June 6, 2025 • 45 mins
Wide-spread Tariffs and the Big Beautiful Bill are driving the US Business markets. A two-headed monster. Hosts John and Giuseppe are watching Capitol Hill and for international deals, and what it means for your portfolio in retirement. Plus, AI and Core Technologies, Options, and Energy Stocks. The Wise Money Guys.
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Episode Transcript
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Speaker 1 (00:00):
The Wise Money Guys Radio Show is brought to you
by One Source of Wealth Management SEC licensed three one
nine zero seven eight. For disclosures and more information, visit
our website One Source WM dot com.
Speaker 2 (00:14):
Welcome to the Wise Money Guys radio Show. I'm your
co host John Scameran, and here with my partner extraordinaire
just up to Viscontin, and we are certified portfolio managers
that specialize in helping people who are retired or about
to retire manage their money and as investment experts. One
of the things that we pride ourselves on is trying
(00:35):
to help people de risk their portfolios. In light of
some of the stuff we'll talk about today, like this
Teriff decision from now another rogue judge.
Speaker 3 (00:50):
Nvidia Earth and federal courts blocking yep Trump yep right.
Speaker 2 (00:55):
And then the Nvidia earnings which didn't surprise me at all,
and other things that are relevant to the stock market
and the economy and investments. But before we do that, uh,
you can find more information about us on Wysemoneyguys dot
com and you can also watch us, by the way,
(01:16):
on our YouTube channel, which we were talking about this morning,
and that's also Wise Money guys. You can just search
Wise Money Guys and you'll find us on YouTube. But
more importantly, if you want to see us in person.
We are having our Roseville Workshop for people who are
again retired or about to retire.
Speaker 4 (01:38):
Conquered. Did I say Roseville?
Speaker 2 (01:41):
Yeah, you're right, we did.
Speaker 3 (01:43):
We had our Rooseville. We're coming back to Conquered. We
hadn't been there before. We had our first one earlier
this year, and now we're going to be doing our
second one in Conquered because it went well, but there
was a lot of bad weather, so we're now trying
for some good weather. Yeah, come junior.
Speaker 2 (01:58):
Fourth it was literally what do they call it, an
atmospheric river today of the workshop. But again, if you're
retired or about to retire and you're just watching your
investment portfolio, that's who should attend, by the way, someone
(02:18):
who has an investment portfolio. It's a meaningful part of
your legacy, your net worth, your livelihood. If you don't
have investments, or aren't concerned about investments, then this workshop
isn't for you. But we're going to show you live
how we have addressed and handled volatility, how we have
(02:44):
created and enhanced income streams for our clients, but more importantly,
how we have de risked many of our clients' portfolios
that don't want to be or have the risk or
be more aggress have like they had been in the
past prior to retirement. So it's it's crucial that you attend.
(03:08):
If any of those concerns or or things that we
just said sound like you, you'll want to call nine
one six nine six seven thirty five hundred to register
for our conquered workshop not Roseville at the old Spaghetti
Factory again called nine one six nine six seven thirty
(03:30):
five hundred. So did you see the news the first
thing this morning? So I obviously start watching the news,
you know, six am, sometimes five thirty am, because I
want to see what the fu.
Speaker 4 (03:42):
Is that, what's good is that, what goes on?
Speaker 3 (03:43):
Because sometimes you come in all amped up, sometimes you
come in a little somber. So I just have to
kind of get the gauge of what the news is
saying that morning, and then.
Speaker 4 (03:53):
Yeah, and then I can figure out what'll do.
Speaker 2 (03:54):
For the mornger we are and it's driving me crazy
that we're allowing and I don't and I don't understand
what Republicans are doing. The fact that Republicans who control
Congress can control that, which is the House in the
Senate have not passed laws that say that if you're
(04:14):
a district judge, you cannot rule on things outside of
your district. And more importantly, you can't from an activism perspective,
change laws that have been passed by Congress. Only Congress
can do that.
Speaker 3 (04:32):
So the fact you're talking about the blocking of the
reciprocal terrorists.
Speaker 2 (04:36):
Yeah, So the first thing I do is I wake
up this morning again, it was about five point thirty.
I started watching the news and reading, you know, some
of the research things that we follow, and and sure
enough I see the headline, you know, US judge blocks
Trump tariffs. How you know it was the And we
(04:57):
actually looked up the acts, typical Trade Agreements Act of
thirty four and then the Trade Expansion Act of sixty two.
Now we don't need to dive into the weeds of
those because we're not lawyers and obviously not congressional scholars.
But the president period has the authority to do what
(05:18):
he is doing. And who doesn't have the authority to
do what they're doing. Are these district judges. They have
zero authority. So what I don't understand. And then of
course you see the markets, you know, react positively or negatively.
Of course, what I don't understand is why the Trump
administration even follows why they don't just flat out ignore
(05:43):
these decisions from these activist judges that aren't following the
law whatsoever. I mean, they're literally just making up laws.
Speaker 3 (05:51):
Maybe they like the spike in the market, Well they
don't want to pour they want to pour cold water
on it quite yet.
Speaker 2 (05:57):
That that could be. Or maybe they've had Nancy Pelosi.
Speaker 3 (06:00):
It was it was on the back of you know,
great earnings from Nvidia, and then you had that come
out and the market spike, you know, the futures on
that day spiked, and so maybe they don't want to
pour cold water on it quite yet.
Speaker 4 (06:11):
Yeah.
Speaker 2 (06:12):
So, or my other thing is maybe they told, you know,
Nancy Pelosi, hey, we're gonna we're gonna make another you know,
ruling from the bench that you should you know, you
should short or or either short or go along certain
things based on our ruling. So, because how that woman
(06:33):
and her husband get away with you know, the billions
of dollars of assets.
Speaker 3 (06:38):
Well it should be and not only here, but I
think that should be blocked for all, you know, members
of the government that have the inside information of what's
going to be coming down the pike before the before
the public does, because that's just totally unfair. I mean,
if we did it in our business, we'd be done.
Oh yeah, period, I mean you find done, maybe even jailed. Right, Yeah,
(07:00):
you can't do insider trading, So why penaltic that essentially
is kind of like insider trading. No, it's one hundred
percent insider trading. I mean they're using legislation that they
know is coming or that they're trying or will pass
to make their investment decisions. Fact, that's one hundred percent
insider trading. So but again, all we can do is
(07:26):
help you know, our clients and help people that you
know are willing to listen on strategies that we have
implemented to always not always, but most of the time
find opportunities for increasing your income or reducing your risk
(07:49):
or increasing your growth potential of your portfolio, depending on
what your specific goals and objectives are. Yeah, I think
the common theme is is finding way when we get
clients' portfolios right, if they've already had an investment portfolio
out there existing through some other firm, or if they
did themselves and finding ways of taking some unnecessary risk
(08:12):
off the table to get in order to get them
to their goals. A lot of times people think they
need more growth or take more risk than they need
to right in order to obtain their goals. And then
once we go through and do an analysis, you know,
we find and show them and give them a different
perspective of, hey, this is how you can actually take
some unnecessary risk.
Speaker 4 (08:32):
Off the table.
Speaker 3 (08:34):
So when you have some uncertain times like what we're
going through and what we've been going through for quite
some time now and especially this year, is it wouldn't
it be better to get you from point to point
B without taking them out of risk?
Speaker 2 (08:47):
Right?
Speaker 3 (08:47):
If you're at a form a scale from one to ten,
and you're at like a seven or eight, and we're
able to dial it down to maybe a five and
still through planning and software and show you that you're
able to get from point A to point B still
and you don't have to be at a seven or eight.
You can be at a five from a one through ten,
ten being the highest risk and one being the lowest.
I mean, who doesn't want to.
Speaker 4 (09:08):
Take that right, Yeah, exactly.
Speaker 2 (09:10):
And one of the things that continues to blow me
away is the literal, you know, amount of dividends and
interest you can still find in investments right now in
the form of alternatives, structured notes, you know, value stocks
that have increased their dividends every year, sometimes for decades.
(09:33):
Interest rates in bonds are still very attractive because the
prices have come down recently. And so just from a
timing perspective, there's always a good time when you're working
with you know, money managers like Giuseppe and I to
find ways to improve upon the portfolio that you may
(09:56):
already have. And so we'll talk about more economic things,
but more importantly the things that we see that you
can do to you know, have a good strategy in
place for the rest of the year. You're listening to
the Wise Money Guys radio show. I'm your co host
John Scambray and I'm here with my partner, and we
(10:18):
did mention that we were going to talk about in
Nvidia and more importantly while that why in Nvidia earnings
are important because it goes against the grain of you know,
the narrative not the data, but the narrative that you know,
tariffs in and the economy and and everything that's being
(10:39):
done is negative, you know, from a from an inflation,
from a growth from from employment, so on and so forth.
And then here you have it in Vidia, who's probably
one of the biggest companies there is to be subject
to the China tariffs, and again it continues to make
(11:03):
record amounts of money. Because I don't think the world
or or certainly not mainstream news, has grasped how big
the artificial intelligence transformation uh really is. I mean, everything
in the future is going to be dominated by you know,
(11:28):
machines and systems and software and robots and things that
literally can replace my oh my can replace.
