4/14/25 Recession-Proof Businesses, Interest Rate Impacts, and the Two-Time Lottery Winner

The Moneywise Radio Show and Podcast Monday, April 14th BE MONEYWISE. Moneywise Wealth Management I "The Moneywise Guys" podcast call: 661-847-1000 text in anytime: 661-396-1000 website: www. MoneywiseGuys.com facebook: Moneywise_Wealth_Manageme instagram: MoneywiseWealthManagement

• 0:00Speaker 00

  From the padded radio room off Stockdale Highway, here is Money Wise. Call or text in at 661-396-1000.

• 0:09Speaker 01

  I need a dollar, dollar, dollar, that's what I need. Hey, hey. Well, I need a dollar, dollar, dollar, that's what I need. Hey, hey. Said I need a dollar, dollar, dollar, that's what I need. And if I share with you my story, would you share your dollar with me?

• 0:30Speaker 02

  Securities offered through SEF Securities, Inc., member FINRA/SIPC. Investment advisory services offered through SEF Investment Advisors, Inc. SEF Securities, Inc. and Money Wise Wealth Management are independently owned and operated.

• 0:40Speaker 00

  Now, let's start the Money Wise Show.

• 0:43Speaker 03

  Welcome to the Money Wise Show. We are live from the Gero Ellis padded radio room off Stockdale Highway on ESPN Bakersfield, 1230 a.m., 101.1 FM, and always streaming at MoneyWiseGuys.com. You can text into the show 24 hours a day at 661-396-1000. Today, we're your hosts. I'm Sharad Waite and...

• 1:02Speaker 04

  Sammy Abiawi.

• 1:03Speaker 03

  Sammy Abiawi. Great having you. Happy Monday.

• 1:06Speaker 04

  Happy Monday to you, too. Excited to be here today.

• 1:08Speaker 03

  I'm excited to talk to you.

• 1:10Speaker 04

  Yeah.

• 1:10Speaker 03

  It's been such a wild ride in the markets. There's a lot to talk about today in terms of the tariffs, where we stand, and how the market's reacting, but let's get to the messages first. Can we do that?

• 1:22Speaker 04

  Sure. Let me get to that.

• 1:24Speaker 03

  Okay.

• 1:24Speaker 04

  We have one that says, "Are real estate taxes the same as property taxes? Thanks and have a great day."

• 1:31Speaker 03

  So, yeah, you and I both kind of just said we couldn't find a really a difference.

• 1:36Speaker 04

  No.

• 1:37Speaker 03

  I think it's like, it's just the vernacular.

• 1:41Speaker 04

  Yes.

• 1:41Speaker 03

  It's just whatever words you want to choose, but I don't, I can't think of any difference between real estate taxes or property taxes. Property taxes only...

• 1:51Speaker 03

  Issued or only required from real estate. Like you don't have a property tax on, at least in America. Maybe it's different somewhere else.

• 1:58Speaker 04

  So you, you, you could sometimes have personal property tax, like business, uh, business equipment, boats, vehicle, depending on, you know, which state you live in. But truly, when you, when you say real estate taxes and property taxes, a lot of the time, I would say 99.9% of the time, they mean the same. It's the same thing.

• 2:15Speaker 03

  Yeah, I, I guess there could be a time where like, so you're, you're, where your property tax, like the state of California, in the United States, your state is the one that will generally impose a tax on your property. And I guess there could be some jurisdictions where they have a different tax on real estate than your own pro- I don't know. I don't think so. I think it's all the same.

• 2:45Speaker 04

  I think it's, I think it's the same. I personally believe, yeah.

• 2:48Speaker 03

  I'm really stretching to find a difference, but hopefully that answers the question. Great question from our listeners. Let's get to our next comment.

• 2:55Speaker 04

  Yes, love the show and wanted to share. I was listening to the episode that you mentioned, the chances of winning the lottery. And as soon as I got home, first thing that popped up on my news feed was sharing that a lady in Virginia had won the Powerball jackpot for the second time. Wow. What are those chances?

• 3:13Speaker 03

  That is, the chances are almost zero. According to online sources, that's a one in 91 quadrillion chance of winning it twice. No, actually the mega millions. I just looked into the mega millions. Maybe it's different in the Powerball.

• 3:30Speaker 04

  Yeah.

• 3:30Speaker 03

  Is it's, you have better odds with Powerball than you do with mega millions.

• 3:34Speaker 04

  Huh.

• 3:34Speaker 03

  But the mega millions is one in three, one in about 300 million chance of winning. And this was, this was on a show that I, that I had, I was on last week. You weren't on that Sammy, but I always, I always get a kick out of seeing what the odds are.

• 3:50Speaker 04

  Never, I never won.

• 3:51Speaker 03

  You've never won the lottery?

• 3:53Speaker 04

  No, I sold a ticket one time. I was a very poor Cal State student, working as a clerk at a gas station. And the guy walked in, bought a dollar scratcher. I got twenty thousand dollars.

• 4:04Speaker 03

  Holy cow.

• 4:05Speaker 04

  I'm not kidding.

• 4:07Speaker 03

  Uh, so what did that give for you? How much did you make?

• 4:10Speaker 04

  Nothing. The store did, not me. But I was so poor, Sherrod, I was just like, how come, man, I could have just pulled that thing as scruffy as myself.

• 4:18Speaker 03

  Uh, yeah, that's a good though. You, you, you probably sold a lot of those lottery tickets though.

• 4:22Speaker 04

  I did, I did.

• 4:23Speaker 03

  While you were working at the gas station.

• 4:24Speaker 04

  Now, here's the thing. Now, talking about odds, that same guy won five million bucks at Vegas.

• 4:30Speaker 03

  What?

• 4:30Speaker 04

  I'm not kidding. Same guy. He used to work for the, the prison on Lardo Highway. And he, he was a regular at the gas station I used to work at.

• 4:37Speaker 03

  Wow. Did he quit his job?

• 4:40Speaker 04

  I don't know. I don't know. I saw his picture when I was in Vegas.

• 4:44Speaker 03

  Wanted?

• 4:45Speaker 04

  I saw his picture. Winning five million dollars. I'm like.

• 4:48Speaker 03

  Wow. Hey, what's Jimmy doing?

• 4:52Speaker 04

  And here's me, poor Sammy. Barely can afford my tuition.

• 4:57Speaker 03

  So I, I just looked at Powerball jackpot is slightly better than the, than the, uh, uh, the larger mega millions. The Powerball chances are one in two hundred and ninety million versus a hundred, uh, versus one in three hundred million.

