Money Matters: Riding the Market Highs and Managing Risk

Episode Transcript
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Speaker 1 (00:00):
Good morning, everybody. This is the Money Matter Show right here,
seven ninety K and s T. It's eight o'clock in
the morning, and are you ready to rock and roll?
Because I'm telling you right now you better listen up closely.
The markets are in what I call a very scary situation.
Why I say scary, uncomfortable it's probably a better word,

(00:22):
because the money that's being made right now in those
AI stocks very difficult to believe.

Speaker 2 (00:30):
And you want to and you're smart enough to know
that we're.

Speaker 1 (00:32):
Supposed to take money off the table, and then they
go up another ten percent, and then the ten percent
and another ten percent. What I'm telling you right now,
if you have those stocks and you don't pay it
back coming up in the next week or so, it
could be a problem. If you don't have big positions,
if you haven't made like if it hasn't overtaken the
portion of your portfolio. Okay, that's fine. I know a

(00:54):
lot of people that have a lot of those stocks.
And I'm not just talking those mega companies. Oh those
are probably safer than some of the other ones. But
I'm talking with these quantum computers. If you're watching anything
on TV, these stocks have gone up two hundred percent
more than that in the last month and a half.
A week ago, some of these stocks that are forty
were fifteen, some of them that were eleven or thirty eight,

(01:18):
twenty eight. You know why, because everybody's putting money into
these small cap stocks because they're going to lower interest rates.
When they're lower interest rates, that's good for small companies.
And what are in these funds, the quantum computing, the AI,
all the small companies, and they are exploding way beyond
any type of evaluation that they should have. But greed

(01:44):
is setting in, But stupidity and piggishness cannot. I'm okay
being greedy, I'm not okay being piggish, and I'm not
okay being stupid. So I think it's getting to the
stupid stage and way over piggish already that we need

(02:04):
to pair back. I'm not saying you sell it all.
If you got two hundred shares, sell fifty, or sell
one hundred. If you got five hundred, sell two hundred,
If you got one thousand, sell four hundred, three hundred,
pair back if you're in those stocks. If you're not
in those stocks, it doesn't matter. But you're also not
making the money you think you're going to be making.

(02:25):
The S and P five hundred, the equal weighted S
and P five hundred is only up for the month
point eight percent. Okay, it's trailing the S and P
five hundred by almost double or the Nasdaq by almost

(02:46):
double for the year, because it's the technology stocks that
are moving it. Not everybody needs to be aggressive, Not
everybody wants to be aggressive, but I'll tell you what.
Everybody wants to know that the part is something that's
being good. So we'll either do it in the ETF
but if you want a bigger portfolio, you do it
the other way. But there is risk, and I'm telling
you sk RSK. Risk is an important, important, important thing

(03:14):
to understand. And risk doesn't mean oh I can handle
making all this money and then cry and sell at
the bottom when it turns. Understand how to mitigate the
risk there, and then you'll be much better off.

Speaker 2 (03:29):
The S and P is getting high? Are you kidding me?

Speaker 1 (03:31):
Almost touch sixty eight hundred, guys. Back in March we
were at forty eight hundred. Uncomfortably bullish for the future,
uncomfortably bullish right now until we have a place that
we have a little bit of a pullback, and I

(03:52):
don't know when that's happened. I don't even know what's
gonna happen. I just am giving you strategies on how
we get through this. Sitting there going I wish I
got out. You don't get out of everything. You get
out of some. And I'm just telling you that because
that's what we have to do. Or you hedge your accounts,
but you have here's the thing. You can hedge against

(04:12):
the S and P five hundred. But if these these
these stocks that have been flying come down, they're not
coming down like the S and P five. They're gonna
come down a lot more.

Speaker 2 (04:24):
All right.

Speaker 1 (04:25):
If something goes from fifteen to forty forty five, that's
up thirty points, right, You're gonna see you come down
fifteen to twenty points and there's still in an up trend.
You have a thousand shares, you just made yourself twenty
five grand. You get better, and then you come back
and you're gonna give you you know, you made thirty grand,
You're gonna give back twenty grand.

Speaker 2 (04:47):
You know. Think about that.

Speaker 1 (04:48):
So if you take off some, that gives you the
money to buy in as it comes down lower.

Speaker 2 (04:52):
That's all I'm saying.

Speaker 1 (04:53):
So this week for the market, say were all up
over one percent, but the big one was Rustled two thousand.
The small company they were up almost two percent. The
S and P was only up one point one percent.
That was only up one point one percent. The Knives
that was only on one point three So the money
flowing in to the small caps is what making these
small cap AI stocks fly. So if you understand that,

(05:16):
then you understand why I'm harping on the fact that
depending on how money you got, you got to get
some cash into the accounts. So where do we go
on the overall markets? I think that's gonna still out
a little bit. We are in October. There are a
lot of things still on the table that we got
to worry about. Remember the Supreme Court still going and
we have to rule on tarifs and whether or not
we have to give back those billions and billions of

(05:37):
dollars that we've collected plus more. Okay, I'm hoping that
we don't go that route. Okay, it bothers me more
than anything in the world when something's working, just because
it's not your party, the other party wants to bring
us down. I thought these people were here to work
for us, kind of supposed to be working for us,
whether you're a Democratic Republican, they're supposed to be working

(05:57):
for us. How could they switch every single time just
because the other party's in there, just.

Speaker 2 (06:02):
To make it hard.

Speaker 1 (06:04):
Everything that was in this thing to go ahead and
keep the bill going, the government open, okay, was the
same thing we voted on, the same exact thing that
was voted on when Biden was in. But they won't
vote on it because Trump is in. I get it.
The Democrats want to discuss the healthcare cuts as they
put them, and the Republicans are saying, no, we're not

(06:27):
spending all that wasteful money on giving Medicare Medicaid to
able body people.

Speaker 2 (06:36):
And to illegal immigrants.

Speaker 1 (06:38):
What you and I don't know is how many are there,
how many of the cuts, how many people in those
cuts when they cut it as a Democrats say, we're
hurting all these certain tens of millions of Americans. How
many of those tens of millions of Americans or able
body that can work so that I would say that's

(06:59):
fraudulent or legal immigrants that are going ahead and collecting
when they shouldn't be doing it.

Speaker 2 (07:05):
And I know the other story is, well, some of.

Speaker 1 (07:07):
Them have been paying in for a long period time,
they've got jobs, they pay taxes.

Speaker 2 (07:12):
Well, how did that happen?

Speaker 1 (07:14):
You know, to pay taxes and do that stuff, you
need to have a social Security number. So who's social
Security number are they using? And if they are using
their own, how did that slip through the system and
allowed No one's asking the common sense questions about people
getting things that they're not supposed to get. It's illegal
to give people that are not American citizens healthcare benefits,

(07:37):
medicaid from our taxes, but somehow, some way they.

Speaker 2 (07:41):
Continue to get it.

Speaker 1 (07:42):
And right now the Republicans are saying, we're cutting that out. Okay,
what percentage of that ten million?

Speaker 2 (07:50):
Tell us what it is. Why wasn't anybody break it down?

Speaker 1 (07:53):
Why do they just use these big general things to
try to get their side of the party on the thing.
But we got they should have kept the government open,
just like they did with Biden and then have these
discussions that they go forward. I'm not sure you want
to spend a trillion and a half dollars on healthcare
that we don't want to spend right now. I don't
think you, or me, or most people in America want

(08:17):
to pay for people that are not paying their taxes,
that are fraudently taking money from us. Today's technology and
AI and all this stuff, we can figure out pretty close,
probably within one to two percent of margin mistake margins,
who's actually supposed to get and who's not.

Speaker 2 (08:35):
So why don't we do that?

Speaker 1 (08:37):
Why does in Congress get together and start doing some
things that make sense. I'm sure most of the people
in the country cannot stand what's happening with ICE when
they go to these blue cities, these sanctuary cities. I can't,
other people can't. It doesn't make sense to us. Why

(08:58):
are you allowing people to go ahead and try to
hurt people that are doing their jobs just because they
think that illegal should be able to stay where they are. Well,
it's illegal. And there's the problem we have. We can't
cross over to what's real and what's not real anymore.

(09:18):
What should be happening, what shouldn't be happening. Because it's
been a mess for a long period of time, and
if people that can fix this is Congress. Congress needs
to step up and say this is what's going to happen.
We are going to clean out the criminals, the bad people,
the people.

Speaker 2 (09:36):
That shouldn't be here.

Speaker 1 (09:37):
And this was created, by the way, by the open
borders as we all know it, from Biden, and for
some reason he couldn't close those borders for all these
different reasons. But we know that you could have closed
it if that's what you want. We don't even hear
about it anymore. But now we got to clean it
out because that's job number two. Now, job number three
of the plan needs to be angry is working on

(10:02):
a total immigration reform, a total one, a whole new one. Okay,
who should be here? Who's not here? How the students
come here? Who and the students come here? What do
they need to do to stay here? I don't want
people coming to my country and taking our benefits and

(10:23):
all protection and then tearing us down. Could you imagine
inviting somebody over to your house for dinner and all
they do is tell you how bad the food is
and how ugly your wife is and how bad your
kids are while you're feeding them and protecting them. Come on,
we don't want that in America. This is what's happened.
You can criticize America. As an American, you might not

(10:47):
like it, you might not like stuff. You want to protest.
That is your right, but being violent is not your right.
Hurting other people is not your right. Hating others is
not your right. Whether you're a Republican, far right or
a liberal or or far left, it is not your
right to have hate speech or to be violent against

(11:08):
anybody on your side or the other side.

Speaker 2 (11:11):
It just isn't What is the right, you're stating your point.

Speaker 1 (11:15):
What is not right is someone that doesn't is not
an American to be here on our vices or whatever
and try to hurt America. I was talking to somebody
the other day. Their family came over from my Iraq.
I said, why are you over here? I said, do
you like it? Sort of Well, what do you like?

(11:36):
He says, well, we feel safer. I said, expound, Well,
you know where they were living. Obviously they didn't feel comfortable.
They didn't feel comfortable in the streets of Iraq. So
they've come here to America and they happen to be
living in Tucson.

Speaker 2 (11:52):
I said, what don't you like?

Speaker 1 (11:53):
They go, well, you know, I don't like the way
people look at us sometimes and you know, and they're
very racist. I said, do they say racist things? They said, no,
it's just the way they look at you. I said, okay,
I get that, and I'm sorry that pig that you
feel that way. But how about maybe they're not racist,
and maybe there's just curious.

Speaker 2 (12:13):
I get it.

Speaker 1 (12:14):
When somebody's wearing a burker and stuff like that, it
looks different, right, But it doesn't mean the racist.

Speaker 2 (12:19):
They're looking at the difference no different than.

Speaker 1 (12:22):
If I was in Iraq wearing my jeans and a
T shirt or Tommy Bahamas shirt not fitting in. People
will look at me and go, hmm, what's he doing here? Okay,
doesn't mean the racist, means the curious. Now people are
saying stuff or being violent against you. That's absolutely wrong,
and that is racist. And I said, so you know,

(12:45):
you think you're the only ones. I said, I've been
hearing nothing but a hard time now for the last
couple of years.

Speaker 2 (12:50):
Because I'm Jewish. He goes, you're Jewish. I go, yeah,
I'm Jewish.

