JR and Anthony discuss why becoming independent from the stock market could be important for your personal finances and wealth. Plus, JR talks about the US reaching its debt ceiling, Democrats delaying a bill banning congressional stock trading and a story of the FBI seizing money from a bank.

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market update

10.6.22: Audio automatically transcribed by Sonix

10.6.22: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Producer: Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs, and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy. This is another money show. Get set for another hour of the latest financial information and economic news affecting your bottom line. J.r. and Anthony are committed to helping more Americans like you optimize their income, reduce their tax risk, and reach financial freedom. So let's start the show. Here are your hosts, Anthony Carrao and J.R. Rotchford.

Anthony Carrao: Here we are, your host, Anthony Carrao, and J.R. Rotchford, hosts of Another Money Show and Financial Advisors with Rotchford and Associates, a fully independent fourth generation family practice right here in Phoenix. And we appreciate you being here. We know the last thing you need is another money show. But we appreciate you listening on noon Saturdays right here at 960, The Patriot. So we've been starting off with more financial news before we get into all the the doom and gloom with J.R. And we do have some of that for you today. But what I wanted to start with is just the market's obnoxious. In the last couple of weeks, we're starting to see some of this growth. And I think I mentioned it. I was listening to one of our episodes from a few weeks ago, and I sat here and complained about market headlines, and I'm going to do the exact same today because it's absolutely obnoxious. So we record on Wednesdays. So last Wednesday, when we were recording last week's show on September 28th, it said from MarketWatch, the Dow closes up nearly 550 points in rebound from bear market lows as bond yields fall after Bank of England intervention. What does that really tell me about what's going on in the market? It's saying that it's up okay.

Anthony Carrao: It's a rebound from a bear market to you of one one good day and now all of a sudden everything in the world is fixed and the market's wonderful again, because that's exactly what it makes it sound like. But what's the justification? Why is the the why is the market going up? And they're telling us it's rebounding because bond yields are falling. Is that a good thing? No, it's not a good thing. It's saying the Bank of England is intervening on their crisis there with quantitative easing. You know who else use quantitative easing? The Fed. How is that working out for us? So they printed 40% of our money two years ago and now we're hit with massive inflation. You know, the market, the economy, two totally different things. But the economy has been trashed for the last two years and we're just now feeling it in the market. So I said when I was making fun of market headlines a few weeks ago, I said, well, just wait, because it doesn't matter that the market is up today because if you wait till tomorrow, it'll be down as if none of the reasons exist the day before. So the next day on the 29th, it says S&P books worst day in more than two weeks.

Anthony Carrao: Stocks finished sharply Thursday. It says investors are reacting Thursday to a flurry of economic data that suggests no letup in the Federal Reserve's plan to keep increasing rates to fight inflation. So they're just celebrating how great the market was the day before. Now, the following day, Oh, no, we're going to have to keep fighting inflation. We're going to have to keep raising rates. This is the next day. So if you're following the markets day to day and what everybody's celebrating and the reasoning behind why the market is up, it's just it's all trash. I mean, right now we're recording on the 5th of October. Yesterday was a massive day up in the market, says Dow ends 826 points higher Tuesday. Stocks gain big back-to-back gains. This is two days in a row of massive increases. However, you go through the article, it says some investors anticipate the Federal Reserve may back off the aggressive pace of rate hikes. So the market's skyrocketing on speculation when just the last week they said the market was going down for the exact same reason that they're telling me that we're having these skyrocketing days for the last two days.

J.R. Rotchford: Is it my turn to interject? Because, you know, I'm going to have something to say about this. So a couple of thoughts. One, yes, today is October 5th, October 3rd and October 4th, Monday and Tuesday, the markets were huge. And yes, I found the same thing you did. They're saying that the Fed may back off an interest rate rising. So I got a question. People that are asking, are we are we going to get a soft landing? A hard landing? First of all, I don't know what that means. I'm not in a plane very often. I don't know what that means. I can tell you what. Pick your poison. Do you want the stock market to have some pain or do you want inflation to stay here? We have a no win situation. So this this one day up, one day down. It makes people crazy. You shouldn't micro time your long term money anyway but get to the base of what you said. You know, the Dow is my least favorite financial market for a reason. It's 30 companies, you know. Let that sink in. Anybody that hasn't heard that before, you think the main stock market, you see the red and the green little ticker on your screen, the Dow Jones Industrial Average, the main benchmark you hear about that is 30 blue chip companies. Those are pretty easy to manipulate with offshore accounts, stock buybacks. You know, it's all a crock. If they take a weighted average of the Dow, the Nasdaq, the Russell, you know, different markets, that would make more sense. But all of them.

