0:05 spk_0
Welcome back. It’s me, Kenny Pulcari, and this is Trader Talk at Yahoo Finance. And today, we’re gonna be talking to Steve Sosnik, who’s the chief market strategist at Interactive Brokers, along with Brian Sozi, who’s the executive editor here at Yahoo Finance. And it’s gonna be an exciting discussion because it is big tech week. There’s a lot happening this week. We’ve got, we’ve got 5 of the major companies reporting this week. On Wednesday night, we’ve got Meta, Amazon, Microsoft, andAnd, uh, Google and on on Thursday we’ve got Apple. And so let’s get right to it. Steve, first of all, thank you for joining us. It’s a pleasure. And Brian, this, there’s a shift for us. It’s usually me in that seat and you in this seat.
0:43 spk_1
I’m only here toask you why or how $8 gas will impact net earnings. Penny, come on, baby, getout of me.
0:48 spk_0
Let’s
0:48 spk_1
go.
0:48 spk_0
Let’s go. All right, so Steve, let’s start first about, about just kind of your overall view of what this week is gonna bring and what people should be thinking about.
0:56 spk_2
Well, there’s a lot to unpack, Ken. I mean, first of all, Wednesday is like the mother of all market days, right? I mean, it, it, it’s in theory, it’s volatility personified. In reality, stuff doesn’t always work out that way. And let me explain why. First, we have the Fed meeting at 2, you know, 2 o’clock, we get the announcement, then 2, then 2:30 is, is Powell’s
1:15 spk_0
press, which is interesting because this is Powell’s seemingly so, his last, his last, uh.FOMC meeting.
1:21 spk_2
Yeah, because, uh, over the weekend we learned that Tom Senator Tillis is going to, um, support Kevin Warsh. Um, personally, if it were me, he, it didn’t really meet the, the, the announcement from Jeanine Pirro did not meet his criteria because it says, oh, by the way, we reserve the right to reopen this. And wasn’t the other criteria supposed to be an end to the Lisa Cook investigation, which they’ve been silent about. But I’m not gonna, I’m not gonna throw a senator under.The bus. It’s not my job. Do it. Do it, Steve. I just, I just kind of, we’re over that. I just kind of over it. It’s behind us. I, if, although if I were Powell, I would not leave the board of governors until this is well and truly done because that little, that one, that one line at the end of Piero’s statement would freak me out as, and he’s a, uh, he’s a lawyer. He doesn’t need my legal advice. That would be mine to him.
2:08 spk_0
Ithink that’s just Janine probably.Protect yourself. I don’t know. I don’t think they, I, I think it’s
2:13 spk_2
done. Well, he’s, in any event, I think he is done as, as, as, as chair, and that’s, so this, this will be his last hurrah. They’re not, I, I think, you know, there’s no expectation that they’re gonna change policy, and he’s, and, and to a certain extent, what can he say? It’s gonna be more of like a val valedictory address.
2:30 spk_0
Well, so let me ask a question before we move on to tech. To that exact point. Is what he is going to say important or not? Because this is it. Right now, it’s gonna be the war era. So is it that people aren’t necessarily gonna pay attention or is he gonna have the opportunity to lay out the narrative about where inflation is, where he thinks growth is, and what should happen?
2:50 spk_2
I think the latter. I’d like, I’d like the unvarnished Jerome Powell. Like he’s always, I’ve, I’ve often called him Goldilocks in a suit because he’s always managed to be, even though he’s not an economist by trade, the, the proverbial two-handed economist, right? Like, you know, yes, things are bad, but this is why it’s good, or flip side, this is why it’s good. But by the way, here are the risks.
3:12 spk_0
And Brian, feel free to jump in here and tell us,
3:14 spk_1
tell me, you know, I would love to just actually put a photo of today.Jerome Powell compared to when he first started, like, I think, yeah, I think he looks totallydifferent.
