Speaker 1: Oh, the voices of reason, a voice in the dark, heard.
Speaker 2: Daily exactly the things that need to be said.
Speaker 3: Fifty five KRC the Talk Station.
Speaker 1: It's eight oh six here at fifty five kr C
Speaker 1: the Talk Station. Very happy Monday to you. Always money
Speaker 1: Monday with Brian James, all the financials uh, Brian James
Speaker 1: during the program every Monday to talk markets and talk
Speaker 1: volatility and talk about four oh one k is. Welcome back,
Speaker 1: Brian James. It's always a pleasure to having you on
Speaker 1: the program. His microphones off, see if yes it is there?
Speaker 1: Yes it was off. There you go.
Speaker 3: I sure, yeah, and I was.
Speaker 4: I was ready to roll, all ready to get our
Speaker 4: Monday kicked off and I'm talking to myself. Apologies for
Speaker 4: us some technical inaptitude here. Yes, another Monday, another discussion
Speaker 4: of volatility and craziness and audio problems.
Speaker 1: Coming off a week of vacation, I feel as though
Speaker 1: I'm not firing on all cylinders. I like vacation. It's
Speaker 1: like you need a vacation at your vacation, so you know. Anyway,
Speaker 1: struggling to scoch myself this morning, but Mike's are on.
Speaker 1: It's time to talk money matters. Let's talk about stock
Speaker 1: market volatility. I no market genius, am I, Brian. That's
Speaker 1: why I have someone managing my you know, my certified
Speaker 1: financial planner managing my affairs. I don't want to have
Speaker 1: to pay attention to it, but I have some general
Speaker 1: understandings and things like that. But I get the impression
Speaker 1: that the volatility in the market, and it has been
Speaker 1: kind of up and down with all these talks about tariffs.
Speaker 1: I just I just get the impression no one really
Speaker 1: knows what they're gonna do these tariffs and how we're
Speaker 1: gonna be dealing with it, or what is going to
Speaker 1: emerge as a consequence of them. Will they stay around?
Speaker 1: Will Donald Trump pull the plug on them? Is he
Speaker 1: going to negotiate better deals with different countries? Is China
Speaker 1: going to hold out? I mean, it's just seems to
Speaker 1: me a whole lot of question mark swirling around it,
Speaker 1: and that uncertainty of its in and of itself brings
Speaker 1: around volatility. I suppose, doesn't it?
Speaker 3: Yeah, it does.
Speaker 4: And I'm looking at what happened last week. My first
Speaker 4: comment was going to be it was relatively quiet week,
Speaker 4: but then I realized, no, it wasn't.
Speaker 3: Hasn't been quiet week.
Speaker 4: All year long, it's been nothing but chaos because we're
Speaker 4: simply finding our way. You know, a quiet week simply
Speaker 4: means the market bounced up and down violently, but then
Speaker 4: kind of ended where it started, so there was no
Speaker 4: you know, kind of week over week impacts. But yeah,
Speaker 4: we have reached the stage. We know we're in chaos
Speaker 4: right now. We know there's a there's change coming, and
Speaker 4: we're we're under We're under a lot of it right now.
Speaker 3: The market absolutely hates that.
Speaker 4: It's not that, you know, we're gonna go over the
Speaker 4: cliff and hit the bottom and it's going to be
Speaker 4: the end and we're all gonna, you know, live in
Speaker 4: caves and buy ammunition and grow corn for the rest
Speaker 4: of our lives. It's that's not that's not where we are.
Speaker 4: But the market is behaving the way it is because
Speaker 4: it simply can't see. We're flailing around in the fog.
Speaker 4: The market absolutely hates when it can't predict what's coming.
