Latest / Financial Survival Network / Navigating the Tricks and Trades of AI Stocks, Cryptocurrencies, and More - Chad Olivier #6075

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Navigating the Tricks and Trades of AI Stocks, Cryptocurrencies, and More - Chad Olivier #6075 · Financial Survival Network

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  I believe they're still gonna have They're gonna have companies out there that throw the
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  word AI in it, and they're just they're not very good with very well
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  run companies. But there are some big players out there that will do really
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  well because of this new technology and it's going to change the landscape and this
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  will be the next uh that should be the next big thing that's that's happening.
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  You're listening to Carrie Letz's Financial Survival Network where you get valuable information you
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  just can't find anywhere else to thrive in today's trying times. You need the
• 0:36
  Financial Survival Network now more than ever. Go to Financial Survivalnetwork dot com and
• 0:42
  get your free newsletter and gift. Financial Survival Network now more than ever,
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  And welcome you are listening to and watching the Financial Survival Network on your hot
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  Scarry Lutz, Hey, we're almost at the end. May got a week
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  to go. And new guest, Chad Oliviate, is with us. Chad,
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  you've been a financial professional for decades now and we want to ask you
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  some questions. You have a large group of clients who you've been advising financial
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  advisor. So the question is this inflation unexpectedly at least if you look at
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  the headlines, surprise experts are surprised. Inflation is now sticky. It went
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  from transitory to sticky, and maybe it'll go to semi permanent. What are
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  you telling your clients to do? Sure, so thanks for having me carry.
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  First of all, we make sure that our clients have a very sound
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  financial plan and we're not making i would say irrational decisions on what's directly right
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  in front of us. I mean, what we see now is, yes,
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  inflation is a little sticky, but the expectation is that it you know,
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  it may stay around this level for a little longer than expected. But
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  companies are doing really well. And so if you, uh, if you're
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  invested in companies that are are participating with high growth with low debt, you
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  will do really well. And we've and Kerrie, we've have client we've had
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  clients that I have been owning some companies. I'm not gonna name the specific
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  companies, but you know they one of them. There's a package in front
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  of my door daily. But you know we've been having them for twenty plus
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  years and we've gone through many, many different types of markets. And good
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  companies will do really well. So we we just make sure that clients clients
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  see that and don't just getting scared with the headlines. All right, So
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  so I take it listening to you. You're optimistic and you still think there's
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  opportunities out there. I am. I'm a I'm a glad as half full
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  type of guy. And uh, I've of my whole career, I've been
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  this way and we've we've we've done extremely well file clients being this way,
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  and so uh yeah, so I'm actually excited with new things that happen on
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  a horizon right now in the markets. But when you look at what's going
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  on here all right, Uh, the economy and uh, you know all
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  the instability, political instability in the world, all these things, Uh you
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  know, how do you and the inflation and you know everything else, isn't
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  it hard to maintain your optimism. I'll look at everything, and this is
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  I try to explain to clients. Everything is competition. So if you look
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  at companies, which which stocks are companies, they are competing against someone else,
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  uh, in their industry. And at this period of time, there
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  are companies out there that have an extreme amount of cash with great growth rates
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  and if there's any if there's any downturns like we had. Uh, you
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  know, if you just go COVID or any of these other things that have
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  happened in the past couple of years that you know too generally to bear markets
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  in the last you know, four and a half years. Uh, those
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  companies will be able to stay around, buy up the smaller companies that are
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  having issues, and just continually grow. So it I have no warriors,
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  all right? What about the commercial real estate bust and all the bad data
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  associated with that. Uh, that doesn't keep you up at night. No,
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  but you are correct. We are in a different We're in a different
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  world, especially since COVID where we have we have we deal with many larger
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  institutions and companies that you know, they've their their amount of spaces that they
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  lease have going down tremendously in different area, especially high rent zones. And
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  you've got more people working from home. So that that commercial side, I
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  mean, that's gonna be that's gonna be a shift. We'll see what the
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  market tends to do in time. As it is, as we kind of
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  go on with with UH, with that segment, it's it's just it's just
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  a segment of the market that it's times have changed and we'll see exactly what
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  ends up happening with those uh, those big lawer commercial assets and you know,
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  time will tell, all right. So tied in with that is also
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  the banking crisis. You know, we had some banks fail so far,
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  nothing's failed in the past couple of months, but these community and mid sized
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  banks have really taken it on the chin because they've been funding the law that
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  commercial real estate out there. You know, obviously you can't be a doomer,
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  and you've got to think to the future. But somebody who's maybe going
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  to retire in the next five years and you know, wants to uh to
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  hold on to uh, you know, their portfolio and not see it take
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  a big hit. What do you tell that person? Yeah, so it
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  all every client we have is is different. So it depends on what their
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  risk tolerance is. When we looking at portfolios, we usually look in terms
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  of buckets, and so if they're if they're coming in close to retirement or
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  retiring, that that first bucket is mostly very very liquid short term assets that
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  we're able to get income from. And then you get the second bucket,
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  which goes a little long term than that third bucket's the big growth portion of
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  the account. So as clients are retiring, go getting close to retirement,
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  that's that's how way we have the shift in the portfolio what they're gonna need
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  income wise, and so it's it's important to really understand where where your client
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  is at at this particular time in their in their financial lives, determine exactly
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  how much should be in each one of those i'd say those buckets, right.
