1 00:00:00,800 --> 00:00:02,960 Speaker 1: Welcome to another episode of the Chicks on the Right 2 00:00:03,000 --> 00:00:05,960 podcast where we talk to our friend and sponsor of 3 00:00:06,000 --> 00:00:09,880 the show, Zach Abraham from Bulwark Capital Management, and we're 4 00:00:09,880 --> 00:00:13,240 going to talk about something today which admittedly I know 5 00:00:13,359 --> 00:00:16,519 very little about because I'm not a day trader, but 6 00:00:16,600 --> 00:00:18,320 I know a lot of people are into that sort 7 00:00:18,320 --> 00:00:22,280 of thing, and apparently there's just been a recent rules 8 00:00:22,440 --> 00:00:26,920 change that the SEC made where they have eliminated this 9 00:00:27,559 --> 00:00:32,719 pattern day trader designation, which means that you no longer 10 00:00:32,759 --> 00:00:35,439 have to have twenty five grand as a minimum equity 11 00:00:35,479 --> 00:00:40,399 requirement for day trading. And so that's ostensibly something that 12 00:00:40,439 --> 00:00:46,320 will help entice more small, smaller investors into day trading, 13 00:00:46,479 --> 00:00:49,920 I guess, but is this a good thing? I'm sure 14 00:00:50,000 --> 00:00:52,240 you know a lot about day trading and maybe you 15 00:00:52,280 --> 00:00:54,799 can enlighten us on what this all means. 16 00:00:55,240 --> 00:01:00,560 Speaker 2: Yeah, so personally, and I have not looked into the 17 00:01:00,640 --> 00:01:05,879 legislation intimately, but I feel like that's almost like a 18 00:01:05,959 --> 00:01:07,719 tip of the cap, if you will, to the asset 19 00:01:07,760 --> 00:01:12,560 management industry, just because when you look at when you 20 00:01:12,599 --> 00:01:16,280 look at the type of access people have to things 21 00:01:16,319 --> 00:01:20,719 that they can find on kushi now right betting markets, 22 00:01:21,560 --> 00:01:24,159 the leverage you can access in some of those different apps, 23 00:01:24,599 --> 00:01:27,599 the leverage that's very easy to access on Robinhood. 24 00:01:28,879 --> 00:01:29,599 Speaker 1: Like, I. 25 00:01:31,120 --> 00:01:33,040 Speaker 2: Think that it only makes sense that they kind of 26 00:01:33,079 --> 00:01:36,319 lowered some of those requirements. Is it a good thing? Look, 27 00:01:36,359 --> 00:01:38,719 I'm a big believer that I think the more freer 28 00:01:38,840 --> 00:01:43,400 markets are, the better they are. However, a big part 29 00:01:43,439 --> 00:01:47,159 of a market functioning properly is caveat emptour right, buyer beware. 30 00:01:47,719 --> 00:01:51,319 Meaning I think market I don't think, I know. I 31 00:01:51,319 --> 00:01:56,439 think markets work best when there is less regulation and 32 00:01:56,719 --> 00:02:01,840 more consequence. Right. I think that people act rationally, and 33 00:02:01,920 --> 00:02:05,239 I think it is much easier to make somebody responsible 34 00:02:05,319 --> 00:02:09,599 for their own financial wellbeing and they govern their own 35 00:02:09,639 --> 00:02:12,520 trades as opposed to passing you know, my whole thing. 36 00:02:12,520 --> 00:02:15,120 And you guys know this, but you cannot legislate out 37 00:02:15,199 --> 00:02:18,280 human stupidity, right, Right, If somebody wants to do something stupid, 38 00:02:18,520 --> 00:02:20,680 you're good luck stopping them, right. And if you don't 39 00:02:20,680 --> 00:02:25,840 believe me and ne Brad kids, right, so yeah, no, no, 40 00:02:25,960 --> 00:02:29,400 don't hit your brother with a hammer. Right. It's stuff 41 00:02:29,400 --> 00:02:30,919 you didn't think you're gonna have to say to somebody. 