Episode Transcript
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Speaker 1 (00:00):
J mallum ba Daves bad Daves now travel? How malum
bad Daves bad Davis now travel? How malo ba Daves
bad Dave. Yeah, it's pretty clear. I am a sad,
but I can't shake it, shake it like I'm supposed
to it.
Speaker 2 (00:19):
Well, good morning, folks. That's the perfect song to start
out sack because after this week, it's not all about
that basis. Megan Trainer says, it's all about terriffs. This
week was all about tariffs. The past few weeks have
been all about tariffs. This was the week where it
all came to fruition. There's no more secrets. I don't
(00:42):
know why. Investors were a little shocked that the tariffs
went into effect and that they were what they were.
The President has been warning us for weeks that it
was going to happen, and it happened, and the markets
did not like it. Markets all around the world got
hit and hit. It was not a pretty week on
(01:02):
the markets. Blood in the streets. That's what this week was.
And we now are officially the SMP is about seventeen
percent off. It's high, so real close to a bear market. Remember,
correction is when the markets fall ten percent a bear
(01:23):
market is when the markets fall twenty percent from their
highs so s and p off about seventeen percent from
it's high. Now's not go off about twenty percent officially
in a bear market. Bear market territory. Now you may
be asking, am I worried? Absolutely not. I'm not worried whatsoever.
(01:45):
This comes with the territory of investing, and you just
have to listen. Sometimes you just have to forget that
you own stocks. If you've been taking our advice here
at Bouchet Financial Group, my colleagues and I every weekend
when we do the radio, we tell you you need
to take one to two years worth of your needs.
(02:07):
If you're living off money out of your portfolio, one
to two years worth set it aside so that when
weeks like this happen, you don't freak out. The world
is not coming to an end. The market is recovered
from every correction, every bear market, every recession that's ever
(02:28):
come its way. I'm pretty sure the market's going to
recover from this money as well. So if you have
up to two years worth of your needs set aside,
that gives you two years to let the markets kind
of settle down, let the desk, dost settle, and you know,
all of a sudden you'll scratch your head and say, geez,
(02:50):
I don't know why I was so worried. You know,
this is okay. I've seen this before, folks. It was
an ugly week. It's been an ugly few weeks. But
don't don't don't make any knee jerk reactions. Don't do
anything crazy that will affect your portfolio long term. And
(03:10):
if you have any questions, any questions whatsoever on this cold, dismal,
wet morning. And I appreciate you tuning in. I truly
can't thank you enough for tuning in every weekend Saturdays
we're on at ten and Sunday morning said eight, I
thank you for tuning in. But if I can help
you out with anything that's on your mind financially speaking,
(03:33):
one eight hundred talk WGY. That's one eight hundred eight
two five fifty nine forty nine. Any questions whatsoever, folks,
give me a call. I would love, love, love to
talk to you. So you know, as I said, listen,
there's there's there's there's no getting around this. You know,
(03:55):
global stocks fell. You know, basically President Trump called the
Liberation Day about the tariffs. He wants to square up
the world, wants to get this great country of ours
on the level playing field of every other country. If
somebody's taxing us, if we have trade deficits, then he
(04:18):
wants to make sure that we are playing on the
same playing field. And I'm not sure that's bad, folks. Actually,
to be honest, my personal opinion, long term, I think
it's going to be good for this country. Short term,
there's going to be pain. There's going to be pain,
and we need to just live through the pain because
(04:39):
I think we'll come out at the other end. It's
just my personal opinion. Three six, nine months from now,
I'll reflect back to this opinion. I'll let you know
if I was right or wrong. Hopefully I'm right on this.
I just feel that, you know, we've been taking advantage
of as a country for a long time in this presence,
(05:00):
looking to turn that around. Is there anything wrong about that?
Is there anything wrong with bringing jobs back to this country,
putting people to work, letting them make a decent living.
I know we've been buying cheap goods from countries like China,
Vietnam and other countries, but why can't we produce those goods.
Why can't we buy instead of cheap stuff from those
(05:22):
other countries, why can't we buy it in this great
country of ours. And that's what this president's trying to do.
So these short term pain I think will have long
term gain and I'm hoping on that. I'm optimistic on
the stock market long term. I still believe the stock
(05:43):
market will be higher by the end of the year
than where it was. I think we'll crawl out of
this hole that we dug ourselves in. So we had
Liberation Day, gold rose while Treasury slipped and the US
stock market, the broad stock mark at the SMP lost
four point six percent for the quarter, Nastak eight point
(06:05):
three percent, Navidia down nineteen percent, Tesla down thirty six percent.
The tariff announcements ten percent on all imports more for China, Vietnam, Japan,
and other European Union as a whole, not Russia though,
or on chips. So the chip sector got got kind
(06:27):
of saved, and the SMP. You know, listen, it was
an ugly week. There's retaliation. China came back and said
they're going to have a thirty four percent terif on
US goods. And now the negotiations begin. Remember this president
wrote a book, The Art of the Deal. Remember that
(06:48):
he knows how to negotiate, which is why I'm not
worried long term. And I'm not sitting here being a Trumpster.
I'm just saying this president knows how to go toe
to toe, knows the knows mono mono against any leader
around the world, and he'll put this country first, first,
and foremost. This country will be protected at the end
(07:10):
of the day. He's not afraid of that, and that
is good for our country. So for the week, it
was an ugly week. For the week, the Dow down
eight percent, SMP down nine percent, NASDAK down ten percent.
So there you have it. Not a pretty week. Year
to date, the SMP is down about fourteen percent, Nasdaq
(07:33):
is down nineteen percent, QQQ down seventeen percent, Russell two
thousand down eighteen percent. Ugly, ugly start of the year.
It felt good the first couple of months, and then
March came along and you know, listen, we got the
Final four last night and we'll have the championship game
(07:55):
on Monday night. But that's happening in April. The Sweet
sixteen in March. You know, the markets were not celebrating
as much as a lot of these college teams were.
Gold is off it's high. You would have thought gold
would have gone up this week, right. Gold's high was
set not too long ago at thirty one forty and
(08:18):
it closed at thirty twelve threeenty twelve dollars three twelve
dollars an ounce. Oil down a little bit, down the
sixty one to ninety nine sixty two dollars a barrel.
Mortgage rates came down a little bit because interest rates
obviously are down. You have you know, when you when
you look at the bomb market, the ten uere came down.
(08:42):
A lot of people just basically took money out of
stocks and went to safe haven's light treasuries. So here
we had the US ten uere yielding just about four percent,
just a smidgeon under four percent. You know, not too
long ago it was just a smidgeon over five percent.
But we're down just a smidgeon under four percent. For
(09:04):
ten year US treasury, if you look at the six month,
you're going to get about four point one one, one
year three point eight, five, five year three point seven,
and a ten year just about four percent. So there
you have it. Crypto is down, you know, eighty two
dollars for bitcoin. If you want to look at bitcoin,
it was over one hundred thousand dollars not too long ago.
(09:28):
You know, this is just a good old fashioned correction.
Remember you've heard me say this often over the last
forty six years. The market high to low, peak, the
trough fourteen percent swing. So here we have a seventeen
percent swing. The SMP is off seventeen percent from the high,
(09:48):
so just a little bit above average. But I think
will be okay if you have any questions, if you're worried,
the phone lines are open. One eight hundred eighty two
five five nine four nine. That's one eight hundred eighty two,
five fifty nine forty nine. Zach, let me take a
quick fifteen second break. I'll be right there with you, folks.
(10:11):
Don't go anywhere. Nice Jersey music. Thank you, folks. I
made myself a little cup of coffee and I wanted
to just take a little sip. I thank you for
letting me do that, and thank you again for tuning
in one eight hundred eighty two five five nine four nine.
(10:36):
Any questions whatsoever. So you know, we had a oh god,
an ugly couple days. Ugly, ugly, ugly couple days. So
let me give you some stance, all right, you know
the worst two day down twenty five percent. You remember
October nineteenth, nineteen eighty seven, Blackday, Black Monday, Those two
(11:02):
days were ugly down twenty four percent. One year later
the markets were up twenty eight percent. Go back to
March twelfth, twenty twenty, the markets were down fourteen percent.
One year later sixty two percent. Go back to two
thousand and eight, November twenty, two thousand and eight, markets
(11:24):
were down about twelve percent. Guess what a year later,
up forty nine percent. So we had the fifth worst
two day drop, down ten point five percent the SMP.
And where will be a year from now, I don't know,
but I'm pretty sure I'm looking at the top ten
two day drops, and one year later the markets were
(11:45):
up every single one of them. One year, three year,
five year, the markets were up every single one of
those ten year periods, ten year two day declines. So listen, folks,
you know those were the ten biggest two day declinents
for the S and P. And this was the you know,
(12:06):
this was a biggie, right, you know, down ten point
five percent. It doesn't feel good, but hey, it is
what it is, and we just have to remember that
it's it's it's what it is, and we'll get through this.
