Episode Transcript
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Speaker 1 (00:00):
Hello, and welcome folks this first weekend of May. I
am Stephen Bouche, your host today, sitting here live. I
welcome you to the show as I do every week.
I can't believe it's been thirty years that I've been
helping out the listening audience with some financial advice and
(00:23):
getting you hopefully pointed in the right direction. That's my
main goal, to give you my honest opinion and you
get more opportunity to retire. I want to make sure
I do my best to help you achieve that goal.
If I do that, then I'll be doing a good
thing for you. The buone mines are open if you
have any questions, any questions whatsoever. One eight hundred Talk
(00:46):
WGY one eight hundred eighty two five five to nine
four nine. So I was off last weekend, as most
of you probably know if you've been listening to the show,
and actually flew into Rome. And I flew in on Monday,
well a week ago Monday to visit with the Pope.
(01:09):
On Tuesday, the Vatican was going to say a Mass
for me, and on Wednesday I had a meeting set
up to meet the Pope in person. Unfortunately, as my
plane touched down in Rome, I found out the news
that the Pope literally just passed away. And it was
a memorable trip for different reasons. And unfortunately, you know,
(01:32):
the mood was so somber, being in, you know, a
Vatican Square and going through Saint Peter's Basilica, and basically
it was just kind of surreal in a way. And
as I said, memorable for different reasons, not seeing the Pope,
but being there during that time, a time now I'll
(01:55):
remember forever, and it's he was a good man. He
was the people's pope. I'm reading his autobiography, which took
six years to write, and he wrote it himself, and
he's really to read this book, a remarkable man. The
name of the book is Pope Francis Hope, and it's
(02:17):
an autobiography. There's two books named Hope, but this one,
will say it's his autobiography. A nice picture of him
on the cover, and you know, whatever your faith is,
it's just a good book to read about a good man,
a man who cared about the people. His last week,
he was not feeling well, and I think in hindsight
(02:39):
everything's crystal clear. As I like to say so on Thursday,
Holy Thursday, he went to the prisons like he always does,
visits the prisoners in a wheelchair. He made sure that happened.
On Saturday, the day before Easter, he went through Saint
Peter Square, and on Sunday, Easter Sunday, he went through
(02:59):
Saint Peter Square again and you know, got out of
his car, met some people, and that's what he does.
And then he passed away, obviously into the early hours
of Monday. So I think he kind of knew and
wanted to be out there and see the people. So
(03:21):
God blessed Pope Francis. May he rest in peace. As
I said, it was a memorable experience. I am here
today and I would love to talk to you. We
got a lot to talk about. It was a pretty
good week in the markets. The markets have recovered from
their lows, which is why you can't you can't freak out,
(03:41):
you can't panic, you can't have knee jerk reactions when
there's volatility. I say it often, And I just had
a nice conversation with the prospective client, longtime listener, who
you know, basically is working with an advisor who does
absolutely nothing for him or does very little for him,
and I told this prospective client just how proactive we are,
(04:04):
how much we communicate. My investment team, led by my
son Ryan, Paulo La Pietra, Ed Wilhelm Casey, BYRD Dave Clark.
My investment team is pretty good. They're very disciplined. We
put a lot of thought into our methodology. Our strategies
are rock solid. I'm invested one percent of my money's invested,
(04:28):
just like my clients. I wouldn't have it any other way.
As I shared with this prospective client, if I'm a foodie, listen,
I love to cook, and there's you know, a couple
of weeks ago, I started cooking again. It's been a
long year that I haven't cooked. So I started cooking
again a couple of weeks ago, and it feels so
good to get back in the kitchen and roll up
(04:48):
my sleeves, turn on the stove and create some dishes.
And if I was inviting you over to the dinner,
I couldn't imagine me cooking something different than what I
was going to cook for you. And I feel the
same way about investing. And I tell this to a
lot of people who will listen to me. When you know,
if you're working with an advisor. On Monday morning, give
(05:10):
here Sha a call and ask them, Hey, are you
invested in the same way I'm invested, And if they're not,
ask them why. I mean, how come they're selling you
this mutual fund or that annuity which you know I'm
dead against, or any other investment, especially life insurance when
you don't need it. Most people need life insurance, but
(05:32):
they don't need expensive life insurance policies. Life insurance is
really for the young, not so much when you're old,
unless you want to lead money to charity or really
make your children rich. You really need life insurance when
you're young, raising your family if something happens to you
or your spouse, in order to have enough money that
(05:53):
you can be able to provide for your family, have
your spouse be able to continue on and take care
of the children and not have to worry about working
two three jobs to make ends meet because one spouse
has passed away. That's what life insurance is for. And
(06:14):
unfortunately a lot of life insurance agents like to sell
these expensive life insurance policies, whole life or universal life
that people can't afford. I always say, if you have
a family, if you don't have at least two million
dollars worth of life insurance, you don't have enough. I
can almost say that, just like I say if you've
never done any retirement planning, and if you're not saving
(06:37):
ten to fifteen percent of your wages your salary, you're
not saving enough. I can almost say that hands down,
and I can prove it if you give me some time.
But I feel the same way about life insurance. If
you're raising a family and you don't have two million
dollars worth of life insurance, you probably don't have enough,
(06:59):
especially if you have a spouse who may not be working,
if there's one spouse working, one spouse not working. Even
in that scenario, and I use myself as an example,
you know my wife, Sue, God bless her. It'll be
almost a year, almost two weeks from now to be
a year that she passed. But when she was young,
(07:21):
she was working part time, raising my family so that
I could work and build my business. And I always
had life insurance on her because if something happened to her,
then I knew that I wouldn't be able to work
the hours that I was working. I knew that when
I came home, I would want to spend it with
(07:43):
my children. I wouldn't want to have to worry about
doing the laundry, mowing the law. I think of all
the things that Sue did around the house, and to
replace all those things that Suit did around the house
costs money. So I always had life insurance on Sue
even though she only worked part time. And obviously I
had a whole lot more life insurance on me, because
(08:04):
if something happened to me, I would want to make
sure that Sue was able to continue raising my children
and not have to worry about the mortgage or her retirement.
I didn't want her to have to remarry or go
out and work two three jobs. So I always had
substantial life insurance on me. And it's hard to afford
(08:25):
that life insurance when you're buying expensive permanent policies, and
unfortunately a lot of insurance agents they sell these policies
with the promise that hey, when you're sixty five, you're
going to have all this money saved up in this
life insurance policy and you can borrow against it and
it's really tax effective. Well, folks, if you knew you
(08:48):
were going to live to you were sixty five, seventy
seventy five, you wouldn't need as much life insurance. You
buy life insurance in case something happens to you when
you're twenty five, thirty five, forty five. That's when you
buy life insurance. If you die prematurely, especially if you
have a family and some people have charitable bequests they
(09:08):
want to take care of. Whatever the reasons are, life
insurance is important in your life, and term life insurance
is really the way to go.
Speaker 2 (09:19):
Now.
Speaker 1 (09:20):
I'm not saying I did not have any permanent policies.
Speaker 2 (09:23):
I did.
Speaker 1 (09:24):
I had a variable life policy and it was a
way for me to put money away because I could
afford to do that. But most of my insurance was
term insurance. And if you can't afford to have the
luxury of permanent insurance, if your insurance agent is selling
you two hundred thousand dollars policy because you can't afford
(09:46):
premiums on a two million dollar policy, one fire that
life insurance agent. Two look for term insurance because you can.
I can almost assure you afford two million dollars worth
of term insurance. Term insurance, and it is cheap, cheap, cheap.
I hate the word cheap, but term insurance is cheap, cheap, cheap.
(10:08):
So there you have it. If you have a family
and you don't have enough life insurance, make that a
priority because if you pass away prematurely. I'm telling you, folks,
you need to make sure that your family is taking
care of. And everybody's different. Everybody is different. I have
clients that say, oh, you know, I had to work
(10:31):
hard knocks. My children can work hard knocks. You know,
let them borrow money to go to college or whatever, whatever, whatever.
I was just the opposite because my mom died at
thirty one, my father died at forty nine. I know
that people die at young ages, and I wanted to
make sure that my family was well taken care of.
(10:52):
My wife didn't have to go back to work, did
not have to get remarried if I died. I wanted
to make sure that my wife was very well taken
care of. And if she passed away, why our children
were young. I wanted to make sure that I could
provide and not have to work sixty seventy hours a
week to build a business. There you have it, folks.
(11:13):
That's my little monologue on life insurance. The phone lines
are open one eight hundred eighty two five five nine
four nine. One eight hundred eighty two five fifty nine
forty nine. Let's go back to the phone lines where
we have Waldall in Aubany. Hello, Waldall. So I think
(11:40):
Waldo is kind of fooling around with me. Waldo. I
don't know where in the world Waldough is. I think
they made a book about that. But wherever you are, Waldo,
thanks for the phone call. One eight hundred eighty two
five five nine four. And sometimes people like to have fun,
call in, do some funny things, silly things. It's too
(12:01):
bad we have a serious show, a show where I'm
here to help the listening audience prepare for their financial future,
get them ready, give them my honest opinion. So if
you have any questions. One eight hundred eighty two five
nine four nine. I'm going to take a quick fifteen
second break, folks. Give me fifteen seconds and I'll be
(12:24):
right back with you. Hello, and welcome back, folks. As
I said, the phone lines are open, I would love
to talk with you. One eight hundred eighty five five
(12:44):
nine four nine. Any questions whatsoever? So Kentucky Derby Day,
you know, you know the best two minutes. In sports,
they say should be a good derby. I'm going to
put my money on sand Man. I like sand Man.
