US Debt Gets Downgraded - How Did the Markets React?

1 00:00:03,359 --> 00:00:08,240 Good morning everybody. It's Sunday morning, eight o'clock right here on seven ninety 2 00:00:08,320 --> 00:00:12,000 K and st. We are here to bring you the Money Mattie Show, 3 00:00:12,679 --> 00:00:15,720 and it is going to be a good one today. We have so many 4 00:00:15,759 --> 00:00:20,039 things to talk about, and we told you watch out for this market. 5 00:00:21,079 --> 00:00:24,120 You know, you come into August, it's kind of weird. August, 6 00:00:24,120 --> 00:00:28,600 September, October's on the whole. The odds are that the markets will not 7 00:00:28,640 --> 00:00:33,719 do well. We had a two and a half point excuse me, two 8 00:00:33,759 --> 00:00:37,719 point three percent and moved down in the SMP, two point eight percent in 9 00:00:37,799 --> 00:00:42,359 NAZAC, one percent in the Dow. So for the month pretty much the 10 00:00:42,399 --> 00:00:46,079 same. We only had one extra day, which was last week, which 11 00:00:46,119 --> 00:00:50,359 is still putting us at sixteen percent SMP, five percent now thirty two percent 12 00:00:50,439 --> 00:00:55,280 NAZDAC. We're gonna talk about mitigating your risk because that's important. We keep 13 00:00:55,320 --> 00:00:58,359 talking about it. I've been talking about it, we will continue to talk 14 00:00:58,359 --> 00:01:00,679 about it because if you're going to invest and you're gonna manage money, you've 15 00:01:00,679 --> 00:01:04,359 got to understand the risks. You're gonna have to understand how to mitigate them 16 00:01:04,799 --> 00:01:10,159 so you can help yourself through the portfolios or have somebody do it for you. 17 00:01:10,519 --> 00:01:12,239 If you keep going to someone, they just says, just hang out, 18 00:01:12,359 --> 00:01:15,640 just hang out, just hang out. Well, you and I both 19 00:01:15,680 --> 00:01:19,439 know it's not always the same. Things don't just go up and you look 20 00:01:19,480 --> 00:01:23,159 around. There's a lot of problems in our economy. I'm happy the market 21 00:01:23,159 --> 00:01:26,680 went up. I'm not happy that I kept thinking it wouldn't go that much 22 00:01:26,760 --> 00:01:33,359 higher. But you know what, still made some money and I'm still protected. 23 00:01:33,920 --> 00:01:37,040 And that's the position I want to be in. All right. So 24 00:01:37,239 --> 00:01:38,599 this is the money amount of show, and it's brought to you by Greenberg 25 00:01:38,640 --> 00:01:45,200 Financial Group, which is both the registered investment advisory and a broker dealer registered 26 00:01:45,239 --> 00:01:51,879 with the SEC. Members of CIPIC and members of Nastack Finnway. I should 27 00:01:51,920 --> 00:01:56,840 say so. On the show, we talk about different products and different strategies 28 00:01:56,840 --> 00:02:00,120 and different ideas, and we all have our own opinion. Everything has some 29 00:02:00,159 --> 00:02:07,480 type of risk. I can't express enough that you need to understand those risks 30 00:02:07,480 --> 00:02:10,360 prior to investing. Even if you're buying an annuity, you need to know 31 00:02:10,560 --> 00:02:14,759 what the risks are. If you're buying a government bond, you need to 32 00:02:14,800 --> 00:02:16,639 know the risk. And if you're buying stock. You have to know the 33 00:02:16,800 --> 00:02:24,479 risk to overallocating, under allocating, understand what you're doing, and it makes 34 00:02:24,520 --> 00:02:34,360 this process of the up and downs much easier. So on Friday, the 35 00:02:34,479 --> 00:02:38,719 market rallied nice in the morning, I mean nice. SMP was up like 36 00:02:38,840 --> 00:02:47,479 thirty five points, only two turnaround and fall twenty five points. That's a 37 00:02:47,479 --> 00:02:53,080 big turnaround. That's about a five six hundred turnaround on the Dow and SMP 38 00:02:53,319 --> 00:02:59,560 and everything else that we went through. Okay, the market is weak underpinnings 39 00:02:59,680 --> 00:03:06,400 right now. The markets rallied on Friday because Amazon came out with tremendous earnings 40 00:03:06,479 --> 00:03:13,159 and went higher. But Apple did income out the bad earnings, but they 41 00:03:13,199 --> 00:03:16,080 weren't what the markets expected and they got knocked down, and eventually Apple brought 42 00:03:16,120 --> 00:03:23,159 the rest of the market down with that's selling that is happening. It was 43 00:03:23,199 --> 00:03:30,360 a Friday reversal. We are in a critical situation because there's not a lot 44 00:03:30,360 --> 00:03:35,759 of support in here on a technical basis, and each support level that was 45 00:03:35,759 --> 00:03:38,360 a resistance level that was actually good support. We just broke it the other 46 00:03:38,439 --> 00:03:44,039 day and now there's really none of that until maybe about forty three fifty on 47 00:03:44,080 --> 00:03:49,240 the SMP and we close that I don't know, forty forty four and change. 48 00:03:50,439 --> 00:03:53,000 I mean it was forty four seventy eight or something like that. So 49 00:03:54,000 --> 00:03:59,319 that gives us another one three percent down maybe four percent, which would put 50 00:03:59,400 --> 00:04:02,840 us at the five percent seven percent level from whatever highs you want to look 51 00:04:02,879 --> 00:04:11,120 at recently, you think that can't happen, think about last year. Okay, 52 00:04:11,159 --> 00:04:13,879 after we fell hard, we got back up to forty three hundred, 53 00:04:13,879 --> 00:04:15,240 and next thing, you know, body the end of the year, we 54 00:04:15,199 --> 00:04:20,079 were at about thirty five thirty six hundred on the SMP five hundred. There's 55 00:04:20,120 --> 00:04:25,040 a lot of things out there that make you negative, but the one thing, 56 00:04:25,519 --> 00:04:28,600 and I can handle most of the negatives, but the one thing that 57 00:04:28,639 --> 00:04:32,240 I cannot handle is the valuations. And right now, the valuations are in 58 00:04:32,240 --> 00:04:38,000 the mid twenties. Earnings, you know, the valuation of price and earnings. 59 00:04:38,120 --> 00:04:44,439 Okay, in twenties, usually it's about sixteen seventeen eighteen percent. You 60 00:04:44,439 --> 00:04:50,120 can handle it, but historically it's fourteen fifteen sixteen percent, which means either 61 00:04:50,199 --> 00:04:55,399 earnings are gonna have to get robust to come up, or stocks have to 62 00:04:55,480 --> 00:04:59,480 drop. And I'm gonna go on the second one. Stocks are gonna have 63 00:04:59,560 --> 00:05:04,160 to drop to get us back into a scenario with evaluations a lucrative to go 64 00:05:04,240 --> 00:05:10,000 in and the risk is lower when evaluations are high. That's what starts the 65 00:05:10,120 --> 00:05:14,680 problems that you have of having more risk than you do reward. And yes, 66 00:05:14,720 --> 00:05:16,639 the markets can still go up, and yes, a lot of those 67 00:05:16,639 --> 00:05:25,720 companies that have gone is going up. All those magnifics in seven and now 68 00:05:25,759 --> 00:05:28,839 they're get knocked down a little bit. Microsoft got knocked down, Apple got 69 00:05:28,879 --> 00:05:31,759 knocked out, not in anywhere near where they were at the beginning of the 70 00:05:31,839 --> 00:05:36,240 year, but they're pulling off the highs. NA Video is pulling off the 71 00:05:36,319 --> 00:05:40,920 highs. At some time in the next three months, those stacks will get 72 00:05:40,959 --> 00:05:43,920 down to a point that people want to buy them again and they will be 73 00:05:43,959 --> 00:05:49,079 the ones that are traded and they will rally back up. So if you 74 00:05:49,160 --> 00:05:53,639 took some money off the table and you have that money in cash and money 75 00:05:53,639 --> 00:05:56,959 markets are paying dice right now, you can get over five percent and some 76 00:05:57,000 --> 00:06:00,399 of those money markets out there, then when I'm saying to you is be 77 00:06:00,519 --> 00:06:08,240 patient, be patient, mitigate some risk. We have inverse funds on we 78 00:06:08,360 --> 00:06:13,959 have a big position in cash. Be patient. There's a lot out there. 79 00:06:14,279 --> 00:06:20,560 This whole political scene is incredible. Right now, You've got indictments, 80 00:06:20,240 --> 00:06:24,639 a past presents, a third indictment. You don't have to why you just 81 00:06:24,720 --> 00:06:27,560 brush it off your shoulder because you look at it and you go, are 82 00:06:27,560 --> 00:06:30,439 you kidding me? Do you think that we are that stupid? The American 83 00:06:30,480 --> 00:06:36,639 people? That's stupid that a day after every time Biden has something go wrong 84 00:06:36,680 --> 00:06:43,279 with him or his son, there's another indictment against Trump the next day. 85 00:06:44,319 --> 00:06:50,240 That's insane, And truthfully, I don't understand how they are allowed to get 86 00:06:50,600 --> 00:07:01,519 away with it so blatantly. If it's a criminal, and it's not defensible, 87 00:07:01,560 --> 00:07:05,319 and you're having and you have to go ahead, and and and and 88 00:07:05,319 --> 00:07:14,519 and indict a president for having paperwork that's top secret paperwork, okay, files 89 00:07:14,519 --> 00:07:19,720 and stuff at his home and raid him. How does that not also happen 90 00:07:20,120 --> 00:07:25,720 for the sitting president when they know that there's not only one place, not 91 00:07:25,800 --> 00:07:30,920 only two, but three or four places he had top secret files strewn all 92 00:07:30,959 --> 00:07:40,480 over the place. But nothing happens. Every single liberal that hates Trump, 93 00:07:41,079 --> 00:07:45,759 I go forget the names. Let's look at the situation. If this happened 94 00:07:45,759 --> 00:07:47,759 to one should have happened to the other and they go absolutely. I said 95 00:07:47,759 --> 00:07:55,639 to why isn't it well, we all know why they hide their heads in 96 00:07:55,680 --> 00:08:00,240 the sand. The Democrats are the ones that are blowing this thing right now 97 00:08:00,279 --> 00:08:05,160 because they have an opportunity to clean it up. But nobody wants to clean 98 00:08:05,199 --> 00:08:09,360 it up. And the only way, the only way, And I don't 99 00:08:09,360 --> 00:08:13,120 know how we change this unless we get a president in there that we really 100 00:08:13,160 --> 00:08:16,199 believes this is the way to do it is we need term limits. It's 101 00:08:16,240 --> 00:08:20,560 about damn time we got term limits. Because Biden has been there at forty 102 00:08:20,600 --> 00:08:24,199 some odd years now, he just does business the way he always done it, 103 00:08:24,199 --> 00:08:28,040 which is telling me we've been cooking for hundreds of years and we were 104 00:08:28,560 --> 00:08:33,960 we you know, let's think about those people by forget going back to like 105 00:08:33,440 --> 00:08:37,879 the Washington and Lincoln and all those days when there's nothing going on. Jefferson, 106 00:08:37,240 --> 00:08:41,159 just think recently. Think go back to Roosevelt and all and the things 107 00:08:41,159 --> 00:08:46,519 that were going on back then. We didn't know about it because nobody really 108 00:08:46,519 --> 00:08:52,519 brought it up. We didn't have social media. Everybody was pro America as 109 00:08:52,559 --> 00:08:56,799 we become against America, and we have allowed people to do that, which 110 00:08:56,879 --> 00:09:03,919 is absolutely absurd. You've seen the the diverse types of people thinking, and 111 00:09:03,000 --> 00:09:09,600 they come up with all this garbage to go after one but not the other. 112 00:09:09,799 --> 00:09:13,879 I'm about cleaning it all up, all of it, all of it. 113 00:09:13,360 --> 00:09:16,639 Term limits will make us do that. They tell us they have to 114 00:09:16,720 --> 00:09:20,159 vote on it, and that's why they'll never happen. Well, how ridiculous 115 00:09:20,360 --> 00:09:28,200 is that we should just don't vote anybody in there. I don't know what 116 00:09:28,240 --> 00:09:31,440 we can do, but we got to figure that out because they'll put every 117 00:09:31,559 --> 00:09:37,559 ridiculous little in your thing that doesn't matter that we have to pay for. 118 00:09:37,840 --> 00:09:43,600 That we pay for and all those hash marks and earmarks, and and the 119 00:09:43,639 --> 00:09:50,039 way they make their deals. We pay for that. But yet we can 120 00:09:50,200 --> 00:09:56,639 get what we want. They vote themselves raises, they vote themselves rules that 121 00:09:56,679 --> 00:10:01,639 they're allowed to go ahead and trade individual company these even though they're they're making 122 00:10:01,679 --> 00:10:07,519 the laws and the regulations for that. We'll see how far that builder that 123 00:10:07,600 --> 00:10:09,720 came up a couple of weeks ago that says that they shouldn't be able to 124 00:10:09,759 --> 00:10:16,399 do it. We'll see how far that gets. You see it, Hunter 125 00:10:16,759 --> 00:10:26,000 Biden has been brought to the surface showed that he did not pay his taxes, 126 00:10:26,039 --> 00:10:33,879 which he's admitted it in about one point two million. He's called country 127 00:10:33,919 --> 00:10:39,440 clubs as right of us, and there were really sex clubs. He's he's 128 00:10:41,000 --> 00:10:50,840 done so many illegal things and yet nothing happened to him. There was justice 129 00:10:50,879 --> 00:10:54,279 with this judge who said, oh wait a second, there's no way he's 130 00:10:54,320 --> 00:11:00,519 getting immunity for everything. And I hope he just blew it. I hope 131 00:11:00,519 --> 00:11:03,120 we stand up right now and put him right where he belongs. If you 132 00:11:03,360 --> 00:11:11,039 or I didn't pay our taxes on purpose, this is the I R s 133 00:11:11,120 --> 00:11:16,039 and ordered them. They know the money tram came from China and Ukraine and 134 00:11:16,240 --> 00:11:22,159 Romania, but we allow it to happen because we have to be stuck with 135 00:11:22,200 --> 00:11:31,039 these same swampy, hypocritical, non honest politicians. The only way we fix 136 00:11:31,120 --> 00:11:37,840 it is that we get to the point that they agree that they're there for 137 00:11:37,840 --> 00:11:43,799 the American people and agree with us that they have term limits. There's prestige 138 00:11:43,919 --> 00:11:48,120 enough, and you'll get plenty of jobs out of there because they don't do 139 00:11:48,159 --> 00:11:52,519 it for one hundred and fifty one hundred seventy five two hundred thousand dollars that 140 00:11:52,600 --> 00:12:00,120 they might make. But somehow they come out or fifty seventy one hundred three 141 00:11:58,600 --> 00:12:05,679 hundred million dollars better than they went in. The Obama has had nothing, 142 00:12:05,440 --> 00:12:11,960 absolutely nothing. What are they worth now? Half a billion dollars? The 143 00:12:11,080 --> 00:12:16,080 Clintons had nothing. They're worth close to a billion dollars seven eight hundred million, 144 00:12:18,480 --> 00:12:20,879 But you have to claim they don't have anything. How's this happened? 145 00:12:22,120 --> 00:12:24,840 How do we allow it to happen? And why does it happen in front 146 00:12:24,840 --> 00:12:30,200 of everyone's face? Because if you open your mouth, then you don't join 147 00:12:30,240 --> 00:12:33,440 the club and be part of the good old boys stuff. So everyone has 148 00:12:33,519 --> 00:12:37,240 power and they help each other stay in This is what happens. Term limits, 149 00:12:37,480 --> 00:12:41,879 term limits. Term limits are somehow, some way, somebody that understands 150 00:12:41,879 --> 00:12:46,240 the system. We've got to figure out how to do it. Governors have 151 00:12:46,399 --> 00:12:54,960 term limits, so the state's owned that dumb But somehow we let us senators 152 00:12:54,360 --> 00:13:01,039 and the House representatives be eighty ninety years old sitting in there, just taking 153 00:13:01,039 --> 00:13:07,919 an advantage of us. So we move forward, and it's a mess. 154 00:13:07,440 --> 00:13:11,039 It's a mess, and if we're gonna blow it up, blow it up, 155 00:13:11,200 --> 00:13:16,799 and let's get started with people that can. You came in the economic 156 00:13:16,840 --> 00:13:24,039 reports, okay, they come out on Friday, you can't even believe them 157 00:13:24,240 --> 00:13:31,480 because they keep refining them by forty fifty eighty one hundred thousand dollars whatever they 158 00:13:31,519 --> 00:13:35,000 need to do to say, Okay, we had this, Betty All. 159 00:13:35,080 --> 00:13:39,840 Really it was forty thousand less jobs, and I don't get that. Don't 160 00:13:39,879 --> 00:13:46,919 give us inaccurate numbers that drive the stock market when you don't really know the 161 00:13:46,960 --> 00:13:54,159 answers. You don't know the answer. Supposedly, defend is going based on 162 00:13:54,639 --> 00:13:58,399 unemployment numbers. They're based on job creation numbers, all the stuff, and 163 00:13:58,440 --> 00:14:03,639 then when they get revised, they're making decisions on the before revision ones. 164 00:14:07,039 --> 00:14:15,639 It makes no sense, especially in today's volatile markets, that these stocks, 165 00:14:15,679 --> 00:14:20,519 these companies, the interest rates, the gold market, everything is trading off 166 00:14:20,559 --> 00:14:24,639 of these economic numbers, trying to forecast what the Federal Reserve is going to 167 00:14:24,720 --> 00:14:33,320 do. The job reports came in. Hourly pay went up again point four 168 00:14:33,399 --> 00:14:37,480 percent. That's great, people working. Why can't we get people back to 169 00:14:37,519 --> 00:14:45,240 work? The problem we had was hours worked in a week went down a 170 00:14:45,240 --> 00:14:48,279 little bit, not a lot, but it went down to thirty four point 171 00:14:48,320 --> 00:14:58,120 six hours a week. Everybody wants more money and work less unemployment went down 172 00:14:58,159 --> 00:15:03,519 to three point five percent, none of the Sometimes these numbers don't make sense. 173 00:15:05,159 --> 00:15:11,399 Unemployment went down, job creation was still one hundred and eighty seven thousand. 