Latest / The Financial Exchange Show / Why Young Workers May Have the AI Advantage

Transcript

Why Young Workers May Have the AI Advantage · The Financial Exchange Show

0:02
Speaker 1: The Financial Exchange is produced by Money Matters Radio and
0:04
Speaker 1: is hosted by employees of the Armstrong Advisory Group, a
0:07
Speaker 1: registered investment advisor. All opinions expressed are solely those of
0:10
Speaker 1: the hosts. Do not reflect the opinions of Armstrong Advisory
0:13
Speaker 1: or anyone else. Investments can lose money. This program does
0:16
Speaker 1: not offer any specific financial or investment advice. Please consult
0:19
Speaker 1: your own financial, tax, and estate planning advisors before making
0:22
Speaker 1: any investment decisions. Armstrong Advisory and the advertisers heard on
0:25
Speaker 1: this program do not endorse each other or their services.
0:27
Speaker 1: Armstrong and Money Matters Radio do not compensate each other
0:30
Speaker 1: for referrals and are not affiliated. This is the Financial
0:36
Speaker 1: Exchange with Chuck Zada and Mike Armstrong, your exclusive look
0:40
Speaker 1: at business and financial news affecting your day, your city,
0:44
Speaker 1: your world. Stay informed and up to date about economic
0:48
Speaker 1: and market trends, plus breaking business news every day. The
0:52
Speaker 1: Financial Exchange is a proud partner of the Disabled American
0:55
Speaker 1: Veterans Department of Massachusetts. Help us support our great American
0:59
Speaker 1: heroes by visiting dav five K dot Boston and making
1:03
Speaker 1: a donation today. This is the Financial Exchange with Chuck
1:07
Speaker 1: Zada and Mike Armstrong.
1:12
Speaker 2: Chuck, Mike and Tucker here, and as we kick things
1:18
Speaker 2: off this week, I gotta tell you, like.
1:24
Speaker 3: I don't know what to make.
1:27
Speaker 2: Of some of these markets. Sometimes these days hit me Chuck.
1:30
Speaker 2: So here's the deal. Earlier this morning, Iranian state media
1:36
Speaker 2: reported that Iran was pulling out of exchanging any messages
1:41
Speaker 2: with the US because of continued violations of the ceasefire
1:45
Speaker 2: in Lebanon. On top of that, the Iranian the IRGC
1:51
Speaker 2: came out and said that they are trying to take
1:54
Speaker 2: control of negotiations and that they may engage some other
1:57
Speaker 2: forces throughout the region to further shut things down. Whether
2:00
Speaker 2: any of this actually comes to fru listen or not, I.
2:03
Speaker 3: Have no idea.
2:05
Speaker 2: We've heard things like this sporadically over the last few months,
2:08
Speaker 2: and again sometimes it's true, sometimes it's not.
2:12
Speaker 3: I don't know.
2:13
Speaker 2: What I do know is that there are two major markets,
2:16
Speaker 2: three major markets that are moving today. Number one, as
2:19
Speaker 2: you would anticipate, oils up on this news. West Text
2:21
Speaker 2: Intermediate up about eight and a quarter percent, seven eighteen
2:24
Speaker 2: a barrel to ninety four fifty four.
2:27
Speaker 3: This does mean that if we hold.
2:28
Speaker 2: In that range, some of the gains that we've seen
2:31
Speaker 2: for gas prices coming down over the last week, likely
2:34
Speaker 2: to reverse again whether we hold in this range or not.
2:38
Speaker 3: I have no idea. We could, you know, in theory.
2:41
Speaker 2: Get a deal announced later today and it's like, oh, okay,
2:44
Speaker 2: I guess that was it. So you got crude oil
2:47
Speaker 2: up eight percent. On top of that, the tenure Treasury
2:51
Speaker 2: moving in sympathy, saying okay, if we're going to potentially
2:53
Speaker 2: have higher inflation, I got to go higher. So the
2:55
Speaker 2: ten year Treasury is up five point nine basis points
2:58
Speaker 2: to four point five to one to two percent. You
3:00
Speaker 2: got gold, as you would expect, they're selling off about
3:03
Speaker 2: two and a half percent, one hundred and seven dollars
3:05
Speaker 2: to forty four eighty five. So again all these major
3:09
Speaker 2: markets are moving exactly as you would expect. You then
3:12
Speaker 2: turn over to the S and P five hundred, which
3:15
Speaker 2: again you would say, hey, like oil moving up, bonds
3:18
Speaker 2: moving up, gold moving down. Okay, s andp's got to
3:20
Speaker 2: be getting you know, whacked, or hey, you know, semiconductors
3:24
Speaker 2: are just you know, off to the races again. And
3:25
Speaker 2: so the SMP's up. The SMP is completely flat on
3:29
Speaker 2: the day, just not moving and even if you take
3:34
Speaker 2: a look within the different sectors.
3:36
Speaker 3: I was gonna ask about that little fun chart that
3:38
Speaker 3: you have next.
3:39
Speaker 2: Yeah, energy's up, technology's up, everything else is down. So
3:45
Speaker 2: that's which, by the way, is the story of twenty
3:48
Speaker 2: twenty six. Energy stocks. You've killed it this year. Tech
3:51
Speaker 2: stocks killed it this year. Everything else not great. Here's
3:56
Speaker 2: what we've seen. Energy up twenty nine percent year to date,
4:00
Speaker 2: Tech up thirty four percent.
4:02
Speaker 3: Year to date.
4:04
Speaker 2: The S ANDP as a whole up about ten, communication
4:07
Speaker 2: services down two, financials down six, real estate up eight,
4:13
Speaker 2: consumer staples up five, industrials up ten, healthcare down four,
4:20
Speaker 2: materials up eleven, utilities up to consumer discretionary down point eight.
4:27
Speaker 2: It's been energy and tech that have carried this market.
4:31
Speaker 2: And that's what's happening today. So you get if you've
4:35
Speaker 2: built the barbell on your portfolio such that you're light
4:37
Speaker 2: everywhere but heavy, you know, energy and energy and tech
4:43
Speaker 2: great like your portfolio is rocking and rolling this year.
