March 19, 2025 • 38 mins
Chuck Zodda and Paul Lane discuss the current state of US markets and how they are compare to markets outside the US. Retail investors ditch buy-the-dip mentality during market correction. Meta becomes the final Magnificent 7 stock to turn negative. Nvidia CEO says AI computing needs to surge 100-fold. Taco Bell parent Yum Brands partners with Nvidia to speed up its use of AI. China's BYD cemented its lead on Tesla in five minutes.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
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(00:20):
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(00:42):
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(01:02):
This is the Financial Exchange with Chuck Zada and Paul Lane.
Speaker 2 (01:08):
Out two on the Financial Exchange, Chuck Paul Tucker with you,
and we got markets having.
Speaker 3 (01:13):
A cautious rally today.
Speaker 2 (01:15):
Thus far, the Dow is up two hundred and thirty
four points, about half a percent, The s and P
up thirty one points, also about half a percent. In
the NASDAK it's about one hundred and thirty points, about
three quarters of percent. So nice little relief rally day.
But remember these indices were all down more than this yesterday,
the SMP down about double can't remember on the Nasdaq
(01:37):
or Dow exactly how much they fell, but.
Speaker 3 (01:39):
It was worse.
Speaker 2 (01:41):
The tenure US Treasury not really moving much before the
Fed meeting this afternoon. US Tenure Treasury at four point
three zero two percent. That's up two point one basis points.
Right now, the national fixed rate mortgage for thirty years,
according to Mortgage News Daily, still sits at six point
seven eight percent, So we've been just hanging around that
(02:03):
six and three quarters range for the last couple of
weeks now, after being up in the low sevens earlier
this year.
Speaker 3 (02:10):
Other things that.
Speaker 2 (02:11):
Are moving West Texas Intermediate for oil is it sixty
seven zero four fourteen cents a barrel, triplea national averagur
gas prices up now, gie, big jump.
Speaker 3 (02:20):
Actually this is actually I saw this.
Speaker 2 (02:22):
There are some refinery switches that are going on right now,
and so gas prices up two point four cents a
gallon over night to three ten and two tenths of ascent.
New England actually still kind of ahead of the curve
on this, but the expectations are that New England's going
to start seeing some upward pricing pressure in the next
(02:42):
figure several weeks. This just due to the switchover from
the winter blends of gasoline to the summer blends. Finally,
we've got gold today down four dollars and thirty cents
announced to three thousand and thirty six dollars and fifty cents,
and so overall, nothing moving too much in advance of
well the FED meeting this afternoon.
Speaker 3 (03:05):
Let's talk a little bit.
Speaker 2 (03:06):
About one of the big trends that we've seen in
equity markets so far this year, and specifically what that
is is that, well, the best way to put it
is that international markets are doing a lot better than
US markets generally. So here's what we've seen, and this
is through the close yesterday that I have here, and
(03:29):
I'm just going to quote level changes, not total return,
because I'm not factoring in dividends, because they can be
taxed all kinds of differently depending on where you are
in the world. The S and P five hundred year
to date as of yesterday was down four point five
to four percent. The MSCI Emerging Markets Index is up
six point four to eight percent, the MSCI EFA Index
(03:52):
Europe Asia Far East up eleven point zero six percent,
MSCI Japan up four point four seven MSCI Europe of
fifteen point three. Basically, where I'm going on this is
that unlike the last fifteen years or so, where US
markets and specifically the S and P five hundred have
just absolutely dominated their overseas counterparts, the opposite is absolutely
(04:15):
happening this year, and it is something that I think
has caught a lot of investors kind of off guard
because they weren't prepared for it. And so what you
are seeing here is kind of a reassessment of where
capital needs to flow, not just based on what's going
on in markets here, but also talking about, hey, what
(04:36):
fiscal plans are we seeing from Germany and potentially the
rest of the EU, How is trade going to be impacted,
hows that can impact how capital flows back and forth.
There's a lot going on here and it's something where
I know that again, no one knows where any of
this is going to go. But remember we've had basically
(04:57):
almost fifteen years of US outperformance compared to international It
would be surprising to me if all of a sudden
we sit here and we're like, well, that corrected itself
in three months. I guess we can call it a
day and go back to the SMP trouncing it. That
may very well happen, but I think that we have
to see how this plays out because there's a lot
that potentially is changing when it comes to global trade,
(05:19):
capital flows, and things like that over the course of
this year and into the future.
Speaker 4 (05:23):
It's a really interesting idea to cover.
Speaker 5 (05:24):
Like you mentioned, the S and P five hundred has
just crushed international markets for the longest time here, and
you've had a couple of different factors that have led
to the resurgence of whether it be the European markets
or the Asian markets.
Speaker 4 (05:38):
You know, part of that was the.
Speaker 2 (05:39):
UH can I just give some scale, like as to
the magnitude of what we've seen on this. So let's
go back to the start of the twenty tens. So
let's go back to one one twenty ten. Just as
an example, the S and P five hundred during that
time is up four hundred and five point eight percent.
The MSCI Emerging Markets Index is up fifteen point seventy four.
(06:04):
The MSCI EFA is up fifty eight point nine to one,
the MSCI Japan's up eighty six point five two, MSCI
Europe is up sixty point one four. So just to
give you a sense of the scale here, we're not
talking like the US. You know, the S and P
outperformed these other indices by twenty thirty or forty percent
over that time. I mean, in the case of emerging markets,
(06:28):
emerging markets returned like one percent a year. Again, this
is a level change. It's not factoring in dividends, so
you know, take that for what it's worth. But in
terms of you know, stock like capital appreciation, MSCI Emerging
Market indext basically returned one percent a year for the
last fifteen years, and the S and P five hundred
returned fifteen sixteen percent over that time. So, like it's
(06:50):
just huge scale that we're talking about in terms of
how things have gone.
Speaker 5 (06:54):
And part of the correction is valuations returning back. We've
talked about before that whether you're looking at four pe
price of sales, any type of valuation metric for the
s and P five hundred, we were at levels that
we haven't seen since the late nineties. So some of
this selloff could be due to just that there was
a significant amount of market euphoria really after November and
(07:14):
the end of twenty twenty four. And then you've also
had some geopolitical events occur. Obviously the tariffs, which we've
spoken about quite a bit, but other countries taking different
policy stances. Germany we talked about a little bit on
yesterday's show, the expansion of their fiscal policy, a country
that had typically been very conservative from a debt standpoint,
staying that they're going to be a little bit more
(07:36):
comminative and raising more debt. You've also had interactions between
Brazil and China to kind of increased trade activity between
those two countries, and just sort of global economic policy
outside of the US loosing it up a little bit
compared to a US policy that has been tightening over
the course of the last couple of years or so.
And then you also have had some events out of China,
(07:58):
the Deep Seek event that occurred in late January, and
then Bid yesterday coming out with allegedly a electric vehicle
batty that could charge in five minutes, causing a lot
of these shakeups that we've seen here.
Speaker 4 (08:09):
So it's been interesting to follow.
Speaker 2 (08:11):
It has, and again I don't think any of us
know exactly how this is going to play out in
the long run. Like if if you had pulled investors
back at the start of twenty ten and just ask them, hey,
over the next fifteen years, what do you think the
average rate of return for US and international stocks is
(08:33):
going to be over that time, and you like put
it into like your traditional like three big buckets like US, International, Developed,
and emerging markets. Here's what most people probably would have
come back with then. And this is just from again
how like what you see with like big institutional investment consultants.
They would have said, okay, US stocks are going to
(08:53):
return nine percent a year, International stocks, you know, developed
are going to return eight and a half percent a year,
Emerging markets are going to return ten percent a year,
and they would.
Speaker 3 (09:04):
Have called it a day.
Speaker 2 (09:05):
And it's not to say that like all institutional investment
consultants are dumb and they should have seen it coming.
It's more like you don't know how small changes potentially
evolve into you know, big investment differences over a fifteen
year period, and so you know, to look at this
right now and try to have any you know, predictive
(09:29):
value as to well, this is what we're seeing like
the first few months of this year, and this is
what it means like for the long term. We have
no idea, but what I can tell you is that
if you look at the period before what I just referenced,
so I was talking about twenty ten through twenty twenty four,
Let's now go look at the fifteen year period before.
