[SPEAKER_03]: This is Invest Talk, from KPP Financial, helping investors make sense of the markets one day at a time.
[SPEAKER_03]: Here's your host, Justin Klein.
[SPEAKER_01]: Good afternoon, fellow investors, and welcome back to Invest Talk.
[SPEAKER_01]: This is our Monday, June 15th, 2026 edition, and what a start to the week it was,
[SPEAKER_01]: We have what looks to be finally after a lot of fall starts on a resolution in Iran.
[SPEAKER_01]: You know, it's still somewhat up in the air, but at least more details are.
[SPEAKER_01]: In place for now, we'll see if that holds, but ultimately the market reacted to it and moved higher.
[SPEAKER_01]: So we'll see how once again this evolves throughout the week, is there a fall through to the upside or not, and we know that's this all.
[SPEAKER_01]: Happens with a backdrop of a new fed chair AI.
[SPEAKER_01]: market disruption new IPOs that are coming out with SpaceX last week and more and more coming in the coming months as well.
[SPEAKER_01]: So a lot of moving parts in this market.
[SPEAKER_01]: So always something to discuss.
[SPEAKER_01]: And our job is to help unpack it for you.
[SPEAKER_01]: Separate the signal from the noise.
[SPEAKER_01]: There's a lot of noise out there in the in the age of social media,
[SPEAKER_01]: You definitely have to be careful what you focus on because easy to get distracted and our job is to refocus you on the right thing.
[SPEAKER_01]: So that's what this hour is about and I will do that by bringing you topics that are important but I think are important to you, to me, we're managing client assets, et cetera, most importantly
[SPEAKER_01]: So whatever's on your mind, we would love to hear from you.
[SPEAKER_01]: 24 hours a day, seven days a week.
[SPEAKER_01]: Now here's heads up.
[SPEAKER_01]: Our next Wealth webinar is set for Tuesday, June 30th, from 12 to 1 PM Pacific Time.
[SPEAKER_01]: So just about two weeks away, the title is Beyond The Yield, how to invest for your income needs in just a bit.
[SPEAKER_01]: We'll talk about your, talk about the market performance and run down the show topics.
[SPEAKER_01]: But first, let's tackle this color question now.
[SPEAKER_04]: I'm just calling to get your thoughts on Amazon, I'm just wondering, is this something I can put some money into and hold it for 20 plus years and we'll do pretty well on.
[SPEAKER_04]: Thanks.
[SPEAKER_01]: This is a great question.
[SPEAKER_01]: For years, it was about blue chips stocks.
[SPEAKER_01]: Technology didn't change much up until the 90s.
[SPEAKER_01]: and then things moved rapidly from there, once the internet hit the world.
[SPEAKER_01]: So just go look back at the big names in the early 90s, shall we say?
[SPEAKER_01]: They weren't the big names a decade on because then it was the tech names, the Microsoft's eventually the apples of the world Amazon, which you're calling about, et cetera.
[SPEAKER_01]: But over time, those big technology names have had a wild volatility from the likes of Blackberry, remember Blackberry being the king of smartphones.
[SPEAKER_01]: And then suddenly it wasn't.
[SPEAKER_01]: Apple took a shine and rose to prominence.
[SPEAKER_01]: You had names like Meta that moved into the Metaverse
[SPEAKER_01]: Percent from a size, something like that, and then rebound it.
[SPEAKER_01]: But what the shows you is that no tech name in my mind is a whole of for 20 year type of investment.
[SPEAKER_01]: Because the industry changes so rapidly, especially in this new era of AI.
[SPEAKER_01]: Think about your shopping experience.
[SPEAKER_01]: It's really easy.
[SPEAKER_01]: I use Amazon, I want to buy something.
[SPEAKER_01]: Certainly might go to for more everyday things.
[SPEAKER_01]: But as a Gentic AI takes over, you very well could have your own agent that goes out there and doesn't just go to Amazon.
[SPEAKER_01]: It goes all around the internet and finds the best price, the best product with the best ratings, of the best price that would get to you in time for whatever your time frame is.
[SPEAKER_01]: Meaning, maybe you talk to Siri, probably a better version of Siri, but could be Siri on your iPhone, or maybe the Google version, or whatever.
[SPEAKER_01]: And it will, once again, do all the work for you.
[SPEAKER_01]: You just tell it, it's parameters.
