Welcome to another episode of the Chicks on the Right podcast where we talk to our friend and sponsor of
this show, Zach Abraham from Oward Capital Management. And today, Zach, we're going to be talking about youngsters, the age group of the twenty five to thirty nine year olds, because there's new data from JP Morgan that suggests that this age group is investing a whole big bunch over buying a house, probably because houses are super expensive and they're looking at the market like this is something I can do at my own level and get some good returns on Is this good? Is this good for them? Do
you advise this? What would your advice be to this age group?
Great?
Great question, And like I was telling you guys off the air, it's I was thinking along these lines for different reasons recently. So what brought this up in my mind was when you run an investment firm like I do, you get approached.
You hear every everybody's investment ideas.
Right, So, whether it's through text message, through friends and family, or at a family party, everybody's got this great investment for you. And what I've learned over my career and then also just through observation is that you there's a there's a way that everybody is best at investing, and and and people. If you are an investor, it takes some while. It's like it's like a sport figuring out what you're best at in that sport, you know what I mean. It takes a while some familiarity, but with
most people, they get far too cute. And And what made me think about this recently was I was approached by some bodies of mine colleagues to get invested in this company, and I was really considering doing it, and then I started looking at what's around me, and I started looking at what we were doing in my own company.
We're in the process of launching an ETF and and these other things that I thought, Okay, if I attention away, I know that I am very good at running my company, and I know that my company has been my best investment for me for me, right, And while this other investment may look attractive to me, I know it's going to steal time and attention a way from an investment.
That I know is going to do very good.
Right. So I made a decision to go, no, you know what, that might be a really good investment, but I know this one is right, and sticking to what I'm good at, sticking to what I know, and I cannot tell you. And this is one of those pieces of advice where you're either going to listen to me now or you're gonna believe me when you're sixty.
Okay, which is if you look at people and I.
Call them squirrel investors, right, squirrel squirrel getting drug off here right, I'm getting into crypto, I'm getting into four x trading. I'm doing this, I'm doing that. Think of how I've never seen a work. I've never seen a work.
Okay, I've never saw like Nancy pelosidelines, like if you just do what she does, a lot of people are doing.
Look, I think this is this is dead, honest truth.
Okay.
I am an active manager of portfolios meeting. We don't use mutual funds and ETFs. We do individual research on individual stocks and we pick stocks.
Okay, So but between.
My analysts and my trader, I pay for about one and a half million dollars a year for those groups for those people to work for me. Okay, when you're sitting at home picking stocks, you are competing against me and my team. That costs me one and a half million dollars a year. You might get one here or there, but you're not gonna win. Okay, my guys worked for JP Morgan and built algorithms.
We do this twenty four hours a day, and they're good.
I will tell you they're good.
Thank you, thank you. So I don't say that to brag.
Okay, I say that because if I went to your job, the same would be true. Right.
So what I tell.
People is either put money into the market on a consistent basis in ETFs and diversified mutual funds, or hire somebody else to do it, unless you're gonna do it full time. And even then, if you do it full time, be open to the idea that maybe you're not good at it. Right, there's this whole thing everybody can be a good investor. That's nonsense, that's total. That's like saying
everybody can be a good CPA. If you'd seen me do math, you'd know that's not true, right, Like meaning, can anybody figure it out and throw money into an ETF and get good results over twenty years?
Yes, everybody can do that.
What about all the latest stuff where Elon is saying stop saving for retirement because AI is going to change the needs for money in general. And then like I'm always freaked out that AI is somehow going to steal all the money out of my bank accounts. Anyway, what are you hearing from clients? What are you telling clients about AI? And to pick to piggyback on that, do you think AI could replace the people like those people that you pay million you know, a million and a half dollars too?
Yeah, hey, so so here here's the deal. Could they and are they?
Yeah, our GUIDs are integrating AI on our stock like like right now, honestly, and I'm not going to because these these these younger guys that work with me, they've they've got great talent, and they're ascending.
And they're very valuable for a lot of other reasons.
But truthfully, AI is already a point where it really replaces the need for a junior analyst in our business, and a junior analyst is primarily involved in they're not making conclusions, but they're rounding you up the information. AI is phenomenal at that, right, But my guys guy and here, and I know you two know this, but speaking to everybody out there, this is another piece of advice that I had to learn.
You can either fight change or embrace it.
Okay, we don't. We don't get to play the game we want to play. We don't get to get play the game that we should play. We get the game that's given to us. Right, So what we have to do None of this stuff matters. What we need to do is how do we integrate AI into what we do so we can become invaluable to an employer. I always tell young people, I go, hey, how do I
move ahead in life? And I go, make things easier and become impossible to live without for your employer, Right Like, once you do that, I've got several employees that are like that, Right, they know that they get compensated way above their age group and their competency. Why I can't lose them and they know that, right, So integrating AI into what we do the other thing. Do you don't
need to save for retirement? And what he's talking about is living at the medium range, right, the substenence living right like not worrying about whether you're going to have.