Speaker 4: So therefore, what the market always wants to know. You know,
Speaker 4: there are a number of earnings reports, for example, coming
Speaker 4: this week from big companies like Verizon, AT and T,
Speaker 4: P and G and some of the big names we
Speaker 4: are going to be listening. What we're gonna focus on
Speaker 4: this week is what are those companies saying in terms
Speaker 4: of visibility. Doesn't really matter what they did in the
Speaker 4: last quarter. We't care about that anymore. That's that's that's
Speaker 4: over and done with. What are they What position are
Speaker 4: they going to take over the next several months with
Speaker 4: regards to tariffs? So, for example, if Procter and Gamble
Speaker 4: manufacture stuff overseas and wants to move it from country
Speaker 4: to country, what's the tariff going to be on the
Speaker 4: day that that package of stuff arrives in whatever country
Speaker 4: it's it's destined for. And we don't know that right
Speaker 4: now because that literally changes that you as you just said,
Speaker 4: that changes almost day to day anymore. The market absolutely
Speaker 4: hates that because it cannot calculate what a successful transaction
Speaker 4: should result in terms of profit. Therefore, we have these
Speaker 4: violence wings back and forth for this wort.
Speaker 1: The planning is, I mean, the markets, if there's if
Speaker 1: you can count on something happening, even if like taxes
Speaker 1: are going to increase, you know it's going to happen,
Speaker 1: it's gonna be x. They can factor that in and
Speaker 1: deal with it because there's some certainty into what's coming
Speaker 1: in the future. It may not be as good. Financial
Speaker 1: projections may not be as good, but at least they
Speaker 1: can have some you know, sound ground upon which to
Speaker 1: make these predictions and sort of plan their future. And
Speaker 1: right now we're kind of like a ship without a rudder,
Speaker 1: it seems.
Speaker 3: Yeah, pretty much.
Speaker 4: And that is there's so much history between when we
Speaker 4: can say, okay, we know that P ANDNG, Google, Apple, whatever,
Speaker 4: sold x number of units, and they normally have this
Speaker 4: kind of a profit profit margin when they do those
Speaker 4: kinds of things, So therefore the stocks should move like
Speaker 4: this and we can kind of anticipate and that's what
Speaker 4: analysts basically get paid to do. But right now that
Speaker 4: profit margin is in question because because of all the
Speaker 4: tariffs and all those kinds of things, what is the
Speaker 4: dream going to be? And so what we're seeing is
Speaker 4: it's an interesting divergence. I'm looking at a chart right
Speaker 4: now just where everything is so prior to this week,
Speaker 4: even the European, Far East and Asian stocks, you know,
Speaker 4: which is basically the S and P five hundred of
Speaker 4: the rest of the world. Last week they were down
Speaker 4: about three four percent for the year, as we're sitting
Speaker 4: here right now, Brian Thomas.
Speaker 3: They're up about seven percent for the year.
Speaker 4: Now, compare that with the Nasdaq, which still sits down
Speaker 4: about sixteen percent, the S and P five hundreds down
Speaker 4: ten and even the DALLA is down eight percent. So
Speaker 4: the point of all that is there is volatility, but
Speaker 4: that also means there's upside to it. The companies that
Speaker 4: are doing the best are the ones that potentially have
Speaker 4: an opportunity here. And we've talked about this before, but
Speaker 4: there are probably some funds, hopefully some funds in your
Speaker 4: portfolio that you haven't been paying attention to in years.
Speaker 4: I'm speaking of the international stocks in the emerging markets,
Speaker 4: which is which are more like the Brazil, India, China,
Speaker 4: those kinds of things. We haven't talked about those countries
Speaker 4: in a long long time, but they're all lining up
Speaker 4: looking at this opportunity, watching the United States choose to
Speaker 4: fight with its customers, and they're looking for opportunities to
Speaker 4: create new markets where for those countries there wasn't one before.
Speaker 4: And so that's why the market is sensing that, hey,
Speaker 4: these companies that maybe weren't as big as players as
Speaker 4: they were in the past may now have a great opportunity.
Speaker 4: That's why they're up seven percent. So if you have
Speaker 4: a properly diversified portfolio, you really shouldn't be getting killed.
Speaker 4: If you're down fifteen to twenty percent, then my guess
Speaker 4: has been you've been chasing technology for the last fifteen
Speaker 4: years and it's coming around to bite you in the
Speaker 4: rear end.
Speaker 1: Well, there's I mean, there's opportunity built in a lot
Speaker 1: of this, and I mean, depending on where you look.