3:20 spk_0
But
3:21 spk_1
look,
3:21 spk_0
that happens to everyone. Yeah, I know
3:22 spk_1
it
3:22 spk_0
does,
3:23 spk_1
right?Not, not us though, not us, except, except for us, you know, I, I, let me push back on that because I, I don’t want to say that the market can care less what the Fed chair has to say. I mean, it’s the Fed chair. I mean, whatever he says in the economy, rates your name is important, but this market, guys, you guys know this better than me. I mean, with the trading experience is so fixated on all things AI.And the momentum in semis and, and you name it, I don’t even know. I don’t know if Pal steps up to that mic and he says something hawkish if these AI stocks take a tank. Well,
3:50 spk_0
that’s, that’s my,
3:51 spk_2
that’s my question. That’s part B of, that’s part B of the volatility on, uh, potential volatility on Wednesday. Thank you, thank you for that. Let me. Let me take, let me take Ken Jones. Thank you very much for that lead-in. But yeah, that’s exactly it. Now here’s the thing with, here’s the thing with the earnings that come out if they.In theory, if they all move in one direction or the other, up or down, my gosh, you know, I, I, you know, we, we could have a giant postmarket event. Rarely, that’s the way it works. You usually get some up, some down, and that just becomes a, you know, sort of a wash from an index point of view, even though individual stocks might move dramatically.
4:29 spk_0
And I, and then to your point, I think that’s exactly the point, right? It’s all gonna be focused on this spend, this capex spend, and what are they doing and when is it gonna be a return on investment?
4:38 spk_2
Well, the interesting part to me is if I were gonna, you know, I’m thinking the way to hedge these earnings is either 1, you do it in the individual stocks, or 2, you do it with socks. And here’s why. I mean, we’re taping this, it looks like, it looks like as we’re taping this now, Monday, Monday around 120.Sox is breaking its its 18-day winning streak, and we could talk about how unprecedented that is. I’m sure we could have have like 50 stats. I know you do. I, I do have some, but, but let me, but let me, let me just, let me not, look, we’ll get to the, we’ll let our, I’m just like I’m making it too easy for you, yeah, but so to me, but that’s the key. If the, if the these, if the big hyper scaler say.Damn the torpedoes, we’re gonna keep borrowing money. We’re gonna keep spending money. We don’t care if the stock market, we don’t care what the investors think about, you know, whether we’re changing from asset-light businesses to asset-heavy businesses, blah, blah, blah. If that spend continues, stocks is the way to go. If they say,You know what, we’re taking a, we’re taking a little bit of a breather here. That is not what semiconductor, that is not what a 50% rally in semi in socks is pricing in. And so to me, that’s where, that’s actually where I, I, I would consider hedging with socks as opposed.As opposed to hedging with, with some of these specific stocks or hedging with Qs or, or, you know, or something of that nature because that’s, that’s where it’s going to be reflected. You’re gonna get, you know, I, I doubt that they’re, I doubt that somehow the semis will just be unchanged after all this.
6:07 spk_1
I would be, I’d be, I’d be worried going to these, this max 7 earnings, and I, and I’ll try to keep it like as simple as like possible when those Tesla earnings hit the wires.And Elon, you know, they didn’t say anything in the, in the press release or the slide deck, and you hop into the earnings call 15 minutes. Elo’s like $25 billion in capex. They were at $20 billion coming into this year. That company only spent $8.5 billion last year in capex. This is a meaningful.Acceleration and what did the market do? It sent Tesla shares down. Why shouldn’t we expect the same damn thing from all six of these companies coming up, maybe except Apple because they farmed out its AI to Google, so we’ll forget them for a second. But I’m looking at really some potentially big capex from all these companies and all these stocks get hit.
6:47 spk_2
Well, the theme before, the theme until, you know, until recently was, we’ve switched from all cap spending is good, and we’re just gonna reward companies for spending money to, we’re going to, uh, we’re, you know, we’re gonna be more judicious about it, and we’re going to be concerned about whether these, the business models that we loved about these companies is changing. These, these companies to me hadSort of magical business models, right? Like very few, very few assets, very low fixed costs, insanely high margins, and fewer
7:17 spk_1
people too, and fewer people. I mean, they’re firing thousands of people.
