Latest / The Financial Exchange Show / The Real Risk No One Is Pricing In Right Now

Transcript

The Real Risk No One Is Pricing In Right Now · The Financial Exchange Show

• 0:00
  Speaker 1: The Financial Exchange is produced by Money Matters Radio and
• 0:03
  Speaker 1: is hosted by employees of the Armstrong Advisory Group, a
• 0:05
  Speaker 1: registered investment advisor. All opinions expressed are solely those of
• 0:08
  Speaker 1: the hosts. Do not reflect the opinions of Armstrong Advisory
• 0:11
  Speaker 1: or anyone else. Investments can lose money. This program does
• 0:14
  Speaker 1: not offer any specific financial or investment advice. Please consult
• 0:17
  Speaker 1: your own financial, tax, and estate planning advisors before making
• 0:20
  Speaker 1: any investment decisions. Armstrong Advisory and the advertisers heard on
• 0:23
  Speaker 1: this program do not endorse each other or their services.
• 0:26
  Speaker 1: Armstrong and Money Matters Radio do not compensate each other
• 0:28
  Speaker 1: for referrals and are not affiliated. This is the Financial
• 0:34
  Speaker 1: Exchange with Mike Armstrong and Paul Lane, your exclusive look
• 0:39
  Speaker 1: at business and financial news affecting your day, your city,
• 0:43
  Speaker 1: your world. Stay informed and up to date about economic
• 0:46
  Speaker 1: and market trends plus breaking business news every day. The
• 0:50
  Speaker 1: Financial Exchange is a proud partner of the Disabled American
• 0:53
  Speaker 1: Veterans Department of Massachusetts. Help us support our great American
• 0:58
  Speaker 1: heroes by visiting DAV five dot Boston and making a
• 1:01
  Speaker 1: donation today. This is the Financial Exchange with Mike Armstrong
• 1:06
  Speaker 1: and Paul.
• 1:07
  Speaker 2: Lane, Good morning, Welcome back to the Financial Exchange. It's Mike,
• 1:12
  Speaker 2: Paul and Tucker with you on a Tuesday where we've
• 1:14
  Speaker 2: got markets in rebound mode. S and P five hundred
• 1:17
  Speaker 2: up fifty eight points, eight tenths of a percent, NASDAK
• 1:20
  Speaker 2: up almost a full percentage point, and the Dow Jones
• 1:22
  Speaker 2: Industrial Average up about three quarters of eight percent. This
• 1:26
  Speaker 2: is after yesterday's fog of war news, strikes on multiple
• 1:30
  Speaker 2: ships in the Straight of Horn, moves, big tension, and
• 1:34
  Speaker 2: strikes between Iran and the UAE. In spite of all that,
• 1:39
  Speaker 2: the US still claiming that the ceasefire remains intact and
• 1:43
  Speaker 2: no new escalation after we sunk I think seven ships,
• 1:47
  Speaker 2: seven Iranian ships yesterday. That's been enough to allow oil
• 1:52
  Speaker 2: prices to pull back a little bit from the presbice.
• 1:55
  Speaker 2: We still are above one hundred bucks a barrel, but
• 1:57
  Speaker 2: prices are down about four and a half percent this morning.
• 2:00
  Speaker 2: And yeah, again, I think the big positive news is
• 2:04
  Speaker 2: this very well could have blown up to a new
• 2:07
  Speaker 2: level here where US was striking at new assets in Iran,
• 2:13
  Speaker 2: but it hasn't. To this point, I don't think anything's
• 2:16
  Speaker 2: done on that front, and clearly the most important piece
• 2:19
  Speaker 2: about whether or not ships are moving through the strait
• 2:22
  Speaker 2: remain status quo. They aren't, and nothing to me indicates
• 2:27
  Speaker 2: that this is in any way over. But it hasn't
• 2:29
  Speaker 2: further escalated from where we were yesterday. I guess is
• 2:32
  Speaker 2: the good news.
• 2:33
  Speaker 3: We got jolts out this morning at ten am.
• 2:36
  Speaker 2: That's the job Openings Labor Turnover Survey, basically indicating that
• 2:39
  Speaker 2: the state of hiring and the state of firing in
• 2:42
  Speaker 2: the country has not changed much. I suspect when we
• 2:45
  Speaker 2: get the Labor Market report on Friday of this week,
• 2:48
  Speaker 2: which will be measuring unemployment rate pace of hiring in
• 2:51
  Speaker 2: the month of April, I don't expect that we're going
• 2:53
  Speaker 2: to see a big spike or decrease in the unemployment rate.
• 2:57
  Speaker 2: I think this moment in time is going to remain
• 2:59
  Speaker 2: all about inflation for the FED in terms of its
• 3:02
  Speaker 2: dual mandate, and they won't really have much of an
• 3:04
  Speaker 2: employment situation to be worried about at this point in time.
• 3:07
  Speaker 2: Anything else catching your eyes, Paul, in terms of markets
• 3:11
  Speaker 2: or any other factors out there.
• 3:13
  Speaker 4: We're about to jump into it a little bit. But
• 3:15
  Speaker 4: the Nasdaq and the semiconductor companies continue to rise quite significantly.
• 3:20
  Speaker 4: That's something that certainly has stood out and has been
• 3:22
  Speaker 4: the case for the last month or so.
• 3:24
  Speaker 2: Yeah, I guess one other point to mention. We saw
• 3:26
  Speaker 2: yield spiking yesterday, especially on that thirty year treasury rate
• 3:30
  Speaker 2: on the news out of Iran, and today we are
• 3:33
  Speaker 2: seeing that reflected in mortgage rates, with the Mortgage News
• 3:35
  Speaker 2: daily average thirty year sitting at six point five six percent.
• 3:40
  Speaker 2: Now that is up from its pre Iran war high
• 3:43
  Speaker 2: of five point nine to nine percent, So sorry, pre
• 3:47
  Speaker 2: Iran war low of five point nine nine percent. So
• 3:50
  Speaker 2: we will see where things go on the interest rate
• 3:52
  Speaker 2: and oil market front, and obviously is the main item
• 3:55
  Speaker 2: that all of us are monitoring. But with recent earnings
• 3:58
  Speaker 2: and everything else, eyes are turning back to the semiconductor space,
• 4:01
  Speaker 2: and with a recent vote in the state of Maine
• 4:05
  Speaker 2: and then following a veto from the governor, there a
• 4:08
  Speaker 2: lot of eyes on data center construction and how local
• 4:13
  Speaker 2: municipalities are dealing with it. We've got a piece from
• 4:17
  Speaker 2: the Bloomberg editorial board. Data centers are not the enemy,
• 4:21
  Speaker 2: they are the future. And this is something that I
• 4:24
  Speaker 2: think local municipalities are going to be dealing with for
• 4:27
  Speaker 2: the next several years weighing the benefits and costs of
• 4:31
  Speaker 2: allowing this type of construction in their area.
• 4:33
  Speaker 4: You had to sort of set the stage here, what
• 4:35
  Speaker 4: are the positives on having data centers come to your
• 4:39
  Speaker 4: state municipality. The positive is it's a pretty easy way
• 4:42
  Speaker 4: to learn tax dollars that don't come with one much
• 4:45
  Speaker 4: consumption associated with a data center.
