Speaker 1: For one preset for instant access to the information that
Speaker 1: affects you. Always on fifty five KRC the talk station.
Speaker 1: It's Stato six here petbove Gar CD talk station. It
Speaker 1: being Monday, it's that time of week what we do
Speaker 1: the thing we call Monday Monday with all what financials.
Speaker 1: Brian James financial planner he is, and he's bringing us
Speaker 1: lately some bad news. Jeez, Brian, can you can you
Speaker 1: put a smile on my face one of these weeks?
Speaker 1: Welcome back, my friend. It's always good to have you
Speaker 1: on the show.
Speaker 2: Thanks for let me join you again. I gotta ask,
Speaker 2: do I do I give you like a negative kind
Speaker 2: of connotation?
Speaker 3: Do I do it do every time we talk it
Speaker 3: seems like it's bad anymore? Do you just think of
Speaker 3: me in terms of sadness?
Speaker 2: Of course not.
Speaker 1: You know, it's kind of like Dave how to do
Speaker 1: Tech Friday with Dave Hatter at six Thirday every Friday,
Speaker 1: and he's always warning us about just the absolute land
Speaker 1: minds that are lurking everywhere when you're online. You know,
Speaker 1: the scammers, the hackers, folks breaking into our infrastructure, sending
Speaker 1: you spam text that will end up taking over your
Speaker 1: phone or stealing your data, and it's it's depressing, but
Speaker 1: it's really important information. I mean, these are kind of
Speaker 1: things we need to know. I mean, you, of course
Speaker 1: focus towards the financial and try to get us to
Speaker 1: have the attitude that we need to take care of
Speaker 1: ourselves and how to do so, and how to properly
Speaker 1: plan for our retirement and how to manage things. So
Speaker 1: I think it's all valuable. Although you know what, negative
Speaker 1: news gets the clicks, and that's kind of what's been
Speaker 1: going on of late in the financial markets. I saw
Speaker 1: that weekly jobless claims jump to two hundred and forty
Speaker 1: one thousand, the latest sign of economic trouble in CNBC's headlines.
Speaker 1: So when you file for unemployment this is for first
Speaker 1: time filings. What does that specifically mean that the person
Speaker 1: who is filing for unemployment has never filed for unemployment before.
Speaker 3: The first time, and kind of this go around there's
Speaker 3: this is obviously complicated stuff, but yeah, this is a.
Speaker 1: That's kind of why I asked the question, because people
Speaker 1: read that number and I don't think they give any
Speaker 1: measure of thought to really what it entails or what
Speaker 1: it means. So I kind of wanted to get a
Speaker 1: little foundational point before we talk about the broader economic
Speaker 1: trouble that this might portend.
Speaker 3: Yeah, so a first time filer is literally somebody who's
Speaker 3: submitting a claim for the very first time during this
Speaker 3: specified period. It distinguishes new claims from continuing claims. That's
Speaker 3: why we have two. There's two different phrases you'll hear
Speaker 3: whenever we talk about job as claims, first time filers
Speaker 3: and continuing claims. So, yeah, and these happen, of course,
Speaker 3: whenever the economy tends to slow down a little bit.
Speaker 3: As you mentioned, we're up to two hundred and forty
Speaker 3: one thousand first time filers. That's up eighteen thousand from
Speaker 3: the week before, and the Dow Jones organization was estimating
Speaker 3: two hundred and twenty five thousand. Remember, everything in the
Speaker 3: financial markets, in the economic analysis has to do with
Speaker 3: what did we think was going to happen and then
Speaker 3: what actually happened. So a little above the estimates. But
Speaker 3: I don't think it's a shock to anyone. Most people
Speaker 3: know somebody who is directly impacted by the decisions that
Speaker 3: our administration is currently making, which in the very short run,
Speaker 3: here there's no way to for everyone to withstand all
Speaker 3: of these tariffs, all these extra challenges without some kind
Speaker 3: of reaction seeing companies say, you know what, we got
Speaker 3: to pull in for just a little for a little bit,
Speaker 3: and hopefully we'll make it through the other side and
Speaker 3: bring everybody back on.