174 00:15:15,000 --> 00:15:16,200 Pay has gone up. So everyone that used to say, oh, 175 00:15:16,279 --> 00:15:18,720 they need to get more, they got to get a living wage. It's 176 00:15:18,799 --> 00:15:24,279 here. People are making money. They don't want to work, and beyond 177 00:15:24,320 --> 00:15:30,039 that, they don't want to get educated in the jobs that pay more. 178 00:15:30,799 --> 00:15:35,399 They just think they should get paid more. We're giving away too many free 179 00:15:35,440 --> 00:15:39,840 things, too much money and gets what happened. The biggest news of the 180 00:15:39,879 --> 00:15:50,000 week is that our government debt a US government bonds that have triple A weighted 181 00:15:50,120 --> 00:15:52,759 they and they always have except one other time in twenty eleven. They got 182 00:15:52,799 --> 00:15:58,120 knocked down too, But that was understanding with all the bank failures we were 183 00:15:58,120 --> 00:16:07,039 having. Got knocked down from triple A rated to double A plus. Now 184 00:16:07,039 --> 00:16:11,399 you have all these hot chides, Warren Buffett, Jamie Diamond, Hey, 185 00:16:11,399 --> 00:16:14,840 it doesn't really matter. We're still the strongest. Everybody does it. That 186 00:16:14,919 --> 00:16:19,600 makes sense, of course it does. But what they're not telling you is 187 00:16:19,639 --> 00:16:26,919 the long term effect of a downgrade in your debt means that interest rates will 188 00:16:26,960 --> 00:16:33,120 stay higher. For longer, because now, in order to give out that 189 00:16:33,200 --> 00:16:36,639 debt, people are gonna want to get paid a little bit more because it's 190 00:16:36,639 --> 00:16:44,039 not triple A rated, and if it's not triple A rated, you gotta 191 00:16:44,080 --> 00:16:48,519 get a few percentage more than what you were getting. And that does not 192 00:16:48,679 --> 00:16:56,759 bolde well in an economy that we don't have enough money to pay for everything, 193 00:16:57,720 --> 00:17:03,480 and we're an economy with an administration that wants to do nothing but to 194 00:17:03,600 --> 00:17:10,240 increase regulation. Somebody asked me the other day what was the biggest difference between 195 00:17:10,319 --> 00:17:17,519 Trump's economy and Biden's economy, And I said it was the philosophy of regulation. 196 00:17:18,599 --> 00:17:25,359 Trump wanted to deregulate as much as he could in order to put the 197 00:17:25,519 --> 00:17:30,559 burden on corporations to spend their money, to grow, to hire, to 198 00:17:30,759 --> 00:17:36,319 prosper And the mentality of that was businesses and people. They were able to 199 00:17:36,359 --> 00:17:38,880 look out into a future and say, hey, this is good, this 200 00:17:40,039 --> 00:17:42,839 is prosperous. I can spend money today because I'm going to see the return 201 00:17:42,920 --> 00:17:49,839 five, seven, ten, fifteen years from now. With Biden, you're 202 00:17:49,880 --> 00:17:56,440 afraid to do anything because he keeps regulating everything that costs everyone money, especially 203 00:17:56,119 --> 00:18:03,920 the small business people. I would be the audit used to cost us five 204 00:18:03,960 --> 00:18:11,160 grand, then they went to this PCOB thing and then it was fifteen eighteen 205 00:18:11,200 --> 00:18:14,519 grand, then it was twenty five, then thirty, then thirty five, 206 00:18:14,559 --> 00:18:18,319 then forty, and every single year it goes up to almost fifty thousand dollars. 207 00:18:18,319 --> 00:18:25,359 That's ridiculous. They order fin your orders, sec orders. What do 208 00:18:25,400 --> 00:18:29,039 you need to have this? You get an order to financial statement for small 209 00:18:29,079 --> 00:18:33,000 companies. We are not a big company, but yet they want the same 210 00:18:33,319 --> 00:18:37,559 thing that Marylands or JP Morgan or any of these people get, or RBC 211 00:18:38,160 --> 00:18:42,319 as a whole on the high they want us to have the same audit. 212 00:18:45,240 --> 00:18:48,319 Well, of course it's going to cost money, a lot of money. 213 00:18:48,599 --> 00:18:52,839 So what does that do it It gets passed on you continually. It's the 214 00:18:53,039 --> 00:18:57,599 it's the end user that ends up getting hurt by it. If people want 215 00:18:57,599 --> 00:19:03,640 to stay in business, we are the end of uses clients and uses shoppers 216 00:19:04,039 --> 00:19:10,559 and uses so to live. It course, so much more money. And 217 00:19:10,599 --> 00:19:14,359 they called inflation everybody. They don't do anything about getting the inflation down. 218 00:19:14,759 --> 00:19:18,440 Sure it's come down from eight to five or something like that, but they 219 00:19:18,480 --> 00:19:26,640 haven't done any things through the regulatory political system. To sustain us having low 220 00:19:26,920 --> 00:19:32,079 inflation. All they're doing is letting them making the Federal Reserve keep raising interest 221 00:19:32,160 --> 00:19:37,400 rates, which is not the only way to do it. It's a tool. 222 00:19:38,039 --> 00:19:45,200 We need that tool. But just think now, if we have something 223 00:19:45,200 --> 00:19:48,920 that happens and the economy rolls over, which you see is doing it a 224 00:19:48,960 --> 00:19:56,000 little bit, but everything stays high, and keep raising interest rates, it's 225 00:19:56,000 --> 00:20:00,799 going to affect the entire economy. Now, the economy starts going and has 226 00:20:00,839 --> 00:20:03,119 it and gets really tough, what is a fellow reserved. The only thing 227 00:20:03,160 --> 00:20:08,440 they can do is low interest rates. The low interest rates, we could 228 00:20:08,440 --> 00:20:14,839 have massive inflation again. Somebody asked me the other days, is it possible 229 00:20:14,880 --> 00:20:19,359 we can go back to that double digit environment? I said absolutely. If 230 00:20:19,359 --> 00:20:22,759 we screw this up, we'll be back to ten to eleven, twelve thirteen. 231 00:20:23,920 --> 00:20:32,240 Mortgage is again, and it's gonna shut us down. We gotta stop 232 00:20:32,279 --> 00:20:36,079 spending, you know, if you have money, right, And one of 233 00:20:36,079 --> 00:20:40,240 the reason the economy is doing well is people during the pandemic and all they 234 00:20:40,240 --> 00:20:45,160 weren't spending much. They were scared and the government kept giving everyone money. 235 00:20:45,680 --> 00:20:49,440 Well, everything opened up. They started making plans for late twenty two twenty 236 00:20:49,480 --> 00:20:53,359 three. For sure, mortgage are doing well. People are taking money out 237 00:20:53,680 --> 00:21:00,440 doing some stuff they should do. But going to Europe, travel around, 238 00:21:00,519 --> 00:21:03,480 spending on things. It was penned up the man from all the money that 239 00:21:03,599 --> 00:21:08,359 people have had. That money's going to run out. But when states did 240 00:21:08,359 --> 00:21:12,920 everybody have this extra money left over from the pandemic and different sources and different 241 00:21:12,960 --> 00:21:17,519 things. You know, they had a surplus there for a while in New 242 00:21:17,599 --> 00:21:22,119 York, they had a surplus there in California, and now they don't. 243 00:21:22,359 --> 00:21:26,200 I don't believe it. Where are they spending the money on? Stop giving 244 00:21:26,200 --> 00:21:36,880 it away just to get reelected. It's not gonna happen. We're in an 245 00:21:36,960 --> 00:21:41,519 environment that's very nervous to me. And regardless, you're better stay in short 246 00:21:41,640 --> 00:21:47,960 term bonds right now until we see it, until we see a turn the 247 00:21:48,000 --> 00:21:52,559 markets. You better mitigate your risk, you bet, you better understand risk 248 00:21:52,640 --> 00:21:56,559 and reward. Understand the tools you can use to hadge raise money, sell 249 00:21:56,680 --> 00:22:03,359 calls by the inverse funds, buy puts. There's a lot of things to 250 00:22:03,440 --> 00:22:07,920 do because this market has resk yet we can come back to forty three hundred. 251 00:22:07,960 --> 00:22:10,039 I don't think that could be the bottom. I think we can go 252 00:22:10,079 --> 00:22:14,799 back to where we were if things get bad over the next year. I 253 00:22:14,839 --> 00:22:18,559 hope it doesn't. It affects my business, it affects the psyche, it 254 00:22:18,599 --> 00:22:25,599 affects everything. But I have to be honest and realistic that this administration does 255 00:22:25,839 --> 00:22:32,519 nothing to help us grow the economy. It's on a house of cards right 256 00:22:32,559 --> 00:22:37,000 now. I love to build things on cement steps, so when you get 257 00:22:37,079 --> 00:22:38,480 knocked down, you go two or three steps and you're able to come back 258 00:22:38,519 --> 00:22:42,559 and go further. This economy. Think about all the things that are out 259 00:22:42,599 --> 00:22:45,519 there. We don't drill, we don't do oil, oil prices going back 260 00:22:45,599 --> 00:22:51,960 up again. All we want to do is talk about ev electric vehicles. 261 00:22:52,119 --> 00:22:56,799 Do you know Ford is gonna lose three billion dollars three billion dollars, three 262 00:22:56,000 --> 00:23:02,039 billion dollars, probably more than that if they weren't using accounty because they can't 263 00:23:02,039 --> 00:23:03,319 get those cars out. They can't do the things they want to do. 264 00:23:03,680 --> 00:23:11,559 People don't want them. They don't meet the needs of people that want to 265 00:23:11,759 --> 00:23:15,680 drive. If you're driving around in an area maybe ten twenty miles, sure 266 00:23:15,759 --> 00:23:18,720 it's great, and you'll be able to afford the things at home, and 267 00:23:18,839 --> 00:23:23,240 you don't mind waiting. Sure, they're great. Our society is built on 268 00:23:23,400 --> 00:23:29,839 quickness and effectiveness and efficiency. An EV car has none of that right now. 269 00:23:30,039 --> 00:23:34,039 And it's just a lot of talk from the left about cleaning up and 270 00:23:34,160 --> 00:23:37,640 doing this, and they don't do half the stuff that they need to do. 271 00:23:38,759 --> 00:23:45,799 High bred, high bread like everything like everything in life. Okay, 272 00:23:45,079 --> 00:23:49,279 allocations, a little bit of this, a little bit of that makes a 273 00:23:49,440 --> 00:23:56,720 great strong economy. What most of these people that are so pro climate and 274 00:23:56,440 --> 00:24:02,759 pro environment and so like, we need EV, we need EV they don't 275 00:24:02,759 --> 00:24:08,640 even realize that most of the electricity they're getting is from coal fired plants and 276 00:24:08,759 --> 00:24:15,519 the others is natural gas and nuclea. Very self sustainable, very few self 277 00:24:15,559 --> 00:24:22,200 sustainable energy is coming out to do empower their cause. We'll be back. 278 00:24:22,279 --> 00:24:26,119 We're packed with a lot of good information today. We appreciate your listening to 279 00:24:26,279 --> 00:24:38,279 The Money Matter Show. Welcome back, everybody. It's the Money Matter Show, 280 00:24:38,319 --> 00:24:42,319 and we do appreciate you listening in. Remember if you can't listen in 281 00:24:42,960 --> 00:24:48,240 at eight to ten on Sundays, we have podcasts, which is our radio 282 00:24:48,319 --> 00:24:52,039 show. You go to our website. They're all on YouTube. You can 283 00:24:52,119 --> 00:24:56,079 go to iHeartRadio and listen to them. You can just go ahead and say, 284 00:24:56,119 --> 00:24:59,359 hey, Money Matters with Dean Greenberg and you and you and you get 285 00:24:59,359 --> 00:25:03,400 a bunch of them. Um, we just uh we have them for you 286 00:25:03,559 --> 00:25:08,200 to listen, to learn and to ask us questions. I like that podcast 287 00:25:08,240 --> 00:25:14,720 because no commercials. Commercial free. Listen to the Money Matter Show commercial free. 288 00:25:14,880 --> 00:25:18,160 Well there's like one commercial to start the show, yeah, right at 289 00:25:18,200 --> 00:25:21,440 the beginning, and then zoom pass right through. Yeah. It's a pretty 290 00:25:21,480 --> 00:25:23,599 nice service, right. Big news this week was Fitch. Did you talk 291 00:25:23,599 --> 00:25:26,400 about that in the monologue? Little bit? Where were you? Was I 292 00:25:26,519 --> 00:25:30,319 not loud enough for you? I was in the other I was in the 293 00:25:30,400 --> 00:25:33,559 other room, but I wasn't listening. Yes, we talked about Fitch. 294 00:25:34,160 --> 00:25:38,039 We talked about the downgrade. We talked about how you know, he had 295 00:25:38,079 --> 00:25:42,240 Buffett and Diamond out there saying it's uh, doesn't really matter too much, 296 00:25:42,279 --> 00:25:45,400 was Sue the grade. It's is ridiculous. It is ridiculous, But there 297 00:25:45,519 --> 00:25:49,559 is a long term effect to it because when you get downgraded, it costs 298 00:25:49,640 --> 00:25:53,519 more money for people to want to buy your bonds, and we have so 299 00:25:53,680 --> 00:25:57,880 many trillions of bonds out there. Dave even in a through a quarter higher 300 00:25:59,319 --> 00:26:02,880 cost you and me money out of our taxes. And there are the other 301 00:26:03,119 --> 00:26:06,720 rating services besides fish. But it just it's kind of a little flying the 302 00:26:06,839 --> 00:26:10,640 ointment, if you will. Just it makes it a little bit less desirable 303 00:26:10,720 --> 00:26:14,279 than this straight triple A. And we saw rates pop up to at the 304 00:26:14,359 --> 00:26:18,680 highest level in about nine months, and they're already and they're just not that 305 00:26:18,839 --> 00:26:23,680 far away from the highest rates in twenty years. So this is this is 306 00:26:23,720 --> 00:26:29,559 why it's ridiculous, right. I challenge anybody who has a billion dollars, 307 00:26:29,599 --> 00:26:33,720 a more million dollars, the more one hundred thousand dollars the more, tell 308 00:26:33,799 --> 00:26:37,759 me what country you want to put your money in, and I'll give you 309 00:26:37,839 --> 00:26:41,000 a one way ticket to go there right now. Yeah, where we are 310 00:26:41,039 --> 00:26:44,279 you gonna put it and think it's safer than the United States of America. 311 00:26:44,880 --> 00:26:48,720 If this is the mentality that we have of our citizens here today, that's 312 00:26:48,759 --> 00:26:52,160 where we got to start. I'll tell you right now. We got to 313 00:26:52,240 --> 00:26:55,799 change our culture. We got to change our minds. We become so weak 314 00:26:56,079 --> 00:26:59,759 that we think that something else. And you know what you ask that question, 315 00:27:00,119 --> 00:27:02,559 Oh, you know when people say that, so what do you want 316 00:27:02,559 --> 00:27:06,000 to put your money? Well, I don't know. Don't be so stupid 317 00:27:06,319 --> 00:27:11,519 and think that it was okay to downgrade our bonds. Although although you've got 318 00:27:11,599 --> 00:27:15,000 to admit, if if the if our country were a stock, you wouldn't 319 00:27:15,000 --> 00:27:18,480 want to own this stock? Right, what would you? I mean you 320 00:27:18,480 --> 00:27:19,920 would what would you own? Instead? No? I mean give me a 321 00:27:21,000 --> 00:27:22,640 country. Oh you're saying that I have to choose a country. Yeah, 322 00:27:22,759 --> 00:27:29,039 right, Um, let's see, probably Zimbowie, I don't know. My 323 00:27:29,200 --> 00:27:36,759 point is stop allowing the world to put down America and if you don't like 324 00:27:36,839 --> 00:27:38,359 it here, get the hell out, because you know what we need to 325 00:27:38,400 --> 00:27:45,160 get back. We were We are on a very brink of I don't know. 326 00:27:45,240 --> 00:27:48,960 I don't want to say a disaster, but but like a like a 327 00:27:48,039 --> 00:27:53,680 powder keg between China and Russia, the Middle East, South America. It's 328 00:27:53,799 --> 00:27:57,920 ridiculous, and we're doing nothing to actually bring ourselves in and get stronger. 329 00:27:59,000 --> 00:28:00,880 But isn't that exactly what fits is trying to say. Yeah, they're saying 330 00:28:00,920 --> 00:28:04,519 that we spent way too much money over the trying to stay with the down. 331 00:28:04,759 --> 00:28:08,200 They're wrong. We've continued to say on this show that the government spending 332 00:28:08,200 --> 00:28:11,640 too much money and that's what Fits exactly said was why they're down no problem, 333 00:28:11,720 --> 00:28:17,720 downrade the others too, spending too much money and no solution. Well, 334 00:28:17,720 --> 00:28:21,680 I understand Dean's point, there's no better alternative, but still there are 335 00:28:21,799 --> 00:28:25,000 problems that have been showing up in the fiscal governance of the United States. 336 00:28:25,079 --> 00:28:27,160 Well, double A plus is not exactly jung bonds. Okay, I mean 337 00:28:27,839 --> 00:28:30,960 it's really good. We went for cripolated double. But my point is, 338 00:28:32,000 --> 00:28:34,960 say there's no other countries they downgraded and they got worse problems than we have, 339 00:28:36,960 --> 00:28:38,920 and nobody would put all their money in that country other than now. 340 00:28:40,000 --> 00:28:41,920 It's what I'm saying, down grade us, downgrade the world right now. 341 00:28:42,160 --> 00:28:48,000 Put everybody on notice, everybody, because you know what the recession hits, 342 00:28:48,000 --> 00:28:51,359 it's hitting everyone. The pandemic hits, it hits everyone. And who gets 343 00:28:51,440 --> 00:28:56,000 stuck making all the damn vaccines paying for all that stuff we do? Anytimes 344 00:28:56,039 --> 00:28:57,680 there's a war, who pays all the money to it? We do? 345 00:28:59,359 --> 00:29:03,119 Okay, So if you want to start and knock that's down and everything else, 346 00:29:03,519 --> 00:29:07,480 and and and and and allowing to buyden administration to say it's Trump's fault, 347 00:29:07,000 --> 00:29:15,680 Trump's fault, we have we have a very very um hypocritical media and 348 00:29:15,079 --> 00:29:18,920 and and sources that we get stuff from. That's all I mean. The 349 00:29:18,920 --> 00:29:22,319 administration is always going to blame the previous administration. We always know that. 350 00:29:22,480 --> 00:29:26,160 That's how it's always worked. But again, when you look at the fact 351 00:29:26,240 --> 00:29:30,000 that our debt has not it hasn't been changed too much. I mean going 352 00:29:30,039 --> 00:29:34,880 from triple A to double A plus. For most banks and insurance um companies, 353 00:29:36,039 --> 00:29:40,200 they have to hold collateral that's double A plus or better. So we're 354 00:29:40,279 --> 00:29:42,680 still in that boat. The only thing that would be really concerning is you 355 00:29:42,759 --> 00:29:47,559 go below double A, then insurance companies could no longer hold it as collateral. 