[SPEAKER_00]: Joining me now is one of the top financial experts in America.
[SPEAKER_00]: He is all over the media and the reason is because he is usually right.
[SPEAKER_00]: Welcome to the show, Ken Mahoney for Mahoney Acid Management.
[SPEAKER_01]: Thank you for that great introduction.
[SPEAKER_01]: We hope to be right, more than we're wrong.
[SPEAKER_01]: And of course, it's always hard to go by the crystal ball, but there's definitely trends in historical things.
[SPEAKER_01]: You apply to help you kind of figure out where the hockey pup may be going.
[SPEAKER_00]: Yes, let's dive right into it.
[SPEAKER_00]: Is there a bubble in the market right now?
[SPEAKER_00]: How do you see it?
[SPEAKER_01]: I don't think so.
[SPEAKER_01]: You know, Nigel, there's a lot of bubble I'll just out there that keep talking about bubbles, bubble bubbles.
[SPEAKER_01]: You know, we're in this great growth spark.
[SPEAKER_01]: Something we haven't seen in a generation.
[SPEAKER_01]: Since the 1990s when everybody went out and got computers, this AI data centers.
[SPEAKER_01]: cloud robotics.
[SPEAKER_01]: I mean cars that run on electric.
[SPEAKER_01]: It's all coming at us.
[SPEAKER_01]: And there's a lot of winners out there that are stacking on earnings and earnings.
[SPEAKER_01]: And look, when you have strong earnings, a lot of good things happen for companies.
[SPEAKER_01]: They buy back stock, they raise your dividend, they bring on new talent, research development.
[SPEAKER_01]: So we're seeing such a huge amount of spend,
[SPEAKER_01]: how much money you want to innovation, you know, innovation drives investment, investment drives innovation, and that's where we are.
[SPEAKER_01]: We are not in the bubble yet.
[SPEAKER_00]: How does it market compare, let's say, to the 90s?
[SPEAKER_01]: So I think it's much better.
[SPEAKER_01]: So I remember 1990s, we would get our first computer.
[SPEAKER_01]: My first computer was Gateway, we came in a cow box.
[SPEAKER_01]: And I'll remember that.
[SPEAKER_01]: And so those business to consumer.
[SPEAKER_01]: So I bought my printer, I bought my computer for $1500.
[SPEAKER_01]: But while those companies back in 1990s got evaluated for clicks, for eyeballs, not for revenue.
[SPEAKER_01]: What we're seeing here now is business the business.
[SPEAKER_01]: Now, business the consumer, like we were in the 90s, business the business 10 billion dollar contract, a 30 billion dollar contract, and 50 billion dollars to get it.
[SPEAKER_01]: So, this is not like the 1990s value rating companies and how many hits they got for the month.
[SPEAKER_01]: These are value rating companies right now on the earnings they have, projected earnings, and a creative deals that they're getting on top of all that.
[SPEAKER_01]: So, it's a totally different time in place.
[SPEAKER_00]: the market is anticipating the reopening of the government.
[SPEAKER_00]: Your thoughts on that?
[SPEAKER_01]: Yes.
[SPEAKER_01]: Finally, I think in a future, all members of Congress should not get paid alone with everyone.
[SPEAKER_01]: Say, air traffic patrols can't get paid.
[SPEAKER_01]: The members of Congress, I don't want to rent about that.
[SPEAKER_01]: But, look, it's just about time because pretty soon the holidays are coming up.
[SPEAKER_01]: Thanksgiving's the biggest travel week of the year, and it couldn't happen quick enough.
[SPEAKER_01]: Again, now things are still kind of off a little bit when not getting all the data from the government.
[SPEAKER_01]: Um, not sure the Federal Reserve is going to cut rates and to have enough data to make that decision.
[SPEAKER_01]: There's going to be some bottlenecks, there's some collateral damage I happen with this, but we'll get through it.
[SPEAKER_01]: It's just a, it was really uncalled for and most investors are not sided with one party.