Speaker 1 (12:54):
He thought, He said, I thought you were a white
Christian And the way he said it was like, what
is wrong with the white Christian? But then when I
told him I was Jewish. He goes, well, nobody really
knows that. I said, that's my point. But once they
know it, they are racist towards me too if they

(13:14):
do not like Jewish because where we are today, and
nobody should be racist A bounced anyone. But how you
deal with it and how you feel about it, and
how you go about your life with it. But if
somebody's like that, just like with that, your protectionism goes up.
You're a little bit more aware of your surroundings because
you don't want someone to blindside you.

Speaker 2 (13:32):
And I get that that's wrong. We don't want to
live that way.

Speaker 1 (13:36):
But we have to understand and be confident in who
we are and understand why we're where we are and
deal with it and make it better. I said, well
you you, and I said, you and I are talking
Iraq Jewish. Well, right, I'm not. Didn't live in the
Middle East. I know what's going on. Obviously it didn't
come from Israel. But I understand as a Jewish heritage

(14:00):
what's going on. I said, But we didn't go down
the road, and I didn't really want to see where
he was going with that. Being Jewish and being Iraqi
and being in the Middle East and what's happening. I
just let it go. But it's interesting. It's an interesting
state of where we are right now and what's going on.
But Congress needs to fix it. Because if we have

(14:24):
a good immigration system and it starts that way, and
people are pretty confident that probably most of the people
that are here illegal and most of the people here
working hard, most of the people here respect America, guess
what happens that racism, that feeling of that bad field
goes away, because we become that melting pot. There's still

(14:48):
going to be pride to who you are. I mean,
think about growing up in Boston or New York. You
had all your little divisions. You had Chinatown, you had
the little Italy. Yeah, you had the hesthetic Jews on
one's side. They all had their blocks. The Irish Catholics
are somewhere in Boston. Then you had the Christians at
another place. Then you had the Jewish people someplace else,

(15:09):
and you had the Asians someplace else. Everyone congregates to
their own because it's comfortable in the big cities. But
if we all felt that we're all here to support America,
we're all here to do the right things and make
America the strongest nation in the world.

Speaker 2 (15:32):
Then we all pulled together no matter what you are.

Speaker 1 (15:35):
I know, I always bring this up about the locker
room in sports, especially football. You don't care what color
someone age, You don't care what religion they are, You
don't even care what their sexual preferences. All you care
is will they do the job with you and pull
together with you and to do the things they're supposed
to do to receive the outcome that you want, which

(15:57):
is the win. That's what people care about. That's what
people do. This whole country should be one big locker
room where we all are pulling in the same direction.
But we're all individuals and how we get there, but
we've pumem together as a team. We become such a
narcissistic society ever since we came out with iPhones and

(16:22):
personal computers and everything for the individual to plug in
and plug out of society. Everybody cares about themselves and
very few people care about other people. That's the problem
we have, and we got to resolve that for us
to move forward. So I see this government shut down,

(16:43):
Is it going to affect the markets that haven't so far?
If it continues for a long time. It probably could.
If we go ahead and we don't pay our bills,
then that's a problem. But we're not going to do that.
But it is interesting what's happening. And I am happy
to see that Trump put a deadline at six o'clock

(17:03):
on Sunday night that Hamas either agrees to the cease
not the cease fire, cease fire peace agreement, and not
just for now, but for their future. And I like
the fact that he brings her. I ran into it too,
and everybody else in the Middle East. So for everyone
that thinks that he is a war mangra, when is

(17:25):
someone going to give him credit for trying to resolve
these conflicts, actually sitting down with people and resolving stuff.
That's what's missing, and that's what was missing from the
last administration. Whoever was running the country certainly didn't want
to communicate it and didn't want it showed up in non.

Speaker 2 (17:47):
Communication everywhere else.

Speaker 1 (17:49):
But you could see on such a short period how
we can fall off the cliff and get back on
top of the mountain.

Speaker 2 (17:56):
Now. I know everyone doesn't agree with it.

Speaker 1 (17:58):
I know a lot of people hate Trump, and I
get that, Okay, they don't like them, that's fine, but
respect the fact that he's trying to make peace in
the Middle East. Respect the fact that you thought that
he was Putin's puppet and that he will not put
up with this. That he is grabbing NATO to get
together to show strength as one big unit. All right,

(18:19):
That's what's been going on since he's been in the presidency,
is the first time trying to get people together as
a big team. Together, we are stronger, and as a world,
we have to do that. There is so much stuff
that has to be done together, especially with all the
cyber criminal activity going on, all these scams going on.

(18:40):
That's what happens when you increase technology. If these people
that are so smart to be able to come up
with these criminal cyber and tax and all, could you
imagine that they.

Speaker 2 (18:50):
Put it together for good use.

Speaker 1 (18:53):
They really put it in the real world on how
much more money they can probably make because they're brilliant
to be able to.

Speaker 2 (19:00):
Do that stuff.

Speaker 1 (19:01):
But they're evil, and there is a lot of evil,
and they don't think they're evil because it's become normal.
It's the norm to be able to be violent. But
for some reason, there's always the left that is so
much more violent. And I know when I say that
everyone brings up January sixth, I get it. I hate

(19:22):
January sixth. I wish that never happened. It happened, and
I'm not proud of it, and they should never be
proud of it.

Speaker 2 (19:28):
Okay, but it doesn't continue to move on.

Speaker 1 (19:34):
When a very right person got killed like Charlie Kirk,
you didn't see violence, You've saw unity. But as soon
as the ice goes in to do their job, what
do you see. You see violence and you see the
same people being brought there, paid there to create this
violence and do the things they're doing. Of course, there

(19:57):
are going to be some people that get rolled up
that probably shouldn't be rolled up in leaving here because
they've been here a long time. But if they hear
so long, why didn't they get legalized? Why didn't they
go through the process. That's what I ask people when
they know, why don't you go through the process. And
then when I meet people that have come from other
countries all around the world and they did go through

(20:19):
the process and they are Americans, I ask them about
how do they feel about the ones that have just
come here?

Speaker 2 (20:26):
Regularly? They don't think it's fair. They don't.

Speaker 1 (20:31):
They don't think it's fair that they have to pay
for them out of their own taxes when they've done
everything they were supposed to do and gone through the hardships.

Speaker 2 (20:41):
So we got to get back to.

Speaker 1 (20:43):
Instead of the schools teaching the curriculum that this Teachers
Association union has been wanting them to moving so far
to the progressive left.

Speaker 2 (20:52):
At least let's get in the middle.

Speaker 1 (20:55):
Let's make colleges at least allow conservatives and liberals to
have conversation on both sides. Let's cut out the hate,
Let's cut out the demonstrations that actually destroy buildings and
hurt people. Let's get back to communication of both sides
so you really learn on what's going on.

Speaker 2 (21:16):
I remember going to college.

Speaker 1 (21:17):
We talked about everything, everything, both sides. And you know what,
most people are always in the middle. Most people are
in the middle. I remember when I went to school.
It was a small school in the South. We had
sixteen African Americans and six Jews. And if you don't think,

(21:38):
we were the minority, and people looked at us like
what is that is? Like, Okay, guess what you're gonna
find out? What it is, and there was hatred trust me.
I was called di a little different names when people
Some people got drunk because they didn't know the difference.
My son had to go through the same thing a
couple of times when he was at Kentucky.

Speaker 2 (22:00):
Yess what.

Speaker 1 (22:01):
Instead of going ahead and becoming violent and physical, I communicated,
why do you hate me? Why do you hate me
just because I'm Jewish? Why are you saying those things?
And then I never went away and went away for
I don't twenty thirty years and now it's back. It's like,
why do people hate someone for someone else? It's something
underneath that And I can't wait to see this all stop.

(22:25):
But it's going to start in schools of teaching in
the middle, not left in the middle, not right in
the middle, both sides. Let kids grow and understand. Now
we know we got to change education in Arizona. I
mean I heard we just dropped the number fifty. You
know how many states there are fifty? How can we

(22:48):
be at the bottom? How can we be pride? How
can we allow the governor to stay in another session
when we're number fifty in education?

Speaker 2 (22:57):
You got to put education at the top. You want
to bring companies here.

Speaker 1 (23:01):
You want to bring labor here, you want to grow Arizona,
you want to get a tax credit bill down. We
need to go ahead and educate our children in the
state of Arizona. I'm understanding that the third grade A
reading level is so poor, so poor. I'm starting to

(23:23):
investigate this a lot more to make sure that I
got my numbers right.

Speaker 2 (23:27):
But it's unbelievable.

Speaker 1 (23:29):
How many illiterate people we have as they're trying to
get through high school and stuff.

Speaker 2 (23:34):
It's just not right.

Speaker 1 (23:35):
These are the things we got to put a foot
down in the state that we live in. This is
where it really matters. We can't do stuff that much
on a federal basis, and a thing we can do
is support. We got to have our opinions, but we
need to do stuff on a local and state basis,
and we've got to get better. When we get all
this together, Imagine where the markets are now. If we

(23:56):
can do this and this economy grows and does the
things that needs.

Speaker 2 (23:59):
To do that twists are actually working.

Speaker 1 (24:02):
Wow, your retirement plans are just gonna blow through the sky. Okay,
so let's let's hop that happen. And you know it's funny.
Nobody talks about that now, but boy did they talk
about it when the markets went down at the beginning,
when he started this terror thing.

Speaker 2 (24:17):
We'll be back. We got a lot more to talk about.

Speaker 1 (24:19):
I'm so happy you guys listen to The Money Matters
with Dean Greenberg.

Speaker 3 (24:24):
Good morning, and welcome back to the Money Matters Show.
We appreciate Dean dropping off and giving us his monologue.
We all love that and a lot of common sense.
It's the I've always I called him the Tucson Trump,
except he's I think he's smarter than Trump, and he's
got a bigger heart than Trump, and he's better spoken
than Trump despite the New York accent. Right.

Speaker 4 (24:43):
Yeah, and uh, what he was largely talking about, you know,
in the first part of his monologue was how stretched
this market has become, so stretched, so many parts of
different industries have just taken off one hundred, two hundred,
three hundred percent. Games gains seem to be normal around
each and every week. Whether it's nuclear, whether it's quantic computing,

(25:03):
whether it's AI data centers, rare earth materials, name your industry,
every single one of those seem to have a name
in there that has double triples, quadruples.

Speaker 3 (25:13):
Hearkens back to the irrational exuberance from green Span back
in ninety six and Paul of course a week ago
saying that the market was stretched and we know that.
And when green Span has gave his irrational exuberance speech
in ninety six, that was right before the market just
exploded upwards. So don't fight the tape. That's something that

(25:34):
I've learned from many decades in this business. Just don't
fight the tape. The market wants to go higher. Will
there be pullbacks along the way, Yes, there has to
be pullbacks along the way or you end up with
a crash. I mean, if it just gets too much.
And right now we're out fourteen percent on the ear,
that's not extraordinary. It feels extraordinary, Todd, because we came
off that April bowl. You know, we're thirty nine percent

(25:57):
higherly we're in April. But you could argue, if we
knew now, excuse me, if we knew then what we
know now, April would have never happened. Yeah, you wouldn't
have had that big sell off in April. What you
had is something that we did not dealt with before.
And when investors are presented with something they haven't dealt
with before, hitting the cell button is often the answer. Yeah.

