Money Matters: Markets Hit New Highs, Fed Cuts on the Horizon?

Episode Transcript
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Speaker 1 (00:00):
Good morning everybody. It's that time once again, Sunday morning,
eight o'clock right here in seven ninety K and his tea.
It is the Moneymatter Show with Dean Greenberg. I'm glad
you joined us. I'm glad you're part of this show.
We've been doing it a long time.

Speaker 2 (00:13):
As you know.

Speaker 1 (00:13):
Nineteen ninety we started doing our radio show and it's
been really good. It's helped a lot of people, and
hopefully we will continue to see good things happening as
we progress through the next couple of months. So where
are we were? We went up again this week, SMP
went up about one percent. Down went up one point

(00:34):
seven percent, NAVESAC got point eight. Russell was big this week,
got three point one and the RSP, the equal weighted
S and P five hundred up one and a half percent,
finally out doing the S and P five hundred. As
you see, the NASZAK was the one that was down.
For the month. They're still all up close to two percent,
and for the year they're up about ten percent. And

(00:56):
going forward, where are we were in August? Right, guys?
And remember August usually is okay, not great, but it
sets us up for usually a decline in the month
of September, which is the worst month of the year
in August. So if you're trying to get aggressive now,
probably isn't the right time to do it. But there
could be some pullbacks. We've been seeing it some of
these stocks that get really beat up and then they

(01:17):
come right back pretty much pretty quickly if they were
already in good spots. So you look for those opportunities.
But really, down deep, what what you're looking for right
now is for places to be able to put money
when we get through September October, even if it's just
see indexes, have some cash, have some money on the sidelines,

(01:40):
mitigate some risk right now because you never know what's
going to happen. There's a lot of good things happening,
and there's a lot of things that at any time
could be consitted bad and go down the markets. I
believe in holding in there right now because of the
anticipation of Jerome Powell lowing the rates a little bit

(02:01):
in September, but that won't be enough. He is going
to have to go ahead and let us know what
the rest of it is going to be after that.
Is it going to be one of those things where
he's going to just do it because of out of
pretty much being told that that's what he has to do,
and then go from there and then not really lower

(02:23):
him that much afterwards. Is he going to play around
with his personal feelings towards Trump? I don't know. I
hope not, honestly, I really do. I hope we just
get this whole thing put together. I hope rates come
down a little bit. I hope our economy keeps going higher,
and I hope we keep pushing forward. I do believe
any decline in September October will be contained. I don't

(02:47):
think it'll be more than ten percent if it happens.
Is that a big move down? Yeah, of course it's
a big move down. But is it handible? Yes it is.
Remember these markets were all the way down at forty
eight hundred just a short few months ago March. They
got knocked down when they started talking about tarrists. The
incredible thing now is Taris is bringing us money. The

(03:07):
rhetoric I keep hearing, which people laugh at, is if
we bring in enough money off tarists, we get this
economy going the way we want, then what we can
do is everyone that makes less than two hundred grand,
not tax them on federal rates, no taxes. Could you
imagine what that would do to the economy. Do you

(03:28):
imagine what that would do to people's retainable income. They'll
actually be able to put money away for savings, that
will actually put money away for retirement. They actually would
feel like they got ahead of the game. So maybe,
you know, maybe it's a backwards way of maybe a
national sales tax if it happened. But I haven't seen
that much higher inflation. Maybe this is gonna work out.

(03:52):
You know. The thing that I do know, I've been
in this business a long time. Economists for the most part,
are usually wrong because they only are looking at the
vision of numbers. Well, numbers don't lie. We have a
problem with numbers because if you say they don't lie,
and there's always a revision up or down in such

(04:14):
a big way. How can you trust the numbers when
you see them? How could you trust the numbers when
they come out big hoopla, oh anything that Trump doesn't like,
He's gonna go ahead and get rid of you. How
about the incompetency of us getting the numbers for years?
Maybe there's a different method with today's technology you're telling
me there's not a different method. We still have to

(04:36):
mail out censors to corporations and have them fill them
out and send them. How many of you guys do that?
Very few of us ever want to be bothered with
things that have nothing to do with our everyday business.
It's just, you know, there's got to be a better way.
There's got to be a better way, and hopefully they'll
find it. It's just like everything we have has to

(05:00):
be updated, has to be increased, look at you know,
and we got to do it. We got to be proactive.
You know, the FAA system has been horrible for so
many years, you know, so they wanted to make everyone
look bad because you know, let's face it, guys, over
the years, there's been near misses. We just don't hear
about it. Well, now they want to tell everyone that

(05:20):
was near missus. So now we're gonna have to get
an upgrade of the FAA system, which is fantastic. But
now that they're doing it and we haven't seen so
much of that, you don't hear about those positives. You
only hear negatives. I don't know about you. I'm tired
of listening to negatives. Negatives negatives. I want to talk
about the positives, and the positives right now, are there

(05:42):
at least negotiations going on to get peace, not only
in the Middle East but in Ukraine. We finally have
an administration that actually talks tough and reacts tough. We
actually have a president that wants to talk to these

(06:03):
leaders and have sit downs. Do you really think that
Biden could have gotten on a plane on Friday morning
and met Putin in Alaska, be able to have a conversation,
whether it's an hour, six hours, ten or whatever would

(06:23):
have been, then get on a plane to come back
and be effective. There's no way he would have been
able to do that, and everyone knew that that was
on the inside. But that's what we have now. We
have a president that has the energy to fly out, talk,
fly back, and we'll see what happens from the deal. Obviously,

(06:46):
as you know, we do the show on Friday, so
we don't know the outcome yet of what's going on
in Alaska. We'll know that probably later today or tomorrow.
That's one of the things of having to pre record
these shows. You don't always know about some of the
important things that are happening. But we certainly have to
report about it next week. I do know he's trying

(07:07):
to do something something that hasn't been done in a while.
Middle East trying to do something. Okay, last I heard
there is Hamas is considering a full release of all
alive and dead hostages and then maybe we move forward.
And maybe that's because Israel decided to get tough and say,

(07:29):
you know what, we're going to take over the region
and then we're going to hand it off to the
people that want to build and be friendly to Israel.
Let me just think about that. Think about in your
neighborhood that the people around you, the four neighbors that
around you all hated you, and you had to defend

(07:51):
yourself all the time, and they would rather see you
dead than alive. But you just so happen to be
friends with the biggest, strongest person around who's willing to
help you. And so you have the will, willingness, and

(08:11):
the fortitude to fight back because you're able to get
the weaponry and the backing you need, and you're smarter
than those other four neighbors. But if you had the
opportunity to take those four neighbors out and replace them,
with people that are friendly to you. Why would that

(08:32):
be a bad thing? You know, everyone's able to say
all these other things and look at the stuff. I'm
looking at peace, I'm looking at how do you get
to that place? Going ahead and making a deal and
saying we're just going to have let you do the
same old, same old that you've been doing, and letting
Hamas be in there and Hesbolola be there and everybody
else be there. It wouldn't never work. As we know,

(08:55):
we need to change. My biggest model in life over
all the years I've been here, when something is in
work working, change it. And now that doesn't work, change it.
Find a solution that actually works, so as you move forward,
it's good. And I believe that's what we have in
the administration right now. They are willing to change and

(09:17):
do and make the things happen that they go Do
we always like the rhetoric? Do we like the pompous attitude?

Speaker 3 (09:24):
No?

Speaker 1 (09:25):
I get that, none of us do. I don't praise anyone. Okay,
I reward them and tell them they do a good
job when they earn it, But I don't like this
is the greatest, it's the best. It's never been like this.
I mean, you know who talks like that except to him?
Does that bother me?

Speaker 3 (09:42):
Yes?

Speaker 1 (09:43):
But does the things he does, the energy, he has,
the vision, he has to get things done. Yes, people
feel like it's a dictatorship because he just says I'm
doing this, doing this, and doing this. Well, I promise
you ninety percent of the peopleeople that keep saying that
and calling them names and relating them to the to

(10:04):
the German Nazis obviously have never been in a leadership
ownership role where sometimes you just have to do it
because no one else is doing it. People talk a lot,
countries talk a lot. A lot of people talk a lot.
There's a few people out there that actually are doers.
And when doers do stuff, the look that being dictators

(10:26):
that they're doing this, they're doing this wrong. Well, you
know what that the law is out there. Obviously, the
law is interpreted in different ways at different times for
both sides, and then the courts have to decide, and
as we're finding out, the courts have different ideas of
what should be or not be. Also, we're in a
world right now that we got to start looking at

(10:47):
a positive America is definitely on the men and moving up.
You can feel it. The economy, the marketers at all
time highs. What gets me is three months ago when
the markets weren't you know, or four months ago when
they was falling, all I heard for people is, oh,
look at him, he's ruining everything. Yeah, he greg make

(11:08):
America great, but make you poor again, right, all the stuff.
Now that it's up at all time new highs and
everyone's got more money. In the former case of everything else,
you never hear anything. Why can't we hear something positive?
Why is it not? The rhetoric and a lot of
the stuff is debunked about the the the the the
the stuff that they said about Trump and what he

(11:33):
did here with Russia, what he did here with other people.
You know what, We don't know what the truth is.
I know this. I just care that our economy does well.
I care that we move forward and we start going
ahead and looking at positive things. It's a lot of
negatives and governments, absolutely, I don't care what government you are.
Around the world. You can find so many negatives. What

(11:54):
we don't know is what really goes on behind the scenes.
We know this. It's not the people of the country
that want a war. It's the dictators, the people in
charge that want the wars, odds included. When they go
to war, we say we're defending. Sometimes sometimes we're not.
Sometimes there's other reasons we're going to war. But we

(12:17):
could never be in the situation room. We could never
be giving these briefings every day and not just feel like,
oh my god, this is the most dangerous place we've
ever lived in the world. You have, and I just
picture the way it used to be. I mean, we
you know, the whole thing with climate change and stuff.

(12:41):
Do I think the climate's changing?

Speaker 4 (12:42):
I do.

Speaker 2 (12:44):
Do.

Speaker 1 (12:44):
I think it's because it's a normal occurrence over millions
of years.

Speaker 4 (12:51):
I do.

Speaker 1 (12:53):
Do I think there's some things that we can do
to clean up.

Speaker 4 (12:56):
I do.

Speaker 2 (12:59):
I do.

Speaker 1 (13:00):
I believe there's a change going on over time. Yeah,
is there something we can do? I'm not sure, but
I know this. The Democrats have used going green and
doing those things as a way to control the narrative
of what they wanted. They used that to put stuff
in the bills that they wanted because that's where they

(13:22):
were taking the money from. Yes, we need clean water,
we need clean air. But because everyone wanted to want
to I mean, just think about how common sense it
didn't make, didn't make any common sense when they said
by twenty thirty, all cars have to be electric vehicles,

(13:44):
which costs corporations millions of dollars, obviously, because billions of dollars,
because they were starting to gear up to that and
they realized people don't want to buy those cars. Some do,
a lot don't because they're not perfected yet. But if
they did, we're all going to get all electricity. We
were trying to get everybody into electric vehicles. We don't

(14:05):
even have enough electricity for the AI that's coming out.
We're in situations there that we're concerned about, and so corporations,
which are private corporations are figuring out on their own
how to produce their own energy to be able to
take care of these mega facilities that will be producing

(14:26):
artificial intelligence. Do I know it all?

Speaker 2 (14:30):
No?