[SPEAKER_01]: They're really dismayed by both sides on this particular issue.
[SPEAKER_00]: How are you generally guiding your clients through times like that?
[SPEAKER_00]: I mean, you need to be prepared always for the unforeseen.
[SPEAKER_00]: Are your clients the one that's calling you in panic mode?
[SPEAKER_00]: How are you navigating through it?
[SPEAKER_01]: Yeah, good question.
[SPEAKER_01]: Look, there's a lot of emotion that comes in investing.
[SPEAKER_01]: It's not just numbers and logic, but I guess been doing this 36 years, a lot of our clients with this alone time, they know the markets have cycles.
[SPEAKER_01]: And we prepare for it.
[SPEAKER_01]: We can make volatility or friend, but we can make volatility or foe.
[SPEAKER_01]: And I don't have time to go through all this.
[SPEAKER_01]: We don't have time to go through.
[SPEAKER_01]: All the strategy, but when the market goes up a parabolic like it did it's past summer, you take some ships off the table because you know eventually that escalator right up results an elevator going down at some point.
[SPEAKER_01]: And so when the elevator goes down, if you have money on a sideline that you park because of some earlier gains, you can then participate.
[SPEAKER_01]: You can then grow out and buy.
[SPEAKER_01]: So again, you should never be 100% in the market.
[SPEAKER_01]: there's no flexibility in the market and again we know we go through cycles and prepare for it and again I said make about so that your friend not your phone.
[SPEAKER_00]: You were one of the first I listened to with regards to your companies that you liked.
[SPEAKER_00]: I remember in the video I was one of them.
[SPEAKER_00]: So what companies do you like right now that maybe is not on everybody's radar?
[SPEAKER_01]: Right.
[SPEAKER_01]: So in the video, Microsoft, again, monopoly board game, now that we call that boardwalk and park place.
[SPEAKER_01]: Those are the two you really want to own in this AI.
[SPEAKER_01]: They're the picture's shovels.
[SPEAKER_01]: And we caught those pretty early, thank God.
[SPEAKER_01]: Now, I think in 2026, 25, no doubt was AI and data spend and all of the things that are happening and so much money being thrown in technology, I think 2026 is going to take a leap forward and say, wait, what are those companies?
[SPEAKER_01]: that spent all those tens of billions of dollars to bring down expenses, to raise the revenue.
[SPEAKER_01]: So we're going to try to find copies, even like Walmart, and let's borrow especially a more growth manager that likes to be in the left lane, the fast lane, so why Walmart?
[SPEAKER_01]: You know, the new technology they have is going to help out logistics.
[SPEAKER_01]: inventory.
[SPEAKER_01]: I mean for a massive company like Walmart, a 1% change moved to Neil.
[SPEAKER_01]: So we're going to find more coverage in 2022 that made that investment in 2024 and 25, that are now going to start seeing results.
[SPEAKER_01]: Walmart is just one example of a company that can really thrive by having this data.
[SPEAKER_00]: Is that also thanks to their drone deliveries?
[SPEAKER_01]: I'm not sure about that yet.
[SPEAKER_01]: I think it's kind of cute.
[SPEAKER_01]: I don't know whether it's going to help.
[SPEAKER_01]: I really drone deliveries.
[SPEAKER_01]: I think it really helps when we have these awful hurricanes or awful earthquakes and get medical supplies.
[SPEAKER_01]: I think it's a great use of that.
[SPEAKER_01]: No, I don't think so.
[SPEAKER_01]: I don't think the drone businesses are going to be that big of a business.
[SPEAKER_01]: That could be wrong.
[SPEAKER_01]: But I think we're going to find those companies who may that investment start again, return on that investment and that should be in 2026 and beyond.
[SPEAKER_00]: And let's talk a little bit about the current administration.
[SPEAKER_00]: Trump is promoting himself always as the big pro business president.
[SPEAKER_00]: And that's also how he's perceived by many.
[SPEAKER_00]: And how do you feel about the administration helping business?
