0:06 spk_0
Welcome to Trader Talk. I’m Kenny Pulcari, and today we’re having another very interesting conversation. On the panel is my daughter, Amanda Pulcari, representing the millennials. Then there’s Barbara Duran, chief, uh, she’s actually the chief executive officer of BDA Capital Management, and then on the end is Josh Schaeffer, who is the editor of the Barron’s Investment.Circle. Very, very interesting, uh, concept. We’re gonna talk a little bit about that considering, uh, Baron’s always, you know, never really reached out to that age group, but now they’ve got Josh, so we’ll talk about it. In any event, uh, Barbara, let’s start with you because coming into this year, we kind of started where markets were fully valued, right? Not overvalued, not undervalued, but fairly valued.Uh, and, and I don’t know about you, but kind of what’s happened since wasn’t in my playbook in January.
0:54 spk_1
I don’t think it was in anybody’s playbook, you know, when we came into the year, people were, you know, skeptical, but, but fairly confident because we would go into the 4th year of a bull market, right? But what you’ve seen is the progression of earnings that were double digit were getting better quarter by quarter. And of course, company guidance in the last quarterly, um, earnings reports were.Positive. So it looked like we were going to see not only double digit earnings growth, but that margins would continue to improve. So because the tariff, remember last year with all the tariff uncertainty, but even there, you still would see some inflationary effects, but it was manageable and would probably be one time. So, and of course then we had fiscal stimulus, we had monetary stimulus, all the tax refunds coming in, deregulation of the banks. It all looked like a fairly positive.Set up, even though it is unusual to have 4 years of a bull market. And of course, you know, the Iranian situation has blown that all apart. I mean, the bull market thesis at the moment is still intact because I think there’s still, and maybe we’re all being complacent, but the feeling is that, you know, the president, you know, will get out. I don’t think maybe they thought this was going to be a Venezuela in and out, in and out, yeah, but, you know, we do know.They’re very worried about the midterms, special elections. They’ve been losing them all, and affordability is the issue. And if oil prices continue to stay high, we know how that feeds through the system, particularly in logistics and energy is part of everything we do in this economy. If it stays elevated, it could be a problem, and you’re not seeing earnings cuts yet, but it could happen
2:18 spk_0
interesting because earnings season starts just in a couple of weeks. And so if you’re going to start to see cuts.You would have, we would have already started to see them, and we’re not seeing them. So to me, that suggests that, you know, analysts, uh, are still confident in kind of what the future looks like.
2:33 spk_1
Yeah, I think that that’s what one would think, but we also know they don’t have enough information like we don’t. You know, if it ends pretty quickly, you know, there’s still real oil prices come right back down. They certainly would come down a lot, but you would see a lagged impact, then the market would shrug off and say, OK, that’s gonna be one time, it’s manageable. And what do the companies do? We know that a lot of companies are already.Look at diversifying their supply routes. You know, they are already factoring in higher input costs, but right now it looks like it will be temporary. We don’t know though, right? But Amanda,
3:02 spk_0
so, so, so tell us what’s on top of mind for you? What are you concerned about either with the economy, with, with Iran, with the midterm elections? Like where, where do you sit in all that?
3:11 spk_2
I mean, I think ultimately, I’m really just trying to figure out how to, where are the opportunities, where should I be maybe doubling down or where should I be diversifying my portfolio, given all of this, um, does it change what we talked about at the beginning of the year? Do I need to make, are there, are there just more opportunities that I haven’t, didn’t, didn’t think of it, maybe at the end of last year that now given everything that’s happening and given my time horizon, um, are there things I should be capitalizingon?
3:39 spk_1
Yeah, well, I think that seems very smart because it’s been a buy on weakness for the last few years. And of course, I think what’s happening now, you’re probably seeing a lot of De La Regina margin.And the interesting thing and maybe concerning is that last week for the first time you saw 2 days of net selling, and that was retail, you know, so I think that this buy on weakness has been very rocky and so that’s what I, yeah,
4:01 spk_0
so let me ask you a question. Do you think that those 2 days of net selling is people now starting to throw in the towel and get nervous, or do you think that it’s end of quarter and it’s tax season because tax season April 15th is only 3 weeks away. So there’s typically pressure on the market.Market at this time of the year to begin with. And I think once April 1st comes and we get through the marking period at the end of the 1st quarter, I think a lot of that pressure goesaway.
