11.22.22: Audio automatically transcribed by Sonix

11.22.22: 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.

Producer:
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:
Welcome, everybody, to the Thanksgiving weekend edition of Another Money Show. I am your host, Anthony Corio. That's J.R. Rotchford. We got Jim, whose last name I'll never be able to pronounce in the background. We are taking a break from our day-to-day as financial advisors with Rotchford and Associates, a fully independent fourth-generation family practice right here in the greater Phoenix area to bring you some things you may not be hearing on those other financial stations. And we are aware that the last thing you need is Another Money Show. But we appreciate you being here. So we are recording this before Thanksgiving. You will be listening to this after Thanksgiving. So I hope you had a great Thanksgiving and hopefully it went well. And you don't have to find your estate planning attorney afterwards to change up your will.

J.R. Rotchford:
Yeah, I mean, I've always heard that the number one day for activity for changing wills and trusts is the Monday after Thanksgiving. These attorneys get real busy with setting appointments, you know, and a lot of that the last few years. I mean, the political polarization has really added to that. I mean, you've got people orange man, good, orange man, bad. I mean, yeah. So families hate each other now, which is cool.

Anthony Carrao:
I like to think if you haven't cut me out of the will yet, that you probably won't after Thanksgiving. Maybe I just avoid you and Mom for the holidays this year.

J.R. Rotchford:
No, We cut you out a long time ago. We just say anything. We want it to be a surprise, so.

Anthony Carrao:
We'll have nothing to worry about then I got nothing to gain. I love this.

J.R. Rotchford:
And by the way, I mean, you've been in the office long enough. Have you noticed that sometimes when somebody passes away, the. The kids and our kids are in their sixties and seventies usually, you know, we're in Sun City. The kids, they're calling pretty rapidly on how to get that money transfer to their name. We're like, Why don't you let the body get cold? Why don't you get the death certificates in and then we'll talk about this? But that's you know, this is Thanksgiving weekend, so I promise I'll be upbeat. You know, the only thing I want to really convey today is that we're going to have a stock market crash and then we're going to have a bank bail in and then we're going to usher in the digital currency. But so I'm going to stay upbeat about it. You know, we have 31 trillion in debt right on the books.

Anthony Carrao:
So just the casual 31 trillion or GDP's not even that high.

J.R. Rotchford:
What is a trillion? I mean, I put down a number and then follow it with 12 zeros and try to wrap your mind around that. So but I'm going to be upbeat about all my negativity today.

Anthony Carrao:
So you're off to a great start. To be fair, I didn't kind of softball that up with, you know. The wills and trusts being changed after the holidays. I was still super surprised when you told me that, but it really doesn't surprise me at all.

J.R. Rotchford:
No, I've heard that over the years from a few different attorneys, and I've heard that basically on Monday the phone's ringing. They set up appointments and then the next couple of weeks they get busy making changes. So it's kind of funny. I mean, you know, people are funny.

Anthony Carrao:
Well, I have to talk to Mike next door. I've got a really good estate planning attorney if you guys need one. We talk about that all the time. We do a lot more than just regular financial planning, but getting your estate in order. Very, very important.

J.R. Rotchford:
Yeah, for sure. And we see people in their sixties and seventies and they've never done that. It's like how how do you not think one day that's going to be needed? You know, the reason that you do estate planning, it's not for you, you know, it's for those you love. It's for the people that that have to deal with your stuff when you're gone.

Anthony Carrao:
Well, in that case, it doesn't matter because you're already dead. So what's the matter? What happens to all your stuff?

J.R. Rotchford:
It's very selfish. That's very selfish. It matters greatly. And, you know, Thanksgiving weekend, Why don't we do this? Why don't we spend the next 47, 48, whatever minutes just talking about what we're thankful for? So all you are going to talk about is me. And I understand that actually, that'll get kind of boring for the listening audience. So let's talk about financial stuff. You know, why don't we do this? Why don't we jump right into what, you know, that I have on my plate to talk about and then we'll get to whatever you want to talk about, you know, the boring financial stuff. Jim. Good work, Jim. Gerri, terrible idea. I think I can say the last name pretty easily. He just popped in there. Aren't we thankful for our producer? Yes, we are. Jim, if you keep this train rolling, we are happy. Speaking of trains rolling, do you know that December 5th is supposed to be the big railroad strike?

