Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Six twenty three. So O time here in Houston's morning news.
The bad mood comes when the stocks go down and
the prescriptions go up. I guess bad Shin joins us Kat.
Good morning, Jimmy, Good morning our KTRH money man. We
shouldn't be surprised by this, should we not at all?
Speaker 2 (00:14):
In fact, I'm a student of the markets, and one
of my favorite areas is what we call behavioral finance.
And there's been a lot written over the years on
this particular topic. One of the things. So I'm not surprised,
but I have been in the business long enough. In
the old days, remember we got a quarterly statement in
the mail. There was no Internet. It showed the number
(00:35):
of shares that you had, and then you got out
your Houston Chronicle, you got out your Texas Instruments calculator,
you multiplied it out, and then you got your account
value at the end of the quarter. Today, of course,
you've got it on your phone, You've got it on
the desktop of your computer. And you know, when I
talk to people today, Jimmy, they talk about how much
(00:58):
they quote made or lost.
Speaker 1 (01:02):
I know.
Speaker 3 (01:02):
And you can set your phone for alerts too, so
you could really panty. So people what stocks go down
and all of a sudden they start going to the
doctor and needing antidepressants. Is this what this correlation is?
Speaker 2 (01:17):
Yep. So, being a student of behavioral finance, your brain
the same things the good Lord gave us to keep
us from running out in the cold with no clothes on,
or going out and running out in traffic in front
of a car, unfortunately causes to shoot ourselves in the
foot when it comes to finance. When things go up,
(01:38):
when the market goes up like it's going up now,
we're geared to believe that it's going to continue to
go up. In fact, we're very surprised when it doesn't
well on the downside, shaah. When markets are going down,
we're geared to believe that it's only going to get worse.
And of course, if you're in that age forty five
to fifty five, that's according to this study, that's when
(01:59):
you're most depressed. And so what do we do as investors?
Remember I've quoted for this statement for Warren Buffett. Many
many times be greedy when others are fearful, and fearful
when others are greedy. I follow investor sentiment on a
weekly basis. It's part of the work that I do.
And of course right now investors are extremely optimistic. Market
(02:24):
hit new all times highs last Friday.
Speaker 1 (02:26):
You know, I want to ask I know this is
not about politics, but I do want to ask you
this before we let you go, because there's all okay,
a whole lot of stock that's being put into you know,
woodstocks are going up, woodstocks are going down. The betting
market on who is likely to win to the election,
how accurate do you think that stuff is?
Speaker 2 (02:44):
So short term, it's a course showing that the market
believes that Donald Trump is going to is going to win.
I'll give you a quick idea. Let's look at energy.
Let's look at traditional energy, which would be exon, Chevron, kanicco.
Look at clean energy, which would be windmills and solar.
During Donald Trump, traditional energy dropped forty percent and clean
(03:10):
energy went up three hundred percent. Under Joe Biden, traditional
energy went up one hundred percent and clean energy went
down fifty percent. Longer term, so Jimmy, there's going to
your point, there's going to be a knee jerk reaction
with the election the day after. If Donald Trump wins
(03:30):
you're going to see the private prison stocks go up,
you're going to see the solar stocks go down. But
longer term, it's the fundamentals. And so remember under Donald Trump,
we had COVID, we had a global pandemic which shut
the world down. Oil went down to basically zero temporarily.
(03:51):
Under Joe Biden the economy opened up. It wasn't them,
it was the underline fundamentals, or what I would call
the big pictures. That's my advice.
Speaker 3 (04:01):
The problem for a one K is a lot of
it is not individual stocks. You're having to buy index
funds and everything, and you're at the behest of whoever
is managing your for a one K and whether it's
bonds or whatever.
Speaker 2 (04:13):
That's right. And so to your point, Sharah, most professional
money managers are not going to make trades around this.
But to Jimmy's point, right now the market is acting
like Trump is going to win. I would not as
an investment advisor, I would not recommend people try and
trade around the presidential election. You know, there's a lot
(04:33):
of studies. In fact, I was on a conference call
yesterday that showed what the market does when the incumbent wins.
If the Dow Jones Industrial average is positive over the
previous eleven weeks. The incumbent wins. It's positive right now.
If you follow that, it says Kamala Harris wins. But
remember this is a very different election this year. We
(04:55):
really don't have an and we don't really don't have
an incumbent. Nope, we don't. All right, Pat good, Hey guys,
appreciate Happy Friday. Have a good week you too. Patchin
k t r H Money manag
Six twenty three. So O time here in Houston's morning news.
