11/22: Market Update

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Episode Transcript

Speaker 1 (00:00):
Go up, Hello, and welcome to Money Talks with Terry
Sandbold and Blake saandpleg and make sure we've got a
lot going on around for these last couple of weeks.

Speaker 2 (00:07):
Before we get into our topic today, which is a
market update. We had a huge event that we were
participants in just on November fourteenth, Friday at the Omni
Viking Hotel. We gathered five hundred of our closest friends
with one mission, and that was for the American Cancer
Society Annual Gala. And my wife and I I are

(00:30):
Linda and I. We were the chairs for that event
and we were also the champion sponsor of that event
along with many other key companies such as Summit Companies.
They were the presenting sponsor and two of the other
big sponsors that are always sponsors with us is renewed
by Anderson and Sleep Number. But one of the things

(00:51):
was our goal is to provide funds and support for
what's called the Hope Lodges of Minnesota, which is Minneapolis
and Rochester. And these are four people that are dealing
with cancer. It's for their families that are traveling with
them and staying with them during this very important transition.
Of their lifetime, and what we do is we raise

(01:14):
funds so that can be a no cost to them
to stay and for meals, for lodging all of that.
So our goal is to really raise as much money
as we can, and we accomplished a goal this year
that we have never accomplished before.

Speaker 3 (01:32):
So here is just a.

Speaker 2 (01:33):
Quick highlight of our successful night raised.

Speaker 1 (02:00):
That was quite exciting. I remember right before you guys
went up there, Terry, the the MC was going, Oh,
the calculators are going, and they were. You could see
all these people frantically, you know, adding things up, and
then you went up and you were waiting for the numbers.

Speaker 3 (02:14):
It was crazy. Yeah.

Speaker 2 (02:17):
I was standing just off stage with the person with
the calculator getting her computer and everything. She was getting
numbers in no pressure, gardening her as we were speaking,
because we just got done with what's called the paddle
rays where everybody in there could raise her funds as well.
So the auctioneer was going through and she was naming
the numbers on the on the paddles as fast as

(02:39):
she could, and they were just trying to get all
these numbers. So it actually went over the number that
we announced, but which is a very good thing. But
goals are made to be broken, let's put it that way.
And we set a really high goal. I remember about
a year ago and we were talking as a group
as far as what would be the goal, and I'm
keep the number there, but basically I set a number

(03:04):
that they didn't expect me to say, and they're kind
of looking at me like, are you sure you want
to go that high? I says, if we never we
were never set the high goal, we're never going to
attain that high goal. So anyway, we did raise over
one million dollars in one night for the American Cancer Society,
and that was fun to do that with less than
just to shade, less than five hundred people. So a

(03:26):
lot of commitment in that room, a lot of energy
in that room, a lot of dedication in that room.
And all the people in that room also dealt with
cancer in one fashion or another, family, friends, co workers, etc.
So we need to fight that off. I gave a
talk about that, Linda gave a talk about family members
that dealt with that. But everybody does have somebody they

(03:48):
know that is dealing with cancer. So it's a well
worth cause. If you'd like to participate. I just have
to know who the co chairs are going to be
next year, and it will be Linda and myself, So
we're going to go after that. Pies to go blake, right,
So if you'd like to participate, give us a call
and we'd get you on one of our committees. And

(04:09):
if you liked a sponsor, that'd be great as well.
We had many, many, many sponsors. I just named a couple.
But what an event. We can't say too much about it. Uh,
you know, you never can say too much about it,
is the bottom line. But together, hopefully we don't have
to talk about cancer ten years from now. So let's
let's let's go after that. So I think everybody that

(04:31):
did participate just wanted to bring that up because it
was a fun, fun, fun event, you know. Well, well, well,
and it's great, Terry.

Speaker 1 (04:37):
I mean, this just started a few years back and
it was yeah, it was. And to go from that
where we started to a million dollars I was at
the first one with you, to over a million dollars
and seven years is absolutely admirable.

Speaker 4 (04:52):
Well, you know, I think it does really go to
show that generosity is alive and well and you know,
that's it's great to see that. It was great to
see that energy, excitement and uh, you know, I think
people come together and you had around a great cost so.

Speaker 2 (05:08):
Which so a lot to talk about, which we talk
about goals and in regards to your financial future, we
all want you to have goals. We all want you
to achieve your goals. We want you to set the
goals first. I guess that the bottle and make a plan,
put a plan together. That's implement the follow up on

(05:29):
the plans, right, Blake. That's the simple sounds real simple,
but it's it's.