Speaker 4 (11:39):
Instead of lions, tigers and bears.
Speaker 2 (11:41):
Unfortunately every type of job that that humans now do
and so but obviously different. No, the liver. I mean
you already have machines that pick crops, machines that make
flip burgers, machines that fry French fry or.
Speaker 3 (12:01):
Carpenters, electricians, plumbers that that maybe at some point, maybe
at some point that could be further down.
Speaker 4 (12:08):
The versus versus that computer programmer.
Speaker 2 (12:10):
Which you think of one of the most important labor
type jobs there is is that of a surgeon. And
you definitely already have robotics, you know, they've already been
out for right, but it will improve way beyond what
the capable capability was years ago when it started to
where it could go now. But but I got on
(12:32):
that diet tribe about Nvidia, and so here we are
with Nvidia, and what were the numbers just at the.
Speaker 4 (12:38):
Sixty sells growth?
Speaker 3 (12:41):
They beat on EPs earnings per share and also revenue,
which is great. Initially the stock after hours because they
were reported after after the market closed and shot up.
Speaker 4 (12:54):
I think it was up like.
Speaker 3 (12:55):
Five over five percent after hours, and and if youtures
also were up a good amount, you know, like one
and a half to two percent, depending on the endsicy
that you tracked after.
Speaker 4 (13:08):
Hours as well. Because then.
Speaker 3 (13:12):
On top of Nvidia came this whole thing with a
federal court, you know, court rolling of blocking Trump and
the tariff.
Speaker 4 (13:19):
So market reacted to that as well.
Speaker 3 (13:21):
But then interestingly enough, the next day, right Thursday, markets
opened and gapped up. Gapped up just means that it's
started off at a higher level than the previous day,
and then it's and then it's trickling down primarily because
(13:41):
of uncertainty, like is this court rolling gonna gonna stay
in Vidia? Did you know as far as the negatives
and Vidia did have some negatives from its earnings call
I think like eight billion dollar hit based off of
the blocking of uh China buying those H two O chips.
Speaker 4 (14:02):
So you know, is it is it gonna shut down
in Vidia? No?
Speaker 2 (14:05):
No?
Speaker 4 (14:06):
Is it?
Speaker 3 (14:06):
Is it going to you know ruin? I think the
big thing with the AI thing is, you know, even
though how transformational and important it is, and how this
is kind of the next you know, it could be
the next like we went through the dot com and
the internet phase right now this is is this the
next like internet phase could be? But it's what what's
the true value of these companies? And I think what
(14:31):
what the market and investors are trying to figure out
is how much money needs to really be invested to
get the output needed for everything that's going on in
the AI world.
Speaker 4 (14:45):
Is it just enough? Is it too much? Right?
Speaker 3 (14:48):
And so Deep Seek, which came out earlier kind of
through a little bit of a wrench of it, is
that viable. I don't know, is there other companies out
there and competitors that might find ways that can that
that can do it cheaper, and then you know what
does that do for some of the AI the AI
darling really which is in video.
Speaker 2 (15:07):
But if you think about that, that's yes, I agree
with what you're saying, but that's not where in Vidia's
future of making money is or the future of AI
is the chatbots, you know, or our first exposure. But
it's really about the data and the data centers that
this AI revolution is creating, right because with machines being
(15:34):
able to you know, quantum compute, not supercomputer, now quantum compute.
So think of it like this. You know, these chips
were you know, when they went to super computer capability,
it was like going on a from a two lane
road to a freeway. Now quantum computer computing is basically
(15:57):
you know, take take a regular freeway that might be
three lanes in each direction, and now you have these freeways,
especially around you know, southern California Interstate five and four
oh five and ninety one, where they're eight ten lanes.
Speaker 4 (16:15):
Maybe that's not a good direction.
Speaker 3 (16:16):
Maybe it's not a good example because las big as
a freeway is nobody's going anywhere, right, well, now you're flying.
Speaker 4 (16:23):
You're flying in a plane at that point, you know,
but but.
Speaker 2 (16:26):
You look at if you're looking for the reason why
and video and in my opinion, now.
Speaker 3 (16:32):
May I understand what you're saying as far as what's happening.
Speaker 4 (16:37):
What I'm focusing on is just.
Speaker 3 (16:41):
The focus is on in video, like everything stops right
in video posted earnings. Asia markets opened first, okay, because
in video was posted earnings after hours.
Speaker 2 (16:53):
Yeah yeah, no, not yesterday on Wednesday.
Speaker 3 (16:56):
Wednesday, yeah, Wednesday after hours and video posted earnings. Right,
it was a beat, and then Asian markets opened up
and boom, Asian markets are up.
Speaker 4 (17:05):
It's like everybody.
Speaker 3 (17:06):
It's almost like when Jerome Powell and FMC, everything stops
and the whole focus.
Speaker 4 (17:12):
Is on one come.
Speaker 3 (17:13):
So my point is is they're spending billions and billions
and billions of dollars.
Speaker 4 (17:17):
And I threw the deep seek out there.
Speaker 3 (17:18):
You know, I don't know if that's viable, but I'm
just saying the competition out there is imagine and we
already saw. What happened is the Mac seven went down
almost forty percent. If you just combine all the Max seven.
Speaker 2 (17:29):
Oh right from peak to troughy from February nineteenth through
April eight through through April right when the whole tariff
thing was ramped up and hit its peak, right, and
we had Liberation Day, and so that went down almost
forty percent.
Speaker 3 (17:42):
Well that there was a lot of other stocks that
went down to but that really drugged down the S
and P five hundred NASDAC indices. And now here we
are and we have we've rebounded because of the delays, right,
the temporary ninety day delays with China and then the
rest of the country's around for these elevated tariffs, and
you see the max seven really ramp up more so
(18:03):
than just the indices itself. Yeah, So the having the
importance and the focus on Nvidia, and so my point
is is we don't quite know exactly as far as
quantifying the amount of money these companies are putting out
there that are so highlighted out here in Vidia and
Microsoft and Google, right who kind of the leaders out
here in the AI world two years from.
Speaker 4 (18:24):
Now will probably be a whole slew of other names
right there.
Speaker 2 (18:27):
Well, there is, and and they're just not as important
right now. To take it a step further, and again,
why this is important is because these this is the analysis,
this is the thought process that we go through before
putting a position in our client's portfolios. First from a
from a risk and and a and a comfort level.
(18:50):
It does does the investment that we risk versus reward
right match the person's goals and objectives. But but again
it's important because as the ways you're going to find
new growth opportunities to really what you're saying might not
necessarily be in an Nvidia. However, you know in Vidia
(19:12):
and the early things where they were spending billions on
to just be the first to say, oh, you know,
look at our chat bot or this that or that's
not where a company like in Vidia's future is they
I'll give you we're in the right. In Vidia's future
is in their GPUs and other companies buying their GPUs.
(19:35):
For example, core Weave, what a brilliant model. So core
Weave is buying you know, excuse me, not buying, borrowing
to buy in Nvidia GPUs. They're in Vidia's largest customer.
And then what they do with those GPUs is they
create a massive data center and then they rent out
(20:00):
the GPUs to other companies where they're borrowing at ten
percent but they're made to buy all the GPUs and
build the data centers, but then they're making twenty to
thirty percent, you know, on on and above what the
cost of the GPUs and the data center was to
put in place. And so the ways that money is
(20:25):
being made in artificial intelligence isn't just as simple as
you know, the chat bot or the AI chip. It's
more to me and where I see opportunities like in
this core weave, which I think could be a double
you know, because we're just scratching the surface.
Speaker 4 (20:43):
On the stata is from the lows Well it just opened.
Speaker 2 (20:47):
Well that's because it just went puttlight and it's it's
more than doubled from its IPO, but it's growing at
an astronomical rate. And that type of opportunity, like I said,
which is which is really the offshoot of what what
opportunities are out there from AI and AI.
Speaker 3 (21:09):
Chips kind of like so kind of like your point,
like Amazon, People look at Amazon and it's like shopping online,
but Amazon isn't just shopping online, not it's the cloud
right aws exactly sector of of Amazon, which is which
is very very profitable.
Speaker 2 (21:25):
And then you look at another company like core Scientific,
which is isn't a isn't a blockchain or or a cryptocurrency.
But they're making money off of cryptocurrencies because cryptocurrencies are
massive data dependent, energy dependent, you know companies, and so
(21:50):
outcomes of Core Scientific then you.
Speaker 3 (21:53):
Buil and then you boil down to some of the
companies that are going to provide the source of energy.
Speaker 2 (21:59):
But one of the biggies that we were discussing is
the power needs of the data that has created the
massive amounts of data that's not only created from from
computers that that now do machine learning, but from cryptocurrency
and other new technologies. I mean, oh yeah, crypto mining,
(22:22):
so on and so forth. But companies are now figuring
out how important you know, morphine their energy production into
production that's not just for cars, boats, houses, you know, uh, trainsmobiles.
For the way that AI is going to impact you know,
(22:45):
mankind and its future.
Speaker 3 (22:46):
So data centers, mining centers, for cryptocurrency. It just is
it going to be using a ton of energy.
Speaker 2 (22:52):
And some of these investments that have just been fantastic
is like ge Verona, core Weave, n video and many more.
