1 00:00:00,400 --> 00:00:02,359 Speaker 1: It's funny thing. You know. You talk to your dear 2 00:00:02,359 --> 00:00:04,799 friend brother Zach Abraham, You're shared with him some good news. 3 00:00:04,799 --> 00:00:06,240 You know, Zach and I are going down to renew 4 00:00:06,280 --> 00:00:09,400 healthcare in Mexico June seventh through the eleventh. And if 5 00:00:09,400 --> 00:00:11,480 you're in the pipeline for treatment, man see if you 6 00:00:11,480 --> 00:00:13,839 can move the treatment up and come and hang with us. 7 00:00:13,839 --> 00:00:16,559 We already got a bunch of people for dinner to dinners, 8 00:00:17,079 --> 00:00:19,160 so I decided to bring a family member with me 9 00:00:19,280 --> 00:00:23,800 last minute, and I go and I booked the tickets 10 00:00:24,199 --> 00:00:27,960 and it's a third of what I paid, and I 11 00:00:28,079 --> 00:00:33,719 booked like three weeks ago, and I bought first class 12 00:00:33,759 --> 00:00:36,240 because I'm a wimp and I'm spoiled and I can't 13 00:00:36,280 --> 00:00:39,399 stand coach a third of what I paid. So I'm 14 00:00:39,399 --> 00:00:42,240 thinking it's great news. So then I get Zach. We're 15 00:00:42,280 --> 00:00:44,079 sitting there talking. I tell them about this, and he goes, oh, yeah, 16 00:00:44,079 --> 00:00:46,880 there's a huge headwinds in the economy. There's that's that's 17 00:00:47,000 --> 00:00:50,320 that's travels. Oh oh good. And I was feeling all good. 18 00:00:50,880 --> 00:00:53,240 We'll talk with that about Zach about that and also 19 00:00:53,359 --> 00:00:57,960 rich Dad, poor Dad says the end is here economically, 20 00:00:57,960 --> 00:01:00,399 the end is here. What does Zach say. We'll talk 21 00:01:00,399 --> 00:01:02,920 about this with the help of Visible that's gobisible dot 22 00:01:03,000 --> 00:01:04,319 com and with God almighty. 23 00:01:06,519 --> 00:01:10,840 Speaker 2: But Todd Herman show is one disapproved by big pharma 24 00:01:11,040 --> 00:01:18,239 technocrats in tyrone s everywhere from the highd mountains of 25 00:01:18,359 --> 00:01:26,159 Free America. Here's the Emerald City, Excie Todd Herman. 26 00:01:29,439 --> 00:01:31,920 Speaker 1: Today is the day the Lord has made, and these 27 00:01:31,959 --> 00:01:34,359 at the time so which God has decided we shall live. 28 00:01:34,400 --> 00:01:37,280 My friend and brother, Zach Abraham, joins me, Chief Investment 29 00:01:37,280 --> 00:01:38,920 Officer Bulwark Capital Management. 30 00:01:38,920 --> 00:01:39,079 Speaker 2: Man. 31 00:01:39,120 --> 00:01:41,519 Speaker 1: I cannot wait for our trip to Mexico. Super excited 32 00:01:41,560 --> 00:01:43,000 to be down there with you and welcome back to 33 00:01:43,040 --> 00:01:43,359 the show. 34 00:01:44,239 --> 00:01:51,519 Speaker 3: Thank you, sir. And my golf clubs they're already getting excited. Well, 35 00:01:52,359 --> 00:01:54,680 they can smell it. I you know, I'm convinced they 36 00:01:54,719 --> 00:01:56,519 can smell it when they're going to be an eighty 37 00:01:56,560 --> 00:01:59,719 to ninety degree heat by an ocean hitting golf balls. 38 00:02:00,120 --> 00:02:03,000 So my back, my knee, and my golf clubs are 39 00:02:03,040 --> 00:02:04,120 really pumped. 40 00:02:03,799 --> 00:02:04,239 Speaker 4: To go down. 41 00:02:04,719 --> 00:02:06,680 Speaker 1: I love it. Yeah, And it's going to be June 42 00:02:06,760 --> 00:02:09,919 seventh through the eleventh. That's renewed healthcare. Probably if you're 43 00:02:09,919 --> 00:02:12,639 not in the pipeline, for treatment. Maybe you could get in. 44 00:02:12,919 --> 00:02:14,759 But if you're in the pipeline for treatment, you're going later. 45 00:02:14,800 --> 00:02:17,360 Please come and join me and Zach and have some 46 00:02:17,400 --> 00:02:19,639 fun with us. So let me just start with this. 47 00:02:20,680 --> 00:02:22,840 I want to get to this Robert Kiyosaki thing because 48 00:02:22,879 --> 00:02:25,560 I actually like him and his writing. I thought, Rich 49 00:02:25,639 --> 00:02:27,960 Dad Port, that's a really good book, a lot of 50 00:02:28,080 --> 00:02:31,560 just just you know, super classical wisdom. Here's how people 51 00:02:31,919 --> 00:02:34,639 who view money as a tool live, Here's how people 52 00:02:34,639 --> 00:02:37,479 who view money as sustenance live. Right, I think that's 53 00:02:37,520 --> 00:02:40,439 why to put it. So let's start with this, though. 54 00:02:41,080 --> 00:02:44,599 How big a deal is the downgrade? Moody downgrades US 55 00:02:44,680 --> 00:02:48,479 credit rating from triple A to double A one and 56 00:02:48,520 --> 00:02:50,719 they say it's the budgetary burden the government faces and 57 00:02:50,800 --> 00:02:52,879 high interest rates. Wait, we have a budgetary burden? 58 00:02:53,719 --> 00:02:56,199 Speaker 3: Yeah, nothing to write home. 59 00:02:58,199 --> 00:03:00,759 Speaker 1: How big a deal is this? Does anyone in your 60 00:03:01,280 --> 00:03:04,840 like circle of friends and people in high finance they 61 00:03:04,840 --> 00:03:05,759 actually care about Moody? 62 00:03:07,159 --> 00:03:11,439 Speaker 3: No, and and and so the the how big of 63 00:03:11,479 --> 00:03:14,879 a deal it is? Look, I mean you don't want 64 00:03:14,879 --> 00:03:18,680 to just you know, gloss over it. I mean the 65 00:03:18,719 --> 00:03:21,039 reason that they're downgrading us and we should have been 66 00:03:21,080 --> 00:03:25,319 downgraded I mean, it's still kind of funny if you 67 00:03:25,360 --> 00:03:28,000 look at in comparison to other things, because you know, 68 00:03:28,039 --> 00:03:30,520 everybody's a fiat currency, right, so we're going to downgrade 69 00:03:30,520 --> 00:03:35,280 you because you're more fiat, you know, like you know, yeah, 70 00:03:35,360 --> 00:03:37,639 so so there's a little bit of that. 71 00:03:37,719 --> 00:03:39,840 Speaker 4: I mean, like you know, pen and paper. 72 00:03:39,840 --> 00:03:41,919 Speaker 3: I understand why they did it, and I think it's 73 00:03:41,919 --> 00:03:47,240 perfectly acceptable. But no, it's Look, there's serious things going 74 00:03:47,280 --> 00:03:52,319 on and the Fed, you know, it's it's not unprecedented 75 00:03:52,439 --> 00:03:54,560 for them to lose the back end of the curve, 76 00:03:54,639 --> 00:03:56,680 right for high rates. If you see the stock market 77 00:03:56,719 --> 00:03:58,520 getting hit today, that's what it's all about. The thirty 78 00:03:58,599 --> 00:04:01,400 year treasury, I believe, is bad back above five uh, 79 00:04:01,520 --> 00:04:04,039 and that's a real that is a real pain. 80 00:04:03,879 --> 00:04:05,919 Speaker 4: Point for the economy. Yeah. 81 00:04:06,240 --> 00:04:10,400 Speaker 3: And when Trump is talking about tax cuts and he's 82 00:04:10,400 --> 00:04:14,879 talking about interest rate cuts, as long as he's talking 83 00:04:14,919 --> 00:04:17,160 about those things, and this is not a knock against Trump, 84 00:04:17,279 --> 00:04:19,839 I'm a Trump you know, I'm I support the president 85 00:04:19,839 --> 00:04:24,000 and voted for him. But if he's talking about those 86 00:04:24,000 --> 00:04:25,959 things in this environment, the back end of the curve 87 00:04:26,040 --> 00:04:27,319 is going to keep going on. People are going to 88 00:04:27,439 --> 00:04:29,240 keep selling long dated bonds. 89 00:04:29,639 --> 00:04:34,160 Speaker 1: Okay. So if that's the case, then if president comes 90 00:04:34,199 --> 00:04:36,079 going to keep talking about these things he's and I 91 00:04:36,120 --> 00:04:39,120 don't think the president top stops talking about a thing. 92 00:04:39,360 --> 00:04:41,600 I've never seen him stop talking about a thing. Right, 93 00:04:42,560 --> 00:04:45,120 if you were to meet privately with him, and he 94 00:04:45,160 --> 00:04:47,120 were to come to you and sit you down and say, Zach, 95 00:04:48,160 --> 00:04:52,120 what are the things I should talk up versus stop 96 00:04:52,199 --> 00:04:54,439 talking about? What would you say if he were sitting 97 00:04:54,480 --> 00:04:55,959 there and you guys are having dinner, and he's in 98 00:04:55,959 --> 00:04:58,079 a great mood and he's really seeking this from. 99 00:04:57,920 --> 00:04:59,279 Speaker 5: You, What was you? 100 00:04:59,360 --> 00:05:03,879 Speaker 4: Yeah? So I would say you need it. 101 00:05:03,959 --> 00:05:08,519 Speaker 3: In my opinion, you need to be talking about fiscal restraint. 102 00:05:09,439 --> 00:05:15,000 You need to put up some type something solid, something 103 00:05:15,759 --> 00:05:20,639 of substance that shows that in earnest you are attempting 104 00:05:20,680 --> 00:05:22,079 to hold down spending. 105 00:05:22,240 --> 00:05:22,639 Speaker 4: Okay. 106 00:05:23,040 --> 00:05:26,079 Speaker 3: The other thing, you can't keep talking up the stock market. 107 00:05:26,600 --> 00:05:30,560 I don't think in the near term there is. I 108 00:05:30,600 --> 00:05:36,519 think the path of least resistance economically and for his administration. 