Money Matters: Tesla Buzz, Tariff Trouble, and Market Signals

Episode Transcript
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Speaker 1 (00:03):
Good morning, Welcome to the March Madness edition.

Speaker 2 (00:07):
It's been a great matters show, March Madness, where.

Speaker 1 (00:10):
He Greenberg is obviously not here, or you'd hear his
booming voice dealing Greenberg is not here.

Speaker 2 (00:14):
It's been some madness in the markets.

Speaker 1 (00:16):
There's been madness in the market and madness in the
you know, you know what the odds are filling out
a perfect bracket madness.

Speaker 2 (00:24):
Yeah, it's like one in seventeen quintillion.

Speaker 1 (00:27):
You have just one in nine quintillion. It's yeah, one
in nine quintillion, which is.

Speaker 2 (00:32):
A greater era. There's a harder chance than winning the lottery. No,
this is actually a really cool thing. If I told
you I picked one grain of sand on the earth,
and you have to pick that exact same grain of sand,
you have a better chance of doing that than filling
out a perfect bracket. Seriously, because I guess there's only
like four quintillions grains of sand on earth.

Speaker 1 (00:51):
Who counted those? Right? Right?

Speaker 2 (00:54):
How do you buy that number out?

Speaker 1 (00:56):
I'm glad I didn't do that for a living. What
do you want to be? I want to be fan
count I'm awfully glad. Anyway, we broke the losing streak
four consecutive weeks lower and barely Fire managed to edge
up twenty eight points.

Speaker 2 (01:12):
No day, we were on route for the fifth straight
losing On Friday, it definitely was trading lower, but it
seemed like maybe two hours three hours before the closes
started to get some steam back to it.

Speaker 1 (01:22):
Bridy was an interesting day, and it you very well
could could say, Okay, that was a reversal day. The
Dow opened down five hundred points, it was done big
and it ended up higher. So I mean that's that's impressive.
That's very impressive. Yeah.

Speaker 2 (01:36):
And like we were saying, if fifth straight down week,
I mean we I mean, after coming off four straight
down weeks, we had a feeling that you weren't going
to get a fifth trade week, but we were on route.
But I mean that's the interesting thing now coming into
next week. The economic reports for this week, I mean
kind of showed that inflation is going to be the
focus point moving forward. Sure for the fat Sure they

(02:00):
really don't care about labor market. It doesn't seem much.

Speaker 1 (02:02):
They decided on Wednesday not to raise rates, which is
what we expected, but then they make a comment that
they could see as many as two rate cuts this year,
which I found surprising. Frankly.

Speaker 2 (02:13):
Yeah, it was two more than what the market had
and what they said that they expected from themselves.

Speaker 1 (02:17):
Yeah, I'm really previously, I hope we don't have two
more because if we do, that means the economy is
really softened up.

Speaker 2 (02:23):
Right, there's definitely the dot plots were interesting, and Jerome
Pale's comments was saying that the economy is still relatively
strong and we're not seeing the tariff destruction that all.
Like the Atlanta Fed GDP kind of pointed out, and
we talked about this on the show a couple of
weeks ago, but that Atlanta Fed GDP NOW number. They
come out with an estimation on what they think GDP
is going to come out for each quarter. They had

(02:45):
it at two point six percent growth something like that
for quarter one. Then after the tariffs came out, they
had a negative two point one percent growth and the
biggest revision in the history of that Atlanta Fed GDP
now numbers. So there was a large expectation that we
were going to see some real slow down in the
economy and Jerome pal saying, we have not seen that
as of yet.

Speaker 1 (03:05):
Well, he certainly has better numbers than we do. Makes
like kind of whatever he says.

Speaker 2 (03:10):
Although some people say the FED drives a car by
looking in the roof of your mirror.

Speaker 1 (03:13):
So it's certainly when it comes to interest rates, the
Fed is the tail wagon the dog. There's no question
about it. By the time they decide to move on
interest rates, interest rates have already moved. Give you an example.
We use the Vanguard Money market Fund for our excess
cash because it's been paying a good rate to return.
It was five percent six months ago. This week three point.

Speaker 3 (03:36):
Nine three point nine on the Vanguard.

Speaker 1 (03:38):
Yep, that's how much interest rates had come down, three
point nine.

Speaker 2 (03:42):
Remember the Vanguards, they just roll one to three month treasuries.

Speaker 1 (03:45):
It's all they're doing. So it's a good measure of
what's going on with short term rates. I'm sure we
saw a short term race. The two year three point
nine to four at the close on Friday, the ten
year four and a quarter. Those are down twenty basis
points from two weeks go, so we are seeing a
fairly significant slide in interest rates. We saw a mortgage

(04:06):
refinancial to pick.

Speaker 2 (04:07):
Up what's our ten two years spread? Right now?

Speaker 1 (04:10):
Well, you're at four and a quarter to so twenty
unite basis points.

Speaker 2 (04:14):
It's not much. We have a pretty flat curve.

Speaker 1 (04:16):
Across the Yeah, but after being flat for what nineteen
twenty months inverted inverted, right, it's nice to see a
normal yield curve yeap.

Speaker 2 (04:23):
And then, like you're saying, the thirty year mortgage Mac
Mac mortgage rates seem to Freddie macmorts rates seem to
be coming down six point five in there around right now. So,
I mean, but I'm seeing a lot of reports. Six
and a half isn't enough for this housing industry to
keep moving. I mean, at least the new home sales side.

(04:45):
We're still seeing existing home sales be pretty decent, but
I think it's largely because of the one million plus
home sales. Those people are doing just fine right now.
It's the people that rely on interest rates that are
having a really hard time purchasing those new.

Speaker 1 (04:57):
Homes, certainly locally. That's what's happening, is is the people
that are trying to sell homes in the four or
five six hundred thousand range, they are sitting on the
market for quite some time, whereas the million dollar homes,
if they're in a great location and really going fast
kill for sure again, this inflection California continues and maybe
even picked up a little steam with the fires. I

(05:20):
don't know, that's kind of the thinking.

Speaker 2 (05:23):
And you know what we've seen through the middle of
February two the middle of March now is the volatility index,
the VIX. This is what measures the volatility on the
S and P five hundred and volatility is just saying
how much are stocks going up and down? How many
shrech shares are being traded, and so the more and
more shares being traded, it's to sign a fear uncertainty

(05:45):
in the market. And so we've had the VIX. Normally
it's around the twelve to fourteen, but it's spiked up
to the high. I think it was around twenty seven
week so ago, but it's staying in those twenties now.
So there's definitely a lot of still uncertainty in the
market where investors not sure we're going to be headed next.

Speaker 1 (06:01):
The VIX is the volatility index. As Todd said, they
use puts and calls, a very sophisticated formula to come
up with that number, but it just gives you a
sense of the volatility of the market. I think back
in eight it jumped up to eighty or some silly thing,
but you're right, twelve to fourteen, normal, fifteen in there.

Speaker 3 (06:21):
Yeah, started the week off at what twenty eight's and
finished the week off at nineteen. If you guys remember
last year the yen carry trades spiked it up all
the way to sixty six over nineteen, remember.

Speaker 1 (06:32):
That really quick for like two days absolutely two days
ago it came right back down. Yeah, it was just
a matter of days, wasn't it.

Speaker 2 (06:37):
And when we talk about Volatiley, we talk about risk,
and that's where we'll bring in this disclaimer. The show
is sponsored by Greenberg Financial Group and you can listen
on seven ninety KNSD or iHeartRadio. The show discusses different
investment products and strategies. Every product and strategy has some
type of inherent risk, and we strongly encourage our listeners
to properly understand these risks to determine whether to buy, sell,
or hold. The show has been on the air for

(06:58):
over thirty years. Book Financial Group is redshirt with the
sec You can visit our website Greenbrik Financial dot com
for more information. Obviously, we have our YouTube page that
you can access for all of our TV shows. But
we are on KVO Way Sunday mornings after Meet the
Press as well as Sunday nights after the ten o'clock news.
We have our flagship show on Sunday that you're listening
to right now, but also we have Saturday shows on

(07:21):
KNST that if you want to listen to their at
around six to twelve and things like that. Where are
we at now, We're at.

Speaker 3 (07:27):
Six thirty, eight am, eight thirty am, eleven AM and
eleven thirty am. The eight am and eight thirty am
shows we cycle through and sometimes you'll hear Jonathan Sabilia,
our estate planner here in the house.

Speaker 2 (07:40):
We got a lot of information for you all anywhere
you want. We just Dave does his newsletter every single month.
I do mine as well. We release that so if
you want to get signed up for that, you go
to our website at the very bottom of the site
you can sign up for the newsletter. But obviously if
you want to take advantage of our free financial plan
we've been doing a lot lately. This week was pretty crazy.

Speaker 1 (07:59):
Dave felt I felt.

Speaker 2 (08:02):
Back to back NonStop.

Speaker 1 (08:03):
It's unbelievable.

Speaker 2 (08:04):
Yeah, and especially with this market. It keeps you busy
throughout the day.

Speaker 1 (08:07):
Well, and I don't wonder why when I when I
I've said in on a few of those are just
they're so sophisticated, they're so cool, and they're free. It's ridiculous.
I mean, I remember I've worked for a couple other
firms in town over my long career, and two and
three thousand dollars was not an unusual price to have
to pay for what you guys do for nothing.

Speaker 2 (08:29):
Yeah, And honestly, I start to realize with all like
you're saying, the sophistication, why some people do charge because
it is a lot of work. You know, we put
in a lot of work for these plans and the proposals,
but ultimately sometimes, yeah, it's completely free. And that's and
that's the risk we take because we know that at
the end of the day, our job as educators and
to educate you. You can take the plan and do
it yourself if you really feel comfortable to do it,

(08:51):
but ultimately, we just want to have the opportunity to say,
if you wanted to use us, this is how it
would be.

Speaker 3 (08:57):
And whether you're in your accumulation phase or decumulation phase
of your financial life. Whether you're twenty six or sixty
or a better retire the financial plan works for you.
We just had somebody that was about twenty six years
old come in and we scoped out exactly what he's
spent it, and he had no idea exactly what he
was spending. His jaw dropped, you know, and he's talking
about wanting to buy a house in the next couple

(09:17):
of years. And it was a reality check for this
guy to come in and say, oh, you know, I
do make a good amount of money, but I'm not
allocating it properly to achieve my goals.

Speaker 1 (09:28):
Excellent. Well, we're about ten minutes into the show and
we haven't even done the market yet.

Speaker 3 (09:32):
That's a let's talk about it. The Dow Jones was
up one point two percent this week. That S and
P five hundred was up half a percent this week.
The NASDAC went up twenty basis points two tenths, Russell
two thousand small caps went up point four percent on
the week, and the RSP equal weighted S and P
five hundred went up point six percent. It's really interesting
to see again that RSP only down eight tenths of

(09:54):
a percentage on the year, while you have that S
and P five hundred dragging us down three point six percent.

Speaker 2 (09:59):
Well, the NASDAK down eight percent.

Speaker 1 (10:01):
You know what that tells you, of course, is the
is the RSP equal weight to every single stock, whereas
the S and P, the NASDAK overweighted those technology names.
So it really isn't when you look at the market
down three point six on the S and P five
that's not really what is down. What the market is
down the RSP the equal weight of down point eight
that's really what the market's down for the year.

Speaker 2 (10:22):
Yeah, and to be fair, you know, December wasn't a
great month off the high. S and P is down
about eight percent, right, so we thought around ten percent.
I think we got to that teen percent number at
one point intra week, but that was really what we've
expected ten to fifteen percent. We at least got a
ten percent pullback. This might be the jump off point,
but realistically, I think we've been talking for a while.

(10:44):
There might be a little bit of a run up,
some more fear and then maybe a continuation to the training.

Speaker 1 (10:50):
Dean thought there'd be more legs than there has been
I didn't I believe that that fifty seven hundred coming back.
Fifty seven hundred was just when we go down. We
hit fifty seven bounce, hit fifty seven bounds, we broke
below fifty seven. Now that becomes the roos, the ceiling,
if you will, And it went right back up to
fifty seven hundred. Failed, that's turned into quite the.

Speaker 3 (11:13):
Little and now we're seeing fifty six hundred doctors at
the trampoline.

Speaker 1 (11:16):
Fifty six hundred. We're trading between fifty six hundred and
fifty seven hundred. So right now, if you were saying, well,
what about the stock market is it's kind of in
a technical prison right now where traders will buy if
it gets down to fifty six hundred, and they will
sell if against to fifty seven hundred. It's going to
take some sort of an event to break that out.

Speaker 2 (11:38):
But I mean, we were down to fifty five hundred
just last week, you know, so.

Speaker 1 (11:42):
It well fifty five to eighty well ffty five hundred,
fifty five hundred.

Speaker 2 (11:48):
Even, yeah, it was about fifty fifty five h nine
we got down.

