October 11, 2025 • 39 mins
Chris Markowski discusses the current financial landscape, focusing on the debasement trade, stagflation, and the importance of long-term investment strategies. He emphasizes the need for investors to be cautious of behavioral biases and the pitfalls of speculative trading. Markowski advocates for a personal CFO approach to wealth management, highlighting the significance of understanding market dynamics and making informed investment decisions.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:07):
Well, no and author, investment banker, consumer advocate, analyst trader
Chris Markowski is the watchdog on the Wall Street. Do
you want to answer exposing the lies and myths that
the big brokerage firms, the mainstream press, and the government
are pushing to keep Americans away from financial freedom.
Speaker 2 (00:28):
You can't handle the true.
Speaker 1 (00:30):
Bringing America the truth about what really happens in the
financial world.
Speaker 3 (00:35):
Ladies and gentlemen, We're not here to indulge in fantasy,
but in political and economic reality.
Speaker 1 (00:39):
This is the watchdog Wall Streets.
Speaker 3 (00:45):
All right, Welcome, everybody, Welcome. It is the Watchdog on
Wall Street Show. And it's gonna be one of those
days we are loaded loaded. There is a lot that's
going on in the country, many things that we have
been talking about over the past three decades, warning about.
(01:05):
I've got some major concerns out of what's taken place
in Washington, d C. We're going to talk about all
of that as well. You know what I want to
get started today. I do because I got been getting
some questions and some emails from people out there based
upon some of the things that they're hearing on the
business networks and some of the infolets being put out
(01:27):
by the too big to fail investment firms out there.
They've got themselves a new selling point. They've got themselves
a new trade. It's called the debasement trade. That's what
they're calling it, the debasement trade. How to go about
positioning your portfolio? And this is what the big firms,
and then now the smaller ones as well, the McDonald's ones,
(01:50):
you know, the ag Edwards, the well they're going exist
Edward Jones. Yeah, and all the little small mickey mouse
ones out there as well. They're all talking about debasement trade.
Where they where you guys been?
Speaker 2 (02:03):
Huh?
Speaker 3 (02:05):
Where have you been over the past three decade? That's
what I like to ask, quite frankly, because you know,
that's ridiculous some of the things that they're putting out
in regards to restructuring portfolios. You guys are real late,
man as usual. You're real late to the party. But
(02:25):
what's interesting is, and this is I get a kick
out of the how they rate analysts and how they
go about rating investment firms based upon their performance. It's
not when they make a call, it's just that they
go about making the call. The timing of when they
say things, it doesn't really matter to them what am
I talking about? Okay, For the past three decades, all
(02:48):
of these major firms out there have been telling you
that you need to have a sixty forty portfolio. Anyone
who has had a sixty polio sixty to forty portfolio,
you know as well.
Speaker 2 (02:59):
As I do.
Speaker 3 (03:01):
You've underperformed bigly over the past thirty years. Our position,
our position at Markowski Investments has been pretty straightforward. The government,
our government has been printing money. I've written numerous columns
(03:25):
about it. I've lamented it, I've warned about it. It
continues to print and borrow money to the tune where
we are now over thirty seven trillion dollars in debt
debasement the past thirty years, you've lost fifty four percent
of your buying power. Fifty four percent of your buying power.
(03:52):
The current the current Republican plan adds two trillion dollars
trillion dollars to the debt. The Democrat plant adds three
trillion dollars. So we're not heading in the right direction.
I'll talk more about that later. But all of a sudden,
(04:12):
all the big firms out there say, oh, you know, yeah,
maybe you gotta have twenty percent in gold. Maybe you
got a thirty percent in gold a basement trade. And
I kind of laugh at them, because, yeah, you guys
are a little late, aren't you.
Speaker 2 (04:29):
You're a little late to this thing.
Speaker 3 (04:31):
Not to mention the fact what they're advising, in my opinion,
is dangerous. Dangerous commodities should always play a part of
your portfolio always. And again I am not particular to
one commodity or another. Gold, for one, to me, has
(04:55):
less uses than other things like uranium and oil and
their things. And again they can be volatile all the time.
Well you can see the volatility in oil. They need
to make up a part of your portfolio. Where they
have missed it, missed it over the past three decades
is this over reliance on bonds and not enough in equities.
(05:20):
Now they are screaming right now about this debasement trade.
And we've seen the price of gold skyrocket. But let
me ask you a question, what about the bond market
in of itself?
Speaker 2 (05:34):
Think about that.
Speaker 3 (05:37):
You think about the long end yields. The long end
yields here in the United States have augh they've held
on pretty well, they really have. Now you've seen the
opposite in countries like Japan. France just lost another prime minister.
(05:59):
They've got issues there. Without a doubt. The dollar has
gotten wrecked this year. It has, but it didn't fall
off a cliff. We lost about ten percent, which is
a major move over a short period of time. But
you take a look around the globe and we can
recoup some of that. I've talked about this before. As
(06:23):
far as the United States is concerned, we are despite
our fiscal situation, we are the nicest house in a
very bad neighborhood. That's the reality, the nicest house in
a very very bad neighborhood. Central banks around the globe,
(06:44):
they've been doing this slowly but surely for some time.
They are diversifying their assets. They are buying more gold
what we would be looking at right now. You don't
want to continue to load up, keep back.
Speaker 2 (07:02):
Up the doctor, load up on gold.
Speaker 3 (07:04):
You know, maybe, just maybe you might want to start
looking at gold miners.
Speaker 2 (07:11):
Gold miners are able.
Speaker 3 (07:13):
You know, they've got break even points when it comes
to their extraction costs. Well, guess what, they're going to
be a little bit more profitable. They're going to be
more profitable they can add more supply to the market
based upon where the price of gold is. Happens with
any commodity. Same thing with oil, okay, certain wells, fracking costs, Okay,
(07:38):
what is the break even point? Is it worth to
extracting oil? Is it worth extracting gold? Well, it depends
on what the price is. And if we're expecting to
have an elevated level of gold for a period of time, well, yeah,
the miners just might do pretty well the debasement trade.
That's their latest selling point. And be very very careful
(08:03):
at what they're preaching, because they have been wrong for
the past thirty years. We've talked about our situation here
in the United States. I talked about it in terms
of stagflation. And again, whenever you use the word stagflation,
(08:23):
everyone looks to the nineteen seventies and thinks it's going
to be just like the nineteen seventies.
Speaker 2 (08:31):
It's not.
Speaker 3 (08:31):
It's a different world from the nineteen seventies, a much
much different world now. Stagflation means what we're not growing
as quickly, and people will point to GDP. Wow, look
at those GDP numbers, they're extraordinary.
Speaker 2 (08:49):
Oh my god.
Speaker 3 (08:50):
The economy's going like gangbusters. It's everything is awesome out there.
Just ask the folks at Fox Business in Fox News
and Larry Kudlow, hold on, hold on, Okay, we're very realistic.
Okay again, I deal with reality and the terrain. Okay,
the people on TV deal with nonsense and bluster. The
(09:16):
take a look at the A take a look at
tech and AI, which has done very very well for US. Now,
the hundreds and hundreds of billions of dollars that companies
are investing in a I account for wait for it,
a forty percent share of GDP growth this year. And
(09:42):
some could argue that that forty percent share is could
be low because it doesn't fully capture the entire AI spend,
so it could be even higher. Quite frankly, again, you
got to take a look at what goes, what's involved
with building some of these data centers, and you know,
(10:03):
cooling towers and air can just is a myriad of
different things. AI companies and AI related companies talk about
the stock market have accounted for eighty percent, eighty percent
of the gains in US stocks so far in twenty
(10:24):
twenty five. Now, this AI, this AI boom, it's sucking.
