Latest / Ron Verb / Thursday 6pm hour 05/21/26

Transcript

Thursday 6pm hour 05/21/26 · Ron Verb

• 0:00
  Speaker 1: All right, as we do on Thursdays on NewsRadio 570 WKBN,
• 0:04
  Speaker 1: John Arnold's back with another segment of Money Talks. You'll
• 0:09
  Speaker 1: be with us for 30 minutes, and then we'll get
• 0:12
  Speaker 1: to know.
• 0:13
  Speaker 2: Well, explain.
• 0:14
  Speaker 1: You'll be with us 30 minutes. Then what happens, John,
• 0:16
  Speaker 1: so our listeners are well aware? Where did he go? Somewhere, somehow.
• 0:25
  Speaker 3: No.
• 0:26
  Speaker 1: We thought he would be on that phone line, but
• 0:29
  Speaker 1: I do not hear him. Isn't that interesting? All right, well,
• 0:37
  Speaker 1: we'll try it again. We should have John Arnold with
• 0:40
  Speaker 1: us momentarily. Our connection obviously didn't pan out. All right,
• 0:45
  Speaker 1: so let me try it right here. John, are you there?
• 0:49
  Speaker 4: Hey, can you hear me?
• 0:50
  Speaker 1: I can hear you now. All right. There you go.
• 0:53
  Speaker 1: Let me back up at six or six and stay.
• 0:55
  Speaker 1: You'll be with us for a half an hour. And
• 0:57
  Speaker 1: then what happens the second half hour, just so people
• 1:00
  Speaker 1: understand on the program, we'll have an, yeah, go ahead.
• 1:04
  Speaker 4: Hey, I'm bringing on, uh, I can't use the last
• 1:06
  Speaker 4: name forever marketing compliance person, but bringing on one of
• 1:10
  Speaker 4: the chief marketing strategists along with me that makes the
• 1:14
  Speaker 4: investing decisions for vision 2030 fund is amazing guy.
• 1:17
  Speaker 2: Um, Obviously, I'll be candid.
• 1:20
  Speaker 4: I think I'm as good as anybody in the business,
• 1:21
  Speaker 4: but this guy that I'm bringing on who helps me
• 1:24
  Speaker 4: manage the money is better than me. He's going to
• 1:26
  Speaker 4: be making around 60% of the investment decisions for the fund,
• 1:30
  Speaker 4: and I'm proud to bring him on. His name is Steve,
• 1:33
  Speaker 4: and he'll be coming on the second half of the show.
• 1:35
  Speaker 4: I'm going to let you kind of interrogate him and
• 1:37
  Speaker 4: let him tell a story. Tell how you finished sixth
• 1:40
  Speaker 4: in the nation in investing as far as measurement goes
• 1:43
  Speaker 4: and go from there.
• 1:44
  Speaker 1: Let's talk a little bit in the beginning of the
• 1:46
  Speaker 1: program so people understand. You have started something that you've
• 1:51
  Speaker 1: always wanted to, which is, so everyone understands, your own
• 1:55
  Speaker 1: hedge fund. And when you talk about the Vision Fund,
• 1:59
  Speaker 1: I think you said the Vision 2030 Fund, it's your
• 2:03
  Speaker 1: own hedge fund. I want you to talk a little
• 2:06
  Speaker 1: bit about why you started it once again and how
• 2:09
  Speaker 1: you get into it, and how it's going to operate
• 2:13
  Speaker 1: for our listeners.
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  Speaker 4: Well, when I kind of got, you know, the reins,
• 2:19
  Speaker 4: when I started understanding investing and money management and how
• 2:23
  Speaker 4: important it was, I got to be pretty good at it.
• 2:26
  Speaker 2: I learned technical.
• 2:27
  Speaker 4: Analysis and tactical allocation, and I was able to give,
• 2:31
  Speaker 4: you know, potential clients and clients more than just, hey,
• 2:34
  Speaker 4: hang in there, or, you know, the mark goes up,
• 2:37
  Speaker 4: the mark goes down, and it's average this from 1929,
• 2:39
  Speaker 4: the same old BS that every financial guy gives everybody.
• 2:43
  Speaker 4: And there's a lot of people out.
• 2:45
  Speaker 1: You were never a set it and forget it guy.
• 2:48
  Speaker 4: Never, never. Because honestly, there's two reasons from a, from
• 2:52
  Speaker 4: a greed standpoint. You know, I started the business really young,
• 2:56
  Speaker 4: and I was going against guys that look like me
• 2:58
  Speaker 4: now and.
• 2:58
  Speaker 1: Was getting completely, you.
• 3:00
  Speaker 4: Know, getting killed. Like, who's going to give a 24-year-old
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  Speaker 4: guy his money, his entire life savings? So the only
• 3:07
  Speaker 4: thing I could do.
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  Speaker 2: Is be different.
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  Speaker 4: So I learned how to manage money on a tactical basis.
• 3:12
  Speaker 4: So I brought someone to the table that was different.
• 3:14
  Speaker 4: And then the other part is, is like we talked
• 3:16
  Speaker 4: about in the previous two decades, is I didn't want
• 3:18
  Speaker 4: to be that guy. I couldn't understand why people would
• 3:21
  Speaker 4: pay people commissions because to do something they could do
• 3:23
  Speaker 4: on their own at Vanguard or Fidelity. To this day,
• 3:26
  Speaker 4: it's complete bizarre mania to me. I just can't understand that.
• 3:31
  Speaker 4: And so they rely on that whole, you know, my
• 3:33
  Speaker 4: competition or BSO, you know, you're in it for the relationship.
• 3:37
  Speaker 4: I tell people, you want a relationship, go to the
• 3:40
  Speaker 4: lake club, join a bowling league.
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  Speaker 2: If you want to make money, find a guy who
• 3:44
  Speaker 2: manages money and be happy with that.
• 3:46
  Speaker 1: But actively manages money, actively manages money. Over the years,
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  Speaker 1: how many times have you and I talked over the
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  Speaker 1: years where people would go, they'd go, they'd get an investment,
• 3:57
  Speaker 1: they would, here's some money, they would put it in
• 4:00
  Speaker 1: some fund and forget about it because they'd be out
• 4:02
  Speaker 1: trying to find new money all of a sudden that
• 4:05
  Speaker 1: seemed to be more important than your money. And you
• 4:08
  Speaker 1: kind of honed your craft by actively managing people's money.
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  Speaker 4: Yeah, there was a Greek component to that as well.
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  Speaker 4: I've been in sales since I was 14, you know,
• 4:19
  Speaker 4: when they were selling the Vindicator or memberships of Valley
• 4:23
  Speaker 4: Soda Fitness or Accuracy, blah, blah. I just... When you're
• 4:27
  Speaker 4: a salesperson, you get tired of selling. So when I
• 4:29
  Speaker 4: got in this business, I was initially selling life insurance
• 4:32
  Speaker 4: and annuities and mutual funds, and that just wasn't my game.
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  Speaker 2: And I was like, you know what?
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  Speaker 4: What I really want to do is I want to
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  Speaker 4: carry the ball into the end zone.
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  Speaker 2: I want it on me. I want to manage money.
• 4:43
  Speaker 4: And so eventually I learned how to manage money, so
• 4:45
  Speaker 4: I didn't have to do that set and forget it
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  Speaker 4: BS because, honestly, that's not me. I really don't care
• 4:50
  Speaker 4: how somebody's day is going, and I don't want to
• 4:52
  Speaker 4: send them a Christmas card as my investment strategy. I
• 4:55
  Speaker 4: actually want to give them an investment strategy. I want
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  Speaker 4: to do something proactive and put guardrails in the market
• 5:01
  Speaker 4: in bad times. So that was me, and that's what
• 5:03
  Speaker 4: I learned to do. And now that I sold the
• 5:07
  Speaker 4: firm to Rockport, those guys are doing a good job,
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  Speaker 4: great job, and that allowed me to open my hedge fund,
• 5:12
  Speaker 4: which has been my lifelong dream. So the hedge funding
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  Speaker 4: is even more man in the arena, which means markets
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  Speaker 4: go up, markets go down. Clients don't care if markets
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  Speaker 4: are up or down.
• 5:24
  Speaker 2: You have to give them..
• 5:25
  Speaker 4: Positive performance at the end of the month. So I
• 5:27
  Speaker 4: was trying to describe this to the people that are
• 5:30
  Speaker 4: getting into the fund. It's more like me as a CEO,
• 5:34
  Speaker 4: and they're the board of directors. And for me to
• 5:37
  Speaker 4: stay employed as a CEO, I have a board of
• 5:39
  Speaker 4: directors meeting at the end of every month, and I
• 5:41
  Speaker 4: have to tell them, here's the results of the fund.
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  Speaker 4: Here's what we anticipate. Here's what it did. Here's the
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  Speaker 4: average return. Here's the return on, here's the expenses. Here's
• 5:52
  Speaker 4: the cost.
