Latest / The Financial Exchange Show / Are the days of set it and forget it investing over?

Transcript

Are the days of set it and forget it investing over? · The Financial Exchange Show

0:00
Speaker 1: The Financial Exchange is produced by Money Matters Radio and
0:02
Speaker 1: is hosted by employees of the Armstrong Advisory Group, a
0:05
Speaker 1: registered investment advisor. All opinions expressed are solely those of
0:08
Speaker 1: the hosts. Do not reflect the opinions of Armstrong Advisory
0:11
Speaker 1: or anyone else. Investments can lose money. This program does
0:14
Speaker 1: not offer any specific financial or investment advice. Please consult
0:17
Speaker 1: your own financial, tax, and estate planning advisors before making
0:20
Speaker 1: any investment decisions. Armstrong Advisory and the advertisers heard on
0:23
Speaker 1: this program do not endorse each other or their services.
0:25
Speaker 1: Armstrong and Money Matters Radio do not compensate each other
0:28
Speaker 1: for referrals and are not affiliated. This is the Financial
0:34
Speaker 1: Exchange with Chuck Zada and Mike Armstrong, Your exclusive look
0:38
Speaker 1: at business and financial news affecting your day, your city,
0:42
Speaker 1: your world. Stay informed and up to date about economic
0:46
Speaker 1: and market trends plus breaking business news every day. The
0:50
Speaker 1: Financial Exchange is a proud partner of the Disabled American
0:53
Speaker 1: Veterans Department of Massachusetts. Help us support our great American
0:57
Speaker 1: heroes by visiting dav five K Boston and making a
1:01
Speaker 1: donation today. This is the Financial Exchange with Chuck Zada,
1:06
Speaker 1: and Mike Armstrong.
1:08
Speaker 2: Our two of the financial exchange. Chuck, Mike and Tucker
1:11
Speaker 2: with you. We got stocks in mixed territory right now.
1:14
Speaker 2: The Dow Jones Industrial Average, or the DIJA as it's
1:18
Speaker 2: more commonly known, is currently up one hundred and sixty
1:22
Speaker 2: eight points, a little less than half a percent. The
1:24
Speaker 2: S and P five hundred is up five points, about
1:26
Speaker 2: a tenth of a percent, but the Nasdaq down half
1:28
Speaker 2: a percent eighty points in the wrong direction. Big culprits there,
1:33
Speaker 2: Tesla down almost six percent on the day, and Video
1:36
Speaker 2: down about two Amazon and Meta both down about one
1:39
Speaker 2: and a half. Apple also down.
1:40
Speaker 3: One to a quarter.
1:41
Speaker 2: So interesting thing the S and P five hundred I
1:43
Speaker 2: mentioned it, it's almost flat like it's up a tenth
1:46
Speaker 2: of a percent right now. There are three hundred and
1:49
Speaker 2: sixty three more stocks that are up on the day
1:52
Speaker 2: than down on the day for the S and P
1:54
Speaker 2: five hundred. But the gravity of the big boys is,
1:59
Speaker 2: you know, kind of keeping them struggling a little bit.
2:02
Speaker 2: So if you actually looked at the S and P
2:03
Speaker 2: five hundred on an equal weighted basis, meaning each component
2:06
Speaker 2: is the same waiting instead of market cap weighted, it's
2:09
Speaker 2: up about one percent today. It's just the big guys
2:12
Speaker 2: are really, you know, trying to drag it down. At
2:15
Speaker 2: this point ten year US Treasury is down two point
2:19
Speaker 2: nine basis points to four point two seventy nine at
2:22
Speaker 2: the moment, and we've got Oil West Texas Intermediate up
2:28
Speaker 2: twenty three cents a barrel to sixty seven to forty one.
2:31
Speaker 2: I gotta say that the headline that you can click
2:34
Speaker 2: on on CNBC just comes across as a very dystopian
2:39
Speaker 2: for the energy area. Oil up one percent is US
2:43
Speaker 2: vows to keep attacking Hohothi's it just it's a little aggressive,
2:49
Speaker 2: but I guess that's that's factual in terms of happen
2:52
Speaker 2: it is factual. Gold is up five point fifty and
2:56
Speaker 2: ounce to three thousand and six dollars and sixty cents.
2:59
Speaker 2: We'll see if it gets first close above three thousand
3:01
Speaker 2: a day. Remember on Friday it passed three thousand for
3:04
Speaker 2: the first time, but could not hold it through the
3:06
Speaker 2: remainder of the day. And that is what is going
3:09
Speaker 2: on in markets.
3:11
Speaker 4: One other thing to mention, in terms of equities, you
3:13
Speaker 4: did have all three indices and negative territory and pre
3:17
Speaker 4: trading all three opened and positive territory during regular market trading.
3:21
Speaker 4: And now you have all three sorry, the nasdak Off
3:25
Speaker 4: and SMP and SMB bare league holding onto gains, and
3:28
Speaker 4: Dow sizably holding on to its gains.
3:30
Speaker 2: Let's talk a little bit about what we're seeing in
3:33
Speaker 2: the job market, specifically the job market for gen zeers.
3:38
Speaker 2: And there's a piece in Bloomberg opinion from connorson and
3:41
Speaker 2: just to give you an idea, if you look at
3:46
Speaker 2: February of kind of key years and where the unemployment
3:51
Speaker 2: rate is for twenty to twenty four year olds. If
3:53
Speaker 2: you go back and look at two thousand and one,
3:55
Speaker 2: it was three point nine percent, then tech bubble jumped
3:57
Speaker 2: it up to five point seven and then six percent
4:00
Speaker 2: subsequent years.
4:00
Speaker 3: Gry.
4:01
Speaker 2: This is for who specifically aged twenty to twenty four
4:03
Speaker 2: got it. If you look at the financial crisis in
4:05
Speaker 2: two thousand and eight, of February of two thousand and eight,
4:08
Speaker 2: remember that was before things broke. It was September October
4:11
Speaker 2: of eight when things really broke. In February of eight
4:15
Speaker 2: h twenty to twenty four unemployment was four point three percent.
4:18
Speaker 2: By the next year it was nine and then was
4:21
Speaker 2: you know, floating around nine for a couple of years after.