Speaker 1 (11:52):
Okay, so fifty five so I'm I misspoke. So fifty
five is the support fifty seven is the resistance seem
that's what almost fifty six exactly. That's why I just
wanted fifty five to fifty seven exactly. If it gets
down around fifty five hundred, you can be comfortable getting
a little bit more aggressive. Is at the bottom. We
won't know until it's over, right, but.

Speaker 2 (12:11):
There's definitely a trend line that it bounced off there
at fifty five, and that's going to be a continuation
of that trend. As long as it holds that trend,
we're not incorrect and territory, and that's what the kind
of I saw a lot on the headlines this week
is are we in correction? Territory? Stocks are on their
route for correction? Territory And you know, obviously they believe
correction is more than I think. They say ten percent, right,

(12:33):
correction is ten percent?

Speaker 1 (12:35):
Right.

Speaker 2 (12:35):
I don't think the bear market is twenty percent? Okay,
it's not fifteen it's twenty yeah, Okay, who comes.

Speaker 1 (12:41):
Up with these things? So the NASDAK is technically in
a bear market, like who cares? Yeah, technically, and the
Russell two thousand, the small cap is in a bear market.

Speaker 2 (12:51):
Where last year technically we should have been in a
recession because we had an invert inverted curve.

Speaker 1 (12:55):
Yeah, they had any inverted okurve predicts per session like
every time except when it doesn't. Yeah, this is the
first time so longuest inverted.

Speaker 3 (13:04):
Yield curve in history twenty four months.

Speaker 1 (13:07):
No, we'll watch, we'll have a recession. Let's say we
have a recession next year's say, yeah predicted that you know,
really like the old stop clock is right twice a day, yeah,
sort of thing. So it's it's Sunday airing Sunday morning. Right. So,
so the first two rounds of March Madness are about over,
and I think at this point the excitement's gone.

Speaker 2 (13:28):
They're still people are listening to us at eight a m.
I mean the Sunday games.

Speaker 1 (13:32):
Startday games haven't started, Yes, I got that. So we're
about three quarters of the way through the first round
or maybe a little bit more than that. But isn't
it amazing how fast it goes from uh, the issue fork,
I'm gonna do it this year to well listening ever end?

Speaker 2 (13:45):
Well you obaye, like three days sounds like looking at it, bracket, well.

Speaker 1 (13:51):
No, they gave me these online brocket. It's pretty good
with online, but I really messed these up and so
it's gonna have to take an act of God for
me to win anything.

Speaker 2 (14:01):
Don't worry. I tried to use Chad GBT to fill
out mine, and how does that work. It's it's just
as good as everyone else's.

Speaker 1 (14:06):
Okay, you asked Chad GPT and you're a believer, and
Chad GPT right, I mean I should believe.

Speaker 2 (14:13):
I know what do I believe?

Speaker 1 (14:15):
You use it? Right, you trust it, You use it
and you ask it to a certain parameters, and it
spit you out of bracket. I'll actually spin out the bracket.

Speaker 3 (14:23):
It actually did fifteen minutes of deep dive research prior
to really bracket.

Speaker 2 (14:27):
Yeah, you know, I had it do research. It checked
twenty four different sources, went through all of its analysis,
and it was really close to that UC San Diego upset.
I mean, it had that one and they almost won
on that Thursday night.

Speaker 3 (14:40):
Don't worry, Dave. Little League baseball come around soon.

Speaker 1 (14:43):
I love the League base I know, yeah, I love it.
I love it crying and throwing the bat. It's it's
so real. It's just real. It's real life, right at
opposed to all this.

Speaker 2 (14:54):
Anyway, professionalism All yeah, like that.

Speaker 1 (14:58):
You've seen that liberty you try to act liberty mutual
fun commercial where the man's fighting with the baby. I
thought the baby.

Speaker 3 (15:07):
I haven't seen that one, and she.

Speaker 1 (15:08):
Goes, will you stop you my beb know if the
one being a baby, it's kind of kind of crazy.
So anyway, fifty five hundred noticeable support, fifty seven hundred
noticeable resistance, and we're going to kind of trade in
those ranges until we break out one reason or another.

Speaker 2 (15:27):
Well, I mean, how do we not break out on
April second.

Speaker 1 (15:29):
Dave, that's going to be interesting with the with the
with a more and more of the And that's one
of the things that helped things settle down this week
is the tariff tantrums calm down, And that's my turn by.

Speaker 3 (15:42):
I think Jerome Powell during his Wednesday speech did say
that there are the Feds pricing in all these tariffs
supposedly right there.

Speaker 2 (15:51):
You remember the taper tantrum.

Speaker 1 (15:52):
That's no that that's why That's kind of where I
got it was triiff tantrum? Did it make sense? And
it's kind of what a yes?

Speaker 2 (16:01):
And I like you, I do think it's fair to
say it's a tantrum because it's not based on any
actual reports that we've seen economic reports, Ernie's reports slow down.
We haven't seen that. I mean I actually saw a
thing that they're still growing guidance.

Speaker 1 (16:14):
They're just as constant barrage of lower guidance because they
don't know.

Speaker 2 (16:19):
And that's fair from like management perspective, and they're like,
oh yeah, we want to you know, hedge on the
lower side, and so that's making investors hedge. But realistically,
we have not seen any numbers say that we are
slowing down yet. And it's really early too.

Speaker 1 (16:32):
It is, but you can you can feel it, you
can feel the slowing. I mentioned it last week in
the show where this my friend had a client cancel
a fifteen thousand dollars furniture order because of the stock market.

Speaker 2 (16:43):
This is my this is my point. I think about
that too. Our economy, we know is majority services oriented,
absolutely at least seventy percent. We are not a manufacturing
economy like we think we are. Right, So as much
as tariff's will impact manufacturing, the vast majority of our
will not really be impacted that much by So, I mean,

(17:03):
how is our job financial services impacted by TERRFF, sure
at all, right, And there's a lot of jobs in
America that are like that. They're not going to be
impacted by tariff now. And that's where most of the
GDP of America comes from, is service oriented jobs. So
we can't forget that. We're not Germany that's high manufacturing.
You know, there are other countries that are going to
hit way harder because their GDP is reliant on manufacturing.

Speaker 1 (17:25):
So I think us playing comes from people who are
not friendly with the administration trying to send up false
information about what it's going to be. You know, twenty
percent tariff, I mean everything's going to go up twenty percent. No,
it does not.

Speaker 2 (17:40):
And realistically, the idea that we're going to bring all
these manufacturing jobs back to America without having a big
influx of immigration is not going to happen. I mean,
we as Americans have kind of there's a reason we
pick services jobs.

Speaker 1 (17:52):
Yeah, we don't work, you know. I mean we're not the.

Speaker 2 (17:55):
Ones grinding in the in the assembly lines anymore like
we were in the fifties and sixties. So we have
a different populous working base. They want the office jobs.
If you bring a whole bunch of manufacturing jobs. We're
not switching from the office to the factory. You're gonna
have to bring in other people to do the factory jobs. Right,
So there is something I think we have to just
because we fix this globalism where some of these inputs

(18:19):
are coming from other countries, those inputs still have to
be relatively cheap when they're made here, and if they're
using American workers, it's not going to.

Speaker 1 (18:27):
Be No, no, we're working not a country of physical
laborers for the most.

Speaker 2 (18:31):
Part, not anymore. I mean maybe we were, you know absolutely, yeah, right, yeah,
you can't make that case anymore about.

Speaker 1 (18:37):
Us, No, you can. I think that's I think that's
very well well put Todd. Next week we've got the
you said talked about inflation. Next Friday is the PCEE,
which of course is advertised as the Fed's most important
gauge of inflation.

Speaker 2 (18:52):
You ever hear of a super core CPI.

Speaker 1 (18:55):
Super corey, No, you have it?

Speaker 2 (18:58):
I got you on this one, okay. I also I've
heard of it in the past. I forgot what it was,
so I looked it up again because you know, supercore. Yeah,
there's CPI, which is just inflation there's core CPI, which
is where you strip out food and energy. Supercore is
where you also strip out housing and rent. The only
thing you have left is all just the airline fares

(19:20):
and insurance and auto and things like that.

Speaker 1 (19:24):
And to take out three or fourth though, you have
super supercore. Hey, you guys want a fun fact.

Speaker 3 (19:30):
Let's hear it.

Speaker 1 (19:30):
Okay, let's even come up with this. I couldn't come
up with this retailer with the most locations.

Speaker 2 (19:37):
Worldwide Starbucks sorry retailer, sorry.

Speaker 1 (19:41):
The retailer with the most Starbucks And we're the most
retailer what retail establishment? Okay, as the most locations worldwide.
It's subway and you're talking about McDonald's, right, would be
an obvious one. Starbucks would be another pretty obvious one.
I understand that time.

Speaker 2 (20:00):
It should be suby.

Speaker 1 (20:00):
What if you took those two and added them together,
and this this business has more locations than that. Who
seven eleven? What's seven eleven has eighty three thousand locations nationwide,
more than Starbucks and McDonald's.

Speaker 3 (20:16):
Together, and they trade all of them have about forty
thousand they trade publicly.

Speaker 1 (20:21):
Seven eleven. Yeah, I don't have a c I've never
bought a share of seven eleven.

Speaker 3 (20:25):
I would not be a buyer or seven.

Speaker 1 (20:27):
But I think that's interesting. That is an interesting happened
to ship over that, And I thought, well, that's a
that's a fun fact.

Speaker 3 (20:32):
I mean, I feel like we don't even have them
many seven elevens here and there zone Tucson, you know,
we got.

Speaker 2 (20:36):
No there's there's very little seven levens and Tucson. But
that that so I guess that's that's confusing to me
because they're the most. They think that's the most.

Speaker 1 (20:45):
Seven eleven has over eighty thousand locations worldwide. McDonald's has
forty thousand. Stopbucks has forty thousands.

Speaker 2 (20:51):
Oh worldwide.

Speaker 1 (20:52):
Yeah, I said worldwide, didn't I?

Speaker 3 (20:54):
Yeah you did.

Speaker 2 (20:55):
I always I always heard Subway had the most worldwide.

Speaker 1 (20:58):
Yeah, you might want to google it. I want to
ask Google the ask chat GPT.

Speaker 2 (21:03):
Subway has thirty seven thousand locations.

Speaker 1 (21:05):
Not even half of what seven eleven has.

Speaker 2 (21:07):
It's the largest restaurant change globally.

Speaker 1 (21:09):
No, heid McDonald's has over forty.

Speaker 2 (21:12):
Now it says that even as a twenty four even surpressed,
make wait a second, how many did you say?

Speaker 1 (21:16):
Notty seven thousand?

Speaker 3 (21:17):
Well, hear this. Japan. Just Japan has forty thousand, seven
eleven locations.

Speaker 1 (21:22):
Japan does yes, see deal in Japan. That's crazy. So
they've got half of the locations in the world.

Speaker 3 (21:27):
That's insane.

Speaker 2 (21:28):
That doesn't even make sense. How would you have forty three?

Speaker 1 (21:32):
There?

Speaker 2 (21:32):
Just gotta be some.

Speaker 1 (21:33):
I have some great news there. What's the great I
have some great news. Great news. The wholesale price of eggs.
The wholesale price of eggs since the end of February
of falling forty four percent. Perfect the wholesale price.

Speaker 2 (21:45):
I thought you said you got rid of your tesla.
I thought that was I said, I have great news.

Speaker 1 (21:49):
What are you talking about? Why would you get rid
of tesla? People are buying it? Help out Elon man,
Come on.

Speaker 3 (21:55):
Even people that don't like Elon most right now are
buying them just to destroy them.

Speaker 1 (21:59):
Is It is interesting because in the last sixty days
I have had a neighbor and I live in the
fort Low Historic district, so it's mostly left wing. Well,
we have a right wing on a ballot and you
can't vote for a republic and because they're not even
on the ballot right, so that's how far left it
is and probably one of the most left wing people

(22:20):
in my neighborhood and a client of mine who I
know to be a Trumpster have both purchased Teslas within
the last sixty days, so I'm not sure. There was
a post on Facebook that had Tom Hanks in the
movie Todd you told me I can't Forcet Gump Forrest Gump,
and he's sitting on the bench and he's gone. Now,

(22:40):
let me get this straight. All of the people that
wanted us to buy electric cars are now hating the
guy that builds electric cars. It does kind of make
you wonder. I mean, the guy's giving up billions of
his own personal wealth, He's given up countless hours of
his time, he rescues of space. What's not to hate

(23:01):
about that guy, you know?

Speaker 3 (23:03):
And he's protecting our tax dollars in a fashion.

Speaker 1 (23:06):
I feel like I'm really cutting edge because I've gone
from driving a tree hugger car to driving a Nazi
car in twenty two months. And I haven't even swished vehicles.

Speaker 2 (23:16):
Yeah that's pretty good.

