US Debt Gets Downgraded - How Did the Markets React?

100:00:03,359 --> 00:00:08,240Good morning everybody. It's Sunday morning, eight o'clock right here on seven ninety200:00:08,320 --> 00:00:12,000K and st. We are hereto bring you the Money Mattie Show,300:00:12,679 --> 00:00:15,720and it is going to be agood one today. We have so many400:00:15,759 --> 00:00:20,039things to talk about, and wetold you watch out for this market.500:00:21,079 --> 00:00:24,120You know, you come into August, it's kind of weird. August,600:00:24,120 --> 00:00:28,600September, October's on the whole.The odds are that the markets will not700:00:28,640 --> 00:00:33,719do well. We had a twoand a half point excuse me, two800:00:33,759 --> 00:00:37,719point three percent and moved down inthe SMP, two point eight percent in900:00:37,799 --> 00:00:42,359NAZAC, one percent in the Dow. So for the month pretty much the1000:00:42,399 --> 00:00:46,079same. We only had one extraday, which was last week, which1100:00:46,119 --> 00:00:50,359is still putting us at sixteen percentSMP, five percent now thirty two percent1200:00:50,439 --> 00:00:55,280NAZDAC. We're gonna talk about mitigatingyour risk because that's important. We keep1300:00:55,320 --> 00:00:58,359talking about it. I've been talkingabout it, we will continue to talk1400:00:58,359 --> 00:01:00,679about it because if you're going toinvest and you're gonna manage money, you've1500:01:00,679 --> 00:01:04,359got to understand the risks. You'regonna have to understand how to mitigate them1600:01:04,799 --> 00:01:10,159so you can help yourself through theportfolios or have somebody do it for you.1700:01:10,519 --> 00:01:12,239If you keep going to someone,they just says, just hang out,1800:01:12,359 --> 00:01:15,640just hang out, just hang out. Well, you and I both1900:01:15,680 --> 00:01:19,439know it's not always the same.Things don't just go up and you look2000:01:19,480 --> 00:01:23,159around. There's a lot of problemsin our economy. I'm happy the market2100:01:23,159 --> 00:01:26,680went up. I'm not happy thatI kept thinking it wouldn't go that much2200:01:26,760 --> 00:01:33,359higher. But you know what,still made some money and I'm still protected.2300:01:33,920 --> 00:01:37,040And that's the position I want tobe in. All right. So2400:01:37,239 --> 00:01:38,599this is the money amount of show, and it's brought to you by Greenberg2500:01:38,640 --> 00:01:45,200Financial Group, which is both theregistered investment advisory and a broker dealer registered2600:01:45,239 --> 00:01:51,879with the SEC. Members of CIPICand members of Nastack Finnway. I should2700:01:51,920 --> 00:01:56,840say so. On the show,we talk about different products and different strategies2800:01:56,840 --> 00:02:00,120and different ideas, and we allhave our own opinion. Everything has some2900:02:00,159 --> 00:02:07,480type of risk. I can't expressenough that you need to understand those risks3000:02:07,480 --> 00:02:10,360prior to investing. Even if you'rebuying an annuity, you need to know3100:02:10,560 --> 00:02:14,759what the risks are. If you'rebuying a government bond, you need to3200:02:14,800 --> 00:02:16,639know the risk. And if you'rebuying stock. You have to know the3300:02:16,800 --> 00:02:24,479risk to overallocating, under allocating,understand what you're doing, and it makes3400:02:24,520 --> 00:02:34,360this process of the up and downsmuch easier. So on Friday, the3500:02:34,479 --> 00:02:38,719market rallied nice in the morning,I mean nice. SMP was up like3600:02:38,840 --> 00:02:47,479thirty five points, only two turnaroundand fall twenty five points. That's a3700:02:47,479 --> 00:02:53,080big turnaround. That's about a fivesix hundred turnaround on the Dow and SMP3800:02:53,319 --> 00:02:59,560and everything else that we went through. Okay, the market is weak underpinnings3900:02:59,680 --> 00:03:06,400right now. The markets rallied onFriday because Amazon came out with tremendous earnings4000:03:06,479 --> 00:03:13,159and went higher. But Apple didincome out the bad earnings, but they4100:03:13,199 --> 00:03:16,080weren't what the markets expected and theygot knocked down, and eventually Apple brought4200:03:16,120 --> 00:03:23,159the rest of the market down withthat's selling that is happening. It was4300:03:23,199 --> 00:03:30,360a Friday reversal. We are ina critical situation because there's not a lot4400:03:30,360 --> 00:03:35,759of support in here on a technicalbasis, and each support level that was4500:03:35,759 --> 00:03:38,360a resistance level that was actually goodsupport. We just broke it the other4600:03:38,439 --> 00:03:44,039day and now there's really none ofthat until maybe about forty three fifty on4700:03:44,080 --> 00:03:49,240the SMP and we close that Idon't know, forty forty four and change.4800:03:50,439 --> 00:03:53,000I mean it was forty four seventyeight or something like that. So4900:03:54,000 --> 00:03:59,319that gives us another one three percentdown maybe four percent, which would put5000:03:59,400 --> 00:04:02,840us at the five percent seven percentlevel from whatever highs you want to look5100:04:02,879 --> 00:04:11,120at recently, you think that can'thappen, think about last year. Okay,5200:04:11,159 --> 00:04:13,879after we fell hard, we gotback up to forty three hundred,5300:04:13,879 --> 00:04:15,240and next thing, you know,body the end of the year, we5400:04:15,199 --> 00:04:20,079were at about thirty five thirty sixhundred on the SMP five hundred. There's5500:04:20,120 --> 00:04:25,040a lot of things out there thatmake you negative, but the one thing,5600:04:25,519 --> 00:04:28,600and I can handle most of thenegatives, but the one thing that5700:04:28,639 --> 00:04:32,240I cannot handle is the valuations.And right now, the valuations are in5800:04:32,240 --> 00:04:38,000the mid twenties. Earnings, youknow, the valuation of price and earnings.5900:04:38,120 --> 00:04:44,439Okay, in twenties, usually it'sabout sixteen seventeen eighteen percent. You6000:04:44,439 --> 00:04:50,120can handle it, but historically it'sfourteen fifteen sixteen percent, which means either6100:04:50,199 --> 00:04:55,399earnings are gonna have to get robustto come up, or stocks have to6200:04:55,480 --> 00:04:59,480drop. And I'm gonna go onthe second one. Stocks are gonna have6300:04:59,560 --> 00:05:04,160to drop to get us back intoa scenario with evaluations a lucrative to go6400:05:04,240 --> 00:05:10,000in and the risk is lower whenevaluations are high. That's what starts the6500:05:10,120 --> 00:05:14,680problems that you have of having morerisk than you do reward. And yes,6600:05:14,720 --> 00:05:16,639the markets can still go up,and yes, a lot of those6700:05:16,639 --> 00:05:25,720companies that have gone is going up. All those magnifics in seven and now6800:05:25,759 --> 00:05:28,839they're get knocked down a little bit. Microsoft got knocked down, Apple got6900:05:28,879 --> 00:05:31,759knocked out, not in anywhere nearwhere they were at the beginning of the7000:05:31,839 --> 00:05:36,240year, but they're pulling off thehighs. NA Video is pulling off the7100:05:36,319 --> 00:05:40,920highs. At some time in thenext three months, those stacks will get7200:05:40,959 --> 00:05:43,920down to a point that people wantto buy them again and they will be7300:05:43,959 --> 00:05:49,079the ones that are traded and theywill rally back up. So if you7400:05:49,160 --> 00:05:53,639took some money off the table andyou have that money in cash and money7500:05:53,639 --> 00:05:56,959markets are paying dice right now,you can get over five percent and some7600:05:57,000 --> 00:06:00,399of those money markets out there,then when I'm saying to you is be7700:06:00,519 --> 00:06:08,240patient, be patient, mitigate somerisk. We have inverse funds on we7800:06:08,360 --> 00:06:13,959have a big position in cash.Be patient. There's a lot out there.7900:06:14,279 --> 00:06:20,560This whole political scene is incredible.Right now, You've got indictments,8000:06:20,240 --> 00:06:24,639a past presents, a third indictment. You don't have to why you just8100:06:24,720 --> 00:06:27,560brush it off your shoulder because youlook at it and you go, are8200:06:27,560 --> 00:06:30,439you kidding me? Do you thinkthat we are that stupid? The American8300:06:30,480 --> 00:06:36,639people? That's stupid that a dayafter every time Biden has something go wrong8400:06:36,680 --> 00:06:43,279with him or his son, there'sanother indictment against Trump the next day.8500:06:44,319 --> 00:06:50,240That's insane, And truthfully, Idon't understand how they are allowed to get8600:06:50,600 --> 00:07:01,519away with it so blatantly. Ifit's a criminal, and it's not defensible,8700:07:01,560 --> 00:07:05,319and you're having and you have togo ahead, and and and and8800:07:05,319 --> 00:07:14,519and indict a president for having paperworkthat's top secret paperwork, okay, files8900:07:14,519 --> 00:07:19,720and stuff at his home and raidhim. How does that not also happen9000:07:20,120 --> 00:07:25,720for the sitting president when they knowthat there's not only one place, not9100:07:25,800 --> 00:07:30,920only two, but three or fourplaces he had top secret files strewn all9200:07:30,959 --> 00:07:40,480over the place. But nothing happens. Every single liberal that hates Trump,9300:07:41,079 --> 00:07:45,759I go forget the names. Let'slook at the situation. If this happened9400:07:45,759 --> 00:07:47,759to one should have happened to theother and they go absolutely. I said9500:07:47,759 --> 00:07:55,639to why isn't it well, weall know why they hide their heads in9600:07:55,680 --> 00:08:00,240the sand. The Democrats are theones that are blowing this thing right now9700:08:00,279 --> 00:08:05,160because they have an opportunity to cleanit up. But nobody wants to clean9800:08:05,199 --> 00:08:09,360it up. And the only way, the only way, And I don't9900:08:09,360 --> 00:08:13,120know how we change this unless weget a president in there that we really10000:08:13,160 --> 00:08:16,199believes this is the way to doit is we need term limits. It's10100:08:16,240 --> 00:08:20,560about damn time we got term limits. Because Biden has been there at forty10200:08:20,600 --> 00:08:24,199some odd years now, he justdoes business the way he always done it,10300:08:24,199 --> 00:08:28,040which is telling me we've been cookingfor hundreds of years and we were10400:08:28,560 --> 00:08:33,960we you know, let's think aboutthose people by forget going back to like10500:08:33,440 --> 00:08:37,879the Washington and Lincoln and all thosedays when there's nothing going on. Jefferson,10600:08:37,240 --> 00:08:41,159just think recently. Think go backto Roosevelt and all and the things10700:08:41,159 --> 00:08:46,519that were going on back then.We didn't know about it because nobody really10800:08:46,519 --> 00:08:52,519brought it up. We didn't havesocial media. Everybody was pro America as10900:08:52,559 --> 00:08:56,799we become against America, and wehave allowed people to do that, which11000:08:56,879 --> 00:09:03,919is absolutely absurd. You've seen thethe diverse types of people thinking, and11100:09:03,000 --> 00:09:09,600they come up with all this garbageto go after one but not the other.11200:09:09,799 --> 00:09:13,879I'm about cleaning it all up,all of it, all of it.11300:09:13,360 --> 00:09:16,639Term limits will make us do that. They tell us they have to11400:09:16,720 --> 00:09:20,159vote on it, and that's whythey'll never happen. Well, how ridiculous11500:09:20,360 --> 00:09:28,200is that we should just don't voteanybody in there. I don't know what11600:09:28,240 --> 00:09:31,440we can do, but we gotto figure that out because they'll put every11700:09:31,559 --> 00:09:37,559ridiculous little in your thing that doesn'tmatter that we have to pay for.11800:09:37,840 --> 00:09:43,600That we pay for and all thosehash marks and earmarks, and and the11900:09:43,639 --> 00:09:50,039way they make their deals. Wepay for that. But yet we can12000:09:50,200 --> 00:09:56,639get what we want. They votethemselves raises, they vote themselves rules that12100:09:56,679 --> 00:10:01,639they're allowed to go ahead and tradeindividual company these even though they're they're making12200:10:01,679 --> 00:10:07,519the laws and the regulations for that. We'll see how far that builder that12300:10:07,600 --> 00:10:09,720came up a couple of weeks agothat says that they shouldn't be able to12400:10:09,759 --> 00:10:16,399do it. We'll see how farthat gets. You see it, Hunter12500:10:16,759 --> 00:10:26,000Biden has been brought to the surfaceshowed that he did not pay his taxes,12600:10:26,039 --> 00:10:33,879which he's admitted it in about onepoint two million. He's called country12700:10:33,919 --> 00:10:39,440clubs as right of us, andthere were really sex clubs. He's he's12800:10:41,000 --> 00:10:50,840done so many illegal things and yetnothing happened to him. There was justice12900:10:50,879 --> 00:10:54,279with this judge who said, ohwait a second, there's no way he's13000:10:54,320 --> 00:11:00,519getting immunity for everything. And Ihope he just blew it. I hope13100:11:00,519 --> 00:11:03,120we stand up right now and puthim right where he belongs. If you13200:11:03,360 --> 00:11:11,039or I didn't pay our taxes onpurpose, this is the I R s13300:11:11,120 --> 00:11:16,039and ordered them. They know themoney tram came from China and Ukraine and13400:11:16,240 --> 00:11:22,159Romania, but we allow it tohappen because we have to be stuck with13500:11:22,200 --> 00:11:31,039these same swampy, hypocritical, nonhonest politicians. The only way we fix13600:11:31,120 --> 00:11:37,840it is that we get to thepoint that they agree that they're there for13700:11:37,840 --> 00:11:43,799the American people and agree with usthat they have term limits. There's prestige13800:11:43,919 --> 00:11:48,120enough, and you'll get plenty ofjobs out of there because they don't do13900:11:48,159 --> 00:11:52,519it for one hundred and fifty onehundred seventy five two hundred thousand dollars that14000:11:52,600 --> 00:12:00,120they might make. But somehow theycome out or fifty seventy one hundred three14100:11:58,600 --> 00:12:05,679hundred million dollars better than they wentin. The Obama has had nothing,14200:12:05,440 --> 00:12:11,960absolutely nothing. What are they worthnow? Half a billion dollars? The14300:12:11,080 --> 00:12:16,080Clintons had nothing. They're worth closeto a billion dollars seven eight hundred million,14400:12:18,480 --> 00:12:20,879But you have to claim they don'thave anything. How's this happened?14500:12:22,120 --> 00:12:24,840How do we allow it to happen? And why does it happen in front14600:12:24,840 --> 00:12:30,200of everyone's face? Because if youopen your mouth, then you don't join14700:12:30,240 --> 00:12:33,440the club and be part of thegood old boys stuff. So everyone has14800:12:33,519 --> 00:12:37,240power and they help each other stayin This is what happens. Term limits,14900:12:37,480 --> 00:12:41,879term limits. Term limits are somehow, some way, somebody that understands15000:12:41,879 --> 00:12:46,240the system. We've got to figureout how to do it. Governors have15100:12:46,399 --> 00:12:54,960term limits, so the state's ownedthat dumb But somehow we let us senators15200:12:54,360 --> 00:13:01,039and the House representatives be eighty ninetyyears old sitting in there, just taking15300:13:01,039 --> 00:13:07,919an advantage of us. So wemove forward, and it's a mess.15400:13:07,440 --> 00:13:11,039It's a mess, and if we'regonna blow it up, blow it up,15500:13:11,200 --> 00:13:16,799and let's get started with people thatcan. You came in the economic15600:13:16,840 --> 00:13:24,039reports, okay, they come outon Friday, you can't even believe them15700:13:24,240 --> 00:13:31,480because they keep refining them by fortyfifty eighty one hundred thousand dollars whatever they15800:13:31,519 --> 00:13:35,000need to do to say, Okay, we had this, Betty All.15900:13:35,080 --> 00:13:39,840Really it was forty thousand less jobs, and I don't get that. Don't16000:13:39,879 --> 00:13:46,919give us inaccurate numbers that drive thestock market when you don't really know the16100:13:46,960 --> 00:13:54,159answers. You don't know the answer. Supposedly, defend is going based on16200:13:54,639 --> 00:13:58,399unemployment numbers. They're based on jobcreation numbers, all the stuff, and16300:13:58,440 --> 00:14:03,639then when they get revised, they'remaking decisions on the before revision ones.16400:14:07,039 --> 00:14:15,639It makes no sense, especially intoday's volatile markets, that these stocks,16500:14:15,679 --> 00:14:20,519these companies, the interest rates,the gold market, everything is trading off16600:14:20,559 --> 00:14:24,639of these economic numbers, trying toforecast what the Federal Reserve is going to16700:14:24,720 --> 00:14:33,320do. The job reports came in. Hourly pay went up again point four16800:14:33,399 --> 00:14:37,480percent. That's great, people working. Why can't we get people back to16900:14:37,519 --> 00:14:45,240work? The problem we had washours worked in a week went down a17000:14:45,240 --> 00:14:48,279little bit, not a lot,but it went down to thirty four point17100:14:48,320 --> 00:14:58,120six hours a week. Everybody wantsmore money and work less unemployment went down17200:14:58,159 --> 00:15:03,519to three point five percent, noneof the Sometimes these numbers don't make sense.17300:15:05,159 --> 00:15:11,399Unemployment went down, job creation wasstill one hundred and eighty seven thousand.17400:15:15,000 --> 00:15:16,200Pay has gone up. So everyonethat used to say, oh,17500:15:16,279 --> 00:15:18,720they need to