Speaker 2 (10:33):
Money from the entire globe.
Speaker 3 (10:37):
It is, it is sucking money from the entire globe
because we're it pretty much.
Speaker 2 (10:45):
Yeah, China, yep.
Speaker 3 (10:46):
They got a couple spots there where you know, they're
drawing in a little bit of money, but the world knows, okay, gee,
we got to be investing in this. So they send
money here and they're sending it like gangbusters into these companies.
They have to be involved. But what they're also doing.
What they're also doing is they're hedging themselves by buying gold.
(11:11):
They're investing in the United States in in a very
very strong matter, in tech in AI. But they're getting
They're also concerned about the fiscal situation here in the
United States, and rightfully so. And that's where a lot
of money is going into gold and driving the price
(11:32):
up as well. Again, it involves people. One of it
has to do with trust. Money is leaving assets that
depend on trust.
Speaker 2 (11:49):
It is is moving into other things.
Speaker 3 (11:54):
People trust Apple in Nvidia, and I've talked about this
for a years, well invest in the United States by
government bonds.
Speaker 2 (12:04):
What I mean, I don't get it.
Speaker 3 (12:07):
They trust Apple, they trust in Vidia, they trust Microsoft
more than they do the US government or the US dollar.
So other countries they're in they're investing here in the
United States. But ah, you know, we got to be
a little bit careful. We want to be We want
a lot of exposure to America, we want a lot
(12:31):
of exposure to American companies, but we gotta be careful
here because man o man, did you see that that
US dollar drop by ten percent this year? See Ken
Griffin talked about this this past week. You know, confidence
in the United States it's changing to some degree. And
(12:55):
part of this, again has to do with gold. You
take a look at the overall economic picture here in
the United States, the job's number, Okay, we didn't get
a job's number because of the government shutdown. If you
take a look at the alternative data, which I always
look at quite frankly, no bueno, okay, more and more
(13:19):
seeing signs of rising unemployment, slowing job growth, in various
different metrics of customer data, basically other companies. There's small
businesses out there, they're interviewing them. Overall US job growth
slid in September from an already weak official reading in August.
Labor market tightness. Every report that I see all these
(13:41):
eternative ones, not the government ones, and we don't even
know what the government says because.
Speaker 2 (13:44):
Of the shutdown. Not good.
Speaker 3 (13:48):
Chapter seven individual bankruptcy filings are up fifteen percent for
the first nine months of twenty twenty five.
Speaker 2 (13:58):
This is an issue. This is an issue.
Speaker 3 (14:02):
And this is where I try to explain to you,
is that government numbers that they put out there, they
can be deceiving in regards to what's really happening on
the ground here in the United States. Talk to various
different mid level restaurants and seeing people are pairing back,
(14:22):
They're not spending as much anymore, They're concerned.
Speaker 2 (14:27):
Okay, this is the reality.
Speaker 3 (14:29):
Yeah, we could have very high GDP growth and we
can jump up and down and say that we're awesome,
but everything is not awesome under the service. And again
I don't like saying this, Okay, I don't like reporting
reporting on this. Whenever I report on reality, I often
you know, Ah, don't like Trump Trump derangement syndrome. I
(14:52):
don't have Trump derangement syndrome. I'm here to tell you
the truth. Okay, this is what's going on. This is
what needs to be dealt with. The big firms out there,
they're gonna push in various different directions. They're gonna talk
about debasement.
Speaker 2 (15:09):
Again.
Speaker 3 (15:10):
We've had a strategy that's been consistent. It works for decades,
for decades. We're not trying to create a new marketing
gimmick okay to bring people in this because that's what
they do again and again and again. Make sure your
portfolio is positioned properly. If not, again, you're gonna listen
(15:35):
to those you know, wizards.
Speaker 2 (15:37):
Of smart that have been wrong for three decades. Well,
then you know what your perform. You're gonna underperform. Eh.
Speaker 3 (15:44):
Like I said, bigly, We're here to help you. What
I invite each and every one of you to do. Okay,
take advantage, take advantage. This has never been offering this
for for twenty five years. Here the program. We open
this up to everybody. Sign up free consultation with us
(16:05):
and our personal CFO program. Get to our website watchdog
on Wallstreet dot com. Sign up for that personal CFO program,
sign up for my podcast. Okay, every single day doing
various different topics. You're gonna be abreast of what's going on,
all sorts of great stuff. And you know what, do
your homework on Markowski Investments and see how we have
(16:29):
outperformed everybody over the past three decades. Watchdog on Wallstreet
dot com. Watchdog on Wallstreet dot com.
Speaker 2 (16:38):
Is our site. Take advantage.
Speaker 3 (16:40):
We have a twenty four hour day help hotline eight
hundred four seven to one fifty nine eighty four. That's
Watchdog on Wallstreet dot com. Or give us a call
eight hundred four seven one fifty nine eighty four. We'll
be back.
Speaker 1 (17:00):
Yeah, bringing America financial freedom one listener at a time.
You're listening to the Watchdog on Wall Street with Chris Markowski.
Speaker 3 (17:19):
Everybody, it is the Watchdog on Wall Street show, and
I gotta go over this.
Speaker 2 (17:26):
Markowski Investments. What we do here very straightforward.
Speaker 3 (17:30):
There's no bells, there's no whistles, and there's no velvet rope.
Another major investment firm caters to uh wealthy people. Well,
they want to even step it up, and they're they're
basically tailing all of their clients that are not worthy.
(17:53):
These are ones that you know, just have a few
million dollars with them there they're pushing them off. It's
basically a call center. They don't want to even deal
with them anymore. And you know, I'm you know, we
sure to listen to you, and I'm getting the phone
calls and the accounts are rolling in.
Speaker 2 (18:11):
We don't do that here. We never have it.
Speaker 3 (18:17):
When I first started in this business, I was disgusted.
I was discussed.
Speaker 2 (18:22):
I was this guy.
Speaker 3 (18:22):
I remember Merrill Lynch to taking all of their clients.
I forget it was this again over three decades ago.
Speaker 2 (18:29):
I don't know.
Speaker 3 (18:29):
It was like sub five hundred thousand. There you go,
You're going to some call center. And then they started
penalizing brokers and advisors at firm, saying well, hey, listen,
if you've got these smaller clients, guess what, we're not
going to pay you. We're not going to pay you
out on the commissions that you're generating on them. So
there'd be no reason for those brokers to even service
(18:51):
those clients. This is how Wall Street operates. Okay, it's
not how we operate. It's not how it work works here.
You know the thing as well, I guess kind of funny, get.
Speaker 2 (19:06):
People, you know, kidding me with a little bit.
Speaker 3 (19:08):
They got some of these high and I think at
high end again, not like they're bad firms. They deal
with super wealthy, but they got a lot of bills
and whistles and gimmicks and we don't have any of that.
You know, one of the one of our competitors out
there is now offering uh private jet service discounted rates
(19:29):
private and another one art collect You know we're gonna
deal with your art collection and help you buy art
and store art. Uh No, no, we don't. We don't
do that here. Okay, Sorry, let me ask you a question.
