Dow notches record. S&P 500 rallies to end best September since 2010!

Jonathan Hoenig of CapitalistPig.com has a national look at business news including Publisher's Clearing house's bankruptcy means no more money for winners!

Episode Transcript

Speaker 1 (00:00):
All right over to the Legacy Retirement Group dot com

(00:02):
phone line. It's Thursday. That means it's Capitalist Pig Day.
Our guy is Jonathan Jone, a Capitalist Pig dot com. Jonathan.
Good morning boy. It was a good September for the
S and P. Five hundred a.

Speaker 2 (00:13):
Hell on a September MIC, and we're looking at new
all time highs this morning once again for the S
and P for the NATAC. Great to be with you. Yeah,
I mean the S and P had its best September
since twenty ten, and a lot of it now is
the thought of perhaps more interest rate cuts this year.
Now we've got to show the shutdown going, Mike, the

(00:33):
US government shutdown, and you think that perhaps the market
would be effected by it, seemilarly not at all. And
it kind of goes to the point that when we
talk about what power is the economy forward, it is
not Washington, it is Wall Street. It is these magnificent
large cap companies that have been hitting new all time
highs seemingly for months. Interestingly, the prediction markets they're actually

(00:54):
are making best them. How long the shutdown lasts estimated
in about two weeks, but for now not impacting the
stock market at all do all time high for the Dow.
We'll see it this morning.

Speaker 3 (01:05):
That's incredible that.

Speaker 1 (01:06):
I mean, you can bet on anything now in these
prediction markets, and they're very accurate, and they predict elections.
You're not just betting on sports anymore. I mean these
prediction markets. So if they're saying two weeks, boy, I
would not want to bet against that.

Speaker 2 (01:19):
In One of the things that they're betting on are
those indust rate cuts, Mike, And the reason is actually
not so good, and part of it is payrolls. You know, Interestingly,
we're unlikely to get the monthly jobs report. You know,
every month we get that monthly jobs report, but given
the shut given the shutdown, the Bureau of Labor Statistics
is probably not going to publish it this Friday. So

(01:40):
we do have this ADP report that came out not
that good. Private sector businesses, according to ADP, lost thirty
two thousand jobs in September August previously estimated fifty four
thousand jobs was actually downworthly revised, so it was negative
as well. So that's the big issue.

Speaker 1 (02:00):
Now, Mike.

Speaker 2 (02:00):
The lower jobs numbers might mean lower inflation, lower interest
rates as well.

Speaker 1 (02:05):
Jonathan Hoode Capitalist pig dot Com publishers clearing house they are,
I think went bankrupt and they basically told anybody who
had won the sweepstakes that they're not going to get there.
Whatever it was like, you know, five thousand dollars a month,
you know, for the rest of your life. They told folks, sorry,
you're out of luck.

Speaker 2 (02:25):
I mean, can you believe it? Mike? Growing up, I
think you know around the time that you and I
did that was like your ultimate wish come through in life. Right,
suppose you know your dream came true the publisher's clearing house,
the team showed up at your dorm with those payments
for life. Well, you're absolutely right. The company went bankrupt,
So all those pasts of future winners they're not getting paid.

(02:48):
But their new CEO as a company arb RB Interactive,
they're saying that they're going to be a legitimate mobile,
digital first entertainment platform and that all future winners will
be prepaid of I don't know, Mike. For me, if
they give you the annuity of the lump sum, you
take the slump sum, take the loss sell They always
and especially given the way that prices are going. Now,

(03:09):
did you see this story about beef prices, or maybe
you're just feeling it at the FDA at the store
of these days.

Speaker 3 (03:14):
Yeah, I did. We've talked about that a couple of times.

Speaker 1 (03:17):
In fact, a couple of weeks ago, we talked to
some of the folks from the Ohio beef producers and
it's it's an interesting story because it seems it's a
supply and demand problem on both sides.

Speaker 2 (03:27):
Yeah, the cattle inventory lowest level in seventy years. The
story over at FoxBusiness dot com. So we've got these
pretty substantial beef increases for everything from steak to ground beef.
Round beef is up about thirteen percent year over year.
Beef roasts are up almost fourteen percent, steak up seventeen percent.

(03:48):
So that's a lot bigger than just the average for food,
which is up about three point two percent. And you're right,
Mike gets demand, but it's also supply. Not a lot
of cattle on these herds, these lends, so so that
means higher prices, and that's why you're paying seemingly so
much for beef at the supermarket today.

Speaker 3 (04:08):
Beef is right hot recently.

Speaker 1 (04:10):
I mean, it's the health benefits, it's a nutrient dense food,
and you know, people are always looking for that next
shot of protein these days. So despite the high prices,
people still getting after that steak and the ground beef
and no, no, I'm kind of ready for a stake myself.

Speaker 3 (04:26):
New car down payments hit a four year low.

Speaker 1 (04:29):
What's the We know that the affordability of new vehicles
is getting kind of out of reach for a lot
of folks.

Speaker 3 (04:35):
What's the average down payment for new cars today?

Speaker 2 (04:37):
It's going down. I mean, people are putting more of it,
more of it on, They're charging more and more of it.
They're putting more, more of it on. A note, the
average down payment MIC for a new car payment six dollars,
and that's the lowest since the fourth quarter of twenty
twenty one. Fox Business had this story as well with anything.
Is that the share of car buyers who have a

(05:00):
monthly payment over one thousand dollars. That's almost twenty percent
of all new car purchases are paying over one thousand
dollars a month. And again, it seems like only a
couple of years ago, Mike, that might have been for
an ultra luxury car. But now we're talking about the
average so we've got plenty of people paying more than
one thousand dollars a month, and exactly as you said

(05:20):
that new car affordability is still way out of the
reach of many many Americans new cars, new cars costing
forty five fifty fifty five thousand dollars. Don't tell me
again an inflation is down where we're seeing so many
prices stay persistently high.

Speaker 1 (05:36):
That's crazy. One thousand dollars a month for a car payment.
It's I can remember. I think we're probably rolily the
same age, Jonathan. Is one of my first cars that
I bought myself, brand new, not a used junker. It
was a Ford Escort. It was like two hundred bucks
a month. Two hundred bucks a month for a that
for a for a brand new car.

Speaker 2 (05:54):
Yeah, and Mike, that thousand a month. That's not even
just for new cars, even for used cars. Monthly payments
of one thousand dollars or more. Is that a record
high of six point one percent thousand dollars a month
for a used car. But you know, I hate to say,
we've said it for months now. My thousand dollars.

Speaker 3 (06:12):
Eight what do you use?

Speaker 1 (06:13):
You ain't got that right, brother, by the way back
to Publisher's clearing House for a second, I would have
sworn that Ed McMahon was a spokesperson for that and
showing up at your front door with the big old
check saying you won that. Ed McMahon never worked for
Publishers clearing House. He worked for American Family Publishers. That's
a false memory that I had.

Speaker 2 (06:32):
That's that's fascinating. I probably would have associated there's two
brands as well.

Speaker 3 (06:36):
But yeah, going back, Oh wait.

Speaker 2 (06:38):
I think the one one thing we learned though, Mike,
is that you know the knowing that you won your
payments for life, and that the company went bankrupt and
all of a sudden those payments are gone. If someone
gives you the lump sum, you take the lump sum away,
man or no, that's great.