Speaker 2: But there has to be a reaction to this right now.
Speaker 1: So there is some connection to the tariffs and people's
Speaker 1: dealing with the tariffs, preparing or otherwise reacting to them.
Speaker 1: That's connected with the higher weekly job claim.
Speaker 3: Absolutely, because because think about it this way, a tariff is,
Speaker 3: you know, whether we whether good, bad, or in different
Speaker 3: a tariff is an extra outlay of cash that a
Speaker 3: company has to start paying to keep its business going
Speaker 3: forward any way you want to slice it. That is
Speaker 3: the thing that's happening. So that means they might have
Speaker 3: to be backing off on other things. So maybe there's
Speaker 3: some some smaller product they sell or something like that
Speaker 3: that's just not all that viable, and therefore they may
Speaker 3: have to shut down that division or at least mothballet
Speaker 3: for a little while. That costs people jobs, and they
Speaker 3: may be looking for opportunities to save just so we
Speaker 3: can buy some time and I've got I've got clients,
Speaker 3: I've got some personal friends who are talking about we
Speaker 3: need to be able to bring in parts and raw
Speaker 3: materials from overseas. Didn't see these tariffs coming, you know,
Speaker 3: last year, so we didn't exactly plan for it, right,
Speaker 3: and we can't afford to double overnight or cost of
Speaker 3: good soul, which is basically what's happening here. Things got
Speaker 3: twice as expensive as they were last year. Nobody planned
Speaker 3: for that. The ones who have the you know, who
Speaker 3: have the deepest pockets and the best ability to weather
Speaker 3: the storm are the ones who are going to be
Speaker 3: here on the other side of it. But if you're
Speaker 3: not in that situation, then there's a lot of pain
Speaker 3: out there.
Speaker 1: Yeah, And I'm just part of me is kind of
Speaker 1: surprised at how quickly the implementation of the tariffs have
Speaker 1: went in and how quickly they've been implemented. It seems
Speaker 1: to me like there will be a very very complicated
Speaker 1: process that once you know, you declare whatever given tariff
Speaker 1: is going to be applied, you can actually connect it
Speaker 1: to an imported product and have that tax or that
Speaker 1: tariff ode right away. That's like the peace of God.
Speaker 1: I don't know, I don't know how they can accomplish
Speaker 1: that and how. That's why I'm kind of shocked that
Speaker 1: it has this immediate effect because the tariffs have only
Speaker 1: been in place now for what six weeks or two months?
Speaker 2: Yeah, So a couple thoughts on that.
Speaker 3: I mean, first off, this administration is a more so
Speaker 3: than any other administration in history, has been tearing band
Speaker 3: aids off left and right. Let's just do it, make
Speaker 3: a mass break things and then we'll move on. The
Speaker 3: other thing, too, is remember what the market is always
Speaker 3: trying to do, and what business people are always trying
Speaker 3: to do is anticipate. So, yes, the tariffs have only
Speaker 3: been in place for a short while, but we've been
Speaker 3: talking about them since really since November because Trump talked
Speaker 3: about them all through his campaign, so there's been a
Speaker 3: whole lot lot of anticipation about it. Business has started
Speaker 3: to rejigger and shuffle things. That's why we're seeing we're
Speaker 3: seeing we saw a decline in the overall GDP of
Speaker 3: the United States. It wasn't because demand fell or anything
Speaker 3: like that. It was because businesses were holding off on
Speaker 3: US based purchases of supplies and things that they need
Speaker 3: in favor of buying a bunch of stuff that they
Speaker 3: all they knew they would need kind of stocking up
Speaker 3: before the tariffs hit. So we saw a much bigger
Speaker 3: trade imbalance due to that.
