baba and 596 00:44:40,000 --> 00:44:44,039 all. We have a little, but most of what we're in for exposure 597 00:44:44,079 --> 00:44:46,599 wise is win, which is a Macau and that's the gambling stock over Yeah, 598 00:44:46,599 --> 00:44:51,000 we got out of all the Chinese transparency. Yeah, we got out 599 00:44:51,000 --> 00:44:52,880 of half a win right now, but we just like it because that ten 600 00:44:52,960 --> 00:44:57,239 year, there's gonna be no more Casino's Bill for ten years in that area. 601 00:44:57,280 --> 00:45:00,880 I think probably our biggest exposure to China is Win and Starbucks. Again, 602 00:45:01,480 --> 00:45:07,159 China is starbucks number one market now? Is they building a new Starbucks 603 00:45:07,159 --> 00:45:09,559 on average every nine hours? Speaking of Starbucks is still like a worldwide like 604 00:45:10,079 --> 00:45:14,440 not so much, not necessarily just China right now, but they do move 605 00:45:14,519 --> 00:45:20,599 with China as the Chinese economy gives good reports. Starbucks like that as a 606 00:45:20,719 --> 00:45:24,639 Chinese economy economy numbers come in weeks. I don't like that, but I 607 00:45:24,679 --> 00:45:30,119 definitely think Starbucks is one of those stocks that I've looked at that have hugely 608 00:45:30,199 --> 00:45:32,960 lagged the market, and it's a great company. Right in these type of 609 00:45:34,039 --> 00:45:37,599 environments, it's really hard to find stocks to buy that haven't already run up. 610 00:45:37,679 --> 00:45:39,880 It is, and you know, a few come to my mind, 611 00:45:40,119 --> 00:45:47,159 and it's Disney and Starbucks and Raytheon and Raytheon, Raytheon that's brand new. 612 00:45:47,320 --> 00:45:52,239 Yeah, And so you look at those stocks and those are stocks you're comfortable 613 00:45:52,239 --> 00:45:53,880 owning for five ten years, right, they're great companies. You know, 614 00:45:53,920 --> 00:45:57,719 they're not going anywhere. It may just not be their time right now. 615 00:45:58,079 --> 00:46:00,360 Another one's Target, But I talked about it his monologue, how that got 616 00:46:00,480 --> 00:46:05,480 hit because of their whole movement against the anti woke or whatever. But they 617 00:46:05,480 --> 00:46:07,519 got away from a quick They're not. They didn't get hit as hard as 618 00:46:07,519 --> 00:46:09,719 an eyeser bush. And I was a bush just laid off hundreds of employees. 619 00:46:09,840 --> 00:46:14,320 And we were talking about the different demographics of Target, Like people who 620 00:46:14,320 --> 00:46:19,440 go to Target weren't normally very conservative, right, and people who were drinking 621 00:46:19,440 --> 00:46:23,320 by Light normally were conservatives. So the people the way bud Light you know, 622 00:46:23,440 --> 00:46:28,760 made their demographic mad, that's gonna stick. The way Target their demographic 623 00:46:29,119 --> 00:46:32,920 wasn't really there anyways on that political spectrum, bud Light is made just a 624 00:46:34,000 --> 00:46:37,760 giant mistake. And yeah, now bud Light's gonna continue to stick. But 625 00:46:37,920 --> 00:46:40,480 I don't think targets dilemma is gonna stick as long as you're seeing it with 626 00:46:40,639 --> 00:46:45,840 less competitor. Constellation Brands Stock has been killing it ever since that whole fiasco 627 00:46:45,840 --> 00:46:47,679 because they took over as the number one beer with Mandelo. Yeah, had 628 00:46:47,719 --> 00:46:52,280 great earnings last quarter and they're coming up on another quarter with bud Light still 629 00:46:52,280 --> 00:46:57,000 and shambles with this whole thing. I think was it Cores that reported earnings 630 00:46:57,000 --> 00:47:00,559 this week and they were up ten percent after reporting. I mean, all 631 00:47:00,599 --> 00:47:05,199 the other beer companies are really taking advantage. You're very well, Modelo, 632 00:47:05,320 --> 00:47:07,679 Cores, bud Lights, what you want to buy? Right, I said, 633 00:47:07,719 --> 00:47:09,599 screw bud Light, They're going Cores and Modelo. And I've been so 634 00:47:09,639 --> 00:47:14,599 surprised by how many people I've talked to that really care about that they won't 635 00:47:14,679 --> 00:47:15,880 drinking, and how they do care, how it has become a whole thing 636 00:47:15,920 --> 00:47:21,480 there. Yeah, it's and I thought it was maybe a one month fad. 637 00:47:21,559 --> 00:47:25,559 No, it's it's it's sticking. That's amazing that something like that can 638 00:47:25,679 --> 00:47:30,960 ruin an entire company. Right again, we appreciate you joining us on this 639 00:47:30,000 --> 00:47:32,679 Sunday morning. Um, looks like we're going to be in for a little 640 00:47:32,719 --> 00:47:36,360 bit of cooler weather next week, maybe back to normal, that would be 641 00:47:36,400 --> 00:47:38,519 wonderful. Is often wonder what it was like to live in Phoenix. We 642 00:47:38,559 --> 00:47:43,679 now know not good. We'll be back in a few minutes. Again, 643 00:47:43,719 --> 00:47:53,840 thanks for joining us on the money matter shows. It's a welcome back to 644 00:47:53,880 --> 00:47:57,239 the Money Matters Show. My name is Todd Glick. I'm here with Dean 645 00:47:57,280 --> 00:48:00,840 Greenberg, David Sherwood, and Dylan Greenberg. It's been a fun week in 646 00:48:00,880 --> 00:48:02,639 the markets. As we said, we had the Federal Reserve come out on 647 00:48:02,679 --> 00:48:07,519 Wednesday, raised another twenty five basis points on the week. The dal Jones 648 00:48:07,559 --> 00:48:10,840 finally broke its thirteen day winning streak. It failed on Thursday to eke out 649 00:48:10,880 --> 00:48:15,400 a record tying fourteen, which would have tied the record in nineteen eighty seven. 650 00:48:15,440 --> 00:48:19,159 Still finished up on the week point seven percent. The SMP up one 651 00:48:19,199 --> 00:48:21,960 percent. Believe it or not, SMP has been up nine weeks out of 652 00:48:21,960 --> 00:48:24,639 the last eleven on an absolute tear. Nazdak led the way this week, 653 00:48:24,719 --> 00:48:30,039 up two percent on the back of those big corporate earnings, mostly off of 654 00:48:30,159 --> 00:48:32,800 Meta Russell two thousand, The midcaps up one percent, and the equal weighted 655 00:48:34,079 --> 00:48:37,760 only up point two showing that overall it was the big companies that led the 656 00:48:37,800 --> 00:48:42,480 way for the SMP five hundred this week. We did and we did tie 657 00:48:42,519 --> 00:48:45,480 to the I may misunderstood, but we did tie the record in nineteen eighty 658 00:48:45,519 --> 00:48:49,519 seven, but we didn't tie the record, not the all time record, 659 00:48:49,559 --> 00:48:53,199 which would have taken one more day in eighteen ninety seven, and that was 660 00:48:53,320 --> 00:48:59,559 a Dylan said it was the doc market even run even around DA and look 661 00:48:59,599 --> 00:49:02,559 it up, it was one year old. It's the second year of the 662 00:49:02,639 --> 00:49:07,199 Dow Jones Industrial average. Gold had lost seven bucks on a week we said 663 00:49:07,239 --> 00:49:08,800 it. Oil was up three and a half bucks. He had a three 664 00:49:08,880 --> 00:49:15,079 month high at eighty fifty goal down seven bucks to nineteen sixty six. Bitcoin 665 00:49:15,199 --> 00:49:21,159 keeps edging lower after the big June rally thirty nine through shid me twenty nine 666 00:49:21,280 --> 00:49:25,800 three last week, and the regional bank index just continues to be a spaceship, 667 00:49:25,840 --> 00:49:30,320 which is good because the regional banking crisis was what sent us into the 668 00:49:30,440 --> 00:49:37,199 tailspin earlier. Earlier, long year yep, yep. The low on the 669 00:49:37,360 --> 00:49:43,159 regional bank ETF Dylan was on May the fourth, actually, and stock was 670 00:49:43,280 --> 00:49:45,880 up five percent this week. It's a four month high. It's forty percent 671 00:49:46,599 --> 00:49:50,719 above the low it hit on May the fourth. You know the interesting thing 672 00:49:50,719 --> 00:49:54,840 about oil is I saw a report that says energy companies are reporting the steepest 673 00:49:54,880 --> 00:50:01,599 decline in operating rigs in the last three years. So that can't help prices 674 00:50:01,679 --> 00:50:07,360 going down right less supply less operating rigs means price go up. It's going 675 00:50:07,440 --> 00:50:12,920 to be really interesting how the fat can combat. You know, I think 676 00:50:13,199 --> 00:50:15,960 he was very smart saying I'm focusing on the core, you know, PC 677 00:50:16,159 --> 00:50:21,440 and CPI, because that removes the energy picture out of it. Because, 678 00:50:21,519 --> 00:50:24,400 like you said, we should see some energy increasing, we should see the 679 00:50:24,400 --> 00:50:29,400 headline increase next time in August. And because of the energy. It's just 680 00:50:29,400 --> 00:50:36,360 so frustrating to see our country go from energy efficient to dependent again upon people 681 00:50:36,440 --> 00:50:40,280 that are not that dependable. Window. Yeah, it's very frustrating, very 682 00:50:40,280 --> 00:50:45,119 frustrating that oil companies. And I can't even imagine working for an oil company 683 00:50:45,199 --> 00:50:51,159 that has to be doubly frustrating or tripli frustrating. Um. Every week I 684 00:50:51,159 --> 00:50:53,599 talked a little bit about electric vehicles. This week it's about electric vehicle stocks. 