November 14, 2025 • 42 mins
New AI Data Centers are drawing Big Energy demands from the grid, but do we have the infrastructure to support the new burden? Host Guiseppe Visconti lays out the investment pros and cons that come with this new category. Plus, affordability, Fed Rates into December, and the benefits of working with Certified Portfolio Managers. Boom. The Wise Moneys from One Source Wealth Management.
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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. My name is Giuseppe Visconti.
My co host John Scambray is not with us for
this week. We are One Source Wealth Management. We help families,
individuals and small businesses help grow their assets to meet
their financial goals. A lot of our clientele is pre
(00:35):
retireings and retirement community, but we help all walks of
life out there, essentially from the start to finish. And
what that looks like is really sitting down discovering more
and learning more about who you are, a little about
about your past, your current situation, more importantly, what you
want to achieve in your future. Everybody has different financial goals,
(00:57):
but different timelines, different risk tolerances, so on and so forth,
and through that discovery process, what we do is we
build out a financial plan. We see that as the
blueprint or the roadmap, albeit to be the foundation of
your overall journey, to help you get from point A
to point B and facilitating and help guide you to
(01:22):
achieve all the financial goals that are important to you
and your family. Once we have that established, then from
that point we look at the different assets that you
have to contribute towards your goals and figure out how
to best position them and invest them in such a
manner that makes sense to you, in a custom fashion
that helps to get you from point A to point
(01:44):
B and achieve your financial goals. We have a combined
experience of about fifty years, John over thirty and me
working on about twenty. I've worked with a lot of big,
large institutions and firms out there between the both of
us and really enjoy what we do and learning all
(02:05):
the different stories from all the different clients that we've
worked with throughout the years. More information on us and
our business, you can reach out either to us nine
one six nine six seven thirty five hundred. You can
also view us on our website which is wisemoneyguys dot
com or we have a lot of different information about us,
(02:30):
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of course, all the way at the bottom you can
see us and put a face to the name on
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Wise Money Guys, or you can search us by name
(02:52):
John Scambray and Joseepa Visconti. You can also reach out
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like for us to talk about or either connect with
you individually, and that's that question at wismoneyguys dot com.
Of course, you can also call us as I mentioned
before at nine one six nine six seven thirty five
(03:16):
hundred a lot of information. The biggest of them all
is the government shut down. Also, we have housing affordability innovations,
a couple potential solutions to help resolve the affordability issue
for housing. And then I'll get into the AI data
(03:38):
Center boom, the pros and cons and some of the
bottlenecks that we've been hearing from some of the tech
companies that have been exploring the potential growth, but then
also what needs to have happen and with that growth
if it's going a little bit too fast. Again, my
name is Juseppe Visconti, the Wise Money Guy Guys. You
(04:00):
can find us on Wise money guys dot com. You
can also find us on YouTube and search the Wise
Money Guys or John Scambray and Joseppi Visconti, where we
upload our videos for the Wise Money Guys show and
you can see our pretty faces to put a face
(04:22):
to the voice. You can also enter a question if
there's a topic or specific question that you have and
reach out to us directly at the question at wisemoneyguys
dot com. We have more information and handy tools and
calculators on our website which I mentioned, which is just
(04:43):
wisemoneyguys dot com. You can scroll down to the bottom
for all the appropriate disclosures as well. Remember past performance
is not indicative of future results, so let's dive into it.
The biggest of them all is the longest government shutdown
that has taken place in history, forty three days of
(05:08):
battling back and forth, you know, and it's reopened for
now because this is basically somewhat temporary and a stop
gap funding bill was passed signed by the President middle
of this week and to be battled again mainly on
(05:32):
the healthcare front come January thirtieth, So not completely over,
but over for now. So what did it? Do?
Speaker 1 (05:43):
You know?
Speaker 2 (05:43):
There was a lot of fear. Prior to the government shutdown,
John and I both talked about in previous episodes of
what it's going to do to the economy, what it's
going to do to the stock market, the stock market
might crash, so on and so forth, and what we
saw the results of that kind of unsurprisingly, because we've
had other government shutdowns, this is not the first. This
(06:04):
is the longest of them all, but it's not the first.
Is not the government, I'm sorry. The market has been very,
very resilient. We've actually hit all time highs during the
government shutdown. Part of that is because of catalyst of
we've had some anticipation and had some fed rate cuts
(06:26):
from the Federal Reserve. The other is we've had great
earnings so far. We're not completely through the earning season,
but we've had some good earnings reportings, companies meeting and
exceeding their expectations, not all but a lot of the
important ones. AI euphoria has come back very very strong,
especially after the big dip in April and May of
(06:49):
this year, and so that all helped to fuel the
resilience of the stock market and then climbing back up
again and hitting some of the all time highs. The
initial news of the government shut down coming to an
end did help bolster the market and the beginning of
the week when we saw stocks go up initially, but
(07:11):
then what it actually got signed you know, Wednesday's futures,
and then Thursday the market had started selling off, especially
the tech the NASDAC right, the tech sector, which is
a big component of the overall indices. SMP five hundred
represents about thirty four percent of the waiting of the
(07:31):
s and P five hundred some of the handful of
big tech names in there. So we'll see what happens,
you know, to for the rest of the year. Typically,
right now we're getting close to what's called the Santa
Claus rally, or we're getting into the holiday season, and
with that and the height of spirits along the holiday
(07:52):
season comes usually a ramp up in the stock market,
and more times than not we'll get a boost in
and gains in the stock market that lasts, you know,
pretty much December, kind of the back half December and
drags on into the beginning of January. Did we have
that earlier on in the year. Is there still going
(08:13):
to be a Santa Claus rally or did we have
an early Santa Claus rally and now the market is
kind of digesting and maybe have some consolidation here. We'll
see what happens. You know, one of the interesting things
that were anticipating is does the economic information and indicators
and data that was supposed to come out while the
(08:35):
government was shut down, does it come out now? And
does it give enough data for the Federal Reserve, which
will be coming up in another meeting in December, to
potentially have another rake cut, although recently those bets have
been dropping. The probability from what the markets are telling
(08:56):
us right now of a rake cut has now dropped
down fifty percent or before it was very very high
odds that we're going to have another quarter percent quarter
percent rate cut come December, which would mark the third
rate cut for this year. So we'll see what happens
on that front. You know, it's really going to be
(09:16):
dependent upon how much more data and if we get
some of that missing data during the government shutdown. But
let's dive dive in more of the shutdown. We already
know what's happened in the stock market during the shutdown,
very very resilient. We'll see if there's any drawback or
pullback that continues on from the aftermath of that, but
(09:38):
just from some of the notes that I have here
from the shutdown, so now it's been a stop gap. Well,
let's be to be determined what happens after January thirtieth,
longest shutdown in US history. The bill basically reverses firings,
guarantees backpay for federal workers, restores key programs like the
(10:00):
Food Assistants, a snap programs, and agriculture funding. But the
short term fix really sets up another standoff more on
the healthcare front, and which was a big battle between
the two sides, two parties, Democrats and Republicans. So we'll
see that might be a bigger standoff come January thirtieth,
(10:21):
hopefully not. Trump came out and said that it hurt
the economy to the tune of one point five trillion dollars.
I have not digested the data to see if that
a legitimate figure or not, but if so, that is
a pretty big figure of how it hurt the economy.
How is it going to impact Q four right this
last quarter of economic indicators and data, looks like it
(10:48):
will have an impact on GDP, which is a measurement
of how well our economy is doing. We think it's
going to be short lived, of course, unless come January
thirtieth is going to be you know, another fire and
long drawn out or another shutdown, so on and so forth.
So hopefully not. And again, you know, the core dispute
(11:09):
between the Democrats and the Republicans was Affordable Care Act
tax credits. The Democrats basically were warning that millions could
lose coverage and separate vote promise in mid December, so
you know, to be continued, we'll see how that unfolds.