4:23 spk_1
Kenny, it’s, I think that’s a really good point because if you look at the volume even Thursday, which was a massive down day, it was pretty thin. So it’s not that there’s this wholesale puking out of positions. It’s really more on hold. OK, where do we go from here? And, and we want to buy, we want to buy. Like even Nvidia, you saw us up 30, 70, was the most actively trading, I should say.37 days in a row. So people are eager to do something, but isn’t clear, right? Like Amandajust said,
4:49 spk_0
right? So Josh, talk to us about now you’re at the investor circle. What’s happening there? What are you seeing? What, what’s the information you’re gathering from, you know, people that are subscribing?
4:58 spk_3
Yeah, so, so we at, at the investor circle, we have a team of former equity analysts that are sort of picking stocks for us. We also have an in-house technician who in times like this is very interesting to talk to, right? Our guy Doug.Bush has certain levels that he’s looking at and that type of thing. But I think what we’ve sort of been gathering is, OK, we’re talking about all these risks, right? There’s a chance maybe the Fed doesn’t cut it all this year. How do we get into areas of the market that aren’t as interest rate sensitive, right? Where are there opportunities like that? Where are there opportunities within software? If you look at just Barns’s stock picks over the last month, we came out and said we’d be buyers of Octa here. We’d be buyers of Microsoft at these levels. I mean, our cover story a couple of weeks.weeks ago was Microsoft simply honestly off a basis of its valuation is at its lowest compared to the S&P 510 years, right? And do you think Microsoft is really going away in this software itself again, a long-term investing perspective, right? Not a trade, but I don’t think Microsoft is going away in the next 5
5:53 spk_0
to 10
5:54 spk_3
years.
5:54 spk_0
It’s down 36% off its high. It’s down 20% year to date, but 36% off its high, and I agree with you. I think it’s a screaming.I think it’s a
6:04 spk_3
and what we’re trying to tell subscribers though with that is you do have a lot of headline risk right now. So we’re saying get into Microsoft. It might be choppy for a couple of weeks, really even a couple of months at this point, right? We’re still in a headline-driven market. We’re watching oil every day. So it’s not like this is instantly going to work right now. But over the long run, we think there’s opportunities in some of those things. And
6:24 spk_0
so the other thing I always tell clients, and especially, you know, maybe younger people that you’re advising is that.You’re not gonna, you’re not gonna take all your money today, all the money you have allocated and say, I’m gonna buy it all today in Microsoft. Absolutely not. You’re gonna dollar cost average. You’re gonna take advantage of the swings in the market. And even if, if it swings higher, next month, you want to put a little bit more to work, that’s OK. You’re just gonna use the same dollar amount. You’re gonna buy a little bit less at the higher prices, but you’re gonna buy more if it backs off. And, and
6:51 spk_2
Microsoft feels pretty safe. Like, where, where, where can we take a little more risk, I think is the question that.I don’t know, Josh. I don’t wanna speak for you, but I, I’m definitely asking.
6:59 spk_1
Yeah, no, I think because what the view you’re talking about is a longer term view, you know, and saying, so if it goes down, I’m always the camp. I’d rather be a little early. I don’t care if it goes down a little bit, but I want to be there for when it continues its ascent.
7:10 spk_0
I agree, which is why I think now is a perfect opportunity to start to look at some of these names that have really gotten beaten up. And, you know, to Amanda’s point, it’s great names like Microsoft, they’re safe, but you know, she’s got more time, right? You.These guys are much younger than, than I am, right? I’ll speak for myself. You’re much younger than I am and so you’ve got time on your side. And, you know, it’s the usual, it’s time in the market, not timing the market, trying to pick tops and bottoms. But I think you have to be, especially even if a man of your age, you still have to be selective on building a strong enough portfolio, uh, that’s going to weather the storm. And then around the fridges, you can take a little bit more risk if you want, because you have time to do that.Yeah, I may not,
7:51 spk_3
right? I, I think on the riskier side, names that we’ve been talking about, um, Sterling Infrastructure was one, so they’re sort of at the epicenter of building out the AI
8:00 spk_0
buildout Sterling. So that’s picks and shovels, yeah,
8:02 spk_3
right, exactly. And so that’s not necessarily just a this year story, that’s the next couple of years story, and that’s a bet on the buildout of AI on the buildout, correct. And so that’s sort of on the, a little bit of the riskier end, I mean.We did pick Oracle too, which at this point is down over 60% from its 52 week high.
