The Good News You Might Have Missed

Episode Transcript

(00:00):
This is straight talk from the housewith certified financial planner Tracy Onton. Right
here, you're on thirteen ten WIBA. The website, it's Tantoninvestment House dot
com. Easy to remember, easyto spell, and I'll spell it out
for you. It's t A NT O N Investment House dot com.
Great website and resource to learn moreabout Tracy and the team. Also an
opportunity right online to schedule an appointmentat a time and a date that's convenient

(00:23):
to you. Of course, tAnton Investment House a fee only fiduciary with
offices right in Middleton. The telephonenumber for that office six oh eight five
zero one fifteen forty nine. That'ssix oh eight five zero one fifteen for
nine. And joining us this morningis certified financial Planner Tracyton. Tracy,
how you doing this week? I'mdoing great, Sean, how are you

(00:44):
doing? I'm doing really well.And uh, we've got I was just
kind of going over some of thenote it's some exciting and really interesting,
interesting stuff going on in the marketsright now. Let's talk a little bit
about this conversation we're going to havetoday and and and really kind of the
overall message to this this week's show, well, this week we're going to
talk about what's right with the world. You know, sometimes we watch the

(01:07):
news too often and it's mostly negativeand that can actually make us feel like
the investing is not a great placeto be. Even though markets are up,
you know, there's still always thisconcern and that might you know,
affect our long term investment strategies whenwe watch the daily news. Basically,
so, despite the US economy avoidinga recession and improvements and inflation in twenty

(01:32):
twenty three, many Americans still feeluneasy about the economy and markets because of
the negative news, and we justwant to focus on, you know what,
what's so good about it and whatwe're who's going to help us out
today is a capital group. They'vewritten an article called What's Right with the
World, and we're going to talkabout five reasons why we should be optimistic

(01:53):
about the future. And I thought, you know this, we'd like to
keep it positive here and these aresome good overall trends that we see and
we'd like to share that with you. It's going to be a great show,
and don't forget if you miss anypart of the program, you can
always listen back at Tantoninvestmenthouse dot com. That's t A N t o N

(02:13):
investment House dot com. Also,while you're there, you can get to
know Tracy and the team. Finally, if you're looking for money management or
portfolio management, it's super easy toschedule employment at a time in a date
that's convenient to you right online Tantoninvestment House dot com. That's t A
N t O N investment House dotcom. So let's talk about one of
the most important reasons to be hopefulfor the future. Tracy, Well,

(02:35):
it tends to be forgotten that theUS is by far the most powerful economy
in the world, and in twentytwenty three, investors, we're preparing for
a recession that basically never happened.And despite concerns about high inflation and increasing
interest rates, the US economy,measured by the GDP, expanded by an
impressive three point three percent annualized ratein the fourth quarter, basically showing some

(02:58):
pretty unexpected resons millions. And theAmerican consumer sector is still going strong,
with the economy adding three hundred andfifty three thousand jobs in January and wages
rising by four and a half percentcompared to the previous year. Although this
pace of growth really is expected toslow down, ongoing moderate gains and employment

(03:19):
and income can continue to support consumerspending. So additionally, you know,
inflation looks like it's easy. Realincome growth, especially with lower income workers,
is likely to improve. So eventhough, like I said, there's
a lot of negative news about what'shappening in Ukraine and the Middle East,
and tensions between the US and China, and you know, obviously the presidential

(03:43):
campaign, which is going to bepretty heated this year, you know,
just the overall economy is looking reallyhealthy. It's great right now. It's
good. It's good stuff to hearand good stuff to think about. And
as we as we look at thisarea, Tracy, I know, one
of the things that I hear alot of grousing about is is the housing
market and the housing sector. Whatare we seeing in the housing sector kind

(04:03):
of the realistic world of what's goingon there, as well as in manufacturing.
Yeah, so there are shawn positivesigns in the housing market as mortgage
rates decrease and manufacturing activity is alsopicking up with businesses starting to replenish their
inventories. The US government's commitment ofone point four trillion of two capital projects

