Money Matters: Inauguration Insights and Market Moves Ahead of Trump's First 100 Days

Episode Transcript
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Speaker 1 (00:00):
Good morning everybody.

Speaker 2 (00:01):
It's that time, Sunday morning, eight o'clock right here, seven
to ninety okns T. This is Dean Greenberg with the
Money Matter Show. We're going to try to talk to
you about what's going on, try to help you out
and then give you some insight.

Speaker 1 (00:15):
It probably will help you get through.

Speaker 2 (00:18):
So, as you know, the markets went down this week
again and we were looking for this.

Speaker 1 (00:25):
There's only down two percent. Okay, it's a lot and you.

Speaker 2 (00:28):
Lose money, but this is just the what you need
in this type of volatility. If you remember the last
couple of shows we talked about volatility, we talked about
the market's probably giving us a decline, mitigate your risk,
have cash on the side, cut back some positions, and wait.
Patience is very, very, very important. So what do I

(00:51):
think on a short term basis? Right now, on a
short term basis, I think we probably have a maybe
a little bit more ago, maybe not, with a little bounce,
and then fall off again into the end of January
and until February.

Speaker 1 (01:03):
And I can see us putting it a.

Speaker 2 (01:06):
Bottom at a lower place in sometime mid February to
end of February and start working a way out back
into March, in April and all. So look for opportunities
on a decline, but don't stop doing it yet. If
you haven't raised any money, if you haven't done anything,
you're going to have an opportunity here. I think over

(01:26):
the next maybe few trading days or whatever, this bounce occurs,
but it's going to be a lower high, and then
we're going to make it lower low, and then somewhere
in there we'll find a pattern to buy what is
creating this Well, on Friday, the job market came out
and said two hundred and I think it was fifty
nine thousand jobs, a lot more than anybody expected. And

(01:49):
it's a hot economy, which tells you what. The Fed
doesn't have to lower rates. In fact, people are now
concerned they might have to raise rate because we will
have inflation. We talked about this, We talked about how
the why the Fed had lower rates before was beyond
our imagination. We didn't understand it. We said that the

(02:11):
markets aren't going to like the fact that if they
go start having to go the other way. And the
markets were telling you by interest rates, you saw them
creeping up every time they Fed lower the rates that
it was not the right thing to do, but that's
what they did, and that's the scenario or in and
now we have to deal with it. So they if
we stay in this scenario, we're gonna have bounces, but

(02:33):
the markets are gonna go lower with the anticipation of
having to maybe low raise rates. The other confusion that's
gonna be in there is when Trump comes in, you're
still hearing about tariffs, You're hearing about this and having
about that. You're going to see a ninety one hundred
day plan. You're going to see it being very aggressive,
and you're going to see the other side come out
and say this is inflationary, this is this, this is crazy.
This kid is not gonna work. And that's gonna spook

(02:56):
the markets again. They weren't worried about Biden's inflation, but
they're worried about what Trump might happen or whatever. But
I'd rather have a business person not only in the
White House, but in the Cabinet and every place else,
billionaires who people don't want to talk about. They're making
decisions on how we're going to fix this. We don't
want to kill the economy. We just want to get

(03:17):
inflation down. Well, it's real simple. You know how you
get inflation down, demand and supply. You get more of
a supply, you get equal to the demand. Prices stop
going up. Eventually, prices start coming down. You stop raising
minimum wages all over the place, You stop having to

(03:38):
raise prices at every time. You turn around, and prices
come down. We need a pause here so earnings can
catch up. Your social security even though they've given you
a cola, costs of living increase. Okay, guess what, it's
not keeping up with the inflation and that we've had

(04:00):
over the last four years, so you're still behind. You
still can't buy the things you need to do. This
will be fixed, regulations will be fixed. We will get
energy prices down. When this happens, and the markets anticipate this,

(04:21):
that's what make the markets go up to make new
heights again. When the markets fall like this and the
Dow Jones keep falling like this, it's a great time
that you don't have to buy individual stocks by the indexes,
especially the big stocks.

Speaker 1 (04:36):
Like in the Dow Jones. If you don't have an
air to it. You know why.

Speaker 2 (04:40):
And I say this a lot, and I hope it
sticks in the Dow Jones will always go up eventually
and make a new high. The Dow Jones will always
go up and make a new high. And that's the
easiest one to know that would be the case. Why
because when there's stocks that are not performing in the
Dow Jones, what do they do. They removed them and

(05:02):
they bring in the hottest stock that's doing well where
the new economy is like bringing in the video, and
then the Dow Jones will work out well until the
video is no longer working. Remember Ge was in the
Dow Jones forever until they were underperforming and they took

(05:23):
them out and they put somebody else in. Don't be
surprised to see Intel out soon and replace with a
different technomy company that will be there. The Apple was
not always in, all right, Walgreens was in. They took
Walgreens out, they put something else in. The Dow Jones
is just an index. When the index is not performing,

(05:44):
and where there's stocks in the index that are not
performing or the economy is changing, which means those are
the companies that are getting hot, they change what goes
into the Dow and thus when buying comes back in,
the Dow comes up and eventually makes a new high.
So put that in the back of your mind. It's
a great way to know. If I want to have
to see growth and I want to see stuff, you
buy the Dow Jones when he gets knocked down hard.

(06:06):
You know eventually at some time in the future, just
got to wait it out. It'll make a new high
and keep going from there. So with the market's all
down now for the week of almost two percent, that
down one percent now for the year, we haven't had
a lot of trading days. We've been in this about
a week and a half. Let's see where it goes.
I would not be surprised if we see a bounce

(06:29):
in the marketplace. Understand how to mitigate risk. Okay, it's
just not a word. It's something that you have to
look to do. That doesn't mean you don't lose. You
will lose when it's going down, but you will mitigate risk,
which means you don't lose as much. You can buy
puts with your insurance. You can sell calls, which reduces
the amount that you can lose. You can go buy

(06:51):
the inverse funds, you can buy the inverse individual stock funds.
There's a lot of things you can do to hedge
your portfolio, but the biggest and easiest thing to do
is to raise your cash position. If you'd like to
be sixty seventy percent invested, go to fifty, go to
forty five.

Speaker 1 (07:10):
The way, if it falls.

Speaker 2 (07:11):
Down, you got ten twenty thousand percent sitting in cash,
earning four and a half percent or more. Right now,
that you can put the work when the markets fall
and just buy indexes if that's what you want. Does
it take some work, yes, If you don't want to
do the work, it's someone to do it and pay them.
I mean now, fees are so low they average probably

(07:32):
one percent across the board. Some are higher for the
It depends on how much you have. Of course, if
you have over a million, it's a one percent or less.
If it's less than a million, is one in a
quarter one and a half. Depending how much you have,
that's a very small amount of money for someone else
to be able to make these decisions, and you don't
have to worry about it, because what happens is stress

(07:53):
is the worst when the markets go down, because you
start trying to make decisions on something you might not
know about, and if you make the wrong decision. Like
you get out in the market's giralley, you get upset.
If you stay in and the markets go down, you
get upset. But if you don't have to worry about it,
and you know you did your plan, your financial plan,

(08:14):
you're going to be in great shape. And that's why
we've evolved into a family office, a true family office.
Most of the time you hear what a family office is,
it's someone that has money in office and they have
all the people doing their taxes, they're investing, they're planning, alternavent,
you name it to doing it. Well, we've done it

(08:34):
for the smaller investor. You don't need fifty one hundred
a billion dollars to have a family office. We've made
our office a family office. We do the financial planning,
we do the money management, We understand what your risk
tolerance is, and we do it on an individual basis.
We also work with our legal people that do a
state planning, and then we do taxes all out of

(08:57):
our office.

Speaker 1 (09:00):
Out of our office.

Speaker 2 (09:01):
That's the way we wanted to grow the company, and
that's the way we are going to company. And that
gives you the ability to know and trust the people
that you're dealing with and all it is is, you know,
we've had more people come in and do financial plans
that I can believe. I mean, you know, the financial
plans of yesteryear used to be just to go ahead
and do a financial plan, and then they wanted to

(09:23):
sell your protection and insurance and nothing else. The way
we do the financial plan is trying to show you
when your money's going to run out if you keep
spending at a certain level, and what the odds are
for doing that, or if you're not and you're in
great shape, you're never going to run out of money,
and you don't have to worry about the stress. We
get to the point that you don't have to be

(09:44):
stressed out. It's a very important part of what we do.
And then we actually manage it. We don't give it
off to somebody else. We manage it ourselves. We take
the accountability. I've said this for twenty five years. It's
not the person that tells you what to do that
I respect. It's the person that presses the button and

(10:05):
takes accountability for the prices you buy and the prices
you sell and the returns on the account. How you
do it with the people's are risk tolerance involved. Those
are the people I respect in our business. There's tons
of people out there newslat is economists telling you what
they think. We tell you what we think. Whatever I
think doesn't matter. It's how I handle it. Remember, I

(10:28):
think the market's going down, we mitigate risk. If the
market goes up, we're not doing as well. If the
market goes down and we're mitigating risk, we're losing less,
which is great.

Speaker 1 (10:37):
But when do we get out and when do we
turn to go the other way?

Speaker 2 (10:39):
That's on us. A lot of people don't like that pressure.
I don't look at as pressure. I look at it
as what we do. Because of her experience doing this
for managing money for almost forty years, teaching the young
guys how to manage money, building a firm that's a
total team effort, understanding the financial plan, knowing that everybody's

(11:05):
a little bit different, Everyone has a little different risk tolerance,
different goals, different needs.

Speaker 1 (11:11):
That's the trick to the whole thing.

Speaker 2 (11:13):
Knowing that you can make that relationship based on the
people you're dealing with, and that's how we build it.

Speaker 1 (11:18):
This how we built the firm.

Speaker 2 (11:20):
We've built it since nineteen eighty eight right here in Tucson, Arizona,
when I came in and said, I'm going to be
on the other side of that seat. I'm gonna do
something different over that desk, and I'm going to build
a firm, fee based business on what clients want. Be
on the same side as the client, not the broker,
not the broker dealer, not the business. Be on the

(11:41):
same side as the client, which means get rid of commissions.
What do the commissions do? In your mind, It's like, okay,
I got to buy this guy to sell that, and
commissions used to be a lot higher than they are now.
What all commissions do is create a scenario that you
are in a position to benefit. In the person's mind, Okay,

(12:05):
I sold this. If it goes up, why do you
sell it if it goes down? Okay, thank you. If
you buy something, it's what you then you do it.
If you're selling something to buy, that's a double commission.
That's what's on their mind. But if you're doing it
without commission, if you're doing it because the only way
you're going to make money is by fee, you're now
on the same side as the client. If the client's

(12:25):
portfolio grows, your percentage of the fee will grow. If
the percentage of the portfolio goes down, you will see
that go down. Also, that's what happens. Your fee goes down,
the amount of money off the fie goes down if
the portfolio goes down. So you're constantly looking to grow.
When you make a decision as a portfolio manager for

(12:48):
a client, you're making that decision with only one reason
to benefit the client. Because you benefit the client and
the works it benefits you as a firm. That's why
we make decisions, That's why we do what we do,
and that's why at the end of the day, it's
hard for everyone, but we've been able to deal with

(13:08):
it because we know we're doing the right thing.

Speaker 1 (13:10):
When you know you're trying to do.

Speaker 2 (13:11):
The right thing all the time for the client and
you're on the same side as the client, it makes everything,
every allocation, everything we do a lot easier. Do we
lose money, Yeah, of course we can lose money. Everyone
can lose money, But what do you do about it
when it's not going We change, change the portfolio, change
what we're in, mitigate more, mitigate less, change the industries,

(13:34):
change the indexes, change something. Just don't sit there. Everyone
that uses the excuse, well, it always comes back. Don't
worry about it, and haven't done anything, hasn't cut back position,
hasn't raised cash when the market goes down.

Speaker 1 (13:46):
I have a problem with that.