get more, theygot to get a living wage. It's17600:15:18,799 --> 00:15:24,279here. People are making money.They don't want to work, and beyond17700:15:24,320 --> 00:15:30,039that, they don't want to geteducated in the jobs that pay more.17800:15:30,799 --> 00:15:35,399They just think they should get paidmore. We're giving away too many free17900:15:35,440 --> 00:15:39,840things, too much money and getswhat happened. The biggest news of the18000:15:39,879 --> 00:15:50,000week is that our government debt aUS government bonds that have triple A weighted18100:15:50,120 --> 00:15:52,759they and they always have except oneother time in twenty eleven. They got18200:15:52,799 --> 00:15:58,120knocked down too, But that wasunderstanding with all the bank failures we were18300:15:58,120 --> 00:16:07,039having. Got knocked down from tripleA rated to double A plus. Now18400:16:07,039 --> 00:16:11,399you have all these hot chides,Warren Buffett, Jamie Diamond, Hey,18500:16:11,399 --> 00:16:14,840it doesn't really matter. We're stillthe strongest. Everybody does it. That18600:16:14,919 --> 00:16:19,600makes sense, of course it does. But what they're not telling you is18700:16:19,639 --> 00:16:26,919the long term effect of a downgradein your debt means that interest rates will18800:16:26,960 --> 00:16:33,120stay higher. For longer, becausenow, in order to give out that18900:16:33,200 --> 00:16:36,639debt, people are gonna want toget paid a little bit more because it's19000:16:36,639 --> 00:16:44,039not triple A rated, and ifit's not triple A rated, you gotta19100:16:44,080 --> 00:16:48,519get a few percentage more than whatyou were getting. And that does not19200:16:48,679 --> 00:16:56,759bolde well in an economy that wedon't have enough money to pay for everything,19300:16:57,720 --> 00:17:03,480and we're an economy with an administrationthat wants to do nothing but to19400:17:03,600 --> 00:17:10,240increase regulation. Somebody asked me theother day what was the biggest difference between19500:17:10,319 --> 00:17:17,519Trump's economy and Biden's economy, AndI said it was the philosophy of regulation.19600:17:18,599 --> 00:17:25,359Trump wanted to deregulate as much ashe could in order to put the19700:17:25,519 --> 00:17:30,559burden on corporations to spend their money, to grow, to hire, to19800:17:30,759 --> 00:17:36,319prosper And the mentality of that wasbusinesses and people. They were able to19900:17:36,359 --> 00:17:38,880look out into a future and say, hey, this is good, this20000:17:40,039 --> 00:17:42,839is prosperous. I can spend moneytoday because I'm going to see the return20100:17:42,920 --> 00:17:49,839five, seven, ten, fifteenyears from now. With Biden, you're20200:17:49,880 --> 00:17:56,440afraid to do anything because he keepsregulating everything that costs everyone money, especially20300:17:56,119 --> 00:18:03,920the small business people. I wouldbe the audit used to cost us five20400:18:03,960 --> 00:18:11,160grand, then they went to thisPCOB thing and then it was fifteen eighteen20500:18:11,200 --> 00:18:14,519grand, then it was twenty five, then thirty, then thirty five,20600:18:14,559 --> 00:18:18,319then forty, and every single yearit goes up to almost fifty thousand dollars.20700:18:18,319 --> 00:18:25,359That's ridiculous. They order fin yourorders, sec orders. What do20800:18:25,400 --> 00:18:29,039you need to have this? Youget an order to financial statement for small20900:18:29,079 --> 00:18:33,000companies. We are not a bigcompany, but yet they want the same21000:18:33,319 --> 00:18:37,559thing that Marylands or JP Morgan orany of these people get, or RBC21100:18:38,160 --> 00:18:42,319as a whole on the high theywant us to have the same audit.21200:18:45,240 --> 00:18:48,319Well, of course it's going tocost money, a lot of money.21300:18:48,599 --> 00:18:52,839So what does that do it Itgets passed on you continually. It's the21400:18:53,039 --> 00:18:57,599it's the end user that ends upgetting hurt by it. If people want21500:18:57,599 --> 00:19:03,640to stay in business, we arethe end of uses clients and uses shoppers21600:19:04,039 --> 00:19:10,559and uses so to live. Itcourse, so much more money. And21700:19:10,599 --> 00:19:14,359they called inflation everybody. They don'tdo anything about getting the inflation down.21800:19:14,759 --> 00:19:18,440Sure it's come down from eight tofive or something like that, but they21900:19:18,480 --> 00:19:26,640haven't done any things through the regulatorypolitical system. To sustain us having low22000:19:26,920 --> 00:19:32,079inflation. All they're doing is lettingthem making the Federal Reserve keep raising interest22100:19:32,160 --> 00:19:37,400rates, which is not the onlyway to do it. It's a tool.22200:19:38,039 --> 00:19:45,200We need that tool. But justthink now, if we have something22300:19:45,200 --> 00:19:48,920that happens and the economy rolls over, which you see is doing it a22400:19:48,960 --> 00:19:56,000little bit, but everything stays high, and keep raising interest rates, it's22500:19:56,000 --> 00:20:00,799going to affect the entire economy.Now, the economy starts going and has22600:20:00,839 --> 00:20:03,119it and gets really tough, whatis a fellow reserved. The only thing22700:20:03,160 --> 00:20:08,440they can do is low interest rates. The low interest rates, we could22800:20:08,440 --> 00:20:14,839have massive inflation again. Somebody askedme the other days, is it possible22900:20:14,880 --> 00:20:19,359we can go back to that doubledigit environment? I said absolutely. If23000:20:19,359 --> 00:20:22,759we screw this up, we'll beback to ten to eleven, twelve thirteen.23100:20:23,920 --> 00:20:32,240Mortgage is again, and it's gonnashut us down. We gotta stop23200:20:32,279 --> 00:20:36,079spending, you know, if youhave money, right, And one of23300:20:36,079 --> 00:20:40,240the reason the economy is doing wellis people during the pandemic and all they23400:20:40,240 --> 00:20:45,160weren't spending much. They were scaredand the government kept giving everyone money.23500:20:45,680 --> 00:20:49,440Well, everything opened up. Theystarted making plans for late twenty two twenty23600:20:49,480 --> 00:20:53,359three. For sure, mortgage aredoing well. People are taking money out23700:20:53,680 --> 00:21:00,440doing some stuff they should do.But going to Europe, travel around,23800:21:00,519 --> 00:21:03,480spending on things. It was pennedup the man from all the money that23900:21:03,599 --> 00:21:08,359people have had. That money's goingto run out. But when states did24000:21:08,359 --> 00:21:12,920everybody have this extra money left overfrom the pandemic and different sources and different24100:21:12,960 --> 00:21:17,519things. You know, they hada surplus there for a while in New24200:21:17,599 --> 00:21:22,119York, they had a surplus therein California, and now they don't.24300:21:22,359 --> 00:21:26,200I don't believe it. Where arethey spending the money on? Stop giving24400:21:26,200 --> 00:21:36,880it away just to get reelected.It's not gonna happen. We're in an24500:21:36,960 --> 00:21:41,519environment that's very nervous to me.And regardless, you're better stay in short24600:21:41,640 --> 00:21:47,960term bonds right now until we seeit, until we see a turn the24700:21:48,000 --> 00:21:52,559markets. You better mitigate your risk, you bet, you better understand risk24800:21:52,640 --> 00:21:56,559and reward. Understand the tools youcan use to hadge raise money, sell24900:21:56,680 --> 00:22:03,359calls by the inverse funds, buyputs. There's a lot of things to25000:22:03,440 --> 00:22:07,920do because this market has resk yetwe can come back to forty three hundred.25100:22:07,960 --> 00:22:10,039I don't think that could be thebottom. I think we can go25200:22:10,079 --> 00:22:14,799back to where we were if thingsget bad over the next year. I25300:22:14,839 --> 00:22:18,559hope it doesn't. It affects mybusiness, it affects the psyche, it25400:22:18,599 --> 00:22:25,599affects everything. But I have tobe honest and realistic that this administration does25500:22:25,839 --> 00:22:32,519nothing to help us grow the economy. It's on a house of cards right25600:22:32,559 --> 00:22:37,000now. I love to build thingson cement steps, so when you get25700:22:37,079 --> 00:22:38,480knocked down, you go two orthree steps and you're able to come back25800:22:38,519 --> 00:22:42,559and go further. This economy.Think about all the things that are out25900:22:42,599 --> 00:22:45,519there. We don't drill, wedon't do oil, oil prices going back26000:22:45,599 --> 00:22:51,960up again. All we want todo is talk about ev electric vehicles.26100:22:52,119 --> 00:22:56,799Do you know Ford is gonna losethree billion dollars three billion dollars, three26200:22:56,000 --> 00:23:02,039billion dollars, probably more than thatif they weren't using accounty because they can't26300:23:02,039 --> 00:23:03,319get those cars out. They can'tdo the things they want to do.26400:23:03,680 --> 00:23:11,559People don't want them. They don'tmeet the needs of people that want to26500:23:11,759 --> 00:23:15,680drive. If you're driving around inan area maybe ten twenty miles, sure26600:23:15,759 --> 00:23:18,720it's great, and you'll be ableto afford the things at home, and26700:23:18,839 --> 00:23:23,240you don't mind waiting. Sure,they're great. Our society is built on26800:23:23,400 --> 00:23:29,839quickness and effectiveness and efficiency. AnEV car has none of that right now.26900:23:30,039 --> 00:23:34,039And it's just a lot of talkfrom the left about cleaning up and27000:23:34,160 --> 00:23:37,640doing this, and they don't dohalf the stuff that they need to do.27100:23:38,759 --> 00:23:45,799High bred, high bread like everythinglike everything in life. Okay,27200:23:45,079 --> 00:23:49,279allocations, a little bit of this, a little bit of that makes a27300:23:49,440 --> 00:23:56,720great strong economy. What most ofthese people that are so pro climate and27400:23:56,440 --> 00:24:02,759pro environment and so like, weneed EV, we need EV they don't27500:24:02,759 --> 00:24:08,640even realize that most of the electricitythey're getting is from coal fired plants and27600:24:08,759 --> 00:24:15,519the others is natural gas and nuclea. Very self sustainable, very few self27700:24:15,559 --> 00:24:22,200sustainable energy is coming out to doempower their cause. We'll be back.27800:24:22,279 --> 00:24:26,119We're packed with a lot of goodinformation today. We appreciate your listening to27900:24:26,279 --> 00:24:38,279The Money Matter Show. Welcome back, everybody. It's the Money Matter Show,28000:24:38,319 --> 00:24:42,319and we do appreciate you listening in. Remember if you can't listen in28100:24:42,960 --> 00:24:48,240at eight to ten on Sundays,we have podcasts, which is our radio28200:24:48,319 --> 00:24:52,039show. You go to our website. They're all on YouTube. You can28300:24:52,119 --> 00:24:56,079go to iHeartRadio and listen to them. You can just go ahead and say,28400:24:56,119 --> 00:24:59,359hey, Money Matters with Dean Greenbergand you and you and you get28500:24:59,359 --> 00:25:03,400a bunch of them. Um,we just uh we have them for you28600:25:03,559 --> 00:25:08,200to listen, to learn and toask us questions. I like that podcast28700:25:08,240 --> 00:25:14,720because no commercials. Commercial free.Listen to the Money Matter Show commercial free.28800:25:14,880 --> 00:25:18,160Well there's like one commercial to startthe show, yeah, right at28900:25:18,200 --> 00:25:21,440the beginning, and then zoom passright through. Yeah. It's a pretty29000:25:21,480 --> 00:25:23,599nice service, right. Big newsthis week was Fitch. Did you talk29100:25:23,599 --> 00:25:26,400about that in the monologue? Littlebit? Where were you? Was I29200:25:26,519 --> 00:25:30,319not loud enough for you? Iwas in the other I was in the29300:25:30,400 --> 00:25:33,559other room, but I wasn't listening. Yes, we talked about Fitch.29400:25:34,160 --> 00:25:38,039We talked about the downgrade. Wetalked about how you know, he had29500:25:38,079 --> 00:25:42,240Buffett and Diamond out there saying it'suh, doesn't really matter too much,29600:25:42,279 --> 00:25:45,400was Sue the grade. It's isridiculous. It is ridiculous, But there29700:25:45,519 --> 00:25:49,559is a long term effect to itbecause when you get downgraded, it costs29800:25:49,640 --> 00:25:53,519more money for people to want tobuy your bonds, and we have so29900:25:53,680 --> 00:25:57,880many trillions of bonds out there.Dave even in a through a quarter higher30000:25:59,319 --> 00:26:02,880cost you and me money out ofour taxes. And there are the other30100:26:03,119 --> 00:26:06,720rating services besides fish. But itjust it's kind of a little flying the30200:26:06,839 --> 00:26:10,640ointment, if you will. Justit makes it a little bit less desirable30300:26:10,720 --> 00:26:14,279than this straight triple A. Andwe saw rates pop up to at the30400:26:14,359 --> 00:26:18,680highest level in about nine months,and they're already and they're just not that30500:26:18,839 --> 00:26:23,680far away from the highest rates intwenty years. So this is this is30600:26:23,720 --> 00:26:29,559why it's ridiculous, right. Ichallenge anybody who has a billion dollars,30700:26:29,599 --> 00:26:33,720a more million dollars, the moreone hundred thousand dollars the more, tell30800:26:33,799 --> 00:26:37,759me what country you want to putyour money in, and I'll give you30900:26:37,839 --> 00:26:41,000a one way ticket to go thereright now. Yeah, where we are31000:26:41,039 --> 00:26:44,279you gonna put it and think it'ssafer than the United States of America.31100:26:44,880 --> 00:26:48,720If this is the mentality that wehave of our citizens here today, that's31200:26:48,759 --> 00:26:52,160where we got to start. I'lltell you right now. We got to31300:26:52,240 --> 00:26:55,799change our culture. We got tochange our minds. We become so weak31400:26:56,079 --> 00:26:59,759that we think that something else.And you know what you ask that question,31500:27:00,119 --> 00:27:02,559Oh, you know when people saythat, so what do you want31600:27:02,559 --> 00:27:06,000to put your money? Well,I don't know. Don't be so stupid31700:27:06,319 --> 00:27:11,519and think that it was okay todowngrade our bonds. Although although you've got31800:27:11,599 --> 00:27:15,000to admit, if if the ifour country were a stock, you wouldn't31900:27:15,000 --> 00:27:18,480want to own this stock? Right, what would you? I mean you32000:27:18,480 --> 00:27:19,920would what would you own? Instead? No? I mean give me a32100:27:21,000 --> 00:27:22,640country. Oh you're saying that Ihave to choose a country. Yeah,32200:27:22,759 --> 00:27:29,039right, Um, let's see,probably Zimbowie, I don't know. My32300:27:29,200 --> 00:27:36,759point is stop allowing the world toput down America and if you don't like32400:27:36,839 --> 00:27:38,359it here, get the hell out, because you know what we need to32500:27:38,400 --> 00:27:45,160get back. We were We areon a very brink of I don't know.32600:27:45,240 --> 00:27:48,960I don't want to say a disaster, but but like a like a32700:27:48,039 --> 00:27:53,680powder keg between China and Russia,the Middle East, South America. It's32800:27:53,799 --> 00:27:57,920ridiculous, and we're doing nothing toactually bring ourselves in and get stronger.32900:27:59,000 --> 00:28:00,880But isn't that exactly what fits istrying to say. Yeah, they're saying33000:28:00,920 --> 00:28:04,519that we spent way too much moneyover the trying to stay with the down.33100:28:04,759 --> 00:28:08,200They're wrong. We've continued to sayon this show that the government spending33200:28:08,200 --> 00:28:11,640too much money and that's what Fitsexactly said was why they're down no problem,33300:28:11,720 --> 00:28:17,720downrade the others too, spending toomuch money and no solution. Well,33400:28:17,720 --> 00:28:21,680I understand Dean's point, there's nobetter alternative, but still there are33500:28:21,799 --> 00:28:25,000problems that have been showing up inthe fiscal governance of the United States.33600:28:25,079 --> 00:28:27,160Well, double A plus is notexactly jung bonds. Okay, I mean33700:28:27,839 --> 00:28:30,960it's really good. We went forcripolated double. But my point is,33800:28:32,000 --> 00:28:34,960say there's no other countries they downgradedand they got worse problems than we have,33900:28:36,960 --> 00:28:38,920and nobody would put all their moneyin that country other than now.34000:28:40,000 --> 00:28:41,920It's what I'm saying, down gradeus, downgrade the world right now.34100:28:42,160 --> 00:28:48,000Put everybody on notice, everybody,because you know what the recession hits,34200:28:48,000 --> 00:28:51,359it's hitting everyone. The pandemic hits, it hits everyone. And who gets34300:28:51,440 --> 00:28:56,000stuck making all the damn vaccines payingfor all that stuff we do? Anytimes34400:28:56,039 --> 00:28:57,680there's a war, who pays allthe money to it? We do?34500:28:59,359 --> 00:29:03,119Okay, So if you want tostart and knock that's down and everything else,34600:29:03,519 --> 00:29:07,480and and and and and allowing tobuyden administration to say it's Trump's fault,34700:29:07,000 --> 00:29:15,680Trump's fault, we have we havea very very um hypocritical media and34800:29:15,079 --> 00:29:18,920and and sources that we get stufffrom. That's all I mean. The34900:29:18,920 --> 00:29:22,319administration is always going to blame theprevious administration. We always know that.35000:29:22,480 --> 00:29:26,160That's how it's always worked. Butagain, when you look at the fact35100:29:26,240 --> 00:29:30,000that our debt has not it hasn'tbeen