Speaker 3 (05:33):
Not well said.

Speaker 4 (05:34):
So yeah, I mean, you know, think about plans and uh,
you know, being on track or not.

Speaker 3 (05:40):
We thought we'd talked a little bit about the market.

Speaker 4 (05:42):
Today and uh, you know, it's it's it's obviously been
an interesting year.

Speaker 3 (05:46):
I mean there's uh, it's remarkable.

Speaker 4 (05:48):
We're already coming up on Thanksgiving and you know there
there's been a lot of headlines, a lot of a
lot of different events this year. I mean, Tariff's, geopolitics,
new presidents. You know, the list can go on and on.
But you know, as we look at things right now,
you know, this is something we put out in our
our last newsletter. There's a lot to be thankful for,

(06:11):
you know, point to points in the market this year.
You know, it's it's actually been been a good year
for stocks, point to points, and but you know, recently
we've had a little bit of choppiness. Let's come back,
and you know it's something where I think it's you
can always tell people, well, it's it's natural to see
some of that choppiness or you know, some some downside

(06:31):
in the markets.

Speaker 3 (06:32):
But it never feels.

Speaker 4 (06:32):
Good when it happens right, never feels good, never feels right.
It always feels like this is going to be different.
And you know the part that is different is that
it's always gonna be a different cause, different catalyst. You know,
there are growth concerns, et cetera, all you know, hit
at once, and you know that that's kind of what
we've seen over the last couple of weeks. But we
think through that we're still seeing some opportunities. So we'll

(06:55):
discuss a little bit further. You know what some of
those risks are where we're seeing opportunities, what economic data
that we're looking at right now. So it's a finally
got we finally got some and you know, it's it's
it's two months old, but you know, we're starting to
get some of that data coming out. And you know,
it was the unique thing of having the government shut

(07:15):
down for forty three days. I mean, there there is
a little bit of an economic data void out there.
And you know, the the jobs report you're right, Kelly,
was was recently released this week, this last Thursday, but
as September Jobs Report, and you know, they came out
and said October will will not be released, will never

(07:36):
be released, and you know, there there was they were
essentially able to collect half the data that that they
wanted to. So there's there's kind of two different parts
to the to the data and survey collection on that
and one side just there they aren't able to get
and you can't retroactively attain it. So it will be

(07:58):
kind of unique looking at things. So I think, you know,
private reports like ADP data is probably going to be
increasingly relevant. And there are you know questions around that
with with the BLS beer of labor statistics revisions that
have happened over this last year, you know, should we
be looking more at private reports?

Speaker 3 (08:17):
Well, we probably will for the next couple of months.
Just because it's going to there's no choice.

Speaker 4 (08:22):
You know, we'll we'll, they'll start to catch up again
in November December data as it comes out, but from
a continuity standpoint, people may look to other surveys and
im surveys as well and.

Speaker 3 (08:34):
Kind of a whole gamut. We'll go through that today.

Speaker 1 (08:36):
Wow, Okay, so other thoughts about you know, post shut
down Blake, just a little summary of you know what
what you noticed right away once it ended, and we
don't have a lot of time, it's not that far
in the rearview.

Speaker 2 (08:50):
Met Yeah.

Speaker 4 (08:51):
Yeah, Well, you know it was interesting going into it.
You know, there's a lot of concern of saying, well
should I sell ahead of this and just kind of
wait it out, and we actual you went back through
the data and you looked at the last you know,
coming into this or the last nine shutdowns, eight of them.

Speaker 3 (09:06):
Were positive for for markets.

Speaker 4 (09:09):
You know, mark and markets performed positively over that timeframe.
So it's kind of we're like, well, statistically we should
actually always be invested in during that time that's a
pretty good period. You know, market return over two percent
over that timeframe. So now we're at nine out of
ten positive market periods during a government shutdown, which is
just you know, it's interesting, but you know, I do

(09:33):
think uh clearly what you're going to.

Speaker 3 (09:36):
See from that.

Speaker 4 (09:36):
You know, they're spending did dip during that, you know,
you know, as people were furloughed and everything. There's there
was a wage impact at that stage and ended up
you know, it's in certain parts of business impact as well.
You know, if you're looking for certain government approval on things.

Speaker 3 (09:54):
Uh, some of that did slow.

