November 20, 2024 • 36 mins
Chuck Zodda and Paul Lane discuss American companies stocking up to get ahead of Trump's China tariffs. Delta forecasts profit growth thanks to high-end travel and a resilient economy. To get the housing market moving, raise property taxes. What are the best US cities to retire to in 2025? Comcast announces $7B spinoff of NBCUniversal cable channels. Employers get pressure to pay for drugs like Wegovy.
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Episode Transcript
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Speaker 1 (00:00):
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(00:42):
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(01:04):
Veterans Development Corporation. This is the Financial Exchange with Chuck
Zutta and Paul Lane.
Speaker 2 (01:11):
Kicking off hour two.
Speaker 3 (01:12):
Here, it's Chuck, Paul, and Tucker with you, and markets
remain just kind of stuck in neutral. It's just kind
of chopping from day to day. The Dow is off
seventeen points, the S ANDP is down thirty, the NASDAK
down one fourteen, so about a half percentage point on
the S and P and Nasdaq, and we continue to
see the nasdam Sorry, the S and P just fluttering
right around fifty eight to seventy five where look that's
(01:36):
where it got to back in mid October. So we've
just kind of been clumping around the same place for
the last month month and a half now and no
real clear direction. We had a couple days in early
November where the market fell a couple percent, we had
a couple days after the election where the market rose
(01:57):
by a couple percent, and other than that, we've been
sitting between like fifty seven fifty and fifty eight eighty
five eighty six on the S and P five hundred,
so just not a whole lot of movement there. As
markets are trying to figure out what the plan is
from the incoming Trump administration and how to position itself.
(02:19):
We've just not found a clear direction either up or down.
Tenure US Treasury has had a clear direction. Yields have
been moving up in anticipation of either greater growth or
greater inflation. And so you've been seeing those yields moving
up a little bit the ten years now at four
point four to one percent. Yeah, not a huge move,
maybe a quarter percent or so, but you've seen a
(02:41):
little bit more of a definitive move there. Oil West
texts Intermediate also not going anywhere. We're just chopping around.
Seventy dollars a barrel, up thirty eight cents today to
sixty nine to seventy seven. The TRIPAA national average for
gas prices up three tents of ascent from three oh
six and three tenths to three h six and six tenths.
Still can't get that number below three dollars on a
(03:05):
national level yet. And gold today up nineteen eighty ounce
to twenty six fifty and eighty cents. Paul Piece in
the Wall Street Journal today it's titled American companies are
stocking up to get ahead of Trump's China tariffs. Big
thing is, Hey, if the incoming president says he's going
to raise tariffs on Chinese imports significantly, you say, I'm
(03:27):
gonna buy all the stuff I can before he comes
into office.
Speaker 2 (03:29):
It's not entirely surprising.
Speaker 1 (03:31):
No.
Speaker 4 (03:31):
In terms of what we saw from a numbers perspective perspective,
outbound shipments from China rose thirteen percent in the month
of October from a year earlier. That percentage in the
month of September was only two point four percent, so
really significant uptick there. Americans buy about four hundred and
thirty billion of Chinese goods. Though the share of US
(03:53):
imports that are coming from China it has dropped over
the last five or six years from all of the
disputes and tension between China and the US. The share
of US imports that was from China in twenty seventeen
was twenty two percent. That figure sits at about fourteen
percent as of twenty twenty three. A lot of companies,
particularly the bigger ones Chuck I would imagine, are relatively
(04:15):
well positioned for any tariff impact. I think Walmart or
another CEO I was reading their earning transcript call where
they had mentioned, Listen, we've been in this trade war
chatter for five six years. This isn't new to us.
So I would imagine the ones with significant size and scale,
they have contingency plans in place. And you read a
lot that Vietnam and other countries in Southeast Asia have
(04:37):
been utilized from a manufacturing standpoint. They're still not as
strong in terms of the prowess that China has in manufacturing,
but these bigger companies are going to be prepared, I
would imagine with alternatives. The problem is, and it's highlighted
here in this Wall Street Journal piece for the small
business there was one in particular that's to me here
(04:57):
that I just thought encapsulate. It's kind of what we're
taught came out when we talked about the impact of tariffs.
It's this business you know out of Charlotte, North Carolina,
that is called Fine Fits Sisters. It's two sisters that
sell a body oil for thirteen bucks, largely advertise over TikTok.
They source all of their product from China, and they
were just mentioning that if these tariffs were in to
(05:19):
go into effect, the sixty percent one that's been mentioned,
they would likely just pivot away from selling the product
in general because people buy it because it's so cheap,
the thirteen dollars, but the sixty percent tariff would just
lead them to really not have the manufacturing capability like
a Walmart, to pivot to another country.
Speaker 5 (05:35):
They would just kind of close up shop.
Speaker 3 (05:37):
And part of this again, look, we don't know exactly
what's going to be implemented. Still, it's going to be
two months before we do, maybe even longer because again
this might not go in, you know, on day one.
But there's also a chance even for those larger companies, Okay,
you pivoted to having you know, your goods produce in
Vietnam or India, you could potentially see tariffs increased on
(05:59):
those countries as well. So, hey, maybe there is a
sixty percent one on China and twenty percent on Indian
and Vietnam and Thailand. Like we we just don't know,
and ultimately we're not gonna know for a couple months.
But what we do know is the behavior that we're
seeing both from businesses and from consumers, which is, hey,
(06:20):
I'm gonna try to buy as much stuff as I
can in the next couple months because the price might
go up later. The interesting thing as a result of
that is, hey, if it costs companies more to speed
that process up, they might have to raise prices even
before tariffs, because they're saying, look, normally, I have, you know,
(06:40):
two shipments a month that are coming in. I'm now
paying for six shipments to try to you know, frontload
a few months of this. But my shipping rates went
up because everyone's doing this, and so I have to
raise my prices anyways, because my shipping costs are upper.
My manufacturer said, hey, if you want to buy that
many more, I've got to you know, pay people extra
in order to come back to the factory for four hours,
(07:01):
and so I've got to charge you more. So even
before tariffs hit, this stuff may end up resulting in
some higher costs in the short term because supply and demand.
If the supply is the same but demand is higher,
usually that pushes prices up even absent a tariff.
Speaker 4 (07:18):
And that dovetails into another piece that we have here
with inter Stack from CNBC, where at the same time
that these companies are looking to front load orders from China,
you have a potential for another strike on the Gulf
coast or on the East coast ports that could transpire
in early January.
Speaker 2 (07:36):
Good it's been a couple months since we've had to
cover one.
Speaker 4 (07:37):
Of those, so we could have a real mixture of
a front loading of a lot of goods coming from
overseas combined with potentially another strike coming January fifteenth, that
is at least the deadline that they would have to
strike a new deal. The International long Shoreman's Association had
went on strike for three days back in what was
(07:58):
that September. I'm all the blur days blur together, but
that was a three day strike that was resolved where
you did see five ships initially at port. It got
congested to fifty four during that three day period and
it took a couple of weeks to shake out. So again,
this is months off, but something that could be a
potential issue on top of the front loading of orders
(08:18):
from overseas.
Speaker 2 (08:20):
Why do they call them long shoreman? I do not
know what about short shoreman?
Speaker 5 (08:27):
Well, they're covering a lot of territory.
Speaker 2 (08:31):
Well maybe, but maybe not.
Speaker 3 (08:33):
I know the one that I did cover on the
show back when we were covering the dock workers strike
a little a little while ago was steve adoor, which
is another term for a dock worker, and that actually
comes from a Portuguese or Spanish origination, which is a
Steve adore, which the direct translation is man who loads
ships in stow's cargo. So that's where Steve ador comes from.
(08:56):
But long shortman, We've got an answer.
Speaker 5 (08:59):
I'm seeing.
Speaker 6 (08:59):
The term longshore is a shortened version of a longshore,
which means along the shore.
Speaker 2 (09:06):
There you go, love it. This is no That's why
I'm here. This is why.
Speaker 3 (09:12):
Look when whenever I go home every night, I ask
my daughter, I say what you learn today? And she says,
you know, whatever she says, and I always have to
have something that I learned today as well. Now I
can explain to her why they're called long shortman, and
it makes perfect sense, it does.