Anthony Carrao: Never really need a weighted average. I mean, the S&P 500, those 500 companies are approximately 80% of the market share. I mean, follow the S&P. That's going to have practically everything. I mean, S&P has most of the NASDAQ companies in there, too.

J.R. Rotchford: So then let's get rid of the Dow. I mean, let's let's use that. But it's still all going to be manipulatable. It's still going to be riddled with stock buyback issues. It's it's plus, I mean, the whole thing, when you when you look at this stuff, when you look at the financial markets, everything that can turn so quickly in one day, is that really where you want to put your future stability? Your whole thing, since you've been in the office, is people should focus on income over assets because assets can go down quickly. Income you need you need income. You know, when you look at money, it goes up a lot slower than it goes down. I've heard the catchy little phrases, you know, money takes the escalator up, the elevator down, you know, look at 2000, look at 2008, Look at so far, 2022. It really I mean, you know, these markets down 20, 30% in the year 2022. That's a lot of impact on your your 41k, your mutual funds, your stocks and bonds for your future. So, you know, what do you tell people? What are you telling people to do? You brought up foundation a couple of weeks ago. I mean, what's that?

Anthony Carrao: I mean, why at the end of the day, I mean, I'm sitting here and I'm complaining about the market because that's what we get all of our questions on. But truthfully, my financial future isn't based on the market at all. I mean, there's some lingering factors, you know, because the falling market will affect other things that will eventually affect me. But my personal financial situation, I couldn't care less if the market stays up or down because I've put myself in a position where it's not going to change my lifestyle. Nothing about my life changes if the market goes down. And that's how I want our clients to be set up. They shouldn't have to worry about the day to day on. The market's going up, it's going down. If the market goes up, then yeah, absolutely. They can benefit. It'd be nice to. But if the market goes down, I don't want them worried at all. I mean, that's how I've personally set up my financial situation and it's why would you ever feel like you should set up your financial situation and be dependent on somebody else's choices? Because if you're listening to this show, you don't choose whether or not the stock market goes up or down. You're dependent on all the other manipulation, everything else going on in the background. You know, it's one thing to take Warren Buffett's advice, but it's another to be in his position. He can change the trajectory of a stock if he decides he's going to purchase it. You put in $5,000 into Apple stock is not going to change their financial position. It's not going to make other people want to buy in and raise the price of that stock. So it's setting up your financial future to be dependent on other people's choices or you said in years up so that you can take control and you don't have to be worried about these other things going on in the world.

J.R. Rotchford: Make sense. Sounds like you're the calm voice of reason and I like that. And you practice what you preach. I know at your age it's unusual to be safer than not. You know, you're diversified. You know, I know you have different asset classes. I know you focused on safety. First, you focus on income. I know you also have a stock account. I mean, we talk amongst ourselves about what to buy and what to sell and all that.

Anthony Carrao: So, yeah, my stock account, I mean, I don't think I've made really anything over the last few years, a lot of gold and silver, because I'm still I think when we get closer and closer to that digital currency and it being the. You know what we're actually going to start feeling. I think there will be a jump there. I invested in pot stocks, you know, and there's been a massive bubble there, but it's still not federally legal. I think when that day comes, I think the weed industry will be bigger than booze. And booze is pretty massive, you know, and some miscellaneous stuff here and there. But what I've put into, I don't expect to sell or get rid of or buy more of in the immediate future. This is looking five, ten, 30 years out because it doesn't affect me. I don't have enough money in the market to change my situation. If everything crashed today, my lifestyle doesn't change and I feel like I'm much happier for that. I mean, we have people that have talked to us, listen to the show and some clients that have massive amounts in the market and there are constant tension. They're constantly freaking out any sort of volatility. And it becomes, you know. Pressure on your lifestyle. I mean, money is important, but first is your health. And if money is going to cause a dip in your health, maybe change some of those factors.