Speaker 4 (09:56):
So I think you'll probably see economic data slow during
the fourth core. You know, it probably slows kind of
one and a half to two percent growth type range.
But the key thing then will be first quart of
next year, how does that bounce back? And you know
that that probably is what happens. So it just continues
some of the unique choppy data that we're going to

(10:17):
see this year, but more will come over the next
five months on that.

Speaker 1 (10:20):
That's when we'll get a good look at it. Let's
go ahead and take a quick break here on Money Talks,
and we've got more market update in just a moment.
More market update in just a moment. Welcome back to
Money Talks with Terry Sandbold and Blake Sandbold and today

(10:41):
we're talking we've got a market update, and I think
it's quite timely. Terry.

Speaker 2 (10:45):
Absolutely, there's a lot of things going on, a lot
of people watching. If you're not watching, you should be
watching or working with an advisor that is watching. Let's
put it that way. If you we do have a
Money Talks mailer of the Week this week, which is
our newsletter from our company. So if you were looking
for our thoughts and we're going through some of them today,
but if you'd like a copy of that, give us

(11:06):
a call at nine five two five four four two
eight three seven. Again, Sandbled Financial Group's phone number is
nine five two five four four two eight three seven,
or you can request it online also at sandbldfg dot com.

Speaker 3 (11:22):
Perfect.

Speaker 4 (11:24):
So, uh, it kind of as we had been talking,
markets have obviously been a little bit choppy over the
last couple of weeks, so we thought we'd outline, you know,
what are some of the key things causing that, and
you know, where do we see some things going forward
from here? So you know, as we kind of look
at probably for the larger issues out there or things

(11:45):
that people have been watching. First is really conversations all
of a sudden started creeping up everywhere. Are we in
an AI bubble? And you know, I think that's been
forefront for a lot of people. You know, are there
issues popping up in the credit markets? What's the Fed
going to do with interest rates? And what are what
is the Supreme Court going to do with tariffs? So

(12:06):
those are those are you know, four pretty big things
to be thinking through. So you know, you look at
a little bit of choppiness in the market. You know,
it's clear as things are digesting that you know why
why people are starting to say why some skittishness you know,
returned all of a sudden, and you know it went
from market's feeling very strong, robust. But we have, you know,

(12:27):
internally seen some breath deteriorate over the last couple of months,
meaning that there were less and less stocks participating in
the rally. And uh, you know that's that's a key
factor in something we're going to want to see reverse.
You know, for that the markets have a sustained move
higher and we we think it's possible that it can reverse.
But you know there'll be uh signposts that we'll be

(12:47):
looking at for that. But I think, you know, starting
to look through each one of these points. You know
that the AI bubble, I think, uh, you know everyone
is a lot of people have been looking and trying
to draw comparisons between dot com bubble and or you
know two thousand and you know, does this look the same?
You know, you've seen this massive wave come into these

(13:10):
companies and everything, but you know, in our minds, you know,
you look at it, the construction is very different. I mean,
during the dot com days, you had a lot of
companies being valued off of eyeballs, meaning how many eyeballs
were looking at web pages. There was you know, what
do you hear about revenue or earnings on that? Well nothing,

(13:30):
you know, these companies didn't have anything, but it was
you know, solely valued. Looking at that for for some
of the companies at least, you know that that clearly
is an insane bubble. You know, there's there's nothing, no
true fundamental underneath it. But you look at a lot
of the AI craze that is happening right now. Are

(13:50):
there spots? Are there individual companies that you know are
are probably bubbly out there.

Speaker 3 (13:55):
Sure, you know there there will always.

Speaker 4 (13:57):
Be companies that's uh, you know, are our Apple so
to speak, and you know that that will work its
way through the system. But you look at overall, you know,
price of sales, price to earnings on a lot of
these companies, uh, some are trading at high multiples. But
spending is there, you know there there actually is spending
coming through and you know, you look at long term

(14:18):
projections for how this could impact GDP. There there's a
sustained long term impact. So you know, we we do
think it is you know, still very different from that
from a from a full fledged all on bubble, but
I do think there are certain pockets out there where.

Speaker 3 (14:33):
It needs to be.

Speaker 4 (14:35):
You need to be cautious about valuation, you know, especially
when you're looking at individual companies, but you know it
is going to be a long term growth driver and
you know it will change how a lot of business
has been been done.

Speaker 3 (14:48):
And you know, it's it's kind of interesting.