The markets listen. As I said, I don't know why
(12:27):
so many investors were surprised. This was the best well
advertised shocked to the market that we've ever seen. So
we shouldn't have been surprised, right, We should have expected this.
You know, we've been listening to tariffs, tariffs, tariffs. It's
like that Megan trainer that Zach let us in. It's
(12:49):
all about the base, all about the base, all about
the base, It's all about tariffs. So there's no surprise.
Why are investors getting so panicky and having knee jerk reactions?
And for those investors that can't take it anymore and
that are selling, I feel so sorry for them because
they are selling probably at the absolute worst time. Now,
(13:13):
that doesn't mean the markets won't be down this coming week.
They could very well be down this coming week. They
could be down the next few weeks, maybe even the
next month or two. I don't know. I don't have
a crystal ball, but I know that as countries start
coming to the table and negotiating with President Trump, and
(13:35):
we start being on a more level playing field, that
the tariffs won't sound as bad. And what's wrong with
us getting revenue from other countries? Revenue that we've been
shortchanged on. And if we can get more revenue and
we can reduce that thirty seven trillion dollar budget. Thirty
(14:00):
seven trillion dollar budget, there's twelve zeros in trillion. That's
a lot of money. This country is in debt, and
every time interest rates go up, we have to pay
our interest expense alone is through the route. When interest
rates were down near two percent, it was one thing.
(14:21):
Now that interest rates when it was five percent, it's
a whole different picture. So we went from five down
to four. And there's a part of me that thinks
that President Trump would love to see interest rates come
down more because that's less money we as a country
has to pay to the people who own our bonds.
(14:42):
Right now, the US ten year treasury's yielding four percent.
If it's yielding three percent, that means we're only paying
out three percent to those bond holders. And remember, countries
like China and Japan own more of our debt. Basically
they are financing our is well debt more than anybody
(15:03):
else by buying our bonds. They're giving us money and
we have to pay them interest. That's how it works.
So as interest rates come down, it helps the deficit.
We're living behind the eight ball. We're living well beyond
our means. That means that we are spending more money
(15:24):
as a country than we're taking in every year, year in,
year out. That's why we have thirty seven trillion dollars
a debt one eight hundred eighty two five five, nine,
four nine. Give me a call, folks, any questions. I'm
going to go to the phone lines right now and
talk to Carlos in Kingston. Hello, Carlos, So.
Speaker 3 (15:46):
What's your position on love the Magnificent seven stocks? You
like Amazon and you like the other one, the Apple.
What's position?
Speaker 2 (16:00):
Yeah? Well I like them both, and believe me, I
didn't like them this week. There are top holdings, and
you know you got ear to date, you got Apple
down about twenty five percent. You got Amazon down about
twenty two percent, So they're not doing too good. I
can tell you that, Carlos, all, all of the Magnificent
(16:24):
seven is down as much, if not more than the market.
That's probably not a bad thing. They've had inflated stock
prices for a couple of years now. It's the reason
why the markets have done as well as they've done
because of the Magnificent seven, made up of Apple, Amazon,
NA Video, Microsoft, Tesla, Google Meta. I mean, holy moly,
(16:48):
Tesla's down, you know, from it's high about fifty percent.
And if you like Tesla, heck, you'd be better off
buying it now then just a few months ago go
when it was fifty percent higher. Right, that's how you
have to think, folks. If you like Google, it's down
here to date thirty percent. Well, if you like Google,
(17:09):
you wanted to put Google in your portfolio, put it
in now you know, may go down more. I don't know.
I don't have a crystal ball. I just I don't know.
But I do know that these Magnificent seven, these companies
are good companies. The only one that's in question is
Tesla right now. Obviously, we see what's going on around
(17:32):
the country and it's crazy. I just had this conversation
last night with a friend. I said, don't think about
the green policy right that was backed by the Democrats,
right even in New York Our governor wanted us to
be completely green. No gas cars, no gas stoves, nothing,
(17:56):
nothing other than you know, clean energy. Right, So who's
buying most of these Tesla cars? I'm guessing a lot
of people that believe in that green energy. And you
got these thugs just damaging grand larceny, right, damaging these cars,
these Tesla cars because of Elon Musk. Now, listen, Elon
(18:18):
Musk isn't doing anything bad, folks, he is Listen, how
many millions of people were getting a Social Security check
that were over one hundred and twenty years old? Come on,
is that a bad thing that he's rooted that out?
Speaker 4 (18:36):
It killed it and stopped It's what's bad about that?
How many people were creating fraud and getting social Security
checks one hundred and twenty years old. It took him
hours and.
Speaker 2 (18:52):
Days to find out that, and the people running Social
Security couldn't find it out. That was their job to
be efficient. Come on, is that a bad thing that
he is looking for a waste in our government to
reduce the deficit, which eventually will reduce the debt that
(19:15):
this country has. Remember, if we spend a trillion dollars
more year in year out on average one to two
to three trillion dollars. If we're going in debt that
gets added on to that thirty seven trillion dollars, that
means we'll be thirty eight trillion, forty trillion and more
(19:36):
in debt. So if he can save us a trillion
dollars here and a trillion dollars there, there's nothing wrong
with that. What's wrong with this country? What the heck
is wrong with this country? Do we want fraud? Do
we want do we want politicians that have taken advantage
(19:58):
of the US taxpayer? Remember, folks, we elect these people.
They go to Washington and all they care about is
getting re elected. There should be term limits. It's the
only thing the Founding Fathers did wrong. They didn't put
term limits in for every part of government. Term limits.
(20:19):
Just like the president has term limits, our politicians need
to have term limits. That is that I think is
the biggest, biggest mistake the Founding Fathers made, And hindsight,
everything's crystal clear. By not having term limits, they have
(20:40):
hurt us because we have politicians in Washington. How can
you be a public servant making a measley and I
don't don't take this the wrong way folks. What I
mean by Measley is how can you make one hundred
two hundred thousand dollars a years of public servant and
be most time millionaires? That's what I mean. If you're
(21:04):
making a million dollars a year, I can see how
you can be a multi millionaire. How can Chuck Schumer
have eighty million dollars of network? I'll bet you a
dollar to donuts. The bartender AOC has a networth a
whole lot higher than when she was bartending, and she's
not making that much money. How do these politicians accumulate
(21:28):
all this wealth? I don't know, but I know they
should go in, serve a term or two and then
have somebody fresh come in. That's the biggest root of
our problems. So what's wrong with Elon Musk looking for
waste and looking to trim that? And I'm not being
political when I make that statement. One I think he's
(21:50):
and I've said this for years, So I'm not saying
this because now he's in charge of DOZE Department of
Efficiency Government Efficiency. I'm not saying that because of that.
I've said it for years. The guy is brilliants. He's
brilliant for what he's done. And you know, here he's
helping out the country by looking for waste, and he's
(22:13):
already found billions and billions and billions of dollars of waste. Listen,
when you own a business, you don't let that happen.
How can politicians let it happen? Because it's not their money.
That's the biggest difference. They're spending our money, taxpayers, that's
the money that politicians in Washington are spending. They're not
(22:36):
spending their money. So I'm all in favor of somebody
rooting out the waste in the fraud and getting rid
of it. And yes, once again, there's going to be pain.
There's going to be people that you know, maybe not
having a job because of the waste. And there's listen,
(22:59):
eleven minutillion job openings out there. Anybody who wants a
job can have a job. Remember that, folks, you're listening
to Let's talk money brought to you by Bouchet Financial Group,
where we help our points prioritize their health while we
manage their wealth for life. If you have any questions,
one eight hundred eight two five, five, nine four nine,
(23:22):
I'm gonna take a quick break for the News one
eight hundred eight two, five fifty nine forty nine. Give
me a call.
Speaker 1 (23:29):
Because you know, I'm allowed bad Daves bad daves now shovel.
I'm mallum ba daves ba daves now travel. I'm mallum
ba daves ba dabas now shovel. I'm mallowed ba daves.
Speaker 2 (23:43):
You know, I kind of like this song, you know, Zach,
it's do you remember the parody a few years ago
the family did all about that that that based around
Thanksgiving dinner and it was pretty cool and it gets
in your and you just can't get it out. But
folks were using that song because it's all about terrffs,
(24:07):
and it's you know, it's all about terraffs. That's what's
going on in the marketplace. That's why we're feeling the
volatility that we're feeling. Listen, it's not because of the economy. Well,
the jobs report came out Friday. We added more jobs
than anybody thought. So there's it's all about tariffs. That's
(24:32):
that's that's what's going on. And when when when things
settle down, when it dost settles, we're going to look
back and say, wow, what a buying opportunity that was,
and that's what I believe when there's blood in the streets.