• 5:16Speaker 04

  Wow.

• 5:16Speaker 03

  But your chances of becoming US president are about one in ten million, so significantly better. Uh, movie star, one in one and a half million. Being struck by lightning in your lifetime, one in fifteen thousand. There you go. That's much better odds.

• 5:33Speaker 04

  Ooh.

• 5:33Speaker 03

  Much better.

• 5:34Speaker 04

  Stay indoors when, when, when it's raining or there's lightning.

• 5:37Speaker 03

  Yeah, that's right. Cause you got a one in fifteen thousand chance of getting struck. Finding a pearl in an oyster, one in twelve thousand. Being crushed by an asteroid, one in seventy-four million. That means you're, you're, you're like, you're four times more likely to get crushed by an asteroid than you are winning the lottery.

• 5:57Speaker 04

  That's sad.

• 5:58Speaker 03

  It's so sad.

• 5:59Speaker 04

  It is sad.

• 6:00Speaker 03

  Yeah. There have been a few people, as our listener mentioned, that have won twice. There's a few people that have known to win multiple times. Joan Ginther, she won four times totaling over $200 million. She had a PhD in statistics from Stanford in statistics.

• 6:18Speaker 04

  Wow.

• 6:19Speaker 03

  Which is unbelievable.

• 6:20Speaker 04

  So she used a statistic stuff knowledge to, wow.

• 6:24Speaker 03

  Yeah.

• 6:24Speaker 04

  It's like a movie. This should be a movie.

• 6:26Speaker 03

  I think there has been movies about this. In fact, there was, we talked about this on the show years ago where mathematically, if you could buy enough tickets, you know, eventually you get to the point where you would, there's no way you could lose because you've bought, you know, a million. I can't remember what the number was, but say you buy a million tickets. The problem is that you, there's no way to buy that many tickets. They don't produce that many tickets and there would be no way for one individual to buy that many. But if they could, then theoretically, they could, they could do it. I think the same thing is with the numbers. Like when you do the mega millions, it's like, well, you'd have to, the amount of time that it would take to submit all of those by then,

• 7:11Speaker 03

  it would, it just wouldn't work. You can't, you can't get enough, you can't process it enough to be able to up the odds. But maybe this PhD person figured it out.

• 7:20Speaker 04

  Well, I'm gonna keep my day job.

• 7:22Speaker 03

  Yeah, definitely keep your day job. The lottery is a loser's game. You're just, you're so much, you're better off just taking that money and burning it than you are buying that lottery ticket. It's been called a dummy tax or a stupid tax.

• 7:39Speaker 04

  Oh yeah, because you just go and just.

• 7:41Speaker 03

  Yeah.

• 7:41Speaker 04

  Yeah.

• 7:42Speaker 03

  Because the chances of winning are nothing, you know, and, and yet.

• 7:45Speaker 04

  They make fun of me when I go to Vegas and I go next to that slot machine. That's what it's called, right?

• 7:50Speaker 03

  Yeah.

• 7:51Speaker 04

  And I put a couple of dollars there and I play and then I win. Guess what? I walk away.

• 7:56Speaker 03

  Yeah.

• 7:57Speaker 04

  I walk away.

• 7:58Speaker 03

  Yeah.

• 7:58Speaker 04

  Hundred fifty, two hundred dollars is still a win. I'm walking away.

• 8:01Speaker 03

  Take it.

• 8:02Speaker 00

  That's a steak dinner.

• 8:03Speaker 04

  That's right. Steak dinner.

• 8:05Speaker 03

  That's right. Hey, interesting news today. Well, first of all, the markets ended up in positive territory. I think the markets are still riding on the positive news of President Trump putting a ninety day pause on most tariffs. Of course, he increased it with China. It's up to, what is it? Hundred and fifty percent, something?

• 8:23Speaker 04

  Hundred fifty percent. Did China?

• 8:25Speaker 03

  China retaliated, yeah.

• 8:27Speaker 04

  Hundred eighty-four percent or something?

• 8:28Speaker 03

  They didn't go above us. Hundred and twenty-five percent, I think, is where China has landed. But what kind of changed today is President Trump has sort of backtracked a little bit on the tariffs with China. And he says, okay, we're going to exclude some of...

• 8:45Speaker 04

  Electronics.

• 8:45Speaker 03

  Yeah.

• 8:46Speaker 04

  He started with electronics first.

• 8:47Speaker 03

  Right.

• 8:48Speaker 04

  And now there's talk about cars or vehicles.

• 8:50Speaker 03

  Right. Which is like, my suspicion, Sammy, is that he's just getting pressure from his constituents.

• 8:56Speaker 04

  Yeah, you and I talked about this, I think, two weeks ago on the show. I think this is just a pressure, you know, the art of the deal.

• 9:03Speaker 03

  Yeah.

• 9:03Speaker 04

  He's trying to bring people back to the table where he can renegotiate some of the deals that America has with some of the partners we've had for years. For instance, I mean, I know this, Morocco and the United States has a free trade agreement, right? But Morocco was charging the US certain tariffs on certain products that are competing directly with some of the small industries that they have. Right? So he put ten percent on Morocco, just not to retaliate, just to make it, you know, fair or parity between the two. But now, I think, and Morocco is one of the oldest allies of the United States, and he's still...

• 9:42Speaker 03

  You said it was the first, was it the first US embassy is in Morocco?

• 9:46Speaker 04

  Yeah, the first country to recognize the United States as free from the British was Morocco. The oldest US building outside of the United States is in Tangiers, Morocco. I visited that in December with my wife. It was beautiful. It's still with some of the colonial type of architecture, colors, furniture. It was an amazing trip. It was cool to see. With the seal of the United States on the streets of Morocco.

• 10:09Speaker 03

  That's pretty cool.

• 10:10Speaker 04

  Yeah.

• 10:10Speaker 03

  So that's the oldest embassy. American embassy is in Morocco.

• 10:15Speaker 04

  It's no longer an embassy, it's a museum right now.

• 10:17Speaker 03

  Oh.

• 10:17Speaker 04

  They moved it.

• 10:18Speaker 03

  Oh, that's cool. Is it a museum for like?

• 10:21Speaker 04

  Anybody can can can go and visit and.

• 10:24Speaker 03

  Oh, it's just like an art museum or like?

• 10:26Speaker 04

  It's got some, it's got some paintings and some art, but also just, just history, history museum.

• 10:31Speaker 03

  Oh, that's interesting.

• 10:31Speaker 04

  Yeah, yeah, it was cool.