42 00:02:33,599 --> 00:02:36,159 Is that should that make people day? Look? I'm never 43 00:02:36,199 --> 00:02:38,439 gonna say that somebody shouldn't try to become a trader 44 00:02:38,919 --> 00:02:41,439 or this or that. What I am a proponent of 45 00:02:41,520 --> 00:02:46,199 is people understanding the statistics. If you start off trying 46 00:02:46,199 --> 00:02:49,000 to be a day trader, and you do it right, 47 00:02:49,400 --> 00:02:52,520 and you work your tail off, probably ninety ninety five 48 00:02:52,560 --> 00:02:55,080 percent of you will leave that exercise with more money 49 00:02:55,120 --> 00:02:57,800 than you started. Okay, And that's not me telling you 50 00:02:57,919 --> 00:03:01,199 can't do it. The percentage is in my industry. Actually 51 00:03:01,240 --> 00:03:03,639 we're exactly the same. So I'm proof that you can 52 00:03:03,759 --> 00:03:08,879 overcome those kinds of odds. Should you. That's another thing entirely. 53 00:03:08,919 --> 00:03:11,080 I'm of the big mind that if you want to 54 00:03:11,120 --> 00:03:14,840 be an active manager like we are right like picking 55 00:03:14,840 --> 00:03:20,400 individual securities, making individual bets things like that, I can't 56 00:03:20,439 --> 00:03:24,080 imagine trying to do that in a non full time capacity. 57 00:03:24,680 --> 00:03:27,759 And when I say full time, I mean I'm paying, 58 00:03:28,000 --> 00:03:29,759 you know, over a million dollars a year out of 59 00:03:29,800 --> 00:03:33,120 our firm's own money for analysts and trading machines. And 60 00:03:33,360 --> 00:03:36,960 that's how serious we take it. Right, So if you, 61 00:03:37,159 --> 00:03:39,319 in my opinion, if you're not willing to take it 62 00:03:39,400 --> 00:03:44,080 that serious yourself, I would not do that, And it 63 00:03:44,120 --> 00:03:46,759 doesn't mean you can't, right, doesn't mean that you don't 64 00:03:46,759 --> 00:03:50,960 have a skill. But this is the most competitive game 65 00:03:51,000 --> 00:03:54,719 in the world. It just is, right, financial markets, and 66 00:03:56,240 --> 00:03:58,560 you know, when you're going to take them on and 67 00:03:58,599 --> 00:04:00,360 you want to start day trading or do that, you 68 00:04:00,479 --> 00:04:05,400 need to understand that's what you're competing against, so you know, 69 00:04:05,439 --> 00:04:08,039 and that's one of the reasons that when we're quote 70 00:04:08,159 --> 00:04:11,319 unquote trading, we do it in selective markets. We do 71 00:04:11,360 --> 00:04:13,000 it in markets where we think that we have an 72 00:04:13,000 --> 00:04:15,360 aedgurin advantage. If we don't think that we have an 73 00:04:15,439 --> 00:04:18,000 edgerin advantage, we're not going to operate in that market. 74 00:04:18,399 --> 00:04:20,000 And people are like, well, how do you know if 75 00:04:20,000 --> 00:04:22,000 you've got an edge your advantage, And you go, well, 76 00:04:22,040 --> 00:04:24,920 if you don't know that, you shouldn't be betting, right, 77 00:04:25,120 --> 00:04:27,360 Like it's it really is like poker, like if you 78 00:04:27,360 --> 00:04:30,040 can't spot the sucker at the table, you're that. And 79 00:04:30,879 --> 00:04:33,279 one of the things that scares me about this environment 80 00:04:33,759 --> 00:04:36,639 is that so many of those types of dream machine 81 00:04:36,680 --> 00:04:40,079 investments like bitcoin and crypto and so much of this 82 00:04:40,120 --> 00:04:43,079 stuff has worked, and so what it's kind of led 83 00:04:43,120 --> 00:04:47,560 people to believe is that that's that's how you do things. 