Latest / The Jon Sanchez Show / Stocks Are Celebrating-But Bonds Are Screaming
Transcript
- Jon G. Sanchez: Good Friday afternoon to you. Welcome to the John Sanchez Show on New Stock 780KOH. It's a pleasure to be with you on this Friday and a pleasure to have this crazy week of Wall Street behind us. Another volatile week, but that's what we're used to, right? Thank you so much for joining me. I hope you have a great weekend. Let me tell you what I have on tap for you this afternoon. You know, stocks are celebrating, but bonds are screaming. Think about that for a second. Here we are, near record highs on the stock market. But here we are also with a 10-year treasury sitting well above five percent. As you just heard a moment ago, energy crisis in the country, you know, i in regards to people's opinion, right? Here we are, oil over ninety dollars a barrel. And let's not forget the jobs data that we received a few weeks ago stating, I think it was what, last week? Matter of fact, not too long ago, that America only created twenty nine thousand jobs last month. So today I thought it would be a good time for a Friday. To explain these conflicting signals and what they mean most importantly, and hence why you tune in each and every day, what they mean for your investments, your retirement, and your financial future. So I'll be getting to that in just a moment. But first, I've got to get something off my back. I really do. And I don't know, I I debated, I had a little little argument with myself, to be honest with you. And I'm like, do I bring this up on the show or not? And I thought, you know what? It's Friday. So yeah, I'm gonna bring it up because it's bugging the heck out me. And if it's bugging me, I'm just wondering, you know, if maybe it is bothering the rest of you. And some of you may not have even heard about this today. So I want to get this going and then we'll we'll tackle the stock market and then get to our topic. So we all know that there is a diesel crisis, right? We've discussed this many times on the show. There's this diesel crisis going on in the country. For those of us that have to buy diesel, we're paying over a hundred percent more than where we were not long ago. You know, I was gonna say a year ago, not even that long ago. Well, today the Trump administration Signed a deal. And President Trump was very proud of this deal as he announced it on True Social. And this deal was that Russian President Vladimir Putin would immediately, that's a quote, release hundreds of thousands of tons of diesel fuel onto the global market to bring prices down, of course. Again, the president made the announcement on True Social and said the action would help bring diesel prices down. Here's what the Treasury Department said. Quote, today, at President Trump's direction, the Office of Foreign Assets and Control, better known as OFAC, is immediately issuing a temporary general license to allow the supply of Russian diesel to the global market. Document posted on the Treasury's website said that the sale delivery, offloading, and importation, including importation into the United States of diesel fuel of Russian Federation origin, are authorized through twelve one AM Eastern Daylight Time, April seventh, two thousand seven. Now I want you to absorb this just for a second, because this is a real dilemma. And I did some research that I share with you in just a moment. I don't think there's one of you that would agree with what Vladimir Putin is doing to Ukraine and their people. But now we come to a moral slash economic dilemma. The president's trying to bring diesel prices down globally, obviously, we're part of that global side of it. But buying it and putting profits into the country that is killing hundreds of thousands of innocent lives. That's the dilemma that I have. Since the illegal invasion of Ukraine, wide-ranging sanctions have been applied to Russia, right? You've heard about all of them. In order to get the diesel fuel moved, the Treasury Department simultaneously announced today that it would be easing the sanctions on Russia through April 7th. So not only are we going to be putting probably billions of dollars of profit into their pocket from the diesel purchases, but also by lifting the sanctions. In a statement today by Vladimir Putin, he said that he had informed President Trump of Russia's quote readiness to supply oil and petroleum products to the U.S. and global markets. Putin did not offer any specifics, however, such as when a potential release would begin or how much fuel it would entail. Because if you notice, I didn't say how many barrels, I said tons. Never seen diesel measured in tons. So I thought that was interesting. Since the start of the Iranian war in February, the price of diesel fuel has soared about seventy percent, and many economists are warning that the price hikes will have wide ranging inflationary effects on the global economy. So I'm thinking, you know, we heard the announcement that I've been very controversial about earlier in the week when the president said, you know, you know semi trucks, etcetera, you can start using red diesel. And I I'm not gonna go into that whole scenario there. And now we're putting billions of dollars of profit into the Russian economy and ra in raising sanctions or or releasing