356 00:29:47,599 --> 00:29:49,720 Banks can no longer hold it as collateral. Then they're forced to sell 357 00:29:49,759 --> 00:29:52,119 that and find a different type of collateral. But like you said, Dean, 358 00:29:52,160 --> 00:29:55,759 where they going to go? What's what's a better collateral than a US 359 00:29:55,839 --> 00:30:00,319 treasury? Our deficit is rising to six point three percent of our GDP this 360 00:30:00,480 --> 00:30:03,680 year, and that's up from three point seven percent of the GDP last year. 361 00:30:03,039 --> 00:30:07,279 Our death rising a lot, and that's part of Fitch's reasoning. I'm 362 00:30:07,319 --> 00:30:11,960 not saying they shouldn't have downgraded US. Okay, what I'm saying there's downgrade 363 00:30:11,960 --> 00:30:15,319 to the other countries too well, but they probably have DAN I don't follow. 364 00:30:15,440 --> 00:30:18,480 I don't think there's any company that any country that has a better rating 365 00:30:18,480 --> 00:30:22,079 in the United States currently. There's other triple A rated countries. Really, 366 00:30:22,359 --> 00:30:25,759 we're gonna look it up. You look it up. Fitch has other Triple 367 00:30:25,799 --> 00:30:27,720 A rated countries. Yeah, I would be interested in knowing about that. 368 00:30:27,880 --> 00:30:30,079 We can find it. But I think the funny party. You talk about 369 00:30:30,119 --> 00:30:33,400 Biden, you talk about Trump, and you watching the news media, you 370 00:30:33,440 --> 00:30:37,480 know Box is going after Biden and and CNN is going after Trump, and 371 00:30:37,519 --> 00:30:40,039 there's all they do. Yeah, it's good. And yet here we go 372 00:30:40,279 --> 00:30:42,880 twenty twenty four, it's gonna be Biden versus Trump again. I don't see 373 00:30:42,880 --> 00:30:48,759 any any way that that's not going to happen. I don't see Biden there. 374 00:30:48,559 --> 00:30:52,319 You don't think he's gonna run, No, it's not that he's gonna 375 00:30:52,400 --> 00:30:56,079 run. He's not gonna be able to run. What's the alternative? Then 376 00:30:56,839 --> 00:30:59,759 they're gonna remove them? Or you think he's physically not going to be able 377 00:30:59,759 --> 00:31:02,960 to Yeah, something, someone's gonna replace him, someone's gonna talk to him. 378 00:31:03,359 --> 00:31:04,839 Do you think he's making his own decisions. No, I don't think 379 00:31:04,839 --> 00:31:08,440 anybody's thought that from day one. Okay, I do not think that they're 380 00:31:08,440 --> 00:31:15,079 gonna have the problem is the puppets tears, Okay, need to find somebody 381 00:31:15,160 --> 00:31:18,559 they can control. If they put him in there, they will Michelle, 382 00:31:19,799 --> 00:31:22,440 there's talk of that. That'd be a good one for them. I think, 383 00:31:22,480 --> 00:31:26,039 Wow, they can control them. They see what they're going to do 384 00:31:26,279 --> 00:31:29,599 is what they always do. How did they run the last campaign in the 385 00:31:29,680 --> 00:31:33,279 basement, right, they use the pandem out of the public eye. Yeah, 386 00:31:33,640 --> 00:31:37,839 they will not make this change into three months before the election. Can 387 00:31:37,920 --> 00:31:41,039 Nobody will have time other than the media just telling you how great it say 388 00:31:41,119 --> 00:31:45,480 it's say if it's Michelle Obama, right, how great she is, and 389 00:31:45,640 --> 00:31:48,039 everyone, Oh, it's great, we finally have somebody else to vote for. 390 00:31:48,680 --> 00:31:52,599 Okay. That's how they're gonna don't have time to dig into the past, 391 00:31:52,759 --> 00:31:56,599 right or anything period. They're gonna pull it the police switcher because they 392 00:31:56,680 --> 00:32:00,319 know they're up against it right now. Well, it's also I mean, 393 00:32:00,359 --> 00:32:02,279 you gotta think that's why Trump's trial has got to be set for next June. 394 00:32:04,160 --> 00:32:07,640 Why it leans up leads it right up to the election. Yeah, 395 00:32:07,640 --> 00:32:09,680 but here's here. You mean you're talking about him being on trial during the 396 00:32:09,759 --> 00:32:14,960 election, Is that what you're thinking. Yeah, yeah, No, it's 397 00:32:14,960 --> 00:32:17,519 like leading right up to the election. The trial starts next summer. There's 398 00:32:17,559 --> 00:32:22,240 no way they're gonna let that trial complete until after the election. The lawyers 399 00:32:22,279 --> 00:32:25,880 will use so many different things because obviously if if he gets it, if 400 00:32:25,920 --> 00:32:31,319 he gets uh found guilty, right, if he's of a felony, then 401 00:32:31,680 --> 00:32:35,720 in a constitution says he can't. Now, we've been under that impression. 402 00:32:35,799 --> 00:32:38,079 That is not true. Really told me the other day. I know, 403 00:32:38,279 --> 00:32:40,759 No, we've been We told you that, dude, we've been under that. 404 00:32:40,920 --> 00:32:44,519 That is absolutely not true. Okay, why did you tell me that 405 00:32:44,599 --> 00:32:49,160 the three requirements to run for president? Three requirements be a native born US 406 00:32:49,240 --> 00:32:52,240 citizen. You've got to be thirty five years of old as of age, 407 00:32:52,440 --> 00:32:55,160 and you have to have lived in the United States for fourteen years. You 408 00:32:55,279 --> 00:33:00,000 can be a murderer on death row and run for president. That is insane, 409 00:33:00,039 --> 00:33:04,599 isn't that something? In fact in nineteen twenty in nineteen twenty, a 410 00:33:04,759 --> 00:33:08,799 socialist candidate did run for president from prison got three percent of the vote, 411 00:33:09,359 --> 00:33:13,640 and of course Lyndon Laruss who runs every year. He ran from prison in 412 00:33:13,759 --> 00:33:16,359 nineteen ninety two. So Trump, if he were convicted of a felony, 413 00:33:16,640 --> 00:33:22,880 could continue his campaign and run for president and ultimately be elected president. Then 414 00:33:22,920 --> 00:33:25,480 you've got something unprecedented that you'd have to worry about. But yes, Dan, 415 00:33:25,519 --> 00:33:29,119 you're absolutely right at all. He'll run for jail and you guys, 416 00:33:29,400 --> 00:33:30,960 oh, we can't do that. So we can. Well, that's the 417 00:33:31,160 --> 00:33:35,039 one. One of the his opponents said, Trump is running to stay out 418 00:33:35,079 --> 00:33:37,599 of prison. Right, Well, it doesn't matter, and that matters. 419 00:33:37,759 --> 00:33:42,200 Trump obviously don't want to president, but it does not matter. What is 420 00:33:42,200 --> 00:33:45,720 that fascinating? If he becomes president from jail, Can he go ahead and 421 00:33:45,960 --> 00:33:52,279 have a jail like uh, constructed right on the White House? This is 422 00:33:52,559 --> 00:33:55,559 this is one so we can go from work to home. You have a 423 00:33:55,680 --> 00:33:59,319 you have a work work visa. He can go to work during the day 424 00:33:59,599 --> 00:34:02,440 and then have to sleep in the jail. You know, we that's unprecedented. 425 00:34:02,519 --> 00:34:07,039 But obviously I think obviously you'd have to you'd have to suspend the sentence 426 00:34:07,920 --> 00:34:10,239 while he serves this term and then put him back in house arrest. Fought 427 00:34:10,280 --> 00:34:13,639 in himself, wouldn't he? I felt like you could find in yourself. 428 00:34:13,760 --> 00:34:15,599 Right, that's that's a good point. In fact, that's something I've heard 429 00:34:15,599 --> 00:34:20,039 people talk about that Trump gets elected, he'll pardon himself. I mean that, 430 00:34:20,400 --> 00:34:22,559 but it's pretty something that we've been under the fault. Well, there's 431 00:34:22,559 --> 00:34:24,840 a lot of jobs. If you're a felon, good luck, you're never 432 00:34:24,920 --> 00:34:29,360 gonna get that job, isn't or something. But you can't vote. You 433 00:34:29,440 --> 00:34:31,199 can't even be a financial advisor if you're a felon, if I'm correct, 434 00:34:31,280 --> 00:34:34,400 if you can, you can't. Also if you can, yeah, you 435 00:34:34,440 --> 00:34:38,280 can be a murderer and and be a financial bander. Okay y, yeah, 436 00:34:38,840 --> 00:34:43,079 no, you could have a dull Yeah listen, you have to just 437 00:34:43,559 --> 00:34:49,880 uh put that all down, whatever your background. Yeah, that's crazy. 438 00:34:49,920 --> 00:34:52,000 That's why most people don't do it if something bad, because everyone season says 439 00:34:52,000 --> 00:34:54,840 I don't want to be with that. But even the San Francisco Chronicle and 440 00:34:54,880 --> 00:34:58,719 you can't get much further left than that says Trump is never going to be 441 00:34:58,800 --> 00:35:02,400 convicted of anything because for a serious crime, you need one hundred percent of 442 00:35:02,480 --> 00:35:07,559 the jury. Supreme Court ruling in twenty twenty, and they're not gonna get 443 00:35:07,559 --> 00:35:10,719 one hundred percent of jurors anywhere, I guess unless they have it in downtown 444 00:35:10,800 --> 00:35:15,360 Washington, DC. Maybe even still not to mention they're trying to indict him 445 00:35:15,400 --> 00:35:22,239 on stuff. Still, most people would never ever, ever even even be 446 00:35:22,360 --> 00:35:24,320 brought up on No. Okay, I mean, you know, I like, 447 00:35:24,480 --> 00:35:30,440 is that guy what's his name, Gersha Gershwin, the attorney the uh 448 00:35:30,639 --> 00:35:35,880 he's actually a Democrat, but he knows the law from Harvard, but he 449 00:35:36,000 --> 00:35:42,440 always talks about how this is the yeah Gershawitz, Yeah, yeah, the 450 00:35:42,679 --> 00:35:46,239 worst lawyring. He said, uh, like he said. I heard him 451 00:35:46,239 --> 00:35:52,079 the other night. He said, Laura one on one says, you shouldn't 452 00:35:52,280 --> 00:35:55,239 even be indict in this person. Ridiculous. We'll be right back. It's 453 00:35:55,239 --> 00:36:01,760 the Moneymounting Shows. Welcome back, everybody. We are here with the Bunny 454 00:36:01,800 --> 00:36:06,320 Bundy Show, and we have the information that we talked about before. So 455 00:36:06,320 --> 00:36:08,079 I want to go back to the triple rating from Fitch and everything. There's 456 00:36:08,119 --> 00:36:13,320 ten other countries that have triple A rating. There are there are Australia one 457 00:36:13,480 --> 00:36:17,760 with Fitch. Australia is one, then a bunch of European countries Denmark, 458 00:36:19,480 --> 00:36:24,559 Germany, Luxembourg, Netherlands, Switzerland, Norway, Sweden, EU, Singapore, 459 00:36:25,400 --> 00:36:29,199 those are all the ones that have to ratings. Still, we're still 460 00:36:29,239 --> 00:36:34,440 triple A rated with Moody's DVRs, but we are double A plus with SMP 461 00:36:34,559 --> 00:36:37,280 and FISH now and the S and P S houses double A plus in two 462 00:36:37,320 --> 00:36:43,079 thousand and eleven. S P, S ANDP went to double A plus in 463 00:36:43,119 --> 00:36:45,800 two thousand and eleven and then never went back up. Yeah, exactly, 464 00:36:45,320 --> 00:36:50,960 that's what they just said. It's still a plus plus two eleven. Yep. 465 00:36:51,199 --> 00:36:54,039 So going back to what I said before, if anybody wants to go 466 00:36:54,159 --> 00:36:59,159 live in those countries, go ahead. They're triple A rated. If you 467 00:36:59,199 --> 00:37:00,400 want to go to up though, started next year, you're gonna have to 468 00:37:00,440 --> 00:37:06,159 pay for a visa. Yeah, sorry, seven dollars and seventy nine cents 469 00:37:06,159 --> 00:37:09,360 they'll cost you. It's just the whole process of trying to get it. 470 00:37:10,280 --> 00:37:12,760 Yeah, they said, if you want to do it, So, say 471 00:37:12,760 --> 00:37:15,039 you want to go take a European trip next summer, you probably got to 472 00:37:15,039 --> 00:37:16,559 do it a few months in advance, just to make sure there's nothing to 473 00:37:16,599 --> 00:37:19,639 wait. I mean, I guess they got to pay for a visa to 474 00:37:19,679 --> 00:37:22,320 come visit here. I was wondering about, like, yeah, like people 475 00:37:22,360 --> 00:37:27,519 from Mexico when they vacation here, or people from Canada and they vacation here, 476 00:37:27,559 --> 00:37:30,159 do they have to pay for anything or do they just I don't know 477 00:37:30,159 --> 00:37:31,400 if it's a year, because when I go to Mexico, I don't pay 478 00:37:31,440 --> 00:37:36,559 anything. I just got no vacation here if you're here for a length of 479 00:37:36,639 --> 00:37:38,840 time. But how do they know that, Like I could go vacation there, 480 00:37:38,880 --> 00:37:42,679 Well, they don't if you're if you're hiding, but if they catch 481 00:37:42,719 --> 00:37:45,960 you, then you're not, then they catch you. Yeah. The bottom 482 00:37:45,960 --> 00:37:49,599 line is nobody's policing this. You know, if you can go to a 483 00:37:49,880 --> 00:37:52,920 thirty European countries for a total of like ninety days or something, is what 484 00:37:53,000 --> 00:37:55,639 they're saying. With the visa. I'll bet you there's millions of people in 485 00:37:55,679 --> 00:38:00,480 the United States unexpired visas. Oh sure, millions. Did millions of people 486 00:38:00,559 --> 00:38:06,119 here that they don't even have visas? They came across the boarder, they've 487 00:38:06,119 --> 00:38:08,880 been here, they're working on on on a cash basis, or they have 488 00:38:08,960 --> 00:38:12,800 somebody else that's SOI security number. When we worked at the when I had 489 00:38:12,840 --> 00:38:15,719 the restaurants, people would come in, we would put them through the system. 490 00:38:16,920 --> 00:38:22,119 They had a Social Security number. What could I do? I hired 491 00:38:22,199 --> 00:38:25,119 them because they wanted to work, right, because they had illegal you had 492 00:38:25,159 --> 00:38:28,719 the whole system to go through it. You can't say, oh, that's 493 00:38:28,800 --> 00:38:32,199 not you. I mean they didn't look like you know, they weren't Mexican 494 00:38:32,239 --> 00:38:37,760 and had a name like John Smith. They had they had names that corresponded 495 00:38:37,800 --> 00:38:40,159 to the social Security number. Well, we're gonna let him in and let 496 00:38:40,199 --> 00:38:43,400 him work. We want them to pay taxes, right, they did pay 497 00:38:43,480 --> 00:38:46,039 taxes. Yeah, I mean that's the only way we ever got they ever 498 00:38:46,119 --> 00:38:51,960 got caught. What they can do it for two years and then the person's 499 00:38:52,119 --> 00:38:55,480 name or social Security they had, say in Texas or some other place they 500 00:38:55,519 --> 00:38:59,880 were getting call for not paying the h doing their tax returns. He'm saying 501 00:38:59,920 --> 00:39:01,679 they had a self security and everybody that wasn't there. Yes, right, 502 00:39:02,079 --> 00:39:06,960 Oh, okay, they're using someone else's. Okay, that's a little different 503 00:39:07,000 --> 00:39:10,239 story. Huh, yeah, it's a little illegal. That's some economic numbers. 504 00:39:10,320 --> 00:39:15,800 This week I saw an article the sixty one percent of Americans live paycheck 505 00:39:15,920 --> 00:39:19,880 to paycheck, and the good news, I guess is that's the same as 506 00:39:19,920 --> 00:39:22,440 it was twelve months ago. I was gonna say it isn't gonna get it 507 00:39:22,519 --> 00:39:25,079 isn't getting any worse. Um, Euros getting worse as credit card debt. 508 00:39:25,559 --> 00:39:30,519 Absolutely, the credit card debt is building and that's how there's new highs. 509 00:39:30,519 --> 00:39:31,840 It seems like every month the last year and a half. Yeah, no 510 00:39:32,039 --> 00:39:36,639 question, no question, and the rates are twenty percent plus. Ye. 511 00:39:36,880 --> 00:39:39,199 It's it's just a ticking time bombing. Like you said earlier, Well, 512 00:39:39,239 --> 00:39:43,679 what are they gonna do. They're gonna start for giving the the for certain 513 00:39:43,880 --> 00:39:46,360 uh people that don't have enough money. They're gonna stop for giving the credit 514 00:39:46,400 --> 00:39:51,440 card debt. There you go, that's next. That's next. If factory 515 00:39:51,480 --> 00:39:57,920 activity in China fourth straight month as it declined again, sagging exports as more 516 00:39:57,960 --> 00:40:01,159 and more countries find other play just to get their stuff made, right, 517 00:40:01,199 --> 00:40:06,559 But we did see Starbucks report earnings saying that their China sector is doing better 518 00:40:06,639 --> 00:40:09,880 than expected, So there is some activity out there, just the exports don't 519 00:40:09,880 --> 00:40:14,679 seem to be picking up at all. No, because the manufacturers are starting 520 00:40:14,679 --> 00:40:17,239 to look other places, so they not beholding to China, right, Okay, 521 00:40:17,679 --> 00:40:22,039 it only makes sense. What I don't understand is why we're not bringing 522 00:40:22,119 --> 00:40:30,519 on a medical supplies and drugs back to America. I haven't earn anybody manufacturing 523 00:40:30,599 --> 00:40:35,400 stuff back here again, essential stuff. Remember with the pandemic, we couldn't 524 00:40:35,400 --> 00:40:38,119 get anything. Yeah, I remember. I know. There's just a fairly 525 00:40:38,320 --> 00:40:45,119 significant amount of building of manufacturing facilities in Mexico, right, northeastern and northwestern 526 00:40:45,239 --> 00:40:50,360 Mexico, and primarily so. So they've been listening. They've been listening to 527 00:40:50,440 --> 00:40:52,559 us. Well, it just makes sense that they don't have to listen. 