Anthony Carrao:
I heard December 9th.

J.R. Rotchford:
I heard the fifth. I've heard from three different sources. You know, I've got inside sources a lot of times when I'm not sure what to say. I'll just call Ellen and some of the people I know. Yeah. No, I'm hearing.

Anthony Carrao:
Just tweet out to him, get ahold of him real quickly.

J.R. Rotchford:
I said I need to have a little blue checkmark next to my name. What is that?

Anthony Carrao:
I do want to. I'm glad you said that, but I'll come back to let's talk about that railroad strike.

J.R. Rotchford:
Well, there's you know, there's not a lot to talk about because we don't know what's going to happen yet. We brought it up in an episode a couple of months ago. You know, we're always trying to be proactive, not reactive and the possibility of a railroad strike. I think that I mean, a lot of people are going to be blindsided. We don't think about the railroads. Most of us don't travel by rail anymore. We don't think about, you know, 60% of our goods are coming by railroad. You know, how do you think this stuff gets to the trucks and then the trucks get them to the store? You know, it's mostly railroad. So if this happens and we've been not worried about it, but we've been watching it for months. Then we were told it was averted one one Friday morning. Alison It's like, well, you know, the government got involved. You know, we we got by it. No harm, no foul. Well, we talked, you and I, the next day, talk to a guy that works for a railroad company and he said it's not averted. He said that they just they they placated people enough to put this off for a while, but he didn't think it was over. And sure enough, I mean, here we come again.

Anthony Carrao:
Yeah, it sounds like I think five of the 12 unions right now are not agreeing to the proposals. But they've decided that if even one union can't come to terms, that they're all going to strike. So it's not it doesn't matter that. Seven of the 12 are on good terms because it only takes one, which I mean.

J.R. Rotchford:
Yeah, yeah. I mean, you're hoping for a 5149 victory and everything keeps rolling on and that's not looking like the case. So and you know what's funny? I mean, today is what's today the 22nd when we're recording this. Today's a Tuesday. We're actually a day early on recording today. So the stock market so far, I mean, it's only 9:00 Arizona time, but so far the stock market's flying. Dow Jones is up 300 points. You know, this third do over, as I'm calling it. This is our third opportunity to stop, stop buying the dips, start selling the peaks. This is our third do over. So as I go through my travels and I and I read about FDX and I read about railroad strikes and I read about potential recession next year and food shortages, you know, it's always next year. It's never right now. It's always what's coming that's coming. So but, you know, the market's flying high. How can the market have such a disconnect with reality is my question. You know, I've been saying the market's manipulated. I've been saying that for years.

J.R. Rotchford:
The Dow Jones being only 30 companies, that's that's baloney. So a company underperforms, they take it out, put a new one in. You know, I know we've covered that in the past. It's a rigged game, high frequency trading computers, offshore accounts, tax breaks. You know, it's the whole thing's rigged. But when you look at so many things on the table, which is what I really want to get covered, and then we can go whatever direction you want. When you look at the things that are going on, it just doesn't make sense. I mean, this market and anybody that tells you, well, it's forward thinking, really, come on, you know, how does the market know where we're going to be in six months? I mean, I'm reading about potential droughts, water rationing, food shortages, and the market thinks that's all okay. You know, credit card debt is going through the roof. You know, auto loans, the default rates going up, the houses, you know, there's the most expensive interest rates in, what, 20 years? You know, we could have a housing slowdown.

Anthony Carrao:
Credit card debt. The Fed in St Louis, you can look up the graph there. But it's been insane to see the U-shape from March of 2020. The steady growth of credit card debt since the early 2000s compared to personal savings and personal savings spiked in March of 2020. With all this free money that got printed, that got spent through 2021. But now personal savings as a percentage of disposable income is down to 3.1%. Or credit card debt is 35%. It's insane. The differential between the two. Right now, people have no money. They only have debt. And that's what over a decade of near zero interest rates should be. Right. It allows you to get all this fake money. But now that interest rates are skyrocketing. Now you have to pay for your debts. And can people afford that?