[SPEAKER_01]: I want to make sure it has this rating.
[SPEAKER_01]: I want to make sure it's under this price.
[SPEAKER_01]: So I want to make sure it has these features.
[SPEAKER_01]: I want to make sure it gets to me by this date.
[SPEAKER_01]: And the agent will go to all of it, check out and buy it.
[SPEAKER_01]: You won't have to do anything.
[SPEAKER_01]: So it would be even easier than Amazon today.
[SPEAKER_01]: I think that is eventually the future.
[SPEAKER_01]: Now is that next year, five years, 10 years down the line, we'll see.
[SPEAKER_01]: But clearly, there are risks to an Amazon business model.
[SPEAKER_01]: Now maybe they successfully transition and the even that happens, but they move even more into AWS and they're more competitive in that space and supporting the AI stack.
[SPEAKER_01]: That certainly could be a path forward.
[SPEAKER_01]: So there's a lot of ways that this can go right, but certainly many ways it can go wrong.
[SPEAKER_01]: So that's why I don't say Amazon is a buy hold for 20 plus years.
[SPEAKER_01]: You put it in the drawer and forget about it.
[SPEAKER_01]: Because it's in an industry that is very easy.
[SPEAKER_01]: Now it's easy to disrupt, but often is disruptive.
[SPEAKER_01]: So I don't love it.
[SPEAKER_01]: I don't love it at these prices.
[SPEAKER_01]: I definitely think there's more room for multiple compression within the space.
[SPEAKER_01]: And therefore, I wouldn't be quick to be picking up Amazon at these prices.
[SPEAKER_01]: Thanks for the call.
[SPEAKER_01]: Now, with a great show on Friday, we looked into the story, the wealth effect paradox why rich consumers are spending big while markets wobble.
[SPEAKER_01]: We also answered a question on CSX Corp.
[SPEAKER_01]: It was submitted via our YouTube channel.
[SPEAKER_01]: And if you happen to miss it, go check it out.
[SPEAKER_01]: The best way to get every show is to follow a best talk wherever you get your podcasts.
[SPEAKER_01]: So we have a lot of ground in cover today.
[SPEAKER_01]: Next 45 minutes or so, time permitted.
[SPEAKER_01]: We'll get to all of it.
[SPEAKER_01]: Our main focus point concerns the story.
[SPEAKER_01]: Robotic stock.
[SPEAKER_01]: That's what we're talking about.
[SPEAKER_01]: And whether or not the AI will allow another level of automation to be implemented within different industry stacks.
[SPEAKER_01]: So we're gonna talk about that.
[SPEAKER_01]: We also have topics, other topics on the docket.
[SPEAKER_01]: One is China, China's gate prices are rising on their fastest rate in nearly four years.
[SPEAKER_01]: Why is that?
[SPEAKER_01]: And how is that going to feed into a flood inflation around the world, especially here, as we still import a lot from China?
[SPEAKER_01]: And then I also want to get to, as we enter, as we have a Elon Musk being the first Chileaner, at least worth $1 trillion.
[SPEAKER_01]: Do we really understand what a trillion dollars looks like?
[SPEAKER_01]: Compared to a billion compared to a million, compared to a thousand, I want to go over that because I think we need to put this moment into perspective.
[SPEAKER_01]: I'll think that'll be interesting to see how if this marks a phase shift in the political norm from a populist standpoint, how people feel about having no longer just billionaires or tens of billionaires but literally a trillionaires.
[SPEAKER_01]: We'll talk about that.
[SPEAKER_01]: We also have voice main calls, one is on DNY, Melon, Municipal Bond Infrastructure Fund, BDMB, and then Allison transmissions ALS.
[SPEAKER_01]: And of course, we also have questions that came in via the comment section on the Best Talk YouTube channel.
[SPEAKER_01]: But most importantly, we'll be your live call.
[SPEAKER_01]: So we're going to take a quick break.
[SPEAKER_01]: Please remember you can call anytime and leave your question on the Avastock Voice Bank.
[SPEAKER_01]: If you're listening via our live stream or possibly an AM1220 in the Bay Area, you can call right now at 8-899 chart.
[SPEAKER_01]: Up next, I'll comment on today's market activity.
[SPEAKER_03]: There are a few things that make KPP financial special.
[SPEAKER_03]: One of them is parallel investing.