528 00:40:52,599 --> 00:40:55,519 They just look at the facts. Right, Mexican workers are more productive than 529 00:40:55,639 --> 00:41:05,000 Chinese workers. They work harder for four less and uh, what are you 530 00:41:05,000 --> 00:41:07,840 talking about? We know their minimum way we did way, Yeah, we 531 00:41:07,840 --> 00:41:12,800 didn't on the port. Yeah. But the sweatshops in China, they're not 532 00:41:12,880 --> 00:41:15,800 going. There's not too many anymore because a lot of the urbanization in China 533 00:41:15,880 --> 00:41:19,719 led to people going to cities. So a lot of those sweatshops were in 534 00:41:19,840 --> 00:41:22,440 rural areas where they can get away with a lot outside of like those international 535 00:41:22,480 --> 00:41:25,760 trade rules. So in the in the big cities in China, they can't 536 00:41:25,760 --> 00:41:30,320 get away with it. What's your undeployment rate for young people? It's terrible. 537 00:41:32,639 --> 00:41:36,360 It's a big problem. Last week we said twenty one point six percent 538 00:41:36,519 --> 00:41:39,159 on eighteen to twenty four year olds. I wonder if there's any cultural dynamics 539 00:41:39,559 --> 00:41:44,480 that back that up. Maybe they don't like younger workers as much as older 540 00:41:44,480 --> 00:41:49,199 workers. Remember about six months ago we talked about that laydown philosophy in China 541 00:41:49,519 --> 00:41:53,599 where they they just simply quit, uh. Climbing the corporate ladder has been 542 00:41:53,719 --> 00:41:59,719 uh something you had to do right in China, and this laydown group said, 543 00:42:00,039 --> 00:42:02,159 we're done. We aren't they not part of the labor force if they're 544 00:42:02,199 --> 00:42:07,119 trying to be like an entrepreneur on social media. Sure, so that's the 545 00:42:07,199 --> 00:42:09,039 case too. I mean TikTok is huge over there all the social media. 546 00:42:09,039 --> 00:42:13,400 That's what happens here in the US is people trying to be entrepreneurs, start 547 00:42:13,440 --> 00:42:15,920 their online business, their Instagram, and they're not considered part of the labor 548 00:42:15,960 --> 00:42:19,599 force. There's no question that the Chinese economy is one of the ticking time 549 00:42:19,639 --> 00:42:22,199 bombs in on the planet, right, Um, and the last people are 550 00:42:22,280 --> 00:42:25,599 good oil Dean. You mentioned it in your monologue. Up two bucks to 551 00:42:27,000 --> 00:42:30,920 eighty two sixty that's a nine month high. Um, you know, I 552 00:42:30,960 --> 00:42:32,679 don't know what that's going to do to gasoline prices by so I'm creeping up, 553 00:42:32,719 --> 00:42:37,199 back up towards four bucks. That's how to sneaky rally, hasn't it? 554 00:42:37,639 --> 00:42:39,880 Well, it really has. They're just steady almost every single day we 555 00:42:40,000 --> 00:42:45,000 were down in the seventies. Did you hear anything about us putting a buying 556 00:42:45,320 --> 00:42:47,559 a reserves back? No, weld There was a lot of talk about it 557 00:42:47,719 --> 00:42:52,400 and h how much should we do while we were negative? Actually because we 558 00:42:52,480 --> 00:42:54,079 sold more than we bought here, Yeah, the problem had a Now it's 559 00:42:54,159 --> 00:42:58,039 up here. I guess who's got to be buying it to put the keep 560 00:42:58,119 --> 00:43:00,639 the reserves. So we're still selling for a while. At least we're still 561 00:43:00,639 --> 00:43:05,039 selling. The reason we're still selling is there's a congressional mandate back in twenty 562 00:43:05,119 --> 00:43:08,400 eighteen or fifty fifteen said that we have to sell this oil. So it's 563 00:43:08,400 --> 00:43:12,519 already mandated we have to do it. And that's what the Department of Transportation 564 00:43:12,599 --> 00:43:15,880 head of Department Transportations as hardest to buy when you're selling, right, and 565 00:43:16,039 --> 00:43:19,760 that makes sense. Yeah, so we and I think we're selling till the 566 00:43:19,840 --> 00:43:22,639 end of the year. That would have been the greatest trade ever though one 567 00:43:22,679 --> 00:43:24,480 of the greatest trades ever selling out at night when you start to realize all 568 00:43:24,719 --> 00:43:28,840 Biden does. He says things that he's going to do and it never actually 569 00:43:28,920 --> 00:43:30,800 does ever happen. Says things that are good enough for people to get behind 570 00:43:30,880 --> 00:43:34,679 them for the time being. Well, it's easy when it's other people's money. 571 00:43:35,480 --> 00:43:37,320 Yeah, okay, you could say what you're gonna do and lay It's 572 00:43:37,320 --> 00:43:40,880 just like you know, people all you know, all these pundits on TV, 573 00:43:42,360 --> 00:43:44,800 the markets going down, going down, going down, and everyone you 574 00:43:44,880 --> 00:43:46,480 know, if you listen to him in January, February, March, April, 575 00:43:46,559 --> 00:43:51,119 May, June, you're didn't make any money. No, they didn't 576 00:43:51,159 --> 00:43:53,360 tell you how to mitigate the risks. They didn't tell you can still make 577 00:43:53,400 --> 00:43:57,159 some money while the markets gone. They didn't give you options, you know 578 00:43:57,199 --> 00:43:59,800 what I mean. And now the market goes out a little bit and they 579 00:43:59,840 --> 00:44:01,039 think their heroes. Yeah, but I mean, he's a career politician, 580 00:44:01,079 --> 00:44:04,960 So that's just what he's done for his whole career. Say whatever he needs, 581 00:44:05,000 --> 00:44:07,119 getting post, get people behind him, and then do whatever he wants. 582 00:44:07,960 --> 00:44:09,840 It's becoming evidence, especially with Hunter Biden and all that stuff coming out 583 00:44:10,440 --> 00:44:15,920 interest rates more and more coming out of interest rates popping up. Really he 584 00:44:15,000 --> 00:44:19,639 took it really hit goal goal down twenty bucks on the week to nineteen forty. 585 00:44:20,199 --> 00:44:22,320 We know there's an inverse relationship there. How that's an inflation hedge, 586 00:44:22,360 --> 00:44:29,119 I don't know, but um a treasury the difference between the ten year and 587 00:44:29,199 --> 00:44:34,079 the two year narrow todd down to a point seven. The long end of 588 00:44:34,199 --> 00:44:37,039 the curve got a huge bid this week, and uh it was it was 589 00:44:37,119 --> 00:44:40,400 interesting. I know we had a TLT and it just got killed throughout the 590 00:44:40,400 --> 00:44:45,280 week. Rally big on it did it did? We saw the rates drop, 591 00:44:45,440 --> 00:44:47,400 which I don't know why the rates dropped on Friday. Maybe this labor 592 00:44:47,519 --> 00:44:52,360 reporter or something got killed. When jobs number, yeah, we had a 593 00:44:52,440 --> 00:44:54,760 huge jobs number, is why the rates dropped on Friday, right, one 594 00:44:54,880 --> 00:45:00,440 hundred and eighty seven thousand new jobs, which was below expectations, and that 595 00:45:00,639 --> 00:45:02,719 people got investors saying, oh okay, in restrict are done going up. 596 00:45:04,119 --> 00:45:07,400 But look, I mean the best of the people to understand, if we 597 00:45:07,440 --> 00:45:12,079 have unemployment at three point five, you do not have an economy that's going 598 00:45:12,119 --> 00:45:14,639 to really slow down. Everyone has a job, everyone has money to spend. 599 00:45:14,960 --> 00:45:16,199 The only way you get inflation to really come down to two percent. 600 00:45:16,280 --> 00:45:20,480 You need people to lose their jobs. Now, wait till next Thursday when 601 00:45:20,559 --> 00:45:24,679 we get the CPI number for July. That's gonna be really interesting because we've 602 00:45:24,719 --> 00:45:29,840 been benefiting from a plunge in oil prices. Yeah. Now, real estate 603 00:45:29,920 --> 00:45:34,880 has not gone south, rent has not gone south. Uh, oil prices 604 00:45:34,960 --> 00:45:38,440 are going north hard. I'm thinking that that three percent probably is going to 605 00:45:38,519 --> 00:45:43,599 see a tick up, not just time the next month after. No to 606 00:45:43,679 --> 00:45:46,880 beat this month because it's for July, now keeping they're always behind, Dave, 607 00:45:47,760 --> 00:45:51,800 that's I know, but it's it is the CPI report for July, 608 00:45:52,440 --> 00:45:55,360 so and and oil was rising most of the month. Yeah, we'll keep 609 00:45:55,360 --> 00:46:00,559 in mind that the CPI that Jerome Powell really cares about is the CPI. 610 00:46:00,679 --> 00:46:04,559 It's the one without the food and the energy. So he really cares about 611 00:46:04,559 --> 00:46:08,119 his personal consumption, right, which is definitely a whole different number than nobody 612 00:46:08,159 --> 00:46:12,199 talks about it. But like you said, I mean, we homes that 613 00:46:12,239 --> 00:46:15,280 are actively listed are down twenty point eight percent year over year. So when 614 00:46:15,320 --> 00:46:20,960 you have an inventory of just continued declining, the supply to demand dynamics in 615 00:46:21,000 --> 00:46:23,960 the housing market keeps that market going. And then also, like you said, 616 00:46:24,000 --> 00:46:27,440 with the horizon oil prices, it's pretty hard to see that we're going 617 00:46:27,519 --> 00:46:30,280 to see a decline in the headline number. Homes in decent areas still selling 618 00:46:30,400 --> 00:46:37,440 quickly with multiple offers. Yeah, because of inventory. Yeah. Own builder 619 00:46:37,519 --> 00:46:40,920 stocks hitting new all time high. Those concessions are just killing it form by 620 00:46:40,960 --> 00:46:44,760 anything. That's where you have to go, Right's because they were building so 621 00:46:44,840 --> 00:46:47,199 many new home developments for the last couple of years and then it's did they 622 00:46:47,320 --> 00:46:50,440 did die off? But now they're coming back because that's all there is. 623 00:46:50,719 --> 00:46:54,039 Yeah, it's fascinating. The US homeowner vacancy rate dip down to point seven 624 00:46:54,079 --> 00:46:59,880 percent. That's the lowest level since Commerce Department started to even record this STATA 625 00:47:00,159 --> 00:47:02,639 in nineteen fifty six. So, I mean, just there's just no vacant 626 00:47:02,719 --> 00:47:06,760 homes out there, right, everybody you love with their mortgage rate? Yep, 627 00:47:07,320 --> 00:47:10,039 exactly, not so much. We're gonna take a hard break here. 628 00:47:10,079 --> 00:47:15,199 We'll be back to the second hour of the money Matterchell. Remember this is 629 00:47:15,239 --> 00:47:20,079 a very very good time to understand this risk in this market, the economy 630 00:47:20,119 --> 00:47:22,880 and everything going on, especially for the next couple of months. Midta gate 631 00:47:23,159 --> 00:47:28,880 your risk and if you don't understand how to mitigate your risk. Then you 632 00:47:29,000 --> 00:47:30,719 need to plan for it by coming in and seeing us. We'll give you 633 00:47:30,760 --> 00:47:37,559 a free, free, non cost, complimentary financial plan so you can be 634 00:47:37,639 --> 00:47:40,679 on track to do all the things you want to do. Just give us 635 00:47:40,719 --> 00:47:53,159 a call. We'll be right back. Say it's all. Welcome back. 636 00:47:53,199 --> 00:47:57,159 You're listening to the second hour of the Money Matters Show. I'm Dylan Greenberg. 637 00:47:57,199 --> 00:48:00,119 I'm here with Dean Greenberg, Todd Click, and Dave Sherwood. We're 638 00:48:00,159 --> 00:48:02,960 getting got our new advisor on here a little bit later, Sebastian Borsini past 639 00:48:04,079 --> 00:48:07,000 sixty five because a full blown licensed advisor now. So we'll get them on 640 00:48:07,000 --> 00:48:09,679 the radio show talking about some stuff he found throughout the week. But before 641 00:48:09,679 --> 00:48:13,079 we get going on that, we had some numbers for you just tuning in. 642 00:48:13,400 --> 00:48:15,320 The Dow was down one percent, the SMP five hundred was down two 643 00:48:15,360 --> 00:48:19,880 point three percent for the week. In the NAZAC was down two point eight 644 00:48:19,920 --> 00:48:22,559 percent, and the small cap RUSTLE two thousand was down one point one percent. 645 00:48:22,639 --> 00:48:27,199 And then the equal weighted SMP five hundred, which is the RSP, 646 00:48:27,880 --> 00:48:30,800 was down two percent for the week. Something we haven't said it in a 647 00:48:30,920 --> 00:48:35,920 long long time. Down across the board down every day this month. Yep, 648 00:48:37,360 --> 00:48:39,119 we've been expecting it. Yeah, I mean, it's been too much 649 00:48:39,159 --> 00:48:43,920 going on, but it's been The summer rally was huge. We're coming into 650 00:48:44,000 --> 00:48:47,519 a historically bad time of the year. August is up usually slightly, and 651 00:48:47,599 --> 00:48:51,840 then September is usually one of the worst months. So we might see a 652 00:48:51,880 --> 00:48:53,280 little break in this rally that we've been seeing for the last few months. 653 00:48:53,320 --> 00:48:57,639 But the five consecutive months higher, that's pretty durn rare. Well, this 654 00:48:57,880 --> 00:49:01,719 Magnificent seven took a break yea. But Amazon took over and on Friday went 655 00:49:01,800 --> 00:49:06,039 up nine percent because they just blew all the earnings reports out of the water 656 00:49:06,559 --> 00:49:09,920 and their AWS is stab stabilizing and everything like that. So liking, But 657 00:49:10,280 --> 00:49:15,039 for so the month ended what middle of the week, Tuesday, So then 658 00:49:15,039 --> 00:49:17,719 we have some numbers for that too. The Communications ETF, which is XCELC 659 00:49:19,280 --> 00:49:22,519 was up five point seven percent for July. It's up forty four percent for 660 00:49:22,599 --> 00:49:25,519 the year, as leading all the right and we were the communications, of 661 00:49:25,599 --> 00:49:30,880 course is just another technology. It is because it includes meta, it includes 662 00:49:30,920 --> 00:49:32,719 companies like it's stupid. It's stupid, and that's why I stopped so much 663 00:49:32,760 --> 00:49:36,840 but you keep saying stupid. It is stupid, but not when you think 664 00:49:36,880 --> 00:49:39,440 of communications, it's just not ation. Okay, but you're using an arcaic 665 00:49:39,639 --> 00:49:45,440 model, but you're using an arcake commit communications model because that's all you knew. 666 00:49:45,719 --> 00:49:49,039 But communication, how do you communicate at Verie? Well, they're in 667 00:49:49,119 --> 00:49:51,519 there, But the thing is too you need meta in there because they own 668 00:49:51,599 --> 00:49:55,639 WhatsApp, which is a huge communications it's huge, absolutely Facebook. I guess 669 00:49:55,719 --> 00:50:00,320 my point is it's it's redundant, it's it forms in line with the with 670 00:50:00,519 --> 00:50:05,880 the technology ETF. So what's the point. Why not just quit it? 671 00:50:06,039 --> 00:50:08,639 Just cancel it, go back to ten, can't get rid of it. 672 00:50:09,679 --> 00:50:15,639 The next one's technology Technology, which was help forty three point nine percent for 673 00:50:15,719 --> 00:50:17,920 the year, so slightly less. So I think Verizon an eight and T, 674 00:50:19,039 --> 00:50:20,679 which they're be a getting killed this year. So I don't know how 675 00:50:20,719 --> 00:50:22,480 communication is there. They're not they're not doing too much in that ETF. 676 00:50:22,599 --> 00:50:27,320 If they're think in that way, then consumer discretionary, which is interesting, 677 00:50:27,440 --> 00:50:30,320 is up thirty five point two percent for the year. That's the third highest 678 00:50:30,360 --> 00:50:32,239 one, which is interesting. I mean, it's been like we said, 679 00:50:32,280 --> 00:50:35,719 but maybe that's part of the reason the credit card debt keeps going up. 680 00:50:36,000 --> 00:50:37,760 All discretionary means that you know, things that you don't have to have, 681 00:50:37,960 --> 00:50:43,880 and in a period where the economy is weakening, you would see that weakening 682 00:50:44,400 --> 00:50:47,159 exactly. Consumers not thinking the economy's weakening. Yeah, I mean they think 683 00:50:47,199 --> 00:50:50,239 in that. But also, like we've been saying, is credit card debt 684 00:50:50,360 --> 00:50:52,920 is increasing, so you're buying discretionary items on your credit card. And just 685 00:50:53,000 --> 00:50:57,119 leave. Before we leave the SMP, I just wanted to say that the 686 00:50:57,280 --> 00:51:00,000 SMP had a long time where it had over two months without a one percent 687 00:51:00,119 --> 00:51:05,800 drop in a single day, and when that happens, um the SMP has 688 00:51:05,840 --> 00:51:09,039 gained fourteen point eight percent on average one year later since nineteen eighty. So 689 00:51:09,280 --> 00:51:14,719 there's there's some you know, historical data showing that we had some real big 690 00:51:14,840 --> 00:51:17,159 runs even though we had finally have a one percent drop in a single day. 691 00:51:19,239 --> 00:51:25,440 It looks good historic radio change, right right, I deal, the 692 00:51:25,519 --> 00:51:29,840 ones that are lagging are the utilities. They're down three point four percent for 693 00:51:29,880 --> 00:51:31,840 the year, and then healthcare is down point five percent for the year, 694 00:51:31,880 --> 00:51:36,000 and those are the only two that are down. The interesting thing about this 695 00:51:36,079 --> 00:51:39,440 whole thing that we keep track of every month is these SMP sectors. Back 696 00:51:39,480 --> 00:51:44,079 in May, half of them were negative. Now we're at the end of 697 00:51:44,159 --> 00:51:46,880 July only two were negative and one is barely negative. It saw a huge 698 00:51:46,960 --> 00:51:51,159 rally through June and July, just across the board. And you do you 699 00:51:51,239 --> 00:51:55,159 do expect utilities to lagging and writing interest trading environment because they generally have fairly 700 00:51:55,239 --> 00:52:04,119 significant debt YEP. For the Dow Dow, the Dow is CRM has been 701 00:52:04,199 --> 00:52:08,480 leading this charge all year. They're of seventy percent for the year yep, 702 00:52:08,760 --> 00:52:12,239 right, and they lagged it all last years. Just the dogs of the 703 00:52:12,280 --> 00:52:15,679 Dow. That's still staying true. Just like dead lad. They were dead 704 00:52:15,760 --> 00:52:17,920 last, lad, if I remember now they are running away with it. 705 00:52:19,199 --> 00:52:22,519 Walgreen's boots ALIAS. They're dead last this year, the down eighteen percent. 