4:23
Speaker 2: In twenty seventeen, when President Trump came into office in
4:27
Speaker 2: his first term, it was five point seven percent. Over
4:29
Speaker 2: the next two years it went down to four point
4:31
Speaker 2: five and four point two percent, respectively. Which we've talked
4:34
Speaker 2: a lot about how good the job market was in
4:36
Speaker 2: two thousand and nine. This is the trend that we're
4:38
Speaker 2: on now though. Twenty twenty two four point six percent,
4:42
Speaker 2: twenty twenty three, four point six percent. February of twenty four,
4:46
Speaker 2: it was at five point three. In February of twenty five,
4:48
Speaker 2: it was at seven point four. There is a growing
4:52
Speaker 2: youth unemployment problem right now, and it is significant. And
5:00
Speaker 2: I know that, you know what, we don't get many
5:05
Speaker 2: twenty one year.
5:06
Speaker 3: Olds that listen to our show.
5:07
Speaker 2: Don't say that we don't a lot of twenty one
5:10
Speaker 2: year olds don't listen to terrestrial radio. True, it's just
5:13
Speaker 2: how it is. As such, I don't think we get
5:17
Speaker 2: a lot of feedback from that demographic about what they
5:20
Speaker 2: are seeing out there. And the story for those who
5:23
Speaker 2: are already in the workforce has been one that we've
5:25
Speaker 2: covered a lot in the last six months, which is, hey,
5:27
Speaker 2: if you have a job. You're not really seeing an
5:29
Speaker 2: increase in layoffs, but if you don't, it's hard to
5:33
Speaker 2: get one. You're seeing this in that youth unemployment number.
5:36
Speaker 2: The people trying to break into the workforce, their unemployment
5:39
Speaker 2: rate is up fifty percent in the last two years.
5:43
Speaker 4: Yeah, So contextualizing this, it is a very challenging job
5:47
Speaker 4: market for especially those graduating in say white collar type
5:52
Speaker 4: looking for white collar type jobs because of the stagnation
5:55
Speaker 4: in that labor market. There are other areas where it's
5:57
Speaker 4: easier to find jobs, but it is very much much
6:00
Speaker 4: a stagnating labor market, and what that has meant is
6:03
Speaker 4: employers holding on to their existing employees, which trend older,
6:07
Speaker 4: and not doing a whole lot of hiring. The context
6:11
Speaker 4: that is important too. Right when we talked, I don't
6:14
Speaker 4: know why I had slightly different numbers on youth unemployment
6:16
Speaker 4: the twenty twenty twenty to twenty four unemployment rate, then
6:19
Speaker 4: you did, chuck. But the numbers that I saw in
6:21
Speaker 4: either case were that we have now hit unemployment rates
6:26
Speaker 4: that outside of COVID, we haven't seen for young people
6:29
Speaker 4: since mid twenty tens. Twenty sixteen was the last time
6:34
Speaker 4: we were this high. And so you know, putting that
6:38
Speaker 4: all in context, is it worse than the Great Recession? No,
6:40
Speaker 4: that that is not what we are experiencing right now,
6:43
Speaker 4: not really. But that's not a great benchmark. No, it's
6:47
Speaker 4: so it is. Yeah, it is a challenging labor market
6:50
Speaker 4: for young people right now. And I don't think that's
6:53
Speaker 4: because there's some youth bias. I think it is entirely
6:56
Speaker 4: because or by the way, it's not because age bias
6:59
Speaker 4: has rest itself and suddenly we prefer older employees. It
7:02
Speaker 4: seems purely because companies are in a standstill moment where
7:08
Speaker 4: they know they neither want to hire nor fire existing employees.
7:13
Speaker 2: I want to talk about one other thing and try
7:14
Speaker 2: and again, this is all just like us throwing around
7:18
Speaker 2: what we think is happening on this stuff. Artificial intelligence.
7:24
Speaker 2: If there's one area that it's probably useful to the
7:30
Speaker 2: max right now for companies, it's probably in being able
7:35
Speaker 2: to replicate entry level position assignments.
7:40
Speaker 4: So let's take one of the most highest paid entry
7:43
Speaker 4: level assignments, investment banking in New York City on Wall Street. Yes,
7:47
Speaker 4: typically an in person job done done by twenty to
7:51
Speaker 4: twenty eight year olds, pays a whole boatload of money
7:56
Speaker 4: because you work ninety hours a week and you put
8:00
Speaker 4: together slide decks and presentations and assist with all sorts
8:03
Speaker 4: of analyzes, all of which I have gotten a little
8:06
Speaker 4: bit easier with the advent of artificial intelligence.
8:08
Speaker 2: And it's not necessarily that you're just saying, hey, let
8:10
Speaker 2: me feed this into AI, and you know, like a
8:13
Speaker 2: senior person's not doing that all. But it might be, Hey,
8:16
Speaker 2: instead of needing three new banking analysts this year, maybe
8:20
Speaker 2: we only need two. And if that's if that's repeated
8:24
Speaker 2: across the industry, and then in other industries, you've got
8:27
Speaker 2: a problem.
8:28
Speaker 4: I would also say that, you know, let's take that
8:30
Speaker 4: investment banking example and extrapolate it. You're seeing your younger
8:34
Speaker 4: employees be more effective because of artificial intelligence. You the
8:38
Speaker 4: investment bank yourself, are also possibly a little bit pessimistic
8:42
Speaker 4: about deal making in twenty twenty five. What companies do
8:47
Speaker 4: you know right now that are actually we've seen a
8:49
Speaker 4: few of them, but looking to make big acquisitions at
8:52
Speaker 4: the moment in the face of uncertainty around trade tariffs
8:54
Speaker 4: like it plays all into this and can speak to
8:58
Speaker 4: a slow down and hiring.
9:00
Speaker 3: For those entry level, folks.
9:02
Speaker 4: Now, I don't know that the AI effect is actually
9:04
Speaker 4: been felt yet. It's just again we're cutting up with
9:06
Speaker 4: theories here about what might be happening. It's really tough
9:08
Speaker 4: to measure.
