Let's Talk Money

September 17th, 2023

Episode Transcript

(00:31):
Hello and good morning. You knowthe name of the show is Let's Talk
Money, but it's not always aboutmoney. It's about your health first and
foremost, and then hopefully you haveenough money to do what you want in
retirement. If not, that's whyI'm here every week, every Saturday at
ten, every Sunday at eight tohelp get you pointed in the right direction.

(00:54):
I'll give you my honest opinion,I promise you from the bottom of
my heart. It's what I feelis right for you in whatever the situation
is that you're in. So ifyou have any questions, folks, any
questions whatsoever, give us a call. One eight hundred Talk WGY one eight
hundred eight two five, five,nine four nine. On this gorgeous Sunday,

(01:19):
folks, there's a reason why youbought those sweaters, those beautiful sweaters,
so you can wear them Mondays liketoday, the sun is out,
there's not a cloud in the sky. If you haven't peaked out yet,
it is gorgeous. But before youget up and going, let me thank
you for taking time out of theday to tune in and helping make this

(01:41):
probably one of the country's most premiershows on retirement planning, investment management,
you name it. That's why I'mhere. One eight hundred eight two five
fifty nine forty nine. So thismorning I got my longtime producer back,
Zach Harris. How are you,Zach? Doing very well and better now

(02:01):
that I know that your horse wonyesterday? Oh, Zach, I did.
I did have a winner yesterday.You know, I don't talk a
lot about the horses, but Idid. I owned a horse who raced
in a When you're in in Canadaat Woodbine, the Summer State, Carson's

(02:22):
run came from dead lass, wentas wide as the widest double wide trailer
you could imagine, and one bylike three lengths and I'm going to the
Breeders' Cup, Zach. So thatwas exciting. This is one of the
country's best two year olds and hereally looks good. Carson's Run with Dylan

(02:44):
Davis in the saddle. A localfamily. He has two sisters who are
jockeys. His father was in thebusiness. His sister's husband, Trevor McCarthy's
a jockey. So it was prettyexciting. Thanks for bringing that up.
You know. It was the firstday in my silks. I have a
horse shoe with SB for Stebb andmaybe that horse who brought good luck.

(03:06):
My partner's West Point thorough Bridge,which is a local source locally, they're
they're all around the country, butthey have a lot of partners. I
you know, it was it wasjust blessed to have them as a partner
in this horse. But anyway,thanks Zach, so you're back. Good
to have you. I mean,Tom did a good job yesterday, but
he's not the one and only ZachHarris. Thank you. I appreciate that,

(03:30):
and I'm looking forward to all thephone calls you bring. Oh baby,
well, let's get it started.One eight hundred eight two five five
nine four nine one eight hundred eighttwo five fifty nine forty nine. So
the headlines today, you know,mostly the strikes. You know, you
have the UAW United Auto Workers strikingand obviously that's that that could disrupt the

(03:53):
economy. I said yesterday inflation cameout Tuesday or Wednesday, we had the
big, big report on inflation.And believe me, folks, we were
we were waiting for this report andit ticked up a little bit to three
point seven percent the CPI Consumer PriceIndex. But the core when you take

(04:15):
out food and energy was about fourpoint three and they were expecting four point
seven. Now that's huge, folk, because we can't do anything without food
and energy. You think about it. I mean, our lives do not
exist without food and energy. Sothey're the big culprits. The reason why

(04:35):
that CPI number was three point sevenpercent. You know, the price of
gas just a couple of years agowas closer to two dollars a gallon,
and last year it went up toalmost five dollars a gallon. And here
we sit just under four dollars agallon. Now, folks, that's almost
that's almost double what people were payingjust a couple of years ago, that

(04:57):
alone. And I said yesterday,there's a lot, a lot of people
that just can't afford that extra tentwenty thirty dollars a week in gas.
They can't afford it. And thoseare the people that my heart goes out
for, you know, I sayit often. I in the community,
I try try try my best tohelp out people that I feel are in
need. And you know, II searched them out, I look for

(05:23):
them, and I try to trymy best to help them as best I
can. I carry around a bunchof Walmart gift cards and now Stewart's gift
cards, because you know there's aStewart's almost on every corner Walmart you have
to get to. And a lotof these people, you know, they're
they're they're providing for their families.So I do my best to help them.

