Mr. Money Talk

Today after you. This is Josh Arnold, this is your money talk on me here to answer your questions and stopped going with mutual funds and you should position your investment dollars including your ary in four oh one K. Don't hesitate to give us a call nine two five six oh eight. That's nine five two nine five five six oh eight. You always get straight talk, not

sugar. Code of advice say if you need a show, just a fair warning and a reminder and disclaimer that everything we discussed on the show is for discussion purposes only. Nothing should be considered investment advice. Some are all the securities we discussed on the show may or may not be suitable for you. Please consult investment advisor before making any investment decision. Investing in the stock market contains a series of risks, including the risk of loss. Well, big

Thanksgiving week, Big week, Thanksgiving week. I hope everybody have very good Thanksgiving and we're able to take advantage of some of the bargains on Black Friday.

I know this past week was very big for retail earns, and most of the retailers that reported this week from Dick Sporting Goods that did better than expected, to Best Buy that did not as well as expected, to cold stores that really had a big, big miss, and then I can throw in American Ego Outfitters, or even go back the last week to Target and Walmart. It looks as if promotional activity is going to be on the increase. Hence, you should have gotten some big bargains on Black Friday and will

probably continue to get big bargains into the Christmas selling season. As these big box retailers seemed to indicate the consumers, while still consuming, we're moving money

or spending money in other places than in retail store. They were spending more money on experiences such as going to see Taylor Swift or Beyonce and taking advantage of all the we'll say tickets that they could get online we're through live entertainment, or we're traveling and taking advantage of Airbnb, Expedia or bookings dot Com, rather than spending money on we'll say underwear at Walmart, Target or Coal's

stores. Retailing, as we've discussed before, is very, very difficult, and it looks like many retailers could be more for short term trades than for I would never buyers. I would never buy a retailer. It's too hard a business. The inventory Amazon's absolutely destroying them. It's just a really hard business. I don't think it tells you anything. And it's a really hard These stocks on the move twenty thirty percent on every quarter, and that's your

entire return for the year, is calling four quarterly earnings. Not that earnings doesn't matter for other stocks. For retailers, these things move up or down twenty thirty percent on earnings. Thing. Nobody is a clue. It's just a really hard way to make money. Not great businesses. They all go

to zero. Well, I think that that's one of the reasons why the Oracle of Omaha, Warren Buffett, had told his partner Charlie Munger, that even though Charlie Munger's Costco YEP might have been good, he wanted to stay away. Too hard, too hard. Well, definitely too hard. I mean you could even see it just with one retailer which does have a lot of or has changed their format somewhat to provide them more experiential I will say,

more experiential activity to get people to buy that being. Dick's Sporting Goods went from having some major issues last quarter to surprising this quarter very very very difficult. Well, that stocks up a bunch, and that's perfect example. You can't predict data stuff. The earrings are great and people say, oh, it's obvious. Okay, it's obvious. Stock just move fifty percent in two weeks, great, and then the next quarter will go down thirty.

I just I mentally tune out from this whole space after looking at it. You look at Bill Ackman, some of his biggest blunders Jason Penny and Target were retail names. They look they look great on the spreadsheet, but as they as the joke goes, more lies. Actually, I think this isn't really a finance show, This is a life show. More more lies are told than Microsoft Word than microsoftic cell, which is to say a lot of

lies are told the microsoftic cell. But wow, well on Microsoft or why no really no, no, no no, Like people who say moralies are told microsoftic cell than anything are talking about spreadsheet math, got it, and oh, it's really easy for me to model out this company and microsoftic sell and just believe it's going to turn around and here's my numbers, and why it's so she Well, the world doesn't work that way, and Microsoft word.

I I'm making a writing an investment meal for somebody while I'm going to be a salesesy about it, and it's just lies. It's all lies. But Microsoft does not lying. It is what what you're I'm talking about right using Microsoft's products and the spreadsheet that comes up lies about. Or I could say it right for you old people, I could say lotus, lotus notes or word perfect. The idea is the future is you know, it's very uncertain. There's some stocks there's just no go not there's no go zones.