Speaker 2 (09:27):
This is great.
Speaker 3 (09:28):
This is my favorite segment is a year and a half.
I don't see the problem. You know, you gotta start
with these contents jeopardy before we know it. You've got
to start with these concepts early. I'm a big believer
in that.
Speaker 1 (09:42):
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Speaker 3 (10:07):
Delta today coming out with projections for twenty twenty five growth.
They are expecting to, you know, basically see continued mid
single digit growth in terms of their revenue, you know,
somewhere in the five to six percent range. They're going
to expand the number of seats they have by three
to four percent, and they're hoping in the long term
(10:29):
to be able to grow adjusted learnings by ten percent
per year over the next three to five years. Your
thoughts on what they announced here.
Speaker 4 (10:37):
Paul, Delta is an example of a company that has
done really well in the airline space. Of the course
of the last year or so, the shares were up
about sixty percent through Tuesday's close. United has also fared
well also. Of course, we've talked about on the show
Spirit and its struggles and some of the other airlines
that have really struggled. But Delta's real focus strategically has
(10:59):
been on going after the more affluent customer or the
business traveler, and really leaning on their partnership that they
have with American Express to satisfy the demand for pricier seats.
They are mentioning that in terms of what they're seeing
from their revenue makeup fifty seven percent of it is
generated by premium seats and their loyalty program. So it's
(11:22):
a real big revenue driver to have those upgrades that
it targets for their more premium seats. And as a result,
the company has fared well. They're going to expand the
amount of people flying from twenty twenty four heading into
twenty five, they're anticipating four percent year over year expanded capacity.
So overall, it seems like they're relatively well positioned in
(11:45):
what is just a really difficult business to run effectively.
Speaker 2 (11:49):
Yeah, I would agree they're kind of the leader in
the clubhouse. Paul.
Speaker 3 (11:53):
We got two tax stories to cover here. I kind
of want to go to this property tax one first,
just because I think there's a little bit.
Speaker 2 (12:03):
Of juice there to talk about.
Speaker 3 (12:04):
And it's a piece from Connerson in Bloomberg Opinion, and
the title of it gets right to the point to
get the housing market moving, raise property taxes, and immediately
everyone driving was just like, Oh, I gotta pull over.
I can't believe Chuck said that you want to write.
First of all, I didn't write the piece. Second, I'm
(12:26):
not even saying it's right or not. I'm just saying
that that's what the piece is talking about. But here's
something that's really interesting California. If you're not familiar with
how California property taxes work, it's basically written into the
state constitution in California that your property taxes effectively don't
(12:48):
change as long as you live there. There can be
small adjustments, but they're really small. This is how you
end up with places that are valued at like five
million dollars in California paying two thousand dollars a year.
Speaker 2 (12:59):
In property taxes.
Speaker 3 (13:01):
And what we see is the California is one of
the lowest property turnover rates in the country because, hey,
once you get this great subsidy from the state effectively
saying your property taxes are staying low, you look around.
You're like, well, I might want to move, but my
cost of home ownership is going to go through the
roof because my property taxes go up. Even if I'm
(13:22):
buying a place that's the same value and I don't
need a mortgage. Still, my property taxes might quintuplar, you know,
go up tenfold because of where property tax rates are
with current valuations. Texas, on the other hand, has really
high property taxes, and you see lots of turnover. Texas
also has you know, lower taxes in other areas of
(13:44):
the state tax, no state income tax, but you see
much more turnover in the housing market because people aren't
kept in place by low property taxes. And so I
think there is some merit to this in parts of
the country, most notably freaking California, whose property market is
as broken as anyone that I've ever seen, where you literally,
(14:07):
I mean, you'll hear people say, hey, I moved here
fifty years ago, and my property taxes are under one
thousand dollars, and I can't move because if I move
to a place that's the same value, my property tax
would go from like seven hundred to thirty thousand dollars.
Speaker 2 (14:21):
And that's just.
Speaker 3 (14:23):
That's not right because it distorts the market because you're
effectively saying, hey, any of those new people that are moving,
you're picking up the tax bill for those who are
still sticking around.
Speaker 5 (14:35):
Who've got that great grandfather deal?
Speaker 3 (14:36):
And it's also look, you get a bunch of freeloaders,
then oh, I don't have to pay my property taxes
like and I don't have to pay but hey, I
don't have to pay more like this is how it's written. Well, okay,
but you're still using services and just not paying for them.
Basically you're a freeloader. So I think there are certainly
markets where this is the case. But when you look
(15:00):
at the areas that are seeing the biggest gaps in
inventory right now, it's not California actually compared to pre pandemic.
It's a lot of New England states, a lot of
mid Atlantic states that have really low inventory compared to
twenty nineteen and before.
Speaker 2 (15:16):
And I don't think.
Speaker 3 (15:17):
Anyone looks at, you know, the Connecticut housing market or
the New Hampshire housing market, New Hampshire which has very
high property taxes and says, hey, you know what the
answer is here higher property taxes.
Speaker 2 (15:27):
So I think this could.
Speaker 3 (15:28):
Fix you know, some stuff in states that have broken
property markets, like California. But ultimately the answer everywhere is, guys,
we need to build more housing.
Speaker 1 (15:41):
Right.
Speaker 5 (15:41):
It always comes back to that.
Speaker 3 (15:42):
And until we do that, we're gonna have some problems
and specifically building it where people.
Speaker 2 (15:49):
Want to live.
Speaker 3 (15:51):
It's it's not enough to be like, well, we found
a bunch of land out in the forest eighty miles
from the nearest large Nuh, that's kind of useless. How
do you make it so that commuters can get to
their jobs, whether they are you know, accountants, dunkin donuts, employees, teachers,
(16:13):
garbage people, whatever they whatever they're doing, they got to
be close enough that they can get to work. And
that's the problem that we're seeing in a lot of
cities also. And it's why when you hear about the
the problems with hey, you know, labor force shortages, which
aren't as prevalent today, it was mostly around cities because
people like you just don't have enough people that live
in close proximity to be able to work in those
(16:33):
areas because it's too expensive. So expensive, yeah, it is,
So that's kind of what we're seeing on that side.
Any other thoughts covered in that piece that that you
wanted to touch on, Paul.
Speaker 5 (16:43):
No, I think those those hit on some good posts.
I was trying to think of.
Speaker 4 (16:45):
There are any other states that have that unique structure
that that California does in terms of property taxes. It
seems like something that is just just out of this
realm of possibility to be able to have such low
property taxes sustain for such a long period of time.
Speaker 3 (17:04):
Yeah, and this, by the way, again it dates back
to Proposition thirteen, which passed in nineteen seventy eight. It's
part of the state constitution there, and it effectively prevents
any kind of large scale changes to the property taxes
that you have there. I'll just quote here in terms
of like what it basically does. But it again, I'm
(17:30):
not finding that the best quote for it. I thought
I had one, and then it turned out to not
be there. But it pretty much was taxpayers saying no,
we don't want any more property tax increases if we're
not moving, and it's completely broken the state's housing market
over the last fifty years.
Speaker 1 (17:45):
Now.
Speaker 4 (17:47):
The other proposition that they have, which is really unique
that I've heard about is Proposition six, which has passed
in nineteen sixty where basically golf courses are just deemed
nonprofits and that they can't bear the assessment of the
property taxes in that area. So you have the Los
Angeles Country Club, which is this three hundred acre country
(18:07):
club that the land alone is worth eight billion dollars
and they're assessed at eighteen million for tax purposes. But
they don't have to pay that. They don't have to
pay that level. Bob Hope had passed that back in
been part of passing that in nineteen sixty.
Speaker 2 (18:22):
Yeah, golf courses are a nonprofit.
Speaker 1 (18:24):
Okay, bringing the latest financial news straight to your radio
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Speaker 3 (18:52):
All right, Paul, let's talk a little bit here about
the best US cities to retire in.
Speaker 2 (18:59):
In twenty twenty five.
Speaker 3 (19:02):
US News and World Report is out with their latest
ranking and the winner on this for this year.