Speaker 1 (23:17):
Huh, that that's pretty good. It's just amazing how the
perception has been. I will say, we're gonna talk about
Tesla In the next segment, I got quite a bit
to say about Tesla economy. Retail sales increased two tenths
of a percent in February time. That's kind of in
line with what you were saying. They actually expected a
six percent rise though, so that's a little bit off.

(23:39):
Sales have previously owned homes up four point two percent
in January. What was that? Retail sales again, two tenths
of a percent in February and they expected six tens
of a percent.

Speaker 2 (23:48):
Yeah, coming off a week January makes sense.

Speaker 1 (23:50):
Yeah, January is very week, so a little rebound makes sense.
Home depot is now twenty percent below a tie in
bear market territory, and so much for the housing rebound, right,
I mean I heard analyst say we got to buy
home deeple housing is about to rebound. Now, sitting here thinking,
I don't think so, I don't feel that again, talking

(24:11):
about just high end homes selling quickly, homes that are
not high end homes struggling to find a market. Anyway.
We'll be back with this March Madness edition right after
this break. Thanks again for joining us. We appreciate it.

Speaker 2 (24:24):
Welcome back to the Money Matter Show. My name is
Todd Glick. I'm here with Sebastian Borsini and David Sherwood.
This week in the market, we had some more volatility
ups and downs, so we actually finished the week up
about fifty basis points on the S and P five
hundred throw.

Speaker 1 (24:37):
A four week losing EA streak.

Speaker 2 (24:39):
You know what we've been hearing a lot about is Tesla.
I got, yes, I got texts, emails. People want to
know what we should be doing. And then you as well,
you've been getting a lot. So let's talk a little
bit about Tesla.

Speaker 3 (24:51):
All right.

Speaker 1 (24:52):
So a woman in Los Angeles, get this. A woman
in Los Angeles, I know, just want to listen back
to the radio show. I say, get this a lot.
I need to stop saying that. Yeah. Sorry. A woman
in Los Angeles has a twenty nineteen Tesla. She's had
the Tesla for a while, right, it's the twenty nineteen
She comes home to a note in her mailbox. High neighbor,
would you please consider getting rid of your Tesla vehicle.

(25:15):
The message you are sending is I am a Nazi too.

Speaker 3 (25:17):
That is so ridiculous.

Speaker 1 (25:19):
I mean, twenty nineteen, she's had the car for six years.

Speaker 3 (25:22):
I don't care. Who cares how long you've had the car? Why?
Like snith, that's crazy.

Speaker 1 (25:29):
I guess I've had in the past week. This past
week I had more people. Now, we were money managers,
so we don't clients don't give us a lot of
input after we get originally get set up. No the routine, no,
the risk tolerance, know their profile, know what they're trying
to achieve, and then they hand it over to us
when we drive. So I seldom get a client calling

(25:52):
and saying what about this stock? What about that stock?
I had more calls from our client last week about
whether or not it was a good time to buy
Tesla than any other stock in the forty years I've
been doing.

Speaker 3 (26:09):
I have one that might have that beat DJT. What
about that? You think you've had more people wanted to
buy a Tesla than DJT?

Speaker 1 (26:15):
Yes? Really, yes, yeah, I had a few with DJQ,
but it was spread out over a period of periods
of weeks when Trump was running. Right, This was all
last week, and it was at least five or six people.
I mean, if I have one, it's a big deal.
One client call and say, hey, how about IBM. You
know that's like, oh, really, you want to. You know,
it's just rare. It's it's not the kind of business
we have at least a half a dozen people. The

(26:37):
stock did respond with a five percent rally on Friday.
It still has the price earnings of eighty. There's a
lot of moving parts price targets. I'm seeing between one
hundred and seventy and three hundred. It closed it about
five I think on Friday. Price started between one seventy

(26:58):
and three hundred. One potential source of income they had
was there one hundred and ninety nine dollars driver list
technology fee. They recently reduced that to ninety nine dollars
because many of their competitors are offering it for free.
So that was going to be a source of revenue
that's gone. The stock did move higher at the open
on Wednesday after the company received approval from the California

(27:20):
Public Utilities Commission for a passenger transport the transport permit.
Company applied for the permo to offer ride hailing services,
which could have eventually lead to that robo taxi service.
That's that's coming. It's it's and you know, you look
at you look at things, you said, well, gosh, what's
weighing on the stock. This this this backlash against Musk,

(27:45):
and I'm really not sure where that's coming from. Honestly,
I think it's against the administration in general. But Musk
is an easy target.

Speaker 3 (27:52):
Easy target because he's part of it, and he's been
part of dose. I mean, last four weeks here in Tucson,
we've had people protesting elon Musk. And they're the Tesla cars.

Speaker 1 (28:01):
Yeah, yeah, Ok. They were at Oracle and I and
they were at Oracle and River and they've moved over
to Camberland River every Saturday. And we're not sure why
they moved to Camberland River, which is much less heavily
traveled than Oracle and River.

Speaker 3 (28:13):
We'll see if it's the you We'll see if they
do it for the fifth time this weekend.

Speaker 1 (28:17):
They might have gotten run out because it's too close
to the Tesla dealership, you know. And then you've got
this crazy stuff going on, like uh, Mark Kelly, Senator
Mark Kelly uh trades in is Tesla and gets a Taho.
What happened? I mean, are there no other electric cars available?

Speaker 2 (28:35):
Mark?

Speaker 1 (28:36):
You had to get a Tahoe? You know. It's just
it's and and Edmunds. The car the used car. Uh,
I think it's used car. It's a car pricing service, Edmunds. Right,
They showed the Tesla owners have been trading in. This
is the headline. Tesla owners have been trading in their
vehicles at record levels since Musk joined Trump's White House. Well,

(29:00):
there have not been a lot of Tesla's out there
to be traded in. Number one. Number two, if you
trade in your Tesla for a new Tesla, which is
what most people do, it doesn't count. They don't. They don't.
They don't take that out.

Speaker 3 (29:12):
They don't take that.

Speaker 1 (29:13):
No, that's included.

Speaker 3 (29:13):
That's ridiculous.

Speaker 1 (29:14):
That's included. So, I mean, it's just it's just just ridiculous,
you know. And and how hard is it to hit
a record number of return cars when when, first of all,
the Tesla really became popular about three or four years ago.
So either are a lot of these cars are coming
off of leath, plus how many of them have actually
been turned in over the last few years. Whether you're
pro Tesla, pro electric, well, whatever you are, it's just

(29:37):
it's just it just doesn't seem right. Shock's down fifty
percent from its high, but it did rally four percent
on Friday.

Speaker 3 (29:44):
And I think that that came about because Thursday, Elon
Musk came out and said to the shareholders, hold a stock,
we have a bright future.

Speaker 1 (29:51):
Hud Well, you know that he could say that, but
well I heard I heard that too, But I don't
think that.

Speaker 3 (29:56):
Was You really don't think that Elon Musk moves that stuck.
I think that he moves it quite a bit, and
I think that he has in the past.

Speaker 2 (30:02):
I think he moved it. He has the ability to
move it for sure. Maybe, I mean, you could definitely
make a case of this particular one. Maybe wasn't, but
for sure he has had I mean, imagine not imagine.
Remember when he did the smoking on de Rogan and
the stock Mark stock dropped like ten percent just for him.
He didn't even say anything. And then when he said, uh,
we're gonna go to I'm taking it private at four twenty,

(30:24):
the stock went almost like immediately.

Speaker 3 (30:28):
And then when he was buying when he was buying Twitter.
Now X, it will rallied.

Speaker 2 (30:32):
Doesn't mean it will stick around, but there's definitely I
think we live in an era where it's it's it's
your four Yeah, you know you hear hear him talking
about doche cooin and all of a sudden dose coin's
going up.

Speaker 1 (30:41):
Yeah. I think the thing you have to keep in
mind if you're interested in Tesla at these levels, and
remember it was for eighty eight not that long ago,
so two thirty five looks pretty darn attractive. It's still
the price earning RACO of eighty. Their business is still
slowing because of competition and pushback against Musk.

Speaker 2 (30:59):
They're not getting credits that they're not going to get
regulatory credits in the same fashion that they were.

Speaker 1 (31:04):
Well that it depends. I know Trump is threatened against US,
but I don't think anything has been done there. I
had to client get them just a week ago.

Speaker 2 (31:11):
I would expect that that ESG slows away and that
is gonna I mean, that's part of their revenue. Sources.
Other companies will pay them because they have so much
access credit. If that system gets abandoned, that's a little
bit less of revenue again. I mean, they make a
couple of billions just from that.

Speaker 1 (31:27):
I just think it'd be careful if you want to,
you know, buy a little bit to support Elon, that's fine.

Speaker 3 (31:33):
And not just a car company too. Though you have
you guys seen anything about the human eyed robot humanoid robot.

Speaker 2 (31:39):
The Tesla one.

Speaker 3 (31:39):
Yeah, they're I don't think that it's really making much
way just yet. They're still learning how to walk and
catch balls. But eventually they're trying to make it like
the R two D two out of Star Wars. How
are you going to monetize this? We'll see you know.

Speaker 2 (31:52):
Well, no, it's very simple how you monetize it. It's
a personal superistant for your home. It would, in theory,
be able to do all your chores. It's like having
an old school housewife at your home.

Speaker 3 (32:02):
Next, I guess I just say, how do we monetize this?
It's hard for me to grasp just yet.

Speaker 2 (32:08):
Well, first of all, you have to pay for just
obviously the robot. Then you can have subscription services on
the robot that's the top of the cloud that gives
you even more ability that the robot can do. So
the more and more you you subscribe to those different services,
you get those things, and.

Speaker 3 (32:23):
Then corporations start to buy it. McDonald's let alone.

Speaker 2 (32:26):
Yeah, I mean, we saw with n Video this week
on their GtC conference that they could possibly have whole
factories of robots making things.

Speaker 1 (32:34):
Well, how many houses do you walk into it and
have that annoying disc going around the robot the annoying
disc yeah, the vacuum, yeah.

Speaker 2 (32:43):
Yeah, yeah, right, and eventually that's where it's going to be,
you know, and we're and realistically, I saw a video
of Boston Dynamics. This is a it's a private company.
Boston Dynamics has the most state of the art robots,
in my opinion, that I've seen. I mean, these things
are insanely impressed.

Speaker 1 (33:00):
And these are the ones that were that taught them
to play soccer, Yes, and then they taught themselves how
to play it better. Are you kidding me? They taught
the robots how to play soccer and then taught each
other how to play it better. Yeah.

Speaker 2 (33:16):
Well, you know, it's really along those lines as AI.
I mean, this has been known for years and years now,
but the top chess player in the world can't even
come close to the AI version of chess because the AI.
So the last kind of covet that they were trying
to find is that go. The game Go is a

(33:39):
really hard game. It's very subjective, and computers weren't good
at it, and so eventually they were able to create
a supercomputer that beat the best go player in the world,
and the go player the best goal player in the world.
Is like, he did something that made absolutely no sense,
and then by the time we were done with the game,
it made perfect sense. He knew how to play against
my emotions. Like the robot figured out that he had

(34:01):
to do something wrong because the other player was playing
so right to mess up his formula. Wow, these things
are insane and so now, yeah, even the best chess
player in the world can't even come close to these things.
So eventually you would think that all these different manufacturing
jobs is humans aren't going to come close to the
level of perfection that these robots are going to be
able to perform at. So why would you use human

(34:25):
capital for that?

Speaker 1 (34:26):
Yeah, and then to run down some of the markets
that oil was up a dollar thirty to sixty eight thirty.

Speaker 2 (34:31):
You're going from that to to oil?

Speaker 1 (34:34):
You know, well, you need you need to.

Speaker 2 (34:37):
I thought we have more to talk about. Just think
about how much they're more there is to NA video
When people are like, how much more can it go? Well,
we're we're just talking about your phones and our TVs
and computers that need these things, and and and we
know that cars have a whole bunch of and they're
going to continue to need more and more advanced things.
I mean, eventually your car is gonna be able to
dry for you, so it's going to need that Blackwell

(34:59):
chip in that car.

Speaker 3 (35:00):
So on that note, didn't in video just come out
and make an agreement with the GM.

Speaker 2 (35:05):
I didn't see that.

Speaker 1 (35:06):
I'll look it up.

Speaker 2 (35:07):
I mean that these are things that you know, obviously
am D this is a company that has been absolutely
hammered on price. But AMD's another company has good chips,
you know, and there's a lot of companies that are
coming out with these things. What is the future of it?
I think the video CEO really is pointing to the
fact that we don't even realize or probably in the
third or fourth ending of this thing, because there's so

(35:27):
much more capabilities that could be brought out. And then
it's like, well, there's a lot more people that want
these chips than just who we thought originally. It's not
just meta.

Speaker 1 (35:37):
Yeah, I could expand that, you know, coming up on
a break here, we'll get it ra after the break
fashion and we'll be back again right after this break.