• 4:47
  Speaker 2: Typically doesn't have any kids to send a school, No,
• 4:50
  Speaker 2: it does. No baby data centers running around the kindergarten.
• 4:53
  Speaker 4: At the stage, as far as it is pretty well
• 4:55
  Speaker 4: isolated in terms of a commercial tax that you're generating
• 4:59
  Speaker 4: from a building compare to other businesses, I doubt you need.
• 5:02
  Speaker 2: A whole bunch of new police officers or firefighters to
• 5:05
  Speaker 2: deal with a new data center. You might need more
• 5:06
  Speaker 2: firefighters or more capacity there, but generally speaking, you know,
• 5:12
  Speaker 2: for every square footage of a home that goes up,
• 5:14
  Speaker 2: you might need more school staff, more firefighters, police officers.
• 5:19
  Speaker 2: You do not need that same infrastructure when it comes
• 5:21
  Speaker 2: to a data center.
• 5:23
  Speaker 4: The downside of them, as much as it's an easy
• 5:26
  Speaker 4: way to get tax dollars into municipality, is that not
• 5:30
  Speaker 4: a lot of jobs that come with it. Yes, the
• 5:32
  Speaker 4: construction and the building of the data center is a
• 5:36
  Speaker 4: labor intensive effort that would bring a lot of jobs
• 5:38
  Speaker 4: to the area. But once the data center is up
• 5:40
  Speaker 4: and running, it is not staff nearly as largely as
• 5:43
  Speaker 4: some other businesses out there. And the biggest concern on
• 5:46
  Speaker 4: voters' minds out there is the utility costs associated with it.
• 5:50
  Speaker 4: These data centers, they consume a lot of water and
• 5:53
  Speaker 4: they consume a lot of electricity. Right now, there's about
• 5:56
  Speaker 4: four thousand data centers across the US, with mentioned three
• 6:00
  Speaker 4: thousand more on the way, and we know that the
• 6:03
  Speaker 4: big hyperscalers that Mike and I talk about in this
• 6:05
  Speaker 4: program a lot are spending upwards of seven hundred and
• 6:08
  Speaker 4: fifty billion dollars of CAPEX over the course the next
• 6:11
  Speaker 4: three to five years to continue to invest in this
• 6:14
  Speaker 4: type of technology. What is so important with these data
• 6:17
  Speaker 4: centers is as much as there are concerns from residents
• 6:22
  Speaker 4: on pressure on utility costs, we know how antiquated the
• 6:25
  Speaker 4: grid system here is in the US. Hooking up to
• 6:27
  Speaker 4: it is a lengthy process. But if you want to
• 6:31
  Speaker 4: compete in this space, which for national security purposes, I
• 6:34
  Speaker 4: think we can all agree that this technology is coming
• 6:36
  Speaker 4: whether you want to want it or not, and to
• 6:39
  Speaker 4: keep pace with China that has very few of these
• 6:43
  Speaker 4: problems in the sense that they can just erect a
• 6:46
  Speaker 4: data center wherever they want and just tell everyone to
• 6:48
  Speaker 4: pound sand.
• 6:50
  Speaker 5: We need to make.
• 6:50
  Speaker 4: Sure that there is appropriate measures put in place that
• 6:54
  Speaker 4: the residents of these communities are not footing the bill
• 6:57
  Speaker 4: for the enhanced consumption of water in electricity impacting their
• 7:01
  Speaker 4: utility bills, finding a system to track that more rigidly
• 7:05
  Speaker 4: so that these hyper scalers are footing the bill for
• 7:07
  Speaker 4: these costs. To me, is far more important than just
• 7:10
  Speaker 4: creating this idea. Wait a minute, we're gonna pause and
• 7:13
  Speaker 4: stop the innovation and just not allow these things.
• 7:16
  Speaker 5: To be built.
• 7:17
  Speaker 3: That's the way I'd rather see them tackle the problem,
• 7:20
  Speaker 3: and in fact.
• 7:21
  Speaker 2: What I think is likely to happen is ultimately this
• 7:25
  Speaker 2: is going to be controlled at the very local level,
• 7:27
  Speaker 2: right like zoning rules and whether or not a data
• 7:31
  Speaker 2: center gets built is high heavily controlled by that local municipality.
• 7:35
  Speaker 2: What's not controlled, though, what's at much more of a
• 7:38
  Speaker 2: regional level, are things like water availability and electricity costs,
• 7:42
  Speaker 2: right like if I live in need them and detum
• 7:46
  Speaker 2: approves a two hundred thousand square foot data center. I'm
• 7:52
  Speaker 2: guessing that my electricity electricity utility costs are still going up.
• 7:56
  Speaker 2: The heck, they could build it in Maine and I
• 7:58
  Speaker 2: might still face a higher like a utility rate, and
• 8:01
  Speaker 2: I still might you know, maybe a liberal along the
• 8:04
  Speaker 2: Colorado River, which is you know, notoriously in drought right now,
• 8:08
  Speaker 2: and it's going to absorb a bunch of the water there.
• 8:10
  Speaker 2: There are downstream impacts, literal downstream impacts there that.
• 8:15
  Speaker 3: The local town isn't going to deal with.
• 8:16
  Speaker 2: Frankly, given all of the property tax benefits that you're
• 8:21
  Speaker 2: probably going to get from a data center being built
• 8:23
  Speaker 2: in your town, I'd be all on board because I
• 8:27
  Speaker 2: know that I'm going to feel the effects of higher
• 8:29
  Speaker 2: electricity costs and higher water scarcity, and I might as
• 8:32
  Speaker 2: well get.
• 8:33
  Speaker 3: Some benefit from it in the short term.
• 8:35
  Speaker 2: I think that this is going to be this battle
• 8:38
  Speaker 2: that happens between towns because I think that these companies
• 8:43
  Speaker 2: are going to be on a pr push. They're going
• 8:46
  Speaker 2: to come to towns and say, look, this is how much
• 8:48
  Speaker 2: we will pay you in property taxes. This is how
• 8:51
  Speaker 2: much we will give in these incentives to lower all
• 8:53
  Speaker 2: of your other residents property tax bills, and I don't
• 8:56
  Speaker 2: think as much planning is going to be done on
• 8:58
  Speaker 2: the water and electricity side of things to really formally
• 9:01
  Speaker 2: understand what those costs look like. And that is the
• 9:04
  Speaker 2: big piece of it. You know, It's not the savings
• 9:06
  Speaker 2: that you might get from property taxes. It is the
• 9:09
  Speaker 2: infrastructure cost that is going to be there for two
• 9:11
  Speaker 2: decades that needs to be built out and is largely I.
• 9:15
  Speaker 3: Think being ignored right now. Yeah, I'll tell you what.
• 9:19
  Speaker 3: This reminds me of another argument too.
• 9:22
  Speaker 2: Remember when all the Amazon warehouses were being built and
• 9:25
  Speaker 2: those got rejected left right, I would I'd take a
• 9:29
  Speaker 2: data center over an Amazon warehouse.