706 00:52:22,599 --> 00:52:24,320 So if you're going with the theory of dogs of the doo and they're down 707 00:52:24,360 --> 00:52:28,559 at the end of the year, you'll see them jump next year. That's 708 00:52:28,599 --> 00:52:31,360 just how That's what the dogs of the Doo means. Walgreens and Walgreens and 709 00:52:31,480 --> 00:52:37,199 CVS. Walgreen is of course the worst performing stock in the Dow. CVS 710 00:52:37,199 --> 00:52:42,559 doing just as badly. H the store traffic is waning because of COVID. 711 00:52:42,719 --> 00:52:45,920 You know, they both gained some ground on Wednesday after CBS reported better than 712 00:52:45,960 --> 00:52:52,159 the expected results. Both stocks trade with single digit pees, so it was 713 00:52:52,239 --> 00:52:55,880 just ridiculously low, less than half of what the overall market normally is, 714 00:52:57,199 --> 00:53:00,960 about a third of what the overall market is now. The CBS dividend is 715 00:53:01,039 --> 00:53:05,719 three percent, the Walgreens dividend is six percent. So you look at these 716 00:53:05,800 --> 00:53:09,079 and go single digit pees with high dividends, why how to look at those? 717 00:53:09,239 --> 00:53:15,800 Right? One problem Neither of those companies are making enough income to cover 718 00:53:15,920 --> 00:53:20,199 the dividend. Neither of those companies that have enough net income to cover the 719 00:53:20,320 --> 00:53:22,840 dividend payout. So the dividend, which is going to hold you up right, 720 00:53:23,440 --> 00:53:27,719 is just as safe as the next board meeting. Wow. So I 721 00:53:27,800 --> 00:53:30,800 think that's one of the things that maybe weighing on those two companies is the 722 00:53:30,920 --> 00:53:34,840 thought that the dividend might have to be cut. You see Carl Icon's company, 723 00:53:35,119 --> 00:53:38,039 their congomerate, cut their dividend in half on Friday at their earnings report 724 00:53:38,119 --> 00:53:42,719 call, and their stockshout twenty three percent, which I mean they have a 725 00:53:42,760 --> 00:53:45,480 thirty one percent dividend, So it makes sense that they cut it. Yeah, 726 00:53:45,519 --> 00:53:46,320 I was wondering. We looked at it a couple of weeks ago and 727 00:53:46,360 --> 00:53:49,920 it was that high. We're wondering why, And I guess they were too, 728 00:53:49,960 --> 00:53:52,320 because they cut it in a half. Well, you know what it 729 00:53:52,440 --> 00:53:55,679 could have been is when that that activists came out and was trying to mess 730 00:53:55,760 --> 00:54:00,719 with icon enterprises. Maybe what they did is raised the it and to keep 731 00:54:00,800 --> 00:54:06,880 investors around to you know, compensate for that extra level of risk. And 732 00:54:07,039 --> 00:54:08,800 now that it's kind of that's gone away. It's weird. Though it was 733 00:54:08,960 --> 00:54:14,519 constantly growing for the last fifteen years, the dividend or nothing astronomical like. 734 00:54:14,599 --> 00:54:16,719 There wasn't a jump like that from what I saw. Interesting, it was 735 00:54:16,760 --> 00:54:22,039 a battle of titans when the short seller went after I can it wass You 736 00:54:22,119 --> 00:54:25,280 know, we've we've been talking about the equal weighted for a while on this 737 00:54:25,400 --> 00:54:30,760 show, and right now there's never been a bigger divergence between the SMP five 738 00:54:30,880 --> 00:54:35,840 hundred and the equal weighted SMP five hundred, meaning the performance between the two. 739 00:54:36,159 --> 00:54:38,840 The last time we've seen this big of divergence it happened back in twenty 740 00:54:38,920 --> 00:54:44,360 twenty, and the subsequent rotation was huge. What I mean by that is 741 00:54:44,440 --> 00:54:50,320 the S ANDP equal weighted SMP outperformed the regular SMP by a lot following that 742 00:54:51,199 --> 00:54:55,480 divergence. So we could see that the the smaller names in the SMP start 743 00:54:55,559 --> 00:55:00,719 to perform better overall than the bigger names because the bigger names have just absolutely 744 00:55:00,800 --> 00:55:04,719 killed it. I mean the seven Magnificent seven that we've talked about that they 745 00:55:04,760 --> 00:55:07,239 make up now thirty percent of the SMP five hundred, Right, that's a 746 00:55:07,360 --> 00:55:10,360 lot of risk that you when you invest in the SP five hundred, now 747 00:55:10,360 --> 00:55:13,880 you're thirty percent of it's going to just seven companies. Yeah, I mean 748 00:55:14,320 --> 00:55:16,079 SP five hundred is up seventeen percent for the year, and the RSP is 749 00:55:16,119 --> 00:55:20,880 up seven percent. So the SMP five hundred with the weights is up temple 750 00:55:21,000 --> 00:55:23,159 more percent and that's due to the magn If it's in seven just killing it. 751 00:55:23,400 --> 00:55:27,320 So behind three months ago, what index did you not want to have 752 00:55:27,480 --> 00:55:30,079 anything to do with the doll right, right? And for the last three 753 00:55:30,159 --> 00:55:34,440 months it's led the way it has and it's still but that's the only up 754 00:55:34,440 --> 00:55:37,400 six percent for the year. I think it's just more an indicator of you 755 00:55:37,480 --> 00:55:40,719 want to look for things that are out of favor, you start chasing the 756 00:55:40,800 --> 00:55:45,199 things that are in favor, that the Apples and the Amazons and the in 757 00:55:45,360 --> 00:55:47,519 videos. You're not gonna want to do that. You want to look behind 758 00:55:47,599 --> 00:55:52,599 the rocks and under the trees and for the high quality companies that have just 759 00:55:52,679 --> 00:55:54,800 been ignored. There. We will be buying opportunities for companies like that, 760 00:55:54,960 --> 00:55:57,960 like in Vidio, Microsoft. I mean, they're not going to run up 761 00:55:58,000 --> 00:56:00,119 forever. They're gonna have pullbacks like we've seen the last couple of weeks, 762 00:56:00,320 --> 00:56:02,840 and there will be time to get into But it's not a it's not a 763 00:56:02,960 --> 00:56:07,239 full one hundred percent jump in it's but if you want to get your feet 764 00:56:07,239 --> 00:56:09,039 well with it, there will be opportunities to start building a position. Right, 765 00:56:10,000 --> 00:56:13,679 Apple drop six percent on Friday, so yeah, I mean last week 766 00:56:14,000 --> 00:56:16,400 we bought some Microsoft for clients when they had their big drop from learnings. 767 00:56:16,920 --> 00:56:21,119 Just different times to buy in, right, it will be too don't be 768 00:56:21,239 --> 00:56:23,519 too quick to act though. If the market is due for a pullback and 769 00:56:23,599 --> 00:56:27,519 it needs a pullback of five to ten percent, I think we've had a 770 00:56:27,559 --> 00:56:30,840 pullback. What are we off at the highs of two and a half percent 771 00:56:31,000 --> 00:56:37,000 something like that. It's not like, yeah, two point eight percent off. 772 00:56:37,119 --> 00:56:40,320 What's your favorite UM stock that hasn't been talked about? For me, 773 00:56:40,519 --> 00:56:45,519 I'm kind of I like Starbucks. Well, Starbucks is a great name. 774 00:56:45,639 --> 00:56:50,000 Yeah, that's a great name, and they're they're exposure to China, and 775 00:56:50,239 --> 00:56:57,079 you know, that's that's another um bit of of false information or ums misinformation 776 00:56:57,159 --> 00:57:00,400 we've given on the show. Um is that is their number one customers. 777 00:57:00,480 --> 00:57:05,360 Not I was looking through some data and the US is still the number one 778 00:57:05,440 --> 00:57:08,840 customer. Well we read that. The reason is we were fastest growing. 779 00:57:09,320 --> 00:57:13,360 That's why it kind of got misconstrued that way. This now that it became 780 00:57:13,440 --> 00:57:16,599 the fastest growing country. They now build a new Starbucks every nine hours in 781 00:57:16,679 --> 00:57:20,719 China and it's every twelve hours in the US. Well, that doesn't mean 782 00:57:20,960 --> 00:57:23,320 China was always building one every nine hours. They just overtook the US as 783 00:57:23,360 --> 00:57:29,480 the fastest growing Starbucks area. Got it. So every every week now seems 784 00:57:29,519 --> 00:57:32,840 like I have a little EV story. So I ended up have like a 785 00:57:32,960 --> 00:57:36,679 come up with a little name like Dave's EV Corner or something like that. 786 00:57:36,880 --> 00:57:38,719 You know. Um, hey, so this week I'm gonna talk a little 787 00:57:38,719 --> 00:57:42,920 bit about you know, we know that range is a problem. My friend 788 00:57:43,000 --> 00:57:47,079 Mike shared an article that Toyota has come up with a solid state battery that 789 00:57:47,239 --> 00:57:52,360 has a range of seven hundred and fifty miles and we'll we're charging in ten 790 00:57:52,400 --> 00:57:55,559 minutes. That's an absolute game changer. They expect it to be available in 791 00:57:55,639 --> 00:58:00,719 twenty twenty five. Toyota, of course, is the world's large just carmaker, 792 00:58:00,840 --> 00:58:05,360 and up until recently they pretty much have been favoring hybrid. Haven'ts talked 793 00:58:05,400 --> 00:58:07,559 a lot about electric, They stayed away from it. Yep. April of 794 00:58:07,639 --> 00:58:12,320 this year, a guy by the name of Koji Sato became the CEO of 795 00:58:12,400 --> 00:58:15,599 Toyota, and they're going all electric. They're going all in. He said, 796 00:58:15,639 --> 00:58:19,599 the hybrid is not the way to go electric. And I'm not arguing 797 00:58:19,719 --> 00:58:22,320 hybrid electric. I'm just saying what Toyoda is saying. Toyota has been hybrid 798 00:58:22,400 --> 00:58:25,119 the whole way. They've been very that's interesting. Yeah, brand new CEO 799 00:58:25,159 --> 00:58:28,880 all of a sudden, the go one hundred percent electric CEO. Last year 800 00:58:29,000 --> 00:58:30,840 they were one hundred percent against electric. They said it's not the way right 801 00:58:30,920 --> 00:58:34,880 now. Hybrid is the first step in doing that right And the guy that 802 00:58:35,000 --> 00:58:38,159 he replaced was one was a relative of the founder of Toyota, and he's 803 00:58:38,199 --> 00:58:42,280 gone now. And this new guy is on as of April of twenty three 804 00:58:42,400 --> 00:58:45,519 any relevant And he's he's, he's And are they part of the family or 805 00:58:45,599 --> 00:58:49,719 is he just a new new this is a non family member and he's he 806 00:58:49,800 --> 00:58:53,760 says we're going electric. Interesting And again that's a major change for for Toyota. 807 00:58:54,079 --> 00:58:57,960 And you know, I have a most you know, I have a 808 00:58:58,039 --> 00:59:00,840 Tesla and I had for about thirty days. I'm brand new to it. 809 00:59:01,159 --> 00:59:06,039 And uh, you know, the Tesla's kind of like Trump. You either 810 00:59:06,199 --> 00:59:08,559 love it or you love to hate it. Right, And I said, 811 00:59:08,599 --> 00:59:12,719 there was a story last week about this seventy four year old guy in Phoenix 812 00:59:12,760 --> 00:59:15,639 who got stuck in his Tesla and couldn't get out and almost died. You 813 00:59:15,719 --> 00:59:19,719 know, his battery had gone. Dad, And I saw a tesla that 814 00:59:20,119 --> 00:59:24,840 um got it hit the curb, went over someone's wall, went through the 815 00:59:24,920 --> 00:59:29,119 wall, and then landed in someone's pool. Well, let me finish it, 816 00:59:29,239 --> 00:59:30,880 seventy four year old guy. Right, the seventy four year guy supposedly 817 00:59:30,960 --> 00:59:35,599 locked in his car because his battery went Dad couldn't get out nearly died because 818 00:59:35,599 --> 00:59:38,800 of the heat. There's a there's a manual door handle right next year, 819 00:59:38,880 --> 00:59:43,800 left arm. So that's just stupid. That's just the stupid jury. So 820 00:59:44,239 --> 00:59:45,320 and there's lots of those, because, like I say, you either love 821 00:59:45,360 --> 00:59:47,840 it or you love to hate it. And then those that love it are 822 00:59:47,880 --> 00:59:51,000 talking about, oh yeah, I have no problem. I could drive to 823 00:59:51,119 --> 00:59:53,159 la you know, No you can't. You gotta stop, stop, stop. 824 00:59:54,280 --> 00:59:59,960 So I'm neither of those. I got it because I wanted to expire 825 01:00:00,360 --> 01:00:07,679 something different in the final hours of my life, you know. And and 826 01:00:07,800 --> 01:00:10,119 it's it's great. It's great fun. You know, it's great fun. 827 01:00:10,440 --> 01:00:14,360 I'm not a lover. I'm not a hater. I see there are definitely 828 01:00:14,440 --> 01:00:17,239 problems, but it's it's pretty darn cool. Um. You know. I 829 01:00:17,440 --> 01:00:22,199 leased it though, because I remember in nineteen eighty nine, I owned a 830 01:00:22,320 --> 01:00:29,480 Mercedes and Lexus came out and the price of that Mercedes dropped forty percent in 831 01:00:29,519 --> 01:00:34,519 a week because everybody wanted the Lexus. And I'll tell you now, if 832 01:00:34,559 --> 01:00:37,440 you're if you're if you're the owner of electric car company. And Toyota comes 833 01:00:37,480 --> 01:00:42,920 out with a nice looking SUV that can do seven hundred and fifty miles and 834 01:00:43,000 --> 01:00:45,800 recharge in ten minutes. You're gonna want it. Toyota might come out with 835 01:00:45,800 --> 01:00:49,719 a more affordable electric car two like they did with the Prius. Yeah. 836 01:00:50,000 --> 01:00:52,639 Yeah, And if they come out with that, I think Tesla stock will 837 01:00:52,679 --> 01:00:55,440 get cut, probably twenty five percent. But it is funny. In thirty 838 01:00:55,519 --> 01:01:01,239 days, I have had so much love and so many horror stories. It's 839 01:01:01,280 --> 01:01:06,159 just it's like Trump, you either love them or you love to hate them. 840 01:01:06,400 --> 01:01:09,079 And that's the way it is with Tesla. Uh, It's it's crazy. 841 01:01:09,559 --> 01:01:15,920 They now have a lawsuit filed against them last week by three consumers in 842 01:01:15,039 --> 01:01:22,360 California, because we all know that the mileage that is advertised is not achievable. 843 01:01:22,639 --> 01:01:27,400 It's if you can get sixty percent sixty seventy percent of what they say 844 01:01:27,480 --> 01:01:30,119 you can get, that's pretty good, and up till now we just kind 845 01:01:30,119 --> 01:01:31,639 of all say, yeah, well, we all know that it can't go 846 01:01:31,800 --> 01:01:36,639 that far. But these guys said, hey, this is false advertising. 847 01:01:37,199 --> 01:01:39,800 You wouldn't have been able to sell the cards without it, and or you 848 01:01:39,840 --> 01:01:44,320 would have had to sell them cheaper. So they filed a suit, which 849 01:01:44,400 --> 01:01:47,480 they hope will be a class actional lawsuit against Tesla for their mileage claims. 850 01:01:47,519 --> 01:01:52,519 Now the problem with that as I see it, and I give the credit 851 01:01:52,599 --> 01:01:55,199 to Ron, our our listener, Ron, who said, yeah, but 852 01:01:55,360 --> 01:02:01,920 it's not Tesla who sets the mileage ratings, it's the EPA. So it's 853 01:02:02,159 --> 01:02:06,480 they're really suing the wrong person. Don't you think they probably ought to be 854 01:02:06,519 --> 01:02:09,360 suing the EPA as opposed to Tesla. We all know Tesla's mileage claims our 855 01:02:09,599 --> 01:02:15,840 our joke, but they don't send him the APA does Did they trick the 856 01:02:15,880 --> 01:02:21,400 EPA? I don't know. Maybe who? All right, Welcome Sebastan, 857 01:02:21,639 --> 01:02:24,480 our newest advisor, Sebastian Borsini. He has a little bit of information on 858 01:02:24,760 --> 01:02:28,400 a new thing coming out. It's a new provision coming out in twenty twenty 859 01:02:28,440 --> 01:02:30,920 four that has to do with the five twenty nine plans. If they're is 860 01:02:31,039 --> 01:02:35,000 unused money in there? What you got Sea Bass so I was doing. 861 01:02:35,039 --> 01:02:37,679 That's his nickname too, by the way, Yeah Bass, My name is 862 01:02:37,679 --> 01:02:42,599 Sebastian Borsini. Some people do call me Sea Bass. I just graduated from 863 01:02:43,199 --> 01:02:45,880 I was born, born and raised here in Tucson, Arizona. Just graduated 864 01:02:45,920 --> 01:02:49,400 from the University of Arizona. UM. What Todd might argue is not the 865 01:02:49,480 --> 01:02:52,079 best college in the state Gold Devils. Yeah, everybody knows that he doesn't 866 01:02:52,079 --> 01:02:57,719 like Arizona graduated with an economics degree. I got a little bit of background 867 01:02:57,719 --> 01:03:00,039 about a five two nine plan. Uh, five two nine plan is not 868 01:03:00,079 --> 01:03:07,639 a retirements account, but rather as savings a vehicle designed to meet future educational 869 01:03:07,719 --> 01:03:10,199 expenses. These there's many benefits of having a five two nine plan, a 870 01:03:10,239 --> 01:03:15,920 few of which include tax breaks. Contributions are made with after tax dollars and 871 01:03:15,039 --> 01:03:21,480 any earnings grow tax deferred qualified withdraws that are used for these educational purposes or 872 01:03:21,599 --> 01:03:25,199 tax free and five two nine plants have also have higher contribution limits than other 873 01:03:25,239 --> 01:03:30,880 accounts. So when we saw a different provision come out right, where in 874 01:03:31,000 --> 01:03:37,639 twenty twenty four, we're gonna have a different tax implication that gets assessed to 875 01:03:37,679 --> 01:03:42,760 these five twenty nine's correct? Yes, correct? So what does that look 876 01:03:42,800 --> 01:03:45,760 like? So this is going to be adopted in twenty twenty four. This 877 01:03:45,840 --> 01:03:49,719 will allow you to roll unused money from the five two nine plan into a 878 01:03:49,800 --> 01:03:52,360 roth IRA. Yeah, but with that rolling it into the plan, you 879 01:03:52,480 --> 01:03:58,440 have to it's the annual maximum contribution, correct, correct? So you do 880 01:03:58,599 --> 01:04:00,840 have two attests. So like if you have one hundred thousand dollars in the 881 01:04:00,880 --> 01:04:02,599 five twenty nine plant, you can't roll that all over at once. Correct. 