8:18 spk_0
Is that when you picked it? Did you pick it up 60%?
8:20 spk_3
No,they picked it. We picked Oracle a little over a month ago now at this point because it started to act well off the bottom a little bit, and we were looking for a little bit of, we don’t like picking things that have zero price momentum with them, right? So you want to start to see the stock act a little well. And so Oracle had started to show.Signs of that, but I would definitely argue that that’s still pretty risk-on at this point because there’s a lot of questions surrounding that company, their ties to OpenAI. There’s a version of that story that doesn’t work out, right? But there is a potential lot of upside for Oracle if they do end upsucceeding.
8:49 spk_0
So what’s the version of that story that potentially would cause it not to work out?
8:53 spk_3
Ithink OpenAI probably not being a leader in the AI.Ecosystem, right? I think if you look at the headlines over the last couple of weeks, I mean, you can see actively that OpenAI is sort of scrambling here to catch up to Anthropic all of a sudden, right? OpenAI is ditching Sora, they’re ditching their video platform that they were working on, they’re ditching a couple of other projects, and all of a sudden realizing that they want to be more at the enterprise epicenter.If OpenAI was a publicly traded stock, Kenny, I think the shares would have been down pretty significantly over the last couple of weeks. And I think if you look at Microsoft, which has exposure to OpenAI, right, you saw Microsoft down over 5% last week when OpenAI had those headlines. So the market doesn’t quite have a way to price that right now. There’s something interesting going on there that I think that you could have questions on.
9:37 spk_0
So, so, so then now let’s talk about kind of the other elephant in the room, which is, which is, which is the broader market and the, and the, uh, uh, the Fed and interest rates and where we think it’s potentially going. And then what that means to, you know, to a long-term investor, to someone who’s maybe just starting out, doesn’t make it, should they really be that concerned about whether interest rates go up 0.25% of a basis point or down 0.25% of at this point in theirlife?
10:00 spk_1
Well, that is, that is the question, right.You know, because you can wait and, and try to pick opportunities, but right here, we don’t know. We’ve been seeing what’s happened with labor for a few years. It’s sort of stalling out, but there’s not big layoffs. And it could be, you know, part of it’s the supply being reduced, you know, for reasons we are well aware of in terms of immigration. Also the impact of AI, which was still unfolding in terms of job creation, job loss, all that sort of thing. But that really has been in abeyance. Jobless claims come out every week, and that tells us that’s an early.Warning signal and so far it is fine. It’s holding in. Yes, it is. And so really the, and we’ve gone back and forth in the fall. The Fed was more concerned with the growth slowdown. That’s where they cut rates. Then it became now inflation was sort of under control. Now we’re, you know, you have to be concerned about inflation from here. You saw the OECD last week upped their inflation estimate from 2.8% in the beginning of this year, just a few months ago, to 4.2% for us. That’s big.
10:53 spk_0
At the end of the year or 12 months from
10:55 spk_1
now, um, 12 months from now, the 4.2%, yeah, they do it on an annual basis, and, uh, that’s significant, you know, and that’s where the Fed, I mean, there was, you know, 50% probability the Fed could hike, right? Well,
11:06 spk_3
yeah, well, that, that to me is the biggest part of the story, right? Are we talking about the Fed’s next move being a cut, or are we talking about the Fed’s next move being a hike, right? You don’t have to go further back than 2022 to remember how that can impact the market.So to me, should you be concerned? I mean, if you’re a really long-term investor at my age, maybe not, but for the next couple of years, yes, if the Fed’s bias is toward tightening, that is not the best environment to be taking
11:29 spk_0
risks agreed, but look where we’re at. We’re at 3.25%, 3.5%, which is historically low. So if the Fed raises by 25 basis points, we’re still at 3.5, 3 and 75%. We’re not at 6 or 7 or 8%. So in my mind, I think it’s, I.For a long-term investor, especially for someone in your age category, right, a millennial or, or a Gen Z, I don’t think it’s that much of an issue.