You go to your I don't know. You gotta see
a surgeon, you gotta go to your orthopedic surgeon.
Speaker 2 (19:53):
Do you care if you offer some sort of private
jet service.
Speaker 3 (19:57):
No, it's not who we are. It's not who we are.
We we're here to do one thing and one thing only.
We're here to be your personal CFO. We're here to
manage your portfolio. We're here to help you with your accounting.
We're here to help you with your legal Okay. We're
not here to go golfing. Okay, we don't have the time.
Speaker 2 (20:21):
We don't have the time.
Speaker 3 (20:22):
Watchdog on Wallstreet dot com. Watchdog on Wall street dot
com is our site. Sign up for our personal CFO program.
Don't go anywhere, We'll be.
Speaker 1 (20:31):
Back right, don't do the buddy. You're listening to the
Watchdog on Wall Street. Don't the taking Wall Streets liars,
(21:02):
crooks and cheeks out behind the woodshed. You're listening to
the Watchdog on Wall Streets.
Speaker 3 (21:11):
All right, I guess classic alternative day today here at.
Speaker 2 (21:15):
The Watchdog on Wall Streets Shore we go.
Speaker 3 (21:17):
From Oingo Boingo to Susie and the band Cheese again,
without a doubt, hands down, greatest bumper music in all
of Talk Rado never never had anything like it. Sorry,
just that simple. Anyway, welcome back. I just found this out.
(21:37):
I talked about a mentor of mine, Jonathan Clements. It
was a couple of weeks ago on the program who passed.
He's a great personal finance column way way back in
the day at the Wall Street Journal.
Speaker 2 (21:50):
I learned a lot from him.
Speaker 3 (21:52):
One of the things that we've also talked about here
on the program, and it's served served me well here
on this show and also trying to trying to understand
understand investors and the mistakes that they make, is I
follow a lot of behavioral economists over the years. Talked
(22:16):
about Daniel Konneman another one as gentleman that we've talked
about here on the program. Richard Taylor, he won the
Nobel Prize I think it was in twenty seventeen. He
put out a book very early in my career entitled
The Winner's Curse, and they're actually re releasing it right now.
Speaker 2 (22:40):
They're re releasing the book.
Speaker 3 (22:42):
He's doing it with another behavioral economist, alex Imus, redoing
the book at this point in time. And Jason's Wig
at the Wall Street Journal, who does a very very
good job with his intelligent Investor column and his modus
operendi is very very similar to what I do, okay,
(23:03):
trying to figure out why smart people do stupid things
with their money. And again, you know, Wall Street knows
that smart people do stupid things with their money. They
used to call it back when I was working at
the big firms. They go after doctors, dumb doctor deals,
they used to call them. They'll they'll buy into anything.
(23:26):
The question is why do people do dumb things with
their money? And what I've learned, what I've learned from Connoman,
what I've learned from Failure and many others, is that
people are not wired, probably to be very good investors.
They make irrational decisions when it comes to money. You know,
(23:51):
some of the things like I talked about, you know,
relying on relying on, you know, investment products in their
portfolio that are just solely about yields and not about
capital appreciation and high for one, quite frankly, compounding is
the royal road to riches. But you can also compound
(24:13):
based upon having capital appreciation and taking profits and rotating assets.
Wall Street hasn't done that for a very long period
of time. Again, it's way too much work for them anyway,
Another one, another one, and again in this interview is
why ask Stanley's we all hate to lose money, and
(24:37):
being reminded of our short term losses can distract us
from a pursuit of long term gains.
Speaker 2 (24:43):
What are the.
Speaker 3 (24:44):
Likely effects that I love this question because we talked
about this, the likely effects of Robinhood and other brokerage
apps that provide continuous pricing updates as well as streaming alerts, notifications,
push notifications, all this stuff. We knew this, We were approached.
(25:06):
I was approached. This is actually before robin Hood. You know,
you guys have got to do a trading app. It's great,
You've got a platform. You've got a national radio show.
This is right in line with you. And I said no,
I said, I'm not going to do this again. Would
have been great for my bottom line. But you know,
(25:27):
I gotta live with myself. Okay, Yeah, that line by
Martin Sheen telling his son Bud Fox and Wall Street.
You know, I don't go to bed with no horror.
I'll wake up with no heart. I don't know how
you do it, but I know how you live with yourself.
Speaker 2 (25:42):
Okay.
Speaker 3 (25:44):
There's good money and there's bad money. Let's just leave
it at that. What they're doing, quite frankly, is bad money.
I knew, okay that they had to. They had to
exploit behavioral biases I hope be a self control problem,
lost chasing, the preference for lottery like stocks. They do
(26:05):
all this to get people to invest in, oftentimes very
sophisticated financial products that they don't understand. Imus. Actually he
points this out. He says, so they did a major study.
One of the most popular financial products on Robinhood are
(26:26):
weekly options. Weekly options, which have, for all intents and purposes,
lottery like characteristics. You know, it's funny about those options too, Okay.
The bid to ask the spread. If you're not familiar
what this is. This is the difference between what you
can buy it at and what you can sell it at.
Speaker 2 (26:48):
That's how all of the boiler room companies made a fortune.
The spread.
Speaker 3 (26:56):
They didn't tell you about it, and they would actually
tell you, hey, we're not even charging you commission on
this trade. Meanwhile, they were pocketing the spread. That's how
Robinhood makes their money. Their research has estimated that investors
have lost over the past two years upwards of two
(27:16):
billion dollars on those trades.
Speaker 2 (27:19):
And it's more than that.
Speaker 3 (27:20):
You want to know much Robinhood has made on those trades,
six point five billion dollars. Like I said, there's no
such thing as a free trading app.
Speaker 2 (27:33):
It doesn't exist anyway.
Speaker 3 (27:38):
A little bit more on this, talking about kind of
like headshrinking and the market's behavioral problems that investors have.
We gonna take quick break right here. Watchdog on Wallstreet
dot com. Watchdog on wallstreet dot com again is our site.
Become a part of the Watchdog on Wall Street family,
our personal CFO program, podcast, newsletter, all sorts of great stuff.
Speaker 2 (27:58):
Watchdog on Wallstreet dot Com will be.
Speaker 1 (28:16):
This is the Watchdog on Wall Street.
Speaker 2 (28:29):
Welcome back. What a back, kiddos.
Speaker 3 (28:34):
It is the Watchdog on Wall Street Show. Always honored
to have you tuned into the big program. Okay, another one,
another one that uh that Professor Taylor talks about in
regards to the rule, how reluctant, reluctant investors are to sell,
(28:55):
to sell, to understand that you made a mistake. Again,
this is something that I with all the time, deal
with all the time. We get portfolios in from all
sorts of firms and you take a look at some
of these positions they have, and people are still kind of,
you know, root and form like it's some sort of
like PG. Thirteen movie where they're rooting for the kid
(29:15):
to make that comeback. It doesn't work that way. Again,
people react differently to realized outcomes compared to paper gains
and losses. Okay, all sorts of interesting things happen. Okay,
(29:36):
this is one of the big ones. And and Taylor
they mentioned this. I've talked about this for years, the
disposition effect. They call it, the greater willingness to sell
winners than losers.
Speaker 2 (29:51):
I wrote about this. This is before the radio show.