685 00:50:54,400 --> 00:51:00,519 Tesla was downgraded to sell at ubs. They said recent gains fully account 686 00:51:00,559 --> 00:51:05,679 for the demand boost that came from lower prices. The one thing analysts may 687 00:51:05,719 --> 00:51:07,079 be missing, this is from me now. The one thing the analysts may 688 00:51:07,119 --> 00:51:15,119 be missing is the value of the charging stations that Tesla has become dominant in 689 00:51:15,679 --> 00:51:20,920 Tesla's the Tesla's charging stations you see them everywhere. Ford has gone that way, 690 00:51:20,960 --> 00:51:24,639 GM's gone that way, Volvo, a Rivian and others perhaps will join. 691 00:51:25,039 --> 00:51:29,320 I saw an article last week where some of the companies are trying to 692 00:51:29,599 --> 00:51:32,639 go off and start their own charging company. BMW was one of them. 693 00:51:32,719 --> 00:51:36,719 They're going to start their own charging stations, and well they were doing like 694 00:51:36,760 --> 00:51:40,280 a United there's like five or four yeah, three four, five yeah, 695 00:51:40,400 --> 00:51:45,559 right, all join up, and but they're starting from zero. Tesla has 696 00:51:45,559 --> 00:51:50,599 twenty thousands of trying to have the resources of five different big companies, and 697 00:51:50,679 --> 00:51:52,639 they're just they're just missing it. Though. I think that I think investors 698 00:51:52,639 --> 00:51:57,000 are maybe or analysts maybe are missing that every time you go to one of 699 00:51:57,000 --> 00:52:02,119 those super charters, it's twenty five thirty bucks every single time. And between 700 00:52:02,159 --> 00:52:06,880 the time that I got my car and the time I had my home charger 701 00:52:06,920 --> 00:52:09,960 installed, I went three weeks of pretty much hate in this car because I 702 00:52:10,039 --> 00:52:14,159 had to go to superchargers. But there are a lot of people that live 703 00:52:14,199 --> 00:52:20,079 in apartments and complexes where they can't have a two hundred and forty volt charger 704 00:52:20,480 --> 00:52:22,440 or outlet I'm sorry, outlets, and so they have to go to these 705 00:52:22,480 --> 00:52:28,599 superchargers in addition, anyone who's taken their car out of town has to go 706 00:52:28,639 --> 00:52:30,840 to a supercharger. My daughter lives in Orange County, and when she goes 707 00:52:30,880 --> 00:52:36,119 up to Los Angeles to visit her friends or for a business, it's about 708 00:52:36,159 --> 00:52:38,360 one hundred mile bust Sam as Phoenix. She has to go to the supercharger 709 00:52:38,400 --> 00:52:43,880 before she can come home. Twenty to thirty bucks every single time. Millions 710 00:52:43,880 --> 00:52:47,119 of people doing that every single day. That's going to be important. I 711 00:52:47,159 --> 00:52:53,599 wonder what kind of electric costs that cost Tesla as far as obviously the charge 712 00:52:53,639 --> 00:52:57,679 twenty five or thirty bucks, the electric for the chargers free for Tesla. 713 00:52:57,880 --> 00:53:00,280 Yeah right, they have to pay interesting, yeah, interest. It would 714 00:53:00,280 --> 00:53:04,719 be a good question related to that. GM was down four percent on two 715 00:53:04,800 --> 00:53:10,440 the despite reporting better than expected quarterly results. They're electric vehicle deliveries for the 716 00:53:10,519 --> 00:53:15,599 second quarter were fifteen thousand, five to sixty two. Now, you may 717 00:53:15,639 --> 00:53:22,400 recall that Tesla delivered four hundred and sixty six thousand, GM delivered fifteen thousand 718 00:53:22,880 --> 00:53:29,239 Ford they delivered UH fourteen thousand, eight hundred and forty three, So fourteen 719 00:53:29,280 --> 00:53:32,199 thousand for Ford, fifteen thousand for GM, four hundred and sixty six thousand 720 00:53:32,280 --> 00:53:36,239 for Tesla. Yeah, so what you've got is Tesla versus the world, 721 00:53:36,360 --> 00:53:42,360 and Tesla is winning. It's just there. Did Ford has wonderful electric products, 722 00:53:42,400 --> 00:53:46,440 the F one hundred pickup, the Moche car, I think is the 723 00:53:46,440 --> 00:53:50,400 coolest electric car out there. You just can't get them. You can't get 724 00:53:50,440 --> 00:53:52,320 your hands on them. When I see one around town, it's like, 725 00:53:52,360 --> 00:53:57,920 oh there, you know it's it's it's it's way more special than a Tesla 726 00:53:57,840 --> 00:54:04,280 could. They're so rare that's ridiculous. And that's the problem that they're running 727 00:54:04,320 --> 00:54:09,239 into. GM and Ford are both losing billions of dollars on these on this 728 00:54:09,360 --> 00:54:15,360 electric vehicle arm of their business, and they're trying to compete with somebody that's 729 00:54:15,400 --> 00:54:20,039 been doing it for fourteen years. And the people that've been doing it for 730 00:54:20,119 --> 00:54:22,840 fourteen years Den have it figured out right, They've been ahead of the game. 731 00:54:24,159 --> 00:54:30,360 But I still think, like you, people getting these cause of finding 732 00:54:30,400 --> 00:54:34,039 that it's not exactly what they thought it was going to be. The car 733 00:54:34,079 --> 00:54:39,239 itself running, yes, but the mileage on it, finding places to plug 734 00:54:39,239 --> 00:54:44,039 it in different, Yeah, it is. I will say it's the most 735 00:54:44,480 --> 00:54:50,280 spectacular experience I've ever had in an automobile. It is quiet, it is 736 00:54:51,119 --> 00:54:55,280 smooth, it is fast like lightning. But charging is an issue, and 737 00:54:55,440 --> 00:55:00,480 range is an issue. And I can't believe fourteen years down the road they've 738 00:55:00,480 --> 00:55:06,320 managed to stretch the range by about fifteen twenty percent more. That's it, 739 00:55:06,400 --> 00:55:09,199 because they've had these costs for ten years fourteen, yeah, fourteen, two 740 00:55:09,239 --> 00:55:13,360 thousand and eight. I remember to portion about ten maybe not ten, maybe 741 00:55:13,360 --> 00:55:15,840 eight years ago. They came out with all the electrics and they they wanted 742 00:55:15,880 --> 00:55:21,559 me to try one, and and I hated it because you're saying it's quiet. 743 00:55:21,639 --> 00:55:23,679 It's so quiet you don't even know what's going. I love to hear 744 00:55:23,719 --> 00:55:27,840 it. Yeah, that is true. Yeah, some people really like that 745 00:55:27,960 --> 00:55:30,239 feedback from the engine. So that I did, I was like, I 746 00:55:30,239 --> 00:55:34,599 didn't even know the call was going. I didn't know it was on the 747 00:55:34,679 --> 00:55:37,119 thing that's the most addictive to me about it is the speed. And that's 748 00:55:37,159 --> 00:55:40,119 and I'm not talking about, you know, going seventy miles an hour down 749 00:55:40,159 --> 00:55:44,679 Broadway. I'm talking about the ability to dart in and out of traffic, 750 00:55:44,719 --> 00:55:49,760 the ability to get into traffic, and that's so much safer way traffic. 751 00:55:49,960 --> 00:55:54,400 The acceleration right, the acceleration it. I think it decreases the risk of 752 00:55:54,559 --> 00:55:59,400 driving the car. There's things you can do that you wouldn't be able to 753 00:55:59,400 --> 00:56:02,079 do in a gas part automobile. But Dan, you're right, range is 754 00:56:02,119 --> 00:56:07,039 still a problem. Now. Toyota announced took a couple of weeks ago that 755 00:56:07,239 --> 00:56:10,760 in the lab they've come up with a solid state battery that will have a 756 00:56:10,840 --> 00:56:15,320 seven hundred and fifty mile range and charge in ten minutes. If that were 757 00:56:15,360 --> 00:56:19,440 to happen, that's a game changer. Huge, that's a game changer. 758 00:56:19,519 --> 00:56:22,360 And we start talking about gasoline at four bucks a gallon. I couldn't tell 759 00:56:22,360 --> 00:56:27,199 you what gas is right now because they don't buy any What a shame, 760 00:56:27,320 --> 00:56:30,800 right, you know, technology is exponential, so it's only a matter of 761 00:56:30,800 --> 00:56:32,599 a time. Just because it took ten years to do that one big increase, 762 00:56:32,679 --> 00:56:36,639 that means the next time it should only take five and then they'll they'll 763 00:56:36,679 --> 00:56:38,480 get disfigured out. And will it change the planet? No, it's not 764 00:56:38,519 --> 00:56:40,719 a change. Well, let's put it this way, Dave. Here's where 765 00:56:40,719 --> 00:56:45,159 the gas is. I filled out my cause it only had about thirty five 766 00:56:45,320 --> 00:56:47,440 forty miles left. I filled it up to the top. It was thirty 767 00:56:47,440 --> 00:56:53,320 dollars less. This time, thirty dollars less Filipo tank. Then when wow, 768 00:56:53,400 --> 00:56:57,960 that was away so two months ago. Because gasoline prices are rising, 769 00:56:58,039 --> 00:57:00,480 right, I'm just telling them thirty dollars less. Yeah, I was happy. 770 00:57:00,639 --> 00:57:04,119 I know that. I all, I know. That's been about twenty 771 00:57:04,119 --> 00:57:07,840 five hundred dollars a year on gasoline and now I'm spending a zero. Now 772 00:57:07,840 --> 00:57:09,960 you're just spending a lot of time in the heat trying to plug it in. 773 00:57:10,519 --> 00:57:13,599 Oh no, no timing to heat. What are you talking about? 774 00:57:13,639 --> 00:57:15,039 So so all the solo stuff, you know, we gotta do is we 775 00:57:15,039 --> 00:57:21,519 gotta get somebody on here that actually does solar also, you know, talk 776 00:57:21,559 --> 00:57:25,079 about where that industry is going and and uh why it's if it's effective and 777 00:57:25,159 --> 00:57:30,159 not effective, and well obviously they'll tell us effective. But yeah, but 778 00:57:30,199 --> 00:57:32,920 we should talk to about that. We should bring it all in here because 779 00:57:32,920 --> 00:57:36,800 there's a few companies in town here and we know a few people will have 780 00:57:36,880 --> 00:57:38,760 them come on the radio and talk about what it does and how it does 781 00:57:38,800 --> 00:57:44,039 it and what's the future of it. You know, because I tell you 782 00:57:44,079 --> 00:57:46,280 fourteen thousand cars by Ford that doesn't seem like a lot, you know, 783 00:57:46,440 --> 00:57:50,360 no, none, It's it's like nothing, right, it's not about four 784 00:57:50,480 --> 00:57:52,920 hundred and sixty six thousand, yeah, everything. But is that because the 785 00:57:53,039 --> 00:58:00,559 Ford, the person buying the Ford is more I want an American car that 786 00:58:00,559 --> 00:58:02,320 that's not on electric. I don't want to go through all the stuff because 787 00:58:02,360 --> 00:58:06,960 it's obviously it's a lower lower price car. Well, it's the fact that 788 00:58:07,000 --> 00:58:08,400 also it takes a year, not much. It's not much lower price. 