September 5, 2024 • 44 mins
The markets are becoming more and more voilitile every week. Inflation, rates, and pricing are having an impact on your portfolio. Hosts John and Giuseppe give us the latest on interest rates, the Fed, and investing strategies to protect yourself. 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 or call nine
one six nine six seven thirty five hundred.
Speaker 2 (00:17):
Welcome to the Wise Money Guys Radio Show. I'm your
co host, John Scambray and I'm here with my partner,
Jazepa Visconti, and we are certified portfolio managers at a
Granite Bay, California that specialize in helping people who are
retired are about to retire manage their money. If you
like our show and have some questions or want to
get together for a new obligation consultation, call us at
(00:37):
nine one six ninety six seven thirty five hundred. Well,
we have a lot to talk about, and uh wow,
what a wild ride. We'll talk about past couple weeks. Yeah,
we'll talk about the past couple of weeks, especially especially
those three days of where we had a correction off
the highs.
Speaker 3 (00:56):
And then.
Speaker 2 (00:58):
You know, we'll also talk about some predicts, predictions that
we've already made that have been spot on, predictions that
we will make, and then more importantly, we'll end the
show with some great investment ideas and strategies that are
super timely based on all the nutsollness going on, and
that are very timely from a general election, and really
(01:21):
just push on certain types of industries and where money
is going. So you'll want to stay tuned and listen
to the whole show because if I look back at
the five years that I've been on the radio and
the investment ideas that I've talked about, you would have
made a fortune if you bought those particular investments or
(01:43):
put in place those particular strategies. So stay tuned until
the very end. And so let's first talk about the
last couple of weeks Giseppe, and then we.
Speaker 3 (01:57):
Two Fridays ago.
Speaker 2 (01:59):
Was it two Fridays?
Speaker 3 (02:00):
Yeah, it was two Friday, two weeks.
Speaker 2 (02:02):
Time flies when you're having fun.
Speaker 3 (02:06):
But it was headlines where recession fears fed made a
mistake emergency. You know, people were calling for emergency rate
cut cut up to three quarters of a point seventy
five basis points. Before their September meeting.
Speaker 2 (02:23):
There was one guy calling for fifty and fifty one
hundred basis points for this year, for this year to
be almost seventy five and seventy five. Yeah, I mean
just preposters, which.
Speaker 3 (02:34):
Which then would would trigger or signal that something is
wrong in the economy and something was broken and they
have to have an emergency meeting at these cuts.
Speaker 2 (02:47):
Well, and quite frankly, I've been saying all along, there
is no recession. You can't have a recession when you
have unemployment less than five percent.
Speaker 3 (02:58):
Well, not yet, not that there's no recession at all.
Speaker 2 (03:02):
But you can't have a recession when GDP is not negative.
And GDP is about two point four percent projected to
go to two point eight percent, you need at least
two quarters of negative GDP. There's no oh, you know,
you're going to get a nice you know alert on
your phone.
Speaker 3 (03:20):
Two negative cours of negative GDP member. And they said, no,
that's not a recession.
Speaker 2 (03:25):
Right, Well, because unemployment was like three point five percent,
so there's always and retail sales where up. There's always
these betefus. If we just look at the basics. The
basics of a recession means the economy is not growing,
it's retracting. The basis of a recession is people are
struggling to find work. The basis of a recession is
(03:49):
the consumer doesn't have money to spend. None of those
things are in any of the data period, and I
have been saying there is no recession, and in fact,
I have been saying there should be no rate cuts.
And if there is going to be any rate cuts,
it would be a fundamental, huge, repeated mistake by our
(04:12):
central bank, who's been given way too much power that
they should not have monetary power to literally one person
and one and couple that with that whack job Janet Yellen,
who's been wrong about everything. Those two people should not
(04:33):
be in charge of how much liquidity is in the
United States, you know, from a monetary policy perspective, because
it controls nothing. When you have a government that's going
to spend two trillion dollars in excess of what revenue
is coming in, so that's deficit spending. Where does that
(04:55):
money come from? You borrow it? What does that do?
That makes the value of our dollar go down? That
makes spending and that makes supply side economics go out
of whack because demand outpaces supply i e. Price inflation.
Then the debt, you know, payment goes to one above
(05:19):
one point five trillion, which is more than Medicare, social Security,
and the military, you know, not not combined, but individually,
and the system will break. So not only is there
not in a recession, there absolutely should not be any
rate cuts and they're sure as heck shouldn't be this
continued deficit spending because it will be the system.
Speaker 3 (05:43):
Well that's the problem. That is the problem, because you
have the Fed doing one thing and.
Speaker 2 (05:48):
Doing the wrong thing.
Speaker 3 (05:50):
They're doing the wrong thing.
Speaker 2 (05:51):
Well right now, they do the right thing by raising rates.
But the problem because of inflation.
Speaker 3 (05:59):
Exactly, And what's what's the cause of inflation you just said,
it's government spending.
Speaker 2 (06:03):
So the two sides of consumer spending, the two government.
Speaker 3 (06:06):
Spending exactly, the two sides are butting heads and that's
that's the problem. So they're not working together, they're working
against each other. So the Feds are in a pickle.
So if they if they do cut rates right and
spending continues to happen, like you're saying.
Speaker 2 (06:22):
Let me tell you why a rate cut will happen
and why manipulation of rates will happen lower is because
of the debt, and because of the payment on the debt,
they can't truly do what is needed to get to
price stability and prices actually shrinking, because that would mean
(06:43):
that interest rates were so high that the consumer can't
afford h to to to buy what they need. More importantly,
profitability from companies would go down, which means layoffs would increase,
which means unemployment would go up. All of that would
then mean less tax revenue and more deficit spending to
(07:08):
cover just the interest on the debt, the national debt
at thirty five trillion dollars, the military spending, and medicare
and social security, all these other agencies need to be
cut and go away, and all those employees need to
be fired immediately. There's no choice. You can't have it
(07:30):
both ways. You either continue, you know, with our military,
continue with Soli security, continue with medicare as. It is
where you don't pay down the debt, or you figure
out other areas to cut, you know, which is all
these bureaucracies and departments and agencies that literally do nothing,
(07:54):
and the millions and millions of employees that literally do
nothing and get raises year and get lifetime you know,
benefits after working what a few years in the federal government.
So you got to cut from somewhere. Now we know
those things aren't gonna happen. They're not going to happen
because nothing gets done in Washington. So the solution is
(08:17):
is that you have to make a lot of money
on your investments to keep pace with price inflation, to
keep pace with how the cost of everything will continue
to go up, especially if Janet Yellen and the likes
and this administration and the likes and the future administration,
(08:39):
and god forbid that it's Kamala Harris and this Temples
get in power, because the cost of everything and hyper
inflation will be even worse than what we just saw
in twenty twenty two, in twenty twenty three. And the
reality is, what is the solution. You can't make one, two,
(09:01):
or three or four percent on your money and not
run out of money if this is the norm going forward,
and it is the norm going forward as long as
we have a government that spends more than they bring in,
and worse, when you keep shrinking that the the revenue generators,
(09:21):
the tax payers, when you keep taking you know, uh, companies,
prosperity away from the people that generate revenue and tax
and give it to the people that don't generate revenue,
or create jobs, or or or or or generate tax.