Speaker 4 (14:51):
You know, people have been talking about the K shaped
economy over the last number of last couple of years
and and shown reports on that, and essentially what that
does is look at you know, the K is you
know on the upside. As you look at the S
and P return over the last number of years, you know,
it's been a strong couple of years, and on the downside,
you look at job hiring growth and or you know,

(15:14):
Jolts numbers or you know, you can kind of overlate
with a couple of different metrics like that. And at
that inflection point was chat GPT being unrolled, and so
it's kind of saying, well, is AI creating this disparity
out there where there's less need for workers? And you know,
it's gonna be tough to say on that. There probably
is some truth in there. For sure, there will be

(15:37):
job change, job displacement that comes. But you know, especially
when you look at when that happens. You know, we've
talked about the Jolts numbers for years. Twenty twenty two
was an extreme high, you know, as a kind of
a hangover to an extent from twenty twenty with with
massive hiring, remote work and everything where everyone wanted to

(15:57):
hire as much as they possibly could. So makes sense
to see some of that settle back down. You know,
that's that's a normal thing that we probably should see.
So the question going forward will be how does that normalize.
You know, we obviously still need workers and employments and
everything out there, So where does some of that job
displacement go in certain areas that they have it, So

(16:19):
that'll be the key thing we watch on that side.

Speaker 2 (16:20):
And some companies always look at what's newer, faster and cheaper,
you know, kind of and kind of looking at that,
But does that mean it's better? I mean, it can
hit those criteria, but is it truly better? So, I mean,
I think, you know, the manufacturing side, of course, is
going to be one that's going to be challenged with
is it going to be people or is it going
to be machines? More and more so ten years from now,

(16:43):
the manufacturing plants will look totally different than they have
over the last ten, fifteen, twenty years for sure, So
looking at how it is going to be efficient, how
it's going to change the world. Also as people as
well as kids go through school, what is going to
be their priority and what they should learn about for
future jobs. Also maybe one thing to consider are they

(17:07):
going to be more of a technician than they manufacturer?
You know that type of thing, or you know, some
things that are going to still need the people no
matter what. So it's kind of looking at how does
the world change there for the young crowd too, I
think that's going to be ever changing. They're going to
have to keep looking at what's what class should I

(17:27):
take so to speak going forward? If you know what
I mean there.

Speaker 4 (17:31):
Yeah, I think it will go through a lot of changes.
And you know, I think prompt writers for you know,
large language models and everything is you know, will be
increasingly important going forward.

Speaker 3 (17:41):
So roles dynamics will change.

Speaker 4 (17:43):
But you know, I think for people and companies that
can embrace both sides, that's probably where you come out ahead.
You know, it's embracing the new technology, but increasing uh,
you know, embracing the human aspect of it as well.

Speaker 1 (17:55):
So yeah, it's a it's a very interesting thing. I mean,
I can see how in some fields the AI can
be kind of a bridge or an assist, but it
can't do the whole lifting, like for a marketing department
or what have you. Can it pull some research for
you go a lot faster.

Speaker 3 (18:13):
You bet it can.

Speaker 1 (18:14):
Can it give you some ideas if you're staring at
the blank page?

Speaker 3 (18:17):
Yep?

Speaker 1 (18:17):
But is it is it a good idea to completely
rely solely on that? No, because everything will start to sound.

Speaker 3 (18:23):
The same, right, I think, So, you know, I think
to be creative.

Speaker 4 (18:27):
You need to do something unique to stand out, and
I think there is still a human aspect in that,
but it's definitely believe that you got to bridge both together. Yeah,
and you know that you'll need that to move forward
in this environment.

Speaker 1 (18:41):
So absolutely, well, we got to take a break here
in just a moment for some news. But final thoughts
on AI. If someone is that kid Blake trying to
decide what to take, how would you even suggest they
go to research that?

Speaker 4 (18:53):
You know, yeah, just as no, you know, I think
it's uh. I think it would be helpful to look at,
you know who who are the key thought leaders out there?
And you know there there's a lot of great people
in the space. You know, talk to business leaders and
look for where they're seeing growth patterns and where they're

(19:17):
they're investing in their business. You know, I always think
we always talk on the business side looking up the
supply chain to see what companies are doing. I think
that's where you want to be looking and you know,
try to find the spots and be creative about what
what still needs human aspect, what can't go away on that,

(19:37):
but what can be leveraged more with AI? And you know,
I I think it's something where it's just, uh, we
all need to spend time.

Speaker 3 (19:45):
Thinking about that individually, and I think you'll find it.

Speaker 2 (19:48):
Absolutely.