Speaker 4 (26:20):
And the only reason that we had a moment in
this earlier part of the decade of slow economic growth
in terms of stock market was because we had a
rising interest rate regime. And that's something we hadn't seen
in almost forty years, and there's been times where they'd
risen interest rates, but it wasn't for any prolonged period
like we saw in twenty twenty two. That really was

(26:41):
a response to the inflation we saw, which slowed economic
activity down by itself, but then higher interest rates also
slowed economic activity down. So pretty much the low that
we saw in that October twenty two range and ever
since then, if you pull up a chart of the
S and P it's really just bottom left to top right.
And i'd largely do to be more liquidity in the system.

(27:01):
Right as the Fed lowers rates, as there's expectations of
lower interest rates, there's going to be more liquidity in there.
But also what's happened a lot is the dollar. Right
the dollar has come down quite significantly from where it
was as a very high level. So when you have
high interest rates, the currency of the dollar is going
to be relatively high in value compared to where it's

(27:23):
going to be now. So lower dollar helps everyone in
terms of asset picture because the liquidity in the system
can increase, and that means all asset prices can increase.

Speaker 3 (27:33):
Right if you have a lower dollar, then are goods
or cheaper overseas, and so it's extremely good for a
multinational company. The three ms in the Johnson and Johnson's
of the world. Johnson Johnson hit a new all time
high on Friday. Is Quaer quietly hitting a new all
time speaking of quietly the world's most valuable company, and
Vidia became more valuable last week. Is it also quietly

(27:55):
hit a new all time high. I think it one
of for six consecutive days. And then on Friday there
was a little bit of selling because of the some
concern about Trump and China and delaying the shipment of
ships to China. But I kind of remind people the
quarterly report from Nvidia last quarter had zero for Chinese sales,

(28:17):
and it was a really good, solid report with good guidance,
and it had zero.

Speaker 4 (28:22):
And it's now at forty percent for the year. And
that's after I think A three twenty four. I mean,
it's it's been quite spectacular run. Now over four point
five trillion dollars, largest company that this earth has ever seen,
and now we have an other company's coming right behind it.
There's been a couple other Max seven's that we've been

(28:43):
talking about. Tesla got really close to its all time high,
then it bounced off of it in the in this week.
I mean, I think it was around Tuesday Wednesday when
it got close to it got.

Speaker 3 (28:53):
Very close to its all time high, and then sold
off hard Thursday and Friday. Yes, remember the seventy five
hundred dollars CACK credit is now gone and it will
impact EV sales now. They reported third quarter sales. All
of the electric vehicle companies reported third quarter sales were
just off the sharks. Well, of course they were. That's

(29:13):
the end of the seventy five hundred dollars tax credits
of tever thirtieth, So of course the third quarter sales
were strong. The CEO of Ford believes that EV sales
will decline by fifty percent. It's going to be interesting
to watch by fifty percent again, Todd, you mentioned Tesla
was pushing towards its all time high. And then I

(29:34):
guess somebody must have woken up late in the week
away think if the tax credits have expired. Their robots
are not exactly rolling out of the factory yet it's
two hundred times earnings. Maybe we ought to take a
deep breath here.

Speaker 4 (29:48):
Another company getting close to its all time high as Apple.

Speaker 3 (29:52):
Unbelievable. Yeah.

Speaker 4 (29:52):
And finally, I mean year to date still only I
think about five percent.

Speaker 3 (29:56):
Yeah, it's not as much at all. It's one of
the worst performing dovestocks.

Speaker 4 (30:00):
And I think probably the worst MAG seven now the
Tesla has come back so ferociously Amazon.

Speaker 3 (30:07):
Amazon is the worst perform in MAG seven. Wow.

Speaker 4 (30:09):
Yeah, Yeah, came down this week.

Speaker 3 (30:12):
That's another one, like flat on the year.

Speaker 4 (30:14):
Yeah, sold off pretty hard this week.

Speaker 3 (30:16):
Yeah, it's really really interesting. I think we talked about
that last week. Is Amazon being the last one?

Speaker 4 (30:21):
You know.

Speaker 3 (30:21):
The government shutdown didn't seem to have much of an impact.
One of the good things is that no government reports,
which are typically market moving. The employment report due on
Friday was probably not going to be a great one.

Speaker 4 (30:34):
We guessed last week if we had we're gonna have
a government shutdown or not.

Speaker 3 (30:37):
Do you remember I tell me about it.

Speaker 4 (30:40):
Yeah, you got to listen back. You said we weren't
gonna have a government shutdown.

Speaker 3 (30:44):
I said we weren't going to Yeah, well we've only
done it ten times in fifty years, so the odds
were with me. I always like to play the odds, right, So.

Speaker 4 (30:51):
Yeah, But these Democrats, though, they were so stubborn. It's
kind of I'll tell.

Speaker 3 (30:56):
You one thing I do, one thing I would not
want to do. Todd, maybe you do it. I would
not want to play chicken with Trump. I don't know.
The man likes to relish, has been playing chicken with people.
He's been doing it his whole life, and he's pretty
darn good at it. And I don't want to play
chicken with Trump.

Speaker 5 (31:12):
In terms of the market, it usually doesn't have a
huge effect on stocks, though historically speaking that stocks end
up going up.

Speaker 6 (31:19):
No.

Speaker 3 (31:19):
I mean Trump is working with world leaders and working
on budget issues and trying to run the country, and
the Democrats are running around complaining abroad. Tom Burrows, it's
the craziest thing. It's like, there's no It's the most
unpopular political party in the history of political parties, and
it just keeps getting worse.

Speaker 4 (31:38):
But the more government shutdown we have, the more likelihood
we're going to have another rate cut, And pretty much
everywhere I read that helps the raate cut scenario even more.
More spending needing, then they're not going to spend less
because of this government shut down.

Speaker 3 (31:52):
The average government shutdown of those ten government shutdowns over
the last fifty years, the average has been in four days.
That's been the average now there, and it's only skewed
because there was one time when it was I think
thirty five days. Interestingly, Trump was president when eighteen twenty eighteen,
twenty eighteen, it was thirty five days something like that. Yeah,

(32:16):
most of them are one or two days. That thirty
five days really skewed the average. Yeah, but it full disclosure,
Trump was president, right.

Speaker 4 (32:26):
That's gonna be interesting. But again, I think the biggest
thing for the market is just not having labor market
data this week, maybe not having some of that economic data.
A lot of that can be seen through some of
the corporate reports, so that's where it's where it's going
to have to come from for now. And then just
some economic modeling from different firms as they release their
you know, Goldman Sachs, they have their own sentiment indexes

(32:47):
and different things like that. So that's what the market
will rely on. So it's not completely in the dark,
but it doesn't love not having the data it's used to.

Speaker 3 (32:55):
No, we like to be fed data. We like to
react to data. And the government jobs are for it
is let's say that, let's do that next segment.

Speaker 7 (33:03):
Yeah, real quick, discimer, I'm going to do discomer, real quick.

Speaker 5 (33:05):
The show is sponsored by Greenberg Financial Group and you
can listen on seven to ninety canis cee r iHeart
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(33:27):
You could always give us a call. Five two zero
five four four four nine zero nine.

Speaker 3 (33:32):
Economy continues to show signs of slowing IM services. It's
an important number because it makes up seventy percent of
GDP went to fifty from fifty two now fifty is
is equilibrium between contraction and expansion. So it's just come
all the way down to neutral now and looks like

(33:53):
it's going to maybe slide into contraction. That doesn't mean recession,
means contraction. And yet I see a Caterpillar hit a
new all time high to day. Well, you if we
can need economy, Caterpillar is not going to do great
and need it hit an all time high today. On
the other side of that, coin oil dropped four fifty
this week down to sixty buck oil. If the economy

(34:16):
is going to be strong, oil demand will be strong
and prices will ride. So that's, you know, such mixed signals.

Speaker 4 (34:23):
Contrary, the only thing definitely about oil is so interesting,
like you said, the mixed signals, is it, because there's
just so much more supply. You don't see reports about
that or anything, and not necessarily that we would keep
up on that anyways, But as technology improves, maybe it's
just cheaper and cheaper for them to get the oil
out of the ground. That's something we would have to
look up. But it seems maybe that's the only thing

(34:45):
that could just keep oil down so low, because how
can you have all this economic activity elsewhere and not
have like you said, oil somewhat increase.

Speaker 3 (34:54):
Yeah, it's yeah, somebody's wrong, either the oil market's wrong
or the market wrong.

Speaker 4 (35:01):
Somebody's wrong, or there's just a new imbalance in the
supply and demand. Right, it could be.

Speaker 5 (35:06):
But I mean, could that be rooted from more evs
on the road.

Speaker 4 (35:11):
Well, there's not less demand of oil. I don't think
that it'd be. The only thing that could change is
the supply. I think, if anything, the demand has increased
for energy.

Speaker 3 (35:18):
I agree, So no attention to increase, just over time
as a number of people. And even if you have
more vehicles that are evs, there are more vehicles overall. Yes,
you're still more evs.

Speaker 4 (35:29):
He definitely could be like supply right, maybe they're just
more people have oil now that's selling it. That would
Russia can get their oil out there, right.

Speaker 3 (35:38):
And gasoline is not the only thing that we use
oil for. So we'll be back with the rest of
the show right after this message. Thanks for joining this.

Speaker 4 (35:46):
Welcome back to the Money Matter Show. My name is
Todd Glick. I'm here with David Shirtwood, Sebastian Borsini, and
Dylan Greenberg. It was another high flying week. The one
of the interesting sectors this week was the quantum stocks.
They again took off quite significantly. Some of the tickers RGTI, Righetti,
qubt qbts ion Q, island Q that these stocks have

(36:09):
had incredible runs and they continued that run this week.
I mean almost every single one of those was up
at least twenty percent on the week. Quantum seems to
really be years away, but there's a lot of hype
in these stocks. And then really, I mean, if you
look at IBM, IBM returned this month. If you look
at the doll stocks as one of the highest performers,

(36:30):
it's now back up to the best performers of the Dow.
And again because IBM has a very strong quantic computing division.
They had a report last week that said that I
think it was HSBC used them for bond trading and
then improved their bond profits by over forty three percent.
Oh wow, So quantic computing having a practical source of

(36:51):
application this early in the game would really change what
potential valuation you would put on these companies. Well, IBM
is really the one that you've seen ext have practical use,
though none of these other companies I know anything about
have issued any type of product similar to IBM. But
what I know is IBM and Google definitely seem like
they have the highest quantic computing at this time.

Speaker 5 (37:12):
And to your points from the last segments, you know,
with the government shutdown, that's increases the likelihood of a
rate cuts. Obviously all these small caps are going to
get the bid. And that's what we saw in the
indexes this week. I WM Russell two thousands, one point
percent was the top performer this week. You start to
see all this money flooding into these small cap companies
that haven't actually proved themselves yet because the cost of

(37:34):
borrow is going to be cheaper for them.

