In this week’s edition of Wealthion’s Weekly Market Recap, Andrew Brill shares the most compelling moments from our expert guests this week. Rick Rule explains gold’s 20% surge and the economic policies behind it, Steve Hanke discusses why a shrinking U.S. money supply signals a looming recession, and Jared Dillian warns of a potential private equity bubble. Plus, Andrew Perillo offers advice on managing your investments during downturns.
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Andrew Brill 0:00 Hello and welcome to wealthions. Weekly market recap. I'm your host, Andrew brill, the market hinge this week on the words of Fed Chairman Powell, who spoke in Jackson Hole Wyoming, gave us signals about what the next Fed meeting could bring. Let's hear what our experts spoke about this week on wealthion, when it comes to talking about gold, Sorrentino media going, there are few better than Rick Rule. He joined us this week and talked about how government decisions affect the price of gold. He also talked about the real problem with the economy and how to protect yourself. Rick also touched on the political pressure Jerome Powell is now feeling James Connor 0:42 So Rick, we finally have something to celebrate, and that is the move in gold. It's finally come out of this long hibernation, and it's up over 20% on the year. And there's a few reasons why, and the primary one is because of the stupidity of governments. And you and I always have these conversations, and you've said numerous times that governments spend recklessly, governments print money, governments impose taxes and ensure governments screw things up. So when you look at the current actions of the government and the current state of the economy, why is this good for the price of gold? Rick Rule 1:16 Well, sadly, I think the actions are very good for the price of gold. Not so good for the countries. If you look at your country, your Prime Minister believes that the budget will balance itself. Meanwhile, he doesn't believe that there's a business case for Canadian natural gas, despite the fact that his customers do this type of narrative stupidity, sadly, is good for gold. If you look at my country, I mean, I need to say this will piss off a lot of your viewers. I won't vote for any of the Three Stooges, not for Kennedy, not for Trump, not for Harris. All of them are basically trying to bribe voters with their own money. And the victim is, of course, the unborn. They build up debts when they need to. They engage in quantitative easing, which, if you did, it would be called counterfeiting. All of that is good for gold. Gold does well when investors are concerned about the maintenance of their purchasing power in fiat currency denominated issuers, people in Canada and people in the United States who aren't concerned about the performance of Fiat denominated instruments are people who aren't paying attention. I would take issue with one thing you said, Jimmy, which is to say that gold is up this year. I began systematic buying of gold again in 1998 that was a little early, two years early, to be exact. But gold, since 2000 that is to say, in this century, is up about eight and a half percent, compounded a year for 24 years, gold, for me, has done is exactly what I wanted it to. There's a subset of speculators that own gold owns gold, not because they're afraid, but because they're hoping that gold is going to repeat its performance of the seven. Performance of the 70s, or its performance 2000 to 2010 that is, they're looking for a hyperbolic move. But I would suggest that in the context of investors with a sense of history, a millennium of history, that gold is doing and has done, precisely what you would want it to do. I'm afraid that the rate of appreciation is going to increase. I say afraid because crises and confidence, particularly deserved. Crises and confidence, which I think we're having in the United States and Canada, disrupt the rest of your life. I would prefer that my gold holdings went down in price and the security around the rest of my life increased, but that's not on offer in a politicized world like we live in. James Connor 3:47 So you touched on the debt levels, and I want to just expand this conversation a little bit. And the federal debt now stands at $35 trillion that's well documented. It's growing by $1 trillion every 100 days. The interest on that debt is a trillion dollars a year. That's also going to increase as we go forward. And debt as a percentage of GDP is around 125% now. And I want to get your views on how all this ends. Rick Rule 4:13 Well, obviously not Well, there is a real difference between narrative and arithmetic that people argue over what the money should be spent on. They never seem to argue about leaving the money with the people who earned it to begin with. But the numbers that you mentioned, the 35 trillion, as ugly as that number is, isn't the real problem. The real problem is the net