Speaker 3 (35:45):
Sebastian Borsini. I'm here with David Sherwood and Todd Click.
Right before the break, we were talking about how in
Video was actually going to be partnering with General Motors
to jointly develop the next generation vehicles that incorporate artificial
intelligence within the vehicles.

Speaker 1 (36:00):
Yeah, and then Vidio Shock is just stuck in the mud.
And I thought, I saw Jim Kremer talking about today
and he said that it's become a meme stocks. It's
in the hands of the short term traders who are buying, selling,
buying something by you know, the zero dated option people.

Speaker 2 (36:19):
I think that's also to be fair to maybe not
to be fair to create. That's the world we live
in now. I mean, we live in a very volatile
trading market. Right we look at Apple. Apple fell off
a cliff, Tesla fell off of the video fel I mean,
it's not just the video to a lot of Max
Seven's trade like crazy betas.

Speaker 3 (36:37):
As of Monday, we were talking about last week how
many stocks are off twenty percent off their highs. Alphabet
down twenty one point one percent, Amazon down nineteen point
nine percent, Apple down nineteen percent, Meta down nineteen point
eight percent, Microsoft nineteen percent, in Vidia twenty two point
seven percent, and as of Monday, Tesla was down fifty
percent off of its highs. Yeah, all MAGS seven stocks

(36:58):
getting destroyed.

Speaker 2 (36:59):
All the makes Evan's got taken, and that's what we
see in this price movement.

Speaker 1 (37:02):
Right.

Speaker 2 (37:03):
We talked about how the equal weight it is only
down eighty basis points for the year, whereas the SMP
down three point six. The Nasdaq, which is pretty much
a lot of those MAGS seven is down eight percent.
So we're seeing a segment of the economy getting traded
off because of some of that euphoria of all this
growth we're going to have is maybe not going to
be around with tariffs. But again, I don't see how

(37:24):
that makes too much of an impact, especially if you're
an Amazon or a Google, Like, how did tariffs impact
your business model? Yeah?

Speaker 1 (37:32):
Yeah, we saw the same thing with Tesla after the election,
when Tesla doubled, literally doubled in about a month, and
we were on this show said this is crazy, this
makes no sense. This stock is over priced, this stock
can't have to come down. Well, you know, there was
a lot of other things that went into that formula.
But I think the stock probably would have gone from

(37:53):
four eighty eight down to three point fifty without the
hatred of the mosque that we're seeing out the right.

Speaker 2 (38:00):
And we talk about some companies. We talked about AMD
before the break, but this is a company that has
just gotten absolutely hammered. They were in the two forty
amnd right that we call it the cousin of the
video because it's actually the cousin literally literally literally and figuratively.

Speaker 1 (38:17):
Uh.

Speaker 2 (38:17):
But this this company is actually pretty cheap relative at
this point. I mean, their ford price I think was
a thirty thirty five. They do have earnings. I think
that's an interesting company where you could potentially get your
feet wet.

Speaker 3 (38:32):
Yeah, and it seems like it did not want to
go lower than one hundred. I saw trading around ninety
ninety five to around one oh five. It did not
get lower than ninety five.

Speaker 2 (38:40):
It was hard off that ninety six level for sure.

Speaker 3 (38:42):
And it's Ford pe ratio is about twenty three currently.
It's a cheap thing. It's a cheap, cheap company right now.

Speaker 1 (38:48):
Yeah, we talk about a lot of stocks on this show.
We're not recommending these stocks. We're simply making observations. We're
showing areas. Eventually, we don't know your risk tolerance, we
don't know your objectives. These are not recommens we're making
for you. No, you'd like to know what our recommendations
are place, come see us.

Speaker 2 (39:05):
But this is a stock that's definitely on the RS.
I sold off everything. It looks like it's gonna keep
going down, and so that's that's the question is whether
it will continue it slide down. This is something that
was at two twenty all the way down to that.

Speaker 3 (39:19):
I mean it's something that we used to own around
one hundred and eighty and we saw that four pe
ratio to thought, hey, you know what, this is getting
really really really expensive.

Speaker 1 (39:27):
Hey. My argument for a tech stock would be Dell.
Dell Computers. We are about to come to the end
of Windows ten being supported, which means anyone that has
Windows ten is either going to upgrade, and if you're
going to upgrade, you might as well get a new PC.
So I think there's a couple of analysts who believe

(39:49):
we're about to embark on a upgrade cycle, and Dell
is telling it nine times earnings. Wow, nine wow, So
I don't know.

Speaker 2 (39:59):
By the way, and on the way into the office,
I had to almost remind myself that. And this for
the listeners too. PE ratios are dependent on industries, but
not only industries. They're dependent on subcategories of the industry.
Like Dell. You could say, just on the faith value.
It's a technology company, yep, right, but it does not
deserve the same growth rate as an alphabet no, right,

(40:21):
So a PE of an alphabet should be higher than
a Dell, right. And so that's when you're looking at
PE ratios. Obviously, something like a Verizon or McDonald's should
have a lower PE relative than the market you would
think because they're not businesses that are growing at the
same rate of others as the S andp on hold
because the other business are technology companies.

Speaker 1 (40:41):
You know that.

Speaker 2 (40:42):
And it's all just hypothetical. It's pressed price to magic ratio.

Speaker 1 (40:47):
Oh absolutely, absolutely, just a guide. It's just just one guide.
We look at that, we look at the technicals, we
look at the earnings, we look at the dividend growth rate,
all kinds of things coming into whether or not you
like a stock.

Speaker 2 (41:00):
But it's like if you were trying to compare a
Verizon's pe to an Apple and say, oh, this stock
is just so cheap. Well, there's a reason it's cheap, right,
There's there's a little reason that they're only expecting this
much growth because that business model can only do that much,
whereas other ones that are just expecting more.

Speaker 1 (41:15):
Right, because up until the last twelve months, Verizon is
where you send money to die, you know, I mean,
five six percent, that was it. That's what you're going
to get, right, Same with AT and T right, same thing.
And then they both had really strong moves within the
last twelve months or so because they're I find they
found ways.

Speaker 3 (41:33):
To lie to people.

Speaker 2 (41:35):
I mean, really, that's bind people. That's really been.

Speaker 1 (41:37):
To get us out of our money.

Speaker 2 (41:40):
It's really been value though as a whole. That's I mean,
money has been dead for two years. It feels like
until recently you've had some of these big principal appreciations
that kind of help make up for the fear of
missing out that you've seen all these other I mean,
if you're a value investor over the last five years,
you're you're not loving yourself now.

Speaker 1 (41:58):
And we thought last year's value probably would dominate, but
it didn't. Know, and this year it's so far it has. Yes,
value has become the place to be. And generally, when
it's a risk off type of market, which is what
we have right now.

Speaker 3 (42:11):
Risk off, value performers will.

Speaker 1 (42:13):
Risk off just being not necessarily taking all of your
risk off, but reducing your risk, yes, taking time of
the risk off.

Speaker 2 (42:20):
And when you're talking about value, talk about yields. And
this is something we'll talk about in financial plans a
lot where a client will come in and they'll saying,
I want my investment portfolio to kick off this amount
of interest. But what you have to realize is if
you're getting more than maybe five or six percent yields
at these rates, that yield's coming with some type of risk.

(42:40):
The principle itself.

Speaker 1 (42:42):
Oh yeah, the higher the yield, the more you have
to look at it twice.

Speaker 2 (42:45):
So just because you find a twelve percent yield doesn't
mean that it's not a beta of the market. I mean,
you could still be losing good amount of money. I
mean normally that I've seen is if you have a
yield more than ten percent, you're probably just as volatile
as you would be in them.

Speaker 1 (42:58):
Well, company is probably in trouble what's happening.

Speaker 2 (43:00):
Well, you know, you have these funds I'm saying, you know, like, oh,
these closed end funds and high income funds that can
get close to these nine to eleven percent because they
have a thousands of convertible bonds in them and they
have you know, a lot of different option weight, they're
leveraging at a higher There's a lot of things behind
the hood volatility. But people will just think that, oh,
I'm just going to get my eleven percent and that's

(43:22):
going to be like, no, there is once you get
above ten. There's definitely a lot of risk associated with
that principle.

Speaker 1 (43:27):
No question.

Speaker 2 (43:28):
So it's not just oh, I need to find the
highest yield.

Speaker 1 (43:31):
You say, And people say, well, wait, so this pays
eleven percent, so what if it goes up and down?
And yet there was an ETF that we're familiar with
any office that drop about fifteen percent in about six
weeks when the market corrected, and uh, well only wish
one that is, and so there once you're a dividend
for an entire year in six weeks. So it'd be cautious.

Speaker 2 (43:54):
And I hear this all the time when we do plans,
like I need this amount of money, and it's there
are other ways to accomplish what you want to do
without having to risk your principle in something that's not
a sustainable yield.

Speaker 1 (44:06):
Yeah, I agree with you. Just to finish up on
the market, China down three percent last week, first time
it's been down in seven weeks. Wow, They've had a
heck of a year, up over twenty percent for the year.
Oil up a dollar thirty last week, finished at sixty
eight to thirty, Gold up another twenty seven dollars thirty
twenty three, two three.

Speaker 2 (44:26):
Definitely what's helped gold this year, I mean year to date,
the dollar has actually gone down in value relative to
other currencies, so that is something that's going to help gold.
Just historically, we also saw that gold continue to go
up even when the dog goes up. So yeah, that
trend isn't that correlation isn't perfect right now. But for
the most part, I think this last surge probably had

(44:46):
to do with the weakening of the dollar.

Speaker 3 (44:48):
You know how Costco was selling the gold a little
while back. Yeah, I was reading some article about this
guy that would go go to Costco buy the gold
with a five percent cash back credit card and then
he'd take it to the spawns shop and he'd go
sell it to them for the exact price he just
bought it for and make the five percent off the
rewards points well arbitrage.

Speaker 1 (45:05):
No, okay, but I've sold gold to the gold.

Speaker 3 (45:08):
And they usually they usually give you a disc discounted. Great.

Speaker 1 (45:11):
Oh yeah, pretty significantly, right.

Speaker 3 (45:13):
And that's kind of why I thought that. I kind
of I kind of overlooked the articles because of that reason.

Speaker 1 (45:18):
I just cute thought. But not gonna It's not gonna
happen in the real world. You know. Housekeeping from last week,
we talked about the large amount of soybeans that we
export to China and how badly they needed soy beans
and we weren't sure why. Thanks to our client, Mike,
Thanks Mike, he called in. He said, you know, tofu

(45:40):
is made from soybean. There you go, the ground so
crushed soy beans is tofu and tofu is a huge
part of the Chinese diet diet, so they don't produce
enough soybeans in China to satisfy that, so they get
them from us. And how about that pole, did you
guys see that CNN of all people CNN poll that

(46:02):
showed the approval ratings of Democrats twenty nine percent, the
lowest in the history in the thirty three year history
of this poll. Wow, the lowest in history, and Trump,
while under fifty percent, has its highest approval rating ever.
It's kind of interesting. And you know, yet, eighty percent

(46:24):
of American people do not want men playing women's sports
and if there was not a single Democratic senator who
would vote for that, how weird is that? That's party
before a country right there? Yeah, and I'm not that's
not a statement about Democrats. I'd say the same thing
if it was a Republicans doing it. That's party ahead

(46:44):
of your country. When eighty percent of the people want
to go one way and you're sitting there going nope,
not going to go.

Speaker 2 (46:51):
They have one job, represent the people, Yeah, and now
they don't.

Speaker 1 (46:54):
They never have. And it's not just Democrats.

Speaker 2 (46:56):
The system isn't set up for them to do it.
And they're always going to take advanceage of this bogus,
corrupt system until someone actually has the guts to fix it.
And that's what we're seeing and that's why people, especially
the Democrats, are getting so mad about it.

Speaker 1 (47:09):
Well, and then the California governor news regardless what you
think about it comes down and goes, yeah, I'm a
former athlete and I think that's wrong. Oh my goodness.
They came down on him like a ton of Newsom
said no, it's not right for men to play women's sports,
and his party came down to him like a ton
of bricks.

Speaker 3 (47:24):
Newsom's kind of He's coming.

Speaker 1 (47:26):
Back to the president back with the second half of
the show right after this break. Welcome back. This is
our number two of the Money Matters show. We're still
doing the March Madness Money Matters right, That's.

Speaker 2 (47:38):
Yeah, I mean the big games just started.

Speaker 1 (47:40):
The Interesting party. The Interesting Party is next Sunday will
also be March Madness, right, the next round, the Sunday
before the National Championship games.

Speaker 2 (47:50):
Like it, they play on Saturday night.

Speaker 1 (47:52):
Crazy. They play Saturday, and then they play Monday, and
then they play Monday. So sunny, like I said, will
be the day between the two the National champion Game.
Good job, Dave, I thank you, but a bound to
get something right eventually. I appreciate that. I appreciate your
voter support. I appreciate your always having my back, you know, yeah, yeah,
I feel someone's got to do always.