Speaker 1: Right, And I saw an article about night Trial night
Speaker 1: Trial gloves as surgical gloves, and there is a US
Speaker 1: manufacturer then obviously could not compete with Chinese production because
Speaker 1: how much cheaper it is. But it's finally getting a
Speaker 1: whole lot more orders. So there's one business that has
Speaker 1: benefited from this, among other businesses that were in this
Speaker 1: article that I read about how the tariffs have helped
Speaker 1: US industries in certain areas. But he said he has
Speaker 1: a lot of customers that wouldn't do business with him
Speaker 1: because of the price of his gloves now coming to
Speaker 1: him and saying, hey, we need these gloves, and they're
Speaker 1: placing orders with his company because now his price is
Speaker 1: actually competitive with the tariff in place.
Speaker 2: Yeah. Now, now think of the downstream effect of that.
Speaker 3: So they're not these companies who are purchasing those gloves
Speaker 3: from him, These organizations, they are not saving money themselves.
Speaker 3: They're actually paying more than they were less. Exactly, it's
Speaker 3: still a cost.
Speaker 2: Increase for them.
Speaker 3: So this is going to be this will do a
Speaker 3: lot of damage with a lot of ripple effects from this,
Speaker 3: and it's going to take a lot of wherewithal for
Speaker 3: somebody to for organization to weather the storm.
Speaker 1: Well and real quick before we move on to the
Speaker 1: next topic, and we take a break before we do that.
Speaker 1: I've seen many articles and I'm sure you have too,
Speaker 1: Brian James Mallworth Financial China's economy is not doing real
Speaker 1: well and a lot of people there's been a lot
Speaker 1: of workers protesting in the streets that haven't been paid.
Speaker 1: And I saw most recent article US tariffs may drive
Speaker 1: China's economy into depression. Now, whether or not that's true,
Speaker 1: can you guess what that global ramification might be if
Speaker 1: China were to actually go into a depression but that
Speaker 1: have a profound impact or any impact on the United States?
Speaker 2: Well, I would.
Speaker 3: Everything's connected to everything, So if the United States sneezes,
Speaker 3: everybody suffers, that's what we're you know, we're beating the
Speaker 3: daylights out of the rest of the world. Were the
Speaker 3: decisions that we are proactively making right now. China is
Speaker 3: the world's second largest economy. So while while we are
Speaker 3: in direct of somewhat violent competition with them. Economically speaking,
Speaker 3: if if China ends up going into recession, that means
Speaker 3: they will spend less money and there will be other
Speaker 3: trade imbalances changing. There will definitely be ripple effects from that.
Speaker 3: Because you're rooting for them or rooting against them, they
Speaker 3: still factor into the equation. So if they're suffering and
Speaker 3: they're not spending as much money, then that means there
Speaker 3: are other other impacts that will happen to other countries.
Speaker 3: There's just a great reshuffling of the decks. This is
Speaker 3: again globalization as how we got here. Everybody's connected to
Speaker 3: everybody else. So if one sneeze is everybody else gets
Speaker 3: a cold. That's kind of how it's been for a
Speaker 3: while now. So I would very much say that any
Speaker 3: any effect on such a large economy, such a large
Speaker 3: supplier of purchasing effectively, is going to have an impact.
Speaker 2: For sure.
Speaker 1: Yeah, they do buy from other countries. I mean they
Speaker 1: we have an imbalance with China, but that is an imbalance,
Speaker 1: not a one sided. They only we buy from them,
Speaker 1: So I can see how that could impact us if
Speaker 1: they're not selling their stuff because they've gone into depression.
Speaker 1: Complicated it is, and what's what we got, Brian James.
Speaker 1: We'll talk about consumer confidence coming up. Young workers, well
Speaker 1: they have burnout and their concerned living paycheck to paychecks,
Speaker 1: plus mind blowing starter home prices. We'll talk about those
Speaker 1: subjects coming up with all Worth Financials Brian James. I
Speaker 1: hope you can stick around fifty five KRC the talk
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Speaker 1: I says we got falling for the weather, bloudy day
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Speaker 1: K eighteen fifty five r C detalk station, Happy Monday,
Speaker 1: It's money Monday. It's Brian James pivoting over from jobless
Speaker 1: claims to consumer confidence. Not going in the right direction
Speaker 1: with consumer confidence, Brian James, what's the story on this one?
