1 00:02:04,284 --> 00:02:06,197 Welcome to the Tom D show for our 2 00:02:06,197 --> 00:02:06,675 financial hour. 3 00:02:07,552 --> 00:02:09,146 We're brought to you by the pre financial 4 00:02:09,146 --> 00:02:10,980 group where we make your money work for 5 00:02:10,980 --> 00:02:12,096 you. Joining us. 6 00:02:12,748 --> 00:02:15,609 Mike Johnson Chad S, and here is our 7 00:02:15,609 --> 00:02:16,801 host, Tom Du. 8 00:02:18,152 --> 00:02:19,741 Picking up a little. This is. 9 00:02:21,426 --> 00:02:24,393 This is a an album that Phil Ke 10 00:02:24,848 --> 00:02:27,098 whom we... I I normally don't 11 00:02:27,632 --> 00:02:28,848 do the same artist 12 00:02:29,397 --> 00:02:30,135 for 2 13 00:02:30,667 --> 00:02:31,722 hours, but 14 00:02:33,683 --> 00:02:35,429 this is an album I called the wind 15 00:02:35,429 --> 00:02:36,325 and the wheat 16 00:02:36,793 --> 00:02:39,101 And I think this album probably came out 17 00:02:39,101 --> 00:02:41,011 25 years ago, maybe 30. 18 00:02:42,682 --> 00:02:43,080 And 19 00:02:44,685 --> 00:02:45,877 probably closer to 30. 20 00:02:46,910 --> 00:02:47,307 He's 21 00:02:49,213 --> 00:02:49,713 his 22 00:02:50,802 --> 00:02:51,540 guitar vi, 23 00:02:53,444 --> 00:02:55,525 is kind of in full display here. It's 24 00:02:55,525 --> 00:02:56,824 just an extraordinary, 25 00:02:57,284 --> 00:02:58,324 really a good album. 26 00:02:59,125 --> 00:03:01,284 And this song is the title song with 27 00:03:01,284 --> 00:03:01,764 the album. 28 00:03:02,497 --> 00:03:02,895 But 29 00:03:03,532 --> 00:03:04,271 this was, 30 00:03:04,965 --> 00:03:07,058 you know, he kinda gone beyond his 31 00:03:08,390 --> 00:03:10,221 sort of early rock and roll days. 32 00:03:10,793 --> 00:03:13,837 Not that he can't still rock out, which 33 00:03:14,053 --> 00:03:15,109 he can, but 34 00:03:15,801 --> 00:03:16,778 he's been willing 35 00:03:18,345 --> 00:03:19,720 to be sort of 36 00:03:20,189 --> 00:03:21,490 a guitar entrepreneur 37 00:03:21,950 --> 00:03:22,590 in a sense. 38 00:03:23,310 --> 00:03:24,450 Try different things 39 00:03:25,550 --> 00:03:27,730 really into this looping stuff, which 40 00:03:28,684 --> 00:03:31,341 you know, it's... It... He uses it to 41 00:03:31,400 --> 00:03:34,356 kinda amplify the whole music. So anyway, that's 42 00:03:34,436 --> 00:03:35,475 Phil K gig again. 43 00:03:36,208 --> 00:03:38,042 And the album is the wind and the 44 00:03:38,042 --> 00:03:39,659 week, which I think the song 45 00:03:40,116 --> 00:03:43,067 sounds like that. You can almost... It's got 46 00:03:43,067 --> 00:03:43,466 definite. 47 00:03:43,945 --> 00:03:44,503 Visualize it. 48 00:03:46,034 --> 00:03:49,150 Beautiful song. Yeah. It... It's really extraordinary. 49 00:03:49,550 --> 00:03:52,586 Alright. What our brains know about stocks, but 50 00:03:52,586 --> 00:03:53,465 won't tell us now. 51 00:03:54,359 --> 00:03:55,975 I wanna compare this to something 52 00:03:57,866 --> 00:03:58,366 because 53 00:03:59,221 --> 00:04:01,452 that can apply to a lot of things. 54 00:04:02,504 --> 00:04:04,099 It's not just about investing. 55 00:04:05,375 --> 00:04:06,172 Give an example. 56 00:04:07,448 --> 00:04:09,681 There's a good friend of mine named Boone, 57 00:04:10,239 --> 00:04:10,638 Logan. 58 00:04:12,008 --> 00:04:14,952 Boone Logan is is an extraordinary human being. 59 00:04:15,748 --> 00:04:17,021 I think we had him on the show 60 00:04:17,021 --> 00:04:19,249 1 time. We did about the cancer blast. 61 00:04:19,488 --> 00:04:20,204 Yeah. That's right. 62 00:04:23,245 --> 00:04:23,745 Boone 63 00:04:25,475 --> 00:04:26,691 got me involved 64 00:04:27,306 --> 00:04:28,660 5, 6 years ago. 65 00:04:30,268 --> 00:04:32,280 Yeah. It's been that long in 66 00:04:33,928 --> 00:04:35,599 sporting plays shooting. 67 00:04:36,952 --> 00:04:40,633 Now sporting clay shooting is a thing where 68 00:04:40,633 --> 00:04:41,692 you have a shotgun, 69 00:04:42,871 --> 00:04:45,528 and you're shooting at a moving 70 00:04:46,387 --> 00:04:47,925 target that is a 71 00:04:49,352 --> 00:04:52,211 small little clay disc. It's like a little 72 00:04:52,211 --> 00:04:53,187 clay frisbee. 73 00:04:53,799 --> 00:04:54,617 It's about 74 00:04:54,991 --> 00:04:56,285 3 inches across 75 00:04:56,833 --> 00:04:57,333 usually 76 00:04:57,946 --> 00:04:59,377 orange colored or something. 77 00:05:00,331 --> 00:05:01,943 And it is thrown 78 00:05:02,397 --> 00:05:04,464 by a machine that is 79 00:05:06,944 --> 00:05:09,749 design for the purpose of throwing the the 80 00:05:10,124 --> 00:05:10,521 disc, 81 00:05:11,236 --> 00:05:12,293 and it'll follow 82 00:05:12,826 --> 00:05:14,837 some kind sometimes a very 83 00:05:16,023 --> 00:05:18,974 predictable flight pattern, sometimes not so predictable. 84 00:05:21,525 --> 00:05:23,222 When you're shooting at something 85 00:05:23,998 --> 00:05:24,636 like that, 86 00:05:25,687 --> 00:05:26,803 it's too quick. 87 00:05:27,920 --> 00:05:31,029 The the thing's happening so that the if 88 00:05:31,029 --> 00:05:32,805 you try to think about it cognitive. 89 00:05:34,473 --> 00:05:35,351 You're not gonna hit it. 90 00:05:37,587 --> 00:05:40,003 So now what you're doing is 91 00:05:40,700 --> 00:05:42,957 letting the body sort of tell you 92 00:05:43,989 --> 00:05:46,622 where it's gonna be. Now that's the brain. 93 00:05:47,100 --> 00:05:48,936 It's just not the cognitive part of the 94 00:05:48,936 --> 00:05:49,175 brain. 95 00:05:50,133 --> 00:05:50,633 What 96 00:05:51,979 --> 00:05:55,630 This article is is by... Is is kinda 97 00:05:55,630 --> 00:05:57,242 trying to say is 98 00:05:57,774 --> 00:05:59,837 it ain't just about thinking about it. 99 00:06:00,568 --> 00:06:02,743 There's an element to it 100 00:06:03,201 --> 00:06:04,498 that's sort of like 101 00:06:06,630 --> 00:06:07,609 neural knowledge 102 00:06:08,225 --> 00:06:10,002 that's not cognitive. That's 103 00:06:10,472 --> 00:06:12,399 kinda under the service, almost 104 00:06:12,851 --> 00:06:13,327 subconscious. 105 00:06:14,041 --> 00:06:16,102 And I believe that's true. Sometimes you look 106 00:06:16,102 --> 00:06:17,950 at a stock and and you 107 00:06:18,339 --> 00:06:20,332 you just... There's something about it that... 108 00:06:21,608 --> 00:06:23,282 And you've read the... You know, you know 109 00:06:23,282 --> 00:06:25,514 what? You've done your homework on it. That's 110 00:06:25,514 --> 00:06:26,630 not to say that you don't. 111 00:06:27,203 --> 00:06:29,057 But there's things about it that, 112 00:06:29,671 --> 00:06:30,149 you know, just... 113 00:06:31,105 --> 00:06:33,016 We we when we come to an agreement 114 00:06:33,016 --> 00:06:33,971 on something to buy, 115 00:06:35,578 --> 00:06:38,761 It's not always as a result of a 116 00:06:38,761 --> 00:06:41,545 long discussion and, you know, measuring the pros 117 00:06:41,545 --> 00:06:42,182 and cons. 118 00:06:42,754 --> 00:06:44,982 Things like that. With there's other things about 119 00:06:44,982 --> 00:06:45,800 the company 120 00:06:46,573 --> 00:06:48,028 and the stock itself 121 00:06:48,641 --> 00:06:49,141 that 122 00:06:49,517 --> 00:06:51,449 hit us on in a level 123 00:06:52,238 --> 00:06:54,630 I'm not even gonna say it's emotional because 124 00:06:54,630 --> 00:06:57,341 that makes it sound like, oh, you you 125 00:06:57,341 --> 00:06:59,494 like it or you don't. It's even bigger 126 00:06:59,494 --> 00:07:00,611 than that. It's just... 127 00:07:01,584 --> 00:07:03,181 The presence of the company. 128 00:07:03,900 --> 00:07:06,457 There are things about that that it... It's 129 00:07:06,457 --> 00:07:08,788 hard to put it into word, But I 130 00:07:08,788 --> 00:07:10,225 know what this guy's is getting at. Mh. 131 00:07:10,464 --> 00:07:12,858 And it... You know, this is Jason's Wig. 132 00:07:13,018 --> 00:07:15,252 Who's a... You know, he's he's 1 of 133 00:07:15,252 --> 00:07:15,651 the better... 134 00:07:17,022 --> 00:07:17,979 Article writers, 135 00:07:18,856 --> 00:07:19,733 article writers. 136 00:07:21,647 --> 00:07:22,705 He's he's 137 00:07:23,241 --> 00:07:24,698 he's 1 of the better 138 00:07:25,967 --> 00:07:26,866 financial journalists 139 00:07:27,801 --> 00:07:30,672 out there these days. He seems to understand. 