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questions. 888-99-Chart. 888-99-CHART. They

1:01

will be played and answered on an

1:03

upcoming Investalk podcast. Welcome

1:06

to Investalk. Above average is

1:08

resting for the average investor. We try

1:10

to bring you useful information and answer

1:12

any questions you might have as long

1:14

as they're financial. 888-99-Chart is our number.

1:16

888-99-24278. Hey

1:21

guys, this is Matt from Merced. Just

1:23

love the show and everything you guys

1:25

do and find it very educational. So

1:27

thank you. My question is

1:29

about relative strength. I'm curious just

1:31

how it's calculated and

1:34

what length of time is typically

1:36

used when they're calculating relative strength

1:38

of a company versus the market,

1:41

as well as what the near-term

1:43

performance is. Typically, if there's

1:45

any statistics based on if a

1:47

company has 90 for relative

1:50

strength or if it's lower, do they

1:52

typically underperform? Is there a

1:55

sweet spot where you

1:57

would find better near-term performance?

2:00

Just curious any information you guys have on that and

2:02

thank you again. Bye. Bye. Well,

2:04

typically relative strength is

2:07

looking at the last 52 weeks,

2:10

52 weeks of market

2:12

performance and comparing what

2:15

that socks performance is, is

2:17

looking at all the different names in the market

2:20

and whatever number that

2:23

is, it's outperforming that percentage.

2:25

So if the relative strength is 32, that

2:28

means over the last 52 weeks,

2:30

it's outperformed roughly 32% of all issues. Now,

2:35

that just kind of tells you what's happened in

2:37

the past. It's helpful, I

2:39

think more in relation to different

2:42

companies in the sector than anything else

2:45

to see, okay, what's been outperforming over

2:47

the last year or not, because a lot

2:49

of that last year's performance

2:52

of a particular company is related

2:54

to how strong the sector is. Now,

2:57

if a stock has a relative strength in the 90s,

3:00

meaning it's outperformed 90 plus percent of the

3:02

market over the past year or the stocks

3:04

in the market of last year, then

3:08

those trends, they tend to stay in

3:10

place. Now, that doesn't

3:12

mean that you just go buy those

3:14

because they also have probably the biggest

3:16

risk of reversing

3:18

dramatically because they

3:21

went up so much because the market's pricing in

3:23

a much brighter future. And as

3:25

long as that brighter future holds,

3:29

that trend will likely hold. But if

3:31

there's some sort of earnings disappointment, they

3:33

can drop dramatically, 20%, 30% in one

3:36

fell swoop. So be cognizant of that.

3:39

Outside of that, I don't know if I would

3:41

use relative strength for a buyer-sell

3:43

decision. I think it's more of a

3:46

piece of the puzzle to take

3:48

stock of, so we say, pun intended.

3:52

Yeah, I think that's accurate. I think how I

3:54

like to think of it is you

3:56

buy a company for its fundamentals and

3:59

you're Going to have to do it. You decide when to

4:01

by a company based on it's technicals. Yeah.

4:03

It's pretty much and relative strength is. A

4:06

very simple. Technical.

4:08

And give. Now. There's a lot

4:10

better ones in a we tend to use

4:12

more. Of a big averages

4:15

patterns, for example, salaries and

4:17

patterns are also much more

4:19

helpful than. A around

4:22

six number x Little. Managing

4:26

multiple mutual funds, researching professional services

4:28

where to put your savings? If it's

4:31

about money, and if it's important to

4:33

you, we want to know more about

4:35

us. We're here for your Eight Eight

4:38

Eight Ninety Nine chart is how to

4:40

read Steve Justin right now on Invest

4:42

Talk. A Guys I

4:45

love the show. I got a

4:47

quick question about four o one

4:49

K and as thing my company

4:51

offers a pre tax allocation that

4:53

I can invest and I know

4:55

what the differences between a Roth

4:57

Ira and a traditional ira? A:

4:59

Could you tell me what the

5:01

differences between a pretax com contribution

5:03

versus a Roth ira? Thanks. A

5:07

Free Taxes is simply a traditional

5:09

four o one K, right? You're

5:11

you're not paying tax on it

5:13

pre tax, a Roth contribution A

5:15

Rough Investments are post tax meaning

5:17

you pay the tax on that

5:19

and you don't have to pay

5:21

anything into the future. It's. That

5:24

simple I think sometimes you get a

5:26

people get our fancy with the language

5:28

but. It's. That simple pretax

5:30

is traditional ira for

5:32

okay. Post. Taxes Roth.

5:35

Ira. Four One K Hi

5:37

this is Kevin calling from Southern

5:40

California recently. You guys were talking

5:42

about Five Twenty Nine. I'm wondering

5:44

if it's better to hold the

5:46

Five Twenty Ninth in my name

5:48

and my wife's name vs holding

5:50

them A in my kids name

5:53

just because they know that they

5:55

would need to be. Claimed

5:57

and like financial aid.

6:00

Location so I'm wondering if it's

6:02

better to hold them in my

6:04

name and till they actually are

6:06

about to use it for education

6:08

and then transferred over to their

6:11

name When a when the time

6:13

comes. Hopefully we can measure your thoughts

6:15

on a show. Thank you. Yes,

6:17

Soon as recently as last

6:20

year is appearing on the

6:22

Five Twenty Nine Plan for

6:24

fafsa, it's. Look.

6:27

Assessed at a maximum rate of about

6:30

five and a half percent five point

6:32

six, four percent vs. on a child

6:34

or it's under their name, it can

6:36

be up to twenty percent in on

6:38

as a formula so makes as the

6:41

sermons from obscure federal student aid impact

6:43

perspective. You. Do benefit from having

6:45

it in the parents name versus the

6:47

child's. And isn't. Google

6:50

right now be barred program was here

6:52

but what you're talking point is it.