4:45
Speaker 2: If you, like everyone else, then you probably have one
4:48
Speaker 2: of the two. And you know, there aren't many people
4:51
Speaker 2: that rightly go overweight energy and tech like those are
4:55
Speaker 2: not usually great combos together. So this is what we've
4:59
Speaker 2: got going on in markets today, and obviously we'll keep
5:03
Speaker 2: you up to date on what goes on in the
5:05
Speaker 2: Middle East. What I can tell you was since our
5:07
Speaker 2: last show, it's been another three days with no meaningful
5:10
Speaker 2: shift in the straight of horror moves, which means we
5:12
Speaker 2: continue to scream towards some real energy problems in the world,
5:16
Speaker 2: starting probably in three to four weeks and really building
5:20
Speaker 2: to a crescendo in the late part of the summer.
5:22
Speaker 4: We did discuss this last week, Chuck, but I'll bring
5:25
Speaker 4: it up again that you hear us talk about this,
5:29
Speaker 4: and it all sounds logical. The shortages the one thing
5:31
Speaker 4: that we can't explain, and we've admitted as such, I
5:34
Speaker 4: can't really make heads and tails of why oil prices
5:37
Speaker 4: are where they are right now, meaning seemingly artificially low
5:42
Speaker 4: based on the risks that we are seeing play out here,
5:45
Speaker 4: and so there are some logical explanations. Traders have been
5:49
Speaker 4: burnt on bidding up oil prices several times in the past.
5:53
Speaker 4: There's clearly a lot of speculation about the President wanting
5:57
Speaker 4: to negotiate if oil prices get too high. All of
6:00
Speaker 4: those things can factor in. But when you talk about
6:03
Speaker 4: the realities of a commodity. Right, These are when people
6:06
Speaker 4: are bidding on oil, they are bidding on will I
6:09
Speaker 4: be able to get this physical product in the door.
6:13
Speaker 4: It's not what do I think in video could be
6:16
Speaker 4: worth based on new innovations. It's there's this barrel of
6:20
Speaker 4: something that I physically need and that just yeah, logically
6:24
Speaker 4: isn't making a ton of sense to us based on
6:26
Speaker 4: the risks. But yeah, hard to really say what's going
6:30
Speaker 4: to shift that.
6:31
Speaker 3: Look, if I would love for a world where we
6:34
Speaker 3: get to labor Day.
6:37
Speaker 2: And everyone listening can just laugh at me and be like, God,
6:41
Speaker 2: chuck your maroon. How could you possibly think that?
6:45
Speaker 3: Yeah, like I would.
6:46
Speaker 2: I would love it because I'd rather be wrong on this.
6:48
Speaker 2: I'd rather not see gas go to five six seven
6:51
Speaker 2: dollars a gallon.
6:53
Speaker 3: But I look at the mouth and I'm like, well,
6:55
Speaker 3: doesn't look great. You know. Now.
6:57
Speaker 2: The thing that you could see again in the short
6:59
Speaker 2: term to mitigate that, if you ever see any kind
7:01
Speaker 2: of either partial or complete export ban, either of product
7:05
Speaker 2: or crude. Yeah, in the short term that could help
7:07
Speaker 2: to keep prices lower. But it's a short term fix
7:10
Speaker 2: for you know, a whole bunch of reasons that after
7:12
Speaker 2: a few weeks it ends up having the opposite effect,
7:15
Speaker 2: and then you're right back to where he started, which
7:17
Speaker 2: is probably why they haven't put in place any kind
7:19
Speaker 2: of export band, Do they at some point?
7:21
Speaker 3: Maybe? I don't know. But again, we'll see where this
7:25
Speaker 3: goes here. But I would love to.
7:28
Speaker 2: Come in three months from now and just be like, hey,
7:32
Speaker 2: nothing happened with Oile.
7:33
Speaker 3: This's great. I don't think that's where we're going.
7:36
Speaker 2: But if I'm wrong, like I'm fine being wrong. You're
7:39
Speaker 2: not right all the time on stuff. But we'll see
7:42
Speaker 2: where things go. Let's take a quick break here, and
7:46
Speaker 2: when we return, I want to talk to you about
7:50
Speaker 2: gen Zers. They're graduating from college, they're graduating from high school.
7:55
Speaker 2: And we've been told for just a while, hey, your
7:59
Speaker 2: job market's gonna suck. You should be thankful to even
8:03
Speaker 2: like sniff a dollar. Well, let me tell you something.
8:07
Speaker 2: The gen z ers are sniffing, and it's not just
8:10
Speaker 2: a single dollar that they're sniffing, it's lots of them.
8:13
Speaker 2: Because exactly what Mike and I predicted in this case
8:18
Speaker 2: is happening. And so we're gonna take a victory lap
8:20
Speaker 2: when we return.
8:21
Speaker 1: The financial Exchange streams every day live on YouTube. Subscribe
8:25
Speaker 1: to our page and follow the markets all morning longs
8:27
Speaker 1: only here on the Financial Exchange Radio Network. Here the
8:32
Speaker 1: Financial Exchange every day from eleven to noon non Serious
8:35
Speaker 1: XM's Business Radio Channel one thirty two. Keep it here
8:38
Speaker 1: for the latest business and financial news and the trends
8:41
Speaker 1: on Wall Street. The Financial Exchange is now life on
8:44
Speaker 1: Serious XM's Business Radio Channel one thirty two. Thanks, He's
8:48
Speaker 1: the Financial Exchange Radio Network. Time for trivy.
9:00
Speaker 5: We are in the Financial Exchange and on this day.
9:03
Speaker 5: In eighteen sixty eight, former President James Buchanan passed away
9:07
Speaker 5: at the age of seventy seven. Buchanan is often viewed
9:10
Speaker 5: as one of the worst US presidents in history, but
9:13
Speaker 5: is remembered for a personal decision that makes him stand
9:17
Speaker 5: out from every other president in US history. So our
9:21
Speaker 5: trivia question today, James Buchanan is the only US president
9:25
Speaker 5: to never do what? Once again, James Buchanan is the
9:29
Speaker 5: only US president to never do what. Be the first
9:35
Speaker 5: person to text us at six one, seven, three, six two,
9:38
Speaker 5: thirteen eighty five with correct answer along with keyword trivia,
9:41
Speaker 5: and you win a Financial Exchange Show T shirt.
9:44
Speaker 3: Once again.