present value of unfunded liabilities around entitlements, Medicare, Medicaid, Social Security, military pensions, government pensions. That number, by the most conservative estimate out there, which is the Congressional Budget Office, exceeds $100 trillion and that number is increasing between four and a half percent and 5% compounded. Right? Every year we are not paying down those obligations, they are going to have to be rescheduled. If you look at our aggregate debt, which is to say the unfunded liabilities, plus the on balance sheet liabilities that that number is $140 trillion less $6 trillion on the Fed's balance sheet itself a product of counterfeiting quantitative easing. And as you say, we aren't servicing the on balance sheet liability or the off balance sheet liability. In fact, the aggregate increase in those liabilities is in excess of $6 trillion a year. Now it's fashionable in both your country and my country to say, tax the rich. Make it go away by taxing the rich. It's interesting to note in the United States that the aggregate net worth of American billionaires is $5.6 trillion and dollars. That's enough to handle the deficit for two years. It absolutely positively doesn't matter. Bernie tack Bernie, what's his name? Bernie has suggested that minor revisions of the tax code could raise $5 billion over 10 years in an economy where the deficit exceeds $6 trillion a year. The problem is not revenue. The problem is spending, and nobody on either side of the border seems to care about it. What is the way out? The way out is inflating away the net present value of the obligations. Just exactly what the United States did the decade of the 70s. They reduced the purchasing power of the US dollar by 85% over 10 years, gold, of course, ran from $35 an ounce to $850 an ounce. There is no other way out, save a global depression and a renunciation of the debt. Those are the two choices. I think the former is more likely than the latter. James Connor 7:25 So I want to get your views on the Fed now. Your good friend Jerome Powell is living the good life right now in Jackson Hole, Wyoming, I hear that's a very nice place, by the way. Have you ever been? Rick Rule 7:35 I love Jackson Hole. I really do. It's, it's, it's it's a place where the billionaires are chasing the millionaires out of the market. But it's a it's a wonderful place. James Connor 7:45 apparently, Powell is going to speak on Friday. Are you expecting anything from this announcement? And if so, what? Rick Rule 7:51 I don't pay much attention to the top of the Fed, which is highly politicized. I'm in contact with some of the lower ranked employees of the Fed. Some of them are my subscribers, and I converse with them regularly, and it's been eye opening. I had a very low opinion of them, and I found out I'm wrong. They're well meaning and well informed people. The bias of the employees of the Fed is to keep interest rates high, they see themselves as the only guardian against the destruction of the US dollar by the political class. They don't think and I think they're right that the executive or Congress has any interest in controlling spending, and they think that artificially low interest rates will bring about the demise of the dollar faster than it needs to occur. Powell is between a rock and a hard place. The right thing for him to do is to keep interest rates high. The political pressure on him to do otherwise is overwhelming when he cracks. I don't know, but I think that there's at least a 90% probability that he does crack. If he cracks, then I think, passed his prolog. And when I say passed his prolog, I remember the first part of the decade of the 70s, when inflation in the gold price in the period 1970 and 1971 went up. In 1975 the Fed decided to raise interest rates. When they raised interest rates, the gold price fell by half. It went from 200 bucks an ounce, 200 bucks an ounce. At the end of 1975 they lost their nerve and lowered interest rates, and you had a ramp in the gold price from $100 an ounce to $850 an ounce. If the Fed capitulates, if the political class makes them capitulate, then I'm afraid gold was really, truly off to the races. James Connor 9:44 And I'm sorry when you say Powell cracks, you mean when he starts cutting rates, Rick Rule 9:51 that's correct, when he does the wrong thing, when he capitulates to the political class. James Connor 9:54 So this is one of the things that really annoys me, is that these central bankers and politicians there. Out of touch with reality, and the one thing that we've seen in q2 from company after company after company is that the consumer is experiencing economic duress right now, and they're feeling the pain with higher interest rates and also high inflation. And we've seen this from company after company. We saw it out of Amazon, Nike, McDonald's and Starbucks, like if you can't afford a $5 happy meal at McDonald's, you know, there's serious issues, right? And even at