This Week’s Must-Know Market News | ft. Peter Boockvar & Andy Schwartz | Rise UP!
the the the whole tariff situation uh is making volatility great again I think there’s just a major inflection point that we’re sort of cycling in right now and that is potentially the end of this AI Tech trade [Applause] welcome to rise up at wealth on it’s our weekly show to really dedicate ourselves to helping you understand what is happening in the markets and how can we work together to uncover smart investment moves as well as financial planning so we can help you grow and protect your wealth I’m Terry Coulson
I’m the co-host along with Joe Duran I’m a managing partner at rise growth Joe is the founder and chief investment officer at rise growth Partners welcome Joe well thank you I’m I’m really happy to have you back you know I had to do the co-hosting duties I’m definitely not as good as you and look you leave for a couple days and the market goes straight down so hopefully you’re being back is going to change things a little bit but it’s great to be back with you obviously it’s been a super challenging uh week uh
since our last show I can’t believe actually it happens to be a Constance I wish we could tell you that we could predict these things but we had Peter and Andy on with us obviously talking about volatility I think we had Scott on with us talking about volatility how to handle it how to think about it so as we go through you might want to check out last week’s show because we actually dedicated a whole segment our deep question was all about managing volatility which would have been quite useful for this week I guess yeah Joe
you know you guys did a great job Scott Peter and Joe I watched it over the weekend I was really excited to see it and then I could think of lots of ideas is to help you with your moderation so we’ll we’ll talk after thank you very much if you’d like but it is really great to have the gang back together we’ve got Andy Schwarz with us who is the founder of weekly Financial Group he’s a cfp he’s just been with us he’s just so much information in helping our clients and then we have Peter bvar who’s the CIO the chief investment
officer at Bly Financial Group and writes the book the book vvar report so really great to have you guys here today great and obviously Terry we we want to always have the smartest people in the world coming over to talk uh and so we’re really excited to talk about what’s been happening this week that’s right well let’s talk a little bit about the big three if you can recall we really want to talk about number one the SNP you know as of close on Thursday the S&P was down 1.59% it’s been down five out of the
last 6 days maybe now that I’m back modering we’ll start to see some uplift who knows but it’s been a really time of fits and starts Joe what are your thoughts on that hey look I think we’re seeing two fundamental things play out here I think the risk of stagflation has become a real thing uh and I don’t know that it’s going to stagflation for anyone who doesn’t know is very simple it’s the idea that your inflation is higher than anyone wants it to be and we got some pretty not bad readings but
they were worse than expected uh pce reports so inflation is worse than your target we have a Fed that once a 2% inflation rate we’re offering now around 2.7 2.9 and secondly your growth rate your GDP growth rate is less than you would like so when you have higher inflation and lower uh growth that leads to what’s called stagflation now again it needs to be really high inflation and really bad GDP like negative growth to be officially stagflation there’s all kinds of cute things BL flation in between inflation it’s something in
between but clearly the growth aspect of it inflation I think is not a surprise to people but what you see with a 10e treasury is that we’re reflecting a growth rate that is not what people were hoping for and we’re starting to hear talk from companies in advance preparing for a slower earning cycle the second big thing that I think is happening is this tariff talk is a really big thing and just overnight going from 10 to 20 uh you know and letting us know that we are in fact going to put the Tariff skin
Mexico and and Canada think about what that means for all the US manufacturers all the people who work globally and figuring out what they meant to do in a business sense because we don’t know if it’s permanent we don’t know if it’s temporary we don’t know what goods and products so it has massive investment implications for companies and they don’t like to invest in uncertainty so what they’ll do is keep their powder dry and watch and then we have one very important technical issue we’re clearly
in a riskof environment and more importantly run away from the momentum stocks it started we talked about this last week Peter but it’s clearly picked up steam uh we see more of it every day the conservative names the healthcare names the ones that you actually were recommending to people last week that they’re actually really really being harmed the S&P is being hit by the fact that all of these big mag mag sevens represent such a big amount of the S&P and the S&P is doing quite well underneath of that but unfortunately
everything’s being thrown out right now but especially these momentum stocks Peter your thoughts am I off here do you have different opinions about what what’s what’s happening in the market right now no I think you hit the the nail on the head I mean the the the whole tariff situation uh is making volatility great again and you talked about the nominal uh fall in interest rates we’ve only seen a modest fall in inflation expectations in the tips market so that is sort of uh highlighting your uh stagflationary type