9:45
Speaker 5: The first correct response to text us to the number
9:48
Speaker 5: six one, seven, three, six, two thirteen eighty five with
9:51
Speaker 5: the correct answer along with keyword trivia will win that
9:54
Speaker 5: T shirt. See complete contest rules at Financial Exchange Show
9:57
Speaker 5: dot com.
9:59
Speaker 2: All right, we got a piece here in Bloomberg Opinion.
10:03
Speaker 2: It's titled Guess Who's gotten Edge? I'm sorry, I guess
10:05
Speaker 2: who's got an AI edge in a tough job market?
10:10
Speaker 2: The answer is Generation Z and here is what we
10:17
Speaker 2: are seeing.
10:18
Speaker 3: Quote, the labor.
10:19
Speaker 2: Market for fresh graduates is beginning to look more welcoming
10:21
Speaker 2: than it has in recent years.
10:22
Speaker 3: Oh that's interesting.
10:24
Speaker 2: Companies are better placed to hire again after headcount reductions
10:27
Speaker 2: and hiring freezes on white collar rolls helped them get
10:29
Speaker 2: past the overstaffing of the pandemic era.
10:31
Speaker 3: Mike, where did I hear that previously? I don't know.
10:34
Speaker 3: Was that from US?
10:35
Speaker 4: Yeah? I think it was the unemployment rate for twenty
10:39
Speaker 4: to twenty four year olds for the first four months
10:42
Speaker 4: of last year. I'm going to read them off eight percent,
10:44
Speaker 4: eight three, seven, six, and eight two first four months
10:49
Speaker 4: of this year seven seven, four, six, four and seven
10:54
Speaker 4: point six. So all four of those substantially lower than
10:57
Speaker 4: where we were last year. I know it's only a
11:00
Speaker 4: percentage point, but that is lower. And it appears, based
11:05
Speaker 4: on these early signals that maybe that concern about the
11:09
Speaker 4: youth unemployment rate and the toughness of the job market
11:12
Speaker 4: for those graduating seniors was a bit overdone.
11:15
Speaker 3: Well.
11:15
Speaker 2: I think two things were happening last year, not last year.
11:19
Speaker 2: Like the last couple companies over hired in twenty one
11:22
Speaker 2: and twenty two, they brought on a bunch of talent
11:25
Speaker 2: at crazy high prices because you had to compete for it,
11:29
Speaker 2: and they've spent the last couple years trying to get
11:30
Speaker 2: rid of that. Some of it's been through announced the layoffs.
11:33
Speaker 2: Some of it's been through return to office mandates. I've
11:35
Speaker 2: said all along, look you see a return to office mandate.
11:38
Speaker 2: It's not actually that Jamie Dimon wants everyone to come
11:41
Speaker 2: into Manhattan. It's that he doesn't want everyone to come
11:45
Speaker 2: into Manhattan. He wants to be like, guys, go away.
11:47
Speaker 2: I don't need you. I hired you because I thought
11:50
Speaker 2: I did, and now I don't, and you're expensive and
11:53
Speaker 2: i'd like you to leave. But now you've got all
11:56
Speaker 2: these kids. I gotta tell you, wouldn't it be would
12:00
Speaker 2: it be just wild if if the last two years
12:04
Speaker 2: was just a giant operation by big companies to try
12:09
Speaker 2: to convince kids that they're never going to get a job,
12:12
Speaker 2: so they're just thankful for one, and we'll get hired
12:14
Speaker 2: for whatever cause I got.
12:15
Speaker 3: You talk to any.
12:16
Speaker 2: Twenty two year old graduating from college, You talk to
12:20
Speaker 2: any twenty two year old graduating from college, and they're
12:22
Speaker 2: just they are mopey, they are sad about the future.
12:27
Speaker 2: They're just like, I'm never gonna have a job because
12:29
Speaker 2: a robot's gonna take it.
12:31
Speaker 4: Just envisioning Jamie Diamond and Mark Zuckerberg like winking at
12:34
Speaker 4: each other from across the rim.
12:35
Speaker 2: Yes, it's just that it's and so you've got all
12:39
Speaker 2: these twenty two year olds that are just like my
12:42
Speaker 2: wife's basically over because robots are gonna do it all.
12:46
Speaker 4: Here was the narrative that never made a ton of
12:48
Speaker 4: sense to me. The narrative was artificial intelligence at this
12:51
Speaker 4: stage is pretty good at doing a bunch of things
12:54
Speaker 4: that twenty to twenty four year olds would typically do
12:56
Speaker 4: in a job. And that could be designing a slide deck,
12:59
Speaker 4: that could be you know, manually putting numbers into a
13:01
Speaker 4: spreadsheet and all that turns out to be true, but
13:05
Speaker 4: some of it sucks. Some of it still sucks at it.
13:07
Speaker 4: But what's also true is it's a heck of a
13:09
Speaker 4: lot cheaper to pay a twenty two year old to
13:12
Speaker 4: use that AI tool to do that than to pay
13:14
Speaker 4: the fifty two year old to do that. Yes, so, like,
13:17
Speaker 4: there was nothing about this whole argument that I thought
13:20
Speaker 4: made a ton of sense.
13:21
Speaker 3: And if your real goal.
13:23
Speaker 4: Is to say we as an organization need to push
13:26
Speaker 4: this new technology to its limits and make sure that
13:28
Speaker 4: we can test it out and be successful with it,
13:31
Speaker 4: you're probably gonna want a bunch of twenty something year
13:34
Speaker 4: olds to do that rather than a bunch of sorry,
13:37
Speaker 4: fifty something you're.
13:38
Speaker 2: Mike, Mike, I gotta tell you, like I am now
13:41
Speaker 2: old enough that I'm not the person who can do
13:44
Speaker 2: this at its most efficient level.
13:45
Speaker 3: Yep.
13:47
Speaker 2: We've all got to reckon with this that at some
13:49
Speaker 2: point in our careers we've become the dinosaurs, and that
13:52
Speaker 2: that's fine, Like it happens to all of us. And
13:56
Speaker 2: I know that when it comes to being able to
13:59
Speaker 2: be on the cutting edge of AI, I'm not there.
