M Jeremiah was a gold frog. What a good friend of mine? Never do the single word is that? But I help me joy to the world. Folks. That was a great song, wasn't it? Three Dog Nights? I mean, that was a that was a song and there's a little meaning to that song. But let's let's wait for that. Actually, if anybody knows why that song is making our headline song today, you can kind of call in and let me know. But it's going to be big. We're in a good spot, folks. Thank you for tuning in. I'm
Stephen Bouchet. I know that I was absent yesterday. I thought I was going to be with you yesterday, and then you know the dynamic dynamic duel duo. Man, my tongue is tied. It's still early on a Sunday morning. And with that in mind, thank you for tuning in. Sixteen days, they'll spring, although today is going to feel like spring. The weather is just we don't even have to wait for spring. The flowers are
going to be blooming. Things look good, folks. The rain's going to clear out, maybe a little cloudy, but it's going to be warm for those skiers. You may not be heading to the mountains. But maybe, maybe, just maybe you're going to be out for a walk. The fault mines are open if you have any questions, any questions, whatsoever. One eight hundred talk WGY one eight hundred eight two five five nine four nine. So yesterday Vincenzo Testa, CPA, CFP and Ed Wilhelm our portfolio. They
said, Steve put us back in. They did the show last week, they did a great job, And they did the show again yesterday and they did a great job. I'm telling you, I'm surrounded by nineteen soon to be twenty professionals, where this week probably will have twenty professionals that will be surrounded by And I'm telling you any one of them can fill in for me on the radio. And they do a great job, just a great job.
One eight hundred eight two five fifty nine forty nine. So you don't hear me talk about this much, gee, you know, I mean listen. Eighteen ninety two, Thomas Edison merged several of his companies to form the Edison General Electric Company. Over the years, GE grew into one of the largest most influential conglomerates in the world, operations spanning various industries electricity, aviation,
healthcare, renewable energy, and more. If you go back to the thirties, GE moved its headquarters to New York City, but they're really Schenectady, is what GE is all about. In the fifties they had about thirty
two thousand people working there. In the seventies, you know, the numbers started to accelerate a little bit, but the peak probably right after World War Two, GE had you know, probably forty five thousand, artificially high forty five thousand employees and Schenectady and Schenectady alone, you know, so let's just say it's forty thousand employees in Schenectady. GE was a force to be reckoned with. Back at the turn of the century, GE was the largest,
believe it or not, the largest company in the world. Today it's Microsoft, followed by Apple. GE was the largest company in the world. So GE has a lot of history, especially for us in the upstate New York market. I mean, in the in its heyday, GE was was was truly, it was. That's it. That's what we were about. GE. You know, today we don't have a whole lot going on we have, you know, I don't know what the number is, probably just a few thousand jobs now GE at the at the plans, but the share price
at GE. And as I said, you haven't heard me talk about GE in quite some time, but I think I think I just need to, you know, bring it up GE. It's when you think you go back just five years ago, the SMP literally has has doubled in those five years. GE was really almost out of business October twenty eighteen. John Flannery just been removed as CEO after a year at the Helm only a year. Listen,
Jack Welch was the man. I used to say, because I've been doing radio for twenty nine years, so I've been doing radio since nineteen ninety five. And I used to always say, you may not like working for Jack Welch, but if you're a shareholder, even if you're a worker, and you had GE shares in your portfolio back in the nineties, you should
have been sending him a Christmas card because he was the man. And then some pompous, arrogant individual named Jeffrey mL took over and kind of drove the company into just you know, a deep, dark, you know whole This guy was so pompous. Now, it's one thing when the CEOs of these publicly traded companies, they need to get here or there. And if they're traveling internationally, you know, they're traveling privately, folks. They're not waiting
in the TSA line, sitting in the back of the plane. There. They got their their own jet. But this guy was so pompous he used to have a backup jet follow him just in case the jet broke down, just so he wouldn't be inconvenience. Now that's arrogance, that's pomp being pompous. And his his his results were just you know, dismal, to say the least. So he had you know, John John Flanner, he lasted just a year. Profitability was declining, he was losing money. You know,