6:54

it ignited I charts and eighty nine

6:57

nine two or two surveys were right

6:59

now. Invest

7:05

taught covers make each podcast unique

7:07

Aus Cohen about itself. If it's

7:10

worth holding onto our show a

7:12

solid. their questions are curious. Pillow

7:14

I had saved up around eighty

7:17

thousand dollars now wondering what I

7:19

should do to make it grow

7:21

careful. I'm just wondering is a

7:24

surprise travel looks by get stomped

7:26

down quite a bit. Concerned it's

7:28

a didn't. like the temple

7:31

today at the chinese it added

7:33

to the south carolina and i

7:35

waited too long and clever the

7:37

scenery situated in some areas of

7:39

them population and just incline steve

7:42

veasley and now luke guerrero are

7:44

always ready with their unbiased dancers

7:46

and the to vote for your

7:48

classic example of chasing you don't

7:50

see see yields next twelve months

7:52

price earnings is around thirty i

7:55

just don't see it at this

7:57

price don't forget to call invest

7:59

talk 88899 chart. This

8:08

is an InvestTalk Best of

8:10

Caller Questions compilation program. Your

8:13

comments and questions are always welcome.

8:16

Call anytime. 88899 chart. That's

8:20

88899-CHART. Let's

8:25

grab another caller question from 88899 chart. Question

8:28

on Volume and Capitulation. If

8:34

you're looking at a stock chart and

8:36

some of the data on

8:38

it, when you're looking for capitulation, is there

8:40

a general rule as

8:43

to where you're looking at, say, volume

8:46

is three times the average all

8:48

of a sudden that day or

8:50

compared to that day versus three months?

8:52

What are you looking for on a capitulation

8:55

type day and where do you

8:57

find it? If you didn't get to look at the

8:59

market for a day or two and you saw

9:01

a big movement so you go to research it, where

9:04

do you look for that volume and how do you know what

9:06

really truly is? Is it two times, three times

9:08

the amount that the activity of the

9:11

investors is showing you? Okay, sentiment

9:13

is this and that. What do you look for

9:15

in terms of volume and capitulation? Thanks,

9:17

guys. Appreciate it. Take care. Good question.

9:19

Typically, we're looking for

9:21

roughly double, maybe triple the

9:24

50-day average volume. What

9:26

he's talking about is when a stock is maybe

9:28

in decline, and this could happen the other way,

9:31

where stock's in a huge uptrend and then suddenly

9:33

there's just a huge spike in volume.

9:35

Oftentimes, that's capitulation of shorts out

9:37

of the market or out of that position

9:40

saying, okay, I've had enough, had enough pain,

9:42

and they cover their positions. That gives the

9:44

market, that stock, a big surge higher. Then

9:47

once the volume kind of goes back to normal

9:50

levels, you can oftentimes

9:52

get a reversal because

9:55

of, like The caller said, a

9:57

capitulation. They're capitulating to, okay, I've had enough

9:59

pain. The Nevada see they were short

10:01

has gone up too much or were

10:03

long and it's gone down too much.

10:06

fear sets in. And. That.

10:08

Giant. Surgeon Volume: Like I said,

10:10

at least double. usually triple the

10:12

fifty day average volume. That's.

10:15

A signal that okay we reached Max

10:17

fear on the downside, or Max agreed

10:19

on the upside. You. Typically also

10:21

wants not just that spike in

10:24

volume, that one indicator. For.

10:26

You also want that reversal follow

10:28

through. Meeting. Typically. Happens

10:30

is when a month when a

10:33

company market is down significantly, you

10:35

get that capitulated volume on a

10:37

intraday. You. Reverse that

10:39

same day. And you close

10:41

at the highs if it's been a box

10:43

with down or vice versa where my thoughts

10:46

going up at huge volume big handle all

10:48

time highs are fifty two week i am

10:50

an error versus and close the to lower

10:52

the day. And. It gets follow through. At.

10:55

Same direction the next day. And.

10:57

That's when you're kind of looking for now.

10:59

we have charts series, professional charts and guy

11:01

on there are. Free. Stockyards doctor.com

11:03

the decent ones on Amazing. They'd

11:05

seen as decent. nothing about to

11:07

the in our professional tools but

11:09

if it could work if you

11:11

know what you're looking for. Ah,

11:13

but that's the way you think

11:16

about the pitcher, the divine and

11:18

whether or not you've seen it

11:20

or not. every investor is working

11:22

to build a secure financial future.

11:24

Would just be an opportune. Time

11:26

to get them to. I knew

11:28

it. It's everyone. Situation is different.

11:30

Get your thoughts on C R

11:33

M Salesforce and so are their

11:35

questions in. I was just calling

11:37

for your assessment of Blackstone Incorporated.

11:39

Twenty Four Seven, Rain or Shine,

11:42

Invest talk is made better by

11:44

the power of you. Eight Eight

11:46

Eight Ninety Nine Chart Skirted Chris

11:48

in mean you are fucked with

11:51

the Japanese stock market. Here

11:53

he just and thanks for take my all

11:55

pressure on that you guys do I know

11:57

over the past few months I've heard you

11:59

mentioned. couple times just in passing

12:02

how they've been really improving

12:06

their stock market overall over

12:09

the past couple years, really, from decades

12:11

of lows. And

12:14

then it's no secret that Buffer, in

12:16

his recent letter to all

12:18

his investors, he seemed pretty

12:20

optimistic on him, but it's really

12:23

rallied. So I was calling to

12:25

see, get your opinion if you

12:27

think this rally could continue for a

12:29

while or if more of a, it's

12:31

a wait for a pullback at this point,

12:34

Sumitomo, S-S-U-M-Y, is

12:38

one of the stocks I've been looking at over

12:40

there, but more just the market in general as

12:42

well. Yeah, Japan

12:44

has certainly

12:47

researched and a lot

12:49

of that is corporate reform.

12:53

They were the China before China and

12:55

they had a real estate boom and a bust,

12:57

kind of like China is going through right now

13:00

and demographic demise like

13:02

China is going through right now. Now,

13:05

it's definitely different in some

13:07

ways. Obviously, it's a democracy,

13:09

it's a series of islands,

13:12

a different customs than China has,

13:14

but in many ways, they're more innovative.

