I love this song, Zach. I hope you do as well. Folks, thank you for tuning in today, and I am with you. I am Stevie b. And I'm your host today and not one of my capable colleagues. And believe me, I have twenty twenty capable colleagues. Two of them just became cfps this week. I'm happy to say that Scott Strohecker passed his CFP last Friday and he will be formerly a CFP Certified Financial Planner.
And Samantha mace Or I'm sorry, Samantha has been a CFP. Oh my god, Katie Buck one of our young associate if she's passed her CFP on Monday, Man oh Man, talk about being committed to your profession. I am so blessed to be surrounded by all all of my capable colleagues. But as I said, I'm Stephen Bouchet, I'm your host today and I would love to talk to you. Believe me. My grandson who just turned nine a couple of days ago, George, he used to say, hot,
hot, it's hot. That's what the stock market was this week. Hot, it was hot. But if you have any questions, any questions, whatsoever, Folks, give me a call one eight hundred talk WGY one eight hundred eight two five five nine four nine. Any questions at all pertaining to your financial future investments that maybe you're thinking about buying. Do you have the right mix of stocks to bonds, whatever it is? One eight hundred eight two five fifty nine forty nine. As I said, it was a pretty
good week. You know, it didn't start out that way. The Magnificent seven. Stocks on Monday got trounced ahead of a big event that NA Video was holding. That evening, bond yields climbed, and then you know, on Tuesday and Wednesday, the Federal Reserve met. They kept interest rates unchanged. On Wednesday they continued their forecast three quarter point cuts before the end of twenty twenty four. Stocks and bonds took off on that news. How can
they not? This is great news. And I am optimistic on the stock market, very optimistic on the on the stock market. You know, then you had you know, sales of previously owned homes jumped about nine point five percent in February, the fastest pace in the year. Mortgage rates fell a little bit, they're still high, fell a little bit. You know, stocks on Thursday, all all the major indexes record highs, record highs, and then you know you had some retailers on on Friday. Lululemon, Athletica,
Nike all fell Friday basically disappointing earnings. FedEx, which is really a bell weather for for maybe you know how we look at our economy jump on better results. So markets were down just to smidtioned on Friday. But man oh Man, for the week, as I said, it was a red hot week. You had the S and P up almost two point three percent, Nasdaq up, well, the Nasdaq Composite two point eighty five percent,
Nasdaq one hundred, that's the QQQ. Folks, when you buy QQQ, you're buying the Nasdaq one hundred up three percent two point ninety eight I guess three percent. RUSS two thousand was even up one point six. We like that because when the smaller mid caps take part in this rally, you're going to see this rally continuing. So year to date, you know, the S and P is up almost ten percent, nas that composite nine point four, QQQ nine percent. Apple has a lot to say about that. Apples
down about seven percent year to date Apples. An Apple a day keeps the doctor away, they say. But boy, you know, listening to the news headlines before I came on air, you know they think Apple's doing a bad thing. You know, they have the most loyal customer base there is in the world, one of the greatest companies in the world, a great product line, good management, more cash than most most countries. But our government wants to stick their nose in big business. They feel that Apple has
them an belly. Oh isn't that a shame? Apple did a good job and now they have a monopoly and Apple Apple took a hit on Thursday, four percent alone because of this impending lawsuit from the government, and it could take three to five years. I actually don't hold me to this. I think Apple. If you wanted to get into Apple, I think Apple right now may be a good time to get into it. It's down over the last year. It hasn't performed anywhere near what the market has performed or what
you know, the rest of the Magnificent seven has performed. And if you always wanted to own Apple, I'm telling you I'm thinking about buying a little bit more Apple in my in my sandbox. Account. That's the account that I play with. I'm thinking about adding some Apple, some Google, some Tesla. They're all down. Tesla I don't own, never cared to. My wife owns it. She actually did well for a long time. But the problem with doing so well with something is you need to know when to