(09:49):
And I don't know what I'm gonna find. By the way, here,
so like that we're we're gonna do this live. Here's
what we see. If we go from one to one
of ninety five through twelve thirty one of two thousand
and nine, here are the returns for the same indices
that I just gave you. The S and P five
hundred during that time returned to one hundred and forty
two point eight percent the MSCI Emerging Markets Index was
(10:13):
one hundred point nine, the MSCI EFA was fifty two
thirty one, MSCI Japan was thirty four twenty three, and
MSCI Europe was one thirty three point seven in terms
of percentage. So overall, US stocks still you know, carried
the day for that fifteen year period, but by a
much smaller amount compared to Europe and EM and especially
(10:37):
I mean again, EM was the second best performing you know, category,
second best performing index here, whereas it was the worst
in the other one. Just because something does well even
for fifteen years, doesn't mean anything about where it's gonna
go the next fifteen So I don't know what any
of what we're seeing, like if if what we're seeing
today means anything. Because we're going through a period where
(11:01):
there are some potentially pretty dramatic shakeups of world trade
and capital flows on the horizon. We've never lived through this,
We've never lived through potentially something of this scale moving
this quickly through the world financial system, in the world
trade system. Anyone who says like they know how this
(11:22):
is gonna play out, I think is lying to themselves.
Speaker 3 (11:24):
I don't know. I don't know who it's gonna be
good for.
Speaker 2 (11:27):
I don't know who it's gonna be bad for, you know, like,
I have no clue we're talking about. We're talking about
things that have not been in mainstream consciousness for eighty years.
Speaker 5 (11:39):
Yeah, I'm just not willing to print this whole story
that because of the teriff situation. It's just so tenuous.
It's it's hard to make sweeping projection. I mean it's
hard always, but even more challenging when the crux of
the concerns with the US market are tied to tariffs,
which are so.
Speaker 4 (11:58):
Constantly evolving.
Speaker 2 (11:59):
What it's a if the average US teriff rate at
the end of this year is twenty five percent, No,
would it surprise you if the average US tariff right
at the end of this year is zero?
Speaker 4 (12:07):
No, that's no.
Speaker 2 (12:08):
They have no idea like this could all end up
being resolved in a bunch of negotiation in there and
no tariffs that are.
Speaker 5 (12:15):
Imposed by the end of this year. Exactly exactly. That's
where I come at. It is just open on each
side to either either outcome.
Speaker 3 (12:23):
Let's take a quick break here.
Speaker 2 (12:24):
When we come back, we'll do a little bit of trivia,
and then we'll talk about what retail investors have been
doing recently.
Speaker 3 (12:29):
Right after this, there's only one show that follows well.
Speaker 1 (12:34):
Street's continued volatility. Keep it here all morning long on
the Financial Exchange Radio Network. The Financial Exchange streams live
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on breaking business news all morning long. Face is the
Financial Exchange Radio Network.
Speaker 6 (12:53):
Let's do a little bit of trivia here on the
Financial Exchange and believe it or not, today is Bruce
Willis is setnath birthday. Before retiring from acting, Willis was
one of Hollywood's most bankable stars. Movies with Willis as
the lead actor have generated over five billion dollars at
the box office. Tribute question today, what is the highest
(13:16):
grossing film of Bruce Willis's career? Once again, what is
the highest grossing film of Bruce Willis's career?
Speaker 3 (13:25):
Be the sixth.
Speaker 6 (13:26):
Person today to text us at six one seven three
six two thirteen eighty five with the correct answer, and
he went a brand new Financial Exchange Show t shirt.
Speaker 4 (13:35):
Once again, the.
Speaker 6 (13:36):
Sixth correct response to text us at six one seven
three six two thirteen eighty five will be our winner.
See complete contest rules at Financial Exchange Show Dot.
Speaker 2 (13:46):
Com peace in CNBC, retail investors ditched by the mentality
during market correction. I'll quote here, retail outflows from US
equities roase to about four billion dollars over the past
two weeks as tariff tariff chaos and mounting economic concerns
caused a three week pull back in the S and
P five hundred. Discording to data from Barkley's I don't
(14:07):
really know what to make of this because I've seen
some conflicting reports about how like money move. Like I
don't know what you can actually believe as far as
like retail's doing this or retail's doing that, because I've
seen data that is again just kind of all different
on this.
Speaker 3 (14:25):
I also don't know why, I know why you would.
Speaker 2 (14:30):
In theory try to, you know, figure out like what
retail is or isn't doing, because historically, you know, aside
from a very brief period in twenty twenty one, retail
generally is kind of referred to as the dumb money.
It's not my term, it's just, you know, how it's
referred to in the biz. That also implies the existence
of smart money, which, as we've discussed, doesn't really exist either.
(14:52):
Everyone's like, oh, the smart money is the bond so well, yeah,
why do all bond traders get smoked the last few years,
you know, in terms of how things were moving, and well,
the bond market knows what's going on.
Speaker 3 (15:00):
I know it doesn't.
Speaker 2 (15:00):
It didn't think that rates were going up as much
as they were back in twenty twenty two.
Speaker 3 (15:05):
So I never quite know what to do with pieces
like this.
Speaker 2 (15:09):
I generally try just to not read them, but I
appreciate Tucker putting it in our stacks so that we
can talk about it, because again, people seem to be like, oh,
like retail traders, weren't. I just I don't know what
to do with something like this.
Speaker 5 (15:23):
The retail flows hard to track, but what we can
likely agree on is that the speculative sort of flavor
of the market has subsided quite a bit year to date.
It doesn't seem like there's the same market for that
there was, you know, over the course of the last
couple months in late last year.
Speaker 2 (15:43):
Seems like it, Yeah, seems like it. I find something
much more interesting here in this piece. Meta becomes Final
Magnificent seven stock to turn negative in twenty twenty five.
So here's what you're seeing year to date for mags
in companies. Microsoft off about eight percent, in Vidio down
about twelve, Apple down about thirteen, Amazon down eleven, Tesla
(16:07):
down forty two, Google down thirteen, and Meta down down
about half a percent. But obviously met has been holding
up better than the other one's. Apple wasn'tntil recently, and
then Apple kind of puked all over itself for the
last you know, week and a half or so. But
the interesting thing right now is that for the first
time since November of twenty two, this is the first
(16:28):
time that all seven of the mag seven names are
underperforming the S and P five hundred for the last
three months.
Speaker 4 (16:34):
Wow.
Speaker 5 (16:34):
I mean, they have just carried the performance so much
over the course of the last couple of years that
it probably was about time, right, Like, you can't continue forever.
Speaker 2 (16:45):
We're not going to become the United States of Microsoft.
We'd have to change the initials first and foremost, it's
more likely to be the United States of Apple.
Speaker 5 (16:51):
I mean, we talked about the waitings that they've had
in the S and P five hundred. I know that
was up in and around thirty plus percent or so.
I'm not sure if some of Tesla's sell off and
some of these other ones. You know what it looks
like today. Obviously, I'm sure it's down slightly, probably not
a tremendous amount, but the waiting was just so significant,
and the amount of performance that they've added to the
S and P five hundred of the last couple of
years is massive, So it probably was time at some point.
(17:14):
But it doesn't look like there's any real near term
catalyst for any of those seven names for the time being,
but we'll see.
Speaker 2 (17:24):
Sticking with MAG seven. In videos, CEO Jensen Huang said
that AI computing needs need to scale up by a hundredfold.
Speaker 3 (17:34):
That's a big number.
Speaker 2 (17:36):
And this is basically as he's talking about, Hey, like,
this is in order to get to the kind of
advancements we think are possible. This is how much computing
power you need, which then raises the question how much electrical.
Speaker 4 (17:46):
Power do you need?
Speaker 2 (17:46):
And where's that gonna all come from? But I guess
we can, you know, just handwave that away with well,
maybe we can turn a nuclear power plant back on
or something like that. And the interesting thing to me
about this is is that and again what I find
interesting about AI is the stuff that we're seeing that's
(18:07):
developed now is being built on the chips that were
delivered a year ago. So I do have interesting questions about, Hey,
in Vidio's new Blackwell chips that have started being delivered
in the last couple months, the stuff that's powered by
them is not really going to show up for us
until later this year, just because you know, with that
kind of increase in computing power, you can't just build
on the old architecture. So I do, you know, kind
(18:31):
of have this idea in my mind that yeah, you
still could see some pretty incredible transformations here, but I'm
also still trying to figure out. To me, it seems
like it's more on the corporate side, and that makes
it a CAPEX issue more than anything else, because I
don't see any kind of killer AI app for individuals.