Speaker 2: Consumer confidence is down? Go figure. That's the shocker of
Speaker 2: all shockers.
Speaker 3: So fell by seven point nine points last month in April,
Speaker 3: all the way down to eighty six. This is the
Speaker 3: fifth consecutive month of declining confidence. And honestly, if you
Speaker 3: think about that, that coincides exactly with the election. So
Speaker 3: I think that there was a perception out there, and
Speaker 3: it's not that people don't support there's obviously a good
Speaker 3: chunk of the population that supports the Trump administration in
Speaker 3: the situations that they bring about. But at the same time,
Speaker 3: logic dictates that the decisions that are happening, their decisions
Speaker 3: that are coming out are are going to have a
Speaker 3: short term here, and the President himself has said that
Speaker 3: many times. So five months of declining confidences, people began
Speaker 3: to anticipate that these kinds of things are going to
Speaker 3: have an impact. So lots of pessimism around there, just
Speaker 3: future business conditions, employment prospects. I'm worried about my income,
Speaker 3: so on and so forth. And this is all kind
Speaker 3: of natural. This is the part of the cycle when
Speaker 3: we're rejiggering exactly how we present ourselves as a country
Speaker 3: to the rest of the world. We are making it
Speaker 3: more expensive to do business with us, that is, you know,
Speaker 3: the administration's goal here is long term gain for some
Speaker 3: short term pain, and so right now we're in the
Speaker 3: middle of the short term.
Speaker 1: Well, we live in an immediate gratification kind of mindset
Speaker 1: world these days. People aren't willing to wait it out
Speaker 1: to see what happens, and if it does, we do
Speaker 1: end up reaping the benefits that he has promised as
Speaker 1: a consequence of these So but if real time your
Speaker 1: job might be on the line, I can certainly understand
Speaker 1: your confidence would go down.
Speaker 2: Yeah, it doesn't make sense.
Speaker 3: I mean, this is just a situation where people are
Speaker 3: re examining exactly what their situations are. And as we've
Speaker 3: talked before, businesses themselves are having to make decisions.
Speaker 2: I want to ensure growth through this environment.
Speaker 3: That means I need to maybe take a hit here
Speaker 3: in the short run, and I have to shut down lines,
Speaker 3: I have to lay off some people.
Speaker 2: I would very much prefer.
Speaker 3: To keep those kinds of things, but I got to
Speaker 3: keep my nose just above water. Until we get through this,
Speaker 3: we can kind of get back to normal. So we
Speaker 3: are seeing some pretty steep declines in these confidence numbers,
Speaker 3: and we'll have to see where they go over the
Speaker 3: next few weeks. Well, and this might very well translate
Speaker 3: over to the leading industrial indexes S and P five
Speaker 3: hundred doubts that are I know we're down over the year,
Speaker 3: but I mean we've had some pretty big jumps of late.
Speaker 3: It's as if the market is resisting the concerns expressed
Speaker 3: by the masses.
Speaker 2: Well, I remember what.
Speaker 3: We talked about that the market is always trying to
Speaker 3: anticipate what's coming next. So yeah, there was a very
Speaker 3: big boying about a month ago. We hit the Well
Speaker 3: we're still down for the year, but the Nasdaq was
Speaker 3: down fifteen eighteen percent at its very lowest point. Now
Speaker 3: as we're sitting here, it's only down about seven percent.
Speaker 3: Everything bounced in early April, and as we've talked about before,
Speaker 3: if you are a diversified portfolio holder, meaning you got
Speaker 3: a little bit of everything, you got a horse in
Speaker 3: every race, then you're actually doing okay.
Speaker 2: Well.