Speaker 1 (19:49):
We've got more Maney talks in just a moment. Welcome
back to many talks with Welcome back to money talks
with Terry Samboled and Blake Sambled and Terry. We've been
doing a market update today and kind of looking back
at some of the indicators which have been a little
less clear and straightforward.

Speaker 2 (20:10):
They have been a little look a little bit closer
at everything. And a couple of the things that are
that we're watching real closely is the Supreme Court teriff
ruling and what we mean by that. There's been a
lot of terriff agreements throughout the world lined up with
the United States, and that's a good thing. We feel
a lot of those got bounced out a little bit
more than they were in the past, but now it's

(20:34):
being challenged a little bit or they're looking at that.
Are they looking at the authority of being able to
do that and will they try to unravel that. If
they try to unravel that type of state the terff agreements,
that will be difficult on the US side, as well
as other countries side, because they're building their economy based

(20:56):
on those agreements, so to unravel them could be a
bit of a them I guess you'd say, a big
uncertainty in the marketplace, at least for the short term.

Speaker 4 (21:05):
When you agree, like, yeah, well, I think one, you know,
it's definitely would be complex to do so. And I
mean there's hundreds of billions of dollars that have been
taken in so to figure out how that should get
distributed back and who should get that I think would
have its own set of complexities if they were completely deemed.

Speaker 2 (21:25):
That they should get.

Speaker 3 (21:27):
So I'll come out, yeah, I would agree with that.

Speaker 4 (21:34):
You know, I hope that's not the ruling. You know,
so I think, you know, maybe there will be a
question of, you know, is there something in the middle,
and you know, idea that we've been talking a little
bit about, is you know, maybe is there could there
be a case or where they say Trump can't make that,
but agreements that have been made by the Treasury are valid,

(21:56):
valid agreements. I don't know, you know, maybe there's a
scenario like that where it's kind of like, well, don't
do it again that way.

Speaker 3 (22:03):
You know, I don't know.

Speaker 2 (22:05):
Yeah, So that's one of those things that's really looking
at the rulings. I mean, the outcome of this is
the goal is to make a more fair and equal
balance of trade out there, and if the US competes
against other countries, in almost all cases we should win.
I mean, we just have a stronger country or more

(22:26):
diversified and well equipped for all the different parts of
the market. You know, some of the things in the past,
other countries were taking advantage of us. They had a
high terriff on us, for example, on automobiles. I think
it was India that almost had a was it almost
like a ninety percent teriff on our automobiles at one time,
so the cost of our automobiles in India was almost

(22:48):
twice as high and kind of pushing us out of
the market there on purpose. So trying to get more
of a fair and equal balance. I think we can
compete with any country worldwide, for sure. So I think
that was the simple goal of what Trump was trying
to accomplish on all this, and going forward he still
has that outlook, I think, and that's that's the goal

(23:10):
going forward. I think he was he was going at
at a pretty fast speed and getting a lot of
things accomplished. Politics doesn't work fast for some reason. I
don't know if you've noticed that or not, but I
think that was one of his big challenges when he
got into politics, was come on, guys, let's keep moving here,
you know, that type of thing. And I think he

(23:31):
still probably has that attitude, which is fine, but I
guess they're trying to look at who who can control,
and who can approve, and who can do this and that.
And I think he was getting I think he was
getting ahead of the crowd on this and they were
trying to reel him back in a little bit.

Speaker 3 (23:50):
Yeah, well, I think that is part.

Speaker 4 (23:51):
And you know, I do think as you look at
the kind of tariff you know a little bit in
Limba right now, you think about from a business standpoint,
Ain't that's a tricky spot to be. You know, if
this can take a couple of months to resolve, companies
are incentivized from the one big beautiful bill to do spending.
Now you know R and D expenses can be expensed immediately,

(24:13):
so that's a big tailwind. But you know, part of
their pricing metric on that is essentially the offset with
tariffs and saying, you know, tarifs being imposed does make
it a little bit more favorable here. So if that's
a little bit in question, you know, that'll be a
key part that we watch. Does do companies delay spending
right now with that in mind, which which could lead

(24:36):
to you know, slower economic growth and slower business growth
in the near term. So that's that's the risk, that's
the that's the concern that's out there. You know, some
of market commentators have talked about a reversal on that
and being like, well, that'd be great. You'd see the
market up a lot on that. I don't I don't
know about that, you know, I I think I think

(24:58):
that could be a difficult environ for the market to
digest that, and I think, you know, probably you see
longer term interest rates move higher, which could slow things
further because you think about it, I mean, that'd be
greater uncertainty about deficit spending, and because because tariffs are
kind of needed as an offset for the most recent bill.