J.R. Rotchford: Yeah, but people, they're not taught to do what you're saying. I mean, we've always been taught certain rules. What if the game changed? What if the rules are not valid anymore? So one person, one couple, one family at a time. We have to get to people. That's why we do this show. We're trying to get people to think differently than what they've been taught. And this is you know, this is a great day to talk about this. You know why? Because as we're celebrating, the last two days have been so great. Yesterday, you said the Dow was up 800 points. You know, we also tipped the national debt, tipped $31 trillion. Oh, who cares? I mean, you know, we can just keep going forever. I don't know. I mean, if you look at history, no country ever has. Maybe we're going to be the exception. But, you know, $31 trillion, that's 31 with 12 zeros behind it. It's not a number we can fathom, but it is.

Anthony Carrao: Isnt there a Congressional cap, too, at 31.4?

J.R. Rotchford: I have no idea.

Anthony Carrao: supposedly the ceiling. I read an article where they're celebrating Biden's deficit moving forward, but I was like, where all these bills have been about spending money. You know, this Inflation Reduction Act was about spending money and not had nothing to do with inflation. So where is this deficit that we're all celebrating and why does our debt keep increasing time and time again if we're running at a surplus right now?

J.R. Rotchford: Well, and let me tie this into something real quick. I want to look that up with the with the limit because I know how government works. So if there's a cap, if there's a ceiling, if there's a floor, whatever limits there are, they just move them. Of course they will. You know, we ran out of money last Friday. Do you know that we hit our debt ceiling last Friday?

Anthony Carrao: And they're talking about closing down Congress. But I think we've got an yeah, you've got an article. You want to talk about that, but we've got to head to break, come back, and we will talk about more congressional deficits, overspending. But in the meantime, you can find us at another money show dot come. Listen to another money show wherever you subscribe to podcast or reach out to us directly at team at anothermoneyshowdotcom.

Producer: Remember all of JR and Anthony's listeners receive a free financial consultation just for listening to the show visit another money show dot com to learn more and schedule an appointment. Thanks for listening to another money show and subscribing wherever you listen to podcasts.

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J.R. Rotchford: Welcome back to Another Money Show. Thank you so much for taking time out of your weekend to hang out with us. We appreciate it. So before the break, we we brought up the fact that our country hit the debt ceiling again last week. You probably didn't hear about it. You know, I watch a lot of news. I flip channels. I try to listen to everything I can, you know, managing money into the future without a crystal ball. The one thing I want to make sure I do is is keep helping people to be proactive and not reactive. I think to do that, you have to be really well informed. I mean, if you don't know that there are warships near Alaska and all of a sudden a problem happens because of a warship near Alaska and you don't know about that, That's not good. I mean, you know what I'm doing. Avoiding watching the masked singer and Dancing with the Stars and watching news. Sometimes it really sucks, but it's the right thing to do because I don't like surprises. On Friday, we ran into the debt ceiling again. They had to do an emergency measure. Apparently, it got passed on Thursday night. That's great. So we can raise the debt ceiling again. That's great. We're going to keep doing that until we actually default as a nation. And I understand that.

J.R. Rotchford: I mean, there's no turning back. You know, part of the problem that people are not talking about with the inflation, with the rising interest rates, with everything going on, we are printing, we're borrowing, we're trying to pay the interest on a debt we can never repay. Well, when the interest rates were half what they are now, we were not being able to pay the interest on the debt. Now, as the interest rates have doubled, doesn't that mean that we're going to tip or we're going to default or rent it problems twice as fast? Just a thought. Back to the debt ceiling. They did pass the emergency measure. The problem with the debt ceiling emergency measure, it was to keep the United States government operable, parks service, all these different agencies. You know what they put in it, Anthony? More money for Ukraine. This is a measure to keep the country going. The new package would set aside $3 billion for training, equipment, weapons and intelligence support for Ukrainian forces, as well as 4.5 billion for the economic support fund, which is intended to help the Ukrainian government continue to function. That line right there, we're helping the Ukrainian government continue to function as our debt ceiling is reached. Am I the only one that finds this? It's not funny to me anymore. It's maddening. This is insane. Stop me. Yeah.

Anthony Carrao: I mean, we we don't have money to function, so now we're printing and giving or digging ourselves in a deeper hole to help another failing country.

J.R. Rotchford: Let that sink in when they when they sneak money for Ukraine into the New Green Deal, you know, the Inflation Reduction Act. That has nothing to do with inflation reduction or acting when they sneak money in for Ukraine there it sucks. I mean, help the homeless people in Phoenix help the veterans. Let's let's do some other things here in our country first. But when when we hit the debt ceiling and we have to get that figured out and you sneak money in for a foreign country to run their government, that's that's problematic.

Anthony Carrao: Well, none of these bills are ever what they say they are.