sell. She didn't sell, she says, well, thank god I bought Regeneron as well, and that that's kind of helping me. My wife likes to play with stocks in her little sandbox account as well. So the markets are doing pretty good, you know, as I said, year to date, you know, being up almost ten percent, and if you're wondering, the rest of the world is up about four and a half percent. Take into consideration, every every stock market around the world except the USA, our
great country. Every stock market around the world is up about four point five percent year to date. So there you have it, folks. Mortgage rates are still a little bit higher, and you know, the Fed funds rate, I think I heard something yesterday. You know, we're right now at about five percent on the Fed funds rate, and believe it or not, over the last forty years, that's about the average. So we're kind of
right where we are. Problem is, after the Great Recession fifteen years ago, when it ended on March nine, two thousand and nine, we got used to low interest rates. The you know, mortgage rates were hacked two three percent. Now they're you know, in the seven percent range. But people weren't getting paid anything either, conservative investors especially, there was absolutely no yield with interest rates near zero, they weren't getting anything. And now and
money market funds they're getting about five percent. So that's the good and the bad and the ugly with with interest rates. But mortgage rates are hovering around there. But people, you know, listen, I remember in the early eighties when mortgage rates were in the high teens, low twenties. If you need a house, you're going to buy a house. Maybe you're not going to afford the house that you always want it, and you need to settle in order to have a mortgage payment that you can you can live with.
But if you're if you're optimistic, you know, you may want to buy that house, have the higher mortgage rate, get a certain type mortgage that you can refinance if you think mortgage rates will go down, and I do think that mortgage rates will go down, as I said three quarter point cuts this year. That's that's not from my mouth, that's from Fed Reserve Chair Jerome Pile's mouth. Three quarter point rate cuts before the end of the year.
That's huge news that will affect the stock market. The stock market likes it when when when interest rates are are steady, eddy or coming down. They don't like it when interest rates are going up. So this is this is good news for stock investors. I truly, truly think that. And you know, I say, don't don't get greedy with regards to your your bonds. You know, I know that short term bonds you can get a
higher interest rate than than long term bonds. But folks, you have to remember if interest rates come down, and if you buy a six month you know, T bill yielding five point three percent, sure that sounds good. Why would you want to lock your money into a ten year right now today
yielding about four point two when you can get five point three. The reason why you may want to ladder a portfolio going out ten years is because when that six month T bill comes due in six months, where will interest rates be. If J. Powell is correct and the Fed does cut interest rates three times before the end of the year. I don't think you're going to be buying a new six month at five point three, and the ten year will probably be lower than four point two. So smart money, says Ladder
a bond portfolio, whether you're buying CDs or bonds. I actually like US treasuries at this point in time. They're free of state in local taxes. Why wouldn't you buy some US treasuries. It's really so even that four point two you're not paying state tax. If you live in New York City, you're not paying local taxes either. Why not buy a four point two. It's it's not bad and Ladder ladder a good portfolio. Put some short term less than one year, you know, two year, three or five year,
seven year, put them all in your portfolio. When they mature, you just buy another new longer term bond. And that's the smart way of taking advantage of yields. Don't think that yields are going to stay up. As I said, if the FED is correct, and if the FED does start cutting interest rates, you're going to see yields come down. I'm not going I'm going to take a fifteen second break, folks. The phone lines
are open I would love to talk to you. If you have any questions, give me a call one eight hundred eight two five five nine four nine one eight hundred eighty two five fifty ninety nine. Here I am Stephen Bouchet, your hosts today and the phone lines are open eighty five five to nine four nine. So what was all the good news? What? What? Why were the markets red hot? One of the big reasons was the Fed.