109 00:05:36,800 --> 00:05:41,120 Speaker 4: Is to endure a short recession. Okay. 110 00:05:41,399 --> 00:05:43,800 Speaker 3: And the reason why I say that is because you 111 00:05:44,000 --> 00:05:46,480 need the back end of the curve down if you 112 00:05:46,600 --> 00:05:51,480 want to lower the deficit. The quickest it will be 113 00:05:51,560 --> 00:05:54,360 to get that long those long term rates down and 114 00:05:54,399 --> 00:05:57,879 get them down fast. You're not going to get him 115 00:05:57,879 --> 00:06:00,759 down by cutting. Go back and look last year what 116 00:06:00,959 --> 00:06:05,680 happened to the long end after Powell cut it went up? 117 00:06:06,560 --> 00:06:10,600 Why because it's seen as like less fiscal restraint, right 118 00:06:10,680 --> 00:06:14,920 And why did that worm turn right now? I don't know, 119 00:06:15,079 --> 00:06:17,480 but this is what we were talking about. When you 120 00:06:17,519 --> 00:06:21,560 get into a place like this, you are relying on faith, 121 00:06:22,040 --> 00:06:26,199 right like as an investor, and faith just turns all 122 00:06:26,199 --> 00:06:29,279 of a sudden. You know, it's hard to predict, right 123 00:06:29,319 --> 00:06:31,879 when it's just going to turn. Well, now it has, 124 00:06:32,439 --> 00:06:38,120 and there are probably political reasons behind the scenes. I 125 00:06:38,120 --> 00:06:41,160 wouldn't be surprised if certain countries were colluding behind the 126 00:06:41,160 --> 00:06:44,480 scenes to make it as uncomfortable for Trump as possible. Sure, 127 00:06:45,160 --> 00:06:47,560 I would actually be surprised if that wasn't the case. 128 00:06:47,920 --> 00:06:50,879 But regardless of all of that, what can he do 129 00:06:51,399 --> 00:06:55,800 put something forward? Like I said, that's substantive, It doesn't 130 00:06:55,839 --> 00:06:58,360 need to be huge. Doesn't he be a drastic cut? 131 00:06:58,600 --> 00:07:01,560 If he could hold spending flat your over year, that 132 00:07:01,600 --> 00:07:05,480 would be an improvement, and he could start bipartisan entitlement 133 00:07:05,519 --> 00:07:06,319 reform talks. 134 00:07:06,680 --> 00:07:07,879 Speaker 4: He could do something. 135 00:07:07,879 --> 00:07:11,399 Speaker 3: He could do things right, yep, But I don't think 136 00:07:11,439 --> 00:07:16,120 you're going to do them unless you look he's got 137 00:07:16,160 --> 00:07:19,399 in my opinion, looking at the setup right now, he's. 138 00:07:19,240 --> 00:07:20,480 Speaker 4: Got one of two choices. 139 00:07:20,879 --> 00:07:25,240 Speaker 3: Okay, he can look at inflation getting higher and interest 140 00:07:25,319 --> 00:07:29,360 rates getting really uncomfortable more so than they are now, 141 00:07:29,839 --> 00:07:33,040 or a short recession, hopefully short. It should be short too, 142 00:07:33,079 --> 00:07:37,199 because US households are in good places financially. It wouldn't 143 00:07:37,240 --> 00:07:41,560 be huge, it wouldn't be deep. There's not a tremendous 144 00:07:41,560 --> 00:07:44,000 amount of leverage in the economy that you're really worried about. 145 00:07:44,079 --> 00:07:47,519 It's not an seven eight setup, so it should be 146 00:07:47,600 --> 00:07:50,800 fairly shallow. But he needs the recession to bring in, 147 00:07:51,120 --> 00:07:54,279 and then once the back end of the curve starts 148 00:07:54,279 --> 00:07:57,680 coming in and you see unemployment going up, then he 149 00:07:57,759 --> 00:08:00,120 can cut rates. And I don't think at that point 150 00:08:00,120 --> 00:08:02,319 the back end of the curve would revolt, right, It 151 00:08:02,319 --> 00:08:03,920 would probably just go down further. 152 00:08:03,879 --> 00:08:04,240 Speaker 1: Got it. 153 00:08:04,279 --> 00:08:05,879 Speaker 4: So that's that's what I would tell him. 154 00:08:05,920 --> 00:08:08,920 Speaker 1: That makes sense. I did something for you. You've done 155 00:08:08,959 --> 00:08:10,639 so much for me, and this is a minor thing. 156 00:08:10,680 --> 00:08:13,240 It did for you when you started taking mass times 157 00:08:13,360 --> 00:08:16,319 you said you and your wife were having all of 158 00:08:16,319 --> 00:08:18,160 a sudden you were sleeping better remember that? 159 00:08:18,720 --> 00:08:20,879 Speaker 4: Yeah, yeah, yeah, I take him every night now, right, yep. 160 00:08:21,000 --> 00:08:23,680 Speaker 1: So I asked Wade a lightheart. He's one of the 161 00:08:24,160 --> 00:08:26,600 founders and one of the CEO's kind of co CEO 162 00:08:26,720 --> 00:08:30,800 situation at Boptimizers, and Wade sort of the research guy. 163 00:08:30,879 --> 00:08:33,519 He really goes and he does this stuff in Bosnia. 164 00:08:33,799 --> 00:08:37,240 They've got a research lab. They're really interesting. So he said, yeah, 165 00:08:37,240 --> 00:08:39,080 the bloating is probably part of it. But I didn't 166 00:08:39,120 --> 00:08:41,240 know this that if you go to bed with a 167 00:08:41,240 --> 00:08:43,639 bunch of protein in your belly, and you know, I 168 00:08:43,679 --> 00:08:45,559 eat three hundred and sixty grams of protein every day, 169 00:08:45,600 --> 00:08:48,639 three hundred and sixty grams, I know, it's madness. 170 00:08:49,039 --> 00:08:50,360 Speaker 4: We don't realize how much that is. 171 00:08:50,639 --> 00:08:53,320 Speaker 1: That's so much stinking protein, and unlike a days like 172 00:08:53,360 --> 00:08:55,159 today's a full rest day where I don't get to 173 00:08:55,200 --> 00:08:58,879 work out a lot at all. It's gross. So I've 174 00:08:58,919 --> 00:09:00,720 got a bunch of hacks for that we can talk about. 175 00:09:00,759 --> 00:09:02,759 But so I asked Wade, and you already told me. 176 00:09:02,879 --> 00:09:05,120 When you go to beds and sleep with a bunch 177 00:09:05,120 --> 00:09:10,399 of undigested protein, your body creates these basically toxins, and 178 00:09:10,480 --> 00:09:12,639 one of them actually gets in your mind. It's like 179 00:09:12,679 --> 00:09:15,919 a neurotoxin. It makes your mind wander. So I don't 180 00:09:15,919 --> 00:09:17,840 know about I call it busy brain. You're trying to 181 00:09:17,879 --> 00:09:19,840 sleep and your mind's all over and you can't like 182 00:09:19,879 --> 00:09:22,879 focus the yeah right, yeah, So he said that is 183 00:09:23,039 --> 00:09:26,399 that's a known side effect of having this like this 184 00:09:26,639 --> 00:09:30,360 undigested protein in your system. So last night I did it. 185 00:09:30,440 --> 00:09:33,480 I take my mass sims throughout the day. I took 186 00:09:33,559 --> 00:09:35,840 some extra last night because weirdly, I had a bunch 187 00:09:35,879 --> 00:09:39,960 of protein before I slept. Dude, I was so out 188 00:09:40,320 --> 00:09:42,840 like and it was a different form of sleep. The 189 00:09:42,840 --> 00:09:46,639 busy brain was gone. So I'm I'm I actually thank 190 00:09:46,679 --> 00:09:48,639 you for bringing up And that's what that's what Wade 191 00:09:48,639 --> 00:09:49,240 says is happening. 192 00:09:49,440 --> 00:09:49,639 Speaker 4: Guys. 193 00:09:49,679 --> 00:09:52,120 Speaker 1: If you are not sleeping well and you want to 194 00:09:52,159 --> 00:09:54,240 maintain the lean muscle you have and you want any 195 00:09:54,240 --> 00:09:57,759 shot at all at putting on muscle, don't dig yourself 196 00:09:57,799 --> 00:09:59,919 a hole steward the lean muscle you have. Get it 197 00:10:00,080 --> 00:10:02,159 in the gym, and we could talk later about what 198 00:10:02,240 --> 00:10:04,679 to do in the gym, but use this simple hackets 199 00:10:04,679 --> 00:10:07,679 mass simes go to Boptimizers dot com slash Todd. Use 200 00:10:07,759 --> 00:10:09,919 promo code Todd. You get temperasont off all their products, 201 00:10:09,960 --> 00:10:12,639 including mass signs, and just go ahead and subscribe because 202 00:10:12,639 --> 00:10:16,200 then you're gonna get exclusive discounts, exclusive gifts, and exclusive 203 00:10:16,240 --> 00:10:19,879 information packs from Matt Wood. It's Boptimizers dot com slash 204 00:10:19,919 --> 00:10:22,240 Todd promo code Tod. All right, I want to get 205 00:10:22,279 --> 00:10:27,320 to a comparison between you and Bulwark in the world, 206 00:10:27,440 --> 00:10:29,600 because it happens that I was getting a review, a 207 00:10:29,600 --> 00:10:32,080 little mini review, because we've got our money with you, 208 00:10:32,080 --> 00:10:33,440 most of the money. You wouldn't let us put all 209 00:10:33,480 --> 00:10:35,279 your money with you because you said, what if you 210 00:10:35,320 --> 00:10:37,559 have a bad year. I want to get into that, 211 00:10:37,600 --> 00:10:39,639 but let me start here with Robert Kawasaki. You know 212 00:10:39,679 --> 00:10:43,960 that guy rich Tadgan. Okay, so here's what he wrote. 