Mr. Money Talk

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Episode Transcript

(00:09):
This is Josh Arnold, mister moneyTalk with jud Arnold here to answer your
questions on stockt bonds, mutual funds, how you should position your investment dollars
including your IRA in four oh oneK. Don't hesitate to give us a
call at nine five two nine twofive five six o eight. That's nine
five two nine two five five sixo eight. You always get straight talk,

(00:33):
not sugarcoated advice. Another big weekand a big week in terms of
earnings, But a bigger week interms of earnings comes next week as one
hundred and sixty eight stocks of theS and P five hundred report their numbers.
Not to mention next week that theFIT has their meeting, and the

(00:58):
probably eighty five sent chance that theFed is going to increase interest rates twenty
five basis points, it is goingto be on the table. Market is
definitely going to be focusing in onearnings from the likes of companies like Microsoft,
Fit, Facebook or Meta, Google, Amazon, Visa, and McDonald's,

(01:25):
among others. And the focus isnot only going to be on their
earnings and how they did to letthis past quarter, but what their guidance
is going to be in the comingquarters, And of course there is going
to be the market worry about theFED and what the FIDS guidance and or

(01:48):
dot plot is going to be overthe next several months, and is the
FID thinking about raising interest rates asecond time at their next meeting in September.
And of course we do have thestart of the NASDAC rebalancing which will

(02:12):
take take effect Monday morning. Andcontinued concerns at least among many strategists of
a recession that could be happening soonerrather than later on some strategists viewpoints,
or later rather than sooner on others. And then there's a always worry that

(02:39):
the market is overbought and due fora significant correction. Now, when it
comes to the market being overbrought orhaving a significant correction, I think there
are numerous strategists and numerous individuals whohave not anticipated in the markets move up

(03:04):
this year and they're looking for achance to get in. What do you
think, jud We've been tracking itfor months now. Which is the SMP
five hundred index versus the equal eightSMP five hundred. As a reminder,
in the SMP five hundred is amarket cap weighted index. The top ten
companies are about thirty percent of theindex, meaning the other four ninety are

(03:30):
only a lot smaller, a lotsmaller. That gap has been ten percentage
points all year for the you know, for the quote unquote catch up trade.
It's now nine coming closer. Well, that's that's because of what happened
on Friday with a lot of thelarge, large, large capitalization TEX stocks,

(03:53):
which make up a pretty heavy weightingnot only in the NASDEC but also
in the SMP, are going tobe rebalanced. But that's only that's in
the QQ here. That's not inthe STI. I understand that, but
the selling that could be going by. But well, let let's let's leave
the tech world. Let's be alittle positive, which is they are very
positive. Banks are a big partof that four ninety and uh, banks

(04:17):
sounded really good again this week.Yeah, we're week two of earnings in
the book Q two earnings and itsounds not bad. It sounds at least
from the from the banks. Itlooks like the banks are not going to
be going out of business any Theymight they might have to raise a little
bit more capital, but there itlooks like the banks are not going going

(04:41):
to be going out of out ofbusiness right now. And that's particular with
the regional banks, which seemed tohave the most trouble in April. Uh
yeah, they all sound find theenergy companies, all the big services companies
Haliburt and Slumber J. Baker hughesOr reported this week they all sounded downright

(05:01):
giddy about spending imp spending from thebig majors. So that's humming. Two
yeah, three more, I'll say, three more weeks of earnings left.
But here we are. We're upeighteen in change on the SMP, five
hundred nine in change on the equalwad on the NAS deck. It's just

(05:26):
just a normal great year. Andinflation keeps coming down, I'd say.
Of note on the inflation front,the most telling thing is Blackstone, the
mega asset manager. I think it'sthe biggest asset manager in the world.
Well, they have several trillion dollarsone trillions, one trillion, one trillion.
That's several big private equity fund theysaid across their portfolio. I was

(05:46):
thinking of black Rock Mempers. Yeah. Yeah. Black Stone, which owes
a bunch of companies big private equityfunds, said they're at the company level
of what they own. They're seeinginflation come in a lot more than headline
numbers. Well, I would Iwould tend to agree with that. I
know that the fan is only lookingin terms of inflation. They're they're saying