You know, they met on Tuesday and Wednesday. Jerome Powell came out, had the post Fed meeting, and you know, the stock markets all rose to new highs on Wednesday and Thursday. You know, basically, you know, Fed Fed Reserve chair Jerome Powell set his outlook for inflation to continue declining hadn't changed substantially in recent weeks. That's good news. The projections released Wednesday were little changed from December and showed most of his colleagues expect two or
three cuts this year, so most of them are on board. The Central Bank has held steady at benchmark federal rates. The fund rate is in the range of five point two to five point five, which is a twenty three year high. So I think this is all good news for the market. You know, believe me, folks, you know the FED, when they start cutting, you're going to see this market, I think just rally. I think this market will really be happy. Only two of the nineteen officials
projected no cuts this year. So for the most part, the majority of the of the FED, you know members that make up the FED open market con maybe the majority of them basically penciled in a modestly slower pace of rate reductions. Their benchmark they think will be at around four percent by the end of twenty twenty five and slightly above three percent after that. That means they
are committed to cutting interest rates. You know, the thirty year fixed rate mortgage last week stood out about six point seven percent, down from an October high of seven point eight So when those interest rates come down, I think this is going to be good news for the market. It's gonna be good news for the consumers, not so much for savers, which is why you want to take advantage of interest rates and maybe start laddering those CDs or bonds
in your portfolio. One eight hundred eight two five, five, nine four nine. Let's go to the phone lines where we have Dave in the car Hello Dave, Good morning Steve. Thanks as usual for your service. Well, thank you for calling in. I hope you enjoy the show. I hope I'm able to help you out here or there all the time. I have a general question. Yeah, I listened to a lot of you guy professionals. They take me if I'm wrong. In your overall portfolio around ten
percent cash? Now? Is that hard cash? Was that also like SAT bond and security? Yeah, so there are a lot of nervous nellies out there, Dave. There's a lot of people that say they manage money, but they get scared. They're they're human, and a lot of them are new, especially if you're buying investments from your favorite insurance salesperson or somebody selling mutual funds. You know, they just don't know what to do, and
maybe they're they're holding cash. We are fully invested. What that means is if you're a growth investor with us, we have about eighty percent investing in stocks, twenty percent investing in bonds alternatives, and we have we don't have a cushion of cash. We do like bonds. I've been you know, we were out of bonds for almost a year back in twenty twenty two, twenty twenty three, we started buying back in and you know it was a brilliant move on our part to not be in bonds, and we like bonds.
Right now, bonds really have done well so cash. There was a time when, you know, listen, when we feel that the future of the stock market may be rocky, you will see us raise cash. But right now, I've been optimistic for quite some time. If you've been listening to the show date, you know that for the last couple of years, I've been optimistic on this stock market, and as I sit here today, I am still very optimistic on the stock market. So we want our clients'
portfolios fully invested now we don't. You know, listen, sometimes we use cash, but not right now. Right now we're fully invested in our stocks, bonds, and alternative assets. We may keep one percent cash, but that's nothing to speak of. Okay, thank you for the help. I really appreciate. All right, Dave, keep your eyes on the road, Thank you for calling in, and thank you for tuning it. Be well, stay healthy. One eight hundred eighty five, fifty nine forty nine.
Those are the phone numbers today. If you have any questions, give me a call. I would love to talk to you. So last week, you know, you know, when you look at the markets, Bank of Japan finally finally got out of negative interest rates, raising rates to zero. They've been listen, Bank of Japan. Their stock market just hit a new all time high. I'm going back thirty four to thirty five years. The last time the Bank of Japan had a new all time high was nineteen eighty
nine. The Federal Reserve, as I said, the big news for US and in this great country of bours, left rates unchanged, but it said it expects to make three quarter point cuts this year. And that you know that that sent stocks flying, the Dow up two percent, SMP up two point three percent, NaSTA Composite up almost three percent. The House passed the spending bill, so there's no shutdown. You know, oh whoop? We do right these these you know, I get so aggravated with our politicians in
Washington that everything has to be so dramatized. Two five four nine. Let's go back to the phone lines. We have Chuck and Glenmont. Hello, Chuck, good morning, good morning, good morning to you. The question I have I retired from a major local company with twenty years service. I had a few jobs in between. I went to work for another major employer, and they pensioned me out each time. When I reported the human resources.
One of the options to take that pension was to take a reduced pension for In other words, on my pathing, my wife could have a portion of my attention. Now in the case of I'm seventy four, if she was to predecease me, she's nine and a half years younger than me. How would that work. Yeah, So each pensium plan has different options, and it's smart, Chuck, that you do it in the right way.