Speaker 3 (23:01):
And so but as you were talking about just even
traditional like Phillips sixty six.
Speaker 4 (23:06):
Yeah, which you wouldn't even think of as a tie
to AI.
Speaker 3 (23:11):
Or cryptocurrency mining or anything. But you were saying that
they're now realizing.
Speaker 2 (23:16):
Exactly shifts and just recently and I don't know the
exact date, but the types of companies they're partnering with
because they realize that, hey, there's a massive market out
there that's untapped for a traditional company like US that
has access to oil and oil refinement to turn that
into different types of power versus just turning it into
(23:41):
gasoline or diesel as our main revenue source. And so
the point of all that is is this is what
you and I think about. This is the level of
analysis and research and we're just scratching on the surface
here on the show this morning that we dive into
(24:02):
to find, you know, opportunities for our clients to make money.
So if you're thinking, gee, I missed out on the Nvidia,
the Microsoft, the Amazon, this, that or the other, you
haven't missed out on anything. I mean, we just we
just started this AI thing. Really in the last twelve
months have really reaped exactly ways you make revenue from
(24:28):
the AI revolution. We don't even know all the ways.
Speaker 3 (24:31):
Yet still it's like getting into Apple computer, you know,
maybe in the late early even just Apple computer in
the early two thousands. Imagine that, yeah, right, because a
lot of the talk and everything was in the nineties,
in the late nineties. But even if you didn't get
in then and you got in the early two thousands, right,
(24:52):
I mean, look at how much exponentially things have changed
from the desktop Macintosh computer, right, and then and then
all the way to the smart computer.
Speaker 2 (25:04):
The basic language and learning how to you know program basic?
Speaker 4 (25:08):
I mean what a joke or doss.
Speaker 3 (25:10):
And then you had wind, you know, had you had
Microsoft Windows come out revolution, then you had Apple have
their own you know platform, right, and then you came
out with the first smartphone, which I think was in
two thousand and six, yes, right, the candy candy bar.
First smartphone just blew everything away.
Speaker 2 (25:30):
But here's the thing. If you're thinking that, gee, I
missed the boat and or hey, I'm too old to
have you know, some sort of growth opportunity in your
in my portfolio, you haven't, but you can't go it alone.
(25:51):
Is really what it boils down to. We've been just
talking about all kinds of different investments that that you know,
have a very bright future, but there's so many more
and working with somebody like Giuseppe and I to help
you manage your money and take advantage of this transformation
(26:11):
that's now fourth Industrial Revolution that we're now in is crucial.
So in order to see us live and to see
some of the things that we're doing to really help
our retired clients and our clients that are working towards retirement,
you know, come to our workshop in Conquered on Wednesday,
(26:34):
June fourth, from six to seven thirty pm. You absolutely
have to call now to register because we're going to
have to start typically in the last week, we have
to start turning people away because we get so many
registrations so called nine one six, nine six, seven, thirty
five hundred. You're not gonna want to miss this one
(26:57):
because again we're getting a little bit of a of
a break. As far as you know, we predicted a
stocks would rise up, we'd need a we'd need a
slight pullback in order to start a new leg up.
But at the same time, bonds have pulled back, and
when interest rate policy does change, uh, then you know
(27:21):
you're not going to have the same opportunity to get
the type of interest rates that are fixed right now
or more importantly, pay below par or at least at
par or below for a very long time. I mean,
so now's the time if if you've been contemplating, you know,
making a change to your portfolio or updating your financial
(27:42):
plan or even starting a new financial plan. And again
you're retired or or about to retire, and you have
investments that you're wanting to approve your portfolio, de risk it,
increase the dividends and interest you know, create you know,
a better, more actively managed model through professionals like Giuseppe
(28:04):
and I who have been doing this for almost a
combined fifty years, and come to that workshop on June
fourth from six to seven thirty pm at the old
spaghetti factory in Conquered called nine one six nine six
seven thirty five hundred. But that was another one, GeV Verona.
I know, I just said it briefly, but there's so
(28:25):
many like that.
Speaker 4 (28:26):
Duke Energy.
Speaker 2 (28:27):
Duke Energy is another yeah, next era, just on the
energy side. And then you know, we've uncovered stocks that
we like in our in one of our model portfolios
that that Giuseppe has created where you know, it's we
know that the weighted some of the names had on
(28:49):
the in the S and P or the nasdacs.
Speaker 4 (28:51):
So you actually.
Speaker 2 (28:53):
Created portfolios that filter all the S and P five
hundred companies to narrow it down to the top ten
and then actively rebalance those on a monthly basis. Now
doesn't mean, you know, all the positions change on a
monthly basis. Sometimes they don't change at all, but sometimes
it's one or two change. But the fact that it's
(29:17):
just so hard, I don't understand how people on their
own that are retired in their sixties or seventies would
even want to attempt what we do that takes more
well in some of the forty hours a week.
Speaker 3 (29:29):
Sometimes some of the things that come up surprise me.
I mean, one of the big winners within that that
portfolio you're talking about, you know, has been nowhere're going
Royal Caribbeans.
Speaker 4 (29:38):
Yeah. I was going to say, you.
Speaker 3 (29:39):
Know, and it had a cumulative like return of like
two hundred and forty percent, you know, of being in.
Speaker 4 (29:44):
The portfolio of last year, right, No, it was longer
than that. It's been.
Speaker 3 (29:48):
It's been in the portfolio for I want to say
almost two years.
Speaker 2 (29:52):
But still or still one hundred and what's.
Speaker 3 (29:54):
But you wouldn't think Royal Caribbean. You're thinking of I'm
going to put my money in a video, you know
what I mean? So, yeah, and there's other names in
there that you wouldn't even think of.
Speaker 4 (30:05):
But we've built it. We've built it.
Speaker 2 (30:08):
Yeah, we've built process that you've created.
Speaker 3 (30:11):
Yeah, built a process right, because there's thousands of investments
out there.
Speaker 4 (30:16):
So what do you put Yeah, what do you put
your money in? Do you put it in?
Speaker 3 (30:19):
Just what's appearing on on the TV, what Jim Kramer
is saying, or maybe the inverse of what Jim Kramer.
Speaker 2 (30:25):
Say, I have that that that you do, the inverse
of whatever Jim Kramer says. We look at the station
he works for. You can't trust the thing coming out
of any well they have they have.
Speaker 3 (30:36):
They have an ETF fund that's actually inverse Kramer fund
and actually has done pretty well. But it's all about
having a process, putting it down right, and then having
it revisit it every month to see, you know, is
there other names that should be replacing any of the
names that are in the portfolio existing and have certain
(30:59):
criteria that are in there to gauge whether you continue
to hold on to a name or it's time to
swap it out for something else that might be a
better opportunity, you know, for some some improved growth or dividends.
And it's not just we don't just focus on growth.
We we focus on divid.
Speaker 2 (31:18):
Focus more on the income side of total return before
growth the growth. A second, not that we don't have
growth in people's portfolios, but a lot of the return
that people need comes from the fixed side and the
alternative side versus in the dividendside versus you know, pure
growth stocks that you know, you're looking for pe expansion
(31:41):
and multiple expansion, and that's how you make your money.
Now we're looking for you know, six seven, eight, nine,
ten percent, you know, either fixed or dividend returns to
get them to their total return versus.
Speaker 4 (31:57):
Especially in retirement, to create that cash flow.
Speaker 3 (32:00):
And then you're not in a position where you have
to sell portion of your portfolio to create create cash
in order for you to spend it for whatever it
is this you need to spend in retirement.
Speaker 2 (32:09):
Yeah, keep in mind that, you know, even even the
best investment out there that has a great dividend a
great track record or a great interest rate. There is
no such thing of an investment that doesn't have risks,
that doesn't include, you know, the ability to lose you know,
(32:31):
money if if a bad decision was made, meaning I
got in at a high price, I panicked and I
got out at a low price, And that's often what
we help people avoid. So but keep that in mind
that if you're hearing something you know on the radio
or on the internet, and it sounds too good to
be true, chances are it is too good to be true.
Speaker 4 (32:53):
Well, I did hear something.
Speaker 3 (32:55):
I was watching some YouTube videos, and I can tell
you a little bit more about that when we get
because it's just the way it was presented, was like, Wow,
this is easy. Why doesn't Why doesn't everybody do this?
But because, but because we know what's going on behind
the seams, it's not.
Speaker 4 (33:10):
It's not as easy as anybody can just go out
there and doing it.
Speaker 2 (33:12):
So we're going to talk a little bit about options.
You're listening to the Wise Money Guys radio show. I'm
your co host John Scambran. I'm here with my partner
Giuseppe Visconti, and Joseppe mentioned something that I gave part
of it away, which is, you know, you were listening
to this guy, and I do want to expand upon
you know where you're going, but options where options are
(33:34):
appropriate or not appropriate in our opinion, And my opinion
goes back a very long time, and just right off
the bat, I would say that if you're seeing anything,
especially a get rich, you know, uh kind of.
Speaker 4 (33:52):
Well, i'll tell you what. I'll tell you what I saw.
Speaker 2 (33:56):
Again, it goes back to if it sounds too good
to be true, it believe but the way he's too good,
but the way.