He brought up Buffer. I mean that's sort of a lesson with him. I mean, look at this disaster. Okay, well, I mean we can talk about my favorite disaster, Media, which just continues to be horrific, Disney, Comcast, Warner Brothers, Paramount which used to be CBS, Charter Communication. I mean, these stocks are a graveyard, just so terrible, so awful, and the amount of money wasted on these things. I mean they're all released. You know, they're big capital investment stories, big

egoes. Media used to be a great place to make money with John Malone, iiger Ted Turner. There's a really good Ted Turner podcast out today. Things are just a joke. Direct to consumer has been a terrible Netflix kind of makes a little money. Nobody else makes money. Those are terrible businesses. Yeah, I mean it's very difficult, you know, in media,

just switching from retail to the media. When these guys the whole premise is we've got the content and rather than selling the content out to somebody who's going to deliver it, we might as well deliver it, deliver it ourselves, and we could deliver it, you know, cheaper, and that you have a price war based on streaming we're trying to get. You just aggregated the table bundle and you replaced it with more a ton of annoyance. Customer acquisition

cost for CAC is really high. It's none of these guys have made money. They've all lit a ton of money on fire. I never understood. I never understood why they were going to do that. Never made sense to me. No industry's coming out of favor. You change one thing and they

go brook to the nature of the beast. So I don't we up on Macy's that we're recording this on Thursday, Thanksgiving Day, Macy's Thanksgiving Day Parade on and I just think to myself, I don't want to invest anything on the TV, and I certainly don't want to invest in the in Macy's or

anything like that. With a disaster, most things are a disaster. It's we have yet another year where the S and P five hundred is outperformed, which is market cap weighted is outperforming the equal weighted by a very large margin.

Magnificent seven. You know, you can start analyzing the MAG seven and twenty fifteen that's when all the snocks were public, and I think cumulatively they're up sixteen times your money since twenty fifteen if you bought the Mag seven and the S and P five hundred, I think is up forty percent in that period. It's just it's well, that's happened in a lot of different period that's where you've had one company within the index or a group of companies within

the index is actually outperformed on a continual basis. Sorry, I have those numbers run since twenty fifteen, the early so you could started the market cap weightings up one hundred and fifty seven percent, equal cap weighted is up one hundred and one hundred and twelve percent, and the MAG seven are up thirteen point three times your money. That's very significant. It's just not even or no, fifteen times your money. The difference you would make thirteen point three

times extra your money by being in the mag seven. It doesn't matter. I mean, these find the big ones in riding. I don't with Apple. Congratulations to you with Apple coming doing what it's been doing. It is well. Apple continues to provide product, product or service that people people want. Just floating back over one ninety or we got to come back and we'll

talk a little bit more. This is Josh Arnold, mister money talk with Jet Arnold here to answer your questions on stocks, bonds, mutual funds, how you should position your investment dollars including your IRA and four one k. Don't hesitate to give us a call. Ninety five two nine five six o eight. We're here to help you. This is Josh Arnold, mister money talk with Jet on here to answer your question on stocks, bones, mutual

funds. How you should position your investment dollars including your IRA and four one k. Don't hesitate to give us a call. It nine five two nine two five five six oh eight. That's nine five two ninety two five, five, six, eight. You always get straight talk, not sure good advice. Spend forty eight minutes with us, you'll be glad you did.