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  Speaker 2: Excuse me. Here's the assets.
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  Speaker 4: Here's the final return on investment for the month, which
• 5:58
  Speaker 4: is the NAV. And that is beautiful. I'm only allowed
• 6:01
  Speaker 4: 99 investors plus me, so I can manage relationships a
• 6:05
  Speaker 4: lot more closely. I can be me and just absolutely just.
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  Speaker 2: Kick ass on the investments.
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  Speaker 4: And I love delivering a no-excuse policy. You know, at
• 6:14
  Speaker 4: the end of the month, at the end of June,
• 6:15
  Speaker 4: when it comes down to the NAV, if we haven't performed...
• 6:18
  Speaker 4: It comes down on John Arnold. It's not because the
• 6:20
  Speaker 4: market was bad or it wasn't because I didn't take
• 6:22
  Speaker 4: the client golfing enough or any of the other BS
• 6:25
  Speaker 4: that comes with investing money. It's because I didn't perform.
• 6:28
  Speaker 4: And I'm willing to take that on the chin and
• 6:30
  Speaker 4: I'm ready to give a client an answer. Hey, this is,
• 6:33
  Speaker 4: we might not get as well as we thought in June,
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  Speaker 4: but here's my strategy for going in to July and
• 6:38
  Speaker 4: to August and what we see forthcoming in the future dates. And,
• 6:41
  Speaker 4: you know, hopefully you don't fire me in the meantime. So,
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  Speaker 4: That's why I opened up the hedge fund. It's cutting
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  Speaker 4: edge in New York and Chicago. There's a billion of them,
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  Speaker 4: but here in Northeast Ohio, very little. And I'm going
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  Speaker 4: to put my head on the trot block and carry
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  Speaker 4: the ball.
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  Speaker 1: Right now, there's 100 openings. Many of them have been taken.
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  Speaker 1: Give the criteria for people to get into. This is
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  Speaker 1: your hedge fund managed specifically by you on a... daily
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  Speaker 1: and hourly basis or whatever, managed by you. And what's
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  Speaker 1: the criteria for folks to get in?
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  Speaker 4: Listen, you got one of three criteria to meet, one of.
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  Speaker 4: You have to have a million dollars in assets outside
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  Speaker 4: of your permanent residence. So if you have a business
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  Speaker 4: that's evaluated or you have a bunch of rental properties
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  Speaker 4: or commercial real estate, you can use that as part
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  Speaker 4: of your assets.
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  Speaker 2: I just can't use your home.
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  Speaker 4: Or $ 200, 000 in income for you, or if you're going
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  Speaker 4: to do a joint with Rights for Survivorship, $ 300, 000 in income,
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  Speaker 4: or the ability to just put $ 200, 000 in at once. Now,
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  Speaker 4: we kind of shy away from that because we don't
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  Speaker 4: want people putting their own. There are only $ 200, 000 in that,
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  Speaker 4: but that is something that we can fine line on
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  Speaker 4: the regulators, but choose not to.
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  Speaker 1: But here's the thing.
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  Speaker 4: We've been getting a lot of subscribers. But we require
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  Speaker 4: the people to prove to us that they have the assets.
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  Speaker 4: So we've had to turn a couple people away, unfortunately,
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  Speaker 4: that said they had some sort of kind of income,
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  Speaker 4: and when they put their taxes together, not the case. So,
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  Speaker 4: you know, we're not taking shortcuts. We have a system
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  Speaker 4: through Ripple to where there is no shortcuts, even if
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  Speaker 4: you wanted to. So it's a proof-in-the-pudding type scenario. But
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  Speaker 4: you alluded to something that's great. I've got to tell you,
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  Speaker 4: I never in a million years thought this was going
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  Speaker 4: to be as popular.
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  Speaker 2: And I was going to be as busy as I was.
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  Speaker 4: The subscriptions are literally flying off the shelf. Like, we're
• 8:45
  Speaker 4: getting probably every half an hour a new subscriber. So
• 8:50
  Speaker 4: we have a backup plan. I want to tell folks that.
• 8:53
  Speaker 1: Why does that surprise you and it doesn't surprise me?
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  Speaker 1: That's what I find odd.
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  Speaker 3: Well, let's be realistic.
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  Speaker 1: I mean, let's be true. I'm not surprised by that
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  Speaker 1: at all.
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  Speaker 2: I am. I am.
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  Speaker 4: Because when you hear the term hedge fund, you.
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  Speaker 2: Think risk, right?
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  Speaker 3: And there is risk.
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  Speaker 4: There's high risk. And when you're bringing that kind of
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  Speaker 4: entity to our area, you know, who loves fixed annuities
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  Speaker 4: and CDs and think that's a good investment, that's... You know,
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  Speaker 4: I thought it was going to be a hard sell,
• 9:27
  Speaker 4: to be honest with you. And surprisingly, I've been... I
• 9:31
  Speaker 4: unfortunately haven't turned some people away. So I, you know,
• 9:34
  Speaker 4: it's mind blowing to me. I think, I guess maybe
• 9:36
  Speaker 4: my perception of me being as popular as I think
• 9:40
  Speaker 4: I am is wrong. Uh, I'm definitely very popular and
• 9:42
  Speaker 4: there's definitely a following and a brand and a culture
• 9:45
  Speaker 4: and I'm proud of it.
• 9:46
  Speaker 2: And, and, and I couldn't be happier.
• 9:48
  Speaker 4: I really can't, I can't get the smile off my
• 9:49
  Speaker 4: face and just so proud. And I have a backup
• 9:53
  Speaker 4: plan to, you know, this is going to be fully
• 9:55
  Speaker 4: subscribed here soon. So we're creating backup plans to get
• 9:58
  Speaker 4: people that are waiting again. So, if you're listening out there,
• 10:02
  Speaker 4: don't worry. We have a plan.
• 10:03
  Speaker 3: Right.
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  Speaker 1: Don't you think the reason for that is to talk
• 10:07
  Speaker 1: in a roundabout way you made a lot of people
• 10:09
  Speaker 1: over the years very happy?
• 10:12
  Speaker 4: I would agree with that. But, you know, you've got
• 10:13
  Speaker 4: to remember, I think, like I said, I can't remember
• 10:16
  Speaker 4: the number.
• 10:17
  Speaker 1: Well, I mean, I don't like to complicate things. I
• 10:20
  Speaker 1: would just say that that would be my thought. Let's
• 10:25
  Speaker 1: just put it that way.
• 10:26
  Speaker 4: Well, I appreciate the compliment, but I try to be
• 10:29
  Speaker 4: as real as I can get on the radio. And
• 10:32
  Speaker 4: I thank the investors and subscribers, which are called the LPs,
• 10:35
  Speaker 4: and thanks for the confidence. I had no idea you
• 10:38
  Speaker 4: were that confident in me, but thank you.
• 10:39
  Speaker 1: All right, so it's when there's 100 people in total
• 10:45
  Speaker 1: in the hedge fund, 100, then that's it. And so
• 10:50
  Speaker 1: it can take no more at that point. But the
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  Speaker 1: criteria is that you have to have a million dollars
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  Speaker 1: in assets outside of your house, which a lot of
• 11:01
  Speaker 1: people that might not apply to them. You have to
• 11:05
  Speaker 1: have a $ 200, 000 a year income or more, correct? From
• 11:11
  Speaker 1: your job or whatever. Or $ 300, 000. you can have up
• 11:15
  Speaker 1: to $ 200, 000 that you can put into the fund. You
• 11:20
  Speaker 1: can put in less than that? Explain that to us.
• 11:23
  Speaker 1: A little confused there.
• 11:24
  Speaker 4: Well, here's the confusing part. If you can't show that
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  Speaker 4: you make $ 200, 000 or.
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  Speaker 2: $ 1 million in assets, but you have the ability to.
• 11:32
  Speaker 4: Put $ 200, 000 in at once, that could, with a keyword C-word,
• 11:37
  Speaker 4: could satisfy the regulatory industry. But we try to shy
• 11:42
  Speaker 4: away from that, and right now we don't have a
• 11:43
  Speaker 4: need to really accept that fine line, so we're kind
• 11:47
  Speaker 4: of turning that away. But that is one of the criteria.
• 11:49
  Speaker 4: But that's a fine line. I don't like to do that.
• 11:52
  Speaker 4: If someone can't show me they have the income or
• 11:55
  Speaker 4: the assets, I probably tell them, let's hold.
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  Speaker 2: Until you do.
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  Speaker 4: But that is one of the three requirements for what's
• 12:01
  Speaker 4: called a.
• 12:02
  Speaker 2: 3C1 fund, which is what I am.
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  Speaker 1: All right, so these are requirements that aren't your requirements.
• 12:07
  Speaker 1: It's the requirements of what's the..
• 12:10
  Speaker 2: The Securities Exchange Commission.