changed too much. I mean going35200:29:30,039 --> 00:29:34,880from triple A to double A plus. For most banks and insurance um companies,35300:29:36,039 --> 00:29:40,200they have to hold collateral that's doubleA plus or better. So we're35400:29:40,279 --> 00:29:42,680still in that boat. The onlything that would be really concerning is you35500:29:42,759 --> 00:29:47,559go below double A, then insurancecompanies could no longer hold it as collateral.35600:29:47,599 --> 00:29:49,720Banks can no longer hold it ascollateral. Then they're forced to sell35700:29:49,759 --> 00:29:52,119that and find a different type ofcollateral. But like you said, Dean,35800:29:52,160 --> 00:29:55,759where they going to go? What'swhat's a better collateral than a US35900:29:55,839 --> 00:30:00,319treasury? Our deficit is rising tosix point three percent of our GDP this36000:30:00,480 --> 00:30:03,680year, and that's up from threepoint seven percent of the GDP last year.36100:30:03,039 --> 00:30:07,279Our death rising a lot, andthat's part of Fitch's reasoning. I'm36200:30:07,319 --> 00:30:11,960not saying they shouldn't have downgraded US. Okay, what I'm saying there's downgrade36300:30:11,960 --> 00:30:15,319to the other countries too well,but they probably have DAN I don't follow.36400:30:15,440 --> 00:30:18,480I don't think there's any company thatany country that has a better rating36500:30:18,480 --> 00:30:22,079in the United States currently. There'sother triple A rated countries. Really,36600:30:22,359 --> 00:30:25,759we're gonna look it up. Youlook it up. Fitch has other Triple36700:30:25,799 --> 00:30:27,720A rated countries. Yeah, Iwould be interested in knowing about that.36800:30:27,880 --> 00:30:30,079We can find it. But Ithink the funny party. You talk about36900:30:30,119 --> 00:30:33,400Biden, you talk about Trump,and you watching the news media, you37000:30:33,440 --> 00:30:37,480know Box is going after Biden andand CNN is going after Trump, and37100:30:37,519 --> 00:30:40,039there's all they do. Yeah,it's good. And yet here we go37200:30:40,279 --> 00:30:42,880twenty twenty four, it's gonna beBiden versus Trump again. I don't see37300:30:42,880 --> 00:30:48,759any any way that that's not goingto happen. I don't see Biden there.37400:30:48,559 --> 00:30:52,319You don't think he's gonna run,No, it's not that he's gonna37500:30:52,400 --> 00:30:56,079run. He's not gonna be ableto run. What's the alternative? Then37600:30:56,839 --> 00:30:59,759they're gonna remove them? Or youthink he's physically not going to be able37700:30:59,759 --> 00:31:02,960to Yeah, something, someone's gonnareplace him, someone's gonna talk to him.37800:31:03,359 --> 00:31:04,839Do you think he's making his owndecisions. No, I don't think37900:31:04,839 --> 00:31:08,440anybody's thought that from day one.Okay, I do not think that they're38000:31:08,440 --> 00:31:15,079gonna have the problem is the puppetstears, Okay, need to find somebody38100:31:15,160 --> 00:31:18,559they can control. If they puthim in there, they will Michelle,38200:31:19,799 --> 00:31:22,440there's talk of that. That'd bea good one for them. I think,38300:31:22,480 --> 00:31:26,039Wow, they can control them.They see what they're going to do38400:31:26,279 --> 00:31:29,599is what they always do. Howdid they run the last campaign in the38500:31:29,680 --> 00:31:33,279basement, right, they use thepandem out of the public eye. Yeah,38600:31:33,640 --> 00:31:37,839they will not make this change intothree months before the election. Can38700:31:37,920 --> 00:31:41,039Nobody will have time other than themedia just telling you how great it say38800:31:41,119 --> 00:31:45,480it's say if it's Michelle Obama,right, how great she is, and38900:31:45,640 --> 00:31:48,039everyone, Oh, it's great,we finally have somebody else to vote for.39000:31:48,680 --> 00:31:52,599Okay. That's how they're gonna don'thave time to dig into the past,39100:31:52,759 --> 00:31:56,599right or anything period. They're gonnapull it the police switcher because they39200:31:56,680 --> 00:32:00,319know they're up against it right now. Well, it's also I mean,39300:32:00,359 --> 00:32:02,279you gotta think that's why Trump's trialhas got to be set for next June.39400:32:04,160 --> 00:32:07,640Why it leans up leads it rightup to the election. Yeah,39500:32:07,640 --> 00:32:09,680but here's here. You mean you'retalking about him being on trial during the39600:32:09,759 --> 00:32:14,960election, Is that what you're thinking. Yeah, yeah, No, it's39700:32:14,960 --> 00:32:17,519like leading right up to the election. The trial starts next summer. There's39800:32:17,559 --> 00:32:22,240no way they're gonna let that trialcomplete until after the election. The lawyers39900:32:22,279 --> 00:32:25,880will use so many different things becauseobviously if if he gets it, if40000:32:25,920 --> 00:32:31,319he gets uh found guilty, right, if he's of a felony, then40100:32:31,680 --> 00:32:35,720in a constitution says he can't.Now, we've been under that impression.40200:32:35,799 --> 00:32:38,079That is not true. Really toldme the other day. I know,40300:32:38,279 --> 00:32:40,759No, we've been We told youthat, dude, we've been under that.40400:32:40,920 --> 00:32:44,519That is absolutely not true. Okay, why did you tell me that40500:32:44,599 --> 00:32:49,160the three requirements to run for president? Three requirements be a native born US40600:32:49,240 --> 00:32:52,240citizen. You've got to be thirtyfive years of old as of age,40700:32:52,440 --> 00:32:55,160and you have to have lived inthe United States for fourteen years. You40800:32:55,279 --> 00:33:00,000can be a murderer on death rowand run for president. That is insane,40900:33:00,039 --> 00:33:04,599isn't that something? In fact innineteen twenty in nineteen twenty, a41000:33:04,759 --> 00:33:08,799socialist candidate did run for president fromprison got three percent of the vote,41100:33:09,359 --> 00:33:13,640and of course Lyndon Laruss who runsevery year. He ran from prison in41200:33:13,759 --> 00:33:16,359nineteen ninety two. So Trump,if he were convicted of a felony,41300:33:16,640 --> 00:33:22,880could continue his campaign and run forpresident and ultimately be elected president. Then41400:33:22,920 --> 00:33:25,480you've got something unprecedented that you'd haveto worry about. But yes, Dan,41500:33:25,519 --> 00:33:29,119you're absolutely right at all. He'llrun for jail and you guys,41600:33:29,400 --> 00:33:30,960oh, we can't do that.So we can. Well, that's the41700:33:31,160 --> 00:33:35,039one. One of the his opponentssaid, Trump is running to stay out41800:33:35,079 --> 00:33:37,599of prison. Right, Well,it doesn't matter, and that matters.41900:33:37,759 --> 00:33:42,200Trump obviously don't want to president,but it does not matter. What is42000:33:42,200 --> 00:33:45,720that fascinating? If he becomes presidentfrom jail, Can he go ahead and42100:33:45,960 --> 00:33:52,279have a jail like uh, constructedright on the White House? This is42200:33:52,559 --> 00:33:55,559this is one so we can gofrom work to home. You have a42300:33:55,680 --> 00:33:59,319you have a work work visa.He can go to work during the day42400:33:59,599 --> 00:34:02,440and then have to sleep in thejail. You know, we that's unprecedented.42500:34:02,519 --> 00:34:07,039But obviously I think obviously you'd haveto you'd have to suspend the sentence42600:34:07,920 --> 00:34:10,239while he serves this term and thenput him back in house arrest. Fought42700:34:10,280 --> 00:34:13,639in himself, wouldn't he? Ifelt like you could find in yourself.42800:34:13,760 --> 00:34:15,599Right, that's that's a good point. In fact, that's something I've heard42900:34:15,599 --> 00:34:20,039people talk about that Trump gets elected, he'll pardon himself. I mean that,43000:34:20,400 --> 00:34:22,559but it's pretty something that we've beenunder the fault. Well, there's43100:34:22,559 --> 00:34:24,840a lot of jobs. If you'rea felon, good luck, you're never43200:34:24,920 --> 00:34:29,360gonna get that job, isn't orsomething. But you can't vote. You43300:34:29,440 --> 00:34:31,199can't even be a financial advisor ifyou're a felon, if I'm correct,43400:34:31,280 --> 00:34:34,400if you can, you can't.Also if you can, yeah, you43500:34:34,440 --> 00:34:38,280can be a murderer and and bea financial bander. Okay y, yeah,43600:34:38,840 --> 00:34:43,079no, you could have a dullYeah listen, you have to just43700:34:43,559 --> 00:34:49,880uh put that all down, whateveryour background. Yeah, that's crazy.43800:34:49,920 --> 00:34:52,000That's why most people don't do itif something bad, because everyone season says43900:34:52,000 --> 00:34:54,840I don't want to be with that. But even the San Francisco Chronicle and44000:34:54,880 --> 00:34:58,719you can't get much further left thanthat says Trump is never going to be44100:34:58,800 --> 00:35:02,400convicted of anything because for a seriouscrime, you need one hundred percent of44200:35:02,480 --> 00:35:07,559the jury. Supreme Court ruling intwenty twenty, and they're not gonna get44300:35:07,559 --> 00:35:10,719one hundred percent of jurors anywhere,I guess unless they have it in downtown44400:35:10,800 --> 00:35:15,360Washington, DC. Maybe even stillnot to mention they're trying to indict him44500:35:15,400 --> 00:35:22,239on stuff. Still, most peoplewould never ever, ever even even be44600:35:22,360 --> 00:35:24,320brought up on No. Okay,I mean, you know, I like,44700:35:24,480 --> 00:35:30,440is that guy what's his name,Gersha Gershwin, the attorney the uh44800:35:30,639 --> 00:35:35,880he's actually a Democrat, but heknows the law from Harvard, but he44900:35:36,000 --> 00:35:42,440always talks about how this is theyeah Gershawitz, Yeah, yeah, the45000:35:42,679 --> 00:35:46,239worst lawyring. He said, uh, like he said. I heard him45100:35:46,239 --> 00:35:52,079the other night. He said,Laura one on one says, you shouldn't45200:35:52,280 --> 00:35:55,239even be indict in this person.Ridiculous. We'll be right back. It's45300:35:55,239 --> 00:36:01,760the Moneymounting Shows. Welcome back,everybody. We are here with the Bunny45400:36:01,800 --> 00:36:06,320Bundy Show, and we have theinformation that we talked about before. So45500:36:06,320 --> 00:36:08,079I want to go back to thetriple rating from Fitch and everything. There's45600:36:08,119 --> 00:36:13,320ten other countries that have triple Arating. There are there are Australia one45700:36:13,480 --> 00:36:17,760with Fitch. Australia is one,then a bunch of European countries Denmark,45800:36:19,480 --> 00:36:24,559Germany, Luxembourg, Netherlands, Switzerland, Norway, Sweden, EU, Singapore,45900:36:25,400 --> 00:36:29,199those are all the ones that haveto ratings. Still, we're still46000:36:29,239 --> 00:36:34,440triple A rated with Moody's DVRs,but we are double A plus with SMP46100:36:34,559 --> 00:36:37,280and FISH now and the S andP S houses double A plus in two46200:36:37,320 --> 00:36:43,079thousand and eleven. S P,S ANDP went to double A plus in46300:36:43,119 --> 00:36:45,800two thousand and eleven and then neverwent back up. Yeah, exactly,46400:36:45,320 --> 00:36:50,960that's what they just said. It'sstill a plus plus two eleven. Yep.46500:36:51,199 --> 00:36:54,039So going back to what I saidbefore, if anybody wants to go46600:36:54,159 --> 00:36:59,159live in those countries, go ahead. They're triple A rated. If you46700:36:59,199 --> 00:37:00,400want to go to up though,started next year, you're gonna have to46800:37:00,440 --> 00:37:06,159pay for a visa. Yeah,sorry, seven dollars and seventy nine cents46900:37:06,159 --> 00:37:09,360they'll cost you. It's just thewhole process of trying to get it.47000:37:10,280 --> 00:37:12,760Yeah, they said, if youwant to do it, So, say47100:37:12,760 --> 00:37:15,039you want to go take a Europeantrip next summer, you probably got to47200:37:15,039 --> 00:37:16,559do it a few months in advance, just to make sure there's nothing to47300:37:16,599 --> 00:37:19,639wait. I mean, I guessthey got to pay for a visa to47400:37:19,679 --> 00:37:22,320come visit here. I was wonderingabout, like, yeah, like people47500:37:22,360 --> 00:37:27,519from Mexico when they vacation here,or people from Canada and they vacation here,47600:37:27,559 --> 00:37:30,159do they have to pay for anythingor do they just I don't know47700:37:30,159 --> 00:37:31,400if it's a year, because whenI go to Mexico, I don't pay47800:37:31,440 --> 00:37:36,559anything. I just got no vacationhere if you're here for a length of47900:37:36,639 --> 00:37:38,840time. But how do they knowthat, Like I could go vacation there,48000:37:38,880 --> 00:37:42,679Well, they don't if you're ifyou're hiding, but if they catch48100:37:42,719 --> 00:37:45,960you, then you're not, thenthey catch you. Yeah. The bottom48200:37:45,960 --> 00:37:49,599line is nobody's policing this. Youknow, if you can go to a48300:37:49,880 --> 00:37:52,920thirty European countries for a total oflike ninety days or something, is what48400:37:53,000 --> 00:37:55,639they're saying. With the visa.I'll bet you there's millions of people in48500:37:55,679 --> 00:38:00,480the United States unexpired visas. Ohsure, millions. Did millions of people48600:38:00,559 --> 00:38:06,119here that they don't even have visas? They came across the boarder, they've48700:38:06,119 --> 00:38:08,880been here, they're working on onon a cash basis, or they have48800:38:08,960 --> 00:38:12,800somebody else that's SOI security number.When we worked at the when I had48900:38:12,840 --> 00:38:15,719the restaurants, people would come in, we would put them through the system.49000:38:16,920 --> 00:38:22,119They had a Social Security number.What could I do? I hired49100:38:22,199 --> 00:38:25,119them because they wanted to work,right, because they had illegal you had49200:38:25,159 --> 00:38:28,719the whole system to go through it. You can't say, oh, that's49300:38:28,800 --> 00:38:32,199not you. I mean they didn'tlook like you know, they weren't Mexican49400:38:32,239 --> 00:38:37,760and had a name like John Smith. They had they had names that corresponded49500:38:37,800 --> 00:38:40,159to the social Security number. Well, we're gonna let him in and let49600:38:40,199 --> 00:38:43,400him work. We want them topay taxes, right, they did pay49700:38:43,480 --> 00:38:46,039taxes. Yeah, I mean that'sthe only way we ever got they ever49800:38:46,119 --> 00:38:51,960got caught. What they can doit for two years and then the person's49900:38:52,119 --> 00:38:55,480name or social Security they had,say in Texas or some other place they50000:38:55,519 --> 00:38:59,880were getting call for not paying theh doing their tax returns. He'm saying50100:38:59,920 --> 00:39:01,679they had a self security and everybodythat wasn't there. Yes, right,50200:39:02,079 --> 00:39:06,960Oh, okay, they're using someoneelse's. Okay, that's a little different50300:39:07,000 --> 00:39:10,239story. Huh, yeah, it'sa little illegal. That's some economic numbers.50400:39:10,320 --> 00:39:15,800This week I saw an article thesixty one percent of Americans live paycheck50500:39:15,920 --> 00:39:19,880to paycheck, and the good news, I guess is that's the same as50600:39:19,920 --> 00:39:22,440it was twelve months ago. Iwas gonna say it isn't gonna get it50700:39:22,519 --> 00:39:25,079isn't getting any worse. Um,Euros getting worse as credit card debt.50800:39:25,559 --> 00:39:30,519Absolutely, the credit card debt isbuilding and that's how there's new highs.50900:39:30,519 --> 00:39:31,840It seems like every month the lastyear and a half. Yeah, no51000:39:32,039 --> 00:39:36,639question, no question, and therates are twenty percent plus. Ye.51100:39:36,880 --> 00:39:39,199It's it's just a ticking time bombing. Like you said earlier, Well,51200:39:39,239 --> 00:39:43,679what are they gonna do. They'regonna start for giving the the for certain51300:39:43,880 --> 00:39:46,360uh people that don't have enough money. They're gonna stop for giving the credit51400:39:46,400 --> 00:39:51,440card debt. There you go,that's next. That's next. If factory51500:39:51,480 --> 00:39:57,920activity in China fourth straight month asit declined again, sagging exports as more51600:39:57,960 --> 00:40:01,159and more countries find other play justto get their stuff made, right,51700:40:01,199 --> 00:40:06,559But we did see Starbucks report earningssaying that their China sector is doing better51800:40:06,639 --> 00:40:09,880than expected, So there is someactivity out there, just the exports don't51900:40:09,880 --> 00:40:14,679seem to be picking up at all. No, because the manufacturers are starting52000:40:14,679 --> 00:40:17,239to look other places, so theynot beholding to China, right, Okay,52100:40:17,679 --> 00:40:22,039it only makes sense. What Idon't understand is why we're not bringing52200:40:22,119 --> 00:40:30,519on a medical supplies and drugs backto America. I haven't earn anybody manufacturing52300:40:30,599 --> 00:40:35,400stuff back here again, essential stuff. Remember with the pandemic, we couldn't52400:40:35,400 --> 00:40:38,119get anything. Yeah, I remember. I know. There's just a fairly52500:40:38,320 --> 00:40:45,119significant amount of building of manufacturing facilitiesin Mexico, right, northeastern and northwestern52600:40:45,239 --> 00:40:50,360Mexico, and primarily so. Sothey've been listening. They've been listening to52700:40:50,440 --> 00:40:52,559us. Well, it just makessense that they don't have to listen.52800:40:52,599 --> 00:40:55,519They just look at the facts.Right, Mexican workers are more productive than52900:40:55,639 --> 00:41:05,000Chinese workers. They work harder