West Point is a partner in Sandman, and west Point
(13:06):
is actually partners with me and a few of my horses,
and folks, I don't talk about horses because it's an investment.
It's a hobby and believing a money losing hobby at that.
But I guess I could have worse hobbies, right. I
enjoy it. I actually have Carson's Run, which last year
was one of the best three year olds in the
(13:27):
country on turf. He's racing in the Fort Marcy Race
at five point twenty five tonight in Aqueduct. It's a
steakes race and my partner happens to be West Point
Thoroughbred's Terry Finley and the crew. So at five point
twenty five at Aqueduct you can probably catch it on
(13:47):
whatever the local horse racing channel is. Carson's run wearing
my silks, and it's a hobby, folks, it's it's it's
a hobby. I don't encourage people to go out and horse.
They eat a lot of oaks, oats, and they're they're they're,
they're they're they're beautiful, gentle animals and pets in so
(14:11):
many ways. But as I said, Carson's run races in
the Fort Marcy tenth Race, that Aqueduct. Five twenty five,
you had the Kentucky Derby, which should be a good
Kentucky Derby. I think it's going to be a little
wet there. I know it was wet yesterday for the
Kentucky Oaks, the favorite one that we'll see who wins
the derby. You never know, folks, you never know who
(14:32):
who can win the Derby. You know, it's really it
depends on what kind of a break these horses get
coming out of the gate, what kind of a ride
the jockey gives them, the conditions. Obviously, racing on firm
dirt is different than slopping through the mud, which is
where the term mutters come in. So it should be
(14:54):
it should be a good race. Kentucky Derby is always exciting.
A lot of people get all hyped up about it,
get all dressed up. A lot of people go out
to you know, house parties or their favorite restaurant that
has parties. So whatever you're doing for the Derby, enjoy it.
If you're not watching the Derby. That's okay too. One
(15:14):
eight hundred eighty two five five nine four nine one
eight hundred eighty two, five fifty nine forty nine. Give
me a call. I'd love to talk to you. So
the week in the markets, you know, we market President
Donald Trump's first hundred days. Whatever you think of him,
I'm not here to talk politics, but whatever you think
(15:35):
of him, you know, listen, this guy, he's you know,
he's he's a bully to to to deal with. You
may not like him, but I kind of like his policies,
his policies. I think at the end of the day,
the country's going to be in a better place, and
I'm okay with that. I'm not a Republican, nor am
(15:57):
I a Democrat, so I don't say that he's on
the diehard Republican, but I do think he's putting some
policies in place. And I know the talk over the
last several weeks has been tariffs, tariff's, tariffs, and Tariff's
is something to be reckoned with. Tariff's is something that
a lot of people feel. Aunt good. I kind of
think that we are going to come to neutral ground,
(16:21):
you know, the big country that everybody's worried about is China.
And I'll bet before you realize, we'll wake up in
China in the US we'll come together with some kind
of a deal that will be negotiated out. I think
that's one of the last big tariff and negotiations that
we have to get through. A lot of other countries
have already come to the table, and we you know,
(16:43):
we're going to kind of make trading with this great
country of ours more fair, and it should be more fair.
We're the greatest country in the world, and yes we
are the richest country in the world, but that doesn't
mean that we should have other countries take advantage of us.
That doesn't mean that why not bring some jobs back
to this country and you know, have this country have
(17:06):
some some of those jobs that we've been exporting. So,
you know, I just believe, my personal opinion is that
at the end of the day, the tariffs is going
to blow over. The markets have already recovered over fifty
percent of the losses that they felt a couple of
weeks ago. People were feeling, you know, down and out
(17:27):
gloom and doom about the markets. The markets were down,
you know, the S and P was down over ten percent,
Nanstak was down twenty percent, and it just didn't feel
good to own stocks. And you know, so many people
felt that the world was coming to an end. Guess what, books,
The world has never come to an end. No matter
(17:49):
how many corrections spare and markets and recessions we go through,
the stock market always recovers, always goes back to make
new all time highs. Funny how that happens. The only
people who lose out are those people that really panic,
have a knee jerk reaction and sell because they feel
(18:11):
they can't lose any more money. Not to you know,
put it lightly, but they're just paper losses, folks. If
you haven't sold, then you haven't lost money. They are
just paper losses, that's all. They are paper losses. And
that's how you have to put it in perspective. And
(18:31):
before you know it, all of a sudden, those paper
losses are back to where you were, and all of
a sudden, the funny thing happens. Now they're worth even
more than where you were because the market always goes
back and makes new all time highs. You always have
to keep that in the back of your mind when
it comes to investing. You hear me say it often
(18:54):
volatility creates opportunity for investors, and that's the truth. So
we had the first one hundred days, you know, you had,
you know, in Canada, Mark Carney led the Liberal Party
narrowly won the Canadian elections. It'll be interesting to see
what happens. I think he's coming to visit with President
(19:15):
Trump on Tuesday. And the US stocks, you know, initially
treaded water, then surged. They after meta platforms, which is Facebook,
and Microsoft reported strong earnings. China has seen the softened
on trade talks. I'm telling you we're gonna wake up, folks,
and China's going to be on board. There's going to
(19:36):
be a negotiation. I truly believe that the world is
not ending because of these tariff talks, and we're not
selling because of it either. If anything, we're buying. China's
manufacturing slowed in April and in the first quarter. US
growth kind of contracted a little bit. On Friday, April,
(19:57):
payrolls beat expectations. On the week, Donald Jones were up
three percent, s and P up almost three percent, NASDAC
up three and a half percent, and small caps led
to charge. It's always nice to see small caps do well.
One eight hundred eighty two five five nine, four nine.
(20:18):
Let's go back to the phone lines where we have
Steve from Alburny. Hello, Steve, Hello Steve.
Speaker 2 (20:24):
Nice to talk to you.
Speaker 1 (20:25):
Well, nice to talk to you as well. All right, well,
thank you.
Speaker 2 (20:30):
I have a question I don't know.
Speaker 1 (20:31):
Could you give me your opinion on the performance of
j ep I and jp Q in the down market,
how they perform you? Yeah, yeah, j e p I
is one of our top holdings. I always say we
we and for people that are wondering what jp EI is,
it's it's the jp Morgan Equity Premium Income Fund. It's
(20:53):
a great holding. We use it in place of bonds.
Right now we're getting an eleven percent yield and it's
it uses a lot of you know, fancy schmancy you
know options to to achieve these returns. Year to date
it's down point five nine percent, but you're getting an
(21:15):
eleven percent dividends, so you know, you got to take
that into consideration and if you compare it to bonds,
because that's why we use it. We use it in
place of bonds. We also had the Ice Shares us
Core aggregate bond and if you look year to date,
that holding is up two point four percent. So from
(21:39):
a price standpoint, JETPY is down a little bit. But
JETY over time has has performed very well for us.
Our clients have been very happy with Jeffy. As I said,
we use it as as an alternative to bonds. And
you know, last year it was up twelve and a
(22:00):
half percent, which was pretty remarkable, almost performed like stocks.
In twenty twenty three it was up ten percent. Now
in twenty twenty two it was down three and a
half percent. In twenty twenty one it was up twenty
two percent. So you know, jet B over time, even
though you're to date it's down a little bit, it's
(22:20):
done pretty good and it's actually outperformed the ag the
I Shares US Aggregate Bond ETF. So Ryan and Polo
did a good job putting that in our portfolios because
our clients made more money there than they would have
made if they were in stocks. So that's that or
(22:41):
in bonds, I'm sorry, not stocks in bonds, and that's
why that's why we use it. We like it. It's
been good to our clients as an alternative. There's risk
that comes, so don't think that there's no ups and downs.
There are, but overall we like the holding and we
still are going to keep it in the portfolios. Great question, Steve.
(23:02):
I appreciate that question. You be well, stay healthy. One
eight hundred eighty five five nine four nine, Bye.
Speaker 2 (23:10):
Bye, Steve.
Speaker 1 (23:11):
One eight hundred eighty two five fifty nine forty nine.
We're coming up to the bottom of the hour. We're
going to take a quick break for the news. You're
listening to. Let's Talk Money, brought to you by Bouchef
and Andrew Group, where we help our clients prioritize their
health while we manage their wealth for life. Folks, you
know I love doing the show. You know I get
(23:32):
energized doing the show with you, and I would love
to talk to you, so if you have any questions.
One eight hundred eight two five five nine four nine
One eight hundred eighty two five fifty nine forty nine,
I'll see you in a couple quick minutes.
Speaker 2 (24:01):
Hello, and welcome back, folks.
Speaker 1 (24:03):
I'm Stephen Bouchet and I am sitting here live and
I thank you for hanging through the news. I thank
you for tuning in today. I thank you for tuning
in every Saturday at ten, every Sunday at eight. We really,
I think have probably the best, most premiere and informative
(24:24):
talk show on money and investing there is in the country.