• 10:33Speaker 03

  So this, this trade stuff, you know, we're seeing it today. Apple was up today because, you know, part of this deal or part of the pause apparently has to do with cell phones and the chips that are in cell phones. Nvidia today has announced that they are going to make efforts to have, create their supercomputers entirely in the United States for the first time. So this is, this is what President Trump, I think, is wanting to do. He's wanting to bring back to the United States these types of manufacturing.

• 11:06Speaker 04

  Yeah, yeah, quality manufacturing that actually is a high paying job.

• 11:10Speaker 03

  Correct.

• 11:10Speaker 04

  That needs skills, not just any type of, you know, widget thing.

• 11:14Speaker 03

  So Nvidia is, is in the process and they make supercomputers, Nvidia AI, supercomputers and their, and their announcement today to do this entirely in the United States. Looking a little deeper, it turns out that this is a chip plant that they want to move into Texas. And, and they'd be partnering with Foxconn. And the mass production, production between, there's a couple of plants in Houston and, and other parts of Texas. They expect this to ramp up and be online in about 15 months. So that seems like a fairly short amount of time or average, I guess, for a plant.

• 11:56Speaker 03

  But my question has been, can, can these, you know, can, can, can the United States economy tolerate these types of terrorists for 15 months?

• 12:07Speaker 04

  You know, like. Well, the other question I have, I, I don't know the answer to that, sure. That's a very good question, yeah. Is, was that already in the plans as part of the Biden administration that had all this? Remember the budget he passed?

• 12:20Speaker 03

  Yes.

• 12:21Speaker 04

  He gave a lot of, a lot of. What's the word I'm looking for incentives?

• 12:28Speaker 03

  Yeah, incentives.

• 12:29Speaker 04

  To a bunch of companies, including Nvidia, some South Korean companies that do semiconductors as well, right? They had already committed billions and billions of dollars.

• 12:39Speaker 03

  Yes, it was part of that, what was that, the Anti-Inflation Reduction Act?

• 12:45Speaker 04

  Yes.

• 12:46Speaker 03

  Whatever it was.

• 12:46Speaker 04

  Inflation Reduction Act.

• 12:47Speaker 03

  Yeah, that's it. And there were, it was billions of dollars to bring specifically chip manufacturing back on shore. And, you know, just like, just like countries are doing, countries have their own diplomats and people that are just in charge of going and, you know, keeping relationships with other countries. Multinational corporations have the same thing. They've got a whole department of people that, that are part of PR.

• 13:17Speaker 04

  Lobbying.

• 13:18Speaker 03

  Lobbying. And they're, and you've got to think that they're smart and they're going to be like, how can we make President Trump happy?

• 13:25Speaker 04

  It's part of the strategic planning, I can assure you that.

• 13:27Speaker 03

  Yes, you're even see law firms that are doing this, they're offering pro bono work to, to the president so that they don't get on his blacklist. It's like, oh, my gosh.

• 13:36Speaker 04

  Yeah.

• 13:36Speaker 03

  Well, you know, interesting is that it, I would argue that 15 months to bring a manufacturing plant to the United States is a long time for the American voter. Like, we'd be coming up very close to the midterm elections. And if we are in a recession, or we are in, we're experiencing high inflation because, because of the tariffs that are in place, that is, that are trying to incentivize local manufacturing. I don't think that any politician has the resilience to be able to resist that and say, I don't care everybody's mad, I don't care that all of my donors are upset, that major sectors of the, of the economy are upset, I'm still going to keep the tariff.

• 14:19Speaker 03

  I think that, I just don't think that anybody could hold that up for 15 months.

• 14:23Speaker 04

  I, I have my own theory. I mean, let's not forget, President Trump has only been in office little over 90 days. When did he take off? January 6th, he was sworn in.

• 14:32Speaker 03

  Right.

• 14:32Speaker 04

  Right? So we're just past three months by January, February, March.

• 14:38Speaker 03

  Yeah.

• 14:39Speaker 04

  Right? Not, not, not. So if you go back to his first term, the first 90 days, we're, we're as volatile as this. And then things stabilized, the stock market rebounded.

• 14:49Speaker 03

  Yeah.

• 14:50Speaker 04

  I'm predicting something like that.

• 14:52Speaker 03

  Yeah, I, I would too. I, I, I don't, I don't know how soon it will be, but I don't think that the president would be able to resist do, changing something so that.

• 15:03Speaker 04

  It's his legacy. Stock market is his legacy. He will, he's not going to mess with that legacy. I, I, I don't think.

• 15:08Speaker 03

  Completely. We had a Federal Reserve governor today, Chris Waller. He has warned today that inflation could surge this, this year near 5% and economic growth would slow to a crawl, essentially saying that the central bank may need to cut interest rates to prevent a recession.

• 15:28Speaker 04

  Yes.

• 15:28Speaker 03

  That's what.

• 15:30Speaker 04

  A month and a half ago, we talked about.

• 15:31Speaker 03

  Yes.

• 15:32Speaker 04

  Right? We talked about President Trump's pressure on the Federal Reserve to reduce rates.

• 15:36Speaker 03

  Yeah.

• 15:36Speaker 04

  This is one of the multiple levers he's got.

• 15:39Speaker 03

  Yeah. Well, he's only got a few levers really that he can do. I guess there's, I think you're right, there's multiple, but this is one that.

• 15:46Speaker 04

  The tariffs.

• 15:47Speaker 03

  Yeah.

• 15:47Speaker 04

  And, and, and this is, he's been vocal about, you know, Powell.

• 15:52Speaker 03

  Yes.

• 15:52Speaker 04

  And Powell's resistance to reduce rates.

• 15:56Speaker 03

  Yep.

• 15:56Speaker 04

  Because he want, he wants to stimulate the economy through, you know, borrowing, through banking, through small business, which is the lifeblood of this country.

• 16:04Speaker 03

  Right.

• 16:05Speaker 04

  Small businesses and their lines of credit, they employ a huge percentage of the population.

• 16:10Speaker 03

  Well, it would be, it'll be interesting to see if the Fed does in fact cut interest rates or that we, if we do, if they do see a recession or inflation, because according to at least this Federal Reserve governor, they would have no issue with lowering rates because they, they would see this as being temporary, whereas they don't. You'll, you remember what they did when we had inflation before? They've raised rates.

• 16:33Speaker 04

  That's right.

• 16:34Speaker 03

  That's how, that's the standard procedure for the Fed to tame inflation. But when there's a recession happening, a recession, and if they see that that recession is from a very specific policy, for example, like tariffs, then at least according to this governor, this Fed governor is like, huh, we'll just lower rates.

