Market All-Time Highs, Trump Moves, and AI: Breaking Down a Wild Financial Week

This week on the Money Matter Show, Dave Sherwood, Todd Glick Jr., and Sebastian Borsini unpack the market’s record highs fueled by “Trumptimism,” despite global unrest. From Apple, Tesla, and Nvidia’s latest moves to Roth 401ks, FOMO investing, and Tucson’s real estate scene, the team covers what matters most to investors. Plus, a look at AI’s impact on the S&P 500 and why Visa and Mastercard are eyeing stablecoins. Tune in for sharp insights, smart planning tips, and a touch of Tucson flavor—only from Greenberg Financial Group.

Episode Transcript

Speaker 1 (00:00):
Good morning. It's Sunday morning, June twenty ninth, in the desert.
This is the Money Matters Show, with a chance of
rain every day starting tomorrow, said Dave Sherwood. I'm here
with Todd click Junior, or here with Sebastian Borsini, because
Todd the monsoon season is starting now. I've lived here longer.
I've lived here actually twice as long as either of
you have been on Earth, so I know a little

(00:22):
bit about this place. And several years ago somebody decided
that the monsoon season started June fifteenth, which is bunk.
Unless you live in Albuquerque. Monsoon season does not start
during fifteenth. If you're new to Tucson, you've been hearing
this relaxed. It's not true. The average number of rainy
days in June historically one, so obviously the monsoon does

(00:44):
not start June fifteenth. I don't know who came up
with that, but it's been recent, like within the last
few years. Monsoon season starts to July first, really kicks
off on July fourth, that's kind of the and it
doesn't last till September fifteenth, typically a last helth the
end of August. Ready for them, and we are so
desperate for rain that we hope God's miles on our
state over the next sixty days and brings us the normal. Well,

(01:08):
how about this two and a half inches is the normal?
How about he brings us three and a half or
four inches. We certainly could, we certainly could use the rain.

Speaker 2 (01:15):
Well, we've been raining money too in the markets.

Speaker 1 (01:18):
Been raining money, and that, you know. I always looking
to see what the big headline for the week was. Man,
was this easy. I'm sitting Saturday afternoon playing soccer with
my grandson with his soccer games, indoor soccer game, a
little warm outside, and I see on the news newsflash,
Trump drops the bombs on Irun. I go, oh, my goodness,

(01:40):
this is not going to be good. This is I
don't know what's going to happen next week. I don't
know what the mark is doing. I thought, Sunday afternoon,
the futures start to trade around three o'clock our time.
I thought down probably one thousand, maybe fifteen hundred.

Speaker 3 (01:54):
They were done, what three hundred points, one hundred.

Speaker 1 (01:55):
Points, Yeah, they were down one hundred points, And I thought, okay,
so what's going on here? Well, what's going on here?
Is that there was little or no retaliation. I think
I ran shout off six missiles. Somebody said that they
called let us know they're going to do it. I
don't know that's true or not, but.

Speaker 2 (02:10):
Yeah on the bassin guitar.

Speaker 1 (02:12):
Yeah, yeah. You can't believe the news. So if the
news says something happen, you'd have to double check it about.

Speaker 2 (02:17):
Well, yeah, they said that they told them to limit
civilian civilian casualties. Was the idea, Yeah, well it was
a it was a nothing burger and.

Speaker 1 (02:25):
Yeah, we just to say faith right, and and no
other countries responded, and it so it appeared to the
market that hey, this is this is good. Here we
go and let's get some trade deals. And I ran
not going to have nuclear and uh, the world's going
to be a sunny place and let's get it on here.
And I think with oil, you see oil oil collapsed

(02:47):
down ten bucks.

Speaker 2 (02:48):
I mean, that's a crazy collapse because it lost pretty
much everything that had gained the several three weeks before
leading up to the conflict.

Speaker 1 (02:55):
And that was literally an hour after Goldman. Sachs says,
if I ran closed the trader from which essentially would
cut off their income, they have nothing else they would
also cut off their income. So they're not going to
do that. But Goldman Sachs said, if they do that,
while I was going to one hundred dollars literally an
hour before it collapsed. So another great call. Seems like

(03:16):
the entire world, with the exception of the Congressional Democrats,
are on board with this action. And we all know Iran,
we all know this isn't over right.

Speaker 3 (03:26):
Well, I didn't understand because they said that there was
going to be a ceasefire, and then the next morning
Israel head shut off a couple of missiles.

Speaker 2 (03:33):
Now, a part of any ceasefire is the timing of it.
And when you have a ceasefire, normally happens after the
night closes, because the next day, when daytime breaks, you
don't have as much shooting. Most of the shooting happens
at night. So you would say the ceasefire ends at
twelve that night. Well Trump didn't like that. You know,
probably three in the morning, four in the morning whatever.
Israel did a lot of bombing Iran, assuming they did

(03:56):
a couple two or whatever. By the end of that
day there was no more retaliation or anything. So the ceasefire,
as far as I'm aware, is still in effact. It
is strong. It's just the fact that it is kind
of tricky of when exactly a ceasefire is going to
take place, because especially with Iran, their entire military communication
network was absolutely obliterated. So how do you communicate to

(04:18):
someone in a cave somewhere that they're not fighting the
Israels anymore?

Speaker 1 (04:22):
Right?

Speaker 2 (04:22):
I mean, it takes a while to get that message
spread if you don't have a network, and we know
that it's already been compromised.

Speaker 1 (04:29):
I think the deadline was six hours after Trump announced
the ceasefire in Israel. Took that six hours download everything
they had on Iran, which is good, which I know.
I understand that these folks are not going to be trusted.
They've never been trustworthy. They've never held up to any
agreement they've ever made. And it's sad because you go

(04:49):
back to the seventies Iran and was a real friend
of the unit.

Speaker 3 (04:52):
You still have Iran out there saying that they want
to continue their nuclear process.

Speaker 1 (04:57):
Well yeah, they know they still want that, and they
want jihad, you know, which essentially is defending the Muslim
faith against others. Right at war with that said, if
this does, if this action will actually make Iran come
back to the nineteen seventies, which is when they were

(05:19):
a friend of the United States and a powerhouse in commerce,
If that will take them out of the fifteen hundreds
and bring them into the you know, into the twenty
first century, the Middle East could be a really different place.

Speaker 2 (05:33):
And the way the media is trying to spin this
as it being unsuccessful, it's really disgusting. I mean, if
you really look at the fact that the one leaked
material that came out of the Department of Defense was
not a completed article. I mean the way that works
is it goes up the chain of command to get
confirmation that it is done, and it was a half

(05:54):
done report that said that it did not do as
much damage as Trump said. Trump originally said, we totally
obliterated their program set the back years, if not completely.

Speaker 3 (06:04):
That's because everything that he does is wrong.

Speaker 1 (06:06):
Well, and efforts are underway to find the person to
leak that, and it's a criminal it's a criminal's case
if they can find that person. And then of course
CNN ran with it because they do everything they can
to Trump, so they and his mission.

Speaker 2 (06:19):
Is incredible what they did. I mean, the B two bombers,
if people don't know what they are, just incredible feats
of engineering. But then on top of that, you have
a bomb that goes two hundred feet into the ground
before exploding and then explodes.

Speaker 1 (06:32):
And they got six of those?

Speaker 2 (06:33):
How you do how you got six?

Speaker 1 (06:36):
Got six of those? Now, how's that gonna work out?

Speaker 2 (06:38):
And I believe what if I read correctly, the B
two bomber took off somewhere in like Missouri.

Speaker 1 (06:43):
Missouri, Missouri, thirty two hour round trip, like thirty two
hour round trip, flew from Missouri to Iran, dropped six
bunk or buster bombs and then return of Missouri. Is
that amazing? I mean that's just mind boggling. Yeah, for
our military, right for all for.

Speaker 3 (06:59):
All the listeners. If you haven't yet seen how that
bunker buster bomb works, I highly recommends you go on
YouTube and search bunker buster bomb. It's really neat.

Speaker 2 (07:07):
Yeah. And if you look at you know, hegseeth the secretary.
He was really defending the fact that this was the
Leads report and what they have the intelligence as say
that they were set back years.

Speaker 1 (07:19):
All right, If you if you're not on board with this,
at least to the extent of great job. Something's wrong
with you. Because it was a great job. Our military
just performed beautifully. And to be able to fly from
Missouri to I ran and drop those things down a shaft,
are you kidding me? From fifteen thousand feet? It's just
so darn impressive.

Speaker 2 (07:40):
And I feel like you compare that to the fact
that the previous administration, instead of solving the nuclear problem,
they're giving millions and millions of dollars for safe sex.

Speaker 1 (07:50):
Billions for millions of dollars, safe sex, safe millions of
dollars too. I ran to to to get them to
come to the table, and Israel said, you know, well,
we've had enough. We've been doing this for twenty years.

Speaker 3 (08:03):
Let's kill and the Trump comes in and ends.

Speaker 1 (08:05):
Trump comes in, Well, let me put the exclamation point
on it. And it's just a very impressive job by.

Speaker 2 (08:11):
Twelve days to have a war end in twelve days.

Speaker 1 (08:13):
Yeah, Well, it's typical Israel. It's kind of out of
our wards. Go.

Speaker 3 (08:18):
Something I actually found out about this week the genocide
going on in the Congo that was also put to
an ends through Trump's policy and still working on.

Speaker 2 (08:27):
I don't know if it's technically at an end. Yeah,
because it's gone. It's been going on since the night,
I mean.

Speaker 3 (08:31):
Is right regardless, there's there's action that's been taken.

Speaker 1 (08:36):
Finally, yeah, right, Well you heard the Trump piece peace
through strength, and I will guarantee you that the United
States enemies, whether it be Russia or China or North
Korea or whoever. I observed what happened and went, oh wow.

Speaker 2 (08:52):
I love what Trump said too. He said, uh, you know,
Putin called him and said we can broke her a
peace deal with between on in Israel, and he said,
I don't need you to broker a piece to between Israel,
raw I needs your broker a piece between you and Ukraine.

Speaker 1 (09:06):
You know.

Speaker 2 (09:06):
It turned it back on him to say, no, you
have your own war. You need to solve this.

Speaker 1 (09:11):
I want to heard Trump say on Thursday that I
ran wanted to talk to that. I want to talk
to him. I got to talk about I don't how
want a deal. We're done, you know, And I think
that's that's really way. I think we all agree props
to our military props.

Speaker 2 (09:24):
And also a really good job of him saying we're
going to have a two week window to make a
decision and then taking only two days because that was
you know, the smoke and mirrors. I mean, as a
commander in chief especially, and everything is so public these days,
how do you have a secret operation? It's a very
well done that.

Speaker 1 (09:41):
And then, of course on Friday was a Thursday afternoon
of Friday, the trade deal with China, which your fears
to be a real trade deal. The market did sell
off briefly Friday afternoon after Canada in the US suspended
trade talk. But that's Trump, That's the way he operates.
Do you want to do that? Okay, fine, we're done. Yeah.

Speaker 2 (09:59):
And then the Mark we don't need right back at
the end of the day.

Speaker 1 (10:02):
We don't need you. If you were a state, you'd
be the number four state, you know, stop it and
bounce right back at the end of the day. Because
they know that something will come out of this.

Speaker 2 (10:11):
I mean, the only thing you could say for sure
is probably lumber that they could squeeze us for. Yeah,
but I mean I don't think we get a lot
of oil necessarily from them either.

Speaker 1 (10:20):
Now they do have rare earth minerals in Canada. They
could help us certainly they can do some things for us,
but I mean, we were the eight hundred pound guerrilla. Certainly,
I'm in North America, and uh, that's just the way
Trump negotiates, and Okay, fine, I walk away.

Speaker 2 (10:36):
And it's really interesting what they're going to do with Mexico.
I was just talking with a client this week about
how a lot of you know, operations that they do
in Mexico are so well incentivized that they'll have like
daycares for the people. And even though they're providing all
these extra incentives to make sure people show up to work,
it's way cheaper than having to pay a union in
Ohio or minimum wage to an American worker. So I'm

(11:00):
really curious to see how Trump's going to get around
that problem, or whether he's just going to go near
shoring instead of complete on shoring.

Speaker 1 (11:08):
New all time high for the S and P five,
new all time high for the NASDAQ one hundred last week.
Never been this high. A lot of enthusiasm. I'm calling it,
a lot of optimism, which I'm calling trumptimism. We've been
using that term. I think that's probably very true. It's
not so much optimism as trumptimism. You feel confident that
this guy's going to get the job done, whether it

(11:29):
be Iran, or whether it be the trade deals, or
whether it be the economy.

