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Speaker 1: Hey, I'm sorry, Trump fans, I am, I'm really sorry.

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I'm just going to tell you that this is a

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very bad financial policy. In this EO, we'll talk about

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this with the help of Boer Capital Managements, and in

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fact the chief investment officer thereof Zach Abraham, and with

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God Almighty.

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Speaker 2: But Todd Herman show is one disapproved by big pharma

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technocrats in Tyrone sabran where from the high mountains of

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Free America, here's the Emerald City, exime.

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Speaker 3: Todd Herman.

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Speaker 4: Today is the day the Lord has made, and these

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are the times through which God has decided we should

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live its wise council day with Zach Abraham joining us

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from a palatial mansion far atop the planet Neptune.

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Speaker 3: Zach, welcome, man, It's good to have you.

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Speaker 5: Yeah, I tell you what. That's a heck of a communito. Man,

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this delon. I was with Dlon last night and it

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took quite a while to get into that tune. Man,

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it's a bit of a trip.

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Speaker 3: Yeah, I get it. It is.

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Speaker 1: You sent me a text. You don't often do this,

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but you seized the content of today. And then I

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went and looked at this. All I saw is to headline,

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Zach and people need to understand this. So here's the headline.

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The exclusive came from the Wallstreet Journal. Trump executive order

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to help open up four one CA's to private markets.

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US defined contribution plans held twelve point four trillion in

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assets at the end of twenty twenty four, so private

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equity into four one case. And you wrote me and

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said that this is just a terrible ideas.

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Speaker 5: It's worse than a terrible idea. It's out and right.

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It's out and out grift, okay, and it is grift

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of the worst kind because it is bailing out billionaires

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off the backs of working people. And this is complicated

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and tood, you know where I'm at. But I before

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I get started here, I hope hopefully the listeners know this.

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When I saw this, I was angered and deeply disappointed.

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This isn't me taking shots at Trump. This is me

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being really really bummed out and really disappointed in what

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I thought we were getting versus what I'm seeing in

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the passing of this bill. So excuse me. This executive order, right,

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it's an executive order, which to me is even even worse.

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And the reason it's worse is because this is going

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to be a disaster, and it's and and and as

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the people that support a politician, right, we're the ones

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that are gonna have to answer to it. The folks

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are going to be the ones that have to pay

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for it. But let me let me just set this

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SCE in a little bit. So first of all, pride equity,

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when we hear that term, all it means is you're

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invested in companies that are not publicly traded, so you

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don't own stock, you're actually owned well stock. Owning stock

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is owning a piece of a company, but owning a

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private owning private equity. Let's say you got a buddy

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that's got a successful coming business and he needs some

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cash to expand you go give him, you know, two

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hundred and fifty grand for ten percent of this company.

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You own private equity. Okay, So private equity has always

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fallen under the accredited investor umbrella, which means you had

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to have a million dollar net worth or more to

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invest in it. The reason why that exists, I am

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convinced to this day that it is simply a gate

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to give the wealthy people a shot at things and

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the not and regular folks not. Okay, so that and

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that run has been along around a long time. That

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is on anybody else's should guts, not a prop fault

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or anything like that. Okay, So here's where it gets

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really nasty private equity because it isn't stock. It isn't

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valued the same way. See, if we want to look

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at what a stock is worth, we just look at

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the stock quote that day, right, you stop on the

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internet stock quote b neriness. Well, private equity doesn't work

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that way. It's not selling, buying, being buying and bought

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and sold on an exchange. So how do you value it? Right? Well,

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the way that you value it, and the really only

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way you can value it is you either value it

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based on a sale price, right, meaning you sold it

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for X amount of money that's what it's worth, or

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you value it based on what you paid for it with,

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you know, and if you like, let's say you've got

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a company that you bought for X and the revenue

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of that company had grown by an average of fifteen percent,

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and you thought that justified you pushing the price of

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the company up ten percent for each year that you

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know the revenue increased by fifteen percent. And there's your

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formula and that's that's how you define it. Right. Well,

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for a lot of these new companies, they are not frosting, right,

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They're spending so much so you can't really value them

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on a financial basis. So the way they value them,

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which makes sense, you value them on the fundraising amount.

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And I know you know this, Todd, You've been through

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the process. But just to explain it to listeners, So

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like when Facebook was a billion dollars, was worth a

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billion dollars and they needed money to expand they did

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it via private equity or adventure capital, and they went

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and rounded up let's say, fifty million dollars based on

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a one billion dollar valuation. Okay, Well, the minute they

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do that, the guy that already owns a chunk of

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Facebook and he bought it a five hundred million dollar valuation,

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he goes back to his book and goes, oh, okay,

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well now it's worth a billion dollars, right, because we

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just raised money at a billion. Yeah, and that's fair. Okay,

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here's the issue. First of all, there was a run

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into private equity like anything we have seen ever in history.

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Over the last twelve years. You just have massive amounts

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of money for all kinds of reasons, a lot of

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them stupid. It was the place to be right. Well,

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here's the thing. There aren't as many publicly traded companies.

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There aren't as many privately held companies out there that

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are looking for It's tougher to find private equity type

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situations than it is public equity. There's just more public

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equity company easier to invest in. So when all this

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money starts pouring into private equity, remember these fund managers

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have to put that money somewhere. They can't charge your fee. Right,

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So what happened? You kept you kept going down the

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quality chart, right, You kept financing shadier and shadier companies,

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and all you had to do to show that they

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were going up in value was to raise some more

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money at a higher price, which was easy to do

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because money kept pouring into the space and these fund

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managers had nowhere to put it, so they had to

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pay higher prices. Well, all of a sudden, when interest

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rates go up in twenty twenty two and a lot

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of these companies are reliant on debt financing or increase

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money flowing into private equity, all of a sudden, there

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aren't a lot of fundraises going on. Right, there weren't

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a lot of new raises going on. And one of

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the reasons there weren't new raises going on is because

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a lot of these private equity companies weren't increasing their revenue.

