Peter Tuchman
Appearances
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
A hundred percent. And I think you've said probably the most important thing, and it's what I didn't touch on earlier. The most important thing is that you like and trust your advisor. You have to be comfortable with this person because you're going to be seeing them a lot, talking to them a lot. Even if they check every box, right? They're a fiduciary. They're not a broker registered with FINRA.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
There's no conflicts when it comes to your money. There are no commissions. They don't take custody. They're competent. They have the right designations, but you don't feel comfortable. It's not the right advisor. for you. Make sure that you're very comfortable with whoever you're sitting across the table with.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
If you're working with a firm that has more than one person, you like the firm and don't connect with the advisor, ask for a different advisor.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
They might a little bit, but if they're adults and professionals, they'll get over it.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
The advisor should work with you to develop a personal plan to figure out what makes the most sense for you to own. They should show you all the investment things they recommend. And then when you reach an agreement, they should go ahead and place those trades to make those investments. They should maintain the account, rebalance when necessary, other trades that you've agreed on when necessary.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
They should keep you on your savings plan. They should at least do an annual review of the financial plan, and they should be available to you throughout the year, all the time when you have financial questions about anything that impacts you personally.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Just your brokerage. So IRAs, taxable investments, things that you would hold at a custodian like a Fidelity or Schwab. Your bank accounts where you keep your checking and savings, those should stay with you.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
So some financial advisors have the technology to connect to that and manage it for you directly. Some plans don't allow you to do that or advisors don't have that capability. So instead, they'll pick what's going on there. They might go online with you in the room and help you fix that or get on the phone with you and help you get it where it needs to be.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
And sometimes some advisors just keep it totally separate. I just know at Creative Planning, we incorporate it into the investments in the plan, but that will depend on the advisor you're working with.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
So most advisors don't do anything with taxes. Some will at least get materials together to give to your CPA. And some advisors are very involved in tax. At Creative Planning, we are very involved in tax. We try to control the capital gains tax of the portfolio. We try to reduce income taxes. We do tax planning sessions with our clients. And for many clients, we prepare tax returns.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
And so it's really a function of the advisor. Financial advisors, the majority of them focus on investments. Some also include financial planning. I think that's mandatory to have financial planning. And some go the extra step and also do tax and maybe even legal.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Yes.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
That's right.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
So I think a couple of things. I think one, are you getting the communication that you need from this advisor? So if they're not calling you back, if you're not getting in your views, it's not working. Everything else doesn't work. it's time to get a new advisor. If those things are being met, we're looking at performance. Like we have an idea of where you are and what you're trying to do.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
On track doesn't mean your portfolio's up 50%. It just means compared to what the markets are doing, how are you doing? Are you somewhat tied to those things? If the market's up 20% and you're up 2%, there's a problem. So we need to figure out what's going on there. How are you comparing to the benchmarks that you're up against? Are your large stocks, how are they doing compared to the S&P 500?
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Are your small stocks, how are they doing compared to the small cap index and so on? And then also, are you able to solve your other problems? As you have a question about how to refinance your home or whether you should buy or lease a car, are you getting the answers that you need to those questions from your advisors? Are they able to help you outside of that as well?
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Well, to me, it's if in the public markets, if we can match the index, you're doing great. So if you're part of your portfolios and large stocks and you're tracking the S&P 500, that's great. If on an after tax basis, you're doing better. That's amazing. If you own private investments, you should expect over time to beat the public markets.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
If that's not happening over a five year period, there's a problem. And of course, you have to compare your bonds to the bonded next. We can't compare the bond part of a portfolio to the stock market. The bonds will always do much better or much worse because they're different types of investments entirely.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
I love to at least once a year at a minimum. So where you're just going through everything and just going, look, I know we're communicating throughout the year, but I want to make sure nothing got missed. So you go repeat an entire process again. What's your net worth? What's your retirement? What's going on with education? Is our insurance needs covered? Have we done all we can to mitigate taxes?
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Is your will and trust correct? So it's just this check of everything to make sure that through all the phone conversations and Zooms and emails throughout the year, is there anything that got mixed? That's why you want to repeat the whole process.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
That's right. So there's some advisors that get paid a commission if you buy an investment. And this is definitely not the route to go because it creates an inherent conflict between the advisor and the client. So if an advisor is saying, hey, buy this one and
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
you've got $50,000 or $100,000, put it in here, that advisor gets a 5% commission, they're going to recommend things where they get bigger commissions. And so it doesn't put you on the same side of the table as the advisor. Instead, you want what's called a fee-based advisor, where on the $100,000 account, they'll have a fee to manage that $100,000, but there's no transaction commission.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
There's nothing that happens on the front end. So what's the advisor's goal? The advisor's goal is to go look for whatever investments can make your account grow. because they're getting maybe 1% of what they're managing for you or whatever the amount is. So they want that account to go up. Because there's no transaction cost, there's no incentive to push you from one product to the other.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
And there are some places that do that. Basically, I divide it to commission or fee. You never do commissions. You're over in the fee world. Most of the advisors in the fee world, they charge a percentage of what they're managing. For your listeners that have a 401k at work, that's what you're doing there, right? You're paying
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
a fee that's built into the mutual funds or built into the plan somehow. It's not a commission and it's not a fee. It's tied to the investments. Some of those fee-based advisors, instead of doing a percent of the investments, will say, hey, we're going to charge you $1,000 a year, $5,000 a year, and we're just going to advise you on everything.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
That's a little rare and involves setting a bill and writing a check and reevaluating what that fee may be every year or two based on the complexity. But that's also an option at some firms.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
That's right. So as a creative planning, for example, if somebody's got $500,000, they might pay around 1%, but if they've got $2 million, they're going to pay 0.9 or something like that. The fee goes down as the account goes up. The more dollars you have, the smaller the percentage that's charged at most places.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
The dollar amount goes up. That's right. Yeah.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
There's layers of fees. So the first thing you want to do as you look for an advisor is go, what are all of the fees? So there's fees in the portfolio. So you might buy stocks, ETFs, mutual funds, bond funds, private investments. They all have their own fees. So that's one layer you want to look at. There's a very wide variance there. In the public markets, your fee could go anywhere from zero to
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
very quickly, 1.5, 1.6%. You want to be on the lower end of that. In the money management world, you can have fees that go, depending on how big the account is, from 1.2% down to 0.25%. But there are a lot of firms that charge more than that. I think that's just too much in today's world. If you've got an advisor that's charging one and a half or even 1.3, 1.4, it's just too much.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
And go look for some other option.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
I think we were probably the first firm in the country to put all of this wealth management in one place at scale, being able to give legal advice, tax advice, investments, planning, all under one roof. So client comes in, we're able to solve a lot of problems for them, simplify their life, get them on the right track, account for all these different things.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
And I think the second part is the investment approach. We've been doing it a certain way for decades and the market's really moved in that direction. We're very focused on the after-fee, after-tax return that our clients get, and really tying their portfolio to their specific situation.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
We know how much money you need and when you need it, and we're going to optimize everything to the best we can to make sure it has the highest chance of getting where you want to be when you need it.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
And I think that approach of needs-based investing, instead of focusing on someone's age or their risk tolerance, really figuring out what do you need and when do you need it and tying things together that way, it's gone a long way.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Great to be with you again.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Great to be back, Nicole.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
I think anyone that's in a realm where they're investing and they've started to reach a place in their life where, to me, if you have less than $50,000, you should be putting everything in the S&P 500.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
So if you start to get over that amount, definitely over 100,000, that's when it makes sense to reach out to an advisor because the advisor can start to bring different investment options, change your allocation, make it global, add small, add bonds, even add private investments as your account continues to grow, or you can start to
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
have a chance to outperform the public markets by owning private things like private equity and private lending. And also, it becomes a little more valuable to start to tax manage your investing and just generally your life to try to reduce the tax bill as much as possible. So those are thresholds to think about where it might be time to reach out to an advisor.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
That tends to be, I think, the perfect spot.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
All right. So the must haves, I like to call them the C's. And let's start with the first C, which is custody. You never want to work with an advisor that takes custody of your money. It just puts it in their own accounts. If you think about Bernie Madoff and that crisis, people who hired Bernie Madoff literally wrote a check to Madoff Investments and he went and put it in his bank account.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
You never want to work with an advisor that does that. So this is an example at Creative Planning. We custody our clients' assets primarily at Charles Schwab or Fidelity. A client never writes a check to creative planning. They write it to Schwab or Fidelity. It's custodied somewhere else. And that's the safest way to work with an advisor. Most advisors work that way. That's a must have.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
I think the next is credentials. You want a team that has credentials. If you're getting tax advice, make sure it's a CPA. If you're getting legal advice, and believe it or not, a lot of non-lawyers are giving legal advice. Make sure that person has a JD. They're actually a lawyer. And financial planning team should always include someone with a certified financial planner designation.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
I also focus on credibility, like how much experience does this firm have with people like you? Do they work with a lot of people of your profile? If you've got $250,000, you want a firm that's working with a lot of people that have $250,000. And if you've got $10 million, you want to work with a firm that has a lot of people that have $10 million.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Many firms just cover one area or they don't have a lot of experience in that space. You don't want anybody to be learning on you, just like you don't want to go to a doctor that doesn't do the kind of surgery you're going to have all of the time. You want somebody who's really used to seeing that. And the way we remedy that at Creative is we make sure
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
There are groups that serve all of these different people. So they're dealing with specialists all of the time. And then I think cost matters. You want to make sure that, hey, what am I going to get and what am I going to pay? If I'm going to pay a money management fee, is it going to be customized to me or not? Are you going to do a financial plan for me? Is that financial plan included?
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Am I going to get tax advice? Is it included? Make sure that you understand that you're getting value for what you pay for. And the most important thing is make sure you're working with a fiduciary. make sure you're working with somebody that has to be a fiduciary to you 100% of the time, no exceptions. This means no brokers, no duly registered advisors.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Make sure you're dealing with somebody who is investment advisor only and only serves as a fiduciary all the time.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
So if you go to the website of the advisor and on the bottom, it says FINRA, F-I-N-R-A, FINRA is regulating them or they're a part of FINRA. That means that they're a broker at least some of the time. The people in that firm are registered as brokers. What that means is they may have their own investment products. They may get paid on commissions. They may receive revenue sharing.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Instead, you want a firm that is not registered with FINRA. That means that firm is an independent advisor only. And is a fiduciary to you all the time, meaning they have to act in your best interest all the time. They can't receive commissions and hidden fees and things like that.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
That's right. Brokers, if you say, hey, are you a fiduciary? Most of them will say yes, because in some circumstances they are. So it's a very confusing marketplace. And knowing the trick on how to tell the real difference is key.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Yeah, absolutely. I think whatever your wealth is, when you're talking to the firm, just ask, how many people like me do you work with? You don't want to hear 20. You want it to be a very significant amount. I remember when I went and got LASIK surgery many years ago, it was pretty innovative at the time. I looked for the person that did it more than anyone else.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
And the biggest things in your life are your health and your wealth in terms of handling them correctly. And so making sure someone's very experienced is key.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
I think you want to walk somebody through. You want to make sure you tell them what you want. Here's where I am today. Here's what I'm trying to accomplish. You want to go through those Cs that we talked about, make sure they're fiduciary, but you want to understand their investment philosophy. What type of investments are we going to buy to get me from here to there?
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
If they talk about how they can beat the market or they're going to market time or you're going to pick the right stocks, probably not the right place to go. Those are antiquated approaches that lower the chance of you hitting your goals. I think understanding what other services do you have? Are you going to be able to give me tax advice, legal advice, insurance advice, planning advice?
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
And then is there a certified financial planner that's going to build a plan for you to get you from point A to point B? I is going to go a long way towards narrowing the field. There's 380,000 advisors. If you make sure that you do not have a broker, now we're down to 10%.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
If we make sure we've got one that's got the scale to serve you that works with a lot of clients like you, you're probably going to get down to 1%. You start to go through these other questions, you can really get to the right person.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
I think at least bringing your investment statements, right? So being able to say, here's how I'm invested today. I don't know that the first meeting with that advisor, you need to bring everything in the world. You need to bring your legal and your tax and so on.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
But I think at least bringing your investment statements is going to be enough to create a dialogue about what you're doing and how they might approach things differently.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
100% correct. The advisor needs to impress you. You do not need to worry about a thing.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
When was this, Nicole? I'm having a hard time visualizing.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
I think that the goal here is you're going to the advisor and you're taking this step because you want to get to the right place. And you're just hurting yourself by keeping anything from the advisor. And so a lot of people will, they own a certain investment there. They might be embarrassed about it or they don't think the advisor agrees with it. So they won't tell the advisor about it.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
or they talk about a savings pattern that may not be doable, these can result in the wrong recommendations. And so I remind myself when I go to the doctor, there's nothing I'm going to talk to the doctor about they haven't seen or heard before. Same thing going to the advisor. They just want to help you get to where you want to go and just be as open as you can with them.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Yeah, it definitely should be free. I know there are some that charge for that first meeting, but you definitely want it to be. I wouldn't go to the advisor if it were anything else. And so this is just an exploratory meeting.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
This is for you to understand, is this a person that I feel comfortable giving my money to, everything I've ever worked with, so that they can, under their guidance, help me get where I want to go. So this should be a discovery meeting with no charge.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Right. I think it can feel pretty intrusive, but I think everything's fair game because the advisor really wants to understand what's going on. And so if I know what's going on with tax, I know what your estate plan is like, and I know if you have kids and I know if their college is paid for or not paid for, do you have account set up or not? Are you funding your plan at work?