7:20 spk_2
Well, that’s, that’s another key, right? I mean, but meta meta meta is telling you, Meta is telling you that maybe we’re, we got to tighten the belts around people. Microsoft is in a more subtle way. We’re gonna offer 7000 people early retire.Determine, um,
7:33 spk_0
but let me ask you a question. Let go back one second. Do you think that that’s all AI, or do you think any of it is like just an oversupply, like they’re just cutting the fat because they so overhired in 22, 23, 24?
7:45 spk_2
Oh, some of each,
7:46 spk_0
I mean, right, so I don’t necessarily think the, you know, they were trying to create this panic. Oh my God, AI is, I don’t think it’s
7:51 spk_2
that. No, no, no, I, and, and I’ve talked about this. I, I know, I know, um.Joe Bruce Willis is a friend of Yahoo Finance. He and I have had this discussion, you know, offline. I’m like, you know, not at, not in great lengths, but sort of we were in a room together and I said, you know, isn’t this a lot of, isn’t, isn’t some of this just cutting the fat, you know, they overhired, they overhired at 21, 22, and now they’re getting rid of it
8:12 spk_0
now, and they’re using AI. I think part of it is they’re using AI as part of that excuse. Well, a
8:17 spk_1
lot, a lot of it, the shit is about.To hit the fan, all right, for these tech companies, and I talk to a family podcast. I, I get it. I get it, but look, I talk
8:25 spk_2
for, for the record, the, the, the, the, the executive editor. I love, I, I wanna rating, not, not, I’m
8:31 spk_0
so passionate about
8:32 spk_1
this topic. So I, I, I try very hard. I had, I had a conversation with Circle Circle’s co-founder Jeremy Allah. We, uh, we were hanging out at the economic club. Like I was feeling good. We gave a speech. Like it was just amazing stuff. But anyway, he told me, Brian, uh, why you’re seeing all these layoffs now.is because Wall Street is really going to scrutinize the hell out of these companies in a new way in the back half of the year. So Jeremy Lehr, co-founder of Circle. So he said there is a new level of scrutiny about to come to all these tech companies, and they are not done. They are not. This is their first, I would say, series of bloodletting in their attempt to appease the street, and I think you’re gonna see a lot more coming next year. And there are workflows really starting to be redesigned inside these companies, which for me, it scares the hell out of me.
9:12 spk_0
Well, OK,
9:13 spk_1
but, but it’s good for,it’s good from a stock perspective because you can unleash greater profits, fetch a higher multiple, and
9:19 spk_0
everybody makes layoffs don’t necessarily, they’re not necessarily bad for stocks,
9:23 spk_1
right?
9:23 spk_0
People, they view investors view that as a positive because they’re becoming more efficient. They’re getting rid of the waste. They’re getting rid of the fat, right? So that’s viewed as a positive
9:31 spk_2
as, as long as it’s not trying to grow by shrinking. Now, you know, and especially in Meta’s case where, you know, we forget because the stock performance has been, has been so good, they incinerate.Gated billions of dollars in value on the metaverse. And so, you know, I, I don’t, I, I haven’t really gotten into the breakdown of who’s getting laid off and where, but, you know, they, they spent, uh, they, despite the stock performance, they spent a lot of money in, in kind of a rather foolish way. And I think also to some extent, this is, this is going to be the next year or so where the rubber meets the road because we all know that they have to be in it to win it in terms of AI spending and in terms of the AI race, but,They’re not all going to win it.