Speaker 4 (34:02):
He presented it, and he presented it, and he had.
Speaker 3 (34:04):
His name, and he's a CPA, right, so automatically some
people are going to look at and say, oh, he's
a CPA.
Speaker 4 (34:09):
He knows what he's talking about.
Speaker 3 (34:11):
And his pitch, right I listened to about the first
five minutes was you know, typically you want to retire
and maybe spend sixty seventy thousand dollars a year, and
you know, if you have a million dollars, you have
an earning of and he put like the math out
there and broke everything. He broke everything down very simple
(34:32):
layman's terms, and put it on the screen. You know,
a million dollars with a seven percent return is seventy
thousand dollars. And if you do that every year, great,
he says, but you know what if you only have
three hundred thousand. And that was the whole kind of highlight, right,
is how to retire on three hundred thousand dollars and
that you can retire on three hundred thousand dollars the
(34:53):
same as somebody with a million dollars and generating sixty
seventy thousand dollars a year or more close to one
hundred thousand dollars a year by by way of options,
and having an annually annualized return of thirty percent a year. Right,
And so I was like, Okay, where's he going to
go with this? Obviously he's selling something, right, selling a
(35:15):
put or a call or what have you. And he
started off with selling a put of a company.
Speaker 4 (35:22):
He pulled up Apple as an example and sold.
Speaker 3 (35:25):
A put and he says, the goal is to make
three percent a month, right, And he's presenting it like
you know, piece of cake. Right, we could do this,
We could do it, and you know we do do
this for clients, but it's not without any risk, it's not.
Speaker 2 (35:41):
Not without a long term track record of experience, you know,
using these these more advanced strategies which seem vanilla to us.
But anybody trying it for the first time because they
heard some commercial or read something on the internet, you
usually end up blowing yourself up.
Speaker 4 (36:02):
That's the thing.
Speaker 3 (36:03):
And so they think, like, oh, I got three hundred
thousand dollars, man, I can really I don't need to
build it up ten million bucks and then get six
seven percent return or what have you.
Speaker 2 (36:11):
To I'm going to get thirty.
Speaker 4 (36:13):
Yeah, I'm just going to I could do.
Speaker 3 (36:14):
I can retire now, right right, and I can follow
this process of this guy who's a CPA and like, Okay,
the reality that you're going to make thirty percent a year,
year in, year out, every year, yeah, it's not reality. Now,
then you're going to be competing with what's called the
medallion fund.
Speaker 2 (36:30):
Right, It's possible, but it's not realistic. I mean options
have risk, just stocks have risk, just like just about
any investment has a risk. And some years there will
be good years and some years they will be bad
years now.
Speaker 4 (36:44):
But the bigger risk is the time that you're in
the option exactly.
Speaker 2 (36:48):
Time decay that is the biggest risk now.
Speaker 4 (36:50):
And maybe explain a little bit more of what time decay.
Speaker 2 (36:53):
Is, so you know, when you own a stock, in essence,
you have no time constraint on making money on that stock.
For example, you mentioned Apple. Let's say you own shares
of Apple and you know you've owned them for a
long time, I mean, and you plan on owning them
for an even longer period of time. There's a good
(37:16):
chance that at some point Apple will will go up
in value. You're not up against the clock. Whereas if
you buy let's just keep it simple. If I buy
an option, a call option on Apple, and let's say
I buy it for one year, now, I have one
(37:37):
year to make money. I mean, the expiration is one
year out. The expiration is one year out. I have
one year for Apple to go, you know, at at
at a level above from a from a from a
premium perspective, to go above the premium that I paid.
I only have one year for that to happen, in
(37:59):
the simplest form to make money. And if it doesn't happen,
or a lot of times, what happens is you know,
there might be a spike up, but people get greedy.
They go, oh, man, we call it great. Right, I
paid fifty bucks for one contract that's five thousand dollars,
and now it's worth one hundred bucks. And then they
(38:19):
don't double money and double their money instead. Look what
Apple did. Apple went up to, you know, a new high,
and then Apple came way down from you know, the
almost the mid two's, well about the mid two hundred
range to about one hundred eighty. Now, imagine you owned
that call option, just like owning the stock, and you
(38:40):
didn't do what we recommend, which is always take some
profit off the table, especially if something's gone up thirty fifty,
one hundred percent or more, especially if it's in a
short amount of time. Yeah, take that money and run. Now.
One of the ways that we really are active in
(39:01):
helping people with the use of options that we manage
is let's take Apple again. We have a client that
has over ten thousand, that has about ten thousand shares.
I think it's nine thousand, eight hundred and something to
be exact.
Speaker 4 (39:18):
But we'll do political fact check on that.
Speaker 2 (39:21):
Yeah, but that's a very large position in one stock, right,
it's a two million dollar position in one stock. What's
the downside of that, well, the downside of owning that
much of one company is whether or not that company
pays a diven or not.
Speaker 3 (39:41):
Because what that person's faced with is if they just
sell out of all of them and say, okay, I'm
just gonna take my profits and around, they have a
massive capital gains tax bill that they would have to
pay exactly.
Speaker 2 (39:52):
That's what they also because this is in a taxable account,
by the way, that's not in an IRA. And so
you know, here's here's the outside, just one of them,
which just set me just pointed out if I sell,
I'm going to pay a tremendous amount of tax. The
other thing is by holding on it's a massive part
of my net worth, but it doesn't pay me anything
(40:13):
worthwhile for continuing to own that stock. And so Apple
pays what less than a one percent? Yes, so point
seven percent. So I got two million dollars in Apple,
and I'm going to make fourteen hundred bucks year. Yeah,
fourteen hundred bucks. I mean that's laughable. So what we're
(40:34):
doing for this forteen client fourteen thousand, yes, thank you,
is we're selling call options as an income strategy, with
the scenario being we sell out of the money call options,
which just to give you a little bit more background
of what that is. So Apple's trading around the low
(40:56):
two hundreds right now. It's bounced from one ninety eight
last week to about I think the high that I
saw it hit was about two hundred and five dollars
a share, And currently we have two hundred and ten strike,
two hundred and fifteen strike and two hundred and twenty
strike calls that were short. We've sold them for the
(41:18):
income that it's raised, and when those expire, that's the
goal is to have those expire worthless. Where we don't
expect Apple in the short term to go above two
ten or even two fifteen or to twenty. These are
short expirations and we expect to keep all of that
(41:41):
premium that was received, and so far in just a
few short months, forty thousand of premium has been received. Now,
if we turn around, and this is not a guarantee,
this is a if we turn around, because again it's
the use of options. Options are not guaranteed. Options have
(42:02):
an expiration. Options, if you don't know what you're doing,
can be more risky than the stock. But in this case,
the only risk is you might have to sell the
stock at the higher strike price and pay tax.
Speaker 3 (42:16):
Because the scenario could be then all of a sudden,
the back and forth with China and all this. I mean,
this is probably not going to happen, But what if
all of a sudden the administration current administration and Trump says,
you know what, don't worry about it, Apple, you want
to continue to manufacture in China.
Speaker 4 (42:32):
We're not going to block or make your life hard anymore.
Do what you want to do.
Speaker 3 (42:36):
Yeah, boom, The stock the very next day can go up, right,
and that can change the whole strategy, right, or the
options that you're already.
Speaker 2 (42:46):
In exactly right. So again, this is why you never
so first and foremost, just a couple of housekeeping house
keeping items when it comes to selling calls against a
large concentrated position. Never sell the you know, the exact
number of contracts for the total number of shares that
(43:09):
you own, because it, first of all, it's not necessary
to make a great return. We're not doing that. I mean,
we're we're typically selling you know, a portion around half
the equivalent number of contracts that that multiplied by one hundred.
Speaker 3 (43:27):
It could be even less because the scenario that I
just put out there. I mean, we don't have nobody
has a crystal ball, and if that happened and you
had all of your shares on the hook, yeah, what
a mess that would.
Speaker 2 (43:37):
Be, well exactly, And then there are strategies to what
to do if that does happen. You can roll your position,
you can you know, go along in another position, in
the same position rather. But they're but we're getting ahead
of ourselves. Just simply a good use of options is
writing covered calls. And especially when maybe you retired from
(44:04):
a company like Apple, it could be any publicly traded company,
and for that matter, you have a large concentrated position,
there's a large you know, potential tax bill, and the
position doesn't pay a good dividend and you need it
to supplement your income. That is where covered calls come in.
(44:26):
That is what we've been doing, at least I've been
doing for a very long time, and we're in fact,
I'm going to show you that strategy and a little
more detail at our workshop. We do show a live
example of a covered call strategy. And that workshop for
people who are retired, are about to retire, that have investments,
(44:49):
is from six to seven thirty pm on June fourth,
in Conquered at the old spaghetti factory called nine one
six nine six seven thirty five hundred. Well, I hope
you enjoyed the show this fine Saturday afternoon. Have a
wonderful weekend.
Speaker 4 (45:05):
Bye all, Bye, Helpe's talk to you next week.
The Wise Money Guys Radio Show is brought to you
by One Source of Wealth Management SEC licensed three one
nine zero seven eight. For disclosures and more information, visit
our website One Source WM dot com.