Speaker 3: A lot of diversified portfolios are actually up for the year,
Speaker 3: believe it or not, because there are other things out
Speaker 3: there then the S and P five hundred, I'm speaking
Speaker 3: specifically of international companies, which again are up fourteen percent
Speaker 3: year to date. If you're somebody who abandoned everything but
Speaker 3: the US over the past fifteen years because of how
Speaker 3: the S and P five hundred have performed, then you
Speaker 3: are now missing out on a more stable.
Speaker 2: Portfolio because of all this.
Speaker 3: But yes, about a month ago, things bounced back up
Speaker 3: because the market is simply anticipating that these tariffs are
Speaker 3: going to come and go. Eventually, cooler heads will prevail
Speaker 3: and everybody will find their new position in all of this,
Speaker 3: and the market will go forward. Underneath, things are relatively healthy.
Speaker 3: There is still demand. We don't have a two thousand
Speaker 3: and eight type situation. The economy wants to go up
Speaker 3: and the market does too. We just need the fog
Speaker 3: to clear a little bit.
Speaker 1: Well, and since the experts and amusing my little quote
Speaker 1: fingers here are in the market, so the ones that
Speaker 1: run the businesses are the ones that do the the
Speaker 1: you know, the investment investment decisions.
Speaker 2: That's optimism right there.
Speaker 1: If they have fact with this bump in the markets,
Speaker 1: smart people know that things are going to get better
Speaker 1: at some point in potentially or possibly the near future.
Speaker 1: If the markets were tanking, all these smart people are saying, no,
Speaker 1: it's going to be it's going to hit the fan
Speaker 1: and it's going to be terrible. So that's a little
Speaker 1: bit of optimism built into this. If you're not even
Speaker 1: if you're not invested in the market, well they're saying
Speaker 1: things will probably be better.
Speaker 3: Yeah, and again I'll go back to anticipation. Those smart
Speaker 3: people have decisions they have to make, they have to
Speaker 3: grow their portfolios. And I'm not just talking about investment people,
Speaker 3: that's business people in general. They're moving things around to
Speaker 3: take advantage of what they see coming. I would remind
Speaker 3: everybody that the back in two thousand and eight, when
Speaker 3: you know a lot of people were invested then, and
Speaker 3: we most most of us remember that as kind of
Speaker 3: a benchmark of how scary things can be. The bottom
Speaker 3: of that market was March ninth of two thousand and nine.
Speaker 3: If you go back and read the headlines, Brian, you
Speaker 3: will not see positive headlines until around June of that year.
Speaker 3: So the headlines are always going to trail reality. The
Speaker 3: market wants to go up, it anticipates the good news coming,
Speaker 3: but it also makes a lot of false head starts.
Speaker 1: Well, and that was the other thing I was going
Speaker 1: to say in connection with consumer confidence, I mean, try
Speaker 1: to find a positive headline.
Speaker 4: In the world.
Speaker 2: It's it's a Sysivian challenge.
Speaker 1: You know, unless you look at things like you are
Speaker 1: sort of objectively looking at the market and recognizing the
Speaker 1: decisions that are making to keeping that have caused the
Speaker 1: market to bounce back. That's actually a positive story built
Speaker 1: into all of this. But everywhere you turn, it's woe's me,
Speaker 1: and this is terrible, and Trump sucks and you know,
Speaker 1: tariffs are killing everybody. I mean, it's just it's hard
Speaker 1: to find a bright spot in terms of what people's
Speaker 1: perception of how things are out in the world.
Speaker 2: But we're not the experts. Really we're just sort of
Speaker 2: living our.
Speaker 1: Lives day to day, and that's you know, I think
Speaker 1: people a lot of people are quite off and influenced by,
Speaker 1: of course what they read, and it maybe has no
Speaker 1: connection with necessary reality. Yeah, and that's that's why we
Speaker 1: have to step back and look at the forest, not
Speaker 1: the trees.
Speaker 3: So again that's we we focus always on financial planning.
Speaker 3: We have to deal with this stuff. Something's got to
Speaker 3: grow and keep up with inflation. That's going to involve
Speaker 3: the stock market in some way, shape or form for everybody.