Speaker 1 (14:31):
Do I understand it now? Do I know there's opportunities
in certain areas of the market that we haven't had before? Yes?
I mean ten years ago, did we think about rare
earth materials? No? Well, now we're getting a little bit
bigger understanding of them and where it's going on. What's

(14:51):
going on. But again, when you sit there and you realize,
oh my god, China has most of it. We got
to do something now. I was starting to make some
rules regulations to be able to take some out. We're
finding in Wyoming, we're finding in Colorado, we're finding in
the Midwest. We got to take care of ourselves. The

(15:14):
situation would Ukraine is they have things for us too,
one of the reason we defend them. But the one
thing I always say to people, if the United States
of America, where we live, we're starting to struggle or
have problems, do you think that the world would come

(15:34):
to support us or the world would allow us to faulter.
They are there to be there for us when they
need stuff. But it's a classic example. If you're no
longer the strongest and the toughest, they don't want anything
to deal with you. It's like friends. Sometimes, got a
lot of friends when you're doing well, but if you

(15:55):
need them because something happens, that friendship ring becomes very few.
That circle of friends becomes very very few. Same thing
with countries, the tariffs, you know. And it's pretty funny
because I had somebody called my office and just say

(16:19):
a lot of bad things about me and called me
names on a message machine because it discussed tariffs, and
I talked about tariffs and how they, you know, on
the surface, look like they're going to really hurt us,
but in reality they're not going to hurt so much,
and that we will make adjustments with it until things

(16:40):
get even down again. The pendulum swings back. It hasn't
even been that bad yet. Very few prices have gone up,
and everyone in there you are, said, well, I don't
understand that. Well, maybe be because companies understand that there's

(17:04):
other ways to do business, other places to go. Maybe
there was so much money being done in between there.
Who knows. The other side probably saying you, listen, you
know what, I'll take a hit for ten or fifteen
percent because you know why, I still want the business,

(17:24):
and I'll get more business if somebody else doesn't want
to do that, because I'll still be cheaper. It's all
about capitalism. It's all about supply and demand. Think about that.

Speaker 2 (17:38):
Think about that.

Speaker 1 (17:39):
We have had RCPI and PPI numbers are coming out
as expected or lower. They're not going higher. The predictions
of them going higher not there, which allows the federal
reserve to go ahead and lower interest rates. If we
lower interest rates and get them down by one and
a half percent from where they are, guess what's going

(18:01):
to happen. We're going to have so much more money
because that's gonna help us so much on our own
debt right now that we have to pay. And if
we keep going down the road that I think we should,
where we can become self sufficient and keep our bond
our interest rates level, and it will be the next step.

(18:26):
And I hope someone has enough I guess gumption to
take it on. We keep hearing about it, but I
guess the one way we do it is by presenting
it in a manner that people can understand it. No
one's going to take anyone social security away, nobody, But

(18:47):
if you think about it, over the next fifteen twenty
thirty years, we can reduce the social security system the
way it is and put it on people themselves. How
do you do that? The people that are getting social security,
full social security and things right now over the next

(19:09):
twenty thirty years are no longer going to be here.
So there's an actuary that you look at and say, Okay,
what do we got to do? How much does the
government have to put in to keep that going. But
in the meantime you switch over, so people that are
twenty twenty five years from now that are still not
in the workforce and stuff like that will not be
even need Social Security because they'll be putting their percentage

(19:32):
in and the employer's percentage in to a restricted account
that is being able to be invested in indexes only,
which would be probably different types of indexes for stocks
and bonds, short term, medium term, long term government bonds.
If we went ahead and did that, our interest rates

(19:55):
would stay low and we as people will get more
money as compounding over that amount of time. Think about that.
If we put our own money away, or seven percent
and their seven percent that the employer puts in into
the account, we would take care of ourselves and we

(20:19):
create a rich country, and we would create a scenario
where we pass it on and so our people that
come behind us there's a legacy and it grows and
we're self sustaining ourselves. There's nothing wrong with that nothing,

(20:45):
And that way we're not holding the government responsible for
making up the shortfalls from the money that they take out.
Couple that with changing terms, Okay, term limits. I don't
understand how they even don't have term limits. The president

(21:08):
has term limits, governors have term limits. Why does Congress
not have term limits and end up being able to
come multi multi millionaires and earning more average amount of money.
There's something wrong with that formula. And it's even worse
that we ask the Congress to vote on should they

(21:30):
have term limits. It's like asking you to vote on
the fact if you want a job or not. If
we had term limits, we wouldn't have the situation of
all this money having to go out for politicking, for
going ahead, and as soon as you get in, what

(21:51):
are you doing. You're trying to go ahead and grab
more money so you can keep in for power and
power and power over and over. Forget that. You can
then make the decision are based on why you got in,
what you think you can fulfill it because it doesn't
matter whether they vote for you or not. The next
time you can't be in. After a certain amount of time,

(22:11):
you get two to success two times that you can
be in just like everybody else, and then you see
where that goes. I promise you we would not have
to worry about Democrats leaving the state like in Texas,
so they can play games. We wouldn't have to worry
about all these other things that go on. The people

(22:34):
would vote, the people that got in would actually fulfill
what they thought was right. And then you get to
the point that they have to actually vote on everything
that comes down, not just one bill, and that has
six hundred and fifty other things in it that we
don't even know that's in it. That's how we fix
the things that are bad in our society. But on

(22:59):
the whole, I think the market's right now at a
point that I think you got to mitigate some risk.
You gotta take some money off the table. You gotta
just be careful. Can I go higher shore? I can
go higher three four five percent? Really, maybe it's a
getting stretched. We're air going into the worst month of
the year. Mitigate risk over the next two weeks. What's

(23:21):
the worst thing that could happen? The markets go higher
and you make less money instead of more money. But
the markets go down, you'll lose less money and now
you have the opportunity to reinvest at lower rate because
you got the cash that you need. That's why you
do it that way, and that way you're not concentrating

(23:44):
on when do I get out. You're concentrating on when
do I get in? And what am I gonna buy?
And what opportunities are going to come up? And how
am I going to allocate? And should I increase my risk?
If the market's full ten percent, you can increase your
risk from where it is today. You're decreasing it now,
then you increase it when you go back down in

(24:07):
a nutshell. Let's hope the war stop. Let's hope economy grows.
Let's hope that we all have more money in our
four one k plants, and let's enjoy life and keep
our health. We do that, we leave us stress and
stop waying about all these other things going on. We'll
be back. It's the Money Matter Show. We appreciate you

(24:28):
listening every single week.

Speaker 5 (24:32):
We got the whole crew back this week, and I'll
tell you what I'm really excited for this week because Dean,
myself and Dylan we were up in Phoenix recording the
latest TV shows that we air on KVOA every Sunday.
It's after the Meet the Press in the mornings, but
our real flagship time is after the ten o'clock News
Sunday nights. So people love hearing that show and watching

(24:54):
that show, so we'd love putting some new information out there.
You'll start seeing those shows and through also put that
on our YouTube page. But just obviously another just chapter
in our story of trying to educate our clients. Right,
we do it with our radio show that we do
here every Sunday, but we're also starting that interactive financial

(25:14):
planning workshop where you can actually just for yourself see
what it actually looks like that a financial plan would
be without having to give up all your information the
first time. Right, you don't have to pay any money.
You actually get fed for free all show up.

Speaker 3 (25:27):
Right, you're essentially just giving them a template. Yeah, this
is this is how it would look if you wanted
to go through this, right, And that's that's the purpose
of this. Yeah.

Speaker 5 (25:36):
And some people, you know, they say have better comfortability
when they're in the group setting because it's not as
you know, one on one. You don't feel the pressure
to answer all the questions and you don't feel as intimidated.
So this is just our way of showing that education
in a different way. And then if you're interested afterwards,
obviously it can be more unique and more specialized for
your actual situation.

Speaker 3 (25:57):
The market continue to push the new all time home.
We've been seeing new all time highs in the tech
evy Nasdaq almost every single week. This week, the SMP
five hundred joined it and the thirty stock Dow thanks
to United Healthcare, which came back from the dead.

Speaker 5 (26:14):
There's a lot of Friday interesting all time highs. Bitcoin
also hit an all time high intra week, backed off
of it quite a bit. Russell two thousand this week
led the week higher, though of the major indisses, three
point one percent higher this week, I mean blew every
other indassy out of the water. I think, like you said,
the other highest one we've been in the dial at
one point seven because he added Healthcare.

Speaker 3 (26:34):
You're not gonna see too many times when the Russell
two thousand now performs the Nasdaq about four to one.
I mean, that's just really unusual. That's that's kind of
what's what I want to use. Dean mentioned it's a
good time to mitigate risk generally when you see the
Russell start to out perform the Nasdaq. That's getting into
the late innings of the current rally. I'm not in

(26:57):
that group that believes there's big down side ahead, but
I think that we're overdue for a pullback. I don't know,
there's it seems like there's nothing that will stand in
the way of this market just keep going higher. And
that's not that's not a good feeling, honestly, when it's
so easy the uh, you know, don't fight the tape.

(27:18):
That's you know, don't fight the tape because there's a
tendency to do it's going too high. I want to
take some It's never a bad idea to take a profit.
You never go broke taking a profit.

Speaker 5 (27:28):
But what you mentioned about small caps, to me is
so interesting because what I've seen also in the crypto
world is Bitcoin is obviously the main one. You know,
when it hits an all the time high, everything follows.
But in my experience and past bull runs, when the
other cryptocurrencies, the other alternate currencies start to perform much
better or much higher than Bitcoin, it's kind of like
the small caps. You know, you're going into the back

(27:48):
endings of the rally phase that was.

Speaker 3 (27:50):
Such an incredible move in bitcoin up and down, pop
from what about one seventeen up to one twenty four,
literally in at a day and a half and then
it came right back down to about one eighteen to
five on Friday.

Speaker 5 (28:05):
Yeah, it was on Tuesday. I was talking to Dave.
I'm like, this thing's gonna pop right here. It popped
and it came just right down. You know what popped
more though, was Ethereum. And that's kind of what I'm
talking about, is these other cryptocurrencies ripple, even dosh coin.
I mean, the coins that don't really have what you
would think much of a future for actual purpose, they're
having huge gains right now. And that's always a scary place.

(28:26):
But I mean, if you look at ethereum, that's probably
the second biggest cryptocurrency. It's not probably, it is, and
that thing has had a huge run in the last
three months.

Speaker 3 (28:36):
After laying dead. While Bitcoin just exploded higher, Ethereum was
just land dead.

Speaker 5 (28:41):
Yeah, And I think part of that, you know, is
Peter Till. Peter Till hadn't made a lot of news
waves this week. He had another company that was ut
like three hundred percent one time. But it seems like
anytime these big names get into it are moving markets.
For example, Berkshire halfway right, Warren Buffett, I'm buying United Healthcare,
everyone else gonna come to the party.

Speaker 6 (29:01):
You also had Michael Berry and David Tepper disclosed large
positions in United health Care.

Speaker 1 (29:07):
And that's why I went up as well they did.

Speaker 6 (29:09):
Yeah, okay, there's a lot of big players bought into
the United Healthcare recently well, and there was a.

Speaker 3 (29:14):
Bunch of insider buying a United Healthcare before it took
this last leg down up around three but right where
it is now about three oh three, three or four.
The new CEO, who's I think seventy four years old,
bought twenty million dollars worth of it now at seventy
four that's probably not a long term investment. I mean,
he's thinking that it's going to pop or maybe well
the first thing he did was just was dropped fifty points,

(29:36):
so at fifty dollars, so maybe a little bit too soon,
but there's an awfully lot of interest. And this is
this is typical of what we see with these stocks
that hang out at the bottom of our thirty stock
doll report, whether it be three M or Boying or Disney, Navidia, Nvidia,

(29:57):
they don't stay at the bottom. Now, with that said,
once in a while to get kicked out like Walgreen. Right,
it's not one hundred percent, but you can look at
that the bottom list of the doubt if you're a
patient person and take some positions there and generally it
works out pretty well.