J.R. Rotchford: I know, but this one's worse than usual. You got to admit that. I mean, helping another country's government stay running while our government shutting down, That's. That's problematic. I'm sorry. So with that behind us, shall we move on? Do you want let's let's keep going. Let's do some more articles on the same vein. Another article. Surprise. Democrats stall the bill banning the congressional stock trading. You do realize, right, that some of these haves versus the have nots, they're not in our normal system structure. They're not waiting for Social Security, Medicare, Medicaid. They have their own health insurance. They have their own retirement plans. Do you also know that they get some pretty sweet insider trading deals? They get some of their own stock train deals? You're a politician. You represent me. You are supposed to serve your country and then go back to your job as a doctor or a lawyer or whatever you are. This is crazy. You know, I worked for a financial firm. I don't know if I can say the name or not. I mean, I guess why not? I worked for Parkland Financial and with Parkland when I had my securities license there, I also had a Scottrade account, which has since turned into TD Ameritrade, which has since gone to Schwab. But anyway, here nor there, I had a Scottrade account and my broker dealer used to get statements, so I had to pay like two bucks a month. Every time I got my monthly statement, they got a copy so they could watch me, I guess to make sure I'm flying, right? I don't know.

J.R. Rotchford: I mean, it's my you know, I have a personal life, too. I thought if I make money, I can buy whatever stocks I want. So they had to watch it. So then they wound up and it was the timing. It was around the fiduciary ruling. So I don't know if that had something to do with it. They said I had to close it. So I'm like, I don't understand. I'm like, You get my statements. You know, I'm not day trading. You know, I'm investing that trading. I mean, this is this is just part of my retirement. This is me saving money for my future. They. He said, I can seek an exemption. I tried. I didn't get it. I had to close my account. And looking back, one of the stocks, I had 11 different penny stocks, one of them and I looked years ago. So I don't know what's doing now. That thing actually started hitting. So I actually could be and I had 250,000 shares at a fraction of a penny. And my goal with that stock was get it to $1 a share and then sell it. I'm not greedy. I'll put in $400 and make 250,000 and get out, you know, like everybody else. I want to make good money. So but the government can do it. I can't do it as a private citizen just because of where I work, but they can do it so well.

Anthony Carrao: That's been bothering me too, because a lot of the it's you know, we say this show is not political. It's a little as it's moment.

J.R. Rotchford: It's about money.

Anthony Carrao: Now, Nancy Pelosi is always like the target when it comes to insider trading. But it's a lot of Republicans have been caught doing stuff like this, too. And the problem is we have all this outrage that the Senate's not doing it because they're the ones profiting. So of course, they're not going to pass these bills. But, you know, the Republicans were in charge for a long time, too, and they never passed these bills either. They're all in it together. It doesn't matter the side of the aisle they all want to make money off.

J.R. Rotchford: I, I have been saying for decades there's nothing left but the haves versus the have nots. No, I am not making this partisan politics. You know, Nancy Pelosi is a great poster child. Her and her husband. Her husband is quite a quite a creature. I'd like to go out and have a cocktail with them. But, you know, we'll get an Uber this time. But it's insane. And what's so funny is that funny? You know, I am going to be missing one day. The van is going to pull up and I will be missing. But it's just funny. The this is what they said. The answer is it's supposedly in this bill covered public officials would be required to divest their financial investments or place them in a qualified blind trust upon entering government service. Well, the blind trust thing is horse. You know what? Because once they get into office, they never leave. So they're going to have a blind trust and not know what their family owns. You know. How long has Joe Biden been in office? 50, 50 years or so. So, you know, you go into public service. Well, Nancy's been there a long time, too. And yes, a lot of the Republicans do. Mitch McConnell, come on, go get your but and.

Anthony Carrao: They all have blind trust now, like that's nothing new. And obviously there's ways around that. And the big thing, too, is the individual stocks. You know, let them have ETFs, mutual funds, whatever, but they're hand picking stocks for companies that they know are going to blow up because of laws that they're written.

J.R. Rotchford: Yes, they write the legislation. They know what's coming.

Anthony Carrao: Get in the contracts. It's one thing to be like, all right, we're going to pass try to pass an infrastructure bill. Let me get an ETF in energy for solar or natural gas or infrastructure. Steel like it's going to broaden the horizons. But they're picking and choosing individual companies that they know are going to benefit.