So far, Mark has been resilient. We think there's still
(11:31):
growth to be had, albeit not a smooth ride. This
is why we've we've really emphasized on the importance you know,
both John and I on you know, taking a look
at your overall portfolio, because what does this really mean?
It gives us pause to say, Okay, we've had a
great run up in the market so far. We have
all these different things happening and you know, the economy
(11:53):
in the world, whether it's global conflicts or uh, you know,
political conflicts that are happening in our in our country
that are causing or or making some potential disruptions to
overall economy all there as well as maybe impacting the
stock market. So far, it's been resilient. We've been hitting
all time highs throughout the year. Biggest disruption has been
(12:16):
in April and May when there's been a tech sell
off that's dragged a lot of the market down. But
now we're beyond that. Earnings has continued to come in
great with companies as far as profits, and that is
really the mother's milk, as we've said in the past,
to the overall economy. The other is consumer spending. You know,
(12:36):
we'll get a good glimpse of that come the holidays,
right Black Friday, Christmas, and we'll get a good, good
snapshot after the holidays of how much consumers are still
spending or if they are in fact starting to pull back.
Last week's episode, I mentioned that we've been seeing on
the lower income segmentation of our nation that delinquencies have
(13:02):
been increasing as far as credit cards and auto loans.
So that is a little bit of a cautionary flag.
Does that continue to creep up, and does it, you know,
creep into or start bleeding into more than just the
lower income segments of our overall nation, the other part
of the government shut down, and really how many how
(13:24):
many did it really impact? Really forty two million Americans
regarding uh, you know snap benefit delays. Thats how many
people it impacted. And so how does that impact their
future spending, especially during the holidays, you know, do they
pull back from that or not? And does it does
it hurt the overall consumer spending? Again, big things to
(13:46):
look at is we're coming to the end of the year.
How how does all this impact your portfolios your investments?
Is it time to rebalance look into other asset classifications?
You know, if you're too heavy and stocks, uh, too
heavy in bonds, you know, what are the other opportunities
out there? These are things that we've talked about in
(14:08):
the past episodes, really timely now that it's in the
end of the year. And also another subject matter is
tax loss harvesting. What's I'll talk about in our next
upcoming segment. What does that mean? How does that help
improve your overall mitigation of tax losses and your role
(14:29):
tax pitcher Coming into the end of the year. Just
at vi visconte my co host John Scambray is out
for the week, so it'll just be me. This week.
I talked a little bit before about the government shutdown,
how that has impacted us and the short term and
(14:51):
the resilience of the stock market kind of shrugging it
off its shoulders. The other thing that I wanted to
mention as well is housing affordability. That has been a
big thorn for a lot of people, especially since interest
rates have have come up from their historic lows and
(15:11):
housing prices has not been really impacted as everyone thought.
Once interest rates really shot up, that softened a bit,
but they're still pretty high, and it's hard for people,
especially starting out, you know, new family starting out to
try to go out there and buy their new first home.
(15:33):
So there's been a couple proposals of how can we
make it more affordable for people out there coming out
of the White House, And one of them is a
fifty year mortgage. The other is mortgage portability. Right, you
can take your existing mortgage and then poured it over
to a new house. So is that a good thing?
(15:55):
Is that a bad thing? How would that really impact everyone?
You know, breaking it down, if we focus on the
fifty year mortgage, first fifty year mortgage is just stretching
it out. So the typical mortgage out there is thirty
year fixed. You know, most people have a thirty year fix.
There's a lot of other different variations out there. People
(16:16):
can do a fifteen year if they want to pay
their house down faster or for affordability issues. Right now,
people if they're trying to get home, they can't, you know,
afford the thirty year fix, which is principal and interest,
and you know we're each payment every month. Portion of
that goes to principle. The other portion goes into interest.
(16:38):
And the way it's amortizer spread out over those thirty years,
more of it is front loaded on the interest side
of things, so the bank is getting their interest less
of it on the principle. As you move throughout the years,
more and more gets attributed more towards the principle than
the interest. So when you're stretching it out from thirty
to fifty years, that just takes a lot longer process
(17:01):
for the portion of the principle to start paying down
the amount of principle that you owe on your home,
which then in turn slows down the equity build up
of that property. Current solutions that people have been using
now you know, since interest rates have been moving up.
Of what I've been hearing and know of some people
(17:25):
as they've been doing interest only loans. You know, they
do these arm loans which have existed for for decades,
a five to one arm or a seven to one arm.
You know, what does that mean? It just means that
your interest rate is fixed for five years or seven
years if it's a seven to one arm, and then
that interest rate typically is a lower interest rate because
(17:46):
it's a shorter period of time that the bank is
guaranteeing for for that lending period, and then you're paying
interest only, so you're not paying the principal portion of it,
so you're so you have a lower payment. Now, if
that's not enough, then you know, maybe the fifty year
mortgage would make it more feasible. But then what does
(18:06):
that do in the long term? One, like I mentioned before,
you're not paying the principle down as much more of
it's going to be going towards the interest for a
longer period of time that the bank's going to be collecting.
The other is when you look at the sum, you know,
if you were to stay in that house and just
keep that fifty year mortgage, that's not too too common.
(18:28):
But if that's the case, you know, the overall math
from what I've seen just in articles and studies on
this so far, I mean it's it's real new, but
that means borrowers could pay another three hundred and thirty
five to four hundred thousand dollars on average more in
interest over the life of the loan. So if you
bought a house for you know, a million dollars or
(18:50):
seven hundred thousand dollars, you know, and you have that loan,
over the life of the loan, you're not paying off
just seven hundred thousand dollars. You've got a factory and
that interest. On top of that, you're actually paying a
lot more for the house. So the longer that you're
paying that interest to the bank, that bigger that final
tally lump sum that you actually paid for your house
is going to be. The other is mortgage portability. I
(19:16):
didn't dive too much into this, but the idea around
that is everyone who has bought a home or refinanced,
you know, maybe two three years ago and was able
to get in to these historical low rates. I did myself.
I was able to lock in a two point six
two five percent interest rate locked in for thirty years.
(19:38):
You know, when are we going to see that again?
Who knows? I think the only way we get to
see that again is whenever the next reception comes and
you know, the Feds have to act and interest rates
actually come down, and we'll see interest rates come down
from that point. But until then, you know, we're at
these higher interest rates. Albeit they've come down and hit
(19:58):
the fives, which over a long term history, that's actually
not too bad, you know, much better than where it
was in the sevenths, not too long ago. But you know,
what does that look like actually? And that's probably going
to be a little bit more complex situation. So if
(20:18):
I were to take my loan and my balance, decided
to move to a new house, and I would take
my existing balance, but let's say I buy, I upgrade,
I buy a bigger home, then I would have a
portion of my loan that would be locked in at
two point sixty five percent. But then I'd have to
get a secondary loan to fill in because maybe I
upgraded right, and then that would be at a higher
(20:40):
interest rate. So I'd have to calculate the blended rate
and figure out if that's really worth it or not.
I think the big thing of these two potential options
that's coming out of the White House and FHA is
what is this actually really do with affordability? Does it
make homes more affordable or does it just allow more
(21:03):
people to be able to buy homes? Now? I feel
that these two could be potential viable options, but then
really all it's doing is going to be increasing demand. Right,
So if right now you're looking at thirty year fixed
mortgage and you can't afford it, but then all of
a sudden, a fifty year mortgage is and a viable
(21:27):
as an actual option out there, and now you can
afford the house. You're going to go out there and
buy that house, that very same house that you were
looking at but just can't afford it. Now you can
afford it. Now you're going to go out there and
buy the house. Right, And so is everybody else that's
on the cusp that now all of a sudden they
can buy the house. So what is that going to do.