The system, you know, will eventually implode, and it only
(09:45):
happens quicker and exponentially faster. And so the reality is,
why do we talk about these things? Because from an
investment perspective, you know, you can't settle even if you
have you know, low debt or no debt, and you're
retired and you have what you know you thought was
(10:08):
all the money you needed. And it used to be that, Giseppe,
if I owned my home, I had a million dollars,
I had Social Security coming in or a pension coming in,
and you know, I was getting four or five six
thousand dollars, you know, a month off of my one
million dollars. I'm doing pretty good in retirement. But now
(10:29):
you know, and it cracks me up that CPI came
out at what what did CPI come out at? Two
point nine Now remember that's not two point nine percent
that prices went down, that's prices went up another two
point nine percent. So you're listening to John Scammer and
I'm here with Giuseppe Wisconi. We were talking about just
(10:50):
the numbers that just came out CPI and what that
means CPI coming out at two point nine percent, Giuseppe,
doesn't mean that prices went down two point nine percent
and month over month they were three point two percent. No,
that means in another additional increase above the increases that
had already.
Speaker 3 (11:09):
Happened, the rate of growth is slung.
Speaker 2 (11:11):
Yeah, so that's like, that's like going okay, well huh so,
now if things you know, only go up by you know,
one point five percent, I actually saved money. No, you
didn't save money. Things went up. They've already gone up
one hundred percent in most cases, grocery, insurance, energy, so
(11:34):
on and so forth, and now they're projected still to
go up if you believe the data, which I do not,
and you shouldn't either.
Speaker 3 (11:42):
Stock market does.
Speaker 2 (11:44):
The stock market only matters for people that have money,
and most sadly, you know, most of the most of
the country does not have stocks. You know, that is
that is the result. The average American has zero dollars saved,
(12:06):
has zero dollars in investments.
Speaker 3 (12:10):
Either way, they're still impacted. The stock market's really going
to drive a lot. If the stock market's doing well,
companies are doing well. Right, If the stock market goes
down thirty percent. Is thatcond impacting you know, corporations and
how they're doing business and maybe expanding and so on
and so forth. I mean, the whole purpose of the
Feds raising interest rates is slowing everything down. Yeah, they
(12:32):
which they've been successful that they right now it's a
matter of are they slowing things down too long to
the point where where something breaks. That's really the that's
really the catalyst to simplify things, Are they slowing things
too down? Slowing things down for too long? Right? And
then the other side's finding back with a spending well
(12:54):
and they're going back and forth.
Speaker 2 (12:56):
The reason why things will break is because they're not
slowing any down. The monetary policies of the Central Bank
will not slow a single thing down. Because as long
as you're spending way more than you're bringing in, and
spending money on things that don't generate you know, GDP,
(13:19):
don't generate better productivity, don't generate you know, more, supply
prices will continue to inflate and it will be harder
and harder for you know, the average American to buy
the things that they need. And so our government has
(13:40):
no plans to cut any you know, excess spending of
any kind. Not only that they want to add more programs,
they want to you know, wipe out more debt. They
want to give away more money around the world. And
(14:02):
none of this is going to, you know, do anything
to control inflation. In fact, inflation is going to get worse.
Now we might have a temporary little slow down. Again,
not that prices will decrease. Prices aren't decreasing at all,
at least not prices that matter. Prices like again, utilities, gas, grocery, insurance,
(14:28):
those aren't decreasing at all. They're increasing at an alarming
rate and will only get worse. I saw that auto
insurance is up this year on top of all the
increases already sixteen point nine percent. So where in CPI
is that two point nine or three point two month
over NNE doesn't exist, it's fraud. Where is it reported
(14:52):
that utilities went up thirteen point three percent this year?
Where is that in this lie of a of a
data item to watch that you know, prices only increased,
you know, two point nine percent. It's you can't use
that data. And that was my point and diatribe was
(15:12):
the only way you can combat this is you have
to be in that have column. What I mean is
the majority of people that this hurts is not our clients.
It's not the clients who you know are still you know,
living paycheck to paychecks, if you still have young families,
(15:34):
still have mortgages and car payments and school payments and
so on and so forth. Those are the people that
this is really impacting the most. And I wish there
was something we could do to help, but the government
certainly isn't going to help. By giving more money away,
borrowing more money away, and making the debt and deficit
(15:56):
even bigger, that's going to make it even worse. So
the people with money will survive. People that have no
debts will survive, especially if they're working with us. We
will help you make the returns and and and protect
your wealth and help you keep up with inflation and
help you accomplish your financial plans, you know, because you
(16:16):
have means. And that, unfortunately, as I said, is the
sad part about it is this doesn't hurt people that
have money. It hurts people that don't have money, and
it puts them in a position where they might never have,
you know, their house paid off, or have a million
dollars in retirement or more, and so on and so forth.
(16:38):
It's getting harder and harder to be a person in
the have tent and and and get out of the
have not tent.
Speaker 3 (16:47):
And so.
Speaker 2 (16:49):
Be that as it may. Retail sales again, because of
all of the the the the entitlement and all of
the money being still put into the economy, retail sales
came in way better than expected, which again shows zero
recession and with zero recession, as you said, Joseppi, that's
(17:13):
why the market turned around and did a one eighty
from two weeks ago where it corrected ten percent.
Speaker 3 (17:20):
Well, it hasn't doen it one eighty, but it's it's
it's coming. It's coming back pretty close. We're not to
the record record high where we were a couple of
weeks ago.
Speaker 2 (17:28):
Yeah, but unless you were in But remember what we
talked about previously, the heat map. You know, most people
didn't own disconnects, right, those seven stocks, and so in
fact they may not have gone down ten percent at all,
you know, or twelve percent or fifteen percent or twenty
(17:49):
percent like Nvidia did off of its you know, all
time high. It came down into the nineties, right, and
now it's back up into the one twenties, and and
so what we were saying is, hey, and what I
was saying, there's no recession. Unemployment is way too low
for there to be a recession, consumer spending is still
(18:11):
at a healthy pace, and I don't think there should
be any rate cuts at all. And in fact, let's
look at the data, and the data supported what I thought.
You know, the CPI, the retail sales, the PPI, so
on and so forth. But the reality is that in
order to survive the next year, the next five years,
(18:35):
the next ten years, if your plan is based on
you know, numbers and goals and expenses that you projected,
you know, last year or five years ago or ten
years ago, and you haven't updated those calculations and those
written plans with you know, current goals and objectives, you
(18:57):
need to and you should call nine on ninety six
seven thirty five hundred, because we will do that and
and give you a questionnaire that will help you re
establish what your goals and expenses and and and plans
are for absolutely no obligation whatsoever. And then we'll show
(19:18):
you the type of portfolio that we would build to
help you accomplish whatever your revised goals and objectives and
expensives come out to be so called nine six ninety
six seven thirty five hundred. Again that numbers nine six
ninety six seven thirty five hundred. So the fact that
(19:41):
we're in what is traditionally normal volatility, meaning most of
the months in the past, over the summer do this,
whether you know it's an election year or not, whether
it's reason only volatile, whether we have low on inflation
(20:02):
or I mean, it's seasonality that I think was also.
Speaker 3 (20:06):
What's not normal volatility is volatility has been very very
low investors and market's been very complacent where they just
continue to add in and mainly the big names, right,
and we saw that in the first half of the year,
a little bit of a pullback in April a little
it was a blip on the radar, but the biggest
volatility swing we've had, which was a couple of weeks ago,
(20:29):
and volatility spiked way up and then it just got
crushed and came down. I don't think we're done with volatility.
And the volatility season, as you mentioned earlier, typically starts
in the back half of July and goes into the
first week of October. So just because we're rallying now,
because you know, two weeks ago, it's funny how short
(20:50):
lived memories are just on a recession, emergency rate cuts,
so on and so forth. Now, none of that's no
I'd say, oh, well, maybe you know, maybe we're going
to do soft landing. I fed are doing a good job,
and maybe we'll just do a quarter point got in September.
I think there's still volatility to be had from here
on out.
Speaker 2 (21:08):
I totally agree. And we've been given and you've been given.
If you're an investor and somebody who has you know,
significant retirement investments in retirement wealth, you've been given another
opportunity and window to take and heed our advice and
strategy of moving you know, some of your profits out
(21:31):
of stocks and buying bonds. So investment strategy number one
is sell some stocks, lock in some profit, which we've
been saying for months and months, okay, and and buy bonds.
