Market Resilience & Rally: Why Staying Invested Pays Off

Episode Transcript
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Speaker 1 (00:00):
Good morning everybody. It's that time again, Sunday morning, eight
o'clock right here on seven ninety k NST. And this
is Dean Greenberg, and I'm gonna bring you the Money
Matter Show, and the rest of the group will be
here later. Can you believe we are now making money
for the year? The markets are now up for the year? Okay?
And why do I make such an effets on that,

(00:21):
Because I know it's not really hot that high up.
I mean, you got to Dow up point three percent,
you got then the S and P up maybe point
one percent, and the Knaves DAGs down to half and
Russell's down. But the one that's up the most is
the Russell or the S and P five hundred well
equal rating, and they are up two point seven percent.

(00:44):
Why is it such a big deal? Because it reflects
on where we are as a country right now more
than anything. Because right now you hear nothing, hear nothing
about the markets are now back up for the year.
But about a month ago, month and a half ago,
all we heard was Trump is destroying your four one

(01:10):
K plan, Trump is destroying your investments. Trump is ruining you.
You better watch out and you better not shout you
better just get out. That's all we heard as a
market slid from the fifty nine hundred level down to
forty eight hundred, back to about fifty one hundred, and

(01:33):
then we have rallied. We have rallied twenty from those
olders that go back up to where we are now.
But all you heard was in the media, in social media.
Your four to one K plan is destroyed. He's destroying, destroying, destroying.
And now that we're back up and now things are
starting to look better. Now there are negotiations going on.

(01:57):
It looks like we can get some type of negotiation,
possibly peace in the Middle East. People are wanting to
do business with us again. But you hear nothing, no chirping,
know nothing about Hey, you know what, maybe we were wrong.
Only good people admit when they blast you on something
that's bad, that they're wrong. But you know what, how

(02:22):
will you feel right now if you sold out everything
when they were telling you how bad it was and
how much further down it was going and it's not
going to be good and we're going into a recession
and everything's going to be terrible. They did the same
thing when he was in when he first got into it,
we destroy the economy. He's going to destroy the economy.
I'm telling you right now. He's got good, smart people

(02:46):
around him. He's a visionary. He's not the same. He
doesn't do the detailed work. He's a visionary of wanting
to get things done. And he's a common sense guy
that understands how we're going to get to where we
need to get to. We talked about journeys. You go
from point day to point B. You know how you
want to get there. But it's not smooth. Sometimes you

(03:08):
got problems, sometimes you don't. It's been so saying Trump,
and he's told us is we're gonna have some problems.
I never thought we'd be back here this quickly. But
we did what we always do. We had mitigating risk
on when it came down, we took off the mitigation
risk and we went in and started buying for people

(03:28):
that were underinvested. We got started buying into more quality
stuff that was maybe get done and got more invested. Well,
now it's come up here. You know, evaluations are high again.
Different things can happen again. So we're taking a little
bit money off the table again. Maybe we're gonna break out,
Maybe we're gonna go to new highs. We don't know.

(03:50):
What I do now. Is selling up here is a
hell of a lot better than selling at five thousand.
Buying at five thousands a hell of a lot better
than buying up here. I know that, I can tell
you that for sure. I still think the market's got volatility.
I still think the market has a little risk. I
don't think we're gonna go all the way back down,
but I can't be for sure. I know this evaluations

(04:13):
a little higher. I'm gonna take a little bit of
money off the table. I'm gonna reduce my risk a
little bit, and I'm gonna look for an opportunity if
we come back, or for some other stocks to go.
Remember how nobody wanted Boeing and how bad Boeing was
and nobody should be there, And all of a sudden,
it's back over two hundred, IBM down on was one seventy.
We're talking about how good IBM should be, and that's

(04:34):
the next one to buy. Now it's making all time
new highs. I'm not saying you step up now and
buy these stocks. What I'm saying is opportunities are always
there if you want to go ahead and understand that
it takes time for these to come back. The only
one that's been sitting down there for a long time
and I don't know if I would step up. I

(04:56):
tried to one time, and then I took some law
and moved into other things was Intel. I mean, you
would think by now Intel will get their act together.
I just don't know if they will. But all the
chip stocks, all these all these stocks that are part
of AI that was doing great, that got annihilated, they've
come back nicely. Not to where they were, but they've

(05:19):
come back about sixty seventy percent of where they were,
which is a good move back up. Maybe this is
maybe they'll pull back a little bit and then go
back to where they want and make new highs. But
you know what's funny. All those data centers, remember that
they were doing great. Everything attached the data center was
doing great, and all of a sudden, deep seat came

(05:40):
out and everyone was saying, oh, no, no, no, no,
maybe we'll you know, got to slow down here. Maybe
there's other stuff, maybe it's cheaper. And now they're all
back on that wagon again. They're all back on that wagon.
That's why you never sell everything. But you can reduce positions.
That's why you always diversify, so you never know which

(06:01):
one's gonna be your best winner or your or your
biggest loser. Diversification allocation is the key to being successful
in these markets. We had a good week. I mean
the Dow was up three and a half, the S
and P was up five and a half, the NAZAC
was up seven, the Russell was up for equal weighted
S and P was up for that's a good week.

(06:22):
It's even better that it's better than good. It's a
great week. So where do we go from here? That's
the question. I think we could still try to grind
a little higher. We could have a little bit of
a pullback. I don't think. I think right now we're
back into that two three percent full back buy because
I think they're gonna try to bring this higher. What
is out there now, The deals are being done now,

(06:47):
the market's always forecast what happens further. Could we still
have a recession? I guess so. Uh, you know it's
probably gonna happen. You're gonna see some prices going up,
and those are the ones that are uh, the left
and never the media are all gonna hop on. Look, look
at these prices. They're going through the sky. But they
don't want to look at the other things going down.
They don't want to look at the fact that the
PPI and the CPI numbers are actually going down, not up.

(07:10):
But they make excuses for them. Well, you know, with
the tariffs and all, they can go higher. They could,
but maybe they won't. It's pretty interesting. Walmart comes out
with earnings this week, the CEO says, yeah, we're probably
gonna have to raise rates, raise prices. You know, it
could say lost some money and they want excuses. The
pas CEO says, they're already built in. They don't have

(07:32):
to raise prices. They got the cushions, they got the relationships,
and then they probably won't have to raise prices. So
at the end of the day, don't believe anyone. Do
your research, look at pricing and understand when things get
too good, pair back and when things get too bad
by don't listen to us social media, don't listen to

(07:56):
all these economists. Think about how many people told you
we're having a recession. Guess what's one thing that left
to do. It's the FED lowering interest rates. You know,
they're afraid of tarifts before, so they couldn't lower it,
but they thought that they should lower it in case
we have it slowed down. Well, the tariff situation isn't

(08:19):
getting to to be so bad. Prices are coming down,
oil is coming down. So now what if he keeps
making deals so around the world and people start looking
towards peace and prosperity rather than, like he said, trade
prosperity not nukes. You know, maybe this world would be

(08:43):
a safer place. But it's really interesting to me as
I watched him travel through the Middle East this week
and how the audience enjoys them and he's the same
talks to them like he's talking to normal human beings

(09:04):
and these are the princess and the presidents and the
dictators of all these other countries. But immedia just doesn't
get it. Sometimes they don't understand you can talk to
people normally. Oh, he's siding with them. Cutter is trying
to get an edge in to give us these planes.

(09:25):
This is unconstitutional. This is corrupt. This is this. You
know what's corrupt is when you do things that nobody
else knows about, like making deals with Ukraine and getting
kickbacks making deals with China, with your son being the

(09:47):
head of it. That's corrupt and nobody knows about it
and it's always put under the rug. What's corrupt is
fifty million dollars not having it being spent by Democrats
and not having any tag on it on what it
was spent for, and then finding out it's spent for parties, planes, trips,

(10:11):
personal stuff. That's corrupt. Then when he just said, hey,
we need to know where every penny goes, and all
of a sudden nobody's asking for the money anymore. Isn't
that interesting? But because cutter off is a plane to
the United States of America Department of Defense, you know

(10:34):
that Congress has to agree for it or not. It's
not Trump agreeing to it and saying, okay, this is it.
That's a dictatorship. Whatever he says goes a democracy is
when hey, yeah, that's a great idea. Why do we
put out all this money. We can say five hundred
million dollars right now and stop having to fix up

(10:55):
our planes and have the plane over the only thing
I thought, my first thing was not that there was kickbacks,
not that there was promises or could uh uh or
anything like that. I thought like, Okay, are we going
to make sure that this plane is definitely no, no, no,

(11:16):
it's there's no spy equipment on it. There's nothing that
they can do to get into and bring the plane down,
nothing like that. That's the only thing I thought was, Okay,
can that will they have control of the technology? Is
the conduct? There are there bugs in the conduct to
spy on us with the technology. That's the only thing
I thought. And then you know, you think, well, I
hope respond enough with all the technology we have that

(11:38):
we we cleanse it and we make sure there's nothing
there and no one else can control the planes. I
I was looking at it from a perspective of of safety,
not from a perspective of of greed and and and
and and and and gratitude and stuff. I mean, at
the end of the day, we give away everything and

(12:03):
nobody owes us anything. Have they look at look at NATO,
Look what we have to do to get them to
do give us the money that they have agreed to,
and yet we keep putting in all the money. But
now they finally agreed to it. Did you see that
they will agree to paying five percent of the GDP

(12:23):
as this world gets rescue and riskier. Well, that's what
we need. We'll be there to protect. You do your share,
We'll do our share. But can you imagine now if
Syria gets on board, and then Iran gets on board,
and Hezbollah goes away and har Mosque goes away, and

(12:46):
the Palestinians can go back and live and rebuild their
place without the fear of war, and Israelis can go
and live their life without feeling they're going to be
attacked at any moment. But until Iran does not have
their nuclear power or the ability for a nuclear bomb,

(13:13):
that's not going to go away. But they need to
make a deal with the United States. China they're open
to talks. You know, everyone said, oh, China is all
okay on their own. They don't need us, They don't
need us. We need them. Well, as the news came

(13:34):
out and as you saw, they would say their factories
were closing down. We talked about it on the show
that from people that we knew that were over there,
they were hurting. They were hurting. Yes, can can a
communist nation survive by going ahead and just taking care
of the people? And everything they do goes back to
the to the to the country, Yes, but they don't

(13:56):
want to be like that. They want prosperity, they want
an economy. They want it because that makes them more
richer and powerful as a communist party, because when you
don't go that, you get unrest, and when you get
billions of people that might be unrest, you're going to
have a problem on your hands. So they're going to

(14:20):
go ahead and they want to make a deal, and
part of that is opening back up to US companies.
But again, will they fulfill it, will they stay with it?
I'm not so sure. If I was Apple that I
would want to just say that probably want to go
other places, but I would also want to come back here.
You know, he's not taking the tariffs off everything. He

(14:42):
still wants companies to come back here. He's still going
to be a minimum ten percent tariff, which is great
for us. But as you're seeing, it's things that have
to be done. It's good for the economy. The things
that are happening are good for the economy, and he's
doing this all trying to make it safer. There's not

(15:03):
one positive thing I hear from the left about the border,
not one. All we kept hearing about is we can't
you've got to have you have to you have to
have the give a day in court to these three
million people that are here illegally to make sure that
they don't have a reason that they can stay here. Meanwhile,

(15:27):
I thought it was brilliant by the administration to come
up and say, hey, if you're here illegally in the
last few years, if you're here illegally, you know you're
not supposed to and if we find you, and especially
if you're doing something bad, you get deported, you're done.
They're like, we will pay for you to go back

(15:48):
to your country. We will give you thousand dollars a
person to go back to where your country is, and
then you can get in line to come back, and
we'll try to expediate that the other way. There's nothing
wrong with that. There's nothing wrong with that. But I
don't understand now the Democrats want to fight that. Will

(16:14):
there be some people that are illegal that are sent back,
that are good people, working people, family people, probably, but
it's still illegal. I hope that anybody that's here that's
legally here would not be sent back and there won't
be those type of mistakes. Obviously, I do not want

(16:38):
that to happen. But if people are here illegally and
they haven't done any and they don't want to take
their situation and they're taking a risk, but the chances
of a good person that had been here for a
while that's here illegal, as I'm understanding it, it's going
to be very hard because they're not looking for them.