Remember you've heard me say this often. I've been doing
radio now for thirty years. I've been with you and
(24:57):
I love being with you. Years I've been saying, when
there's volatility, use it to your advantage. Don't be scared.
It comes with the territory of investing. Do not sell
because of volatility. If you have a well diversified portfolio,
maybe sell some losers to get into some stocks that
(25:20):
you've always wanted to own. Like Carlo's question about the
Magnificent Seven, if you ever wanted to own any of those,
buy them now. Heck they're down and down big time
from their highs, all of them. And it breaks my
heart because Apple and Amazon are two of the Magnificent seven,
and there are top holdings. But I believe in those
(25:43):
companies and I believe they'll come back. Apple got especially
hit hard because of China and so that Amazon, you know,
with with global commerce. But I think they'll come back.
One eight hundred and eighty five five nine four nine.
Thank you for tuning in, folks. If you have any questions,
(26:04):
give me a call. The phone lines are open one
eight hundred and eighty five fifty nine forty nine. Let's
go back to the phone lines where we have John
on all Hello, John.
Speaker 5 (26:16):
Good morning.
Speaker 2 (26:18):
How are you.
Speaker 5 (26:20):
I'm doing good him listening to you. I'm into my
truck right now, but I listen to you, and like
in the last fifteen minutes, you had more to say
than anybody ever has said on the radio, and it
ought to be broadcast to every soul in this country, because, man,
you are right on the money.
Speaker 2 (26:40):
Well, I appreciate those comments. I mean, it comes from
my heart. I believe what I say. It's nothing political.
I believe, don't talk I don't talk politics. It's common sense.
It's logical. It just it's rational to think the way
I'm thinking. I'm I'm not politicizing this. It's common sense.
(27:03):
So it comes from my heart.
Speaker 5 (27:05):
What the problem is, it is not too much common
anymore and sense.
Speaker 2 (27:10):
Yeah, Well, the problem is term limits. The problem is
we got to get rid of people that have served.
If there's any way of changing the constitution and we
can put in term limits, I think it would be
the best thing that ever happened in this country. And
there may be some politicians listening who have served term
(27:31):
after term after term after term after term, and I
like them. There's some I like a lot, But enough
is enough. Go get a real job. Stop living off
the taxpayers and spending the taxpayers money. Go get a
real job and see what it feels like to have
to work for a living.
Speaker 5 (27:51):
You know, two years old, and I've had a lot
of jobs, and I've always had this in mind, and
I've said this more than once. You should never have
a job more than ten years, because johnfre you need
to go out and.
Speaker 2 (28:08):
John, I've owned my business for thirty five years. You
can't say that. What would I do the last twenty
five years?
Speaker 5 (28:17):
There's always been exception to everything.
Speaker 2 (28:21):
Hey, John, thank you for the call, Thank you for
your comments. Okay, you be well, stay healthy. One eight
hundred and eighty two five five nine four nine. Let's
go back to the phone lines we have ed in Troy,
my hometown. How are you ed?
Speaker 6 (28:39):
Great? Hey, I'm the term limit thing. I'm assuming the
all the federal politicians are on the TSP system like
every other federal employee for retirement. My feeling is that
when you sign up and you get elected, you can
only contribute to the TSP and what you've already had
(29:02):
as an investment. So say, if you have apple stock,
that's the only thing you can buy because there's too
much insider trader going on. Nobody neither side of the
aisle wants to commit that for term limits. But they
all seem to be millionaires, like you've said, and the
average Joe can't become a millionaire that fast. And they
(29:25):
get all this, you know, inside tips and all, and
even there they have their spouse buying if they can't.
So there should be something written in and they somebody
keeps the need to keep bringing it up. You can
only contribute to the TSP and what you've had in
investments prior to becoming a politician, not get all this
(29:49):
new stuff that you find out about and you get
the inside tip and Bengal, you're a millionaire overnight.
Speaker 2 (29:57):
Well, as I said in the first half of the
sho show, how do you go from being a public
servant your entire life? You know, Nancy Pelosi supposedly you
know networth between eighty seven and two hundred and two
million dollars. Mitch McConnell networth between three million to over
(30:20):
thirty four million, that's how much his net worth has
increased living working as a public servant. I mean, are
you kidding me? How does that happen? You know, Richard Blumenthal,
you know his networth is over one hundred million dollars.
How does that happen? How can they make that kind
(30:44):
of money? You know? Elon Musk reveals those's new target
members of Congress who got strangely wealthy his quote, not mine,
strangely wealthy. And I believe that how do these people
become so rich being a public servant? You know, the
(31:04):
whole idea of being a public servant is give back
to your community, help make it better, and then go
back to working in the private sector. That's what being
a public servant should be. As I said, that's the
only thing that I wish we could go back a
couple hundred years, a few hundred years and change our
(31:27):
founding fathers. I wish put in term limits for every politician. Anyway,
That's that's my take on it, Ed, But you make
a good point. Thank you, Ed for your comments. One
eight hundred eighty two five five nine four nine, one
eight hundred eighty five fifty nine forty nine. I just
(31:48):
don't understand it. I don't understand how these politicians can
get so so rich. So you know, I gave you
the statistics tenets dropped, two day drop in the market
going back to nineteen fifty, one year, three year, five
years later. Guess what the markets were up. So you know,
(32:10):
if you don't panic, Remember, if you panic and you sell,
then you're going to lose money. You're basically taking that
paper loss because it's really just on paper, and you're
making it a real loss because you're selling, which means
when the market bounces back, and it will when it
bounces back, you're not going to bounce back with it.
(32:31):
You're going to take your money because you ran scared.
You put it under the mattress, or you put it
into gold, which was down this week, or you put
it into treasury bonds, wherever you put it because you
think it's safer. All of a sudden, when the stocks
bounce back, you're going to kick yourself. You're going to
kick yourself for getting scared. Don't get scared, folks. If
(32:55):
you have the proper mix of stocks to bonds. You
know that volatility comes with being an investor, and when
it happens, you shouldn't have panic. You shouldn't have had
those knee jerk reactions. One eight hundred eight two, five, five, nine,
four nine. Let's go to the phone lines where we
have Susie on hold.
Speaker 6 (33:16):
Hello, Susie, Hello, how are you today?
Speaker 2 (33:21):
Well? I'm doing wonderful, Susie. How are you.
Speaker 7 (33:24):
I'm doing wonderful too. I listen to your radio station
morning afternoon, night in the week, middle of the hours.
Speaker 2 (33:35):
Well, thank you for being such a loyal Yeah, thank
you for being a loyal listener.
Speaker 7 (33:42):
How do I play the game to win money?
Speaker 2 (33:46):
Oh, hey, Susie, listen. Thank you for for listening. Do
you have a question for me?
Speaker 7 (33:55):
How do I say the game to win town?
Speaker 2 (33:59):
Oh, Susie, I'm gonna let you go, but thank you
for calling. Thank you for listening. I don't know what
game Susie wants to play, but I try not to
play games. You know, we we're produciaries, and we're real
serious about managing our clients' wealth, and we manage it
(34:21):
in a prudent way. That's why my money is invested
exactly like my clients. Exactly like my clients. You know,
it's funny if you work with an advisor tomorrow morning,
call he or she and ask them how their money
is invested. And if they say, you know, basically put
them on the spot. Say do you have the exact
(34:42):
same investments I have? And if they say no, ask
them why why are they recommending one set of investments
for you and another set of investments for them? I
just don't know, you know. I invest my money, and
I can say my advisors same thing. We're invested just
(35:03):
like our clients. We wanted to have it any other way.
Why would we have it any other way if it's
not good. Listen, I went over a year not cooking,
and I've cooked three times in the last week, folks.
And I'm a foodie. I love to cook, so it
feels good to get back in the kitchen. You know,
we could go. I made some lamb shops and I
(35:24):
made a nice risotto with asparacus and scallops. I called
it my QUAISI surf and turf, and I love to
make risotta. I make a mean risotta. You know, there's
a lot of work that goes into risotta, and I
make a mean risotta. There's some secrets to making risotto,
and I liked making risotto so I made that, and
then I made nice you know, I did a nice
(35:48):
marinera sauce with scallops, shrimp, and lobster tail over bucatini,
which I think came out pretty good. And then, you know,
Friday night, I just wanted to relax, so I looked
in my refrigerator to see what I had. So I sawteed,
you know, some pork chops, and I cleaned out the refrigerator.
(36:10):
I had some asparicus I sauteed up, you know, I
salteed some onions, yellow and red peppers to go over
my pork chops, and then you know, a nice, simple
green salad. So it feels good being cooking. But I
guess where I'm going with this is I couldn't imagine
(36:30):
inviting you over for dinner and serving you one thing
and me cooking something else for me. And that's how
I feel about investing. If you call your advisor tomorrow
and they tell you, like my advisors know, if we
have a prospective client that comes in looking to interview
us or an existing client, my portfolio's there for them
(36:55):
this sea. I don't care they can see it. I
actually strongly suggest that anybody who wants to see my portfolio.