14:02
Speaker 2: I'm on what's the not cutting edge, Like, what's the
14:05
Speaker 2: dull I'm on the dull edge of AI. You know,
14:09
Speaker 2: I'm on like the handle of the knife. That's that's
14:12
Speaker 2: the part that I can do. I can't do that
14:14
Speaker 2: the cutting edge stuff, sure, and I know that. So
14:18
Speaker 2: all of us have to reckon with this that unless
14:21
Speaker 2: you spend a ton of efforts staying up to date
14:24
Speaker 2: on like the newest technology, someone eventually comes along who's
14:30
Speaker 2: younger and more native to it and they replace you
14:32
Speaker 2: like that is the nature of the beast. And by
14:34
Speaker 2: the way, if the company can also save a bunch
14:36
Speaker 2: of money on health insurance and this and that, of
14:38
Speaker 2: course that age exists also.
14:41
Speaker 4: Yeah, So I will just repeat something that we've repeated
14:44
Speaker 4: a few times now. If you're a graduating senior from
14:48
Speaker 4: college right now and you're having a tough time finding
14:49
Speaker 4: a job, it's not to minimize your experience. It is
14:52
Speaker 4: to say it can get a hell of a lot worse.
14:54
Speaker 3: Than it is right now.
14:56
Speaker 4: The unemployment rate for folks that we're graduating in twenty
14:59
Speaker 4: twenty during COVID for twenty twenty four year olds was
15:02
Speaker 4: twenty five percent. What about two thousand and nine, The
15:04
Speaker 4: unemployment rate in April of two thousand and nine was
15:10
Speaker 4: over fourteen percent. The unemployment rate in two thousand and two,
15:16
Speaker 4: after the dot com bubble blew up, was ten percent.
15:19
Speaker 4: This is for twenty to twenty four for twenty to
15:21
Speaker 4: twenty four year. Yeah, so again, it might be tough
15:24
Speaker 4: out there. I'm not trying to tell you that your
15:27
Speaker 4: experience isn't difficult. But if we all just sit here
15:30
Speaker 4: and say how terrible things are, then we're doing you
15:33
Speaker 4: a disservice because it can get.
15:35
Speaker 3: A hell of a lot worse. Well, and it's actually improving.
15:39
Speaker 3: Now that's the other piece.
15:41
Speaker 4: Yeah, year over year, the unemployment rate for that demo
15:45
Speaker 4: in particular has improved. It's been worsened for the overall
15:51
Speaker 4: unemployment rate. If I'm not mistaken, I think, yes, actually
15:54
Speaker 4: I know that the unemployment rate is higher for the
15:58
Speaker 4: entire demographics of this.
16:00
Speaker 3: Country year over year. But for that young demo it's improven.
16:04
Speaker 2: Inside the ambitious plan that actually made home prices in
16:07
Speaker 2: Austin affordable again hint the control, they built more houses.
16:11
Speaker 4: Oh yeah, yeah, Now it wasn't that simple because you
16:16
Speaker 4: had to actually do a bunch of things in order
16:17
Speaker 4: to build more houses. It wasn't just the state saying, hey,
16:20
Speaker 4: we're going to build houses. They're the city saying we're
16:23
Speaker 4: going to build houses. It was changing a bunch of laws,
16:27
Speaker 4: studying things and taking action, and probably pissing off a
16:31
Speaker 4: bunch of residents who didn't want to see those changes
16:34
Speaker 4: because of nimbiism. But what they've actually experienced is that
16:39
Speaker 4: the monthly cost to own a home, while it had
16:42
Speaker 4: soared dramatically, has come way down since twenty twenty in
16:46
Speaker 4: the city of Austin. And it all has to do
16:48
Speaker 4: with plain old supply and demand rather than interference with
16:52
Speaker 4: rent control and affordable housing and a bunch of different
16:55
Speaker 4: things that you could do instead to try and change
16:58
Speaker 4: the price of houses, which we are not going to
17:00
Speaker 4: do here.
17:01
Speaker 2: They overhauled zoning to allow for multiple for not just multiple,
17:06
Speaker 2: more homes on a single lot than previously were allowed.
17:10
Speaker 3: They removed parking space requirements for some new developments.
17:14
Speaker 2: They simplified and cheapened the permit approval process. These are
17:19
Speaker 2: all things that are not, like, particularly complicated. They do
17:21
Speaker 2: have a lot of local resistance because gotta tell you again,
17:26
Speaker 2: you can have one of you can have one of
17:29
Speaker 2: two views, but you can't hold both You can say
17:33
Speaker 2: I don't want more construction in my town, but if
17:36
Speaker 2: you do that, you are not allowed to complain about
17:38
Speaker 2: your property taxes. Or you can complain about your property taxes,
17:43
Speaker 2: but then you have to allow more construction in your town.
17:45
Speaker 3: You cannot do both. I assure you you can. You can,
17:50
Speaker 3: but if you do, then your hypocrite, not just that
17:55
Speaker 3: you're not nice. Yeah, this is the deal. If you
18:00
Speaker 3: want lower property taxes, allow more construction to happen. Yeah,
18:04
Speaker 3: Otherwise you.
18:06
Speaker 2: Have these shrinking, you know, shrinking tax bases that Hey,
18:11
Speaker 2: guess what, teachers need, you know, a raise, firefighters need
18:15
Speaker 2: a raise.
18:15
Speaker 3: We've got to replace the road on main Street.
18:17
Speaker 2: We've got to put you know, new lights up because
18:20
Speaker 2: like everyone's running into the woods on this street, and
18:24
Speaker 2: like we need a barrier. That this stuff costs money,
18:28
Speaker 2: and unfortunately, due to a little thing known as inflation,
18:31
Speaker 2: the amount of money that it costs goes up each year,
18:34
Speaker 2: which means if you don't allow for construction, your property
18:37
Speaker 2: taxes will go up.
18:37
Speaker 4: To Now, look, I fully recognize that that construction that
18:41
Speaker 4: allows more kids into the town and requires maybe more
18:45
Speaker 4: fire stations and more teachers and school that needs to
18:48
Speaker 4: be redone. But we've seen over and over again that
18:52
Speaker 4: that all gets outweighed by the new construction that comes
18:55
Speaker 4: in that then brings in more property taxes. So again,
18:58
Speaker 4: these are the arguments that I hear locally from people,
19:00
Speaker 4: is our schools can't fit more students.