Speaker 4 (19:10):
Naples, Florida. M your thoughts, Paul, Naples. The one thing
I was trying to research during the break here. They
while certainly get impacted by hurricanes, what I've heard and
someone here can correct me if I'm wrong, is that
they are not in the sort of hot zone of
(19:31):
getting really brutally impacted by.
Speaker 2 (19:34):
Oh I got hit pretty hard by these ones this year.
Speaker 4 (19:36):
Yeah, I know, so I just I pause briefly when
they got the number one spot because of the hurricane impact. Now,
I think there was a period of time from Irma
through Hurricane Wilma where there was a period ten twelve
years that they weren't directly impacted based on my quick
searching here, but certainly that's something that based on what
we saw with Harricane Helene, that was a that we
(20:02):
want to think about if you're looking into retirement because
of the impact that it's only going to get worse
over time.
Speaker 6 (20:08):
Here's the sorry I was just gonna say. My mom
actually has had a condo in Naples for years now.
We've had family in Fort Myers and they have had
to flock to Naples her place for safety, and not
really a huge impact, Like, yes they were impacted, but
not like to the extent of Fort Myers or whatever.
Speaker 3 (20:25):
So here are they ranked one hundred and fifty cities
because I guess they couldn't be bothered to do more
than that. Naples number one, Virginia Beach, Virginia number two,
New York City, the number three place to retire. That
one was so confounding, a little bit confusing. Now we
can get into the reasons why Sarasota, Florida Okay, Boise, Idaho, Sure, Raleigh,
(20:47):
North Carolina, Okay, Jacksonville, Florida, Fine, Huntsville, Alabama.
Speaker 2 (20:52):
Number eight.
Speaker 3 (20:55):
Just just put it out there, like you don't really
hear a lot of people talk about Huntsville is like
a burgeoning retire reed destination, but maybe it is. Charlotte,
North Carolina, Sure, Fort Wayne, Indiana. And the next one
really gives you pause. Green Bay, Wisconsin. Now here's the thing.
This is not to say like anything bad about Wisconsin
(21:17):
or Indiana. I actually really like Wisconsin. Only been there twice,
great time each time. Great cheese, great beer, great people,
everything I want in the place.
Speaker 2 (21:25):
Love it. Fort Wayne, Indiana. Never been there.
Speaker 3 (21:28):
I don't know, you know what I would think, Quite honestly,
I just don't know if it's for me. Green Bay
is freaking freezing in the winter. It's not quite Minneapolis,
but it's freezing. And one of the major things that
retirees talk about when they say, hey, like here's what
I want to do in retirement, it's finding ways to
(21:51):
get out of the cold weather, specifically hot weather. We
figured out, hey, you know what you do, you sit
inside with the air conditioning on, or you got your
screen pool in Florida and stuff like. We figured the
cold stuff absent just doing nothing outside at all, which
is kind of impossible.
Speaker 2 (22:10):
It's it's kind of hard.
Speaker 3 (22:11):
So some of these I wonder about, but overall, this
is the list that they've put together.
Speaker 2 (22:17):
New York.
Speaker 3 (22:17):
The biggest problem that I have with it cost of living. Right,
it's really expensive to live in New York, and a
lot of retirees are on fixed incomes that can't get
anywhere near affording a New York City you know, studio
apartment let alone a one or two bedroom, and so
I think it's tough for me to be like, well,
New York City makes it up with, you know, good
(22:39):
health care and lots of stuff to do. Yeah, but
you got to pay like five times the national average
and rent to be able to do that.
Speaker 4 (22:46):
Not to mention, you have most retirees coming from owning
some sort of home for the most part, and not
to overly generalize, but you accustomed to let's say at
least two thousand square feet dropping down to New York.
You're going to have to cut down your square footage
significantly to make that transition. It's interesting the factors that
they list out here, happiness, affordability, healthcare, retiring taxes, desirability.
(23:08):
You do have to have weather, I think in there
it has to be part of the calculation. And then
they have job market.
Speaker 5 (23:14):
Which to me seems a little counterintuitive. But retired the.
Speaker 3 (23:17):
Retiree job market, you know, like, what does that even mean?
Because we all have different things that we want to
do as retirees. Paul, what's your dream retirement job?
Speaker 5 (23:27):
Sitting on the beach?
Speaker 4 (23:28):
No, No, like actually doing a job. Yeah, I thought
this is a good question. Lifeguard, lifeguard. I think everyone says, like, God,
this is not my retirement. I haven't even thought about
that because I just would think I'm not working.
Speaker 2 (23:41):
You ever thought about this once.
Speaker 5 (23:43):
I don't plan to work in retirement.
Speaker 2 (23:45):
You don't even want to do something just to get
out of the house.
Speaker 6 (23:46):
I need something to keep me busy.
Speaker 2 (23:50):
No, okay, Tucker, what about you? What do you got?
Speaker 6 (23:53):
I don't know, like running a small coffee shop or
a diner or something or something like that.
Speaker 2 (23:58):
I want something keep me busy.
Speaker 3 (24:00):
I want to scoop ice cream in the summer and
drive a school bus in the winter.
Speaker 6 (24:04):
No, yeah, I want to be pouring coffee at a
diner and just right, like, you don't shoot in the
s right, what do you have to worry about with
that shot?
Speaker 3 (24:12):
The breeze with people, there's no stress. You're not trying
to make it anywhere. You're just like, hey, I'm good
with this me. I want to scoop ice cream a
few months out of the year, a couple of days
a week, and I want to drive kids to and
from school in the school bus like and you know,
honk the horn and stuff like that.
Speaker 5 (24:27):
Ah.
Speaker 4 (24:28):
Yeah, I'm not not with you, guys. Yeah, I find
my other ways to fill time. Okay, there you go.
In any case, retirement different for everyone exactly.
Speaker 3 (24:36):
And this dovetails nicely into something that I'd like to
tell everyone about the Armstrong Advisory Group, and that the
arm Strong Advisory Group is specifically built to help answer
the questions of hey, what do you want to do
in retirement and how do you actually get there? This
is what our advisors work on, day in, day out
with people is figuring out how to make your retirement
(24:59):
dream actually happen, and so whether you're thinking about moving
to a different city and trying to figure out what
the cost of living is or how you're gonna make
ends meet there, whether you're thinking about retiring next year
and trying to figure out do you have enough money
in order to retire.
Speaker 2 (25:15):
These are the.
Speaker 3 (25:16):
Questions that the Armstrong Advisory Group focuses on every single day.
To schedule an appointment called eight hundred three nine three
four zero zero one, that number again is eight hundred
three nine three for zero zero one. We have offices
all throughout New England. And again, if you're trying to
(25:37):
figure out what to do in retirement, if your retirement
can work for you, that number is eight hundred three
nine three for zero zero one.
Speaker 1 (25:46):
The proceeding was paid for by Armstrong Advisory Group, a
registered investment advisor. Nothing in the ad or in any
Armstrong guide a specific financial, legal or tax advice. Consult
your own financial, tax into state planning advisors before making
any investment decisions. Armstrong may contact you to offer investment
advisory services.
Speaker 3 (26:01):
Comcast announcing early this morning they are moving forward with
a plan to spin off their NBC Universal cable networks.
So this is talking about MSNBC, CNBC, USA E, Sci Fi,
Golf Channel, like there's some properties on there that have
some you know, interesting content, but ultimately they're just not
(26:22):
making much money from them, because well, it's a situation
where you've got people dropping cable and the bundles are
falling apart in this and that, and so Comcast is
trying to figure out what to do.
Speaker 2 (26:36):
With this.
Speaker 5 (26:39):
Go ahead.
Speaker 4 (26:40):
No, it's just an interesting strategy shift that you see
that really very clearly delineating that they see the cable
business as a dying a dying breed, which has been
known for a while, but they're putting money behind it.
Speaker 3 (26:55):
So I think there's another possibility here, okay, and this
is one of them. And this is similar to what
we saw from AT and T, which remember tried to
buy up you know, Direct TV, as well as Warner
Brothers Discovery and figuring out like, hey, we want to
own the way the pipes going into the house and
the content on those pipes.
Speaker 2 (27:12):
That was the whole thing.
Speaker 3 (27:13):
And now companies are like, this is actually kind of bad.