• 12:12
  Speaker 1: For you to have the hedge fund. These are their
• 12:14
  Speaker 1: requirements to say these are the three requirements that you
• 12:17
  Speaker 1: have to have for the hedge fund that you have. Correct?
• 12:20
  Speaker 4: That's correct. That's correct. Now, you know, government entities with
• 12:23
  Speaker 4: three-letter acronyms, I stay away from them. I want out
• 12:26
  Speaker 4: of their doghouse. So we don't even look that way. Like,
• 12:31
  Speaker 4: if they're even borderline in dangers, me having to deal
• 12:34
  Speaker 4: with an auditor, a regulator, no thank you. I want
• 12:36
  Speaker 4: nothing to do with it. So we just keep it
• 12:38
  Speaker 4: straight and basic and to the point and go from there.
• 12:42
  Speaker 1: One other question, and then I want to get to
• 12:44
  Speaker 1: the market activity today. When people are into the hedge fund,
• 12:49
  Speaker 1: let's talk about the custody of the assets as far
• 12:52
  Speaker 1: as how does that work? I mean, just so people understand,
• 12:56
  Speaker 1: it isn't– just explain that process.
• 13:01
  Speaker 4: Yeah, this is an important subject. This is probably one
• 13:04
  Speaker 4: of the most important subjects you ever talked about in
• 13:07
  Speaker 4: the 40 years of doing radio. And that's because custody requires...
• 13:12
  Speaker 4: This is where people get scammed, legitimately. Bernie Madoff ran
• 13:15
  Speaker 4: his scam because he was custodying.
• 13:18
  Speaker 2: His own assets.
• 13:20
  Speaker 4: But you only hear about Bernie Madoff because he had
• 13:23
  Speaker 4: crazy wealth, like billions of dollars out of Palm Beach.
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  Speaker 4: But what you don't know is the people... There's people
• 13:29
  Speaker 4: like Bernie Madoff on a way smaller scale that are
• 13:31
  Speaker 4: scamming clients. And that is because they are custodying assets
• 13:36
  Speaker 4: or having the client custody the assets of their own
• 13:39
  Speaker 4: personal firm, which is something I'm allowed to do, but
• 13:42
  Speaker 4: I won't do. So let me take you through the chain.
• 13:45
  Speaker 4: If you would invest money with me in my former firm,
• 13:48
  Speaker 4: General Wealth Management, and I accepted a check to General
• 13:51
  Speaker 4: Wealth Management, I then have an obligation to show an
• 13:54
  Speaker 4: auditor or the client that where that check went. So
• 13:58
  Speaker 4: it goes in the general information business account, and then
• 14:01
  Speaker 4: maybe we put money into a real estate venture, a franchise,
• 14:05
  Speaker 4: we bought a business, or what I did, we put
• 14:09
  Speaker 4: the money in TD Ameritrade or Trosh Schwab and bought investments.
• 14:12
  Speaker 4: So that's legal.
• 14:14
  Speaker 2: You're allowed to do that. I didn't do that.
• 14:17
  Speaker 4: I didn't take checks made directly payable to general information
• 14:21
  Speaker 4: because I never at one time wanted to custody assets.
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  Speaker 4: And I'll tell you the reason why in a second, twofold.
• 14:29
  Speaker 4: But checks were made payable to TD Ameritrade directly or NFS,
• 14:33
  Speaker 4: which is Fidelity, or Charles Schwab, who ended up being
• 14:37
  Speaker 4: our major custodian at the end, or in after brokers, wherever.
• 14:40
  Speaker 4: But the check was always made payable to the custodian
• 14:44
  Speaker 4: because I didn't want my hands or the ability to
• 14:46
  Speaker 4: get to their money. In addition to that, I didn't
• 14:49
  Speaker 4: want my staff to have the ability to get to
• 14:51
  Speaker 4: that money. Now, here's the reason why, fast forward, that
• 14:54
  Speaker 4: ended up being so important for me, John Arnold General
• 14:59
  Speaker 4: Management Company, is because I would take a lot of
• 15:02
  Speaker 4: business off investment people around our area, and the clients
• 15:06
  Speaker 4: would say, well, he obviously must be successful.
• 15:09
  Speaker 2: He has this big house. He has exotic cars. He
• 15:11
  Speaker 2: has a beautiful family.
• 15:12
  Speaker 4: All the things that aren't important to me, but they
• 15:14
  Speaker 4: are important to them. So the competition would say stupid
• 15:19
  Speaker 4: crap like, well, he's just funding his lavish lifestyle by
• 15:22
  Speaker 4: taking money out.
• 15:23
  Speaker 2: Of his clients' accounts.
• 15:24
  Speaker 4: That's literally physically impossible. That was physically impossible. And for
• 15:29
  Speaker 4: the desperate advisors out there that had to say that,
• 15:33
  Speaker 4: I feel bad for them for being so desperate and stupid.
• 15:35
  Speaker 4: But for the people who actually believe that, the potential clients,
• 15:39
  Speaker 4: I feel really bad for them because they were really dumb.
• 15:42
  Speaker 4: I mean, if you believe that I could just go
• 15:44
  Speaker 4: for decades and do that and not get caught, you're
• 15:46
  Speaker 4: really dumb. So fast forward. So when people have said
• 15:51
  Speaker 4: that and come to me and said, well, who's a
• 15:53
  Speaker 4: checkmate payable to Charles Schwab? Where does the rollover go
• 15:57
  Speaker 4: from Fidelity or wherever you're willing your money to Charles Schwab?
• 16:00
  Speaker 4: So how physically could I get your money if what these–
• 16:05
  Speaker 4: competitors are saying is true. And they would say, you're right,
• 16:08
  Speaker 4: and they would look stupid and be like, you know what,
• 16:10
  Speaker 4: that was dumb of me to even ask the question.
• 16:12
  Speaker 4: But it wasn't dumb of them because they were just
• 16:15
  Speaker 4: trying to protect themselves. Now, for the people who assume
• 16:18
  Speaker 4: that and just start not investing with me without asking,
• 16:21
  Speaker 4: that was dumb. But why I'm telling you that is
• 16:23
  Speaker 4: because there are investors out there, people like me, that
• 16:27
  Speaker 4: will take money and custody the assets from their own
• 16:29
  Speaker 4: personal account, And like Bernie Madoff did, will just take
• 16:33
  Speaker 4: that money and put it in their own personal account.
• 16:35
  Speaker 4: So they'll put the money into, say, Bernie Madoff Securities,
• 16:38
  Speaker 4: which he did.
• 16:39
  Speaker 2: He then had an.
• 16:39
  Speaker 4: Obligation to put the money into Pershing, which is the
• 16:42
  Speaker 4: custodian for the brokerage, for the stocks and the bonds,
• 16:47
  Speaker 4: to put it mildly. And then he would then make
• 16:50
  Speaker 4: fake statements so the clients thought that money was still,
• 16:53
  Speaker 4: was really in Pershing, but meanwhile moving the money personally
• 16:56
  Speaker 4: to his own personal account. How in the world he got..
• 17:01
  Speaker 2: Because you get an audit every year, every two years.
• 17:03
  Speaker 2: It's mandatory.
• 17:04
  Speaker 4: How he got past the regulators and auditors, no one
• 17:07
  Speaker 4: will ever know. But my bottom line is, in teaching
• 17:11
  Speaker 4: the clients, when you custody assets, if you're custodying assets
• 17:16
  Speaker 4: with your advisor.
• 17:17
  Speaker 2: Personally, you are.
• 17:19
  Speaker 4: Putting yourself in major danger.
• 17:21
  Speaker 2: Don't do it.
• 17:23
  Speaker 4: They're allowed to do it, but don't do it. Make
• 17:26
  Speaker 4: sure you custody assets with what's called a broker-dealer, Fidelity,
• 17:31
  Speaker 4: Charles Schwab, Interactive Brokers, Wells Fargo, Bank of America, et cetera.
• 17:37
  Speaker 4: Those are the people that are safeguarding your money from
• 17:40
  Speaker 4: people like me to make sure it can't be fraud
• 17:41
  Speaker 4: or stolen. Every once in a while someone figures out
• 17:45
  Speaker 4: how to game the system.
• 17:47
  Speaker 2: I don't know how. I'm not that smart, but they do.
• 17:50
  Speaker 4: There's probably one-tenth of 1% that can do it, but
• 17:53
  Speaker 4: I don't know how they're doing. But generally speaking, make
• 17:57
  Speaker 4: sure your accounts are held at the bank or the broker-dealer,
• 18:00
  Speaker 4: not with your personal financial advisor. And if they are
• 18:03
  Speaker 4: held with your personal financial advisor, do what a regulator
• 18:05
  Speaker 4: makes you do. Make sure you see the auditor statement.
• 18:08
  Speaker 4: The auditor statement shows where the money started and where
• 18:11
  Speaker 4: the money ended. So I'll give you an example, my
• 18:13
  Speaker 4: former firm. You put money in the general wealth management.