forfour less and uh, what are you53000:41:05,000 --> 00:41:07,840talking about? We know their minimumway we did way, Yeah, we53100:41:07,840 --> 00:41:12,800didn't on the port. Yeah.But the sweatshops in China, they're not53200:41:12,880 --> 00:41:15,800going. There's not too many anymorebecause a lot of the urbanization in China53300:41:15,880 --> 00:41:19,719led to people going to cities.So a lot of those sweatshops were in53400:41:19,840 --> 00:41:22,440rural areas where they can get awaywith a lot outside of like those international53500:41:22,480 --> 00:41:25,760trade rules. So in the inthe big cities in China, they can't53600:41:25,760 --> 00:41:30,320get away with it. What's yourundeployment rate for young people? It's terrible.53700:41:32,639 --> 00:41:36,360It's a big problem. Last weekwe said twenty one point six percent53800:41:36,519 --> 00:41:39,159on eighteen to twenty four year olds. I wonder if there's any cultural dynamics53900:41:39,559 --> 00:41:44,480that back that up. Maybe theydon't like younger workers as much as older54000:41:44,480 --> 00:41:49,199workers. Remember about six months agowe talked about that laydown philosophy in China54100:41:49,519 --> 00:41:53,599where they they just simply quit,uh. Climbing the corporate ladder has been54200:41:53,719 --> 00:41:59,719uh something you had to do rightin China, and this laydown group said,54300:42:00,039 --> 00:42:02,159we're done. We aren't they notpart of the labor force if they're54400:42:02,199 --> 00:42:07,119trying to be like an entrepreneur onsocial media. Sure, so that's the54500:42:07,199 --> 00:42:09,039case too. I mean TikTok ishuge over there all the social media.54600:42:09,039 --> 00:42:13,400That's what happens here in the USis people trying to be entrepreneurs, start54700:42:13,440 --> 00:42:15,920their online business, their Instagram,and they're not considered part of the labor54800:42:15,960 --> 00:42:19,599force. There's no question that theChinese economy is one of the ticking time54900:42:19,639 --> 00:42:22,199bombs in on the planet, right, Um, and the last people are55000:42:22,280 --> 00:42:25,599good oil Dean. You mentioned itin your monologue. Up two bucks to55100:42:27,000 --> 00:42:30,920eighty two sixty that's a nine monthhigh. Um, you know, I55200:42:30,960 --> 00:42:32,679don't know what that's going to doto gasoline prices by so I'm creeping up,55300:42:32,719 --> 00:42:37,199back up towards four bucks. That'show to sneaky rally, hasn't it?55400:42:37,639 --> 00:42:39,880Well, it really has. They'rejust steady almost every single day we55500:42:40,000 --> 00:42:45,000were down in the seventies. Didyou hear anything about us putting a buying55600:42:45,320 --> 00:42:47,559a reserves back? No, weldThere was a lot of talk about it55700:42:47,719 --> 00:42:52,400and h how much should we dowhile we were negative? Actually because we55800:42:52,480 --> 00:42:54,079sold more than we bought here,Yeah, the problem had a Now it's55900:42:54,159 --> 00:42:58,039up here. I guess who's gotto be buying it to put the keep56000:42:58,119 --> 00:43:00,639the reserves. So we're still sellingfor a while. At least we're still56100:43:00,639 --> 00:43:05,039selling. The reason we're still sellingis there's a congressional mandate back in twenty56200:43:05,119 --> 00:43:08,400eighteen or fifty fifteen said that wehave to sell this oil. So it's56300:43:08,400 --> 00:43:12,519already mandated we have to do it. And that's what the Department of Transportation56400:43:12,599 --> 00:43:15,880head of Department Transportations as hardest tobuy when you're selling, right, and56500:43:16,039 --> 00:43:19,760that makes sense. Yeah, sowe and I think we're selling till the56600:43:19,840 --> 00:43:22,639end of the year. That wouldhave been the greatest trade ever though one56700:43:22,679 --> 00:43:24,480of the greatest trades ever selling outat night when you start to realize all56800:43:24,719 --> 00:43:28,840Biden does. He says things thathe's going to do and it never actually56900:43:28,920 --> 00:43:30,800does ever happen. Says things thatare good enough for people to get behind57000:43:30,880 --> 00:43:34,679them for the time being. Well, it's easy when it's other people's money.57100:43:35,480 --> 00:43:37,320Yeah, okay, you could saywhat you're gonna do and lay It's57200:43:37,320 --> 00:43:40,880just like you know, people allyou know, all these pundits on TV,57300:43:42,360 --> 00:43:44,800the markets going down, going down, going down, and everyone you57400:43:44,880 --> 00:43:46,480know, if you listen to himin January, February, March, April,57500:43:46,559 --> 00:43:51,119May, June, you're didn't makeany money. No, they didn't57600:43:51,159 --> 00:43:53,360tell you how to mitigate the risks. They didn't tell you can still make57700:43:53,400 --> 00:43:57,159some money while the markets gone.They didn't give you options, you know57800:43:57,199 --> 00:43:59,800what I mean. And now themarket goes out a little bit and they57900:43:59,840 --> 00:44:01,039think their heroes. Yeah, butI mean, he's a career politician,58000:44:01,079 --> 00:44:04,960So that's just what he's done forhis whole career. Say whatever he needs,58100:44:05,000 --> 00:44:07,119getting post, get people behind him, and then do whatever he wants.58200:44:07,960 --> 00:44:09,840It's becoming evidence, especially with HunterBiden and all that stuff coming out58300:44:10,440 --> 00:44:15,920interest rates more and more coming outof interest rates popping up. Really he58400:44:15,000 --> 00:44:19,639took it really hit goal goal downtwenty bucks on the week to nineteen forty.58500:44:20,199 --> 00:44:22,320We know there's an inverse relationship there. How that's an inflation hedge,58600:44:22,360 --> 00:44:29,119I don't know, but um atreasury the difference between the ten year and58700:44:29,199 --> 00:44:34,079the two year narrow todd down toa point seven. The long end of58800:44:34,199 --> 00:44:37,039the curve got a huge bid thisweek, and uh it was it was58900:44:37,119 --> 00:44:40,400interesting. I know we had aTLT and it just got killed throughout the59000:44:40,400 --> 00:44:45,280week. Rally big on it didit did? We saw the rates drop,59100:44:45,440 --> 00:44:47,400which I don't know why the ratesdropped on Friday. Maybe this labor59200:44:47,519 --> 00:44:52,360reporter or something got killed. Whenjobs number, yeah, we had a59300:44:52,440 --> 00:44:54,760huge jobs number, is why therates dropped on Friday, right, one59400:44:54,880 --> 00:45:00,440hundred and eighty seven thousand new jobs, which was below expectations, and that59500:45:00,639 --> 00:45:02,719people got investors saying, oh okay, in restrict are done going up.59600:45:04,119 --> 00:45:07,400But look, I mean the bestof the people to understand, if we59700:45:07,440 --> 00:45:12,079have unemployment at three point five,you do not have an economy that's going59800:45:12,119 --> 00:45:14,639to really slow down. Everyone hasa job, everyone has money to spend.59900:45:14,960 --> 00:45:16,199The only way you get inflation toreally come down to two percent.60000:45:16,280 --> 00:45:20,480You need people to lose their jobs. Now, wait till next Thursday when60100:45:20,559 --> 00:45:24,679we get the CPI number for July. That's gonna be really interesting because we've60200:45:24,719 --> 00:45:29,840been benefiting from a plunge in oilprices. Yeah. Now, real estate60300:45:29,920 --> 00:45:34,880has not gone south, rent hasnot gone south. Uh, oil prices60400:45:34,960 --> 00:45:38,440are going north hard. I'm thinkingthat that three percent probably is going to60500:45:38,519 --> 00:45:43,599see a tick up, not justtime the next month after. No to60600:45:43,679 --> 00:45:46,880beat this month because it's for July, now keeping they're always behind, Dave,60700:45:47,760 --> 00:45:51,800that's I know, but it's itis the CPI report for July,60800:45:52,440 --> 00:45:55,360so and and oil was rising mostof the month. Yeah, we'll keep60900:45:55,360 --> 00:46:00,559in mind that the CPI that JeromePowell really cares about is the CPI.61000:46:00,679 --> 00:46:04,559It's the one without the food andthe energy. So he really cares about61100:46:04,559 --> 00:46:08,119his personal consumption, right, whichis definitely a whole different number than nobody61200:46:08,159 --> 00:46:12,199talks about it. But like yousaid, I mean, we homes that61300:46:12,239 --> 00:46:15,280are actively listed are down twenty pointeight percent year over year. So when61400:46:15,320 --> 00:46:20,960you have an inventory of just continueddeclining, the supply to demand dynamics in61500:46:21,000 --> 00:46:23,960the housing market keeps that market going. And then also, like you said,61600:46:24,000 --> 00:46:27,440with the horizon oil prices, it'spretty hard to see that we're going61700:46:27,519 --> 00:46:30,280to see a decline in the headlinenumber. Homes in decent areas still selling61800:46:30,400 --> 00:46:37,440quickly with multiple offers. Yeah,because of inventory. Yeah. Own builder61900:46:37,519 --> 00:46:40,920stocks hitting new all time high.Those concessions are just killing it form by62000:46:40,960 --> 00:46:44,760anything. That's where you have togo, Right's because they were building so62100:46:44,840 --> 00:46:47,199many new home developments for the lastcouple of years and then it's did they62200:46:47,320 --> 00:46:50,440did die off? But now they'recoming back because that's all there is.62300:46:50,719 --> 00:46:54,039Yeah, it's fascinating. The UShomeowner vacancy rate dip down to point seven62400:46:54,079 --> 00:46:59,880percent. That's the lowest level sinceCommerce Department started to even record this STATA62500:47:00,159 --> 00:47:02,639in nineteen fifty six. So,I mean, just there's just no vacant62600:47:02,719 --> 00:47:06,760homes out there, right, everybodyyou love with their mortgage rate? Yep,62700:47:07,320 --> 00:47:10,039exactly, not so much. We'regonna take a hard break here.62800:47:10,079 --> 00:47:15,199We'll be back to the second hourof the money Matterchell. Remember this is62900:47:15,239 --> 00:47:20,079a very very good time to understandthis risk in this market, the economy63000:47:20,119 --> 00:47:22,880and everything going on, especially forthe next couple of months. Midta gate63100:47:23,159 --> 00:47:28,880your risk and if you don't understandhow to mitigate your risk. Then you63200:47:29,000 --> 00:47:30,719need to plan for it by comingin and seeing us. We'll give you63300:47:30,760 --> 00:47:37,559a free, free, non cost, complimentary financial plan so you can be63400:47:37,639 --> 00:47:40,679on track to do all the thingsyou want to do. Just give us63500:47:40,719 --> 00:47:53,159a call. We'll be right back. Say it's all. Welcome back.63600:47:53,199 --> 00:47:57,159You're listening to the second hour ofthe Money Matters Show. I'm Dylan Greenberg.63700:47:57,199 --> 00:48:00,119I'm here with Dean Greenberg, ToddClick, and Dave Sherwood. We're63800:48:00,159 --> 00:48:02,960getting got our new advisor on herea little bit later, Sebastian Borsini past63900:48:04,079 --> 00:48:07,000sixty five because a full blown licensedadvisor now. So we'll get them on64000:48:07,000 --> 00:48:09,679the radio show talking about some stuffhe found throughout the week. But before64100:48:09,679 --> 00:48:13,079we get going on that, wehad some numbers for you just tuning in.64200:48:13,400 --> 00:48:15,320The Dow was down one percent,the SMP five hundred was down two64300:48:15,360 --> 00:48:19,880point three percent for the week.In the NAZAC was down two point eight64400:48:19,920 --> 00:48:22,559percent, and the small cap RUSTLEtwo thousand was down one point one percent.64500:48:22,639 --> 00:48:27,199And then the equal weighted SMP fivehundred, which is the RSP,64600:48:27,880 --> 00:48:30,800was down two percent for the week. Something we haven't said it in a64700:48:30,920 --> 00:48:35,920long long time. Down across theboard down every day this month. Yep,64800:48:37,360 --> 00:48:39,119we've been expecting it. Yeah,I mean, it's been too much64900:48:39,159 --> 00:48:43,920going on, but it's been Thesummer rally was huge. We're coming into65000:48:44,000 --> 00:48:47,519a historically bad time of the year. August is up usually slightly, and65100:48:47,599 --> 00:48:51,840then September is usually one of theworst months. So we might see a65200:48:51,880 --> 00:48:53,280little break in this rally that we'vebeen seeing for the last few months.65300:48:53,320 --> 00:48:57,639But the five consecutive months higher,that's pretty durn rare. Well, this65400:48:57,880 --> 00:49:01,719Magnificent seven took a break yea.But Amazon took over and on Friday went65500:49:01,800 --> 00:49:06,039up nine percent because they just blewall the earnings reports out of the water65600:49:06,559 --> 00:49:09,920and their AWS is stab stabilizing andeverything like that. So liking, But65700:49:10,280 --> 00:49:15,039for so the month ended what middleof the week, Tuesday, So then65800:49:15,039 --> 00:49:17,719we have some numbers for that too. The Communications ETF, which is XCELC65900:49:19,280 --> 00:49:22,519was up five point seven percent forJuly. It's up forty four percent for66000:49:22,599 --> 00:49:25,519the year, as leading all theright and we were the communications, of66100:49:25,599 --> 00:49:30,880course is just another technology. Itis because it includes meta, it includes66200:49:30,920 --> 00:49:32,719companies like it's stupid. It's stupid, and that's why I stopped so much66300:49:32,760 --> 00:49:36,840but you keep saying stupid. Itis stupid, but not when you think66400:49:36,880 --> 00:49:39,440of communications, it's just not ation. Okay, but you're using an arcaic66500:49:39,639 --> 00:49:45,440model, but you're using an arcakecommit communications model because that's all you knew.66600:49:45,719 --> 00:49:49,039But communication, how do you communicateat Verie? Well, they're in66700:49:49,119 --> 00:49:51,519there, But the thing is tooyou need meta in there because they own66800:49:51,599 --> 00:49:55,639WhatsApp, which is a huge communicationsit's huge, absolutely Facebook. I guess66900:49:55,719 --> 00:50:00,320my point is it's it's redundant,it's it forms in line with the with67000:50:00,519 --> 00:50:05,880the technology ETF. So what's thepoint. Why not just quit it?67100:50:06,039 --> 00:50:08,639Just cancel it, go back toten, can't get rid of it.67200:50:09,679 --> 00:50:15,639The next one's technology Technology, whichwas help forty three point nine percent for67300:50:15,719 --> 00:50:17,920the year, so slightly less.So I think Verizon an eight and T,67400:50:19,039 --> 00:50:20,679which they're be a getting killed thisyear. So I don't know how67500:50:20,719 --> 00:50:22,480communication is there. They're not they'renot doing too much in that ETF.67600:50:22,599 --> 00:50:27,320If they're think in that way,then consumer discretionary, which is interesting,67700:50:27,440 --> 00:50:30,320is up thirty five point two percentfor the year. That's the third highest67800:50:30,360 --> 00:50:32,239one, which is interesting. Imean, it's been like we said,67900:50:32,280 --> 00:50:35,719but maybe that's part of the reasonthe credit card debt keeps going up.68000:50:36,000 --> 00:50:37,760All discretionary means that you know,things that you don't have to have,68100:50:37,960 --> 00:50:43,880and in a period where the economyis weakening, you would see that weakening68200:50:44,400 --> 00:50:47,159exactly. Consumers not thinking the economy'sweakening. Yeah, I mean they think68300:50:47,199 --> 00:50:50,239in that. But also, likewe've been saying, is credit card debt68400:50:50,360 --> 00:50:52,920is increasing, so you're buying discretionaryitems on your credit card. And just68500:50:53,000 --> 00:50:57,119leave. Before we leave the SMP, I just wanted to say that the68600:50:57,280 --> 00:51:00,000SMP had a long time where ithad over two months without a one percent68700:51:00,119 --> 00:51:05,800drop in a single day, andwhen that happens, um the SMP has68800:51:05,840 --> 00:51:09,039gained fourteen point eight percent on averageone year later since nineteen eighty. So68900:51:09,280 --> 00:51:14,719there's there's some you know, historicaldata showing that we had some real big69000:51:14,840 --> 00:51:17,159runs even though we had finally havea one percent drop in a single day.69100:51:19,239 --> 00:51:25,440It looks good historic radio change,right right, I deal, the69200:51:25,519 --> 00:51:29,840ones that are lagging are the utilities. They're down three point four percent for69300:51:29,880 --> 00:51:31,840the year, and then healthcare isdown point five percent for the year,69400:51:31,880 --> 00:51:36,000and those are the only two thatare down. The interesting thing about this69500:51:36,079 --> 00:51:39,440whole thing that we keep track ofevery month is these SMP sectors. Back69600:51:39,480 --> 00:51:44,079in May, half of them werenegative. Now we're at the end of69700:51:44,159 --> 00:51:46,880July only two were negative and oneis barely negative. It saw a huge69800:51:46,960 --> 00:51:51,159rally through June and July, justacross the board. And you do you69900:51:51,239 --> 00:51:55,159do expect utilities to lagging and writinginterest trading environment because they generally have fairly70000:51:55,239 --> 00:52:04,119significant debt YEP. For the DowDow, the Dow is CRM has been70100:52:04,199 --> 00:52:08,480leading this charge all year. They'reof seventy percent for the year yep,70200:52:08,760 --> 00:52:12,239right, and they lagged it alllast years. Just the dogs of the70300:52:12,280 --> 00:52:15,679Dow. That's still staying true.Just like dead lad. They were