213 00:10:44,120 --> 00:10:47,960 And I didn't ask Alex earlier to have some You're 214 00:10:47,960 --> 00:10:49,799 gonna be good here like the Walking Dead music. I 215 00:10:49,840 --> 00:10:51,399 just don't think you have a chance to queue that up. 216 00:10:51,399 --> 00:10:53,720 But let's put that in a post since you and 217 00:10:53,799 --> 00:10:55,879 I recording. I shouldn't even have said that, but let's 218 00:10:55,879 --> 00:10:58,440 just going to be in the background. Here's Kawasaki. The 219 00:10:58,600 --> 00:11:01,120 end is here. What if you threw a party and 220 00:11:01,200 --> 00:11:04,399 know it showed up. This is what happened yesterday. The 221 00:11:04,440 --> 00:11:06,360 FED had an auction for US bonds and no one 222 00:11:06,399 --> 00:11:09,320 showed up. So the FED quietly bought fifty billion of 223 00:11:09,360 --> 00:11:12,120 its own fake money with fake money. The party is over. 224 00:11:12,240 --> 00:11:15,039 Hyperinflation is here. Millions young and old to be wiped 225 00:11:15,039 --> 00:11:18,519 out financially. Good news. Gold will go to twenty five thousand, 226 00:11:18,559 --> 00:11:21,639 silver to seventy bitcoin to five hundred thousand to one million. 227 00:11:22,120 --> 00:11:24,559 The big print, the title of Larry Leopard's latest book 228 00:11:24,600 --> 00:11:27,240 is on. Please read it. The end I have been 229 00:11:27,279 --> 00:11:31,200 warning about is here. May God have mercy on our souls. 230 00:11:31,559 --> 00:11:34,639 So we got to sell, Zach, we gotta sell. 231 00:11:35,559 --> 00:11:37,120 Speaker 4: I'm not sure sell. Yeah. 232 00:11:37,559 --> 00:11:41,519 Speaker 3: So two things here, okay, and I and nothing. I 233 00:11:41,559 --> 00:11:43,840 think that his book Rich Dad, Poor Dad, helped a 234 00:11:43,879 --> 00:11:46,279 ton of people. I think it was a really smart 235 00:11:46,320 --> 00:11:50,399 book and really a brilliant way to frame it up to. 236 00:11:50,720 --> 00:11:52,440 I think he's done a lot of good for a 237 00:11:52,519 --> 00:11:55,919 lot of people. Okay, that's that's point number one. Point 238 00:11:56,000 --> 00:11:58,759 number two. I really don't know even where to start 239 00:11:58,799 --> 00:12:01,480 about how wrong he is on everything. And for the record, 240 00:12:02,000 --> 00:12:04,200 I know Larry Leppard, he and I follow each other 241 00:12:04,240 --> 00:12:07,879 on Twitter. I don't know him personally, but like, I'm 242 00:12:07,919 --> 00:12:08,720 not talking out of turn. 243 00:12:08,840 --> 00:12:13,679 Speaker 4: I know these guys. Okay, everything he said is complete garbage, 244 00:12:14,159 --> 00:12:15,360 all right, really just. 245 00:12:15,679 --> 00:12:19,360 Speaker 3: Yes, So I'm gonna now. I don't think he's doing 246 00:12:19,440 --> 00:12:22,399 it on purpose. But the biggest lesson I want people 247 00:12:22,440 --> 00:12:25,240 to learn. And I'm not the only source of unvarnered 248 00:12:25,279 --> 00:12:29,240 financial information. But this is why a spec you need 249 00:12:29,320 --> 00:12:32,240 to be even more careful about financial news than you 250 00:12:32,279 --> 00:12:36,240 are political news. And the reason why is because there 251 00:12:36,320 --> 00:12:40,200 is a certain allure about talking about financial things, even 252 00:12:40,240 --> 00:12:42,799 if you have no clue what you're talking about. And 253 00:12:42,879 --> 00:12:45,840 typically the guys that are the most willing to talk 254 00:12:45,879 --> 00:12:48,440 about financial things are the ones that don't know what 255 00:12:48,480 --> 00:12:52,600 they're talking about, and if they express any level of certainty, 256 00:12:53,559 --> 00:12:56,440 that is the proof that they don't know what they're 257 00:12:56,440 --> 00:13:00,960 talking about. So, first of all, that that is not true. 258 00:13:01,399 --> 00:13:04,759 We've had good bond auctions, We've had bad bond auctions. 259 00:13:05,120 --> 00:13:08,000 The FED buying bonds had. 260 00:13:07,960 --> 00:13:09,840 Speaker 4: Nothing to do with that. That. 261 00:13:09,919 --> 00:13:14,360 Speaker 3: The FED was not net buying bonds. They were reloading 262 00:13:14,480 --> 00:13:16,399 up bonds that had just expired. 263 00:13:17,200 --> 00:13:18,759 Speaker 4: Okay, so they got. 264 00:13:18,559 --> 00:13:21,039 Speaker 3: Their money back from the Treasury just like you do 265 00:13:21,120 --> 00:13:24,399 when a bond expires, and they rolled it into new bonds, 266 00:13:24,960 --> 00:13:28,759 so the percentage of bonds that they owned did not 267 00:13:28,840 --> 00:13:32,559 go up. Okay, So to say the Fed bot not true, 268 00:13:32,639 --> 00:13:36,039 it's just not true. Second of all, that purchase had 269 00:13:36,120 --> 00:13:40,559 absolutely nothing to do with the bond auction, and you're 270 00:13:40,600 --> 00:13:42,519 gonna see good bond auctions. As a matter of fact, 271 00:13:42,559 --> 00:13:44,799 we had a bond auction a month ago that was 272 00:13:44,840 --> 00:13:49,399 shockingly good. Okay, nothing, nothing has happened over the last 273 00:13:49,480 --> 00:13:51,559 thirty days that have made people feel like we need 274 00:13:51,600 --> 00:13:56,639 to pan excel. Third, inflation is going down and unless 275 00:13:56,679 --> 00:13:59,879 the FED cuts, it's gonna continue to go down. Now 276 00:14:00,039 --> 00:14:03,200 you're going to see it hop up momentarily on these tariffs. 277 00:14:04,200 --> 00:14:08,159 But remember that's not that's that's that's inflation because the 278 00:14:08,200 --> 00:14:10,720 cost of a good went up. But it's not inflation 279 00:14:10,879 --> 00:14:14,399 because it's not going to continue to rise, right like 280 00:14:14,879 --> 00:14:16,639 you know what I mean. That's the pernicious part of 281 00:14:16,639 --> 00:14:19,159 inflation is that it typically gets away from you and 282 00:14:19,200 --> 00:14:20,960 just keeps eroding and e roading and a roating. 283 00:14:22,120 --> 00:14:23,639 Speaker 4: That's not what that's not what a tariff is. 284 00:14:23,720 --> 00:14:25,519 Speaker 3: It's a one time deal, right unless we want to 285 00:14:25,600 --> 00:14:28,200 keep upping the tariff by two percent a month, which 286 00:14:28,399 --> 00:14:31,960 you know that's at this point right now, that's not 287 00:14:32,240 --> 00:14:35,559 what we're looking at. But this is just a classic example. 288 00:14:35,759 --> 00:14:40,399 And I look, I believe that he believes what he's saying. Right, 289 00:14:41,279 --> 00:14:45,399 Just the end is here again, where's everybody going, buddy? 290 00:14:46,000 --> 00:14:50,919 Speaker 1: Like the literal end that we're going to be transported up? 291 00:14:51,080 --> 00:14:53,840 The Lord Jesus is coming for the church. He knows 292 00:14:53,840 --> 00:14:55,360 he's the one who knows the end. I think he 293 00:14:55,399 --> 00:14:56,360 means something else. 294 00:14:57,200 --> 00:14:58,639 Speaker 4: Oh, he for sure. 295 00:14:58,759 --> 00:15:01,759 Speaker 3: I mean he's talking financial, right, But my whole point 296 00:15:01,840 --> 00:15:05,039 is if the end is near and hyperinflation is here, 297 00:15:05,080 --> 00:15:06,919 that means that everybody's getting rid of the dollar. Where 298 00:15:06,919 --> 00:15:10,639 are they going bitcoin? Come on, no, they're not Like 299 00:15:10,679 --> 00:15:14,759 that's a ridiculous assertion. Would hyperinflation drive a bit coin? Sure, 300 00:15:14,879 --> 00:15:18,440 we've already seen that. But that's what I'm saying is, 301 00:15:19,159 --> 00:15:22,360 if you're talking about the collapse of the world reserve currency, 302 00:15:22,639 --> 00:15:25,759 there has to be something else to take its place. Bitcoin. 303 00:15:25,840 --> 00:15:29,320 Isn't that it's a deflationary asset. Gold isn't that there's 304 00:15:29,399 --> 00:15:32,320 not enough of it? I mean, gold will probably continue 305 00:15:32,360 --> 00:15:34,080 to go up because of all the debts and printing 306 00:15:34,120 --> 00:15:36,519 and all that kind of stuff, But you still need 307 00:15:36,559 --> 00:15:38,840 a currency. You can't know, we're not gonna walk around 308 00:15:38,879 --> 00:15:42,480 carve enough chunks off our gold bricks to pay each other, right. 309 00:15:42,240 --> 00:15:46,240 Speaker 4: Like, I mean, anyway, this is do we need to do? 310 00:15:46,480 --> 00:15:48,159 Speaker 3: Yes, it's no news. We need to deal with our 311 00:15:48,159 --> 00:15:50,919 fiscal house. But to sit there and argue that the 312 00:15:51,000 --> 00:15:53,320 dollar's about ready to plummet, nat, I just it's not 313 00:15:53,360 --> 00:15:53,799 gonna happen. 