My advisors will put it on the screen and they
can see that I'm invested just like they are. The
only difference is and believe me, I had a tough
week this week because I'm one hundred percent in the
stock market. I don't own any bonds. I'm still working,
(37:17):
so in a way, my paycheck is my dividend, right
my interest from working, So I don't need bonds in
my portfolio. I don't plan on using that money in
the next couple of years. I'm knock on wood getting
My health is in really, really a good place, and
(37:39):
I like working. I love what I do. I'm not
going anywhere unless I'm mentally incoonfident. I'm working for a
long time, so I don't mind being invested in the
stock market. I get these figures out often over the
last fifteen years, and that includes the market being seven
(38:00):
eighteen percent off. It's high. The average return year in
year out for the S and P is fifteen or
I'm sorry, twelve percent. The average return for NASDAK seventeen percent.
The average return for bonds over the last fifteen years
two point four three percent. So I believe in stocks
(38:23):
over time. I don't panic. I don't have knee jerk reactions. Actually,
I'm gonna be honest with you. Tomorrow, I'm going to
look for some cash and I'm going to put that
cash into the market. I'm going to take advantage of
the S and P being seventeen percent off it's high,
and NASAC being twenty percent off it's high. It doesn't
(38:46):
scare me one bit, not one bid. It doesn't scare me. Actually,
I get giddy about it, and then I'll forget about it,
and then before I know it, the stock market will
be back to where it was. And guess what, it'll
be back making new all time highs. What's you wrong
(39:08):
with that? When there's blood in the streets, that's when
you invest, that's not when you sell. Now, that doesn't
mean the markets won't go down this week. They could
very well go down this week and next week and
the week after. I don't know. I don't have a
crystal ball. I got a nice cup of coffee that
I made, but I don't have a crystal ball. One
eight eight, two five, five nine four nine. If you
(39:30):
have any questions, let's go back to the bull mine.
We have Lisa in Delmar, Hello, Lisa, Hello, I.
Speaker 8 (39:38):
Have a question regarding finances and taxes. Please, Okay, just
finishing up my taxes for twenty twenty four and I'm
getting hammered, hammered with capital gains and dividends and in
putting my ten oney nine I T ten A nine
DI IV forms. Yeah, I can't believe what I'm looking
(39:59):
at what's coming on my pay I'm talking about tens
of thousands of dollars.
Speaker 6 (40:03):
So I have all of.
Speaker 8 (40:05):
My non taxable accounts maxed out, you know, HSA four
or one K five, twenty nine, et cetera, and I'm
still getting hammered with taxes. Do you recommend anything other
than the tax office harvesting approach, which I don't know
how to do that, but for just a novice investor
prior to hiring a financial advisor, do you have a
(40:27):
just any strategies to sable little bit on taxes? Yes,
Treasury YEP.
Speaker 2 (40:35):
So basically, so, what you want to think about is
your taxable accounts, Lisa. You want to have stocks in
your taxable accounts, stocks that you plan on owning for
a long time, have your bonds and dividend paying stocks
(40:56):
in your qualified accounts. Those tax those accounts that are
tax deferred, like your iras and four own case and
so forth. Because what happens is when when people have
dividend paying investments basically you know stocks. You know, if
you look at the schwab Us dividend equity, we own
(41:17):
that for our clients right now, it's yielding almost four percent.
That's pretty good. Four percent is actually really good. So
that means if you have one hundred thousand dollars invested
in that, you're going to have four thousand dollars of
dividends that you're going to pay tax on. So if
that's in your IRA, you're not going to pay tax
(41:38):
on it because it's grown tax deferred. What you want
to have is like the SMP and the NASDAC in
your taxable accounts because you know, the S and P
is only yielding you know, under two percent, you know
one point five I think, and NASDAK is minimal. So
those are what we call growth, the growth part of
(42:00):
your portfolio. In this way, you won't have as many
you know, dividends and interest that you have to record
taxes on. So take a look at your makeup. Now
it sounds as though you must have sold a lot
in order to have capital gains. Obviously the dividends and
the interest get paid, so you know, maybe now's the
(42:22):
time to look at that, maybe put the bonds in
that IRA account.
Speaker 8 (42:28):
Didn't say that again, so then you yeah?
Speaker 2 (42:32):
So then you yeah. Do you let me ask you
another question, Do you do you own mutual funds?
Speaker 6 (42:39):
Yeah?
Speaker 2 (42:40):
Yeah, Well there's the problem. This is why we don't
own mutual funds. You know, you could buy a mutual
fund on December first, and they could issue a capital
gains distribution on December second, and you have to pay
tax on that. It's like having a hangover. You never
went to the or went to the party. You got
(43:01):
to listen to my show more often, Lisa, I do.
Speaker 8 (43:04):
But I bought these mutual funds decades ago and I
want to sell them, and to sell them, I just
come up with my cost basis, which I can't, and
I've just been delaying and delaying. But I just want
my mutual funds.
Speaker 2 (43:15):
I am well, it sounds as though, it sounds as
though somehow, some way look into it. This is why
we manage one point five billion, and we manage it
all in ets so that we don't have to worry
about those mutual funds paying off those distributions because it
just I'm guessing that's why you paid so much in
(43:39):
taxes is because of the mutual funds you own and
the bonds that you own. You know that interest, if
you own it, it's paying interest. You're paying tax on
that interest in the saying what they need dividend paying stocks.
So take a look at it. Maybe it behooves you.
Speaker 8 (43:55):
I do listen to your show every week, and I
love your show. These are just some like investments had
for a long time.
Speaker 2 (44:01):
Yeah, but maybe it's time to sell them. Maybe it's
time I sell them with the market being down. There's
no better time. That's what I said in the beginning
of the show, Lisa, There's no better time to take
a dog, sell it with the market being down almost
twenty percent, and put it into something else because it's
twenty percent cheaper. Yeah, get out of those mutual funds.
(44:25):
I don't like them.
Speaker 8 (44:27):
Why neither. And it's hard because I bought them through
a bank. So the bank financial advisor is, you know,
saying we have to come up with the cost base
that I said, it's been twenty years. I'm really struggling,
and I there were only three I ever bought in
my life, and I read I prefer doc ets EFTs
that I did buy a bunch of US treasuries, and
I was excited to save the New York State income
(44:48):
tax until I got hit with.
Speaker 4 (44:52):
Here.
Speaker 8 (44:53):
But I say it here to intero tax in my mind.
Speaker 2 (44:57):
Yeah, but ill I guess.
Speaker 8 (44:58):
To make that money.
Speaker 2 (45:00):
There's some Yeah, there's some really good mutual funds out there.
But that's the problem with mutual funds is they throw
off distributions and you get hit with them and they
hurt and it sounds as though you got you you you,
you got bit by the mutual fund bugs. So now's
the time to analyze it. With the market being down,
(45:22):
you're selling it and if you got big distributions at
the end of the year, that gets added to your
cost basis and somehow make your Listen, the advisor at
the bank made a lot of money selling you these
mutual funds. Make them help you come up with the
cost basis. See what the cost basis is. You're gonna
(45:42):
pay capital gains tax if you sell it. But if
it's time to get into something more efficient, because I
can hear it in your voice. You don't like paying tax,
nobody does. Now's the time to do that. Hey, Lisa,
you had a great question. Thank you for calling. You'd
be well. Enjoy your Sunday. Yeah, we own the Schwab
(46:04):
Us Dividend Equity Fund. It's it's really one of the
best ones to own. There's others, you know, Vanguard Dividend
Appreciation and the Eye Shares Core Dividend. They basically focus
on companies that raise dividends rather than those with the
highest yields. The Schwab dividend. You know, we we have
(46:26):
a lot of money and energy twenty one percent to
be exact, So you got a waiting there that's different
than the Vanguard or the I shares or other dividend
like investments. But that's one reason why we're getting the
yield that we're getting, and we like it and we
(46:47):
think it fits. But you know, Lisa's question is right on,
right on the target, right, you know, she hit the
nail on the head. Hey, folks, you're listening to Let's
Talk Money to You by Bouchef and Introup, where we
help our clients prioritize their health while we manage their wealth.
For life. I can't thank you enough for tuning in.
(47:09):
You know, it's all about teriffs this week. In this
coming week, it'll hopefully start to be negotiations. You'll start
to see these countries, you know, give the President a
call and say, hey Donald, can we talk about this,
And then all of a sudden things will get better. Folks,
I can't thank you enough for tuning in. Go to
our website Bouchet dot com. That's biz and boy o
(47:32):
U c ch e y dot com. We got some
good stuff up there, including our state of the economy.