dead70400:52:15,760 --> 00:52:17,920last, lad, if I remembernow they are running away with it.70500:52:19,199 --> 00:52:22,519Walgreen's boots ALIAS. They're dead lastthis year, the down eighteen percent.70600:52:22,599 --> 00:52:24,320So if you're going with the theoryof dogs of the doo and they're down70700:52:24,360 --> 00:52:28,559at the end of the year,you'll see them jump next year. That's70800:52:28,599 --> 00:52:31,360just how That's what the dogs ofthe Doo means. Walgreens and Walgreens and70900:52:31,480 --> 00:52:37,199CVS. Walgreen is of course theworst performing stock in the Dow. CVS71000:52:37,199 --> 00:52:42,559doing just as badly. H thestore traffic is waning because of COVID.71100:52:42,719 --> 00:52:45,920You know, they both gained someground on Wednesday after CBS reported better than71200:52:45,960 --> 00:52:52,159the expected results. Both stocks tradewith single digit pees, so it was71300:52:52,239 --> 00:52:55,880just ridiculously low, less than halfof what the overall market normally is,71400:52:57,199 --> 00:53:00,960about a third of what the overallmarket is now. The CBS dividend is71500:53:01,039 --> 00:53:05,719three percent, the Walgreens dividend issix percent. So you look at these71600:53:05,800 --> 00:53:09,079and go single digit pees with highdividends, why how to look at those?71700:53:09,239 --> 00:53:15,800Right? One problem Neither of thosecompanies are making enough income to cover71800:53:15,920 --> 00:53:20,199the dividend. Neither of those companiesthat have enough net income to cover the71900:53:20,320 --> 00:53:22,840dividend payout. So the dividend,which is going to hold you up right,72000:53:23,440 --> 00:53:27,719is just as safe as the nextboard meeting. Wow. So I72100:53:27,800 --> 00:53:30,800think that's one of the things thatmaybe weighing on those two companies is the72200:53:30,920 --> 00:53:34,840thought that the dividend might have tobe cut. You see Carl Icon's company,72300:53:35,119 --> 00:53:38,039their congomerate, cut their dividend inhalf on Friday at their earnings report72400:53:38,119 --> 00:53:42,719call, and their stockshout twenty threepercent, which I mean they have a72500:53:42,760 --> 00:53:45,480thirty one percent dividend, So itmakes sense that they cut it. Yeah,72600:53:45,519 --> 00:53:46,320I was wondering. We looked atit a couple of weeks ago and72700:53:46,360 --> 00:53:49,920it was that high. We're wonderingwhy, And I guess they were too,72800:53:49,960 --> 00:53:52,320because they cut it in a half. Well, you know what it72900:53:52,440 --> 00:53:55,679could have been is when that thatactivists came out and was trying to mess73000:53:55,760 --> 00:54:00,719with icon enterprises. Maybe what theydid is raised the it and to keep73100:54:00,800 --> 00:54:06,880investors around to you know, compensatefor that extra level of risk. And73200:54:07,039 --> 00:54:08,800now that it's kind of that's goneaway. It's weird. Though it was73300:54:08,960 --> 00:54:14,519constantly growing for the last fifteen years, the dividend or nothing astronomical like.73400:54:14,599 --> 00:54:16,719There wasn't a jump like that fromwhat I saw. Interesting, it was73500:54:16,760 --> 00:54:22,039a battle of titans when the shortseller went after I can it wass You73600:54:22,119 --> 00:54:25,280know, we've we've been talking aboutthe equal weighted for a while on this73700:54:25,400 --> 00:54:30,760show, and right now there's neverbeen a bigger divergence between the SMP five73800:54:30,880 --> 00:54:35,840hundred and the equal weighted SMP fivehundred, meaning the performance between the two.73900:54:36,159 --> 00:54:38,840The last time we've seen this bigof divergence it happened back in twenty74000:54:38,920 --> 00:54:44,360twenty, and the subsequent rotation washuge. What I mean by that is74100:54:44,440 --> 00:54:50,320the S ANDP equal weighted SMP outperformedthe regular SMP by a lot following that74200:54:51,199 --> 00:54:55,480divergence. So we could see thatthe the smaller names in the SMP start74300:54:55,559 --> 00:55:00,719to perform better overall than the biggernames because the bigger names have just absolutely74400:55:00,800 --> 00:55:04,719killed it. I mean the sevenMagnificent seven that we've talked about that they74500:55:04,760 --> 00:55:07,239make up now thirty percent of theSMP five hundred, Right, that's a74600:55:07,360 --> 00:55:10,360lot of risk that you when youinvest in the SP five hundred, now74700:55:10,360 --> 00:55:13,880you're thirty percent of it's going tojust seven companies. Yeah, I mean74800:55:14,320 --> 00:55:16,079SP five hundred is up seventeen percentfor the year, and the RSP is74900:55:16,119 --> 00:55:20,880up seven percent. So the SMPfive hundred with the weights is up temple75000:55:21,000 --> 00:55:23,159more percent and that's due to themagn If it's in seven just killing it.75100:55:23,400 --> 00:55:27,320So behind three months ago, whatindex did you not want to have75200:55:27,480 --> 00:55:30,079anything to do with the doll right, right? And for the last three75300:55:30,159 --> 00:55:34,440months it's led the way it hasand it's still but that's the only up75400:55:34,440 --> 00:55:37,400six percent for the year. Ithink it's just more an indicator of you75500:55:37,480 --> 00:55:40,719want to look for things that areout of favor, you start chasing the75600:55:40,800 --> 00:55:45,199things that are in favor, thatthe Apples and the Amazons and the in75700:55:45,360 --> 00:55:47,519videos. You're not gonna want todo that. You want to look behind75800:55:47,599 --> 00:55:52,599the rocks and under the trees andfor the high quality companies that have just75900:55:52,679 --> 00:55:54,800been ignored. There. We willbe buying opportunities for companies like that,76000:55:54,960 --> 00:55:57,960like in Vidio, Microsoft. Imean, they're not going to run up76100:55:58,000 --> 00:56:00,119forever. They're gonna have pullbacks likewe've seen the last couple of weeks,76200:56:00,320 --> 00:56:02,840and there will be time to getinto But it's not a it's not a76300:56:02,960 --> 00:56:07,239full one hundred percent jump in it'sbut if you want to get your feet76400:56:07,239 --> 00:56:09,039well with it, there will beopportunities to start building a position. Right,76500:56:10,000 --> 00:56:13,679Apple drop six percent on Friday,so yeah, I mean last week76600:56:14,000 --> 00:56:16,400we bought some Microsoft for clients whenthey had their big drop from learnings.76700:56:16,920 --> 00:56:21,119Just different times to buy in,right, it will be too don't be76800:56:21,239 --> 00:56:23,519too quick to act though. Ifthe market is due for a pullback and76900:56:23,599 --> 00:56:27,519it needs a pullback of five toten percent, I think we've had a77000:56:27,559 --> 00:56:30,840pullback. What are we off atthe highs of two and a half percent77100:56:31,000 --> 00:56:37,000something like that. It's not like, yeah, two point eight percent off.77200:56:37,119 --> 00:56:40,320What's your favorite UM stock that hasn'tbeen talked about? For me,77300:56:40,519 --> 00:56:45,519I'm kind of I like Starbucks.Well, Starbucks is a great name.77400:56:45,639 --> 00:56:50,000Yeah, that's a great name,and they're they're exposure to China, and77500:56:50,239 --> 00:56:57,079you know, that's that's another umbit of of false information or ums misinformation77600:56:57,159 --> 00:57:00,400we've given on the show. Umis that is their number one customers.77700:57:00,480 --> 00:57:05,360Not I was looking through some dataand the US is still the number one77800:57:05,440 --> 00:57:08,840customer. Well we read that.The reason is we were fastest growing.77900:57:09,320 --> 00:57:13,360That's why it kind of got misconstruedthat way. This now that it became78000:57:13,440 --> 00:57:16,599the fastest growing country. They nowbuild a new Starbucks every nine hours in78100:57:16,679 --> 00:57:20,719China and it's every twelve hours inthe US. Well, that doesn't mean78200:57:20,960 --> 00:57:23,320China was always building one every ninehours. They just overtook the US as78300:57:23,360 --> 00:57:29,480the fastest growing Starbucks area. Gotit. So every every week now seems78400:57:29,519 --> 00:57:32,840like I have a little EV story. So I ended up have like a78500:57:32,960 --> 00:57:36,679come up with a little name likeDave's EV Corner or something like that.78600:57:36,880 --> 00:57:38,719You know. Um, hey,so this week I'm gonna talk a little78700:57:38,719 --> 00:57:42,920bit about you know, we knowthat range is a problem. My friend78800:57:43,000 --> 00:57:47,079Mike shared an article that Toyota hascome up with a solid state battery that78900:57:47,239 --> 00:57:52,360has a range of seven hundred andfifty miles and we'll we're charging in ten79000:57:52,400 --> 00:57:55,559minutes. That's an absolute game changer. They expect it to be available in79100:57:55,639 --> 00:58:00,719twenty twenty five. Toyota, ofcourse, is the world's large just carmaker,79200:58:00,840 --> 00:58:05,360and up until recently they pretty muchhave been favoring hybrid. Haven'ts talked79300:58:05,400 --> 00:58:07,559a lot about electric, They stayedaway from it. Yep. April of79400:58:07,639 --> 00:58:12,320this year, a guy by thename of Koji Sato became the CEO of79500:58:12,400 --> 00:58:15,599Toyota, and they're going all electric. They're going all in. He said,79600:58:15,639 --> 00:58:19,599the hybrid is not the way togo electric. And I'm not arguing79700:58:19,719 --> 00:58:22,320hybrid electric. I'm just saying whatToyoda is saying. Toyota has been hybrid79800:58:22,400 --> 00:58:25,119the whole way. They've been verythat's interesting. Yeah, brand new CEO79900:58:25,159 --> 00:58:28,880all of a sudden, the goone hundred percent electric CEO. Last year80000:58:29,000 --> 00:58:30,840they were one hundred percent against electric. They said it's not the way right80100:58:30,920 --> 00:58:34,880now. Hybrid is the first stepin doing that right And the guy that80200:58:35,000 --> 00:58:38,159he replaced was one was a relativeof the founder of Toyota, and he's80300:58:38,199 --> 00:58:42,280gone now. And this new guyis on as of April of twenty three80400:58:42,400 --> 00:58:45,519any relevant And he's he's, he'sAnd are they part of the family or80500:58:45,599 --> 00:58:49,719is he just a new new thisis a non family member and he's he80600:58:49,800 --> 00:58:53,760says we're going electric. Interesting Andagain that's a major change for for Toyota.80700:58:54,079 --> 00:58:57,960And you know, I have amost you know, I have a80800:58:58,039 --> 00:59:00,840Tesla and I had for about thirtydays. I'm brand new to it.80900:59:01,159 --> 00:59:06,039And uh, you know, theTesla's kind of like Trump. You either81000:59:06,199 --> 00:59:08,559love it or you love to hateit. Right, And I said,81100:59:08,599 --> 00:59:12,719there was a story last week aboutthis seventy four year old guy in Phoenix81200:59:12,760 --> 00:59:15,639who got stuck in his Tesla andcouldn't get out and almost died. You81300:59:15,719 --> 00:59:19,719know, his battery had gone.Dad, And I saw a tesla that81400:59:20,119 --> 00:59:24,840um got it hit the curb,went over someone's wall, went through the81500:59:24,920 --> 00:59:29,119wall, and then landed in someone'spool. Well, let me finish it,81600:59:29,239 --> 00:59:30,880seventy four year old guy. Right, the seventy four year guy supposedly81700:59:30,960 --> 00:59:35,599locked in his car because his batterywent Dad couldn't get out nearly died because81800:59:35,599 --> 00:59:38,800of the heat. There's a there'sa manual door handle right next year,81900:59:38,880 --> 00:59:43,800left arm. So that's just stupid. That's just the stupid jury. So82000:59:44,239 --> 00:59:45,320and there's lots of those, because, like I say, you either love82100:59:45,360 --> 00:59:47,840it or you love to hate it. And then those that love it are82200:59:47,880 --> 00:59:51,000talking about, oh yeah, Ihave no problem. I could drive to82300:59:51,119 --> 00:59:53,159la you know, No you can't. You gotta stop, stop, stop.82400:59:54,280 --> 00:59:59,960So I'm neither of those. Igot it because I wanted to expire82501:00:00,360 --> 01:00:07,679something different in the final hours ofmy life, you know. And and82601:00:07,800 --> 01:00:10,119it's it's great. It's great fun. You know, it's great fun.82701:00:10,440 --> 01:00:14,360I'm not a lover. I'm nota hater. I see there are definitely82801:00:14,440 --> 01:00:17,239problems, but it's it's pretty darncool. Um. You know. I82901:00:17,440 --> 01:00:22,199leased it though, because I rememberin nineteen eighty nine, I owned a83001:00:22,320 --> 01:00:29,480Mercedes and Lexus came out and theprice of that Mercedes dropped forty percent in83101:00:29,519 --> 01:00:34,519a week because everybody wanted the Lexus. And I'll tell you now, if83201:00:34,559 --> 01:00:37,440you're if you're if you're the ownerof electric car company. And Toyota comes83301:00:37,480 --> 01:00:42,920out with a nice looking SUV thatcan do seven hundred and fifty miles and83401:00:43,000 --> 01:00:45,800recharge in ten minutes. You're gonnawant it. Toyota might come out with83501:00:45,800 --> 01:00:49,719a more affordable electric car two likethey did with the Prius. Yeah.83601:00:50,000 --> 01:00:52,639Yeah, And if they come outwith that, I think Tesla stock will83701:00:52,679 --> 01:00:55,440get cut, probably twenty five percent. But it is funny. In thirty83801:00:55,519 --> 01:01:01,239days, I have had so muchlove and so many horror stories. It's83901:01:01,280 --> 01:01:06,159just it's like Trump, you eitherlove them or you love to hate them.84001:01:06,400 --> 01:01:09,079And that's the way it is withTesla. Uh, It's it's crazy.84101:01:09,559 --> 01:01:15,920They now have a lawsuit filed againstthem last week by three consumers in84201:01:15,039 --> 01:01:22,360California, because we all know thatthe mileage that is advertised is not achievable.84301:01:22,639 --> 01:01:27,400It's if you can get sixty percentsixty seventy percent of what they say84401:01:27,480 --> 01:01:30,119you can get, that's pretty good, and up till now we just kind84501:01:30,119 --> 01:01:31,639of all say, yeah, well, we all know that it can't go84601:01:31,800 --> 01:01:36,639that far. But these guys said, hey, this is false advertising.84701:01:37,199 --> 01:01:39,800You wouldn't have been able to sellthe cards without it, and or you84801:01:39,840 --> 01:01:44,320would have had to sell them cheaper. So they filed a suit, which84901:01:44,400 --> 01:01:47,480they hope will be a class actionallawsuit against Tesla for their mileage claims.85001:01:47,519 --> 01:01:52,519Now the problem with that as Isee it, and I give the credit85101:01:52,599 --> 01:01:55,199to Ron, our our listener,Ron, who said, yeah, but85201:01:55,360 --> 01:02:01,920it's not Tesla who sets the mileageratings, it's the EPA. So it's85301:02:02,159 --> 01:02:06,480they're really suing the wrong person.Don't you think they probably ought to be85401:02:06,519 --> 01:02:09,360suing the EPA as opposed to Tesla. We all know Tesla's mileage claims our85501:02:09,599 --> 01:02:15,840our joke, but they don't sendhim the APA does Did they trick the85601:02:15,880 --> 01:02:21,400EPA? I don't know. Maybewho? All right, Welcome Sebastan,85701:02:21,639 --> 01:02:24,480our newest advisor, Sebastian Borsini.He has a little bit of information on85801:02:24,760 --> 01:02:28,400a new thing coming out. It'sa new provision coming out in twenty twenty85901:02:28,440 --> 01:02:30,920four that has to do with thefive twenty nine plans. If they're is86001:02:31,039 --> 01:02:35,000unused money in there? What yougot Sea Bass so I was doing.86101:02:35,039 --> 01:02:37,679That's his nickname too, by theway, Yeah Bass, My name is86201:02:37,679 --> 01:02:42,599Sebastian Borsini. Some people do callme Sea Bass. I just graduated from86301:02:43,199 --> 01:02:45,880I was born, born and raisedhere in Tucson, Arizona. Just graduated86401:02:45,920 --> 01:02:49,400from the University of Arizona. UM. What Todd might argue is not the86501:02:49,480 --> 01:02:52,079best college in the state Gold Devils. Yeah, everybody knows that he doesn't86601:02:52,079 --> 01:02:57,719like Arizona graduated with an economics degree. I got a little bit of background86701:02:57,719 --> 01:03:00,039about a five two nine plan.Uh, five two nine plan is not86801:03:00,079 --> 01:03:07,639a retirements account, but rather assavings a vehicle designed to meet future educational86901:03:07,719 --> 01:03:10,199expenses. These there's many benefits ofhaving a five two nine plan, a87001:03:10,239 --> 01:03:15,920few of which include tax breaks.Contributions are made with after tax dollars and87101:03:15,039 --> 01:03:21,480any earnings grow tax deferred qualified withdrawsthat are used for these educational purposes or87201:03:21,599 --> 01:03:25,199tax free and five two nine plantshave also have higher contribution limits than other87301:03:25,239 --> 01:03:30,880accounts. So when we saw adifferent provision come out right, where in87401:03:31,000 --> 01:03:37,639twenty twenty four, we're gonna havea different tax implication that gets assessed to87501:03:37,679 --> 01:03:42,760these five twenty nine's correct? Yes, correct? So what does that look87601:03:42,800 --> 01:03:45,760like? So this is going tobe adopted in twenty twenty four. This87701:03:45,840 --> 01:03:49,719will allow you to roll unused moneyfrom the five two nine plan into a87801:03:49,800 --> 01:03:52,360roth IRA. Yeah, but withthat rolling it into the plan, you87901:03:52,480 --> 01:03:58,440have to it's the annual maximum contribution, correct, correct? So you do88001:03:58,599 --> 01:04:00,840have