140 00:07:31,789 --> 00:07:33,862 He goes beyond just the numbers on the 141 00:07:33,862 --> 00:07:34,261 page 142 00:07:34,914 --> 00:07:38,206 And the this or that. He talks about 143 00:07:38,504 --> 00:07:39,483 kind of investing 144 00:07:40,738 --> 00:07:41,637 like you might 145 00:07:42,587 --> 00:07:45,373 talk about other things that are non investing. 146 00:07:45,771 --> 00:07:48,078 And I like the premise or really do. 147 00:07:48,636 --> 00:07:51,714 Well, because we talk so much on here 148 00:07:51,993 --> 00:07:55,576 about research. And research is it's foundational. It 149 00:07:55,576 --> 00:07:56,611 it really is. Right. 150 00:07:57,805 --> 00:07:59,658 But the research 151 00:08:00,129 --> 00:08:03,021 That's that's the nuts and bolts, the numbers 152 00:08:03,478 --> 00:08:05,630 when you're looking at something. And you you 153 00:08:05,630 --> 00:08:07,943 have to have that foundation door but that's 154 00:08:07,943 --> 00:08:08,820 not the whole story. 155 00:08:09,710 --> 00:08:10,210 Because 156 00:08:11,699 --> 00:08:13,846 when... Like like you said, you know, it's 157 00:08:13,846 --> 00:08:16,709 it's kinda like muscle memory on the on 158 00:08:16,709 --> 00:08:17,266 the shooting. 159 00:08:17,678 --> 00:08:19,659 You know, music has some of those same 160 00:08:19,659 --> 00:08:22,908 aspects. It's it's muscle memory, something that comes, 161 00:08:23,066 --> 00:08:25,545 you know, kinda a little deeper. You than 162 00:08:25,545 --> 00:08:28,985 the cognitive of neural knowledge sort of like. 163 00:08:30,185 --> 00:08:30,925 The brain 164 00:08:31,305 --> 00:08:31,805 element 165 00:08:32,119 --> 00:08:34,749 it's not just cognitive. It's not just the 166 00:08:34,749 --> 00:08:37,220 conscious part of it. It's parts of it 167 00:08:37,220 --> 00:08:38,415 that are non conscious. Yes. 168 00:08:39,292 --> 00:08:39,792 To 169 00:08:40,421 --> 00:08:41,847 try to explain it a little bit. So 170 00:08:41,847 --> 00:08:42,720 you you think of, 171 00:08:43,274 --> 00:08:44,464 1 1 of Buffett, 172 00:08:45,970 --> 00:08:48,444 sayings, you know, you be you're you should 173 00:08:48,444 --> 00:08:51,383 be greedy when others are fearful and vice 174 00:08:51,383 --> 00:08:51,621 versa. 175 00:08:52,336 --> 00:08:54,718 Well, what that's looking at, that's looking at 176 00:08:54,718 --> 00:08:57,672 the emotions, the the the emotions of the 177 00:08:57,672 --> 00:08:59,501 herd, the herd mentality. 178 00:09:00,774 --> 00:09:02,705 But to be able to 179 00:09:04,113 --> 00:09:06,920 capitalize on that, you have to be 180 00:09:07,549 --> 00:09:09,622 able... I mean, you have to control your 181 00:09:09,622 --> 00:09:12,653 own emotions as an investor. Right. First, that's 182 00:09:12,653 --> 00:09:14,887 hard enough in and of itself is controlling 183 00:09:14,887 --> 00:09:17,040 your own emotions, thinking long term, 184 00:09:18,011 --> 00:09:19,443 But then you have to take that a 185 00:09:19,443 --> 00:09:21,115 step further and say, okay, 186 00:09:21,990 --> 00:09:23,503 emotionally as a human being, 187 00:09:24,139 --> 00:09:26,709 this is how I feel right now, given 188 00:09:27,259 --> 00:09:29,891 XYZ that's happening in the market with a 189 00:09:29,891 --> 00:09:30,688 particular company. 190 00:09:31,566 --> 00:09:33,900 And then you look at you you examine 191 00:09:33,958 --> 00:09:36,804 that feeling and you say, okay. Is that 192 00:09:37,084 --> 00:09:39,157 what most people are feeling right now. Well, 193 00:09:39,317 --> 00:09:40,832 give give you an example right now, 194 00:09:42,188 --> 00:09:42,746 to me, 195 00:09:43,783 --> 00:09:46,335 the base feeling right now in the market, 196 00:09:46,749 --> 00:09:47,308 is greed. 197 00:09:48,266 --> 00:09:52,098 To me, like, personally, that's what I feel 198 00:09:52,098 --> 00:09:53,157 as the base 199 00:09:53,695 --> 00:09:55,531 emotion because the market's going up and that... 200 00:09:55,690 --> 00:09:56,584 And it's greed. 201 00:09:57,783 --> 00:09:59,221 You have to look at that and say, 202 00:09:59,541 --> 00:09:59,701 okay, 203 00:10:00,819 --> 00:10:02,577 that's when you have to start being the 204 00:10:02,577 --> 00:10:04,735 thought market was going up just because they're 205 00:10:04,735 --> 00:10:06,268 really nice people. Yeah. 206 00:10:07,227 --> 00:10:10,045 You you you have to take that 207 00:10:10,583 --> 00:10:13,540 emotion and then say, okay, Because that's just... 208 00:10:14,434 --> 00:10:14,934 My 209 00:10:15,554 --> 00:10:16,695 gut feeling 210 00:10:17,075 --> 00:10:19,154 of what's going on. You take that and 211 00:10:19,154 --> 00:10:21,475 say, okay. That's when you need to start 212 00:10:21,475 --> 00:10:23,254 being concerned or 213 00:10:23,569 --> 00:10:25,402 you see an opportunity of these different things. 214 00:10:26,120 --> 00:10:28,432 But here's the other thing. Yes of that... 215 00:10:29,628 --> 00:10:31,722 That's gonna be true in certain 216 00:10:32,433 --> 00:10:36,100 extremely hot stocks. Yep. What's that stock that's 217 00:10:36,100 --> 00:10:37,934 just gone up more than Nvidia, 218 00:10:39,050 --> 00:10:40,246 super micro. Yeah. 219 00:10:41,138 --> 00:10:42,654 Now that thing has been just... 220 00:10:43,691 --> 00:10:45,546 What is it up 8 or 9 times 221 00:10:45,605 --> 00:10:46,323 in the last... 222 00:10:47,599 --> 00:10:48,875 I don't have the numbers in front of 223 00:10:48,875 --> 00:10:49,912 me, but that it's 224 00:10:50,962 --> 00:10:52,471 The stock was a few hundred dollars, 225 00:10:53,345 --> 00:10:55,568 6 or 7 months ago and it's 900 226 00:10:55,568 --> 00:10:56,997 now. So what do they do? 227 00:10:57,791 --> 00:10:58,268 They make... 228 00:10:58,919 --> 00:11:01,879 Ai servers. They compete actually with Dell, 229 00:11:02,759 --> 00:11:03,659 but they are 230 00:11:04,120 --> 00:11:06,620 projected because that's where the growth is. Their 231 00:11:07,174 --> 00:11:09,012 projected to see just phenomenal growth over the 232 00:11:09,012 --> 00:11:10,690 next couple of years and people are paying 233 00:11:10,690 --> 00:11:11,729 up for that. Yeah. 234 00:11:12,528 --> 00:11:14,685 The point is become a great treat is 235 00:11:14,685 --> 00:11:18,295 happening in certain stocks. Other ones nobody cares. 236 00:11:18,615 --> 00:11:20,932 Right? Right? There's there's a lot of broken 237 00:11:20,932 --> 00:11:21,831 down stocks 238 00:11:22,784 --> 00:11:24,939 And and so everybody says, well, the stock 239 00:11:24,939 --> 00:11:27,174 market's is up. We're talking about 7 or 240 00:11:27,174 --> 00:11:29,569 8 stocks, You know? Yep. And and then 241 00:11:29,569 --> 00:11:31,325 there's some other sub sub... 242 00:11:31,978 --> 00:11:32,536 Species there, 243 00:11:33,174 --> 00:11:35,647 but it's not across the board. And So 244 00:11:35,806 --> 00:11:38,837 I think the greed is being driven in 245 00:11:38,837 --> 00:11:41,310 certain areas that are a really crowded trade. 246 00:11:41,882 --> 00:11:43,553 And then there's other ones where there's fear. 247 00:11:43,872 --> 00:11:45,941 Right? So they can be going on at 248 00:11:45,941 --> 00:11:48,965 the same time. It's just... It all makes 249 00:11:48,965 --> 00:11:50,159 up the market, 250 00:11:50,636 --> 00:11:53,625 but Mh the stories can be vastly different 251 00:11:53,923 --> 00:11:56,558 from 1 company to the next. Right? And 252 00:11:56,558 --> 00:11:58,634 and that's... Because when you're looking at the 253 00:11:58,634 --> 00:12:00,470 market, the S and P 500, 254 00:12:00,724 --> 00:12:03,356 you're looking at an average of everything in 255 00:12:03,356 --> 00:12:05,190 there. So when you start looking under the 256 00:12:05,190 --> 00:12:07,503 surface and you look at the companies or 257 00:12:07,503 --> 00:12:10,948 the sectors where you've had fear, being priced 258 00:12:10,948 --> 00:12:12,407 in or just 259 00:12:12,946 --> 00:12:15,583 maybe not even fear. In some cases fear, 260 00:12:15,902 --> 00:12:17,820 But in some cases, there's just it's just, 261 00:12:17,900 --> 00:12:20,377 like Well, it's it's there. There's no interest 262 00:12:20,377 --> 00:12:22,600 in it. And Yeah. They they're not even 263 00:12:22,600 --> 00:12:23,632 it's not even fear. 264 00:12:24,346 --> 00:12:24,743 It's... 265 00:12:25,855 --> 00:12:25,909 Well 266 00:12:26,984 --> 00:12:30,804 it's it's just apa. Yeah. Yeah. And that's 267 00:12:30,804 --> 00:12:32,316 where you find on the flip side of 268 00:12:32,316 --> 00:12:33,112 the coin of fear, 269 00:12:33,925 --> 00:12:36,165 or on of greed, that's where you can 270 00:12:36,165 --> 00:12:37,285 find opportunities. 