[SPEAKER_03]: This means they invest right alongside their clients.
[SPEAKER_03]: Here's how it works.
[SPEAKER_03]: When KPP financial makes a trade for their clients, just in client makes the same trade for himself and KPP.
[SPEAKER_03]: On the same day, at the same price and same percentage.
[SPEAKER_03]: No front running, no special treatment.
[SPEAKER_03]: Learn more about Parallel Investing at Investalk.com.
[SPEAKER_01]: Let's go take a quick look at the market today.
[SPEAKER_01]: It was a very interesting day indeed.
[SPEAKER_01]: You had the S&P up up, but one in two thirds of a percent, NASDAQ up over three percent, the Dow though, only up less than one percent.
[SPEAKER_01]: So very interesting day overall, you had health care names down.
[SPEAKER_01]: Obviously oil names down, and this is all because it seems to be.
[SPEAKER_01]: a memorandum of understanding being signed on the 19th in Switzerland between US and Iran to extend the 60-day ceasefire.
[SPEAKER_01]: Certainly, there's been a lot of talk about this, more ending and whether it will actually be resolved in time to
[SPEAKER_01]: Global oil stocks are running dangerously low.
[SPEAKER_01]: I think we're at a 45 year low of inventory.
[SPEAKER_01]: And so it's important for that oil to start moving that end those end products.
[SPEAKER_01]: Remember, this is not just oil.
[SPEAKER_01]: It's chemicals, natural gas, et cetera.
[SPEAKER_01]: That's moving through that straight.
[SPEAKER_01]: And it looks like it should reopen in the coming week or so.
[SPEAKER_01]: Treasuries were a bit stronger, yet yields down to basis points on the short end, which says that the Fed will likely turn a little bit more dovish than it would otherwise, although two basis points is not that much.
[SPEAKER_01]: So I think that's notable, that may be the equity rally is a bit overdone.
[SPEAKER_01]: The dollar index was down point one percent, another indicator that,
[SPEAKER_01]: Yeah, the Fed might be a bit more dutch, but only a 0.1% move is not much.
[SPEAKER_01]: Gold finished up 2.7% back about $4,300 now, silver ended up 3.3 Bitcoin futures up 4.7.
[SPEAKER_01]: With WTI crude down 4.9, the lowest close since the 5th of March, which was about a week after the start of the Iran Roar, Iran War.
[SPEAKER_01]: So overall, it was a very positive day.
[SPEAKER_01]: President Trump wanted to announce something on his birthday, but it's going to cost.
[SPEAKER_01]: It's going to cost the administration of the other country billions of dollars to help reconstruct Iran.
[SPEAKER_01]: The question is, what's again, is will this stick?
[SPEAKER_01]: We know that there's a battle, contentiousness between what the United States wants, what Israel wants, and obviously what Iran wants.
[SPEAKER_01]: So which, where can they get to a point where all three of them say, okay, this is good enough, we are sticking to it.
[SPEAKER_01]: So far, they haven't come to that.
[SPEAKER_01]: And I think you still have to be a bit skeptical until it's actually a true settlement, probably 60 days out.
[SPEAKER_01]: So that's what we're looking at.
[SPEAKER_01]: The economic numbers came in a bit better than expected,
[SPEAKER_01]: continues to be strong.
[SPEAKER_01]: So we're having a little bit of that inflation issue going forward as well.
[SPEAKER_01]: We're heading to a break.
[SPEAKER_01]: I'm ready for your call now.
[SPEAKER_01]: I hate it and I'm going to enjoy it.
[SPEAKER_03]: Get ready for an all-new in Vestalk Wealth webinar beyond the yield, how to invest for your income needs.
[SPEAKER_03]: Tuesday, June 30th, noon to one Pacific time.
[SPEAKER_03]: Learn more and register now at investalk.com.
[SPEAKER_01]: Let's take a live call in San Francisco.
[SPEAKER_01]: We're going to talk to Lynn, listening on KDOW.
[SPEAKER_01]: Do you have a question for me?
[SPEAKER_00]: Oh, yes, and I love your show.
[SPEAKER_00]: You're the only person that actually tells us what to invest in, what not to invest in.
[SPEAKER_00]: Anyway, Justin, I'm a low-income advanced teenage senior.