9:09
Speaker 2: Now here's the other piece that I want to say,
9:11
Speaker 2: as a proud millennial who eats avocado toast eight days
9:15
Speaker 2: a week and twice on Sundays, yes, that's how you
9:18
Speaker 2: get to the eight. I know what it feels like
9:21
Speaker 2: to have someone tell you, hey, your cohort is going
9:24
Speaker 2: to be permanently disadvantaged because of the environment that you
9:26
Speaker 2: were in. Because we came of age during the Great
9:29
Speaker 2: Financial Crisis, and everyone said, well, millennials are never going
9:32
Speaker 2: to be able to accumulate wealth, They're not going to
9:35
Speaker 2: own homes, blah blah blah blah blah blah blah blah
9:37
Speaker 2: blah blah. And newsflash, the data that we now have,
9:41
Speaker 2: you know, sixteen years after the financial crisis, is that
9:44
Speaker 2: millennials are generally in either about the same place or
9:47
Speaker 2: in some metrics better off than previous generations financially. And
9:52
Speaker 2: so you can't, you know, simply look at this and
9:55
Speaker 2: be like, well we should you know, gen z's are
9:57
Speaker 2: screwed or they're like there's always going to be a problem. No,
9:59
Speaker 2: it's it's not necessarily that. I never like to say
10:04
Speaker 2: that anyone has it inherently better or worse than anyone
10:07
Speaker 2: else from a generational standpoint in the United States, just
10:09
Speaker 2: because historically that's just not how it works. It's like, okay,
10:15
Speaker 2: like sure, you know, everyone always likes talking about the
10:18
Speaker 2: Baby Boomers and be like they had it so good,
10:21
Speaker 2: Like they you know, they were able to buy home
10:23
Speaker 2: so cheaply back in the early nineteen eighties and then
10:26
Speaker 2: the stocks only went up in this and that and everything.
10:29
Speaker 2: It's like, yeah, but the Boomers had to live through
10:31
Speaker 2: the nineteen seventies, which was like a ten year period
10:33
Speaker 2: of economics sucks. So don't tell me that like they
10:35
Speaker 2: just had it easy. They had their hard stuff to
10:38
Speaker 2: go through as well. You know, people look back at
10:42
Speaker 2: like the Greatest generation, they're like, hey, economically things were
10:44
Speaker 2: great for them, like they were through the nineteen fifties,
10:47
Speaker 2: and this is like, yeah, but I have them died
10:49
Speaker 2: in World War Two. Like you don't just get to
10:52
Speaker 2: be like cherry picking the parts that fit your story.
10:55
Speaker 2: Like every generation has both good and bad things. That
10:59
Speaker 2: they have to deal with, and I remained unconvinced that
11:02
Speaker 2: anyone inherently has it better or worse just because of
11:06
Speaker 2: the exact dates that they were born, unless you're talking
11:08
Speaker 2: about like the Spanish Inquisition or something like that.
11:11
Speaker 3: What I'm trying to be as general.
11:14
Speaker 4: As possible as here, but both of us, Chuck you
11:17
Speaker 4: and I Antucker entered the labor force, yes during the
11:20
Speaker 4: Great Recession, when unemployment rate for the overall population, let
11:24
Speaker 4: alone teenagers was you know, capping out at ten percent
11:27
Speaker 4: and remained in the high single digits for most of
11:31
Speaker 4: the first decade of both of our careers. I'm trying
11:34
Speaker 4: to think of the practical advice there.
11:36
Speaker 3: One.
11:37
Speaker 4: I think a lot of young people, for good reason,
11:40
Speaker 4: want a job in their.
11:43
Speaker 3: Future area of interest.
11:46
Speaker 4: Right you see any of those friends who got that
11:48
Speaker 4: job in investment banking after graduating with an accounting or
11:51
Speaker 4: business degree, and that's enviable. I think my point would
11:55
Speaker 4: be any job that you work, no matter whether it's
11:59
Speaker 4: related to you eventual industry of interest or not, will
12:03
Speaker 4: help you more than you know staying out of the
12:05
Speaker 4: labor market and remaining unemployed for a period of time.
12:07
Speaker 4: I don't care if it's washing dishes or you know,
12:10
Speaker 4: working in the healthcare industry when you want want to
12:12
Speaker 4: work in the finance industry. That would be My only
12:15
Speaker 4: takeaway is you know, certainly having something on that resume,
12:19
Speaker 4: no matter how related or unrelated it is to your
12:22
Speaker 4: eventual field of interest, is very important.
12:24
Speaker 2: Yeah, it's Look, I'm a big believer that. And again,
12:31
Speaker 2: I think that you only accumulate this as you get
12:32
Speaker 2: like a little old or not that I'm like old
12:35
Speaker 2: and gray.
12:35
Speaker 3: I only have like, doesn't any hair.
12:38
Speaker 2: No, but I would say my beard's like sixteen percent
12:42
Speaker 2: gray at this point.
12:43
Speaker 4: It's yeah, it's it's yeah, tough to tell, but yeah,
12:45
Speaker 4: sure let's go sixteen percent.
12:46
Speaker 2: It's getting there.
12:47
Speaker 3: Yeah.
12:48
Speaker 2: Look, I think that when we're young, we put so
12:50
Speaker 2: much importance on like needing to have like the right
12:53
Speaker 2: job in this and that, And quite honestly, I I
12:57
Speaker 2: think a lot of what we get told about how
12:58
Speaker 2: to work is pure poppycock. I think ultimately a job
13:03
Speaker 2: you want two things out of it, and the rest
13:05
Speaker 2: is gravy. Quite honestly, the first is to work in
13:08
Speaker 2: a place where the people that are around you, you know,
13:11
Speaker 2: generally treat you like a human being. And an autonomous
13:13
Speaker 2: being and respect you and don't like treat you like
13:15
Speaker 2: crap for any job where like someone's actually treating you
13:18
Speaker 2: like crap, Like get out and do something else. And
13:21
Speaker 2: the second piece is, hey, can I make enough to
13:24
Speaker 2: do what I want to do? All the other stuff
13:27
Speaker 2: about quite honestly, like, well, I need to follow my
13:29
Speaker 2: passion and I need to do something with meaning.
13:32
Speaker 4: I don't know that you do. That's what fifty year
13:34
Speaker 4: olds are for, and that's what the money's for. Yes,
13:37
Speaker 4: as John Ham says, passion. There will be plenty of
13:40
Speaker 4: time for that. Yes, but do it once you have
13:43
Speaker 4: a built up series of expertise that you can go market.
13:45
Speaker 2: Do some work somewhere that people respect you and treat
13:47
Speaker 2: you like a human being and get paid halfway decently.
13:50
Speaker 2: Other than that, you'll figure it out. Take a quick break.
13:53
Speaker 2: When we come back, We've got trivia after this.
13:56
Speaker 1: There's only one show that follows well streets continued relatility.
14:01
Speaker 1: Keep it here all morning long on the Financial Exchange
14:04
Speaker 1: Radio Network. The Financial Exchange streams live on YouTube. Like
14:08
Speaker 1: our page and stay up to date on breaking business
14:11
Speaker 1: news all morning Loan. This is the Financial Exchange Radio Network.