Speaker 2 (00:14):
Welcome to the Wise Money Guys radio Show. I'm your
co host John Scameran, and here with my partner extraordinaire
just up to Viscontin, and we are certified portfolio managers
that specialize in helping people who are retired or about
to retire manage their money and as investment experts. One
of the things that we pride ourselves on is trying
(00:35):
to help people de risk their portfolios. In light of
some of the stuff we'll talk about today, like this
Teriff decision from now another rogue judge.
Speaker 3 (00:50):
Nvidia Earth and federal courts blocking yep Trump yep right.
Speaker 2 (00:55):
And then the Nvidia earnings which didn't surprise me at all,
and other things that are relevant to the stock market
and the economy and investments. But before we do that, uh,
you can find more information about us on Wysemoneyguys dot
com and you can also watch us, by the way,
(01:16):
on our YouTube channel, which we were talking about this morning,
and that's also Wise Money guys. You can just search
Wise Money Guys and you'll find us on YouTube. But
more importantly, if you want to see us in person.
We are having our Roseville Workshop for people who are
again retired or about to retire.
Speaker 4 (01:38):
Conquered. Did I say Roseville?
Speaker 2 (01:41):
Yeah, you're right, we did.
Speaker 3 (01:43):
We had our Rooseville. We're coming back to Conquered. We
hadn't been there before. We had our first one earlier
this year, and now we're going to be doing our
second one in Conquered because it went well, but there
was a lot of bad weather, so we're now trying
for some good weather. Yeah, come junior.
Speaker 2 (01:58):
Fourth it was literally what do they call it, an
atmospheric river today of the workshop. But again, if you're
retired or about to retire and you're just watching your
investment portfolio, that's who should attend, by the way, someone
(02:18):
who has an investment portfolio. It's a meaningful part of
your legacy, your net worth, your livelihood. If you don't
have investments, or aren't concerned about investments, then this workshop
isn't for you. But we're going to show you live
how we have addressed and handled volatility, how we have
(02:44):
created and enhanced income streams for our clients, but more importantly,
how we have de risked many of our clients' portfolios
that don't want to be or have the risk or
be more aggress have like they had been in the
past prior to retirement. So it's it's crucial that you attend.
(03:08):
If any of those concerns or or things that we
just said sound like you, you'll want to call nine
one six nine six seven thirty five hundred to register
for our conquered workshop not Roseville at the old Spaghetti
Factory again called nine one six nine six seven thirty
(03:30):
five hundred. So did you see the news the first
thing this morning? So I obviously start watching the news,
you know, six am, sometimes five thirty am, because I
want to see what the fu.
Speaker 4 (03:42):
Is that, what's good is that, what goes on?
Speaker 3 (03:43):
Because sometimes you come in all amped up, sometimes you
come in a little somber. So I just have to
kind of get the gauge of what the news is
saying that morning, and then.
Speaker 4 (03:53):
Yeah, and then I can figure out what'll do.
Speaker 2 (03:54):
For the mornger we are and it's driving me crazy
that we're allowing and I don't and I don't understand
what Republicans are doing. The fact that Republicans who control
Congress can control that, which is the House in the
Senate have not passed laws that say that if you're
(04:14):
a district judge, you cannot rule on things outside of
your district. And more importantly, you can't from an activism perspective,
change laws that have been passed by Congress. Only Congress
can do that.
Speaker 3 (04:32):
So the fact you're talking about the blocking of the
reciprocal terrorists.
Speaker 2 (04:36):
Yeah, So the first thing I do is I wake
up this morning again, it was about five point thirty.
I started watching the news and reading, you know, some
of the research things that we follow, and and sure
enough I see the headline, you know, US judge blocks
Trump tariffs. How you know it was the And we
(04:57):
actually looked up the acts, typical Trade Agreements Act of
thirty four and then the Trade Expansion Act of sixty two.
Now we don't need to dive into the weeds of
those because we're not lawyers and obviously not congressional scholars.
But the president period has the authority to do what
(05:18):
he is doing. And who doesn't have the authority to
do what they're doing. Are these district judges. They have
zero authority. So what I don't understand. And then of
course you see the markets, you know, react positively or negatively.
Of course, what I don't understand is why the Trump
administration even follows why they don't just flat out ignore
(05:43):
these decisions from these activist judges that aren't following the
law whatsoever. I mean, they're literally just making up laws.
Speaker 3 (05:51):
Maybe they like the spike in the market, Well they
don't want to pour they want to pour cold water
on it quite yet.
Speaker 2 (05:57):
That that could be. Or maybe they've had Nancy Pelosi.
Speaker 3 (06:00):
It was it was on the back of you know,
great earnings from Nvidia, and then you had that come
out and the market spike, you know, the futures on
that day spiked, and so maybe they don't want to
pour cold water on it quite yet.
Speaker 4 (06:11):
Yeah.
Speaker 2 (06:12):
So, or my other thing is maybe they told, you know,
Nancy Pelosi, hey, we're gonna we're gonna make another you know,
ruling from the bench that you should you know, you
should short or or either short or go along certain
things based on our ruling. So, because how that woman
(06:33):
and her husband get away with you know, the billions
of dollars of assets.
Speaker 3 (06:38):
Well it should be and not only here, but I
think that should be blocked for all, you know, members
of the government that have the inside information of what's
going to be coming down the pike before the before
the public does, because that's just totally unfair. I mean,
if we did it in our business, we'd be done.
Oh yeah, period, I mean you find done, maybe even jailed. Right, Yeah,
(07:00):
you can't do insider trading, So why penaltic that essentially
is kind of like insider trading. No, it's one hundred
percent insider trading. I mean they're using legislation that they
know is coming or that they're trying or will pass
to make their investment decisions. Fact, that's one hundred percent
insider trading. So but again, all we can do is
(07:26):
help you know, our clients and help people that you
know are willing to listen on strategies that we have
implemented to always not always, but most of the time
find opportunities for increasing your income or reducing your risk
(07:49):
or increasing your growth potential of your portfolio, depending on
what your specific goals and objectives are. Yeah, I think
the common theme is is finding way when we get
clients' portfolios right, if they've already had an investment portfolio
out there existing through some other firm, or if they
did themselves and finding ways of taking some unnecessary risk
(08:12):
off the table to get in order to get them
to their goals. A lot of times people think they
need more growth or take more risk than they need
to right in order to obtain their goals. And then
once we go through and do an analysis, you know,
we find and show them and give them a different
perspective of, hey, this is how you can actually take
some unnecessary risk.
Speaker 4 (08:32):
Off the table.
Speaker 3 (08:34):
So when you have some uncertain times like what we're
going through and what we've been going through for quite
some time now and especially this year, is it wouldn't
it be better to get you from point to point
B without taking them out of risk?
Speaker 2 (08:47):
Right?
Speaker 3 (08:47):
If you're at a form a scale from one to ten,
and you're at like a seven or eight, and we're
able to dial it down to maybe a five and
still through planning and software and show you that you're
able to get from point A to point B still
and you don't have to be at a seven or eight.
You can be at a five from a one through ten,
ten being the highest risk and one being the lowest.
I mean, who doesn't want to.
Speaker 4 (09:08):
Take that right, Yeah, exactly.
Speaker 2 (09:10):
And one of the things that continues to blow me
away is the literal, you know, amount of dividends and
interest you can still find in investments right now in
the form of alternatives, structured notes, you know, value stocks
that have increased their dividends every year, sometimes for decades.
(09:33):
Interest rates in bonds are still very attractive because the
prices have come down recently. And so just from a
timing perspective, there's always a good time when you're working
with you know, money managers like Giuseppe and I to
find ways to improve upon the portfolio that you may
(09:56):
already have. And so we'll talk about more economic things,
but more importantly the things that we see that you
can do to you know, have a good strategy in
place for the rest of the year. You're listening to
the Wise Money Guys radio show. I'm your co host
John Scambray and I'm here with my partner, and we
(10:18):
did mention that we were going to talk about in
Nvidia and more importantly while that why in Nvidia earnings
are important because it goes against the grain of you know,
the narrative not the data, but the narrative that you know,
tariffs in and the economy and and everything that's being
(10:39):
done is negative, you know, from a from an inflation,
from a growth from from employment, so on and so forth.
And then here you have it in Vidia, who's probably
one of the biggest companies there is to be subject
to the China tariffs, and again it continues to make
(11:03):
record amounts of money. Because I don't think the world
or or certainly not mainstream news, has grasped how big
the artificial intelligence transformation uh really is. I mean, everything
in the future is going to be dominated by you know,
(11:28):
machines and systems and software and robots and things that
literally can replace my oh my can replace.
Speaker 4 (11:39):
Instead of lions, tigers and bears.
Speaker 2 (11:41):
Unfortunately every type of job that that humans now do
and so but obviously different. No, the liver. I mean
you already have machines that pick crops, machines that make
flip burgers, machines that fry French fry or.
Speaker 3 (12:01):
Carpenters, electricians, plumbers that that maybe at some point, maybe
at some point that could be further down.
Speaker 4 (12:08):
The versus versus that computer programmer.