(17:00):
They're not looking for them. They're looking for the people
that have come here over the last few years illegally,
but looking for the people that are criminals, gang members, killers, murderers,
people with records. That's what they're looking for. That's going

(17:20):
to take a while. Then we'll move forward from there.
But one of the things I do believe we should
be doing and looking at is people that were that
came here with their parents, graduated high school, graduated college.

(17:41):
They're still living here quote considered illegal, but they've got jobs,
they're paying taxes to doing those things. They're still illegal,
but we need to find something for them. We need
to go ahead and make them feel comfortable that they
can be here as they contribute to America. They've been here,
they went to high school here, even they went to

(18:03):
colleges here, and they've been working here. They've been contributing
to being an American even though they're not. Those are
the people we got to find common ground for. Common
sense would work on that situation. So now we put
this all together, I do believe over time, over these

(18:25):
four years, we're going to see very good markets. We're
gonna get this tax bill done. You're gonna put money
in people's pockets that work on tips, social Security over time,
hard working American senior citizens that could definitely use a

(18:47):
tax break by just not paying taxes on things that
are over and above. And honestly, you know a lot
of people I know don't like this, but they said
it anyway. On people making a lot of money, I
mean a lot of money if you get taxed another

(19:09):
one and a half percent because you raise the highest
tax bracket over I don't know, a million dollars a year, Okay,
I'm okay with that. It's a compromise. I'm a compromiser
that shows say, hey, I'm giving money to people working
on tits, which are usually people not making five hundred

(19:32):
thousand dollars. I'm giving Social Security taking tax onf They've
already paid their taxes on Social Security when they when
they when they were earning their moneys. Now I'm giving
them a break. People that work hard to do overtime
because they need more money, they want to save more money.
Don't tax them on that. I'm okay, I'm okay with that.

(19:57):
To go ahead and raise the top tax bracket just
a little bit, not a lot. That's a compromise. See,
we all have to compromise. Both sides have to compromise. Okay,
the Republicans are going to have to get together and
compromise and make sure they get this bill done. If

(20:17):
we screw this up like we did last time, shame
on us, Shame on us. We've got the momentum, we've
got the people. They're excited. Now we have to go
ahead and make sure the job gets done. And if
that job gets done, you and I both know what's
gonna happen. We're gonna be doing fantastic in America. People

(20:42):
are gonna be happy again. They're gonna be making more
money to pay for a few things that might be
a little bit more expensive. But the markets are gonna
go higher, So the fall one K plans are gonna
go higher. And you're not gonna hear anyone on the
left say Hey, look at this fall one k plans,
even though they all want it to be higher, and
they feel good about it. And if you can imagine

(21:02):
if we can get Europe to unify and help, and
we get Ukraine and Russia to stop fighting, and we
get peace in the Middle East, and then look what
he did with India and Pakistan. He got that stop
pretty quickly. That doesn't mean it's gonna always be stopped,
but right now there's a cease fire, no one's dying.

(21:24):
That's what we need to get in Ukraine. And then
we got to get that in the Middle East. Then
start working towards a real, real deal. You get the
world moving in the right direction. You know, everyone said, oh,
well global economy. Yeah, a global economy with a hell
of a lot of fighting going on all out in
the world, which only opens the door for greed and

(21:48):
obviously for people doing things they're not supposed to do.
We you know, we said this for years and we've
never heard an answer. All the money we give to Ukraine,
where does it go. We don't follow the money, the
money we give to Israel, the money we give around
the world. We don't have a way to follow the
money of where it's going, and you know it lands

(22:08):
in the pockets of the power. Some does go all
the places, some in the power. We need to make
the world better. We always talk in America. You got
everyone protesting in America for equal opportunities. I love equal opportunities.
I don't like checkbox opportunities. It's a difference. Equal opportunities

(22:29):
means everybody has an opportunity to do it. The best
person gets the job, the best person gets to be
the first string, the best person gets that. If you
want to get to that. If the argument is we
got to give more opportunities to people that don't always
have those doors open, I'm all for it. But I'm
not all for Okay, we got a white person, we

(22:50):
got a black person. Now we got to get a woman.
Oh now we got to get a black woman. And
no matter what the qualifications are, that's not what I'm about.
Equal opportunities helping those at the lower playing field come
up to the upper playing field. When that happens, we
are going to skyrocket. We are going to be in
great shape. All I'm looking for is for my children,

(23:13):
my grandchildren and their children to have a society that
doesn't dissolve and go broke because it got too heavy
in debt and the world wanted us to fall to
number two or number three. They wanted the dollar to
go away. They didn't want us make a decisions. Well,
you see how quickly that has changed. See how quickly

(23:35):
we have now looked like a very powerful country in
the world, and we're not that bad. I don't care
what people say, I don't care what people protests. But
the biggest thing that I love is you now seeing
when the college has said no one can leave these
protests and if you don't have and if you don't
have a student ID, you got to stay here and

(23:56):
we're arresting you. Now you're seeing how many people go
to these oh tests. They're not even college students. They're
just stir it up, stir it up. Where's that money
coming from? And lastly, are we ever gonna find out
who ran the country for four years? I do not
understand why the Republicans don't open up and stop finding
out and put a special counsel together like they did

(24:19):
with everything else, and honestly bring these people to the
table and find out why and who was doing what
they were doing when they did it. We'll be back
the markets in good shape. Be careful. This is the
Money Matter Show. Thank you for listening. Welcome back everybody

(24:41):
to the Money Matter Show. I got Dave Sherwood, I
got Sebastian and Todd and myself here to bring you
another hour and a half of The Money Matter Show.
Good morning boys.

Speaker 2 (24:54):
The explosion on Monday right last weekend. We talked on
the show last weekend about the trade talks and hoping
that something positive could come out. We didn't dream that
it would be as positive as it was, did we.

Speaker 1 (25:06):
Well, this is how positive it was. My ex wife
text me, who's right now doing a a thing with
the idf O in Israel? Okay, just as a volunteer.
Text me and goes, I can't believe you were so right,
I said, what do you mean? You told me that
they were going to make a deal with China and

(25:27):
the markets would go up, and you stopped me from selling.
Thank you. And by the way, she doesn't have an
account with us. I'm just yes, she uses me still.

Speaker 2 (25:35):
We kept it.

Speaker 1 (25:36):
But but for her to go ahead and text me that,
and you know that that was something that people didn't
know what was gonna thought that was going to happen.

Speaker 2 (25:43):
Well, I understand that thirty days ago the market the
twenty percent lower, didn't You wondered if the guy even
know what he was talking about. Those of us that
kind of can see a big picture believe that this
was the right track. And sure enough it turned out.
You know, has been amazing. He's got so much criticism
about these tariffs and they have worked so well that

(26:07):
even the pope was made in America. Well, I mean,
come on.

Speaker 3 (26:13):
A week, you know, no iPhones.

Speaker 1 (26:20):
Listen, you know, that's why I send JD. Vance over there. Yeah,
just to make sure he died on Easter and that
we'll get to American America.

Speaker 2 (26:26):
Make sure you getting American pope.

Speaker 1 (26:28):
Yees what they're saying, right.

Speaker 2 (26:29):
Yeah. It was funny because when they first started off,
by the way, that's that's not what we believe it is.
But when they first started off this, well maybe the
because the Pope has been kind of uh anti Trump,
anti Vance, and then well maybe that maybe they selected
the pope to help offset Trump. And I think I
don't know if it was it was the left that
was saying that, and so Trump's now running with that

(26:49):
and saying that he's responsible for the first American why
not if they're going to say, well, they probably picked
him because offset you Okay, then I'm respond, you know.
And then we talked about the first hundred days. The
press was all over this, the first hundred days of
its administration being the worst, sense Nixon. The marketing performance

(27:10):
was the worst, sense ni than.

Speaker 3 (27:12):
Oh, the market perform performance was the worst, sense.

Speaker 2 (27:14):
Nixan And the last thirty days have been maybe the
best in history.

Speaker 3 (27:19):
What we said, twenty three percent off the lows, twenty.

Speaker 2 (27:22):
Three percent off of the low he had just what
five weeks ago?

Speaker 3 (27:26):
Five weeks ago, early April, everyone seemed to be dire
about the economy. The question is, though we did get
a negative quarter GDP, we seemingly all believe we would
get a negative quarter as well in Q two, Right,
So does that technically mean we're in recession? And does
these trade deals, which most of them are still trade pauses.
There's not as many trade deals as kind of the

(27:48):
market seems to want to believe there is. We have
UK and US. The China deal wasn't a deal, it
was a pause. They're still trying to work out a deal.
Other than the UK US deal. I don't know if
there's a major country has actually made another deal.

Speaker 2 (28:02):
No, I don't think so either. But I think the
pause of the tariffs with China takes recession off the table.

Speaker 3 (28:11):
Well, then why did we get a negative quarter one?

Speaker 2 (28:15):
Negative? We did get a negative Q one and if
you saw on Friday the Atlanta Fed is now projecting
Q two will be positive two and a half percent,
it's a long way from positive two and a half
percent to negative. To me, we need two negative quarters
consecutively for a recession.

Speaker 3 (28:30):
Well, let's think about this. We did not have tariffs
in quarter one, Nope, they weren't set till Ampil second.
So why were we having a negative GDP in quarter one?

Speaker 2 (28:39):
Then? Just a general slowdown? I think concern about tariff's coming. Sometimes,
you know, the concern about what's coming is worse than
what comes.

Speaker 3 (28:48):
And now that we've had already half of this quarter
with that same type of fear, we saw where the
markets were.

Speaker 2 (28:54):
And also, I've got to tell you though, in full disclosure,
I'm feeling a little pressure today because I found out
last week that our client, al who's been with us
for a long time, and he's been a listener for
a long time. Al. Every Sunday morning, Al gets in
his pickup truck and he drives to the gym. But
before he gets out of his pickup truck at eight am,

(29:15):
he sits and listens to.

Speaker 3 (29:16):
Our show for two hours.

Speaker 2 (29:18):
For two hours, and then he goes in the gym.
So I am really feeling a lot of pressure, Al,
to make this worth your while. So can you help
me with that?