Speaker 2 (11:33):
And I think what also though you see is the
AI revolution, right, I mean this AI revolution through this war.
It's like every time there was a conclusion of some
part of the war, the market just kept going higher.
And now we are higher than where we were before
we had any of these tariffs, which seems a little counterintuitive, right,
you would have said, if you add terriffs, doesn't that

(11:54):
slow down growth at some point?

Speaker 1 (11:56):
It certainly raisious prices. It's gonna you can talk all
you want about how it's not going to raise it's
going to raise prices.

Speaker 2 (12:02):
It's just to lead from the short term.

Speaker 1 (12:03):
We know that it's going to be a tax on
the American people that's going to go straight to the
budget deficittion.

Speaker 3 (12:08):
Right, and which inevitably slows growth.

Speaker 1 (12:11):
Yeah, you would think it would have to so on
I think.

Speaker 2 (12:13):
But on the other side of that sloyal growth, we
have the AIA. So it's like we have this like
two edged sword where AI the hope is it's going
to grow, so much right, and we see this Navidia
back to all all time most valuable company right now,
well over three trillion dollars got over Microsoft. Even though
Microsoft hit a new all time high as.

Speaker 3 (12:33):
Well, they hit five hundred this week. Did they close
over five hundred Microsoft?

Speaker 2 (12:37):
I believe, so Microsoft knew all time high. I mean,
we got many companies, the Max seven are doing very well,
very well, except for the Tesla and Apple.

Speaker 1 (12:47):
Yeah. Yeah, Tesla just continues to be a mystery to me.
It was up ten percent on Monday after they rolled
out that robotaxi in Austin over the weekend. But by Monday,
uh and Dan ives. By the way, Dan ives, he's
a noted analyst. He took a ride in and he
said it exceeded his expectations. Even Tesla baar ubs raised

(13:09):
their price target from one ninety to two fifteen. Now
never mind the stock with a three forty when they
did that, So I went from one ninety to two
fifteen of the stock at three forty. But on Monday,
Tesla also was contacted by the National Highway Traffic Safety
Administration after videos were posted on social media showing the
company's robotax and driving erratically, including going down the wrong

(13:31):
way down to one Way Street.

Speaker 3 (13:32):
Oh no, did you have any more details on that,
because Todd was saying earlier this week that all those
cars had drivers in him or maybe not all of them,
but yeah, good amount of them.

Speaker 2 (13:41):
The reports I was reading that, well, I think only
twenty were actually released.

Speaker 1 (13:45):
I didn't think there were that many, but there could
have been. Yeah. But but just but you know, if
you if you're not Waymo, I mean Wayno's been doing
this for five years, Todd, and they've got it down.
I mean, you see him around Photex. You don't even
think about him. No, you don't eve give him a
second thought. No, you don't worry about him.

Speaker 3 (14:01):
I'm sure other people do. I think we say that
because we're so close to Phoenix.

Speaker 2 (14:04):
Yeah, I mean there was a friend coming from Pennsylvania
that came to Phoenix and they saw the way Mos
for the first time and they're like, there's no driver.
What do you mean there's no driver in that car?

Speaker 1 (14:13):
Right?

Speaker 2 (14:13):
And they're like, what are all those things on the
So we definitely have gotten used to it, but from
the outsiders, and that's because of Phoenix having that Sandbox
Act that allows the Waymo and Cruise and some of
those self driving vehicles to take a bigger leap forward
without the regulation red tape around it.

Speaker 1 (14:32):
Now. No, no, Not only did the debut of the Robotaxi
not go terribly smoothly according to social media, but they
also got a report last week that their European sales
declined for a fifth straight month, down twenty eight percent
versus last May, as Europeans seem to be turned off

(14:53):
by Musk and they're moving towards Chinese vehicles. Yeah, and
that's crazy.

Speaker 2 (14:56):
Did you also see he fired his head of manufacturer. Yeah, yes, yes,
which is an interesting move.

Speaker 1 (15:03):
A close guy, a close associate, I mean, he was
an important.

Speaker 2 (15:06):
Guy, right and not just like let go. It's like fire.
So there's definitely some type of strife there.

Speaker 1 (15:11):
And let's hope it was some personal thing he did.
Let's hope he was messing with the wrong gall or
something that wasn't just Trump being or must be a Musk.

Speaker 2 (15:21):
Yeah, you know, but he was huh, it's a big
position of fire.

Speaker 1 (15:27):
Well, he was also involved in space X. He was
brought down to space X to help moskeet. Oh you know,
he was worked very closely. This was a close associate.
So the only thing I can, of course, if you
if it was some egregious thing, some violation of company
ethics or whatever, you think, he would be allowed to
resign right right, as opposed to getting fired right And

(15:47):
and can you be fired because your sales are plummeting
because you alienated Europe with your behavior in Washington?

Speaker 2 (15:56):
Not his fault, right, you know, interesting move out of Tesla,
and that that company continues to stay overvalued as much
as it has this beautiful future of the robots. I
mean it kind of is already trading with that priced in.

Speaker 1 (16:09):
It's it's arguably extremely expensive stock, not an attractive stock.
And uh, they're they're they're banking on the ROBOTAXI, which
so far has been kind of a little bit of
a problem.

Speaker 2 (16:22):
And what I also saw this week on CNBC was
a fun would you rather question? Was uh uh Google?

Speaker 1 (16:30):
Uh?

Speaker 2 (16:30):
Microsoft or Apple?

Speaker 1 (16:32):
Sure what you're gonna? Yeah? I like Apple. I think
it's just I think the potential for Apple is is
pretty significant, but potential significant for all those companies. Google.

Speaker 2 (16:46):
Yeah, I'm thinking Google myself. I just the problem with
Apple for me is the long term market share of
their phones. They have a real competition with AI wearables
in my opinion.

Speaker 1 (17:00):
Uh, potentially, I was I was at a restaurant the night.
You talk about the glasses and stuff like that.

Speaker 2 (17:06):
It might be a glasses, but I'm just saying in general,
there's just so many of those wearables that when they
come to market, I feel like, eventually the phone's not.

Speaker 3 (17:13):
Going to be it, right, because remember when phones first
came out, there were a lot bigger than what we're
holding today, the iPhone? Right, will it keep getting smaller
and smaller?

Speaker 1 (17:23):
Right?

Speaker 3 (17:23):
Is this iPhone here in my pocket? Is it too clunky? Maybe?
Maybe it gets to that point. So what if there
was a contact version of a phone? What if, like
Todd's saying, there's a meta glasses that you put on
and you could do everything that you typically do on
your phone. Three glasses.

Speaker 1 (17:37):
Yeah. First of all, I was at I was at
a restaurant a week ago and there were six It
was a little bit four or five. I was a
little early and they had shift had to start yet,
and there were six of the employees, all of the
them I know, sitting around, you know, chat and have
a little snack or whatever, and that this came up.
The glasses came up, The glasses with the Internet functions
all on it came up, and I said, okay, yeah,

(17:59):
six people, all of them under twenty five. Of these
six people, how many of you think that's a great idea?
One the other five said not, yeah, no way.

Speaker 2 (18:08):
Well, also ask them how many of them bought bitcoin
in twenty fourteen. I, like most people don't know how
to think in the future. I mean, who would have
thought a computer was why do I need a box
that does something?

Speaker 1 (18:22):
I can't imagine anybody over there to forty one glasses
with the Internet screaming across it. I just I don't
get it doesn't appeal to me at all, and it
didn't appeal to five of these six young people.

Speaker 2 (18:32):
But I also didn't think that someone your age and
the vast majority people your age could easily work an iPhone.
But we've gotten to that point.

Speaker 1 (18:40):
Yeah, Oh, the iPhone is simple.

Speaker 2 (18:42):
I mean, well it wasn't always. Yeah, I guess because
the user interface got so easy to use that anyone
can use it. And that's the whole purpose of technology.
It is very complex until you can make it very simple.
And that's the job of Apple. Right, you had a picture,
you had a calculator, you had a contact book, all
merged into one thing. A host of other different use

(19:07):
cases you can use the phone for.

Speaker 1 (19:08):
Sometimes we come up with incredible technological advances that nobody wants.
That happens. I mean, you guys will admit that happens. Yeah,
I mean the vision pro Yeah, I think that that
the whole uh, put the glasses, put the headset on,
and and experience this other world, you know, has kind
of other than our cade.

Speaker 3 (19:26):
But I don't think that's That's not what these glasses are.
And that's you can't think of those like that. It's
glasses that you're just walking around every day and message
pops up on, you know, the top right corner of
my eye.

Speaker 1 (19:36):
I don't want that. I don't I don't need it
to happen on my glasses. Okay, I don't want to
be It's annoying enough already, I don't need it annoying
even further. Anyway, that's a that's for another day. I
think it's uh uh, maybe some technological advance that isn't
going to be that widely.

Speaker 2 (19:52):
But my purpose of the Apple debate is saying they
need a new product's cell phone forever, because that's not
going to warrant the growth rate, the training.

Speaker 1 (20:00):
They need to buy somebody. They need to buy some
company that's thinking outside the box. That's what they need
to do, uh, to to break this logjam they're in.
We did, however, see on Friday, with the market having
moved so strongly to new all time highs of people
looking for what hasn't moved, and Nike gotta bid, United Healthcare,

(20:23):
gotta bid, Apple, gotta bid. All those stocks perform better
on Friday because we're getting to the point where everything
is either add an all time high or close to
an all time high. So what is there out there
that's a goodbye? And I would I would say this
with a lot of years of experience doing this, this
is not a time to be all in you just

(20:45):
this is. And of course it's not a time to
be out either. It's a time to be cautious. Uh.
Maybe those laggered Dow stocks, the United Healthcare and things.
And let me also say, see if you want to
do the disclaimers go at the end of first.

Speaker 3 (21:00):
Assurement sort of thing show a sponsored by the Greenberg
Financial Group, and you can listen on seven ninety KNIST
or iHeartRadio. The show discusses different investment products and strategies,
and every product and strategy have some type of an
inherent risk associated with it, and we strongly encourage you guys,
our listeners, to properly understand this risk to determine whether
to buy, sell, or hold. Show has been on air
for over thirty years and the Greenberg Financial Group is

(21:21):
registered with the SEC. Visit our website at Greenberg financial
dot com for some more information. You could give us
a call and book a free financial planning meeting at
five two zero five four four four nine zero nine.

Speaker 1 (21:31):
And you guys are still doing those, so thanks for
whipping that in. It kind of led into what I
was going to say, and that is any stock you
hear about on this show is not a recommendation. Don't
take it as a recommendation. Our purpose here is to
be factual and hopefully have a little bit of fun.
And we don't know your investment objective, We don't know

(21:52):
your risk tolerance. Nothing we mentioned, no stock we mentioned,
no strategy we mentioned, is intended as a recommendation to you.
Is def yi. That's why I want you to.

Speaker 3 (22:03):
And a great points on that. It's like we've been
talking about MP materials for since twenty dollars a share, right.
We liked the stock at twenty dollars. Last week I
talked about how I don't really like it here at
thirty eight and whatted to do. On Friday it fell
ten percent. So if you're one of those people that
you know for one of the first time listening, maybe
go listen to one of our other shows and you know,
get some backtrack.

Speaker 1 (22:21):
Speaking of which, how about the Circle of Internet group.
We talked about that it came public at thirty one
dollars back on June fourth. June fourth went to two
ninety nine. This is a company that's involved in the
stable coin and it was down. I think it closed
Friday at thirty forty percent off that high. Forty percent
in three days off of that high. Yeah, And I

(22:44):
think to myself, even if stable coin becomes the law
of the land, it's going to take years to monetize,
years for this company to make good money off this.
Wouldn't you agree to Well, the good.

Speaker 2 (22:59):
Money is the interest that they're receiving onto it. So
the monetizations already happened already have the ideas how much
can it scale? No, I I mean, so when you
look at the valuation of the business, never should should
circle the company warrant a market cap that's bigger than
the total circulating market cap supply of the thing that

(23:19):
they issue, which is a USDC. No.

Speaker 1 (23:21):
Exactly.

Speaker 2 (23:22):
At one point their their market cap when it got
up to over two twenty was that's almost ten billion
dollars more than all the circulating supply of USDC. And
that's not even what they make the money on. They
make the money on the interest on that money. So
if they have sixty billion of USDC, they're making four
percent on that. That's their real revenue. And then you

(23:43):
may warrant an eight you know, eight times premium to that.
But yeah, I mean, it was trading way way too high.