Speaker 5 (18:56):
I have. I found using chattbt more on a day
to day basis that it's help with things. I'm not
telling you it's you know, revolutionized in my day to day,
but starting to understand, you know how it can just
be so much more valuable than googling something to put
out a question to chat TBT.
Speaker 3 (19:13):
For get how much search engines suck.
Speaker 5 (19:15):
Now, Yeah, I Honestly, I doubted you before with that,
but now you see the difference in the clarity and
the thoroughness of the answers versus just trying to push
a website link for someone to buy something.
Speaker 2 (19:26):
Now you also do get kind of the weird AI
answers that come up from time to time, so you
do have to fact check it, but brain assualt. Let's
be honest, you have to do that with search. Also
a lot quick break here Trive Answers next.
Speaker 1 (19:41):
Bringing the latest financial news straight to your radio every day.
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With your comments and questions about today's show and let
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Speaker 6 (20:06):
Well, seeing that it's Bruce Willis's seventieth birthday, we asked
the trivia question what is the highest grossing film of
Bruce Willis's career. That would be The Sixth Sense, which
earned six hundred and seventy two point eight million dollars worldwide.
Winner today of the Financial Exchange Show T shirt was
(20:26):
Joshua from Portland, Maine. Congrats to Josh, and we play
trivia every day here on the Financial Exchange. See complete
contest rules at Financial Exchange Show dot com.
Speaker 2 (20:38):
Taco Bell parent Young Brands partners with Nvidia to speed
up its use of a I.
Speaker 3 (20:46):
So when we talk.
Speaker 2 (20:48):
About fast food companies trying to do AI, Paul, what
the heck are we talking about here? Like what are
they saying they're gonna do.
Speaker 5 (20:59):
With So basically what they're working with Nvidia on is
piloting five hundred restaurants a broader role out of the
technology that would.
Speaker 4 (21:09):
Basically be used to.
Speaker 5 (21:11):
Sort of do a performance assessment of these different food chains,
looking at using it for drive through orders, checking the
accuracy of orders, how to schedule different workers effectively in
place suppliers. Those would be kind of the items that
would try and work through to make the businesses and
(21:33):
franchises more efficient.
Speaker 4 (21:37):
You have skepticism.
Speaker 2 (21:38):
I don't know, like what what what are you gonna
what are you going to get from.
Speaker 4 (21:42):
This the order taking?
Speaker 6 (21:43):
I don't understand how AI could be a factor. That
doesn't make sense to me.
Speaker 2 (21:49):
I guess I'm just trying to figure out, like why
do you need artificial intelligence to tell you if you're
getting your orders right or not right?
Speaker 1 (21:59):
What?
Speaker 2 (21:59):
What what makes AI able to do that in a
way that regular computing doesn't.
Speaker 5 (22:08):
I'm just wouldn't you have to manually market if you
are getting them incorrectly?
Speaker 2 (22:13):
Well, how would AI know if you're getting it incorrect
without you manually marking it somewhere to begin with?
Speaker 5 (22:17):
Like if it can take I don't know if it
can do this take the voice input of the order
versus what the printed ticket is.
Speaker 3 (22:25):
Okay, I guess I.
Speaker 4 (22:28):
Just I'm not behind the under the hood.
Speaker 3 (22:31):
You can't do that.
Speaker 2 (22:31):
With like regular voice recognition right now. I guess my
question is what are we actually branding is AI and
what's just computers being computers.
Speaker 5 (22:42):
I don't know the intricacies of what they're exactly gonna do,
but obviously it's an aim at increased productivity.
Speaker 4 (22:47):
I get that part.
Speaker 2 (22:48):
It just feels like we're getting a little bit buzzworthy
with it at this point.
Speaker 4 (22:52):
Oh, I mean, we're the ship.
Speaker 3 (22:54):
I forget who it was.
Speaker 2 (22:55):
I think it was it was one of the other
fast food chains was talking about how they were gonna
use it to help like drive predictive algorithms for what
people are gonna order and I'm.
Speaker 4 (23:03):
Like, well, that can already be done. Well done, guys.
Speaker 3 (23:06):
If it's hot, they're gonna order more mcflurries.
Speaker 4 (23:09):
Yeah.
Speaker 5 (23:09):
I mean, you know, like and that's been around like
that Starbucks, the big chains have data on that. That's
why the mobile apps are something like. But this is
the thing, like the like generative AI. The promise of
it is, hey, it can right, it can create, it
can do not it can analyze data because we like
we already have computer programs that can analyze data that
(23:31):
that's existed for a while. So this too, like why
do you need Nvidia chips to figure out if you're
getting your orders accurate or not? And that's what I
struggle with.
Speaker 2 (23:44):
I guess is, you know, the promise of this generation
of artificial intelligence is it's generative. It helps to like
create something and put it out into the world. Why
does Taco Bell need that to figure out if their
order accuracy is good? And so I'm just kind of
(24:05):
struggling there. But I admit to you know, struggling sometimes
even when being faced with really obvious things. So your
mileage may vary. Speaking of mileage, butch Wilmore and Sunny Williams.
They're back on Earth. Eiterview happened to watch the splashdown
of the capsule yesterday. Yeah, so they're back. I would
(24:29):
imagine that probably. I know that, you know, while they're
up in space, they have some you know, treadmills and
things they can run on and waits to try to,
you know, keep themselves, you know, resistance bands try to
keep themselves strong. But I got to imagine after nine
months in space, those first steps on Earth gravity are
probably not the easiest. But they're back, and I got
(24:51):
to say, pretty cool. And hey, nine months in space,
I'm willing to venture. They probably aren't itching to get
back up there, you know, anytime.
Speaker 6 (25:00):
So remind me how long were they supposed to be
up there?
Speaker 4 (25:02):
A week? Oh man?
Speaker 3 (25:06):
A week?
Speaker 1 (25:06):
Oh boy?
Speaker 2 (25:07):
Yeah, it's they They they went around the Earth four thousand,
five hundred and seventy six times and traveled one hundred
and twenty one million miles.
Speaker 4 (25:15):
What a long, strange journey it's been, dude.
Speaker 2 (25:18):
If question, from a tax perspective, does being on the
International Space Station count as being out of the country
and how does that affect your filing for twenty twenty
four and part of twenty twenty five.
Speaker 4 (25:34):
Were they paid overtime?
Speaker 1 (25:36):
Right?
Speaker 2 (25:36):
Is it do you receive overtime? Is it federally taxable? Like?
Speaker 5 (25:40):
How does it all work? Maybe they just give you
a break. You're like, you know what, don't have to
pay in this this year? You know we screwed you enough?
Speaker 2 (25:49):
Is it like Armageddon where they never have to pay
taxes ever again?
Speaker 3 (25:54):
After doing this? Just a question.
Speaker 6 (25:58):
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dot com and code Vibe twenty twenty five.
Speaker 2 (27:04):
Paul, let's talk a little bit about what BYD demonstrated yesterday.
BYD if you're not familiar with them, it's not bring
your own drink, but rather it is the Chinese.
Speaker 4 (27:15):
Duck really liked that one, I always, But.
Speaker 2 (27:21):
Rather they are the Chinese originally battery manufacturer that now
has become an ev manufacturer, and they demonstrated a vehicle
yesterday that using what they call their Super E platform,
can basically add two hundred and fifty miles of range
in five minutes, which would effectively eliminate all range anxiety
if it were true. Now I'm not saying it's not true,
(27:42):
but rather it's unclear what the long term impact is
on the battery, how it impacts you know, how many
charging cycles you can get through doing this, And this
is before you even get to the fact that you
are talking about basically insanely high levels of power transmission
in order to do that. They've even said themselves, Hey,
this is probably only going to be available in places
(28:05):
near high voltage architecture to begin with because of the
sheer power demands of doing this, And so it's not
like you're just going to be able to do this
anywhere in the country. But certainly a pretty big milestone
that they're talking about here.
Speaker 4 (28:22):
Certainly would be the case.
Speaker 5 (28:23):
You do have to take this, like you mentioned, a
little bit with a grain of solid It's sort of
you mentioned being close to a significant power source, and
anytime you get an auto announcement like this, it's certainly significant.
But it has to really bear fruit in the market
to see if this is actually the case. But if
it is, it's a total game changer. You're right, I mean,
just for basis of comparison, Tesla's most sophisticated charger on
(28:46):
the market, I believe we were covering yesterday is in
around fifteen minutes to charge up fully, so to be
able to cut that down from fifteen to five is
incredibly significant. Not to mention, the cost of these vehicles
is making a significant inroads in dent in Tesla's demand globally.
