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Have retail investors ditched buying-the-dip? · The Financial Exchange Show

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1:02
Speaker 1: This is the Financial Exchange with Chuck Zada and Paul Lane.
1:08
Speaker 2: Out two on the Financial Exchange, Chuck Paul Tucker with you,
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Speaker 2: and we got markets having.
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Speaker 3: A cautious rally today.
1:15
Speaker 2: Thus far, the Dow is up two hundred and thirty
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Speaker 2: four points, about half a percent, The s and P
1:22
Speaker 2: up thirty one points, also about half a percent. In
1:24
Speaker 2: the NASDAK it's about one hundred and thirty points, about
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Speaker 2: three quarters of percent. So nice little relief rally day.
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Speaker 2: But remember these indices were all down more than this yesterday,
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Speaker 2: the SMP down about double can't remember on the Nasdaq
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Speaker 2: or Dow exactly how much they fell, but.
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Speaker 3: It was worse.
1:41
Speaker 2: The tenure US Treasury not really moving much before the
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Speaker 2: Fed meeting this afternoon. US Tenure Treasury at four point
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Speaker 2: three zero two percent. That's up two point one basis points.
1:53
Speaker 2: Right now, the national fixed rate mortgage for thirty years,
1:58
Speaker 2: according to Mortgage News Daily, still sits at six point
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Speaker 2: seven eight percent, So we've been just hanging around that
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Speaker 2: six and three quarters range for the last couple of
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Speaker 2: weeks now, after being up in the low sevens earlier
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Speaker 2: this year.
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Speaker 3: Other things that.
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Speaker 2: Are moving West Texas Intermediate for oil is it sixty
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Speaker 2: seven zero four fourteen cents a barrel, triplea national averagur
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Speaker 2: gas prices up now, gie, big jump.
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Speaker 3: Actually this is actually I saw this.
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Speaker 2: There are some refinery switches that are going on right now,
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Speaker 2: and so gas prices up two point four cents a
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Speaker 2: gallon over night to three ten and two tenths of ascent.
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Speaker 2: New England actually still kind of ahead of the curve
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Speaker 2: on this, but the expectations are that New England's going
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Speaker 2: to start seeing some upward pricing pressure in the next
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Speaker 2: figure several weeks. This just due to the switchover from
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Speaker 2: the winter blends of gasoline to the summer blends. Finally,
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Speaker 2: we've got gold today down four dollars and thirty cents
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Speaker 2: announced to three thousand and thirty six dollars and fifty cents,
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Speaker 2: and so overall, nothing moving too much in advance of
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Speaker 2: well the FED meeting this afternoon.
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Speaker 3: Let's talk a little bit.
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Speaker 2: About one of the big trends that we've seen in
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Speaker 2: equity markets so far this year, and specifically what that
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Speaker 2: is is that, well, the best way to put it
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Speaker 2: is that international markets are doing a lot better than
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Speaker 2: US markets generally. So here's what we've seen, and this
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Speaker 2: is through the close yesterday that I have here, and
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Speaker 2: I'm just going to quote level changes, not total return,
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Speaker 2: because I'm not factoring in dividends, because they can be
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Speaker 2: taxed all kinds of differently depending on where you are
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Speaker 2: in the world. The S and P five hundred year
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Speaker 2: to date as of yesterday was down four point five
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Speaker 2: to four percent. The MSCI Emerging Markets Index is up
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Speaker 2: six point four to eight percent, the MSCI EFA Index
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Speaker 2: Europe Asia Far East up eleven point zero six percent,
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Speaker 2: MSCI Japan up four point four seven MSCI Europe of
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Speaker 2: fifteen point three. Basically, where I'm going on this is
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Speaker 2: that unlike the last fifteen years or so, where US
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Speaker 2: markets and specifically the S and P five hundred have
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Speaker 2: just absolutely dominated their overseas counterparts, the opposite is absolutely
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Speaker 2: happening this year, and it is something that I think
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Speaker 2: has caught a lot of investors kind of off guard
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Speaker 2: because they weren't prepared for it. And so what you
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Speaker 2: are seeing here is kind of a reassessment of where
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Speaker 2: capital needs to flow, not just based on what's going
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Speaker 2: on in markets here, but also talking about, hey, what
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Speaker 2: fiscal plans are we seeing from Germany and potentially the
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Speaker 2: rest of the EU, How is trade going to be impacted,
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Speaker 2: hows that can impact how capital flows back and forth.
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Speaker 2: There's a lot going on here and it's something where
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Speaker 2: I know that again, no one knows where any of
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Speaker 2: this is going to go. But remember we've had basically
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Speaker 2: almost fifteen years of US outperformance compared to international It
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Speaker 2: would be surprising to me if all of a sudden
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Speaker 2: we sit here and we're like, well, that corrected itself
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Speaker 2: in three months. I guess we can call it a
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Speaker 2: day and go back to the SMP trouncing it. That
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Speaker 2: may very well happen, but I think that we have
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Speaker 2: to see how this plays out because there's a lot
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Speaker 2: that potentially is changing when it comes to global trade,
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Speaker 2: capital flows, and things like that over the course of
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Speaker 2: this year and into the future.
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Speaker 4: It's a really interesting idea to cover.
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Speaker 5: Like you mentioned, the S and P five hundred has
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Speaker 5: just crushed international markets for the longest time here, and
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Speaker 5: you've had a couple of different factors that have led
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Speaker 5: to the resurgence of whether it be the European markets
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Speaker 5: or the Asian markets.
