Santa Clause Rally and a Hawkish Fed: What It Means for Your Money!

Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Good morning everybody. This is that time once again, Sunday morning,
eight o'clock right here in seven ninety knst. It is
the Money Matter Show with Dean Greenberg and arrest of
the group from Greenberg Financial Group to bring you the
best insights to what we think is happening in the
markets and as money managers and how we're investing, what
we're actually looking for and doing. It was not a

(00:23):
good week obviously until Friday, but markets were down for
the week. That was down over two percent, The SMP
was down over two percent. Now as that was down
just under two percent, Russell two thousand down almost five percent,
and the equal weighted SMP was down three percent, and
those were a little bit worse going into Friday. What
caused all this, The cause of this was the Federal

(00:45):
Reserve lowering interest rates into the face of possible inflation.
Now they consider, oh it's only a quarter of point,
it's not a big deal. We're trying to get to normality.
But well, hotter than we expected. Remember the CPI, the
PPI numbers came in hotter than expected. The PCE number,

(01:08):
their inflation India that was down was a little bit
less zero point one percent that came in on Friday.
But at the end of the day it was confusion
because at the end of the day Powell says we
might not be able to lower rates as much as
possible that we thought going into less. You remember this year,
they thought there was going to be six, then four,

(01:29):
we got two. Then they were talking about four or
five next year. Now they're talking about two. They're always
wrong and that's why my respect is with the people
that actually pull the trigger and try to invest to
make money, not the people that just blurbout things out
of their mouth and say what they think is going
to happen. It's a lot easier to talk, it's a
lot harder to do. And remember that as you're investing,

(01:51):
either your own money or whoever your advisors are, and
what you're trying to do, it's all about the allocation,
and it's all about mitigating risk, and it's all about
under standing cords. In effect, this is the Moneymount of
Show and it's brought to you by Greenberg Financial Group.
Greenberg Financial Group is both the registered investment advisory and
a broken dealer registered with the SEC. Members of CIPIC

(02:12):
and members of FINRA.

Speaker 2 (02:15):
On the show, we.

Speaker 1 (02:16):
Talk about different products and different strategies. We also have
our own ideas, our own thoughts. We differ, we tell
you the way we think it is. We can differ
and still communicate and get along. But it's all about risk.
What is your risk tolerance? What is your risk ability?

(02:37):
These markets are going to get volatile. I was telling
you this for the last few weeks. Since markets are
going to get volatile. Sony was too high. It will
pull back. I'm not sure that it's done pulling back,
but I thinking it might have pulled back enough right
now for the Santa Claus rally. We were done pretty
hard on Thursday, and then Friday we came in. We're down,

(02:58):
and then we rallied back and we ran higher, then
we pulled back at the end. There's a lot of
different things going on there, some shortcovering, some other things.
But we'll see what happens. Now in the end, we'll
see what happens, because I think that we can see
kind of see some buying come in. Remember, it will
behoove every money manager who put all the lot of
their money in in the month of December to get

(03:21):
this market back up to where at least they were
buying it before so they can go out in the
year on good terms. And obviously the higher their portfolios
are the biggest. Their bonuses are no different than everybody
that manages money. The more money we have onunder management,
the better off we do. So we always want to
see the markets increase for us as much as possible.

(03:45):
But the great thing is we're on the same side
as you, because if you make more money, we make
more money. You don't make as much money, we don't
make as much money. It's that simple, And that's what
I appreciate about how we manage money at Greenberg Financial Group,
and how I appreciate eight others that do the same thing,
same side, same way. Press the button, we decide allocations,

(04:08):
who and how and make them set for everybody else.
Like I said a little earlier, institutions, money managers, people
putting money into mutual funds piled in in the month
of December believing their markets would rally right to the
end because they weren't coming down. We were surprised by

(04:30):
how deep the markets were, how fast they fell on Thursday.
But I really wasn't that Wednesday, I should say, And
then on Thursday when it reversed that surprise because, as
I always say, if you're having a party, people come
between six and seven o'clock. They all walked through the

(04:53):
same door. But there's a problem and everybody needs to
leave that party at the same time time. Not everybody
can leave the through that same door. They go out
the back door, they go out windows, they jump off
the roof, they get out. If there's a problem inside
that party, think about that. It's easy to walk in,

(05:14):
but if everyone wants to get out at the same time,
you're not going out the same door, which is what
created the sell off we had last week. I'm hoping
that it got sold off at least on a short term.
I believe we can rally into the end of the year,
and then I'd be very cautious coming into January seeing
how high we are because valuations haven't changed, inflation hasn't changed.

(05:38):
We gave back almost everything from the Trump bump. We'll
see where we're going. Great ideas, but as we saw
last week, Congress is still dysfunctional. Congress still can't put
together a spending bill. Congress still can't understand they got
to stop spending. Congress still can't put together a budget,

(05:59):
and they want to keep raising the debt limit both sides.
We cannot do that. We're thirty six trillion dollars, they say,
in debt. That's our debt, thirty six trillion. But we're
one point a trillion budget. We don't bring in enough.

(06:21):
We need to stop spending. And you can listen to Pelosi,
you can listen to Shuma, you can listen to every
freaking Democrat that's out there that tells you, oh, they're
being run by the richest man in the world. He's
telling them all to do. I'd rather be told what
to do by the most successful man in the world
than a bunch of government officials that tell you they

(06:43):
need more government. That they tell you they need more money,
that they need to keep doing it. The government is
the one, according to them, that will make everything work. No,
we are the ones. The people are the ones. The
people the ones that have to go to work. The
people are the ones that make the money. The people

(07:04):
are the ones that spend. The economy is about how
much money we can spend without putting ourselves in too
much debt that we can't afford it. Well, the government
should think of the same thing and finally, after all
these years of being alive, I am so happy to
see two people leading the charge to try to go

(07:24):
ahead and get the government working as a business. So
where's it start. It's very simple. It starts with spending
and cutting the fat. It starts with these bloated audits
that nobody can even tell you where the money is

(07:46):
going to in the defense, DoD and Doe and everybody
else that's out there. It will start with people actually
having to go to work. It will start with people
that have to go ahead and either go into those
buildings or get rid of the office space that we
spend billions of dollars on. It will start with the
big and start and end with the small. It will

(08:08):
start with people complaining that they are getting fired if
they don't want to go to work. Oh, poor them,
poor government officials. They want to work from home. Well,
you and I got to get up, go on the bus,
do whatever we got to do to get to work,
drive our cars, pay for cars, do the things we
need to do. Yes, there are some jobs you can

(08:31):
be at home because your territory is so big and
that's your home base. But even those people have a
home base at some place where the home office is
that they.

Speaker 2 (08:41):
Fly to every once in a while.

Speaker 1 (08:45):
The government officials have the nerve to put a pork
belly filled build together to go ahead and pass for
the spending. I'm appalled at this time that they don't
get it. The Democrats don't get it. This is what

(09:05):
they've been doing the entire time while they've been in power,
putting stuff in the bills just to pass them to
go ahead and keep.

Speaker 2 (09:12):
Spending and spending and spending.

Speaker 1 (09:15):
Going ahead again, what was another one hundred and eighty
five billion or four hundred billion dollars worth of student
loans for forgiveness again under the usper under the umbrella,
saying these are officials that were supposed to get it.
They are public officials, public workers, public servants, all the stuff.

(09:39):
I want to see it, prove it. And have they
been paying on time or they've just been not paying
at all?

Speaker 2 (09:49):
Okay, I don't.

Speaker 1 (09:50):
Want to reward anybody that hasn't kept their payments up
at the minimum that they're supposed to. And just because
it's overwhelming, saying oh no, you don't have to worry
about it, while other people working their butts off to
try to pay their credit card bills or other bills
to keep their credit intact. It's not fair, and it's

(10:11):
about time. We're going to see fairness right across the board.
You're gonna hear people moaning and groaning. And I promise
you everyone that's moaning and groaning are the ones that
don't want to work, that have had it easy and
continue to get a paycheck. Now they are government workers
that work their butts off, that are great at what

(10:32):
they do. They'll have to go to work and they'll
probably enjoy it because now they will have the opportunity
to earn the right to move up and make more money.
Because the others will go ahead and pretty much quit
or retire themselves, depending on how old they are. It's

(10:52):
time to streamline. It's time to streamline our tax code.
It's time to streamline how we pay our taxes. Intea,
they are going ahead and putting eighty five billion dollars
to the irs or whatever they gave to them. It's
time to streamline it so you and everybody else can

(11:13):
go ahead that have simple tax returns and you send
them in and pay everyone's Oh they can is complicated? No,
you know what, it's not complicated because you see in
the spending bill, the Democrats and all put together a bill.
The first one that goes through fifteen hundred pages. The

(11:34):
second one that goes through is about one hundred and
sum odd pages. You can simplify things if you want to.
You can simplify things if you just try. And of
course everyone's gonna say they can't do this and they
can't do that. Well, I'll of rather the people saying
you can't do this and you can't do that are

(11:54):
the ones that are sitting back, while the other ones
that have done are the ones gonna get it done.
You're gonna here so much, You're going to see so
many things happening, and what you're going to do is
try to understand that we're moving in the right direction.
It's time that we simplify. It's time that we make

(12:15):
the government smaller. Use the government for protection, use the
government for disasters, use the government for what it was
supposed to be for.

Speaker 2 (12:25):
Give the rest of it to the states. Education should
go to the states.

Speaker 1 (12:30):
Then there's nobody we can blame in Arizona that we're
number forty seven, forty eight in their country. When we
got a few pockets of schools doing very well while
the others, the rest of them are just maintaining mediocurity
needs to go away. We need to be strong again.

(12:53):
I'm looking forward to it, and I think you are too.
I think it's going to be quite a difference. The
things I start seeing, too, is that the media is
starting to kind of come more to the center. Let's
not beat him up so much anymore. Let's see what
he can do, because you don't what they were so long.
Look at the ratings. Look at the ratings on CNN,

(13:14):
look at the ratings on MSNBC. Look at the ratings
on how many less viewers they are seeing right now
because people who realize they were lied to. This whole
thing with this Biden administration was a bunch of malaukeey.
He wasn't doing well for a few years, and they

(13:35):
tried to stand them up and prop them up as
if well, we were Bernie's whatever. That was the one that,
uh would Bernie that at the Hamptons. Okay, The bottom
line is someone else is trying to run the country,
and we don't know who it is. At least when

(13:55):
Trump's running it, we know who it is. If there's
ideas coming from Musk we know it's coming from them.
If it's coming from other people, we know it's coming
from them. Because you know why Trump tells us everyone
says it's about him, his narcissism. He doesn't like women,
he doesn't like this, He treats this bad. It's all
a bunch of lies from the beginning to the end.

(14:18):
And it's a good thing now as you look back
that maybe he had those four years off and we
had a disastrous four years in order to come back
and give someone a chance. Now, it's not gonna be easy.
I'll tell you that right now. Inflation's not going away,
but energy prices will have to come down, Regulations will

(14:38):
be cut, and that hopefully will pass on prices to
other people. Our supply chains have to come back. We
can't be in a situation where China controls our health
care essentials.

Speaker 2 (14:53):
We just can't.

Speaker 1 (14:55):
These things will all help the markets, will all help
the economy. I think there's gonna be a little pain though,
and it could start in the first part of the
year in the markets. So make sure you understand how
to mitigate the risk. Don't be all in. Until we
had that situation where the markets fall. Sometimes they don't
fall right away, as we saw. Sometimes it takes some time.

(15:17):
Sometimes it takes some mentality to change. And when it changes,
it goes down and then it pops it. Then it
goes down and pops it, and it goes down and
then it puts in a bottom time. Patience, we'll have it.
We've had a lot of speculation, obviously from AI stocks,

(15:39):
then to bitcoin and then to quantum computing ring. Remember
I'm not that old. Do we not remember what happened
in the late nineties into two thousand Okay, with the
dot com era, Oh my gosh, everything was dot com.
Everything went up until it didn't. Then going into two

(16:03):
thousand and eight, everything was great. Leverage do this, these
are great. Everything's great until it wasn't. Then we had
the pandemic, and then we had other things in between.
The markets need the ability to know that they're not
an underpinning of cards.