J.R. Rotchford: It is crooked. But let's do this. Let's take a break. While we're happy and having fun. We'll take a break. As always, you can find us at team at another Money show dot come or give us a call. 623 523 0444. And after the break, we're going to talk about more governmental corruption. So stay with us.

Producer: You're listening to Another Money Show to learn more and contact J.R. and Anthony. Visit another money show dot com. You're listening to Another Money Show.

J.R. Rotchford: Welcome back to another money show with J.R. Rotchford Anthony Carreo. And we have Jim. You haven't heard us say the one and only Sam Davis while he's been traveling and vacationing. He's still there. He's still behind the scenes. But we have a new one and only. I don't know if Jim is permanent. I have real trouble saying his last name. I think it's . I don't know if I slaughter that. Too bad. But Jim has been great to us, too. So we do have the one and only Jim with us today. He keeps us on track. You know, behind the scenes we talk about one and onlys. I would rant and rave for 6 hours straight. I don't know that I would take a break. I don't know that I would breathe. Anthony would stay the calm voice of reason, the financial expert. So but these guys behind the scenes, they tell us when there's 2 minutes to go and there's 1 minutes ago. They kind of keep this stuff so it's not crazy and off the rails. So we greatly appreciate this. Anyway, before the break, we told you that we want to talk about more governmental shenanigans. I don't know how smart it is on this financial show to be getting too far into conspiracy theory things. So that's why I just steal other people's stuff. I just I read a lot of articles. I listen to a lot of shows, because if they've already covered it, I feel like at least when I get picked up by the van, I'll be with these people that I find interesting. So. So I get this article on the 28th of September last week. Msn.com I mean, you're used to me saying ZeroHedge and Epic Times, Epoch Times, what it is you're used to be saying stuff that's more open to the negative side of the news, you know, stuff that's verifying some of the conspiracy theories.

J.R. Rotchford: But this is on MSN mainstream news. It was just on my desktop newsfeed. The title of this. I had to slow down and read it twice. Fbi I don't know if that is that the Federal Federal Bureau of Investigation. Are those the people that are raiding homes, you know, the pillow guy and all this? I shouldn't laugh. So FBI seizes 86 million, $86 million from safe deposit boxes and then it says permanently confiscated this article. It's pretty lengthy. It doesn't say anything about due process. It doesn't say anything about rights that we have in this country. And by the way, Anthony, you and I have been telling people for years do not have a safe deposit box. If you have to buy a good fire rated safe, make sure you don't have a post tension slab bolted down to your floor in your house. Fill it so it's heavy. Do that. But, you know, we're afraid the banks are going to close their doors. You know, they put the rules in place to do a bailout in 2014. It's been actively on the table ever since. So we're nearing a decade of of waiting for that to happen. So don't have a safe deposit box to begin with, as my advice. But anyway, so these feds, they rummaged through the personal belongings. Some of the people that they raided, a jazz saxophone player, an interior designer, a retired doctor to century city lawyers, a flooring contractor, as you see from my little lineup of whose boxes they went into. It's a wide.

Anthony Carrao: Criminals. It's a list of them. Yeah. It doesn't trust any of these people. Jazz musicians smoking that jazz lettuce.

J.R. Rotchford: So the FBI, they took photos of items like password lists, credit cards, prenuptial agreements, pay stubs, immigration and vaccination records, heirlooms, bank statements, even a will. What is it or do with money laundering? What does my vaccination record have to do with me laundering money and being a drug lord? I'm not sure. Newly unsealed court documents have shown the FBI agents misled the judge who signed the warrants to raid the safe deposit box. The FBI is misleading a judge to get in these.

Anthony Carrao: Imagine that.

J.R. Rotchford: That's well, but it's pretty problematic. This country better wake up. And, you know, we're about to have 87,000 IRS agents. You know, really are are they just going to worry about the billionaires are going to worry about us. They didn't disclose the fact that they planned on permanently confiscating everything inside every box that had at least $5,000 in cash or goods. So I'm not I don't understand. I thought if you take something from me, I mean, you usually you have due process. You know, we do have a Constitution, Bill of rights amendments.

Anthony Carrao: We. Yeah. Isn't that the Fourth Amendment? you against unreasonable searches and seizures?

J.R. Rotchford: Look at you. Good man. Little channeling your inner Randy Miller Jr. Good man. So, you know, putting that aside, once you find me not guilty and I'm just a saxophone player, can I have my stuff back? Is that is that on the table?