84 00:04:47,959 --> 00:04:48,360 Speaker 1: You guys. 85 00:04:48,399 --> 00:04:51,000 Speaker 2: Know this, one of the worst things that can possibly 86 00:04:51,079 --> 00:04:53,360 happen to a young person or a neophyte in any 87 00:04:53,360 --> 00:04:58,079 career is like instant success, right, because because it's usually 88 00:04:58,120 --> 00:05:00,519 confirmation of all of the wrong things, you know what 89 00:05:00,560 --> 00:05:04,199 I mean. Like one of a guy that I really 90 00:05:04,240 --> 00:05:07,360 look up to a lot in the investment world, he 91 00:05:07,439 --> 00:05:10,079 talks about how his career started off. He came right 92 00:05:10,120 --> 00:05:13,399 into this bull market and everything he touched went to gold, 93 00:05:13,839 --> 00:05:16,040 and eight or nine years in he's just like, man, 94 00:05:16,079 --> 00:05:19,360 I'm really good, right, I'm really good. Well, the market 95 00:05:19,399 --> 00:05:23,240 shifted and he went bankrupt, right, oh my god. Yeah. 96 00:05:23,319 --> 00:05:25,839 Now he's ended up being a billionaire investor and been 97 00:05:25,879 --> 00:05:29,560 successful despite that. But he talks about like how you know, 98 00:05:30,240 --> 00:05:34,959 getting confirmation of you know, getting positive outcomes when you 99 00:05:35,040 --> 00:05:38,319 don't really know how they're coming. You know. The old 100 00:05:38,319 --> 00:05:40,319 adage in Wall Street is don't confuse brains with a 101 00:05:40,319 --> 00:05:43,040 bull market, and I think that's probably the best way 102 00:05:43,040 --> 00:05:44,639 to say it. There's a lot of people that are 103 00:05:44,680 --> 00:05:47,839 over confident right now on the investment side because so 104 00:05:47,920 --> 00:05:50,399 many of these dream machine type things have gone up 105 00:05:50,879 --> 00:05:53,279 and the only way you were wrong is if you sold. 106 00:05:53,639 --> 00:05:55,959 And so what did that teach them no matter how 107 00:05:56,000 --> 00:05:58,480 bad the asset is, just hold it forever. Yeah, well 108 00:05:59,319 --> 00:06:03,120 that's gonna lead to some serious zeros right in the portfolio. 109 00:06:03,279 --> 00:06:07,000 So look, I I and I even tell our clients. 110 00:06:07,560 --> 00:06:09,720 I go, they go, Zach, do you want me trading? 111 00:06:09,759 --> 00:06:11,319 And they always assume I don't want them trading? And 112 00:06:11,360 --> 00:06:14,560 I go, no, the more you know, the best Usually 113 00:06:15,079 --> 00:06:17,560 with our clients, it's like that, our most educated clients, 114 00:06:17,560 --> 00:06:19,399 those are the ones that we have the best relationships with. 115 00:06:19,720 --> 00:06:22,240 They understand what we're doing and therefore they understand the 116 00:06:22,319 --> 00:06:25,360 value in it. Right, So it's a pretty good relationship. 117 00:06:25,399 --> 00:06:26,639 Speaker 1: And I'm the least educated. 118 00:06:27,120 --> 00:06:33,639 Speaker 3: Yeah, well yes, so hey, but hey, those are the 119 00:06:33,680 --> 00:06:37,120 two types of clients, right, Those are the two types 120 00:06:37,199 --> 00:06:39,399 the ones that go, hey, I know, I don't know, 121 00:06:40,000 --> 00:06:42,680 or the ones that say, I know, and that's. 122 00:06:42,519 --> 00:06:46,519 Speaker 2: Why I hired you, right, That's why I hired you. Right. 