As we've continued from our previous segment talking about the Magnificent Seven, that being Apple, Amazon, Alphabet or Google, Microsoft Meta, or Facebook, Navidia and Tesla. These stocks since two thy fifteen have significantly output fifteen times your money versus one point five minutes. It's just correct. I mean, it's not crazy as you brought up, or the four horsemen of the apocalypse Oricon, Microsoft, Intel, You forgot microspe Microsoft, Oracle Systems, Go and

Intel. They were most of the return in nine in the late nineties. And this just goes on. And the ETF flows be the ETF flows. And it's interesting, you know, yet again to see ten year rates wrapped. Ten year bonds rallied this year, rates went this week, rates went down. The ten year rates now down to about four zero point four to three after peaking just two or three weeks ago at five in the biggest beneficiary lower rates, obviously great for stocks, is the Big seven, the mag

seven. We also had to oil get a little bit whacked this week on some OPAC news that they might the Saudis might stop cutting so oils back to about seventy five bucks. Financial conditions are decidedly looser than they were three or four weeks ago, which means the FED probably stays tighter for a little bit longer. And we're in this same exhausting move that we've been in for the

last two years, which is what is the FED to do? It is very very exhausting with I'll say most of the talking heads continue to debate what the FED is going to do. The feeds continues to say higher for longer. We're still very concerned about the rate of inflation. Uh, and we want the option at any time should we see data that indicates inflation is still still there, to raise raise rates. And in the meantime, we're going

to maintain tighter, tighter conditions. And yet now more and more people are more and more as a more and more strategists continue to say FED is done, and we're going to be starting to call out we need to frame this debate. We don't care. We have to start right there. We don't care. We think this debate is a waste of time. The initial partage from the FED, this is anential matter. Change in FED policy was already

absorbed in late twenty one and twenty two. We don't care macro. If macro is all you think about, macro being rates, oil and all this other stuff, you're doing investing wrong. Period. Fine stocks that are going to go up, how do they go up? Higher revenue growth, higher earnings growth, change in fundamentals in industry change. We talked about media early on. Media used to be great for about thirty forty years. It's been a lousy for the last fifteen. That's going to be lousy for a while.

Oil was terrible from twenty fourteen to twenty twenty one because too much show growth in the United States meant OPAK lost its pricing power. All of a sudden, show growth slows. OPAK is attempting to reinsert itself, which means all of the sequel. The price of oil goes to seventy to eighty bucks verse forty to fifty bucks. Boom. You've got a big change. Find things that are going to grow right now, what's the only thing that has

grown the last fifteen to twenty years. He's back seven stocks. They got the print and press in the basement. I mean Google's one of the best business of all time. Microsoft in a new all time high this week, pricing now at thirty two times earnings. That's the one monopoly. If we thought we missed anything, You've got Apple and Amazon, maybe Microsoft, but

you know what, not doing too bad with Apple and Amazon. Not doing too bad with Apple and Amazon. But you bring up Microsoft, and that was a There's a lot of i'll say, excitement or and or drama this past week over over Microsoft and Open Aid, to which Microsoft has made a very substantial well they haven't made no, they haven't. Both committed to making a ten billion dollars investment for a fifty percent state, but they have not

made it. Most of what they are offering is future server capacity, which they don't have to make. And now they walk away either getting sent the team for nothing or the strengthener hand. This board, the board decided to fire, not Microsoft board. Open AI's board decided to fire the CEO without telling you anybody, all the outside investors who poured billions in. You've got a combination of people that I just love, and I mean love sarcastically.

He've got an academic from Georgetown, which this was on the board of open Ai. Open Ai came up with it with a product called check GPT. It turns out that open ai has got a very we'll call it unique business structure, that being a uh five oh one c three nonprofit owns a profitable

well, we won't bore you, we have it. This is another instance of a board being absolutely insane for whatever reason, they fire the founder and the CEO, not telling the outside investors they don't have a noncompete so he can get hired by literally anybody. They have to change cos midweek bring him back. The number three guy at the company helped leave the palace coop. Now he's saying it was all a mistake and he's trying to play dumb.