Speaker 1: If you read the Wall Street Journal, we're all going
Speaker 1: to die because tariff suck. And that's just the general
Speaker 1: impression that they have. But there's been a lot of
Speaker 1: sort of bright spots in this that major companies, multi
Speaker 1: billion dollar companies are planning on building here and moving
Speaker 1: production here. Like for example, there's a terrible situation going
Speaker 1: if you haven't read about it, between China and Taiwan,
Speaker 1: and it looks like, you know, China's going to invade
Speaker 1: any moment, at least it's always seen that way for
Speaker 1: the past couple of years. But all the major ship
Speaker 1: production is being done in Taiwan. Sounds to me like
Speaker 1: going to start bringing chip production here to the United States.
Speaker 1: So ultimately we can benefit by this. It's not going
Speaker 1: to be immediate. We're gonna have to wait for it
Speaker 1: because you just don't create a chip factory overnight. But
Speaker 1: if we ultimately, you know, have some domestics apply for
Speaker 1: some things that we haven't had for a long time,
Speaker 1: isn't that ultimately good for us over the long term.
Speaker 3: Yeah, And that is the hope. And some of that
Speaker 3: was rolling forward.
Speaker 4: There are two chip factories southeast of Columbus that are
Speaker 4: that are under construction. Unfortunately that hit there recently, that
Speaker 4: hit the news hit not too long ago. That Intel,
Speaker 4: who was behind that, is coming on some hard times,
Speaker 4: partially because of the technology that they provide. Uh that
Speaker 4: another chip company a m D has maybe has some
Speaker 4: better ideas in that space. And that news hit at
Speaker 4: an unfortunate time a couple of maybe a year year
Speaker 4: and a half ago where that started to come to light.
Speaker 4: And so those two plants are sometimes in question. I
Speaker 4: cannot imagine they're going to walk away from them in mothballum,
Speaker 4: but they're not as moving forward with as much gusto
Speaker 4: as they originally were. But that all came from the
Speaker 4: original idea. It originally started with national security. We can't
Speaker 4: keep buying chips from overseas, uh, not knowing exactly what
Speaker 4: our what our enemies speaking specifically of China are putting
Speaker 4: into those chips fluids that they have, and if they
Speaker 4: managed to take over Taiwan, like you were just hinting, well,
Speaker 4: that's where most of the chips come from anyway, from
Speaker 4: Taiwan's semiconductor although some of the plants are here in
Speaker 4: the United States as well. But yes, that is definitely
Speaker 4: one of the goals. It's not going to happen overnight.
Speaker 4: And when we've got interest rates bouncing around, inflation and
Speaker 4: tariffs and all that kind of stuff, companies are going
Speaker 4: to be hesitant to make such a massive, massive investment
Speaker 4: to bring one of these huge plants online in the
Speaker 4: United States. If they were turned the first shovel full
Speaker 4: of dirt over today, it would probably be three years
Speaker 4: before they could start producing something with any kind of regularity.
Speaker 4: So we need some clarity here.
Speaker 1: Well, definitely need some clarity, and it doesn't look like
Speaker 1: it's going to be coming any times. H We demand
Speaker 1: instant answers and instant gratification even in the markets, and
Speaker 1: quite awful, we don't get that. We're going to find
Speaker 1: out if we should be looking at our four oh
Speaker 1: one cas Is this a good buying opportunity notwithstandard of volatility?
Speaker 1: And we'll talk about the FED and which direction the
Speaker 1: rates are going to go more with Brian James after
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Speaker 3: Fifty five KRC four.
Speaker 1: Eight nineteen I fifty about KRC DE Talk Station Money
Speaker 1: Monday with Brian James, Thanks to all with financial loaning
Speaker 1: them out for a few segments here every Monday and
Speaker 1: pivoting over. We talked about market volatility. I understand why
Speaker 1: it's there, but obviously market volatility impacts our four to
Speaker 1: oh one K. And something I never do is check
Speaker 1: where my four oh one K is at least you know,
Speaker 1: with the exception of my twice annual visits with my
Speaker 1: financial planner. I mean, I lived through the COVID nineteen downturn.