I'm not confident that we are that good. I've built
a team of twenty professionals that I'm surrounded by, and
these these colleagues that I work alongside with are just amazing,
(24:44):
top notch, second to none, take care of my clients
like there's no tomorrow, and it's I can't thank them enough.
Our success is because of the efforts of each and
every one of my professionals that I'm surrounded by. If
all minds are open, and if you have any questions,
I would love to talk to you one eight hundred
(25:05):
and eighty five five nine four nine, any questions whatsoever.
I'm looking at our website blushay dot com. And as
I said in the first half of the show, I
went to Rome last week. I flew out on Easter Sunday.
I was supposed to meet with Pope Francis. Unfortunately, as
(25:26):
I landed, he passed just as I was landing in Rome.
And I you know, technology is it just amazes me
when clients ask how come we're overweight technology, I say
these Technology is just a beautiful thing. It plays a
part in our life. It gets bigger and it takes
(25:46):
over our life in ways we can't comprehend. So on
social media, some of the local news agencies WNYT Channel
thirteen and Spectrum News knew that I was over there,
so I did a couple of TV interviews for them,
and on our website, the the you know, the w
(26:07):
n y T interview is there, and it kind of
puts it in perspective, folks.
Speaker 2 (26:14):
As I said, it's.
Speaker 1 (26:14):
Been a long year. I was fortunate enough to have
a friend in the Vatican to arrange a Mass being
said for me on Tuesday and a meeting with the
Pope on Wednesday. It didn't happen. But this interview, and
it's right on our home page of Bouchet dot com,
is pretty good interview. And then you know on Twitter,
(26:37):
you know, BBC International actually picked up on this interview
and they reached out to me, and I did an
interview for BBC International all around the world, and that's technology,
and that's one of the reasons why we're overweight technology.
There's also a couple of good white papers, one written
by Sam Macy. Today's her fourth anniversary anniversary with US.
(27:01):
How does the Social Security Fairness Act impact me? Is
the title of that white paper. And then John mlay
our COO, he's a CPA unavoiding I'm sorry, let me
rephrase that, avoiding unforced errors and staying in the game.
What Eli Manning can teach us about investing pretty interesting topic.
(27:23):
And as I said, reflections from Stephen Bouche and Rome
Honor and Pope Francis in local and global interviews. That's
the interview that I did, and that's on our home
page eighty five five nine four nine. So it was
a good week. As I said, you know, the dial
(27:43):
up three percent, SMP up just about three percent, Nansdack
up just about three and a half percent, Russell two thousand,
up even more than that. The US and Ukraine agreed
to a minerals fund. President Trump ease some auto in
auto parks terriffs. As I said on the first half
of the show, he's a bullie, folks, He's a schoolyard bully.
(28:06):
He talks tough, but at the end of the day,
that's the way he negotiates and I'm not worried about
the terriffs. I'm not worried at all about the terriffs.
It may, you know, we may have some short term
volatility because of it, but long term, the markets are
going to be just fine, and I think this country
is going to be even greater because of the policies
(28:28):
that are going into effect. So that's why I'm not
running scared. I'm not running for the hills. And if anything,
as I said in the first half, and as I
say often on the show, when there's volatility in the markets,
that's opportunity for investors. Do not shy away from that volatility.
So you had General Motors suspended stock buybacks and pulled guidance,
(28:53):
as did the Mercedes Group Stilanties. You had Amazon launched
its first twenty seven Cooper satellites in a bid to
compete with Elon Musk's Starlink.
Speaker 2 (29:05):
Good luck with that.
Speaker 1 (29:06):
Elon Musk wasn't I've been saying for years, this is
a very brilliant and eccentric individual. How this guy gets
it done, I don't know he got ups. United Parcel
Service said it would lay off twenty thousand and closed
seventy three facilities, and shed some Amazon business because Amazon
(29:29):
was going to put a you know kind of tax
on because of the tariffs, and President Trump made a
phone called the Jeff Bezos and boom that disappeared. Apple,
you know, was a little gloomy on tariff costs. Amazon
and McDonald's earnings weren't so good. So it was it
(29:50):
was an interesting week with some of the companies you
have right now, a little more than three hundred and
fifty of the five hundred companies that make up the
sm P five hundred indecks have reported results for this
earning season, more than seventy five percent of them beating
consensus earning per shares estimates and about sixty percent exceeding
(30:13):
exceeding sales estimates. That's pretty good, folks. I love every
earning season. You know, the bad news bears out there
always say earnings aren't going to be as great, and
all of a sudden, Corporate America seems to always come
through in earnings are pretty good. We got about ninety
companies that are going to announce earnings this week, so
(30:35):
you know, that'll make up just about the entire s
and P five hundred indecks. At the end of the month.
You got n the video that's one of the biggiest.
We'll see what happens there. On Monday, you got the
Institute for Supply Management Releases at Services Public Purchasing Managers
INDECKS for April. Right now, the estimate is reading a
(30:56):
fifty point three, slightly lower than in March. And then
Tuesday and Wednesday, the Fed Open Market has its two
day meeting, and right now, you know, the bet is
that they'll leave FED funds right where they're at unchanged.
That means they won't raise interest rates, they won't lower
interest rates. Hey, Zach and Deliah, let me take a
(31:19):
quick fifteen second break to clear my throat. Don't go anywhere, folks,
I promise fifteen seconds.
Speaker 2 (31:24):
Goes by quickly. Nice Jesse music.
Speaker 1 (31:35):
I appreciate that we have a new producer working with
Zach today. Zach's my longtime producer and Dliah is going
to be our new producer. So welcome to the teen Daliah,
you're doing a great job. It's not easy producing our show.
You know, we have a great show and Zach has
done it for a long time, so I'm in good hands.
(31:57):
So as they said, the market, Federal Market Open Committee
is meeting Tuesday and Wednesday, and more than likely they'll
leave interest rates right where they're at. Share Jerome Powell,
and you know, well, you know, all eys will be
focused around two o'clock on Wednesdays to see how he
addresses the feds dual mandate. With the labor market still solid,
(32:21):
inflation running ahead of the feds two percent rate, so
that's probably why they won't be cutting rates. Usually the
Fed cuts rates to stimulate the economy. They raise rates
to slow down the economy. Right now, we probably don't
need to do neither, so the the interest rate situation
(32:45):
will probably stay the same. There's a forty percent chance
in June that there may be a cut, but we'll see.
You know, all eyes are focused on all reports on
the economy, the jobs, the inflation, everything. The Fed looks
at a lot of data. We know they have their
nose to the goat grindstone looking at just about every
(33:09):
piece of data they can on the economy. So we'll
see what happened. There was a good, good piece in
this week's Barons about how coke beat Pepsi, Coca Cola
and Pepsicola shares have been on different paths Coke is
up fifteen percent, easily beating the SMP. You know, a
year to date the SMP. So we had a good week.
(33:32):
And as I said, remember the SMP was down about
ten percent at one point over ten percent from its high.
Year to date, we're down about three percent, three point
three percent. Nasdaq is down about seven percent, but QQQ
is only down four point three percent. There's a difference there, folks.
I remind you about this almost weekly. Nasdak composite is
(33:54):
the entire composite. But when you buy QQQ, you're buying
one hundred largest company and he's in Nansdak. And there's
nothing wrong with that. The one hundred largest companies in
Nansdak is a pretty cool thing. You got Apple, Microsoft, Navidia, Amazon, Broadcom,
Meta which is Facebook, Netflix, Costco, Tesla, Google, Alphabet, whatever
(34:19):
you want to call it. And those are the top
ten holdings, which they make up fifty percent of NASDAK.
So if you like those ten companies, and I like them,
even though Apple and Amazon had a bad week, there
are top two holdings. We're not running scared. They're great companies.
If anything, I would be adding to those positions. I
(34:39):
like those positions, and these ten companies as a whole
is a pretty good, pretty good stable of companies. So
if you buy QQQ, the top fifty, the top fifty percent,
the top ten amount for fifty percent of it, obviously
(35:01):
there's there's one hundred companies. There's there's really one hundred
and two companies because like Alphabet has two class shares,
but the top one hundred companies of Nansdak is what
makes up QQQ.
Speaker 2 (35:13):
So QQQ is.
Speaker 1 (35:15):
Only down four point three percent compared to the compounds
of being down seven percent. Russell two thousand is down
about nine point four percent, so small caps still have
a way to come once again, they were down more
than twenty percent, just like Nansdak was down more than
twenty percent. So they recovered pretty substantially, folks, more than
(35:35):
fifty percent of their losses they recovered. Which is why
you cannot get scared out of the market when there's volatility.
Don't sell, don't have knee jerk reactions, please don't don't.
Don't do that. You just hurt yourself. If you're a good,
well diversified, well intentioned long term investor, do not get
(35:57):
scared out of the markets because of short term volod
so Coke and Pepsi are going in different directions. Pepsi's
down about twelve percent while Coke is up fifteen percent.
This year, Coke beat expectations on first quarter earnings and
revenue earning season. You know is here. Coca Cola continues
(36:19):
to hit on all cylinders, stands out fundamentally within the group.
Coke shares are are a top pick for a lot
of companies. The stock is trading out about twenty five
times earnings expected for the next twelve months, making it
only about fifteen percent more expensive than its peers. It's
funny US makes up forty percent of Coca Cola revenue
(36:42):
sixty percent for Pepsi. I say that because I was
just in Rome and Paris. I forgot to tell you
that from Rome I flew up to Paris. I actually
went to Shantilly. I met one of my trainers, Christ Clement.