882 01:04:02,679 --> 01:04:05,679 You still have to adhere to the YEP and then what was the max 883 01:04:06,280 --> 01:04:11,159 and the max lifetime contribution. That's the most you can roll over from a 884 01:04:11,159 --> 01:04:15,920 five twenty nine plant into the roth Eyre correct. So that's going to be 885 01:04:15,000 --> 01:04:17,800 extremely beneficial to get use out of the money if it's just sitting there, 886 01:04:18,280 --> 01:04:23,000 which a lot of the time. If if you're parents and you've had a 887 01:04:23,079 --> 01:04:26,800 kid and you set up this, you set up this you know, five 888 01:04:26,880 --> 01:04:29,880 two nine plan, and your kid ends up not going to college or they 889 01:04:30,000 --> 01:04:33,800 end up getting a scholarship scholarship like did um, this just gives you the 890 01:04:33,880 --> 01:04:39,199 opportunity to not take a tax hit because you will have a ten percent hit 891 01:04:39,800 --> 01:04:45,920 if if you take out for other than if you have a if you have 892 01:04:45,159 --> 01:04:48,320 one kid and they end up getting a scholarship or decided to go started to 893 01:04:48,400 --> 01:04:53,159 work in you get at least they can get benefit out of this exactly. 894 01:04:53,280 --> 01:04:56,000 Let's say, for example, you've accumulated a five to twenty nine that has 895 01:04:56,039 --> 01:04:59,559 fifty thousand dollars, your kid ends up being a superstar does not need any 896 01:04:59,599 --> 01:05:01,400 of it. Well, guess what, you can only roll thirty five thousand 897 01:05:01,480 --> 01:05:05,000 of that fifty thousand into a roth ira. The new roth iras are going 898 01:05:05,079 --> 01:05:09,199 to be in the name of the kid or the parent. It'll be rolled 899 01:05:09,239 --> 01:05:11,719 over into the name of the kid. The beneficiary was on the five two 900 01:05:11,840 --> 01:05:15,199 nine. The reason that's so big is because now that kid can use that 901 01:05:15,480 --> 01:05:20,000 out of the roth ira for things like qualified expenses, meeting house, first 902 01:05:20,039 --> 01:05:23,920 time home buyers. Yeah, and then they can also they'll be able to 903 01:05:23,960 --> 01:05:27,360 take out any contributions that were in it, Whereas if it's just stuck into 904 01:05:27,400 --> 01:05:30,800 five twenty nine and they try to take out for a house that's not gonna 905 01:05:30,840 --> 01:05:32,960 work, you're gonna get charged ten percent tax penalty. So in the past 906 01:05:33,039 --> 01:05:36,480 and until the end of this year, up until twenty twenty four, you'd 907 01:05:36,519 --> 01:05:40,239 really had you're very limited on the options on what you could do with that 908 01:05:40,320 --> 01:05:43,440 account. If your kid decided not to go to college or have a scholarship, 909 01:05:43,559 --> 01:05:45,360 it was pretty much just pass it down to another kid. You're able 910 01:05:45,400 --> 01:05:49,119 to transfer the counts into another beneficiary. If you don't have another kid, 911 01:05:49,199 --> 01:05:53,920 then it's kind of just sat there and you probably just let let it sit 912 01:05:53,960 --> 01:05:57,480 in the accounts to avoid that ten percent tax penalty. Yeah. A couple 913 01:05:57,559 --> 01:06:00,159 other things with the five to nine plan if you are looking to do it, 914 01:06:00,400 --> 01:06:02,840 is that you can have up to seventeen thousand dollars. There's no limits 915 01:06:02,880 --> 01:06:05,639 on the contribution you can do in a five twenty nine plan, but there 916 01:06:05,719 --> 01:06:10,599 is a seventeen thousand dollar contribution limit in the sense of a gift, and 917 01:06:10,760 --> 01:06:13,079 you can do that. Say you're married, you can do your husband and 918 01:06:13,119 --> 01:06:15,039 wife can boast do that. So it can be thirty four thousand dollars gifted 919 01:06:15,119 --> 01:06:17,400 each year for it. Well, that's the max for that, but there 920 01:06:17,519 --> 01:06:20,320 is no contribution limit. You also want to keep in mind that in a 921 01:06:20,400 --> 01:06:25,920 roth IRA you have a multitude more of investment options than you do in a 922 01:06:25,960 --> 01:06:29,679 five twenty nine plan. And so when it comes to places where we are 923 01:06:29,719 --> 01:06:31,880 in the markets right now, when you're there time where we need to be 924 01:06:31,960 --> 01:06:35,599 mitigating risk right you can't really be doing that in a five twenty nine there's 925 01:06:35,599 --> 01:06:39,599 not many options. It's really just mutual funds. So when you can roll 926 01:06:39,679 --> 01:06:42,119 that into a roth ira, even if the kid doesn't need it now, 927 01:06:42,599 --> 01:06:45,440 it can still be managed better than what it otherwise. And this is also 928 01:06:45,480 --> 01:06:47,800 if the five twenty nine plan has to be open for at least fifteen years 929 01:06:48,000 --> 01:06:51,960 for this for you to be able to roll any money over into the roth 930 01:06:53,039 --> 01:06:56,480 Ira. So a lot of time now and what we suggest a lot of 931 01:06:56,519 --> 01:06:59,519 the time is just open and brain. If you don't already have a roth 932 01:06:59,599 --> 01:07:01,960 Ira, open a roth Ira in your name when your kid is young, 933 01:07:02,559 --> 01:07:05,519 grow it that way, because then you still can take out that money that 934 01:07:05,639 --> 01:07:10,519 principle and use it for college expenses without any penalties, without any taxes because 935 01:07:10,519 --> 01:07:13,000 you already paid the money on the taxes. But then if they end up 936 01:07:13,000 --> 01:07:16,400 getting a scholarship, then you end up having the roth Ira money go ahead, 937 01:07:16,480 --> 01:07:18,480 right, I mean, I mean if you compare that to just opening 938 01:07:18,559 --> 01:07:21,679 up a regular brokerage account and growing the money for the kid each year, 939 01:07:21,679 --> 01:07:25,679 you're paying capital gains, whereas if you have it in a roth yeah, 940 01:07:25,719 --> 01:07:30,039 you pay taxes still, but you have tax deferred growth. Right, And 941 01:07:30,159 --> 01:07:31,400 when you take the money out, you're not going to be assessed an extra 942 01:07:31,480 --> 01:07:35,880 penalty because it's used for qualified education expenses. So your kid can take advantage 943 01:07:35,920 --> 01:07:39,880 of tax deferred growth. While you're not going to get that in a brokerage 944 01:07:39,880 --> 01:07:42,360 account. And say you have a kid that's sixteen years old and just started 945 01:07:42,440 --> 01:07:45,400 working and they make sixty five hundred dollars a year, you can contribute in 946 01:07:45,519 --> 01:07:50,000 their name sixty five hundred dollars into their roth IRA for them because they're working. 947 01:07:50,039 --> 01:07:53,559 They made the max. That's a max for the twenty twenty three. 948 01:07:53,679 --> 01:07:56,840 But it's a good way to start getting your kid and interested in investing. 949 01:07:57,280 --> 01:08:00,800 Also, the Financial Plan helps a lot of parents that we mean, dyllancye 950 01:08:01,559 --> 01:08:06,039 really understand how and where they need to be putting money, how much money 951 01:08:06,199 --> 01:08:11,840 where right. There's a lot of different investment options. But also inflation is 952 01:08:11,880 --> 01:08:15,760 a hard thing to calculate, right, and most people don't realize that. 953 01:08:15,159 --> 01:08:19,600 You know, college expense inflations around six percent a year. It's not a 954 01:08:19,720 --> 01:08:25,119 normal inflation rate. Right. So if if we're planning to plan for college 955 01:08:25,159 --> 01:08:28,640 expenses for someone who's two years old, and then we got sixteen years of 956 01:08:28,720 --> 01:08:31,720 growth at six percent a year, imagine what that cost is going to be. 957 01:08:32,159 --> 01:08:34,439 We can show you that in the Financial Plan. Not only that, 958 01:08:34,560 --> 01:08:40,359 we can show you how putting money away growing at an average rate of return 959 01:08:40,640 --> 01:08:45,079 will lead to you either being able to satisfy some all of that college expense 960 01:08:45,439 --> 01:08:47,760 or maybe it's not doable, because then it puts yourself in a bad scenario 961 01:08:47,840 --> 01:08:51,680 for retirement. I think a lot of parents have this goal of funding their 962 01:08:51,760 --> 01:08:55,920 kids expenses for college, which is a great noble goal, but if it 963 01:08:56,000 --> 01:09:00,279 means you not having a retirement, it needs to be considered right. And 964 01:09:00,359 --> 01:09:01,680 that's that one thing where the plan is we can kind of jump to the 965 01:09:01,800 --> 01:09:05,279 future, not perfectly, but we can get a fuzzy picture what the future 966 01:09:05,279 --> 01:09:09,359 will look like if you make this decision now or if you don't. That's 967 01:09:09,399 --> 01:09:12,319 where the financial plan adds a lot of benefit for people. Yeah, if 968 01:09:12,319 --> 01:09:14,880 any of this interest you, If you have any questions on the roth IRA 969 01:09:15,119 --> 01:09:17,439 or the future five twenty nine rollover, or you want to look at what 970 01:09:17,600 --> 01:09:21,399 the roth IRA contributions for you, your kid and anything would impact your financial 971 01:09:21,479 --> 01:09:25,039 situation, just give us a call. We'd be happy to sit down and 972 01:09:25,199 --> 01:09:28,199 go through the financial plan. Like we've always said, it's free. There's 973 01:09:28,199 --> 01:09:30,920 no obligation to you. We give you the whole financial plan after the meeting. 974 01:09:31,079 --> 01:09:33,520 It's not something you have to do businesses with us in order to get 975 01:09:33,560 --> 01:09:36,039 the financial plan. It's all yours. We just want to be here to 976 01:09:36,159 --> 01:09:41,560 help you understand what the best best path is for you going into and as 977 01:09:41,640 --> 01:09:45,239 these new provisions get issued, as they come into effect our financial planning software. 978 01:09:46,079 --> 01:09:50,359 They have a great team they implement into the background, meaning the model 979 01:09:50,760 --> 01:09:55,239 that the financial plan uses for their calculations. If tax has changed, they 980 01:09:55,359 --> 01:09:59,520 updated immediately. If there's a new contribution limit for an IRA, they updated 981 01:09:59,560 --> 01:10:02,359 immediately. Because all those impact your financial plan, right so they're able to 982 01:10:02,479 --> 01:10:08,439 imp changing on the backside where we work on the front side showing the clients 983 01:10:08,479 --> 01:10:13,640 the real accurate numbers even when there's ever changing rules every single year. A 984 01:10:13,880 --> 01:10:15,840 big thing with this financial plan too is what we take into account is the 985 01:10:15,920 --> 01:10:19,920 risk tolerance and right now. And that's always the biggest issue that we find 986 01:10:20,079 --> 01:10:23,800 is when it's right now. When the markets were growing up all summer, 987 01:10:23,880 --> 01:10:25,920 not a big issue. But last year when the markets were going down, 988 01:10:26,159 --> 01:10:29,279 that was a huge issue because people thought their risk tolerance was higher than it 989 01:10:29,479 --> 01:10:31,039 is and then all of a sudden the markets were down every which way, 990 01:10:31,159 --> 01:10:34,359 bomb market, stock market, and the rist tolerance the found out real quick 991 01:10:34,439 --> 01:10:36,640 wasn't where they thought it was. They wanted to be more conservative, but 992 01:10:36,640 --> 01:10:42,399 they didn't know how to rebalance their portfolio in an effective manner. So now 993 01:10:42,840 --> 01:10:45,520 what we want to try and get is the idea of get your risk tolerance 994 01:10:45,560 --> 01:10:48,640 in line before it's too late, before we have to scramble to try and 995 01:10:48,720 --> 01:10:53,000 fix anything. And that's also that's part of the financial plan, that's part 996 01:10:53,000 --> 01:10:56,119 of everything that we do, and that's a big way we build portfolios here, 997 01:10:56,159 --> 01:10:59,239 for the retirement planning, for investing, all of that is based around 998 01:10:59,239 --> 01:11:00,960 the risk tolerance. At the end of the day, if you're in line 999 01:11:00,960 --> 01:11:03,880 with your risk to allerants, if your portfolio ways, then you can sleep 1000 01:11:03,920 --> 01:11:06,199 at night more so than if it's not. Yeah, it's funny because we 1001 01:11:06,199 --> 01:11:10,039 always, i mean people are always asking us when are you most busy when 1002 01:11:10,039 --> 01:11:12,600 the markets are up or when the markets down? It's like, well, 1003 01:11:12,840 --> 01:11:15,560 normally when the markets are down, but it should be the opposite, because 1004 01:11:15,600 --> 01:11:17,039 when the markets are up, that's when you should be mitigating risk. That's 1005 01:11:17,039 --> 01:11:20,399 when you should be looking at is my money manager really doing everything they can 1006 01:11:20,439 --> 01:11:26,840 do to mitigate risk. Obviously, anyone can buy stocks and when am I 1007 01:11:27,640 --> 01:11:30,239 ride the wave up right, anyone can just buy stocks and throw a dart 1008 01:11:30,279 --> 01:11:33,159 and be lucky. The thing that makes a real money manager good at its 1009 01:11:33,279 --> 01:11:36,880 job is being able to mitigate risk or being ahead of the eight ball right, 1010 01:11:38,239 --> 01:11:42,119 maneuver the rocky markets right. And it's not something you should always get 1011 01:11:42,119 --> 01:11:44,760 a second opinion right, You go to a doctor for a second opinion, 1012 01:11:44,840 --> 01:11:46,479 get a second pinion in your portfolio while markets are high, because when the 1013 01:11:46,520 --> 01:11:48,880 markets have already crashed, there's nothing you can go back in time and do. 1014 01:11:49,119 --> 01:11:53,439 I've been doing this for forty one years, and normally in the summertime, 1015 01:11:53,520 --> 01:11:58,840 anyone that can leaves does leaves, So it gets kind of quiet. 1016 01:11:59,439 --> 01:12:02,760 There's nothing quiet about what's going on in this office that you're seeing people. 1017 01:12:03,079 --> 01:12:08,760 They're referring family, they're referring friends. If you haven't gotten your free financial 1018 01:12:08,880 --> 01:12:13,439 plan from Greenberg Financial, give us a call. We'll be happy to help 1019 01:12:13,520 --> 01:12:16,600 him. We'll be back right up to spreak. Thanks Sea Baths your debut. 1020 01:12:16,800 --> 01:12:25,520 Happy to be here, say it's a welcome back. Thanks for joining 1021 01:12:25,680 --> 01:12:29,760 us on the Sunday Morning Where the Money Matters Show. I'm Dave with Dean 1022 01:12:30,039 --> 01:12:32,560 with Dodd with Dylan we're here to bring you the money Matter show. We 1023 01:12:32,600 --> 01:12:38,640 thank Sebastian or Sea Baths or helping us out with his little debut. Did 1024 01:12:38,720 --> 01:12:41,880 a good job, and we appreciate him. Being around radio could be nerve 1025 01:12:42,000 --> 01:12:45,159 racking the first time. You're remember nervous five years ago when I first got 1026 01:12:45,239 --> 01:12:47,840 on, I was so nervous. Yeah, but it gets easier when you 1027 01:12:47,920 --> 01:12:51,079 do it every week. Yeah. You forget that anyone's listening, and you 1028 01:12:51,199 --> 01:12:54,720 just we're just sitting here talking amongst friends. Right. Oh. That was 1029 01:12:54,760 --> 01:12:57,600 the biggest thing for me was I was talking to a mic and nobody's paying 1030 01:12:57,600 --> 01:13:00,039 attention to me in the studio, and I had to do kind of what 1031 01:13:00,119 --> 01:13:02,159 Sebastian just did. And I was talking and I stopped, and at one 1032 01:13:02,199 --> 01:13:05,399 point I stopped, nobody was going to talk to me, and I realized 1033 01:13:05,600 --> 01:13:09,119 I was just a dead air for about ten seconds, and I was like, 1034 01:13:09,199 --> 01:13:12,640 oh man, I gotta keep talking. That was like the eye opening 1035 01:13:12,720 --> 01:13:15,560 part of it. It had an interesting Uh you know, I've lived here 1036 01:13:15,600 --> 01:13:21,239 a long time and water is an issue in the desert. No surprise there, 1037 01:13:21,359 --> 01:13:26,439 right, according to online realty firm checked this out Toad. According to 1038 01:13:26,520 --> 01:13:31,760 Online Realty firm Redfin, twenty five percent of people living in coastal communities are 1039 01:13:31,840 --> 01:13:36,640 looking to relocate. Twenty five percent, Wow, people living in coastal communities 1040 01:13:36,640 --> 01:13:42,760 are looking to row. That's the highest percentage ever. What's so bad about 1041 01:13:42,760 --> 01:13:47,399 the coast in history? That's where the people are so crowded. You know, 1042 01:13:47,479 --> 01:13:49,920 everybody like I want to live on the coast. The problem is your 1043 01:13:50,000 --> 01:13:56,680 elbow to elbow anyway. Number one destination for these people in their dreams Vegas. 1044 01:13:57,560 --> 01:14:00,760 Number two. Number two destinations Phoenix. And as I heard that, 1045 01:14:01,000 --> 01:14:04,840 my only thought was where do we get the water? Right? Right now? 1046 01:14:04,960 --> 01:14:11,880 Desalinization plants to me appear to be the only solution. California is closed 1047 01:14:13,199 --> 01:14:16,800 with their environmentalist to getting anything done there. But we need a pipeline to 1048 01:14:16,880 --> 01:14:25,399 bring water from the ocean to Arizona, and an Israeli company called ide is 1049 01:14:25,720 --> 01:14:29,439 doing just that. They're working with Goldman Sachs. They've asked the state of 1050 01:14:29,479 --> 01:14:32,680 Arizona to sign an agreement to buy water from them for a hundred years. 1051 01:14:34,439 --> 01:14:44,319 There's a five billion dollar project would bring water from the Gulf of California across 1052 01:14:44,479 --> 01:14:49,119 the northern part of Mexico and Arizona. And ultimately to Phoenix. The States 1053 01:14:49,199 --> 01:14:53,319 considering the proposal, you know, as if they have any other option. 