Speaker 2 (12:10):
Which you think of one of the most important labor
type jobs there is is that of a surgeon. And
you definitely already have robotics, you know, they've already been
out for right, but it will improve way beyond what
the capable capability was years ago when it started to
where it could go now. But but I got on
(12:32):
that diet tribe about Nvidia, and so here we are
with Nvidia, and what were the numbers just at the.
Speaker 4 (12:38):
Sixty sells growth?
Speaker 3 (12:41):
They beat on EPs earnings per share and also revenue,
which is great. Initially the stock after hours because they
were reported after after the market closed and shot up.
Speaker 4 (12:54):
I think it was up like.
Speaker 3 (12:55):
Five over five percent after hours, and and if youtures
also were up a good amount, you know, like one
and a half to two percent, depending on the endsicy
that you tracked after.
Speaker 4 (13:08):
Hours as well. Because then.
Speaker 3 (13:12):
On top of Nvidia came this whole thing with a
federal court, you know, court rolling of blocking Trump and
the tariff.
Speaker 4 (13:19):
So market reacted to that as well.
Speaker 3 (13:21):
But then interestingly enough, the next day, right Thursday, markets
opened and gapped up. Gapped up just means that it's
started off at a higher level than the previous day,
and then it's and then it's trickling down primarily because
(13:41):
of uncertainty, like is this court rolling gonna gonna stay
in Vidia? Did you know as far as the negatives
and Vidia did have some negatives from its earnings call
I think like eight billion dollar hit based off of
the blocking of uh China buying those H two O chips.
Speaker 4 (14:02):
So you know, is it is it gonna shut down
in Vidia? No?
Speaker 2 (14:05):
No?
Speaker 4 (14:06):
Is it?
Speaker 3 (14:06):
Is it going to you know ruin? I think the
big thing with the AI thing is, you know, even
though how transformational and important it is, and how this
is kind of the next you know, it could be
the next like we went through the dot com and
the internet phase right now this is is this the
next like internet phase could be? But it's what what's
the true value of these companies? And I think what
(14:31):
what the market and investors are trying to figure out
is how much money needs to really be invested to
get the output needed for everything that's going on in
the AI world.
Speaker 4 (14:45):
Is it just enough? Is it too much? Right?
Speaker 3 (14:48):
And so Deep Seek, which came out earlier kind of
through a little bit of a wrench of it, is
that viable. I don't know, is there other companies out
there and competitors that might find ways that can that
that can do it cheaper, and then you know what
does that do for some of the AI the AI
darling really which is in video.
Speaker 2 (15:07):
But if you think about that, that's yes, I agree
with what you're saying, but that's not where in Vidia's
future of making money is or the future of AI
is the chatbots, you know, or our first exposure. But
it's really about the data and the data centers that
this AI revolution is creating, right because with machines being
(15:34):
able to you know, quantum compute, not supercomputer, now quantum compute.
So think of it like this. You know, these chips
were you know, when they went to super computer capability,
it was like going on a from a two lane
road to a freeway. Now quantum computer computing is basically
(15:57):
you know, take take a regular freeway that might be
three lanes in each direction, and now you have these freeways,
especially around you know, southern California Interstate five and four
oh five and ninety one, where they're eight ten lanes.
Speaker 4 (16:15):
Maybe that's not a good direction.
Speaker 3 (16:16):
Maybe it's not a good example because las big as
a freeway is nobody's going anywhere, right, well, now you're flying.
Speaker 4 (16:23):
You're flying in a plane at that point, you know,
but but.
Speaker 2 (16:26):
You look at if you're looking for the reason why
and video and in my opinion, now.
Speaker 3 (16:32):
May I understand what you're saying as far as what's happening.
Speaker 4 (16:37):
What I'm focusing on is just.
Speaker 3 (16:41):
The focus is on in video, like everything stops right
in video posted earnings. Asia markets opened first, okay, because
in video was posted earnings after hours.
Speaker 2 (16:53):
Yeah yeah, no, not yesterday on Wednesday.
Speaker 3 (16:56):
Wednesday, yeah, Wednesday after hours and video posted earnings. Right,
it was a beat, and then Asian markets opened up
and boom, Asian markets are up.
Speaker 4 (17:05):
It's like everybody.
Speaker 3 (17:06):
It's almost like when Jerome Powell and FMC, everything stops
and the whole focus.
Speaker 4 (17:12):
Is on one come.
Speaker 3 (17:13):
So my point is is they're spending billions and billions
and billions of dollars.
Speaker 4 (17:17):
And I threw the deep seek out there.
Speaker 3 (17:18):
You know, I don't know if that's viable, but I'm
just saying the competition out there is imagine and we
already saw. What happened is the Mac seven went down
almost forty percent. If you just combine all the Max seven.
Speaker 2 (17:29):
Oh right from peak to troughy from February nineteenth through
April eight through through April right when the whole tariff
thing was ramped up and hit its peak, right, and
we had Liberation Day, and so that went down almost
forty percent.
Speaker 3 (17:42):
Well that there was a lot of other stocks that
went down to but that really drugged down the S
and P five hundred NASDAC indices. And now here we
are and we have we've rebounded because of the delays, right,
the temporary ninety day delays with China and then the
rest of the country's around for these elevated tariffs, and
you see the max seven really ramp up more so
(18:03):
than just the indices itself. Yeah, So the having the
importance and the focus on Nvidia, and so my point
is is we don't quite know exactly as far as
quantifying the amount of money these companies are putting out
there that are so highlighted out here in Vidia and
Microsoft and Google, right who kind of the leaders out
here in the AI world two years from.
Speaker 4 (18:24):
Now will probably be a whole slew of other names
right there.
Speaker 2 (18:27):
Well, there is, and and they're just not as important
right now. To take it a step further, and again,
why this is important is because these this is the analysis,
this is the thought process that we go through before
putting a position in our client's portfolios. First from a
from a risk and and a and a comfort level.
(18:50):
It does does the investment that we risk versus reward
right match the person's goals and objectives. But but again
it's important because as the ways you're going to find
new growth opportunities to really what you're saying might not
necessarily be in an Nvidia. However, you know in Vidia
(19:12):
and the early things where they were spending billions on
to just be the first to say, oh, you know,
look at our chat bot or this that or that's
not where a company like in Vidia's future is they
I'll give you we're in the right. In Vidia's future
is in their GPUs and other companies buying their GPUs.
(19:35):
For example, core Weave, what a brilliant model. So core
Weave is buying you know, excuse me, not buying, borrowing
to buy in Nvidia GPUs. They're in Vidia's largest customer.
And then what they do with those GPUs is they
create a massive data center and then they rent out
(20:00):
the GPUs to other companies where they're borrowing at ten
percent but they're made to buy all the GPUs and
build the data centers, but then they're making twenty to
thirty percent, you know, on on and above what the
cost of the GPUs and the data center was to
put in place. And so the ways that money is
(20:25):
being made in artificial intelligence isn't just as simple as
you know, the chat bot or the AI chip. It's
more to me and where I see opportunities like in
this core weave, which I think could be a double
you know, because we're just scratching the surface.
Speaker 4 (20:43):
On the stata is from the lows Well it just opened.
Speaker 2 (20:47):
Well that's because it just went puttlight and it's it's
more than doubled from its IPO, but it's growing at
an astronomical rate. And that type of opportunity, like I said,
which is which is really the offshoot of what what
opportunities are out there from AI and AI.
Speaker 3 (21:09):
Chips kind of like so kind of like your point,
like Amazon, People look at Amazon and it's like shopping online,
but Amazon isn't just shopping online, not it's the cloud
right aws exactly sector of of Amazon, which is which
is very very profitable.
Speaker 2 (21:25):
And then you look at another company like core Scientific,
which is isn't a isn't a blockchain or or a cryptocurrency.
But they're making money off of cryptocurrencies because cryptocurrencies are
massive data dependent, energy dependent, you know companies, and so
(21:50):
outcomes of Core Scientific then you.
Speaker 3 (21:53):
Buil and then you boil down to some of the
companies that are going to provide the source of energy.
Speaker 2 (21:59):
But one of the biggies that we were discussing is
the power needs of the data that has created the
massive amounts of data that's not only created from from
computers that that now do machine learning, but from cryptocurrency
and other new technologies. I mean, oh yeah, crypto mining,
(22:22):
so on and so forth. But companies are now figuring
out how important you know, morphine their energy production into
production that's not just for cars, boats, houses, you know, uh, trainsmobiles.
For the way that AI is going to impact you know,
(22:45):
mankind and its future.
Speaker 3 (22:46):
So data centers, mining centers, for cryptocurrency. It just is
it going to be using a ton of energy.
Speaker 2 (22:52):
And some of these investments that have just been fantastic
is like ge Verona, core Weave, n video and many more.
Speaker 3 (23:01):
And so but as you were talking about just even
traditional like Phillips sixty six.
Speaker 4 (23:06):
Yeah, which you wouldn't even think of as a tie
to AI.
Speaker 3 (23:11):
Or cryptocurrency mining or anything. But you were saying that
they're now realizing.
Speaker 2 (23:16):
Exactly shifts and just recently and I don't know the
exact date, but the types of companies they're partnering with
because they realize that, hey, there's a massive market out
there that's untapped for a traditional company like US that
has access to oil and oil refinement to turn that
into different types of power versus just turning it into
(23:41):
gasoline or diesel as our main revenue source. And so
the point of all that is is this is what
you and I think about. This is the level of
analysis and research and we're just scratching on the surface
here on the show this morning that we dive into
(24:02):
to find, you know, opportunities for our clients to make money.