Speaker 1 (23:52):
There were some really smart people that got in a
room and spent hours and hours trying to figure out
what they could get for the stock, and they figured
twenty eight bucks a share. They finally got it, there's
a little more demand than we thought. So they came
at thirty one dollars. This year they went to nearly
three hundred. So you've got to be careful of stuff
like that. Again, we thank you for joining us on

(24:13):
this day before the monsoon rains come. Come on, God,
listen to me. We need it, we want it. We'll
be back right after this break. Thanks again for joining us.

Speaker 3 (24:23):
Welcome back to the Money Matter Show. My name is
Sebastian Borsini here with David Sherwood and Todd click Junior.
Back of a week in the market's hit an all
time highs in the s and P five hundred and
sixty one eighty seven was a close on Friday, just
keeps going.

Speaker 1 (24:35):
One of the things you guys, I bet here more
than I do. When you sit in a meeting with
a client, a financial planning meeting, and this client, this
particular client, has done the right things and they have
a million dollars in their four one K. They hang
out with other people that have a million dollars in
their four one K, so they think everyone has a
million dollars in their four one K. I can't tell

(24:57):
you over the years how many people I've met with
that have one, two, three four million dollars and think
everybody has one, two three four million. So I did
a little research on this to just if you're one
of those people out there that sitting with a million
or two or three and you're four to one k.
Get this. Social Security represents fifty percent of the income

(25:18):
for fifty percent of retirees. So of your income, fifty
percent of your total income is social Security for half
of the people out there are retired. You want to
know what the median four to one K balance is
for somebody over sixty five? The median for one K balance.

Speaker 3 (25:34):
I'd guess like seven hundred thousand dollars.

Speaker 1 (25:37):
How about ninety five? Oh, ninety five thousand dollars? Is
the median four to one K balance for people sixty
five and older? The median US household savings. Now we're
not talking about just people sixty five and older. That
was sixty five and older ninety five grand and your
four to one K household savings for everybody, the average

(25:59):
household safe in the United States median I should say median.
You can't use average when you looking at things like
this because if somebody has if you have Jeff Bezos
in there, it's gonna skew things right, So you need
median median being the middle number. So when I talk
about four one K Ballance sixty five and ninety five thousand.
There are people that have ten million in their four

(26:19):
one K, and there are people that don't have a
four one K. The middle guy has ninety five grand,
so on the US median savings, the middle guy eight
grand a grand in total savings. Fifty percent of Americans
could not handle a one thousand dollars unexpected expense. Fifty
percent could not handle a one thousand dollars unexpected extent.

(26:43):
So if you're sitting out there with a four one
K with one two three million, very good job. That
doesn't happen by accident. That takes planning and props to you,
and not everybody has a million dollars. Yeah.

Speaker 2 (26:56):
That came out of the Vanguard report that they come
out each year about four to one K plans, and
they had some interesting other stats about specifically ROTH contributions.
Eighty six percent of plans now offer ROW four to
one K options. That's up from seventy four percent and
twenty twenty.

Speaker 1 (27:12):
Eighty six percent of companies.

Speaker 2 (27:14):
Six percent of plans, oh plans.

Speaker 1 (27:16):
I'm sure, I say clients.

Speaker 2 (27:17):
Yeah, eighteen percent of participants use them and is a
record high eighteen percent yes, eighteen percent. But that's it.

Speaker 1 (27:25):
Oh, that's lame. It's a record high day, that's flame.

Speaker 2 (27:28):
And that's why it's it's just education. I mean, we
had a client come in here today on Friday, and
you know, it's all about education. You know, when you're young,
you don't necessarily know that having ten plus years of
compound free growth anything over ten plus years, it's going
to well overdo the savings you could have had on

(27:48):
the front end.

Speaker 3 (27:49):
Yeah, this is a guy that's you know, Rayth, the
unemployee does great for himself. What's the way twenty five
percent of income in a year, And it's just coming
into having that meeting that we you incorporate that into
the financial plan and just making that little tweak. Hey,
why don't you from the you know, move those out
reallocate from the pretext bucket into the post text boocket
because that trade off is a lot higher, a lot

(28:11):
better for you.

Speaker 1 (28:11):
But I guess and it goes back to there's no
immediate benefit to a wrath, no immediate benefit. And it
kind of reminds me of the New York City election
this past week. Did you see that.

Speaker 2 (28:21):
That's an interesting that's one of the are you going
to connect that one?

Speaker 1 (28:24):
Huh?

Speaker 2 (28:24):
How are you going to connect that one?

Speaker 1 (28:25):
I'm going to connect that because it's it's instant gratification.
You know that, Like there is no there's no benefit
to doing a wroth, right, So so so why would
you do that? So why would you vote for a
politician who's not going to give you a whole bunch
of free stuff? This guy's going to give you a
whole bunch of free stuff, right? iMedia gratification? Uh, funding

(28:46):
your four oh one k in this traditional manner, immediate gratification.

Speaker 2 (28:50):
Yeah, And I don't think most people even understand even
feel that immediate gratification from that taxingravings. You don't probably
even notice it.

Speaker 1 (28:57):
I know I did, But then back then, there weren't
any ross when I first started, So then the roth
kind of started to trickle out and you kind of
didn't know what it was.

Speaker 2 (29:05):
And yeah, I mean, if you're putting twenty thousand into
a four to one K and you're making around one
hundred k, I mean, the tax savings on that means
that you're just not getting tax one hundred k, you're
getting taxed on eighty k instead. But that difference is
not huge. And again if you weigh that against ten
plus years of compound free growth and offset that versus

(29:29):
tax deferred, you'll see how much the difference. Because we
talk about this all the time. A million dollars in
a four one K at sixty is not a million
dollars if it's in a traditional and.

Speaker 1 (29:37):
We run into that all the time. Man, well, I
think we'll run into it left and lets as we
go forward.

Speaker 2 (29:42):
I think you've got only eighteen percent, Dave.

Speaker 1 (29:44):
We have so far. We got our job to do
at job.

Speaker 2 (29:47):
We got it with education. So people who are listening,
tell your grandkids, right, anyone who's under fifty really should
entertain this idea of using the roth.

Speaker 1 (29:56):
If they're funding a four oh one K and they're
not using the wroth four to one kN and they
did available, that's a mistake.

Speaker 2 (30:01):
The eighty six percent of plans now have it, they
need to do that.

Speaker 1 (30:04):
I mean it's really a samplein we can do the
math if you'd like us to time.

Speaker 2 (30:07):
Most people don't know that you can also do the
wroth iray on top of the Wroth four one K
as long as you're under a certain limit of income, right,
and so you can even put more away.

Speaker 3 (30:15):
Right, and for the people that you know make over
the income limits can't open up their ROTH iray themselves,
and you have access to that ROTH bucket and your
four one K plan, that's a great way to get
that tax benefit.

Speaker 1 (30:27):
Yeah. Yeah, because that's curt income level. You can't do
a WROTH correct. I believe it's not a big number.

Speaker 3 (30:33):
It's for single filers. I believe it's close to one
hundred and fifty thousand dollars.

Speaker 2 (30:37):
And fifty eight I believe now that's modified to justic
gross income. And there is still ways to contribute to
irays and then convert it to the WROTH each and
every year, and and it's just a back door way
to get it into the WROTH. But you know, there's
there's many good ways to put into retirement, but ROTH
is the best account. And the only account better than
the WROTH is HSA. And mostly the don't know about

(30:59):
h says how that can be used as another retirement
vehicle as well. I mean, after sixty five, you don't
have to necessarily use that money for medicare. If you do,
you'll still pay taxes like an IRA would, but it's
not tax or penalized.

Speaker 1 (31:13):
Right, And that wasn't clear when the HSA first came out.
It was it was it was strictly for medical care.
And if you did, if you were healthy, you think, well,
why am I putting money here? You know, I'm not
going to ever need this? And if I don't need it,
then what happens? We'll use it eventually, I guess. But
if I'm on Medicare advantage and I don't have any
co pay that, well, any what.

Speaker 3 (31:32):
Good does it do?

Speaker 1 (31:33):
You can't use that's change right?

Speaker 2 (31:35):
And you can use hsas for premiums now too sure
even a whole use this for uh gym memberships.

Speaker 3 (31:43):
You use it for massages. You can use it for accuput.

Speaker 2 (31:46):
My ankle this wet last week playing basketball, so I'm
not gonna be running for a while. And I had
to buy a boot. You get HSA for the boot
on Amazon.

Speaker 1 (31:52):
Yeah, it worked fine.

Speaker 2 (31:53):
You know, all kinds of stuff you can use HSA's.

Speaker 3 (31:56):
For going back. Those are roth Ira income livings for
twenty twenty five. If you're a single, one hundred and
fifty thousand dollars in could call less than two hundred
thirty six thousand dollars for those filing jointly.

Speaker 1 (32:04):
Good call. I should expound a little bit on that
New York City election because I brought it up. It's
really mesha scratch her head. In a city with the
largest Jewish population in the country has elected in their
Democratic primary a Muslim socialist. This guy is very has
some very strange ideas free city buses, going to tax

(32:28):
the top one percent until they can't breathe anymore. It's
just very, very bizarre. And of course he was running
against Andrew Cuomo, so kind of like, are you voting
for this guy or against andre This guy was? This
guy that won was a little known New York assemblyman
when he decided he wanted to run for mayor of
New York City and he wins the Democratic primary. Now

(32:50):
the good news if you're in New York. He's going
up against Mayor Eric Adams is running as an independent.
It's the current mayor is running as an independent, so
it'll be the the social.

Speaker 2 (33:01):
And I saw his interview with CNBC on Friday, Eric
Mary Adams. He said that he's an independent with still
Democratic ties.

Speaker 1 (33:11):
Yeah, so you know that.

Speaker 2 (33:14):
Yeah, I mean, he's he probably will win. It looks
like but Yeah, it was quite a surprise.

Speaker 1 (33:21):
Well, you've been very critical of Israel, and he refuses
to accept their ability to exist as a state. I'm
not sure what that's all about. Yeah, I don't. I
don't get it anyway. That's one of the mysteries of
last week. For sure. We've got a lot of enthusiasm
in the market, a lot of fomo, a lot of
fear of mything out. We saw that Monday when the

(33:43):
bomb dropped, and the reaction was the market opened higher,
oil prices move lower, never goes. Oh my goodness, I
better get on board. If you were short the market,
you were recovering so fast you can you couldn't see straight,
and you're putting cash to work. And I got to
get into here quick and boom up we go, and
now we finish. We got one more day of trading

(34:05):
in June, and at the dependent on how much let's
assume Monday closure is flat, you've got a sixty day
market return of ten point eight percent. That's above the
annual rate of return historically, so pretty good.

Speaker 2 (34:19):
Yeah. But if you just think about the fact that
our we have such a dumb other side to think
that if you tax people more what are they gonna do.
They're gonna take their business and go somewhere else, So
then that entire tax base will go away completely.

Speaker 1 (34:37):
So is that.

Speaker 2 (34:38):
Better than having? Like they just don't think. They don't
even understand game theory of how if you do this,
this will happen. Like they act like their actions have
no consequences.

Speaker 1 (34:49):
This guy was promising all kinds of free stuff. You know,
there's gonna be free buses, and rent control is really
gonna be controlled, and then we're gonna be shity run
grocery stores. Imagine how that would work? Be horrible? Imagine
how that work us put the city in charge of
the grocery stores. Are you kidding me?

Speaker 3 (35:03):
There's the reason that free things don't work. Public goods,
public restaurants, tragedy of the commons.

Speaker 2 (35:08):
Why would someone want to pay for a failing system?
They're going to move to another state or another country.

Speaker 3 (35:16):
It's just basically that they don't understand incentives. I think.

Speaker 1 (35:19):
Well, and then Schumer and Clinton both came out and
endorsed this this guy a couple of days after the ad.

Speaker 2 (35:26):
They're socialists and that's and that's the idea. They want
a world government. They want that central bank digital currency
that you can control, control your personal interest rate. They
want as much control as they possibly can get.

Speaker 1 (35:39):
Certainly, Trump gets the headlines for last week, but the
election in New York was close. We'll be back right
after this break with more of the Money Matter Show.

Speaker 2 (35:46):
Welcome back to The Money Matter Show. My name is
Todd Glick. I'm here with Sebastian Borsini and David Sherwood.
Last break, we were talking a little bit about retirement
accounts and one of the other things that hits me
a lot that most people don't know, especially the younger generations.
They're saying, I don't want to put money into a
retirement account, and I'm not going to see till fifty
nine and a half. I don't even know if I'm
gonna live that long, which is really funny for twenty

(36:08):
year olds to say. In thirty year olds right now,
it's like you're living in probably the longest longevity you'll
any human has ever lived in. But okay, besides the point.