J.R. Rotchford:
Well, and they can right now. I mean, right now people are hobbling. People are getting late on payments. You know, I read an article yesterday that talked about realtors. You know, everything's changing so fast. A year ago, we were talking about how all the realtors were saying, you know, especially around here, this time it's different. We have Oregon, Washington, California, moving in so we don't have to worry. Well, they're starting to worry now. I mean, there's there's a lot of people who are also in the advertising is going back up, the networking, the marketing. You've got the article I read. I don't know how to verify this. I guess I need to poke further. It said that over 35% of all realtors are late on their rent, their office rent by more than 60 days. A third of the realtors are late on the rent. Think of the irony that you're a realtor and you're not paying your your rent there. So crazy. I mean.

Anthony Carrao:
Think of. Because I get the real estate market, I know that it's pretty stable and that this time is different. For the most part, you have a lot more cash buyers, but everyone seems to forget that 2008 housing was the catalyst that brought down everything else. This time and night might not necessarily be housing. I wouldn't say that it is housing, but if all the dominoes around you are falling in, this will be a casualty at some point or another. So. Well, that's that's it for a first segment that went by very, very fast. So when we come back, I think J.R. is going to try to talk about the ten pillars. Maybe he brings that up again. So we'll see if we get a try. Happy Thanksgiving. Happy family time. In the meantime, you can check us out at Another Money Show dot com. AnotherMoneyShow.com You can reach out to us directly at Team@AnotherMoneyShow.com And you can listen to all of our previous shows Wherever you subscribe to podcasts, check out Another Money Show and we'll be right back.

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Producer:
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J.R. Rotchford:
Welcome back to Another Money Show. As Anthony says, just what you need, Another Money Show. But you know, this one is different. I heard one of our one of our commercials during the break said this one is different. It may actually keep you awake. You know, it is more current events than it is financial. I'm always trying to be very careful that it doesn't go too far political. You've got a whole ton of political shows, so we don't need to add to it. I can tell you, though, the politics of this country, the polarization, how things are heated, Do you do you realize today is November 22nd and we still don't have our elections certified? I mean, that's that's kind of a that's a little bit weird. So I know, you know, people talk about Florida. Florida has more population and they were settled that night. We're still going you know, there's a lot of uncertainty, a lot of weirdness around our elections. You know, sooner or later, the politics are going to affect your finances. Huge. Did I just say finances instead of finances? But you know what I mean.

Anthony Carrao:
You just said we're not going to get too political. And then like. All right, let me immediately get political.

J.R. Rotchford:
Well, that's what I did. That's what I do. You know, when you when we do an outline, you know, Jim does a professional outline for us. And one day I am going to start trying to follow it. I'll I'll let you follow it. So but I do an outline every week, too, and I don't think I have ever stuck to it more than half of the time. And I know it drives you crazy, but that's I think that's part of I'm so endearing to you because I'm me.

Anthony Carrao:
So that's why I've put you out of my will.

J.R. Rotchford:
Yes. Understandable. I would have gotten one of your eight or nine broken down cars and now I'm not going to get one. I'm sad. Back to what I really want to talk about today because I am somewhat confused. You know, this the market activity, the uncertainty you think you would think people would lay low, you would think people would be very nervous about all the things on the table. Why aren't they? Is it one of my favorite things? Normalcy bias. You just can't see it? Or is it that people see things are wrong but they don't want to face it? Is it more comfortable just not to think about it? But that's not usually the best strategy. I mean, there's a lot of people that think that we are on the verge of losing our world. Reserve currency, our fiat currency is is at the end of its lifespan. You know, how are we going to look in two years, five years, ten years, You know, are we going towards Venezuela where there's going to be no food and medicine and, you know, hyperinflation, railroads?

Anthony Carrao:
That could be a thing. I mean, I've heard there have been issues getting stuff out of China again because of COVID. Yeah.

J.R. Rotchford:
Oh, that's right. I mean, we forget to talk about COVID, but that's back. I've got a friend of mine who's going in today for testing. It's like, Oh, for Pete's sake, you know, and we've kind of said this. I mean, the new normal. I'm not a huge fan of that term, but the new normal, it's like, well, we better start living with it, you know? And I don't know why this part has become so political, but there are a lot of weird deaths of people that are younger and nobody wants to tie vaccines to whether or not that's what's going on. I mean, is it you know, marijuana is legal now in the state of Arizona. Is that it? Is it climate change? I mean, why are younger people dying? I heard this morning one of the original Power Rangers passed away. And I mean, I didn't watch Power Rangers, so I don't know much about it. But he was 49 years of age. And it's like I'm hearing more and more stories about that. So that's weird. They do. But, you know, the bad news is, like you said, the mortality tables are changing. I mean, did we peak? Did we live as long as we live and now we're going the other way. But I'm the.