(25:19):
So I think, yeah, I think that'd be that'd be
a choppy environment. So, you know, I think we'll we're
going to be very closely watching that, and you know,
thinking about portfolios with that in mind.

Speaker 2 (25:31):
Yeah. Another thing is besides that is watching the interest
rates closely and what's taking place there, because probably a
month or two ago, it was almost ninety nine, there
was going to be a rake cut in December, right, yeah, yeah,
betting nods, we were right there.

Speaker 3 (25:48):
I mean, it was pretty much lock in. And you know,
at the the last.

Speaker 4 (25:54):
FMC meeting they came out and kind of kabashed that
and said.

Speaker 3 (25:57):
Well, it's not a done deal.

Speaker 4 (25:58):
And you know, additional rhetoric has kind of come out
since saying well, we don't really have economic data, which
I think is just kind of everyone starting point fingers
at each other a little bit right now.

Speaker 1 (26:10):
And the term that Powell used was well, there's a chorus,
a rising chorus of descent. And I'm you know, I
thought that was interesting.

Speaker 2 (26:18):
It seems like he's always coming up with a undecisive
comment no matter which topic it is, and it's like
he wants to play the middle of the road back
and forth. He doesn't want to come out and just
hardline an answer for anybody. People want answers and they
want to know the direction, and if you don't, uncertainty

(26:40):
is not good. For the market, and he's he's a
pretty good proponent of uncertainty once you say, when he's
out in front of the microphone.

Speaker 3 (26:47):
Yeah, yeah, I mean it has been.

Speaker 4 (26:50):
And you know, I think there's a large part of
saying that we need to be data dependents.

Speaker 3 (26:54):
But.

Speaker 4 (26:56):
Be clear about the data that we're looking at. I
guess as part of it as well. And you know,
a lot of the I mean job and inflation data
that we look at and watch here is coming down.
I mean the labor markets. You know, you saw a
nice little balance this week with September's numbers, which which
came in better than expected, but it was not robust hiring.

(27:17):
You know, you know it's over one hundred thousand, but
it wasn't a huge number. Inflation data, you know, we're
kind of in a little bit of a void with
CPI type stuff. True inflation is still under two and
a half percent. It's come up a little bit, but
is muted. The other big one that we watch is
the ISM purchasing manager's Prices paid index. So how's this

(27:40):
for a new one, Kelly? And what we saw during
the summer months. This is essentially like asking companies are
you seeing pricing pressures increase, yes or no or neutral,
so they kind of have to give give a reading
on that. So it's one of those again we're like
fifty is a neutral rate, okay, And it had come
up to about seventy in June July timeframe, so meaning

(28:04):
that a lot of companies were seeing pricing pressures increase.
That's been consistently ticking down. Now it's at about fifty eight,
So there's there's less and less companies saying now that
we're seeing pricing pressures that usually has like a two
monthly time in the PPI, which has a two monthly
time into CPI.

Speaker 3 (28:23):
So long way of saying, some of.

Speaker 4 (28:25):
Those pricing pressures seem to be abaiting right now, and
you know, in our minds that should give further relief
to the FED to be in a cutting environment.

Speaker 1 (28:35):
Okay, real quick question for you before we have to
take our last break here. So you talked about how
we will not get October jobs numbers now because they
weren't collecting the data so they wouldn't be accurate. Are
we going to see giant holes in those other indices
as well, like CPI and PPI and all that other
kind of stuff because they probably weren't collecting either.

Speaker 3 (28:53):
There probably are a number that.

Speaker 4 (28:54):
Are going to see voids and you know, I think
we'll get more data on that over the next couple
of weeks for where there will be gaps out.

Speaker 1 (29:00):
There, okay, and then when there's a gap, do people
just want to speculate to see what they could put
in there.

Speaker 3 (29:07):
We'll talk about it for years. You know what the
data was eighty nine yep. Okay.

Speaker 1 (29:16):
We've got more money Talks coming up in just a moment.
It's Money Talks with Terry Sandbold and Blake Sandvold, and
we're doing a market update today Terry, and it's kind

(29:37):
of fun. We're letting you know how much information we
don't have, letting you.