Speaker 2 (16:23):
Built on a deck of cards. Okay.

Speaker 1 (16:26):
The markets need to know that what's ever underneath it
that if we pull back one or two steps, there
got to be some men steps that we can go
ahead four, now, go up ten and then fall down
twenty And right now the highs and the lows in
the market are wide most so you're going to see volatility.
It's here to stay for a little bit. We didn't

(16:48):
have volatility for about two months.

Speaker 2 (16:50):
We just trickled up, trickled up, trickled up.

Speaker 1 (16:53):
Well, the Fed changed that and now there's no direct
path to understanding exactly what the Fed's going to do.

Speaker 2 (17:00):
So it's gonna go higher.

Speaker 1 (17:01):
Now, remember the Fed lowers interest rates, everyone thinks, oh,
mortgage is gonna come down, car loans are gonna come down,
personal loans are gonna come down, credit card injury is
gonna come down. Long they're all based on the treasuries.
The treasuries all went up and yield the ten years
moved back to over ten and a half four and
a half percent. That's what most mortgages.

Speaker 2 (17:26):
Are based on ten year treasury.

Speaker 1 (17:31):
And then you add to it, yeah, you know who
may who. What happens when you have a situation. When
they were lowering the FED funds rate banks to banks
can borrow money less, So they borrow money less, which
means it's liquidity, which eventually that gets into the system
and allows for growth.

Speaker 2 (17:50):
But we have to be careful because.

Speaker 1 (17:51):
We have a good economy. GDP was higher than expected.
It was over three point two. That's good growth. So
it's a weird situation.

Speaker 2 (18:02):
That we have right now.

Speaker 1 (18:03):
When we have good growth, we have inflation, and we
have people that can't pay for stuff.

Speaker 2 (18:11):
So what do you do. We're gonna have to cut
spending to get a debt down. We get a debt down.

Speaker 1 (18:17):
We've got to get rates down so we can go
ahead and afford the debt the first In the first place,
it cannot keep going higher and keep higher the interest rates.

Speaker 2 (18:26):
Something will break.

Speaker 1 (18:27):
And when it breaks, guess what happens, We the people
pay for it, because then you'll have to be more taxes.
They'll have to cut Social Security, they'll have to they'll
put it, of course.

Speaker 2 (18:41):
More for medicare where they're gonna get the money. Don't
allow it to happen.

Speaker 1 (18:47):
Understand and listen, and don't let the people that are
against what's going on politically influence you to the point
that you get scared. Realize some pain is gonna have
to happen. We're gonna have to get or act together.
We're gonna have to put ourselves in position that we
start not spending so much, so we can see the

(19:09):
debt come down, then we can refinance the debt when
the interest states come down at lower rates, which helps
us all the way around. Now, do I think the
debt's gonna come back down to zero?

Speaker 3 (19:21):
No?

Speaker 1 (19:21):
Do I even think it's gonna come back down the
twenty trillion? Probably not, But it'd be nice if we
can hang around the twenty five to thirty trillion dollar range.
It'd be nice if we can have a budget situation
where we're not in a deficit every year. It'd be
nice that we don't have to raise the debt ceiling
to pay our bills every six months. And it would

(19:42):
be really nice if Congress would figure out how to
do this correctly, not just put themselves in a position
that they've voted for more pay the goal that they
stick that in that bill at this time while people
aren't able to afford things. And I understand it's been

(20:03):
ten years, eleven years, maybe longer, Okay, so supposedly, And
if that's the case, then how do they co into
Congress and end up so rich when they come out
If they're not making enough money, where and how are
they getting their investments that they can go in with
maybe a few hundred grand to come out with ten

(20:24):
twenty fifty hundred million dollars.

Speaker 2 (20:27):
Can you tell me that, please?

Speaker 1 (20:29):
Why hasn't anybody ever investigated that? Why do you go
after the rich people that actually took a risk and
started companies and made billions of dollars because what they
did is what people wanted. Why hasn't the media, the
journalists ever looked into why our congressmen makes so much money.

(20:53):
Why haven't we afford back and said we want term
limits that would change at all. Why do they ask
for more money when already they got the best, best
pension plan in America and they only have to be
in what.

Speaker 2 (21:10):
Two times?

Speaker 1 (21:12):
They get a full pension if they're re elected, and
they have two terms, the best medical care forever, much
better than anything we have. But yet they want everybody
on Obamacare. Okay, they get people that you know, we'll

(21:32):
always have protection. I get it during the lime light. Well,
we all are in the limelight for some reason or another.
We pay for their protection. We pay for so much
that we don't know. And then when we want protection
for the United States of America by not letting illegals

(21:53):
in and start doing something, they don't want that. But
yet they'll put guards in front of their house, and
they'll put fences up around their house. But yet we
can't do that as a nation. That's all changing, and
basically forty days, how about that, it's all changing for

(22:14):
the better. Cut the fat out of the government, get
a better budget, go ahead and stop spending. Spend on
what we need, not what they want. You ever hear that?
How many times have your parents always said, spend on
what you need, don't what you want.

Speaker 2 (22:33):
You might want a Rolls Royce, but go get a Honda.

Speaker 1 (22:38):
You might want to live in a two million dollar home,
but all you can afford is a five hundred thousand
dollars home. Live in that home. You want more, earn more,
and live within your means. I know a lot of
millionaires that live within their means and never made over
seventy five to one hundred thousand dollars. They live within

(22:59):
their means, they don't overspend, and they spend on what
they need, now what they want. So as we come
into this and we start moving forward to the end
of this year, I believe we can have that Santa
Claus rally. Probably, I mean, you know, maybe we go
up back to close to the new highs or close

(23:20):
to who knows, it's not that far away, maybe two
or three percent, but it's better than going down. I
do think there's the aged money, money managers, institutions, all
those people want to see you go highering to the
end of the year. If it doesn't go high and
goes down, then I think after the first of the
year we go higher.

Speaker 2 (23:37):
But if we go higher, I'm going to.

Speaker 1 (23:39):
Keep telling you this every week, be cautious going into
the next year. If we're close to the new highs
or made a new high or somewhere around there, because
then I think that you'll see profit taking. A lot
of people don't want to take their profits this year
in a lot of areas because obviously they don't want
to pay more taxes. So let's see where we're at,
look at what's going on. Get excited about what's going

(24:01):
to happen, but don't expect everything to be great right away.
We're gonna have to have some pain before we have
the pleasure. That's the way it's gonna be. Open up,
get smart, learn everything you can so we all can
be in this thing and come out on the other side.

Speaker 2 (24:19):
Very happy. Do appreciate you all listening. I'm gonna take
a show a break.

Speaker 1 (24:22):
When we come back, we have everybody here to talk
to you about what's going on.

Speaker 4 (24:28):
Welcome back to the Money Matter Show. My name is
Sebastian Borseni. I'm here with Todd Glick Junior, David Sherwood,
Dylan Greenberg, Dean Greenberg. We got the whole crew here today.
Before we go further, I'm gonna get into the quick disclaimer.
The show is sponsored by the Greenberg Financial Group and
you can listen on seven to ninety KNISC or iHeartRadio.
The show discusses different investment products and strategies. Every product
and strategy have some type of inherent risks, and we

(24:49):
strongly to strongly encourage our listeners to properly understand the
risk to determine whether to buy, sell, or hold. The
show has been on air for over thirty years. The
Greenbrig Financial Group is registered with the SEC and a
member of finer CIPIC. This is their website at Greenberg
Financial dot com for some more information.

Speaker 2 (25:03):
So fast it was almost like one of those car
dealer things, you know.

Speaker 5 (25:06):
Disclaimers after medical medical commercials.

Speaker 2 (25:10):
Amazing if you take this drug, you will die away.
If you take this drug, you will no longer have
elbow pain, but it could kill you. Well, really, I
don't think most people.

Speaker 3 (25:23):
Most people don't know that we're one of the only
countries that allow advertising for pharmaceutical drugs on TV.

Speaker 2 (25:29):
My father was a law My father was a fourth
generational lawyer, and he said, when lawyers are given the
right to advertise, that's going to be the end of
the civilized world. And there you go.

Speaker 3 (25:40):
Well, all of our billboards and buses are definitely taking up.

Speaker 2 (25:45):
Well, considering it's illegal to incite a lawsuit, and isn't
that kind of what they're doing every day on the air.
Never mind, do you have a problem? I think I
think my father planted that seed pretty deep. Uh, there
to uh the news. This past week was the Tucson Marathon,
where our Todd Glick placed eleventh in the entire.

Speaker 5 (26:07):
Field, he got third in your age group.

Speaker 2 (26:09):
And our Dylan Greenberg had his best half marathon time.

Speaker 5 (26:14):
Ever sixteen miles until I crashed out.

Speaker 2 (26:16):
Well, we're not going to talk about that. I'm going
to talk about that. I wasn't eve gonna go there.
I was gonna say you did the half marathon seventeen
minutes faster than you'd ever done it. I did, So
there you go. I died. I'm not sure what these
two are running from, but they're running from something. What
he thinks about it.

Speaker 3 (26:31):
Demons got the Boston Marathon next year, looking forward to that.
So yeah, I got Boston and Berlin, Germany next year
for marathons. It would be a fun year.

Speaker 2 (26:41):
Pretty cool, Pretty cool. The commitment and the dedication that
both of you have put into this is pretty incredible.
The DAL had a ten day losing streak in last week.
With a fifteen point rally on a Thursday ended the
ten day losing streak, which is the longest losing streak,
longest consecutive Lizary streak in fifty years exactly. So what

(27:04):
does that tell you? Well, what it tells you is
that the Dow is a market cap weighted index, and
the most expensive stock in the Dow is United Healthcare,
and it crashed after the shooting. It just simply lost
twenty percent of its value, and that weight on the
Dow every single day. So it's not like, oh man,
this is really sending the signal. It's because of the

(27:27):
United health.

Speaker 3 (27:28):
Yeah, but also we saw equal weighted S ANDP that
was down almost eleven maybe twelve straight days until the
Thursday rally, So you did see that the overall market
was not doing as well as the top seven stocks.

Speaker 2 (27:41):
And pees are high. The market is richly priced, one
might say, priced for perfection, right, and perfection is not
something typically going to see rough. It was interesting because
it was kind of a quiet week except for Wednesday
and Friday. Wednesday was the announcement. Dean talked about it
in his monologue where the Fed said they're going to

(28:03):
lower race by a quarter. We all kind of wonder
why that's happening. But then they said they may be
done for a while, and the market did not like that,
which is shocking since we've been talking about that for months.

Speaker 5 (28:14):
Yeh, yeah, that's what it came down soon, true, but
it seems like they changed their narrative quite a bit.
So it's something that you don't for five Yeah, well
they went down. They said they're originally going to do
four cuts next year for twenty twenty five and outs too,
so that's what the markets didn't like. But I mean,
they could come back out next year at any moment.
And say we're going to actually do more.

Speaker 2 (28:35):
One of the biggest problems for the market historically has
been interest rates. If you're in a period of rising
interest rates, it makes it tough for stocks to gain ground.
The rebound on Friday, which was dramatic, bounced eight hundred
points after selling off eleven hundred points on the Dow
on Wednesday, bounced eight hundred points on Friday, and even

(28:58):
though interest rates it really didn't drop that much.