Anthony Carrao:
Great time to invest in a life insurance for loved ones and family members. Right? Generational wealth transfer. Now is the time to have that conversation.

J.R. Rotchford:
And we have really good solutions for that. Yeah, it's funny. The old days of being your own bank are coming back because the insurance rates are rising. You know, the day of transferring tax free generational wealth. So come see us. We will sit down and do a plan for you. How do you like that?

Anthony Carrao:
Your own bank? I'm still. It's one of those. We talk about setting a foundation. You can diversify and do those kinds of things, but life insurance is meant to be death benefit. There are some living benefits and maybe you can take advantage of that. But I wouldn't put financial planning around that. Not until you set a base. Still doesn't really make sense to me.

J.R. Rotchford:
Well, and part of it, you know, the rich get richer, the poor hover, and the middle class is shrinking. How do the rich get richer? You know, either they, you know, pass a business along and they sell a business. A big part of how we see it is through life insurance. You know, if you have four kids and each of your four kids is on board, for them to be millionaires when you pass and they pay your premiums every month, and when you die, you leave $2 million, they each get a half million dollars. You've just set them up for a base. They can use their half million dollars and buy a rental property or a duplex or a business or a lifetime annuity, or they can do something to change.

Anthony Carrao:
The life of get out of debt and pay off their student loans.

J.R. Rotchford:
Yes, And it's funny how cash flow and income is more impactful when you don't have debt and student loans and credit card debt. So, you.

Anthony Carrao:
Know, nearly as much income if you don't have as much outgoing.

J.R. Rotchford:
Well, with that. Well, yeah. I mean, Dave Ramsey, Junior. Yes, we are. And then when you have this increased income, you have opportunities. If the stock market collapses and and it still looks like we're going to make it as a country and not throw rocks at each other, you can buy in while everybody else is, you know, doesn't have the money to buy in. One of the things about being a conservative financial practice, we are very safety first than growth. We always know people have to protect and grow their money, but we believe in that order. You know, people like we have a client who I went to her hundredth birthday party a few months back and then unfortunately a few weeks back, I went to her celebration of life. She had a lifetime fixed annuity with a good, solid insurance company. She outlived her money. I don't want to misquote it, but I don't know, probably six, seven years ago. In other words, all the money she put into it, she started generating her income. And then six or seven years before she passed away, her money ran out. Well, she was getting about $2,000 a month and that the last six or seven years, that was 100% profit to her. You know, the only thing she had to pay taxes on it because it was all growth. Well, I'll take 2000 a month for just the tax bill all day long. And the thing is, we watch in some city our planning how it works. 20 years later, you're getting to see like that planning for that woman. You're getting to see how it looks 20 years later. And it's amazing. I mean, the safety works in the long run.

Anthony Carrao:
You know, And let's clarify, too, because she didn't necessarily outlive her money. The money she put in got spent down. But by setting up these pensions, you're guaranteed for life. So even though all of the money she put in, all of the interest she earned technically got spent down, it didn't disappear. She continued to earn that income for life.

J.R. Rotchford:
So what other vehicle can you do that? Can you do that with a stock or a bond or a CD or a digital currency? You know, things have volatility if you feel like you're safe in CD's. I mean, obviously you had about a 15 year run with no interest on them, but when the money's out, it's out. So if she had done CD laddering and Bond laddering and the stuff that a lot of people are familiar with, you know, I got her at my father and I got her into annuity laddering. And that when we did that, you know, when I started doing that with my father 20 something years ago, that wasn't common, you know, all of the big wire houses were like, Oh, no, you do bond laddering, you do CD laddering. There's no such thing as annuity laddering or the heck there isn't. And this woman is a perfect example of how it can work. You know, we have ultra short term fixed products, we have mid term and we have long term. She was one of the best examples I've ever seen of long term planning. So why don't we do this? Because things are going so fast today. Why don't we take a break right now? And then when we come back, we're going to talk a little bit about the ten pillars We haven't referenced the name in a while. We talk about the ten pillars all the time, but we haven't really itemized them and kind of gone through them in a while. So I would love to knock that out today and kind of remind people about the big picture. So make sure you reach out to us team at Another Money Show dot com or give us a call. 623 523 0444. Ask us questions, email a question we will answer the next week. If we don't know the answer, we'll make one up, but we will make sure we address your question. If you want us to use your name, we will. If you don't, we won't, but we'll go from there. Thank you so much for being with us on this holiday weekend and we'll talk to you in a minute.