(05:46):
If I'm at a gas pump andI see somebody who may only be
putting ten dollars into their gas tankthat we know takes fifty sixty dollars to
fill it up, and I sensethat they can't afford to fill it up,
I'll actually fill it up. Forthose are little things that I try
to do. But I guess whatI'm saying is the price of gas alone,
So that CPI report at three pointseven percent, the price of gas

(06:11):
alone is enough to really have people. Even though you know, unemployments still
fairly fairly low. It's not historiclows, but unemployment rate is fairly low.
A lot of people have jobs.A lot of people are working two
and three jobs as well. Rememberthat, but a lot of people have
jobs. And I say this,and I say it often, I sound

(06:33):
like a broken record. I'm sorry, but minimum wage we were fighting a
few years ago before COVID that,you know, they wanted to f the
FED wanted to you know, kindof formalize a minimum wage of you know,
ten, twelve, fifteen dollars anhour. I guess what, folks,
COVID fix that problem. And now, companies, if if you're not

(06:57):
hiring somebody at close to fifteen dollarsan hour, they're not coming to work
for you. You have companies likeConstco, Target, Walmart, Amazon starting
at fourteen dollars all the way upto eighteen nineteen dollars an hour. Just
a few years ago those jobs wereeight nine, ten dollars an hour.
So COVID because of being able torecruit good workers, they were forced to

(07:25):
increase what they're paying their workers,give them better benefits, give them more
flexibility, treat these workers who aren'tmaking a whole lot of money with respect.
There's nothing wrong with that. AndI say it, and I know
I'll upset some business owners out there. I'm okay. If if publicly traded

(07:46):
companies don't make as much money becausethey're paying their people more, or small
businesses, you know, they maynot have as much of a profit,
but more times than now, it'sthese workers who are just scre raping by
that make a business successful. Soenergy and food, a lot of people

(08:07):
can afford that extra whatever it takesto fill their gas tank going through you
know, market thirty two slash pricedropperor not being able to afford the added
cost of groceries. And you know, I said, put your sweater on
today, it's going to be agorgeous day. But a little nip in
the air, nothing wrong with that. And it's nice to show off those

(08:28):
nice sweaters you have. But theheating bills are going to be coming soon.
And people are still paying more thanthey were, but thank god,
they're not paying as much as theywere a year ago. And that's the
trend that makes this is why I'moptimistic that the Fed probably won't raise interest

(08:50):
rates. They're meeting Tuesday and Wednesdayprobably won't raise interest rates, nor should
they. It takes a year,year and a half from the first interest
rate hike for that to be feltin the economy. So here we are
really just a year and a halfafter the first of eleven interest rate hikes.
The Fed hike interest rates eleven times, folks, So we're just that

(09:15):
a year and a half mark overthat first hike. So let's see home
plays out in the economy. Ifwe can come in and stave off a
deep recession and we don't have tolay off millions and millions and millions of
workers, folks, that's a winwin, win win. So the Fed,

(09:35):
they worked hard to hold off inflation. Inflation came down from nine point
one last June to three percent thisJune, and we're creeping back up the
three point seven. But that's becausegas is almost still double where it was
just a few years ago, andfood inflation is about six percent, so

(09:58):
much more than and overall inflation,and that's why that that CPI number is
three point seven, but the corewhen you strip out food and energy,
is only four point three. Sothe headlines today is the UAW striking,
and that's going to send a rippleeffect through the economy. GM already said

(10:18):
they have to lay off two thousandmore workers because they can't get the product,
so they there's nothing for these workersto do, and you're going to
see this trickle down effect from thisstrike, and there's going to be more
of these folks. And I don'tthink they you know, I wonder if
they all really want to strike,or if there's a peer pressure that if

(10:39):
you don't strike, you're not oneof us. And I hate to say
that, but they're being I mean, they offer on the table. It's
pretty pretty pretty good, you know, these aren't these jobs? Are are
our six figure jobs now with goodbenefits and you know, a lot of
flexibility. So that's the big headline. How long will the UAW strike last?