789 00:58:08,559 --> 00:58:13,840 It takes a year to get your car. Yeah, it takes yeah. 790 00:58:13,960 --> 00:58:16,320 Yeah, they're just they're just not very good at it yet. Um, 791 00:58:16,400 --> 00:58:20,119 if they would get good at it, I think they could give Tesla run 792 00:58:20,159 --> 00:58:22,320 for their money. It was that that way of appeasing the government. Right 793 00:58:22,360 --> 00:58:27,039 now that they're working towards it and really don't care. Maybe they're just not 794 00:58:27,119 --> 00:58:30,000 that into it. I know Farley, the CEO of Ford, has been 795 00:58:30,079 --> 00:58:34,800 really big on They talk it, but then they get subsidized by the oil 796 00:58:34,840 --> 00:58:37,639 companies they're doing. The good news is they're doing really really well on the 797 00:58:37,639 --> 00:58:40,400 other side of the business. You know. I think they call that Ford 798 00:58:40,440 --> 00:58:46,760 Blue, and the electric vehicle side of the the UH business is called Model 799 00:58:46,880 --> 00:58:51,800 E. I think that's hilarious. I think that's very clever. Model. 800 00:58:52,039 --> 00:58:54,320 I think it's Model Blue, which is the gas power, and then Model 801 00:58:54,360 --> 00:58:58,920 E, which I thought was pretty pretty cute. I don't say Model blue. 802 00:58:59,039 --> 00:59:00,440 Why not like Model G. I don't know why they called it blue, 803 00:59:00,480 --> 00:59:07,039 probably because Ford's Here's how Solar's doing up. First Solar stock up one 804 00:59:07,079 --> 00:59:10,320 hundred and sixty percent in the last twelve months, added another ten percent on 805 00:59:10,360 --> 00:59:15,880 Friday. Amazing that income for the most recent quarter fifty percent above expectations. 806 00:59:15,039 --> 00:59:19,880 Did it finish up ten percent? Obviously? Obviously I was going to say, 807 00:59:20,039 --> 00:59:22,840 because I was watching First Solo. It was really interesting. It was 808 00:59:22,920 --> 00:59:27,039 up thirteen percent to start today and then midday it was zero percent. Lost 809 00:59:27,280 --> 00:59:30,000 back, lost the game. We'll be back. Guys, appreciate your listen 810 00:59:30,000 --> 00:59:31,480 to. It's very about We're in the first half of the second hour. 811 00:59:32,079 --> 00:59:35,719 The first we got another four. Yeah, yeah, we're all good. 812 00:59:35,880 --> 00:59:38,079 He got called away, so he got called away to screwed up. Sorry 813 00:59:38,559 --> 00:59:42,079 to wrap up, I wanted to talk a little bit about all auto loans 814 00:59:42,119 --> 00:59:45,280 because more Americans are getting turned down for auto loans. Uh. The rejection 815 00:59:45,360 --> 00:59:51,480 rate has almost doubled since late twenty twenty two. So um not going to 816 00:59:51,559 --> 00:59:55,599 be a huge factor when it comes to GDP. Auto isn't a huge input, 817 00:59:55,719 --> 01:00:00,159 but something to keep note of. Rates are high. Yep, it's 818 01:00:00,159 --> 01:00:04,039 on auto. Owns are hiding super seven eighty nine percent, even with good 819 01:00:04,039 --> 01:00:07,559 credit. You know, it's funny, you know, I got a lease 820 01:00:07,480 --> 01:00:12,760 and it's cheaper for me to buy the car because the car is worth more 821 01:00:12,800 --> 01:00:15,840 now than the lease. Yeah, so I just decided to buy it. 822 01:00:16,119 --> 01:00:19,719 I did. At the end of the day, value means everything to me. 823 01:00:20,079 --> 01:00:22,320 It's not just all I got. I'm just gonna spend money. I 824 01:00:22,400 --> 01:00:25,920 want value. It's hard to it's hard not to buy your car if you 825 01:00:25,960 --> 01:00:29,159 can buy it and sell it for more than it's worth. You know, 826 01:00:29,199 --> 01:00:31,119 we talked about I do I do. You know, we talked about electric 827 01:00:31,199 --> 01:00:37,519 vehicles. But let's talk a little bit about gasoline. We've wondered on this 828 01:00:37,559 --> 01:00:43,039 show for a while why people stand and these are sitting these long lines at 829 01:00:43,079 --> 01:00:46,760 Costco to get gas that's roughly the same price as it is anywhere else in 830 01:00:46,800 --> 01:00:52,239 town. And our my friend Carl inform me that it's because Costco, and 831 01:00:52,280 --> 01:00:58,559 I didn't know about this has what they call top tier gasoline, and top 832 01:00:58,599 --> 01:01:02,519 tier gasoline, which is which is adds as more detergent to the gasoline. 833 01:01:02,519 --> 01:01:07,320 It's actually as a separate class of premium gasoline called top tier, adds more 834 01:01:07,400 --> 01:01:14,280 detergent to the gasoline. It keeps your engine from the fuel injectors, keeps 835 01:01:14,280 --> 01:01:19,639 the fuel injectors from from clogging up. And so the reason people go to 836 01:01:19,679 --> 01:01:22,719 Costco is because you can get top tier gasoline, which is what Costico carries 837 01:01:23,400 --> 01:01:28,880 at a low prices. Now there's other in fairness, there's other top tier 838 01:01:28,880 --> 01:01:34,719 gas providers, but as you look at Costco's prices, those that have prices 839 01:01:34,760 --> 01:01:40,920 that are similar to Costco are generally in the Irvington South Campbell Park area. 840 01:01:42,559 --> 01:01:45,119 So if you live midtown, that's not real convenient to drive over there. 841 01:01:45,880 --> 01:01:49,960 So that's the reason that when you go by costically you see these long lines. 842 01:01:50,039 --> 01:01:52,559 Not that the gas is necessarily a lot cheaper, but also you're still 843 01:01:52,599 --> 01:01:57,480 painting more for the premium version of the gasoline. You paint more than your 844 01:01:57,480 --> 01:02:02,199 otherwise would if you have just not well compared to what it because if you 845 01:02:02,280 --> 01:02:06,039 had, even if you're at Costco, you have the basic version or the 846 01:02:06,079 --> 01:02:07,519 top tier, that's going to be a price difference. No, No, 847 01:02:08,159 --> 01:02:13,679 the only gasole the only premium gasoline the Costico carries is top tier. So 848 01:02:14,239 --> 01:02:17,480 Costco only carries one version of gas. No, Todd, listen to me, 849 01:02:19,039 --> 01:02:22,000 premium gas. I know that regular. What I'm trying to tell you 850 01:02:22,119 --> 01:02:27,079 is if you have unregular gas that doesn't clear the fuel injectors eventually, the 851 01:02:27,079 --> 01:02:30,800 theory is you have to buy new fuel injectors. That cost is already baked 852 01:02:30,840 --> 01:02:35,360 into the extra every round you're getting for gas. I don't I don't pretend 853 01:02:35,400 --> 01:02:38,039 to be an expert on gas, but the bottom line is people. Well, 854 01:02:38,079 --> 01:02:40,880 first of all, a lot of people are at Costcal already, so 855 01:02:40,920 --> 01:02:45,480 it's no big stretch to just stop there. And and it is five to 856 01:02:45,519 --> 01:02:47,880 ten minutes it takes to you know that you wouldn't spend somewhere else. Big 857 01:02:47,960 --> 01:02:52,000 deal. Five to ten minutes, you know you're getting high quality gas at 858 01:02:52,039 --> 01:02:55,159 low prices. That's the bottom line. Now, is the de Churgent added 859 01:02:55,199 --> 01:03:00,400 to their regular and to their their mid grade? I have no idea because 860 01:03:00,400 --> 01:03:05,000 I'm not a gas expert, but the answer to that question is number one, 861 01:03:05,039 --> 01:03:07,960 the people are already there anyway. Number Two, you're getting as high 862 01:03:07,079 --> 01:03:15,119 quality gas as you can get at low prices. That's kind of that's I 863 01:03:15,119 --> 01:03:22,440 thought, that's kind of intreaty. Oh um, Microsoft forty four percent this 864 01:03:22,519 --> 01:03:27,360 year reported revenue and it didn't come above expectations, but drop four percent. 865 01:03:28,400 --> 01:03:30,679 Yeah, we actually found that as a little buying opportunity, yep, because 866 01:03:30,679 --> 01:03:34,960 it's been been on a tarror recently. So we bought a little bit, 867 01:03:34,960 --> 01:03:37,360 not a ton, but just attitude a little bit. Well if you didn't 868 01:03:37,360 --> 01:03:38,320 have it, that's why you put a little bit on. Yeah, right 869 01:03:38,360 --> 01:03:40,559 there, just got our feet wet. Yeah, we discussed, uh. 870 01:03:40,679 --> 01:03:45,280 I mean, obviously my monologue, I talked about when markets are doing what 871 01:03:45,280 --> 01:03:47,360 they're doing and you're trying to get in but don't want to just get burning 872 01:03:47,440 --> 01:03:51,239 coming down, look for the stocks that have retreated a little bit. That 873 01:03:51,360 --> 01:03:53,880 a good quality stocks, I e. Microsoft, The other one was raytheon 874 01:03:54,280 --> 01:03:58,119 and the other one one was on the under one third it was Target. 