they acquired Alstum's power business. That was just disastrous. Investors were forced to sip through dozens of pages of disclosures to gain a picture, just a slight picture of the company's financial condition. And worst yet, the debt was over well over one hundred billion dollars. Debt over one hundred billion dollars excluding cash and insurance liabilities. Free cash flow, you know, deteriorated it was, Gene was just not the place to be, just not the place to
be. By by the end of the year, you know, GE was down eighty percent from its peak. Its peak was the year two thousand, folks, that was GE's peak, the year two thousand. GE hasn't seen that peak. Since you think of all the companies that are making new all time highs now, GE hasn't seen hasn't been anywhere near where it was at the turn of the century. And you've heard me tell this story a lot
of times. We had a prospective client that came in like right in nineteen ninety nine, and I remember this appointment vividly because I call it like it is. Our clients know that I don't mince words when they engage services of me and my team to manage their wealth. We take it very seriously. We don't mess around our clients that their trust in faith in our ability to
help manage their wealth. We do a good job. And before we let a client shoot themselves in a foot, financially speaking, I'm going to be shaking that client. I'm going to be really in that client's face and letting them know the repercussions of the decisions they may make. Now, if they still decide to shoot themselves in a foot, that's okay. They did it
on their own demise, but with information. With information, when you're well informed and you make decisions, if they're bad decisions, you can't say you did it blindly. You were well informed. And this prospective client was sitting in front of me, and I'll never forget it, Angela Saysney was in the meeting with me, I believe, and she and I still talk about it all these years later. He had like ninety percent of all of his
investable assets invested in GE. And I said, well, one of the first things we'll do is come up with a game plan and try to divest yourself of some of those G shares, because it's just too risky for you to have all of that. Well, he he gave me a tongue lashing, telling me what a great company GE was, a Abba dabado and he's worked there and he's got all these GE shares. And I thanked him for working there and giving GE a good day's you know work. But he shouldn't
have ninety percent of his investable assets in that company. Any company. I don't care how good the company is. And as I said, back then the year two thousand, GE was the biggest company in the world, in the world, in the world. So he looked at me, he says, I don't think we can do business. I said why, He says, we're not selling my GE shares. And I begged him to rethink it.
And I often wonder today how he's doing because he lost Well, you heard me, And you know, at twenty eighteen, eighteen years later, GE was down eighty percent. That means he went from living high on a you know, living the high life. And if he took my recommendation of divesting those GE shares and was well diversified, he would have done just fine,
just fine. But and you know, if I go back to those days, the SMP is up about two hundred and fifty percent since the turn of the century, GE is still down fifty percent, down negative five h percent from the turn of the century. And it's it's it's just sad. But we're not talking about way back when. As my wife taught me,
don't trip over what's behind you. So let's talk about GE today. So Ge, you know, it was, it was bad, and then you know who comes in and outsider and outsider Larry Cope, the retired CEO dana Or. Cope had joined the GE board in April of twenty eighteen, and five months later was being asked to, you know, basically, be CEO of General Electorate, the company founded by Thomas Edison in eighteen ninety two,
and Cope didn't waste any time. He rolled up his sleeves and went about selling businesses paying down debt before announcing in twenty twenty one that GE would split into three separate companies. Now, listen, folks, it was one thing when GE stopped making light bulbs and some other things. But now here we are. He's he's just sitting at the helm just a couple of years and we're going to split GE into three different companies. So far, it's working.
Since early twenty twenty three, when the first of the three companies was spun off, GE Healthcare Technologies, you know, basically that makes you know, the medical imaging products. GE has gained about one hundred and twenty five percent since that, while GE Healthcare has gained fifty percent. Both have outperformed the S and P, which gained about thirty three percent since GE spun off GE Healthcare Technologies. And then the final move, the next move coming up
April second, GE is splitting itself into two. The parent company will be renamed GE Aerospace. That's the parent company. That is really you know, the meat and potatoes of GE. Remember GE going back to eighteen ninety two, you know, aviation, healthcare, renewable energy, so you know this is the bread and butter of GE, going back to the formation of GE.