Speaker 2 (13:49):
When the markets are going up and everyone just says, oh,
just sit there, don't worry. What what have you done? Sure,
sometimes it's best not to do anything and it just
keeps going. But there's always opportunities, and the prudent investor knows.
Reduce your allocations. Don't be over allocated in anyone industry
or anyone stock or any anything else. Indexes are fine.

(14:11):
You can have more more in indexes because those are
broad based. S and P five hundred has five hundred stocks.
If you add twenty twenty five thirty percent in the
S and P okay, I can handle that. But there's
also ways to mitigate that risk. And that's what you
have to learn. So as we move forward here, why
am I so, I guess excited about the future when

(14:35):
everyone else is looking how negative there it's going to be.
I'm excited because I know we can fall here, and
I'm out worried about that.

Speaker 1 (14:44):
Other than on a short term basis, because.

Speaker 2 (14:47):
I do believe that the markets over the next three years,
once any decline we have and we have to shake
out here, will do well once we have the new
his plan in plants. And when I say business plan,
I mean the economic plan of the Trump administration. Lowering

(15:08):
taxes is a good thing. Bringing businesses back and giving
them incentive is a good thing. Have a manufacturing grow
in the right way is a good thing. Reducing energy
prices is a good thing. Having an immigration bill is
a good thing. Shutting down the border from illegals coming

(15:31):
across is a good thing. As long as we now
have to put a plan in on how we're going
to bring in people legally and help them benefit the
United States. These are good things getting Reducing the crime
in cities is a good thing, and you know what.

Speaker 1 (15:53):
You get.

Speaker 2 (15:55):
And it's just such a shame that what we're seeing
what's going on in California right now, the fires. I'm
not a fireman, I'm not the first one to tell
you that, but I understand one thing. Talking to people,
there's maintenance that has to be done. If you don't
do the maintenance, then the problems arise. And it's behooves

(16:18):
me not to understand how they don't do the underbrush.
It just makes sense, especially where you know there's some
of these other fires we've had, we know they came
from underbrush. That's called maintenance work. It helps against fires
spreading like the way they've done. I don't get it.

(16:39):
I don't get when they cut back and all they
want to say is climate change. It's class you know,
how is this climate change?

Speaker 1 (16:45):
This fire? This fire was brought on by a dry area?
What dry all the time?

Speaker 3 (16:52):
Right?

Speaker 2 (16:53):
We need to do maintenance too. Everyone has to do it.
There's ways to do things. Does it cost money?

Speaker 1 (16:58):
It does.

Speaker 2 (17:00):
But when you're taking money and you put it in
in areas of sanctuary cities and not doing the things
you need to do to protect the other stuff, this
is what ends up happening, and I don't want to
see it happening anymore.

Speaker 1 (17:11):
You don't shut down the border.

Speaker 2 (17:13):
What happens is we have more and more crime in
the United States if you don't do something on the subways.
But yet you're starting to hit New York with a
nine dollar congestion tax every time you go somewhere downtown.

Speaker 1 (17:29):
That doesn't help.

Speaker 2 (17:30):
People don't want to go on the subways because of
the crime, So they're gonna end up trying to pay
nine dollars and then be all.

Speaker 1 (17:36):
Upset about that.

Speaker 2 (17:38):
There's got to be better solutions than what we look at,
better solutions on how we handle things before things happen.
And we got to stop spending money in stupid ways
and start spending money in the right ways.

Speaker 1 (17:54):
There's a lot of money to be.

Speaker 2 (17:55):
Mayor a lot of jobs to be put out there
that people can make money. We started doing maintenance on underbrush.
Maybe that's not what everybody wants to do, but that's
what we need to do. People gotta stop getting handouts.
People gotta stop giving giving stuff to people that don't
need it, that just want it. The people that need
we have to take care of. We talk about this

(18:17):
all the time. Take care, take care of, take care
of those that are in need. But those that are
not in need, we need to get them educated to
whatever it is.

Speaker 1 (18:27):
We need to increase the way people do trades.

Speaker 3 (18:29):
Now.

Speaker 2 (18:29):
We are so short on trades it's not even funny.
Good plumbers, good electricians, good construction people. We are gonna
have to rebuild California. There southern California. We're gonna have
to rebuild that whole Los Angeles area. We're gonna have
to build Ukraine. We're gonna have to build North Carolina.

(18:50):
We build North Carolina. See where I'm going with this.
If you don't want to go to college, if you
don't want to learn white college stuff, start learning with
your hands and become a trade. If you don't want
to just be a nail banger, become an electrician, become
a plumber. On do something and be mobile. Be mobile

(19:13):
means go where the work is, Go where the work is.
There's gonna be years and years of work to be done.
Not to mention what we're gonna have to do to
our own bridges and highways and tunnels.

Speaker 1 (19:27):
We got to bring them up to speed.

Speaker 2 (19:28):
If we don't, and we've talked about it forever, we
are going to have a disaster and that's gonna be awful.
We know there's weaknesses happening on these bridges. We know
there's weaknesses happening in these tunnels. We have to find
the right money for the right things, and those are
jobs that people need to do and do them correctly.

(19:52):
That helps us grow as a nation. We are so
far behind when we talk about transportation. Of course, some
of these other cities around the world, they are so
far ahead of us. But you know what we can
get there. So there's a lot of reasons. I'm very, very,
very excited about what's gonna happen if we can implement

(20:14):
these things.

Speaker 1 (20:17):
All we want to talk about is tarrists, taris, tariffs.

Speaker 2 (20:20):
Well, you don't what you're seeing the changeover in Canada already,
and all we did was talk about tarifs. If you
don't help us at the border. You've already seen some
happenings in Mexico when we said help us, or you're
gonna have taris because we want help at the border.
There are ways that they're going to do it. Europe
could say all they want. Let me tell you something.

(20:41):
Look at what's happening in Germany. There's problems everywhere there.
Greece had problems, Spain has problems, London, England has problems.
Socialism does not work. We are still number one because
we are the capitalistic country of the world. Curse whatever
you want you want to it cost a couple of pigs.
Then think twice about why you're here. All these people

(21:03):
that say they want to leave and go go, It's okay.
We're bringing people that want to be Americans, that understand
the team effort, that understand will one country, that we
fight for, what we do and how we're going to
build America the right way. There's no reason we can't
bring that back nuclear in the right way. There's no

(21:25):
reason we can't do certain things in the right way
that we haven't done. There's no reason why we can't
drill off shore the right way. Everything has cause and effect.
Everything has cause and effect, and when you're doing things
for one reason, there's something else that's going to happen
on the other way. If we start doing what I
did with my business and put my clients first, and

(21:47):
these politicians start putting the American people first, everyone else
will benefit, not just the American people, but everybody else
around us. The environment will benefit, the people around us
will benefit, Mexico will benefit, Canada will benefit. The world
would benefit when we as America are doing the right things.
Very very important. Now as Trump gets closer and closer,

(22:11):
it makes me just so happy to listen to him
actually be transparent and talk. Whether you like what he
says or how he says it or the way he
says it. I don't care, because at least it was
refreshing to see someone that's going to be our leader

(22:32):
talk to the press for an hour, hour and a half,
two hours, whatever it is, and answer the questions that
he feels should be answered the way he wants to
answer it and tell you to what he thinks.

Speaker 1 (22:44):
You might not like it, but at least you know
where he is.

Speaker 2 (22:47):
He talked more in that one press conference the other
day than Biden and Harris have talked in four years. Okay,
we haven't heard anything from them about what would be
going on, or what would they do, or how they
would make solutions at all, So like you to not.
At least we have a leader who has the qualities

(23:08):
to bring people along, mostly because he's willing to tell
us what he believes, what he thinks, and how he's
going to get it done.

Speaker 3 (23:17):
Now.

Speaker 2 (23:18):
He knows it's going to be a fight in Congress,
and that is one of the reasons he continue wants
to use the power to get them to vote.

Speaker 1 (23:24):
In the right way. Now everyone is going to be
on board with everything.

Speaker 2 (23:27):
We get that, but we have to get things through
and right now it's got to be basically sixty five
seventy percent the right and the thirty and the thirty
thirty five percent give something and the left has to
get some. That's the compromise. Sorry, guys, the right one.
This time, the right gets the majority of the compromise,
but there has to be compromised right across the board.

(23:49):
You don't, You're not going to bring it along. And
what's going to happen is the people kicking and screaming.
As things start turning the way they should, most of
them will come on board the other way. It's a
four year deal right now, which let's give them the
opportunity to shine or not doesn't shine boom, you know
where the votes are going it he shines. Great, We're
gonna have another eight years of getting better and moving forward.

(24:12):
I'm tired of going back and forth. I'm sure you
are too. Money Matter Show. Stay tuned. Remember everything has risk.
Understand your risk before the investing, and we'll be back.
Thank you so much for listening to The Money Matter Show.

Speaker 3 (24:25):
Welcome back. This is the Money Matter Show. Sunday morning.
Here we are a big story of the week. This
was easy this week Los Angeles. Wow. But it's hard
to even imagine being a part of that, although I
over there four or five six times a year, and
I have been babysitting to infants when we received evacuation notification,

(24:50):
So I've been there, done that. What a horrible way
to live. Do you have to be thinking about that?

Speaker 4 (24:58):
Was your daughter affected in anywhere?

Speaker 3 (25:00):
No, she's down in Orange County, which is about seventy
five eighty miles south. But so many homes lost, so
much tragedy, so many of the places that we went
in Santa Monica and Malibu, and they are gone. They're
just gone.

Speaker 5 (25:15):
I mean, if you look at an aerial footage of
Pacific Palisades, it looks like it's just flattened. Believe like
a tornado went through it.

Speaker 3 (25:21):
Just crazy, Yeah, like it was bombed. Somebody said, it
kind of looks a lot like a Ukraine. You know,
if you look at some of those pictures, it's amazing
what happened and how quickly it happened, and how you know,
there's a lot of blame going on. Every everybody wants
we're a country where we want someone to blame, right,
And one person said, Okay, it was their fault, right,

(25:42):
So the mayor of Los Angeles is getting the heat
right now because she was in Ghana. Well, she didn't
ask to go to Ghana. President Biden asked her to
go to Ghana to attend the I get what an inauguration, right,
So it wasn't like she knew this was going to happen,
and so she needed to get out of town. With
that said, she cut the budget of the of the

(26:03):
fire department by several million dollars within the past twelve months.
That's not playing real well right now. But I think
I was saying to my daughter, you could have probably
had five for six or seven times the firefighters that
you had, and it would have made no difference. There's
just nothing you can do when the wind's blown eighty

(26:23):
to one hundred miles an hour, throwing embers all over
the valley. It's just it's chaos, unbelievable. And I don't know.
They will rebuild, it will come back, It'll be it'll
be good. It's going to be really interesting though, to
see what this does to the immigration from California to Arizona.
Remember during the pandemic, they came by the hordes. I

(26:45):
got a feeling that's going to start all over.

Speaker 5 (26:47):
It probably going to and then it's going to be
probably by a lot of people that weren't directly affected
by this, but they're saying, I'm going to get out now.

Speaker 3 (26:54):
Yeah. Yeah, I think it becomes a case of where
is your family safe? But the first immigrant is the
NFL game tonight between the Minnesota Vikings and the Los
Angeles Rams, which is going to be played in Glendale.
And why is it being played in Glendale Because that's
where they're safe.

Speaker 5 (27:15):
And the Cardinals didn't make the playoffs.

Speaker 3 (27:17):
Oh, that's a shocker. I think a bigger story, Dylan
might be that they did make the playoffs, right.

Speaker 5 (27:24):
And nowadays they're good.

Speaker 3 (27:26):
Fifteen years ago, yeah, they had it one year with
Kurt Warner where they actually went to the Super Bowl, right,
But other than that, it's been pretty dire. But anyway,
our hearts are, our prayers are with the people in
Los Angeles and as they rebuild and hopefully the winds
die down and things calm down over there. And probably
the one of the major beneficiaries, of course, from all

(27:49):
of this will be the construction industry. Heard a lot
of talk on Friday about home depot what do you
guys think about that?