Home Depot and Lowe's, they both came out and said, the consumer is not spending money on renovations. They both took down their guidance for the remainder of the year. But what? What's your sense on the consumer and and do you think the US consumer is experiencing a lot of pain right now. Rick Rule 10:42 I do you know, I think the US has a stronger economy than people believe, but it's a two tier economy for people like me, with access to credit, artificially low credit, low price credit, and the knowledge of how to deploy credit. This is the best possible economic environment. This circumstance is tailor made for a guy like me, but most of the economy isn't made up of people like me. Most of the economy is made up of people who only have access to consumer credit, which is to say they're paying 20 or 22% on their credit cards, and they're close to maxed out. They're using credit to sustain wants as opposed to needs. They aren't using the credit in a credit arbitrage. In other words, using that credit to make more money to service the debt. And I think the chickens are actually coming home to roost. The problem with the level of pricing is not that goods have become more expensive, it's that the medium of exchange has become worth less. People don't seem to get that. While wages have been increasing, they haven't been increasing anywhere near as rapidly as prices have. When you look as an example at in my area, the functional minimum wage is $20 an hour. You can't get people to work for less than $20 an hour. You and I think about $20 an hour in the context of 20 years ago. But the truth is, if you make $800 a week, $3,200 a month in this market, you almost can't afford to rent in this market. So this so called princely wage of $20 an hour compared to the statutory minimum at seven and a half or whatever it is, still doesn't constitute a living wage. And I think that dichotomy is increasingly impacting the consumer's ability to finance to sustain the lifestyle that they would like to sustain, and I think that that will yield financial and social problems. James Connor 13:01 just to reinforce the point that you just made. So the value of a home, for example, is worth a million dollars back in 2019 early 2020, it's now worth 2 million. The value of the home hasn't gone from 1 million to 2 million. It's just that the purchasing power of the US dollar has been cut in half. Rick Rule 13:19 Correct, absolutely correct. Andrew Brill 13:21 Economist Steve Hanke joined wealthy on this week. He feels, if history does indeed repeat itself, we're headed for a recession because of the rising unemployment rate. Steve also feels that candidates for president are weaponizing the economy to win the election. James Connor 13:39 So Steve, we have a lot to discuss. Unemployment continues to tick higher, and we continue to see weak q2 numbers coming from many discretionary companies, which are suggesting a weaker consumer. And I want to start with the unemployment rate. After bottoming at 3.5% in 2023 the unemployment rate has been climbing ever since then. We saw an uptick in the July number to 4.3% up from 4.1% the previous month. And I want to get your thoughts on this. And if you're concerned about this move higher, as we've seen here, and does it continue to go higher in the ensuing months? Steve Hanke 14:16 Well, there's actually some measures of focus on the unemployment rate, or actually the change in the unemployment rate, and those measures suggest that we're actually in a recession right now. I don't pay that much stock in those per se, but it is relevant, because the press pays a lot of attention to them. They've, they've latched on to these measures, and, you know, made some noises about it, especially, you know, a week ago, when the market took a hit, every everybody jumped on the fact that the unemployment rate was going up. And if you, if you measure things. This is the way they measure some of the econometric models they have. It suggests that we're probably in a recession. The main thing that's important about it is that if the unemployment rate goes up and people are unemployed, that means they're not earning income. And if that's the case, we have a situation where people don't have as much spending power, and if they don't have as much spending power, they don't have as much buying power. And so that's why it's important. It's important because people don't have regular income coming in, and they tend to hunker down. They don't don't have the buying power and spending so, so that's that's one thing, and if you look at the at the forward expectations about revenue and earnings, it suggests that these unemployment rate increases, or are kind of in the wind. They're they're notching down for forward guidance. So, so, so that aspect, that's kind of the micro part of the picture, it looks like things are slowing down. Now, when I, when I look at the picture in the macro point of view, the the fuel for