271 00:12:37,925 --> 00:12:39,465 Right. And so 272 00:12:40,565 --> 00:12:41,065 investing 273 00:12:42,178 --> 00:12:43,946 It is it it is 274 00:12:44,555 --> 00:12:46,695 research, nuts and bolts, numbers, 275 00:12:47,250 --> 00:12:48,225 but it's also 276 00:12:48,835 --> 00:12:49,445 the... And 277 00:12:50,042 --> 00:12:51,555 interpretation of that, and that's where it gets 278 00:12:51,555 --> 00:12:52,750 to experience, 279 00:12:53,148 --> 00:12:55,002 and there's a difference between 280 00:12:56,016 --> 00:12:58,029 experience and having experiences. 281 00:12:58,738 --> 00:13:01,855 You know, you get experience by learning 282 00:13:02,306 --> 00:13:05,819 through these different experiences that you've had. And, 283 00:13:06,270 --> 00:13:09,725 you markets, they're they're they're always changing, 284 00:13:10,205 --> 00:13:11,345 But there's certain 285 00:13:12,125 --> 00:13:12,524 certain, 286 00:13:13,485 --> 00:13:14,384 really is just 287 00:13:14,937 --> 00:13:16,073 human behavior 288 00:13:16,687 --> 00:13:19,312 that's common through the whole thing, and you 289 00:13:19,312 --> 00:13:22,355 see these, you know, booms and busts and, 290 00:13:22,434 --> 00:13:25,075 you know, fear and greed and all these 291 00:13:25,075 --> 00:13:27,475 different things. That's something that's common. 292 00:13:28,115 --> 00:13:31,317 Now you can't time the market based on 293 00:13:31,317 --> 00:13:31,476 that, 294 00:13:32,430 --> 00:13:35,950 but you can you can find long term 295 00:13:36,086 --> 00:13:36,586 opportunities 296 00:13:37,452 --> 00:13:39,438 or keep yourself out of a lot of 297 00:13:39,438 --> 00:13:39,938 trouble 298 00:13:40,867 --> 00:13:43,090 by getting out of certain areas. 299 00:13:44,043 --> 00:13:45,099 Right. So 300 00:13:45,567 --> 00:13:48,028 investing so much more than just the numbers. 301 00:13:48,187 --> 00:13:51,308 It's interpreting the numbers. It's interpreting experiences 302 00:13:51,840 --> 00:13:52,340 and 303 00:13:53,364 --> 00:13:54,721 like like your shooting example. 304 00:13:55,759 --> 00:13:57,675 But there's there's times. 305 00:13:58,633 --> 00:14:01,687 When you see a company and there's something 306 00:14:01,746 --> 00:14:03,137 about it, that 307 00:14:04,305 --> 00:14:06,450 it it doesn't really have to do with 308 00:14:06,450 --> 00:14:08,277 the balance sheet. It has to do with... 309 00:14:08,753 --> 00:14:10,262 Sometimes it's just what they do. 310 00:14:10,834 --> 00:14:13,065 It's the business that they're in. They're going 311 00:14:13,065 --> 00:14:13,565 to 312 00:14:14,260 --> 00:14:16,491 do a process or have a product that's 313 00:14:16,491 --> 00:14:17,687 going to revolutionize. 314 00:14:18,339 --> 00:14:20,246 An industry. And I mean, change the economics. 315 00:14:20,405 --> 00:14:21,620 And I mean, you can use 316 00:14:22,074 --> 00:14:23,822 Starbucks as an example. There was no such 317 00:14:23,822 --> 00:14:25,968 thing as a, you know, being coffee was 318 00:14:25,968 --> 00:14:26,865 not the popular 319 00:14:27,413 --> 00:14:29,639 coffee houses were not a popular gathering spot. 320 00:14:30,116 --> 00:14:32,262 And So what created did just kept raising 321 00:14:32,262 --> 00:14:34,646 at Christ and suddenly coffee got popular. That's 322 00:14:34,646 --> 00:14:36,886 right. You know, it made yep may let 323 00:14:36,886 --> 00:14:37,522 me tell you some. 324 00:14:38,554 --> 00:14:41,333 It's not about... I I think we might 325 00:14:41,333 --> 00:14:43,715 be at a point now where everybody but 326 00:14:43,953 --> 00:14:47,382 Starbucks is finding. They they can't price a 327 00:14:47,382 --> 00:14:48,572 latte at 8 dollars. 328 00:14:49,365 --> 00:14:49,865 But 329 00:14:50,318 --> 00:14:50,818 Starbucks, 330 00:14:51,905 --> 00:14:52,698 let me tell you some. 331 00:14:53,983 --> 00:14:56,364 I go and I'm gonna be real honest 332 00:14:56,364 --> 00:14:56,760 with you. 333 00:14:58,030 --> 00:15:00,728 That's about 5 times Today. I'm doing it 334 00:15:00,728 --> 00:15:01,204 because of her. 335 00:15:02,332 --> 00:15:03,924 You walk into the Starbucks. 336 00:15:06,711 --> 00:15:07,609 55 337 00:15:07,666 --> 00:15:09,417 percent of that's being sold on the app. 338 00:15:10,308 --> 00:15:12,618 Yep. They're walking in and getting their coffee. 339 00:15:13,016 --> 00:15:15,087 They're not in there to visit. They're not 340 00:15:15,087 --> 00:15:17,318 in there to stand in line and give 341 00:15:17,318 --> 00:15:18,751 the barista to their order. 342 00:15:19,485 --> 00:15:21,884 They've sent it in over the app. They're 343 00:15:21,884 --> 00:15:22,445 walking in... 344 00:15:23,245 --> 00:15:25,504 And any other coffee 345 00:15:26,445 --> 00:15:27,965 stock or company. 346 00:15:28,459 --> 00:15:31,492 That wants to get serious. If they don't 347 00:15:31,492 --> 00:15:33,886 have the app, they're never gonna be in 348 00:15:33,886 --> 00:15:36,141 that league. That is the moat 349 00:15:36,615 --> 00:15:38,695 the Starbucks has right now. 350 00:15:39,334 --> 00:15:41,414 Is the app. You know what is so 351 00:15:41,414 --> 00:15:43,414 interesting about that too? Is it used to 352 00:15:43,414 --> 00:15:46,699 be a visiting spot? People would meet people 353 00:15:46,699 --> 00:15:48,448 to have coffee or have a business meeting 354 00:15:48,448 --> 00:15:51,310 or whatever. Work a a lot. A lot 355 00:15:51,310 --> 00:15:54,116 of the Starbucks have now eliminated. 356 00:15:54,650 --> 00:15:55,779 Right seating areas. 357 00:15:56,416 --> 00:15:57,052 I didn't know that. 358 00:15:57,928 --> 00:15:58,428 Increased 359 00:15:59,042 --> 00:16:02,941 the area where they have available for people 360 00:16:02,941 --> 00:16:04,237 to come in and out 361 00:16:04,549 --> 00:16:06,065 was that the 1 on Richmond Road, that 362 00:16:06,065 --> 00:16:07,581 was remodeled and they took all of the 363 00:16:07,581 --> 00:16:08,619 customer seating out of that. 364 00:16:09,496 --> 00:16:11,332 You know, the the... And and this... 365 00:16:12,542 --> 00:16:13,733 Company over here on, 366 00:16:15,480 --> 00:16:18,124 where the salt used used to be the 367 00:16:19,053 --> 00:16:19,609 it's on, 368 00:16:20,244 --> 00:16:20,959 high street there. 369 00:16:21,769 --> 00:16:23,605 That's a coffee thing in the lower floor. 370 00:16:24,244 --> 00:16:26,240 You walk in there. It's like you're walking 371 00:16:26,240 --> 00:16:27,118 into a study hall. 372 00:16:28,555 --> 00:16:30,092 So there's no way 373 00:16:31,444 --> 00:16:32,343 that the revenue 374 00:16:32,962 --> 00:16:34,021 of those customers 375 00:16:35,198 --> 00:16:35,698 is, 376 00:16:36,876 --> 00:16:37,196 you know, 377 00:16:38,729 --> 00:16:43,203 is there. Because they're... They don't have AAA 378 00:16:43,203 --> 00:16:45,361 never ending of stream of people coming in 379 00:16:45,361 --> 00:16:47,853 to pick up their cost Starbucks is selling 380 00:16:47,853 --> 00:16:49,212 so much more. I didn't wanna get on 381 00:16:49,372 --> 00:16:50,410 Starbucks necessarily. 382 00:16:51,449 --> 00:16:51,949 But 383 00:16:53,288 --> 00:16:54,966 it's sort of chad fault. That's right. 384 00:16:56,975 --> 00:16:59,518 That business plan is not gonna get... 385 00:17:00,790 --> 00:17:03,594 You're not gonna bust that business plan unless 386 00:17:04,940 --> 00:17:06,535 you're in a small town, and they don't 387 00:17:06,535 --> 00:17:09,165 have 1 there something. Yeah And and if 388 00:17:09,165 --> 00:17:11,637 with people using that app, sorry. 