Speaker 5 (27:58):
Yeah, home depot lows the all the construction stuff should help.
But I mean it happens a lot if you think,
doesn't happen like this when a hurricane hits in flat
Flats Florida, there's some people do extra good.

Speaker 3 (28:12):
Sure, And you wonder when I see these people recommending
home deeople are home deepo Yeah? Home people right brain
cramped there for men, I was thinking office deep boys off.
When you see something like this, your first thought is, well, boy,
that's a gigantic company located all over the country. Is
that really going to make a major impact on their business?

(28:35):
And my thought would be probably not just what.

Speaker 5 (28:39):
I'm thinking, it's not going to make a huge impact.
The initial thought is exact because you see a huge
disaster and it's all construction base moving forward. But the
hurricane that hit North Carolina, that city got flatten, but
not really. They weren't talking about it then because LA
is bigger. Maybe, but we're.

Speaker 6 (28:56):
Looking at the it t B and the XHB and
it's been selling off for quite a while. So it's
definitely in place that i'd be interested in starting position
in there. But I think the better idea or sector
to think about in relation to this fire is the
kie the insurance ETF. We saw that down two and
a half percent today, which is a pretty big move
for an ETF to make, and the insurance CTF has

(29:17):
been selling off as a whole since it's hit all
time highs. As we know, many insurance companies have increased
their homeowners' policies largely due to some of the I
mean Maui fires, but really California's had fires for a
long time and that's been trickling over to our sector
in Arizona. Some people have been getting their home insurance

(29:38):
quotes that all of a sudden, say that's increased because
they're in this wildfire area. Now we're not even really
known for wildfires, but because of the prevalence in California,
it's becoming a thing on policies here in Arizona. So
you have this initial bad for insurance companies because they
have to pay out from all these claims, right, but

(29:59):
eventually they what do they do? They increase the premiums
that everyone has to help pay for the fact that
they had to pay out all of these So I
think that initial drop in the insurance tiff will eventually
be followed by a lot of increase in premiums, which
woul probably bring it back to another new all time high.

Speaker 3 (30:15):
Kind of a license to print money in it. I mean,
what happened in Florida, Well, a couple of earth a
couple of hurricanes within a twenty four month period, and
all of a sudden, nobody wants to write any insurance
of any kind. I think that's probably what you're going
to see in California, is that if you want to
have homeowners and insurance, it's going to be without fire coverage, right.
You know, yeah, you can get Homebold insurance, you just

(30:35):
won't protect your case of fire. And the state of
Florida actually had to establish their own insurance company to
provide insurance for the people of the state of Florida
because the companies all just said, yeah, that's okay, we're good.
California is a big state. A lot of different topographies
in California. A lot of places in California that have

(30:58):
not been impacted by fire. My wildfire, right, but.

Speaker 6 (31:01):
Those are also more of the northern places that get
a little more For San Diego, there are plenty of
areas around San Diego. I've had really big wildfires in the.

Speaker 3 (31:10):
Last decaejority of California is the inland.

Speaker 6 (31:13):
Well, the reason California has this issue with wildfires is
they do not protect They're a tinder box and they
don't clean up the brush and they let it be
because they're so environmentalists that they say, you can't cut
down any dead trees. Well, dead trees are great fuel
for fire, and you don't do anything with them. Eventually
you're just one tinder box away.

Speaker 3 (31:32):
You know.

Speaker 6 (31:32):
That's the problem. They don't do what they're supposed to do,
and that's what a lot of these reports are coming out.

Speaker 3 (31:38):
It was interesting to watch them as the fires were burning.
Where do you go, Well, the first thing you do
is go okay with these home deeopo, and oh, by
the way, we need to get rid of the utility
the services Los Angeles because that's always that's been one
of the primary people to blame. You know, we want
somebody to blame. So the utility company must have been
something with a wire that's sparked and that set it off,

(32:01):
and who knows, who knows, But we saw that in Paradise, California,
where the utility company became vulnerable. We saw it in
Maui where the utility company Darnia went under Hawaiian and
now we're seeing it in southern California.

Speaker 6 (32:14):
There's also been reports that it's been arson So there's
a lot of investigations on how these things actually got started.
But like you said, also it's it's all over the place,
So whether then all you know, arsonists take advantage of
this opportunity as chaos and then try to start out
within it. There's there's definitely some foul play going on
at this point. You can tell. It's just how sick

(32:36):
would you have to be? There's a lot of sick
people out there, and people like to watch the world burn.

Speaker 3 (32:41):
Yeah, especially when you have fifteen million people.

Speaker 6 (32:43):
Yeah, you're going to have five or six of the
in the fifteen million that are.

Speaker 3 (32:48):
Like angry, angry that can think like that, are angry
about something so like it real or imagined.

Speaker 4 (32:53):
If my house burns down, now I have to file
insurance claim and wait for building permits in order to
start reconstruct. Obviously that's I mean, yeah, what are you
looking at a year, a year, a year out?

Speaker 5 (33:04):
Probably, Yeah, you have to find some place you still
got to contain it too, right. These fires aren't necessarily done.
We'll look contained. There's some that are seventy five percent,
but there's others that are only five percent.

Speaker 3 (33:15):
I think Friday night endo Saturday, the window was supposed
to pick up again. We'll have to see. We may
be reading about this for a few more days.

Speaker 4 (33:23):
Before we go any further. I'm going to do the
disclaimer real quick, go for The show is sponsored by
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(33:45):
the SEC and a member of FINRA and SIPIK. This
is our website at Greenbrik Financial dot com. For some
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for four four nine zero nine.

Speaker 3 (33:54):
Good job.

Speaker 5 (33:55):
Another news in economic way is the jobs report much
hotter than expected. It was coming at two hundred and
fifty six thousand when he expected one hundred and fifty
five thousand. Shut up Friday wasn't very good. And that's
the reason. That's the main reason why, because investors not
think there's less of a chance that the Fed will
cut rates this year or how many rate cuts they

(34:15):
will have.

Speaker 3 (34:16):
So we've been we've been complaining about the rate cuts.
That's the first one.

Speaker 4 (34:22):
This is just last year.

Speaker 3 (34:23):
Too quick, too much. And that's what's happening so far
as is the race cuts have actually reignited inflation to
some extent already, and if defended by the policies of
Trump two point zero if, and of course you never
know because a lot of what he does our trial balloons,
where he sends up a trial balloon, sees kind of
sees how it feels and how people react to it.

(34:45):
So what actually happens in terms of tariffs or increased
prices or that sort of thing is yet to be seen.
But that certainly is on the horizon and coming up
pretty darn fast here. January twentieth, not that far off.
I saw Trump was back in Washington this past week
and had mania with him.

Speaker 5 (35:07):
Big news next to Obama at Jimmy Carter's funeral. They
look buddy, buddy. Yeah, Kamala Harris wasn't too happy.

Speaker 3 (35:15):
Yeah.

Speaker 4 (35:15):
I saw a lot of people left sided. People on
Twitter just getting upset about that, and it's like, come on,
like there, professionals, they can have a conversation next next.

Speaker 3 (35:23):
To each other, because Trump is city next.

Speaker 4 (35:26):
To Obama, should not be talking to Trump.

Speaker 6 (35:29):
The ten year is above that four point seventy five.
That's a big number. It's where you put a lot
of pressure on everything and at this point where at
levels that we haven't seen since October of twenty twenty
three on the ten year.

Speaker 3 (35:40):
Yeah, it's good, it's definitely making it. We'll be back
right after this break. I want to talk a little
bit more about that because it's really important.

Speaker 6 (35:47):
Welcome back to the Money Matter Show. My name is
Todd Glick. I'm here with Dylan Greenberg, Sebastian Borssini, and
David Sherwood. We were talking about rates hitting at the
highest level since they've been since October of twenty twenty three.
The ten year. We actually have a very interesting curve.
It's pretty much steepened across the board. The one years below,
the two, the two years below the five, the five
years below the ten, and I believe in the ten

(36:09):
years below the thirty. So we actually have a perfect
curve now in terms of just the generals, the normal curve,
the way you're supposed to have it. It's not necessarily
super rampy, but it's still kind of flat, but it's
still it's all that is where it needs to be,
but the ten years not where it needs to be.
Because at this point it puts a lot of pressure
on companies, smaller companies for sure, and these next quarter

(36:32):
of earnings reports are going to have a lot of
pressure on them because when you then have guidance being
based on interest rates, all guidance is based on interest
People project out the valuation of a stock a year
into the future, ten years in the future, and that's
how they find their valuations for what they're willing to
pay for. Well, part of that calculation is the benchmark
interest rate, which is the ten year. So every time

(36:53):
the ten year goes up, your valuation for any stock
goes down, actually any asset class goes down. Because you're
measuring a it's the bench benchmark risk free rate. So
the minute that benchmark goes up. It hurts everything across
the board, and normally we see that happen pretty often.
Sometimes you see the market kind of diverge against that rule.

(37:13):
But after a while it has to listen. And when
the market was kind of going up and up in
the back half of twenty four, it finally did listen.
When you know, Jerome Palace said hey, we're not going
to get the rate cuts in twenty five. You guys
are all expected the market finally listen, it's sold off,
and it's been selling off pretty much since then.

Speaker 3 (37:31):
Yeah, we're in an environment right now where good news
is bad news, right because good economic news like we
had on Friday where the jobs report was wow, man,
this economy is hitting all all cylinders. That is not
what they wanted to hear. And I had a client
to email me and say, wait a second, this is
really good news. How is this not good news? Man?
It's not good news because it's pushing putting pressure more

(37:52):
pressure on interest rates which have already risen what about
one hundred and twenty five basis points since they started
cut on the highest level of Todd Houston since twenty.

Speaker 6 (38:02):
Three October twenty three.

Speaker 3 (38:03):
Octumber twenty three yep.

Speaker 4 (38:05):
Really wow, those risky stocks they got crushed, Like I
think about the quantum computing stocks this week.

Speaker 5 (38:10):
Yeah, but they got crushed for other reasons, other reasons
that stuff. Yeah, yeah, it was mainly because the Nvidia
CEO said quantum computing and all that's like fifteen to
thirty years out.

Speaker 4 (38:20):
But not to mention, I mean the companies that aren't profitable,
they higher interest rates, higher cost to borrow.

Speaker 6 (38:26):
Anything that's a risk asset is going to get hurt
when interest rates get increased. So you're talking about bitcoin
and things like that that intrinsically are risky assets. You
can look at a Nasdaq what led the way down
this week? The nas Deck well, also led the way
down the Rustle two thousand, because it's a risky asset class.
Anything with risk is going to be based on interest rates,

(38:46):
and as interest rates go higher, their evaluations have to
come down. It's just how math works.

Speaker 3 (38:51):
Yeah. What a week, bitcoin head. I saw it as
high as one O three. I thowt as low as
ninety one. Thing is moving one hundred and three thousand,
as low as ninety one, and I think it finished
the week around ninety five thousand.

Speaker 6 (39:03):
Yeah, it held it held in its last fibonacci before
it would have gone down to like seventy two, So
it's going to be interesting. Ninety two is a key
level for it to hold in.

Speaker 3 (39:15):
It is, and it really has been holding that a
couple of times.

Speaker 6 (39:17):
It's held it for a couple of times, which is
a good sign. The one interesting sign of the S
and P is it broke a big fibonacci. So what
it does next week is going to be interesting because
it kind of needs a little bit of a of
an increase next week, or if it has another down week,
we'll break another level and then we could be going
to fifty seven hundred. I would say, you're.

Speaker 3 (39:36):
Talking about the S and P.

Speaker 6 (39:37):
S and P five hundred.

Speaker 1 (39:38):
Yeah.