His brother Nicholas Clement's one of the top trainers in France.
And what an interesting I'm telling you. In this great
(37:08):
country of ours, horses trade trained on an oval racetrack,
a flat oval racetrack. They go around in an oval.
Speaker 2 (37:16):
You know light.
Speaker 1 (37:17):
Pattern and Chantilly. They actually run in the forest. They're
running up hills and I'm literally in the middle of
forest and you watch these horses come around through the
trees and disappear through the trees. And Chantilly out in
the French countryside outside of Paris was pretty cool. And then,
(37:41):
you know, spend some time in Paris with a beautiful
view of the Eiffel Tower. If you're on Twitter or
or you know, Facebook or Instagram, you can you can
look for these pictures and track my my journey. But
I ate well, and I guess when I'm going with
this is It's funny that Coca Cola. You know, forty
(38:02):
of the US is Coca Cola's business, where sixty percent
for PEPSI and I saw more Coca Cola served than anywhere.
You can't miss it, right, you have that little bottle
with the red label. You can't miss it. Today I'm
launching on. You know, Warren Buffett has Berkshire Hathaway's annual
(38:23):
meeting and he's got two cans of Coca Cola right
in front of him. Got to love this guy. He's
you know, this guy is one of the best. At
ninety four years old. He's going strong and really going strong.
I always say to clients, they say, are you slowing down, Steve,
I said, listen, Warren Buffett's ninety four. He's still going
pretty strong until I'm mentally incompetent, or you know, something
(38:47):
happens to me. I'm not slowing down. I love what
I do now. I have a good leadership team, and
I delegate more to them so that I don't have
to be involved in the day to day logistics. But
I am not slowing down. I love talking with my clients.
I love getting involved with the investments. I have a
lot of experience, thirty five years in business, almost forty
(39:09):
years helping clients. I have a lot that I can
teach my team, which I do, including my leadership team.
I mentor them and they know that our first priority,
especially as an RIA and a fiduciary, is to take
care of our clients. Our clients come first and foremost.
Nothing else matters to me then taking care of our clients.
(39:34):
And I have a team that understands that. So I'm
in a good place, in a really good place. Twenty
professionals Just a good place one eight hundred eight two
five five nine, four nine one, eight hundred eighty two
five fifty nine forty nine. Any questions, give me a call.
(39:54):
So Friday, the jobs report came out for the month
of March, and you know, we added jobs more than expected.
We added one hundred and seventy seven thousand jobs and
we were expecting one hundred and thirty three thousand. So
the unemployment rate state of four point two percent. That
(40:15):
showed pretty good confidence that the economy is pretty good, folks.
You know, there's nothing wrong with this economy. It's a
really really resilient economy. Even with all the tariff talks
and all the doom and gloom from the bad newsbears,
the economy hangs in there. And remember the consumers doing
(40:35):
pretty good. Sure they're slowing down a little bit, their
confidence is down. Can't blame them. They're only human consumers
are are are are just like you and me, right,
We're human, We're consumers. And with all the negative headlines
and all the you know, politics in this country stinks,
(40:56):
just stinks. I'm so sick and tired of politics in
this I can't believe what happened to the days when
you know, some Democrats would say to the Republicans, Yeah,
you know what, that's a good idea, or some Republicans
would say the Democrats, yeah, hey, you know what, you
came up with a good idea. What happened to those days?
Speaker 2 (41:15):
Why are you kidding me?
Speaker 1 (41:17):
You don't think the Republicans have one good idea, and
you don't think the Democrats have one good idea. What
happened to the days of Ronald Reagan and Tip O'Neil,
you know, having a beard together and putting their arms
around each other and getting along and coming to agreement.
I mean, why can't we have days like that again?
(41:40):
Why do we have to be so cold and frigid?
You're either so far on a letter, so far on
the right. So politics in this country, in my estimation, stinks.
What I like right now is looking to reduce the deficit.
If we continue on the pace that we're continued. You
went on this great country of hours is thirty seven
(42:03):
trillion dollars in debt. That's twelve zeros on the end
of a trillion. Think about that, thirty seven trillion dollars
in debt. We're running deficits at trillions of dollars every year.
That means in the nutshell, folks, we're spending more than
we earn. If your household budget is one hundred thousand
(42:24):
dollars and you're spending one hundred and ten thousand, that
means you're borrowing ten thousand dollars from somewhere. You're either
putting it on credit cards or taking it out of
the equity of your home or out of your savings.
But you're spending more than you're making. You can't continue
to live like that. You're going to go bankrupt after
(42:44):
a while. Well, the saying goes, for this great country
of hours, we can't continue to spend money like we're
spending money. We have to rein it in. So there's
some things going on in Washington now to rein it in.
Speaker 2 (43:00):
Folks.
Speaker 1 (43:00):
You are not going to have your Social Security cut
or Medicaid cut. Just forget about all that garbage's they're
not doing yet. This administration is not going to touch
those things. They are not now. They may get rid
of some waste, and why not. They should be getting
some rid of some waste. And I'm okay with that.
(43:22):
You know, it's almost fraud what's going on. And I'm
all in favor of term limits. Look, at these politicians
public servants that are multi millionaires. How do you become
a multi millionaire living on public servant petty?
Speaker 2 (43:40):
You can't.
Speaker 1 (43:41):
You can't unless there's something funny going on. You just can't.
And you know, you got the Bernie Sanders of the
world talking about you know how green he and aoc
are flying around in private jets and they're multi millionaires.
How does a see go from being a bartender to
(44:02):
being a multi millionaire in a few short years? Tell me, folks,
does that make sense to you? Bernie Sanders has three
homes and millions and millions and millions of dollars and
he's been a public servant his entire life? How does
that happen? The same with Chuck Schumer, And we can
go on and on and on and on and on.
Speaker 2 (44:21):
How does that happen?
Speaker 1 (44:23):
So, if we get rid of some fraud, if we
stop some some waste and get rid of some some
just fluff and needless stuff going on in Washington, that's
not bad and I'm not afraid of that. As I
said on the first half of the show, that'll actually
be good for our country. At the end of the day,
(44:44):
we'll be better off for it, we'll have to. Yes,
there's going to be some pain, short term pain for
long term gain. I truly, truly believe that. So the
jobs report showed that a lot of business leaders are
betting that Trump will will blank and he does. We've
seen him talk like a schoolyard bully and then he
(45:05):
backs down, but he gets people's attention, right, It won't
surprise me if you see real soon the war in
Ukraine and Russia, you know, come to an end. You know,
the Middle East. I mean, that's just always, you know,
just a firestorm ready to to explode even more, you know.
(45:29):
The if you look, it's it's consumer sent sentiment in
April hit one of the lowest levels on record, according
to the University of Michigan that releases that that survey.
And I'm not surprised that that with with as I said,
all the negative headlines and with what's what's going on.
(45:53):
But I am happy that that that that we're adding,
the jobs that we are in This country is just
as resilient as it is. This economy is as resilient
as it is. We are the greatest country in the world,
and we continue to be the greatest country in the world.
I'm very proud of that. One. Eight eighty two, five, five, nine,
(46:14):
four nine are the phone numbers. Let's go to the
phone lines where we have data from Clifton Park. Good morning, Dana.
Speaker 3 (46:22):
Good morning, how are you this morning? Sound good?
Speaker 2 (46:24):
I'm doing wonderful good.
Speaker 3 (46:27):
I have a quick, easy question about I have an
annuity from when I remember you don't you're not any
fond of annuities.
Speaker 1 (46:36):
Well, I'm not sorry, Dale, that's all right.
Speaker 3 (46:42):
I'm learning some of this stuff. But is it a
good idea or not? Just a good idea to dig
into the newity to pay off a mortgage?
Speaker 1 (46:52):
No, no, no, no, you probably have a low margage
rate unless you just got it and you have a
higher mortgage rate. But even remember even more margats. People
are going crazy because martgage rates are between six and
seven percent. But over time, long term, that's not a
bad mortgage rate. Remember in the eighties they were in
the twenty percent range. But unfortunately, over the last several
(47:16):
years we had mortgages two to three percent, four percent.
So what's your margage rate?
Speaker 3 (47:23):
It's round five right now, all right?
Speaker 1 (47:26):
So yeah, but it's still lower than the current rate,
and five percent is not that bad. If you have
a well diversified portfolio stocks and bonds and a balanced
growth and income strategy, you should be able to overtime
get eight percent on your money, which is more than
five percent, and you're probably going to have back end
(47:46):
fees and that annuity if you cash it in, so
be careful before you do it. Hey, Dana, we're coming
up to the end of the show.
Speaker 2 (47:52):
Folks.
Speaker 1 (47:52):
You're listening to Let's Talk Money, brought to you by
bouchetf and Inch Group, where we help our clients prioritize
to our help while we manage it's their wealth for life.
I can't thank you enough for tuning in every Saturday
at ten Sunday mornings at eight not nine at eight
am on Sunday mornings. Thank you for tuning in. We
got the Derby Day. You got my horse, Carson's run
(48:15):
racing in the tenth race at Aqueduct wearing my silks.