(06:08):
that inflation is extremely sticky, andparticularly in employment. Well, labor cost
Labor costs continue to go up andand house prices one of the big tenants
of the well, i'll call itnew bowl market because it is technically a
new bowl market. We are upway more than twenty percent from the bottom,

(06:30):
which was last October. So isthis dead ceiling deal that they struck
was a month ago? Now,Yes, allows the federal dead outstanding to
go from thirty one to thirty fivetrillion in the next two years. That's
four trillions. That's that's a lotof a lot of mice. So we're
about a ten or sorry, we'reabout a twenty trillion dollar economy. So

(06:51):
an extra ten percent used to theeconomy next two years, and death is
it spending. The Fed can beas tight as they want, but as
long as fiscal policy is that loose, that's where we're going to keep inflating
assets and then just going back tothe Fed it's kind of both sides of
their mouth because while they're raising interestrates, the amount of liquidity they're providing

(07:15):
to the system keeps going up.The FED balance sheet keeps expanding. You
get it. That's pretty it's prettyinteresting. I would I would have thought
that the FED would have been cuttingback on their balance sheet. Well,
they're not expanding it. They're cuttingback on what they said they would cut
back on, which is the quantitativeeasing stuff. They're expanding the bank support
stuff. So the one of theoutcrows of the bank crisis from March was

(07:41):
all these emergency FED programs, whichyou're now pumping in three four hundred billion
dollars of liquidity into the system.So again that becomes very significant. It
starts to matter. Well, it'sbeen mattering. We we've had for the
March to get to get kneecapped.We really needed Q two earnings to be
bad, and so far now we'retwo weeks in, they're not bad.

(08:03):
We had a lot more pre announcementsthan we've gotten into three years coming in,
which was positive. So we're enteringa weaker seasonally weaker part of the
market, which is August is usuallya down month. For the SMP five
hundred, but well both August isusually down. That's primarily because of all
the vacations that the big money playerstake, not only here in the United

(08:26):
States but abroad and Auguste Yeah,the junior varsity takes takes over in August.
Well, the varsity is on vacation. The varsity comes back in September
and looks at the at the sheetsand said, oh, we've got to
sell everything. Yeah, so September, October or actually really October is the

(08:46):
worst month for the market. Sowe're entering up a quote unquote perilous time.
And we'll just remind everybody for thetwenty million time, there's a lot
of risks and the markets should selloff fives ten percent three to four times
a year before we come back.We do have to say, are a
disclaimer, the normal disclaimer, whichis none of this is investment advice.
This is for discussion purposes only.Don't make any investment decisions based on this

(09:09):
show. Please consult the financial advisor. Investing contains risk, including risk of
loss. Some of the stocks wetalked about are not suitable for you,
and be careful out there. Butwith that fun stuff, it is the
summer, the market is rallying.You're having a great year. I am
having a very very good year.You're out performing once again on a one

(09:31):
year, two year, three year, four year, five years, six
year. While we can go back, it's a lot of years, it's
a lot of out performance. Clientsare happy, we're happy. You and
I are the biggest investors and weinvest right alongside our clients. Biggest investors
have done that for a very longperiod of time. That only makes a
lot of sense. Of course,of course it does, and we are

(09:52):
active managers. We don't We donot just by the SMP five hundred.
But we got a lot more totalk about on this fun show, this
beautiful summer weekend. Hope everybody's havinga great time, and we will be
right back. This is Josh Arnold, Mister money Talk with Judd Arnold,
always here to help you, whetherit's in stocks, bonds, mutual funds,
how you should position your investment dollarsincluding your IRA and four oh one

(10:16):
K call us nine five two ninetwo five five six oh eight. This
is Josh Arnold, mister money Talkwith Judd Arnold here to answer your questions.
When stocks bonds, mutual funds,how you should position your investment dollars
including your IRA in four oh one, K, do give us a call