Speaker 2 (29:42):
Know how No, well, there's a lot of things. Yes,
it's not us personally, it's you know, from that standpoint,
it's really getting the economic reports because of you know,
the shutdown is part of the issue there, but making
sure that the information is accurate and we're not making

(30:03):
up our own numbers so to speak, out there, or
the politicians are not coming up with data that's not accurate.
So the one thing that before we jump into the
sectors of the market that we're watching. The thing that
we can't reinforce enough is when you're hearing a show
like this and you're hearing all the different types of
direction and things to talk about and what could affect

(30:24):
the market, are you really working with somebody to help
you with this or are you trying to take this
on all by yourself. I think a lot of people
try to take it on by themselves first, and then
if they don't feel their succeeding, then they call people
like us. Don't wait, because we can help provide the information,
the guidance, and the recommendations to go through the ups
and downs of the market. And at this point, some

(30:45):
of the sector wrote we call it sector rotation, simple phrase.
But parts of the market that are doing well this
year may not be the leaders for next year. So
are you prepared? Are you looking forward? Are you just
looking backward at what to do next with your financial future.
So we've had very good successes with their clients this
year as far as performance and their portfolios, and we

(31:07):
want to make sure that you're on top of your
financial game. So if you're looking for guidance and you're
looking for that second opinion or getting started or getting
ready to hear for retirement or are in retirement, give
us a call for a no cost review. And again
our number at Sandvilled Financial Group, we've been doing this
for thirty nine years. Our number is nine five two

(31:29):
five four four two eight three seven. Again nine five
two five four four two eight three seven. When you're
getting close to the end of the year, it's a
good time to relook at how did you do this year,
what are you going to do for next year, and
be prepared for the next few years along the way.
But Blake, we talk about sector rotation just as a

(31:50):
common phrase for us, and we talk about it all
the time, but maybe to go into that a little
bit and then talk about some of the key sectors
that we're watching right now.

Speaker 4 (31:59):
Yeah, So the key thesis with it really is that
you know, there there's a benefit to following the business
and economics cycle, and that's what we try to do.
There's different sectors that should lead mean drive performance for
the broad markets when the economy is at different states,
and you know, different things that we can look at
for that. You know, it can be interest rate policy, inflation,

(32:22):
you know, is our businesses spending, what are commodities doing,
et cetera. I mean, how how is employment looking. There's
a lot of different factors like that that are really
important to look at for saying where where should things
drive forward from here? You know, as we look at
the current cycle that we're in, there there is a
massive AI capital expenditure going on right now. I mean,

(32:45):
companies are needing to get positioned for that. So you know,
that's why we think it is still vital to look
at the technology sector. You know, there's areas there that
are really important to look at, you know, and it
can be from AI. But it's not just the chip
companies anymore. You know, it's looking at what companies are
helping implement AI systems and what companies themselves are implementing

(33:09):
systems in their own practice. You know, as an example,
JP Morgan had to come out and said for two
billion dollars that they spend on AI, they get two
billion dollars.

Speaker 3 (33:18):
In cost savings.

Speaker 4 (33:20):
So you know, you kind of look and say, companies
that are understanding that, you know, could have margin expansion
going forward. So it's starting to look now, I think
at the next derivative of that, and I think.

Speaker 3 (33:31):
That's gonna be key.

Speaker 4 (33:32):
But also in the technology space, cybersecurity, I mean that's
a massive multi year risk that's going to be out there,
and you know, AI quantum computing are going to make
that even more complex and how to protect identity. So
you know, I think finding leaders in that space makes
a lot of sense. The industrial space that in our

(33:53):
mind is is probably one of the most interesting spots,
you know, over the next one to two years. And
you think about one big full bill an idea for
tariffs that's really on shoring, reshoring near shoring to US.
So there should be a lot of capital expenditures coming
through on that. So the industrial companies, you know, a

(34:13):
lot of them are you know, boots on the ground,
they're shovels, and you know, building that out heavy equipment
can can look pretty interesting. Right now, you know what's
helping build out the data centers, so kind of some
of those ancillary type projects and companies in that space
look really interesting in US and you know, I think

(34:34):
are worth looking at. Another area that has kind of
flown under the radar, you know for the last four
years or so is the biotech space in the healthcare sector,
and they were really hit hard with high interest rates.
And you know, you think about some of these companies
if they're trying to make a drug or a keere

(34:56):
or something like that, and you know interest rates they
have to finance north a ten percent versus five that
you know, that's going to hurt their margin, you know,
where they're not profitable. So as interest rates are coming down,
that should be a tail when they're AI again. Should
help the innovation process. The FDA regulatory process seems like

(35:17):
it's more or less burdensome right now, easier to work through.
But there's also a massive patent cliff out there for
large pharma companies, meaning that you know, past drugs that
they've had are reaching the end of their patent life.
So they're going to need to start looking at being
more competitive in new innovation areas to find that next drug,

(35:39):
next cure. So there could be a lot of consolidation
happening in the biotech space. So I think that's that's
an area that we're increasingly focused on right now for
a unique opportunity set.