This is every time I see these matchinations, I just want to throw up. People think the corporate America is sophisticated and whatnot. Boards are typically dysfunctional. It's just anyway, for Microsoft, it's a net positive because they're going to get a greater state grade of control of open Ai. Jack Ebt, Microsoft's doing just I think this is all noise. It's it's interesting to read

about. I think it's all noise. I think the real simple, super simple story is rates has stopped going higher, and that's a tailing for stocks and oil state and we're entering an election year, which is typically good for stocks. Well, let's just spend a few minutes on Microsoft. Microsoft is you would end up being a leader in this generative AI and maybe they become a dominant you know, very dominating. You're you're paying thirty some times earnings

for it, it better be dominant. Yeah, okay, I don't. Microsoft has typically had a fairly high HiPE for very long long period of time, and they've added some additional products you on the back of this generative artificial intelligence. Microsoft has one of the best monopolies of all time, which is Microsoft Office. It's their number one products, the best thing ever. Microsoft

Windows is obviously a secondary monopoly that's really good. You got their server business, which is okay, But realistically Microsoft, they just need to keep maintaining Office and Windows. But thirty some times earnings, I don't know. Maybe they'll do good. Who the heck knows who wins TODAI. My best guest with AI is the same people who've been winning in tech a're going to keep winning Amazon, Microsoft, Apple, Google, Facebook because they have the most

money to invest. AI is expensive, and I don't know how AI transitions into something profitable. It sounds like an extra layer on top. It seems all theoretical to me. But we'll see. Yeah, I don't. I mean they're giving away the product. Well that's the point they're using it. You know, ten million dollars for Microsoft there investment in open Ai. Who cares? It means nothing. It's a multi training dollar company. So yeah,

I don't know. Palisingering. This is just all a fancy way of saying that there's seven stocks in the market that have been out performing everything, and keep buying them, and here's a story going on with one of them. Okay, well we like, we like at least two of two of them. One of one of these didn't report earnings this week, that being the video one of the Magnificent seven. I think they were the last last

of the seven to report. They reported some fairly decent, decent numbers, but the stock did not react positively to their their numbers because they were a little bit cautious into the next quarter due to what has been going on in China. We'll talk about that and more when we come back with more money talk. This is Josh Arnold, mister money talk with Judd Arnold, always here to help you. Don't hesitate to hear us a call at nine five

two nine two five five six eight. We're happy to sit down with you and provide you some direct direction in this market. This is Josh Arnold, mister Money talking with Jut Arnum here to answer your questions on stocks. One on mutual on is how you should position your investment dollars including your riot rate and four one K. Don't hesitate to give us a call at nine two five six eight. That's nine five six oh eight. You always get straight

talk, not you your COVID advice real quick. If you missed the start of the show, do keep in mind that everything we discussed on the show is for discussion purposes only. Nothing should be considered investment advice. Some are all of the securities we discussed in the show may or may not be suitable for you. Please consult the financial advisor before making any investment decision. Investing

the stock maintains a series of risks, including risk of loss. In Vidia with the bat I didn't want to say a bad guy in video is a super expensive stock as well, so, so focusing on quarterly earnings moves is exhausting and whatnot. I think most people need to acknowledge if you're not a Wall Street type, and even if you are a Wall Street type, the biggest quote unquote armatry are investing is time arbitrage, i e. Having a

longer time horizon and letting things work. So so we talked about Microsoft last night. Microsoft did nothing for fifteen years. Yeah, I mean absolutely nothing. But now you look at the stock shurnt versus the tech bubble in two thousand, you can't even see it. Compare that to Cisco, where it's still not back up to his pre tech bubble high. But to Nvidia seeing some soccer economy stuff, the stock was, you know, the stock's up five x this year, so it's oh, it's very very expensive stock.

It's done very very well. I've had some okay trades in I'll say in the video or with the video, as well as a few other semiconductor names, but that that area has been very difficult for me for I'll say, through the years, not just for any particul through a year, but through the years, trying to get the semiconductor cycle it's a really hard it's a really hard space. It's just thought. It's another hard space and aim at Lamb Research I was very polished on in fourteen fifteen. Boys, I had

a lot of ups and downs. They've worked, but there's been better traits to be at. And quite frankly, all of these things, which is playing on more digitization, more chips and all that other stuff, you end up doing just fine. In the Mags Oven you don't. But actually, I say the Mag six you don't need to own the chip stuff. Yeah, you don't need to own a video, but I mean, look in videos of five times it's done incredibly well. They displaced Intel what I got,

Well, they've displaced Intel, and AMD is also displaced Intel. Yeah, and Intel is now trying to change what they've they've been doing. But intel stock, somebody could point out, jeez, intel stock is up a bunch from it's low. So is Intel going to be the next place to invest in? The chip? Chip space seems really hard. I have no idea. I have no idea. Most things I have no idea about.