the economy is what it's a money supply. And the stock of money in the United States is lower now than it was in July of 2022 and that's only happened four times in the history of the of the Fed, since 1913 and every one of those was followed by a recession, or in the case of the 1929 1933 contraction in the money supply, we had, of course, a Great Depression. So he either had a great depression or a recession following those contractions. And that's why John Greenwood and I think we will enter a recession either late this year or early next year in the United States, and that's why we by the way, we think that the inflation numbers will keep coming down. There are 2.9% in the United States now, and Greenwood and I had our forecast based on the quantity theory of money. We said they'd be two and a half to 3% by the end of the year. So it looks like we're going to hit the hit the nail on the head when it comes to our inflation forecast going down using money and the quantity theory of money now going up to remind you we said, once the money supply accelerated after covid hit in 2020 the money supply went shooting up in the United States. It actually peaked out in February of 2021 at 27% per year. Now that's that's way higher than hankies golden growth rate of about 6% a rate that's consistent with hitting the Fed's inflation target of 2% So sure enough, money supply zooms up. We get inflation Greenwood and I said we thought it would peak at 9% 9% It peaked at 9.1% so we hit the nail on the head, going up. We hit it going down. Why? Because we focus on changes in the money supply, and that gets transmitted Jimmy through the economy. It changes asset prices, economic activity and and eventually inflation. But all of this with lags, so so people don't, don't pay any attention to it. What what's happening in the economy now is driven by what was happening in the money supply a year and a half or two years ago. So so that, that In summary, is, if you look at the micro data, it's kind of consistent with this macro monetary picture that I just gave you of slowing down, going into recession, inflation, continuing to come down. That That picture is, if you look micro, individual companies or sectors of the economy that have a bunch of companies in each one of those sectors, those sectors look like slow down, as in the wind. James Connor 19:41 So just to clarify the money in the money and components of the money supply, or the fuel to drive the economy, the more money in the system, the stronger the economy. And conversely, the less money in the system, the weaker the economy. Do I have that correct? Yes. And then after a change in money, so. Supply, then you get a change in asset prices. And I guess we're starting to see that now with this contraction and a lot of asset prices are coming down in value. Steve Hanke 20:10 right now let's look. Well, there are lots of different kinds of asset prices, but one of them happens to be the stock market. And if you look at the stock market right now, it's, it's, the valuations are very elevated. If you look at Bob Shiller Yale has has the cape model, cyclically adjusted P, E ratios and and that, by that measure, by the Schiller Cape measure. Right now, it's 35 times higher than the average over the past decade. So it's very high. There. It's, it's, there are only three more expensive periods in time since, since the 19th century. Given Schiller's measure so very expensive, if the second kind of measure, some people don't like that measure that adjusts for inflation, and they have various critiques of it, so they want to go with the forward PE ratios. That's a more standard kind of thing. And if you look at that, the forward PES are very high. They're not as high as they were in 2000 or late in 2020 but they're, they're very high. So that's another measure, very expensive. Very expensive the third kind of standard model to look at is what to call the Fed model, where they look at the difference between bond yields and stock yields. And right now, stock yields are low compared to bond yields, and that indicates that the prices of stocks high, if their yields are low, especially relative to bonds, that's that's an again, indicating price pricey. So everything's consistent with a very elevated stock market right now. So I think what we're going to see if that's the case, and if there's monetary, Quantity Theory of Money is right, and we start slowing down. Top line revenues will slow down. The cost will continue to under, undermine margin. So their revenue is going down, and I think the margins will be going down and, well, we'll end up seeing a lot of these PES coming way off. I mean, they're set up to get hit James Connor 22:57 the Fed and the government, they're going to put forth numbers that will make them look good. Steve Hanke 23:06 Well, the numbers are the numbers. They'll try to spin them to make them look good. And particularly, remember, we've got an election