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
This is a lot of information, but it really is first meeting information because it's only understanding that stuff that we can say, okay, here are the types of accounts we need to set up. And here's the way we're going to reduce your tax bill. And here are the kinds of investments that make sense for you. And so I would be prepared in that first meeting to be asked a lot of questions.
Money Rehab with Nicole Lapin
When You Need a Financial Advisor and How Find the Right One with Peter Mallouk (CEO of Creative Planning)
Yes, and insurance. Yeah, a red flag is when they want to sell you insurance as an investment vehicle, but they'll definitely need to ask about insurance.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
We're very loyal consumers. We know the different companies are out there and everybody knows a lot about finance. We just came out of a time, you know, from covid where I always talk about the democratization of the trading community. You as a young person going to college was suddenly your life was interrupted by covid.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
You were suddenly sheltered in place, quarantined at home, sitting there with a stimulus check or whatnot, or just trying to figure out, how do I navigate this? This is new. There's no playbook for, what do I do when my life is completely interrupted? I don't have classes to go to. I'm at home, and I'm at that point in my life where I'm trying to figure out what to do.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
How did you navigate your way through that? Keep your focus. And one second thing is, Did you always have that confidence? It's funny for me. I have a mentor whose name is David Meltzer. David Meltzer is one of the great life coaches to many billionaires around the world. He's the gentleman that the movie Jerry Maguire was made about. He was a gentleman who has seen great success.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
He's seen great failure. He's gotten back on his feet. He's a big motivator and inspiration to me. He always talks about that You know that feeling when we wake up in the morning, we're about to embark on something new and we have to make that phone call or we have to make that call to TD to see if they'll see me or we have to go and see that professor or we have to network in these environments.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
We get nervous, we get anxious, we don't feel we are good enough or our self-esteem is in question. And he always talks about those butterflies that we get in our stomach and that when we're about to do something, And he said he always said to me, because I would say to him, I said, I've been around for a long time. And still, when I embark on a new thing, I still get nervous.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
I'm still anxious about it. And I kind of feel like, where does that come from? Is it a lack of confidence or whatnot? He flips that whole narrative on his head and says, no, when you're about to embark on something new and you've got those butterflies in your stomach, that is actually you. about to embark on something that is really significant.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
As opposed to looking at it as a negative, it means you're about to change some stuff up. So where did that confidence come from with you? Because it doesn't, a lot of children, a lot of people who come to me, right? You knocked on the door a number of times, but persisted. A lot of people try and reach me and maybe not and never call back. Some people try things. They get knocked down.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
People's focuses aren't right here right now. Everybody's out there. They got through their first shopping on Black Friday and Black Monday for Thanksgiving. And now we're sort of in that small, quiet time between now and Christmas, right? We are, all eyes are on the markets for the economic data, PPI, CPI coming out on Friday. That is significant.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
The first door they go to is not opened automatically, and they kind of give up. And they may have actually lost an opportunity along the way. So where did that confidence come from? Tell me.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
So, you know, it's interesting because study habits are super. So there are a lot of things that are important because along the way I did so many. If you ever hear me tell my story about studying, getting a degree in agriculture, international business, owning a record store, trading commodities, moving to Africa for two years, coming back here, finding my job on the stock exchange.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
My journey into finance was not a direct one. And so it's a matter of what are the qualities that make us able to find our goals and achieve our goals, find success, find fulfillment and whatnot. We may not always have a direct line to what we end up doing. And mine was not, but persistence, discipline, consistency, honesty, um, are super important things.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And also the things, as you said, trying to do everything in your power to build confidence. Also not feel that you can't knock on every door. It's not a matter of how many times you get knocked down. It's how many times you get back up and not miss that next opportunity. And also along the way to learn the study habits too, so that when you find something you love to do, right?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
You'll never work a day in your life. You're going to have all of those components to be great at whatever you do. want to do. So for me, I know that in my world that I've done, look, I've had a really, I've had good times and bad times. I've had a lot of success in my life. There's success, which is kind of short-term financial success.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And then there's fulfillment, where you really have that feeling that it's a gift, that you're able to connect people to opportunity and actually do good things. But one of the reasons I sort of had this epiphany when I was talking, we were talking about what was going to be our next segment here in Money News Network, Trade Like Einstein, was because I get this question asked all the time.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
That will either be the catalyst to take this market higher or pull the market back. Look, a couple of days of a sell-off or a pullback or slight consolidation when basically it's very sector-centric. is not any reason to really get concerned. Anybody who's been in the S&P this year is up 27%. And you know what?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And I know that I can motivate, I can frigging motivate a dead person. I can connect you with people along the way on the industry. But there's a far journey between where you are as a young high school student or a college student and those four years that transpire. Because I know I have people who contact me all the time and all they'll just say is, can I have an internship?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Can I have an internship? I'm wondering if there's a better way that we can get people to understand, how do you do that? How do you read up on the person? Now, we've talked about it too. When I introduce people to somebody that may be able to better them along the way, and I'll just say, you know, start to learn, start to meet people, right?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
There is absolute, the key to this thing is building a resume, not a resume that you have with all your achievements on a piece of paper, because as we know, from some guy who's running for Congress that you can make that stuff up any day of the week. But it's a matter of along the way is making relations. Relationships are kind of key for me, right? I'm one of these, I'm a humanist, right?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And so along the way, we have a really nice relationship. It went from her knocking on my door, me giving them a tour. Then I went and spoke at the forum she talked about, which was a real give back situation. It was me and three or four people who are Baruch alum who had been through the ropes, who had gone through that journey, who had found success, and they were still in it.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
They were in their second and third year of their jobs at Morgan, at JP, at Citi, at wherever they may be. And they came back to give people that help. I don't need to die with the most toys. That does absolutely nothing for me. But along the way, what's so powerful, and I learned this from my dad, is that that It's not a matter of really dying with the most toys.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
It's a matter of along the way, if you can better someone else's life and uplift other people and create this team atmosphere where we can actually be successful and find fulfillment together, that's awesome. My son, Benny, has obviously felt that and learned that from me. We have a team of five interns. Alicia is one of them. And we're here trying to teach them what we know, whatever it may be.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
She may not actually end up in finance. It seems to be somewhere where she's headed. But at the end of the day, the things that we learn along the way about relationships, about honesty, about networking, about opportunity, about connecting with another person. Those are the things that people who already have done this thing.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
It's like surrounding yourself with people who empower you and not people who envy you and stuff like that.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Hey everybody, it's me, the Einstein of Wall Street from the floor of the New York Stock Exchange. Ladies and gentlemen, I'm going to be your temporary host sitting in for Nicole Lappin of Money Rehab as she is on maternity leave. We're going to be doing episode after episode every day of what the heck's going on, giving you a forensic breakdown of what's happening into the market as we end 2024.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
It didn't happen just like that.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
So you've got two days, the market is not down even a half a percent, so I wouldn't really get concerned. We do have a little bit of a pullback. That's legit. Dow and the S&P were off just a little bit today. 20 handles, nothing to cry about.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
So the key is this doesn't happen by accident. We always joke about it. Technical analysis, losing a lot of money doesn't happen by accident. It happens because you average into a bad trade. Same thing here. So you need to wake up every morning and grind. You need to walk the walk and talk the talk. You need to do the work.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
We talk about it also in our academy that you'll get out of it what you put into it. It doesn't happen by accident. You can't sit there in your bed, you know, having been out all night doing whatever you may be doing and think that the opportunities are going to come knocking on the door. So I think you've done a lot of work. It's really clear that way.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And the persistence and confidence is one thing. And it's important, as I said before, that you know what? You may not wake up every day with that confidence, but at the end of the day, if you're not going forward, you're going backward. And that momentum and forward motion, no matter what, do something every day.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
I know it for me too, because look, life is challenging and it's not going to be a straight path. And I'm sure for you, there were points, whether it's financially, spiritually, emotionally, or whatever way it is, along the way you had bumps in the road, there were headwinds and whatnot. But if you're looking, if you keep your eyes on the prize, right?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And look, whether it's even one day that you just don't have it and your get up and go has got up and left, and then you reach out to someone else, right? Asking for help. It's another thing I learned from David Meltzer. We kind of feel that we're maybe less than and we're not good enough if our confidence that it's at highest peak. But at the end of the day, you can go out there and ask for help.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
You can knock on any door. What is the worst thing that's going to happen is someone's going to say no. Did you have doors you knocked on that people said, I'm sorry, it ain't happening?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Literally, look, if you've been trading this market this year, and you've been in the S&P, and you've been in the Russell, and you've been in the NASDAQ, and you've traded tech, and you've been in this market in any kind of a way, then you're having a great year. I don't think anything's going to change in 2025. I'm anticipating an exciting volatile market. Is it going to go up or down?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
You know what? Look, I've been around for a long time. I have my board of directors. I'm going to call them that going forward. That's great. People who I need help with for my emotional stuff, my spiritual stuff, my financial stuff. And also those days that you wake up and just things are not, the planets are not aligning, right? Life is really challenging.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And obviously, and one of the reasons I do what I do is because I've got a sense when COVID came around, I went through a lot of real challenges, right? I got really sick. I almost died from COVID. And I kind of realized that that I needed something. I needed something to motivate me spiritually, emotionally, whatever way to get through this challenges.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
I literally was hours away from death during COVID. And then I thought of it and I have two young kids and I sort of realized too that, that, you know, life throws lots of different challenges and what it must be like. Look, well, along the way I had, I had an incredible, incredibly privileged background, but I also come from a family that had challenges along the way.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
My parents are Holocaust survivors. They did not have things as easy along the way. They spent four years in prison. Their whole family was decimated. Yet, and this is something that I learned and has taken me so much farther, is that I would ask my mother, how did she survive four years in a camp with thousands and millions of people around her dying every day?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And she said, one day at a time, I believe it could get better on the other side of this craziness. And it's same thing that happened with me when COVID came along. It doesn't matter where you come from or who you are at the end of the day. We've seen stories of people Amazing success stories, right?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
People who came from nothing and have actually built themselves an incredible life full of fulfillment. You don't have to come from something to become something special. Sometimes that spirit, the resiliency of people who are not handed things. I watched Chris Rock's video the other night, and he was talking about people being spoiled and people learning lessons.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
and what it is like to come from nothing and actually suddenly have something, and what it takes in the resiliency and the forward-lookingness to do this. I do what I do on a daily basis because I've sort of gotten this sense, this isn't easy. Life itself isn't easy. Finding something you love to do isn't easy. Finding relationships, going to school, finding internships,
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
All these things along the way. And my fear is that somebody along the way, you're going to get knocked off the beam. And I would imagine a majority of people who get knocked off the beam don't get back up or don't. They will have missed an opportunity that could have been not only great for them, but great for us because we will have missed the opportunity who have met them along this journey.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
The answer is yes. That is a fact. I guarantee it.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
That's for me. That's why I come in here every day, whatever's going on. Right. Because I don't want to ever miss an opportunity of connecting people to opportunity to help her out or Donnie out or what we're doing here with Nicole and Money News Network. We are trying to network and open up doors and break ceilings and put create opportunities for people to look.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
I've met so many people in my life. I've had doors closed on me. I've opened other doors for other people. That feeling is exceptional. So I think we're going to wrap this up. I think we're going to do more of these. But at the end of the day, we must acknowledge this isn't an easy road. It doesn't happen by accident. This young lady has done an incredible job.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