389 00:17:12,609 --> 00:17:14,762 You're toast. Well, there are other examples. I 390 00:17:14,762 --> 00:17:16,916 mean, that's just a disrupt. I mean. You 391 00:17:16,916 --> 00:17:19,787 want to invest in disrupting businesses even if 392 00:17:19,787 --> 00:17:22,100 you're not sure about the economics and the 393 00:17:22,100 --> 00:17:25,394 trick there is to understand what's actually disruptive, 394 00:17:25,554 --> 00:17:28,194 which is a versus a false... And that's 395 00:17:28,194 --> 00:17:30,674 not always a dollars and cents thing that's 396 00:17:30,674 --> 00:17:33,500 on the page. It's it's something that something 397 00:17:33,718 --> 00:17:34,912 tells you that this is... 398 00:17:35,789 --> 00:17:37,860 You know, we invest in 1 company that 399 00:17:38,019 --> 00:17:40,112 I think is a really interesting company 400 00:17:40,503 --> 00:17:42,253 doesn't necessarily have a moat, 401 00:17:42,889 --> 00:17:44,877 but it could have a mode. It's a 402 00:17:44,877 --> 00:17:46,627 company that does aircraft leasing. 403 00:17:47,422 --> 00:17:47,661 Well, 404 00:17:49,267 --> 00:17:51,996 that's a vital cog in how 405 00:17:53,566 --> 00:17:56,193 a lot of airlines get aircraft. Mh. 406 00:17:57,561 --> 00:17:59,233 Remember Darcy you say aircrafts. 407 00:18:00,506 --> 00:18:01,382 And anyway, 408 00:18:02,258 --> 00:18:02,758 they 409 00:18:03,372 --> 00:18:03,611 they, 410 00:18:05,458 --> 00:18:07,930 that it's the financing part of it, but 411 00:18:07,930 --> 00:18:11,679 it's also maintenance. It's figuring out what part 412 00:18:11,679 --> 00:18:14,072 goes where and what's the most cost effective 413 00:18:14,072 --> 00:18:15,202 way to do it? Yeah. 414 00:18:16,395 --> 00:18:17,213 You think 415 00:18:17,587 --> 00:18:19,495 anybody could get in that business. But then 416 00:18:19,495 --> 00:18:22,118 you start looking at the economies of scale. 417 00:18:22,928 --> 00:18:25,549 And the depth of knowing how to go 418 00:18:25,549 --> 00:18:28,646 get your planes and pick things up and 419 00:18:28,646 --> 00:18:31,664 change stuff out, flipping engine out of 1 420 00:18:31,664 --> 00:18:34,008 thing into All of a sudden you realize 421 00:18:35,020 --> 00:18:36,293 that in a sense, 422 00:18:37,089 --> 00:18:39,715 this is what the airline should be doing 423 00:18:39,715 --> 00:18:40,670 for themselves. 424 00:18:41,878 --> 00:18:44,362 And they're doing it. They have become an 425 00:18:44,497 --> 00:18:47,036 integral part of the airlines. Yeah. I'm not 426 00:18:47,036 --> 00:18:48,781 gonna tell you a name that company. 427 00:18:49,194 --> 00:18:50,630 You gotta come in and talk to it. 428 00:18:51,427 --> 00:18:53,980 The the the point is And if you'd 429 00:18:53,980 --> 00:18:57,569 like to. Yeah. It's 85923304 430 00:18:57,569 --> 00:18:57,968 hundred. 431 00:18:59,259 --> 00:19:00,238 You know, but 432 00:19:01,017 --> 00:19:02,055 there... It's just... 433 00:19:03,733 --> 00:19:06,384 The the thing about it investing is that 434 00:19:06,384 --> 00:19:08,542 you have to kinda wrap your mind around 435 00:19:08,542 --> 00:19:10,480 the whole process and then 436 00:19:11,019 --> 00:19:13,257 try things. Yeah. But, I mean, like, with 437 00:19:13,257 --> 00:19:13,896 that company. 438 00:19:15,189 --> 00:19:16,546 You would think that, okay, 439 00:19:17,424 --> 00:19:20,057 private equity will get into this business. You 440 00:19:20,057 --> 00:19:21,414 saw that. I don't know what they're doing. 441 00:19:21,574 --> 00:19:22,931 You you saw that with 442 00:19:24,144 --> 00:19:26,701 shipping containers. A lot of private equity got 443 00:19:26,701 --> 00:19:28,858 involved in that, because that's a it's the 444 00:19:28,858 --> 00:19:31,915 same concept, but it's a much simpler business 445 00:19:31,975 --> 00:19:34,376 simpler. Just this deal. When when some of 446 00:19:34,376 --> 00:19:37,158 these aircraft leasing companies came about, they were 447 00:19:37,158 --> 00:19:39,940 actually spun out of private equity. There was 448 00:19:39,940 --> 00:19:41,450 1 in particular that was spun out of 449 00:19:41,450 --> 00:19:42,657 a. Private equity company. 450 00:19:43,610 --> 00:19:46,391 And... But they're they're not getting in that 451 00:19:46,391 --> 00:19:49,671 business because it's not just about the dollars 452 00:19:50,460 --> 00:19:50,960 to 453 00:19:51,259 --> 00:19:52,140 buy the equipment. 454 00:19:52,619 --> 00:19:56,380 It's it's the network. It's the knowledge of 455 00:19:56,380 --> 00:19:57,279 how to 456 00:19:57,594 --> 00:19:57,912 you know, 457 00:19:58,706 --> 00:20:00,296 change out the parts, all that stuff you 458 00:20:00,296 --> 00:20:02,545 were saying. It it's... That... That's 459 00:20:02,919 --> 00:20:05,304 that's the business right there. It's not the 460 00:20:05,304 --> 00:20:07,863 plane and the parts. It's the knowledge of 461 00:20:07,863 --> 00:20:09,215 how to use it. Well, they look at 462 00:20:09,215 --> 00:20:11,999 a an airplane and they say, is this 463 00:20:11,999 --> 00:20:14,565 more valuable as an airplane? Or a bag 464 00:20:14,565 --> 00:20:17,944 of parts. Yeah. You know? And and they 465 00:20:18,404 --> 00:20:20,345 have an algorithm or something 466 00:20:20,964 --> 00:20:22,984 that is gonna tell them that 467 00:20:23,459 --> 00:20:23,959 and 468 00:20:24,494 --> 00:20:25,870 it's very fascinating. 469 00:20:26,325 --> 00:20:28,953 But they're... See, that's the thing about being 470 00:20:28,953 --> 00:20:31,502 in this business is you get to use, 471 00:20:32,233 --> 00:20:35,120 all parts of your brain. Right? And 472 00:20:35,893 --> 00:20:37,723 if you're just sitting there looking at a 473 00:20:37,723 --> 00:20:39,713 mutual fund, and I got a list of 474 00:20:39,713 --> 00:20:40,509 things that Out, 475 00:20:41,480 --> 00:20:42,200 It's okay, 476 00:20:42,759 --> 00:20:43,259 but 477 00:20:43,720 --> 00:20:45,099 you don't really 478 00:20:45,400 --> 00:20:47,640 get a feel for what your money's doing 479 00:20:47,640 --> 00:20:48,680 and where it is. 480 00:20:49,494 --> 00:20:51,674 See that to me is more satisfying. 481 00:20:52,615 --> 00:20:55,414 And I think when people become disconnected from 482 00:20:55,414 --> 00:20:57,654 their money that they've worked so hard for. 483 00:20:58,309 --> 00:20:59,508 You know, it's a big part of your 484 00:20:59,508 --> 00:21:02,544 life you're disconnected from. And and I think 485 00:21:02,544 --> 00:21:05,261 it's important to know about these thing Even 486 00:21:05,261 --> 00:21:05,900 if you're not... 487 00:21:06,954 --> 00:21:08,233 Thoroughly interested in it. 488 00:21:09,111 --> 00:21:10,630 It helps to know more, 489 00:21:12,307 --> 00:21:13,985 especially when things get rough, 490 00:21:15,357 --> 00:21:17,690 And as your life changes? Yeah. As your 491 00:21:17,828 --> 00:21:19,980 situations change, how does that company... 492 00:21:20,378 --> 00:21:23,102 How does their business and their operations. How 493 00:21:23,102 --> 00:21:25,249 does that fit? Is it repeatable? Do you 494 00:21:25,249 --> 00:21:27,554 need repeatable income? How does all that fit 495 00:21:27,554 --> 00:21:29,939 together? Right. If you would like to learn 496 00:21:29,939 --> 00:21:30,575 all of that, 497 00:21:31,211 --> 00:21:31,847 come see us. 498 00:21:32,578 --> 00:21:34,652 85923304 499 00:21:34,652 --> 00:21:37,603 hundred. You can also schedule an appointment directly 500 00:21:37,603 --> 00:21:40,235 on our homepage at to pre financial dot 501 00:21:40,235 --> 00:21:41,910 com, click the book now button. 502 00:21:43,280 --> 00:21:44,952 You've been listening to the financial hour with 503 00:21:45,032 --> 00:21:47,023 Mike Johnson, Chad S and our host, Tom 504 00:21:47,182 --> 00:21:49,333 Du, we will be back in just a 505 00:21:49,333 --> 00:21:50,448 minute. Stay tuned. 506 00:22:03,246 --> 00:22:04,600 This is Tom D pre. 507 00:22:05,158 --> 00:22:08,367 At pre financial Group. We believe proper management. 508 00:22:08,680 --> 00:22:10,140 Of retirement assets 509 00:22:10,759 --> 00:22:12,460 is a long term process. 510 00:22:13,240 --> 00:22:15,720 If you've been listening, we've been advertising for 511 00:22:15,720 --> 00:22:17,019 over 20 years 512 00:22:17,492 --> 00:22:20,197 We know that choosing an advisor can take 513 00:22:20,197 --> 00:22:22,027 a long time to decide, 514 00:22:22,663 --> 00:22:25,129 and it's a long term engagement when you 515 00:22:25,129 --> 00:22:25,845 do decide. 