Speaker 1: I saw at one point how much I lost and
Speaker 1: lo and behold, if you wait around long enough, it
Speaker 1: all comes back and then you end up having more,
Speaker 1: which is exactly what happened with me. So I like
Speaker 1: to avoid the headache and the heartburn and everything might
Speaker 1: go along with it, because you know, until you sell,
Speaker 1: you haven't really made or lost, right Brian, So should
Speaker 1: we be looking at our four o one k balances?
Speaker 4: Yeah, Well, hopefully you're looking at it and seeing that
Speaker 4: it's not as bad as you thought it was going
Speaker 4: to be. And the reason I say that is because
Speaker 4: hopefully this isn't the first time you've looked at it.
Speaker 3: So if you're doing things the.
Speaker 4: Right way, and you have looked at what your ultimate
Speaker 4: goals are and you understand some market history, then hopefully
Speaker 4: that decision resulted in a diversified portfolio that owns just
Speaker 4: a little bit of everything. Yeah, every four to oh
Speaker 4: and k out there has enough where you can build
Speaker 4: a set it and forget it type of a portfolio
Speaker 4: and do just what Brian Thomas is doing, which is
Speaker 4: look at it a couple times a year. It's not
Speaker 4: money that you're gonna need tomorrow. If that is the case,
Speaker 4: then you already screwed up before four oh one k
Speaker 4: is your only source of wealth.
Speaker 3: That's a problem.
Speaker 4: That means you have no cash, you got no oil
Speaker 4: in the engine, and that kind of thing. This should
Speaker 4: be the money that's out there for at least five, ten,
Speaker 4: even fifteen years to help you fight off inflation. And
Speaker 4: if you look at any chart, any chart of the
Speaker 4: stock market over the last thirty years, then you will
Speaker 4: notice it goes one direction. That direction is up. However,
Speaker 4: we have our little head fakes every now and then.
Speaker 4: I remember when I first started in this industry was
Speaker 4: nineteen ninety seven, and the Russian ruble collapsed in ninety eight,
Speaker 4: and then we had something called long Term Capital's a
Speaker 4: hedge fund that collapsed. I remember thinking, in my youthful stupidity,
Speaker 4: oh my gosh, this time it's different. I'm special, I'm
Speaker 4: scared now, so now this one counts and the end
Speaker 4: it doesn't matter. It's just a reshuffling of the deck
Speaker 4: and different leaders will take the move to the forefront.
Speaker 4: Shortly after that, we had the huge technology boom. All
Speaker 4: of it became a catalyst. Whenever there's some kind of
Speaker 4: panic in the market, somebody takes advantage of the opportunity
Speaker 4: to drive things further. As we hinted out in the
Speaker 4: earlier segment, right now it appears to be the international
Speaker 4: stocks are going to take the lead for a while.
Speaker 4: So far, that's been the case. If you don't own any,
Speaker 4: it's not helping you, and you will feel targeted by
Speaker 4: the market.
Speaker 3: Market doesn't care about you.
Speaker 4: It only cares about what it can see forward, and
Speaker 4: right now that's not very much.
Speaker 3: So make sure that.
Speaker 4: Your portfolio is at least spread out across these different
Speaker 4: things so that as things have been flow, you'll benefit
Speaker 4: from it, but you don't take it on the chin
Speaker 4: if something completely falls apart.
Speaker 1: Well, and there's you know, conservative investing, and then there's
Speaker 1: you know, riskier investing. You know, obviously with risk you're investing.
Speaker 1: The idea of getting a bigger return is always there.
Speaker 1: You know, every time I meet with financial plan, there's
Speaker 1: always that one fund like twenty five percent return. You're like,
Speaker 1: damn it, I wish I had put more in there
Speaker 1: in that one, because look this one over here only
Speaker 1: got me four percent return. How often should we be
Speaker 1: adjusting the different funds that we're in or is that
Speaker 1: something that we shouldn't be doing? Very often? Does depend
Speaker 1: on where we are in our life close to retirement.
Speaker 1: What's the story on that?