Speaker 3 (36:16):
And to be so young and not better on humanity
and longevity is just ridiculous.

Speaker 2 (36:21):
But even if that's your fear, there's something called hardship withdrawals,
and these are a way to get money out of
an IRA or a wroth IRA without paying that ten
percent penalty which you otherwise would if you take money
out before fifty nine and a half. And what also
most people don't know is with the wroth, if I
put in ten thousand, that principle I can take out
that ten thousand without penalty. It's the growth on that

(36:44):
money that I can't take out three.

Speaker 1 (36:45):
Year, three years three. You have to be in it
for three years. So you put ten thousand in a roth.
Or let's see, you have put ten thousand in a
wroth and you run into a financial problem five years
down the road, you can get that money back without tax.

Speaker 2 (37:00):
There's many hardship with draws. Other hardship with draws are
also going to be first time home buyer. You can
take up to ten thousand. There's economic hardship with draws
which you can only have I think two a year,
but you can take up to around a couple thousand
for that. There's multiple ways to get out of divorce.

Speaker 3 (37:19):
But what Todd's talking about real quick, just going back,
you're talking about the five year wait. You know you
put your money in, you have to wait five years
actually to get that five it's five okay to get
that principle out. What Todd's talking about is hard hardship withdrawals.
So if you have the first time home by it
oversees this big difference five year window, right difference.

Speaker 1 (37:38):
Yeah, the we've we've got lower interest rates last week,
we got much lower oil prices. Economy surprisingly good. Do
we have world peath? I mean obviously we don't, but
I mean, did that did those bombs really make a difference?
Let's hope. So let's hope. So I don't trust the Iranians.

(37:58):
I think that's probably just part of being an American
or being a Jew.

Speaker 2 (38:03):
Yeah, really, just so you know the wroth, you can
always take contributions out penalty for you don't have to
wait five years. The five year rule applies to earnings
and you have to be fifty nine and a half
to take out earnings. You have to So they did
that because of the wroth conversion thing. But you can
always take out your contributions penalty for you. Really, like

(38:23):
if you if I put in ten, well you can't
put ten thousand a year, but if I put it
seven thousand in one year max out my country, I
can take out seven thousand the next year. That principle
that if it grows to ten thousand, that three thousand
night that I made, I can't take that out without penalty.
Point last I'm over five years and I'm over fifty nine.

Speaker 1 (38:41):
Point is if you have the ability to do a
wroth versus a traditional you should do the wroth. The
numbers work out so much better.

Speaker 2 (38:48):
But also if you're young and you think that you're
putting money away into something that you can't touch forever,
that's not necessarily true. Especially if you're you're like I
need to save up for my first time home buy,
but I don't necessarily want to be pitch and holding
myself and not have access to the money if I
put it in this account, that's not necessarily true. You
can still take out the principle.

Speaker 1 (39:06):
One thing we did is one minor casualty of the
of the uh war and Iran being wye need what's
the word I want? I want to pick the royal
word because I don't as you know, I don't trust them.
But how about slowing down or quite contemporary quiet period?
It's in a quiet period right now, but raytheon drop
five percent from the all time high after things settled down. See,

(39:29):
but it seems to me they're going to have a
tremendous amount of business replacing the thousands of things that
have been been shut off.

Speaker 2 (39:37):
Not to mention that the Golden Dome, well, the iron Dome, No,
it's the golden Golden here.

Speaker 1 (39:42):
Oh here, that's not gonna happen, according to Dave.

Speaker 2 (39:45):
Guys, it's not happening.

Speaker 1 (39:45):
We got no money, we can't afford it. Well, and
we already have.

Speaker 2 (39:49):
Are paying for all the other study, but we don't
have money.

Speaker 3 (39:53):
I was about to say, David, that doesn't make a difference.

Speaker 2 (39:55):
We don't have money now, and we're.

Speaker 1 (39:56):
Down to the point now where the debt to GDP
is getting onerous, it's getting onorous.

Speaker 2 (40:02):
Or at this point it seems like a number they
don't care.

Speaker 1 (40:05):
Yeah, let's hope they do, and we really don't need it.
We have ballistic missiles strategically placed out from South Dakota.
They were all over South Dakota because you know, if
they come over to the North Pole.

Speaker 2 (40:15):
I don't think the argument is if they're needed. It's
like it already seems like it's gonna happen. So if
it happens, that's a great thing for Atheon obviously.

Speaker 3 (40:25):
Yes, and I need defense contract.

Speaker 1 (40:26):
Yeah. Well, you know they did help Israel build the
Iron Dome. And you know, the interesting to the Iron
Dome is read about it. It's a three tier, three different
levels depending upon the what's being shot. And also I
didn't understand that it has the ability to read what's
incoming where it's projected to fall, and if it's going

(40:47):
to fall in a field somewhere, they just let it go.

Speaker 3 (40:49):
Let it go.

Speaker 1 (40:49):
Yeah, I didn't realize it was just if it's going
to hit a populated area, they blow it up.

Speaker 3 (40:54):
Yes, it's pretty efficient.

Speaker 1 (40:55):
It's pretty darn efficient. It's just amazing. Raything On in
the US government bought that for him, paid Raytheon to
build that for them, in a good job.

Speaker 2 (41:04):
Calling it the Golden Dome here in the US.

Speaker 1 (41:05):
Because the Trump's hair okay, okay, that wrapped there with
the phone, there's not going to be actually made in
the NICE.

Speaker 2 (41:11):
So we learned that this week. Trump's phone is definitely
not going to be made in the US.

Speaker 1 (41:15):
We said last week it can't be We said last
week it can't be it's impossible.

Speaker 3 (41:19):
Speaking of phones, do you guys remember BlackBerry?

Speaker 1 (41:22):
Yes, oh yeah, oh yeah.

Speaker 3 (41:23):
So that went out twelve percent this week and I
just thought it was super funny. I have to pull
it out from CNBC. This is their headline, BlackBerry the
cybersecurity stock pop twelve percent after the first quarter earnings
revenue cyber security stuck. I haven't read into this company
and what they've been doing since. You know, they've dropped
the little phone ages ago, but I didn't know that

(41:44):
they were cybersecurity stock.

Speaker 1 (41:46):
I didn't either. I didn't even know what they'd do.
But for those of you of a certain age, that
was the cell phone that was the that was an
encrypted secure and maybe that's why they came up with
the cybersecurity because the BlackBerry was so secure, but that
was the go to phone. If you had a BlackBerry,
you were all that.

Speaker 3 (42:04):
You know, I have a client that's always touting BlackBerry.
Way to go, Scott, good job.

Speaker 2 (42:08):
And you know why BlackBerry was replaced was because of
the touch screen. Okay, right, there was a new technology
that everyone was It was so much better than the
little pearl they had. I mean when they came out
with the Pearl. Everyone loved it. They're like, oh my gosh,
you're able to control the phones.

Speaker 1 (42:24):
Cool.

Speaker 2 (42:24):
But now it's touch screen with the iPhone, the first
iPhone and then ever since then, the iPhone took way
bigger control of that market share.

Speaker 1 (42:31):
I know they had a strength. There was a point
where they had a strangle hold on the cell phone market.
They were the cell phone.

Speaker 2 (42:37):
But it took a revolutionary technology to take it away
from them. Yeah, you know, And I think it's We've
seen that in other businesses with Netflix and and and
Blockbuster and Amazon and sears like that. That's what happens
when a better technology comes along, it can replace even
the strongest of businesses.

Speaker 3 (42:53):
And I don't think that Todd's calling death to Apple.
I think it's just, you know, they need to make
another product.

Speaker 1 (42:58):
No, I think we I think we all agree, uh
and most of the analysts agree they need to come
up with some theme. And I don't know that they're
going to so they need to buy somebody who will
come up with something.

Speaker 2 (43:07):
I'm really I mean, I think Google has a really
good setup here for just so many different lines. Not
only do they have YouTube, right, they have Google, but
they also have the quantum computing on the back end,
and they're one of the leaders. We've seen what IBM
stock has been doing. Because of some of that, they're
continuing to hit new all time highs. But it seems
like Google is just kind of getting left in the

(43:28):
dust because of all the drama they keep getting themselves in.

Speaker 1 (43:31):
Yeah. Again, I think they're involved with the federal government.
They're involved in several lawsuits. A judge just talking about
breaking up, breaking them apart. What's that going to mean?
And yeah, they've just got a lot of noise surrounding.

Speaker 2 (43:43):
And the video new all time highs. Did not see
that one coming.

Speaker 1 (43:47):
Out with me, neither just and it went todd It
went from one thirty five to one fifty five in
a heartbeat.

Speaker 2 (43:52):
I remember when you said it was I'm done, said
it had a new all time That's why I absolutely
believed it had hit an all time high and wouldn't
it was never going to get back there because I
didn't believe that the market could grow exponentially.

Speaker 1 (44:06):
But what happened this past week is they've gone off
into another business essentially, so.

Speaker 2 (44:12):
I'm not just a semiconductor business.

Speaker 1 (44:14):
Yeah, So if okay, it's not going to be a
one product company anymore.

Speaker 2 (44:18):
So robots, right.

Speaker 1 (44:19):
That's so, that's what I didn't see coming and probably
should have. But again, like I said, it was a
bold call that was wrong. But a lot of times
when you make bold calls, you're wrong. The PCE, which
is the Fed's favorite gage of inflation, was released on Friday,
up one tenth of one percent, which was in line
with expectations. I think it was what two point four
percent of over a year, which is similar to the CPI,

(44:41):
similar to the PPI showing that at this point inflation
despite the tariffs not really in. But you know, the
tariffs have not really kicked in yet for most of
our training partners, so we'll have to wait and see you.

Speaker 2 (44:56):
HOWE was on the car it was on Congressional Hill
this week. He was, yeah, And he was two different
days of given hearings. He does that twice a year
for whatever reason. It seems like a very pointless committee
just asking him questions. Seems like he just hates his
job when he's doing it. But what he says is
inflation is the real key, which I thought was very surprising.

(45:16):
I thought he was going to be talking about labor,
but he still thinks it's inflation. If he sees inflation
data come in and it's still low, he says he
can start thinking about cutting rates soon. So July inflation
is gonna be very interesting to see how that comes in.
But like you said, the tariffs haven't quite taken place.
So can he kick this ball a couple more months
of saying the data isn't in.

Speaker 1 (45:37):
Yet, right? And I think that's his plan and I don't.
I can't argue with him because we don't know, And
boy would that be embarrassing to drop rates and then
have to raise him.

Speaker 2 (45:46):
He did say that if we get it wrong, the
American person's gonna have a lot of pain and.

Speaker 1 (45:52):
They're gonna lose faith.

Speaker 2 (45:54):
But he's also already gotten it wrong with the inflation.
I mean, they said it was transmitory and they were
completely wrong.

Speaker 1 (46:01):
Well that was and Dean Dean picked that up the
very first time they said that. He said, that's not transitory,
it's wages. They're not going back, they're not going back down.
There's nothing transittory about this. Uh So Dean was desightful
enough to as a businessman and someone who employees, has
employed hundreds of people over the years to see that's no,
this is not transfittory. Been here, done that, and it's

(46:21):
it's not coming back down. We got the the jobs
report next Friday or next Thursday, I'm sorry, next Friday,
fourth of July.

Speaker 2 (46:29):
Yeah, short day, right, yeah.

Speaker 1 (46:31):
No, no Wednesday cursed on a Wednesday. Wednesday, the market closes.
The market closed.

Speaker 3 (46:37):
Early on the third, either ten or eleven.

Speaker 1 (46:39):
Oh it does. Yeah, okay, but half a day.

Speaker 3 (46:42):
The day before, the day before us a half day
and then obviously no work on Friday.

Speaker 1 (46:45):
Yeah. A lot of times it's it's not a half
day before holiday, but this time it is. Huh ah.
So we get three and a half day weekend. Look
at that, who are gonna be one hundred and ten
degrees and well, yeah, rainy, rainy and back because I'm honestly,
and we'll have started then, come on, let's go. Yeah,
first after the first of July, so the monsor will
have started. I getting to Albuquerque. But here, you know,

(47:09):
if it comes up from the south and it goes
to New Mexico first and then it moves over here.
So yeah, New Mexico June fifteenth, here, first of July
so settle down, people. Anyway, every day next week, chance
of rain. We'll hope that the forecast is right, and
we'll hope that the Lord blessed us with a ton
of water. We'll back right off this message with the

(47:29):
second half of the Money Matter Show, and welcome back.
This is the second half a second half hour, second
hour of the Money Matter Show, and we bring you
from Greenberg Financial Group. We thank you for joining us
on this beautiful Sunday morning, and it's supposed to be
hotter and blazes on Sunday and Monday and then start
to rain. I hope that that's I hope that's true.