Speaker 3 (29:53):
I wrote about this back in the nineteen nineties, and
there was a professor, Terrence Odean that did a study
on this and this is back way back, wayback machine
where there was like E Trade and Ameritrade and DLJ
Direct and he studied, he studied the outcomes of all
these investors and what they were doing, and they more
(30:13):
often than not, they were always selling the winners rather
than their losers. Another thing that they do is, hey,
what's chase losers? That's a great idea. You know, I'm
in this hole here, Yeah, how do I get out
of this hole?
Speaker 1 (30:26):
Oh?
Speaker 3 (30:26):
I know, I'll keep digging. I keep digging because they
think that they're going to get you know, back back
in the black.
Speaker 2 (30:36):
Okay.
Speaker 3 (30:38):
No, no, no, when you're in your hole, you stop digging.
Speaker 2 (30:44):
Okay.
Speaker 3 (30:45):
One of the things that you need to do is
you need to slow down your investment process.
Speaker 2 (30:52):
You need to slow down.
Speaker 3 (30:54):
You need to stop looking at things in such a
short term timeframe. Today, tomorrow, next week, next month.
Speaker 2 (31:03):
You do that, you slow everything down.
Speaker 3 (31:06):
You see the wider picture, the proverbly forest for the trees,
You're gonna be in a much much better position.
Speaker 1 (31:13):
You know.
Speaker 3 (31:13):
I'm gonna talk a little bit more about that when
we get back a lot more. We gotta go over
on the program. Watchdog on Wallstreet dot com is our
sight again, our personal CFO program, our podcast, our newsletter,
all sorts of great stuff. Watchdog on Wallstreet dot com
or give us a call eight hundred four seven eighty four.
Speaker 1 (31:38):
Jusy. Chris Barkowski is the Watchdog on Wall Street, the
(32:02):
only man who is taking on the Wall Street establishment.
You are listening to the Watchdog in Wall Street with
Chris Markowski.
Speaker 2 (32:11):
Yeah, a little songs of my youth here at church.
Welcome back everybody.
Speaker 3 (32:16):
It is the Watchdog on Wall Street show. Slowing down
the process, slowing down the process. I'm gonna go back,
and to me, it was it was a huge mistake.
And you know, I saw what was going to happen
profitable for the people that were involved. Uh, the New
(32:36):
York Stock e Shane asked, they used to be nonprofits.
They used to be nonprofits. And I remember when clients
would come to visit us when I had our New
York City office. We no longer have that office anymore.
It's not necessary, Uh go down, take them down to
the floor of the New York Stock Exchange and you know,
(32:57):
speak with specialists see how things used to operate, and
they knew back then. I remember the last time I
was there, when they had specialists, they saw, they knew
what was coming, they knew that they were going to
go by the wayside. And now it's all high speed
electronic trading, fast as it can be. You can trade
twenty four hours a day. It's all the greatest to
getting tire world. And they sell this to you like
it's it's something that's prudent, something that's smart. I think
(33:23):
I might have mentioned this before. I rarely I am.
I am in the business. I own a registered investment advisory.
We have offices all over the country, clients all over
the world. My portfolio, I might look at it once
a year. I might look at my portfolio once a year.
(33:51):
I don't trade. I know exactly what I'm doing. You
take a look at what we done, what we've done
for our clients. And I made that last week, and
go back again. We archive all of these shows. They're
up on our podcasts. I am not saying this with
(34:12):
any arrogance at all. Okay, our philosophy, our strategy, how
we do things, we didn't vet. We didn't make it up.
It made this perfectly clear. This is this timeless wisdom.
Timeless wisdom. That's what it means to be like kind
(34:34):
of a true conservative, understanding certain rules of the universe,
truths of life.
Speaker 2 (34:44):
Yeah, I get asked, not not anymore.
Speaker 3 (34:47):
Used to used to get asked all the time is
by affiliates.
Speaker 2 (34:52):
Hey, Chris, you know it'd be great.
Speaker 3 (34:54):
You know if you could do the the stock market
rap for us every single day, quick recording. You could
tell us what the markets did at four o'clock and
we'll put it on a show, we'll promote the show.
My answer, no, no, I'm not being rude. I apologize,
but I don't believe in that. I don't at four o'clock.
(35:16):
I'm ninety percent of the time, I don't know what
the market's done over the course of the day. I
don't follow it like that. It's not important to me.
And that's the problem. Conventional wisdom is poison. What they
teach people about the markets and what they need to do,
(35:37):
or what they should do, or what they can do.
It's ridiculous. I'll give you another example. This as proud
of my son Steven, he was just several years ago.
It was he It was when he was a sophomore
in college. He's gone, he's done now. He got picked.
He got picked to be managed part of the endowment
(35:59):
for or Providence College where he went to school, and
he had apply, had to do an interview, all these things.
It was kind of a club that they had there.
And you know again he's you know, started asking me
questions and I said, well, you've got to make sure.
You've got to make sure that you guys that percentage
of portfolio running. You're not doing it to show off
(36:20):
over a quarter. This is the long this is long
term outlook. What does this money use for? And invest
it appropriately based upon that. You see this all the time.
They're like, oh, look at a stock market club or
these kids from this high school and they have they
have a you know, a small portfolio, that pretend portfolio
that they're there to manage, and while look at how
(36:41):
they did.
Speaker 2 (36:42):
What are you teaching those kids.
Speaker 3 (36:43):
You're teaching those kids to chase returns over a quarter.
Speaker 2 (36:50):
That's not right.
Speaker 3 (36:53):
That's the wrong thing to be teaching them.
Speaker 2 (36:59):
People be honest with you. Okay, you want to mine,
I don't look at my portfolio barely.
Speaker 3 (37:07):
Ever, Well, you know what I don't manage it. That's
my brother, Matthew's job, that's my mother. I don't man
he knows exactly what we're doing. Hey, why do I
need he? That's what he does, that's what he specializes in,
and that's quite frankly, that's what you need to do.
(37:28):
That's what you need to do. You need to delegate
the entire process to someone else. You've obviously got to
find someone that's actually competent, that's not gonna sell you
a bill of goods or oh gee whiz ohe the
firm is talking about a debasement trade right now, Well,
we better start moving everything around. Every bit of data
(37:49):
out there, okay, and you might think that you're different, okay,
everything Richard Taylor talks about this. He says, every bit
of data suggests that very very few individual investors should
be trading individual securities. Now, if most mutual funds, most
mutual funds cannot do better than their benchmark, you think
(38:14):
you can do better? Listen, I get it, okay, Uh,
I much rather have people take a small portion of
their money.
Speaker 2 (38:26):
You want to make it a hobby. Treat it that way.
Speaker 3 (38:30):
Treat you take a small portion of money that you
want to you want to speculate with Hey, it's better
doing that than you know, investing in some stupid or
putting money in some stupid gambling app. But understand that
what you're doing is speculation and understand that you could
lose it all and you know you.
Speaker 2 (38:47):
Lose it, you lose it.
Speaker 3 (38:51):
Yeah, failer actually says, don't risk more than you would
on a new e bike or a set of golf clubs.
For crying out loud, Well, it's different for everybody based
upon their unique situation.
Speaker 2 (39:01):
You can't let risk lead to ruin Again.
Speaker 3 (39:07):
We invite each and everyone to become a part of
our family at Markowski Investments. As I mentioned before, Okay,
there's no velvet rope here. We don't have a bouncer.
I don't got ten million dollars. Can't work with the markowskis, No,
we don't do that. Watchdog on Wallstreet dot com is
our site. Take advantage our personal CFO program.