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Speaker 4: You know, part of that was the.
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Speaker 2: UH can I just give some scale, like as to
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Speaker 2: the magnitude of what we've seen on this. So let's
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Speaker 2: go back to the start of the twenty tens. So
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Speaker 2: let's go back to one one twenty ten. Just as
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Speaker 2: an example, the S and P five hundred during that
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Speaker 2: time is up four hundred and five point eight percent.
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Speaker 2: The MSCI Emerging Markets Index is up fifteen point seventy four.
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Speaker 2: The MSCI EFA is up fifty eight point nine to one,
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Speaker 2: the MSCI Japan's up eighty six point five two, MSCI
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Speaker 2: Europe is up sixty point one four. So just to
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Speaker 2: give you a sense of the scale here, we're not
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Speaker 2: talking like the US. You know, the S and P
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Speaker 2: outperformed these other indices by twenty thirty or forty percent
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Speaker 2: over that time. I mean, in the case of emerging markets,
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Speaker 2: emerging markets returned like one percent a year. Again, this
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Speaker 2: is a level change. It's not factoring in dividends, so
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Speaker 2: you know, take that for what it's worth. But in
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Speaker 2: terms of you know, stock like capital appreciation, MSCI Emerging
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Speaker 2: Market indext basically returned one percent a year for the
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Speaker 2: last fifteen years, and the S and P five hundred
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Speaker 2: returned fifteen sixteen percent over that time. So, like it's
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Speaker 2: just huge scale that we're talking about in terms of
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Speaker 2: how things have gone.
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Speaker 5: And part of the correction is valuations returning back. We've
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Speaker 5: talked about before that whether you're looking at four pe
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Speaker 5: price of sales, any type of valuation metric for the
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Speaker 5: s and P five hundred, we were at levels that
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Speaker 5: we haven't seen since the late nineties. So some of
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Speaker 5: this selloff could be due to just that there was
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Speaker 5: a significant amount of market euphoria really after November and
7:14
Speaker 5: the end of twenty twenty four. And then you've also
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Speaker 5: had some geopolitical events occur. Obviously the tariffs, which we've
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Speaker 5: spoken about quite a bit, but other countries taking different
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Speaker 5: policy stances. Germany we talked about a little bit on
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Speaker 5: yesterday's show, the expansion of their fiscal policy, a country
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Speaker 5: that had typically been very conservative from a debt standpoint,
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Speaker 5: staying that they're going to be a little bit more
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Speaker 5: comminative and raising more debt. You've also had interactions between
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Speaker 5: Brazil and China to kind of increased trade activity between
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Speaker 5: those two countries, and just sort of global economic policy
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Speaker 5: outside of the US loosing it up a little bit
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Speaker 5: compared to a US policy that has been tightening over
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Speaker 5: the course of the last couple of years or so.
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Speaker 5: And then you also have had some events out of China,
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Speaker 5: the Deep Seek event that occurred in late January, and
8:01
Speaker 5: then Bid yesterday coming out with allegedly a electric vehicle
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Speaker 5: batty that could charge in five minutes, causing a lot
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Speaker 5: of these shakeups that we've seen here.
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Speaker 4: So it's been interesting to follow.
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Speaker 2: It has, and again I don't think any of us
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Speaker 2: know exactly how this is going to play out in
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Speaker 2: the long run. Like if if you had pulled investors
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Speaker 2: back at the start of twenty ten and just ask them, hey,
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Speaker 2: over the next fifteen years, what do you think the
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Speaker 2: average rate of return for US and international stocks is
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Speaker 2: going to be over that time, and you like put
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Speaker 2: it into like your traditional like three big buckets like US, International, Developed,
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Speaker 2: and emerging markets. Here's what most people probably would have
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Speaker 2: come back with then. And this is just from again
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Speaker 2: how like what you see with like big institutional investment consultants.
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Speaker 2: They would have said, okay, US stocks are going to
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Speaker 2: return nine percent a year, International stocks, you know, developed
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Speaker 2: are going to return eight and a half percent a year,
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Speaker 2: Emerging markets are going to return ten percent a year,
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Speaker 2: and they would.
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Speaker 3: Have called it a day.
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Speaker 2: And it's not to say that like all institutional investment
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Speaker 2: consultants are dumb and they should have seen it coming.
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Speaker 2: It's more like you don't know how small changes potentially
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Speaker 2: evolve into you know, big investment differences over a fifteen
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Speaker 2: year period, and so you know, to look at this
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Speaker 2: right now and try to have any you know, predictive
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Speaker 2: value as to well, this is what we're seeing like
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Speaker 2: the first few months of this year, and this is
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Speaker 2: what it means like for the long term. We have
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Speaker 2: no idea, but what I can tell you is that
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Speaker 2: if you look at the period before what I just referenced,
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Speaker 2: so I was talking about twenty ten through twenty twenty four,
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Speaker 2: Let's now go look at the fifteen year period before.