The prices spiked up, which means the yields went down,
(21:52):
but now you know, the prices have gone back down
a little bit. Stock prices have gone back up a
little bit. Don't let the second chance go away. If
you're a client, of ours. We're still repositioning from stocks
to alternatives and two bonds, and we'll talk about some
of those specific ideas. You're listening to the wise money guys,
(22:14):
John Scambray and I'm here with my partner just up
to Viscountsing. We're certified portfolio managers that specialize in helping
people who are retired are about to retire manage their money.
If you like our show or our views, or have
questions or want to meet for a no obligation consultation
called nine one six nine six seven thirty five hundred,
(22:36):
again that number is nine six nine six seven thirty
five hundred. Some of the things we should talk about
based on what we've just witnessed over the last couple
of weeks, and what Giuseppe and I both believe will
witness again over the upcoming weeks, you know, will be
the same type of volatility where when we get up
to you know, close to record highs in the in
(22:58):
the Dow and the S and p he you know,
or the NASDAC or the Rustle, whatever the case may be,
then on any sort of you know, adverse news on
inflation or interest rate policy, so on and so forth,
you'll see the markets sell off. So this is where
diversification is crucial. And I don't mean you know, oh
(23:22):
I have you know, five different brands and mutual funds
and I'm working with three different firms. That's not diversification.
Diversification is really about correlation, and that's what we focus
on when we build our clients a custom portfolio of
investments amongst stocks, bonds, real estate, investment trusts, alternative alternative
(23:48):
strategies and solutions, and cash and cash equivalents. You know,
you in individual investments the majority of the time, and
we're focused seen on correlation. Uh, and that's so important.
You want, you know, investments to either have a low correlation,
(24:11):
some number below one, or even better, a negative correlation.
A negative correlation means that the investment, you know, core
when you're looking at the correlation to another, moves in
the exact opposite direction. A positive number or one that
(24:32):
is one point zero means they move exactly. They're exactly correlated.
And so if your correlation is negative, they move in
the opposite direction of each other. If they're you know,
a positive number between zero and one, they move a
portion together or completely the same At all times if
(24:54):
the correlation is one. So we look at that and
again just having you know, a mute fund that's called
you know, the growth and income fun from you know,
say a fidelity or or a vanguard, and then you
have you know, an income or growth fund. Chances are
the top ten holdings or a big portion of the
(25:18):
holdings are the same and you don't have diversification. The
only way you truly know that you have a custom
portfolio amongst all the different asset classes, diversified and weighted
for your risk tolerance, goals and objectives is if you
have individual investments and it's put into you know, a
(25:40):
written and updated plan that tracks how you're doing and
when you work with us, that's what you get, and
the way you get that is by calling nine one
six ninety six seven thirty five hundred. The beauty is
we don't charge separately for planning. Planning is included in
(26:02):
our annual advisory fee. And most of the time for
most people that have you know, decent retirement wealth, retirement
investment wealth, that fee is around one percent, could be higher,
could be lower. It's charged in arrears. In fact, you
know there's only one more quarter that we'll be actually
(26:23):
charging a fee this year, and that's in October. And
so if you were hiring us now for the months
of August, September, you know, October, November, and December, you
would only have a partial fee in October, and then
you wouldn't pay your first quarters fee until January of
(26:43):
next year. So if a fees or worried about high
fees is one of the reasons why you're procrastinating, will
don't because for almost five months, your fee working with
us and everything will do to help you be better
prepared and be on track and have a great financial
(27:06):
future will cost very little between now and the end
of the year, and then you won't pay a first
full quarterly's fee until January, and that typically averages zero
point two five percent. Often we find that embedded in
people's mutual funds is fees and expenses that by going
(27:31):
to a custom individual portfolio you usually we usually save
you that you know, fee that comes out of returns
that pays you know for our you know, uh investment
advisory fee that savings helps offset you know, our costs
and the fact that planning is included, you know. We
(27:55):
we often find that we in fact Desseppi, the new
client we just brought on. What was his what did
we see that his one point four one point four percent.
Now this was a multi million dollar client and his
fee was one point four percent.
Speaker 3 (28:12):
And he had mainly funds in his portfolio, not individual
like direct ownership of stocks.
Speaker 2 (28:20):
And on top of that, those funds had expenses, some
of which we just you know, we just went few
through a few of them. There was one was point
eight nine, one was one point one, one was point
you know. Sit So if you take the cost to
your returns at say a half of percent to one percent,
(28:42):
and then the fact that he was paying one point
four percent on top of it, you know, we're going
to save this person about fifty percent. But we are
way better because this particular company and firm and advisor
that he was working with was past and in fact,
(29:02):
the person wasn't even back to where didn't get him
back to where he was two years ago. He was
still down five percent. Yet you know, what he was
paying was was ridiculous. So you know, give us a
call at nine one six nine six seven thirty five hundred.
When we get together and we we chat and we
(29:24):
we get to know each other. These are some of
the things that well, we'll look for to see if
there's substantial savings for you, but more importantly, if there's
a better way, and we typically find that our way
would would have helped you, you know, more than the
way you're doing things currently. So no obligation. You know,
(29:46):
we're not high pressure salespeople. We don't need any more clients.
We could just take the clients we have and go
off into the sunset, but we love helping people. We
want more and more people to not be the have
nots that I was describing before, and to be in
the have tent versus the have not tent. So call
(30:08):
nine one six nine six seven thirty five hundred. Again
that number is nine one six nine six seven thirty
five hundred. So this window that went away and now's back,
you know, to roll from from stocks a portion you
know of profits, to a portion in fixed income and
(30:31):
alternatives to set be what are some of the fixed
income rates and or fixed rate structures rate returns that
we got people this last week.
Speaker 3 (30:43):
Well, it's becoming harder and harder to find these these
favorable yields and interest rates, but they're still in the
fives one, you know, close to six, but it was
much easier to find five and a half six worth
of six percent.
Speaker 2 (31:01):
And a few months ago.
Speaker 3 (31:03):
Yeah, and so like we've been talking about that, this
window is closing. And if you want to you know, reposition,
or maybe you have exposure to bonds but you have
it through bond funds and you don't own individual bonds
much like.
Speaker 2 (31:17):
This, or don't forget money markets where hey, money market funds,
you're going, hey, I've been getting five you know. Once.
Once those things go down to three or two, it
means that bonds are also down. Investment grade good bonds
that you'd want to have your money in are also
probably down to you know, three or four, you know,
(31:38):
slightly higher for longer maturities. And so keep that in mind.
There's I forget what I heard. You remember the number
of roughly how much money is in money market funds
in the country right now.
Speaker 3 (31:52):
I haven't looked recently. It was in the ten trillion.
Speaker 2 (31:55):
I was in the trillions. And so here's people just going, oh,
you know, I'm getting It's the problem is you can't wait.
You can't wait, and so you know, call us at
nine one six, nine, six, seven thirty five hundred. Let
us show you how an income and growth portfolio, and
(32:15):
the window for that income and growth portfolio is going
away rapidly. Don't let it go away. Take advantage of
the gift of high interest rates. It is a gift
when you don't have a mortgage, when you don't have
car payments, or you have very little to no debt,
(32:35):
you don't need to have all of your money in stocks.
So call nine one six ninety six, seven thirty five hundred.
But what about so here's here's an investment that you
can get through us that's still pretty good. It's not
as good again as it was, you know, a couple
of months ago, but it's still pretty good. That structured
investment that we put people in that had a guaranteed
(33:00):
this just this last week, the one we did was
it ubs.