two attests. So like ifyou have one hundred thousand dollars in the88101:04:00,880 --> 01:04:02,599five twenty nine plant, you can'troll that all over at once. Correct.88201:04:02,679 --> 01:04:05,679You still have to adhere to theYEP and then what was the max88301:04:06,280 --> 01:04:11,159and the max lifetime contribution. That'sthe most you can roll over from a88401:04:11,159 --> 01:04:15,920five twenty nine plant into the rothEyre correct. So that's going to be88501:04:15,000 --> 01:04:17,800extremely beneficial to get use out ofthe money if it's just sitting there,88601:04:18,280 --> 01:04:23,000which a lot of the time.If if you're parents and you've had a88701:04:23,079 --> 01:04:26,800kid and you set up this,you set up this you know, five88801:04:26,880 --> 01:04:29,880two nine plan, and your kidends up not going to college or they88901:04:30,000 --> 01:04:33,800end up getting a scholarship scholarship likedid um, this just gives you the89001:04:33,880 --> 01:04:39,199opportunity to not take a tax hitbecause you will have a ten percent hit89101:04:39,800 --> 01:04:45,920if if you take out for otherthan if you have a if you have89201:04:45,159 --> 01:04:48,320one kid and they end up gettinga scholarship or decided to go started to89301:04:48,400 --> 01:04:53,159work in you get at least theycan get benefit out of this exactly.89401:04:53,280 --> 01:04:56,000Let's say, for example, you'veaccumulated a five to twenty nine that has89501:04:56,039 --> 01:04:59,559fifty thousand dollars, your kid endsup being a superstar does not need any89601:04:59,599 --> 01:05:01,400of it. Well, guess what, you can only roll thirty five thousand89701:05:01,480 --> 01:05:05,000of that fifty thousand into a rothira. The new roth iras are going89801:05:05,079 --> 01:05:09,199to be in the name of thekid or the parent. It'll be rolled89901:05:09,239 --> 01:05:11,719over into the name of the kid. The beneficiary was on the five two90001:05:11,840 --> 01:05:15,199nine. The reason that's so bigis because now that kid can use that90101:05:15,480 --> 01:05:20,000out of the roth ira for thingslike qualified expenses, meeting house, first90201:05:20,039 --> 01:05:23,920time home buyers. Yeah, andthen they can also they'll be able to90301:05:23,960 --> 01:05:27,360take out any contributions that were init, Whereas if it's just stuck into90401:05:27,400 --> 01:05:30,800five twenty nine and they try totake out for a house that's not gonna90501:05:30,840 --> 01:05:32,960work, you're gonna get charged tenpercent tax penalty. So in the past90601:05:33,039 --> 01:05:36,480and until the end of this year, up until twenty twenty four, you'd90701:05:36,519 --> 01:05:40,239really had you're very limited on theoptions on what you could do with that90801:05:40,320 --> 01:05:43,440account. If your kid decided notto go to college or have a scholarship,90901:05:43,559 --> 01:05:45,360it was pretty much just pass itdown to another kid. You're able91001:05:45,400 --> 01:05:49,119to transfer the counts into another beneficiary. If you don't have another kid,91101:05:49,199 --> 01:05:53,920then it's kind of just sat thereand you probably just let let it sit91201:05:53,960 --> 01:05:57,480in the accounts to avoid that tenpercent tax penalty. Yeah. A couple91301:05:57,559 --> 01:06:00,159other things with the five to nineplan if you are looking to do it,91401:06:00,400 --> 01:06:02,840is that you can have up toseventeen thousand dollars. There's no limits91501:06:02,880 --> 01:06:05,639on the contribution you can do ina five twenty nine plan, but there91601:06:05,719 --> 01:06:10,599is a seventeen thousand dollar contribution limitin the sense of a gift, and91701:06:10,760 --> 01:06:13,079you can do that. Say you'remarried, you can do your husband and91801:06:13,119 --> 01:06:15,039wife can boast do that. Soit can be thirty four thousand dollars gifted91901:06:15,119 --> 01:06:17,400each year for it. Well,that's the max for that, but there92001:06:17,519 --> 01:06:20,320is no contribution limit. You alsowant to keep in mind that in a92101:06:20,400 --> 01:06:25,920roth IRA you have a multitude moreof investment options than you do in a92201:06:25,960 --> 01:06:29,679five twenty nine plan. And sowhen it comes to places where we are92301:06:29,719 --> 01:06:31,880in the markets right now, whenyou're there time where we need to be92401:06:31,960 --> 01:06:35,599mitigating risk right you can't really bedoing that in a five twenty nine there's92501:06:35,599 --> 01:06:39,599not many options. It's really justmutual funds. So when you can roll92601:06:39,679 --> 01:06:42,119that into a roth ira, evenif the kid doesn't need it now,92701:06:42,599 --> 01:06:45,440it can still be managed better thanwhat it otherwise. And this is also92801:06:45,480 --> 01:06:47,800if the five twenty nine plan hasto be open for at least fifteen years92901:06:48,000 --> 01:06:51,960for this for you to be ableto roll any money over into the roth93001:06:53,039 --> 01:06:56,480Ira. So a lot of timenow and what we suggest a lot of93101:06:56,519 --> 01:06:59,519the time is just open and brain. If you don't already have a roth93201:06:59,599 --> 01:07:01,960Ira, open a roth Ira inyour name when your kid is young,93301:07:02,559 --> 01:07:05,519grow it that way, because thenyou still can take out that money that93401:07:05,639 --> 01:07:10,519principle and use it for college expenseswithout any penalties, without any taxes because93501:07:10,519 --> 01:07:13,000you already paid the money on thetaxes. But then if they end up93601:07:13,000 --> 01:07:16,400getting a scholarship, then you endup having the roth Ira money go ahead,93701:07:16,480 --> 01:07:18,480right, I mean, I meanif you compare that to just opening93801:07:18,559 --> 01:07:21,679up a regular brokerage account and growingthe money for the kid each year,93901:07:21,679 --> 01:07:25,679you're paying capital gains, whereas ifyou have it in a roth yeah,94001:07:25,719 --> 01:07:30,039you pay taxes still, but youhave tax deferred growth. Right, And94101:07:30,159 --> 01:07:31,400when you take the money out,you're not going to be assessed an extra94201:07:31,480 --> 01:07:35,880penalty because it's used for qualified educationexpenses. So your kid can take advantage94301:07:35,920 --> 01:07:39,880of tax deferred growth. While you'renot going to get that in a brokerage94401:07:39,880 --> 01:07:42,360account. And say you have akid that's sixteen years old and just started94501:07:42,440 --> 01:07:45,400working and they make sixty five hundreddollars a year, you can contribute in94601:07:45,519 --> 01:07:50,000their name sixty five hundred dollars intotheir roth IRA for them because they're working.94701:07:50,039 --> 01:07:53,559They made the max. That's amax for the twenty twenty three.94801:07:53,679 --> 01:07:56,840But it's a good way to startgetting your kid and interested in investing.94901:07:57,280 --> 01:08:00,800Also, the Financial Plan helps alot of parents that we mean, dyllancye95001:08:01,559 --> 01:08:06,039really understand how and where they needto be putting money, how much money95101:08:06,199 --> 01:08:11,840where right. There's a lot ofdifferent investment options. But also inflation is95201:08:11,880 --> 01:08:15,760a hard thing to calculate, right, and most people don't realize that.95301:08:15,159 --> 01:08:19,600You know, college expense inflations aroundsix percent a year. It's not a95401:08:19,720 --> 01:08:25,119normal inflation rate. Right. Soif if we're planning to plan for college95501:08:25,159 --> 01:08:28,640expenses for someone who's two years old, and then we got sixteen years of95601:08:28,720 --> 01:08:31,720growth at six percent a year,imagine what that cost is going to be.95701:08:32,159 --> 01:08:34,439We can show you that in theFinancial Plan. Not only that,95801:08:34,560 --> 01:08:40,359we can show you how putting moneyaway growing at an average rate of return95901:08:40,640 --> 01:08:45,079will lead to you either being ableto satisfy some all of that college expense96001:08:45,439 --> 01:08:47,760or maybe it's not doable, becausethen it puts yourself in a bad scenario96101:08:47,840 --> 01:08:51,680for retirement. I think a lotof parents have this goal of funding their96201:08:51,760 --> 01:08:55,920kids expenses for college, which isa great noble goal, but if it96301:08:56,000 --> 01:09:00,279means you not having a retirement,it needs to be considered right. And96401:09:00,359 --> 01:09:01,680that's that one thing where the planis we can kind of jump to the96501:09:01,800 --> 01:09:05,279future, not perfectly, but wecan get a fuzzy picture what the future96601:09:05,279 --> 01:09:09,359will look like if you make thisdecision now or if you don't. That's96701:09:09,399 --> 01:09:12,319where the financial plan adds a lotof benefit for people. Yeah, if96801:09:12,319 --> 01:09:14,880any of this interest you, Ifyou have any questions on the roth IRA96901:09:15,119 --> 01:09:17,439or the future five twenty nine rollover, or you want to look at what97001:09:17,600 --> 01:09:21,399the roth IRA contributions for you,your kid and anything would impact your financial97101:09:21,479 --> 01:09:25,039situation, just give us a call. We'd be happy to sit down and97201:09:25,199 --> 01:09:28,199go through the financial plan. Likewe've always said, it's free. There's97301:09:28,199 --> 01:09:30,920no obligation to you. We giveyou the whole financial plan after the meeting.97401:09:31,079 --> 01:09:33,520It's not something you have to dobusinesses with us in order to get97501:09:33,560 --> 01:09:36,039the financial plan. It's all yours. We just want to be here to97601:09:36,159 --> 01:09:41,560help you understand what the best bestpath is for you going into and as97701:09:41,640 --> 01:09:45,239these new provisions get issued, asthey come into effect our financial planning software.97801:09:46,079 --> 01:09:50,359They have a great team they implementinto the background, meaning the model97901:09:50,760 --> 01:09:55,239that the financial plan uses for theircalculations. If tax has changed, they98001:09:55,359 --> 01:09:59,520updated immediately. If there's a newcontribution limit for an IRA, they updated98101:09:59,560 --> 01:10:02,359immediately. Because all those impact yourfinancial plan, right so they're able to98201:10:02,479 --> 01:10:08,439imp changing on the backside where wework on the front side showing the clients98301:10:08,479 --> 01:10:13,640the real accurate numbers even when there'sever changing rules every single year. A98401:10:13,880 --> 01:10:15,840big thing with this financial plan toois what we take into account is the98501:10:15,920 --> 01:10:19,920risk tolerance and right now. Andthat's always the biggest issue that we find98601:10:20,079 --> 01:10:23,800is when it's right now. Whenthe markets were growing up all summer,98701:10:23,880 --> 01:10:25,920not a big issue. But lastyear when the markets were going down,98801:10:26,159 --> 01:10:29,279that was a huge issue because peoplethought their risk tolerance was higher than it98901:10:29,479 --> 01:10:31,039is and then all of a suddenthe markets were down every which way,99001:10:31,159 --> 01:10:34,359bomb market, stock market, andthe rist tolerance the found out real quick99101:10:34,439 --> 01:10:36,640wasn't where they thought it was.They wanted to be more conservative, but99201:10:36,640 --> 01:10:42,399they didn't know how to rebalance theirportfolio in an effective manner. So now99301:10:42,840 --> 01:10:45,520what we want to try and getis the idea of get your risk tolerance99401:10:45,560 --> 01:10:48,640in line before it's too late,before we have to scramble to try and99501:10:48,720 --> 01:10:53,000fix anything. And that's also that'spart of the financial plan, that's part99601:10:53,000 --> 01:10:56,119of everything that we do, andthat's a big way we build portfolios here,99701:10:56,159 --> 01:10:59,239for the retirement planning, for investing, all of that is based around99801:10:59,239 --> 01:11:00,960the risk tolerance. At the endof the day, if you're in line99901:11:00,960 --> 01:11:03,880with your risk to allerants, ifyour portfolio ways, then you can sleep100001:11:03,920 --> 01:11:06,199at night more so than if it'snot. Yeah, it's funny because we100101:11:06,199 --> 01:11:10,039always, i mean people are alwaysasking us when are you most busy when100201:11:10,039 --> 01:11:12,600the markets are up or when themarkets down? It's like, well,100301:11:12,840 --> 01:11:15,560normally when the markets are down,but it should be the opposite, because100401:11:15,600 --> 01:11:17,039when the markets are up, that'swhen you should be mitigating risk. That's100501:11:17,039 --> 01:11:20,399when you should be looking at ismy money manager really doing everything they can100601:11:20,439 --> 01:11:26,840do to mitigate risk. Obviously,anyone can buy stocks and when am I100701:11:27,640 --> 01:11:30,239ride the wave up right, anyonecan just buy stocks and throw a dart100801:11:30,279 --> 01:11:33,159and be lucky. The thing thatmakes a real money manager good at its100901:11:33,279 --> 01:11:36,880job is being able to mitigate riskor being ahead of the eight ball right,101001:11:38,239 --> 01:11:42,119maneuver the rocky markets right. Andit's not something you should always get101101:11:42,119 --> 01:11:44,760a second opinion right, You goto a doctor for a second opinion,101201:11:44,840 --> 01:11:46,479get a second pinion in your portfoliowhile markets are high, because when the101301:11:46,520 --> 01:11:48,880markets have already crashed, there's nothingyou can go back in time and do.101401:11:49,119 --> 01:11:53,439I've been doing this for forty oneyears, and normally in the summertime,101501:11:53,520 --> 01:11:58,840anyone that can leaves does leaves,So it gets kind of quiet.101601:11:59,439 --> 01:12:02,760There's nothing quiet about what's going onin this office that you're seeing people.101701:12:03,079 --> 01:12:08,760They're referring family, they're referring friends. If you haven't gotten your free financial101801:12:08,880 --> 01:12:13,439plan from Greenberg Financial, give usa call. We'll be happy to help101901:12:13,520 --> 01:12:16,600him. We'll be back right upto spreak. Thanks Sea Baths your debut.102001:12:16,800 --> 01:12:25,520Happy to be here, say it'sa welcome back. Thanks for joining102101:12:25,680 --> 01:12:29,760us on the Sunday Morning Where theMoney Matters Show. I'm Dave with Dean102201:12:30,039 --> 01:12:32,560with Dodd with Dylan we're here tobring you the money Matter show. We102301:12:32,600 --> 01:12:38,640thank Sebastian or Sea Baths or helpingus out with his little debut. Did102401:12:38,720 --> 01:12:41,880a good job, and we appreciatehim. Being around radio could be nerve102501:12:42,000 --> 01:12:45,159racking the first time. You're remembernervous five years ago when I first got102601:12:45,239 --> 01:12:47,840on, I was so nervous.Yeah, but it gets easier when you102701:12:47,920 --> 01:12:51,079do it every week. Yeah.You forget that anyone's listening, and you102801:12:51,199 --> 01:12:54,720just we're just sitting here talking amongstfriends. Right. Oh. That was102901:12:54,760 --> 01:12:57,600the biggest thing for me was Iwas talking to a mic and nobody's paying103001:12:57,600 --> 01:13:00,039attention to me in the studio,and I had to do kind of what103101:13:00,119 --> 01:13:02,159Sebastian just did. And I wastalking and I stopped, and at one103201:13:02,199 --> 01:13:05,399point I stopped, nobody was goingto talk to me, and I realized103301:13:05,600 --> 01:13:09,119I was just a dead air forabout ten seconds, and I was like,103401:13:09,199 --> 01:13:12,640oh man, I gotta keep talking. That was like the eye opening103501:13:12,720 --> 01:13:15,560part of it. It had aninteresting Uh you know, I've lived here103601:13:15,600 --> 01:13:21,239a long time and water is anissue in the desert. No surprise there,103701:13:21,359 --> 01:13:26,439right, according to online realty firmchecked this out Toad. According to103801:13:26,520 --> 01:13:31,760Online Realty firm Redfin, twenty fivepercent of people living in coastal communities are103901:13:31,840 --> 01:13:36,640looking to relocate. Twenty five percent, Wow, people living in coastal communities104001:13:36,640 --> 01:13:42,760are looking to row. That's thehighest percentage ever. What's so bad about104101:13:42,760 --> 01:13:47,399the coast in history? That's wherethe people are so crowded. You know,104201:13:47,479 --> 01:13:49,920everybody like I want to live onthe coast. The problem is your104301:13:50,000 --> 01:13:56,680elbow to elbow anyway. Number onedestination for these people in their dreams Vegas.104401:13:57,560 --> 01:14:00,760Number two. Number two destinations Phoenix. And as I heard that,104501:14:01,000 --> 01:14:04,840my only thought was where do weget the water? Right? Right now?104601:14:04,960 --> 01:14:11,880Desalinization plants to me appear to bethe only solution. California is closed104701:14:13,199 --> 01:14:16,800with their environmentalist to getting anything donethere. But we need a pipeline to104801:14:16,880 --> 01:14:25,399bring water from the ocean to Arizona, and an Israeli company called ide is104901:14:25,720 --> 01:14:29,439doing just that. They're working withGoldman Sachs. They've asked the state of105001:14:29,479 --> 01:14:32,680Arizona to sign an agreement to buywater from them for a hundred years.105101:14:34,439 --> 01:14:44,319There's a five billion dollar project wouldbring water from the Gulf of California across105201:14:44,479 --> 01:14:49,119the northern part of Mexico and Arizona. And ultimately to Phoenix. The States105301:14:49,199 --> 01:14:53,319considering the proposal, you