19:03
Speaker 2: It's fine, they don't need to. Here's the other thing
19:04
Speaker 2: you can do. You know what I hear from a
19:06
Speaker 2: bunch of people over the edge of fifty five, Hey,
19:09
Speaker 2: there's nowhere for me to move. That's all houses on
19:11
Speaker 2: one level that you know, great, how about over fifty
19:14
Speaker 2: five communities? You need any teachers for those not that
19:16
Speaker 2: I'm are, no, you don't. You do need to spend
19:18
Speaker 2: the money on the sewer, and you still need you know,
19:20
Speaker 2: fire departments and police like. I get that, But there
19:24
Speaker 2: aren't that many sixty five year olds enrolling new kids
19:27
Speaker 2: into school. There are a few occasionally, but not many.
19:30
Speaker 2: Quick break when we come back, we got Wall Street.
19:33
Speaker 6: Watch bringing the latest financial news straight to your radio.
19:44
Speaker 6: Every day. It's the Financial Exchange on the Financial Exchange
19:48
Speaker 6: Radio Network. Tell you no full Wall Street Watch treking
19:53
Speaker 6: the stocks, potato and the headlines driving markets so far today.
19:57
Speaker 6: Right here on the Financial exchange, radio.
20:00
Speaker 5: Work markets are mixed and mostly quiet to begin the
20:03
Speaker 5: new month, with oil prices jumping higher on a report
20:07
Speaker 5: that around will halt talks with the US and completely
20:09
Speaker 5: block the Strait of Hormuz.
20:11
Speaker 3: The tech sector.
20:12
Speaker 5: Also garnering attention on the heels of news from in video.
20:16
Speaker 5: Right now, the Dow is down about two tenths of
20:19
Speaker 5: a percent, NASDAK up a tenth of a percent, NASDAK.
20:23
Speaker 3: Did I just say?
20:24
Speaker 5: Nasdaq S and P five hundred is up a tenth
20:26
Speaker 5: of a percent, The Nasdaq is up a third of
20:28
Speaker 5: a percent. We're else two thousand is down about nine
20:31
Speaker 5: tenths of a percent. Tenure Treasure reeled up four basis
20:34
Speaker 5: points at four point four to nine percent, and oil
20:37
Speaker 5: jumping over seven and a half percent higher, trading right
20:40
Speaker 5: around ninety four dollars a barrel. And Vidia unveiled unveiled
20:44
Speaker 5: details to its new RTX Spark super chip designed for
20:49
Speaker 5: running AI agents. And Video also revealed its first personal
20:54
Speaker 5: laptop computers and we'll work with six manufacturers including Dell, HP, Lenovo,
20:59
Speaker 5: ace MSI, and Microsoft and Video. Stock is up by
21:03
Speaker 5: four percent, while competitors like Qualcomm, Intel and AMD are
21:09
Speaker 5: seeing losses in reaction to the news. Meanwhile, Berkshire Hathaway
21:13
Speaker 5: agreed to acquire Taylor Morrison Home for six point eight
21:16
Speaker 5: billion dollars, sending shares and Taylor up by twenty two percent.
21:20
Speaker 5: The New York Times reported that Barry Dillars People Inc.
21:23
Speaker 5: Is readying and offered by MGM Resorts that values it
21:26
Speaker 5: at more than eighteen billion dollars MGM up by fifteen percent.
21:32
Speaker 5: And Bloomberg reporting that Young Brands is in talks to
21:35
Speaker 5: sell it's Pizza Hut chain to Long Range Capital on
21:40
Speaker 5: Tucker Silva and that is Wall Street Watch and in
21:42
Speaker 5: the previous segment, we asked you the trivia question. James
21:45
Speaker 5: Buchanan is the only US president to never do what
21:50
Speaker 5: that would be get married. And Russell from Warwick, Rhode
21:53
Speaker 5: Island is our winner today taking on my Financial Exchange
21:57
Speaker 5: Show t shirt. Congrats to Russell. We played t thank
22:00
Speaker 5: revia every day here on the Financial Exchange See complete
22:04
Speaker 5: contest rules at Financial Exchange Show dot com.
22:08
Speaker 3: Piece from Barons. More than forty percent of Americans retire
22:14
Speaker 3: earlier than expected or intended. Only twenty one percent of
22:19
Speaker 3: those who retired early, though, said they did so because
22:22
Speaker 3: they had saved enough money. Other cited health issues or
22:25
Speaker 3: job loss as reasons.
22:27
Speaker 4: Yeah, twenty percent is not a good number there. No,
22:31
Speaker 4: when is the right time? I mean always we say
22:35
Speaker 4: the right time to start thinking about this sort of
22:37
Speaker 4: thing is yesterday. But in my mind, if you're over
22:40
Speaker 4: the age of fifty and you haven't begun to map
22:45
Speaker 4: out what your retirement looks like, that's that's when you start.
22:48
Speaker 3: Doing yourself a bigger disservice.
22:51
Speaker 4: Obviously, if you can do so in your thirties and
22:52
Speaker 4: forties and and plan out your savings and kind of
22:55
Speaker 4: think through retirement, and that's great, But most people don't
22:58
Speaker 4: have any idea what retirement's going to look like when
23:00
Speaker 4: they're in their thirties or forties, so it's kind of
23:03
Speaker 4: a moot point at that stage. But you turn fifty one,
23:07
Speaker 4: you know, the risk of one of those health issues
23:10
Speaker 4: coming to you, know, surprise somebody at that stage and
23:14
Speaker 4: end their career early just gets higher the older you get.
23:18
Speaker 3: Two.
23:19
Speaker 4: If you're sitting there at fifty six years old and
23:21
Speaker 4: pretending that agism in the workforce doesn't exist, give me
23:25
Speaker 4: a break, right, Like I've seen it too many times.
23:29
Speaker 4: Even if you aren't laid off. There are oftentimes very
23:32
Speaker 4: attractive buyout offers that are targeted towards those older workers,
23:37
Speaker 4: and you're going to start considering those things because let's
23:42
Speaker 4: take a federal employee last year, right, all of them
23:45
Speaker 4: were offered a buyout offer, and all of them were
23:47
Speaker 4: told and you might get laid off if you don't
23:49
Speaker 4: take it. Sure, if you're fifty nine, you're going to
23:51
Speaker 4: be far more likely to look at that option than
23:54
Speaker 4: somebody in their thirties, who can, you know, seize a
23:57
Speaker 4: longer career in front of them. And so this piece,
24:02
Speaker 4: unfortunately doesn't surprise me a whole lot. It would also
24:05
Speaker 4: surprise me if the eighty percent of people who didn't
24:09
Speaker 4: choose to retire early were financially well prepared for it.