• 9:30
  Speaker 3: Any day of the week.
• 9:32
  Speaker 2: Why I don't have the traffic of giant trucks rumbling
• 9:36
  Speaker 2: through the area all hours of the day.
• 9:38
  Speaker 3: I think you the Amazon warehouses are much bigger, by
• 9:41
  Speaker 3: the way.
• 9:41
  Speaker 2: The warehouses are about a million square fe six hundred
• 9:43
  Speaker 2: thousand to a million square feet. The typical data center
• 9:46
  Speaker 2: is around two hundred thousand. Some of the really big
• 9:48
  Speaker 2: ones can be can be bigger, but the average hyper
• 9:51
  Speaker 2: scale data center around two hundred thousand square feet.
• 9:54
  Speaker 4: I had heard that they're pretty sizable but I think
• 9:57
  Speaker 4: you might be underestimating some of the noise that they
• 10:01
  Speaker 4: generate and the water effects around surrounding areas.
• 10:06
  Speaker 2: Yeah, yeah, again, this is I would love to believe
• 10:10
  Speaker 2: that this is going to be a well thought out
• 10:12
  Speaker 2: exercise where regions come together to figure out how they're
• 10:16
  Speaker 2: going to supply electricity and force these companies to reuse
• 10:20
  Speaker 2: water and you know, be.
• 10:22
  Speaker 3: Intelligent about it. Instead.
• 10:24
  Speaker 2: I think what we're going to ultimately get to is
• 10:25
  Speaker 2: the same type of thing that we had with companies
• 10:27
  Speaker 2: bidding for the Amazon Q two, where it's just like,
• 10:32
  Speaker 2: all right, which one is going to give me the
• 10:34
  Speaker 2: best tax incentive, Let's race to get it approved, because
• 10:37
  Speaker 2: there's a whole bunch of benefits you get by being
• 10:40
  Speaker 2: the first mover as a town and not a well
• 10:44
  Speaker 2: the drawbacks are that you piss off a bunch of
• 10:46
  Speaker 2: your residents, so you probably put it over, you know,
• 10:48
  Speaker 2: on the next town's border, just like you do with
• 10:50
  Speaker 2: your town.
• 10:50
  Speaker 3: Dump. I don't know if everybody else is, at least in.
• 10:53
  Speaker 2: My the towns that I've lived in, the dump for
• 10:56
  Speaker 2: your town is always right on the border of the
• 10:58
  Speaker 2: next town that you hate and your rivals with, so
• 11:00
  Speaker 2: I assume you're going to do the same thing with
• 11:01
  Speaker 2: the data center and make them deal with all the
• 11:03
  Speaker 2: noise and light pollution.
• 11:05
  Speaker 3: But that stuff is real.
• 11:06
  Speaker 2: You go take a look at some of the videos
• 11:08
  Speaker 2: from places like Virginia and Texas where a lot of
• 11:10
  Speaker 2: this stuff has been built. Residents are not happy about
• 11:14
  Speaker 2: the light pollution, the noise, all of these different factors.
• 11:17
  Speaker 2: And my bet would be there's not going to be
• 11:21
  Speaker 2: a ton of forethought and planning going into this.
• 11:23
  Speaker 4: No money's going to talk. They've got some pretty deep
• 11:25
  Speaker 4: pockets on those hyper skills. They'll find a way to
• 11:28
  Speaker 4: get it done. With the almighty dollar usually does.
• 11:30
  Speaker 2: Let's take a quick break when we come back, talking
• 11:33
  Speaker 2: a little bit about the semiconductor space with Apple's new plans.
• 11:36
  Speaker 3: That's next on The Financial Exchange.
• 11:38
  Speaker 1: Miss the show. You can find them on our YouTube page.
• 11:41
  Speaker 1: The show streams live every day, but every hour is archived,
• 11:45
  Speaker 1: including all of our most newsworthy interviews. Go to YouTube
• 11:48
  Speaker 1: and search for the Financial Exchange Radio Show. Follow the
• 11:52
  Speaker 1: Financial Exchange Show on Instagram and see what's driving the
• 11:56
  Speaker 1: conversation about Wall Street and economic trends. This is the
• 11:59
  Speaker 1: fine Nancial Exchange Radio network, all right, time.
• 12:07
  Speaker 6: For trivia here in the Financial Exchange, and yesterday game
• 12:10
  Speaker 6: Stop announced a proposal to buy eBay for fifty six
• 12:14
  Speaker 6: billion dollars. Game Stop is the world's largest video game retailer.
• 12:19
  Speaker 6: eBay is the world's largest online auction style marketplace. So
• 12:24
  Speaker 6: our trivia question today, which company eBay or game Stop
• 12:29
  Speaker 6: was founded first? Once again, which company eBay or game
• 12:33
  Speaker 6: Stop was founded first? Be the fourth person today to
• 12:38
  Speaker 6: text us at six one seven three six two thirteen
• 12:41
  Speaker 6: eighty five with the correct answer along with the keyword trivia,
• 12:44
  Speaker 6: and you win a Financial.
• 12:46
  Speaker 5: Exchange Show T shirt.
• 12:47
  Speaker 6: Once again, the fourth correct response to textus to the
• 12:50
  Speaker 6: number six one seven three six two thirteen eighty five
• 12:53
  Speaker 6: with the correct answer along with the keyword trivia, will
• 12:56
  Speaker 6: win that T shirt. See complete contest rules on National
• 13:00
  Speaker 6: exchine Show dot com.
• 13:01
  Speaker 2: Gotta love a good trivia contest where you got a
• 13:03
  Speaker 2: fifty to fifty shot of winning, Yeah, man, or at
• 13:06
  Speaker 2: least being correct doesn't mean you're gonna win, but like
• 13:09
  Speaker 2: those odds. We were talking about vehicles in the UH
• 13:13
  Speaker 2: in one of the previous segments, and specifically Ford in
• 13:16
  Speaker 2: their you know quote secret plan to develop a thirty
• 13:19
  Speaker 2: thousand dollars electric truck, which my bold prediction never gonna happen.
• 13:25
  Speaker 2: But they are revamping a lot of their manufacturing lines
• 13:28
  Speaker 2: and bringing in new people to try and figure out, like,
• 13:30
  Speaker 2: how could we feasibly do this again with aluminum prices up,
• 13:35
  Speaker 2: with all of the battery tech being so expensive. Now,
• 13:38
  Speaker 2: I'm just I'm not willing to buy that anybody's rolling
• 13:41
  Speaker 2: out for the long term a long term truck. Somebody
• 13:44
  Speaker 2: texted into the show again, you can do the same
• 13:47
  Speaker 2: at six one seven three six two thirteen eighty five quote.