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  Uh so, uh, you know bonds, Uh, you know,
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  inflation, they're not the best performing investment and inflation. Uh, what's your
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  take on the bond market. What's what's interesting with the bond market is you
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  know when we when they sort of raising rates aggressively, Uh, you know,
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  I guess it was a year and a half ago. Uh the I
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  mean, the bond just took it on the chin as much as the stock
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  market at one point. And we we're at you know what we tell clients
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  if we owned the individual bonds, you hold the bonds, you're you're getting
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  an interest rate, you have a maturity, you're gonna get you know,
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  a thousand dollars per bond or your money back essentially in those bonds if you
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  hold it to maturity. So you got to make sure that you're just you're
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  just not holding all short term bonds or long term bonds. And that's the
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  key, and that's what banks got in trouble, especially over the last year,
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  where they were holding so much long term paper and they needed more of
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  a ladder portfolio. So we make sure that that that clients are laddered.
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  And look if if interest rates, if we do go in to a slowdown
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  or recession and interest rates and the Fed starts lower in interest rates, any
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  of those interest rates sensitive investments will appreciate. And so in the past that's
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  what usually happens. Do we know if we're there not, We don't know.
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  We don't know, but you've got to make sure that we have that
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  in the in the portfolio. So yeah, as far as uh cutting rates
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  and what are you what are you expecting from the Fed in the coming year.
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  Yeah, we're probably we believe that it's it may be one at two
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  times this year, and it would be towards the end of the year.
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  It's it's I think I was listening to one of the other the other podcasts
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  and I think you kind of got it right where you talked about the FED
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  is uh not necessarily can you know, can raise rates or maybe the lower
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  rates, but they'll just talk about it and it does. It's a big
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  effect on the market right now. And that's that's generally what they're doing.
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  And it's almost like how any chance he gets, he wants to kind of
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  throw a wet blanket over anything that that's that that's out there, and then
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  and that's his that's his strategy. So he'll he'll come out, he'll make
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  statements that you know that we we're you know that we're we're not raising rates
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  anymore. But then here's you know, then again he throws the big wet
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  blanket, but things are still not where we want it to be. And
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  so he Yeah, I believe he'll probably do that here for a while.
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  Yeah, he's gonna hold off till the last possible moment, right, that's
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  it the end. And we we all know they don't get it exactly right
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  ever, so uh, they'll they'll raise too much, they'll lower too much,
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  and they'll they'll be on the they'll be on the wrong side. But
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  it is what it is. Yeah, So just one of those externalities.
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  But obviously if he starts cutting rates, it's going to be good for bonds,
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  good for housing, right, all of that stuff. You got a
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  forecast for housing. What's coming up down the pike here? Yeah, so
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  the the So, I know, the mortgage rates have come down the past
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  uh, this past month and a half, and we'll probably stay about this
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  level. I think what's what's happened, Garry, is that so many especially
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  young people who have just used to going to have three percent mortgage rate,
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  which is you know, traditionally not which you're gonna pay in that market.
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  So the market has to get used to a much higher rate a seven percent
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  probably not, but we believe. But you know, by this this time
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  next year, it should be you know, possibly in the you know,
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  the four and a half five and a half percent range and stick somewhere as
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  in there. Thanks. So huh yeah, Well remember the days of the
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  double digit mortgages, right, yes, yes, And I mean that's where
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  you had the savings and loans, and many banks got in trouble because again
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  they were on the wrong side of that yield curve while they were landed out
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  money at a much higher at a much higher rate. So I think I
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  believe that. I believe with all our dull lessons on that, including the
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  government and banking, if you try to go get a long term CD,
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  they can give you money back after most of them give you money back after
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  a year. So you'll you'll get some of those five and at five or
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  five and a half percent CDs. And they may say on paper three to
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  five years, you know, three years or four years, but in reality,
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  when those rates start coming down, it is your money back. Yeah,
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  yeah, gotcha. All right? So hey, AI stocks, what
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  you're feeling there? Is it the flavor of the week for Wall Street?
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  Or is this thing going to go on and on like the Internet has?