But my gut is with the new administration and some of the things that we've carved out by bringing Elon Musk, as wild and crazy as he is, into the mix is going to protect us and sort of pad us, put a little bit of a cushion between us and whatever potential wild and crazy times Mr. Trump is going to have around the China story and the tariff story and all that kind of stuff.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And we're going to sort of even break it down more for you because I know. I get the question asked more times than you can imagine. How do I go about this? What do I do if I'm in high school and I don't know what I want to do? Is that a bad thing? If I didn't get into my favorite college, am I going to be a loser? If I'm in college and I'm not sure of my direction, what do I do?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Am I afraid to knock on that door? That guy's not going to answer me. Who am I? And all that kind of stuff along the way. What are the study tools I need to learn? How do I actually do this? The step-by-step, walk-the-walk, talk-the-talk breakdown. So, Alicia, thank you so much for what we've done so far. I think we have a lot more to talk about to break it down.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
But it's clear, this is an amazing opportunity to share what I know, connect you with Alicia, who obviously has done it. She's hitting on every piston. She's checked off all the boxes along the way. And we're hoping, if I have anything to do with it, I will support her and raise her up. to become her best self and be an amazing person that she is.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
So we're really happy she's here with us on Money News Network. We're thrilled to be here with Einstein. Trade like Einstein and thank you for the day. Boom! That's all I got to say about that.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Trade Like Einstein is a production of Money News Network. Trade Like Einstein is hosted by the ever energetic Peter Tuchman. Trade Like Einstein is executive produced by Morgan Lavoie. Thanks so much for listening. Check out MoneyNewsNetwork.com for more podcasts.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Net, net, you've got so many parts of this market that are super exciting. Also, we're seeing a little bit of rotation. When things tend to pull back, you're seeing people put their money elsewhere. Look, also, let's think about it. Mutual funds shut down at the end of, at the end of October, hedge funds shut down at the end of November. So we are now in the first 10 days of December.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And so you're not seeing the volume that you usually would see because a lot of the major players have stepped out. They've shut down their books for the year. If you think about it and you were a hedge fund and you were in this market at all, and I would imagine they've had a better year than they've had in a while, then you know what? Why am I gonna take the chance of all that?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Look, either it's going to be a major sell-off by the end of the year because people are going to start taking profits from a great year.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Why would I want to sit around and wait for that when I've got to go back and I've got to sit in front of my customers at the end of the year and I've got to explain to them why I had such a good year and why I'm going to stay around for that last month to give back any of the gains that I've had, right? No reason for that.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
So that's why you do see some of the major players in the game shut their books down end of October, end of November. And so who does that leave? You've got people also positioning themselves for 2025. Obviously, there's going to be a lot going on coming into the inauguration, coming into the beginning of the new administration, whatever Mr. Trump plans on doing.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
My gut is we're seeing that Jay Powell, there's not going to be an interruption in the Jay Powell story, which I think is good, because look, whatever you may think of him, politically or not, he's done, I think, a great job. If it wasn't for him, I think, and what he did and the way he planned this thing, let's think about that for a minute.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
This man, after COVID and after the crazy inflation story, and nobody should blame him for it at all. It was all, again, don't even blame Joe Byron for it. It had nothing to do with that. The bottom line was you had the perfect storm happen between COVID, everybody not wanting to go back to work, a complete interruption in everything in the world, right? The world shut down. It closed down.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
There was blood in the streets, people dying everywhere. and then you have to turn the switch back on, and there's still people who still haven't gone back to work. I mean, how crazy is that? Look, I knew, for me at least, given the opportunity to go back to work, I definitely took that chance. But anyway, somebody took us from,
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
from COVID, got us through COVID, printed a bunch of money, learned our lessons from 2007 and eight. It took nine years to get back to even after $800 billion was input into the market as that stimulus to get us out of the financial crisis. Nine years to get back to even because they put 800 billion into the market over 18 months.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And stay tuned for some of the best interviews I've done since the beginning of this show in 2024 in food, in fashion, in finance. and fun. We'll be seeing a lot of you, so stay tuned.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
This time confronted with a major, major geo-global economic disaster that COVID was. We put $3 trillion into the market over three months. That's like a massive triage as opposed to kind of trickling in the help that we needed. It's like a big Band-Aid as opposed to small little Band-Aids. And at the end of the day, we were back to even by August.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
12th or 19th of the same year, up 20% in 2020, 28% in 2021. That's what his policies have done, and that's unbelievable. And look, then we got ourselves up to 8.5% in inflation, and we've gotten ourselves back to 2%. We've gotten unemployment back to where it needs to be. We've gotten everything gas back to where it needs to be. So net-net at the end of the day has done a great job.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
We are in a good situation. We are having a great year, and I want everybody to appreciate that. Anybody who's participated in this, I hope you had a great year.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
If you haven't, and you wanted your New Year's resolution, it's going to be, I'm sitting around on weekends with my friends and family, and everyone's talking about how they made money in tech and in crypto and in the market and all that, and I'm sitting here having not participated in all of it, that's got to end. You've got to reach out to me, DM me the word, wild and crazy.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
I will happily set you in the right direction. My gut is probably by the end of the week when we have the economic data come in, PCI, PPI, PCE, I believe, PPI and CPI, that's when we're going to see this market, I think, sort of take off. Look, anything can happen, but that's my gut. That's the way the market's been acting. Don't get all freaked out about the last two days. It's healthy.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Markets pull back. If nothing is fundamentally changed in the stocks that you've been watching and they've down like 1%, 5%, whatever, they're off $2, $3, $4, $5, which they have been over the last couple of days. If you were dying to buy some tech, but you didn't want to pay top dollar, well, it's no longer top dollar. They're trading at a discount.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
It's like your favorite leather jacket at Macy's when it goes on sale during the holidays. You don't go running for the hill screaming fire, fire, fire. You walked into the store. Put down your credit card and buy that coat. That's what I want you to do. Have a shopping list in the last three weeks of the year.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Three, two, one. Hey everybody, it's me, the Einstein of Wall Street. We are here with Trade Like Einstein. I am Peter Tuchman, and we're here on the floor of the New York Stock Exchange in the balcony. History is made in this building every single day.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
If we do have a sell-off, which would be fine because we've had a great year, then have a shopping list of the companies that you like, the people, the process, the product, the profitability. Those companies you've been watching, they've been trading, frothy. across the board. And now hopefully maybe they will go on sale. Then that's the time you take your time to buy.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Anyway, do your own homework. If you want to learn how to trade the market, come join me and David Green at Wall Street Global Trading Academy. If you want to get an update of this market every single day, come and watch Trade Like Einstein with Money News Network with me and Nicole Lappin. Have a great day. Bing bong, Shotzi. I love you. I'm out of here.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Hey, everybody. Now that we've done the wrap up on what the heck's going on, episode 9487, please stay tuned for one of my favorite interviews of the year from 2024. It's coming right at you.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
We are so excited today to have something super, super special. We have our young friend here, Alicia Ishvak, okay? She is a student at Baruch College, and it's super important for us to really understand what's going on here. You know I like to break down that I've found something I really love to do. We talk about education, motivation, inspiration, and whatnot.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
So I was fortunate enough to meet this young lady through, she actually came to me and tried to come and meet me here at the New York Stock Exchange. And she represents a group of young finance students at Baruch College here in New York City. And we were able to sort of connect. And that was sort of important because, you know, everybody tries to get to me.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
They want to come down here to the Stock Exchange. And very often people are very... anxious or don't feel they're worthwhile to get in touch with me to try and get their message across.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
What I loved about her connecting with me was she knocked on the door, I opened the door and we had this immediate connection because I could feel she really loves what she does and she wanted to, she was on a road to success. And that's what we're going to call this episode, Road to Success, The Exception to the Rule with Alisha Ishfaq. So I want to introduce her. How are you?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Somebody with my long-term experience, I've been here for 137 years, it is my responsibility to help teach you how to navigate this market successfully. Boom!
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Persistence is one of the greatest qualities that I respect in a human being, okay? So what ended up happening, she came down to the stock exchange after two months of knocking on my door. You know what, if you keep knocking on my door, I promise you I will eventually answer it. Okay, so we came down to the floor, we met, we had a tour with this young investment group from Baruch College,
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And we had an amazing time. And then our relationship sort of grew. I ended up doing a forum there with their investment club. And that sort of has opened up bigger doors. She's now an intern with us at Trade Mosque, working with my son, Benjamin Tuchman, on an amazing trading model that we do on the floor.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
What is so different about this young lady, in my opinion, is look, it's been a while since I've had my hand on the pulse of what it's like. Look, we always joke about it. I went to high school with Alexander Hamilton. That was 137 years ago.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
So it's been a while since I had my pulse on what it's like to be a young student, an aspiring high school student, a college student, someone looking for interns, trying to find that road to success. Perseverance being one of the greatest qualities of that.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Today is Tuesday. I believe it is December 10th. And, you know, look, now we've got two days in a row where the market's pulling back a little bit. I think it's been fueled by a couple of different things. First of all, the market's just a little bit exhausted, right? We know that yesterday's sell-off was probably prompted by a lot of that bad news about monopoly accusations against Nvidia.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
So I thought it would be interesting, we talk about trading the market, charting, education, motivation, inspiration, all the things that really make up me and my love here, and my love for what I do, the adrenaline in everything I do. But I think we're gonna break this thing down for Money News Network, for this new show, Trade Like Einstein, and really break down her,
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Her journey, her journey as she came here as an immigrant, she has grown and become an incredible young lady and a student and really is on the road to success. And look, she's not the rule. She is the exception to the rule because she's checked off every box along the way. And we know it's an incredible challenge.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
I know it, I have two young children, I know what it's like, actually, even though I don't have my finger on the pulse, I know what it's like to be a young student, somebody aspiring to be really great and find success in something you love to do. But I thought it was super important in this age, we're in 2023, OK, the world is different now. We've got computers. We've got social media.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
We've got a world that just came out of a pandemic. So what is it like for a young student trying to find success, trying to find something they love to do? And we're going to frame it within the world of finance because that's what I do and that's the direction she's going to do. So we're going to ask her to tell her story and get on with it. Let's go.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And Trademoss here on the NYSE.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
I went to Baruch. Go.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
And that's, look, once that happens, that really kind of pulled the market down. But look, guys and girls, net net, Friday, you know, due to the great economic numbers that came out, we did close at record highs across all indices. And we've been doing that every day, every week, every month for the last 12 virtually. So these record highs can probably exhaust the market to a certain extent.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
What's Fez?
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Join as many clubs as you can.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Tour number two.
Money Rehab with Nicole Lapin
Why the "Santa Claus Rally" Happens & How To Build a Career in Finance with Peter's Intern!
Let me interrupt you for a second, because let's talk about the qualities that it takes to be able to do what you're doing. Look, everybody out there has so many interests. We are barraged by all of the wonderful things, all these companies that we talk about here on the floor. I always talk about this, the greatest consumer generation in the world. And so we we are involved in it.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I mean, if you really believed in those companies a month ago or two months ago, you should really be excited about them now. And helping people lean into those, opportunistically rebalancing, switching asset classes in a down market, And then as you mentioned earlier, Nicole, taking advantage of tax situations. I think all of those are kind of just the beginning.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
But the other thing that an advisor can do is really help somebody determine their risk tolerance because you can talk about it all. Anybody can talk about risk tolerance all they want. You really find out in a bear market what someone's risk tolerance really is. So these are the times for people to be asking themselves, hey, am I really in the right portfolio for me?
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Can I live through this if it went on for months and months and months?
