Speaker 1: Welcome to another episode of the Chicks on the Right podcast. Today,
we have our friend and sponsor of the show, Zach
Abraham from Bulwart Capital Management, to talk with us about
some recent ideas that Trump and his administration have had
that people are kind of scratching their heads about. So
one of those things is a fifty year mortgage plan,
which is a.
Speaker 2: Lot of years.
Speaker 1: And the other is this idea of two thousand dollars
stimulus checks for people that are considered low income.
Speaker 2: I don't even remember what the cutoff is.
Speaker 1: I think it may be one hundred grand or less
per year or something like that. And so what are
we doing? Like I feel like these sounds like what
are we doing by me kinds of things?
Speaker 3: Right, Yeah, So the great question, I'm going to answer
it in kind of two parts.
Speaker 4: A will rest the merits of each one of those
things individually, but then also look at what I think
the real message that we should be taking from that is.
So I am not at all surprised that these ideas
have been pushed forward. I think that eventually these ideas
would have been pushed forward by anybody. As a matter
of fact, I would guarantee you there are people in
the Biden administration who the minute somebody out of Trump's
camp said fifty year mortgage, whether it was Trump or
somebody else, they probably thought to themselves, God, dang it,
we should have done that.
Speaker 3: And the reason why is, you know, I don't.
Speaker 4: I don't think I ever envisioned a fifty year mortgage personally,
like thought, oh, that's coming.
Speaker 3: Hey, do you'd ask me that two years ago?
Speaker 4: I'd have been like, oh, yeah, we'll see a fifty
year mortgage and we'll probably end up seeing a hundred
year option at some point.
Speaker 2: Oh my gosh.
Speaker 4: But but and here's my point is that this is
where we're at, meaning I think it would have happened.
And when I say think, I'm trying to be humble,
I mean I know that a fifty year mortgage would
have gotten rolled out eventually by regardless of who was
in office. And the reason why is something that we've
been talking about for a long time, and people need
to pay attention. You know that old adage, when somebody
tells you who they are, believe them right. Well, the
market's telling you how things work now, and it's been
telling you that for fifteen years.
Speaker 3: Believe it Okay, the.
Speaker 4: Days you needing to worry about your portfolio crashing eighty
five to ninety percent ie nineteen twenty nine, great depression,
all that kind of stuff.
Speaker 3: That's not the threat. Guys.
Speaker 4: The best performance stock market in the world over the
last ten years, you know what it is?
Speaker 3: Zimbabwe. Okay.
Speaker 4: Their stock market's averaged about nine hundred percent a year. Okay,
their currency is devalued by about twelve hundred percent a year.
Speaker 2: My god.
Speaker 4: Okay, So now I'm not saying we're going to be Zimbabwe.
But what I'm saying is, look, if you're well, Zach,
I'm worried about this blowing up. I'm worried about that
blowing up. You know what, You probably right to be worried.
It probably will blow up. But guess what, I know
what they're gonna do. You know what they're gonna do
when it blows up. They're going to print a lot
of money in film Home. And the reason they're going
to do that, and the reason they're going to launch
fifty your mortgages, and the reason they're going to launch
a hundred your mortgages is because it alleviates the pain
of all of the irresponsible decisions we've made for thirty
years while allowing them to still get elected.
Speaker 3: It kicks the can down the road, right, It doesn't deal.
Speaker 4: And you've got an issue now part of us, and
I get it. We shake our heads and go, man,
the politicians are screwing us again.
Speaker 3: Right.
Speaker 4: The flip side, to be fair to the politicians is
the electorate in the United States has become so pacified
and so wasified that their entire political viewpoint shifts if
their portfolio drops fifteen or twenty percent over a six
month period of time. Right, market's up, the president's doing good,
market's down, president's doing bad. Right, So we have become
we've come to the point where we decided, especially after
eight oh nine, that we didn't think recessions.
Speaker 3: Were politically feasible anymore.
Speaker 4: So we just said we're not gonna have any regardless
of the cost, regardless of.
Speaker 2: The fact whether doesn't that can eventually get kicked so
far down the road though, that like somebody's got to
catch it.
Speaker 3: No great, right, And so we're the point in saying this.
Speaker 4: I was thinking about a lot about this weekend, and
when you look back through history, and I'm a huge
believer in studying history because it's going to.
Speaker 3: Tell you what comes next, right, because people don't change. Right.
Speaker 4: You know where I think we are, honestly, and it
fits perfectly. I think we are England circa nineteen thirty,
oh my god, right where where we're still a player
on the world stage. Right, We're still a powerful player
on the world stage, but our dynastic days of being
the one and only empire over. I really believe that
not the way we we have been for the last
fifty or sixty years, and that we are going down
the path of not mattering as much anymore because of
these decisions that we're making, and what should.
Speaker 1: We be doing to avoid that from being a reality?
Speaker 4: Let free markets do what they do, and it's not fun. Rightly,
here's the great irony. We all sit here and greed
that we live in the greatest country on earth, right,
greatest opportunity. We all agree on that, and yet none
of us want to do any of the things that
got us here.
Speaker 3: Now.
Speaker 4: We don't like the free markets because we don't like
it when the outcome isn't what we like. Right, Well,
the free markets are what got you here, right, the
free market. The price you pay is recessions. The price
you pay is temporarily high unemployment, and it's it's a bummer.
Speaker 2: Well, it's frustrating. It's frustrating when the conservatives don't let
it happen because we're supposed to be about the free market.
That's what really irritates me.
Speaker 4: Yeah, yeah, this, and this is why I always say
that I was radicalized in eight on nine.
Speaker 3: And the reason I say say that.