Obviously in the United States you can't purchase them, but
(29:08):
they're going for less than thirty thousand bucks, so it
remains a significant competitor to Tesla. And as we are
covering yesterday, the Chinese in terms of their exports for
auto vehicles, not only in the EV space, which we
talk about a lot, but on the gas powered side
of things. Their ability to churn out very cheap models.
They're making significant inroads in Chili, Brazil and other countries
(29:32):
in terms of their exports of gas powered vehicles in
addition to the EV side.
Speaker 2 (29:35):
All right, we're now going to do a little bit
of electrical trivia knowledge testing.
Speaker 3 (29:41):
Oh boy, Paul, can you tell me what a WAT is?
Speaker 2 (29:45):
Specifically, can you tell me what a WAT is as
it relates to a vote without putting it into your
computer right now?
Speaker 5 (29:53):
A WAT is a unit of power measuring the rate
at which enery energy can be transferred to converted correct.
Speaker 2 (30:00):
Wats are basically like the flow now it has two components,
which are voltage, which is basically like how fast is
the elect like how many electrons? How fast is the
electricity like moving there? And then you've got amps, which
is basically the rate of the flow. And then the
last one. Do either of you happen to know what
an ohm is or an ome? I don't even know
(30:20):
how to pronounce it, you know, quite honestly, I'm.
Speaker 4 (30:23):
Just thrilled I got through the WAT part of this segment.
Speaker 2 (30:28):
I don't know it's ohm, but that is the resistance
of the wire that you are dealing with there. So again,
when we talk about this and being able to charge
these ultimately, you've got a couple things that you need here.
The first is you need high voltage to be able
to charge at these these speeds, which means if you
(30:48):
just like out at your garage, you're not gonna be
able to get to like thousand vault charging just because
that's an insane amount of power to be running through
anything in your home, Like, it's just nuts. You even
talk about what like your you know, washing machine and
dryer do they're on two hundred and forty vault circuits typically,
so you're talking about something that's four x that and
you're like, yeah, probably don't need that in my garage
(31:10):
just because of the you know, risk and everything. And
this is before you even get to okay, like what's
the amperage of the wire to be able to actually
carry all of that power? And then you know from
there even okay, what's being supplied to my house and
is there even enough power? Is there even enough you know,
volume of power basically being supplied to my house to
(31:33):
be able to charge at this rate? The answer is no.
But you don't need to CAUs home charging. You say,
I can do it overnight. But when you're talking about
trying to get this out in the wild, hey, you
can't just put this at like a gas station or
a rest stop because most of them don't have the
available infrastructure for this either. Yeah, so there's a lot
of build out that needs to happen. And this is why, Yes,
(31:53):
proving that you can do this from a tech perspective
is really interesting, but logist being able to roll it
out to hold out the story, you're not having five
minute charging all over China in the next two years,
not to mention.
Speaker 5 (32:07):
The cost that would be associated when you're talking about
four to five times the you know, power required for
your washer dryer. I can't imagine what a fill up.
Speaker 2 (32:15):
Yes, the holy grail of battery technology is still can
you get to solid state batteries, lithium air batteries and
things like that that are much lighter, much denser and
as such you know, take a lot of that weight
out of the EV but also can charge much more
quickly without you know, having to go to this route.
Those are things that become you know, more interesting. But hey,
(32:37):
this is make no mistake, big milestone. But pump the
brakes pun intended. Just take a quick break here and
when we come back, we'll do a little bit of
stack roulette.
Speaker 1 (32:47):
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Speaker 6 (33:19):
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Speaker 3 (33:55):
Paul, what do you have for me for Roulette of
the Stack?
Speaker 5 (33:59):
There's some good ones in hecheck, but we've got a
federal court case here where Netflix paid fifty five million
dollars for a show, but the prosecutors are saying that
the creator blew all of the money. So this is
back in twenty eighteen, where the streaming boom was probably
at its peak and there was just a ton of
(34:19):
money being sloshed around to purchase new shows out there.
So there's a show creator out there, Eric Rinch, who
had really not done a tremendous amount of content. He
had done a movie back in twenty thirteen called forty
seven Ronin, and he had also put together in twenty
sixteen twenty seventeen some sci fi series. But ultimately he
(34:40):
was pitching his new series that was gonna have Keanu
Reeves in it.
Speaker 4 (34:44):
And asked for a big k.
Speaker 5 (34:46):
Yeah, he was asking for some big bucks and Amazon
was initially his agreement, but then Netflix came in at
the last minute and gave him forty four million dollars
upfront to make the series. All sounds well and good.
Within eighteen months of sorry to make the series, he
asked for an eleven million more. So what he did
with this money, Chuck, was he transferred into his personal accounts,
(35:08):
invested half of it into call auctions on an unnamed
Borrow biofarmer company. He lost all that money there. He
spent two point four million to buy five rolls Royces Ferrari.
Speaker 3 (35:19):
What do you need five for?
Speaker 5 (35:21):
It was six total, five rolls Roses and one Ferrari.
And he put one point eight million to pay credit
card bills and then he paid another How do you
run up.
Speaker 3 (35:34):
What's your credit limit?
Speaker 6 (35:36):
I could do that pretty quick, no problem.
Speaker 4 (35:38):
He spent Oh this is crazy.
Speaker 2 (35:40):
Six guys single handedly distorting the FED statistics.
Speaker 5 (35:43):
This must be the most mind blowing of all six
hundred and thirty eight thousand for two mattresses. How do
you even how do you even get two mattresses to
get up to six hundred and thirty eight thousand?
Speaker 3 (35:52):
What? What do you what do you get for that?
What does it do?
Speaker 5 (35:56):
It's gotta be the biggest bed anyone's ever seen. So
long story short, they are there in court fighting that out.
No comment from from Netflix on this story. He also
began acting erradically, as you can imagine with some of
these spending spending items here, but he also said that
(36:16):
he was began to have the ability to predict lightning
strikes amidst going off the rails here.
Speaker 2 (36:21):
Oh that's what the mattresses are for. I'm sorry, I
just six hundred and thirty eight thousand. That's one and
a half times the median US home for two mattresses.
Speaker 4 (36:36):
I don't know. You know, the mattresses exist, who's selling them?
Speaker 2 (36:40):
You could have one and a half median houses or
two mattresses, and you pick two mattresses.
Speaker 3 (36:45):
What do they do?
Speaker 4 (36:47):
Who sells those?
Speaker 2 (36:49):
Okay, I gotta figure out what we're doing here in
terms of okay, most expensive mattresses.
Speaker 6 (36:57):
I saw one for like fifty eight thousand or somethings.
Speaker 2 (37:00):
Is rating from twenty thousand dollars to one point six
million dollars. Okay, this here we go. So if you're
looking for the expensive ones, uh this one is called
the how do you pronounce the A with the two
dots over it?
Speaker 3 (37:16):
Hostins Hostin's.
Speaker 4 (37:19):
The Grand Vita is one point six.
Speaker 2 (37:21):
It's handcrafted using the finest natural materials such as horsehair,
cotton wool, and.
Speaker 3 (37:27):
Flax fla flax flax.
Speaker 2 (37:30):
Seed flax, not the seeds, but the actual flax. They
give you the seeds and you can eat those as
like a protein supplement. The manufacturing process involves meticulous attention
to detail, with each mattress taking over three hundred and
twenty hours of skilled craftsmanship to create, and ultimately it's
going to be ruined when your cat throws up on it, Like,
(37:52):
I don't know. This one here is called the Floating Bed.
It's one point six million dollars. Uh it. It appears
to float in mid air thanks to a sophisticated magnetic
system that keeps it suspended off the ground.
Speaker 4 (38:06):
So basically, leave the mattresses.
Speaker 2 (38:09):
Can you like disable it if you run like a
stronger magnet near it?
Speaker 1 (38:13):
Like?
Speaker 3 (38:13):
Is that how you wake someone?
Speaker 2 (38:14):
Up, Is you just like I don't know anyways, that's
kind of disappointing that that stuff exists. Let's take a
quick break. We'll see you tomorrow after the FED. We'll
have all the recap on tomorrow's show.
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the hosts. Do not reflect the opinions of Armstrong Advisory
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(00:20):
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(01:02):
This is the Financial Exchange with Chuck Zada and Paul Lane.