That's going to drive demand, and that's going to help
support the resilience in the housing market and probably keep
(21:49):
them afloat or increase housing prices. So I don't know
if that is going to be you know, it could
be a temporary fix, but then what does it do
in the long term. So that's the couple things out there.
And housing affordability. I think, you know, productivity and wages
which have recently been outpacing inflation that needs to continue.
(22:12):
I think that really would help, you know, create more affordability,
especially if these rates continue to come down to more
you know level they were at sevens now they're at
the kind of the high fives. You know, if they
get into the lower fives, maybe the high fours now
it becomes more feasible, and wages continue to outpace inflation.
(22:33):
Now we're starting to see something that's a little bit
more productive out there. I didn't I didn't mention that
we are certified portfolio managers, and what that means is
we've gone through a rigorous study work and testing. At
the time, it was affiliated with Columbia University out of
New York, and it focuses around portfolio construction and management
(22:59):
really in a nutshell, and John and I did that
in twenty eighteen, and you know, we continue to strive
to be students of the market. It's ever evolving and changing.
Every recession is different, you know, even though we have
a combined fifty years of experience, the you know, what's
(23:20):
going on today is different from what's what's gone on five, ten, fifteen,
twenty years ago. Investments that were available you know, a
decade ago or two decades ago, you know, are different
from what's available today. So everything is always evolving. That's
part of the reason why we decided to do the
CPM designation, you know, which is highly regarded. It allows
(23:43):
us to be you know, the other part of that
is allows us to be discretionary managers. What does that mean?
We are true fiduciaries. We are not commission based. We
are fee based only, and we like to earn our business.
We had a meeting with a new prospect hopefully client,
(24:03):
a great couple and they've done a great job, you know,
building up their net worth and assets. He's a business
owner running a very successful business. But they're coming close
to retirement and heavy heavy in cash has been kind
of nervous into investing in the market or different instruments
(24:27):
out there, and you know, for a lot of people
out there, you just you don't know what you don't
know you're only comfortable with what you know out there,
and so he's been managing most of it himself. And
so we had a very very good meeting and you know,
what we're able to do is you know, And he
had a question like how does this work? What does
this actually look like? You know, if this ends up
(24:50):
being a good fit and we want to hire you.
So breaking that down a little bit before I get
down into the AI data center boom, and what's been
going on with that and kind the pros and cons
is you know, plainly, you know. And that's a great
question because a lot of people, if they haven't worked
with a financial advisor or you know, affirm like ours,
(25:12):
you know, people sometimes overwhelming like it's too much, like
how does it work? And like I said before, it's
really it's a discovery meeting. First. It's getting to know you,
who you are, what's important to you and your family,
what your goals are, what you've done so far to
contribute to those goals, you know, And then we identify
other ay voids or missing gaps that we need to
(25:34):
fill and then put it into a plan and then
from there we can figure out, you know, how what
is the probability of you obtaining or reaching your financial
goals based off of what you have going on right now,
and if not, what are some of the other things
that are needing to be done between now and then
before you retire to get it so you have a
(25:55):
high high enough probability success that in retirement, you know,
whether it's twenty or thirty years in retirement or more,
that you'll have a high enough probability of success that
we're not having to worry about, Oh, we got to
start trimming down. You can't spend as much or you
know you're gonna end up running out of money fifteen
years into retirement, and so on and so forth. And
you don't get a really good picture of that perspective
(26:17):
until we actually going through the planning process. And that's
exactly what we did the other day with these prospects
that we met, and it gave them a clearer picture
and hopefully brought value to them, which I believe it did.
After that meeting, you know, to really give them perspective
of where they're at, what they're able to achieve, and
(26:38):
then also how to actually appropriate their assets instead of
cash money marketing and CDs have been paying pretty good,
but they've been coming down the past year and so,
you know, and that was one of the comments made was,
you know, I used to get four and five, you know,
but now it can go into the threes, and who knows.
If it continues a trend, then it's not attractive anymore.
(27:00):
It's very temperate short term. So how do you how
do you put something together where it can give you
the returns and at least, you know, meat, or beat
inflation and taxes because those those two things that are
that he wrote are purchasing power. Right, if you've got
one hundred thousand dollars set aside stashed in savings, and
savings isn't giving you much, right purchasing power over the dollar.
(27:22):
Whatever costs one hundred thousand dollars today, you know it's
going to cost a lot more two, three, five, ten
years from now because inflation and tax is just a
road that purchasing power away. So that's where we come
to work after the plan, and we put our portfolio
management skills to work to construct the overall custom portfolio of
(27:43):
different instruments out there to build something that's going to
take you from point to point B without taking any
unnecessary risk and that's really just of it. That's what
we enjoy doing. You can reach out to us if
there's any questions or if you want a no obligation consultation,
if maybe you haven't had a plan done, or maybe
you had a plan done but it's really old, it's
(28:03):
been a long time since you reviewed it. In this case,
you know, I asked the gentleman he had a sep
ira with a broker that he's had a relationship with
twenty years, but said he's he can count maybe on
one hand, how many times he's had a contact with him,
which is which is really sad. So if that's your
case too, feel free to reach out to us at
(28:25):
nine one six nine six seven thirty five hundred be
more than happy to have a discussion, you know, put
together a complimentary financial plan to see if you're on
track and if not, what are some of the things
that you can focus on to get on track. You know.
The other thing that I mentioned earlier on that I
didn't address was tax loss harvesting. That's a that's another
(28:48):
thing that we can do complimentary as well, is review
your overall portfolio and see if there's any tax loss
harvesting opportunities there. And all that means is that you
might have several different position in your portfolio and you're
gonna have some winners, you're gonna have some losers. Right.
But if you've had a pretty great year and you
had some capital gains and now you're worried about, oh no,
(29:09):
you know, next year when I do my taxes and
I have all these capital gains in my portfolio, my
taxable brokerage account, I'm at to pay taxes on, there
might be some losers in there right now that we
can capture some of those losses, you know, and replace
it with some other positions that could be more beneficial
for your overall portfolio and to add some difversification. But
(29:31):
then you're capturing some of the losses to offset some
of those gains. And that's what tax loss harvesting is doing,
is realizing, trying to realize and mitigate some of those
taxes to shrink your overall bill, your tax bill come
next year when you do your taxes, but you're not
giving up the gains, your overall gains and the performance
your portfolio. Right. If that's something that interests you, you
(29:54):
have questions or have no idea and you want us
to take a glance at your overall portfolio again, calls
fine one six nine six seven thirty five hundred. So
the AI data center boom, we've heard from some companies
out there, AMD Core, Weave, Microsoft on their growth potential
(30:18):
of AI. But then on the other side, we're also
hearing some of the bottlenecks, right because this all has
to come and John likes to talk about a lot energy.
Everything starts and stops with energy. You can't do anything.
I can't record this radio show, you can't see me
on YouTube, you can't turn on your computer, you can't
do any digital training DOCU signed, turn on the lights,
(30:41):
so on and so forth without energy. And what we
know is that the AI and the data centers are
going to be consuming a ton of energy. But do
we have the infrastructure and what does that look like?
So did a little bit of digging out there to see,
you know what it implies kind of what if some
(31:02):
of these tech companies are talking about as far as
what their projection of growth of how fast this is
going to grow? The AI AI data center boom, But
then also what the projections are on the other side
of infrastructure, what are what are the roadblocks out there?
So a m D expects AA data center revenue to
(31:23):
grow eighty percent annually for the next three to five years.
That's huge. But infrastructure Coreweave and Microsoft cited construction and
power delays as the key bottlenecks and really that's kind
of pushing back the deployment of the timelines and can
in the and can slow you know, the near term
(31:44):
AI capacity expansion and the build out of these AA
data AI data centers. Electricity is a big proponent of this,
right and we've seen a lot of companies out there.