Have a great day. Come back next week. Bye bye,
J mallum ba Daves bad Daves now travel? How malum
bad Daves bad Davis now travel? How malo ba Daves
bad Dave. Yeah, it's pretty clear. I am a sad,
but I can't shake it, shake it like I'm supposed
to it.
Speaker 2 (00:19):
Well, good morning, folks. That's the perfect song to start
out sack because after this week, it's not all about
that basis. Megan Trainer says, it's all about terriffs. This
week was all about tariffs. The past few weeks have
been all about tariffs. This was the week where it
all came to fruition. There's no more secrets. I don't
(00:42):
know why. Investors were a little shocked that the tariffs
went into effect and that they were what they were.
The President has been warning us for weeks that it
was going to happen, and it happened, and the markets
did not like it. Markets all around the world got
hit and hit. It was not a pretty week on
(01:02):
the markets. Blood in the streets. That's what this week was.
And we now are officially the SMP is about seventeen
percent off. It's high, so real close to a bear market. Remember,
correction is when the markets fall ten percent a bear
(01:23):
market is when the markets fall twenty percent from their
highs so s and p off about seventeen percent from
it's high. Now's not go off about twenty percent officially
in a bear market. Bear market territory. Now you may
be asking, am I worried? Absolutely not. I'm not worried whatsoever.
(01:45):
This comes with the territory of investing, and you just
have to listen. Sometimes you just have to forget that
you own stocks. If you've been taking our advice here
at Bouchet Financial Group, my colleagues and I every weekend
when we do the radio, we tell you you need
to take one to two years worth of your needs.
(02:07):
If you're living off money out of your portfolio, one
to two years worth set it aside so that when
weeks like this happen, you don't freak out. The world
is not coming to an end. The market is recovered
from every correction, every bear market, every recession that's ever
(02:28):
come its way. I'm pretty sure the market's going to
recover from this money as well. So if you have
up to two years worth of your needs set aside,
that gives you two years to let the markets kind
of settle down, let the desk, dost settle, and you know,
all of a sudden you'll scratch your head and say, geez,
(02:50):
I don't know why I was so worried. You know,
this is okay. I've seen this before, folks. It was
an ugly week. It's been an ugly few weeks. But
don't don't don't make any knee jerk reactions. Don't do
anything crazy that will affect your portfolio long term. And
(03:10):
if you have any questions, any questions whatsoever on this cold, dismal,
wet morning. And I appreciate you tuning in. I truly
can't thank you enough for tuning in every weekend Saturdays
we're on at ten and Sunday morning said eight, I
thank you for tuning in. But if I can help
you out with anything that's on your mind financially speaking,
(03:33):
one eight hundred talk WGY. That's one eight hundred eight
two five fifty nine forty nine. Any questions whatsoever, folks,
give me a call. I would love, love, love to
talk to you. So you know, as I said, listen,
there's there's there's there's no getting around this. You know,
(03:55):
global stocks fell. You know, basically President Trump called the
Liberation Day about the tariffs. He wants to square up
the world, wants to get this great country of ours
on the level playing field of every other country. If
somebody's taxing us, if we have trade deficits, then he
(04:18):
wants to make sure that we are playing on the
same playing field. And I'm not sure that's bad, folks. Actually,
to be honest, my personal opinion, long term, I think
it's going to be good for this country. Short term,
there's going to be pain. There's going to be pain,
and we need to just live through the pain because
(04:39):
I think we'll come out at the other end. It's
just my personal opinion. Three six, nine months from now,
I'll reflect back to this opinion. I'll let you know
if I was right or wrong. Hopefully I'm right on this.
I just feel that, you know, we've been taking advantage
of as a country for a long time in this presence,
(05:00):
looking to turn that around. Is there anything wrong about that?
Is there anything wrong with bringing jobs back to this country,
putting people to work, letting them make a decent living.
I know we've been buying cheap goods from countries like China,
Vietnam and other countries, but why can't we produce those goods.
Why can't we buy instead of cheap stuff from those
(05:22):
other countries, why can't we buy it in this great
country of ours. And that's what this president's trying to do.
So these short term pain I think will have long
term gain and I'm hoping on that. I'm optimistic on
the stock market long term. I still believe the stock
(05:43):
market will be higher by the end of the year
than where it was. I think we'll crawl out of
this hole that we dug ourselves in. So we had
Liberation Day, gold rose while Treasury slipped and the US
stock market, the broad stock mark at the SMP lost
four point six percent for the quarter, Nastak eight point
(06:05):
three percent, Navidia down nineteen percent, Tesla down thirty six percent.
The tariff announcements ten percent on all imports more for China, Vietnam, Japan,
and other European Union as a whole, not Russia though,
or on chips. So the chip sector got got kind
(06:27):
of saved, and the SMP. You know, listen, it was
an ugly week. There's retaliation. China came back and said
they're going to have a thirty four percent terif on
US goods. And now the negotiations begin. Remember this president
wrote a book, The Art of the Deal. Remember that
(06:48):
he knows how to negotiate, which is why I'm not
worried long term. And I'm not sitting here being a Trumpster.
I'm just saying this president knows how to go toe
to toe, knows the knows mono mono against any leader
around the world, and he'll put this country first, first,
and foremost. This country will be protected at the end
(07:10):
of the day. He's not afraid of that, and that
is good for our country. So for the week, it
was an ugly week. For the week, the Dow down
eight percent, SMP down nine percent, NASDAK down ten percent.
So there you have it. Not a pretty week. Year
to date, the SMP is down about fourteen percent, Nasdaq
(07:33):
is down nineteen percent, QQQ down seventeen percent, Russell two
thousand down eighteen percent. Ugly, ugly start of the year.
It felt good the first couple of months, and then
March came along and you know, listen, we got the
Final four last night and we'll have the championship game
(07:55):
on Monday night. But that's happening in April. The Sweet
sixteen in March. You know, the markets were not celebrating
as much as a lot of these college teams were.
Gold is off it's high. You would have thought gold
would have gone up this week, right. Gold's high was
set not too long ago at thirty one forty and
(08:18):
it closed at thirty twelve threeenty twelve dollars three twelve
dollars an ounce. Oil down a little bit, down the
sixty one to ninety nine sixty two dollars a barrel.
Mortgage rates came down a little bit because interest rates
obviously are down. You have you know, when you when
you look at the bomb market, the ten uere came down.
(08:42):
A lot of people just basically took money out of
stocks and went to safe haven's light treasuries. So here
we had the US ten uere yielding just about four percent,
just a smidgeon under four percent. You know, not too
long ago it was just a smidgeon over five percent.
But we're down just a smidgeon under four percent. For
(09:04):
ten year US treasury, if you look at the six month,
you're going to get about four point one one, one
year three point eight, five, five year three point seven,
and a ten year just about four percent. So there
you have it. Crypto is down, you know, eighty two
dollars for bitcoin. If you want to look at bitcoin,
it was over one hundred thousand dollars not too long ago.
(09:28):
You know, this is just a good old fashioned correction.
Remember you've heard me say this often over the last
forty six years. The market high to low, peak, the
trough fourteen percent swing. So here we have a seventeen
percent swing. The SMP is off seventeen percent from the high,
(09:48):
so just a little bit above average. But I think
will be okay if you have any questions, if you're worried,
the phone lines are open. One eight hundred eighty two
five five nine four nine. That's one eight hundred eighty two,
five fifty nine forty nine. Zach, let me take a
quick fifteen second break. I'll be right there with you, folks.
(10:11):
Don't go anywhere. Nice Jersey music. Thank you, folks. I
made myself a little cup of coffee and I wanted
to just take a little sip. I thank you for
letting me do that, and thank you again for tuning
in one eight hundred eighty two five five nine four nine.
(10:36):
Any questions whatsoever. So you know, we had a oh god,
an ugly couple days. Ugly, ugly, ugly couple days. So
let me give you some stance, all right, you know
the worst two day down twenty five percent. You remember
October nineteenth, nineteen eighty seven, Blackday, Black Monday, Those two
(11:02):
days were ugly down twenty four percent. One year later
the markets were up twenty eight percent. Go back to
March twelfth, twenty twenty, the markets were down fourteen percent.
One year later sixty two percent. Go back to two
thousand and eight, November twenty, two thousand and eight, markets
(11:24):
were down about twelve percent. Guess what a year later,
up forty nine percent. So we had the fifth worst
two day drop, down ten point five percent the SMP.
And where will be a year from now, I don't know,
but I'm pretty sure I'm looking at the top ten
two day drops, and one year later the markets were
(11:45):
up every single one of them. One year, three year,
five year, the markets were up every single one of
those ten year periods, ten year two day declines. So listen, folks,
you know those were the ten biggest two day declinents
for the S and P. And this was the you know,
(12:06):
this was a biggie, right, you know, down ten point
five percent. It doesn't feel good, but hey, it is
what it is, and we just have to remember that
it's it's it's what it is, and we'll get through this.