It's it's not working the way we thought. So no,
get rid of the pipes and get rid of the content.
Here's another thought that I had. Though they're saying, look,
we want to spin these assets off, they're still generating
seven billion dollars in revenue. Comcast isn't the only company
that has these assets. What if this is actually a
(27:37):
signal to other companies that might have similar ones. Hey,
you know what, you could sell these to us and
then we'll figure out how to spin them off. I'm
just wondering if Comcast actually wants to acquire more of
this in order to you know, either a keep them
and have better economies of scale with all of the
(27:58):
content for or maybe a streaming platform that can actually
make money now that Disney's figuring out how to do
it as an example, Or do they really want to
get rid of them, because just trying to get rid
of them, I don't I'm still not quite buying that
they're just like abandoning it right away.
Speaker 4 (28:18):
So give me an example as to what Comcasts would
be looking to do in that situation. So you're saying
that they would create others in the industry to spin
off channels that they would then acquire back.
Speaker 3 (28:31):
I'm saying, what if Comcast doesn't actually want to spin
this off, but they're pretending to want to spin it
off so they can actually acquire more channels.
Speaker 4 (28:39):
Outside of the ones that they just spun off. Here
he spun them off yet, Well that they've mentioned spinning off.
Speaker 3 (28:45):
I'm saying, what if they don't actually want to do
the spin off that they're saying they do. Oh So
it's just a it just seems to be And granted
I might just be reading too far into this, but
I'm just wondering if there's something else there, especially you
look at some of these like USA just as an example.
(29:06):
I mean, like again, USA, You've got freaking Law and
Order reruns on all day every There are people who
like you go into some people's houses and there's just
Law and Order SVU going all day every day. CNBC
go into any financial advisor's business, it's on all day
every day. The Golf Channel, you go into Tucker's house
all day every day.
Speaker 2 (29:28):
So there is a way to make money off this.
Speaker 3 (29:32):
They're still generating seven billion in revenue, it's just they're
not monetizing the assets well. And part of me is like, hey,
is it maybe just that they actually want more consolidation
in this space, which I'm not saying would be good
for us overall. But I'm wondering if that's another option
that they're considering.
Speaker 4 (29:48):
So more so a signaling to the market that hey,
we're game to start merging some of these assets with Perhaps.
Speaker 2 (29:54):
Maybe we could do something more with this.
Speaker 3 (29:56):
If you guys are all thinking about spinning your stuff off,
maybe we could actually be the And if it doesn't
work for us, great, we'll still spin it off.
Speaker 2 (30:02):
But maybe we could make it work.
Speaker 5 (30:04):
I don't know, we'll create a new cable.
Speaker 3 (30:05):
I'm probably just reading too much into it. Let's take
a quick break here. We got stack Roulette coming up next.
Speaker 1 (30:11):
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Speaker 6 (30:38):
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Speaker 2 (31:14):
Paul, what do you have for me for stack Roulet.
Speaker 4 (31:19):
Employers are getting pressure to pay for drugs drugs like Wigovie, Eli,
Eli Lilly and Nova Nordis. Representatives are going out and
trying to pitch companies on covering the much popularized weight
loss drugs. Eli Lilly is is Manjerno and wigovie is
the regular prescription or ozembic one, which was more for diabetes.
(31:42):
But these drugs have become really popular and they're really expensive.
They cost one thousand bucks a month, and so the
focus of Eli, Lilly and Nova Noordis now has been
going to employers to try and get them on board
with covering the weight loss plans for their employees. There's
a huge subset of the United States population that could
be covered or could go on these drugs, but there's
(32:05):
a huge hesancy from these employers because of the costs
associated with them. Right now, only about half of large
employers cover anti OBC medications, and across smaller employers you
really don't see much of it at all. So this
is truly the next fight that Eli Lilly and Nova
noors have to fight in order to continue to get
(32:25):
the sales growth that they've seen from these really popular
weight loss drugs.
Speaker 3 (32:29):
And look, it's still early with these I mean they've
been they've been utilized for pure weight loss and not
just treatment of diabetes for only a couple of years now.
But the studies that we've been seeing are and I
don't really throw this word around too often, but they're
nothing short of miraculous in terms of the potential improvements
(32:50):
and all cause morbidity.
Speaker 2 (32:53):
It's just it's unbelievable what you are seeing out there.
It really is.
Speaker 4 (32:58):
They have they're testing on other uses for these drugs.
It's it's really powerful what's coming out from them. But
obviously there I was trying to recall, there's some sorts
of lawsuits that have banded together I believe for o zempic,
and so there's going to be trials and tribulations, I guess,
is what I'm getting at. Without knowing the specificities of that,
that lawsuits there and understandably, given the cost and the
(33:22):
potential you know, litigation risks, as an employer, you have
the right to be a little bit hesitant on the
widespread use of this.
Speaker 3 (33:31):
Yeah, I can get it from that perspective. The counter is, Hey,
the stuff that actually, you know, raises costs for us
when it comes to us healthcare. A lot of it
is obesity related, it's heart disease, it's you know, cancers
that have strong correlations with weight and things like like,
it's it's all that stuff that is, you know, tied
(33:54):
pretty closely to weight. And the potential long term savings
out of more widespread usage of these drugs.
Speaker 2 (34:05):
Is potentially huge.
Speaker 4 (34:07):
Yeah, the employers kind of ruthlessly want to kick that
can down the road to medicare just to have them
cover it, you know what I mean.
Speaker 5 (34:14):
Yeah, Like, I get.
Speaker 4 (34:15):
It too, but it is it's not the right thing
to do. But that's that ruthless employer mentality is, Hey,
I only care about Chuck Zada from age you know,
thirty five to sixty or whenever he retires, and then
how any of the long term issues he deals with,
you know, Medicare can figure out the rest.
Speaker 3 (34:32):
The other thing that you do have to remember patents
on US drugs, they're twenty years and we're I don't
know how long exactly into this, but sometime in the
next you know, fourteen fifteen years, you're going to have
generics of these as well. Right, And and the cost
curve even on you know, blockbuster drugs is bent significantly
through generics. You go back, just as an example, when
(34:53):
it first came out in the nineteen nineties, viagra.
Speaker 2 (34:56):
Was like eighty dollars a pill.
Speaker 3 (34:59):
It's like who now you talk about You're talking about
like a ninety percent reduction in cost. You're gonna see
similar things with this as well, just because that's what
happens when you get generic versions that come out. Now,
that doesn't mean the answer is just well, if you're overweight,
now just wait fifteen years. Like, no, that's not really
(35:19):
a good thing, because the data also shows the sooner
that you drop the excess weight, the better you like it.
It's a multiplier effect. It's not just lose it and
you're you're good, it's how early and how soon can
you lose it because it stresses.
Speaker 2 (35:31):
Your body during that that extra time.
Speaker 3 (35:33):
So I look at this and granted, we still don't
have long term studies on potential side effects, and there
are some significant ones that can that can.
Speaker 2 (35:43):
Crop up with this.
Speaker 3 (35:44):
So it's it's not like these drugs are for everyone, hm,
but man, for the people that it works for, the
potential change and the outlook for their long term health
is just huge, and it's it's it's it's it's mind
blowing stuff that we're seeing. Taking a look at markets
as we had towards the middle of the day in
(36:05):
the top of the hour, s and P five hundreds
down eighteen points, Nasdaq down seventy three, but the Dow
is peeking up into positive territory up six points at
the moment here, So we'll see where things go. Remember,
we've got Nvidia reporting after the bell. We're just about
out of time now, but we're gonna be back tomorrow.
(36:25):
We'll tell you everything that happened with in Vidia. And look,
we got a couple hours of show, so I'm sure
we're gonna talk about other things too, but all the
Invidia that you can ask for tomorrow, and a whole
lot more on the financial exchange
The Financial Exchange is produced by Money Matters Radio and
is hosted by employees of the Armstrong Advisory Group, a
registered investment advisor. All opinions expressed are solely those of
the hosts. Do not reflect the opinions of Armstrong Advisory
or anyone else. Investments can lose money. This program does
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(00:20):
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(00:42):
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(01:04):
Veterans Development Corporation. This is the Financial Exchange with Chuck
Zutta and Paul Lane.