14:20
Speaker 5: The Financial Exchange is proud of our partnership with the
14:24
Speaker 5: Disabled American Veterans Department of Massachusetts. This year's five K
14:28
Speaker 5: is Saturday, November eighth, and registration is now open. The
14:32
Speaker 5: race has sold out each of the past four years.
14:35
Speaker 5: In slots will fill up quickly, so don't delay. Visit
14:39
Speaker 5: DAV five k dot Boston today and reserve your spot.
14:42
Speaker 5: Our join Team TFE here at the Financial Exchange. That's Saturday,
14:48
Speaker 5: November eighth for this year's DAV five K. Sign up
14:51
Speaker 5: now at DAV five k dot Boston. Time for trivia
14:55
Speaker 5: here on the Financial Exchange in Today is of course,
14:58
Speaker 5: Saint Patti's Day, a day when millions of people around
15:02
Speaker 5: the world celebrate a saint who isn't actually a saint.
15:05
Speaker 5: There are many legends surrounding the life of Saint Patrick,
15:08
Speaker 5: but none more ridiculous than the one way he banished
15:12
Speaker 5: an entire species of animal from Ireland. Trivia question today,
15:17
Speaker 5: which animal did Saint Patrick allegedly banish from Ireland? Once again,
15:22
Speaker 5: which animal did Saint Patrick allegedly banish from Ireland? Be
15:27
Speaker 5: the fifth person today to text us at six one,
15:30
Speaker 5: seven three six two thirteen eighty five with the correct
15:32
Speaker 5: answer and you win a brand new Financial Exchange Show
15:35
Speaker 5: T shirt once again. The fifth correct response to text
15:38
Speaker 5: us at six one seven three six two thirteen eighty five.
15:41
Speaker 5: We'll get that T shirt. See complete contest rules at
15:44
Speaker 5: Financial Exchange Show dot com.
15:47
Speaker 2: Piece in the Wall Street Journal in this this is
15:49
Speaker 2: gonna take us a couple segments to get through, because
15:51
Speaker 2: I think there's.
15:52
Speaker 3: A lot of meat here.
15:53
Speaker 2: Quite honestly, it's titled the Challenge of Selling high end
15:56
Speaker 2: Homes in America's Disaster Zones. Honestly, what a freaking open
16:02
Speaker 2: they have here. Quote welcome to your dream renovation project.
16:06
Speaker 2: That's the pitch on the listing for a five bedroom
16:08
Speaker 2: ocean front mansion selling for six point five million on
16:11
Speaker 2: Santa bell Island, an area on the west coast of
16:13
Speaker 2: Florida that was ravaged by Hurricane Een in twenty twenty
16:15
Speaker 2: two and then hit again by Hurricanes Helene and Milton
16:19
Speaker 2: in twenty twenty four. The home sustained water damage when
16:22
Speaker 2: the roof failed during one of the storms, and the
16:24
Speaker 2: structure should be raised up a little, but most of
16:26
Speaker 2: the value is in the land, according to the listing agent,
16:29
Speaker 2: with is worth about four million dollars because it has.
16:32
Speaker 2: It's an acre with direct access to the beach. So
16:34
Speaker 2: here's the thing is. And again I'm not poopooing this
16:39
Speaker 2: property in and of itself, but I'm sure that the
16:44
Speaker 2: villagers of Pompeii had some really expensive land right before
16:49
Speaker 2: Mount Vesuvius launched an ash cloud down it and wiped
16:52
Speaker 2: the whole place out. And so land only has value
16:57
Speaker 2: if it can hold value and give it the uncertainty
17:00
Speaker 2: about storms and insurance costs and rebuilding and how often
17:03
Speaker 2: you might have to rebuild and what exactly you have
17:05
Speaker 2: to do. You can't just inherently be like, this land
17:09
Speaker 2: has value if you've been hit by three hurricanes in
17:12
Speaker 2: the last four years, you have to like look at
17:16
Speaker 2: it and be like, maybe it's actually not as valuable
17:19
Speaker 2: as I think, because if the structures keep getting destroyed
17:23
Speaker 2: in some way, shape or form, no one's going to
17:25
Speaker 2: want to pay those prices for the property, as attractive
17:29
Speaker 2: as the beach access might be. If you can only
17:33
Speaker 2: live in the house for one out of every five
17:35
Speaker 2: years because it keeps getting wrecked.
17:36
Speaker 4: The good news about something like this and some of
17:39
Speaker 4: these other areas as well, though you know, I don't
17:42
Speaker 4: actually know because the Journal article doesn't spell it out.
17:45
Speaker 4: Can you get a mortgage on a property like this?
17:47
Speaker 4: Can you buy flood insurance or a hurricane insurance on
17:51
Speaker 4: a property like this. I'm sure there's some insurance you
17:53
Speaker 4: can buy.
17:54
Speaker 2: But how again, how expensive is it?
17:56
Speaker 3: Then?
17:57
Speaker 4: Because if you can, if you can buy flood insurance
18:00
Speaker 4: on this property, my guess would be that all of
18:02
Speaker 4: us listening right now are subsidizing the cost of it
18:05
Speaker 4: through the government's run flood insurance.
18:08
Speaker 2: Program, which, by the way, seems stupid to me. Yeah,
18:11
Speaker 2: we've talked about this before.
18:12
Speaker 4: How basically everyone listening right now is subsidizing my seventeen
18:16
Speaker 4: hundred dollars a year flood insurance policy that should probably
18:19
Speaker 4: cost five to ten times more than it actually does.
18:21
Speaker 3: Welcome Michael, Thank you everybody.
18:23
Speaker 4: But that would be I think that would be the
18:26
Speaker 4: point here is if that is the case, that you
18:29
Speaker 4: can't ensure this type of thing, that's the beauty of
18:32
Speaker 4: free markets.
18:33
Speaker 3: We'll find exactly what this property is for.
18:35
Speaker 2: We'll know what it can go for.
18:36
Speaker 4: And can't get a mortgage, can't buy homeowners insurance, can't
18:39
Speaker 4: buy flood insurance, can't buy hurricane insurance.
18:42
Speaker 3: Then yeah, we'll get a real fair market value for it.
18:45
Speaker 4: The problem is in many parts of the country, like
18:49
Speaker 4: the beautiful hills of California outside of LA you can
18:52
Speaker 4: absolutely go buy a homeowner's insurance policy there when frankly
18:56
Speaker 4: maybe you shouldn't be able to.
