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Speaker 1: Welcome to another episode of the Chicks on the Right

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podcast where we talk to our friend and sponsored the show,

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Zach Abraham from Bulwart Capital Management. And today we're going

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to talk we're all gen xers here, We're all proud

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of being gen xers. And I know I often think

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of the good old days. Growing up in the eighties

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was like the best time to grow up ever. I

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just am one hundred percent sure of that. No one

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can tell me otherwise.

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Speaker 2: You're right, And I think.

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Speaker 1: That now millennials and Gen Z kids often say they

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often talk about the good old days because that was

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a time when it was a lot easier for people

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in that age group, young people to get ahead or

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just be in the middle class. And so recently there

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was a real interesting video that John Stossel put out saying, yeah,

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there's that complaint out there, but isn't really true, because yes,

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it was easier to get a home, for example, but

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the homes were way crappier than they are now. They

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didn't have air conditioning, they didn't have washers and dryers,

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they didn't have all of this stuff. So are we

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comparing apples and oranges, or do kids today really really.

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Speaker 3: Have it bad. Yeah, And also they didn't have Starbucks.

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They didn't have they weren't getting their nails done, they

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weren't getting their eyebrows done, they weren't like, they didn't

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have all the social media stuff. They didn't have fourteen

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hundred dollars phones. I mean, there's just a plethora of

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items that kids today have that I didn't have when

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I was in my twenties, you know what I mean.

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And I was living with four other people in an

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apartment like stacked, you know, four high, you know what

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I mean. It was. Yeah, it's different.

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Speaker 4: It is very different. And I think when you start

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talking about it, is it better or worse? I think

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that's all about context, right, Like what are you referring to?

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And I think both things can be true at the

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same time, meaning there is absolutely that part of human beings.

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Speaker 2: That you know that.

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Speaker 4: What is the term or you know, nostalgia, right, we

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nostalgia eyes for I know that's a butchery of the

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English English language.

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Speaker 3: But we do that.

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Speaker 4: It's yeah, we idealize the past, right, and we tend

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to see it with just rose colored glasses on. But

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I think that that was much more true if you

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look at like the eighties.

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Speaker 2: For instance, if you heard kids.

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Speaker 4: Saying or people talking about the good old days back

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in the eighties, are like, you know, so when we

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grew up back then, the good old days meant the

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fifties and the sixties, right, I think that's a better

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comp for how people look at things and talk about

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the good old days. And because there's something really fascinating,

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and I've had an interesting ability because of my job

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to observe this. If you and I, if we start

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talking about our childhoods, growing up, high school, that kind

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of stuff, us three are going to have different stories,

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but they're going to be the same story, right. It's

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gonna be different places, different names, different cases. It's gonna

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be the same experience relatively. When I have those conversations

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with eighty year old clients, it's the same way. Right,

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when I go have those conversations with my children are sixteen, seventeen,

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eighteen year olds today, it's completely different.

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Speaker 2: It's a completely yeah, it.

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Speaker 4: Is a completely different reality. There is a different way

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that they associate with adults. There's a different way they

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associate with each other. There's different rhythms and things that

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run their days. What they do after school, is different.

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Speaker 2: Right. You know, for instance, I raise three kids.

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Speaker 4: I'm probably the only guy in my neighborhood at least

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from what I can see, that still has to tell

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kids when they get home to take off their school

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clothes because they're.

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Speaker 2: Going to go outside and play.

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Speaker 4: No, right, nobody does that, and just so yes that

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we I think that I didn't see the Stoscil piece,

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but I do think that there's this habit of idealizing

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the past. But when you look at how kids are

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growing up these days and what's happening culturally, I think

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it's really hard to I mean, look, you could be

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a guy working in a factory making automobiles in Detroit

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at twenty four years old and use that I'll read

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to go buy a night starter.

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Speaker 3: Home, right, and the homes were the homes were a

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lot more modest back then. They were smaller, they were cheaper,

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and obviously they were cheaper. Everything was cheaper everything. I mean,

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like Mock and I watched a movie the other night

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at her house when we were together from the nineties,

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and we were we were just like we were joking

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because in one of the scenes they were renting a

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car and the car rental was like fourteen ninety five

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a day and we were like, oh my god, what

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like we were freaking out. So we're like this from

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the nineties. So everything we know inflation is crazy. Everything

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was cheaper back then. But the houses, by and large,

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we're I mean, they weren't like they are now. Like

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houses are like McMansions now, you know, they're huge, and

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they have all the they have all the fixings in them,

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and like kids that are in their twenties and thirties,

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they want these things. And I saw the other day

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that like the average first time home buyer is forty.

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Now that's older, it's a lot older.

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Speaker 4: Yeah, and now here's, here's, here's this is going to

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go back to the same thing. So I'm going to

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sound like a blow broken clock. But the biggest reason,

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the biggest reason by far, that housing is so expensive

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is because you had zero percent interest rates for fifteen years.

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And if you think about that, if you think about

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like you said, there's so much more stuff in a

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house today than there was forty years ago.