Speaker 2 (01:11):
Kicking off hour two.
Speaker 3 (01:12):
Here, it's Chuck, Paul, and Tucker with you, and markets
remain just kind of stuck in neutral. It's just kind
of chopping from day to day. The Dow is off
seventeen points, the S ANDP is down thirty, the NASDAK
down one fourteen, so about a half percentage point on
the S and P and Nasdaq, and we continue to
see the nasdam Sorry, the S and P just fluttering
right around fifty eight to seventy five where look that's
(01:36):
where it got to back in mid October. So we've
just kind of been clumping around the same place for
the last month month and a half now and no
real clear direction. We had a couple days in early
November where the market fell a couple percent, we had
a couple days after the election where the market rose
(01:57):
by a couple percent, and other than that, we've been
sitting between like fifty seven fifty and fifty eight eighty
five eighty six on the S and P five hundred,
so just not a whole lot of movement there. As
markets are trying to figure out what the plan is
from the incoming Trump administration and how to position itself.
(02:19):
We've just not found a clear direction either up or down.
Tenure US Treasury has had a clear direction. Yields have
been moving up in anticipation of either greater growth or
greater inflation. And so you've been seeing those yields moving
up a little bit the ten years now at four
point four to one percent. Yeah, not a huge move,
maybe a quarter percent or so, but you've seen a
(02:41):
little bit more of a definitive move there. Oil West
texts Intermediate also not going anywhere. We're just chopping around.
Seventy dollars a barrel, up thirty eight cents today to
sixty nine to seventy seven. The TRIPAA national average for
gas prices up three tents of ascent from three oh
six and three tenths to three h six and six tenths.
Still can't get that number below three dollars on a
(03:05):
national level yet. And gold today up nineteen eighty ounce
to twenty six fifty and eighty cents. Paul Piece in
the Wall Street Journal today it's titled American companies are
stocking up to get ahead of Trump's China tariffs. Big
thing is, Hey, if the incoming president says he's going
to raise tariffs on Chinese imports significantly, you say, I'm
(03:27):
gonna buy all the stuff I can before he comes
into office.
Speaker 2 (03:29):
It's not entirely surprising.
Speaker 1 (03:31):
No.
Speaker 4 (03:31):
In terms of what we saw from a numbers perspective perspective,
outbound shipments from China rose thirteen percent in the month
of October from a year earlier. That percentage in the
month of September was only two point four percent, so
really significant uptick there. Americans buy about four hundred and
thirty billion of Chinese goods. Though the share of US
(03:53):
imports that are coming from China it has dropped over
the last five or six years from all of the
disputes and tension between China and the US. The share
of US imports that was from China in twenty seventeen
was twenty two percent. That figure sits at about fourteen
percent as of twenty twenty three. A lot of companies,
particularly the bigger ones Chuck I would imagine, are relatively
(04:15):
well positioned for any tariff impact. I think Walmart or
another CEO I was reading their earning transcript call where
they had mentioned, Listen, we've been in this trade war
chatter for five six years. This isn't new to us.
So I would imagine the ones with significant size and scale,
they have contingency plans in place. And you read a
lot that Vietnam and other countries in Southeast Asia have
(04:37):
been utilized from a manufacturing standpoint. They're still not as
strong in terms of the prowess that China has in manufacturing,
but these bigger companies are going to be prepared, I
would imagine with alternatives. The problem is, and it's highlighted
here in this Wall Street Journal piece for the small
business there was one in particular that's to me here
(04:57):
that I just thought encapsulate. It's kind of what we're
taught came out when we talked about the impact of tariffs.
It's this business you know out of Charlotte, North Carolina,
that is called Fine Fits Sisters. It's two sisters that
sell a body oil for thirteen bucks, largely advertise over TikTok.
They source all of their product from China, and they
were just mentioning that if these tariffs were in to
(05:19):
go into effect, the sixty percent one that's been mentioned,
they would likely just pivot away from selling the product
in general because people buy it because it's so cheap,
the thirteen dollars, but the sixty percent tariff would just
lead them to really not have the manufacturing capability like
a Walmart, to pivot to another country.
Speaker 5 (05:35):
They would just kind of close up shop.
Speaker 3 (05:37):
And part of this again, look, we don't know exactly
what's going to be implemented. Still, it's going to be
two months before we do, maybe even longer because again
this might not go in, you know, on day one.
But there's also a chance even for those larger companies, Okay,
you pivoted to having you know, your goods produce in
Vietnam or India, you could potentially see tariffs increased on
(05:59):
those countries as well. So, hey, maybe there is a
sixty percent one on China and twenty percent on Indian
and Vietnam and Thailand. Like we we just don't know,
and ultimately we're not gonna know for a couple months.
But what we do know is the behavior that we're
seeing both from businesses and from consumers, which is, hey,
(06:20):
I'm gonna try to buy as much stuff as I
can in the next couple months because the price might
go up later. The interesting thing as a result of
that is, hey, if it costs companies more to speed
that process up, they might have to raise prices even
before tariffs, because they're saying, look, normally, I have, you know,
(06:40):
two shipments a month that are coming in. I'm now
paying for six shipments to try to you know, frontload
a few months of this. But my shipping rates went
up because everyone's doing this, and so I have to
raise my prices anyways, because my shipping costs are upper.
My manufacturer said, hey, if you want to buy that
many more, I've got to you know, pay people extra
in order to come back to the factory for four hours,
(07:01):
and so I've got to charge you more. So even
before tariffs hit, this stuff may end up resulting in
some higher costs in the short term because supply and demand.
If the supply is the same but demand is higher,
usually that pushes prices up even absent a tariff.
Speaker 4 (07:18):
And that dovetails into another piece that we have here
with inter Stack from CNBC, where at the same time
that these companies are looking to front load orders from China,
you have a potential for another strike on the Gulf
coast or on the East coast ports that could transpire
in early January.
Speaker 2 (07:36):
Good it's been a couple months since we've had to
cover one.
Speaker 4 (07:37):
Of those, so we could have a real mixture of
a front loading of a lot of goods coming from
overseas combined with potentially another strike coming January fifteenth, that
is at least the deadline that they would have to
strike a new deal. The International long Shoreman's Association had
went on strike for three days back in what was
(07:58):
that September. I'm all the blur days blur together, but
that was a three day strike that was resolved where
you did see five ships initially at port. It got
congested to fifty four during that three day period and
it took a couple of weeks to shake out. So again,
this is months off, but something that could be a
potential issue on top of the front loading of orders
(08:18):
from overseas.
Speaker 2 (08:20):
Why do they call them long shoreman? I do not
know what about short shoreman?
Speaker 5 (08:27):
Well, they're covering a lot of territory.
Speaker 2 (08:31):
Well maybe, but maybe not.
Speaker 3 (08:33):
I know the one that I did cover on the
show back when we were covering the dock workers strike
a little a little while ago was steve adoor, which
is another term for a dock worker, and that actually
comes from a Portuguese or Spanish origination, which is a
Steve adore, which the direct translation is man who loads
ships in stow's cargo. So that's where Steve ador comes from.
(08:56):
But long shortman, We've got an answer.
Speaker 5 (08:59):
I'm seeing.
Speaker 6 (08:59):
The term longshore is a shortened version of a longshore,
which means along the shore.
Speaker 2 (09:06):
There you go, love it. This is no That's why
I'm here. This is why.
Speaker 3 (09:12):
Look when whenever I go home every night, I ask
my daughter, I say what you learn today? And she says,
you know, whatever she says, and I always have to
have something that I learned today as well. Now I
can explain to her why they're called long shortman, and
it makes perfect sense, it does.
Speaker 2 (09:27):
This is great.
Speaker 3 (09:28):
This is my favorite segment is a year and a half.
I don't see the problem. You know, you gotta start
with these contents jeopardy before we know it. You've got
to start with these concepts early. I'm a big believer
in that.
Speaker 1 (09:42):
Fine daily interviews and full shows of the Financial Exchange
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(10:04):
You're listening to the Financial Exchange Radio Network.
Speaker 3 (10:07):
Delta today coming out with projections for twenty twenty five growth.