875 01:03:58,639 --> 01:04:00,960 Starbucks too, were talked about Yeah, yeah in Sawbucks. I mean, 876 01:04:01,360 --> 01:04:05,920 look for opportunities, just start to build a little position, knowing it'd be 877 01:04:05,960 --> 01:04:11,159 a little volatile. But like everything, I mean, all these stocks that 878 01:04:11,320 --> 01:04:13,880 come down, I mean and I look at Bowling, No one wanted bowling 879 01:04:13,880 --> 01:04:17,039 at ninety nine. I'm just gonna bring up ball, right, Yeah. 880 01:04:17,079 --> 01:04:20,039 And they had all the problems, all the problems, all the problems, 881 01:04:20,280 --> 01:04:24,039 and then all of a sudden boom, hey, Intel off the ground at 882 01:04:24,079 --> 01:04:27,039 twenty four, back to what thirty four thirty five dollars? Now, yeah, 883 01:04:27,119 --> 01:04:30,760 I mean, you know, these good quality companies over time figure it 884 01:04:30,800 --> 01:04:36,199 out. You know, it's the biggest one of them all. Ge I 885 01:04:36,280 --> 01:04:40,800 know they as I know they did a reverse split. Okay, but even 886 01:04:40,840 --> 01:04:43,639 after the reverse split that I'll make it all new highs No, I didn't. 887 01:04:43,639 --> 01:04:45,760 Then. One thing you want to do when when a company reverse splits 888 01:04:46,079 --> 01:04:48,719 is you want to get out. Yep, you go. It's been dan. 889 01:04:48,880 --> 01:04:51,119 You and I both know that's the kiss of death. It's different. 890 01:04:51,159 --> 01:04:57,480 They pulled it off again. H G. Is an exception. In twenty 891 01:04:57,519 --> 01:05:00,440 twenty one, they did a one for eight reverse splay that immediately sent the 892 01:05:00,519 --> 01:05:04,320 shares lower because everybody knows when you do did it from what you get out 893 01:05:04,400 --> 01:05:08,320 six or seven dollars? Yeah? I was down in there, yeah, 894 01:05:08,360 --> 01:05:11,920 because I remember the side was about forty fifty bucks there and now what is 895 01:05:11,920 --> 01:05:15,079 one hundred and twenty or something? Right, is it stabilized in mid Its 896 01:05:15,119 --> 01:05:18,519 stabilized in mid twenty twenty two, and it's more than doubled since then. 897 01:05:18,840 --> 01:05:23,159 Look at the regional banks, Look at a Lions Bank. Yeah, cut 898 01:05:23,159 --> 01:05:25,480 down to eleven that day, but you wouldn't get it, but you could 899 01:05:25,480 --> 01:05:29,519 have gotten between fifteen and twenty fifty one bucks. Yeah, we were talking. 900 01:05:29,519 --> 01:05:32,760 We talked about the regional bank etf as forty percent since the may Low. 901 01:05:32,920 --> 01:05:41,440 Yeah May may Gie's been hit a six year high on Tuesday and they 902 01:05:41,519 --> 01:05:45,639 reported stronger than expected erneys. They boosted full year guidance. Den you talked 903 01:05:45,639 --> 01:05:49,400 about Intel, it's been a laggered for years, rebounded thirty three percent this 904 01:05:49,480 --> 01:05:54,679 year, six percent higher. On Friday, they reported a return to profitability 905 01:05:55,199 --> 01:05:59,199 after two quarters have lost this then interestingly they give up up beat guidance. 906 01:05:59,599 --> 01:06:01,360 But you know, we're talking about all individual stocks and stuff like that. 907 01:06:01,400 --> 01:06:04,519 You can't get to that unless you put the plan together, because you don't 908 01:06:04,519 --> 01:06:10,199 know how much or what your risk tolerance is unless you go through the process. 909 01:06:11,039 --> 01:06:13,960 Right, and not only that, I will say, if we go 910 01:06:14,000 --> 01:06:16,199 through the risk tolerance and you have a very low risk tolerance, and then 911 01:06:16,199 --> 01:06:19,920 it's not time for stocks let's take advantage of these high interest rates. The 912 01:06:20,000 --> 01:06:24,239 MAGA, that multi year guaranteed annuity we've talked a lot about on the show. 913 01:06:24,639 --> 01:06:28,239 They have now increased the rates again. Now it's not five point two, 914 01:06:28,280 --> 01:06:30,519 it's five point three percent. You can lock in that rate for five 915 01:06:30,599 --> 01:06:35,519 years, compounding guaranteed tax defer. Not only that, if you don't want 916 01:06:35,519 --> 01:06:39,079 to do five years, you can do seven, you can do three. 917 01:06:39,199 --> 01:06:43,280 Obviously rates would be different, but take advantage. If you are a conservative 918 01:06:43,280 --> 01:06:45,599 person and you have a lot of money in the savings a bank that's only 919 01:06:45,639 --> 01:06:49,079 earning four percent, and I know a lot of savings accounts have up to 920 01:06:49,239 --> 01:06:55,880 their ap wise to try to keep those reserves at their banks. But you 921 01:06:56,719 --> 01:07:00,679 don't give up an extra one percent just because you think it's the most safe 922 01:07:00,679 --> 01:07:02,239 place in the world. At the end of the day, the banks are 923 01:07:02,280 --> 01:07:05,920 only insured up to two hundred and fifty right now. The MIGA is insured 924 01:07:05,960 --> 01:07:09,119 up to two fifty two. But then you look at the treasuries, you're 925 01:07:09,119 --> 01:07:12,519 insured one hundred percent, right and you have more liquidity. You won't get 926 01:07:12,519 --> 01:07:15,880 the same five point three for five years. Because of the inversion that we 927 01:07:15,920 --> 01:07:18,239 have in the yield curve. But there are a lot of opportunities for safe 928 01:07:18,320 --> 01:07:24,039 money, and so coming to us doing the financial plan, we can see 929 01:07:24,079 --> 01:07:27,559 whether you are a safe money candidate or a candidate to take advantage of some 930 01:07:27,599 --> 01:07:30,360 of these lower earning stocks where we can get in. There are great companies 931 01:07:30,440 --> 01:07:33,039 you'd love to own over the next five to ten years. One thing that 932 01:07:33,079 --> 01:07:35,960 comes to mind when you're talking about this is why why would I lock in 933 01:07:36,440 --> 01:07:41,199 five years if I can do treasuries that are totally liquid, And of course 934 01:07:41,239 --> 01:07:44,599 the region for that is a five year treasury pan about four Yeah, it's 935 01:07:44,599 --> 01:07:49,639 four percent because because the market believes there's going to begin ourcation, you divide 936 01:07:49,639 --> 01:07:53,440 it up one two three, and then you do the miga out to fifty 937 01:07:53,480 --> 01:07:58,800 year miga. Okay, you're making fun of me again. Day Hello New 938 01:07:58,840 --> 01:08:00,679 York came out, think about that. So so yeah, five hundred thousand, 939 01:08:01,119 --> 01:08:03,679 you do one hundred, one hundred, one hundred, and then two 940 01:08:03,760 --> 01:08:09,079 hundred, right, and then you take in what we were talking about earlier, 941 01:08:09,159 --> 01:08:13,079 the ultra conservative investor. You take the pres the interest off of it, 942 01:08:13,280 --> 01:08:15,600 and now you put it into the index. Is you still have your 943 01:08:15,640 --> 01:08:20,079 preservation of capital, and then you get a little bit of an upside push 944 01:08:20,119 --> 01:08:25,239 with the money going into the SP five hundred, the NAVSAC whatever. It 945 01:08:25,239 --> 01:08:28,760 would be. Very typical arrow you and I have had in our quivers for 946 01:08:28,760 --> 01:08:34,960 forty years is zero coupon bonds as a protection with stock investments that went away, 947 01:08:35,199 --> 01:08:39,439 something away that went away for about four or five years. Something we 948 01:08:39,479 --> 01:08:42,960 also notice when we do the financial plan is when someone is able to put 949 01:08:43,000 --> 01:08:45,960 in all their assets in one page, they finally realize how many different accounts 950 01:08:45,960 --> 01:08:49,159 they have and it kind of stresses them out because at the end of the 951 01:08:49,239 --> 01:08:53,800 day having to remember all those logging, all those passwords, and it's just 952 01:08:54,079 --> 01:08:57,960 convoluted. When you can really simplify your life with a lot of these accounts 953 01:08:57,960 --> 01:09:00,560 being merged into one. A lot of them common ones are the old four 954 01:09:00,600 --> 01:09:05,119 oh one ks or the old TSPs. Yes, we can absolutely roll that 955 01:09:05,199 --> 01:09:11,720 into an IRA. You won't have any taxable liability. It's just basically changing 956 01:09:11,720 --> 01:09:15,199 the title from a four oh one K or a TSP into an IRA. 957 01:09:15,439 --> 01:09:17,000 Yeah, the same thing, but more options. And with that you can 958 01:09:17,000 --> 01:09:20,319 solidate into the IRA and you will be invested based on your risk tolerance, 959 01:09:20,520 --> 01:09:23,640 which if you had an old four own k from thirty years ago, you 960 01:09:23,720 --> 01:09:27,079 might not be invested the same way you want to be today with your risk 961 01:09:27,159 --> 01:09:30,399 tolerance. So guys, you know we always talked that, well one team 962 01:09:30,479 --> 01:09:33,319 here. We work as a team, not individuals. So I'm gonna let 963 01:09:33,359 --> 01:09:38,359 Dylan explain to you the process if you actually come in and take advantage of 964 01:09:38,399 --> 01:09:43,720 a no cost, free, complimentary whatever you want to call it, a 965 01:09:43,840 --> 01:09:46,800 financial plan. So when they walk in the door, yeah, step one 966 01:09:46,880 --> 01:09:49,640 is if you call us or if you walk in the door, really call 967 01:09:49,720 --> 01:09:53,279 us or email us, because then we can get you going on what you 968 01:09:53,319 --> 01:09:56,000 need to bring to the first meeting. Because that's step one is the first 969 01:09:56,000 --> 01:09:59,800 meeting. We mean, Todd create the financial plan with you, go through 970 01:10:00,039 --> 01:10:03,880 everything from your expenses to your pensions, to your investments, to your mortgage. 971 01:10:04,840 --> 01:10:08,479 Do you have anything big coming up? Any big expenses? You want 972 01:10:08,520 --> 01:10:10,680 to buy a new car in RV. Do you have a kid's wedding that 973 01:10:10,760 --> 01:10:13,760 you want to pay for? That all goes into the financial plan. We 974 01:10:13,880 --> 01:10:16,680 create that and we see we get your confidence level based off of a Monte 975 01:10:16,720 --> 01:10:21,359 Carlo simulation where it runs a thousand different scenarios of returns based on your portfolio 976 01:10:21,960 --> 01:10:26,319 and if we shoot for something about eighty percent or higher confidence. If you're 977 01:10:26,359 --> 01:10:30,279 there, then your option, your opportunity of your retirement being successful will be 978 01:10:30,279 --> 01:10:35,359 pretty high. From there, the second meeting is our proposal meeting. We 979 01:10:35,359 --> 01:10:39,920 will gather all that information. We'll come up with our suggestions, our ideas 980 01:10:40,079 --> 01:10:43,960 of how we would build your portfolio if you were to invest with Greenberg Financial. 