11:52 spk_1
Yeah, I, I tend to agree because we know there’s a lag effect. So we would not see this speeding through the system for another 689 months, that sort of thing. And by then, we, one would assume this Iranian situation will be resolved, yes, and oil prices will come back down and the market will very much look at it as a one-time short-term disruption.And we’ll look through whatever it costs in terms of margins and earnings for whatever companies are affected, right?
12:14 spk_0
AndI think that’s how, I think that’s how, well, I think that’s how investors in general should look, but certainly, you know, these two should be looking through that and looking at themes and sectors, right? And so, to, you know, to Amanda’s point, she loves technology, but I mean, I, I don’t want to speak for you. Go ahead.
12:31 spk_2
Yeah, we were talking last night about, you know, what are some of the other, uh,industries
12:36 spk_0
to within tech, some of the subsectors within picks and shovels is a perfect, is a perfect, uh, uh, example of that.
12:43 spk_3
Yeah, we, we picked Uber too within the last 12 months. The candi we the stock has not done great since we picked it, right, but if you think about the long term.That’s trying to get access to the long-term switch to autonomous driving, right? And is Uber the network that that eventually happens on, whether it’s a Tesla robotaxi via Uber or Waymo via Uber, but can Uber successfully be the, the infrastructure, the technology infrastructure where that’s happening? I think those are important questions to ask right now, right? Because when we think about autonomous driving, it’s going to happen, right? It’s going to come. Who
13:14 spk_0
wins?It’s
13:15 spk_3
already
13:16 spk_0
here.
13:16 spk_3
It’s here, but I do think at some point it’s gonna be most of the rideshare.Or rideshare cars that you take and so who wins out ofthat, I think is interesting.
13:23 spk_0
Yeah, I gotta tell you, I have not gotten in a car yet where there hasn’t been someone with their hands on the wheel. I just can’t. Maybe it’s me. Might be, you know, oh, I want that on video when you do it, Kenny. You gotta do, you’re gonna do a selfie video and the idea of getting in the car and just going like this and letting the car drive me is a little bit unnerving.
13:40 spk_1
No,no. And there’s been with Tesla, which has not had fully automated, but there’s been a number of fatal accidents because people thought it was OK. And then next thing you know.You know, not a goodoutcome.
13:55 spk_0
So I want to ask another question, especially of you two. SpaceX. Tell me what you think in terms of, is it something you’d jump into when it goes public? Do you think Elon Musk is going to change the rules and allocate X portion to make sure that the average working person, that the retail investor is going to get a real shot at getting in before it goes public?
14:19 spk_3
I’m not someone that is ever gonna sit and say that I love buying an IPO right when it IPOs. Um, I’ll give credit to my dad on that one. He taught me a lot about investing and showed me how that can go pretty often. So I, I don’t know if I would be jumping in in say June or July when the IPO, but I do think SpaceX is interesting, Kenny.Because they also merged with XAI, right? And like, what does XAI do? I, I think that that has sort of almost taken down some of the value of SpaceX to me because they’re spending a lot of money in the XAI space and X, and it’s been interesting because I don’t really quite get what that business is. SpaceX I get, and I think that would be an interesting space to be over the next couple of years.
14:55 spk_2
Yeah, I mean, I think, I, I, I think, uh, obviously I’d have to talk to my advisor here next to me. Um, he, I, I, I think, I think you tend to play it a little safer than I want to play it, but, um, no, I, I definitely think we’d have to look at it.
15:08 spk_0
I, I think it’s very interesting. I think the idea that Elon Musk could potentially take a chunk of that.IPO and say this is allocated like for the, because most of the time, Joe Q. Public doesn’t get a chance to get in until after it goes public and then they’re paying up or, you know what I mean, whatever. In this case, I do think it’s gonna come and then it’s gonna go higher. I just think it is, right? But I think that, I, I think the talk is that Elon Musk is gonna say, look, I, I want X amount.To be to a retail investor,
15:40 spk_1
right, yeah, that would be pretty interesting because it used to be like that, you know, many years ago. I’m old enough to have been in that market because also companies were a lot younger then in terms of they weren’t so mature. They didn’t have billions in sales already. It was really the concept. It was on the common, so you had, you could get in after the IPO or that day, but now it’s already so discounted, you know, and it’s hard to price those in a fair way,
16:02 spk_0
right? It’s gonna be interesting to see how it gets priced.Uh, and all the, you know, all the hype leading up to it because clearly it will be the largest IPO in history for sure. Um, the other thing that I’m always, I’m always intrigued about is where will he pick? New York Stock Exchange or NASDAQ. Now, now, I’m biased. I spent 40 years at the New York, right? Um, but it’s gonna be interesting to see the message that that sends as well,
16:28 spk_3
right?I’ve heard a,Sort of on background from a fair amount of companies that I think people want to be in the queues these days, right? And so you have to go to NASDAQ if you want to get in the QQQ and SpaceX would be a classic QQQ style company? Isn’t
16:41 spk_0
there already talk about that’s part of his negotiation at NASDAQ because they want to be in the queues,
16:47 spk_3
right? Yeah, I, I would think that would be more of the logical fit when you think about the way things are indexed now, but I certainly I’ll be rooting for the New York Stock Exchange.