coming up in the United States in November, only a few months away. And believe me, the number one that those who manufacture the data are primarily Democrats, the civil servants, the civil services, is lorded with Democrats, not not Republicans. So what? What is the incumbent party in the United States, it's the Democratic Party, so they'll be trying to spin everything possible. Even the technocrats spin it as much as they can in a positive way. And the political appointees in the White House and throughout the US government, we know they will overtly be trying to spin it the right way. That's the name of the game James Connor 24:03 That's politics. Steve Hanke 24:07 that's spin. Andrew Brill 24:09 Jared. Dillian of the daily dirt nap, joined us and explained what will happen in the market with a rate cut that's already expected. And in a new white paper we discussed. Jared explained how a private equity bubble exists and is about to burst. He touched on how this will affect the stock market if the private equity markets collapse. So let's get into the soap opera that is the Fed that everybody's looking at, and they're all in Jackson Hole this week, and Chairman Powell speaks on Friday. What are you expecting? I know that I read your daily dirt nap, and if anybody hasn't read it, they should go read it, because it's it's extremely informative. You don't think we should cut rates, but you feel like a rate cut is coming. Jared Dillian 24:57 I think a rate cut is. Much locked in at this point, 25 basis points, and it's, it's what is communicated as to any subsequent rate cuts that's really going to matter. So, I mean, there is a chance that we don't cut 25 I mean, if you look at it from Powell standpoint, Powell is a hawk. He's very concerned about inflation. He wants to get inflation down. The target CPI is still 2.9% I think he would rather see more progress on inflation before cutting rates. I don't think he's going to commit to a rate cut cycle, or a 50 basis point rate cut or anything like that. So I think, I think, I think he'll communicate that we'll get 25 in September. But I overall, I think the tone of the Speak will, speech will be hawkish, and I think it's, I think it's going to be very negative for markets. And maybe, you know, maybe not on an ongoing basis, but on the day of the speech, I think it's going to be negative for market. So Andrew Brill 26:02 it seems like the market has priced in a bunch of rate cuts, starting with September. If you, if he's hawkish, like you say, do you expect the markets to react negatively? Jared Dillian 26:15 Well, first of all, you know, if, if you, if you look at Fed Funds Futures, you know, we have about four rate cuts, three and a half priced in before the end of the year, and we have three meetings before the end of the year. So the futures markets are implying some at least a 50 basis point rate cut somewhere in there. And I don't think that's going to happen. I think that's massively mispriced. If you look at two year notes, we're pricing in about six rates, rate cuts total. Again, I don't, I don't think that's going to happen. I think that's mispriced. So, yeah, I think it's I think we're going to get one before the end of the year, and that's going to be it. Andrew Brill 26:59 Let's get into your white paper a little bit. And I know that this is exciting news. Also, you have about a 50 page paper coming out on the 22nd and we will provide a link, so anybody watching that wants to check out jared's work you can, and it's, it's a little alarming, I guess, because you think that there's, there's some trouble coming down the line, and it's because of private equity. Can you explain to us a what private equity is and what the trouble might be? Jared Dillian 27:29 Well, private equity is when you have an entity that forms a portfolio of private companies. Okay, so there's, obviously, there's a difference between private companies and public companies. And public companies. Public companies, you can buy their stock on an exchange. Private companies, you can't. They're just privately held. And what private equity does is they buy private companies and assemble a portfolio, and they, quote, unquote, apply management techniques to try to increase efficiency and increase profitability, and they hold these companies for about three to five years, and afterwards they sell them at a higher valuation, hopefully, private equity has grown at at a growth and then seeing growth rate over The last 10 years. It's now an $8 trillion industry. It's, it's, it's approaching the size of the actual listed markets. There are 17,300 private equity firms in the US. They're all competing for deals. See, the thing is, is that private equity actually made a lot of sense in the 2000 10s, because you could borrow at 0% interest rates and buy a company of four or five times earnings and and sell it out at a higher multiple later. Now you're borrowing at five and a half percent, 