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They were going backwards, and they don't want to do

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a raise at a lower price. We call that a

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down round, yep right, nobody wants to do that. So

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what did they start doing. They started going, Hey, they

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went back to their investors and they go, hey, we're

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going to have to do a down round. Don't do it.

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Deb no, man, don't do that. Don't do that. Oh yeah,

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and we've fallen way off. The backdrop has changed, so

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this down round is going to have to be done

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at fifty percent less. And the investors are going, no, no, no,

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we don't want you to do that. How about we

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loan you money because if I loan if I loan

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you money, I don't have to I don't have to

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change my mark on the value of the company.

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Speaker 1: Okay, So let's let's pause there, because this is about

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to take a turn that is likely with this EO

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to affect a bunch of people in this country, and

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they don't even know the train that's coming down the tunnel.

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Speaker 3: Let them.

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Speaker 1: So, uh, let's let's pause in that for a second.

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And here's Zach talking about debts and banking, et cetera.

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If you're a smaller, medium sized business owner, I guarantee

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you've got a bank, right, well, unless you're dealing the drugs.

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In that case, maybe you don't get a bank, like

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I don't know you on your fentanyl business. You guys

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bank and yet or don't answer that. No securities exchange commussion.

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Speaker 5: No, No, they're they're all they're all fine with that

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type of business. Okay, illegal, it's illegal enough.

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Speaker 1: Okay, right, yeah, so you know we launder our stuff

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in a way, but no I don't.

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Speaker 3: That's not real.

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Speaker 1: But your bank probably didn't tell you, and and god

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bless your accountant and your business lawyer, they probably didn't

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tell you. You know, that corporation we set up for you,

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that's not real. Yeah, it's it's it's registered, it says corp.

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But it's based upon your personal assets and your personal credit.

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That's not how the big boys play. So if you

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have something, say a landscaping business, and let's say a

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piece of equipment starts on fire and it burns someone's yard,

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they sue you. They don't have to sue your business.

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In fact, if you're not with corporate credit, they end

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up suing you because you have the assets. The business

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is not because you and the business are one visible.

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Will fix this and seven easy steps. They'll build that firewall.

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That's the that's protecting your home, your fur, one K,

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your retirement account.

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Speaker 3: But then something else. Now your business could be fundable.

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Speaker 1: So if you want to get in on the swindle

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of private equity and having people buy in your note,

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your property's probably very very honest. It's fundable, and it

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grows more quickly, it's more useful. Well, they'll take care

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of it all super easy. Website go bisible with a

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z go bisible dot com. They'll give you a free

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NAW obligation consultation. When this all makes sense to you,

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and I promise it will commits to the program and

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get protected gobisible dot com.

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Speaker 5: All right.

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Speaker 1: So when we left Zach Abraham last he and the

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girls from Three's company.

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Speaker 2: Right.

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Speaker 3: So this train that's coming down in.

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Speaker 1: People's faces is private equity has arrived at this point

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where there are these down rounds, meaning that the company

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has reduced in revenue performance. But the current investors they

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don't want to downround because that dilutes their ownership. So

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now that's messing with their paper profits. They don't want

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to go back to their partners and say down round.

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So Harris, what we'll do. We'll do a shell game.

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We'll loan you the money and I'm guessing probably in

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convertible notes that they don't have to convert. We could

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just keep it alone. Therefore it's just alone. There's no

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down rounds. So now we've gotten down this decreasing quality

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cycle and putting money into more and more shady companies,

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less and less honest companies, and all of a sudden,

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private equity is going to be in for one case

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and it's going to get jacked and pumped and Blackrock

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and everyone else as Vanguard, they're going to push this

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so hard. Finally you can play the game like the

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big boys.

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Speaker 5: Right, we're democratizing us. Got it?

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Speaker 3: Got it?

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Speaker 5: So if we look around, so this industry has blown up,

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like I said, over the last twelve fifteen years, private

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equity has just exploded. Okay, So what you've gotten now

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is you've got a bunch of these multi billionaires and

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the multi billion dollar To give you an idea, Harvard

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is fifty percent of their endowment is in this crap, okay,

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and they're drowning in it, and they can't get out

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of it because none of these pe firms will take right.

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They won't sell it to each other, right because if

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they do that, to start the dominoes selling. And remember

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so on average, and these are some very good estimates.

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I know people that run private equity funds. This is

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not me shooting from the other. I'd say, on average,

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the average private equity fund is down forty to sixty

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from where it was four years ago, okay, And that's

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on average. There's some doing worse, okay, But you're not

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seeing any of those write downs hit their books. Why

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because they don't need to because they're not transacting. The

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problem is you can only do that for so long.

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So now you've got this issue where you've got all

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these billionaires. And keep in mind, Trump's son in law

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runs a private equity fund with a couple of billion

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dollars in it, yep, so and private equity that's that's

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his deal. So they don't want to take it right down.

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What they've got to figure out a way to get

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these things off their books without taking a hit. Well,

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what's the only way to do that. The only way

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to do that is to bundle it into a fund

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and sell it to a bunch of unsuspecting people out

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there in the public that don't realize these things aren't

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mark correctly, and they have through this executive action or

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executive order. It literally makes four oh one k plans

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the exit liquidity for all of these private equity billionaires.