(10:37):
nine five two nine two five fivesix oh eight. That's nine five two
nine two five five six oh eight. You'll always get straight talk, not
sure coded advice. Very interesting whenwe've talked about earnings coming in this week
that two large, large companies,two of the Magnificent seven that have been

(11:07):
leading the or helping to lead theSMP and the NAZ deck up, Netflix
and Tesla reported their their earnings.Both I would say would be more mixed
in terms of beating on the bottomline, but the top line being not
as good. Netflix showed that theywere going to have an increase in subscribers

(11:35):
for the next quarter and did saythat they were seeing an increase in revenues
over the second half. Tesla,I think a lot was expected of Tesla,
but their disappointment was in when theirnew cars would be coming out or

(11:56):
new trucks would be coming out,and that seems to have been delayed,
and both stocks sold off on Thursdayand Friday. I found that, I'll
say, kind of interesting, howfast both of those both of those companies

(12:16):
went down, the tech stocks ledfrom the bottom, and they're going to
be the first to top out.That that's the called I We've been talking
about this SMP five hundred verse equalweight SMP five hundred gap for a while.
We did have utilities breakout later thisweek, which is sort of the
ultimate opposite tech trade, if youwill. And transports are looking incredibly good.

(12:41):
I mean we had just let's justtalk about transport. We had awful
prints from Night, awful prints fromCSX, and the stocks really didn't care,
No, they did not care.You get add to that JB Hunt
a week ago, and I thinkthis just all goes to the market setup,
which is for the first half ofthe year, we had people both

(13:05):
bullish tech and hiding in tech andnot wanting to touch anything with any economic
sensitivity. And now that economically itdoesn't look like we're gonna in a recession
for the next couple of months,the spread is just so huge. If
you look at NASDACK versus banks orNASDACK versus oil stocks, you're talking sixty
to eighty percentage point differentials. Andnow Wall Street guys like to we'll say,

(13:31):
rotate from rotate rotate from one onesector to them. You said they're
eleven sp SMP five hundred sectors andyou know financials. Because one sector has
been a laggard, Energy has beenanother laggard lagger this year, Industrial the

(13:52):
industrial sector has been kind of mixed, and tech has been we'll say tech
and consumer tech, consumer discretionary havebeen leaders. Consumer staples has been not
a laggard. Is just there.Keep in mind stock reactions to earnings reflect

(14:13):
differences in embedded expectations, So oftentimespeople are always surprised. Company beats numbers
and the stock sells off, ora company misses and stocks cells up or
trades up. I should say peopleare very good at calling quarters. There's
a whole industry. I used towork with a lot of these people.
There's all this stuff about it inventedexpectations. If you want to play that
game, which I don't recommend,you're going to lose the people who invest

(14:35):
a ton of money to figure outhow to do that, and the even
nice struggle. So you really haveto take a bigger picture of you.
But I'd say, and the biggerpicture of you is just simply a lot
of stuff is rallied we have anup market, and you typically are going
to have the tail start to catchup. You're gonna have a little bit
of a ketchup trade. Well,in terms of having a ketchup trade,

(14:56):
some of the leaders, you know, might might be reduced to go into
some of the laggers. Oh possible, But like you know, all the
stuff is noising. You've held Applesince two thousand and four, that's correct,
and Amazon you've held you know sincewhat well this time throw since two
thousand and seven. And when youhold stocks for a long period of time,

(15:18):
I mean both these stocks are upfifty to one hundred x for clients
depending on when they got in.I will Apples up more than one hundred
x, but you're gonna have multipleperiods of time where they're out of favor.
And Amazon, Amazon, we justwent through a period of two and
a half years where seemingly nothing neededmanner, nobody care, and all of

(15:39):
a sudden, people care. Andyou look to decide time horizon. Are
you an investor or, are youa renter? And a lot of other
things, And for high quality stocks, it is it has proven best for
clients to just just hold for along period of time and we have our
trading portfolio, we portfolio, butwith our big ones, you know,