• 13:51
  Speaker 2: They might roll out the thirty thousand truck for a
• 13:53
  Speaker 2: little while, but it won't last long. They won't be
• 13:56
  Speaker 2: cost effective enough to continue producing after a short period
• 13:59
  Speaker 2: of time. Yeah, maybe I don't even think you get
• 14:01
  Speaker 2: there on the MSRP. I don't think any of these
• 14:03
  Speaker 2: things ever get sold at thirty thousand, because I just
• 14:06
  Speaker 2: don't think it's going to work. But I suppose possibly
• 14:09
  Speaker 2: that's going to be the case. One other phenomena that
• 14:12
  Speaker 2: I don't know if anybody else has noticed, but I've
• 14:15
  Speaker 2: been I've seen three of these in Connecticut when I
• 14:20
  Speaker 2: was down there recently, and then I saw another one
• 14:23
  Speaker 2: on I ninety in.
• 14:25
  Speaker 3: Massachusetts the other day.
• 14:27
  Speaker 2: Are these really tiny trucks that I didn't even know
• 14:30
  Speaker 2: what the name of them are, but they're apparently called
• 14:34
  Speaker 2: K trucks k Ei, these Japanese mini trucks there again, Yeah,
• 14:38
  Speaker 2: it looks like small cab and and then a flatbed.
• 14:41
  Speaker 6: It looks like a small box truck but without the box.
• 14:43
  Speaker 3: Yes, a bed, just a really small box truck with
• 14:46
  Speaker 3: a bed.
• 14:47
  Speaker 2: And again I've never seen one of these on US
• 14:50
  Speaker 2: roads before, and I was kind of curious, like, where
• 14:52
  Speaker 2: are these coming from? And it is, of course a
• 14:55
  Speaker 2: weird loophole. So, due to a twenty five year import
• 15:01
  Speaker 2: rule exemption, these tiny trucks that were made in the
• 15:05
  Speaker 2: nineties are now being imported and registered as classic cars
• 15:09
  Speaker 2: because they're over twenty five years old. They're built in
• 15:12
  Speaker 2: the nineties. These things are then allowed to be exempted
• 15:18
  Speaker 2: from all sorts of safety and emission standards that are
• 15:21
  Speaker 2: present on new cars that get imported because again they're
• 15:24
  Speaker 2: being imported as a classic car. And so these things
• 15:27
  Speaker 2: get made by Honda, Suzuki and other you know Japanese
• 15:33
  Speaker 2: companies that produce these things. But I suspect we're going
• 15:35
  Speaker 2: to see a few more of them, and I'm just
• 15:38
  Speaker 2: all about it.
• 15:39
  Speaker 3: I mean, I've been.
• 15:40
  Speaker 2: Pretty vocal in my criticism of people with giant ninety
• 15:44
  Speaker 2: thousand dollars F series pickup trucks that you know, use
• 15:48
  Speaker 2: them once a year to go get mulch of the dump.
• 15:51
  Speaker 3: Or something like that.
• 15:52
  Speaker 2: And this can do all of those things and more
• 15:54
  Speaker 2: at a price point of usually between five and ten
• 15:57
  Speaker 2: thousand dollars. And you know, I don't know how many
• 16:00
  Speaker 2: of these things are, but again I've seen three of
• 16:03
  Speaker 2: them past like month and a half and had not
• 16:06
  Speaker 2: seen any of them ever before.
• 16:07
  Speaker 5: Yeah.
• 16:07
  Speaker 4: According to japan Used Motor Vehicle Export Association, there's been
• 16:12
  Speaker 4: more than thirty thousand export to the.
• 16:14
  Speaker 5: US in the last five years.
• 16:15
  Speaker 4: So just like actually something this is from a wm
• 16:19
  Speaker 4: R dot com article that I'm setting here from back
• 16:22
  Speaker 4: over the coursa last summer. But it does seem like
• 16:26
  Speaker 4: you're seeing more of these now. And so these have
• 16:27
  Speaker 4: the hand cranked windows to roll down.
• 16:31
  Speaker 3: By first Mazda.
• 16:32
  Speaker 4: It's old school across the board here that it seems
• 16:35
  Speaker 4: like they are that would be problematic for yours truly.
• 16:40
  Speaker 2: Yeah, So if you're wondering why you're starting to see
• 16:43
  Speaker 2: these tiny Japanese trucks.
• 16:45
  Speaker 3: On the road.
• 16:45
  Speaker 2: The answer is that they are. They're classics now, so
• 16:48
  Speaker 2: you can get away with it. And what a practical solution.
• 16:51
  Speaker 2: I don't need a thirty thousand dollars FORTYV because I
• 16:53
  Speaker 2: can get a seven thousand dollars Honda Acti or Suzuki.
• 16:57
  Speaker 3: Carrie love it.
• 17:00
  Speaker 2: Exploring on shoring chip production by using Intel and Samsung
• 17:04
  Speaker 2: to build some of their main device components here in
• 17:07
  Speaker 2: the United States. And I'll tell you, I think this
• 17:10
  Speaker 2: is the perfectly logical situation to what we are seeing
• 17:13
  Speaker 2: in Iran right now. When you think about the two
• 17:19
  Speaker 2: main areas that you know, geopolitical experts have forever been
• 17:23
  Speaker 2: concerned about having a blockade of the first one is
• 17:29
  Speaker 2: the Straight of Horror Mouz and the second one is
• 17:31
  Speaker 2: the Taiwan Straight or the Chinese And I.
• 17:34
  Speaker 4: Put it a reverse order in terms of economic impact,
• 17:37
  Speaker 4: because the economic impact on Taiwan or any issues in
• 17:41
  Speaker 4: terms of manufacturing disruption, there would be a cataclysmic situation
• 17:45
  Speaker 4: for the global economy. It is so much more critical
• 17:50
  Speaker 4: not to say the Straight of Horn moves isn't. We're
• 17:51
  Speaker 4: finding out that it clearly is. But it is so
• 17:54
  Speaker 4: much more critical to all the stock market growth that
• 17:58
  Speaker 4: we've seen from the for these products. And so Apple
• 18:02
  Speaker 4: is rightfully scrutinizing their supply chain, realizing that Taiwan Semiconductor,
• 18:07
  Speaker 4: which is the close to end all be all in
• 18:10
  Speaker 4: terms of a semiconductor manufacturer that does the most sophisticated
• 18:14
  Speaker 4: manufacturing of these processors that Apple has here as well
• 18:20
  Speaker 4: as the chips that in Nvidia designs, they are the
• 18:23
  Speaker 4: manufacturers behind it. And because of the shortage of memory
• 18:28
  Speaker 4: of all sorts of other semiconductor resources out there, Apple
• 18:32
  Speaker 4: is scrutinizing their own global supply chain that even them
• 18:34
  Speaker 4: being the biggest customer, one of the biggest customers that
• 18:37
  Speaker 4: Timeland Semiconductor has, it's probably now been eclipsed by Nvidia.
• 18:40
  Speaker 4: They're scrutinizing their business supply chain, saying that we need
• 18:43
  Speaker 4: other places to go to. Again, even though Intel is
• 18:47
  Speaker 4: I just can't even figure out Intel. They just continue
• 18:49
  Speaker 4: to be on this parabolic roar of any kind of
• 18:52
  Speaker 4: good news. Is they're literally just looking at Intel, and
• 18:55
  Speaker 4: Intel stock is up fourteen percent today. They haven't put
• 18:57
  Speaker 4: any orders down or anything like that. They're just potentially
• 19:00
  Speaker 4: interviewing and polmarily looking at Intel and Samsung to develop
• 19:03
  Speaker 4: these processors, and and Intel just can't be stopped and
• 19:07
  Speaker 4: is up another fourteen percent.