I recommend everybody do this in the right way, and you know, you really hopefully most companies have to get their spouses to sign off on it, because a lot of times what people do, Chuck, is they take the full payout thinking they're going to live forever. They forget that if they die, their spouse gets nothing. I know of a case a very smart, intelligent individual who did that took one hundred percent payout and if he died,
his spouse gets nothing. And doesn't he die within a year of retiring, and his spouse had to live another twenty five thirty years basically living on social Security. So it's it's it's prudent to take that reduced payout and protect your spouse, especially if this is really what you're planning on living on in retirement. Sometimes there's a pop up if your spouse predeceases you, where the pension will will pop up, because obviously that's not in the cards anymore. There's
different options. So looking well, I guess you already took the options. So you'll have to call and see if you took the pop up or not. But it was smart, Chuck that you protected your spouse and you did what you did. Okay, all right, I consider getting an attorney to do the work for me. But that's I was writing here to glenm Ott and I heard you and I decided that I would question you. But yes, I'm bringing that's mort and the right thing to do. Yeah, just
just just cool called the business office. Yeah yeah, all right, Well, thank you and thank you for you for your show, and I'll be listening regularly. Thank you, Chuck, We appreciate it. Thank you for tuning in. And if you do want to talk to a lawyer at eleven, we got Lou Piro and his team are on and they're pretty good free advice. Listen, when you call into the radio, there's there's there's no you know, clock ticking. You're not being charged by the minute like a
lot of law firms do. So take advantage of Low's show at eleven o'clock. But yeah, Chuck, you should be able to call the business office, call your pension plan and see what happens you. I don't think you need an attorney. They'll tell you exactly what option you chosen. Folks, I can't stress enough, you know, don't get greedy. You know if, for instance, you know your pension is fifty thousand, but if you die, you know your your spouse, it's nothing. So if the reduce
pay out, let's say it's forty thousand. I'm making these numbers up. Well, it's worth it to protect your spouse because if you die prematurely, if you predecease your spouse, what's your spouse going to live on? Don't get greedy, don't think that you're going to outlive your spouse. Don't think you're going to live forever. The only two things that are guaranteed in this life, in this great country of ours, especially are death and taxes.
We are going to die. We just don't know when we're going to die. So you know, be careful, you know, do the right thing. If you're if you've got options in your pension plan, do the right thing. Always, do the right thing, and protect your spouse. Four nine. So before Dave and Chuck called in, you know, was talking about you know, only two of nineteen officials on the Fed Reserve Open Market Committee project no cuts this year seventeen project two to three cuts for the remainder
of the year. Mortgage rates are down a smidgeon. The FED began raising rates from near zero as they said two years ago, and lifted them to you know, basically, uh, you know, the fastest pace in forty years to combat inflation. That's why the Fed raises interest rates that they kind of tapped their foot on the brakes. They want to slow down the price of goods and services from taking off from being you know where you can't afford
it. Melk Bread, I don't care what it is. Inflation affects everything, and inflation is real. Over time inflation averages around three three point four percent, and we had nine point one percent two years ago and now we're down to about three percent, which is really over time. History has shown three percent is real. The Fed's target rate is two percent. The Fed, you know, basically, they they want to see inflation down to two
percent. Their preferred gauge of inflation excluding food and energy, you know a year ago was four point eight and now it's about two point eight, so it's coming down. They'd like to see it get the two They feel. There was a little bump in the road in January and February. That's why we had a couple of reports that showed inflation was still hanging around. And that's okay, that's that's okay. At least they admit to it. There
was a time when the Fed wouldn't admit to anything. I had a conversation with you, Marty in my office this week. He and Polla are both you know what I call my in house economists. I said, Marty, I said, the Fed got this completely wrong. They admitted to getting it wrong. And you know, listen, sure they did a good job. They huged interest rates eleven times. They brought inflation from nine point one to three percent. But inflation is a moving target and I think, and I've