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. Thank you so much for being with us. I don't know about you, but we are having a wonderful time today, so don't answer that, please.

Anthony Carrao:
So I got to say, speaking of you mean you went into that last break asking for questions from listeners and, you know, even though this is not recorded live and we're pre-recording in that in-between period, we actually got a text from somebody asking financial questions. So maybe we should just answer that on the air.

J.R. Rotchford:
And I like that he texted both of us because he knows we focus in our practice. We focus on two different things to a certain degree. So let me read it and then we'll answer it. I'm going to answer it first, then you answer it, and then we're going to go back to our carefully sculptured outline that I like.

Anthony Carrao:
Talking about those pillars.

J.R. Rotchford:
We're probably not going to know, but it's Thanksgiving.

Anthony Carrao:
What's the question?

J.R. Rotchford:
Tell me right here. Should we make up a fake name or. There's no need. We'll just say a guy texted us.

Anthony Carrao:
I wouldn't assume a gender, but go on.

J.R. Rotchford:
Can you explain how the stock market is going up and which stock to buy? Also, since the crypto bad guy was caught and now it's legitimate and holding, when do I buy again and which one is best? So there's two questions in there. One is on trying to time the market and the second one is on, I would say, more traditional financial product and then the new generation of financial products. So my answer is going to be general yours. I'm sure it will be more detailed. I would say it is a really, really sketchy time to buy either one, not just because I'm always half empty. The glass is always half empty. The volatility, first of all, is huge when when you don't know what to do, a lot of times the best answer do nothing. So which stock to buy right now? I would say if you if you have extra money the first thing look at your time horizon. I mean, you know, if you've got ten or 20 years to hold the stock, you know, obviously you can sell it earlier if it doubles or whatnot. But if you have time to hold it, it might not be a bad time. We've had some some retraction this year.

J.R. Rotchford:
But the thing is, you know, you said which stock I would go back to diversification. I would look more if you're going to do that and look at sectors, I mean, you know, the geopolitical situation is such that you might not be too bad off looking at military stocks, Northrop Grumman, whatever, You know, Lockheed Martin, I don't know. And then the crypto question, crypto is, is such an unknown. You know, Bitcoin hit another couple of year low this morning. It's I guess it went under 15,000 which still I mean for something that you don't own for something if you lose your password year out. I mean to me I wouldn't touch it but that's me. I mean my thinking is let some of the dust settle. Let's really see how big FTX gets. Let's see if it brings down other cryptos. You know, if you look at what's coming with the digital currency, it's not fantasy anymore. They're testing it now as we speak. They started last week in this country, testing it. So it's coming. I would say give it, I don't know, three months, six months. Let's kind of see how crypto looks. So for me, I wouldn't buy any of it. What say you on these things?

Anthony Carrao:
All right. So to start with, explain why the stock market is going up. Well, that's I mean, it's the same manipulation things we've talked about in the past. I have a theory on it, and I think a lot of it has to do with shorting these stocks. You know, example what happened with AMC and with GameStop, as you have so many people shorting the market that it's forcing people to cover their shorts and to buy into it. So they're borrowing more money to buy into the stock market, to raise stocks to just ungodly numbers. So I think part of that is the reason which stock to buy. I mean, Jared kind of said it, we're still being on cash heavy. If you're going to buy anything in stocks, you know, you got to be looking out. Well, it's a bubble market. The last 30 years have worked in bubbles, so it doesn't matter how good of an opportunity a stock may be right now, if we're going to sit here and preach that this could be another bubble crash that's going to bring down everything. Remember Warren Buffett, Berkshire Hathaway lost about 50% in 2008, too. Like it doesn't matter how good of an investor you are. When this shit sinks, it sinks everything, right?