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  You know, it feels it feels like the It feels like the beginning of
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  the Internet. And you both you and I have some gray hair, so
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  we know what that that actually looked like. Yeah, left, yeah,
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  right exactly, So it realistically feels like it is. Uh, it's it's
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  what the Internet did to very to to a whole new industry and what it
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  did to very good companies. Uh believe they're still gonna have They're gonna have
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  companies out there that throw, you know, throw the word AI in it
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  and they're just they're not very good or with very well run companies. But
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  there are some big players out there that will do really well because of this
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  new technology and it's going to change the landscape. And this will be the
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  next uh that should be the next big thing that's that's happening in our marketplace.
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  And you and you, you know, I've been doing this for twenty
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  eight years, and you can see certain things that happen, and you see
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  the trends that happen, and you know, both you and I went through
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  that dot com bubble where sure, if you put the word dot com behind
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  you your name, then all of a sudden you're a company. We'll have
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  some of those again with this with this AI. But now where we at
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  players in there that are just very very cash rich with high growth rates that
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  can really take advantage of this. Yeah all right, so uh okay,
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  any feelings towards precious metals or other so called the safe an assets, sure,
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  and let we we do will have a uh usually just a small percentage
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  of our portfolio in some precious metals. With I guess, I guess the
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  only thing we always say to watch out with precious metals is We'll have occasionally
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  have clients that I want to hold the physical gold and they'll uh, they'll
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  be very excited about getting their gold and buying a tremendous amount of put a
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  tremendous amount of money in it to actually hold the gold. And my only
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  thought of that is always tell them is like, if if you believe that,
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  uh, you know, the world is just going to go uh in
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  a hole and we're going to have we'd have a lot of problems, like
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  you know, go go buy chickens and buy uh a sort of form land
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  and and you know, gets self sufficient that way, because walking around with
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  that gold and trying to exchange it's gonna be gonna be tough. Uh.
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  But again in our portfolio, it you know, it is a hedge,
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  and so it ends up being a piece of the portfolio when we when we're
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  looking at clients accounts, Hey, what about the cryptocurrencies? Do you have
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  any thoughts or feelings about that? It's to me, that's that's just it's
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  it's extremely interesting. I remember, geez, I mean it was probably ten
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  plus years ago. I had a young intern who kept showing me crypto and
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  I'm like, what what is this? And and I'm like, I kept
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  thinking that it was my sons were playing, you know, video games,
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  and they were trading, trading outfits or something with cryptocurrency. I tried to
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  do something. I couldn't figure out exactly what it was. But they may
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  be a place for it, especially the markets have realized that. And there's
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  uh now there's ETFs out there that that track it. So there's there's gonna
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  be a there's gonna be a place for it. Do I completely understand,
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  Carrie, I don't, But it's it's one of those that, yeah,
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  exactly, I own some and I there's lots of things I don't get,
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  so all right, right, it's one of those things where we just we
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  look at it and go, you know, but I don't truly understand how
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  we're talking to each other of a zoom right now, you know, so
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  in you know, so I don't know if it's alien technology or or what,
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  but it doesn't. We don't know how anything works anymore other than a
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  light switch. We might have an idea, but maybe if you got one
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  of those smart home light switches, you know how that works either? Right
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  now, So we're at a place where we know more and more about less
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  and less as that. Somebody once said, all right, so when we
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  have this conversation chat next year, you know, after the first of the
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  year, where are we going to be. So I believe whoever wins the
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  election, it's not really gonna matter. We've seen both of them in action
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  or in you know, or or non action with both of them. So
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  I think some some key things to possibly look at is, uh, is
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  this actual Congress who who who takes control true control of Congress? And that's
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  where a lot of things are gonna are going to happen when either party that
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  that's in the presidential office has control of of the Congress. That's that's where
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  that's where you see some things go on both sides. We really aim to
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  worry h that right, right, exactly exactly. The presidential part probably not
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  so much. And again, did the markets know what they're going to get
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  from from both of them? There's not going to be any it's not it's
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  not any surprises at this point. All right, we'll take your word for
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  that. Hey, just tell us where we find you, how we connect
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  with you on the web. Sure, sure, go to oliviergroup dot com.
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  Uh, it's Chatt Olivier and you can click on that and we have
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  a big team here and we could discuss anything financial with you. Financial planning
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  excellent. Hey, then the link will be in the show. That's this
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  interview on Financial Survival Network dot com. Make sure that when you go there
• 18:17
  you sign up for your free newsletter. If you've got a question for Chad
• 18:19
  myself, any topic, shoot me an email kl at Carrie LUTs dot com.
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  Chad, thanks for coming on. We'll talk to you again soon.
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  Appreciate it. Carry Thanks buddy, bye, Thanks for listening to Carrie Letz's
• 18:30
  Financial Survival Network, your solution to today's trying times. For the latest,
• 18:37
  go to Financial Survivalnetwork dot com. Financial Survival Network now more than ever.