6% and you you have you're buying companies that are trading at 10 or 12 times earnings. So there's so much competition for deals, the quality of deals is going down and down. And what you've seen is, is that the returns of private equity are going progressively lower. Part of the story for private equity is actually about the demand side. There's a huge demand for private equity among pension funds and family offices and university endowments, particularly University endowments, the typical university endowment has 30% of its assets and private equity. It's illiquid. They can't sell it. They can't get cash out of it. There's no more cash distributions. So because of this demand, that's really what's I mean, there's so much money flowing into the space, it's created a bubble. There is a bubble in private equity. I'm not entirely sure. How it's going to unwind, but if it does unwind, it could have huge effects for the economy. Andrew Brill 30:06 Now, what are those effects? Obviously, if you're talking about pension funds and university endowments that get caught up in assets that a private equity firm can't sell and make money off of the private equity, they're going to have to refinance their debt, and at this point, that's hard to do, unless rates start coming down, because they borrowed it. If they did this in 2019 and they bought companies and they expected to sell them, it's now five years, but expected to sell them in two to three years. Well, they've hold on to them for an extra couple of years, and now they're paying more in interest payments. That's going to spell some trouble. When these things can't get sold or get they have to sell them at a fire sale. Jared Dillian 30:53 that's really what I'm concerned about, is the fire sale, if there is some kind of unwinding of this and these companies have to be sold at distressed prices. You know, private valuations should mirror public valuations, right? So we all know valuations are high right now, if public markets go down 20% private markets should also go down 20% and what I'm concerned about is if the returns suck going forward, if they're if they're terrible, then what you could see is forced redemptions out of, you know, the endowments and the pension funds and the family offices and stuff like that. And then you're talking about companies being sold at distress prices. So there's, there's really two parts of this. One is, if you have a private business, if you, if you are an owner of a business, my suggestion is, is to sell now, sell as quickly as you can, because you're going to be able to sell that a higher multiple now, but you won't a couple of years from now. So that's number one, if you're thinking of retiring or getting out of the business, I would encourage you to sell now. But two, if, if, with if this $8 trillion goes into liquidation, it's going to force down valuations across the spectrum, and what it's going to do is, if we have a bear market in stocks, it's going to exacerbate the bear market and extend it over a very long period of time. The thing about bear markets is they usually don't last very long. I mean, even the financial crisis only lasted 21 months, right? Like that's not it's really less than two years. That's not really a long time, but if you had a recession that lasted for three, four or five years because of this, that's what I'm really concerned about. Andrew Brill 32:49 Andrew Perillo, of victory vote advisors joined speak up this week. He gave advice on what to do in the event of a market downturn like the one we had at the beginning of covid where the market plummeted 35% Andrew also looked into the future of trading and managing your own money. James Connor 33:09 One thing I do want to ask you about, when it comes to managing your own money, there's a number of risks, and one of which is volatility. And you touched on this earlier. We had that pulled back in the first week of August, for whatever reason, maybe it was the higher unemployment number which rose to 4.3% but what would you suggest to investors who are managing their own money, and how do they deal with these, with these pullbacks in the market? Because the one we saw in the first week of August was mild. You know, when you look at, say, the covid crash of 2020 or the great recession that we saw in oh 809, those are significant pullbacks. What would you tell investors who are managing the whole meaning? Andrew Perillo 33:49 Yeah, let's just think about the covid Scare. Okay, in 30 I mean, in a month, in roughly 30 days, it will be market Madonna, 35% heat drop. Of course, we know what happened. It did come stopped right back the what was the right thing to do then? Well, to me, it would just be to hold, and that would be what, so what? And by the way, that sell off back, you know, a few weeks ago. Now, I guess three weeks ago was in part, because of the Japanese central bank and so forth and that. So that's that that ignited some concerns about