Speaker 1 (30:14):
Yeah.

Speaker 5 (30:14):
I mean, Dylan, we're talking about on the show this week,
we're taping the error. I mean, the reason the Dow
does that is because it's a committee picking thirty stocks.
But if you want even more diverse vacation, you just
go in the s and P five hundred and you
don't have to be a money manager.

Speaker 2 (30:27):
Yeah, exactly.

Speaker 6 (30:27):
I mean, the indicies will always put in the five
hundred largest companies. If you're looking at the SPY, which
is sm P five hundred ETF you can buy. Vanguard
has their versions called vu voo. It's just the five
hundred largest companies that's ever changing. It'll keep changing in
there and the be whatever is most futuristic in the

(30:48):
sense of right now we're all tech oriented, and that
a lot of tech companies are now top five hundred companies,
and now those are in the SMP and they're also
in the NASDAK. So if you have the QQQ and
the SPY, you're exposed to a lot of technology companies.

Speaker 3 (31:01):
I wish I had palent Here, I wish I had
core Weave, I wish I had Circle, I wish I
had an Nvidia. If you have the SPY, you have
all those. If you have the QQQ, you.

Speaker 1 (31:10):
Have all those.

Speaker 3 (31:12):
They're just not one on one. But it's big. The
big news this week is happening as we air this
show Putin and Trump meeting. I don't know if anything
will come out of it. It's kind of interesting to
see two men, both of whom believe they're the most
powerful person in the world, both of whom believe they're
the greatest person in the world. I ask AI, what

(31:36):
do you get when you have two narcissists negotiating with
the cute answer I was going to share about now,
wasn't it? Was it good?

Speaker 2 (31:45):
No?

Speaker 3 (31:46):
Essentially you get nothing because nobody's willing to give. But
it is interesting.

Speaker 5 (31:51):
But that's honestly, I was thinking about it that because
they are so I don't know, results driven people, they're
gonna have something come out of this.

Speaker 3 (32:00):
Something will come out of it.

Speaker 5 (32:00):
Might be a nothing burger, right, but they're gonna announce
something just so that they wasn't for nothing.

Speaker 3 (32:07):
I think, so, I think there'll be something will come
out of it. And Trump was saying ahead of time,
Putin's ready to make a deal, and I'm thinking, gosh, really,
that's like talking bad about your pointed before a football game.
You don't want to do that, you know, just just
let this.

Speaker 2 (32:20):
Why do you have to do that?

Speaker 3 (32:21):
And Putin's saying, Trump's really take brave and really thinking
outside the box, trying to put this together. You know,
everybody's throwing love at each other.

Speaker 5 (32:30):
But if anything, this whole thing is just another potential
good thing for the market. I mean, if they don't
have any good talks, we're just back to where we
are right now. So it's not like the market is
needing them to have some good conversation. We've had a
war for two years. The market's doing just find. The
economy is doing just fine. Obviously, Ukraine Russia wars and
impacting the world the same way that other world wars

(32:51):
would probably do so, So for the most part, I
think this is just another green shoot opportunity for the
market to climb even higher.

Speaker 3 (32:57):
I think so, I we'll have to see we're due
for a pullback. We're just we just are we've gone
too far, too fast. The S Andp's up thirty three
percent in four months, the nasac's up fifty percent four months.
The Tech index is that fifty five percent in four months.
Markets don't move like.

Speaker 5 (33:16):
That, Yeah, and it's you know, talking about that broadening
that we've seen with the Russell two thousand still year
to date though only up two point eight percent, the
nasdac's up twelve percent, So huge difference this week with
it being up three point one and NASDAK only up
point eight. Obviously there might be of that change, There
might be a little bit of the back half of
the innings rally going on here. But essentially speaking, if

(33:38):
you do have lower interest rates, that is also why
Russell two thousand is doing so well. And the reason
of that is we had lower than expected inflation, Now
was it? I? Me and Dave we kind of scoffed
at the market narrative because if you really look into
the numbers, you care about core inflation. Core inflation is
something that you x out food and energy prices. Core

(33:58):
inflation year over year was higher than expected. But whatever reason,
the market this time really only wanted to see one number,
the only one that they really wanted to see was
a lower number, and they found it in the actual headline,
which is the true CPI that includes housing, includes energy,
and obviously those sectors have been gone. We've seen oil
trade to lower. We've also seen housing not do that well.

(34:20):
That's why overall inflation was reported to go lower, but
the actual things that we all buy and day to
day was higher than expected, albeit the market didn't care.
We expected lower interest rates, and now we have about
a ninety five percent probability of the FED cutting in September.

Speaker 3 (34:37):
And I think that's that's logical because Paul is under
so much pressure and he could take that pressure off
if he would just drop rates a quarter. Some are
talking about a half. I don't know if that's necessary.
Do the numbers warrant it. You could make a case.
Maybe we'll talk a little bit more detail about that
when we come back, and we're coming up on a
break here. The the CPI, like you said, Todd, was

(35:01):
two point seven percent. That's actually the highest this year.
It equals February, which was the high for the year.
Then the PPI came out on Thursday, and the PPI
is the wholesale prices that's what's coming down. The pipeline
that was the highest in three years, a jump the
most in three years. What's coming down the pipeline and

(35:23):
the Port of Los Angeles because so many companies are
front running these tariffs. The Port of Los Angeles in
July had its biggest month ever. So I'm not in
that group. The thanks man, interest rates are coming down.
The world's going to be a happy place. I'm concerned
about inflection. I'm concerned about it. I'm concerned about the
tariffs creating causing some inflation. I know there's two sides

(35:47):
to that. I'm on the side that how can it
not if you're raising prices ten, fifteen, twenty percent, somebody's
got to eat that right. So well, we could talk
a little bit more about that after the break. Again,
we appreciate you taking time out of your soun morning
to listen to us.

Speaker 7 (36:01):
Welcome back to the Money Matter Show. My name is
Sebastiana Borsini. I'm here with David Sherwood, Yllan Greenberg and
Todder Glick Junior. Before we go any further, the show
is sponsored by the green Brick Financial Group and you
can listen on seven ninety Caniste or iHeartRadio. The show
discusses different investment products and strategies. Every products and strategy
have some type of an inherent risk, and we strongly
encourage our listeners to understand the risk to determine whether

(36:21):
to buy, sell or hold. Show has been on air
for over thirty years. The Greenbrik Financial Group is registered
with the SEC. Visit our website at green Brik Financial
dot com for some more information.

Speaker 3 (36:30):
Interest rates pretty flat on the week. The two year
stage right at three seven six where it was the
ten year actually edged to a one month high. And
those of us who are a little concerned about inflation,
take the bond market might have it right.

Speaker 7 (36:43):
I heard you guys talking about it a little bit,
and we mentioned it on previous shows. When you know
the small caps start to get that bid is at
the start of the end.

Speaker 3 (36:53):
Yeah, Well, like I said in the first segment that
that's generally the late innage, when the when the small
caps start to catch up with or start to outperform
the S and P five hundred, that's generally the late enders.
And that it doesn't mean we're going to roll over
and drive. I had a client the other day, so
it's going to go down as much as it went up. Well,
it's hard to imagine that in this environment. Because it

(37:13):
is a positive environment, interest rates probably are going to
be flat to lower if you're talking about the FED.
The trumptomism is rampant out there, and rightfully so. Regulations
are coming off, things are being done to promote business.
The economy is getting better.

Speaker 2 (37:33):
I like it.

Speaker 3 (37:34):
I understand. I understand why we have the enthusiasm. I'm
just of the camp that maybe we've overdone. It's just
a little bit here.

Speaker 6 (37:42):
Yeah, I mean, we're coming into a historically bad time
of the year with August and September two, so you
could see just market seasonality, as you like to say,
is going to hit in September. We can see a pullback,
but it's just a healthy pullback. If it's five even
ten percent, not that big anymore.

Speaker 3 (37:57):
No, Now, I like, I think that's healthy, don't you.

Speaker 2 (37:59):
Yeah, you probably need it a little bit.

Speaker 6 (38:02):
Like you said, all these stocks, all these textalks just
run up so quickly that them pulling back five ten
percent not usually a big deal because they could run.

Speaker 7 (38:09):
Back up, right, And we'd love to put some more
money to work here at Greenberg it's just, you know,
when it's hard to do so when the market keeps
hitting all the time highs.

Speaker 3 (38:16):
Well, we are seeing IPO after IPO after IPO coming out, doubling, tripling,
quadrupling in the first few days of trading. That's very frothy.
That's a that also is not a great sign for
a good strong market rally. You want to see some
healthy skepticism, and right now there isn't any. There just
isn't any. It's be long or be wrong. But again,

(38:38):
I'm always wanted don't fight the tape. I think Dean
said in his monologue. It's probably a reasonable time to
take some profits. And if you've got, let's say, in Nvidia,
which everybody uses as an example, that started off at
three percent of your portfolio, is now nine percent of
your portfolio, pay some taxes, pay some capital gains, take
some of it off the table. I'm not concerned about

(39:00):
Nvidia falling apart, but why not why not have some
cash available? And if you have, if you happen to
hold something in this market that's not working, you have
to ask yourself, what in Heaven's name is going to
ever make this work? If it's not working? Now, what's
ever going to make it work? So you may want
to look into your portfolio shed some of the dogs.

Speaker 5 (39:23):
So you know what an interesting space that you would
have looked at five years ago when everything was going crazy.
Remember Doc, you signed Zoom. You looked at the nuclear space.
Back then you said, why am I holding this thing?

Speaker 3 (39:34):
Yeah?

Speaker 5 (39:35):
Right now, this is a good example. It was just
too soon. Obviously, Now you look at the nuclear space
and you're like, dang, that was an opportunity, that was
a no brainer. But at the time the hype wasn't there.
So even though the hype is here now you still
look at these nuclear companies, they're not making a dime.
I mean, you look at Oaklow that's in the seventies,
huge price appreciation. I mean, we're talking this company when

(39:56):
I was in the thirteenth just last year. Now in
the seventies, it's nothing different. They haven't made any more money.
Actually haven't made any more money at all. But at
the end of the day, the hype has gotten bigger.
Trump has talked about nuclear the possibility, if you start
talking about that, you're going to have the investors flood
into the space.

Speaker 3 (40:13):
I never thought i'd see in my lifetime. Nuclear being
widely accepted again. I'm thrilled that has happened. It is
a wonderful, clean source of energy, and we have generally
as a country pretty well controlled it. It has a
three Mile Island stands out obviously as a as a problem,
but I think it's a It's a clean, relatively and

(40:35):
expensive source of energy, energy that we desperately need to
run all of the things that are and.

Speaker 6 (40:43):
The reactors are becoming much smaller nowadays, not going to
be those huge ones that you saw back in thirty
years ago. And it is a good energy source and
with all these data centers coming up, they're going to
need it.

Speaker 5 (40:54):
Yeah, in three Mile Island, it did its job and
at the end of the day, it did contain it.
And so the whole fear that we can't have this
work is it doesn't make a lot of sense. I
talk about energy for solar and the entire energy space
in terms of solar. Today on Friday seemed to get
a huge bit doesn't seem exactly we know why. Probably

(41:17):
just something to do with you know, I think it's
just based on they purchase things previously and those tariffs
aren't actually going to effect until you purchase new things.
And so pretty much every solar company across the board
seemed to get a ten percent pop after something happened.
But FSLR another just rollercoaster of a ride with that stock.