• 16:55Speaker 04

  Yep.

• 16:55Speaker 03

  That could, that would be actually be good, good news to some extent. There's, it's double edged sword with lower rates. It can incentivize overspending.

• 17:04Speaker 04

  Yes.

• 17:05Speaker 03

  And it can heat up the economy. And that was one of the reasons why we had the great recession in 2008, 2009 was because it was.

• 17:14Speaker 04

  We had, we had very, very low rates, close to zero. And, and prime was very, very low.

• 17:19Speaker 03

  Yep.

• 17:19Speaker 04

  But we also had a banking system that was very loose. We did not have a lot of regulation, if no regulation at all.

• 17:26Speaker 03

  Right.

• 17:27Speaker 04

  You know, we came out of the eighties and nineties, just not wanting banking regulation at all because it was restrictive.

• 17:33Speaker 03

  That's right.

• 17:34Speaker 04

  Especially President Reagan pushed hard for that.

• 17:37Speaker 03

  Yep. Yeah. And then that, that led to easy lending for homeowners.

• 17:42Speaker 04

  Yeah.

• 17:42Speaker 03

  And, you know, the hundred percent. Stated loans, stated income loans.

• 17:46Speaker 04

  That's right. Yeah. And, and, and all of that, I mean, we don't have today. We still have a shortage of, of, of, of housing and mortgage rates are, are, are high. But we don't have the, the things we had in 2005 through 2007 as far as banks are concerned.

• 18:04Speaker 03

  Yeah, it's a much, much different world we live in now. We've got a lot more to talk about here, Sammy. We'll be right back after this short break on ESPN Bakersfield, 1230 AM, 101.1 FM.

• 18:14Speaker 00

  Don't forget, Money Wise is more than a radio show. We're an independently owned, local wealth management firm with 60 plus years of collective experience. Our financial advisors are here to help you, Kern County. Together, let's be smart, be safe, be money wise.

• 18:40Speaker 03

  Welcome back to the Money Wise Show. We're live. I'm Sharad Waite here with Sammy Abiyawi, talking about some of today's headlines. Today started the antitrust lawsuit against Meta, the parent company of Facebook, Instagram, and WhatsApp, is facing an antitrust trial initiated by the US Federal Trade Commission. Essentially, what they're alleging is that Meta, when it acquired Instagram in 2012 and WhatsApp in 2014, that these were strategic moves to eliminate competition. And they have some

• 19:19Speaker 03

  proof that's been made public, including an email, a 2008 email where Zuckerberg stated, quote, "It is better to buy than to compete." Can you believe that, Sammy?

• 19:31Speaker 04

  Yeah.

• 19:31Speaker 03

  Yeah.

• 19:33Speaker 04

  Yeah.

• 19:33Speaker 03

  Doing business, right?

• 19:34Speaker 04

  That's right. I mean, come on, man. I mean, I live, I live in America. I came here. So I'm, to be in a capitalistic country, yes, if I have the, to me, if I have the means, why not?

• 19:48Speaker 03

  Yeah.

• 19:49Speaker 04

  You know, I equate this to, let's say Coca-Cola and Pepsi, for instance.

• 19:53Speaker 03

  Yeah.

• 19:54Speaker 04

  They don't spend as much money on, on development anymore. What they do, what they wait for is this small mom and pop, they come up with this like drink, like Poppy.

• 20:04Speaker 03

  Yep.

• 20:05Speaker 04

  And eventually they go and just buy it.

• 20:07Speaker 03

  Yep.

• 20:07Speaker 04

  For a billion dollar, a little more than that.

• 20:09Speaker 03

  Yeah.

• 20:10Speaker 04

  Now, you, you told me earlier, how much did Meta pay for WhatsApp?

• 20:15Speaker 03

  Yeah. So Meta paid 100, paid 19 billion for WhatsApp in 2014.

• 20:21Speaker 04

  Okay.

• 20:22Speaker 03

  It paid 1 billion for Instagram in 2012. So WhatsApp is now estimated to be worth...

• 20:30Speaker 03

  Forty to a hundred billion. So they've more than tripled.

• 20:34Speaker 04

  Yeah.

• 20:34Speaker 03

  Their val- the value of WhatsApp. Instagram is estimated to be valued between a hundred and a hundred fifty billion. So dang, I mean.

• 20:43Speaker 04

  That's a nice return.

• 20:44Speaker 03

  So dice.

• 20:45Speaker 04

  Yeah.

• 20:46Speaker 03

  I mean, anybody would take that.

• 20:48Speaker 04

  So, explain to me this, Sherrod. I mean, the antitrust, what's, what's the purpose? What, what is it? Is it's?

• 20:53Speaker 03

  It's to, it's to allow, um, healthy competition. You don't want to, it's not good for an economy to have one superpower that is dominating any, any one field. It's good to a certain point, but then it can be counterproductive.

• 21:14Speaker 04

  Now, if the company in question that's been the target of the antitrust is using tactics to limit competition.

• 21:21Speaker 03

  Yeah, that's, that's not acceptable if that comp- if that company is already considered to be essentially the bully and the, the big, you know, the only one, or one of the only ones that just dominates an industry. Here's a couple of examples that I'll give that people may, may or may not know or remember. Standard Oil. This was when the United States brought an antitrust lawsuit against Standard Oil in nineteen eleven. And it turned, this was the company that John D Rockefeller owned. And the outcome from that was the Supreme Court ordering them to break up into thirty-four separate companies, including ExxonMobil and Chevron and so on.

• 22:00Speaker 04

  ConocoPhillips and others. There's like, yeah.

• 22:03Speaker 03

  And, and, and you can see there, okay, that this seemed to be a good thing because now you have Exxon and Chevron competing and.

• 22:10Speaker 04

  So what happens to the shareholders that are actually owning stock in these companies during that, if the split takes place?

• 22:16Speaker 03

  They get the shares of both companies.

• 22:18Speaker 04

  Okay.

• 22:18Speaker 03

  Yeah, so they, they do have to revalue some of these, you know, the, the, the shares, but the share price and so on. But they get, they'll get both. Generally, that's what happens. There's a split and things like that.

• 22:30Speaker 04

  So you, as a shareholder, your, your, your, um, risk, ownership risk. Changes because now you're dealing with one management team to multiple management teams and one of them could be better than the other.