Speaker 4: Is because what you saw was the beginning of we
don't like the outcome of free markets. So we're going
to print a bunch of fun tickets by e money,
and we're going to fill him in the hole, and
we're going to make reality what we want and every
boy and girl gets a candy cane and a pony ride, right,
And hey, it feels good at the time, but we
all know we do that in our personal life. It
leads disaster. Do that in our marriage, it leads disaster.
That raising our kids, it.
Speaker 3: Leads a disaster. Do that with our bodies, it leads
to disaster. But it's gonna work great for a country.
Speaker 1: Yeah, it's just so dumb because we've talked over and
over and over again about how important it is to
reduce the debt that is at astronomical levels. And so
we do the tariffs and we get to brag about
all this revenue coming in, and what does he do.
Speaker 2: He's like, let's give this away.
Speaker 1: It's like, I can't stand to have it in our pockets.
We got to dole it out. It's just such a
give me for votes. It's like a total play for
votes in my mind, and I hate it.
Speaker 3: I hate.
Speaker 2: It's ridiculous. Yeah, why don't we pay down the debt?
Speaker 3: Now? The flip The.
Speaker 4: Flip side is is if he doesn't do those things,
do you think he wins midterms?
Speaker 3: Probably not?
Speaker 2: Is it going to help him back?
Speaker 4: Yo?
Speaker 3: Yeah?
Speaker 4: Hey, the one thing that's still hey, the one thing
that's still who just got elected in New York, The
one thing that still works in American politics is offering
to give.
Speaker 3: People stuff that still really works.
Speaker 4: It is gross, it's pathetic, but that's but that's what
we've been that's what we've been reduced to. And like
I said, that's why you're gonna see a fifty year
mortgage at some point. You're going to see a hundred
your mortgage at some point. Why, Because we're all about anesthesia.
We don't treat any causes, We just treat symptoms. And
and also the other thing, and this is the point
that I was trying to make, is they are dealing
with it. That's the thing that I don't think people realize.
There they are paying down the debt, they're inflating it away.
Speaker 3: Right. There's two ways that you can deal with debt.
Meaning one of.
Speaker 4: The easiest ways to deal with debt is to sit
there and go, hey, I'm going to borrow money from
you today at its value, but I'm going to pay
it back to you thirty years from now at the
value then.
Speaker 3: Right.
Speaker 4: So meaning when I figure in interest earned on that
money over the next thirty years plus the devaluing of
money over thirty years, that's probably going to be very
close to a cost free loan for me, right right, So,
meaning if I can either pay down the debt or
I can reduce the value of the currency that the
debt is in, the net effect is the same. So
meaning what they're going to do is they're going to
do what Britain did. They're going to do what France did,
They're going to do what Spain did. They're going to
do what Rome did, and they are going to inflate
it away. And the reason they're going to inflate it
away is it is easier politically to explain five to
six percent inflation. It's actually really more like ten to
eleven because they jigger the inflation statistics through a process
called hedonic adjustments. And that's a whole other topic. But
it's much easier to explain that to the electorate than
ten percent unemployment.
Speaker 2: I'm so depressed. I know we're all so dumb. I mean,
this is we don't have to be. All people need
to do is just attend one of your seminars.
Speaker 3: Right.
Speaker 2: Oh wow, that's the thing. I know. She's so good
to even.
Speaker 3: See it coming. I didn't even see it coming that day.
Speaker 1: I hate you, Like it's like it's four right upside
the face, Like she gets you right in the in
the face.
Speaker 2: Sack.
Speaker 4: Hey, I know what it's like to play basketball with
Magic Johnson, right, you know, the behind the back passes,
the greatest sist. She's like the greatest point Guarden podcast history.
Speaker 2: Yeah, she is gets you right in the face.
Speaker 3: Hey, So I'll tell you where they can hear it.
Great transition, but also earnestly, like you said, we feel
so dumb.
Speaker 4: Yes, but there's there is one pushback we've got, guys,
and it's investing in a way that insulates us from
a lot of this and benefits from it.
Speaker 3: And it's the reason our value.
Speaker 4: Portfolio is up nearly thirty percent on the year and
we're not taking nearly as much risk as the market.
We're investing in things that will benefit from what I'm
talking about. Okay, The beautiful thing about it is, bizarrely,
all the things that benefit from this stuff long term
are historically cheap right now. So like as a value investor,
I'm just sitting there licking my chops. But that's what
we're going to talk about at the seminar. Is hey,
because people hear about our performance in their first thought is, oh,
you're taking more risk.
Speaker 3: No. No.
Speaker 4: Earlier this year when the market was down fifteen percent,
our portfolio is down like three and a half or
four and we're out performing to the upside. So we're
going to explain how we do that, our risk management process,
what makes us different, What being active managers really means
that you've got a team of people looking over your money.
Twenty four hours a day. We're not just throwing you
in funds and talking to you once a quarter. Right,
you actually have money managers. So just explaining who we are,
how we do, what we do, and you can sign
up for that.
Speaker 3: It's free of charge.
Speaker 4: It doesn't put you into a queue where we're calling
you every weekend. Go to Bulwarkthapitalmanagement dot com and sign
up and you'll get a flyer. If you're interested, we'll
hook you up with me or one of our other advisors.
If not, hopefully you'll leave more educated.
Speaker 2: Awesome, perfect, love it, Thank you, Thanks that, Thank.
Speaker 3: You, ladies. Investment advisory services offered through TREK Financial loc
and SEC Registered Investment advisor.
Speaker 4: The opinions expressed in this program er for general informational
purposes only and are not intended to provide specific advice
or recommendations for any individual or on any specific security.
Any references to performance of security so it thought to
be materially accurate and actual performance may different.
Speaker 3: Investments involved risk and are not guaranteed. Past performance doesn't
guarantee future results. Trek twenty four to three zero eight