Speaker 2 (01:08):
Out two on the Financial Exchange, Chuck Paul Tucker with you,
and we got markets having.
Speaker 3 (01:13):
A cautious rally today.
Speaker 2 (01:15):
Thus far, the Dow is up two hundred and thirty
four points, about half a percent, The s and P
up thirty one points, also about half a percent. In
the NASDAK it's about one hundred and thirty points, about
three quarters of percent. So nice little relief rally day.
But remember these indices were all down more than this yesterday,
the SMP down about double can't remember on the Nasdaq
(01:37):
or Dow exactly how much they fell, but.
Speaker 3 (01:39):
It was worse.
Speaker 2 (01:41):
The tenure US Treasury not really moving much before the
Fed meeting this afternoon. US Tenure Treasury at four point
three zero two percent. That's up two point one basis points.
Right now, the national fixed rate mortgage for thirty years,
according to Mortgage News Daily, still sits at six point
seven eight percent, So we've been just hanging around that
(02:03):
six and three quarters range for the last couple of
weeks now, after being up in the low sevens earlier
this year.
Speaker 3 (02:10):
Other things that.
Speaker 2 (02:11):
Are moving West Texas Intermediate for oil is it sixty
seven zero four fourteen cents a barrel, triplea national averagur
gas prices up now, gie, big jump.
Speaker 3 (02:20):
Actually this is actually I saw this.
Speaker 2 (02:22):
There are some refinery switches that are going on right now,
and so gas prices up two point four cents a
gallon over night to three ten and two tenths of ascent.
New England actually still kind of ahead of the curve
on this, but the expectations are that New England's going
to start seeing some upward pricing pressure in the next
(02:42):
figure several weeks. This just due to the switchover from
the winter blends of gasoline to the summer blends. Finally,
we've got gold today down four dollars and thirty cents
announced to three thousand and thirty six dollars and fifty cents,
and so overall, nothing moving too much in advance of
well the FED meeting this afternoon.
Speaker 3 (03:05):
Let's talk a little bit.
Speaker 2 (03:06):
About one of the big trends that we've seen in
equity markets so far this year, and specifically what that
is is that, well, the best way to put it
is that international markets are doing a lot better than
US markets generally. So here's what we've seen, and this
is through the close yesterday that I have here, and
(03:29):
I'm just going to quote level changes, not total return,
because I'm not factoring in dividends, because they can be
taxed all kinds of differently depending on where you are
in the world. The S and P five hundred year
to date as of yesterday was down four point five
to four percent. The MSCI Emerging Markets Index is up
six point four to eight percent, the MSCI EFA Index
(03:52):
Europe Asia Far East up eleven point zero six percent,
MSCI Japan up four point four seven MSCI Europe of
fifteen point three. Basically, where I'm going on this is
that unlike the last fifteen years or so, where US
markets and specifically the S and P five hundred have
just absolutely dominated their overseas counterparts, the opposite is absolutely
(04:15):
happening this year, and it is something that I think
has caught a lot of investors kind of off guard
because they weren't prepared for it. And so what you
are seeing here is kind of a reassessment of where
capital needs to flow, not just based on what's going
on in markets here, but also talking about, hey, what
(04:36):
fiscal plans are we seeing from Germany and potentially the
rest of the EU, How is trade going to be impacted,
hows that can impact how capital flows back and forth.
There's a lot going on here and it's something where
I know that again, no one knows where any of
this is going to go. But remember we've had basically
(04:57):
almost fifteen years of US outperformance compared to international It
would be surprising to me if all of a sudden
we sit here and we're like, well, that corrected itself
in three months. I guess we can call it a
day and go back to the SMP trouncing it. That
may very well happen, but I think that we have
to see how this plays out because there's a lot
that potentially is changing when it comes to global trade,
(05:19):
capital flows, and things like that over the course of
this year and into the future.
Speaker 4 (05:23):
It's a really interesting idea to cover.
Speaker 5 (05:24):
Like you mentioned, the S and P five hundred has
just crushed international markets for the longest time here, and
you've had a couple of different factors that have led
to the resurgence of whether it be the European markets
or the Asian markets.
Speaker 4 (05:38):
You know, part of that was the.
Speaker 2 (05:39):
UH can I just give some scale, like as to
the magnitude of what we've seen on this. So let's
go back to the start of the twenty tens. So
let's go back to one one twenty ten. Just as
an example, the S and P five hundred during that
time is up four hundred and five point eight percent.
The MSCI Emerging Markets Index is up fifteen point seventy four.
(06:04):
The MSCI EFA is up fifty eight point nine to one,
the MSCI Japan's up eighty six point five two, MSCI
Europe is up sixty point one four. So just to
give you a sense of the scale here, we're not
talking like the US. You know, the S and P
outperformed these other indices by twenty thirty or forty percent
over that time. I mean, in the case of emerging markets,
(06:28):
emerging markets returned like one percent a year. Again, this
is a level change. It's not factoring in dividends, so
you know, take that for what it's worth. But in
terms of you know, stock like capital appreciation, MSCI Emerging
Market indext basically returned one percent a year for the
last fifteen years, and the S and P five hundred
returned fifteen sixteen percent over that time. So, like it's
(06:50):
just huge scale that we're talking about in terms of
how things have gone.
Speaker 5 (06:54):
And part of the correction is valuations returning back. We've
talked about before that whether you're looking at four pe
price of sales, any type of valuation metric for the
s and P five hundred, we were at levels that
we haven't seen since the late nineties. So some of
this selloff could be due to just that there was
a significant amount of market euphoria really after November and
(07:14):
the end of twenty twenty four. And then you've also
had some geopolitical events occur. Obviously the tariffs, which we've
spoken about quite a bit, but other countries taking different
policy stances. Germany we talked about a little bit on
yesterday's show, the expansion of their fiscal policy, a country
that had typically been very conservative from a debt standpoint,
staying that they're going to be a little bit more
(07:36):
comminative and raising more debt. You've also had interactions between
Brazil and China to kind of increased trade activity between
those two countries, and just sort of global economic policy
outside of the US loosing it up a little bit
compared to a US policy that has been tightening over
the course of the last couple of years or so.
And then you also have had some events out of China,
(07:58):
the Deep Seek event that occurred in late January, and
then Bid yesterday coming out with allegedly a electric vehicle
batty that could charge in five minutes, causing a lot
of these shakeups that we've seen here.
Speaker 4 (08:09):
So it's been interesting to follow.
Speaker 2 (08:11):
It has, and again I don't think any of us
know exactly how this is going to play out in
the long run. Like if if you had pulled investors
back at the start of twenty ten and just ask them, hey,
over the next fifteen years, what do you think the
average rate of return for US and international stocks is
(08:33):
going to be over that time, and you like put
it into like your traditional like three big buckets like US, International, Developed,
and emerging markets. Here's what most people probably would have
come back with then. And this is just from again
how like what you see with like big institutional investment consultants.
They would have said, okay, US stocks are going to
(08:53):
return nine percent a year, International stocks, you know, developed
are going to return eight and a half percent a year,
Emerging markets are going to return ten percent a year,
and they would.
Speaker 3 (09:04):
Have called it a day.
Speaker 2 (09:05):
And it's not to say that like all institutional investment
consultants are dumb and they should have seen it coming.
It's more like you don't know how small changes potentially
evolve into you know, big investment differences over a fifteen
year period, and so you know, to look at this
right now and try to have any you know, predictive
(09:29):
value as to well, this is what we're seeing like
the first few months of this year, and this is
what it means like for the long term. We have
no idea, but what I can tell you is that
if you look at the period before what I just referenced,
so I was talking about twenty ten through twenty twenty four,
Let's now go look at the fifteen year period before.
(09:49):
And I don't know what I'm gonna find. By the way, here,
so like that we're we're gonna do this live. Here's
what we see. If we go from one to one
of ninety five through twelve thirty one of two thousand
and nine, here are the returns for the same indices
that I just gave you. The S and P five
hundred during that time returned to one hundred and forty
two point eight percent the MSCI Emerging Markets Index was
(10:13):
one hundred point nine, the MSCI EFA was fifty two
thirty one, MSCI Japan was thirty four twenty three, and
MSCI Europe was one thirty three point seven in terms
of percentage. So overall, US stocks still you know, carried
the day for that fifteen year period, but by a
much smaller amount compared to Europe and EM and especially
(10:37):
I mean again, EM was the second best performing you know, category,
second best performing index here, whereas it was the worst
in the other one. Just because something does well even
for fifteen years, doesn't mean anything about where it's gonna
go the next fifteen So I don't know what any
of what we're seeing, like if if what we're seeing
today means anything. Because we're going through a period where
(11:01):
there are some potentially pretty dramatic shakeups of world trade
and capital flows on the horizon. We've never lived through this,
We've never lived through potentially something of this scale moving
this quickly through the world financial system, in the world
trade system. Anyone who says like they know how this
(11:22):
is gonna play out, I think is lying to themselves.