We have some of these energy companies and utility companies
within our core equity portfolio that I've done very well
both on the performance side but then also paying paying
(32:06):
some healthy dividends out there. You know, Duke Energy, ever Source,
There's a there's a whole list of out there. And
then data centers have shot up quite a bit, but
you know, have they got ahead of their skis? Are
they able to keep up with this projected growth or
do these bottlenecks and headwinds come into play where it
(32:30):
starts really slowing the slowing it down enough where these
projected growth numbers out there don't come to fruition and
then it could take it, you know, have an impact
on the orld stock prices of some of these stocks
out there, especially you know someone's out there like Western
Digital Palanteer, which have been hot ones recently this year.
I'll talk more about that. We'll digest more of some
(32:52):
of the bottlenecks, headwinds, some of the really lofty innovative
solutions of where else we can get energy outside of
thinking out of the thinking outside the box. You're listening
to the wise money guys just at Visconti. Co host
John scambrays out for this week, most likely we'll be
back next week. We are one source Wealth Management, certified
(33:16):
portfolio managers with a combined fifty years of experience. Reach
out to us. You have a question or concern with
your portfolios investment strategy. Maybe you've had a financial plan
but it's been years since you reviewed it. Maybe you
don't have a financial plan at all. Feel free to
reach out to us at nine to one six nine
(33:37):
to six, seven thirty five hundred. Our office manager, Kathy,
you'd be moren't happy to put you down on our
calendar so we can have a complementary consultation and put
together a complmary financial plan to make sure that you're
on track. Also to see if there's any opportunities like
had mentioned before for a year, if there's any tax
(34:01):
loss harvesting opportunities, and make sure you're starting off on
the right foot in twenty twenty six. So we've had
to recap quite a bit of what I talked about
so far on the show. Government shutdown, which has been
a huge you know, thrown on people's side. It's been
a big focus. It's the longest lasting government shut down
(34:24):
forty three days. It's been a stopgap funding bill. So
now it kind of puts us in reprieve up until
January thirtieth, until we revisit some of these things again.
We have the Federal Reserve that is going to be
meeting again in December, and you know, for another potential
rate cut, although those mark the market's betting, you know,
(34:47):
or the odds the market has put out there has
been declining. It's now fifty percent odds that the Feds
are going to cut another quarter point as they did
the last two sessions. And do we some of this
economic data that we missed out on because of the
government shutdown. You know, if not, how does the Federal
(35:08):
Reserve digest that and come to a solution or you know,
figure out what they need to do if they need
to cut rates or not with some of the lack
of data out there. We talked about housing affordability. A
couple of the proposed solutions that are coming out of
the White House, which is a fifty year mortgage, stretching
(35:30):
it out, you know, from the typical thirty years to
fifty years. The other is mortgage portability, so taking your
existing mortgage. You know, a person like myself, you know,
I was able to lock in a couple of year
a few years back actually to two point six two
five low mortgage rate. I'm never touching that thing, which
(35:51):
means I'm never moving. But then if it's portable, do
I change my mind and say, well, yeah, I could
move because now I have, you know, my mortgage at
a lower interest rate. The other thing is that can
be very very complex because then maybe if you have
a bigger mortgage, then you have to get a secondary
mortgage with a higher interest rate. How do the banks
(36:12):
manage that? So on and so forth. The last thing
I was talking about and I'll finish up on wrap
up on this last segment is the AI data center
broom boom. You know, we've had AI euphoria come back
into the stock market, which has driven some of these
tech names up, help to drag up the overall market
as well, and we're kind of getting that narrow breadth.
(36:34):
What I mean by that is you have a handful
of names that are comprised of a big waiting of
the overall stock market, and you know, if they do well,
the market is doing pretty well. If they do bad,
then it kind of drags the rest of the market down.
The other side of it is the AA data center
and so there's been a lot of growth in that area,
more expected growth in the next three to five years.
(36:55):
AMDs projecting eighty percent growth the next three to five
years for revenue growth in the AI data center. You know,
some of the names out there, Pallanteer, Western Digital have
had massive gains this year, you know, triple digits where
people have been seeing you know, doubles and triples. Western
Digital actually is in our core portfolio which has seen
(37:17):
some healthy gains. If you want to reach out to
us and learn more about our core portfolio that some
of our clients are in, feel free again to reach
out to us to nine six nine six seven thirty
five hundred. The construction spending of AI data center just
some of my notes here hit a record four point
(37:39):
two billion a month. It's up four hundred year over year.
It's huge. But the electricity stortages and permitting delays sometimes
at the five years. Okay, they've been constraining that growth.
So that's the big what if that's the that's the hurdle,
that's a huge roadblock of what if the infrastructure, you know,
(38:02):
the energy infrastructure can't keep up with all this growth
of trying to build out these AI data centers. How
does that really impact one these stocks, these companies, but
then just the AI companies themselves right in video A
m D, Micron, IBM is getting to AI, Apple, so
(38:24):
on and so forth. Does it kind of pour some
cold water on this AI euphoria. The other is, you know,
every state is different, So concentration in states like Virginia,
Texas and California are straining local grids, They're raising power costs.
So how does the public respond to that? You know,
(38:44):
if you if if they're demanding more, and then they're
raising costs that all of us have to share. How
does that what does that look like? And is the
public going to be for that? I mean, we all
would like to have advancement and technology and growth, and
it's kind of exciting to think about of this kind
of whole AI boom right, kind of like the Internet
(39:05):
boom of the nineties and what that did for us.
Some of it's exciting, some of it a little bit scary.
But if they can't keep up or the costs you know,
continue to rise, especially for us here in California, I mean,
PGNE is insane as far as the cost, and especially
when you compare PGN to some of the other local
(39:27):
municipalities like I'm on SMUD Sacramento Municipal Mutility and they're
much much cheaper per kilowatt an hour as far as
cost or charge than PGENE is. But those who are
all on PGNE you know or you know, do SMUD
continue to raise it, which they have do other local
(39:51):
municipalities and power companies and strate do they continue to
raise it? And then what is that? How does that
impact the local you know, public? And then do they
start retaliating retaliating towards that that could be a roadblock
as well. So what's what's some of the ideas out
there from some of these tech companies. One of them
which I just learned about, which is pretty interesting, Google
(40:14):
is exploring an alternative which is called Project Project Suncatcher. Essentially,
it's a space based solar data center. So it's a
concept whether in space and they put solar panels in space,
which you can get eight times more power than solar
on Earth. And so that is an idea, and that
(40:36):
could be something that could be cost cutting and competitive
by the mid twenty thirties. So great idea, but it
takes a long time for it to build out again,
you know, the shorter term is what do we do
with our existing utility infrastructure when it comes to electricity?
(40:58):
And then everything that powers will liketricity. Right, we're conscious,
we've been for a long long time conscious of you know,
how utility companies, electric companies produce their energy, right, Coal
fire power plants is kind of you know, shunned upon.
So then where else do you go? Do nuclear power
(41:21):
plants explode all over the place, we'll see, But that
all takes time to build out, and is it fast
enough to fill that gap with all these growth projections
to support this AI boom and to really justify some
of these high prices and these tech names. And that
(41:42):
might be the why we're might be why we're seeing
some of the selloff in tech names because of the
valuations are pretty high. It's also going to be very
you know, it's good for the market to have some
of these breathers or pullbacks, albeit instead of just straight
up we've talked a lot about that and previous episodes.
It all boils down to you, how does this impact
(42:04):
you specifically your portfolio? Are these things that you need
to be paying attention to? Does it impact you and
your portfolio, your investments? You know, to help you reach
your goals, financial goals and dreams out there, those are
the things that we help you with, you know, specifically
on a one on one basis. If you're not receiving
that help or you just don't know you've been trying
(42:26):
to manage it on your own, those are the things
that you can reach out to us. Call us at
nine one six nine sixty seven thirty five hundred for
a complimentary, no obligation consultation. We'll put together a financial
plan and see if you're on track and if not,
what needs to happen to get you on track to
get you to your goals. You've been listening to the
Wise Money guys. I'm just up to Visconte. Hope you
(42:48):
guys have a great weekend and 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. My name is Giuseppe Visconti.