Speaker 3 (48:13):
I always have another side of his trade.

Speaker 1 (48:17):
Hey, how about Boying? Interesting stuff on Boying.

Speaker 3 (48:20):
I've been looking at that.

Speaker 1 (48:21):
Okay. Uh. The DALK component down ten percent over the
last twelve months. It did move five percent higher at
the open on Wednesday after the CEO said their cash
burn is easy and factory activities improving. On Friday, with
the Biggie, Bloomberg reported that President Trump shows Boying instead
of Lockey for a contract to create the next generation fighter.

Speaker 3 (48:42):
GRAT twenty billion dollar contracts yep F forty seven.

Speaker 1 (48:45):
Boying jumps five percent to an eight month high, Lockey
Martin down seven percent, close to a fifty two week low.

Speaker 2 (48:54):
Yeah, I mean another thing I see on your paper
is Intel. Intel definitely had an interesting week. It's uh,
finally getting some legs to it, and then on the
back half of the week didn't have much legs after that,
but the new CEO having some rally. But what I
really thought was interesting is that he does not want
to do that joint venture with the video and he

(49:14):
doesn't want to spin off the foundry arm.

Speaker 1 (49:16):
He doesn't want to become the manufacturing arm for those guys. Well,
he definitely does want to become the manufacturing. Well, he
doesn't want them to have ownership entry.

Speaker 2 (49:25):
Yeah, there's gonna be a joint venture between the video
I think AMD and Clalcam.

Speaker 1 (49:29):
I believe, yeah, yeah.

Speaker 2 (49:32):
But they said he didn't want it out of it.
He didn't want it yet, right, but he didn't want
to do the joint venture. He still wants to be
like just the foundry. He wants to, like you said,
be the manufacturer, not sell and part of it to
do it.

Speaker 1 (49:44):
I saw a report this past week again on Intel
and Todd you said, actually had a good week and
at the end of the week about sold off a bit,
but it had as up thirty percent in the last
twelve months. Yeah, we kind of left it for dead.
The Dow kicked it out of their index. Nobody wanted
anything to do with it. So but I noticed a
report that six institutional investors had increased their stakes in

(50:09):
Intel within the past ninety days, six institutional investors adding shares.
So obviously they're pleased with the new CEO, and I
think I think most people are.

Speaker 2 (50:19):
And my philosophy and thesis on this entire company and
the entire time has been how do you build a
billion dollar factory and you're going out of business. Yeah,
you know, it just doesn't seem like something I've ever
seen before. You it had to be really terrible management
somehow build that much.

Speaker 1 (50:36):
Right, But think of where the company was when those
when that factory was on the drawing boards. The company
was in the dow. It was in the forties. Yeah,
the share prices was in the forties. It was a
very different company when they were drawing up the plans
for that plant than it is today.

Speaker 2 (50:53):
It is, and to be fair, when you look at
Taiwan when they started building a plant versus where they
are today, it's the exact opposite of where Intel is now.

Speaker 1 (51:02):
I can see that. I could see that, we can
summarize the market. We didn't look at that. Again. Last week,
we broke a four week losing streak with actually a
last minute rally or last fifteen minute rally on Friday
kind of helped bail us out. The S and P
five hundred closed twenty eight points higher, which doesn't seem
by like much, but it was enough to end a
four week losing streak. Doll was up one point two

(51:25):
for the week. That was the leader this week. S
and p up a half a percent, Nasdaq, which is
of course technology stock up to tenths of one percent.
Russell two thousand, the worst performing index this year, was
up four tenths of a percent, and the best performing
index this year the Russell of the equal weight to
S and P five hundred, up six tenths of one percent,

(51:46):
so it came in second place to the Dow.

Speaker 2 (51:48):
And on bitcoin this week it was up about fifty
basis points on the weeks now eighty four thousand. Trump
had some con well, I think he went to a
conference or something. I don't even know, but he says,
easing regulations, what I'm gonna do, and I'm not going
to sell any of the confiscated bitcoin. Those who don't
know the government has a lot of confiscated bitcoin from

(52:09):
FBI eight thousand, I think, yeah, uh, and then that's
just from you know, when they do I don't know,
criminal actions and they see stuff. I mean, the government
has a couple of yachts in their in their portfolio.

Speaker 1 (52:22):
They do know, they don't know how.

Speaker 2 (52:23):
To sell them.

Speaker 1 (52:24):
So when you confiscate a bitcoin, what do you do?
Journal it to your account?

Speaker 2 (52:27):
Yeah? I think I think you journal it to the
treasury account.

Speaker 1 (52:30):
But if you're wanting to jingle your bitcoins, that's not
gonna happen.

Speaker 2 (52:33):
Yeah, it is very are they are they allowed to
sell it if they want to. Of course they can sell.

Speaker 1 (52:37):
It, so absolutely, whatever they want to do, just in
the open market, you get dump it all. Yeah.

Speaker 2 (52:42):
And then RP and I think that's what they were doing,
and he's saying like, we're not going to do that anymore.
And then on top of that, the SEC dropped their
lawsuit on x RP. That's ripple.

Speaker 1 (52:53):
Is that a big deal?

Speaker 2 (52:55):
It was the sum I mean, it made the Ripple
pot from two twenty two to two fifty, which is
a pretty sizable move. But it's sold off about half
of that throughout the rest of the week. So some
believe it is a lot of people think that this
Ripple thing is something that the economy needs. I don't
see it. I think we are completely digital right now.
I can send money like that. I don't see how

(53:17):
I need a micro payment. I feel like I already
have them. But apparently Ripple is somehow you can do
more transactions than you would need to otherwise.

Speaker 1 (53:27):
Right now. It's funny because a friend of mine deals
with people in Mexico, and they come up here to
buy good thrownichure, things of that nature, and they'll walk
into the store with thirty thousand dollars in cash and
one hundred dollars bills. And it's of course, we in
America todd to your point. We don't know what to

(53:49):
do with cash. We don't deal with cash anymore. I
have one of those coin yards at home where I
put I don't think I've put anything in that in
the years. I mean, it's sitting there, half full whatever,
but there's nothing being added to it, right. I can't
remember the last time I had changed. If I do,
it's annoying.

Speaker 3 (54:05):
I have the same cup in my room with the
same coins that I had last two years. I haven't
added anything.

Speaker 1 (54:09):
I mean, if I somehow get changed, I don't even
nobody just throw it away. I don't remember that. But
generally there's a little thing on the counter. Put it
here for the yeah, for this period of Actually.

Speaker 2 (54:20):
That's so funny.

Speaker 1 (54:20):
We could never throw a change. Yeah, Well, because it's money, right, we.

Speaker 2 (54:24):
Could throw away like happy in food, even though that's
money too.

Speaker 1 (54:28):
Yeah, we can't throw a change, No, it's.

Speaker 2 (54:31):
It's a behavioral aspect of humans.

Speaker 1 (54:33):
It's a good point, but everything's everything anyway. That uh,
they were filling out all of these forms for this
you know, anti money on this guy with thirty thousand
dollars and one hundred dollars bills and he says, you
Americans are so funny about money. He said, in Mexico,
it's all cash.

Speaker 3 (54:50):
Yeah, seriously and interesting.

Speaker 1 (54:52):
Yeah, because I thought that when bitcoin came out, it
was really going to be a big win for the
drug dealers, and it was for a while. But now
as I understand that blockchain can be traced and can
go right to it and grab it, it.

Speaker 2 (55:06):
Never was a big thing for the drug traders. It's
big things for online drug.

Speaker 1 (55:09):
Traders, Okay, to be fair, okay. And so somebody that's
advertising prescription drugs.

Speaker 2 (55:15):
Or right, like if I was trying to buy opioids
from you know, a place in Florida, sure, you know
they and there's people who did that and it was
called it was called the Silk Road, and the Silk
Road was I think.

Speaker 1 (55:26):
We probably America fourteen, Did you see the special on
American greed? Believe there's one hour special about how these
kids in Florida just got so rich.

Speaker 2 (55:34):
Yeah, doing that and there's a lot.

Speaker 1 (55:37):
Yeah, I means taking it to Tennessee.

Speaker 2 (55:39):
If anyone wants a fun documentary, I mean, watch a
couple on the Silk Road and how the FBI shut
that one down. And that's a really interesting.

Speaker 1 (55:46):
Storycause speaking of the Silk Road, when my daughter was
in college about twenty years ago, my daughter was in
college forever twenty one was one of the top retailers.
Last week their bankrupt I don't know how they're going
to close all the stores. They're blaming Chinese retailers for
their demis and I think you too. I think you

(56:08):
two have something to do with that.

Speaker 3 (56:10):
I don't buy anything, do you? You don't buy anything
from them? But yeah, definitely like.

Speaker 1 (56:14):
You don't buy from the Chinese retailers.

Speaker 3 (56:16):
Not really, No, I know you Todd loves, but which
companies took them out? I mean you gotta think sheen right.

Speaker 2 (56:23):
Yeah, to be fair, I.

Speaker 1 (56:24):
Don't buy anything like a year, But do you get
good quality stuff from these companies or is not?

Speaker 3 (56:30):
No, you're supposed to buy stuff that you don't want
to like.

Speaker 2 (56:33):
Okay, I'm gonna off how you guys like are act
like the half the things from Amazon isn't coming from China,
Like you guys are hilarious.

Speaker 1 (56:39):
Well, they're manufacturing in China, but they're not, you know,
so what do you there's still coming from China. I
think the thing with Timu is that is that it's
knockoffs and second quality stuff.

Speaker 3 (56:50):
Like I would buy a soap dispenser from Timuy. It
doesn't really matter, right, right, I'm not right yet. I
don't know about toothbrush I don't. I don't trust it's
that much.

Speaker 2 (57:00):
But well, not like a tooth brush holder or something. Yeah, right, okay,
but yes, at the end of the day, they use
child labor, yeah, and they can. They pay people way
less than what we would think is even like we
think it'd be called slavery. And so that's why they
think it's unfair because they have to pay American workers
or other workers in other countries that have at least

(57:23):
like a three dollars minimum wage, not China slave you know,
labor that's like fifty cents a days and.

Speaker 3 (57:31):
The workers are like six years old, and the workers
are fine with that.

Speaker 1 (57:35):
Yeah. I really was not looking for a moral judgment
on these people. I was thinking more about the quality
of the products you get. Well, you get to buy
a products where the quality is kind of universal, that
doesn't really matter.

Speaker 2 (57:45):
I wouldn't say it's that much worse quality. It's more
it's like where how it's getting built and where the
sources are coming from. But yeah, I mean it's definitely
not the same quality.

Speaker 1 (57:55):
Speaking of international interesting report on Friday, FedEx already twenty
percent off this high, twelve percent lower at the open
on Friday to a new fifty two week goal after
the company slashed it's full year guidance citing weakness in
the US industrial economy. Ups down three percent in sympathy,
close to its fifty two week high. We have said

(58:15):
before FedEx is a barometer of global activity, and if
they're hitting a fifty two week goal stocks plumbing, that
can't be a good sign.

Speaker 2 (58:26):
You know what I'm interested? You got you got two
grand kids, and I can't imagine your boy is a
WWE fan. But TKO, I feel like WWE is getting
it steamback these wrestling things. Seems like the young kids
are starting to like it again, and USC seems to
always do its job. Over the last couple of years
that sucked to Go has come off its high a

(58:47):
little bit. But what what do you heard? Have you
heard anyone talk about WW?

Speaker 1 (58:52):
No, not a word, not a person.

Speaker 3 (58:53):
I've heard that there's a new competitor to WWE that's
actually getting some traction. How far off its size is
toge t k O uh.

Speaker 2 (59:01):
No, that new one. I think it's it's a e
W or something.

Speaker 1 (59:04):
Or something like that.

Speaker 3 (59:05):
It's I don't really. I think the biggest thing that
that holding company has going for them is UFC.

Speaker 2 (59:12):
Let's put it this way. I don't think so, because
really Logan Paul is part of WWE, okay, and people
love attention. That's what WW is all about. It's just
an attention business.

Speaker 1 (59:22):
And that you look at that guy's bio and it's like,
how did this guy ever become a big deal?

Speaker 2 (59:27):
And shout out, shout out to Matthew Matthew Greenberg. He
was one of the editors on the Paul American series.
You can now watch it streaming on the HBO Max
service Paul American, Paul America, Yeah, to play on all Americans.
Of course, their last name is Paul, Logan Paul and
Jake Paul. Those who don't remember Jake Paul is that
guy who fought Mike Tyson Logan Paul is the other

(59:50):
one that's a YouTube star. He made all his money
doing YouTube stuff and Jake was part of that too.
But there they're a tension. How do you they make
their money off attention? I was saying, they do it
a lot of different ways, wrestling, YouTube, whatever. That they
own the Prime Drink. If you've seen the Primes in
the gas station, there's energy drinks, well not energy, but

(01:00:11):
they're like a Gatorade type of drink. They have a
lot of different things. But yeah, Matthew was one of
the editors on that show, so I haven't seen it yet. Hurt.
It's good. But it's really interesting when you look at
just the attention economy, you know, as you've seen some
economists talk about that, right, attention economy. It's really what
has become the value generator off of some of these businesses.