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Speaker 2: And I don't know what I'm gonna find. By the way, here,
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Speaker 2: so like that we're we're gonna do this live. Here's
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Speaker 2: what we see. If we go from one to one
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Speaker 2: of ninety five through twelve thirty one of two thousand
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Speaker 2: and nine, here are the returns for the same indices
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Speaker 2: that I just gave you. The S and P five
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Speaker 2: hundred during that time returned to one hundred and forty
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Speaker 2: two point eight percent the MSCI Emerging Markets Index was
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Speaker 2: one hundred point nine, the MSCI EFA was fifty two
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Speaker 2: thirty one, MSCI Japan was thirty four twenty three, and
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Speaker 2: MSCI Europe was one thirty three point seven in terms
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Speaker 2: of percentage. So overall, US stocks still you know, carried
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Speaker 2: the day for that fifteen year period, but by a
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Speaker 2: much smaller amount compared to Europe and EM and especially
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Speaker 2: I mean again, EM was the second best performing you know, category,
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Speaker 2: second best performing index here, whereas it was the worst
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Speaker 2: in the other one. Just because something does well even
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Speaker 2: for fifteen years, doesn't mean anything about where it's gonna
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Speaker 2: go the next fifteen So I don't know what any
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Speaker 2: of what we're seeing, like if if what we're seeing
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Speaker 2: today means anything. Because we're going through a period where
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Speaker 2: there are some potentially pretty dramatic shakeups of world trade
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Speaker 2: and capital flows on the horizon. We've never lived through this,
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Speaker 2: We've never lived through potentially something of this scale moving
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Speaker 2: this quickly through the world financial system, in the world
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Speaker 2: trade system. Anyone who says like they know how this
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Speaker 2: is gonna play out, I think is lying to themselves.
11:24
Speaker 3: I don't know. I don't know who it's gonna be
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Speaker 3: good for.
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Speaker 2: I don't know who it's gonna be bad for, you know, like,
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Speaker 2: I have no clue we're talking about. We're talking about
11:34
Speaker 2: things that have not been in mainstream consciousness for eighty years.
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Speaker 5: Yeah, I'm just not willing to print this whole story
11:42
Speaker 5: that because of the teriff situation. It's just so tenuous.
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Speaker 5: It's it's hard to make sweeping projection. I mean it's
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Speaker 5: hard always, but even more challenging when the crux of
11:53
Speaker 5: the concerns with the US market are tied to tariffs,
11:56
Speaker 5: which are so.
11:58
Speaker 4: Constantly evolving.
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Speaker 2: What it's a if the average US teriff rate at
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Speaker 2: the end of this year is twenty five percent, No,
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Speaker 2: would it surprise you if the average US tariff right
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Speaker 2: at the end of this year is zero?
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Speaker 4: No, that's no.
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Speaker 2: They have no idea like this could all end up
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Speaker 2: being resolved in a bunch of negotiation in there and
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Speaker 2: no tariffs that are.
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Speaker 5: Imposed by the end of this year. Exactly exactly. That's
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Speaker 5: where I come at. It is just open on each
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Speaker 5: side to either either outcome.
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Speaker 3: Let's take a quick break here.
12:24
Speaker 2: When we come back, we'll do a little bit of trivia,
12:26
Speaker 2: and then we'll talk about what retail investors have been
12:28
Speaker 2: doing recently.
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13:46
Speaker 2: Com peace in CNBC, retail investors ditched by the mentality
13:51
Speaker 2: during market correction. I'll quote here, retail outflows from US
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Speaker 2: equities roase to about four billion dollars over the past
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Speaker 2: two weeks as tariff tariff chaos and mounting economic concerns
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Speaker 2: caused a three week pull back in the S and
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Speaker 2: P five hundred. Discording to data from Barkley's I don't
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Speaker 2: really know what to make of this because I've seen
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Speaker 2: some conflicting reports about how like money move. Like I
14:13
Speaker 2: don't know what you can actually believe as far as
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Speaker 2: like retail's doing this or retail's doing that, because I've
14:20
Speaker 2: seen data that is again just kind of all different
14:23
Speaker 2: on this.
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Speaker 3: I also don't know why, I know why you would.
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Speaker 2: In theory try to, you know, figure out like what
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Speaker 2: retail is or isn't doing, because historically, you know, aside
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Speaker 2: from a very brief period in twenty twenty one, retail
14:38
Speaker 2: generally is kind of referred to as the dumb money.
14:43
Speaker 2: It's not my term, it's just, you know, how it's
14:45
Speaker 2: referred to in the biz. That also implies the existence
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Speaker 2: of smart money, which, as we've discussed, doesn't really exist either.
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Speaker 2: Everyone's like, oh, the smart money is the bond so well, yeah,
14:54
Speaker 2: why do all bond traders get smoked the last few years,
14:56
Speaker 2: you know, in terms of how things were moving, and well,
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Speaker 2: the bond market knows what's going on.
15:00
Speaker 3: I know it doesn't.
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Speaker 2: It didn't think that rates were going up as much
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Speaker 2: as they were back in twenty twenty two.
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Speaker 3: So I never quite know what to do with pieces
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Speaker 3: like this.
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Speaker 2: I generally try just to not read them, but I
15:13
Speaker 2: appreciate Tucker putting it in our stacks so that we
15:16
Speaker 2: can talk about it, because again, people seem to be like, oh,
15:18
Speaker 2: like retail traders, weren't. I just I don't know what
15:22
Speaker 2: to do with something like this.
15:23
Speaker 5: The retail flows hard to track, but what we can
15:26
Speaker 5: likely agree on is that the speculative sort of flavor
15:31
Speaker 5: of the market has subsided quite a bit year to date.
15:35
Speaker 5: It doesn't seem like there's the same market for that
15:38
Speaker 5: there was, you know, over the course of the last
15:41
Speaker 5: couple months in late last year.