Speaker 7 (41:37):
Yeah, that thing's been up, down, up, down, up down.
There's tax credits that you know, get taken away, they
get added back on. So it's been a fun ride
for that one.

Speaker 3 (41:46):
Yeah, we talked about the tariff tantrums and they're just crazy.
It's as much as it jumps up and down, it's
just and.

Speaker 7 (41:53):
It must have been something with like the tax credits
or something, just because it wasn't just for solar that
was catching the bid on Friday. It was all the
solar stocks. It was every single one.

Speaker 3 (42:05):
Big anniversary last week. Social Security turned ninety on Thursday,
ninety years since FDR signed that the bill. Fort of retirees.
It's their only source of income. Imagine what this country
would be like without Social Security.

Speaker 5 (42:23):
Imagine if they didn't have to pay into it.

Speaker 3 (42:24):
Yeah, yeah, well it's you know when people say, well,
you know it's an titlement program, it's not an entitlement programming.
You're getting back your own money, you know, so there
was also another anniversary then that was coming up. This
Tuesday is the twenty first anniversary of Google going public,
and I remember like it was yesterday. They wanted to

(42:45):
bring the stock at one hundred dollars to share. Couldn't
do it. There was no demand. Ninety five no, not
a how about ninety no, how about eighty five? Okay,
So they brought a public at eighty five dollars a share.
And don't forget, we had just come off of a
Nasdaq decline of seventy seven percent, so why would anyone

(43:08):
want a technology stock? So in defense of those who
didn't buy Google on the IPO, when you could have
gotten all you wanted at eighty five dollars a share,
it was a time when when, like you said earlier Todd,
that nobody wanted to be exposed in that space. But
if you put eighty five dollars in that you now
have over three thousand. That's pretty good. You can multiply

(43:30):
that by ten one hundred. What if you want to do?

Speaker 5 (43:33):
And another boring space that seems to be the most
exciting this year because of energy is utilities. I mean
xcel Us are the top performing sector. That something utilities
are supposed to be exciting. Now it's to be really boring.

Speaker 3 (43:47):
Utilities to move inversally interest rates. I mean, when in
traditions are going down, you told me to go up,
and just going up, you tell it to go down.
It's very boring other than the paid n ACT dividends.
But they don't they don't appreciate twenty thirty percent they
have this year right been an incredible space.

Speaker 2 (44:02):
To be in.

Speaker 5 (44:02):
And if that just doesn't show the demand of this
AI to make that space go, its crazy. When it's
so boring, I think it really shows why this market
is paying such a premium right now.

Speaker 3 (44:14):
Well, we continue to see new uses for AI all
the time we've talked before. I think probably the most
significant place we're going to see AI is in medicine,
not only in doing scans that you couldn't even begin
to do, couldn't even think of, but targeting certain diseases

(44:34):
and using AI to develop drugs to counteract that disease.
I think the next ten to fifteen years in medicine
will be really, really exciting, and I think the advances
we're going to make, I wouldn't be surprised to see
the average life expectancy jump miserably over the next ten
to fifteen years. And some of these diseases that we

(44:58):
just can't get a handle on, you can get a
handle on them with AI.

Speaker 6 (45:01):
Yeah, it's still hard to buy into healthcare companies sometimes
because you don't know which one is going to be
the most innovative and if their stuff is really going
to work as well as they projected too. But AI
in the healthcare is doing well. I mean you see
those things that the AI can detect rest cancer cells, Yes,
way smaller than a doctor can, and quicker and earlier.
So it's all positive for it. It's just hard to

(45:23):
pick a certain company.

Speaker 5 (45:26):
And with these advancements in AI, what you're going to have,
like you're saying, Dave, is a longer life expectancy. And
with financial planning, most people aren't prepared for that. They
think ninety two ninety four is way too long to
be even planning for. They think, there's no way I'm
getting to that. But realistically speaking, it's going to be
probably in the mid eighties that most people that's going
to be the life expecting I think right now it's

(45:47):
we have seventy two.

Speaker 3 (45:48):
In the Yeah, seventy. But I think there's a statistic,
if I remember correctly, if you make it to sixty five,
you've got an eighty percent chance to make it at
to eighty five. Well, so the average life expect to
see accounts for those that die in their twenties and
thirties and so so, right, you know that that kind
of excuse me me.

Speaker 5 (46:04):
And it's kind of been going down because of the
opioid epidemic that we've had in the country and things
like that. So it's kind of, like you said, skewed,
and it's probably likely even higher for people that do
actually hit retirement. And that's the people that we're talking about,
right that you know they're planning for retirement, they hit
retirement and then they think they're only going to be
living thirty years I mean sixty five to ninety five.
That's thirty years. Wellens when you lived at one hundred

(46:26):
and so you have to have some contingency plans. And
that's one of the cool things about financial planning. Our software.
We can have you lived a one oh five and
you can stress test to see, based on inflation rising
and your current annual expenses, will you outlive your money.

Speaker 7 (46:39):
If you have a fear that social Security is not
going to make it to age one hundred, you know,
come in do the financial plan.

Speaker 3 (46:44):
We could run it through fantastic. We're coming up to
the end of this segment, ready for the second half
of the Money Matter Show. So I don't want to
start with China with up one point eight percent?

Speaker 5 (46:57):
Well, you go what in the last minute we'll talk.
People can go to the website Greenberg Finance dot com
and the minute you go there, you're gonna hit with
a pop up, and that pop up goes straight to
the registration page of our Interact to Financial Planning workshop.
And right now that's gonna be at La Paloma. We're
gonna have these quarterly and it's gonna be about two
and a half hours of us going through a live
financial seminar.

Speaker 3 (47:17):
So free lunch and you get to see what we do.
And we'll be back with the second half of the
Money Matter Show right after this break.

Speaker 6 (47:24):
Welcome back to the second hour the Money Matters Show.
Thanks for tuning in. For those of you just tuning in,
The Dow is up one point seven percent for the week.
The S and P five hundred was up point nine percent.
The Nasdaq was up point eight percent, the Russell two
thousand was up three point one percent, and the equal
weight to SMP was up one and a half percent.
So broad market was doing well this week. The Russell

(47:44):
two thousand, the small cap stocks, they did very well.
Like we're saying in the first hour, that could be
an indication that this market is topping out rather soon
and we could see a pullback. But like we were
saying too, it's a healthy pullback. Is five percent, maybe
even ten percent getting into a black swan reason just
to pull back, just selling, taking profits, especially if you're

(48:05):
in retirement accounts. Get a lot of these tech stocks
just run up real quick. You don't have to worry
about capital gains or anything like that in retirement accounts.
Maybe you're selling, maybe you're taking some profit. That could
be a reason, and then when you got that many
people doing it, you'll see a quick pullback.

Speaker 2 (48:19):
But it's not the end.

Speaker 3 (48:20):
Well, you just see a pullback. N video and AMD
last week because the Chinese government is urging Chinese companies
not to use their chips for government contracts.

Speaker 6 (48:31):
Now they're trying to say the same thing that the
US is saying that it's in vidio. Chips are national
security concern to China. Why don't you use domestic chips?
It's the same thing, really, yeah, it is.

Speaker 3 (48:41):
Now And I will say that I saw a couple
of analysts who have talked to people and trying to say,
now they're ignoring it. Yeah, because they're the best chips.

Speaker 5 (48:48):
Well, we mean Sebastian, we've talked about this, how AMD
technically is the best chips when it comes to just
the straight up hardware. But the reason the video is
has the moat here in America is because a cutter
and that's the actual software that they run on. But
the fact that in China there's not so much of
a network effect around Kutta that there is here in America, and.

Speaker 7 (49:11):
There was one at one points, but they're trying to
disband that, you know, they're trying to segregate away from that.

Speaker 5 (49:17):
So essentially it comes down to just those people in
China that are making AM models. They just want the
best chip. They don't necessarily carry on they can learn
on any software. They just want the best chip for
their thing that they're trying to get, and that right
now would be a MD. And I think that's why
you're seeing AMD that popped a little bit more than
N video this week because of that news.

Speaker 3 (49:35):
And that's a fascinating thing. You guys pointed out on
the show a couple of weeks ago that y N
video is so chips are so in demand. It's not
because of the Nvidia chips, right, It's because of the software.
And it was at one point that they developed it
runs the chips. It's just so much easier to work with.

Speaker 7 (49:54):
There are the first ones to get the hardware in
order to build that software that everybody uses.

Speaker 3 (49:59):
Yeah.

Speaker 7 (49:59):
Right, Todd and I have talked about a college students
are trained on cut of software, So why would I
use a different chip?

Speaker 3 (50:06):
Right, It's kind of like switching to Apple computer.

Speaker 5 (50:11):
Right, you have the network effect exactly what Microsoft word.
If you're trained on in college, it's very hard to
all of a sudden have something totally different, right new Right?

Speaker 3 (50:19):
Yeah, like going from an iPhone to Samsung, go to
go to.

Speaker 5 (50:23):
Being from Google? Good luck?

Speaker 3 (50:24):
Go where?

Speaker 5 (50:25):
Go to bing from Google being being its searching searching being?

Speaker 3 (50:31):
Oh yeah, yeah, I'm sorry. I thought you were saying
bean bean go to yeah, sorry bing?

Speaker 5 (50:38):
Like you ever try to search something on Y'allho, You're like,
how is this still so bad?

Speaker 3 (50:42):
Yeah? And I period is pretty bad too the.

Speaker 5 (50:47):
iPhone, especially when you compare it to like a chat
GBT chatbot like nine day, Like, oh my god, I
could have.

Speaker 7 (50:53):
Such a everything. I could have such a profound conversation
with AI or chat GBT and then US series something
and doesn't any until you the time. It's kind of ridiculous.

Speaker 2 (51:01):
Yea true.

Speaker 1 (51:02):
How old is? How old is?

Speaker 3 (51:03):
How old is Joe Doe? Well, it depends on your location.

Speaker 5 (51:08):
Now it asks you, it's like you'll be the best chat.

Speaker 7 (51:10):
It's like, yes, yes, chat instead.

Speaker 3 (51:12):
Yeah, I love as you know, I love the Google's
AI either shortch Engine, Chat GPT for special things that.

Speaker 5 (51:18):
I did you hear about GBT five now more of
the kind of not likings of it about about a
week through now of its release last week, it came
with its really sought after two years in the work
type of model that everyone said it's going to be
the latest and greatest chat GBT five, But it's kind
of a fifty to fifty. Some people love it, some
people are not impressed at all by it.

Speaker 7 (51:37):
And we're not really talking on a consumer standpoints. I'm
not sure that a regular consumer that uses chat GBT
could really see the differences between the models. But when
you talk to the developers and software people, they are
finding problems with it.

Speaker 5 (51:50):
Scores well on the benchmark test, but doesn't quite do
what everyone wanted to, which is reasoning, being able to
truly answer the question to the right model for the
right answer, because there are different language models for different
type of reasoning questions. If you're trying to do research
for sugges asking how someone how old someone is, it's
a different type of model that's used.

Speaker 3 (52:10):
Apparently I had a change the subject. I had a
client I spoke to today and he had called me
and he is ninety five years old, and he worked
his entire career with GE and he has one point
nine million dollars worth of GE stock and the subsidiaries
at a cost basis of somewhere in the neighborhood of

(52:33):
thirty to forty thousand dollars. And he said, no one
in his family is interested in dealing with it, and
he's going to he thinks he should sell it. Name
on my advice. You're ninety five years old, you're not
going to sell anything and that goes out to anyone
who's listening who's older. Don't sell anything because let me

(52:54):
rephrase that, don't sell any highly appreciated asset because when
you pass away, your heirrors. And I'm not a financial
plan attorney, I'm not an accountant, but your errors are
going to get a step up in cost basis. This
guy's got one point eight one point eight five million
dollars worth of long term capital gains that are going

(53:16):
to disappear.