Speaker 3 (37:36):
And you do a report every month about the Dow stocks.
Sebastian and we don't follow the Dow as an index,
but it's interesting to look at the thirty Dow stocks.
Absolutely and we noticed it. Like Todd said, IBM was
the number one performer. Number two was Caterpillar, Number three
United Healthcare the worst performing stock in the Dow. United

(37:56):
Healthcare with up eleven point four percent in September and
had a real strong Friday. I thought it was up
another six percent on Friday, Caterpillar, all the number two
performers also a strong Friday, up about ten points. The
number one performing dowstock Goldman Sachs. Not surprising. They are
really really busy with all of these IPOs being brought

(38:18):
to market and they're making money handle or fists. And
of course Nvidia, who everybody loves, is number two. At
the bottom of the list still United Healthcare, but it
looks like it's going to pass Salesforce dot Com and
move out of that bottom spot.

Speaker 5 (38:31):
Yeah, I'm waiting for Salesforce to probably move out of
there at some point. Nike on you know, they're part
of the Dow. They reported pretty good earnings. It's been
a tough year for them. They'red down on the year
about eight percent. They did report, Like I said, they
did report better earnings this week, and I think they
rose about three to four percent.

Speaker 3 (38:49):
A story I want to tell on both sides of
the hour. So let me let me talk about We
all think about AI. We talk about AI a lot,
we worry about AI. Some were concerned about AI. We're
excited about AI. All of the things that will do.
It's kind of like the internet. The Internet was the
worst thing and the best thing that happened right in

(39:12):
the twentieth century, the worst and the best. So now
in the twenty first century, maybe it's going to be AI.
Had a real life story about AI. And we've been
saying all along that we thought the biggest beneficiary of
AI was going to be medical. And we have a
client who had a son, who has a son who

(39:35):
had a horrific car accident thirty three years ago that
left him a quadriplegic. He's currently in TMC intensive care,
literally fighting for his life with problems that are associated
with being a quadriplegic. For thirty three years, our client
used chat GPT every single day to moderate monitor vital signs.

(39:56):
He could come in. He typed his son's vital signs
into chat GPT and it would tell him how his
son was doing. Any new medication that was presented for
his son, chat GPT would tell him yes, no, the
dosage is high loo whatever. Most important thing he had

(40:17):
a ball obstruction, and a ball obstruction is a very
very serious thing because if you can't vacate, that's the
term doctor. If you can't vacate, you're essentially going to
pop an organ and then the waste will be inside
your body cavity and you're dead. I mean, it's not
a good thing. So the hospital tried plan A, and
I honestly don't know what plan A was, but their

(40:40):
plan B was a colostomy. And eclostomy is where you
end up wearing a bag for the rest of your
life and your ball goes into the bag and you
empty the bag periodically, but you're lugging the bag around
for the rest of your life. So that was plan B.
He went to chat GPT and asked chat GPT about
this and chat g says, no, no, the colostomy is

(41:02):
plan C. Plan B is this. He went to the
hospital staff and in all fairness, you don't deal with
a lot of quadriplegics, even in a hospital, not especially
people that have been at quadripleg for thirty three years.
So he goes to chat GPT Patrick said, here's no,
this Plan B is what you should be doing. He
goes to the hospital staff said this is what you

(41:25):
should be doing instead of the colostomy. They did that
and it worked.

Speaker 2 (41:29):
Wow.

Speaker 3 (41:30):
And I said to him, I said, so you're telling
me that you believe that chat GPT saved your son's life.
He goes, absolutely, there's no question about it.

Speaker 7 (41:42):
That's amazing story.

Speaker 3 (41:43):
I realize AI story.

Speaker 7 (41:44):
And totally not you know, it's it doesn't compare.

Speaker 5 (41:47):
But I do remember about a couple of months ago
going to the doctor and getting a blood test and
kind of just waiting for my results back for my doctor.

Speaker 7 (41:54):
I'm not too worried about my health. I'm pretty young, right.

Speaker 5 (41:57):
I just ended up putting my blood results into chat
and I said, tell me what I need to know,
and it gave me a much of information I was
healthy and told me what I should be increasing vitamin
wise vice versa pretty remarkable tool, phenomenal.

Speaker 3 (42:13):
I was surprised to learn this week that Reddit stock
because and Sebastian you pointed out at where we were
talking about this, about two weeks ago Reddit hit a
new all time high, and you pointed out that their
user active daily users have been declining for quite a
period of time, right right, and yet two weeks ago
they hit an all time high. This past week we

(42:36):
learned that chat GPT is no longer using redbit Reddit sorry,
Reddit as a source of information, which made me think, really,
you've been using chat Chat GPT has actually been using Reddit, obviously,
amongst dozens of other websites. But Reddit is essentially random
people's opinion. I don't know that that's truly a trusted source.

Speaker 7 (42:58):
I wonder if they should stop wikild.

Speaker 3 (43:01):
I don't know. I don't know.

Speaker 4 (43:02):
So there's a lot of things like with Reddit, though,
you can sometimes get information that is not necessarily the
public opinion of something, but an alternate opinion.

Speaker 3 (43:13):
No, I get it, I get it.

Speaker 4 (43:14):
Yeah, And I think you definitely it's probably better to
take Reddit out because of the overall benefit of not
having bad information. But it kind of limits the scope.
The more you limit the scope of data, then it's like,
are they making it a certain way phenomenal?

Speaker 3 (43:29):
I mean, it's phenomenal. That the computer can go through
umpteen websites in a matter of seconds and then lean
the information for you is just mind boggling.

Speaker 4 (43:41):
Yeah, I mean, and just imagine if the healthcare professionals
kind of in any kind of professional sense. I think
you're a little stubborn to use new technology. But if
those healthcare professionals use AI the same way that that
patient's father did, right, they probably would have known that
quicker known what questions to ask more. Right. So it's

(44:01):
like I I talk about this with financial advisors, people
are like, are they going to be replaced by AI?
I don't necessarily think. I think you could. More people
could probably do their own financial planning with AI, right,
But still it will the financial advisor will be able
to ask the questions that need to be asked to
the AI. I think it's going to help our planning.
I think it will help our asset allocation over time

(44:23):
as it gets better and gets more data into it.
But still, you got to know what an asset allocation means, right,
there's certain levels of barriers that still. I think more
people will be able to cut their own hair, but
still there will be quite a few people that won't
be able to or don't wan't want to.

Speaker 3 (44:38):
Gold continues to stream to new all time highs, up
another one hundred bucks thirty eight to eighty two.

Speaker 4 (44:44):
Silver was up like three, got over thirty nine hundred gold.

Speaker 3 (44:49):
Yeah you said, Todd, you said, it's up fifty the year,
forty the year and mind boggling.

Speaker 4 (44:54):
Yeah, just incredible run. Four thousand dollars seems right around
the corner for that thing.

Speaker 3 (44:59):
Oh yeah, another explosion this week was bitcoin. You're bitcoin
all most all time highs. Might see it this weekend, right,
I think it.

Speaker 4 (45:06):
Just touched one twenty four.

Speaker 3 (45:07):
Yeah, yeah, my all time high.

Speaker 4 (45:11):
Four. I think so of it. But yeah, I mean
that thing looks prime as well. A lot of things
look ready to pop. I think the one thing to
me is the S and P. I see a real
big FIBONACI level of like sixty seven seventy as a
real big resistance. It's gone up so fast. We talk
about October being home to some of the biggest crashes,
historically one of the better months, but still with I

(45:33):
think we're up like five straight months something like that. Eventually,
maybe not, we even end the month down, but at
some point during this month we have a week or
two that's maybe negative.

Speaker 3 (45:43):
I would think the net I would think next week
is going to be negative. It just feels like it. Uh.
The SNP hit a new all time high on Monday,
and every one of the major in deceies hit an
all time high, from the S and P to the DOW,
to the Russell two thousand to the equal weighted all
of them all time highs. So but on Wednesday, the
first of October, s and P, and Dean said that

(46:06):
as once the quarter ends, he thought there might be
some selling coming into October. We didn't see it. On Wednesday,
s and P was up about twenty points to an
all time high. But then Thursday SMP was flat. Friday
SMP was flat. Now Friday was very weird because the
doll was up five hundred points thanks to Caterpillar, IBM,

(46:27):
and United Healthcare. That's why we don't follow with the
Dow because three stocks have the have an index up
five hundred points, where a third of the stocks in
the index were actually down on the day. And it
was the Nasdaq was down on Friday, the SMP was flat,
and the Dow finished what two fifty up, But it's
not representative.

Speaker 5 (46:46):
Yeah, but then you on the other side, you had
IWM up about a percent then on Friday.

Speaker 3 (46:52):
I didn't look at it on Friday the Russell two thousand.

Speaker 5 (46:55):
Yes, right, Yes, IWM is an ETF verchion events.

Speaker 3 (46:59):
You know, I think we were all agree that most
of the metrics started screaming caution. I don't think there's
a crashing on the horizon, but you never know. When
those things happened. They come out of the blue. They're
typically black swan event, and I think it would take
some type of a headline making event for that to happen.
We'll be back with the rest of the Money Matter

(47:20):
Show coming up on the top of the hour, and
we'll be back with more right after this message.

Speaker 8 (47:27):
Back to the second hour of the Money Matter Show.
Thank you everybody for tuning in and for those of
you just tuning in. The Dow was up one point
one percent last week. The S and P five hundred
was up one point one percent, the NAZAC was up
one point three percent, and the Rustle two thousand was
up one point eight percent. The equal weighted SMP five
hundred was up one point four percent. Everything up over
one percent last week, which means the investors were just

(47:49):
shaking off the government shutdown, which usually would happen because
again the markets are about a six month leading indicator.
I highly doubt that this government is going to be
shut down for six months. They just move on. Investors
just move on. And what investors piled a lot of
money into last week was small caps. It's the reason
why Russell two thousand was up the most at one

(48:09):
point eight percent, and it's really making a screaming comeback
on the year to date as well, up more than
equal weighted now, which he was lagging behind for the
first half of the year. And a big reason is
because the FED is dropping rates. They lowered rates by
twenty five basis points in September. The thought is you're
gonna either get one or two more cuts for this year,
and moving forward in the next year, you're gonna get
more cuts, which makes it cheaper for small companies to borrow,

(48:31):
which makes them start innovating more, which makes them start
projects faster. And that's why a lot of people started
pouring money into the small cap companies, especially quantum and
especially rare earth minerals, because that is seeming to be
the next wave of technologies.

Speaker 9 (48:48):
You have the AI craze, which are.

Speaker 8 (48:49):
In the midst of in the beginning stages of it still,
but quantum computing and all of that stuff is just
a whole other level, which you read some articles on
the different stages and different where everybody's at with like Google's.

Speaker 9 (49:02):
One of the leaders IBM.

Speaker 8 (49:04):
They're saying it's about a five year idea until quantum
is where AI is right now. But also Google found
something faster. I forgot what it was with quantum. They
hit a milestone faster, about two years faster than they
thought earlier this year, so who.

Speaker 9 (49:19):
Knows where that's going.

Speaker 8 (49:20):
But that's why a lot of money is going to
quantum because they're thinking that's the next step in this
AI revolution. And then rare earth minerals is a whole
other industry that's been getting a lot of attention lately
because China is the world leader and they've been the
world leader for mining rare earth minerals through the last
twenty years.

Speaker 9 (49:37):
In the US is wanting to catch up.

Speaker 8 (49:38):
The US is wanting to do it domestically, and they're
trying to catch.

Speaker 9 (49:42):
Up in a sense.

Speaker 8 (49:43):
And right now we have a depository in California, just
a mountain pass that's MP.

Speaker 9 (49:48):
They're the leaders.