(16:02):
with Apple and Amazon, I thinkwe will readily admit they've had very nice
runs and they could do nothing forthe next twelve months. They could and
I've as I've said to to clientsevery quarter when it comes to Apple,
do be prepared for a little bitof a pullback just after the earnings are

(16:22):
reported, because there is going tobe some number that some analysts or group
of analysts does not like or isn'tup to speed or Apples. During Apple's
conference call, the CFO or theCEO is going to say something that is
going to be perceived as too conservativeor a little negative, and the stock
is going to sell off. Thesame is true with Amazon and we Amazon

(16:47):
have seen two quarters or saw twoquarters last year where on seemingly good numbers,
the stock dropped the twenty dollars ashare on the earnings and I was
like, whoa, what just whatjust happened and why? And some of
the commentary was, well, itlooked like AWS Amazon Web Services was not

(17:10):
going to be growing at the ratethat we thought it was going to be
growing. I'm kind of questionable,what do you mean, you've got an
eighty five billion dollars a year revenuerun rate business. It's not going to
grow at thirty percent at that atthat size. Amazon Web Services is more
than twice the size of microsoft'ss orand several times more the size of Google's

(17:34):
cloud, and those should be growingat a lot faster paced than than Amazon
Web web Services is right now.I think the belief is that with artificial
intelligence and the need for not onlymore storage for artificial intelligence plus um plus

(17:57):
the need for fast or chips,that that's going to be a boost to
all these companies to provide some typeof data, data storage or the ability
to track orficial in telling you,you're dancing around something that the core tenant
of how we invest We are growthinvestors. The number one driver of stock

(18:18):
returns on a ten year basis isrevenue growth. Now that might be a
little counterintuitive for people because people willsay, well, don't you care about
profits and earnings and just bear withus. On a one year basis,
if revenue goes up a lot,does that mean the company's making money?
Not necessarily, But if you raiserevenue ten years in a row, almost
by definition, you either have tobe profitable, or you have to have

(18:40):
an unbelievable funding source. So that'swhat we focus on, and this is
backed up by tons of empirical data. And so a lot of people get
enamored by value stocks. And keepin mind, everybody, at the end
of the day, is a valueinvestor. Growth investors are value investors.
We're all trying to do the samething, which is by pay less for

(19:00):
something than we believe it's worth.Correct the difference between what many people would
refer to as value stocks and growthstocks. What we try to avoid are
stocks where people say, well,the stocks at five, it's really worth
ten, and then you ask thepeople, would you buy it at ten?
No, I hate it. It'sreally boring at ten. It probably
just goes sideways from there. Andin those situations, you're never gonna get

(19:26):
ten. You might get seven,you might get in because somebody has to
be there to take you out ofthe trade. Somebody has to say to
themselves when it gets to your pricetarget, well, this is still interesting
to me. Because my time horizonslonger, I have a different view on
growth and whatnot. And with companiesthat are growing, we have found the
nice thing is one. Every yearyou hit your price target and you get

(19:47):
a little further forward and you say, well, now we have to raise
our price target because earnings are higher. So with Apple four or five years
ago, we were talking about howit was a five dollar earner. Now
it was a six seven. Nowwe're an eight fifty to nine dollars earner,
and slap a multiple on that,and you got to hire and higher
stock praise. The business compounds,as they say, over time, and

(20:07):
that's what we're looking for. Andpeople have gotten a rude, rude awakening.
This is I will I'll end onmy high now and I don't know
if you know where I'm going.Eight T and T the venerable if you
look at the sticker is T.People perceive a monopoly safe dividend and it
is a big piece of a lotof quote conservative portfolios. And Pete's looked

(20:29):
at as a value stock value stock, low PE multiple. Well, guess
what, low pe multiple stocks tendto be bad stocks. So while you've
gotten your dividend for the last thirtyyears, you have gotten your viewer stock
appreciation. Actually it's worse than that. The stocks has actually gone down in
value. And this year you know, the stock has gone I believe,
from about twenty five dollars a shareto fourteen dollars a year, even though

