Latest / The Financial Exchange Show / Can AI companies monetize fast enough to save the US economy?

Transcript

Can AI companies monetize fast enough to save the US economy? · The Financial Exchange Show

• 0:00
  Speaker 1: The Financial Exchange is produced by Money Matters Radio and
• 0:02
  Speaker 1: is hosted by employees of the Armstrong Advisory Group, a
• 0:05
  Speaker 1: registered investment advisor. All opinions expressed are solely those of
• 0:08
  Speaker 1: the hosts. Do not reflect the opinions of Armstrong Advisory
• 0:11
  Speaker 1: or anyone else. Investments can lose money. This program does
• 0:14
  Speaker 1: not offer any specific financial or investment advice. Please consult
• 0:17
  Speaker 1: your own financial, tax, and estate planning advisors before making
• 0:20
  Speaker 1: any investment decisions. Armstrong Advisory and the advertisers heard on
• 0:23
  Speaker 1: this program do not endorse each other or their services.
• 0:26
  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 Chuck Zada and Mike Armstrong, Your exclusive look
• 0:38
  Speaker 1: at business and financial news affecting your day, your city,
• 0:42
  Speaker 1: your world. Stay informed and up to date about economic
• 0:46
  Speaker 1: and market trends, plus breaking business news every day. The
• 0:50
  Speaker 1: Financial Exchange is a proud partner of the Disabled American
• 0:53
  Speaker 1: Veterans Department of Massachusetts. Help us support our great American
• 0:57
  Speaker 1: heroes by visiting dav five K Boston and making a
• 1:01
  Speaker 1: donation today. This is the Financial Exchange with Chuck Zatdath
• 1:06
  Speaker 1: and Mike Armstraw.
• 1:09
  Speaker 2: Chuck Mike Tucker with you here and kicking things off.
• 1:12
  Speaker 3: We've got mixed markets today.
• 1:15
  Speaker 2: The Dow Jones Industrial Average, or the Dow as it's
• 1:18
  Speaker 2: commonly referred to, up four hundred and forty nine points
• 1:21
  Speaker 2: almost one percent, to a new all time high of
• 1:24
  Speaker 2: forty eight five oh six point seventy five. We got
• 1:28
  Speaker 2: an outside shot another three percent. You're at fifty thousand,
• 1:30
  Speaker 2: mic ooh, might get that before the end of the year.
• 1:33
  Speaker 2: That could be fun. Yeah, bout fifty thousand. It's been
• 1:37
  Speaker 2: a while since we had a nice big round number there.
• 1:39
  Speaker 2: It has s and P five hundred down twenty one points,
• 1:43
  Speaker 2: about a third of a percent at sixty eight sixty five,
• 1:45
  Speaker 2: and the NASDAK composite down to twenty seven about one
• 1:48
  Speaker 2: percent at twenty three four to twenty six. Uh. We've
• 1:52
  Speaker 2: got the ten year US Treasury down four point six
• 1:54
  Speaker 2: basis points to four point one one eight percent. Dollar
• 1:58
  Speaker 2: Index falling in sympathy down point five nine percent to
• 2:01
  Speaker 2: ninety eight point one eight five.
• 2:03
  Speaker 3: Gold also up.
• 2:04
  Speaker 2: In sympathy there, up sixty dollars announced to forty two
• 2:08
  Speaker 2: eighty four and seventy cents, and we got crude oil
• 2:11
  Speaker 2: down a dollar five a barrel to fifty seven forty one,
• 2:15
  Speaker 2: triple a national average. Four gas price is flat relative
• 2:18
  Speaker 2: to yesterday, still a two ninety four, so we remain
• 2:21
  Speaker 2: about two percent below that three dollars per gallon mark.
• 2:27
  Speaker 2: UH yesterday, Federal Reserve met cut interest rates by a
• 2:30
  Speaker 2: quarter percent. Talked about a bunch of stuff. The market
• 2:33
  Speaker 2: rally today it's given some of that back. So I
• 2:35
  Speaker 2: think the market's you know, kind of a combination of
• 2:37
  Speaker 2: sorting that out plus some Oracle earnings which on the
• 2:40
  Speaker 2: surface were fine ish but under the hood show that
• 2:43
  Speaker 2: they have major problems with cash flow that need to
• 2:46
  Speaker 2: be remedied by either more borrowing or more revenue. And
• 2:50
  Speaker 2: the market would prefer more revenue, but thus far the
• 2:52
  Speaker 2: revenue is not there.
• 2:54
  Speaker 4: But the borrowing is.
• 2:55
  Speaker 3: The borrowing is, and so good luck.
• 2:58
  Speaker 4: One of the data point eight thirty eight.
• 3:00
  Speaker 5: This morning we saw the release of the weekly jobless claims,
• 3:03
  Speaker 5: biggest jump in four and a half years, to two
• 3:06
  Speaker 5: hundred and thirty six thousand in the week ending December sixth.
• 3:11
  Speaker 5: That having been said most out there dismissing this as
• 3:14
  Speaker 5: likely seasonal noise, it is very difficult for this group
• 3:17
  Speaker 5: to try and adjust everything during the holiday season on
• 3:21
  Speaker 5: a week to week basis, where a lot of people
• 3:23
  Speaker 5: are taking and then leaving temporary jobs. I think ups
• 3:26
  Speaker 5: delivery drivers runners.
• 3:28
  Speaker 2: Thanksgiving was also a week later than last year, and
• 3:31
  Speaker 2: so this is so basically, we had an undercount last week,
• 3:37
  Speaker 2: we've got an overcount this week. When he averaged it out,
• 3:39
  Speaker 2: it's basically okay, we're still around two hundred and twenty
• 3:41
  Speaker 2: thousand claims, which is where we were before. Now you
• 3:44
  Speaker 2: have seen on the continuing claims, which run a week
• 3:47
  Speaker 2: behind in the reporting, so we're only getting the reporting
• 3:49
  Speaker 2: for the November twenty ninth week. On continuing claims, they're
• 3:52
  Speaker 2: seeing the same thing. So they came in with a
• 3:54
  Speaker 2: drop of one hundred thousand this week. They will likely
• 3:57
  Speaker 2: show an overcount next week of that same hundred thousand.
• 4:01
  Speaker 2: I don't really put much stock into any of this.
• 4:03
  Speaker 2: I don't think anything's changed dramatically in the labor market
• 4:06
  Speaker 2: for the better or the worse in the last two weeks.
• 4:08
  Speaker 5: No, but if we get you know, three four weeks
• 4:11
  Speaker 5: of forty four thousand increases in weekly jobs claims, we'll
• 4:14
  Speaker 5: let you know and you should be scared about that.
• 4:15
  Speaker 2: Yeah, if we start seeing you know, jobless claims at
• 4:17
  Speaker 2: three hundred thousand for several weeks in a row, yep, Okay,
• 4:20
  Speaker 2: we got a problem here.
• 4:21
  Speaker 3: Yep, thus far we don't. We're fine.
• 4:25
  Speaker 2: Let's see barons with the piece. This question looms large
• 4:28
  Speaker 2: over the twenty twenty six stock market.