(47:50):
Really really strong week in the market due to the
lack of a reaction to Trump's bombs, Trump dropping the
bombs on Iran, literally lack of a reaction, signaling to
me that the entire world says, finally somebody did something
about these lunatics. I hope, I hope that's right. The
dollar is up three point eight percent, s and P

(48:11):
five hundred three point four percent has deack up four
point two percent, so we're off and running right.

Speaker 3 (48:20):
Sebastian, you still got the rustle two thousand down for
the years down two and a half percent. That's been
starting to catch a little bit of a bid recently, though.

Speaker 1 (48:28):
It has a good sign. Yes, the S and P
five hundred up year to date. As of the let's
say June thirtieth, we got one trading day left. It
wouldn't expect much on Monday. With a four day week
or three and a half day week, you wouldn't expect
much action on Monday. So at the halfway through the year,
up five percent on the S and P five hundred.
The annual average rate to return on the S and

(48:48):
P five hundred action ten percent. So we're halfway through
the year, we're up five So talk about an average year,
very average year. What's not what's not average about it?

Speaker 3 (49:00):
Volatility?

Speaker 1 (49:00):
Is it plumbing to twenty percent in April? In April?
Uh and just freakd the dickens out of people that
didn't have the right financial plan and hadn't come to
see you guys, and hadn't been through the financial planning process.
So we had one of our left wing clients call
up and got ahold of one of our brokers and said,

(49:23):
I want to sell my S and P five hundred,
to which I would have said no, no, you don't.
You want to buy insurance two times to the downside
against that. So then when when the insurance started to
get eaten up, he would say, you know what, sell
that insurance. I'm good. So but where he's at, he's
been out of the S and P five hundred pretty

(49:43):
much since the bottom in April, So it's unfortunate that
that that that happened. I would have liked to have
seen him do it a little bit different way, but
he didn't.

Speaker 2 (49:54):
So some people also a couple of days ago, before
this Thursday Friday, right the S and P was only
up about one and a half percent for the year.

Speaker 1 (50:03):
I think.

Speaker 2 (50:04):
So if you think about that, if with current money
markets being around four percent, you should be up about
two percent for the year. H So I heard a
couple you know people call and say, why is my
account doing less? Like doing worse than my savings account?
Shouldn't have done better? And again the market dropped a lot,
and it has come back a lot, but it's come

(50:26):
back to just pretty much where it is, and now
it has had a good week this week. So now
we're up about five percent for the year. But it
was doing just as well as a bond ladder was doing.

Speaker 1 (50:36):
Well, and that's completely irrelevant.

Speaker 3 (50:39):
And that's also that's also if you were sitting on
your hands as a money manager about a month and
a half ago, you know, we were buying at those
levels when the market was down twenty percent, we were buying.

Speaker 1 (50:48):
Right. The bank will give you four percent on your
CD because they take the money and put in the
market and make ten Yeah, pretty sivil, right, So it
paved the bills or put in real estate, or put
it in investment vehicles other than you need if you
need absolute safety, safety comes with a price. We know
that one of the greatest wealth accumulation vehicles in history

(51:10):
is the stock market. But the price of admission is volatility.

Speaker 2 (51:14):
The best way to do it is historical averages, and
especially when you're going into a new fund, if you
don't know what a fund has been doing, look at
their perspectives, look at the one year, five year, the
ten year, and the lifetime performance. And if it's not
ten percent, then you'd be better off just going in
the s and P five hundred, you know what I mean.
Other than that, if you want some risk mitigation, that's
where we get involved, right. But if you're just looking

(51:36):
at a pure equity portfolio, just in the S and
P five hundred. If it's not, if you're going into
another fund, it better be a better risk returned than
the S and P.

Speaker 1 (51:44):
I had account that I opened about a year ago,
and the idea was he was going to put in
X amount of dollars per month from his business because
his business was doing very well, and he had not
put in a penny. And so I called him last
week and I said, why have you not put in
a penny? He goes, well, I really haven't seen the
performance to justify it. I said, you don't understand you

(52:05):
dollar cost. You keep putting money in, the performance will come, right,
you know. And when when the performance is not there,
that's when you're putting money in. And if it's going down,
you put more money money and because the performance will
come and you're going to be sitting on your hands going, oh,
I wish I would have put that money in, and.

Speaker 2 (52:24):
He's yeah, hindsight, it's twenty twenty. You be when you
see that the market return twenty percent for the year,
you can't go back on January first and invest.

Speaker 1 (52:30):
It ten percent in the last sixty days.

Speaker 2 (52:32):
But then you can't expect after it's already returned twenty percent,
then it's going to do another twenty percent.

Speaker 3 (52:37):
Yeah, I mean the todd and I have a prospect
that I maybe two weeks into my time here at
Greenberg Financial, he has thought about opening account with us
for you know, over two years. Now, market's too high,
market's too high, market's too high. Well here's another all
time high.

Speaker 1 (52:55):
Yeah. No, And you had a couple of opportunities along
the way, and when those opportunities came about, you were
high eat under the bed, you know. The our market,
the s TOB five hundred last week up three point
four percent, Chryinga have three point six percent, Europe up
three point three percent. So it was a global rally

(53:16):
after the bombs were dropped, which again would adds more
credence to the belief that maybe the whole world did
on Iran not have a nuclear weapon.

Speaker 2 (53:23):
You know, we talk a lot about risk on the show,
the risk tolerance, but something that also people think don't
think about with the risk return. Obviously, as more risk
you take, you expect a higher return, but there's a
couple of other variables that can affect your return as well.
Like liquidity. E liquid products can normally offer you things

(53:44):
that liquid products could never and we're talking things about
like insurance products, annuities, even sometimes other liquid investments. Think
about if I invest in Uber fifteen years ago, that's
an e liquid investment. They weren't public, right, so that's
I'm just basically lighting money on fire. But if they
do go public, I'm going to make a huge return.
But it's an e liquid investment. There's no marketability for

(54:06):
the shares I might be able to actually, you know,
there's probably not a market for it. And there's a
lot of those e liquid investments out there there. We
know about alternative investments that are you know, can only
be sold every now and then annuities which have surrender
schedules that have E liquid nature. But all these products
can offer you a little bit more than what a
liquid product can do, and that makes sense. On top

(54:27):
of that, another variable is leverage. If you use more leverage,
you expect higher risk, which packs your return correct. Right,
So if you use something like short selling or options
or margin, that will impact your returns as well. So
most of the time what we're talking about on this
show is just vanilla stuff. The s and p. Five

(54:48):
hundred and how we talk about accepting more risk is
normally just saying adding more equities to your portfolio, adding
more stocks.

Speaker 1 (54:55):
How we tell people the more equity exposed you have,
the better you'll do over time. But not everyone can
tolerate that level of volatility one hundred percent equally, not everyone.
So we need to find the level where you are comfortable.
We want to have as much equity as we can
possibly have for you and still have you be comfortable, right,

(55:17):
And then that's what this whole process is about.

Speaker 2 (55:19):
That's what the planning process is. I mean, we're putting
in all those variables and then trying to find what's
the best vehicle that maps you on that grid almost
per se because.

Speaker 1 (55:29):
Then you guys are such a spectacular job. And I've
said almost every single week, the level of sophistication with
the plan you do is so far beyond what you
would expect coming in for the first time. It's so
far beyond, and your level of knowledge of different things
that can be done beyond what most people even know exist.

(55:52):
So if you have not come in for the free
financial plan, please do so. It's summer, it's quieter We're
still doing financial plans every day, but instead of three
or four, maybe we're doing one or two. So if
you if you have not done taken advantage of the
free financial plan, please do that. This is a great
time to do it. Oil was down ten bucks on

(56:13):
the week and sixty five goal dropped another one hundred
bucks down to thirty two sixty nine. It jumped up
pretty good when the bombs fell.

Speaker 2 (56:21):
But the dollar keeps falling as well. The dollars down
ten percent for the year, and most people be like,
that's that's really bad. It's pretty good for US three
or low.

Speaker 1 (56:31):
Yeah, every president in history will tell you they want
a strong dollar. Not a single one does. Because a
week dollar is good for business. It really helps our
multinational companies do better. So don't if you see the
CNN going bananas about the dollar drop and that's a
good thing.

Speaker 2 (56:49):
Yeah, and it's not necessari Yes, you're you're losing value
in relation to other currencies.

Speaker 1 (56:55):
Correct, You're not.

Speaker 2 (56:57):
The dollar itself isn't every currency's evaluing. It's just at
the rate. It's the value devaluing against itself each other
at the time. Currencies are all just all fake. Let's
be real and.

Speaker 1 (57:08):
And the currency, the US dollar tends to move with
interest rates, and so what that signaling is rates have
been coming down. The ten year was at five percent
a couple of months ago, finished at four four twenty
eight last on Friday. So it's coming down and the
dollar should come down, That's what happens. And interestingly, when

(57:31):
the dollar comes down, gold should go up. And so
gold continues to be in this own little world. That
relationship between gold and the dollar has been broken for
months and continues to be broken.

Speaker 3 (57:42):
Copper's killing it, I mean, that's in crazy highest.

Speaker 1 (57:45):
Yeah, So we can get some of some more of
that copper or concentrate and take it to Wymous so
the Chinese ships can pick it up and take it
over there and smelt it, because we don't want those nasty,
dirty smelters in the United States. We've got two two nasty.

Speaker 3 (58:00):
Dirty smelters, one in Miami, Arizona.

Speaker 1 (58:03):
We got twenty one's in Utah, somewhere in Utah banks.
The banking ETF was up twenty five percent this year,
again on the belief that life's going to be better
under Trump. And sure enough, the Federal Reserve on Wednesday
for post changes that would lower capital requirements for banks
that was implemented after the two thousand and eight financial crisis.

(58:23):
Tweaks to these rules known as enhanced get this enhanced
supplementary leverage ratio. Remember that that's going to allow the
nation's most important banks to lend more freely and make
it easier for them to buy more US government bonds.

Speaker 2 (58:38):
So I found it very interesting that it was a
split decision, though it wasn't everyone on board with that.

Speaker 1 (58:44):
But I get that. I get that we learned in
two thousand and eight if you take your eye off
the banks, they can misbehave.

Speaker 2 (58:51):
And well, yeah, yeah, I mean Basel three is coming
up too, and that's trying to get to the finish line.
That's going to be another big banking acts going to
kind of revolutionize how things are done.

Speaker 1 (59:03):
You guys, I was looking at the reading through some
things over the week. You guys familiar with mini bars
in hotels. You probably unfainting a lot of hotels in
your lives, But the mini bar used to be a
really really big deal and you'd go in the room.
First thing, you look at the man, what's in the
mini bar? Right? And the mini bar would would typically
be in a cabinet somewhere and you'd open it up

(59:24):
and there'd be some beer and some wine, and some
so it is, and a bunch of different kinds of
candies and stuff. And it was introduced to nineteen seventy
four by Hilton, and it just took off. It became
just a huge hit. At one point it accounted for
five percent of Hilton's total corporate income. Mini bar Wow,
five percent of Hilton's total corporate income. However, as the

(59:50):
years have gone by, in the country's moral fiber has changed,
convenience has faded from the scene. You don't see them anymore.
You seldom see them in a hotel room. I'm finding
I bet, I'm trying to think the last time I
saw a mini barn in a hotel outside of Vegas.
So you say, well, what why since they were such

(01:00:11):
a big money maker. Well, it turns out that, of course,
it's a logistical nightmare for the hotel and your staff.
That's obvious, right, But that's part of what you do.
That's what you get paid for restocking. Okay, that's what
you get paid for food spoilage. Okay, yeah, I could
see a little bit but it's mostly candy wine liquor. Well,
you know what's going to spoil their theft theft, I know,

(01:00:33):
rampant theft, rampant theft.

Speaker 3 (01:00:35):
Well, I mean and saw weights distributed. Now you can
take a water off of there and then put another water,
you know, fill the same water bottle up with your
toilet water, whatever you want to put in there, and
it's fine. I'm not getting charge.