15:43
Speaker 2: Seems like it, Yeah, seems like it. I find something
15:47
Speaker 2: much more interesting here in this piece. Meta becomes Final
15:51
Speaker 2: Magnificent seven stock to turn negative in twenty twenty five.
15:56
Speaker 2: So here's what you're seeing year to date for mags
16:00
Speaker 2: in companies. Microsoft off about eight percent, in Vidio down
16:02
Speaker 2: about twelve, Apple down about thirteen, Amazon down eleven, Tesla
16:07
Speaker 2: down forty two, Google down thirteen, and Meta down down
16:11
Speaker 2: about half a percent. But obviously met has been holding
16:14
Speaker 2: up better than the other one's. Apple wasn'tntil recently, and
16:17
Speaker 2: then Apple kind of puked all over itself for the
16:19
Speaker 2: last you know, week and a half or so. But
16:22
Speaker 2: the interesting thing right now is that for the first
16:24
Speaker 2: time since November of twenty two, this is the first
16:28
Speaker 2: time that all seven of the mag seven names are
16:30
Speaker 2: underperforming the S and P five hundred for the last
16:33
Speaker 2: three months.
16:34
Speaker 4: Wow.
16:34
Speaker 5: I mean, they have just carried the performance so much
16:38
Speaker 5: over the course of the last couple of years that
16:42
Speaker 5: it probably was about time, right, Like, you can't continue forever.
16:45
Speaker 2: We're not going to become the United States of Microsoft.
16:47
Speaker 2: We'd have to change the initials first and foremost, it's
16:49
Speaker 2: more likely to be the United States of Apple.
16:51
Speaker 5: I mean, we talked about the waitings that they've had
16:53
Speaker 5: in the S and P five hundred. I know that
16:54
Speaker 5: was up in and around thirty plus percent or so.
16:57
Speaker 5: I'm not sure if some of Tesla's sell off and
16:59
Speaker 5: some of these other ones. You know what it looks
17:01
Speaker 5: like today. Obviously, I'm sure it's down slightly, probably not
17:03
Speaker 5: a tremendous amount, but the waiting was just so significant,
17:07
Speaker 5: and the amount of performance that they've added to the
17:09
Speaker 5: S and P five hundred of the last couple of
17:11
Speaker 5: years is massive, So it probably was time at some point.
17:14
Speaker 5: But it doesn't look like there's any real near term
17:18
Speaker 5: catalyst for any of those seven names for the time being,
17:22
Speaker 5: but we'll see.
17:24
Speaker 2: Sticking with MAG seven. In videos, CEO Jensen Huang said
17:28
Speaker 2: that AI computing needs need to scale up by a hundredfold.
17:34
Speaker 3: That's a big number.
17:36
Speaker 2: And this is basically as he's talking about, Hey, like,
17:39
Speaker 2: this is in order to get to the kind of
17:40
Speaker 2: advancements we think are possible. This is how much computing
17:43
Speaker 2: power you need, which then raises the question how much electrical.
17:46
Speaker 4: Power do you need?
17:46
Speaker 2: And where's that gonna all come from? But I guess
17:48
Speaker 2: we can, you know, just handwave that away with well,
17:51
Speaker 2: maybe we can turn a nuclear power plant back on
17:54
Speaker 2: or something like that. And the interesting thing to me
17:58
Speaker 2: about this is is that and again what I find
18:03
Speaker 2: interesting about AI is the stuff that we're seeing that's
18:07
Speaker 2: developed now is being built on the chips that were
18:10
Speaker 2: delivered a year ago. So I do have interesting questions about, Hey,
18:14
Speaker 2: in Vidio's new Blackwell chips that have started being delivered
18:17
Speaker 2: in the last couple months, the stuff that's powered by
18:19
Speaker 2: them is not really going to show up for us
18:22
Speaker 2: until later this year, just because you know, with that
18:25
Speaker 2: kind of increase in computing power, you can't just build
18:27
Speaker 2: on the old architecture. So I do, you know, kind
18:31
Speaker 2: of have this idea in my mind that yeah, you
18:33
Speaker 2: still could see some pretty incredible transformations here, but I'm
18:37
Speaker 2: also still trying to figure out. To me, it seems
18:42
Speaker 2: like it's more on the corporate side, and that makes
18:45
Speaker 2: it a CAPEX issue more than anything else, because I
18:48
Speaker 2: don't see any kind of killer AI app for individuals.
18:56
Speaker 5: I have. I found using chattbt more on a day
19:00
Speaker 5: to day basis that it's help with things. I'm not
19:02
Speaker 5: telling you it's you know, revolutionized in my day to day,
19:05
Speaker 5: but starting to understand, you know how it can just
19:09
Speaker 5: be so much more valuable than googling something to put
19:11
Speaker 5: out a question to chat TBT.
19:13
Speaker 3: For get how much search engines suck.
19:15
Speaker 5: Now, Yeah, I Honestly, I doubted you before with that,
19:18
Speaker 5: but now you see the difference in the clarity and
19:20
Speaker 5: the thoroughness of the answers versus just trying to push
19:23
Speaker 5: a website link for someone to buy something.
19:26
Speaker 2: Now you also do get kind of the weird AI
19:28
Speaker 2: answers that come up from time to time, so you
19:30
Speaker 2: do have to fact check it, but brain assualt. Let's
19:31
Speaker 2: be honest, you have to do that with search. Also
19:33
Speaker 2: a lot quick break here Trive Answers next.
19:41
Speaker 1: Bringing the latest financial news straight to your radio every day.