• 4:31
  Speaker 3: Will McDonald's bring back the McRib.
• 4:33
  Speaker 4: And will they advertise it using artificial intelligence?
• 4:37
  Speaker 3: What's the actual question looming over the market?
• 4:39
  Speaker 5: Mind changes at the FED and will they be able
• 4:42
  Speaker 5: to successfully cut rates and stimulate the economy the way
• 4:45
  Speaker 5: that the President wants to and what will actually happen if.
• 4:48
  Speaker 4: They do so.
• 4:51
  Speaker 5: J Pali just presided over his fourth to last yeah,
• 4:57
  Speaker 5: one of his last four meetings as chair of the
• 4:59
  Speaker 5: Federal Reserve.
• 5:00
  Speaker 4: Kevin Hassett yea.
• 5:01
  Speaker 5: He's got three more next year, right, is very likely
• 5:04
  Speaker 5: to be taking his place as far as we know,
• 5:06
  Speaker 5: and that the President has pushed pretty hard for lower
• 5:12
  Speaker 5: interest rates. I think the question that we got after
• 5:14
  Speaker 5: today's meeting is will anyone Kevin has to included, be
• 5:18
  Speaker 5: able to bring those Federal Reserve members along for that ride,
• 5:21
  Speaker 5: Because even at this meeting, it seemed like Jay had
• 5:24
  Speaker 5: to do some degree of cajoling to get them across
• 5:27
  Speaker 5: that finish line.
• 5:28
  Speaker 2: Yeah, and if you look at the projections for next
• 5:31
  Speaker 2: year right now and again, these are you know, early,
• 5:34
  Speaker 2: and they're not always right. Remember a lot of times
• 5:36
  Speaker 2: these projections are wrong. Going into twenty twenty two, market
• 5:40
  Speaker 2: was projecting the Federal was gonna hike interest rates three
• 5:42
  Speaker 2: to four times. They ended up hiking them the equivalent
• 5:45
  Speaker 2: of I think sixteen hikes maybe it was seventeen over
• 5:49
  Speaker 2: the course of the year. So, like you, these things
• 5:52
  Speaker 2: are not accurate. Like the market is not always right,
• 5:56
  Speaker 2: it's just pricing in you know what people think today.
• 5:59
  Speaker 2: So I think going forward next year, the battle that
• 6:04
  Speaker 2: is out there for the economy, which then is going
• 6:07
  Speaker 2: to determine what the Fed is able to do, is Hey,
• 6:13
  Speaker 2: on the weakening side of things, you've got housing in
• 6:15
  Speaker 2: the labor market. On the improving side of things, potentially
• 6:18
  Speaker 2: consumer spending with some more tax tax deductions and credits
• 6:23
  Speaker 2: for the next filing season, as well as some business
• 6:25
  Speaker 2: deductions that kick in. So does the fiscal side override
• 6:29
  Speaker 2: the weakness that we're seeing in those parts? And then
• 6:32
  Speaker 2: also does AI continue to see this exponential increase in spend,
• 6:37
  Speaker 2: or do we start to see some pullback there because
• 6:40
  Speaker 2: the revenue and profit isn't there.
• 6:42
  Speaker 5: I was gonna say, Jack, I don't mean to make
• 6:45
  Speaker 5: everything in our lives about this AI narrative, but it
• 6:48
  Speaker 5: has to be. The whole ballgame, at least for the
• 6:50
  Speaker 5: US stock market right now, is how quickly can companies
• 6:53
  Speaker 5: monetize artificial intelligence. It's been three years, there's been little
• 6:58
  Speaker 5: to no monitization. And how willing are investors to play that?
• 7:05
  Speaker 4: Play that.
• 7:07
  Speaker 5: Game out for another twelve, eighteen, twenty four months, because
• 7:11
  Speaker 5: at some point, as we're seeing this morning with Oracle,
• 7:15
  Speaker 5: investors just say what's.
• 7:18
  Speaker 4: The path to profitability here?
• 7:20
  Speaker 3: Yes?
• 7:20
  Speaker 5: So that's kind of the whole ballgame to me. I
• 7:22
  Speaker 5: know it does not affect every person's job. I know
• 7:24
  Speaker 5: it doesn't affect inflation. I don't know it doesn't directly
• 7:26
  Speaker 5: affect any of these things. But if you don't get that,
• 7:30
  Speaker 5: then you eventually get a stock market that starts to
• 7:33
  Speaker 5: question all of this. And guess what, if you're buying
• 7:36
  Speaker 5: the S and P five hundred today, you're making a
• 7:39
  Speaker 5: pretty darn big bet on artificial intelligence, like it or not,
• 7:43
  Speaker 5: you are.
• 7:43
  Speaker 2: It's at some point investors get all rod Tidwell on
• 7:47
  Speaker 2: you and say show me the money. And that's what
• 7:50
  Speaker 2: they're doing to Oracle today. And Oracle has a shorter
• 7:54
  Speaker 2: clock than these other companies.
• 7:57
  Speaker 5: Why is that they just don't have enough cash. Their
• 7:58
  Speaker 5: financials are not as good. Yeah, yeah, the Google obviously
• 8:02
  Speaker 5: there's nothing else really coming their way. But you know what, honestly,
• 8:06
  Speaker 5: open Ai doesn't have a much longer runway than an
• 8:09
  Speaker 5: Oracle does that we don't know because they're a privately
• 8:11
  Speaker 5: held company. But at some point who else is going
• 8:14
  Speaker 5: to keep giving you all this money?
• 8:16
  Speaker 2: But open Ai? The difference is twofold number one. They're
• 8:20
  Speaker 2: like they are private yep. So that's one piece. But
• 8:24
  Speaker 2: you also can just with with open Ai if you
• 8:29
  Speaker 2: want to. You can just let your imagination run wild,
• 8:33
  Speaker 2: like you can be like, wow, this company can change everything.
• 8:38
  Speaker 2: With Oracle to a certain extent, you're kind of like, Okay,
• 8:42
  Speaker 2: they're building data centers to power open Ai, and that's
• 8:46
  Speaker 2: what they're doing.
• 8:47
  Speaker 5: Yeah, that pick and shovel argument, the comparison of the
• 8:50
  Speaker 5: gold rush only goes so far.
• 8:52
  Speaker 2: You know, with within video, you don't care about this
• 8:54
  Speaker 2: because as long as this is why Mark Fandetti and
• 8:57
  Speaker 2: I were talking about like in Video's earnings as being
• 8:59
  Speaker 2: a non event. We know people are buying in video
• 9:02
  Speaker 2: chips in crazy numbers.
• 9:04
  Speaker 3: Oh thank you, Mark.
• 9:06
  Speaker 2: The problem is not going to be that people didn't
• 9:10
  Speaker 2: buy enough last quarter because we knew people were buying
• 9:12
  Speaker 2: tons of chips. The problem is going to come if
• 9:15
  Speaker 2: the company's buying the chips can't figure out a way
• 9:17
  Speaker 2: to turn that into revenue at a high at a
• 9:20
  Speaker 2: quick enough pace to cover the accelerating depreciation costs and
• 9:24
  Speaker 2: increase spend. That's when they eventually stop buying them and
• 9:28
  Speaker 2: things become challenging.