(20:52):
it's still paying the dividend. They'vebeen losing losing subscribers. At fourteen a
share, we are back at thenineteen ninety three price for the stock.
Oof. Oof that that seemed tobe I've just lost thirty thirty years.
So all I've gotten is the dividendover thirty thirty years, you got a

(21:14):
bond return. And by the way, if you would have bought the thirty
year bond back then you've got,you would have gotten eight and a half
percent yield. So with that,we got a lot more to talk about.
Do remember the disclaimer not investment advice. Please consult the financial advisor.
Not everything we talked about is suitablefor everybody. This is Josh Arnold,
mister money. Talk with Judd Arnoldhere to help you with your investments.

(21:38):
Whether it's stocks, bonds, mutualfunds. You should position your investment dollars
call us nine to five two ninetwo five five six oh eight. You
always get strict talk, not sugarcoatedadvices. This is Josh Arnold, mister

(22:00):
money. Talk with Judd Arnold hereto answer your questions on stocks, bonds,
mutual funds, how you should positionyour investment dollars including your IRA and
four oh one K. Don't hesitateto give us a call at nine five
two at nine two five five sixoh eight. That's nine five two nine
two five five six o eight.You'll always get straight talk, not sugarcoated

(22:25):
advice. Well, saw something veryvery interesting. Actually it was more than
just saw something very very interesting.Talk to talk to one of our neighbors
on the floor, and I actuallymade a comment about his his shoes and

(22:48):
the color of his shoes, andand and he made a comment as well.
His son gave him those those shoes. And I said, well,
the light pink does not match youryour dress. It's a little too ale.

(23:11):
If you want to wear pink,where bright bright pink. It's a
rich and a royal color. Hesaid, well, he does get comments
about these shoes and he loves them. He said, he's on his feet
most of the day and the shoeswere talking about these pink shoes, loose

(23:33):
color. I did not like whereCrocs and Crocs as a stock has done
extremely extremely well. And while Imight not like the color, nor even
wear Crocs shoes. This company hasbeen, we'll say, on fire for

(24:02):
a very long period of time.I have talked before about shoes and whether
in good markets or good economies orbad economies, people are going to buy
shoes, something that my father toldto talk to me about a very long

(24:25):
long time ago. And even hey, there was even a commercial made about
the shoes. It wasn't the basketballplayer. It was the shoes that made
the basketball player who he was.Now that Spike Lee commercial for Nike,

(24:48):
It's the shoes, not the basketballplayer, which was Michael Jordan. I'll
say that the Nike, the Nikeshoes made Michael Jordan, not the other
other way around. Now there aremany people that will debate that. But
we'll go back to Crocs, whosestock has continued to move up and could

(25:18):
almost be seen as a I'm notgoing to say a safe asset, because
sometimes shoes can be seen as ashort term trend. In the case of
Crocs, that trend has continued forquite some time. Crocs earnings, you

(25:38):
know, continued to climb, theirsales have continued to climb. They are
going to be reporting their earnings nextweek, so they're one of the one
hundred and sixty eight companies that isgoing to be reporting. And my guess
is that Crocs sales and earnings youwill probably be up in excess of twenty

(26:08):
percent when they report next week.And it would also be my belief that
Crocs, as many companies will do, will issue fairly conservative guidance for the
next quarter and the balance balance ofthe year. But Crocs has returned to

(26:30):
will say being a we'll call ita lifestyle brand. Another company in the
shoe business that has continued to dowell has been Deckers. Deckers known for
their ugs, ugs, boots andshoes trend that I've never been able to

(26:53):
understand, but that has done wellas well as Teva sandals. Now they
have Hoka running shoes or Hoka sneakers, which have been big big sellers.
Deckers Outdoor has has done exceedingly well. Their sales or due the same time

(27:22):
as Crocs or giving their earnings comeout at the same time as CROCS,
and I would pay attention to whatthey have to say about about sales.
Here again, with Deckers, i'dhave three called lifestyle brands, and I

(27:45):
think again earnings will be up.Sales are not going to grow you know
that that much, but I thinkthey'll be very, very steady. The
stock will say is reasonably priced butcould come in a little bit UH as