Speaker 3 (29:01):
I think you're exactly right. Ever, since the FED started
their rate cutting cycle two meetings ago, where they did
say there was going to be four rate cuts in
twenty five, you know, rates were doing really well. The
market had never really stopped its tear from there. All
of a sudden, since that cut, rates have gone up
full hundred basis points on the bond side. And what's

(29:22):
that telling us is the bond market saying, no, you
weren't going to get those rate cuts that everyone was expecting.
They only had two. So the Fed kind of just
reprice itself to what the market already thought. The bond market,
but the stock market, you could see a huge divergence
because normally the rates as they go higher, you see
stock valuations go lower. But there wasn't that wasn't happening
for this last month of trading. There was that there

(29:45):
was this variance divergence that was occurring. So eventually we
had to see the equity markets come to realization that
the bond market was right. I mean, maybe the bond
market was going to be wrong, right, but we saw
this week that they were right. The Fed tailored to
what the bond market it's been saying for several weeks,
and then the equity markets just said, okay, well, we
can't play this game anymore. We know it's reality. We're

(30:06):
only getting two. We can't act like we're getting four anymore.

Speaker 2 (30:10):
And we said before, if there's a disagreement between the
stock market and the bond market, you want to watch
the bond market because it's three times the size of
the stock market. Oh you're you're generally going to see
that be a little bit more accurate than than stock.
So it was a good harbinger, and.

Speaker 3 (30:25):
On Wednesday rates did not increase drastically. It was almost
as if, yes, this is where you should have been.

Speaker 2 (30:32):
It is, and but I think the tenure, if I'm
not mistaken, Todd got to the highest level I saw
since May.

Speaker 4 (30:38):
Initially it's spiked, Yeah, the.

Speaker 2 (30:40):
Highest level since May. So the mortgage rates are going higher, which.

Speaker 3 (30:44):
Is especially on Thursday. Rates increased more the next day
because of higher than expect the GDP came out and
this Friday they came down again.

Speaker 4 (30:52):
But it was the biggest loser this week, the Russell
two thousand, right, the small caps. Yeah, higher interest rates,
smaller capitalized company.

Speaker 3 (30:59):
They got hit hard on day after after that came out.

Speaker 4 (31:02):
Plus four point eight percent on the week.

Speaker 2 (31:04):
Yeah, it was. It was interesting. Now going into next week,
we've got an interesting week next week. Only a half
a day of trading on Tuesday, no trading on Wednesday,
very few economic reports, very little to move the market.
The one thing that can happen, and we've seen that
before though, is you're going to have very light volume
and you can get some pretty dramatic moves when you

(31:26):
have a light volume. If someone gets in there and
decides they want to move it one way or the other,
you can you can move it pretty dramatically with light volume.

Speaker 3 (31:33):
Especially with all the leverage products that are available to
people these days. Leverage just increases volume, and if you
have a lack of volume on a certain day, you
could really push a market one way or the other
if one side takes.

Speaker 2 (31:46):
Yeah. Traditionally the Christmas week is quiet, light volume, not
a lot of fluctuation.

Speaker 5 (31:52):
It is an interesting year though, because Christmas just middle
of the week, so you could we got two full
days Thursday and Friday might be more volume that day.
It is all right well because also, I mean then
New Year's is the next day. You got two days
that week and the year's over. So I was looking
day as a trade. Well, five and a half days
the trading left in.

Speaker 2 (32:08):
The yearly right. I was looking at the bowl games
the other day. I was talking to my wife and
I said, there's a Bowl It's a great time of
the year for your a football fan. There's a bowl
game every single day for the next three weeks. I said,
except next Wednesday. She goes, it's Christmas game. You got
NFL Day. You do have NFL great which speaking of
that's on Netflix exclusively. Ye are the games both on Netflix.

Speaker 5 (32:31):
Both games are on Netflix. So Netflix is really getting
into live sports. They started with the Paul Tyson fight
earlier this year. They got the NFL games on Christmas Day,
and then they just got the rights to the Women's
World Cup for the next World Cup in the one
of twenty thirty one.

Speaker 2 (32:46):
Christmas Day has always been the exclusive territory of the NBA.
They always have five games on Christmas Day. That's kind
of almost their kicking off the season, even though they've
been playing for a couple of months. That's kind of
the official start to the NBA sea is Christmas Day.
I wonder what they think about having two NFL games, King, Yeah, yeah,
I mean, you're gonna watch NBA if NFL is on, well,

(33:09):
if you're an NBA fan, Yeah, but no, I'm probably not.

Speaker 5 (33:12):
But I would watch NBA on Christmas Day when NFL
wasn't ONFL.

Speaker 2 (33:16):
Absolutely, we all, we all would. But I'm watching the
NFL for sure. This is the first I don't think
there's ever been an NFL game on Christmas Day. That's
Christmas Day was Sunday, that's I think. Wait, no, I
think last year there was might have been. It was
like the first year.

Speaker 5 (33:30):
It's a new thing, but it's it's interesting with the Netflix.
I mean, they're trying to get into the live sporting world.
It's completely new. I mean, they had one hundred and
eight million people watched that Tyson fight.

Speaker 3 (33:40):
Yeah, when we were when the Tyson Fight came on,
we talked about on the show how Jerry Jones gave
an interview during the event and said, we're very excited
about the future of NFL Netflix working together and Jerry
Jones is the most influential owner in the NFL. Yeah,
so there was definitely setting the stage for what's to come.

Speaker 2 (33:58):
To be able to make vacation ship.

Speaker 5 (34:00):
People gonna join Netflix because like you have on Thursday
Night Football, if you're a huge football fan, you have
to have Amazon Prime, you have to have Peacock, you
have to have a lot of the streaming services. So
non Netflix is into the live two hundred and eighty
two million subscribers.

Speaker 4 (34:12):
Think it could really help, really help the global adoption
of football.

Speaker 5 (34:16):
Well, I mean if they got the Women's World Cup rights,
and then if they somehow get the men's World Cup rights,
it's gonna exploit it too.

Speaker 2 (34:21):
So they're really getting into the live. Gonna be interesting.
How does that work then on Netflix? When there's a
break in the action, what do you mean a break?

Speaker 4 (34:30):
Oh, like a commercial time out?

Speaker 2 (34:31):
Yeah, time out? We would go to commercial, Right, it's.

Speaker 5 (34:34):
Probably gonna be like red Zone where they havn't like
a constant guy in the background talking.

Speaker 3 (34:40):
Yeah, or they do just have ads, and that's an experis.
I mean, but if if you're already, if if a
sporting team is already used to having these breaks, they're
not gonna just all of a sudden get rid of them.

Speaker 2 (34:53):
Oh no, they're gonna have the break.

Speaker 3 (34:54):
Right, So if they're gonna have the breaks anyways, who cares?
I mean, would would you really want to watch a
live stream of some no action going on?

Speaker 2 (35:03):
Yeah? Watched, like said, there has to be somebody talking.
But the Netflix with commercials, that's a whole different service.
That's a much cheaper. Yeah, I know.

Speaker 3 (35:13):
But in terms of live sports as a different it's
like live sports and pay per view. That's two different things.

Speaker 2 (35:18):
I get what you're saying about.

Speaker 5 (35:19):
I think I still think Netflix will find a way
not to have commercials with a non ad supported subscription.

Speaker 2 (35:24):
Well, I guess we're gonna find out.

Speaker 3 (35:25):
Yeah, I mean, because pay per view, that's that's what
the Tyson fight was. There was no commercials. There was
just a straight seat through kind of like how the
the the roast was for Tom Brady.

Speaker 4 (35:37):
I didn't watch the Tyson fight, but I heard that
it was like just buffering a ton, Like, is it
gonna be able to withstand that?

Speaker 2 (35:43):
Many people talk about it? After this break, We're coming
upon a break and we'll be back with the next
segment of The Money Matter Show. Thanks again for listening.

Speaker 3 (35:51):
Welcome back to The Money Matter Show. My name is
Todd Glick. I'm here with Sebastian Boards, seeing Dylan Greenberg
and Dave David Sherwood. We were talking a little bit
about Netflix before the end of last break, about how
SeaBASS had the question of buffering with that I personally
saw maybe like two different instances during the Tyson fight.
We're a buffer, but ultimately, yeah, as Internet gets better,

(36:12):
I'm not.

Speaker 2 (36:13):
So you didn't think it was too bad on the
Tyson fight because I heard a lot of complaining about it. No.

Speaker 3 (36:16):
I literally used an illegal site that streamed Netflix and
it worked fine.

Speaker 5 (36:22):
Yeah, But if we were talking in the break too,
it's just kind of comes with it. Amazon Prime took
over Thursday Night Football and there was a bunch of
issues with it when it first started, and that was fine.

Speaker 2 (36:32):
That reminds me of the Facebook post I saw last week,
I think you guys where it said I'm really concerned
about Trump coming and around you at my mother who's
here illegally. Her address is my mother in law? Was
my mother in law in law address is?

Speaker 3 (36:46):
I think something to point out this week is the
ten two year spread got deeper, which shows that the
economy is strong. The GDP report that came out on
Thursday was way higher than expectations. We're doing room, really,
really well in terms of the economy, and I think
that's why stock valuations have kept so high for a while.

(37:08):
The earnings have been good, yes, you know, and you're
seeing that again with the GDP report for quarter quarter three.
So I think the expectations is the Fed had to
realize the economy isn't slowing down. Here the labor market, yes,
it's cooling off, but it's cooling off at a very
slow pace. Inflation, it's a little more sticky than they expected.

(37:29):
But you do have a slow down in housing and
that's going to show itself in the next couple months
with inflation numbers as they get reported, because we know
there's a little bit of a lag there. So that
I think gives them a little bit of a cushion
to do this rate cut, but then hold until maybe
the March April and reassess at that time.

Speaker 2 (37:47):
Yeah, well, you've said before that there's a four to
six month lag in housing, and we know that housing
is softer and you have to show it up yet,
so I think you're spot on. It's been a couple
months of softness and we don't see any indication of that,
so I think that you have to come right.

Speaker 3 (38:04):
But then this week, though, did you see at least
the existing home sales report did actually get a little
bit of a bounce up, and they do kind of
gyrate like that, so I got to see if it
contains I think.

Speaker 2 (38:14):
That's I think that's natural because there weren't any existing
homes for sale a year ago, so that that is
a higher note.

Speaker 3 (38:21):
Well, I thought it was a month over month, but.

Speaker 2 (38:24):
That wouldn't surprise me either, because you're seeing more and
more houses coming on the market every single month and
I'm not seeing any soul signs. And I'm not a realtor.
I don't have realtors living with me, so I'm not
an expert on this. But what I can tell you
is that my friends who are working in retail have
are so busy. Remember Target and Walmart a couple of

(38:45):
months ago said they were cutting the amount of product
that they ordered for Christmas because of the short time
from Thanksgiving Thanksgiving being as late as it can possibly
be right to twenty eighth, that they actually didn't expect
Christmas to be that And my friends who work in
retail are saying, it's just blockbusters out there. I don't know,

(39:07):
We'll have to see. Starbucks got a little in the
news to this week. Of course, Brian Nichols from Chipoli
became the CEO, which immediately caused a stock to spike
about and it's been hanging in there until this week
as about twelve percent now off of the high. And

(39:28):
I said, it is the honeymoon over for Brian Nichols.
Ninety eight percent of Starbucks employees voted to strike if
contract negotiations broke down. And three of the stores and
I couldn't really find a reason for this, but three
of the stores have actually gone on strike. They have about.

Speaker 4 (39:46):
You couldn't find a reason for why they went on strike.

Speaker 2 (39:48):
Why those three stores just randomly went on strike. But
this is the stock is currently the lowest oft been
since Nichols took over. It jumped from I'm trying to
think of around seventy jumped up to maybe ninety five
to one hundred. Now we're back in the mid eighties.
Another one that had a little reality check this week

(40:08):
was Tesla. You know, Tesla nearly doubled since the presidential election.
We're all sitting there, scratcher has going what and the
heck is going on? Tesla is not Musk, you know,
t SLA symbol is not Musk. Musk is involved in Tesla. Obviously,
he's involved in a lot of other things. So if
you think that President Trump is really going to reward

(40:32):
Elon Musk for all of his support, Tesla may or
may not be the way to play it.