• 9:30
  Speaker 4: Yeah, it's the last domino to fall.
• 9:32
  Speaker 2: But like, if you think there is a bubble building
• 9:35
  Speaker 2: and the bubble is people are buying too much of something,
• 9:38
  Speaker 2: well then you're not really worried about the company that
• 9:40
  Speaker 2: people are buying too much of until they say we're
• 9:42
  Speaker 2: going to stop buying that stuff.
• 9:44
  Speaker 4: Yeah. Yeah, you're not going to get any early signals there.
• 9:48
  Speaker 3: No.
• 9:49
  Speaker 2: Uh So getting back to the talk about the FED
• 9:53
  Speaker 2: and how this all dovetails there, Look, the FED at
• 9:56
  Speaker 2: any one point in time could choose to do whatever
• 9:59
  Speaker 2: they want, Like, there's nothing to stop them from cutting
• 10:01
  Speaker 2: interest rates with nine percent inflation.
• 10:03
  Speaker 5: But understand that the FED is not a person, but
• 10:06
  Speaker 5: they do. It's not a single individual, Which is why
• 10:12
  Speaker 5: again I point this out, because we so much associate
• 10:16
  Speaker 5: the FED with j. Powell right now, and we will
• 10:18
  Speaker 5: then associate the FED with Kevin Hassett next year in
• 10:21
  Speaker 5: all likelihood. But he's got to bring at least seven
• 10:25
  Speaker 5: voting members along with him in order to make any decision.
• 10:31
  Speaker 2: Yeah, And so look, the FED in theory, they can
• 10:35
  Speaker 2: do whatever they want at any point in time, Like
• 10:37
  Speaker 2: there's nothing in there, you know, charter or anything that
• 10:40
  Speaker 2: says you can't cut interest rates when inflation's really high.
• 10:44
  Speaker 2: They just know that it would be dumb, you know,
• 10:48
  Speaker 2: like they would lose credibility, and incredibility matters for monetary matters.
• 10:54
  Speaker 3: So I think that the question.
• 10:56
  Speaker 2: Here is is there a path if you're looking for
• 11:02
  Speaker 2: a continuation of lower interest rates?
• 11:05
  Speaker 3: Is there a path in twenty twenty six?
• 11:08
  Speaker 2: The number The only question that really matters there is
• 11:11
  Speaker 2: does inflation continue to come down? Can it, you know,
• 11:16
  Speaker 2: show improvement relative to the last six months where it's
• 11:18
  Speaker 2: jumped up a little bit? Can it improve in twenty
• 11:22
  Speaker 2: twenty six and if it does, regardless of what's happening
• 11:25
  Speaker 2: on the growth side, defen would at least have pausible
• 11:28
  Speaker 2: cover to say, yes, we can cut interest rates. If
• 11:32
  Speaker 2: inflation doesn't move down in twenty six, it's going to
• 11:36
  Speaker 2: be harder just because they won't have that cover to
• 11:38
  Speaker 2: do So that's kind of where we are, Like, the
• 11:42
  Speaker 2: inflation number is the one that matters if we're talking
• 11:44
  Speaker 2: about cutting am I am I wrong?
• 11:47
  Speaker 5: No, I'm just thinking through because we have this argument
• 11:49
  Speaker 5: at the end of every year, and it seems like
• 11:52
  Speaker 5: a much easier path than what they have faced over
• 11:54
  Speaker 5: the course of the last few.
• 11:56
  Speaker 4: Right we've had years we've had this time.
• 11:58
  Speaker 5: Of years over the last few few where we've been
• 12:00
  Speaker 5: talking about inflations over three, over four, over five percent
• 12:04
  Speaker 5: in some cases. How are they going to be able
• 12:06
  Speaker 5: to bring that down without ruining the labor market? And
• 12:08
  Speaker 5: they've succeeded so far, so it does not seem insurmountable
• 12:14
  Speaker 5: to me, but it is an existing challenge.
• 12:16
  Speaker 2: I do think in the short term, the next six months,
• 12:19
  Speaker 2: the bigger risk is to further labor market degradation. I
• 12:21
  Speaker 2: think once you get past May June, I think inflation
• 12:26
  Speaker 2: becomes more of a concern next year if you have
• 12:28
  Speaker 2: not had a major issue with you know, housing or labor.
• 12:34
  Speaker 3: That's kind of where I am. Just take a quick break.
• 12:37
  Speaker 2: When we return, do we want to talk about twenty
• 12:40
  Speaker 2: twenty six s and P five hundred forecasts?
• 12:45
  Speaker 3: Sure, exactly, let's do that after this.
• 12:48
  Speaker 1: The Financial Exchange is Life on Series XM's Business radio
• 12:52
  Speaker 1: channel one thirty two weekdays from eleven to noon. Get
• 12:55
  Speaker 1: the latest business and financial news from across the country
• 12:58
  Speaker 1: and around the world, and keep up to date on
• 13:00
  Speaker 1: how it might affect your wallet. That's the Financial Exchange
• 13:04
  Speaker 1: weekdays from eleven to noon on Series XM's Business Radio
• 13:07
  Speaker 1: Channel one thirty two. This he's the Financial Exchange Radio Network.
• 13:12
  Speaker 6: We're proud to announce that circle K is now the
• 13:14
  Speaker 6: official convenience store of the dav Department of Massachusetts At
• 13:18
  Speaker 6: circle K, Supporting those who bravely served our country isn't
• 13:21
  Speaker 6: just a commitment, it's a heartfelt mission. Circle K is
• 13:24
  Speaker 6: honored to stand with the dav Department of Massachusetts to
• 13:27
  Speaker 6: ensure that veterans receive the care and recognition they deserve.
• 13:31
  Speaker 6: If you'd like to do your part, please visit DAVMA
• 13:34
  Speaker 6: dot org. Thank you for standing with Circle K and
• 13:36
  Speaker 6: the dav Department of Massachusetts, and thank you veterans for
• 13:39
  Speaker 6: all you've done.
• 13:42
  Speaker 1: Find daily interviews and full shows of the Financial Exchange
• 13:45
  Speaker 1: on our YouTube page. Like us on YouTube and get
• 13:49
  Speaker 1: caught up on anything and everything you might have missed.
• 13:52
  Speaker 1: This is the Financial Exchange Radio Network.
• 13:56
  Speaker 7: Time for sure you here in the Financial Exchange. Time
• 13:59
  Speaker 7: magazine announced that the architects of AI are this year's
• 14:03
  Speaker 7: person of the Year, or people are the year I
• 14:06
  Speaker 7: don't know plural. Fifteen people have been named Time Magazine
• 14:10
  Speaker 7: Person of the Year twice. However, only one person has
• 14:14
  Speaker 7: ever been named Person of the Year by the magazine
• 14:18
  Speaker 7: three times. So trivia question today, who is the only
• 14:22
  Speaker 7: person who have been named Time Magazine Person of the
• 14:25
  Speaker 7: Year three times?
• 14:28
  Speaker 4: Once again?