The markets listen. As I said, I don't know why
(12:27):
so many investors were surprised. This was the best well
advertised shocked to the market that we've ever seen. So
we shouldn't have been surprised, right, We should have expected this.
You know, we've been listening to tariffs, tariffs, tariffs. It's
like that Megan trainer that Zach let us in. It's
(12:49):
all about the base, all about the base, all about
the base, It's all about tariffs. So there's no surprise.
Why are investors getting so panicky and having knee jerk reactions?
And for those investors that can't take it anymore and
that are selling, I feel so sorry for them because
they are selling probably at the absolute worst time. Now,
(13:13):
that doesn't mean the markets won't be down this coming week.
They could very well be down this coming week. They
could be down the next few weeks, maybe even the
next month or two. I don't know. I don't have
a crystal ball, but I know that as countries start
coming to the table and negotiating with President Trump, and
(13:35):
we start being on a more level playing field, that
the tariffs won't sound as bad. And what's wrong with
us getting revenue from other countries? Revenue that we've been
shortchanged on. And if we can get more revenue and
we can reduce that thirty seven trillion dollar budget. Thirty
(14:00):
seven trillion dollar budget, there's twelve zeros in trillion. That's
a lot of money. This country is in debt, and
every time interest rates go up, we have to pay
our interest expense alone is through the route. When interest
rates were down near two percent, it was one thing.
(14:21):
Now that interest rates when it was five percent, it's
a whole different picture. So we went from five down
to four. And there's a part of me that thinks
that President Trump would love to see interest rates come
down more because that's less money we as a country
has to pay to the people who own our bonds.
(14:42):
Right now, the US ten year treasury's yielding four percent.
If it's yielding three percent, that means we're only paying
out three percent to those bond holders. And remember, countries
like China and Japan own more of our debt. Basically
they are financing our is well debt more than anybody
(15:03):
else by buying our bonds. They're giving us money and
we have to pay them interest. That's how it works.
So as interest rates come down, it helps the deficit.
We're living behind the eight ball. We're living well beyond
our means. That means that we are spending more money
(15:24):
as a country than we're taking in every year, year in,
year out. That's why we have thirty seven trillion dollars
a debt one eight hundred eighty two five five, nine,
four nine. Give me a call, folks, any questions. I'm
going to go to the phone lines right now and
talk to Carlos in Kingston. Hello, Carlos, So.
Speaker 3 (15:46):
What's your position on love the Magnificent seven stocks? You
like Amazon and you like the other one, the Apple.
What's position?
Speaker 2 (16:00):
Yeah? Well I like them both, and believe me, I
didn't like them this week. There are top holdings, and
you know you got ear to date, you got Apple
down about twenty five percent. You got Amazon down about
twenty two percent, So they're not doing too good. I
can tell you that, Carlos, all, all of the Magnificent
(16:24):
seven is down as much, if not more than the market.
That's probably not a bad thing. They've had inflated stock
prices for a couple of years now. It's the reason
why the markets have done as well as they've done
because of the Magnificent seven, made up of Apple, Amazon,
NA Video, Microsoft, Tesla, Google Meta. I mean, holy moly,
(16:48):
Tesla's down, you know, from it's high about fifty percent.
And if you like Tesla, heck, you'd be better off
buying it now then just a few months ago go
when it was fifty percent higher. Right, that's how you
have to think, folks. If you like Google, it's down
here to date thirty percent. Well, if you like Google,
(17:09):
you wanted to put Google in your portfolio, put it
in now you know, may go down more. I don't know.
I don't have a crystal ball. I just I don't know.
But I do know that these Magnificent seven, these companies
are good companies. The only one that's in question is
Tesla right now. Obviously, we see what's going on around
(17:32):
the country and it's crazy. I just had this conversation
last night with a friend. I said, don't think about
the green policy right that was backed by the Democrats,
right even in New York Our governor wanted us to
be completely green. No gas cars, no gas stoves, nothing,
(17:56):
nothing other than you know, clean energy. Right, So who's
buying most of these Tesla cars? I'm guessing a lot
of people that believe in that green energy. And you
got these thugs just damaging grand larceny, right, damaging these cars,
these Tesla cars because of Elon Musk. Now, listen, Elon
(18:18):
Musk isn't doing anything bad, folks, he is Listen, how
many millions of people were getting a Social Security check
that were over one hundred and twenty years old? Come on,
is that a bad thing that he's rooted that out?
Speaker 4 (18:36):
It killed it and stopped It's what's bad about that?
How many people were creating fraud and getting social Security
checks one hundred and twenty years old. It took him
hours and.
Speaker 2 (18:52):
Days to find out that, and the people running Social
Security couldn't find it out. That was their job to
be efficient. Come on, is that a bad thing that
he is looking for a waste in our government to
reduce the deficit, which eventually will reduce the debt that
(19:15):
this country has. Remember, if we spend a trillion dollars
more year in year out on average one to two
to three trillion dollars. If we're going in debt that
gets added on to that thirty seven trillion dollars, that
means we'll be thirty eight trillion, forty trillion and more
(19:36):
in debt. So if he can save us a trillion
dollars here and a trillion dollars there, there's nothing wrong
with that. What's wrong with this country? What the heck
is wrong with this country? Do we want fraud? Do
we want do we want politicians that have taken advantage
(19:58):
of the US taxpayer? Remember, folks, we elect these people.
They go to Washington and all they care about is
getting re elected. There should be term limits. It's the
only thing the Founding Fathers did wrong. They didn't put
term limits in for every part of government. Term limits.
(20:19):
Just like the president has term limits, our politicians need
to have term limits. That is that I think is
the biggest, biggest mistake the Founding Fathers made, And hindsight,
everything's crystal clear. By not having term limits, they have
(20:40):
hurt us because we have politicians in Washington. How can
you be a public servant making a measley and I
don't don't take this the wrong way folks. What I
mean by Measley is how can you make one hundred
two hundred thousand dollars a years of public servant and
be most time millionaires? That's what I mean. If you're
(21:04):
making a million dollars a year, I can see how
you can be a multi millionaire. How can Chuck Schumer
have eighty million dollars of network? I'll bet you a
dollar to donuts. The bartender AOC has a networth a
whole lot higher than when she was bartending, and she's
not making that much money. How do these politicians accumulate
(21:28):
all this wealth? I don't know, but I know they
should go in, serve a term or two and then
have somebody fresh come in. That's the biggest root of
our problems. So what's wrong with Elon Musk looking for
waste and looking to trim that? And I'm not being
political when I make that statement. One I think he's
(21:50):
and I've said this for years, So I'm not saying
this because now he's in charge of DOZE Department of
Efficiency Government Efficiency. I'm not saying that because of that.
I've said it for years. The guy is brilliants. He's
brilliant for what he's done. And you know, here he's
helping out the country by looking for waste, and he's
(22:13):
already found billions and billions and billions of dollars of waste. Listen,
when you own a business, you don't let that happen.
How can politicians let it happen? Because it's not their money.
That's the biggest difference. They're spending our money, taxpayers, that's
the money that politicians in Washington are spending. They're not
(22:36):
spending their money. So I'm all in favor of somebody
rooting out the waste in the fraud and getting rid
of it. And yes, once again, there's going to be pain.
There's going to be people that you know, maybe not
having a job because of the waste. And there's listen,
(22:59):
eleven minutillion job openings out there. Anybody who wants a
job can have a job. Remember that, folks, you're listening
to Let's talk money brought to you by Bouchet Financial Group,
where we help our points prioritize their health while we
manage their wealth for life. If you have any questions,
one eight hundred eight two five, five, nine four nine,
(23:22):
I'm gonna take a quick break for the News one
eight hundred eight two, five fifty nine forty nine. Give
me a call.
Speaker 1 (23:29):
Because you know, I'm allowed bad Daves bad daves now shovel.
I'm mallum ba daves ba daves now travel. I'm mallum
ba daves ba dabas now shovel. I'm mallowed ba daves.
Speaker 2 (23:43):
You know, I kind of like this song, you know, Zach,
it's do you remember the parody a few years ago
the family did all about that that that based around
Thanksgiving dinner and it was pretty cool and it gets
in your and you just can't get it out. But
folks were using that song because it's all about terrffs,
(24:07):
and it's you know, it's all about terraffs. That's what's
going on in the marketplace. That's why we're feeling the
volatility that we're feeling. Listen, it's not because of the economy. Well,
the jobs report came out Friday. We added more jobs
than anybody thought. So there's it's all about tariffs. That's
(24:32):
that's that's what's going on. And when when when things
settle down, when it dost settles, we're going to look
back and say, wow, what a buying opportunity that was,
and that's what I believe when there's blood in the streets.