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And it is a crime. And this is something that

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we were warning about when Blackrock is Trump is going

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along with Blackrock here. Larry think has been pushing this

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harder than anybody for the last year and a half

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because BlackRock's in the same situation. They own a bunch

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of this toxic garbage and they can't sell it to anybody.

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So who are you going to sell it to? John

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Q Public Baby, the folks are going to take a

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bath again. And there's no way he does not understand

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this dynamic. Like I said, his son runs, his son

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in law runs a multi billion dollar private equity fund.

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He's plugged into these guys. Jd Vance worked for a

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private equity fund. It's just I'm so disappointed. I am

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so horrified and ticked off. Man, it's just a disgrace.

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Speaker 1: I'm trying to find the sunshine in this so I

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can come back and say, yeah, but trust the plan

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is well. I even had great news to talk about

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financially today. This is a gut punch man, because is

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talking a second about what can happen here. But let

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me also mention this that Zach is putting on a

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free live webinar and it's coming up the twenty fourth

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of this month, and it is about the state of

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our nation's economy, and it is about risk management. It

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is about well things like this. I mean, I gotta

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believe this is going to be part of your halftime webinar.

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Speaker 3: I was looking at our country like a sports season.

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Are we doing? I gotta believe this is going to

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play a big role in that. This is free.

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Speaker 1: You have to register to attend. Go to Know Your

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Risk Podcast dot Com that's k and OW Know Your

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Risk Podcast dot Com.

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Speaker 3: And when you do that, you'll be go and.

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Speaker 1: See Zach talk about this and then ask her questions

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and how they do this all Know Your Riskpodcast dot com.

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Investment visors surface off their Truck Financial llcn SEC Rich

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Investment Advisor. Investments involve risk, are not guaranteed past performances,

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and guarantee future results. Truck twenty five's two five two. Okay,

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let me see if I understand this. So they're they're

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taking their pig, they're slapping lipstick on it, and they're

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saying it's a beautiful, beautiful, beautiful lady and or a

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you know, great looking gentlemen. They're going to pitch this

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to the public as democratizing. Finally you can have the

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same wealth, the same access to wealth that the Hollywood

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stars have, and and Nancy Policy stockpicker, et cetera.

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Speaker 3: And in reality, these things are loaded.

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Speaker 1: Up with false values, propped up by debt to make

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sure that these billionaires don't have to write down the

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value of their investments, so on paper they never lose money.

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When these start getting loaded up into four one ks,

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suddenly there's action. People are buying these things. Therefore they

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can justify increases, even increases in value. Those investors are

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going to step in and say, pay us back our

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debt right now at a multiple, get us out of

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the debt, and then they start unloading their shares as

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fast as possible, starting with the big stinkers.

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Speaker 5: Yeah. Well, and first of all, they're going to sell

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a lot. So the way it's going to mechanically work

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is they're going to sell the private business into the

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ETF or into the fund. And the price they're going

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to sell it at is most likely what the price

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they last raised money at, right, because that's the price,

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that's the price. Well, you guys haven't raised any money

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in the last three years. Well, it's because we haven't

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needed it. Well, if you haven't needed it, why have

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you taken out seven hundred fifty million in debt? Right,

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So they're going to sell it, effectively at a fraudulent

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price right into the fund. So at that moment they

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go like this, here's how you know the fix is in,

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and this is how you should know that I that

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you can trust what I'm saying and it's gospel. Do

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you think it's odd the timing regarding allowing non accredited

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investors to invest in private equity comes at the time

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where the entire private equity industry is more underwater than

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it's ever been. Do you think that's a coincidence?

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Speaker 3: Yeah?

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Speaker 5: Right, all of a sudden, you're going to let the

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small guy in. Why is that? It's because you're looking

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for exit liquidity, you're looking for bag holders. You got

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to dump your junk on somebody else because being worth

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multi billions isn't enough for you. You want more and

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it never stops, and you can't take a loss, and

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it's so much, so you're going to break a guy

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trying to raise his family on ninety grand a year

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and faithfully investing in his four oh one k because

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you don't want to take a write down.

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Speaker 1: Okay, So let's now talk about the fund managers like

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and I'm not trying to trash a specific company, but

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let's take a Fidelity for instance. Okay, or let's take

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a I don't know what's another fund manager like that.

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Speaker 5: I mean, you can talk old Men black Rock, yeah,

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all the big guys.

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Speaker 3: Well, but I'm thinking Goldman, black Rock.

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Speaker 1: Most of like people who watch or listen to the show,

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they're not probably with those guys.

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Speaker 5: But oh yeah, Fidelity, yeah, amor Prize.

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Speaker 1: All right, So they're not going to go and present

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individual companies. I mean, Larry thinksn't gonna be going. Okay, hey, listen,

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I want to tell you about a chain of Oh,

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I don't know housebuilders we own and this is this

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is a big house building company in the Midwest, and

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here's their books, and let's examine this. And this is

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the debt to income ratio. And they're not going to

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do that. They're going to bundle this stuff all up, right.

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Speaker 5: So yeah, it's a different version of what they did

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in eight oh nine with plateralized debt obligations.

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Speaker 1: Okay, so they took the housing stock, they took the

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junk loans, they took all that stuff, the junk. No

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one can pay this back. These people are ten times underwater.

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They package this up and repackage and de derivatives of derivatives.

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Then they come and say, we're giving you the package

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of all package. So now this comes in the Blackrock

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Private Equity fund, the biggest, most successful investment company in

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the history of the world.

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Speaker 3: We're bringing you the Blackrock funds.

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Speaker 1: And so they go out to the fund managers, Zach,

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the people who run Fidelity know this. So what do

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they get out of the deal when they start pimping

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this stuff into people's four one case.