• 22:42Speaker 03

  Yes, it could be a very good thing for shareholder, but it also could be a terrible thing for the shareholder because sometimes these companies break up and that was the magic of the company that the fact that there's one big mothership. AT&T is the other big example, the Bell system that broke up in 1982. AT&T had a huge telephone monopoly and it was broken up into seven regional baby bells, which include Verizon, SBC, which, you know, these are, you know, ones that we know. It opened up competition in the telecommunications field. Microsoft went through this, this was a famous trial in 1998. The government essentially claiming that Microsoft was bundling Internet Explorer with Windows just to squash Netscape, which yet Netscape didn't last.

• 23:26Speaker 03

  You remember Netscape? See, you don't even remember it, but they were like up and coming.

• 23:31Speaker 04

  Was it a sister company of MySpace?

• 23:36Speaker 03

  Definitely out there. I remember using Netscape when I was in college.

• 23:41Speaker 04

  I forgot about that, seriously. I completely forgot about Netscape.

• 23:45Speaker 03

  It was, but Internet Explorer was it, you know, or Windows, that was all there was. There is, we mentioned Meta, that's going on right now and that people see how that plays out. Zuckerberg is expected to testify. The United States has an ongoing, still in trial against Amazon and Google. They've been lumped in together and this is claiming that Google has used payments to dominate search and advertising. And then Amazon allegedly crushing third-party sellers and in favor of its own products because Amazon has its own product line. So you can see like when you do a search, it's like the Amazon stuff will come up.

• 24:23Speaker 04

  The preferred choice or Amazon choice or this or that.

• 24:26Speaker 03

  Yeah. You mentioned Coca-Cola. They were also involved in 1999 in an antitrust lawsuit. The FTC ultimately ended up blocking the deal, didn't allow Coca-Cola to merge with Dr. Pepper. They said this is not good for consumers and they ended up blocking that deal. That's, you know, that happens. There's another famous one that's just happened. I can't remember what, I think it was one of the airlines. Might have been Spirit and somebody else.

• 24:59Speaker 04

  Yeah, yeah, yeah, you're right, you're right. There's two airlines that actually were the, the, the purchase or the merger was not, was not allowed, was not approved.

• 25:07Speaker 03

  Right. I think there was a similar deal between Honda and...

• 25:14Speaker 04

  Nissan.

• 25:15Speaker 03

  Yes. Honda, Nissan. You know, two giant, not giant, but two Japanese auto manufacturers announced this deal and I think they both just backed out, probably after the attorney said, hey, you're, you're dealing with antitrust here. It's too risky.

• 25:29Speaker 04

  Yeah, don't mess with that.

• 25:31Speaker 03

  Right. It just, you can see where that may not be great for the consumer. It's kind of nice to have another option there that, you know, another car manufacturer that I'm sure a lot of Nissan lovers were happy or, I don't know, unhappy about it, I don't know. There you go. That's what's going on.

• 25:48Speaker 04

  Yeah, it's just fascinating, the history of the anti, you know, trust and, and when it started and why it started and the things that went through, some of the companies that went through it. Got dissolved like, like, like, you said Standard Oil, right?

• 26:02Speaker 03

  Standard Oil, that's a big one. That one in 18, those are the, the, the college textbook examples of antitrust is the Standard Oil, that Rockefeller's company, and then AT&T.

• 26:15Speaker 04

  Are they gonna have antitrust talks about these big banks we have in the United States? Too big to fail?

• 26:21Speaker 03

  That's been always a concern, because like, we're just down to three, four major banks. You have Chase, Bank of America, Citi.

• 26:33Speaker 04

  Wells Fargo.

• 26:34Speaker 03

  Wells Fargo. Wells Fargo's kind of been hammered lately.

• 26:38Speaker 04

  Yeah, but they're still up there as far as, you know, market share and, and, and stuff. It's, it's, yeah. Chase, Bank of America, Citi, Wells Fargo.

• 26:51Speaker 03

  That's like it, you know, like, and you would, like, nobody wants just one bank. Imagine the world where you just got one major bank?

• 26:58Speaker 04

  No, no, imagine, imagine some of these smaller markets we have throughout the United States, they used to have these small regional banks, like one, one branch.

• 27:06Speaker 03

  Yeah.

• 27:06Speaker 04

  Ten million dollars of assets.

• 27:07Speaker 03

  Right.

• 27:08Speaker 04

  Those things are, like, they, they... It's hard first, it's hard to start a bank now.

• 27:14Speaker 03

  Yeah.

• 27:15Speaker 04

  You know.

• 27:15Speaker 03

  Yeah, it takes, I think, who was that we talked to? It's just like a minimum you need

• 27:19Speaker 04

  30 million.

• 27:19Speaker 03

  150 million or you need, yeah, you need like at least 30 million in deposits, but then to get, to be able to lend.

• 27:28Speaker 04

  Yeah.

• 27:28Speaker 03

  And to be able to have all that money, you need like another 100 million.

• 27:31Speaker 04

  It's, it's, it's, yeah, the, the, the test to go through is to even start.

• 27:36Speaker 03

  Right, right.

• 27:37Speaker 04

  It requires about half a million dollars of just research and putting together a team and what have you before you even do anything.

• 27:42Speaker 03

  Right.

• 27:43Speaker 04

  You know, and, and we went down from 8,000, 9,000 banks in 2008, 2009 to maybe 4,000 banks right now.

• 27:53Speaker 03

  Yeah, and there's probably less even now because it continues to consolidate.

• 27:56Speaker 04

  Yeah, it's considered, the cost of compliance is just too high for a small bank to, to manage through.

• 28:02Speaker 03

  When we come back, Sammy, I want to talk about if a recession does happen, what are those sectors that tend to do really poorly? There was some, some news today about certain companies that are, are having their earnings reported and they're saying in their earnings report that they're concerned about a recession. So I thought, oh, this would be a good opportunity to sort of talk about what sectors tend to do well or hold up during recessions and what do really poorly during recessions. We're going to cover that when we come back. Thanks for tuning in. We'll be right back after this.

• 28:35Speaker 00

  Need to get your financial fix on the go? If so, subscribe to the Money Wise Podcast and catch up on all past shows.

• 28:47Speaker 03

  Thanks for tuning in. We're the Money Wise Show. I'm Sharad here with Sammy. We're your hosts today. 661-396-1000, that's the number. We've got a message here, Sammy.

• 28:57Speaker 04

  Yeah, before that, I just got a text from my buddy, Baines Bank, who works at Wells Fargo, and he says, "My mother taught me that the lottery is a tax on those who are bad at math." Shout out to you, Baines Bank.

• 29:09Speaker 03

  Yeah.

• 29:11Speaker 04

  I'll read the question. Great show. And how long until the next Fed interest rate decision? May 5th or 6th? I just wondered if the stock market is impacted a few days leading into their next meeting.