• 14:29
  Speaker 7: Who is the only person who have been named Time
• 14:31
  Speaker 7: Magazine Person of the Year three times? Be the third
• 14:35
  Speaker 7: person today to text us at six one seven three
• 14:38
  Speaker 7: six two thirteen eighty five with the correct answer along
• 14:42
  Speaker 7: with the keyword trivia, and you'll win a Financial Exchange
• 14:46
  Speaker 7: Show T shirt.
• 14:47
  Speaker 4: Once again.
• 14:47
  Speaker 7: The third correct response to text us to the number
• 14:50
  Speaker 7: six one seven three six two thirteen eighty five along
• 14:54
  Speaker 7: with the keyword trivia will win that T shirt. See
• 14:58
  Speaker 7: complete contest rules at Fine nanashlikschenshow dot com.
• 15:02
  Speaker 2: Mike rid that point of the year where everyone and
• 15:06
  Speaker 2: their grandmother starts predicting their twenty twenty six year end
• 15:10
  Speaker 2: s and P five hundred targets. And so we've got
• 15:15
  Speaker 2: Tom Lee out there today saying that quote. I'll quote
• 15:20
  Speaker 2: the headline from MarketWatch. The FED will help drive a
• 15:23
  Speaker 2: ten percent gain for stocks in twenty twenty six. Is
• 15:25
  Speaker 2: one of Wall Street's most accurate forecasters, Tom Lee.
• 15:28
  Speaker 3: So here's the thing.
• 15:30
  Speaker 2: Basically, every investment bank out there takes like ten percent
• 15:34
  Speaker 2: is like their baseline growth for the stock market, maybe
• 15:37
  Speaker 2: plays around with a couple factors, and usually comes in
• 15:40
  Speaker 2: somewhere between like nine and eleven percent for the next
• 15:43
  Speaker 2: year in their projections.
• 15:44
  Speaker 3: Every year.
• 15:46
  Speaker 5: Yeah, you do all this math and all these models
• 15:49
  Speaker 5: that you allegedly have, and then it always results in
• 15:52
  Speaker 5: the same thing, which is the market's going to do
• 15:55
  Speaker 5: what it's done for one hundred years, which is not useful.
• 15:59
  Speaker 2: No at all, And it doesn't tell you anything about
• 16:02
  Speaker 2: the path you take to get there. Like again, right now,
• 16:05
  Speaker 2: just as an example, if you look at the S
• 16:07
  Speaker 2: and P five hundred. Year to date it's up and
• 16:10
  Speaker 2: I'm not doing total return. I'm just doing the price
• 16:13
  Speaker 2: return on the index SP five hundreds, up about sixteen
• 16:17
  Speaker 2: and a half percent year to date.
• 16:20
  Speaker 3: It hasn't exactly been the smoothest ride to get there
• 16:23
  Speaker 3: for the full year.
• 16:24
  Speaker 2: No, you know, yes, if like you look at you know,
• 16:27
  Speaker 2: since April ninth, it's been you know, pretty much smooth sailing.
• 16:31
  Speaker 2: But Galla g Wilkers the first three and a half
• 16:33
  Speaker 2: months had some bumps in them.
• 16:35
  Speaker 5: Also, this article points out of you know, how accurately is.
• 16:39
  Speaker 5: But to be clear, his initial forecast for the S
• 16:41
  Speaker 5: and P five hundred this year was sixty six hundred.
• 16:43
  Speaker 5: We're now sitting at sixty almost the nearly sixty nine hundred.
• 16:47
  Speaker 5: He had to bump it up to seven thousand later
• 16:49
  Speaker 5: in the year because we blew through it. So none
• 16:52
  Speaker 5: of these I don't I don't even begin to know
• 16:55
  Speaker 5: what anyone can do with these things or.
• 16:59
  Speaker 4: Why they published that. I'm quite fun because because.
• 17:01
  Speaker 2: People like us talk about them, and people are like ooh,
• 17:03
  Speaker 2: like they're saying this, that must mean something. I think
• 17:07
  Speaker 2: I think there's actually something that that's a good thought
• 17:10
  Speaker 2: on this which is, well, I think it's a good thought,
• 17:13
  Speaker 2: but that's because I came up with it. I don't
• 17:17
  Speaker 2: think year end targets are you know, useful in any way,
• 17:19
  Speaker 2: shape or form, for two reasons. The first is like,
• 17:22
  Speaker 2: no one has any idea what the year is actually
• 17:23
  Speaker 2: gonna bring. The second is, unless you're like specifically trying
• 17:28
  Speaker 2: to target a certain rate of return next year.
• 17:33
  Speaker 3: Why does it even matter?
• 17:35
  Speaker 2: Like if you're investing in equities, does anyone sit there
• 17:37
  Speaker 2: and say, you know what, I've never invested in stocks before,
• 17:40
  Speaker 2: but for twenty twenty six, I'm gonna put one hundred
• 17:42
  Speaker 2: percent of my net worth into stocks.
• 17:45
  Speaker 1: No.
• 17:46
  Speaker 2: What I do think is reasonable is, hey, here is
• 17:50
  Speaker 2: the range of long term returns, and here is you know,
• 17:54
  Speaker 2: how long I plan to be invested in stocks based
• 17:56
  Speaker 2: on my time to retirement. What are some reasonable projections
• 18:00
  Speaker 2: that can help me achieve my financial goals. That's a
• 18:03
  Speaker 2: reasonable conversation to have. Sure, what will stocks do next year?
• 18:11
  Speaker 4: You know? Yeah, it's not useful information.
• 18:14
  Speaker 2: You know, that's kind of like it's that that's like,
• 18:17
  Speaker 2: you know, will there be three ants er three hundred
• 18:20
  Speaker 2: at the picnic tomorrow?
• 18:23
  Speaker 3: I don't know.
• 18:25
  Speaker 2: I just don't, but there will be ants because there
• 18:28
  Speaker 2: are every picnic anything else on this mic.
• 18:31
  Speaker 4: No, we can move along from S and P five
• 18:33
  Speaker 4: hundred predictions.
• 18:34
  Speaker 3: Be some bloomberg.
• 18:35
  Speaker 2: Affordability isn't a hoax, but it's not a crisis for
• 18:38
  Speaker 2: most either.
• 18:39
  Speaker 5: Your thoughts affordability might be the other than artificial intelligence.
• 18:45
  Speaker 5: Affordability is looking like the word of twenty twenty five.
• 18:47
  Speaker 3: We got to stop using it, man, it's.
• 18:51
  Speaker 4: It's getting a lot of attention. It's obviously being used.
• 18:54
  Speaker 3: In context where it's just not right.
• 18:56
  Speaker 5: Okay, what are those contexts that that you're you're hearing
• 19:01
  Speaker 5: that don't make any sense to you?
• 19:02
  Speaker 2: Well, like when when we talk about affordability, like it
• 19:08
  Speaker 2: implies that there's a right level of affordability and there's
• 19:11
  Speaker 2: not like that.