18:58
Speaker 2: Not that you shouldn't be able to, but the costs
19:00
Speaker 2: should be way more because of how the insurance market
19:04
Speaker 2: should be structured instead of how it is. And so
19:08
Speaker 2: this is going to be fascinating to see how this
19:10
Speaker 2: stuff plays out in these high end airs, because again,
19:13
Speaker 2: it's it's one thing if you're an insurance you're dealing with, Okay,
19:16
Speaker 2: home was destroyed and the value was three hundred thousand. Great,
19:20
Speaker 2: Now you're dealing with like standalone claims for multiple millions,
19:23
Speaker 2: and you're like, how much is it going to? How
19:25
Speaker 2: much do I need in order to be comfortable with it?
19:27
Speaker 2: And will the state insurance board let me charge that much?
19:31
Speaker 2: These are some of the questions that we're going to
19:33
Speaker 2: get to quick break here. Trivia Answers next.
19:41
Speaker 1: Bringing the latest financial news straight to your radio. Every day.
19:46
Speaker 1: It's the Financial Exchange on the Financial Exchange Radio Network.
19:51
Speaker 1: Text US six one, seven, three, six, two thirteen eighty
19:55
Speaker 1: five with your comments and questions about today's show and
19:58
Speaker 1: let us know what you think about the story we
20:00
Speaker 1: are covering. This is the Financial Exchange Radio Network.
20:06
Speaker 5: Trivia question today was which animal did Saint Patrick allegedly
20:10
Speaker 5: banish from Ireland?
20:12
Speaker 3: It would be snakes.
20:13
Speaker 5: The popular legend of Saint Patrick banishing snakes from Ireland
20:17
Speaker 5: is a myth. The snakes likely never inhabited the island
20:21
Speaker 5: in the first place. Dan from Freeport, Maine is our
20:24
Speaker 5: winner today, taking home a brand new Financial Exchange Show
20:28
Speaker 5: t shirt. Congrats to Dan, and we played trivia every
20:31
Speaker 5: day here on the Financial Exchange See complete contest rules
20:35
Speaker 5: at Financial Exchange Show dot com.
20:37
Speaker 4: You know you say that, Tucker, but there's some pretty
20:39
Speaker 4: compelling evidence that there are currently no snakes in Ireland.
20:43
Speaker 3: So I literally just said that, I know what?
20:47
Speaker 4: What?
20:48
Speaker 3: Yeah, we got like half the equation here proven? Is
20:52
Speaker 3: this not on? I heard everything you said. Half the
20:56
Speaker 3: equations proven here.
20:57
Speaker 4: I think there's some compelling evidence that maybe it happened
21:00
Speaker 4: that what happened that he banished all the snake from
21:02
Speaker 4: my island?
21:03
Speaker 3: There's none there proved to me that there weren't snakes before.
21:05
Speaker 2: Got it? Got it?
21:08
Speaker 3: Okay?
21:08
Speaker 2: I'm glad we did that. The days of set and
21:11
Speaker 2: forget investing just ended for many Americans. That is the
21:16
Speaker 2: headline in the Wall Street Journal, and I'll read the
21:20
Speaker 2: subheader too, just because it provides context for my subsequent reaction.
21:26
Speaker 2: President Trump's economic policies are sending investors out of US
21:30
Speaker 2: stocks and into cash, bonds, gold, and European defense stocks. Yeah,
21:35
Speaker 2: like a freaking rotation has never happened before in the
21:37
Speaker 2: history of the world. What the heck are we talking
21:40
Speaker 2: about here? This is exactly why set it and forget it.
21:43
Speaker 2: Investing is a thing because you diversify amongst a bunch
21:46
Speaker 2: of different things since you don't actually know what's gonna.
21:49
Speaker 3: Be in favor.
21:50
Speaker 2: You don't know if it's gonna be US stocks, international stocks,
21:52
Speaker 2: corporate bonds, government bonds, commodities, real estate, all these different things.
21:57
Speaker 2: And so the idea behind set it and forget it
21:59
Speaker 2: investing not just buy the S and P five hundred
22:01
Speaker 2: because it always goes up and nothing else can do better. No,
22:04
Speaker 2: that's not what it means. It means diversify your portfolio properly,
22:08
Speaker 2: and you don't have to worry about chasing all these
22:10
Speaker 2: things in any given year. If you're not a professional
22:12
Speaker 2: investor and don't want to play that game.
22:14
Speaker 4: So let's instead talk about not setting it and forgetting it.
22:17
Speaker 4: Patent Price, I'm gonna just quote the journal set he
22:20
Speaker 4: expected geopolitical chaos in Trump's second term, back at when
22:23
Speaker 4: equities were still flying high. He sold all the stocks
22:26
Speaker 4: in his retirement accounts around the time of the presidential.
22:28
Speaker 3: Inauguration on January twentieth.
22:30
Speaker 4: It's quote, it's not like I have some fancy thesis
22:33
Speaker 4: and I think I know what's going to happen, said Price,
22:35
Speaker 4: a forty six year old musician and former political consultant
22:38
Speaker 4: in Richmond. I just don't think anybody knows what's going
22:41
Speaker 4: to happen. Then why'd you do it? Exactly? This completely
22:45
Speaker 4: contradicts your actions. And I think that's the important thing
22:49
Speaker 4: about set and forget. It's not just blindly throwing money
22:54
Speaker 4: out there. You do have to set it first, But
22:57
Speaker 4: so long as your plans on the set side of
23:01
Speaker 4: the equation haven't changed, then most of the times you
23:05
Speaker 4: probably shouldn't change the forget it side.
23:06
Speaker 3: Because what he later.
23:08
Speaker 4: Admits to is he has no idea how he's going
23:10
Speaker 4: to get back into equity markets when he's going to
23:12
Speaker 4: feel comfortable doing so, and what his thesis is going
23:15
Speaker 4: to be on that, And Chuck, how many people have
23:18
Speaker 4: you run into that followed this exact same doesn't look
23:23
Speaker 4: under Biden than Trump won than Obama, and I'm sure
23:27
Speaker 4: many many presidents beforehand, and that is always the common thing.
23:31
Speaker 4: And frankly, the fact that he almost nailed the top
23:34
Speaker 4: of this, he was about a month off from nailing
23:36
Speaker 4: the top. But that's probably the most dangerous thing about it,
23:38
Speaker 4: because a force that oh, yeah, I'm just really good
23:42
Speaker 4: at calling political tension, folks. This stuff is challenging. When
23:48
Speaker 4: you see the type of retreat from stocks that we've
23:50
Speaker 4: seen over the last few weeks, I get that it
23:52
Speaker 4: can become nerve wracking for investors, and especially when it
23:56
Speaker 4: happens at a time when you happen to disagree with
23:59
Speaker 4: the political movement that's occurring. That's not everybody, but that
24:03
Speaker 4: is a very common thing that I keep on seeing,
24:07
Speaker 4: is allowing one's personal politics to feed into how they
24:12
Speaker 4: are going to invest their own money. If you're worried
24:15
Speaker 4: that you're allowing that to happen, maybe it's the right
24:18
Speaker 4: thing to do.