• 29:23Speaker 03

  Okay, so the, you know, the first question, the first part that we'll answer is that the markets, the Fed has done a much better job lately, announced, not announcing, but giving a heads up as to how the, the board is feeling. They call it the dot plot and it's public information. So you have one of the 12 governors, I don't remember how many there are, roughly 12 governors, and the president, who's Jerome Powell, and they essentially say on this, on this chart, what are the, you know, where, where do you, where do you see interest rates being in the near future? Basically, I'm really dumbing it down. But so, so that way, it's not so much of a surprise.

• 30:04Speaker 03

  And what we have found over the last five to 10 years is the Fed being more transparent, it has, it has led to a lot less volatility leading up to the Fed announcement in the stock market. Whereas before, like with Alan Greenspan.

• 30:19Speaker 04

  Oh, yeah, I remember those days.

• 30:20Speaker 03

  Remember Greenspeak, where people were like trying to read the tea leaves and like, which hand is he holding his briefcase? How did he tie his tie?

• 30:26Speaker 04

  Did he sneeze before he walked in?

• 30:28Speaker 03

  Right. And it was because he was just, nobody knew, you know, what was going to happen? What was the Fed thinking? What was he going to do? And so there's been a lot less of that volatility. So the next Federal Reserve interest rate decision is scheduled for May 7th. That's Wednesday. It's after their two-day Federal Open Market Committee meeting that begins on May 6th. So they meet for a couple of days and after that, they, they have the announcement and typically Jerome Powell, the president, will get, have a, have a press really, or a press conference. And he'll, he'll generally talk about why they made the decision that they made.

• 31:03Speaker 04

  Yeah. I agree with you as far as the volatility before the announcement. It's not as bad in the last five, 10 years as it was before.

• 31:12Speaker 03

  Yeah. Thank goodness. And I'm glad, I'm glad there's a lot more transparency. You know, with that, the Fed is reading all kinds of statistics. They're getting every kind of economic statistic that you can think about and they're analyzing this and they have a team of analysts and they're talking about it, they're discussing it as a committee and then they're coming up with their decision and they're voting on it. It's not always unanimous, sometimes, you know, the vote is split. But there was an interest, there's another interesting survey that's put out by the New York Fed. It's called the Survey of Consumer Expectations. And that is, it's just what it sounds like. How are consumers expecting the economy to turn out?

• 31:56Speaker 03

  And this just recently came out, this, I believe just today. Consumers were, the Federal Reserve released the information for how consumers are viewing a few different economic statistics, including unemployment. The fear for unemployment has jumped to its highest level since the pandemic. There's now, and consumers are putting a 44% probability that the nation's jobless rate is going to be higher in a year. That's the highest level we've seen since April of 2020, which is crazy. Because in April of 2020, like, people were thinking, you know, the world, half the world could die from some unknown virus that we didn't know what was going on.

• 32:41Speaker 04

  Yeah, yeah. What I hear you say is that uncertainty breeds indecisiveness as far as consumer purchasing.

• 32:50Speaker 03

  Yes.

• 32:50Speaker 04

  Which is number one driver of the US economy.

• 32:52Speaker 03

  That's it, yeah. It's all driven by consumers.

• 32:56Speaker 04

  So whenever you tell me about certain things, the one thing that scares me the most is people not spending.

• 33:03Speaker 03

  Yes.

• 33:04Speaker 04

  That will put the economy, you know, to a stop.

• 33:07Speaker 03

  That's it. It can turn it backwards, which is the definition of a recession. The survey, the March survey also showed that people are increasingly insecure about their own job. They're those that are... That perceive the probability of losing their job in the next year rose to 15.7%. That's a 12-month high.

• 33:29Speaker 04

  Did they, did they say any, anything about the reasons why people are feeling that? Is it AI-related? Is it just decision-makers that are, you know, not as, I don't know?

• 33:40Speaker 03

  Yeah, I, you know, a lot of it, I, I haven't read the details of this, but certainly President Trump's aggressive tariff policy and the escalating trade war has to, has to be a part of it. And it's the uncertainty of what these, of what these tariffs could mean. And it's, it can become a self-fulfilling prophecy when you've got a bunch of consumers that are out there thinking either they're going to lose their job or that the economy is going to, going to tank. Because like you said, people will put on hold

• 34:13Speaker 04

  Yeah.

• 34:13Speaker 03

  what they might spend.

• 34:15Speaker 04

  That's right.

• 34:15Speaker 03

  And how they might spend it, which then that's, that's what creates a recession. So this kind of led me to, I thought, you know, it'd be good kind of recap. An argument towards diversification is not being overweighted in any one sector. Not just one, not even overweighted in one single company or one single stock, but not even, you want to avoid being overweighted in a single sector as well. And there's many different sectors, over a dozen different sectors. And including, you can even diversify across countries. So you have different sectors that are in different countries.

• 34:51Speaker 04

  Geographical.

• 34:52Speaker 03

  Yes.

• 34:52Speaker 04

  So you can minimize your, your risk geographically, yes.

• 34:56Speaker 03

  Yeah, so to give you an idea, so today there was earnings by Louis Vuitton, LVMH, I think, is that the company? This is, you know, massive luxury item company. And they, they mentioned the fears of recession starting to impact them. Obviously, luxury goods and services struggle when

• 35:18Speaker 04

  During a recession.

• 35:19Speaker 03

  During a recession. This is because any sector that relies on discretionary income, when there's low confidence, then they're going to be, there's going to be trouble. So you think luxury cars, fine jewelry, high-end travel. Luxury brands, like I mentioned, like Louis Vuitton, Ferrari, Tiffany and Company. These are companies that generally really struggle during recessions. Good examples of this is during the 2008 financial crisis. We saw luxury brands fall sharply, even though the ultra-rich still had plenty of money. They just, they're

• 35:50Speaker 04

  Well, the ultra-rich don't buy

• 35:53Speaker 03

  Yeah.

• 35:53Speaker 04

  Louis Vuitton.

• 35:56Speaker 04

  I don't think.

• 35:56Speaker 03

  What do they buy?

• 35:58Speaker 04

  I don't know.

• 35:58Speaker 03

  Birkin? Yeah.

• 36:00Speaker 04

  If they do, frankly, I think that that's a marketing scheme to get the middle class. And even people that are not making a lot of money, so

• 36:08Speaker 03

  Yeah.

• 36:09Speaker 04

  Hey, that's Gucci, bro.

• 36:10Speaker 03

  That's right. That's right. So it's the middle class that is like, well, they don't have the money.