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
That's right. When you're on the roller coaster and you're in the middle of the bear market, you cannot get off the roller coaster. You have to follow it to the end, get through the bear market, but then ask yourself, am I willing to ride that roller coaster again? The bear market is going to happen again. Like we said, it's just like the horror movie. There's going to be a sequel.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
And so if you can't take it after that ride is over, get yourself on a different type of roller coaster, maybe a more moderate one. If you're totally unfazed, maybe you can even take more risk in terms of accept more volatility in your portfolio and move upstream. But the decision should be made after the market has returned to normal.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
The market has some relief there. But I think this is going to go on for quite a while because the reality is we're now doubling down on a trade war with China, which is our biggest trade partner. So it's a bigger deal to be in a trade war with China than the bottom 40 countries in the world. So I think that's a real thing for negotiations with the EU, Canada, Mexico.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
This is going to go on for a while. And I think there will be more. I don't think it's over. Let's put it that way.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Yeah. In terms of bear markets, this as dramatic as it is, would be on the lower end of drama in terms of bear markets.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Yeah, I mean, we're talking about an existential threat to the global economy, even working, right? If the banking system collapses, it's like the circulatory system of your body. You just can't function without it. And that's what we were talking about then. You could even say with COVID, everyone thought they were... going to die for a period of time there.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I mean, these are really, really big events that were external. This is self-caused. No one thinks the global economy is going to collapse. No one thinks everyone's going to die. We're going to get through this one way or another.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Well, I mean, definitely it was much bigger scale than expected. So I would never tell them like, hey, this was totally forecasted. But I do think that knowing there was going to be some tariff dispute, this should not be a surprise. And he did it in his first presidency too. And the market also went down 20% at that point. It took three weeks for that to happen.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
So it was a little less dramatic, but it went on a very long time. It took almost a year for the market to get back to normal.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Well, the big opportunities in a recession are building the ownership part of your portfolio. So all investments fall into one of two categories, owner or lender. So if you own US stocks or international stocks or real estate fund or private equity fund, or you own your own business, or you own a duplex you rent out, those are all ownership investments.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
And then the other side lending is loan money to the federal government. That's a treasury. You loan it to The state of California, that's a municipal. You loan it to Microsoft, that's a corporate bond. Those are all loans. You loan money to your friend, that's a bond as well. But in a recession, it's when being an owner, all those ownership assets are on sale in the recession.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
So really looking for the quality there that fits your long-term approach and going as far into that as you possibly can, that's the perfect time to be doing it.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Yeah, this is very, very rare, Nicole. So basically, normally when stocks are down, bonds are up. That's what happens about 85% of the time. That's not what happened this time. And part of that was we don't know if Japan and China were starting to sell all their bonds, but something happened.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
over the last couple of days where there was a lot of supply of bonds thrown on the market and it drove bond prices down. So you're seeing both bonds and stocks go down at the same time. But even with that, they go down very differently. When bonds go down, they go down usually a few percent while stocks are going down 10 times as much.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
So even when they're not behaving exactly the way we want them to, they're still providing a buffer.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I mean, if you think about the Trump administration's kind of perfect storm, you know, not too hot, not too cold, just the perfect gold deluxe moment would be that they negotiate a better tariff deal with every country on Earth. that they get the other things that they want around immigration with Mexico or drugs with other countries or TikTok and the Panama Canal with China.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Then they have low inflation. They have peace breakout with low oil prices, which really helps with low inflation. But that along the way, there's enough weakness that the Federal Reserve has to lower interest rates. So when all of this debt comes due next year, all those treasuries get replaced with lower paying treasuries. So the federal government's paying less in interest.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
There was a lot of talk that that's what Trump was trying to do, was talk the economy down, drive the stock market down. push the Federal Reserve to lower rates, then you get the lower rates and then you have the negotiations.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I mean, I think there was some truth to that because while the market was going down, he was publicly talking to the Federal Reserve chair saying, hey, you should really lower rates. I mean, this wasn't a secret. It wasn't back channels. He was doing it online. So I think it's very clear that that's the outcome that he wanted.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
The bond market did the opposite as foreign countries started to dump their bonds and probably as part of the tariff war to put him in that spot.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
That's right.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
No one knows. And I always tell people, if somebody tells you that they know, don't take advice from that person. Nobody knows exactly what the Fed is going to do, where the markets are going to go. It's just too many factors, too many variables.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I haven't seen anything like that. I mean, this was incredible. Somebody posted something online. The stock market started to soar a couple of days ago. Then it came out that that person didn't wasn't really correct. Then the market dropped. It just showed. the power of information. If people think anything is reliable, they're looking for that clue, that head start.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
And Twitter, really, you see so much information come out in real time, whether it's from Republicans or Democrats or economists. But in this case, it wound up being not true and the market's quickly self-corrected. But Twitter is a place where people are going to try to get more information about what's about to happen.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
It is absolutely crazy, you know, that the person who basically had the button to control the global economy and the markets that day in advance on Twitter said time to buy is just you can't write this stuff. I mean, it's just incredible.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Well, these predictions, they really almost have to change day to day. I mean, they changed from last Thursday to this Monday. And I think post the announcement that we're not going to have this tariff war with most of the countries on Earth. I would think those recession odds have come down. I mean, there's always a reasonable chance of a recession in the next two years.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
There's always, I think, a 20% chance of that happening, kind of no matter what's going on in the world. I think that the odds are probably still less than 40%, although some people think we're already in a recession. If that's the case, I'll take it. because all things considered, it's a pretty mild one.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
If unemployment is going to stay under 5% and you're going to still have strong corporate earnings while we're going through a recession, that's not bad. I think that a lot of people think that the Trump administration wants a mild recession, because to your point earlier, that would lead to the Fed lowering interest rates, which would lead
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
to the federal government paying less interest on its debt and mortgage prices going down and so on. I think that's a dangerous game. And we saw the Trump administration blink when bond yields moved against them. So I think they're very, very sensitive to where interest rates are.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Yeah, I mean, I think Ray is a historian, right? And if you look at all empires, they eventually collapse. But they don't need to collapse with total implosion. Like we, the United States, took over being the world superpower from the United Kingdom, but the United Kingdom's stock market has soared during that time period. It doesn't necessarily mean that everything implodes and is lit on fire.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
And I think Ray... just to be frank, has had this message for a very, very, very, very long time, a very long time. And I think that it's reflected in the way that their funds have been positioned and have done. I don't share that sentiment. I think the United States has some things that are unique relative to previous superpowers.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
We've got friendly neighbor to the north and the south, and we've got these huge oceans on both sides of us. There is no more secure country on earth Geographically, we've got the number one river tributary system in the world. We're drowning in natural riches, whether it's timber or oil or natural gas or water.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
The United States is one of only seven countries that's totally independent, could function without any other country if it needed to, and
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
nuclear powerhouse with the strongest military to ever exist in the history of the world and i think you put those things together i mean there's a there there's a lot of room for error in the united states it's very different than just a regular country like say greece or venezuela or zimbabwe where you have a currency crisis and everything falls apart that doesn't mean we're on the right track i agree with ray we're not on the right track at all i mean the national debt's out of control the interest we're paying on it is out of control
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
This will create a crisis at some point, but I don't extend it to the collapse, the same degree of collapse that Ray Dalio does.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I think this is, if you don't have one and you don't have a plan, you've been nervous, you don't know how to take advantage of the opportunity, you're not placing any tax trades, this is a time to explore.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
If you're going to explore, make sure you find somebody who is a fiduciary 100% of the time, doesn't own any of their own investment products, is not licensed to sell a commissionable investment. Get somebody that has to be on your side of the table all the time and that also does planning. so that that portfolio can be part of your specific goals.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Where you see people go off the rails is, Nicole, what you and I talked about earlier. They don't really have a plan. They've just bought investments. And so that can lead to poor decisions. If you have a plan and all the investments are pointed towards the short-term, intermediate-term, and long-term plan, obviously, you're more likely to hit your goals that way.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
That's exactly right.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Good to be back. Good to see you.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I'm doing great. I think that like if you've been doing this a long time, you just know this stuff happens every year or two, one way or another. You bear market every four or five years, but you just get used to it. And it's a different story every time. You know, it's kind of like if you've seen a romantic comedy or a horror movie.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
They have kind of this general same thread that goes through every single one of them, but that's a different story. So it keeps you interested. That's how I see bear markets. You know, sometimes it's a health scare. Sometimes it's a terrorist event. Sometimes it's a war. Sometimes it's a housing crisis. This time it's tariffs. You know, you just always have a different story, but in general,
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
It's a similar movie. And so if you've been doing it a while, you just embrace it. You just embrace it. I do think they're like horror movies in the sense that we know something bad is going to happen and then it gets really scary. And even though we know how this ends, you still get scared through the whole movie. And then we think we've killed the bad guy, but then the bad guy is really alive.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
That's exactly like a bear market. Whenever it's gone, it'll be back. Might be back a year from now. Might be back five years from now, but it's always coming back.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Well, it was very interesting because, you know, typically with a bear market, there's a series of events that come all at once, you know, COVID, 9-11, 08-09 housing crisis. And this was very much just one person making an announcement, right? And so President Trump had been talking during the election, after the election about what he was going to do.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
He said he was going to impose tariffs, but he had used certain words like targeted, disciplined, focused. And this was Tariffs on everybody, everywhere. And much more extreme than he originally indicated. He originally indicated 10% and they were coming out with these huge deals.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
So watching that announcement, watching the markets tank at the same time, I wouldn't say anyone here was nervous or worried. It was just like, well, here we go. The market's going to have to price all this in very quickly. And really one administration is going to decide what happens in the market for the next 30 to 60 days.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Now, this can go on for a while where no matter what they decide they want to do, enough damage could be caused that it takes on its own life force and a whole other issues come into play. But right now, I mean, the administration can make it much worse or much better depending on what decisions they make along the way. And so our job is to just navigate our clients through it.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
And if opportunities present themselves, make sure that we seize them.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Right. So I think it is interesting because there's all kinds of people out there. And I would there's what I would call the retail investor kind of doing things on their own. There's retail investors that have advisors. Those would be creative planning clients. There's institutional investors, which are big universities, endowments and so on. Our typical client.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
really is, as a group, is generally unfazed by all of this. So we're constantly educating them on, just like you said at the top of this, Nicole, right? Corrections happen about every year or two. They're 10% or more. The average one's 14%. The bear markets, this is the third one in five years where there's a drop of 20% or more.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I mean, they know this stuff is going to happen and we've built their portfolios to prepare for it. So if you're young and we've coached people that are young, like this is amazing. You know, the longer a market can stay down if you're young, the better because you're saving, you're buying, you want to buy while they're at discounted prices. You don't want the market at all time highs.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
You want it to stay down. If you're young or you're even if you're 55 and you're putting money away, the market run up yesterday was not positive because you want it to be lower while you're buying. But if you're retired or you're older and you're relying on the portfolio, well, you should have bonds to cover your short term needs. So either way,
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
the prepared investor isn't phased because they're prepared. They know these things happen and their portfolio is built in a way to prepare them. I think the average American, that's not how they're making their decisions, right?
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
They're buying stocks that they like and they watch them go down 20 or 30% and then they panic and then they go to cash and then the market goes up and you have this irreversible error. And you see that with the flows in bear markets. People tend to exit the market at the worst times and enter at the worst times.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
whatever they're doing in their 401k or that regular paycheck should always continue. But if for any reason there was some hoarding along the way where there was money, cash kept to the side that's not needed for emergency reserve, we do encourage them to invest that when the market's down. You never call the bottom. I think of it like mortgage rates drop 1%. You refi your home.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Doesn't mean it's the bottom. They might drop again. You just refi again. And so the more aggressive you can be buying in the down market, the better.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
The panicked investor is the worry. The biggest mistakes come from the panicked investors. If you're diversified, the way you're going to screw things up, the main way is by panicking. Now, if you only own one or two or three individual stocks, you have to worry both about the investor and the holdings. But if you're diversified, it's really the behavior that will drive the outcome.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
If you've got the right behaviors... the right actions, follow those behaviors, you're going to be totally fine. Most of the permanent damage you see in portfolios is caused by people making mistakes.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I think empathy is a key to this because a lot of people will call and say, I know what you're going to say, but, and then they'll ask the question. They just want the reassurance and kind of what I tell our team here is, you know, if The churches in America were full after 9-11 and nobody wanted to go there and hear anything but what they've always heard, right?
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
You want to be reassured in times of stress. And so reaffirming, hey, we've talked about these things and we've set up the portfolio this way and this is how this normally plays out is very encouraging. And that's really less about investing and more about education and empathy.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
So I'm a big fan of rebalancing in a bear market. And so if you think about a client that might have 80% stocks and 20% bonds, when the stock market goes down 20%, you're no longer 80-20. You now have less in stocks because the stock value has gone down. You've got more in bonds. The time to rebalance is right then when the market's down. Sell those bonds. Buy more stocks.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
That's forcing you to buy the stocks when they're low. When the market eventually recovers, and that's what's happened every time in history, you'll be ahead of the market because you'll have added to that position in the down market. So that's something called opportunistic rebalancing. Some people never rebalance. Some people rebalance once a year. That's called periodic rebalancing.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Really, the best investor will rebalance when the opportunity really presents itself.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
It's a fantastic time for tax loss harvesting. And basically that's realizing losses on purpose. So this is really hard for people to get excited about. So let's take last year. Let's say you owned the S&P 500 and you owned all 500 companies. Well, over the course of the year, the S&P 500 went up about 25%. That's great. And if you owned just the index, you would do no tax loss harvesting.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
It went straight up. But let's say you owned all 500 stocks and some of those stocks were negative throughout the year. Let's say Visa goes down. We would sell it and buy MasterCard. If Conoco goes down, you sell it, you buy Exxon. And you, you know, Hershey's goes down, you sell it, you buy Nestle.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
Well, what happens is at the end of the year, you still get the same or extremely similar return to the index. You still have that 25%. But because you sold certain things when they went negative and replaced them, you get to put those losses on your tax return. And then you get paid back by the government on those based on your tax rates.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
So you will wind up with a 25% return plus some additional savings on top of it. So it's an incredible opportunity when the market's down to be able to do things like that.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
It's something we do regularly. And there's so much that goes into it. The market can't be too volatile to do it. It can't have There has to be a lot of people trading. There has to be what we call liquidity in the business. Buyers and sellers are really active. So we just automatically do it when all of the conditions are met. But usually if something's negative, we're just going to do it.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I mean, you make a great point about the young investors. I mean, if you really believe like, okay, the market's at this level and when I'm retired, it's going to be much higher. The path from here to there, you want it to be as negative as possible and make it all up at the end, the sequence of the returns. really impacts how much money you will have.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
But for the person approaching retirement, a lot of times they go, well, Peter, I need the money. I'm gonna need the money in a year or two. And the answer is sort of really when most people retire, they're still going to live 20 to 40 more years. They still need a very, very long-term portfolio. You know, in 1950, if you retired, the average person died that day.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
The life expectancy, average person retired in their 60s and the average person died in their 60s. Well, that's not the case anymore. People still retire in their 60s on average, but they live into their 80s on average. So we get this portfolio to go on a long, long, long time. still has to be heavily weighted towards stocks and things like that.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
But what that person should start doing as they approach retirement is have enough bonds that between their remaining years of work and a couple more years on top of that, they're not at the mercy of the market. So for example, if someone's going to retire in one year, they'd have maybe four years of bonds. So you've got one year of work plus four years of bonds, that's five years.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
The stock market can do whatever it's going to do because you're covered in the short run.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
That's right. That's exactly right.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
I mean, I think the big the big things an advisor can do is they can it depends what your asset classes you're in. So there can be a lot of opportunities and private investments which have now become available to more and more people that really can present themselves in bear markets, things like private equity, private lending, private real estate.
Money Rehab with Nicole Lapin
What Not to Do When the Market Is Down with Peter Mallouk
And in an all stock portfolio, people should be looking for opportunities to buy high quality parts of the portfolio while they're weaker. So for example, today, the Magnificent Seven's in a severe bear market, the seven biggest tech stocks in the United States, Nvidia, Google, and so on.