981 01:10:44,000 --> 01:10:45,399 When you say we we all do it. We all don't look at 982 01:10:45,399 --> 01:10:47,720 it. We all discuss it, come up with Tod and I build it, 983 01:10:47,760 --> 01:10:49,920 and then we run it by you guys, because you've had the forty 984 01:10:49,960 --> 01:10:54,079 years plus experience in the business, and you give us your pointers, your 985 01:10:54,079 --> 01:10:57,680 ideas on how we can help build the portfolio to the best of our ability 986 01:10:58,000 --> 01:11:00,159 for their risk dollers. Everything is based off the tolence on how we build 987 01:11:00,439 --> 01:11:03,760 the portfolios. And here's the best part. After we're done with all that 988 01:11:04,600 --> 01:11:10,199 and you guys open up the accounts, we manage it here with their risk 989 01:11:10,279 --> 01:11:13,640 tolerance changes. We can make this stuff. We don't shove it off to 990 01:11:13,720 --> 01:11:15,359 other people. And then you come in and say, you know, I'm 991 01:11:15,359 --> 01:11:18,520 a little nervous. I got this coming up, And they say, well, 992 01:11:18,560 --> 01:11:21,720 you either have to take all your money or not. We can mitigate 993 01:11:21,720 --> 01:11:25,960 your risk for you. We're responsible for what is invested in your portfolio. 994 01:11:26,000 --> 01:11:28,239 We're not gonna have to call somebody. If you call us and ask why 995 01:11:28,279 --> 01:11:30,199 you have this stock, why have this et FF? Why is this? 996 01:11:30,279 --> 01:11:32,159 That We're not gonna have to call somebody else and be like, why is 997 01:11:32,199 --> 01:11:34,760 that? We can answer you right then and there and give you the peace 998 01:11:34,760 --> 01:11:38,520 of mind that we are looking at your account every day. Also, ask 999 01:11:38,560 --> 01:11:43,159 your advisor how do you mitigate risk other than just bonds, because I guarantee 1000 01:11:43,159 --> 01:11:45,560 you most money managers won't have an answer for that because they're not managing it. 1001 01:11:46,520 --> 01:11:49,560 I mean, an institutional money manager knows how to mitigate risk. The 1002 01:11:50,239 --> 01:11:54,319 adviser usually pushes off that way, they have someone else to blo. The 1003 01:11:54,359 --> 01:11:57,840 advisor will just say, put more bonds and hold on, just hold on. 1004 01:11:57,920 --> 01:12:00,720 It's always going to be fine, which didn't work twenty ten. And 1005 01:12:00,720 --> 01:12:03,880 it is fine if you're an institution, but if you're if someone that's retiring, 1006 01:12:03,880 --> 01:12:06,880 we're getting close to retiring, or we tired, it's not good to 1007 01:12:06,880 --> 01:12:11,800 watch it come all the way down right, We'll be right back. We 1008 01:12:11,840 --> 01:12:15,159 do appreciate you're listening and be part of our show. Thank you. It's 1009 01:12:15,199 --> 01:12:27,279 all we come back to the Money Mounting Show. We do appreciate you're listening. 1010 01:12:27,720 --> 01:12:31,279 We do have our estate planner here today. He's got some interesting stuff 1011 01:12:31,319 --> 01:12:35,000 to tell us. He's emailed us all and said, hey, this is 1012 01:12:35,039 --> 01:12:38,439 what I want to talk about today, and he said, okay, we'll 1013 01:12:38,439 --> 01:12:43,119 talk about it. So I'm mister Edward Wafforn known as Jonathan. How are 1014 01:12:43,159 --> 01:12:45,000 you good? How are you guys? Good? Yr? It looks good 1015 01:12:45,039 --> 01:12:47,680 today. Let's slip back and all. Yeah, I gotta get a little 1016 01:12:47,720 --> 01:12:51,159 great though. Yeah, it comes in from time to time, especially if 1017 01:12:51,159 --> 01:12:59,039 I let it grow out. So so we're talking about these i RS agents 1018 01:12:59,159 --> 01:13:04,640 and they were doing he's unappointed. Unappointed? Well, how would you unknown? 1019 01:13:05,960 --> 01:13:11,960 I could unannounced visits to people's homes. But apparently that's being stopped. 1020 01:13:12,439 --> 01:13:15,560 Yeah, it's being stopped because one, uh, it's dangerous for the agents. 1021 01:13:15,800 --> 01:13:19,399 And two, you know, like anything else in the in the past, 1022 01:13:19,479 --> 01:13:23,720 they should give you notice before they contact you. So they usually cold 1023 01:13:23,800 --> 01:13:26,600 give you notice through the mail. You'll never get a phone call from an 1024 01:13:26,640 --> 01:13:30,479 IRS agent right out of the blue, uh, and they probably won't be 1025 01:13:30,479 --> 01:13:32,399 showing up at your house right out of the blue. Either they'll give you 1026 01:13:32,479 --> 01:13:35,479 notice and let you know they're gonna stop by. Will ever be an email? 1027 01:13:36,520 --> 01:13:41,039 Will there ever be an email? I don't know that. I would 1028 01:13:41,079 --> 01:13:46,039 doubt question went something they said they will emailed out a little bit sometimes, 1029 01:13:46,680 --> 01:13:49,960 um now that they're not gonna be just knocking on your door. But you 1030 01:13:50,000 --> 01:13:53,039 know, it's funny they make it sound like, oh, we don't want 1031 01:13:53,039 --> 01:13:56,439 to do that to the people. No, not get it. They're unarmed. 1032 01:13:56,760 --> 01:13:59,159 They don't want to go to the people that own money. You get 1033 01:13:59,199 --> 01:14:02,359 shot. No, I come it up. You know. It's like the 1034 01:14:02,399 --> 01:14:05,720 guy that h has to collect money from people that all on their mortgage or 1035 01:14:06,079 --> 01:14:10,199 or their cause or their boats. I did that for a year. Yeah, 1036 01:14:10,479 --> 01:14:12,920 it was the collection nature. Did you do that well? I started 1037 01:14:12,960 --> 01:14:15,920 my career with Fort Motor Credit. That's where I started because that's what they 1038 01:14:15,039 --> 01:14:19,880 put starting. People do this at all of them because nobody else wants to. 1039 01:14:20,880 --> 01:14:25,000 It was horrible and it was always the same people every month that were 1040 01:14:25,039 --> 01:14:28,079 laid on their mortgage, always the same ones, and you just went knocked 1041 01:14:28,119 --> 01:14:30,520 on their door. No, no, we don't go into the houses. 1042 01:14:30,560 --> 01:14:32,399 It was just calling them and sending them letters. And you know, the 1043 01:14:32,880 --> 01:14:39,039 good news about mortgage debt, which is what I was collecting, is they 1044 01:14:39,279 --> 01:14:42,920 just take the house. They've got pretty good leverage. Yeah. Yeah, 1045 01:14:42,960 --> 01:14:45,720 so you a house just couldn't just keep moving the cause the people I was 1046 01:14:45,760 --> 01:14:48,760 calling late on those man, those cause moved around. If you haven't found 1047 01:14:48,800 --> 01:14:51,680 one of those or collecting cars, yeah yeah, those REPO guys had to 1048 01:14:51,720 --> 01:14:55,000 go out there and they would sit on it. Then they would call it. 1049 01:14:55,079 --> 01:14:57,159 Hey, I got the call, Doway, I take it. Now 1050 01:14:57,399 --> 01:15:00,640 leave them alone. We'll give them, giveim a few more days, then 1051 01:15:00,680 --> 01:15:04,880 boom, you'll never find the car again. We've had a plethora of interactions 1052 01:15:04,960 --> 01:15:11,920 with Jonathan and our clients and wills and trust and there was some real estate 1053 01:15:12,000 --> 01:15:15,319 question and and you're working on another cat. I don't even know what that's 1054 01:15:15,319 --> 01:15:18,960 all about now as but you've got a bunch of different things going on, 1055 01:15:19,039 --> 01:15:26,560 and we would invite you if you have needs of a financial planning attorney who 1056 01:15:26,600 --> 01:15:31,279 has also a tax skills which is rare, that combination very very rare. 1057 01:15:31,720 --> 01:15:36,119 Um if you've got something sophisticated that you're struggling with, give us a call 1058 01:15:38,039 --> 01:15:41,239 would be happy to put you in touch with Jonathan and he's right here in 1059 01:15:41,239 --> 01:15:45,760 our office. He's self employed, has his own law firm, but he 1060 01:15:45,880 --> 01:15:50,600 is physically in the Greenberg Financial Building. Correct, Yeah, and thank you. 1061 01:15:50,640 --> 01:15:55,800 It's it's a great place. You know. I love every Sunday chat 1062 01:15:55,880 --> 01:16:00,760 with you guys, and it's like a family over here. And I think 1063 01:16:00,800 --> 01:16:03,079 that our you know, I could bounce off ideas with you guys and vice 1064 01:16:03,159 --> 01:16:08,359 versa. You know, with that that gentleman who called their day excuse me, 1065 01:16:08,920 --> 01:16:14,840 um, when we were kicking income to one of the beneficiaries and we 1066 01:16:14,880 --> 01:16:21,039 had to basically what we were doing was or what they were doing was changing 1067 01:16:21,079 --> 01:16:29,520 the terms of an irrevocable trust so the income was taxable to the beneficiary, 1068 01:16:29,520 --> 01:16:32,880 which is usually in your best bet, uh in terms of tax wise, 1069 01:16:32,920 --> 01:16:38,079 because you want the beneficiary or an individual to be taxed and not the trust 1070 01:16:38,239 --> 01:16:43,760 because as we as we all know, that trust has compressed tax rates where 1071 01:16:43,840 --> 01:16:45,640 if you're a married couple, you could be in a couple one hundred thousand 1072 01:16:45,680 --> 01:16:50,279 dollars and eventually hit that thirty seven