516 00:22:26,498 --> 00:22:27,397 Our accountability 517 00:22:27,854 --> 00:22:29,768 must also be up to the nature of 518 00:22:29,768 --> 00:22:32,719 the job and with 46 years in the 519 00:22:32,719 --> 00:22:35,670 investment business we're used to being accountable. 520 00:22:36,480 --> 00:22:39,901 For more information on how we manage retirement 521 00:22:39,901 --> 00:22:45,238 assets, call us at 85923304 522 00:22:45,238 --> 00:22:48,194 hundred or go to our website at pre 523 00:22:48,724 --> 00:22:50,071 dot com. Also, 524 00:22:50,563 --> 00:22:53,137 be sure to listen to the Tom Show 525 00:22:53,195 --> 00:22:55,529 at news radio 06:30 w 526 00:22:56,625 --> 00:22:58,560 or on your favorite podcast 527 00:22:58,938 --> 00:22:59,438 platform. 528 00:25:20,619 --> 00:25:22,617 Alright. That's Phil K again. 529 00:25:23,735 --> 00:25:24,715 The that 530 00:25:25,173 --> 00:25:27,431 that is 1 of the most enjoyable. 531 00:25:28,622 --> 00:25:28,941 Guitar, 532 00:25:29,498 --> 00:25:31,828 and we only played the last... And 533 00:25:32,442 --> 00:25:34,750 how about the the chain... Where they swing 534 00:25:34,750 --> 00:25:37,376 it the total time change that's cool to 535 00:25:37,376 --> 00:25:37,750 the 536 00:25:38,266 --> 00:25:40,592 swinging, and I actually heard that 537 00:25:41,839 --> 00:25:42,339 somewhere 538 00:25:42,712 --> 00:25:45,198 that that jam went on about another 539 00:25:46,462 --> 00:25:49,334 15 minutes. Yeah. And that they just... They 540 00:25:49,334 --> 00:25:50,610 had to turn... There was a guy named 541 00:25:50,769 --> 00:25:51,828 Michael O 542 00:25:52,604 --> 00:25:53,083 who was... 543 00:25:54,040 --> 00:25:55,769 Or it might have been another guy 544 00:25:56,445 --> 00:25:58,989 It could've been buck hearing, but somebody was 545 00:25:58,989 --> 00:26:01,135 running the tape machine, and they... They had 546 00:26:01,135 --> 00:26:03,464 to turn it off. But that thing 547 00:26:03,918 --> 00:26:04,474 went on, 548 00:26:06,162 --> 00:26:09,036 that's from a song called time. And it 549 00:26:09,036 --> 00:26:13,665 was recorded in 19 76 Phil Ke, KEAGGY. 550 00:26:14,559 --> 00:26:14,878 So, 551 00:26:15,997 --> 00:26:16,875 welcome back to the time. 552 00:26:17,674 --> 00:26:19,671 Go back to the Tom Show. Joining us, 553 00:26:20,230 --> 00:26:22,638 Mike Johnson Chad Stu I'll host Tom Pre 554 00:26:22,638 --> 00:26:24,550 brought to you by a pre I'm into? 555 00:26:25,267 --> 00:26:26,781 Where we make your money work for you. 556 00:26:27,418 --> 00:26:27,657 Okay. 557 00:26:28,949 --> 00:26:30,707 You wanna do this 1 or... Yeah. So 558 00:26:30,707 --> 00:26:33,983 it it... The the next 2 tie into 559 00:26:33,983 --> 00:26:35,182 what we're were talking about in the first 560 00:26:35,182 --> 00:26:36,060 half. So it it was... 561 00:26:37,515 --> 00:26:38,974 Looking at, you know, using, 562 00:26:39,275 --> 00:26:39,515 you know, 563 00:26:40,154 --> 00:26:42,394 experience looking at what people are doing what 564 00:26:42,394 --> 00:26:43,595 the markets are doing, 565 00:26:44,889 --> 00:26:46,647 1 of the things you're seeing right now 566 00:26:46,647 --> 00:26:50,103 is a lot of money being parked as 567 00:26:50,882 --> 00:26:53,293 just for a number of different reasons, but 568 00:26:53,293 --> 00:26:56,001 in money market funds because money market funds 569 00:26:56,001 --> 00:26:59,028 are now yielding right around 5 percent, give 570 00:26:59,028 --> 00:27:00,542 or take a couple of basis points. 571 00:27:01,418 --> 00:27:01,918 And 572 00:27:02,628 --> 00:27:04,064 Let me add something to that real quick. 573 00:27:04,224 --> 00:27:07,755 That 5 percent is actually nominal, which is 574 00:27:07,813 --> 00:27:10,844 not adjusted for inflation, but even after inflation 575 00:27:10,844 --> 00:27:11,721 money market funds, 576 00:27:12,374 --> 00:27:14,605 are having a positive yield, which they didn't 577 00:27:14,605 --> 00:27:16,596 have for so many years. So that's... I 578 00:27:16,596 --> 00:27:18,428 think another reason why there's so much money 579 00:27:18,428 --> 00:27:20,101 that's gone. It's why people are in. Right? 580 00:27:20,340 --> 00:27:21,637 Yeah. And 581 00:27:22,028 --> 00:27:24,419 So you you you look at look at 582 00:27:24,419 --> 00:27:27,549 the emotion on on that. So 583 00:27:27,926 --> 00:27:28,745 it feels 584 00:27:29,122 --> 00:27:32,575 good, to have money, quote unquote, risk free 585 00:27:32,575 --> 00:27:35,375 sitting there earning 5 percent right now because 586 00:27:35,375 --> 00:27:36,654 you haven't been able to do that in 587 00:27:36,654 --> 00:27:37,615 a long time. 588 00:27:38,494 --> 00:27:38,994 And 589 00:27:39,309 --> 00:27:39,809 So 590 00:27:40,348 --> 00:27:41,807 everybody feels comfortable. 591 00:27:42,745 --> 00:27:44,583 Emotionally, it feels good to be able to 592 00:27:44,583 --> 00:27:46,661 sit it sit there and earn that, 593 00:27:47,300 --> 00:27:47,755 but 594 00:27:48,589 --> 00:27:50,598 the market knows, our listeners 595 00:27:50,972 --> 00:27:53,593 know because we've talked about it. Money market 596 00:27:53,593 --> 00:27:56,000 is of floating rate. So 597 00:27:56,708 --> 00:27:57,208 when 598 00:27:57,745 --> 00:28:00,137 the interest rates go down in the future. 599 00:28:00,536 --> 00:28:03,667 Don't know when that is... Nobody knows when 600 00:28:03,725 --> 00:28:05,400 exactly that's gonna be. I know. 601 00:28:07,805 --> 00:28:09,877 Tell us afterwards. See. Yeah. What let me 602 00:28:09,877 --> 00:28:10,753 answer 1 other... 603 00:28:11,311 --> 00:28:12,506 Let me add 1 other thing. 604 00:28:13,720 --> 00:28:15,079 They see 5 percent. 605 00:28:16,599 --> 00:28:18,200 They think I put my money in and 606 00:28:18,279 --> 00:28:20,359 I get 5 percent on it. Right. 607 00:28:21,000 --> 00:28:21,240 No. 608 00:28:22,454 --> 00:28:24,534 You put your money in and if it 609 00:28:24,534 --> 00:28:27,575 keeps paying 5 percent for a year. 610 00:28:29,028 --> 00:28:31,733 That's an annual number. I've seen people say, 611 00:28:32,767 --> 00:28:35,074 well, here's a 3 month Cd paying 5 612 00:28:35,074 --> 00:28:35,312 percent. 613 00:28:37,313 --> 00:28:39,003 I think that they think 614 00:28:39,773 --> 00:28:41,384 they're gonna get 5 percent 615 00:28:41,915 --> 00:28:44,058 by putting their money in a Cd for 616 00:28:44,058 --> 00:28:46,857 for... 3 months. It's like, at the end 617 00:28:46,857 --> 00:28:49,824 of 3 months, they'll have a hundred 5000 618 00:28:49,960 --> 00:28:52,029 instead of a hundred. Yeah. It's like, no. 619 00:28:52,268 --> 00:28:55,071 It's not how it works Whenever they quote 620 00:28:55,071 --> 00:28:56,049 you a yield, 621 00:28:57,144 --> 00:29:00,096 it's on an annual basis means you have 622 00:29:00,096 --> 00:29:01,451 to have had it in there for a 623 00:29:01,451 --> 00:29:03,626 year. Right. Go ahead. And 624 00:29:04,419 --> 00:29:04,919 So 625 00:29:06,179 --> 00:29:08,119 people are thinking that, okay, once 626 00:29:08,740 --> 00:29:10,259 rates start going down, 627 00:29:10,980 --> 00:29:13,788 then I will do XYZI 628 00:29:13,788 --> 00:29:14,904 will buy a bond fund. 629 00:29:16,021 --> 00:29:18,414 Time. Have plenty of time I will buy 630 00:29:18,414 --> 00:29:20,727 a longer term bond. Yada yada I will, 631 00:29:20,886 --> 00:29:22,178 I will I will. I'm gonna know you 632 00:29:22,497 --> 00:29:24,174 all the juice out of that weapon before 633 00:29:24,254 --> 00:29:26,329 I yeah going with as long as I 634 00:29:26,329 --> 00:29:29,682 can do it. And the... On average... Yeah. 635 00:29:29,842 --> 00:29:32,734 They've done some studies on... This. The individual 636 00:29:32,734 --> 00:29:35,134 investor tend to hold on to 637 00:29:35,855 --> 00:29:37,214 money market about, 638 00:29:38,414 --> 00:29:39,055 18 months. 639 00:29:39,868 --> 00:29:41,537 Act longer than they should. 640 00:29:43,444 --> 00:29:44,874 And it's it's like that with... 641 00:29:45,669 --> 00:29:47,735 We remember the things take. Yeah. 642 00:29:48,783 --> 00:29:49,840 There was a guy 643 00:29:50,612 --> 00:29:52,759 came in here 1 time. I think it's 644 00:29:52,759 --> 00:29:54,985 probably been 12:14 645 00:29:54,985 --> 00:29:55,860 years ago now. 646 00:29:56,989 --> 00:29:58,265 I think he was an attorney. 