Anthony Carrao: I mean, civil forfeiture has been a huge issue for a very, very long time where they you don't even have to be convicted. You could go to trial. There may not even be a trial. And the government just keeps your stuff. You know, this is this is a big a huge problem that's been going on for decades. You know, this isn't anything new. I mean, this is a massive newest case, but this isn't anything new. They've been doing this for a long time. It's just terrifying.

J.R. Rotchford: It's very terrifying. And it's again, with all of our pillars, it's so many things are coming at once. I mean, it'd be one thing, you know, if we have to worry about one thing, we're financial people. If we sat down with a couple and we give them ten different financial plans. All Very good, very perfect. They're not going to pick one. Not because they're not all brilliant, but because they're afraid to make a mistake. You know, all these articles, they're all. Tied in with financial matters and they're all important. But we need to take a break again. Believe it or not, why don't we do this? Let's keep going on this headline type stuff. Let's let's come back. I've got another you know, actually an article that we started last week. I want to dip into that again in the last segment, too. We talked about universal basic income. I want to finish up that up today with you. So I know. Let's do this. Let's take a break. We'll come back and we'll get into that. Thanks so much for being with us, as always. And you can find us at another Money show or email us team at another Money show dot com. Thanks.

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Producer: This is Another Money Show. Except this one's different. This one will actually keep you awake.

Anthony Carrao: All right, We are back. You're listening to another money show and we're discussing unreasonable search and seizures, which apparently the Fourth Amendment does not protect us from anymore. So if you had money in a bank vault or what are those called the.

J.R. Rotchford: Safe deposit box.

Anthony Carrao: Safety deposit boxes at this bank in LA talking about millions being confiscated without a trial, without a conviction. So, I mean, that's kind of terrifying, right? We sit here in our hole. Our whole job is to kind of give you financial advice and let you know about the things going on in the world that could affect your financial future. But I don't know. Do we have a way to protect people from the government just coming in and taking it? Is there. I don't know if we've ever really planned around that, but it's you know, it's something that could happen.

J.R. Rotchford: Well, it seems I mean, if you really dig into what's going on in this country, it seems like it's definitely happening. It seems like this is all real and getting more real. You know, I can't let go of this 87,000 IRS agents because I don't understand it. I mean, you know, they're talking about doubling the workforce. I mean, that that should terrify people, to use your words. What if they're a security force? What if everything we're saying is right? It's it seems so hard to believe. You know, I bring up normalcy bias. You talk about people, the stuff that that I mostly I'll blame me talk about. It's uncomfortable. It's a lot easier not to think about it, but it's all lining up so well. I mean, I feel like we're going to have a huge stock market correction. I think what we've had so far this year, I think we're due for another 50 or 60% on top of it. You know, I mean, I don't have a crystal ball. I don't know if it's going to start today or next week, but I don't think we're done. There's too many problems in the world. You know, gas going back up, the midterms, all this stuff going on, it's like it's not looking good. And then I do believe they are going to close the doors of the bank. I think they have to. We've been tossing around articles to each other the last day or two on derivatives. You know, obviously, we're not going to get off track enough to go on derivatives today. But if anybody ever looks up derivatives and they see the scope, the monetary amount in derivatives, it will shock you. And then my first question to people, do all the research you can and then explain to me in layman's terms, tell me what a derivative is. And the more you read, the more confusing it gets. You can't put your finger on it, but there's a lot of real money in it.

Anthony Carrao: I mean, derivatives aren't a bad thing to bring up right now. Credit Sweets bank. I mean, that's a pretty big name there at the lowest point that their stocks ever been at last week. They're talking about liquidating assets and they're calling clients to say, don't worry. And if a bank is calling you to tell you, don't worry, that's usually something to worry about. But in these articles about them, they're talking about the credit default swaps. I mean, this could be another Lehman Brothers incident. This could be the catalyst to start tipping everywhere else. I mean, you talk about derivatives and the banks have was it quadrillions of dollars in derivatives? Correct. The problem with again, I cannot stress this enough, the stock market is absolute trash because it's not you buying shares of a company. If the company does well, you do well. If the company does bad, wait it out, sell your shares. If you need the liquidity, it's all gambling. It's all gambling. None that you don't have shares of a company. You have shares of a share of a share that's being traded as a package to another company that's being loaned out, to another company that's being traded as a different package somewhere else. It's it's all manipulation isn't even as strong enough word because it's derivative.

J.R. Rotchford: You know that every single day more like me.