Speaker 7 (53:17):
He's going to avoid about four hundred thousand dollars worth of.

Speaker 3 (53:20):
Taxes disappear if he just leaves it alone. And I
said to him, I said, you, here's your mindset. You
do not have any ge stock or subsidiaries anymore. You
do not have it. Just don't look at it. Just
don't open the statements, don't worry about it. And again,
just across the board, if you're older and you have
highly had one the other day where the gal was

(53:42):
going to gift her house to her daughter. No you're not,
you're not. You know, she can live there, Let her
live there until you pass away. Then you're going to
give it to her and she's going to have no tax.
So do not dispose of highly appreciated assets if you're older.

Speaker 5 (53:58):
Yeah, and that's that step up and basis that Dave's
talking about. Most people don't know what that word is,
what it means. It's just cost basis steps up to
the market value of the person that died that's giving it.

Speaker 3 (54:08):
Yeah, this guy with that I talked about with the
g as, let's say one point eighty five a million
worth of long term capital gains. That'll put him at
least at twenty percent capital games because of the amount, right,
probably gets AMT as well Alternative minimum tax. But so
it's a kind of a weird example, but in essence,
like like Samasha said, he's talking during fifty four hundred

(54:31):
thousand dollars worth of tax if he sells it today
and if he waits until he passes away at ninety five,
probably not. You know, twenty years from now, there will
be no capital gains tax at all.

Speaker 5 (54:46):
And you know, we had a similar client who has
a very large position in Microsoft and doesn't want to
get rid of Microsoft, but also understands that there could
be a risk associated with it. So there are strategies
to use options to be able to protect a very
highly cont trade a position without having to sell it.

Speaker 3 (55:02):
And John Stabilia in our office is an estate planning attorney.
I heard John talking to a guy the other day
that had owned an eight million dollar house and had
twenty eight million dollars worth of stock, and you know
that that's going to hit the estate tax limit. So
they were working on various types of trust to help

(55:24):
him mitigate some of that estate tax and life insurance
can be purchased to mitigate some of that. There's a
lot of things you can do. And if you happen
to be fortunate enough to be one of those extremely
wealthy people, you have to If you haven't already taken steps,
I would assume you have. If you haven't, we're here

(55:44):
for you.

Speaker 5 (55:45):
And that's the way we've developed as firm is to
be a family office, not for just the wealthy, but
also for the everyday person. Oh absolutely, I mean whether
you have a million dollars, two hundred thousand dollars, ten dollars.
We want to be able to be a resource for everyone.
And so yeah, we have estate plantorneys that can help
you with very complex matters or just a simple trust
and will whatever it means that you need. You know, medicare,

(56:05):
questions that you're going to have when you hit sixty five.
Should I be on advantage or supplement? We have someone
for you, what investments you should be in. We're here
for you how to manage my investments or my finances,
my cash flow. That's where the planning side comes in.
But yeah, we even have people with insurance that can
shop your home insurance, your auto insurance. We want to
be that one stop shop for you financially speaking, so

(56:26):
you don't have to worry about anything.

Speaker 7 (56:28):
We're going to try to educate your first. You know
a lot of financial planners do financial plans and charge
a boatload of money for that, but we do it
entirely for free and send you home with it and
you could go and implement it yourself. If you go
and talk to most lawyers, they're going to charge you
a minute by minute rate or an hourly rate. Right,
Jonathan will actually give you an sit down meeting and
all the cart pricing of what it is that you need.

(56:48):
So again, very good educational resource here at Greenberg Financial
Comply free, completely.

Speaker 3 (56:52):
Free, come in. That's the same with your planning medias,
your financial planning meetings. They're very sophisticated. They're very helpful.
They can give you ideas that you honestly you never
even thought of, and it doesn't cost you a penny,
and you do not have to implement the plan with us.
We would love to have you do it, but there's
no press.

Speaker 7 (57:12):
Take the pack and do yourself if you want. Dave,
we've talked about a cava a lot, and we talked
about a common trend that we're seeing in a lot
of fast food restaurants, and COVID plunged fifteen percent this
week because their same store sales have been declining quite
a bit.

Speaker 5 (57:25):
It's a very interesting part of this economy as you're
seeing that the restaurants are not doing well, but then
you see retail sales report coming zero point five percent,
still growing. Right, People are still buying things, but aren't
going to restaurants.

Speaker 3 (57:36):
Remember a couple of weeks ago, we were talking about
the impact of tariffs and what people would.

Speaker 7 (57:41):
Cut back on dining.

Speaker 3 (57:42):
Fast food? Fast food was number one on that list.
And who's struggling McDonald's, Kava, They're all struggling, right, and
yet Brinker Chili's parent came out with great Earnie, and.

Speaker 7 (57:55):
You even have Starbucks and Dutch Bros. I mean Dutch Bros.
Has been on tear lately, but they both said same
store sales have been declining in their last earning Sculls.

Speaker 2 (58:02):
Yeah, yeah, I mean it makes sense.

Speaker 6 (58:04):
People drink coffee at home, people eat at home, go
to the grocery store and just make food at home.
It's gonna overall. They would think it would save money,
so they're gonna do that.

Speaker 2 (58:14):
Yeah.

Speaker 7 (58:14):
And I think the other day I went out eat something,
got some fast food. It was like sixteen dollars, and
I realized I could have went and bought a steak
for that. You know, It's like, what am I doing here?

Speaker 3 (58:24):
I think I told you guys that my wife had
gone to McDonald's, had gotten a little too close to
those new yellow poles they put up, and managed to
put some yellow paint on her black car. And we
got that all repaired. And five days later she's at
a stoplight and gets rear ended. Fortunately it wasn't she

(58:44):
wasn't injured, but she was injured by ran into by
a gal from Mexico who's here on Avitha. But she
was she did have insurance, thank goodness. And the little
bump in the rear was seventy five hundred buck, So.

Speaker 7 (58:58):
It's a concern now here in Tucson.

Speaker 2 (59:00):
Are gonna Yeah, but.

Speaker 6 (59:01):
Because Jaguar doesn't make cars anymore, so it's pretty rare
to find a bumper to get replaced.

Speaker 3 (59:06):
That's you know what, that's interesting that you bring that
up then, because one of the things when they took
she has a four year five year old Jaguar suv
and they're not expensive and their name sounds exotic, but
they're they're really about the same as any other suv.
They're not expensive. And uh, the guy said, we're going
to have to pound this out because trying to get
a rear quarter panel for a land Rover or a

(59:28):
Jaguar is difficult. And so we'll see she needed a
rear hatch on this one. So I don't know how
difficult that's going to be to get.

Speaker 6 (59:36):
I don't know that that company is in disray right now.
They fired the CEO of the new campaign.

Speaker 3 (59:41):
Then, yeah, they sat right, I think I believe I
believe Deep Jeep and yeah, they've.

Speaker 2 (59:49):
Got that whole this whole like new ad campaign that
came out and it just flopped.

Speaker 6 (59:54):
And there's they just cut out all gas cars that
went on und percent electric electric instead of trying to
transition slowly and keep their sales of their combustions going.

Speaker 3 (01:00:05):
Hey, when we got my wife's car back in twenty twenty,
they said, that's one of the And we got Maya
twenty twenty, right in the middle of the pandemic, got
a good deal. Well, a lot of people coming in.
But they said that at that point that we were
very fortunate because it would be all electric going forward. Wow,
that was five years ago. So now five years later.

(01:00:26):
The interestingly, we were so excited in June because the
government had actually run a surplus due to the tariffs
that had been collected. I thought that was really and
I thought.

Speaker 5 (01:00:38):
That was an accounting quirk.

Speaker 3 (01:00:40):
Tell me about it.

Speaker 5 (01:00:42):
Well, I look this up too, and you said that
as far as what I researched is the way the
money comes in. If it was the extra three days
of the month was included, it would have thrown everything off.
It was like, how the like the July had like
thirty one or something like that, Like how the month.

Speaker 2 (01:01:00):
That could be?

Speaker 3 (01:01:01):
Because in July the budget deficit grew by twenty percent
ninety one billion two hundred ninety one billion dollar deficit
despite twenty one billion in receipts from tariffs.

Speaker 5 (01:01:14):
Yeah, so that was just an accounting quirt.

Speaker 3 (01:01:16):
The annual life deficit. Get this, the annual life deficit
would be three point five trillion dollars in the hole.
And that doesn't include anything for Trump's Golden Dome or
the checks she wants to send everybody.

Speaker 5 (01:01:31):
Are you kidding me?

Speaker 3 (01:01:33):
Yeah, I was just gonna end. This is not gonna end.

Speaker 5 (01:01:36):
Well, yeah, the deficit problem has not been fixed. If
anyone not even not even close, then.

Speaker 7 (01:01:41):
We're gonna take a steak in Intel too.

Speaker 5 (01:01:43):
And I think that's why we talked about.

Speaker 3 (01:01:45):
Well, you know, you know, maybe that's the way to
maybe we buy a steak in and videos taken Intel
a stake in. You're not healthcare, buy the bitcoin, and
maybe that's how we beat the Maybe that's the answer.

Speaker 7 (01:01:57):
Trump about two weeks talk about that Intel.

Speaker 3 (01:01:58):
That's an answer.

Speaker 7 (01:01:59):
Trump about two ago is calling for the CEO to
step down, watch him out once I'm out. And then
this week he comes up and says that they're going
to start investing, they're thinking about investing into Intel, and
the stock goes up seven eight percent.

Speaker 3 (01:02:11):
Now why would he say that? What changed?

Speaker 7 (01:02:14):
You know, they had a great convers CEO came to
the White House, right to each other.

Speaker 3 (01:02:18):
CEO comes to the White House, meets with Trump. Now
they got this love fest going on to the point
where Trump thinks we had to buy some of the company.

Speaker 7 (01:02:26):
No, you know what it was. It was Trump was
trying to get a better buy on it. So he
releases that two weeks ago, ask for the CEO to
step down, stock drops buys it, and then goes up.

Speaker 3 (01:02:35):
Oh yeah, Trump, Trump, Trump and all of these rich buddies. Yeah,
that's exactly how the left Wood's frame it right, Like
did Trump walk on water? You go, oh, he couldn't swim.
I knew he couldn't swim.

Speaker 5 (01:02:44):
I mean Trump probably planned the United Health CEO dying somehow.

Speaker 3 (01:02:49):
It's it's it's very very strange to see that. But
the people could take a page from the what the
Intel CEO did. Trump is malleable. Trump can be swayed
if you don't like Tim Cook started it. If you
want to say that Tim cooks same thing, right, and
I think, but take a page from that. If you've
got something that Trump's doing that you're not happy about.

(01:03:12):
I mean, Trump's gonna take a meeting with anybody important, anybody,
Oh yeah, you know, come forward, let's say, request a
meeting with him.

Speaker 5 (01:03:20):
I think Tim Cook saw how Larry Ellison did it
and it worked very well for him. Same with Sam Altman,
same with the owner of soft Bank. And I just
saw report soft Bank was able to buy a whole
bunch of equity into open Ai because a whole bunch
of their staffers are selling off parts of their shares.
So yeah, soft Bank is a really interesting company that

(01:03:43):
has huge investment ties into this. I mean, do you
remember the press conference with the soft bags EO and
on the spot got him to the Trump got him
to do it another one hundred million. I mean, that's
just how Trump is. He just wants deals, that's all
he cares about.