647 00:29:59,062 --> 00:30:00,440 He had his whole, 648 00:30:03,449 --> 00:30:07,131 41K in cash, several hundred thousand dollars You 649 00:30:07,131 --> 00:30:09,354 know, he gotten out, and I think he 650 00:30:09,354 --> 00:30:12,212 had nailed it on getting out 1 04:08 651 00:30:12,212 --> 00:30:14,435 o 9. Yeah. It was in cash and 652 00:30:14,435 --> 00:30:15,467 and things had gone up, 653 00:30:16,518 --> 00:30:17,475 and he kept saying, 654 00:30:18,990 --> 00:30:21,383 I'm gonna wait for the meltdown to happen. 655 00:30:22,180 --> 00:30:25,052 And he was just... He he could not 656 00:30:25,052 --> 00:30:25,552 be 657 00:30:26,582 --> 00:30:28,098 talked out of the idea. 658 00:30:29,134 --> 00:30:32,165 And so the Dow was probably at, you 659 00:30:32,165 --> 00:30:32,325 know, 660 00:30:33,123 --> 00:30:35,356 8 or 9000 at the time. Now it's 661 00:30:35,356 --> 00:30:36,409 a 40. 662 00:30:37,128 --> 00:30:38,566 I don't know if they got... He never 663 00:30:38,566 --> 00:30:40,324 came back to us So we really didn't 664 00:30:40,324 --> 00:30:42,162 tell him what he wanted to hear. But, 665 00:30:44,489 --> 00:30:44,989 the 666 00:30:45,522 --> 00:30:49,436 mental thing that people do, and it's different. 667 00:30:50,048 --> 00:30:52,668 It's like the first article that you said, 668 00:30:53,638 --> 00:30:56,665 they're not letting their gut work into the 669 00:30:56,665 --> 00:30:59,236 equation. They have bought into this mental 670 00:31:00,171 --> 00:31:02,242 construct of what's exactly gonna happen. 671 00:31:02,974 --> 00:31:05,622 Yeah. And sometimes it's about 672 00:31:05,998 --> 00:31:08,305 admitting that you're wrong. Yeah. That is very 673 00:31:08,305 --> 00:31:10,772 hard for people to do. Sure. Well, and 674 00:31:10,772 --> 00:31:11,568 it's it's... 675 00:31:12,700 --> 00:31:13,980 Admitting that you're wrong, 676 00:31:14,460 --> 00:31:16,220 or but it it what it first... What 677 00:31:16,220 --> 00:31:18,000 you first have to do is actually 678 00:31:18,299 --> 00:31:18,799 examine 679 00:31:19,100 --> 00:31:21,259 why you're taking the actions that you're taking. 680 00:31:21,834 --> 00:31:24,698 You know, are you concerned about politics? Are 681 00:31:24,698 --> 00:31:26,766 you concerned about interest rates? Are you concerned... 682 00:31:27,005 --> 00:31:29,232 What what... What's driving? Are you just even 683 00:31:29,232 --> 00:31:30,186 concerned more... 684 00:31:31,158 --> 00:31:34,348 Emotional. Are you concerned about being broke? Right? 685 00:31:34,508 --> 00:31:36,502 Are you concerned you're not gonna have anything? 686 00:31:36,741 --> 00:31:38,517 Yeah. Are are you concerned 687 00:31:38,974 --> 00:31:40,250 that you're gonna miss out? 688 00:31:41,779 --> 00:31:44,907 On getting more than what you could get 689 00:31:45,363 --> 00:31:48,469 or you're also worried about losing what you've 690 00:31:48,469 --> 00:31:49,266 got. Right? 691 00:31:49,917 --> 00:31:52,385 Those are big emotions. Mh. And I think 692 00:31:52,385 --> 00:31:54,318 they under penn just about every 693 00:31:54,933 --> 00:31:56,844 economic decision that a lot of people make. 694 00:31:57,242 --> 00:31:57,321 Right. 695 00:31:58,131 --> 00:31:59,901 And so if you can identify 696 00:32:00,670 --> 00:32:02,813 what what what the genesis of that is, 697 00:32:03,051 --> 00:32:04,559 then you can start to go in and 698 00:32:04,559 --> 00:32:07,116 question and and and and poke at it. 699 00:32:07,355 --> 00:32:09,985 Ask yourself. I ask yourself. And, I mean, 700 00:32:10,144 --> 00:32:13,273 that's that's what we do whenever we're 701 00:32:14,062 --> 00:32:16,868 talking about an investment or, you know, the 702 00:32:17,004 --> 00:32:19,707 the overall direction of where things are going. 703 00:32:19,866 --> 00:32:22,672 We're we're trying to dis still down 704 00:32:23,858 --> 00:32:25,954 we we we all talk to our customers, 705 00:32:26,571 --> 00:32:27,789 and we know 706 00:32:28,167 --> 00:32:29,683 what they're feeling, 707 00:32:30,242 --> 00:32:32,965 and we're we're watching the markets, we're watching 708 00:32:32,965 --> 00:32:36,410 the investments. And when we're discussing the portfolio, 709 00:32:37,502 --> 00:32:40,288 we're dis instill all that down and into 710 00:32:40,288 --> 00:32:41,519 a... We're workable 711 00:32:42,135 --> 00:32:43,591 solution. What's the biggest 712 00:32:44,924 --> 00:32:46,518 you talk to a lot of people. 713 00:32:47,474 --> 00:32:48,293 What is 714 00:32:48,923 --> 00:32:49,821 the biggest 715 00:32:50,355 --> 00:32:53,059 emotion you see and then maybe the top 716 00:32:53,059 --> 00:32:53,377 3. 717 00:32:54,888 --> 00:32:55,945 The biggest 718 00:32:56,400 --> 00:32:57,138 emotion is 719 00:32:58,083 --> 00:33:01,097 the innate fear of out living your money. 720 00:33:01,653 --> 00:33:03,794 Is is that really that that's that's the 721 00:33:03,794 --> 00:33:04,825 biggest 1. Yeah. 722 00:33:06,512 --> 00:33:06,911 When... 723 00:33:07,390 --> 00:33:08,348 I'll put the caveat, 724 00:33:08,906 --> 00:33:10,183 when markets are bad. 725 00:33:11,221 --> 00:33:12,498 When markets are good, 726 00:33:13,136 --> 00:33:13,636 it's 727 00:33:14,508 --> 00:33:17,082 Fo. You know, why why is 728 00:33:17,858 --> 00:33:18,816 XYZ 729 00:33:18,816 --> 00:33:22,099 stock doing this, and I'm doing this or 730 00:33:22,099 --> 00:33:25,361 fo is fear missing out. And so you 731 00:33:25,361 --> 00:33:26,179 think that 732 00:33:27,032 --> 00:33:29,976 that's really just greed though, disguised is fear. 733 00:33:30,388 --> 00:33:32,300 Isn't it. Yeah. It it is. 734 00:33:33,414 --> 00:33:35,268 It... But it cuts to the same 735 00:33:35,804 --> 00:33:36,122 concern. 736 00:33:36,919 --> 00:33:38,830 You know, I've gotta get everything I can... 737 00:33:39,084 --> 00:33:41,395 Get when think... When the git good so 738 00:33:41,395 --> 00:33:43,967 that I don't which 1 stronger. 739 00:33:44,822 --> 00:33:48,025 Fo when the market's going up, or fear 740 00:33:48,025 --> 00:33:49,858 losing everything when it's going down. 741 00:33:50,576 --> 00:33:51,315 Which 1 742 00:33:51,771 --> 00:33:54,162 Well, a kinda pity that Oh, no. I 743 00:33:54,321 --> 00:33:56,989 I think Honestly, I I think Fo 744 00:33:57,764 --> 00:34:00,497 is be is is is harder 745 00:34:01,113 --> 00:34:02,388 for people to swallow, 746 00:34:03,026 --> 00:34:05,660 because, or or see what they're doing to 747 00:34:05,660 --> 00:34:06,532 themselves. Yeah. Yeah. 748 00:34:07,324 --> 00:34:09,147 I wouldn't have guessed that. Yeah. I really. 749 00:34:09,623 --> 00:34:11,025 I thought he was was gonna say save 750 00:34:11,302 --> 00:34:13,050 Yeah. I I really think it is because 751 00:34:13,050 --> 00:34:13,606 the other... 752 00:34:15,273 --> 00:34:16,782 When when markets are bad, 753 00:34:17,656 --> 00:34:18,927 you're looking at something, 754 00:34:19,562 --> 00:34:21,565 you can explain it though. In this... When 755 00:34:21,724 --> 00:34:22,998 I say explain that, you can say, okay. 756 00:34:23,237 --> 00:34:24,851 This is what's happened in 757 00:34:25,227 --> 00:34:27,138 the market in the economy and this or 758 00:34:27,138 --> 00:34:29,063 that, and there's a reason for it... And 759 00:34:29,063 --> 00:34:31,205 you can explain. And then there's, okay. Because 760 00:34:31,205 --> 00:34:32,871 that's happened. Here's the opportunity. 761 00:34:33,427 --> 00:34:34,379 With the other, 762 00:34:35,331 --> 00:34:37,235 your look... You're... It's more of a important, 763 00:34:37,728 --> 00:34:40,043 projection into the future because you're saying, okay, 764 00:34:40,203 --> 00:34:41,262 this this 765 00:34:41,639 --> 00:34:43,316 asset class or this stock. 766 00:34:44,114 --> 00:34:46,842 Yeah. It's gone way up but here's the 767 00:34:46,842 --> 00:34:49,154 problem that's gonna happen at some point down 768 00:34:49,154 --> 00:34:52,184 the future. And so it... It's fo, it's 769 00:34:52,184 --> 00:34:54,736 it's harder for people I think to... The 770 00:34:54,736 --> 00:34:57,218 the the... Read part of it. I think 771 00:34:57,218 --> 00:34:58,889 that's a harder pill for some people to 772 00:34:58,889 --> 00:35:01,036 swallow. Really? No. That really do. 773 00:35:02,641 --> 00:35:05,101 The other, I mean, when markets are down, 774 00:35:06,530 --> 00:35:08,911 it's not fun for anybody. Nobody likes it 775 00:35:08,911 --> 00:35:10,204 down. I think 776 00:35:11,867 --> 00:35:13,723 for... I mean, me, personally, 777 00:35:14,180 --> 00:35:16,652 I think a down market is harder emotionally. 