Speaker 2 (35:51):
Yeah, even in the sectors, there's many sections of the sectors.

Speaker 3 (35:55):
Yeah, there's something within those two.

Speaker 2 (35:57):
So, like you bet, because biotech might come it's a
subdivision of healthcare, but not all healthcare is doing real well.
So I mean it's really looking at that's where when
we have tens of thousands of pieces to look at
or more, you know, it's looking at what parts of
this what sectors and now what's subset of the sector.

(36:17):
So that's our job is to help look for those
specifics and those opportunities, because, yeah, the biotech side is
doing much better than other parts of the healthcare industry. Yeah, absolutely,
just use an example there, and as well as in technology,
like Blake was saying, it's not everything across the board
is doing well because there's old technology also that maybe

(36:38):
just going slowly but steady and slow. But what's going
to be the next new thing out there? And watching
as far as that opportunity is. Defense and aerospace also
is another area I think that is ever changing too.
And Europe being countries have a to put five percent

(37:01):
of their budget towards defense and that type of thing.
And I sometimes tease and say, well, they don't have
all the bowling jets, they don't have all of the equipment,
they don't have the fighter jets, so we might be
supplying some of those countries as well as increasing our
own need. So I mean there's sometimes is looking at
certain areas like that as well, so many different things.

(37:21):
We're not going to be making pennies anymore. Yeah, it
cost three cents to make a penny. That's not a
good thing, you know. But I mean you hear the
phrase rare earths, right, Blake, Yeah, Yeah, I.

Speaker 4 (37:33):
Mean that that's been a theme that we've been looking
at and talking about for years. And you know, there's
it's getting very interesting in that space right now. For
you know, what are rare earth companies in the US,
and there are a handful out there, just a couple,
but you know, I think you know, it's kind of
comes down to controlling your own destiny, right and I

(37:55):
think that is what Trump has been focused on with
this as saying that we can control that. You know,
we need to understand supply chains and have more options
and alternatives on that. You know, there's a deal this
week with Saudi Arabia on rare with minerals, and you know,
I think things like that are going to be really

(38:16):
important to watch over the next couple of years.

Speaker 3 (38:19):
Where we sourced from those.

Speaker 1 (38:22):
In the back and everything I was working yesterday and
he was quite on yesterday or on Thursday when I
was listening to it. Just he gets up there and
just goes. I don't even think there was a teleprompter.

Speaker 3 (38:34):
It was crazy. But all the deals that they were
announcing are kind of amazing. Yeah, there are a lot
of big ones. I mean, you know, you think about
a trillion dollars in capital expenditures coming here and that's
that for me, that's massive. Money sounds really great.

Speaker 1 (38:50):
But what's going to happen about money? You know? It
sounds really great?

Speaker 4 (38:55):
Yeah, well yeah, I mean you know, it could be
coming to plants, different things like that invested in the US.
You know, I think a different way of looking at it.
You know, when we talk about ten trillion or so,
I think the list that he's compiled is even higher
than that. You know, the US economy it is, you know,

(39:19):
thirty five trillion or so in annual GDP. So you
think about that, if there's an excess amount you know,
of five to twelve trillion dollars in excess capacity coming
in for spending, you know, over a multi year process,
that's a lot of money. You know that that's a
lot of growth and spending that can come in. It
can be heavy equipment, it can be technology, it can

(39:42):
be research and developments, it can be plants. I mean,
the list really goes goes on and on, you know
what it could be compiled with. But I mean that
you know, likely does translate to wage growth. You know,
if it's tech spend, that's probably productivity growth. You know,
productivity growth is really what you want. I mean, that's
that's the largest goal. I mean, that's what technology should

(40:04):
do is make the output per person increase, and that
essentially means deflation. You know, that's what productivity growth is.
It's disinflation or deflationary over time. So you know, it
makes sense to have some of that investment coming in.
We'll just need to watch our next.

Speaker 1 (40:23):
Year, two years, three years financial newsletter.

Speaker 2 (40:29):
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