Speaker 1: Welcome to another episode of the Chicks on the Right
Speaker 1: podcast where we talk to our friend and sponsor of
Speaker 1: this show, Zach Abraham from Oward Capital Management. And today, Zach,
Speaker 1: we're going to be talking about youngsters, the age group
Speaker 1: of the twenty five to thirty nine year olds, because
Speaker 1: there's new data from JP Morgan that suggests that this
Speaker 1: age group is investing a whole big bunch over buying
Speaker 1: a house, probably because houses are super expensive and they're
Speaker 1: looking at the market like this is something I can
Speaker 1: do at my own level and get some good returns
Speaker 1: on Is this good? Is this good for them? Do
Speaker 1: you advise this? What would your advice be to this
Speaker 1: age group?
Speaker 2: Great?
Speaker 3: Great question, And like I was telling you guys off
Speaker 3: the air, it's I was thinking along these lines for
Speaker 3: different reasons recently. So what brought this up in my
Speaker 3: mind was when you run an investment firm like I do,
Speaker 3: you get approached.
Speaker 2: You hear every everybody's investment ideas.
Speaker 3: Right, So, whether it's through text message, through friends and family,
Speaker 3: or at a family party, everybody's got this great investment
Speaker 3: for you. And what I've learned over my career and
Speaker 3: then also just through observation is that you there's a
Speaker 3: there's a way that everybody is best at investing, and
Speaker 3: and and people. If you are an investor, it takes
Speaker 3: some while. It's like it's like a sport figuring out
Speaker 3: what you're best at in that sport, you know what
Speaker 3: I mean. It takes a while some familiarity, but with
Speaker 3: most people, they get far too cute. And And what
Speaker 3: made me think about this recently was I was approached
Speaker 3: by some bodies of mine colleagues to get invested in
Speaker 3: this company, and I was really considering doing it, and
Speaker 3: then I started looking at what's around me, and I
Speaker 3: started looking at what we were doing in my own company.
Speaker 3: We're in the process of launching an ETF and and
Speaker 3: these other things that I thought, Okay, if I attention away,
Speaker 3: I know that I am very good at running my company,
Speaker 3: and I know that my company has been my best
Speaker 3: investment for me for me, right, And while this other
Speaker 3: investment may look attractive to me, I know it's going
Speaker 3: to steal time and attention a way from an investment.
Speaker 2: That I know is going to do very good.
Speaker 3: Right. So I made a decision to go, no, you
Speaker 3: know what, that might be a really good investment, but
Speaker 3: I know this one is right, and sticking to what
Speaker 3: I'm good at, sticking to what I know, and I
Speaker 3: cannot tell you. And this is one of those pieces
Speaker 3: of advice where you're either going to listen to me
Speaker 3: now or you're gonna believe me when you're sixty.
Speaker 2: Okay, which is if you look at people and I.
Speaker 3: Call them squirrel investors, right, squirrel squirrel getting drug off
Speaker 3: here right, I'm getting into crypto, I'm getting into four
Speaker 3: x trading. I'm doing this, I'm doing that. Think of
Speaker 3: how I've never seen a work. I've never seen a work.
Speaker 1: Okay, I've never saw like Nancy pelosidelines, like if you
Speaker 1: just do what she does, a lot of people are doing.
Speaker 3: Look, I think this is this is dead, honest truth.
Speaker 2: Okay.
Speaker 3: I am an active manager of portfolios meeting. We don't
Speaker 3: use mutual funds and ETFs. We do individual research on
Speaker 3: individual stocks and we pick stocks.
Speaker 2: Okay, So but between.
Speaker 3: My analysts and my trader, I pay for about one
Speaker 3: and a half million dollars a year for those groups
Speaker 3: for those people to work for me. Okay, when you're
Speaker 3: sitting at home picking stocks, you are competing against me
Speaker 3: and my team. That costs me one and a half
Speaker 3: million dollars a year. You might get one here or there,
Speaker 3: but you're not gonna win. Okay, my guys worked for
Speaker 3: JP Morgan and built algorithms.
Speaker 2: We do this twenty four hours a day, and they're good.
Speaker 1: I will tell you they're good.
Speaker 2: Thank you, thank you. So I don't say that to brag.
Speaker 3: Okay, I say that because if I went to your job,
Speaker 3: the same would be true. Right.
Speaker 2: So what I tell.
Speaker 3: People is either put money into the market on a
Speaker 3: consistent basis in ETFs and diversified mutual funds, or hire
Speaker 3: somebody else to do it, unless you're gonna do it
Speaker 3: full time. And even then, if you do it full time,
Speaker 3: be open to the idea that maybe you're not good
Speaker 3: at it. Right, there's this whole thing everybody can be
Speaker 3: a good investor. That's nonsense, that's total. That's like saying
Speaker 3: everybody can be a good CPA. If you'd seen me
Speaker 3: do math, you'd know that's not true, right, Like meaning,
Speaker 3: can anybody figure it out and throw money into an
Speaker 3: ETF and get good results over twenty years?