• 18:17
  Speaker 4: I got to show the other. This went through to
• 18:20
  Speaker 4: this particular escrow bank to buy this real estate. It
• 18:23
  Speaker 4: went through to buy this franchise. And there's a trail,
• 18:27
  Speaker 4: a money trail, proving that. Needless to say, I would
• 18:29
  Speaker 4: never do that, and I never did that. But the
• 18:32
  Speaker 4: key to.
• 18:33
  Speaker 2: This program is education.
• 18:34
  Speaker 4: And when I tell you something, educating people on custody
• 18:39
  Speaker 4: of assets is probably the most important thing we have
• 18:42
  Speaker 4: ever talked about in this program.
• 18:45
  Speaker 1: Absolutely. So anyway, when you get in, the money goes
• 18:50
  Speaker 1: through Charles Schwab or whatever into your hedge funds, correct?
• 18:56
  Speaker 4: Well, let me back up. The money goes, let me
• 18:59
  Speaker 4: tell you, from the hedge fund procedure is so much
• 19:01
  Speaker 4: more compliant. It's so much stricter. First of all, the
• 19:03
  Speaker 4: client has to go through our third-party administrator, which is Repool.
• 19:07
  Speaker 4: So they fill out the information.
• 19:09
  Speaker 2: I don't.
• 19:09
  Speaker 4: That way there's nobody forging your information. So they do
• 19:12
  Speaker 4: it directly. Then it goes to the federal... I don't know,
• 19:15
  Speaker 4: there's an investigative department in the federal government that Ripple
• 19:18
  Speaker 4: has called KYC and AML, called Know Your Client, and
• 19:23
  Speaker 4: then called AML, which is anti-money laundering. That's to make
• 19:26
  Speaker 4: sure the investor is not a terrorist or a money launderer.
• 19:29
  Speaker 4: So I'm just making something up. I don't know if
• 19:32
  Speaker 4: it's true. Let's say they got FBI approval saying, hey,
• 19:34
  Speaker 4: the investor is not on an anti-money laundering list. He's
• 19:38
  Speaker 4: not on a fraud list. He's not a terrorist. So
• 19:42
  Speaker 4: we're going to give them permission to go to the
• 19:44
  Speaker 4: next step. The next step is we have Mercury Bank,
• 19:48
  Speaker 4: which is a ridiculously big bank. that only deals in
• 19:51
  Speaker 4: businesses and hedge fund accounts. They wire the money directly
• 19:56
  Speaker 4: to Mercury Bank. Skip me altogether. Pulled by repo. Mercury
• 19:59
  Speaker 4: Bank then wires the money to Interactive Brokers. Interactive Brokers
• 20:03
  Speaker 4: is a huge custodian for hedge funds and individual investors,
• 20:06
  Speaker 4: and that's where the fund is. But the key denominator
• 20:10
  Speaker 4: here is John Arnold doesn't have access to your account numbers,
• 20:13
  Speaker 4: your routing numbers, or wire. It is not facilitated for me.
• 20:18
  Speaker 4: If someone put a gun to my head and said, John,
• 20:20
  Speaker 4: give me all $ 100 million of your money in your
• 20:23
  Speaker 4: vision fund, I would die because I don't have access
• 20:26
  Speaker 4: to do it. So the key importance to the message here,
• 20:29
  Speaker 4: what you just said is, Money's going to flow directly
• 20:32
  Speaker 4: from Ripple, third-party management, to Mercury Bank, to interactive brokers directly.
• 20:37
  Speaker 4: If a client wants their money back, the same procedure.
• 20:40
  Speaker 4: I can't get the money directly back from me. I
• 20:43
  Speaker 4: have to go through the administrators to do it. And
• 20:46
  Speaker 4: that's a security blanket, an ironclad one to make sure
• 20:49
  Speaker 4: the clients can't be frauded, for me anyway. So, you know,
• 20:53
  Speaker 4: I wanted to make that clear because there's a lot
• 20:54
  Speaker 4: of stupid rumor mills and stupid people out there that,
• 20:57
  Speaker 4: you know, they believe the nonsense or.
• 20:58
  Speaker 2: Whatever, and it's so ridiculous, but... Right there is.
• 21:02
  Speaker 4: The bottom line truth, right from an investing one-on-one Bible.
• 21:06
  Speaker 5: Right.
• 21:07
  Speaker 1: Do you remember if I spin the clock back, I
• 21:09
  Speaker 1: think there was a time when you complimented, I think,
• 21:13
  Speaker 1: Elizabeth Warren at the time because wasn't she one of
• 21:15
  Speaker 1: the key people in making, outside of this, the fiduciary requirements?
• 21:20
  Speaker 1: In other words, you have to operate in the client's
• 21:23
  Speaker 1: best interest. And you were on board with that from
• 21:27
  Speaker 1: the beginning.
• 21:28
  Speaker 4: I still am. Now, they watered it down a little
• 21:31
  Speaker 4: bit because it's not a mandatory thing. Again, when it
• 21:35
  Speaker 4: comes to things, when it comes to money, I don't
• 21:37
  Speaker 4: care what side of the politics you are on what's
• 21:39
  Speaker 4: for the client. That fiduciary rule was brilliant. That was
• 21:43
  Speaker 4: something that was honorable and I think a must. And
• 21:45
  Speaker 4: what that did is that forced people to go from
• 21:47
  Speaker 4: putting some people into commission-based stuff just because they wanted
• 21:51
  Speaker 4: a commission to proving to a regulator that this was
• 21:54
  Speaker 4: in the best interest of the client. And it forced
• 21:57
  Speaker 4: people to go mostly to fee-based for commissions. So that
• 21:59
  Speaker 4: was a beautiful thing. And I give both Barack Obama,
• 22:02
  Speaker 4: President Barack Obama, and Elizabeth Warren credit for that because
• 22:05
  Speaker 4: they initiated that and took it to the line. Now
• 22:07
  Speaker 4: the Supreme Court eventually rejected it. But what happened is
• 22:10
  Speaker 4: most investment firms, FINRA and the SEC, really put the
• 22:15
  Speaker 4: line in the sand saying, we're going to adhere to
• 22:16
  Speaker 4: the fiduciary duty regardless.
• 22:18
  Speaker 2: And that was a good thing. That was a great thing.
• 22:22
  Speaker 1: Absolutely. Now, all right, so if people are interested in
• 22:26
  Speaker 1: getting into the hedge fund, if they meet that criteria
• 22:31
  Speaker 1: and they want to get into the hedge fund, how
• 22:33
  Speaker 1: do they go about finding, exploring it?
• 22:38
  Speaker 2: Okay.
• 22:38
  Speaker 4: Ron, I got the number.
• 22:40
  Speaker 2: I promise.
• 22:41
  Speaker 4: Give us a call, 330-288-7709.
• 22:42
  Speaker 2: Again, 330- 288-7709.
• 22:50
  Speaker 4: That will forward to my cell phone. If that doesn't
• 22:54
  Speaker 4: pick up, we're eventually going to get some staff to
• 22:56
  Speaker 4: pick that up, but right now it doesn't make sense.
• 22:58
  Speaker 4: Or you can email jon.arnold at theinvestment.coach. Again, jon.arnold at theinvestment.coach.
• 23:09
  Speaker 1: All right.
• 23:10
  Speaker 4: So with that said, you can potentially become a client.
• 23:12
  Speaker 2: All right.
• 23:13
  Speaker 1: Or an LP. Right, if you meet that criteria. What's
• 23:16
  Speaker 1: the phone number again, John, on that, please?
• 23:18
  Speaker 4: Okay. Sorry. 330-288-7709. Call at any time of the day.
• 23:26
  Speaker 2: We'll get back to you.
• 23:26
  Speaker 4: I look forward to hearing from you.
• 23:28
  Speaker 1: All right. I didn't even get to the stocks. I'm
• 23:31
  Speaker 1: going to run out of time here. I always am
• 23:34
  Speaker 1: interested in your economic standpoint on that. Maybe next week.
• 23:38
  Speaker 1: How's that sound for you?
• 23:39
  Speaker 4: Yeah, we'll go to it.
• 23:40
  Speaker 2: Enjoy, Steve. You're going to love it.
• 23:41
  Speaker 1: All right. Make sure he touches base with us. We'll
• 23:44
  Speaker 1: come back with Steve on segment two. Thank you, John.
• 23:48
  Speaker 2: All right. Thank you.
• 23:49
  Speaker 1: From NewsRadio 570 to WKBN. Back to the program momentarily.
• 23:53
  Speaker 1: Let me talk to you for just a second about
• 23:55
  Speaker 1: the good folks at Stadium GM in the heart of Salem.
• 23:59
  Speaker 1: where we purchased our cars back in 2017 with those
• 24:03
  Speaker 1: great Chevy Cruzes, and just recently with a Chevy Equinox.