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Speaker 5: You know what, I'd have to look at that. I mean,

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I'm sure there's some distribution agreements, you know, fees. But

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I so it's kind of weird though, because when you

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get into the fidelity and the retail side of it,

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a lot of the people that work clear and and

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I know a lot of these folks and this isn't

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they just have a different view of these things. And unfortunately,

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I think a lot of the people out of place

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like Fidelity are not aware of this problem. Okay, this

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is kind of a this is kind of a wonkish problem. Like,

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for instance, I would be surprised, you know, you turn

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on Fox News and they're probably going to position this

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is Oh, it's a win for democracy. Trump's given him,

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you know, the small guy, the access to the same

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game the big guy plays, and you're like, no, no,

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that's not what's going on here, right, I mean he is,

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but not for those reasons. So I you know, and

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a lot of these people just don't get it. This

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is pretty wonkish, and I've kind of given kind of

381
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dove down the rabbit hole a little bit on this,

382
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but I really wanted people to understand this isn't my opinion,

383
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This isn't a hot take, this isn't a shot at Trump.

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This is me lamenting what's really going on here, and

385
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knowing personally the scramble for liquidity that's happening behind the

386
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scenes with these private acuity companies and watching this happen,

387
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and it's just like you're like, this is so, this

388
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is so disgusting. This is so disgusting. And there was

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talk about Biden doing it to his administration's kind of

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the even backed away from this.

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Speaker 3: Yeah, but then again they forgot they were running a country.

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Speaker 5: Well yeah, yeah, yeah, yeah, there is that. I thought

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it was a dairy queen.

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Speaker 1: So I want to present a scenario maybe under which

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this would have been okay in a second. So I'm

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going to do this in a movie form in a second.

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Speaker 3: Here's act.

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Speaker 1: Let me let me do this in just a second.

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Speaking of movies. In fact, you dig this there is

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from Angel Studios. They're put they put out a new series.

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It's called Testament. Uh so they've taken the Book of

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00:22:01,319 --> 00:22:03,839
Acts and they've moved it into the modern era. So

403
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you have Paul and James and Philip and Steven and

404
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I mean there's all the Acts is all about what

405
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they did they bring it to this Mary because I

406
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mean they get to have dramatical license here. I don't

407
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think Mary just went away, or maybe the Mary's and

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they're in the modern world sharing the gospel after the

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Lord Jesus ascended to heaven and came back and ascended

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to heaven, after he was resurrected and spoke and met

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everybody and ascended to heaven. So it's in a surveillance state,

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00:22:32,680 --> 00:22:34,759
it's in a censorship state. It's in a state with

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hostility truth. In other words, does that sound familiar? So

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Angel didn't come along and make a fun feel good

415
00:22:42,200 --> 00:22:45,880
The Christian girl gets the beautiful outcome she needs because

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she's sang the right gospel song and that old krusty preacher, gosh,

417
00:22:49,559 --> 00:22:52,119
she knew what he was talking about. And the parents

418
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got reunited after they saw her little girl. This is

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a real questioning faith, questioning could you do this for Jesus?

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Speaker 5: Movie?

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00:23:01,640 --> 00:23:03,079
Speaker 3: Would you be willing to pay the cost?

422
00:23:04,160 --> 00:23:07,960
Speaker 1: And it is not soft soap, So join in on

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00:23:08,000 --> 00:23:11,359
the Angel Guild help us fund movies like this. Here's

424
00:23:11,400 --> 00:23:13,480
what you do. Join the injurl Guild at angel dot com.

425
00:23:13,480 --> 00:23:16,680
Slash Todd Premium members receive two free tickets to every

426
00:23:16,720 --> 00:23:19,720
theatrical release we voked on the movies they release, we

427
00:23:19,799 --> 00:23:22,240
get to fund things like this. That's angel dot com

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00:23:22,319 --> 00:23:26,160
slash Todd to stream Testament right now and support bold

429
00:23:26,160 --> 00:23:29,240
faith driven content at angel dot com. Slash Todd and

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00:23:29,759 --> 00:23:31,279
zach I said, I would do this movie for him

431
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if there had been this massive, massive, come to Jesus

432
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moment in private equity where these guys were forced to

433
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reflect these losses on their books. They were forced to

434
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recognize that these companies had these bad revenue performances. You

435
00:23:49,680 --> 00:23:52,119
have to write down and you have to adjust your

436
00:23:52,119 --> 00:23:55,079
debts and all that. So the books were rationalized. So

437
00:23:55,200 --> 00:23:57,359
these things are at a low and these guys are going,

438
00:23:57,440 --> 00:23:58,319
what are we gonna do?

439
00:24:00,200 --> 00:24:03,920
Speaker 3: Now? Would that make you happier if.

440
00:24:03,759 --> 00:24:06,519
Speaker 1: Trump would come back with an EO allowing people to

441
00:24:06,559 --> 00:24:10,680
buy this when the stocks were or the company prices

442
00:24:10,680 --> 00:24:14,759
were rational or even low, or would you still okay?

443
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So then you'd be saying this is a good idea.

444
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Speaker 5: Yes, yes, because yeah, because I think people I think

445
00:24:20,839 --> 00:24:23,960
the vast majority of the credited investor rules are ridiculous.

446
00:24:24,000 --> 00:24:26,920
It's a concret club rule, okay, and it's and it's

447
00:24:26,960 --> 00:24:29,440
it's garbage. So I think people should have access to this.

448
00:24:30,359 --> 00:24:34,240
I think it's criminal that when you give them access

449
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to it. And here's here's the other part about it.

450
00:24:37,960 --> 00:24:42,400
Because it's private equity by definition, it's more opaque, less

451
00:24:42,400 --> 00:24:46,720
people understand it, less people get it. Right, most most people,

452
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most you know, even our investors, it will work, our clients.