sanctions also. After multiple Ukrainian attacks on Russian energy assets earlier this month, the Kremlin in July imposed a diesel fuel export ban. It has since been extended through the end of this month. Russian Deputy Prime Minister Alexander Novak told state news agency TAS that his country would immediately begin lifting its export ban as a result of Trump's Trump and Putin's agreement today. Trump has publicly pleaded with Ukrainian president. Zelensky to stop bombing Russian diesel refinery plants. Trump said the following The problem I have with Ukraine and Russia is that, you know, a lot of the diesel comes from Russia. And the Russian plants are being hit by Ukraine. He says, and I've asked President Zelensky not to hit the diesel plants. That's what's driving it up. Referring to the cost of diesel. Ukraine, he added, has quote, got to stop. On September 14th, Trump claimed that Zelensky and Putin Had agreed to stop targeting energy infrastructure. But Zelensky then denied that he ever agreed to stop targeting Russian energy assets, telling CBS News he would only stop striking oil and gas targets if Russia agreed to the same terms. But the Kremlin, it's increased its targeting of Ukrainian cities and critical infrastructure throughout the summer and now into the fall. Just hours before the president's announcement today, Zelensky welcomed a delegation of U.S. senators to the Presidential Palace in Kiev. Quote Zelensky. We can only protect ourselves from the terror by working together. And we discussed how the United States can help save lives, Zelensky said on social media. This is a matter of political will, and it's now important to show leadership and fully fully cut off the financial flows sustaining Russia's war machine. Zelensky described Trump's move to ease the sanctions on Diesel today as quote, an obvious weakness. He says it plays into Russia's hands, allowing it to kill more, wage war for longer, have even less respect for America, and inflict even greater losses and damages in the world. Now, if you're wondering, this isn't the first time that the president's tried to use US sanction relief for Russia to help slow rising oil prices. The Treasury Department issued a series of thirty day sanction waivers for Russian oil on the water this spring, but they expired and largely didn't impact the trajectory of oil and gas prices. Now on this news today, diesel futures fell four percent in the wake of Trump's announcement that they remained higher by more than one hundred and ten percent since the start of this year. Oil prices today, they really didn't react. We lost forty five cents on oil to ninety one dollars and ninety two cents. And finally, Trump's announcement also came just as Ukrainian negotiators departed for the US for a new round of talks aimed at bringing an end to the war with Russia. Gee, guess who the special envoy is? The same ones that were sent to solve the w the Iranian war? Special envoy Steve Woodkov and President Trump's son in law Jared Kushner. They've been expected to lead the discussions. And it was unclear late today whether they would continue as planned in light of the latest sanction waiver. So again, I I don't know if this sits right with you or wrong. I I tell you what would be fascinating. If I had a room full of independent truck owners as well as trucking company executives. And say, all right, this is a this is a tough one. I mean, I'll admit, that's why I'm bringing it up. Would you be willing to save? I mean, who knows if if diesel prices come down on this news or not, would you be willing to take this chance to put billions of dollars of profit to pay, I'm guessing, 10, 15, maybe 20 cents a gallon less? So would you give. Give up paying higher prices and money not going in Russia's pocket. Or would you rather pay a few cents less and put billions of dollars of profit into Russia's pocket? That I think is the real moral dilemma that we face of this big announcement. I I was shocked today. I I mean I don't know why I was shocked, because every day I wake up and I think to myself, I just I can't believe this is being done in our country, that's being done in our country, this deal's being made, that deal's being made. I I I I don't know. I don't know if I'm just getting cynical the older I get or I'm getting wiser or whatever it is. But this year I it has hit me like a ton of bricks. And then when I saw this news today, I'm like, here we go again. Here we go again. So think about that. You know, again, if you want to discuss it, give me a call at eight five two talk. It's Friday. I'll open up the phone lines for you. and let me know your opinion on that. But it's it's pretty fascinating. We'll see what happens come Monday, Tuesday, Wednesday when, you know, the big news wears off and And we will see. Again, we don't know. Even Putin said, you know, really no agreement's been made as to when and so on and so forth. But it's a long agreement. I mean, all the way through April of 2027. So we will see. All right. When we come back, let me get down to the stock market side of things and then we'll move into our topic. Stocks are celebrating, but bonds are screaming. Welcome back to the John Sanchez Show on Newstock 780 KOH. Happy Friday to all of you. All right, here's how we finished up. A good strong day today. 