My co host John Scambray is not with us for
this week. We are One Source Wealth Management. We help families,
individuals and small businesses help grow their assets to meet
their financial goals. A lot of our clientele is pre
(00:35):
retireings and retirement community, but we help all walks of
life out there, essentially from the start to finish. And
what that looks like is really sitting down discovering more
and learning more about who you are, a little about
about your past, your current situation, more importantly, what you
want to achieve in your future. Everybody has different financial goals,
(00:57):
but different timelines, different risk tolerances, so on and so forth,
and through that discovery process, what we do is we
build out a financial plan. We see that as the
blueprint or the roadmap, albeit to be the foundation of
your overall journey, to help you get from point A
to point B and facilitating and help guide you to
(01:22):
achieve all the financial goals that are important to you
and your family. Once we have that established, then from
that point we look at the different assets that you
have to contribute towards your goals and figure out how
to best position them and invest them in such a
manner that makes sense to you, in a custom fashion
that helps to get you from point A to point
(01:44):
B and achieve your financial goals. We have a combined
experience of about fifty years, John over thirty and me
working on about twenty. I've worked with a lot of big,
large institutions and firms out there between the both of
us and really enjoy what we do and learning all
(02:05):
the different stories from all the different clients that we've
worked with throughout the years. More information on us and
our business, you can reach out either to us nine
one six nine six seven thirty five hundred. You can
also view us on our website which is wisemoneyguys dot
com or we have a lot of different information about us,
(02:30):
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retirement and anything else out there, and then our disclosures
of course, all the way at the bottom you can
see us and put a face to the name on
our YouTube channel and just search us on YouTube the
Wise Money Guys, or you can search us by name
(02:52):
John Scambray and Joseepa Visconti. You can also reach out
to us if there's particular question or topic that you'd
like for us to talk about or either connect with
you individually, and that's that question at wismoneyguys dot com.
Of course, you can also call us as I mentioned
before at nine one six nine six seven thirty five
(03:16):
hundred a lot of information. The biggest of them all
is the government shut down. Also, we have housing affordability innovations,
a couple potential solutions to help resolve the affordability issue
for housing. And then I'll get into the AI data
(03:38):
Center boom, the pros and cons and some of the
bottlenecks that we've been hearing from some of the tech
companies that have been exploring the potential growth, but then
also what needs to have happen and with that growth
if it's going a little bit too fast. Again, my
name is Juseppe Visconti, the Wise Money Guy Guys. You
(04:00):
can find us on Wise money guys dot com. You
can also find us on YouTube and search the Wise
Money Guys or John Scambray and Joseppi Visconti, where we
upload our videos for the Wise Money Guys show and
you can see our pretty faces to put a face
(04:22):
to the voice. You can also enter a question if
there's a topic or specific question that you have and
reach out to us directly at the question at wisemoneyguys
dot com. We have more information and handy tools and
calculators on our website which I mentioned, which is just
(04:43):
wisemoneyguys dot com. You can scroll down to the bottom
for all the appropriate disclosures as well. Remember past performance
is not indicative of future results, so let's dive into it.
The biggest of them all is the longest government shutdown
that has taken place in history, forty three days of
(05:08):
battling back and forth, you know, and it's reopened for
now because this is basically somewhat temporary and a stop
gap funding bill was passed signed by the President middle
of this week and to be battled again mainly on
(05:32):
the healthcare front come January thirtieth, So not completely over,
but over for now. So what did it? Do?
Speaker 1 (05:43):
You know?
Speaker 2 (05:43):
There was a lot of fear. Prior to the government shutdown,
John and I both talked about in previous episodes of
what it's going to do to the economy, what it's
going to do to the stock market, the stock market
might crash, so on and so forth, and what we
saw the results of that kind of unsurprisingly, because we've
had other government shutdowns, this is not the first. This
(06:04):
is the longest of them all, but it's not the first.
Is not the government, I'm sorry. The market has been very,
very resilient. We've actually hit all time highs during the
government shutdown. Part of that is because of catalyst of
we've had some anticipation and had some fed rate cuts
(06:26):
from the Federal Reserve. The other is we've had great
earnings so far. We're not completely through the earning season,
but we've had some good earnings reportings, companies meeting and
exceeding their expectations, not all but a lot of the
important ones. AI euphoria has come back very very strong,
especially after the big dip in April and May of
(06:49):
this year, and so that all helped to fuel the
resilience of the stock market and then climbing back up
again and hitting some of the all time highs. The
initial news of the government shut down coming to an
end did help bolster the market and the beginning of
the week when we saw stocks go up initially, but
(07:11):
then what it actually got signed you know, Wednesday's futures,
and then Thursday the market had started selling off, especially
the tech the NASDAC right, the tech sector, which is
a big component of the overall indices. SMP five hundred
represents about thirty four percent of the waiting of the
(07:31):
s and P five hundred some of the handful of
big tech names in there. So we'll see what happens,
you know, to for the rest of the year. Typically,
right now we're getting close to what's called the Santa
Claus rally, or we're getting into the holiday season, and
with that and the height of spirits along the holiday
(07:52):
season comes usually a ramp up in the stock market,
and more times than not we'll get a boost in
and gains in the stock market that lasts, you know,
pretty much December, kind of the back half December and
drags on into the beginning of January. Did we have
that earlier on in the year. Is there still going
(08:13):
to be a Santa Claus rally or did we have
an early Santa Claus rally and now the market is
kind of digesting and maybe have some consolidation here. We'll
see what happens. You know, one of the interesting things
that were anticipating is does the economic information and indicators
and data that was supposed to come out while the
(08:35):
government was shut down, does it come out now? And
does it give enough data for the Federal Reserve, which
will be coming up in another meeting in December, to
potentially have another rake cut, although recently those bets have
been dropping. The probability from what the markets are telling
(08:56):
us right now of a rake cut has now dropped
down fifty percent or before it was very very high
odds that we're going to have another quarter percent quarter
percent rate cut come December, which would mark the third
rate cut for this year. So we'll see what happens
on that front. You know, it's really going to be
(09:16):
dependent upon how much more data and if we get
some of that missing data during the government shutdown. But
let's dive dive in more of the shutdown. We already
know what's happened in the stock market during the shutdown,
very very resilient. We'll see if there's any drawback or
pullback that continues on from the aftermath of that, but
(09:38):
just from some of the notes that I have here
from the shutdown, so now it's been a stop gap. Well,
let's be to be determined what happens after January thirtieth,
longest shutdown in US history. The bill basically reverses firings,
guarantees backpay for federal workers, restores key programs like the
(10:00):
Food Assistants, a snap programs, and agriculture funding. But the
short term fix really sets up another standoff more on
the healthcare front, and which was a big battle between
the two sides, two parties, Democrats and Republicans. So we'll
see that might be a bigger standoff come January thirtieth,
(10:21):
hopefully not. Trump came out and said that it hurt
the economy to the tune of one point five trillion dollars.
I have not digested the data to see if that
a legitimate figure or not, but if so, that is
a pretty big figure of how it hurt the economy.
How is it going to impact Q four right this
last quarter of economic indicators and data, looks like it
(10:48):
will have an impact on GDP, which is a measurement
of how well our economy is doing. We think it's
going to be short lived, of course, unless come January
thirtieth is going to be you know, another fire and
long drawn out or another shutdown, so on and so forth.
So hopefully not. And again, you know, the core dispute
(11:09):
between the Democrats and the Republicans was Affordable Care Act
tax credits. The Democrats basically were warning that millions could
lose coverage and separate vote promise in mid December, so
you know, to be continued, we'll see how that unfolds.