Speaker 3: Right? Yeah, great question.
Speaker 4: So how often if I shouldn't be in there every
Speaker 4: day goof around with it, well, then should I never
Speaker 4: look at it?
Speaker 3: Now?
Speaker 4: The answer the answer to that is I'd say maybe
Speaker 4: maybe once a year to really get under the hood
Speaker 4: and make sure that you have what you need. Generally speaking,
Speaker 4: once properly diverse byed, a four to h one K
Speaker 4: will usually pretty much stay in balance.
Speaker 3: By the way, four oh one K four oh three B.
Speaker 4: You might have a sep ira whatever, which we're referring
Speaker 4: to your employer retirement plan that you were probably putting
Speaker 4: money into every week, every two weeks, every month, or
Speaker 4: however often you get paid. That inflow, that constant inflow
Speaker 4: of cash tends to keep it in balance. If you
Speaker 4: balanced it once, you know, a year ago, and you
Speaker 4: put a bunch of money in, left it alone, it's
Speaker 4: probably still reasonably in bounced. I'm not talking about the
Speaker 4: you know, the dollar amount. The dollar amount could actually
Speaker 4: be down of course because of where the market is.
Speaker 4: But I'm talking about the different sizes of the various
Speaker 4: positions you hold in that retirement plan. That constant inflow
Speaker 4: from payroll tends to keep the whole thing in balance,
Speaker 4: because if something's taking a beating, then it meaning it's
Speaker 4: down more than everything else in the portfolio. Well, you've
Speaker 4: just bought more shares of it because you have put
Speaker 4: the same fixed dollar amount in every pay period as
Speaker 4: you've been doing for years. So that tends to again
Speaker 4: keep it in bounce. So it shouldn't be too far
Speaker 4: out of whack now. On the other hand, if you
Speaker 4: notice that it is way out of balance, I would
Speaker 4: really be looking under the hood for how did that happen?
Speaker 4: And it's not so much about what do I have
Speaker 4: to fix right now. It's more about, Okay, let's the
Speaker 4: next time we go through a crazy cycle like this,
Speaker 4: and granted we're in the middle of this one, but
Speaker 4: the next time it comes around, how should I make
Speaker 4: some changes now so that I don't hit that roller
Speaker 4: coaster later. And it's not about never losing. That's one
Speaker 4: of the guarantees that want to give everybody, you know,
Speaker 4: as a financial planner with something I guarantee my clients Occasionally,
Speaker 4: you're gonna lose money.
Speaker 3: We're gonna lose your money. It's the reality of it.
Speaker 4: My job is to help you navigate through that and
Speaker 4: not avoid it, because there's no such thing. So be
Speaker 4: prepared for that. Learn your history, and then understand the
Speaker 4: levers you need to pull inside your flour one k
Speaker 4: to make sure it doesn't sink your ship.
Speaker 1: All right, well, let's pause. We'll bring Brian James back
Speaker 1: for one more. We'll talk about FED rates and whether
Speaker 1: or not this represents a buying opportunity right now. I
Speaker 1: also want to address the subject matter of you know,
Speaker 1: having money in bonds was always like the conservative, really
Speaker 1: safe place to keep your money, not as high an
Speaker 1: interest return as that in stocks. But you know, I'm
Speaker 1: wondering where we are relative to the bond market considering
Speaker 1: the volatility and all the craziness going on in the world. Pause,
Speaker 1: one more segment with Brian James. It's a twenty five
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Speaker 1: It's a thirty fifty five pair CD talk station. Very
Speaker 1: Happy Monday to you one more with Brian James doing
Speaker 1: that money Monday thing. In terms of buying opportunity, I
Speaker 1: would think, you know, if you're investing for the long term,
Speaker 1: it's always a buying opportunity where the market's up or
Speaker 1: down as long as you get your money invested. So
Speaker 1: what's the story now with this volatility? And I guess
Speaker 1: leading us to a conversation about which direction the Fed
Speaker 1: is going to go with rate? And then my question
Speaker 1: about bonds always the safest investment, but is that always
Speaker 1: going to be the case. We got all these international
Speaker 1: trade disputes going on in China owns a lot of
Speaker 1: our debt in the form of bonds, and what if
Speaker 1: they quit, you know, buying them.