So what do you have an idea about? I don't know. Other than your daughter, I don't know we've had a looking back, we've had a volatable and very profitable year we've had. We've done very well. And offshore, our tide water Calm they do boats offshore rigs has done incredibly well. That's come back recently from Ohio mid seventies to mid fifties, but still way up from where we bought it, which was under thirty bucks about a year

ago. That's been great. Our ontology stock is doing incredibly well. Ticker's TOI. That is a small camp stock, incredibly small. It's about a two hundred million dollar company, but that has done really well. We've that's been our biggest winner in the oncology institute. We bought it at the bargain basement price and if you want to do a fully diluted because there's one hundred million share, they bought it for sixty five cents to share, so they

paid sixty five million bucks for the equity. It's got one hundred million at debt. And the stocks around me this year from a low of thirty five cents to a high two dollars and sixty cents. You know, if you multiplay stock prices buy one hundred bucks, they start to sound like your kind of stocks, Like I like that, like my kind of stocks. Yeah, well, but I do do prefer you know, more, you know,

large capitalization stocks rather than the small capitalization stuff. So you like, I'll say this with the oncology inst do one of the things that we may be doing more of is I offered to buy the company. I think that was that was kind of kind of clever. You know. When you told me about that, I remember that you have to you'd have to go out and raise a lot of money to that company. But I know you well, the company responded in the way I was hoping they would respond, not

interested, not interested, and they went back to the drawing board. This idiot thinks he can buy our company for I offered a dollar twenty lo and behold, they got that snock over a dollar twenty real quick. I was pretty pretty pretty happy. See have an activist in the family. Oh. I think there is a tremendous opportunity in small and mid cap stocks over the next couple of years. Now, the problem with it for most people is

most people are not doing what I'm doing. They're not buying big steaks and offering to buy companies. There's also I will fully acknowledge if you buy a basket of these, meaning multiple, you're probably not going to do very well. Most of them are not going to in well. Even some of the ones I invested are not going to do well. But the way when you invest in in that arena is very, very difficult and there's more chance of

loss. Let's say, A big takeaway for me and multiple people who I've reached out since is the feedback of if you're going to go in, make sure that you can shake the tree, so to speak, and be an activist. I think it's a really big thing because also you're not going to be an activist in every stock, so it needs to set up right. And that's a really good check on do you have a good investment piesis can you defend your position and what Because it's going to be evolile, it's going

to be less liquid, not for everybody. And again we would not recommend buying quote unquote the menu. There's the Russell two thousand, you can buy the ETFs IWM. I would not recommend it. It's the smallest two thousand. Others top three thousand stocks. What would you recommend going into to an index like the Russell Russell two thousand IWM. As I've listened to I'll say the Financial TV and numerous say strategists for investment people on there have said buy

these indices rather than buying or picking any individual stocks. And there's a huge difference between buying the Russell and buying the S and P five hundred. By the Russell, you get two thousand mediocre to bad companies. Because it's still diversified. The best companies can't offset the battles. Think about the S and P five hundred versus the equal weighted S and P five hundred, Well, you have a lot more weight the top ten stocks for thirty percent of the

index. Top ten stacks tend to be the best companies, right, Okay, so most of your money is in the best stuff, right, And that's why year after year the S and P five hundred typically outperforms the equal cap weighted. Now, you go through long periods like after the tech bill where you got a bunch of garbage goes up and becomes a big weight in the S and P five hundred, but typically as long since somewhat slow moving,

the good ones offset the more than offset the losers. Because again simple math, you can lose one hundred percent on bat, you can lose one hundred percent on bad, and you can make more than one hundred percent on good. And so when you have the S and P five hundred where we're talking about, look at look the max sevenths and twenty fifteen have done about