• 36:14Speaker 04

  Look, and then there is a research that was done last year by an Italian, I think, media outlet about these bags that cost $85 to make. They're being sold for $3,000. Now.

• 36:31Speaker 03

  You know where you can buy them for $85.

• 36:32Speaker 04

  Yeah, Morocco. No, Turkey. Turkey is the, like, if you want to go and get some really quality stuff.

• 36:39Speaker 03

  Knock off.

• 36:39Speaker 04

  There's some like side streets in Istanbul you can go to and

• 36:43Speaker 03

  Oh, yeah.

• 36:43Speaker 04

  And find these things, you know, and it's, looks the same.

• 36:47Speaker 03

  Yeah.

• 36:47Speaker 04

  Now, I don't, I don't believe in luxury bags or this or that. I really don't care for them.

• 36:53Speaker 03

  Wait, I saw this when I was in Spain a couple of years ago that they have, I think they might do this in New York too, New York City. Certain parts and like in the alleyways where they've got the, a blanket laid out with all of the bags or things on, but the blankets have like these cords on them. So they can just grab, if they see the police, they can just grab.

• 37:10Speaker 04

  Paris has it, Barcelona has it, Madrid has it. It's a trick.

• 37:14Speaker 03

  Yeah.

• 37:14Speaker 04

  You're just backing and run.

• 37:16Speaker 03

  It scoops it up and then it turns into like a pouch and then they start running. I've never seen them do it.

• 37:20Speaker 04

  Oh, yeah. Yeah. Gucci glasses and

• 37:23Speaker 03

  Right.

• 37:23Speaker 04

  All sort of stuff. Yeah.

• 37:24Speaker 03

  There's always bags. There's always

• 37:26Speaker 04

  Bags.

• 37:27Speaker 03

  Yeah, like purses and stuff.

• 37:28Speaker 04

  Purses and, and yeah, it's, yeah. But going back to your point, as far as recession-proof, you know, businesses, there are some.

• 37:37Speaker 03

  Yes. Yeah.

• 37:38Speaker 04

  In my opinion, I agree with you and luxury stuff, technology tend to basically slow down in a recession. But other, other industries thrive.

• 37:47Speaker 03

  Yeah. Like defensive sectors that are considered defensive sectors that tend to hold up better during recessions. Consumer staples.

• 37:54Speaker 04

  Yes.

• 37:55Speaker 03

  So groceries, household items like hygiene products, like people still brush their teeth. Right? And so you have companies like Procter and Gamble or Coca-Cola or Walmart that generally, again, it doesn't matter if it's a recession or not, people are going to buy toilet paper.

• 38:09Speaker 04

  That's right.

• 38:10Speaker 03

  Buy toothpaste.

• 38:11Speaker 04

  Oh, the craziness about toilet paper during the COVID.

• 38:13Speaker 03

  Yeah.

• 38:14Speaker 04

  That that is, it was crazy.

• 38:16Speaker 03

  That's right.

• 38:17Speaker 04

  Discount retailers.

• 38:18Speaker 03

  Yeah.

• 38:19Speaker 04

  Tend to do really well. Dollar General and others did really well during COVID.

• 38:23Speaker 03

  Yeah. Costco.

• 38:25Speaker 04

  Costco, you know, buying in bulk.

• 38:27Speaker 03

  And then utilities tend to do well. It kind of logic follows that if people still need electricity and gas and water. And, you know, there's a stable demand regardless of the economic cycle. Healthcare. You know, like people still get sick.

• 38:42Speaker 04

  Yeah. So just talking about just healthcare and jobs and all that in this environment, I think in the month of March, the largest, the largest number or sector that added jobs was the healthcare. Out of the $300,000 jobs we've added, I think we've added 54,000 just in the healthcare sector.

• 38:59Speaker 03

  That's something, you know, that's a, that's a, no sector is, is immune to going through the normal business cycle of expansion and retraction. That's sort of, you know, you're not going to find any sector or any single company that's like, oh, this is a sure bet. It's definitely going to go up, which is again, an argument for why we would always recommend you remain diversified. But you do have some sectors where you think about the long term, healthcare being one with an aging population. As we age, you get more sick. And unless somehow technology or biotechnology really, really does super well, that some, we get some pills that just, magic pills that extend our life out. Then, you know, you got to think that there is a future.

• 39:44Speaker 04

  Yeah.

• 39:45Speaker 03

  Certainly in a career, there's future in medical.

• 39:48Speaker 04

  Yeah. Anything I read, anything I, I, I mean, my wife runs a staffing agency, then one of the sectors that are in high demand with actually very little. Population that's that's available to work.

• 40:01Speaker 03

  Right.

• 40:01Speaker 04

  Is in the health sector.

• 40:02Speaker 03

  Yeah.

• 40:02Speaker 04

  We have, we are in need of thousands and thousands of nurses that we don't have. That's why we import them from countries like the Philippines, India, China and others.

• 40:10Speaker 03

  Yep. Yeah. Since stocks also tend to do well or hold up during recessions of alcohol, tobacco, gambling.

• 40:16Speaker 04

  Yeah, I was gonna say, that's a research that was done when I was doing my MBA at Cal State about liquor stores and how they fare during low or down economy and an expanding economy. People are happy. Guess what they do?

• 40:27Speaker 03

  Hmm hmm.

• 40:28Speaker 04

  They go and drink.

• 40:28Speaker 03

  Drink.

• 40:29Speaker 04

  They're sad.

• 40:30Speaker 03

  They go and drink.

• 40:33Speaker 03

  Or gamble.

• 40:34Speaker 04

  That's right.

• 40:35Speaker 03

  That's right. Oh, yeah. Anyways, super interesting. Thank you for, uh, thank you for participating. We've got one more break to take, so please stick around as we take this quick break.

• 40:46Speaker 00

  If you're a business owner who provides a retirement plan for your employees, contact Money Wise Wealth Management to see if you're maximizing your options and minimizing your liabilities. Money Wise 401k plans are customized to you and your company's needs. 661-847-1000.

• 41:08Speaker 03

  Welcome back to the show. We're Money Wise. I'm Sharad. That's Sammy. We're reading your messages.

• 41:13Speaker 04

  Yeah. Rich people don't need to buy it because they get it for free. My brother sends me all sorts of them and hasn't ever had to send a penny, spend, spend a penny on them, even though he has the money to buy. Connect me with him, please. Free stuff. I love free stuff.

• 41:29Speaker 03

  Seriously, uh, this is, I've heard this, like, uh, celebrities talk about this, like, they never buy their clothes or their things and, and.