Speaker 3 (33:03):
Well, it's actually it was actually better than what it
was because volatile, because of the two Because the two
ingredients to have favorable terms on these structured investments is
higher interest rate environment, which we're still in and volatility,
and we hadn't had volatility really in the market up
until you know, a couple of weeks ago. So we
(33:24):
worked with our partner, volatility started spiking up. I called
them and said, hey, what do we got out there?
What type of terms? Because what we were looking for
and again knowing and forecasting that, hey, inter such you
are going to come down. You want to lock in
things that are going to give you a higher rate
of return.
Speaker 2 (33:42):
We want it paid monthly.
Speaker 3 (33:44):
Wanted to pay monthly. It was hard to find something
that wasn't callable, like after three months. So most of
these structured investments are callable Sentially what that means is
they'll just mature early. This one we were able to
lock in, so it's not callable for twelve months. Potential
return is nine point four percent. You can get paid
out monthly, so it'd be one twelfth to that sexo
(34:05):
point seven something a month. Yeah, so it took advantage
of that. You know, stock clack returns nine point four
percent a year, but has a thirty percent downside barrier.
There's some nuances to it. If you want to learn
more about it, give us a call.
Speaker 2 (34:18):
But think about what that means. And a lot of
people don't know what a thirty percent downside or a
thirty percent hedge or a thirty percent buffer means. So
if you own mutual funds or if you own an
ETF and the market goes down twenty seven percent, twenty
eight percent, twenty nine percent, your investment goes down twenty seven,
twenty eight, twenty nine percent. And often people are hoping
(34:41):
for a nine to ten percent you know average annual return. Well,
what this is is guaranteeing a nine point four percent
return as long as the stock market following one of
the major indices doesn't go down thirty percent. So if
it goes down, if the Indussey goes down twenty nine
point nine nine percent, you still get that nine point
(35:05):
four percent annually. Think about that. You don't get that
in your mutual fund or ETF, where if the market
goes down twenty five percent, you don't go down twenty
five percent. And the beauty of this is it's completely liquid.
This is not an indextinuity, This is not a commission product.
This is just a slice of your investment portfolio that
(35:27):
a and a piece of a wonderful income paign investment
that you would have within your custom portfolio when you're
working with us, and we constantly scour the market for
opportunities just like this one to give our clients an
edge above you know, what is going on and help
(35:48):
them be in the best possible position to beat inflation
and exceed their income goals, you know, or or whatever
their goals are objective may be. This is how we
are different. We constantly, you know, update rebalance and make
sure your portfolio is as conservative as it can be
(36:14):
for the rate of return that you need net of
fees and so called nine one six nine six seven
thirty five hundred. You're listening to the Wise Money Guys
radio show. I'm your co host John Scambrand. I'm here
with my partner just upa viscounting and we were just
talking about, you know, shifting and taking advantage of stocks
that have now elevated in price again locking some of
(36:37):
your profit moving to bonds. Bond prices are still decent.
We're still getting people in in the fives. We talked
about a specific other if fixed income investment that pays
nine that paid nine point four percent. Don't fret if
you don't have something like that in your portfolio, you
can give us a call because we can create a
(36:57):
custom investment like that or more clients again, and as
long as there's volatility and high rates. We can create those,
and we can create one that fits specifically for what
your goals and objectives are. You know, So you might
want less of a of a guaranteed you know, rate
(37:18):
to return and higher you know protection on the downside,
or you know, lower protection on the downside, but a
higher you know, average fixed rate to return. I mean,
there's ways to balance it out where you go. Heck,
I want eleven percent return, and I'll take less hedge,
(37:39):
you know, and and or I want more monthly income.
What's the most monthly income I can get for less hedge,
so on and so forth. But we we figure that
out for you. And again it's just a slice of
the alternative investments that we put into our client's portfolios.
Speaker 3 (37:58):
You know.
Speaker 2 (37:58):
The other things that we like and that we're going
to talk about is is private credit. But more importantly,
here's some investments that you can do that's timely, based
on where money is going, based on where politics are
and will probably continue to be. It's no mystery that
(38:21):
governments around the world are pushing to electrify everything, which,
by the way, as long as the push to electrify
everything is out there, utility and energy companies will be
great investments, and we've talked about those in the past.
But we're going to give another sector of investments that
(38:44):
will benefit for the push to electrify everything, and that
is the medals sector. The metal sector is crucial. You
can't electrify everything without copper, without silver, without gold, without aluminum,
without nickel, without steel, so on and so forth. So
(39:09):
I like gold here, I like silver here. More importantly,
I really like copper here. Copper is crucial in electric
in the conduction of electricity, and so if we're going
to electrify the whole world, then copper and copper mining
is going to be crucial.
Speaker 3 (39:30):
Not to mention, continue to power all the AI.
Speaker 2 (39:34):
Great point to Seppi. The other thing that's just insane
is the consumption of power that these servers, you know,
take to store, you know, all the the data that
AI produces, and that bitcoin and blockchain produces. Blockchain technology, yes,
(39:55):
produces ridiculous.
Speaker 3 (39:58):
Consumes.
Speaker 2 (39:59):
Yes, that's a better way to consumes ridiculous amounts of power.
So again, you know, look to the utility sector, look
to the energy sector. If you want more specific ideas
on utilities or energy or metals and I'm going to
give you a couple in metals and mining. Come in
(40:20):
for a no obligation consultation by calling nine to one
six ninety six seven thirty five hundred. Again, this is crucial.
You should be rebalancing and locking in some profits on stocks.
Doesn't mean getting all out of stocks. You should be
in large company, high quality, dividend paying stocks. And if
you're not, in our opinion, especially if you're retired, you
(40:42):
should be. And then you should have a percentage of
your money, a large percentage of your money in fixed
income investments. You know, fixed income alternatives that are getting
you anywhere from five to ten percent fixed. If you're not,
you should be. And then on top of it, for
the stocks and the sector of stocks that you should
(41:04):
be in, you should have a portion of your money
if you're following the money, if you're following government policy
in metals and rare earth minerals. Because the effort to
electrify the world is not going away. So here is
two particular companies that I like that I'm invested in,
(41:26):
that that clients are invested in, that you could take
a look at. Again, I don't know if it fits.
Maybe you shouldn't have any stocks at all. Maybe you
should all have you should have one hundred percent. I
don't know, we don't know what your specific situation is.
But use the rule of thumb that we use when
it comes to new investments. Use a five percent rule,
which means put more than five percent of your portfolio
(41:49):
and in any any new idea or new investment. That way,
if it doesn't work out, you know, it's not going
to crush your your wealth. It's not going to crush
hopefully your portfolio. Hopefully you have you know, other things
that that are doing well. But again, this is not
a short term trade either. Buying metals and minerals and
(42:14):
and it is you know, based on the future. Is
is because you know, I don't think that that is
going to change. I don't think all of a sudden,
you know, we're going to go, you know, back to
some other way. Uh. And even if something new is discovered,
chances are it will still take some sort of metals
(42:36):
and minerals you know, to create you know, the power
or the conduction of power anyway. So the first symbol
I like and and company I like is Alcoa. And
that is a when I say invest in large quality companies.
Alcoa is certainly one of those that is a Dow
Jones company, and the symbol is a A and it
(43:00):
is you know, probably our countries best known steal aluminum,
you know, so on and so forth. And then the
other one, especially for copper and copper mining, is Freeport
Moran fc X. And then finally for gold gold mining
(43:20):
gd X. Gd X is gold mining e t F.
And so there's three symbols that, by the way, are
typically less volatile, especially less volatile than your typical you know,
semiconductor stock or technology stock. Hope you enjoyed the show.
Hope you take a look at those three investment ideas.
(43:43):
Hope you have a wonderful weekend. You've been listening to
John Scameron and Giuseppe Vascunni, the wise money guys. Come
back and give us a listen next weekend.