Speaker 4: Yeah, there are lots of concerns out there, and we
Speaker 4: are kind of shuffling the decks in terms of what
Speaker 4: we what we view as risky versus not. But to
Speaker 4: address your first question, yeah, I'm not a believer at all,
Speaker 4: Brian in market timing. And so when we say is
Speaker 4: this a buying opportunity? Should I put some of my
Speaker 4: cash to work? My first question to that person is
Speaker 4: going to be, well, what has your cash been doing?
Speaker 4: Have you been sitting on a pile of cash waiting
Speaker 4: for for this?
Speaker 3: You know? If so, then yeah, absolutely put it to work.
Speaker 4: But I'd have told you that in December two before
Speaker 4: we kind of hit the skits, because again, I don't
Speaker 4: believe in market timing at all. You can be right
Speaker 4: nine times in a row and be wrong the tenth time.
Speaker 4: You go right back to the beginning. So what I
Speaker 4: will throw out there, Brian, though, is this can be
Speaker 4: just to kind of think a little differently about this
Speaker 4: a buying opportunity, yes, but also for some people in
Speaker 4: the right situation, it could be a conversion opportunity. And
Speaker 4: what I'm getting at there is if you have a
Speaker 4: huge pile of money on your pre tax side, your
Speaker 4: four oh one K, your iras, the traditional side of
Speaker 4: things that has never been taxed before, but is going
Speaker 4: to get the daylights kicked out of it by the
Speaker 4: time you reach age seventy three to seventy five, depending
Speaker 4: on how old you are now. Then this, while the
Speaker 4: market is down, can be a great time to go
Speaker 4: ahead and take some of that cash and pay taxes
Speaker 4: with it, convert your traditional IRA to ROTH, and from
Speaker 4: then on, as we recover, from then on, those gains
Speaker 4: are going to be tax free. You're going to reduce
Speaker 4: your require minimum distributions, You're going to reduce the tax
Speaker 4: hit down the road. So on one hand, yeah, when
Speaker 4: the market's down, is it a buying opportunity. Yeah, that's
Speaker 4: pretty much always the case, because eventually it turns around
Speaker 4: goes back up.
Speaker 3: But I think what people need to be.
Speaker 4: Looking at more is not only you know, for buying opportunities,
Speaker 4: but can I rearrange my tax situation? How what's in
Speaker 4: this opportunity for me to kind of benefit and again
Speaker 4: never pay taxes again. There's a lot of moving parts
Speaker 4: to that, but I think that's something that this generation
Speaker 4: of retirees ought to start to learn more about.
Speaker 1: Is there any limitation to converting to roth? I mean
Speaker 1: like financial citations or earnings or anything like that, or
Speaker 1: is just something that anybody can do.
Speaker 3: Yeah, that's the great thing about it.
Speaker 4: So what we tend to think about raw of iras
Speaker 4: as being somewhat limited because I can only make so
Speaker 4: much money to contribute. However, that is not the case
Speaker 4: when it comes to converting. A conversion is not a contribution.
Speaker 4: Conversion means I'm taking money that is already inside of
Speaker 4: an IRA and I'm converting it from the pre tax
Speaker 4: side to the raw side. There is no income limit.
Speaker 4: The only thing you got to deal with is what
Speaker 4: are the taxes that you'll pay. You have to take
Speaker 4: that conversion amount added to your other sources income.
Speaker 3: You also want to be careful.
Speaker 4: You know, if you're close to Medicare age, then it
Speaker 4: could factor into driving your Medicare premiums a little higher.
Speaker 4: But a married couple can get up to two hundred
Speaker 4: and ten thousand dollars of income before that's an issue.
Speaker 4: Single person one hundred thousand dollars. But if you've got
Speaker 4: the ability to do that, it can't even be worth
Speaker 4: taking that hit. When you look at the fifteen to
Speaker 4: twenty year impact of a decision, like this.