Speaker 3 (29:27):
Todd, Well, you kind of got I don't even know
what you're talking about. I'm just thinking of a guy
sitting to us for two hours. I appreciate the support.

Speaker 2 (29:35):
We appreciate, Al, we do.

Speaker 3 (29:37):
I appreciate Al big Al.

Speaker 2 (29:39):
It's nice of him to say. You know, so many
people over the last month or so have wondered if
Trump knew what he was doing, and it appears now
that there is a growing consensus that he probably does.
And I think the thing that I've thought through this
entire thing, Dean, is thankfully someone is trying to do something.

(30:04):
I mean, this ship is headed to an iceberg at
fifty knots. It's thankfully someone is trying to do something.

Speaker 1 (30:11):
But from day one we spoke about it, and I
told you that what he's going to do, what is happening,
and what he's trying to do is great. He's trying
to get us out of debt. He's trying to make
our generations to come not have to take on what's
going on now, because someone's going to have to handle
it at sometime. And maybe this is why he got
He lost, He came back and he only has four

(30:32):
years and he doesn't have to run again. Why so,
And he's strong enough to take it on. But the
people he has around him beset. The Treasury secretary. It's
so smart when it comes to money, currency, the way
it works globally. He ran huge headphones. He knows exactly

(30:54):
the correlations with everything that's happening beyond most people's imaginations. Okay,
and people just say it, but this is how you know,
they don't know what the hell they're talking about. As
soon as it's going down, they're jumping all over Trump
and that he's an idiot and he's losing all your money.
Now it's up. Nobody wants to say anything. They never
They just want to come up with stuff and not

(31:16):
tell the truth. He said to us there was going
to be some bumps in the road. I don't think
he thought it was going to be this short lived.
I still think there can be some bumps in the road.

Speaker 2 (31:27):
Okay, got done, We're not done.

Speaker 1 (31:29):
Okay, there's going to be some things. Like Todd said,
the deals are in ink, but there's discussions. You have
to start someplace. You don't one day say the war
is over. You get a cease fire a couple of
times until you finally do it. It's like being married
before you get divorced. You just don't sit awake up

(31:49):
one day and say I'm divorced. Well, maybe some people do,
most people don't. It's years of battling back and forth,
should we get divorce, should we get a divorced? Should
we get a divorce? Until finally you say this ain't
work it and they get divorced okay, or this is
working and they stay together. It's a series of lengths
of time, and nobody wants to ever look past what

(32:11):
they see in front of them on that damn social
media bull crap. Okay, that feeds their minds of whatever
they want to know.

Speaker 2 (32:20):
Well, and I all, we all know that the bad
news sells papers, right, So you turn on the station
and into everything in the world is good. We got
the border secured. Men aren't going to be in women's
sports anymore. One of the reasons trade trade.

Speaker 1 (32:34):
Timeout we put down back to the astronauts. We forgot
all about that. Yeah, they hate money, they love us
now they hate must the cause that they said, we're
going to make a man date. Everybody has to have
an electric car. Let's blow up the elect all the teslas.

Speaker 2 (32:48):
Uh, yeah, absolutely.

Speaker 4 (32:51):
Let's go vandalize them. Yeah, it's ridiculous.

Speaker 1 (32:54):
You know what I'm saying. They don't. It makes no sense.
They make no sense to me. And that's what I think.
I'm gives me more when I when I talk to
people that tried to make their argument, it doesn't make sense.
Give me a sensible argument. The other day, I'm talking
to someone that is so far it's still on the left,
and she comes up with, you know what I think.
I think we're going to have to go ahead and

(33:15):
realize that we have to get a white male in
if we want to win this. Okay, wow, this is
this is different. Not even twenty four hours later, I
see it all over the headlines that that's what they're
talking about. So some sorts that she had made them
realize it's time for a white male, even though they
don't want it. That's the only way the Democrats a

(33:36):
young white male that can come back and win. I'm like,
you don't come up with any of your own information,
your own common sense. You just you're just regurgitating whatever
you're fed. And that's the real problem. Yeah, you know
you've said before, come up with a plan.

Speaker 2 (33:53):
Yeah, don't just say everything that's wrong with or are
perceived to be wrong with Trump's plan. Come up with
your own plan. Obviously, some of the things Trump is
doing are working.

Speaker 1 (34:05):
And someone might not work. I get that. We all
know that some things he says are stupid and horrible.
We don't like it. Other things they do were great.
But at least we were honest about what side of
the whole thing is. Take it all away. I'm all
about the economy. Because you have a strong economy, you
have a strong country, You have able to help others.
But when we're just giving away and giving away and

(34:26):
taking from ourselves, we don't have a strong country. Well,
I can't believe in six months now five months, become
such a strong country again. People are listening to it.
I want to deal with us globally.

Speaker 2 (34:38):
Yes, yeah, absolutely, which is great for us.

Speaker 1 (34:40):
Now we can go back and do the things we
want to do. The markets will do well. Right your
four on ande K plan, which they were complaining about
all the time. I hope you didn't sell. I hope
you didn't listen to the bozos, and I hope you
stayed in and I hope you bought more.

Speaker 2 (34:56):
We met with a number of clients during the down
twing lasted about a month, right, and reassured people that
every market decline is an opportunity to buy. Every market
decline is has been followed by a new all time high.
And we've put a little insurance on for a couple
of people that were nervous. Yeah, and that's fine. You know,

(35:16):
whatever it takes to get you to sleep.

Speaker 1 (35:18):
And we also got all the mitigating risks is stuff
that we had on we took off down there, right okay,
right now we're looking to see if we put it
back on again. You don't lose, you don't win, you
don't make money. When you're just mitigating whisks. You still
lose it, but not as much.

Speaker 4 (35:31):
Right on this last sound turn, I kind of feel
like we educate our clients enough to the to the
point that I had a lot of calls from clients saying, hey,
why don't we buy some more right here?

Speaker 1 (35:41):
Yeah, that's what they hed, right, That's that's the way
a bunch of our clients are, or they don't call
us because they know that's.

Speaker 4 (35:48):
What we're going to do to the financial plan.

Speaker 1 (35:49):
Then all right, we got to wrap this one up.
We got another little break here. We'll be back for
our next segment before the bottom of the top of
the hour is the Money Matter Show. We do appreciate
you listening. Welcome back, everybody. This is the Money Body
Show with Dave and Sebastian and Todd and myself.

Speaker 2 (36:07):
You know, I want to talk about a stock that
is on a lot of people's minds right now. It
is the worst performing Dow stock of all of them,
obviously United Healthcare, and I wanted to talk about, well,
you're still here, down twenty five percent for the year,
fifty percent off of it is high. It lost another
seventeen percent on Tuesday to the lowest level since the pandemic.

(36:30):
After the CEO stepped down and they suspended their guidance.
A seventy two year old former CEO has taken over.
Then the next day we find out that the company
is under sec investigation for Medicare fraud by the Justice Department.
That sent the stock down another fifteen percent. And we

(36:51):
find out Friday that on Wednesday, after the initial drop,
one of the directors and before the DOJ announcement, one
of the directors bought five hundred thousand dollars with the stock.
Now that's not just pennies, that's five hundred thousand dollars
with the stock, and that caused the stock to bounce
back up on Friday. I think it went from it

(37:12):
was four hundred change a week ago, it dropped down
to I think the lower was around two forty nine.
Closed Friday around close to three hundred, was pushing three hundred.
What do you think? What are your thoughts on Unite Healthcare.

Speaker 1 (37:27):
Every time that there's anything that comes across illegally that
does an investigation, I kind of use the bounce to
get out. I used to not I would just stay
in it because all it's got to come back or
add to it and it goes. But anytimes there's a
I mean, this is Medicare for it, so you got
the doj in this one. But you know with the

(37:49):
SEC or something like that, or find new investigations. They
always find something to hold you up. You know when
there's a when there's when there's something that's wrongfully, wrongfully done,
even at the end if it's not, that's what will
bounce the stock, But it becomes dead money for a
while because usually the stock won't do anything until things
get resolved.

Speaker 2 (38:09):
And we've seen that with three M went on for
a couple of years before they then became the best
performing dovestock. We saw it with Boyne went on for
a couple of years before that became the best performing dovestock.
Do you think this is another case?

Speaker 1 (38:22):
The thing that bothers me about this is medicaid fraud.
For those two words true, we know it's been going
on a lot. It wouldn't I hope, I don't know.
I don't know. You know that a big company like
you and AH that we all count on it isn't
involved in it. And if it was an involvement, it's

(38:45):
just one department that did something and they all they couldn't.
They didn't see it going on, and obviously people get
fired because of that. But medicaid Ford is a big
problem right now. And if it's going on with one company,
is going on with other companies.

Speaker 2 (39:01):
And you know, I think my take on it is
there's so much noise around this name that I don't
know that it's investible at this point.

Speaker 1 (39:08):
That's what I'm saying.

Speaker 2 (39:09):
And tradeable is tradable. You want trade, you know, if
you're a trader, it's kind of fun. Moves around a lot,
but I don't I don't know as an investment, if
it's a smart thing. You know, stock was over six
hundred dollars just now under three hundred dollars, so you think, god,
half price, that's a pretty good deal.

Speaker 1 (39:24):
Well, and then people that have it at five six
hundred dollars are saying, oh, I can't get out now.
Should I buy more? Don't buy more? And I'm not
so sure. You don't take your loss here, all right,
and look for some other opportunities of things that they're
starting to talk about. Done. AI is back on the
table again. Okay. We talked about in the video when
it was down to that one O five ten area,

(39:45):
how it's still there out and everybody was negative on it,
didn't want to buy it well, but now look where
it's back to now you know, and then there's other
ones you know that looking at Microsoft. Look how much
Microsoft has come up meta. So I would keep my podage.
So if I sold that and looked for the opportunities,
technology is what going to drive this thing, period.

Speaker 2 (40:05):
So if you don't have it, you probably don't buy it.
As an investor, would that be I would? I would
not eat.

Speaker 4 (40:10):
I don't think that the timing of the CEO leaving
the day before the fraud investigation comes about bodeswell whatsoever.

Speaker 2 (40:16):
It's interesting that the director would have bought five hundred
thousand dollars on the drop after the CEO left, right,
not knowing anything about the dog investor.

Speaker 4 (40:25):
So the CEO leaving the day before all the fraud
investigations come about, does that mean THEO, that CEO that
stepped down, he's just done, wipes his hands, clean out
the door.

Speaker 2 (40:36):
Never, I mean then it Never. I mean you'd love
to say yeah, but no, they can absolutely if there's
If there's culpability, he'll be brought to the table for sure.
It doesn't matter that you left. But I think the
stock is tradable. My gut is that there's probably going
to be some speculative buying, perhaps a couple of other

(40:57):
directors seeing what's the five hundred thousand dollars are purchased
for the one director did to this doctor's probably a
couple other directors might know.