Speaker 3 (01:03:56):
Art of the deal, a deal maker, part of the deal.
Hopefully make a deal right now up in in Alaska
with that that we can get this war ended. I
feel so bad for the people over that that have
endured this. And Putin needs to go away. I don't
know what his I guess he's seventy two, so you

(01:04:17):
got it. Isn't this funny. You've got a seventy two
year old and a seventy nine year old up there
deciding how the world's going to go. I guess that's
better than having a twenty two and a twenty nine
year old.

Speaker 2 (01:04:26):
I don't know.

Speaker 5 (01:04:27):
Yeah, I mean that's and isn't it so funny that
if you look back at the founding fathers and you
look at their ages when they signed the Constitution? Oh yeah,
it's just like wow, Yeah, that's thirties and forty different
type of area.

Speaker 3 (01:04:39):
Different. And that's why it was so amazing for John
Adams to live to be ninety one back then. I mean,
that's got to be one hundred and twenty, and.

Speaker 2 (01:04:45):
That'd be like one of the oldest guys in the world.

Speaker 1 (01:04:47):
Yeah.

Speaker 5 (01:04:47):
Did you Yeah? Did you not look up the conspiracies
between John F. Kennedy and Abraham Lincoln?

Speaker 1 (01:04:53):
No?

Speaker 5 (01:04:53):
I thought it was your homework, now my homework, Well
that was your Okay, I'm not house that's part of
the housekeeping. That's our housekeeping for next week.

Speaker 3 (01:05:00):
The similarity, similarity, that conspiracy, the similarities, right, are you
saying that it's.

Speaker 5 (01:05:06):
Gonna take it, it's gonna take you out of conspiency.

Speaker 3 (01:05:08):
Yeah, you're a big conspiracy guy like you know. Yeah,
I'm not.

Speaker 5 (01:05:12):
No, I'm not.

Speaker 3 (01:05:13):
I have a good time. Yeah, I know.

Speaker 5 (01:05:15):
Amazon a big week for it is up three percent
this week. And saw that Bill Ackman made a little
bit of a stake in It seems like whenever he
starts to buy a company, he did the same thing
with Uber, and that company got a big pop after
he started investing. And I mean, obviously, what's not to
love about Amazon?

Speaker 3 (01:05:31):
And they also fourteen I'm sorry, fourteen Bucks after earning Yeah, down,
fourteen Bucks came to come right back.

Speaker 7 (01:05:38):
I announced the expansion of its same day delivery program
for fresh foods. And then on that so other grocery
stocks fell. You got Kroger that fell four percent, Sence
fell one percent.

Speaker 3 (01:05:48):
Costco. Costco was on that news. That was news down
on the Amazon news. Essentially that Amazon is saying that
they can deliver up to one thousand additional products, food
products and think same day to rural areas that they've
kind of figured that out. Now, I'm from Clark, South Dakota.
It doesn't get much more rural than that. Eleven hundred people,

(01:06:11):
and it was the county seat one, and how long
it takes to get vegetables delivered to Clark South Dakota.

Speaker 5 (01:06:16):
You know that's true, But I was thinking about this.
If you're in Clark's health like and you have to drive,
you know, thirty minutes to the grocery store, and why
wouldn't you order your toilet paper now?

Speaker 4 (01:06:24):
Now?

Speaker 3 (01:06:25):
Okay, in families to Clark South Dakota was with eleven
hundred people, there were two grocery stores.

Speaker 5 (01:06:29):
Okay, but I'm just saying in general, like if you
had to drive far to a grocery store.

Speaker 3 (01:06:32):
Now, if you want to see a movie yet to
drive thirty miles.

Speaker 5 (01:06:34):
I'm trying to say something.

Speaker 3 (01:06:35):
I want to go to the mall, you have to
drive thirty miles. We had two grocery stores.

Speaker 5 (01:06:39):
I got you.

Speaker 3 (01:06:40):
And if you want to go out for dinner, If
you want to go out for dinner, you went to
the bowling Elle.

Speaker 7 (01:06:43):
Are you using delivery services or not?

Speaker 3 (01:06:46):
We weren't that all right? But Amazon didn't exist. That's
what I'm asking now now that it does, Which would
it be a same to text some of my friends
that still live back there and say, hey, you guys
get Amazon Amazon.

Speaker 2 (01:06:57):
I bet they do.

Speaker 3 (01:06:57):
I bet they have Amazon trucks in Clark, South go
to every day.

Speaker 5 (01:07:00):
Well, it just seems like a great thing. If like
you have to travel far for something, you would rather just.

Speaker 3 (01:07:06):
Let it bring it to you. Right, Yeah, no, I agree,
I got I can. I can absolutely see that happening.
The oil down fifty cents on a week. One of
the things that Todd and Sashi and I and Dylan
we're talking about this week about this inflation situation, the
wholesale inflation up point nine that's very disturbing that that's

(01:07:26):
what's coming down the pipeline in theory. Right. So CPI,
which is a consumer price index up two point seven percent,
in line what it was in February, what it was
in May, what it was in June. Two point seven
very benign. Gives the Fed the ability after the week
jobs report to drop interest rates, which I think it

(01:07:46):
probably will for political reasons nothing else. But remember the
largest component of CPI is housing or shelter they call it,
which is housing in rent, And the second largest component
is oil oils in the toilet. Housing is in the toilet.

(01:08:07):
If these things were and we're still we're seeing inflation
at the highest level in six months with these two
major components not contributing.

Speaker 7 (01:08:16):
What would happen if you get an uptick.

Speaker 3 (01:08:18):
If you get an uptick in oil prices or an
uptick in housing, Yeah, you could be a five percent
just bang.

Speaker 7 (01:08:24):
Totally like that. Very concerning. But then you start to think,
what is going to cause the increase in oil? What's
going to cause the uptick and oil?

Speaker 3 (01:08:31):
Yeah, I really can surgeons in China probably would be
number one. Yeah, and I certainly think that could happen.

Speaker 5 (01:08:41):
It's the nice thing about the laws of supply and
demand of oil right now is you have a lot
of drilling projects that are going to continue to be uplined,
and with technology it makes it easier and easier to
get oil out of the ground. There's other energy sources
as well that are eating into its demand in the
long run. It's not obviously as drastic as some make
it seem, but in the long run it will go

(01:09:02):
from fossil fuels to other sources. So I don't think
oil is just on a trajectory over the course of
the next thirty years that it has to go higher.
In theory, it could probably just stay here, especially if
other energy sources come online as they do.

Speaker 3 (01:09:17):
This is a good level in that it's comfortable for
the consumer and it's comfortable for the oil company. Oil
companies can make money at this sixty one sixty two
dollars a barrel, and the consumers pay for it pretty
comfortable with paying for it. I had a friend of
sure say, well, when Trump starts getting all these pumps
or now, it's going to drop into the forties now,

(01:09:38):
because what will happen is they'll turn those pumps off
if you can't pull it out of the ground profitably,
and that varies depending who you talk to. Fifty three
to fifty five dollars something like that, they're just shut
it out. I mean, if you're losing money in every
barrel you're pumping, why are you pumping any barrels? And
so I think there's probably a floor there in the

(01:09:59):
mid upper fifty where it just won't go much below that.

Speaker 5 (01:10:03):
But some of this inflation seems to be temporary as well,
because of the tariff shock, and it doesn't seem like
there's kind of continuously raised prices after that, and the
consumer isn't going to keep paying more. But one of
the things we do have is wage growth, and that
last jobs report, even though it came in lower than expected,
wage growth did not. It came in just in line
with expectations. So the consumer is making more money and

(01:10:24):
somewhat keeping up with inflation right now.

Speaker 3 (01:10:27):
I think those that I think our point would be
that those who are all giddy about inflation being under
control maybe aren't looking at it as closely as they should.
And we've talked before about the bond market being three
times the size of the stock market, and the bond
market is telling you its rates are gonna do a

(01:10:47):
little bit hot. Yeah, I think the bond market has
a right in this particular case, not because they agree
with me, but I think the tenure was up what
actually probably but because they do agree.

Speaker 5 (01:10:57):
Yeah, the tenure was up this week, but last week,
you know, he was down. And the Freddie Mac mortgage
rate thirty years now at six point five six, so
mid six. Is that it's gonna eventually help the housing sector.
You talked about it last week with the buddy. You
talked to a lot with real estate, and you are
starting to see some green shoots come out of that
busmals sector right now.

Speaker 3 (01:11:17):
Yeah, And he's continuous I shouldn't say continuous. He has
once again seen large amounts of cash buyers from other
parts of the country. Then my next door neighbors house
went on the market seven figures and it's sold quickly,
all cash a retired couple from Montana. Interesting, it's gonna

(01:11:38):
be the winter home. So we'll be back with the
rest of the Money Matter Show. Got a couple more
segments to do, look forward to talking to you.

Speaker 5 (01:11:44):
Then welcome back to the Money Matters Show. My name
is Todd Glick. I'm here with Dylan Greenbrigs, Sebastian Boardsini
and David Sherwood.

Speaker 2 (01:11:52):
Again.

Speaker 5 (01:11:53):
If you want to take advantage of our free interactive
financial workshop that we're going to hold on September twenty sixth,
you could do that by going to our website green
Burg financi dot com. You'll see a pop up and
the registration link will be right there for you. It'll
get sent to our event bright you can sign up.
You'll get an email with a ticket confirmation, and then
in that workshop, we're gonna have free lunch at Lapaloma
Country Clubs, go through our interactive financial plan live and

(01:12:16):
show you what it's all about. And so it's a
great way just to see what it's going to look
like without you having to give up all your information
to begin with.

Speaker 3 (01:12:23):
Who says there's no free lunch right when you came
to mix what you can to say that, this is
Todd Glick And I'm thinking, no, he's Todd Click Jr.
I'm talking reminding made my granddaughter. I was calling my
wife and my was's name is Linda, and I said Linda.
My granddaughter said, you called her Linda. Her name is Grandma.

(01:12:44):
You called him Todd Click. His name is Todd Glick Junior.
I think you gotta have that junior up there. Tesla
up three percent. This kind of interesting story I found interesting.
Tesla was up three percent at the open on Monday
after the company formally submitted a request for an electric
electricity license with the British Energy regulators. If approved, the

(01:13:05):
license will allow Tesla to supply electricity to British households
and businesses. I mean, that's interesting. I found it very interesting.
I'm not sure where they intend to get the power.
They may have solar farms over there that I'm unaware of,
but that's how much demand there is for power. Is

(01:13:26):
that you've got a company like Tesla applying to supply
power and the British government actually considering and yeah, okay,
you know.

Speaker 5 (01:13:32):
It was one of the biggest stories this week. But
Taylor Swift made her podcasting.

Speaker 3 (01:13:37):
Debut, Oh, podcasting debut.

Speaker 5 (01:13:39):
Yeah, apparently which podcast was it? The one with the
Kelsey Brothers. What thee O New Heights, New Heights? And
so it was on YouTube. They were live streaming it
and it shut down, like the whole stream shut down.
It's too many people at once, like one point three minutes. Amazing,
And so it got some NFL execs concerned because the
Chiefs and the Chargers game in Brazil to start kickoff

(01:14:02):
of the season is going to be aired on YouTube,
not YouTube TV, but YouTube.

Speaker 7 (01:14:06):
They got YouTube TV.

Speaker 5 (01:14:08):
That's that's what the article I was reading is gonna
be on YouTube it's and it's the first streaming one
that's gonna be free, so it's gonna be even more people.
And we know how bad Amazon was when they started.
They figured it out eventually, but Netflix seemed to do
really good on their start. But YouTube TV never had
a problem. But this is actually you tube.

Speaker 3 (01:14:25):
Apparently he has made it's so popular that you're showing up,
shut stuff down.