Speaker 1 (01:00:46):
Drink, drink the lot, fill it up. No. Is that
amazing that that that it just became. We became in
nineteen seventy four. We weren't those people today we are.

Speaker 2 (01:00:58):
Well, you know it also happened in nineteen before that,
But nineteen seventy one.

Speaker 1 (01:01:03):
Oh you know, you weren't here.

Speaker 2 (01:01:04):
We got off the dollar.

Speaker 1 (01:01:05):
Oh yeah, I mean yeah, good job.

Speaker 2 (01:01:10):
Every ever since the gold everything got bad.

Speaker 1 (01:01:13):
Tricky dick, tricky dick. You know. The McDonald's. The Dow
component was unchanged on the year, but opened lower on
Wednesday after they became the latest target of a grassroots
economic blackout campaign that had previously targeted their major corporation, CUB,
somewhat unsuccessfully. The Peoples Get This, the People's Union USA.

(01:01:34):
This is led by a fifty seven year old meditation
teacher in Chicago. Meditation teacher John Schwartz, he's now calling
on people to boycott McDonald's last Tuesday until next till
tomorrow Next Monday got a boycott McDonald's, explaining in an
Instagram post that he is demanding ready fair taxes and

(01:01:58):
into price gouging McDonald's real equality whatever that means, and
corporate accountability for what are you serious? As if he
needed a reason to go to McDonald's, this may be it. Yes,
I mean, are you are you kidding me? Fair taxes

(01:02:20):
and end of price gouging in McDonald's real equality. Okay,
thankfully the stock end of the week higher.

Speaker 2 (01:02:28):
I'm bullish on McDonald's because they came out with a mcflurry.
That's morse addition, like a limited editions.

Speaker 1 (01:02:34):
That sounds good.

Speaker 2 (01:02:35):
It was really good.

Speaker 1 (01:02:36):
That sounds good. If I was just tall and skinny
of you, I'd go have a couple.

Speaker 2 (01:02:39):
You just have one?

Speaker 1 (01:02:40):
Yeah, Well I'd have to have two. That's who I am.
That's who I am. We got a little little crypto
news two Republican senators finding the debut of framework for
a major building would set the rules of the road
for digital assets time.

Speaker 2 (01:02:55):
Love, Senator Loomis, it works hard.

Speaker 1 (01:02:58):
It's going to define crypto as whether it's a commodity
or security. And you and I've talked about this a lot.
It's going to allow crypto exchanges to register with commodity
futures and reduce the SEC's involvement.

Speaker 2 (01:03:10):
Yeah, I'm not. I don't like crypto, so I hope
they classify mes securities.

Speaker 1 (01:03:16):
Okay, so you like bitcoin, but you don't like crypto, correct,
explain the different.

Speaker 2 (01:03:21):
Crypto is run by teams people, and bitcoin has already
been classified as property by the irs, property by itself.
It's just like anything. It's it's really like a commodity.
But when you have these other teams that are basically
just corporations. If I make a coin that me and
Sebastian run, it's no different than me in Sebastian creating

(01:03:44):
a fund, right right, And so why should the fund
have to go through the process of creating a perspective
to tell the investors what they're actually investing in so
that don't lose money. If me and Sebastian just create
a crypto coin and then I make a whole bunch
of money on it and then pull all the money
out off of them, and a whole bunch of people
lose money because I didn't tell them what they're actually
invested in. That seems like the government not doing their

(01:04:06):
job of making sure that if you're going to have
these perspectives, this seems like a perfect place to have
them for crypto. And it's specifically these ethereums run by
a group of people. I mean, it's not that it's
not decent. There's no actual like that's the difference with bitcoin.

Speaker 3 (01:04:21):
There's no one, a regulating body over it.

Speaker 2 (01:04:24):
And so that that's to me. I think they all
should be classified securities, but it would help the landscape
if the classified as commodities because of just regulation.

Speaker 3 (01:04:33):
So yeah, and there does need to be some form
of regulation there just because again it's kind of why
crypto gets such a bad rap. You have you hear
so many of these pump and dump schemes. You know
that people get there the rug pulled out from underneath them.

Speaker 2 (01:04:45):
There's a lot of scams in this industry in it
and that that's the problem. You know, you have to
get the bad stuff out to focus on the good.
And I think this potentially is going to highlight the bad.

Speaker 1 (01:04:56):
Don't you think that the industry would like to see
more regulation. They like to know where the lines are.
I mean, it's kind of like playing in a soccer
field with no line.

Speaker 2 (01:05:05):
Well, I don't know, they've I mean a lot of
these people are kind of those anarcho capitalists, libertarian type
of mindset. Good point, and they're not. They're loving the
government to begin with, right, They're coming from that standpoint
of we want to be away, we want to be
free type of things.

Speaker 1 (01:05:20):
So yeah, so maybe not. Huh yeah. Keeps hearing little
snippets about the big beautiful bill. You know, we said
last week they're never going to make their July fourth deadline.
They figured out o a way to do it. Did
you see that you can't go home, You can't go home,
tells she's done. Yeah, So no fourth or July holiday
for you, no fireworks for you.

Speaker 2 (01:05:41):
Why weren't they able to do that in past years?

Speaker 1 (01:05:44):
They have They have, They have done that before with
other holidays and things. But uh, yeah, that's what they've
decided now. The majority leader in the Senate said, nobody's
going home until this is done. So you want to
get a really crappy piece of legs, do it this way.

Speaker 2 (01:06:01):
But then also once it goes through the Senate, it's
going to go back to the House.

Speaker 1 (01:06:05):
Well, they're working in reconciliation right now. So this is
as I understand it, and I'm certainly no legislative genius,
but as I understand that the House and Senate conferees
are working together to find something that's going to be
palatable to both sides.

Speaker 2 (01:06:19):
That's the problem with I mean, I don't feel like
ninety of the population understands how our political system actually works,
like to get a like you know, how they had
the school rock of how to get a bill cross
Capitol Hill and it was really fun and easy to
understand what I have.

Speaker 1 (01:06:33):
That was fun.

Speaker 2 (01:06:34):
Yeah, I don't think it's like now a little bit
that I think.

Speaker 1 (01:06:39):
So it's not like that at all anymore.

Speaker 3 (01:06:41):
A couple of the couple of beneficiar.

Speaker 1 (01:06:44):
Just one little thing that that big beautiful bill with
that I saw that was kind of interesting. Medicare and
Obamacare recipients must work eighty hours a month to qualify
in that bill eighty hours a month or do twenty
hours or community serving me in twenty hours a week,
which I think is a great thing. It's kind of
the same when you get paid for your an able

(01:07:05):
body person.

Speaker 2 (01:07:06):
Yeah, and that's the other that.

Speaker 1 (01:07:08):
Was the first thing that came to mind with Jimi Christmas.
What if you're a quadrantlate, it's not very it's gonna
be impossible.

Speaker 2 (01:07:15):
Right, And he even says if you're under I think
sixteen or over seventy five, it doesn't apply to you.
And you have to be an able body person in
between that. We're trying to get rid of the free
kicking off the people that can't work, you know. And
that's what all the commercials are going to say, they're
cutting medicaid. This girl's not, obviously, she's going to keep
getting it, all right. It's the people that are taking

(01:07:36):
advantage of the system.

Speaker 1 (01:07:38):
One of one of these, one of these vagrants or hope,
what's what do you want to call them, just wandering
around town that I'm familiar with, has an ATM card.
I've actually seen her at the ATM machine and get
any money. So I don't know who puts money in
the account. Could be a government.

Speaker 2 (01:07:55):
How do you have an address on your account?

Speaker 1 (01:07:58):
That's a good, good point. You need an address here
and there.

Speaker 2 (01:08:04):
Street.

Speaker 1 (01:08:05):
I don't know. It's interesting, you know, it really is interesting.
And I know that the city council fastest ordinance where
you can't be on the median uh anymore. Now they
passed ordans, they're fine, and they failed to pass the
ordinance you could not camp in the wash. Did you
see where they've now done that? Now came back then? Now, no,
we're camping in the wash good. Uh. Yeah, it's it's

(01:08:25):
kind of bizarre. The whole thing is bizarre.

Speaker 3 (01:08:29):
People don't Sometimes when I'm on the riverwalk, I see,
you know, people taking their dogs down there and throwing
their balls, and I just think about, like, I don't know,
what if my dogs stepped on a needle or something,
because there's a bunch of tents out here.

Speaker 1 (01:08:39):
That's when I was on the river path by Brandy
Fenn Park the other day and here's just this big
bubble in the wash down. What in Heaven's name is out.

Speaker 3 (01:08:45):
Look, it's a neighborhood. It's a neighborhood.

Speaker 1 (01:08:48):
Neighborhood in the neighborhood. So anyway, they're not supposed to
be on the medians and uh uh, one lady, that's
that's by where I live, is out there all the time.
The elderly lady, I said, I said, do you understand
there's a two hundred and fifty dollars fine now for
your contry? Goes Oh, I'm seventy one. I have no
other choice.

Speaker 3 (01:09:06):
You know you're sive.

Speaker 1 (01:09:08):
I said, I'm older than you are and I still
work full time. What are you doing? You know that
there are other options out there. I feel bad for
people that are mentally uh challenged. That's tough. I mean
that's real, real tough. But there's an awful lot of people
out there that just simply refuse to give up drugs.
Nike Nikes good? You do you want to talk about Nike?

(01:09:29):
You you pointed it out to me on Friday.

Speaker 2 (01:09:31):
Yeah.

Speaker 3 (01:09:31):
I was just gonna say it was a nice comeback,
and you had a great points on the fact that
you know, it seems like everybody's trying to find the
stocks that have lagged on Friday.

Speaker 1 (01:09:40):
Yeah, we've got a bunch of foe all going on.
If you're missing out, and by I gotta get in,
I will kind of get in on the videos at an
all time high and uh and uh meta is an
all time high and microns are on forty What do
you got? How about how about Apple? How about Nike?
How about United Healthcare? These are all in the toilet.
Maybe that's what we ought to be doing. So I
think that's what happens as you get to the later

(01:10:02):
stages of one of these moves. And I'm not suggesting
the market rallies over because I think with Trump and
the UH, lower interest rates, declining regulations, going over the
next three and a half years should be pretty good.
We thought that when he got elected. I still think
that we've had a heck of a run here, but

(01:10:23):
we're not. We're only up five percent from when he
became president. That's happened exactly doubled, you know, so we
got I think we probably have a long way to go.
I'm pretty optimistic. I don't have the trumptomism that some have,
but I believe that the optimism is, in all fairness,
a lot of it is is on mister Trump. He's
he's causing it as being a guy that we finally

(01:10:47):
have a president. One of the biggest problems we've had
as a country is we won't let our military do
what our military can do because we're afraid of hurting
somebody's feelings, and I don't see that with Trump, so
that that's good thing. I don't see him being the
least bit concerned about being isolated from the rest of
the world because we were bad actors. You know. I

(01:11:10):
see him really sincerely wanting to make this country better.
And you may not agree with the policies that he
is implementing or trying to implement. I don't agree with
all of them. Because he's he's moving fast and hitting hard.

Speaker 3 (01:11:28):
Did you see him drop the f bum the other day.

Speaker 1 (01:11:30):
Yeah, that was pretty funny.

Speaker 3 (01:11:31):
That was awesome, And I think that's one of the
things I like about him so much, because he's you know,
you humanize him and see.

Speaker 1 (01:11:38):
He get frustrated. We all get frustrated, and and that
slips out from time to time. We all get frustrated.
There was a passion there, there was real passion in it. And
then I saw a ficture of him on Facebook with
the squear jar in front of him and putting a
quarter in. You know, we'll be back with more than
Money Matter Show after this message. Thanks again for joining us.

Speaker 3 (01:11:55):
Welcome back to the Money Matter Show. My name is
Sebastian Bors seeing him here with Todd Glick Junior and
David Dave Sherwood or.

Speaker 1 (01:12:01):
David either one.

Speaker 3 (01:12:02):
Yeah, you know, I like Dave.

Speaker 1 (01:12:04):
I think I'd be called worse. Dave is what I
like to go by because I'm kind of an informal
sort of guy.

Speaker 3 (01:12:09):
You know, one of the biggest s beneficiaries or two
of the biggest s beneficiaries off of this oil dropping
was airlines and cruise liners. You had a Carnival they
jumped in nearly seven percent after they released their earnings,
and then you had a whole bunch of airline stocks
going up over five percent. You had Frontier Group, Alaska Airlines,
American Airlines, and United Airlines all going up over five

(01:12:29):
percent this week.