A roof over your head.
He's not talking about being able to take vacations to Bermuda. All right, So do you need to be saving for retirement? Absolutely more now than ever.
Why?
Because your money is getting printed into oblivion. That is why gold's trading at fifty one hundred dollars. That's why silver is at eighty three dollars. That's why we were buying gold when it was at eighteen hundred dollars and silver was at fifteen, right, because you knew, no matter what, eventually this was going to play out. And one of the biggest sins I see right now is people are worried.
They should be. People are concerned about the financial system. They should be.
People are sitting in cash because they think they're going to lose all their money.
Wrong. Wrong, Wrong.
When when Rome finally tipped over, it's now, I didn't really have a stock market, but if it did, it's stock market. They did in certain ways, they traded things like that, but it would have been at an all time high. Why for the same reason that the best I want everybody to hear this. The best performing stock market over the last ten years.
Do you know where it is? It is in Zimbabwe, Zimbabwe.
Gosh, the stock market has averaged about eight hundred percent annual returns.
Pretty impressive.
Pretty impressive until you realize that over that same time their currency depreciated by about eleven hundred percent a year. Okay, so people are thinking about this all wrong. Government's printing debt. We've got all this debt, we can't repay. My stocks are going to crash. They might for small periods of time. What's going to happen? Look at gold, look at silver.
All of this money needs places to go. Now, does that mean we should be putting it in tech companies that make less than a billion dollars of profit and are valued at five hundred billion dollars?
Probably not right? What does it mean we should do?
Boy, there's a lot of things out there, like you know, called natural resources, commodities, metals that nobody's interested because we live in the technology age. Well, guess what makes the technology run?
Right? Power?
Copper, silver, oil, right, all these things. Guess where we haven't invested any money in the last fifteen years? Copper, gold, silver, oil, metals, right, and so on top of it, these sectors are historically undervalued, so we just you have to invest, but you cannot sit there and you can't chase squirrels. Right when we've got governments printing this kind of money. You have to be averaging a return that is in excess of that inflation rate. And don't look at three and a half.
It's probably more like five and a half six in reality. Right, And and but you can't do the square. You can't decide this week. I'm going to be a real estate entrepreneur and you need to start getting returns now. And notice I didn't say you have to call us, right, I said you can do it.
On your own.
But unless you're going to do it full time, put it in ETFs that are diversified. Just trust me as opposed to believing me forty years from now when you haven't made the right decision.
And let's face it, it's kind of easy for Elon to say, hey, don't say for retirement. Right, He's never gonna have to worry about that, right, Yeah.
And he And what he means, right is if you are worried about not having a head over you know, a roof over your head, if you were worried about not being able to do long term care and having a bunk in an alley, he's saying, don't worry about that.
And I think he is correct.
When we talk about retirement, I think we're we're looking a little bit.
Further than three hots in a cop right, So.
That if we want that because I want some trips from Muda, I want some good meals, right, I want to keep dining. Right.
Yeah, we're gonna need to invest to do that.
Yeah, okay, that makes all kinds of sense. So it sounds like this sounds like this age group is doing the right stuff.
Then yeah, they.
They are, but don't But again, I see them chasing a lot of individual stocks, and I see incredibly bad reasons for being in those stocks, and I would encourage them take a bit of humility, take a humble pill, admit you don't know it, and bet on the sure thing so you don't look with inflation doing what it's doing. If you have the discipline to sit in real assets, you will do tremendously.
Well over the long period of time. And they have time to do that, yes, yes.
But if they get caught squirrel investing, you know, squirrel over here, getting drug over here, getting drug over here, what happens is you spin your wheels. And I cannot tell you how many people I've seen do this, Right, in an effort to hit a home run.
They go thirty years without getting on base.
Right, get on base, get some singles and doubles, get some wins.
As you do.
You can take some shots over here and over there, but don't you know, get on base, just get on.
It, and then you can still buy that house. Yeah, yes, yes, that's exactly right.
So if they're investing wisely, then they can save for immediate stuff and retirement. And you are the best person to advise them on that. How can people contact you to learn more?
That's so good, that's so good you are.
Yeah, we we got to get we got to get here and do some like infomercials and stuff like that. If you car wait, there's more, right, but yeah, now you're pretty easy to find and go to Bullworkcapitalmanagement dot com or just look for video feed on YouTube and Know your Risk podcasts Know your Risk podcast dot com.
Not hard to find.
Thank you, Zach, Thanks.
You, ladies. Investment advisory services offered through Track Financial LLC and SEC Registered investment advisor.
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