Speaker 1 (41:05):
If the directors are buying it. I would probably be
more inclined to speculate with it because they usually look
at it. Hey, just look at what was that? Was
it Alliance? No, w a L what was that Western Alliance?
Western Alliance? Okay, that got down to four or five dollars?
Right bank, right in Arizona. It was an Arizona bank. Bank,

(41:28):
and all the people we knew that new people around
that bank and stuff that were involved, just kept buying it.
And look what happened. Yeah, but of course we didn't
buy it.

Speaker 2 (41:38):
No, And then of course, well, yeah, be care You
gotta be careful when you get information.

Speaker 1 (41:42):
The what wasn't information. These are people that believed in
the bank and understood the bank. It's not like there's
anything else they were saying that this was happening, and
this was happening. You may was when all the banks
for I forgot exactly what was going on, and it
wasn't value.

Speaker 2 (41:59):
Yeah, and I's so I think it's it's probably. I
think you probably you might get a pop up into
the three fifty area here.

Speaker 4 (42:06):
I'd be more inclined to look for a difference company
in the healthcare space if I'm going to go in
that area.

Speaker 2 (42:10):
If you don't own it, don't buy it. If you
do own it, maybe look for Strong.

Speaker 1 (42:15):
So now we're on that subject, will you buy drugs
right now?

Speaker 4 (42:19):
I'd buy Novo Nordisks?

Speaker 1 (42:21):
Why killing them?

Speaker 4 (42:24):
Companies are getting hammered.

Speaker 1 (42:25):
Yeah, because Lily, the the uh what do you call it?
The zep bound, I think there is so much better
than I think.

Speaker 4 (42:33):
Ultimately the demand for the semi glue tide shots are.

Speaker 1 (42:36):
So they're gonna have to come up with a second
generation to be able to do it because the zeppound
is now making people lose a lot more weight than
the than the There's another one coming out eventually too,
that's been through trials and and and stuff that is
even better where they're saying you don't lose your muscle,
it just goes after the fat.

Speaker 4 (42:56):
And that's an el Lily drug. Yeah, I think that
that company benefit. It's a lot more off of the
Alzheimer's as well. They have kind of a too tandem there.

Speaker 2 (43:04):
But I don't think. And that's a fabulous drug and
let's hope it's comes, let's hope it's effective. But I
don't think it's just as sexy as the weight loss drug.

Speaker 1 (43:14):
No, right, I mean, I don't know, Dave All.

Speaker 2 (43:17):
No, it's just hugely important, hugely important.

Speaker 1 (43:20):
It's not sexy because it's something you don't want to
deal with, to talk about, but it would be so
well welcome, it's not even fun.

Speaker 2 (43:27):
There's a difference. There's a heck of a lot more
people overweight than there are with Alzheimer's.

Speaker 1 (43:32):
In your opinion.

Speaker 2 (43:33):
Oh oh, you think there's more people, please, that's any one.
Fifty percent of the country is obedes. Yeah, and if
you use the BMI charts, right.

Speaker 3 (43:42):
There's definitely more people overweight than the people who.

Speaker 2 (43:45):
I mean, that's debatable.

Speaker 1 (43:46):
Yeah, No, it's just you guys think anyone's overweight.

Speaker 2 (43:49):
We do. I don't think Todd's are you talking about?

Speaker 3 (43:52):
That's not true.

Speaker 2 (43:53):
Does Todd stands behind the flag pole? I can't see him.
He's not overweight.

Speaker 1 (43:59):
Just keep talking.

Speaker 3 (44:00):
Don't come up with BMA all right, we didn't invent it.

Speaker 2 (44:03):
But I think we talked last week about about Novo
Nordic's with their GOVI and how they had ain't to
deal with CVS to become their primary choice, and and
they ain't to deal with Hymns and Hers, which they
had sued two months ago to stop selling their with GOVI.
Now they've ain't to deal with them to sell with GOVIE,

(44:24):
And we we speculated at that point, is is that
happening because they're having a hard time with demand.

Speaker 3 (44:30):
I think Eli Lily at sixty times earnings or or
you have Novo at nineteen.

Speaker 2 (44:36):
So it's just, oh, it's not even close.

Speaker 3 (44:38):
There's very different on valuation perspective. But Novo, obviously Eli
Lily has the more pretty future.

Speaker 2 (44:45):
I think I think Dean has said it weather and
Dean said that the zep bound is simply more effective
in test after test after tests than ozempic.

Speaker 1 (44:56):
Yeah.

Speaker 4 (44:56):
But if Novo can find a way to get it
to the consumer cheaper or something like hims and Hers,
I think it'll be it'll benefit them.

Speaker 3 (45:02):
Yeah, and also the people who just want semi glue types,
if they don't care about having the best win.

Speaker 2 (45:08):
If the same price, it goes zupbound instead of yeah.
But I think you're you're onto something there, Sebastian. If
they can get a half priced right, if they could
get a price half weight a certain crowd, right, So
you're doing half price to lose eighty percent as much weight.

Speaker 3 (45:22):
About the generics, I mean, the generics couldn't have been
as good as the best semi glue tides out there
when they were allowed to sell them, but people were
willing to get them because they're cheaper, right.

Speaker 4 (45:30):
People were hammering the compound pharmacuy.

Speaker 2 (45:32):
It was interesting because Trump said he's remembers last weekend.
Trump said he's going to issue an executive order that's
going to bring drug prices down to what the rest
of the world is charging. Turns out he can't do that.

Speaker 3 (45:43):
How would he do that?

Speaker 2 (45:44):
It has to go through Congress. So, oh, he's going
to do it, but he can't.

Speaker 3 (45:47):
Well, I didn't even it was a genuine question. I
just feel like this entire healthcare system is so entrenched
over the last forty years of special lobby groups, and
they did a great job and putting their money into
Congress and getting the as they needed to build the system.
That they have now, because, like you said, not even
the president himself can make the system better. It is

(46:08):
what it is.

Speaker 1 (46:08):
Well, Congress better get off the duff and do something.

Speaker 3 (46:10):
Oh yeah, because they're going to do that because they
care about the people. We saw they don't even vote
for the what was the senators, I mean it wasn't
the House, but the senators didn't vote for the freaking.

Speaker 2 (46:20):
Not one Democratic senator would vote against men and women's sports,
not one.

Speaker 3 (46:26):
So they don't care about people.

Speaker 2 (46:27):
They don't care about the country. They care about their party.

Speaker 3 (46:30):
And I'm not saying so, how are you supposed to
expect them to actually care about people's cost of health care?

Speaker 2 (46:37):
I don't see that happening.

Speaker 3 (46:39):
They care about making sure that the companies that pay
them pay their campaigns keep getting paid.

Speaker 2 (46:44):
And a lot of us are alive and living the
life that we live because of Big Pharma, so thank
you to them. But on the other side of that
comes a lot of power, and they have over the years,
and a.

Speaker 3 (46:56):
Lot of people have died earlier though because of Big
Pharma too. Really, yes, Oxy, you can see that. So
it's not all just sunshine and rainbows. That's obvious.

Speaker 1 (47:06):
Okay, there's two sides of it. Okay, there's two sides
of it. Obviously, if you're in pain, you want help, okay,
But what you don't want to do is be addicted.

Speaker 2 (47:15):
Every medication has some poison, you know, every medication.

Speaker 3 (47:18):
Some has more than others well, and also some are
pretty pointless too, like like we found out with the
COVID vaccine, where you're just putting things in your body.
Who knows what it's gonna do.

Speaker 1 (47:27):
Oh, it's save some lives too. I mean that the
whole COVID thing. You just don't even know why some
people died and some people didn't, why some people got anothers.

Speaker 3 (47:34):
D Why were they requiring a COVID vaccine didn't work?

Speaker 1 (47:36):
All right, we got to go to a heart break.
We'll be right back. This is the Money Mighty Show.
Thank you for listening.

Speaker 3 (47:42):
Welcome back to the Money Matter Show. My name is Todd. Look,
I'm here with David Sherwood, Dean Greenberg, and Sebastian Borcini.
This week it was a positive one. In fact, we
are now positive for the year. On the S and
P five hundred, the Dow was up three point four percent.
The S and P five hundred was up five point
three percent on the week. The Nasdaq led the way
higher at seven point two percent, Russell two thousand was
up four and a half, and the equal Weight was

(48:04):
up four point three percent. So off the lows the
S and P and now twenty three point two percent
off those only three percent away from an all time high.

Speaker 2 (48:14):
It's just absolutely amazing, and I get it. I understand
the rally, but the uh, the intensity of it seems
a little overdone with a lot of the unknown ones
that we don't know. We know we're going to get
higher prices, we know that we're going to have higher
interest rates. I think probably so far we have them.

(48:35):
In the short term. The race has started to move up.
When when they no no, no, no, no, no, no ten years,
the ten years, the two year, and the tenure when
it was interesting because when the news came out on Monday,
it was not only the excitement, and understandably if the
what's been weighed down the market over the last thirty

(48:57):
days has been this concern that China and the US
are going to get into a prolonged trade war and
that's going to create all kinds of supply chain issues, availability, issues,
rising interest rates, inflation, all kinds of craziness. And when
they came out on Monday and said the US and

(49:18):
China had agreed to pause their teriffs for ninety days,
instantly you thought, hey, these guys are going to be
able to make a deal, and if they can make
a deal, then the market probably should be back where
it was before the tariff tantrums started. Not only that,
but now the recession is off the table.

Speaker 1 (49:38):
Right.

Speaker 2 (49:39):
Yeah, I'm not saying I'm not saying that this doesn't case,
but that's what the market believes. Yeah, I mean, you're
not going to see many weeks with the market S
ANDP going up five percent.

Speaker 3 (49:48):
Well, the fact in one week, you don't see many
weeks with S and P goes up every single.

Speaker 2 (49:52):
Day, every single day, five consecutive days, five percent, and
that's after an explosion higher on Monday. About what, we.

Speaker 3 (50:02):
Didn't give any of it about.

Speaker 2 (50:03):
I gave none of it back, and it was no
dep throughout the week. Believe me, I was trying to
short the market and didn't work out for me.

Speaker 3 (50:09):
Well, you know what was the leading indicator for this
was bitcoin? Because last week we had bitcoin. He reached
back to its previous well not quite its previous all
time high, but it's also right right there. And they
had a big run up last week. So bitcoin knew
something about the trade deal because by the time Monday
came around, the market caught up.

Speaker 2 (50:29):
And then interestingly, this week bitcoin is flat. Didn't do
anything right well.

Speaker 3 (50:33):
Last week the market go exploded higher. It was like
the exact opposite. So I there's something really interesting with
how we're going to have these trade deals come to
fruition and whether or not the AI rally plus the
trade deal can get us back even above the all
time high. If you have those two combinations, and you

(50:54):
even have a fed maybe lowering rates or just keeping
them stable over the next year, you could see a
path to sixty six hundred.

Speaker 2 (51:04):
Yes, yes, I think. And we all hoped and believed
that Trump becoming president would be good for the market.
A businessman in taking away regulation, helping business to get
more to be more successful, trade deals certainly better for
the country. It all, we all thought that it would

(51:27):
be a good thing. And that's why the market rallied
so much after the election, because they all believe that
Trump being president is good for the market. I agree
with that and I think probably two years, three years
down the road, assuming we don't get another pandemic, the
market could be noticeably higher.