Let's hope he does well. Thank you for tuning in, folks,
Hello, and welcome folks this first weekend of May. I
am Stephen Bouche, your host today, sitting here live. I
welcome you to the show as I do every week.
I can't believe it's been thirty years that I've been
helping out the listening audience with some financial advice and
(00:23):
getting you hopefully pointed in the right direction. That's my
main goal, to give you my honest opinion and you
get more opportunity to retire. I want to make sure
I do my best to help you achieve that goal.
If I do that, then I'll be doing a good
thing for you. The buone mines are open if you
have any questions, any questions whatsoever. One eight hundred Talk
(00:46):
WGY one eight hundred eighty two five five to nine
four nine. So I was off last weekend, as most
of you probably know if you've been listening to the show,
and actually flew into Rome. And I flew in on Monday,
well a week ago Monday to visit with the Pope.
(01:09):
On Tuesday, the Vatican was going to say a Mass
for me, and on Wednesday I had a meeting set
up to meet the Pope in person. Unfortunately, as my
plane touched down in Rome, I found out the news
that the Pope literally just passed away. And it was
a memorable trip for different reasons. And unfortunately, you know,
(01:32):
the mood was so somber, being in, you know, a
Vatican Square and going through Saint Peter's Basilica, and basically
it was just kind of surreal in a way. And
as I said, memorable for different reasons, not seeing the Pope,
but being there during that time, a time now I'll
(01:55):
remember forever, and it's he was a good man. He
was the people's pope. I'm reading his autobiography, which took
six years to write, and he wrote it himself, and
he's really to read this book, a remarkable man. The
name of the book is Pope Francis Hope, and it's
(02:17):
an autobiography. There's two books named Hope, but this one,
will say it's his autobiography. A nice picture of him
on the cover, and you know, whatever your faith is,
it's just a good book to read about a good man,
a man who cared about the people. His last week,
he was not feeling well, and I think in hindsight
(02:39):
everything's crystal clear. As I like to say so on Thursday,
Holy Thursday, he went to the prisons like he always does,
visits the prisoners in a wheelchair. He made sure that happened.
On Saturday, the day before Easter, he went through Saint
Peter Square, and on Sunday, Easter Sunday, he went through
(02:59):
Saint Peter Square again and you know, got out of
his car, met some people, and that's what he does.
And then he passed away, obviously into the early hours
of Monday. So I think he kind of knew and
wanted to be out there and see the people. So
(03:21):
God blessed Pope Francis. May he rest in peace. As
I said, it was a memorable experience. I am here
today and I would love to talk to you. We
got a lot to talk about. It was a pretty
good week in the markets. The markets have recovered from
their lows, which is why you can't you can't freak out,
(03:41):
you can't panic, you can't have knee jerk reactions when
there's volatility. I say it often, And I just had
a nice conversation with the prospective client, longtime listener, who
you know, basically is working with an advisor who does
absolutely nothing for him or does very little for him,
and I told this prospective client just how proactive we are,
(04:04):
how much we communicate. My investment team, led by my
son Ryan, Paulo La Pietra, Ed Wilhelm Casey, BYRD Dave Clark.
My investment team is pretty good. They're very disciplined. We
put a lot of thought into our methodology. Our strategies
are rock solid. I'm invested one percent of my money's invested,
(04:28):
just like my clients. I wouldn't have it any other way.
As I shared with this prospective client, if I'm a foodie, listen,
I love to cook, and there's you know, a couple
of weeks ago, I started cooking again. It's been a
long year that I haven't cooked. So I started cooking
again a couple of weeks ago, and it feels so
good to get back in the kitchen and roll up
(04:48):
my sleeves, turn on the stove and create some dishes.
And if I was inviting you over to the dinner,
I couldn't imagine me cooking something different than what I
was going to cook for you. And I feel the
same way about investing. And I tell this to a
lot of people who will listen to me. When you know,
if you're working with an advisor. On Monday morning, give
(05:10):
here Sha a call and ask them, Hey, are you
invested in the same way I'm invested, And if they're not,
ask them why. I mean, how come they're selling you
this mutual fund or that annuity which you know I'm
dead against, or any other investment, especially life insurance when
you don't need it. Most people need life insurance, but
(05:32):
they don't need expensive life insurance policies. Life insurance is
really for the young, not so much when you're old,
unless you want to lead money to charity or really
make your children rich. You really need life insurance when
you're young, raising your family if something happens to you
or your spouse, in order to have enough money that
(05:53):
you can be able to provide for your family, have
your spouse be able to continue on and take care
of the children and not have to worry about working
two three jobs to make ends meet because one spouse
has passed away. That's what life insurance is for. And
(06:14):
unfortunately a lot of life insurance agents like to sell
these expensive life insurance policies, whole life or universal life
that people can't afford. I always say, if you have
a family, if you don't have at least two million
dollars worth of life insurance, you don't have enough. I
can almost say that, just like I say if you've
never done any retirement planning, and if you're not saving
(06:37):
ten to fifteen percent of your wages your salary, you're
not saving enough. I can almost say that hands down,
and I can prove it if you give me some time.
But I feel the same way about life insurance. If
you're raising a family and you don't have two million
dollars worth of life insurance, you probably don't have enough,
(06:59):
especially if you have a spouse who may not be working,
if there's one spouse working, one spouse not working. Even
in that scenario, and I use myself as an example,
you know my wife, Sue, God bless her. It'll be
almost a year, almost two weeks from now to be
a year that she passed. But when she was young,
(07:21):
she was working part time, raising my family so that
I could work and build my business. And I always
had life insurance on her because if something happened to her,
then I knew that I wouldn't be able to work
the hours that I was working. I knew that when
I came home, I would want to spend it with
(07:43):
my children. I wouldn't want to have to worry about
doing the laundry, mowing the law. I think of all
the things that Sue did around the house, and to
replace all those things that Suit did around the house
costs money. So I always had life insurance on Sue
even though she only worked part time. And obviously I
had a whole lot more life insurance on me, because
(08:04):
if something happened to me, I would want to make
sure that Sue was able to continue raising my children
and not have to worry about the mortgage or her retirement.
I didn't want her to have to remarry or go
out and work two three jobs. So I always had
substantial life insurance on me. And it's hard to afford
(08:25):
that life insurance when you're buying expensive permanent policies, and
unfortunately a lot of insurance agents they sell these policies
with the promise that hey, when you're sixty five, you're
going to have all this money saved up in this
life insurance policy and you can borrow against it and
it's really tax effective. Well, folks, if you knew you
(08:48):
were going to live to you were sixty five, seventy
seventy five, you wouldn't need as much life insurance. You
buy life insurance in case something happens to you when
you're twenty five, thirty five, forty five. That's when you
buy life insurance. If you die prematurely, especially if you
have a family and some people have charitable bequests they
(09:08):
want to take care of. Whatever the reasons are, life
insurance is important in your life, and term life insurance
is really the way to go.
Speaker 2 (09:19):
Now.
Speaker 1 (09:20):
I'm not saying I did not have any permanent policies.
Speaker 2 (09:23):
I did.
Speaker 1 (09:24):
I had a variable life policy and it was a
way for me to put money away because I could
afford to do that. But most of my insurance was
term insurance. And if you can't afford to have the
luxury of permanent insurance, if your insurance agent is selling
you two hundred thousand dollars policy because you can't afford
(09:46):
premiums on a two million dollar policy, one fire that
life insurance agent. Two look for term insurance because you can.
I can almost assure you afford two million dollars worth
of term insurance. Term insurance, and it is cheap, cheap, cheap.
I hate the word cheap, but term insurance is cheap, cheap, cheap.
(10:08):
So there you have it. If you have a family
and you don't have enough life insurance, make that a
priority because if you pass away prematurely. I'm telling you, folks,
you need to make sure that your family is taking
care of. And everybody's different. Everybody is different. I have
clients that say, oh, you know, I had to work
(10:31):
hard knocks. My children can work hard knocks. You know,
let them borrow money to go to college or whatever, whatever, whatever.
I was just the opposite because my mom died at
thirty one, my father died at forty nine. I know
that people die at young ages, and I wanted to
make sure that my family was well taken care of.
(10:52):
My wife didn't have to go back to work, did
not have to get remarried if I died. I wanted
to make sure that my wife was very well taken
care of. And if she passed away, why our children
were young. I wanted to make sure that I could
provide and not have to work sixty seventy hours a
week to build a business. There you have it, folks.
(11:13):
That's my little monologue on life insurance. The phone lines
are open one eight hundred eighty two five five nine
four nine. One eight hundred eighty two five fifty nine
forty nine. Let's go back to the phone lines where
we have Waldall in Aubany. Hello, Waldall. So I think
(11:40):
Waldo is kind of fooling around with me. Waldo. I
don't know where in the world Waldough is. I think
they made a book about that. But wherever you are, Waldo,
thanks for the phone call. One eight hundred eighty two
five five nine four. And sometimes people like to have fun,
call in, do some funny things, silly things. It's too
(12:01):
bad we have a serious show, a show where I'm
here to help the listening audience prepare for their financial future,
get them ready, give them my honest opinion. So if
you have any questions. One eight hundred eighty two five
nine four nine. I'm going to take a quick fifteen
second break, folks. Give me fifteen seconds and I'll be
(12:24):
right back with you. Hello, and welcome back, folks. As
I said, the phone lines are open, I would love
to talk with you. One eight hundred eighty five five
(12:44):
nine four nine. Any questions whatsoever? So Kentucky Derby Day,
you know, you know the best two minutes. In sports,
they say should be a good derby. I'm going to
put my money on sand Man. I like sand Man.