314 00:15:53,840 --> 00:15:55,879 Speaker 4: And he's just he'ps talking out of turn. 315 00:15:55,960 --> 00:15:58,080 Speaker 1: Okay, good enough. And then I want to get into 316 00:15:58,159 --> 00:16:00,799 something that I think is unique about you because I've 317 00:16:00,840 --> 00:16:03,559 known you long time now and I see something in 318 00:16:03,559 --> 00:16:06,240 you during times like this, and I can observe it 319 00:16:06,279 --> 00:16:08,559 because we're friends. I don't know if people who don't 320 00:16:08,559 --> 00:16:10,720 get to spend as much time around you don't. It 321 00:16:10,720 --> 00:16:13,080 has to do with the economy and bulwark. So bring 322 00:16:13,080 --> 00:16:15,919 this up in just a second. This is a time 323 00:16:16,120 --> 00:16:18,200 of the golden age. What Trusident Trump is trying to 324 00:16:18,240 --> 00:16:21,600 create is an economic golden edge. And Zach is talking 325 00:16:21,639 --> 00:16:24,080 about his attempts to do this and this minor recession, 326 00:16:24,120 --> 00:16:26,759 we hope this quick recession minor and quick. We hope 327 00:16:27,240 --> 00:16:30,399 my friend Tim kruk Shank wanted to honor President Trump's 328 00:16:30,399 --> 00:16:32,759 decision to try to get us back to a golden age, 329 00:16:33,120 --> 00:16:35,559 so he created a bag of coffee. The whole thing 330 00:16:35,639 --> 00:16:39,080 is gold. It's a proud American eagle once again spreading 331 00:16:39,080 --> 00:16:41,799 its wings over America. Tim is super high in this 332 00:16:41,919 --> 00:16:44,159 bag and the coffee within it. Of course, the bag 333 00:16:44,200 --> 00:16:47,519 says God Country Team on it. So make this your 334 00:16:47,759 --> 00:16:50,679 entree into bone Frog. If you've never tried the coffee, 335 00:16:51,000 --> 00:16:53,720 make this your entree as a way to recognize what 336 00:16:53,759 --> 00:16:55,679 the President's trying to do. And of course to try 337 00:16:55,679 --> 00:16:58,519 this coffee created by a forming Navy seal who all 338 00:16:58,559 --> 00:17:00,200 he did for you. I mean it's not like him 339 00:17:00,240 --> 00:17:03,399 did much for you. He just went to war three times. 340 00:17:03,519 --> 00:17:05,720 But I mean, you know, it's just war, just the 341 00:17:05,799 --> 00:17:06,359 Navy seal. 342 00:17:06,359 --> 00:17:07,279 Speaker 4: It's not like that. 343 00:17:07,440 --> 00:17:09,960 Speaker 1: So or you could just say no, I just buy 344 00:17:10,039 --> 00:17:12,359 coffee from commun It's good to Bonefrog Coffee dot com 345 00:17:12,400 --> 00:17:14,319 slash Todd. Use promo code todd to get ten percent 346 00:17:14,359 --> 00:17:16,759 off your first purchase and then plan to go back 347 00:17:16,839 --> 00:17:19,799 very quickly and subscribe to the coffee. Bonefrog Coffee dot 348 00:17:19,839 --> 00:17:22,759 com slash Todd promo code Todd. Here's something I noticed 349 00:17:22,759 --> 00:17:24,799 about you, zach and this is anyone call you Zachary. 350 00:17:24,960 --> 00:17:27,559 Is your full name, Zachary. 351 00:17:27,680 --> 00:17:30,359 Speaker 4: It's not good. The only time my wife. 352 00:17:32,200 --> 00:17:36,200 Speaker 3: Called Zachary is yeah, usually when she's exasperated with me 353 00:17:36,319 --> 00:17:36,839 or angry with you. 354 00:17:37,000 --> 00:17:39,400 Speaker 4: Yeah, that's that's the only time I get called Jachary. 355 00:17:39,480 --> 00:17:39,720 Speaker 2: Yeah. 356 00:17:39,759 --> 00:17:42,240 Speaker 1: My wife is a lot of patience with me and 357 00:17:42,519 --> 00:17:45,480 is as over the years become a very good communicator 358 00:17:45,480 --> 00:17:47,799 with me, and and praise God. And but there is 359 00:17:47,839 --> 00:17:50,599 a when she emphasizes the duh Todd. 360 00:17:50,880 --> 00:17:52,279 Speaker 4: Yeah, oh yeah. 361 00:17:52,119 --> 00:17:55,119 Speaker 1: You know right right, you know right, there's there's the 362 00:17:55,119 --> 00:17:57,000 way to say hey, Todd, and then there's the Todd. 363 00:17:58,039 --> 00:18:00,519 And that's at that point. Now, Okay, I got it. 364 00:18:01,240 --> 00:18:07,079 I noticed something about you. The whackier, the more volatile, uh, 365 00:18:07,240 --> 00:18:10,400 the more up and down, the more craziness. Like you know, 366 00:18:10,480 --> 00:18:13,440 Kwisake's saying the end is near. President Trump is saying 367 00:18:13,440 --> 00:18:17,000 the greatest economy we've ever seen is here. You've got 368 00:18:17,000 --> 00:18:19,799 the Federal Reserve saying conjuring money. We don't do that. 369 00:18:19,839 --> 00:18:23,119 This is so the more things seem volatile to me, 370 00:18:24,440 --> 00:18:27,680 the more I see you in a good mood. And 371 00:18:28,519 --> 00:18:31,839 there's something about the way you run your fund that 372 00:18:31,960 --> 00:18:35,759 this seems like this is Bulwark's time, right, and this 373 00:18:35,799 --> 00:18:38,519 is when you shine? So why and is that true? 374 00:18:39,799 --> 00:18:41,799 Speaker 4: Yeah? Yeah, I mean so. 375 00:18:43,240 --> 00:18:47,319 Speaker 3: We have always had our biggest outperformance in the craziest markets. 376 00:18:48,960 --> 00:18:52,680 And I think that the reason why is because most 377 00:18:52,720 --> 00:18:56,799 of the time investing is a fairly mundane practice, you 378 00:18:56,799 --> 00:18:58,799 know what I mean, You're just you're you're looking at 379 00:18:58,920 --> 00:19:01,039 and you have these skills and you're looking at the 380 00:19:01,039 --> 00:19:03,599 world and you're doing all these things, and most of 381 00:19:03,640 --> 00:19:08,680 the time a lot of those skills aren't needed that much, right, 382 00:19:08,799 --> 00:19:12,200 Like you know, you know, when you're just looking at 383 00:19:12,200 --> 00:19:14,039 the S and P going up fifteen to seventeen percent 384 00:19:14,079 --> 00:19:15,720 every single year, maybe it beat it by a couple 385 00:19:15,720 --> 00:19:18,359 percent here and there or whatever, but that's that's not 386 00:19:18,400 --> 00:19:20,920 really where the big swings happen and the and the 387 00:19:20,960 --> 00:19:25,400 big gains happen. You know, the most beautiful thing or 388 00:19:25,440 --> 00:19:30,079 the opportunities to make ridiculously big amounts of money and 389 00:19:30,079 --> 00:19:34,880 relatively short times, and that always comes in tumultuous times, right. 390 00:19:36,240 --> 00:19:39,359 And the other reason why we're so excited about it 391 00:19:39,400 --> 00:19:41,960 now is that I very much believe that you have 392 00:19:42,079 --> 00:19:45,359 international regime shift going on in markets across the world. 393 00:19:45,519 --> 00:19:47,960 Speaker 1: And geam shift in markets. 394 00:19:48,359 --> 00:19:52,079 Speaker 3: Yeah, just so for remember we were saying how the 395 00:19:52,240 --> 00:19:54,680 US stock market has become seventy percent of all stock 396 00:19:54,720 --> 00:19:56,039 market globalization in the world. 397 00:19:56,079 --> 00:19:57,480 Speaker 4: Capital capitalization in the world. 398 00:19:57,559 --> 00:20:01,200 Speaker 3: Right, so we make up twenty percent economicivity, but our stock. 399 00:20:00,960 --> 00:20:03,279 Speaker 4: Market is seventy percent of the global value. That is 400 00:20:03,319 --> 00:20:05,400 by far and away a record for us. That is 401 00:20:05,440 --> 00:20:07,759 by far and away a record for anybody. 402 00:20:07,759 --> 00:20:10,440 Speaker 3: For those of you out there that remember the dominance 403 00:20:10,440 --> 00:20:13,559 of Japanese markets in the eighties and how everybody couldn't 404 00:20:13,559 --> 00:20:16,319 get their money into Japan fast enough and Japanese stocks 405 00:20:16,319 --> 00:20:17,279 couldn't quit going up. 406 00:20:17,559 --> 00:20:18,400 Speaker 4: At the peak in. 407 00:20:18,440 --> 00:20:23,000 Speaker 3: Eighty nine, their stock market made up thirty nine percent 408 00:20:23,119 --> 00:20:26,079 of stock market capitalization around the world. Today we're at 409 00:20:26,119 --> 00:20:30,440 seventy Just shy asa, okay. So what that tells you this, 410 00:20:30,640 --> 00:20:33,680 One of the reasons we're so excited is we believe 411 00:20:33,720 --> 00:20:39,079 a regime shift is coming, and the opportunity is because 412 00:20:39,160 --> 00:20:41,920 everybody was on one side of the ship. The same 413 00:20:42,039 --> 00:20:44,319 thing that is the thing that looks very scary to us, 414 00:20:44,720 --> 00:20:50,039 is the same thing that is creating unbelievable value opportunities 415 00:20:50,400 --> 00:20:54,079 in places around the world, and look, some are sketchy, 416 00:20:54,359 --> 00:20:59,400 some aren't. Right, there's there's some very great attractive locales 417 00:20:59,440 --> 00:21:03,240 around the world for investor money, and there's no money 418 00:21:03,240 --> 00:21:06,160 in those markets. And so we're up, you know, nine 419 00:21:06,240 --> 00:21:09,039 or ten percent so far this year. And it hasn't 420 00:21:09,119 --> 00:21:12,640 been by any clever trades or big shorts or we've 421 00:21:12,640 --> 00:21:15,039 had a couple of small good short bets this year too, 422 00:21:15,400 --> 00:21:17,440 but it's just been because we own a bunch of 423 00:21:17,519 --> 00:21:22,559 really cheap companies that are doing well. And so what 424 00:21:22,599 --> 00:21:25,960 that's telling me is that the market is starting to 425 00:21:25,960 --> 00:21:29,880 pay attention to fundamentals again. Now that gets me excited. 