Speaker 3 (39:39):
Well, the interesting part about it is I was looking
at the Dow and it was down over seven hundred
points on Friday, and for the week it was down
seven hundred and ninety four, So I mean it was like,
really to Friday, it was flat pretty much essentially, and
we've ended up the week a down, down one point
nine percent on the Dow, down two point three percent
on the NASDAK. Coming into Friday, we were flat on

(40:00):
the week, so Friday was rough, and Friday was all
about interest rates, Like Todd said, hitting the highest level
since twenty three, mortgage rates up around seven.

Speaker 6 (40:08):
Yeah, six point nine three for a thirty year Freddy
mc mortgage rate. That's someone who puts down twenty percent
and has really good credits. So it's it's higher for
most people. And next week it's going to go even
higher because the thirty the ten year increased this week
and there's always a lack, so it's going to be
in the low sevens even for really good credit people
that put twenty percent downs, which means it's going to
be in the mid sevens for the average person.

Speaker 3 (40:29):
So if you're buying a house right now, let's say
you're one of these California people who has decided I've
had enough, right and they're going to gonna move to Arizona.
You're and you're going to buy a house here, You're
probably want to consider a variable rate mortgage or cash.

Speaker 5 (40:43):
A lot of people paid cash and they didn't have
to worry about the rate, right.

Speaker 6 (40:47):
Their house is worth so much over there.

Speaker 3 (40:49):
Well, that's assuming you were able to buy a house
in California. Most people can't true, you know, so I
was at that was.

Speaker 6 (40:56):
A lot of legacy families. Though there are house down
their house.

Speaker 3 (40:59):
I know. I was at Thanksgiving dinner there were five couples,
all of them rented. Every single one of the lanted. No,
it's owning the house is a real special privilege in California.
And like Yella said, if you do man those. I
had a client moved from Santa Barbara to Tucson, and
I said to her, I said, what why would you move?

(41:22):
Santa Barbara is arguably one of the prettiest places on
the planet, right, why would you move from there to Tucson?
Just curious? And she said, well, a quarter of a
million dollar house we sold for two point three million.
He said, I was able to move here. I bought
myself a seven hundred thousand dollars house in Saddlebrook. I
bought myself a five hundred thousand dollars brand new motor home,

(41:42):
and I've got a million leftover. That's why, you.

Speaker 6 (41:46):
Know, And that was why in the pandemic we saw
the influx of people come here. It wasn't the people
who were renting a California that came here. It was
the people who had the houses in California that came here.

Speaker 3 (41:56):
Yeah, And I don't know now's what difference this makes,
but I would back there to be a pretty good.

Speaker 6 (42:01):
Most people who rent wouldn't entertain the offer of moving
to another state because that means they're not also going
to make less. It's just it's just going to echo out.

Speaker 3 (42:08):
And there are a lot of work from home people
that can get California wages and live in Arizona. That's goods.

Speaker 6 (42:15):
That's a good thing right there.

Speaker 3 (42:16):
Where if you were hired in California, now you're working
home person. Since twenty twenty.

Speaker 6 (42:20):
What did you see with the labor report? A lot
of the last three or four the only jobs creation
was actually from the government sector, which isn't necessarily showing
that the economy is doing good.

Speaker 3 (42:30):
It's not.

Speaker 6 (42:31):
So did you see what the increase was this time?
We do have a chance. We'll have to dig in
that for you guys next week, because that's what we've
been seeing in the last three week, three months, the
labor report. Yeah, it's been increasing, but it's all been
government jobs. So that's not actually showing the economy is
doing well. It's just showing that the government is doing good.
At printing money.

Speaker 3 (42:49):
That would be bad news if all of the job
creation was in the government, right, Yeah, for sure, that's
not good. So the economy right now is strong, maybe
too strong.

Speaker 6 (43:00):
Economic reports will continue to be in focus, and then
rates where they're at. That's where companies are going to
have to contend with when earning season comes in what
two weeks from it now?

Speaker 3 (43:11):
Yeah?

Speaker 6 (43:13):
Yeah, after the inauguration, everyone's probably going to be placing
their bets already has placed their bets on what Trump's
going to say and do in his first one hundred
days and try to play that guessing game well.

Speaker 3 (43:25):
And then there will be some some stuff that you
hear the ego wow, you know, and both positive and negative.
It's just the way he operates, just who he is.
We we hired him to change things, right, and I
promise you he's going to change.

Speaker 6 (43:43):
I definitely think on a short term you might see
some market fluctuations based on whatever he says. But in
the interim, I don't think there's really much he can
do in the in this year. I think it's more
just how the economy plays out well.

Speaker 3 (43:57):
And they put so much pressure on these presidents of
their first hundred days what did you do in your
first hundred days? I don't know where that came from,
but it's got to be exhausting if you've got a
brand new job. And okay, let's look at how you
did during your first one hundred days. Okay, I mean
imagine that from any job you've ever had in your life.
First hundred days? What did I do?

Speaker 6 (44:18):
Well?

Speaker 3 (44:18):
I learned how to learn how to do my job
kind of what I did? You know? Trump having been
through this before, he understands that he knows going in
and this is rare that you have a president coming
back for a second term after having sat out a term.

Speaker 5 (44:32):
Isn't the only time I go to Cleveland?

Speaker 3 (44:35):
That was it? I think it was Grover Cleveland was
the only other one. So he knows, he knows the
lay of the land, he knows how it works, he
knows how where things are, and that should make up
a very nice difference this time.

Speaker 5 (44:49):
All right, I got some answers. Healthcare was up the
most forty six thousand. He's your in hospitality increase forty
three thousand, retail increased forty three thousand, and then the
government increased thirty three thousand. So it wasn't the most
this month last month, so that's rowing, but not one
of the top ones.

Speaker 3 (45:07):
That's indicator that the economy is strong.

Speaker 5 (45:10):
Retail saw a gain of forty three thousand after a
loss of twenty nine thousand. Makes it think maybe there
was a bunch of hires for the holidays.

Speaker 3 (45:18):
Yeah, no question, to be a bunch of higher.

Speaker 5 (45:20):
They lost twenty nine thousand in November and gained forty
three thousand in December.

Speaker 3 (45:24):
Wow, we're gonna learn more next week. On the calendar Tuesday,
we have PPI Wednesday CPI. I thought that's kind of unusual.
Generally PPI solo. CPI this time is leading this. So
you got Tuesday the PPI And.

Speaker 5 (45:38):
Why would that change CPI?

Speaker 4 (45:39):
Huh why would they change that?

Speaker 3 (45:40):
I have no idea. I have no idea, but I
saw that that's kind of backwards. Yeah, normally CPI PPI.
But for whatever reason, the way they're coming out, China
continues to be a problem. Down five percent last week,
three and a half months low. They remember when they
got that big stimulus package, the initials stimulus package, and

(46:01):
its spiked higher. It's pretty much given up all that
game now and it is really economy really struggling with
again the biggest real estate bubble in the history of
the world, that they're even China's having a hard time
trying to manage. What about oil? That's kind of crazy.

Speaker 6 (46:18):
Back to back weeks strong growth, strong.

Speaker 3 (46:20):
Growth up another two percent last week or two dollars
last week, the highest level since October. And when I
was looking at why, it says, well, expec expectations for
a stronger demand from China, I'm thinking, well, that's probably
not going to happen.

Speaker 6 (46:34):
That's not the reason I saw this week. The report
I saw was that the White Houses and talks to
increase sanctions on Russia for oil.

Speaker 3 (46:41):
They did increase sanctions for Russia on oil, from what
I understand, and that was one of two things I
was getting were given for the reasons. The other one
was strength in China, and I'm thinking, yeah, probably not
going to have anything.

Speaker 6 (46:51):
I saw that report on Thursday. It came out initially,
so it makes sense why it was increased both days
on Thursday and Friday. And then I think you're just
going to continue to see the fact that you can't
just have Trump say baby drill and then have all
these projects get created.

Speaker 3 (47:08):
Yeah, I was.

Speaker 6 (47:09):
Talking to it. A guy who creates, who works at
oil industries. They think in ten years, they don't think
in four years. So it's likely that's not going to
be in his in his term.

Speaker 3 (47:17):
It's amazing. We thought it was going lower and it's
going higher. So we'll be back with more of the
Money Matter Show after this break. We appreciate your joining
this on this chilly Sunday morning. I'm being tired of
this cold weather. I want hot weather. Weiber right back.

Speaker 5 (47:31):
Welcome back to the second hour of the Money Matter Show.
I'm Dylan Greenberg here with Dean Greenberg, Dave Shrew with
a bashing board. See Todd Glick got the whole crew
here today. And for those of you just tuning in,
the DOW was down one point nine percent last week.
The SMP five hundred was also down one point nine percent,
The NASDAK was down two point three percent, the Rustle
two thousand was down three point three percent, and the
equal weighted SMP five hundred was down one point eight percent.

(47:55):
So those being the same, the SMP and then equal
weighted SMP being down, the ste makes it think the
market's just down as a whole which it was, and
it was mostly because of Friday.

Speaker 6 (48:06):
It was a yeah, other than Friday, pretty flat.

Speaker 5 (48:08):
Going into Friday. But then we got the strong draws
report Friday morning and that tank the market.

Speaker 3 (48:14):
Interesting part, with the S and P five hundred down
one point nine percent last week, it's still only down
nine tenths of a percent for the year. So the
first week it was up one percent. The first week
of the year was up one percent. That's good.

Speaker 5 (48:28):
In January tends to be a strong month because of
all the new money coming into the markets from the
retirement plant retirement plans.

Speaker 3 (48:34):
Yeah, Now, Dean is fine the saying just because the
mutual fund companies are getting them, and he doesn't mean
they have to put it to word. Well, some some
of them they do.

Speaker 5 (48:41):
There's a lot of money coming into the markets regardless
of something.

Speaker 3 (48:44):
Don't. Yeah, there's none, do it.

Speaker 5 (48:46):
They'll move the markets.

Speaker 3 (48:47):
No month sees cash inflows like this month. Yeah, because
even if you're making a million dollars a month, you're
going to max out your four oh one k in January.
Everybody is going to make a four to one k
contribution in January. You know the fun fact before we
let Christmas disappear through the reverey mirror this week. Last week,
Monday was the twelfth day of Christmas. Now most people

(49:11):
don't understand that what the twelfth Days of Christmas are about.
The twelve Days of Christmas is a song that was
probably written five hundred years ago as a disguised way
for Christians to celebrate their religion. It was at that
time illegal to be a Christian and could be punished

(49:32):
by death. So the twelve Days of Christmas are not
about leading up to Christmas. It's about from Christmas Day
is day number one and Epiphany, which is the day
that the Gentiles saw Christ the wise men. The wise
men saw Christ. That's the twelve days. So the first

(49:53):
day is Christmas, the twelfth day is Epiphany. And each
one of the symbols is some religious what's the word
I want to use some symbol for something religious. For instance,
partry jenni per tree is Jesus.

Speaker 4 (50:08):
I just thought that it was leading up to.

Speaker 3 (50:09):
Nope, you're wrong. So day one of the twelve days
of Christmas is Christmas Day, partriy, jenniper tree, Jesus. And
it goes on through and I could give you all
but you don't, don't care, but it's kind of interesting.
So the twelfth day of Christmas, the day that the
Gentiles were introduced to Jesus, was last Monday. So there
you go. You all know about the twelve Days of Christmas.

(50:30):
It's a religious song, it's a Christian song, and there's
meaning to every one of those things. And it's not
what you think it is.

Speaker 5 (50:38):
Right, good fun, folks, that's fun.

Speaker 3 (50:40):
We talked about in video a little bit. N Video
hit another new all time high last week for the
first time since Thanksgiving after an upbeat speech from their
CEO at the Vegas Consumer Electronics Conference. Really gave a
glowing report. Lots of different things that they're going to
be involved in. You know, the they teamed up with

(51:01):
the driverless truck company Aurora, and they're going to do this,
and they're going to do that.