[SPEAKER_01]: Right, in a big, big way.
[SPEAKER_01]: First off, deregulation.
[SPEAKER_01]: I felt the last administration had too many hoops, too many boxes to check.
[SPEAKER_01]: Most companies had spent a lot of money on legal and trying to make sure they're doing the plot of the day.
[SPEAKER_01]: So we've had pro-business presidents throughout time.
[SPEAKER_01]: Quite a few of them, flat matter.
[SPEAKER_01]: This president is unlike any other.
[SPEAKER_01]: He's actually going to countries, cutting deals for our U.S. companies.
[SPEAKER_01]: And remember, capital is going to go where it's treated the best.
[SPEAKER_01]: I just came back from Europe and I can tell you with 50% tax rates, VAT taxes from 10 to 20% all kinds of red tape, it's not investable.
[SPEAKER_01]: And now you're starting to see this pendulum swing that U.S. is welcoming.
[SPEAKER_01]: Again, if capital is going to go where it's best treated, it's going to be best treated here in the U.S. And we're finding these deals.
[SPEAKER_01]: Again, look, he's making a volatility great again.
[SPEAKER_01]: That's understand.
[SPEAKER_01]: The press conference is always gives her a curveball, fighting with China over trade as hard companies like the video note, ultra-makers, but make no mistake.
[SPEAKER_01]: I've never seen this in 36 years.
[SPEAKER_01]: A president going out to different countries to bring back deals for U.S. companies.
[SPEAKER_01]: So again, I think that you think about it, U.S. we innovate.
[SPEAKER_01]: China, they duplicate.
[SPEAKER_01]: They take money.
[SPEAKER_01]: And unfortunately, Europe lately, and what they do, they legislate.
[SPEAKER_01]: They put too many handcuffs on it.
[SPEAKER_01]: So I feel that's why we're seeing so much money flow into the United States because of that, the way it's treated, couples treat a very kind here in the States.
[SPEAKER_00]: Yeah, I mean, he's going to the countries, he is presenting deals.
[SPEAKER_00]: He's bringing home deals and even a crown.
[SPEAKER_00]: Is he the king of business?
[SPEAKER_01]: Is he the king of business?
[SPEAKER_01]: Yes, I mean, look, he's got great negotiation skills.
[SPEAKER_01]: It's just amazing that, look, the president is telling in the administration, we're not to invest
[SPEAKER_01]: and where to invest.
[SPEAKER_01]: We're not to invest.
[SPEAKER_01]: At the moment, pharmaceutical companies, right?
[SPEAKER_01]: He's come in and trying to find ways to lower prices, which is good, but it's going to hurt their earnings.
[SPEAKER_01]: Food companies, they have a target on their back edge, you know, for many, many years with kind of red dye, blue dyes, those, you know, so basically do not, those areas, I would not want to invest into the administration made it clear that they have a target in the back.
[SPEAKER_01]: he wants to win the AI race, okay?
[SPEAKER_01]: So people should listen very closely because political cycles, economic cycles, market cycles happen.
[SPEAKER_01]: This political cycle, you're finding that this U.S. won the major goals is the win the AI war, pretty much all China.
[SPEAKER_01]: And so that those companies are going to benefit from less regulation.
[SPEAKER_01]: They're going to benefit from investment from foreign companies and countries.
[SPEAKER_01]: So this is why we're seeing this division.
[SPEAKER_01]: And for those who are trying to bet against it and sticking far up particular companies, it's going to be like in quicksand.
[SPEAKER_01]: And you're going to lose an opportunity clause.
[SPEAKER_01]: Yes, the left lane with AI, definitely bumpier for sure, but that's where you want to go.
[SPEAKER_01]: You want to go the administration, it's printing officers and investment, and that's clearly the AI race that he stole once the one.
[SPEAKER_00]: We talk about AI.
[SPEAKER_00]: There's the big discussion about AI with a right intent because if we don't make AI care about us, it may forget that we matter.