Speaker 1 (01:00:36):
It's amazing. My daughter in Los Angeles for the last
fifteen years and she knows a number of these people
are her friends and what she's an influencer. What's that right?
And all you do? That's all you just They just
get on there and get attention for whatever reason. However
they do it, and and and the product companies pay
them off the money.

Speaker 2 (01:00:55):
And for those who said would why would companies pay them?
It's perfect. I mean, if you're someone who's selling, for example,
a girl's product, and you know that I'm going to
sell way more by going straight to Kim Kardashian to
ask her to recommend my product to all her millions
of followers, rather than going to an advertising agency and

(01:01:18):
asking them to somehow do search engine optimizing. So when
females search for something like around this product, my product
comes up. I mean, that's how advertisers do, That's how
Google makes their money. They'll say, hey, well put your
product up before other products if they search for these
type of keywords and they're a female in your demographic
and it's your type of clientele. Facebook does something similar, saying, well,
tailor your ads to your demographic that you want to

(01:01:40):
go to. But how much better is it when you
have the actual person that someone cares about. They say,
I value this person's opinion so much that if they
tell me to buy it, I will no matter what,
even if I don't think it's good for me. And
that's why advertisers are way more willing to pay an
influencer to do it because the results of that advertising
dollar goes so much further.

Speaker 1 (01:01:59):
My eight year old grand into soccer, you ask, and
do you want to soccer? A little soccer humor from
an eight year old to eight year old soccer humor? Right?
What uh? Why did Ronaldo change his jersey? He didn't
want to be messy nice and you know, but you

(01:02:20):
have to know soccer or it makes no sense.

Speaker 2 (01:02:22):
And then talk about soccer. Next year, twenty twenty six,
North America gets the FIFA World Cup.

Speaker 1 (01:02:28):
Okay, man, and.

Speaker 2 (01:02:29):
Us USA gets an automatic bit, so we're in it.

Speaker 3 (01:02:31):
You see how Dave kind of just dismissed that. Yeah
he doesn't no, no, no, I said, okay, but the
World Cup is I dismissed it.

Speaker 1 (01:02:41):
Let me do it again, Todd, go ahead tell me.

Speaker 2 (01:02:43):
Next year twenty twenty six, the FIFA World Cup is
coming to North America.

Speaker 1 (01:02:47):
Oh wow, you're kidding, you're kidding.

Speaker 3 (01:02:49):
Yes, amazing to get ticket.

Speaker 2 (01:02:53):
I'm getting tickets. I don't think I know that. I
wasn't alive when the last time it's here. But it's
gonna be a hue huge deal. For not just Ari Cootty,
obviously Canada and Mexico. But it's got to be a
huge deal. I think for twenty eight we get the
Olympic Games, no.

Speaker 1 (01:03:07):
Number one sport in the world. I mean it's a
you know, easily by far, and it's reason. It's easy
to understand why, because it doesn't cost any money, so
anybody can do it.

Speaker 3 (01:03:16):
My apologies, Dave, I thought that you were dismissing it.
I dismissed Todd's comment the other day before this radio
show because I personally don't really care about soccer. I
don't think most Americans do.

Speaker 2 (01:03:26):
I was I was also bringing it up where like,
you know, a lot some Americans are like, you know,
we got too much foreigners and we're gonna have a
lot more foreigners.

Speaker 1 (01:03:32):
Next year here. Yeah, we are coming.

Speaker 2 (01:03:36):
Coming from ball over.

Speaker 1 (01:03:39):
Something, you know, speaking of whether you can believe it
or not, how about by d Chinese car company Dreams
Electric Build Your Dream the electric car company, one of
the biggest electric car companies in the world, bigger in
Tesla in China and China, big bigger in Tesla in
Mexico by far, doing some European selling. It claims last week,
it claims it it's an electric vehicle that can that

(01:04:03):
can be excuse me? They claim they can charge an
electric vehicle almost as quickly as it takes to silicar
with gasoline five minutes.

Speaker 3 (01:04:11):
I don't believe it.

Speaker 1 (01:04:11):
Five minutes they can charge an electricical I don't know what.
And they didn't elaborate. And it's so it's so Chinese,
you know, I mean, or so typical of Chinese companies
because you get it's in pieces. You don't know if
it's true. Uh, it's kind of like a deep seek
thing you know that upset our world for an hour
and it's but BYD has a can recharge? So is

(01:04:33):
it a is it a high speed charger either some
kind of supersonic charger?

Speaker 2 (01:04:39):
What is it?

Speaker 1 (01:04:40):
Yeah? You know, but no they.

Speaker 3 (01:04:43):
What they do this week? How's it stuck?

Speaker 1 (01:04:45):
It? All time high?

Speaker 3 (01:04:46):
All time high?

Speaker 1 (01:04:47):
Yeah?

Speaker 3 (01:04:47):
Uh, I talked about it to you earlier this week. Yeah.
Loosid motors they were up about twelve percent this week,
and I once I dug a little bit deeper. The
reason for it is because they finally on February twenty fifth,
Peter wrought Rawlinson stepped down as the CEO, and then
this week Mark Winterhoff he's going to be the He
was the company's chief operating officer, has now been appointed

(01:05:09):
as interim CEO, so they're thinking that maybe he's going
to be able to go in change a couple of things,
hopefully started making some money, you know.

Speaker 1 (01:05:15):
Arizona, Arizona Electric Car Company. We hope, we hope they do.
We Yeah, definitely, CASA wanted to be successful. Sorry neighbors,
Yeah I did. I'm the cars not in my opinion,
not that attractive, but some people seem to like it
for whatever reason.

Speaker 3 (01:05:29):
I've heard a lot of people look at it as
the luxury evy.

Speaker 1 (01:05:33):
That's what they portrayed themselves, asked. And it's kind of
wide and it's kind of low profile. Yeah, it's just
a little it's a little different on definitely different, definitely
not sporty. Were like kind of like a Cadillac Fleetwood
back in the day, if you will. Also, uh, Arizona,
speaking of the electric vehicles, I think we talked about
this last week. The largest electric are the largest battery

(01:05:54):
manufacturer in the world, Arizona. Yep, gonna open in Queen Creek.

Speaker 2 (01:05:57):
Oh yeah, you did say twenty early next with a twenty.

Speaker 1 (01:06:02):
Twenty twenty seven I believe early twenty twenty seven.

Speaker 2 (01:06:04):
Yeah, when I was on the way to California last week,
I was obviously headed west, and there's just you realize
how much open land there is. Yeah, I mean the
amount of room you could build. And it's not like
it's like national parks.

Speaker 3 (01:06:16):
Either, and the just put we just put windmills out there,
and which there's a lot.

Speaker 2 (01:06:20):
Of farms and land.

Speaker 1 (01:06:22):
All you gotta do is called vermal Land. They'll take
care of you.

Speaker 2 (01:06:25):
Oh, I'm sure there was a lot of for sale land,
but you've seen those semis all the way to Oh yeah, yeah, Vermland.

Speaker 1 (01:06:31):
I think called Vermland, isn't it Verma Yeah?

Speaker 2 (01:06:35):
You know, it's like it always thought about, but it'd
be cool to build your compound. Did you think about
it for like two more seconds and you're like, yeah,
but what do you do out there's nothing gone? Absolutely,
But if you're thinking about like a manufacturer or something
like that, it starts to maybe make sense. And like
we've already seen with Taiwan's semiconductor making the largest foreign
investment in the United States, it's here in the Arizona right,

(01:06:56):
and so there is something to say that Arizona is
being looked at as almost the Silicon Valley on fire.

Speaker 1 (01:07:03):
Well, Phoenix in particular has just caught fire. I mean
they're growing like Austin, Texas grew.

Speaker 2 (01:07:09):
I mean, it's just exploding, where Austin's actually declining.

Speaker 1 (01:07:12):
I've heard.

Speaker 2 (01:07:15):
Housing prices are going really really Yeah. But yeah, Phoenix,
I've often said places.

Speaker 1 (01:07:21):
I've often said embraced the summers into some because it's
what keeps the population manageable. But look at Phoenix. That
summer is from hell and it hasn't stopped anything.

Speaker 2 (01:07:32):
Yeah, Phoenix heats way worse than Yeah, you guys don't
get the rain up there either.

Speaker 1 (01:07:37):
No, that's my train either, and it's it's a thousand
feet lower, so you drive down to Phoenix. Actually yeah, technically,
but it hasn't stopped the growth at all. The growth
is just exploding up there. I don't think it has
any chance of catching l A, Chicago or New York
for population, but it's it's putting Houston in the review
mirror pretty quickly.

Speaker 2 (01:07:57):
I mean, I definitely think it's going to be the
third or fourth largest.

Speaker 1 (01:08:00):
And fourth it's already fourth yeah, past Houston, past Houston
in Philadelphia within the past couple of years.

Speaker 2 (01:08:06):
Well, who's three Austin.

Speaker 1 (01:08:07):
That three would be uh, Chicago or No. Three would
be LA or Chicago or New York. One of those three,
New York probably number one, Chicago's probably number two, LA three,
maybe I don't know. Somewhere in there.

Speaker 2 (01:08:19):
Always three York and LA were number one.

Speaker 1 (01:08:21):
Those are the three. Those are the three biggest smsas
that It's called standard metropolitan statistical area. And if you're
wanting to know the size of the city, you needed
to look up the standard metropolitan Statistical area because if
you Google the size of Tucson shows you a four
hundred and eighty thousand or something, which is just stupid.
So you've got to get the whole metro area in

(01:08:45):
order to in order to get that.

Speaker 3 (01:08:46):
Talking about new CEO's Nike Elliott Hill, he came in
around October of last year and they have just not
been able to get out of their own way. They
dropped another five percent this last Friday because they report
of their earnings report, which revealed a nine percent decline
of revenues down to eleven point three billion dollars. Yeah,

(01:09:07):
just not looking good for Nike right now. But at
the same time, where's that company going? They got the
contracts with NBA. They just made a contract with Skims.
I think that if you want to take a shot
at this thing, maybe you do it now.

Speaker 1 (01:09:18):
Oh they say, you know, it's a dowstock, which is
which is which is nice? It's always nice. Although Ge
was a dowstock before it was kicked out with the
dowstack for was kicked out and Intel was the dowstack
force kicked out. So so much for Dow being the
krembill cram right, and they're coming to going. But yeah,
Nike's been struggling and they warned that their sales are

(01:09:38):
going to fall in this cur continue to fall and
continue to fall. And the foot Locker lost four percent
on that news. Uh. Obviously foot Locker sells an awful
lot of Ralph Laurent. Uh do that you bring up
ra speaking a lot? Right? Yeah? Twenty percent off. They're

(01:09:59):
high on two today. Goldman Sacks upgraded the shares to
a buy, saying they have limited exposure to tariffs. Right,
that's exposure to tariffs.

Speaker 2 (01:10:09):
I was I was looking at that company for a
while because they had just run up like crazy. They
were dave in August at twenty four they were one sixty.
They ran up to two eighty by February one sixty
to eighty. Yes, oh my, you know, five six months
and now it's down from two eighty to two twenty.
So I'm coming out with that was that was interesting.

(01:10:31):
But yeah, I mean in one week they had lost
almost twenty fourteen percent. I mean they they uh and
that was that was coming off their Ernie's report, that
which which caused that initial spike. But yeah, Ralph Lauren,
I mean I always have a hard time valuing retailers
that sell close because it's such a hype type of

(01:10:52):
business totally, and you never I mean, I'm not the
type of person that changes what I wear. I mean,
I'm just gonna keep buying the same type. But there's
most fashioned. That's how it is, right, I mean, it's
a cyclical business. So it's like, how do you value
something that one time, you know, this group of people's
buying and then they switch over here, and then how
do you even put a growth rate?

Speaker 1 (01:11:11):
It's very trendy. It's very very much wish you have
away the wind blowing it's got to be extremely difficult.
I've often thought that about trying to staff restaurants. How
do you know? How do you know what's going to
happen that night? I mean, I've been in restaurants whether
we're just like no employees and the place was packed,
and I've been in restaurants where there was nothing but employees.
It's got to be really challenging to try to have

(01:11:33):
the right number of people for the crowd you're going
to get. Unless you're taking reservation.

Speaker 3 (01:11:38):
Got you got reservations, but you've got so much data
as well, just.

Speaker 1 (01:11:41):
Like unless you're taking reservations.