• 19:13
  Speaker 5: That's I think the only useful context to discuss affordability
• 19:16
  Speaker 5: is compared to some time in the past. That's the
• 19:18
  Speaker 5: only reasonable context you can have. Otherwise you're just making
• 19:23
  Speaker 5: things up. And it's not to say that they're uninformed makeups, right,
• 19:25
  Speaker 5: Like the certified finished planners target thirty percent of your
• 19:30
  Speaker 5: income to be used on housing as an affordable you
• 19:32
  Speaker 5: know index, But again they made it up right, there's
• 19:36
  Speaker 5: no there's no reason or law behind this. It's just
• 19:41
  Speaker 5: that was what they came up with. And so that's
• 19:43
  Speaker 5: what I think is interesting. And to Alison Schrager's point,
• 19:47
  Speaker 5: the author of this piece, it hasn't significantly worsened over
• 19:50
  Speaker 5: the last few years for the majority of Americans, but
• 19:52
  Speaker 5: that's seemingly not what people are focused on.
• 19:54
  Speaker 3: Let's take a quick break.
• 19:56
  Speaker 2: When we return, we've got the Trivia Answer and Wall
• 20:00
  Speaker 2: Street Watch.
• 20:00
  Speaker 8: After this, bringing the latest financial news straight to your radio.
• 20:13
  Speaker 8: Every day, it's the Financial Exchange on the Financial Exchange
• 20:17
  Speaker 8: Radio Network. Time now for Wall Street Watch.
• 20:23
  Speaker 1: A complete look at what's moving markets so far today,
• 20:26
  Speaker 1: right here on the Financial Exchange Radio Network.
• 20:29
  Speaker 7: Well one day after the FED delivered its expected interest
• 20:32
  Speaker 7: rate cut, markets today are mixed Oracles, the UH one
• 20:36
  Speaker 7: of the top stories of the day after its disappointing
• 20:39
  Speaker 7: quarterly revenue and increase spending forecast fueled deck concerns on
• 20:44
  Speaker 7: Wall Street. Oracle shares are currently plunging about fourteen percent
• 20:49
  Speaker 7: right now. The Dow is up one percent or four
• 20:53
  Speaker 7: hundred and eighty six points s and P five hundred
• 20:57
  Speaker 7: is down a third of a percent or twenty three
• 20:59
  Speaker 7: points lower, NASDAC down just over one percent, or two
• 21:03
  Speaker 7: hundred and forty eight points. Russell two thousand is up
• 21:06
  Speaker 7: about a half a percent, Tenure Treasure reeled down four
• 21:09
  Speaker 7: basis points at four point one two two percent, and
• 21:12
  Speaker 7: Crude Oil retreating two percent today trading at fifty seven
• 21:16
  Speaker 7: dollars and twenty seven cents a barrel. Other AI names
• 21:20
  Speaker 7: are seeing sympathy losses in reaction to Oracles earnings. In
• 21:25
  Speaker 7: Vidia down by excuse me, all of in Nvidia Broadcommon
• 21:29
  Speaker 7: AMD are down over three percent. Speaking of AI, Disney
• 21:34
  Speaker 7: this morning said that it announced a one billion dollar
• 21:39
  Speaker 7: equity investment in open Ai. The investment will allow users
• 21:44
  Speaker 7: to make videos of more than two hundred of Disney's
• 21:47
  Speaker 7: copyrighted characters on open AI's video platform Sora, including Marvel
• 21:52
  Speaker 7: Pixar in Star Wars. Disney up over one percent today. Meanwhile,
• 21:57
  Speaker 7: Adobe shares arising nearly one percent. The software provider said
• 22:01
  Speaker 7: it expects double digit revenue growth next year as it
• 22:04
  Speaker 7: looks to expand its AI business elsewhere. ELI Lilly said
• 22:08
  Speaker 7: a late stage trial of its next gen obesity drug
• 22:11
  Speaker 7: delivered what appears to be the highest weight loss yet
• 22:15
  Speaker 7: while reducing nee arthritis pain. ELI stock is climbing over
• 22:19
  Speaker 7: three percent, and Shares and Veil Resorts are now rallying
• 22:23
  Speaker 7: eight percent after the ski resorts operator sold fewer passes
• 22:27
  Speaker 7: heading into peak season, but its CEO said Vale's turnaround
• 22:31
  Speaker 7: strategy was starting to deliver. I'm Tucker Silva in That
• 22:35
  Speaker 7: is Wall Street Watch and in the previous segment, we
• 22:38
  Speaker 7: asked you the trivia question, who is the only person
• 22:40
  Speaker 7: to have been named Time Magazine Person of the Year
• 22:43
  Speaker 7: three times? That would be Fdr Kevin from Dennis Mass
• 22:48
  Speaker 7: is our winner today taking on a Financial Exchange Show.
• 22:50
  Speaker 3: Chee shirt.
• 22:51
  Speaker 7: Congrats to Kevin and we played trivia every day here
• 22:54
  Speaker 7: in the Financial Exchange See complete contest rules at Financial
• 22:58
  Speaker 7: Exchange Show dot com.
• 23:00
  Speaker 3: I always enjoy when we get to talk a little
• 23:02
  Speaker 3: bit about beef.
• 23:03
  Speaker 4: I know you do chuck, but not in this context.
• 23:05
  Speaker 2: No, this, this is kind of mixed feelings. I'm having
• 23:08
  Speaker 2: mixed feelings, especially.
• 23:10
  Speaker 7: With Christmas coming up right. Those ten d's are pretty expensive.
• 23:14
  Speaker 3: It's it's it's a real problem here.
• 23:16
  Speaker 5: If you attend the Age holiday party, you'll be primarily
• 23:19
  Speaker 5: fish to can tuna.
• 23:22
  Speaker 2: It's Mark Fandandy and I will be putting on the
• 23:25
  Speaker 2: Feast of the Seven Fishes.
• 23:26
  Speaker 3: Yeah, and we'll be doing what we can. But uh, yeah,
• 23:30
  Speaker 3: here's what we've got going on.
• 23:31
  Speaker 2: Beef prices have gone up twenty depending on like the
• 23:35
  Speaker 2: specific metric you're looking at, anywhere from about fifteen to
• 23:38
  Speaker 2: thirty percent. But choice boneless steak is up twenty percent
• 23:42
  Speaker 2: in the past year. So you what this piece of
• 23:45
  Speaker 2: The New York Times is talking about is specifically steakhouses,
• 23:48
  Speaker 2: and once across the spectrum from the high end ones
• 23:51
  Speaker 2: where you're you know, paying sixty to eighty dollars a
• 23:54
  Speaker 2: steak to your you know, mid market you know out
• 23:57
  Speaker 2: back Longhorn, Like, You've got this spectrum of different pricing
• 24:01
  Speaker 2: in steakhouses, and what we're seeing is not unlike what
• 24:06
  Speaker 2: we're seeing elsewhere, which is the high end steakhouses are
• 24:09
  Speaker 2: basically saying, yeah, customers aren't really pushing back on higher pricing,
• 24:13
  Speaker 2: and the mid market and down market ones are saying, yeah,
• 24:18
  Speaker 2: we're seeing, you know, traffic changing if we adjust pricing higher.