(11:05):
And then you had the Writer's Union. Hey, listen, you're staying
in more the summers behind us.You're you're trying to watch your favorite show
on Netflix or wherever, and youcan't because the writers on strike. So
there's the shows are repeats. Soyou know, striking striking workers. And
what I worry about is that thesebig car companies may say, hey,

(11:28):
enough is enough is enough. Wefeel we're being fair. We're just going
to take these jobs and move itto Mexico or China or other parts of
the world where it's more affordable,and that we don't want to happen.
Listen, We've worked hard to geta lot of people on the payroll and
working. We're gonna take a quickfifteen second break one eight hundred eight two

(11:50):
five five nine four nine one eighthundred eight two five fifty nine forty nine.
Give me a call with any questionsyou may have. Thank you,

(12:11):
folks for letting me take that quickbreak to take a sip of my coffee.
I'm sitting in our Saratoga office todayright on Broadway, and I'm telling
you, I'm looking outside and I'mlooking at all that's going on at the
Hotel of Delphi and the Starbucks.Our office is directly across the street from

(12:31):
Starbucks. We occupy the entire thirdfloor above where Eddie Bauer is but now
Piper Boutique, which is a phenomenaldress store. Nothing that I can buy
there, but maybe something that youcan buy there. But anyway, we're
the whole entire front half of thatthird floor is our office is. And

(12:54):
that's what I'm doing the show todayfrom. Sometimes I doing at Troy,
sometimes the dude in Saratoga. It'sit's it all depends what my mood is
today. I was in a moodfor Saratoga. One eight hundred eight two
five five nine four nine one eighthundred eight two five fifty nine forty nine.

(13:16):
Any questions, folks, give mea call. I would love to
talk to you. An interesting headlinethis week. You know, a lot
of you. You know Bill Gross, Bill Gross's you know, he was
at PIMCO forever and ever and ever, and he was like the bond guru.
And you know Bill Gross was youknow, if you wanted to talk

(13:37):
bonds, you you wanted to listento what Bill Gross was saying. And
he was considered the bond king.He made headlines this Monday. He was
at a conference and he said thatJeffrey Gunlock doesn't manage enough money at Double
Line to deserve that title. JeffreyGunlock right now thinks he's the bond no

(14:01):
King, and he runs Total Line, which is a mutual fund, not
a mutual fund. It is amutual fund. We use the ETF version,
but it's it's it's in our portfolio. It you know, it's a
good holding for us. Ryan myson heads our investment committee, and he's

(14:22):
looking at these all all the time. But for the for the most part,
it's it's a good, well rounded, let's say, core type mutual
fund. If you look at theat the performance here to date, we're

(14:43):
up about one one point oh eightpercent and that compares to the egg agg
which is the really bond index that'sup a half a percent. But we're
getting a five percent yield on thisright now, actually five point five one
percent yield on this ETF right nowon behalf of our clients. You know,

(15:07):
last year, I've been saying itoften. Last year was that perfect
storm. Bonds were down as muchas stocks. This fund was down about
eleven almost twelve percent last year.The bond index was down about thirteen fourteen
percent. So it did not doas as bad as the bond index,

(15:28):
and it's doing better than the bondindex as we sit here. But Jeffrey
Gunlock and Bill Gross they're they're kindof going at it. They're really,
you know, punching it out.So Jeffrey Gunlock, he was asked about
it, and he says, who, I just don't care. It's odd
that someone who has been out ofthe business for ten years is still trying,

(15:52):
I guess to exercise their their demons. So they are really going head
to head. But Gunlock, youknow, he basically he's he's investing in
mortgage backed securities, floating rate loans, long duration bonds, and that's kind
of what he believes in. Atthe moment, whereas Bill grows forty percent

(16:12):
of his stock portfolios in a limitedmaster limited partnership, which basically these are
investments that own oil and natural gaspipelines. They pay a pretty good dividend.
The Larian MLP is yielding about eightpercent, the Energy Transfer is yielding

(16:33):
about nine percent. But remember thesecome with risk. And I say that
because if you read about these andyou say, geez, I wonder if
I should have that in my portfolio. They come with risk. So when
you go back in, you knowtwo and fourteen, you know the these

(16:56):
did well. But in two thousandand fifteen, you know the are in
Etffel twenty six percent, twenty sixpercent. It turned point seven percent annually
over the last ten years, pointseven percent annually over the last ten years,
compared to the stock market, whichif you look, I know,

(17:19):
I give the fifteen year number allthe time at almost twelve percent, but
the ten year numbers twelve point nineteenpercent. So here, you know,
even though they're paying a decent dividend, you still would have been better off
in the stock market. So Iguess what I'm trying to point out is,
you know what it was a funnystory about these two bond gurus,

(17:40):
and believe me, these are twoof the bigger names when it comes to
fixed income in bonds. These twobond gurus are going at it with each
other and kind of heckling each other. But when when it comes to your
portfolio, it's not all just aboutdividend yields, folks. You can't buy

(18:00):
an investment just for dividend yields becauseif you're getting a good yield, then
you're taking on risk. The keyis to find out what's the risk that
you're taking on. One eight hundredeight two five five nine four nine.
One eight hundred eight two five fiftynine forty nine. Any questions. I
would love to talk to you onthis Sunday morning, Sunday, September seventeenth.