Speaker 3: This is what comes along with it. So let's understand
Speaker 3: the history and make sure we're not putting ourselves in
Speaker 3: a bad spot with it.
Speaker 2: All.
Speaker 1: Right, Well, we'll bring buying back and find out that, well,
Speaker 1: apparently young workers are ready to quit, burnout, pay concerns
Speaker 1: and I don't know from what job they're in now
Speaker 1: to what job they might take, but pay concerns driving
Speaker 1: exodus according to the study fines analysis, we're gonna hear
Speaker 1: about that. Plus, thank god you don't live in one
Speaker 1: of a multitude of California cities. The price of starter
Speaker 1: homes has just gone through the roof. But that's just
Speaker 1: not happening in California. It's happening all over. We'll get
Speaker 1: a little bit on that from Brian James as well.
Speaker 1: One more with money Monday, All with Financial Brian James.
Speaker 2: Stick around fifty five KRC. The Simply Money Minute is
Speaker 2: sponsored by Channel IM.
Speaker 1: With the forecasts, we're gonna have a cloudy day to
Speaker 1: day chances splotty afternoon showers fifty seven for the high.
Speaker 1: Chance of showers remains overnight clouds remain as well, forty
Speaker 1: six for the low. Sixty five tomorrow with again a
Speaker 1: cloudy day with isolated showers overnight same thing, clouds showers
Speaker 1: forty nine and a dry Wednesday.
Speaker 2: Glad to be able to say that.
Speaker 1: Seventy five for the high on Wednesday with cloudy sky's
Speaker 1: fifty two.
Speaker 2: Now traffic time from the.
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Speaker 4: slow from Memorial Chuck Ingramont fifty five KR.
Speaker 2: See the talk station Hey, twenty.
Speaker 1: Eight fifty five car c detalk station Hey, Very Happy
Speaker 1: Monday too. One more segment with all Worth Financials. Brian James. Brian,
Speaker 1: young workers are burned out. I just kind of laugh
Speaker 1: at that. I remember when I first started practicing litigation,
Speaker 1: you know, twelve hour days, six days a week, and
Speaker 1: we did it year after year after year, and I honestly,
Speaker 1: while I might have complained at the time, I wasn't
Speaker 1: going to quit over it. Anyway. What's the story on
Speaker 1: this when Brian.
Speaker 3: James, seventy three percent of gen Z and seventy percent
Speaker 3: millennials are actively looking to change jobs. In other words,
Speaker 3: three out of every four of those young people sitting
Speaker 3: next to you are sniffing around. And this is coming
Speaker 3: from just overall frustration with the job, burnout feelings, and
Speaker 3: just an overall monotony of the work and so forth. Different, Yeah,
Speaker 3: a little bit of monotony. They're not super excited about
Speaker 3: the day to day, you know, as much.
Speaker 2: As they're older.
Speaker 1: Okay, so it's a question of lacking intellectual stimulation or satisfy.
Speaker 2: It's not.
Speaker 1: I mean, I know, we got a pay element on
Speaker 1: this before we get to the living paycheck to paycheck component,
Speaker 1: but they would be satisfied in so far as their salary.
Speaker 1: But they're just tired of doing what they're doing.
Speaker 3: Yeah, And I think there's another element I heard that.
Speaker 3: I think there's another element to this. It's not even
Speaker 3: mentioned in the article. And I'm speaking as i'd speak
Speaker 3: to my clients. I'd always tell them that they their
Speaker 3: kids are my clients too, So I'll talk to anybody
Speaker 3: about anything. And the impression that I get from them
Speaker 3: is that they feel that the hill is so much steeper.
Speaker 3: We all got to push a rock up a hill
Speaker 3: to get to retirement. They feel their hill is a
Speaker 3: lot steeper because they're not going to have you know,
Speaker 3: they they're they're bombarded with the fact that social security
Speaker 3: is going to go away. It's not, but there's still
Speaker 3: the mental component that they're that socicurity might take a hit,
Speaker 3: that things are more expensive, inflation and all of this,
Speaker 3: and they're they're among some of them, there's a feeling
Speaker 3: of hopelessness. Why does it matter that I have that
Speaker 3: I want to grind because I'm not going to be
Speaker 3: able to afford it anyway. The deck is so stacked
Speaker 3: against me. That doesn't mean they've done the math to
Speaker 3: analyze it, but that's the drum beat that's out there again.