percent, but with the trust, the 1073 01:16:50,359 --> 01:16:54,520 tax rates are compressed. So if you have over fifteen thousand and sixteen thousand 1074 01:16:54,560 --> 01:16:58,720 dollars of income you'll be taxed at thirty seven percent. And we were working 1075 01:16:58,760 --> 01:17:03,319 through the paperwork to get the account opened. And we're not used to seeing 1076 01:17:03,399 --> 01:17:08,920 a revocable trust, or excuse me, an irrevocable trust, which is what 1077 01:17:08,960 --> 01:17:12,279 this was. With a social Security number. Those two things just don't go 1078 01:17:12,279 --> 01:17:15,840 together. When you see an irrevocable trust, you expect her to be an 1079 01:17:15,840 --> 01:17:19,479 EI N number. And we were wrestling with how this is supposed to work 1080 01:17:19,520 --> 01:17:23,439 in and Jonathan, your office is next to mine. I went, Jonathan, 1081 01:17:24,439 --> 01:17:27,279 yeah, busy, yeah, And it just fell under the Code six 1082 01:17:27,399 --> 01:17:30,680 seventy eight rules for grand tour trust and grand toward trusts if you have an 1083 01:17:30,720 --> 01:17:33,159 interest in and you know, there's a bunch of different rules, but in 1084 01:17:33,199 --> 01:17:38,439 this case, if you have interest in the income, it becomes a grand 1085 01:17:38,439 --> 01:17:44,920 toward trust and income is taxable to the beneficiary. At that point, I 1086 01:17:45,000 --> 01:17:47,279 was gonna go real quick. We're talking about business accounts a couple of weeks 1087 01:17:47,279 --> 01:17:50,560 ago, about why it's important to switch over to an escort if you're just 1088 01:17:50,600 --> 01:17:56,279 finally a schedule c right, And we didn't really talk about that on that 1089 01:17:56,319 --> 01:17:58,600 show, but I want to spend a little bit time. The reason that's 1090 01:17:58,600 --> 01:18:01,840 so valuable is then you can start contributing to a four o one K exactly 1091 01:18:02,039 --> 01:18:06,319 right, and take advantage of further tax efficiencies that are available to you. 1092 01:18:06,640 --> 01:18:10,920 Yeah. So Uh. In fact, I was talking to Dave a couple 1093 01:18:11,039 --> 01:18:15,039 days ago and I was saying, Hey, who do you guys do with? 1094 01:18:15,439 --> 01:18:17,359 Who do you guys deal with for payroll? Because I'm filing my twenty 1095 01:18:17,399 --> 01:18:20,920 five fifty three. Twenty five fifty three is a form that you elect the 1096 01:18:21,119 --> 01:18:28,399 S Corps status and Uh, basically you become a shareholder and you have to 1097 01:18:28,439 --> 01:18:31,520 take payroll. And when you take payroll, you're you're basically still tax as 1098 01:18:31,560 --> 01:18:35,560 you are. Uh, and your ESK or your schedule C, you know, 1099 01:18:35,680 --> 01:18:42,000 everything flows to you. But you're able to take certain benefits of being 1100 01:18:42,000 --> 01:18:45,880 an employee, like contributing to a four oh one K and the maximum contributions 1101 01:18:45,920 --> 01:18:54,279 what nineteen five ninety with the employer match, you're twenty two five and then 1102 01:18:54,319 --> 01:18:58,079 you get seventy five hundred. Yeah, over fifty right, But I heard 1103 01:18:58,119 --> 01:19:00,760 that's going away. You said, well, it's it's for people that make 1104 01:19:00,800 --> 01:19:05,000 over one hundred and forty two thousand starting in twenty twenty five, I believe 1105 01:19:05,079 --> 01:19:09,640 it's going to start. It's gonna have to be after tax contribution. It 1106 01:19:09,640 --> 01:19:13,359 can't be a pre tax contribution on the catchup part. Oh, that's right. 1107 01:19:13,640 --> 01:19:16,960 And Jonathan, you're just now making a change personally personally that I'm doing 1108 01:19:16,960 --> 01:19:21,600 with my own firm, and I wouldn't recommend it if um, you know, 1109 01:19:21,680 --> 01:19:27,439 I wouldn't do it. And it's absolutely an amazing tax saving opportunity. 1110 01:19:27,680 --> 01:19:30,359 If you don't call me, you know, call your local tax preparer. 1111 01:19:30,439 --> 01:19:31,439 They'll tell you the same thing. I mean, yeah, that one case 1112 01:19:31,479 --> 01:19:36,439 where this lady for ten years could have saved herself probably thirty thousand dollars in 1113 01:19:36,479 --> 01:19:40,760 taxes if she was just switching to an escort from the schedule. See, 1114 01:19:40,880 --> 01:19:43,520 she probably could have saved it in one year, right, you know? 1115 01:19:43,600 --> 01:19:46,399 And depending on how much you make, what is it if I'm if I'm 1116 01:19:46,399 --> 01:19:50,560 a sole proprietor, I have a little company to maybe I'm a mechanic, 1117 01:19:50,600 --> 01:19:55,439 maybe I'm a plumber. What what makes me want to do that? What 1118 01:19:55,600 --> 01:19:59,039 is there something out to watch for if my income is a certain level or 1119 01:19:59,119 --> 01:20:01,319 correct? What what is what's the kicker? What's the catalyst? There's usually 1120 01:20:01,319 --> 01:20:05,560 a sweet spot. I would say, if you're netting over forty thousand dollars, 1121 01:20:05,560 --> 01:20:09,279 you should start considering an escorp, but you have to be an active 1122 01:20:09,279 --> 01:20:13,159 member or an act. It should be an active business. So you know, 1123 01:20:13,199 --> 01:20:15,800 if you're investing into rental real estate and you you know, and you 1124 01:20:15,800 --> 01:20:19,439 guys are financial planners on the side or for your main business, of course 1125 01:20:19,439 --> 01:20:23,279 you're not going to do the escorp. But if you are an actual plumber 1126 01:20:23,319 --> 01:20:29,840 or an actual mechanic or an attorney, you would file your SCORP and you 1127 01:20:29,840 --> 01:20:32,239 would probably look to see what would make sense. Because yes, there are 1128 01:20:32,279 --> 01:20:35,399 some more administration fees, there's payroll that you're going to have to pay for, 1129 01:20:35,640 --> 01:20:40,960 there's another tax return you're going to have to file. But as long 1130 01:20:41,039 --> 01:20:44,840 as that tax savings is more than those administration fees, is a benefit, 1131 01:20:45,600 --> 01:20:49,479 and the tax savings would be derived from what the tax savings. With an 1132 01:20:49,600 --> 01:20:53,680 escorp, you're no longer an owner, you're a shareholder. So there's no 1133 01:20:53,720 --> 01:20:59,319 self employment tax. So income that comes into the business is not taxable unless 1134 01:20:59,359 --> 01:21:01,840 you choose to take it. Is that am I understand that correctly? There 1135 01:21:01,880 --> 01:21:06,600 won't be any self employment tax on it? So you're fifteen point two self 1136 01:21:06,600 --> 01:21:13,439 employment tax. If you do an SCORP, you there's no self employment tax 1137 01:21:13,479 --> 01:21:16,239 at fifteen point two percent, but you will have to take payroll and you 1138 01:21:16,239 --> 01:21:20,119 will have to do some withholdings. You had a fifteen point two percent raise, 1139 01:21:20,640 --> 01:21:24,199 but some of that raise to pay for these other things exactly. But 1140 01:21:24,239 --> 01:21:29,039 you only have to pay yourself reasonable compensation. So what would you there's different 1141 01:21:29,039 --> 01:21:31,000 ways to look at it, but what would you pay somebody to do your 1142 01:21:31,079 --> 01:21:35,199 job? And so if you made two hundred thousand dollars and you feel reasonable 1143 01:21:35,239 --> 01:21:40,399 compensation is one hundred thousand dollars, you may have saved self employment tax on 1144 01:21:40,399 --> 01:21:44,960 one hundred thousand dollars. But just in general terms, and again very general 1145 01:21:45,079 --> 01:21:49,520 terms, do you think if someone has taxable income of forty thousand dollars or 1146 01:21:49,640 --> 01:21:54,479 more? I think so it's something that and again it's not casting concrete. 1147 01:21:54,520 --> 01:21:59,039 That's just a guideline. So if you're out there in your plumber or whatever 1148 01:21:59,319 --> 01:22:00,840 and you're making one hundred and a half, you probably ought to be thinking 1149 01:22:00,880 --> 01:22:04,000 about it. Absolutely, And that's not even counting the four oh one k 1150 01:22:04,079 --> 01:22:08,920 and how that saves on top right, producing your taxable income. There you 1151 01:22:08,960 --> 01:22:12,359 go. So if you contribute to a four oh one K at nineteen five, 1152 01:22:12,439 --> 01:22:16,640 that twenty two five is tax deductible and it's a it's deferred income. 