They are expecting to, you know, basically see continued mid
single digit growth in terms of their revenue, you know,
somewhere in the five to six percent range. They're going
to expand the number of seats they have by three
to four percent, and they're hoping in the long term
(10:29):
to be able to grow adjusted learnings by ten percent
per year over the next three to five years. Your
thoughts on what they announced here.
Speaker 4 (10:37):
Paul, Delta is an example of a company that has
done really well in the airline space. Of the course
of the last year or so, the shares were up
about sixty percent through Tuesday's close. United has also fared
well also. Of course, we've talked about on the show
Spirit and its struggles and some of the other airlines
that have really struggled. But Delta's real focus strategically has
(10:59):
been on going after the more affluent customer or the
business traveler, and really leaning on their partnership that they
have with American Express to satisfy the demand for pricier seats.
They are mentioning that in terms of what they're seeing
from their revenue makeup fifty seven percent of it is
generated by premium seats and their loyalty program. So it's
(11:22):
a real big revenue driver to have those upgrades that
it targets for their more premium seats. And as a result,
the company has fared well. They're going to expand the
amount of people flying from twenty twenty four heading into
twenty five, they're anticipating four percent year over year expanded capacity.
So overall, it seems like they're relatively well positioned in
(11:45):
what is just a really difficult business to run effectively.
Speaker 2 (11:49):
Yeah, I would agree they're kind of the leader in
the clubhouse. Paul.
Speaker 3 (11:53):
We got two tax stories to cover here. I kind
of want to go to this property tax one first,
just because I think there's a little bit.
Speaker 2 (12:03):
Of juice there to talk about.
Speaker 3 (12:04):
And it's a piece from Connerson in Bloomberg Opinion, and
the title of it gets right to the point to
get the housing market moving, raise property taxes, and immediately
everyone driving was just like, Oh, I gotta pull over.
I can't believe Chuck said that you want to write.
First of all, I didn't write the piece. Second, I'm
(12:26):
not even saying it's right or not. I'm just saying
that that's what the piece is talking about. But here's
something that's really interesting California. If you're not familiar with
how California property taxes work, it's basically written into the
state constitution in California that your property taxes effectively don't
(12:48):
change as long as you live there. There can be
small adjustments, but they're really small. This is how you
end up with places that are valued at like five
million dollars in California paying two thousand dollars a year.
Speaker 2 (12:59):
In property taxes.
Speaker 3 (13:01):
And what we see is the California is one of
the lowest property turnover rates in the country because, hey,
once you get this great subsidy from the state effectively
saying your property taxes are staying low, you look around.
You're like, well, I might want to move, but my
cost of home ownership is going to go through the
roof because my property taxes go up. Even if I'm
(13:22):
buying a place that's the same value and I don't
need a mortgage. Still, my property taxes might quintuplar, you know,
go up tenfold because of where property tax rates are
with current valuations. Texas, on the other hand, has really
high property taxes, and you see lots of turnover. Texas
also has you know, lower taxes in other areas of
(13:44):
the state tax, no state income tax, but you see
much more turnover in the housing market because people aren't
kept in place by low property taxes. And so I
think there is some merit to this in parts of
the country, most notably freaking California, whose property market is
as broken as anyone that I've ever seen, where you literally,
(14:07):
I mean, you'll hear people say, hey, I moved here
fifty years ago, and my property taxes are under one
thousand dollars, and I can't move because if I move
to a place that's the same value, my property tax
would go from like seven hundred to thirty thousand dollars.
Speaker 2 (14:21):
And that's just.
Speaker 3 (14:23):
That's not right because it distorts the market because you're
effectively saying, hey, any of those new people that are moving,
you're picking up the tax bill for those who are
still sticking around.
Speaker 5 (14:35):
Who've got that great grandfather deal?
Speaker 3 (14:36):
And it's also look, you get a bunch of freeloaders,
then oh, I don't have to pay my property taxes
like and I don't have to pay but hey, I
don't have to pay more like this is how it's written. Well, okay,
but you're still using services and just not paying for them.
Basically you're a freeloader. So I think there are certainly
markets where this is the case. But when you look
(15:00):
at the areas that are seeing the biggest gaps in
inventory right now, it's not California actually compared to pre pandemic.
It's a lot of New England states, a lot of
mid Atlantic states that have really low inventory compared to
twenty nineteen and before.
Speaker 2 (15:16):
And I don't think.
Speaker 3 (15:17):
Anyone looks at, you know, the Connecticut housing market or
the New Hampshire housing market, New Hampshire which has very
high property taxes and says, hey, you know what the
answer is here higher property taxes.
Speaker 2 (15:27):
So I think this could.
Speaker 3 (15:28):
Fix you know, some stuff in states that have broken
property markets, like California. But ultimately the answer everywhere is, guys,
we need to build more housing.
Speaker 1 (15:41):
Right.
Speaker 5 (15:41):
It always comes back to that.
Speaker 3 (15:42):
And until we do that, we're gonna have some problems
and specifically building it where people.
Speaker 2 (15:49):
Want to live.
Speaker 3 (15:51):
It's it's not enough to be like, well, we found
a bunch of land out in the forest eighty miles
from the nearest large Nuh, that's kind of useless. How
do you make it so that commuters can get to
their jobs, whether they are you know, accountants, dunkin donuts, employees, teachers,
(16:13):
garbage people, whatever they whatever they're doing, they got to
be close enough that they can get to work. And
that's the problem that we're seeing in a lot of
cities also. And it's why when you hear about the
the problems with hey, you know, labor force shortages, which
aren't as prevalent today, it was mostly around cities because
people like you just don't have enough people that live
in close proximity to be able to work in those
(16:33):
areas because it's too expensive. So expensive, yeah, it is,
So that's kind of what we're seeing on that side.
Any other thoughts covered in that piece that that you
wanted to touch on, Paul.
Speaker 5 (16:43):
No, I think those those hit on some good posts.
I was trying to think of.
Speaker 4 (16:45):
There are any other states that have that unique structure
that that California does in terms of property taxes. It
seems like something that is just just out of this
realm of possibility to be able to have such low
property taxes sustain for such a long period of time.
Speaker 3 (17:04):
Yeah, and this, by the way, again it dates back
to Proposition thirteen, which passed in nineteen seventy eight. It's
part of the state constitution there, and it effectively prevents
any kind of large scale changes to the property taxes
that you have there. I'll just quote here in terms
of like what it basically does. But it again, I'm
(17:30):
not finding that the best quote for it. I thought
I had one, and then it turned out to not
be there. But it pretty much was taxpayers saying no,
we don't want any more property tax increases if we're
not moving, and it's completely broken the state's housing market
over the last fifty years.
Speaker 1 (17:45):
Now.
Speaker 4 (17:47):
The other proposition that they have, which is really unique
that I've heard about is Proposition six, which has passed
in nineteen sixty where basically golf courses are just deemed
nonprofits and that they can't bear the assessment of the
property taxes in that area. So you have the Los
Angeles Country Club, which is this three hundred acre country
(18:07):
club that the land alone is worth eight billion dollars
and they're assessed at eighteen million for tax purposes. But
they don't have to pay that. They don't have to
pay that level. Bob Hope had passed that back in
been part of passing that in nineteen sixty.
Speaker 2 (18:22):
Yeah, golf courses are a nonprofit.
Speaker 1 (18:24):
Okay, bringing the latest financial news straight to your radio
every day. It's the Financial Exchange on the Financial Exchange
Radio Network. The Financial Exchange streams live on YouTube. Like
(18:45):
our page and stay up to date on breaking business news.
All morning, Loan. This is the Financial Exchange Radio Network.
Speaker 3 (18:52):
All right, Paul, let's talk a little bit here about
the best US cities to retire in.
Speaker 2 (18:59):
In twenty twenty five.
Speaker 3 (19:02):
US News and World Report is out with their latest
ranking and the winner on this for this year.
Speaker 4 (19:10):
Naples, Florida. M your thoughts, Paul, Naples. The one thing
I was trying to research during the break here. They
while certainly get impacted by hurricanes, what I've heard and
someone here can correct me if I'm wrong, is that
they are not in the sort of hot zone of
(19:31):
getting really brutally impacted by.