123 00:06:46,560 --> 00:06:48,759 And the funny thing is is when I say the 124 00:06:48,800 --> 00:06:51,240 best kind of clients, I don't even just mean for us. 125 00:06:51,560 --> 00:06:54,639 And I want everybody to hear this, because you guys 126 00:06:54,720 --> 00:06:58,639 are hearing me talk about things that you know, guys 127 00:06:58,680 --> 00:07:00,720 don't say this stuff publicly, right, This is stuff we 128 00:07:00,839 --> 00:07:04,920 keep behind closed doors. Really, but it really the clients 129 00:07:05,000 --> 00:07:08,519 that have the best results are those kinds of clients. Yeah, right, 130 00:07:08,920 --> 00:07:10,839 because either they know a lot, which is why they 131 00:07:10,879 --> 00:07:13,040 trust us, or they acknowledge that they don't, which is 132 00:07:13,079 --> 00:07:15,720 why they trust us. It's the ones in the middle 133 00:07:16,160 --> 00:07:18,399 they get involved. I tell a story and I really 134 00:07:18,560 --> 00:07:20,000 like this guy. If he hears this, I don't want 135 00:07:20,040 --> 00:07:21,720 him to think I'm dogging on him. But he got 136 00:07:21,800 --> 00:07:24,519 freaked out. He called me about a little over a 137 00:07:24,639 --> 00:07:28,199 year ago. Our portfolios are up about five percent on 138 00:07:28,240 --> 00:07:30,439 the year. This is last year, and he's freaked out. 139 00:07:30,480 --> 00:07:32,920 He said he wanted to sit in cash. Okay, since 140 00:07:33,000 --> 00:07:34,800 that day he pulled out, I begged him not to. 141 00:07:34,959 --> 00:07:37,040 I said, look, the market may have issues, but I 142 00:07:37,079 --> 00:07:39,600 really love the stuff we're invested in. Since he pulled 143 00:07:39,600 --> 00:07:42,720 out fourteen months ago, our portfolios are up fifty three percent. 144 00:07:44,560 --> 00:07:45,959 Speaker 1: Is he kicking himself? 145 00:07:46,319 --> 00:07:46,480 Speaker 2: Oh? 146 00:07:46,560 --> 00:07:46,839 Speaker 1: He is. 147 00:07:47,120 --> 00:07:50,279 Speaker 2: But now here's the other issue, because he's dealing with 148 00:07:50,360 --> 00:07:54,079 another challenge right now, and that is when that happens. 149 00:07:54,399 --> 00:07:58,360 What do you do now? Right right? Because now he's 150 00:07:58,360 --> 00:08:01,160 sitting understandably so sitting there going well, I don't want 151 00:08:01,160 --> 00:08:03,680 to buy into this now. I like I said, go, 152 00:08:03,720 --> 00:08:05,279 I think you're making the same mistake now that you 153 00:08:05,360 --> 00:08:07,519 were making back then, which is just because we're up 154 00:08:07,560 --> 00:08:09,879 that much. The question you should have is why, And 155 00:08:10,000 --> 00:08:12,480 I think we're just at the beginning of that inflection point. 156 00:08:12,680 --> 00:08:15,959 But my point is is it's that middle ground or 157 00:08:16,040 --> 00:08:19,040 you know, or how many times right before we started 158 00:08:19,079 --> 00:08:21,439 this recent run where we're beating the market like by 159 00:08:21,720 --> 00:08:23,680 I want to say, thirty five percent over the last 160 00:08:23,680 --> 00:08:26,199 two years. We had a slow year the year before 161 00:08:26,240 --> 00:08:28,680 where we didn't. We had clients leave, and it was 162 00:08:28,759 --> 00:08:31,120 those clients in the middle ground again that thought they 163 00:08:31,199 --> 00:08:33,519 knew enough. They're like, well you've underperformed the S and 164 00:08:33,600 --> 00:08:35,200 P for the last year and a half, and go, 165 00:08:35,639 --> 00:08:38,960 well you just missed on a thirty five forty percent 166 00:08:39,000 --> 00:08:42,039 out performance. It just right right? 