19:45
Speaker 1: It's the Financial Exchange on the Financial Exchange Radio Network
19:51
Speaker 1: tekst US six one, seven, three, six, two thirteen eighty five.
19:55
Speaker 1: With your comments and questions about today's show and let
19:58
Speaker 1: us know what you think about the stories you're covering.
20:00
Speaker 1: This is the Financial Exchange Radio Network.
20:06
Speaker 6: Well, seeing that it's Bruce Willis's seventieth birthday, we asked
20:09
Speaker 6: the trivia question what is the highest grossing film of
20:13
Speaker 6: Bruce Willis's career. That would be The Sixth Sense, which
20:17
Speaker 6: earned six hundred and seventy two point eight million dollars worldwide.
20:23
Speaker 6: Winner today of the Financial Exchange Show T shirt was
20:26
Speaker 6: Joshua from Portland, Maine. Congrats to Josh, and we play
20:30
Speaker 6: trivia every day here on the Financial Exchange. See complete
20:34
Speaker 6: contest rules at Financial Exchange Show dot com.
20:38
Speaker 2: Taco Bell parent Young Brands partners with Nvidia to speed
20:43
Speaker 2: up its use of a I.
20:46
Speaker 3: So when we talk.
20:48
Speaker 2: About fast food companies trying to do AI, Paul, what
20:55
Speaker 2: the heck are we talking about here? Like what are
20:58
Speaker 2: they saying they're gonna do.
20:59
Speaker 5: With So basically what they're working with Nvidia on is
21:04
Speaker 5: piloting five hundred restaurants a broader role out of the
21:07
Speaker 5: technology that would.
21:09
Speaker 4: Basically be used to.
21:11
Speaker 5: Sort of do a performance assessment of these different food chains,
21:16
Speaker 5: looking at using it for drive through orders, checking the
21:21
Speaker 5: accuracy of orders, how to schedule different workers effectively in
21:25
Speaker 5: place suppliers. Those would be kind of the items that
21:28
Speaker 5: would try and work through to make the businesses and
21:33
Speaker 5: franchises more efficient.
21:37
Speaker 4: You have skepticism.
21:38
Speaker 2: I don't know, like what what what are you gonna
21:41
Speaker 2: what are you going to get from.
21:42
Speaker 4: This the order taking?
21:43
Speaker 6: I don't understand how AI could be a factor. That
21:47
Speaker 6: doesn't make sense to me.
21:49
Speaker 2: I guess I'm just trying to figure out, like why
21:52
Speaker 2: do you need artificial intelligence to tell you if you're
21:56
Speaker 2: getting your orders right or not right?
21:59
Speaker 1: What?
21:59
Speaker 2: What what makes AI able to do that in a
22:02
Speaker 2: way that regular computing doesn't.
22:08
Speaker 5: I'm just wouldn't you have to manually market if you
22:11
Speaker 5: are getting them incorrectly?
22:13
Speaker 2: Well, how would AI know if you're getting it incorrect
22:15
Speaker 2: without you manually marking it somewhere to begin with?
22:17
Speaker 5: Like if it can take I don't know if it
22:19
Speaker 5: can do this take the voice input of the order
22:21
Speaker 5: versus what the printed ticket is.
22:25
Speaker 3: Okay, I guess I.
22:28
Speaker 4: Just I'm not behind the under the hood.
22:31
Speaker 3: You can't do that.
22:31
Speaker 2: With like regular voice recognition right now. I guess my
22:35
Speaker 2: question is what are we actually branding is AI and
22:37
Speaker 2: what's just computers being computers.
22:42
Speaker 5: I don't know the intricacies of what they're exactly gonna do,
22:44
Speaker 5: but obviously it's an aim at increased productivity.
22:47
Speaker 4: I get that part.
22:48
Speaker 2: It just feels like we're getting a little bit buzzworthy
22:51
Speaker 2: with it at this point.
22:52
Speaker 4: Oh, I mean, we're the ship.
22:54
Speaker 3: I forget who it was.
22:55
Speaker 2: I think it was it was one of the other
22:57
Speaker 2: fast food chains was talking about how they were gonna
22:59
Speaker 2: use it to help like drive predictive algorithms for what
23:02
Speaker 2: people are gonna order and I'm.
23:03
Speaker 4: Like, well, that can already be done. Well done, guys.
23:06
Speaker 3: If it's hot, they're gonna order more mcflurries.
23:09
Speaker 4: Yeah.
23:09
Speaker 5: I mean, you know, like and that's been around like
23:12
Speaker 5: that Starbucks, the big chains have data on that. That's
23:16
Speaker 5: why the mobile apps are something like. But this is
23:18
Speaker 5: the thing, like the like generative AI. The promise of
23:22
Speaker 5: it is, hey, it can right, it can create, it
23:26
Speaker 5: can do not it can analyze data because we like
23:28
Speaker 5: we already have computer programs that can analyze data that
23:31
Speaker 5: that's existed for a while. So this too, like why
23:35
Speaker 5: do you need Nvidia chips to figure out if you're
23:40
Speaker 5: getting your orders accurate or not? And that's what I
23:44
Speaker 5: struggle with.
23:44
Speaker 2: I guess is, you know, the promise of this generation
23:49
Speaker 2: of artificial intelligence is it's generative. It helps to like
23:53
Speaker 2: create something and put it out into the world. Why
23:57
Speaker 2: does Taco Bell need that to figure out if their
24:00
Speaker 2: order accuracy is good? And so I'm just kind of
24:05
Speaker 2: struggling there. But I admit to you know, struggling sometimes
24:09
Speaker 2: even when being faced with really obvious things. So your
24:13
Speaker 2: mileage may vary. Speaking of mileage, butch Wilmore and Sunny Williams.