Speaker 3: Because of social media they have, they have a lot
Speaker 3: more to contend with in terms of the loudness of
Speaker 3: all of their.
Speaker 1: You you know, I back of my mind immediately started
Speaker 1: thinking of the seventies and stagflation. Things were not pretty
Speaker 1: in this country at all, and a lot worse than
Speaker 1: they are right now. But we've had so many decades
Speaker 1: of without I mean, there's been bumps in the road,
Speaker 1: as you've pointed out many times, like you know, the
Speaker 1: tech bubble burst and the housing bubble burst, but you
Speaker 1: know for the last several decades, and we've had nothing
Speaker 1: but you know, rainbows and puppy puppies. It's just it's
Speaker 1: been really overall a great environment. They haven't seen it,
Speaker 1: Kane before.
Speaker 3: Yeah, and well everything negative gets amplified.
Speaker 2: Yeah. Yeah.
Speaker 3: So I was talking to my son and he was
Speaker 3: explaining to me how relationships work nowadays. You can't break
Speaker 3: up with someone because they never go away. You see
Speaker 3: them on social media, you see how they're linked, you
Speaker 3: see what they're talking about, all of this stuff. This
Speaker 3: is a much different environment than any of these other
Speaker 3: generations have had to contend with.
Speaker 2: And I kind of got what he was saying. And
Speaker 2: it's scary out there.
Speaker 3: And you attach that to trying to raise a family,
Speaker 3: start your career and all that. You get surrounded by, Oh,
Speaker 3: so and so is doing so much better than you.
Speaker 3: So and so just bought this house. Everybody's happy, wonderful.
Speaker 3: What's wrong with you?
Speaker 2: Right? You can't get away from that and focus on
Speaker 2: your job now.
Speaker 1: And I think every generation has struggled with some component
Speaker 1: of what you just said before. And I think you
Speaker 1: just try to focus on your own life and quit
Speaker 1: comparing yourself to the Joneses. We don't all live at
Speaker 1: a different level, and we all live at different levels,
Speaker 1: and thus it has ever been But back to the
Speaker 1: paycheck to paycheck component. I suppose that will be a
Speaker 1: little disheartening if you can't save any money at all. Yeah,
Speaker 1: and that's another three quarters of people.
Speaker 3: Seventy four percent of employees say they're living paycheck to paycheck,
Speaker 3: which simply means that I get paid and I pay
Speaker 3: my bills and the checking account goes back down to zero.
Speaker 3: I can't make any headway. I can't save money to
Speaker 3: take the family on a vacation. I can't work on
Speaker 3: paying my mortgage down faster. I can't bump up my
Speaker 3: four oh one K percentage contribution. I just feel like
Speaker 3: I'm stuck in the mud. And then that leads to this,
Speaker 3: is there another opportunity out there? What should I be doing?
Speaker 3: Can I Can I put myself in a better spot?
Speaker 3: Or it leads to quiet quitting and just kind of
Speaker 3: hanging it up and doing the bare minimum.
Speaker 1: Okay, pivoting over one of the reasons people are a
Speaker 1: living in paycheck to paycheck. I couldn't believe the numbers
Speaker 1: on this one, Brian James. Starter homes top one million
Speaker 1: dollars in two hundred and thirty three cities. That's doubled
Speaker 1: since since am I sorry it was eighty five cities
Speaker 1: that had that price in twenty twenty. This is amazing.
Speaker 3: Yeah, so five years ago only eighty five cities had
Speaker 3: a median start These are starter homes, right, So the
Speaker 3: typical starter home now costs a million dollars or more
Speaker 3: in two hundred and thirty some areas.