Speaker 2 (19:34):
Oh I got hit pretty hard by these ones this year.
Speaker 4 (19:36):
Yeah, I know, so I just I pause briefly when
they got the number one spot because of the hurricane impact. Now,
I think there was a period of time from Irma
through Hurricane Wilma where there was a period ten twelve
years that they weren't directly impacted based on my quick
searching here, but certainly that's something that based on what
we saw with Harricane Helene, that was a that we
(20:02):
want to think about if you're looking into retirement because
of the impact that it's only going to get worse
over time.
Speaker 6 (20:08):
Here's the sorry I was just gonna say. My mom
actually has had a condo in Naples for years now.
We've had family in Fort Myers and they have had
to flock to Naples her place for safety, and not
really a huge impact, Like, yes they were impacted, but
not like to the extent of Fort Myers or whatever.
Speaker 3 (20:25):
So here are they ranked one hundred and fifty cities
because I guess they couldn't be bothered to do more
than that. Naples number one, Virginia Beach, Virginia number two,
New York City, the number three place to retire. That
one was so confounding, a little bit confusing. Now we
can get into the reasons why Sarasota, Florida Okay, Boise, Idaho, Sure, Raleigh,
(20:47):
North Carolina, Okay, Jacksonville, Florida, Fine, Huntsville, Alabama.
Speaker 2 (20:52):
Number eight.
Speaker 3 (20:55):
Just just put it out there, like you don't really
hear a lot of people talk about Huntsville is like
a burgeoning retire reed destination, but maybe it is. Charlotte,
North Carolina, Sure, Fort Wayne, Indiana. And the next one
really gives you pause. Green Bay, Wisconsin. Now here's the thing.
This is not to say like anything bad about Wisconsin
(21:17):
or Indiana. I actually really like Wisconsin. Only been there twice,
great time each time. Great cheese, great beer, great people,
everything I want in the place.
Speaker 2 (21:25):
Love it. Fort Wayne, Indiana. Never been there.
Speaker 3 (21:28):
I don't know, you know what I would think, Quite honestly,
I just don't know if it's for me. Green Bay
is freaking freezing in the winter. It's not quite Minneapolis,
but it's freezing. And one of the major things that
retirees talk about when they say, hey, like here's what
I want to do in retirement, it's finding ways to
(21:51):
get out of the cold weather, specifically hot weather. We
figured out, hey, you know what you do, you sit
inside with the air conditioning on, or you got your
screen pool in Florida and stuff like. We figured the
cold stuff absent just doing nothing outside at all, which
is kind of impossible.
Speaker 2 (22:10):
It's it's kind of hard.
Speaker 3 (22:11):
So some of these I wonder about, but overall, this
is the list that they've put together.
Speaker 2 (22:17):
New York.
Speaker 3 (22:17):
The biggest problem that I have with it cost of living. Right,
it's really expensive to live in New York, and a
lot of retirees are on fixed incomes that can't get
anywhere near affording a New York City you know, studio
apartment let alone a one or two bedroom, and so
I think it's tough for me to be like, well,
New York City makes it up with, you know, good
(22:39):
health care and lots of stuff to do. Yeah, but
you got to pay like five times the national average
and rent to be able to do that.
Speaker 4 (22:46):
Not to mention, you have most retirees coming from owning
some sort of home for the most part, and not
to overly generalize, but you accustomed to let's say at
least two thousand square feet dropping down to New York.
You're going to have to cut down your square footage
significantly to make that transition. It's interesting the factors that
they list out here, happiness, affordability, healthcare, retiring taxes, desirability.
(23:08):
You do have to have weather, I think in there
it has to be part of the calculation. And then
they have job market.
Speaker 5 (23:14):
Which to me seems a little counterintuitive. But retired the.
Speaker 3 (23:17):
Retiree job market, you know, like, what does that even mean?
Because we all have different things that we want to
do as retirees. Paul, what's your dream retirement job?
Speaker 5 (23:27):
Sitting on the beach?
Speaker 4 (23:28):
No, No, like actually doing a job. Yeah, I thought
this is a good question. Lifeguard, lifeguard. I think everyone says, like, God,
this is not my retirement. I haven't even thought about
that because I just would think I'm not working.
Speaker 2 (23:41):
You ever thought about this once.
Speaker 5 (23:43):
I don't plan to work in retirement.
Speaker 2 (23:45):
You don't even want to do something just to get
out of the house.
Speaker 6 (23:46):
I need something to keep me busy.
Speaker 2 (23:50):
No, okay, Tucker, what about you? What do you got?
Speaker 6 (23:53):
I don't know, like running a small coffee shop or
a diner or something or something like that.
Speaker 2 (23:58):
I want something keep me busy.
Speaker 3 (24:00):
I want to scoop ice cream in the summer and
drive a school bus in the winter.
Speaker 6 (24:04):
No, yeah, I want to be pouring coffee at a
diner and just right, like, you don't shoot in the
s right, what do you have to worry about with
that shot?
Speaker 3 (24:12):
The breeze with people, there's no stress. You're not trying
to make it anywhere. You're just like, hey, I'm good
with this me. I want to scoop ice cream a
few months out of the year, a couple of days
a week, and I want to drive kids to and
from school in the school bus like and you know,
honk the horn and stuff like that.
Speaker 5 (24:27):
Ah.
Speaker 4 (24:28):
Yeah, I'm not not with you, guys. Yeah, I find
my other ways to fill time. Okay, there you go.
In any case, retirement different for everyone exactly.
Speaker 3 (24:36):
And this dovetails nicely into something that I'd like to
tell everyone about the Armstrong Advisory Group, and that the
arm Strong Advisory Group is specifically built to help answer
the questions of hey, what do you want to do
in retirement and how do you actually get there? This
is what our advisors work on, day in, day out
with people is figuring out how to make your retirement
(24:59):
dream actually happen, and so whether you're thinking about moving
to a different city and trying to figure out what
the cost of living is or how you're gonna make
ends meet there, whether you're thinking about retiring next year
and trying to figure out do you have enough money
in order to retire.
Speaker 2 (25:15):
These are the.
Speaker 3 (25:16):
Questions that the Armstrong Advisory Group focuses on every single day.
To schedule an appointment called eight hundred three nine three
four zero zero one, that number again is eight hundred
three nine three for zero zero one. We have offices
all throughout New England. And again, if you're trying to
(25:37):
figure out what to do in retirement, if your retirement
can work for you, that number is eight hundred three
nine three for zero zero one.
Speaker 1 (25:46):
The proceeding was paid for by Armstrong Advisory Group, a
registered investment advisor. Nothing in the ad or in any
Armstrong guide a specific financial, legal or tax advice. Consult
your own financial, tax into state planning advisors before making
any investment decisions. Armstrong may contact you to offer investment
advisory services.
Speaker 3 (26:01):
Comcast announcing early this morning they are moving forward with
a plan to spin off their NBC Universal cable networks.
So this is talking about MSNBC, CNBC, USA E, Sci Fi,
Golf Channel, like there's some properties on there that have
some you know, interesting content, but ultimately they're just not
(26:22):
making much money from them, because well, it's a situation
where you've got people dropping cable and the bundles are
falling apart in this and that, and so Comcast is
trying to figure out what to do.
Speaker 2 (26:36):
With this.
Speaker 5 (26:39):
Go ahead.
Speaker 4 (26:40):
No, it's just an interesting strategy shift that you see
that really very clearly delineating that they see the cable
business as a dying a dying breed, which has been
known for a while, but they're putting money behind it.
Speaker 3 (26:55):
So I think there's another possibility here, okay, and this
is one of them. And this is similar to what
we saw from AT and T, which remember tried to
buy up you know, Direct TV, as well as Warner
Brothers Discovery and figuring out like, hey, we want to
own the way the pipes going into the house and
the content on those pipes.
Speaker 2 (27:12):
That was the whole thing.
Speaker 3 (27:13):
And now companies are like, this is actually kind of bad.
It's it's not working the way we thought. So no,
get rid of the pipes and get rid of the content.