Speaker 8 (49:48):
They're the only ones in the US that's actually producing minerals.
The other ones are in the discovery stage and showing
how they would mine it. You have NB which is
Neo Corporate Nebraska that's in developed in stage to show
how they would mine it. So that's middle stages. You
have Rare Earth USA in Texas, which is I forgot
the USA R is the tick or yeah, I forgot

(50:09):
the name of the basin in there.

Speaker 9 (50:11):
I can't Texas Basin.

Speaker 3 (50:14):
West Texas.

Speaker 9 (50:15):
They control that, Yeah, round Top deposit, that's what.

Speaker 8 (50:19):
And they just they went up on last week a
lot and because the government's talking to them, they're in
close talks with the White House about getting deals and
having the White House invest in Rare Earth and then
Rare Earth Elements, which is a r E m F.
That is the beginning stages. That's the most infant rare
earth company that's out there. They're in the the development

(50:43):
stage of the very beginning of showing you how they
would even get into the big deposit in Wyoming.

Speaker 9 (50:48):
So there's a lot going on.

Speaker 5 (50:50):
I think one of the big beneficiaries of this earth stuff,
especially if we could bring production here in the United States,
is going to be those companies like Lockheed Martin, Wraith Young.
A lot of these rare Earth minerals are actually used
in the missiles the F thirty five fighter jets. I
was actually reading a report about how many of these
minerals are used. These are huge inputs in again.

Speaker 6 (51:11):
Electric carves, yeahco morphones, chips, everything like R E m
F and MP are companies that they're mining rare earth
minerals that go for magnets and all that.

Speaker 8 (51:23):
And then they also and then the other ones like
USA are focuses on heavy rare earth minerals plus lithium
and other critical minerals. And then Neo Corporup and Nebraska
they're focusing on niobium, scandium, and titanium with rare earth
as a secondary product. So they're all different in a sense,
not necessarily directly competing with each other, they're just at

(51:45):
different stages in how far along are they in the
mining process.

Speaker 3 (51:48):
Well, in US rare earth del and you mentioned the
Texas company, they actually have a plant that they're building
in Stillwater that will build batteries. They will make batteries.
You'll remember we used to have to ship all of
the rare earth minerals to know they would fabricate them.

Speaker 8 (52:01):
Yeah, and that means that makes sense what they're the
company doing that because they're focused on lithium. Yes, so
they got that mine operation right. It's a it's been
a quiet industry for years, but it's really been wrapping
up in the last couple of years.

Speaker 3 (52:15):
I went, how about an educational segment, because I was
educated last week is something I had no idea about.
Do you know the difference between nuclear fusion and nuclear fission?
Seas you're shaking your head like you do.

Speaker 7 (52:29):
I've heard about it.

Speaker 5 (52:31):
I know that we have I think fusion, and we're
still trying to get fission.

Speaker 7 (52:36):
I might have it flips.

Speaker 3 (52:37):
That's right, you know, you got it right, You got right.
That's very good. Nuclear fusion is when you split atoms
and it generates heat, and that's how we run nuclear
power plants. Now. A much much more desirable thing would
be nuclear fission. Nuclear fission is where you combine atoms,

(52:59):
which generates heat. It's what the sun does. It's what
the sun does. You generate heat. The beauty of nuclear
fission if they can ever figure it out, and it
has to be at millions of the tests are run
at millions of degrees centigrade, millions of degrees so I'm
not sure I want to be in the same town

(53:19):
when that's going on, you know, where they're getting something
to a million degrees centigrade. But if they can figure
out nuclear fission, it would provide the same it would
provide multiple amounts of energy over and above nuclear fusion,
and do it with no waste, no waste at all.

Speaker 5 (53:37):
That's what a lot of these companies are trying to do,
like Oaklow for example.

Speaker 7 (53:41):
I'm pretty sure.

Speaker 3 (53:41):
There's no public company involved in nuclear fission.

Speaker 7 (53:45):
Right, but they're not. They're trying to get that technology.

Speaker 3 (53:47):
No, they're not involved. Nobody's involved in it. I tell you,
I want to chat GPT and ask, and it said none.

Speaker 7 (53:55):
Then nobody might.

Speaker 4 (53:57):
It says nuclear fission is an operational technology twoty and
companies have run fission reactors for decades to generate electricity,
power naval vessels and produce isotopes. Reactor vendors and advanced
developers includes Westinghouse, ge Hastaja, Rolls, Royce, SMR, nuclear nuclear fusion,
nuclear fission.

Speaker 3 (54:17):
Nuclear fission. According to GPT, there's no public company that's
involved in it. It's experimental.

Speaker 4 (54:25):
We've talked about. Are these small modular.

Speaker 3 (54:27):
Is not used on a commercial basis at all? Nuclear fission.

Speaker 4 (54:30):
Look, I'm not a scientist, so I'm not gonna sit here,
but I do know that those that's what the state
of OClO and SMR and these small module reactors. That
is why the hype is so big. It's because of
the vast amount of energy it can be produced for
the low amount of waste and low amount of energy
required to put into it.

Speaker 3 (54:48):
Well, if these companies are using nuclear fission, you're onto something.
Because it's supposedly experimental. There is no public company involved
in it at all. So I'm not saying you're but
the information I gleaned was anyway. I thought it was
interesting the difference between fusion and fission.

Speaker 4 (55:05):
I know, they're modular reactors. Exactly how a modular reactor works.

Speaker 3 (55:10):
They want a scientist like you said, that's kind of interesting,
that is.

Speaker 4 (55:13):
I mean, if you look at OKLA and SMR, they're
going up with that type of hype that they are
going to supply that type of energy, right, I.

Speaker 3 (55:21):
Think just that that nuclear power.

Speaker 5 (55:22):
I'm sorry, we got to go back a little bit.
Are you saying that fission is what the technology that
we have fusion?

Speaker 3 (55:29):
Fusion?

Speaker 5 (55:29):
Yeah, I think you have it, foliot flop flip, you
have it, flip flop. Fission is what we currently have
right now. Fusion fuses light atoms hydrogen isotopes.

Speaker 3 (55:37):
Like, I'm sorry, it's absolutely right, you got a flip flop.

Speaker 7 (55:39):
Yeah, that's why we're having you know, really careful.

Speaker 3 (55:43):
When I put this piece together, because I was going
back blah blah blah. You know, but yeah, that's fusion.
Fission is absolutely common, is how nuclear reactors are run.

Speaker 5 (55:52):
Fusion, and that's that's the technology that new scale all
these companies are trying to get.

Speaker 3 (55:59):
After nuclear fusion. My apologies, I haven't put That's why
I was shaking. Thanks no, thanks for clarifying it. Vision
and fusion kind of interesting, So Mike, thank you. I
felt smarter even though I messed up the report. I
feel like I learned something right.

Speaker 4 (56:17):
Yeah, but I do think that's like when you talk
about energy that NLR, the nuclear ETF it's up seventy
one actually almost eighty percent for the year. That's why, right,
I mean, even if it's just fission, that itself is
a lot more efficient than what the current fossil fuel
system is kind of set up to be. It's pretty

(56:38):
much more efficient than most solar panels, and it's much
more efficient than wind.

Speaker 3 (56:43):
And I never believed, I never believed in my lifetime
I would ever see our country reacting positively towards nuclear
energy ever again. And I'm thrilled. I'm thrilled because it
is the way we should be going. It's the way
a lot of country are going, and it's it's the future.
We need massive amounts of power, massive amounts of power.

(57:06):
There's a utility company in Virginia aees, and it's just
been a complete dog. Stock has done nothing to climb
fourteen percent on Wednesday on news that black Rocks Global
Infrastructure Partners is in late stage talks to acquire the

(57:26):
Virginia based utility. Again, this stock is the same price
it was seven years ago. It has done absolutely nothing
in a market where utilities have really done well. Right,
this is just a piece of junk stock, right, and
look at this fourteen percent because you know what, everybody
wants power. Everybody needs power. Hungry for power. We're seeing

(57:50):
it everywhere.

Speaker 4 (57:51):
I saw a very interesting video this weekend on YouTube
and it was from the Financial Times, and they did
one about data centers and the the real cost of
data centers that are unknown is kind of their way
of putting about it. Obviously, their spin seems to be
a little more to the liberal side of saying, hey,
these data centers are gonna be very costly on energy.

(58:12):
They're gonna mess up the ecosystem and increase climate change.
Water is obviously one of those big deals. It's funny though,
because when they even mentioned that, like some of these
data centers are gonna have closed loop systems and not
use some of the water, they're like, it's kind of
a double edged sword because then they're just gonna have
to use more power to offset. And it's like, well, yeah,
we know there's a power problem, and that's what the
nuclear solves, right. If we can have more power generated,

(58:34):
then the data centers aren't as costly. But something that
I'd never really thought about was the noise that the
data centers make. And apparently a lot of these data
centers are being made around residential complexes, especially in Virginia
that's kind of the data center alley, and they're expanding.
And the reason that there are in some of these
residential areas is because these metas and oracles and huge

(58:56):
companies apples get tax breaks when they put these data
centers in certain areas, right, and they get cheap electricity.
It's all about making it and most efficient. But they
actually have some studies now that says that this extra
noise that really comes from things like the fans it
requires a massive amount of coolingk for all these chips
in the building to stay at the certain temperature to

(59:18):
not overheat, right, So you have to have a lot
of fans. VRT is one of the companies that try
to help cool these chips through a water mechanism, but
there's also a lot of fans that is required. Those
fans make a lot of noise, and so even Amazon
had they talked about this in the video that Amazon
had to raise the vents around their fans to reduce
the noise to be to a suitable level. And people

(59:39):
around the data centers say they can't sleep, they're not
they have migrains and headaches all day. Whether it's true,
you know, you have to ask them. But they seem
like they really believe it. And there's a lot of
lawsuits that they try to bring about potentially that might
be in the long run issue where they're saying, hey,
we can't have data centers right by residentials. But that's

(01:00:01):
the only thing I've heard negative about data centers that
I'd never really thought about was the sheer noise of them.
They have a lot of radio frequency too. Some people
believe that radio frequencies have a very negative effect. There
are some studies that can prove that, right. I mean,
if you sleep with the phone next to you all
the time, there is some evidence there that it can
cause issues. So living right next to a data center

(01:00:22):
might end up being equivalent to living right next to
a terminal at airport. Right. Having that level of busyness
all around you is not we know, is not great
for health. It does lower health overall being that close
to a loud, noisy thing or that largely polluted of
the area. So that's probably one of the things that
I had never thought about with the data center side
of this huge data center boom that we're going through.

Speaker 3 (01:00:43):
I think I think there was a report and I
want to say it's on sixty minutes or one of those,
probably by six seven years ago about that very thing
about the noise that these data centers were making and
when they were in their infancy. Now hopefully they've come
a long way in terms of mitigating the noise, but yeah,
they're noisy. They need to be in the middle of nowhere.

Speaker 4 (01:01:03):
And think about how much more they're building now, right,
So it's potentially an issue you're gonna hear more of.

Speaker 7 (01:01:08):
Big I don't know why.