Speaker 2 (39:27):
We'll be back like
Speaker 1 (39:32):
You're listening to the watch Dog on Wall Street
Well, no and author, investment banker, consumer advocate, analyst trader
Chris Markowski is the watchdog on the Wall Street. Do
you want to answer exposing the lies and myths that
the big brokerage firms, the mainstream press, and the government
are pushing to keep Americans away from financial freedom.
Speaker 2 (00:28):
You can't handle the true.
Speaker 1 (00:30):
Bringing America the truth about what really happens in the
financial world.
Speaker 3 (00:35):
Ladies and gentlemen, We're not here to indulge in fantasy,
but in political and economic reality.
Speaker 1 (00:39):
This is the watchdog Wall Streets.
Speaker 3 (00:45):
All right, Welcome, everybody, Welcome. It is the Watchdog on
Wall Street Show. And it's gonna be one of those
days we are loaded loaded. There is a lot that's
going on in the country, many things that we have
been talking about over the past three decades, warning about.
(01:05):
I've got some major concerns out of what's taken place
in Washington, d C. We're going to talk about all
of that as well. You know what I want to
get started today. I do because I got been getting
some questions and some emails from people out there based
upon some of the things that they're hearing on the
business networks and some of the infolets being put out
(01:27):
by the too big to fail investment firms out there.
They've got themselves a new selling point. They've got themselves
a new trade. It's called the debasement trade. That's what
they're calling it, the debasement trade. How to go about
positioning your portfolio? And this is what the big firms,
and then now the smaller ones as well, the McDonald's ones,
(01:50):
you know, the ag Edwards, the well they're going exist
Edward Jones. Yeah, and all the little small mickey mouse
ones out there as well. They're all talking about debasement trade.
Where they where you guys been?
Speaker 2 (02:03):
Huh?
Speaker 3 (02:05):
Where have you been over the past three decade? That's
what I like to ask, quite frankly, because you know,
that's ridiculous some of the things that they're putting out
in regards to restructuring portfolios. You guys are real late,
man as usual. You're real late to the party. But
(02:25):
what's interesting is, and this is I get a kick
out of the how they rate analysts and how they
go about rating investment firms based upon their performance. It's
not when they make a call, it's just that they
go about making the call. The timing of when they
say things, it doesn't really matter to them what am
I talking about? Okay, For the past three decades, all
(02:48):
of these major firms out there have been telling you
that you need to have a sixty forty portfolio. Anyone
who has had a sixty polio sixty to forty portfolio,
you know as well.
Speaker 2 (02:59):
As I do.
Speaker 3 (03:01):
You've underperformed bigly over the past thirty years. Our position,
our position at Markowski Investments has been pretty straightforward. The government,
our government has been printing money. I've written numerous columns
(03:25):
about it. I've lamented it, I've warned about it. It
continues to print and borrow money to the tune where
we are now over thirty seven trillion dollars in debt
debasement the past thirty years, you've lost fifty four percent
of your buying power. Fifty four percent of your buying power.
(03:52):
The current the current Republican plan adds two trillion dollars
trillion dollars to the debt. The Democrat plant adds three
trillion dollars. So we're not heading in the right direction.
I'll talk more about that later. But all of a sudden,
(04:12):
all the big firms out there say, oh, you know, yeah,
maybe you gotta have twenty percent in gold. Maybe you
got a thirty percent in gold a basement trade. And
I kind of laugh at them, because, yeah, you guys
are a little late, aren't you.
Speaker 2 (04:29):
You're a little late to this thing.
Speaker 3 (04:31):
Not to mention the fact what they're advising, in my opinion,
is dangerous. Dangerous commodities should always play a part of
your portfolio always. And again I am not particular to
one commodity or another. Gold, for one, to me, has
(04:55):
less uses than other things like uranium and oil and
their things. And again they can be volatile all the time.
Well you can see the volatility in oil. They need
to make up a part of your portfolio. Where they
have missed it, missed it over the past three decades
is this over reliance on bonds and not enough in equities.
(05:20):
Now they are screaming right now about this debasement trade.
And we've seen the price of gold skyrocket. But let
me ask you a question, what about the bond market
in of itself?
Speaker 2 (05:34):
Think about that.
Speaker 3 (05:37):
You think about the long end yields. The long end
yields here in the United States have augh they've held
on pretty well, they really have. Now you've seen the
opposite in countries like Japan. France just lost another prime minister.
(05:59):
They've got issues there. Without a doubt. The dollar has
gotten wrecked this year. It has, but it didn't fall
off a cliff. We lost about ten percent, which is
a major move over a short period of time. But
you take a look around the globe and we can
recoup some of that. I've talked about this before. As
(06:23):
far as the United States is concerned, we are despite
our fiscal situation, we are the nicest house in a
very bad neighborhood. That's the reality, the nicest house in
a very very bad neighborhood. Central banks around the globe,
(06:44):
they've been doing this slowly but surely for some time.
They are diversifying their assets. They are buying more gold
what we would be looking at right now. You don't
want to continue to load up, keep back.
Speaker 2 (07:02):
Up the doctor, load up on gold.
Speaker 3 (07:04):
You know, maybe, just maybe you might want to start
looking at gold miners.
Speaker 2 (07:11):
Gold miners are able.
Speaker 3 (07:13):
You know, they've got break even points when it comes
to their extraction costs. Well, guess what, they're going to
be a little bit more profitable. They're going to be
more profitable they can add more supply to the market
based upon where the price of gold is. Happens with
any commodity. Same thing with oil, okay, certain wells, fracking costs, Okay,
(07:38):
what is the break even point? Is it worth to
extracting oil? Is it worth extracting gold? Well, it depends
on what the price is. And if we're expecting to
have an elevated level of gold for a period of time, well, yeah,
the miners just might do pretty well the debasement trade.
That's their latest selling point. And be very very careful
(08:03):
at what they're preaching, because they have been wrong for
the past thirty years. We've talked about our situation here
in the United States. I talked about it in terms
of stagflation. And again, whenever you use the word stagflation,
(08:23):
everyone looks to the nineteen seventies and thinks it's going
to be just like the nineteen seventies.
Speaker 2 (08:31):
It's not.
Speaker 3 (08:31):
It's a different world from the nineteen seventies, a much
much different world now. Stagflation means what we're not growing
as quickly, and people will point to GDP. Wow, look
at those GDP numbers, they're extraordinary.
Speaker 2 (08:49):
Oh my god.
Speaker 3 (08:50):
The economy's going like gangbusters. It's everything is awesome out there.
Just ask the folks at Fox Business in Fox News
and Larry Kudlow, hold on, hold on, Okay, we're very realistic.
Okay again, I deal with reality and the terrain. Okay,
the people on TV deal with nonsense and bluster. The
(09:16):
take a look at the A take a look at
tech and AI, which has done very very well for US. Now,
the hundreds and hundreds of billions of dollars that companies
are investing in a I account for wait for it,
a forty percent share of GDP growth this year. And
(09:42):
some could argue that that forty percent share is could
be low because it doesn't fully capture the entire AI spend,
so it could be even higher. Quite frankly, again, you
got to take a look at what goes, what's involved
with building some of these data centers, and you know,
(10:03):
cooling towers and air can just is a myriad of
different things. AI companies and AI related companies talk about
the stock market have accounted for eighty percent, eighty percent
of the gains in US stocks so far in twenty
(10:24):
twenty five. Now, this AI, this AI boom, it's sucking.