Speaker 5 (40:38):
Yeah, And I mean that stock is just so vital
to the one down day we had. It dropped for
forty points. Yeah, but it's still at four to forty
one before the election.

Speaker 2 (40:47):
Was that like two one. The wild part about that
is miss Misszoo, which is an Asian money manager who's
active in the United States. They decided to take the
stock from a hold to a saying the Tesla should
benefit from expected regulatory changes. Stock then drop ten percent

(41:08):
the next day, drop ten percent the next day, Like okay,
you really think that's where we want to be. I
just I'm always perplexed at analysts to have a stock
as a hold and then it doubles and they go
from hold to buy. That's to me, it's just like
that's a foma always they got.

Speaker 5 (41:29):
Sometimes they have price targets that stocks, say the stocks
at five hundred dollars a share, their price target was
at two hundred dollars for a long time. And then
they say, I got a price target increase to two
fifty a share.

Speaker 2 (41:39):
Yeah, no you see, Oh thanks, yeah it's to five hundred,
but thank you five herd dollars stock. But now the
price target's two fifty.

Speaker 3 (41:44):
Yeah, we saw this week anything that had a lot
of risk. And another way to measure risk for people
who don't know this term, it's called beta. Beta refers
to a stocks or any asset class movement to the
broad stock market. So the stock market went one percent higher,
and you have a beta of two, you would expect
the stock that you're that has the beta of two

(42:06):
go up two percent. If the market goes up one
percent and so high beta stocks were the ones that
went down the most this week.

Speaker 2 (42:13):
And we saw that in bitcoin, right, anything.

Speaker 3 (42:16):
That had a lot of volatility embedded into its asset,
it was going to go down big this week because
there was a lot of selling, and that selling exacerbates itself.
We saw it in bitcoin, I mean, we saw it
in the nuclear spaces. We saw it in even VRT,
which we've been talking about is one of the best
stocks of the last year because of the cooling for

(42:38):
the for the they also got hit hard off their
all time high. So anything like that, I think another
interesting story, and this is with what we had last
week of the Google quantum chip coming out and all
the buzz about quantum and all what could be and
what people need to realize Quantum is still very very
far away, I mean at minimum three years away and

(42:59):
the technology that's that's a long time, long time, and
it's likely more like five to seven years before any
actual practical use is going to be able to be
found upon it. So these we've seen a couple of
companies now with the word quantum embedded, and the Sea
Bass talked about this with Quantum Energy drink that you know,
went up almost tenfold, one thousand percent. I went up

(43:22):
just because they changed their name to Quantum Energy really,
but they're so energy drinks. And so there's a couple, Yeah,
there's a couple of other quantum companies that I looked
at who had you know, thirty nine employees. That was
up two thousand percent. One other has two hundred employees,
is up you know, five hundred. There's a and then
none of them are making money, like zero dollars in revenue,
and they're actually losing money, so you know, zero dollars

(43:43):
in revenue, absolutely none. And we talked about this also
a couple of months ago with the Trumps. You know,
I don't even remember the name of it anymore. True
social yeah, social right, And that was you're trying to
buy this because it has the buzzwords.

Speaker 4 (44:00):
Here's a better analogy, uranium, right, small modular reactors, all
those oakload they were going crazy about a month or
two ago. Why because right, But in terms I'm like,
I'm going to start using them. We're still far from
practicality of.

Speaker 3 (44:12):
This, yes, right, oaklow has actual like yeah, EPA approvals
to get started on projects. We're talking about theory still
in quantum in quantum wantum st it's literally theory. I
mean what they did with Google last week was just
being able to solve a computational error, right that no
other computer was able to do it. That's not actually

(44:32):
used thing that doesn't do anything for anyone except for really,
you know, maybe the geeks that know what that means.

Speaker 2 (44:38):
Well. I mean there's a difference between investing and speculating.
I mean that if you want to speculate one of
these like like you mentioned quantum energy, right, why would
a person jump into that While they jump into that
in hopes they could make ten cents thirty cents on
ten thousand shares and get out. I mean, that's that's
the only reason. So be careful with those because they

(44:58):
run up and they come back down just as fast
as you see it.

Speaker 3 (45:01):
You saw it with the crypto coins. You know, you'd
have fart coin, you'd have pepegg yep you know, yeah,
or Peanut the squirrel, you know, yeah, all kinds of
and there's no there's nothing in that, you know. It's
like you said, it's just someone trying to make a buck.
And you can have the same thing in stocks just
because it's in the stock market. Doesn't mean and it's regular.

(45:22):
It doesn't mean it's like safe. Everything has risk.

Speaker 2 (45:25):
Know who you are as an investor, right, yeah, Know
who you are as an investor. If you're a speculative
day trader sitting in front of your computer trying to
grab ten twenty thirty cents on ten thousand shares, that's fine,
that's who you are. If you're a eighty two year
old retired person with sufficient assets to live comfortably, you

(45:46):
probably don't wanted to put twenty five percent of your
assets in bitcoin.

Speaker 3 (45:49):
But it's these type of examples that confuse people about
what the stock market is because when you talk about
what the stock market is, it's it's something that should
grow around eight percent to ten percent on average. Right,
It's not something that's going to double in a year.
So you have those people that come to you and say,
you know, what can you do with my money? Or
how quick can you double? It?

Speaker 5 (46:07):
Is?

Speaker 3 (46:08):
You should never have that idea in your head when
you're investing. That should always be for the long term.
If you're approaching the market as a casino, you don't
need us. Yeah, go to Vegas.

Speaker 2 (46:16):
That's something you do at home, and you can go
online and do it yourself, and that's not what we do, right,
and do you find it? Oftentimes people who have been
big real estate investors view the stock market as a casino,
and stock market investors view real estate as boring. You're
generally one or the other. You don't find too many

(46:38):
real estate people that have stock. You don't find too
many stock people that have a lot of real estate,
because it's just a totally different mindset. And both of
them are outstanding ways to accumulate wealth. They're just completely different.
And you don't look across the aisle and say, oh, yeah,
I think I've got seven rental Holmes. Now I'm gonna

(47:01):
take this one hundred thousand dollars I just got from
selling one of them and put it in bitcoins. That
doesn't generally happen. You are either either on one side
or of the fence or the other. We're coming up
on a hard break here. We'll be back with the
second half of the Money Meta Show after this break.
We thank you again for taking time out of what

(47:22):
is another gorgeous Sunday morning to listen to us on
the Money Metter Show. This weather's been unbelievable.

Speaker 5 (47:28):
Be right back welcome back. You're listening to the Money
Matters Show. My name is Dylan Greenberg. I'm here with
Todd Glick, Sebastian board Seeing, Dave Sherwood, and Dean Greenberg.
We'll listen to the second hour if you're just tuning in.
Last week, the Dow was down two point three percent,
the S and P five hundred was down two percent,
the NASDAK was down one point eight percent, Russell two
thousand was down four point eight percent, and the RSP

(47:48):
was down three percent, So negative week. Overall, the small caps,
which is the Russell two thousand, got hit the hardest,
but overall you're to date with six trading days left
in the year, the Dow is up thirteen point seven sent,
the SMP is up twenty four point four percent, the
Nasdaq is up thirty percent, the Rustle two thousand is
up ten and a half percent, and the RSP is
up twelve percent. So you can see the S and

(48:10):
P five hundred has doubled, the equal weighted SMP five hundred,
and the NAZAK is up thirty percent. So that makes
it think, okay, that's the big tech stocks in SMP
are the ones carrying it like we've been saying for
the last two years now and it continues to be
that way. But you can't see people get skittish if
they'll start to drop.

Speaker 2 (48:28):
Coming into the year, we are thinking was that value
stocks would outperform gross stocks, and they have not. They've
done well, well, that's the interesting have done well. They've
done way better than they did the in twenty.

Speaker 3 (48:40):
And also, Dave, I think value has actually done better
than equal weighted.

Speaker 2 (48:44):
Probably they've done better than the equal weighted So when
you look.

Speaker 3 (48:47):
At ego way to you, you know, it kind of
exkews it. I think value is up round seventeen.

Speaker 2 (48:52):
Yes, that's a very good point, Todd. Yeah, value has
done better than the equal weighted S and P five hundred.
So so maybe we were right kind of maybe.

Speaker 3 (49:03):
I don't know. I don't know about that. I think
the S and P is still going to outrun us.

Speaker 2 (49:07):
Like the text Dooks just killed it, you know.

Speaker 3 (49:09):
I think what's interesting is next week we kind of
have the end of the year. I don't think we'll
do our end of the year podcast then maybe the
following week. That way, we actually have end of the
year numbers. But uh, we have a lot of new
content that we just created. We went and recorded six
new TV shows. They're going to be released each and
every Sunday on KVOA in the mornings after Meet the

(49:31):
Press as well as at night after the ten o'clock news.
Last week Dean got a new show. This week, Dean
and Dylan will be on, and each and every week
you'll see the new ones on. I'll filter them through.
Sebastian's also posting them onto the YouTube page, so if
you're not able to catch it on the KVOA at
the time it airs, you can go to the YouTube page.

(49:51):
He'll be releasing them as they come out. And we
also always have our podcast that you can listen to.
If you miss the radio, you just go to our website.
We have a pod page and it connects you all
to our different podcast services. You could be listening to iHeart, Google, Apple, anything.
We also do a lot of content on our Facebook page,
so if you want to stay up today on stuff

(50:13):
like that, follow us there. But a lot of stuff
that you can listen to. Always have our Saturday shows
as well, and also we'll plug Jonathan, Sibylia and Mel
have a lot of good feedback from the shows they've
been doing about the state planning.

Speaker 4 (50:28):
They've been doing a show at eight o'clock on Saturday
mornings and eight thirty kind of cycles each week. But
I've been getting a lot of tracks in there.

Speaker 5 (50:35):
Got a lot of finance talk on the weekends. We
talk about the Saturday shows and the TV shows are
more educational, more macro talk because it's not current events
as much as because we record those once a quarter. Obviously,
the Sunday radio show that we're talking on right now
is more current events.

Speaker 3 (50:53):
I think people will really enjoy our new TV shows
we aired. We try to be a lot more cognizant
of what people really are caring about, what they need
to know about with the new administration going into the
new years, with all the fears that they may have,
and just some interesting strategies to think about. And I
think it's going to help a lot of people realize
the need for a financial plan. I think, Dave, you've

(51:14):
seen it this year, more financial plans than I think
any of us have ever seen.

Speaker 2 (51:19):
Phenomenal.

Speaker 3 (51:20):
So we've helped a lot of people understand where they
need to be, helped a lot of people spend more
than they thought they could which is always fun to do,
and helped a lot of people put together a plan
that they never had, you know, and obtain a peace
of mind they never thought.

Speaker 5 (51:33):
They could all different parts of life. I mean, we
have people come in recently, they are in their thirties,
we have people in their eighties. The financial plan benefits everybody,
regardless of what step you are in your financial life
and where you are and what you're trying to get
out of it. It is dynamic enough to help you
get set up, whether retirements in twenty years or you're
in retirement and you just need more of a direction to.

Speaker 3 (51:55):
Get I think a perfect example today I got a
call Friday. I got a call saying I want to
take a distribution out of my account? How do I
start that? And I was asking the client, what account
are you thinking about? They're saying this account, And then
I said, well, have we done a financial plan. You know,
they've been a client for a long time, but they've
never actually done the financial plan. So when you talk
about distribution, you have to look at the entire networth,

(52:18):
the entire financial plan, and not just maybe the things
that we're managing, but things that are outside of the plan.
And how they come into the picture and help you
with things. So the plan isn't something it's just about
the managed accounts that are with us right or the
accounts we would manage. It's about the entire picture of
someone's financial situation and how to get them most efficiently
to their goal. Some people it's how do I spend

(52:40):
the most for myself. Some people it's how do I
transfer these assets most efficiently to the next generation? Whatever
it may be. Even for business owners, how do I
successfully transfer the business to the next generation? How do
I plan for my own retirement? Is that going to
look like? There's a lot of what if scenarios there
that we can help you build out fantastic?