426 00:21:30,240 --> 00:21:32,279 When you got a mark, yeah, when you got a 427 00:21:32,279 --> 00:21:36,279 market where Carvana and Tesla are going up ten percent 428 00:21:36,319 --> 00:21:37,279 a day and all that kind. 429 00:21:37,119 --> 00:21:40,000 Speaker 1: Of stuffy car so much it's so bad. 430 00:21:40,240 --> 00:21:43,440 Speaker 3: Well they so they just had their guess, so everybody's 431 00:21:43,480 --> 00:21:47,119 all excited about Carvana. Guess what insiders did, sold another 432 00:21:47,279 --> 00:21:51,279 one point seven billion dollars worth of stock one point 433 00:21:51,319 --> 00:21:54,319 seven billion, So you know how you know management's really 434 00:21:54,359 --> 00:21:56,720 pumped about the future of a company. They're selling them 435 00:21:56,960 --> 00:21:59,920 as fast as they can when they've dumped about se 436 00:22:00,000 --> 00:22:02,920 seventy five percent of their equity exposure in that company. 437 00:22:03,200 --> 00:22:05,319 Speaker 4: That means you should go in there and buy it. Right. 438 00:22:05,839 --> 00:22:08,400 Speaker 3: So in environments like that where nobody cares and people 439 00:22:08,440 --> 00:22:12,200 are just betting on stocks, I think the more experienced 440 00:22:12,200 --> 00:22:14,839 you are, the more disadvantaged you are. Yeah, but when 441 00:22:14,880 --> 00:22:18,960 you start getting into you know, a giant regime shift 442 00:22:19,359 --> 00:22:23,079 and now fundamentals and cash flows matter. Yeah, I think 443 00:22:23,119 --> 00:22:25,279 in that arena, we've got a huge advantage. And I'm 444 00:22:25,319 --> 00:22:26,119 licking my chops. 445 00:22:26,279 --> 00:22:30,319 Speaker 1: Yeah, yeah, And I want to provide now a countervailing 446 00:22:30,359 --> 00:22:32,799 example to what you're doing. You're talking about shorts and 447 00:22:32,839 --> 00:22:35,599 not doing a lot of those and good fundamentals. I 448 00:22:35,640 --> 00:22:38,519 want to go through a couple of unusual whale deals 449 00:22:38,880 --> 00:22:41,680 and I want you to help us understand these, at 450 00:22:41,759 --> 00:22:43,279 least one of them. And then I want to talk 451 00:22:43,279 --> 00:22:46,160 about US household income and President Trump and the tax 452 00:22:46,160 --> 00:22:48,039 will try to get to that, but I want you 453 00:22:48,119 --> 00:22:51,279 to decode this this series of puts and explain that 454 00:22:51,319 --> 00:22:53,640 to people who don't know what puts are, just comes 455 00:22:53,640 --> 00:22:55,640 from unusual whales. We'll get to that in just a second. 456 00:22:55,920 --> 00:22:58,920 Just reminder that's in June, that's coming up around the corner. 457 00:22:59,400 --> 00:23:00,880 Zach and I get to be in Port of Art 458 00:23:00,880 --> 00:23:05,400 to Mexico June seventh through the eleventh, and Zach is 459 00:23:05,400 --> 00:23:08,319 getting treatment this time. I'm not is not much I need. 460 00:23:08,559 --> 00:23:10,720 I got my back done, My back feels fantastic, got 461 00:23:10,759 --> 00:23:15,400 my first cleaning jerks in. I'm gonna I did my 462 00:23:15,440 --> 00:23:17,920 first overhead work. My back feels so much better. And 463 00:23:17,960 --> 00:23:20,880 I'm not even to the tissue building stage. I'm just 464 00:23:20,920 --> 00:23:25,880 exiting the the inflammation reduction stage from renew when I 465 00:23:25,880 --> 00:23:28,319 went down there a few weeks ago. I guess it's 466 00:23:28,319 --> 00:23:30,359 not like a month ago. So Zach and are going 467 00:23:30,440 --> 00:23:32,640 to be down there, and you invited to join us 468 00:23:32,680 --> 00:23:35,240 if you're in the treatment pipeline, meaning you are lined 469 00:23:35,319 --> 00:23:38,519 up to get stem cells. Now see if you can 470 00:23:38,559 --> 00:23:40,920 bump that up and go have dinner with me and Zach. 471 00:23:40,960 --> 00:23:42,839 I'm buying the first night, Zach's buying the second night. 472 00:23:42,839 --> 00:23:45,240 There's already people down there for that. But let me 473 00:23:45,279 --> 00:23:48,400 say this about the treatment as well. I got my 474 00:23:48,519 --> 00:23:52,680 tickets for a family member yesterday, first class West Coast 475 00:23:52,759 --> 00:23:59,440 to Portavarta six hundred bucks. Insane stink in first class 476 00:23:59,480 --> 00:24:02,599 for a coach price. So if you've been delaying this 477 00:24:02,640 --> 00:24:05,240 because of travel. Go look at that and understand it's 478 00:24:05,279 --> 00:24:08,400 not just stem cells. They've got a world class device 479 00:24:08,440 --> 00:24:12,200 down there to check your heart. It's happened three times 480 00:24:12,880 --> 00:24:15,759 that someone went down and one case, the lady was 481 00:24:15,799 --> 00:24:18,640 in there for treatment, her husband was They checked her 482 00:24:18,640 --> 00:24:21,599 heart because she was having trouble sleeping and feeling short 483 00:24:21,640 --> 00:24:24,039 of breath. She had to have open heart surgery the 484 00:24:24,039 --> 00:24:27,720 next day and her cardiologists and others had said, you're fine, 485 00:24:28,359 --> 00:24:31,599 You're absolutely fine. So there's that service as well, and 486 00:24:31,640 --> 00:24:34,079 then we just have fun down there. It's renew EU 487 00:24:34,119 --> 00:24:38,400 E dot Healthcare. If you've got something urgent like arthritis, 488 00:24:38,400 --> 00:24:41,119 it's killing you, no one's able to help you. You 489 00:24:41,240 --> 00:24:43,160 might see if you can get in the treatment pipeline, 490 00:24:43,200 --> 00:24:45,839 but you would have to go and get your MRI today, 491 00:24:46,400 --> 00:24:50,079 like really quickly. So again it's renew rn U DOOT Healthcare. 492 00:24:50,119 --> 00:24:52,880 All their stem cells come only from a bilical cord. 493 00:24:52,880 --> 00:24:56,440 It's great, great company, right, Zach. And so I should 494 00:24:56,480 --> 00:24:58,160 let you say something about that. I'm jazz. I know 495 00:24:58,200 --> 00:25:00,960 you said your golf clubs could smell it. Now are 496 00:25:01,000 --> 00:25:03,599 you gonna be okay in the hyperbaric oxygen chamber? Because 497 00:25:03,599 --> 00:25:06,200 a friend of mine's going down, and she's kind of said, 498 00:25:06,240 --> 00:25:07,720 she's not gonna go in the chamber. We're gonna see 499 00:25:07,720 --> 00:25:09,720 if we can, you know, talk her into it. But 500 00:25:09,960 --> 00:25:11,319 you're gonna be okay in that thing, right. 501 00:25:12,039 --> 00:25:14,160 Speaker 4: I'd sleep in that second with Loton. 502 00:25:16,319 --> 00:25:19,640 Speaker 3: Those things are so good for you, man, that oxygen, Like, 503 00:25:19,680 --> 00:25:22,519 I want to get one for my house. I honestly 504 00:25:22,640 --> 00:25:23,799 I should get one for my house. 505 00:25:24,039 --> 00:25:25,920 Speaker 1: I'm so good for you. I don't want to talk 506 00:25:25,920 --> 00:25:27,920 out of school, so I won't say which professional golfer 507 00:25:27,920 --> 00:25:30,759 I've met down there, because I almost will guarantee you 508 00:25:30,920 --> 00:25:33,640 because you're a golf fan. I'll'll almost guarantee you you're 509 00:25:33,640 --> 00:25:35,119 gonna be walking the hallways. You're gonna be like, oh 510 00:25:35,160 --> 00:25:37,920 my gosh, like you're gonna be. There's always professional golfer 511 00:25:38,000 --> 00:25:39,880 in there. I know one of them who has one 512 00:25:39,880 --> 00:25:44,240 of those in his house. He also had and he 513 00:25:44,359 --> 00:25:48,599 slept in it for six months, like every night for 514 00:25:48,720 --> 00:25:52,480 six months because he was so so injured and he 515 00:25:52,559 --> 00:25:55,480 got used to it. I'll tell you offline who it is. 516 00:25:56,160 --> 00:25:59,119 But yeah, really fascinating. So let me run this by you. 517 00:25:59,599 --> 00:26:03,039 Unusual whales. Help us help this is the thing. Explain 518 00:26:03,079 --> 00:26:05,480 it to us like we're kindergarteners. This is what unusual 519 00:26:05,519 --> 00:26:08,799 whales rights. I mean, it's easy to see the big picture, 520 00:26:08,839 --> 00:26:12,680 but explain the details, like we're kindergarteners. This is truly egregious. 521 00:26:12,720 --> 00:26:15,039 On May thirteenth, and you can see this on the screen, 522 00:26:15,480 --> 00:26:19,480 someone put twenty five million UM in premium ten thousand 523 00:26:19,480 --> 00:26:24,920 times volume in United Healthcare, three hundred dollars puts expiring 524 00:26:25,000 --> 00:26:28,799 nine to nineteen, twenty twenty five. Then news of the 525 00:26:28,839 --> 00:26:32,039 DOJ investigating for fraud came out. United Healthcare dropped and 526 00:26:32,160 --> 00:26:35,039 is down fifty percent in the last month. This trader 527 00:26:35,119 --> 00:26:40,920 is up eighty million dollars unusual. So the puts are 528 00:26:40,960 --> 00:26:43,400 basically he was betting that the stock would go down 529 00:26:43,440 --> 00:26:44,720 in that period of time. Is that right? 530 00:26:44,799 --> 00:26:49,880 Speaker 3: Or that investor was, yeah, the weird So there's two things. 531 00:26:49,920 --> 00:26:53,680 Actually to be fair to that trader, it's not the thing. 532 00:26:53,960 --> 00:26:56,480 It doesn't reek as bad as some of the trades 533 00:26:56,480 --> 00:26:58,400 I've seen, And the reason for it is. 534 00:26:58,359 --> 00:27:01,240 Speaker 4: The duration or what we call the theta or the 535 00:27:01,279 --> 00:27:03,839 time left on the putskay, meaning. 