778 00:35:17,051 --> 00:35:18,088 For me, personally. 779 00:35:19,284 --> 00:35:20,582 But I think for 780 00:35:21,214 --> 00:35:21,693 clients, 781 00:35:22,332 --> 00:35:22,572 the... 782 00:35:23,211 --> 00:35:26,327 Yeah. They tend to kind of in some 783 00:35:26,327 --> 00:35:27,466 ways, almost 784 00:35:28,178 --> 00:35:30,567 not look at it. They... There any denial 785 00:35:30,567 --> 00:35:32,718 something. Yeah. Yeah. And that's, 786 00:35:33,594 --> 00:35:36,381 down market. It's actually made us. 787 00:35:37,590 --> 00:35:39,657 Because we have been able to buy things 788 00:35:39,657 --> 00:35:42,623 in down markets that did extremely well, 789 00:35:43,236 --> 00:35:44,429 you know, over the next, 790 00:35:45,304 --> 00:35:46,757 few years. And 791 00:35:48,905 --> 00:35:52,258 and we... We've been very opportunistic in down 792 00:35:52,258 --> 00:35:53,775 markets over the years, 793 00:35:54,414 --> 00:35:56,170 and it's worked well for us. Mh. 794 00:35:56,663 --> 00:35:57,163 So 795 00:35:59,530 --> 00:36:00,905 you have to assume 796 00:36:03,033 --> 00:36:03,670 what if? 797 00:36:05,672 --> 00:36:07,045 Most of the prevailing 798 00:36:07,418 --> 00:36:07,918 wisdom 799 00:36:08,925 --> 00:36:09,559 is wrong. 800 00:36:10,115 --> 00:36:11,146 Yeah. If you can... 801 00:36:12,192 --> 00:36:14,569 That doesn't mean it's always gonna be wrong. 802 00:36:15,203 --> 00:36:16,787 But if you can sort of take the 803 00:36:16,787 --> 00:36:18,610 other side of the trade, 804 00:36:19,980 --> 00:36:21,739 when it's a slam dunk go in the 805 00:36:21,739 --> 00:36:22,539 other direction, 806 00:36:23,659 --> 00:36:25,019 You've got a chance. 807 00:36:27,273 --> 00:36:29,336 Of it not working the way the crowd 808 00:36:29,336 --> 00:36:31,400 thinks it's gonna work, and then you could 809 00:36:31,400 --> 00:36:32,431 do okay. Yeah. 810 00:36:33,146 --> 00:36:34,201 Well, it's it's 811 00:36:34,748 --> 00:36:37,137 like, with that 1 scenario you're talking where 812 00:36:37,137 --> 00:36:38,251 they were all in cash. 813 00:36:39,684 --> 00:36:40,639 They hit it right, 814 00:36:41,356 --> 00:36:42,964 1 out of the 2 times. So they 815 00:36:42,964 --> 00:36:44,724 got it right to say, okay. I'm gonna 816 00:36:44,724 --> 00:36:46,484 sell before the financial crisis. 817 00:36:47,125 --> 00:36:47,605 And then... 818 00:36:48,244 --> 00:36:50,817 But they didn't buy back in. And that's 819 00:36:50,817 --> 00:36:52,732 what's caught... You you you have to be 820 00:36:52,732 --> 00:36:54,029 right both times 821 00:36:54,407 --> 00:36:56,640 in order for that to work out. And 822 00:36:56,640 --> 00:36:59,772 that gets into market timing and trading and 823 00:37:01,758 --> 00:37:04,628 it's it's it's a binary decision that, you 824 00:37:04,628 --> 00:37:07,258 know, this has to happen. And if that 825 00:37:07,258 --> 00:37:07,896 event happens, 826 00:37:08,388 --> 00:37:09,978 this will be the reality react. If you 827 00:37:09,978 --> 00:37:12,147 make 1 market timing 828 00:37:14,508 --> 00:37:16,257 decision that ends up being right, 829 00:37:17,623 --> 00:37:19,609 you have to be willing to make the 830 00:37:19,609 --> 00:37:20,403 next 1. Right? 831 00:37:21,198 --> 00:37:23,342 You can't just say, 0II 832 00:37:23,342 --> 00:37:25,328 killed it on that trade. And now I 833 00:37:25,328 --> 00:37:26,838 don't have to make any more decisions. 834 00:37:27,650 --> 00:37:30,789 You're now engaged in an ongoing process 835 00:37:32,769 --> 00:37:36,150 of timing the market. Mh. It's time 836 00:37:37,181 --> 00:37:39,164 when you got that 1. Right, now you 837 00:37:39,164 --> 00:37:43,153 gotta make another decision. So... Yeah. And so 838 00:37:43,367 --> 00:37:44,501 circling back to 839 00:37:45,047 --> 00:37:46,080 money market funds. 840 00:37:47,112 --> 00:37:50,685 You know, the the idea of once rates 841 00:37:50,685 --> 00:37:52,694 start coming down, then I will 842 00:37:53,005 --> 00:37:54,605 do this or that. I will buy a 843 00:37:54,605 --> 00:37:55,105 longer 844 00:37:55,724 --> 00:37:57,885 duration bond or bond fund whatever it is. 845 00:37:58,684 --> 00:38:01,264 The problem the market will have already reacted 846 00:38:01,324 --> 00:38:04,371 to rates coming down, meaning the prices of 847 00:38:04,371 --> 00:38:06,523 what you're gonna be buying has gone up. 848 00:38:07,639 --> 00:38:10,212 This is why it's important to have 849 00:38:10,525 --> 00:38:13,880 a portfolio with a long term focus. You 850 00:38:13,880 --> 00:38:16,357 know, we don't know when interest rates are 851 00:38:16,357 --> 00:38:19,427 gonna go down, but in our clients 852 00:38:19,804 --> 00:38:22,916 accounts, we own some longer term bonds. Yeah. 853 00:38:23,555 --> 00:38:24,055 Because 854 00:38:24,672 --> 00:38:27,154 at some point, rates are likely gonna go 855 00:38:27,154 --> 00:38:30,118 down. Yeah. And so it's an income. Even 856 00:38:30,571 --> 00:38:32,478 even if they stay the same right now 857 00:38:32,478 --> 00:38:34,171 for a while, we're getting a nice 858 00:38:34,880 --> 00:38:38,160 yield on those things. It... Yeah. See, this 859 00:38:38,160 --> 00:38:40,640 is why we focus on dividends. You can 860 00:38:40,640 --> 00:38:43,119 be wrong timing wise for a long period 861 00:38:43,119 --> 00:38:45,393 of time, But if you have good dividend 862 00:38:45,692 --> 00:38:47,151 income and you're not 863 00:38:47,690 --> 00:38:50,027 basing everything upon the capital 864 00:38:50,646 --> 00:38:52,736 appreciation side of the deal. You're happy with 865 00:38:52,736 --> 00:38:56,005 the dividend income. Then that you're not a 866 00:38:56,005 --> 00:38:58,238 total loser because, you know, you've you've got 867 00:38:58,238 --> 00:39:00,550 the income. Right. It be laugh about. 868 00:39:01,123 --> 00:39:02,632 I'm laughing because and you're not a total 869 00:39:02,632 --> 00:39:04,538 loser on that. I think the people who 870 00:39:04,538 --> 00:39:06,602 try to market time. I thought end up 871 00:39:06,602 --> 00:39:08,588 being losers most of the time because it's 872 00:39:08,588 --> 00:39:09,937 such a difficult thing to is. 873 00:39:10,508 --> 00:39:12,098 And when you realize, hey, 874 00:39:12,893 --> 00:39:14,801 this is really hard and people who just 875 00:39:14,801 --> 00:39:16,471 put money in a stock market, but put 876 00:39:16,471 --> 00:39:18,315 it in an index fund, have outperformed. To 877 00:39:18,315 --> 00:39:20,235 me. When you come to that realization, that's 878 00:39:20,235 --> 00:39:21,675 when you start getting better returns, 879 00:39:22,394 --> 00:39:24,074 when you're when you're trying to market time, 880 00:39:24,315 --> 00:39:25,809 when you just give up, trying to mark 881 00:39:26,009 --> 00:39:28,396 time. It works well for some people who 882 00:39:28,396 --> 00:39:30,784 are lucky short term. But, you know, the 883 00:39:30,784 --> 00:39:32,296 old saying I... 1 of my favorite quotes. 884 00:39:32,455 --> 00:39:34,046 They're are old traders. They're are bold traders, 885 00:39:34,206 --> 00:39:36,291 but there are no old bold traders. I 886 00:39:36,291 --> 00:39:38,046 mean, it just... It works for a while 887 00:39:38,046 --> 00:39:39,959 and then it stops. So, I I mean, 888 00:39:40,597 --> 00:39:42,032 yeah. If you're in the business long enough, 889 00:39:42,271 --> 00:39:43,946 you come to that realization and you change 890 00:39:43,946 --> 00:39:46,347 your attack Well, I remember years ago, there's 891 00:39:46,347 --> 00:39:49,210 a well known trader named Paul Tudor Jones. 892 00:39:50,164 --> 00:39:52,628 And he he said, ultimately, he was a 893 00:39:52,628 --> 00:39:53,423 big trader. 894 00:39:54,313 --> 00:39:57,757 You, back 25, 30 years ago. Ultimately, 895 00:39:58,132 --> 00:40:01,130 he said, all traders ultimately go broke and 896 00:40:01,408 --> 00:40:02,044 have nothing. 