situation in terms of being priced into the market I think there’s just a major inflection point that we’re sort of cycling in right now and that is potentially the end of this AI Tech trade this trade that so dominated markets since late 2022 early 2023 that sort of sucked all the oxygen out of the rest of the market not only domestically but internationally so now you’re seeing the pendulum beginning to switch to other things outside of the mag 7 other things outside of the high multiple stocks into
more value and and also internationally you look at European markets they’re well outperforming us markets also the hangsang index in Hong Kong well outperforming the US market so this is a major thing because the whole world has piled into these big cap tech stocks so it has a lot of relevance here uh to the broader Market if this does continue and then it begs the question of does it drag down the whole Market or does it just pass the Baton on to other things that can then sort to lead the market if
those stocks falter that’s right and just to highlight what you guys are saying you know Trump is now saying that he’s going to implement these tariffs on Canada as of March 4th so that’s next week already and then he’s going to increase CH tariffs on China by 10% and a potential 25% tariff on the EU and so there’s a lot going on in a tariff on copper so you know data release this is affecting consumer confidence it’s been the biggest drop in the last four years since August of 2021 and then we’ve got
tax cuts Trump’s tax cut how will they be extended you know what’s going on there and then on top of that Andy I really want your input on this one Charles Schwab recently on a Traders poll said that most Traders think it is still a bull market even though two-thirds of them think that the market is overvalued so what are you watching Andy and what are you telling your clients yeah I mean so I don’t think all assets are necessarily overvalued um obviously 50% of the return of the S&P has been the mag 7 over a number of
years and those assets probably are overvalued we’re starting to finally see I mean our International value positions up 9% for the year where the S&P is up what maybe one and a half actually after today you know probably somewhere closer to 1% nasdaq’s negative or flat um so we are starting to see the the value uh side our value assets we tend to have a little bit of the value bias I looked at a bunch of accounts today we’re up four and a halfish percent so far Year date on the value part of the S&P I think Joe
was saying before that if you take the mag 7 out um even on the equal weight although it isn’t up as much as Joe was saying if you if you took them out all together but even an equal weight including them um you know it’s positive so everything isn’t super expensive but if you’re just in an S&P 500 and it is market cap weighted and if these stocks continue to come down and clearly you know we are in a a riskof trade environment I know we were talking before about you know Bitcoin and lots of people think lots of different things
about Bitcoin and what it is and what it is and what it isn’t I’m not sure 100% but one thing I know it is it is a risk on or a riskof you know kind of a trade and we are in a risk-off environment and we’re seeing you know that asset class uh get hurt again at the end of the day we are in a crazy uncertain environment and nobody likes uner C the market doesn’t like uncertainty so one thing we advise clients to do is make sure that you know where your liquidity is coming from at least in the near term because
in an uncertain environment we do not want to be in position we’re selling Equity that they’re falling needing them to to to handle liquidity needs so that’s really important maybe more now than it has been for the last couple years to make sure we know where our liquidity is coming from for the next you know 12 to 24 months yeah and Andy if if our viewers aren’t sure that would be a great question to ask an advisor like let’s talk about M liquidity during these times of volatility so Peter you
know you also sent over a really great article from The Wall Street Journal just this week top 10% of the wealthiest Americans are responsible for 50% of consumer spending what’s going on with that well something that we’ve been highlighting here for for for weeks now is the very bifurcated consumer where the lower to Middle income consumer is still struggling with the sharp cumulative rise in inflation worth of 20% while the upper income consumer has handled that much better because it’s their their costs are are much less
relative to their income and also they’re benefiting from record high stock prices and high home prices so the article really talked about that and that the economy is sort of being held on its shoulders by that upper income consumer with 10 the top 10% of income earners making up about half of all consumer spending that then ties into the stock market because the stock market in a circular way the direction of the stock market from here can then flow through to that upper income spend and then determine where the economy
goes in the rest of the year because the economy outside of upper income spending is only benefiting elsewhere in in terms of uh benefits in AI spend and also government spending and on the government spending side now there’s of course a lot of scrutiny on that so if you get a pullback in government spending you can see the fragility of the economy while headline GDP looks at around 22 and a half% underneath the hood it’s a much different picture that’s right and now let’s go on to our big topic number two and Andy you
already mentioned it Bitcoin right a lot of volatility in Bitcoin Bitcoin is not having a good month at all as of Thursday the value was 84 298 and it’s down about 16% um this month so so it’s been a really rough ride Joe what are your thoughts on bitcoin well you know I have to say I I find it really amusing that for for years what we heard is Bitcoin is a store of value and as an alternative to gold and we talked about this last week uh gold has actually done remarkably while it was hitting new