(28:06):
it has. UH has doubled invalue since UH since last year at this
time. But again, as Johnhas brought up in looking at a growth
stock like Deckers, for one,sales have continued to to increase and earnings

(28:32):
have have followed followed suit. Andthen you've had UH, You've had another
we'll say shoe company which did reportand their their next report is not until
the end of September, and thatis Nike. Nike's stock is you know,

(28:53):
has drifted down, but has upa little bit since since they're earned.
Fears with Nike has been sales notcoming in as much as had been
expected with a rebound in in UHor an economic rebound in China. And
when it comes to China, theireconomy is not growing as fast as had

(29:22):
been expected coming out of their COVIDCOVID lockdown, and indeed, China has
been cutting interest rates and trying tostimulate their economy to get some more economic
growth, and they're even providing someadditional support to some of the they're leading

(29:45):
technology companies including Baidu, Ali Baba, ten Cent, and JD dot Com
just to name a few companies whereI'll say leadership has been kept under wraps
for for several several years. Theseparticular companies could be seen as offering some

(30:12):
value, particularly those that are technologyrelated. But I'm a little bit we'll
say, I'm a little bit cautious, We'll say more than cautious in dealing
with those those Chinese companies because therecan always be a change in heart in

(30:33):
terms of how the government, theChinese government deals with them. On the
other hand, businesses, I'll sayUS based businesses that do business in China,
different story altogether. Apple does alot of business there, Three M

(30:53):
does a lot of business in China. American Express, Visa, Master Car,
Kentucky Fried Chicken, McDonald's, BurgerKing. So there are many different
ways that you can get Chinese exposurethrough investing in American companies. And that's

(31:15):
the way that I would much preferto, you know, to invest in
China. And that still is afast growing part of the world. Uh,
still a lot of money to thatis there. With the next the
next potential country driver being India,and again it'd be the same. We'll

(31:41):
say the same caveats UH would wouldapply. Now in talking about China,
we've talked about growing earnings. Well, we're gonna come back, or when
we come back, we'll talk alittle bit about some other China related stocks
and how they've performed, plus afew other pieces of information that can help

(32:09):
you. This is Josh Arnold Misteror money Talk with Judd Arnold always here
to help you with your investing.Do give us a call nine to five
two nine two five five six oeight. Do remember the usual caveats apply
past performance and no guarantee of futurefuture results. Markets are always changing investing

(32:32):
in stocks, as voldel. Whatwe share here is for information purposes only
and does not constitute investment advice.Does Josh Arnold Mister or Money Talk with
John Arnold here to answer your questionson stocks, funds, mutual funds,

(32:53):
How you supposition your investment dollars includingyour IRA and four oh one K.
Don't hesitate to give us call itnine to five two nine to five five
six o eight. That's nine tofive two nine two five five six o
eight. You'll always get straight thought, not sure coded advice. We ended
the last segment talking a little bitabout the China and Chinese growth at some

(33:17):
of the impact of China one Americancompanies and American companies such as Favorite Apple.
We could add Coca Cola, Starbucks, Nike, Tesla, three M,

(33:38):
General Motors to that to that listof companies that do business in China
and have a portion of their revenuesbenefiting from that Chinese exposure. And that
is the way that we have investedin that area. And I have found

(34:01):
through through the years that that businessesthat do have this type of exposure have
done pretty pretty well over over aperiod of time. That's not to say
that they go straight up, becausethey don't, but we found that that

(34:22):
has added added to the potential revenuesthat these companies have. That said,
one of the companies in an areathat I happen to like investing in leisure
related businesses, which could include travelrelated stocks, leisure related shoe companies,

(34:47):
or league We've talked about before,U Casinos, cruise cruise lines, U
Off drinks, entertainment all fit inthat leisure related category. And I have
found again during tough economic times peopleare spending money on leisure pursuits. Well,

(35:19):
one leisure related company on Las VegasSands, reported they're earning this path
past week. I think much wasexpected, and the results came in much
better than had been expected. Yeteven with better better results, top line