Speaker 2: Yes, everybody can do that.
Speaker 1: What about all the latest stuff where Elon is saying
Speaker 1: stop saving for retirement because AI is going to change
Speaker 1: the needs for money in general. And then like I'm
Speaker 1: always freaked out that AI is somehow going to steal
Speaker 1: all the money out of my bank accounts. Anyway, what
Speaker 1: are you hearing from clients? What are you telling clients
Speaker 1: about AI? And to pick to piggyback on that, do
Speaker 1: you think AI could replace the people like those people
Speaker 1: that you pay million you know, a million and a
Speaker 1: half dollars too?
Speaker 2: Yeah, hey, so so here here's the deal. Could they
Speaker 2: and are they?
Speaker 3: Yeah, our GUIDs are integrating AI on our stock like
Speaker 3: like right now, honestly, and I'm not going to because
Speaker 3: these these these younger guys that work with me, they've
Speaker 3: they've got great talent, and they're ascending.
Speaker 2: And they're very valuable for a lot of other reasons.
Speaker 3: But truthfully, AI is already a point where it really
Speaker 3: replaces the need for a junior analyst in our business,
Speaker 3: and a junior analyst is primarily involved in they're not
Speaker 3: making conclusions, but they're rounding you up the information. AI
Speaker 3: is phenomenal at that, right, But my guys guy and here,
Speaker 3: and I know you two know this, but speaking to
Speaker 3: everybody out there, this is another piece of advice that
Speaker 3: I had to learn.
Speaker 2: You can either fight change or embrace it.
Speaker 3: Okay, we don't. We don't get to play the game
Speaker 3: we want to play. We don't get to get play
Speaker 3: the game that we should play. We get the game
Speaker 3: that's given to us. Right, So what we have to
Speaker 3: do None of this stuff matters. What we need to
Speaker 3: do is how do we integrate AI into what we
Speaker 3: do so we can become invaluable to an employer. I
Speaker 3: always tell young people, I go, hey, how do I
Speaker 3: move ahead in life? And I go, make things easier
Speaker 3: and become impossible to live without for your employer, Right Like,
Speaker 3: once you do that, I've got several employees that are
Speaker 3: like that, Right, they know that they get compensated way
Speaker 3: above their age group and their competency. Why I can't
Speaker 3: lose them and they know that, right, So integrating AI
Speaker 3: into what we do the other thing. Do you don't
Speaker 3: need to save for retirement? And what he's talking about
Speaker 3: is living at the medium range, right, the substenence living
Speaker 3: right like not worrying about whether you're going to have.
Speaker 2: A roof over your head.
Speaker 3: He's not talking about being able to take vacations to Bermuda.
Speaker 3: All right, So do you need to be saving for retirement?
Speaker 3: Absolutely more now than ever.
Speaker 2: Why?
Speaker 3: Because your money is getting printed into oblivion. That is
Speaker 3: why gold's trading at fifty one hundred dollars. That's why
Speaker 3: silver is at eighty three dollars. That's why we were
Speaker 3: buying gold when it was at eighteen hundred dollars and
Speaker 3: silver was at fifteen, right, because you knew, no matter what,
Speaker 3: eventually this was going to play out. And one of
Speaker 3: the biggest sins I see right now is people are worried.
Speaker 2: They should be. People are concerned about the financial system.
Speaker 2: They should be.
Speaker 3: People are sitting in cash because they think they're going
Speaker 3: to lose all their money.
Speaker 2: Wrong. Wrong, Wrong.
Speaker 3: When when Rome finally tipped over, it's now, I didn't
Speaker 3: really have a stock market, but if it did, it's
Speaker 3: stock market. They did in certain ways, they traded things
Speaker 3: like that, but it would have been at an all
Speaker 3: time high. Why for the same reason that the best
Speaker 3: I want everybody to hear this. The best performing stock
Speaker 3: market over the last ten years.
Speaker 2: Do you know where it is? It is in Zimbabwe, Zimbabwe.
Speaker 3: Gosh, the stock market has averaged about eight hundred percent
Speaker 3: annual returns.
Speaker 2: Pretty impressive.
Speaker 3: Pretty impressive until you realize that over that same time
Speaker 3: their currency depreciated by about eleven hundred percent a year. Okay,
Speaker 3: so people are thinking about this all wrong. Government's printing debt.
Speaker 3: We've got all this debt, we can't repay. My stocks
Speaker 3: are going to crash. They might for small periods of time.
Speaker 3: What's going to happen? Look at gold, look at silver.
Speaker 3: All of this money needs places to go. Now, does
Speaker 3: that mean we should be putting it in tech companies
Speaker 3: that make less than a billion dollars of profit and
Speaker 3: are valued at five hundred billion dollars?
Speaker 2: Probably not right? What does it mean we should do?