Speaker 3 (43:52):
By all, bye, I talk to you next week.
Speaker 1 (44:00):
You are
Speaker 2 (44:02):
The me
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 or call nine
one six nine six seven thirty five hundred.
Speaker 2 (00:17):
Welcome to the Wise Money Guys Radio Show. I'm your
co host, John Scambray and I'm here with my partner,
Jazepa Visconti, and we are certified portfolio managers at a
Granite Bay, California that specialize in helping people who are
retired are about to retire manage their money. If you
like our show and have some questions or want to
get together for a new obligation consultation, call us at
(00:37):
nine one six ninety six seven thirty five hundred. Well,
we have a lot to talk about, and uh wow,
what a wild ride. We'll talk about past couple weeks. Yeah,
we'll talk about the past couple of weeks, especially especially
those three days of where we had a correction off
the highs.
Speaker 3 (00:56):
And then.
Speaker 2 (00:58):
You know, we'll also talk about some predicts, predictions that
we've already made that have been spot on, predictions that
we will make, and then more importantly, we'll end the
show with some great investment ideas and strategies that are
super timely based on all the nutsollness going on, and
that are very timely from a general election, and really
(01:21):
just push on certain types of industries and where money
is going. So you'll want to stay tuned and listen
to the whole show because if I look back at
the five years that I've been on the radio and
the investment ideas that I've talked about, you would have
made a fortune if you bought those particular investments or
(01:43):
put in place those particular strategies. So stay tuned until
the very end. And so let's first talk about the
last couple of weeks Giseppe, and then we.
Speaker 3 (01:57):
Two Fridays ago.
Speaker 2 (01:59):
Was it two Fridays?
Speaker 3 (02:00):
Yeah, it was two Friday, two weeks.
Speaker 2 (02:02):
Time flies when you're having fun.
Speaker 3 (02:06):
But it was headlines where recession fears fed made a
mistake emergency. You know, people were calling for emergency rate
cut cut up to three quarters of a point seventy
five basis points. Before their September meeting.
Speaker 2 (02:23):
There was one guy calling for fifty and fifty one
hundred basis points for this year, for this year to
be almost seventy five and seventy five. Yeah, I mean
just preposters, which.
Speaker 3 (02:34):
Which then would would trigger or signal that something is
wrong in the economy and something was broken and they
have to have an emergency meeting at these cuts.
Speaker 2 (02:47):
Well, and quite frankly, I've been saying all along, there
is no recession. You can't have a recession when you
have unemployment less than five percent.
Speaker 3 (02:58):
Well, not yet, not that there's no recession at all.
Speaker 2 (03:02):
But you can't have a recession when GDP is not negative.
And GDP is about two point four percent projected to
go to two point eight percent, you need at least
two quarters of negative GDP. There's no oh, you know,
you're going to get a nice you know alert on
your phone.
Speaker 3 (03:20):
Two negative cours of negative GDP member. And they said, no,
that's not a recession.
Speaker 2 (03:25):
Right, Well, because unemployment was like three point five percent,
so there's always and retail sales where up. There's always
these betefus. If we just look at the basics. The
basics of a recession means the economy is not growing,
it's retracting. The basis of a recession is people are
struggling to find work. The basis of a recession is
(03:49):
the consumer doesn't have money to spend. None of those
things are in any of the data period, and I
have been saying there is no recession, and in fact,
I have been saying there should be no rate cuts.
And if there is going to be any rate cuts,
it would be a fundamental, huge, repeated mistake by our
(04:12):
central bank, who's been given way too much power that
they should not have monetary power to literally one person
and one and couple that with that whack job Janet Yellen,
who's been wrong about everything. Those two people should not
(04:33):
be in charge of how much liquidity is in the
United States, you know, from a monetary policy perspective, because
it controls nothing. When you have a government that's going
to spend two trillion dollars in excess of what revenue
is coming in, so that's deficit spending. Where does that
(04:55):
money come from? You borrow it? What does that do?
That makes the value of our dollar go down? That
makes spending and that makes supply side economics go out
of whack because demand outpaces supply i e. Price inflation.
Then the debt, you know, payment goes to one above
(05:19):
one point five trillion, which is more than Medicare, social Security,
and the military, you know, not not combined, but individually,
and the system will break. So not only is there
not in a recession, there absolutely should not be any
rate cuts and they're sure as heck shouldn't be this
continued deficit spending because it will be the system.
Speaker 3 (05:43):
Well that's the problem. That is the problem, because you
have the Fed doing one thing and.
Speaker 2 (05:48):
Doing the wrong thing.
Speaker 3 (05:50):
They're doing the wrong thing.
Speaker 2 (05:51):
Well right now, they do the right thing by raising rates.
But the problem because of inflation.
Speaker 3 (05:59):
Exactly, And what's what's the cause of inflation you just said,
it's government spending.
Speaker 2 (06:03):
So the two sides of consumer spending, the two government.
Speaker 3 (06:06):
Spending exactly, the two sides are butting heads and that's
that's the problem. So they're not working together, they're working
against each other. So the Feds are in a pickle.
So if they if they do cut rates right and
spending continues to happen, like you're saying.
Speaker 2 (06:22):
Let me tell you why a rate cut will happen
and why manipulation of rates will happen lower is because
of the debt, and because of the payment on the debt,
they can't truly do what is needed to get to
price stability and prices actually shrinking, because that would mean
(06:43):
that interest rates were so high that the consumer can't
afford h to to to buy what they need. More importantly,
profitability from companies would go down, which means layoffs would increase,
which means unemployment would go up. All of that would
then mean less tax revenue and more deficit spending to
(07:08):
cover just the interest on the debt, the national debt
at thirty five trillion dollars, the military spending, and medicare
and social security, all these other agencies need to be
cut and go away, and all those employees need to
be fired immediately. There's no choice. You can't have it
(07:30):
both ways. You either continue, you know, with our military,
continue with Soli security, continue with medicare as. It is
where you don't pay down the debt, or you figure
out other areas to cut, you know, which is all
these bureaucracies and departments and agencies that literally do nothing,
(07:54):
and the millions and millions of employees that literally do
nothing and get raises year and get lifetime you know,
benefits after working what a few years in the federal government.
So you got to cut from somewhere. Now we know
those things aren't gonna happen. They're not going to happen
because nothing gets done in Washington. So the solution is
(08:17):
is that you have to make a lot of money
on your investments to keep pace with price inflation, to
keep pace with how the cost of everything will continue
to go up, especially if Janet Yellen and the likes
and this administration and the likes and the future administration,
(08:39):
and god forbid that it's Kamala Harris and this Temples
get in power, because the cost of everything and hyper
inflation will be even worse than what we just saw
in twenty twenty two, in twenty twenty three. And the
reality is, what is the solution. You can't make one, two,
(09:01):
or three or four percent on your money and not
run out of money if this is the norm going forward,
and it is the norm going forward as long as
we have a government that spends more than they bring in,
and worse, when you keep shrinking that the the revenue generators,
(09:21):
the tax payers, when you keep taking you know, uh, companies,
prosperity away from the people that generate revenue and tax
and give it to the people that don't generate revenue,
or create jobs, or or or or or generate tax.
The system, you know, will eventually implode, and it only
(09:45):
happens quicker and exponentially faster. And so the reality is,
why do we talk about these things? Because from an
investment perspective, you know, you can't settle even if you
have you know, low debt or no debt, and you're
retired and you have what you know you thought was
(10:08):
all the money you needed. And it used to be that, Giseppe,
if I owned my home, I had a million dollars,
I had Social Security coming in or a pension coming in,
and you know, I was getting four or five six
thousand dollars, you know, a month off of my one
million dollars. I'm doing pretty good in retirement. But now
(10:29):
you know, and it cracks me up that CPI came
out at what what did CPI come out at? Two
point nine Now remember that's not two point nine percent
that prices went down, that's prices went up another two
point nine percent. So you're listening to John Scammer and
I'm here with Giuseppe Wisconi. We were talking about just
(10:50):
the numbers that just came out CPI and what that
means CPI coming out at two point nine percent, Giuseppe,
doesn't mean that prices went down two point nine percent
and month over month they were three point two percent. No,
that means in another additional increase above the increases that
had already.