fifteen times your money. Right the regular S and P five hundred, the market cap weighted has done one point one hundred and fifty five percent or one hundred and fifty seven percent. Oh, that's a huge thirteen point five times your money. More in the seventh stocks verse just a verse fine by being the S and P five hundred, then the equal cap weight it's only up you know, I think it's about one hundred percent. So leaning into your winners is a big thing, and that's a big part of your strategy,

which is you don't sit there. You know, off of made this joke years ago. Selling your winners to double down your losers is watering your weeds to cut your flowers. Yeah, and winning company winners to tend to keep winning, and they can keep winning because they're better businesses. So there there you have it. Well, I do know with one of one of my

winners. People will always want to want to knock it down, and you know they can knock the sock down tempor earlier, not the company down temporarily, but for some strange reason. For as long as I've held Apple, I'll say my my research shows that it's going to keep coming back. Well, well, we'll have to come back and wrap up because his Josh Arnold missed her money talk with Judd Arnold always here to help you. Don't hesitate to give us a call at six eight. Spend forty eight minutes with us.

You'll be glad you did. Nine five two nine two five five six oh eight. This is Josh Arnold missed her money talk with Judd Amart here to answer your questions when stops going on mutual funds, how you should position your investment dollars including your IRA and four O one K. Don't hesitate to give us a call. It nine five two nine two five five six oh week it's nine five two nine two five five six eight. You'll get straight talk. Not sure you go of advice, Well, jud the bond market

has rebounded a little bit in the past. We'll say we can week and a half as the ten year treasury you has gone from we'll say five percent now to just under or four point four percent. That means that bond prices have gone up as yields have come down. And that also is an indicative that mortgage rates have also come down. And I have been hearing again strategists saying, oh, that's why you should be putting money in bonds as interest

rates come down. Now bond traces are going to make money and you've locked in. If you were smart, you would have locked in these high yields and now you've got the yield plus some appreciation. Now, my response has always been I want to own stocks because if interest rates, Yeah, if interest rates go down, you make more money in stocks. The time to own bond the time you feel best about owning bonds is when stocks have gotten

slaughtered. The problem with this current period of time, when interest rates were historically low they started going up is their move up in rates, which is down and bond prices slaughtered bonds and stocks equally. Yeah, it's been a so now you want to tell me and after both look, I don't want to tell you what anything. I want to avoid bonds. Well, for both of them. The whole point of bonds is to protect when stocks sell

off. The last three years has been the most horrific bottom. Now to sit here and bound the table on bonds, which effectively, now we're going to concede it. Not us. We've been saying it the whole time. You're just making an interest rate bet. But for these people say, well no, look now it's time to lock it in. Take duration, move from short term to long term. What have you? Okay, great, I'll tell you this much. If you're right on bonds from here, you're

going to make way more in stocks. The only time bonds outperformed stocks is when stocks sell off. And this time, we said it for ten years. This was not they weren't going to protect you, and they didn't. You lost a truckload of money over a thirty year capital and bond in the last three years. I think you've actually lost a little more than that. You lost more than stocks. You lost a lot more than stocks on the same macro economic thing that the Fed was going to eventually raise interest rates,

and they did it. So look, some people like bonds. Great. I think you're wrong. I think you're demonstrably wrong. I think all the evidences. You're wrong, and I think you're not making a safety net and making an interest rate bet. But congratulations, because your financial advisor may charge you higher fees for investing in. If you're going to buy bonds directly,

you're gonna get your face ripped off on biit ass threads. Well, you're going to get your face hurt as well buying a bond thow Well bond from Yeah, none of them traded that assid value. They all traded a discount. But look, some people like this stuff. It's fine, it's fine. Some people do it. I think it's a joke. Not that I know anything about bonds. I mean I only worked in the distress debt for eight years. Did you really? Did you really? I know, you