(18:26):
Time is flying by, That's that'sfor sure. One eight hundred eight
two five fifty nine forty nine.So you know, when you think about
dividends, you know just some bignames, you know, big, big
big names, right Verizon, that'sa big name. Remember you know you're
maybe your parents or grandparents, aregreat grandparents own these mob bell companies.

(18:48):
They had the stock certificates, theyleft them in the dresser drawer. They
did nothing with them. They gota nice dividend, while you're getting a
nice dividend almost eight percent dividend.Well that sounds pretty good, right,
but year to date you're down almostfifteen percent when the SMP is up sixteen
percent. So how good of aninvestment is that? You look at a

(19:11):
company like you know, if youwant healthcare Walgreens almost a nine percent dividend,
it's down forty percent year to date. How about an old stalwarts like
IBM almost a five percent dividend,it's only up three point six percent year
to date. You know, yougot all these great companies and they may

(19:37):
pay a good dividend three M youknow, six percent dividend, right,
you go through the grocery store aislesthat you're you're buying a three M product
here or there or wherever. Downsixteen percent year to date, you know
one of the You know, youtake a company like Intel, it's only
got a one point three two percentdividend, but it's up almost forty four

(20:02):
percent year today. So don't findan investment just for its dividend, because
that dividend can really come back andand hurt you and you don't want to
be hurt with your investments. That'swhy you really want to have a well
diversified portfolio. You don't want tobe taking on any more risk than you

(20:26):
need to. You want to haveI listen. We manage for clients for
money for clients, and we haveclients that young professionals, up and coming
stars to you know, very matureretirees. And we we are We don't

(20:51):
have one client that doesn't own stock. Now that's a double negative. Every
one of our clients has stocks andtheir portfolio somehow someway. We have different
strategies that we manage. We havewhat we call capital preservation, which is
only you know, about thirty percentinvested in the stock market. We're really

(21:14):
looking to preserve the capital. Wedon't have anybody in that strategy. We
have a conservative strategy forty percent stock, sixty percent bonds and alternative assets in
cash, and we have some ofour clients are there. Most of our
clients are in our growth and incomestrategy, which is a sixty forty glens
sixty percent stock, forty percent bonds, alternative assets in cash. We have

(21:40):
a lot of retirees in that strategy. Our growth strategy, believe it or
not, eighty twenty. A lotof our retirees are in that as well,
as they say to me, Steve, the reason why we had this
wealth is because we were invested forgrowth through all these years, and we
understand and that the market goes up, the market goes down. You drive

(22:03):
that point home all the time thatyou will lose money. You'll lose money
for a day, a week,a month, sometimes a whole year like
last year. But over time,stocks is the best performing asset class.
When you look at stocks, youlook at bonds, you look at commodities,
real estate, or cash. Thoseare all different asset classes. Stocks

(22:25):
has historically outperformed all other asset classes. So stocks isn't anything to be afraid
of. What you have to becareful about is not to have knee jerk
reactions and panic when there's there's there'sthose emotional, cut wrenching headlines in the
paper the stock market. Listen,it's not going to zero. The world's

(22:48):
not going to fall apart. Volatilitycomes with being invested, and if you're
a good investor, any money thatyou need over the next twelve to twenty
four months should not be invested inthe stock market. You really should have
that money off to the side sothat when, not if, when that
next stock market correction or bear marketor recession happens, you don't have to

(23:11):
worry. It will not affect yourretirement years. You're listening to Let's Talk
Money, brought to you by Bouchefand ant Grip, where we help our
clients prioritize their health while we managethe wealth for life. Give us a
call any questions you have one eighthundred eight two five five nine four nine.
See you on the other side ofthe news break. Hello, folks,

(24:03):
Thanks for hanging in through the newsand thank you for tuning in today.
I can't thank you enough. Ilove doing the show, love helping
get you pointed in the right direction. And if you have any questions,
any questions whatsoever pertaining to your financialout look, please give me a call.
One eight hundred talk w g Y. That's one eight hundred eight two