Speaker 3 (11:09):
Happened, the rate of growth is slung.
Speaker 2 (11:11):
Yeah, so that's like, that's like going okay, well huh so,
now if things you know, only go up by you know,
one point five percent, I actually saved money. No, you
didn't save money. Things went up. They've already gone up
one hundred percent in most cases, grocery, insurance, energy, so
(11:34):
on and so forth, and now they're projected still to
go up if you believe the data, which I do not,
and you shouldn't either.
Speaker 3 (11:42):
Stock market does.
Speaker 2 (11:44):
The stock market only matters for people that have money,
and most sadly, you know, most of the most of
the country does not have stocks. You know, that is
that is the result. The average American has zero dollars saved,
(12:06):
has zero dollars in investments.
Speaker 3 (12:10):
Either way, they're still impacted. The stock market's really going
to drive a lot. If the stock market's doing well,
companies are doing well. Right, If the stock market goes
down thirty percent. Is thatcond impacting you know, corporations and
how they're doing business and maybe expanding and so on
and so forth. I mean, the whole purpose of the
Feds raising interest rates is slowing everything down. Yeah, they
(12:32):
which they've been successful that they right now it's a
matter of are they slowing things down too long to
the point where where something breaks. That's really the that's
really the catalyst to simplify things, Are they slowing things
too down? Slowing things down for too long? Right? And
then the other side's finding back with a spending well
(12:54):
and they're going back and forth.
Speaker 2 (12:56):
The reason why things will break is because they're not
slowing any down. The monetary policies of the Central Bank
will not slow a single thing down. Because as long
as you're spending way more than you're bringing in, and
spending money on things that don't generate you know, GDP,
(13:19):
don't generate better productivity, don't generate you know, more, supply
prices will continue to inflate and it will be harder
and harder for you know, the average American to buy
the things that they need. And so our government has
(13:40):
no plans to cut any you know, excess spending of
any kind. Not only that they want to add more programs,
they want to you know, wipe out more debt. They
want to give away more money around the world. And
(14:02):
none of this is going to, you know, do anything
to control inflation. In fact, inflation is going to get worse.
Now we might have a temporary little slow down. Again,
not that prices will decrease. Prices aren't decreasing at all,
at least not prices that matter. Prices like again, utilities, gas, grocery, insurance,
(14:28):
those aren't decreasing at all. They're increasing at an alarming
rate and will only get worse. I saw that auto
insurance is up this year on top of all the
increases already sixteen point nine percent. So where in CPI
is that two point nine or three point two month
over NNE doesn't exist, it's fraud. Where is it reported
(14:52):
that utilities went up thirteen point three percent this year?
Where is that in this lie of a of a
data item to watch that you know, prices only increased,
you know, two point nine percent. It's you can't use
that data. And that was my point and diatribe was
(15:12):
the only way you can combat this is you have
to be in that have column. What I mean is
the majority of people that this hurts is not our clients.
It's not the clients who you know are still you know,
living paycheck to paychecks, if you still have young families,
(15:34):
still have mortgages and car payments and school payments and
so on and so forth. Those are the people that
this is really impacting the most. And I wish there
was something we could do to help, but the government
certainly isn't going to help. By giving more money away,
borrowing more money away, and making the debt and deficit
(15:56):
even bigger, that's going to make it even worse. So
the people with money will survive. People that have no
debts will survive, especially if they're working with us. We
will help you make the returns and and and protect
your wealth and help you keep up with inflation and
help you accomplish your financial plans, you know, because you
(16:16):
have means. And that, unfortunately, as I said, is the
sad part about it is this doesn't hurt people that
have money. It hurts people that don't have money, and
it puts them in a position where they might never have,
you know, their house paid off, or have a million
dollars in retirement or more, and so on and so forth.
(16:38):
It's getting harder and harder to be a person in
the have tent and and and get out of the
have not tent.
Speaker 3 (16:47):
And so.
Speaker 2 (16:49):
Be that as it may. Retail sales again, because of
all of the the the the entitlement and all of
the money being still put into the economy, retail sales
came in way better than expected, which again shows zero
recession and with zero recession, as you said, Joseppi, that's
(17:13):
why the market turned around and did a one eighty
from two weeks ago where it corrected ten percent.
Speaker 3 (17:20):
Well, it hasn't doen it one eighty, but it's it's
it's coming. It's coming back pretty close. We're not to
the record record high where we were a couple of
weeks ago.
Speaker 2 (17:28):
Yeah, but unless you were in But remember what we
talked about previously, the heat map. You know, most people
didn't own disconnects, right, those seven stocks, and so in
fact they may not have gone down ten percent at all,
you know, or twelve percent or fifteen percent or twenty
(17:49):
percent like Nvidia did off of its you know, all
time high. It came down into the nineties, right, and
now it's back up into the one twenties, and and
so what we were saying is, hey, and what I
was saying, there's no recession. Unemployment is way too low
for there to be a recession, consumer spending is still
(18:11):
at a healthy pace, and I don't think there should
be any rate cuts at all. And in fact, let's
look at the data, and the data supported what I thought.
You know, the CPI, the retail sales, the PPI, so
on and so forth. But the reality is that in
order to survive the next year, the next five years,
(18:35):
the next ten years, if your plan is based on
you know, numbers and goals and expenses that you projected,
you know, last year or five years ago or ten
years ago, and you haven't updated those calculations and those
written plans with you know, current goals and objectives, you
(18:57):
need to and you should call nine on ninety six
seven thirty five hundred, because we will do that and
and give you a questionnaire that will help you re
establish what your goals and expenses and and and plans
are for absolutely no obligation whatsoever. And then we'll show
(19:18):
you the type of portfolio that we would build to
help you accomplish whatever your revised goals and objectives and
expensives come out to be so called nine six ninety
six seven thirty five hundred. Again that numbers nine six
ninety six seven thirty five hundred. So the fact that
(19:41):
we're in what is traditionally normal volatility, meaning most of
the months in the past, over the summer do this,
whether you know it's an election year or not, whether
it's reason only volatile, whether we have low on inflation
(20:02):
or I mean, it's seasonality that I think was also.
Speaker 3 (20:06):
What's not normal volatility is volatility has been very very
low investors and market's been very complacent where they just
continue to add in and mainly the big names, right,
and we saw that in the first half of the year,
a little bit of a pullback in April a little
it was a blip on the radar, but the biggest
volatility swing we've had, which was a couple of weeks ago,
(20:29):
and volatility spiked way up and then it just got
crushed and came down. I don't think we're done with volatility.
And the volatility season, as you mentioned earlier, typically starts
in the back half of July and goes into the
first week of October. So just because we're rallying now,
because you know, two weeks ago, it's funny how short
(20:50):
lived memories are just on a recession, emergency rate cuts,
so on and so forth. Now, none of that's no
I'd say, oh, well, maybe you know, maybe we're going
to do soft landing. I fed are doing a good job,
and maybe we'll just do a quarter point got in September.
I think there's still volatility to be had from here
on out.
Speaker 2 (21:08):
I totally agree. And we've been given and you've been given.
If you're an investor and somebody who has you know,
significant retirement investments in retirement wealth, you've been given another
opportunity and window to take and heed our advice and
strategy of moving you know, some of your profits out
(21:31):
of stocks and buying bonds. So investment strategy number one
is sell some stocks, lock in some profit, which we've
been saying for months and months, okay, and and buy bonds.