13:16

They were smart to diversify their businesses

13:18

away from manufacturing in China because they

13:20

didn't have the people. So that's why

13:23

you have a lot of Honda

13:25

and Toyota manufacturing plants set up

13:27

here in America. And

13:29

from a political standpoint, they've kind of tied

13:32

their hands to America as well. So

13:35

all of that, I think is good.

13:37

They've done a lot of smart things

13:39

and they've reformed some issues that were

13:41

left over from that period. They did

13:44

a lot of bad things back then

13:46

by merging bad banks with good banks

13:48

and making mad banks, right?

13:50

Not writing off bad assets and things like

13:52

that, but we're 30 plus years

13:54

on and a lot of

13:57

that Has healed with time. Though

14:00

I think there is more

14:02

runway longer term. However,

14:04

Near term. Such. Really started

14:06

to see articles about it. You typically

14:08

are gay. It's it's it's. It's

14:11

ready for pull back and so I

14:13

would be patient on it. I have

14:15

no problem. Sumitomo a very large conglomerates

14:17

there by it is is over bought

14:20

and I would wait for Fullback X

14:22

because they'll find other listener question from

14:24

Eight Eight Ninety Nine chart the morning

14:26

that Dublin for New York. Thank you

14:28

for that You do. I. Have

14:30

a question on your services if we

14:32

get a portfolio review and we still

14:34

have a lot more questions. Is there

14:37

still a possibility where we can pay

14:39

for the our? I'm sure they'll probably

14:41

a lot of westerners are other options.

14:43

Bunch of jerks about that. Like about

14:45

the yes I have. Great day by.

14:48

A. Great question but the answer is no

14:50

such as and something we do. I do

14:52

answer questions from time to time. Where

14:55

people email directly and I just shoot

14:57

them an email back. That is something

14:59

I do. I just as a. A

15:02

nice to be for for listeners in

15:04

the thank you to listeners but no,

15:07

you know we charge to manage full

15:09

accounts quarterly basis and bill. financial plans

15:11

do all the things that kind of.

15:14

I. Sure our clients towards financial

15:16

freedom and their financial goals.

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Were a full suite financial base

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want were clients want that's great

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if they. In. A once

15:29

kind of one off advice will give

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that every once in awhile but there

15:33

are other advise other that will charge

15:35

of a a flat. He added noting

15:37

that a good but you know. It's

15:41

the call them. here

15:44

listen to him as talk everybody arms depots

15:46

way we want to answer your questions on

15:48

the sideline numbers always ready for you eight

15:50

eight eight ninety nine charts beginning our experiences

15:53

were here to answer your question You

16:03

are listening to the Mass Talk

16:05

Test of Caller Questions

16:07

Compilation Program. Your

16:10

comments and questions are always

16:12

welcome. Call anytime, 888-99-Chart.

16:17

That's 888-99-CHART. Justin,

16:21

Steve, or Luke will answer them

16:24

on an upcoming podcast. Hi,

16:26

Steve, Justin and Luke. This

16:29

is Jay from Salt Lake City. I have a

16:31

question. So the company I work for, they use Fidelity

16:33

and other 401k programs, and

16:35

a lot of people use their active management or whatever.

16:38

And I know that they're fiduciaries, but

16:40

they're also broker dealers. And

16:42

what I was kind of wondering is what

16:45

your guys' thoughts are. I know, for example,

16:47

you guys do research on companies' sectors, but

16:50

I don't see them doing that. Could you

16:52

either touch on what they do or maybe

16:54

what questions to ask them? I

16:56

would appreciate it. Thanks again for having a great show. Well, you have a great

16:58

show. Thank you. Bye-bye. Thank

17:01

you for that. Well, Fidelity is just

17:03

your 401k provider. I'm not sure what

17:06

active management they offer there.

17:09

Fidelity is a large organization. It could

17:12

just be a record keeper. There might be another

17:14

company that is doing the active management. I

17:16

know we are working on actually bringing

17:19

401k management to our clients and

17:21

listeners. So be on the lookout for that. I'd

17:24

leave a little more detail here to give

17:26

you a sense of whether that's good or

17:28

bad. Know that if it's

17:30

just Fidelity, they're going to be

17:32

ones wearing both hats. They could be acting

17:34

as fiduciary at some points and a broker

17:37

dealer and others. And a lot

17:39

of people get advisors confused with

17:41

their broker. For example, we

17:43

use Schwab as our broker, but we're not Schwab.

17:46

We utilize Schwab. Our client accounts are set up

17:48

for Schwab. You always

17:50

want a third-party custodian holding the assets whenever

17:52

you're dealing with an advisor. And

17:56

we are fiduciaries, but Schwab is the broker

17:58

dealer. So you may be talking to a broker. Ooh,

18:00

a producer. I don't know that

18:02

using Fidelity as direct keeper and

18:04

the custodian of the assets, That's.

18:07

Why he a little more data if you want

18:09

to. Shoot. Me an email

18:11

at Give Me a call. I certainly

18:14

can try to get the requisite information

18:16

needed to. Give. You a better

18:18

answer? So please do that. Go to

18:20

investhop.com. And click on the contact

18:22

Us button and send me a message. Managing

18:27

multiple mutual funds, researching professional services

18:29

where to put your savings If

18:31

it's about money, and if it's

18:33

important to you, we wanna know

18:35

more about us. We're here for

18:37

you. Eight Eight Eight Ninety Nine

18:40

Charges, how to read Steve are

18:42

just and right now on Invest.

18:44

Talk like question that coming from

18:46

an early investor. Pretty young here.