The bad mood comes when the stocks go down and
the prescriptions go up. I guess bad Shin joins us Kat.
Good morning, Jimmy, Good morning our KTRH money man. We
shouldn't be surprised by this, should we not at all?
Speaker 2 (00:14):
In fact, I'm a student of the markets, and one
of my favorite areas is what we call behavioral finance.
And there's been a lot written over the years on
this particular topic. One of the things. So I'm not surprised,
but I have been in the business long enough. In
the old days, remember we got a quarterly statement in
the mail. There was no Internet. It showed the number
(00:35):
of shares that you had, and then you got out
your Houston Chronicle, you got out your Texas Instruments calculator,
you multiplied it out, and then you got your account
value at the end of the quarter. Today, of course,
you've got it on your phone, You've got it on
the desktop of your computer. And you know, when I
talk to people today, Jimmy, they talk about how much
(00:58):
they quote made or lost.
Speaker 1 (01:02):
I know.
Speaker 3 (01:02):
And you can set your phone for alerts too, so
you could really panty. So people what stocks go down
and all of a sudden they start going to the
doctor and needing antidepressants. Is this what this correlation is?
Speaker 2 (01:17):
Yep. So, being a student of behavioral finance, your brain
the same things the good Lord gave us to keep
us from running out in the cold with no clothes on,
or going out and running out in traffic in front
of a car, unfortunately causes to shoot ourselves in the
foot when it comes to finance. When things go up,
(01:38):
when the market goes up like it's going up now,
we're geared to believe that it's going to continue to
go up. In fact, we're very surprised when it doesn't
well on the downside, shaah. When markets are going down,
we're geared to believe that it's only going to get worse.
And of course, if you're in that age forty five
to fifty five, that's according to this study, that's when
(01:59):
you're most depressed. And so what do we do as investors?
Remember I've quoted for this statement for Warren Buffett. Many
many times be greedy when others are fearful, and fearful
when others are greedy. I follow investor sentiment on a
weekly basis. It's part of the work that I do.
And of course right now investors are extremely optimistic. Market
(02:24):
hit new all times highs last Friday.
Speaker 1 (02:26):
You know, I want to ask I know this is
not about politics, but I do want to ask you
this before we let you go, because there's all okay,
a whole lot of stock that's being put into you know,
woodstocks are going up, woodstocks are going down. The betting
market on who is likely to win to the election,
how accurate do you think that stuff is?
Speaker 2 (02:44):
So short term, it's a course showing that the market
believes that Donald Trump is going to is going to win.
I'll give you a quick idea. Let's look at energy.
Let's look at traditional energy, which would be exon, Chevron, kanicco.
Look at clean energy, which would be windmills and solar.
During Donald Trump, traditional energy dropped forty percent and clean
(03:10):
energy went up three hundred percent. Under Joe Biden, traditional
energy went up one hundred percent and clean energy went
down fifty percent. Longer term, so Jimmy, there's going to
your point, there's going to be a knee jerk reaction
with the election the day after. If Donald Trump wins
(03:30):
you're going to see the private prison stocks go up,
you're going to see the solar stocks go down. But
longer term, it's the fundamentals. And so remember under Donald Trump,
we had COVID, we had a global pandemic which shut
the world down. Oil went down to basically zero temporarily.
(03:51):
Under Joe Biden the economy opened up. It wasn't them,
it was the underline fundamentals, or what I would call
the big pictures. That's my advice.
Speaker 3 (04:01):
The problem for a one K is a lot of
it is not individual stocks. You're having to buy index
funds and everything, and you're at the behest of whoever
is managing your for a one K and whether it's
bonds or whatever.
Speaker 2 (04:13):
That's right. And so to your point, Sharah, most professional
money managers are not going to make trades around this.
But to Jimmy's point, right now the market is acting
like Trump is going to win. I would not as
an investment advisor, I would not recommend people try and
trade around the presidential election. You know, there's a lot
(04:33):
of studies. In fact, I was on a conference call
yesterday that showed what the market does when the incumbent wins.
If the Dow Jones Industrial average is positive over the
previous eleven weeks. The incumbent wins. It's positive right now.
If you follow that, it says Kamala Harris wins. But
remember this is a very different election this year. We
(04:55):
really don't have an and we don't really don't have
an incumbent. Nope, we don't. All right, Pat good, Hey guys,
appreciate Happy Friday. Have a good week you too. Patchin
k t r H Money manag
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