• 24:06
  Speaker 1: Why Stadium GM? Locally owned and operated, not part of
• 24:09
  Speaker 1: some big conglomerate. I start by telling you that. Locally
• 24:13
  Speaker 1: owned and operated by Shorty Navarro, who's always had a
• 24:15
  Speaker 1: strategy of, we want your business, we want to keep it,
• 24:18
  Speaker 1: we want to get the rest of your family's business
• 24:20
  Speaker 1: for the future. And with that mentality... They deliver, and
• 24:24
  Speaker 1: that's why we're satisfied customers of Stadium GM, where they
• 24:28
  Speaker 1: carry all makes and all models, whether you want Cadillac, GMC, Buick,
• 24:34
  Speaker 1: or Chevrolet. They got it all under one roof, all
• 24:37
  Speaker 1: in the great area of Salem. One stop covers it all,
• 24:40
  Speaker 1: whether you're leasing or buying, new or used. Take a look, stadiumgm.com,
• 24:46
  Speaker 1: and visit the dealership. I think you'll find it as
• 24:48
  Speaker 1: refreshing as my family has done, and I share it
• 24:51
  Speaker 1: with your family, the good folks at Stadium GM in Salem.
• 24:55
  Speaker 1: All right, back with segment two. This is Money Talks
• 24:58
  Speaker 1: with John Arnold on NewsRadio 570 WKN. John stepped away,
• 25:03
  Speaker 1: and he has brought to us, I think Steve should
• 25:06
  Speaker 1: be on the end of my line, if I'm not mistaken. Steve,
• 25:09
  Speaker 1: are you there?
• 25:10
  Speaker 4: I am.
• 25:11
  Speaker 1: All right. Steve, first of all, thanks for coming on
• 25:14
  Speaker 1: the program. I appreciate you being with us. You are
• 25:18
  Speaker 1: part of this hedge funds that John has put together.
• 25:24
  Speaker 1: And he brags a great deal about your vision, if
• 25:32
  Speaker 1: you will. Let me talk a little bit. You get
• 25:38
  Speaker 1: to talk a little bit about the markets and... your
• 25:41
  Speaker 1: philosophies as far as the markets and trades and a
• 25:45
  Speaker 1: little bit about your backgrounds.
• 25:48
  Speaker 3: Sure. Well, first, a bit about my background. So I've
• 25:52
  Speaker 3: been active in the market since my teens when I
• 25:57
  Speaker 3: bought my first shares of stock and fell in love
• 26:02
  Speaker 3: with the market and the concept of here in our
• 26:06
  Speaker 3: great country, you can own a share of anything. America's
• 26:13
  Speaker 3: best companies? And how lucky are we to live in
• 26:17
  Speaker 3: this country where we can partake in the success of
• 26:22
  Speaker 3: the world's top companies? And to me, that's just a
• 26:25
  Speaker 3: fascinating concept that I absolutely love. So that's when I
• 26:33
  Speaker 3: first got started in the markets, but I actually took
• 26:36
  Speaker 3: a little detour because the Prior to starting this fund,
• 26:42
  Speaker 3: I founded two software companies, both very successful, and I
• 26:48
  Speaker 3: ran those for about 25 years. And so when those
• 26:53
  Speaker 3: got sold off, I chose to return to my first love.
• 26:58
  Speaker 3: So that's my quick background. As far as how I
• 27:04
  Speaker 3: like to approach the market, is one from a standpoint
• 27:08
  Speaker 3: that the market knows best. And I can do my
• 27:13
  Speaker 3: personal best when I listen to what the market says
• 27:16
  Speaker 3: and I follow where it tells me to go. I
• 27:22
  Speaker 3: like to say that the market is a train and
• 27:25
  Speaker 3: I am the caboose.
• 27:27
  Speaker 1: Mm-hmm. And how do you get that vision or that insight?
• 27:35
  Speaker 1: Is it just market analysis, market research, what we kind
• 27:38
  Speaker 1: of heard John talk about over the years?
• 27:42
  Speaker 2: Yeah.
• 27:42
  Speaker 3: So the great thing is that the market tells you
• 27:48
  Speaker 3: everything that you need to know. Now, there are lots
• 27:50
  Speaker 3: of funds out there. As you may have heard, most
• 27:54
  Speaker 3: funds fail.
• 27:55
  Speaker 4: And the reason is..
• 27:57
  Speaker 3: Because they're approaching the market from the standpoint that if
• 28:01
  Speaker 3: they do the most research, if they have the smartest
• 28:05
  Speaker 3: team of scientists and PhDs and Harvard grads and all
• 28:10
  Speaker 3: these really smart-sounding titles and so forth, that they can
• 28:17
  Speaker 3: figure out a way to beat the market, that they
• 28:20
  Speaker 3: can glean something that others don't know. And The truth
• 28:27
  Speaker 3: is that you simply can't. And that's why they tend
• 28:31
  Speaker 3: to fail. But we take a different type of approach.
• 28:38
  Speaker 3: And the way we look at it is that the
• 28:41
  Speaker 3: market tells us exactly where we need to focus. And
• 28:45
  Speaker 3: the way it tells us is that the leading stocks
• 28:49
  Speaker 3: are rather obvious. And they present themselves in such a...
• 28:55
  Speaker 3: a way where they are recognizable. We don't need to
• 28:59
  Speaker 3: really do a lot of deep research and background to
• 29:03
  Speaker 3: find out which ones those are. The leading stocks in
• 29:09
  Speaker 3: the market have substantial strength relative compared to the rest
• 29:17
  Speaker 3: of the market. And these stocks stick out like a
• 29:20
  Speaker 3: sore thumb. And if we train our focus on these stocks,
• 29:25
  Speaker 3: We're going to do exceedingly well. If we think we're
• 29:29
  Speaker 3: going to be able to do all sorts of research
• 29:31
  Speaker 3: and mathematics and have a room full of PhDs that
• 29:36
  Speaker 3: are going to somehow predict what the next great stock is,
• 29:40
  Speaker 3: is or the next great theme is, well, you're going
• 29:43
  Speaker 3: to fall into a trap that many others have fallen into,
• 29:48
  Speaker 3: and that is a trap door. And so I think
• 29:52
  Speaker 3: our approach is far superior because it respects the What
• 30:01
  Speaker 3: the market is saying, we simply latch on to the
• 30:05
  Speaker 3: leading stocks and we ride that wave. It is that simple.
• 30:11
  Speaker 1: You say it's that simple, but congratulations to you, placing
• 30:15
  Speaker 1: sixth in the nation for investing competition. Did you ever
• 30:20
  Speaker 1: fathom that that would be the case when you go
• 30:22
  Speaker 1: back to your beginnings of your IT companies, if you will,
• 30:28
  Speaker 1: and then shifting gears into this? Did you ever dream that, wow,
• 30:32
  Speaker 1: that's pretty impressive?
• 30:36
  Speaker 3: No, absolutely not. And as of for this year, through
• 30:41
  Speaker 3: the end of March, we're in second place. So we're
• 30:46
  Speaker 3: moving on up. And we entered the competition because we
• 30:53
  Speaker 3: knew that we could rank high because we really believe
• 30:58
  Speaker 3: in our system. and trust that it does work. In fact,
• 31:03
  Speaker 3: that's probably the number one thing behind any system is
• 31:08
  Speaker 3: that you need to believe that the system works because
• 31:12
  Speaker 3: there's going to be plenty of times where the market
• 31:15
  Speaker 3: is going to throw you a curveball, something is going
• 31:18
  Speaker 3: to come out of the blue, and it's going to
• 31:20
  Speaker 3: shake your faith. And if you don't really believe in
• 31:23
  Speaker 3: your system, then you're going to jump ship.
• 31:29
  Speaker 1: So in the vision funds that we're talking with John about,
• 31:35
  Speaker 1: you will be making 60% or more of the investing decisions?
• 31:41
  Speaker 2: That is correct. All right.
• 31:42
  Speaker 1: So in this vision fund. Now, do you look at
• 31:49
  Speaker 1: those and do those on a daily basis?
• 31:54
  Speaker 3: No. The goal here is to get situated in the
• 31:59
  Speaker 3: leaders of the market. And then goal number two is
• 32:03
  Speaker 3: to practice the second hardest skill, which is to sit
• 32:08
  Speaker 3: down and do nothing. Because the greatest thing that's going
• 32:12
  Speaker 3: to prevent you from making superior gains is jumping in
• 32:19
  Speaker 3: and out of stuff. And when you have a true
• 32:24
  Speaker 3: leader mindset, of the market, a game-changing stock that has
• 32:28
  Speaker 3: presented itself. You want to get a position. You want
• 32:34
  Speaker 3: to tier into it as you add tiers, as it
• 32:39
  Speaker 3: shows you a profit, and grow the position size as
• 32:46
  Speaker 3: it moves in your favor. And then you want to sit.