536 00:27:05,279 --> 00:27:09,279 Speaker 3: If like so if if you and I if we 537 00:27:09,400 --> 00:27:14,640 knew about that announcement and we knew that that announcement 538 00:27:14,720 --> 00:27:16,119 was coming out in the next two weeks. 539 00:27:16,200 --> 00:27:17,039 Speaker 4: Yeah, Okay. 540 00:27:17,400 --> 00:27:20,119 Speaker 3: What we would want to do is we would want 541 00:27:20,119 --> 00:27:23,279 to be probably by puts that expire in three weeks. 542 00:27:23,559 --> 00:27:26,640 We want as little time value on that option, because 543 00:27:26,640 --> 00:27:29,319 the closer you are to expiration on the option, the 544 00:27:29,440 --> 00:27:33,160 cheaper the option becomes, right because there's less time left 545 00:27:33,160 --> 00:27:38,720 on it. So that the time on that option doesn't 546 00:27:38,759 --> 00:27:40,079 look suspicious. 547 00:27:40,720 --> 00:27:43,720 Speaker 4: What does look suspicious is the. 548 00:27:43,640 --> 00:27:45,519 Speaker 1: Size ten times volume. 549 00:27:46,319 --> 00:27:47,920 Speaker 4: Yeah, that that's big. 550 00:27:48,279 --> 00:27:52,759 Speaker 3: Now what may there may be the timing of that 551 00:27:52,839 --> 00:27:55,720 reeks Okay, so that that that that reeks. 552 00:27:56,519 --> 00:27:59,279 Speaker 4: It could have been somebody hedging along position. 553 00:28:00,319 --> 00:28:03,119 Speaker 1: So they have a position to your healthcare where they're long, 554 00:28:03,880 --> 00:28:06,359 so they take a portion of time and they're short. 555 00:28:07,400 --> 00:28:10,839 Speaker 3: Well they'll hedge it, okay, right, So like we'll do that, 556 00:28:10,920 --> 00:28:13,960 so we'll have I'll give you a practical example. 557 00:28:14,200 --> 00:28:14,480 Speaker 2: Okay. 558 00:28:14,640 --> 00:28:16,640 Speaker 3: Up here in Washington, we've got a lot of clients 559 00:28:16,640 --> 00:28:18,920 that we've worked for tech companies and they've acquired big 560 00:28:19,079 --> 00:28:22,839 chunks of stock. Right, well, when they retire, that stock 561 00:28:23,000 --> 00:28:24,799 is awesome, and there are a lot of great companies, 562 00:28:25,039 --> 00:28:27,319 but that stock might make up you know, thirty forty 563 00:28:27,400 --> 00:28:30,559 fifty percent of their total retirement package. Right, So what 564 00:28:30,599 --> 00:28:33,599 we need to do is we need to diversify that, 565 00:28:33,680 --> 00:28:35,279 but we need to do it over time because they're 566 00:28:35,279 --> 00:28:37,160 sitting on big cap gains and things like that. 567 00:28:37,240 --> 00:28:37,440 Speaker 4: Right. 568 00:28:37,880 --> 00:28:41,200 Speaker 3: Well, what we'll do typically and not all the time, 569 00:28:41,240 --> 00:28:45,200 it depends client to client, is we'll purchase put options 570 00:28:45,279 --> 00:28:48,880 on that underlying stock. And we can do it usually 571 00:28:48,960 --> 00:28:51,720 for about free without any money out of the client's 572 00:28:51,720 --> 00:28:56,039 pocket because we'll sell call options against the position, take 573 00:28:56,119 --> 00:28:59,599 that premium and buy put options. And now if that 574 00:28:59,759 --> 00:29:03,680 into visual stock is to get hit, the put options 575 00:29:03,720 --> 00:29:05,759 are going up almost the same amount. 576 00:29:06,079 --> 00:29:08,440 Speaker 4: So it's like it's like free insurance. 577 00:29:08,839 --> 00:29:13,680 Speaker 3: Okay, So guys will do that to hedge a long 578 00:29:13,759 --> 00:29:14,920 position on their books. 579 00:29:15,279 --> 00:29:17,480 Speaker 4: But like I said, the timing of that reeks. 580 00:29:17,960 --> 00:29:20,599 Speaker 3: The other thing to consider, the one other way it 581 00:29:20,640 --> 00:29:25,240 could be a legitimate trade is sometimes these things leak 582 00:29:26,279 --> 00:29:29,279 and it's not like a purpose, you know, like stuff 583 00:29:29,559 --> 00:29:31,400 like everybody at all these banks and everything, they all 584 00:29:31,480 --> 00:29:31,920 know each other. 585 00:29:31,960 --> 00:29:34,559 Speaker 4: We've trade together, you know, you all know each other. 586 00:29:34,799 --> 00:29:37,440 Speaker 3: And so somebody could have had a long position on 587 00:29:37,559 --> 00:29:39,559 and a rumor was going around that there could be 588 00:29:39,599 --> 00:29:42,559 bad news on United Health and they could do it, 589 00:29:42,880 --> 00:29:47,640 or considering the timing and the size in terms of 590 00:29:47,680 --> 00:29:52,240 the volume, I would bet that it was somebody that 591 00:29:52,440 --> 00:29:56,480 was either connected, had knowledge, was acting with insider trading information, 592 00:29:57,119 --> 00:30:01,200 and bought dated them out to September to make them 593 00:30:01,240 --> 00:30:01,920 look less on. 594 00:30:02,039 --> 00:30:05,240 Speaker 1: That's what I was going to say. I guess I 595 00:30:05,279 --> 00:30:07,480 could actually see it being someone in the United Healthcare 596 00:30:07,920 --> 00:30:10,759 and having the buy done by someone else where they're 597 00:30:10,799 --> 00:30:11,839 masks totally right. 598 00:30:12,039 --> 00:30:14,079 Speaker 4: Could could absolutely be the case. 599 00:30:14,240 --> 00:30:17,079 Speaker 3: And like I said, it's the timing of it and 600 00:30:17,119 --> 00:30:20,759 then also the size. Okay, right, because you got to remember, 601 00:30:21,440 --> 00:30:24,920 options aren't like stocks. Right, If I go buy twenty 602 00:30:24,920 --> 00:30:28,079 five million worth of stock, regardless of what happens to 603 00:30:28,119 --> 00:30:32,039 that company, the vast majority of that value is probably 604 00:30:32,079 --> 00:30:33,680 still going to be there six months later. 605 00:30:33,960 --> 00:30:36,559 Speaker 4: Okay. With options, it's not right. 606 00:30:36,599 --> 00:30:39,799 Speaker 3: So if that doesn't happen, if that option doesn't go good, 607 00:30:40,079 --> 00:30:41,519 that twenty five million is gone. 608 00:30:42,839 --> 00:30:44,519 Speaker 4: That's what he paid. He put in twenty five million, 609 00:30:44,759 --> 00:30:45,559 got it? Okay? 610 00:30:45,640 --> 00:30:47,200 Speaker 1: So I want to get to one of the things. 611 00:30:47,240 --> 00:30:51,839 It's about housing, and it's something I think that that 612 00:30:52,160 --> 00:30:54,599 affects a lot of people because to me, again it's 613 00:30:54,640 --> 00:30:58,319 a comparison this. This investor makes eighty million bucks on 614 00:30:58,400 --> 00:31:00,160 this trade, and I want to compare this to where 615 00:31:00,200 --> 00:31:03,039 Americans are out in terms of housing. I will say 616 00:31:03,039 --> 00:31:05,160 this real quick about Zach. He is a man of 617 00:31:05,200 --> 00:31:08,000 his word. He said he's going to come to renew 618 00:31:08,000 --> 00:31:10,119 with me in Mexico. Boom, He's coming to renew. He 619 00:31:10,200 --> 00:31:11,799 learned about bone frog. He's like, you know what, that's 620 00:31:11,799 --> 00:31:14,400 gonna be our coffee. Boom, it's his coffee in his office. 621 00:31:15,119 --> 00:31:16,960 He heard me describe mass simons are going to take 622 00:31:16,960 --> 00:31:19,480 mass times. He did years and years and years ago 623 00:31:20,039 --> 00:31:22,559 when he first learned about the mission of Alan Soaps. Zach, 624 00:31:22,720 --> 00:31:25,240 I remember we were talking. He wrote it down and 625 00:31:25,319 --> 00:31:28,799 I even remember you handed it to someone. And now 626 00:31:28,960 --> 00:31:31,920 Alan Soaps is the soap throughout the Bower Capital Management's 627 00:31:31,960 --> 00:31:34,680 offices all around the country. And you've got that statue 628 00:31:34,680 --> 00:31:36,839 of Allen in Dubai. I think that's so good. It's 629 00:31:36,839 --> 00:31:41,599 made out of soap. Yeah, sorry, I'm sorry, Rihod I apologize, 630 00:31:42,440 --> 00:31:44,640 and so Zach made that decision. So let me talk 631 00:31:44,640 --> 00:31:47,839 to business owners. You're probably not gonna be, you know, 632 00:31:47,880 --> 00:31:50,480 putting hand soap in your business, but let me just 633 00:31:50,519 --> 00:31:53,240 say this, you can put the liquid soap. It's Ian's blend. 