[SPEAKER_00]: And I'm just wondering if you have just a couple of hours
[SPEAKER_00]: to invest in the stock market and you're willing to take maybe a higher risk than the average person and then if you could invest like four 500 a month on going if there's anything that you would suggest to invest in.
[SPEAKER_01]: Well, the first question I have is your your your older.
[SPEAKER_01]: you said you're relatively low income and this money is it is this for money is money to live on is you have a goal for this money what what is this money going to be used for and what time frame.
[SPEAKER_00]: No this money would be separate from the money I'll live on so it would be something that could take me a little more risk crime.
[SPEAKER_01]: got it.
[SPEAKER_01]: Okay.
[SPEAKER_01]: And so you're looking for maybe some funds or some acid allocation that would make sense over the maybe medium to long term.
[SPEAKER_00]: Yes.
[SPEAKER_01]: Okay.
[SPEAKER_01]: Probably not too long term because I'm getting up there but yeah medium term medium term okay so you're willing to take some risk which means that you can probably get a little bit equities in there but in today's world I would probably want some sort of harder assets.
[SPEAKER_01]: So I would probably have a mix between like a global ETF.
[SPEAKER_01]: Because you're probably not going to do individual stocks.
[SPEAKER_01]: It doesn't sound like you probably have the time or the wherewithal to do deeper research on individual names, correct?
[SPEAKER_00]: Mm-hmm.
[SPEAKER_01]: Yeah.
[SPEAKER_01]: So you want to stick with funds.
[SPEAKER_01]: Probably want a low cost, a global ETF.
[SPEAKER_01]: I think that would be the start.
[SPEAKER_01]: There's some, there are a lot of good ones out there that are that are low cost.
[SPEAKER_01]: But I would focus on global, not just domestic.
[SPEAKER_01]: Then I would probably sprinkle in a good amount of harder assets.
[SPEAKER_01]: So number one, like a REAT fund that would produce some income for you, a diversify you beyond just equities.
[SPEAKER_01]: And I also have some sort of precious metals, probably a mix between gold and silver, precious metals, probably in the 10 to 15% of that portfolio.
[SPEAKER_01]: And so that's those are the three main aspects.
[SPEAKER_01]: You probably want to mix in a little bit of fixed income, probably short iteration bonds, as well, maybe in the 20 to 25% of the portfolio.
[SPEAKER_01]: So those are the three main areas that I would focus.
[SPEAKER_01]: Sorry, there's the before main areas I would focus on.
[SPEAKER_01]: You want to lean probably 50% of that being in the global.
[SPEAKER_01]: The global ETF equity ETF and then the other 50% spread between those other three.
[SPEAKER_00]: Thank you so much.
[SPEAKER_00]: I appreciate it.
[SPEAKER_01]: No problem.
[SPEAKER_01]: I wish you good luck and call back to you have any more questions.
[SPEAKER_00]: Thank you Justin, you can hear you too as well.
[SPEAKER_01]: Let's go with a YouTube comment section question.
[SPEAKER_01]: Samiem says, hello, Investock.
[SPEAKER_01]: We'd like to get to thoughts in opinion on the recent SEC ruling change that effectively scrapped a minimum $25,000 out in day trading requirement.
[SPEAKER_01]: I see very little media attention on this.
[SPEAKER_01]: And the argument is that it lowers the barrier for more investors.
[SPEAKER_01]: Does this not make it riskier for investors, the investor, especially if trading on margin?
[SPEAKER_01]: How is that rule change beneficial to the market?
[SPEAKER_01]: So usually that pattern day trading requirement is for retirement accounts, IRAs, Roth IRAs.
[SPEAKER_01]: There's not really that issue with taxable brokerage accounts, which is what you would need to be to take on margin.
[SPEAKER_01]: So that I'll just address it in regards to those retirement accounts.
[SPEAKER_01]: And I think the simple answer is it's important to have some sort of safeguard for the average investor.
[SPEAKER_01]: I don't think that it benefits markets in any way.
[SPEAKER_01]: When I hear benefits markets,
[SPEAKER_01]: To me, it's all about maybe creating more liquidity, more price discovery, et cetera.
[SPEAKER_01]: And frankly, I don't see this doing either.
[SPEAKER_01]: I see this as a much higher risk that investors will miss use it, especially in today's world with very get rich quick.
[SPEAKER_01]: There's a lot of gambling.
[SPEAKER_01]: There's a lot of day trading.