Speaker 2 (52:57):
Can you? Guys like I say, see a lot of people,
and I think probably right now you're only seeing one
or two a day, so, which is slow. So if
you're looking for a time to get in and make
an appointment during the holidays, I think it's probably your
best window. If you haven't done it, you're invited to.
It's free. We're not going to dog you for the
rest of your life until you gave in and become

(53:18):
a client, So feel free. It's a pre financial plan,
which is really really rare. Mini firm charge one two
three thousand dollars for those and you guys do a
great job. Yeah.

Speaker 5 (53:29):
In our offices, we'll be open each week. The next
couple of weeks. It's we'll have a half day on
Tuesday of the twenty fourth Christmas Eve, we'll be closed
on Christmas Day, and we'll be closed on New Year's Day.

Speaker 2 (53:38):
Other than that, we are open during the week every
single day. Yep, Okay. I want to talk a little
bit about EV's only because I had a client shocker.
We were talking about it. I know, it's a shocker.

Speaker 3 (53:46):
And I got a new EV.

Speaker 2 (53:48):
Yeah, it's good. It's a hybrid though, Yeah, but hybrid,
you got a new one.

Speaker 3 (53:52):
No, it's it's considered.

Speaker 2 (53:53):
Did you get a new car? Huh? Did you get
a new vehicle? I did? Oh? Yeah, how do I
not know.

Speaker 5 (53:58):
This Friday morning?

Speaker 3 (53:59):
Having Yes, I just got it.

Speaker 2 (54:00):
Oh, you just got it? What did you get?

Speaker 3 (54:02):
A twenty twenty three Hondai Sonata hybrid, same car, newer?

Speaker 2 (54:06):
Okay, and you always liked the car, and I really
liked the car. Yeah, despite all of the negative press,
and you hear that. I saw a report the other day.
There are so many unsold Teslas you can see them
from outer space, you know. Really, EV sales continue to grow.
I mean you can't. I remember not too many years
ago that if you saw a Tesla, you go home

(54:28):
and tell your wife thought it was cool. You go home,
tell you what, yeah, Tesla. Now you can't run an
errand even a mile from your house without seeing electric cars.
There are more and more of them. In twenty twenty three,
EV sales were eight point eight percent of all new
car sales, eight point eight last year, eight point eight
this year, Bloomberg says, be thirteen percent. With that said,

(54:50):
California's planned to ban new cars in the state by
twenty thirty five that are not electric. It's just completely ridiculous.
The regulation would require a waiver from the EPA that
Biden plants to grant, but of course I can see
Trump reversing that in January. It is interesting to me
that a very liberal state is trying to pass a

(55:12):
regulation that would essentially allow only rich people to have
new cars. Seems a little odd to me. You know,
people ask me about the test, at least the test,
because I like the technology that's it Over the past
nineteen months, I've become very familiar with that space. And
there's not a week goes by I don't get somebody
call with a question about electric vehicles. And if you're

(55:34):
one of those people out there I've got a little
bit of knowledge, don't hesitate to call and ask me
a question about it. One of the one of the
things I hear that drives me nuts is well, you know,
when you get enough electric vehicles out there, the power
grid is gonna shut down. Nothing could be further from
the truth. There's five point one million electric vehicles out

(55:55):
there right now. The projection is by twenty thirty it'll
be forty million. If there are forty million vehicles out there,
that's going to be consuming three point eight percent of
the power grid three point eight percent. If we have
eight times as many electric vehicles as we have now,
three point eight percent. And the interesting part about the

(56:16):
electric grid is almost all charging of electric vehicles is
done overnight, when the electric grid is just dying for customers.

Speaker 3 (56:26):
Yeah, no, it's definitely done overnight. So that's that's where
it doesn't care. I mean, the electric goods still fueled
by majority fossil fuels.

Speaker 2 (56:33):
That's irrelevant.

Speaker 3 (56:34):
Yeah, it's not irrelevant to the people who know the
people who say, well, you know, you get many more
election in that electric good in that debate. Nothing in
that debate, you're correct.

Speaker 2 (56:44):
Yeah, that's all big date. I'm not debating whether it's
good for the econ or good for the requirement geep.
That's another argument altogether. I'm just saying that if you
think that the ev sales are dying, they're not. And
if you think that it's going to shut down the margaret,
it's not. That's all.

Speaker 3 (57:01):
You're still a hip you know, who's not hip to
the game of evs because he just bought more oil.
Warren Buffett, how about that? He says, Hey, I'm not
I'm not stick it to my guns. Not only am
I buying more oil with oxy, I'm buying more Serious
XM too.

Speaker 2 (57:18):
The he can do those things just seem to make
no a.

Speaker 3 (57:23):
VeriSign. Yeah.

Speaker 5 (57:24):
Yeah, so they said the Serious XM and VeriSign were
smaller bodies. So they don't think Buffett bought that himself.

Speaker 3 (57:30):
Yeah, they think is like his little Mint minions.

Speaker 5 (57:35):
So he bought four hundred five million dollars worth of Occidental.

Speaker 3 (57:37):
More of it twenty eight percent of the company.

Speaker 5 (57:40):
Just I mean it drops, so he bought more. That's
what he does.

Speaker 2 (57:43):
But I mean it has to have done anything for years.

Speaker 3 (57:45):
I think what Dave always says is if the stock
market has been running and your stock isn't working. Here,
I don't really agree with you when you say this,
but for the most part, I mean, the guy gets
to a point where it's like, you know, I say
this about Ford. You know, look at Ford. It's like, sure,
you know, if the stock market is running, it's not running.
There is something to it, right.

Speaker 2 (58:05):
Yeah, I think that the Ford and we talk about
this in the office, and I get a lot of
grief about it. But uh, you know, I had the
six percent dividend and a pe of five. It's not
going much lower.

Speaker 3 (58:14):
I mean, it's it's sold, it's already it's already hurt.

Speaker 2 (58:17):
It's already hurt. It's been and it has done nothing
for a couple of years, and every now and then
it'll jump up to thirteen or fourteen. But you're getting
your six percent interest.

Speaker 3 (58:25):
But that's what Buffett historically has done. He buys overly
undervalued stock, you know, So he'll keep doing that because
he thinks he's right until you will be.

Speaker 2 (58:35):
I've been in the business long enough to remember when
Warren said that he would never buy a technology stock
because he didn't understand it. Yeah, okay, well that's changed
obviously over the years. But the Oxy, the Oxy purchasing
and Apple was his biggest holding right down.

Speaker 4 (58:49):
Yeah, we're talking to some of the iHeartRadio guys, and
he was talking about how Serious XM was kind of
going towards the what the podcast streaming? Yeah, and podcasts
yeah no, no, no, note, but Series six TEM was going
back to satellite radio rather than pushing the podcast and
the online streaming. They're going back to satellite radio.

Speaker 2 (59:09):
Why.

Speaker 3 (59:10):
I don't know why, like why regardless even if they
had an app that did streaming or if they had
a satellite radio, who in our generation is downloading?

Speaker 4 (59:18):
Serious six TEM used to be satellite radio and that's
what they always pushed, and then they started pushing this
new online, online and streaming stuff. Right right now, they're
going back to the satellite radio.

Speaker 3 (59:29):
Yeah, man, because they're too late. They realize they're too late.
We're already on Spotify, we're already on Apple Media.

Speaker 4 (59:34):
Right, So let me just touch what I can let
me get the market show that I can here.

Speaker 3 (59:37):
Focus on radio. We have a monopoly in satellite radio,
because when you have a car, a new car, what
does it come on? Serious? There's no other salllite radio,
I mean I know of so if you want a
satellite radio, you get Serius x tem. They have kind
of that monopoly. But other than that, I don't know
what they do that would be valuable. And I think
that satellite radio is a dying I mean I say

(59:58):
this all the time though, because we do. We're on
the radio, and we do just fine. There's plenty of business,
right sure. So I don't know how long the satellite
radio maybe does stay around, because there is seem to
be a couple of I would think, right, so it
might be a thirty year.

Speaker 2 (01:00:13):
Runway right right in there. But it's gonna go about
the same time Walgreens goes, right, I.

Speaker 3 (01:00:18):
Think Walgreens goes a little sooner than that. You think
walking is gonna go shot? Yeah, because I still think
people in their fifties listen to radio. Yeah, I think
after you get into the forties and thirties, the numbers
drop off a little bit and then it's just completely
straining podcast company.

Speaker 5 (01:00:32):
It's not just the radio as a whole, yeah, or
like a convenience store as a whole.

Speaker 2 (01:00:36):
Walgreens could go out of business.

Speaker 5 (01:00:37):
Because they just suck, Yeah, because we keep using one
they got right, they got other ones.

Speaker 2 (01:00:43):
But prices are higher at CBS than they aren't Walgreens.
Consistently that all the time.

Speaker 3 (01:00:47):
I don't I don't get how CVS is doing better
than Walgreens.

Speaker 2 (01:00:51):
Really, I'm not really a price ch opera, but there's
a noticeable difference. To me. I agree.

Speaker 3 (01:00:55):
I don't think why any one of those two would
be good. Like, who's going to a CVS to buy
something that seems like it's more expensive?

Speaker 2 (01:01:03):
And yet people are in the interesting you know, we
talked about this being the big football season, and that's
for a football fan, this is about as good as
it gets. You got NFL, you got Bowl games, and you.

Speaker 3 (01:01:12):
Got cold weather football games. Those are the best when
you're in a warm weather state and you get to
watch cold weather football games. Yeah, it's like it's like
you're looking into a snow globe.

Speaker 2 (01:01:22):
Right. But I'm kind of one of these guys that
thinks that the playoff games ought to be indoors and
so you actually have the best team win and not
the team that can do the best with you.

Speaker 3 (01:01:32):
Well, the first round we'll get the indoors.

Speaker 2 (01:01:34):
In the Tennessee going to Ohio State. That's how's that
fair to Tennessee.

Speaker 3 (01:01:38):
Well, they should have done better. They would have got
to buy and.

Speaker 2 (01:01:42):
They could be going to Tennessee right right. Other than that,
like Todd said, the NBC did an interesting survey. They
ranked the seventy five most valuable college athletic program. Did
you see us doing glean from people in private equity
who are in best unions college? So actually put a
value on college, on college sports programs, not the football program,

(01:02:04):
not the basket, everything together everything. What do you think
the most valuable college in the United States is? Per
this survey, UCLA, Ohio State, number two, Texas, Yeah, I
see them, number three Texas, A and M. That surprised
me a little bit.

Speaker 3 (01:02:20):
Oh, they're probably including like booster money or.

Speaker 2 (01:02:22):
Something, revenue, revenue from the various points.

Speaker 5 (01:02:25):
It's not just revenue.

Speaker 3 (01:02:27):
How do they break down revenue?

Speaker 5 (01:02:28):
It's not just revenue because I mean Alabama's number six
on there with two hundred million revenue and then there's
number eight has like two ten in revenue, so it's
not just based on revenue.

Speaker 2 (01:02:38):
I thought it was interesting to look at the value
of conferences. They then went in and said, what's the
most valuable conference? Got to be SEC in the Big ten?

Speaker 5 (01:02:46):
Pretty close six of the top ten in that valuation
that Big ten has three. Yeah, because then US season
for twelve.

Speaker 3 (01:02:53):
I guess, I guess it makes sense if you think
about the size of the stadiums. Who is the biggest
stadiums and that brings in the most revenue.

Speaker 5 (01:03:00):
But it's not just based on revenue either, because like
I said, Bama's up there, but they have two on
ared million in revenue. The number eight or nine is
two hundred and ten million in revenue. So there's another
metric to there.