So on April second, we're going to have the parent company be renamed GE Aerospace, so you'll have GE Aerospace, you'll have GE Healthcare Technologies, and the new the new spin off company will be GE for Nova for Nova with a V. And that is really the most of the jobs in the Schenectady region. Now Niskiona are the energy company. So buying GE, do you buy it? Now? Barons did a nice article. You hear me
say, I go to Stuart's Every Saturday morning. I pick up the weekend edition of the Wall Street Journal and the Barons Weekly Magazine, two of the best. If you only have time to read, you know a little bit on the weekend, that's what you want to buy. And if you're a GE shareholder and you're wondering about GE, or maybe maybe I'm wetting your whistle and you're thinking, should I buy GE? Go pick up this week's parents,
and you figure out yourself or work with your financial advisor. But buying GE, according to Barons, head of the split, could pay off handsomely. There's a strong case that the two new stocks together will be worth more than the existing shares. Expect to hear more of that when GE's management it makes the case for that in March sixth and seventh during the two day investor day. The truth is, all three of the new companies will be dominant
players in their respective industries. So you take GE that was almost could put almost gone, disappeared, and here it is. It's back to being a power house. And it's kind of exciting. You know, listen, g e the eighties and nineties. You know GE was I forget when Jack Wells took over, I think the early eighties, but all the time that Jack Welch was there, GE was was a power house. It was truly a
powerhouse. By by two thousand, it was worth six hundred billion dollars and you know, GE capital made up a lot of the GE capitol in hindsight wasn't good, just too much emphasis on the financial portion of it. So since since cop came on board just five years ago, he sold off assets to paydown debt, GE's BioPharm of business was offloaded that Dana Her his old company twenty one billion dollars March of twenty twenty. Gees aircraft leasing business sold
off to Aerocap Holdings in twenty twenty one for thirty billion. You get the picture. So, as we sit here today, five years ago, GE had one hundred and twelve billion dollars a debt. It's it's it's repaid over one hundred billion dollars, and as we sit here it has less than twenty one billion dollars a debt and free cash flow. Oh baby, we love the word free. Free cash flow dropped from five point six billion and twenty seventeen to two zero point three billion and twenty nineteen, and as we sit
here today it's up to five point two billion dollars. It's estimated to be six billion dollars in twenty twenty four. You get the picture. There's a lot to think about with GE and you know, with GE shares training at one hundred and fifty five dollars right now. That leads about a fifteen dollars carve out for ge Vanova and that may be undervalue. You know, there's this our goes on to say, G e Branova in itself may be worth about thirty dollars a share. So there you have it, folks, GE.
Who would ever think Stevie B would be sitting here talking about GE. But it was just a great article, GE meaning so much to this day to so many people in the Kampany region area. I just thought it was was was good to talk about it. As I said, you know, if you go back since the turn of the century, the S and P is up two hundred and fifty two hundred and fifty percent, but GE is
down fifty percent. If you look at the at the last five years where where the S and P has has really done some some remarkable things, the GE is is since Larry Cope took over. You know, GE all of a sudden is really looking pretty pretty dawn good year to date. The S and P, you know, we're up about eight percent. GE is up twenty two percent. GE healthcare is up eighteen percent. That's not bad, folks, that's not bad. So I thought a few minutes to dedicate towards
GE was worth it. And you know, listen, if you got a sandbox account you want to play, jump into GE now see if it's worth more after it splits. Who knows it's You know, it shouldn't be your core position. And as I said, it shouldn't make up a lot of your not there's no one stock that should make up more than five to ten percent of your overall investable assets. No more than five to ten percent.
Ten percent should be the cap. Don't get crazy. I don't care how good the company is, because Ge, you know, it's still worth fifty percent. That's of We're peaked out in the year two thousand. That was twenty four years ago. You get the picture. One eight hundred talk w g y one eight hundred eight two five five nine four nine one eight hundred eight two five fifty nine forty nine. Zach, let me take a quick fifteen second break. Don't go anywhere, folks. Thank you folks for letting
me, you know, kind of take a break. After that, Little mama, log on GE. The phone lines are open. I can't thank you enough for tuning in, especially early on a Sunday morning, before you get started in your day, and if you have any questions for me, I would love to talk to you. One eight hundred eight two five five nine four nine one eight hundred eighty two, five fifty nine forty nine any any questions whatsoever, Give me a call, you know. So what are
the world's largest companies right now? You got Mike Soft, Apple, Alphabet, Amazon, NA Video, Meta, Berkshire, Hathaway. Those are some good names, aren't they. If you look at our top ten holdings, number one is well Apple and Microsoft are almost even steven. You have Broadcom, Amazon, n Video, Pepsi, Meta, am, Jen, Consco, Eli, Lilly. Those are our top ten holdings in our portfolios.