897 00:40:02,679 --> 00:40:04,213 Well, he's like a trillion. 898 00:40:04,746 --> 00:40:06,177 So he's well... He's the exception. 899 00:40:06,893 --> 00:40:07,767 Yeah. He's he... 900 00:40:08,483 --> 00:40:10,493 I well he figured out what 901 00:40:11,360 --> 00:40:13,190 Harry Dent was the... He wrote a book 902 00:40:13,190 --> 00:40:14,861 that got a lot of attention back in 903 00:40:14,861 --> 00:40:17,646 the late nineties about Dow 25000 904 00:40:17,646 --> 00:40:19,476 and everybody thought oh, gosh, he's he's wrong. 905 00:40:19,730 --> 00:40:21,807 Praise. He's got huge fame, but then the 906 00:40:21,807 --> 00:40:23,884 the Dow went up. Well, he's written books 907 00:40:23,884 --> 00:40:25,802 since then that his predictions have been wrong 908 00:40:25,802 --> 00:40:27,320 about. So that's what I'm saying. It's... You, 909 00:40:27,480 --> 00:40:29,089 he can... You can guess right. I mean, 910 00:40:29,168 --> 00:40:31,239 ralph fa and mp, who was a prudential 911 00:40:31,557 --> 00:40:33,490 animal or a a market strategist 912 00:40:33,945 --> 00:40:36,827 nailed the 87 crash, and Yeah. He hadn't 913 00:40:36,827 --> 00:40:38,581 been right sense. You know, There there there 914 00:40:38,581 --> 00:40:40,016 several of those. They used to be a 915 00:40:40,016 --> 00:40:42,886 guy named Henry Kaufman. You remember that name? 916 00:40:43,125 --> 00:40:45,764 Yes. This was back in the Late seventies 917 00:40:45,764 --> 00:40:48,617 early eighties Solomon brothers. When they were affirmed. 918 00:40:49,092 --> 00:40:51,573 Henry Kaufman was this guy that would 919 00:40:52,280 --> 00:40:55,159 predict the markets. This... And everybody listened to 920 00:40:55,159 --> 00:40:56,280 him. Ed K, 921 00:40:56,679 --> 00:40:59,079 a guy with Pain Weber when I was 922 00:40:59,079 --> 00:41:01,893 there. Ed Ke was this You know, they... 923 00:41:02,052 --> 00:41:04,365 They... If he walked into a room, people 924 00:41:04,365 --> 00:41:05,104 would just 925 00:41:05,481 --> 00:41:08,592 stop talking, and he was considered this guru. 926 00:41:09,230 --> 00:41:11,871 And then they fired him. You know, because 927 00:41:11,871 --> 00:41:12,530 he didn't 928 00:41:13,457 --> 00:41:14,670 he didn't correctly 929 00:41:15,518 --> 00:41:18,293 anticipate the 01002, 930 00:41:19,265 --> 00:41:21,664 meltdown in the S and P 500. And 931 00:41:21,664 --> 00:41:23,684 he he didn't tell his clients what the 932 00:41:23,744 --> 00:41:26,144 and he lost his job and all the 933 00:41:26,144 --> 00:41:27,905 trapping that went along with it. Yeah. 934 00:41:28,799 --> 00:41:29,039 Well, 935 00:41:31,276 --> 00:41:32,655 when when you have 936 00:41:33,833 --> 00:41:36,790 down markets or a big up market What's 937 00:41:36,790 --> 00:41:37,762 the market do. 938 00:41:38,876 --> 00:41:40,706 It's going to go up, and it's going 939 00:41:40,706 --> 00:41:41,422 to go down. 940 00:41:43,491 --> 00:41:46,210 Multiple times. III 941 00:41:46,210 --> 00:41:47,585 didn't know you were an economist. 942 00:41:51,954 --> 00:41:53,233 Some days, it's going to go up a 943 00:41:53,233 --> 00:41:54,991 lot, and some days it's going to go 944 00:41:54,991 --> 00:41:55,470 down whole lot. 945 00:41:56,749 --> 00:41:58,427 Another 1 of those tons where we need 946 00:41:58,427 --> 00:41:58,927 video. 947 00:42:00,759 --> 00:42:02,934 I'm sorry. Go ahead. Never. So 948 00:42:03,631 --> 00:42:05,387 when when you have when you have a 949 00:42:05,387 --> 00:42:07,541 a big drop so this year, for example. 950 00:42:08,352 --> 00:42:08,987 The market, 951 00:42:09,621 --> 00:42:12,421 as a whole, it's been a pretty boring 952 00:42:12,477 --> 00:42:14,936 bull market. When you just look at the 953 00:42:14,936 --> 00:42:15,808 SP5 954 00:42:15,808 --> 00:42:18,365 hundred, good ones. Yeah. Yeah. But you look 955 00:42:18,365 --> 00:42:20,112 under the surface and there's a lot of 956 00:42:20,112 --> 00:42:22,099 stocks in the in the market that of, 957 00:42:22,257 --> 00:42:24,264 you know, that are down. In for the 958 00:42:24,264 --> 00:42:26,980 year or flat and... You know, so... But 959 00:42:26,980 --> 00:42:29,138 17 percent of the stocks in the S 960 00:42:29,138 --> 00:42:31,215 and P 500 are down 10 percent or 961 00:42:31,215 --> 00:42:33,534 more. Year to date. Yeah. When this... When 962 00:42:33,534 --> 00:42:35,042 that's why there's a wayne. 963 00:42:36,787 --> 00:42:38,636 Has not done as well with the 964 00:42:39,263 --> 00:42:40,717 lower talk weighted 965 00:42:41,172 --> 00:42:43,559 yeah deal. Yeah. Equal weighted. Yeah. Yeah. 966 00:42:44,275 --> 00:42:44,775 But 967 00:42:45,309 --> 00:42:45,706 when... 968 00:42:46,278 --> 00:42:49,629 You start having a down market, which will 969 00:42:49,629 --> 00:42:51,942 happen eventually, and we all know that. So 970 00:42:51,942 --> 00:42:55,531 when that happens, remember the the returns cluster, 971 00:42:56,265 --> 00:42:57,625 When I when I say that, when you 972 00:42:57,625 --> 00:42:58,445 have volatility, 973 00:42:59,465 --> 00:43:02,025 you... Your biggest down will be followed by 974 00:43:02,025 --> 00:43:03,305 some of your biggest updates. 975 00:43:04,117 --> 00:43:06,427 And that's when market timing gets even harder. 976 00:43:06,587 --> 00:43:08,339 So you could... I mean, you think back 977 00:43:08,339 --> 00:43:08,839 to 978 00:43:09,295 --> 00:43:12,401 the financial crisis 20 20, 20 22, 979 00:43:12,973 --> 00:43:15,199 you... When you have a a big drop, 980 00:43:15,358 --> 00:43:17,266 a 2 or 3 percent drop in a 981 00:43:17,266 --> 00:43:17,505 day, 982 00:43:18,617 --> 00:43:20,605 typically pretty soon after That's when you're gonna 983 00:43:20,605 --> 00:43:22,765 have 1 of the biggest updates. And so 984 00:43:22,765 --> 00:43:24,750 when you're trying to time the market, 985 00:43:25,305 --> 00:43:27,845 you've... We're not talking, you know, a matters 986 00:43:27,845 --> 00:43:30,162 of, you know, weeks here. We're talking... In 987 00:43:30,162 --> 00:43:33,581 some cases, literally matters of hours where you 988 00:43:33,581 --> 00:43:36,286 you would have to be out and back 989 00:43:36,286 --> 00:43:38,035 in in order for that to work out 990 00:43:38,035 --> 00:43:39,760 in your favor. And so 991 00:43:40,835 --> 00:43:42,907 with retirement with retirement investing, 992 00:43:43,465 --> 00:43:46,334 it's all about putting time back on the 993 00:43:46,334 --> 00:43:47,052 investors side. 994 00:43:47,863 --> 00:43:49,377 That's what we try to do with the 995 00:43:49,377 --> 00:43:52,165 investment approach, put time back on the side 996 00:43:52,165 --> 00:43:54,418 because you need regular, 997 00:43:55,210 --> 00:43:55,710 withdrawals 998 00:43:56,089 --> 00:43:57,449 income from your portfolio. 999 00:43:58,409 --> 00:43:59,849 Growth isn't consistent. 1000 00:44:00,250 --> 00:44:01,630 And so dividends 1001 00:44:03,057 --> 00:44:05,514 income from the portfolio that's much more consistent, 1002 00:44:05,673 --> 00:44:09,398 which puts that equation back into more equilibrium. 1003 00:44:10,287 --> 00:44:12,120 Me and it gives us cover for not 1004 00:44:12,120 --> 00:44:14,112 being good at Market diamond. So we can 1005 00:44:14,112 --> 00:44:15,944 just say but go for the dividend. I 1006 00:44:15,944 --> 00:44:18,593 remember here in a Traders say 1 time, 1007 00:44:18,992 --> 00:44:20,451 you have to understand 1008 00:44:20,990 --> 00:44:21,490 that 1009 00:44:22,188 --> 00:44:24,046 unpredictability has to become predictable. 1010 00:44:24,425 --> 00:44:24,925 So 1011 00:44:25,797 --> 00:44:27,391 What a great way to wrap the hour? 1012 00:44:27,550 --> 00:44:29,543 You've been listening to the Tom Du show 1013 00:44:29,543 --> 00:44:31,456 brought to you by pre financial group where 1014 00:44:31,456 --> 00:44:33,184 we make your money work for you with 1015 00:44:33,304 --> 00:44:35,382 flight johnson, Chad Stu in our host Tom 1016 00:44:35,542 --> 00:44:36,101 Du debris. 1017 00:44:36,980 --> 00:44:38,738 If you would like to come see us. 1018 00:44:39,297 --> 00:44:42,028 85923304 1019 00:44:42,028 --> 00:44:44,980 hundred as our phone number. 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