know,as if they have any other option.105401:14:54,039 --> 01:14:58,359Katie Hobbs has yet to endorse theproject, even though it appears to be105501:14:58,479 --> 01:15:02,840the only option. Closing the bordersto newcomers, I guess would be another105601:15:02,880 --> 01:15:05,840way we could go, but youknow, Katie doesn't like causing the borders.105701:15:06,159 --> 01:15:10,720Well, also, you lose taxpossible tax increased revenues. Yeah,105801:15:10,920 --> 01:15:14,439I mean more people means more taxes. Guy by the name of Chuck Podolac105901:15:14,680 --> 01:15:18,880is the Arizona state official in chargeof finding new sources of water, and106001:15:19,000 --> 01:15:26,520he said de sal in Mexico isa highly likely outcome. I've been wondering106101:15:26,640 --> 01:15:30,560for years. Why is no onedoing anything about this when we know that106201:15:30,720 --> 01:15:35,720that is the really the best solution, or at least the best permanent solution.106301:15:35,840 --> 01:15:39,680Right then, if we have arainy year, you don't you don't106401:15:39,720 --> 01:15:41,920need as much. If we havea dry year that you need more.106501:15:42,600 --> 01:15:49,319But a desalinization pipeline from the Gulfof California up to Phoenix seems like it's106601:15:49,319 --> 01:15:55,520going to happen. Makes sense,It thinks it needs to happen. It106701:15:55,680 --> 01:15:59,560does, I think so, absolutelyhave you did see the reservoirs in the106801:15:59,640 --> 01:16:01,800California over the last year because ofall the rain. Yeah, they were106901:16:01,880 --> 01:16:06,159dried up completely and now they're justreplenished. Yeah, but Texas is having107001:16:06,199 --> 01:16:10,119a terrible drought. Now. Itjust goes back and forth. I remember107101:16:10,159 --> 01:16:13,520when it was Georgia a few yearsback when they were showing all these reservoirs107201:16:13,560 --> 01:16:15,479empty, and now they're all fine. Yeah, exactly. It just happens.107301:16:15,600 --> 01:16:19,880It happens, It happens. Butit's just the difference here is this107401:16:20,439 --> 01:16:29,760just explosive, non stop growth wherea large portion of the country, despite107501:16:29,800 --> 01:16:31,760our one hundred and twenty degree weather, wants to live here. Well,107601:16:31,760 --> 01:16:34,760you don't have to shovel heat,no, and you don't have to put107701:16:34,840 --> 01:16:38,960an umbrella. I mean you can, but you don't need an umbrella for107801:16:39,000 --> 01:16:42,560the rain. Right. So yeah, people who have to do with rain107901:16:42,680 --> 01:16:46,760all day in Washington, right orsnow all winter, they come here and108001:16:46,800 --> 01:16:48,600they're like, yeah, the heat'sbad, but I guess what, most108101:16:48,640 --> 01:16:51,039of the day I'm inside anyways,they see, So it's not really that108201:16:51,159 --> 01:16:55,920star in California weatherwise is great.But that's why a lot of California people108301:16:55,920 --> 01:16:59,000are moving here because they still wantthe no cold. Well, it's so108401:16:59,159 --> 01:17:03,000expensive. It's just so expensive,so crowded anymore, and Da Phoenix is108501:17:03,039 --> 01:17:05,760not as cheap or two songs,not as cheap as it was just a108601:17:05,840 --> 01:17:10,399few years back. I don't getthe appeal of Vegas other than obviously the108701:17:10,600 --> 01:17:13,960city. But like the weather thereis like super cold in the winter,108801:17:14,039 --> 01:17:15,600it's super hot in the summer.They do not have good weather. It's108901:17:15,640 --> 01:17:18,159just not fun. No, peoplelove Henderson though, like they don't go109001:17:18,199 --> 01:17:20,720to the Strip that much. Theyjust love being in the cities that's surround109101:17:20,800 --> 01:17:25,119Vegas. Like weatherwise, I justthink it's to that would be you know,109201:17:25,239 --> 01:17:27,640without the gambling, there'd be nothingthere, right, it would be109301:17:27,840 --> 01:17:30,560uh probably wouldn't be grown, it'dbe Wickenberg, you know, I mean109401:17:30,560 --> 01:17:32,760it would it would be New Mexico. Yeah, there'd be nobody, nobody109501:17:32,840 --> 01:17:38,840there. So but it looks likeI think it's nice that somebody's actually talking109601:17:38,880 --> 01:17:41,880about a solution, and uh,you know, we've talked about it so109701:17:42,000 --> 01:17:45,319much and and it's such a problembecause we're not going to stop people from109801:17:45,359 --> 01:17:47,960moving here, all right, That'sjust not going to happen. So so109901:17:48,760 --> 01:17:51,319what we do, and tod.I'm always fond of saying, you know110001:17:51,399 --> 01:17:55,960what, I've lived here for fiftyone years and people will often come to110101:17:56,039 --> 01:17:59,520tu sound they go, see,it's awfully brown here, you know.110201:17:59,600 --> 01:18:01,880In my response to that for fiftyone years has been, yeah, it110301:18:01,920 --> 01:18:08,439takes a lot of crappy weather tokeep it green. Oh right, it's110401:18:08,479 --> 01:18:11,119a desert. And when I'm talkingto people in other parts of the country110501:18:11,159 --> 01:18:13,279and I always said, well,how's the weather, Well, yeah,110601:18:13,439 --> 01:18:15,720I said, pretty green outside,and oh yeah, And I tell them110701:18:15,760 --> 01:18:19,159I use that line. It's usuallygood for a chuckle. I'll tell you110801:18:19,239 --> 01:18:23,039what though, Phoenix uses so muchmore. I mean, the water they110901:18:23,159 --> 01:18:28,439use. It's ridiculous us stopping peoplebeing able developers. It's a new deal,111001:18:28,520 --> 01:18:30,800is yeah, it's a whole newdeal. Like their developers aren't going111101:18:30,840 --> 01:18:33,760to be able to use some reservoirs. Well, well, what developers have111201:18:33,920 --> 01:18:36,840to do in Arizona is they haveto prove that they have a hundred years111301:18:36,880 --> 01:18:42,920worth of water before they even createa subdivision, which is becoming increasingly hard111401:18:43,079 --> 01:18:45,399to do. Yes, because youhave to prove you have to go to111501:18:45,479 --> 01:18:48,039eight deck, you know, theArizona Department of environmental quality and show them111601:18:48,399 --> 01:18:51,600that you have enough water to supplythis subdivision for one hundred years. And111701:18:51,680 --> 01:18:56,560that's why they're not being able tobuild those any more down parts of Phoenix111801:18:56,600 --> 01:19:00,960because of that issue. Yeah,it's fascinating. But the average interest rate111901:19:00,039 --> 01:19:03,119on a forty eight month new carloan in the US has moved up to112001:19:03,159 --> 01:19:06,439seven point five nine percent. It'sthe highest we've seen since two thousand and112101:19:06,560 --> 01:19:10,880seven. That's a four year I'msorry, four year forty eight months so112201:19:11,039 --> 01:19:14,840twelve yeah, four years, fouryears, seven point five nine yep.112301:19:15,279 --> 01:19:16,760High two thousand and seven. Iknow when my wife and I were looking112401:19:16,840 --> 01:19:21,239at cars over the Memorial Day weekendand the least payments and that sort of112501:19:21,319 --> 01:19:25,279thing, and just if I,if I financed it, what could you112601:19:25,399 --> 01:19:28,560do? And the races were upin the seven eight nine percent range,112701:19:28,640 --> 01:19:30,680which is crazy because of a yearand a half ago. I got mine112801:19:30,720 --> 01:19:32,479for three and a half three pointtwo percent. Wow, back in April112901:19:32,560 --> 01:19:36,319twenty two, they just skyrocketed.Yeah. The same same happened with the113001:19:36,359 --> 01:19:41,319mortgages. Um they touched over eightpercent last week. Yeah, mortgage you113101:19:41,319 --> 01:19:44,439did, mortgage did? Yeah?Yeah. Rachel Race jumped pretty good last113201:19:44,479 --> 01:19:46,479week, very close with you know, we know that the Fed funds race113301:19:46,520 --> 01:19:50,159at a twenty two year high andthe ten year treasury got real close to113401:19:50,359 --> 01:19:57,760uh sixteen year high on Thursday oflast week. Yeah, what I said,113501:19:57,760 --> 01:20:00,560don't the show a couple of weeksthe one year hit the since two113601:20:00,640 --> 01:20:02,680thousand, since two thousand, acouple of weeks ago. Oh okay,113701:20:02,760 --> 01:20:06,800Well that would be consistent with thetwenty two year high for the h in113801:20:06,840 --> 01:20:11,279the Federal Reserve. Disney, we'vebeen you know, we're fans of Disney,113901:20:11,319 --> 01:20:14,760and it's been a laggard. Gota nice little pop on Monday.114001:20:14,880 --> 01:20:19,000Didn't hold. But um, youknow Iger's come back as the CEO.114101:20:19,520 --> 01:20:24,560Bob Biger, right, yep,ber, thank you? So what twenty114201:20:24,680 --> 01:20:27,880five now? Yeah, and hebrought in There were two executives, a114301:20:27,920 --> 01:20:31,399guy named Kevin Mayer and another guynamed Tom Staggs, who were his right114401:20:31,560 --> 01:20:38,399hand men, and those two werevying for his job when he retired.114501:20:38,960 --> 01:20:42,000Neither one of them got it,and so they both quit. Well he114601:20:42,079 --> 01:20:45,600has brought both of them back,so the A team is back and fully114701:20:45,720 --> 01:20:50,279in effect at Disney. You wantto stock this down and out and nobody114801:20:50,439 --> 01:20:56,720has any interest in might be Disney. Yeah, and I really interested to114901:20:56,800 --> 01:21:00,840see how they do the sports division. You have you heard anything different about115001:21:00,880 --> 01:21:03,399the sports division on Disney, Notanything recent besides that they want to just115101:21:03,960 --> 01:21:09,760make ESPN a full streaming platform.Already have ESPN Plus and that's their goal115201:21:09,880 --> 01:21:12,680is to make it more streaming.So they're not at one point they're thinking115301:21:12,680 --> 01:21:15,600of getting rid of ESPN. Well, because they own Hulu and Disney is115401:21:15,640 --> 01:21:17,920gonna merge with Hulu or something,so they own the majority of whul They115501:21:17,960 --> 01:21:21,800own eighty percent of Hulu and theywant to buy the rest of it from115601:21:21,840 --> 01:21:26,079whatever company owns the other twenty percent, and then they want to just start115701:21:26,159 --> 01:21:30,159streaming it, which I'm guessing they'regonna combine ESPN with it. Yes.115801:21:30,640 --> 01:21:33,159Yeah, I'm seeing a lot ofstuff that I like to watch popping up115901:21:33,199 --> 01:21:36,479on Hulu. I've been going toHulu. Who's better platform for TV?116001:21:36,760 --> 01:21:40,600Yeah? I don't always have alot of TV shows on there. Yeah,116101:21:40,600 --> 01:21:42,880I don't really care one way orthe other. It well, not116201:21:42,960 --> 01:21:45,039the biggest original ones. Netflix isstill as soon as to be the biggest116301:21:45,239 --> 01:21:49,840HBO original. HBO has a lotof originals as Disney's streaming is going to116401:21:49,880 --> 01:21:53,760get lost in the mix if theydon't start making more originals rather than just116501:21:53,800 --> 01:21:56,279spin offs of the nostalgia. Youmentioned that, and I think that is116601:21:56,359 --> 01:22:01,319an extremely insightful servation. Yeah,I really do. I think you're absolutely116701:22:01,359 --> 01:22:04,279spot I hope they changing. Iwouldn't thought about it, and it's a116801:22:04,359 --> 01:22:08,760great observation. They're also just doinga terrible job with their spinoffs, like116901:22:08,840 --> 01:22:12,079they could be doing so much better, but instead they just put this wolf117001:22:12,159 --> 01:22:15,560movement on every single Do you guysmiss bed Bath and Beyond. I haven't117101:22:15,600 --> 01:22:18,640thought about it once since we lasttalked about it on Well if you are.117201:22:18,880 --> 01:22:24,000If you are missing it, it'sback. It's back again. If117301:22:24,039 --> 01:22:28,479you're confused because you're seeing ads forthe company that went out of business a117401:22:28,600 --> 01:22:32,560couple of months ago, right Overstockacquired the rights to the company's name and117501:22:32,800 --> 01:22:38,119relaunched it last Tuesday. So youcan buy bed Bath and Beyond on the117601:22:38,359 --> 01:22:42,880on the bed Bath and Beyond websiteor the bed Bath and Beyond app So117701:22:43,119 --> 01:22:46,439if you're a bed Bath and Beyondattic, guess what, it's back.117801:22:47,199 --> 01:22:51,960It's been earning season. As we'veknown, we've about in the thickest things117901:22:53,039 --> 01:22:56,359here. I think what we havehad sixty percent so far report how much118001:22:56,359 --> 01:23:00,520have we've had report so far?Last week was the busiest week for earnings118101:23:00,560 --> 01:23:05,319repressed this quarter so so far.On the stocks that have beat their EPs,118201:23:05,359 --> 01:23:10,439which is earnings per share their estimates, they're not going up as high118301:23:10,439 --> 01:23:12,880as they normally have. So overthe past ten years, if a stock118401:23:12,960 --> 01:23:15,640beat their EPs guidance, they're upabout one point five eight percent the following118501:23:15,760 --> 01:23:19,680day. This year this season,they're only up point two seven whereas the118601:23:19,760 --> 01:23:24,560stocks that missed the EPs, they'redown more than their ten year average.118701:23:24,560 --> 01:23:29,119Show it's showing that the market waskind of really had high expectations go into118801:23:29,199 --> 01:23:32,000this earning season. They're not gettingwhat they were expecting, and so therefore118901:23:32,039 --> 01:23:35,399they're selling. Even on the goodnews, it's not as good as they119001:23:35,439 --> 01:23:38,880want it, and on the badnews, it's even worse than what they119101:23:38,920 --> 01:23:45,960thought. I'm seeing a ton ofdisappointing guidance, a ton of cautious guidance,119201:23:45,039 --> 01:23:49,319which tells you we're coming into aslowing period for the economy. How119301:23:49,359 --> 01:23:55,119will that translate into stock prices?Anybody's guests, Well, here's The interesting119401:23:55,239 --> 01:23:58,279thing because if you break it downby sectors. So I just gave you119501:23:58,359 --> 01:24:01,159the overall market. If you breakit down by sector, the consumer staples119601:24:01,439 --> 01:24:04,600is up one point six eight percentthe day following they beat their EPs.119701:24:04,920 --> 01:24:10,920But consumer services in technology they're downaround one percent the day they beat their119801:24:11,000 --> 01:24:14,239guidance. So the consumer services,technology, all those stocks that have run119901:24:14,359 --> 01:24:17,159up, they have huge expectations evenwhen they beat. They don't care stocks120001:24:17,199 --> 01:24:20,920going down. Consumer staples, noone's really investing in that. When they120101:24:21,039 --> 01:24:26,760beat, people listen and they buy. We appreciate your joining us on this120201:24:26,840 --> 01:24:30,039Sunday morning. We hope you'll takeadvantage of the free financial plan we're offering,120301:24:30,119 --> 01:24:34,880which is significant and we've been busy. The guys will make an appointment120401:24:34,920 --> 01:24:39,039for your call. Ask for Toddor Dylan. They'll set up a time120501:24:39,079 --> 01:24:42,479when they can meet with you anddo go through the financial plan. We'd120601:24:42,520 --> 01:24:44,640love to do it and we'd loveto see you here in the office.120701:24:44,800 --> 01:24:47,000Thanks again for joining us. We'llbe back with the final stegment right after120801:24:47,079 --> 01:24:55,600the break. Say it's all welcomeback. You're listening to the final segment120901:24:55,840 --> 01:24:57,800of this show. It's been agreat show. A lot of stuff going121001:24:57,840 --> 01:25:00,319on in the world. It's sucha busy week. The biggest news was121101:25:00,359 --> 01:25:05,199the Fitch downgrade. That's hid inchestrateseverything in that um kind of just was121201:25:05,239 --> 01:25:09,199the catalyst of the whole week.The ripples with that will be felt for121301:25:09,239 --> 01:25:13,239a while. It will, andespecially with everything going on. And that's121401:25:13,279 --> 01:25:15,760aw Trump's car driving to Washington.That was big news. Yep, yeah,121501:25:16,479 --> 01:25:19,760that was. I mean, itjust it just it's irritating if you121601:25:20,159 --> 01:25:25,239you can't even watch it every day. The gym, that's see. It's121701:25:25,319 --> 01:25:28,479kind of unfortunate because like the besttreadmills for me because I'm bigger, so121801:25:28,800 --> 01:25:30,000a lot of the treadmills that choosedon't work for me. That kind of121901:25:30,039 --> 01:25:32,720just wigh too much for him.So I got to use a specific couple.122001:25:33,319 --> 01:25:38,039And the TV is right in frontof me is CNN, and you122101:25:38,079 --> 01:25:41,720can't change channels that choose, andit's always on and it's always talking about122201:25:41,760 --> 01:25:44,039Trump every afternoon. I don't getit. You would think they would do122301:25:44,079 --> 01:25:46,319like ESPN or something like who theygot ten TVs, OK, I just122401:25:46,439 --> 01:25:50,319have to be stuck watching the onein CNN because I was across the way122501:25:50,560 --> 01:25:54,119we'll break on me. I'm theexact same way, but the tread melig122601:25:54,159 --> 01:25:57,479in front of CNN. I cando it if I go in the morning,122701:25:57,520 --> 01:25:59,319though, when I go work outat like four thirty in the morning,122801:26:00,000 --> 01:26:02,079actually having news like just current eventsgoing on on CNN, it's actually122901:26:02,159 --> 01:26:05,560normal