167 00:08:43,720 --> 00:08:43,919 Speaker 1: Yeah. 168 00:08:44,000 --> 00:08:46,799 Speaker 2: Yeah, So so long story shore, I think anytime you 169 00:08:46,919 --> 00:08:49,799 make markets more open and more free is a good thing, 170 00:08:50,320 --> 00:08:52,200 whether you should do it, and I'll just say it 171 00:08:52,320 --> 00:08:56,120 right now, don't ever use leverage. Don't use leverage, don't 172 00:08:56,240 --> 00:09:01,080 use margin, don't use debt to invest. That's stupid. But yeah, 173 00:09:01,200 --> 00:09:03,039 is it a good thing? I think generally speaking, it's 174 00:09:03,039 --> 00:09:04,960 a good thing for markets. Should people jump in there 175 00:09:05,000 --> 00:09:07,600 and take advantage of it? Probably not. Probably. 176 00:09:08,399 --> 00:09:10,440 Speaker 1: It sounds to me like what I've taken away from 177 00:09:10,480 --> 00:09:12,919 this session with you is that there is no bad 178 00:09:13,840 --> 00:09:17,159 client for you. I mean, there's no client that cannot 179 00:09:17,240 --> 00:09:21,279 be helped by you if they just listen. And I'm 180 00:09:21,279 --> 00:09:22,960 sure there's a lot of people in our audience who 181 00:09:23,000 --> 00:09:25,679 could benefit. So how can people get in touch with 182 00:09:25,759 --> 00:09:27,759 you and find out more about Bulwark? 183 00:09:28,240 --> 00:09:28,480 Speaker 3: Yeah? 184 00:09:28,600 --> 00:09:32,000 Speaker 2: So really easy. Go to Bullworkcapital Management dot com. Check 185 00:09:32,000 --> 00:09:33,840 out our daily podcast that we put out every day 186 00:09:33,879 --> 00:09:35,600 called the Daily Dots. You can get that at Know 187 00:09:35,720 --> 00:09:38,679 Your Risk Podcast dot com. Search just search to Know 188 00:09:38,799 --> 00:09:41,639 Your Risk Podcast on YouTube. Get the video feed pretty 189 00:09:41,639 --> 00:09:45,600 easy to find. Just google Zach Abraham Bullwarkcapitalmanagement dot com 190 00:09:45,720 --> 00:09:49,519 and ignore anything bad that somebody says about me. That's 191 00:09:49,600 --> 00:09:53,519 all great? Oh great, Thank you ladies, yep, thank you. 192 00:09:54,120 --> 00:09:57,519 Investment advisory services offered through Trek financialc and SEC Registered 193 00:09:57,559 --> 00:09:59,919 Investment advisor. The opinions expressed in this programmer for general 194 00:10:00,039 --> 00:10:01,360 informational purposes only and are not. 195 00:10:01,360 --> 00:10:04,000 Speaker 3: Intended to provide specific advice or recommendations for any individual 196 00:10:04,080 --> 00:10:05,279 around any specific security. 197 00:10:05,320 --> 00:10:07,279 Speaker 2: Any references to performance of security so are thought to 198 00:10:07,320 --> 00:10:09,519 be materially accurate, and actual performance may differ. 199 00:10:09,559 --> 00:10:12,000 Speaker 3: Investments involved risk and are not guaranteed. Past performance doesn't 200 00:10:12,000 --> 00:10:12,919 guarantee future results. 201 00:10:12,960 --> 00:10:14,120 Speaker 2: Track twenty four three zero eight