24:19
Speaker 2: They're back on Earth. Eiterview happened to watch the splashdown
24:22
Speaker 2: of the capsule yesterday. Yeah, so they're back. I would
24:29
Speaker 2: imagine that probably. I know that, you know, while they're
24:33
Speaker 2: up in space, they have some you know, treadmills and
24:35
Speaker 2: things they can run on and waits to try to,
24:37
Speaker 2: you know, keep themselves, you know, resistance bands try to
24:40
Speaker 2: keep themselves strong. But I got to imagine after nine
24:42
Speaker 2: months in space, those first steps on Earth gravity are
24:46
Speaker 2: probably not the easiest. But they're back, and I got
24:51
Speaker 2: to say, pretty cool. And hey, nine months in space,
24:56
Speaker 2: I'm willing to venture. They probably aren't itching to get
24:59
Speaker 2: back up there, you know, anytime.
25:00
Speaker 6: So remind me how long were they supposed to be
25:02
Speaker 6: up there?
25:02
Speaker 4: A week? Oh man?
25:06
Speaker 3: A week?
25:06
Speaker 1: Oh boy?
25:07
Speaker 2: Yeah, it's they They they went around the Earth four thousand,
25:11
Speaker 2: five hundred and seventy six times and traveled one hundred
25:13
Speaker 2: and twenty one million miles.
25:15
Speaker 4: What a long, strange journey it's been, dude.
25:18
Speaker 2: If question, from a tax perspective, does being on the
25:24
Speaker 2: International Space Station count as being out of the country
25:27
Speaker 2: and how does that affect your filing for twenty twenty
25:31
Speaker 2: four and part of twenty twenty five.
25:34
Speaker 4: Were they paid overtime?
25:36
Speaker 1: Right?
25:36
Speaker 2: Is it do you receive overtime? Is it federally taxable? Like?
25:40
Speaker 5: How does it all work? Maybe they just give you
25:44
Speaker 5: a break. You're like, you know what, don't have to
25:46
Speaker 5: pay in this this year? You know we screwed you enough?
25:49
Speaker 2: Is it like Armageddon where they never have to pay
25:52
Speaker 2: taxes ever again?
25:54
Speaker 3: After doing this? Just a question.
25:58
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27:04
Speaker 2: Paul, let's talk a little bit about what BYD demonstrated yesterday.
27:08
Speaker 2: BYD if you're not familiar with them, it's not bring
27:11
Speaker 2: your own drink, but rather it is the Chinese.
27:15
Speaker 4: Duck really liked that one, I always, But.
27:21
Speaker 2: Rather they are the Chinese originally battery manufacturer that now
27:24
Speaker 2: has become an ev manufacturer, and they demonstrated a vehicle
27:29
Speaker 2: yesterday that using what they call their Super E platform,
27:33
Speaker 2: can basically add two hundred and fifty miles of range
27:36
Speaker 2: in five minutes, which would effectively eliminate all range anxiety
27:40
Speaker 2: if it were true. Now I'm not saying it's not true,
27:42
Speaker 2: but rather it's unclear what the long term impact is
27:45
Speaker 2: on the battery, how it impacts you know, how many
27:47
Speaker 2: charging cycles you can get through doing this, And this
27:51
Speaker 2: is before you even get to the fact that you
27:53
Speaker 2: are talking about basically insanely high levels of power transmission
27:59
Speaker 2: in order to do that. They've even said themselves, Hey,
28:02
Speaker 2: this is probably only going to be available in places
28:05
Speaker 2: near high voltage architecture to begin with because of the
28:10
Speaker 2: sheer power demands of doing this, And so it's not
28:14
Speaker 2: like you're just going to be able to do this
28:16
Speaker 2: anywhere in the country. But certainly a pretty big milestone
28:21
Speaker 2: that they're talking about here.
28:22
Speaker 4: Certainly would be the case.
28:23
Speaker 5: You do have to take this, like you mentioned, a
28:25
Speaker 5: little bit with a grain of solid It's sort of
28:28
Speaker 5: you mentioned being close to a significant power source, and
28:31
Speaker 5: anytime you get an auto announcement like this, it's certainly significant.
28:35
Speaker 5: But it has to really bear fruit in the market
28:38
Speaker 5: to see if this is actually the case. But if
28:39
Speaker 5: it is, it's a total game changer. You're right, I mean,
28:42
Speaker 5: just for basis of comparison, Tesla's most sophisticated charger on
28:46
Speaker 5: the market, I believe we were covering yesterday is in
28:49
Speaker 5: around fifteen minutes to charge up fully, so to be
28:52
Speaker 5: able to cut that down from fifteen to five is
28:55
Speaker 5: incredibly significant. Not to mention, the cost of these vehicles
28:59
Speaker 5: is making a significant inroads in dent in Tesla's demand globally.
29:05
Speaker 5: Obviously in the United States you can't purchase them, but
29:08
Speaker 5: they're going for less than thirty thousand bucks, so it
29:11
Speaker 5: remains a significant competitor to Tesla. And as we are
29:15
Speaker 5: covering yesterday, the Chinese in terms of their exports for
29:19
Speaker 5: auto vehicles, not only in the EV space, which we
29:22
Speaker 5: talk about a lot, but on the gas powered side
29:24
Speaker 5: of things. Their ability to churn out very cheap models.