(24:25):
five, five nine four nine.One eight hundred eight two five fifty nine
forty nine. Let's go to thephone mines where we have Carrie and Nisky
Una. Good morning Carrie, Goodmorning Steve. You know the early bird
gets the worm. Where are allthese people taking your expertise, advice,
you financial guru wizard. I don'tknow why they're all up right and early

(24:47):
just to talk to you. AndI hate to make this the Carry and
Steve show, but you know what, if they're not going to be up,
I am and you know how muchI love you. Oh man.
I know I touched on this thelast time I called you, but I
just I wanted to verify it becausemaybe I didn't touch on it. So
I do have a four row threeB in Voya and I want to move

(25:07):
it. But instead of moving it, I'm thinking of just not contributing to
it as much, or maybe downto fifty dollars and putting the rest that
I was going to put in thatinto a Vanguard fund IRA or even find
a four row three B Vanguard fundto put my money into until I retire.

(25:32):
I'm kind of thinking that's the wayto go because I like Vanguard a
little better, the fees will bea lot better, and then eventually when
I retire, I can avoid takingwell, you know, getting hit by
those transfer fees to go from theVoya to the Vanguard. And before you
we end this call in case Iforget to say this at the end,
will you just tell my husband Joeyou could say it out loud, because

(25:53):
I'm sure he's listening. Listen towhat Carrie says because I told her what
to do, because I told youI'm the one that had all the money
that I moved from his TSP intothe C Fund and really the S and
P the C Fund. Those arecompanies everybody buys. If people, you
know, get the notion to lookat them, Christmas is coming, I'm

(26:15):
sure that's gonna boost up by itselfjust because of purchases. But you know,
people don't want to listen, andthey're not smart enough to get up
early in the morning to listen toSteve Bouchet. That's not our problem.
Oh Carrie, carry carry thing.I mean, you're making me blush.
You know, there's a lot ofpeople that listen, and you know,

(26:36):
and I know, and I knowthey're listening because they really come and they
see me, they talk to me, tap me on the shoulder and say
I know your voice, so Iknow I know they're listening to it.
A lot of people are shy,they're not as out going as you are.
Carrie, and Joe. Remember that. Listen, happy white happy white
man, oh Man, listen tocarry Joe. But no, what you

(26:57):
want to do is only I don'tknow how much you earn or how old
you are, but if if youhave it, if you're not putting away
more than sixty five hundred dollars intoyour pension playing your FOURTL three B.
I actually do like the idea ofgoing with the Vanguard, Irara, because

(27:18):
the fees and those BOYA, that'san annuity. That's nothing other than an
annuity. And you know how Ifeel about annuities. And I know there's
a lot of insurance agents that arelistening to me that are saying, oh,
Steve's taking money out of my pocket. I make six percent commission when
I sell these annuities. Come on, Steve, stop talking bad about annuities.

(27:38):
I just don't believe in them.I'm not saying they're not right for
some people. I just don't believein them. And I hate the way
they're sold because when you walk downthe halls of a school or a hospital,
which is where a lot of theFOURIL three b's are sold. Basically
in a non for profit world,a lot of times you have your choice
of these annuities like boy up ormaybe a Fidelity or a Vanguard or a

(28:03):
Schwab, and you absolutely want togo in that direction. So if you
can't afford to put away, welllet me ask you this. You don't
have to tell me how old youare. Are you older than fifty?
Oh? Yeah, no, I'msixty one. We talked, Oh man,
sorry, oh god, I amno last week? So so but
with people, and maybe I shouldjust buckle up and just swallow the funds

(28:26):
and yeah, you move it allto Vanguard. Yeah. Carry. So
you know, if you can putsixty five hundred dollars into an IRA if
you're fifty year old or seventy fivehundred, So if you're not putting more
than that away, then you're goingto get the tax break, whether it's
Vanguard or an IRA or a fouror three B. And the fees are

(28:49):
a lot better than in an IRA. And if you're in a low tax
bracket carry, think about a rothirara, you don't get the tax break.
But boy, that money grows taxDeFord and it's tax free when you
retire, and that bigger tax benefitcomes from when you're retired, and that
yet you have that money that you'redrawing on and it won't be taxed to

(29:12):
you in retirement. One eight hundredeight two five five nine four Night Carrie.
Really she did call me last weekor the week before, and she
really she complimented me. So,I mean I went home. I had
a big head. I was justI was glowing. One eight hundred eight
two five fifty nine forty nine.Let's go back to the phone lines.