• 24:23
  Speaker 5: Yeah, And so they find, just like the grocery store does,
• 24:26
  Speaker 5: they find creative ways to sneak this in. Right, if
• 24:28
  Speaker 5: you run a steakhouse, you don't need to make money
• 24:32
  Speaker 5: on your stakes necessarily, right. You can sell them a
• 24:35
  Speaker 5: cost as long as you make money on booze and
• 24:37
  Speaker 5: on sides and everything else. And so they're not likely
• 24:41
  Speaker 5: increasing prices to capture the full price increase that they
• 24:44
  Speaker 5: are experiencing. But yeah, you're seeing prices move up and
• 24:49
  Speaker 5: people not thrilled about it, I guess, is the only way.
• 24:53
  Speaker 3: To put it.
• 24:54
  Speaker 5: And again, like the egg situation, it's not as though
• 24:57
  Speaker 5: there's a quick fix to this one either, unless we're
• 24:59
  Speaker 5: going to se suddenly allow.
• 25:01
  Speaker 4: This is a longer fix right before imports from everywhere.
• 25:04
  Speaker 3: You know, it's you just.
• 25:05
  Speaker 2: Look at again, I know only a little about how
• 25:09
  Speaker 2: you know commercial uh, slaughterhouse, live livestock farms work. And
• 25:15
  Speaker 2: the big thing, like the single biggest thing is look
• 25:17
  Speaker 2: the turnaround times for raising larger animals like cows. It's
• 25:22
  Speaker 2: longer than raising chickens. Yeah, and so you like, you
• 25:25
  Speaker 2: just have more time a that has to elapse and
• 25:28
  Speaker 2: B when we talk about cow herd size and things
• 25:31
  Speaker 2: like that.
• 25:33
  Speaker 3: Farms are you know, very wary of moving too quickly.
• 25:36
  Speaker 2: As well, just because they don't want to get burnt
• 25:39
  Speaker 2: if demand changes.
• 25:40
  Speaker 3: They have in the past decade.
• 25:41
  Speaker 2: Or so, and so it might be like a three
• 25:45
  Speaker 2: to five year process to getting beef prices to normalize
• 25:49
  Speaker 2: relative to incomes.
• 25:51
  Speaker 5: Yeah, yeah, it'll likely take away a while folks. Brand
• 25:55
  Speaker 5: new guide from the Armstrong Advisory Group, and this one
• 26:00
  Speaker 5: is all about heading for retirement as a married couple.
• 26:03
  Speaker 4: So guess what.
• 26:03
  Speaker 5: There's a few people that this wouldn't be relevant for.
• 26:05
  Speaker 5: And if you're single and heading towards retirement, you can
• 26:10
  Speaker 5: drown me out for a minute here. But if you
• 26:12
  Speaker 5: are heading to retirement, there are a few things that
• 26:15
  Speaker 5: I think make it especially challenging as a married couple.
• 26:19
  Speaker 5: And it's not so much that it's insurmountable, but it
• 26:22
  Speaker 5: requires more planning than otherwise. There's a few items that
• 26:26
  Speaker 5: I go through in my mind. One a significant age
• 26:29
  Speaker 5: difference between spouses, and really significant can be anything over
• 26:33
  Speaker 5: three year age difference, So I know that's not that
• 26:35
  Speaker 5: big a gap, but when you have a three plus
• 26:39
  Speaker 5: year age difference, you're talking about all sorts of things
• 26:41
  Speaker 5: like social security planning, medicare planning. That requires a lot
• 26:45
  Speaker 5: of thinking. The other one would be a big division
• 26:48
  Speaker 5: of assets or a big weighting of assets or income.
• 26:51
  Speaker 5: For one sport spouse versus the other. So one person
• 26:55
  Speaker 5: was a stay at home parent all their career, the
• 26:57
  Speaker 5: other one saved all the money into the four oh
• 26:59
  Speaker 5: one k. That is going to require a little bit
• 27:02
  Speaker 5: of more planning than say, you know, people who have
• 27:05
  Speaker 5: a sixty to forty split between assets, or say one
• 27:08
  Speaker 5: spouse has a large pension and the other one is
• 27:11
  Speaker 5: just living off of social Security. Again, these are the
• 27:14
  Speaker 5: items that you have to think about and really do
• 27:17
  Speaker 5: some extra planning if you fall into one of those buckets.
• 27:20
  Speaker 5: In either case, you can get your free copy of
• 27:22
  Speaker 5: our brand new guide Retirement Planning for Spouses by calling
• 27:25
  Speaker 5: eight hundred three nine three four zero zero one. We
• 27:28
  Speaker 5: walk through a lot of the different types of strategies
• 27:30
  Speaker 5: we just went through now, and.
• 27:32
  Speaker 4: Plus a lot more.
• 27:34
  Speaker 5: You can request your copy also by going to Armstrong
• 27:36
  Speaker 5: Advisory dot com, but that phone number is eight hundred
• 27:39
  Speaker 5: three nine three four zero zero one.
• 27:42
  Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
• 27:44
  Speaker 1: registered investment advisor. Nothing in the ad or in any
• 27:47
  Speaker 1: Armstrong Guide a specific financial, legal or tax advice. Consult
• 27:50
  Speaker 1: your own financial, tax into state planning advisors before making
• 27:52
  Speaker 1: any investment decisions. Armstrong may contact you to offer investment
• 27:56
  Speaker 1: advisory services.
• 27:57
  Speaker 2: Mike, I want to talk about this piece from Wall
• 27:59
  Speaker 2: Street Journal. It will soon be curtains for the movie theater,
• 28:03
  Speaker 2: and it's kind of interesting to me in that the
• 28:07
  Speaker 2: subhetter is older generations can't be bothered to go when
• 28:09
  Speaker 2: younger people want to stream their films.
• 28:12
  Speaker 3: And I think that the.
• 28:16
  Speaker 2: Big thing is it very well could be possible that
• 28:19
  Speaker 2: the movie theater as a mass market vehicle for entertainment
• 28:24
  Speaker 2: might just have like one hundred year shelf life. It's
• 28:28
  Speaker 2: not to say that you won't continue to have movie
• 28:30
  Speaker 2: theaters exist in some form, but people today just have
• 28:34
  Speaker 2: more choices as to how they can access their entertainment
• 28:38
  Speaker 2: than ever before, and they're controlling that access with more
• 28:42
  Speaker 2: granularity as well as far as you know what they
• 28:45
  Speaker 2: do throughout any part.
• 28:47
  Speaker 3: Of the day.
• 28:48
  Speaker 5: And I think Jerry Seinfeld put it pretty well here
• 28:51
  Speaker 5: right his quote on this in GQ. Film doesn't occupy
• 28:55
  Speaker 5: the pinnacle in the social cultural hierarchy that it did
• 28:59
  Speaker 5: for most of our life. When a movie came out,
• 29:01
  Speaker 5: if it was good, we all went to see it,
• 29:02
  Speaker 5: We all discussed it, we quoted lines and scenes we
• 29:05
  Speaker 5: liked now we're.
• 29:06
  Speaker 4: Walking through a fire hose of water, just trying to see.
• 29:10
  Speaker 5: And I don't know if the fire hose of water
• 29:12
  Speaker 5: is the perfect analogy, but one hundred percent different than
• 29:18
  Speaker 5: what it was like growing up when a big movie
• 29:20
  Speaker 5: hit the screens, right, Like, we just do not socialize
• 29:25
  Speaker 5: in the same way over these things that we did previously,
• 29:28
  Speaker 5: and that is a big problem for theaters.