1054 01:14:54,039 --> 01:14:58,359 Katie Hobbs has yet to endorse the project, even though it appears to be 1055 01:14:58,479 --> 01:15:02,840 the only option. Closing the borders to newcomers, I guess would be another 1056 01:15:02,880 --> 01:15:05,840 way we could go, but you know, Katie doesn't like causing the borders. 1057 01:15:06,159 --> 01:15:10,720 Well, also, you lose tax possible tax increased revenues. Yeah, 1058 01:15:10,920 --> 01:15:14,439 I mean more people means more taxes. Guy by the name of Chuck Podolac 1059 01:15:14,680 --> 01:15:18,880 is the Arizona state official in charge of finding new sources of water, and 1060 01:15:19,000 --> 01:15:26,520 he said de sal in Mexico is a highly likely outcome. I've been wondering 1061 01:15:26,640 --> 01:15:30,560 for years. Why is no one doing anything about this when we know that 1062 01:15:30,720 --> 01:15:35,720 that is the really the best solution, or at least the best permanent solution. 1063 01:15:35,840 --> 01:15:39,680 Right then, if we have a rainy year, you don't you don't 1064 01:15:39,720 --> 01:15:41,920 need as much. If we have a dry year that you need more. 1065 01:15:42,600 --> 01:15:49,319 But a desalinization pipeline from the Gulf of California up to Phoenix seems like it's 1066 01:15:49,319 --> 01:15:55,520 going to happen. Makes sense, It thinks it needs to happen. It 1067 01:15:55,680 --> 01:15:59,560 does, I think so, absolutely have you did see the reservoirs in the 1068 01:15:59,640 --> 01:16:01,800 California over the last year because of all the rain. Yeah, they were 1069 01:16:01,880 --> 01:16:06,159 dried up completely and now they're just replenished. Yeah, but Texas is having 1070 01:16:06,199 --> 01:16:10,119 a terrible drought. Now. It just goes back and forth. I remember 1071 01:16:10,159 --> 01:16:13,520 when it was Georgia a few years back when they were showing all these reservoirs 1072 01:16:13,560 --> 01:16:15,479 empty, and now they're all fine. Yeah, exactly. It just happens. 1073 01:16:15,600 --> 01:16:19,880 It happens, It happens. But it's just the difference here is this 1074 01:16:20,439 --> 01:16:29,760 just explosive, non stop growth where a large portion of the country, despite 1075 01:16:29,800 --> 01:16:31,760 our one hundred and twenty degree weather, wants to live here. Well, 1076 01:16:31,760 --> 01:16:34,760 you don't have to shovel heat, no, and you don't have to put 1077 01:16:34,840 --> 01:16:38,960 an umbrella. I mean you can, but you don't need an umbrella for 1078 01:16:39,000 --> 01:16:42,560 the rain. Right. So yeah, people who have to do with rain 1079 01:16:42,680 --> 01:16:46,760 all day in Washington, right or snow all winter, they come here and 1080 01:16:46,800 --> 01:16:48,600 they're like, yeah, the heat's bad, but I guess what, most 1081 01:16:48,640 --> 01:16:51,039 of the day I'm inside anyways, they see, So it's not really that 1082 01:16:51,159 --> 01:16:55,920 star in California weatherwise is great. But that's why a lot of California people 1083 01:16:55,920 --> 01:16:59,000 are moving here because they still want the no cold. Well, it's so 1084 01:16:59,159 --> 01:17:03,000 expensive. It's just so expensive, so crowded anymore, and Da Phoenix is 1085 01:17:03,039 --> 01:17:05,760 not as cheap or two songs, not as cheap as it was just a 1086 01:17:05,840 --> 01:17:10,399 few years back. I don't get the appeal of Vegas other than obviously the 1087 01:17:10,600 --> 01:17:13,960 city. But like the weather there is like super cold in the winter, 1088 01:17:14,039 --> 01:17:15,600 it's super hot in the summer. They do not have good weather. It's 1089 01:17:15,640 --> 01:17:18,159 just not fun. No, people love Henderson though, like they don't go 1090 01:17:18,199 --> 01:17:20,720 to the Strip that much. They just love being in the cities that's surround 1091 01:17:20,800 --> 01:17:25,119 Vegas. Like weatherwise, I just think it's to that would be you know, 1092 01:17:25,239 --> 01:17:27,640 without the gambling, there'd be nothing there, right, it would be 1093 01:17:27,840 --> 01:17:30,560 uh probably wouldn't be grown, it'd be Wickenberg, you know, I mean 1094 01:17:30,560 --> 01:17:32,760 it would it would be New Mexico. Yeah, there'd be nobody, nobody 1095 01:17:32,840 --> 01:17:38,840 there. So but it looks like I think it's nice that somebody's actually talking 1096 01:17:38,880 --> 01:17:41,880 about a solution, and uh, you know, we've talked about it so 1097 01:17:42,000 --> 01:17:45,319 much and and it's such a problem because we're not going to stop people from 1098 01:17:45,359 --> 01:17:47,960 moving here, all right, That's just not going to happen. So so 1099 01:17:48,760 --> 01:17:51,319 what we do, and tod. I'm always fond of saying, you know 1100 01:17:51,399 --> 01:17:55,960 what, I've lived here for fifty one years and people will often come to 1101 01:17:56,039 --> 01:17:59,520 tu sound they go, see, it's awfully brown here, you know. 1102 01:17:59,600 --> 01:18:01,880 In my response to that for fifty one years has been, yeah, it 1103 01:18:01,920 --> 01:18:08,439 takes a lot of crappy weather to keep it green. Oh right, it's 1104 01:18:08,479 --> 01:18:11,119 a desert. And when I'm talking to people in other parts of the country 1105 01:18:11,159 --> 01:18:13,279 and I always said, well, how's the weather, Well, yeah, 1106 01:18:13,439 --> 01:18:15,720 I said, pretty green outside, and oh yeah, And I tell them 1107 01:18:15,760 --> 01:18:19,159 I use that line. It's usually good for a chuckle. I'll tell you 1108 01:18:19,239 --> 01:18:23,039 what though, Phoenix uses so much more. I mean, the water they 1109 01:18:23,159 --> 01:18:28,439 use. It's ridiculous us stopping people being able developers. It's a new deal, 1110 01:18:28,520 --> 01:18:30,800 is yeah, it's a whole new deal. Like their developers aren't going 1111 01:18:30,840 --> 01:18:33,760 to be able to use some reservoirs. Well, well, what developers have 1112 01:18:33,920 --> 01:18:36,840 to do in Arizona is they have to prove that they have a hundred years 1113 01:18:36,880 --> 01:18:42,920 worth of water before they even create a subdivision, which is becoming increasingly hard 1114 01:18:43,079 --> 01:18:45,399 to do. Yes, because you have to prove you have to go to 1115 01:18:45,479 --> 01:18:48,039 eight deck, you know, the Arizona Department of environmental quality and show them 1116 01:18:48,399 --> 01:18:51,600 that you have enough water to supply this subdivision for one hundred years. And 1117 01:18:51,680 --> 01:18:56,560 that's why they're not being able to build those any more down parts of Phoenix 1118 01:18:56,600 --> 01:19:00,960 because of that issue. Yeah, it's fascinating. But the average interest rate 1119 01:19:00,039 --> 01:19:03,119 on a forty eight month new car loan in the US has moved up to 1120 01:19:03,159 --> 01:19:06,439 seven point five nine percent. It's the highest we've seen since two thousand and 1121 01:19:06,560 --> 01:19:10,880 seven. That's a four year I'm sorry, four year forty eight months so 1122 01:19:11,039 --> 01:19:14,840 twelve yeah, four years, four years, seven point five nine yep. 1123 01:19:15,279 --> 01:19:16,760 High two thousand and seven. I know when my wife and I were looking 1124 01:19:16,840 --> 01:19:21,239 at cars over the Memorial Day weekend and the least payments and that sort of 1125 01:19:21,319 --> 01:19:25,279 thing, and just if I, if I financed it, what could you 1126 01:19:25,399 --> 01:19:28,560 do? And the races were up in the seven eight nine percent range, 1127 01:19:28,640 --> 01:19:30,680 which is crazy because of a year and a half ago. I got mine 1128 01:19:30,720 --> 01:19:32,479 for three and a half three point two percent. Wow, back in April 1129 01:19:32,560 --> 01:19:36,319 twenty two, they just skyrocketed. Yeah. The same same happened with the 1130 01:19:36,359 --> 01:19:41,319 mortgages. Um they touched over eight percent last week. Yeah, mortgage you 1131 01:19:41,319 --> 01:19:44,439 did, mortgage did? Yeah? Yeah. Rachel Race jumped pretty good last 1132 01:19:44,479 --> 01:19:46,479 week, very close with you know, we know that the Fed funds race 1133 01:19:46,520 --> 01:19:50,159 at a twenty two year high and the ten year treasury got real close to 1134 01:19:50,359 --> 01:19:57,760 uh sixteen year high on Thursday of last week. Yeah, what I said, 1135 01:19:57,760 --> 01:20:00,560 don't the show a couple of weeks the one year hit the since two 1136 01:20:00,640 --> 01:20:02,680 thousand, since two thousand, a couple of weeks ago. Oh okay, 1137 01:20:02,760 --> 01:20:06,800 Well that would be consistent with the twenty two year high for the h in 1138 01:20:06,840 --> 01:20:11,279 the Federal Reserve. Disney, we've been you know, we're fans of Disney, 1139 01:20:11,319 --> 01:20:14,760 and it's been a laggard. Got a nice little pop on Monday. 1140 01:20:14,880 --> 01:20:19,000 Didn't hold. But um, you know Iger's come back as the CEO. 1141 01:20:19,520 --> 01:20:24,560 Bob Biger, right, yep, ber, thank you? So what twenty 1142 01:20:24,680 --> 01:20:27,880 five now? Yeah, and he brought in There were two executives, a 1143 01:20:27,920 --> 01:20:31,399 guy named Kevin Mayer and another guy named Tom Staggs, who were his right 1144 01:20:31,560 --> 01:20:38,399 hand men, and those two were vying for his job when he retired. 1145 01:20:38,960 --> 01:20:42,000 Neither one of them got it, and so they both quit. Well he 1146 01:20:42,079 --> 01:20:45,600 has brought both of them back, so the A team is back and fully 1147 01:20:45,720 --> 01:20:50,279 in effect at Disney. You want to stock this down and out and nobody 1148 01:20:50,439 --> 01:20:56,720 has any interest in might be Disney. Yeah, and I really interested to 1149 01:20:56,800 --> 01:21:00,840 see how they do the sports division. You have you heard anything different about 1150 01:21:00,880 --> 01:21:03,399 the sports division on Disney, Not anything recent besides that they want to just 1151 01:21:03,960 --> 01:21:09,760 make ESPN a full streaming platform. Already have ESPN Plus and that's their goal 1152 01:21:09,880 --> 01:21:12,680 is to make it more streaming. So they're not at one point they're thinking 1153 01:21:12,680 --> 01:21:15,600 of getting rid of ESPN. Well, because they own Hulu and Disney is 1154 01:21:15,640 --> 01:21:17,920 gonna merge with Hulu or something, so they own the majority of whul They 1155 01:21:17,960 --> 01:21:21,800 own eighty percent of Hulu and they want to buy the rest of it from 1156 01:21:21,840 --> 01:21:26,079 whatever company owns the other twenty percent, and then they want to just start 1157 01:21:26,159 --> 01:21:30,159 streaming it, which I'm guessing they're gonna combine ESPN with it. Yes. 1158 01:21:30,640 --> 01:21:33,159 Yeah, I'm seeing a lot of stuff that I like to watch popping up 1159 01:21:33,199 --> 01:21:36,479 on Hulu. I've been going to Hulu. Who's better platform for TV? 1160 01:21:36,760 --> 01:21:40,600 Yeah? I don't always have a lot of TV shows on there. Yeah, 1161 01:21:40,600 --> 01:21:42,880 I don't really care one way or the other. It well, not 1162 01:21:42,960 --> 01:21:45,039 the biggest original ones. Netflix is still as soon as to be the biggest 1163 01:21:45,239 --> 01:21:49,840 HBO original. HBO has a lot of originals as Disney's streaming is going to 1164 01:21:49,880 --> 01:21:53,760 get lost in the mix if they don't start making more originals rather than just 1165 01:21:53,800 --> 01:21:56,279 spin offs of the nostalgia. You mentioned that, and I think that is 1166 01:21:56,359 --> 01:22:01,319 an extremely insightful servation. Yeah, I really do. I think you're absolutely 1167 01:22:01,359 --> 01:22:04,279 spot I hope they changing. I wouldn't thought about it, and it's a 1168 01:22:04,359 --> 01:22:08,760 great observation. They're also just doing a terrible job with their spinoffs, like 1169 01:22:08,840 --> 01:22:12,079 they could be doing so much better, but instead they just put this wolf 1170 01:22:12,159 --> 01:22:15,560 movement on every single Do you guys miss bed Bath and Beyond. I haven't 1171 01:22:15,600 --> 01:22:18,640 thought about it once since we last talked about it on Well if you are. 1172 01:22:18,880 --> 01:22:24,000 If you are missing it, it's back. It's back again. If 1173 01:22:24,039 --> 01:22:28,479 you're confused because you're seeing ads for the company that went out of business a 1174 01:22:28,600 --> 01:22:32,560 couple of months ago, right Overstock acquired the rights to the company's name and 1175 01:22:32,800 --> 01:22:38,119 relaunched it last Tuesday. So you can buy bed Bath and Beyond on the 1176 01:22:38,359 --> 01:22:42,880 on the bed Bath and Beyond website or the bed Bath and Beyond app So 1177 01:22:43,119 --> 01:22:46,439 if you're a bed Bath and Beyond attic, guess what, it's back. 1178 01:22:47,199 --> 01:22:51,960 It's been earning season. As we've known, we've about in the thickest things 1179 01:22:53,039 --> 01:22:56,359 here. I think what we have had sixty percent so far report how much 1180 01:22:56,359 --> 01:23:00,520 have we've had report so far? Last week was the busiest week for earnings 1181 01:23:00,560 --> 01:23:05,319 repressed this quarter so so far. On the stocks that have beat their EPs, 1182 01:23:05,359 --> 01:23:10,439 which is earnings per share their estimates, they're not going up as high 1183 01:23:10,439 --> 01:23:12,880 as they normally have. So over the past ten years, if a stock 1184 01:23:12,960 --> 01:23:15,640 beat their EPs guidance, they're up about one point five eight percent the following 1185 01:23:15,760 --> 01:23:19,680 day. This year this season, they're only up point two seven whereas the 1186 01:23:19,760 --> 01:23:24,560 stocks that missed the EPs, they're down more than their ten year average. 1187 01:23:24,560 --> 01:23:29,119 Show it's showing that the market was kind of really had high expectations go into 1188 01:23:29,199 --> 01:23:32,000 this earning season. They're not getting what they were expecting, and so therefore 1189 01:23:32,039 --> 01:23:35,399 they're selling. Even on the good news, it's not as good as they 1190 01:23:35,439 --> 01:23:38,880 want it, and on the bad news, it's even worse than what they 1191 01:23:38,920 --> 01:23:45,960 thought. I'm seeing a ton of disappointing guidance, a ton of cautious guidance, 1192 01:23:45,039 --> 01:23:49,319 which tells you we're coming into a slowing period for the economy. How 1193 01:23:49,359 --> 01:23:55,119 will that translate into stock prices? Anybody's guests, Well, here's The interesting 1194 01:23:55,239 --> 01:23:58,279 thing because if you break it down by sectors. So I just gave you 1195 01:23:58,359 --> 01:24:01,159 the overall market. If you break it down by sector, the consumer staples 1196 01:24:01,439 --> 01:24:04,600 is up one point six eight percent the day following they beat their EPs. 1197 01:24:04,920 --> 01:24:10,920 But consumer services in technology they're down around one percent the day they beat their 1198 01:24:11,000 --> 01:24:14,239 guidance. So the consumer services, technology, all those stocks that have run 1199 01:24:14,359 --> 01:24:17,159 up, they have huge expectations even when they beat. They don't care stocks 1200 01:24:17,199 --> 01:24:20,920 going down. Consumer staples, no one's really investing in that. When they 1201 01:24:21,039 --> 01:24:26,760 beat, people listen and they buy. We appreciate your joining us on this 1202 01:24:26,840 --> 01:24:30,039 Sunday morning. We hope you'll take advantage of the free financial plan we're offering, 1203 01:24:30,119 --> 01:24:34,880 which is significant and we've been busy. The guys will make an appointment 1204 01:24:34,920 --> 01:24:39,039 for your call. Ask for Todd or Dylan. They'll set up a time 1205 01:24:39,079 --> 01:24:42,479 when they can meet with you and do go through the financial plan. We'd 1206 01:24:42,520 --> 01:24:44,640 love to do it and we'd love to see you here in the office. 1207 01:24:44,800 --> 01:24:47,000 Thanks again for joining us. We'll be back with the final stegment right after 1208 01:24:47,079 --> 01:24:55,600 the break. Say it's all welcome back. You're listening to the final segment 1209 01:24:55,840 --> 01:24:57,800 of this show. It's been a great show. A lot of stuff going 1210 01:24:57,840 --> 01:25:00,319 on in the world. It's such a busy week. The biggest news was 1211 01:25:00,359 --> 01:25:05,199 the Fitch downgrade. That's hid inchestrates everything in that um kind of just was 1212 01:25:05,239 --> 01:25:09,199 the catalyst of the whole week. The ripples with that will be felt for 1213 01:25:09,239 --> 01:25:13,239 a while. It will, and especially with everything going on. And that's 1214 01:25:13,279 --> 01:25:15,760 aw Trump's car driving to Washington. That was big news. Yep, yeah, 1215 01:25:16,479 --> 01:25:19,760 that was. I mean, it just it just it's irritating if you 1216 01:25:20,159 --> 01:25:25,239 you can't even watch it every day. The gym, that's see. It's 1217 01:25:25,319 --> 01:25:28,479 kind of unfortunate because like the best treadmills for me because I'm bigger, so 1218 01:25:28,800 --> 01:25:30,000 a lot of the treadmills that choose don't work for me. That kind of 1219 01:25:30,039 --> 01:25:32,720 just wigh too much for him. So I got to use a specific couple. 