Speaker 1: All right now, pivoting over before we part company to
Speaker 1: day Brian James fed interest rates, which were you sensing
Speaker 1: the direction are going to go? They're going to remains
Speaker 1: the same, go up, go down. Where are we on that?
Speaker 4: So yeah, as of right now, so fed FET Chair
Speaker 4: Powell talked last week and said the Federal Reserve is
Speaker 4: going to stand down in any rate moves for the
Speaker 4: time being again waiting for greater, greater clarity was the
Speaker 4: quote that he used. So we've been talking about that
Speaker 4: all morning. He's got the same problem that we do.
Speaker 4: We simply can't see that far into the future.
Speaker 1: Well, are there any reports coming out and that might
Speaker 1: shed some light on which direction they're going to go,
Speaker 1: because I think a lot of people are looking for
Speaker 1: a little relief in terms of like home mortgage interest rates.
Speaker 4: Right so that that's where we would want to see it.
Speaker 4: But unfortunately consumers are still spending. We really haven't, you know,
Speaker 4: we're still in the same mode that we were before.
Speaker 4: And so right now the Chair Powell is not seeing
Speaker 4: a reason to put another cut in place because because
Speaker 4: of the clarity, he can't see in the future any
Speaker 4: further than we can. And the idea that I believe
Speaker 4: underlying all this is his concern that in is going
Speaker 4: to come back quickly if we drop interest rates because
Speaker 4: we simply seem to have that that that ability still
Speaker 4: to run the economy a little faster than it should
Speaker 4: be whenever there's an opportunity such as lower interest rates,
Speaker 4: and he does not want inflation to come roaring back.
Speaker 3: Uh. You know, despite what the President says, President doesn't
Speaker 3: like him a whole lot.
Speaker 4: But it's not going to be very easy for for
Speaker 4: Trump to do anything directly with Powell. But at this
Speaker 4: point we're kind of in a holding pattern unfortunately.
Speaker 1: Well, and going back to our initial conversation about tariffs
Speaker 1: that they may very well have an inflationary impact just
Speaker 1: in and of themselves, regardless of you know, simple laws
Speaker 1: of supply and demand. If you're going to tear if
Speaker 1: something it's going to go up in price, yeah, that
Speaker 1: that's you know, we're simply layering more cost onto something.
Speaker 1: And you know we we can't view this. We're going
Speaker 1: to make these other countries pay these terarffs. Well, that's
Speaker 1: just not how it works.
Speaker 4: That's like saying, you know, a landlord is or a
Speaker 4: landlord is simply going to eat the increase in property taxes.
Speaker 3: No they're not.
Speaker 4: They're going to increase the rents on their renters. It
Speaker 4: all gets passed down to the consumer. That's the difference
Speaker 4: between a consumer and a produce. Consumer is at the
Speaker 4: bottom of the pile and has to eat whatever the
Speaker 4: changes are. Ultimately, now those companies can be hurt one
Speaker 4: way or another because they, you know, maybe consumers look
Speaker 4: the other way, look for different opportunities. And that goes
Speaker 4: back to what we were saying before about international stocks outperforming.
Speaker 4: There are countries out there who aren't going through this
Speaker 4: and have the capability to produce some of the goods
Speaker 4: and services that in the United States are current for
Speaker 4: United States consumers are currently going to be affected by
Speaker 4: the tariffs. So those companies have a great opportunity in
Speaker 4: front of them because they don't have those hurdles.
Speaker 1: Fair enough, Brian James always enjoy our conversations. Very important
Speaker 1: and interesting information and I think solid advice as always
Speaker 1: like to point that out. Get yourself a financial planner
Speaker 1: and take the weight off your own shoulders. Brian James,
Speaker 1: We'll look forward to next Monday in an audition of
Speaker 1: money Monday have a great week, my friend. All right,
Speaker 1: have a good week. We'll talk to you Monday, right
Speaker 1: eight thirty six, right now, if you have carecy the
Speaker 1: talk stations stick around. A deep look at China's internal challenges.
Speaker 1: My next guest, Breitbart's Francis Smart. Tell she's the international editor.
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