• 19:09
  Speaker 2: By the way, while twenty percent of the world's oil
• 19:11
  Speaker 2: flows through the Strait of Hormuz, sixty percent of all
• 19:14
  Speaker 2: semiconductors come from Taiwan, and ninety percent of the most
• 19:17
  Speaker 2: advanced semis.
• 19:19
  Speaker 5: That's what I was thinking of the ninety percent.
• 19:20
  Speaker 2: Yeah, yeah, So you want to build a data center,
• 19:22
  Speaker 2: ninety percent of your.
• 19:23
  Speaker 3: Supplies come from Taiwan.
• 19:24
  Speaker 2: Currently, quick break, Wall Street Watch is coming right right
• 19:28
  Speaker 2: up where that's.
• 19:28
  Speaker 1: Next, bringing the latest financial news straight to your radio
• 19:44
  Speaker 1: every day. It's the Financial Exchange on the Financial Exchange
• 19:47
  Speaker 1: Radio network. I know full wool Street Watch tracking the stocks,
• 19:53
  Speaker 1: the data, and the headlines driving markets so far today
• 19:57
  Speaker 1: right here on the Financial Exchange Radio network.
• 20:01
  Speaker 6: Ball markets are rebounding today after yesterday's sell off amid
• 20:04
  Speaker 6: the fragile ceasefire between the US and around with oil
• 20:07
  Speaker 6: pulling back today right now, the Dow is up over
• 20:10
  Speaker 6: half a percent, or two hundred and fifty five points,
• 20:13
  Speaker 6: SMP five hundred up about three quarters of a percent,
• 20:16
  Speaker 6: Nasdaq up nine tenths of a percent or two hundred
• 20:19
  Speaker 6: and thirty one points, Rusted two thousand is up over
• 20:22
  Speaker 6: one and a half percent, Tenure Treasure Reeled is down
• 20:25
  Speaker 6: three basis points at four point four to one two percent,
• 20:29
  Speaker 6: and Oil down four percent today, trading right around one
• 20:32
  Speaker 6: hundred two dollars a barrel. According to Bloomberg, Apple has
• 20:37
  Speaker 6: held exploratory discussions with intell and Samsung about producing main
• 20:41
  Speaker 6: processors for its devices in the US as a secondary
• 20:45
  Speaker 6: option behind excuse me beyond, longtime partner Taiwan Semiconductor. Intel
• 20:50
  Speaker 6: stock rallying again today, up another fourteen percent, while Apple
• 20:55
  Speaker 6: is up about one percent. Meanwhile, Pallenteer stock falling over
• 20:58
  Speaker 6: five percent, despite the data analytics company posting a record
• 21:02
  Speaker 6: quarterly revenue and profit for its previous quarter. Elsewhere, Beer
• 21:06
  Speaker 6: Giant Aarnheuser Busch InBev booked its first sales volume growth
• 21:10
  Speaker 6: in three years, Shares in the budweiser maker up by
• 21:13
  Speaker 6: nine percent, pinterest jumping nearly eleven percent. After the image
• 21:18
  Speaker 6: sharing platform be quarterly estimates and posted a second quarter
• 21:21
  Speaker 6: guidance that came in above forecast. Coinbase announced the company
• 21:25
  Speaker 6: will cut about fourteen percent of its workforce, sending shares
• 21:29
  Speaker 6: down by two percent, and after today's clothes, AMD will
• 21:33
  Speaker 6: report its quarterly earnings. I'm Tucker Silvan. That is Wall
• 21:37
  Speaker 6: Street Watch. And in the previous segment we asked you
• 21:39
  Speaker 6: the trivia question which company, eBay or game Stop was
• 21:43
  Speaker 6: founded first. Well, that would be game Stop, which was
• 21:47
  Speaker 6: founded in nineteen eighty four in Texas. eBay was founded
• 21:50
  Speaker 6: in nineteen ninety five in California. And Jeremy from Vinyard, Naven,
• 21:54
  Speaker 6: Mass is our winner today taking home a Financial Exchange
• 21:58
  Speaker 6: Show t shirt and we play trivia every day here
• 22:01
  Speaker 6: on the Financial Exchange See complete contest rules at Financial
• 22:05
  Speaker 6: Exchange Show dot com.
• 22:06
  Speaker 2: Paul want to talk about the great wealth transfer that
• 22:10
  Speaker 2: gets described over and over again, especially in our industry
• 22:13
  Speaker 2: of managing money, and just some details on it because
• 22:21
  Speaker 2: certainly you know there is a lot of concentration and
• 22:24
  Speaker 2: I know firsthand Paul that neither your experience nor my
• 22:27
  Speaker 2: experience has to do with managing money for multi billionaires
• 22:31
  Speaker 2: or billionaires at all. But when you talk to your
• 22:36
  Speaker 2: clients who are wealthy by definition, what is their average
• 22:42
  Speaker 2: attitude towards inheritance and giving money away while living? Like,
• 22:49
  Speaker 2: how do they view it all? Because I have a view,
• 22:51
  Speaker 2: but I don't want it to taint your own experience
• 22:53
  Speaker 2: in terms of what I'm seeing from people, what do
• 22:56
  Speaker 2: they say and what do they do. Yeah, so it
• 22:58
  Speaker 2: can very pretty significant. Only some couples that you meet
• 23:01
  Speaker 2: with will be under the pretense of, hey, I want
• 23:04
  Speaker 2: to do gifting that makes an impact while my children
• 23:08
  Speaker 2: will significantly benefit from it while they're starting their young family,
• 23:11
  Speaker 2: while they're enduring higher costs from childcare or whatever.
• 23:16
  Speaker 5: The case may be.
• 23:16
  Speaker 4: But I've met with others who are concerned that by
• 23:20
  Speaker 4: gifting too much, they make it too easy on their kids,
• 23:23
  Speaker 4: and they want to make sure that they're there as
• 23:25
  Speaker 4: a backstop, but also not going to enable their kids
• 23:30
  Speaker 4: to spend freely and not at least have to kind
• 23:33
  Speaker 4: of work for it like they feel they did as
• 23:36
  Speaker 4: my clients. And so everyone does have a differing view
• 23:40
  Speaker 4: on it. But the one thing that is quite common
• 23:44
  Speaker 4: is that there is a tremendous amount of focus with
• 23:46
  Speaker 4: clients on how do I do this appropriately. There's a
• 23:49
  Speaker 4: lot of strategy that goes into it. But I don't
• 23:51
  Speaker 4: know if I have one common refrain. It does seem
• 23:53
  Speaker 4: like everyone differs.
• 23:54
  Speaker 2: If you think it differs, But I will say that
• 23:56
  Speaker 2: the most common one that I hear is.
• 24:00
  Speaker 3: I save this money.