So we're in a good company. One of the reasons why our portfolios have hung in there pretty good is because, really Ryan, my son Ryan is kind of leading the investment arm of the firm. It's an important job. Palla La Pietra at Wilhelm who was on the radio yesterday, are part of that team. They do so much research and due diligence, and of course I'm very involved. So we you know, we have a good portfolio. Returns have been outperforming the benchmark. I'm very happy about that. And it's
it's it's it's all good news. Eight hundred eight two five fifty nine forty nine. So what happened this week? Well, you know, there's seven days in a week. That happens every week. But Bitcoin top sixty thousand dollars almost at a record high as they sit here today. Bitcoin's the only action you can get on the weekends unless you're going to bed professional sports and Bitcoin, as they sit here today, over sixty two thousand dollars. Bitcoin
is over sixty two thousand dollars. Who would have ever thought, right? It was just it seems like just a few months ago it was what under twenty thousand dollars and here we are sixty two thousand dollars as they sit here. What else happened this week? Congress returned and passed a short term spending plan. Yahoo. You know, our leaders in Washington finally doing something. Nasdak and As and p man oh Man done doing just fine. New highs.
The Fed's favorite inflation measure rose two point four percent in January over a year ago. For the week, the dow up I'm sorry, let me resay that the dow down point one percent for for for for the week, and you had you had the S and p up point ninety five nanstack up one point seven four. That's how the we That's how the week went. So there there you have it, folks. It's not a bad week. And I know we're going to take a break for the news. Uh,
it's going to be a short break, just just a little bit. One eight hundred eight two five five nine four nine One eight hundred eight two five fifty nine forty nine. You're listening to Let's Talk Money, brought to you by Bouchet, an answer group where we help our clients prioritize their health while we manage their wealth for life. Hanging there with us one eight hund eight two five fifty nine forty nine. What a good rundom mine never do a
word is that, but I help them drinking Hello and welcome back. Thanks for hanging in through the news and thank you for tuning in today. I promise you at the opening of the show, I would tell you why three Dog Night's Joy to the World was was was was the way we wanted to kick off today. Well SMP notch it's fifteenth record high of the year and
sixteenth weekly game in the past eighteen weeks. Now that's reason to celebrate hot streak that was last seen win three Dog Nights Joy to the World top the Billboard Hot one hundred in nineteen seventy one. For the millennials listening, you're gonna have to do a little Google or maybe artificial intelligence to get the facts. For all of those baby boomers listening, you know what I'm talking about, and that's why three Dog Nights Joy to the World was important today,
folks. Thanks for tuning in. I can't thank you enough. Weekend week out, and I would love to take your questions. Zach Harris, my long term producer, and I are sitting here before Joe Gallagher comes on at nine, who's always entertaining. But Zach and I are here and we would love to to kind of get you pointed in the right direction. So if you have any questions, give me a call. One eight hundred eight, two, five, five nine four nine, one eight hundred eight, two,
five fifty nine forty nine. So you know all three major indexes. We're up on Friday, opening March on a high note, and that's that's that's good news for the week. For the week, the leader was of the major indexes was the Russell two thousand, up almost three percent. I bring that up because we need other than the Magnificent seven. We need all those other stocks that trade on on the the you know, on the stock exchanges, to catch up to the Magnificent seven. And that's truly when you'll
see the stock market go through the roof. So when I see the Russell two thousand up, which is really a mid cap slash small cap index, when I see the Russell two thousand up almost three percent, I get a little giddy. Nasdaq up one point seven four. But QQQ, which is really the Nasdaq one hundred. When you buy NASAC, you're buying QQQ up two point oh four percent for the week. Not bad, right, The
SMP up point ninety five. And I don't even know why I throw this out problem because I haven't talked about the Dow and quite sometime I kind of erased it from my from my stats that I follow. But the Dow was actually downpoint And if you wonder how can that be, how can those other indexes be up so much in the Dow down? Well, listen, the Dow only has thirty stocks in it, and they try their best to get a good representation of the market. The Dow is the most popular index,
it's been around for ever. But you know, the S and P is just a better, better benchmark for you to compare your money manager, your stock investments. Use the sm P, don't use the Dow. So you're to date the SMP up almost eight percent. Now if you look at the so the SMP is what we call a large cap indecks Now, S and P also breaks down stocks in the mid cap and small cap. So I told you the Russell two thousand had a great week year to date. That
pushed the Russell two thousand into positive territory. So year to date, the Russell two thousand is up two point four And what makes up the Russell two thousand is really a blend of mid camp and small cap. So the SMP mid cap in decks is up almost five percent. The small cap is still down a half a percent, down a half a percent. True small cap Nasdaq, you got it, that's the winner, up eight point four and QQQ, the Nasdaq one hundred is up almost nine percent. Not a bad