1153 01:22:17,600 --> 01:22:21,359 Yeah. So there's a lot of opportunities for business owners and that's why the 1154 01:22:21,399 --> 01:22:26,199 financial plan it can be done for individuals and business owners. We've done multiple 1155 01:22:26,239 --> 01:22:31,359 financial plans where we have almost like a two fauceted faceted financial plan where one 1156 01:22:31,359 --> 01:22:35,119 of it's personal and then we put in maybe they have three two, three 1157 01:22:35,199 --> 01:22:39,600 four businesses. We can put that in as an entity in the plan showing 1158 01:22:39,640 --> 01:22:43,119 when we might sell that asset, what type of taxes we expect is to 1159 01:22:43,239 --> 01:22:46,039 spend or have to pay on when we get the proceeds from the businesses, 1160 01:22:46,199 --> 01:22:49,680 what type of revenue is that business currently making. All that we can be 1161 01:22:49,720 --> 01:22:53,960 incorporated into the financial plan. So you don't have a full picture just for 1162 01:22:54,000 --> 01:22:58,079 yourself, but for your businesses and your family. Absolutely not. For years, 1163 01:22:58,159 --> 01:23:01,279 Dean's been trying to put together h financial mall, if you will, 1164 01:23:01,560 --> 01:23:06,479 where you walk in and there anything you need, whether it be a mortgage, 1165 01:23:06,720 --> 01:23:12,920 whether it be a lawyer, whether it be life insurance, health insurance, 1166 01:23:12,960 --> 01:23:16,920 casualty, insurance, money management, accounting, whatever you need, you'd 1167 01:23:16,920 --> 01:23:21,319 be able to get that at the financial mall shop. And I think you've 1168 01:23:21,840 --> 01:23:27,800 you've succeeded in accomplishing that, mister Greenberg. It's getting there. Yeah, 1169 01:23:27,880 --> 01:23:30,039 time, Well, that's always got to work it out. We've had people 1170 01:23:30,079 --> 01:23:33,920 in out. You know, you gotta get through it and eventually it sticks, 1171 01:23:34,760 --> 01:23:38,079 you know. I think the biggest thing is if you notice, the 1172 01:23:38,119 --> 01:23:42,119 people that end up sticking are the people that know how to work no work 1173 01:23:42,159 --> 01:23:45,000 out as a team. It's not about them, it's not about I. 1174 01:23:45,159 --> 01:23:49,239 It's about week. It's about helping each other growing together. Okay, And 1175 01:23:49,680 --> 01:23:54,279 in my business I've been forty years, it's hard to find a lot of 1176 01:23:54,279 --> 01:23:58,319 people that are the stand team. We even had a situation this past week 1177 01:23:58,359 --> 01:24:01,720 where there was an elderly couple that had a piece of real estate that utility 1178 01:24:01,760 --> 01:24:04,640 company was trying to buy from them, and of course that would have been 1179 01:24:04,680 --> 01:24:10,359 a huge capital gain, and we were able to advise them how to counter 1180 01:24:10,439 --> 01:24:15,039 that and they ended up with sixty thousand dollars more money than what they would 1181 01:24:15,079 --> 01:24:17,119 have had had they not spoken to us. A good So there is a 1182 01:24:17,159 --> 01:24:21,960 plethora of things we can do to help. Okay, Jonathan, as always, 1183 01:24:21,960 --> 01:24:26,319 we'll see you next week. We appreciate your showing up. You need 1184 01:24:26,359 --> 01:24:30,840 some mistake planning. Will's trust do it and he has the same same schedule 1185 01:24:30,880 --> 01:24:34,479 we do. When it's costing value, price has got to be lower. 1186 01:24:35,159 --> 01:24:39,479 Got to give you your value, and I promise you will. If not, 1187 01:24:39,600 --> 01:24:42,720 you come say something to me first consol, first consult. We'll be 1188 01:24:42,720 --> 01:24:59,319 back will your Money Matters in just a minute. All right, everybody, 1189 01:24:59,319 --> 01:25:01,439 we're back. It's last segment. We appreciate you're listening. You know, 1190 01:25:02,399 --> 01:25:06,520 if you need to go back and listen at any of our shows, just 1191 01:25:06,600 --> 01:25:12,199 go to Money Matters with Dean Greenberg. It's on all the podcasts. Go 1192 01:25:12,279 --> 01:25:15,359 to our website. You can get it on there or just get an iHeart 1193 01:25:15,439 --> 01:25:21,079 radio and you'll be able to listen live. Yeah, take advantage of our 1194 01:25:21,119 --> 01:25:25,079 YouTube page. You can find that on our website as well. All of 1195 01:25:25,079 --> 01:25:29,119 our podcasts easily accessible on our pod page. So, and if you go 1196 01:25:29,119 --> 01:25:32,279 to a website, YouTube is up on the right hand side. Top. 1197 01:25:33,119 --> 01:25:36,079 Okay, and it's that little TV thing on there. Well Mike, isn't 1198 01:25:36,079 --> 01:25:40,720 it. But what was a little MiCT the top? Last on the left, 1199 01:25:40,760 --> 01:25:43,399 top left, and that's for any of the any of the TV. 1200 01:25:43,760 --> 01:25:48,119 The TV's on the other one. The TV is what's what's on YouTube? 1201 01:25:48,800 --> 01:25:54,800 That shows? All weekly market updates are shows? Um, yeah, like 1202 01:25:54,840 --> 01:25:57,479 I said, the weekly market updates, we post that once a week on 1203 01:25:57,479 --> 01:26:00,840 Facebook on Friday's just wrapping up the week. More shorter videos as well. 1204 01:26:00,960 --> 01:26:06,159 There probably gonna be looking and try to do some new TV shows in September. 1205 01:26:06,199 --> 01:26:12,760 Areas. So got more things education stuff building for sure, Yeah, 1206 01:26:12,800 --> 01:26:15,279 definitely education on the YouTube video. We want to build a whole education platform. 1207 01:26:15,279 --> 01:26:18,159 So it's not timely. It's not like this radio show where it's more 1208 01:26:18,199 --> 01:26:24,399 current events. It's more just about financial education. So we're only I mean, 1209 01:26:24,399 --> 01:26:29,399 we're about to We're at forty six hundred now, right, are we 1210 01:26:29,439 --> 01:26:32,439 going to hit a new all time high on the SMP. Who knows, 1211 01:26:33,600 --> 01:26:39,560 well, well, nobody knows that whole thing. You make a decision and 1212 01:26:39,640 --> 01:26:42,720 you say, okay, I don't think there's enough liquidity here. I don't 1213 01:26:42,720 --> 01:26:45,520 think there's enough money here, And all of a sudden, interest rates keep 1214 01:26:45,600 --> 01:26:47,439 going high, which is what made the market go down before, they keep 1215 01:26:47,520 --> 01:26:51,760 going higher now. People just taking cash because they have so much on the 1216 01:26:51,800 --> 01:26:56,560 sidelines and and putting it into the market because they don't want to miss out. 1217 01:26:56,600 --> 01:26:58,840 I think a lot of the hals togo be going on right now. 1218 01:26:59,239 --> 01:27:02,359 But you've seen it like on that on Thursday when the market was up five 1219 01:27:02,479 --> 01:27:08,079 hundred, almost four hundred and the SMP was up forty something closed down thirty. 1220 01:27:08,560 --> 01:27:12,079 Let me ask you, it can happen that you both you you're around 1221 01:27:12,079 --> 01:27:15,239 into two thousands. I saw a chart in January twenty twenty where now January 1222 01:27:15,279 --> 01:27:19,319 two thousand, where the we had a similar interest rate environment with the ten 1223 01:27:19,399 --> 01:27:26,760 year um where the nastack was just taking off and leaving any real return of 1224 01:27:27,119 --> 01:27:30,560 the ten year treasury in the dust. And there's a huge divergence there. 1225 01:27:30,560 --> 01:27:32,239 And then we had the dot com bubble and it all fell off the cliff. 1226 01:27:32,359 --> 01:27:35,720 And now what does this feel like? Anything like two thousand? A 1227 01:27:35,760 --> 01:27:41,680 little, not not totally. AI though, is spurring things on if you 1228 01:27:41,840 --> 01:27:45,560 notice. Okay, people and watch the scam is calling you with all these 1229 01:27:45,600 --> 01:27:53,159 companies that put AI in it all right, listen, AI still has many 1230 01:27:53,199 --> 01:27:57,399 many, many, many many many years ago, especially mostly small companies have 1231 01:27:57,520 --> 01:28:04,279 nothing. They're all pushing down okay, but Microsoft, you know, Apple, 1232 01:28:05,279 --> 01:28:10,199 Google, They all part of that meta, the all part of the 1233 01:28:10,239 --> 01:28:12,880 big time of the AIS, and they might buy out some of those other 1234 01:28:12,920 --> 01:28:15,319 companies. We don't know what direction is going, Dave, Right, okay, 1235 01:28:15,399 --> 01:28:18,399 I mean the other thing a few years ago, right, I think 1236 01:28:18,439 --> 01:28:21,520 it was eighteen and nineteen, it was all about the weed stocks. Now 1237 01:28:21,479 --> 01:28:25,439 I wanna we're gonna they're gonna approve it, They're gonna. Well, they 1238 01:28:25,439 --> 01:28:28,439 did approve it a lot, maybe not federally, but they approved it in 1239 01:28:28,479 --> 01:28:30,640 a lot of states. And the stock that was like, I don't know, 1240 01:28:31,039 --> 01:28:34,920 uh CSG well, what's her name? It can't be big growth? 1241 01:28:35,039 --> 01:28:39,920 Yeah, right, it's thirty nine cents now, yeah, I remember Consolation 1242 01:28:40,000 --> 01:28:43,800 Brands bought half the company for thirty nine dollars a year, and I finished 1243 01:28:43,800 --> 01:28:45,920 today, I finished Friday at forty seven tenths and he got the seventy dollars 1244 01:28:45,920 --> 01:28:49,239 a share at one point. Yes, the MJETF which is a bunch of 1245 01:28:49,239 --> 01:28:53,840 the weed companies, is three dollars and fifty cents right now. It was 1246 01:28:53,880 --> 01:28:59,079 like like fifty todd I would say the big differences in two thousand a good 1247 01:28:59,199 --> 01:29:04,760 twenty five to forty percent of the companies in the trading over the counter didn't 1248 01:29:04,800 --> 01:29:09,640 have anything in the way of sales product. It would just pine the sky 1249 01:29:09,720 --> 01:29:15,640 stuff. This is a lot more solid rally than two thousand, So either 1250 01:29:15,800 --> 01:29:18,039 similarities, like Dean said, it feels a little similar, feels a little 1251 01:29:18,159 --> 01:29:24,439 little parabolic, if you will, but the gigantic difference, and it really 1252 01:29:24,520 --> 01:29:28,279 is just being driven by seven stocks. It's by seven stocks, and they're 1253 01:29:28,279 --> 01:29:31,960 all real, they're all doing great, but they're they're bringing everything along. 