10:13 spk_0
No, they’re not. They’re not. But let’s let’s go back to metaphor a minute. You know, they spent stupid money on the metaverse. This AI trade is not the metaverse. No,
10:21 spk_2
no, no, I, I know, I know that, but that nobody
10:23 spk_0
was gonna use that. No, agreed, but, but, but nobody was agreeing. Why they thought they were was
10:27 spk_2
unbelievable. And so, and so I don’t know. I don’t know the breakdown, you know, are, are, are 8 of those 10,000 people.Are they working on the metaverse? Well, I feel bad for them. I, I, of course I do, but it’s not necessarily, you know, that kind of
10:40 spk_0
thing. Are you guys in the camp that AI is gonna completely destroy, or? Do you think they’re gonna be new jobs created the way there is in every industrial revolution?
10:46 spk_1
I think you knowwhere I stand. I, I, I think initially jobs are being eviscerated. Let me give you another example. We had, uh, I had dinner like two months ago.Uh, small media dinner with Robin Hood’s co-founder Vlad Tenev, and I’m watching Vlad and he’s talking, and he had a bunch of, um, I guess AI agents helping plan his day and planning his schedule, and I, I didn’t pick too much up on it or think too much about it at the moment. Went home, I’m thinking that’s a job of maybe 3 or 4 assistants, maybe 5 years ago. Like he had agents planning out his next day, working on programs, like I just, I’m seeing the shift in real time, and I don’t know what the next.Job is going to be
11:25 spk_0
well, I, well, I think that’s right. You don’t necessarily know what the next job is, but listen, during the industrial revolution when we, you know, in the early 1900s when they were losing jobs, did, did they know yet what the new jobs are gonna be? No. So there was this transition period, and there’s gonna be, there’s gonna be a group of people that are not gonna be able to transition, but then.Then, then there’s gonna be a generation coming up that suddenly is gonna, there’s gonna be all these new jobs. I, I, that’s why I think it’s
11:47 spk_2
gonna, you know, I mean, think about the big, the big changes that have happened to an industry and society, right? You know, railroads in the late 1800s. I mean, you know, OK, so you, you, you eviscerated a generation ofYou know, stagecoach drivers. I mean, but obviously the railroads brought more productivity. Radio and media and the radio in the early twenties, uh, you know, the moving, moving away from more ancient history, the internet, the internet era, right? I mean, the internet was, was transformative, and I think a lot of jobs, or even here, take something like word processors. How many clerk, how many secretaries and stuff like that were lost their jobs.But initially, but then they all, they, everybody, you know, remember we have a 4.4% unemployment rate right now, which is still
12:35 spk_0
historically there are jobs out there historically low,
12:38 spk_2
historically great. So I, that’s one thing I don’t, you know, 9, what that tells you is 95.6% of the people in this economy who want a job have a job. And so that’s historically great. Will there be dis dislocations?There always are, but you know, if you believe that AI is going to unleash a wave of productivity over time, that will, that will lead to other benefits somewhereelse
13:04 spk_1
don’t see AI permeating yet. It’s, it’s at the, I’m trying to figure out right now, guys, if what we’re seeing at meta.Amazon, Microsoft, with these layoffs is about to trickle down to other sectors, and I haven’t seen that yet.
13:15 spk_0
I guess that’s the question. Well,
13:16 spk_1
how is it being AI being used on a railroad? Unclear right now. I mean, maybe it’s, it’s used in various parts of their technology, but you can’t use an AI agent to build physical tracks. So I can’t, I, I’m not sure yet how this goes. No,
13:28 spk_0
I agree. And listen, there are AI agents.You know, you call up Xfinity or something and you’re asking a question, the AI agent comes on. It’s unable to answer the question. All it does is give you other, other things to choose. Well, if it’s not that, well, no, it’s not really answering my question, so it’s very inefficient, quite honestly, right? And, and there are a bunch of those places where that’s true. And, and, and
13:47 spk_1
Geico insurance. I was trying to get my windshield replaced.He’s like, what a terrible experience. I had to talk to like 5 different agents. I mean like Joey, Michelle, Michael, just give me the damn windshield.