18:48

But. I guess. I. Have some

18:51

type of here in my portfolio that

18:53

I'm wondering. And. Of where

18:55

and how to diversify. I currently

18:57

have. On Spies

18:59

booed Tesla. Apple, Google,

19:01

Amazon, Walmart and blow. My favorite

19:03

since Air Bnb. I guess my

19:05

question is in a letter some

19:07

your opinion by know come as

19:09

early investor the market can be

19:11

pretty scary. What do you think

19:14

of those companies I tried do

19:16

either. a little bit aggressive but

19:18

still have some type of safety

19:20

and there as well and are

19:22

guarding most companies. Do. You think

19:24

there's any other companies that are out

19:26

there? That said, provide some more growth,

19:28

especially in me. A Tough markets we're

19:30

in right now. Thank you. Were.

19:32

Investing certainly can be scary.

19:34

It's it's daunting. Because.

19:37

What? It is. It's core is it's

19:39

trying to. Take. Your own

19:41

financial future and on it's. Been.

19:44

So in that pursuit, it's

19:46

important to. One.

19:48

Know you're doing and to be disciplined. So

19:51

spy and yellow. Vo.

19:54

Is it is and garner some

19:56

Pts by others Pts. You.

19:59

Also. have Walmart, Tesla,

20:02

a handful of large cap names that

20:05

are also already included in

20:07

the ETFs that you own. So what

20:09

you're doing here is you're over weighting some of

20:12

the largest names in the US market.

20:15

So if you look historically at

20:17

US market returns, you

20:20

tend to get higher expected returns from

20:22

small caps, then mid

20:24

caps, then large caps in a monotonic way,

20:26

meaning the expected return is higher as you

20:28

go further down the size spectrum, and

20:31

you tend to get a higher expected return from lower

20:34

relative price companies because you're buying

20:36

assets for less rather than

20:38

buying them for more. That's

20:40

what a value versus growth company means.

20:43

You also tend to have

20:46

higher expected return for more profitable

20:48

companies. So thinking about

20:51

what you hold in your portfolio, and again

20:53

it's difficult to know without knowing allocations, there's

20:55

a lot of overlap between

20:58

those funds. There's

21:00

a lot of overlap in your individual stock

21:02

holdings. So if you're looking to diversify, they

21:04

say diversification is the only free lunch and

21:07

investing, it's true, what I

21:09

would suggest is look outside

21:11

of tech, look

21:13

outside of the flashy names, look for

21:15

the boring businesses, look for

21:17

the good businesses at fair prices, invest

21:20

in some mid caps, look at some energy names,

21:22

look at some materials names, some

21:24

of the commodities sectors that are at

21:27

lows because commodity prices have been lower. So

21:29

I would say with your

21:32

individual stock holdings, maybe

21:34

that's where you take on that extra

21:36

risk and you look for companies outside

21:38

of those large cap names

21:41

that you're already holding through those ETFs. Thanks

21:43

for the call. Got a question

21:46

for Steve or Justin. Hey

21:48

Steve or Justin, this is Blue

21:50

from Texas. I'm just calling about

21:52

ticker symbol S-A-N, Banko Santant here.

21:55

My question is how much

21:58

of your portfolio should you plan? and

22:00

the like ETFs and mutual funds. Hi

22:02

guys, calling in from Germany. I'd

22:04

like to know about currently Lumen

22:06

Technologies. I like your show, it's

22:08

a great add-on, added

22:10

value for me to listen daily. What's

22:13

your question? What does it mean when

22:15

a company's share price falls to cheap

22:17

prices and executive insiders don't buy more?

22:19

You're the best person to ask it.

22:21

Hello, this is Duncan from New York.

22:23

Thank you guys for all that you

22:25

do. I've been listening to you

22:27

guys for about a year now and you've

22:29

taught me a lot about long-term investing. So

22:32

let's go to Mac in Los

22:34

Cabos, Mexico. So let's get right

22:36

to one of our callers, here's

22:38

Ken in Texas. Now is a

22:40

good time to call Investalk 888-99-Chart.

22:44

I'm Money Manager Steve Peasley and we're here

22:46

to help you get better results if we

22:48

can with your invested dollars. That's our goal.

22:51

Do you have a question? Check in

22:53

now, 888-99-Chart. Transport

22:59

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23:32

is an Investalk Best of Color Questions compilation

23:36

program. Your comments

23:39

and questions are always

23:41

welcome. Call anytime, 888-99-Chart.

23:45

That's 888-99-C-H-A-R-T. Justin,

23:50

Steve, or Luke will answer them

23:52

on an upcoming podcast. Hi,

23:55

what are some ways to find

23:57

a Stock that can grow

23:59

over the ocean? Period of time on

24:01

won't you could debt is that

24:03

companies going to be fine. people

24:05

of people are going to be

24:08

by Hitler closer so I can

24:10

still make a quick profit into.

24:13

Well. As. Good as week

24:15

by adding be simple way to. Know.

24:18

If a company is going to grow over

24:20

time, Is if a company has

24:22

a good. Sustainable. Durable

24:24

Business. Would.

24:27

You do that. answer. Yeah. I

24:29

think the best predictor of future

24:31

profitability as certainly current and historical

24:33

profitability and not just profits in

24:35

terms of one off items, but

24:37

consistent sustainable profits As part one

24:39

of the question the second part

24:41

was how do you predicts would

24:43

profits are gonna be. Outside

24:46

of looking at the business, It's

24:48

impossible we don't have a crystal ball. And more

24:50

importantly, the other part of question, how can you

24:52

tell if somebody is going to buy a bunch

24:54

of a company Or sell a bunch of a

24:57

company? We. Don't know, you

24:59

can't predict investor behave yourself. I think

25:01

this really just highlights for with seems

25:03

to be a very young color to.

25:06

Stay. Disciplined early on in their investing

25:08

career and not try and. Well.

25:11

I think it goes back to what

25:13

most new investors ah what at market

25:15

as may look the market as a

25:17

way to make a quick buck. Either

25:19

way, gambling and a lot of people

25:21

are in the market today because the

25:23

pandemic. Because. Sports

25:25

were shut down, They

25:27

were gambling on sports and that was

25:29

kind of their way to potentially make

25:32

a quick buck. and they realize that.