West Point is a partner in Sandman, and west Point
(13:06):
is actually partners with me and a few of my horses,
and folks, I don't talk about horses because it's an investment.
It's a hobby and believing a money losing hobby at that.
But I guess I could have worse hobbies, right. I
enjoy it. I actually have Carson's Run, which last year
was one of the best three year olds in the
(13:27):
country on turf. He's racing in the Fort Marcy Race
at five point twenty five tonight in Aqueduct. It's a
steakes race and my partner happens to be West Point
Thoroughbred's Terry Finley and the crew. So at five point
twenty five at Aqueduct you can probably catch it on
(13:47):
whatever the local horse racing channel is. Carson's run wearing
my silks, and it's a hobby, folks, it's it's it's
a hobby. I don't encourage people to go out and horse.
They eat a lot of oaks, oats, and they're they're they're,
they're they're they're beautiful, gentle animals and pets in so
(14:11):
many ways. But as I said, Carson's run races in
the Fort Marcy tenth Race, that Aqueduct. Five twenty five,
you had the Kentucky Derby, which should be a good
Kentucky Derby. I think it's going to be a little
wet there. I know it was wet yesterday for the
Kentucky Oaks, the favorite one that we'll see who wins
the derby. You never know, folks, you never know who
(14:32):
who can win the Derby. You know, it's really it
depends on what kind of a break these horses get
coming out of the gate, what kind of a ride
the jockey gives them, the conditions. Obviously, racing on firm
dirt is different than slopping through the mud, which is
where the term mutters come in. So it should be
(14:54):
it should be a good race. Kentucky Derby is always exciting.
A lot of people get all hyped up about it,
get all dressed up. A lot of people go out
to you know, house parties or their favorite restaurant that
has parties. So whatever you're doing for the Derby, enjoy it.
If you're not watching the Derby. That's okay too. One
(15:14):
eight hundred eighty two five five nine four nine one
eight hundred eighty two, five fifty nine forty nine. Give
me a call. I'd love to talk to you. So
the week in the markets, you know, we market President
Donald Trump's first hundred days. Whatever you think of him,
I'm not here to talk politics, but whatever you think
(15:35):
of him, you know, listen, this guy, he's you know,
he's he's a bully to to to deal with. You
may not like him, but I kind of like his policies,
his policies. I think at the end of the day,
the country's going to be in a better place, and
I'm okay with that. I'm not a Republican, nor am
(15:57):
I a Democrat, so I don't say that he's on
the diehard Republican, but I do think he's putting some
policies in place. And I know the talk over the
last several weeks has been tariffs, tariff's, tariffs, and Tariff's
is something to be reckoned with. Tariff's is something that
a lot of people feel. Aunt good. I kind of
think that we are going to come to neutral ground,
(16:21):
you know, the big country that everybody's worried about is China.
And I'll bet before you realize, we'll wake up in
China in the US we'll come together with some kind
of a deal that will be negotiated out. I think
that's one of the last big tariff and negotiations that
we have to get through. A lot of other countries
have already come to the table, and we you know,
(16:43):
we're going to kind of make trading with this great
country of ours more fair, and it should be more fair.
We're the greatest country in the world, and yes we
are the richest country in the world, but that doesn't
mean that we should have other countries take advantage of us.
That doesn't mean that why not bring some jobs back
to this country and you know, have this country have
(17:06):
some some of those jobs that we've been exporting. So,
you know, I just believe, my personal opinion is that
at the end of the day, the tariffs is going
to blow over. The markets have already recovered over fifty
percent of the losses that they felt a couple of
weeks ago. People were feeling, you know, down and out
(17:27):
gloom and doom about the markets. The markets were down,
you know, the S and P was down over ten percent,
Nanstak was down twenty percent, and it just didn't feel
good to own stocks. And you know, so many people
felt that the world was coming to an end. Guess what, books,
The world has never come to an end. No matter
(17:49):
how many corrections spare and markets and recessions we go through,
the stock market always recovers, always goes back to make
new all time highs. Funny how that happens. The only
people who lose out are those people that really panic,
have a knee jerk reaction and sell because they feel
(18:11):
they can't lose any more money. Not to you know,
put it lightly, but they're just paper losses, folks. If
you haven't sold, then you haven't lost money. They are
just paper losses, that's all. They are paper losses. And
that's how you have to put it in perspective. And
(18:31):
before you know it, all of a sudden, those paper
losses are back to where you were, and all of
a sudden, the funny thing happens. Now they're worth even
more than where you were because the market always goes
back and makes new all time highs. You always have
to keep that in the back of your mind when
it comes to investing. You hear me say it often
(18:54):
volatility creates opportunity for investors, and that's the truth. So
we had the first one hundred days, you know, you had,
you know, in Canada, Mark Carney led the Liberal Party
narrowly won the Canadian elections. It'll be interesting to see
what happens. I think he's coming to visit with President
(19:15):
Trump on Tuesday. And the US stocks, you know, initially
treaded water, then surged. They after meta platforms, which is Facebook,
and Microsoft reported strong earnings. China has seen the softened
on trade talks. I'm telling you we're gonna wake up, folks,
and China's going to be on board. There's going to
(19:36):
be a negotiation. I truly believe that the world is
not ending because of these tariff talks, and we're not
selling because of it either. If anything, we're buying. China's
manufacturing slowed in April and in the first quarter. US
growth kind of contracted a little bit. On Friday, April,
(19:57):
payrolls beat expectations. On the week, Donald Jones were up
three percent, s and P up almost three percent, NASDAC
up three and a half percent, and small caps led
to charge. It's always nice to see small caps do well.
One eight hundred eighty two five five nine, four nine.
(20:18):
Let's go back to the phone lines where we have
Steve from Alburny. Hello, Steve, Hello Steve.
Speaker 2 (20:24):
Nice to talk to you.
Speaker 1 (20:25):
Well, nice to talk to you as well. All right, well,
thank you.
Speaker 2 (20:30):
I have a question I don't know.
Speaker 1 (20:31):
Could you give me your opinion on the performance of
j ep I and jp Q in the down market,
how they perform you? Yeah, yeah, j e p I
is one of our top holdings. I always say we
we and for people that are wondering what jp EI is,
it's it's the jp Morgan Equity Premium Income Fund. It's
(20:53):
a great holding. We use it in place of bonds.
Right now we're getting an eleven percent yield and it's
it uses a lot of you know, fancy schmancy you
know options to to achieve these returns. Year to date
it's down point five nine percent, but you're getting an
(21:15):
eleven percent dividends, so you know, you got to take
that into consideration and if you compare it to bonds,
because that's why we use it. We use it in
place of bonds. We also had the Ice Shares us
Core aggregate bond and if you look year to date,
that holding is up two point four percent. So from
(21:39):
a price standpoint, JETPY is down a little bit. But
JETY over time has has performed very well for us.
Our clients have been very happy with Jeffy. As I said,
we use it as as an alternative to bonds. And
you know, last year it was up twelve and a
(22:00):
half percent, which was pretty remarkable, almost performed like stocks.
In twenty twenty three it was up ten percent. Now
in twenty twenty two it was down three and a
half percent. In twenty twenty one it was up twenty
two percent. So you know, jet B over time, even
though you're to date it's down a little bit, it's
(22:20):
done pretty good and it's actually outperformed the ag the
I Shares US Aggregate Bond ETF. So Ryan and Polo
did a good job putting that in our portfolios because
our clients made more money there than they would have
made if they were in stocks. So that's that or
(22:41):
in bonds, I'm sorry, not stocks in bonds, and that's
why that's why we use it. We like it. It's
been good to our clients as an alternative. There's risk
that comes, so don't think that there's no ups and downs.
There are, but overall we like the holding and we
still are going to keep it in the portfolios. Great question, Steve.
(23:02):
I appreciate that question. You be well, stay healthy. One
eight hundred eighty five five nine four nine, Bye.
Speaker 2 (23:10):
Bye, Steve.
Speaker 1 (23:11):
One eight hundred eighty two five fifty nine forty nine.
We're coming up to the bottom of the hour. We're
going to take a quick break for the news. You're
listening to. Let's Talk Money, brought to you by Bouchef
and Andrew Group, where we help our clients prioritize their
health while we manage their wealth for life. Folks, you
know I love doing the show. You know I get
(23:32):
energized doing the show with you, and I would love
to talk to you, so if you have any questions.
One eight hundred eight two five five nine four nine
One eight hundred eighty two five fifty nine forty nine,
I'll see you in a couple quick minutes.
Speaker 2 (24:01):
Hello, and welcome back, folks.
Speaker 1 (24:03):
I'm Stephen Bouchet and I am sitting here live and
I thank you for hanging through the news. I thank
you for tuning in today. I thank you for tuning
in every Saturday at ten, every Sunday at eight. We really,
I think have probably the best, most premiere and informative
(24:24):
talk show on money and investing there is in the country.