The prices spiked up, which means the yields went down,
(21:52):
but now you know, the prices have gone back down
a little bit. Stock prices have gone back up a
little bit. Don't let the second chance go away. If
you're a client, of ours. We're still repositioning from stocks
to alternatives and two bonds, and we'll talk about some
of those specific ideas. You're listening to the wise money guys,
(22:14):
John Scambray and I'm here with my partner just up
to Viscountsing. We're certified portfolio managers that specialize in helping
people who are retired are about to retire manage their money.
If you like our show or our views, or have
questions or want to meet for a no obligation consultation
called nine one six nine six seven thirty five hundred,
(22:36):
again that number is nine six nine six seven thirty
five hundred. Some of the things we should talk about
based on what we've just witnessed over the last couple
of weeks, and what Giuseppe and I both believe will
witness again over the upcoming weeks, you know, will be
the same type of volatility where when we get up
to you know, close to record highs in the in
(22:58):
the Dow and the S and p he you know,
or the NASDAC or the Rustle, whatever the case may be,
then on any sort of you know, adverse news on
inflation or interest rate policy, so on and so forth,
you'll see the markets sell off. So this is where
diversification is crucial. And I don't mean you know, oh
(23:22):
I have you know, five different brands and mutual funds
and I'm working with three different firms. That's not diversification.
Diversification is really about correlation, and that's what we focus
on when we build our clients a custom portfolio of
investments amongst stocks, bonds, real estate, investment trusts, alternative alternative
(23:48):
strategies and solutions, and cash and cash equivalents. You know,
you in individual investments the majority of the time, and
we're focused seen on correlation. Uh, and that's so important.
You want, you know, investments to either have a low correlation,
(24:11):
some number below one, or even better, a negative correlation.
A negative correlation means that the investment, you know, core
when you're looking at the correlation to another, moves in
the exact opposite direction. A positive number or one that
(24:32):
is one point zero means they move exactly. They're exactly correlated.
And so if your correlation is negative, they move in
the opposite direction of each other. If they're you know,
a positive number between zero and one, they move a
portion together or completely the same At all times if
(24:54):
the correlation is one. So we look at that and
again just having you know, a mute fund that's called
you know, the growth and income fun from you know,
say a fidelity or or a vanguard, and then you
have you know, an income or growth fund. Chances are
the top ten holdings or a big portion of the
(25:18):
holdings are the same and you don't have diversification. The
only way you truly know that you have a custom
portfolio amongst all the different asset classes, diversified and weighted
for your risk tolerance, goals and objectives is if you
have individual investments and it's put into you know, a
(25:40):
written and updated plan that tracks how you're doing and
when you work with us, that's what you get, and
the way you get that is by calling nine one
six ninety six seven thirty five hundred. The beauty is
we don't charge separately for planning. Planning is included in
(26:02):
our annual advisory fee. And most of the time for
most people that have you know, decent retirement wealth, retirement
investment wealth, that fee is around one percent, could be higher,
could be lower. It's charged in arrears. In fact, you
know there's only one more quarter that we'll be actually
(26:23):
charging a fee this year, and that's in October. And
so if you were hiring us now for the months
of August, September, you know, October, November, and December, you
would only have a partial fee in October, and then
you wouldn't pay your first quarters fee until January of
(26:43):
next year. So if a fees or worried about high
fees is one of the reasons why you're procrastinating, will
don't because for almost five months, your fee working with
us and everything will do to help you be better
prepared and be on track and have a great financial
(27:06):
future will cost very little between now and the end
of the year, and then you won't pay a first
full quarterly's fee until January, and that typically averages zero
point two five percent. Often we find that embedded in
people's mutual funds is fees and expenses that by going
(27:31):
to a custom individual portfolio you usually we usually save
you that you know, fee that comes out of returns
that pays you know for our you know, uh investment
advisory fee that savings helps offset you know, our costs
and the fact that planning is included, you know. We
(27:55):
we often find that we in fact Desseppi, the new
client we just brought on. What was his what did
we see that his one point four one point four percent.
Now this was a multi million dollar client and his
fee was one point four percent.
Speaker 3 (28:12):
And he had mainly funds in his portfolio, not individual
like direct ownership of stocks.
Speaker 2 (28:20):
And on top of that, those funds had expenses, some
of which we just you know, we just went few
through a few of them. There was one was point
eight nine, one was one point one, one was point
you know. Sit So if you take the cost to
your returns at say a half of percent to one percent,
(28:42):
and then the fact that he was paying one point
four percent on top of it, you know, we're going
to save this person about fifty percent. But we are
way better because this particular company and firm and advisor
that he was working with was past and in fact,
(29:02):
the person wasn't even back to where didn't get him
back to where he was two years ago. He was
still down five percent. Yet you know, what he was
paying was was ridiculous. So you know, give us a
call at nine one six nine six seven thirty five hundred.
When we get together and we we chat and we
(29:24):
we get to know each other. These are some of
the things that well, we'll look for to see if
there's substantial savings for you, but more importantly, if there's
a better way, and we typically find that our way
would would have helped you, you know, more than the
way you're doing things currently. So no obligation. You know,
(29:46):
we're not high pressure salespeople. We don't need any more clients.
We could just take the clients we have and go
off into the sunset, but we love helping people. We
want more and more people to not be the have
nots that I was describing before, and to be in
the have tent versus the have not tent. So call
(30:08):
nine one six nine six seven thirty five hundred. Again
that number is nine one six nine six seven thirty
five hundred. So this window that went away and now's back,
you know, to roll from from stocks a portion you
know of profits, to a portion in fixed income and
(30:31):
alternatives to set be what are some of the fixed
income rates and or fixed rate structures rate returns that
we got people this last week.
Speaker 3 (30:43):
Well, it's becoming harder and harder to find these these
favorable yields and interest rates, but they're still in the
fives one, you know, close to six, but it was
much easier to find five and a half six worth
of six percent.
Speaker 2 (31:01):
And a few months ago.
Speaker 3 (31:03):
Yeah, and so like we've been talking about that, this
window is closing. And if you want to you know, reposition,
or maybe you have exposure to bonds but you have
it through bond funds and you don't own individual bonds
much like.
Speaker 2 (31:17):
This, or don't forget money markets where hey, money market funds,
you're going, hey, I've been getting five you know. Once.
Once those things go down to three or two, it
means that bonds are also down. Investment grade good bonds
that you'd want to have your money in are also
probably down to you know, three or four, you know,
(31:38):
slightly higher for longer maturities. And so keep that in mind.
There's I forget what I heard. You remember the number
of roughly how much money is in money market funds
in the country right now.
Speaker 3 (31:52):
I haven't looked recently. It was in the ten trillion.
Speaker 2 (31:55):
I was in the trillions. And so here's people just going, oh,
you know, I'm getting It's the problem is you can't wait.
You can't wait, and so you know, call us at
nine one six, nine, six, seven thirty five hundred. Let
us show you how an income and growth portfolio, and
(32:15):
the window for that income and growth portfolio is going
away rapidly. Don't let it go away. Take advantage of
the gift of high interest rates. It is a gift
when you don't have a mortgage, when you don't have
car payments, or you have very little to no debt,
(32:35):
you don't need to have all of your money in stocks.
So call nine one six ninety six, seven thirty five hundred.
But what about so here's here's an investment that you
can get through us that's still pretty good. It's not
as good again as it was, you know, a couple
of months ago, but it's still pretty good. That structured
investment that we put people in that had a guaranteed
(33:00):
this just this last week, the one we did was
it ubs.
Speaker 3 (33:03):
Well, it's actually it was actually better than what it
was because volatile, because of the two Because the two
ingredients to have favorable terms on these structured investments is
higher interest rate environment, which we're still in and volatility,
and we hadn't had volatility really in the market up
until you know, a couple of weeks ago. So we
(33:24):
worked with our partner, volatility started spiking up. I called
them and said, hey, what do we got out there?