Speaker 5 (01:01:09):
I thought that you were gonna bring up the Sam
Altman video. I thought that's the video that you were
talking about. Did you see that, Dave No So. Open
ai recently launched Sora too, which is a new video
generation AI so you can make you can tell it
to make you videos. Almost immediately after, there's a video
of Altman. Sam Altman, the creator of open Ai. He's

(01:01:30):
being caught trying to walk out of a store with
a GPU and then pleading I need this for a
Sora inference. It's kind of a funny video and it
looks very very real. He's in this like a Walgreens
or a Target. He's he's stealing a mic chip and
he's like, I need it, I need it.

Speaker 9 (01:01:46):
There.

Speaker 5 (01:01:47):
I couldn't figure out a way to truly tell, okay,
is that video real or it's fake? I assumed it's fake.
It just makes you wonder what's to come in the future.
The cybersecurity companies are gonna have their hands full.

Speaker 4 (01:01:59):
Yeah, the videos myself and they were very realistic. One
of the most realistic versions of AI videos be seen
so far right there with Google's version. We talked about
who Google had the kind of the best video generator
for a while. Seems like Open Eyes catching up a
little bit. Grock has a very good one as well.
So there's the I mean, the video generation just one
to two years from now. I mean you're seriously going

(01:02:21):
to be maybe three years away from time Netflix to
create your own movie for We were.

Speaker 8 (01:02:25):
Talking about that too with the security footage that Sam
Alemans showed and it was all AI generated. There's going
to be a company that just blows up out of
security against this. How do you show then, Like we
were saying, the watermarks on these videos is how you
prove it. But obviously we can't see that with our
naked eye. So you gotta have companies that are just
gonna start focusing on that type of security only so
they could show that it's either AI generated video or

(01:02:47):
real because it's pretty hard to see.

Speaker 9 (01:02:49):
It's pretty hard to tell with that. And that was
the first video out.

Speaker 5 (01:02:53):
If there's an insane If there's any listeners out there
that haven't played with this or just you know, are
curious about it, go try it.

Speaker 7 (01:02:58):
It's called Sora too.

Speaker 9 (01:03:00):
R A two.

Speaker 5 (01:03:01):
I'm pretty sure you could go making accounts and do
a free subscription or something. Just tell it to make
you a video whatever you want. It's it's a cool
little task.

Speaker 3 (01:03:09):
Real and that that's that's from open Ai.

Speaker 7 (01:03:12):
That's open Ai.

Speaker 3 (01:03:14):
Cad GPT people, right, I forget what the.

Speaker 7 (01:03:16):
Google one is called.

Speaker 4 (01:03:17):
It's well, it's technically deep mind that makes it.

Speaker 7 (01:03:21):
But no, but the ractual system Gemini, that's what it was.

Speaker 3 (01:03:24):
But there's an open ai, the company behind chrad GPTs.

Speaker 4 (01:03:27):
Yes, yes, open Ai was valued at five hundred billion
dollars this week. And you think about that, right, five
hundred million dollars. How much is Apple worth? How much
is amaz I'm worth? Open Ai should be worth just
as much as that.

Speaker 3 (01:03:38):
So that company is worth what Elon Musk is worth. Yeah,
oh my god, yeah, five hundred billion, five hundred billion
net worth.

Speaker 9 (01:03:44):
Larry took over for about a week.

Speaker 3 (01:03:46):
Yeah yeah, Larry Allison is one hundred billion behind him.

Speaker 8 (01:03:50):
You're thinking that like after the fourth quarter, that's gonna
drop because there's no way the EV's my belief, at
least EV sales are going to go up in this
fourth quarter.

Speaker 3 (01:03:59):
No, no, no, no no.

Speaker 4 (01:04:01):
I'd already started a job, right, Oh.

Speaker 3 (01:04:03):
The only question is how much they drop? And like
I said, the Ford CEOs is fifty percent, I don't
know that it goes that far because there are a
lot of people buying these evs that don't qualify for
the tax credit. Obviously obviously a tax credit, but it's still.

Speaker 8 (01:04:17):
Like you said, they were focused on buying it before
so they could get the tax credit. This is that's
not going to happen in the fourth quarter.

Speaker 3 (01:04:23):
I don't know. I don't know how long people are
willing to patiently wait for Tesla to become the robot
leader that they think is going to become.

Speaker 8 (01:04:31):
Well, if you're full on investing in the company, they'll
wait five ten years. Because you're thinking long term investment.
You're thinking Tesla will become the robotics company of the.

Speaker 9 (01:04:41):
World of the future. So you are willing to wait
five ten years for that to happen.

Speaker 8 (01:04:45):
Yeah, I mean people invested in Tesla in twenty ten,
they don't really do anything until the last few years. Good,
But if you're trying to trade it, it's dig it's crazy.

Speaker 3 (01:04:57):
We did see interest rates come down this past week
when the FED cut rates. Right before the FED cut rates,
the ten year treasury was just under four percent and
since they cut rates, it's been round four and a quarter.
It actually dipped down to four point one two. Mortgage
rate didn't move stage right at six point three five,

(01:05:17):
so we're not seeing any huge drop in in that.
The cannabis stocks got quite a jump during the week
after Trump posted a video on social truth social touting
the benefits of cannabis for seniors. Kind of irrelevant unless
he can make it legal on the federal level, and

(01:05:39):
I don't know that that. Can he do an executive
Trump's very persuasive, right, can he find If he can
find a way to get cannabis legalized on a federal level,
those stocks are going to explode.

Speaker 4 (01:05:52):
Doesn't it seem like it's just an FDA thing. I'm
not FDA, a Food Drug and Administration. Well, yeah, so
my wife he control of that.

Speaker 3 (01:06:01):
I think it's Congress. Congress would have to legalize it
because it's illegal. Yeah, so the FDA can't make something
illegal legal.

Speaker 8 (01:06:08):
How did they like they would regulate the But.

Speaker 4 (01:06:11):
When they made alcoholic that was an amendment? Was that
how they did that?

Speaker 3 (01:06:15):
Yeah? The constitution?

Speaker 4 (01:06:18):
Actually, so did they have amendment that made weed illegal?

Speaker 1 (01:06:22):
No?

Speaker 3 (01:06:22):
But they there's a law a federal law that marijuana
is illegal, so they would need to Uh.

Speaker 4 (01:06:29):
See, that's what because when I read the history books,
when alcohol was illegal, weed was legal. And then when
alcohol became legal again.

Speaker 3 (01:06:38):
They made co Cola just have cocaine. And you know
I was born too late, right, The Roaring twenties probably
were fun anyway, Hey, the caunter flipped October, and what
do we start thinking about in October? Required minimum distributions? Right? Huh?
What are a reminder? If you're seventy three or older

(01:07:01):
anytime this year? You could turn seventy three on twelve
thirty one of twenty five still counts. If you're seventy
three any day this year, you are required to start
taking money from your retirement accounts. And that doesn't whether
the IRA is at a bank, a brokerage firm, an
insurance company. And it doesn't matter whether it's an IRA,

(01:07:24):
it doesn't matter what it's a sep IRA, doesn't matter
whether it's a simple IRA. There's one exception, if you
have a four h one K that's still active. In
other words, you're still working, and a lot of more
people are working over seventy three now. If you're over
seventy three have a four oh one K, you're still
contributing to the four to one K. You do not

(01:07:44):
need to take a requirementium distribution from that four to
one K. I found this out for the first time,
probably about five years ago, when I ran into this
pharmacist working in Green Valley, eighty five years old. Eighty
five year old pharmacist working full time, and I said,
by the way, have you taken any money from your
four oh one K? He goes no. I said, well,

(01:08:05):
you're required to take distribution. He goes no, you're not.
So I talked to a couple of tax people and
go a little and sure enough, you don't have to
as long as you're working, and it doesn't matter how
old you are.

Speaker 8 (01:08:16):
There's another thing too, is if you turn seventy three
this year and you forget to take it by twelve
thirty one, you get a break because you can take
it all the way up until April first of twenty
twenty six. But if you do take it, say February
of twenty six, you will have to take another one
next year as well, so you'll end up taking two
in one year. But you're not going to get penalized

(01:08:36):
for not taking it during your first year of seventy three.

Speaker 3 (01:08:38):
Now, I have a doctor client who turns seventy three
this year. She is going to retire on twelve thirty
one of this year. She's gonna wait until January to
take her twenty twenty five because it doesn't matter that
she has two distributions. Next year she won't have her salary. Yeah,
and that makes all the sense in the world, marsher.

Speaker 4 (01:09:00):
Yeah, a taxable income picture. And that's what comes back
to the financial plan. In order to know what's the
best efficient thing from maybe retiring or selling a business
or even wroth conversions, you have to have a plan
of saying does income fall off a cliff, does it not?
How's this going to impact healthcare premiums? All that can
be done with the financial plan. Were just doing a

(01:09:22):
couple this week. We had our seminar last week. We
have a lot more planned for the week following. So
make sure you give us a call and take advantage
of especially when we're at all time hides. You can
revisit your risk tolerance, make sure you have a sound
financial plan. Update your financial plan. It probably is much
better as the accounts grow, the success rate usually grows
as well, so you can come in see if you're
able to spend more if you stay at the current level,

(01:09:44):
if your success rate has now increased, you can sleep
more comfortably at nights. We can always rerun the plan.
We can also do your free financial plan. If you
haven't ever done one, just give us a call five
to two oh five four four four nine zero nine.

Speaker 3 (01:09:55):
I have ah And these are not just cookie cutter
financial plans. There's some very very sophisticated strategies that I
hear you guys talking about. I have a friend that
I Haike Tuma mauk with who has a mid seven
figure net worth and does it all himself, very comfortable.
He knows how to cut his own hair so he
doesn't need a barber right and came in did the

(01:10:16):
financial plan. There were some things todd that you discovered
that told and told him about. He goes, wow, I
had no idea. So it doesn't matter your level of sophistication.
It doesn't matter whether you do it with Fidelity or Vanguard.
It doesn't matter how long you've been doing it, how
old you are. There are a lot of strategies I

(01:10:37):
learned things from the young guys in this office every week.

Speaker 4 (01:10:41):
Versus well, I mean, you know, funny today I had
a financial plan with an all state It used to
be an all state agent, you know, and that had
series six, had to understand had great Roth account. You
knew it all you know to be dangerous, but still,
you know, wanted to see the financial plan make sure
does rocket version makes sense? Already? Kind of did your
own social security optimism herself? Well, also wanted to see,

(01:11:02):
you know what does the plan say? It was able
to take away some few things that she was didn't
think about herself. So, like you said, on my level sophistication,
even getting a second eyes on it. That's why we
bounce the ideas off each other, because more perspectives are
better than just one.

Speaker 3 (01:11:16):
Yeah, and again, you will benefit from this no matter
who you are, no matter how long you've been doing it,
no matter how sophisticated you are, no matter your financial situation.
I can comfortably say that you will get some benefit
from spending an hour with these guys, just an hour
of your time total in your life. Give us a

(01:11:38):
call five two oh five four four four nine know nine,
Come in for your free financial plan if you haven't
done it already, you need to do it, and you
need to do it now. We'll be back right after
this break.

Speaker 4 (01:11:48):
Welcome back to the Money Matter Show. My name is Toddlick.
I'm here with Dylan Greenberg, Sebastian Boorsini, and Dave Surewood.
This week we had the rates actually moved down a
little bit that thirty year Freddy mag mortgage REI I
saw six point three percent. That means good bar where
should probably get down to six percent, maybe even the
high five.

Speaker 3 (01:12:06):
So, yeah, it depends you say good barrow's out. It's
credit and it's amount of down payment.