I'm not confident that we are that good. I've built
a team of twenty professionals that I'm surrounded by, and
these these colleagues that I work alongside with are just amazing,
(24:44):
top notch, second to none, take care of my clients
like there's no tomorrow, and it's I can't thank them enough.
Our success is because of the efforts of each and
every one of my professionals that I'm surrounded by. If
all minds are open, and if you have any questions,
I would love to talk to you one eight hundred
(25:05):
and eighty five five nine four nine, any questions whatsoever.
I'm looking at our website blushay dot com. And as
I said in the first half of the show, I
went to Rome last week. I flew out on Easter Sunday.
I was supposed to meet with Pope Francis. Unfortunately, as
(25:26):
I landed, he passed just as I was landing in Rome.
And I you know, technology is it just amazes me
when clients ask how come we're overweight technology, I say
these Technology is just a beautiful thing. It plays a
part in our life. It gets bigger and it takes
(25:46):
over our life in ways we can't comprehend. So on
social media, some of the local news agencies WNYT Channel
thirteen and Spectrum News knew that I was over there,
so I did a couple of TV interviews for them,
and on our website, the the you know, the w
(26:07):
n y T interview is there, and it kind of
puts it in perspective, folks.
Speaker 2 (26:14):
As I said, it's.
Speaker 1 (26:14):
Been a long year. I was fortunate enough to have
a friend in the Vatican to arrange a Mass being
said for me on Tuesday and a meeting with the
Pope on Wednesday. It didn't happen. But this interview, and
it's right on our home page of Bouchet dot com,
is pretty good interview. And then you know on Twitter,
(26:37):
you know, BBC International actually picked up on this interview
and they reached out to me, and I did an
interview for BBC International all around the world, and that's technology,
and that's one of the reasons why we're overweight technology.
There's also a couple of good white papers, one written
by Sam Macy. Today's her fourth anniversary anniversary with US.
(27:01):
How does the Social Security Fairness Act impact me? Is
the title of that white paper. And then John mlay
our COO, he's a CPA unavoiding I'm sorry, let me
rephrase that, avoiding unforced errors and staying in the game.
What Eli Manning can teach us about investing pretty interesting topic.
(27:23):
And as I said, reflections from Stephen Bouche and Rome
Honor and Pope Francis in local and global interviews. That's
the interview that I did, and that's on our home
page eighty five five nine four nine. So it was
a good week. As I said, you know, the dial
(27:43):
up three percent, SMP up just about three percent, Nansdack
up just about three and a half percent, Russell two thousand,
up even more than that. The US and Ukraine agreed
to a minerals fund. President Trump ease some auto in
auto parks terriffs. As I said on the first half
of the show, he's a bullie, folks, He's a schoolyard bully.
(28:06):
He talks tough, but at the end of the day,
that's the way he negotiates and I'm not worried about
the terriffs. I'm not worried at all about the terriffs.
It may, you know, we may have some short term
volatility because of it, but long term, the markets are
going to be just fine, and I think this country
is going to be even greater because of the policies
(28:28):
that are going into effect. So that's why I'm not
running scared. I'm not running for the hills. And if anything,
as I said in the first half, and as I
say often on the show, when there's volatility in the markets,
that's opportunity for investors. Do not shy away from that volatility.
So you had General Motors suspended stock buybacks and pulled guidance,
(28:53):
as did the Mercedes Group Stilanties. You had Amazon launched
its first twenty seven Cooper satellites in a bid to
compete with Elon Musk's Starlink.
Speaker 2 (29:05):
Good luck with that.
Speaker 1 (29:06):
Elon Musk wasn't I've been saying for years, this is
a very brilliant and eccentric individual. How this guy gets
it done, I don't know he got ups. United Parcel
Service said it would lay off twenty thousand and closed
seventy three facilities, and shed some Amazon business because Amazon
(29:29):
was going to put a you know kind of tax
on because of the tariffs, and President Trump made a
phone called the Jeff Bezos and boom that disappeared. Apple,
you know, was a little gloomy on tariff costs. Amazon
and McDonald's earnings weren't so good. So it was it
(29:50):
was an interesting week with some of the companies you
have right now, a little more than three hundred and
fifty of the five hundred companies that make up the
sm P five hundred indecks have reported results for this
earning season, more than seventy five percent of them beating
consensus earning per shares estimates and about sixty percent exceeding
(30:13):
exceeding sales estimates. That's pretty good, folks. I love every
earning season. You know, the bad news bears out there
always say earnings aren't going to be as great, and
all of a sudden, Corporate America seems to always come
through in earnings are pretty good. We got about ninety
companies that are going to announce earnings this week, so
(30:35):
you know, that'll make up just about the entire s
and P five hundred indecks. At the end of the month.
You got n the video that's one of the biggiest.
We'll see what happens there. On Monday, you got the
Institute for Supply Management Releases at Services Public Purchasing Managers
INDECKS for April. Right now, the estimate is reading a
(30:56):
fifty point three, slightly lower than in March. And then
Tuesday and Wednesday, the Fed Open Market has its two
day meeting, and right now, you know, the bet is
that they'll leave FED funds right where they're at unchanged.
That means they won't raise interest rates, they won't lower
interest rates. Hey, Zach and Deliah, let me take a
(31:19):
quick fifteen second break to clear my throat. Don't go anywhere, folks,
I promise fifteen seconds.
Speaker 2 (31:24):
Goes by quickly. Nice Jesse music.
Speaker 1 (31:35):
I appreciate that we have a new producer working with
Zach today. Zach's my longtime producer and Dliah is going
to be our new producer. So welcome to the teen Daliah,
you're doing a great job. It's not easy producing our show.
You know, we have a great show and Zach has
done it for a long time, so I'm in good hands.
(31:57):
So as they said, the market, Federal Market Open Committee
is meeting Tuesday and Wednesday, and more than likely they'll
leave interest rates right where they're at. Share Jerome Powell,
and you know, well, you know, all eys will be
focused around two o'clock on Wednesdays to see how he
addresses the feds dual mandate. With the labor market still solid,
(32:21):
inflation running ahead of the feds two percent rate, so
that's probably why they won't be cutting rates. Usually the
Fed cuts rates to stimulate the economy. They raise rates
to slow down the economy. Right now, we probably don't
need to do neither, so the the interest rate situation
(32:45):
will probably stay the same. There's a forty percent chance
in June that there may be a cut, but we'll see.
You know, all eyes are focused on all reports on
the economy, the jobs, the inflation, everything. The Fed looks
at a lot of data. We know they have their
nose to the goat grindstone looking at just about every
(33:09):
piece of data they can on the economy. So we'll
see what happened. There was a good, good piece in
this week's Barons about how coke beat Pepsi, Coca Cola
and Pepsicola shares have been on different paths Coke is
up fifteen percent, easily beating the SMP. You know, a
year to date the SMP. So we had a good week.
(33:32):
And as I said, remember the SMP was down about
ten percent at one point over ten percent from its high.
Year to date, we're down about three percent, three point
three percent. Nasdaq is down about seven percent, but QQQ
is only down four point three percent. There's a difference there, folks.
I remind you about this almost weekly. Nasdak composite is
(33:54):
the entire composite. But when you buy QQQ, you're buying
one hundred largest company and he's in Nansdak. And there's
nothing wrong with that. The one hundred largest companies in
Nansdak is a pretty cool thing. You got Apple, Microsoft, Navidia, Amazon, Broadcom,
Meta which is Facebook, Netflix, Costco, Tesla, Google, Alphabet, whatever
(34:19):
you want to call it. And those are the top
ten holdings, which they make up fifty percent of NASDAK.
So if you like those ten companies, and I like them,
even though Apple and Amazon had a bad week, there
are top two holdings. We're not running scared. They're great companies.
If anything, I would be adding to those positions. I
(34:39):
like those positions, and these ten companies as a whole
is a pretty good, pretty good stable of companies. So
if you buy QQQ, the top fifty, the top fifty percent,
the top ten amount for fifty percent of it, obviously
(35:01):
there's there's one hundred companies. There's there's really one hundred
and two companies because like Alphabet has two class shares,
but the top one hundred companies of Nansdak is what
makes up QQQ.
Speaker 2 (35:13):
So QQQ is.
Speaker 1 (35:15):
Only down four point three percent compared to the compounds
of being down seven percent. Russell two thousand is down
about nine point four percent, so small caps still have
a way to come once again, they were down more
than twenty percent, just like Nansdak was down more than
twenty percent. So they recovered pretty substantially, folks, more than
(35:35):
fifty percent of their losses they recovered. Which is why
you cannot get scared out of the market when there's volatility.
Don't sell, don't have knee jerk reactions, please don't don't.
Don't do that. You just hurt yourself. If you're a good,
well diversified, well intentioned long term investor, do not get
(35:57):
scared out of the markets because of short term volod
so Coke and Pepsi are going in different directions. Pepsi's
down about twelve percent while Coke is up fifteen percent.
This year, Coke beat expectations on first quarter earnings and
revenue earning season. You know is here. Coca Cola continues
(36:19):
to hit on all cylinders, stands out fundamentally within the group.
Coke shares are are a top pick for a lot
of companies. The stock is trading out about twenty five
times earnings expected for the next twelve months, making it
only about fifteen percent more expensive than its peers. It's
funny US makes up forty percent of Coca Cola revenue
(36:42):
sixty percent for Pepsi. I say that because I was
just in Rome and Paris. I forgot to tell you
that from Rome I flew up to Paris. I actually
went to Shantilly. I met one of my trainers, Christ Clement.