453
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Most most people, despite what they'll tell you, don't really

454
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even understand how public equities are valued, let alone private ones. Right.

455
00:24:58,960 --> 00:25:03,000
So it's like you said, the timing of it is despicable,

456
00:25:03,240 --> 00:25:07,720
but especially interceptional pink market, because what are the chances

457
00:25:07,759 --> 00:25:10,079
that the average guy, you know, he doesn't even have

458
00:25:10,160 --> 00:25:12,440
the ability to do that, right, These are privately held

459
00:25:12,480 --> 00:25:17,119
companies that haven't been followed publicly, and so he wants

460
00:25:17,160 --> 00:25:19,079
to go dig through the fund and do research on

461
00:25:19,119 --> 00:25:22,480
the companies. It's really hard to do. Yeah, you don't

462
00:25:22,480 --> 00:25:27,319
have publicly filed documents. So it's I think that's the

463
00:25:27,359 --> 00:25:29,920
best way to say it, Todd, and I hadn't thought

464
00:25:29,920 --> 00:25:33,279
about it at least in that way. The timing of

465
00:25:33,319 --> 00:25:34,359
it is the sin.

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Speaker 1: Okay, I was trying to get at because that also

467
00:25:37,960 --> 00:25:41,359
though proves I think your point. The timing of it's

468
00:25:41,440 --> 00:25:45,160
the sin. But these guys wouldn't be doing that. If

469
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they had been forced to write down, if they'd been

470
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forced to reflect the real prices of these companies, they

471
00:25:50,559 --> 00:25:53,960
would have eaten the bullets, you know, taking the bullets.

472
00:25:53,400 --> 00:25:55,920
They would have done that and gone back and take

473
00:25:55,960 --> 00:25:59,720
the lumps from their LPs, their limited partners gotten the

474
00:25:59,759 --> 00:26:02,039
brow beatings. You guys are gonna make this up to us,

475
00:26:02,160 --> 00:26:04,640
we don't lose money, and tell me if I'm wrong.

476
00:26:04,920 --> 00:26:06,640
Speaker 3: But that's sort of the address to these LPs. We

477
00:26:06,880 --> 00:26:08,119
don't lose money.

478
00:26:09,160 --> 00:26:11,680
Speaker 1: You are gonna give us a make good, and that

479
00:26:11,720 --> 00:26:15,519
make good it's going to be something. And well then

480
00:26:15,279 --> 00:26:18,759
then they wouldn't be then they wouldn't be wanting us

481
00:26:18,759 --> 00:26:19,200
to buy this.

482
00:26:20,119 --> 00:26:24,480
Speaker 5: No, And the reason, like I said, Harvard's and endowment

483
00:26:24,599 --> 00:26:28,279
is fifty percent into this, right. And the other sin

484
00:26:28,400 --> 00:26:32,839
here is we're not gonna let the fact that fifty

485
00:26:32,920 --> 00:26:37,400
percent of any serious portfolio is in private equity is

486
00:26:37,599 --> 00:26:42,319
a is a joke. It is a complete failure of

487
00:26:42,400 --> 00:26:45,799
risk management. But it was purely greed that drove them

488
00:26:45,839 --> 00:26:48,759
into that position. And that's the other part that ticks

489
00:26:48,799 --> 00:26:53,279
me off. Wait a second, you're not only are we

490
00:26:53,400 --> 00:26:55,640
going to bail these guys out with public funds, but

491
00:26:55,680 --> 00:26:57,640
you're gonna do it at the moment, they were about

492
00:26:57,680 --> 00:27:00,319
to burn, and they were about to burn because of

493
00:27:00,359 --> 00:27:03,000
their own pride and their own greed and their own hubris.

494
00:27:03,319 --> 00:27:07,279
Why are we doing this? And they were about to burn,

495
00:27:07,640 --> 00:27:10,559
And here's the reason they were all over levered in it.

496
00:27:11,160 --> 00:27:14,039
There was this narrative that went around and we've talked

497
00:27:14,079 --> 00:27:15,839
about this a lot on our show, and we said

498
00:27:15,880 --> 00:27:17,559
that you know this was going to happen because this

499
00:27:17,640 --> 00:27:20,359
is a joke. The way they were all pushing private equity,

500
00:27:20,400 --> 00:27:22,480
and the reason they all got so levered up into

501
00:27:22,480 --> 00:27:27,400
private equity was the mantra was stock market returns with

502
00:27:27,559 --> 00:27:33,920
bond volatility. Okay, that's insanity. You know what that is.

503
00:27:34,119 --> 00:27:39,359
Speaker 1: That's that's that's huge squat power without leg day.

504
00:27:40,559 --> 00:27:44,559
Speaker 5: That's one hundred correct. And the reason that's so funny

505
00:27:44,559 --> 00:27:45,920
for people to over there go, what do you mean,

506
00:27:46,160 --> 00:27:50,119
the guys, The reason you get a higher return from

507
00:27:50,119 --> 00:27:55,119
the stock market is the volatility. Okay, that's the way

508
00:27:55,160 --> 00:27:59,599
it works. That's insanity. And if you don't have that volatility,

509
00:27:59,599 --> 00:28:02,279
which means things going up and down, what that tells

510
00:28:02,319 --> 00:28:04,880
you is none of these companies revenue streams are moving

511
00:28:04,960 --> 00:28:07,079
up and down fast enough. Well, if none of their

512
00:28:07,079 --> 00:28:09,680
revenue streams are going up and down fast enough, how

513
00:28:09,720 --> 00:28:12,920
are they providing stock market like returns? It's nuts? Right,

514
00:28:13,359 --> 00:28:17,400
But these people, and I'll just tell you on paper,

515
00:28:17,440 --> 00:28:20,319
they look super educated. But anybody that loads up an

516
00:28:20,359 --> 00:28:23,920
endowment fifty percent in ill liquid stuff that's improperly marked.

