Welcome to another edition of the Chicks on the Right podcast where we talk to
our friend and sponsor of the show, Zach Abraham, chief investment officer at
Bulwark Capital Management. And today we have a topic that we were not expecting,
but we're reading now that the Texas Stock Exchange is going to be opening
up in Dallas by twenty twenty six, that it has some major finance companies
like Blackrock and Citadel behind it, and that this is happening, and we
wanted to get your thoughts because we don't understand any of them. I thought
it was fake. That I thought it was fake, and then I had
I was like, no, this is real, this is really going to
happen. Yeah, and my first comment would be God blessed Texas. Yeah.
So, you know, it's funny watching this roll out because, in
my opinion, this is exactly what the founders had in mind when they set
up the State of our Union, meaning the fact do you have fifty individuals.
I know that we started with less than that, but the fact you
have fifty individual states, They're meant to be counterbalances for each other, right,
hold each other accountable. Right, So if one state starts doing something
crazy, people leave and go to another state, and we've kind of seen
that happening over the last several years, right California. Yeah, yeah,
So, and I think that this Trump trial thing, obviously, this has
been going on behind the scenes for a while, you know, just announce
that you're going to launch a new exchange like that, you know, based
off of one news you know, one news report or the the you know,
Trump being convicted. But it is interesting to me when they announced this
right right after the Trump conviction, And in my opinion, I don't think
there's any other way to and especially considering that Ken Griffin, the head of
Citadel, is backing this. And in no way am I saying is he
a good actor. I don't think he's very good human being. As a
matter of fact, I've known people that have worked for him that I think
he's a complete monster. So and not to say that he hasn't done some
nice things for employees, but just he's not a very nice guy. Yeah,
But he I think is much more on our side. Is what he
views the government's purview to be, the role he thinks government should play.
And I happen to be sympathetic to a lot of his views. But bottom
line is one of the reasons they want to do this is why so many
fund managers have moved out of New York City, Right. I think one
of the ramifications that they clearly didn't think about prior to this what, in
my opinion, is a complete sham trial against Trump. And I really wish
that was something that we could have bipartisan support recognizing, because you know,
I know a lot of people who I think are intellectually honest and have a
lot of intellectually intellectual intake integrity, that do not like Trump at all,
that hate him, that have said this is a complete sham trial. Yeah,
but one of the one of the things those guys are saying is,
hey, if you're gonna do that, right, we're not going to subject
ourselves to the state of New York whatsoever. So if we don't have offices
in New York and if our trades aren't being routed through New York stock exchanges,
you know, you can kiss our hind parts, man, because there's
really nothing you can do about it. Right, And I'm not really one
hundred percent sure on what the jurisdiction rules are, but my belief is is
that if you are a hedge fund or if you are a fund or a
financial institution routing trades through the New York Stock Exchange, I would think that
that would leave you somewhat subject to New York state rules, right, New
York State government, new York State legal system. So just like these guys
moving their businesses and their places of you know, where they live and their
residences out of the state of New York, they're going to move their stock
trades out of the state of New York too, just like businesses are fleeing
California. Right, And if you think about it with New York, Uh,
that is potentially a really big blow to a lot of sources of revenue.
Oh yeah, But but I'm I'm encouraged by it because it's finally the
state apparatus is finally kicking in and doing what it should do, which is,
if you want to go nuts, and you want to and you want
to go off the rails and in my opinion, make a complete mockery of
our constitution, great, we're going to uphold it, right, and we're
going to allow We're going to create a turnstyle over here that's going to let
all these other people that don't want to be subject to your tyrannical enforcement of
laws and non constitutional enforcement of laws, and we'll profit off of it.
So do you think it'll look like Because they're going to do it in Dallas,
right, So do you think it'll look like We'll be modeled off of
the New York Stock Exchange, will look like it, Everything will kind of
look the What do you think, Well, that's what's really interesting about it,
because like everybody looks the same, for everybody will be wearing cowboy hats.