Remember you've heard me say this often. I've been doing
radio now for thirty years. I've been with you and
(24:57):
I love being with you. Years I've been saying, when
there's volatility, use it to your advantage. Don't be scared.
It comes with the territory of investing. Do not sell
because of volatility. If you have a well diversified portfolio,
maybe sell some losers to get into some stocks that
(25:20):
you've always wanted to own. Like Carlo's question about the
Magnificent Seven, if you ever wanted to own any of those,
buy them now. Heck they're down and down big time
from their highs, all of them. And it breaks my
heart because Apple and Amazon are two of the Magnificent seven,
and there are top holdings. But I believe in those
(25:43):
companies and I believe they'll come back. Apple got especially
hit hard because of China and so that Amazon, you know,
with with global commerce. But I think they'll come back.
One eight hundred and eighty five five nine four nine.
Thank you for tuning in, folks. If you have any questions,
(26:04):
give me a call. The phone lines are open one
eight hundred and eighty five fifty nine forty nine. Let's
go back to the phone lines where we have John
on all Hello, John.
Speaker 5 (26:16):
Good morning.
Speaker 2 (26:18):
How are you.
Speaker 5 (26:20):
I'm doing good him listening to you. I'm into my
truck right now, but I listen to you, and like
in the last fifteen minutes, you had more to say
than anybody ever has said on the radio, and it
ought to be broadcast to every soul in this country, because, man,
you are right on the money.
Speaker 2 (26:40):
Well, I appreciate those comments. I mean, it comes from
my heart. I believe what I say. It's nothing political.
I believe, don't talk I don't talk politics. It's common sense.
It's logical. It just it's rational to think the way
I'm thinking. I'm I'm not politicizing this. It's common sense.
(27:03):
So it comes from my heart.
Speaker 5 (27:05):
What the problem is, it is not too much common
anymore and sense.
Speaker 2 (27:10):
Yeah, Well, the problem is term limits. The problem is
we got to get rid of people that have served.
If there's any way of changing the constitution and we
can put in term limits, I think it would be
the best thing that ever happened in this country. And
there may be some politicians listening who have served term
(27:31):
after term after term after term after term, and I
like them. There's some I like a lot, But enough
is enough. Go get a real job. Stop living off
the taxpayers and spending the taxpayers money. Go get a
real job and see what it feels like to have
to work for a living.
Speaker 5 (27:51):
You know, two years old, and I've had a lot
of jobs, and I've always had this in mind, and
I've said this more than once. You should never have
a job more than ten years, because johnfre you need
to go out and.
Speaker 2 (28:08):
John, I've owned my business for thirty five years. You
can't say that. What would I do the last twenty
five years?
Speaker 5 (28:17):
There's always been exception to everything.
Speaker 2 (28:21):
Hey, John, thank you for the call, Thank you for
your comments. Okay, you be well, stay healthy. One eight
hundred and eighty two five five nine four nine. Let's
go back to the phone lines we have ed in Troy,
my hometown. How are you ed?
Speaker 6 (28:39):
Great? Hey, I'm the term limit thing. I'm assuming the
all the federal politicians are on the TSP system like
every other federal employee for retirement. My feeling is that
when you sign up and you get elected, you can
only contribute to the TSP and what you've already had
(29:02):
as an investment. So say, if you have apple stock,
that's the only thing you can buy because there's too
much insider trader going on. Nobody neither side of the
aisle wants to commit that for term limits. But they
all seem to be millionaires, like you've said, and the
average Joe can't become a millionaire that fast. And they
(29:25):
get all this, you know, inside tips and all, and
even there they have their spouse buying if they can't.
So there should be something written in and they somebody
keeps the need to keep bringing it up. You can
only contribute to the TSP and what you've had in
investments prior to becoming a politician, not get all this
(29:49):
new stuff that you find out about and you get
the inside tip and Bengal, you're a millionaire overnight.
Speaker 2 (29:57):
Well, as I said in the first half of the
sho show, how do you go from being a public
servant your entire life? You know, Nancy Pelosi supposedly you
know networth between eighty seven and two hundred and two
million dollars. Mitch McConnell networth between three million to over
(30:20):
thirty four million, that's how much his net worth has
increased living working as a public servant. I mean, are
you kidding me? How does that happen? You know, Richard Blumenthal,
you know his networth is over one hundred million dollars.
How does that happen? How can they make that kind
(30:44):
of money? You know? Elon Musk reveals those's new target
members of Congress who got strangely wealthy his quote, not mine,
strangely wealthy. And I believe that how do these people
become so rich being a public servant? You know, the
(31:04):
whole idea of being a public servant is give back
to your community, help make it better, and then go
back to working in the private sector. That's what being
a public servant should be. As I said, that's the
only thing that I wish we could go back a
couple hundred years, a few hundred years and change our
(31:27):
founding fathers. I wish put in term limits for every politician. Anyway,
That's that's my take on it, Ed, But you make
a good point. Thank you, Ed for your comments. One
eight hundred eighty two five five nine four nine, one
eight hundred eighty five fifty nine forty nine. I just
(31:48):
don't understand it. I don't understand how these politicians can
get so so rich. So you know, I gave you
the statistics tenets dropped, two day drop in the market
going back to nineteen fifty, one year, three year, five
years later. Guess what the markets were up. So you know,
(32:10):
if you don't panic, Remember, if you panic and you sell,
then you're going to lose money. You're basically taking that
paper loss because it's really just on paper, and you're
making it a real loss because you're selling, which means
when the market bounces back, and it will when it
bounces back, you're not going to bounce back with it.
(32:31):
You're going to take your money because you ran scared.
You put it under the mattress, or you put it
into gold, which was down this week, or you put
it into treasury bonds, wherever you put it because you
think it's safer. All of a sudden, when the stocks
bounce back, you're going to kick yourself. You're going to
kick yourself for getting scared. Don't get scared, folks. If
(32:55):
you have the proper mix of stocks to bonds. You
know that volatility comes with being an investor, and when
it happens, you shouldn't have panic. You shouldn't have had
those knee jerk reactions. One eight hundred eight two, five, five, nine,
four nine. Let's go to the phone lines where we
have Susie on hold.
Speaker 6 (33:16):
Hello, Susie, Hello, how are you today?
Speaker 2 (33:21):
Well? I'm doing wonderful, Susie. How are you.
Speaker 7 (33:24):
I'm doing wonderful too. I listen to your radio station
morning afternoon, night in the week, middle of the hours.
Speaker 2 (33:35):
Well, thank you for being such a loyal Yeah, thank
you for being a loyal listener.
Speaker 7 (33:42):
How do I play the game to win money?
Speaker 2 (33:46):
Oh, hey, Susie, listen. Thank you for for listening. Do
you have a question for me?
Speaker 7 (33:55):
How do I say the game to win town?
Speaker 2 (33:59):
Oh, Susie, I'm gonna let you go, but thank you
for calling. Thank you for listening. I don't know what
game Susie wants to play, but I try not to
play games. You know, we we're produciaries, and we're real
serious about managing our clients' wealth, and we manage it
(34:21):
in a prudent way. That's why my money is invested
exactly like my clients. Exactly like my clients. You know,
it's funny if you work with an advisor tomorrow morning,
call he or she and ask them how their money
is invested. And if they say, you know, basically put
them on the spot. Say do you have the exact
(34:42):
same investments I have? And if they say no, ask
them why why are they recommending one set of investments
for you and another set of investments for them? I
just don't know, you know. I invest my money, and
I can say my advisors same thing. We're invested just
(35:03):
like our clients. We wanted to have it any other way.
Why would we have it any other way if it's
not good. Listen, I went over a year not cooking,
and I've cooked three times in the last week, folks.
And I'm a foodie. I love to cook, so it
feels good to get back in the kitchen. You know,
we could go. I made some lamb shops and I
(35:24):
made a nice risotto with asparacus and scallops. I called
it my QUAISI surf and turf, and I love to
make risotta. I make a mean risotta. You know, there's
a lot of work that goes into risotta, and I
make a mean risotta. There's some secrets to making risotto,
and I liked making risotto so I made that, and
then I made nice you know, I did a nice
(35:48):
marinera sauce with scallops, shrimp, and lobster tail over bucatini,
which I think came out pretty good. And then, you know,
Friday night, I just wanted to relax, so I looked
in my refrigerator to see what I had. So I sawteed,
you know, some pork chops, and I cleaned out the refrigerator.
(36:10):
I had some asparicus I sauteed up, you know, I
salteed some onions, yellow and red peppers to go over
my pork chops, and then you know, a nice, simple
green salad. So it feels good being cooking. But I
guess where I'm going with this is I couldn't imagine
(36:30):
inviting you over for dinner and serving you one thing
and me cooking something else for me. And that's how
I feel about investing. If you call your advisor tomorrow
and they tell you, like my advisors know, if we
have a prospective client that comes in looking to interview
us or an existing client, my portfolio's there for them
(36:55):
this sea. I don't care they can see it. I
actually strongly suggest that anybody who wants to see my portfolio.