J.R. Rotchford:
So you almost get a bad word there. I was like, Yeah, brief that out later. Oh, shit. Ship is going to sink.

Anthony Carrao:
I know. I'm sure there's this saying for rising tides and lowering ships. I don't. I'm not that elegant with my words. But I mean, a bubble burst affects everything. So if you're going to buy a stock, make sure it's something you want and make sure that you're willing to, you know, take massive losses on it should that occur and then be ready to buy back in, buy what's lower. If you buy something now that you like and it starts dipping, you know, buy more. Don't sell, don't lock in your losses. That's the opposite of good financial planning. So. All right. We ran out of time again. Again, you know, have not gone to those pillars, but maybe in segment four. But there's more to this question that I'm not quite finished with, especially this part about crypto. I'm kind of excited to answer that one. So we will be back with my answer to this question and more after a few short messages. And in the meantime, check us out at Another Money Show dot com. Listen to Another Money Show wherever you subscribe to podcast and reach out directly to us with your own questions at Team@AnotherMoneyShow.com .

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

Anthony Carrao:
Welcome back. You're listening to Another Money Show Anthoney Carrao J.R. Rotchford. And we are answering questions on air. The question was, can you explain how the stock market is going up and which stock to buy? Also, since the crypto bad guy was caught and now it's legitimate and holding, when do I buy again and which one is best? So on the stock market going up, it's pure manipulation. We've said that before. There is really no reason for it. Again, it could start dropping today. It could start dropping tomorrow and not stop dropping for the next year, two years. And that would not surprise me because I accept that there's no foundation at all for this stock market which stock to buy, stuff you like, but stuff you have to expect losses on. Again, if we're talking about a bubble market, you're going to lose on everything. Absolutely everything. Nothing goes up when bubbles burst like that. So be ready for losses and be ready to buy in more. So can you make money on stocks in the meantime? Absolutely, because the stock market's been going up. Could it continue to go up? Absolutely. Should it continue to go up, though, is a whole other question. I would say no, it probably shouldn't.

Anthony Carrao:
When we talk about stocks to buy. Michael Burry right from the Big Short genius investor, he sold all of his stocks except for one a few months ago. Now he's since, I think, added five or six to his portfolio. But what he added is actually he's bullish on the prison sector, privately owned prisons. That's where he put all of his money in. And I think if you're talking from a morality standpoint, you guys mentioned the Ave Maria funds in the in the past. No booze, no alcohol, no weapons, stuff like that. I think that one's more of a moral investment for me. Privatize prisons seems pretty monstrous. So I don't know that that's something I would invest in, but that's coming from a very smart investor, putting all his eggs in one basket kind of thing. So just an interesting tidbit there. But let me get to the second part of this question. Since the crypto bad guy got caught and is now the market's now legitimate and holding. What's to say it's legitimate and holding now because one bad guy got caught? You don't think that there's thousands. I mean, cryptocurrency is fake money. It was Shiba Inu and Dogecoin was a joke. The guys that created it said it was a joke, yet people made millions on this Ponzi scheme.

Anthony Carrao:
So to think that there's only one and because this guy got caught, it's not legitimate. No, I think none of this is legitimate. I think it's all a joke. And we've already talked about the US is working on their own digital currency. Do you honestly think when the Fed comes out that they're going to allow anybody to have competition with them? Right now they think of this as a joke, so they're not worried. But do you think when it's real competition that they're going to allow for any of these privatized cryptocurrencies to be a thing? And do you think that they can be legitimate? I mean, the whole part is to be out of the government and out of reach. But all that does is lead to more fraud. And there is government oversight. They've come through and confiscated so many crypto wallets, too. So to think that there isn't, I mean, is pretty naive to. So I don't think it's legitimate. I don't think that it's holding. I don't think there's just one bad actor in this. I think it's a industry that's preying on people looking for something new. And there was a lot of money to be made, and I don't know that that will continue.

J.R. Rotchford:
Or what moves? Money, fear and greed. I mean, if you're afraid, you sell your stuff. If you're greedy, you buy stuff. You know, the whole digital currency. That seems to me like a little bit of fear because you're afraid of the dollar. You know, you're afraid of the banks, you're afraid of the stocks. But the lion's share, that is greed. You know, all these people that bought into Bitcoin in 2014, 15 and 16 that became multimillionaires, that's you hear about those little stories, but you forget there's people that piled in on December, I think it was 2017, you know, it hit 20,000 people were piling in. And then they the next two years, they lost their shirt. So, yeah, a lot of weirdness.