Anthony Carrao: Absolutely nothing that was derivative was the class. I failed in college in my engineering program. That's what derivatives are. They make no sense. It's so complicated. That was, oh, Lafayette's rule. And Oh, my God, that was my that was my worst class. I think I got like a D minus. Maybe they were just generous and let me pass that class because I had absolutely no idea what was going on. So those are derivatives, okay.

J.R. Rotchford: And now I understand a little bit less than I did 5 minutes ago. Thank you for that.

Anthony Carrao: Yeah, that's the more you learn about derivatives, the less it makes sense that that movie, The Big Short, did a really, really good job of explaining it in simple terms. They explained a lot of really complex, complex financial situations in really simple terms. But there was a scene at a poker table with Selena Gomez, I think another big actor, but essentially they're playing blackjack, right? Blackjack is a simple game. It's you against the dealer. Think of the stock market is blackjack like you're buying a share of a company that that's it it's that simple. But now somebody standing behind them is betting on whether or not they think the person sitting on the table is going to beat the dealer. Now somebody else behind that guy is betting on whether or not he thinks his bet. See, even been trying to explain it in a simple term. I'm already getting confused. So the guy betting on the guy at the table, somebody else is betting on that guy and then it's just this chain. So now all of a sudden, instead of money being transacted between the blackjack player and the blackjack dealer, now that win or loss is being transacted hundreds of times across the board because it's a bet on top of a bet. On top of a bet on top of a bet. That's why the stock market is gambling and not investing.

J.R. Rotchford: And the stock market. When you say it's gambling, for most people, it's way too important. You know, I've heard the term legalized gambling. You know, gambling, I think of casinos, at least a casino, there might be drinks, there's bells and whistles and feeds into your ad and OK'ed legalized gambling. You know, really, that's what you want your retirement plans in. So the whole thing it's yeah it's not good.

Anthony Carrao: Yeah and that's how we've our whole financial picture retirement our conversation everywhere revolves around the stock market and I don't know how much more information I can give you to prove that it's not what you think it is. And we have people out there basing their entire financial future on this system that's corrupt and you don't have to. That's the thing is you don't have to. And everybody has it in their mind that that's the only way to invest and it's the only way. But again, you watch what the markets do in the ups and downs. And are you stressed out or are you excited or are you capturing these gains or you profiting on other people's losses? Like, you know, is that what you want to go into retirement focusing on? Or do you want to just live your life and not be bothered by the mess that this country is in?

J.R. Rotchford: No, I, I agree. I mean, and I watch our appointments and we always believe in diversification. We always think there's a place to try to keep pace with inflation, you know? But yeah, I mean, we definitely are a safe based practice. I had a client for years, at least 15 years. Her name, I'm going to use the name Robin just to protect the innocent. Robin When I was new in the industry, she wanted to help with her 401k. She had a couple of old four one K's, so we had some work to do Her thing with the 401k, I'll use that as the example. She did the same thing with the money that I managed with mutual funds. She had this money in the four and K always kept it in the money market or the stable value fund. Then her contributions every other Friday or whatever it was, she would go as aggressive as humanly possible. She would take the 2050 Target fund or whatever was the most aggressive fund. I would help her with a mix of small cap, midcap, all this, and then every single quarter she would take any profit she made and she would put it right back into the money market, the stable value she did this year after year. And it wasn't traditional financial planning. It wasn't based on her date of birth. It wasn't. It was it was just it was under the radar. She when she had a down quarter, she didn't have money to sleep over. So what, she's still buying in, She's dollar cost averaging. She's safeguarding what she has repeatedly. And it worked like a charm when she finally retired, I don't know, probably seven, eight years ago. She she put everything into safe stuff and it worked. Genius. And why don't people do it? Because nobody is telling them how to do it. Nobody's presenting it. Well, we are. I mean, we've been talking to people about their old form of KS. Make sure you know what you have. Make sure you know is your risk, your fees, What are your.