25:34

Yet. In markets you can trade,

25:37

you can make a quick buck

25:39

if you positioned correctly, but that

25:41

is the minority of. Traitors.

25:43

Out there, the majority of traitors. they lose

25:45

money freshly for and options market. And you're

25:47

you're You're not knowing what you're doing. And

25:50

so. If you listen to the show, You.

25:53

Probably know this is not a show that trading.

25:55

Now we talked about with the near term

25:58

outlook to be for sector companies, cetera. What?

26:01

More. More focused on investing. Finding

26:03

good companies, quality businesses, etc.

26:05

Not chasing the latest fat.

26:08

That's it you want to do. Frank least they're

26:10

a lot of kind of fat is shows that

26:13

are out there they probably have a listen to

26:15

and yet to decide whether you want to be

26:17

a traitor or investor. Investors.

26:19

Over time. They. Tend to do

26:21

very well and make money traders. Only.

26:24

The very very best. The cream of the

26:27

crop. Actually make money.

26:29

Over the longer. Than. Just

26:31

a heads up there and hopefully

26:33

you develop into the form. A

26:36

Steven Jackson this is Daniel in Tennessee.

26:38

Really enjoy your podcast and I had

26:41

a general question for you when you

26:43

give a recommendation on your show for

26:45

a up by in like an entry

26:48

point to buy a stock. I

26:50

was curious. be as far do you

26:53

own it? Should I go ahead and

26:55

be looking to sell it or sledges?

26:57

Hold on to it since I already

26:59

own edges. Chi curious for your perspective

27:01

there. Thank you. Well.

27:03

First off, Never

27:06

take one man's opinion as

27:08

gospel including my own. This

27:10

is all my opinion based

27:12

on over twenty plus years

27:14

of experience. Managing. Assets

27:16

looking at charts, looking at

27:18

companies. Have extensive experience in

27:21

this. But even the most

27:23

experience investor in the world is

27:25

wrong. Regularly. Often.

27:28

But. Because I say okay I think it's

27:30

going to go down. Does. Mean it's

27:32

guaranteed to go down. You. To

27:35

look if the deer on research yesterday make

27:37

your own decision So. Let's

27:39

get don't just take what I say on air and say

27:41

I'm going to go do that. Take.

27:43

It as an input. Do. Your own

27:45

research. That. Make a decision. And.

27:49

In conjunction with what I say

27:51

and what your research says, etc.

27:54

You have to think of. Has consequences

27:56

For example is this investment in

27:58

it tax deferred it. Are not.

28:00

I are a Roth Ira, Four O, One

28:02

K, or Zenith taxable. Gotta wear the tax

28:04

implications of that. A lot of times.

28:07

When. I say hey it's here now

28:09

this would be good support level it's

28:11

down. Ten. Twenty percent. From.

28:14

Where it is to. Who. They're probably

28:16

means is that from a risk reward

28:18

perspective side great after this run. For.

28:20

Example. And maybe there

28:22

are better opportunities now. To

28:24

get into and as a geo is up to think about.

28:27

Most. People. Forget. About that and

28:29

it's simple concept that we learned very early

28:31

on a business school. Called Opportunity

28:33

Cost. Every amount of capital the you

28:35

have invested. Whether. That in equities, bonds,

28:37

real estate, whatever that is there is

28:40

an opportunity cost their meaning. you can

28:42

go take that money. And. Invested

28:44

elsewhere and potentially get a better return. And

28:47

often times that is. An

28:50

underappreciated. Way. Of thinking

28:52

about how to assess your portfolio for

28:54

assess your holdings. Most. People

28:56

do a based on oh my even.

28:59

Has. A bit up. my happy with

29:01

the investment of the sector the economy.

29:03

And the reality is so. things are

29:05

fickle. Asset. Classes, sectors,

29:08

companies, Sentiment ebbs and

29:10

flows and usually when you the happiest

29:12

with his time you actually want to.

29:15

Hobby. Trim it. Reallocate, To

29:17

that with something that. Has a

29:19

better future prospects of returns. Or

29:22

it's a future I'm talking extended

29:24

period of is logical, the focus

29:26

too much on just the shorter

29:28

and the treaty or investors were

29:30

looking at companies based on. The.

29:32

Merits of their business, The leadership, Their.

29:34

Assets. And comparing it to

29:37

others. And constructing a portfolio

29:39

that makes sense based on the current

29:41

market environment. And you're thinking

29:43

that way. But. You're going to.

29:46

Open. Your eyes, The fact that. There.

29:48

Is opportunity cost of everything you have.

29:51

A So that's the way you on think about. Not. Because.

29:53

When. I say gospel. But. Because.

29:56

Hey. Babies. Think about. Redeploying.

29:59

That apple pie. Why do the

30:01

questions make invest talk better?

30:03

Which of the would you

30:05

recommend? Because each color presents

30:07

fresh questions in their voice.

30:09

Window I know the right time

30:12

to treat profits. And listeners

30:14

instinctively realize that Invests talk

30:16

uniquely offers a welcome dose

30:18

of investing satisfaction. I think

30:20

you have a terrific show

30:22

and I've learned a whole

30:24

lot. so don't forget to

30:26

call Invest Talk. Eight Eight

30:28

Eight Ninety Nine Chart our

30:30

like question about eight or

30:33

fifty seven Plan of the

30:35

I've heard people talk about

30:37

my up shop where. This.

30:39

My understanding that that isn't a

30:41

child, that you can withdraw from

30:43

what he retired if you're taught

30:45

at the retirement age of United

30:48

Half. Taxed like up

30:50

where What? I

30:52

haven't heard much about it, but I did

30:54

not. Just could expand on that attribute said

30:56

about that you. Very

30:58

much. Are.

31:00

Looking at us for fifty

31:03

seven? Plan in the answers?

31:05

Yeah, you can. You.