Money Rehab with Nicole Lapin
Is This a Recession?
You know what? Today was a bit of a bloodbath. And I, you know me, I rarely will ever say that, but that was a bloodbath, right?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
And so there was some major accusations against Nvidia, which has been best of breed, Jensen, best of breed for the whole year. It's carried the whole market. It was the first time there was really any kind of bad news on it. And you know how one stock can really drag down a sector, and that's what it did. It took the Nasdaq down. We broke a winning streak in the Nasdaq. But it's a day.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
You think about the Lower East Side in the 1970s. That's Andy Warhol, Basquiat, drugs, you know, storefronts, building fronts. I used to be able to walk down Avenue A and there was literally, there was just, it was just rats. There was nothing, the buildings weren't even there anymore. It was just the facade and people and bums living behind there, right?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
And nobody had the vision, obviously your dad did. Nobody, if you asked anybody, we're not going to touch this with a 10-foot pole. This is going to be dead forever. There's no future to this neighborhood. And if you think about it now, it's like, why didn't I think of that? I could have, would have, should have. Like that mentality. So your father did that. Yeah. How amazing is that?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Yeah. You know, the Schenkers have chutzpah. Let's be clear about that.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
There you go. Give me five on that one.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
First in, first out, let's go. Life of FIFO, that's the way to go.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
You got out of that deal. You got in, you got out. Let's move on. Let's go.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Commercial, for sure.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
We think about that. Sorry to interrupt you, but we think about the whole real estate market. Think about just residential real estate, how it's marketed. I'm sure everybody who's watching this has watched some kind of a real estate show, whether it's million-dollar listings in New York or out west. I mean, you stage... an apartment, right, and you do it in a different way.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
So residential is always way different than commercial. So you've taken the commercial thing to a whole nother level. I just want to talk about your confidence for a minute. Because that's something, risk first of all, confidence another thing. These are things you can't really teach somebody. I thrive on risk and it gives me confidence.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
A day doesn't make a market. A week doesn't make a market. So the market was all red throughout the day. I think we closed down around 25 handles on the S&P. Friday we traded and closed at record highs. We had the economic data we were looking for. Unemployment did tick up a little bit, and that was majorly a function of the hurricane and some strikes.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
That ability, I started here on Wall Street in 1985, some people say 1885. But that sense of the adrenaline around this place, the excitement, The risk, the chaos, I thrived on that. For me, that was where I found my energy and I found my confidence. Some people shy away from that. Some people need to wake up, have a coffee, read the paper before they do. You seem to me like somebody more like me.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
You come out of the gate, you're like a thoroughbred horse just running for it because you just know what you want. You found something you love to do. You'll never work a day in your life.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
You're in the right place. This place embraced you from the minute you walked in it because of those qualities that you have.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
We're gonna work on that.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
So you're a humanist. See, that's how I look at it. You're talking about the deal, and the deal has a lot of all this chatter around it, but at the end of the day, it's two people talking about something.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
The more you know about them, you sort of start to describe in the beginning of this interview about how you don't know where people are coming from and what this deal means to them, but the way to close the deal is about... getting into where they're at on this deal and making connection to them.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
It's about trust, it's about confidence, and it's about them understanding that you have a vested interest in this being a good deal for everybody, right? You're able to walk away from the deal and everybody's satisfied.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
And you've done that. So tell me, so the way you're approaching commercial real estate is obviously gotten the attention of Ryan and obviously gotten attention of the industry. And so you have this show, right? It's called?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
That was up from 4.1 to 4.2, but still, the trajectory's been great with employment, and the numbers have been good. Payroll numbers, 277 versus whatever. Last month, we only had 12 to 14,000. This month, we're back into the hundreds on jobs created, non-farm payroll jobs.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Okay. So talk to me about that.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Look, you have a social media platform and you have a work platform, as do I. And it's not an easy thing to really open up about people's lives and people's struggles, right? That makes you vulnerable. But at the end of the day, being vulnerable in front of lots of people it gets across a different message, right? And people are able to identify.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
They're not comparing, oh my God, she's beautiful, she's got this, maybe she was given all this silver spoon, all this, no. You're showing your vulnerability, you're showing that you're a human being going through having an experience, and that makes you so much more attractive in that way. People will identify with your story. People who have gone through what you're going through.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Maybe you're going to inspire.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
I pretty much guarantee that on this show, you're going to inspire other people who have gone through things to know that they can get through that, that they can go on to find their dream job and find their dream career and find something that moves them and motivates them to be able to be vulnerable, keep going, break barriers and do all that stuff, irrespective of what's going on.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Hey everybody, it's me, the Einstein Wall Street from the floor of the New York Stock Exchange. What a great day to be alive and to be in this market. Ladies and gentlemen, I'm going to be your temporary host sitting in for Nicole Lappin of Money Rehab as she is on maternity leave. Let's all wish her health and happiness for her and her family. It's a beautiful thing. So stay tuned.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
And making it human. You know, it's a different, that's how we get our message. It's a matter of telling your story, right? That's what I love to do. People will look at you and judge you and, you know, make comments or whatever it may be. But you don't get a point across and you don't really make impact unless you tell your story and let people know who you are. That's the point.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
We're here for not a long time, right? But we're here for a good time. You want to get your message across. You want to move people and impact people. It's not a matter of how many, who dies with the most toys. It's a matter of how many lives you can impact while you're here, right? It sounds to me that was probably your father's message, even your grandfather, right?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Immigrants coming to America, went out and found stuff. They went up against it. you know, buying houses on the Lower East Side in the 70s. Everyone told them they were out of their mind. And think of it now. I mean, that's that visionary part of this is what's exciting. Yeah. And you seem like you're a visionary.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
I'm trying to get the psychology and the mental state, because you know when you go home after listening to me, you're going to hear everybody in the mainstream media talk about, oh my God, it's over, the selling off, it's the beginning of the end, blah, blah, blah. But that's not necessarily the case. When we see markets roll over, it's a lot different than what we saw today.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Motivate, create, motivate, and inspire.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Okay, so what's the future?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
What's it look like for you, for Jade? If I may, you're 28 years old. You've done a lot for 28 years old.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Right? You're obviously in the commercial real estate business. You're working with the best people in the industry.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
In a big way. You have this wonderful show. You've been married. You've been divorced. You have wonderful things to look forward to in the future. What's next?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
It's not the money, though, part of it. It's more than that. Legacy. Yeah, it's legacy.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
So he was aware enough to be super proud of you of all the things you've done in his industry?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Has he?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
It must be amazing. And he's just...
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Exactly. There you go. Check it out. You too. This is it. This is my costume.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Awesome. Yeah. Well, you know what? Look, for me, I come here and I bring people up to this balcony for them to tell their story. And the most important for me is for them to motivate and inspire other people to be their best self, to find something they love to do, to go out there and get other people to look. We are living in this really kind of wild, crazy world. Right.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Obviously, you've had you know, you've had some obstacles along the way. Think about this, you know, like covid post covid. right i mean that really threw everybody you were well you were what you were 23 years old right so many people have there's so many people who have gone through so much spiritually with mental illness with a lot of a lot of obstacles in their lives over the last five years
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
And to be able to have the excitement that you have for what you do, to have broken so many barriers in an industry that is, right? That's great. Thank you. You're disrupting the heck out of whatever you're doing. Yeah. And you're coming out of it with a smile. So I'm really happy you're here with me and telling your story.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
And you're here on Wall Street. And really, Wall Street's embracing you in a big way. Think about it.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
We started the conversation as, no, I'm a firm believer, and I always tell young people who ask me about, you know, how do you get to there? There's no door that you can't knock on, the worst that you're going to get. is somebody saying no, right? We learn so much more from our failures than we do from our successes. It's not a matter of how many times you get knocked down.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Today's red action, today's sell-off, In the market, look, it wasn't even a sell-off. Today was perfectly honest. 25 handles in the S&P is kind of a pebble in your shoe, right? And so you need to understand that we've seen there are some stocks that are so powerful in their sector and in their index that they can actually contribute to the whole market going up or the whole market going down.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
It's a matter of how many times you get back up and keep moving, right? And I'm sure you've had that happen to you along the way. And I love being told there's no way you're going to succeed at that. You can't do that. And I love proving them wrong. And you've clearly proved everybody wrong. Jade Schenker, kicking ass, taking names. I love you. And that's all I got to say about that.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
The reason Nvidia is the stock it is today may get impacted on the monopoly story, but for the most part, nothing fundamentally has changed. Stocks that got hit today that are not Nvidia, that are not going up against a monopoly charge, this is the kind of day that is an opportunity when the baby gets thrown out with the bathwater and stocks get sold off in an index or all over the market.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
because of one particular stock and everybody starts dumping stuff, then that stock that you didn't want to pay top dollar for is trading at a discount down $5, down $10. That's the time you have your shopping list. That's the time you see the opportunity. You should have a bell flashing, a light flashing in your house.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Ask yourself the question, I think like putting post-its all over the place, the rules, right? About never turning a winning trade into a losing trade. Always having a plan when you get into a trade. Using technical analysis and risk management when you get into trades. Always protect your downside risk, whether it's an investment or a trade. We've got plenty of wild cards.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
We've had quite a wild year, right? Between the whole polarity around the election, about you got two wars going on. You've got the whole thing in the Middle East, and oil and all those things, yet the market has continued. Yet Friday, one trading day ago, this market closed at record highs across every indice. That is crazy. The S&P is up 27% for the year.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
The economic data that came out this last Friday was spectacular. Now, all that being said, we've got CPI, PPI this week. Very important flag, economic information. that is the inflation target that basically the Fed will make its decision. The wonder is, are we going to close out the year at record highs? I can't tell you. The market's going to go up, market's going to go down.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
I cannot tell you for sure that's going to happen. But the market tells me on a day-to-day basis throughout all the things we've seen this year that there is so much money on the sidelines, people who haven't jumped in yet who are jumping in. People are putting money to work. They don't want to miss this boat.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
So many of them have missed the boat, whether it's in crypto, in equities, in the S&P, in tech, right? Because nobody ever wants to pay the high. And all year, every day, every week, every month, this year, we've had 57 record closes this year. Imagine that. I don't have any trading days every year, but we've had 57 record closes this year at the New York Stock Exchange. Isn't that crazy?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
So it's like, I don't want to pay the high, but I'm sitting around watching today's high, maybe tomorrow's low, right? So look, there's always opportunity in markets. There's never a bad time to buy the market. If you're thinking about a long-term investment, disclaimer across the board, I'm not your advisor.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
We're going to be doing episode after episode every day of what the heck's going on, giving you a forensic breakdown of what's happening into the market as we end 2024. And stay tuned for some of the best interviews I've done since the beginning of this show in 2024 in food, in fashion, in finance, and fun. We'll be seeing a lot here, so stay tuned. Three, two, one.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
I'm just trying to get you into the right mental state and psychology of learning how to trade and invest correctly, taking the emotion out of it. Your first trade, if you are making an investment in a company, do your homework. Check out the company, the four Ps. Process, product, profitability, and the people. That's what makes a good company, right? I learned that from Marcus Limonis.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
That's what makes a good company, okay? But look into the company, and if nothing's fundamentally changed when the market falls back, and you've been holding off on buying the stock because you didn't want to pay record highs, have your shopping list and jump in there. Make a determination how much you totally want to invest in that company.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
And may your first dive into that company be your smallest. And then add on. If it goes up, add on. Going up, if it comes in, average into the stock. That's the only time you ever average into a stock. Anyway, ladies and gentlemen, it's a beautiful day here, even though the market sold off. These are days where it's fascinating to see
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
how everyone talks about it, how other parts of the market sort of fall suit when we do sell off. We haven't had that many. I mean, literally, we've had seven, eight at most. I would say we've got, you know, you can count them on one hand if you had seven fingers. How many times we've had any kind of consolidation sell off correction this year at all. And I don't even think we've had a correction.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
We surely haven't had a crash, but we've had a couple of pullbacks that a couple were significant. Right? But I've talked about it. We had an April 7% pullback. Normal after the first quarter since 2019. May and June, everybody talked recession, depression, all that stuff. That didn't happen. July, a little bit of a pullback. August 5th, the Black Monday crash in Japan.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
That was a very complicated trade. I've told you all about it a million times. September, first week, the worst week for tech since COVID. The second week of September, the best week. for tech since COVID. I think that little scenario, that little tidbit basically describes this year. That in September, the first week of September, it was the worst week for tech since COVID.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
That's a huge, that's a mouthful of a statement. And then week two of September was the best week for tech since COVID. All in one week. You can have a completely, look, bull markets used to take 10 years, generations to happen. We can be in a bull market at 11 o'clock and we can be a bear market by the time the market closes. That's the way this market is, the accelerated pace, the news cycle.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
It's extraordinary. Anyway, I'm going to wrap it up. I love you all. It's a great day to be alive. It's an amazing market. Wake up, find some kindness and gratitude in your life and your attitude, right? And take seriously this market. I need people. to invest in stocks and not stuff.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
I want you all to consider your life and your life's goals or portfolio and build it in a responsible, disciplined, consistent fashion. Anyway, I wish you all the best. I love it here. It's a beautiful day to be alive. Bing, bong, shotzy. I'll see you later.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Hey everybody, now that we've done the wrap up on what the heck's going on, episode 9,487, please stay tuned for one of my favorite interviews of the year from 2024. It's coming right at you. Hey everybody, it's me, The Uncensored Wall Street, from the balcony at the New York Stock Exchange.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
You know I bring you food, finance, fashion, and I've never brought you real estate before, but today is something special, okay? I'm here with Jade. Shanker shanker like shanker like shanker like shanker. You don't even need to think about it too much Look, let's go back probably five ten years ago.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
I'm sure you've all watched million-dollar listings I know I used to binge watch it with my son right Ryan Serhan. Let's talk about in New York real estate retail commercial anyway This wonderful lady who I recently met is a groundbreaking commercial real estate agent. OK, but she's so much more than that. We're going to let her tell her story. It's a human interest story in so many ways.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Hey everybody, it's me, the Einstein of Wall Street. We are here with Trade Like Einstein. I am Peter Tuchman, and we're here on the floor of the New York Stock Exchange in the balcony. History is made in this building every single day. Somebody with my long-term experience, I've been here for 137 years, it is my responsibility to help teach you how to navigate this market successfully. Boom!