(29:33):
We have Bill in Greenville. Hello, Bill, good morning. How are
you see. I'm doing wonderful,but at my age, Bill, every
day I get out of bed,it's a blessing. I thank God for
that alone. Whether it's raining,sunny, snowing, I don't care what
the weather is like. I'm justgrateful to get out of bed. What

(29:53):
can I help you with today?Well, anyway, I have a mutual
five and that is such as sucha run up as actually about twenty five
percent of my overall portfolio. Well, what's the name of it, Baron
Partner's Fun. Oh, it's agreat fun. Yeah, it's got a

(30:14):
lot testlent in it. I knowthat. And as I say, it's
up. I was wanting to theoriginal when it first when it first point
public. I was one of theoriginals trying of it, and what ninety
two I think it came. Andso anyway, I've been having since ninety
two, so I haven't like elevenhundred percent markup run up since then,
and it's now it's about twenty percentor twenty five percent of my overall wealth

(30:38):
from what would you do? Yeah, well, you know you have to
put it in perspective. So ourportfolio all in has total internal management fees
a point two zero percent. AndI say this so often mutual fund The
average mutual fund fees about one percent, notities could be as much as three

(30:59):
percent or more. This Baron's partneron the retail fund is one point seven
percent, So you have a highinternal management fee. And I like Ron
Baron. I used to have himon my radio show. So I've been
doing the radio for twenty eight yearsand Ron Ron used to be one of
my guests. When we used moremutual funds than than we now. We

(31:22):
hardly ever use mutual funds because theexchange trade of funds have been you know,
there's there's everything you could want inan ETF, and they're more transparent
and the cost there's so much less. You know, our core holdings are
point zero three percent and our totalportfolio all in is point two zero percent.

(31:45):
You're paying one point seven percent.Now you have a really really phenomenal
portfolio here. You're to date you'rea forty one percent, but last year
you were down forty three percent.And if you look at the fifteen year
run of this, sixteen point fivepercent, which almost mirror images the Nastack

(32:07):
mirror. I gave this out yesterday. The fifteen year average return year in
year out for Nastac was sixteen almostseventeen percent, just like Barren's partner.
But Barren's partner is really one.It's a very focused portfolio. You don't
you don't have a whole lot ofholdings in there. You know, twenty

(32:30):
three to be exact, and thenumber one holding is Tesla, which is
half of it. That's why youhave such performance because or good performance,
because Tesla did so well. Andthat's why you you you were sucking win
last year because Tesla didn't do sowell. You know, if you look
at the other holdings, you haveco Star, Arch Capital, I,

(32:52):
Decks, Tyett Hotels, Charles Schwab, but Tesla represents forty six percent,
forty six percent, ninety nine percentof the top or ninety nine percent of
the portfolio is made up of thetop ten holdings. So this is what

(33:15):
we call a very active, veryfocused fund. And what you're betting on
is the money manager in this case, Ron Barron. And if you believe
in Ron Barron and he's done agood job for you, then having that
in your portfolio is good. Butyou know, so if this is now
twenty five percent of your overall portfolioand fifty percent of that is in Tesla,

(33:40):
so that means your overall exposure toTesla in your investible assets is about
twelve thirteen percent. That's a lotof money. We say, nobody should
really have more than ten percent inanyone given stock. So you're right there,
you know, a little we wouldbe uncomfortable with that overall, but
I can't argue with you with regardsto how well this fund is done.

(34:05):
And as I said, Ron Baronis one of the you know, he's
truly a diamond and the rough.He's one of those money managers that can
make it happen. And this isyou know, if for a lot of
people they shouldn't be out there pickingstocks. If you want to have a
real, like focused individual stock portfolio, look for some of these focused funds

(34:28):
that you have built, like thisBaron's Partner fund. As I said,
the top ten holdings account for ninetynine percent of the funds. So for
the most part, you are heavilyinvested in ten companies, mostly in Tesla,
but you have a big exposure toTesla. Tesla continues to do well.
And believe me, you know,with this ua W strike, Tesla

(34:52):
looks, you know, like itmay come out the winner because they're not
going on strike and their contract isa lot less than what GM Ford and
and stats I always get tongue tied. Stillantis are going to be paying their
workers. Tesla may be very competitivein this new marketplace because a car is

(35:16):
a car is a car, rightand if you got labor at at one
hundred and twenty dollars an hour orseventy five dollars an hour, that's a
big difference. And this is whysome of these car companies may be shifting
production to Mexico or China or somewhereelse around around the world. But you've
got a lot of Tesla but Ican't. I can't argue with the fact.