Speaker 2 (10:33):
Money from the entire globe.
Speaker 3 (10:37):
It is, it is sucking money from the entire globe
because we're it pretty much.
Speaker 2 (10:45):
Yeah, China, yep.
Speaker 3 (10:46):
They got a couple spots there where you know, they're
drawing in a little bit of money, but the world knows, okay, gee,
we got to be investing in this. So they send
money here and they're sending it like gangbusters into these companies.
They have to be involved. But what they're also doing.
What they're also doing is they're hedging themselves by buying gold.
(11:11):
They're investing in the United States in in a very
very strong matter, in tech in AI. But they're getting
They're also concerned about the fiscal situation here in the
United States, and rightfully so. And that's where a lot
of money is going into gold and driving the price
(11:32):
up as well. Again, it involves people. One of it
has to do with trust. Money is leaving assets that
depend on trust.
Speaker 2 (11:49):
It is is moving into other things.
Speaker 3 (11:54):
People trust Apple in Nvidia, and I've talked about this
for a years, well invest in the United States by
government bonds.
Speaker 2 (12:04):
What I mean, I don't get it.
Speaker 3 (12:07):
They trust Apple, they trust in Vidia, they trust Microsoft
more than they do the US government or the US dollar.
So other countries they're in they're investing here in the
United States. But ah, you know, we got to be
a little bit careful. We want to be We want
a lot of exposure to America, we want a lot
(12:31):
of exposure to American companies, but we gotta be careful
here because man o man, did you see that that
US dollar drop by ten percent this year? See Ken
Griffin talked about this this past week. You know, confidence
in the United States it's changing to some degree. And
(12:55):
part of this, again has to do with gold. You
take a look at the overall economic picture here in
the United States, the job's number, Okay, we didn't get
a job's number because of the government shutdown. If you
take a look at the alternative data, which I always
look at quite frankly, no bueno, okay, more and more
(13:19):
seeing signs of rising unemployment, slowing job growth, in various
different metrics of customer data, basically other companies. There's small
businesses out there, they're interviewing them. Overall US job growth
slid in September from an already weak official reading in August.
Labor market tightness. Every report that I see all these
(13:41):
eternative ones, not the government ones, and we don't even
know what the government says because.
Speaker 2 (13:44):
Of the shutdown. Not good.
Speaker 3 (13:48):
Chapter seven individual bankruptcy filings are up fifteen percent for
the first nine months of twenty twenty five.
Speaker 2 (13:58):
This is an issue. This is an issue.
Speaker 3 (14:02):
And this is where I try to explain to you,
is that government numbers that they put out there, they
can be deceiving in regards to what's really happening on
the ground here in the United States. Talk to various
different mid level restaurants and seeing people are pairing back,
(14:22):
They're not spending as much anymore, They're concerned.
Speaker 2 (14:27):
Okay, this is the reality.
Speaker 3 (14:29):
Yeah, we could have very high GDP growth and we
can jump up and down and say that we're awesome,
but everything is not awesome under the service. And again
I don't like saying this, Okay, I don't like reporting
reporting on this. Whenever I report on reality, I often
you know, Ah, don't like Trump Trump derangement syndrome. I
(14:52):
don't have Trump derangement syndrome. I'm here to tell you
the truth. Okay, this is what's going on. This is
what needs to be dealt with. The big firms out there,
they're gonna push in various different directions. They're gonna talk
about debasement.
Speaker 2 (15:09):
Again.
Speaker 3 (15:10):
We've had a strategy that's been consistent. It works for decades,
for decades. We're not trying to create a new marketing
gimmick okay to bring people in this because that's what
they do again and again and again. Make sure your
portfolio is positioned properly. If not, again, you're gonna listen
(15:35):
to those you know, wizards.
Speaker 2 (15:37):
Of smart that have been wrong for three decades. Well,
then you know what your perform. You're gonna underperform. Eh.
Speaker 3 (15:44):
Like I said, bigly, We're here to help you. What
I invite each and every one of you to do. Okay,
take advantage, take advantage. This has never been offering this
for for twenty five years. Here the program. We open
this up to everybody. Sign up free consultation with us
(16:05):
and our personal CFO program. Get to our website watchdog
on Wallstreet dot com. Sign up for that personal CFO program,
sign up for my podcast. Okay, every single day doing
various different topics. You're gonna be abreast of what's going on,
all sorts of great stuff. And you know what, do
your homework on Markowski Investments and see how we have
(16:29):
outperformed everybody over the past three decades. Watchdog on Wallstreet
dot com. Watchdog on Wallstreet dot com.
Speaker 2 (16:38):
Is our site. Take advantage.
Speaker 3 (16:40):
We have a twenty four hour day help hotline eight
hundred four seven to one fifty nine eighty four. That's
Watchdog on Wallstreet dot com. Or give us a call
eight hundred four seven one fifty nine eighty four. We'll
be back.
Speaker 1 (17:00):
Yeah, bringing America financial freedom one listener at a time.
You're listening to the Watchdog on Wall Street with Chris Markowski.
Speaker 3 (17:19):
Everybody, it is the Watchdog on Wall Street show, and
I gotta go over this.
Speaker 2 (17:26):
Markowski Investments. What we do here very straightforward.
Speaker 3 (17:30):
There's no bells, there's no whistles, and there's no velvet rope.
Another major investment firm caters to uh wealthy people. Well,
they want to even step it up, and they're they're
basically tailing all of their clients that are not worthy.
(17:53):
These are ones that you know, just have a few
million dollars with them there they're pushing them off. It's
basically a call center. They don't want to even deal
with them anymore. And you know, I'm you know, we
sure to listen to you, and I'm getting the phone
calls and the accounts are rolling in.
Speaker 2 (18:11):
We don't do that here. We never have it.
Speaker 3 (18:17):
When I first started in this business, I was disgusted.
I was discussed.
Speaker 2 (18:22):
I was this guy.
Speaker 3 (18:22):
I remember Merrill Lynch to taking all of their clients.
I forget it was this again over three decades ago.
Speaker 2 (18:29):
I don't know.
Speaker 3 (18:29):
It was like sub five hundred thousand. There you go,
You're going to some call center. And then they started
penalizing brokers and advisors at firm, saying well, hey, listen,
if you've got these smaller clients, guess what, we're not
going to pay you. We're not going to pay you
out on the commissions that you're generating on them. So
there'd be no reason for those brokers to even service
(18:51):
those clients. This is how Wall Street operates. Okay, it's
not how we operate. It's not how it work works here.
You know the thing as well, I guess kind of funny, get.
Speaker 2 (19:06):
People, you know, kidding me with a little bit.
Speaker 3 (19:08):
They got some of these high and I think at
high end again, not like they're bad firms. They deal
with super wealthy, but they got a lot of bills
and whistles and gimmicks and we don't have any of that.
You know, one of the one of our competitors out
there is now offering uh private jet service discounted rates
(19:29):
private and another one art collect You know we're gonna
deal with your art collection and help you buy art
and store art. Uh No, no, we don't. We don't
do that here. Okay, Sorry, let me ask you a question.
You go to your I don't know. You gotta see
a surgeon, you gotta go to your orthopedic surgeon.
Speaker 2 (19:53):
Do you care if you offer some sort of private
jet service.
Speaker 3 (19:57):
No, it's not who we are. It's not who we are.