Speaker 7 (01:14:29):
I'm gonna have to I'm gonna have to watch the
game on YouTube.

Speaker 5 (01:14:32):
Apparently this is like they're only one of the year.
But yeah, and I think the reason NFL is doing this,
and it makes sense if it is, is international press,
absolutely right, I mean internationally speaking. If I have no
idea of what football is, I'm not paying for a game.
But if you get me an idea of what it
looks like for free, I might get interested and then
start to get something. And it's in Brazil, South pal
So that's gonna be a cool thing for NFL. And

(01:14:54):
we talked about it last week. Disney, you know, did
a whole deal with the NFL with ESPN, and ESPN
is gonna have the NFL network and the NFL's get
a ten per cents.

Speaker 6 (01:15:04):
They're giving the red Zone channel, well and the network
NFL network, not that I heard.

Speaker 5 (01:15:09):
I heard the channel, the network, yeah, not the ticket.
Yeah yeah, because the network is just like they have
a couple of Thursday night games and that's it.

Speaker 3 (01:15:18):
Yeah. Yeah. Tailor Spist, the whole Tailor Swift thing is
just absolutely amazing.

Speaker 7 (01:15:23):
And in the UFC world, you had Paramount.

Speaker 5 (01:15:25):
Yep, that was a big deal.

Speaker 6 (01:15:26):
Yeah, seven point seven billion dollar deal that Paramount made
with the UFC. No more pay per views than the
Sky cost somebody in average, Well, it's gonna cost you
the average the monthly payment of pay per view or
paramount rather than one hundred and twenty dollars per pay
per view.

Speaker 5 (01:15:41):
Yeah, I'm in Yeah, I'll pay that.

Speaker 3 (01:15:45):
I think that's what I paid that. The only reason
I know that is because I was fishing all my
pills over to another credit card about an hour ago,
and Paramount with thinky fourteen nine nine ago. Really I
pay fourteen nine after that piece of crap.

Speaker 7 (01:15:55):
I think it's gonna be a great thing for UFC
and TKO Holdings as a whole, just because you're going
to bring more people into that sport, right, I mean,
how many people don't watch the UFC card because it's
one hundred and twenty five dollars on Friday night, or
they don't want to go through a bootleg website that's
going to give me a virus. Right, that's a great
way to go.

Speaker 6 (01:16:12):
I'm much more inclined to watch UFC now if it's
on half paramounts exactly.

Speaker 2 (01:16:17):
I might watch it more now than buying the ticket.

Speaker 5 (01:16:19):
Great move by TKO and WWE is a great move
by them. They got them on NETFLX at the beginning
of the year and that seems to be taking off
even more because they're on Netflix specifically. They were on
USA Network for a long time and kind of just
got dead because of cable TV. You know, we've seen
that with CNN and those shows and they don't get
any viewers. I don't even know how you still have

(01:16:39):
money to operate at this point.

Speaker 3 (01:16:41):
It's it really is unbelievable and idea the same.

Speaker 5 (01:16:44):
It makes you realize that they are actually funded by somebody.

Speaker 3 (01:16:48):
Yeah, aht right, att doesn't know, att OG and some
pharmaceutical companies, and it's it's just amazing. You know, I'm
stuck watching that in the gym, and do you guys talk.
There's a lot of other TVs. Yeah, but all other
TVs that were then.

Speaker 5 (01:17:03):
You know, I can watch a and that's a big
of different treadmill.

Speaker 3 (01:17:06):
I can watch it. No, there's like ten of these
high end treadmills that they are really nice ones in
there up there CNNs right in the middle of them.
Then on the right hand side, just like naked in
a frage right now, And on the other side is
the first twenty four hours. And on the other side
that's the home of Gardener Channel and what am I gonna?
Unfortunately ESPN is in there so with the Little League
World Series? And that's the thing that people asking the

(01:17:28):
most these days. Why is the Little League World Series
in Williamsport, Pennsylvania. Not even williams Port, Virginia.

Speaker 7 (01:17:36):
Williamsport, Pennsylvania at the two side at the Tucson Record Club.
You can't even turn on Fox News or CNN. They
don't let you good. I don't want to fight.

Speaker 5 (01:17:43):
This one's gonna be good, so you know.

Speaker 3 (01:17:45):
So why is the Little League World Series played in Williamsport, Pennsylvania,
a little town of one hundred thousand people out on
the hills, a beautiful setting out on the hills of Pennsylvania.
Why Because in nineteen thirty nine, Carl Stoates was working
for an oil company. He was a clerk, and he
decided the kids needed more organized sports. So he started

(01:18:09):
Little League Baseball in Williamsport, Pennsylvania, And to this day,
the Little League headquarters is in Williamsport, Pennsylvania, as is
the Little League World Series. Kind of two factorids on
the Little League World Series. The team from Argentina, excuse me,
the team from Venezuela. Venezuela. We're not really fond of

(01:18:30):
Venezuela right now, correct, I mean that's alm We supposed
to be hitting on them.

Speaker 4 (01:18:33):
Just don't.

Speaker 3 (01:18:34):
Any team had to get each the members had to
get a special visa to be able to come into
the country, and none of the parents were allowed to
come none. None of the parents were granted special visas
to watch their kids play in a Little League World Series. Now,
that to me seems a little cold. And one of
the more interesting names in the history of the Little

(01:18:56):
League World Series is brain Tree, Massachusetts. So I had
to google that. Where does Braintree karate name? Your town?
Braintree was founded several four hundred years ago and it
was based upon Braintree, England. You like that, Todd Tod's
over here cracking up. Anyway, Braintree, England, Braintree, you have

(01:19:21):
to trip for the team from Braintree. And I will
say that being from South dakotas to fall South Dakota
has a team in there. They're in the Winter's bracket
goes evolved. Yeah, yes, what'd you have besides.

Speaker 5 (01:19:32):
When's the spelling bee?

Speaker 1 (01:19:33):
But you know you can report on.

Speaker 3 (01:19:36):
The spelling bee. I'm involved in the Little League world here,
I'm a spelling bee.

Speaker 2 (01:19:41):
You know.

Speaker 5 (01:19:42):
All I know is let's get back to the market.
We have a really great opportunity right now with AI
continues to grow pretty much every port part of the economy.
XLU is just one example. Utilities are super boring. It's
growing at communications because it has Facebook, it has good
It's going to be growing. Technology obviously is going to

(01:20:03):
be growing. Some of the lagguers we talk about though,
is healthcare. You know, healthcare is just such a tough
place to be invested in because of the unknowing patent drama.
I mean, you have to be a patent lawyer to
seem to really know whether someone has a stronghold on
a certain drug, and then you also have to understand
trials like you're in the business because if you miss

(01:20:24):
by one percent, apparently it's a huge deal. So it's
a very difficult place and that's why it's in the
bottom of the sector right now. And it's kind of
like what you're saying, if you own something that's not working,
what's going to make it work? Here?

Speaker 4 (01:20:35):
Yeah?

Speaker 3 (01:20:35):
Yeah, this is a great time to be looking through
your portfolio and taking the dogs and behind the barn
and shooting them. Is that time? Yeah, Because there's a
lot of exciting things going on out there, we get
a pullback, like Dean Shered in this monologue, it'll pull back.
Get your list ready, pick out a couple of names
you wish you owned, and get ready to deploy those losers.

Speaker 5 (01:20:58):
One of those names I'm thinking about right now, and
we've been talking about this is Qualcomm. Qualcom is the
company that's just been edging below because people do aren't
quite into the idea that we're going to have AI
and all of the our everyday things, our phones, our cars, are,
even refrigerators, everything is going to have these different chips,
and Qualcomm specializes in this the edge AI. The actual

(01:21:21):
AI chips are going to go into the physical products
we all use right now. All the hypes around cloud
AI and the data centers and the huge networks that
get built out that companies can plug into to use
AI for their specific purposes, but there is going to
be a build out of these actual physical products, and
people like Qualcom are going to take advantage. And I
also saw that Marvel has a big kind of market

(01:21:43):
share of the automobile space as well. So those companies
not quite have come up as some of the other
semiconductors because of just the hype cycles. So that's the
only thing I think at this time in the market
that you're going to be able to find some alpha
is seeing things that just haven't had the hype cycle
around them yet but still makes sense based on all
the other narratives in the market.

Speaker 7 (01:22:05):
And on top of that, you have you know, if
we're going to talk about Qualcom being an auto chip player,
how many autop how many chips are in a new car,
It's ridiculous, right, and double the amounts that's in an
ice vehicle, internal combustion vehicle. So as we you know,
build outs are ev infrastructure, it's just going to get
more and more and more.

Speaker 6 (01:22:25):
Another tech company that's interesting lately is Apple. I mean,
it's come thirteen percent off, it's lows the iPhone seventeen
and all the new gods that are coming out in September,
So look for an interesting fourth quarter from those results.
I mean, it seems that Tim Kick was saying that
people are much more excited for that iPhone seventeen than
the previous generation. They're turning in, they're getting ready to

(01:22:49):
they're interested in the AI version of it.

Speaker 3 (01:22:52):
That was the whole thing behind sixteen, right would have
AI capability, they just never quite developed.

Speaker 6 (01:22:58):
Apple's been slow to the AI game and that's been
the issue, and that's why has been down twenty percent
this year so far. But then they made a deal
with domestic infrastructure and that's why I jump for the
thirteen percent, but still down for the year about eight percent.
And it's still Apple, and we're you don't you don't
think they're going to go down without a fight in
the SAI generation, even though they did lose some top

(01:23:20):
developers to Meta, who's paying hundreds of millions of dollars
to get people over.

Speaker 3 (01:23:25):
I think the consensus stealing is they need to buy somebody.

Speaker 2 (01:23:28):
That's probably what's gonna happen.

Speaker 3 (01:23:29):
I think so.

Speaker 6 (01:23:30):
I think they're behind the eight ball right now, so
they probably gott to buy somebody.

Speaker 3 (01:23:34):
But if we wake up one day and find out
they have bought Perplexity or somebody like that, I think
the stock.

Speaker 6 (01:23:40):
Junk Perplexity is worth eighteen billion dollars and they're trying
to buy Google Chrome for that cash for how much
thirty five billion cash, but they're worth a eighteen billion
so it's interesting.

Speaker 3 (01:23:51):
Yeah, I've read about that. It most didn't believe there
was any chance that happening, but it shows you if
Google were to break up, would be instructed or ordered
to break up some of the parts is worth way
more than the whole.

Speaker 2 (01:24:06):
Yeah.

Speaker 3 (01:24:07):
I don't know where that stock goes if there if
they have to break into three or four pieces, but
look what happened to Ge. Yeah, G's just been phenomenal.

Speaker 7 (01:24:15):
Welcome back to the Money Matter Show. My name is
Sebastian Ward. Seending here with David Sherwood, Todd Click Junior,
and Dylan Greenberg.

Speaker 5 (01:24:21):
One of the companies I wanted to talk about is IBM.
You know that company has come off a lot of
It's all the time highs. There's a lot to love
about this company. Obviously, AI is something they're going to
be involved with a huge business to business product, but
also quantum. They have one of the best quantum computers
out there right now that actually have practical usage. I

(01:24:43):
think Google's probably the only one I'd say definitely have better,
and the only ones that might have better for sure
is the government, and they're not going to tell us, right,
So IBM in terms of business computation, I think is
by far one of the leaders, if not the leader,
and them coming off their highs could be a great
opportunity to get in obviously. That's why we don't recommend

(01:25:03):
this any product on this show, though, is because you
got to come in. We got to see your risk tolerance.
We gotta. We don't know your entire financial.