24:13
Speaker 4: But it goes back to something that we talk about
24:16
Speaker 4: all the time, which is it sure does give you
24:19
Speaker 4: peace of mind to know that you're not going to
24:21
Speaker 4: work a day longer than you have to. Many people
24:25
Speaker 4: choose to work a lot longer than they need to,
24:28
Speaker 4: but going into that job knowing, hey, if the worst
24:32
Speaker 4: happens and I have to retire a year before I
24:35
Speaker 4: was prepared to initially or that job buy outcomes. That
24:39
Speaker 4: layoff offer comes, and I want to take it and
24:41
Speaker 4: go on unemployment and get the severance from my employer.
24:46
Speaker 4: I know that I'm prepared to do so and can
24:48
Speaker 4: afford it. Is a huge relief and you can see
24:51
Speaker 4: it on people's faces when they get that news. You
24:55
Speaker 4: can also see it on their faces when they're not
24:57
Speaker 4: prepared for it and get that news. If you fall
24:59
Speaker 4: into that camp, you're over the age of fifty, you're
25:02
Speaker 4: thinking about your future and you don't feel as though
25:05
Speaker 4: you've got a plan. Help, Let the Armstrong Advisory Group
25:09
Speaker 4: help you build out that plan and at least understand
25:12
Speaker 4: what your options are going to look like in the future. Again,
25:15
Speaker 4: I keep going back to that theme, don't work longer
25:18
Speaker 4: than you have to work because you want to, but
25:21
Speaker 4: not because you need to, and developing that plan is
25:24
Speaker 4: the first step in that process. You can give the
25:26
Speaker 4: folks at Armstrong Advisor Group a call the numbers eight
25:28
Speaker 4: hundred three nine three four zero zero one. We work
25:32
Speaker 4: with folks remotely in person. We have offices scattered throughout
25:35
Speaker 4: New England. But you know, whatever your preference is for
25:38
Speaker 4: that first conversation is up to you. The number again
25:41
Speaker 4: eight hundred three nine three for zero zero one, or
25:44
Speaker 4: you can learn a lot more at Armstrong Advisory dot com.
25:47
Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
25:50
Speaker 1: registered investment advisor. Nothing in the ad or in any
25:52
Speaker 1: Armstrong guide a specific financial, legal, or tax advice. Consult
25:56
Speaker 1: your own financial, tax into state planning advisors before making
25:58
Speaker 1: any investment decisions. Armstrong make contact you to offer investment
26:01
Speaker 1: advisory services.
26:03
Speaker 2: Got a piece here from the Wall Street Journal the
26:06
Speaker 2: home insurance coin flip. Nearly half of claims result in
26:10
Speaker 2: zero payout. I'll quote here. The problem is getting worse.
26:14
Speaker 2: The five biggest home insurers as a group didn't pay
26:17
Speaker 2: out on more than forty four percent of claims resolved
26:19
Speaker 2: last year, forcing homeowners and renters to fund.
26:21
Speaker 3: Repairs out of their own pockets. Quote.
26:25
Speaker 2: One way they've done this is to raise deductibles, or
26:27
Speaker 2: the amount the customer has to pay before the insurer
26:29
Speaker 2: kicks in. Some companies applied higher deductibles to specific risks,
26:33
Speaker 2: such as Hurricane Inhale, and they've also set tighter criteria
26:36
Speaker 2: for claims on expensive items like roof replacements. So there's
26:42
Speaker 2: a few things to unpack here. The first is that
26:48
Speaker 2: when this is saying that forty four percent of claims
26:50
Speaker 2: resolved with no payout. That includes ones in which the
26:55
Speaker 2: claim was simply small enough that the deductible absorbed the
26:59
Speaker 2: entire thing, meaning the insured didn't have to pay anything
27:02
Speaker 2: out there. Okay, quite honestly, if you are filing a
27:07
Speaker 2: claim that is smaller than you're deductible, you're hurting yourself.
27:11
Speaker 2: You are the problem in the insurance industry. I gotta
27:16
Speaker 2: be honest, you are the problem. Because here's the deal.
27:21
Speaker 2: All of those claims the insurers are then taken saying, okay,
27:25
Speaker 2: like we have let's say that you've got a Homo's
27:29
Speaker 2: insurance policy that's got a ten thousand dollars deductible and
27:34
Speaker 2: I don't know, you've got something small that happened like
27:36
Speaker 2: that caused it. Realistically, you're like, okay, you got your estimates.
27:41
Speaker 2: It's gonna be like four or five thousand bucks in damage.
27:44
Speaker 2: You filing that claim to the insurer means that they
27:47
Speaker 2: now have on record that AU like to file claims,
27:50
Speaker 2: and b that a certain percentage of claims are going
27:53
Speaker 2: to be X number of dollars, which means that they
27:56
Speaker 2: have to then charge based on the assumption that those
27:59
Speaker 2: types of things are going to continue in the future,
28:01
Speaker 2: which drives up premiums for everyone.
28:04
Speaker 3: The worst ones, quite honestly, are.
28:07
Speaker 2: The ones where and you see, like I gotta be honest,
28:11
Speaker 2: the auto claims are the ones that I really don't
28:14
Speaker 2: understand because homeowners ones a lot of them end up
28:16
Speaker 2: being big and it's whatever. The auto ones where and look,
28:20
Speaker 2: I get everything at auto is expensive now, like you
28:23
Speaker 2: have like a dent in your bumper and it's two
28:25
Speaker 2: thousand dollars just because of you know, the sensors and
28:28
Speaker 2: now the car is built in this and that.
28:29
Speaker 3: Like, I get it.
28:31
Speaker 2: But when you file a two thousand dollars claim on
28:33
Speaker 2: a fifteen hundred dollars deductible, you're saving yourself five hundred
28:37
Speaker 2: bucks in the short term. But now the insurance gonna
28:41
Speaker 2: come back to you and say, guess what you're filing
28:43
Speaker 2: on something that small. I gotta charge you more because
28:47
Speaker 2: you could have one of those every three years.
28:50
Speaker 3: Yeah.