Speaker 4 (01:12:09):
Right, right, there's two things that dictate that for sure.
Also now income, right, it's not even just credit. If
you have a lot of income coming in the door,
they're really friendly to you. Right, So it's probably a
three pronged approach now, But it's so hard to qualify.
That's why there's such a housing crisis. It's not just
credit anymore, right, I mean these people, if you're you're

(01:12:32):
self employed, you have to have three years worth of
income to even qualify. If you're a W two you
get a little better of a break, but still the
W two the loan to value at these certain valuations.
Just you got to be making more, right.

Speaker 3 (01:12:44):
I spent nine years as a real estate lender before
I started into this business, and we always had a
entra there and that wash. If someone needs the money,
don't give it to them. You know, you want to
give it to people that did not necessarily need you know,
they got high income. Big down. I'd like to have
a mortgage, you know, if you really need the loan.
It's really not that we're looking for.

Speaker 4 (01:13:06):
Yeah, but I just think again, the reason we have
this housing crisis is because people can't qualify with the
loan to value. That LTV that was really put at
a stringent mark after two thousand and eight for good reason,
has made it very difficult on people because inflation makes
these home prices just unattainable.

Speaker 3 (01:13:22):
Well, if we hadn't misbehaved the last time where we
were left alone, we wouldn't need a babysitter, right.

Speaker 4 (01:13:27):
Well, it was the It was the bankers that were
supposed to make sure we didn't be misbehaving themselves.

Speaker 3 (01:13:32):
Actually, Wall Street trying to satisfy investor greed.

Speaker 4 (01:13:37):
Well, you're buying cmos, you're buying crap and saying it's good.
And that was the problem. And the crap that was
made into those bond in the first place were issued
by bankers, and this should have never been approved in
the first place. This loan should have never been issued.

Speaker 3 (01:13:49):
Right. But it's just a sationable, satiable appetite for mortgage securities.
It doesn't mean you walked the Wall Street could not
satisfy that appetite. Right. I'm going to talk a little bit.
In the first segment first hour, I talked about my
AI story. I want to say it again because some
people listen to the first hour, some to the second hour.
A lot of people don't. We talk about AI a lot.

(01:14:12):
We think about AI, we worry about AI. We think
about the good things that'll do, the bad things that'll do.
And I had a real life example last week that
I want to share with you. A client who has
a son who had a horrific car accident thirty three
years ago that left him a quadriplegic. He's currently in
TMC in intensive care fighting life threatening problems that frankly

(01:14:34):
are associated with someone who's been a quadriplegic for thirty
three years. TMC is a great hospital I've had two
open heart surgeries there. I've had all kinds of wonderful things, wonderful,
I had all kinds of good results. Yeah, how's that, Dylan,
I've got all kinds of good results there. So I'm
a big fan of TMC, regardless of what you think
about him. But the hospital staff, they don't run into

(01:14:59):
a lot of quadriplegics who have been quadriplegic for thirty
three years because frankly, they don't live that long typically.
So this young man, young wife's not young anymore. This son,
our client's son was in the intensive care fighting for
his life, and every day he would come in and
he would type his son's vital signs into his chat

(01:15:19):
GPT and they would tell him how his son's doing.
If the hospital would present him with a new medication,
he would look at the dosage, he would look at
the type of medication. He would put it in the
chat GPT and it would tell him what is used
for what the typical dosation. It was very helpful. At
one point, his son had a bowel obstruction, and bowel instructions,

(01:15:40):
of course, can be life threatening if they're not treated,
and treatment a I can't remember what treatment A was,
you know, actutive who knows what what treatment A was.
But then the hospital went straight to cost to me
as plan B. Well, cost to me is essentially you
are stuck with the bag and you uh go into

(01:16:02):
the you vacate into the bag, and then the bag
has to be empty and you're stuck with that for
the rest of your life. Our client went to chat
GPT and he told put in the circumstances and chat
GPT says, plan A is whatever the hospital did use
was correct. Plan B is and Plan C was the colostomy. Colostomy,

(01:16:24):
sorry about that. So that was planned C, not Plan B,
per chat GPT. So he went to the hospital staff
and he said, try this. This is plan B. They
tried it. It worked. A son did not have a
cost to me does not have to walk around the
bag for the rest of his life. I said to him,
I said, so chat GPT in your mind, chat GPT
saved your son's life. And he said, it's absolutely not

(01:16:46):
about it. He said, anyone that has a family member
that's undergoing medical issues, if you don't use chat GPT,
you're not using all the resources available to you.

Speaker 4 (01:17:00):
AI has another crazy capability that really started this whole
thing with the deep mind of Google. That team is
a very smart team. They beat the best go player
in the world a very complex chess like game, and
they did something else with that same algorithm, and they
were able to fold a protein. And folding proteins was
an ancient, long scientific problem that nobody was able to solve,

(01:17:23):
and this algorithm was able to do it, and that
the creator of algorithm won the Nobel Peace Prize whatever
the scientific prize is right, because it's such a breakthrough,
and I just saw this week that there's new capabilities
with those protein folding synthesizers, and the level of new
medicine that can be made, the new simulations that can

(01:17:45):
actually be modeled, the new breakthroughs in healthcare because of
AI is vastly under imagined. Because it's very hard to
even comprehend it. There's going to be a lot longer
life expect can see that most people realize, because there's
drugs that we've never even heard of. Even the smartest

(01:18:05):
scientists don't even know how to create right now, because
like you said, the greatest ideas will probably come from
AI himself telling humans to try it and then that
try leads to a.

Speaker 3 (01:18:14):
Breakthrough I have every I think medicine probably will be
the big winner in AI, above almost anything.

Speaker 4 (01:18:21):
I think potentially also energy though you know, energy has
just as well a level of impact on society as
healthcare because energy feeds into healthcare, right, and if we
could solve a nuclear fission like problem with AI, I mean, boom,
we got We're off to the races. Yeah, so there's
I think, if not healthcare, energy, for me, those are

(01:18:42):
the definitely top two.

Speaker 3 (01:18:44):
I think the point of this is there's an awfully
a lot of positive things that can come out of
this along with some negative thing that there's not a
week goes by that my wife doesn't send me something
off of the Internet that she saw that is just shocking. Well,
you want one of the night I get that's just shocking,
and I always go to Chad GPC and find out, no,

(01:19:06):
it's not true.

Speaker 4 (01:19:08):
Oh, I'll tell you one of the shocking crazy things
that AI can do. There's this company. I read this
article that this girl realized that her ex husband had
forty people that she knew, including herself, of fake generated
pornography by AI with her face and her friend's faces
on it, and there's Chinese based AI companies that don't

(01:19:29):
care about regulations that'll allow you to do this, and
it's a very under understood area. Just like in any technology,
there's good and there's a lot of bad, and a
lot of people don't like to talk about the bad.
But the AI level of stuff that they can do
with bad things like pornography is very scary. You can
make at this point, very realistic videos that you will

(01:19:53):
not be able to tell whether they're real or not.
And so for those bad actors in the world, that's
what's scary, right, the fake generation, the scams that can
be created. There's a lot of scary things along that line.

Speaker 3 (01:20:07):
No question, and I think having some software to police
Dad is going to be important. Jalen talked about that
in the first segment.

Speaker 4 (01:20:13):
I just realized this too about the article. This was
a very interesting point that the lady said, there's no
law that says that he broke any law by doing that,
because he didn't disseminate it, he didn't like spread it.
So the laws aren't made for this, right, the regulators
are behind You need a law that says you're not
allowed to do that, But there's really nothing says that

(01:20:35):
you can't. Right, the photoshop isn't a crime, right, that's
kind of what it is right now, until you say
you can't use someone's likeness on your own computer. Right now,
you know you can't disseminate someone's on likeness without their approval.
But what if you don't disseminate it? Is that even
breaking a law? And that's what she said. They're trying
to bring it to law, but they can't. There's no
law they broke. So AI is so far advanced beyond

(01:20:56):
even the judicial system, and regulators are so far behind
and AI still advancing. So it's just that gap is
going to expand more and more and more and we're
not going to have the laws we're really going to need.

Speaker 3 (01:21:07):
Well, they were think an awfully a lot of Warren
Buffett and his investment expertise, and we talk about his
performance over a long period of time has been as
good as anyone ever in history. And then we look
at Occidental Petroleum and we scratch our head. Warren has
been a long time holder of Occidental Petroleum, even though

(01:21:30):
the stock is thirty five percent below where it was
ten years ago. On Thursday, he has company Berkshire Hathaway
announced it was buying the petrochemical division for ten billion
dollars in cash, and the stock responded by dropping another
four percent. So it's forty percent below where it was

(01:21:50):
ten years ago. And Warren just keeps buying now. In
fairness to him, it's not one of his top five holdings,
but they've got a pretty good stake in Occidental Petroleum.

Speaker 9 (01:22:00):
Wonder why he keeps buying it though.

Speaker 3 (01:22:02):
And again, for years we've been wondering, Dylan. Yeah, and
for years it has done nothing well.

Speaker 8 (01:22:07):
It seems like they're just going more and more into
They might eventually try and buy it all, but just
keep going more and more into.

Speaker 3 (01:22:12):
It, even if they don't anybody cares.

Speaker 8 (01:22:14):
That's what I'm saying. I don't really, I don't understand it.
But or they sell it for a loss at one point,
and maybe you like to give it.

Speaker 3 (01:22:22):
I'm not even sure what the dibod end is on three. Yeah,
it's not gonna be a big dividend. A little a
little shout out to a Sebastian I'm Alwaist picking on him.
Uh Celsius holding the energy drink makers more than doubled
this year, and and the reason for that is because
they bought that Alta New and he and when they
did that, Alani knew. When they bought that Alani New

(01:22:45):
power drink, Sebastian said, this is a game changer, and
we all kind of rolled our eyes and whatever. Uh,
it's been amazing. What's happened to that stock? Morgan Stanley
finally cided that now it's time to buy the stock
they raised. Yeah, they it's doubled. They raised it from
a whole to a buy. Uh. So they sat out

(01:23:06):
the first hundred percent and now they're going to get
in there and and load up on it at the
investment banks. At Celsius is revenue is due to accelerate
more than the street expects. And that stock was dropping
like a rock until they bought that Alani New and
I remember Sebastian saying, this is the big deal, and
we all kind of rolled our eyes. Yeah, whatever, Speccion,

(01:23:28):
go back to whatever you're doing.

Speaker 4 (01:23:30):
That's what you said.

Speaker 9 (01:23:31):
Yeah, occidentals dividend yield is.

Speaker 3 (01:23:40):
Have a good dividend war. What do you know? No
one did well? Because they're about to Trump's about to
back off on the g L p one stuff. Right. Uh,
it's uh he seems to anyway, that's what it was about. Uh. Anyway,
we'll be back after this break. We'll talk more about
the next SECD because I got a little stuff on it.

(01:24:02):
We'll be back. Thanks again for listening to us.

Speaker 4 (01:24:05):
Welcome back to the Money Matter Show. My name is
Todd Lick. I'm here with Dylan Greenberg, Sebastian Boorsini, and
Dave sure Would. This week we have the rates that
actually moved down a little bit. The thirty year Freddy
mag mortgage rey I saw is now at six point
three percent. That means good bar where you could probably
get down to six percent, maybe even the high five.