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
You know, I love to tell let people tell their stories about how they got here, what it was like, what it's like now and what the future looks for them. We're here on the floor of the New York Stock Exchange. There are thousands of companies here. Many of them are in the real estate space, whether it's REITs, Real Estate Investment Trust.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
whether it's huge companies that are commercial real estate companies and whatnot, but it's all about the deal, right? It's all about the deal, making a deal, making bids, making offers. That's what's exciting. That's what gets us up in the morning. We always tell you, I always tell you to go out there and find something you love to do, get really good at it,
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
And then you will never work a day in your life. And I think that's what we have here with my new friend, Jade. Welcome.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Correct. And think about it. So this building was built in 1903. They started trading outside this building in 1650. Already in the 1650s, there were 26 brokers that used to trade commodities on the bottom of Manhattan. So Wall Street used to be there was a wall and above the wall was just forest. And that's where George Washington was inaugurated. But this is the heart of the financial district.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
You loved the deal, the art of the deal. So let's talk about it. Tell me a little bit about you.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Classifies in the back, there were two pages. Yeah, exactly.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
and the whole landscape of the real estate market has changed.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Hey everybody, it's me, the Einstein of Wall Street from the floor of the New York Stock Exchange, right under the podium. Forget about it. So look, where are we? You know, at the end of today, because we did have a little bit of a reversal, the market got taken down by Nvidia. Stuff out of China, there was some accusations about an antitrust thing, a monopoly story.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Is this a new way? So tell me, I need to ask. So look, I read about you. I just wanted to find out more about you. And there are obviously stories about your dad, right? So tell me that. Give me a little. I mean, you obviously, are you, do you have siblings?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
You're an only child. So are you the daughter that your father had that he really wanted you to get into the business he was in, but he wasn't sure if it was going to be a business that a woman could break into? Or were you the son that your father never had and it was a different thing? Tell me about that. Because we all are a function of our family.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Like my father, Eastern European Jews, came to America after the Holocaust. I was going to be the doctor that he went on to become. It just wasn't my calling. Tell me about that for you. Yeah. Obviously growing up under your father's, he was a real estate person.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Were they in real estate?
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
They were already way back. Wow. So early, early part of the century.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Yeah, exactly.
Money Rehab with Nicole Lapin
Why Nvidia Dragged The Market Down & Jade Shenker (Owning Manhattan on Netflix)
Avenue A and all that. Right down the street on John Street. So what year was that?
Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
One of the things I really love about my work is the fact that I can do it from anywhere. Getting a change of scenery can really help inspire creativity in my work and has once or twice or maybe more cured my writer's block. Being away for work, for fun, or for both is a perfect opportunity to host your space on Airbnb.
Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
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Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
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Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
They can do everything from creating your listing to managing reservations to messaging guests and providing on-site support. They can even help with design and styling. Also, by hosting on Airbnb, you can become part of another family's story, maybe even their hero. As you know, I stayed in an Airbnb for months when my house burned down, and I truly do not know what I would have done otherwise.
Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
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Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
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Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
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Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
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Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
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Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
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Money Rehab with Nicole Lapin
Breaking News on Inflation & David Meltzer on Making Millions and Working with the Real-Life Jerry Maguire
I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Get your 20,000 NASDAQ hats out and there's gonna be a six in front of the S&P by the end of the year. And you have been boom, shaka laka, right on that, both of them, amazing. He's not just another pretty face, forget about it.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Right, and didn't they just say they're putting ChatBGPT into the iPhone?
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Right.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Extraordinary. So the revolution that Dan has been talking about for months now is actually happening. We are in the midst of it. We started eight months ago in the second inning of this game. Now we're probably in the third inning.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
It's so extraordinary. So think about it. When Dan and I were talking a couple of weeks before the election, we were talking about what is the market? Look, that was everybody's question. How is the market going to respond to a Kamala presidency or a Trump presidency? And obviously, look, I believe that this administration, whether Kamala had anything to do with it or not,
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
has to take full credit for where the market is today, right? Mr. Trump cannot take any credit for where we are today, trading at record highs across every indice, some of the best four years, right? We know it. COVID, up 20%. 21, up 28%. 22, down double digits. We know that. It was a function of inflation and the interest rate story. 23 and 24, now up 27%.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
So this administration has obviously is responsible for that incredible market across absolutely every indices. But we were talking about what does it look like on either side, depending on who wins this election? Your question was that, you know, look, a continuation of the past four years. If that goes forward, if Kamala becomes president, then that's not a bad thing.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Our fear was with Trump coming in was obviously tariffs in China. Right. And you said to me initially, we both agreed that that was the wild card that could cause a problem.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
That was probably the biggest limiting factor to maybe tackle the commonwealth. So just to break that down to somebody who doesn't know really what Dan is talking about, a couple of things. FTC, the people who are the regulators out here, are ousted by Mr. Trump, and you're going to have people more friendly to M&A, so we are going to see a lot more mergers and acquisitions.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Number two is by bringing Elon Musk into the inner circle of the Trump family. You are sort of patting, you're patting, you're carving out any potential disaster. Look, you're not going to have Mr. Musk in the inner circle
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
representing Tesla and the other Mag 7 are going to now be protected and carve out around those companies because you know he's not going to raise himself up in Tesla and let everybody all fall by the wayside. By having him in there in the inner circle, that's going to carve out a protection mode for all the rest of the Mag 7 and tech and AI.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Which has not been accepted that well. That's been the wild card.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
So think about it. What was the one thing that took Tesla down to $350 about four weeks ago was the meeting they had about the autonomous cars that was not received well. They knocked Tesla down $70 at that point. And it sat there for three or four weeks. Remember that? We talked about it. And I said to you, what's going on with Tesla? Is it going to come out of this doldrums?
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
And you said, don't worry. Earnings are next week. People are going to get on board with the autonomous vehicle story. And they did. Once again, Dan Ives. Number two, number three for Dan Ars, because earnings did come out. The stock went up $13 after hours, $50 the next day, and it's up $100 since then. But that's also because of the bears.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Bears! Are there any bears here?
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Okay, so where does that leave us? That leaves us in the midst of a revolution, the second, third inning of an amazing ballgame that's all about tech, AI, Jensen, best of breed. It's also, you're talking about... at 4 o'clock in a party that's going till 10 p.m. in a party that's going till 4 a.m.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
with yet a lot of the derivatives of the AI story, Microsoft, Google, Amazon, have yet to be let in through the Red Rocks.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
On the sidelines. Imagine that still on the sidelines.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
So look, how exciting is this? It's absolutely unbelievable to think about what Dan is talking about, this amazing revolution. And look, at the end of the day, I kind of lost my train of thought. But look, at the end of the day, now, come on, bring it back, V. Where are you? You know what? I'll just keep going.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Okay, so what I wanted to remember, that's a great part of this story, but at the end of the day also, think about it. This market, if you had seven fingers on your hand, that is the amount of times, I'm a seven finger hand, like Bruce Almighty, remember that great scene in that funny movie? At the end of the day, we've had seven opportunities this year. Look, This market is up 27% for the year.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
We've had seven times this year where the mainstream media has called recession, depression, dogs and cats living together, all that craziness. We saw it in April, right after the best quarter since 2019. We saw it in July for about a 7% pullback for the first week there. We saw it on August 5th. right, which was that devastating day.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
We came in on a Monday after Black Monday in Japan with all that story, the carry-on trade. We've talked about it many times. Then September, the first week, the worst week for tech since COVID. The second week, the best week for tech since COVID, October 5th. So that is about six or seven times. Then this week,
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
We had two days where the market came off its highs last Friday, record highs across all indices. We came in on Monday and Tuesday and we pulled back. Nothing significant, but the mainstream media kept talking about, this is it, the story's over, the bubble's here, blah, blah, blah.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
When these were sell-offs or pullbacks or consolidations, whatever you want to call them, surely not crashes, were nothing more than an opportunity. We always say, if the story has not fundamentally changed at all, Take an opportunity. In April, when we were down 7% in this market, Nvidia went from 924 down to 700. It happened once again when the earnings came out in March, April, May, and June.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
We've seen this happen in every pullback. The baby gets thrown out with the bathwater. And if the story hasn't fundamentally changed, take this as an opportunity to buy stocks at a discount.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Right.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
You have all... January profit taking. What do you think about this tax credit thing? Like, people are not going to be selling, right? They've got profits in their investments this year, most people, unless you've been trading blind and you're not making any... Even our man Niall here, right, our filmer here, has made a lot of good money this year. Don't tell the IRS. Anyway, yeah, go ahead.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
That's extraordinary. Look, those are amazing numbers. And look, if historic data tells us anything, Dan called these numbers in February 2024, and he's calling them here now. That's what 2025 looks like. Any fears of what could happen within the new administration coming into next year?
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Okay, so think about it. Even though the bears do come out every once in a while, they're sitting in the cave with their Pepsi slushies and a bag of Doritos. Now there's new organic Doritos. I just found out about that the other day. Go check them out. Organic Doritos. Can you imagine? You think the bears are eating the door of organic Doritos?
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
No, it's counterintuitive. Doritos are Doritos. It is. Right, you just want to eat them and get nauseous. Exactly. Okay, so we're going to wrap this up. It's really a pleasure. We are going to have one more, I hope, before the end of the year. Dan Ives, Einstein & Ives, Trade Like Einstein, Money News Network. We are covering in for our friend Nicole Lappin, who's on maternity leave.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Ladies and gentlemen, we are in the midst of a revolution. Put your money to work. We have explained this to you on any level. Get your feet in the water and get busy making money, not losing money. Invest in stocks, not stocks. Have a great holiday. That's it, my man. Dan Ives. Giddy up. Boom. That's all I got to say about that.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Three, two, one. Hey everybody, it's me, the Einstein of Wall Street. We are here with Trade Like Einstein. I am Peter Tuchman and we're here on the floor of the New York Stock Exchange in the balcony. History is made in this building every single day.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Somebody with my long-term experience, I've been here for 137 years, it is my responsibility to help teach you how to navigate this market successfully.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Boom! Hey everybody, it's me, The Einstein of Wall Street from the floor of the New York Stock Exchange. The ceiling, the floor, the greatest financial institution in the world. We're talking S&P 6000. What a great week. We are now, amazingly enough, I can't believe it, I'm still back in July, but We are literally two weeks away from the end of 2024, a year that has given us 27% on the S&P.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
It has hit records in the Nasdaq of 20,000. I think we came super, super close, but surely broke through 6,000 on the S&P. The Russell trading at record highs and the Dow at 45,000, right? Pulled back a little bit this week, but that's not that important. We actually had, on the day that the market broke 20,000 on the Nasdaq, The NASDAQ 100, I believe, broke 20,000.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
That was a day that we had a record high in Netflix, Amazon, Google, Apple. And meta, can you imagine that? Not 52-week highs, but record highs. So these are real numbers, real money being put to work. Really, you know, while the valuations seem to be a bit frothy, people are paying them, right? It feels like today's high is tomorrow's low. I mean, that's the way it is.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
If everybody's been sitting around not wanting to pay top dollar for these stocks and not wanting to pay record highs, well, they've missed the boat. They've missed that whole year. That's why I always say there's no bad time to buy this market. Think about that. We've seen Nvidia, we've seen Nvidia go off the charts.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Every one of these pullbacks we've seen in 2024 has been a screaming buying opportunity for tech, for so many different sectors and stocks on the exchange. So anyway, the last couple of weeks, obviously we did a little bit of a flat line here, okay? So look, eight times out of eight, now it's nine times out of nine when you've had a presidential election cycle, right?