Speaker 3 (01:25:10):
We don't know your investment objectives. We don't know your
risk tolerance. I mean you could be a very aggressive investor.
Maybe IBM too quiet for you. You may be a
very conservative investor, IBM too aggressive for you. We don't know,
so we don't We don't recommend anything of the show.

Speaker 7 (01:25:24):
And before this drop for IBM, I mean, it had
a spectacular year up.

Speaker 3 (01:25:28):
To that point, and you couldn't get enough of it right.

Speaker 7 (01:25:30):
And I remember a couple of weeks ago when they
released their earnings. I forgot exactly what number that they released,
but investors didn't like it, and you said something like
investors were just looking for a reason to sell, any reason.
I hope that we're not at that point in the
overall markets. Our investor is going to just start looking
for a reason to hit that sell button. And you know,
see the pullback.

Speaker 2 (01:25:48):
Five so far.

Speaker 3 (01:25:49):
No, I mean everything we saw, they're looking for a
reason to buy. Still they're just just so much fomo.

Speaker 5 (01:25:56):
I mean, how can you be. I mean, if you're
anyone that sees up drop in this this year, you're like, yeah,
this sucks. But think about ten years from now. Is
AI not going to be more built out?

Speaker 3 (01:26:07):
Sure?

Speaker 5 (01:26:07):
Are we not going to have more advanced technologies? Are
we not going to have such a higher growth rate
on everything we.

Speaker 7 (01:26:12):
Were talking about earlier on the show. Just think about
all the things that AI can go into your microwave,
your fridge, your phone, your podcast studio, your security system
on your at your house, you know everything.

Speaker 6 (01:26:25):
I mean, Dave like talk talk about like when the
Internet came out, it was all brand new. It was
all just a myth that nobody knew it, nobody used
it that much. And now look what it is today.
That's what thirty years later. But it took five years
for it to become huge, and now it's just part
of our life.

Speaker 3 (01:26:39):
They changed the world today, change the world too.

Speaker 2 (01:26:42):
And it's going to be quicker. It all moves quicker,
exponentially quicker.

Speaker 5 (01:26:45):
And like you said, Dave, the difference between the dot
com bubble craze and this craze is there's actual money
that is being put behind it, and they're reputable companies
that are doing so, and it's billions of dollars being spent.
It's not some pets dot com that will spin up
for a couple one hundred bucks and now it's trading
out a billion dollar evaluation.

Speaker 3 (01:27:02):
Yeah, this is not the dot com. This is not that.

Speaker 7 (01:27:06):
I mean, you're you're still gonna have companies out there that,
you know, throw AI behind their name, just like that
energy drink company that we spoke about a couple of
months back. You know, you throw AI in your name
and then it's just it's through quantum. Yeah it was quantum.

Speaker 5 (01:27:18):
And you gotta be careful though, Yeah we're talking about that.

Speaker 7 (01:27:21):
Do your due diligence before you just jump into a
company because they're investing in AI. Maybe it's not going
to be the next mix thing just because you've got
a newsletter on it, you know, do your due diligence,
look at their books.

Speaker 3 (01:27:33):
Go ahead.

Speaker 2 (01:27:34):
I was just saying.

Speaker 5 (01:27:34):
Another company that seems to just be dragging is PayPal,
you know, and that that seems to be a company
that you know eventually is going to get some type
of bid just because of it's very entrenched. It's network effect,
in my opinion, in the global e commerce site. I mean,
you go to any thing, you see the PayPal no
absolutely thing, right, absolutely no, Not all of us use it,

(01:27:57):
but it's so entrenched that at a certain point, these
technological advancements are going to find its way to that company.

Speaker 7 (01:28:02):
Again, keyword global that Todd just said because of the
new you know, crypto technologies that they're going to be
able to use. And I know that you haven't really
adopted that yourself, but well, the belief in the state
of the belief in stable coins, right.

Speaker 3 (01:28:15):
I don't say I don't believe it. I just don't
understand how I'm I'm in the Jamie Diamond camp. I
don't understand why we need it. That's why I Matt, Well,
we just.

Speaker 5 (01:28:25):
Have really old ways of doing bookkeeping. Is the simple
way you.

Speaker 7 (01:28:28):
Can put it, and this is a lower transaction costs technological.

Speaker 5 (01:28:33):
Way to do it for cheaper.

Speaker 3 (01:28:34):
And it may it may be that you know, can
fifteen years from now everything's been run through stable coin.

Speaker 5 (01:28:39):
That could be, well, everything's going to be tokenized for sure.

Speaker 3 (01:28:42):
It could be into a whole new deal.

Speaker 5 (01:28:44):
I mean, you don't have a T plus one, you
have a T plus one second.

Speaker 3 (01:28:47):
Sure, right, No, yeah, I understand that completely, right, Yeah,
they just at this point, Jamie and I are probably
about the same age.

Speaker 7 (01:28:55):
Well, I understand why we're going to need that talk
about United Healthcare.

Speaker 2 (01:29:00):
We did.

Speaker 3 (01:29:01):
We did talk about your health. That was good. You
have to be careful in this space though, this technology space.
Core Weave is a good example. Core Weave is one
of the new IPOs that came out. The stock quadrupled
in his first five months of trading. Very involved in AI,
very involved in enhancing the speed of AI, in bed

(01:29:25):
with Nvidia on a Bunch of Things. Dropped eighteen percent
on Wednesday. It's now thirty five percent off of that
fifty two week high. After posting better than expected revenue,
but during the earnings call, the CFO said revenue growth
remains constrained as demand how strips supply. Okay, so that's
a nice problem to have.

Speaker 7 (01:29:45):
Is it's a great problem to have, and we were
talking about it this week. The price action was very
interesting headed into Friday because Thursday nights was supposed to
be the day of the lock up period for those
IPO shares of core Weave was going to be ending.
So you and I had talked about before the club
or before them open and bell, are we going to
see this, Are we're going to see more selling pressure,
you know, from people that are actually able to sell

(01:30:07):
their stock at this point. Or was the selling pressure
all just shorts interest based, you know, shorts coming atfter
this thing. That's kind of what it seemed like to me.

Speaker 3 (01:30:14):
I know, a lot for a few clients on Friday,
think on Thursday, thinking that probably we get a pop on.

Speaker 7 (01:30:20):
Friday, all right, and Friday will happened and it stayed flat.
Little pop.

Speaker 3 (01:30:25):
I think it's ninety eight to one O one something
like that.

Speaker 2 (01:30:28):
No BODG deal.

Speaker 3 (01:30:28):
But yeah, that that generally, and again the lock up
period when you when an IPO comes out, if you
were one of the people who were able to get
shares in an IPO and you're restricted, you have a
period of time where you cannot sell to stabilize it,
try to stabilize the IPO. And that period of time
ran out for Core Weave Thursday at midnight, and so

(01:30:52):
Friday morning was the first time that people that worked
for core Weave and were giving stock could sell it.
It was down fifty So if you have any belief
in the company at all, you're probably not going to
dump it.

Speaker 7 (01:31:05):
I mean, it's a smart play as a short seller.
You know, headed into the lock up period to keep
selling these shares, because again you're creating that fear for
those people, those investors, those holders that cannot sell their shares.
Market opens, now I can sell my shares of stock
struck twenty percent this week, you know what, I'm up
on the position, I'm out.

Speaker 3 (01:31:23):
We talked about healthcare and pharmaceuticals, and Thanks Todd mentioned
Eli Lilly had a fifty two week low a week ago,
and then we found out last week about a lot
of insider buying. The CEO bought a million dollars worth
of the stock in the open market. Now that's not
the twenty million that the seventy four year old CEO
of United Healthcare bought. It's one million. And for a

(01:31:45):
CEO of Lily A million probably is not a lot
of money. I'm just guessing, right, But they're chief science
officer who probably doesn't make what the CEO does. Spent
six hundred and forty three thousand on his A pair
of board members also boxed Docks, as did another executive.
So Lily, I think he got down to around six

(01:32:05):
twenty five last week and it bounced back above seven
hundred this week. But again, that's a very very difficult space.
One of the things that Todd alluded to was a
you never know what Trump's going to say. I mean,
Trump could could come out and say he'd been talking
about tariff's on pharmaceuticals, tariffs on drugs and being as
much as two hundred and three hundred percent. I mean,

(01:32:26):
you don't know. That's and they want drug prices.

Speaker 6 (01:32:29):
On drugs, and the lower prices on drugs. That's way
Lily got hit hard.

Speaker 3 (01:32:33):
Thank you. I was just going to mention that lower
prices on drugs.

Speaker 5 (01:32:36):
The terriffs have hurt home home construction space as well,
like a lot of uncertainty of how it's going to
hurt that space. That ETF though it b this week
five and a half percent higher.

Speaker 3 (01:32:47):
It keeps going there, it keeps going higher.

Speaker 5 (01:32:49):
Yeah, found a bottom and then starting to climb over
the last several weeks. And Low's and Home Depot will
report next week, so that's going to be a little
bit of insight on how the actual con umor is
paying for things. But it seems like we might be
getting into a place where people start to entertain selling
their home. I if we get into the high fives,

(01:33:11):
do people start maybe not coveting the interest rates so much.
I mean, we know that's one of the back wild
cards and all of this is if you do get
lower interest rates, you will get a flood of people
that then are more willing to go into a new house.
How does that impact the entire housing sector. That's going
to be an interesting thing that you're going to see
over the next two to three years.

Speaker 3 (01:33:30):
Over the last twelve months, though inventory has increased dramatically, dramatically,
you can't drive down the street with us here it
for sale sign. And I don't see any old signs.
I don't see a lot of soul time.

Speaker 6 (01:33:41):
I see a lot of price cuts on Zillo and
stuff much like constantly the similar houses too.

Speaker 5 (01:33:48):
And if rates go lower, you'd think there'll be more
even more supply.

Speaker 3 (01:33:51):
Right, and you want to sell your house dealing, but
you want to sell it at the all time high, right,
which is where it was now. But now there aren't.
They aren't out there like that unless you're in a
hot area. And some of the hot areas that we
know about in town here where houses very seldom come
on the market, and when they do, they sell fast,

(01:34:11):
and those are still hot areas. Those are not ever
going to be not ever, those are generally not going
They are always going to be hot areas. A limited
amount of houses in a certain style in a certain
part of town, without mentioning parts of town it's.

Speaker 5 (01:34:27):
Too, is not going to be a hot area this weekend, Dave.

Speaker 3 (01:34:30):
It's going to be better, huh. I just wish we'd
get some rain, and so this lack of rain. I've
left here for fifty three years, and this summer is
exactly like last summer, and I don't like it. This
record high temperature is five to ten degrees above normal
every single day with no rain. I used to stress

(01:34:51):
over it. Now I say, hey, if we're gonna become Yuma,
we're gonna come Yma. Right.

Speaker 5 (01:34:55):
I guess the market's just taking all the rain from us.

Speaker 3 (01:34:57):
Yeah, he's making it rain. You are so funny. You
are so funny. We appreciate your taking time to join
this on Sunday morning for the Comedy Hour with Todd
Clig Jr. Don't forget about the seminar coming up the
guys who are taking names. It is totally free, non.

Speaker 7 (01:35:17):
Threatening, totally free, but space is limited.

Speaker 3 (01:35:21):
You're gonna get free lunch. You're gonna get a look
at the template that we used to do financial finance,
just to get an idea of how it would look.
Nothing to do with you specifically, but just how it
will look look in general. I think it would be
well worth your time and you get a free lunch
out of it. We all want to be happy, and
of course we all want to be healthy, because if

(01:35:42):
we're not healthy, we're probably not happy, and a Greenberg
financial we're really trying to be is probable. See you
next week

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