Yeah, or what I would what I would think is that there will
be far less people working there. If you go to the exchange today,
it is so much different than it was. I've been on the floor of
the exchange. It's just a bunch of series of computers and pretty much the
guys standing in there just it's almost they do it pieces of paper like they
did in trading places. Yeah, yeah, yeah, machines back on.
Yeah, we got we got to get the crop report from mister Beaks.
Right, I've seen it a few times, right, But yeah, no,
I I think it'll I think it'll look similar, But I also think
due to the people that are involved, I think it's probably right. There's
a lot of there's a lot of tradition, if you will, or a
lot of things built into the New York Stock Exchange that probably don't help on
you know, execution price and speed, you know what I mean, there's
every bureaucracy that's been around that long is going to have vestiges that aren't really
useful anymore. Well, so my feeling is is that it's probably going to
be the fastest, it's probably going to be the best execution price if these
guys roll this out, and looking at who's backing it, I have a
really hard time believing that it's not going to be a step up. I
love that. Yeah, how does it impact like just regular schmos like us?
You know what, I really don't think that it does other than the
fact that you'll be able to route your trades to a to a you know,
to a to a locale like Dallas where you know, I think the
three of us on this pot, I would much rather have the city of
Dallas and what what county is the city of Dallas in? Uh? I
should know this and I don't because I'm I'm anyway, I know, I
don't. I don't know off the jappand but you know, I would I
know that if that becomes viable, and depending on how it's structured, assuming
that I can route my trades through there instead of New York Soccer change,
I'll do that every single time. Why I don't want to contribute to to
that, you know, I want to use the I want to use the
cudgel of free markets to knock some sense into these places because you know,
like you think about CAW, I love New York. I love New York.
I think California is one of the most spectacular. Well I haven't Okay,
to be fair, I haven't been the post COVID, right, I've
been so yeah, a little bit. But I but but the city,
the idea of what New York is, I love it. I've always really
enjoyed that city. And I think California is one of the most spectacular places
on the face of the earth. And I will yeah, oh it's it's
it's ridiculous, right, I mean, it's one of the most It's just
it's insane. And you know, we go down to we haven't been down
there before, but we used to go down to San Diego every year for
spring break. And I remember looking around going, man, these people know
how to mess up a beautiful place, right, and so any any any
ancillary pressure I can put on to save those places that I think are are
quintessential America Americana, if you will, and kind of jewels of the crown,
if you will, that have been just completely tarnished, right, God
bless free markets. Man, They're doing what they need to do. Corporations
are fleeing the state of California. Stock exchanges are getting established outside in New
York, you know, hail to the founders, A ment to that.
I love that of it, love it. So we should be looking at
this positively and watching with baited breath about all of the progress with it.
And I know this is probably one of the things that people are going to
ask you about in your seminars, because you do seminars, and I know
you've got one coming up soon. Can you tell people how to sign up?
That was such a good, such a good transition there, bros.
Yeah, no, thank you so much for that. Yeah, we've got
one coming up, I believe the twenty seventh this month, which is a
Thursday, Thursday, Yeah, Thursday, June twenty seventh at three thirty those
of you in Texas, right, yeah, we will discuss this, but
yeah, just it's our normal virtual road show where we discuss our risk management
processes and that we use with different clients. And and we're really focusing on
the risk of inflation because kind of pressient, right, How how do we
address that? What do we do? How do we you know, how
do we account for that? And so we're going to walk you through how
we do and how we account for it with our clients. And at the
very least it should be educational and you can sign up at Yes, there
we go, Gowork Capitalmanagement dot com, Know your Risk Radio dot com.
You log onto those dialogue box pop pops up. It costs nothing, it's
free, and we'll send you a link to the video day it comes out,
or the or the or the seminar of the day it comes out.
And h yeah, the more more that join us, the marrier, love
it. Thank you, Zach, All right, thank you ladies, thanks
for having me. Investment advisory services offered through Trek Financial LLC and SEC Registered
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