been saying this folks for months over the last year. Go back and you can. You can listen to our shows, our podcast. Just go wherever you listen to your your favorite podcast. You can listen to past shows. So I've been saying that, listen. You know, this is a new norm. And I don't think that the government needed to have unemployment go up to five six percent, millions of people being laid off. Hey, you're listening to Let's Talk Money brought to you Vay Bouchef and Andrew, where we
help our clients prioritize their health while we manage their wealth for life. We're going to take a quick break for the news. One eight five, five nine four nine. Give me a call. Hey, folks, I've been talking to myself the last few seconds. I forgot I had my headphones on mute. I apologize about that. Thank you for tuning in through the news, and thank you for tuning in today. I can't thank you enough. Phone lines are open one eight hundred talk w g Y one eight hundred eight
two five, five, nine four nine. You know i'd be you know, I'm I'm I was a Princess di fan and I'm absolutely a fan of of you know, King Charles and Queen Elizabeth and you know William and Kate and yesterday's news with you know, Kate Middleton, the Princess of Wales, was just just a shocker. I can't believe it. I give her a lot of credit for coming out and being as strong as she was. You know, I'm on Twitter, you can, you can follow me if you
want. About a week ago, I actually put something on Twitter that said, you know, what's wrong with the world, what's wrong with people? Why can't they Why can't they respect one's privacy? They were going after Kate Middleton and trying to figure out what's going on, and the conspiracy theories. Leave them alone. For God's sakes. They deserve privacy. Let them, Let them deal with their you know, she she went in for an operation and you know, obviously it turned out to be a whole lot more.
But you know, I put it out there. I listen. I don't bite my tongue too often. I call it like it is. I think that's on my clients, like you know me and my style, because they you know, I'll never let them shoot themselves in the foot without me really giving them how I feel in the pros and cons. But Kate Middleton, I actually went public saying leave leave them alone. So yes, it was just sad, just a sad day to hear her come out and admit that
she has cancer, and who knows how bad or not. Listen, folks, cancer is one of those illnesses. Just about everybody listening, I'm pretty sure knows of somebody in their small circle of family or friends that has cancer. And cancer doesn't discriminate. It doesn't discriminate one iota cancer. Listen, Listen, whether you wear a nice suit to work or jeans and a T shirt, whether you drive a fancy car or you know, take the bus. It doesn't matter who you choose to love, the color of your skin,
the faith that you practice. Cancer doesn't discriminate. Cancer. Cancer goes after anybody and everybody. And once you join that cancer club, the big C club. And I got a friend right now that's that's going through it. My heart goes out to her. I try my best to stay in touch with her, and you know, she was you know, misdiagnosed, and it's just a terrible thing. But cancer, once you belong to that cancer club, you're you're part of the cancer club. And cancer doesn't go
away. It's always in the back of your mind. You know, maybe you're in remission, but it may come back. Believe me, folks, believe me. It's it was sad news yesterday to watch Kate Middleton. You know, talk to the world. You know, this is you know, listen, there's this is a family that I truly I respect for a lot of reasons, and I just I hope, I hope she's able to come through this, get through this. She and her family are get healthy and
stay healthy. That's what I hope. And you know, I try to tell my kids, if something for the money we pay for health care in this country, if something doesn't feel right or seem right, why fool around? Why why want to You know, sometimes you got some people that they just want to be macho or they don't want to be bothered folks. For the money that we spend in health insurance, you know, get it checked out. You just never know. That's my advice for everybody today. Don't
be macho, don't put it off anyway. Kate Middleton, my thoughts and prayers go out to you, and I hope that that you get healthy and everybody who's affected by cancer, my heart goes out too. And it's it's one of the clauses that I that I support in a big way. Anyway, let's talk about some good things. How about this stock market, this red hot week in the stock market. One eight hundred eighty two five five nine four nine. If you have any questions, give me a call.