What type of terms? Because what we were looking for
and again knowing and forecasting that, hey, inter such you
are going to come down. You want to lock in
things that are going to give you a higher rate
of return.
Speaker 2 (33:42):
We want it paid monthly.
Speaker 3 (33:44):
Wanted to pay monthly. It was hard to find something
that wasn't callable, like after three months. So most of
these structured investments are callable Sentially what that means is
they'll just mature early. This one we were able to
lock in, so it's not callable for twelve months. Potential
return is nine point four percent. You can get paid
out monthly, so it'd be one twelfth to that sexo
(34:05):
point seven something a month. Yeah, so it took advantage
of that. You know, stock clack returns nine point four
percent a year, but has a thirty percent downside barrier.
There's some nuances to it. If you want to learn
more about it, give us a call.
Speaker 2 (34:18):
But think about what that means. And a lot of
people don't know what a thirty percent downside or a
thirty percent hedge or a thirty percent buffer means. So
if you own mutual funds or if you own an
ETF and the market goes down twenty seven percent, twenty
eight percent, twenty nine percent, your investment goes down twenty seven,
twenty eight, twenty nine percent. And often people are hoping
(34:41):
for a nine to ten percent you know average annual return. Well,
what this is is guaranteeing a nine point four percent
return as long as the stock market following one of
the major indices doesn't go down thirty percent. So if
it goes down, if the Indussey goes down twenty nine
point nine nine percent, you still get that nine point
(35:05):
four percent annually. Think about that. You don't get that
in your mutual fund or ETF, where if the market
goes down twenty five percent, you don't go down twenty
five percent. And the beauty of this is it's completely liquid.
This is not an indextinuity, This is not a commission product.
This is just a slice of your investment portfolio that
(35:27):
a and a piece of a wonderful income paign investment
that you would have within your custom portfolio when you're
working with us, and we constantly scour the market for
opportunities just like this one to give our clients an
edge above you know, what is going on and help
(35:48):
them be in the best possible position to beat inflation
and exceed their income goals, you know, or or whatever
their goals are objective may be. This is how we
are different. We constantly, you know, update rebalance and make
sure your portfolio is as conservative as it can be
(36:14):
for the rate of return that you need net of
fees and so called nine one six nine six seven
thirty five hundred. You're listening to the Wise Money Guys
radio show. I'm your co host John Scambrand. I'm here
with my partner just upa viscounting and we were just
talking about, you know, shifting and taking advantage of stocks
that have now elevated in price again locking some of
(36:37):
your profit moving to bonds. Bond prices are still decent.
We're still getting people in in the fives. We talked
about a specific other if fixed income investment that pays
nine that paid nine point four percent. Don't fret if
you don't have something like that in your portfolio, you
can give us a call because we can create a
(36:57):
custom investment like that or more clients again, and as
long as there's volatility and high rates. We can create those,
and we can create one that fits specifically for what
your goals and objectives are. You know, So you might
want less of a of a guaranteed you know, rate
(37:18):
to return and higher you know protection on the downside,
or you know, lower protection on the downside, but a
higher you know, average fixed rate to return. I mean,
there's ways to balance it out where you go. Heck,
I want eleven percent return, and I'll take less hedge,
(37:39):
you know, and and or I want more monthly income.
What's the most monthly income I can get for less hedge,
so on and so forth. But we we figure that
out for you. And again it's just a slice of
the alternative investments that we put into our client's portfolios.
Speaker 3 (37:58):
You know.
Speaker 2 (37:58):
The other things that we like and that we're going
to talk about is is private credit. But more importantly,
here's some investments that you can do that's timely, based
on where money is going, based on where politics are
and will probably continue to be. It's no mystery that
(38:21):
governments around the world are pushing to electrify everything, which,
by the way, as long as the push to electrify
everything is out there, utility and energy companies will be
great investments, and we've talked about those in the past.
But we're going to give another sector of investments that
(38:44):
will benefit for the push to electrify everything, and that
is the medals sector. The metal sector is crucial. You
can't electrify everything without copper, without silver, without gold, without aluminum,
without nickel, without steel, so on and so forth. So
(39:09):
I like gold here, I like silver here. More importantly,
I really like copper here. Copper is crucial in electric
in the conduction of electricity, and so if we're going
to electrify the whole world, then copper and copper mining
is going to be crucial.
Speaker 3 (39:30):
Not to mention, continue to power all the AI.
Speaker 2 (39:34):
Great point to Seppi. The other thing that's just insane
is the consumption of power that these servers, you know,
take to store, you know, all the the data that
AI produces, and that bitcoin and blockchain produces. Blockchain technology, yes,
(39:55):
produces ridiculous.
Speaker 3 (39:58):
Consumes.
Speaker 2 (39:59):
Yes, that's a better way to consumes ridiculous amounts of power.
So again, you know, look to the utility sector, look
to the energy sector. If you want more specific ideas
on utilities or energy or metals and I'm going to
give you a couple in metals and mining. Come in
(40:20):
for a no obligation consultation by calling nine to one
six ninety six seven thirty five hundred. Again, this is crucial.
You should be rebalancing and locking in some profits on stocks.
Doesn't mean getting all out of stocks. You should be
in large company, high quality, dividend paying stocks. And if
you're not, in our opinion, especially if you're retired, you
(40:42):
should be. And then you should have a percentage of
your money, a large percentage of your money in fixed
income investments. You know, fixed income alternatives that are getting
you anywhere from five to ten percent fixed. If you're not,
you should be. And then on top of it, for
the stocks and the sector of stocks that you should
(41:04):
be in, you should have a portion of your money
if you're following the money, if you're following government policy
in metals and rare earth minerals. Because the effort to
electrify the world is not going away. So here is
two particular companies that I like that I'm invested in,
(41:26):
that that clients are invested in, that you could take
a look at. Again, I don't know if it fits.
Maybe you shouldn't have any stocks at all. Maybe you
should all have you should have one hundred percent. I
don't know, we don't know what your specific situation is.
But use the rule of thumb that we use when
it comes to new investments. Use a five percent rule,
which means put more than five percent of your portfolio
(41:49):
and in any any new idea or new investment. That way,
if it doesn't work out, you know, it's not going
to crush your your wealth. It's not going to crush
hopefully your portfolio. Hopefully you have you know, other things
that that are doing well. But again, this is not
a short term trade either. Buying metals and minerals and
(42:14):
and it is you know, based on the future. Is
is because you know, I don't think that that is
going to change. I don't think all of a sudden,
you know, we're going to go, you know, back to
some other way. Uh. And even if something new is discovered,
chances are it will still take some sort of metals
(42:36):
and minerals you know, to create you know, the power
or the conduction of power anyway. So the first symbol
I like and and company I like is Alcoa. And
that is a when I say invest in large quality companies.
Alcoa is certainly one of those that is a Dow
Jones company, and the symbol is a A and it
(43:00):
is you know, probably our countries best known steal aluminum,
you know, so on and so forth. And then the
other one, especially for copper and copper mining, is Freeport
Moran fc X. And then finally for gold gold mining
(43:20):
gd X. Gd X is gold mining e t F.
And so there's three symbols that, by the way, are
typically less volatile, especially less volatile than your typical you know,
semiconductor stock or technology stock. Hope you enjoyed the show.
Hope you take a look at those three investment ideas.
(43:43):
Hope you have a wonderful weekend. You've been listening to
John Scameron and Giuseppe Vascunni, the wise money guys. Come
back and give us a listen next weekend.
Speaker 3 (43:52):
By all, bye, I talk to you next week.
Speaker 1 (44:00):
You are
Speaker 2 (44:02):
The me
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