13:58 spk_2
I mean, last night very specifically, I signed up for a, for a business, for an options conference in that’s being held in Quebec City, the Canadian, for, for your Canadian option traders out there, the Canadian annual derivatives, very me, um, and.American Express rejected it despite the fact that I had just used my American Express card to reserve the hotel room in Quebec. They rejected they didn’t like that I booked through a because it was through Eventbrite. They didn’t like that there was an Eventbrite reservation in a foreign currency. It seemed weird. Now, who in their right mind would steal my American Express card to book a, a ticket to an options conference in Quebec City? No, no,
14:35 spk_0
but the agent, the AI agent doesn’t.No sane
14:38 spk_2
person. So then I went through, and so even there, now, to be fair, once I got a person, it was fixed. It was like fixed within, within a microsecond, but you still have to go through the layers. And so to your point, Kenny, it’s, it’s, it, it will add efficiency and in theory, if that AI agent would better designed, now, I like that American Express is watching my card. I like, I like that they’re, I like that they.Put this speed bump in and particularly not at a time that was terribly inconvenient to me. Um, but it, it, it’s not, we’re not there yet. And, and again, to my, uh, one of the points that I’d like to bring up is, I think back to, you know, people always say, is this 1998? Is this 1999? Is this 2000? We can have this discussion about markets and, and, and the 18 straight days of socks and where I think that might be telling us. But regardless, um,You know, think about where we were with the internet in 19 in 1998. We, we would be, you know, we’d be hooking up through AOL or CompuServe. Our search would be done, no offense, on Yahoo. Wait, but
15:42 spk_0
youremember how you used to hook up? You have to dial it. You had
15:45 spk_2
to
15:45 spk_0
wait for the 3. You had to wait for the 3 ding ding ding.
15:47 spk_2
We heard that like DSL modems might be.Coming. So, you know, meanwhile, now, flash forward all these years, our, the, the company I work for is completely transformed. We were, you know, we were options market makers, taking advantage of the electronic trading abilities and, and, and the, the internet as it existed then. And now we are a full-fledged internet company and we are using AI.Uh, to the extent we can for, for the amount of coding we do, but we, our headcount hasn’t shrunk as a result of this.
16:18 spk_1
Yeah, I’m listening to you guys, and I, I think this makes a perfect case for, for your socks, but, I mean, uh, AI, AI, more chips, more chips, more chips, more chips, and it’s not just Nvidia. I mean, look at A&D just crossed a $500 billion market cap. I mean, AMDC Alisa Sue, I mean, she is amazing. The work she has done there that she’s came.There has been mind-blowing, but that rally has been humongous.
16:39 spk_2
Nvidia put on $1 trillion in market cap in a month. OK. Let that, let that sink in. Think about that. Let that sink in. Or the semiconductor stocks, stock index, which was not exact, you know, you could argue whether it was fairly valued or, you know, or not, but it wasn’t by any means historically cheap.Just got rerated by 45% in, you know, in 4 weeks or so. That’s, that is.So either the market was complete, so there’s an inefficiency somewhere. Either the market was completely wrong before or it’s wrong now, and the answer probably lies somewhere in between.
17:19 spk_0
But I also think that the market had taken, the broader market had taken a hit because of the whole Iran thing, right, when that happened. Tech, we came into the year, and parts of tech were weak to begin with because there was that sense that they were stretched, and they probably, some names would probably stretched, so there was that kind of normal.Clarification, right? That, that kind of where we’re shaken it out seeing where the body’s at. But once we started to get more positive news on a run, that’s when you start the whole thing explode. Because then investors, and there’s plenty of money out there on the sidelines, ready to go, they were looking at tech as an opportunity that had gotten mispriced, and they thought there was opportunity. And now we’re coming into earnings season.