way, folks. Two months into the new year to start out right now. The bad news you got the thirty year mortgage hovering about seven point four percent. This is the national average. Fifteen year average for mortgage is six point seventy three. It's expensive to buy a home, but if you find the right home, because there's a lot of sellers that are willing to take discounts because they're just not the you know, they're not selling their home because
of the high mortgage rates. And some may need to, may want to. So if you find that right home, you know, listen, if you can make it work, if you can go and be kind of creative with a mortgage broker to get maybe a mortgage that that you can refinance with little penalty or no penalty. But hopefully interest rates will come down. Mortgage
rates will come down. I don't think, and I say I don't think because I did this about five years ago where I said we'll never see low mortgage rates again, and low and behold, within eighteen months we saw record low mortgage rates. Mortgage rates were in the two to three percent day range.
Those mortgages were a beautiful thing. And people that have mortgages in the two to three percent range they're just not willing to sell their home to replace it by taking out new money where they have to spend seven percent, give or take a little bit. So if you find that right home and you're ready to move in, you know, don't listen if you can afford the seven percent mortgages, believe it or not. Over time, it's almost in
the sweet spot of where mortgage rates hover for a long time. It's not as high as the twenty percent mortgages of the early eighties, and it's not as low as the two to three percent mortgages of just a handful of years ago. But if you can afford a seven percent mortgage, get it and talk to the mortgage broker, see what your options are. Maybe you get
an arm that readjusts and it goes down. Maybe you get a balloon mortgage and your refinance you're gambling obviously that interest rates will go down, but be creative. Just don't be afraid to take a mortgage out if you find that right home. Some people have, you know, been dreaming about getting a second home, retirement home. As they said, don't let the seven percent mortgages stop you from doing that if you can afford it. So what else
happened, you know, this week in the markets. You know, it's resilient, right, the market is just nothing holding it back. What will the FED do? We don't know what the FED will do at this month's meeting. I don't think they're cutting rates. They're probably going to keep rates. So but this Friday, we had the job report coming out for the month of February. We'll see what happens. They're looking for, you know,
the consensus estimate is about two hundred thousand non farm payroll jobs. Unemployment rate expected to remain unchanged at three point seven percent. We'll see what happens. I you know, I don't want to bash the Fed, but we have proven that maybe this is the new norm, or at least this is the new norm for the moment at the moment, and that means that the
economy is pretty resilient. It's hung in there. The inflation rate came from nine percent down to three percent, and it's probably really in the two percent range two percent points something. We'll see what the reading is for February when we get that. In the middle of March, the CPI number. But regardless, we did this all without unemployment going up. To the five six
percent range. There was a time when Jay Powell, and he's coming out on Wednesday, believe it or not, testifies before the House Financial Services Committee. And you know, listen, stay tuned. If you want to listen to a lot of mumbo jumbo, you're not going to really. All he's going to tell you is what happened in the past, because that's what the
Fed does. They look at the past, they look at history, they look at you know, in order to bring down inflation, history shows you have to really hit the economy hard, drive it into a deep recession, millions and millions and millions of people have to lose their job. Guess what, Guess what, we just we just proved that that doesn't have to happen. And this is why I say inflation is a moving target and you can't
get all caught up in the headlines. Inflation is a moving target. And the FED, you know, they did a good job getting inflation down without having to drive us deep into a recession where millions and millions and millions of people had to lose their job. I commend them for that. They they you know, they may have talked tough, but it's like the school yard bully talking tough until that little, you know, skinny guy comes up and gets in his face and then the bully backs down. And if that had
to do that, I understand why they had to do that. But inflation is a moving target. And this is why I just watch. I don't think interest rates will come down when they meet the end of this month, and I think that that the next move will be down after they get done pausing. The next move will be down sometime this year, I'm guessing because the economy may get a little stale, And the reason why they lower interest rates is to reinvigorate the economy, get the economy moving again, pump it
up a little bit, and we'll see what that happens. But remember inflation is a moving target. So the ten year US Treasury slipped a little bit Friday after weaker than expected reports on US manufacturing activity, consumer sentiment, and construction spending. So you know, we had some reports, but the ten year Treasury settled at four point one eight, a whole lot less than the five percent that we touched not too long ago, but a whole lot more
than the three point five percent where it was not too long ago. At that, I tell you and folks, this is an area that I worry about, the commercial real estate, office building area. New York Community Bank
Corp. Was back in the spotlight. And if you're a shareholder, you did not want to own this company down twenty six percent on Friday alone, a quarter of its value loss could put just like that, after New York Community Bank Corps Said that, you know, unearthed material weaknesses in loan controls, it replaced its CEO, and it took a two point four billion dollar right off, and it really it hurt the obviously hurt the regional index.