1254 01:29:32,720 --> 01:29:34,800 Dan. I want to talk a little bit about treasuries if I can, 1255 01:29:36,319 --> 01:29:42,119 because interest rates have risen so far, so fast. Most of the treasury 1256 01:29:42,319 --> 01:29:46,159 notes that people are buying in the secondary market are older and they have lower 1257 01:29:46,199 --> 01:29:50,359 interest rates. And I want to give an example if you wanted to get 1258 01:29:50,760 --> 01:29:55,399 let's say, for right now, the return on a twelve month treasury is 1259 01:29:55,439 --> 01:29:58,079 five percent. Just for simplest, it's a little higher than that, but 1260 01:29:58,479 --> 01:30:01,680 let's say it's five percent. You might be buying a two I've actually used 1261 01:30:01,720 --> 01:30:05,319 a two year a two year note, and maybe that interest rate. The 1262 01:30:05,359 --> 01:30:10,960 actual interest rate on those bonds is only two percent. The coupon rate, 1263 01:30:11,399 --> 01:30:14,000 right, So the coupon at the interest rate. Most people don't know a 1264 01:30:14,000 --> 01:30:16,039 coupon means. So the interest rate, which is a coupon is another word 1265 01:30:16,079 --> 01:30:19,439 for interest rate. The interest rate on the bond is two percent. So 1266 01:30:19,520 --> 01:30:25,279 in order to get that five percent, you're buying that treasury at a discount, 1267 01:30:25,479 --> 01:30:27,159 all right, And people say, well, that's good. I'll be 1268 01:30:27,199 --> 01:30:30,560 able to get the two percent interest, and then at the end, I'll 1269 01:30:30,600 --> 01:30:33,359 be able to sell it and I'll have a long term capital gain, or 1270 01:30:33,399 --> 01:30:36,720 one of the maturs, I'll have a long term capital gain because I will 1271 01:30:36,720 --> 01:30:42,279 have held it for two years. Treasury interest payments are not taxable on the 1272 01:30:42,319 --> 01:30:45,560 state level, which is good, but that going from ninety four cents. 1273 01:30:45,600 --> 01:30:48,960 Again, using my example, on a two year piece of paper that has 1274 01:30:49,000 --> 01:30:53,199 a two percent interest rate, you'd need to buy it at ninety four, 1275 01:30:53,560 --> 01:30:57,680 so you get six percent appreciation four percent interest over a two year period. 1276 01:30:57,680 --> 01:31:03,880 That's five percent a year. In a weird IRS quirk, Treasury appreciation of 1277 01:31:04,000 --> 01:31:12,119 more than twenty five basis points per year is taxed as regular income, not 1278 01:31:12,279 --> 01:31:15,159 capital gains. Right, So in that particular case, if you bought it 1279 01:31:15,199 --> 01:31:16,720 in ninety four, you say, well, it's going to mature to par 1280 01:31:17,279 --> 01:31:21,439 so I'm gonna get that six percent at capital gains rates. No, you 1281 01:31:21,479 --> 01:31:28,000 won't because that's more than the twenty five basis points per year, so your 1282 01:31:28,039 --> 01:31:31,000 coupon rate has to be very very close to your yield worse. I think, 1283 01:31:31,199 --> 01:31:34,640 I think when you look at treasuries, you don't want to think in 1284 01:31:34,760 --> 01:31:39,640 terms of capital gains period. Just think of ordinary income. I just think 1285 01:31:39,640 --> 01:31:42,680 in terms of ordinary income is easier. You might maybe pick up a little 1286 01:31:42,720 --> 01:31:45,840 a few pennies capital gain here and there, but whether it be zero coupon 1287 01:31:45,920 --> 01:31:51,479 bonds or deep discounted treasury notes, think of them as taxable income. Don't 1288 01:31:51,520 --> 01:31:57,039 think of them as as capital gains. Great point. I thought it was 1289 01:31:57,119 --> 01:32:00,279 kind of interesting, and that's really is kind of a quirk for treasuries. 1290 01:32:00,600 --> 01:32:04,439 Twenty five basis points a year you get, so if you'd have bought it 1291 01:32:04,439 --> 01:32:09,960 at ninety nine and a half, right, then you have capital gains right 1292 01:32:10,079 --> 01:32:15,239 on that on that half, which brings us back to my conservative income plex 1293 01:32:15,279 --> 01:32:18,000 growth model. Yes, I thought that was a good six sig sick. 1294 01:32:18,359 --> 01:32:25,159 And the reason is it's for ultra conservative people. There you go, thank 1295 01:32:25,199 --> 01:32:30,640 you, cig. That's why I have you young guys. You actually listen, 1296 01:32:31,119 --> 01:32:34,439 but seriously, uh, because they can actually hear. So you take 1297 01:32:34,479 --> 01:32:41,800 the treasuries. You take the treasuries and you get them out a discount, 1298 01:32:42,000 --> 01:32:45,840 you get an income flow off there. They will give you exactly what you 1299 01:32:45,920 --> 01:32:49,840 did if some of you have you had one hundred thousand dollars and you paid 1300 01:32:50,439 --> 01:32:56,119 ninety two thousand form when they mature, you have one hundred thousand. You'll 1301 01:32:56,159 --> 01:33:01,159 also have your two percent on that on those hundred bonds. But here's the 1302 01:33:01,279 --> 01:33:04,199 kick of what we do. Now, we take the interest, we take 1303 01:33:04,239 --> 01:33:08,840 the difference of that eight thousand, and we take the interest and we invest 1304 01:33:08,960 --> 01:33:14,039 it in our ETF model, a growth model. So you can get a 1305 01:33:14,199 --> 01:33:15,920 kick of well, if you have a good deal like this, it's up, 1306 01:33:16,079 --> 01:33:19,720 if it's down, say the market goes down fifty percent, you will 1307 01:33:19,800 --> 01:33:26,520 still have more money from the interests that you got and the and the difference 1308 01:33:26,640 --> 01:33:30,399 of the of the ninety two one hundred you got, so you'll always have 1309 01:33:30,560 --> 01:33:33,920 more than your principle. That's like to the two year bond example I gave. 1310 01:33:34,000 --> 01:33:38,359 If if that were a zero coupon, you probably pay for a two 1311 01:33:38,439 --> 01:33:42,359 year ninety cents on the dollar, right, So you got one hundred thousand 1312 01:33:42,359 --> 01:33:45,239 dollars. If you put ninety thousand dollars into the zero coupon two years zero 1313 01:33:45,319 --> 01:33:50,239 coupon bond, the other ten you can roll a dice as aggressively as you 1314 01:33:50,359 --> 01:33:54,920 want the worst thing to happen. Did you get your money back? Period? 1315 01:33:55,000 --> 01:34:00,119 Guaranteed SIG model CIG conservative income plus growth. If an interests you call 1316 01:34:00,199 --> 01:34:02,880 us, we'll go a little bit with you. Yeah. Absolutely, And 1317 01:34:02,960 --> 01:34:08,199 obviously we've already talked about the mega rates increasing five point three percent. Another 1318 01:34:08,279 --> 01:34:13,359 great place always been talking about the treasure ladders. Van guard money market continues 1319 01:34:13,399 --> 01:34:16,520 to stay high, elevated at five percent ladders. I mean, there's so 1320 01:34:16,720 --> 01:34:19,640 much we can do now that we couldn't do two years ago, three years 1321 01:34:19,640 --> 01:34:24,359 ago. Higher interest rates have really opened up the door. And also keep 1322 01:34:24,399 --> 01:34:28,399 talking this for money that's just sitting in your savings account. But also, 1323 01:34:28,520 --> 01:34:30,880 I mean, if you're an investor who isn't that risky as an investor and 1324 01:34:30,920 --> 01:34:33,920 we've had this big run up, it might make sense to take some chips 1325 01:34:33,920 --> 01:34:38,239 off the table, take advantage of the interest where you're guaranteed, and then 1326 01:34:38,319 --> 01:34:41,600 my markets fall down, then take advantage of ten percent, take it with 1327 01:34:41,640 --> 01:34:43,960 winnings off the table. Put it in the miga locket in a five point 1328 01:34:44,000 --> 01:34:46,640 because if in six months the markets do drop twenty five percent, you're going 1329 01:34:46,680 --> 01:34:49,319 to be kicking yourself knowing that you could have taken that money locked in. 1330 01:34:49,359 --> 01:34:53,720 Then you know that myga at five point three, you're looking at compounding at 1331 01:34:53,800 --> 01:34:57,399 once a year. It's almost thirty percent, almost thirty percent. Right, 1332 01:34:57,600 --> 01:35:01,640 you put one hundred grand, no, one hundred grand in air and at 1333 01:35:01,680 --> 01:35:06,439 the end of five years you're gonna have one hundred and thirty grand period or 1334 01:35:06,520 --> 01:35:11,520 nearly one with compound period there. Yeah, I mean that. Gosh, 1335 01:35:11,600 --> 01:35:14,520 how do you beat that? Yeah, there's no trend. Awefully long time 1336 01:35:14,600 --> 01:35:16,960 since we've been able to say something like that. Right, you can make 1337 01:35:17,039 --> 01:35:23,680 almost thirty percent over a five year period, guaranteed period. Right. It's 1338 01:35:23,720 --> 01:35:27,960 funny. You can say guaranteed buddy insurance company, right, but we can 1339 01:35:28,039 --> 01:35:30,720 never say it, even though that's because they they loll be like crazy. 1340 01:35:30,800 --> 01:35:33,880 You know, those insurance companies. They got a lot of violence in Washington. 1341 01:35:34,119 --> 01:35:36,600 Buy is zokoon pump on? Do you what's government's going to give you 1342 01:35:36,680 --> 01:35:41,840 the money? Right? But we can't say it's guaranteed it's not weird. 1343 01:35:41,960 --> 01:35:44,960 Yeah, there's word and then I don't know. The insurance companies, the 1344 01:35:45,039 --> 01:35:48,920 way they sell it's incredible. They not to mention. They sell annuities on 1345 01:35:49,039 --> 01:35:56,079 fear. Might be why they're also large, also large. We were Frantica 1346 01:35:56,159 --> 01:35:59,359 one in Des Moines, Iowa that has two hundred and fifty billion in assets, 1347 01:35:59,600 --> 01:36:02,039 right, are you kidding me? It's a little insurance company in Des 1348 01:36:02,079 --> 01:36:05,680 Moines, Iowa. Two hundred and fifty billion dollars. Believe it or not. 1349 01:36:05,760 --> 01:36:08,760 We'll coming to the end of the show again. It goes quick, 1350 01:36:10,079 --> 01:36:14,880 all right, So give us a call. If you want a complimentary plan 1351 01:36:15,119 --> 01:36:16,840 done for you or anyone, you'll just call us, and it is. 1352 01:36:16,920 --> 01:36:18,960 We give it to you. You don't have to do business with us to 1353 01:36:19,039 --> 01:36:23,000 get it. We do it. We'll be back next week. Will your 1354 01:36:23,039 --> 01:36:28,199 money matters? We want everyone to be happy and to be happy. We 1355 01:36:28,319 --> 01:36:31,439 want to be healthy, and if we're happy and healthy, we all want 1356 01:36:31,479 --> 01:36:35,520 to strive to be prof say it's all