31:07

Can. Ask. You leave your job.

31:11

Take penalty free Woods Rawls.

31:13

By. Your company. I.

31:16

Was he has to offer that typically

31:18

for fifty seven. I. Believe

31:20

our. Government. Every

31:23

government jobs so. Yeah.

31:26

There's nothing wrong with that.

31:29

With. With investing and forty seven their to

31:31

think he said they're just like four one k.

31:33

They've a little different rules and you have the.

31:36

Lookout. What they are they have

31:38

different limits on there are catch

31:40

contributions that you can make. Cetera.

31:42

Yeah. It is a bit different

31:45

and all these retirement plans a

31:47

bone wrinkles but it depends on

31:49

what your company offers and certainly

31:52

the born to go into your

31:54

contributions with your eyes wide open,

31:56

understanding the rules and that. Goes.

31:59

For anyway as the for three be. Or.

32:01

Any other type of workplace retirement plan.

32:04

Don't. Just throw money in it

32:06

without understanding. your options are

32:08

taking money out, the tax

32:10

consequences, etc. Expect. Up My

32:12

name is Dan. My question was on

32:14

how you guys determine when you say

32:16

that a company has allowed. That was

32:18

it does not much the how do

32:21

you determine that Thank you. Well.

32:23

The amount of debt is going to

32:25

be in relation to the cash flow

32:27

the business, the earnings of the business.

32:30

So. It's all relative. what a

32:32

lot is and what a little

32:34

is. Ah, we are. We have

32:37

a lot of data tools factset,

32:39

etc. That. We can look at.

32:42

The. Numbers aggregate in total but also

32:44

we can even dig down to what

32:46

that they have with different banks right

32:48

with the revolving credit line as well

32:51

as. Their. Bond. They have

32:53

outstanding Er et cetera. so. I

32:56

a depends on what's. A.

32:59

Owes a lot a way that we could. We can see that.

33:01

Now. You as a novice industry, not really

33:03

going to have access to that data. Olympic

33:06

and suddenly download the reports their, their earnings

33:08

reports in their balance sheet and into the

33:10

now says themselves during the weekend. Yeah, and

33:12

it's also important to note that it's not

33:14

just watch that they have but the maturity

33:16

level that that when it's going to mature

33:18

rather go in our to companies one having

33:20

sixty billion dollars do all else equal five

33:23

years from now and the other ones push

33:25

it out thirty years. Those debt levels are

33:27

not the same as Arms Gaffer. All it

33:29

for likely Harrys Straits is a lot going

33:31

on and so taking a look at Total

33:33

That is important. One thing that we look.

33:35

At it we mention of frequencies, interest rate

33:37

coverage ratios of taking a look at how

33:39

your actual profits are able to pay off

33:41

your debt how leveraged are you is important,

33:43

but having them a lesson here is it.

33:45

It certainly is all relative because is more

33:48

factors that go into it than just one

33:50

number. Of all time he might

33:52

see long term debt that that that's

33:54

a when you're out or further and

33:56

then you might have your. Current.

33:58

were called current debt And that is

34:00

anything that's due within the next year. But

34:03

long-term could mean, as Luke said, could mean 18

34:06

months it matures or 18 years.

34:09

It just depends on the company and how long

34:11

they've termed out their debt. And that's one thing

34:14

that's happening right now. Just

34:16

a side note here is everyone's talking about

34:18

higher interest rates and how that's going to impact the

34:21

economy in these companies. Well, a

34:23

lot of, especially the bigger companies, they've termed

34:25

out their debt at the bottom.

34:27

When they say term out, meaning

34:29

they're issuing debts that's going

34:31

out 10, 15, 20 years, especially because

34:33

they were smart. They were getting, Apple was getting,

34:36

being able to borrow it 2% plus

34:38

for a time. So

34:41

they were smart to do that over a very extended

34:43

period of time. So it's very important

34:46

not just to look at the total

34:48

amount of debt, but as Luke said,

34:50

the duration that that debt typically has

34:52

on average. Thanks for the call. In

34:54

best stock, I got a question for

34:56

you guys looking to see if you

34:58

could give some feedback on whether when

35:01

you purchase options, the fee that

35:03

goes into the contract

35:05

to your brokerage, does

35:08

that count towards your capital gains?

35:11

And so essentially like, you know, if you bought one

35:13

contract and it was 65 cents, you get

35:16

pay your brokerage to that 65 cents get removed

35:19

from the capital gains, or you pay in taxes

35:21

on your full profit with

35:23

that not being factored in. It

35:26

looks like when you do purchase it, it does

35:28

give you a max profit potential. And it looks

35:30

like it factors in that contract price. But

35:33

I was just curious because if you start trading options

35:35

and you buy, you know, for example, 80 contracts,

35:38

then it becomes kind of expensive. And I

35:40

feel like that's factored into that trade

35:42

decision. So I know it's kind

35:44

of a tax question, but if you guys have some insight

35:46

on that, that would be awesome. Thanks guys. Bye.

35:49

So for example, yeah, it's going to count

35:52

towards your cost basis and

35:54

the cost of investing.

35:56

So yeah, that is

35:58

something you can write Off. In

36:00

your financial gain And so.

36:03

While the system might not, Account

36:06

for it. Back. Your

36:08

the cat person shit and the the

36:10

my their life you've are used to

36:12

the death rate veered, he's betrayed options,

36:14

trader equities, pay some sort of commission,

36:17

A ticket now young do that, but on

36:19

options I still do and that certainly counts

36:21

towards your torture cost basis. Just. Had

36:24

a question about what you might rak

36:26

a man from an investment strategy for

36:28

somebody who's gonna retire. So. Looking.