My advisors will put it on the screen and they
can see that I'm invested just like they are. The
only difference is and believe me, I had a tough
week this week because I'm one hundred percent in the
stock market. I don't own any bonds. I'm still working,
(37:17):
so in a way, my paycheck is my dividend, right
my interest from working, So I don't need bonds in
my portfolio. I don't plan on using that money in
the next couple of years. I'm knock on wood getting
My health is in really, really a good place, and
(37:39):
I like working. I love what I do. I'm not
going anywhere unless I'm mentally incoonfident. I'm working for a
long time, so I don't mind being invested in the
stock market. I get these figures out often over the
last fifteen years, and that includes the market being seven
(38:00):
eighteen percent off. It's high. The average return year in
year out for the S and P is fifteen or
I'm sorry, twelve percent. The average return for NASDAK seventeen percent.
The average return for bonds over the last fifteen years
two point four three percent. So I believe in stocks
(38:23):
over time. I don't panic. I don't have knee jerk reactions. Actually,
I'm gonna be honest with you. Tomorrow, I'm going to
look for some cash and I'm going to put that
cash into the market. I'm going to take advantage of
the S and P being seventeen percent off it's high,
and NASAC being twenty percent off it's high. It doesn't
(38:46):
scare me one bit, not one bid. It doesn't scare me. Actually,
I get giddy about it, and then I'll forget about it,
and then before I know it, the stock market will
be back to where it was. And guess what, it'll
be back making new all time highs. What's you wrong
(39:08):
with that? When there's blood in the streets, that's when
you invest, that's not when you sell. Now, that doesn't
mean the markets won't go down this week. They could
very well go down this week and next week and
the week after. I don't know. I don't have a
crystal ball. I got a nice cup of coffee that
I made, but I don't have a crystal ball. One
eight eight, two five, five nine four nine. If you
(39:30):
have any questions, let's go back to the bull mine.
We have Lisa in Delmar, Hello, Lisa, Hello, I.
Speaker 8 (39:38):
Have a question regarding finances and taxes. Please, Okay, just
finishing up my taxes for twenty twenty four and I'm
getting hammered, hammered with capital gains and dividends and in
putting my ten oney nine I T ten A nine
DI IV forms. Yeah, I can't believe what I'm looking
(39:59):
at what's coming on my pay I'm talking about tens
of thousands of dollars.
Speaker 6 (40:03):
So I have all of.
Speaker 8 (40:05):
My non taxable accounts maxed out, you know, HSA four
or one K five, twenty nine, et cetera, and I'm
still getting hammered with taxes. Do you recommend anything other
than the tax office harvesting approach, which I don't know
how to do that, but for just a novice investor
prior to hiring a financial advisor, do you have a
(40:27):
just any strategies to sable little bit on taxes? Yes,
Treasury YEP.
Speaker 2 (40:35):
So basically, so, what you want to think about is
your taxable accounts, Lisa. You want to have stocks in
your taxable accounts, stocks that you plan on owning for
a long time, have your bonds and dividend paying stocks
(40:56):
in your qualified accounts. Those tax those accounts that are
tax deferred, like your iras and four own case and
so forth. Because what happens is when when people have
dividend paying investments basically you know stocks. You know, if
you look at the schwab Us dividend equity, we own
(41:17):
that for our clients right now, it's yielding almost four percent.
That's pretty good. Four percent is actually really good. So
that means if you have one hundred thousand dollars invested
in that, you're going to have four thousand dollars of
dividends that you're going to pay tax on. So if
that's in your IRA, you're not going to pay tax
(41:38):
on it because it's grown tax deferred. What you want
to have is like the SMP and the NASDAC in
your taxable accounts because you know, the S and P
is only yielding you know, under two percent, you know
one point five I think, and NASDAK is minimal. So
those are what we call growth, the growth part of
(42:00):
your portfolio. In this way, you won't have as many
you know, dividends and interest that you have to record
taxes on. So take a look at your makeup. Now
it sounds as though you must have sold a lot
in order to have capital gains. Obviously the dividends and
the interest get paid, so you know, maybe now's the
(42:22):
time to look at that, maybe put the bonds in
that IRA account.
Speaker 8 (42:28):
Didn't say that again, so then you yeah?
Speaker 2 (42:32):
So then you yeah. Do you let me ask you
another question, Do you do you own mutual funds?
Speaker 6 (42:39):
Yeah?
Speaker 2 (42:40):
Yeah, Well there's the problem. This is why we don't
own mutual funds. You know, you could buy a mutual
fund on December first, and they could issue a capital
gains distribution on December second, and you have to pay
tax on that. It's like having a hangover. You never
went to the or went to the party. You got
(43:01):
to listen to my show more often, Lisa, I do.
Speaker 8 (43:04):
But I bought these mutual funds decades ago and I
want to sell them, and to sell them, I just
come up with my cost basis, which I can't, and
I've just been delaying and delaying. But I just want
my mutual funds.
Speaker 2 (43:15):
I am well, it sounds as though, it sounds as
though somehow, some way look into it. This is why
we manage one point five billion, and we manage it
all in ets so that we don't have to worry
about those mutual funds paying off those distributions because it
just I'm guessing that's why you paid so much in
(43:39):
taxes is because of the mutual funds you own and
the bonds that you own. You know that interest, if
you own it, it's paying interest. You're paying tax on
that interest in the saying what they need dividend paying stocks.
So take a look at it. Maybe it behooves you.
Speaker 8 (43:55):
I do listen to your show every week, and I
love your show. These are just some like investments had
for a long time.
Speaker 2 (44:01):
Yeah, but maybe it's time to sell them. Maybe it's
time I sell them with the market being down. There's
no better time. That's what I said in the beginning
of the show, Lisa, There's no better time to take
a dog, sell it with the market being down almost
twenty percent, and put it into something else because it's
twenty percent cheaper. Yeah, get out of those mutual funds.
(44:25):
I don't like them.
Speaker 8 (44:27):
Why neither. And it's hard because I bought them through
a bank. So the bank financial advisor is, you know,
saying we have to come up with the cost base
that I said, it's been twenty years. I'm really struggling,
and I there were only three I ever bought in
my life, and I read I prefer doc ets EFTs
that I did buy a bunch of US treasuries, and
I was excited to save the New York State income
(44:48):
tax until I got hit with.
Speaker 4 (44:52):
Here.
Speaker 8 (44:53):
But I say it here to intero tax in my mind.
Speaker 2 (44:57):
Yeah, but ill I guess.
Speaker 8 (44:58):
To make that money.
Speaker 2 (45:00):
There's some Yeah, there's some really good mutual funds out there.
But that's the problem with mutual funds is they throw
off distributions and you get hit with them and they
hurt and it sounds as though you got you you you,
you got bit by the mutual fund bugs. So now's
the time to analyze it. With the market being down,
(45:22):
you're selling it and if you got big distributions at
the end of the year, that gets added to your
cost basis and somehow make your Listen, the advisor at
the bank made a lot of money selling you these
mutual funds. Make them help you come up with the
cost basis. See what the cost basis is. You're gonna
(45:42):
pay capital gains tax if you sell it. But if
it's time to get into something more efficient, because I
can hear it in your voice. You don't like paying tax,
nobody does. Now's the time to do that. Hey, Lisa,
you had a great question. Thank you for calling. You'd
be well. Enjoy your Sunday. Yeah, we own the Schwab
(46:04):
Us Dividend Equity Fund. It's it's really one of the
best ones to own. There's others, you know, Vanguard Dividend
Appreciation and the Eye Shares Core Dividend. They basically focus
on companies that raise dividends rather than those with the
highest yields. The Schwab dividend. You know, we we have
(46:26):
a lot of money and energy twenty one percent to
be exact, So you got a waiting there that's different
than the Vanguard or the I shares or other dividend
like investments. But that's one reason why we're getting the
yield that we're getting, and we like it and we
(46:47):
think it fits. But you know, Lisa's question is right on,
right on the target, right, you know, she hit the
nail on the head. Hey, folks, you're listening to Let's
Talk Money to You by Bouchef and Introup, where we
help our clients prioritize their health while we manage their wealth.
For life. I can't thank you enough for tuning in.
(47:09):
You know, it's all about teriffs this week. In this
coming week, it'll hopefully start to be negotiations. You'll start
to see these countries, you know, give the President a
call and say, hey Donald, can we talk about this,
And then all of a sudden things will get better. Folks,
I can't thank you enough for tuning in. Go to
our website Bouchet dot com. That's biz and boy o
(47:32):
U c ch e y dot com. We got some
good stuff up there, including our state of the economy.
Have a great day. Come back next week. Bye bye,
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