We we're here to do one thing and one thing only.
We're here to be your personal CFO. We're here to
manage your portfolio. We're here to help you with your accounting.
We're here to help you with your legal Okay. We're
not here to go golfing. Okay, we don't have the time.
Speaker 2 (20:21):
We don't have the time.
Speaker 3 (20:22):
Watchdog on Wallstreet dot com. Watchdog on Wall street dot
com is our site. Sign up for our personal CFO program.
Don't go anywhere, We'll be.
Speaker 1 (20:31):
Back right, don't do the buddy. You're listening to the
Watchdog on Wall Street. Don't the taking Wall Streets liars,
(21:02):
crooks and cheeks out behind the woodshed. You're listening to
the Watchdog on Wall Streets.
Speaker 3 (21:11):
All right, I guess classic alternative day today here at.
Speaker 2 (21:15):
The Watchdog on Wall Streets Shore we go.
Speaker 3 (21:17):
From Oingo Boingo to Susie and the band Cheese again,
without a doubt, hands down, greatest bumper music in all
of Talk Rado never never had anything like it. Sorry,
just that simple. Anyway, welcome back. I just found this out.
(21:37):
I talked about a mentor of mine, Jonathan Clements. It
was a couple of weeks ago on the program who passed.
He's a great personal finance column way way back in
the day at the Wall Street Journal.
Speaker 2 (21:50):
I learned a lot from him.
Speaker 3 (21:52):
One of the things that we've also talked about here
on the program, and it's served served me well here
on this show and also trying to trying to understand
understand investors and the mistakes that they make, is I
follow a lot of behavioral economists over the years. Talked
(22:16):
about Daniel Konneman another one as gentleman that we've talked
about here on the program. Richard Taylor, he won the
Nobel Prize I think it was in twenty seventeen. He
put out a book very early in my career entitled
The Winner's Curse, and they're actually re releasing it right now.
Speaker 2 (22:40):
They're re releasing the book.
Speaker 3 (22:42):
He's doing it with another behavioral economist, alex Imus, redoing
the book at this point in time. And Jason's Wig
at the Wall Street Journal, who does a very very
good job with his intelligent Investor column and his modus
operendi is very very similar to what I do, okay,
(23:03):
trying to figure out why smart people do stupid things
with their money. And again, you know, Wall Street knows
that smart people do stupid things with their money. They
used to call it back when I was working at
the big firms. They go after doctors, dumb doctor deals,
they used to call them. They'll they'll buy into anything.
(23:26):
The question is why do people do dumb things with
their money? And what I've learned, what I've learned from Connoman,
what I've learned from Failure and many others, is that
people are not wired, probably to be very good investors.
They make irrational decisions when it comes to money. You know,
(23:51):
some of the things like I talked about, you know,
relying on relying on, you know, investment products in their
portfolio that are just solely about yields and not about
capital appreciation and high for one, quite frankly, compounding is
the royal road to riches. But you can also compound
(24:13):
based upon having capital appreciation and taking profits and rotating assets.
Wall Street hasn't done that for a very long period
of time. Again, it's way too much work for them anyway,
Another one, another one, and again in this interview is
why ask Stanley's we all hate to lose money, and
(24:37):
being reminded of our short term losses can distract us
from a pursuit of long term gains.
Speaker 2 (24:43):
What are the.
Speaker 3 (24:44):
Likely effects that I love this question because we talked
about this, the likely effects of Robinhood and other brokerage
apps that provide continuous pricing updates as well as streaming alerts, notifications,
push notifications, all this stuff. We knew this, We were approached.
(25:06):
I was approached. This is actually before robin Hood. You know,
you guys have got to do a trading app. It's great,
You've got a platform. You've got a national radio show.
This is right in line with you. And I said no,
I said, I'm not going to do this again. Would
have been great for my bottom line. But you know,
(25:27):
I gotta live with myself. Okay, Yeah, that line by
Martin Sheen telling his son Bud Fox and Wall Street.
You know, I don't go to bed with no horror.
I'll wake up with no heart. I don't know how
you do it, but I know how you live with yourself.
Speaker 2 (25:42):
Okay.
Speaker 3 (25:44):
There's good money and there's bad money. Let's just leave
it at that. What they're doing, quite frankly, is bad money.
I knew, okay that they had to. They had to
exploit behavioral biases I hope be a self control problem,
lost chasing, the preference for lottery like stocks. They do
(26:05):
all this to get people to invest in, oftentimes very
sophisticated financial products that they don't understand. Imus. Actually he
points this out. He says, so they did a major study.
One of the most popular financial products on Robinhood are
(26:26):
weekly options. Weekly options, which have, for all intents and purposes,
lottery like characteristics. You know, it's funny about those options too, Okay.
The bid to ask the spread. If you're not familiar
what this is. This is the difference between what you
can buy it at and what you can sell it at.
Speaker 2 (26:48):
That's how all of the boiler room companies made a fortune.
The spread.
Speaker 3 (26:56):
They didn't tell you about it, and they would actually
tell you, hey, we're not even charging you commission on
this trade. Meanwhile, they were pocketing the spread. That's how
Robinhood makes their money. Their research has estimated that investors
have lost over the past two years upwards of two
(27:16):
billion dollars on those trades.
Speaker 2 (27:19):
And it's more than that.
Speaker 3 (27:20):
You want to know much Robinhood has made on those trades,
six point five billion dollars. Like I said, there's no
such thing as a free trading app.
Speaker 2 (27:33):
It doesn't exist anyway.
Speaker 3 (27:38):
A little bit more on this, talking about kind of
like headshrinking and the market's behavioral problems that investors have.
We gonna take quick break right here. Watchdog on Wallstreet
dot com. Watchdog on wallstreet dot com again is our site.
Become a part of the Watchdog on Wall Street family,
our personal CFO program, podcast, newsletter, all sorts of great stuff.
Speaker 2 (27:58):
Watchdog on Wallstreet dot Com will be.
Speaker 1 (28:16):
This is the Watchdog on Wall Street.
Speaker 2 (28:29):
Welcome back. What a back, kiddos.
Speaker 3 (28:34):
It is the Watchdog on Wall Street Show. Always honored
to have you tuned into the big program. Okay, another one,
another one that uh that Professor Taylor talks about in
regards to the rule, how reluctant, reluctant investors are to sell,
(28:55):
to sell, to understand that you made a mistake. Again,
this is something that I with all the time, deal
with all the time. We get portfolios in from all
sorts of firms and you take a look at some
of these positions they have, and people are still kind of,
you know, root and form like it's some sort of
like PG. Thirteen movie where they're rooting for the kid
(29:15):
to make that comeback. It doesn't work that way. Again,
people react differently to realized outcomes compared to paper gains
and losses. Okay, all sorts of interesting things happen. Okay,
(29:36):
this is one of the big ones. And and Taylor
they mentioned this. I've talked about this for years, the
disposition effect. They call it, the greater willingness to sell
winners than losers.
Speaker 2 (29:51):
I wrote about this. This is before the radio show.
Speaker 3 (29:53):
I wrote about this back in the nineteen nineties, and
there was a professor, Terrence Odean that did a study
on this and this is back way back, wayback machine
where there was like E Trade and Ameritrade and DLJ
Direct and he studied, he studied the outcomes of all
these investors and what they were doing, and they more
(30:13):
often than not, they were always selling the winners rather
than their losers. Another thing that they do is, hey,
what's chase losers? That's a great idea. You know, I'm
in this hole here, Yeah, how do I get out
of this hole?