You know, financials are just not not not doing it. Financials are taking it on the chin. You know, we had three things that went could put last spring that kind of sense shock waves through the system. And here you have, you know, New York Community Bank down twenty six percent and one day after Thursday. You know, basically it just kind of I don't know if they took their their eye off the ball. I don't know what
they did. But hours before the disclosure on Thursday night was a deal to shore up a smaller regional bank in Philadelphia that that that collapsed after it it's its own internal control issues kind of you know, came to light. That was republic First Bank. You know. Listen, folks, the Regional Banking index fell one point three percent on Friday. Banking is not the place to be. And I worry because there's just so much vacancy in these office buildings.
So many companies are letting their workers work remotely or even a hybrid come in the office will will you know, half the workforce comes into the office half the week and works remotely and flip flops, and they don't need all
that office space. So if you have any of those office space reads real estate Investment Trust in your portfolio, you may want to take a look and just make sure you still want to own those because it's you know, I think as we go through the next couple of years, and remember a lot of these companies were locked into long term leases. So even though the global pandemic is behind us, companies realize that they can work differently and why should
they be paying high rents, especially in places like New York City. How many companies have moved right out of New York City and they continue to move not only out of New York City, but out of New York State in general, because it's just too expensive. Why not take your company, move it down to Miami, Saint Petersburg, a warmer climate, and let your
workers. You know, I know one investment firm, and I forget how many workers he had, but he had, you know, a bunch of workers, close to one hundred workers, and just about every one of them moved with them down to Saint Petersburg. He said, listen, we're moving out of the city. I'll pay for you to come down. I'll pay you moving and relocation costs. Come on down. And they did. And it was a brilliant move in hindsight because it was before the global pandemic.
But since the global pandemic, more and more of these companies are finding they just can't afford the stay in business. Look at we had, you know, Doug Goudie and I talked about Macy's on Wednesday morning. If you don't tune into Doug Goudie, you really should. He and his longtime producer Rachel
do a great job. And Doug is pretty knowledgeable and he's you know, he and I talked every Wednesday morning at ten minutes to seven, and it's pretty good conversation this Wednesday, we talked about Macy's closing one hundred and fifty stores, and that's a big hit Macy's got. There was a day when you walked into Macy's and Macy's was like, you know, you you thought you were in the Vatican. For God's sake, said no, pun intended.