So if you're thinking, gee, I missed out on the Nvidia,
the Microsoft, the Amazon, this, that or the other, you
haven't missed out on anything. I mean, we just we
just started this AI thing. Really in the last twelve
months have really reaped exactly ways you make revenue from
(24:28):
the AI revolution. We don't even know all the ways.
Speaker 3 (24:31):
Yet still it's like getting into Apple computer, you know,
maybe in the late early even just Apple computer in
the early two thousands. Imagine that, yeah, right, because a
lot of the talk and everything was in the nineties,
in the late nineties. But even if you didn't get
in then and you got in the early two thousands, right,
(24:52):
I mean, look at how much exponentially things have changed
from the desktop Macintosh computer, right, and then and then
all the way to the smart computer.
Speaker 2 (25:04):
The basic language and learning how to you know program basic?
Speaker 4 (25:08):
I mean what a joke or doss.
Speaker 3 (25:10):
And then you had wind, you know, had you had
Microsoft Windows come out revolution, then you had Apple have
their own you know platform, right, and then you came
out with the first smartphone, which I think was in
two thousand and six, yes, right, the candy candy bar.
First smartphone just blew everything away.
Speaker 2 (25:30):
But here's the thing. If you're thinking that, gee, I
missed the boat and or hey, I'm too old to
have you know, some sort of growth opportunity in your
in my portfolio, you haven't, but you can't go it alone.
(25:51):
Is really what it boils down to. We've been just
talking about all kinds of different investments that that you know,
have a very bright future, but there's so many more
and working with somebody like Giuseppe and I to help
you manage your money and take advantage of this transformation
(26:11):
that's now fourth Industrial Revolution that we're now in is crucial.
So in order to see us live and to see
some of the things that we're doing to really help
our retired clients and our clients that are working towards retirement,
you know, come to our workshop in Conquered on Wednesday,
(26:34):
June fourth, from six to seven thirty pm. You absolutely
have to call now to register because we're going to
have to start typically in the last week, we have
to start turning people away because we get so many
registrations so called nine one six, nine six, seven, thirty
five hundred. You're not gonna want to miss this one
(26:57):
because again we're getting a little bit of a of
a break. As far as you know, we predicted a
stocks would rise up, we'd need a we'd need a
slight pullback in order to start a new leg up.
But at the same time, bonds have pulled back, and
when interest rate policy does change, uh, then you know
(27:21):
you're not going to have the same opportunity to get
the type of interest rates that are fixed right now
or more importantly, pay below par or at least at
par or below for a very long time. I mean,
so now's the time if if you've been contemplating, you know,
making a change to your portfolio or updating your financial
(27:42):
plan or even starting a new financial plan. And again
you're retired or or about to retire, and you have
investments that you're wanting to approve your portfolio, de risk it,
increase the dividends and interest you know, create you know,
a better, more actively managed model through professionals like Giuseppe
(28:04):
and I who have been doing this for almost a
combined fifty years, and come to that workshop on June
fourth from six to seven thirty pm at the old
spaghetti factory in Conquered called nine one six nine six
seven thirty five hundred. But that was another one, GeV Verona.
I know, I just said it briefly, but there's so
(28:25):
many like that.
Speaker 4 (28:26):
Duke Energy.
Speaker 2 (28:27):
Duke Energy is another yeah, next era, just on the
energy side. And then you know, we've uncovered stocks that
we like in our in one of our model portfolios
that that Giuseppe has created where you know, it's we
know that the weighted some of the names had on
(28:49):
the in the S and P or the nasdacs.
Speaker 4 (28:51):
So you actually.
Speaker 2 (28:53):
Created portfolios that filter all the S and P five
hundred companies to narrow it down to the top ten
and then actively rebalance those on a monthly basis. Now
doesn't mean, you know, all the positions change on a
monthly basis. Sometimes they don't change at all, but sometimes
it's one or two change. But the fact that it's
(29:17):
just so hard, I don't understand how people on their
own that are retired in their sixties or seventies would
even want to attempt what we do that takes more
well in some of the forty hours a week.
Speaker 3 (29:29):
Sometimes some of the things that come up surprise me.
I mean, one of the big winners within that that
portfolio you're talking about, you know, has been nowhere're going
Royal Caribbeans.
Speaker 4 (29:38):
Yeah. I was going to say, you.
Speaker 3 (29:39):
Know, and it had a cumulative like return of like
two hundred and forty percent, you know, of being in.
Speaker 4 (29:44):
The portfolio of last year, right, No, it was longer
than that. It's been.
Speaker 3 (29:48):
It's been in the portfolio for I want to say
almost two years.
Speaker 2 (29:52):
But still or still one hundred and what's.
Speaker 3 (29:54):
But you wouldn't think Royal Caribbean. You're thinking of I'm
going to put my money in a video, you know
what I mean? So, yeah, and there's other names in
there that you wouldn't even think of.
Speaker 4 (30:05):
But we've built it. We've built it.
Speaker 2 (30:08):
Yeah, we've built process that you've created.
Speaker 3 (30:11):
Yeah, built a process right, because there's thousands of investments
out there.
Speaker 4 (30:16):
So what do you put Yeah, what do you put
your money in? Do you put it in?
Speaker 3 (30:19):
Just what's appearing on on the TV, what Jim Kramer
is saying, or maybe the inverse of what Jim Kramer.
Speaker 2 (30:25):
Say, I have that that that you do, the inverse
of whatever Jim Kramer says. We look at the station
he works for. You can't trust the thing coming out
of any well they have they have.
Speaker 3 (30:36):
They have an ETF fund that's actually inverse Kramer fund
and actually has done pretty well. But it's all about
having a process, putting it down right, and then having
it revisit it every month to see, you know, is
there other names that should be replacing any of the
names that are in the portfolio existing and have certain
(30:59):
criteria that are in there to gauge whether you continue
to hold on to a name or it's time to
swap it out for something else that might be a
better opportunity, you know, for some some improved growth or dividends.
And it's not just we don't just focus on growth.
We we focus on divid.
Speaker 2 (31:18):
Focus more on the income side of total return before
growth the growth. A second, not that we don't have
growth in people's portfolios, but a lot of the return
that people need comes from the fixed side and the
alternative side versus in the dividendside versus you know, pure
growth stocks that you know, you're looking for pe expansion
(31:41):
and multiple expansion, and that's how you make your money.
Now we're looking for you know, six seven, eight, nine,
ten percent, you know, either fixed or dividend returns to
get them to their total return versus.
Speaker 4 (31:57):
Especially in retirement, to create that cash flow.
Speaker 3 (32:00):
And then you're not in a position where you have
to sell portion of your portfolio to create create cash
in order for you to spend it for whatever it
is this you need to spend in retirement.
Speaker 2 (32:09):
Yeah, keep in mind that, you know, even even the
best investment out there that has a great dividend a
great track record or a great interest rate. There is
no such thing of an investment that doesn't have risks,
that doesn't include, you know, the ability to lose you know,
(32:31):
money if if a bad decision was made, meaning I
got in at a high price, I panicked and I
got out at a low price, And that's often what
we help people avoid. So but keep that in mind
that if you're hearing something you know on the radio
or on the internet, and it sounds too good to
be true, chances are it is too good to be true.
Speaker 4 (32:53):
Well, I did hear something.
Speaker 3 (32:55):
I was watching some YouTube videos, and I can tell
you a little bit more about that when we get
because it's just the way it was presented, was like, Wow,
this is easy. Why doesn't Why doesn't everybody do this?
But because, but because we know what's going on behind
the seams, it's not.
Speaker 4 (33:10):
It's not as easy as anybody can just go out
there and doing it.
Speaker 2 (33:12):
So we're going to talk a little bit about options.
You're listening to the Wise Money Guys radio show. I'm
your co host John Scambran. I'm here with my partner
Giuseppe Visconti, and Joseppe mentioned something that I gave part
of it away, which is, you know, you were listening
to this guy, and I do want to expand upon
you know where you're going, but options where options are
(33:34):
appropriate or not appropriate in our opinion, And my opinion
goes back a very long time, and just right off
the bat, I would say that if you're seeing anything,
especially a get rich, you know, uh kind of.
Speaker 4 (33:52):
Well, i'll tell you what. I'll tell you what I saw.
Speaker 2 (33:56):
Again, it goes back to if it sounds too good
to be true, it believe but the way he's too good,
but the way.
Speaker 4 (34:02):
He presented it, and he presented it, and he had.
Speaker 3 (34:04):
His name, and he's a CPA, right, so automatically some
people are going to look at and say, oh, he's
a CPA.
Speaker 4 (34:09):
He knows what he's talking about.