(35:45):
top line beat, bottom line justcrushed, crushed any of the estimates.
And the reinstatement of a dividend afteralmost a three year hiatus, the stock

(36:06):
sold off on the news and thatkind of kind of surprised me because and
business is very very good. Businessis expected to be a little better going
forward. And I was just alittle bit, will say, a little

(36:29):
shocked shocked at that because Las VegasSands has gone from not earning any money
to now earning earning money. Butthey do not have any more any outright
United States exposure. Uh well,they have a very teeny United States exposure

(36:58):
Las Vegas Sands, so they arethey make the bulk of their money in
Singapore and in Macau. And inlooking at the results in Macau while they
were up, I think analysts werewere of the belief that Macau results would
be ahead of at least by thistime Las Vegas Sands results from twenty nineteen

(37:27):
from before the pandemic shut essentially shutMacau down, and they were not.
So the belief I'm guessing is takethe profits, sell sell the shares,
and wait until the stock comes downa few more dollars before looking at it

(37:49):
again. But the results from UMMacau, even though they weren't up to
what analysts had thoughts, if theyare this good for Las Vegas Sands,
maybe they'd be at least this goodfor Win Resorts, which has exposure in

(38:17):
in Macau. And then if youadd to it the strength of Las Vegas
and wins other properties in the UnitedStates, that could be a boost for
for Win. So while Las VegasSands was down after their earnings, Win

(38:40):
Resorts, which does not report earningsfor another two weeks, that stock moved
up up this week. Plus wehad a move up in the other Las

(39:00):
Vegas related casino names. Favorite Caesar'sPalace has moved up and MGM MGM Mirage
also moved up and until Friday kindof broke out of its upper upper range.

(39:22):
MGM Resorts this week signed a we'llsay a deal with Marriott to We'll
say UM share benefits Wind Resorts orto me, MGM resorts sharing benefits with

(39:44):
Marriott, Marriott sharing benefits with UHMGM resorts. The benefit to Marriott with
this deal, in particular for BonvoyBonvoy Rewards UH points holders, is that
the Bonvoy holders and people getting onthe Marriott system now have access to another

(40:13):
we'll say, uh sixty thousand plusrooms through MGM mirage. Well, that's
a that's a big, big number, and there's there's one benefit for MGM
to get more uh more people comingto their to their resorts, plus getting

(40:37):
the Bonvoy points for Bonvoy points holdersgoing to an MGM resort plus um UH
if you're going to bet or ifthey're sportsbook betters, you get Bonvoid points
from using bet MGM UH, whichgives MGM a further boost for online gaming

(41:06):
against a crowded field which would includeuh WIN and Draft Kings and fan Duel
and Churchill Downs and Caesars and UHand pen Gaming or pen Gaming's barstool sports.
So going to be will say avery or continue to be a very

(41:31):
competitive space in within leisure. ButI just find this particular area not only
fascinating, but because people like totravel, people like UM I'll say,

(41:52):
convention goers or convention planners like LasVegas, and you have the sportsbook and
both now online and offline gambling.I think that these companies, even with
a tremendous amount of competition, couldbe very interesting going going forward. And

(42:20):
particular you not only have a bigsoccer tournament going on with the Woman's World
Cup, who we are now gettingready for football season and that's real big
with the betters. This is JoshArnold, Mister Money Talk with Judd Arnold,

(42:42):
always here to help you with yourinvesting, whether it's inside or outside
your retirement account. We do haveour opinions. Usual caveats apply. Do
remember this program is for information only. The ideas we share in the opinions
we share our own. Many ofthe investments may or may not be suitable

(43:07):
for you. Please consult an advisorbefore you go forward. Do call us
nine to five two nine two fivefive six o eight see you next week.
Josh Arnold Investment Consultant is a registeredinvestment advisor located in a state of
Minnesota. All securities discussed are forinformational purposes only. Investing contains risks,

(43:27):
including risk of loss. Consult yourinvestment professional before making any decisions about your
investment portfolio,