• 24:01
  Speaker 5: M hm.
• 24:02
  Speaker 3: I raised my children. There's you know, they are.
• 24:06
  Speaker 2: Doing well, they are successful, they went to college, they
• 24:09
  Speaker 2: don't have a tremendous amount of debt.
• 24:12
  Speaker 3: If they get something, great, But I will get.
• 24:14
  Speaker 5: What they get money.
• 24:14
  Speaker 4: Sorry, I should have addressed that. I just focused on
• 24:16
  Speaker 4: for the people who do care about it, the breakdown.
• 24:18
  Speaker 4: But yeah, you're right, the biggest pie of that distribution
• 24:22
  Speaker 4: is in the camp of they get what they get.
• 24:24
  Speaker 2: Yeah, okay, So I agree with you there, and to
• 24:27
  Speaker 2: that end, it kind of plays into this journal article
• 24:29
  Speaker 2: of hey, that wealth transfer won't be happening anytime soon.
• 24:33
  Speaker 2: There are some key stats about longevity that I think
• 24:37
  Speaker 2: people fail to realize because they focus too much on
• 24:42
  Speaker 2: average life expectancy. And average life expectancy in the United
• 24:47
  Speaker 2: States today is around uh okay, so we're at average
• 24:53
  Speaker 2: of seventy nine years. But that's at birth. And so
• 24:57
  Speaker 2: the piece that people fail to realize is that when
• 24:59
  Speaker 2: you take a sixty five year old married couple and
• 25:03
  Speaker 2: look at life expectancy on that side of things, it
• 25:06
  Speaker 2: is far different.
• 25:07
  Speaker 3: Than when you're talking about a newborn.
• 25:09
  Speaker 2: So when you take a sixty five year old married
• 25:11
  Speaker 2: couple that's already made it there and has the benefit
• 25:13
  Speaker 2: of being married and therefore extends their life expectancy. You're
• 25:17
  Speaker 2: talking about a woman on average living to eighty seven
• 25:19
  Speaker 2: years old and a man living to eighty four.
• 25:22
  Speaker 5: Really okay, In.
• 25:23
  Speaker 2: Fact, there is a forty percent chance that a sixty
• 25:26
  Speaker 2: five year old woman will make it to ninety and
• 25:28
  Speaker 2: a thirty percent chance that a man will make it
• 25:31
  Speaker 2: to ninety at sixty five. When you then take the couple,
• 25:35
  Speaker 2: because if we're talking about the inheritance piece of it,
• 25:37
  Speaker 2: we're talking about when's the second one down right, When
• 25:39
  Speaker 2: you take a couple and extend that out, you're talking
• 25:42
  Speaker 2: about a fifty to fifty shot that at least one
• 25:45
  Speaker 2: of them makes it to age ninety, twenty five percent
• 25:48
  Speaker 2: chance that at least one makes it to ninety five,
• 25:50
  Speaker 2: and still like five to seven percent chance that at
• 25:55
  Speaker 2: least one makes it to one hundred years old. So
• 25:59
  Speaker 2: a few things about that one. I agree the wealth transfer,
• 26:02
  Speaker 2: it ain't happening anytime soon because most people think about
• 26:04
  Speaker 2: it the way that I just described. I've helped my
• 26:07
  Speaker 2: kids if they really need help down the road, I
• 26:09
  Speaker 2: might be willing to do so, but otherwise they're going
• 26:11
  Speaker 2: to get this money when I'm dead.
• 26:13
  Speaker 3: Two.
• 26:15
  Speaker 2: The piece that I think a lot of folks fail
• 26:17
  Speaker 2: to understand is that that generation is on average, horribly
• 26:23
  Speaker 2: unprepared for the dramatic costs of long term care. The
• 26:32
  Speaker 2: vast majority of them don't have long term care insurance.
• 26:36
  Speaker 2: The vast majority of them. If again, if you have
• 26:40
  Speaker 2: fifty percent of married couples at least one of them
• 26:42
  Speaker 2: living till age ninety, guess what, You're probably going to
• 26:45
  Speaker 2: need some care. In that case, they are underestimating how
• 26:48
  Speaker 2: much it costs, and they are not doing a very
• 26:51
  Speaker 2: good job, in my personal opinion, of explaining their wants
• 26:56
  Speaker 2: to their kids. And by once, I mean this, this
• 27:00
  Speaker 2: is the type of care that I want provided. This
• 27:02
  Speaker 2: is the type of care I don't want provided. If all,
• 27:05
  Speaker 2: if I don't recognize you, this is what I want
• 27:07
  Speaker 2: to have it. That stuff is not written down somewhere,
• 27:10
  Speaker 2: and nobody likes talking about it because.
• 27:13
  Speaker 4: It's not seriously handled either. How many jokes have we
• 27:15
  Speaker 4: heard about, you know, wak.
• 27:17
  Speaker 3: Off into the woods. I'm gonna take that sailboat trip.
• 27:20
  Speaker 2: Like as horrifying as that sounds Yeah, that's the usual
• 27:23
  Speaker 2: response that I get from people. And so that's the
• 27:26
  Speaker 2: other piece of this that I think is underappreciated. Yes,
• 27:29
  Speaker 2: there is ninety four trillion dollars sitting in baby boomer's
• 27:33
  Speaker 2: bank accounts and investment accounts and net worth. I don't
• 27:37
  Speaker 2: know how much of that is going to be spent
• 27:39
  Speaker 2: on long term care, but I don't think it's an
• 27:41
  Speaker 2: insignificant sum. If you have questions about how to deal
• 27:48
  Speaker 2: with your financial legacy, maybe you're in that baby boomer
• 27:52
  Speaker 2: or older generation and trying to sort through how to
• 27:56
  Speaker 2: leave the assets to your loved ones. Maybe you're in
• 27:58
  Speaker 2: that younger generation and you're trying to figure out how
• 28:00
  Speaker 2: to broach the subject with your family and figure out
• 28:04
  Speaker 2: what the plan should be. Believe it or not, this
• 28:07
  Speaker 2: is a huge component of what a financial advisor does,
• 28:10
  Speaker 2: and what the financial advisors at Armstrong Advisory Group do
• 28:13
  Speaker 2: on a day to day basis is talk to our
• 28:15
  Speaker 2: clients about their legacy plans, about their long term care plans,
• 28:19
  Speaker 2: and about what it's going to mean to leave money
• 28:21
  Speaker 2: behind and involve the families in those conversations. If you
• 28:26
  Speaker 2: would like to have conversations along those lines, and could
• 28:29
  Speaker 2: use the expertise of somebody who understands the tax ramifications
• 28:33
  Speaker 2: and estate plan and ratifications of doing so. Give Armstrong
• 28:36
  Speaker 2: Advisor Group a call the numbers eight hundred three nine
• 28:39
  Speaker 2: three for zero zero one. You can check us out
• 28:42
  Speaker 2: online or book time for us to call you back
• 28:44
  Speaker 2: at Armstrong Advisory dot com. But that phone number once
• 28:47
  Speaker 2: again eight hundred three nine three for zero zero one.