Speaker 4 (51:05):
And their big thing was like the new gaming chips
for the computers that are going to use that Blackwell
Technology gaming chips.

Speaker 3 (51:10):
But again, I continue to come back to this. You
can come up with one hundred different applications for your chips,
but you only have so many chips. You're producing all
of the chips that you can produce. Right now, you
are selling every single chip you can produce. What's going
to make things better not new markets, not new customers,

(51:33):
because you have all the customers that you can handle
right now.

Speaker 5 (51:36):
Well, like you're saying, they announced a personal computer with
the architecture from the Blackwell chip. Is that which is
the AI chip? So that's a little different market. It's
the personal computer's like a thousand times faster than a
normal PC or MAC. So that's a little niche market
compared to what they've been doing.

Speaker 6 (51:52):
And you're just thinking about the companies who have thought
about this yet. Eventually, your car is going to have
AI capabilities, your car's gonna have a safety features. There's
gonna be other companies that are gonna need to go
into this field and develop products for their main product,
and it's going to enhance that main product by incorporating AI.

(52:12):
And these businesses just haven't thought about it yet. There's
just so much use cases that they don't realize. Yeah,
you could probably create a turn signal, you know that
you just some weird version of it that AI can
help with. You know, you already know you have the
sensors that like help you know when someone's in your
blind spot. Things like that, that you could just continuously
create those sensors that tell you someone's in your blind

(52:34):
spot twenty years ago that wasn't in any car, right,
But what do those require? Semiconductors? Those require inputs that
were never needed twenty years ago. So I feel like
as these new use cases for the product of AI
get founded, you'll have other companies needed to invest in
these chips to get that.

Speaker 4 (52:52):
Probably that's a good point. How many chips do you
think that are in an internal combustion engine two thousand,
about five hundred to one thousand, depending on the make. Okay,
what do you think is in a Tesla twenty five
hundred to three thousand.

Speaker 3 (53:04):
Yeah, a lot of them, A lot of them. Speaking
of which, that's a nice little segue we were talking about.
You know, there's a number of reasons why you would
buy an electric vehicle. Probably the number one reason that
people consider electric vehicles is so they don't have to
buy gasoline, right, something that you don't think about nearly
so munch as maintenance. But the one thing that it

(53:25):
tracks me and will probably keep me hooked on electric
vehicles for life is the speed. I love the speed.
It turns out, get this, I thought all electric vehicles
were about the same in terms of speed, No they're not.
It turns out there are some big differences. Think of
this a Ferrari. Most people look at a Fray and

(53:47):
they go, that's about as fast as you can go, right,
A Frari, Okay, Lamborghin, any whatever. But Ferrari is considered
to be one of the fastest cars on the planet.
A Frari does zero to sixteen about three seconds. That's
what my SUV does, my Tesh suv. But you start
to look in some of these the Tesla models zero

(54:07):
to sixty is two point four, the Lucid Sapphire two
point one. But get this, the fastest electric vehicle out
there right now is the Porsche Taycan turbo tack an
or Tycan whatever it is turbo. Get this zero to
sixty and one point nine seconds one Mississippi, you're there?

(54:32):
Are you kidding me? Can you imagine the damage that
could do to somebody's name?

Speaker 4 (54:37):
One point nine seconds?

Speaker 3 (54:38):
What's your two point nine seconds?

Speaker 4 (54:40):
What's your Tesla doing?

Speaker 3 (54:42):
Three? Well, actually three and a half.

Speaker 6 (54:44):
And also the fastest car that I'm I'm aware of
is the Dodge Challenger Demon that goes zero to sixty
and two point three seconds.

Speaker 3 (54:52):
Yeah, so that would be that would be most of
these would beat that, right.

Speaker 6 (54:57):
Yeah, but that's not like a.

Speaker 3 (54:59):
Yeah one point nine seconds mm hm insane.

Speaker 6 (55:03):
Well the roadster that that they had goes at two
point three. The roadster goes two point three.

Speaker 3 (55:08):
Yeah. Anyway, there's a lot of electric vehicles that do
two point two two point three, which makes them amongst
the fastest cars in the world on the roads, certainly,
and that's another fun part of it.

Speaker 5 (55:19):
There's an electric car that was announced in China, their
newest uh supercar jumps over potholes. What it's crazy. It
has a sensor for potholes and it hops over them.

Speaker 6 (55:28):
Oh, for goodness, hops over the That's just one of
those examples video for it AI being able to be used.
All of a sudden, you're going to have a jump
over potholes feature.

Speaker 3 (55:38):
I saw a genius pot I saw a genius potholes
set up, and I remember what was the Netherlands or Germany.

Speaker 4 (55:44):
I know exactly what you're talking. I know exactly what.

Speaker 3 (55:46):
There's a sensor that sees how fast you're coming down
the street. If you're going to speed limit or below,
you'll have nothing. If you're going above the speed limit
actually drops you know, about two or three inches and
creates bottle. Right.

Speaker 4 (56:03):
I saw one that did the alternate and made a
speed bump.

Speaker 3 (56:07):
It went up. Yeah, okay, this one just drops down
and so, which is essentially the same.

Speaker 4 (56:12):
Yeah, same thing it's gonna be. It's gonna mess with
you either way.

Speaker 3 (56:15):
Yeah. Yeah, it's crazy.

Speaker 4 (56:17):
It's incentivizing.

Speaker 3 (56:18):
Yeah, and it's kind of It's kind of again, Tad.
That's the technology when you which makes a lot more sense.
Rather than have people who are driving the speed of it,
who are obeying the traffic laws, have their cars get
beat up by these speed bumps, it would only be
dealing with those that are exceeding the speed.

Speaker 4 (56:37):
You see Fubo TV this week.

Speaker 3 (56:39):
I did, I did. What do you think about that?

Speaker 4 (56:42):
That was good? It was? It went up to two hundred
and fifty one percent. They're gonna get bought up by
Disney and they're going to combine Hulu and Live TV
services with Fubo.

Speaker 3 (56:50):
Now did Fubo actually did Disney actually buy Fubo or
did they partner with them?

Speaker 4 (56:55):
I camera, I believe it's a partnership.

Speaker 5 (56:57):
Yeah, No, I don't think they bought them. They partner
with them to put them on that Hulu Live TV app. Yeah,
and that's the whole Disney thing. And yeah, I mean
Fubo finally a dead out of the water with that,
but still way down from its twenty twenty highs.

Speaker 3 (57:11):
I can't remember the details on Fubu and I should
I probably shouldn't even bring it up, but it seems
to me that that's a local person that's involved behind that.
I've just checked that out more. You have a grad
I believe, Yeah, I think so, but I need to
That's something I need to to get to get back
to you on what about this? What about these quantum stocks?

(57:32):
Let's talk a little bit more about that, cause we
started to talk about it. Yell.

Speaker 5 (57:37):
Yeah, I mean, you got a few small ones. Only
one really makes money. It's I, O and Q makes
a little bit of money. The other ones don't really
make any money. It's all speculation on what the future holds,
kind of like what AI progress was going to be
twenty fifteen years ago. That idea, it's the next step,
but it's how quick can they do it? You got
Google who announced that one quantum computer that it solved

(58:03):
the problem that normal computers could never really solve hypothetically,
and like it solved in about five minutes, and they
reached that milestone two to three years before they initially thought.
So then they got every quantum stock. Everybody got excited
about it. They know quantum faster. But then also they
shot up, kind of like those twenty twenty stocks where
they just exploded from sixty three cents to twenty dollars

(58:26):
and all of that, but not based on financials, not
based on that. It's all based on the hope and
the expectations and the potential that quantum has, which it
has a lot of potential. But yeah, and then you
got however, you said, Jensen Hang, the n Video CEO,
came out last week and said that it's about fifteen
to thirty years from actual use, practical use, practical use.

(58:51):
So then they tank. They dropped forty fifty percent in
one day because of that. They ganged back a bit
and they'll still probably be around in that. But it's
all potential. It's all what is the next step, What
is the next world with quantum? It's gonna be cool,
but it's how soon can it be or is it
just all gonna be? It's kind of like the way
I see right now is kind of like when will

(59:13):
we'd be federally legal? Remember when all the weed stocks
came out, Oh yeah, and everybody was buying them and
they're doing really well. The ets were doing well because
of the potential that the government was going to make
it federally legal. That's not happened, and it just keeps
getting pushed down the road. Do you never really knowing
it's gonna happen. Granted, this is individual companies doing it,
it's not dealing with the government, but same idea from

(59:34):
what I'm seeing stockwise, they jump up, they'll probably come back,
and then once one you'll find companies that will start
making money. They'll find a practically use for quantum and
it'll be great. Could be Google because Google's got the
resources in Guardy been doing it.

Speaker 3 (59:48):
Yeah.

Speaker 6 (59:49):
I talked about it for a while on the radio,
that these quantum stocks were not anywhere close to practical use.
I say her at the very front, it would be
five to ten years, he said, fifteen to thirty. I
don't know. I definitely don't think it's fifteen to thirty
technologist moves too quickly now, But the fact that it
just wasn't anywhere close. I mean, I think nuclear is
way closer than quantum is on a practical level. Quantum

(01:00:10):
had no practical, actual applications. So why people thought that
they could invest in companies that were really small and
somehow they were going to have breakthroughs in quantum computing
is just laughable because if you actually understand what it
takes to create a quantum computer, it takes billions and
billions and billions, hundreds of billions of dollars. If small

(01:00:30):
companies don't have that, they can't even get funding for that,
So how would they create a quantum computer? They have
most of the major one of the one of these
small quantum computer stocks. He's like, what, I completely disagree
with Navidio CEO. We're already using practical uses. We're selling it,
and you sell their revenue and they actually went down
fifty percent over the last quarter. So if you're selling it, so, well,
why is it going down? You don't actually have quantum capability,

(01:00:52):
you're just calling it quantum, right, And if you actually
think about it from this a game theory, if quantum
is as powerful as everyone expecting it to be. Do
you really think they're going to let a company create
it first? No, it's going to be a government. It's
gonna be our military or China. It's not. They're not
gonna let Google have the most powerful computer in the world,
every major Just think about how why would a government

(01:01:15):
allow Google to hack everyone and everything? They're essentially a
world government if you haven't quantities. So it's gonna be DARPA,
which is United States Military, you know, black box of
new technologies. A lot of people don't know that DARPA
was the ones that created the microwave, GPS. They helped
create the Internet with UCLA. DARPA is a defense project

(01:01:39):
that that the DoD funds that we don't actually don't
know how much money is sent to that each year
of our defense budget. But that helps us get our
stay advanced, stay in on the cutting edge of technology.
And those are classified technologies that we will never know
that they have until eventually we get it. Like they
created the microwave fifty years before we ever started using microwaves, right,
I mean, they they had GPS long before it became

(01:02:00):
a commercial application for the public. Use, and so it's
likely that we'll have colonic computing five ten years before
we ever know it actually got existed.

Speaker 4 (01:02:09):
Do you think we might have it already?

Speaker 6 (01:02:11):
I don't know about now. I think you'd see a
lot of weird things happen if we did, which I
guess we do, so maybe.

Speaker 3 (01:02:17):
But I agree with you. It's either going to be
one of the major governments in the world or Elon Musk.

Speaker 6 (01:02:24):
They'll kill They'll kill him before they let him have it.

Speaker 3 (01:02:28):
You never know what the kind of stuff he comes
up with. But you're absolutely right. It's it's something that's
going to be difficult for an individual company to do
because of the cost. But every country in the world
is trying to do it.

Speaker 6 (01:02:42):
There's only two countries that can that could though it's China.
It's only two countries that could do it that have
the resources.

Speaker 3 (01:02:48):
You're saying China in the US. Yeah, So no nobody else,
no other country.

Speaker 6 (01:02:53):
Name one that has the money and the technical prowess
to be able to do it. Germany probably Germany has
a terrible industrial production over.

Speaker 3 (01:03:02):
The last ten years. It has deteriorated over the last
ten years year.