36:31

To invest the money I just

36:33

I was able to come by

36:36

and looking to see what makes

36:38

sense vs investing and upon ladders

36:40

I would hold on suggests the

36:43

current sharp interest vs doing some

36:45

of the tip it out type

36:47

stocks maybe from the aristocratic so

36:50

typo thought strategies and whether or

36:52

not you would act one of

36:54

these over the other or whether

36:57

you might recommend doing both and

36:59

I what the distribution. With. Mp A

37:01

fifty fifty or one question. I recommend. Again,

37:04

thanks forbidding you guys do and I'll

37:06

listen. I love podcast already answered great

37:09

question and oh I'll give you what

37:11

our experiences with most of our clients

37:13

who are p retirees retirees is a

37:15

little bit about now. A lot depends

37:17

on your risk tolerance level depends on

37:20

your goals and that's the difficult part

37:22

year I don't know what's your what

37:24

your expenses either will we do for

37:26

clients is build broader financial plans understanding

37:29

what your income levels are. you have

37:31

a penchant many tix when when when

37:33

she takes. Or security. What's your expenses

37:35

are How much were drafted value? What

37:37

kind of yields can you get from

37:39

that portfolio? And. Maybe.

37:42

Bonds is enough. doing us to a shorter

37:44

term bomb. latter. That's kind of what we're

37:46

we're focused on for most for clients now

37:48

face on a fixed income sides. Maybe that's

37:50

enough? Or. Maybe not typically

37:52

inflationary, Byron it's. Fox. do

37:55

better than bonds and so you probably do want

37:57

some level stock the most of our client are

37:59

in what is called our balanced income strategy, which

38:02

is anywhere from 60, 40 stocks

38:05

bonds. Sometimes it flips, sometimes it's 60% bonds, and it's

38:07

40% stocks, etc. But that is

38:12

it depends on the environment, depends on where yields

38:14

are, depends on where valuations are, etc. But that's

38:16

typically what most clients are in. So a little

38:19

bit of both the bond ladder, as well as

38:21

given in paying stocks. But once again,

38:23

you didn't give me enough information, frankly,

38:25

you couldn't on a call, I need

38:27

to do kind of a full plan.

38:29

So all those are going to be

38:31

factors, your risk tolerance level, your goals,

38:33

your income, your expenses, etc. So

38:37

if you want to schedule portfolio review, these are

38:39

things kind of we dig into a little deeper,

38:41

help you understand a little further.

38:43

And that's probably what I recommend,

38:45

because I can't give you the

38:47

right answer. Because frankly, I don't

38:49

have a complete picture. Let's

38:53

go to Cliff and LaMesa. How you doing, Cliff?

38:55

Hey, good, Steve. Thanks for taking my call. Appreciate

38:57

you calling. Could you answer a question on dividends

38:59

for me? On the X day,

39:01

which is like what, two or three weeks before

39:03

they actually pay the dividend? Yes. If you own the

39:05

stock on the X day, say you own it the

39:08

day before, and the day after

39:10

that day, you sell it, would you still

39:12

get the dividend? Yes. Long as you

39:14

own the stock on the X dividend

39:16

date, and that's the date they announce,

39:19

all people who own the stock today will

39:21

get a 15 cent dividend

39:23

when we pay it a few weeks from

39:25

now. So that's the day you need to

39:27

own it. You can sell it the very

39:30

next day, not a problem. And you might

39:32

be even able to sell it that day,

39:34

but I wouldn't take that chance. That

39:36

sounds good. So everybody, whenever you hear, well,

39:39

the X dividend day, they call it X

39:41

dividend day, EX dividend date. That's

39:43

the day you have to own the stock

39:45

to get the announced dividend they're going to

39:47

announce on that day. Now,

39:49

mind you, the stock goes down the

39:52

exact amount of the dividend they're going

39:54

to pay the stock. The dividend is going to be 50

39:56

cents. The stock price that day will

39:59

go down. 50 cents. Now

40:01

it might be disguised because trading up

40:03

and down, up and down, but now

40:05

might not see it, but it actually

40:07

does go down the exact amount of

40:09

the dividend announced on that ex-dividend date.

40:20

You are listening to an

40:22

Invest Talk test of caller

40:24

questions population program. Your comments

40:27

and questions are always welcome.

40:29

Call anytime 888-99-SHART. That's 888-99-CHART.

40:38

Hi Justin and Steve. My name is

40:40

Jacob from Arizona. I'm a pretty young

40:42

investor. I just had a

40:44

few questions for you guys. I do

40:46

have a lot of money kind of sitting in the bank,

40:48

which I do not like as I know that money

40:51

sitting in the bank doesn't really do

40:53

anything for you, especially when you're young.

40:55

So I guess I have some questions

40:57

here regarding the markets. Do you guys

40:59

suggest, I guess, playing it safer and

41:01

allocating more of my portfolio towards ETFs

41:03

and things, or should I kind of

41:05

play it more risky? What are the

41:07

best options that you guys would give

41:09

a young investor here? I appreciate all

41:11

your information you guys give out and

41:13

I look forward to the answer in

41:15

the podcast. Thank you. Have a great

41:17

day. So first and

41:19

foremost, you are young. You

41:23

have a long time to invest, which means

41:25

you have the ability to take on a lot of

41:27

risk if you're saving for retirement because you

41:29

don't need that money down the road. But

41:32

given you're new to investing, I

41:34

absolutely think you should start off with ETFs. I'm

41:36

personally of the opinion that in

41:39

times of heightened volatility, higher

41:41

interest rates, non-free money, active

41:44

management can provide excess

41:46

returns. But I don't

41:50

think you have the expertise to do that at this

41:52

stage. A lot of people never get that expertise. And

41:55

so ETFs are a great way to get exposure

41:57

to equity returns, something you should be heavily focused on.