Speaker 2: Now, this is not affecting Cincinnati. We're still we've got
Speaker 2: a booming real estate market.
Speaker 3: But starter homes around here about a quarter million dollars so,
Speaker 3: which is still a relative to our local environment. That
Speaker 3: still has an impact, of course, But this is this
Speaker 3: is highlighting the affordability crisis in the housing market. And
Speaker 3: this is another thing I can't like we just got
Speaker 3: done talking about I'm unhappy with my job. I don't
Speaker 3: get paid enough. Why am I bothering to do all this?
Speaker 3: I just can't make things go. And part of this
Speaker 3: can be because of the mortgage payment that stares somebody
Speaker 3: in the face on the first of every month.
Speaker 1: That in when they re assess your property taxes and
Speaker 1: it jumps sixty three percent, and you're not prepared for
Speaker 1: that kind of hit like Claremont County and other counties
Speaker 1: have struggled with. You know, it's a little disheartening, to
Speaker 1: say the least. Although the bright spot in this is
Speaker 1: thank god we don't live in California. He already gave
Speaker 1: props to the City of Cincinnati for hiving much lower
Speaker 1: than a million dollars one hundred and thirteen of these
Speaker 1: two hundred and thirty three cities are in California. That
Speaker 1: speaks volumes, New New York, New Jersey right behind. To me,
Speaker 1: none of this is a shock because these are the
Speaker 1: places we always hear about is being more expensive with
Speaker 1: regard to real estate. So this is also revealing that
Speaker 1: the United States is short by about four and a
Speaker 1: half million homes. In other words, if we had four
Speaker 1: and a half million more homes available for purchase, the
Speaker 1: purchase price would be down closer to a normal level.
Speaker 1: That's why you're still seeing subdivisions. We live up here
Speaker 1: in Butler County's new subdivision going up in a cornfield
Speaker 1: every other week. It seems like we've got some catching
Speaker 1: up to do. The builders are certainly doing their part
Speaker 1: to put them out there, but we haven't gotten a
Speaker 1: point yet where it has truly made an impact on
Speaker 1: the price of a starter home. Well, and I imagine
Speaker 1: those brand new subdivision homes probably a little more pricey
Speaker 1: than you know, the two hundred and fifty thousand figure
Speaker 1: you just mentioned, which means someone is going to be
Speaker 1: moving from maybe a starter home and buying one of
Speaker 1: the newer homes out in the subdivisions, which will free
Speaker 1: up some of these more affordable starter homes for the
Speaker 1: for the people. Yeah, the United States to a profit margin.
Speaker 1: That's where I live.
Speaker 3: So those builders are building the type of homes off
Speaker 3: of which they can make the most profit, and unfortunately
Speaker 3: that doesn't tend to be that starter home.
Speaker 2: No.
Speaker 1: I see the fixed rate mortgage. That rate dipped a
Speaker 1: little bit to six point eight one percent last week,
Speaker 1: which was previously seven point one seven So that's going
Speaker 1: in the right direction. Any before we part company, Brian James,
Speaker 1: any tea lea freading on the direction that's going to go.
Speaker 3: Well, we need to see exactly what's going to be
Speaker 3: happening here with the rest of the economy, you know,
Speaker 3: we we it's pretty clear out there that the President
Speaker 3: would very much like mister Jerome Powell to start cutting
Speaker 3: rates yesterday, but that is not happen and it does
Speaker 3: not appear likely. There is a meeting this week, but
Speaker 3: there is zero chance that we're going to see a
Speaker 3: rad cut out of this one. So I wouldn't look
Speaker 3: for movement there anytime soon.
Speaker 1: All Right, we'll write it through as we always do.
Speaker 1: Brian James Alworth Financial Camp. Thank you though for the
Speaker 1: time he spoke my listeners me every Monday. Look forward
Speaker 1: to another conversation next week. Have a great week, Happy Monday.
Speaker 1: Talk to you in seven days. Stick around, folks, got
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Speaker 4: Andy and