Speaker 6 (01:03:05):
And it's because their socialism, and they have to take
over what Britain left. And that's why they left is
those big companies in Eurozone have to be the ones
that foot the bill for the countries that aren't doing
their job, and that's why socialism doesn't work.

Speaker 3 (01:03:19):
So I report on real estate this past week. They
kind of confused me a little bit. This is a
report from a company called red Fin. They sell real estate.
They give real estate reports. Active listings in November were
twelve percent higher than they were in November of twenty
twenty three. And I'm thinking, well, of course they are,
because in twenty twenty two they weren't any active listings
and nobody wanted to sell their house. Everybody was coveting

(01:03:42):
their mortgage. And so here we are a year later
and active listings are up to just twelve percent, Okay,
highest level since twenty twenty. More than half of those homes, however,
have been on the market for at least sixty days
without going under contract, which is which is what I've
been seeing. I'm seeing a lot of for sale signs

(01:04:04):
popping up steadily every single week, staying up and staying
up and staying up. And however, the latest monthly price report.
Get this, This is where I'm a little confused. The
latest monthly price report from Case Shiller showed prices nationally
we're up three point six percent in October compared with
the same month a year ago. I have a hard

(01:04:26):
time with that. If in fact, you have more and
more houses coming on the market and they're not selling,
how can prices be going higher? Seems like someone is wrong.

Speaker 4 (01:04:40):
Well, they're they're listing them too.

Speaker 3 (01:04:41):
High, unless it's just well, and perhaps that's it. But
that's but if prices nationally are up three point six percent,
that would be on homes that have sold under contracts,
those have actually sold. So it's kind of like, how's that?
How's that possible? And unless maybe there's a lag. Now
with that said, we have a clients in Green Valley
who recently moved to La Pasada over in West Green

(01:05:06):
I guess East Green Valley if there is such a thing,
and they sold their home in Green Valley in a
day and a half. So if you have a good
property in a desirable location, it's still going to sell
very rapidly. What I was interested in is we when
we looked at the report, the Metro areas with the

(01:05:27):
fastest home price growth in twenty twenty four, number one
on the list, Anaheim, California, twelve point five percent increase
in twenty twenty four. That's on top of a minimum
home price of a million bucks. How is that possible?
How can that be? Appreciating that? And here's the good news.

(01:05:50):
I'm thinking that there's gonna be some sales over there.
I'm thinking that real estate prices probably aren't going to
keep rising in California in the shore term, long term.

Speaker 6 (01:06:01):
Absolutely, it's always just been supplying demand though. In California, right,
it's the most desirable place to live in terms of environment, right,
no question. You don't know environment. You might not love
the policies, but the environment's beautiful. So when you only
have a certain amount of homes, you know, you go
to California a lot of times you'll see these homes
and they're not great looking homes, but they're very expensive. Obviously,

(01:06:22):
there's great parts of California you see beautiful homes. I mean,
there's a lot of homes where you'll be like, this
is a million dollars, yep. I mean it doesn't look good,
but it's a million because of the location, right.

Speaker 3 (01:06:33):
Yeah, I think in Greater La, a million is literally
a starter home.

Speaker 6 (01:06:38):
Right, I mean, yes, you can definitely in La.

Speaker 3 (01:06:40):
And it's because of the land. It's because of the land.
And if God, you're absolutely right, just applying a man.
And as many people as have left California, they've lost
a seat in the House of Representatives, right, So I
mean as many peoples that have left California to go
to Arizona and Texas and others, they're being replaced, I guess,

(01:07:02):
although not at a slower pace since they did lose
a seat in the House Representatives for the first time
in history. I don't know what this fire is going
to do. It's going to be real interesting to see.
Number two in terms of appreciation, this went through me
a little bit. Newark, New Jersey, number two in the country.
Eleven percent increase in value.

Speaker 6 (01:07:20):
You could say that's because everyone in New York, Dylan
knows a lot about this. It's cheaper to live there,
and you still get the time.

Speaker 3 (01:07:28):
Newark is would New York Newark be somewhere you could
compute to.

Speaker 5 (01:07:31):
Comp It's like going from Brooklyn to Manhattan.

Speaker 3 (01:07:35):
Or a little like that.

Speaker 5 (01:07:36):
It's about maybe in between maybe like thirty forty minutes
depending and then New Brunswick.

Speaker 3 (01:07:41):
New Brunswick, New Jersey is third. That must be similar.

Speaker 6 (01:07:44):
Yeah, people was just trying to relocate, kind of like
if you were working in California, but you have a
remote job, right and you're able to live in Arizona,
You're you're doing that.

Speaker 5 (01:07:51):
You commute the same way as if you're in Brooklyn
or something like that. It's just from Newark and he
paid New Jersey, Texas.

Speaker 3 (01:07:57):
And I thought it was kind of interesting. Number ten
on the list in terms of price appreciation over the
last in twenty twenty four, Detroit up eight point five percent.

Speaker 6 (01:08:07):
Really, I was talking to the iHeartRadio, the regional manager
for this area, and she's from Detroit, and I asked her,
how's Detroit doing. She's like, actually, it's coming back really well.
Since since it's lows.

Speaker 3 (01:08:19):
There's there's a fixer upper show, I know, if you've
ever seen it on the Home and Garden channel. These
two young guys they buy these homes in Detroit and
going to fix them up, and then they buy these
homes for like fifteen grand I mean no seriously foreclosed, no,
just abandoned or whatever. They're buying these homes for, you know,
thirty forty fifty thousand dollars to fix them up. And

(01:08:41):
they go in and they buy a whole neighborhood which
is empty, you know, it's been vacated, but it's anyway.
Detroit's making a little bit of a comeback there.

Speaker 6 (01:08:51):
A super Bowl would win. A Super Bowl win would help.

Speaker 3 (01:08:54):
Wouldn't that be something? And I mean, I'm a Viking fan,
and I like the Viking the hopes of Vikings do well.
But there's a part of me that says, col on Detroit,
you know, come on Detroight. I love Kansas City, I
love Mahomes, but there's a part of me that says,
come on, why do you like the Vikings? Come on Detroit?
Because I grew up next door. I mean, that was
the only when you grew up in South Dakota in

(01:09:14):
the middle of that's. My closest city was Minneapolis, and
the only time we would be able to see a
professional game would be if we drive into Minneapolis. They
were They're a local team, the Twins, the local baseball team.
You know that everybody in that eastern part of South
Dakota likes it. But it's it's I say, I'm I'm
a big Mahomes fan. I like watching him play. I

(01:09:36):
hope you wish him lots of success. I'd love to
see the Chiefs and the Lions in the Super Bowl.

Speaker 6 (01:09:42):
I wouldn't. I hope the Chiefs lose in the first round.
That way, you could well, because they have to buy
in their first round.

Speaker 3 (01:09:49):
That way, for me, I couldn't lose because either the
Chiefs get a three peat or Detroit gets what the
first Super Bowl history whenever. I don't think they've ever won.

Speaker 6 (01:09:59):
The Chiefs are the worst fourteen win team in the
history of the NFL. But let's move on what it
doesn't matter, Dave.

Speaker 5 (01:10:06):
You're saying that what you just said, the Chiefs are.

Speaker 4 (01:10:09):
Chiefs are the worst fourteen win.

Speaker 6 (01:10:11):
Yeah, the Chiefs.

Speaker 5 (01:10:12):
So if you flip all one score games, like if
they won one score game and it turned into a loss,
of you flip it the Chiefs for five and twelve.

Speaker 3 (01:10:19):
I think when you've won the Super Bowl back to
back years and our favorite wins, oh, we know, we
know you a little board, we know you love them. No,
they're just bored, you know, they're board. The whole country
loves him, loves my home.

Speaker 6 (01:10:31):
Yeah, the Chiefs are board of winning, of winning. No,
you're wrong on that one day.

Speaker 5 (01:10:36):
I don't think the whole country loves the Chiefs anymore.

Speaker 6 (01:10:38):
I think I think a lot of Patriots they're turning
into too much.

Speaker 1 (01:10:43):
Are the evil Giants?

Speaker 5 (01:10:43):
Now it's the Patriots.

Speaker 4 (01:10:45):
Oh yeah, I can't stand them.

Speaker 5 (01:10:47):
And now you've got Lions coming up from nothing.

Speaker 1 (01:10:50):
They love.

Speaker 6 (01:10:50):
The country is with the Lions year. That's that's I
get that.

Speaker 3 (01:10:55):
I said, I my Bikings fan. I like the Chiefs,
but I'm you know, if the Lions win, I'm all
all in, and that's great. They have been down and
out for so long. I don't think they've ever won
a Super Bowl, so now they have.

Speaker 5 (01:11:09):
They won twenty four to seven last year in the
NFC Championship and lost.

Speaker 6 (01:11:13):
Yeah, they've only been to the NFC Championship game.

Speaker 3 (01:11:15):
And you like you like Dan the coach.

Speaker 5 (01:11:19):
Which is funny. So he played for the Lions back
when they win zero in sixteen and yeah.

Speaker 3 (01:11:25):
I don't think I knew that anyway. That's uh. That's
all coming up this weekend, Wildcard weekend, and then the
next week we got the National championship game between.

Speaker 6 (01:11:37):
Two well, Ohio's recording state, the winner the winners, whoever
wins Friday Night.

Speaker 3 (01:11:45):
We know Ohio State is going to be Texas, so
we know that.

Speaker 6 (01:11:47):
The national champions whoever wins tonight the Friday Night.

Speaker 3 (01:11:50):
You think, yeah, well, the way Ohio State has been playing,
it's going to be hard for them not to win it. Anyway,
We'll be back right after this break with More than
Money Matter Show. Welcome back to The Moneymatter Show, segment
number five. Are we ready to rock and roll?

Speaker 4 (01:12:06):
Sebastian, I'm ready.

Speaker 3 (01:12:07):
I've got Sebastian, I got Toded, I got Dave Sherwick
and that's it. And Dylan and Dean had to run off,
had some things to they need.

Speaker 6 (01:12:15):
To close out the show here for you all. Obviously,
this week the risk assets led the way down. It
was because the interest rates made the storylines. On the
Friday that we had a really strong labor market report
come out and that led the rustle of two thousand
to be down three point three percent for the week.
But like Dave said earlier in the show, we were
pretty much flat going into Friday. It was really just

(01:12:36):
Friday's price action that made the entire market sell off.
Now we're on this really key Fibonacci level that's pretty
much the last stop until fifty seven hundred in my
opinion right here. So I think we really need to
have a positive earning week next week or we will
be going to that fifty seven hundred mark, where I
think it'd be a good opportunity.

Speaker 3 (01:12:56):
We finished last week at fifty eight hundred, so it's
not exactly the end of the world now, No, No,
I think we twenty it's not even two percent.

Speaker 6 (01:13:02):
Down fifty eight twenty seven where we are now one
hundred and twenty seven points used to be big.

Speaker 3 (01:13:07):
Yeah, it's not when the Dow's at six thousand, is it.

Speaker 6 (01:13:09):
No, I'm talking about the S and P.

Speaker 3 (01:13:10):
Yeah, I'm sorry that I said down the S and
P's a six thousand. It's not. And that's something we've
talked about on the show. When you see a seven
hundred point move in the Dow, that used to be
a big deal when the Dow was, you know, seventeen thousand,
it's nowhere near as big a deal. When the dows
is forty two thousand.

Speaker 4 (01:13:26):
It's still a big deal, though, you know, you see
seven hundred points you it makes people.

Speaker 6 (01:13:30):
Call in, that's for sure.

Speaker 1 (01:13:32):
Yeah.

Speaker 3 (01:13:32):
No, I get your attention. And what it did for
me this morning was I was thinking, Man, I got
to find it. What do I want to buy here?
You know, I wasn't I wasn't concerned about selling.

Speaker 6 (01:13:42):
I have a list of about i'd say twenty stocks
right now that I'm really Bullishawn.