• 32:51
  Speaker 3: You want to sit and let the winners work. And
• 32:53
  Speaker 3: I think that's one of the fundamental differences between what
• 32:57
  Speaker 3: we do and what other funds do is that we
• 33:01
  Speaker 3: ride our winners. And other funds ride their losers. They
• 33:09
  Speaker 3: ride them down to zero. And the reason why is
• 33:13
  Speaker 3: because they have approached the market from a standpoint of,
• 33:16
  Speaker 3: doing deep research, and having an opinion about what should happen.
• 33:22
  Speaker 3: And rather than abandon their opinion when it proves not
• 33:27
  Speaker 3: to be true, they tend to double down when they're wrong.
• 33:32
  Speaker 3: For example, they might buy a stock. Let's say they're
• 33:36
  Speaker 3: in love with Netflix, and they do all sorts of
• 33:40
  Speaker 3: research that subscriber growth is supposed to happen And all
• 33:44
  Speaker 3: these great things are supposed to happen. And so they
• 33:47
  Speaker 3: get involved with Netflix. But then suddenly the price starts
• 33:53
  Speaker 3: going down. But they're still convinced that their research is right.
• 33:59
  Speaker 3: And now the price is even lower. So they take
• 34:02
  Speaker 3: on even more shares, happily so, thinking that now they're
• 34:05
  Speaker 3: acquiring them at a discount. And that soon, sometime in
• 34:11
  Speaker 3: the future, the market will... will reward them for their foresight.
• 34:18
  Speaker 3: And over time, the price keeps going down. And they
• 34:23
  Speaker 3: hold on to the loser, believing that they are right.
• 34:27
  Speaker 3: But meanwhile, the market is shouting that they are wrong.
• 34:31
  Speaker 3: And that's the absolutely incorrect way to do it. They've
• 34:35
  Speaker 3: approached it from a standpoint that they know best. So
• 34:38
  Speaker 3: the way we see it is that the market knows best.
• 34:42
  Speaker 3: which means that the market's going to present to us
• 34:44
  Speaker 3: the leading stocks, and we're going to get positioned in
• 34:49
  Speaker 3: what the market shows us. It's going to show us
• 34:51
  Speaker 3: because these are the strongest stocks in the market. They
• 34:55
  Speaker 3: show unrelenting strength, which means that when the market has
• 34:59
  Speaker 3: a red day or is down big, these stocks, maybe
• 35:04
  Speaker 3: they open now, they shoot right back up. When the
• 35:08
  Speaker 3: market is going through turmoil because of Headlines, war, oil, inflation,
• 35:14
  Speaker 3: this or that. These stocks get a little bit rocked,
• 35:17
  Speaker 3: but they bounce right back up. And that's the market
• 35:20
  Speaker 3: saying to us that these are leading stocks. These are
• 35:24
  Speaker 3: stocks that the institutions cannot get enough of, and they're
• 35:29
  Speaker 3: unwilling to let go of. And that is a powerful signal.
• 35:33
  Speaker 3: And so when we get positioned in one of those
• 35:38
  Speaker 3: and price starts to move in our favor, then we
• 35:41
  Speaker 3: add to it. We grow the position size. Now, if
• 35:46
  Speaker 3: we get started in a trade and it starts to
• 35:50
  Speaker 3: go against us, we're not going to add to it.
• 35:52
  Speaker 3: We're going to actually subtract. We're going to reduce that
• 35:55
  Speaker 3: size because that's a signal that maybe the market has
• 35:59
  Speaker 3: changed its mind or we are simply wrong. And one
• 36:03
  Speaker 3: of the great things that we can do is we embrace,
• 36:06
  Speaker 3: we accept the fact that we can be wrong. And
• 36:09
  Speaker 3: when the market tells us we're We are wrong. We
• 36:13
  Speaker 3: accept that answer and we move on to something else.
• 36:17
  Speaker 3: So once we get situated in the winners, we want
• 36:20
  Speaker 3: to let those work. We want to let the market
• 36:23
  Speaker 3: do its job. And these winners can go much further
• 36:28
  Speaker 3: than people think. I think one of the things that
• 36:32
  Speaker 3: investors suffer from is a lack of knowledge of the
• 36:39
  Speaker 3: history of of what leading stocks can do. They go
• 36:44
  Speaker 3: up much more than just 20% here, 50%. The average
• 36:50
  Speaker 3: market leader can go up fivefold, eightfold, tenfold, if not more.
• 36:56
  Speaker 3: So that's why it's important to, when you have a winner,
• 37:00
  Speaker 3: to just sit your butt down and to do absolutely nothing.
• 37:05
  Speaker 1: All right. Talking with Steve here tonight. Is it what
• 37:09
  Speaker 1: we're experiencing right now? You're a fascinating guy. What we're
• 37:13
  Speaker 1: experiencing right now, like I'm looking at the market was
• 37:17
  Speaker 1: up today. Dow was up to 76. S & P
• 37:20
  Speaker 1: was up 12. NASDAQ up 22. The Russell up 25.
• 37:22
  Speaker 1: VIX was down just slightly. But the headline Dow rises
• 37:29
  Speaker 1: more than 270 points to close at a record as
• 37:32
  Speaker 1: oil prices pull back. Are these difficult times now from
• 37:36
  Speaker 1: your standpoint as I listen to you? Are these some
• 37:40
  Speaker 1: of the most difficult times? Because I've been watching just
• 37:44
  Speaker 1: over a period of time. if I just dial back always,
• 37:47
  Speaker 1: tariff talk. Tariffs would be on. Tariffs would be off.
• 37:51
  Speaker 1: Stocks would go up. Stocks would go down. Just based
• 37:54
  Speaker 1: on the uncertainty of what's happening with tariffs. Now, peace
• 38:01
  Speaker 1: treaties eminent. Well, that was a month ago. And then
• 38:05
  Speaker 1: it was the next week it was eminent. Well, then
• 38:08
  Speaker 1: it's not. And I watch oil prices go up and
• 38:10
  Speaker 1: oil prices go down. And there seems to me to
• 38:13
  Speaker 1: be so much uncertainty about about what's going on in
• 38:18
  Speaker 1: the Middle East and the war and what's being said
• 38:21
  Speaker 1: and the economy as a whole. I mean, as prices
• 38:27
  Speaker 1: go up, just let me finish my, and I want
• 38:30
  Speaker 1: to get your reactions. As prices go up and I'm
• 38:32
  Speaker 1: paying more for a gallon of gas or I'm paying
• 38:34
  Speaker 1: more at the grocery store, I, Joe Bagadonis, have less
• 38:37
  Speaker 1: money in my pocket to spend elsewhere. You only got
• 38:40
  Speaker 1: so much and you got to make cutbacks. So it's
• 38:42
  Speaker 1: not a good thing with big inflation and with big
• 38:45
  Speaker 1: energy prices and what we see as big volatility. How
• 38:49
  Speaker 1: do you decipher all of that for me?
• 38:51
  Speaker 3: Yeah, those are great questions. And I absolutely love that
• 38:56
  Speaker 3: you asked that. So first of all, markets, especially bull markets,
• 39:04
  Speaker 3: climb a wall of worry. There's always going to be
• 39:08
  Speaker 3: something to worry about. There's always going to be a
• 39:13
  Speaker 3: bear case. There's going to be some distraction happening. There's
• 39:19
  Speaker 3: always something to latch onto to say this could blow
• 39:23
  Speaker 3: up and be very, very bad. And that's always going
• 39:27
  Speaker 3: to be the case. It's never going to be easy.
• 39:30
  Speaker 3: street where all the news is good and everything is,
• 39:34
  Speaker 3: you know, happy town. It doesn't work that way. There's
• 39:38
  Speaker 3: always something to give hesitation to cause pause to say, well, Well,
• 39:46
  Speaker 3: because of this, this, and this, and this, you know,
• 39:48
  Speaker 3: things aren't that good. And if you look around and
• 39:50
  Speaker 3: you look at the state of things where wages are, employment, prices,
• 39:57
  Speaker 3: the economy, oil, it's a bad picture. There's no doubt.
• 40:02
  Speaker 3: There's no doubt that is a concerning picture. However, however,
• 40:10
  Speaker 3: that those things are distractions. in a sense, because the
• 40:16
  Speaker 3: market already knows all of those things. It knows more
• 40:20
  Speaker 3: than you and I could ever read, information we could
• 40:24
  Speaker 3: ever consume. And so when we accept the fact that
• 40:29
  Speaker 3: the market knows all and sees all, the market also
• 40:36
  Speaker 3: is a future-looking device. It not only looks at today,
• 40:44
  Speaker 3: but it looks at what life will be like 12
• 40:47
  Speaker 3: to 18 months from now. And I think when we
• 40:50
  Speaker 3: look at it from that lens, that it helps to
• 40:52
  Speaker 3: make things a bit more clear, because it can be
• 40:55
  Speaker 3: kind of hard to get our head around, well, with
• 40:57
  Speaker 3: all this bad news, why is the market at highs?