One eight eighty two five fifty nine forty nine. You know, Bloomberg reported Apple talking to Google to use its Gemini AI for iPhones. Who knows where it's going. Artificial intelligence is here to stay, folks. It's not going anywhere. It's here to stay. And it's pretty exciting. You know. I I use it. I'm dabbling in it, and before you know, everybody will be using it. I said, if you google something, you
get maybe ten links to ten websites. If you look at artificial intelligence, you're going to get really you know, you get to the right to the heart of it. So you got, you know, Apple talking to Google. We'll see what happens there. Later in the week, the Justice Department fifteen states hit Apple with an antitrust charge over its smartphones. Basically, Apple, you know, they feel has monopoly and making forcing people to spend more
money on a phone. Listen, people don't have to spend more money on an Apple phone. They can go get something that may be not as nice or not as good as an Apple phone. I just don't get. I don't get, you know, government sticking their head big. You know, Listen, let companies do what they do, give us good products. We can decide whether we want an Apple phone or not. If you want to go and look for a flipphone, heck, if you want to use a
BlackBerry, go, you know, look for a BlackBerry. There's a lot of people that are using them as paperweights. See if you can get that going, why, you know, we'll see what happens. This lawsuit could take three to five years. In the video, unveiled its black Wealth AI processor two hundred and eight billion transistors, two hundred and eight billion. It's going to cost about forty thousand dollars. The video is one of the leaders
in artificial intelligence. Once again, folks, artificial intelligence is here to stay. Hey, how about this big news. I'm an ice cream guy. Unilever spinning off it's ice cream business, including Ben and Jerry's maybe maybe Ben and Jerry's political stance got to Unilever and they just didn't want to be bothered
anymore. Or who knows. Intel eight point five billion dollars in federal funding and up to eleven billion dollars in loans to make chips in the US, well, I support that, you know, the more business we can bring to this great country of ours, why not? Why not? Reddit ipo came out on Thursday thirty four dollars a share, closed Friday at about forty six dollars a share, So Reddit had a red hot IPO. For those of you that that that got into it, read it did pretty good.
Eight hundred eight two five five nine four eight two five fifty nine forty nine. Let's go back to the phone lines we have Rick in half Moon. Hello, Rick, nice Steves, good morning, Good morning to you. You just give the advantage of the ef T stocks versus EFT funds, I guess, versus just regular mutual funds. What is it a benefit? Oh? Yeah, absolutely, I'd love to talk about this, Rick. I'm glad you brought it up. You know, listen, I've been a fiduciary
since nineteen ninety three. I used to sell mutual funds and annuities. I love what I do, but I did not like the way I was compensated. I never wanted a client to think I had a conflict of interest, that I was pushing an annuity to make more money than a mutual fund, or pushing a B share mutual fund, trying to pull the wool over, you know, investors' eyes kind of saying it's a no load fund. So with all of that being said, i'll tell you the big difference between annuities,
mutual funds, and exchange traded funds. First of all, annuities are an insurance product. They may have have you know, mutual funds in them. And mutual funds come in all all forms. You know, mutual funds. You can buy stock mutual funds, bond mutual funds, real estate mutual funds, commodity mutual funds. And when they're inside and aw and a no, and oh man, I'm tongue tied. When they're inside UH an annuity, then what happens is you have an insurance wrapper around it. So what
you have is UH expenses, higher expenses than you need to have. So let's take annuities right off the the the equation. They should not be in your portfolio unless it's a real, real specific need that you need. An annuity, they're an expensive way to invest. So then now you have mutual funds. So annuities the average fees could be three percent, give or take. Mutual funds. According to the morning Star, the average fee is around
one to one point one percent. So you're buying a pooled investment or sometimes a passive investment. You have the the mutual fund manager managing stocks. Bonds come on of these real estate and the average internal management fee is about one point one percent. Then you have exchange traded funds. The big difference is mutual funds you can only buy and sell once a day at the end of the day. They call it nav net. Asset value. Exchange traded funds
you can trade all day long on the stock exchange. You can buy it at nine thirty one in the morning, you can sell it at ten thirty in the morning. And they're usually more transparent than mutual funds. Mutual fund managers really, you know. They they report once a quarter what they're holdings are and so forth. With a lot of ETFs, most ETFs are passively managed like you're buying an S and P five hundred index look alike, the