Speaker 3 (01:13:47):
Okay, I've got a client that called that I spoke
to on thursdayday. If forgetting Thursday we were closed for
the National Day of morning. It's weird because this should
have been the first full week of the year, but
it wasn't. Next week is the first full week of
the year, and I'm exhausted just thinking about it. I
have worked more than four days.

Speaker 6 (01:14:07):
Well, I think luckily for you, after that full day
a week, you get a three day weekend.

Speaker 3 (01:14:13):
Then we do get the three day weekend coming off that,
so we'll have to rest up after that. Yeah, maybe
we should just switch the full five day week.

Speaker 4 (01:14:19):
Is going to be just switched the four day work week,
I guess.

Speaker 3 (01:14:21):
Yeah, it's a lot on your plate.

Speaker 4 (01:14:22):
Hey, we were talking about oil earlier and that's kind
of gone in a bid lately. You know what has
quietly gone in bid. Do you guys ever watch natural gas?
And the last month the United States Natural Gas Fund
is up twenty five percent. On Friday, Constellation Energy popped
about twenty four percent because the company announced that it
was going to buy their geothermal and natural gas company, Calpine,

(01:14:43):
in a twenty six point six billion dollars deal. Just interesting.
Why is natural gas catching the bid?

Speaker 6 (01:14:48):
You're gonna see a lot of natural gas catching a
bid over twenty twenty five as some of the reports
I've been reading as a lot of the inputs that
you could use oil versus natural gas, or other inputs
that you don't necessarily have to use natural gas for
other country people who are creating products that can use
natural gas are switching to use that. So there's an
intrinsic demand for the product that wasn't there a couple

(01:15:11):
of years ago. That's what I'm hearing from.

Speaker 4 (01:15:13):
I wonder, I wonder if data centers have any use
of natural gas within there.

Speaker 3 (01:15:18):
I don't know. It is the time of the year
when natural gas does typically rally.

Speaker 6 (01:15:24):
It's cold outright, but I you know, with Trump coming in,
I don't think we're going to be using less natural gas.
So there, I think there's gonna be plenty of demand
for it, and there's not that much same level of supply.
It'd say that the oil market can bring on a
moment's notice.

Speaker 3 (01:15:41):
Well, it would be nice to see a more natural gas,
more nuclear things that we have plenty of. Right.

Speaker 6 (01:15:47):
Well, you know what's interesting is who produces the most
oil in the world.

Speaker 3 (01:15:53):
Who produces the most oil in the world. Yeah, can
I say the United States?

Speaker 6 (01:15:57):
It's the United States of America. So it's it's so
crazy that people don't think like we're drilling oil for
some reason because we're ESG. Some people think that, of course,
but we actually are producing more oil than ever. Of
course we don't. It's not net production because it's actually
Saudi Arabia because they don't consume that much oil compared
to us.

Speaker 3 (01:16:16):
Good point, it's good.

Speaker 6 (01:16:17):
So they they're they're a larger net producer, so they
actually are the largest exporter because they don't. But you know,
I learned that we don't actually use the gas that
we make well mine here, we send it else we
selld it elsewhere because our refineries here in the United
States are set up for dirtier versions of oil, and
the new versions of refineries that we would take to

(01:16:41):
refine this new oil that we now mine here in
the States, that is, the cleaner version, would take like
ten years to build out. And since we're so against
oil in the future, a lot of the big companies
aren't wanting to build new refineries, so instead they export
the oil that we might hear to other places that
have the new miners because it's cheaper to make it there.
And then from the point they bring the ven is,

(01:17:04):
they don't bring it the same oil back. No, they
bring the dirty oil that we've always been using because
the refineries that we have set up here in America
are set up for those refineries because we've been an
importer for so long, so we've always been importing, you know,
from Venezuela and the Middle East, and that's what our
refiners are set up to refine that type of oil.
So we actually refined that and we export most of.

Speaker 3 (01:17:25):
Those and the light sweet Texas crude, which is light
sweet because it's a better oil, right.

Speaker 6 (01:17:29):
We don't have ewhere. Majority of it goes out, So
it's interesting, yeah, yeah, because our refineries here is aren't
set up to refine that type of oil.

Speaker 3 (01:17:38):
A couple of interesting stocker moves this week. Walgreens, which
is it's just a terrible twelve months for the company,
sixty percent of its market value gone, got kicked out
of the Dow after one of the shortest runs in history,
twenty five percent higher on Friday to a four month
high after reporting quarterly earnings well above expectations due to

(01:17:59):
cost cutting.

Speaker 4 (01:18:00):
You know, I was, I was soelling, taught about it earlier,
and I was walking into Ross for whatever reason this
week and I was like, basically past. It's like I
was walking through TSA checkpoint to get into the store. Yeah,
And I was just thinking, like, why doesn't Walgreens do something?

Speaker 3 (01:18:15):
No, no, no, A guy there guard at the door.

Speaker 4 (01:18:17):
Yeah, and see you're not allowed to actually walk in.
They have like a little you know, cut off detect Yeah. Yeah, yeah,
you have to. It's a TSA checkpoint.

Speaker 3 (01:18:25):
I don't understand it. I just don't understand a basketball
Greens employees, they don't understand it.

Speaker 4 (01:18:30):
I also don't understand the twenty seven percent up move
on Friday.

Speaker 6 (01:18:33):
I asked someone, I said, do you think there's going
to be more or less Walgreens on the corners than
ten years from now, and you had to think about it.
I'm just like that. I think that's a pretty easy answer.
There's not going to be more Walgreens ten years from now.

Speaker 3 (01:18:47):
You wouldn't think so. You wouldn't think so, but they're
probably should.

Speaker 6 (01:18:52):
And you're now the technology, you could probably create a
Walgreens in your house.

Speaker 4 (01:18:55):
I'm gonna have like a drone drop it off like you.

Speaker 6 (01:18:57):
Could probably have a you were gonna have a three
D printer that creates every product. You just have to
order it from the cloud and it prints it for
you in your house.

Speaker 4 (01:19:06):
We could hope.

Speaker 6 (01:19:09):
I'm telling you, we're not that far off from these
type of things.

Speaker 3 (01:19:13):
No, I didn't you know that same milk Boying, the
worst performing dovestock, slowly recovering over the past month, and
got a boost on Monday after Barclay's. I thought this
was Gussie. Barclays upgraded the stock to a BUYE with
a price target twenty five percent above Friday's Clothes. I
thought that was pretty aggressive. We all, I was talking

(01:19:34):
this past week to a man who had his career
at Boying, and he was not necessarily the biggest fan
of Boeying. Ever, it's difficult to work for that large
of a company because your voice really isn't heard, and
so I think there's a lot of frustration. I think
we see that with raytheon employees as well. There's a

(01:19:55):
little frustration there. But I said, I think Boying will
come back, and he said, oh absolutely, you know, there
was no if Sam's your buy the body, of course
it'll come back, you know. And then he was a
he was a big fan, worked up into listening to
worked up there spends the winters in Tucson.

Speaker 6 (01:20:11):
You were saying, no, no, no, you're finishing Starbucks. Well no,
you're done with the Boeing. Okay, sorry, I didn't want
to cut you off. Thank you. Okay, So this is
the day. The Friday was the day of Constellation, all right,
in two different companies.

Speaker 3 (01:20:26):
Okay, all right, if you don't.

Speaker 6 (01:20:28):
Know, Constellation Energy up twenty four percent on Friday. They
they're just doing really good. Natural Gas is what we
were talking about earlier, natural Gas getting a bit and
there that's their best company out the other Constellation that
all the money went away from it. Constellation Brands, that's

(01:20:48):
the people that make the beers, the Modello and people
that make.

Speaker 3 (01:20:52):
The number one selling beer in the world.

Speaker 6 (01:20:56):
Is it not bud Light again, it's not.

Speaker 4 (01:20:59):
Well, you know, Light has it.

Speaker 3 (01:21:00):
They got bud Light by a little bit.

Speaker 4 (01:21:04):
But David, they've got all this increased demand off of
the you know, I'm gonna boycott against bud Lights. What
does that do to their manufacturing, you know, or the production?

Speaker 1 (01:21:13):
You know?

Speaker 6 (01:21:14):
Can they No, Constellation isn't what do you what do
you mean?

Speaker 3 (01:21:18):
He said? He said they gotta they couldn't. Odella brand
got a nice boost off the bud Light pushback.

Speaker 4 (01:21:24):
Yeah, right, so they couldn't keep up with it, or
maybe their margins weren't.

Speaker 6 (01:21:28):
Well, no, they can easily put out.

Speaker 3 (01:21:30):
Here's what I can't understand. The stock is is at
a four year low. Uh, it's not a fifty Hugh Weego.
It's it's the lowest level since the pandemic.

Speaker 6 (01:21:40):
Well, it kind of just range trained for like two years,
up and down, up and down, and then this seventeen
percent drop just really took out all the games. We
were in it for a while, actually we had we
were in it, but we we exited it about four
or five months ago. After that kind of crazed them
up by light. I thought kind of ran away. We
just you know, the dividend was nice, but he said

(01:22:02):
it's time to go.

Speaker 3 (01:22:03):
And yeah, the sales of the sales of wine and
spirits were down fourteen percent, dragged down by weaker consumer
demand and continued m'stry restocking. The CEO said he did
not know when consumers would return to a normal spending pattern.
That this is in an economy this.

Speaker 6 (01:22:21):
Way, retail sales just came out hot, it come out cold.

Speaker 3 (01:22:25):
I mean, if you're if you're stinking it up right now,
I don't know what's going to help you.

Speaker 6 (01:22:29):
GP One, don't forget that Constellation also owns Canopy Growth
thirty three percent of the company, So anything that you
know that's on their balance sheet. They that was a
really terrible investment. They bought it like when that share
price was like thirty three bucks and now it's at
like eight, So they lost a lot of money on
that investment.

Speaker 3 (01:22:49):
CANape Growth is at like three is it? I think
it's three and a half hour or something like that,
maybe even below that. But yeah, that's been a horrible
investment for them. Yeah, that's been really but it's it
hasn't really come into.

Speaker 6 (01:23:02):
Play, hasn't in a while, but it's always a two
dollars forty five on their balance sheet. They literally report
balance sheet numbers x their canopy growth investment. That's how
bad it is.

Speaker 3 (01:23:14):
They bought half they I thought they about half the
company and it could be could have been a third
bit at thirty three dollars a share and now it's two.
So yeah, that didn't work out well at all. But
their quarterly reports have been pretty darn good over the
last twelve months, even with the canopy growth down right,
so not much. Starbucks down two percent over the past
ninety days. Excitement about new Brian Nichols administration has been

(01:23:38):
overshadowed by labor problems. Barclay's stepped up to the plate.
They thinks the quiet period is an opportunity. Raised the
stock to a buy again with a price target twenty
five percent above Friday's close. A Starbucks.

Speaker 6 (01:23:51):
Another big increase we saw this week was from Oaklow
that stock continues the big, big increases. I'm hearing big things.
And also I'm pretty sure we talked about the Energy
secretary being on the border there, Yeah, Oklo. Sam Altman's
on the board. That's an interesting company.

Speaker 3 (01:24:08):
It is going to be interesting going forward, and I
think there's gonna be a little bit more wheelared and
dealing going on in the Trump administration.

Speaker 6 (01:24:14):
We'll talk a little bit about after the.

Speaker 3 (01:24:16):
We're talking after the break. We're coming up on a
break here. We'll be back with the final segment of
the Money Matter Show.

Speaker 4 (01:24:22):
Welcome back to the Money Matter Show. My name is
Sebastian Borsini. I'm here with David Sherwood and Todd Glick Junior.