highs where Bitcoin is acting very close correlation to Nvidia and the max 7 if you look at Tesla and Bitcoin you’ll see that they behave remarkably similar even though there’s there should be no link at all um and so what we’re learning now is that it’s a risk asset and when risk appetite goes out it goes down and so it is not a way to protect yourself the way gold can be again as we said yesterday when volatility goes high enough or the market Falls enough then the correlation of all asset classes becomes closer and
so again I think we’re here for I think we’re going through a healthy correction but Bitcoin is showing you it is not a place to hide when volatility is high I also would say there’s some fundamental issues as I mentioned I just been to El Salvador a few weeks ago they had stopped using Bitcoin as their official tender because it could get hacked it isn’t secure and Lord knows what we just learned by the North Koreans stilling one and A5 billion dollars uh overnight redirected most of it untraceable and what is that going to
lead the us to do of course of course increase regulation and so we’ll end up I think we’re going to talk a little bit about us stable coin as an alternative I don’t think I think the technology that powers Bitcoin is really important the blockchain I am not sure that Bitcoin becomes the asset of choice because of situations like this Rogue Nations can use it they then traffic it they they launder it and I think you’ll find that the big governments of the world who want to tax everything will say you know
we can’t secure have something that is so untraceable un un like that can be used for nefarious means by Bad actors and we have a great example of it so I think it wasn’t the one and a half billion are the impli it’s more about the long-term implications but as a separate asset class not only does it have for some fundamental issues and by the way I’m a believer that Bitcoin is should be a for some people something they invest in but it should be a speculative investment it is not a protective asset class
yeah I like that we’re really learning a lot more about Bitcoin and how it performs in different environments so Andy what are some of the things that you tell your clients about how much Bitcoin they should have in their portfolio yeah I mean and look Peter has been we’ve been talking about this together for a couple years now you know Bitcoin two three years ago even referred to bitcoin is digital gold and we told clients Bitcoin is not digital gold Bitcoin can be a lot of things but it is not digital gold it is not
necessarily a store of value as Joe just mentioned it is much more of a risk on or a riskof trade it trades like the NASDAQ you know it trades like the most speculative you know stocks I mean to us if you think of it in the long term a 1% maybe 2% position as a speculative position you know we’re fine with because who knows I mean you know um but it’s not a core position for a client’s portfolio and you’ve got to think of this long term because maybe this thing does manifest into something um and
maybe with blockchain technology and and as as it matures and becomes more steady maybe it does look more like a currency I mean I know that there’s some really smart people is it Thomas Lee talks about he thinks it’ll be at a million dollars and you know within five years I mean he’s smarter than me I don’t know but we would just say that we would be very cautious it’s not liquid it’s not digital gold if you want gold buy gold if you don’t want gold don’t buy gold but don’t buy Bitcoin thinking it’s
digital goal um so yeah that’s kind of our take on this yeah that’s right and Meanwhile we’re starting to see some fast followers the CEO of Robin Hood Vlad Tini said that this week he’s confident that we could see a creation of a US dollar back stable coin by Congress by the end of the year what’s the difference and would this be a better investment than crypto currency Peter well well stable coins are are I mean we have tether we have others you know a stable coin is essentially a cryptocurrency that’s backed by uh
treasuries or or other things that maintain that sort of$ one dollar that that someone would buy so if I buy that stable coin for a dollar the stable coin will be always worth a dollar and then I can use that stable coin to buy other things uh can the US government create one maybe uh I think that what will not be created by the US government is a is a central bank digital currency for privacy reasons the US populace does not want the government to be tracking everything that we do so I think mostly
the stable coins that are going to pop up are not going to be government blessed it’ll be more private sector Blessed Like tether and like others but they are fundamentally different Terry because they’re backed by actual dollars so this isn’t like Bitcoin where well there’s limited Supply and that’s even though you they really by the way is Unlimited Supply of Bitcoin because you can just keep taking a finite amount and cutting it into smaller pieces unlimited and so again it’s like a stock split
stock split stock split uh with the stable Co you’re actually buying you you’re basically using the dollar to consume online uh so it has all the benefits of just not not having transaction costs usually associated with it what US government could do though is is rely on stable coins to finance the government because these St coins are buying us treasuries yeah well you know I I think our viewers are very interested in this just the term stable coin right now would seem you know somewhat attractive