His brother Nicholas Clement's one of the top trainers in France.
And what an interesting I'm telling you. In this great
(37:08):
country of ours, horses trade trained on an oval racetrack,
a flat oval racetrack. They go around in an oval.
Speaker 2 (37:16):
You know light.
Speaker 1 (37:17):
Pattern and Chantilly. They actually run in the forest. They're
running up hills and I'm literally in the middle of
forest and you watch these horses come around through the
trees and disappear through the trees. And Chantilly out in
the French countryside outside of Paris was pretty cool. And then,
(37:41):
you know, spend some time in Paris with a beautiful
view of the Eiffel Tower. If you're on Twitter or
or you know, Facebook or Instagram, you can you can
look for these pictures and track my my journey. But
I ate well, and I guess when I'm going with
this is It's funny that Coca Cola. You know, forty
(38:02):
of the US is Coca Cola's business, where sixty percent
for PEPSI and I saw more Coca Cola served than anywhere.
You can't miss it, right, you have that little bottle
with the red label. You can't miss it. Today I'm
launching on. You know, Warren Buffett has Berkshire Hathaway's annual
(38:23):
meeting and he's got two cans of Coca Cola right
in front of him. Got to love this guy. He's
you know, this guy is one of the best. At
ninety four years old. He's going strong and really going strong.
I always say to clients, they say, are you slowing down, Steve,
I said, listen, Warren Buffett's ninety four. He's still going
pretty strong until I'm mentally incompetent, or you know, something
(38:47):
happens to me. I'm not slowing down. I love what
I do now. I have a good leadership team, and
I delegate more to them so that I don't have
to be involved in the day to day logistics. But
I am not slowing down. I love talking with my clients.
I love getting involved with the investments. I have a
lot of experience, thirty five years in business, almost forty
(39:09):
years helping clients. I have a lot that I can
teach my team, which I do, including my leadership team.
I mentor them and they know that our first priority,
especially as an RIA and a fiduciary, is to take
care of our clients. Our clients come first and foremost.
Nothing else matters to me then taking care of our clients.
(39:34):
And I have a team that understands that. So I'm
in a good place, in a really good place. Twenty
professionals Just a good place one eight hundred eight two
five five nine, four nine one, eight hundred eighty two
five fifty nine forty nine. Any questions, give me a call.
(39:54):
So Friday, the jobs report came out for the month
of March, and you know, we added jobs more than expected.
We added one hundred and seventy seven thousand jobs and
we were expecting one hundred and thirty three thousand. So
the unemployment rate state of four point two percent. That
(40:15):
showed pretty good confidence that the economy is pretty good, folks.
You know, there's nothing wrong with this economy. It's a
really really resilient economy. Even with all the tariff talks
and all the doom and gloom from the bad newsbears,
the economy hangs in there. And remember the consumers doing
(40:35):
pretty good. Sure they're slowing down a little bit, their
confidence is down. Can't blame them. They're only human consumers
are are are are just like you and me, right,
We're human, We're consumers. And with all the negative headlines
and all the you know, politics in this country stinks,
(40:56):
just stinks. I'm so sick and tired of politics in
this I can't believe what happened to the days when
you know, some Democrats would say to the Republicans, Yeah,
you know what, that's a good idea, or some Republicans
would say the Democrats, yeah, hey, you know what, you
came up with a good idea. What happened to those days?
Speaker 2 (41:15):
Why are you kidding me?
Speaker 1 (41:17):
You don't think the Republicans have one good idea, and
you don't think the Democrats have one good idea. What
happened to the days of Ronald Reagan and Tip O'Neil,
you know, having a beard together and putting their arms
around each other and getting along and coming to agreement.
I mean, why can't we have days like that again?
(41:40):
Why do we have to be so cold and frigid?
You're either so far on a letter, so far on
the right. So politics in this country, in my estimation, stinks.
What I like right now is looking to reduce the deficit.
If we continue on the pace that we're continued. You
went on this great country of hours is thirty seven
(42:03):
trillion dollars in debt. That's twelve zeros on the end
of a trillion. Think about that, thirty seven trillion dollars
in debt. We're running deficits at trillions of dollars every year.
That means in the nutshell, folks, we're spending more than
we earn. If your household budget is one hundred thousand
(42:24):
dollars and you're spending one hundred and ten thousand, that
means you're borrowing ten thousand dollars from somewhere. You're either
putting it on credit cards or taking it out of
the equity of your home or out of your savings.
But you're spending more than you're making. You can't continue
to live like that. You're going to go bankrupt after
(42:44):
a while. Well, the saying goes, for this great country
of hours, we can't continue to spend money like we're
spending money. We have to rein it in. So there's
some things going on in Washington now to rein it in.
Speaker 2 (43:00):
Folks.
Speaker 1 (43:00):
You are not going to have your Social Security cut
or Medicaid cut. Just forget about all that garbage's they're
not doing yet. This administration is not going to touch
those things. They are not now. They may get rid
of some waste, and why not. They should be getting
some rid of some waste. And I'm okay with that.
(43:22):
You know, it's almost fraud what's going on. And I'm
all in favor of term limits. Look, at these politicians
public servants that are multi millionaires. How do you become
a multi millionaire living on public servant petty?
Speaker 2 (43:40):
You can't.
Speaker 1 (43:41):
You can't unless there's something funny going on. You just can't.
And you know, you got the Bernie Sanders of the
world talking about you know how green he and aoc
are flying around in private jets and they're multi millionaires.
How does a see go from being a bartender to
(44:02):
being a multi millionaire in a few short years? Tell me, folks,
does that make sense to you? Bernie Sanders has three
homes and millions and millions and millions of dollars and
he's been a public servant his entire life? How does
that happen? The same with Chuck Schumer, And we can
go on and on and on and on and on.
Speaker 2 (44:21):
How does that happen?
Speaker 1 (44:23):
So, if we get rid of some fraud, if we
stop some some waste and get rid of some some
just fluff and needless stuff going on in Washington, that's
not bad and I'm not afraid of that. As I
said on the first half of the show, that'll actually
be good for our country. At the end of the day,
(44:44):
we'll be better off for it, we'll have to. Yes,
there's going to be some pain, short term pain for
long term gain. I truly, truly believe that. So the
jobs report showed that a lot of business leaders are
betting that Trump will will blank and he does. We've
seen him talk like a schoolyard bully and then he
(45:05):
backs down, but he gets people's attention, right, It won't
surprise me if you see real soon the war in
Ukraine and Russia, you know, come to an end. You know,
the Middle East. I mean, that's just always, you know,
just a firestorm ready to to explode even more, you know.
(45:29):
The if you look, it's it's consumer sent sentiment in
April hit one of the lowest levels on record, according
to the University of Michigan that releases that that survey.
And I'm not surprised that that with with as I said,
all the negative headlines and with what's what's going on.
(45:53):
But I am happy that that that that we're adding,
the jobs that we are in This country is just
as resilient as it is. This economy is as resilient
as it is. We are the greatest country in the world,
and we continue to be the greatest country in the world.
I'm very proud of that. One. Eight eighty two, five, five, nine,
(46:14):
four nine are the phone numbers. Let's go to the
phone lines where we have data from Clifton Park. Good morning, Dana.
Speaker 3 (46:22):
Good morning, how are you this morning? Sound good?
Speaker 2 (46:24):
I'm doing wonderful good.
Speaker 3 (46:27):
I have a quick, easy question about I have an
annuity from when I remember you don't you're not any
fond of annuities.
Speaker 1 (46:36):
Well, I'm not sorry, Dale, that's all right.
Speaker 3 (46:42):
I'm learning some of this stuff. But is it a
good idea or not? Just a good idea to dig
into the newity to pay off a mortgage?
Speaker 1 (46:52):
No, no, no, no, you probably have a low margage
rate unless you just got it and you have a
higher mortgage rate. But even remember even more margats. People
are going crazy because martgage rates are between six and
seven percent. But over time, long term, that's not a
bad mortgage rate. Remember in the eighties they were in
the twenty percent range. But unfortunately, over the last several
(47:16):
years we had mortgages two to three percent, four percent.
So what's your margage rate?
Speaker 3 (47:23):
It's round five right now, all right?
Speaker 1 (47:26):
So yeah, but it's still lower than the current rate,
and five percent is not that bad. If you have
a well diversified portfolio stocks and bonds and a balanced
growth and income strategy, you should be able to overtime
get eight percent on your money, which is more than
five percent, and you're probably going to have back end
(47:46):
fees and that annuity if you cash it in, so
be careful before you do it. Hey, Dana, we're coming
up to the end of the show.
Speaker 2 (47:52):
Folks.
Speaker 1 (47:52):
You're listening to Let's Talk Money, brought to you by
bouchetf and Inch Group, where we help our clients prioritize
to our help while we manage it's their wealth for life.
I can't thank you enough for tuning in every Saturday
at ten Sunday mornings at eight not nine at eight
am on Sunday mornings. Thank you for tuning in. We
got the Derby Day. You got my horse, Carson's run
(48:15):
racing in the tenth race at Aqueduct wearing my silks.
Let's hope he does well. Thank you for tuning in, folks,
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