517
00:28:24,160 --> 00:28:27,119
We're not talking about Warren Buffetts here right now. Right,

518
00:28:27,880 --> 00:28:32,319
So these greedy, proud, arrogant people load up on all

519
00:28:32,359 --> 00:28:35,359
of this garbage that is illiquid that they can't unload on.

520
00:28:35,799 --> 00:28:39,400
And when they get pinched, all the billionaires circle together,

521
00:28:39,440 --> 00:28:42,079
and they're usually pretty good at that, right, all circle

522
00:28:42,119 --> 00:28:44,519
in the wagons. How do we get out of this mess?

523
00:28:44,759 --> 00:28:48,440
Let's unload it onto the public. And Harvard's going to

524
00:28:48,519 --> 00:28:50,480
do it. All the endowments are going to do it.

525
00:28:50,480 --> 00:28:54,039
It's billionaires exiting out of ill liquid positions on the

526
00:28:54,079 --> 00:28:56,880
backs of the public. And it's freaking disgusting.

527
00:28:57,000 --> 00:28:58,559
Speaker 3: Yeah, and they know what they're doing.

528
00:28:58,720 --> 00:29:01,319
Speaker 1: And I want to ask a question, is a second, Zach,

529
00:29:01,359 --> 00:29:03,920
how people protect themselves from this? Let me share this

530
00:29:03,960 --> 00:29:06,799
with you real quick, because we're talking about private.

531
00:29:06,440 --> 00:29:09,799
Speaker 3: Companies that do bad things. My friends that renew healthcare.

532
00:29:10,000 --> 00:29:12,000
Zach and I. Zach went to Mexico with me. There

533
00:29:12,000 --> 00:29:14,400
a port of our Arta. Remember Mike we met. He

534
00:29:14,400 --> 00:29:15,759
was a marine for twenty two years.

535
00:29:15,960 --> 00:29:17,480
Speaker 5: Yeah, do this right?

536
00:29:17,519 --> 00:29:21,079
Speaker 1: Oh yes, right, yes, it's clinidibre. And if there's someone

537
00:29:21,119 --> 00:29:25,200
who looks more like a marine, I don't. I don't

538
00:29:25,359 --> 00:29:27,759
like remember what he wore his semper fied hat were like,

539
00:29:27,920 --> 00:29:29,599
you don't everybody knows.

540
00:29:29,839 --> 00:29:32,319
Speaker 5: I mean he's like, oh yeah, he's like a walking recruiting.

541
00:29:31,880 --> 00:29:34,319
Speaker 3: Poster right right, and he's a great, great guy.

542
00:29:34,400 --> 00:29:36,720
Speaker 1: So he sent me this updates he said, Hey, Todda

543
00:29:36,759 --> 00:29:40,599
sent this to Kathleen Renew. She's asking about my percentage

544
00:29:40,599 --> 00:29:42,200
and pain reduction. Feel free to shore if.

545
00:29:42,079 --> 00:29:42,480
Speaker 3: You'd like to.

546
00:29:43,359 --> 00:29:46,839
Speaker 1: They follow up with patients and you've probably got these emails. Zach,

547
00:29:46,880 --> 00:29:49,440
I know I get these, uh, he wrote back Kathleen. Overall,

548
00:29:49,480 --> 00:29:51,359
it feel fantastic for my knees. It depends on what

549
00:29:51,400 --> 00:29:53,640
I'm doing going up and downstairs. I would say one

550
00:29:53,680 --> 00:29:56,240
hundred percent reduction in pain. This is what two months ago.

551
00:29:57,160 --> 00:29:59,640
If that if I run, I still feel some discomfort

552
00:29:59,640 --> 00:30:01,880
in both during the start of the run, about the

553
00:30:01,920 --> 00:30:04,319
tenth of first tenth of a mile for the left knee.

554
00:30:04,319 --> 00:30:06,119
I'd say I'm ninety percent reduction in pain for the

555
00:30:06,200 --> 00:30:07,960
right kneed, the one with the most damaged, seventy five

556
00:30:07,960 --> 00:30:10,920
to eighty percent reduction in pain already. I've not attempted

557
00:30:11,000 --> 00:30:13,000
running over three miles yet, I'm keeping it between two

558
00:30:13,000 --> 00:30:14,839
point twenty five and two point five. I was shocked

559
00:30:14,839 --> 00:30:17,119
to find out that I've taken a full minute off

560
00:30:17,160 --> 00:30:19,559
my per mile during my run. I'm also happy to

561
00:30:19,559 --> 00:30:21,000
say I do not spend the rest of my life

562
00:30:21,039 --> 00:30:24,279
in limping like I used to after I'd run. I

563
00:30:24,319 --> 00:30:26,359
don't even notice my knees anymore after the run is done.

564
00:30:26,400 --> 00:30:28,960
My shoulder's taking a bit longer, not a surprise. With

565
00:30:29,000 --> 00:30:31,480
two terrors to heal, I'm still taking it easy when

566
00:30:31,519 --> 00:30:33,279
doing up her body workouts for my shoulder, I would

567
00:30:33,279 --> 00:30:35,880
say I'm a run seventy five percent pain reduction. Just

568
00:30:36,000 --> 00:30:38,640
so you know, he hasn't even gotten into the tissue

569
00:30:38,680 --> 00:30:44,480
building stage yet, right still in the inflammation reduction stage.