634 00:31:54,079 --> 00:31:56,079 It's it's still made by the same family. If there's 635 00:31:56,079 --> 00:31:59,319 three generations soap biking expertise, it's still all natural, it's 636 00:31:59,319 --> 00:32:02,920 still gentle. It still supports the mission of hiring and 637 00:32:02,960 --> 00:32:06,920 retaining people like Alan, who's effectively nonverbal through because of 638 00:32:06,960 --> 00:32:10,880 autism and as these structural health challenges. His brother Ian, 639 00:32:11,000 --> 00:32:15,119 named after this soap, is also challenged by autism. Amy 640 00:32:15,119 --> 00:32:17,759 got autism late in life. That's a great soap to 641 00:32:17,799 --> 00:32:20,799 have in your business because it's a conversation starter. What 642 00:32:20,960 --> 00:32:22,920 is this Allen's artesian soap? Why do you have this? 643 00:32:23,000 --> 00:32:25,720 And one another thing. If you're in a hospitality business 644 00:32:25,759 --> 00:32:28,720 or customer service business, like being a realator, you have 645 00:32:28,759 --> 00:32:31,799 people who buy a house get some of these gift 646 00:32:31,880 --> 00:32:36,200 baskets because they're beautiful, they're well done. And someone purchases 647 00:32:36,279 --> 00:32:38,480 a house, now you're giving them some soap that values 648 00:32:38,519 --> 00:32:40,880 life that they're going to use, maybe something they can 649 00:32:40,920 --> 00:32:43,240 put out. All that's available Alan soaps. It's not just 650 00:32:43,319 --> 00:32:46,160 bars of soap, it's not just subscription soap. And in fact, 651 00:32:46,200 --> 00:32:48,839 there are DIY gift kits you could put together on 652 00:32:48,880 --> 00:32:51,880 your own and source for things like that. So it's 653 00:32:51,880 --> 00:32:54,920 alansaps dot com, slash todd and use promo code Todd 654 00:32:54,960 --> 00:32:57,759 for a ten percent off. So from an eighty million 655 00:32:57,799 --> 00:33:03,200 dollar nice day, someone day again from unusual Wales, US 656 00:33:03,279 --> 00:33:06,039 household now needs one hundred and fourteen thousand annually to 657 00:33:06,079 --> 00:33:09,839 afford a median price home. That's up seventy point one 658 00:33:09,960 --> 00:33:14,720 percent from sixty seven thousand just six years ago, per 659 00:33:14,759 --> 00:33:17,000 re liture dot com. And here's what Rob McNeely wrote 660 00:33:17,000 --> 00:33:23,519 on Twitter. Politicians devalued through devalued, this through printing money, 661 00:33:23,519 --> 00:33:27,000 housing a perfect storm of supplying demand driven by demographic changes. 662 00:33:28,400 --> 00:33:31,039 Do respond to that at all? And because that seems 663 00:33:31,079 --> 00:33:34,079 like a huge, huge jump to me? And I know this. 664 00:33:34,160 --> 00:33:36,720 I've got I've got a daughter in her early twenties 665 00:33:36,759 --> 00:33:39,519 and she's looking at things going, look, I don't know 666 00:33:39,519 --> 00:33:43,759 that I'll ever own a house. I mean, is that 667 00:33:43,839 --> 00:33:44,279 the routy? 668 00:33:46,039 --> 00:33:46,279 Speaker 2: No? 669 00:33:46,519 --> 00:33:46,960 Speaker 4: I mean what. 670 00:33:48,519 --> 00:33:48,599 Speaker 2: No? 671 00:33:48,839 --> 00:33:52,000 Speaker 3: I Eventually the right things will get done and the 672 00:33:52,039 --> 00:33:54,799 right decisions will get made, and well we'll get we'll get. 673 00:33:54,680 --> 00:33:55,440 Speaker 4: It under control. 674 00:33:55,720 --> 00:33:59,720 Speaker 3: But but look, you know, for years and years and years, 675 00:33:59,720 --> 00:34:01,279 and I'm remember you know, you and I have had 676 00:34:01,279 --> 00:34:04,359 these conversations dating wayback, but felt like kind of like 677 00:34:04,640 --> 00:34:07,119 a crazy man on the edge of the cliffs, screaming 678 00:34:07,119 --> 00:34:09,719 into the abyss, you know what I mean. But when 679 00:34:09,719 --> 00:34:12,400 we were watching the Federal Reserve balance sheet climb by 680 00:34:12,400 --> 00:34:15,280 trillions of dollars over the years with quantitative easying and 681 00:34:15,360 --> 00:34:17,400 zero interest rate policy and all that kind of stuff, 682 00:34:17,800 --> 00:34:19,840 you know, And it's not just me at all, but 683 00:34:19,960 --> 00:34:22,039 a lot of people in the financial industry were sitting 684 00:34:22,039 --> 00:34:25,840 there going, hey, guys, fun for now, but the bill's 685 00:34:25,880 --> 00:34:26,480 gonna come do. 686 00:34:27,119 --> 00:34:27,960 Speaker 4: Oh, what are you talking about. 687 00:34:28,000 --> 00:34:30,440 Speaker 3: There's no inflation. I'm like, yeah, keep printing money, right, 688 00:34:30,559 --> 00:34:32,000 keep juicing things. 689 00:34:32,079 --> 00:34:34,079 Speaker 4: Keep loading. Everybody think about this. 690 00:34:34,599 --> 00:34:38,119 Speaker 3: There's another reason that nobody really thought about. One of 691 00:34:38,159 --> 00:34:43,599 the biggest levers that usually gets us out of recession 692 00:34:44,599 --> 00:34:47,079 is a refinance boom. Right when you look at the 693 00:34:47,159 --> 00:34:49,480 last forty years, what happened every time we go to recess. 694 00:34:49,599 --> 00:34:54,280 Interest rates would drop yep, right, Unemployment will go up, right, 695 00:34:54,559 --> 00:34:57,480 and people had less money to spend, so then they'd 696 00:34:57,480 --> 00:34:59,800 refinance their house at a lower rate, their payment would 697 00:34:59,840 --> 00:35:01,679 go down, They pull out some cap, pay off some 698 00:35:01,719 --> 00:35:03,559 credit cards, and they made it through. 699 00:35:04,039 --> 00:35:04,280 Speaker 4: Right. 700 00:35:04,679 --> 00:35:08,079 Speaker 3: Well, when you go do the numbers, and you look 701 00:35:08,119 --> 00:35:10,119 at the average mortgage rate in. 702 00:35:10,079 --> 00:35:14,239 Speaker 4: The US, it's like three to five. Okay, today there 703 00:35:14,400 --> 00:35:14,920 is seven. 704 00:35:16,079 --> 00:35:20,519 Speaker 3: So if you have a nasty recession and interest rates 705 00:35:20,519 --> 00:35:24,360 on mortgages fall the four five, eighty five percent of 706 00:35:24,360 --> 00:35:26,039 the people in the country aren't going to rEFInd. 707 00:35:26,360 --> 00:35:29,119 Speaker 4: There's no relief. Right. 708 00:35:29,440 --> 00:35:32,639 Speaker 3: So what we were saying is, hey, this is the 709 00:35:32,719 --> 00:35:36,239 classic this is the classic example. Everything the FED did 710 00:35:36,519 --> 00:35:39,039 since eight o nine, it was the classics example of 711 00:35:39,079 --> 00:35:39,840 eating the seed corn. 712 00:35:40,480 --> 00:35:40,679 Speaker 4: Right. 713 00:35:41,039 --> 00:35:43,960 Speaker 3: We were eating what we were going to need in 714 00:35:44,000 --> 00:35:47,599 the future. And now when you look at the rate situation, 715 00:35:47,719 --> 00:35:49,880 and we knew eventually you'd get here too, didn't know 716 00:35:49,920 --> 00:35:51,519 what the levers would be, but it was only a 717 00:35:51,519 --> 00:35:54,639 matter of time. And eventually you get to a place 718 00:35:54,639 --> 00:35:56,800 where people do want to quit buying your long dated 719 00:35:56,840 --> 00:35:59,239 bonds and your rates go up and they're not as 720 00:35:59,239 --> 00:36:01,760 easy to pull back. You've got to make some tough decisions. 721 00:36:01,920 --> 00:36:04,280 Do you want to deal with higher than trend inflation 722 00:36:04,480 --> 00:36:08,360 going forward for a substantial amount of time and inflate 723 00:36:08,519 --> 00:36:13,280 the problem away effectively, or do you want to you know, 724 00:36:13,960 --> 00:36:17,119 the quicker but less painful and popular pill, which is 725 00:36:17,199 --> 00:36:21,320 seldom chosen, is make some hard choices and cut spending, right. 726 00:36:21,119 --> 00:36:28,880 Speaker 1: But hard choices. Yeah, that's basically racism. 727 00:36:27,079 --> 00:36:32,320 Speaker 3: I'm sure, yeah, by yeah, just nowadays it's sure right, yeah, yeah. 728 00:36:32,239 --> 00:36:35,039 Speaker 1: Yeah, what isn't President Trump was speaking about something that's 729 00:36:35,039 --> 00:36:39,880 going to affect everybody who lives to see retirement, and 730 00:36:40,159 --> 00:36:44,159 it's this, this tax and social Security. And there are 731 00:36:44,199 --> 00:36:48,440 Republicans who want to continue to tax social Security. This 732 00:36:48,480 --> 00:36:50,719 is President Trump talking about what he likes to call 733 00:36:50,760 --> 00:36:51,760 his big, beautiful bill. 734 00:36:52,119 --> 00:36:54,960 Speaker 5: These will be the biggest tax cuts in American history. 735 00:36:55,000 --> 00:36:59,840 With one expensing, which is something that people cannot believe 736 00:36:59,840 --> 00:37:01,760 they getting. We did it, and the last one, and 737 00:37:01,840 --> 00:37:04,599 we had the most successful economy in my first four 738 00:37:04,679 --> 00:37:07,360 years that we've ever had the history of our country, 739 00:37:07,920 --> 00:37:10,880 and expensing was one of the things that led to that. 740 00:37:12,199 --> 00:37:15,199 But it's one hundred percent expensing for companies investing in 741 00:37:15,239 --> 00:37:19,239 America and increasing take home pay for the typical family 742 00:37:19,280 --> 00:37:24,480 by thousands of dollars a year. And to show you 743 00:37:24,519 --> 00:37:28,880 how middle income this is, there'll be no tax on tips, 744 00:37:29,360 --> 00:37:34,880 no tax on overtime, no tax for the great seniors. 745 00:37:34,920 --> 00:37:38,000 In social securities. You have no tax on Social Security 746 00:37:38,039 --> 00:37:42,719 for our great seniors. And we have full deduction for interest. 