24:18
Speaker 3: Maybe it's the wrong thing to do, but always ask
24:20
Speaker 3: your question.
24:21
Speaker 4: Ask yourself, Hey, what has changed since I put in this?
24:26
Speaker 4: Set it and forget it? Plan about my life personally
24:30
Speaker 4: before going down the path of making a bunch of changes.
24:33
Speaker 4: If you are following this through and trying to figure out, hey,
24:37
Speaker 4: where do I go next with that retirement bucket or
24:40
Speaker 4: that non retirement bucket, or this new money that I've
24:42
Speaker 4: inherited or that I have received as a you know,
24:46
Speaker 4: as a buy at a stock for my employer, whatever
24:49
Speaker 4: it might be. It's much more challenging to deal with
24:52
Speaker 4: that next sum of money that you are now sitting
24:54
Speaker 4: on than it was setting up, say a retirement plan investment.
24:59
Speaker 4: Give the folks at Armstrong Advisory Group a call. We
25:02
Speaker 4: work with our clients to navigate volatility day in and
25:05
Speaker 4: day out, and we'd be happy to assess that alongside
25:08
Speaker 4: you and give you our view on where things go
25:10
Speaker 4: next and how to adapt to it with your own
25:13
Speaker 4: personal portfolio. The number at Armstrong Advisory Group is eight
25:15
Speaker 4: hundred three nine three four zero zero one. Book free
25:20
Speaker 4: consultations all across New England. Folks will sit down with
25:22
Speaker 4: you in person and explain what it is that we
25:24
Speaker 4: do here at Armstrong that number again eight hundred three
25:28
Speaker 4: nine three four zero zero one.
25:30
Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
25:33
Speaker 1: registered investment advisor. Nothing in the ad or in any
25:35
Speaker 1: Armstrong guide a specific financial, legal, or tax advice. Consult
25:39
Speaker 1: your own financial tax into state planning advisors before making
25:41
Speaker 1: any investment decisions. Armstrong may contact you to offer investment
25:44
Speaker 1: advisory services.
25:46
Speaker 2: Also from the Wall Street Journal, It's not a great
25:50
Speaker 2: time to be a saver or borrower. Well, I guess
25:52
Speaker 2: we better just call it a day and give up unsaved. Man.
25:58
Speaker 4: If this were the case, reset it. When banks not exist,
26:03
Speaker 4: I mean, what.
26:03
Speaker 3: Are we really doing here?
26:05
Speaker 4: So clearly somebody thinks it's a good time to be
26:07
Speaker 4: a saver or a borrower, because otherwise banks as we
26:11
Speaker 4: know them would not exist in any meaningful way, because
26:13
Speaker 4: that's all they do.
26:15
Speaker 2: So the point that they're making on this is that
26:17
Speaker 2: savings accounts, the rates that you're getting now are lower
26:20
Speaker 2: than a year.
26:20
Speaker 3: Ago, yes, okay.
26:22
Speaker 2: And mortgage rates that you're getting now are you know,
26:26
Speaker 2: higher than three, four, five years ago?
26:29
Speaker 3: Okay?
26:29
Speaker 4: Raise your hand if you're happier with the rate on
26:31
Speaker 4: your savings account today, than you were the entire twenty
26:34
Speaker 4: ten decade. I'm holding my hand up. I'm pretty I'm
26:38
Speaker 4: pretty content with them even where they are now.
26:40
Speaker 2: Right Ultimately, if people decided, hey, it's a bad time
26:43
Speaker 2: to be a saver, they're gonna pull their money out
26:45
Speaker 2: of banks put it somewhere else, and banks in response,
26:48
Speaker 2: trying to get more money into, you know, so they
26:51
Speaker 2: can lend it out, would say, oh, we need to
26:53
Speaker 2: offer more you know, higher rates, and rates would go up.
26:56
Speaker 2: So I look, I under stand, you know, hey, mortgage
27:02
Speaker 2: rates are not necessarily ideal right now, but.
27:04
Speaker 3: I it can't be both.
27:07
Speaker 2: Well, I here's what I'm just gonna talk about mortgage
27:09
Speaker 2: rates for a second because I have a little bit
27:11
Speaker 2: of a secret that I that I want to share.
27:15
Speaker 2: They're probably not going back down to two and a
27:17
Speaker 2: half percent.
27:18
Speaker 3: Oh no, really, no, that might be the outlier.
27:20
Speaker 5: Not the norm.
27:21
Speaker 2: Yeah, So I just think that we have to you know, understand, hey,
27:28
Speaker 2: mortgage rates, probably you're not going to be in that
27:31
Speaker 2: three percent range again, unless something really bad happens in
27:34
Speaker 2: the economy, in which case you might really not be
27:37
Speaker 2: in the market for a mortgage then.
27:38
Speaker 4: But the good news is that money market savings account
27:41
Speaker 4: that you have is probably not going back down to
27:43
Speaker 4: zero point one percent like it was for a bunch
27:46
Speaker 4: of the twenty tens.
27:47
Speaker 2: Unless something really bad happens, right, and then it could.
27:51
Speaker 2: Like again, historically, we do see those kinds of moves
27:54
Speaker 2: when you know you at three hundred to four hundred
27:57
Speaker 2: basis point move and money market yields is not on
27:59
Speaker 2: a heard of if you're going into a recession. So yeah,
28:04
Speaker 2: I just I don't know. It seems like we're always complaining.
28:10
Speaker 2: There are two things that seems like we're always complaining about.
28:12
Speaker 2: The first is the labor market's either too loose or
28:15
Speaker 2: too tight. It's never just right, like it can never
28:17
Speaker 2: be just fine. It's first it was, oh, like all
28:20
Speaker 2: the quiet quitting and Walmart's paying its truck drivers one
28:23
Speaker 2: hundred and fifty thousand dollars a year, and you know,
28:25
Speaker 2: how can we ever do this? And now it's hey,
28:28
Speaker 2: the youth unemployment rate's too high and again, but all
28:32
Speaker 2: these things can be valid, but sometimes we just have
28:34
Speaker 2: to accept that it's not going to be perfect. And
28:37
Speaker 2: it seems like we are always complaining about interest rates
28:42
Speaker 2: in that either high interest rates are causing inequality or
28:46
Speaker 2: low interest rates are causing inequality, and they can't all
28:49
Speaker 2: cause inequality because otherwise they're not actually the cause of it,
28:52
Speaker 2: and it just exists alongside them.