• 29:30
  Speaker 3: I disagree, and I over movies.
• 29:34
  Speaker 2: Yes, I'm not going to say I'm smarter than Jerry
• 29:36
  Speaker 2: Seinfeld about media because he's smarter and he'll bury me
• 29:41
  Speaker 2: with like some kind of cutting quote if he ever
• 29:43
  Speaker 2: listened to our show, which I'm sure he doesn't, but
• 29:45
  Speaker 2: maybe he does. Jerry, if you're listening, love your work.
• 29:49
  Speaker 2: Here's the thing. When the right movies come along, they
• 29:53
  Speaker 2: still become cultural touchstones.
• 29:56
  Speaker 3: Well, just in the last few years, Top Gun Maverick
• 29:59
  Speaker 3: back in twenty.
• 30:01
  Speaker 2: Everyone was talking about it, Barbenheimer in twenty three and
• 30:06
  Speaker 2: twenty four, I'm sorry, in twenty three everyone was talking
• 30:09
  Speaker 2: about both of those movies.
• 30:11
  Speaker 3: And the right movie.
• 30:13
  Speaker 2: I also believe can catapult someone to start him in
• 30:16
  Speaker 2: a way that no other medium still does. You know, Mike,
• 30:19
  Speaker 2: can you name me one person who achieves like that
• 30:24
  Speaker 2: true Like like, when's the last person who had true
• 30:27
  Speaker 2: achieved that true a list status like that that celebrity
• 30:30
  Speaker 2: that just everyone knows through a streaming platform or TV.
• 30:34
  Speaker 4: Show, Tina Fey. I think there are plenty of Tina.
• 30:39
  Speaker 2: Fe is not no way like I'm talking. I'm talking
• 30:42
  Speaker 2: like Tom Cruise level. I'm talking like like that level.
• 30:48
  Speaker 2: You can't get there, Tina Faye.
• 30:52
  Speaker 1: What the health?
• 30:54
  Speaker 3: You know it's on Saturday Ight Live.
• 30:56
  Speaker 2: You know what, who's the last person who like came
• 30:59
  Speaker 2: through a streaming platform and became that big or Again,
• 31:03
  Speaker 2: this is just kind of like everything is more disjointed
• 31:05
  Speaker 2: in all these other places. There are podcast stars, but
• 31:09
  Speaker 2: like I don't know who half these people are, what
• 31:11
  Speaker 2: they look like. But just as an example, top Gun Maverick,
• 31:15
  Speaker 2: if I say the name Glenn Powell, now everyone knows
• 31:19
  Speaker 2: that kind of catapulted him on the rise that he's
• 31:21
  Speaker 2: been on the last few years.
• 31:22
  Speaker 3: Now.
• 31:23
  Speaker 4: Yeah, I don't know, Chuck, that it's necessary.
• 31:25
  Speaker 5: Like I hear you that there were some big movies
• 31:27
  Speaker 5: over the last few years, but that is not going
• 31:29
  Speaker 5: to save movie theaters.
• 31:31
  Speaker 2: I'm not saying it will save movie theaters like My
• 31:33
  Speaker 2: point is not that movie theaters can be saved. My
• 31:37
  Speaker 2: point is that movies, specifically ones that are able to
• 31:41
  Speaker 2: be shown in theaters, have a way of catapulting someone
• 31:45
  Speaker 2: and an idea into the national consciousness in a way
• 31:49
  Speaker 2: that no other medium still has been able to figure out.
• 31:52
  Speaker 7: I'll give you one. What do you got Millie Bobby Brown?
• 31:56
  Speaker 3: I don't know who that is?
• 31:57
  Speaker 7: Yes, you do Stranger Things?
• 32:00
  Speaker 3: Is she that big?
• 32:01
  Speaker 7: She's pretty huge right now?
• 32:03
  Speaker 3: Yeah, I mean like I don't know, yeah, no, she
• 32:06
  Speaker 3: I think yeah.
• 32:07
  Speaker 7: I think that's a great example of a Netflix star
• 32:10
  Speaker 7: who is just huge.
• 32:11
  Speaker 4: Now I'm gonna diverge on this.
• 32:13
  Speaker 5: I do not think that the movie is the necessity
• 32:16
  Speaker 5: to catapult people's careers anymore.
• 32:19
  Speaker 4: I think it used to be, and I don't.
• 32:22
  Speaker 5: I don't think it, but maybe it never did though,
• 32:25
  Speaker 5: Like no, Jerry, Jerry Seinfeld like, how can you how
• 32:30
  Speaker 5: can you look at somebody like that?
• 32:31
  Speaker 2: Garry Seinfeld is like, there's a different level of stardom
• 32:35
  Speaker 2: that you can get to, Like Jerry, you know, I'm
• 32:39
  Speaker 2: dead serious on this. When we're talking about like that elite,
• 32:44
  Speaker 2: elite level that you can reach through movies. I don't
• 32:48
  Speaker 2: think any other medium gets you there. It's it's kind
• 32:53
  Speaker 2: of like, if you're comparing Tom Brady and Peyton Manning
• 32:59
  Speaker 2: in pure stuff, they might be similar. Tom Brady reached
• 33:03
  Speaker 2: a level of global stardom that Peyton Manning never did
• 33:06
  Speaker 2: and never will.
• 33:08
  Speaker 3: The Peyton's pretty big.
• 33:11
  Speaker 2: Peyton's not Tom Brady. You could there were times when
• 33:15
  Speaker 2: you could not escape Tom Brady. You've never been able
• 33:18
  Speaker 2: to not escape Peyton Manning. Ivey's watched TV and all
• 33:20
  Speaker 2: the commercials he's on. Okay, he's doing commercials. Everyone does
• 33:24
  Speaker 2: commercials now. This is another thing that's interesting to me.
• 33:27
  Speaker 2: It used to be celebrities only did commercials outside the
• 33:30
  Speaker 2: United States.
• 33:32
  Speaker 3: Now they do them everywhere.
• 33:33
  Speaker 2: That's something that is different that is interesting to me,
• 33:36
  Speaker 2: Like you never used to see celebrities doing commercials and
• 33:39
  Speaker 2: now it's the norm.
• 33:41
  Speaker 3: That's another kind of interesting shift. But in any case,
• 33:45
  Speaker 3: let's take a break on this and when we return,
• 33:48
  Speaker 3: Stack Roulette.
• 33:49
  Speaker 1: The Financial Exchange streams live on YouTube. Subscribe to our
• 33:53
  Speaker 1: page and stay up to date on breaking business news
• 33:56
  Speaker 1: all morning long. He's the Financial Exchange Radio Network. The
• 34:01
  Speaker 1: Financial Exchange is now available every day from eleven to noon.
• 34:04
  Speaker 1: Non serious XM's Business Radio Channel one thirty two. Stay
• 34:08
  Speaker 1: informed about the latest from Wall Street, fiscal policy, and
• 34:11
  Speaker 1: breaking business news. Every day, The Financial Exchange is life
• 34:15
  Speaker 1: on Serious XM's Business Radio Channel one thirty two. This
• 34:18
  Speaker 1: is the Financial Exchange Radio Network.