Speaker 3 (01:24:23):
So yeah, the dependents you say, goodbarrow, we're it's credit and.

Speaker 4 (01:24:26):
Down payment r right, there's two things that dictate that
for sure. Also now income, right, it's not even just credit.
If you have a lot of income coming in the door,
they're really friendly to you, right, So it's probably a
three pronged approach now, but it's so hard to qualify.
That's why there's such a housing crisis. It's not just
credit anymore, right, I mean these people, if you're you're

(01:24:49):
self employed, you have to have three years worth of
income to even qualify. If you're a W two, you
get a little better of a break, but still the
W two, the loan to value at these certain valuations
just you gotta be it more.

Speaker 3 (01:25:00):
I spent nine years as a real estate lender before
I started into this business, and we always had a
maentra there, and that was, if someone needs the money,
don't give it to them. You know, you want to
give it to people that did not necessarily need it.
You know, they got high income, big down payment. I'd
like to have a mortgage, you know, if you really
need the loan. It's really not that we're looking for.

Speaker 4 (01:25:23):
Yeah, but I just think again, the reason we have
this housing crisis is because people can't qualify with the
loan to value. That LTV that was really put at
a string at mark after two thousand and eight for
good reason, has made it very difficult on people because
inflation makes these home prices just unattainable.

Speaker 3 (01:25:40):
Well, if we hadn't misbehaved the last time where we're
left alone, we wouldn't need a babysitter, right, Well.

Speaker 4 (01:25:44):
It was the it was the bakers that were supposed
to make sure we didn't be misbehaving themselves.

Speaker 3 (01:25:49):
Actually, Wall Street to trying to satisfy investor greed.

Speaker 4 (01:25:54):
Well, you're buying cmos, you're buying crap and saying it's good.
And that was the problem. And the crap that was
made into those bond in the first place were issued
by bankers, and this should have never been approved in
the first place. Loan should have never been issued.

Speaker 3 (01:26:06):
Right, So it's just a sationable, satiable appetite for mortgage securities.
Doesn't mean Waree Wall Street could not satisfy that appetite. Right.
I'm going to talk a little bit. In the first
segment first hour, I talked about my AI story. I
want to say it again because some people listen to
the first hour, some to the second hour. A lot
of people don't. We talk about AI a lot. We

(01:26:29):
think about AI, we worry about AI. We think about
the good things that'll do, the bad things that'll do.
And I had a real life example last week that
I want to share with you. A client who has
a son who had a horrific car accident thirty three
years ago that left him a quadriplegic. He's currently in
TMC in intensive care, fighting life threatening problems that frankly,

(01:26:51):
are associated with someone who's been a quadriplegic for thirty
three years. TMC is a great hospital. I've had two
open heart surgeries, I've had all kinds of wonderful things, wonderful.
I've had all kinds of good results. How's that, dyling,
I've had all kinds of good results there. So I'm
a big fan of TMC, regardless of what you think
about him. But the hospital staff, they don't run into

(01:27:16):
a lot of quadriplegics who have been quadriplegic for thirty
three years because, frankly, they don't live that long typically.
So this young man young will he's not young anymore.
This son, our client's son was in the intensive care
fighting for his life, and every day he would come
in and he would type his son's vital signs into
his chat GPT and they would tell him how his

(01:27:39):
son's doing. If the hospital would present him with a
new medication, he would look at the dosage, he would
look at the type of medication. He would put it
in the chat GPT and it would tell him what
is used for what the typical dosation. It was very helpful.
At one point his son had a bowel obstruction and
battle instructions of course can be life threatening if they're

(01:27:59):
not treating and treatment A. I can't remember what treatment
A was, you know, actutive who knows what what treatment
A was. But then the hospital went straight to cost
toys as plan B. Well, cost to me is essentially
you are stuck with the bag and you uh go

(01:28:19):
into the you vacate into the bag, and then the
bag has to be empty and you're stuck with that
for the rest of your life. Our client went to
chat GPT and he told put in the circumstances and
chat GPT says, plan A is. Whatever the hospital did
use was correct. Plan B is and Plan C was
the call colostomy colostomy. Sorry about that. So that was

(01:28:43):
planned C, not Plan B, per chat GPT. So he
went to the hospital staff and he said, try this.
This is plan B. They tried it.

Speaker 4 (01:28:50):
It worked.

Speaker 3 (01:28:51):
The son did not have a cost to me, does
not have to walk around the bag for the rest
of his life. I said to him, I said, so
chat GPT in your mind, chat GPT shaped your son's life,
And he said, I absolutely thought about it. He said,
anyone that has a family member that's undergoing medical issues.
If you don't use chat GPT, you're not using all

(01:29:15):
the resources available to you.

Speaker 4 (01:29:17):
AI has another crazy capability that really started this whole
thing with the deep mind of Google. That team is
a very smart team. They beat the best go player
in the world a very complex chess like game, and
they did something else with that same algorithm, and they
were able to fold a protein. And folding proteins was
an ancient, long scientific problem that nobody was able to solve,

(01:29:40):
and this algorithm was able to do it, and that
the creator of algorithm won the Nobel Peace Prize whatever
the scientific prize is right because it's such a breakthrough.
And I just saw this week that there's new capabilities
with those protein folding synthesizers and the level of new
medicine and that can be made, the new simulations that

(01:30:02):
can actually be modeled, the new breakthroughs in healthcare because
of AI is vastly under it imagined, because it's very
hard to even comprehend it. There's going to be a
lot longer life expectancy than most people realize because there's
drugs that we've never even heard of. Even the smartest

(01:30:22):
scientists don't even know how to create right now, because
like you said, the greatest ideas will probably come from
AI himself telling humans to try it, and then that
try leads to a breakthrough.

Speaker 3 (01:30:32):
I have every I think medicine probably will be the
big winner in AI, above almost anything.

Speaker 4 (01:30:38):
I think potentially also energy, though you know energy has
just as well a level of impact on society. It's
healthcare because energy feeds into healthcare, right, and if we
could solve a nuclear fission like problem with AI, I mean, boom,
we got, We're off to the races. Yeah, so there's
I think, if not health care, energy, for me, those

(01:30:59):
are the definitely top two.

Speaker 3 (01:31:01):
I think the point of this is there's an awfully
a lot of positive things that can come out of
this along with some negative thing that there's not a
week goes by that my wife doesn't send me something
off of the internet that she saw that he is
just shocking. Well, you want one of the night I
get that's just shocking, and I always go to chat

(01:31:22):
GPC and find out, no, it's not true.

Speaker 4 (01:31:25):
Oh, I'll tell you one of the shocking crazy things
that AI can do. There's this company. I've read this
article that this girl realized that her ex husband had
forty people that she knew, including herself, of fake generated
pornography by AI with her face and her friend's faces
on it. And there's Chinese based AI companies that don't

(01:31:46):
care about regulations that'll allow you to do this, and
it's a very under understood area. Just like in any technology,
there's good and there's a lot of bad, and a
lot of people don't like to talk about the bad.
But the AI level of stuff that that can do
with bad things like pornography is very scary. You can
make at this point, very realistic videos that you will

(01:32:10):
not be able to tell whether they're real or not.
And so for those bad actors in the world, that's
what's scary, right, the fake generation, the scams that can
be created. There's a lot of scary things along that line.

Speaker 3 (01:32:24):
No question, and I think having some software to police
Dad is going to be important. Jal And talked about
that in the first segment.

Speaker 4 (01:32:31):
I just realized this too about the article. This was
a very interesting point that the lady said, there's no
law that says that he broke any law by doing
that because he didn't disseminate it. He didn't like spread it.
So the laws aren't made for this, right, the regulators
are behind. You need a law that says you're not
allowed to do that, but there's really nothing says that

(01:32:52):
you can't, right, like the photoshop isn't a crime, right,
that's kind of what it is right now, until you
say you can't use someone's likeness on your own. Right now,
you know you can't disseminate someone's on likeness without the approval,
But what if you don't disseminate it? Is that even
breaking a law? And that's what she said. They're trying
to bring it to law, but they can't. There's no
law they broke. So AI is so far advanced beyond

(01:33:13):
even the judicial system, and regulators are so far behind,
and AI is still advancing. So it's just that gap is
going to expand more and more and more, and we're
not going to have the laws we're really going to need.

Speaker 3 (01:33:25):
Well, they were think an awfully a lot of Warren
Buffett and his investment to expertise, and we talk about
his performance over a long period of time has been
as good as anyone ever in history. And then we
look at Occidental Petroleum and we scratch our head. Warren
has been a long time holder of Occidental Petroleum, even

(01:33:47):
though the stock is thirty five percent below where it
was ten years ago. On Thursday, he has company Berkshire
Hathaway announced it was buying the petrochemical division for ten
billion dollars in cash, and the stock responded by dropping
another four percent. So it's forty percent below where it

(01:34:07):
was ten years ago, and Warren just keeps buying now.
In fairness to him, it's not one of his top
five holdings, but they've got a pretty good stake in
Occidental Petroleum.

Speaker 9 (01:34:16):
It makes you wonder why he keeps buying it though.

Speaker 3 (01:34:19):
And again for years we've been wondering, Dylan. Yeah, and
for years it has done nothing well.

Speaker 8 (01:34:24):
It seems like they're just going more and more into
They might eventually try and buy it all, but just
keep going more and more into.

Speaker 3 (01:34:29):
It, even if they do. Anybody care, That's.

Speaker 8 (01:34:31):
What I'm saying. I don't really, I don't understand it.
But or they sell it for a loss at one point,
maybe you like to give it then.

Speaker 3 (01:34:39):
I'm not even sure what the dividend is on three three. Yeah,
it's not gonna be a big dividend. A little little
shout out to a Sebastian, I'm alwaist picking on him.
Celsius Holdings, the energy drink maker, is more than doubled
this year, and the reason for that is because they
bought that a lot a New and he and when
they did that, Alani knew. When they bought that Alani

(01:35:02):
New power drink, Sebastian said, this is a game changer,
and we all kind of rolled our eyes and whatever. Uh,
it's been amazing what's happened to that stock. Morgan Stanley
finally cited that that's now it's time to buy the
stock they raised. Yeah, they RAI it's doubled. They raised
it from a hole to a buy. Uh. So they

(01:35:22):
sat out their first hundred percent and now they're going
to get in there and and load up on it.
At the investment Bank said Celsius is revenue is due
to accelerate more than the street expects, and that stock
was dropping like a rock until they bought that Elani
New and I remember Sebastian saying this is the big deal,
and we all kind of rolled our eyes. Yeah, whatever, spashion,

(01:35:45):
go back to whatever.

Speaker 4 (01:35:46):
You're doingccidentals, that's what you said.

Speaker 9 (01:35:48):
Yeah, occidentals dividend yield is two.

Speaker 3 (01:35:57):
Doesn't have a good dividend.

Speaker 9 (01:35:59):
I don't know more.

Speaker 3 (01:36:00):
What do you know, No, no one did well because
they're about to Trump's about to back off on the
g l P one stuff. Right. Uh, it's a he
seems anyway where That's what it was about.

Speaker 4 (01:36:14):
Uh.

Speaker 3 (01:36:14):
Anyway, we'll be back after this break. We'll talk more
about the next segment because I got a little stuff
on it. We'll be back. Thanks again for listening to us.

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