1220 01:25:33,319 --> 01:25:38,039 And the TV is right in front of me is CNN, and you 1221 01:25:38,079 --> 01:25:41,720 can't change channels that choose, and it's always on and it's always talking about 1222 01:25:41,760 --> 01:25:44,039 Trump every afternoon. I don't get it. You would think they would do 1223 01:25:44,079 --> 01:25:46,319 like ESPN or something like who they got ten TVs, OK, I just 1224 01:25:46,439 --> 01:25:50,319 have to be stuck watching the one in CNN because I was across the way 1225 01:25:50,560 --> 01:25:54,119 we'll break on me. I'm the exact same way, but the tread melig 1226 01:25:54,159 --> 01:25:57,479 in front of CNN. I can do it if I go in the morning, 1227 01:25:57,520 --> 01:25:59,319 though, when I go work out at like four thirty in the morning, 1228 01:26:00,000 --> 01:26:02,079 actually having news like just current events going on on CNN, it's actually 1229 01:26:02,159 --> 01:26:05,560 normal news. You come in the afternoon primetime on the East Coast all about 1230 01:26:05,600 --> 01:26:09,279 Trump. It's really interesting. Well, work out I'm doing at four thirty 1231 01:26:09,359 --> 01:26:13,079 is trying to make sure my pillows into my petition. Yeah right, you 1232 01:26:13,359 --> 01:26:15,319 Actually, I'm in the middle of my run. I wake up at four 1233 01:26:15,359 --> 01:26:19,119 am to go bus day. You young bucks are something else. I'll tell 1234 01:26:19,159 --> 01:26:23,039 you. I want to talk about something though, that we've been talking about 1235 01:26:23,039 --> 01:26:25,960 a lot in the past and a lot more recently too. We're diving a 1236 01:26:26,000 --> 01:26:29,199 lot more into his federal employees. And if you're a federal employee, you 1237 01:26:29,239 --> 01:26:33,239 know, your retirement is very intricate and it's very unique to just a regular 1238 01:26:33,279 --> 01:26:36,199 four oh one K from a public company, a private company or whatever it 1239 01:26:36,319 --> 01:26:39,119 is. You guys, you know, you get your pension, you have 1240 01:26:39,239 --> 01:26:42,479 your healthcare, you have your the Fegley, which is the life insurance plans. 1241 01:26:42,800 --> 01:26:45,399 You might have a long term care policy. Through there you have the 1242 01:26:45,479 --> 01:26:47,920 TSP, which is pretty much the same as a four oh one K, 1243 01:26:48,079 --> 01:26:51,760 just different funds that you can invest into. But with all that combined and 1244 01:26:51,880 --> 01:26:56,319 all that everything going into your retirement, it makes for a lot more of 1245 01:26:56,399 --> 01:27:00,159 an intricate financial plan. And our financial plan we've been seeing a lot more 1246 01:27:00,199 --> 01:27:04,239 Feds lately because our financial plan offers it's able to process everything that you guys 1247 01:27:04,279 --> 01:27:08,760 have seeing a lot more FEDS Federal employes. Okay, there you go. 1248 01:27:08,960 --> 01:27:12,560 I've not made the FEDS were checking out or something. Fed employee, we 1249 01:27:12,640 --> 01:27:15,319 call them Feds. You call them Feds either way. Sometimes okay, when 1250 01:27:15,359 --> 01:27:19,000 we feel cool the short I was talking, all this sounds cool. Yeah 1251 01:27:19,119 --> 01:27:26,199 that's cool. Yeah, yeah, either way either way. So yeah, 1252 01:27:26,199 --> 01:27:30,760 I'm sorry, we digress. But with that is the TSP, and I 1253 01:27:30,840 --> 01:27:33,680 mean, the reason a lot of we've been talking to a lot of federal 1254 01:27:33,760 --> 01:27:39,680 employees is because the TSP can't help you. They're not able to help you 1255 01:27:39,800 --> 01:27:42,319 if you call them and ask for advice on anything like what do I do 1256 01:27:42,399 --> 01:27:45,039 with my plan? Do I roll it into an IRA? What is this 1257 01:27:45,159 --> 01:27:45,960 fun? What does that fund? I mean, they're not able to help 1258 01:27:46,000 --> 01:27:49,279 you because they just legally can't. All they tell you is your money's there, 1259 01:27:49,359 --> 01:27:51,239 this is what's in each one. That's all they can do. So 1260 01:27:51,319 --> 01:27:56,720 a lot of federal employees do end up rolling over their TSP into an IRA 1261 01:27:57,239 --> 01:27:59,920 later on, because, like I was saying earlier, it can get more 1262 01:28:00,000 --> 01:28:01,520 in line with the risk toolers. You can mitigate risk more than IRARA. 1263 01:28:01,680 --> 01:28:04,520 You can't do that in a TSP, and you're stuck there doing it on 1264 01:28:04,560 --> 01:28:06,680 your own. And if you really don't know what's going on, or you 1265 01:28:06,720 --> 01:28:10,079 don't care to know what's going on, you just put your money away each 1266 01:28:10,159 --> 01:28:13,800 month and you're just waiting until retirement. And that's the reason to come talk 1267 01:28:13,840 --> 01:28:16,840 to us and get our point of view from how we can help doing it 1268 01:28:17,000 --> 01:28:20,720 more of a customized portfolio. Also, a lot of federal employees they have 1269 01:28:20,840 --> 01:28:24,640 this idea that they have they're going to live off their pension and soul security 1270 01:28:24,680 --> 01:28:28,159 and that's their income, where most of them they don't consider that they also 1271 01:28:28,239 --> 01:28:30,760 have this TSP that they're putting away which could supplement their income to live more. 1272 01:28:31,119 --> 01:28:34,319 I mean, it's really fascinating that we see federal employees are some of 1273 01:28:34,359 --> 01:28:40,600 the most responsible group of people that we meet, they've done everything basically right. 1274 01:28:40,920 --> 01:28:43,720 They have a lot put away in their TSP, and they also have 1275 01:28:43,920 --> 01:28:46,760 great pensions, so and a lot of them live fually. So when they 1276 01:28:46,840 --> 01:28:49,119 do retire, they think, Okay, I'm just gonna live off my pension 1277 01:28:49,119 --> 01:28:51,760 and soul security and then call it a day. And they don't realize that 1278 01:28:51,840 --> 01:28:56,800 they can live a lot better quality of life if they want to, and 1279 01:28:56,840 --> 01:28:59,399 a lot of them it's so fascinating today they'll be like, I don't want 1280 01:28:59,439 --> 01:29:01,760 any money left. I don't I don't care about inheritance. I want to 1281 01:29:02,039 --> 01:29:05,279 use every time. But then we show them that if they continue with their 1282 01:29:05,319 --> 01:29:09,720 spending habits currently, they're going to leave a million, two million, three 1283 01:29:09,760 --> 01:29:13,000 million dollars at the end of the plan. Yeah. For years I've reminded 1284 01:29:13,119 --> 01:29:15,079 clients that if we could be given the day to death, we could do 1285 01:29:15,159 --> 01:29:17,680 a heck of a lot better job. Yeah, exactly. And I don't 1286 01:29:17,760 --> 01:29:19,399 have anyone to come up. Well, there's a way. I mean, 1287 01:29:19,399 --> 01:29:24,239 a lot of federal employees if they do need And the big thing we work 1288 01:29:24,279 --> 01:29:26,760 with federal employees is the idea of they get their pension and you'll get your 1289 01:29:26,800 --> 01:29:30,720 soul security. If there is any gap between your expenses and your income coming 1290 01:29:30,760 --> 01:29:33,760 in during retirement, that's where we come in and try and help you bridge 1291 01:29:33,800 --> 01:29:39,399 that gap, whether it's through finding an income from your TSP or finding an 1292 01:29:39,399 --> 01:29:42,560 annuity if that's something you want. And the only reason we like annuities in 1293 01:29:42,600 --> 01:29:45,680 the sense is because they have they can offer that guaranteed income that we personally 1294 01:29:45,760 --> 01:29:49,159 can't and that's how you but you also those comes with fees. We have 1295 01:29:49,279 --> 01:29:54,279 different models in house that we can produce income and that's sometimes enough to supplement 1296 01:29:54,399 --> 01:29:59,840 the bridge. And then when we're calculating spending, we have their current s, 1297 01:30:00,199 --> 01:30:02,119 so what are they spending just living day to day right now? And 1298 01:30:02,279 --> 01:30:06,199 then our plan we can show what is too much spending and then you get 1299 01:30:06,239 --> 01:30:10,720 a really nice range where you know what's too much and what you currently are 1300 01:30:10,760 --> 01:30:13,840 spending. Find that middle. Right, Yes, it's probably going to be 1301 01:30:13,920 --> 01:30:16,680 more spending what you're currently doing, and that's okay. You've worked hard, 1302 01:30:17,000 --> 01:30:21,199 You've built up this next stagg And also Dean talks about all the time there's 1303 01:30:21,199 --> 01:30:26,399 this bell distribution and retirement. The first two or three years you're kind of 1304 01:30:26,479 --> 01:30:29,319 scared. You don't know how much you can spend because you never really have 1305 01:30:29,840 --> 01:30:31,760 lived off a nest egg before, you've been getting paychecks or your life. 1306 01:30:32,000 --> 01:30:34,560 But then after that you get real comfortable and you want to live life. 1307 01:30:34,840 --> 01:30:40,239 You want to go on these big retirement vacations. But then after about ten 1308 01:30:40,359 --> 01:30:43,479 years of that, your health is gone right, your health really you're not 1309 01:30:43,600 --> 01:30:45,520 in a place where you want to be traveling every single year. And then 1310 01:30:45,600 --> 01:30:49,039 the income drops off a cliff again. So just because you might be spending 1311 01:30:49,239 --> 01:30:53,760 more in the next ten years, you should be. You worked your entire 1312 01:30:53,840 --> 01:30:56,760 life for these golden years. Take advantage of them. I know it's really 1313 01:30:56,840 --> 01:31:00,800 hard mentally to get around that fact. But you've done all the hard work. 1314 01:31:00,880 --> 01:31:03,039 Now it's time to reap the fruits of your labor. The other thing 1315 01:31:03,119 --> 01:31:10,640 that people don't really think about young federal employees that are starting families, right, 1316 01:31:11,119 --> 01:31:14,119 they get you know, they're all over the place, so they don't 1317 01:31:14,159 --> 01:31:16,199 do a plan, they don't get stuff together. They think they have it 1318 01:31:16,279 --> 01:31:19,119 every together. But the one thing that they don't have, and this is 1319 01:31:19,159 --> 01:31:23,239 where it all starts, is the risk part of it. They think they 1320 01:31:23,279 --> 01:31:26,000 got some federale, they got some insurance from the federal government, right, 1321 01:31:26,920 --> 01:31:29,800 But if something happened to them and they have only been there five six, 1322 01:31:29,800 --> 01:31:32,720 seven years where and they're not there long enough for the pensions and stuff, 1323 01:31:32,840 --> 01:31:35,840 or they were all no pensions, how they're going to make up the difference. 1324 01:31:36,439 --> 01:31:39,359 They have kids, they got to go to college, they got to 1325 01:31:39,359 --> 01:31:42,920 do the No one plans for that. So you know, a term insurance 1326 01:31:42,960 --> 01:31:45,399 policy would be great to old too, to make sure that they're because if 1327 01:31:45,399 --> 01:31:48,640 they're younger, know it's cheaper, but even a whole life policy where it 1328 01:31:48,720 --> 01:31:53,640 actually can grow and be something for them later on, is worth it if 1329 01:31:53,640 --> 01:31:58,039 they're young enough to do it. So you think you don't need anything because 1330 01:31:58,039 --> 01:32:00,359 you don't want to ever think about the worst thing. But if you if 1331 01:32:00,359 --> 01:32:01,760 you just by yourself, it doesn't matter, right, But if you got 1332 01:32:01,800 --> 01:32:05,119 a wife and you got kid trying to right and trying to do stuff, 1333 01:32:05,520 --> 01:32:08,680 you have to suck it up and say, you know what, I got 1334 01:32:08,800 --> 01:32:13,560 to think about this. We realistically I don't want to use the insurance, 1335 01:32:13,600 --> 01:32:15,479 but god a bit, if it's something happens, I need to do it. 1336 01:32:15,720 --> 01:32:21,159 And getting it while you're young just starts the financial planning going that most 1337 01:32:21,199 --> 01:32:25,479 people don't do. Absolutely ye, how about a fun fact. You want 1338 01:32:25,520 --> 01:32:28,199 a fun fact? That's here? Close out the show? Here? You 1339 01:32:28,279 --> 01:32:30,279 know what in and out? Have you been in in outlet? That was 1340 01:32:30,319 --> 01:32:34,359 an in and outlett? I'm always in and out Here you go. I 1341 01:32:34,479 --> 01:32:41,359 noticed that some people had one white sleeve on and some people had two white 1342 01:32:41,399 --> 01:32:44,840 sleeves on, and other people had no white sleeves on. Well, I 1343 01:32:44,880 --> 01:32:47,439 asked them, I said, why do you what's going on here? If 1344 01:32:47,520 --> 01:32:51,720 you have tattoos, they have to be covered by that white sleeve. Yeah, 1345 01:32:53,079 --> 01:32:56,960 so you can tell people that have to either wear a long sleeve shirt 1346 01:32:57,359 --> 01:32:59,680 or you have to wear the white sleeve. So when you walk into and 1347 01:32:59,760 --> 01:33:02,159 out and half the people have one or two white sleeves on, that's what's 1348 01:33:02,199 --> 01:33:06,520 going on. In addition to that they are no longer allowed to wear mask 1349 01:33:08,279 --> 01:33:10,840 at work. You said that last week. That's your fun fact. You 1350 01:33:10,880 --> 01:33:13,319 don't have anything more. That's a fun fact. It's a fact. It's 1351 01:33:13,359 --> 01:33:15,680 not that fun, you know like it, you know fun, It's just 1352 01:33:15,800 --> 01:33:18,600 a fact. Like I brought a stuff toy home to my granddadter one time, 1353 01:33:18,640 --> 01:33:21,319 and it was kind of hard. No, no, no, you 1354 01:33:21,359 --> 01:33:25,159 don't get to say that. You don't get it. You don't get it. 1355 01:33:25,680 --> 01:33:28,600 You're the one always given this guy a hard time. I brought a 1356 01:33:28,680 --> 01:33:30,560 stuf toy to my granddaughter one time that I had wanted a carnival and it 1357 01:33:30,640 --> 01:33:33,640 was kind of hard, and I gave it to her and and she said, 1358 01:33:34,119 --> 01:33:42,880 Papa, this is not a good gift. So kids said, they're 1359 01:33:42,920 --> 01:33:45,520 darn the things right. She's she's a little blonde, and she said, 1360 01:33:45,840 --> 01:33:47,520 Papa, my hair is golden and I have white hair. And I said, 1361 01:33:47,800 --> 01:33:49,600 my hair is white, and she goes, I don't like white hair. 1362 01:33:50,479 --> 01:33:53,720 Very straightforward. I think you can do in year four, right, 1363 01:33:54,760 --> 01:33:58,479 what do you mean I still do that? That's true. Good point, 1364 01:33:58,840 --> 01:34:00,319 as long as it's the truth, tell it like it is. You want 1365 01:34:00,319 --> 01:34:03,359 to talk about Apples Earneys a little bit biggest company in the world, probably 1366 01:34:03,399 --> 01:34:06,560 the most widely owned that the learning. They didn't have bad revenue. They 1367 01:34:06,560 --> 01:34:11,359 were in line. It's just they had sinking sales of iPhones, iPads and 1368 01:34:11,479 --> 01:34:14,840 the mac and that's part of the problem. The third consecutive quarter where they 1369 01:34:15,039 --> 01:34:19,520 reported lower revenue than the year before. Yeah, and they're expecting the same 1370 01:34:19,640 --> 01:34:23,279 thing at the end of the third quarter. Now, overall, I bought 1371 01:34:23,279 --> 01:34:27,159 a new iPhone. I guess I'm not making too big. Yeah. Revenue 1372 01:34:27,279 --> 01:34:30,640 down yeah yeah, yeah from from a year ago. So yeah. And 1373 01:34:30,680 --> 01:34:33,319 they have such high expectations being Apple that when all those sales are down and 1374 01:34:33,359 --> 01:34:36,800 then they forecasted the third quarters to be the same results, that was part 1375 01:34:36,800 --> 01:34:40,119 of the issue. You know, I hope that company gets killed because I 1376 01:34:40,159 --> 01:34:42,960 want to keep buying and buying into that lower and lower. That's a great 1377 01:34:43,000 --> 01:34:45,439 I want to I want people to be to be cautious with all of this 1378 01:34:45,680 --> 01:34:50,399 AI excitement. And it hit me this past week. AI excitement is like 1379 01:34:50,640 --> 01:34:55,960 the electric vehicle charging stations, right, that's what AI is. Right now, 1380 01:34:56,079 --> 01:35:00,359 all you're doing is building out the AI infrastructure. You're receiving no revenue, 1381 01:35:00,720 --> 01:35:04,800 You're only expending money, same thing I do. Elect your cause remember 1382 01:35:04,840 --> 01:35:08,760 four three billion dollars, as I said, just like the electric chargers, 1383 01:35:08,840 --> 01:35:13,239 right, that's crazy. No, No, there's so much Okay, go 1384 01:35:13,359 --> 01:35:15,319 back. It was all it was all the baron Wanna stocks. Yeah a 1385 01:35:15,359 --> 01:35:19,760 few years ago, just dot com companies. It's always the same stuff. 1386 01:35:19,960 --> 01:35:24,399 It was Bitcoin. They run up when there's nothing there and it's just a 1387 01:35:24,479 --> 01:35:28,319 cycle. All the memes, all the meme stock. So I was watching 1388 01:35:28,399 --> 01:35:31,479 that on that there was something on Netflix about a game stop. Have you 1389 01:35:31,560 --> 01:35:35,119 seen that yet? That that whole thing that happened, and it's kind of 1390 01:35:35,199 --> 01:35:40,119 interesting. I'm sorry, I'm sorry, did have it. Yeah, I 1391 01:35:40,159 --> 01:35:44,239 know it's my fault. I was signaling something that I'm trying to look I'm 1392 01:35:44,239 --> 01:35:45,640 trying to look at something upside down. To relax, I'm not seeing it. 1393 01:35:45,960 --> 01:35:50,239 Take a breath, be patient. So we do only have about a 1394 01:35:50,279 --> 01:35:55,520 minute left. So obviously, uh, people love the show. I mean, 1395 01:35:56,039 --> 01:35:59,079 this is the busiest summer we've ever had. Guys, we're doing something 1396 01:35:59,199 --> 01:36:01,600 right. People like we're doing unbelievable. Yeah, and Gardine and I wanted 1397 01:36:01,600 --> 01:36:05,840 to relax. Who stuff going on? Yeah, it's a plan, this 1398 01:36:06,000 --> 01:36:11,000 financial plan and hearing us and talking to us. We're no different here than 1399 01:36:11,039 --> 01:36:14,319 we are there. Come see us, get your get your free analysis, 1400 01:36:14,479 --> 01:36:16,239 your free plan, and I mean free, and we'll give it to you. 1401 01:36:16,479 --> 01:36:20,479 You'll enjoy it, you'll have something. And then guess what someone's gonna 1402 01:36:20,520 --> 01:36:23,359 have to work with you. So a lot of people work with us. 1403 01:36:23,720 --> 01:36:26,319 It's okay, that's what we like, but we're not going to force you. 1404 01:36:26,640 --> 01:36:30,079 We'll be back next week where your money matters. Everybody needs to be 1405 01:36:30,159 --> 01:36:32,479 healthy. That's what makes everything go. If you're healthy, then we're happy. 1406 01:36:32,960 --> 01:36:38,479 And we're happy and healthy. We all want to be provable