news. You come in theafternoon primetime on the East Coast all about123001:26:05,600 --> 01:26:09,279Trump. It's really interesting. Well, work out I'm doing at four thirty123101:26:09,359 --> 01:26:13,079is trying to make sure my pillowsinto my petition. Yeah right, you123201:26:13,359 --> 01:26:15,319Actually, I'm in the middle ofmy run. I wake up at four123301:26:15,359 --> 01:26:19,119am to go bus day. Youyoung bucks are something else. I'll tell123401:26:19,159 --> 01:26:23,039you. I want to talk aboutsomething though, that we've been talking about123501:26:23,039 --> 01:26:25,960a lot in the past and alot more recently too. We're diving a123601:26:26,000 --> 01:26:29,199lot more into his federal employees.And if you're a federal employee, you123701:26:29,239 --> 01:26:33,239know, your retirement is very intricateand it's very unique to just a regular123801:26:33,279 --> 01:26:36,199four oh one K from a publiccompany, a private company or whatever it123901:26:36,319 --> 01:26:39,119is. You guys, you know, you get your pension, you have124001:26:39,239 --> 01:26:42,479your healthcare, you have your theFegley, which is the life insurance plans.124101:26:42,800 --> 01:26:45,399You might have a long term carepolicy. Through there you have the124201:26:45,479 --> 01:26:47,920TSP, which is pretty much thesame as a four oh one K,124301:26:48,079 --> 01:26:51,760just different funds that you can investinto. But with all that combined and124401:26:51,880 --> 01:26:56,319all that everything going into your retirement, it makes for a lot more of124501:26:56,399 --> 01:27:00,159an intricate financial plan. And ourfinancial plan we've been seeing a lot more124601:27:00,199 --> 01:27:04,239Feds lately because our financial plan offersit's able to process everything that you guys124701:27:04,279 --> 01:27:08,760have seeing a lot more FEDS Federalemployes. Okay, there you go.124801:27:08,960 --> 01:27:12,560I've not made the FEDS were checkingout or something. Fed employee, we124901:27:12,640 --> 01:27:15,319call them Feds. You call themFeds either way. Sometimes okay, when125001:27:15,359 --> 01:27:19,000we feel cool the short I wastalking, all this sounds cool. Yeah125101:27:19,119 --> 01:27:26,199that's cool. Yeah, yeah,either way either way. So yeah,125201:27:26,199 --> 01:27:30,760I'm sorry, we digress. Butwith that is the TSP, and I125301:27:30,840 --> 01:27:33,680mean, the reason a lot ofwe've been talking to a lot of federal125401:27:33,760 --> 01:27:39,680employees is because the TSP can't helpyou. They're not able to help you125501:27:39,800 --> 01:27:42,319if you call them and ask foradvice on anything like what do I do125601:27:42,399 --> 01:27:45,039with my plan? Do I rollit into an IRA? What is this125701:27:45,159 --> 01:27:45,960fun? What does that fund?I mean, they're not able to help125801:27:46,000 --> 01:27:49,279you because they just legally can't.All they tell you is your money's there,125901:27:49,359 --> 01:27:51,239this is what's in each one.That's all they can do. So126001:27:51,319 --> 01:27:56,720a lot of federal employees do endup rolling over their TSP into an IRA126101:27:57,239 --> 01:27:59,920later on, because, like Iwas saying earlier, it can get more126201:28:00,000 --> 01:28:01,520in line with the risk toolers.You can mitigate risk more than IRARA.126301:28:01,680 --> 01:28:04,520You can't do that in a TSP, and you're stuck there doing it on126401:28:04,560 --> 01:28:06,680your own. And if you reallydon't know what's going on, or you126501:28:06,720 --> 01:28:10,079don't care to know what's going on, you just put your money away each126601:28:10,159 --> 01:28:13,800month and you're just waiting until retirement. And that's the reason to come talk126701:28:13,840 --> 01:28:16,840to us and get our point ofview from how we can help doing it126801:28:17,000 --> 01:28:20,720more of a customized portfolio. Also, a lot of federal employees they have126901:28:20,840 --> 01:28:24,640this idea that they have they're goingto live off their pension and soul security127001:28:24,680 --> 01:28:28,159and that's their income, where mostof them they don't consider that they also127101:28:28,239 --> 01:28:30,760have this TSP that they're putting awaywhich could supplement their income to live more.127201:28:31,119 --> 01:28:34,319I mean, it's really fascinating thatwe see federal employees are some of127301:28:34,359 --> 01:28:40,600the most responsible group of people thatwe meet, they've done everything basically right.127401:28:40,920 --> 01:28:43,720They have a lot put away intheir TSP, and they also have127501:28:43,920 --> 01:28:46,760great pensions, so and a lotof them live fually. So when they127601:28:46,840 --> 01:28:49,119do retire, they think, Okay, I'm just gonna live off my pension127701:28:49,119 --> 01:28:51,760and soul security and then call ita day. And they don't realize that127801:28:51,840 --> 01:28:56,800they can live a lot better qualityof life if they want to, and127901:28:56,840 --> 01:28:59,399a lot of them it's so fascinatingtoday they'll be like, I don't want128001:28:59,439 --> 01:29:01,760any money left. I don't Idon't care about inheritance. I want to128101:29:02,039 --> 01:29:05,279use every time. But then weshow them that if they continue with their128201:29:05,319 --> 01:29:09,720spending habits currently, they're going toleave a million, two million, three128301:29:09,760 --> 01:29:13,000million dollars at the end of theplan. Yeah. For years I've reminded128401:29:13,119 --> 01:29:15,079clients that if we could be giventhe day to death, we could do128501:29:15,159 --> 01:29:17,680a heck of a lot better job. Yeah, exactly. And I don't128601:29:17,760 --> 01:29:19,399have anyone to come up. Well, there's a way. I mean,128701:29:19,399 --> 01:29:24,239a lot of federal employees if theydo need And the big thing we work128801:29:24,279 --> 01:29:26,760with federal employees is the idea ofthey get their pension and you'll get your128901:29:26,800 --> 01:29:30,720soul security. If there is anygap between your expenses and your income coming129001:29:30,760 --> 01:29:33,760in during retirement, that's where wecome in and try and help you bridge129101:29:33,800 --> 01:29:39,399that gap, whether it's through findingan income from your TSP or finding an129201:29:39,399 --> 01:29:42,560annuity if that's something you want.And the only reason we like annuities in129301:29:42,600 --> 01:29:45,680the sense is because they have theycan offer that guaranteed income that we personally129401:29:45,760 --> 01:29:49,159can't and that's how you but youalso those comes with fees. We have129501:29:49,279 --> 01:29:54,279different models in house that we canproduce income and that's sometimes enough to supplement129601:29:54,399 --> 01:29:59,840the bridge. And then when we'recalculating spending, we have their current s,129701:30:00,199 --> 01:30:02,119so what are they spending just livingday to day right now? And129801:30:02,279 --> 01:30:06,199then our plan we can show whatis too much spending and then you get129901:30:06,239 --> 01:30:10,720a really nice range where you knowwhat's too much and what you currently are130001:30:10,760 --> 01:30:13,840spending. Find that middle. Right, Yes, it's probably going to be130101:30:13,920 --> 01:30:16,680more spending what you're currently doing,and that's okay. You've worked hard,130201:30:17,000 --> 01:30:21,199You've built up this next stagg Andalso Dean talks about all the time there's130301:30:21,199 --> 01:30:26,399this bell distribution and retirement. Thefirst two or three years you're kind of130401:30:26,479 --> 01:30:29,319scared. You don't know how muchyou can spend because you never really have130501:30:29,840 --> 01:30:31,760lived off a nest egg before,you've been getting paychecks or your life.130601:30:32,000 --> 01:30:34,560But then after that you get realcomfortable and you want to live life.130701:30:34,840 --> 01:30:40,239You want to go on these bigretirement vacations. But then after about ten130801:30:40,359 --> 01:30:43,479years of that, your health isgone right, your health really you're not130901:30:43,600 --> 01:30:45,520in a place where you want tobe traveling every single year. And then131001:30:45,600 --> 01:30:49,039the income drops off a cliff again. So just because you might be spending131101:30:49,239 --> 01:30:53,760more in the next ten years,you should be. You worked your entire131201:30:53,840 --> 01:30:56,760life for these golden years. Takeadvantage of them. I know it's really131301:30:56,840 --> 01:31:00,800hard mentally to get around that fact. But you've done all the hard work.131401:31:00,880 --> 01:31:03,039Now it's time to reap the fruitsof your labor. The other thing131501:31:03,119 --> 01:31:10,640that people don't really think about youngfederal employees that are starting families, right,131601:31:11,119 --> 01:31:14,119they get you know, they're allover the place, so they don't131701:31:14,159 --> 01:31:16,199do a plan, they don't getstuff together. They think they have it131801:31:16,279 --> 01:31:19,119every together. But the one thingthat they don't have, and this is131901:31:19,159 --> 01:31:23,239where it all starts, is therisk part of it. They think they132001:31:23,279 --> 01:31:26,000got some federale, they got someinsurance from the federal government, right,132101:31:26,920 --> 01:31:29,800But if something happened to them andthey have only been there five six,132201:31:29,800 --> 01:31:32,720seven years where and they're not therelong enough for the pensions and stuff,132301:31:32,840 --> 01:31:35,840or they were all no pensions,how they're going to make up the difference.132401:31:36,439 --> 01:31:39,359They have kids, they got togo to college, they got to132501:31:39,359 --> 01:31:42,920do the No one plans for that. So you know, a term insurance132601:31:42,960 --> 01:31:45,399policy would be great to old too, to make sure that they're because if132701:31:45,399 --> 01:31:48,640they're younger, know it's cheaper,but even a whole life policy where it132801:31:48,720 --> 01:31:53,640actually can grow and be something forthem later on, is worth it if132901:31:53,640 --> 01:31:58,039they're young enough to do it.So you think you don't need anything because133001:31:58,039 --> 01:32:00,359you don't want to ever think aboutthe worst thing. But if you if133101:32:00,359 --> 01:32:01,760you just by yourself, it doesn'tmatter, right, But if you got133201:32:01,800 --> 01:32:05,119a wife and you got kid tryingto right and trying to do stuff,133301:32:05,520 --> 01:32:08,680you have to suck it up andsay, you know what, I got133401:32:08,800 --> 01:32:13,560to think about this. We realisticallyI don't want to use the insurance,133501:32:13,600 --> 01:32:15,479but god a bit, if it'ssomething happens, I need to do it.133601:32:15,720 --> 01:32:21,159And getting it while you're young juststarts the financial planning going that most133701:32:21,199 --> 01:32:25,479people don't do. Absolutely ye,how about a fun fact. You want133801:32:25,520 --> 01:32:28,199a fun fact? That's here?Close out the show? Here? You133901:32:28,279 --> 01:32:30,279know what in and out? Haveyou been in in outlet? That was134001:32:30,319 --> 01:32:34,359an in and outlett? I'm alwaysin and out Here you go. I134101:32:34,479 --> 01:32:41,359noticed that some people had one whitesleeve on and some people had two white134201:32:41,399 --> 01:32:44,840sleeves on, and other people hadno white sleeves on. Well, I134301:32:44,880 --> 01:32:47,439asked them, I said, whydo you what's going on here? If134401:32:47,520 --> 01:32:51,720you have tattoos, they have tobe covered by that white sleeve. Yeah,134501:32:53,079 --> 01:32:56,960so you can tell people that haveto either wear a long sleeve shirt134601:32:57,359 --> 01:32:59,680or you have to wear the whitesleeve. So when you walk into and134701:32:59,760 --> 01:33:02,159out and half the people have oneor two white sleeves on, that's what's134801:33:02,199 --> 01:33:06,520going on. In addition to thatthey are no longer allowed to wear mask134901:33:08,279 --> 01:33:10,840at work. You said that lastweek. That's your fun fact. You135001:33:10,880 --> 01:33:13,319don't have anything more. That's afun fact. It's a fact. It's135101:33:13,359 --> 01:33:15,680not that fun, you know likeit, you know fun, It's just135201:33:15,800 --> 01:33:18,600a fact. Like I brought astuff toy home to my granddadter one time,135301:33:18,640 --> 01:33:21,319and it was kind of hard.No, no, no, you135401:33:21,359 --> 01:33:25,159don't get to say that. Youdon't get it. You don't get it.135501:33:25,680 --> 01:33:28,600You're the one always given this guya hard time. I brought a135601:33:28,680 --> 01:33:30,560stuf toy to my granddaughter one timethat I had wanted a carnival and it135701:33:30,640 --> 01:33:33,640was kind of hard, and Igave it to her and and she said,135801:33:34,119 --> 01:33:42,880Papa, this is not a goodgift. So kids said, they're135901:33:42,920 --> 01:33:45,520darn the things right. She's she'sa little blonde, and she said,136001:33:45,840 --> 01:33:47,520Papa, my hair is golden andI have white hair. And I said,136101:33:47,800 --> 01:33:49,600my hair is white, and shegoes, I don't like white hair.136201:33:50,479 --> 01:33:53,720Very straightforward. I think you cando in year four, right,136301:33:54,760 --> 01:33:58,479what do you mean I still dothat? That's true. Good point,136401:33:58,840 --> 01:34:00,319as long as it's the truth,tell it like it is. You want136501:34:00,319 --> 01:34:03,359to talk about Apples Earneys a littlebit biggest company in the world, probably136601:34:03,399 --> 01:34:06,560the most widely owned that the learning. They didn't have bad revenue. They136701:34:06,560 --> 01:34:11,359were in line. It's just theyhad sinking sales of iPhones, iPads and136801:34:11,479 --> 01:34:14,840the mac and that's part of theproblem. The third consecutive quarter where they136901:34:15,039 --> 01:34:19,520reported lower revenue than the year before. Yeah, and they're expecting the same137001:34:19,640 --> 01:34:23,279thing at the end of the thirdquarter. Now, overall, I bought137101:34:23,279 --> 01:34:27,159a new iPhone. I guess I'mnot making too big. Yeah. Revenue137201:34:27,279 --> 01:34:30,640down yeah yeah, yeah from froma year ago. So yeah. And137301:34:30,680 --> 01:34:33,319they have such high expectations being Applethat when all those sales are down and137401:34:33,359 --> 01:34:36,800then they forecasted the third quarters tobe the same results, that was part137501:34:36,800 --> 01:34:40,119of the issue. You know,I hope that company gets killed because I137601:34:40,159 --> 01:34:42,960want to keep buying and buying intothat lower and lower. That's a great137701:34:43,000 --> 01:34:45,439I want to I want people tobe to be cautious with all of this137801:34:45,680 --> 01:34:50,399AI excitement. And it hit methis past week. AI excitement is like137901:34:50,640 --> 01:34:55,960the electric vehicle charging stations, right, that's what AI is. Right now,138001:34:56,079 --> 01:35:00,359all you're doing is building out theAI infrastructure. You're receiving no revenue,138101:35:00,720 --> 01:35:04,800You're only expending money, same thingI do. Elect your cause remember138201:35:04,840 --> 01:35:08,760four three billion dollars, as Isaid, just like the electric chargers,138301:35:08,840 --> 01:35:13,239right, that's crazy. No,No, there's so much Okay, go138401:35:13,359 --> 01:35:15,319back. It was all it wasall the baron Wanna stocks. Yeah a138501:35:15,359 --> 01:35:19,760few years ago, just dot comcompanies. It's always the same stuff.138601:35:19,960 --> 01:35:24,399It was Bitcoin. They run upwhen there's nothing there and it's just a138701:35:24,479 --> 01:35:28,319cycle. All the memes, allthe meme stock. So I was watching138801:35:28,399 --> 01:35:31,479that on that there was something onNetflix about a game stop. Have you138901:35:31,560 --> 01:35:35,119seen that yet? That that wholething that happened, and it's kind of139001:35:35,199 --> 01:35:40,119interesting. I'm sorry, I'm sorry, did have it. Yeah, I139101:35:40,159 --> 01:35:44,239know it's my fault. I wassignaling something that I'm trying to look I'm139201:35:44,239 --> 01:35:45,640trying to look at something upside down. To relax, I'm not seeing it.139301:35:45,960 --> 01:35:50,239Take a breath, be patient.So we do only have about a139401:35:50,279 --> 01:35:55,520minute left. So obviously, uh, people love the show. I mean,139501:35:56,039 --> 01:35:59,079this is the busiest summer we've everhad. Guys, we're doing something139601:35:59,199 --> 01:36:01,600right. People like we're doing unbelievable. Yeah, and Gardine and I wanted139701:36:01,600 --> 01:36:05,840to relax. Who stuff going on? Yeah, it's a plan, this139801:36:06,000 --> 01:36:11,000financial plan and hearing us and talkingto us. We're no different here than139901:36:11,039 --> 01:36:14,319we are there. Come see us, get your get your free analysis,140001:36:14,479 --> 01:36:16,239your free plan, and I meanfree, and we'll give it to you.140101:36:16,479 --> 01:36:20,479You'll enjoy it, you'll have something. And then guess what someone's gonna140201:36:20,520 --> 01:36:23,359have to work with you. Soa lot of people work with us.140301:36:23,720 --> 01:36:26,319It's okay, that's what we like, but we're not going to force you.140401:36:26,640 --> 01:36:30,079We'll be back next week where yourmoney matters. Everybody needs to be140501:36:30,159 --> 01:36:32,479healthy. That's what makes everything go. If you're healthy, then we're happy.140601:36:32,960 --> 01:36:38,479And we're happy and healthy. Weall want to be provable