570
00:30:44,519 --> 00:30:50,559
This guys don't listen to American medicine. These stem cells

571
00:30:50,759 --> 00:30:55,160
from umbilical cords, taken all of a five minute walk

572
00:30:55,160 --> 00:30:57,960
from an elite hospital, put into a lab that is

573
00:30:58,000 --> 00:31:01,720
one step below a bio containment lab and then their

574
00:31:01,759 --> 00:31:02,559
culture from there.

575
00:31:02,720 --> 00:31:03,400
Speaker 3: This is where to go.

576
00:31:03,440 --> 00:31:05,799
Speaker 1: It's renew r E n U E dot healthcare. Get

577
00:31:05,839 --> 00:31:08,519
out of pain. This stuff is not done up here.

578
00:31:08,640 --> 00:31:10,839
It's not even close. They're called autographs, and I'll talk

579
00:31:10,880 --> 00:31:12,680
all day long about the difference. It's renew R E

580
00:31:12,799 --> 00:31:16,319
NU E dot healthcare. Protect yourself from American medical system.

581
00:31:16,359 --> 00:31:20,599
So Zach, how do people protect themselves? I mean, hair,

582
00:31:20,839 --> 00:31:24,359
I got a crazy idea, Know Your Risk podcast dot com.

583
00:31:25,039 --> 00:31:27,319
Speaker 3: Right, That's that's that's one crazy idea.

584
00:31:27,440 --> 00:31:30,960
Speaker 1: I know this cat named Abraham who is speaking out

585
00:31:31,000 --> 00:31:32,359
about this, but I don't want to have to do

586
00:31:32,400 --> 00:31:32,880
this disclaimer.

587
00:31:32,920 --> 00:31:34,240
Speaker 3: Again, that's just a crazy idea.

588
00:31:35,160 --> 00:31:39,079
Speaker 1: But if people insanely choose not to do that, and

589
00:31:39,519 --> 00:31:42,640
number one, they're communists, we could admit that. But number two,

590
00:31:42,640 --> 00:31:44,559
if they don't want to admit that, how could an

591
00:31:44,599 --> 00:31:47,200
individual investor even protect themselves from them If they're in

592
00:31:47,200 --> 00:31:49,599
a four H three B four one K.

593
00:31:49,839 --> 00:31:51,039
Speaker 3: How can they protect.

594
00:31:50,720 --> 00:31:53,359
Speaker 1: Themselves from fidelity poisoning their retirement with this stuff?

595
00:31:54,440 --> 00:31:59,359
Speaker 5: Well, it's still a couple of things. And again I

596
00:31:59,400 --> 00:32:02,119
feel really strongly about this, So it's not meant as

597
00:32:02,119 --> 00:32:05,559
a plug, but just it is what it is. If

598
00:32:06,000 --> 00:32:08,440
if you're over the age of fifty nine and a half,

599
00:32:08,480 --> 00:32:10,759
even if you're still working contributing to a four oh

600
00:32:10,799 --> 00:32:13,240
one K, you can move the money in your four

601
00:32:13,279 --> 00:32:15,480
o one K. Okay, you can move it to an

602
00:32:15,519 --> 00:32:18,720
outside place if you want to do that or you

603
00:32:18,759 --> 00:32:20,720
want help with that. We do it all the time

604
00:32:20,799 --> 00:32:23,079
and you don't. It doesn't mean you have to quit

605
00:32:23,119 --> 00:32:25,279
contributing to your four oh one K. You keep contributing

606
00:32:25,359 --> 00:32:27,400
like you used to. But at fifty nine and a half,

607
00:32:27,400 --> 00:32:30,279
you're able to do a balance chansfer. It's non taxable,

608
00:32:30,440 --> 00:32:32,640
cost you nothing. We do it all the time. Okay,

609
00:32:33,160 --> 00:32:35,039
that's and we're not the only people that can do

610
00:32:35,079 --> 00:32:38,599
it in any firm can obviously I think that you know,

611
00:32:39,279 --> 00:32:43,920
you'd be better offcoming to us. But that's one way

612
00:32:44,759 --> 00:32:47,240
if you are stuck inside the fund and you don't

613
00:32:47,240 --> 00:32:49,079
have any way. You know, if you're under the age

614
00:32:49,119 --> 00:32:52,799
of fifty nine and a half, you need to have

615
00:32:52,920 --> 00:32:56,400
a four oh one K consultation with somebody, which we

616
00:32:56,480 --> 00:32:59,079
do with all of our clients, and they're always surprised

617
00:32:59,119 --> 00:33:01,720
that we do that and go, well, guys, if I'm

618
00:33:01,720 --> 00:33:03,920
managing two hundred and fifty thousand dollars of your money,

619
00:33:03,960 --> 00:33:05,680
and you've got one million in your four oh one K,

620
00:33:06,519 --> 00:33:08,240
and we don't take care of your four oh one K.

621
00:33:08,359 --> 00:33:09,759
I could hit it out of the park with your

622
00:33:09,799 --> 00:33:11,720
two hundred and fifty thousand dollars and it's not really

623
00:33:11,759 --> 00:33:14,640
going to matter, right, So we do what we call

624
00:33:14,680 --> 00:33:16,799
three four oh one K counseling. You can do that.