Speaker 2 (01:03:09):
I didn't see. There are a number of metrics, and
they were using private equity to try to value these things.
And so do you know what number U of A was?
I mean, I know I did not want to see it.
I didn't go down there. That's what they are.

Speaker 5 (01:03:21):
And guess if they're higher than ASU out of seventy
five out of seventy five, what is U of A.

Speaker 2 (01:03:26):
Fifty two forty one.

Speaker 3 (01:03:28):
Okay, I don't think we're hiring a SU was like
fifty eight.

Speaker 2 (01:03:32):
Really, so the U of a franchise is more valuable
than the ASU franchise. Now that may change a little
bit this year with it they have.

Speaker 5 (01:03:38):
To pay off that debt that couldn't.

Speaker 3 (01:03:40):
Also, ASU has never had good sports. We've we've always
been known to be like this is where you can
get in. I mean Kentucky's we have the most student
body in the world because we don't have requirements to
get into the college. You just got to pay the
tuition bill you get in.

Speaker 5 (01:03:55):
Anybody can go there, right, But it's like out a
major one major sport and like a good other wonder
decent it'll be up there, like you of a Kentucky's
like twenty eight because of basketball more so than the
SEC for football.

Speaker 2 (01:04:06):
But Arizona for basketball. I'm sure that he exactly. Yeah,
the let's talk a little bit about GLP one. Big
week for GLP one.

Speaker 4 (01:04:14):
I don't want to talk about it.

Speaker 2 (01:04:16):
Mark finally you have to. Mark finally got involved. Mark
is buying China's Hands Pharma because they have an investigational
oral small molecule GLP one receptor agonist. In other words,
they have a pill. Another way to put that, Uh yeah,

(01:04:38):
put aka oral diet pill. The stock really merkstock showed
a little reaction. But Him and Hers Health uh that
Digital healthcare stock's up two hundred and fifty percent this year.
And get this fashion you like this? That prompted Morgan
Stanley to rate the stock. Buy there you go, say,
and the company's well positioned to benefit from increasing man

(01:05:00):
and guess what happened? Doc propertly dropped ten percent. Seems
to be a pattern here. After the FDA came out
and said Lily's and we've been talking about this on
the show, Lily's weight loss drug is no longer in
shortage and compound pharmacies will need to stop producing the

(01:05:20):
popular product within sixty to ninety days.

Speaker 4 (01:05:23):
Yet they're still producing it, right.

Speaker 2 (01:05:25):
They got sixty to ninety days to wind down, if
you will. But Him and Hers has been really killing
it in that space.

Speaker 3 (01:05:31):
So they don't. So this wasn't like they were allowed
to do it forever. No, No, it is winding down.
They kind of they kind of hope they'd do it forever.
And then the radio show, we've been saying, how is
this allowed? And certainly it sounds like, well, who required
we go vi and these people to open up? Was
it a requirement for.

Speaker 2 (01:05:49):
They wanted help?

Speaker 3 (01:05:51):
Well, that was a terrible idea.

Speaker 4 (01:05:52):
I think it more Todd, I think it more so
started because this initially was a diabetic drug, right, and
so all these people would die. Vida started to go
on the struggle. No, it started to leak onto weight
loss people and then the diabetic right, but then the
diabetics could not get it again.

Speaker 2 (01:06:10):
Huge.

Speaker 3 (01:06:10):
It was a terrible business decision. You can see now
why it is because they lost all this revenue during
this time. And if anything, you look at Navidia, who
has supply constraints, they do just fine, right because they
have a whole bunch of demand and all they say
is that we can't meet.

Speaker 2 (01:06:24):
Yeah, it was, it was, it was.

Speaker 3 (01:06:25):
It would have been better to go higher. It would
have been better than opening up and say hey and
d open up, make my chip too.

Speaker 4 (01:06:31):
This was per FDA. That wasn't Novo.

Speaker 2 (01:06:33):
Well now, but Novo and and Lily wanted to help.
They wanted to help. They were they felt like they
didn't have enough product to sell. And like Todd said,
but then doing an video just raise the price. But
I think there was some pressure on them to keep
the price down, probably from the administration, and so they
said we need more product. That's when the compound pharmacies

(01:06:55):
got involved. And now getting them to not be involved
is is becoming a bit of a problem.

Speaker 4 (01:07:01):
Well, the bigger headline of the GLP one companies was
Nova and Nordous this week. They dropped about twenty percent
on Friday after announcing results from an experimental BC drug
that came up short of the company's predictions. The patients
were given the shots that were given the shot lost
about twenty point four percent of their weight on over
sixty eight weeks on average, versus the twenty five percents

(01:07:21):
that they had expected.

Speaker 2 (01:07:23):
Right now, sixty eight weeks.

Speaker 4 (01:07:25):
Isn't that crazy?

Speaker 2 (01:07:26):
Yeah? Yeah, twenty two and a half percent weight lost
versus twenty five and the stock gets.

Speaker 4 (01:07:31):
Crushed twenty percent.

Speaker 2 (01:07:33):
Yeah don't. I don't get it.

Speaker 4 (01:07:34):
I don't get it.

Speaker 2 (01:07:35):
You read the news and I said that there has
to be more to this. The other thing I saw
in the news release is there are still safety concerns.

Speaker 4 (01:07:43):
So yeah, but then so like on Friday too, I
don't know if you saw Eli Lilly came out and
said that FDA disapproved their drug for sleep apnea. Right,
So yeah, more and more you're gonna get. These drugs
started to get approved for other things rather than just obesity.
And we've seen that already.

Speaker 2 (01:08:00):
Yeah, I think I think you've seen it for fertility.

Speaker 4 (01:08:02):
We've seen it for.

Speaker 3 (01:08:05):
We've also talked about the fact that these stocks were
overvalued for a very long time.

Speaker 2 (01:08:09):
So expensive, I mean Lily five times any other pharmaceutical
company out there, So it's vulnerable to any any kind
of a hiccup. Right, And so if you're in lelly
and and you've ridden it up as much as it's
takes them off the table. Same with Nvidia. H trees
do not grow to the sky, and eventually within Vidia

(01:08:33):
you get to just using them as an example, I've
been saying for weeks that I think they probably are
they they're producing as much as they can produce, uh,
and you can't produce anymore. And at that point you
start to think, well, maybe the maybe the stocks toopped
out a little bit.

Speaker 3 (01:08:50):
So did you see Adobe? Obviously last week drop big
kind of had another five percent down week. This week
I thought was interesting is they're saying that Adobe's losing
business to Chat GPT and Microsoft's backed Open AI, and
then Adobe is not using their monetization of AI solutions.
And I thought, you know, maybe I could actually see

(01:09:11):
that where some of the things you might have used
Adobe before, you can just use an AI, whether it's Open,
whether it's Chat, Gibeterior, any of the AI bots. Maybe
that hurts Adobe. But then at the same time you think, okay, well,
why does an Adobe just implement some type of AI
into their business offering. I feel like Adobe is one
of those things that a lot of businesses already use.

Speaker 4 (01:09:33):
Oh yeah, and that earning is called The main thing
that was talked about was the fact that they weren't
able to monetize their AI.

Speaker 2 (01:09:39):
Right, I have a I don't use Chat GPT a lot.
I appreciate you telling me about Chat. I've got the
app on my phone. I'm more of a Google guy
for whatever reason. And my grandkids were visiting for Thanksgiving
and they were asking me what I had on my TV.
While I'm I have to decide every month whether to
make my mortgage payment or pay my cable bill. Right,
so I'm one of those guys, I said, I have

(01:10:01):
everything anything. Do you have this? I have that? Do
you have this? And that? Yes, I have that. I
bet you don't have chat GPT. I pulled out my
phone and showed him the chat GPT app. It was
I popular.

Speaker 3 (01:10:15):
You thought, you're pretty cool.

Speaker 2 (01:10:16):
Pretty cool, pretty cool. And we're running over there for
a Christmas over to Orange County just to spend a
little time with the reminds me of last Christmas when
my wife. I needed my wife and I called out
her name and my four year old granddaughter said, you
called her. Her name's Linda. I called for land Linda,

(01:10:36):
and my four year old granddaughter said, you called her Linda.
Her name is Grandma. Kind of cute. Gonna go down
in the archives. So we get a few more of
those while the kid before the kids become thirteen and
fifteen and don't want to be anywhere near us, you know,
got to soak it up. There's five and seven of them,
soak it up while we can.

Speaker 3 (01:10:55):
I saw an interesting article as we round out this
break about Team Mobile tea Mobile partnering with Starlink in
a beta phase of getting all their phones connected to Starlink,
meaning that any dead spot. You know, Dave, you Ron
hikes all the time in national parks, all of a
sudden you don't got service. Well, that would be a
thing of the past. You'd be connected in every single
part of the worldhole by just your phone, no extra
hardware needed. If that comes to fruition, potentially people on

(01:11:18):
Verizon eighteen teas to say, hey, I want to go
to T mobile. That's that's something you just can't be
especially on those long term drives, you know, road trips,
and all of a sudden your music stops out. Well,
imagine that never happens.

Speaker 2 (01:11:28):
Right, We've ring it closer to home. If you walk
Sabino Canyon and go on the tram side of Sabino Canyon,
it's roughly four miles to the top. About a mile
in you lose coverage right in Sabino Canyon, So that
would be spectacular. I listen to music and it goes away.
We will be back with more than Money Matter Show. Sebastian,

(01:11:48):
your first step, Come on, we come back. We'll back right
after this break. Thanks for joining us. Welcome back to
the Money Matter Show. It's beautiful Sunday morning, Sebastian. We
were talking about losing coverage on our alphones, and you
said you lose coverage.

Speaker 4 (01:12:02):
All I was gonna say was I lose coverage at
Chick fil A on Oracle when I'm sitting in the
drive through. Starlink would be a hell of a thing.

Speaker 2 (01:12:08):
Oh yeah, yeah, then that would be wonderful to be
able to have coverage all the way.

Speaker 3 (01:12:12):
A couple of ETFs caught my eye this week. We
got to sell off. Opportunities arise when you get sell offs, potentially.
I think one of the things about one of the
legends you talked to, I think it was Paul Tutor
Jones that was interested in the KRE the regional bank ETFE.
It has come down since he's bought it, so maybe
a better opportunity than what he got in. I think

(01:12:33):
it's interesting with regional bank. There's been a lot of
inflows into the financial space as of late. It's been
one of the highest sectors for whatever reason. And uh,
it seems the regional banks have kind of maybe got
too far too fast. Kie the insurance ETF that's come
down from its highs quite a bit. And uh, I
always love when we hear something from antidotally Dylan got

(01:12:55):
a nine percent increase on his home insurance today.

Speaker 2 (01:12:58):
You know.

Speaker 3 (01:12:58):
So when I hear that, it's like, oh, you know,
let's not make the same mistake again, Dave. Let's look
at the insurance ETF so kie that's the the spider insurance.

Speaker 4 (01:13:08):
TV nine percent increase stolen Yeah, no mine, you know
what mine was? Hundred percent? Yeah, one hundred percent.

Speaker 2 (01:13:15):
In the insurance business is a license to print money.

Speaker 4 (01:13:18):
No claims, no claims, one hundred percent increases.

Speaker 2 (01:13:21):
That's crazy. I backed my Tesla into a wall, had
eight thousand dollars worth the damage. I was going five
miles an hour with eight thousand dollars with the damage
you could it's all made out of aluminum in plastic, right,
So yeah, you push the plastic bumper into the rear
quarter panel at Buckles. You know, eight thousand dollars. My
insurance went from nineteen hundred dollars a year to forty

(01:13:42):
one hundred dollars a year. They are going to get
that eight thousand dollars back from me if it kills them.

Speaker 4 (01:13:48):
Speaking of regional banks, since you just use regional banks,
they were able to compete with those rates, right, I.