Speaker 1 (30:26):
Oh?
Speaker 3 (30:26):
I know, I'll keep digging. I keep digging because they
think that they're going to get you know, back back
in the black.
Speaker 2 (30:36):
Okay.
Speaker 3 (30:38):
No, no, no, when you're in your hole, you stop digging.
Speaker 2 (30:44):
Okay.
Speaker 3 (30:45):
One of the things that you need to do is
you need to slow down your investment process.
Speaker 2 (30:52):
You need to slow down.
Speaker 3 (30:54):
You need to stop looking at things in such a
short term timeframe. Today, tomorrow, next week, next month.
Speaker 2 (31:03):
You do that, you slow everything down.
Speaker 3 (31:06):
You see the wider picture, the proverbly forest for the trees,
You're gonna be in a much much better position.
Speaker 1 (31:13):
You know.
Speaker 3 (31:13):
I'm gonna talk a little bit more about that when
we get back a lot more. We gotta go over
on the program. Watchdog on Wallstreet dot com is our
sight again, our personal CFO program, our podcast, our newsletter,
all sorts of great stuff. Watchdog on Wallstreet dot com
or give us a call eight hundred four seven eighty four.
Speaker 1 (31:38):
Jusy. Chris Barkowski is the Watchdog on Wall Street, the
(32:02):
only man who is taking on the Wall Street establishment.
You are listening to the Watchdog in Wall Street with
Chris Markowski.
Speaker 2 (32:11):
Yeah, a little songs of my youth here at church.
Welcome back everybody.
Speaker 3 (32:16):
It is the Watchdog on Wall Street show. Slowing down
the process, slowing down the process. I'm gonna go back,
and to me, it was it was a huge mistake.
And you know, I saw what was going to happen
profitable for the people that were involved. Uh, the New
(32:36):
York Stock e Shane asked, they used to be nonprofits.
They used to be nonprofits. And I remember when clients
would come to visit us when I had our New
York City office. We no longer have that office anymore.
It's not necessary, Uh go down, take them down to
the floor of the New York Stock Exchange and you know,
(32:57):
speak with specialists see how things used to operate, and
they knew back then. I remember the last time I
was there, when they had specialists, they saw, they knew
what was coming, they knew that they were going to
go by the wayside. And now it's all high speed
electronic trading, fast as it can be. You can trade
twenty four hours a day. It's all the greatest to
getting tire world. And they sell this to you like
it's it's something that's prudent, something that's smart. I think
(33:23):
I might have mentioned this before. I rarely I am.
I am in the business. I own a registered investment advisory.
We have offices all over the country, clients all over
the world. My portfolio, I might look at it once
a year. I might look at my portfolio once a year.
(33:51):
I don't trade. I know exactly what I'm doing. You
take a look at what we done, what we've done
for our clients. And I made that last week, and
go back again. We archive all of these shows. They're
up on our podcasts. I am not saying this with
(34:12):
any arrogance at all. Okay, our philosophy, our strategy, how
we do things, we didn't vet. We didn't make it up.
It made this perfectly clear. This is this timeless wisdom.
Timeless wisdom. That's what it means to be like kind
(34:34):
of a true conservative, understanding certain rules of the universe,
truths of life.
Speaker 2 (34:44):
Yeah, I get asked, not not anymore.
Speaker 3 (34:47):
Used to used to get asked all the time is
by affiliates.
Speaker 2 (34:52):
Hey, Chris, you know it'd be great.
Speaker 3 (34:54):
You know if you could do the the stock market
rap for us every single day, quick recording. You could
tell us what the markets did at four o'clock and
we'll put it on a show, we'll promote the show.
My answer, no, no, I'm not being rude. I apologize,
but I don't believe in that. I don't at four o'clock.
(35:16):
I'm ninety percent of the time, I don't know what
the market's done over the course of the day. I
don't follow it like that. It's not important to me.
And that's the problem. Conventional wisdom is poison. What they
teach people about the markets and what they need to do,
(35:37):
or what they should do, or what they can do.
It's ridiculous. I'll give you another example. This as proud
of my son Steven, he was just several years ago.
It was he It was when he was a sophomore
in college. He's gone, he's done now. He got picked.
He got picked to be managed part of the endowment
(35:59):
for or Providence College where he went to school, and
he had apply, had to do an interview, all these things.
It was kind of a club that they had there.
And you know again he's you know, started asking me
questions and I said, well, you've got to make sure.
You've got to make sure that you guys that percentage
of portfolio running. You're not doing it to show off
(36:20):
over a quarter. This is the long this is long
term outlook. What does this money use for? And invest
it appropriately based upon that. You see this all the time.
They're like, oh, look at a stock market club or
these kids from this high school and they have they
have a you know, a small portfolio, that pretend portfolio
that they're there to manage, and while look at how
(36:41):
they did.
Speaker 2 (36:42):
What are you teaching those kids.
Speaker 3 (36:43):
You're teaching those kids to chase returns over a quarter.
Speaker 2 (36:50):
That's not right.
Speaker 3 (36:53):
That's the wrong thing to be teaching them.
Speaker 2 (36:59):
People be honest with you. Okay, you want to mine,
I don't look at my portfolio barely.
Speaker 3 (37:07):
Ever, Well, you know what I don't manage it. That's
my brother, Matthew's job, that's my mother. I don't man
he knows exactly what we're doing. Hey, why do I
need he? That's what he does, that's what he specializes in,
and that's quite frankly, that's what you need to do.
(37:28):
That's what you need to do. You need to delegate
the entire process to someone else. You've obviously got to
find someone that's actually competent, that's not gonna sell you
a bill of goods or oh gee whiz ohe the
firm is talking about a debasement trade right now, Well,
we better start moving everything around. Every bit of data
(37:49):
out there, okay, and you might think that you're different, okay,
everything Richard Taylor talks about this. He says, every bit
of data suggests that very very few individual investors should
be trading individual securities. Now, if most mutual funds, most
mutual funds cannot do better than their benchmark, you think
(38:14):
you can do better? Listen, I get it, okay, Uh,
I much rather have people take a small portion of
their money.
Speaker 2 (38:26):
You want to make it a hobby. Treat it that way.
Speaker 3 (38:30):
Treat you take a small portion of money that you
want to you want to speculate with Hey, it's better
doing that than you know, investing in some stupid or
putting money in some stupid gambling app. But understand that
what you're doing is speculation and understand that you could
lose it all and you know you.
Speaker 2 (38:47):
Lose it, you lose it.
Speaker 3 (38:51):
Yeah, failer actually says, don't risk more than you would
on a new e bike or a set of golf clubs.
For crying out loud, Well, it's different for everybody based
upon their unique situation.
Speaker 2 (39:01):
You can't let risk lead to ruin Again.
Speaker 3 (39:07):
We invite each and everyone to become a part of
our family at Markowski Investments. As I mentioned before, Okay,
there's no velvet rope here. We don't have a bouncer.
I don't got ten million dollars. Can't work with the markowskis, No,
we don't do that. Watchdog on Wallstreet dot com is
our site. Take advantage our personal CFO program.
Speaker 2 (39:27):
We'll be back like
Speaker 1 (39:32):
You're listening to the watch Dog on Wall Street
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy, Jess Hilarious, And Charlamagne Tha God!