[SPEAKER_00]: As human beings now, it seems like in America there are many dynamics that are about AI for good.
[SPEAKER_00]: And the global AI council is also very much on the forefront on that, but does China care about AI for good?
[SPEAKER_01]: China doesn't care about anything, intellectual property, they've been ripping us off for decades.
[SPEAKER_01]: I still remember years ago, Microsoft 95, and remember when those 95 get to this, factories in China, or places in China, would actually take that this and duplicate it and not give Microsoft money.
[SPEAKER_01]: So this has been going for a long time.
[SPEAKER_01]: The way that Trump is handling Xi and China, I think it's very interesting.
[SPEAKER_01]: The old saying, keep your friends close, keep your enemies closer.
[SPEAKER_01]: that's what we're doing here.
[SPEAKER_01]: So we'll never be able to play Kate China.
[SPEAKER_01]: They're still out for themselves.
[SPEAKER_01]: They're still never, you know, shake hands with them and you don't know whether the deal's going to go through or not.
[SPEAKER_01]: Trump knows that.
[SPEAKER_01]: I mean, but we can't poke it too much where we hurt the US.
[SPEAKER_01]: But at the end of the day, no doubt China is not a friend.
[SPEAKER_01]: If you think about that for a second,
[SPEAKER_01]: that Trump knows, keep your friends close, keep your enemies closer, and that's why they still have discussions, but it's not going to go too far in our opinion because China's always going to be there and they don't care about intellectual property, they don't care about ripping off a company or an individual that has the patent.
[SPEAKER_00]: So, overall, for you, definitely, it is a positive 2026, and you would say, go into the market, invest.
[SPEAKER_00]: It's an investor-friendly environment right now.
[SPEAKER_01]: insurers, you know, one thing we have to understand to the big picture is the Federal Reserve is cutting rates, and they may be cutting rates December 9th, December 10th, but that means as less competition for stock.
[SPEAKER_01]: So let's say interest rate for 10 percent, why would you want to be a stock market?
[SPEAKER_01]: But the rates are coming down.
[SPEAKER_01]: We're the same multiple of the expanders.
[SPEAKER_01]: I mean prices generally go up in an environment which interest rates are coming
[SPEAKER_01]: and technology, and this administration's doing, favoring another tailwind you can add for investors.
[SPEAKER_01]: This definitely, these federal reserve radcuts, which probably lasts in through 2026.
[SPEAKER_01]: So, hey, I think we have a lot of tailwinds.
[SPEAKER_01]: Markets are bumpy, nothing goes straight up.
[SPEAKER_01]: There'll be some nasty corrections, especially around AI because it goes way, way up, and then it comes down.
[SPEAKER_01]: But again, you can invest outside the AI.
[SPEAKER_01]: Findless companies that are incorporating AI as we mentioned before.
[SPEAKER_01]: We'll also understand the Federal Reserve's cutting rates.
[SPEAKER_01]: And that's usually called a risk environment.
[SPEAKER_00]: Last but not least, digital assets.
[SPEAKER_00]: Where do you stand on crypto?
[SPEAKER_01]: I'm not a big fan, like, I feel like, again, first of Bitcoin can go to million and I'll probably wrong.
[SPEAKER_01]: But again, I will see it as a currency is when I can go to Best Buy or I can go to Barnes and Noble in my two favorite stores and take my wallet out and pay for.
[SPEAKER_01]: You can't do that yet, right?
[SPEAKER_01]: And then when you start breaking down and say stock like Microsoft, you know, that game in Xbox, Microsoft teams, Windows, you know, everything, you know, over a billion licenses out there, I like businesses like that.
[SPEAKER_01]: I can understand the cash flow.
[SPEAKER_01]: Sometimes, you know, people tell me the reason why you want to be in Bitcoin is you can transfer money.
[SPEAKER_01]: Well, I can do that with Zell.
[SPEAKER_01]: I could do that with Paypal.
[SPEAKER_01]: I could do that.