(35:38):
Ron Baron he you know, believeme, he and I were buddies.
He was on my radio show manytimes. It's a focus fund.
Be careful, Thank you very much. Hey, you be well, Bill.
Thanks for the call. One eighthundred and eight two five five nine

(35:59):
four nine one eight hundred and eighttwo five fifty nine forty nine. Give
me a call, Folks, ifyou have a question, I can assure
you somebody else will have the samequestion. I like those focus funds,
you know, Listen, I'm notagainst having, uh, you know,
some stocks in the portfolio. Wehave two individual holdings, Apple and Amazon,

(36:19):
and both have have done well forour clients, you know, year
to date. You know, God, they're they're they're doing just just just
fine. Nothing to be, nothingto be worried about. But one thing
that I want to talk about is, you know, it's been it's been
a year for growth more than value. So the SMP is up sixteen percent.

(36:45):
Now if you strip out the threehundred growth companies that make up the
S and P five hundred year todate, they're up twenty three percent compared
to the overall market. At sixteenpercent. And if you strip out just
the value companies year to date twelvepercent compared to you know, the SMP

(37:09):
at at at at sixteen percent.So you know, growth is really driving
home everything that that we see.If you look now over the last year,
value believe it or not, hasoutperformed growth just a little bit.

(37:30):
They're all right there at fifteen sixteenseventeen percent. Over the last two years,
value has done well, up tenpercent compared to growth being down seven
percent over the last two years.And over the last five years, value
up thirty nine percent, the SMPfifty two percent, growth sixty three percent.

(37:53):
So depending on the period of timewe're in, the investing environment that
we're in, depends on where whowill do better, you know, growth
or value, And right now weare we are really growth is continuing that

(38:14):
magnificent seven that I talked about yesterday, but some people feel that the value
may be a place to be.And when you look, you know,
if you look at all the valuecompanies in the SMP, the symbolist sp
y V is in value and youknow, as I say you're to day,
we're up about twelve percent compared tothe S and P sixteen percent.

(38:37):
But when you look at the topten holdings of of these, you know,
well, the top sector is financedat about twenty two percent, Technology
about twenty percent, Retail about tenpercent. And when I believe it or
not, when you look at thetop ten holdings of this fund, it's

(39:01):
it's it's kind of pretty pretty crazy. Some of the names in there,
some names that that you want tothink would would be in there as as
a top ten holding, but itis. Microsoft represents six percent. It's
considered a value holding right now.Amazon represents four percent. It's considered a

(39:23):
value holding. Meta, which isFacebook four percent, Berkshire half the way
we know, is a value holding. That's almost four percent as well.
Then you round it out with JP, Morgan, Chase, Walmart, Cisco,
Salesforce, Bank of American, Comcast. It's not a bad it's not

(39:43):
a bad holding. When when whenwhen, when you think about it,
there's there's nothing wrong with it,low internal management fees, there's it's it's
not a bad holding. Now whenyou compare that to the growth counterpart and
you look at the top ten holdings, and it's funny, bees Meta is

(40:04):
considered a you know, one ofthe magnificent seven. But the valuations of
it, as they said, theS and P still considers it a value
play, whereas you know, it'sit's not a growth play. So when
you look at the growth spyg Applerepresents thirteen percent, Microsoft seven percent,

(40:30):
na videaf five percent, Google betweenboth asset classes about seven percent, Tesla
almost three and a half four percent, and believe it or not, Amazon
straddles both and there's a three percentexposure to Amazon. Right, so think
about that, both Microsoft and Amazonare in both the growth and the value.