42:00

invested in at your age and

42:02

is a great place to start to

42:04

learn about the dynamics of liquidity, the

42:06

dynamics of supply and demand, how markets

42:09

work. Educate yourself and then maybe

42:11

you can take on some of the

42:13

more difficult challenging aspects of

42:15

the market. Thanks, Nicole. A

42:20

quick reminder if there's a term that you hear

42:22

mentioned on the program but you're unclear about what

42:24

it means or you have a question about it,

42:27

we want you to ask. It's

42:29

very likely that you're not the only one

42:32

with that same question. 888-99 chart. Let's go

42:34

to James in

42:36

New York and he was talking about interest

42:39

rates. Yeah, I just wanted to know I

42:41

have a sizable amount of money in a

42:43

bank account, just a traditional bank account, and

42:45

I was wondering I did not want to

42:47

expose it to market fluctuations.

42:50

I was hoping that I

42:52

might just make an investment if I want to use that

42:54

money. It's not going to fluctuate up and

42:57

down too much so that's kind of what I was looking

42:59

to do. Is there anything

43:01

you might recommend for that, like a short-term

43:03

fixed income bond or anything of that nature?

43:05

I would like to avoid CDs. I would

43:08

say the best thing and this

43:10

is what I use with my

43:12

very short-term cash. Obviously, I don't have a lot

43:14

of it but I

43:16

use a high-yield James account. Marcus,

43:19

my Goldman Sachs is the one that I use,

43:21

get half a percent. It's not great. Once again, I

43:23

don't have a ton of money in there just because

43:25

it's not something that I want to, I

43:27

can do much better in the markets with my

43:30

expertise but it's always good to have a small

43:32

amount in the emergency savings like you said and

43:35

that's not going to fluctuate. It's FDIC

43:37

insured, etc. That's probably the best

43:39

way you can go. I know it doesn't

43:41

sound very appetizing. It isn't very appetizing but

43:43

that's the world we live in and if

43:46

you want safety and you don't want CDs

43:48

and even CDs are not going to get

43:50

much more than that anyway, I think

43:52

your liquidity there, your safety and at

43:54

least something of yield better than the

43:56

0.01%. I know JP Morgan, so

43:59

they've been on their savings accounts because

44:01

they don't need more deposits. So they have no

44:03

reason to attract it. But that's what you're getting

44:05

over at Marcus. But there are other ones. There

44:07

are definitely other high yield savings accounts. Maybe there's

44:10

a few that are a little bit more as

44:12

well. You can shop for those around on the

44:14

internet and just make sure that they're FDIC insured

44:16

and they are reputable. Hi

44:18

guys, Lee from North Carolina here.

44:20

I have a question for you

44:22

about the financial industry as a

44:24

business. I have been

44:26

managing mine and my wife's retirement

44:28

accounts for a couple of years now

44:31

and I've decided to start studying

44:33

to take my Series 65 exam,

44:35

planning on taking that over the

44:37

summer. Just curious as to

44:39

what will be the best

44:41

line of action after I pass the Series 65.

44:45

Would you recommend trying to start my own investment

44:48

advisor firm or try to find

44:50

an established firm to become an

44:52

investment advisor representative?

44:55

Or what would you recommend for someone

44:57

like me that's looking to venture

45:00

out into the investment advisor business?

45:02

Thanks, looking forward to hearing the answers. Great

45:05

question. There's definitely a lot of routes

45:07

to go. It's been

45:09

many years. I passed my Series 65 when I

45:11

was 19 or 20, I believe. So

45:16

I was pretty young. And

45:18

luckily, I have my grandfather as my

45:20

mentor, founder of KP Financial. That

45:24

helps a lot, is to really have a mentor. I

45:28

would try to find a smaller firm and

45:31

a mentor that really can

45:33

show you the ropes of the industry,

45:35

the pros and cons, manage

45:38

around the trends of

45:41

indexing, which makes our business

45:43

tougher, frankly. I

45:46

would look for a smaller firm that

45:49

has a mentor and then you can maybe grow into

45:51

being a partner

45:54

or maybe break out on your own. But a

45:56

larger firm, you're probably not going to get quite

45:58

the exposure, the experience. you really need,

46:01

look for a smaller firm with

46:03

a great mentor. Investalk is a trademark

46:05

of KPP Financial because of the nature

46:07

of the interactive dialogue inherent in the

46:10

format of this program. It's important for

46:12

the listener to understand that not all

46:14

comments made will apply to them. Specifically,

46:16

nothing said shall be taken to be

46:19

investment advice or shall statements on this

46:21

program be considered an offer to buy

46:23

or sell security. Because such advice is

46:26

rendered solely on an individual basis and

46:28

at times will require that the investor

46:30

review a prospectus before investing. Investalk

46:32

is a copyrighted program of Klein,

46:35

Pavlis and Peasley Financial, a registered

46:37

investment advisor firm which retains all

46:39

rights. For more information regarding KPP's

46:42

investment advisors call 1-800-557-5461. Steve Peasley

46:44

is president and Justin Klein

46:51

is chief executive officer of Klein,

46:53

Pavlis and Peasley Financial. Thank

46:55

you for listening and your comments and questions are

46:58

welcome on our 24-hour listener line

47:00

at 888-99 chart. You

47:17

really need, look for a smaller firm with

47:20

a great mentor. Investalk is a trademark

47:22

of KPP Financial. Because of the nature

47:25

of the interactive dialogue inherent in the

47:27

format of this program, it's important for

47:29

the listener to understand that not all

47:31

comments made will apply to them. Specifically,

47:34

nothing said shall be taken to be

47:36

investment advice or shall statements on this

47:38

program be considered an offer to buy

47:41

or sell security. Because such advice is

47:43

rendered solely on an individual basis and

47:45

at times will require that the investor

47:47

review a prospectus before investing.

47:50

Investalk is a copyrighted program

47:52

of Klein, Pavlis and Peasley

47:54

Financial, a registered investment advisor

47:56

firm which retains all rights.

47:58

For more information regarding KPP's

48:00

investment advisors call 1-800-557-5461. Steve

48:06

Peasley is president and Justin Klein

48:08

is chief executive officer of Klein,

48:10

Pavlis and Peasley Financial. Thank

48:13

you for listening and your comments and

48:15

questions are welcome on our 24-hour listener

48:17

line at 888-99 chart.