[SPEAKER_01]: And to do that in an IRA or Roth IRA, just doesn't, I think benefit the end investor, who should be investing more for the long term, because most traders, they, they flame out.
[SPEAKER_01]: They don't have the discipline, they don't have a plan.
[SPEAKER_01]: They just hear stories, they're kind of flying by the sea to their pants.
[SPEAKER_01]: And that certainly is a recipe for disaster.
[SPEAKER_01]: So if you see this change, to me, this is more to do with lobbyists, they want more trading, they want to make a spread, especially high frequency traders and the Citadel so the world, they want more volume and they can make their extra little penny on or tenths of a penny.
[SPEAKER_01]: And that's what this is all about.
[SPEAKER_01]: This is not better for the investor,
[SPEAKER_01]: It's not creating better price discovery to be frank, and so I don't like this change.
[SPEAKER_01]: Now, we're 24-hour, boy's bank never closes so you can leave your finance and invest in question right now anytime it 8-899 chart, and I'll work continues after this break.
[SPEAKER_01]: At KPP Financial, Accountability means more than advice.
[SPEAKER_01]: It means we invest alongside you, through our parallel investing approach.
[SPEAKER_01]: When we recommend an investment for clients, one or more KPP principles invest their own capital at the same time.
[SPEAKER_01]: Same day, same price, same percentage.
[SPEAKER_01]: If your portfolio moves, ours does too.
[SPEAKER_01]: That is alignment.
[SPEAKER_01]: That is transparency.
[SPEAKER_01]: That is the KPP difference.
[SPEAKER_01]: Visit www.envesttalk.com to get your free portfolio review.
[SPEAKER_01]: Our main focus point today is about automation and where this industry is evolving.
[SPEAKER_01]: There are some recent news from Honeywell that they are targeting acquisitions to expand their industrial automation business, moving into what is right now a $35 billion market with a lot of growth potential.
[SPEAKER_01]: They're spinning off their aerospace business and looking to simplify their portfolio
[SPEAKER_01]: In order to prove, core operations, efficiencies of industries around the world.
[SPEAKER_01]: So obviously, they see a lot of potential within the space and they're looking to make acquisitions anywhere from two to four billion dollars, which in today's age is not that big, but looking for applications for these new technologies.
[SPEAKER_01]: And the question is,
[SPEAKER_01]: How will this translate into economic growth?
[SPEAKER_01]: How will it be tracked?
[SPEAKER_01]: How will we know if a automation is truly benefiting the broader economy in aggregate and that individual sectors and companies?
[SPEAKER_01]: And we do this by looking backwards and we say, okay, there are other things that have been automated throughout the world, throughout history, things that workers,
[SPEAKER_01]: had to do.
[SPEAKER_01]: I'm going to have no longer needed to because technology replaced them.
[SPEAKER_01]: Think of the telephone operator or think of ATMs automated teller machines.
[SPEAKER_01]: Once the customer was able to deposit checks by taking a photograph, you need to visit a branch.
[SPEAKER_01]: You didn't need as many tellers.
[SPEAKER_01]: So in technology automates tasks of an existing service, it triggers what it's called Javans Paradox.
[SPEAKER_01]: The service comes cheaper, demand expands, and often employment does grow just in a different area.
[SPEAKER_01]: But it only works when the technology makes the existing service model more efficient.
[SPEAKER_01]: It allows people to do it themselves.
[SPEAKER_01]: So the service ultimately collapses, but there's higher demand for that end.
[SPEAKER_01]: Service.
[SPEAKER_01]: So think of the telephone industry.
[SPEAKER_01]: Once the operators were no longer working and transferring calls, well demand for phone calls exploded and they were able to charge,
[SPEAKER_01]: the volume one up dramatically.
[SPEAKER_01]: And so what you're likely to see is that this will be more of a self-service thing.
[SPEAKER_01]: Talked about before the agentic AI, agentic AI will be a lot like an ATM or being able to deposit checks via your phone app.
[SPEAKER_01]: It will be a technology that makes traditional workflows that the consumer goes through on an everyday basis
[SPEAKER_01]: flights, or vacation, maybe comparing credit cards, whatever it is, these are things that will no longer be done by humans.
[SPEAKER_01]: So AI will extend the mechanism of automation to all types of end results.
[SPEAKER_01]: Doctors will see patients and a lot of times I do it.