to a lot of investors trying to understand how to maneuver through this Marketplace but let’s go to our our big topic number three and and this is another president Trump you know eye-catching proposal he’s telling us about the eb5 Visa program which is a green card for foreigners um to come into card a gold card I love it he it the gold card it’s a green card that’s colored gold so um you know can be purchased for to $5 million and really gives the pathway to citizenship so there’s been a lot of talk about this
week Peter what are your thoughts on this I mean I think it’s think it’s a great idea to raise money uh and to encourage uh some foreigners to come over to the US uh these people will be vetted so it’s not just going to be anybody that writes a $5 million check that can do this uh but it is a clever idea uh other countries have had similar programs where if you invest a certain amount of money you can get a passport at think the country Portugal uh is an example I know Italy has implemented the
program so I guess we would just be creating uh or form of it at a higher price point than some ask Peter a stupid question I uh having earned my way the painful way here coming to college getting the temporary Green Card finding my wife getting married uh having my three kids all of that I believe that the other countries it’s just a threshold of investment into the country in order to get the card when I read this it looks like you pay $5 million which is a I don’t know of a country that does it this way is it like
the eb5 where you have to invest in the in the country or is it really the way I think it’s been presented you just give $5 million to the government and you get your green card yeah do you know I I I I don’t think this idea was fully vetted out I don’t think they themselves have all the det tells uh and and whether there’s follow through I guess we’ll have to see so I’m not sure Joe ex I think though Joe I think you’re probably right but I think the Assumption they’re making is that people that have the
means to pay $5 million to get in yeah they’re they’re very wealthy well they’re going to attract entrepreneurs and they’re gonna build businesses and look it’s like a lot of things these guys are talking about um you know they they it’s an interesting concept I don’t know if it’s a terrible idea the question is going to be the execution yeah how do the execute you know do they really bet um are they the right people but at the end of the day um if you’re going to have people coming into the country I think the one problem is going
to be the the question of fairness that you know that the average person um you know doesn’t have $5 million is that fair and what I would say is that you know not fair in a if there is such a word as fair if the world were a fair place but you know they’re talking about raising a trillion dollars which seems like a a pretty ridiculous number to make with the number of people they think would do do this but if they can get you know if they can bet people properly and if they can raise a lot of capital and get you know wealthy
entrepreneurs into the country it might not be a terrible idea can I ask a silly question I mean I I assume if you’re gonna spend $5 million for just the right to come and work here you must have 50 to100 million right like I I assume so if you have $50 million is there any question that you can come live in the US I mean surely you can go buy a house get a like I don’t know but I I know I was making minimum wage but yeah and and I gotta believe that there aren’t many people with a hundred million do they can’t live wherever they
choose right but isn’t it but is an interesting idea though that they would come so then you’re questioning then the idea are there really that many people that would pay it again I just don’t know I mean again I’m just wondering what kind of person yeah I would I would have done whatever I could but I again I didn’t have that kind of money so and you’d have the best legal representation people with contacts and but guess that seems like a high threshold that’s all it’s one thing again if it’s an
investment in the country it seems to me an easy decision well I invest five million and that I get yeah I just again if it’s just a check that seems unusual yeah yeah Jo I think since you came to this country and you know really flourished in this country you might want to give them some advice on how to handle the execution I wouldn’t dare touch anything in the government I’m I’m frankly too Direct an honest problem you don’t I don’t think you didn’t want them to know that you exist you want to stay
away from yeah well Andy is there any upside in terms of investment opportunity in this situation yeah I mean look as as volatility always creates opportunity you know so and again as I said before there are always assets that are reasonably priced or even cheaper um you know we’ve been talking for a while now that we were if people asked us a year ago what are we afraid of what keeps you up at night we would say and I give Peter more credit because he is my he’s my Guru but we were worried about stock inflation what
we were worried about was the idea that inflation isn’t going to dissipate as everybody hoped as much as everybody hoped that it would be stickier and higher and that the growth prospects going forward might not be as good as everybody was hoping for because it was so concentrated and if that happens we like Commodities you know um you know oil prices are relatively cheap historically and I know that you know they sold up a little bit although maybe up a little bit today but um you know so we think energy uh commodities we like
you know um again International positions we’re not necessarily interested in indexing because we don’t want to own all of it but there are some really inexpensive I mean the most hated assets mean Asia you know hasn’t done anything for the last couple of years you know there’s you know there’s some funds that are trading at eight nine times earnings where you know obviously we’re trading even now at much much higher you know uh earnings per share ratio so yeah there are some assets out there that do not look terribly