So far, Mark has been resilient. We think there's still
(11:31):
growth to be had, albeit not a smooth ride. This
is why we've we've really emphasized on the importance you know,
both John and I on you know, taking a look
at your overall portfolio, because what does this really mean?
It gives us pause to say, Okay, we've had a
great run up in the market so far. We have
all these different things happening and you know, the economy
(11:53):
in the world, whether it's global conflicts or uh, you know,
political conflicts that are happening in our in our country
that are causing or or making some potential disruptions to
overall economy all there as well as maybe impacting the
stock market. So far, it's been resilient. We've been hitting
all time highs throughout the year. Biggest disruption has been
(12:16):
in April and May when there's been a tech sell
off that's dragged a lot of the market down. But
now we're beyond that. Earnings has continued to come in
great with companies as far as profits, and that is
really the mother's milk, as we've said in the past,
to the overall economy. The other is consumer spending. You know,
(12:36):
we'll get a good glimpse of that come the holidays,
right Black Friday, Christmas, and we'll get a good, good
snapshot after the holidays of how much consumers are still
spending or if they are in fact starting to pull back.
Last week's episode, I mentioned that we've been seeing on
the lower income segmentation of our nation that delinquencies have
(13:02):
been increasing as far as credit cards and auto loans.
So that is a little bit of a cautionary flag.
Does that continue to creep up, and does it, you know,
creep into or start bleeding into more than just the
lower income segments of our overall nation, the other part
of the government shut down, and really how many how
(13:24):
many did it really impact? Really forty two million Americans
regarding uh, you know snap benefit delays. Thats how many
people it impacted. And so how does that impact their
future spending, especially during the holidays, you know, do they
pull back from that or not? And does it does
it hurt the overall consumer spending? Again, big things to
(13:46):
look at is we're coming to the end of the year.
How how does all this impact your portfolios your investments?
Is it time to rebalance look into other asset classifications?
You know, if you're too heavy and stocks, uh, too
heavy in bonds, you know, what are the other opportunities
out there? These are things that we've talked about in
(14:08):
the past episodes, really timely now that it's in the
end of the year. And also another subject matter is
tax loss harvesting. What's I'll talk about in our next
upcoming segment. What does that mean? How does that help
improve your overall mitigation of tax losses and your role
(14:29):
tax pitcher Coming into the end of the year. Just
at vi visconte my co host John Scambray is out
for the week, so it'll just be me. This week.
I talked a little bit before about the government shutdown,
how that has impacted us and the short term and
(14:51):
the resilience of the stock market kind of shrugging it
off its shoulders. The other thing that I wanted to
mention as well is housing affordability. That has been a
big thorn for a lot of people, especially since interest
rates have have come up from their historic lows and
(15:11):
housing prices has not been really impacted as everyone thought.
Once interest rates really shot up, that softened a bit,
but they're still pretty high, and it's hard for people,
especially starting out, you know, new family starting out to
try to go out there and buy their new first home.
(15:33):
So there's been a couple proposals of how can we
make it more affordable for people out there coming out
of the White House, And one of them is a
fifty year mortgage. The other is mortgage portability. Right, you
can take your existing mortgage and then poured it over
to a new house. So is that a good thing?
(15:55):
Is that a bad thing? How would that really impact everyone?
You know, breaking it down, if we focus on the
fifty year mortgage, first fifty year mortgage is just stretching
it out. So the typical mortgage out there is thirty
year fixed. You know, most people have a thirty year fix.
There's a lot of other different variations out there. People
(16:16):
can do a fifteen year if they want to pay
their house down faster or for affordability issues. Right now,
people if they're trying to get home, they can't, you know,
afford the thirty year fix, which is principal and interest,
and you know we're each payment every month. Portion of
that goes to principle. The other portion goes into interest.
(16:38):
And the way it's amortizer spread out over those thirty years,
more of it is front loaded on the interest side
of things, so the bank is getting their interest less
of it on the principle. As you move throughout the years,
more and more gets attributed more towards the principle than
the interest. So when you're stretching it out from thirty
to fifty years, that just takes a lot longer process
(17:01):
for the portion of the principle to start paying down
the amount of principle that you owe on your home,
which then in turn slows down the equity build up
of that property. Current solutions that people have been using
now you know, since interest rates have been moving up.
Of what I've been hearing and know of some people
(17:25):
as they've been doing interest only loans. You know, they
do these arm loans which have existed for for decades,
a five to one arm or a seven to one arm.
You know, what does that mean? It just means that
your interest rate is fixed for five years or seven
years if it's a seven to one arm, and then
that interest rate typically is a lower interest rate because
(17:46):
it's a shorter period of time that the bank is
guaranteeing for for that lending period, and then you're paying
interest only, so you're not paying the principal portion of it,
so you're so you have a lower payment. Now, if
that's not enough, then you know, maybe the fifty year
mortgage would make it more feasible. But then what does
(18:06):
that do in the long term? One, like I mentioned before,
you're not paying the principle down as much more of
it's going to be going towards the interest for a
longer period of time that the bank's going to be collecting.
The other is when you look at the sum, you know,
if you were to stay in that house and just
keep that fifty year mortgage, that's not too too common.
(18:28):
But if that's the case, you know, the overall math
from what I've seen just in articles and studies on
this so far, I mean it's it's real new, but
that means borrowers could pay another three hundred and thirty
five to four hundred thousand dollars on average more in
interest over the life of the loan. So if you
bought a house for you know, a million dollars or
(18:50):
seven hundred thousand dollars, you know, and you have that loan,
over the life of the loan, you're not paying off
just seven hundred thousand dollars. You've got a factory and
that interest. On top of that, you're actually paying a
lot more for the house. So the longer that you're
paying that interest to the bank, that bigger that final
tally lump sum that you actually paid for your house
is going to be. The other is mortgage portability. I
(19:16):
didn't dive too much into this, but the idea around
that is everyone who has bought a home or refinanced,
you know, maybe two three years ago and was able
to get in to these historical low rates. I did myself.
I was able to lock in a two point six
two five percent interest rate locked in for thirty years.
(19:38):
You know, when are we going to see that again?
Who knows? I think the only way we get to
see that again is whenever the next reception comes and
you know, the Feds have to act and interest rates
actually come down, and we'll see interest rates come down
from that point. But until then, you know, we're at
these higher interest rates. Albeit they've come down and hit
(19:58):
the fives, which over a long term history, that's actually
not too bad, you know, much better than where it
was in the sevenths, not too long ago. But you know,
what does that look like actually? And that's probably going
to be a little bit more complex situation. So if
(20:18):
I were to take my loan and my balance, decided
to move to a new house, and I would take
my existing balance, but let's say I buy, I upgrade,
I buy a bigger home, then I would have a
portion of my loan that would be locked in at
two point sixty five percent. But then I'd have to
get a secondary loan to fill in because maybe I
upgraded right, and then that would be at a higher
(20:40):
interest rate. So I'd have to calculate the blended rate
and figure out if that's really worth it or not.
I think the big thing of these two potential options
that's coming out of the White House and FHA is
what is this actually really do with affordability? Does it
make homes more affordable or does it just allow more
(21:03):
people to be able to buy homes? Now? I feel
that these two could be potential viable options, but then
really all it's doing is going to be increasing demand. Right,
So if right now you're looking at thirty year fixed
mortgage and you can't afford it, but then all of
a sudden, a fifty year mortgage is and a viable
(21:27):
as an actual option out there, and now you can
afford the house. You're going to go out there and
buy that house, that very same house that you were
looking at but just can't afford it. Now you can
afford it. Now you're going to go out there and
buy the house. Right, And so is everybody else that's
on the cusp that now all of a sudden they
can buy the house. So what is that going to do.
That's going to drive demand, and that's going to help
support the resilience in the housing market and probably keep
(21:49):
them afloat or increase housing prices. So I don't know
if that is going to be you know, it could
be a temporary fix, but then what does it do
in the long term. So that's the couple things out there.