(04:26):
also including building manufacturing facilities, reflectsthis effort to diversify the supply chains and
support economic growth. That's great tohear. As we talked with certified financial
planner Tracy Anton here on thirteen tenWIBA always array of sunshine, some great
information, some great news that youmay not be may not be hearing about

(04:47):
as much as you should, aswe talk with certified financial planner Tracy Ant
on the website Tanton Investment House dotcom. Telph number six oh eight five
zero one fifteen forty nine. That'ssix h eight five zero one fifteen for
nine. Anything anything good from theFederal Reserve, any news we need to
be aware of their Tracy Well,you know, the Federal Reserve strategy shown

(05:08):
to balance reducing inflation while sustaining economicgrowth. This is called what soft landing.
Seems to be effective so far,and although inflation remains above the fed's
two percent target, the central banksactions have potentially set the stage for a
prolonged period of economic expansion, thoughit's uncertain when they might start decreasing interest

(05:30):
rates. You know, that's thebig question everyone's talking about. You know,
when will they decrease interest rates.You know, maybe the rates will
be higher for longer, but stillthat doesn't mean that that stocks can't do
well in that environment. One ofthose things they like to say is stay
tuned on that one for sure.Yeah. So we talked morning with sortified
financial planner Tracy Enton here on thirteenten WIBA. What's interesting, Tracy is

(05:57):
off the air, you and Itend to talk a lot about technology,
kind of neat little things that justbecause you're a tech you're a tech guide.
I mean you have stuff that,like, you know, ten years
before and I'm like, huh,I didn't know that you could have a
notebook that you know, you couldyou could just swipe clean and then start
again. Like that's so cool.There is so many cool things out there.
And as we talked that about thatsector, let's kind of break down

(06:20):
technology and that boom and the effectthat that has had on the economy from
notebooks to cars. Well, again, this is a capital of Group's opinion,
But the AI productivity boom is justbeginning, they said. The introduction
of chat, GPT and other artificialintelligence tools have really attracted significant attention due
to their potential greatly enhanced productivity acrossvarious industries. So this technology promises to

(06:46):
lower costs and boost efficiencies for bothcompanies and consumers. You know, it's
common for us to overstate the immediateimpact of technology will underestimating its long term
effects. So for investment is thechallenge lies really in discerning between exaggerated hype
and genuine investment opportunities. But whenyou think about jet, Chat GPT,

(07:10):
it's really only been about a yearand it really hasn't been It really isn't
about the hype. You know,in sectors like healthcare, financial services,
retail companies are already leveraging AI toautomate intricate tasks, streamline processes, and
expediate technological advancements. So they areusing AI, and it has been less

(07:32):
than a year since AI, ourChat GPT has come out. Let's talk,
then, Tracy, about some examplesof you know, you mentioned some
of the some of the features ofchat, GPT and AI. How are
we seeing some examples of how AIis being used by companies. Yeah,
So, for example, MasterCard isutilizing generative AI to simplify its employee recruitment

(07:58):
procedures and to detect payment fraud withinits networks. I thought that was interesting.
Amazon, known for its AI drivenproduct listings and recommendations, is employing
AI at its Amazon Ghost stores,allowing customers to pick items and pay via
the Amazon app bypassing the checkout lines. That's pretty cool. I've never gone

(08:20):
to one of those stores, butthat would be neat. You know the
other thing about Amazon when I wason it, you know, you have
all these summers. You might havea thousand reviews we at the top.
Have you ever noticed on you'll havea sum It has a summary now of
what they think, what most peopleare saying about the product x y Z.
So I thought, well, that'sgot to be an AI thing as