747 00:37:42,760 --> 00:37:44,599 If you buy a car that's made in America, you 748 00:37:44,639 --> 00:37:47,360 get an interest rate deduction. That's going to be a 749 00:37:47,360 --> 00:37:50,239 big got to be made in America. If it's not 750 00:37:50,440 --> 00:37:52,320 made in America, we really don't care if you buy 751 00:37:52,360 --> 00:37:53,960 it or not. But if it's made in America, we 752 00:37:54,000 --> 00:37:56,400 want you to buy it. We make the best cars anyway. 753 00:37:56,800 --> 00:37:58,800 Speaker 1: Now, I do say this to the President that he 754 00:37:58,880 --> 00:38:00,719 made clear that this is a tax trip for the 755 00:38:00,719 --> 00:38:03,599 great seniors, and they had the scumbag seniors. I liked it. 756 00:38:03,599 --> 00:38:06,000 He's made the delineation. So the scumbag seniors are the 757 00:38:06,039 --> 00:38:08,719 neutral seniors. They don't get that, but the great seniors do. 758 00:38:09,280 --> 00:38:12,119 Just going through that package, I mean, I think you 759 00:38:12,159 --> 00:38:15,039 and I can both agree the tax on Social Security 760 00:38:15,360 --> 00:38:18,679 is obscene in a crime because it was money taken 761 00:38:18,679 --> 00:38:21,320 by force. How do you see the rest of that package. 762 00:38:21,400 --> 00:38:23,599 I mean the no tax on tips. That thing passed. 763 00:38:23,679 --> 00:38:25,800 It's bipartisan out of the Senate. It's like one hundred 764 00:38:25,800 --> 00:38:28,920 percent of senator's vote for that. So the respecting populism, 765 00:38:29,639 --> 00:38:31,599 the tax write off, and then the thing that I 766 00:38:31,599 --> 00:38:33,800 think people will need unpacked is what's this one hundred 767 00:38:33,800 --> 00:38:36,599 percent right off thing? That prison talked about. 768 00:38:36,639 --> 00:38:42,039 Speaker 3: What he said expensing one hundred percent. What I'm assuming 769 00:38:42,159 --> 00:38:47,800 he's talking about is I believe I saw a line 770 00:38:47,840 --> 00:38:51,679 item in the in the bill that said new manufacturing here, 771 00:38:51,760 --> 00:38:54,119 they don't pay taxes, so basically they'll be able to 772 00:38:54,199 --> 00:38:54,679 expense it. 773 00:38:54,920 --> 00:38:57,960 Speaker 4: Okay, Yeah, so the way I read it now, I 774 00:38:57,960 --> 00:38:59,679 have not dug through it. I just saw a bullet 775 00:38:59,880 --> 00:39:00,360 right right right. 776 00:39:00,440 --> 00:39:02,960 Speaker 3: Person that put the bullet point could be off, but yeah, 777 00:39:03,119 --> 00:39:05,519 just expensing one hundred percent of their costs, and I 778 00:39:05,559 --> 00:39:08,719 believe not paying income taxes for a certain amount of years. 779 00:39:10,159 --> 00:39:14,239 Speaker 1: I'm in the building that factory. Well, I'm gonna make podcasts. 780 00:39:14,679 --> 00:39:15,880 Speaker 4: Again, I don't know that. 781 00:39:16,039 --> 00:39:18,239 Speaker 3: I don't know that that's the case, but I'm assuming 782 00:39:18,280 --> 00:39:21,159 that's what he's talking about, because everybody gets one hundred 783 00:39:21,199 --> 00:39:24,440 percent deduction on expenses anyway, So I don't, I don't. 784 00:39:24,559 --> 00:39:25,960 Speaker 4: I don't know what else he would mean by that. 785 00:39:26,480 --> 00:39:29,519 Speaker 1: And then the taking the interest rates of or the 786 00:39:29,559 --> 00:39:31,519 writing off the interest in a car's personal scenario, that's 787 00:39:31,559 --> 00:39:34,400 a smart move. That's the incentive. 788 00:39:35,159 --> 00:39:35,400 Speaker 4: Yeah. 789 00:39:35,480 --> 00:39:39,079 Speaker 3: The other thing I like about those things, what I 790 00:39:39,079 --> 00:39:41,280 would like to see them is have spending cuts that 791 00:39:41,400 --> 00:39:44,760 go along with them and make those things revenue neutral spending. 792 00:39:44,840 --> 00:39:48,800 Speaker 4: But I think, yeah, right right, yeah, it's I'm one 793 00:39:48,840 --> 00:39:50,480 of those Yeah, I'm one of those guys, one of 794 00:39:50,480 --> 00:39:51,440 those crazy guys. 795 00:39:52,360 --> 00:39:53,760 Speaker 3: But you know, I y, I would like to see 796 00:39:53,760 --> 00:39:55,880 a revenue neutral when you're running a deficit of seven 797 00:39:55,880 --> 00:39:59,719 percent of GDP. Now, I think that those I think 798 00:39:59,760 --> 00:40:02,280 that the tax cuts that he's talking about there, I 799 00:40:02,320 --> 00:40:04,920 think that those almost. I think those the kind of 800 00:40:05,000 --> 00:40:07,400 tax cuts that should be done regardless of where you're at, 801 00:40:07,480 --> 00:40:11,880 because there's a fairness issue, right, yeah, you know, I 802 00:40:11,920 --> 00:40:12,519 think that's. 803 00:40:13,360 --> 00:40:15,519 Speaker 4: Yeah. The idea that we tax those security to me 804 00:40:15,679 --> 00:40:16,719 is just crazy. 805 00:40:16,800 --> 00:40:18,719 Speaker 1: Right, we sold the money from you, we put it 806 00:40:18,719 --> 00:40:20,400 in something that gets you a one percent return. You 807 00:40:20,400 --> 00:40:22,679 could have gotten seven and a half over But anyway, 808 00:40:22,719 --> 00:40:25,679 we're going to tax you on this last thing. This 809 00:40:25,760 --> 00:40:29,480 comes from First Squawk on Twitter. Trump considers opening retirement 810 00:40:29,480 --> 00:40:33,119 plans to private equity. Q E Infinity replies bad idea. 811 00:40:33,400 --> 00:40:36,840 Private equity needs liquid and needs exit liquidity. Looks like 812 00:40:36,880 --> 00:40:40,400 the fur one k users will be the sheep. I mean, okay, 813 00:40:40,400 --> 00:40:44,119 so you're nodding. Absolutely stupid idea. 814 00:40:43,239 --> 00:40:44,239 Speaker 4: A horrible idea. 815 00:40:44,519 --> 00:40:47,280 Speaker 3: These private equity firms have not been adjusting their marks 816 00:40:47,280 --> 00:40:47,880 on their books. 817 00:40:48,039 --> 00:40:49,039 Speaker 4: Remember they're not like. 818 00:40:49,119 --> 00:40:52,880 Speaker 3: This stuff isn't free trading on a market somewhere, so effectively, 819 00:40:52,920 --> 00:40:56,239 now there are some guidelines, but effectively, you could be 820 00:40:56,280 --> 00:40:58,679 looking at a company that you own on a private 821 00:40:58,679 --> 00:41:03,039 equity basis that's down sixty percent and you don't you 822 00:41:03,079 --> 00:41:05,400 don't have to mark it down, right because there's not 823 00:41:05,440 --> 00:41:09,079 a transaction, so you can hold it at that last 824 00:41:09,079 --> 00:41:10,199 transactional price. 825 00:41:10,960 --> 00:41:15,000 Speaker 4: So and and there is never I mean, private equity 826 00:41:15,039 --> 00:41:20,599 got flooded, flooded, And I know guys in the space. 827 00:41:20,760 --> 00:41:23,280 Speaker 3: I know managers that run funds, and I will tell 828 00:41:23,320 --> 00:41:27,440 you there are zombies on these guys's books. 829 00:41:27,920 --> 00:41:28,960 Speaker 4: They desperately. 830 00:41:29,239 --> 00:41:33,760 Speaker 3: Why do you think blackrocks spun out private equity etf right, 831 00:41:33,800 --> 00:41:36,559 it's exit liquidity. Those guys are one hundred percent right 832 00:41:36,599 --> 00:41:39,239 that wrote that tweet. The last thing on earth you 833 00:41:39,280 --> 00:41:42,800 want to do is give people access to that toxic 834 00:41:43,000 --> 00:41:46,320 sludge in their four oh one case. I understand why 835 00:41:46,360 --> 00:41:50,039 he's saying that, and generally speaking, I would be for 836 00:41:50,280 --> 00:41:52,360 that because I think the choices inside of four to 837 00:41:52,400 --> 00:41:54,920 one k's are far too restrictive. But I would be 838 00:41:54,920 --> 00:41:57,480 pulling him aside and go Donald, I understand why you 839 00:41:57,480 --> 00:42:00,960 support that. Don't do it bad idea? Not now wait 840 00:42:01,000 --> 00:42:02,320 till private equity blows up. 841 00:42:02,599 --> 00:42:04,719 Speaker 1: Well, it's always good de. Why's council day with you? 842 00:42:05,000 --> 00:42:09,360 A couple of weeks until we're in Mexico together. I'm hey, 843 00:42:09,400 --> 00:42:11,360 I figured out I do want to hit the golf 844 00:42:11,360 --> 00:42:13,199 course with you and some of the guys down there. 845 00:42:13,960 --> 00:42:15,719 So I want you to know I'm putting some effort 846 00:42:15,719 --> 00:42:18,360 into this and I'm playing some what's. 847 00:42:18,159 --> 00:42:18,719 Speaker 4: It called. 848 00:42:20,239 --> 00:42:23,480 Speaker 1: It's the name of the course is Oh, it's Captain 849 00:42:23,559 --> 00:42:24,800 Kidd's Pirate Course. 850 00:42:25,639 --> 00:42:27,199 Speaker 4: Fam. Yeah, you're gonna be dialed. 851 00:42:27,800 --> 00:42:29,280 Speaker 1: Okay, good, good. 852 00:42:29,519 --> 00:42:31,480 Speaker 3: You're gonna have a sharp score, my friend, when you're 853 00:42:31,519 --> 00:42:33,760 down there, I expect to see some good scores at me. 854 00:42:33,880 --> 00:42:35,880 Speaker 1: I love it. I'm going to be across that waterfall too, 855 00:42:36,119 --> 00:42:39,679 watch it right through that mouse's hold a mouth. This 856 00:42:39,800 --> 00:42:43,159 is Todd Herman Show. Please go be well, be strong, 857 00:42:43,280 --> 00:42:45,239 be kind, Please make every effort to walk in the 858 00:42:45,320 --> 00:42:46,000 light of Christ.