Speaker 3 (01:13:53):
Use the credit Union. It's not a regional bank.

Speaker 4 (01:13:55):
I'm not considered a regional bank.

Speaker 3 (01:13:57):
They're considered different making a credit unions.

Speaker 2 (01:13:59):
Two different things, yeah, different different, different chargers, different chargers.
That was drunken Miller. I think that had the always
a drunken.

Speaker 3 (01:14:07):
Biler drunk Yeah, okay. Another etf uranium that Scott sold off.
Another one I like in that space is NLR has
more of some of the nuclear plays in it. We
talked about how that space is maybe still a couple
of years away, but that is going to continue to
get more and more adoption because of the need for
the energy grid to be built out on more sustainable renewables,

(01:14:29):
not the ones we have right now that just make
the desert look terribly ugly and don't really work and
kill more environmental How can environmentalists be so okay with
these wind turbines and then you go to a winterbine
there's like fifteen dead birds at the bottom of it. Yeah,
you know, it's like and then you and you and
you see these wind turbines they have on the off
the coast, and then all these dead whales that are

(01:14:49):
washing up the shore. And if you're an environmental soly
you care about then all of a sudden, you also
promote the same things that are killing the things you're
trying to say.

Speaker 4 (01:14:59):
They just sit there because they don't even work anymore.
They don't go fix them.

Speaker 3 (01:15:02):
Yeah, but people don't understand. The windmills out in the ocean,
they make noise. That vibration whales and dolphin they're super
sensitive to those noise disorients them and all of a sudden,
they don't know where they're going and then they die.
It happens a lot, and it's just it's crazy how
you see these policies of ESG promoting one thing, and
I think you know, evs are one of those things.

(01:15:24):
It seems like a great idea. But when you actually
go into the nitty gritty of where these inputs come from,
and you go to the mines and you go to
how they're actually impacting the environments around where those inputs
come from, you realize, oh, this isn't actually a better solution.
We're just helping ourselves feel better when we sleep at night.
It doesn't actually change anything. It probably actually makes things worse.
And I think we see that also with way California

(01:15:46):
does their thing. Think about all their wild fires. If
they would actually clear the butt brush every now and.

Speaker 2 (01:15:51):
Then what happens, right, But they don't because you can't
cut down trees, and then all of a sudden you
get all the fire.

Speaker 3 (01:15:59):
It's like, okay, well, which one do you want? Right?
All the trees that cut down fire, and then you
have these homes, then you have these crazy insurance policies
that come with it, or you just manage the brush
in the first place.

Speaker 2 (01:16:10):
Speaking of fire, bullying's on fire again. Is A Stock
is up twenty one percent in the last ninety days.
That's unbelievable. It's just nobody's talking about It's kind of
going away, and that's hard to touch still, is it is?
It's hard to get behind it right now. I think
what they need, Dylan, is for people to quit talking
about them. And that's exactly what's happened. Yeah, people who

(01:16:30):
quit talking about for them. Good news. Stock's up twenty
one percent in the last ninety days. Now, it is
still the worst performing Dove stock, but Nike's catching up.
Nike's catching up. Nike continues to struggle that the stock
sank more than seven percent on Friday despite beating low
expectations on quarterly earnings. They did show a year over

(01:16:51):
year decline in revenue and earnings, which is never good.
Company's going backwards, and the company CEO said Nike's turnaround
plan could cake longer than anticipating.

Speaker 3 (01:17:02):
I think their weight idea was a terrible one. I
don't get why they try to sell weights. I mean,
if I'm someone who wants to buy weights, why would
I spend more money for a Nike brand weight? Yeah,
weights are weights.

Speaker 2 (01:17:12):
They do.

Speaker 3 (01:17:12):
They weighed the same thing. Yeah, why do I need
a Nike sign on it?

Speaker 5 (01:17:16):
They thought they were buying was Nike. I mean they
also for years they were in Nike Golfer. They finally
killed that division.

Speaker 3 (01:17:24):
We actually liked. I like Nike Golf from Nike.

Speaker 2 (01:17:28):
Want there, but it still died off.

Speaker 3 (01:17:31):
Yeah, I mean I get the clubs, right, yeah, but
I feel like a lot of people buy Nike golf apparel.
It was a big thing.

Speaker 5 (01:17:38):
Yeah, yeah, the apparel. I thought they were still doing
the apparel. I thought it was the equipment they stopped.
They did golf all a long time ago. The clubs
they were killing off. Maybe they stopped at all, but
I thought it was just the equipment.

Speaker 3 (01:17:49):
Well, they lost Tiger. I'm pretty sure they don't do well.

Speaker 5 (01:17:51):
They did Tiger anymore Sunday Red. But I mean they
try things and the weight stuff might not work. But
when you're in the athletic where world, you're gonna try
weights eventually, and you're that big a company. But if
it does take off, your geniuses.

Speaker 2 (01:18:08):
I do like a company thinking outside the box, though,
how far can we take this logo? What what areas
can we get into that nobody's thought about that maybe
would make some sense in todd Like you're gonna have failures, right,
You're gonna have things that are just well that didn't
take off like we'd hoped, whether it be the golf
or whether it be the weights.

Speaker 3 (01:18:27):
Yeah, I mean they should just be buying every single
Big Leagues jerseys and be selling those and selling the apparel.
That's what they'll be good. That's what they're good at.

Speaker 2 (01:18:38):
Yeah, that is what they're good at.

Speaker 5 (01:18:39):
Yeah, they need I mean they're having a whole fiasco
with MLB. I think it's uh, I forgot the new
company that took over the MLB uniforms, but they're they
kind of assessed cheped out on the fabrics. It's like
see through they don't like it, so they got to
change it all so Nikes should jump in eventually, which
they probably will.

Speaker 3 (01:18:57):
Yeah, I mean, I think Nike extended their project with and.

Speaker 5 (01:19:01):
It's also they got Jordan Jordan Brand is expanding their
uniforms a lot quickly.

Speaker 3 (01:19:07):
Yes, and you see College is now sponsored by Jordan Brand,
which which helped Nike as well.

Speaker 2 (01:19:13):
Yeah, I agree. You talked about the economy being strong
and fed X is often seen as a proxy for
the global economy open to eight percent higher on Friday.
It reported very strong results above expectation, and of course
they then they went one step further in said they're
going to spin off their freight business.

Speaker 3 (01:19:31):
I think, like you said, when Amazon being such a
dominant player in that space now more and more, it's
hard to gauge that one. As the economy, I.

Speaker 2 (01:19:40):
Can see that, but they are one of the few
companies that operates globally right in that space, and so
that's kind of we do.

Speaker 3 (01:19:46):
Know to be fair. Internationally has way way underperformed us. Well,
we have killed it America wise this year. Compared to
the rest of the world, it's not even close. So
that doesn't make sense too. If you're having a global
presence instead of just a domestic American presence, you shouldn't
do as well.

Speaker 2 (01:20:03):
That's a good point. We got out of our international
holdings a couple of years ago, and it was the
smart one of the smartest things we ever did. Smartest
thing we ever did was was go to individual short
term bonds before interest rates started rising into what March
of twenty one, I think it was. That's probably the
single smartest thing we ever did, because when you have

(01:20:25):
a portfolio of this balance between growth and fixed income,
equity and fixed income, you want the fixed income part
in theory to be stable. And had we not done that,
we saw fixed income even US Treasury long term US
Treasury bonds dropped thirty and forty percent in value. So
if you've got the stable part of your portfolio dropping

(01:20:47):
thirty or forty percent of value, that's not good.

Speaker 4 (01:20:49):
Membrolla headlines death to the sixty forty portfolio question marks.

Speaker 2 (01:20:53):
Yeah, I remember that. Well, yeah, and I can see
that if all you're using on the fixed income side
is mutual funds. Uh. The only way a mutual fund
is ever gonna get whole is if interest rates come
back to where they were when it started, and where
they were was zero, and we're probably not gonna see
that again.

Speaker 4 (01:21:11):
What happened to Micron stuck this week? It's got destroyed
down twenty percent.

Speaker 3 (01:21:16):
Got crushed after it's just a high beta stock. I
think again, you know, well, they're gonna get reported, they're
gonna get included with micro Strategy into an ASDAK one
hundred and so you know, you get a huge increase
off that news.

Speaker 4 (01:21:29):
It's gonna sell off their data center. Data center revenue
jumps by four hundred.

Speaker 3 (01:21:34):
Yeah, but they're expensive. They probably needed to jump by
eight justify the price.

Speaker 2 (01:21:41):
I think. I think the big problem with Micron is
the outlook. They gave a cautious outlook, which was surprising
because everybody thought, man, we're hitting it on all cylinders
here and let's go. And they reported, like you said,
see bass results that we're above expectations, and the dock
just got crushed because the CEO is be in a
slow down in cell phones and it was one other

(01:22:04):
component and I think it was PC's right, it could
be PCs and another analyst I follow said, he's nuts.
I don't know how he's seeing that, because that's not happening.
We're not seeing a slow down in either of those spaces.
I don't know, we'll see. How about how about Nissan
and Honda talking about merging. Nissan and Honda, that a

(01:22:26):
big merger, big merger. It would be the third largest
uh carmaker in the world behind get this, Tesla, excuse me,
behind h Toyota. And who's number two? Vovo?

Speaker 3 (01:22:43):
No, I think you just gave yourself up. No, not Tesla.

Speaker 2 (01:22:46):
No, it's a wagon. Oh dang it, that's what I meant.

Speaker 5 (01:22:51):
Not Volvo.

Speaker 2 (01:22:52):
I met the Okay, okay, I did. I'll give you
a duel over he got.

Speaker 4 (01:22:58):
I would have had the Toyota one.

Speaker 2 (01:22:59):
Not I did. Never would have gotten that, folks. Flag
And being the number two car produce in Europe, Yeah,
it is. And and the interesting part about it is
they're merging because they're struggling to keep up with Tesla
and China's by d in the electric space. So here's
you know, you look at what's the future of electric
here's two of the largest car companies in the world

(01:23:21):
combining so they can do a better job at producing
electric vehicles. If you think that's a that's a thing
of the past is gonna die off and you're not
gonna have to deal with it, I think again. The
other thing is if you're a hater, you have to
ask yourself why am I hater? You know? There's an
awful lot of awful lot of good things. Uh.

Speaker 3 (01:23:42):
And and Dave isn't talking to you guys who think
that the EV isn't good for the environment. He's not
debating that. He's just sayings are growing.

Speaker 2 (01:23:51):
I'm saying, and I'm also to hear.

Speaker 3 (01:23:54):
You all don't be mad at Dave.

Speaker 2 (01:23:55):
They'll be mad at me. No, Dan, I'm just saying
as a as a A and a listener said the
the day that I don't use my break. I was
talking about how breaks there take me. What listener said
is probably because he drives us low. Yeah, what do
you think, Sebastian.

Speaker 4 (01:24:07):
Would you say you drive like a bet out of hell?

Speaker 2 (01:24:10):
Well, if if you see a black blur going by,
it was probably me. We'll be back with the last
segment without white hair, with white hair. Welcome back to
the Money Matters Show. This is our last segment. I'm
here with David Sherwood, Sebastian Borsini, and Dylan Greenberg. The
Fed took hold of this week's price action. They had
a hawkish cut. They said, two cuts in twenty twenty

(01:24:31):
five instead of the fourth they had expected in September.
Inflation being a little more sticky was the reason for it,
and likely won't have another rate cut until maybe around
the March. Here.

Speaker 3 (01:24:41):
I don't think they even talk again until February and
then they meet it probably rate cut season March again.
But the earnings next I mean economic report next week
or nothing, and then earnings aren't for another couple of weeks.
So it seems like it's really just going to be
a lot of just inflows, because does January one starts,

(01:25:01):
you got a lot of retirement inflows coming in.