(08:43):
well. You know, nobody's summarizingit. Nobody's sitting there summarizing it.
I think there's a small It's interestingyou say, because I think there's actually
a small little thing underneath there thatsays says like AI general or so I
maybe maybe that's why I knew that. Okay, yeah, that's yeah,
And for that's helpful, Yeah,really help We haven't seen that. You're
right, it's absolutely all. It'svery very neat because it's, as you

(09:03):
mentioned, some of these products you'relooking to. You know, there's a
thousand reviews and of course exactly,and you don't have I mean, by
the time you go to your thirdproduct that you're buying, you're you're exhausted
and you're thinking yourself. I justwant to I just want to know the
answer. You know, which whichthis you know, which tool is going
to work best? You know,and why and what happened? You know?

(09:26):
I have a I did. Idid an airbnb about six months ago,
and it was to a tropical island. And I went with some colleagues
and they picked out a place.We spent the same amount of money.
They came to into my place andsaid, oh my god, like this
place is amazing and I said,well thanks, I said, didn't you

(09:48):
We went looked at it the sametime on the same site and I said,
well, are you reading reviews?And they said, oh no,
we hadn't read the reviews. Isaid, well, you know, because
you know their place that it wasnext to, you know, right on
the beach. Well it wasn't righton the beach, you know, so
you've got to You've got to readthe reviews. But if you don't have
time, that AI feature you know, it could be super helpful, but

(10:11):
it's not. It's and it's justnot just in that area. I mean
in healthcare, hospitals, medical providers, they're all using AI to streamline documentation
and administrative task you know, obviouslyreducing the need SHN for you know,
physicians notes, yeah, during patientpatient visits and addressing staffing shortages. All
these things matter. And you know, I'm excited to see how it's going

(10:35):
to transform the financial industry as well. It is absolutely fascinating and amazing stuff
going on right now. A lotof really good news, and we're going
to talk more about some great newsuff with certified financial planner Tracy Onton right
here. We'll touch on the stopstock market and some other things as well.
In the meantime, if you haven'tbeen to the website yet, you
need to head on over there nowTanton Investment House dot com. That's t

(10:58):
A N T O N investor minhousedot com. Looking for money management or
portfolio management tracing. The team wouldlove to get to know you, they'd
love to work with you again.It all starts with a stop at Tanton
Investment House dot com or call theoffice right in Middleton six h eight five
zero one fifteen forty nine. That'ssix oh eight five zero one, fifteen
forty nine. More straight talk fromthe House with certified financial planner Tracy Anton

(11:20):
continues next here on thirteen ten wuib A. Straight talk from the House
with certified financial planner Tracyanton. Hereon thirteen ten wui b A. Talking
this week with Tracy about gets godof the future outlooks and some of the
positive news that maybe maybe being missedby many. Obviously negative news gets all

(11:41):
the headlines, gets all the attention. There's some really really great stuff out
there as we talk with certified financialplanner Tracy Anton here on thirteen ten wu
I B A. The website TantonInvestment House dot com. That's t A
N t O N Investment House dotcom. And the telephone number for the
office right in Middleton six wait fivezero one fifteen forty nine. That's six

(12:01):
soh eight five zero one, fifteenforty nine. Let's talk about the stock
market, Tracy, what changes havewe seen there? Well? Last year
sean stock market surprise investors by deliveringremarkably strong returns. The SMP five hundred
index, which represents you know,supposedly five hundred stocks, but it also
has a lot of dollars in particularlyseven stocks called the Magnificent Seven, Apple,

(12:28):
Meta, Microsoft, Navidia, Amazon, Alphabet, and Tesla. They
were responsible for about seventy percent ofthe overall market gain last year and last
year. The market gain in twentytwenty three for the SMP five hundred was
twenty six point twenty nine percent.Also, the actually the MSI All Country

(12:48):
World Index excluding the US also didwell. It did fifteen point six two
percent, So you know, peoplewere really a surprised that markets did this
well. But then when you takea look at it and say, well,
okay, what stocks underneath in theS and P five hundred did well?
You found seven stocks that really accountedfor about seventy percent of the gain.
And now those seven stocks represent aboutthirty percent of the S and P