Speaker 4 (51:43):
Talking about deregulation and just different spaces to be invested in.
Did you guys see what our friends over the pond
did it this week and their energy bills. No, I
don't really typically pay attention to that either, just so
you do know, Oh really yeah, but Great British Energy
out to twenty twenty five they implemented this. The initial
focus really talks about the offshore wind, hydrogen and solar

(52:04):
power to creates clean energy. But the one thing that
I did want to highlights is it's going to work
alongside the Great British Nuclear Company to support these nuclear projects.
More and more countries are starting to implement this and deregulate,
hopefully opening the door for nuclear space. I think again,
this is a place that you want to be invested

(52:25):
in over the next ten fifteen years.

Speaker 2 (52:27):
I love that. I love that that's happening in our world.
After Three Mile Island, I thought I'm going to die
with a nuclear is never going to come back in
my lifetime. And I love that we're embracing nuclear again.
It is without a doubt the way to go. Obviously,
the risk are contained, there are issues. That's not a

(52:50):
free ride, but it is absolutely the way to go,
and I'm thrilled to see that becoming more and more acceptable.
I never thought i'd see the day when that would
see the light of day in the US, and I'm thrilled.

Speaker 3 (53:03):
Yeah, it's a really big thing for just the future
of AI to be able to rely on clean, cheap energy.
Eventually we need to keep drilling or we have to
get off the fossil fuel systems. So either we have
to keep the presidents that are actually going to be
pro energy because eventually, if you get away from the oil,

(53:25):
these other countries aren't going to be able to keep
progressing either. So we need additional sources of energy.

Speaker 2 (53:31):
It's funny how nuclear once again became acceptable because of
the power required by technology, by new technology, and you
you have a couple of choices, right, you can have
windmills all over the place that are annoying and kill
birds and you know, on and on and on. Or

(53:51):
you can get more coal. Let's do let's get more
coal fired plants like China. You know, China has got
like sixty coal fired plants on the on the drawing board,
and you wonder why we can't get clean air. You
wonder why there's problems in the atmosphere from pollution. You
don't have to look any further than China and India.

(54:12):
I mean, they generated there a third of the world's economy.
They generate about forty percent of the world's pollution. We
can be as clean. I don't know, I got off
on this tangent. We can be as clean as clean
can be and it isn't going to make a heck
of a lot of difference.

Speaker 3 (54:25):
Well, plus this, the ideas of some of these policies
are very just make you feel good, but they don't
do anything in reality. We know the mining of electric cars,
how much cost of energy cost to the climate that is,
they're not going to talk about that. You're not going
to talk about the fact that majority of the fueling
is there. There's a host of things like if you
think about how California though all their wildfires is because

(54:47):
they don't want to clear off the brush because they're environmentalists.
You can't take away Well guess what when you don't
do that, then you have these crazy big fires. So
you start to see that you can't just make yourself
feel good on the front end and then have these
huge problems on the back end. And that's what a
lot of these policies do. And it just seems like
anything around along the lines of socialism or communism, that's

(55:09):
that's what it looks. It feels really good on the
front end, you get everything cheap, but on the back end,
on the long run, you're going to be paying for it.

Speaker 2 (55:16):
And it's interesting that it was it's technology that opened
this door to nuclear because it's become if you have
to have more power, and that's a given, then the
most acceptable way hold your nose nuclear right.

Speaker 3 (55:33):
And you know what technology also does is it promotes decentralization.
And that's what we're seeing as the theme of President
Trump's administration is decentralization. It's doze Department of government efficiency,
taking away centralized power and giving it to more decentralized people.
We realize that the private companies know a lot more
about their industries than the regulators trying to regulate it.

(55:56):
They always make mistakes, They always make it a lot
harder to do better for the end to person, the client.
The regular is supposed to protect the client, but often
makes the product for the client at the end of
the day worse.

Speaker 2 (56:07):
And the founders of this country tried real hard in
the early going not to make the central government be powerful.

Speaker 3 (56:13):
That's why you had states.

Speaker 2 (56:14):
Were supposed to be states' rights, right, that was the
whole idea behind this country. And over the years just
kind of morphed away from that.

Speaker 3 (56:22):
Yeah, you got the federal government getting more and more power,
and that's the danger again. Everyone, well not everyone. Some
of the people will talk really badly about Trump's decision
on abortion, but giving it back to the states is
the original founding father's opinion. You can vote with your feet.
You can go to a different state if you so desired.
The economically in a client may not be able to
and that's unfortunate. But on the masses, people are allowed

(56:44):
to just go over to the next line and pick
one that they want, or vote for one that vote
for the changes they want. If enough people agree, they
will change. You don't agree with the people in your state,
go to a different one. But that gives you the
ability to be decentralized and have the best outcome per region.
You know, sometimes you're going to make different decisions in
the south, and you are going to make in the
north or the west to the east, and so having

(57:06):
a big, national wide policy has really impeded us from
the growth we could have made if it was more
regional specific.

Speaker 2 (57:13):
I agree. I agree. Let's look at a couple of
things that the market. Oil was up a dollar this week,
got to sixty two forty gold. Here's the interesting part.
Over the last two weeks, I have seen a flood
of advertisements for gold.

Speaker 3 (57:29):
Advertisements.

Speaker 2 (57:30):
Yeah, as you want, people trying to sell you their
gold because it's the greatest place to have your money.
Which makes me wonder if it's the greatest place to
have your money, why do they want to sell.

Speaker 3 (57:41):
Me their Is it thirty thousand? We're going to thirty thousand?
Days to go to gold. Yeah, gold's going to thirty thousand,
that's what I heard.

Speaker 2 (57:49):
That's certainly possible, but down to another one hundred and
forty dollars to thirty one to ninety, now about ten
percent off of its high hit about three weeks ago. Now,
I don't know where it's going. We didn't know why
it was up there.

Speaker 3 (58:04):
Well, I mean, I think we do have an idea
that it's been central banks, and we've gotten somewhat of
a confirmation that's that China's been buying a lot under
the radar, not reporting it.

Speaker 2 (58:14):
They're buying a lot.

Speaker 3 (58:15):
The central banks around the world are buying a lot
of gold.

Speaker 2 (58:18):
There seems to be no other explanation that makes any
sense to.

Speaker 3 (58:22):
Me, though, I don't think there's any way this is
too much gold being bought.

Speaker 2 (58:26):
But then you wonder, how does the drop ten percent?
Do they all of a sudden do they take a
pause and say, let's let it come back to us
a deal away they go again?

Speaker 3 (58:33):
I mean, was it the pause from I mean China
did pause this week? I mean, this is the biggest
weekly drop in gold that we've seen. Yes, really since Yes,
all of this so potentially is that who knows? I mean,
there's obviously at some point a sellof that had to
occur in goal. Do you look at that chart? It
was parabolic. You don't have things grow to the sky.

Speaker 2 (58:52):
On the show last week, we were talking about the
CPI that was released this past weekend. We were concerned
about what the tariffs, if in anything, have done to
the CPI, and we wondered if the drop in oil
and the drop in shelter, which of course there's houses
and rant apartments, would offset any increases from the tariffs.

(59:13):
Sure enough, we got CPI at two point three percent
for April, which was the lowest in four years. There's
been no impact from the tarioft shit on that. Amazon
says they've seen no price increases.

Speaker 3 (59:27):
Well, you've had a fear decrease in the overall marketplace
the vics. The volatility on the S and P five
hundred had been up to almost around the sixty. That's
back down to seventeen, below the twenty. Once you get
below fifteen, that's pretty much normal market behavior at that point.
So we've had a re set in the volatility, which
is the ups and downs in the market. We've seen

(59:48):
gold come down, which is kind of also a fear play.
As that comes down, you would have figured that the
fear is kind of sizzling out in the market because
people want to take those assets to more speculation of places.

Speaker 4 (01:00:01):
With the VIX being in at seventeen and not being
in that typical market environment's normal market environments under fifteen.
Like you're saying, don't be surprised if you see a
jump from seventeen to twenty two. Right, that could happen
pretty easily. We could see a little bit of a
sell off here.

Speaker 2 (01:00:15):
And now, what are you talking about seventeen to twenty two?

Speaker 4 (01:00:17):
What in the vix?

Speaker 2 (01:00:18):
Yeah, but you can't buy that anyway, so it doesn't matter. No,
But it's just an indicator. And right now the indicator
is be long or be wrong, right, belong to market?
Be wrong, I think probably.

Speaker 4 (01:00:32):
But I want to go back to that just because
you say that you can't buy the bix. But yes,
it is an indicator. So if you see the vix
ever again at above sixty, that's an indicating you that
you should buy.

Speaker 2 (01:00:43):
Yes, yes, And if you see it down around seventeen,
it's an indicator that they're probably a dip coming. Correct,
there's probably a dip cooming. And I think that's probably
the biggest thing that the market is vulnerable to right now.
Because the news backdrop is pretty good, it's hard to
find something that in the news backdrop that's concerning. You
could talk about, well, prices are gonna be higher because

(01:01:06):
of the tariffs, Okay, I get that. Does that mean
inflation is going to be higher? Well, if oil and
housing don't start to pick up steam.

Speaker 4 (01:01:14):
Probably not all I can tell you like the bad news.
So think about India for example. They were talking about
how they're going to make an agreements to zero percent
tariffs each way. What happens when they say, you know what,
we're actually gonna go ten percent. That's the bad news.

Speaker 2 (01:01:28):
Well, again, none of these agreements are ink. But how
would I mean when you say it's bad news? I
guess I'm thinking in terms of the overall market. What
could possibly I shouldn't say possibly.

Speaker 1 (01:01:41):
It's very easy.

Speaker 3 (01:01:42):
You have one weekend where it says that President Trump
made g mad, he didn't say the right thing. Trade
talks went falled apart. Yep, you have all of a sudden.
I mean, I don't think the war in Ukraine's gonna
make too much of a difference in our markets. But
you had putin in that cease far trying. I mean
that that would be beneficial, you would think if they

(01:02:03):
actually come to resolution. But I honestly it's got to
be somewhat. Of the China ports, we've seen that there's
been a big strike happening in one of the ports.
We also saw a big straight happening in New York,
New Jersey on the whole transit system so interesting that
you're having a little bit of actual strikes you're not

(01:02:23):
really hearing about as much as what you did last year.

Speaker 2 (01:02:26):
Yeah, I think that if the one thing you just
just be I think what I'm trying to say here
is just be cautious. The Marcus had this explosive move higher,
and it would be easy to say, man, I have
got to get all in, and this probably isn't an
ideal time to get all in. I personally would like
to see maybe a five percent pullback.

Speaker 3 (01:02:47):
Yeah, And I think unfortunately, when we're all kind of
thinking that it's too fast, too soon, you won't get
what you want. So it very easily could go, you know,
as people get more and more conservative, because it keeps
going higher and higher. I mean, we'd have this V
shape before we saw it in the pandemic, and when
we saw the first V we said there's no way

(01:03:08):
it can keep going. And it kept going for another
year and a half. So it's not that it can't happen.
And sometimes being too conservative will really get you opportunity
cost going.

Speaker 4 (01:03:18):
Something that makes me pretty bullish on that and exactly
what you're saying a lot of quality companies, quality names
out that are that are still ten fifteen off their highs.
For example, Google, that's a great one. I mean, why
is that thing still not bounced back and recovered.