Speaker 2 (01:25:03):
Yeah, a ton of money coming into the market. I
think the Santa Claus rally, and this is from memory,
so correct me if I'm wrong. Last three days of
last three calendar days of December, first two calendar days
of January. I think if I remember correctly, for the
Santa Claus rally, So we're coming up on it.

Speaker 3 (01:25:19):
Not around Christmas, that would make no sense.

Speaker 2 (01:25:21):
Yeah, it is, We'll we'll have to do some housekeeper
can bring that back. Chick. I think it is last
three days calendar days of the year. Maybe you can
google it while you're sitting there. Well, we got the
Santa Claus Rally, which is a traditional strong time of
the year for the market. We've got January, which is
sees the biggest inflow of any month of the year
into retirement accounts. January typically one of the stronger months

(01:25:44):
of the year. You've got Trump two point zero beginning
the end of January, which is creating a lot of excitement.
I just with my decades of experience, have a hard
time seeing the market going much haigh right now with
interest rates rising. Just that's the key. We need to

(01:26:04):
have interest rates start to decline, and I don't see
that happening over the next four to five weeks.

Speaker 3 (01:26:10):
Yeah, I mean I don't know, technically, technical, Yeah, technically
I've seeing the rates do break out here.

Speaker 2 (01:26:16):
Santa Claus Y.

Speaker 3 (01:26:18):
Santa Claus Rally says it starts December twenty fourth, goes
to January third. It's the last five trading days of December,
first two trading.

Speaker 2 (01:26:25):
Days, last five, and not the last three.

Speaker 3 (01:26:27):
Last five, first two of January. I thought it would
make sense that it starts before Christmas. Well, at least
the day.

Speaker 2 (01:26:34):
Half of a round Christmas, so they are okay, so last.

Speaker 5 (01:26:36):
This year, it might start because I mean Monday is
the last four day before Christmas.

Speaker 2 (01:26:39):
Yeah, and we're going to see you typically see a
lot of tax loss sally in the last week, but
I think that this year a lot of that's got
out of the way. There isn't. The other side of
that is, there's not a lot of losses to take
this year because it's been two spectacular years in a row. Yeah.
In Intel, most people go.

Speaker 3 (01:26:58):
I mean, mistake me of the I'm not a tax expert,
but I think you do have a two year carry
forward loss. Some people could be using.

Speaker 5 (01:27:05):
I thought it was three years to carry forward.

Speaker 2 (01:27:08):
Yeah, lost carry forwards forever. Oh it's three grand three grand, yeah,
three lost carry forwards for the rest of your life.

Speaker 3 (01:27:14):
Capital loss car you can only use three grand.

Speaker 2 (01:27:16):
You can only use three grand for the year. That's
if you take a loss on something, you can use
that loss to offset gains in the following year or
that year, and then you can carry three thousand of
that loss forward to the next year. And you can
do that indefinitely. Believe me, I've been doing it.

Speaker 3 (01:27:34):
Wait so if I wait a minute, that's what I'm saying.
So if I lost one hundred thousand last year and
I made two hundred thousand this year, I could carry
forward that loss and I or really only made one
hundred thousand this year. Yes, yes, yeah, so okay, yeah,
but if but the three thousand limits it's saying the
next year.

Speaker 2 (01:27:49):
I did say it a little confusing. Three three thousand
is the maximum you can take if you don't have
gains to offset it. So if you had no gain,
if you had no gains and you had a fifty
thousand dollars loss, the maximum wash you can take it's
three gotcha, I don't believe you.

Speaker 4 (01:28:04):
You've been doing it.

Speaker 2 (01:28:04):
You do that? Oh yeah, because I'm a day trader.
That money every single year I look at it. That's
the expense of day trading. It's all tuition. What's like
going to movies. It's like going to movies, going out
to dinner, and you know, day trading.

Speaker 4 (01:28:20):
They all cost moneypening.

Speaker 2 (01:28:23):
Decades, decade.

Speaker 5 (01:28:27):
He's an investor, not a trader.

Speaker 2 (01:28:29):
Yeah, that's not my investing money, but my trading money.
I always lose. It's like a gamble. It's like Steve
Wynn was interviewed by CBS and they ask him how
many people you've seen over the years walk away net winners.
He goes, none. None. You didn't even think about it. None.
And that's pretty much how it is in day trading.

(01:28:50):
And I know there's people out there it's a little
I make my living day trading, Well, good for you.

Speaker 3 (01:28:55):
I don't.

Speaker 2 (01:28:56):
I'm bad, so I don't. And I'm not gonna brag
about my day trading, that's for sure. And I don't
day trade with clients money because I'm just not very
good at it.

Speaker 3 (01:29:08):
No, we invest based on risk tolerance, and because when
markets drop, people freak out, it's the time to revisit
your risk tolerance. You've got a couple of calls, why
is the market selling off? You know, those are fine,
we'll just answer them. But if you're just like, look,
the market's selling off, I need to get out. No, No,
that's don't be brash, right that first revisit a risk tolerance.

Speaker 2 (01:29:27):
The problem go ahead time.

Speaker 3 (01:29:29):
Well, I was just saying, when you revisit the risk tolerance,
you can actually take yourself out of the emotional immediate reaction.
You were going to experience and kind of be more
analytical and objective.

Speaker 2 (01:29:39):
Right, If you find yourself looking at your account online
every day, just stop it. It's just that's so counterproductive.
And if you if you find yourself concerned about the
market when it does a one day drop, literally one
day was Wednesday was down and Friday was up as
much as it was down on Wednesday, So you know,
get over it.

Speaker 3 (01:29:57):
You know, what I think is a good example is
if you were planted a tree, if you checked every
single day, you're not going to notice the growth. The
same way if you wait two weeks and then you
come back, you've got to see a big growth difference.
You're like, well, obviously you have water, but if you
check every single day, you're not going to notice. It's

(01:30:18):
like kind of like us, if we're around each other
every single day, we get a haircut, you might not notice,
whereas you see someone once a week and you get
a haircut, and then you're like, oh, you got a haircut.
So it's it's like the less you notice, the more
you notice the gains, and you won't see the losses
because all you got to give it is time.

Speaker 2 (01:30:36):
You know. I kind of like that, and there is
it's counter productive to look. If after eleven hundred point
down day, I get a call from the sprine, I
never looked at my account, but I thought it better today. Really,
you thought you better today? Why you like? You like pain?
What is wrong with you? Yeah? How about last month
when the market was up? Did you look then? Everyone
never did look then? Really you only wanted look when

(01:30:59):
it hurts? Huh Okay, sounds to me like a person
it calls you to get mad. Well, no, it's not mad.
But but shouldn't we be doing something? Yeah, like not look.
That'd be a star. That'd be the first. That'd be
step number one, turn off the computer. You know, like
somebody walk like he goes to a doctor and he goes, doctor,

(01:31:21):
I hurt when I do when I do this, he goes,
We'll stop doing that. You know, duh, this is not
rocket science. Disney Uh, Disney's one that's just such a
puzzlement to me. There. Their new Mawana I movie was
number one at the box up the office for a
second straight week, but investors don't seem to care. Stock's
down seven percent in the past two weeks. Despite remember

(01:31:43):
a couple of weeks ago, I had that stellar earnings
report hitting on all cylinders. Uh, Streaming is doing great,
subscriptions are rising, theme park attendance is.

Speaker 4 (01:31:53):
Going to see, consumers got new.

Speaker 2 (01:31:54):
Ships were starting with our cruise lines are kicking it,
and the stock just took off and then just go.
It didn't fall apart, but it's like it just doesn't
seem to have any legs. Rosenblatt raised the price target
on Monday, Nobody cared on Wednesday. Morgan Stanley named it
the top pick. It actually did pick up a couple
of bucks on that day, but you just kind of wonder,

(01:32:17):
what's what's it going to take to get that stock going?
And I guess it's kind of like Ford. It's been
so boring for so long that nobody's interested in it.

Speaker 3 (01:32:27):
What I saw Friday, Bitcoin and the S and P
five hundred very very interesting one day candles because you
opened down but you have this huge run up. And
in bitcoins was a little more interesting because it was
so much down, like it went down from ninety nine
to ninety two and finished back up at like ninety eight.

Speaker 2 (01:32:45):
It was amazing.

Speaker 3 (01:32:46):
It was just a big wick.

Speaker 2 (01:32:47):
Yeah, if you want to be invested in that space,
strap it on.

Speaker 3 (01:32:50):
But even the SMP, the SMP was down twenty five
base points finished up around two, right, So that's a
that's a big divergence for the SMP to have it
one day, And I think you can say that there's
a lot of buyers that came in and maybe there
wasn't as much sellers going into the weekend going into
the probably one of the lowest volume weeks of the

(01:33:10):
trading year. But I can't imagine all of a sudden,
you get a slew of sellers next week, and where's
that volume going to come from? So I think it
could be potentially that we see in a little bit
of a rally going into this end of the year,
of the Santa Claus rally. That one, there's not many
economic reports coming out that could make rates go higher
than where they are now.

Speaker 2 (01:33:30):
It's also going to be real interesting in January the
tecond to see what happens with some of these extremely
highly appreciated names. If anything, there are things you can
do to hedge that ahead of time. In the case
of a Bitcoin, you can buy an inverse bitcoin ETF.
In the case of Nvidia, you can buy an inverse
and I've done some of that for clients where they're

(01:33:52):
concerned about the game but don't want to take it.
This year, we've actually gone ahead and hedged a portion
of that which we can do here.

Speaker 4 (01:34:00):
So your thought process is at the start of the year,
all these people are going to lock in these games.

Speaker 2 (01:34:04):
It seems like if you can get to January second
and you have an opportunity to lock in the game,
that you will not all of it, certainly. But if
bitcoin went from I don't todd what forty to forty
two one hundred thousand, you might be inclined to take
some of that off the table.

Speaker 3 (01:34:21):
I can't imagine, though most do. Because if you think
about an Apple stock that has gone up since it's
gone up, I'm not going to sell my Apple stock.

Speaker 2 (01:34:27):
No, Apple's not Nvidia or Bitcoin. Apple's different apples.

Speaker 3 (01:34:32):
I think you're that's a personal opinion that's now subjective
because I I again, that's just your own opinion. The
video is the second largest company in the world, and
whether we think it's value there should be there or not.
Investors do think that.

Speaker 2 (01:34:46):
Right, But Apple hasn't gone up four five hundred percent
in the last two years.

Speaker 3 (01:34:50):
Not the last two years but when it was going up, right,
that stock never started going down because of that.

Speaker 2 (01:34:55):
I mean, maybe big pullbacks in Apple, but I don't
know again, you.

Speaker 3 (01:34:58):
Know what I mean. Whereas it's not like a a
majority of people locking and it might be a sub
three per share of the actual shareholders.

Speaker 2 (01:35:06):
Maybe it's a giant nothing burger. I'm just thinking that.
On January second, it could be kind of interesting to
watch some of these high names to see if anything
does happen in them.

Speaker 4 (01:35:16):
I just don't know why, Like, if you're not going
to take the game this year, why are you going
to be so quick to do it on January second?

Speaker 2 (01:35:21):
For the next at tax for another year. You got
to pay tax until April twenty six.

Speaker 3 (01:35:26):
But if you don't, but don't you have to if
you have your taxes too high, you have to do
quarterly payments anyways.

Speaker 2 (01:35:32):
Is that not a thing I'm not I'm not gonna Yeah,
that's the question. For an account, it has to do it.
But we do see that in the market, nouf, we'll
see it this year or not. We're coming to the
end of the show. We thank you for taking time
to listen to us, because it'd be kind of silly
for us to talk if nobody was listening, right, we'd
like to be happy because it's that time of the
year to be happy, and we all want to be

(01:35:53):
healthy because if we're not healthy, we're probably not happy.
And Greenberg financial, but we're trying to be is profit
you next week? Happy holidays? Hmmm,

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