[SPEAKER_01]: I throw my lab results
[SPEAKER_01]: I get great feedback, great suggestions, great insights that I don't need to see a doctor for.
[SPEAKER_01]: Same thing is for home services.
[SPEAKER_01]: You can ask AI why this is happening.
[SPEAKER_01]: How do I troubleshoot this?
[SPEAKER_01]: And you don't need to call a plumber.
[SPEAKER_01]: Maybe you can fix that in your own or in the next shition.
[SPEAKER_01]: Maybe you can fix that in your own.
[SPEAKER_01]: So AI will push the cost of executing a lot of tasks towards zero.
[SPEAKER_01]: And when this happens, you're not going to see it in government measures, at least in growth, but you will see it in the human experience, human efficiency, and you're going to get higher output per worker.
[SPEAKER_01]: So it's all about productivity gains, and that's what could prevent a spiraling of inflation.
[SPEAKER_01]: That's the one way out of our debt situation.
[SPEAKER_01]: as a country, as a globe, is that productivity gains can allow for just as much if not more economic output with less input.
[SPEAKER_01]: That's the promise of AI over the long term.
[SPEAKER_01]: Now, in the near term, I actually think it's very inflationary because of the input costs to AI data infrastructure.
[SPEAKER_01]: And it's probably going to number of years until these models are so efficient that they will need as much cap X spending.
[SPEAKER_01]: But that's probably once again years away.
[SPEAKER_01]: So what companies do invest in?
[SPEAKER_01]: You invest in the companies that are going to realize those efficiencies whose workers will no longer need as much equipment.
[SPEAKER_01]: Maybe as many supervisors.
[SPEAKER_01]: they will just need access to AI that can do a lot of the heavy lifting for them that can supervise it because you still need that, you still need that human element, it just makes the human element able to
[SPEAKER_01]: execute more efficiently, more effectively, and with higher volume.
[SPEAKER_01]: So when you're looking at how to invest for AI or automation, go downstream.
[SPEAKER_01]: Don't just think of the Honeywells, certainly that can be part of it, but that's not where the analysis should end.
[SPEAKER_01]: Let's keep things moving and drop another fresh listener question now.
[SPEAKER_05]: Yeah, I got a question.
[SPEAKER_05]: I'm interested in quantum computing, and I've got it down at three stocks.
[SPEAKER_05]: I'm going to pick one of them.
[SPEAKER_05]: I
[SPEAKER_05]: opinion.
[SPEAKER_05]: Thank you.
[SPEAKER_05]: My name is Dan.
[SPEAKER_05]: I am your broadcast.
[SPEAKER_01]: Thank you so much.
[SPEAKER_01]: Dan looking at three, quantum computing stop, stocks, IMO and Q.
[SPEAKER_01]: To me, this is fairly simple.
[SPEAKER_01]: It is Google.
[SPEAKER_01]: Now why is that?
[SPEAKER_01]: Well, first off, Google's brain trust is certainly some of the best
[SPEAKER_01]: Big of the leadership of Google, the ability for Google or Alphabet in this case, too.
[SPEAKER_01]: Give the best and brightest stock options.
[SPEAKER_01]: Large salaries, because they're very profitable.
[SPEAKER_01]: Resources and data that these other companies just don't have.
[SPEAKER_01]: There's so much about the rest of the business that could support and potentially improve the likelihood that they will be the ones to crack the quantum computing code.
[SPEAKER_01]: Find real-world applications for it, make it efficient, consistent, effective, all of that.
[SPEAKER_01]: That's the dream of quantum computing.
[SPEAKER_01]: IBM's looking at it as well, and they have some, some advantages here, but not like Google, not or alphabet.
[SPEAKER_01]: Their business, while still profitable, is not exactly growing like gangbusters.
[SPEAKER_01]: In fact, it's growth is relatively bigger.
[SPEAKER_01]: I think you move on to like IO and Q,
[SPEAKER_01]: aren't producing much revenue, and they're not, they don't have the built-in advantages that these large companies have.
[SPEAKER_01]: Well, it's again, from its talent perspective and the ability to really drive innovation.
[SPEAKER_01]: But just, you have to call a spade a spade.
[SPEAKER_01]: There's a lot that goes into this innovation game.
[SPEAKER_01]: And having more resources can certainly help you.
[SPEAKER_01]: And, you know, that they're very reliant on raising capital from you, the shareholder.