expensive you know and I think a really well-managed Healthcare portfolio I mean we’re having having a really good year we’re up 7 half% on our Healthcare portfolio year to dat in the first six weeks so we’re definitely finding some some areas opportunity but people people need to be really careful because what’s happened in the last 10 years and what’s made everybody so much money very likely will not be repeated the next 10 years would you argue that’s right so I hear you saying have a plan understand what
you’re investing in and think about the long term so makes sense but now let’s move on to a little bit more of our in-depth topic for the day um and then we’ll get into our big three questions but our our topic today has to do with the certified financial planner obviously near and dear to my heart I’m on the cfp board Andy’s also a cfp but it came out and we should say the chairperson elect yes so you’re the queen of cfps worldwide which we’re honored to share the stage with you well not exactly but uh I am I am the chairel
and it’s really a great organization I’m very proud to leave that organiz ation but it really came out with a really interesting study regarding how who takes the lead in a in a partnership or a spousal situation on investment decisions in a household um so guys you know I’d love to hear from you on this one you know would you be surprised to hear based on the cfp board study that um in more than 2third of households like 2ir it’s women who are actually making those investment and financial planning decisions and and in 100% of
households the women get to either scold them out for making a mistake or correct that mistake so well I mean that is I I am I am a little surprised by the ter but what I would say is this that what I’ve observed over the last 40 years in my practice that women are much much more practical and much much um I don’t even want to say conservative but they are they’re just more thoughtful about investment process where men tend to be much more camers you know they they they talk to their friends somebody’s making lots of money
somewhere and they they just you know I talk to to to men and they’ll they’ll they’ll make an investment I’ll ask the details of what they’re doing and you know they they don’t even really necessarily know where women are much more thoughtful I think about their investment process so that I I totally agree Andy and again this is a fraud subject because they’re all kinds of men they’re all kinds of women so we are generalizing that but I will say an observation I have seen men lie about performance like they lie
about other aspects of their life right like I know which direction I’m going in and women in general are more comfortable asking experts and using that to inform their decisions it’s like asking for directions like I never want to stop and ask anyone and my wife will after the third Wrong Turn say when Joe are you going to stop and ask someone so it’s a parable again this Men Are from Mars Women Are from Venus I again we overlap a lot but this is a really important thing is what do you use using
your slow brain or your fast brain to make investment decisions and I think about it in that Daniel kman who’s a noble lower Economist who I knew I was a professor at at Berkeley for a while and invented something called behavioral economics that men tend to make a lot of investment decisions with their fast brain Instinct and that is fear and greed yeah and women tend to make financial decisions in with their slow brain in in other words their long-term conscious choices and honestly the difference between success and failure
as an investor is whether you’re using fast brain or slow brain do you use your Twitch instinct or you actually thoughtfully building a plan and so again whether you’re male or female if you’re making a decision instinctually rather than thoughtfully you’re probably going to make their own choice yeah I I agree Joe and you know what the study found and what we’ve talked a lot about on the show is that women are very interested in long-term retirement planning right so they want to because women are going to live longer than men
you know the facts are the facts so they need to have a longer retirement plan they also are the ones that are working on the emergency savings account so they really believe in that concept of liquidity that we’ve talked about at least six months and then the last category is caring for others right be it Elder Care caring for their families making sure they’ve got a plan to not not only make sure they’re okay but their families are okay and those would you know follow along and women really do want to work with a fiduciary they
have expressed that and a fiduciary mean a cfp or a fiduciary meaning we’re doing it for the very best interest of the client not just what’s suitable but what’s in the very best interest and so all of those do tick and tie to many of the things that we’ve talked about now they don’t necessarily need a male fiduciary or a female fiduciary but they want a fiduciary and that’s what’s important but another really interesting fact that I’d love to get your guys input is that newly married couples are keeping their
financial accounts separate believing that combining them could lead to more meritable conflict well I’ve been married for 31 years and you know I do see some truth in certainly in some of this we had much more fights when we were younger than than we do now but you know what are your thoughts on combining accounts or keeping them separate you know Andy I’d love to hear your thoughts well I mean so I was married when I was 22 years old I never had anything but joint accounts but I think though that