carry trays and such, which the average person couldn't possibly make sense of, okay, and even professional making sense of that one. But you know, is that worth like, Is that worth really taking your assets out of a strategy because of something that happens that you don't even understand. And I would say probably not. I wouldn't. And so what would I do during intervals like that is, I would just say that people focus on the long term, and unless there's something that's structurally changing in our in our system, whether it's, you know, taxation or. A monetary policy. And by the way, a monetary policy, to me, the Fed has been very transparent. They've said exactly what they're going to do since March of 22 almost every week ago. Well, back in 2223 the governor coming out almost every week saying, you know, and reinforcing the message. And they did exactly what they said, you know, what will they do in the next couple of months? I don't know, you know, there's some softening. Inflation has come down. Are, you know, but again, inflation, yeah, it spiked because of supply chain problems during covid. But I remember when inflation was in the teens and where interest rates were in the teens, back in late 70s, early 80s, and they peaked in 1981 that's 15% on 20 year treasury, it's almost 16% almost 16% or 10 year treasuries, and also longer treasuries. But, you know, so kind of put things in context, things are it's hard to find excesses now. So there are there systemic problems? Yeah, the government debt. The government debt is back to a level relative to GDP, where it was a World War Two. And, you know, people recognize that and see that as long as the as long as people have confidence in our government, in our economy and in our monetary policy, then they don't have to be making changes in their portfolio. It seems to me, James Connor 36:19 I want to get your thoughts on where the wealth management industry is going in the next five plus years? And I mentioned at the onset that 50% of Americans have Do It Yourself trading account, or they're looking after their own investments. And do you think that number is going to keep growing? And when I ask about this, I guess I'm looking at, especially during covid, and I'm thinking about Robin Hood, and the number of people that got on Robin Hood and just started day trading, and I know that was a lot of fast money, a lot of people just sitting at home, but I think the last thing I read, Robin Hood has 25 million accounts and $130 billion in aum. Do you think this trend is going to keep going, where people are managing their own financial affairs, and less money is going to be allocated toward financial advisors? Speaker 2 37:11 I do now, you know how what's their what's their risk profile? Will it be day traders? Will they be, you know, buying individual security, individual securities, or will they be buying, you know, just a broader, diversified ETF? I think that the latter is probably what they're going to do. Yes, there's a cohort that wants to take the risk and that, you know, is excited by the the opportunity to make lots of money really fast. That's, that's, that's a, that's a process that is hard to sustain and is fraught with danger because people get a little over their skis on that stuff. But now that's But look, if you, if you, if you, if you allocate the right proportion of your portfolio to the riskier strategies, that's fine. Yeah, sure. Do I think it's going to continue where people do their own money management? Yes, I do. And you know, what can I say? I just think this so called wealth management. To me, health is wealth. It's not money. But anyway, they want to call it wealth management. To me, it's investment management, but anyway, and I talk about that in the book, but yes, people will continue to do it. And why will they do it? Because they can control the expenses. And they've, they've seen enough studies that have listened to, you know, Warren Buffett enough and Vanguard enough and so forth, to realize that fees matter. And they can say fees for sure. They don't know what the outcome of their portfolio is going to be, but they know the outcome of their fee account will be, and it'll be that they're not paying any fees to speak up and you know, and who doesn't want to have lower fees? Andrew Brill 38:45 Thank you for watching this week's recap. Don't forget to head over to wealthion.com and hit the find an advisor button for a free, no obligation, portfolio review, and please follow us on social media for the latest news and information to help you invest wisely if you haven't done so already, please make sure to like and subscribe to our channel. Don't forget to hit the notifications bell so you never miss a video. Thanks again for watching if you like this content and are looking for more ways to keep growing your investments. Watch this video next until next time. Stay informed to be empowered and may your investments flourish.