[SPEAKER_01]: And they're unlikely to be the winners in the end.
[SPEAKER_01]: So I would pick alphabet over all of them.
[SPEAKER_01]: Let's go take another voice bank question now.
[SPEAKER_07]: Come to ask a question about silver crest asset management, pick your S A N G. I was your curious on your opinion of it.
[SPEAKER_07]: And if you can guys should add more or get out of it.
[SPEAKER_07]: And I was also just curious about your guys opinion on the asset management space.
[SPEAKER_07]: That's an general.
[SPEAKER_07]: Thank you for the question.
[SPEAKER_07]: Have you did?
[SPEAKER_01]: S A M G is the symbol silver crust asset management.
[SPEAKER_01]: kind of what we do, but they're public 83 million dollar market cap interesting.
[SPEAKER_01]: So very small name.
[SPEAKER_01]: Free cash flow about 8.7 million return equity only 5% the stock is way down that it's 10 dollars and 84 cents from is the amount to a weekly chart here.
[SPEAKER_01]: It's peaked in, I can't imagine, go to a monthly.
[SPEAKER_01]: When did this ultimately peaked?
[SPEAKER_01]: It looks like a peaked in 2023, July, around $22, $23 per share, and now we're down to $10.90, so we're down over 50%.
[SPEAKER_01]: They have a good amount of debt in their balance sheet, about $32 million in net debt.
[SPEAKER_01]: Sorry, one that.
[SPEAKER_01]: a $51 million in that debt.
[SPEAKER_01]: I'm an $83 million marketer.
[SPEAKER_01]: That's a lot.
[SPEAKER_01]: The free cash flow has been on the client as well.
[SPEAKER_01]: Peacons 2022 at $43 million down down to 8.7.
[SPEAKER_01]: So I don't know what you, what gets you might excited about this name.
[SPEAKER_01]: It's certainly not the chart.
[SPEAKER_01]: It's certainly not the balance sheet.
[SPEAKER_01]: Now about the industry as a whole, I do think it's, now I could be biased, right?
[SPEAKER_01]: We manage a lot of client assets.
[SPEAKER_01]: We have a lot of clients.
[SPEAKER_01]: We're getting new clients all the time.
[SPEAKER_01]: So we're doing very well.
[SPEAKER_01]: I think a lot has to do with the fact that we're very accessible, the parallel, investing, angle, we're investing, we're like right alongside our clients.
[SPEAKER_01]: So there's some built-in advantages
[SPEAKER_01]: But if you don't have the right structure in this environment, I certainly think you can struggle.
[SPEAKER_01]: And clearly, they are struggling.
[SPEAKER_01]: So I would pass on it because of the overall trends here.
[SPEAKER_01]: If you're very selective in today's day and age, you can't just buy any company you have to understand how they stack up in the AI world.
[SPEAKER_01]: Clearly, this is not one that.
[SPEAKER_01]: is benefiting, so I would pass on S-A-M-G.
[SPEAKER_01]: Here comes one quick question from A today, I need an answer.
[SPEAKER_06]: Hi, I was wondering if you could give me your opinion on industrial logic.
[SPEAKER_06]: Properties Trust, I-L-P-T.
[SPEAKER_06]: Thanks very much.
[SPEAKER_01]: ILPT Industrial Logic Logistics Properties.
[SPEAKER_01]: Trust, the function is a read that owns and leases industrial and logistic properties.
[SPEAKER_01]: It's been on a bull run since the bottom last year on the variation day when it traded $2.00 and changed.
[SPEAKER_01]: That would have to $8.91, so quite the run on ILPT.
[SPEAKER_01]: That's the dividend here.
[SPEAKER_01]: yields about 2.2%, relative strength is very good, 92.
[SPEAKER_01]: I like the space that this is in.
[SPEAKER_01]: We look at it's debt levels.
[SPEAKER_01]: Ooh, that is the issue here.
[SPEAKER_01]: And that's why it's had such a big move.
[SPEAKER_01]: There was major worries back in the spring of last year with what's going on with tariffs, or what went on with tariffs,
[SPEAKER_01]: be impaired.
[SPEAKER_01]: And with this level of debt, four and a half billion dollars net debt on a market of $594 million.
[SPEAKER_01]: There's worries that this is a bankruptcy candidate, so I was trading under $3 per share.