Speaker 3: Boy, there's a lot of things out there, like you know,
Speaker 3: called natural resources, commodities, metals that nobody's interested because we
Speaker 3: live in the technology age. Well, guess what makes the
Speaker 3: technology run?
Speaker 2: Right? Power?
Speaker 3: Copper, silver, oil, right, all these things. Guess where we
Speaker 3: haven't invested any money in the last fifteen years? Copper, gold, silver, oil, metals, right,
Speaker 3: and so on top of it, these sectors are historically undervalued,
Speaker 3: so we just you have to invest, but you cannot
Speaker 3: sit there and you can't chase squirrels. Right when we've
Speaker 3: got governments printing this kind of money. You have to
Speaker 3: be averaging a return that is in excess of that
Speaker 3: inflation rate. And don't look at three and a half.
Speaker 3: It's probably more like five and a half six in reality. Right,
Speaker 3: And and but you can't do the square. You can't
Speaker 3: decide this week. I'm going to be a real estate
Speaker 3: entrepreneur and you need to start getting returns now. And
Speaker 3: notice I didn't say you have to call us, right,
Speaker 3: I said you can do it.
Speaker 2: On your own.
Speaker 3: But unless you're going to do it full time, put
Speaker 3: it in ETFs that are diversified. Just trust me as
Speaker 3: opposed to believing me forty years from now when you
Speaker 3: haven't made the right decision.
Speaker 1: And let's face it, it's kind of easy for Elon
Speaker 1: to say, hey, don't say for retirement. Right, He's never
Speaker 1: gonna have to worry about that, right, Yeah.
Speaker 3: And he And what he means, right is if you
Speaker 3: are worried about not having a head over you know,
Speaker 3: a roof over your head, if you were worried about
Speaker 3: not being able to do long term care and having
Speaker 3: a bunk in an alley, he's saying, don't worry about that.
Speaker 2: And I think he is correct.
Speaker 3: When we talk about retirement, I think we're we're looking
Speaker 3: a little bit.
Speaker 2: Further than three hots in a cop right, So.
Speaker 3: That if we want that because I want some trips
Speaker 3: from Muda, I want some good meals, right, I want
Speaker 3: to keep dining. Right.
Speaker 2: Yeah, we're gonna need to invest to do that.
Speaker 1: Yeah, okay, that makes all kinds of sense. So it
Speaker 1: sounds like this sounds like this age group is doing
Speaker 1: the right stuff.
Speaker 2: Then yeah, they.
Speaker 3: They are, but don't But again, I see them chasing
Speaker 3: a lot of individual stocks, and I see incredibly bad
Speaker 3: reasons for being in those stocks, and I would encourage
Speaker 3: them take a bit of humility, take a humble pill,
Speaker 3: admit you don't know it, and bet on the sure
Speaker 3: thing so you don't look with inflation doing what it's doing.
Speaker 3: If you have the discipline to sit in real assets,
Speaker 3: you will do tremendously.
Speaker 2: Well over the long period of time. And they have
Speaker 2: time to do that, yes, yes.
Speaker 3: But if they get caught squirrel investing, you know, squirrel
Speaker 3: over here, getting drug over here, getting drug over here,
Speaker 3: what happens is you spin your wheels. And I cannot
Speaker 3: tell you how many people I've seen do this, Right,
Speaker 3: in an effort to hit a home run.
Speaker 2: They go thirty years without getting on base.
Speaker 3: Right, get on base, get some singles and doubles, get
Speaker 3: some wins.
Speaker 2: As you do.
Speaker 3: You can take some shots over here and over there,
Speaker 3: but don't you know, get on base, just get on.
Speaker 2: It, and then you can still buy that house. Yeah, yes, yes,
Speaker 2: that's exactly right.
Speaker 1: So if they're investing wisely, then they can save for
Speaker 1: immediate stuff and retirement. And you are the best person
Speaker 1: to advise them on that. How can people contact you
Speaker 1: to learn more?
Speaker 2: That's so good, that's so good you are.
Speaker 3: Yeah, we we got to get we got to get
Speaker 3: here and do some like infomercials and stuff like that.
Speaker 3: If you car wait, there's more, right, but yeah, now
Speaker 3: you're pretty easy to find and go to Bullworkcapitalmanagement dot
Speaker 3: com or just look for video feed on YouTube and
Speaker 3: Know your Risk podcasts Know your Risk podcast dot com.
Speaker 2: Not hard to find.
Speaker 1: Thank you, Zach, Thanks.
Speaker 2: You, ladies. Investment advisory services offered through Track Financial LLC
Speaker 2: and SEC Registered investment advisor.
Speaker 3: The opinions expressed in this programmer for general informational purposes
Speaker 3: only and are not intended to provide specific advice or
Speaker 3: recommendations for any individual or on any specific security. Any
Speaker 3: references to performance of security so it thought to be
Speaker 3: materially accurate, and actual performance may different.
Speaker 2: Investments involve risk and or not guaranteed. Past performance doesn't
Speaker 2: guarantee future results. Track twenty four three zero eight