29:28
Speaker 5: They're making significant inroads in Chili, Brazil and other countries
29:32
Speaker 5: in terms of their exports of gas powered vehicles in
29:34
Speaker 5: addition to the EV side.
29:35
Speaker 2: All right, we're now going to do a little bit
29:37
Speaker 2: of electrical trivia knowledge testing.
29:41
Speaker 3: Oh boy, Paul, can you tell me what a WAT is?
29:45
Speaker 2: Specifically, can you tell me what a WAT is as
29:47
Speaker 2: it relates to a vote without putting it into your
29:50
Speaker 2: computer right now?
29:53
Speaker 5: A WAT is a unit of power measuring the rate
29:57
Speaker 5: at which enery energy can be transferred to converted correct.
30:00
Speaker 2: Wats are basically like the flow now it has two components,
30:04
Speaker 2: which are voltage, which is basically like how fast is
30:08
Speaker 2: the elect like how many electrons? How fast is the
30:10
Speaker 2: electricity like moving there? And then you've got amps, which
30:13
Speaker 2: is basically the rate of the flow. And then the
30:16
Speaker 2: last one. Do either of you happen to know what
30:18
Speaker 2: an ohm is or an ome? I don't even know
30:20
Speaker 2: how to pronounce it, you know, quite honestly, I'm.
30:23
Speaker 4: Just thrilled I got through the WAT part of this segment.
30:28
Speaker 2: I don't know it's ohm, but that is the resistance
30:31
Speaker 2: of the wire that you are dealing with there. So again,
30:35
Speaker 2: when we talk about this and being able to charge
30:37
Speaker 2: these ultimately, you've got a couple things that you need here.
30:41
Speaker 2: The first is you need high voltage to be able
30:44
Speaker 2: to charge at these these speeds, which means if you
30:48
Speaker 2: just like out at your garage, you're not gonna be
30:51
Speaker 2: able to get to like thousand vault charging just because
30:55
Speaker 2: that's an insane amount of power to be running through
30:57
Speaker 2: anything in your home, Like, it's just nuts. You even
31:00
Speaker 2: talk about what like your you know, washing machine and
31:02
Speaker 2: dryer do they're on two hundred and forty vault circuits typically,
31:05
Speaker 2: so you're talking about something that's four x that and
31:07
Speaker 2: you're like, yeah, probably don't need that in my garage
31:10
Speaker 2: just because of the you know, risk and everything. And
31:12
Speaker 2: this is before you even get to okay, like what's
31:14
Speaker 2: the amperage of the wire to be able to actually
31:17
Speaker 2: carry all of that power? And then you know from
31:21
Speaker 2: there even okay, what's being supplied to my house and
31:25
Speaker 2: is there even enough power? Is there even enough you know,
31:29
Speaker 2: volume of power basically being supplied to my house to
31:33
Speaker 2: be able to charge at this rate? The answer is no.
31:35
Speaker 2: But you don't need to CAUs home charging. You say,
31:37
Speaker 2: I can do it overnight. But when you're talking about
31:39
Speaker 2: trying to get this out in the wild, hey, you
31:43
Speaker 2: can't just put this at like a gas station or
31:45
Speaker 2: a rest stop because most of them don't have the
31:47
Speaker 2: available infrastructure for this either. Yeah, so there's a lot
31:50
Speaker 2: of build out that needs to happen. And this is why, Yes,
31:53
Speaker 2: proving that you can do this from a tech perspective
31:56
Speaker 2: is really interesting, but logist being able to roll it
32:01
Speaker 2: out to hold out the story, you're not having five
32:03
Speaker 2: minute charging all over China in the next two years,
32:06
Speaker 2: not to mention.
32:07
Speaker 5: The cost that would be associated when you're talking about
32:09
Speaker 5: four to five times the you know, power required for
32:12
Speaker 5: your washer dryer. I can't imagine what a fill up.
32:15
Speaker 2: Yes, the holy grail of battery technology is still can
32:20
Speaker 2: you get to solid state batteries, lithium air batteries and
32:23
Speaker 2: things like that that are much lighter, much denser and
32:26
Speaker 2: as such you know, take a lot of that weight
32:28
Speaker 2: out of the EV but also can charge much more
32:31
Speaker 2: quickly without you know, having to go to this route.
32:34
Speaker 2: Those are things that become you know, more interesting. But hey,
32:37
Speaker 2: this is make no mistake, big milestone. But pump the
32:40
Speaker 2: brakes pun intended. Just take a quick break here and
32:44
Speaker 2: when we come back, we'll do a little bit of
32:46
Speaker 2: stack roulette.
32:47
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32:50
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33:19
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33:22
Speaker 6: Disabled American Veterans Department of Massachusetts. This year's five K
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33:55
Speaker 3: Paul, what do you have for me for Roulette of
33:57
Speaker 3: the Stack?
33:59
Speaker 5: There's some good ones in hecheck, but we've got a
34:02
Speaker 5: federal court case here where Netflix paid fifty five million
34:06
Speaker 5: dollars for a show, but the prosecutors are saying that
34:09
Speaker 5: the creator blew all of the money. So this is
34:13
Speaker 5: back in twenty eighteen, where the streaming boom was probably
34:16
Speaker 5: at its peak and there was just a ton of
34:19
Speaker 5: money being sloshed around to purchase new shows out there.