16:57 spk_0
Yeah, I’m reading the stock exchange too, but it is what it is. OK, so in any event, let’s talk about this. Let’s talk about where there are, uh, in your mind perceived opportunities outside of tech, right? What other sectors look interesting to you or what other sectors should, you know, a millennial or a Gen Zer be considering, Barbara?
17:14 spk_1
Well, I think you want to look at the financials which have gotten killed here, you know,
17:18 spk_0
they’rethe worst performer thisyear,
17:20 spk_1
right, right, because it’s, it’s not only the, the big tech, which of course I’m dying to talk about that meta, you know, buses that we can’t right at this moment, but I think, you know, you look at healthcare, you know, there’s been big sell-off there, and there’s, yeah, and why, why
17:32 spk_0
is healthcare selling off? That’s confusing to me. Yeah, no, I don’t know. It’s down, you
17:36 spk_1
know,
17:37 spk_0
I just think,
17:37 spk_1
well, I think it’s any area where there was already decent appreciation. I mean, look at, at Eli Lilly. I mean, Lily is aIt’s certainly gonna be a compounder for years to come, and yet it’s come off its highs. It’s still about 25 times earnings, but I think anything, it’s just de-risking the portfolios at this moment in time. So, and a lot of the good healthcare stocks we’re reflecting, you know, they’re good earnings. So I just, I think it’s more that in the financials, of course, we know what’s going on there, that the economy slows down, inflation, etc. you know, and without interest rate cuts, you know, that also hurts their story
18:07 spk_0
withoutinterest rate cuts, without,
18:08 spk_1
yes, without
18:09 spk_0
interest rate cuts, right? But I gotta tell you, see, like in that group, JP Morgan is, is.One of my favorite names, right? I own it. I’ll continue to buy it. It gets weaker. I’ll continue to buy it. But the same way, like, you know, in the other names that, you know, I own personally, whether it Apple, it’s Amazon, I own all those big names in the spaces that they’re in. And so on any pullback, it makes sense to put more money to work. Well,
18:30 spk_1
it does. And also, it’s interesting in the credit cards. There’s more regulation risk there, but you know, when you look at the analysis, if they were to cap their interest rate, um, at 10%, I mean, you would really hurt the consumer. Do you think that
18:42 spk_0
happens?
18:43 spk_1
No.No, just because, you know, they’re, in the end, they have to be rational, you know, and see what the impact, and when you see the analysis, you know, about the, you know, the credit that would be withdrawn, I mean, we are a credit-driven economy. Consumers spend, it’s a huge amount that they charge on their credit cards, and that would dry up and a lot of people who have credit cards would no longer.You know, they would not qualify and that’s not good for consumer spending, which is what has been keeping, you know, this economygoing.
19:07 spk_0
So let me ask you a question, all three of you, because I want your, your own opinion. Do you think, and I know how, I know where Barbara’s going to sit on this, do you think the game has changed for investors, meaning,Maybe not me and you, but, but the millennials or Gen Zers. Is the game different or is the theme still build a portfolio, diversify it internationally, sector-wise, or is, or is, are the rules all different?
19:33 spk_1
You’re asking me? Yeah, because I’ll tell you, well, I, I’ll tell you, I think they are, you know, for the younger generations, you know, they’re more risk embracing. They’ve had.This would be, well, depending if we end up calling this a bull market, I think we still will, but they’ve had years of a bull market since 22 when everything went down because the rapidity of the, uh, Fed rate increases, you know, but I think they’ve learned important lessons, you know, and also the meme stocks that also, that was quick and easy money and crypto, you know, right.