Speaker 3 (01:03:34):
Well, it has this week, it had, It had a
really decent week on the especially after Wednesday. And that
company has been pretty cheap after all of it's dj
Sews said. It has to deal with as well as
just the gauntlet of you have this breakup that is potential.
So you have this weighing on the company where it's
the cheapest max seven by far. Every other maximum seems

(01:03:58):
to be above thirty on the peat side, and Google
is down in the.

Speaker 2 (01:04:01):
Low Twenties's think of all the things coming at Google.
You've got the Department of Justice lawsuit trying to break
them up, right, You've got Ai taking away their search.

Speaker 3 (01:04:11):
Which wasn't proven. It was just a rumor.

Speaker 2 (01:04:13):
No, that's concern, but it wasn't proven.

Speaker 1 (01:04:16):
It wasn't proven.

Speaker 2 (01:04:17):
It's a concern that people have had.

Speaker 3 (01:04:19):
Yeah, but it's like they prove that that's not true
with their numbers. So I don't know why people still
have that concern.

Speaker 4 (01:04:24):
It's a concern going forward.

Speaker 2 (01:04:25):
I think this, Yeah, because it's not It hasn't happened
this minute. Doesn't mean it's not the trend of the future.

Speaker 3 (01:04:31):
You're not going to chat ever, you always see exactly Yeah, Google, Yah,
GPT and I.

Speaker 2 (01:04:38):
Have a bad relationship.

Speaker 4 (01:04:39):
Even if you don't go to chat bad Mary's probably
got something up their sleep. I think they're probably pretty
good at this AI race. You know, look, big company.

Speaker 3 (01:04:46):
They're going to be just five. I mean most people
don't even haven't heard of Chat. I mean Google is
like a Kleenex at this.

Speaker 2 (01:04:54):
No, I don't like yellow or whatever. You know, it is.
What you go go to to go is to go
through Search Engine and will be. Then they break it up.
What is that going to mean? Will that do anything?
And then of course the Department of Justice lawsuit.

Speaker 3 (01:05:08):
You probably remember when they broke up E. C and T.

Speaker 2 (01:05:10):
Right, Oh my goodness, what a mess, What a mess. Yeah.
Back in the eighties, we had a we had a
sheet of paper that showed all seven of the spinoff
companies and there's probably fifty of them now, but that
showed all seven of them, and what percentage of the
cost basis of AT and D was allocated Oh, what

(01:05:30):
a mess. What a mess. But the third thing that's
that's of concern to Google is dropping ad revenue with
a slowing economy. So those are the three things that
are And if you can look at those three things
and say they're all bunk, then the stock cheap and
you want to buy it.

Speaker 3 (01:05:47):
Yeah, because if you don't, you didn't add anything in
there about quantum No, where is googling and being five
to ten years? Yeah, And when you're an investor thinking
in a ten plus year investment horizon, which is probably
anyone below the age of fifty for the most part,
if you can get your hands to Google, might be
a bad time to do it on a ten year horizon, right.

Speaker 2 (01:06:08):
And again, we don't recommend stocks because we don't know
your investment objective, we don't know your risk tolerance. But
if you want to give us a call, we can
talk about that. We can run you through some things
and see if that's a good fit for you. I
was interested on Monday to see with the announcement of
the pause in the tariffs, which stocks benefited the most.
And a couple of things jumped out at me. Our Age,

(01:06:32):
which is the former restoration hardware luxury furniture imported a
lot of it from China. Jump seventeen percent, Best Buy,
which gets a lot of electronics from China to ten percent.
Williams Sonoma another company that does a lot of business
with China eleven percent.

Speaker 3 (01:06:47):
What are these over time frames?

Speaker 2 (01:06:49):
That day one day?

Speaker 3 (01:06:52):
On what day?

Speaker 2 (01:06:53):
Monday?

Speaker 1 (01:06:53):
Monday?

Speaker 2 (01:06:54):
On Monday Monday, Yeah, US listed Chinese shares rally casino
operators that have China's exposure rallied.

Speaker 4 (01:07:01):
Which one is a good one? Uh, Lululemon they cut
a lot of steam. They got I think ten percent
pop that day.

Speaker 2 (01:07:06):
Yeah, that would be another one's channing. I saw him
a bunch of double digit pops. I just happened to
pick out a few of that. Yeah, Boying, you know
Trump was over in Saudi Arabia got six hundred billion
dollars from the Saudis.

Speaker 3 (01:07:18):
Boying and always been killing it. We were talking on
this show for a while about how low it's been
trading almost pre pandemic loads. For sure. It was that Yeah,
and uh yeah, they got some big deals inked with
the Saudis, and it looks like Raytheon also got their
first UH defense missile system being sold to Katar Lockheed

(01:07:39):
got some Missuh jets they're making for i mean the
whole defense space. On that day that Trump was speaking
in UAE to the whole people, to all the people,
a lot of deals were struck, but it looks like
the defense industry was the biggest beneficiary of that entire thing,
because the big reason Saudi wanted to invest is so
we get some military support from US. I mean, they

(01:08:00):
love the idea of we have the best military. Obviously,
it's why we can get away with the things we
get away with. That's why we can print so much money.
Don't forget people, so we always have to fund the
defense first. Everyone's like, what backs the dollar. It's not gold,
it's not it's not the printer. It's the military. It's
as long as we.

Speaker 2 (01:08:17):
Can keep countries the military in the world good, right, exactly,
you'll be good. Yeah, And you're you're right. Boying hit
a new fifty two week high. Ge Aero Space hit
a new fifty two week high. I think hit a
new fifty Also hit a hit IBM, IBM sleepy sweety
IBM new all time high. Yeah, all time also all

(01:08:41):
time Yeah.

Speaker 3 (01:08:43):
A company that we've been talking about for a while
on the show, is like, we've just been looking at
it as a super cheap was fsl R the first Solar.

Speaker 2 (01:08:50):
Staff it's been so amazing the last week or so, and.

Speaker 3 (01:08:53):
Then the last week it just absolutely took off. Only
there was a big an executive order that Trump signed
that helped f A clar up significantly and that's why
they jumped big on Tuesday.

Speaker 1 (01:09:03):
He is an.

Speaker 3 (01:09:04):
Executive essentially, an executive order says any Chinese type of
solar panels are gonna get hit hard with terraffs, but
because of f s larg's position being regionally made for
the most part, obviously we've heard about the couple factories
that have internationally, but for the most part, they're gonna
kill it.

Speaker 4 (01:09:20):
Was that it that since the sucked flying the executive order, Yeah.

Speaker 2 (01:09:23):
That was part of it. And then that same day,
Wolf Research came out and said that they they think
for ten billion dollars that the First Solar will gain
from these clean energy credits credits amazing ten billion dollars.
One of the stocks that has participated early in the
week but then went flat as Apple again one of

(01:09:45):
the worst performing Dove stocks. They're kind of between a
rock and a hard place. Trump is insisting on production
in the United States, and of course China to a peace.
Trump has been excuse me, Apple to a peace. Trump
has been moving production from China ty India.

Speaker 4 (01:10:00):
Well, we thought they were in bed together, right.

Speaker 2 (01:10:02):
And and Trump yeah, and Trump said, now that's not
going to work. You got to bring some of that
to productive, you know. And if you bring it to
the US, you've got increased labor costs. You've got the unavailable,
unavailability of workers. Like Taiwan's Semiconductor found not a lot
of people willing to go into factories and assembles stuff
in this country. You know, We're just not a country that.

Speaker 1 (01:10:22):
Works like that.

Speaker 3 (01:10:23):
No, we're not assembly line workers.

Speaker 2 (01:10:25):
And the cost of shipping. Almost all of their parts
are made in Asia. And so if you even if
you build an assembly plant here in the United States,
you've got the people, costs shipping. And your iPhone just doubled,
doubled in price. So Apple on Thursday and Friday, with
the market continuing to explode higher, Apple did absolutely nothing.

(01:10:49):
I think that I think they probably have a little
bit of a short term weight on them over over
this issue, don't you guess yeah.

Speaker 3 (01:10:57):
I mean it's not just the iPhone. Obviously they're going
to three do everything watch that, you know, there's all that.

Speaker 2 (01:11:03):
I mean, they're in the bottom two or three performing
stocks in the Dow for the year. And you say, well,
you always want to buy the older performers. Would you
buy Apple?

Speaker 3 (01:11:12):
I want it. And the problem I had with Apple
still is just how expensive it is. I mean, it's
not it's you know, it's yeah, it's traded off its
all time eyes, but it's not cheap. You think it's
still thirty three on the pe. So until I see
it in below twenty five, I'm not like, oh, this
is a screaming buy. Like you said, there's enough to
be worried about where it could easily drop another ten percent. Now,

(01:11:34):
I think it gets the benefit of the doubt because
it's such a big company that if the market keeps
going higher, it'll kind of drift higher. But I don't
think it explodes high until this resolution is found.

Speaker 2 (01:11:43):
I think it's the fifty two week clows down around
one somewhere in se two. That would be a good
boy if I get If this, uh, if these issues
cause it to drop down into that area, I think
it's it. It's pretty attractive, but it would be expensive,
but it's still pretty.

Speaker 3 (01:11:59):
Truck like Google, Google over Apple.

Speaker 2 (01:12:01):
Right now, I'm with you. We'll be back right after
this break. Thanks again for joining us on the Money
Matter Show. Good morning, once again, this is the Money
Matter Show. Dave Surewood here with Dean Greenberg. Joan Greenberg
is out today. I've got Sebastian Borshini and Todd Click Jr.

Speaker 3 (01:12:16):
This week we had Navidia and AMD also benefiting quite significantly.
I mean, the whole semiconductor space obviously had a really
good week, but the Navidian A m D are kind
of in the spotlight because those CEOs are always in
the big events. And you saw the na Vidi CEO
and am D CEO shake the hands of the Trump
and Ue during the spot We also saw Palanteer CEO there.

(01:12:37):
We saw Sam Altman, the Open AI guy.

Speaker 2 (01:12:43):
You know.

Speaker 3 (01:12:43):
Obviously Elon was there too, So some big, powerful names,
and that's something that obviously is just the striking difference
between Trump and Biden is the deals and also the
respect factor, but just the prestige of that event, I mean,
seeing all those people making big decisions around the world,
getting together and actually having meaningful conversation, something that I

(01:13:08):
don't feel like we've any of us has seen over
the last four years.

Speaker 2 (01:13:11):
I agree with the difference between the two is just.

Speaker 3 (01:13:15):
Dramatic, and I think the market's responding to that. With
the ten years still at four to five, we still
got a problem with that long term, and I think
Trump knows that. He was very happy and even touting
the fact that when the tenure got down to the
four low four level, he was bringing it up and
it quickly reversed course and it's back to the four fives.