34:23
Speaker 5: So there's a show creator out there, Eric Rinch, who
34:26
Speaker 5: had really not done a tremendous amount of content. He
34:30
Speaker 5: had done a movie back in twenty thirteen called forty
34:33
Speaker 5: seven Ronin, and he had also put together in twenty
34:36
Speaker 5: sixteen twenty seventeen some sci fi series. But ultimately he
34:40
Speaker 5: was pitching his new series that was gonna have Keanu
34:43
Speaker 5: Reeves in it.
34:44
Speaker 4: And asked for a big k.
34:46
Speaker 5: Yeah, he was asking for some big bucks and Amazon
34:49
Speaker 5: was initially his agreement, but then Netflix came in at
34:52
Speaker 5: the last minute and gave him forty four million dollars
34:55
Speaker 5: upfront to make the series. All sounds well and good.
34:58
Speaker 5: Within eighteen months of sorry to make the series, he
35:01
Speaker 5: asked for an eleven million more. So what he did
35:04
Speaker 5: with this money, Chuck, was he transferred into his personal accounts,
35:08
Speaker 5: invested half of it into call auctions on an unnamed
35:11
Speaker 5: Borrow biofarmer company. He lost all that money there. He
35:14
Speaker 5: spent two point four million to buy five rolls Royces Ferrari.
35:19
Speaker 3: What do you need five for?
35:21
Speaker 5: It was six total, five rolls Roses and one Ferrari.
35:25
Speaker 5: And he put one point eight million to pay credit
35:28
Speaker 5: card bills and then he paid another How do you
35:31
Speaker 5: run up.
35:34
Speaker 3: What's your credit limit?
35:36
Speaker 6: I could do that pretty quick, no problem.
35:38
Speaker 4: He spent Oh this is crazy.
35:40
Speaker 2: Six guys single handedly distorting the FED statistics.
35:43
Speaker 5: This must be the most mind blowing of all six
35:46
Speaker 5: hundred and thirty eight thousand for two mattresses. How do
35:48
Speaker 5: you even how do you even get two mattresses to
35:50
Speaker 5: get up to six hundred and thirty eight thousand?
35:52
Speaker 3: What? What do you what do you get for that?
35:55
Speaker 3: What does it do?
35:56
Speaker 5: It's gotta be the biggest bed anyone's ever seen. So
36:01
Speaker 5: long story short, they are there in court fighting that out.
36:05
Speaker 5: No comment from from Netflix on this story. He also
36:09
Speaker 5: began acting erradically, as you can imagine with some of
36:12
Speaker 5: these spending spending items here, but he also said that
36:16
Speaker 5: he was began to have the ability to predict lightning
36:19
Speaker 5: strikes amidst going off the rails here.
36:21
Speaker 2: Oh that's what the mattresses are for. I'm sorry, I
36:29
Speaker 2: just six hundred and thirty eight thousand. That's one and
36:33
Speaker 2: a half times the median US home for two mattresses.
36:36
Speaker 4: I don't know. You know, the mattresses exist, who's selling them?
36:40
Speaker 2: You could have one and a half median houses or
36:43
Speaker 2: two mattresses, and you pick two mattresses.
36:45
Speaker 3: What do they do?
36:47
Speaker 4: Who sells those?
36:49
Speaker 2: Okay, I gotta figure out what we're doing here in
36:53
Speaker 2: terms of okay, most expensive mattresses.
36:57
Speaker 6: I saw one for like fifty eight thousand or somethings.
37:00
Speaker 2: Is rating from twenty thousand dollars to one point six
37:03
Speaker 2: million dollars. Okay, this here we go. So if you're
37:07
Speaker 2: looking for the expensive ones, uh this one is called
37:11
Speaker 2: the how do you pronounce the A with the two
37:14
Speaker 2: dots over it?
37:16
Speaker 3: Hostins Hostin's.
37:19
Speaker 4: The Grand Vita is one point six.
37:21
Speaker 2: It's handcrafted using the finest natural materials such as horsehair,
37:25
Speaker 2: cotton wool, and.
37:27
Speaker 3: Flax fla flax flax.
37:30
Speaker 2: Seed flax, not the seeds, but the actual flax. They
37:33
Speaker 2: give you the seeds and you can eat those as
37:35
Speaker 2: like a protein supplement. The manufacturing process involves meticulous attention
37:39
Speaker 2: to detail, with each mattress taking over three hundred and
37:41
Speaker 2: twenty hours of skilled craftsmanship to create, and ultimately it's
37:46
Speaker 2: going to be ruined when your cat throws up on it, Like,
37:52
Speaker 2: I don't know. This one here is called the Floating Bed.
37:54
Speaker 2: It's one point six million dollars. Uh it. It appears
37:58
Speaker 2: to float in mid air thanks to a sophisticated magnetic
38:01
Speaker 2: system that keeps it suspended off the ground.
38:06
Speaker 4: So basically, leave the mattresses.
38:09
Speaker 2: Can you like disable it if you run like a
38:11
Speaker 2: stronger magnet near it?
38:13
Speaker 1: Like?
38:13
Speaker 3: Is that how you wake someone?
38:14
Speaker 2: Up, Is you just like I don't know anyways, that's
38:21
Speaker 2: kind of disappointing that that stuff exists. Let's take a
38:24
Speaker 2: quick break. We'll see you tomorrow after the FED. We'll
38:27
Speaker 2: have all the recap on tomorrow's show.