19:59 spk_3
Well, so I, I, I think Barbaberra’s getting at a point that I talk about a fair amount in my newsletter, which is sort of the, the V-shaped recoveries that my generation.has seen since getting in the market, right, all these people come in during the pandemic, maybe they’ve just graduated college, they started their first job, they just got a 401k for the first time, and I’m a pretty big believer in the old saying that the first crisis is the one that stays with you, right? And for our generation, their first crisis in the market was one of the greatest V-shaped recoveries of all time, from a stock market perspective, right? March 2020, everything tanks, and then everything comes.Back and you’re hitting a record high by August. And so I think you have a new generation of investors. You saw it last April, right? They came in right away. They came in right away and they said, we know how this works. It just goes right back up. And so that is the attitude that you’re now getting from people aged 20 to 30, whether or not it’s right,
20:51 spk_0
doesn’t.
20:51 spk_3
That’s the attitude that you’re getting from that generation of investors. Well,
20:54 spk_1
you saw it all last year. The retail is what.Kept everything going came in first. It wasn’t,
20:58 spk_0
OK, understood. But that works until it doesn’t, right? And so right now, are you in the camp, given what we just talked about, that we’re still gonna have this V-shaped recovery, or do you think it’s gonna be more drawnout?
21:10 spk_3
No, in the market this year, I would argue it’ll probably be more drawn out because I think what you have going on right now is a lot of second-order effects that you need to watch in terms of the economy, in terms of we’re talking about earnings estimates, right? I mean.Why is the market down so much? Because the market doesn’t believe that the S&P 500 is gonna produce 15% year over year earnings, right? You’re getting contraction on your PE multiple, which is essentially price telling you that they think that earnings estimates are too optimistic at this point. And so I do think there’s gonna be an interesting six months here where you don’t just instantly come back because one person doesn’t have the dial this time, Ken. OK, but
21:42 spk_0
wait a minute, I think the estimates now are in the 300s, aren’t they like 330.
21:46 spk_3
Yeah, no, the estimates, the estimates
21:49 spk_0
continue to go up, but we, and so we haven’t seen them adjust downward, right?
21:52 spk_1
And the S&P is not down all that much. It’s just less than 6%. It’s NASDAQ that’s down almost 10%, but that’s, and that goes with the thesis of taking profits from the high flyers, even though the fundamentals haven’t changed. I mean, I think money will rotate back into these mega cap names because they’ve still got sustainable double-digit earnings growth, right?
22:10 spk_0
And I think you have to look at names.If you own a name and it’s down, like Microsoft, right? It’s down. But if the thesis that you originally bought it hasn’t changed, if it hasn’t turned negative, then for me, it’s an opportunity.Right? If the thesis changed, then you say, OK, I gotta, I gotta change my, my, my, my assumptions. And now I have to change my outlook, and now I have to change my targets, right? I think the other thing I think that what is very interesting for, for to consider, especially if you’re a, a long-term investor and you’re younger, right? You, is that, you know, you buy something and suddenly it goes up. It’s up 50%, it’s up 70%.What do you do? Do you, do you sell it? Do you trim? Do you do nothing? Do you hold it? Do you sell it and try to take it off the table, but then you like the name. So, here’s the point. You own, you own Microsoft at 200. It goes up to 350, now you sell it. You say, OK, you’re gonna take that money off the table, but then it goes back down to 3.25%. You, you like it again, you start buying it. Well, you’re buying it at 3.25%, you owned it at 250. Why are you selling the whole thing?If you still like the name, trimming is one thing, but I’m never, I’m never, uh, uh, a proponent of selling the whole thing unless the storychanges.
23:21 spk_1
Yeah, I agree with that because also, um, if you’re the retail investor, you’ve got taxes, and are you smart enough to really say, OK, I’m gonna pick the exact moment it’s at its peak, short term, and then get back in exact low.Right, unless
23:33 spk_2
you’re unlikely,
23:35 spk_0
yeah, unless you’re in, unless you’re in a tax advantage account where you don’t run into that problem. But if you’re in an investment account, that makes perfect sense.