423 gain on the Dow, 0.83% to a close of 51,654. NASDAQ rose 173.64%. Finished the day at 27,366. And the SP higher by 46 points, 0.4 59% to a level of 7,811. Oil for the day lost 45 cents to 9192 a barrel. Gold, a $60.70 gain to $4,216.20. And up one basis point is all on the 10 year treasury. Knows how good the market did today with the bond market not moving. Five point two four percent was our closing level of the tenure, and it was down four basis points for the week. And as a reminder, the bond market, not the stock market, but the bond market will be closed on Monday for holiday. All right. we're gonna jump on the phone lines right and talk to Joni. again, if you just missed it, I was talking about the deal that the president announced today with Russia. we're gonna buy a whole bunch of oil for him. We're lifting sanctions, etc. Not oil, but diesel. And so let's see what Joni has to say, if she agrees with this or not. Joni, welcome to the John Sanchez show. How you doing? My pleasure. My pleasure. Mm-hmm. That's right. Right, right. Mm-hmm. Mm-hmm. Joni, you gave me goosebumps. You you you gave me goosebumps, you really did. I I'm gonna I'm gonna I'm gonna add a little insult to injury here from what I said earlier, Joni. And it and you know, when I said the the the the amount of diesel that we're gonna be purchasing from Russia, I as I said it was you know listed in in tons. So I did a a little bit of calculation. And this is this is gonna make you, as it did me, a little bit even sicker that we did this deal. So this deal that the president announced today is going to equate to about 13.5 million barrels initially. Okay. So 13.5 million barrels. But Joni, I did some math. The average consumption of diesel here in the US, 75% of which is by the transportation industry. We consume four million barrels or yeah, four million barrels of diesel. Excuse me, four million, yeah, gallons of diesel a day. Okay, here in the US. So if I take this initial thirteen point five million barrels and divide it and do all the math, this equates, this initial release by Russia, this equates to about three point three seven days of diesel that we're buying from them. So nothing. Kind of like the last announcement about about diesel, right? It's a drop in the bucket. But to your point, which is exactly the way that I feel, we're feeding via a whole bunch of money and release of Russian sanctions billions of dollars of profit to Vladimir Putin in exchange for three point three seven days worth of diesel in this country. That's I think the way we we have to look at it. Isn't that sickening? It it's Yes, yes, yes. I'm with you, my dear. Thank you, honey. I appreciate your phone call and your your candor and honesty on that. Glad we're we're the same on that. Yeah, if you want to talk about it, folks, take care of Joni. If you want to talk about it, 852 talk again. It's I I couldn't I could not agree more with the way Joni feels. It's it's it's a human moral thing. And you know, again, back to my dilemma whether I was gonna talk about this or not. I'll I'll I'll share with you another kind of personal thought I had, and that is well, look at we, me, you. The entire country. We do, we have a we buy a lot of products that puts, you know, billions or trillions of dollars in China's pockets. You know, communist country, they don't have a real value for human life, so on and so forth. And I'm like, so is it worthwhile to bring this up about Russia, you know, giving us their or we're buying Russia's oil and putting the profits in their pocket? And what hit me was, you know what? China's not out there, well, and I know this is a whole nother argument, killing millions and millions of people, you know, just to just to grab some land. So I I know that may have come to the mind of of some of you saying, well, look at they're both communist countries and they both kill a lot of people for no reason and you know, got some pretty nasty dictators that run their countries and so on and so forth. But yeah, I think I think we could definitely draw some distinction there. But boy, boy, yeah, it's just this did not sit well with me today. So thank you again, Joni. Appreciate your phone call. Eight five two talk one eight hundred five six four KKOH if you want to join the conversation. All right, let's sneak in a couple of movers today that happened. So let's talk about SpaceX for just a moment. $2 gain on the stock, one and a quarter percent, finished the day at 162.57. an organization, name escapes me as Grain Something, decided to sell a whole bunch of spectrum rights, licenses, etc., to SpaceX. And this is a bunch of of Spectrum. It's a big portfolio. it's grain management. Now it came to me. Grain management. so now what this is gonna do, this is going to allow SpaceX to generate or excuse me, to to really expand into terrestrial wireless services, right? We've heard rumors and maybe it's already out there. I just don't know about it, but I don't think so. Elon Musk wants to get into the cell business, right? He's got the satellites, why not get into the cell business? Makes perfect sense, but you need the the the spectrum licenses to do that. Well, evidently he just, like I said, just bought a whole bunch of licenses. So made the stock go up a little bit, but was