And housing affordability. I think, you know, productivity and wages
which have recently been outpacing inflation that needs to continue.
(22:12):
I think that really would help, you know, create more affordability,
especially if these rates continue to come down to more
you know level they were at sevens now they're at
the kind of the high fives. You know, if they
get into the lower fives, maybe the high fours now
it becomes more feasible, and wages continue to outpace inflation.
(22:33):
Now we're starting to see something that's a little bit
more productive out there. I didn't I didn't mention that
we are certified portfolio managers, and what that means is
we've gone through a rigorous study work and testing. At
the time, it was affiliated with Columbia University out of
New York, and it focuses around portfolio construction and management
(22:59):
really in a nutshell, and John and I did that
in twenty eighteen, and you know, we continue to strive
to be students of the market. It's ever evolving and changing.
Every recession is different, you know, even though we have
a combined fifty years of experience, the you know, what's
(23:20):
going on today is different from what's what's gone on five, ten, fifteen,
twenty years ago. Investments that were available you know, a
decade ago or two decades ago, you know, are different
from what's available today. So everything is always evolving. That's
part of the reason why we decided to do the
CPM designation, you know, which is highly regarded. It allows
(23:43):
us to be you know, the other part of that
is allows us to be discretionary managers. What does that mean?
We are true fiduciaries. We are not commission based. We
are fee based only, and we like to earn our business.
We had a meeting with a new prospect hopefully client,
(24:03):
a great couple and they've done a great job, you know,
building up their net worth and assets. He's a business
owner running a very successful business. But they're coming close
to retirement and heavy heavy in cash has been kind
of nervous into investing in the market or different instruments
(24:27):
out there, and you know, for a lot of people
out there, you just you don't know what you don't
know you're only comfortable with what you know out there,
and so he's been managing most of it himself. And
so we had a very very good meeting and you know,
what we're able to do is you know, And he
had a question like how does this work? What does
this actually look like? You know, if this ends up
(24:50):
being a good fit and we want to hire you.
So breaking that down a little bit before I get
down into the AI data center boom, and what's been
going on with that and kind the pros and cons
is you know, plainly, you know. And that's a great
question because a lot of people, if they haven't worked
with a financial advisor or you know, affirm like ours,
(25:12):
you know, people sometimes overwhelming like it's too much, like
how does it work? And like I said before, it's
really it's a discovery meeting. First. It's getting to know you,
who you are, what's important to you and your family,
what your goals are, what you've done so far to
contribute to those goals, you know, And then we identify
other ay voids or missing gaps that we need to
(25:34):
fill and then put it into a plan and then
from there we can figure out, you know, how what
is the probability of you obtaining or reaching your financial
goals based off of what you have going on right now,
and if not, what are some of the other things
that are needing to be done between now and then
before you retire to get it so you have a
(25:55):
high high enough probability success that in retirement, you know,
whether it's twenty or thirty years in retirement or more,
that you'll have a high enough probability of success that
we're not having to worry about, Oh, we got to
start trimming down. You can't spend as much or you
know you're gonna end up running out of money fifteen
years into retirement, and so on and so forth. And
you don't get a really good picture of that perspective
(26:17):
until we actually going through the planning process. And that's
exactly what we did the other day with these prospects
that we met, and it gave them a clearer picture
and hopefully brought value to them, which I believe it did.
After that meeting, you know, to really give them perspective
of where they're at, what they're able to achieve, and
(26:38):
then also how to actually appropriate their assets instead of
cash money marketing and CDs have been paying pretty good,
but they've been coming down the past year and so,
you know, and that was one of the comments made was,
you know, I used to get four and five, you know,
but now it can go into the threes, and who knows.
If it continues a trend, then it's not attractive anymore.
(27:00):
It's very temperate short term. So how do you how
do you put something together where it can give you
the returns and at least, you know, meat, or beat
inflation and taxes because those those two things that are
that he wrote are purchasing power. Right, if you've got
one hundred thousand dollars set aside stashed in savings, and
savings isn't giving you much, right purchasing power over the dollar.
(27:22):
Whatever costs one hundred thousand dollars today, you know it's
going to cost a lot more two, three, five, ten
years from now because inflation and tax is just a
road that purchasing power away. So that's where we come
to work after the plan, and we put our portfolio
management skills to work to construct the overall custom portfolio of
(27:43):
different instruments out there to build something that's going to
take you from point to point B without taking any
unnecessary risk and that's really just of it. That's what
we enjoy doing. You can reach out to us if
there's any questions or if you want a no obligation consultation,
if maybe you haven't had a plan done, or maybe
you had a plan done but it's really old, it's
(28:03):
been a long time since you reviewed it. In this case,
you know, I asked the gentleman he had a sep
ira with a broker that he's had a relationship with
twenty years, but said he's he can count maybe on
one hand, how many times he's had a contact with him,
which is which is really sad. So if that's your
case too, feel free to reach out to us at
(28:25):
nine one six nine six seven thirty five hundred be
more than happy to have a discussion, you know, put
together a complimentary financial plan to see if you're on
track and if not, what are some of the things
that you can focus on to get on track. You know.
The other thing that I mentioned earlier on that I
didn't address was tax loss harvesting. That's a that's another
(28:48):
thing that we can do complimentary as well, is review
your overall portfolio and see if there's any tax loss
harvesting opportunities there. And all that means is that you
might have several different position in your portfolio and you're
gonna have some winners, you're gonna have some losers. Right.
But if you've had a pretty great year and you
had some capital gains and now you're worried about, oh no,
(29:09):
you know, next year when I do my taxes and
I have all these capital gains in my portfolio, my
taxable brokerage account, I'm at to pay taxes on, there
might be some losers in there right now that we
can capture some of those losses, you know, and replace
it with some other positions that could be more beneficial
for your overall portfolio and to add some difversification. But
(29:31):
then you're capturing some of the losses to offset some
of those gains. And that's what tax loss harvesting is doing,
is realizing, trying to realize and mitigate some of those
taxes to shrink your overall bill, your tax bill come
next year when you do your taxes, but you're not
giving up the gains, your overall gains and the performance
your portfolio. Right. If that's something that interests you, you
(29:54):
have questions or have no idea and you want us
to take a glance at your overall portfolio again, calls
fine one six nine six seven thirty five hundred. So
the AI data center boom, we've heard from some companies
out there, AMD Core, Weave, Microsoft on their growth potential
(30:18):
of AI. But then on the other side, we're also
hearing some of the bottlenecks, right because this all has
to come and John likes to talk about a lot energy.
Everything starts and stops with energy. You can't do anything.
I can't record this radio show, you can't see me
on YouTube, you can't turn on your computer, you can't
do any digital training DOCU signed, turn on the lights,
(30:41):
so on and so forth without energy. And what we
know is that the AI and the data centers are
going to be consuming a ton of energy. But do
we have the infrastructure and what does that look like?
So did a little bit of digging out there to see,
you know what it implies kind of what if some
(31:02):
of these tech companies are talking about as far as
what their projection of growth of how fast this is
going to grow? The AI AI data center boom, But
then also what the projections are on the other side
of infrastructure, what are what are the roadblocks out there?
So a m D expects AA data center revenue to
(31:23):
grow eighty percent annually for the next three to five years.
That's huge. But infrastructure Coreweave and Microsoft cited construction and
power delays as the key bottlenecks and really that's kind
of pushing back the deployment of the timelines and can
in the and can slow you know, the near term
(31:44):
AI capacity expansion and the build out of these AA
data AI data centers. Electricity is a big proponent of this,
right and we've seen a lot of companies out there.