• 34:23
  Speaker 7: This segment of The Financial Exchange is brought to you
• 34:25
  Speaker 7: by the US Virgin Islands Department of Tourism. There's still
• 34:28
  Speaker 7: time to book your holiday vacation to Saint Croix, Saint Thomas,
• 34:32
  Speaker 7: or Saint John. Enjoy one or all three in fb acfass.
• 34:36
  Speaker 7: You could be in San Croix to experience their Crucian
• 34:38
  Speaker 7: Christmas Festival taking place December through early January. Discover the
• 34:42
  Speaker 7: magic of this long standing tradition with incredible food, music
• 34:45
  Speaker 7: and entertainment. Or just go soak up the sun, strong,
• 34:48
  Speaker 7: long white sand beaches and feel the rhythm with the
• 34:50
  Speaker 7: heartbeat of the Islands. The USBI is America's Cribbean Paradise.
• 34:54
  Speaker 7: Playing your winterscape now at visit USBI dot com. That's
• 34:57
  Speaker 7: visit USBI dot com.
• 34:59
  Speaker 3: Fight.
• 34:59
  Speaker 2: Do you mind if I start off tech us off Chuck.
• 35:02
  Speaker 2: I want to start this piece of The New York Times.
• 35:04
  Speaker 2: It's titled Meta's New Ai superstars are chafing against the
• 35:08
  Speaker 2: rest of the company, And quite honestly, most of this
• 35:10
  Speaker 2: article I don't really find that interesting. It's okay, like,
• 35:13
  Speaker 2: there's a bunch of new people in town trying to,
• 35:16
  Speaker 2: you know, help Meta build AI, and they're fighting with
• 35:18
  Speaker 2: the old guard about you know, what their.
• 35:20
  Speaker 3: Resources should be used.
• 35:21
  Speaker 2: For sure, that happens at every big company, especially when
• 35:24
  Speaker 2: you pay like billions of dollars to bring in talent.
• 35:26
  Speaker 3: Okay, fine, like there's nothing that interesting to me there.
• 35:29
  Speaker 2: But I did find something interesting about two thirds of
• 35:31
  Speaker 2: the way through the piece, I will quote the New
• 35:35
  Speaker 2: York Times. Mister Zuckerberg and mister Wang then went on
• 35:39
  Speaker 2: a recruiting blitz for the top AI researchers, offering pay
• 35:43
  Speaker 2: packages worth hundreds of millions. Mark Chen, open AI's chief
• 35:47
  Speaker 2: research officer, said, mister Zuckerberg has gone as far as
• 35:50
  Speaker 2: delivering homemade soup to the doorsteps of some open ai
• 35:54
  Speaker 2: employees to persuade them to join his company. So what
• 35:58
  Speaker 2: I find interesting here is a like, I wonder has
• 36:02
  Speaker 2: duck soup? Is like, you know what what kind of
• 36:04
  Speaker 2: soup we see? You know, a chicken noodle?
• 36:06
  Speaker 1: Guy?
• 36:06
  Speaker 3: Was he broccoli? Cheddar? Was the chili? Was it the chowder?
• 36:09
  Speaker 2: Like one question, but the other piece that I find
• 36:13
  Speaker 2: interesting just in the context of all this AI bologney.
• 36:16
  Speaker 2: So I'm just I'm getting there, man, I'm getting there.
• 36:22
  Speaker 2: Despite the fact that we think AI is going to
• 36:24
  Speaker 2: change the world by like getting rid of humans, the
• 36:28
  Speaker 2: pitch to try to get someone to come to your company.
• 36:31
  Speaker 4: Is a distinctly human activities.
• 36:32
  Speaker 2: Is trying to bring them soup in person? Like isn't
• 36:38
  Speaker 2: that just doesn't that sum up everything here? Like, yes,
• 36:42
  Speaker 2: we're trying to build tools to replace people because we
• 36:44
  Speaker 2: don't like people.
• 36:47
  Speaker 3: But here's some soup that I made. Yeah, maybe it's.
• 36:50
  Speaker 5: Pretty uniquely dystopian. I want to talk about houses. We
• 36:53
  Speaker 5: haven't checked in on this stat in a little while.
• 36:56
  Speaker 5: The total listing count in the United States as of October,
• 37:00
  Speaker 5: which is the most recent data that I can find,
• 37:02
  Speaker 5: hit one point one million. We are closer than we
• 37:05
  Speaker 5: have been since COVID to a more normalized housing market.
• 37:10
  Speaker 5: That listing count is now ninety one percent of where
• 37:13
  Speaker 5: we were in October of twenty nineteen, so single families
• 37:16
  Speaker 5: only four percent below, right, So we are pretty darn close.
• 37:20
  Speaker 5: In spite of that, the sales price data that I
• 37:23
  Speaker 5: have goes as far as Q two of twenty twenty five,
• 37:26
  Speaker 5: so we're a little bit far behind on this one.
• 37:28
  Speaker 5: But the listing, sorry, the median sales price for houses
• 37:32
  Speaker 5: sold in the United States are still twenty seven point
• 37:36
  Speaker 5: four percent higher than.
• 37:38
  Speaker 4: Where we were in Q two of twenty nineteen.
• 37:40
  Speaker 5: So I know that everyone listening has experienced this directly
• 37:44
  Speaker 5: and is kind of snickering, like, yeah, no kidding, Mike,
• 37:47
  Speaker 5: But that is, you know, pretty compelling case of supply
• 37:52
  Speaker 5: and demand.
• 37:53
  Speaker 4: Here.
• 37:53
  Speaker 5: Supply is nearly back to where we were in twenty nineteen,
• 37:57
  Speaker 5: prices staying considerably higher than where they were back in
• 38:02
  Speaker 5: twenty nineteen, Yeah, and but falling falling consistently since Q
• 38:08
  Speaker 5: four of twenty twenty two.
• 38:09
  Speaker 2: I'll point down it's it's going to be a one
• 38:11
  Speaker 2: to three year adjustment period for home prices, and on
• 38:15
  Speaker 2: the back end of that, we will feel that affordability
• 38:18
  Speaker 2: is back into a more normal range that we are
• 38:21
  Speaker 2: used to relative to our incomes. But it's going to
• 38:25
  Speaker 2: take some time to get there, and there's going to
• 38:27
  Speaker 2: be some pain in the housing sector along the way. Unfortunately.
• 38:30
  Speaker 2: That's kind of what it looks like let's take a
• 38:33
  Speaker 2: quick break for the rest of the day. We're gonna
• 38:35
  Speaker 2: finish the week up tomorrow. We'll finish it strong. We've
• 38:37
  Speaker 2: got Broadcom earnings tonight, so I'm sure we'll be covering
• 38:41
  Speaker 2: those tomorrow, given how big the company is. Market's still
• 38:44
  Speaker 2: mixed now up one percent, SMP down and a half,
• 38:47
  Speaker 2: NASDAC down one and a quarter.
• 38:50
  Speaker 3: We'll see it tomorrow on the Financial Exchange.