Anthony Carrao:
That's a lot of chasing. I mean, people didn't really understand it. So when your people were getting it for pennies, you know, in dollars, it was kind of a joke. It was something that they wanted to see become mainstream. And then it did. It became mainstream and people made money off of it. But now it's just I know Beanie Babies is still my favorite example. People loved Beanie Babies and there was a ton of money made, but what is it worth now?

J.R. Rotchford:
Yep. No, you're right. It's history. Tulips. I mean, it's Beanie Babies was one example.

Anthony Carrao:
Yeah. The tulip bubble still. I mean, we talked about the second Wall Street movie, Michael Douglas last week, and they had a big scene talking about the tulip bubble in the first financial bubble. And, you know, you could use these tulip bulbs and buy houses. You know, talking about a flower used a flower to buy a house. Just absolutely outrageous. I mean, we didn't talk about it last week. Exactly. I think J.R. brought it up. But the movie Boom, bust, boom, I would love for every single person listening to go out and watch that movie. I'm not really sure if it's streaming anymore. If you can buy it on Amazon, check it on on YouTube. Amazing movie from the guys that did the animation of Monty Python. So such a well-put-together documentary, but it talks about human history and we just we don't change. We always say this time is different. This time is different. It's never different. It's never different. So are you going to learn from the past or not? And that's what this whole radio program is for. We're spending our money. We're spending our time to get on the air to tell people that they need to be prepared for whatever's coming next, because everybody else is just going to try to sell you and make money while they can, while everything's hot, telling you there's going to be wonderful buying opportunities at some point and we just haven't seen them.

J.R. Rotchford:
No, I have to agree with you. And we are in such uncertain times. I mean, the unchartered territory is we've never seen anything like this in this country or the world.

Anthony Carrao:
Speaking of other really enjoyable movies and kind of our thought on it, we're really big on income over assets. We see it time and time again. Assets fluctuate. You can make money, but you could also lose a bunch of money. But having excess income allows you to make financial mistakes because that way you know you have income coming in. There's another wonderful documentary called The Baby Boomer Dilemma. We have free passes for that movie so that you can watch it online. If you reach out to us at team at Another Money Show, we will get one of those passes out to you. You can watch that movie also. Wonderful. I wish I had passes available to Boom, Bust, Boom, because I really do love that movie. So I think. Did we answer his question?

J.R. Rotchford:
All right. I think we beat it to death. Yeah. If you're looking at buying anything right now, you're not really seeing the big picture. You know, Just. Just wait. Give a little while. So you know me. January 1st, 2023, The light switch goes on and everything's safe again.

Anthony Carrao:
So we're number fifth or ninth now.

J.R. Rotchford:
Or who knows? It's October 9th was for the digital currency test. Yeah. All these different dates.

Anthony Carrao:
The dates.

J.R. Rotchford:
Right

J.R. Rotchford:
No, I won't even date my wife, so I'm not going to get any more dates. So why don't we do this? We have eaten up most of the time. And this one I'm going to blame on you because you just ran with that way longer than you needed to.

Anthony Carrao:
Pillers in the first segment, and then you didn't talk about in the second or the third. This is on you.

J.R. Rotchford:
All right. Ten pillars. That was a beautiful segue. Anthony, I appreciate how you just drove that home. So the ten pillars, when we started this show, we had a friend slash client. Who made a list. He wanted to know the ten. Main things that we're worried about that he should watch such a simple concept, but we never put it in writing before. So we did it. We did it for him and we wrote down ten things that are big things that everybody can watch. And then he knew us well enough to know that we're also watching what could be coming our way, that other people are not watching. Those are the black Swan events. You know, March of 2020, it was COVID. So, you know, right now we we the ten big things and I want to list them. I don't want to go too deep on any one of them because it would take a full show to really unpack them. But I want to talk about the ten pillars and let people know every one. You know, when we started the show, it was on the table. It's still on the table. They need to be watched and we still have to watch. For blacks, one event, I mean, North Korea testing another ICBM last week. You know, it makes it in a 24 hour news cycle and then it's gone magically. So sooner or later there could be a misstep. And then all of this will it will shock us.