interesting. We saw pressure, the opposite side, T-Mobile, ATT, etc. T-Mobile today plunged 13.27%, right? This is competition for T-Mobile, $22.73 loss to $148.58. ATT down $2.42, 9.85% loss at $22.17 a share. Verizon was under pressure, et cetera. The other beneficiary of this announcement were the cell towers, right? The tower infrastructures. Crown Castle, I picked that one out, shot up $15, or excuse me, $15.6%, $10.75 rise to $76.64. Humana was a big performer today at $43.91, 11.34% to $431.03. Looks like they're gonna be back in the good graces of the government regarding Medicare. The company regained their four-star status as a major Medicare Advantage contractor, and that restored their eligibility for a bunch of big old fat government bonuses. Moderna was another standout today up 28 bucks, 14.21%, to close at 225 after the New York Times reported that experimental cancer vaccines could receive fast track designation. Apple under a bit of pressure, speaking of foreign companies, they said that or the Nikkei, which is a Japanese report, said early this morning that some suppliers in Japan have been told by Apple to reduce their component production for the iPhone 1818 Pro. because demands is not there. And so that's what put pressure on Apple today again, three dollars and seventy-four cent loss to three thirty-six sixty-eight. All right, I think you're up to date. How do we set it on a year-to-date basis? Well, here we go. Dow's up seven and a half percent for the year, SP is up fourteen point one, Russell 2000 higher by 13.1, and the NASDAQ still are leader with a 17.7 percent gain. All right, when we come back, we're gonna get into our topic. Stocks are celebrating, but bonds are screaming. How do we have this diverging market? What does it mean for you and your money? I'll answer those questions for you when we come back. Back to the John Sanchez show on News Talk 780 KOH. Stocks are celebrating, but bonds are screaming is my topic. I'll wrap things up with here as we progress to the second half hour of the show. But in the meantime, let's give you a reminder of how we did today on the street. 423 gain on the Dow, 0.83%. NASDAQ rose 173.64%. ASMP 500, a higher by 46 points.59%. So are we sitting in one of the most I don't even know what word I want to use. I'll just use a slang word, crazy markets, crazy economy. And hence why I titled today's show, Stocks Are Celebrating, but Bonds Are Screaming. I could even say bonds are crying. And let's not forget, oil prices are boiling. in the labor market, it's kind of running out of gas, to be honest with you. Again, welcome to one of the strangest economic environments that I I've ever seen. Right. When we go through tough times in the economy, things go down, there's always a reason behind it. But as I've expressed many, many times on this program, this market is being held up by one thing and one thing only, in my opinion, and that is AI. And that's why when we see days where AI suffers for whatever the reason may be, whether it's chip stocks, memory stocks, so on and so forth, market goes down. It's important. The data's there. But that's not what we're talking about today. This week, the stock market, again, hit some record highs. Investors appeared very optimistic. Technology comps rose technology companies rose, except for was it yesterday when that news came out that open AI's revenue is you know gonna be quite a bit lighter than everybody anticipated. And then we saw everything sell off in AI yesterday. And then today another news source comes out and says, no, no, no, that story is wrong. Their revenue is just just fine. And then they rose today. But as we all know, AI continues attracting significant, significant amounts of capital. And corporate earnings, the real driver of the stock market, still pretty good. And by the way, we're going to be getting earnings season next week. So if you looked only, you know, you you just got dropped off of a of a spaceship and you just landed on Earth and you just you look at the stock market, you may say, you know what, the American economy is doing phenomenal, as the president said. It's doing amazing, it's beautiful. That's on one side of the street. If you look on the other side of the street, you have the bond market. Now let me tell you what the bond market is looking at. Not that AI is booming or this or that or corporate earnings are strong. Bond market doesn't care about that. What the bond market's looking at is the yield on the 10 year treasury. Like I said, five twenty four today. We hit what was it, five thirty six if I remember right? or yesterday, day before. We hit it this week. A twenty-two year high on the bond yield. Twenty two year high. So again, here we set at five twenty four. That yield, of course, the reason I bring it up so often, meaning the tenure, it influences mortgage rates, business loans, government borrowing costs, and the value that investors place on practically every financial asset in America. It's it's like talking about the SP 500 or or the Dow Jones Industrial Average. It's a benchmark. That's why I talk about it all the time. The tenure, the tenure, the tenure. Let's talk oil. We started the show talking about diesel and so on and so forth. Let's talk oil. So once again, We had a a week where we neared a hundred dollars a barrel. Luckily we finished the week at ninety one ninety two a barrel, down forty five cents on the day. That of course, as we all know, pushes our gasoline prices higher, our transportation costs higher, production cost higher, right? And then we have the labor market, something we didn't have to talk really all about this week, except for yesterday when we get the typical initial claims continuing claims. Well, let's go back to a week ago, last Friday. That's when we got the government report, the non farm payroll data. And it was about this time last Friday when I sat there and I shook my head and went, My God, terrible report, but the market rallied on it. Goldilocks. Because of the bond market. So remember, we only gained 29,000 jobs in September. 