We have some of these energy companies and utility companies
within our core equity portfolio that I've done very well
both on the performance side but then also paying paying
(32:06):
some healthy dividends out there. You know, Duke Energy, ever Source,
There's a there's a whole list of out there. And
then data centers have shot up quite a bit, but
you know, have they got ahead of their skis? Are
they able to keep up with this projected growth or
do these bottlenecks and headwinds come into play where it
(32:30):
starts really slowing the slowing it down enough where these
projected growth numbers out there don't come to fruition and
then it could take it, you know, have an impact
on the orld stock prices of some of these stocks
out there, especially you know someone's out there like Western
Digital Palanteer, which have been hot ones recently this year.
I'll talk more about that. We'll digest more of some
(32:52):
of the bottlenecks, headwinds, some of the really lofty innovative
solutions of where else we can get energy outside of
thinking out of the thinking outside the box. You're listening
to the wise money guys just at Visconti. Co host
John scambrays out for this week, most likely we'll be
back next week. We are one source Wealth Management, certified
(33:16):
portfolio managers with a combined fifty years of experience. Reach
out to us. You have a question or concern with
your portfolios investment strategy. Maybe you've had a financial plan
but it's been years since you reviewed it. Maybe you
don't have a financial plan at all. Feel free to
reach out to us at nine to one six nine
(33:37):
to six, seven thirty five hundred. Our office manager, Kathy,
you'd be moren't happy to put you down on our
calendar so we can have a complementary consultation and put
together a complmary financial plan to make sure that you're
on track. Also to see if there's any opportunities like
had mentioned before for a year, if there's any tax
(34:01):
loss harvesting opportunities, and make sure you're starting off on
the right foot in twenty twenty six. So we've had
to recap quite a bit of what I talked about
so far on the show. Government shutdown, which has been
a huge you know, thrown on people's side. It's been
a big focus. It's the longest lasting government shut down
(34:24):
forty three days. It's been a stopgap funding bill. So
now it kind of puts us in reprieve up until
January thirtieth, until we revisit some of these things again.
We have the Federal Reserve that is going to be
meeting again in December, and you know, for another potential
rate cut, although those mark the market's betting, you know,
(34:47):
or the odds the market has put out there has
been declining. It's now fifty percent odds that the Feds
are going to cut another quarter point as they did
the last two sessions. And do we some of this
economic data that we missed out on because of the
government shutdown. You know, if not, how does the Federal
(35:08):
Reserve digest that and come to a solution or you know,
figure out what they need to do if they need
to cut rates or not with some of the lack
of data out there. We talked about housing affordability. A
couple of the proposed solutions that are coming out of
the White House, which is a fifty year mortgage, stretching
(35:30):
it out, you know, from the typical thirty years to
fifty years. The other is mortgage portability, so taking your
existing mortgage. You know, a person like myself, you know,
I was able to lock in a couple of year
a few years back actually to two point six two
five low mortgage rate. I'm never touching that thing, which
(35:51):
means I'm never moving. But then if it's portable, do
I change my mind and say, well, yeah, I could
move because now I have, you know, my mortgage at
a lower interest rate. The other thing is that can
be very very complex because then maybe if you have
a bigger mortgage, then you have to get a secondary
mortgage with a higher interest rate. How do the banks
(36:12):
manage that? So on and so forth. The last thing
I was talking about and I'll finish up on wrap
up on this last segment is the AI data center
broom boom. You know, we've had AI euphoria come back
into the stock market, which has driven some of these
tech names up, help to drag up the overall market
as well, and we're kind of getting that narrow breadth.
(36:34):
What I mean by that is you have a handful
of names that are comprised of a big waiting of
the overall stock market, and you know, if they do well,
the market is doing pretty well. If they do bad,
then it kind of drags the rest of the market down.
The other side of it is the AA data center
and so there's been a lot of growth in that area,
more expected growth in the next three to five years.
(36:55):
AMDs projecting eighty percent growth the next three to five
years for revenue growth in the AI data center. You know,
some of the names out there, Pallanteer, Western Digital have
had massive gains this year, you know, triple digits where
people have been seeing you know, doubles and triples. Western
Digital actually is in our core portfolio which has seen
(37:17):
some healthy gains. If you want to reach out to
us and learn more about our core portfolio that some
of our clients are in, feel free again to reach
out to us to nine six nine six seven thirty
five hundred. The construction spending of AI data center just
some of my notes here hit a record four point
(37:39):
two billion a month. It's up four hundred year over year.
It's huge. But the electricity stortages and permitting delays sometimes
at the five years. Okay, they've been constraining that growth.
So that's the big what if that's the that's the hurdle,
that's a huge roadblock of what if the infrastructure, you know,
(38:02):
the energy infrastructure can't keep up with all this growth
of trying to build out these AI data centers. How
does that really impact one these stocks, these companies, but
then just the AI companies themselves right in video A
m D, Micron, IBM is getting to AI, Apple, so
(38:24):
on and so forth. Does it kind of pour some
cold water on this AI euphoria. The other is, you know,
every state is different, So concentration in states like Virginia,
Texas and California are straining local grids, They're raising power costs.
So how does the public respond to that? You know,
(38:44):
if you if if they're demanding more, and then they're
raising costs that all of us have to share. How
does that what does that look like? And is the
public going to be for that? I mean, we all
would like to have advancement and technology and growth, and
it's kind of exciting to think about of this kind
of whole AI boom right, kind of like the Internet
(39:05):
boom of the nineties and what that did for us.
Some of it's exciting, some of it a little bit scary.
But if they can't keep up or the costs you know,
continue to rise, especially for us here in California, I mean,
PGNE is insane as far as the cost, and especially
when you compare PGN to some of the other local
(39:27):
municipalities like I'm on SMUD Sacramento Municipal Mutility and they're
much much cheaper per kilowatt an hour as far as
cost or charge than PGENE is. But those who are
all on PGNE you know or you know, do SMUD
continue to raise it, which they have do other local
(39:51):
municipalities and power companies and strate do they continue to
raise it? And then what is that? How does that
impact the local you know, public? And then do they
start retaliating retaliating towards that that could be a roadblock
as well. So what's what's some of the ideas out
there from some of these tech companies. One of them
which I just learned about, which is pretty interesting, Google
(40:14):
is exploring an alternative which is called Project Project Suncatcher. Essentially,
it's a space based solar data center. So it's a
concept whether in space and they put solar panels in space,
which you can get eight times more power than solar
on Earth. And so that is an idea, and that
(40:36):
could be something that could be cost cutting and competitive
by the mid twenty thirties. So great idea, but it
takes a long time for it to build out again,
you know, the shorter term is what do we do
with our existing utility infrastructure when it comes to electricity?
(40:58):
And then everything that powers will liketricity. Right, we're conscious,
we've been for a long long time conscious of you know,
how utility companies, electric companies produce their energy, right, Coal
fire power plants is kind of you know, shunned upon.
So then where else do you go? Do nuclear power
(41:21):
plants explode all over the place, we'll see, But that
all takes time to build out, and is it fast
enough to fill that gap with all these growth projections
to support this AI boom and to really justify some
of these high prices and these tech names. And that
(41:42):
might be the why we're might be why we're seeing
some of the selloff in tech names because of the
valuations are pretty high. It's also going to be very
you know, it's good for the market to have some
of these breathers or pullbacks, albeit instead of just straight
up we've talked a lot about that and previous episodes.
It all boils down to you, how does this impact
(42:04):
you specifically your portfolio? Are these things that you need
to be paying attention to? Does it impact you and
your portfolio, your investments? You know, to help you reach
your goals, financial goals and dreams out there, those are
the things that we help you with, you know, specifically
on a one on one basis. If you're not receiving
that help or you just don't know you've been trying
(42:26):
to manage it on your own, those are the things
that you can reach out to us. Call us at
nine one six nine sixty seven thirty five hundred for
a complimentary, no obligation consultation. We'll put together a financial
plan and see if you're on track and if not,
what needs to happen to get you on track to
get you to your goals. You've been listening to the
Wise Money guys. I'm just up to Visconte. Hope you
(42:48):
guys have a great weekend and talk to you next
week
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