Speaker 3 (01:11:44):
Okay, fine, look at your sales numbers. Then if you're
not taking reservations.

Speaker 1 (01:11:47):
Very like that, I can tell you more on the Oundsnade.
We're kind of put against the break. We'll talk a
little bit about we'll come back.

Speaker 3 (01:11:54):
Sebastian Bard. Seeing him here with David Sherwood and Todd
Glick Junior.

Speaker 1 (01:12:00):
We get to take out every night of the week
because it's just the two of us. It's easier. My
wife works, I work, it's just easier. I can't tell
you I go in the same restaurant on the same
day every week, Like Monday is a certain restaurant, Tuesdays
a certain restaurant Wednesdays. You know, I learned early on

(01:12:22):
the big decision in America every day is what's for dinner? Right,
what's for dinner? I solve that problem. I don't want
to have that discussion anymore. What's for dinner on Monday
is this? What's for dinner on Tuesday is this? And
then every now and then we'll change it up. You know,
I'm gonna tire of that. Okay, let's replace that with this.
But we know every single night what's for dinner. We
don't have that discussion. Ever.

Speaker 3 (01:12:43):
It's a nice structure.

Speaker 1 (01:12:44):
I like it. I mean, it's taking a lot of
stress out of our life. It's the big, one of
the biggest stresses in America every day. What's for dinner?
What are we gonna have tonight?

Speaker 2 (01:12:54):
What do you want?

Speaker 1 (01:12:55):
What do you want to stop?

Speaker 2 (01:12:56):
It?

Speaker 1 (01:12:57):
Stop anyway? So that point is, as I'm in the
same restaurant on the same night every week, and different
than the number of people can be night and day,
I can walk in there. Let's take beyond Bread as
an example. I can walk into Beyond Bread like I
did Wednesday night. There was two tables, and I can

(01:13:19):
walk into Beyond Bread and there's a line literally out
the door.

Speaker 3 (01:13:22):
Are you going in at the same time, the.

Speaker 1 (01:13:24):
Same at the same time, same night? And I think,
how could you? How can you possibly staff that? That
is so challenging one of the more challenging jobs around. Hey,
let's talk a little bit about retail. I saw our H.
I used to be called restoration hardware.

Speaker 3 (01:13:40):
What's it called now?

Speaker 1 (01:13:42):
RH change, which I thought was kind of which I
thought was pretty stupid. But restoration hardware, I guess was
confusing to people because they thought it was the place
maybe where you went out of your hardware restored. Why
would they think that, right, because it's called restoration hardware.
Why would you think that's what you do there? Duh.
It's like going into burger Town and thinking they actually

(01:14:05):
had burgers. You know? Anyway, they don't. No. Changing his
name to our H. Went went to a subscription service.
It's extremely high end furniture. You don't go in there
unless you've got some gold bars in.

Speaker 2 (01:14:20):
It is such a terrible day for high end furniture
to be hard.

Speaker 1 (01:14:25):
Yeah, Restoration Harware, and I guess you ever picked that. Well,
I suppose there's there's probably a history. I probably had
probably had this rooted in a hardware store at some point.
But anyway, they changed the name from Restoration Hardware to
our H and uh, they've just gotten hammered. They've fallen
more than fifty percent since mid January. Since mid January,

(01:14:46):
Wells Fargo has had the stock Get This, Get This
has had the stock as a.

Speaker 3 (01:14:51):
Buy the entire trip, of course.

Speaker 1 (01:14:54):
And here's here's the good news. Though, they lowered their
target price, but they're keeping it a bye. I'm thinking, well, okay,
that's the good news because if you if you were
holding it for a fifty percent decline, I don't think
you'd sell it now.

Speaker 3 (01:15:08):
Or who's paying these analysts, it doesn't exist.

Speaker 1 (01:15:12):
It's self frustrated. Williamsonoma, which is Pottery Barns parent, was
only down twenty percent, which, when you consider our H
is fifty percent, that's not too bad. They did drop
seven percent on Wednesday after the company said net revenue
could decline in the coming year. Well, again, that's more
of that. We don't really see the recovery in housing

(01:15:34):
home deepot bear market territory down more than twenty percent.
Dow stock. I think that the Dow was hired this week,
probably on the back of Boying. I think Boying with
a big part of why the Dow outperformed the other indices.
But again with a thirty stock index like that, that's
why it can be pretty misleading. Well, we don't ever

(01:15:57):
follow the Dow.

Speaker 2 (01:15:58):
I'm interested what you got on a row. They got
a big pop on Friday, six percent higher now at
seventy eight dollars.

Speaker 1 (01:16:06):
On Wednesday, they and they announced that Trump Media and Technology,
the parent company of Trump's social media platform Truth Social,
has partnered with Roku and in the last twelve but
this has partnered excuse Me has partnered with the tech
company h to launch a new app.

Speaker 3 (01:16:27):
Within the Roku TVs.

Speaker 2 (01:16:29):
I don't know, yeah, probably at all, but that's yeah,
Roku has apps in their TV. It's just like Prime
and Netflix. Okay, you can then, so it'll be something
that you could click on and probably watch things through access.

Speaker 3 (01:16:42):
Direct link to Fox. Basically.

Speaker 1 (01:16:44):
Yeah, dj T stock is down more than forty percent
in the last twelve months, but it's still eighty percent
above where it was when the Dems announced Kamalo is running.
Remember how it crashed down like twelve bucks or something.
It's up around twenty right now, is.

Speaker 3 (01:16:59):
Still what eighteen dollars higher than in centtronsic value.

Speaker 1 (01:17:03):
Atrinsic value depending on who you talk to, is one
to two dollars, right, And but it's I don't know.
I think eventually stock do tend to find their fair value,
and I think I think it will at some point.

Speaker 2 (01:17:18):
Yeah, I talked about go ahead, okay, go ahead, don't
let you finish.

Speaker 1 (01:17:21):
I've been talking about I just gonna switch.

Speaker 2 (01:17:22):
Sheper Okay, Well, I was going to go to something
that is fishy too. Is the quantum computing stocks.

Speaker 1 (01:17:31):
I don't you know. I don't watch them closely.

Speaker 2 (01:17:33):
I have a I keep an eye on them.

Speaker 1 (01:17:34):
I have a client who has been cutting edge on
that for a couple of years, and he has some
of these stocks that in very low prices.

Speaker 2 (01:17:40):
I mean, and that's the thing I mean, obviously, if
you got some of these things and the pennies your
your love in your life and you don't really care
too much. But the one that I looked at this
article was really interesting. Qubit qubt. It's the ticker it's
curly trading at seven dollars. But uh, there's lawsuits all
throughout the week, and you know this is happening, like
because every single little like router, every single thing you

(01:18:03):
can find. They're trying to get investors to know this
because there is a company that's trying to get a
lawsuit on cubit saying that it's a class action lawsuit
that the company misleaded investors in telling them how much
they had capabilities on quantic computing, where their quantic computing
was actually like the current scale state of it, just

(01:18:24):
pretty much saying that they're they were way ahead of
where they actually were, and so that's what the lawsuit.
They're trying to like find shareholders and saying if you
lost money or whatever. It's also in the world of
like the fact that we live in a world where
every lawyer can sue anyone. So how much is this
truth We will find out in reality. But for those
who don't remember, this stock went up to eighteen dollars

(01:18:47):
to share, it's now at seven. So those who bought
on the way up where they lost a lot of money,
So those people are going to try to go So
there might be more pain for these companies in the
future because if a judge says, yeah, though they were
misleading investors, they were nowhere near anywhere of this technology,
that could be a issue. We talked about how there's
one company, Quantum Energy Drink that just you know, changed

(01:19:09):
the qual and they went up. You know, that's the
type of thing that as long as the company that's
say anything misleading, they're probably fine. They just change the name.
In investors, you know, that's buy or beware.

Speaker 3 (01:19:19):
Yeah, that's your fall as an investor.

Speaker 2 (01:19:21):
But when you are at management team saying no, we
have quantic computing capabilities, we are doing this and that,
now you follow yourself into like a nicola, right. And
those who don't remember that this is a company said oh,
we have this semi truck that can go six hundred
miles and it one charge. Yeah, it was never true,

(01:19:42):
and this stock went up way high because of it.
And we know what happened out for that. So just
because the company's saying they could do it, doesn't mean
they actually can. And that's what I'm gonna be interested
to follow is whether these lawsuits come out to be
trueful or if they actually do have obviously they're not
going to tell you. They don't want the competition to know,
and so you have to understand that too.

Speaker 1 (01:20:03):
On some level of trans quantum reminds me of Bitcoin
in the early days. Were you those people who bought
into it were real believers? And I think with the
quantum you have to be a real believer. This isn't
the trade thing. This is something you believe is going
to be long term, It's gonna be great. You're gonna

(01:20:23):
make a lot of money. I know the guy at
hike tumamuk with he has seven bitcoins that he paid
seventeen grand for on average seventeen grand for. So he
was early and I asked him, I got to one
hundred and eight, I actually sound and he goes, oh no.

Speaker 2 (01:20:36):
I mean necessarily it doesn't have to be early. I
mean he bitcoin was that fifteen thousand, just two years ago?

Speaker 1 (01:20:41):
Yeah, But I mean he was a believer, you know
what I mean?

Speaker 2 (01:20:43):
Though, you know that for those who don't realize bitcoin
was that fifteen thousand two years ago after it was
at sixty.

Speaker 1 (01:20:49):
Four, yeah, sixty four back to fifteen yeah, yeah, So.

Speaker 2 (01:20:52):
That you know, these are volatile things we're talking about
they go up and that's everything. Everyone loves them. But
when they go down, they could go down a lot.

Speaker 1 (01:21:00):
So if you want something that's not volatile, you want
to look at General Mills. Great segue, Those sleepy shares
worth thirty three percent off. They're high and get this
if you want a lack of volatility, same price that
they were fifteen years ago. Wow, three percent down on
Wednesday after the company reported a miss for the most

(01:21:22):
recent quarter. Everybody in portsmilk?

Speaker 2 (01:21:26):
What?

Speaker 1 (01:21:26):
What?

Speaker 2 (01:21:26):
What did General Mills do? Again?

Speaker 1 (01:21:28):
Zero?

Speaker 3 (01:21:28):
Cereal?

Speaker 1 (01:21:31):
How about Meta? How about this collapse in Meta?

Speaker 2 (01:21:35):
Well, I mean, how do you call it a collapse
or can you just call it what every mac seven's
been doing?

Speaker 1 (01:21:39):
Yeah, they're well, no, that's a good point because they're
all down twenty percent. Yeah, all seven of them except
for Tesla, which right, Yeah, that's that's a good point.
So do you think it's just going along way?

Speaker 2 (01:21:50):
Yeah? I don't think you can consider it's a collapse
for that specific company.

Speaker 1 (01:21:54):
That's a good point. But I guess it did what
nineteen consecutive days higher? I could the highest with the
most consecutive number of days up for any tech stocks.
It's nineteen eighty five or something.

Speaker 2 (01:22:07):
And I think that's what you can do with all
stocks if you pick just a vacuum, like this company
went down because of this, or the market went down
because of that, and it's like, but realistically, if all
seven did the exact same thing, yeah, you can make
a reason for each seven, but if all seven did it,
there's probably something bigger going on than just individual companies.
And that's why I hate when people attribute a Trump message.

(01:22:29):
So that's exactly why the market move. It doesn't really
work like that. No, No, definitely, it's easy to make
that correlation.

Speaker 1 (01:22:36):
Could you have to right? If you're on TV, you've
got to come up with something right.

Speaker 3 (01:22:39):
More in the max seven seven? Did you guys see
the alphabet's Google? They've acquired Whiz for about thirty two
billion dollars. It's cloud computing.

Speaker 1 (01:22:47):
Do you think it's a big deal? Yeah?

Speaker 2 (01:22:49):
I was wondering if you looked ato what Whiz was.

Speaker 1 (01:22:51):
I had it. I thought you would have no idea.

Speaker 3 (01:22:53):
No, it's it's a cloud company.

Speaker 1 (01:22:55):
I don't have any of Google. I don't know Google
in any account. I just don't care. You don't like no,
I know dislike it. I just have other things that
are more interesting. I don't know, like Cava Reord that
is not more interesting to google. The Mediterranean fast casual
chain rows five hundred percent? Are you rid of that
five hundred percent from the fall of twenty three to

(01:23:16):
the fall of twenty four. It has since given back
sixty percent of that game. Stock did open higher on
Thursday after JP Morgan raised his shares to a bye,
saying buy now and own for the long term. Cava
is thought of as a Mediterranean Chipotle.

Speaker 3 (01:23:34):
I still haven't seen one here in Tucson.

Speaker 1 (01:23:36):
No, I didn't like to try one. There's twenty Phoenix.
I think the one I saw was in La thing
It could.

Speaker 2 (01:23:40):
You imagine if you can do buy now, pay later
on stocks.