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
You've got a nice rally into the election, a bit of a follow-through rally the couple days after the election, a sort of flat line with a slight pullback until November 22nd. Then you see a nice rally into the Black Monday, Black Friday of Thanksgiving. This year we had amazing Amazon, and nationally we had the greatest Thanksgiving season of all time.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
And then a little bit more of a bit of a flatline into middle December, and then Santa Claus rally into the end of the year. That's happened eight times out of eight times within the presidential political cycle, and this time it happened a ninth time.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
So that was that little bit of a flat line we saw last week, until Friday, when we had those economic numbers, the payroll numbers that came in that were right in line, if not better than year over year, and the market loved it, and we closed on last Friday, a week ago, at record highs across the board in every indices.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Then we came in on Monday, we came in on Monday and the market pulled back a little bit because Nvidia, the Chinese government attacked Nvidia for monopoly practices, right? And that took Nvidia down and it took the baby out with the bathwater and it knocked the whole market down. Look,
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
The bears have been sitting in their caves, dying and waiting to come out, and they've only been able to come out seven times this year. They've been sitting there with their Pepsi slushies and their Doritos, dying to come out. Every time they came out, they came out in April, came out in July, came out in August, came out for small bits of time, maybe a day or two, a week.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
They've been rebuffed by way stronger bullish markets after the fact. And they kept saying, I told you so, I told you so, but that never came to fruition. Right? And once again, Monday, Tuesday this week, they were saying it one more time, like, okay, I told you this is going to happen.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Yet it didn't happen because Wednesday's CPI number came in and it was right in line, 3.3, 3.3, just what the market expected. And the market rallied and once again closed at record highs, up 55 handles on Wednesday. Thursday, sort of anemic at best, probably a little bit of a sell-off because the PPI number was disappointing. But what did that mean? That was where bad news equals good news.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
That negative data that came out is what's going to probably give that last bit of powder for the Fed to cut interest rates in next week's meeting. It's a beautiful thing. So that's probably what's probably going to catalyze the Santa Claus rally that will bring us in at the end of this year over the next two weeks into a record close for 2024. That's how I see it. And you know what?
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Look, I can I may be wrong. I've been wrong before. There could be something that throws completely dislocates this whole story in a big way, but I don't see it happening that way. This week was extraordinary in so many ways. We did have the soon to be president of the United States come down to the floor of the exchange.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
First president since Bush I that came down, and the most notable was Ronald Reagan, who came down on March 28th, 1985, which is the first day that the Einstein of Wall Street got a job on the floor of the exchange. That was the first day I got down here, and what a day it was. What an amazing time, an amazing life it's been for me. He came down to the floor, security was absolutely insane.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
He gave a speech up in the boardroom. Apparently, the US has these reserves of petroleum. Most of our oil partners throughout the world are not our friends, right? Venezuela, Iraq, Iran, Saudi Arabia, and Russia. So we have these petroleum reserves in the hundreds of millions, perhaps hundreds of billions of barrels of oil that we need and gasoline that we need in case of a confrontation.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Well, now Mr. Trump announced down here on the floor of the exchange that we are going to create a reserve in Bitcoin in the same mindset. Right? Besides the fact that he announced that we are going to be the kingdom of crypto, now we are going to have a prudent reserve of Bitcoin in the U.S. basis of the U.S. economy. That's a cool idea. Right?
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
So if you're in that name, then that's probably going to give it a little bit of boost. I think it did. It probably helped take it up to 100,000 a coin where we live right now. He then did come down to the floor. He did ring the bell. You know, he talked about a number of different things. Tariffs in China, blah, blah, blah. The only... The people that showed up for him were extraordinary.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
CEOs of all the biggest brokerage firms, Goldman Sachs and whatnot. You know, Bill Ackman, CEOs of some of the largest hedge funds in the world. Vice president was here. So look, unfortunately, I thought it was going to make the market pop, but it did not do that at all. The market kind of faded into the day and yesterday. Was that yesterday? That was yesterday.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
And then today we had a little bit of green on the open because we had some economic data. It was reasonable, nothing that exciting. And we closed out the week probably, I don't know, net I think we were up on the week. We closed down six handles. You know, the Dow has been under a lot of pressure, probably just one or two individual stocks. But where does that leave us?
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
That leaves us with the Fed meeting next week. My gut is it's 88% chance we're going to cut interest rates. Anyway, I'm out of breath. I got to get out of here. It's been like the longest month for a week I've ever seen. I love you all.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
bing bong shotzi have a great weekend i trade like einstein money news network shout out to my beautiful friend nicole lappen who's on maternity leave may she give birth to a beautiful healthy child and we love you all and that's all i got to say about that hold on to your wallets money rehab will be right back and now for some more money rehab
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
now here's peter's conversation with dan ives hey everybody it's me the onset of wall street from the balcony at the new york stock exchange we are sporting even though he is as per the new york post the best dressed man on wall street we are sporting the same kind of duds we got cool sneaks he's got some cool colors i got my lacoste thing going on we got a very cool hoodie
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
You know why we do this? We want to be accessible to the general public so that we can share with you everything we know about tech, the volatility, earnings, the stock market, and the New York Stock Exchange. Thank you for joining me today, sir. Great to be here. You are the man. So let's go back. Yesterday, obviously, we had Mr. Trump here on the floor, the first president since Bush won.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
And then, obviously, the most notable visit was Mr. Reagan. The first day I actually worked on Wall Street, it was March 28th, 1985, and it was wild and crazy here back then that we had 8,000 people on the floor then working here. So you can imagine when the president come and then we had, there wasn't as much security because you didn't need that much security back then. Bush won, though.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
We did do. There was an old prank that used to happen always on the floor of the stock exchange when a celebrity or a dignitary would come down. Somebody, when they were engaged in a conversation and overwhelmed by the room, someone would come up behind them and dance their shoes with baby powder. Right. And everyone on the floor would start banging their feet, saying it's snowing in New York.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
They would suddenly look down and see baby powder all over their shoes. We even did it to the president. And yes, it was extraordinary. That was one of our greatest clues. The only one who actually got upset was, I think he was an Italian, someone in the Foreign Service for Italy. He was wearing purple, patent leather, velvet shoes. And we doused him with baby powder.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
He was probably never able to wear those shoes again. Anyway, let's get down to business. Yesterday, Mr. Trump was here. He talked about a couple of things. He talked about setting up, you know that the U.S. has a prudent reserve for petroleum, right, in case of war, in case of any kind of a problem. We've got hundreds of
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
I think hundreds of billions of barrels or millions of barrels of oil on reserve in case of a war, in case of a confrontation at some point, because you all know that a majority of the nations that are oil producing nations are not our friends. Venezuela, Iraq, Iran and Saudi Arabia and Russia, of course, the largest producers. So yesterday he did say
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
that he was going to set up a prudent reserve for Bitcoin, right? Which is obviously extraordinary. And I think it's probably given a little bit of the boost to Bitcoin since the election.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Exactly. Isn't that extraordinary? That came this morning. Yeah. Right. And then yesterday, he announced the prudent reserve of Bitcoin.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
So we know like Apple's got hundreds of millions of dollars in cash. And a lot of public companies, obviously, how do they end up displaying earnings or whatever the word is, giving out earnings is by having cash on hand. Some hold cash. It was one of the problems back in the day that everyone was saying, why is Apple holding so much cash? Why don't they give some back to the shareholders?
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Anyway, not what we're talking about today. So that's fascinating. So yes, MicroStrategy, Mike Saylor, Mike Saylor's company, obviously is one of the largest holders. I think all their holdings are in Bitcoin.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
So if you are looking for exposure to the Bitcoin game and you don't have $100,000 to buy in a coin, there are other ETFs, I believe, Beto that trades here on the floor. Obviously, Mara is one. And obviously, MicroStrategy. It's expensive. It's trading for hundreds and 400 bucks, I think, at your share.
Money Rehab with Nicole Lapin
Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
So that's exciting. Take heed of that, right? That's coming from the man who knows everything about derivative play. We've heard about that as respect to AI and the derivative plays that are respective to... Again, there was Nasdaq 20,000 ads, right? And the point is like... Let's think. When we started having this Einstein and Ives conversation, you said two things to me.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
If you're using index based investing, which I love, then you want to make sure you're using an index that has high tracking rate. And so really being able to compare apples to apples is the best way to really measure results as an investor.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
So the idea is to basically put on a piece of paper, here's where I am, here's what I'm trying to do. And based on what I'm trying to do, here are the things I should own. I should have this much in stocks, this much in bonds and so on. And here's how much I'm gonna save and put in these buckets over time. And that marries you to a plan that makes sense for you.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
versus reacting to the market if you start reacting to the market then we're going to make the behavioral mistakes so one of the big ones is recency bias which is people all i remember is what happened recently like with your sports team whether they're you might feel more confident or less confident just based on what you happen to see on tv over the last couple weeks instead of maybe looking at all of the games and all of the totality of what's happened with investing we tend to look at what's happening right now and we magnify it for example
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
2024, the market went up most of the time. Investors became very confident and started throwing more money at the market. During COVID, the market went down. People freaked out. They started taking money out. That was a big mistake. We also have confirmation bias where we get married to certain ideas. This is why some of your conservative listeners, Nicole, might
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
read the wall street journal and watch fox and some of your liberal investors might read the new york times and watch cnn and and we go to this place that reaffirms what we're doing and we ignore the places that disagree with us and the investors do that you own a certain stock you go look for things that validate why you should own that stock people tend not to look for things that tell them they're wrong or they should exit something that they want to keep and so
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
And Warren Buffett famously said, when he buys a stock, he just doesn't look for things on why it will do well, but what could go wrong? And he is really looking for counter opinions. And that's a great way to fight that confirmation bias. And then lastly, another, and we cover a lot more of this in the book, but another one that's very powerful is
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
is the endowment effect, which is once you own something, you don't want to let it go. This is why when you go to a car dealer, they say, hey, do you want to get in the car and go for a drive? Because now you can see yourself owning the car at the jewelry store. They say, hey, go ahead and put these earrings on or put this necklace on because now it feels like it's yours.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
That endowment effect kicks in. And that endowment effect is very powerful. If you own a stock, it takes a lot to get you to want to sell it because you feel very married to it. And so if you can become aware of these biases, it makes it easier to become a disciplined investor and stick to your plan.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
You can't help it. Especially if you bought something that's done well, it becomes very hard to part ways with.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
I think there's so much noise. Politics and social media have really put a lot of people on edge and it's starting to impact decision-making. And I personally see it with the thousands of clients that we work with at Creative. I see it impact the thinking of some of these clients. And I would just say-
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
ignore the noise stand tall let the wind blow all around you make your investing about you and your goals and not who's the president not who's in congress not what someone's saying someone tweeted yesterday it should really be about what are you trying to accomplish what do i need to own to accomplish that and then just put yourself in a pattern where you do it over and over again no matter what is happening and that gives you the absolute highest chance of success
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
I think, so one big thing people talk about is taxes, but really for the last 20 years under Bush and Biden and Trump and Obama, the taxes policy has not changed significantly. Income tax rates have barely moved. Capital gains rates have not moved at all. Really taxes have not changed a lot. And the changes they talk about making are very much on the periphery.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
The other big thing that impacts the economy is interest rates. The president and Congress don't control interest rates. The Federal Reserve does. We're the same Federal Reserve.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
under trump that we had under biden but we do expect rates to come down a little bit more and when they do it tends to be very good for the markets because the cost of companies to borrow to operate goes down and so it has them do well the one thing that's interesting is they've got this committee elon and vivek that are going to be doing apparently cost cutting across the federal bureaucracy so there's a good way to look at this and a bad way to look at this the good way is
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
If they really did that, that would lower a lot of the expenses of the federal government. And the single biggest crisis the United States faces is the federal deficit. It's not debatable at all. It doesn't matter if you talk to a liberal economist or a conservative economist. This is the single greatest threat to the future of the United States is the deficit.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
So cutting federal spending would be positive in that regard. If they really went really over the top and really terminated a lot of people, that would drive unemployment up a little bit. And that can also start to slow down the economy to lose all of this government spending. To me, this is still noise. And as an investor, there's too many things going on in the world.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
These are just a couple things that'll be fun to watch and fun to follow to see how they play out, but shouldn't change the way someone looks at their personal plan.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
I think it's because there's two different groups of people, Nicole. So I think that for the group of people that own stocks and own real estate, or they own stock in a business that they're a partner in, everything's great. There was high inflation and what else inflated? Stocks inflated, the home value inflated, your real estate inflated, your business inflated.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
But the overwhelming majority of Americans, they don't have those things, right? They go to work, they get a paycheck and they're making $50,000 a year or whatever the amount may be. And then they've got their expenses and their expenses went up 30, 40, 50% at the grocery store and housing and taxes and everything else. But their income did not go up as much.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
So we know that for sure that the income inflation for that group was less than their expenses. They are in a severe recession. So the majority of Americans... are going to the grocery store or trying to take a family trip or trying to cover the cost of their car and their property and casualty insurance. Everything is rocketed and their pay is not kept up with it.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
They are in a recession and the rest are in great times. And that's why we have this vibe session. It's two different groups experiencing a very different economy right now.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
The dream scenario is inflation is just under control and we can get wages to rise without the price of all these goods to continue to go up at the same pace. And that would solve the problem. And that's what we're really looking to see happen here. That's what we call the Goldilocks outcome. And very rarely is it not too hot or not too cold.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
I'm sure there will be a few missteps before the Federal Reserve gets it just right.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
It's always great to be with you, Nicole. Happy New Year.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
Great to be back.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
Everyone here is very excited, Nicole, to have you as part of it. You've been an amazing follow. And so it's great to have you in our ecosystem.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
I think that the thing with all New Year's resolutions, especially money ones, is that everyone gets motivated and motivation only gets you so far. Motivation is like just getting the engine started, but it's totally different to keep going and the real way to win isn't motivation, it's the consistency and persistency.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
So the things you can do to put that on your side are to make things automatic because inertia is a pretty powerful force. Netflix knows this, the iPhone knows this, the second that we sign up for something, we're probably gonna stay in it forever. So if you're saying, hey, I'm going to save more going into the new year,
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
Instead of saying, okay, going forward, I'm going to start putting money in my investments, make it automatic. Just do one thing, get motivated enough to have $100 or $1,000, whatever it is, go from your paycheck into an investment account, every paycheck. And when it automatically happens, that will give you the consistency to succeed.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
If you don't automate it, the probability you're going to stick with it is going to be pretty low.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
You have to reverse engineer it. If the goal is to become a millionaire, then you start to back into how much has to be put away to do that. If you're younger, it could be a much smaller amount because you have the biggest advantage any investor has, which is time. If let's see that your math says you've got to save $500 a month to get where you want to go.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
If that's over the next 20 years, you may not have to do 500 a month today, right? It could be a smaller amount today. And as your income grows, make it bigger. So we don't have to start really big. We just have to start now and we have to have it be repeatable. And then we can adjust as time goes on.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
I think it's human nature. So market timing, like you said, predicting highs and lows. A lot of people think I don't market time because I don't put my money in the market and then take my money out of the market. Some people do that. I saw people when President Obama was elected, they went to cash their market timing.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
And there's some people when President Trump got elected the first time they went to cash. And both of those groups made a huge mistake because over the time the market went up. So money going in and out of the market is the most obvious market timing. It's a disaster. It really hurts returns. But a lot of people go, that's not really me. I don't market time.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
But what they do is they say, I'm going to wait to see who wins Congress or who's the next president. Or is there going to be a war? the war in Ukraine going to expand, and then I'll invest. That's market timing. All of those things are falling into that trap. And the problem with market timing is the market has a very big upward bias.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
Over time, the market tends to go up, just like the price of a ticket to Disney World or a meal at Chipotle goes up over time. There might be little brief periods of time where the prices come down, but in general, inflation carries things. So the more you're going in and out of the market, the more likely you are to underperform We know statistically 80, 90% of people that market time lose.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
So the odds you're going to win with that kind of strategy are very low. Once you've identified the goal you're trying to accomplish, it needs to be automatic regardless of where the market is. Just continue to invest, keep buying every pay period that you can.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
I mean, the biggest part's education. So, Nicole, what you said is spot on. Sometimes what looks high now might not be high in the future. And the reason that's the case is one in 19 days, the market hits an all-time high. Very frequent. So a lot of people go, oh, I'm nervous about investing now. It's an all-time high. All-time high is generally the norm.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
the market is usually at or near an all-time high. And so the best way to safeguard is education. If you really understand, hey, the market does not go up and down. The market goes up with brief periods, sometimes severe and dramatic, but brief periods of pullbacks. Just like prices in the grocery store go up and down, they go up. Just over periods of time, they might come down, right?