23:41 spk_2
But I do think there are some people in maybe my generation, our generation who, who perhaps think that maybe they can time the market, um, just given, given.What we’ve
23:52 spk_0
seen over the past, and that’ll be a lesson you have to learn. Yeah,
23:55 spk_2
yeah, it’s not, it’s not a lesson I’d like to learn, but yeah, no, but it
23:58 spk_0
will, but to your point, it will be a lesson,
24:00 spk_1
and I think we have that, that question right now with energy stocks, you know, in terms of the big run up there, and that’s where, you know, definitely, I, I mean, I don’t like cyclical names, you know, and we do have a longer term thematic thing going.You know with data centers and all the increase in power and all that sort of thing, but right now in terms of pure oil stock plays, you got to be taking money off the table here again, if you think that this will not, that that Trump will figure a way to get out of there, right?
24:23 spk_0
Youcould take some money, but I wouldn’t sell all the oil stocks. I’d take, I’d peel some off,
24:28 spk_1
right?
24:28 spk_0
But I think to, you know, to Amanda, to your conversation aboutUh, the, the comment you just made, um, I, I think it’s important to understand what you’re building and, and, and the time frame that you’re building it for, right, and your goals and trying to reach those goals. I, I think, I think you have to kind of keep that picture, and it’s OK to have, you know, you can have a long-term investment account and then you could have a Mad Money account. Having a Mad Money account is great, right, because it, it allows you to, it allows you to learn some of those lessons.Right? And I think what’s also interesting, this recent pullback in the market to, to the point you just made and you just made about, you know, getting in and buying it in the VK shape recovery, a lot of these people that, you know, started doing that, now suddenly the market’s turned on and they’re going, oh my God, oh my God, oh my God. Right? And then they, and then they, and then they jump out.
25:18 spk_1
Well, it’s interesting to see what’s happened in the crypto market, you know, that was easy money for a while, and it has not been. If you stayed the course and kept jumping in, you’ve just lost money all the way down. And so that is, you’re talking about you learn the lessons, you learn the hard way, and those are actually the best way to learn, you know, just make sure, make sure it’s alittle
25:36 spk_0
money
25:36 spk_1
you’re risking.
25:37 spk_0
But speaking of crypt.Barbara, where do you stand on that? Yes, no? Should it be a little bit of part of your portfolio, or no?
25:42 spk_1
You know, I’m much more in the camp of the stablecoins, you know, where you actually have real things backing it up, treasure treasuries or dollars, but I’m not a believer in like Bitcoin, and it was to me it’s Ethereum tulip mania. I mean, the underlying, you know, blockchain technology is valuable. There’s so many uses, but, you know, I don’t buy it. Oh, just because there’s limited supply that, uh, this is a good purchase. I, I don’t see the value, and I never have, and I’ve tried. I’ve tried, but I don’t,
26:06 spk_0
that’s it, and you.
26:08 spk_3
This isn’t an official baron’s perspective, but I’ll just give my perspective. I, I think if you want to own a little Bitcoin, own a little Bitcoin. I’m talking like 1% of your portfolio.
26:18 spk_0
Like
26:18 spk_3
if you’recurious about it, then yeah, because I also think owning something is a good way to make yourself need to understand it more, right? So if you want to buy a little bit of crypto and get into it and get interested in it, sure, that’s fine. Do I think it’s gonna take over the US dollar? No. But like, you know, own a little, whynot?
26:35 spk_0
Yeah, I, I, and, and again, I’ll say this, you can say it or not, but you know, we all know someone that got into Bitcoin, you know, when it was trading at 100 or 200, right now it’s trading 50, and those people have made a fair amount of money, right? And, and they
26:50 spk_1
find their password.
26:52 spk_0
What do you say they can’t
26:54 spk_2
find their pass
26:54 spk_0
can’t find their password. Oh my God, can you imagine?
26:57 spk_2
Yes,I think that’s a real,that’s
26:59 spk_0
a
26:59 spk_2
real thing.
27:00 spk_0
It is a real issue. All right, well, listen, uh, we are running out of time, but I really appreciate this conversation and thank you for being a part of it. Uh, and I’d like to circle around maybe 3 or 4 months and revisit this with the same panel. We could talk about kind of what we discussed and where we are and how everything worked out. Until the next time, take good care.
27:24 spk_4
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