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Speaker 2: Yeah, thank you to low interest rates.

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Speaker 4: Right, It's not like the standard of living has jumped

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that much. Right, It's not like incomes, for instance, we

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know that the last so the last expansion that we

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came out of, meaning starting in nine, right the end

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of the eight to eight oh nine recession going into

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COVID was the longest and today because technically you had

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a COVID, you had a recession during COVID, but stock

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markets don't go up seventeen percent years where you have recessions.

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Speaker 2: Right, So it wasn't a real recession. But it's been

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the longest economic expanse.

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Speaker 4: In US history for ever, and yet it has also

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been accompanied by the weakest in wage growth up until

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this inflationary pressure kicked in. And so, yeah, how do

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you explain the rising price of houses and the fact

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there's so many more goodies in them? It's a factor

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of low interest rates. And people go, well, that's why

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I like low interest rates, And I'm like, but that's

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also why you like record levels of mortgage stat too.

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Speaker 2: Right, there's a cost.

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Speaker 4: And I think if I look at culture today, I

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think the younger generation will be far better off if

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they had less marble in their starter home and the

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prices were thirty to forty percent lower.

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Speaker 3: Yes, totally.

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Speaker 4: So, yeah, and the guys, these are the issues that

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pop up that we as adults need to be thinking about.

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We want the government to step in and steady the

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ship in a time like oh, wait to nine, But

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nobody stops to think about what is the cost of this,

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right And the problem is is that the costs of

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decisions like that typically don't show up until much later,

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and by the time you're looking at the symptoms rising

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to the.

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Speaker 2: Surface, it's too late.

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Speaker 4: Right like you've are, the damage is done, and they

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like this is when you don't like what free markets do.

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When you only want the upside, you don't want the downside.

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These are the situations that arise. There are no natural

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factors for what's going on in housing right now is

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one hundred percent government created the whole thing.

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Speaker 2: The whole thing well, and.

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Speaker 1: It's kind of like the idea that we you know,

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even the definition or a description of someone who in

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the United States is living in poverty, they still probably

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have a big screen TV. They have a car, they

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have electricity, they have ac they have all these things.

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Speaker 2: Yeah, that's what I'm saying.

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Speaker 4: It means they have more screens per household. Our part,

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we are the first country in the history of mankind

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that we know of that the biggest correlation between our

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poorest is that they are the most overweight, right, that's

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that's the highest correlation to low income. They think about that,

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Think about the history of humankind.

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Speaker 2: Fat people were.

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Speaker 1: Rich, yes, right, yeah, that's right, that's right.

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Speaker 4: Right. Remember you what was attractive back in the seventeen

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hundreds was if you were twenty five pounds.

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Speaker 2: Overweight and pail right, right, So think of.

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Speaker 4: That dynamic that shifted and so you know, and and

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and that's the problem when you want guaranteed it and

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you know, we've talked about this too, but it's also

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the changing of the culture. Meaning you know, fifty years ago,

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America's culture.

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Speaker 2: Was much different.

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Speaker 4: And the reason it was much different is you add,

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you were much closer to real immigrants, right, meaning and

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what I mean by that is people that came to

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the United States to get a fair shake, right, did

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not come here because of what was promised was come

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They came here because of what was prevented, right, Like,

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they weren't going to have a government breathing down their neck.

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And the further you move away from that, the more

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cushion you give people, the more handouts, the more the

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more you're diluting you know that American attitude right of

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get up early in the morning and kick butt and

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all that kind of stuff, and the further we get

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away from it, those less are lost.

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Speaker 2: And yep, yeah, so true.

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Speaker 1: These these are the insights that we love you for, Zach,

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and people can hear a lot more of them if

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they attend one of your webinars or if they request

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a portfolio review with you. How do they do that?

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Speaker 2: Yeah, I got to have you do transitions for me

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all the time. I know she's the best. I know it.

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She's got to like Moonlight on our podcast to just

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transition us contractor out exactly.

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Speaker 4: The easiest way to get a hold of us go

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to Bulworkapitalmanagement dot com.

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Speaker 2: Prop box shows up. You can sign up for the

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webinar there. It's free.

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Speaker 4: We're not going to call you, We're not gonna bug you.

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If you like it, great, you can hook up with

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me or one of our advisors. If not, hopefully you'll

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learn more. You can also go to Know Your Risk podcast.

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We do a daily dots than an hour show once

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a week with interviews and things like that. All things

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finance and investing, so not hard to find. Is Google,

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Know Your Risk podcast or Bulwark Capital Management and that's

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where you'll find us perfect.

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Speaker 2: Than you, thanks ladies. Investment advisory services offered through TRACK

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Financial loc and SEC Registered Investment Advisor.

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Speaker 4: The opinions expressed in this programmer for general informational purposes only,

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and are not intended to provide specific advice or recommendations

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for any individual or on any specific security. Any references

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to performance of security so are thought to be materially accurate,

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and actual performance may differ investments involved risk and are

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not guaranteed.

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Speaker 2: Past performance doesn't guarantee future results. Track twenty four to

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three zero eight