17:56 spk_1
Can I, can I, can I ask you this, how normal is it to have $1 trillion added to market cap of a company in a month, OK,
18:03 spk_0
for the,
18:03 spk_1
for like the, the, the audience out there. Like that’s
18:05 spk_0
not normal, normal. OK, thank you. That’s why I
18:07 spk_2
brought up that statistic. It’s so beyond the, the some of what causes that. All right? OK, well you, you go, here’s the you asked me to bring statistics. I have, um.We, we fit last week, we broke a three-week string of 3+% gains in the S&P 500. Since 1980, that had happened twice. Once in 1982, in August of 19 August, September 1982, which was when Paul Volcker basically,The birth of the bull the birth of the bull market. Basically said we are done fighting inflation. So that was a huge change in monetary policy after, after a prolonged bear market, at best sloshing around, at worst prolonged bear market. The other one was May, June of 2020.Which, as you remember, that was when QE got unleashed. The Fed had already cut rates to 0%, basically, but the QE was unleashed and fiscal stimulus, I don’t remember if it was exactly implemented at that point, but we all kind of got the sense that stimulus checks were coming. What happened here was,We went from outright shooting in a, in, in a, in a hot war to stalemate in a not so hot war, with still none of it really being resolved. And, you know, a lot of the headlines, at least from a very broad macro point of view regarding the war where each time that there’s progress that could be announced, you know, about talks, we went up and each time those, those talks, each time those didn’t come to pass, we really didn’t come down.You could, one of the, you could actually almost make a perverse case that the market prefers the stalemate where, where you can, you know, endlessly buy the rumor and not sell the news to actual the news. I, I’m not gonna go that far, but, but it is a bit, you know, right? I mean, the oil market has stopped, oil prices have stopped going down and they’ve started rallying. Bond yields have started lifting a bit. So the oil markets and the bond market are, are kind of out of gas on this one.But again, so this is where, this is where earnings season becomes crucial because it’s all about earnings now because I don’t think, because right now we’re being, there’s no reason to believe that oil prices are coming down anytime soon or that price pressures as a result of that or demand reduction as a result of that is going to, is going to abate. All right,
20:25 spk_0
so let me ask you, Wednesday afternoon, these are the 4 numbers are gonna come out, right? It’s Microsoft, Meta, Amazon, and, uh, Google. They’re coming out.What’s your, what’s your kind of broad view? Do you think, do you think that, you know, Meta is gonna get hit because people are gonna be concerned about the capbacks, but yet, Google is gonna be fine? Do you think it’s gonna be all the same? Do you think, do, do you think there’s gonna be differentiation?
20:48 spk_2
I think there will be differentiation, but I can’t, I can’t tell you which because I’m not an analyst on either, on any of these, nor a
20:54 spk_0
trader. Tap me in, tap me in.
20:55 spk_1
Uh, Microsoft, Microsoft, uh, I’m really concerned about the quarter over quarter growth rate in, um, Azure. That is always a sticking point in those couple of minutes right after earnings, that growth rate, if I’m right, decelerated a little bit in the last quarter. Market did not like that. Amazon, same deal, very focused.On Amazon Web Services sales, that number is poised to accelerate this year in part because of that, uh, further tie up with Anthropic. Very good. Apple. I need to hear John Turnus on this earnings call when they report. I need to hear his voice. Not a lot of people know who the hell this guy even is. He’s about to take over Apple, and then Google, that company has been hitting home runs the past 4 quarters. I want another home run, and the market expects another home run, right?
21:34 spk_0
But Apple, this is going to be Timmy Cook’s last.Last earnings announcer, right, he’s still on, I think he’s, I think Fergus doesn’t come until
21:42 spk_2
the fall. September 1st. He’s, yeah, he’s up, so we may get, we may get Cook in July. So we’re not in July, right, because he’s stepping down. He’s stepping down September 1st. We should get, we should get him on the July call. But to Brian’s point, I mean, I don’t know.
21:55 spk_1
I don’t know, but, but I forgot who it was. Somebody made a
21:57 spk_0
good point to me. I’m not even sure anyone who I had no idea who this guy was.
22:00 spk_1
Yeah, he’s like a rock star internally, but to the outside world, to like the average investor Ernie Apple, they haven’t heard of this guy at all. But the thing is, I don’t.I don’t think they would have announced this CEO shift if the quarter was going tosuck.