know an awful run about bones. All you know, distress bonds are basically you're buying very complex equity investments typically and then with investment grade in treasury bonds. I'll tell you this much. The only people I know who made a killing in investment grade in treasury bonds do it with a lot of leverage. And if you're going to take a lot of leverage, why don't you just buy a stock? Well, I don't even need to. You don't need

leverage, you're not tax advanged on all these other things. But what people say about bonds is so colored by the forty year bond bull market that we had from when vulgar defeated inflation and treasuries were paying seventeen percent for ten years. Wow, shocker, this is ten year treasury rates. Yields went from seventeen percent to two percent. You made money in bonds. My mind is well, if you don't understand my sarcasm, rates coming down is a tailing

for bond prices moving up. Goodness in reverse. Goodness gracious, but so be it. The secondary point on bonds is how much duration you want to take. And we have consistently said recently if you want to buy bonds just by short duration, and then the bond goals will say, well, then you have reinvestment risk. I say great. I would rather have reinvestment risk than take price risk, because if I'm wrong in interest rates on a two year bond, the bond matures in two years and I can save myself.

If you're wrong on interest rates on a ten year bond, you can lose real money and your stock all you have to do is what is the fair and balance counter to what I am saying. This is the other thing I struggle with. Yeah, there is no fair and balance counter You're going to lose money if interest rates go up and you and you're gonna pay higher fees. Don't get me wrong, Okay, if the interest rates go I'm trying

to find prices come down. There is no fair, fair and balanced in this other than you get if you're buying a bond, it's going to pay you twice twice a year, whatever the coupon is. But I know the other thing that annoys me about bonds. Literally every financial crisis we've had in my lifetime, and most of the ones before my lifetime, have occurred when it's supposedly triple A security has been proven to not be triple A. Correct.

I just I just always said, let me unpack that for people right now, Silicon Valley Bank Court and Signature Bank, the two big bankruptcies this year, and for what's FRC. What am I First Republic First Republic Bank all blew up on buying treasuries, triple A mortgages and some commercial mortgage backed

securities, right and they were they were levered up a little bit. They levered the daylights out of them in the day of the funding this match, they borrowed up for a year and they leant out for ten to twenty During the global financial crisis of seven AM and nine, all these triple A securities from the subgrime, they slide and dice them, got triple A ratings and blew these people up. And you know ninety nine eight it was ninety eight.

Wait the sovereign crisis where everyone said that a sovereign issue I'm talking about Russia would never default on their own currency bonds. They did. It was the first thing. And the joke there is you don't default in your own currency because you can just print more of it. Well, then I can go back to the SML crisis in nineteen ninety. That's my other problem with bonds, which is they seem well volatility. Then when a financial crisis happens.

If you want to feel volatility, wait till you see bond price quotes during a financial crisis. There either are none or the bond that you wanted ninety five cents is offered a sixty five and you want to throw up because all these people who thought you know own the same stuff. Is it's safe for regulatory tap requirements are blowing up up on a triple a ascid. Oh goodness, all right, anyway, going, some people out there have a reason to buy them, and I hope you people touch them. Let's be

talking about what we're thankful for. We're thankful for finding great returns, great family, having great clients, great weather, and great health. And I think it's going to be a great next twelve months. Despite how pessimistic I sound, I'm actually very I don't. I don't think you sound pessimistic. I think you sound very, very truthful. When you're you're talking, you're talking about things that you're passionate about and and and those things that do not

make sense. And to us, investing in bonds does not make sense. Investing in companies with growing sales, which should produce growing earnings over a period of time, and and by and companies that produce a product or service that people need or want, makes up makes a lot of sense. This is Josh Arnold, mister money. Talk with Judd Arnold. Have a wonderful Thanksgiving weekend, and remember give us a call. We're here to help you.

Nine five two nine two five five six eight. Josh Arnold Investment Consultant is a registered investment advisor located in the state of Minnesota. All securities discussed are for informational purposes only. Investment contains risk, including risk of loss. Consult your investment professional before making any decisions about your investment portfolio.