Here's another thought that I had. Though they're saying, look,
we want to spin these assets off, they're still generating
seven billion dollars in revenue. Comcast isn't the only company
that has these assets. What if this is actually a
(27:37):
signal to other companies that might have similar ones. Hey,
you know what, you could sell these to us and
then we'll figure out how to spin them off. I'm
just wondering if Comcast actually wants to acquire more of
this in order to you know, either a keep them
and have better economies of scale with all of the
(27:58):
content for or maybe a streaming platform that can actually
make money now that Disney's figuring out how to do
it as an example, Or do they really want to
get rid of them, because just trying to get rid
of them, I don't I'm still not quite buying that
they're just like abandoning it right away.
Speaker 4 (28:18):
So give me an example as to what Comcasts would
be looking to do in that situation. So you're saying
that they would create others in the industry to spin
off channels that they would then acquire back.
Speaker 3 (28:31):
I'm saying, what if Comcast doesn't actually want to spin
this off, but they're pretending to want to spin it
off so they can actually acquire more channels.
Speaker 4 (28:39):
Outside of the ones that they just spun off. Here
he spun them off yet, Well that they've mentioned spinning off.
Speaker 3 (28:45):
I'm saying, what if they don't actually want to do
the spin off that they're saying they do. Oh So
it's just a it just seems to be And granted
I might just be reading too far into this, but
I'm just wondering if there's something else there, especially you
look at some of these like USA just as an example.
(29:06):
I mean, like again, USA, You've got freaking Law and
Order reruns on all day every There are people who
like you go into some people's houses and there's just
Law and Order SVU going all day every day. CNBC
go into any financial advisor's business, it's on all day
every day. The Golf Channel, you go into Tucker's house
all day every day.
Speaker 2 (29:28):
So there is a way to make money off this.
Speaker 3 (29:32):
They're still generating seven billion in revenue, it's just they're
not monetizing the assets well. And part of me is like, hey,
is it maybe just that they actually want more consolidation
in this space, which I'm not saying would be good
for us overall. But I'm wondering if that's another option
that they're considering.
Speaker 4 (29:48):
So more so a signaling to the market that hey,
we're game to start merging some of these assets with Perhaps.
Speaker 2 (29:54):
Maybe we could do something more with this.
Speaker 3 (29:56):
If you guys are all thinking about spinning your stuff off,
maybe we could actually be the And if it doesn't
work for us, great, we'll still spin it off.
Speaker 2 (30:02):
But maybe we could make it work.
Speaker 5 (30:04):
I don't know, we'll create a new cable.
Speaker 3 (30:05):
I'm probably just reading too much into it. Let's take
a quick break here. We got stack Roulette coming up next.
Speaker 1 (30:11):
Find daily interviews and full shows of the Financial Exchange
on how Are YouTube page. Get caught up on anything
and everything you might have missed. This is the Financial
Exchange Radio Network. Tex Guys six one seven, three, six
two one three eight five with your comments and questions
about today's show. This is the Financial Exchange Radio Network.
Speaker 6 (30:38):
This segment of The Financial Exchange is brought to you
in part by the US Virgin Islands Department of Tourism.
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Saint John. With fall in full swing, now's the time
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(31:00):
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Speaker 5 (31:08):
Go to visit.
Speaker 6 (31:09):
USVII dot com to book your trip. That's visit USVII
dot com.
Speaker 2 (31:14):
Paul, what do you have for me for stack Roulet.
Speaker 4 (31:19):
Employers are getting pressure to pay for drugs drugs like Wigovie, Eli,
Eli Lilly and Nova Nordis. Representatives are going out and
trying to pitch companies on covering the much popularized weight
loss drugs. Eli Lilly is is Manjerno and wigovie is
the regular prescription or ozembic one, which was more for diabetes.
(31:42):
But these drugs have become really popular and they're really expensive.
They cost one thousand bucks a month, and so the
focus of Eli, Lilly and Nova Noordis now has been
going to employers to try and get them on board
with covering the weight loss plans for their employees. There's
a huge subset of the United States population that could
be covered or could go on these drugs, but there's
(32:05):
a huge hesancy from these employers because of the costs
associated with them. Right now, only about half of large
employers cover anti OBC medications, and across smaller employers you
really don't see much of it at all. So this
is truly the next fight that Eli Lilly and Nova
noors have to fight in order to continue to get
(32:25):
the sales growth that they've seen from these really popular
weight loss drugs.
Speaker 3 (32:29):
And look, it's still early with these I mean they've
been they've been utilized for pure weight loss and not
just treatment of diabetes for only a couple of years now.
But the studies that we've been seeing are and I
don't really throw this word around too often, but they're
nothing short of miraculous in terms of the potential improvements
(32:50):
and all cause morbidity.
Speaker 2 (32:53):
It's just it's unbelievable what you are seeing out there.
It really is.
Speaker 4 (32:58):
They have they're testing on other uses for these drugs.
It's it's really powerful what's coming out from them. But
obviously there I was trying to recall, there's some sorts
of lawsuits that have banded together I believe for o zempic,
and so there's going to be trials and tribulations, I guess,
is what I'm getting at. Without knowing the specificities of that,
that lawsuits there and understandably, given the cost and the
(33:22):
potential you know, litigation risks, as an employer, you have
the right to be a little bit hesitant on the
widespread use of this.
Speaker 3 (33:31):
Yeah, I can get it from that perspective. The counter is, Hey,
the stuff that actually, you know, raises costs for us
when it comes to us healthcare. A lot of it
is obesity related, it's heart disease, it's you know, cancers
that have strong correlations with weight and things like like,
it's it's all that stuff that is, you know, tied
(33:54):
pretty closely to weight. And the potential long term savings
out of more widespread usage of these drugs.
Speaker 2 (34:05):
Is potentially huge.
Speaker 4 (34:07):
Yeah, the employers kind of ruthlessly want to kick that
can down the road to medicare just to have them
cover it, you know what I mean.
Speaker 5 (34:14):
Yeah, Like, I get.
Speaker 4 (34:15):
It too, but it is it's not the right thing
to do. But that's that ruthless employer mentality is, Hey,
I only care about Chuck Zada from age you know,
thirty five to sixty or whenever he retires, and then
how any of the long term issues he deals with,
you know, Medicare can figure out the rest.
Speaker 3 (34:32):
The other thing that you do have to remember patents
on US drugs, they're twenty years and we're I don't
know how long exactly into this, but sometime in the
next you know, fourteen fifteen years, you're going to have
generics of these as well. Right, And and the cost
curve even on you know, blockbuster drugs is bent significantly
through generics. You go back, just as an example, when
(34:53):
it first came out in the nineteen nineties, viagra.
Speaker 2 (34:56):
Was like eighty dollars a pill.
Speaker 3 (34:59):
It's like who now you talk about You're talking about
like a ninety percent reduction in cost. You're gonna see
similar things with this as well, just because that's what
happens when you get generic versions that come out. Now,
that doesn't mean the answer is just well, if you're overweight,
now just wait fifteen years. Like, no, that's not really
(35:19):
a good thing, because the data also shows the sooner
that you drop the excess weight, the better you like it.
It's a multiplier effect. It's not just lose it and
you're you're good, it's how early and how soon can
you lose it because it stresses.
Speaker 2 (35:31):
Your body during that that extra time.
Speaker 3 (35:33):
So I look at this and granted, we still don't
have long term studies on potential side effects, and there
are some significant ones that can that can.
Speaker 2 (35:43):
Crop up with this.
Speaker 3 (35:44):
So it's it's not like these drugs are for everyone, hm,
but man, for the people that it works for, the
potential change and the outlook for their long term health
is just huge, and it's it's it's it's it's mind
blowing stuff that we're seeing. Taking a look at markets
as we had towards the middle of the day in
(36:05):
the top of the hour, s and P five hundreds
down eighteen points, Nasdaq down seventy three, but the Dow
is peeking up into positive territory up six points at
the moment here, So we'll see where things go. Remember,
we've got Nvidia reporting after the bell. We're just about
out of time now, but we're gonna be back tomorrow.
(36:25):
We'll tell you everything that happened with in Vidia. And look,
we got a couple hours of show, so I'm sure
we're gonna talk about other things too, but all the
Invidia that you can ask for tomorrow, and a whole
lot more on the financial exchange
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