(01:13:36):
With that four or five level, comes to the fact
that annuities are still relatively strong the magas. You can
still get around a five point five to five percent
guaranteed for three to seven years. If you want safe money,
that's a place to look. Uh, there's also guaranteed income,
right we obviously there's When you hear about bonuses, they're
normally around these guaranteed income type of products. So if

(01:13:58):
you ever have a question about a bone or have
a question about how annuity works, just give us a call.
We'll let you know how it works. We give it truly.
What we like to do now is look at fee
based annuities. We think fee based annuities are the way
to go for the future of our industry. It's more
like of how we're managing current investment accounts. It's fee based,
meaning if the account goes down in value, I make

(01:14:20):
less money and there's not a huge upfront commission that
I receive, meaning that there's an actual incentive for me
to have a long term relationship with the client instead
of just being a transactional one. So having these annuities
be cheaper for the insurance company that makes them allows
them to make a better product for the end user,
the client, So it actually helps the client get more

(01:14:40):
money than they otherwise would with a commission annuity. So
you know, me and Dave, we've been pretty surprised on
some of the annual income amounts that you can get
out of these products. So if you are kind of
on the fence and whether or not you should see
in it, you've seen bad things about annuities, I say,
give us a chance to explain these new ones, because
they're not as fee ridden as the commission ones that

(01:15:01):
you're really used to seeing in the past.

Speaker 2 (01:15:03):
Right the change instructure, Greenberg Financial went from a broker
dealer to a registered investment advisor, which essentially we went
from a firm that could do commission business and fee
business to a all fee firm. And so the annuities
that we are able to provide now are all fee based,
and the difference in cost between those and the broker

(01:15:26):
dealer side are dramatic. So if you're talking to anyone
about an annuity, give us a call. Tell us what
you're doing. We saw one the other day that we
looked at that we said, yeah, that looks like a
reasonable deal. Go ahead and go with that. Saw one
on Friday where the clients had been put into a

(01:15:48):
fourteen year, ten ten year annuity, five hundred thousand dollars
into a ten year an annuity with ten years worth
of penalties and a fixed interest rate of two and
a half percent ten years. They're getting two and a
half percent. Now, you would have bought that back when
rates were down. We're low, right, but I promise you
that somebody got paid at least a ten percent commission,

(01:16:11):
you know, a fifty thousand dollars commission to sell them
that product, which is which was horrible. So please be
careful out there.

Speaker 3 (01:16:19):
And when we offer the annuity, we like almost always
to do the financial plan first. Very rarely are we
just going to do annuity without understanding the whole picture,
because we have to understand the income, We have to
understand your entire liquid portfolio. We don't like to put
any time, really more than fifty percent of your portfolio
in an annuity because there are you know, surrender penalties

(01:16:42):
that you could face if you need more than what
you were designed to get out of them. So there's
a lot of things we have to follow. But with
the with the plan, we can decide do you even
need an annuity? Can we just supplement your income with
a traditional investment portfolio and not have to go through
any of the fees of the end it because there's
still going to be thieves, You're still going to give
up some type of return for the word guarantee. That's

(01:17:06):
just always there's no free lunch in this market, in
this world. But if you need that word, we can
find the best products for you.

Speaker 2 (01:17:12):
And you guys are still doing the financial plans. I
see one, two, three of them every single day in here,
literally hundreds of people taking advantage of the completely free
financial plan that many many firms charge a lot of
money for I know that. On Friday, Todd, you and
I said in on one that where the people had

(01:17:35):
an annuity with a six percent penalty and they're paying
fifteen percent on a car loan because they have their credit.
Wasn't that great? We said, take the six percent penalty,
pay off the fifteen percent car loan. Duh, pretty easy
and something. And I said, why haven't you done that?

(01:17:57):
And they said, because no one's ever said to do that.
That's a real good good deal there. They were getting
two percent on the annuity, so they're going to save
that thirteen percent difference and they pay a six percent
penalty to get rid of that thirteen percent different So
nice seven percent win on that money. So those are

(01:18:19):
kind of some of the things I've had. I've sat
through other ones where you've said to people you need
to do a Roth conversion. Here. I've had clients that
transferred in that should have done a Roth conversion. They
had a couple of windows to do Roth conversions. They
didn't do them because no one had ever mentioned them.
These are the kind of things that come up in

(01:18:40):
these financial plans that you never even think about, that
that if you haven't done it. Free financial plan, take
advantage of it. It's really a cool deal.

Speaker 1 (01:18:52):
Yeah.

Speaker 3 (01:18:52):
I had a client that was coming in here where
I was looking at his income. I was like, why
do you have such high income showing up on the books.
And then he's like, actually, it just came down this
last year because I'm taking a little bit more a
little less out of my iras and I'm starting to
use my cash value life insurance policies. And I was like, oh,
that's perfect. I mean, that makes sense that you would
be using cash value life because it's bringing down your

(01:19:12):
taxable income on paper, so you're not going to get
tax as much, giving some room to possibly do some
roth conversions. That also if you don't do any wroth conversions,
or you can just bring down your IRMA, you know,
because every time you show higher income, you're going to
be impacting your ERMA brackets on Medicare and IRMA. For
those who don't know, is inflation something factor, but it's

(01:19:34):
it's essentially saying it's an income related factor. And what
it's doing is I think the base Medicare is one
ninety four per person, it can go up to five
hundred a little over five hundred per person if you're
in the top income brackets. So managing how much income
you're showing up on the books is very important in
retirement because there's a two year look back that Medicare does.

(01:19:56):
So what we're able to do with this guy was saying, hey,
let's actually take money from the cash relat life insurance
loan against it. IRS does not tax loans as income,
which then allows you to do some rock conversions, freeze
up taxable income, and you don't have to do as
much to be in the next ERMA bracket. So there's
a lot of creative things to do strategies that eventually
also help the next generation because the idea is to

(01:20:18):
get as much money into the WROTH buckets and the
taxable accounts because they'll get a step up in basis,
they'll get tax free transfer and the WROTH. But the
kind of the worst account to give in my opinion,
almost would be the traditional IRA because especially if I mean,
think about your your daughter doing pretty well, Dave, if
she just gets your traditional IRA, all of a sudden,

(01:20:40):
she has to take that income, right yeah, and then
you you don't get a choice.

Speaker 2 (01:20:44):
You got to take it in ten years, and.

Speaker 3 (01:20:46):
Then what if she's in a high income brack? Yeah,
what are you going to do?

Speaker 1 (01:20:49):
So?

Speaker 3 (01:20:49):
I mean sometimes even looking at the idea of if
if you were in a low income bracket, does it
make sense for you to pay the taxes now do
the conversion instead of having the air that might be
in the thirty six percent bracket already?

Speaker 2 (01:21:02):
Yeah? I think that's it. And the point of this
is that the financial plan that you guys provide for
free is very sophisticated. It has a lot of moving parts.
It uncovers a lot of interesting things that people don't
think about. And if you haven't done it, if you've
done it, I think you probably would agree with me.

(01:21:23):
If you haven't done it, please take advantage of it.
It's for a limited time only the rest of our lives, right, yeah,
how long? I think GIN will probably do it as
long as we can.

Speaker 3 (01:21:33):
So, you know, something else I think I'm looking at
with investment allocations here is part of the diversitify case.
Part of our model is a small cap index. The
small cap index is still sixteen point seven percent off.
It's high. Where the ECO weight is four point four,
the SMP only three point one Nasdak only four point nine.

(01:21:53):
Everything is under pretty much five percent off is all
the time high except Russell two thousand. The echo weighted
it is sixteen point seven off, so quite a significant
divergence there. Small caps have not been participating in this
rally that we've seen over the back half of April
and early May. So what do you what are you
seeing there, Dave?

Speaker 2 (01:22:12):
I think it's a small camp is always is always
going to be the last. It's kind of like a
rental property, I'm sorry, a vacation home. A vacation home
is always going to be the last one to go
up when the market rallies and the first one to
come down when the market starts to weaken. And that's
the Russell. Russell is a vacation property.

Speaker 3 (01:22:31):
And the funny thing about the Russell for those who
don't know, is, if I'm not mistaken, it would have
a higher growth rate than the S and P. It
should be around twelve percent to ten percent smps. So
it's a it's a more volatile index. The reason being
is you got to think about companies like Netflix fifteen
years ago, sure, and no one really believed in them.
They were like, why would you invest the Netflix Blockbuster

(01:22:53):
seems just fun.

Speaker 2 (01:22:54):
Smaller companies that can double or go.

Speaker 3 (01:22:56):
Out of Spotify a couple, you know, think about it. Right,
So those companies are gonna have higher growth rates, but
they're gonna have a lot higher volatility too, because when
the market isn't bad, there's a quite high significant chance
that they're not gonna make it.

Speaker 2 (01:23:09):
Something we talked about last week was Weymo. We talked
about alphabet self driving cars using the Jaguar eye Pace.
I did not know that all of the weymore cars
eye paces, and last week we learned that they're going
to manufacture another two thousand of those vehicles in a
new plant in Mesa this year. And you know, Phoenix

(01:23:31):
is getting so much manufacturing it's just amazing.

Speaker 3 (01:23:34):
They better have a lot of assembly line workers to go.

Speaker 2 (01:23:36):
I don't, yeah exactly, I don't know where all those
But the thought crossed my mind, what's just going to
do to Tesla's robo taxi? Right?

Speaker 3 (01:23:45):
And that is that like a competitor.

Speaker 2 (01:23:48):
It's not really Yeah, And that's the one thing I
wanted to bring up. It's not because Waymo's not going
to sell these to the public as a whole different
business model.

Speaker 3 (01:23:56):
What do you mean, So it's a public question. Not
they're going to just be a a ride sharing service.

Speaker 2 (01:24:02):
That's what they do, right, They're not going to sell
these vehicles to the public like Tesla is.

Speaker 3 (01:24:07):
But yeah, but robot taxi, the idea of is you
can sell your car to the public.

Speaker 2 (01:24:12):
A different business model one of them's.

Speaker 1 (01:24:14):
Yeah.

Speaker 3 (01:24:15):
If I'm if I'm someone who wants to take a
driverless car, I can either pick a Tesla driverless car
or the Waimo driverless car.

Speaker 2 (01:24:22):
And with that we'll close this segment. We'll be back
with the final segment of The Money Matter Show.

Speaker 4 (01:24:27):
Welcome back to the Money Matter Show. My name is
Sebastian Borsini. I'm here with David Sherwood and Todd click Junior.
On the last segment, we were talking a little bit
about these way Moo autonomous vehicles and same thing with
the Tesla vehicles. Another interesting ride sharing program and it's
not gonna be it is ride sharing Archer Aviation. Have
you guys heard about that? About that this week?

Speaker 2 (01:24:47):
We have.

Speaker 4 (01:24:49):
On the week just because they came out and so
that they're going to cut a deal with the US
Olympics to be the electric taxi, the electric air taxi
of the Olympic Games, for LA twenty whatever.

Speaker 2 (01:25:03):
It's every four years, gonna be gonna be the electric
air official electric air taxi.

Speaker 4 (01:25:08):
Right, So then then you start then you start to
then you start to think about the small cap conversation
that Todd was talking about. Why would I buy Netflix
when best buy or when what is.

Speaker 3 (01:25:19):
It larger best buy?

Speaker 4 (01:25:21):
Or Netflix when blocks just fine? Why would I buy
this electric vehicle electric air taxi company? Why doesn't make sense?

Speaker 1 (01:25:33):
Right now?