• 41:01
  Speaker 3: With oil ripping, why are stocks on a whole doing well?
• 41:09
  Speaker 3: It doesn't make sense, and therefore our inclination is to say, well...
• 41:14
  Speaker 3: Maybe it's not a good time to get invested in
• 41:18
  Speaker 3: the market. Maybe the market has it wrong. Maybe this
• 41:21
  Speaker 3: is like this must be a trap. You know, this
• 41:24
  Speaker 3: must be a trap because with all this bad stuff,
• 41:26
  Speaker 3: you know, all this things happening within the macro world,
• 41:31
  Speaker 3: you know, in the market that high, that's a trap. Therefore,
• 41:34
  Speaker 3: I'm going to sit this one out. And that's the
• 41:36
  Speaker 3: wrong point of view. And the reason why is because
• 41:39
  Speaker 3: the market is a future-looking mechanism, which means that it
• 41:44
  Speaker 3: doesn't care about what's happening right now. We all know
• 41:46
  Speaker 3: what's happening right now. What's important is looking into the future,
• 41:51
  Speaker 3: what's happening 12 to 18 months from now. And investors
• 41:55
  Speaker 3: are getting situated for what is to come, not what
• 41:59
  Speaker 3: is or what has happened. So it's looking into the future.
• 42:05
  Speaker 3: And so when we remove today's news and say, okay, well,
• 42:09
  Speaker 3: the market is strong because the world 12 to 18
• 42:14
  Speaker 3: months from now is a different one. And that's the
• 42:17
  Speaker 3: one investors are buying into right now.
• 42:21
  Speaker 1: So that far ahead, just as I'm listening here, you're
• 42:24
  Speaker 1: saying 12 to 18 months. But yet, okay, just bear
• 42:29
  Speaker 1: with me for one second. But yet I see almost
• 42:32
  Speaker 1: a daily volatility, though, that isn't 18 months out. It's
• 42:37
  Speaker 1: oil prices are up, oil prices are down, markets up,
• 42:40
  Speaker 1: market down on a daily basis. Yes.
• 42:43
  Speaker 3: And that stuff, now, here's the kicker, all right? Now,
• 42:50
  Speaker 3: When we're talking about leading stocks, I mean the stocks
• 42:53
  Speaker 3: that are literally leading the market forward, these stocks don't
• 42:59
  Speaker 3: care about those things. And we look at how news
• 43:02
  Speaker 3: affects things. We look, you know, news about the war, oil,
• 43:06
  Speaker 3: whatever it is.
• 43:07
  Speaker 1: Consumer confidence. I always use that one because we're a
• 43:12
  Speaker 1: consumer-driven economy. I mean, everybody says, you know, if we
• 43:16
  Speaker 1: don't have the money or consumers draw back, it's not good.
• 43:20
  Speaker 3: That doesn't matter. It doesn't matter because, again, stocks look
• 43:24
  Speaker 3: into the future. And so it's looking into the world
• 43:30
  Speaker 3: 12 to 18 months from now. So if there are
• 43:33
  Speaker 3: stocks that are doing well right now, let's say retail
• 43:37
  Speaker 3: stocks or travel stocks, if they're doing well, it's because
• 43:40
  Speaker 3: they're saying that the consumer is going to be stronger
• 43:43
  Speaker 3: in the future. We all know what's happening right now
• 43:46
  Speaker 3: and what has happened. What has happened with the stock
• 43:48
  Speaker 3: market cares more about the future than it does right now. Now,
• 43:53
  Speaker 3: back to the point about things being volatile. This is
• 43:57
  Speaker 3: actually a wonderful time because the reason why is because
• 44:01
  Speaker 3: in a volatile market, the leaders stand out like a
• 44:06
  Speaker 3: sore thumb. They show incredible strength to what is going on.
• 44:11
  Speaker 3: And the bad news does not affect them like your
• 44:14
  Speaker 3: average stock. And so it helps us to point us
• 44:17
  Speaker 3: in the direction of what are these leading stocks. There
• 44:21
  Speaker 3: are going to be stocks like Intel, Marvel, NVIDIA. There
• 44:26
  Speaker 3: are going to be stocks like we're talking like Invis.
• 44:35
  Speaker 3: These stocks are..
• 44:38
  Speaker 1: In the technology sector, a lot of them?
• 44:41
  Speaker 3: Yeah, the tech sector.
• 44:44
  Speaker 1: I want to throw you a curve question as you
• 44:46
  Speaker 1: talk about that. All right, so as you're talking about
• 44:49
  Speaker 1: that and looking to the future, a lot of people,
• 44:52
  Speaker 1: and I want you to continue to talk about those,
• 44:54
  Speaker 1: but a lot of people are concerned of the future
• 44:55
  Speaker 1: when they talk about AI, the future ahead. And when
• 45:00
  Speaker 1: I say the future, within now to three years where
• 45:02
  Speaker 1: they're saying, we could lose 50% of our white-collar jobs. Well,
• 45:05
  Speaker 1: that's a lot of people losing work, or Facebook got
• 45:08
  Speaker 1: 10,000 people, replaced them with AI. What's the reaction to
• 45:13
  Speaker 1: that future? You thought it'd be easier tonight, Steve.
• 45:17
  Speaker 3: Well, I'm going to share with you my opinion. Okay.
• 45:21
  Speaker 3: Which is worth about two cents.
• 45:23
  Speaker 4: Oh, no.
• 45:24
  Speaker 1: I'm interested in it.
• 45:27
  Speaker 4: Yes.
• 45:27
  Speaker 3: So my personal point of view is that every time
• 45:30
  Speaker 3: we've had a technological change, we've had the same set
• 45:36
  Speaker 3: of concerns. Like when, you know, with the car, what's
• 45:41
  Speaker 3: going to happen to the horse and buggy drivers? Or
• 45:44
  Speaker 3: let's say... Right. when we had electricity or railroads. Every
• 45:52
  Speaker 3: technological change has come with upheaval. But the truth is
• 45:57
  Speaker 3: that as we move into each iteration, the change happens faster.
• 46:04
  Speaker 3: So it is the opportunity for more disruption to happen. Now,
• 46:12
  Speaker 3: I don't personally know what's going to happen. Like, Could
• 46:17
  Speaker 3: it be very disruptive for jobs?
• 46:23
  Speaker 2: Absolutely.
• 46:24
  Speaker 3: Could it also mean that we become immensely more productive? Absolutely.
• 46:31
  Speaker 3: So at the end of the day, it doesn't really
• 46:35
  Speaker 3: matter what my opinion is because opinions don't make us
• 46:40
  Speaker 3: money in the market. The only thing that can stand
• 46:44
  Speaker 3: the chance of making a substantial sum is getting involved
• 46:48
  Speaker 3: with leading stocks and let them work. There are millions
• 46:55
  Speaker 3: of investors out there. There's many, many, many large institutions
• 47:02
  Speaker 3: and think tanks. They have hundreds of thousands of very
• 47:07
  Speaker 3: smart people who are much smarter than me who are
• 47:11
  Speaker 3: researching this and figuring this stuff out and getting positioned
• 47:15
  Speaker 3: in the stocks that are going to change the world.
• 47:18
  Speaker 3: And I want to be involved in those stocks regardless
• 47:22
  Speaker 3: of how I might feel, regardless of what my opinion
• 47:26
  Speaker 3: might be.
• 47:29
  Speaker 1: Gotcha. And if I talked a sector, if I can,
• 47:33
  Speaker 1: then a lot of that would be in the technology
• 47:37
  Speaker 1: sector because that seems to be what's on fire right now.
• 47:40
  Speaker 6: Right.
• 47:41
  Speaker 1: And those stocks wouldn't be driven. They wouldn't care what
• 47:45
  Speaker 1: oil prices are one way or the other.
• 47:46
  Speaker 3: No, no, they certainly don't care because they're looking into
• 47:53
  Speaker 3: the future and seeing a very different world. These stocks
• 47:57
  Speaker 3: and these companies are producing significant enhancements that are going
• 48:04
  Speaker 3: to transform oil. society in ways that we cannot even
• 48:09
  Speaker 3: grasp yet.
• 48:10
  Speaker 2: Right.
• 48:11
  Speaker 3: And I want to be along for that ride. And
• 48:15
  Speaker 3: that means setting aside whatever macro troubles might be going on.
• 48:23
  Speaker 3: As long as these stocks are showing relative strength to
• 48:26
  Speaker 3: what is happening and are being resilient, you know, and
• 48:32
  Speaker 3: showing us that when bad news happens, these stocks bounce
• 48:36
  Speaker 3: right back. And that's the type of behavior that tells
• 48:39
  Speaker 3: us that there's something special going on here. We don't
• 48:42
  Speaker 3: need a room full of scientists and PhDs to figure
• 48:46
  Speaker 3: that out. The market tells us everything that we need
• 48:49
  Speaker 3: to know. We just need to accept it and get
• 48:52
  Speaker 3: positioned and let things work.