22:12 spk_0
I agree. I agree. And look, I’m in the position that it’s funny, I own Apple. The firm owns Apple. I’ll just, I’m gonna die with my Apple. Apple is not a name that I trade. I’m just gonna die with it. So, you know, if Apple gets hit, I’ll use it as an opportunity to buy more, right? If it takes off, I’m not gonna do anything. But, but, and that’s the same way with Microsoft, I feel the same way. I don’t own Meta and I don’t own Google. I missed those boats. I just never get in.Um, but Microsoft, I still view as a, as an opportunity because it’s still, it’s still negative on the year, um, even though it’s had this big rally off the lows, uh, but I’m looking for that one to actually, if that gets hit, I’d be a buyer of Microsoft.
22:49 spk_2
Well, and, and I think that, and that’s a very still a very pervasive attitude. That’s why.That’s why we never really sold off in the first place, right? I mean, we, you know, you, you both have been around for a long time, right? The, the, closure of the Strait of Hormuz was the blackest of black swans, right? We were supposed to, the, the, what I’d always planned for in years.Of managing risk for an options for an options market-making book, um, was you’d figure you’d get $150 to $200 or a little oil, an immediate 10% correction in the S&P 500, and a big flight to quality in the dollar in the short end.We got maybe to 144 and dated Brent. We barely got to, eventually, we didn’t quite get to an S&P correction. We, we kind of eked it out in NASDAQ. And actually, we had kind of the opposite because short end rate, we did have a, a bit of a run in the dollar, but short, but that was largely because short rates went up because of price fears and taking out 50 basis points of, of cuts. If I had said to you under any normal circumstances,We would be in an environment where bond yields would go up 35 basis points. We would take 50 basis points in cuts off the table, and yet stocks would zoom higher and be at all-time highs.You probably would have said this sounds preposterous,
24:14 spk_0
right, but, but that’s what happened, but it happened. But it
24:17 spk_2
happened, and that tells you the power of the by the dip mentality, and I think it’s in many ways generational. I, I, I agree. I think, well, they’ve been rewarded.
24:27 spk_0
Well, that’s, that’s rewarded.
24:28 spk_1
That’s how there’s.There’s been a debt. You bought it and yeah, you might be come under pressure for a little bit, but by and large you’ve been, you can make bankbingo,
24:37 spk_2
you too, that was exactly it. You’ve been rewarded. If you’ve been through a couple of cycles where the rewards aren’t, don’t, aren’t always immediate, um, you’re not so quick to, you know, you know, if, if you came of age after 2009, which, you know, which a lot, which at this point a lot of, uh, individual and professional investors have.You haven’t sat through a long downturn. You know, you, you had a, you had a rough call it 10 months in 2022. Maybe, you know, a down year very slightly in 2018, which, by the way, were midterm election years, which we’re in now, um.And, but other than, and, and, and the, and in 2020, you had 2020 and, and April of 202025, you had substantial downdrafts, drawback, uh, drawdowns, but they were resolved incredibly quickly. So why wouldn’t,
25:28 spk_0
why
25:29 spk_2
would you, why wouldn’tyou
25:30 spk_0
do
25:30 spk_2
this?
25:30 spk_0
I’m with you. Listen, I got two things to say. Number one, we’re at the end of this podcast. Oh, time just goes by. We could talk about this for another hour for sure. I just want to ask one question.Did you two make this up today? You’re both wearing purple shirts. I mean, it’s very interesting. It’s almost the same shirt.
25:44 spk_1
Look, here’s thething. I, I knew, I knew you guys were both had come here looking really cool, and I didn’t want to wear my same getup I wore on my show. So I came here, rolled up my sleeves, and I grabbed her shirt.
25:52 spk_0
There you go, gentlemen. Thank you very much. It’s always a pleasure. I look forward to doing this again. We should do it in about 6 months from now just to see how this all played out. Absolutely. We’re gonna be right. Thank you. All right. Until the next time, take good care.
26:09 spk_3
The following content is not intended to be financial advice and should not be used as a substitute for professional financial services.