[SPEAKER_01]: earnings just to be up to $141 next year, but I don't love the free cash flow.
[SPEAKER_01]: or the profitability.
[SPEAKER_01]: So to me, I, I don't get excited about this name.
[SPEAKER_01]: I don't like that level of debt, so I'm passing on ILPT.
[SPEAKER_01]: Those are the best stock I'm just in contact with.
[SPEAKER_01]: One goal here, each every week day, so help you achieve your own version of financial freedom.
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[SPEAKER_03]: Invest Talk.
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[SPEAKER_01]: So we are a little over a year on From Liberation Day.
[SPEAKER_01]: When the big talk was China, it's all about tariffs and China, and how that would impact prices, and it certainly did, but less than even I expected, and most people expected, but did have some impact.
[SPEAKER_01]: But what's interesting is that what's going on in the Middle East and the disruption in oil supply of the straights of our moose is actually having a pretty large impact on prices coming out of China.
[SPEAKER_01]: In fact, factory gate prices rose to their fastest rate almost four years last month in May.
[SPEAKER_01]: Mainly due to higher energy prices.
[SPEAKER_01]: The producer price index was up 3.9% year every year in May.
[SPEAKER_01]: But the highest rate since July of 2022.
[SPEAKER_01]: And it's third consecutive month of expansion.
[SPEAKER_01]: Now three months is selling a lot, but that was, remember there was years of price
[SPEAKER_01]: within the Chinese industrial capacity, industrial base, shall we say.
[SPEAKER_01]: So the fact that this sparked inflation is certainly notable and it even sparked CPI growth of 1.2 percent.
[SPEAKER_01]: Now that was flat month over month, but once again,
[SPEAKER_01]: For years, CPI was in decline, mainly because the Chinese economy is grappling with housing slowdown that continues and strong domestic competition because once again, there's a lot of industrial capacity in China, over capacity, and not only are they competing around the globe, but they're competing domestically as well, but they can't do anything
[SPEAKER_01]: export prices in May were up 19.4% year over year.
[SPEAKER_01]: Part of that is higher in Picasso's 9.2% rise in the raw material prices.
[SPEAKER_01]: That's expected to move into double digit levels this month and next.
[SPEAKER_01]: But also base effects.
[SPEAKER_01]: That's always important.
[SPEAKER_01]: These are contexts you have to understand when you are looking at
[SPEAKER_01]: one year ago may.
[SPEAKER_01]: Well, it was right after liberation day.
[SPEAKER_01]: And there was a huge decline in prices because they were trying to offset the increase in tariffs.
[SPEAKER_01]: That's all but reverse because these tariffs have been deemed illegal, etc.
[SPEAKER_01]: And then you add on top of it those hiring put costs.
[SPEAKER_01]: Unmuntly terms the PPI was up 0.5% in May.
[SPEAKER_01]: So once again, part of that is
[SPEAKER_01]: What's the expect going forward from China?
[SPEAKER_01]: Well, they continue to target that 2% inflation figure.
[SPEAKER_01]: So they're okay with a little bit inflation, but this, this is more about those gate prices.
[SPEAKER_01]: Like I said, at 3.9% May, which will feed into what we pay for goods coming out of China.
[SPEAKER_01]: So this tells you a lot about the goods inflation that we're likely to see in the coming months.
[SPEAKER_01]: Now, their GDP growth targets, four and a half to five percent, that's the lowest in decades.
[SPEAKER_01]: So they clearly see that their economy is maturing, but inflation is here to stay, at least here domestically, because we buy so much from China.
[SPEAKER_01]: But that over capacity, I think we'll still weigh on what happens in China.
[SPEAKER_01]: So you have to know this because, and you have to talk about it, it's very important to follow what's going on in China because they still are the second largest economy in the world.
[SPEAKER_01]: So just because the headlines are focusing on what's going on in the Middle East, doesn't mean that you take your eye off the ball elsewhere.
[SPEAKER_01]: China is an important factor.
[SPEAKER_01]: I'm Justin Klein.
[SPEAKER_01]: What do I remind you of about K-P Financial's parallel investing, we make a trade for our clients.
[SPEAKER_01]: We make the same trade for ourselves and the same day, same price, same percentage, no grant running, no special treatment.
[SPEAKER_01]: So to me, it's we invest right alongside our clients, we should at the same risk and potential for success, and you can learn more.
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