Speaker 3 (34:11):
And his pitch, right I listened to about the first
five minutes was you know, typically you want to retire
and maybe spend sixty seventy thousand dollars a year, and
you know, if you have a million dollars, you have
an earning of and he put like the math out
there and broke everything. He broke everything down very simple
(34:32):
layman's terms, and put it on the screen. You know,
a million dollars with a seven percent return is seventy
thousand dollars. And if you do that every year, great,
he says, but you know what if you only have
three hundred thousand. And that was the whole kind of highlight, right,
is how to retire on three hundred thousand dollars and
that you can retire on three hundred thousand dollars the
(34:53):
same as somebody with a million dollars and generating sixty
seventy thousand dollars a year or more close to one
hundred thousand dollars a year by by way of options,
and having an annually annualized return of thirty percent a year. Right,
And so I was like, Okay, where's he going to
go with this? Obviously he's selling something, right, selling a
(35:15):
put or a call or what have you. And he
started off with selling a put of a company.
Speaker 4 (35:22):
He pulled up Apple as an example and sold.
Speaker 3 (35:25):
A put and he says, the goal is to make
three percent a month, right, And he's presenting it like
you know, piece of cake. Right, we could do this,
We could do it, and you know we do do
this for clients, but it's not without any risk, it's not.
Speaker 2 (35:41):
Not without a long term track record of experience, you know,
using these these more advanced strategies which seem vanilla to us.
But anybody trying it for the first time because they
heard some commercial or read something on the internet, you
usually end up blowing yourself up.
Speaker 4 (36:02):
That's the thing.
Speaker 3 (36:03):
And so they think, like, oh, I got three hundred
thousand dollars, man, I can really I don't need to
build it up ten million bucks and then get six
seven percent return or what have you.
Speaker 2 (36:11):
To I'm going to get thirty.
Speaker 4 (36:13):
Yeah, I'm just going to I could do.
Speaker 3 (36:14):
I can retire now, right right, and I can follow
this process of this guy who's a CPA and like, Okay,
the reality that you're going to make thirty percent a year,
year in, year out, every year, yeah, it's not reality. Now,
then you're going to be competing with what's called the
medallion fund.
Speaker 2 (36:30):
Right, It's possible, but it's not realistic. I mean options
have risk, just stocks have risk, just like just about
any investment has a risk. And some years there will
be good years and some years they will be bad
years now.
Speaker 4 (36:44):
But the bigger risk is the time that you're in
the option exactly.
Speaker 2 (36:48):
Time decay that is the biggest risk now.
Speaker 4 (36:50):
And maybe explain a little bit more of what time decay.
Speaker 2 (36:53):
Is, so you know, when you own a stock, in essence,
you have no time constraint on making money on that stock.
For example, you mentioned Apple. Let's say you own shares
of Apple and you know you've owned them for a
long time, I mean, and you plan on owning them
for an even longer period of time. There's a good
(37:16):
chance that at some point Apple will will go up
in value. You're not up against the clock. Whereas if
you buy let's just keep it simple. If I buy
an option, a call option on Apple, and let's say
I buy it for one year, now, I have one
(37:37):
year to make money. I mean, the expiration is one
year out. The expiration is one year out. I have
one year for Apple to go, you know, at at
at a level above from a from a from a
premium perspective, to go above the premium that I paid.
I only have one year for that to happen, in
(37:59):
the simplest form to make money. And if it doesn't happen,
or a lot of times, what happens is you know,
there might be a spike up, but people get greedy.
They go, oh, man, we call it great. Right, I
paid fifty bucks for one contract that's five thousand dollars,
and now it's worth one hundred bucks. And then they
(38:19):
don't double money and double their money instead. Look what
Apple did. Apple went up to, you know, a new high,
and then Apple came way down from you know, the
almost the mid two's, well about the mid two hundred
range to about one hundred eighty. Now, imagine you owned
that call option, just like owning the stock, and you
(38:40):
didn't do what we recommend, which is always take some
profit off the table, especially if something's gone up thirty fifty,
one hundred percent or more, especially if it's in a
short amount of time. Yeah, take that money and run. Now.
One of the ways that we really are active in
(39:01):
helping people with the use of options that we manage
is let's take Apple again. We have a client that
has over ten thousand, that has about ten thousand shares.
I think it's nine thousand, eight hundred and something to
be exact.
Speaker 4 (39:18):
But we'll do political fact check on that.
Speaker 2 (39:21):
Yeah, but that's a very large position in one stock, right,
it's a two million dollar position in one stock. What's
the downside of that, well, the downside of owning that
much of one company is whether or not that company
pays a diven or not.
Speaker 3 (39:41):
Because what that person's faced with is if they just
sell out of all of them and say, okay, I'm
just gonna take my profits and around, they have a
massive capital gains tax bill that they would have to
pay exactly.
Speaker 2 (39:52):
That's what they also because this is in a taxable account,
by the way, that's not in an IRA. And so
you know, here's here's the outside, just one of them,
which just set me just pointed out if I sell,
I'm going to pay a tremendous amount of tax. The
other thing is by holding on it's a massive part
of my net worth, but it doesn't pay me anything
(40:13):
worthwhile for continuing to own that stock. And so Apple
pays what less than a one percent? Yes, so point
seven percent. So I got two million dollars in Apple,
and I'm going to make fourteen hundred bucks year. Yeah,
fourteen hundred bucks. I mean that's laughable. So what we're
(40:34):
doing for this forteen client fourteen thousand, yes, thank you,
is we're selling call options as an income strategy, with
the scenario being we sell out of the money call options,
which just to give you a little bit more background
of what that is. So Apple's trading around the low
(40:56):
two hundreds right now. It's bounced from one ninety eight
last week to about I think the high that I
saw it hit was about two hundred and five dollars
a share, And currently we have two hundred and ten strike,
two hundred and fifteen strike and two hundred and twenty
strike calls that were short. We've sold them for the
(41:18):
income that it's raised, and when those expire, that's the
goal is to have those expire worthless. Where we don't
expect Apple in the short term to go above two
ten or even two fifteen or to twenty. These are
short expirations and we expect to keep all of that
(41:41):
premium that was received, and so far in just a
few short months, forty thousand of premium has been received. Now,
if we turn around, and this is not a guarantee,
this is a if we turn around, because again it's
the use of options. Options are not guaranteed. Options have
(42:02):
an expiration. Options, if you don't know what you're doing,
can be more risky than the stock. But in this case,
the only risk is you might have to sell the
stock at the higher strike price and pay tax.
Speaker 3 (42:16):
Because the scenario could be then all of a sudden,
the back and forth with China and all this. I mean,
this is probably not going to happen, But what if
all of a sudden the administration current administration and Trump says,
you know what, don't worry about it, Apple, you want
to continue to manufacture in China.
Speaker 4 (42:32):
We're not going to block or make your life hard anymore.
Do what you want to do.
Speaker 3 (42:36):
Yeah, boom, The stock the very next day can go up, right,
and that can change the whole strategy, right, or the
options that you're already.
Speaker 2 (42:46):
In exactly right. So again, this is why you never
so first and foremost, just a couple of housekeeping house
keeping items when it comes to selling calls against a
large concentrated position. Never sell the you know, the exact
number of contracts for the total number of shares that
(43:09):
you own, because it, first of all, it's not necessary
to make a great return. We're not doing that. I mean,
we're we're typically selling you know, a portion around half
the equivalent number of contracts that that multiplied by one hundred.
Speaker 3 (43:27):
It could be even less because the scenario that I
just put out there. I mean, we don't have nobody
has a crystal ball, and if that happened and you
had all of your shares on the hook, yeah, what
a mess that would.
Speaker 2 (43:37):
Be, well exactly, And then there are strategies to what
to do if that does happen. You can roll your position,
you can you know, go along in another position, in
the same position rather. But they're but we're getting ahead
of ourselves. Just simply a good use of options is
writing covered calls. And especially when maybe you retired from
(44:04):
a company like Apple, it could be any publicly traded company,
and for that matter, you have a large concentrated position,
there's a large you know, potential tax bill, and the
position doesn't pay a good dividend and you need it
to supplement your income. That is where covered calls come in.
(44:26):
That is what we've been doing, at least I've been
doing for a very long time, and we're in fact,
I'm going to show you that strategy and a little
more detail at our workshop. We do show a live
example of a covered call strategy. And that workshop for
people who are retired, are about to retire, that have investments,
(44:49):
is from six to seven thirty pm on June fourth,
in Conquered at the old spaghetti factory called nine one
six nine six seven thirty five hundred. Well, I hope
you enjoyed the show this fine Saturday afternoon. Have a
wonderful weekend.
Speaker 4 (45:05):
Bye all, Bye, Helpe's talk to you next week.
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On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
Cardiac Cowboys
The heart was always off-limits to surgeons. Cutting into it spelled instant death for the patient. That is, until a ragtag group of doctors scattered across the Midwest and Texas decided to throw out the rule book. Working in makeshift laboratories and home garages, using medical devices made from scavenged machine parts and beer tubes, these men and women invented the field of open heart surgery. Odds are, someone you know is alive because of them. So why has history left them behind? Presented by Chris Pine, CARDIAC COWBOYS tells the gripping true story behind the birth of heart surgery, and the young, Greatest Generation doctors who made it happen. For years, they competed and feuded, racing to be the first, the best, and the most prolific. Some appeared on the cover of Time Magazine, operated on kings and advised presidents. Others ended up disgraced, penniless, and convicted of felonies. Together, they ignited a revolution in medicine, and changed the world.