28:54
Speaker 4: Yeah, I feel pretty strongly that Elizabeth Warren has argued
28:57
Speaker 4: both sides of that coin.
28:59
Speaker 2: So I don't know what else to say on this,
29:03
Speaker 2: but it has to be. Here's my view. For savers,
29:09
Speaker 2: it's a fine time, not the best, not the worst.
29:13
Speaker 2: For borrowers, it's less than ideal. It's probably like the
29:17
Speaker 2: thirtieth percentile of idealogy whatever of idealism.
29:23
Speaker 3: Sure it's third.
29:25
Speaker 2: The borrowing cost is thirty percent ideal. You know they've
29:30
Speaker 2: been better, is what I'm trying to convey. But it's not.
29:33
Speaker 2: Listen you want you want bad borrowing costs. Let me
29:36
Speaker 2: introduce you to nineteen eighty when you can get a
29:37
Speaker 2: mortgage for the low low rate of twenty percent a year.
29:42
Speaker 2: We got lulled into a false sense of security thinking
29:45
Speaker 2: that interest rates, you know, on mortgages worth three and
29:47
Speaker 2: four percent, and that's just not where they historically land
29:51
Speaker 2: unless borrowing costs for the US are one or two percent,
29:54
Speaker 2: And that only happened in the decade after the worst
29:56
Speaker 2: financial crisis since the Great Depression, right, I Rust, Let's
30:02
Speaker 2: take a quick break here. When we come back, we'll
30:04
Speaker 2: do a little bit of stack Roulette.
30:06
Speaker 1: Find daily interviews and full shows of the Financial Exchange
30:09
Speaker 1: on our YouTube page. Like us on YouTube and get
30:12
Speaker 1: caught up on anything and everything you might have missed.
30:15
Speaker 1: This is the Financial Exchange Radio Network. The Financial Exchange
30:19
Speaker 1: Show podcast drops every day on Apple, Spotify, and iHeartRadio.
30:23
Speaker 1: Hit that subscribe button then leave us a five star review.
30:27
Speaker 1: You're listening to the Financial Exchange Radio Network.
30:35
Speaker 2: Mike, What do you got for me for stack Roulett?
30:38
Speaker 4: I've got gen Z taking micro retirements. The oldest gen
30:42
Speaker 4: Zer is twenty eight years old. And we just got
30:45
Speaker 4: done saying like, hey, these people actually do have a
30:48
Speaker 4: pretty tough labor market. I Am going to take a
30:52
Speaker 4: turn on this one though, and say that if you
30:54
Speaker 4: have only been in the labor force for like six
30:56
Speaker 4: years and have been there now long enough to want out, well, okay,
31:01
Speaker 4: we've got another thing to talk about here. If somebody
31:04
Speaker 4: wants to quit work and go travel the world, far
31:07
Speaker 4: be it from me to say that you shouldn't or
31:09
Speaker 4: can't do that. I would say that your young twenties
31:12
Speaker 4: is a great time.
31:13
Speaker 3: To do that.
31:13
Speaker 4: But a few things that think about as you're engaging
31:16
Speaker 4: on that journey, none of which young people typically think about,
31:19
Speaker 4: but like, how are you gonna get health insurance? Assume
31:24
Speaker 4: you break your leg on a trip overseas, which does happen,
31:27
Speaker 4: which happens, you know, pretty reasonably frequently. The picture here
31:31
Speaker 4: is some guy trekking across somewhere that looks absolutely beautiful.
31:36
Speaker 4: Where are you going to pay that bill from? And
31:39
Speaker 4: how are you going to escape falling into a mountain
31:42
Speaker 4: of debt down the road. There are actually more and
31:46
Speaker 4: more companies that I'm hearing of providing something like a
31:49
Speaker 4: sabbatical to employees. Charles Schwab is a big, very large
31:52
Speaker 4: company that does this every five years.
31:54
Speaker 3: I think you get something like three months.
31:55
Speaker 4: Off of work, because sure they see it as a
31:57
Speaker 4: massive benefit that they can offer people. But I would
32:00
Speaker 4: just say to those younger workers in general that yes,
32:04
Speaker 4: it may be an excellent time for you to take
32:05
Speaker 4: a little bit of time off of work. You might
32:08
Speaker 4: not have the responsibilities of children or a mortgage or
32:11
Speaker 4: any of those things yet, but do a little bit
32:13
Speaker 4: of planning and make sure you understand what you're going
32:15
Speaker 4: to do if you do fall into hot water, because
32:17
Speaker 4: that type of thing can happen. I know none of
32:21
Speaker 4: us think about getting injured or dying when we're in
32:24
Speaker 4: our twenties, but those are the things that come to
32:27
Speaker 4: mind for me, Like forget about the career sustainability of
32:30
Speaker 4: taking a few months off work, plan for those bad
32:33
Speaker 4: outcomes and make sure you're covered.
32:36
Speaker 2: I want to reference one other thing that you said,
32:38
Speaker 2: just because I think it's relevant in that Hey, a
32:41
Speaker 2: lot of people in their twenties, like they don't have
32:43
Speaker 2: kids or families at that point, and I think, like,
32:48
Speaker 2: in hindsight, looking back at my twenties, I think I
32:56
Speaker 2: wish that I had done one of two things more fully.
33:00
Speaker 2: And these are just gonna sound a little bit weird,
33:03
Speaker 2: but I wish I either spent way less time working
33:07
Speaker 2: and more time just out partying and hanging out and
33:09
Speaker 2: having like a great time hell yeah, or I wish
33:13
Speaker 2: I spent way more time in the office. Either I
33:16
Speaker 2: wish I had committed to either loafing or working hard
33:19
Speaker 2: more thoroughly than I did, because I think I tried
33:22
Speaker 2: to live like this idea of work life balance and.
33:26
Speaker 3: You're twenty three years old. It's not important, right, it's.
33:29
Speaker 2: Kind of a mistake then, quite honestly, I'm with you,
33:32
Speaker 2: it's kind of a mistake.
33:33
Speaker 4: Then either be you know, a nine to fiver or
33:38
Speaker 4: be like I'm going to take the evenings to study
33:42
Speaker 4: for my master's and commit to that beginning to.