• 28:51
  Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
• 28:53
  Speaker 1: registered investment advisor. Nothing in the ad or in any
• 28:56
  Speaker 1: Armstrong guide a specific financial, legal or tax advice. Consult
• 28:59
  Speaker 1: your own financial tax into state planning advisors before making
• 29:02
  Speaker 1: any investment decisions. Armstrong make contact you to offer investment
• 29:05
  Speaker 1: advisory services.
• 29:07
  Speaker 2: By the way, one other plug that I'll just make
• 29:09
  Speaker 2: on this subject. As is the case, most people look
• 29:14
  Speaker 2: at it as hey, you know, if they get something great,
• 29:16
  Speaker 2: but you know, not really my key focus for the
• 29:19
  Speaker 2: group that does do some gifting, I have to tell
• 29:22
  Speaker 2: you I see mistakes all the darn time. I gave
• 29:26
  Speaker 2: away my home. I gave away my lowest cost basis
• 29:30
  Speaker 2: stock because it's been this family heirloom that you know
• 29:33
  Speaker 2: I has, you know, built up on generation I want
• 29:36
  Speaker 2: to leave it to the next generation. There are so
• 29:38
  Speaker 2: many complicated tax scenarios that fall into when you are
• 29:42
  Speaker 2: giving that money away that get genuinely underappreciated that you know,
• 29:48
  Speaker 2: you want to know why the billionaires have plans in
• 29:52
  Speaker 2: place that maintain well from melted generations, because they know
• 29:54
  Speaker 2: these rules and take advantage of them. And we see
• 29:58
  Speaker 2: mistakes being made by folks in their sixties, seventies and eighties.
• 30:01
  Speaker 2: That again, if you're getting a gift, if you're getting
• 30:05
  Speaker 2: an inheritance, who am I to look a gift horse
• 30:08
  Speaker 2: in the mouth, But there are better ways to do
• 30:10
  Speaker 2: it than to just give an asset away, and so
• 30:13
  Speaker 2: be very careful about that if you are planning something,
• 30:15
  Speaker 2: and if you're not gifting, there can be downsides too, right,
• 30:18
  Speaker 2: I mean, especially with retirement accounts and not taking withdrawals
• 30:21
  Speaker 2: out of those, you can end up leaving your kids
• 30:24
  Speaker 2: in a much higher tax bracket than you would have
• 30:26
  Speaker 2: been in. But that's where some intelligent planning comes in
• 30:29
  Speaker 2: and understanding all the rules is critically important.
• 30:32
  Speaker 5: No debt.
• 30:33
  Speaker 2: Let's take a quick break. When we come back. A
• 30:35
  Speaker 2: bit of stack roulette is next on the financial.
• 30:37
  Speaker 1: Exchange from Markets to money, to business and financial news.
• 30:42
  Speaker 1: Watch The Financial Exchange every day on YouTube, hit that
• 30:46
  Speaker 1: subscribe button and keep up to date on the market
• 30:48
  Speaker 1: news you need to know. This is the Financial Exchange.
• 30:53
  Speaker 1: The Financial Exchange is life on series XM's Business Radio
• 30:56
  Speaker 1: Channel one thirty two weekdays from eleven to noon. Get
• 30:59
  Speaker 1: the latest business and financial news from across the country
• 31:02
  Speaker 1: and around the world, and keep up to date on
• 31:05
  Speaker 1: how it might affect your wallet. That's the Financial Exchange
• 31:08
  Speaker 1: weekdays from eleven to noon on a series XM's Business
• 31:11
  Speaker 1: Radio Channel one thirty two. Face He's the Financial Exchange
• 31:15
  Speaker 1: Radio Network.
• 31:20
  Speaker 6: Remember, you can watch the show live every day on
• 31:23
  Speaker 6: our YouTube page while breaking business news and all of
• 31:26
  Speaker 6: our content is also archives. If you want to go
• 31:29
  Speaker 6: back and see a discussion about a specific topic you enjoyed,
• 31:33
  Speaker 6: it's all there with the click of a button. Just
• 31:36
  Speaker 6: search The Financial Exchange on YouTube and be sure to
• 31:41
  Speaker 6: hit that subscribe button.
• 31:42
  Speaker 3: Paul, time for stack Roulette. What do you have for
• 31:44
  Speaker 3: us today?
• 31:46
  Speaker 4: Mike, It's time to cover some AI stuff. We've got
• 31:48
  Speaker 4: a piece here in the Wall Street Journal that asks
• 31:50
  Speaker 4: chat tpt to manage a stock portfolio, and they have
• 31:54
  Speaker 4: the results of how they did so. Basically, what they
• 31:57
  Speaker 4: did is they asked chat gpt to act as a
• 32:00
  Speaker 4: financial advisor during key moments within the markets, and what
• 32:05
  Speaker 4: they found here was that the results were a little
• 32:10
  Speaker 4: bit mixed and there were some pitfalls with their experience.
• 32:13
  Speaker 2: They compared the AI agent to a teaching teachers of
• 32:21
  Speaker 2: teachers who smokes too much weed. Yeah, exactly, so it's
• 32:24
  Speaker 2: not exactly a glowing review.
• 32:25
  Speaker 4: No, it's not so the teaching assistant that has the
• 32:28
  Speaker 4: requisite knowledge to answer your questions, but from time to
• 32:31
  Speaker 4: time may have hit the the bong too hard or
• 32:34
  Speaker 4: hit the joint too hard and sort of would slip
• 32:37
  Speaker 4: from normal fiduciary advice. Basically, some of the pitfalls that
• 32:41
  Speaker 4: they ran into. While it did demonstrate knowledge about subjects
• 32:45
  Speaker 4: and creating an asset allocation tailored to what this reporter
• 32:49
  Speaker 4: wanted in terms of managing a hypothetical million dollar portfolio,
• 32:53
  Speaker 4: it did find that it made some simple arithmetic errors
• 32:56
  Speaker 4: and left too much in cash within the portfolio.
• 32:59
  Speaker 5: It also suggested the.
• 33:00
  Speaker 4: Use of options as a hedging mechanism, something that is
• 33:05
  Speaker 4: complicated and even an advisor will tell you it's not
• 33:08
  Speaker 4: easily done within portfolios, and when it would suggest certain investments.
• 33:14
  Speaker 4: It found that and chatchipt has a propensity to do
• 33:17
  Speaker 4: this that. For example, it mentioned the use of triple
• 33:20
  Speaker 4: leverage EPT ETFs, which anything that is leverage and perhaps
• 33:24
  Speaker 4: and in addition triple leverage has significant risks that come
• 33:27
  Speaker 4: with it. All of us know that as advisors. But
• 33:29
  Speaker 4: it found that chat CIPT, while explaining some of the pitfalls,
• 33:33
  Speaker 4: would sort of almost try in provide some solutions or
• 33:38
  Speaker 4: provide some potential uses of triple leverage ETFs to this
• 33:42
  Speaker 4: particular reporter.
• 33:43
  Speaker 5: Going through the exercise.