(40:54):
That's really the magnificent seven, thosemagnificent seven. There's a reason why
the stock market has done well whenyou look at those magnificent seven, whether
it be Navidia up to two hundredand eleven percent year to date, or
you know, you have Google,you have Apple, Meta, these these

(41:15):
stocks are going through the roof comparedto the equal weight. The equal weight
is you know, not doing aswell. When when when you compare the
equal weight up five percent compared tothe SMP sixteen percent, And as they
said, the magnificent seven is justflying through the roof. You know,

(41:38):
they start at the least performer isthirty five percent all the way to two
hundred percent, just seven companies.Seven companies is really responsible for a lot
of the returns this year in themarket force one eight hundred eight two five,
five nine four nine. Zac,let me take a quick fifteen I

(42:00):
can break, don't go anywhere.Folks like jazzy type of music, zag
plays. I like the money songsas well. Zach, what are you
going to talk about on your radioshow today, NFL's King. We're going

(42:21):
to talk some NFL football? Noway, Hey, what do you think
about Aaron Rodgers? Was that justheartbreaking for all those Jets fans and for
Aaron himself. I'll be honest.I never really liked Aaron Rodgers when he
was with the Packers, but thenwhen he went to the Jets and he
was under the spotlight more, Iactually fell in love with him. So

(42:42):
my heart's broken for him. Yeah, I mean three plays just minutes into
the game. That was really heartbreaking. I mean, those think about owning
a business, so think about theJets organization. I think he's guaranteed what
seventy five million dollars a year forthe first two years of his contract,
and I was out he took apay cut Yeah yeah, yeah, wow.

(43:06):
Well, well, good luck withthe show today and for the listening
audience. If you don't realize thatZach really he knows his sports, you
can tell. I mean, Ihave a phase for radio, but Zach
has a voice for radio and hedoes a really great I listened to it
show on Sports What time and howdo people find you? Zach? You

(43:30):
can tune in today at eleven amon Fox Sports nine eighty ninety five point
nine FM. Thanks Steve. Allright, Zach, Well, good luck
with your show but today, ifyou have any questions pertaining to your portfolio
one eight hundred eight two five five, nine four nine, there's not a
silly question, give me a call, any questions whatsoever. It's going to

(43:51):
be a good week. This weekwe have the Federal Reserve Open Market Committee.
They meet Tuesday and Wednesday and theycome out. So Wednesday at about
two o'clock they'll come out and they'llsay what they're doing. Will they lower
rates, keep rates the same,or increase rates. If I were a

(44:12):
betting man, I would say theyare going to keep rates just where they're
at. And they've been talking.You know, listen, the Fed is
probably one of the best schoolyard bulliesthere is out there, and they've been
talking tough for a long time.But I think they're realizing that all their
hard work and effort of hiking interestrates staving off inflation has worked. Inflation

(44:40):
came from nine point one all theway down where in a three percent range
it works. The trend is goingin the right direction. So I think
they're going to pause, and there'sa forty percent chance that they may have
to lower rates later in a year, maybe December. I don't think that's

(45:00):
going to happen. Folks come back, you know, in December January.
I'll let you know if I wasright or wrong. I don't think it
has to happen. I also didn'tthink we were going to go into a
deep recession. I didn't think weneeded to go into a deep recession.
And I was right on that wedid not need to go into a deep

(45:21):
recession. You know, Listen,the forces of the economy took care of
it for the FED. We havea lot of people that are working.
They don't need to be laid off. Months ago, the FED was talking
about we can't stave off inflation unlesswe have unemployment at five to six percent,

(45:42):
which means millions and millions and millionsof people have to lose their job.
Well, guess what, we haveunemployment under four percent. We have
a lot of people employed in goodpaying jobs because most of the jobs out
there today are better jobs than theywere just a few years ago before COVID.
So I don't think that the FEDhas to drive us into a deep

(46:07):
recession. I don't think. I'mhoping that millions and millions and millions of
people don't need to lose their jobs. And I don't think we're going to
even have a you know, ifwe do have a recession, it will
be shallow, what we call asoft landing, you know, being on
a plane and having the pilot justcome in for a soft landing. Hey,

(46:32):
we got John on the phone.Mines, John, go ahead real
quick, maybe I can fit youin. Well, come to tell me
about bonds. I don't understand bonds, all right, John, great question.
I talk often about bonds. Bondsright now, you got short term
yielding almost five point six percent,long term four point three. I like

(46:53):
bonds. Right now, folks,you're listening to let's talk money. Brought
to you by Bouche if Nance Group, where we help our clients prioritize their
health while we manage their wealth forlife. Thank you for listening. Come
back next week. Go to ourwebsite from more information Booshey dot com.
Enjoy your Sunday