Anthony Carrao: Options for MSN Money? I mean, there's so many articles about just don't be dumb, keep dumping money into the market, keep putting money into the market, keep feeding this Ponzi scheme. You know, that's nobody tells you how to save your money. And apparently savings could be a thing of the past. If we get this digital currency and they start adding an expiration date on it like they're doing in China. So maybe that's a story for another time, but they can't stress that you either work for your money or you have your money work for you. And I'm sorry, but if you're listening to this, you're probably in the you have to work for your money. Granted, you might invest in stuff. You might have dividends coming in, you might have bonds that are paying different yields. But that's still probably not enough for you to live off of. You probably don't have ten houses and you're living off of renters. You have to have money coming in. You have to constantly getting money to come in and you have to be saving that money that does come in. Otherwise, you find yourself in that same boat. It doesn't matter if you have $1,000,000 in assets, because if those assets change in value and you're down to 200,000, we'll have you set a foundation. Do you have enough income come in each month that your assets don't really matter because you're just going to build them up anyways? Or do you have to completely readjust your strategy because you've just lost all this money dependent on other people's actions? So speaking of devastation and consequences, what was the other one you want you wanted to talk about? Hurricane Ian, he said.

J.R. Rotchford: Yeah, and I don't ever want to do a false tease for people. Let's take a whole segment next week. So see, you've got to stay with us at least another week to talk about universal basic income. I want to air that out.

Anthony Carrao: Next Week or you won't.

J.R. Rotchford: Be Oh, then let's do it in two weeks, because we have to do this together, because we see it from two different sides of the aisle. So we need to do that together. So Hurricane Ian, you know, a lot of what I love about another money show is is, you know, everything is financially related. There's nothing I can't argue is not you know, it's not financial hurricane Ian it's interesting. I lived for a short period of time in North Fort Myers, right on the Caloosahatchee River. Then I lived in Cape Coral for a little while. You know, my sister and I had a condo there. So I'm familiar with Lee County. I'm familiar with the area. My mom lived in Punta Gorda, Sarasota. You know, it's sad. It's I mean, the whole thing is devastating. But now we're getting to the money conversation. You know, there's trucks rolling up, you know, there's fuel, there's all the stuff, but there's also FEMA and there's governmental, you know, assistance. Again, So I'm hearing the last couple of days on the news, for example, the vice president is coming out and making this a a different issue than the loss of life, the loss of structure, talking about how we have to give the money. Here's the money flowing again as we hit 31 trillion in debt. We have to give the money to underserved communities and people first. And as that sinks in, I'm like, What? What are you doing? What are you doing? If if you're picking people by their color or by their financial demographics, be careful with that. This is a natural disaster.

J.R. Rotchford: You know, this this isn't your political you know, your political lineup that you're you're picking people that will vote for you. You got to be careful with this. And I look at the pillars. You know, my last the 10th pillar is on civil unrest and civil war. And I'm looking at the world and I'm seeing the polarization between people that are vacc non vaxxed, gun control, non abortion non, you know, red versus blue haves versus have nots. It's getting shocking. And now we're taking a natural disaster and you're going to stir people up. You're going to have people like me that are saying, you know, you may think that, you know, there's a term in the military, you have to have a need to know you're on a need to know basis. If the government thinks certain people need to get the FEMA money first, just do it. You know, don't go out and do speeches because you're going to anger part of the country and they're going to hear, what are you doing? Take care of people. Just get out there and help people stop trying to pit us against each other. Any thoughts on anything? I it just it gets me I'm so angry. I'm angry that they're telling veterans and active duty military to get on food stamps. By the way, this week I'm also hearing there's a raise in the food stamp program where the average family is going to go from $800 a month to 900 a month. So, you know, I don't know when the coffers run dry with all of our assistance programs, but be careful.

Anthony Carrao: You know, they're already there.

J.R. Rotchford: They're going to tip sooner or later. You know, I hate to say this, but we're running out of time again. You know, these weeks fly by. I hope people are enjoying this like we are. You know, we're always here for you. If we can sit down with you, we'll be glad to look at your statements. We'll be glad to fine tune all of our thoughts and fears for you. So thank you for being with us.

Anthony Carrao: There is no no minimums, no cost for appointments, nothing to lose by getting a second opinion with us. I mean, you already know that our our focus is on saving your money and being as conservative as possible. So if that's your mindset with your funds, too, you can reach out to us at team at another Money show. Find us at another Money Show or subscribe to our podcast at anywhere you subscribe to podcast. So that's it for us. We will see you next Saturday at noon right here on 960. The Patriot.

Producer: Thanks for listening to Another Money show. You deserve to work with a private wealth management firm that will strategically work to protect your hard earned assets to schedule your free no obligation consultation. Visit AnotherMoneyShow.com. Investment Advisory Services offered through Brookstone Capital Management, LLC BCM A registered investment advisor, BCM and Rotchford Financial are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investment involve risk and, unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.

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