[SPEAKER_01]: Also, the real reason why I buy Bitcoin is hope that someone's going to buy at a higher price than my pay for it.
[SPEAKER_01]: So you kind of lose me now.
[SPEAKER_01]: Now there's a whole bunch of coins.
[SPEAKER_01]: Don't get to a whole ramp where I feel they're just a modern day pyramid scheme that, you know, there's no real base behind it.
[SPEAKER_01]: Yes, I get a lot of hate mail on my Twitter and my ABC stuff at things, but I'd rather go with companies that have this great revenue, have this great tailwind because of the Federal Reserve's cutting rates and administrations, pro business and all these companies are lining up because they need all these, all this equipment.
[SPEAKER_01]: I'd rather be there than in something that feels so manipulative, especially the smaller coins, which I believe are just pyramid schemes.
[SPEAKER_00]: I would be kind of the proponents argue, at least we know exactly how many exist.
[SPEAKER_00]: The factor in that many people also lose their password, so the supply is shrinking, that demand probably increasing.
[SPEAKER_01]: So it's just not our cup of tea.
[SPEAKER_01]: Again, we work with clients in their near-and-retirement.
[SPEAKER_01]: If someone puts three percent of the five percent of portfolio in crypto, I wouldn't have a big problem with that.
[SPEAKER_01]: But it's all used in most investors, oh, and non-rights, especially the younger generation, the Gen Z, you know, where they have like 80 percent of cryptos and maybe 20 percent and Apple stock.
[SPEAKER_01]: So again, someone say, hey, in May, nor do I say, hey, I have a 5% of portfolio, fine.
[SPEAKER_01]: That's not going to, you know, have just start over and life and savings again.
[SPEAKER_01]: But remember, most investors do things in big chunks.
[SPEAKER_01]: So that's why I cross some people about.
[SPEAKER_01]: So a 5% allocation, no big deal.
[SPEAKER_01]: And 80% allocation in crypto, big problem, I think.
[SPEAKER_00]: Sounds plausible.
[SPEAKER_00]: I cannot wait to have you back next time with your son because you two of the fantastic show going on.
[SPEAKER_00]: Generation X and Generation Z, Connor and you your fantastic team.
[SPEAKER_00]: I think you're the only father's son team that are talking money.
[SPEAKER_01]: Barton here about it, and we enjoy it, it's almost like listening to us during the day.
[SPEAKER_01]: The market closes, we go over different things, and it also we try to capture that, you know, our interaction.
[SPEAKER_01]: And again, you're right, the different generations.
[SPEAKER_01]: Again, college generation, Gen Z, yeah, they probably have more than half of the money and cryptos, different coefficients and stuff like that.
[SPEAKER_01]: My generation X on a Cusp of Baby Boomers, you know, we like things are more tangible, things that we understand.
[SPEAKER_01]: I would hate to know that I have these cryptos and I can't get to my wallet and I have lost that money, which can happen.
[SPEAKER_01]: We're a little bit, but it's nice to have different opinions, and that's why I think our shows are so popular, commoner than I call them, the whole need.
[SPEAKER_01]: Ken Mohn, you're so popular these shows, because he's living in the Gen Z, I'm living in Gen X, and there's different answers for the different, you know, for the different segments.
[SPEAKER_00]: with different parts and all lives, different perspectives and different priorities.
[SPEAKER_00]: I think it's always fantastic to hear.
[SPEAKER_01]: Yeah, I've learned from him, he learned from me and vice versa, yeah.
[SPEAKER_00]: Compliments each other very well.
[SPEAKER_00]: Fantastic talking to you, Ken.
[SPEAKER_00]: And join us again soon.
[SPEAKER_01]: Great, it's all a great question.
[SPEAKER_01]: Yes, thank you.
[SPEAKER_00]: No, with Connor together, Ken, wait.
[SPEAKER_00]: And I'll keep following you at vice.
[SPEAKER_00]: Thank you so much for joining us today.
[SPEAKER_00]: And join us again next time.