29,000. And that wasn't the only disappointing number. Remember, they give us, they always give us a revision for the previous two months. So for July and August, they revised that number, those numbers down significantly where the average monthly job growth for the previous 12 months is only 45,000 jobs. That's it. Now, optimistic investors say, John, you know, that's a pretty good thing. Because if you look at the unemployment rate of 4.2% and all the data that I shared with you last Friday, pretty much you can rule that anybody that wants a job has a job. Those that are unemployed, which you I think we're what the number did I give you, I think we were around six, seven million total on you know total people unemployed for various reasons. Those are people that just don't want to work. That's that side of it. Others are saying, no, that's not the case at all. Because AI's taking a lot of jobs and you know that whole argument. Okay, so we have the stock market, the bond market, the labor market, the oil market. But with all this, stock market still rallies. So the question is, and I want you to be thinking about is this how can all of these things Be happening at the same time. Well, to me, the answer begins with understanding that the stock market is not the economy. I want to repeat that. The stock market is not the economy. And many times it's easy to look at the stock market and use it as the barometer of the economy. But that's not the case. Now, why is that? Remember, stocks primarily measure what you as an investor believe that a publicly traded company will earn in the future. You hear me talk a lot about. You buy a stock based upon future cash flows, right? The bond market's just the opposite. Remember, the bond market drives the bus. The stock market's the passenger. Bond market measures things completely different than the stock market. It reflects expectation for inflation, for interest rates, government borrowing, government debt, and of course the value of money over time. So again, one's on one side of the street, meaning the stock market, the bond market sits on the other side. And they're looking at completely different things. And that's why I said stocks are celebrating and bonds are screaming. Stocks are voting on profits. Bonds are voting on the cost of money. And right now, These two major markets are delivering very, very different messages. You see, the stock market believes that large American companies, particularly tech and AI related, can continue growing their profits. And we'll find out again when we get our earnings season kicking off, like I said, next week. The bond market, however, is warning that inflation may remain stubborn, that the government must continue borrowing enormous amounts of money. Yeah, remember, we're over forty trillion dollars in debt. We're spending over a trillion dollars a year just in interest. In the bond market and investors in the bond market are demanding substantially more compensation to lend money for ten or thirty years. Remember yesterday I mentioned on the show and on Wednesday I mentioned it, there was a significant amount of concern. That's why we hit the twenty two year highs on both the 10 year and the the 30 year. There was significant amount of concerns when the government held its thirty billion dollar plus auction on Wednesday that there wasn't going to be strong demand, that investors in the bond market, you know, globally, of course, they inve globally, they invest in our US market, we're gonna demand a higher rate. And that's why ahead of that auction, which we got the results at 10 AM, by the traders. Plummeted the bond prices, which of course did the opposite effect to the yields, drove it through, you know, to 22 year highs. But luckily, the buyers came in, demand was strong, and we saw yields come down. And then the same thing, very similar happened yesterday with the 30 year government. But that's the fear of the bond traders. Like, at what point are global investors that put their money in the US bond market, at what point are they going to want more? But here's the easy answer. I'm gonna kind of chicken out on you here. Both the bond market and the stock market can be correct. But I'm gonna put a little caveat, at least temporarily. I'll tell you what I mean when I come back. Back to the John Sanchez Show of New Stock 780K, which we're going to continue our discussion. Stocks are celebrating, but bonds are screaming. So here's the question. How can stocks rally on bad news? Right? This is kind of an apparent