• 41:37Speaker 04

  It's a free advertisement for, I guess. I mean, they advertise the brands.

• 41:41Speaker 03

  And they're the ones that have all the money to buy it. They're the ones buying them.

• 41:44Speaker 04

  Yeah. We have another message. Uh, auto repair is recession proof, lol. They even raise the prices, just like grocery stores. That's right.

• 41:53Speaker 03

  Yeah, that's, that is true. Like service, yeah, you, you can only.

• 41:58Speaker 04

  Well, they know you're gonna keep that older car because you're not gonna buy a new one. It's a recession.

• 42:03Speaker 03

  Right. And not only that, but like you have no other choice if you're like your brakes. Or whatever, you know?

• 42:10Speaker 04

  Gotta get new tires, gotta get new brakes.

• 42:11Speaker 03

  I haven't seen studies to back it up, but I'm guessing that during recessions, people delay their oil changes and just like the, the, the maintenance that needs to happen on it, they put it off as long as possible.

• 42:21Speaker 04

  Or you start YouTube in that stuff and just do it yourself.

• 42:24Speaker 03

  Yeah, yeah.

• 42:25Speaker 04

  Yeah.

• 42:26Speaker 03

  You know, there was some news today about Palantir, which is AI tech company. I think they're based in Colorado. They made a deal today with NATO. They've got this Maven smart system that they've sold or come into contract with NATO. It's all hush, hush, apparently don't know a lot about it, but essentially it's, it's, uh, it's an AI system that analyzes data for battle space awareness and planning. Is the robots, these are the robots, Sammy, the brains of the robots.

• 42:58Speaker 04

  Space Force, baby.

• 42:59Speaker 03

  Space Force. Uh, it, it led me to, uh, reminded me of another article by Fortune magazine that I read over the weekend. That's talking about this problem with North Korean IT workers that are spamming tech firms with these fake resumes. And it's become a multi-billion dollar industry where it, they're essentially scammers, but it, they're, they're trained by the North Korean government. To try to apply for these tech jobs with their fake resumes. They make them look amazing and they've trained them how to pass interviews and everything. But there was one founder that came up with a foolproof way to figure out if they're, you know, if they are.

• 43:39Speaker 04

  Legit?

• 43:40Speaker 03

  Yeah, legit or not, and whether or not they are in North Korea or not. And would you guess what, what it is that they ask that they found? That they want, that they, they, they freak out and then they disappear?

• 43:51Speaker 04

  No.

• 43:51Speaker 03

  They ask him about, they ask him about Kim Jong-un.

• 43:54Speaker 04

  Oh.

• 43:55Speaker 03

  And then, and if they say they, they, cause they, they.

• 43:58Speaker 04

  They cannot talk.

• 43:58Speaker 03

  They cannot talk bad about their leader. And so they end up.

• 44:02Speaker 04

  How do you feel about?

• 44:03Speaker 03

  Yeah, uh huh. And then they go, uh, uh, make a fart noise and then they, they never hear from him again.

• 44:10Speaker 04

  That's brilliant.

• 44:11Speaker 03

  Isn't that crazy? Yeah.

• 44:12Speaker 04

  That's brilliant.

• 44:14Speaker 03

  It was also like just scary is that they've got these like army armies of people that are just cash and checks from tech companies. And not only have they taken the money from the tech companies, but they're stealing the whatever.

• 44:28Speaker 04

  The data, whatever they have access to.

• 44:29Speaker 03

  Intellectual property they have. Yeah. It's frightening.

• 44:32Speaker 04

  It is frightening. The AI world, I mean, just the voices.

• 44:36Speaker 03

  Yeah.

• 44:36Speaker 04

  Voices, the, the, how they can integrate your voice with, I mean, it's amazing.

• 44:41Speaker 03

  Yeah.

• 44:42Speaker 04

  Amazing and scary at the same time.

• 44:43Speaker 03

  Super scary, super scary. I don't know what you do about it, but, um, you know, just be aware.

• 44:50Speaker 04

  Yeah, be aware.

• 44:50Speaker 03

  You know, be careful. We talked about this here at Bunnywise too, the precautions that we have to take, the safety measures that we have to take to protect people's identities and it's just not, it's, it's not getting easier.

• 45:01Speaker 04

  And, and, and that's another industry that does really well in a recession, fraud.

• 45:06Speaker 03

  Oh, yeah.

• 45:06Speaker 04

  Because people are desperate.

• 45:07Speaker 03

  Yeah.

• 45:08Speaker 04

  People are desperate and they just start just doing things that, you know, that, that are crazy out there, illegal.

• 45:14Speaker 03

  Yeah.

• 45:14Speaker 04

  So they can just feel like, hey, I need to survive.

• 45:17Speaker 03

  Yeah.

• 45:18Speaker 04

  But.

• 45:18Speaker 03

  It used to be that you had to join, you know, the mafia, but now people can just like get a, a laptop and a burner phone and they can, you know, steal.

• 45:29Speaker 04

  Do a remote from Thailand somewhere.

• 45:31Speaker 03

  Right.

• 45:31Speaker 04

  And just still, yeah, it's crazy.

• 45:34Speaker 03

  Take advantage of people.

• 45:35Speaker 04

  Yep.

• 45:36Speaker 03

  There was, you know, there's, there's, I won't have time to get to this, but you know, there's maybe tomorrow we can talk about the Stock Act, which is the law that passed in 2012 to try to protect basically investors from lawmakers being able to make trades off of.

• 45:52Speaker 04

  Yeah, it's been a talk lately.

• 45:54Speaker 03

  Yeah.

• 45:54Speaker 04

  With all the, the stuff that happened.

• 45:56Speaker 03

  The Trump stuff where he was, you know, allegedly said was, it was implying that people should buy just before he announced the tariff thing. So we got time tomorrow to talk about the Stock Act.

• 46:09Speaker 04

  That's a good history of it.

• 46:10Speaker 03

  You know, what are, what are some of the things that lawmakers are prohibited to do? And what are some things that they're still able to do? Spoiler alert, I think it's insane that we allow our lawmakers to continue to do some of these trades that you and I couldn't do, not in our regulated world. Well, thanks so much, Sammy. I want to thank all of our listeners. If you missed any of these, go online and check out where you can find these streaming. And remember these three things: be smart, be safe, and always be money wise.

• 46:38Speaker 02

  Securities offered through SCF Securities, Inc., member FINRA/SIPC. Investment advisory services offered through SCF Investment Advisors, Inc. SCF Securities, Inc. and Money Wise Wealth Management are independently owned and operated.