Anthony Carrao:
So I think in the ten pillars is really what brings out the Black Swan event, because it's not like the Black Swan event will be. You cover so much in those ten pillars that if you watch closely you'll see the Black Swan event occurring before most. But there's just more that you need to pay attention to.

J.R. Rotchford:
Well, and the Black Swan event will be a subset of one of the pillars. It will have to do with one of these things. So let's jump into it. The first one is debt and deficit. You know, the government is is saying how they're lowering the deficit. That's great. But on December 1st of 2021, not even a year ago, the national debt was 30 trillion. And then on, let's see, on February of 2022, earlier this year, it tipped to 30 trillion. Now it's at 31 and one half trillion. So it's going up rapidly. It sooner or later we may just default. So that's the debt and the deficit. Pretty easy to understand. The second one we've already covered earlier in this episode, financial markets, volatility and manipulation. I mean, it's you know, the financial markets are sketchy, to say the least. The third pillar is taxes. Not a lot to say there. They're going up, you know, sorry. People used to debate whether or not tax will be higher or lower when you're in retirement. Well, I got bad news for you. They're going to be higher. We're broke. Sorry. The rich. The rich don't pay taxes. The poor don't pay taxes. So if you're in the middle class and you're listening to this show, bad news for you, you're who they want to shrink. The fourth pillar, inflation. I guess we don't have to say much about that. You know, the the only thing is, is it going to start going down like it did last month or are we heading towards, you know, do we just get a reprieve? Gas prices.

Anthony Carrao:
It's not necessarily going down. It's just not as bad as predicted. It's still terrible. But I love that they use that as justification for the market going up. It was like, oh, the CPI increase wasn't nearly as bad. No, it's still terrible. So that's not justification to think everything's getting better.

J.R. Rotchford:
Agreed. And my whole thing is the only thing that really the Black Swan event could be do we go towards hyperinflation and then watch out because this country is not ready for it? The fifth pillar, health care, you know, are we going towards Medicare for All? You know, when you look at Medicaid, Social Security, disability, those programs are all they're broke. When you look at the long term care insurance world, it's blown up over the last 15 years. And I am rattling through these really quickly anyone's you have questions. I will address it with you.

Anthony Carrao:
You got 2 minutes left.

J.R. Rotchford:
Oh, then I'll hurry. So number six is unfunded and underfunded liabilities. Social Security is a big Ponzi scheme. Pensions, both private and public are broke. Pension guarantee fund broke, big influx of money with COVID dollars drying up now. So they're broke. So number seven, the erosion of the middle class. I think that's pretty self-explanatory. You used to be if you had $1,000,000, you're fine. Now, I would say it's closer to 3 to 5 million to get by. What's coming? The eighth one is social media. You know, we're in such an instant gratification society. As soon as Facebook says there's a toilet paper shortage, watch out, get to the store quickly. And my fear is.

Anthony Carrao:
Two stocks dropping to. We need to bring that up again. The fake Twitter accounts laid into these pharmaceutical companies And Lockheed Martin losing money.

J.R. Rotchford:
Yep. No, it's it's crazy. Two more. The ninth one is geopolitical missteps. You know, for example, Russia and Ukraine, China and Taiwan, Russia and China versus the United States, North Korea versus whomever, Iran versus Israel, USA, Saudi Arabia. So all that stuff, I mean, the whole world is uncertain right now. And lastly, the one that that, you know, one day, unfortunately for you, you could have to deal with it. The polarization, you know, civil war, red states and blue states. I mean, you know, could we actually split up as a country? Yeah. So I have a lot of reasons why I can say we will. But, you know, I hate that I rushed through that so much. But in future episodes, we can break down some of those and dig deeper. For today, why don't we wrap it up and just let's thank you so much for being with us.

Anthony Carrao:
Happy Thanksgiving weekend.

J.R. Rotchford:
Yeah. Happy Thanksgiving. We're thankful for you. So we'll see you next week. Make sure you reach out to us. 623 523 0444 or Team@AnotherMoneyShow.com And follow us. Tell people about us. Help us grow. We want to get the word out. Thanks so much. Take care.

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

Producer:
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. Investments 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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