contradiction. Well, here's how. Weak employment would, of course, normally, and I underline the word normally, be interpreted as bad news for the economy as well as corporate earnings, right? The driving force behind the stock market. But we're in a phase right now where investors may believe it reduces the likelihood of what? An additional Federal Reserve rate increase. That was one of the big dilemmas this week. And starting last week with the big miss on the non farm payroll numbers and some inflationary data this week and a few other factors that said, hey, you know what? That likelihood of a Fed increase this month really started to diminish. But it comes down to that famous Wall Street saying. Bad economic news becomes good market news. Bad news is good news. Good news is bad news is the other saying I like to use. So remember, the bond market and the stock market can play can trade on completely different expectations in reality. Investors may have feared an even worse employment number. Weak job numbers reduce the pressure on the Fed to raise rates again. Lower expected future rates can increase stock market valuations. Large companies may continue producing strong profits besides or despite broader economic weakness. The market looks forward. Economic reports are rear looking. One week report doesn't automatically mean a recession. It doesn't mean the Fed's gonna move. And unemployment rates again remains at four point two percent, but the trend in the job creation is clearly weakening. More confusion, right? But what is the bond market warning us about? Well, when the 10-year treasury yield rises, investors are demanding greater compensation, like we experienced this week at the $30 billion plus 10-year government bond auction. Why do they want greater compensation, meaning higher yield? Because they fear inflation is rising. Future Fed Reserve policy, government borrowing, the risk of locking up the money for 10 years if it's a 10-year no a government bond. Uncertainty about the future purchasing power of the dollar, all of these things. But why does this current rate that we hit, you know, today 5.24, but this 5.3635, wherever we hit this week, that that 22 year high, why does that matter? Because that tenure is again the bellwether. Mortgage companies not solely make their rate decisions based upon the tenure, but it's one of their major factors. So as we discuss daily on this program, tenure has a big influence on mortgage rates. Corporate borrowing, same thing. It looks at the tenure. Commercial real estate loans. Most commercial real estate loans are 10-year notes with a with a balloon. Auto and consumer credit, same situation. Something that people don't talk enough about. Stock valuations. Those valuations, if you look at the mathematical formula of a stock valuation, it includes what's going on in bond yields. Federal interest expense. Like I said, we're spending a trillion dollars a year now just to pay our government debt. The attractiveness of dividend stocks and of course retirement income strategies. But the other point I want to squeeze in here real quickly is, and I I said this, I think it was last week. I want to bring it up again today. You never know where the tipping point is. What I mean by the tipping point is where investors will say, if I can get X percent yield, guaranteed yield, right? There's not too many things you can say guaranteed, but people say the government, you know, has never defaulted on the on any bond interest payments. So they will use the term guaranteed. Why the Treasury investments are considered risk-free investments. But the tipping point is because of all the guarantees and no risk and so on and so forth, investors will go, you know what? If I can make a guaranteed whatever, five and a quarter percent, giving the government my money for 10 years. And yeah, we've been on a great run in the stock market, but you know, 5% roughly is about half of the historical return of the market. Maybe I want to do that with all my money, a part of my money, or not. So the bottom line is. The bond market becomes a competing asset category. And when those yields start to move up into the 6% range, which by the way, Pimco came out not too long ago and said it's very probable that we could see a 6% tenure yield. So once again, you get to a point where you get up in that six percent range, at least my experience, that makes it what we call a really juicy yield. And what I mean by juicy is it becomes a very, very strong competing investment category. Where investors will go, Hey, you know what? Maybe I typically have a 60-40, meaning 60% of my money in the stock market, 40% in bonds. Maybe I'm gonna shift that around and go 60% in bonds and 40% in the stock market, right? So it becomes a real strong competing factor. So to wrap things up, the bottom line is again, stocks are celebrating, bonds are screaming. projections are pretty good for this upcoming earnings season. So hopefully those predictions are right and we continue to ride this market higher. But Purpose of today's show, just make you aware we have diverging markets. We'll see which one wins. Hopefully it'll be the stock market size, my opinion. God bless, have a great afternoon and a great weekend. I'll see you on Monday on the John Sanchez show. Take