(13:11):
five hundred. So you know,people are concerned, a did I miss
out on return? Because if Ididn't get twenty six percent last year on
my return, you probably didn't getthat kind of return if unless you owned
only the SMP five hundred, oryou owned those individual stocks as well plus
the SMP five hundred or something.Some combination maybe even did better because you

(13:35):
own those individual stocks. But Ijust want to say that, I mean,
if you're feeling that way, it'sbecause that in the SMP five hundred
as well as the twenty nine hundredother stocks in the MSCI World Index,
they all stayed relatively flat this year. So why am I bringing this up.
It's because the improving economy in theUS is boosting corporate earnings for a

(13:58):
wide range of companies currently, soanalysts on the Wall Street on Wall Street
anticipate earnings growth across major markets thisyear. So the Capitol Group thinks more
stocks are really poised to join themarket rally, which is really good because
we have extremely narrow market right nowas far as what's doing well, and
that's not a healthy place to belong term. So we want the market

(14:22):
rally to be more broad, andso that's what Capitol Group is saying.
There's a lot of room to runhere on other sectors. So again,
stay diversified. You know, it'sa remarkable success that these top companies called
the Magnificent Seven. You know,perhaps it's justified that they have had this
kind of because they had so mucheconomic value with AI and the excitement there

(14:46):
and all these innovations. Perhaps theirprices are not over prices, but you
know a lot of people are thinking, hey at pees over thirty. You
know, take on the second lookand don't be too concentrating only in those
stocks. So that's what I think. I think. You know, you
just have to be careful, butbe optimistic because there's so many sectors that
really were flat for the year andindustries that are really quite good. And

(15:11):
we have some examples here too,I believe, And yeah, I want
to talk to you too about Tracyabout you know, we think about innovation.
We oftentimes think about the tech sectorobviously that leads the way, but
a lot of different industries we're seeinginnovation, aren't we, Yeah, exactly.
You know, innovative companies can befound across various industries and market shaw
and implementing strategies to expand. SoI got an example here of US Carrier

(15:37):
Global. They make air conditioning systemsand they're experiencing high demand for energy efficient
products due to rising global temperatures.Now, don't go out and buy US
Carrier Global. I'm just saying that'san example. Okay. Another example is
king Span, which is an Irishinsulation company. They've developed synthetic siting panels
to enhance building energy efficiency. Anotherone is in is SMC leads. It's

(16:02):
a factory automation components. And againthese examples show that innovation and growth opportunities
are not just limited to top companiesoffering. You know, there's some diverse
we can be diversified in our portfoliosthat make the portfolios healthier, less volatile,
because you don't want to be caughtin a tech bubble. Okay,
But the other optimistic thing here isis, hey, we got a lot

(16:25):
of room to run still in marketsbecause most of the stocks, you know,
they were flat last year, sothey have ability to go up if
earnings are going to go up.Just amazing stuff, and we're going to
have to wrap it up there.There's so much more good news as well.
We'll probably pick up do a segmenttwo on the next program. In
the meantime, if you haven't beento the website yet Tanton Investment House dot

(16:45):
Com, head on over and getsno Tracy and the team. You can
of course listen back to this inprevious shows podcasts as well. That's T
A N T O N investment Housedot com. Also, if you're looking
for money management or portfolio management,you can schedule deployment right online. And
I'm in a date that's convenient toyou that website tantoninvestment House dot com or
pick up phone. Give me acall right at the office in Middleton six

(17:07):
oh eight five zero one fifteen fortynine. That's six oh eight five zero
one fifteen forty nine, Tracy.You enjoy this beautiful day and we'll talk
real soon. Sounds good, Sean, Thank you. Daniel Donald comes your
way next here on thirteen ten.Wiba