Speaker 6 (01:24:26):
We're talking about small module reactors. And the reason that's
such an interesting space again is think about the small
towns around Arizona that have to have seventy fifty miles
of power lines of energy be run towards them to
be able to be connected to the energy grid. And
that's a very archaic system because the idea that you're
actually going to have an energy grid reach out to

(01:24:47):
these small places and they have to go over these
hundreds of miles of barren land, you're going to have
problems with getting that energy transferred. So you instead have
these small modu reactors. Apparently they're even the size of
a pickup truck, and so these small major reactors are
nuclear driven, and you can put them on these small
towns anywhere and it will power the entire town. You

(01:25:10):
don't need to connect it to the power grid. So
there's But also I heard that the power grid that
we have currently is the size of a pickup truck.
The size of the pickup truck, that's how small these
small maderiaitis and it can easily, you know, get through
the entire city energy. You know, you might have to
have like you know, nine or ten for the city
of Tucson, right, But these these things have a lot

(01:25:31):
of power in them, and they don't work on the
traditional nuclear where you know, if all humans go extinct,
they can blow up themselves if no one's there to
make sure that they get shut down.

Speaker 3 (01:25:40):
I had a client to call me last week. She
had some property up outside of Saint John, about thirty
miles outside of Saint John, four three forty acre parcels
that she wanted to sell. So I'm familiar with some
real estate people in the northern nour Zona got a
hold of him and he went out and looked at
it and he goes, yeah, he said, they're four or
three excuse me, three forty acre parcels. Two of them

(01:26:02):
are side by side, so you could sell that as
an eighty acre parcel. He said, there is no electricity
or water to the site. He said, that's no big deal.
I said, it means no big deal. No electricity, you
know what, he doesn't no people up here, he said,
you just put it well in. He said, it'll be fine.
And almost everybody appears on solar. Isn't that amazing? I
mean that because you're so remote that there are no

(01:26:24):
power lines going. And if you think about that, driving
in northeastern Arizona, the Four Corners area, there are hundreds
of miles where there's just nothing, nothing, nothing. And so
if you had land out there and wanted to build
a home or live out there for whatever reason, you

(01:26:45):
could And and I could see how these nuclear reactors
you get, one of these small pickup size nuclear reactors
is going to power the entire neighborhood.

Speaker 6 (01:26:54):
Well, you're also going to give the opportunity is small towns.
Being in these small you know a lot of people
have land in places that they would never really actually
build because they can't get power to But if you're
able to eventually build like these small, little cities. You're
going to see almost a decentralization maybe eventually away from
urbanization that we've seen over the last one hundred and

(01:27:16):
almost fifty years.

Speaker 4 (01:27:17):
We're not just going to put a small modular reactor
out there for a couple hundred people.

Speaker 6 (01:27:21):
No, why not?

Speaker 1 (01:27:23):
You don't know.

Speaker 6 (01:27:24):
I mean, if you think about twenty years and the
practical ability, if you're able to produce them at certain scales,
all of a sudden, you could get to the point
where maybe it's a thousand people's cities, and maybe people
feel more safe to be in a thousand people cities,
still connected, you know, maybe a thirty minute drive to
a big city. But you know, you're starting to see
that already where people are wanting to not be so

(01:27:44):
much in the city, and that trend is probably going
to continue because we've seen society go into this urbanization
period over the last almost two hundred years, and so
eventually we could see the reverse of that where people
want to then kind of get their own space again.
And this might allow it because if you think of
the reason people urbanize is because all the energy is

(01:28:05):
in one place, and it's really easy to get the
energy to one place and it's harder to get it
to these barren lands. But some people want that, and
I think a lot of people don't even know they
want it because they have to be in the city
to get connected to energy, to get connected to the
services that they think are part of normal life.

Speaker 3 (01:28:22):
I think we've seen a little bit of that here
two song with Saddlebrook, which is not exactly right next
door to a major city, and then Saddlebrook Ranch, which
is even further out there. And yet these are sustainable communities.
The people are loving them and enjoying that. That lifestyle
with some elbow room and a will away from the

(01:28:42):
city likes, which is good. Carvana A stock had tripled
over the last twelve months, moved lower after the Hindenburg
short selling service said it's all smoking mirrors. Now I remember, now,
Hindenburg benefits when stock goes down, right, So Hindenburg will
sell a stock, short sell stock they don't own, in
the hope that they're going to buy it back cheaper,

(01:29:03):
and then they'll come out and say nasty things about
the company. You may remember what they what their attention
did to super micro computer. They said the same thing
with super micro computer that the accounting was all messed up,
and and it was. And the next thing you know,
super micro Computer has gone from one hundred to thirty.

Speaker 6 (01:29:19):
Yeah.

Speaker 3 (01:29:20):
Uh. Carvana, on the other hand, kind of yawned when
Hindenburg said it's all smoking mirrors and and then a
few days later it rallied back after RBC upgraded to
stock to a BYE. The next day City Group upgraded
this doc to a BYE. If you're Handenburg, that's kind
of like, whoops. Didn't expect that to happen.

Speaker 6 (01:29:43):
So I'm not gonna lie though. I feel like there's
something to.

Speaker 3 (01:29:47):
That, something to it, a mirror feeling that there could be.

Speaker 4 (01:29:51):
I don't like Carvona. I mean I was looking at
the two sixteen as a way over price, and I'm
looking at the Pepe ratio right now and.

Speaker 3 (01:29:57):
It's does it have one?

Speaker 4 (01:29:58):
It's over two thousand?

Speaker 6 (01:30:00):
Yeah, yeah, the trailing.

Speaker 4 (01:30:04):
No, I think that's just straight straight.

Speaker 6 (01:30:07):
Up ee ratio.

Speaker 4 (01:30:08):
It's two and forty seven.

Speaker 3 (01:30:10):
See, that's the big mistake they made. They got an E.
If you don't have an E, you don't have a PE,
right right. But once you get an E, then is
the value.

Speaker 4 (01:30:20):
I mean, the owner is a guy from Tucson, so
I mean, I hope the company works out for him.

Speaker 3 (01:30:24):
Yeah, Ernie Garcia and his family, And this is the
guy that bought ugly duckleying rental car from Tom Duck.
And that's funny. Tom Duck was Tom Duck's daughter married
Jim Giesling. So the Ducks and no Tom Ducks right now,

(01:30:44):
Tom Duck. I knew Tom Duck forty years ago. Tom
Duck was a kind of an older entrepreneur. He kept
trying to hit the home run all his life, and
when he was in his seventies, he came up with
his ugly Duckling rental car and Ernie Garcia bought ugly
Duckling rental car from him. As I call, and uh,
you know, Tom Duck before he died was a multi millionaire,
which is what he's been trying to do for his

(01:31:06):
entire life.

Speaker 4 (01:31:06):
And then Nurnie went up and bought the auction up
in Phoenix.

Speaker 3 (01:31:09):
Yeah, and then they give him all the credit the world.
I mean, I Carvana was left for dead two years
ago around two two dollars dollars a share. It was
done and the whole the whole thing was just gonna
go could put and it has since exploded higher and
it keeps going. Now we've got now, we've got the
uh the Hindenburg is short selling service, saying it's all

(01:31:31):
buying the sky and a couple of major brokers firms,
and you need to buy this. You know, I had
two thousand times earnings. I'm not sure I'm a buyer.

Speaker 6 (01:31:39):
I'm not sure I'm touching that thing.

Speaker 3 (01:31:40):
You know, I'm not gonna be put clicking the sale
signal there? How about you see it?

Speaker 4 (01:31:45):
I'm good, I'll stay away from it. I'll add it
on the watch list. I'll take a look at it.
But it's not gonna artics, right, I love it. I
love it even more now that's what?

Speaker 3 (01:31:54):
Did you see? What they got there? The They were
up three percent on Wednesday, following upgrade to buy from
new at ubs Ubs has Noble remains the most exciting
growth story in European pharmists one place to continue to
benefit from high demand from GLP one medications. In your term,
they have ozambic.

Speaker 6 (01:32:12):
Well, you know why it's the most exciting in.

Speaker 3 (01:32:14):
Europe, right, because there isn't much exciting exactly? Did I
get it all? Right?

Speaker 4 (01:32:22):
But I mean Novo's down what over the past six months,
and they still have one of the most highly demanded
drugs out there right now.

Speaker 3 (01:32:33):
Yes, yes, it's kind of like similar to Eli Lelly Eli.
Lilly has really taken a hit here down about twenty percent.
They have the earth shaking weight loss drug and an
Alzheimer's drug that is supposedly a bigger deal than the
weight line.

Speaker 4 (01:32:51):
I think that's going to be the really big deal for.

Speaker 3 (01:32:53):
I think so.

Speaker 6 (01:32:54):
But I mean, the nice thing about Nova have is
a two hundred day weekly average, and that takes the
lot two hundred weeks average, and it's sitting right on
that line right now. So that's always a good place
that if you like a company you've been waiting for
it to come back from its all time highs, the
two hundred weekly average is always a good place to
start a position in a company that you've been waiting

(01:33:15):
for it to come down. It might keep going lower,
but the two hundred weekly can normally act as a trampoline.

Speaker 3 (01:33:21):
Speaking of going lower, AMD and Intel cannot get out
of their own way.

Speaker 4 (01:33:25):
I haven't been watching Intel AMD though. That's crazy.

Speaker 3 (01:33:28):
Let's Intel. Intel's down in the nineteen's again, and AMD's
gone from I want to say one to sixty to
one ten something like sixteen.

Speaker 6 (01:33:37):
Currently, AMD had a really bad problem with their pea
in my opinion, and they're coming back to reality. I
think at this point you start to look at the
same thing with AMD that they just came up on
their two hundred day week, two hundred weekly average as well,
So I think that's a good place to at least start.
Maybe in AMD, you know, saying that their all time

(01:33:57):
I at two thirty, right, you're down to one one fifteen,
So it's an over half discount six months ago. Yeah,
I mean it was in it was February twenty four.
But the idea of it is, you know, you've been
waiting for this opportunity. Maybe you start one percent here
building if it keeps going lower, another one percent. But

(01:34:19):
it's a nice place that.

Speaker 3 (01:34:20):
It's definitely dollar cost average because I think people got
caught up in the fact that everybody's looking for the
next end vidio, right, And I think people got caught
up in the in the relationship, the family relationship between
the CEO of Nvidia and the CEO of AMD, then
can't fire.

Speaker 6 (01:34:39):
The nice thing about AMD two is you have the
completion of the Elliott five wave pattern. I'm down.

Speaker 3 (01:34:45):
These are all technical analysis. Again, a technical analysis. Some
call it voodoo. It tends to work because.

Speaker 6 (01:34:53):
I call it prophecy. We live in a similar and
somehow this stuff knows.

Speaker 4 (01:35:01):
You put a fractal on a charge and you see
the way that it just bounces off these things.

Speaker 6 (01:35:04):
It's insane. It just doesn't make sense.

Speaker 4 (01:35:06):
It doesn't make sense.

Speaker 6 (01:35:07):
How does a ten year yield bounce off a fractal?
It doesn't make any sense, but it does.

Speaker 3 (01:35:11):
So.

Speaker 4 (01:35:12):
Yeah, Well, the reason that it works is because everybody uses.

Speaker 6 (01:35:15):
That's not true, that's not true. That's been proven not
to be true.

Speaker 3 (01:35:20):
I just I agree with that is completely not true.
Reason it works because.

Speaker 6 (01:35:25):
Everyone would have to know how to use it, and
no one knows all how to use subject machines are
only like twenty percent of the volume. It's enough, No,
not enough to make the whole market move. Every single
asset class, even bonds, but every single assecon.

Speaker 4 (01:35:44):
Money managers put their like their stop losses at these levels.
You know what I mean.

Speaker 6 (01:35:48):
That's they don't all have the same levels. They all
have different levels. You think they all picked the exact
same level.

Speaker 1 (01:35:54):
Makes no sense.

Speaker 3 (01:35:56):
Todd continue to just have to out of the off
off the We want to be happy. We all want
to be healthy, because if we're not healthy, we're probably
not happy. At a Greenberg Financial, what we really want
to be is profitable to you next week

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