33:44
Speaker 2: Get it done then, because once you have kids, it's
33:46
Speaker 2: hard like either like bust your ass to get like
33:51
Speaker 2: all that work done, or just do the minimum and
33:55
Speaker 2: have as much fun as you can. Like I'm not
33:57
Speaker 2: saying like, don't do your job. I'm saying, do what's
33:59
Speaker 2: required you and like have as much fun as you
34:03
Speaker 2: can because two things, hey, like you won't have the
34:06
Speaker 2: time to later on and be your body won't be
34:08
Speaker 2: able to handle it later on either, and the future
34:11
Speaker 2: you will be like, yes, I'm glad I did that.
34:13
Speaker 2: Then having said that, like everything works out like your
34:16
Speaker 2: life is what it is anyways. But I don't know,
34:18
Speaker 2: Sorry I got too philosophical there. Let's see what do
34:22
Speaker 2: I want to do here next? Yeah, this is actually
34:25
Speaker 2: a really good one. Your kid there's a good chance
34:28
Speaker 2: your kid uses AI to cheat. And here's where we're
34:32
Speaker 2: heading on this is you know how schools in the
34:37
Speaker 2: last fifteen years have moved to like having so much technology,
34:42
Speaker 2: Like all your kids work as homework assignments are online,
34:45
Speaker 2: and you know there's tablets and technology and this and that,
34:48
Speaker 2: like that's where everything's gone.
34:49
Speaker 3: First grade classes all had iPads.
34:51
Speaker 5: But my kidden is in kindergarten and he came home
34:54
Speaker 5: talking to me about I think it was chromebook.
34:55
Speaker 4: I'm like, what, Yeah, yeah, every class has those things
34:58
Speaker 4: in there.
34:59
Speaker 2: Now guess where heading opposite direction? Closed book handwritten tests.
35:04
Speaker 3: Yeah.
35:05
Speaker 2: And and quite honestly, okay, a couple things on this.
35:09
Speaker 2: On one level, you say this is good because the
35:12
Speaker 2: problem with AI, in my opinion, is it robs from
35:15
Speaker 2: us the most important skill that we need to pick
35:17
Speaker 2: up during school, which is the ability to think critically,
35:19
Speaker 2: because if you can't think critically, then you kind of lose.
35:24
Speaker 3: Yeah.
35:25
Speaker 4: I do think about like university level courses and like
35:28
Speaker 4: there were no closed book handwritten tests like everything.
35:32
Speaker 3: Oh, we had them.
35:33
Speaker 4: I had a few of them, but again, by and large,
35:35
Speaker 4: most of my courses were, you know, write five papers
35:38
Speaker 4: on this subject, and it wasn't a whole lot of
35:42
Speaker 4: sit down with your scantron during office and.
35:44
Speaker 2: The closed book like the idea behind it is not
35:47
Speaker 2: that like you don't have resources in the real world,
35:49
Speaker 2: but much more, Hey, you need to prove that you
35:51
Speaker 2: can actually think about something, and I want you to
35:53
Speaker 2: be able to like I need you to show me
35:55
Speaker 2: you can do that you're not just using AI. But
35:57
Speaker 2: here's the other piece. I'm also a big believe in
36:00
Speaker 2: you need to couple that with exams that allow for
36:05
Speaker 2: the use of AI in the appropriate, you know, manner,
36:09
Speaker 2: because if you don't allow people to learn the tools
36:13
Speaker 2: of the trade that are going to be available to them,
36:15
Speaker 2: you're disadvantaging them that way as well. This would be
36:18
Speaker 2: like if you were going to trade school. And again,
36:22
Speaker 2: I haven't gone to trade school, so like if any
36:23
Speaker 2: carpenters are like Chuck, you're the dumbest person ever, I
36:26
Speaker 2: get it, Like fine, but this would be like going
36:28
Speaker 2: to trade school and being told you can't use power tools.
36:31
Speaker 2: You have to just use you know, the handsaw back
36:35
Speaker 2: and forth. No, like that that's dumb too, Like you
36:38
Speaker 2: don't just you know, you have to be able to
36:41
Speaker 2: balance all of this because ultimately, the ability to think
36:45
Speaker 2: critically while using AI is what you're trying to get to,
36:50
Speaker 2: because then you can use the power tools and figure
36:52
Speaker 2: out if it's actually doing what you want to do.
36:55
Speaker 2: That's like the full package there, that's the five tool player.
36:58
Speaker 4: It is a bit different than this, but it's not
37:01
Speaker 4: honestly all that different from when you know, in elementary school,
37:04
Speaker 4: the Internet was just coming up, and you did have happen.
37:07
Speaker 2: The internet was hamster dance dot com like it was.
37:10
Speaker 4: But I mean, do you remember a kid putting together
37:13
Speaker 4: a presentation where they had literally copied and pasted from
37:16
Speaker 4: an Internet site and it was abundantly clear that that happened.
37:19
Speaker 3: That's the updated version of what kids you're doing on
37:21
Speaker 3: AI tests. Now here's the thing.
37:23
Speaker 2: I have enough teachers in my family that like the
37:26
Speaker 2: amount of times I've heard about someone just like referencing
37:29
Speaker 2: Wikipedia as the source for something or just copying and
37:31
Speaker 2: pasting a Wikipedia page like it's there's there's a laundry
37:34
Speaker 2: list there. This is a little bit more insidious, I think,
37:38
Speaker 2: in that it's harder to if you don't know the
37:42
Speaker 2: student to begin with, It's harder to tell like where
37:44
Speaker 2: the student's own work stops and.
37:46
Speaker 3: The AI begins.
37:47
Speaker 2: And that, I think is that the challenge on this.
37:51
Speaker 2: But ultimately This is gonna be something that we are
37:53
Speaker 2: going to figure out because we have to, like there's
37:58
Speaker 2: there's no way around it. Otherwise we're gonna become dumber.
38:02
Speaker 2: Which there was a big piece in the Financial Times
38:04
Speaker 2: last week about are we becoming dumber? And the answer
38:06
Speaker 2: is yeah, maybe, and it's probably because of the smartphones
38:11
Speaker 2: which have made us dumber. Let's take a quick break
38:16
Speaker 2: for the rest of the day. Back at it tomorrow.
38:17
Speaker 2: We've got housing permits, I'm sorry, building permits and housing starts. Tomorrow.
38:21
Speaker 2: We'll fill you in on that and more on the
38:23
Speaker 2: Financial Exchange