625
00:33:17,279 --> 00:33:19,960
The other thing you can do is if if that's

626
00:33:20,000 --> 00:33:22,559
not an option or whatever, you go through your fund

627
00:33:22,599 --> 00:33:25,599
and make absolutely sure that you're not invested in any

628
00:33:25,599 --> 00:33:28,039
of this. But the problem with this is that I

629
00:33:28,079 --> 00:33:32,240
think that this is going to have bigger implications. I

630
00:33:32,279 --> 00:33:34,960
think it's going to affect the overall economy. I think

631
00:33:35,000 --> 00:33:39,119
it's going to affect the overall stock market. So one

632
00:33:39,160 --> 00:33:41,720
of the issues you've got, Remember how you know we're

633
00:33:41,720 --> 00:33:45,359
having a really good unit, right, We're our main fund

634
00:33:45,400 --> 00:33:47,319
that I run, our value fund. I believe we're up

635
00:33:47,759 --> 00:33:49,880
nineteen percent on the ear stock markets, up five or

636
00:33:49,880 --> 00:33:52,839
six something like that. One of the and this is

637
00:33:52,839 --> 00:33:54,799
another problem with the four oh one K funds. One

638
00:33:54,799 --> 00:33:57,799
of the biggest drivers of that has been precious metals

639
00:33:58,200 --> 00:34:03,160
for US international stocks once again a stuff that you

640
00:34:03,240 --> 00:34:05,960
can't get inside of a four o one k, right,

641
00:34:06,400 --> 00:34:10,800
And so I think that four to one k's particularly

642
00:34:10,880 --> 00:34:14,239
are going to be in trouble because the only thing

643
00:34:14,320 --> 00:34:17,239
they really have access to are US assets, which which

644
00:34:17,239 --> 00:34:19,679
are the most overpriced assets in the world, and this

645
00:34:19,760 --> 00:34:23,280
private equity thing coming down the pipe. People need a

646
00:34:23,320 --> 00:34:27,400
broader level of diversification. People need access in their retirement

647
00:34:27,400 --> 00:34:31,199
accounts to gold, people need access to the retirement accounts

648
00:34:31,239 --> 00:34:35,559
to international stocks, people need access to some bitcoin. Right.

649
00:34:35,639 --> 00:34:37,360
None of this stuff you can get inside of a

650
00:34:37,360 --> 00:34:40,159
four oh one k. So you know, the thing I

651
00:34:40,199 --> 00:34:43,159
tell people is, look, like I said, I don't think

652
00:34:43,599 --> 00:34:45,519
everybody in the world's going to call us, and I

653
00:34:45,519 --> 00:34:47,480
don't think we're the only people in the world that

654
00:34:47,559 --> 00:34:49,599
can do what we can do. But these are the

655
00:34:49,639 --> 00:34:52,480
moments that we've really modeled our firm after. You know,

656
00:34:53,119 --> 00:34:55,800
our whole idea is that we wanted to be the

657
00:34:55,840 --> 00:34:58,760
hedge fund for the working guy. Right where we're looking

658
00:34:59,159 --> 00:35:01,280
or not just trying to get market returns. We're trying

659
00:35:01,320 --> 00:35:05,440
to avoid market capacities. We're trying to give our clients

660
00:35:05,559 --> 00:35:08,519
access to things like gold when it's a good idea

661
00:35:08,679 --> 00:35:14,559
gold mining companies and international stocks, and I just you know,

662
00:35:14,599 --> 00:35:16,039
at the end of the day, I want to grow

663
00:35:16,079 --> 00:35:18,360
my business. But you know this about me, and I

664
00:35:18,400 --> 00:35:20,880
know you're much the same way. I think one of

665
00:35:20,920 --> 00:35:24,519
the reasons that we've been successful as a business outside

666
00:35:24,519 --> 00:35:29,960
of God's grace is there's an honest, dogged determination that

667
00:35:30,000 --> 00:35:32,679
we have to try to protect people from this kind

668
00:35:32,679 --> 00:35:36,320
of garbage, and it's why we give out information the

669
00:35:36,320 --> 00:35:38,320
way we do. I've got somebody asking, why are you

670
00:35:38,360 --> 00:35:40,039
telling people how to do this on your own? Don't

671
00:35:40,159 --> 00:35:43,000
want them to call you? And I'm like, no, we

672
00:35:43,039 --> 00:35:45,280
want to have the biggest positive impact that we can.

673
00:35:45,360 --> 00:35:47,719
Because if you're doing that, the business takes care of itself,

674
00:35:47,760 --> 00:35:49,280
and it does it every time super well.

675
00:35:49,800 --> 00:35:52,119
Speaker 1: And to who much is given, much is expected. And

676
00:35:52,199 --> 00:35:55,840
the Lord blessed you and your wife, and I pray

677
00:35:55,840 --> 00:35:58,360
you continues to do that. Zach, thanks for warning people

678
00:35:58,400 --> 00:36:02,000
about this and thank you for speaking the truth. And

679
00:36:02,039 --> 00:36:04,760
I know that people who support President Trump can be very,

680
00:36:04,880 --> 00:36:07,280
very defensive of them. Guys, this is a bad idea,

681
00:36:07,559 --> 00:36:11,000
and it's difficult to see there's anything other, sorry than

682
00:36:11,039 --> 00:36:13,599
self serving. And hey, you know what, I noticed something

683
00:36:13,679 --> 00:36:18,159
President Trump's human and humans have sin problem, and that's

684
00:36:18,159 --> 00:36:19,679
not going to change until the New Having and the

685
00:36:19,719 --> 00:36:20,159
new Earth.

686
00:36:20,639 --> 00:36:21,760
Speaker 3: This is the todd Ermanshell.

687
00:36:21,800 --> 00:36:24,519
Speaker 1: Please go, be well, be strong, be kind, Please make

688
00:36:24,519 --> 00:36:26,320
every effort to walk in the light of Christ, and

689
00:36:26,360 --> 00:36:28,280
please forgive me as I go home now to my

690
00:36:28,360 --> 00:36:28,960
beloved wife,