Speaker 1 (01:12:30):
This is where you have to be really careful and
you're investing not to react to the headlines. Yeah, right,
because when the bombs dropped, what went into toilet? Right,
cruise line, cruise lines, the travel companies, the hotels, they
all went the toilet and within four days they're back
to where they were.

Speaker 3 (01:12:47):
So you actually, yeah, you.

Speaker 1 (01:12:50):
Really have to Yeah, you really have to take a
deep breath when you see something like that and say
maybe I'll set this out, you know, maybe I'll set
this out.

Speaker 3 (01:12:58):
Did you guys see that new Netflix special on Carnival
about the poop Cruise?

Speaker 1 (01:13:02):
No, what is it about?

Speaker 3 (01:13:03):
Go check it out. There's some boats that Carnival had
and they they were left out at sea for like
ten days because they had some malfunctions, their power outages
and whatnot, and all the toilets ended up overflowing. Because
if you think about it, you know, tens of thousands
of people on this boats the toilets don't work. What
do you do?

Speaker 1 (01:13:22):
Sure it's a.

Speaker 3 (01:13:23):
Documentary about that.

Speaker 1 (01:13:25):
It sounds like sounds like.

Speaker 3 (01:13:28):
I'm not taking I wouldn't take a Carnival cruise.

Speaker 1 (01:13:35):
No. Nordis one of your old favorites. Have you given
up on it?

Speaker 3 (01:13:38):
What do you mean? Have I given up on it?
It's done really well.

Speaker 1 (01:13:45):
Has been a big fan of Nobel Nordi, who's a
competitor of Lily, and it was down fifteen percent this year,
fifty percent off of his high dropped another five percent
at the opening on Monday, after the latest result for
the company's next generation obesity drug disappointing and showed no
clear advantage over Lily. This is the this is the
interesting part. Then the company also announced that ended this

(01:14:07):
collaboration with Hims and Hers, and that sent Hymns and
Hers down thirty percent. Talk about a Vosso stock that
you want to stock to to play with us, my good.

Speaker 3 (01:14:19):
One and yeah, I know you want to talk crap
to me or whatever you want to say about.

Speaker 1 (01:14:24):
No, no, I see, and I understood when.

Speaker 3 (01:14:26):
You think that that's one of the things I want
to talk about, Like, you know, yeah, if you hear
back on the show, I've been talking about the stock
for maybe a year and a half. I bought it
at one hundred once one forty.

Speaker 1 (01:14:35):
You know.

Speaker 3 (01:14:36):
Yeah, now at this point it's in the toilets, but
you get back into it. You know, it's a good company.
You look for things that have gone being up and
this is one of them.

Speaker 1 (01:14:45):
Things I just took away from this article about about
Lily and about him and Hers and about Noble nordisk Is.
A recent study showed that thirty percent of the weight
loss from these drugs is muscle. Thirty percent. That's pretty significant.
I think if you I think, as as time goes

(01:15:06):
on and you get to be an older person, if
you've given up thirty percent of your muscle to look better.

Speaker 3 (01:15:12):
It's going to be concerning for.

Speaker 1 (01:15:13):
That, I might be concerning. I don't know. Maybe maybe
that offsets the additional trouble you get from the weight.
I don't know, but it's it'd be aware that if
you are on Ozempi or Lily number one, it's a
lifetime commitment number two thirty percent of what you're losing
his muscle.

Speaker 3 (01:15:29):
Yeah, it'll be interesting years down the.

Speaker 1 (01:15:31):
Road, Todd, how about housing? Not good? KB Holmes already
down twenty percent this year, lower on Tuesday after the
builder lowered is full year guidance, saying the market has softened.
We've been talking about this for a long time now,
about the market softening. And my real estate friend here
and here in Trussa, one of the top real estate

(01:15:51):
agents in town, told me two weeks ago and I
said on the show that the market here is like
blood in the streets. He said, you're just absolutely nothing
going on. It's really really bad. And then we found
out later in the week the sales of new single
family homes plunged thirteen point seven month over month to
a seasonally adjusted low. That sequential drop marks the sharpest

(01:16:14):
decline since June of twenty two. Oh, that's not that
long ago. See how three years ago was this bad
or worse? And we recovered from that? Right?

Speaker 2 (01:16:23):
Yeah, and again I had another conversation with my mom,
who's definitely in the game there, and she's definitely says
it's all land and infrastructure. That's what's going to be
the next three to five years, the thing that we need.
Tucson lacks infrastructure incredibly right now. It can't even handle
the amount of people it has now. And there's more

(01:16:45):
homes getting built, not necessarily in Tucson, but the greater
area of Tucson, No, I hear it. So when you
think about Sarreta Vail Morana, those roads are not I
mean there's the roads, but they're not designed for a
lot of people, and there's becoming a lot of people
there and the infrastructure can't even handle it now, let
alone have a whole bunch more communities, more businesses. You

(01:17:08):
might get a couple of data centers on top of that.
That's why Senator Mike Lee out of Utah is try
to throw into that big beautiful bill that they want
to sell quite a bit of land across the nation,
and there's been quite a bit of a fifty to
fifty if not more pushback on that side of things.
Many people are saying that they shouldn't do that. As

(01:17:30):
far as we're were, it was like twenty miles around
population center, so it seems like they've gone it down
to around five miles around the center. I have a
guy on Instagram that I follow that has been pretty
out here.

Speaker 1 (01:17:42):
I was here to people on left sales. They're going
to sell Canyon now, They're not going to sell to that.

Speaker 3 (01:17:48):
But I put houses right there.

Speaker 1 (01:17:49):
Oh lord, And.

Speaker 2 (01:17:51):
You know, I talked to my mom about that. She's like,
I don't know how much that would help because most
of that land is not necessarily great for homes. It
might be great for like data center or business to
come into, but not necessarily great for homes. But that's
that's really the key. I mean, we have to get
some of this land available, I think to have Tucson
really keep its growth rate.

Speaker 1 (01:18:13):
I think that's important. I think right now, though it
seems to be just a lack of demand, we're just
there's anybody wanting to buy homes right now because there's a.

Speaker 2 (01:18:20):
Couple at these prices well, there's always that.

Speaker 1 (01:18:23):
You've got two other two things that work here, you've
got all of the economic uncertainty. Regardless of what you
think about Trump. There is certainly a high level of
volatility right now which has created uncertainty. My wife is
a does interior design, and she's feeling that she's hearing
it from clients that they want to wait until things
settle down in the economy settled down internationally, so that's

(01:18:46):
a factor, and then mortgage rates continue to be up
round seven until we get some relief in that area.
I don't know what's going to cause relief and give
us relief in that area.

Speaker 2 (01:18:55):
Todd again, I think you're just going to have continued
home prices until you find a place where a lot
of people jump into the market because it's where they
want it.

Speaker 1 (01:19:03):
You buy a home because you think it's going to
be more valuable in a year. That's the only reason
to buy it. If it's not gonna be more valuable
in a year, there's no reason to buy the house, right.
I guess control your own space. Maybe.

Speaker 2 (01:19:15):
I think a lot of people are getting to the
point where they don't want to keep paying rent, so
they're okay with paying a mortgage, even even if the
house does go down in a year, because you know,
in five ten years it's going to be worth something,
Whereas if you keep paying rent for five ten years,
you're not going to end up with anything.

Speaker 1 (01:19:30):
And we know one thing that's happened over time with
houses and with real estate and with collectibles and paintings
and all of those things is they always go higher
over time, always go higher over time. So if you
bought a home and it's gone down, I saw that
with my next door neighbors. They had a home that
they bought right at the top of the market back

(01:19:53):
in two thousand and seven, and it just fell apart
on them and they just finally sold it. It took
them from two thousand and seven until this year right
to get the price back, but they sold the first
twenty percent profit. But you know, I've took some time.
In the meantime, they were able to live there and
enjoy it. Right happens right.

Speaker 3 (01:20:14):
You know.

Speaker 2 (01:20:14):
Another part of that space is it b it's a
home construction ETF and that's gotten absolutely hammered quite a bit.
But I think it might be an interesting place to
start to take a stab at it's come down from
its highs of around one thirty. It's around ninety three now.
Probably a more diversified way, a less risky way than
just going into a single home builder or home ETF.

(01:20:38):
You know, who knows if home depot's going to be
the better place to be or a home builder. But
that's why that home construction ETF can be a better
way to just play the whole space if you think
it will come back over the next couple of years.

Speaker 1 (01:20:50):
One of those things I've watched with curiosity over the
years is Krispy Kreme. Krispy came public back in two
thousand and Man, it was all the rage, but five
years later they filed for bankruptcy. Interesting story about that.
Krispy Kreme stock was nearest high and I walked into
Walgreens one day to get something and here was the
display of Krispy Kreme donuts. Well there goes the scarcity, right,

(01:21:14):
because that was one of the things that made them special.
I went back to the office the next morning and said,
sell all to Christy Creme, and thankfully we did. Five
years later, when bankrupt they struggled along for eleven years
trying to reorganize the company operating in bankruptcy, which you
can do if you are doing in a restructuring and
in twenty sixteen it was purchased by private equity. Private

(01:21:36):
equity cleaned it up as best they could, and in
twenty twenty one it came public for a second time.
Here we are four years later with news the company's
no longer going to sell their donuts at McDonald's, and
Krispy Kremes did a new all time low. No talk
about christpy Kreme having declared bankruptcy back in two thousand
and five. In twenty sixteen, taking public, and then it's

(01:21:58):
going to be taking private. I bought by equity out
of bankruptcy. Twenty twenty one, they come public again. Now
they're down to two bucks. Threat need to go bankrupt again. No,
they make They make a great don't it. I'll give
them that.

Speaker 3 (01:22:11):
Too many people on Olympic Now I'm pressing that appetite.

Speaker 1 (01:22:15):
There you go. I guess, although I don't know. I've
got mixed feelings about that. I would say, well, people
aren't I don't know Ozmpic are going to eat healthy?
And I'm thinking no, they're not, because they're they're gonna
eat healthy. They wouldn't need Olympic.

Speaker 3 (01:22:28):
Right, but they're gonna eat less because of the appetite
supressing associated with well, you would.

Speaker 2 (01:22:32):
I don't know how A company I think is just
widely too cheap probably is Target right now, the Target
Corporate Corporation trading at like a trailing pe of ten
point six. Yeah, I mean yeah, we talked about it
this week. How a company with no growth you can
put them at an eight pe eight.

Speaker 1 (01:22:48):
Yeah, that's kind of the that's kind of the accepted
price earning poor company with no ten eight times journeys.

Speaker 2 (01:22:55):
So Targets used to trade at around two hundred and
sixty dollars, a shared all time high in twenty two
only one, it's not ninety nine dollars. There's obviously a
lot that's happened through those years. They had the pushback
against their liberal merchandise that they had for a while
and all that. But I don't think Target's going out
of business.

Speaker 3 (01:23:14):
I don't think they're going out of business.

Speaker 2 (01:23:15):
So this is an interesting stock that I've been watching
for a while. It seems like over the last couple
of weeks it's found somewhat of a level I don't
know if it's a bottom, but they definitely found the
level here at around the ninety nine dollars level.

Speaker 1 (01:23:28):
Or you know what comes after the fourth of July
the Amazon Prime yep, you know. It used to be
Amazon Prime Day too, and then it became two days,
it's a week. Now it's four days day. Do you guys,
you guys watch the Amazon Prime sales? Do you do
you pay any attention to it?

Speaker 3 (01:23:46):
I'll browse it.

Speaker 1 (01:23:47):
I mean, do you actually look at the prices and
wonder if there's something I like at the right price?
So you actually do use it?

Speaker 3 (01:23:53):
I try. I try not to because unless I actually
needed something, you know what I mean, I'm not just
gonna buy something because it's cheaper.

Speaker 1 (01:23:59):
How about your time? Yeah, you pay attention to it
at all?

Speaker 2 (01:24:02):
No, I mean, I'm I'm I I might. I would
have to be pretty bored during those couple of days.

Speaker 1 (01:24:08):
Yeah, I honestly never even look at it, and I
probably should. I'm not a really great shopper, have never
been a really great shopper. Don't clip coupons, don't know
when to stop? You know, feel like you have to
be that type of person. Right, We'll be back right
after this break.

Speaker 2 (01:24:20):
Welcome back to the Money Matter Show. My name is
tog Lick. I'm here with Sebastian Borsini and Dave Surewood.
This week, the market has gotten back into positive territory
for the year, and it's quite a bit. It's five
percent higher for the year and hit a new all
time high on the S and P and the Nasdaq,
new all time high on the S and P. So
the question is is it I mean, it just hits

(01:24:40):
new all time high as always, right, Dave.