• 33:44
  Speaker 4: And CHATTPD has this sort of bias in a sense
• 33:48
  Speaker 4: in when you can use it, it kind of can
• 33:50
  Speaker 4: feed you the information that you're looking for if you
• 33:52
  Speaker 4: have an inclination that you want to look at triple
• 33:54
  Speaker 4: at leverage exactly exactly.
• 33:57
  Speaker 3: So again it's I'm gonna tell you the truth. It's
• 33:59
  Speaker 3: gonna tell you want to hear it, right, which some
• 34:01
  Speaker 3: advisors will do too, by the way, that's that's true.
• 34:04
  Speaker 5: Yeah.
• 34:05
  Speaker 4: It did end the article by saying that it should
• 34:07
  Speaker 4: have had chat Gibt in thinking mode rather than auto.
• 34:09
  Speaker 4: I guess that amounts to a difference between a high
• 34:13
  Speaker 4: school level thinker and.
• 34:14
  Speaker 5: A PHDL PhD level thinker.
• 34:16
  Speaker 4: But the bottom line being that it wasn't ready for
• 34:20
  Speaker 4: primetime yet.
• 34:21
  Speaker 5: Is the takeaway from that?
• 34:22
  Speaker 3: I got to be honest reporter.
• 34:23
  Speaker 2: Maybe I'm wrong, I've been wrong plenty, but I don't
• 34:27
  Speaker 2: see that as the use case for AI.
• 34:31
  Speaker 5: What I profoil management.
• 34:32
  Speaker 3: No, any of.
• 34:33
  Speaker 2: These things, whether it is you know, an AI agent
• 34:37
  Speaker 2: that is going to diagnose my illness, or file my taxes,
• 34:42
  Speaker 2: or design a landscape from my backyard, or provide me
• 34:48
  Speaker 2: financial advice, I don't think any of those are going
• 34:50
  Speaker 2: to be solid use cases of artificial intelligence that people
• 34:56
  Speaker 2: want to use in the near future. I think instead,
• 34:58
  Speaker 2: what it's going to be is this, you know, chat
• 35:02
  Speaker 2: GPT financial Advisor will make you the financial advisor far
• 35:07
  Speaker 2: more efficient at delivering good advice to your people, to
• 35:10
  Speaker 2: your clients. It'll make the CPAs faster and able to
• 35:14
  Speaker 2: handle more clients, and able to input taxes and submit
• 35:19
  Speaker 2: them more efficiently. It will make doctors able to diagnose
• 35:23
  Speaker 2: things more easily without having to do manual research. And
• 35:26
  Speaker 2: it will make lawyers better at drafting legal documents. But
• 35:29
  Speaker 2: I don't think anybody's going to say, yeah, I want
• 35:32
  Speaker 2: to use AI to draft my will, because I don't
• 35:33
  Speaker 2: think anybody's going to trust it in the short term,
• 35:36
  Speaker 2: and I'm not sure you should. Right the lawyer is
• 35:39
  Speaker 2: going to have the knowledge and background to be able
• 35:42
  Speaker 2: to look at something that AI drafts and say, well,
• 35:44
  Speaker 2: that's screwed up. It clearly hallucinated there. Then the financial
• 35:47
  Speaker 2: advisor is going to look at and say, well, it
• 35:49
  Speaker 2: clearly doesn't understand the complexity of options trading. And the
• 35:52
  Speaker 2: doctor's going to say, will it clearly ignored the reality
• 35:55
  Speaker 2: of this patient scenario. And if you don't have that
• 35:58
  Speaker 2: requisite background, notedge, I think people are going to harm
• 36:03
  Speaker 2: themselves and shy away from it.
• 36:05
  Speaker 4: I agree with you, It depends where I would potentially
• 36:07
  Speaker 4: disagree with you is how long you dictate near term
• 36:10
  Speaker 4: because right now AI has clearly pivoted, and we were
• 36:14
  Speaker 4: just talking about off air a piece that Anthropic released
• 36:17
  Speaker 4: on the Financial Advisor World. Enterprise is the focus right now,
• 36:20
  Speaker 4: and in terms of the way Anthropic has been able
• 36:23
  Speaker 4: to grow their revenue, which I believe is going at
• 36:25
  Speaker 4: a trailing twelve forward projective of forty billion dollars from
• 36:29
  Speaker 4: what was six or seven billion. Is on the enterprise side,
• 36:32
  Speaker 4: they've been able to provide solutions for businesses and the
• 36:35
  Speaker 4: consumer side isn't there yet. So i'd agree with you
• 36:38
  Speaker 4: in the near term you're going to see far more
• 36:40
  Speaker 4: usage by businesses, But I wouldn't agree that you're not
• 36:45
  Speaker 4: going to get there where the landscaping scenario that you
• 36:48
  Speaker 4: painted out couldn't be a use case in the future
• 36:51
  Speaker 4: for do it your Selzer's to adopt the technology.
• 36:54
  Speaker 3: I think it's going to take a generation.
• 36:56
  Speaker 5: A generation.
• 36:57
  Speaker 2: I think it's going to take a generation of new
• 37:00
  Speaker 2: young kids to grow up with this technology well enough
• 37:03
  Speaker 2: to trust it to do things themselves. I think that
• 37:06
  Speaker 2: is literally going to be the adoption cycle like we
• 37:09
  Speaker 2: I mean, for example, how many eighty year olds do
• 37:12
  Speaker 2: you know that are comfortable with online banking?
• 37:15
  Speaker 5: Very few.
• 37:16
  Speaker 2: I don't think it's that different from that. I think
• 37:19
  Speaker 2: that there are going to be generations of people who say, no,
• 37:22
  Speaker 2: if I want tax advice, I want to talk to somebody,
• 37:27
  Speaker 2: oh sure, And if i want legal advice, I want
• 37:30
  Speaker 2: to talk to the lawyer. I'm not going to go
• 37:32
  Speaker 2: draft it myself, and I'm not going to trust some
• 37:34
  Speaker 2: AI platform, And so I do think it's going to
• 37:36
  Speaker 2: take more than the technology might be capable of handling
• 37:41
  Speaker 2: more of this stuff within the next five years. I
• 37:43
  Speaker 2: have no doubt, but people's willingness to trust it, I
• 37:48
  Speaker 2: think is going to be the bigger barrier.
• 37:50
  Speaker 4: Barrier our kids will come up through it and trust it,
• 37:52
  Speaker 4: where we'll have the skepticism that they might not.
• 37:55
  Speaker 3: Yeah, we'll see.
• 37:57
  Speaker 2: I mean again, I've been wrong about plenty of these things,
• 37:58
  Speaker 2: But to me, it's about making trained professionals more efficient
• 38:03
  Speaker 2: who can then to lower a lower price.
• 38:04
  Speaker 3: Point to people rather than do it yourself. Quick break
• 38:08
  Speaker 3: for the next twenty two hours.
• 38:10
  Speaker 2: We'll be right back at tomorrow market strongly in positive
• 38:12
  Speaker 2: territory with the NAZAC leading the way up. We'll have
• 38:15
  Speaker 2: a full recap for you tomorrow. Have a great risk
• 38:17
  Speaker 2: of day