Nasdaq one hundred composite the Russell two thousand. But there are actively managed ETFs. Now. The big difference is, so you have you have a new noo these three percent fees mutual funds one percent fees. Our core holding is point zero three percent because we manage one point three billion dollars. Most of it Rick is in ETFs exchange straded funds. The only thing we have outside of ETFs is two individual stocks, Apple and Amazon. So our core holding
starts out at point zero three percent. That's a whole lot less than the average mutual fund and the average annuity fee. And for the most part, we build our portfolios using ETFs. I like them. They're transparent, they're tax efficient, and be careful when you're buying actively managed mutual funds or ETFs because statistics show over time sixty five to eighty five percent of the time active managed funds. This is why you know the stockbrokers who think they can buy
and sell stocks stock fund managers, they can't. I don't perform their respective benchmark. So those are the pros and cons of the newdies mutual funds and ETFs. We love ETFs. There's a lot of good mutual funds out there, but we love ETFs. One eight, eight, two, five, five, nine, four nine. Let's go back to the pome lines. We have Tom and Gilderlind. Hello Tom, Good morning Steve. How are you today? Oh? I'm doing great. But every day I get out
of bed, Tom, I feel like I'm doing great. There you go. I feel the same way my friends. But I do have a question for this morning. Chipotele just the other day announced a wopping fifty to one stock split, and I was wondering, did you did you happen to hear any news on when that may occur? I have no. I I it's one of the stocks that I wish we own because man, oh man, you know Chipotle. You know, just year to date, chipotely is is
up to twenty six percent. You know, if I look over the last five years, three and twenty nine percent, chipote is up compared to the S and P, which is up about eighty six percent over the five year period. I don't know when that will happen. The reason why they're they're splitting is their share price just got too high. So a lot of times companies will will split to basically bring the share price down, make it more
affordable. You know, it's it just makes sense that they split. It doesn't mean that you're losing value if you do own Chipotely, I don't know when that will happen, and it shouldn't make a difference, you know, buying in before a stock split usually doesn't make a difference. Hopefully that helps you. Tom, It's been a good, good stock, you know,
got it. I wish we owned it. I had an opportunity. I was in covid it that actually dropped around seven hundred dollars a share, and I thought, jeez, I should probably pick them up at that point. It was just a few years back, and now I don't know, twenty eight, twenty eight hundred dollars in that range. So yeah, but fifty they made them one. Maybe me when it splits, yeah, fifty to one. Hey, listen, you'll be able to buy a whole lot more
shares. The first stock split in Chipotle's thirty year history. You know, man, oh man, I mean god, Chipotle. So you know, basically it's trading almost what three thousand dollars a share. So it's gonna come down. It'll be more portable. Hey, good, good question, Tom. Yeah, it'll be about fifty eight dollars a share. Good, good question, Thank you. One eight, eight, two, five, five, nine four nine. Let's go back to the phone lines. We have Steve on hold. I love that name, Steve. How are you all
right? Steven? Now? Listen there of this, I think it threw me a curveball here. I've got about I've just basically retired. I had to him cash on HND tour for my business to you know, just just a safety net to do whatever I wanted to do as far as business wise, coach. And I got about eighty grand sitting around and I've had it there for about a year, and I wanted to you know, I'm seventy eight years old now, so you know, I just wanted to make sure
I keep it kind of safe. And so I've been thinking about laddering, you know, like CDs or FEDS. And but when I picture that time frame or the technique I thought it would be. I want maturities coming in, say every other month, where I could be a little quicker if any anything's changing. But you turned around and I believe this is what you did.
This is what rocked me a little bit is that you said six months, one year, two year, five year, and I kind of said, gee, that potentially that would put me in a what would you say, you know, not admantageous position if things change, and things changed rather rapidly like they did I don't know, say about three four years ago. So so I want you to explain. I want you to explain how you
perceived a laddering situation for a sake either CDs or treatment. Yeah, it's a great question, and I can assure you there's people listening that will be very happy you asked this question. So what you want to do? Listen, It's not like the old days where you would open up a CD and get a toaster, you know what I'm saying. So, you know, unless you're bored to tear Steve, you know, to have you know,
they'd be buying these bonds every couple of months. You know, basically you have a short term horizon with these bonds if you're looking for them to you know, mature every couple of months. So you know, right now the six month is five point three percent. You can get a three month for almost five point four percent, So I would buy maybe a three month of six month of one year, two year, three year, five year.