Speaker 1 (01:24:42):
It always, there's always. What we always say is is
the one consistency with the market is that every single
decline in market history has been followed by a new
all time high one hundred percent. And we had a
big decline in April. What was it followed by, Sebastian,
all time I knew, all time high every time one
hundred percent. So when in the market drops, why are

(01:25:04):
you freaking out? Why are you getting scared? Why are
selling stuff?

Speaker 3 (01:25:07):
It's on sale? Come on, let's go, let's go use
those fingers by.

Speaker 2 (01:25:11):
We had a fun stat we saw this week that
the Lakers were sold the Los Angeles Lakers for evaluation
of ten billion dollars for the Bee, all right, and
it's his daughter that s sold. Jerry Buss was the
original owner of the Lakers, brought it back at nineteen
seventy three, I believe, for around sixty seven million dollars
and exited with a ten billion dollar valuation. Pretty good investment.

(01:25:35):
That's one hundred and forty nine times return.

Speaker 1 (01:25:37):
Yeah, I mean, you say, boy, I'd love to buy
something for that price itself. I'd love to have that
kind of return, So no way I can ever get
that right now.

Speaker 2 (01:25:44):
Great, So the S and P five hundred. If he
would have said, you know, I don't want the Lakers,
I'm just going to put in the S and P
five hundred instead, that sixty seven million would have turned
into thirteen billion dollars. Probably had a little more fun
Lakers probably did. Yeah, But yes, the S and P
beat the return of owning one of the greatest sports

(01:26:06):
franchises and the growth of the sports franchise really over
the last.

Speaker 1 (01:26:10):
Time about as good as you could get with a
sports franchise, about as about as well as you could.

Speaker 2 (01:26:15):
Do, from almost really in irrelevancy to one of the
most valuable teams in the world. That's that's just you
can do the same thing with the s and b
BI hunters.

Speaker 1 (01:26:27):
I love that statistic. You know. One of the things
that surprises me when you when you see a new technology,
you think, who's that gonna help? Who's that gonna hurt?
And with the Weimo and the Robotax, you know, I thought,
oh boy, here Uber not this is not going to
be good for Uber. Uber is close to an all
time high. They're partnering with all these people, and what's
going to happen is Uber is going to be using

(01:26:48):
Weimo vehicles to shuttle their people around. And guess what,
they just eliminated the most costly part of their business,
the driver. Yeah, it's like a.

Speaker 3 (01:27:00):
It's just more infrastructure they had for a while.

Speaker 2 (01:27:03):
They if you watch the original Uber series that they
have on Netflix about the creation of Uber, they actually
talk about this how they wanted to do the self
driving vehicles, and I believe they stole someone from Google
to help create it and end up not working because
of exactly your point. The CEO at that time knew
he needed to cut out the driver. That was the
most expensive part of that thing. And it's just really

(01:27:26):
smart on Uber's part because of their network effect of
the app. Right, everyone knows I'm gonna call an uber,
I'm gonna call a lyft and they have that Kleenex
effect our language. Right, No one's gonna download a Waymo
app to order a weay moo because you know it's
it's an extra step. So if they can get it on,
it's a perfect synergy.

Speaker 1 (01:27:46):
There. Not living in Phoenix, I've never is there a
mo app? I guess there is? Right, Yeah, I mean I.

Speaker 2 (01:27:54):
But definitely there is.

Speaker 1 (01:27:56):
Yeah, that's because that's how you get them, right. But
I think one of the more interesting things about Waymo
that I found out. I mentioned it last week on
the show. Those are all Jaguar vehicles SUVs.

Speaker 2 (01:28:09):
Seems like a pretty expensive class.

Speaker 1 (01:28:10):
Yeah, every weymo is a Jaguar Suv. It's not a
hugely expensive car. My wife drives one, and the like,
oh it's one hundred dollar car. It's not you know,
she wouldn't be driving. They're not. They're not that much
more expensive than any other vehicle. In fact, they're a
lot less expensive than a lot of these fancy like

(01:28:31):
Porsches and things, a lot less expensive. But it is
interesting that that they're all Jaguars and are They are
going to be manufactured on a plant outside of Mesa,
So that's that's good for AIR. I just cannot get
over the number of corporate headquarters, corporate uh footprints that

(01:28:52):
are happening in Phoeni, Phoenix. It's just mind boggling.

Speaker 3 (01:28:55):
It's awesome.

Speaker 1 (01:28:56):
I mean, it's it's just it's just amazing. I mean,
the city is already the fourth largest in the country.
I don't think there's probably any chance of the mcclipsey
New York ally in Chicago, but there's nobody, nobody else
is gonna be close to them.

Speaker 2 (01:29:09):
Yeah, and it's it's really going to be the next
Silicon Valley. It's looking like it seems like it. I
mean that's where it's all going to be. Yeah, it's
and uh, you know, a s U School of Innovation
bringing the innovation to the valley.

Speaker 1 (01:29:23):
Oh my god, you guys, are we do we have
to go there? Do we have to do it? You know,
we're saying we're sending a little love to the Phoenix
and they they got to get put up with the food.

Speaker 2 (01:29:33):
Do you think brought the businesses back?

Speaker 1 (01:29:34):
Yeah? Wow alumni, Yeah, I think I think they should
be forked right, whatever, whatever.

Speaker 3 (01:29:42):
We're talking about stable coins. You know, when I went
up this week Visa and stable coins, Visa and masters,
I saw that. How did they go up this week?

Speaker 1 (01:29:51):
Because it isn't that big of a threat.

Speaker 3 (01:29:53):
No, because they they're going to release their own stable.

Speaker 1 (01:29:55):
Courts, they have their own table car.

Speaker 3 (01:29:58):
They're trying, they're working on the technolog you for it.
I just can't actually know they've been working on this.

Speaker 1 (01:30:02):
I'm just the bit to run into this for the
first time to get a real life feel for what
this is all.

Speaker 2 (01:30:08):
Again, why would you an American would never use a
stable coin?

Speaker 1 (01:30:11):
Why? Like so, why would Visa MasterCards need them?

Speaker 2 (01:30:15):
Because you are still using dollars. So when you send
a zel, is that not a digital dollar? When you
send money through Zel, yes, digital dollars, that is essentially
a stable coin. You will never know you're using a
stable coin. It'll still just say dollars.

Speaker 1 (01:30:29):
And we need it because there are parts of the
world that do not have access to the dollar.

Speaker 3 (01:30:34):
No transaction transaction COSG transaction costs for the company so
efficient on Amazon, I will be able to go buy
two hundred dollars worth of stable coin of Amazon stable coin,
right and if I use that two hundred dollars worth
of stable coin, they'll give me a let's call it,
a three percent discount on whatever it is that I'm buying.
Why is that? Why are they going to give me
a discount on that? Because they're not paying that transaction

(01:30:56):
cost to visa two MasterCard, to whatever that credit card
provider is.

Speaker 2 (01:31:00):
And it's bigger than it's just that it's based on settlement.
So the way we settle things now through bank deposits
or credits and trans that can be done through stable
coins and done a lot more efficiently than the old
school way of delivering actual money.

Speaker 3 (01:31:14):
We were talking about it earlier today, Dave, Why do
you know small business owners like card washed guy? He
comes in? Why does he like cash right? No transaction cost?
Why does he like no transaction costs? He gets money
fully in. He gets annoyed if I pay with a
credit card. Why because he has to pay that fee,
which inevitably actually I pay for Because the consumer always
bears a burden.

Speaker 2 (01:31:33):
That's not true. Why we saw that the consumer didn't
bear the burden with Toyota, with foreign cars, because actually
we are getting foreign cars cheaper now because of the tariffs.

Speaker 3 (01:31:42):
Theres Why is that they decided Asia or Japan? Yeah, Asia,
they decided to incur the costs themselves. They didn't inflate
it on the back end. They said screw it. Why
because they want the brand loyalty Toyota in particular, or
Toyota Toyota and did look like Asian exports.

Speaker 2 (01:32:00):
So whoever, you know, whichever companies come out of age.

Speaker 1 (01:32:03):
If there's ten percent here, if they just eat that.

Speaker 3 (01:32:06):
Yeah, and so it was a really interesting chart, and
I'll have to pull it up and show you show
the consumer didn't bear the burden. It's it's what it's
the exact opposite of what you would typically think.

Speaker 1 (01:32:16):
If that's true, I would expect Toyota stock to be declining,
and it has. If it's down ten percent.

Speaker 3 (01:32:22):
It's actually declined quite a bit.

Speaker 1 (01:32:25):
Okay, well that would make sense. That would that would absolutely.

Speaker 3 (01:32:28):
On Friday, what's their year to date and say check it.

Speaker 1 (01:32:32):
I noticed that on it. I think Thursday. Robert F
can't remember. He fired all the vaccine panelists and hired
all new. His revamped government panel of outside vaccine advisors
recommended the use of shot to protect infants from RSV.
Remember he was highly touted as an anti vaxed guy,

(01:32:55):
and here's this group of people that he brought together
who say, yeah, this this vaccine makes sense.

Speaker 2 (01:33:01):
They're down ten percent year to date, that the Toyota Okay,
well there you go. There's but they're at one point
four on the week.

Speaker 1 (01:33:08):
Anyway, that that vaccine Committee approving there, I speak is
a little bit of a sigh relief to some of
the health officials that we're all concerned about about him
being anti vax and.

Speaker 2 (01:33:18):
Yeah, he's only anti bad vaxes. So yeah, it's a
good thing.

Speaker 3 (01:33:22):
And in his opinion, ours is for elderly.

Speaker 1 (01:33:26):
Our speaker is for infants and elderly. Yeah, it's a
it's a long disorder. It's the number one reason that
children are hospitalized, number one reason, and it's one of
the leading causes of death amongst elderly.

Speaker 2 (01:33:39):
I have a question for you, David. If you had
a device, a wearable device that could tell you exactly
like when you might have a heart attack or like
something's happening it's such like a doctor that's on you,
would you wear sure? Now, would any part of you
care about privacy?

Speaker 1 (01:33:54):
No?

Speaker 2 (01:33:55):
I feel like that's majority of Americans. As much as
much as people think they care about privacy, if it's
convenient enough and it's cool enough, like even your phone. Right,
It's like, as much as we're like we care about privacy,
we do a lot on our phone.

Speaker 1 (01:34:09):
If you're carrying a cell phone around you, you don't
really care about privacy, right, right. I mean you might
say you do, right, but you don't. I mean, that's it.

Speaker 2 (01:34:21):
I think it's an interesting idea.

Speaker 1 (01:34:23):
I think when you when you talk about something that
could save your life, I'll give up some privacy for
that's what privacy am I giving up where I am?
Oh that's exciting. You'll follow that for about two days?
Ely so bored you you want to shoot yourself.

Speaker 2 (01:34:37):
I guess the fear is they'll know exactly your cholesterol,
they'll know your diet.

Speaker 1 (01:34:42):
Yeah, I don't know what they're doing that.

Speaker 3 (01:34:44):
I think that we saw that. You know that back
up your points with Snowden back in twenty thirteen or whatever.
Who cares about that anymore?

Speaker 1 (01:34:50):
No, I just don't. I don't have any problem with
everybody in the entire world knowing everything about my physical condition.
I don't care. Why would I care, Yeah, I mean,
what are you gonna do with it? Yeah?

Speaker 2 (01:35:02):
And I think it was just one of the interesting
points that saw RFK talk about healthcare wearables and how
he wants to prevent, you know, bring that about. And
I think there's going to be a pushback and some
acceptance to that, because, yeah, technology makes it easier for
us to know where we are and our health status, right,
and helps the doctors be better too. But there's also
that like push and pull of I don't want to

(01:35:23):
give you everything type of thing.

Speaker 1 (01:35:25):
So, yeah, I feel like I'm in good health. I
feel like I'm in pretty good shape for someone my age.
I've just recently had a physical all passed with flying colors.
You want to put that on the internet, go ahead,
I like everybody know, right. I mean, so, I'm not
sure what the privacy concerns would be. I don't have them.
So I guess if you had some kind of a

(01:35:45):
dreaded disease that people were afraid of, I could see
that you didn't want to contaminate other people back when
he had COVID, you know that when that was going around. Anyway,
we all want to be happy, and we all want
to be healthy, and at the end of the day,
what we're really trying to be here at Greenberg Financial
is profitable. See you next week.