younger people today are less optimistic about the outcomes of marriages it might be part of that um and look there could be some practical reality to it I me I don’t know what are the statistics 50% you know marriages fail that’s right so it probably depends a little bit on the circumstances you come from if you come from a family where Mom and Dad are married long term maybe you’re a little bit more comfortable sharing um but no but I do notice with my younger clients a lot of these clients have separate
accounts which you know that’s fine I don’t have a you know I don’t judge them for it but I my my observation always is that maybe maybe they know something that I don’t know and maybe they just think it’ll be easier to exit if they keep being separate but it is does seem to be the trend though it does seem to be the trend you know it’s so interesting Andy because I just read this and then I read another article about newly married couples and they have they have separate Financial accounts but they track each other on
GPS so they know exactly when they’re at the grocer right know where you know when and where they’re sleeping if they’re traveling to another sounds like trust issues Terry yeah so maybe next session we’ll have a special on um you know marriages who knows yeah but um but thank you guys I really do appreciate your input on that but now let’s go to our viewers question so as you know we have questions from our viewers so our very first one is from Donna from San Antonio Texas who is asking retirement
is a priority for her and her husband but they don’t want it at the cost of living life and she’s asking can she do both can she enjoy life and can she actually have a really lucrative or at least an appropriate retirement plan um Andy you want to start with that so you know what we used to what we’ve been talking to clients about for years is set aside the amount of money set aside a certain amount of money to save and then spend the rest so if you can decide up front what the appropriate amount of
money to save to accomplish your long-term retirement goal then you can freely and happily spend everything else and so to me I think that um the qu the answer it’s kind of depends on how much money they make you can’t spend all the money be as happy as you want do everything you want to do and be able to save for time unless you make a lot of money but what I will say though is is sort of financially freeing and emotionally freeing is just figure out what that number is is it 10% of your income is it 5% of your income to get
the outcome you want and then spend the rest enjoy it you know have no stress don’t worry about whether it’s it’s something that’s silly and frivolous whether it’s something that’s necessary and I think that that that’s how I would approach that you know Terry I wrote uh I wrote a book on this specific subject called the money code and we did a lot of work on this and there a couple of things everyone should know are true for absolutely every human being number one is you will never be able to have
everything that you want so there will be tradeoffs like just know that no matter how wealthy you are there’s always another boat there’s always another house or there’s always the neighbors like there will never be because in America especially how much is the perfect amount a little bit more than I got that’s true of almost everything that is common of everybody in this country so I would suggest first of all know that there will be tradeoffs this next big idea that was really true is how you make those tradeoffs
determine your entirety of your financial life you know Albert kamu had the expression life is the sum of your choice if you don’t have a really deliberate way of making those tradeoffs because having an advisor their number one value is helping you make good choices of everything else it’s not outperforming the S&P it’s not getting better after tax returns believe it or not if you have the right advisor the right fiduciary their primary job is to help you make better Financial choices and those are usually Life Choices because
money is tied to everything so understanding that how I make choices am I deliberate do I think about the long-term implications whether I’m saving enough or spending enough and then the third is that you have a deliberate action plan you have discipline once you’ve made that decision that you actually stick to it and again I hear all this stuff stop spending on Starbucks and you’ll get rich that’s just garbage the truth is life is short you might get cancer tomorrow none of it will matter so there
is a a function and what you’ll see is a lot of people have their biases are I do this all for security they spend all their time trying to protect their money and no time enjoying it and then they have a heart attack and the kids have no problem spending it all which would be a great topic of conversation for uh Andy and and the team but honestly yes it matters yes you should do both and yes you should depending on your income depending on your goals because you have other choices than how much you spend or save you also have how
long you work you also have how bigger safety n you want to leave behind and all of these things interact and that’s what a great financial plan does by the way that’s why you work with people like Andy and people great advisers who will actually tell you these are the trade-offs you can make yeah you talk about those trade-off show and there’s always trade-offs but you always want a little more a little more a little more but there’s no correlation to that little more Beyond you know maybe a $100,000 to happiness right so you want
the money but you also need some peace and happiness and I know final planner can help people make that that balanced decision so let’s go on to our our second question which is Judy from Miami and she’s saying that well she and her partner have similar financial goals they have different thoughts on how to achieve them and she’s wondering how can they reach their goals without constantly arguing Andy I feel like we’re doing a little marriage counseling here but help us out well I guess the first thing I would if I were helping