Speaker 2 (01:25:34):
Well?

Speaker 3 (01:25:35):
Yeah, I mean every time I think of that, I
just think of what Elon said and the reason he
stopped with the uh flying cars. As he says, it's
really annoying to hear you ever heard of drone? Oh yeah, yeah,
So imagine a drone like ten times to sid Yeah,
He's like that'd be really annoying. And then imagine like

(01:25:55):
a lot of them in the sky. No, Like, so
I was just like, yeah, that's a good point. You live,
you would would not want to live there, I don't guess.
I don't think they even if the city approves it,
quickly unapprove it, if you put it that way.

Speaker 4 (01:26:08):
Well, they're supposed to be super quiet is what Archer
Aviation says.

Speaker 2 (01:26:12):
Well, it would have to be. It would have to because,
like Elion said, if there is noisy to drone and
then times ten and you put you know, six of
them up, there might.

Speaker 4 (01:26:21):
Good In the Russell two thousand, the small cap index,
that is the type of company that you would see
within that index that you don't know that if it's
going to be profitable or not in the next ten
fifteen years. You don't even know if it's going to
be around, but it could be.

Speaker 2 (01:26:34):
Speaking of speaking of what could be around, how about Starbucks.
Did you see the news last week about China.

Speaker 4 (01:26:42):
No, I've just been seeing a bunch of strike stuff
with them.

Speaker 3 (01:26:45):
Yeah.

Speaker 2 (01:26:45):
Wow, they've got yeah, they got some uniform issues, right,
some of their.

Speaker 4 (01:26:48):
Employees title employees.

Speaker 2 (01:26:50):
Right. Yeah. The interesting part about that, though, is is
is Starbucks they're twenty five percent off the high I
really like Brian Nichols. He has been successful everything starch
just turn to gold. He has this ability now to
go back to his former companies and hand pick highly
qualified people to come to Starbucks and work for him.

(01:27:12):
So he's in a really neat spot to try to
turn this thing around. The one thing I was concerned
about when they first announced him as CEO. The only
thing actually I was concerned about is he has no
international experience with Chipotle, none and was Taco Bell I
think was before that. They came out this week and

(01:27:33):
they said that they're reaching out to private equity firms,
tech companies and others about selling a portion of their
China business to someone else. So he's want he's wanting
to have China be a less be less of an
issue for him. You know, China has been ever since

(01:27:54):
they moved there, and China had become at one point
had become their biggest exposure was in China. They had
more stores in China than in the United States. Then
they were opening up one every nine hours something like that.
I'm remembering this from a year or two ago. Won
every nine hours in China. Well, of course, the Chinese
economy went south with the pandemic. They did a horrible

(01:28:16):
job of coming out of the pandemic. Now they have
all kinds of competition over there. You've got the trade
wars going back and forth. It's a difficult place to
do business. And Starbucks unfortunately has has big exposure there.
Dick's Sporting Goods. Did you see what they did something

(01:28:37):
that many of their investors think was really really stupid
foot Locker. They bought foot Locker before foot Locker could
go out of business.

Speaker 3 (01:28:46):
And paid a premium for it.

Speaker 2 (01:28:48):
They paid two point four billion dollars for a company
that many people believe was going out of business.

Speaker 3 (01:28:55):
Well, you know what I think is also funny is
they put up a ten year chart of dick Sporting's
Goods against Nike, Okay, and I was very surprised Dick's
Sporting Goods.

Speaker 2 (01:29:04):
Has killed, oh yeah, dramatically.

Speaker 3 (01:29:06):
And then you're thinking, it's like, like Dick's though sells
like Nike. That's probably like one of their biggest brands
that they sell, right all it's like, how did like
they get the product from Nike? Like how are they
doing so much better because they you know, no, it's
not just shoes though. I mean, obviously Nike has a
gauntlet of things. But it was just very interesting to

(01:29:29):
see how bad Nike has done at selling things because
they should have done just as fine. They could have
become a sporting goods store over the last ten years Nike. Yeah,
I mean, if you just think and that's why I
think it's just like missed opportunities of businesses three times.

Speaker 1 (01:29:42):
But in what way?

Speaker 4 (01:29:43):
Because if I'm thinking, Okay, I'm gonna go take my kid.

Speaker 3 (01:29:46):
They took away, they took it. They used to have golf,
they took that away. They used to have other things.
They keep taking it away. Why would they take it
buying a Nike baseball bat. I'm not buying a Nike
baseball glove. I'm not buying Nike.

Speaker 1 (01:29:57):
I don't know. Whatever.

Speaker 3 (01:29:58):
Yeah, but you would have.

Speaker 2 (01:30:01):
So you tried a lot of different things, didn't they.

Speaker 3 (01:30:04):
Well, they never had a sporting goods store. They always
had outlets. True, they always had clothing stores. And I
feel like if they truly leaned into their sports the
way Dick's Sporting Goods did, they would have been doing
just fine. But you're right on a fab basis where
you're just relying on clothing and now the biggest thing
is shoes. It's a very fashion related business.

Speaker 2 (01:30:26):
Big change last weekend the ipo market, which has been
kind of laying dead for the last year and a half.
There have not been a lot of successful IPOs. When
they brought out e Toro E Toro is essentially the
Israeli version of Robin Hood.

Speaker 3 (01:30:44):
Yeah, you could do a little cooler things with it, though.
You can do some copy trading, which is interesting, and
they've been around for a while, a little big into
the crypto space too. I'd expect that to get some
attention from the memes space. So be careful if you
see that dock do anything crazy. Don't just get into it.

Speaker 2 (01:31:02):
But yeah, that could become meme stock. Yeah, it's after
the IPO which is which is kind of gave the
IPO market a little kick in the behind, if you will, uh,
forty percent higher than where it was where it opened,
I mean price, I have no idea to I'll say
it was ten dollars. Let's say it one hundred dollars.
Who cares about forty percent? I think it was around

(01:31:25):
fifty five, That's what I want to say. But that's
gonna that should bode well for some of these major
underwriters Morgan Stanley Goldman's acts should it should be good
for them that the IPO market is has woken up.
Did you see Doximity? Doximity is faithbook for doctors. I
don't know if you guys know about this, but it's

(01:31:46):
for medical professional. It's a kind of a faithbook for
medical present. It was already down thirty percent on the
ear lost another twenty percent at the open on Friday
after they said, Hey, business is not working out real
well for us.

Speaker 4 (01:31:58):
We're getting a new addition into the S and P
five hundred Yes, coin based cryptos change exchange operator. It's
going to be replacing Discover Financial Services.

Speaker 2 (01:32:06):
Yep.

Speaker 3 (01:32:07):
I think you might get an all time high. I
had a bitcoin next like this month.

Speaker 2 (01:32:12):
Oh this month? Yeah, oh boy, that's a bold call.

Speaker 3 (01:32:15):
Yeah, I think it is. But I'm feeling it seeing it.

Speaker 2 (01:32:19):
We'll see, because it's kind of it's kind of gone
flat here in the last a week or so. Yeah,
I think they're after a big spike. Hire you're feeling,
You're feeling it, you're feeling love.

Speaker 3 (01:32:30):
One ten, we'll see.

Speaker 2 (01:32:32):
Uh.

Speaker 3 (01:32:33):
One O waits the all time?

Speaker 2 (01:32:34):
One O waits the all time. I think we're close
one four on Friday or not didn't close it was
around one four, Okay, we'll see, we'll see. You know,
looking at your phone, it's already one ten, are you.

Speaker 3 (01:32:44):
No, it's not one tent already. But what I do
want to know is do you remember when we asked
about the S and P, like we're going to be
at fifty three or fifty nine.

Speaker 2 (01:32:53):
We said we were at fifty five, and I asked
whether we'd be at six or five first, and Sebastian
and I both said five, and you and Dealing both
at six, and you and Dylan are right, and Sebastian
I wrong. I mean you and your point. Yeah, if

(01:33:15):
you want a business where you're never wrong, this is
not it right, this is not the business.

Speaker 3 (01:33:20):
Well you're never right either.

Speaker 2 (01:33:21):
Now, well you can't be right every now and then. Well,
you're never always right, and you're lucky. Like we bought
Microsoft at the at at a five year low on
like March of twenty twenty. It's like, okay, that was
pretty lucky. And that literally was just luck. The Coinbase
thing was interesting. Coinbase jumped twenty four percent on Tuesday
on news that they'll be out of the S and

(01:33:43):
P like Sebastian said. However, on Thursday, the company confirmed
an SEC investigation and it dropped seven percent, only to
rebound seven percent on Friday. So it has been all
over the place. I think my biggest question with coinbase
is with the explosion higher in crypto this year, how

(01:34:07):
was coinbased down sixteen percent?

Speaker 3 (01:34:10):
I try to tell this to many people before, about
how coinbase is not a proxy for the big coin
or crypto market.

Speaker 2 (01:34:19):
Okay, still talk to me about it.

Speaker 3 (01:34:21):
I don't. I think it's as if you're trying to
say the stock market went up and the New York stock,
the Nasdaq stock that you can buy on the stock market,
should have gone up the same amount.

Speaker 4 (01:34:30):
No, it's the stock market went up and Robinhood didn't.

Speaker 1 (01:34:32):
No.

Speaker 3 (01:34:32):
Nasdak is a literal stock, the NASDAK market that we
all talk about. You can buy the Nasdak. It's a company.
But associating like it's gonna go one for one? Is
it a crazy philosophy to think about? It's an exchange
and then you have the actual underlying asset. An exchange
just helps you buy an asset. They make they make

(01:34:53):
fees on They don't make a lot of money on it. Yeah,
they make a lot of money because so many people
are doing it, so all the masses. If we ten
x the crypto community, yes, coin base is going to benefit.
But another thing that's gonna be really hard on coin
base in all cryptos going forward. Crypto exchanges is what
happens when you run out of bitcoin to buy, then
you have to ask the miners, and what if the
miners start charging your premiums?

Speaker 4 (01:35:14):
I'm correct me if I'm wrong, But if I'm a
super big bitcoin advocate, I'm probably not owning my bitcoin
through coin base. I'm probably gonna own it.

Speaker 3 (01:35:23):
If you're a true bitcoiner, you would not hold your
bitcoin on exchange because you don't trust them.

Speaker 2 (01:35:28):
Yeah, I get that, it's yeah, I mean absolutely.

Speaker 3 (01:35:31):
Look at First Republic. If you're why would you hold
your cash at a bank if you really don't trust
other people. That's the whole philosophy of bitcoin is not
trusting people to hold your government money or trust the
government to make decisions to not debase your money.

Speaker 2 (01:35:44):
So it doesn't. So the coin base is not necessarily
uh shadow crypto.

Speaker 3 (01:35:49):
No, I would not say that micro strategy though that
would be the better shadow of bitcoin.

Speaker 2 (01:35:53):
All right, guys, well, we appreciate you joining this ol
enough sitting around time to go in the gym now
and uh, we don't want to be how healthy and
we all want to be happy and we all want
to be healthy, including.

Speaker 3 (01:36:03):
Now we're trying to be.

Speaker 2 (01:36:05):
Yeah, and a Greenberg Financial where we're really trying to
be is profitable. See you next week.

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