28:50
Speaker 4: Not to completely come to the defense of insurance companies,
28:53
Speaker 4: I'm sure they reject a whole bunch of things. Of
28:55
Speaker 4: course they do, as insurance companies do.
28:57
Speaker 1: Right.
28:58
Speaker 4: The idea is, hey, if we just reject the claim,
29:00
Speaker 4: then there's a good chance they won't come back and
29:02
Speaker 4: fight us on it. Sure, And that is the first
29:05
Speaker 4: instinct of health insurance companies, auto insurers, homeowners insurers. And
29:10
Speaker 4: then there are also some bad decisions that get made
29:13
Speaker 4: by But we all know somebody who has gone through
29:17
Speaker 4: that process right of legitimate damage to their home, filing
29:21
Speaker 4: a claim and thel adjuster coming out and saying, ah, no,
29:23
Speaker 4: we're not covering that.
29:24
Speaker 3: We all know that insurers suck.
29:27
Speaker 2: Yes, we get so we start that as the press.
29:29
Speaker 2: We're starting from the baseline that they suck. But when
29:36
Speaker 2: we talk about part of the reason that they suck,
29:40
Speaker 2: it's because of how people try to use the insurance system,
29:46
Speaker 2: And what I mean by that is, look, quite honestly,
29:49
Speaker 2: I think a lot of people use it for claims
29:51
Speaker 2: that are way smaller than they need to. Insurance should be, Hey,
29:56
Speaker 2: you need it for the catastrophic thing that you can't
29:59
Speaker 2: deal with other right, and if you're filing the claim
30:03
Speaker 2: on something that is like a three hundred dollars difference
30:06
Speaker 2: between you paying it and the insurance company covering part
30:09
Speaker 2: of it, that's usually not big enough to make the difference.
30:14
Speaker 2: The stuff where it's like, hey, car's total great, gotta
30:17
Speaker 2: use like, yes, obviously tree fell on roof. Obviously roof
30:23
Speaker 2: got ripped off by hurricane. Obviously you can.
30:26
Speaker 3: Go through the not covered hurricane. Yes, I know that
30:31
Speaker 3: you need the special coverage for that. I get it.
30:34
Speaker 2: But the stuff where it's like, hey, my kid like
30:38
Speaker 2: broke a window with a baseball, Well, no, don't file
30:42
Speaker 2: the glass claim with your insurer. You're just gonna drive
30:44
Speaker 2: your premiums up and end up paying more in the
30:46
Speaker 2: long run. You know, That's the stuff that I'm talking So, yes,
30:51
Speaker 2: I start from the premise that the insurers are going
30:53
Speaker 2: to try to deny everything they can, even stuff that's reasonable. Yes,
30:58
Speaker 2: but I also think if you're trying to manage at
31:00
Speaker 2: your own premiums, you need to really think in terms of, Okay,
31:04
Speaker 2: if I'm filing.
31:05
Speaker 3: This, what does this do to my profile?
31:07
Speaker 2: What does it due to my premiums later on? Because yes,
31:11
Speaker 2: I might save five hundred bucks today, but now I'm
31:14
Speaker 2: paying an extra three hundred for the next ten years
31:16
Speaker 2: and I end up coming out behind.
31:17
Speaker 4: This does not have to do directly with this, but
31:19
Speaker 4: just an interesting piece of insurance companies that people don't
31:22
Speaker 4: realize that I think is worth mentioning they have. They
31:26
Speaker 4: get concentration risk, and they price based on that concentration risk.
31:31
Speaker 4: And what I mean by that is literal geographic concentration risk.
31:34
Speaker 4: So if XYZ Insurance Company writes a whole bunch of
31:40
Speaker 4: policies on coastal New Hampshire, and then all of a
31:43
Speaker 4: sudden they find themselves because other policies canceled in other
31:47
Speaker 4: parts of the country and now they're just ensuring a
31:49
Speaker 4: ton of homes in coast in New Hampshire. Typically what
31:52
Speaker 4: they are going to do is two things. One raise
31:54
Speaker 4: prices like crazy on those homes in coast in New Hampshire.
31:58
Speaker 4: And then two they're going to fly drone over your
32:00
Speaker 4: home and do all sorts of things to figure out
32:02
Speaker 4: which policy is to cancel. Yes, that is why you
32:06
Speaker 4: can save a bunch of money by shopping around. It's
32:08
Speaker 4: not because you know one company is better than the other.
32:10
Speaker 4: It's because they are all looking for something different out
32:13
Speaker 4: of their customer and nobody seems to get that. So
32:16
Speaker 4: for those that are underware like that is the big
32:18
Speaker 4: reason why by shopping your policy every few years you
32:21
Speaker 4: can get a massive deal because some other insurer that
32:24
Speaker 4: doesn't have any exposure to coastal New Hampshire, as an example,
32:27
Speaker 4: might want it. Might want that, yeah, at a slightly
32:29
Speaker 4: better price. They might be like, oh, we've got too
32:31
Speaker 4: much Florida, we need New Hampshire. We've got too much Arizona,
32:35
Speaker 4: we need Iowa.
32:36
Speaker 2: Yeah.
32:37
Speaker 3: So yeah, it's an interesting point.
32:39
Speaker 2: It's the funny thing, Like, it's not to say that
32:42
Speaker 2: you aren't getting hosed before, because you are, but there's
32:46
Speaker 2: a concrete reason why, and it's that that insure had
32:50
Speaker 2: potential losses there that they need to cover, and they
32:53
Speaker 2: did it through raising your premium.
32:54
Speaker 4: And there's just not a lot of other markets that
32:56
Speaker 4: work quite like that, so it's worth explaining.
32:58
Speaker 2: I feel like there are, it's just they're not opaque
33:01
Speaker 2: and people don't like they're ones that you shot more frequently. Sure,
33:04
Speaker 2: let's take a quick break. When we come back, we
33:07
Speaker 2: got stack roulettes.
33:08
Speaker 1: Remember you can watch the show live every day on
33:12
Speaker 1: our YouTube page. We've got market updates and breaking business
33:15
Speaker 1: news all morning long, plus a full archive of all
33:18
Speaker 1: our show's content. It's all there with that click of
33:21
Speaker 1: a button at YouTube dot com. Slash the Financial Exchange
33:24
Speaker 1: Show from Breaking news to market analysis. Follow the Financial
33:29
Speaker 1: Exchange Show on x and watch the show live every day.