• 48:54
  Speaker 1: But there is some degree of judgment to say, should
• 48:57
  Speaker 1: we buy into this particular stock right now, which might
• 49:00
  Speaker 1: be a very high price, or do we wait for
• 49:03
  Speaker 1: it to There is a thing called when's the right
• 49:06
  Speaker 1: time to buy, is there not?
• 49:09
  Speaker 3: Well, that is true. However, the common misconception of when
• 49:16
  Speaker 3: that right time is is that we need to wait
• 49:19
  Speaker 3: for price. to come on down. And that is correct
• 49:25
  Speaker 3: in some ways. Like, it's best to wait to get
• 49:29
  Speaker 3: in at a low-risk point. But the thing about it
• 49:32
  Speaker 3: is that these stocks are so strong, they're not going
• 49:35
  Speaker 3: to make it easy to, And these stocks often look
• 49:38
  Speaker 3: expensive compared to everything else.
• 49:41
  Speaker 7: Why?
• 49:41
  Speaker 3: Because they trade near highs. And yeah, I want to
• 49:44
  Speaker 3: buy a stock that's making highs. Why would I want
• 49:48
  Speaker 3: to buy a stock that's making lows? I want to
• 49:51
  Speaker 3: be on something going to the moon. And to go
• 49:54
  Speaker 3: to the moon, you need to make highs.
• 49:56
  Speaker 1: All right, I'm going to run out of time here.
• 49:58
  Speaker 1: We're going to have you on again. Steve is with
• 50:03
  Speaker 1: John's hedge funds and will be actively involved in a
• 50:07
  Speaker 1: lot of what goes on in that hedge fund. You
• 50:10
  Speaker 1: are a fascinating man, and I look forward to talking
• 50:13
  Speaker 1: to you more in the future. Looking forward to it, too.
• 50:16
  Speaker 1: It was a fast half hour. Thank you, Steve. Appreciate
• 50:19
  Speaker 1: your time.
• 50:19
  Speaker 3: You're very welcome.
• 50:21
  Speaker 1: All right.
• 50:26
  Speaker 5: From ABC News, I'm Dave Packer.
• 50:29
  Speaker 7: Shock and heartbreak in the racing world as it was
• 50:32
  Speaker 7: learned late today that two-time NASCAR champion and legendary driver
• 50:35
  Speaker 7: Kyle Busch has died.
• 50:37
  Speaker 8: In a statement on behalf of Kyle Busch's family and
• 50:40
  Speaker 8: his racing team, they say they are devastated to announce
• 50:42
  Speaker 8: a sudden and tragic passing of Kyle Busch. Earlier on Thursday,
• 50:46
  Speaker 8: his family said he was hospitalized and undergoing treatment due
• 50:49
  Speaker 8: to a severe illness, so he was not going to
• 50:51
  Speaker 8: compete this weekend at Charlotte Motor Speedway. His family saying
• 50:55
  Speaker 8: he was fierce, passionate, and deeply cared about NASCAR and
• 50:58
  Speaker 8: the fans.
• 50:59
  Speaker 5: ABC's Alex Stone, Busch was 41.
• 51:01
  Speaker 7: Growing controversy over President Trump's $ 1. 8 billion fund of taxpayer
• 51:06
  Speaker 7: money that could give payouts to political allies who claim
• 51:09
  Speaker 7: that they were targeted by the Biden administration. Now, a
• 51:12
  Speaker 7: growing number of Republicans on Capitol Hill are raising serious concerns.
• 51:16
  Speaker 9: Senate Republicans hearing from Acting Attorney General Todd Blanch today,
• 51:20
  Speaker 9: according to multiple sources, as Republican outrage over the so-called
• 51:24
  Speaker 9: anti-weaponization fund is complicating leadership efforts to advance the $ 70
• 51:28
  Speaker 9: billion immigration enforcement bill. Multiple people familiar with the negotiations
• 51:33
  Speaker 9: confirmed to ABC News that some Republicans are considering including
• 51:37
  Speaker 9: guardrails for the fund as they work on revisions to
• 51:40
  Speaker 9: the bill.
• 51:40
  Speaker 7: ABC's Karen Travers, an example of a guardrail from Florida
• 51:44
  Speaker 7: Republican Congressman Carlos Jimenez.
• 51:46
  Speaker 1: This should be for people that were really abused and
• 51:50
  Speaker 1: over-prosecuted and the DOJ was weaponized against them. They have
• 51:56
  Speaker 1: to prove it.
• 51:57
  Speaker 7: Outrage from congressional Democrats at this hour after House Republicans
• 52:01
  Speaker 7: pulled a vote on an Iran war powers resolution that
• 52:04
  Speaker 7: members were slated to vote on tonight. Sources telling ABC
• 52:08
  Speaker 7: News the vote was scrapped at the last minute due
• 52:10
  Speaker 7: to attendance issues on the GOP side.
• 52:12
  Speaker 5: It was a record day on Wall Street.
• 52:14
  Speaker 7: The Dow closing at a new high, up 276 points,
• 52:18
  Speaker 7: over 50,000, ahead of a Memorial Day weekend fueled by
• 52:21
  Speaker 7: talks of a deal with Iran.
• 52:23
  Speaker 5: You're listening to ABC News.
• 52:25
  Speaker 6: Hot summer days and high energy bills are on the way.
• 52:28
  Speaker 6: Upgrade your home's old leaky windows this month during WindowNation's buy, forget,
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  Speaker 10: our cash and the free report you can receive a
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• 53:03
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• 53:06
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• 53:12
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• 53:15
  Speaker 10: Learn more about BRICS, industry leaders, and their market predictions
• 53:18
  Speaker 10: for the future, along with what you might expect to
• 53:20
  Speaker 10: see in terms of precious metal performance in the weeks
• 53:22
  Speaker 10: and months ahead. Message and data rates may apply.
• 53:26
  Speaker 7: Nation's weather experts sharing their predictions for the upcoming Atlantic
• 53:29
  Speaker 7: hurricane season with Dr. Neil Jacobs from NOAA saying they
• 53:32
  Speaker 7: expect below average activity.
• 53:34
  Speaker 11: 8 to 14 named storms with winds at or above
• 53:37
  Speaker 11: 39 miles an hour. Of these, 3 to 6 hurricanes
• 53:42
  Speaker 11: with winds at or above 74 miles an hour. And
• 53:46
  Speaker 11: 1 to 3 major hurricanes, that's your category 3 to 5.
• 53:50
  Speaker 11: with winds at or above 111 miles an hour.
• 53:54
  Speaker 7: The Vatican says thou shalt not pretend to be a
• 53:56
  Speaker 7: sexy priest, even for a popular Roman souvenir.
• 54:00
  Speaker 5: ABC's Sherry Preston has more.
• 54:02
  Speaker 12: On the crowded streets of Rome, especially near the Vatican,
• 54:04
  Speaker 12: the smiling face of a very hot priest looks out
• 54:07
  Speaker 12: from a souvenir stand advertising a 2027 calendar featuring him
• 54:11
  Speaker 12: and 11 other sexy men of the cloth. In reality,
• 54:14
  Speaker 12: cover model Giovanni Galizia and most of those inside are
• 54:17
  Speaker 12: not priests, and the photos for each month haven't changed
• 54:20
  Speaker 12: in more than 20 years. Galizia is now a 39-year-old
• 54:23
  Speaker 12: flight attendant who says he posed for the calendar when
• 54:26
  Speaker 12: he was 17 on a lark, and it's had no
• 54:28
  Speaker 12: bearing on his life until this week. when the story
• 54:31
  Speaker 12: about the fake sexy priests surfaced. Sherry Preston, ABC News.
• 54:36
  Speaker 7: Following a botched lethal execution attempt some witnesses described as
• 54:40
  Speaker 7: horrible to watch, Tennessee's governor granting a one-year stay for
• 54:43
  Speaker 7: Tony Carruthers, who was set to be executed after being
• 54:46
  Speaker 7: convicted of killing three people back in 1994, his attorney
• 54:50
  Speaker 7: saying they're relieved by the decision.
• 54:52
  Speaker 5: Dave Packer, ABC News.
• 54:55
  Speaker 6: Hot summer days and high energy bills are on the way.
• 54:58
  Speaker 6: Upgrade your home's old leaky windows this month during WindowNation's buy, forget,
• 55:02
  Speaker 6: for free sale. Yes, half of your new, beautiful, energy-efficient windows, free. Plus,
• 55:07
  Speaker 6: no money down and no monthly payments or interest for
• 55:09
  Speaker 6: two years. Call now, 866-286-70 or WindowNation.com. In select markets,
• 55:16
  Speaker 6: trust our family of brands, New South Window and Armor View.
• 55:19
  Speaker 6: That's 866-286-70 or WindowNation.com to book a consultation.