Maybe you don't want to go out ten year, but man, when you're eighty eight, I want you calling in and saying, hey, Steve, that ten year just matured. Remember when you had me ladder that you know portfolio? So the ten years, ye, let me in a rupt you here, I'm seventy eight. You're telling me you want me to call you in ten years to say, yay, yeah, all right, Steve, I got you that one pow. Absolutely I want you to I want you to remind me that I gave you this great advice because I do think it's
great advice today. It's a great question. Listen, I've been doing radio for twenty twenty nine. How old nineteen ninety five, I've been doing radio for almost thirty years. I got another good ten years in me, you and me, Steve with a name like Steve. Listen, ten years from now, when that bond matures, we can go out and let's celebrate and grab a milkshake or something I see before you go. Is there any any literature that I could, you know, go through and through and see if
I can pick this up. You know more, you know this type of what kind of strategy would this it would be? I don't know what kind of passive strategy I guess you would call it for. I don't seem to be able to you know, I could go, I could get a lot a lot of information on other types of investment, but this type of this, I don't seem to be able to come across this. So I'm asking
you for some lig Yeah, yeah, listen. I would download an artificial intelligence chap about GBT or something and put in their ladder a bond portfolio. Actually, I'm going to do it. I'm gonna tell you what comes up. Ladder a bond portfolio, And you know, basically, laddering a bond portfolio is a strategy that involves purchasing bonds with varying maturity dates to balance risk and return. Man, who's smarter than I am? You know this is
artificial intelligence? Steve nobody smarter than I am when it comes to this sort of stuff. But basically, you determine your investment horizon, and you know, don't be afraid of going all the way out to a ten year ladder you know how you know, maybe you want to do a five year ladder because you want to have that milkshake with me in five years. Why wait ten years? But diversify your holdings. I do like treasuries because treasuries are
free from state tax. So even that five point four for three months, you know you're not paying state tax, so it's even higher than that. Treasuries are safe. You don't have to worry about anything happening if you buy a corporate bond. Maybe you have to remember on September fourteenth of two thousand and eight, Lehman Brothers was a triple A rated credit rating bond corporate bond, and the day after it was completely gone could put forever removed from the
earth. So I like treasuries, and you can go to Treasury direct don or YEP and buy the correct Like say you buy a thousand dollars bond, you pay say nine hundred dollars for it. You know that that's in it. You hold it to the face maturity correct. Oh yeah, when and we just you know Ryan who heads up my investment team, my son, we just bought a boatload of bonds for clients and we'll hold them all to maturity. You know, when you get a good interest rate, why mess
around? And right now, when you look at bonds, sometimes you buy it at a premium if they're already existing bond. Sometimes you buy them at a discount. But when you're buying them at par through the Treasury direct, you're literally buying them when they're issued. And that's the best way of doing it. Hey, Steve, great name. You figure out your bond ladder maturity and you know, as I said, put it into artificial intelligence.
You'll be blown away by how much information. You're going to be as smart as I am. And I want to have that melkshake with you when that when that bond matures, I want you to call this show and we're going to have a milkshake together. That's the way to do it, folks. You know, artificial intelligence is a beautiful, beautiful thing. Artificial intelligence you can't go You should play with it, folks. If you haven't started playing with it yet, you you should really play with it. It's it's it's
a beautiful thing. You're listening to. Let's talk money brought to you by Bouchef and Andrew, where we help our clients prioritize their health while we manage their wealth for life. And we're coming up to the end of the show. I'll be back on tomorrow morning at eight o'clock eight am. If you get up and your board, tune in. Go to our website. You know, you know, Steve had had a good question. Where do you
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