33:32
Speaker 1: This is the Financial Exchange Radio Network.
33:47
Speaker 3: Mike, what do you got from me? For stack roulettes?
33:49
Speaker 4: Protein shock protein everywhere, whether it's in your SODA's, your coffees,
33:55
Speaker 4: or your cereals. You are now getting food companies adding
34:00
Speaker 4: protein to everything in the latest diet craze. It is
34:04
Speaker 4: actually causing a shortage of whegh protein, which is the
34:07
Speaker 4: primary protein that they add to all of this stuff,
34:09
Speaker 4: which is a byproduct of the cheesemaking process. I just
34:14
Speaker 4: wonder why people think this is going to turn out
34:16
Speaker 4: to be any different from any of the diet crazes
34:19
Speaker 4: over the last thirty years. Won't right, Like in the nineties,
34:22
Speaker 4: it was the fat free craze, but then everything tasted
34:24
Speaker 4: like crap because you took the fat out of it.
34:25
Speaker 3: So we added a ton.
34:26
Speaker 2: Of well fake sugar, and it turned out that the
34:28
Speaker 2: fat free thing wasn't it turns out you need fat also.
34:32
Speaker 3: Yeah, you also do need fat.
34:33
Speaker 4: But then they created like diet products, and you know
34:37
Speaker 4: a bunch of products that added a bunch of high
34:39
Speaker 4: fruit dose corn syrup syrup and caused all sorts of
34:42
Speaker 4: diabetes issues. You had the low carb Atkins type diets
34:45
Speaker 4: where you cut out fruit and brains and all this
34:47
Speaker 4: stuff to lose weight quickly, and then yeah.
34:50
Speaker 3: It was all gain it all back.
34:53
Speaker 1: Watching.
34:55
Speaker 4: I just I can't imagine what. I don't know enough
35:00
Speaker 4: about food science to tell you what the protein craze
35:03
Speaker 4: is going to result in. But I assure you, a
35:05
Speaker 4: few years from now, we're gonna look back and you're like, Wow,
35:07
Speaker 4: that turned out to be a pretty bad idea. Just
35:09
Speaker 4: stop adding stuff to your food. If you want to
35:11
Speaker 4: eat a high protein diet, like, go eat some chicken
35:14
Speaker 4: and beans rather than adding way protein to everything that
35:18
Speaker 4: you can.
35:18
Speaker 3: Like, it just seems like a bad idea to make.
35:21
Speaker 5: If you're adding way protein or whatever to Kraft mac
35:25
Speaker 5: and cheese, which yep they are, Like what are we
35:29
Speaker 5: doing at this point right?
35:32
Speaker 3: It seems like you're actually adding way too much protein? Yeah, Like,
35:36
Speaker 3: why would you food this stuff to your kids? Well?
35:39
Speaker 4: Look, I'm not that there's anything meaningfully wrong with way
35:42
Speaker 4: protein we've been eating, Like, I get it, but I
35:47
Speaker 4: just I don't. You're taking like a chemically produced additive
35:52
Speaker 4: and putting into food, and I just can't imagine that's
35:56
Speaker 4: going to be the good resulting.
35:58
Speaker 2: Here's the thing, no one actually knows exactly how the
36:04
Speaker 2: human body works.
36:06
Speaker 4: And unfortunately for all of us who each human body
36:08
Speaker 4: works a little bit differently.
36:09
Speaker 2: They all work a little bit differently, and none of us,
36:13
Speaker 2: no one, there's no like one consistent thing where it's like,
36:16
Speaker 2: do this and everything's perfect. Other than what I will say,
36:19
Speaker 2: if you do some squats a few times a day,
36:22
Speaker 2: actually a great predictor of overall health.
36:26
Speaker 3: Balance is a huge thing.
36:27
Speaker 2: Yeah, Like between the combination of like strength and getting
36:30
Speaker 2: your heart moving enough just to like drop your body
36:33
Speaker 2: down and lift it up, really good predictor of overall health.
36:36
Speaker 2: Beyond that, I have no idea. Here's what I know
36:40
Speaker 2: is that generally, because I have no idea, it's like
36:44
Speaker 2: a portfolio. If I diversify, I'm probably not gonna have
36:48
Speaker 2: the best performance. I'm probably not gonna have the worst,
36:52
Speaker 2: and I'll take that. Like I have some beans, I
36:56
Speaker 2: have some fish, I have some pasta, I have some cheese,
36:59
Speaker 2: I have some beer. I have some shrimp, I have
37:01
Speaker 2: some cookies. I like Again, I think it's okay to
37:05
Speaker 2: eat everything. Just don't do too much of anything. That's
37:08
Speaker 2: that's the only thing I know. The rest of this
37:11
Speaker 2: is just trying to sell you something on a box.
37:13
Speaker 4: Yeah, and now it's protein and the country's literally running
37:16
Speaker 4: out of way put tea.
37:17
Speaker 2: I do also believe, and I've said this before, and
37:19
Speaker 2: this again my personal view, the bean is the pinnacle.
37:24
Speaker 3: Yes of food.
37:25
Speaker 5: Yes, well, that's wildly popular right now too.
37:28
Speaker 3: I gotta tell you, I am very pro bean.
37:31
Speaker 4: There is a study out of Europe recently that I
37:33
Speaker 4: read where even things that you would think might be healthy,
37:37
Speaker 4: like hey, we want to get rid of artificial food dies,
37:40
Speaker 4: So we're taking the color from naturally, extracting it from
37:42
Speaker 4: carrots and putting into other food caused all sorts of
37:45
Speaker 4: health issues.
37:46
Speaker 3: Yes, Michael, because natural. I've said this before.
37:50
Speaker 2: If you guys think that natural is good, then cocaine
37:54
Speaker 2: must not be bad. Hell you okay, just because it
37:59
Speaker 2: comes from a pine ant or nature does not inherently
38:01
Speaker 2: make it good. You eat the wrong mushroom, you die,
38:07
Speaker 2: You cut.
38:07
Speaker 3: The bullfish wrong dead. You gotta pay attention to this stuff.
38:13
Speaker 3: Learn that one from the Simpsons.
38:15
Speaker 2: We're gonna take a quick break and eat some food,
38:17
Speaker 2: and when we come back tomorrow we'll tell you how
38:19
Speaker 2: we're feeling