Speaker 3 (11:24):
I don't know. I don't know who it's gonna be
good for.
Speaker 2 (11:27):
I don't know who it's gonna be bad for, you know, like,
I have no clue we're talking about. We're talking about
things that have not been in mainstream consciousness for eighty years.
Speaker 5 (11:39):
Yeah, I'm just not willing to print this whole story
that because of the teriff situation. It's just so tenuous.
It's it's hard to make sweeping projection. I mean it's
hard always, but even more challenging when the crux of
the concerns with the US market are tied to tariffs,
which are so.
Speaker 4 (11:58):
Constantly evolving.
Speaker 2 (11:59):
What it's a if the average US teriff rate at
the end of this year is twenty five percent, No,
would it surprise you if the average US tariff right
at the end of this year is zero?
Speaker 4 (12:07):
No, that's no.
Speaker 2 (12:08):
They have no idea like this could all end up
being resolved in a bunch of negotiation in there and
no tariffs that are.
Speaker 5 (12:15):
Imposed by the end of this year. Exactly exactly. That's
where I come at. It is just open on each
side to either either outcome.
Speaker 3 (12:23):
Let's take a quick break here.
Speaker 2 (12:24):
When we come back, we'll do a little bit of trivia,
and then we'll talk about what retail investors have been
doing recently.
Speaker 3 (12:29):
Right after this, there's only one show that follows well.
Speaker 1 (12:34):
Street's continued volatility. Keep it here all morning long on
the Financial Exchange Radio Network. The Financial Exchange streams live
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Speaker 6 (12:53):
Let's do a little bit of trivia here on the
Financial Exchange and believe it or not, today is Bruce
Willis is setnath birthday. Before retiring from acting, Willis was
one of Hollywood's most bankable stars. Movies with Willis as
the lead actor have generated over five billion dollars at
the box office. Tribute question today, what is the highest
(13:16):
grossing film of Bruce Willis's career? Once again, what is
the highest grossing film of Bruce Willis's career?
Speaker 3 (13:25):
Be the sixth.
Speaker 6 (13:26):
Person today to text us at six one seven three
six two thirteen eighty five with the correct answer, and
he went a brand new Financial Exchange Show t shirt.
Speaker 4 (13:35):
Once again, the.
Speaker 6 (13:36):
Sixth correct response to text us at six one seven
three six two thirteen eighty five will be our winner.
See complete contest rules at Financial Exchange Show Dot.
Speaker 2 (13:46):
Com peace in CNBC, retail investors ditched by the mentality
during market correction. I'll quote here, retail outflows from US
equities roase to about four billion dollars over the past
two weeks as tariff tariff chaos and mounting economic concerns
caused a three week pull back in the S and
P five hundred. Discording to data from Barkley's I don't
(14:07):
really know what to make of this because I've seen
some conflicting reports about how like money move. Like I
don't know what you can actually believe as far as
like retail's doing this or retail's doing that, because I've
seen data that is again just kind of all different
on this.
Speaker 3 (14:25):
I also don't know why, I know why you would.
Speaker 2 (14:30):
In theory try to, you know, figure out like what
retail is or isn't doing, because historically, you know, aside
from a very brief period in twenty twenty one, retail
generally is kind of referred to as the dumb money.
It's not my term, it's just, you know, how it's
referred to in the biz. That also implies the existence
of smart money, which, as we've discussed, doesn't really exist either.
(14:52):
Everyone's like, oh, the smart money is the bond so well, yeah,
why do all bond traders get smoked the last few years,
you know, in terms of how things were moving, and well,
the bond market knows what's going on.
Speaker 3 (15:00):
I know it doesn't.
Speaker 2 (15:00):
It didn't think that rates were going up as much
as they were back in twenty twenty two.
Speaker 3 (15:05):
So I never quite know what to do with pieces
like this.
Speaker 2 (15:09):
I generally try just to not read them, but I
appreciate Tucker putting it in our stacks so that we
can talk about it, because again, people seem to be like, oh,
like retail traders, weren't. I just I don't know what
to do with something like this.
Speaker 5 (15:23):
The retail flows hard to track, but what we can
likely agree on is that the speculative sort of flavor
of the market has subsided quite a bit year to date.
It doesn't seem like there's the same market for that
there was, you know, over the course of the last
couple months in late last year.
Speaker 2 (15:43):
Seems like it, Yeah, seems like it. I find something
much more interesting here in this piece. Meta becomes Final
Magnificent seven stock to turn negative in twenty twenty five.
So here's what you're seeing year to date for mags
in companies. Microsoft off about eight percent, in Vidio down
about twelve, Apple down about thirteen, Amazon down eleven, Tesla
(16:07):
down forty two, Google down thirteen, and Meta down down
about half a percent. But obviously met has been holding
up better than the other one's. Apple wasn'tntil recently, and
then Apple kind of puked all over itself for the
last you know, week and a half or so. But
the interesting thing right now is that for the first
time since November of twenty two, this is the first
(16:28):
time that all seven of the mag seven names are
underperforming the S and P five hundred for the last
three months.
Speaker 4 (16:34):
Wow.
Speaker 5 (16:34):
I mean, they have just carried the performance so much
over the course of the last couple of years that
it probably was about time, right, Like, you can't continue forever.
Speaker 2 (16:45):
We're not going to become the United States of Microsoft.
We'd have to change the initials first and foremost, it's
more likely to be the United States of Apple.
Speaker 5 (16:51):
I mean, we talked about the waitings that they've had
in the S and P five hundred. I know that
was up in and around thirty plus percent or so.
I'm not sure if some of Tesla's sell off and
some of these other ones. You know what it looks
like today. Obviously, I'm sure it's down slightly, probably not
a tremendous amount, but the waiting was just so significant,
and the amount of performance that they've added to the
S and P five hundred of the last couple of
years is massive, So it probably was time at some point.
(17:14):
But it doesn't look like there's any real near term
catalyst for any of those seven names for the time being,
but we'll see.
Speaker 2 (17:24):
Sticking with MAG seven. In videos, CEO Jensen Huang said
that AI computing needs need to scale up by a hundredfold.
Speaker 3 (17:34):
That's a big number.
Speaker 2 (17:36):
And this is basically as he's talking about, Hey, like,
this is in order to get to the kind of
advancements we think are possible. This is how much computing
power you need, which then raises the question how much electrical.
Speaker 4 (17:46):
Power do you need?
Speaker 2 (17:46):
And where's that gonna all come from? But I guess
we can, you know, just handwave that away with well,
maybe we can turn a nuclear power plant back on
or something like that. And the interesting thing to me
about this is is that and again what I find
interesting about AI is the stuff that we're seeing that's
(18:07):
developed now is being built on the chips that were
delivered a year ago. So I do have interesting questions about, Hey,
in Vidio's new Blackwell chips that have started being delivered
in the last couple months, the stuff that's powered by
them is not really going to show up for us
until later this year, just because you know, with that
kind of increase in computing power, you can't just build
on the old architecture. So I do, you know, kind
(18:31):
of have this idea in my mind that yeah, you
still could see some pretty incredible transformations here, but I'm
also still trying to figure out. To me, it seems
like it's more on the corporate side, and that makes
it a CAPEX issue more than anything else, because I
don't see any kind of killer AI app for individuals.
Speaker 5 (18:56):
I have. I found using chattbt more on a day
to day basis that it's help with things. I'm not
telling you it's you know, revolutionized in my day to day,
but starting to understand, you know how it can just
be so much more valuable than googling something to put
out a question to chat TBT.
Speaker 3 (19:13):
For get how much search engines suck.
Speaker 5 (19:15):
Now, Yeah, I Honestly, I doubted you before with that,
but now you see the difference in the clarity and
the thoroughness of the answers versus just trying to push
a website link for someone to buy something.