them is try to understand what the differences are you know um because that’s the place to start um but I have no idea Terry if I don’t know what the context is yeah yeah I just share Terry this uh we did some great behavioral economics money does one of three things and we as human beings have a bias toward if you think of it like three buckets all that money can do no matter what it is is help you do things that bring you happiness help to protect you and help you to take care of the things you care about so if you think about
those three areas that that’s every human thinks about we all have a bias to towards filling one of those buckets so in a moment of stress somebody in that relationship and I’ll give you my example of me and my wife my bias is toward protecting because I grew up in Zab with nothing my wife’s bias is to enjoy life and take care of everyone around her so she fills the other two buckets we’ve been married for 32 years and every fight’s the same fight she wants to host every party she wants to pay for everyone and I’ll be like hold
on a minute I’m not buying myself a new pair of shoes because I’m like want to be prudent and so that conflict understanding which of your biases you’re leaning on and a good good advisor again will understand we need to fill all three buckets we all want to do the things that make us happy we all want to protect ourselves from B our camps and we all want to take care of the people we love and the causes we love so that delicate balance almost certainly I think that should be able to answer the question by knowing which
bias am I leaning to and which bias does my husband or or spouse assuming it’s a husband uh lean to as well so you can end up finding the right mix and I think and I think Terry I was in my conversation just a little while ago with a couple and they were sort of she likes to travel and spend money and he seems more conservative I think having both though is a good thing you know because you know it’s not it’s not a good thing to be too much of a saver and to be too too uh security minded but it’s not a good thing to be a spend thft
either so what you try to do is sort of recognize the guys it’s good to you guys aren’t necessar on the same exact page what we have to figure out is a good combination or a good mix of both so I would say that it’s probably fine that they don’t 100% a grade they just have to create a balance and so so that’s not a bad thing well I think that’s what’s great about what Joe’s saying too is these behavioral economics or behavioral Finance it’s kind of a big word but all it really is is just you know what’s
your relationship with money and how do you make decisions and often times the two partners come from different views right a lot of our money habits are formed when we’re children and so it’s bringing those together in a conversation with your adviser so you can get a path forward and Achieve both sets of goals so we have one more question and this is Tara in Seattle and she’s saying um she’s about to get married so her Finance wants her fiance not Finance her fiance wants her to merge her bank account but he’s a
spender so you’ve been in these scenarios before well she’s a saver and she’s worried about doing it what would you advise her to do Andy well I would say look if she’s concerned about that she should probably stick to her guns because if she doesn’t it’s probably just going to create unnecessary conflict in an early marriage um so that would if that were my daughter but first I would say congratulations on getting married and good luck um but yeah but I would say if one of my girls uh approach
me with that I would say look if you if that’s uh something that you’re concerned about you know you communication is fine but I would say stick to your guns and that’ll be one less thing that will create conflict hopefully in their early marriage and then maybe maybe she’s misjudged it and um and if he proves to be a responsible Financial partner then maybe they can merge accounts earlier what you can’t do is merge accounts get the money spent and get the money back that I know you can’t do and Terry honestly the problem
is in California even if your accounts are separate if you’re married you’re liable anyway so there’s really no benefit to having she’s worried about spending the money Jo well she’ll SP he can get credit cards he can use the credit cards and should be liable for those credit cards so the reality is I would take the time to just say how are we gonna think about our budget like just have a grownup we’re married now how are we gonna talk about financial choices Beyond let’s say $100 or whatever the right number is so by the
way I will say there was a report I think it was in the the Journal of consumer research that actually said that people who have joint accounts actually are happier and actually do better retirement planning not that she should join accounts with him but she should at least be aware the difference of just because he can’t access the account doesn’t mean he can’t spend money and that she wouldn’t be responsible for it anyway I bet they stay married longer too Joe yeah yeah you know um Joe you brought up a really
good comment though in the state of California which is a community property State you know everything is ultimately shared as a result of marriage or a seven-year partnership or Beyond so our viewers as they’re making these decisions know what state you’re in and know what your actual laws are and if you talk to an adviser they can help you understand understand where the community property states are and what that means for you not just in the short term but for the long term all right let’s move on to our big three stories