Speaker 1 (01:23:44):
It's for those for those that don't know. Instead of tortillas,
you have peed of bread. We've been Instead of Mexican food,
you have a Mediterranean food. I was in the restaurant.
I asked to in line. I said, what do you
what do you think about this? She goes, their food
is out of this world, so out of this world
delicious speak. If you want Mediterranean food on apita, you're
looking for compa grill and it's town time down to

(01:24:05):
buy it and hold it forever. We'll be back right
after this break. Thanks again for taking time out of
your Sunday morning. You're joining us.

Speaker 2 (01:24:13):
Welcome back to the Moneymatter Show. My name is Todd Lick.
I'm here with Sebastian Board CD and David Sherwood. The
Greenbergs are out this weekend, but we held down before
his the last segment, so we talked all about what
happened in the markets. Always wanted to offer our free
financial planning to anyone who's listening. We've been doing a
lot of plans back to back. We are really really

(01:24:34):
busy in tax season, but we will start to slow
up here coming into late April May. So if you
have any what if scenarios you want to build out
those our business owners obviously we can go through type
of succession planning. If you don't have a retirement plan
set up, There's all kinds of things that a lot
of people don't realize that are available to them. After

(01:24:54):
the Secure two point zero Act was released in twenty
twenty two, a lot of the rules got changed and
they're actually beneficial for business owners that want to set
up retirement plan so if you have any questions about that,
just give us a call five to zero five four
four four nine zero nine.

Speaker 1 (01:25:09):
All.

Speaker 2 (01:25:09):
We sometimes have issues with our podcasts, but we're trying
to stay up with KNST to keep those podcasts up
today as soon as possible. Those should be released on
Sunday afternoon after this show gets aired on the radio.
But if you ever have issues with the podcast, please
get us an email at contact at Greenberg Financial dot
com and we'll try to fix that as soon as possible.

Speaker 1 (01:25:30):
Greenberg Financial recently converted from a broker dealer to a
registered investment advisor. To our clients, it's irrelevant, kind of
annoying because they had just paid for work and stuff,
but it's just an internal regulatory structure change. We are
now one hundred percent fee based as opposed to having

(01:25:51):
fee based accounts and commission or do it your self accounts.
We wanted to rid ourselves to those because there were
costreame more to keep it open than it was generating
your revenue. The road I'm going down here is as
a result of that, we now are placing annuities that
are registered investment advisor annuities, and Todd tell us a

(01:26:13):
little bit about that because I was shocked. Yeah.

Speaker 2 (01:26:16):
So, fee based annuities are much different than commission nuities,
and this is something that not even I had full
grasp of, but for a listener, to keep it simple,
when you are getting sold an annuity, it has a
commission associated with it. That commission is a large sum
of money that the annuity company has to pay out
to the person who sold it. So the annuity company

(01:26:38):
has to hedge their books based on that money that
they pay out on day one to the insurance by
making a product that won't grow too much, and that's
why you have all these fees associated in the product
or lower income rates. Now, with fee based annuities, you
don't get that upfront commission that you normally get when
annuity salesman sell something, so instead you only get a

(01:27:00):
one percent advisory fee. It's not a commission, it's an
advisory fee the same way that you're one percent gets
built on a managed account, and as the account value
goes down, you also receive less as the advisor. And
what that allows the annuity company to do is instead
of them competing on who's going to pay out the
most commission to the person who's selling it. They're competing

(01:27:21):
on who's going to have the best product for the
client because they know that the advisor who's selling it
isn't looking out for how much money they're going to make.
The advisor's now looking out for what's going to be
the best for the client, and that changes the complete
game of how annuities are looked. Now, we've already talked
about the fact that if you bought annuities four or
five years ago in low interest rate environments, they're not
going to be as competitive as they are today. There's

(01:27:42):
a reason for that because the bonds that the annuity
companies buy the insurance companies are now yielding them more
so they can build better products. It helps them hedge
against that commission they have to pay. But when you
even strip out further the commission and you have high
interest rates, you could do things that seem almost not real.
Because we were going through an example where this sixty

(01:28:03):
five year old lady a million dollars was able to
get around seventy thousand dollars guaranteed for the rest of
your life a seven percent withdraw rate, and that's seven percent.

Speaker 1 (01:28:12):
It's ridiculous. I thought it was wrong right back to
you and said, is sure about this? This doesn't look
right because I'm used to the broker dealer worth annuities.

Speaker 2 (01:28:20):
Yes, with a commission annuity, you would probably expect for
a sixty five year old no more than a five
and a half percent and a half and that'd be generous, right,
And so when you get to that seven, you're like,
that extra one and a half is because the annuity
company doesn't have to pay the insurance agent this huge
commission up front, so they can then build the better product, right.
And so that's what we've been starting to look look

(01:28:41):
through and it is amazing how much better. I mean,
there's even people right now in old commission annuities that
we're going to and saying, hey, there's these fee base
annuities are going to be even better. You're going to
be able to get more income than what you were
originally going to get. So, if you have an annuity,
we have a tool that we now have access to
that will compare your current annuity with what's it out there.

(01:29:02):
And obviously the easiest ones are the ones that are surrender.
When you have to pay a surrender penalty, it's hard, really,
really hard to make a case to switch the annuity.

Speaker 1 (01:29:10):
Yeah, we don't.

Speaker 2 (01:29:11):
It almost is impossible. But when it's out of surrender,
and if you have an idea that maybe there's a
better product out there, especially with rates being better, now
come to us. We can compare those annuities. We could
also do the free financial plan to see how it
works in your plan, and then compare if there is
another option out there, if that one's better for you,
and why or why not?

Speaker 1 (01:29:29):
Now I had to explain to the client why she
had gone to two different She's a client of ours,
but she also hasn't account at another firm here in town.
We're just fine. I had to explain to her why
ours was so much better than theirs. They're a broken
dealer and they're signing a different type of annuity, a
different fee structure, and ours was enough better that it's like,

(01:29:53):
what's wrong with yours? Yep.

Speaker 2 (01:29:54):
Commission based annuities versus advisory fee based annuities. There are
two different sets and types of annuities, and that's as
simple as you could put it. One has an advisory fee,
one has commissions. And when you have these commissions embedded,
you have something that the annuity company has to hedge
themselves against When you have a fee, it's not as

(01:30:15):
hard for the annuity company to pay that out because
there's no upfront that they have to come up with,
so they can just make a good product, and that's
what it should be.

Speaker 1 (01:30:23):
And again, some annuities are appropriate for a percentage of
some people's portfolios based on the risk or not. Sometimes
they're not. Sometimes they're not appropriated, and they don't fit
what you're trying to achieve. In this particular case, this
person is retiring. They're trying to choose whether to take
a lump sum and put it in an annuity or
take the payment for life that's being offered by the company. Now,

(01:30:47):
the payment for life that's being offered by the company
is single life. So she walks out the door and dies.
It's gone. No money is gone.

Speaker 2 (01:30:57):
Not all the money.

Speaker 1 (01:30:58):
Yeah, all the money's gone.

Speaker 2 (01:31:00):
That's maybe in a spear, but in these products you
would no, no, no, no, I'm talking about her. Oh
the pension, the pension that sorry sorry sorry, the pension
that the offer.

Speaker 1 (01:31:10):
So with the annuity that we looked at today, she's
going to get instead of instead. This was one point
six million, So instead of ten thousand dollars a month,
she's going to get eleven thousand, five hundred dollars a month.
And on top of that, she is going to have
some death benefit for fifteen years, whereas with the company

(01:31:33):
plan there is no death benefit period. You get hit
by a bus on your way home from your retirement party,
is gone, your your money, your one point six million
is gone. So that that's just an option. And I
was really impressed with the numbers. You came up to, Hey,
I know a surefire away to get rich by an
NBA team, to see where the Boston Celtics sold lastly

(01:31:55):
for six point one billion dollars.

Speaker 2 (01:31:58):
And to be fair, that's probabrobably the second most valuable.

Speaker 1 (01:32:01):
For it it's more valuable than most. Okay, but think
back to when Steve Baumer bought the La Clippers. That
was twenty fourteen, eleven years ago in Los Angeles and
they were going remember they were going back and forth
whether it be one point two billion or one point
three billion, and Bomber says two billion, and the story
everybody goes, oh he is nuts. So people got for

(01:32:24):
two billion? Is it worth what the Boston Celtics are
worth No, not worth what the Boston Celtics are worth.
But it's worth a heck of a lot more than
two billion. Yeah, definitely, I'll tell you that right now.

Speaker 2 (01:32:33):
Did you get what isn't though? Is the Washington Wizards?
What about the Utah Jazz? I mean just because I
mean it's.

Speaker 1 (01:32:43):
Not that easy.

Speaker 2 (01:32:43):
I mean you have to be in a big market.
La is a great market to be in, right, it's
kind you can see Boston's a great market to be in.

Speaker 1 (01:32:49):
Well, it's kind of like this whole thing is kind
of like the old Steve Martin routine. Right, I've got
a surefireway to become a millionaire. First you get a
million dollars. Then so in this particular, kay, first time
you get a billion billion dollars? Yeah, billion dollars.

Speaker 3 (01:33:04):
Right, and then did you guys see what DoorDash did
this week?

Speaker 1 (01:33:08):
I did not.

Speaker 3 (01:33:09):
So we've talked a little bit about buy now, Pay Later.
There's a couple different options for platforms for it. You
have a firm, you have Klarna Klarna buy now pay Later.
Signed a deal with door dash that now enables me
to order food through door Dash, and I could buy now,
pay later, I could split the twenty dollars cost of
my food between four different payments over a month long
period with no interest free attached.

Speaker 1 (01:33:31):
Wow is that crazy?

Speaker 3 (01:33:33):
It's it's kind of worrysome honestly.

Speaker 2 (01:33:35):
Well, I mean, why what don't you do it? No interest?

Speaker 1 (01:33:36):
Right?

Speaker 3 (01:33:38):
Yeah, throw the money into the markets.

Speaker 2 (01:33:40):
No, it is quite crazy. The the amount of world,
I mean, this whole world we live in is based
on debt, and the more and more debt is available,
the more the world can grow.

Speaker 3 (01:33:51):
Right, And there's this more and more ghost step coming
around with this. I mean, at first you weren't able
to go and use Klarner buy now, pay later platforms
at the mall, but now I can go to any
single store in the Tuson on the outlet. MONU Know.

Speaker 2 (01:34:03):
Something that just remind me is like I don't think
a lot of people understand, like the credit access line.
When you have a joint account or a taxable trust account,
that's money. Like if you have a million dollars, you
can set up a credit access line. We do it
all the time for our clients. I don't think a
lot of people realize what this is. But it's not
something that charges you money. To set it up or
maintain it. It's just if you wanted to loan against

(01:34:25):
the value of your portfolio, you can do that and
you don't have to go through the same up. I
mean we do this for people like they want to
do bridge loans. So when they have a house that
they want to buy, but they're selling the other home
and they have to come up with the cash to
buy the home. Sure they have a million dollars, will
take five hundred buy the house right when the other
home sells. Will take those proceeds, pay off the cow.

(01:34:45):
But then you don't have to go through the bridge
loan underwriting. You don't have all these Fife's associated Oh yeah,
is the interest for that amount of period of time
that you carried the loan. So there's a lot of
unique ways to use your own money to become almost
your own financier.

Speaker 1 (01:34:59):
Why wouldn't you just set a a margin account so simple,
I mean a margin account versus the line of credit,
because I see both of them, and.

Speaker 3 (01:35:06):
I just because you can't take the margin account, yeah,
put it into a house.

Speaker 2 (01:35:09):
Because credit accessign actually loan. You're getting cash.

Speaker 1 (01:35:12):
Yeah, you get this. You can take fifty percent of
the account out. You can get this, you can do this,
you can do up to eighty percent, Okay, So that's
that's why. Yeah, and you get more of that.

Speaker 2 (01:35:20):
I'm pretty sure. I mean, I don't know for sure.
Rates are have something to do with it.

Speaker 1 (01:35:25):
I think the rates, well, the rates on the credit
access line are in the seven ish area.

Speaker 2 (01:35:30):
It depends on how much money you have, because it's benchmark.

Speaker 1 (01:35:33):
Yeah, and I think margin loans are probably more like
a nine.

Speaker 2 (01:35:36):
Ish Okay, so maybe a lower lower rate on the
cow and.

Speaker 1 (01:35:39):
The amount of cash you can get. I think probably
the amount of cash you can get is probably the
big the big one. But it's it's a little more
hassle to set up than a margin account. Margin accounts
is one piece of paper.

Speaker 2 (01:35:48):
It's it's pretty easy though.

Speaker 1 (01:35:49):
The way. God, we all want to be happy, and
we all want to be healthy. Because we're not healthy,
we're not happy and Greenberg, financially, what we're really striving
to be is profitable to you next week? Why do
you

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