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
So if you can educate yourself on that, then you automate your savings. That's the best combination of protecting yourself against that market timing mistake.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
So an investor is basically saying, I'm going to buy things, I'm going to hold them for the long run. And a trader is saying, I'm going to buy Coca-Cola today, but next month I'm going to sell it, and then I'm going to buy Pepsi, then I'm going to sell it, then I'm going to buy Nvidia. And so you're constantly moving, buying and selling a variety of stocks.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
The issue with buying and selling stocks is the overwhelming majority of professionals that buy and sell stocks to try to beat the market, lose to the market. So if we're talking about, depending on what time period we want to look at, 70% to 95% of professionals losing the market over a 10-year period, the odds that the regular retail investor is going to beat it are probably significantly worse.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
On top of that, you pay a lot more taxes when you're actively trading. You oftentimes find yourself with pockets of cash that aren't invested while you're trading. You start to add those things and you lag the market significantly.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
even more so this is a kind of an exercise in futility if you're trying to own a bunch of stocks for the long run you want to find a basket of stocks and you want to own them for the long run there's a lot of ways to do that but this idea that you're going to pick and choose and pick and choose and buy and sell you're going to create a lot of taxes you're going to have what we call in the industry cash drag and even despite those things you'll probably underperform the market over time so you spend a lot of time to diminish the probability of doing well
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
That's right. If your own situation, things come up, obviously, we have to place trades to meet your needs if that's the situation. But otherwise, rebalancing or moving from bonds to stocks in a down market, those kinds of moves, those are disciplined. And we're not market timing. We're not buying and selling individual stocks day to day. We're saying, oh, COVID happened. The market went down 35%.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
and I'm with 70% stock and 30 bond, and then my stocks are down, I'm going to rebalance today to get back to 70-30. That kind of trading makes a lot of sense.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
I think a lot of people look at volatility and they confuse that with risk. As one example, they go, oh, a stock market is risky or investing in the S&P 500 is risky because look after 9-11 or the tech bubble or 809 or COVID, it went down 34 to 53%. That's really risky. That's really just volatility. That's things going up and down in price. Risk is really the risk of loss.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
The market went down, it came back and went on to new highs every single time. There's been over 100 market corrections, drops of 10% or more. The average correction is 14%. All 100 plus had the same outcome. The market recovered and went to new highs. It's been dozens of bear markets, a drop of 20% or more. The average one's a 34% drop. Every single one, same exact outcome, recovery, new highs.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
So confusing risk and volatility is one of those measures that I don't think is relevant. And I think it scares people away from investing that otherwise would do very well if they just understood, hey, this happens all the time and you get these recoveries.
Money Rehab with Nicole Lapin
Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
I think when I think about metrics, I'm looking at indexes and trying to compare your returns to indexes. For example, if you're a large cap investor... The S&P 500 is an index of large company US stocks. If you're a small cap investor, the Russell 2000 is an index of small stocks. If you're using a low cost manager, you want to compare them to those indexes.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
Hey everybody, it's me, the Einstein of Wall Street from the floor of the New York Stock Exchange. Ladies and gentlemen, I'm going to be your temporary host sitting in for Nicole Lappin of Money Rehab as she is on maternity leave. We're gonna be doing episode after episode every day of what the heck's going on, giving you a forensic breakdown of what's happening into the market as we end 2024.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
We'll be seeing a lot of you, so stay tuned.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
Three, two, one. Hey everybody, it's me, the Einstein of Wall Street. We are here with Trade Like Einstein. I am Peter Tuchman, and we're here on the floor of the New York Stock Exchange in the balcony. History is made in this building every single day.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
Somebody with my long-term experience, I've been here for 137 years, it is my responsibility to help teach you how to navigate this market successfully. Boom!
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
Hey everybody, it's me, the Einstein of Wall Street. Wow, what a day. This morning, I believe the PPI numbers came in, and they were not as good as we would want. So that definitely set the stage for an interest rate cut, but that also dragged down on the market in some sectors more than others.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
Look, we came in this morning, Mr. Trump, our soon-to-be president, was nominated Person of the Year by Time magazine, and they, in cahoots with the New York Stock Exchange, decided that they would then ring the opening bell
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
and make a party out of it and they sure indeed do that uh you know i've been on the stock exchange for 137 years i've seen you know presidents come and presidents go the last president who i was there for was the last president who was there was bush number one And he and his wife came to the floor, I believe. And no, maybe just him. And then the younger Bush's wife came without him after 9-11.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
But yes, Bush one was there. We ended up powdering his shoes, which is a bit of a gag that we do on the floor of the exchange. But he was the last president to be there. Obama, Clinton, or Mr. Biden, none of them had been down to the floor. So this was a big deal. And so this morning we came in, security was off the charts, as rightly so, two attempted assassinations on Mr. Trump.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
So they basically really needed to set the stage so that there was no chance that, God forbid, anything could happen to the next president. So we had, you know, and also inside the floor of the exchange, it was just set up for, you know, a smooth entry in, a smooth entry out.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
We were sort of, you know, our maneuverability on the floor as brokers was a little bit restricted, but that's okay for an event like this. So be it, so be it. So they honored him upstairs and he came with an incredible entourage. I did send some pictures, hopefully that you will be able to see them. But Mr. Vance, J.D. Vance, the vice president to be, was also there.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
Mr. Trump's wife and daughters were there. And all the CEOs of all the largest hedge brokerage firms were there. David Solomon, head of Goldman, and a number of others, chiefs and chiefs were there. And then a couple of heads of major hedge funds were there. Steve Ackman, who I believe had been a Democrat and had switched parties, was there to support Mr. Trump. He ended up going on CNBC.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
You know, the only thing that was slightly disappointing was that Mr. Musk was not there because he is a big, big added value to this organization. You know, in a way, if you are at all interested in what's going on with tech and AI and all that kind of stuff. So anyway, the first thing they did was honor him in the boardroom, which was amazing. And we were not in for that.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
That was just super strict, the inner, inner circle. And that was cool. And then they came down to the floor and they rang the opening bell. And then they did a little bit of a walk around with restricted maneuvering on the floor, walking and seeing what's going on. but they basically kept people in their spot.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
But what was disappointing was that I kind of anticipated that the market would respond favorably to Mr. Trump being there, and it did not, right? So whether it's the economic data, was the market slightly fatigued or whatnot, but that was the case. We closed down an odd lot. really was an odd line. I think the market's trying to figure itself out.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
I believe we got some more economic data coming in tomorrow. It's kind of getting its footing for Santa Claus to come. I mean, you've got to be able to hear the ring-ding-ding of the sleigh bells and the reindeer, because I feel that they're coming to town. I kind of got, my gut is that the last couple, look, we are on the 12th. Right. So you've got 12 days to Christmas.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
You've got 20 days until the end of the year. And, you know, often you will see window dressing in years where the markets are down. That's surely not this year. We are up 27 percent for the year. You know, what we did have, which was so exciting about yesterday, was that Nasdaq closed at a record high above 20,000. Right. Today, there's a little bit of a pullback.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
So we gave a little bit of it back. But that's amazing. You're talking about stocks, the highest flyers on Wall Street, the Google and Amazon and Netflix and these stocks and a couple more and Apple. closing at record highs, like all-time highs, not 52-week highs, like the top of the top, the cream of the crop, unbelievable. And that's big, that's quite a year, that's an incredible show.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
So that should signify to everybody that this is not a bubble, this is not just window dressing. These are real numbers, real money being put to work, real support, real loyalism as far as those companies go, because those are loyalist companies, right? Amazon, if you're an Amazon buyer, that's what you do. If you're a Netflix watcher, that's what you do.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
If you're an Apple user, that's what you do. And that's how we are. We are the greatest loyal consumer generation, I believe, of all time. When we like a burger, we like Shake Shack. When we like an Uber, that's who we drive with. If we like an Apple, we've got the phone. Computer, it's like what we do in our spare time, what social media we're on.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
If we're an Instagram person, that's where we put our loyalty. And so that's an unbelievable thing. When young people ask me what stocks to invest in, I will often say to them, go to school, high school, college, wherever you are, go to school and ask 10 people that you see in class what sneakers they wear, what computers they use, what they do in their spare time, what social media they're on.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
You know, and really get a sense of their loyalism and where they stand, you know, and you will end up finding that you're going to, and this is no endorsement of any of these companies, but you're going to, you know, and what hamburgers they eat and what coffee do they drink.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
So you're going to hear a Starbucks, you're going to hear a Shake Shack, you're going to hear an Apple, you know, maybe not Nike because it's having a bad patch, but for a while there it was a Nike thing. But, you know, these are the companies that have taken this market higher and higher. They're part of the Magnificent Seven, which is unbelievable.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
So that's what's brought 2024 to where it is, up 27% for the year. In the eyes of so much potential, it's troublesome times. This year could have gone a whole other way, right? But it didn't.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
right we forged forward there were pebbles in our shoes we took them out of our shoes there were bumps in the road we went around those bumps there were wars on the path you know and we moved on through those so i mean you know the markets are resilient people are resilient humans are resilient right we know that from our own lives so anyway today was an extraordinary day from the market's perspective globally whether you like mr trump or not it was an event that will be remembered
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
forever person of the year obviously person of the year is not necessarily somebody who you may think is a good person or a bad person or whatever but somebody who's definitely is forging a new space as forging a new path and is changing the world in many ways some for the good some for the bad but
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
You know, what an amazing day, what an amazing year, what an amazing life, what an amazing market, volatility, liquidity, talking markets, talking, you know, it's a beautiful day to be alive. You know, I try to wake up with some gratitude in my attitude. I try and go trade the market. I try and like to share and educate, motivate and inspire as many people as I can along this journey.
Money Rehab with Nicole Lapin
Behind the Scenes of Trump's Visit to the Stock Exchange
and surround myself with people who are really good at what they do and are inspired and motivated to do great things and learn and teach and share their stories with anybody. So I love you all. Have a wonderful night. I'm signing off for the night. Bing bong, shotzi, I'm out of here.