Speaker 2 (19:26):
Now you also do get kind of the weird AI
answers that come up from time to time, so you
do have to fact check it, but brain assualt. Let's
be honest, you have to do that with search. Also
a lot quick break here Trive Answers next.
Speaker 1 (19:41):
Bringing the latest financial news straight to your radio every day.
It's the Financial Exchange on the Financial Exchange Radio Network
tekst US six one, seven, three, six, two thirteen eighty five.
With your comments and questions about today's show and let
us know what you think about the stories you're covering.
This is the Financial Exchange Radio Network.
Speaker 6 (20:06):
Well, seeing that it's Bruce Willis's seventieth birthday, we asked
the trivia question what is the highest grossing film of
Bruce Willis's career. That would be The Sixth Sense, which
earned six hundred and seventy two point eight million dollars worldwide.
Winner today of the Financial Exchange Show T shirt was
(20:26):
Joshua from Portland, Maine. Congrats to Josh, and we play
trivia every day here on the Financial Exchange. See complete
contest rules at Financial Exchange Show dot com.
Speaker 2 (20:38):
Taco Bell parent Young Brands partners with Nvidia to speed
up its use of a I.
Speaker 3 (20:46):
So when we talk.
Speaker 2 (20:48):
About fast food companies trying to do AI, Paul, what
the heck are we talking about here? Like what are
they saying they're gonna do.
Speaker 5 (20:59):
With So basically what they're working with Nvidia on is
piloting five hundred restaurants a broader role out of the
technology that would.
Speaker 4 (21:09):
Basically be used to.
Speaker 5 (21:11):
Sort of do a performance assessment of these different food chains,
looking at using it for drive through orders, checking the
accuracy of orders, how to schedule different workers effectively in
place suppliers. Those would be kind of the items that
would try and work through to make the businesses and
(21:33):
franchises more efficient.
Speaker 4 (21:37):
You have skepticism.
Speaker 2 (21:38):
I don't know, like what what what are you gonna
what are you going to get from.
Speaker 4 (21:42):
This the order taking?
Speaker 6 (21:43):
I don't understand how AI could be a factor. That
doesn't make sense to me.
Speaker 2 (21:49):
I guess I'm just trying to figure out, like why
do you need artificial intelligence to tell you if you're
getting your orders right or not right?
Speaker 1 (21:59):
What?
Speaker 2 (21:59):
What what makes AI able to do that in a
way that regular computing doesn't.
Speaker 5 (22:08):
I'm just wouldn't you have to manually market if you
are getting them incorrectly?
Speaker 2 (22:13):
Well, how would AI know if you're getting it incorrect
without you manually marking it somewhere to begin with?
Speaker 5 (22:17):
Like if it can take I don't know if it
can do this take the voice input of the order
versus what the printed ticket is.
Speaker 3 (22:25):
Okay, I guess I.
Speaker 4 (22:28):
Just I'm not behind the under the hood.
Speaker 3 (22:31):
You can't do that.
Speaker 2 (22:31):
With like regular voice recognition right now. I guess my
question is what are we actually branding is AI and
what's just computers being computers.
Speaker 5 (22:42):
I don't know the intricacies of what they're exactly gonna do,
but obviously it's an aim at increased productivity.
Speaker 4 (22:47):
I get that part.
Speaker 2 (22:48):
It just feels like we're getting a little bit buzzworthy
with it at this point.
Speaker 4 (22:52):
Oh, I mean, we're the ship.
Speaker 3 (22:54):
I forget who it was.
Speaker 2 (22:55):
I think it was it was one of the other
fast food chains was talking about how they were gonna
use it to help like drive predictive algorithms for what
people are gonna order and I'm.
Speaker 4 (23:03):
Like, well, that can already be done. Well done, guys.
Speaker 3 (23:06):
If it's hot, they're gonna order more mcflurries.
Speaker 4 (23:09):
Yeah.
Speaker 5 (23:09):
I mean, you know, like and that's been around like
that Starbucks, the big chains have data on that. That's
why the mobile apps are something like. But this is
the thing, like the like generative AI. The promise of
it is, hey, it can right, it can create, it
can do not it can analyze data because we like
we already have computer programs that can analyze data that
(23:31):
that's existed for a while. So this too, like why
do you need Nvidia chips to figure out if you're
getting your orders accurate or not? And that's what I
struggle with.
Speaker 2 (23:44):
I guess is, you know, the promise of this generation
of artificial intelligence is it's generative. It helps to like
create something and put it out into the world. Why
does Taco Bell need that to figure out if their
order accuracy is good? And so I'm just kind of
(24:05):
struggling there. But I admit to you know, struggling sometimes
even when being faced with really obvious things. So your
mileage may vary. Speaking of mileage, butch Wilmore and Sunny Williams.
They're back on Earth. Eiterview happened to watch the splashdown
of the capsule yesterday. Yeah, so they're back. I would
(24:29):
imagine that probably. I know that, you know, while they're
up in space, they have some you know, treadmills and
things they can run on and waits to try to,
you know, keep themselves, you know, resistance bands try to
keep themselves strong. But I got to imagine after nine
months in space, those first steps on Earth gravity are
probably not the easiest. But they're back, and I got
(24:51):
to say, pretty cool. And hey, nine months in space,
I'm willing to venture. They probably aren't itching to get
back up there, you know, anytime.
Speaker 6 (25:00):
So remind me how long were they supposed to be
up there?
Speaker 4 (25:02):
A week? Oh man?
Speaker 3 (25:06):
A week?
Speaker 1 (25:06):
Oh boy?
Speaker 2 (25:07):
Yeah, it's they They they went around the Earth four thousand,
five hundred and seventy six times and traveled one hundred
and twenty one million miles.
Speaker 4 (25:15):
What a long, strange journey it's been, dude.
Speaker 2 (25:18):
If question, from a tax perspective, does being on the
International Space Station count as being out of the country
and how does that affect your filing for twenty twenty
four and part of twenty twenty five.
Speaker 4 (25:34):
Were they paid overtime?
Speaker 1 (25:36):
Right?
Speaker 2 (25:36):
Is it do you receive overtime? Is it federally taxable? Like?
Speaker 5 (25:40):
How does it all work? Maybe they just give you
a break. You're like, you know what, don't have to
pay in this this year? You know we screwed you enough?
Speaker 2 (25:49):
Is it like Armageddon where they never have to pay
taxes ever again?
Speaker 3 (25:54):
After doing this? Just a question.
Speaker 6 (25:58):
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(27:01):
dot com and code Vibe twenty twenty five.
Speaker 2 (27:04):
Paul, let's talk a little bit about what BYD demonstrated yesterday.
BYD if you're not familiar with them, it's not bring
your own drink, but rather it is the Chinese.
Speaker 4 (27:15):
Duck really liked that one, I always, But.
Speaker 2 (27:21):
Rather they are the Chinese originally battery manufacturer that now
has become an ev manufacturer, and they demonstrated a vehicle
yesterday that using what they call their Super E platform,
can basically add two hundred and fifty miles of range
in five minutes, which would effectively eliminate all range anxiety
if it were true. Now I'm not saying it's not true,
(27:42):
but rather it's unclear what the long term impact is
on the battery, how it impacts you know, how many
charging cycles you can get through doing this, And this
is before you even get to the fact that you
are talking about basically insanely high levels of power transmission
in order to do that. They've even said themselves, Hey,
this is probably only going to be available in places
(28:05):
near high voltage architecture to begin with because of the
sheer power demands of doing this, And so it's not
like you're just going to be able to do this
anywhere in the country. But certainly a pretty big milestone
that they're talking about here.
Speaker 4 (28:22):
Certainly would be the case.
Speaker 5 (28:23):
You do have to take this, like you mentioned, a
little bit with a grain of solid It's sort of
you mentioned being close to a significant power source, and
anytime you get an auto announcement like this, it's certainly significant.
But it has to really bear fruit in the market
to see if this is actually the case. But if
it is, it's a total game changer. You're right, I mean,
just for basis of comparison, Tesla's most sophisticated charger on
(28:46):
the market, I believe we were covering yesterday is in
around fifteen minutes to charge up fully, so to be
able to cut that down from fifteen to five is
incredibly significant. Not to mention, the cost of these vehicles
is making a significant inroads in dent in Tesla's demand globally.
Obviously in the United States you can't purchase them, but
(29:08):
they're going for less than thirty thousand bucks, so it
remains a significant competitor to Tesla. And as we are
covering yesterday, the Chinese in terms of their exports for
auto vehicles, not only in the EV space, which we
talk about a lot, but on the gas powered side
of things. Their ability to churn out very cheap models.