for next week and every week seems to be bringing in more and more stories but we’re really looking this week about the PCA that comes out tomorrow which is a top indicator the FED uses to measure inflation Peter what do you think the prediction is and how do you think it’s going to impact markets well the pce usually comes out a few weeks after CPI and PPI and because of that it rarely deviates much from expectations but because the FED has said to us that they prefer that gauge rather than CPI of
course the Market’s going to focus on it uh so I don’t expect any real difference relative to expectations uh more yields have already come down I still think the FED is going to be in a sort of a a difficult box here with uh juggling all the different macro factors that are taking place particularly tariffs uh I think more relevant for the market is going to be next week’s payroll number because if there’s something that’s going to get the FED to cut interest rates again it’s going to be a rise in the unemployment
rate less so than you know a 10th lower on on the inflation number so that’s the key and earning season’s over so the focus is going to be on the data next week and whether these tariffs on March 4th are going to get implemented or not yeah the jobs report is due next Friday Friday so we’ll definitely be talking about that but if we continue to see this volatility and clients are really getting nervous about their portfolios Andy what do you recommend well again make sure you line up your liquidity we
can’t time the market um and even look do we think there’s a 10% correction out there I mean we’ve already seen some of that 10% correction in certain Spa in certain places in certain individual stocks for sure more than that but I would say that there’s clearly a broader 10% or more correction out there but that’s normal anyway and so again I don’t think people should um I just don’t think people should be overly reactionary or try to time this Market I think they’re they should be in the history of the market a 5 to 10% decline
every 18 to 24 months normal and a 15% decline every two and a half to three years we haven’t had that for a very long time just just be ready for it exct and make sure that you allocated right you’re rebalanced so that you’re going to be fine writing it out and if you have doubts have a great advis just helps to Hold Your Hand yeah and I think Terry the one thing to think about if someone just got their bonus or somebody just you know walked you know came into a lot of liquidity a lot of cash just be
thoughtful about how you’re investing that today you know you might dollar cost average you know put some in now you know weigh yourself in set some targets you know that’s all but but the idea of coming out of the market um I mean look there could be tax implications that come out the the thing too is you know coming out of the market today you might look really smart for 30 days 60 days but you might look really bu is she here from now and so because there is no signal to know when to come back so yeah we do not want to try to
tie the market um I think you know patience but but you can be thoughtful about how you allocate fresh cash I think that might be something for people think about yeah I think you’re right if you do have some liquidity you want to do it maybe in small doses and see what happens versus everything um you guys another really just interesting story coming out next week as you know a lot of activists are out there talking about the Dei changes and the companies who have now dropped the eii or taken it out
of their annual reports and you know some of these stores like Amazon Target Walmart Nestle they’re reporting and you know they’re they’re they’re moving against uh Dei um some activists are saying okay we’re not going to purchase from you for a day and we’re going to watch what happened to really show that Consumer Power Peter is that a good strategy or what are you thinking there is always there’ll always be some issue that somebody wants to protest against and this is obviously a high-profile one
I think companies want to hire the best people that they can find they want to have the best business that they can run and I think that’s going to be their focus and whatever color they are whatever gender they are companies are now focusing on finding the best people to carry out a particular job and we should just highlight it is now illegal to use quotas preferential that is why it’s given cover to a lot of companies that maybe didn’t want to do it anyway perhaps but regardless as a former partner at Goldman who was there when we
implemented a lot of these strategies it’s removed that and it’s made it really a merit based because you have to legally make it Merit based and so again it’s not leaving any choice it’s not like these these boycotts or whatever they’re going to do can be implemented because it’s actually now not legal to have any kind of vetting for race or any other uh filter that’s right well I’m looking forward to seeing these big we had a long show today Terry I know I know it must be me I don’t know if anyone’s
still watching but hopefully they are the power of Gab back but I found the conversation uh really interesting and I’m looking forward to hearing you guys’ view next week but I want to thank all of our viewers for joining us again we want your questions we want your input we want your feedback what’s working what’s not but most importantly we want you to achieve your financial goal goals and we believe advisers out there like at ble Financial Group Andy and Peter and so on they can really help you think
through some of these so if you’re interested go to wethan backspace free we’ll offer you a free portfolio review so we can get some of these questions answered and make sure you’re feeling peace of mind for the rest of this year and Beyond so I want to thank Peter Andy Joe thank you so much for thank you Terry thank you guys great great to be be well