Macy's was the store. And they're just losing their luster and closing, focusing more on the high end part of what they're selling in Bloomberg and so forth. And when you think San Francisco is almost like a ghost town, Nordstrom has closed. Macy's closed their flagship store in downtown San Francisco. San Francisco used to be one of my favorite big cities. That's how I used to describe it. Folks. You couldn't pay me to go to San Francisco right now. You couldn't give me a free you know. No, I
have no desire to go to San Francisco, not whatsoever. But Macy's, you know, just one of their stores that they're closing was that store, and that was their flagship store. San Francisco is where listen, San Francisco is a ghost town. I hate to repeat myself. But it's a ghost town. So a lot of these brick and mortar operations they're just they're just
not the same. But office space, office space, you know, you look at CDPHP, they had that hugemongous office building, you know, over off of by ninety and now they're in much smaller space off of eighty seven in Latham. And why because they didn't need all that space. And what do these developers do that owned these office buildings? How do they fill the vacancies? And you know, going back to San Francisco, I know of some developers they basically just you know, they went down to the bank and
basically handed the keys in, just walking the way. They can't afford it, just walking away. So the next couple of years commercial real estate is going to be interesting. I don't care how high the yield is on some
of these roads. Be careful, do not buy them. So do not add them to your portfolio unless you really are looking to you know, almost like you know, take a shot on the Roulette wheel and in Las Vegas, where you're just gonna take a shot and you know you may lose, you know, put all your money on red or black or your favorite number, and you may lose, you may win a lot. And that's exactly where we're at with commercial real estate right now. So be careful, folks,
Be careful. One eight hundred eight two five five nine four nine one eight hundred eighty two five fifty ninety nine. Give me a call any questions. I would love to talk to you. So, you know, a good article in the Wall Street Journal about stocks are they in a bubble? And there's a case that's being made, But I don't buy it. As you know, I'm optimistic, and I'm optimistic most of the time. I even you know, I got nineteen amazing, very smart professionals that I'm surrounded
by, and I coach them, I mentored them. The one thing that I tell them is the stock market is up more than it's down. Never run for the hills, don't panic, don't ever have any knee jerk reactions. If you hear a client talking like they feel the end of the world is here, it's not. And the only time you lose with long term investments is when you sell. And when you sell and you get out and you miss the rally, you really lost big time. So I'm not in
the camp that there's a bubble, you know. I know Man's that just hit a new time high, up fifty four percent since the start of last January. And you got you know, SMP up thirty two percent since the start of last January. And those are great returns. The video up four hundred and forty one percent in the same time period. Man oh Man, oh Man. In one single day last month, it rose in value by two hundred and seventy six billion. That's about the value of Chevron, the
twenty sixth largest company in the S and P five hundred index. Think about that in the video, one day gained that much in market value and it equaled the twenty sixth largest company out of five hundred. That's crazy, right, But are we are we in a bubble? You know? You look at the weekly survey by the American Association of Individual Investors shows forty seven percent declare themselves bullish. And that's low compared with the seventy five percent in two
thousand. For those of you that weren't invested. We went through a little market correction in the first few years of the new millennium, and so think about that today, forty seven percent of investors are bullish back then, seventy five percent. And what you want, what you need to see to say a market is frothy in a bubble is just craziness, craziness, craziness,
craziness, and we just don't have that craziness right now. You know, Yes, yes, the market valuation is a little high than normal, but that's all right that you know. It's not outrageously high. It's just a little bit high. So I'm okay with that. Believer it or not, I'm really okay with the market being just a little bit high. You know, you go back to the turn of the century, it was a whole lot higher. I mean things they were making up companies back then. That's
not happening now. The NASDAC today is different than the Nasdaq twenty four years ago. So I'm just not believer that the market's in a bubble and the market's going to come to a crashing halt. If anything, just the opposite. I think inflation rates are going to hang in there. I think the Fed will continue to pause. We'll see what the jobs report is Friday. We'll see what the CPI report is for the month of February. When it comes out. In a couple weeks and we'll see what the Fed does when
they meet at the end of March. But I'm just not in the camp that the market's coming to a halting screech just because it's at record highs. You know, listen, I love it. An investors say, yeah, I just don't want to invest the market's at an all time high. I said, all right, well wait, you know viause, it will continue to make all time highs. That's what the market does. It continues to make all time high So when do you get in there's a there's a great
report about dollar cost averaging and lump sum. And I go over this often with my team because it's easy to tell people with money to hey, listen, let's moving slowly less risk. Well, folks, I can give you every statistic under the sun to show that that doesn't work. It only works very, very few times. Where dollar cost averaging, which means basically you're putting a little bit of money in over time visa. The stock market's been in a bull market for fifteen years. Folks. We're coming up to the
end of the show you're listening to. Let's Talk Money, Brought to you by Bouchet and Andrew, where we help our clients prioritize their health while we manage their wealth for life. Go to our website Bouchet dot com, that's biz and boy O U C H E Y dot com and look for our state of the economy. We did it not too long ago. It's the best way of seeing our outlook. Come back next week Saturday at ten, Sunday at eight. Have a great day, enjoy this nice weather.