They're making significant inroads in Chili, Brazil and other countries
(29:32):
in terms of their exports of gas powered vehicles in
addition to the EV side.
Speaker 2 (29:35):
All right, we're now going to do a little bit
of electrical trivia knowledge testing.
Speaker 3 (29:41):
Oh boy, Paul, can you tell me what a WAT is?
Speaker 2 (29:45):
Specifically, can you tell me what a WAT is as
it relates to a vote without putting it into your
computer right now?
Speaker 5 (29:53):
A WAT is a unit of power measuring the rate
at which enery energy can be transferred to converted correct.
Speaker 2 (30:00):
Wats are basically like the flow now it has two components,
which are voltage, which is basically like how fast is
the elect like how many electrons? How fast is the
electricity like moving there? And then you've got amps, which
is basically the rate of the flow. And then the
last one. Do either of you happen to know what
an ohm is or an ome? I don't even know
(30:20):
how to pronounce it, you know, quite honestly, I'm.
Speaker 4 (30:23):
Just thrilled I got through the WAT part of this segment.
Speaker 2 (30:28):
I don't know it's ohm, but that is the resistance
of the wire that you are dealing with there. So again,
when we talk about this and being able to charge
these ultimately, you've got a couple things that you need here.
The first is you need high voltage to be able
to charge at these these speeds, which means if you
(30:48):
just like out at your garage, you're not gonna be
able to get to like thousand vault charging just because
that's an insane amount of power to be running through
anything in your home, Like, it's just nuts. You even
talk about what like your you know, washing machine and
dryer do they're on two hundred and forty vault circuits typically,
so you're talking about something that's four x that and
you're like, yeah, probably don't need that in my garage
(31:10):
just because of the you know, risk and everything. And
this is before you even get to okay, like what's
the amperage of the wire to be able to actually
carry all of that power? And then you know from
there even okay, what's being supplied to my house and
is there even enough power? Is there even enough you know,
volume of power basically being supplied to my house to
(31:33):
be able to charge at this rate? The answer is no.
But you don't need to CAUs home charging. You say,
I can do it overnight. But when you're talking about
trying to get this out in the wild, hey, you
can't just put this at like a gas station or
a rest stop because most of them don't have the
available infrastructure for this either. Yeah, so there's a lot
of build out that needs to happen. And this is why, Yes,
(31:53):
proving that you can do this from a tech perspective
is really interesting, but logist being able to roll it
out to hold out the story, you're not having five
minute charging all over China in the next two years,
not to mention.
Speaker 5 (32:07):
The cost that would be associated when you're talking about
four to five times the you know, power required for
your washer dryer. I can't imagine what a fill up.
Speaker 2 (32:15):
Yes, the holy grail of battery technology is still can
you get to solid state batteries, lithium air batteries and
things like that that are much lighter, much denser and
as such you know, take a lot of that weight
out of the EV but also can charge much more
quickly without you know, having to go to this route.
Those are things that become you know, more interesting. But hey,
(32:37):
this is make no mistake, big milestone. But pump the
brakes pun intended. Just take a quick break here and
when we come back, we'll do a little bit of
stack roulette.
Speaker 1 (32:47):
Find daily interviews and full shows of the Financial Exchange
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Hit that subscribe button and leave us a five star review.
(33:09):
You're listening to the Financial Exchange Radio Network.
Speaker 6 (33:19):
The Financial Exchange is part of our partnership with the
Disabled American Veterans Department of Massachusetts. This year's five K
is Saturday, November eighth, and registration is now open. The
race has sold out in each of the past four
years and slots will fill up.
Speaker 4 (33:34):
Quickly, so don't delay.
Speaker 6 (33:36):
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k dot Boston.
Speaker 3 (33:55):
Paul, what do you have for me for Roulette of
the Stack?
Speaker 5 (33:59):
There's some good ones in hecheck, but we've got a
federal court case here where Netflix paid fifty five million
dollars for a show, but the prosecutors are saying that
the creator blew all of the money. So this is
back in twenty eighteen, where the streaming boom was probably
at its peak and there was just a ton of
(34:19):
money being sloshed around to purchase new shows out there.
So there's a show creator out there, Eric Rinch, who
had really not done a tremendous amount of content. He
had done a movie back in twenty thirteen called forty
seven Ronin, and he had also put together in twenty
sixteen twenty seventeen some sci fi series. But ultimately he
(34:40):
was pitching his new series that was gonna have Keanu
Reeves in it.
Speaker 4 (34:44):
And asked for a big k.
Speaker 5 (34:46):
Yeah, he was asking for some big bucks and Amazon
was initially his agreement, but then Netflix came in at
the last minute and gave him forty four million dollars
upfront to make the series. All sounds well and good.
Within eighteen months of sorry to make the series, he
asked for an eleven million more. So what he did
with this money, Chuck, was he transferred into his personal accounts,
(35:08):
invested half of it into call auctions on an unnamed
Borrow biofarmer company. He lost all that money there. He
spent two point four million to buy five rolls Royces Ferrari.
Speaker 3 (35:19):
What do you need five for?
Speaker 5 (35:21):
It was six total, five rolls Roses and one Ferrari.
And he put one point eight million to pay credit
card bills and then he paid another How do you
run up.
Speaker 3 (35:34):
What's your credit limit?
Speaker 6 (35:36):
I could do that pretty quick, no problem.
Speaker 4 (35:38):
He spent Oh this is crazy.
Speaker 2 (35:40):
Six guys single handedly distorting the FED statistics.
Speaker 5 (35:43):
This must be the most mind blowing of all six
hundred and thirty eight thousand for two mattresses. How do
you even how do you even get two mattresses to
get up to six hundred and thirty eight thousand?
Speaker 3 (35:52):
What? What do you what do you get for that?
What does it do?
Speaker 5 (35:56):
It's gotta be the biggest bed anyone's ever seen. So
long story short, they are there in court fighting that out.
No comment from from Netflix on this story. He also
began acting erradically, as you can imagine with some of
these spending spending items here, but he also said that
(36:16):
he was began to have the ability to predict lightning
strikes amidst going off the rails here.
Speaker 2 (36:21):
Oh that's what the mattresses are for. I'm sorry, I
just six hundred and thirty eight thousand. That's one and
a half times the median US home for two mattresses.
Speaker 4 (36:36):
I don't know. You know, the mattresses exist, who's selling them?
Speaker 2 (36:40):
You could have one and a half median houses or
two mattresses, and you pick two mattresses.
Speaker 3 (36:45):
What do they do?
Speaker 4 (36:47):
Who sells those?
Speaker 2 (36:49):
Okay, I gotta figure out what we're doing here in
terms of okay, most expensive mattresses.
Speaker 6 (36:57):
I saw one for like fifty eight thousand or somethings.
Speaker 2 (37:00):
Is rating from twenty thousand dollars to one point six
million dollars. Okay, this here we go. So if you're
looking for the expensive ones, uh this one is called
the how do you pronounce the A with the two
dots over it?
Speaker 3 (37:16):
Hostins Hostin's.
Speaker 4 (37:19):
The Grand Vita is one point six.
Speaker 2 (37:21):
It's handcrafted using the finest natural materials such as horsehair,
cotton wool, and.
Speaker 3 (37:27):
Flax fla flax flax.
Speaker 2 (37:30):
Seed flax, not the seeds, but the actual flax. They
give you the seeds and you can eat those as
like a protein supplement. The manufacturing process involves meticulous attention
to detail, with each mattress taking over three hundred and
twenty hours of skilled craftsmanship to create, and ultimately it's
going to be ruined when your cat throws up on it, Like,
(37:52):
I don't know. This one here is called the Floating Bed.
It's one point six million dollars. Uh it. It appears
to float in mid air thanks to a sophisticated magnetic
system that keeps it suspended off the ground.
Speaker 4 (38:06):
So basically, leave the mattresses.
Speaker 2 (38:09):
Can you like disable it if you run like a
stronger magnet near it?
Speaker 1 (38:13):
Like?
Speaker 3 (38:13):
Is that how you wake someone?
Speaker 2 (38:14):
Up, Is you just like I don't know anyways, that's
kind of disappointing that that stuff exists. Let's take a
quick break. We'll see you tomorrow after the FED. We'll
have all the recap on tomorrow's show.
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